By Sharen Kaur
Published in NST on Nov 9 2010
UEM Land Holdings Bhd has no plans to raise its bid for Sunrise Bhd after the latter's share price jumped above the offer price yesterday.
It offered RM2.80 per share in an all-share deal but Sunrise shares rose 28 per cent to close at RM3.22 yesterday.
Although major shareholders with a 40.34 per cent stake have agreed to the offer, UEM Land still needs another 9.7 per cent for the deal to happen.
"We believe the current market price of Sunrise is only reflecting the proposed dividend announced, the proposed offer structure and the pricing of our offer to acquire Sunrise at RM2.80 per share," UEM Land said in response to Business Times' questions.
Sunrise shareholders are offered 1.33 UEM Land shares for every share they hold, priced at RM2.10 each.
"As such, any increase in UEM Land share price, will result in a proportionate increase in Sunrise share price as to reflect the proposed structure and pricing," it added.
Shares of UEM Land rose 10.2 per cent to close at RM2.49 yesterday.
Most analysts think the offer, which values Sunrise at RM1.4 billion, is low.
AmResearch Sdn Bhd said the offer means UEM Land is getting Sunrise at a 28 per cent discount to its estimated net asset value (NAV) of RM3.89 a share.
OSK Research said there is a 31 per cent discount to its 2011 target price of RM4.33, based on the offer price and after adding the recently-announced net interim dividend of 20 sen.
But ECM Libra reckons that not everything can be based on numbers in this deal, as the fact that major shareholders are accepting could mean a lack of growth prospect for Sunrise.
Datuk Tong Kooi Ong, a major shareholder of Sunrise, is staying in a senior management role in the enlarged group.
"As such, the question to ask is whether the existing major shareholders of Sunrise expect positive value creation from this exercise," ECM Libra said in a report.
Analysts also think that the deal may spark more takeovers in the sector.
There is speculation of a deal between IJM Land Bhd and Bandar Raya Development Bhd (BRDB).
BRDB, famed for crafting thriving communities like Bangsar, has land surrounding its CapSquare development and along the Federal Highway.
MIDF Research senior analyst Syed Muhammed Kifni thinks that Sime Darby Property Bhd and Mah Sing Group Bhd would be a good fit.
(ENDS)
Tuesday, November 9, 2010
PjH plans RM1.3b projects to make Putrajaya more vibrant
By Sharen Kaur
Published in NST on Nov 3 2010
PUTRAJAYA Holdings (PjH) Sdn Bhd said its next phase of development at the administrative capital will comprise commercial and residential properties worth more than RM1.3 billion.
Director and chief executive officer Datuk Azlan Abdul Karim said the properties which will be built in five years, will make Putrajaya a liveable city.
"The perception is that Putrajaya is for government buildings. Our next focus is to build office towers, retail, an entertainment strip and medium- to high-end housing to create vibrancy for Putrajaya.
"We will have several mixed developments and waterfront projects to attract expatriates, too," he told the media in Putrajaya yesterday.
Putrajaya, which started in 1995, comprise 20 precincts sprawled over 4,931ha. By 2020 it will have 3.8 million sq m of government offices, 3.4 million sqm of commercial space, and 65,000 residential units with a working population of 500,000.
PjH, the master developer for Putrajaya will call for tenders for the new projects by early 2011. Some of the projects are in design stage now, Azlan said.
Azlan said PjH will either lease the office towers or sell them if there is demand.
He said PjH has been approached by several government agencies and corporate companies.
"We aim to also attract multi-national companies. We will be talking to some big names," he said.
All the buildings will meet the Green Building Index standards, Azlan said.
On the residential side, he said PjH will build affordable homes starting from RM150,000, terraced houses priced from RM450,000, and waterfront villas, which it expects to sell from RM2 million.
"We will cater to all segments of the market. I am bullish on the outlook for Putrajaya. There is pent-up demand for new houses here," he said.
Azlan said on average, its housing projects are snapped up within one month after launch.
"When we build commercial or residential properties, we will make sure there is demand. We are not going to be like Dubai where they kept on building regardless or not there was demand," he said.
(ENDS)
Published in NST on Nov 3 2010
PUTRAJAYA Holdings (PjH) Sdn Bhd said its next phase of development at the administrative capital will comprise commercial and residential properties worth more than RM1.3 billion.
Director and chief executive officer Datuk Azlan Abdul Karim said the properties which will be built in five years, will make Putrajaya a liveable city.
"The perception is that Putrajaya is for government buildings. Our next focus is to build office towers, retail, an entertainment strip and medium- to high-end housing to create vibrancy for Putrajaya.
"We will have several mixed developments and waterfront projects to attract expatriates, too," he told the media in Putrajaya yesterday.
