Axis-REIT buys warehouses for RM27m

KUALA LUMPUR: Axis Real Estate Investment Trust (Axis REIT) is acquiring two warehousing properties in Pasir Gudang industrial area for RM27 million in Johor, said its manager Axis REIT Managers Bhd (ARMB). It is acquiring a single-storey detached factory with ancillary buildings from Oriental Pulse Sdn Bhd for RM12.5 million, and a single-storey warehouse building with a three-storey office plus guard house and ancillary buildings from Niro Ceramic (M) Sdn Bhd for RM14.5 million. Both properties are developed by the Johor State Economic Development Corp. The property has a gross yield of 10.26% and a triple net yield projected at 9.1%. The acquisition is yield accretive at 23 sen per unit. The second property is a sale and leaseback arrangement with Niro Ceramic (M) Sdn Bhd, which has agreed to lease it for six years at a monthly rental of RM130,000 for the first three years with a step-up in rental on the second three years. It has an option to renew the lease for an additional six years. The property has a gross yield of 10.55% and a triple net yield projected at 9.77%. The yield is 345 sen per unit.

(01-02-2008 The Edge)

SC relaxes minimum landbank rule

Property development companies seeking listing are no longer required to have a minimum landbank of 500 acres (202 ha) under the Securities Commission’s (SC) latest equity guidelines, which come into effect today. The SC said the new and revised guidelines were part of its efforts to create a more competitive capital market environment through the liberalisation of fund-raising requirements and raising standards of advisory and due diligence conduct by market intermediaries. It said these guidelines, which take effect today, were related to the liberalisation policies announced by SC chairman Datuk Zarinah Anwar on Dec 12 last year to facilitate corporate expansion and boost the attractiveness of Malaysia as a preferred listing destination.

(01-02-2008 The Edge)

The Pavilion attracted 5m visitors in just 3 months

KUALA LUMPUR: The Pavilion Kuala Lumpur, which opened to the public last September, has already attracted a total of five million visitors in the last three months of 2007, its director for centre management John Sironic said. The Pavilion is owned by Urusharta Cemerlang Sdn Bhd, which roped in Kuwait Finance House and Qatar Investment Authority as partners for the project, and managed by Kuala Lumpur Pavilion Sdn Bhd. The RM3 billion Pavilion sits on a 5ha site in Jalan Bukit Bintang and has a total gross built-up area of 3.68 million sq ft, and a total net lettable retail area of 1.37 million sq ft. The shopping mall has seven retail floors and 450 units of shop. Currently, 60% of these shops are fashion outlets, 21% food and beverages and the remaining 19% catering for urban leisure. It also has three levels of basement parking with 2,500 bays. Besides the luxury mall, The Pavilion development project also comprises 368 residential units, a 19-storey office block and a hotel upon full completion.

(01-02-2008 The Edge)

Relocation for 13 Chinese schools

KUALA LUMPUR: The Education Ministry has approved the relocation of 13 Chinese schools to densely-populated areas in the Klang Valley and Johor. Plans are also under way for six new Chinese schools to be built in Wangsa Maju, Sungai Long, Kajang, Bukit Serdang, Rawang and Danga Bay. For example, nearly 1,700 Chinese students in Sungai Long had to travel to schools in Cheras and Balakong, causing inconvenience to their parents.

(01-02-2008 New Straits Times)

RM200m resort for Belum forest

IPOH: A RM200 million six-star resort will be built on Pulau Besar, right in the heart of the world-famous Belum forest. The resort will be built on a 2,000ha site. The state government had given the land to Belum Island Resorts Sdn Bhd, a subsidiary of the CRSC Group, to develop it into an eco-tourism attraction and island resort. The project is divided into four phases. It will kick off with the construction of a RM60 million hotel covering an area of 400ha. The resort will be jointly built by Belum Island Resorts Sdn Bhd and world-renowned resort operator, Aman Resorts. The Belum Valley houses 274 species of birds, including the plain pouched hornbills, 14 globally threatened mammals, including the Malayan tigers and tapirs, Sumatran rhinoceros, Asiatic elephants and white gibbons.

(01-02-2008 New Straits Times)

Ministry may amend Act to include fire-fighting squads

KUALA LUMPUR: The Housing and Local Government Ministry is studying whether to include voluntary fire-fighting squads in the Fire Services Act, said its minister Datuk Seri Ong Ka Ting. He said the ministry intended to amend the Act so that the operations of the squads, now registered under the Registrar of Societies, could be better coordinated.

(01-02-2008 The Star)

CRSC, Aman Resorts plan RM200mil Belum resort

IPOH: The CRSC group and Aman Resorts International are investing a total of RM200mil to develop an eco-tourism and island resort on Pulau Besar in Tasik Temenggor, Belum forest reserve. Aman Resorts executive director Greg Sirois said the investment, to be spread over four phases, would include the construction of a RM60mil six-star hotel. The hotel is due for completion next year. Aman Resorts owns and manages 18 small luxury resorts worldwide.

(01-02-2008 The Star)

The Mutiara Damansara dilemma

MUTIARA Damansara residents are furious about a restaurant on PJU 7/7A that sets up tables and chairs along the walkway across the road opposite it. According to PJU7 resident Adam Tham, residents have to put up with the noise as the Medan Selera Idaman restaurant’s outdoor eating place gets crowded during the nights, until about 2am. Besides the noise, the large number of customers frequenting the restaurant also causes congestion in the area because they park their cars indiscriminately. This is posing a problem because the restaurant is located next to the only entrance to the Surian condominiums. According to a condominium resident, who asked not to be named, there were times when he could not even get home because there were cars blocking the entrance. According to MBPJ public relations director Haniza Abdul Hamid, from Jan 1 to Jan 20 alone, 11 compounds of RM250 each has been issued to the restaurant under Section 46 (1)(D) of the Road, Drain and Building Act for placing trade-related items in a public place.

(01-02-2008 The Star)

KLSE-Company Announcement:Proposed Acquisition Of A Leasehold Industrial Property From Oriental Pulse Sdn Bhd For RM12.50 Million

Proposed Acquisition By Axis Real Estate Investment Trust (“Axis-REIT” or the “Fund”) of a leasehold industrial property comprising a single storey detached factory, with ancillary buildings with an approximate built-up area of 12,145.24 sq. metres erected on land held under H.S.(D) 437877 for PTD 190745 in the Mukim of Plentong, Daerah of Johor Bahru, State of Johor measuring approximately 20,240.226 sq. metres (the “Property”) which 60 years’ leasehold tenure will be expiring on 23 January 2067 from Oriental Pulse Sdn Bhd (No. 627687-X) for a total lump sum cash consideration of RM 12.5 Million (“Proposed Acquisition of the Property”)

(31-1-2008 KLSE)

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)