I dun think the Commuter line has much overlap to PUTRA.

We are talking about PUTRA line extend to subang parade, definately onli people commuting around PUTRA will benefit from this, how can people comute in STAR oso benefit ?? unless they change the train at masjid jamek.

But who want to travel from say maluri to masjid jamek and change the train to subang parade ???

All those current transport mode to subang parade is a given, so now u hv a new LRT, how can it be no addition to visitor to subang parade ? unless both line is 100% overlap, but this is not the case.

OK, back to subang parade.

Subang parade was once the largest or longest mall in SEA during 80s (86) i think, after so many year the mall is still relevant and vibrant and it is now position as sub urban mall target for people around subang area and tag as a middle to middle upper class mall. So now u add a new mode of transport which is the LRT that cut through some densely populated area from the other side of federal highway as well as further down.

Yes may be some current visitor (who drive or take taxi or take bus or take KTM) may switch to LRT but there will be people who dun go to subang parade currently will consider going to subang parade using the putra line ......

so this will improve the visitation of subang parade, which will translate to higher rental yield and higher asset value....

This post has been edited by mok thye yee: Mar 14 2010, 09:16 PM

Do not forget Subang Parade is planned as a CONNECTING STATION, additional advantage for people and the Parade to have a rest and food or shopping before moving to the destination.

mok thye yee,

Indeed, I never ruled out the possibility of additional visitors to Subang Parade. That's why I mentioned in my post that the increase would not be as significant as what others might think. If it is going to be of great significance, why has HEKTAR's price remained?

Of course, you can have your own opinion, and I have my own. There is no right or wrong. The reason I am posting this is because I want other members to consider such point before making a rash decision just because there might be an LRT station near Subang Parade.

SKY 1809,

You might be right, but might be wrong as well. There are already a few connecting destinations between Putra, Ampang and KTM, but not all are as popular as a stopover for commuters. It all depends on the distance one has to travel. I might be wrong as well, but my point is also worth considering as part of the analysis process.

i believe it wont stop anywhere near subang parade , since the government acquire small patch of land near subang parade,not big enough for a station. my parent condo's tennis court near subang parade had been acquired for the LRT project too , cannot play tennis there anymore >_<

Oledi mentioned in the plan that Subang Parade IS A CONECTING STATION.

More so as part of the integration with the Commuter Train Service.

Whether technically possible or not, not for me to judge.

http://www.patchay.com/2009/09/future-lrt-and-mrt-in-kl.html

This post has been edited by SKY 1809: Mar 15 2010, 09:23 AM

http://www.propwall.my/bangsar/menara_uoa_...CFYIwpAodTULiSw

The parcel B are selling at RM 289 MILLION ? Is this the building?

ooops i got mentioned here....

Your website is informative. Congratulation.

Just that Government might change plans every now and then.

Disappointments may come alone the way.

Thanks mate..... yes the govt has change plan and many more changes will come (haha nanti de govt sendiri yg kena change lol)

Information i have for UOA REITS.


Attached File(s)
 UOA.pdf ( 38.26k ) Number of downloads: 62

Hmmm nothing to buy at REIT counter at the moment?

Amfirst look okay to me.

I may buy Stareit, I just hope the new injection of properties will enhance its yield.

Cherroy what is your view on UOA newly proposed acquisition?

If fund through the RM1.30 private placement and with better yield ahead, then seem ok for me. As there is little details, how new rental income from the new building.

As in current situation, I wish to see any new acquistion is fund through private placement, as borrowing cost will become higher only in near future, while as reported office space supply will be more due to completion of several new building which could depress the rental.
At the moment, I wish to see on reit is they secure borrowing on long term basic, which lock down the interest rate. So don't need refinance too often.

Becos base on my calculation current acquisition price per squre feet is 40% higher compare with current holding properties. Of course we can assume that bangsar locality is better therefore the price is higher. But 40% will it be too expensive or not? File attached for your reference.

Current 4 properties i average out the price per square feet was only RM 583.5 WHERE as the new properties price per square feet is RM 820.8. Which is 40% higher.

I am from Sarawak not sure about the properties price for these area. But i am sure that Bangsar locality is good. Need advice.

This post has been edited by darkknight81: Mar 17 2010, 04:31 PM


Attached File(s)
 UOA.pdf ( 38.26k ) Number of downloads: 8

Location wise is a very important factor on the valuation, so cannot compared directly one.

As different location fetch different rate of rental. Just like KLCC can fetch >Rm10 per sq feet rental, while those outskirt KL may be around RM5 only.
Bangsar is around midvalley. KL properties price is quite high throughout.

The important factor to judge the valuation is the ability to fetch the rental. If the particular area and properties can fetch good rental, then 40% higher than others properties won't be a big issue at all.

I came across an article that stated midvalley mall, can fetch as high as Rm50 per sqft rental for ground floor, it just show how the properties situation around KL.

Thanks Cherroy. Besides that occupancy rates play an important role too. If you check on their current 4 properties, those with higher occupancy rates give better yields. The two proposed acquired properties occupancy rates is around 88% which is quite good. These are all the strong point for these two pcs of buildings.

RM 1.30 should be quite a good price to enter now i believe. But one thing we need to take note is i believe the gearing ratio will increase to around 40 over %.

Sifu please advice i believe you also entered quite a number of UOA REITS RIGHT

darkknight81,

Allow me to comment a bit. The information you posted is really insufficient. A good analysis would have taken into account the current rental yield of the buildings, comparisons with surrounding buildings and average rental tenure of the tenants, and not the number of parking bays.

You mentioned that the gearing ratio for UOAREIT would rise to around 40%, which is alarming. I will be wary of companies with gearing of over 30%. A higher gearing rate would reduce our dividends, which is a negative issue for REIT investors.

Any idea how long it will take to formalize the rationalization ?
For this counter, we were planning to go holland with you.