By Sharen Kaur
Published in NST on July 26 2010
ERJAYA Land Bhd (BLand) will launch new projects worth more than RM500 million this year to take advantage of pent-up demand for housing in the Klang Valley.
BLand is bullish on the property market, its senior general manager of properties and marketing, Mah Siew Wan, said.
"We are seeing a return of buying interest for high-end houses. Our properties are all unique and in prime areas so we are confident of brisk sales," she told Business Times in an interview.
BLand, 53 per cent controlled by Tan Sri Vincent Tan's Berjaya Corp Bhd, will launch Vastana25, a high-end project, at Seputeh Heights in Kuala Lumpur by end-July.
Last weekend, it relaunched The Peak at Taman TAR in Selangor.
The Peak, comprising 88 guarded and gated bungalow lots, was re-launched as it now has freehold status.
By the end of this year, BLand will launch KM1 Condominiun in Bukit Jalil and shop offices in Berjaya Park in Shah Alam, Selangor.
The group has about 10 ongoing developments worth some RM1 billion and it will launch more projects next year, Mah said.
BLand has some 400ha in the Klang Valley with the potential of generating more than RM8 billion in gross development value.
It also has projects in China, Vietnam and South Korea worth more than US$12 billion (RM 38.4 billion).
In China, BLand has a mixed-development project comprising retail, entertainment, theme park and water park in Sanhe City, Hebei Province. It has yet to launch the project.
Infrastructure work on its maiden US$3 billion (RM9.6 billion) resort-type mixed-development township project in South Korea has started.
The project featuring apartments, serviced residences, semi-detached and resort-style villas, a wellness resort, a casino and resort hotel, hotel residences, a mall and an indoor arena will be launched next year.
In Vietnam, BLand has a US$6.3 billion (RM20.7 billion) mixed-development project in Dong Nai Province.
-ends-
Tuesday, July 27, 2010
Axis REIT Managers on buying spree
By Sharen Kaur
Published in NST on July 21 2010
AXIS REIT Managers Bhd (ARMB) targets to manage some US$500 million (RM1.6 billion) worth of assets and is in the process of buying more properties in the Klang Valley and Johor.
ARMB, manager of the Axis Real Estate Investment Trust, an Islamic office and industrial property trust, now manages 23 properties worth a combined RM952 million, ranging from offices and warehouses to logistic centres and hypermarkets.
By end-2012, it will manage 27 properties worth a combined RM1.2 billion, ARMB chief executive officer Stewart LaBrooy told a media briefing in Kuala Lumpur yesterday.
ARMB is buying a logistics warehouse in Port of Tanjung Pelepas and a Tesco hypermarket in Johor, as well as the Axis Technology Centre in Petaling Jaya, Selangor, and the Axis PDI Centre in Klang, Selangor, totalling RM240 million.
LaBrooy said the deals, except for Tesco, will be completed by October this year. ARMB is still in negotiations to buy the hypermarket.
He added that ARMB is also in the midst of buying the Axis Techpoint 1 in Petaling Jaya, a logistics warehouse in Johor and an office building in Cyberjaya, through third party transactions.
The acquisitions, worth a combined RM190 million, will be completed by early next year, he said.
LaBrooy also said ARMB will place out 68.82 million units next month or about 20 per cent of its current fund size, to raise RM132 million for the acquisitions.
"As you get bigger, the placement gets larger and you can do more. We can accumulate bigger assets and put them in our balance sheet, placing us in the big boys club," he said.
LaBrooy said ARMB will continue to look for valuable assets in prime areas with long term returns.
ARMB's net profit for the quarter to June 30 2010 almost doubled to RM21.9 million due to the higher value of its properties.
"It is always our intention to be in the billion ringgit club. We have reached the first step of development, which is to surpass the RM1 billion mark.
"What is next is to reach RM2 billion. We will work very hard to get to that level. Anything we buy must have a long term strategy," LaBrooy said.
