Sapura Resources and KLCCH firms up RM1.3 billion development JV
The Edge Malaysia | Tuesday, April 22, 2014
http://www.theedgemalaysia.com/index.php?o...86085&Itemid=79

KUALA LUMPUR: Sapura Resources Bhd (SRB) will be developing a prime parcel of land along Jalan Kia Peng, Kuala Lumpur, measuring 81,863 sq ft, in a 50:50 joint venture with a unit of Petroliam Nasional Bhd (Petronas).

In a filing with Bursa Malaysia yesterday, SRB said its board had approved the proposed acquisition of a 50% stake in the joint venture entity, Impian Bebas Sdn Bhd, from KLCC (Holdings) Sdn Bhd (KLCCH) for RM108.5 million cash.

Petronas owns 100% of KLCCH, which in turn is a major shareholder of the Bursa-listed KLCC Property Holdings Bhd and also KLCC Real Estate Investment Trust.

Impian Bebas plans to develop commercial buildings on the land, including a 46-storey office tower, a three-storey convention centre, a retail podium and a seven-storey basement car park. In total, these will make up 1.64 million sq ft in gross floor area.

In the announcement, SRB said the proposed development has an estimated gross construction and development cost of about RM1.3 billion, excluding the value of the land.  It added that the project will be financed through a combination of bank borrowings secured by Impian Bebas, as well as funds contributed by SRB and KLCCH based on the equity interest each holds.

The proposed development has an estimated development period of five years, and is expected to be completed by end-2019.

Based on a valuation report by Henry Butcher Sdn Bhd dated April 11, the land carries a market value of RM245.6 million, assessed by using the comparison method of valuation.

Property division to remain Hap Seng’s key earnings contributor
By Supriya Surendran of theedgemalaysia.com | Thursday, 29 May 2014 14:29
http://www.theedgeproperty.com/news-a-view...ontributor.html

KUALA LUMPUR: Its property development division will remain Hap Seng Consolidated Bhd’s key earnings contributor. Hap Seng is set to launch development projects with a combined gross development value (GDV) of RM1 billion, said its managing director Datuk Edward Lee.

Among these projects, which are expected to be completed in two years, are high-end serviced residences along Jalan Tun Razak, and mid- to high-end projects in Balakong.

The diversified group has a landbank of 2,350 acres (951ha), with some 2,200 acres in Sabah, where Hap Seng has already established its name as a leading township developer.

Asked if Hap Seng would consider listing its property divison, as it had listed its plantation division, Hap Seng Plantations Holdings Bhd in 2007, Lee replied that it was always an option for the company.

“At the moment we do not have any concrete plans to list any of our divisions as we are concentrating on growing our business,” he told reporters after the group’s annual general meeting yesterday.

The property division had contributed 50% to the group’s operating profit for the financial year ended Dec 31, 2013 (FY13).

Hap Seng is also optimistic about the performance of its plantation division, despite the current downward trend in the prices of crude palm oil (CPO).

“Commodity prices do not stay [the same], it is always going to have ups and down, but [on average] the price should be firm, “ said Lee.

The group anticipates higher CPO prices than RM2,343 per tonne last year, due to the effects of unfavourable weather conditions such as the El Nino droughts that cause lower production and push up CPO prices.

On its automotive division, Lee said the group is investing in a new Mercedes-Benz showroom in Kota Kinabalu, and is in the planning stage of constructing a new showroom in Kuching.

“These are investments that we are making to enhance our business in the Mercedes-Benz dealership [in Malaysia], “ he said.

Hap Seng announced that it reported a net profit of RM125.41 million for the first quarter ended March 31,2014 (1QFY14), up 22% from the RM 102.78 million in the previous corresponding quarter.

This was attributed to the improved contributions of all divisions, except its quarry and building materials division which had a flat performance.

Quarterly revenue increased 8% to RM858.47 million in 1QFY14, against RM792.47 million a year ago, on the back of higher contribution from its plantation, property and trading divisions.


This article first appeared in The Edge Financial Daily, on May 29, 2014.

Mitrajaya sees exciting growth ahead
By Levina Lim of theedgemalaysia.com
Monday, 26 May 2014 16:07
http://www.theedgeproperty.com/news-a-view...owth-ahead.html


KUALA LUMPUR: Construction firm Mitrajaya Holdings Bhd’s order book is at an all-time high of RM1.2 billion. With that the company is positive on churning out strong earnings growth at least in the next two years.

In an interview, managing director Tan Eng Piow (pic) told The Edge Financial Daily that Mitrajaya was targeting to achieve revenue of RM500 million to RM600 million for current financial year ending Dec 31 (FY14), and at least RM600 million for FY15.

