By Sharen Kaur
Published in NST on May 5, 2014
Published in NST on May 5, 2014
Permodalan Nasional Bhd's (PNB) plan to merge three of its biggest property companies, including SP Setia Bhd, is to create a giant that can compete globally.
PNB, the country's biggest asset manager, is reportedly studying a proposal to consolidate SP Setia Bhd, Island & Peninsular (I&P) Sdn Bhd and Sime Darby Properties Bhd.
Its president and group chief executive Tan Sri Hamad Kama Piah Che Othman said recently the company is also looking at the feasibility of investing overseas.
He said all the research and preparations for an overseas venture have been completed.
"By consolidating the three companies, there will be more streamlining of businesses and operations. Except for I&P, the other two have international presence. As a single giant, it would be easier to buy more assets overseas, undertake major developments and expand earnings," an industry source told Business Times.
SP Setia has 1,913ha and 40 projects in five countries, with gross development value of more than RM70 billion, in addition to RM2.6 billion in cash.
Sime Darby Property has 7,600ha and is looking at another 7,520ha for future development. It has projects in Malaysia, Singapore, Vietnam, Australia and the United Kingdom.
I&P has 2,066ha, mostly in Selangor.
PNB has invested in more than 200 companies locally and has three properties in London and one in Australia.
Its funds under management are close to 80 per cent of the total net asset value of RM300.19 billion of the unit trust industry, according to latest regulatory statistics.
PNB is eyeing to manage RM500 billion worth of assets by 2020 by offering more value added and innovative products.
PNB, the country's biggest asset manager, is reportedly studying a proposal to consolidate SP Setia Bhd, Island & Peninsular (I&P) Sdn Bhd and Sime Darby Properties Bhd.
Its president and group chief executive Tan Sri Hamad Kama Piah Che Othman said recently the company is also looking at the feasibility of investing overseas.
He said all the research and preparations for an overseas venture have been completed.
"By consolidating the three companies, there will be more streamlining of businesses and operations. Except for I&P, the other two have international presence. As a single giant, it would be easier to buy more assets overseas, undertake major developments and expand earnings," an industry source told Business Times.
SP Setia has 1,913ha and 40 projects in five countries, with gross development value of more than RM70 billion, in addition to RM2.6 billion in cash.
Sime Darby Property has 7,600ha and is looking at another 7,520ha for future development. It has projects in Malaysia, Singapore, Vietnam, Australia and the United Kingdom.
I&P has 2,066ha, mostly in Selangor.
PNB has invested in more than 200 companies locally and has three properties in London and one in Australia.
Its funds under management are close to 80 per cent of the total net asset value of RM300.19 billion of the unit trust industry, according to latest regulatory statistics.
PNB is eyeing to manage RM500 billion worth of assets by 2020 by offering more value added and innovative products.
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