He added that ARMB may dispose of some of its current assets that have fully matured.
-ends-
Published in NST on July 21 2010
AXIS REIT Managers Bhd (ARMB) targets to manage some US$500 million (RM1.6 billion) worth of assets and is in the process of buying more properties in the Klang Valley and Johor.
ARMB, manager of the Axis Real Estate Investment Trust, an Islamic office and industrial property trust, now manages 23 properties worth a combined RM952 million, ranging from offices and warehouses to logistic centres and hypermarkets.
By end-2012, it will manage 27 properties worth a combined RM1.2 billion, ARMB chief executive officer Stewart LaBrooy told a media briefing in Kuala Lumpur yesterday.
ARMB is buying a logistics warehouse in Port of Tanjung Pelepas and a Tesco hypermarket in Johor, as well as the Axis Technology Centre in Petaling Jaya, Selangor, and the Axis PDI Centre in Klang, Selangor, totalling RM240 million.
LaBrooy said the deals, except for Tesco, will be completed by October this year. ARMB is still in negotiations to buy the hypermarket.
He added that ARMB is also in the midst of buying the Axis Techpoint 1 in Petaling Jaya, a logistics warehouse in Johor and an office building in Cyberjaya, through third party transactions.
The acquisitions, worth a combined RM190 million, will be completed by early next year, he said.
LaBrooy also said ARMB will place out 68.82 million units next month or about 20 per cent of its current fund size, to raise RM132 million for the acquisitions.
"As you get bigger, the placement gets larger and you can do more. We can accumulate bigger assets and put them in our balance sheet, placing us in the big boys club," he said.
LaBrooy said ARMB will continue to look for valuable assets in prime areas with long term returns.
ARMB's net profit for the quarter to June 30 2010 almost doubled to RM21.9 million due to the higher value of its properties.
"It is always our intention to be in the billion ringgit club. We have reached the first step of development, which is to surpass the RM1 billion mark.
"What is next is to reach RM2 billion. We will work very hard to get to that level. Anything we buy must have a long term strategy," LaBrooy said.
He added that ARMB may dispose of some of its current assets that have fully matured.
-ends-
LBS to launch RM5b China project next year
By Sharen Kaur
Published in NST on July 14 2010
PROPERTY developer LBS Bina Group Bhd will launch its fourth project, worth over RM5 billion, in Zhuhai, China, in the second half of next year.
The 60:40 joint venture of LBS and Jiuzhou Group, a Chinese government-linked company, has been delayed by three years because of the uncertain economic conditions.
LBS managing director Datuk Lim Hock San said the master plan for the 76ha project comprising high-end residential properties was under way.
He said that its launch had been delayed because of the global economic crisis.
"We took the opportunity to fine-tune the development with new products. We estimate that the project's gross development value (GDV) will exceed RM5 billion," Lim said.
The concept will be similar to the Tropicana Golf & Country Resort in Petaling Jaya, Selangor, which features a golf course, bungalow lots, high-end condominums and some commercial elements, among other things.
Lim was speaking to reporters in Petaling Jaya yesterday after signing an agreement with MIMB Investment Bank Bhd, a unit of EON Bank Bhd, to act as the principal adviser and lead arranger for a RM135 million sukuk (Islamic bond) programme to finance LBS' projects.
The signing was witnessed by Housing and Local Government Minister Datuk Wira Chor Chee Heung.
The sukuk programme will be the first Islamic private debt securities issuance in the country to be guaranteed by Danajamin Nasional Bhd.
Lim said that proceeds from LBS' fund-raising exercise would go towards its new projects in the country, such as Bandar Putera Indah in Batu Pahat, Johor; D'Puchong in Puchong, Selangor; and Taman Royal Lily in Cameron Highlands, Pahang.
The projects, with a total GDV of RM600 million, are slated to be launched in the second half of this year.
Lim also said that LBS was expected to be back in the black this year. It posted a net loss of RM16.8 million last year.