A revenue target of RM500 million would mean revenue growth of 48% compared with its revenue of RM338 million in FY13 and RM250.5 million in FY12. Using the net profit margin of 9% for FY13 as the yardstick, Mitrajaya is expected to achieve a net profit of RM43 million, or 11 sen per share.

Mitrajaya’s main line of business is in the construction of infrastructure projects and building works. It aims to secure an additional RM300 million worth of jobs to boost its order book to RM1.5 billion for FY14.

“We have seven more months [to the end of FY14]. We are quite confident in securing an additional RM300 million worth of jobs,” said Tan, adding that its construction order book had averaged about RM600 million in the past.

The company derives some 64% of its revenue from its construction division.

The company recently inked a RM277.4 million deal with UEM Sunrise Bhd to build a condominium block at Symphony Hill in Cyberjaya. The largest outstanding contract in its order book is an RM428 million job involving the Malaysian Anti-Corruption Commission building in Putrajaya.

“We are tendering for some of the infrastructure and building jobs, mainly from government-linked companies. We also have two jobs with the East Coast Economic Region,” said Tan, adding that the company is currently tendering for RM1.75 billion worth of construction and infrastructure jobs.

He said that the average size of jobs handled by Mitrajaya in the past was between RM50 million and RM100 million, but the value has now exceeded RM100 million, reflecting the company’s growth.

Other jobs in its tender book include Petroliam Nasional Bhd’s refinery and petrochemical integrated development project in Johor and building works at Bandar Setia Alam in Putrajaya and Ikano Power Centre at Jalan Cochrane, Kuala Lumpur.

Apart from the record high order book, the company’s property development segment could be another growth engine.

“In the next couple of years, the potential to realise all these landbank in terms of value would give us a substantial cash flow. In the 2015 to 2016 period, our group turnover should increase quite [significantly],” said Tan.

Mitrajaya is preparing to unlock the value of its over 200 acres (81ha) of landbank in Banting, Selangor and Melaka.

“We have no plans in terms of acquisition of new land, only those in developing what we already have to realise its profit and potential,” said Tan.

The recent spike in Mitrajaya’s share price was partly driven by its undervalued landbank, which has not been revalued for many years. Tan said the value of the company’s 257.65 acres of landbank is estimated to have almost quadrupled to RM623.17 million from its book value of RM160.55 million as at end-2013.

The estimated landbank value is nearly double that of the company’s market capitalisation of RM337 million based on its share price of 85.5 sen.

Its share price had hiked 85.7% to an all-time peak of 91 sen on May 19, from 49 sen on Feb 28. The stock then retreated to 85.5 sen last Friday, down 6.04% from its peak.

The company has plans to develop high-end bungalow units in Pulau Melaka spanning 17.84 acres of reclaimed land opposite the Mahkota Parade shopping mall.

“We are looking at a design concept that is similar to a mini Sentosa. We will look to market it to foreigners, especially Singaporeans,” he said, adding that the project will be developed in various stages as it comprises 92 bungalows.

“We have yet to develop the land. We plan to get all the necessary approvals in place by early-2016 and kick off the development in 2016,” said Tan.

Mitrajaya also owns 180 acres of freehold land in Banting that is targeted for a mixed development by early 2016. Tan said the Banting land has appreciated to RM12 to RM15 psf from RM3.71 psf.

Its plan over the next three years also includes the development of three blocks of luxury condominiums in Wangsa Maju with a gross development value (GDV) of RM650 million and a mixed development in Puchong Prima with a GDV exceeding RM1 billion.

Besides its operations in Malaysia, it also has a self-sufficient property development business in South Africa which has an undeveloped landbank of 152 acres on which it plans to construct high-density residential units, as well as a business park, shopping mall, office building and hotel.

“South Africa has been profitable to us every year. We believe within the next one to two years, we should have a sizeable amount of cash with us to make additional acquisitions in South Africa without too much borrowings” he said.

IGB plans RM15b GDV projects for next 3 years
By Yen Ne Foo of theedgemalaysia.com
Thursday, 29 May 2014 14:27
http://www.theedgeproperty.com/news-a-views/12638.html


KUALA LUMPUR: IGB Corp Bhd is well-stocked with domestic and international property development plans worth a total of RM15 billion in gross development value (GDV) for the next three to five years.

The property group, which is among the big landlords of retail and office space in the Klang Valley, is also looking at hiving off some of its “underperforming” assets that have a total value in excess of RM100 million, said its group managing director Datuk Seri Robert Tan.

