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> LIBERTY ARC @ AMPANG UKAY, A massive 88-acre megaproject begins now (Investment)

accetera
post May 22 2015, 03:32 PM, updated 2y ago

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Ecofirst land bank fast expanding
The Star BizWeek | Saturday, 2 May 2015
By: NG BEI SHAN
http://www.thestar.com.my/Business/Busines...ding/?style=biz

EVEN before small property developer Ecofirst Consolidated Bhd has completed the acquisition of a 62-acre piece of land fronting the Middle Ring Road II at Ulu Kelang from Zurich Insurance (M) Bhd, it now has inked a deal to buy another 25 acres next to the 62-acre parcel.

It will be buying the 25-acre plot from large property player IGB Corp Bhd, which has a market cap of RM3.84bil. Ecofirst has a market capitalisation of a mere RM248mil.

Ecofirst signed an option agreement with IGB to acquire the 25-acre land for RM62.8mil.

Coupled with the land purchase from Zurich Insurance, this means Ecofirst is committing a total of RM207.8mil for buying land in the Ulu Klang area. This clearly is a big feat for Ecofirst.

As at its third quarter ended Feb 28, 2015, Ecofirst had RM8.73mil in cash and RM139mil of borrowings. It reported a small profit of RM1.4mil for the nine-month period, compared to RM34mil in the preceding nine months. So is Ecofirst biting off more than it can chew?

“When I see a piece of land and I have a gut feeling that I can do it, I will go ahead,” its CEO Datuk Tiong Kwing Hee quips.

The new 25-acre piece should complement the mixed project that Ecofirst has planned for the Zurich land.

The price Ecofirst is paying for the IGB land works out RM57.45 per sq ft. In comparison, it is paying RM54 per sq ft for the land it is buying from Zurich Insurance.


Tiong points out that the IGB land is strategically located and comes at a “good price”.

To start its biggest development just yet, Ecofirst has secured a RM130mil loan from Malaysian Industrial Development Finance Bhd to fund the acquisition of the Zurich parcel that costs RM145mil.

That will increase it gearing level but it will fund the second parcel from operational cashflow or a rights issue.

“We’re working closely with our bankers. They’re comfortable to back us because they think we got an attractive price and there could be more upside to the land value in the near future,” he explains.

Its luxury condominiums known as Upper-East@Tiger Lane in Ipoh, Perak will start to contribute to its income next quarter, boosting its earnings further, he adds.

Of the 529 units of the condominiums it offered, more than 60% were taken up.

On top of that, its two malls -1Segamat mall in Johor and South City Plaza in Seri Kembangan will be contributing positively to its operating cashflow.

According to him, the RM1.4mil profit recorded for the third quarter was mainly from the recurring income of these two malls.

He targets to seal the deal with Zurich in the second half of the year before it can launch 6.5 acres of it with a gross development value of RM422mil. The first phase includes 1,631 serviced suites and 19 units of two-storey commercial lots and will keep the company busy for three years.

At the same time, Ecofirst estimates the development cost for phase one, including the pro-rated land, at RM304mil, while the gross development profit is expected to be RM118mil.

Tiong intends to pay for the 25 acres with that profit.

The company has 30 months to pay the remaining RM56.52mil to IGB.

The down payment of RM6.28mil would be settled via a combination of proceeds from its private placement last year which saw it raise RM20mil and internally generated funds.

He plans to launch the serviced suites at RM750 per sq ft, which he considers reasonable due to its prime location, good connectivity and a mere six to seven minutes drive to KLCC.

The Ulu Kelang project is expected to contribute to Ecofirst’s income for the next eight to ten years. Should it proceed to acquire the 25-acre parcel, the project would be even more significant to the company.

With a collective of 87 acres in the same area, Ecofirst can do a lot more.

It plans to improve the connectivity of the two parcels by building a road on IGB’s land and make it the egress for vehicles exiting the Middle Ring Road. On the other hand, the 62-acre parcel would become the ingress for vehicles entering the Middle Ring Road.

