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Saturday, February 16, 2008

Property Nuggets

More Office Tower at KL Sentral
Development continues apace at the Klang Valley's transportation hub. The latest involves the acquisition of a 1.85 acre plot in Kuala Lumpur Sentral for RM133 million (or RM1,647 psf) by a joint-venture company, Cozy Bonanza Sdn Bhd.
Axis-REIT expands portfolio
Axis REIT has ventured out of its comfort zone in the Klang Valley by acquiring two leasehold industrial buildings in Pasir Gudang, Johor Bahru
Tower-REIT
A significant improvement in nett income for the financial year ended Dec 31, 2007 has led Tower Real Estate Investment Trust (Tower-REIT) to declare a higher distribution per unit (DPU).
IDR to roll out more projects
As consequence, land prices in IDR have continued to rise, with Ghani saying a consortium comprising UEM Land Bhd and Dubai's Limitless Holdings recently bought 111 acres in Puteri Harbour for RM50 psf.

(New Straits Times 16-2-2008)

Big jump in revenue from sales at property unit

KUALA LUMPUR: UEM Land Sdn Bhd, which will be listed in September should the restructuring exercise it will undergo soon pass through smoothly, has a lot of work in hand. It is the master developer of the 24,000-acre Bandar Nusajaya located in Gelang Patah in southwestern Johor. Bandar Nusajaya is also in the heart of the Iskandar Development Region (IDR) and UEM Land is currently developing 11,000 acres of the land. According to UEM Land managing director Wan Abdullah Wan Ibrahim at a media briefing yesterday, the company has seen substantial improvement in revenue from sales of residential units, industrial plots and sale of land to other developers for co-development purposes. “Our growth strategy is to create a nucleus for the IDR via seven catalyst development projects. Read more
(The Star 16-2-2008)

UEM Land listing in September

KUALA LUMPUR: UEM Land Sdn Bhd, the property development subsidiary of UEM Group Bhd, will be listed in September in a restructuring exercise worth between RM2bil and RM3bil, while UEM World Bhd, the listed investment holding company of the group, will eventually be delisted. UEM Group has a 51.9% stake in UEM World and 28.5% stake in UEM Land. The restructuring exercise would involve the non-renounceable restricted offer for sale (ROS) of UEM World’s shares in four listed subsidiaries to its (UEM World’s) shareholders. The company’s stakes in the four listed subsidiaries are Pharmaniaga Bhd (72.5%), Opus Group Bhd (62.2%), UEM Builders Bhd (51.7%) and Cement Industries of Malaysia Bhd (CIMA, 50.7%). Read more
(The Star 16-2-2008)

RCSB, CCSB to start development in IDR

KUALA LUMPUR: Work is to begin soon on the Iskandar Development Region’s (IDR) three theme zones in Node 1, the flagship catalyst project to grow the first integrated international city there. Rim City Sdn Bhd (RCSB), the master concessionaire of Node 1, and Cultural Cluster Sdn Bhd (CCSB) have jointly announced that the definitive agreement is now effective. RCSB is a subsidiary of South Johor Investment Corp Bhd while CCSB is special purpose development vehicle majority owned by Al-Nibras 2 Ltd, a Labuan-based private fund company managed by Kuwait Finance House (Labuan) Bhd, which is in turn a wholly-owned subsidiary of Kuwait Finance House (M) Bhd. – Bernama
(The Star 16-2-2008)

E&O to build RM1bil investment portfolio

KUALA LUMPUR: Eastern & Oriental Bhd (E&O) intends to build RM1bil worth of property investment portfolio in the next five years, now that the proposed merger with listed property arm E&O Property Development Bhd (E&O Prop) has got the go-ahead from shareholders. Three years ago, E&O attempted to take E&O Prop private by making a voluntary general offer but the deal fell through because the latter’s minority shareholders voted against it at an EGM.
This time, the proposal received a huge approval of 99.9% in terms of shareholding value, and 80 positive votes from 86 shareholders during the court-convened meeting by E&O Prop yesterday. Read more
(The Star 16-2-2008)

