Demand for homes in core central region may pick up

SINGAPORE: Some market watchers said demand for homes in the core central region could pick up as early as the second half of this year, as prices continue to moderate.

Property consultancy Savills added that some unsold units in the city were even transacted at below valuation.

According to recent marketing materials, Hijauan on Cavenagh is offering units at prices from as low as S$1,701 per square foot.

Located near Orchard Road, a 915 square foot two-bedroom unit is available for just under S$1.9 million.

Property agents said the 41-unit Hijauan project is about 75 percent sold.

It is not the only project selling below valuation.

Alan Cheong, research head at Savills Singapore, said: "We've heard of anecdotal evidence where pricing has been below valuations. In the Newton area for example, prices six months ago was S$1,800 per square foot.

"Today, you can get it for S$1,700 to S$1,600 per square foot for a 1,700 to 1,800 square-foot apartment.

"For core central region, it is probably going to be quite the norm -- (as) we expect more aggressive marketing strategies by developers."

In particular, analysts said the larger units will be a tough sell as cooling measures and loan curbs have affected the buyer's ability to afford them.

Savills said the pricing sweet spot for city homes now is probably between S$1.5 million and S$1.7 million.

Home prices in the core central region fell 1.9 percent in 2013 and some analysts expect to see another 5 percent drop this year. They said that could potentially trigger a return of buying interest for core central region homes.

Chris Koh, director of Chris International, said: "By middle of this year, we would have looked at four quarters of correction. Once the prices adjust by 5 to 10 percent, it would look significant.

"And the moment it looks significant, my gut feel is the buyers and investors who have been waiting on the sidelines will then pour back into the market again."

Market watchers said demand for city homes could also grow if prices of units in the city fringe, or rest of central region, continue to recover.

Home prices in the city fringe rose 0.4 percent in the fourth quarter of last year, compared to the 2.1 percent decline for city homes.

  

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The changing legal landscape of the property sector in 2014

Lawyer Khairul Anuar writes on the changing legal landscape of the property sector in 2014.

THE property sector received a big jolt when a few measures in Budget 2014 were implemented to put a brake on the overheated property market. It was said that too many people were buying properties in the hope of making fast cash by selling them immediately upon purchasing units from housing developers. Housing developers were said to be making loads of profit by packaging the houses they sell with the Developer Interest Bearing Scheme (DIBS). Banks also made a killing as DIBS needs their participation to be successful. Lines were snaking around the block at most residential property sales launches.

All these came to a halt when a few measures were introduced to the property market with 2014 as the starting point. Will the property sector experience a slowdown or, will it be business as usual? What is the new legal landscape for the property sector? DIBS or any such form of schemes where the housing developer helps the buyers to purchase the property contrary to how payments are supposed to be made as set out in the Sale and Purchase Agreement (SPA) in the Housing Development (Control & Licensing)Regulations 1989 are now prohibited.

Currently, housing projects that come with the new Development Order (DO) are prohibited from offering DIBS. Projects that are still offering DIBS are those that have obtained their DOs before DIBS was prohibited. Real Property Gains Tax (RPGT) is now raised to 30% for any property owner who disposes the property after holding it for less than three years; 20% for disposal between three and four years, and 15% for disposal between four to five years. Upon reaching the sixth year, RPGT will not be imposed on locals. Foreigners and companies will still have to pay 5% of the RPGT. It is a bit more than the tiered system of RPGT that was imposed before April 2007. Foreigners are not allowed to purchase properties below RM1mil.

There are rumours that this imposition is deferred until April 2014. However, there are states in Malaysia such as Penang which has imposed its own measures in restricting sales of properties to foreigners to above RM1mil. The amount imposed before this measure was implemented in Budget 2014 was RM500,000. Each state in Malaysia has its own threshold of sale to foreigners depending on the areas the houses are being built.