"From January up until now, we have achieved RM180 million in sales. We expect more income in the second half of the year from our new launches.
"The sukuk issuance will enable us to do property development on a whole new level. We are moving to medium- to high-end property development."
LBS' landbank comprises 920ha in the Klang Valley, Batu Pahat, Cameron Highlands, Ipoh and China, which will keep it busy for the next 10 to 15 years.
-ends-
Published in NST on July 14 2010
PROPERTY developer LBS Bina Group Bhd will launch its fourth project, worth over RM5 billion, in Zhuhai, China, in the second half of next year.
The 60:40 joint venture of LBS and Jiuzhou Group, a Chinese government-linked company, has been delayed by three years because of the uncertain economic conditions.
LBS managing director Datuk Lim Hock San said the master plan for the 76ha project comprising high-end residential properties was under way.
He said that its launch had been delayed because of the global economic crisis.
"We took the opportunity to fine-tune the development with new products. We estimate that the project's gross development value (GDV) will exceed RM5 billion," Lim said.
The concept will be similar to the Tropicana Golf & Country Resort in Petaling Jaya, Selangor, which features a golf course, bungalow lots, high-end condominums and some commercial elements, among other things.
Lim was speaking to reporters in Petaling Jaya yesterday after signing an agreement with MIMB Investment Bank Bhd, a unit of EON Bank Bhd, to act as the principal adviser and lead arranger for a RM135 million sukuk (Islamic bond) programme to finance LBS' projects.
The signing was witnessed by Housing and Local Government Minister Datuk Wira Chor Chee Heung.
The sukuk programme will be the first Islamic private debt securities issuance in the country to be guaranteed by Danajamin Nasional Bhd.
Lim said that proceeds from LBS' fund-raising exercise would go towards its new projects in the country, such as Bandar Putera Indah in Batu Pahat, Johor; D'Puchong in Puchong, Selangor; and Taman Royal Lily in Cameron Highlands, Pahang.
The projects, with a total GDV of RM600 million, are slated to be launched in the second half of this year.
Lim also said that LBS was expected to be back in the black this year. It posted a net loss of RM16.8 million last year.
"From January up until now, we have achieved RM180 million in sales. We expect more income in the second half of the year from our new launches.
"The sukuk issuance will enable us to do property development on a whole new level. We are moving to medium- to high-end property development."
LBS' landbank comprises 920ha in the Klang Valley, Batu Pahat, Cameron Highlands, Ipoh and China, which will keep it busy for the next 10 to 15 years.
-ends-
Bandar Raya takes up stake in RM2.3b Johor project
By Sharen Kaur
Published in NST on July 13 2010
BANDAR Raya Development Bhd (BRDB) is buying Limitless Holdings Pte Ltd's stake in a RM2.3 billion waterfront project in Johor to strengthen its presence in the region and improve earnings.
BRDB, well known for its developments in the Bangsar enclave, Kuala Lumpur, wants to build more properties in Johor, riding on the success in Iskandar Malaysia, a spokesperson said.
"We calculated and evaluated the deal before buying the stake. It worked out well and we found it good value for our shareholders," the spokesperson added.
Based on a preliminary feasibility study, the project, dubbed "Residential North", is expected to generate gross development profit of RM700 million.
Construction work on the development featuring bungalows, detached houses, townhouses and condominiums in Puteri Harbour is expected to start in the third quarter of next year.
The project will take some six years to complete.
Limitless, a unit of the cash-strapped Dubai World, holds 60 per cent of Haute Property Sdn Bhd, which was formed in December 2007 to undertake the 44.4ha project. UEM Land Bhd, the master builder, owns the remaining 40 per cent.
It was reported that Limitless had decided to pull out of the project to raise cash and that BRDB had bought into Haute via its unit, Ardent Heights Sdn Bhd.
Ardent will pay Limitless RM75 million, which the latter had advanced to Haute as partial payment for development rights to the project.