Tiong says it plans to roll out the first phase of the Zurich land before going into detail on the new parcel.

“Right now, we just want to focus on carrying out an EGM to get shareholders’ approval for the acquisition.”

Ecofirst is required to obtain shareholders’ approval within four months from the execution date, with an automatic extension of two months from the expiry of the four months upon request.

The land is currently occupied by other sub-tenants, whom IGB had taken steps to evict.

The move to buy the second parcel makes sense. Just that timing and its cashflow will be of essence.

What it needs to do now is to ensure that it can time its first project well so that the second parcel would be secured.

But the hardy businessman said he remains committed in growing the company.

He managed to revive the stalled 1Segamat mall in Johor into a fully occupied mall and loss making South City Plaza in Seri Kembangan into a cashflow generating mall.

Since beginning of the year, Tiong has been increasing his stake from slightly less than 10% to close to 15% now.

At IGB’s end, the property heavyweight will be raking in a handsome profit of close to 40% or RM17.7mil from the disposal. IGB bought the land for RM36mil 21 years ago and it carried a value of RM39.4mil as at Dec 31, 2013.

But that is not particularly significant, for IGB makes an average profit of some RM190mil per year for the last five years.

That means the profit made from the land divestment could make up less than 10% of IGB’s bottomline. Asked how the deal came about, Tiong says: “Perhaps it’s good chemistry. Maybe they see something in us. We’re a cost-prudent company.”

This post has been edited by accetera: Nov 1 2016, 09:45 PM
accetera
post Oct 12 2015, 12:34 AM

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FLASH NEWS ::: Happy Monday folks. We start early today. So there was a big commotion about an upcoming project in Ampang, Selangor. We attempt to give you the first insights. The 80-acre comprehensive development is directly fronting MRR2 Highway and 5 minutes drive south to Flamingo Hotel.

[Subscribe to latest news from PTLM at www.ptlm.com.my]

The first phase launch known as "LIBERTY @ ARC CENTRAL" will be a 6-acre development consisting of 3 blocks of 35/36-storey SOHO Towers sitting on carpark podium and 19 units of developer-leased shoplexes. Block A - 569 units, Block B - 576 units and Block C - 486 units. It is designed by Veritas, one of our leading architect and will feature a complete facility podium with a 50m Olympic-length swimming pool. The FREEHOLD project features 450 sq ft of fully furnished SOHO apartments with allocated carpark. The established developer has priced the SOHOs from RM299K onwards.

***
Location: Next to Dataran Ukay

Agent picture (posted here for non commercial use only):

user posted image

This post has been edited by accetera: Oct 12 2015, 12:46 AM
ChuiChuiShui
post Oct 12 2015, 02:49 AM

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seems nt bad?
accetera
post Oct 12 2015, 10:28 AM

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Development Phase: Phase 1

Address/Road Frontage: Ampang, Selangor and Fronting MRR2

Developer: Andaman Group (marketing) and EcoFirst Consolidated Bhd

Land Area: 6.5 acres out of total 88 acres development (original 62 acres + an option for 25 acres)

Land Title: Commercial

Tenure: Freehold

Property Type: SOHO Apartment under HDA (Loan up to 90%)

Unit Size: 450 sq ft (5 sub-variation types)

No. of Blocks: 3 blocks sitting on a 6-level carpark/facility podium and 19 units of shoplexes

No. of Units: ~1,621 units

- Block A: 569 units / 36-storeys
- (Current Launch) Block B: 566 units / 35-storeys
- Block C: 486 units / 35-storeys

No. of Lifts: 3+1

No. of Units Per Typical Floor: 18 units

Expected Completion: Q1 2019 (36 months from SPA)

Car Park: Each unit allocated 1 carpark

Security: 3 tiers

Furnishing:
- Fully furnished studios
- Korean vinyl wallpaper
- 1 aircon for Living and 1 aircon for Bed Area
- Wardrobe
- Many many more...

Facilities:
- 50m Olympic-length swimming pool
- 5,000 sq ft gymnasium
- Squash court
- Jacuzzi
- Many many more...