Other than the measures in Budget 2014, people should be aware of the highly awaited Strata Management Act 2013 which will supersede the Building and Common Property (Maintenance and Management) Act 2007. Gazetted last year but still awaiting all states in Malaysia to endorse it in order for it to be implemented, this will streamline the issuance of strata title by making it faster for an owner to obtain it from the housing developer. Besides this, it will impose higher penalties for non-compliance, put more responsibilities on the housing developer for the strata buildings and make sure the management of strata properties is more responsible.

>> Khairul Anuar is a practising lawyer who is also an author of books related to property law.

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IGB REIT Q4 earnings rise 7.6%

A file picture of shoppers in Midvalley Megamall. IGB REIT has reported a rise of 7.6% in its earnings for the fourth quarter ending Dec 31, 2013.

 KUALA LUMPUR: IGB REIT, which owns the Mid Valley Megamall and the Gardens Mall, saw its earnings rise 7.6% to RM158mil in the fourth quarter ending Dec 31, from RM146.9mil in the corresponding quarter a year earlier.

This put earnings per share at 4.63 sen, against 4.32 sen previously.

Revenue for the quarter came in RM114.3mil, up 11% from RM103mil previously. (The profit figure is higher than revenue figure because it includes unrealised gains from assets appreciation.)

IGB proposed a dividend 3.61 sen, amounting to RM123.9mil, and payable on Feb 28, 2014 to unit holders entitled to payment as at 4pm on Feb 18.

Year-to-date, IGB’s earnings rose 103.5% to RM311.9mil from RM153.3mil previously, as revenue totalled RM430.7mil – up 273.6% from the RM115.3mil before.

According to the management, the whopping increase was down mainly to the acquisition of investment properties by IGB REIT that was completed on Sept 20, 2012. Hence, the corresponding period-to-date only covered approximately 3.37 months while current period-to-date covered 12 months of financial results.

Moreover, a revaluation on Mid Valley Megamall and The Gardens Mall by Henry Butcher Malaysia put the market value of Mid Valley Megamall and The Gardens Mall as at Dec 31, 2013 at RM3.56bil and RM1.245bil respectively, from RM3.5bil and RM1.2bil.

IGB REIT said it expected 2014 to be a challenging year, and hence was cautiously optimistic that its financial performance for the year ending Dec, 31, 2014 would be satisfactory.

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UOA in share subscription agreement for land deal

An artist’s impression of UOA Development Bhd’s Bangsar South project. UOA Development has entered into a share subscription agreement with several parties for a land deal in Jalan Klang Lama.

KUALA LUMPUR: UOA Development Bhd has entered into a share subscription agreement with several parties for a land deal in Jalan Klang Lama.

In a filing with Bursa Malaysia yesterday, UOA Development said the agreement with Eureka Equity Sdn Bhd, Regenta Development Sdn Bhd, Lau Soon Woh, Mow Chooi Yoon and Kok Koek Hung involved the subscription of three million ordinary shares of RM1 each in Eureka at par by UOA and Regenta.

Eureka has pieces of land measuring about 1.2ha in Jalan Klang Lama valued at RM63.5mil.

The principal activity of Eureka, which is currently dormant, is property development.

Following the share subscription, UOA holds 59.99% stake in Eureka, Lau (10%), Mow (20%), Kok (10%) and Regenta (0.00002%).

UOA said the land was located approximately 1km from the federal highway and was near Mid Valley City and has a prominent frontage to Jalan Klang Lama.

The location of the land is also highly accessible.
“The land is ideal for condominium and commercial development.
“The proposed subscription allows the company to strategically expand its landbank in Kuala Lumpur that matches the fast turnaround strategy,” UOA said.
The company said the proposed subscription was expected to contribute positively to the future earnings of UOA following development of the land.
UOA said its management was optimistic about the prospects of the development of the land.
UOA is the developer of Bangsar South, a RM10bil gross development value integrated development on the former Kampung Kerinchi squatter colony.