Putrajaya, which started in 1995, comprise 20 precincts sprawled over 4,931ha. By 2020 it will have 3.8 million sq m of government offices, 3.4 million sqm of commercial space, and 65,000 residential units with a working population of 500,000.
PjH, the master developer for Putrajaya will call for tenders for the new projects by early 2011. Some of the projects are in design stage now, Azlan said.
Azlan said PjH will either lease the office towers or sell them if there is demand.
He said PjH has been approached by several government agencies and corporate companies.
"We aim to also attract multi-national companies. We will be talking to some big names," he said.
All the buildings will meet the Green Building Index standards, Azlan said.
On the residential side, he said PjH will build affordable homes starting from RM150,000, terraced houses priced from RM450,000, and waterfront villas, which it expects to sell from RM2 million.
"We will cater to all segments of the market. I am bullish on the outlook for Putrajaya. There is pent-up demand for new houses here," he said.
Azlan said on average, its housing projects are snapped up within one month after launch.
"When we build commercial or residential properties, we will make sure there is demand. We are not going to be like Dubai where they kept on building regardless or not there was demand," he said.
(ENDS)
Property demand boost in Greater KL
By Sharen Kaur
Published in NST on Nov 2 2010
DEMAND for medium- to high-end properties in Greater Kuala Lumpur/Klang Valley (Greater KL/KV) is expected to increase to match regional peers, the Economic Transformation Programme (ETP) report said.
Greater KL/KV will need to house one million new residents by 2020, the report added.
Currently, the population of Greater KL/KV is about six million, contributing RM263 billion or 30 per cent to the nation's Gross National Income (GNI).
Over the next decade, Greater KL/KV is targeted to grow in population by 5 per cent annually and achieve a GNI growth of 10 per cent a year.
The economic aspiration for Greater KL/KV is to grow its GNI contribution to RM650 billion by 2020, the report noted.
The economic clusters that will contribute to growth is the Sungai Buloh land development, Sime Darby Vision Valley and Matrade centre as well as the Kampung Baru, Blackwater and Batu Kantomen mixed developments.
Others include the Kuala Lumpur International Financial District, commercial projects in Pudu and Cochrane, the Sungai Besi Bandar 1Malaysia mixed development, Media City Angkasapuri and Global Healthcare Metropolis.
The Greater KL/KV has been identified as one of the 12 National Key Economic Areas (NKEA) laboratories to drive rapid growth parallel with upgrading the city's liveability.
The report said strategic redevelopments such as the old Pudu Jail site, the old KTM railway station and Chinatown has the potential to create more iconic places within Greater KL/KV, adding to its liveability.
Across the 12 NKEAs, Greater KL/KV has the largest public sector funding requirement of RM58 billion or 34 per cent of the total investment requirement.
Greater KL/KV covers 10 municipalities, each governed by local authorities - Kuala Lumpur City Council, Perbadanan Putrajaya, Shah Alam City Council, Petaling Jaya City Council, Klang Municipal Council, Selayang Municipal Council, Ampang Jaya Municipal Council and Sepang District Council.
The ETP has outlined nine entry point projects that will be pivotal towards achieving the nation's aspiration for Greater KL/KV to achieve a top 20 ranking in city economic growth by 2020.
The aim is also to attract 200 new MNCs by 2020. Attracting 100 such firms will contribute about RM40 billion in annual GNI to Greater KL/KV.
There are now 1,600 MNCs based here, compared with 17,000 in Shanghai and 6,000 in Singapore.
(ends)
Published in NST on Nov 2 2010
DEMAND for medium- to high-end properties in Greater Kuala Lumpur/Klang Valley (Greater KL/KV) is expected to increase to match regional peers, the Economic Transformation Programme (ETP) report said.
Greater KL/KV will need to house one million new residents by 2020, the report added.
Currently, the population of Greater KL/KV is about six million, contributing RM263 billion or 30 per cent to the nation's Gross National Income (GNI).
Over the next decade, Greater KL/KV is targeted to grow in population by 5 per cent annually and achieve a GNI growth of 10 per cent a year.
The economic aspiration for Greater KL/KV is to grow its GNI contribution to RM650 billion by 2020, the report noted.
The economic clusters that will contribute to growth is the Sungai Buloh land development, Sime Darby Vision Valley and Matrade centre as well as the Kampung Baru, Blackwater and Batu Kantomen mixed developments.
Others include the Kuala Lumpur International Financial District, commercial projects in Pudu and Cochrane, the Sungai Besi Bandar 1Malaysia mixed development, Media City Angkasapuri and Global Healthcare Metropolis.
The Greater KL/KV has been identified as one of the 12 National Key Economic Areas (NKEA) laboratories to drive rapid growth parallel with upgrading the city's liveability.
