Bayu Melati, PKNS in venture to develop land

MELATI Ehsan Holdings Bhd’s wholly-owned unit Bayu Melati Sdn Bhd has sealed a joint venture agreement with PKNS Holdings Sdn Bhd to develop three parcels of land in Kelana Jaya, Selangor, into a mixed commercial development worth RM1.62 billion.

The proposed development will feature serviced apartments, office towers, Soho offices, a sports complex, mall, hotel and a performing arts centre.

By Business Times

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Setia Indah to acquire 106ha in Johor Baru

SP SETIA Bhd’s wholly-owned unit Setia Indah Sdn Bhd has entered into a conditional sale and purchase agreement with Kenyalang Property Development Sdn Bhd to buy 106ha in Johor Baru, Johor, for RM125.8 million.

It told Bursa Malaysia yesterday that it intends to develop a mixed residential development project on the land.

By Business Times

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SP Setia buys land for RM126m

SP Setia Bhd, which has established a strong foothold in Johor, continues to expand its landbank in the state by acquiring a land from Kenyalang Property Development Sdn Bhd for RM125.8 million.

In a filing to Bursa Malaysia today, SP Setia said its subsidiary, Setia Indah Sdn Bhd, had entered into an agreement with Kenyalang for the acquisition, which is expected to conclude during the financial year ending Oct 31, 2011.

It plans to develop a mixed residential development project on the land, located in the Tebrau corridor.

Currently, it is developing four on-going project within the corridor, namely Bukit Indah Johor, Setia Indah Johor, Setia Tropika and Setia Eco Gardens.

SP Setia said the proposed acquisition was in line with its strategy to strengthen its presence in the state while taking advantage of the exciting happenings in the Iskandar region.
It is also expected to contribute positively to the future earnings and cash flow of the group.

By Bernama

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Equine unit calls off land purchase deal

EQUINE Capital Bhd’s wholly-owned unit Taman Equine (M) Sdn Bhd has scrapped a deal to buy a parcel of land in Selangor from Jelang Puncak Sdn Bhd for RM47.4 million.

The two companies will instead sign a joint development agreement (JDA) to build shop offices worth RM198.1 million on the land, Equine said in a filing to Bursa Malaysia yesterday.

By Business Times

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Tambun Indah unit buys land in Penang

TAMBUN Indah Land Bhd's wholly-owned unit, Epiland Properties Sdn Bhd is buying two parcels of land in Butterworth, Penang from Hussain Imam Md Ismail and Ayesha Mohamed Ismail for RM11 million.

The deal is in line with its strategy to increase its land bank.

By Business Times

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At RM77mil for 200 acres leasehold land in Puchong, analysts say it’s a steal

PETALING JAYA: Glomac Bhd's proposed acquisition of leasehold land in Puchong from Score Option Sdn Bhd (SOSB) will be advantageous to the property developer for its attractive price and strategic location, analysts said.

At RM77mil for 200 acres, the effective cost of the land worked out to be RM8.84 per sq ft, which was significantly lower than the range of transacted or asking prices of RM32 to RM48 psf in Puchong.

“The purchase price is deemed cheap,” TA Research said in its report.

Located near the established commercial hub of the town with the IOI Mall and Tesco Store in the vicinity, it is basically an extension to Glomac's present development, called the Lakeside Residences in Puchong.

“Glomac can now strategise any land enhancement activities to improve the value of its enlarged landbank,” TA Research said.

The Lakeside Residences is a joint-venture development between Glomac and SOSB on a 90-acre land to be acquired.

The project, comprising 537 units of double-storey terraced houses and 100 units of semi-detached houses, was launched in 2005 with a total gross development value (GDV) of RM250mil.

“What's positive is that property prices have increased significantly since the launch of the first phase of Lakeside Residence,” ECM Libra said in its report, comparing the initial launch price of about RM300,000 per unit in 2005 for terraced houses versus the current asking price of about RM440,000.

Puchong is one of the property hot spots in the Klang Valley, as the area is easily accessible via Lebuhraya Damansara-Puchong, the Shah Alam Expressway as well as the Bukit Jalil highway.

With the land acquisition, Glomac's future earnings capability would be enhanced, as the property developer could now extend its presence in Puchong and gain from the fast-growing property market there, analysts said.

“The acquisition would be accretive to the company's net asset value (NAV) and earnings,” AmResearch said in a recent report.