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Felcra to kick off maiden property project

Bung: ‘Felcra is planning to bring in overseas investors from the United States and Asean.’ Picture shows FELCRA Chairman Datuk Bung Mokhtar Radin exchanging the MOU documents with Datuk Dr. Choo Yuen May after the signing ceremony between FELCRA and MPOB witnessed by Datuk Haji Ramlee Abu Bakar and Datuk Wan Mohammad Khair-il Anuar Wan Ahmad. – LOW BOON TAT/THE STAR

KUALA LUMPUR: Felcra Bhd expects the construction of its maiden premium mixed property development project in Jalan Semarak, Kuala Lumpur to begin in April and completed within the next three years.
Its chairman Datuk Bung Mokhtar Radin said Felcra had received approvals from the relevant authorities for the 1.8ha project, which would be carried out in two phases.
The project will comprise the group’s new headquarters – a 30-storey Wisma Felcra, condominiums and a shopping mall cum business centre.
The gross development value of the entire project was estimated at RM1bil, of which phase one would cost about RM400mil, Bung told a press conference after the signing of palm tissue culture technology transfer agreements between Felcra and the Malaysian Palm Oil Board (MPOB) yesterday.
He pointed out that Felcra was currently on a diversification mode with interest to expand into new businesses, apart from its traditional core plantation business in oil palm, rubber and paddy .
“This year Felcra is planning to bring in overseas investors from the United States and Asean to undertake joint ventures in its new business ventures and also the existing ones,” Bung added.
According to industry observers, Felcra seems to be seriously looking at diversifying into property development given its prime land bank in Kuala Lumpur and Langkawi, iron ore mining at its land bank in Kuala Lipis and downstream related businesses in the palm oil supply chain.

Bung who declined to comment on the group’s new businesses, however, said: “Most of these new businesses are part of our growth strategy going forward. We will reveal them in due time.”
On the proposed listing of Felcra or one of its non-plantation based subsidiaries, he said: “Apart from waiting for the Government’s approval, the group is still studying the prospect to list (on Bursa Malaysia). We also believe it is still not the right time to go for listing.”
Felcra currently has 260,000ha planted with oil palm, rubber and paddy. Of the total, 170,000ha is cultivated with oil palms.
Bung said Felcra would continue to expand its plantation operations by acquiring land bank either locally or abroad.
Felcra is also undertaking replanting of about 25,000ha this year.
“Our initial replanting cost is about RM150mil for oil palm, rubber and paddy,” added Bung.
Earlier, at the Felcra-MPOB signing ceremony, MPOB chairman Ar Datuk Wan Mohammad Khair-il Anuar said the pact with Felcra reflected MPOB’s commitment to assist industry players in setting up their own oil palm tissue culture facilities.
He said the use of superior oil palm clones in planting was a strategic approach to boost productivity through increasing the yield of oil and fresh fruit bunches.
  
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Orchard Hotel Shopping Arcade to be rebranded as Claymore Link mall

SINGAPORE: Orchard Hotel Shopping Arcade on Claymore Road will be undergoing renovation works and rebranded as a new family-friendly mall.
In a statement, CDL Hospitality Trusts (CDLHT) said the mall will be known as Claymore Link, and will be enhancing its retail offering, with supermarket retailer Cold Storage The Fresh Food People already selected as anchor tenant.
The S$25 million redevelopment is expected to take about 12 months.
Upon completion, the net lettable area ("NLA") will increase by approximately 10,000 sq ft.
Incremental rental income of Claymore Link is expected to be more than S$2.0 million on an annualised basis, translating into an estimated gross return on investment of more than 8.0 per cent.
Separately, CDLHT also announced its fourth quarter financial results, with a distribution per stapled security (DPS) of 2.92 cents for the fourth quarter.
This is an increase of 0.7 per cent compared to 2.90 cents a year ago.
Distribution per stapled security (DPS) for the full year amounted to 12.18 cents, down 3.1 per cent compared to 2012.
For the quarter under review, gross revenue climbed 2.8 per cent on-year to S$39.4 million.
Strong contribution from the group's Angsana Velavaru resort in Maldives more than offset the weakness in its Singapore portfolio.
Net property income improved 2.5 per cent on-year to S$36.5 million.
Going forward, the trust expects the completion of acquisition of its second Maldives resort Jumeirah Dhevanafushi in December 2013 to contribute positively to its financial performance. 