The ongoing developments in Malaysia are the mixed projects known as Southkey Project and 18@Medini in Iskandar, Johor, Cititel Express Penang, the four-star The Wembley-St Giles Premier Hotel Penang and a 55-storey office block in the last parcel of land in its Mid Valley development in the Klang Valley.

On the global front, IGB is developing the Tank Stream-St Giles Premier Hotel Sydney and a mixed-project in Blackfriars, London.

After a successful year in 2013 for its hotel division, which registered a gross operating profit of RM277 million, IGB now wants to expand its international footprint of the St Giles hotel brand to major cities in Europe and Africa.

Tan said that the group already has “one foot into” the African continent. Negotiations with potential joint-venture partners have started to either acquire existing properties or to purchase land to build new ones.

Plans for “central locations” in Europe, however, are still at early stages and Tan has declined to specify the cities that IGB is eyeing on.

He said IGB will be injecting an initial RM500 million into plans to expand in Africa and Europe but this could later be increased to RM2 billion through bank borrowings and other financing methods once the plans are more concrete.

On the disposal of non-performing assets, Tan said, “We try and rationalise these assets … Some of the hotels are not performing [and] some of the offices in town are not performing … It is better for us to sell.”

While he did not identify the properties IGB wants to dispose of, Tan confirmed that some of the non-core assets are already put on sale in the market.

Additionally, Tan reveals that the group has no plans to inject any of its new properties into the IGB Real Estate Investment Trust (REIT). It is also not planning to establish separate REITs for its hotels and offices as the market environment is not suitable for new REITs.

“It’s not the right time to do REITs because the US is looking at tapering. So, interest rates for the next six to nine months, [as] I can see, will go up by a few [basis] points. The minute [they] go up, bonds go down and REIT value goes down,” Tan explained.

He added that IGB is able to raise funds, if needed, through bank borrowings and pay a lower interest rate of approximately 4% as opposed to establishing a REIT where IGB has to pay a yield of at least 6%.

IGB’s retail division, through Mid Valley Megamall and The Gardens, is still the company’s largest earnings contributor (50%), said Tan.

IGB has also diversified into the education business and established the IGB International School in Sierramas, Sungai Buloh in Selangor. The RM200 million school will open in two weeks’ time.


This article first appeared in The Edge Financial Daily, on May 29, 2014.

UOA Development to roll out two projects with RM840m GDV
By Cynthia Blemin of theedgemalaysia.com
Thursday, 29 May 2014 14:34
http://www.theedgeproperty.com/news-a-view...m840m-gdv-.html


KUALA LUMPUR: Property developer UOA Development Bhd is looking to roll out two projects, one in Old Klang Road and the other in Sentul over the next few months.

UOA Development general manager Eugene Lee said the gross development value (GDV) of the two projects totals RM840 million and is expected to contribute to the company’s sales for financial year 2014 (FY14).

“We did some previews for our existing buyers and the response has been good, it should translate into sales starting next month,” said Lee after the company’s shareholders meetings yesterday.

As at December 2013, unbilled sales for the company stood at RM1.25 billion, according to Lee.

The Southbank project in Old Klang Road has a RM500 million GDV and will comprise the development of 647 residential units and six boutique office towers, while Sentul Point (phase 1) will consist of 462 units of residential and 15 units of shop offices.

Both the projects are expected to be completed by 2017.

The pricing for Sentul Point averages between RM500 and RM550 per sq ft (psf) with units ranging from 800 to 1,000 sq ft. The Southbank development will be priced slightly higher between RM650 and RM750 psf with units mostly at 900 sq ft, said Lee.

The units will cater to the growing demand of the medium-end market with its residential properties costing below RM1 million, he added.

Currently, 70% of its sales come from the residential segment with the remaining derived from commercial units, he said.

“UOA has a long history of developing commercial properties, but looking at the pipeline of residential projects that we have, the contribution will be higher in residential and will be more than 75%,” he added

He noted that UOA Development’s undeveloped landbank stood at 1,240 acres (501.81ha) within Greater Kuala Lumpur.

Meanwhile, UOA Development’s net profit fell 62% year-on-year to RM44.65 million in the first quarter ended March 31, 2014, from RM119.14 million a year ago. This came on the back of the absence of en bloc sales for the quarter under review.

Revenue was down to RM174.99 million compared with RM381.86 million previously.

In a filing with Bursa Malaysia yesterday, UOA Development said it recorded total new sales of RM335.5 million for the first quarter of 2014 with strong sales contribution from a new residential project — South View Serviced Apartments — and other ongoing projects such as Scenaria at North Kiara Hills and Kencana Square in Subang.