On average, some analysts were looking at a potential increase of 25% for the company's NAV and more than 20% in the company's earnings in the financial year ending April 30, 2013.

However, Glomac had yet to reveal details such as the GDV and timeline for its “enlarged” Puchong project. Following the proposed land acquisition, Glomac's existing masterplan for the area would likely undergo significant amendment, according to some analysts.

Analysts in general viewed Glomac favourably for its strong earnings visibility with unbilled sales of almost RM600mil.

They also expect further news flow on land acquisition by the company as part of its aggressive expansion plan.

Glomac reported a net profit increase of 71% year-on-year (yoy) to RM15.88mil for the second quarter ended Oct 31, 2010 on revenue of RM140.89mil, which represented an increase of 86% yoy.

Over the next 12 months, the company would be launching projects valued in excess of RM1bil. These include a RM250mil apartment project in Mutiara Damansara, a RM145mil retail mall in Glomac Damansara and the RM400mil Glomac Utama mixed development in Petaling Jaya.

By The Star

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Glomac buys land

GLOMAC’s wholly-owned unit, Glomac Alliance Sdn Bhd, has sealed a sale-and-purchase agreement with Score Option Sdn Bhd to buy 80ha of leasehold land in Puchong, Selangor, for RM77 million.

In a filing to Bursa Malaysia yesterday, Glomac said the acquisition was in line with its core strategy to buy suitable land in Klang Valley with strong potential for a prime new development.

By Business Times

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GUH seeks more land for property projects

WHILE GUH Holdings Bhd continues to look at its printed circuit board (PCB) division as the primary driver of growth this year and in years to come, the firm continues to expand its landbank for other activities.

Managing director Datuk Kenneth H'ng Bak Tee said for its PCB business, the company will move into niche, better pricing and future trend products such as light emitting diode (LED)-based special tuners and power supply.

"In further restructuring our clientele base," he noted, "we are moving away from Taiwanese and Chinese clients who are generally known for their low pricing and being bad paymasters."

While South Korean clients are basically associated with average pricing and are good paymasters, H'ng said the focus would be more on Japanese, the US and European clients who are known for not only good pricing, but also for being good paymasters.
On the property development side, GUH is looking at acquiring land in the Klang Valley, Penang island and upcoming spots in Seberang Prai.

He said GUH's Taman Bukit Kepayang development in Seremban, has so far seen development of 120 hectares and there was a balance of about 108 ha left to be developed over the next six to seven years.

"We want to maintain our current build-and-sell strategy for residential and commercial development," he added.

On GUH's plantation activities, H'ng said the 154 ha of plantation land in Kedah, acquired as a testing ground, had proven to be very successful and boasted industry-standard yields.

"We are now looking to increase the estate size to between 1,200 ha and 2,000 ha in order to achieve meaningful economics of scale," he added.

By Business Times

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Bina Puri unit buys land in KK for RM4.5m

KUALA LUMPUR: Bina Puri Holdings Bhd said its wholly owned subsidiary, Bina Puri Properties Sdn Bhd has acquired a parcel of land in Kota Kinabalu, Sabah of about 1.95 acres for RM4.5mil.

Group managing director Tan Sri Tee Hock Seng said in a statement yesterday that the land would be developed into a serviced residence, with an estimated gross development value of about RM60mil.

The land will be used for the development of one block of service apartments consisting 100 units with sizes ranging from 1,500 sq ft to 4,500 sq ft.

The land will be developed into a serviced residence, with an estimated gross development value of about RM60mil.

By The Star

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GSB to sell land, hotel for RM22mil

KUALA LUMPUR: GSB Group Bhd's unit, Serta Usaha Sdn Bhd (SUSB), has entered into a conditional sale and purchase agreement with Leopad Holdings Sdn Bhd to sell its property, comprising land and a 13-storey hotel, for RM22mil cash.

The property is situated in Jalan Kapar, off Jalan Syed Putra, in Kuala Lumpur.

GSB, in a filing to Bursa Malaysia yesterday, said the proposed sale is expected to be completed within eight months from the date of the agreement.

By The Star

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Bolton eyeing 44ha site in Penang

PROPERTY developer Bolton Bhd is looking to expand its landbank in Penang with a potential acquisition in Teluk Kumbar this year.

