Anyone know why?


This post has been edited by benson92: May 25 2017, 10:49 AM


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big boss no money?

PROPERTY developer and asset manager Mammoth Empire Holdings Sdn Bhd has signed on the dotted line to sell its flagship Empire Shopping Gallery in Subang Jaya, Selangor, to Pelaburan Hartanah Bhd (PHB) for RM570 million cash.

With the agreement, which was sealed late last week, MEH will be able to raise some much-needed funds and quash rumours of further delays in the completion of its behemoth Empire City Damansara project near Damansara Perdana, Selangor.

When contacted, PHB group managing director Datuk Kamalul Arifin Othman confirms that the deal was concluded late last week. “We bought it for RM570 million,” he tells The Edge.

It is learnt that MEH has been granted a call option to buy back the shopping mall on the fifth anniversary of the sale. It also has the right of first refusal to buy the mall should PHB decide to dispose of it within the five years.

However, Kamalul declined to comment when asked to confirm if the terms of the agreement included MEH’s right to buy back the mall in five years’ time. He was also tight-lipped on the minimum price that MEH would need to repurchase Empire Shopping Gallery.

Sources, nevertheless, say the price is RM670 million or the market value of the asset at the time, whichever is higher.

This means PHB will be able to make at least RM100 million in profit over five years or RM20 million a year while it holds the property. It will also enjoy the net income derived from the mall. The Edge had previously reported that the mall’s net rental yield is around 6.5% to 7%.

The Empire Shopping Gallery has a gross built-up area of 600,000 sq ft and net lettable area of 350,000 sq ft spread over five levels. A total of 216 tenants occupy 98% of the shopping centre, whose sale is expected to be completed in the next three months.

“It is a win-win situation for both parties because MEH is able to unlock the value of the asset now and yet regain ownership at a later date while for PHB, the 6.5% net rental yield is above the prevailing rate for fixed deposits, plus the guaranteed buyback is at a higher price in the future,” a valuer tells The Edge when asked for his comments.

Details of the deal are scanty. Still, its timing may raise eyebrows, considering that there is shopping mall glut at present and subdued consumer spending due to a sluggish economy. Market observers comment that as a fund that invests in real estate, PHB could have bargained for a more favourable deal. More so because MEH can choose to repurchase the mall after five years if it is still performing well — and the company has the financial muscle to do so — or not if it is not.

Interestingly, the management of the mall remains in MEH’s hands.

The Empire Shopping Gallery and the Empire Hotel catapulted MEH to fame in 2010, although the group had been operational since 2002.

The group was founded by Datuk Sean Ng Yee Teck, who is the group managing director, and Datuk Danny Cheah, who is the group executive director. Sentimental reasons aside, it is understood that MEH opted for the call option because it sees further upside for the mall as it has been operational for only six years now and has yet to realise its full potential.

An MEH spokesperson says with the deal, an earlier plan to raise funds through the issuance of bonds has been scrapped. In June last year, The Edge reported that MEH was ready to let go of the shopping mall should it receive a favourable and concrete offer. Subsequently, in August, The Edge reported that MEH was looking at raising funds via bonds and had engaged Hong Leong Investment Bank Bhd and credit rating company RAM Holdings Bhd for the exercise.

The spokesperson adds that the bulk of the money from the sale will go towards the completion of Empire City Damansara while the remainder will be used as working capital. The 28-acre integrated development with an estimated gross development value of RM5 billion is located opposite the PJ Trade Centre in Mutiara Damansara.

Incidentally, PHB had purchased from MEH an 18-storey office block with 319 parking bays, known as Block H, in Empire City Damansara for, according to sources, RM120 million.

The spokesperson also says MEH plans to move into Block H on April 17 this year. “The CCC (certificate of completion and compliance) for the building is expected to be awarded in February. We will be moving from our current headquarters in Empire Subang to Empire City Damansara as we will have a much larger component to take care of. We will be taking up five levels in the building.”