“For the remaining of 2014, we intend to launch approximately RM2 billion worth of development projects including Southbank in Old Klang Road, Sentul Point (Phase 1) in Sentul and a parcel of Jalan Ipoh land,” it said.


This article first appeared in The Edge Financial Daily, on May 29, 2014.

This post has been edited by accetera: May 31 2014, 12:17 AM

The more the merrier. More choice, opportunity, demand, transaction, $$$

From The Edge this week. Already widely speculated in Chinese newspaper before.

I will join other say no kau kau.

Alot more coming. Land proposals very active.

I guess the developer made an offer that the school's management couldn't resist.

1km from Tun Razak Exchange

First posted:
https://www.facebook.com/groups/115179435202482/

The construction industry is expected to heat up again as new projects are set to redefine our urban landscape. As neighbouring cities like Jakarta and Manila continue to build higher and higher, here in Kuala Lumpur, we want our skyline to rival our neighbours and even that of Shanghai, Dubai, Moscow, New York City, and other world cities.

>> Just For Fun Listing. Let the Party Begins from Year 2015 onwards...

- Warisan Merdeka - 118 storeys (foundation work in progress)

- KL Metropolis Landmark Tower - 102 storeys

- BBCC Signature Tower - 88 storeys

- Oxley Towers KLCC - 2X 83 storeys (proposal)

- D'Twist Tower 3 @ DK-City - 80 storeys equivalent (40 storeys duplex)

- Plaza Rakyat Tallest Block - 79 storeys (revival based on past plan)

- KLCC-Qatari Tower 2 - 76 storeys (under construction)

- KLCC-Qatari Tower 1 - 72 storeys (66 storeys atop 6 storey podium)

- TRX Signature Tower - 71 storeys

- The Jewel T1 @ I-City - 70 storeys (a series of staggered towers)

- Four Seasons Place Kuala Lumpur - 65 storeys (under construction)

- Phoenix Storm-Lim Foo Yong KLCC - 3X 62 storeys

- Harrods Development T2 - 61 storeys

- Tradewinds Center Tower 1 - 60 storeys

- 8Conlay Hotel Tower - 60 storeys

- Lot D1 KLCC - 60 storeys

- OSK Square Tower - 60 storeys

- Lai Meng School - 2X 60 storeys (development order)

- New Dayabumi Tower - 60 storeys

- Hotel Tower @ KL Bund Setapak - 60 storeys

- Vogue Suites One @ KL Eco City - 60 storeys (under construction)

>>More than 35 towers in Klang Valley between height of 45-59 storeys.

>>Wait a minute. Iskandar Malaysia is also expected to rival Kuala Lumpur for the supertower supremacy.

It's good for the Chinese since the school will be relocated to Cheras which is in need of such school, not in the capital city where the number of pupils is dwindling.

Gamuda, MMC Corp get KVMRT Line 2 project
Wednesday, 29 October 2014
http://www.thestar.com.my/Business/Busines...ject/?style=biz

KUALA LUMPUR: Gamuda Bhd and MMC Corporation Bhd have been appointed the joint venture company to carry out the Klang Valley Mass Rapid Transit’s (KVMRT) Sungai Buloh-Serdang-Putrajaya Line project.

The two companies announced on Wednesday they had received the letter from the Mass Rapid Transit Corporation Sdn Bhd for the project.

The terms and conditions of PDP’s appointment will be contained in a project delivery partner agreement to be negotiated and agreed, they said.




Boustead Ikano awards RM651.6m retail complex job to WCT
Wednesday, 29 October 2014
http://www.thestar.com.my/Business/Busines...-WCT/?style=biz

KUALA LUMPUR: WCT Holdings Bhd has accepted a RM651.62mil contract from Boustead Ikano Sdn Bhd to build an 11-storey retail complex along Jalan Cochrane here.

WCT said on Wednesday the contract included building a major retail shopping centre with two levels of basement car parks, four levels of retail, food & beverage and entertainment and four levels of elevated car parks.

The entire project was expected to be completed in second half of 2016.

“The contract is expected to contribute positively to the group’s future earnings and net assets,” said WCT.

Banyan Tree?

Banyan Tree is 55, clubbed under below 60 point.

DBKL has approved more than 3 dozen high density projects and more coming.

Many upcoming launches on the drawing board.

Which part of kl have the most?
My bet is along old klang road and Japan puchong

This post has been edited by elmond: Jul 5 2017, 11:41 AM

Cheras？

So we shall see continuously over-supply in the market? I would have hope that the demand will catch up with the current over-supply condition but looks like not.

Can still buy? Getting worry.

wow, paradigm oug to cont? tansri decided not to axe? i thought been cancelled?