Bolton executive chairman Datuk Azman Yahya yesterday said it was hopeful to conclude the proposed acquisition of the 44ha site within two to three months.

The land on the south-western end of Penang island is estimated to cost Bolton RM150 million, Azman added.

"Our maiden project in Penang - Surin, has been encouraging and we are now looking at expanding our landbank on the island via acquisitions and joint ventures," he told reporters after a topping out ceremony for the Surin Tower B project located in Tanjung Bungah.
Surin is a two-block 28-storey luxury condominium project which is built on a freehold parcel of elevated land and carries a development value of RM199 million.

Of the project's 390 units, about 77 per cent had already been sold out and about 30 per cent to 35 per cent of the buyers were foreign, Azman said.

The units, which were sold at prices ranging from RM345,998 to RM1.2 million, offer amenities such as an infinity pool, rooftop garden, two covered carpark bays per unit, three tier security, a barbeque area and sky decks.

On the planned purchase of the Teluk Kumbar land, Azman said Bolton was looking at building landed property units, along with apartments in a gated community.

"Our target investors for this proposed project would be locals," he added, saying that Bolton remains on the lookout to buy land in Tanjung Bungah.

"We remain convinced of Penang's vibrancy and growth prospects and we are actively looking for development opportunities.

"The residential market remains buoyant and this is a segment which we want to focus on," Azman said.

In the Klang Valley, he said the company will soon unveil a block of luxury serviced residences at Jalan Bukit Ceylon, an exclusive gated community in Ukay Perdana, and the 51 Gurney development.

The latter project is touted as Malaysia's first and only super luxurious condominium which comes complete with spacious driveway on every floor and a car park within every unit.

By Business Times

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Land re-pricing to boost UEM Land, Tebrau

UEM Land Bhd, Tebrau Teguh Bhd and Mulpha International Bhd are among Malaysian property companies that will benefit from a “re-pricing” of the land and property values in the southern Johor state, according to RHB Research Institute Sdn Bhd.

“The re-rating of the Johor property play started following the negotiation of the land swap deal between Singapore and Malaysia,” RHB said.

“The re-rating process was further accelerated by the introduction of the Government’s economic transformation program.”

By Bloomberg

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Sunway unit wins S’pore land deal

KUALA LUMPUR: Sunway Holdings Bhd, via indirect subsidiary Sunway Developments Pte Ltd (SDPL), has been awarded a tender to jointly develop a parcel of land at Yuan Ching Road, Singapore, for a 103-year lease term at S$131.6mil (RM314.91mil).

SDPL, a wholly-owned subsidiary of Sunway Construction Sdn Bhd which in turn is a wholly-owned subsidiary of Sunway Holdings, will be jointly developing the land with Hoi Hup Realty Pte Ltd and SC Wong Holdings Pte Ltd.

“Hoi Hup, SDPL and SC Wong Holdings intend to incorporate a joint venture on a 60:30:10 basis to undertake the development of the land,” Sunway Holdings told Bursa Malaysia yesterday.

The tender was awarded by the Housing and Development Board of Singapore, it said.

Hoi Hup, incorporated in Singapore, has a paid-up capital of S$3mil and is involved in real estate development. SC Wong Holdings, which is also incorporated in Singapore, has a paid-up capital of S$15mil and is principally involved in investment holding.

“The completion period of the proposed project shall be 48 months or earlier, commencing from January 10, 2011 and would contribute positively to the earnings of Sunway Group for the financial year ending Dec 31, 2012 onwards,” Sunway Holdings said.

In a separate statement, Sunway Holdings said SunCon had secured a banking facility amounting to US$15mil (RM46.35mil) for the issuance of tender bonds, performance bonds and advance payment bonds for current contracts and future contracts to be secured by the latter.

SunCon is principally involved in turnkey, construction related design and build, civil engineering and building works.

By The Star

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Mammoth Empire buyer of Damansara Perdana land

The Mammoth Empire Group was the recent buyer of two pieces of land in Damansara Perdana, Selangor, from MK Land Holdings Bhd.

It is learnt that Datuk Sean Y.T. Ng, founder of the Empire Group, had made the offer via Foster Estate Sdn Bhd.



This is the fourth piece of land the Empire Group is buying from MK Land.

MK Land announced on January 4 that Foster Estate plans to buy two pieces of land in Damansara Perdana, comprising 7.4ha and 3.3ha for RM100.8 million and RM29.2 million respectively.