PHB is understood to be looking for tenants to fill the other floors.

On the two million sq ft retail component of Empire City Damansara, whose opening has been delayed several times, the spokesperson says, “We are targeting a partial opening in August to coincide with the 29th SEA Games.” Acknowledging that a few tenants had dropped out due to the delay, he says there have also been requests from some tenants to postpone the opening. Even so, the Empire City Damansara mall has managed to secure 80% tenants. One of the three Marriott International hotels will be ready by year end, the spokesperson adds.

He dismisses speculation that Empire City Damansara may not be ready to host the SEA Games’ ice-skating event this August. In fact, he says, the venue will be handed over in April or May this year for the participants to start their training. This is the only ice-skating rink with Olympic specifications in Malaysia.

By the time the Games start, there will be no sign of the cranes, he adds. “All the physical and structural components will be completed. There will be no more construction activity when we open.”

This article first appeared in The Edge Malaysia on Jan 30, 2017.

This post has been edited by tahfeikei: May 25 2017, 10:51 AM

lol not even 3years right?

Overrated

overpriced bread

but their biz quite good, esp the Sungei Wang area.

so sad, tried in vietnam and korea

better than malaysia's ... their coffee in malaysia taste so bad

i think so

yes but overpriced still got ppl go

agree, korea i tried before, not bad

kolos je... masih banyak brand lain lagi...

should be $

rumours been running round since the stalling of the mega project 2+ years ago

bangsar got branch?

Loaf & Lavender not overpriced?

whole malaysia branch closed or only empire shopping gallery?

Tealive boss should carry this brand

same la, but lavender bread ok wo

best place to chill for me while im in that area...

1st dating location with my wife back in 2014...

Korean but with French name.

memories

got, near the nasi kandar shop.

A lot of shops kolos.

Recently Korean chicken Pelicano also close.

Sign of bad times?

Korean stuff are good but overpriced.

Like their Kuvings juicer selling at RM2.7k.

just ridiculous.

honestly those juicer are overrated

The Loaf 10x lagi sedap.

sure down la..
their one bread already cost u RM5,
RM5 can eat 1 plate mixed rice for a lunch / dinner d,
the RM5 bread after eat also feel nothing only..

last few years every one crazy of property, buy property, day-dreaming renting out property will make them rich,
buy & rent property is just a Money Game like JJPTR only..
now all the property leaving empty no people wanna rent..
buyers still need to pay bank loan + maintenance fee,
so where got money to buy RM5 bread to eat??

this is just a start, it will be a chain effect,
coming 3 years more and more fancy restaurants, hipster restaurants will be closing down...

the one opposite farenhai88?

lets see

haiz so many women kena con by their products.

they stamp a Korean actor on the box and then say its good for your health one bullshit about oxydixation, they just get sucked in to buy.

that's why I hate K-pop, they get so many endorsements that they make the Korean products more expensive.

tried once only, the bukit bintang branch... i would say, totally overrated and food so-so only... in a better economy situation, they probably could still survive...

tour le jours brand is from CJ which is used to be part of samsung

cj was head by samsung founder eldest son and daughter while samsung was taken over by the younger son

Obviously the shit hype is over

no worries, few years down the road there will be more and more tongsan tourists coming in, they are big spenders

the first batch of beneficiaries of money games will soon open their own businesses and buy some properties, so in other way also its the butthurt peasants who will work for them

msia is a crooked country, only crooked ppl will stay at the top of the pyramid

got it?

i think has they able to maintain similar quality to the original one they wouldt have fared this bad... their coffee in malaysia branch are shit.. even vietnam branch can serve good coffee

+1. not to hate kpop but their marketing really

Overrated bakery shop.

I went there once and I don't see any hype at all.
They paid bloggers so much to promote their overrated shop

nah malaysia is crooked top to bottom

have u tried the one in vietnam or korea? they are goos actually, i think malaysia one no quality

I see.

I hope one day we have some Malaysia brands that can be well known overseas.

