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Possible Mortgage Cap On Property Not A Concern


Extract from The Star (03/09/10)

Buoyant consumer sentiment, demand for good locations seen supporting property purchases, say analysts

KUALA LUMPUR: Preemptive measures to curb purchases in certain property segments may yield temporary results as buoyant consumer sentiment and demand for good locations are expected to sustain.

Property analysts said there could be a short-term knee-jerk reaction to Bank Negara’s possible imposition of an 80% loan-to-value ratio (LVR) for mortgages to avert the risk of a potential property bubble.

CIMB research head Terence Wong is not overly concerned over such moves, pointing out that the previous imposition of a 5% real property gains tax last October had only resulted in a short-term cooling of demand.

“This will be effective in cooling down the market for a few months. People will step back and pay more attention to the launches and product offerings instead of simply jumping onto the bandwagon,” he said.

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AmanahRaya Poised To Have Third Biggest REIT


Extract from Business Times (03/09/10)

AMANAHRAYA Real Estate Investment Trust (ARREIT) expects to become the country's third biggest property trust by asset value after it completes buying three new properties this year.

It is currently the fourth biggest REIT with assets of RM1 billion, after Sunway REIT, CapitaMall REIT and the YTL group's Starhill REIT.

ARREIT plans to grow assets by 80 per cent to RM1.8 billion by next year, its group managing director Datuk Ahmad Rodzi Pawanteh said.

Yesterday, the trust signed a deal to buy three properties owned by Selangor State Development Corp (PKNS). "The three new properties, namely Menara PKNS, Kompleks PKNS and Shah Alam Convention Centre Mall, will help strengthen our asset base," Ahmad Rodzi said.

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SunCity To Buy Stakes In Sunway Lagoon For RM128.6m


Extract from The Edge (03/09/10)

SUNWAY City Bhd (SunCity) has signed share sale and purchase agreements with Datuk Lim Say Chong and Oh Kim Sun respectively for the proposed acquisition of their stakes in Sunway Lagoon Sdn Bhd.

In a statement to Bursa Malaysia, SunCity said the proposed acquisition represents a total of 45 per cent equity interest in Sunway Lagoon and cost RM128.6 million.

Sunway Lagoon is an established world-class theme park and recreation destination.

It holds 49.2ha in Bandar Sunway and 46ha in Sydney, Australia. For the 18-month financial period ended December 31 2009, Sunway Lagoon reported a group net profit of RM53.3 million.

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AmFIRST REIT Undertakes Further Acquisitions


Extract from The Edge (03/09/10)

KUALA LUMPUR: Mayban Trustees Bhd (MTB) has proposed to acquire a parcel of land with a five-storey office building in Jalan Teknokrat 7, Cyberjaya from FSBM HOLDINGS BHD [] for RM51.5 million cash, to be injected into AmFirst Real Estate Investment Trust (AmFIRST REIT).

In a statement on Sept 2, Am ARA REIT Managers Sdn Bhd, the REIT's manager, said FSBM had accepted an offer made by MTB. The office building was completed on Jan 31, 2002, with a lettable area of 112,151 square feet, of which 29,008 sq ft is either partly occupied by the vendor or is vacant.

AM ARA said the vendor would provide an assurance and guarantee that the rental income that the purchaser would receive from the untenanted area would be RM8.14 million for a period of six years, comprising the agreed rates of annual rent of RM1.29 million for the first three years and RM1.42 million for the remaining three years.

In a separate announcement, Am ARA said the REIT was also acquiring a retail lot unit No S2.140B, 2nd Floor, The Summit in Subang USJ from SYF Trading Sdn Bhd for RM6.8 million cash. It comes with a guaranteed monthly rental income during a one-year period of RM68,929.73 totaling RM827,156.80.

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PKNS Injects 3 Properties, Valued At RM270m, Into AmanahRaya REIT


Extract from The Edge (02/09/10)

KUALA LUMPUR: Perbadanan Kemajuan Negeri Selangor (PKNS) is venturing into the real estate investment trust (REIT) industry, with the injection of three PROPERTIES into AmanahRaya REIT (ARREIT).

PKNS had on Thursday, Sept 2, injected the three properties valued a total of RM270 million in the REIT. PKNS will receive RM162 million cash and a stake in AmanahRaya REIT.

The properties are its 20-storey headquarters -- Menara PKNS in Petaling Jaya, and the four-storey Komplek PKNS and the five-storey SACC Mall, both of which are in Shah Alam.

In return, ARREIT will issue 122.7 million units valued at RM108 million, at an issue price of 88 sen per unit. PKNS will also receive RM162 million cash for ARREIT. The latter will finance the cash payment by new borrowings.