It will also pay Limitless RM1 million to settle about RM10 million it had advanced to Haute to meet the latter's operating and development expenses.
"We are happy with the deal and also to be able to work with UEM Land, a reputable developer. We feel this is a good match. This is our first partnership together and we hope there will be more in time to come.
"We are seeking opportunities to grow in Johor and this is just one of the many plans we have," the BRDB spokesperson said.
BRDB is not new to Johor, having ventured there in the 1980s. By month-end, it will launch Straits View Residences in Permas Jaya, the first gated and guarded development in Johor with strata titles.
UEM Land, in an e-mail reply to Business Times' query, said there would be no impact on the project as BRDB was essentially stepping in to replace Limitless.
"We had decided to partner Limitless to tap their expertise in upmarket waterfront development and take advantage of their international market reach.
"Unfortunately, once the global financial crisis hit, we were unable to move this project forward as Limitless became entangled as part of the Dubai World group's debt restructuring plan, which in turn hindered the ability of Limitless and Haute to raise the required project financing.
"Because of this, both UEM Land and Limitless agreed to explore possible solutions to enable the Residential North project to move forward and we eventually agreed that BRDB replace Limitless as our joint-venture partner for this project," UEM Land said.
"In fact, with BRDB now coming in, we should be able to move the Residential North project forward," it added.
UEM Land said it was finalising the necessary agreements with BRDB and discussions were ongoing.
On project financing, UEM Land said it expects funds to be a mix of equity and debt (mainly project or bridging finance).
"Details of the funding plan will be finalised later, but, based on the financial strength of both BRDB and UEM Land, we do not foresee this to be an issue," it said.
-ends-
Published in NST on July 13 2010
BANDAR Raya Development Bhd (BRDB) is buying Limitless Holdings Pte Ltd's stake in a RM2.3 billion waterfront project in Johor to strengthen its presence in the region and improve earnings.
BRDB, well known for its developments in the Bangsar enclave, Kuala Lumpur, wants to build more properties in Johor, riding on the success in Iskandar Malaysia, a spokesperson said.
"We calculated and evaluated the deal before buying the stake. It worked out well and we found it good value for our shareholders," the spokesperson added.
Based on a preliminary feasibility study, the project, dubbed "Residential North", is expected to generate gross development profit of RM700 million.
Construction work on the development featuring bungalows, detached houses, townhouses and condominiums in Puteri Harbour is expected to start in the third quarter of next year.
The project will take some six years to complete.
Limitless, a unit of the cash-strapped Dubai World, holds 60 per cent of Haute Property Sdn Bhd, which was formed in December 2007 to undertake the 44.4ha project. UEM Land Bhd, the master builder, owns the remaining 40 per cent.
It was reported that Limitless had decided to pull out of the project to raise cash and that BRDB had bought into Haute via its unit, Ardent Heights Sdn Bhd.
Ardent will pay Limitless RM75 million, which the latter had advanced to Haute as partial payment for development rights to the project.
It will also pay Limitless RM1 million to settle about RM10 million it had advanced to Haute to meet the latter's operating and development expenses.
"We are happy with the deal and also to be able to work with UEM Land, a reputable developer. We feel this is a good match. This is our first partnership together and we hope there will be more in time to come.
"We are seeking opportunities to grow in Johor and this is just one of the many plans we have," the BRDB spokesperson said.
BRDB is not new to Johor, having ventured there in the 1980s. By month-end, it will launch Straits View Residences in Permas Jaya, the first gated and guarded development in Johor with strata titles.
UEM Land, in an e-mail reply to Business Times' query, said there would be no impact on the project as BRDB was essentially stepping in to replace Limitless.
"We had decided to partner Limitless to tap their expertise in upmarket waterfront development and take advantage of their international market reach.
"Unfortunately, once the global financial crisis hit, we were unable to move this project forward as Limitless became entangled as part of the Dubai World group's debt restructuring plan, which in turn hindered the ability of Limitless and Haute to raise the required project financing.