Like Ipoh Chicken Rice in Seoul.

Satay Haji Samsuri in Tokyo.

Lotus in Taipeh.

It's not sign of bad times.
It means that they depends so much on overhype marketing while their product is trash.

Once the hype is gone, the shop will be gone.

But tous just small fry in korea.

oh you'd be surprised, how much people will pay for it

closest we can see is paparich in australia
secret recipe in some middle east countries
marry brown in turkey

there re many ppl willing to pay rm5 for a bread
so at this segment its pretty competitive
even The Loaf also getting irrelevant these days, not expanding much

Marrybrown & Parkson getting big in China.

Also Jimmy Choo though you can eat them.

but hey at least got Maggi & Milo.

Is their bread in Vietnam as good as Korea?

i notice that everytime a malaysian brand grow big enough in malaysia and as they begin expand oversea they would be collapsing within , start losing market share in malaysia and eventually many branches closing down like

old town white coffee, secret recipe, paparich

and anyway malaysian population isnt that big and worse our market further splitted out from our diverse culture. thats why local artists hard to make it big if they stay in malaysian market

Never went there.
All I remember is a place where they sell overpriced pastries and people willing to pay for it.

yup , even their coffee so good. malaysia one coffee so expensive but taste so bad and bread so so

Dah nak june ni

pay for what? the RM5 bread?

definitely some people willing to pay RM5 but relative to ratio of malaysia population maybe just 0.0000000000001% of people
if many people willing to pay RM5 then they wont close down d,
even if wanna close down, there will be other investors see the opportunity and buy over the business..

now a day business not easy to do..
even big company also suffering..

without people spending like that you where got house to rent? sleep under staircase? and who give you job if business bad?

Brb, going for tea time today.
Btw never visited Malaysian one.

Everything is overpriced. Good riddance.

are you in vietnam?

i tried twice, was really excited when they opened in bangsar but was disappointed .. but i thought at that time maybe they just opened so give another try a year later but nope still bad lol not worth my money can spend other places more worth

From all the hype on FB, I never wanted to visit them anyway.
That's why I didn't visit them here as well. There's better option like highland coffee or cong cafe or phuc long.
I'm tempted to try starbucks too, never tried it here.

We aren't that level yet in majority.

RM38 oso complaint

Parkson in deep shit now oo

Maggi and Milo are nestle brands

Loaf kinda a niche market con datuk

the rest is con melbourne wannabes

owh no, more than that

its actually a very competitive scene, that shop has like 4-5 competitors in almost every location they have.

its one of the biggest money earners these days, cook some ayamas sausage, baked beans and shit, charge 30 bucks

reminds me of antipodean.

I'm surprised they closed much earlier than Bread Story.....

that not soo bad, least got some fresh shrooms

some give like wat canned button shrooms, knife brand, baked beans and some giant brand shit stuff

but ahmoi like

but in jakarta it's everywhere and fluorishing wor

your "people spend like that" is refering to who??
the people spend RM5 buy bread ?
or the people buy property and rent out?

i have no bad perception to any of the 2 group of people above,
i also hope economy to be stable, every one can afford Rm5 bread once a while.
But TOO MUCH of people day dreaming thinking that buy property and rent out can use rental to cover loan installment and after 35 years get a free house.
this is one of the root cause of property price hike, economy down, people can't afford expensive food once a while, shop restaurant close down, business doing bad start cutting headcounts..
it is a chain effect caused all people in a tough life..

not asking everyone not to buy property and rent out,
but TOO MUCH of people day dreaming of this will bring big trouble..
end end public just drop in the legal Money Game created by property developers..
rich ppl getting rich, poor ppl getting poor..

Everyday i pass by in front of sg wang... Never even masuk once. Me too poorfag.

aww but the last time i was in ho chi minh i saw TLJ every corner of the street in the city

yea me too i cant get those ppl who go oversea and visit places like mcdonalds and starbucks lol

highland coffee is it the same as nguyen coffee

Wannabe French Kimchi Pop

You tok what? I bought RM16 sammich from Tous Le Jous!!!!