According to Mammoth Empire group executive director Danny J.Y.Cheah, Foster Estate aims to set up an integrated property development, comprising commercial and residential towers, and retail.

"There is a lot of synergy in Damansara Perdana. We already have three developments. If we do not buy it, MK Land would sell it to other developers.

"There is a lot of economies of scale for us to do another project in Damansara Perdana," Cheah told Business Times.

The group's current projects in Damansara Perdana includes Empire City, an integrated lifestyle commercial development on a 9.2ha site; Empire Damansara, a mixed development; and Empire Residence.

Empire Residence, a high-end gated and guarded development on 19.2ha of land, is a joint venture with MK Land.

Damansara Perdana sits next to the thriving Kota Damansara township and it is also close to the new planned development of the Rubber Research Institute Land in Sungai Buloh.

By Business Times

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JCorp may sell land, property to pare down debts

KUALA LUMPUR: Johor Corp (JCorp) is considering selling various assets including some landbank, properties and plantation assets to partly repay its current RM3.6bil debt which is due for repayment in July next year.

The state investment arm first plans to bring down the debt level of RM3.6bil to a “sustainable level” of between RM1bil and RM1.5bil following a debt restructuring exercise, its newly appointed president and chief executive Kamaruzzaman Abu Kassim said.

That would mean that it needs to raise at least RM2.1bil by 2012.

“About 70% (source of funding) for the RM2.1bil needed has already been identified and this includes selling some of our assets,” he said at a meeting with the media yesterday.

The group has “saleable assets” of RM2.1bil, Kamaruzzaman said, without elaborating.

JCorp's landbank and properties are largely in Johor and this includes up to RM2.5bil in commercial properties.

At at March last year, it had about 2,000ha to be developed in the Iskandar Malaysia region.

It also has major plantation and palm oil businesses in Papua New Guinea.

Kamaruzzaman said the group's remaining debt would be restructured via new loans or instruments.

JCorp has appointed CIMB Bank and Maybank Investment Bhd as advisors for the restructuring.

Both banks are also the biggest lenders to JCorp which could probably mean that both banks own the bulk of the bonds due for maturity.

According to JCorp's 2009 annual report, it has RM705mil in cash but a whopping RM6.62bil in debt and with hardly any free cash flow.

The RM3.6bil debt was due to JCorp's investment projects since 2000, “mainly in landed property and industrial areas”, it has been reported.

JCorp has been in the news in recent weeks after it rejected two bids for the takeover of its QSR Brands Bhd. One was by a company linked to tycoon Tan Sri Halim Saad and another by the Carlyle Group.

JCorp is the ultimate shareholder of the lucrative fast-food businesses of QSR and KFC Holdings (M) Bhd.

Its interests in both companies are held through its 53%-owned subsidiary Kulim (M) Bhd, which main business is in the plantation sector.

Kulim owns a 57.5% stake in QSR, which in turn, owns a 50.6% stake in KFC.

As one of the country's largest state economic development authorities, JCorp has about 250 companies under its stable from which it currently derives RM90mil in annual dividend income, Kamaruzzaman revealed.

Kamaruzzaman said yesterday there was a possibility some of these might be listed in the future. “But the proceeds will not be to repay our current debt due for maturity,” he said.

JCorp's other key assets apart from those in the recent limelight include private healthcare service provider KPJ Healthcare Bhd, property development companies Johor Land Bhd and Damansara Realty Bhd, intrapreneur venture business Sindora Bhd and the London-listed plantation company, New Britain Palm Oil Ltd (NBPO). (Kulim owns about 50% of NBPO).

NBPO is one of the world's largest producers of sustainable palm oil.

By The Star

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Tomei to sell KL land to Oasis

PETALING JAYA: Jeweller Tomei Consolidated Bhd will dispose of six pieces of land in Kuala Lumpur to Oasis Properties Sdn Bhd for a total of RM4.6mil as part of its on-going cost optimisation and business streamlining strategy,

The disposal will allow the jeweller to re-organise its resources and focus on its core business, it told Bursa Malaysia.

In six separate announcements yesterday, Tomei said several of its wholly-owned units entered into six sale and purchase agreements on Dec 27 to sell its freehold land.

