KLSE-Company Announcement:Proposed Acquisition & Leaseback Of A Leasehold Industrial Property From Niro Ceramic (M) Sdn Bhd For RM14.50 Million

Proposed Acquisition by Axis Real Estate Investment Trust (“Axis-REIT” or the “Fund”) of a leasehold industrial property comprising a single storey warehouse building with a 3-storey office together with guard house and ancillary buildings with a gross built-up area of approximately 171,000 sq.feet held under Title No. H.S.(D) 330804 PTD 163163 in the Mukim of Plentong District of Johor Bahru, State of Johor measuring approximately 2.4305 hectares (the “Property”) which 60 years’ leasehold tenure will be expiring on 29 March 2051, from Niro Ceramic (M) Sdn Bhd (No. 169869-M) for a total lump sum cash consideration of RM 14.5 Million (“Proposed Acquisition of the Property”) & lease back to Niro Ceramic (M) Sdn Bhd (“Proposed Acquisition & Lease Back of the Property”).

(31-1-2008 KLSE)

KLSE-Company Announcement:Tower Real Estate Investment Trust ("Tower REIT")

GLM REIT Management Sdn Bhd, the Manager of Tower REIT, announces that the unaudited net income for the year ended 31 December 2007 of RM106.2 million has exceeded the forecast results of RM19.3 million as disclosed in the Circular, by 449%. The net income for the year of RM23.8 million exceeded the forecast results of RM19.3 million as disclosed in the Circular, by 23%. This variance was mainly due to the following:-

(i) Total revenue increased by RM1.1 million due to the higher than expected property revenue resulting from the higher occupancy and rental rates of Menara HLA and HP Towers; (ii) Property operating expenses were lower than the forecast by RM1.9 million as a result of efficient cost controls and higher recoverable costs from the tenants; and(iii) Borrowing cost was lower than forecast by RM1.2 million due to the lower than expected borrowing interest rate.Please refer to the attached income statement for comparison of the unaudited results against the forecast, showing the variances.

(31-1-2008 KLSE)

4th HSL store in Sarawak

KUCHING: Hock Sin Leong Group Bhd recently opened its third HSL outlet here in line with its expansion plans into east Malaysia. Located at The Spring shopping mall, the outlet under the Circuit City brand is HSL’s fourth and largest in Sarawak to date. Group chairman Lee Keok Hooi said investment for the new outlet amounted to RM3mil. HSL opened its first Sarawak store at Queen’s Court here three years ago and also has outlets in Satok here and in Miri.

(31-1-2008 The Star)

Suria Capital looks for strategic partner

PETALING JAYA: Suria Capital Holdings Bhd has mapped out plans to reap the economic benefits of the Sabah Development Corridor (SDC) by expanding and developing its Sapangar Bay port into a transhipment hub for the Brunei-Indonesia-Malaysia-Philippines East Asean Growth Area (BIMP-EAGA). In addition, the expansion of palm oil downstream activities in the state would also lead to an increase in businesses. Suria Capital's subsidiary, Sabah Ports Sdn Bhd (SPSB), operates eight ports in Sabah. Sapangar Bay Container Terminal, which started operations in July last year, is the newest port in its stable. The throughput volume in Sapangar Bay terminal was about 280,000 TEUs (20-foot equivalent unit) during its first six months of operation, of which 90% was local.

(31-1-2008 The Star)

Residents of Sri Bukit Persekutuan say no to new development

RESIDENTS of Sri Bukit Persekutuan are all up in arms to fight against the new development in the adjacent area.The residents and owners of Sri Bukit Persekutuan have come up together to oppose the proposed change in land usage and the proposed development of Lot 55 plot A, section 70 on Jalan Travers. The 2.5ha land located between the Caltex Petrol Station and Jalan Travers Police Station, is currently still a green area and categorized under institution use. The land belongs to the government.It is learnt that a proposal has been submitted to construct two 30-storey towers and one-16-storey tower on top of a common 5-storey podium block in return for building a new 3-storey police station and a 9-storey police quarters on 0.6ha of the piece of land.