Feel like highland is more localized, but the coffee is really kau.
Actually I went Mcd for their nasi vavi.
I kinda wonder how different their starbucks taste too.

Aik, so fast closed down

Another is Paris Baguette .....also Korean but with French name

true what u said makes sense.

Yes, I also hate the way they exploit skinny skimpy plastic surgery enhanced women.

Not say overpriced. Our RM is just so weak. Plus they selling with Korean market in mind. They are expecting Koreans who got shitload of money to buy it. Not for the average peanut earning Malaysian

It's just a normal bakery in Korea, just like Kings Bakery we have here. The why it's PREMIUM here is because it's a KOREAN brand thus malaysians it's a premium brand and all their flour, yeast, ingredients premium

Flour, yeast all imported from Korea! But please lah, KING Bakery is really sampah...even supermarket Bakery is better than them. King used to be respetacble maybe 10 years ago...now it's the worst bakery i can think off.

This post has been edited by SushiBurgerX: May 25 2017, 12:27 PM

is time for King's to make a comeback! bread and cake ftw!

but why is Japan able to target low cost, but Korea doesn't want to do this? Look at Daiso, Panasonic and Aeon.

I wonder if Samsung and LG still sell low margin electronic products.

maybe Korea didn't want to bring their Lotte to here. But I am just curious.

Daiso stuff probably made in China...LOL

Never eat there before

-

This post has been edited by everest: May 25 2017, 12:39 PM

I think Banana Republic is made in China too.

Nowadays most things are made in China.

bye TLJ, dont come bak pls

Cherryx

I miss the egg benedict

Mister Donuts also closing for good.

The shop upcat wei...tried the croissant...no butter taste at all...cut corners like this sure hailat la

Because for malaysia, name and font like jepunis will be instantly good.
Same goes to jaguh kampung p2, selling car sake of jepunis

No wonder last weekend I went, their quality like crap. Almost everything out of stock.

Nice decor but hardly any patron.

jibong their business damn good one , need to que summore.

honestly there is no going back, rich people getting richer, poor people getting poorer.
the gap between the rich and poor will only get worst cause nothing is going to stop it, not even the government.
mainly because poor people day dream most of the time, while rich people stay greedy and always find ways to make more.
if the government taxes rich people more and give more BR1M to the poor, it will make the poor lazier and rely more on the gov.
when low income, get BR1M, when no income, blame gov and go protest. this is how you stay poor forever.
so in the end it's mindset problem not government or corporate problem.
every year also got poor people become rich, they dream, but not day dream, they find ways and action.

U must be joking. Daiso is a Japanese brand. However,

Most if not all of their products are from China. The same goes for Panasonic and Aeon. Alot of their products are Made in China.

Do differentiate between Made in Japan and Made in China. Huge difference in terms of price. Same goes for Made in Korea products

nah
if u were born into hardcore poor family these days, chances are u ll end up poor for most of ur life
this is true in China, HK, Korea, and other developed countries in the world, no more social mobility

MacD managed by yahudi can last so long. What's the secret?

I am not joking. Made in China but sold by Japanese mart using low cost price margin. What's wrong with that? I am trying to say, Japanese is targeting the low cost market. This is what I like. Whether its China made Korea made or Japanese made.

And most stuff are made in China anyway? Banana Republic is made in China if I not mistaken. Nike shirts made in Bangladesh if I not mistaken, so what?

I am just saying, I so far see a lot of hype expensive Korean stuff. Can you name me some cheap low cost Korean products, whether made in china or where else?

yes this is the spirit, keep it up. mindset like this is the reason why the poor stays poor.

other than the typical electronics, there isn't really that many korean brands in malaysia yet to have a fair judgement

there is this SPAO, a JV between korean and Parkson, the pricing is below Superdry at its best