By The Star

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PLUS connection in MK Land's sale of land

It was a simple land sale but MK Land Holdings Bhd's deal raised eyebrows because the buyer shares the same set of shareholders for another major deal - the RM26 billion bid to take over PLUS Expressways Bhd.

MK Land announced yesterday that little-known Foster Estate Sdn Bhd plans to buy two pieces of land in Damansara Perdana, Selangor, for a combined RM130 million.

According to the Companies Commission of Malaysia, Sumami Kiman and Saharuddin Abdullah hold one share each in the RM2 company.

These two were also the same shareholders of Jelas Ulung Sdn Bhd, which is making the bid to buy PLUS.

Jelas Ulung was also rumoured to be the vehicle for Tan Sri Halim Saad although this was denied by people close to the businessman.

Foster Estate was set up on November 4 2010 and is based in Klang. Its core activity is property investment.

According to MK Land chief operating officer Lau Shu Chuan, proceeds from the land sale will be used to carry out existing projects and new ones over two years.

The deal is due to be completed by the end of this year. In a statement to Bursa Malaysia, MK Land said it has no immediate plan to develop the land.

MK Land is selling two parcels of land in Damansara Perdana, comprising 7.4ha and 3.3ha for RM100.8 million and RM29.2 million, respectively.

The developer had bought the land in April 2000 for RM5.9 million and RM2.4 million, respectively.

Damansara Perdana sits next to the thriving Kota Damansara township and it is also close to the new planned development of the Rubber Research Institute Land in Sungai Buloh.

By Business Times

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MK Land sells land for RM130m

PETALING JAYA: MK Land Holdings Bhd is selling two plots of leasehold land in Sungai Buloh, Selangor, to Foster Estate Sdn Bhd for RM130mil cash.

It told Bursa Malaysia yesterday that it had entered into sale-and-purchase agreements with Foster Estate on Dec 30, 2010 to dispose of 18.54 acres for RM100.78mil and another 8.32 acres for RM29.21mil.

MK Land said it was disposing of the two plots to unlock their value which it had no immediate plans to develop and the proposals were expected to be completed by the end of 2011.

By The Star

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Tambun Indah to buy 3.2ha in Penang

KUALA LUMPUR: Tambun Indah Land Bhd, a leading property developer in Penang, is planning to acquire 3.2ha of land next year.

Managing director Ir Teh Kiak Seng said the group had identified 1.6ha on the mainland and another 1.6ha on Penang island with a gross development value (GDV) of approximately RM36mil and RM170mil respectively.

According to an independent market researcher, the residential property market in Penang was valued at RM3.7bil last year, and the mainland accounted for approximately 30% of Penang's residential property market.

“Mainland Penang (Seberang Perai) is one of the fastest growing districts in Penang due largely to a growing working class population as a result of rapid industrialisation,” he said during the launch of the group's initial public offering (IPO) here yesteday.

Tambun Indah is scheduled for a main-market listing on Jan 18. “We are still eyeing for landbank in the Klang Valley like in Shah Alam and Kajang but are cautious about the cost; therefore, we have not finalised anything yet.

“As we all know, Klang Valley is a good market to do housing, but we want to build our name by building quality homes at an affordable price. We, however, have no plans to expand overseas at the moment,” Teh said.

Last year, the group garnered a 10% share of the Seberang Perai residential property market.

“We expect after the IPO, our market share will increase above 10%,” he added. To date, Tambun Indah has sold more than 2,800 residential units, mostly in mainland Penang with a GDV of more than RM800mil.” Teh said the group achieved commendable financial performance over the years and had maintained a low-borrowing financial model so as not to burden the balance sheet. As at Dec 31, 2009, the group was in net cash position.

“Tambun Indah has adopted a progressive dividend policy of paying between 40% and 60% of group net profit to shareholders.

“At an IPO price of 70 sen per share, the annualised net dividend yield is (about) 7% in financial year 2010,” he said.

By Bernama

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Ibraco selling 6.5ha land in Kuching

REAL ESTATE and property developer, Ibraco Bhd, is selling a total number of 6.5ha of land in Kuching, Sarawak, to Wansa Realty Sdn Bhd for RM14.2 million.

The demand for office buildings and exhibition buildings in the subject area is expected to be limited.

The company told Bursa Malaysia Bhd that the disposal will avoid potential holding cost should Ibraco build and sell the office and exhibition buildings.

The sale consideration is about 2.7 per cent above the market value of the land.

By Business Times

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