SP Setia sees revenue rise

PENANG: SP Setia Bhd expects to generate about RM1.8bil in sales revenue from new and existing property projects in the country and overseas in the financial year ending Oct 31. Speaking at a press conference during the company’s Chinese New Year celebration here, group managing director and chief executive officer Tan Sri Liew Kee Sin said new property launches in Vietnam were expected to rake in sales of RM300mil to RM400mil. Read more
(The Star 16-2-2008)

Sunway City plans 3 more office towers

PROPERTY developer Sunway City Bhd plans to add three more office towers within the Sunway Lagoon Resort this year, managing director of property investment Ngeow Voon Yean said yesterday. However, the firm has not yet confirmed the cost for the new properties."The office towers are expected to be completed in two years," he said.
(New Straits Times 16-2-2008)

Sabah to set up one-stop investment authority

SABAH will set up a one-stop investment authority called the Sabah Economic Development Investment Authority (Sedia) to facilitate investments in the state.Executive director of Institute for Development Studies in Sabah, Datuk Dr Mohd Yaakub Johari said Sedia will be governed by a board of directors comprising the prime minister and the Sabah chief minister as co-chairmen."It will operate in line with best practices of corporate governance recognised globally and run by a pool of top-notch management talent."Sedia will ensure that investors in the identified high priority sectors have one point of contact to obtain the necessary approvals, licences and available incentives for set-ups," he said. Read more
(New Straits Times 16-2-2008)

SP Setia eyes RM400m sales from Vietnam project

The 'EcoLakes' project, with a gross development value of RM2.5 billion, will showcase Malaysian expertise in the property development sector in Vietnam. PROPERTY developer SP Setia Bhd is targeting between RM300 million and RM400 million in sales of properties at its soon-to-be-launched 'EcoLakes' project in Vietnam.Its group managing director and chief executive officer Tan Sri Liew Kee Sin said the company, which has obtained the necessary approvals to launch the project in April this year, will use the project to showcase Malaysian expertise in the property development sector in Vietnam.The 200ha integrated development, which carries a gross development value of RM2.5 billion, is located in Ho Chi Minh City."We will ensure that this maiden project of ours in Vietnam carries the same high standards executed in Malaysia as we brand ourselves as one of the best developers in that country," he told reporters during a Chinese New Year gathering in Penang yesterday. Read more
(New Straits Times 16-2-2008)

Property to be enlarged E&O revenue driver

Shareholders have voted in favour of the E&O Property Development Bhd-E&O Bhd merger, which is expected to be completed by the middle of this year PROPERTY development will continue to be the core driver of the soon-to-be-enlarged Eastern & Oriental (E&O) group, with over RM4 billion projects to be launched within the next three years.Managing director Datuk Terry Tham said in five years, property development would account for 60 per cent of the group's earnings, while property investment and hospitality/lifestyle business would equally contribute 20 per cent each."Our property investment division will allow us to maintain prime commercial assets worth RM1 billion over the next five years," he said, adding that this will provide the group with recurring income and capital appreciation. Read more
(New Straits Times 16-2-2008)

Analysts mixed on UEM World restructuring

An analyst says the move is minimal value-enhancing, while another says it's good for shareholders to have that focus as it is changing into a pure-play property developer. ANALYSTS were mixed in their opinions as to whether the proposed restructuring of UEM World Bhd would be good for all its shareholders.Most liked the fact that the deal allows investors to have direct exposure to the group's biggest asset, the soon-to-be-listed UEM Land, master developer of the Iskandar Development Region in Johor.UEM Land is 71.5 per cent owned by UEM World."It's changing from a conglomerate to a pure-play property development company. It's good for shareholders to have that focus," said an analyst from Hwang-DBS Vickers Research. Read more
(New Straits Times 16-2-2008)

UEM World revamps

Many investors in UEM World are mainly interested in UEM Land and this exercise will allow them to participate in a pure property firm, says UEM World managing director. UEM World Bhd plans to become a pure property company by spinning off its cement and drug-making businesses in a sale to its shareholders.UEM Land Sdn Bhd, its property unit that's overseeing Malaysia's biggest property project in Johor, will be listed while UEM World will be de-listed under its latest restructuring exercise."The exercise is carried out to provide the platform for further growth of our business. UEM Land in recent periods has increasingly become the driver for the share price of UEM World," UEM World managing director Datuk Ahmad Pardas Senin said in a media briefing in Kuala Lumpur yesterday.Read more
(New Straits Times 16-2-2008)