(31-1-2008 The Star)

More embassies at Putrajaya

THE recent opening of the KL-Putrajaya Highway would bode well for foreign missions planning to establish base in the federal administrative capital.The Putrajaya Diplomatic Precinct in Precinct 15 covers an area of 83.7ha. The main development component is the 61 lots of embassy land offered for sale to foreign missions with basic infrastructure.Bangladesh has paid for the purchase of Lots B20 and C15 with a total land area of 9, 373 sq m. Khairuzzaman said land-clearing works would commence after the paperwork was settled.The Iraq Embassy has been given the go ahead to commence earthworks following the approval of its building plans. Other foreign missions are biding their time, pending negotiation of the agreement or seeking final approval from their home countries.The list includes the Philippines, Egypt, Algeria, United Arab Emirates, Turkey, Senegal and Kuwait Embassies as well as the Brunei, Pakistan, Sri Lanka, Ghana and Kenya High Commissions.

(31-1-2008 The Star)

MRCB in venture to buy land for RM133m

MALAYSIAN Resources Corp Bhd (MRCB), together with its joint-venture company Quill Sentral Sdn Bhd and Kuwait Finance House (KFH) has bought land in Lot B KL Sentral for RM133 million. Measuring 7,503 sq m, the joint-venture group plans to develop office towers on the land. The towers will have a total gross floor area of 1.4 million sq ft. KFH is participating as a financier.

(31-1-2008 New Straits Times)

Hotel industry gets timely shot in the arm

SETTING up a hotel is now a breeze - no more requirements for multiple permits and licences, not to mention the single day it now takes to register the business with the Companies Commission of Malaysia.Thanks to the Special Task Force to Facilitate Business, otherwise known as PEMUDAH, a 23-member task force set up by the government on February 7 this year that puts senior public and private officials together to untangle red tape and help smoothen the public delivery system.Ivo R Nekvapil, vice-president of the Malaysian Association of Hotels, said that the establishment of a one-stop centre where setting up a hotel in the country now requires only one licence instead of the usual 15 licences and permits, will enable the local hotel industry to be more competitive in the region.

(31-1-2008 The Star)

Mah Sing's en bloc buyer obtains FIC approval

KUALA LUMPUR: Mah Sing Group Bhd has been notified that the buyer of its proposed en bloc sales, Prompt Symphony Sdn Bhd, had obtained approval from the Foreign Investment Committee (FIC). In a statement yesterday, it said that the sales would be for the East Wing of The Icon at Tun Razak for RM237.09 million cash and The Icon at Mont Kiara for another RM285.38 million cash.

(31-1-2008 The Edge)

Ramajuta to inject property business into Mangium

KUALA LUMPUR: Mangium Industries Bhd, a timber products maker, plans to acquire a company which jointly developed the RM1 billion 1Borneo mixed development in Kota Kinabalu, Sabah from Sabah-based Ramajuta Properties Sdn Bhd for RM240 million. Mangium and Ramajuta had on Tuesday signed a memorandum of understanding to start talks for a definitive agreement, Mangium told Bursa Malaysia yesterday. Meanwhile, Ramajuta executive chairman and managing director Raymond Chan said the company’s planned entry into Mangium is an opportunity to expand the latter’s business via the injection of real estate activities.

(31-1-2008 The Edge)

Exciting times ahead for tourism sector

Sabah’s tourism industry, which has been identified as a key driver for the state’s development, can look forward to exciting times. In line with the Sabah state government’s aim to make every year a “Visit Sabah Year”, the Sabah Development Corridor (SDC) masterplan has incorporated three developmental phases, designed to transform Sabah into one of the most liveable places in Asia by 2025. In Phase One, the blueprint will focus on addressing the basics to support tourism development and lay foundations for its future growth. Phase Two will see Sabah strengthen its position as a premier eco-adventure destination via conservation and sustainable development of new tourism products, which will be anchored by signature resorts. Lastly, Phase Three will turn Sabah into a bustling metropolis within a tropical paradise.

(The Sun 30-1-08)

YNH Property rebounded

THE overnight rebound of 176.72 points on the Wall Street coupled with the better performances on the regional stock markets sent Bursa Malaysia rebounding higher yesterday. Its overall advancing counters out-paced its declining counters by 463 to 301. YNH Property Bhd staged a technical rebound yesterday. Its daily price trend closed at RM2.70, giving a day-on-day gain of 4 sen, or 1.50 per cent. Chartwise, YNH Property's daily price trend fell from its intra-day high of RM2.90 on January 15 all the way down to its intra-day low of RM2.60 on January 22, posting a total loss of 30 sen, or 10.34 per cent. Its daily price trend continued to trend above its intermediate-term uptrend (B1:B2). However, its short-term price trend is attempting to stage a re-test of the support of its uptrend support (B1:B2).YNH Property's daily price trend is likely to stage a re-test of its uptrend support (B1:B2). Further, its daily price trend will continue to consolidate further.