"Because of this, both UEM Land and Limitless agreed to explore possible solutions to enable the Residential North project to move forward and we eventually agreed that BRDB replace Limitless as our joint-venture partner for this project," UEM Land said.
"In fact, with BRDB now coming in, we should be able to move the Residential North project forward," it added.
UEM Land said it was finalising the necessary agreements with BRDB and discussions were ongoing.
On project financing, UEM Land said it expects funds to be a mix of equity and debt (mainly project or bridging finance).
"Details of the funding plan will be finalised later, but, based on the financial strength of both BRDB and UEM Land, we do not foresee this to be an issue," it said.
-ends-
K. Europlus aims for 2012 profit
By Sharen Kaur
Published in NST on July 13 2010
DEBT-LADEN Kumpulan Europlus Bhd (K-Euro) expects to be profitable in 2012, helped by its RM10 billion Canal City project and debt settlement, says its chairman Datuk Abdul Hamid Mustapha.
As at March 31 this year, K-Euro had borrowings of RM260 million.
It is proposing to raise RM90.8 million by disposing of 700 million shares in Talam Corp Bhd, a property developer. K-Euro has 26.51 per cent interest in Talam.
Abdul Hamid said that some RM40 million of the money raised will be used to pare its debts.
He added that K-Euro will look at other avenues to reduce its debt to some RM100 million by the year-end, which will see savings on interest of more than RM2.5 million a year.
"We expect K-Euro to do better going forward. Talam has over 1,200ha of undeveloped land in Selangor with gross development value of over RM8 billion. There will be five to six new projects next year and this will contribute to our earnings," Abdul Hamid told reporters after K-Euro's extraordinary general meeting (EGM) in Kuala Lumpur yesterday.
Last year, K-Euro posted a net loss of RM33.1 million. In the first quarter ended April 30 2010, its net loss was RM3.4 million.
The Canal City, located near Kota Kemuning and Putra Heights in Selangor, is a mixed development of 800ha. The 50:50 joint venture between K-Euro and IJM Corp Bhd will be developed over 15 years from the second half of next year.
Abdul Hamid said that K-Euro was also banking on the RM3.5 billion West Coast Highway project to improve future earnings.
The company is negotiating with the federal government to extend the concession agreement and for changes to be made to the terms and conditions to ensure the project is fundable.
"The project is there, but, technically, it has lapsed as we could not achieve our financial closure," he said.
The highway project was mooted in 1996, but has encountered delays because of several factors.
Abdul Hamid said the delays have caused project costs to increase by some 30 per cent, citing higher prices of building materials and changes to the alignment among the factors.
-ends-
Published in NST on July 13 2010
DEBT-LADEN Kumpulan Europlus Bhd (K-Euro) expects to be profitable in 2012, helped by its RM10 billion Canal City project and debt settlement, says its chairman Datuk Abdul Hamid Mustapha.
As at March 31 this year, K-Euro had borrowings of RM260 million.
It is proposing to raise RM90.8 million by disposing of 700 million shares in Talam Corp Bhd, a property developer. K-Euro has 26.51 per cent interest in Talam.
Abdul Hamid said that some RM40 million of the money raised will be used to pare its debts.
He added that K-Euro will look at other avenues to reduce its debt to some RM100 million by the year-end, which will see savings on interest of more than RM2.5 million a year.
"We expect K-Euro to do better going forward. Talam has over 1,200ha of undeveloped land in Selangor with gross development value of over RM8 billion. There will be five to six new projects next year and this will contribute to our earnings," Abdul Hamid told reporters after K-Euro's extraordinary general meeting (EGM) in Kuala Lumpur yesterday.
Last year, K-Euro posted a net loss of RM33.1 million. In the first quarter ended April 30 2010, its net loss was RM3.4 million.