The report said strategic redevelopments such as the old Pudu Jail site, the old KTM railway station and Chinatown has the potential to create more iconic places within Greater KL/KV, adding to its liveability.
Across the 12 NKEAs, Greater KL/KV has the largest public sector funding requirement of RM58 billion or 34 per cent of the total investment requirement.
Greater KL/KV covers 10 municipalities, each governed by local authorities - Kuala Lumpur City Council, Perbadanan Putrajaya, Shah Alam City Council, Petaling Jaya City Council, Klang Municipal Council, Selayang Municipal Council, Ampang Jaya Municipal Council and Sepang District Council.
The ETP has outlined nine entry point projects that will be pivotal towards achieving the nation's aspiration for Greater KL/KV to achieve a top 20 ranking in city economic growth by 2020.
The aim is also to attract 200 new MNCs by 2020. Attracting 100 such firms will contribute about RM40 billion in annual GNI to Greater KL/KV.
There are now 1,600 MNCs based here, compared with 17,000 in Shanghai and 6,000 in Singapore.
(ends)
On the fast track
By Sharen Kaur
Published in NST on October 28 2010
SEVERAL companies made presentations to the National Key Economic Area (NKEA) lab about three months ago on the Kuala Lumpur-Singapore high-speed train project, industry sources say.
Among them were YTL Corp Bhd and Hartasuma Sdn Bhd, which was said to be partnering a Chinese state-owned firm.
Hartasuma, a Class "A" Bumiputera contractor, is a member of Ara Group, founded by Datuk Aisamar Kadil Mydin Syed Marikiah and Tan Sri Ravindran Menon, director and executive director of Subang SkyPark Sdn Bhd respectively.
Its track record includes repair and overhaul of passenger coaches for KTM Bhd and civil works (Kuala Kubu Baru-Tanjung Malim Halt) for the Rawang-Ipoh electrified double tracks.
Business Times understands that some of the companies have proposed to undertake the high-speed rail project for between RM8 billion and RM14 billion.
A government source said the project could be worth RM10 billion to RM12 billion and that it would take five to eight years to complete as it will cover 300km.
The source said that cost would depend on the type of technology deployed, whether it is magnetic levitation (maglev) or conventional, and how the tracks are aligned.
Maglev will cost more than conventional, but requires less maintenance, is safer and faster. The system also uses more electronics and essentially involves "non-contact electromagnetic levitation".
"If the alignment is built along the coastal road, then it would involve a lot of land acquisition and this would add to the cost," he said.
The source added that the project would depend on a study by the Treasury, the Performance and Delivery Unit (Pemandu) and other government agencies.
It is believed that Pemandu, which is leading the NKEA lab, has invited officials from the Ministry of Transport, the Land Public Transport Commission (Spad) and City Hall to attend briefings held separately by the companies.
The high-speed train project was mooted by YTL in 2006. It had proposed to undertake the project for RM9 billion, partnering Germany's Siemens, a global expert in high-speed rail technology.
The YTL proposal, however, was shot down because of the high cost involved.
Malaysia is mulling over a high-speed rail linking Kuala Lumpur and Singapore that will cut travel time between the two cities to 90 minutes.
Plans would require the approval of Singapore, which has expressed its interest in the project. However, the government has not given a firm approval, the source said.
(ENDS)
Published in NST on October 28 2010
SEVERAL companies made presentations to the National Key Economic Area (NKEA) lab about three months ago on the Kuala Lumpur-Singapore high-speed train project, industry sources say.
Among them were YTL Corp Bhd and Hartasuma Sdn Bhd, which was said to be partnering a Chinese state-owned firm.
Hartasuma, a Class "A" Bumiputera contractor, is a member of Ara Group, founded by Datuk Aisamar Kadil Mydin Syed Marikiah and Tan Sri Ravindran Menon, director and executive director of Subang SkyPark Sdn Bhd respectively.
Its track record includes repair and overhaul of passenger coaches for KTM Bhd and civil works (Kuala Kubu Baru-Tanjung Malim Halt) for the Rawang-Ipoh electrified double tracks.
Business Times understands that some of the companies have proposed to undertake the high-speed rail project for between RM8 billion and RM14 billion.
A government source said the project could be worth RM10 billion to RM12 billion and that it would take five to eight years to complete as it will cover 300km.
The source said that cost would depend on the type of technology deployed, whether it is magnetic levitation (maglev) or conventional, and how the tracks are aligned.
Maglev will cost more than conventional, but requires less maintenance, is safer and faster. The system also uses more electronics and essentially involves "non-contact electromagnetic levitation".
"If the alignment is built along the coastal road, then it would involve a lot of land acquisition and this would add to the cost," he said.
The source added that the project would depend on a study by the Treasury, the Performance and Delivery Unit (Pemandu) and other government agencies.
