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Tuesday, January 29, 2008

REITs on the rise in Malaysia

KUALA LUMPUR: Although it is a standard practice in certain countries for property developers to become Real Estate Investment Trust (REIT) promoters and to inject their own projects into the trust, Malaysians are still skeptical and considers it an “asset dumping” exercise by the companies, said Asia Pacific International Real Estate Federation (FIABCI) Regional Secretariat secretary general Kumar Tharmalingam. Several developers that have plans to enter the REIT market this year include TA Properties Sdn Bhd, Bandar Raya Development Berhad, UEM Land Sdn Bhd and Sunway City Bhd. Budget 2008 proposed an increase in foreign ownership on REITs management companies to 70% from 49%, with the bumiputera-ownership requirement remaining at 30%.

(The Sun 29-1-08)

Property to rise above stock market volatility

PETALING JAYA: There is still growth potential in the local property market although the prevailing volatility of the stock market has turned property consultants and analysts more cautious of the upside. While concerned that the recent stock market jitters, which saw the benchmark Kuala Lumpur Composite Index (KLCI) tumble 54.12 points or 3.84% last Tuesday, would affect property stocks in the near term, they are upbeat that the sector is able to ride out the negative investor sentiment. Property consultant DTZ Nawawi Tie Leong Sdn Bhd executive director Brian Koh said volatile markets would present both threats and opportunities to institutional funds, who may view real estate in Malaysia as an attractive asset class, given a lack of alternatives in volatile markets elsewhere.


(29-1-2008 The Edge)

SP Setia warrants surge 112% on debut

KUALA LUMPUR: Warrants of SP Setia Bhd surged 112.5% or 54 sen to close at RM1.02 yesterday from their reference price of 48 sen on their first day of listing. The warrants of the property developer opened at 88 sen, up 40 sen. There were 30.64 million units done at prices ranging from 88 sen to RM1.04. However, its share price closed unchanged at RM4.96. SP Setia had issued 168.15 million warrants on the basis of one warrant for every four existing shares held in SP Setia.


(29-1-2008 The Edge)

BLand in pact on Vietnam bridge project

KUALA LUMPUR: Berjaya Land Bhd (BLand) has entered into an agreement in principle with three Vietnam companies on the proposed construction of a bridge across the Dong Nai River linking Nhon Trach District, Dong Nai Province to Ho Chi Minh City. In a statement to Bursa Malaysia yesterday, BLand said it entered into an agreement with Vietnam’s Tin Nghia Co Ltd (TNC), Development Investment Construction Corporation (DIC) and Vietnam Infrastructure Hexagon Ltd (VIHL) on the proposed bridge project. Under the agreement, BLand said the parties had agreed to establish an enterprise either in the form of a limited liability company (LLC) or a joint stock company or to form a business cooperation (JV) to invest in and carry out the bridge project.

(29-1-2008 The Edge)

BLand ratings unaffected by move to drop Viet project

BERJAYA Land Bhd's decision to drop a planned transportation infrastructure job in Vietnam last week did not stir concerns among analysts, who believe that the firm will be better off picking jobs that are more financially viable.The group is already occupied with five property development projects in both Hanoi and Ho Chi Minh City and they are not too worried about a single infrastructure job that did not pan out well. BLand last Friday said that it will not proceed with a plan with Tin Nghia Co Ltd, a state-owned company from the southern Dong Nai Province, on the overall development of Nhon Trach District that included its transportation network. The companies have decided to let the memorandum of understanding signed in late 2006 lapse, after a 12-month extended feasibility study done by BLand.


(29-1-2008 New Straits Times)

Call to allow full foreign ownership of REIT firms

REAL estate investment trusts (REITs) in Malaysia can grow further if complete foreign ownership of REIT management companies are allowed, said a top spokesperson for the International Real Estate Federation of Asia Pacific (FIABCI). Currently, REIT management firms are allowed up to 70 per cent foreign ownership while the minimum Bumiputera ownership requirement is 30 percent.

(29-1-2008 New Straits Times)

Sabah’s three-pronged plan

THE idea initially was confined to Sabah’s east coast, specifically Sandakan, Lahad Datu and Tawau. But it grew. Today the term “corridor” is a misnomer, as the Sabah Development Corridor (SDC) encompasses the entire state, including the interior regions and the burgeoning west coast. The SDC, which will be launched by Prime Minister Datuk Seri Abdullah Ahmad Badawi today, is a three-pronged blueprint designed by the Institute for Development Studies, Sabah, targeted primarily at agriculture, tourism and manufacturing. At the same time, its architects hope that subsidiary industries will also enjoy spin-off benefits. The SDC is a three-phase programme. Under the first leg spanning 2008-2010, the RM147mil injection into the agropolitan project, involving the planting of rubber and fish cultivation in Pulau Banggi, will redress pockets of poverty on that island.

(29-1-2008 The Star)

Sri Kembangan project to drive LBI Capital

SHAH ALAM: LBI Capital expects its commercial development in Sri Kembangan to be its main revenue contributor for the financial year ending Dec 31, 2008.Managing director Datuk Jeffrey Ng Chin Heng expressed confidence in the project comprising 100 units of two- and three- storey shoplots in Taman Pinggiran Putra in Sri Kembangan, which have a gross development value (GDV) of RM80mil. This project has been well received and has achieved 85% take-up since it was launched at the end of last year,? he said after the company EGM yesterday. Ng said the company planned to launch by year-end an industrial park on 36 acres in Puchong Perdana with a potential GDV of RM70mil.

(29-1-2008 The Star)

Morubina pushes Kinta Riverfront to Chinese real estate investors


HEFEI: Developer Morubina Sdn Bhd is looking to China to attract investors for its latest project, Kinta Riverfront. On the Kinta Riverfront project, Ting said sales had been swift with some 60% snapped up, valued at a total RM45.5mil. Work on the project had been completed 30% and was due for completion by 2009. The RM80mil 20-storey Kinta Riverfront Hotel and Service Suites project offers 239 units priced between RM199,999 and RM2.9mil each.


(28-1-2008 The Star)