The Canal City, located near Kota Kemuning and Putra Heights in Selangor, is a mixed development of 800ha. The 50:50 joint venture between K-Euro and IJM Corp Bhd will be developed over 15 years from the second half of next year.
Abdul Hamid said that K-Euro was also banking on the RM3.5 billion West Coast Highway project to improve future earnings.
The company is negotiating with the federal government to extend the concession agreement and for changes to be made to the terms and conditions to ensure the project is fundable.
"The project is there, but, technically, it has lapsed as we could not achieve our financial closure," he said.
The highway project was mooted in 1996, but has encountered delays because of several factors.
Abdul Hamid said the delays have caused project costs to increase by some 30 per cent, citing higher prices of building materials and changes to the alignment among the factors.
-ends-
Mah Sing buys lands in Selangor
By Sharen Kaur
Published in NST on July 10, 2010
MAH SING Group Bhd has bought three parcels of land in Puchong, Sg Buloh and Bukit Jelutong in Selangor to build residential, commercial and industrial properties worth RM1.1 billion.
The first parcel of land, opposite the Kinrara Golf Club in Puchong, is to develop residential properties.
Mah Sing said in a statement yesterday that the project, dubbed Kinrara Residence, has an estimated gross development value (GDV) of RM730 million.
The second parcel, which is adjacent to the Rubber Research Institute land in Sg Buloh is for a commercial project, known as Star Avenue, worth RM280 million.
In Bukit Jelutong, Mah Sing will build i-Parc 3, an industrial project worth RM82 million, which is a continuation of its i-Parc brand.
Mah Sing said the 3 parcels of land will reinforce its strength as one of the few local developers to offer a complete range of properties in its stable, namely residential, commercial and industrial.
With the new land acquired, Mah Sing has projects with remaining GDV and unbilled sales of about RM7.5 billion in the Klang Valley, Penang Island and Johor Baru.
Some 59 per cent of the projects are residential properties. Commercial and industrial make up 36 per cent and 5 per cent respectively.
Mah Sing said the landbanks will keep it busy for some 6 years.
This year alone Mah Sing has acquired new projects worth RM1.9 billion for building works stretching to 2011 and beyond.
"We are pleased that our performance has been acknowledged with our most recent award, the inaugural The Edge Billion Ringgit Club awards where we were named recipent for Highest Compound Returns to Shareholders over 3 years," it said.
-ends-
Published in NST on July 10, 2010
MAH SING Group Bhd has bought three parcels of land in Puchong, Sg Buloh and Bukit Jelutong in Selangor to build residential, commercial and industrial properties worth RM1.1 billion.
The first parcel of land, opposite the Kinrara Golf Club in Puchong, is to develop residential properties.
Mah Sing said in a statement yesterday that the project, dubbed Kinrara Residence, has an estimated gross development value (GDV) of RM730 million.
The second parcel, which is adjacent to the Rubber Research Institute land in Sg Buloh is for a commercial project, known as Star Avenue, worth RM280 million.
In Bukit Jelutong, Mah Sing will build i-Parc 3, an industrial project worth RM82 million, which is a continuation of its i-Parc brand.
Mah Sing said the 3 parcels of land will reinforce its strength as one of the few local developers to offer a complete range of properties in its stable, namely residential, commercial and industrial.
With the new land acquired, Mah Sing has projects with remaining GDV and unbilled sales of about RM7.5 billion in the Klang Valley, Penang Island and Johor Baru.
Some 59 per cent of the projects are residential properties. Commercial and industrial make up 36 per cent and 5 per cent respectively.
Mah Sing said the landbanks will keep it busy for some 6 years.
This year alone Mah Sing has acquired new projects worth RM1.9 billion for building works stretching to 2011 and beyond.
"We are pleased that our performance has been acknowledged with our most recent award, the inaugural The Edge Billion Ringgit Club awards where we were named recipent for Highest Compound Returns to Shareholders over 3 years," it said.
-ends-
Subscribe to:
Posts (Atom)