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Sunway City Berhad Builds Its 1st Townhouse In Ipoh


•SunCity transfers its expertise in building townhouses in Klang Valley to Ipoh

•MontBleu Residence is located in Sunway City Ipoh, a vibrant and thriving township

IPOH, PERAK, 2 SEPTEMBER 2010 – Sunway City Berhad (SunCity) continues its successful track record in building townhouses with the launch of MontBleu Residence, its first townhouse development in Ipoh.

Leveraging on the expertise of the Group, MontBleu Residence comprises 220 units of well-planned and modern 3-storey townhouses that is surrounded by lush greenery with a 25 ft wide backyard garden. This is also aligned with the SunCity’s ‘Lifestyles of Health & Sustainability’ concept which promotes green and sustainable developments for a better quality of life.

The development spans over 11.01 acres with standard intermediate built-up from 1,889- 2,066sq ft. Each of the unit comes with 3+1 bedrooms and 4 bathrooms.

The entire gross development value of the project is RM93 million with selling prices starting from RM399,000 onwards. The development is expected to be completed in September 2013.
Mont Bleu Residence

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Property In Focus: Renewed Interest In Property Stocks?

Extract from The Edge (01/09/10)

KUALA LUMPUR: Property has long been known as the laggard sector, the market underperformer, and investors would typically only flock to property and property stocks after a rally in the stock market.

However, does this still hold true in today’s ever-changing environment? Could property stocks be due for a comeback in the near future?

“Property companies are reporting solid revenues, margins and profits. There is no reason for these not to be reflected in their share prices,” said an analyst, noting that the property market was doing well and yet most property stocks were trading well below their historical book value, and on single-digit earnings multiples.

However, the main concerns are the accounting standards — IFRIC 15: Agreements for the Construction of Real Estate and FRS 111: Construction Contracts — which call for a delay in revenue recognition until the construction completion date.

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Property In Focus: Sunrise Expanding Beyond Mont’Kiara

Extract from The Edge (01/09/10)

KUALA LUMPUR: From March 23, 2010 to Aug 9, 2010, Sunrise Bhd executive chairman Datuk Tong Kooi Ong acquired a total of 2.15 million shares, boosting his total direct and indirect stake in the company to 121.89 million shares, or 24.6%, according to filings with Bursa Malaysia.

Sunrise’s shares have fallen 3.4% year-to-date, compared to a 11.8% rise for the FBM KLCI.

At Monday’s close of RM1.99, the stock is trading at half its recent peak of RM3.85 in July 2007.

Its shares are also trading 10% below their net assets per share of RM2.21 as at June 30, 2010, and on 7.4 times trailing FY10 earnings (for financial year ended June 30, 2010).

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Property In Focus: Selangor Dredging’s Teh Raises Stake Aggressively


Extract from The Edge (01/09/10)

SELANGOR Dredging Bhd’s managing director Teh Lip Kim had started buying more of her company’s shares very aggressively since July.

From July until Aug 25, she acquired a total of 4.45 million shares. She now has a total direct and indirect stake of 228.84 million shares, or 53.9% of the company.

As at Monday’s close of 67.5 sen, Selangor Dredging’s shares are trading at a steep discount to their net asset per share of RM1.20 as at June 30, 2010. For the first quarter ended June 30, 2010 (FY11), the company posted a net profit of RM5.69 million, or 1.34 sen per share.

The stock rose to its 52-week intra-day high of 77.5 sen on Aug 18, 2010, up from the low of 51.5 sen on April 30, 2010.
Teh

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Property In Focus: YNH Off Radar Since Aborted Sale Of Menara YNH To KFH


Extract from The Edge (01/09/10)

OVER at YNH Property Bhd, the controlling Yu brothers have also been increasing their stakes rather aggressively.

Chairman Datuk Dr Yu Kuan Chon and managing director Datuk Yu Kuan Huat acquired a total of 6.112 million shares this year until Aug 23, bringing their total direct and indirect stake to 128.602 million and 128.469 million shares, respectively, or a 32.1% stake.

YNH Property, formerly a favourite among analysts and fund managers, fell off the radar after the proposed sale of its benchmark-setting Menara YNH project in Jalan Sultan Ismail, Kuala Lumpur, to Kuwait Finance House (KFH) was called off.

The company’s net profit for the three months ended June 30, 2010 came in at RM16.03 million, up 3.8% year-on-year and 8.6% quarter-on-quarter. For the half year, the company reported a net profit of RM30.79 million, or 7.72 sen per share.

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