(30-1-2008 New Straits Times)

Boustead exercising option on two estates

PETALING JAYA: Boustead Holdings Bhd is exercising its first call option to buy back two oil palm estates totalling 3,771ha located in Tasek Glugor, Penang, and Pekan, Pahang, from Golden Crop Returns Bhd (GCRB) for at least RM110mil. The two estates were part of a sale and leaseback agreement between Boustead and GCRB in which the former had sold and subsequently leased back the estates for up to three, five and seven years. The exercise was to facilitate the securitisation transaction involving the issuance of RM442mil Sukuk al-Ijarah by GCRB and an RM300mil Musyarakah facility obtained from Lembaga Tabung Angkatan Tentera. To improve the performance of the fund, chairman of Boustead REIT Managers Sdn Bhd Tan Sri Lodin Wok Kamaruddin said in a statement a combination of strategies - existing plantations to be managed for maximum returns and selected plantation assets will be acquired - would be adopted.

(30-1-2008 The Star)

SP Setia’s RM1b Sabah foray

PETALING JAYA: SP Setia Bhd is making its entry into Sabah with a mixed residential and commercial property project in Tanjung Aru with a gross development value (GDV) at RM1 billion. SP Setia group managing director and chief executive officer Tan Sri Liew Kee Sin said the project “gives us a crucial stepping stone to springboard the SP Setia stable of brands into Sabah and capitalise fully on the state’s anticipated economic boom”. He said the expansion into east Malaysia was part of the group’s aim to diversify its geographical concentration into other high growth states in Malaysia as well as international markets. “Aeropod @ Tg Aru will be modelled after the creative hybrid commercial projects that we have launched such as Setia Walk and Setia Nexus 1 in the Klang Valley,” he said.

(30-1-2008 The Edge)

Kota Kinabalu Waterfront development unveiled

KUALA LUMPUR: Waterfront Urban Development Sdn Bhd (WUD) has unveiled its RM500 million Kota Kinabalu City Waterfront (KKCW), an integrated mixed seafront development situated on the waterfront of Kota Kinabalu. In a statement yesterday, it said the development would be done in collaboration with the Kota Kinabalu City Council (DBKK) within the Sabah Development Corridor (SDC). Prime Minister Datuk Seri Abdullah Badawi witnessed the signing of the tripartite agreement between WUD, Kuwait Finance House (Malaysia) Bhd and a consortium of Middle Eastern and Malaysian investors.

(30-1-2008 The Edge)

Launch of corridor heralds new era for Sabah

KOTA KINABALU: A total of RM105bil in investments, 900,000 jobs, a waterfront city, tourism projects and a RM600mil new Sabah Railway terminal ? these are among the things Sabahans will get when the Sabah Development Corridor (SDC) is completed in 18 years.

Five key thrusts of the SDC, which will be to:

1. make Sabah the gateway for trade, investment and tourism in the region.
2. transform the state into a harmonious and prosperous state regardless of race or religion.
3. make the state more technology-savvy to ensure a better quality of life.
4. provide job opportunities in the state.
5. make Sabah a comfortable state to live in with good quality of life accentuated with diverse cultures, heritage and environment.

(30-1-2008 The Star)

Launch of corridor heralds new era for Sabah

KOTA KINABALU: A total of RM105bil in investments, 900,000 jobs, a waterfront city, tourism projects and a RM600mil new Sabah Railway terminal these are among the things Sabahans will get when the Sabah Development Corridor (SDC) is completed in 18 years.

Five key thrusts of the SDC, which will be to:

1. make Sabah the gateway for trade, investment and tourism in the region.
2. transform the state into a harmonious and prosperous state regardless of race or religion.
3. make the state more technology-savvy to ensure a better quality of life.
4. provide job opportunities in the state.
5. make Sabah a comfortable state to live in with good quality of life accentuated with diverse cultures, heritage and environment.

