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Mixed Views On MMC Move To Buy UEM


Extract from New Straits Times (06/10/10)

OSK says it would be an unusual move by MMC while Mercury Securities sees the deal as a good fit for MMC to strengthen its construction and infrastructure business.

Analysts gave mixed views over MMC Corp Bhd's (2194) plans to buy over UEM Group Bhd, with many saying that they were not sure of its rationale and that the intention had been made known only in recent days.

On Monday, MMC acknowledged that it had made a preliminary proposal to acquire UEM. It was responding to a query from Bursa Malaysia following reports of the takeover bid.

Earlier reports, which did not name sources, said MMC was making a RM15.6 billion offer to buy over UEM whose ultimate prized possession is undoubtedly PLUS Expressways Bhd, concessionaire of several highways,
including the North-South Expressway.

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Arina Development To Build 21-storey Tower In Malay Heartland Kampung Baru


Extract from Bernama (06/10/10)

NILAI -- Arina Development (M) Sdn Bhd will build a 21-storey business suite at Jalan Raja Muda Abdul Aziz in Kampung Baru, the only Malay heartland in metropolitan Kuala Lumpur.

The RM26 million Arina-Uniti Tower, on a 16,858 sq ft site, is a joint-venture between the company and Kampung Baru landowners.

Project Director Mohd Nasir Che Fa said contractors have been appointed and work to demolish a three-storey old building had started.

Piling work is expected to start next month and the project is slated for completion in two-and-a-half years or three years, he told reporters.

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Platform To Solve Common Housing Problems


Extract from The Star (06/10/10)

A STATE-level meeting involving all Joint Management Bodies (JMB) will be held at the end of the month to provide a platform for the sharing of ideas and solving common problems.

Selangor housing, building management and squatters committee chairman Iskandar Abdul Samad said they expected about 3,000 people or three per JMB to attend the event.

“We will first have a session to educate the JMBs on their roles as well as provide information like agent and developer liability.

“We will then put them into groups to discuss topics related to the JMB,” he said.

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Ivory May Remain Firm Before Rebounding


Extract from Business Times (06/10/10)

SHARE prices on Bursa Malaysia resumed their technical rebounds yesterday. Its overall declining counters continued to outpace its advancing counters by 411 to 319.

The Kuala Lumpur Composite Index (KLCI) rebounded from its intra-day low of 1,468.02 to its intra-day high of 1,472.32 yesterday. It closed at 1,472.19 points, giving a day-on-day gain of 9.92 points, or 0.68 per cent.

Ivory Properties Group Bhd staged a technical rebound yesterday. Its daily price trend rebounded to close at RM1.26, posting a day-on-day gain of 11 sen, or 9.57 per cent.

Chartwise, Ivory's daily price trend fell from its high of RM1.41 on July 30 2010 all the way to its intra-day low of RM1.11 on October 1 2010, giving a gain of 30 sen, or 21.28 per cent.

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M'sia, Here We Come!


Extract from New Straits Times (04/10/10)

INVESTORS in overheated markets may be arriving.

Those in Singapore and in China - which have introduced fresh rounds of property cooling measures such as limitations on loans and options for affordable properties - are eyeing good buys in other parts of Asia and the United Kingdom, industry specialists observed.

Hong Kong-based property investment firm IP Global Ltd - which has US$800 million (RM2.48 billion) of assets under management - said Malaysia might offer "the best option" for buyers thanks to its steady market, better yields, sensible tax system and easy access to loans.

The firm disclosed it has achieved double-digit returns on capital for its properties here.

Currently, it has about 500 properties in Kuala Lumpur enjoying 96 per cent occupancy and is poised to increase its investments in residential and commercial space in the next three months.
Foreign buyers making their way to our shores

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Sunway City — Limited Upside To Stock


Extract from The Edge (05/10/10)

Sunway City Bhd (Oct 4, RM4.02)
Maintain hold at RM3.90 with fair value of RM4.13: We are maintaining our “hold” rating on Sunway City (SunCity) with our fair value revised to RM4.13 per share based on a 30% discount to its revised NAV estimate of RM5.90 per share.

We see value in this company, and our call is premised on: (i) Limited upside to the stock as share price has gained 20% this year; (ii) Valuation is a bit stretched — FY11F fully diluted PER of 14 times against the sector average of 10 or 11 times; (iii) 50% of gross development value (GDV) (RM2.6 billion) of planned launches in 2011 are made up of overseas and non-key projects.

Following our visit, we are more convinced about Sunway Velocity and Damansara, which have a combined GDV of about RM600 million.

Management has guided strong interests in its Velocity shop office units. We think a lack of new and quality commercial development in the area will drive demand.

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RHB Research Maintains Overweight Stance On Property Sector


Extract from Bernama (05/10/10)

KUALA LUMPUR -- RHB Research Institute Sdn Bhd is maintaining its overweight stance on the property sector with expectations for the price of property stocks to increase.

"We believe once the regulatory risk is cleared (pending announcement from the authority) and if the new measures are in line with our expectations, we see the strong potential for property stocks to outperform going forward," it said in a research note on Tuesday.

The research house believes that there are still strong catalysts to drive demand for properties. They include faster growing of youngster to drive big-tickets purchase, low mortgage rate, aggressive promotions by developers and strengthening ringgit.

It said the strengthening ringgit was likely to attract higher foreigners' participation in the Malaysia property market due to higher expected return from investment.

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Penang Property Costing More


Extract from The Star (05/10/10)

PENANG property has always been among the most expensive in the country.

The increase in property prices in recent years has made it increasingly difficult for buyers to make their first purchases — and now the fear is that squatter demands will escalate the problem even further.

It is estimated that there are about 1,000 squatters in the state.

The most recent incident saw Kampung Pulau residents, some of whom had lived there for close to 70 years, seeking a three-room low medium-cost unit with a parking lot each in-lieu of the RM40,000 compensation.

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Two Foreign Firms Make PTC List


Extract from The Star (05/10/10)

Shortlisted candidates for project include E&O

GEORGE TOWN: Two foreign property development companies – one based in Singapore and another in Hong Kong – and Eastern & Oriental Bhd (E&O) are among seven candidates shortlisted to bid for the new Penang Turf Club (PTC) development project.

Most of the four remaining candidates are headquartered in Kuala Lumpur.

StarBiz learnt that the Singapore-based group is one of Asia’s largest real estate groups which has public-listed companies in Hong Kong and total assets worth over US$40bil.

Those shortlisted for the tender have the option of buying the 23.09ha site for RM200 per sq ft or developing the site jointly with PTC.

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Brem Close To Buying Land For RM100M


Extract from Business Times (05/10/10)

BREM Holding Bhd, a relatively small property developer, is close to acquiring two plots of land totaling 16ha in the Klang Valley for some RM100 million, a company official said.

"We are at an advanced stage of negotiations to buy land in Wangsa Maju (Kuala Lumpur) and Petaling Jaya (Jalan 225)," executive director Low Yew Hwa told Business Times in an interview last week.

The group intends to build high-end bungalows in Wangsa Maju, while in PJ, it has plans for a commercial development comprising offices and showrooms.

Work on these projects is, however, expected to start only one or two years down the line, Low said. Brem currently owns 200ha of land, most of which is in the Klang Valley and the rest in Sungai Petani, Kedah.

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