This post has been edited by accetera: Oct 12 2015, 10:35 AM
rainman19
post Oct 12 2015, 11:10 AM

Look at all my stars!!
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this SOHO project tap on lowest entry and 'kiasu startegy' to create wow factor



Mr.JJchampian
post Oct 12 2015, 11:17 AM

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so this is the RM299K PROPERTY... receive a msg also .... still a wow project ... dont know what kind of target tenant ?
forever1979
post Oct 12 2015, 02:31 PM

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i like this, 'below market price 40% & more' ....

This post has been edited by forever1979: Oct 12 2015, 02:32 PM
ChuiChuiShui
post Oct 12 2015, 05:08 PM

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tix to entry + ballot? Also, which means if some1 interested on 2..then buy 2 tix? mellow.gif
rainman19
post Oct 12 2015, 05:10 PM

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project so good until sell ticket?
doubt in this current market sentiment
nookie188
post Oct 12 2015, 05:13 PM

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QUOTE(Princezz @ Oct 12 2015, 02:50 PM)
Selling tickets? You mean got to buy ticket to attend sales launch? Wow!!
*
jokers lah....

yesterday already started selling in Cheras Leisure mall...no tickets no nothing needed..

SA said jalan ampang ..but this location is definitely not jalan ampang - total misrepresentation..

SOHOs in this part of Jalan ULU KELANG....? rclxub.gif
HELLO HELLO
post Oct 12 2015, 05:43 PM

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turned impossible to possible to cheap kaw u.
sibeh all pigeon holes with jiakawlat high density 260+ per acre.

slow slow wait.

last few days newspaper showed certain new JB property 3 years ago launch price from 350K..now VP drop to only worth 90K after bank valuation. 1 of the singaporean investor kena kaw kaw.

if here KV maybe after vp can drop till 30%. maybe wait until VP baru choose. maybe cheaper than launch price.
accetera
post Oct 12 2015, 06:11 PM

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My concern is too high density.
yck1987
post Oct 12 2015, 06:23 PM

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similar high density product in southern region by developer.

Arc @ austin hill,JB and now Arc Central

http://www.andaman.com.my/en/arcjb
nexona88
post Oct 12 2015, 08:16 PM

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QUOTE(HELLO HELLO @ Oct 12 2015, 05:43 PM)
turned impossible to possible to cheap kaw u.
sibeh all pigeon holes with jiakawlat high density 260+ per acre.

slow slow wait.

last few days newspaper showed certain new JB property 3 years ago launch price from 350K..now VP drop to only worth 90K after bank valuation. 1 of the singaporean investor kena kaw kaw.

if here KV maybe after vp can drop till 30%. maybe wait until VP baru choose. maybe cheaper than launch price.
*
really shocking.gif may I know which project hmm.gif
wil-i-am
post Oct 12 2015, 08:24 PM

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Parking 1st
zlancer1989
post Oct 12 2015, 08:39 PM

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So this is what my fren telling me today~ so high density shocking.gif
VincentProperty
post Oct 12 2015, 11:38 PM

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INTERESTED~
HELLO HELLO
post Oct 12 2015, 11:44 PM

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QUOTE(nexona88 @ Oct 12 2015, 08:16 PM)
really  shocking.gif  may I know which project  hmm.gif
*
Lazy go find. Just Go check last week nan yang sang pao newspaper. Property section. Already mentioned clearly there. Owner rugi till cry also no tear.
aaron1717
post Oct 13 2015, 09:24 AM

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QUOTE(HELLO HELLO @ Oct 12 2015, 11:44 PM)
Lazy go find. Just Go check last week nan yang sang pao newspaper. Property section. Already mentioned clearly there. Owner rugi till cry also no tear.
*
I heard already 230 units booked for Block B, i guess its booking mode on~~~
llika
post Oct 13 2015, 10:28 AM

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turned impossible to possible

so can turned mmr2 to jalan ampang?

i heard already 1000 unit booked! icon_rolleyes.gif

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