(30-1-2008 The Star)

Sabah nets 13 deals in minutes

KOTA KINABALU: One of the agreements was between the state Infrastructure Development Ministry and SP Setia Bhd for the redevelopment of the 20ha Sabah Railway terminal in Tanjung Aru near here based on the KL Sentral model utilising RM600mil under the Private Finance Initiative concept. The others included:

1. THE development and promotion of Sabah as a meeting, incentive and exhibition (MICE) destination by Yayasan Sabah, Carlota’s Borneo Holidays Sdn Bhd and East West Executive Travellers Ltd of Singapore;
2. THE setting up of a bulking facility at the Palm Oil Industry Cluster (POIC) in Lahad Datu by POIC Sabah Sdn Bhd, PMB and POIC Bulking Sdn Bhd;
3. CONSTRUCTION of the Kota Kinabalu City Waterfront Development project by the Kota Kinabalu City Hall, Waterfront Urban Development Sdn Bhd, Intonasi Sdn Bhd and Kuwait Finance House (Malaysia) Bhd; and
4. THE provision of fish-landing facilities in Tawau, Sandakan and Lahad Datu by Innoprise Corporation Sdn Bhd, Felda and WTC Marine Ventures Sdn Bhd.
The eight MoUs inked yesterday were for:
1. THE establishment of a health and medical tourism centre by Borneo Eco Healing Centre and US-based Ariana Cosmetic Surgery and Laser Centre;
2. THE construction of condominium complexes and five-star hotels by Suria Capital Holdings Bhd, IJM Bhd, Pavilion International and Glomac Bhd;
3. THE development of tourism centres, townships and an SME Park by the Sabah Economic Development Corporation (Sedco) and Longyuan Construction Group Co of China;
4. A project in the POIC by Sawit Kinabalu and Sime Darby Sdn Bhd;
5. THE production of crude Jatropha biodiesel fuel by Sabah Land Development Board, Nihon Biotec Inc of Japan, Kelana Stabil (M) Sdn Bhd, Jadora LLC and TKM Resources Sdn Bhd;
6. AN agrotourism project as well as an orang-utan rehabilitation project at Ulu Segama in Lahad Datu by the Sabah Forestry Department and Sime Darby Plantations Sdn Bhd;
7. THE development of aquaculture at Darvel Bay in Lahad Datu by the Sabah Ministry of Agriculture and Food Industry and Dubai-based Semakan Group; and
8. A proposed Jatropha curcas research and development and seeds production centre by the Sabah Land Development Board and Borneo Alam Ria Biomatrix (Sabah) Sdn Bhd.

(30-1-2008 The Star)

SP Setia in maiden Sabah venture

MALAYSIA'S most valuable property company, SP Setia Bhd, has unveiled plans for its first venture in Sabah, a RM1 billion mixed development project in Tanjung Aru. Under the agreement, SP Setia will build a transport terminal and new headquarters and ancillary buildings of Jabatan Keretapi Negeri Sabah on part of 24 hectares near the Tanjung Aru township and the Kota Kinabalu International Airport. In return, it will have the rights to develop the balance of 17ha into a mixed residential and commercial project, named Aeropod @ Tg Aru. The project will have a shopping mall, a five-star as well as a three-star hotel, and residential condominiums, among other developments.

(30-1-2008 New Straits Times)

Subang Terminal 3 refurbishment 'in the works'

SUBANG SkyPark Sdn Bhd is expected to announce next month the award of major refurbishment works to Terminal 3 of Subang airport, currently catering to Firefly and Berjaya Air passengers. Last month, the government had awarded Subang SkyPark a 59-year lease through Malaysia Airports Holdings Bhd to undertake the transformation of Terminal 3 into an ultra-modern general and corporate aviation hub. Covering 9,000 sq ft, the international standard but locally designed SkyLounge is expected to be ready by the end of March 2008.

(30-1-2008 New Straits Times)

QSR to spend RM20m on new Pizza Hut, KFC outlets

FAST food chain operator QSR Brands Bhd plans to open 20 new outlets this year to further strengthen its lead in the segment, and at the same time help boost the group's earnings for 2008. At present, its brands such as Pizza Hut commands 70 per cent of the pizza market in Malaysia while KFC Holdings Malaysia Bhd which is 43 per cent owned by QSR has over 460 quick service outlets in Malaysia, Singapore, Brunei and Cambodia. In the first nine months ended September 30 2007, QSR recorded a net profit of RM48.8 million on a revenue of RM339 million.

(30-1-2008 New Straits Times)

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)