It is believed that Pemandu, which is leading the NKEA lab, has invited officials from the Ministry of Transport, the Land Public Transport Commission (Spad) and City Hall to attend briefings held separately by the companies.
The high-speed train project was mooted by YTL in 2006. It had proposed to undertake the project for RM9 billion, partnering Germany's Siemens, a global expert in high-speed rail technology.
The YTL proposal, however, was shot down because of the high cost involved.
Malaysia is mulling over a high-speed rail linking Kuala Lumpur and Singapore that will cut travel time between the two cities to 90 minutes.
Plans would require the approval of Singapore, which has expressed its interest in the project. However, the government has not given a firm approval, the source said.
(ENDS)
EPF to call for open bid in 2011
By Sharen Kaur
Published in NST on October 25 2010
THE Employees Provident Fund (EPF) is expected to call for an open tender to develop the 1,214ha of federal land in Sungai Buloh, Selangor, in the second half of next year.
It is learnt that the EPF has initiated a master plan for the land development, which is expected to take six months to a year to complete.
The land, dubbed the "new hub" for the Klang Valley and owned by the Rubber Board of Malaysia, will be split into several parcels to attract local and foreign private property companies.
"The land will not be offered to just one developer. We will be fair and offer land parcels to several companies through an open tender system," a government source said.
Speculation was rife that the EPF would likely appoint Malaysian Resources Corp Bhd (MRCB) as the project's master planner and lead developer since it owns 41.5 per cent of the company.
However, the pension fund said that Kwasa Land Sdn Bhd - its joint venture with the government - would tender individual parcels of land through a transparent process.
The EPF also said that it had requested several developers and property consultants to advise it on the development and feasibility of the land.
The project is expected to have affordable and high-end housing - both landed and high-rise - office towers, shop-offices, retail, hospital, shopping mall, hypermarket, schools and parks.
Prime Minister Datuk Seri Najib Razak has said that the whole project would generate gross development value of RM10 billion.
Some potential participating developers said they would leave it to the EPF to decide how much land to allocate to them and the components to build.
Among them are Glomac Bhd, Gadang Holdings Bhd, IJM Land Bhd, Mah Sing Group Bhd, UEM Land Bhd, Bolton Bhd and MRCB.
A source said the companies could buy small parcels of land to carry out their own projects or develop the land in a joint venture with the EPF on a profit-sharing basis.
"We believe that EPF is likely to parcel out to various developers so that each can introduce new concepts. This will expedite the development as several parcels will be developed concurrently," Mah Sing group chief executive officer Tan Sri Leong Hoy Kum told Business Times.
The project, approved on May 12, will be funded by the EPF over 15 years.
It is understood that the project site will be connected to the Kelana Jaya light rail transit.
(ENDS)
Published in NST on October 25 2010
THE Employees Provident Fund (EPF) is expected to call for an open tender to develop the 1,214ha of federal land in Sungai Buloh, Selangor, in the second half of next year.
It is learnt that the EPF has initiated a master plan for the land development, which is expected to take six months to a year to complete.
The land, dubbed the "new hub" for the Klang Valley and owned by the Rubber Board of Malaysia, will be split into several parcels to attract local and foreign private property companies.
"The land will not be offered to just one developer. We will be fair and offer land parcels to several companies through an open tender system," a government source said.
Speculation was rife that the EPF would likely appoint Malaysian Resources Corp Bhd (MRCB) as the project's master planner and lead developer since it owns 41.5 per cent of the company.
However, the pension fund said that Kwasa Land Sdn Bhd - its joint venture with the government - would tender individual parcels of land through a transparent process.
The EPF also said that it had requested several developers and property consultants to advise it on the development and feasibility of the land.
The project is expected to have affordable and high-end housing - both landed and high-rise - office towers, shop-offices, retail, hospital, shopping mall, hypermarket, schools and parks.
Prime Minister Datuk Seri Najib Razak has said that the whole project would generate gross development value of RM10 billion.
Some potential participating developers said they would leave it to the EPF to decide how much land to allocate to them and the components to build.
Among them are Glomac Bhd, Gadang Holdings Bhd, IJM Land Bhd, Mah Sing Group Bhd, UEM Land Bhd, Bolton Bhd and MRCB.
A source said the companies could buy small parcels of land to carry out their own projects or develop the land in a joint venture with the EPF on a profit-sharing basis.
"We believe that EPF is likely to parcel out to various developers so that each can introduce new concepts. This will expedite the development as several parcels will be developed concurrently," Mah Sing group chief executive officer Tan Sri Leong Hoy Kum told Business Times.
The project, approved on May 12, will be funded by the EPF over 15 years.
It is understood that the project site will be connected to the Kelana Jaya light rail transit.
(ENDS)
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