CNA/nd

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MRCB to announce REIT proposal this week

By Wei Lynn Tang of theedgemalaysia.com

KUALA LUMPUR: Malaysian Resources Corp Bhd (MRCB) is going to undertake a real estate investment trust (REIT) exercise sooner than thought, as sources noted that the company could look to announce a REIT proposal as early as this week. Talk of MRCB planning a REIT has been going on the past few months, as management said it is exploring options to rationalise its asset base and ease its debt load. Such options include the creation of a REIT as well as the disposal of its 30% interest in the Duta-Ulu Kelang Expressway (DUKE) concession. Imran Salim, chief operating officer, told The Edge weekly three weeks ago that the management had mapped out plans to monetise its assets and make MRCB a more property-centric entity. “We have quality income-generating assets and we are getting good yields out of them. If it happens, we would prefer to go to the market with at least a RM3 billion REIT, which is sizeable and possesses enough visibility to attract foreign investors,” says Imran. According to AmResearch, MRCB’s net debt stood at RM2.9 billion as at Sept 30, 2013, translating into a net gearing of 1.7 times. Meanwhile, for the first nine months of financial year 2013 (9MFY13), its interest expense or finance cost stood at RM126 million. For 9MFY13, MRCB reported a net loss of RM111.3 million on revenue of RM607.49 million. The net loss was largely attributed to the high finance cost, operationally. It, however, derived a profit of RM6.04 million from its associated companies. MRCB’s finance costs accounted for 20% of revenue in 9MFY13, compared with 8.5% in 9MFY12. Cash and bank balance had also decreased from RM644 million as at Dec 31, 2012 to RM473.8 million as at Sept 30, 2013. MRCB has taken steps to monetise its assets to address its debt position, as it divested its IT business under GTC Global Sdn Bhd to Telekom Malaysia Bhd for RM45 million earlier this month. AmResearch said that several “catalytic news flows” to lift MRCB’s balance sheet may kick in in the coming months, starting with asset monetisation of at least RM2 billion. “MRCB’s de-leveraging efforts would receive a significant kick if plans to recycle its debts via a REIT vehicle pan out. The stock is trading at a steep 45% discount to its revised net asset value (RNAV), and at a trough of price to book value of 1.4 times,” AmResearch said in a report last Wednesday. The research house stated that the immediate plans are to divest Platinum Sentral for about RM680 million, followed by Shell Tower and Ascott Residences. Such a move would transfer RM750 million of borrowings to the REIT, with realised gains of around RM380 million, it estimated. “MRCB is set to inject some of its prime office properties in KL Sentral with a total net lettable area (NLA) of nearly 1.3 million sq ft into a REIT, we believe,” AmResearch added. In the nearer term, Nu Sentral Mall at KL Sentral, in which MRCB has a 51% stake, is set to open by March. It is understood from AmResearch that pre-tenancy rates at about 80% have been filled. The mall has a NLA of 650,000 sq ft, with average starting rental ranges between RM9 and RM10 psf. MRCB’s merger with Nusa Gapurna Sdn Bhd last August involved the injection of landbank assets, including Subang Lang, 9 Seputeh and PJ Sentral Garden City Phase 1, which could effectively boost MRCB’s gross development value by close to RM6 billion, said AmResearch. “As such, a favourable outcome to PJ Sentral’s legal impasse will likely kick-start a fresh share price re-rating cycle for MRCB,” it said, pending the High Court’s judgement on the status of PJ Sentral which is currently under dispute with PKNS. AmResearch, which has re-initiated coverage on MRCB last week, has a “buy” call on the stock with a fair value of RM2.20, a 20% discount to its sum-of-parts (RNAV) estimate of RM2.75 per share. MRCB is 38.9% owned by the Employees Provident Fund, while Gapurna Sdn Bhd has a 12.5% stake. Free float of shares stands at 39.8%. This article first appeared in The Edge Financial Daily, on January 27, 2014. For more information on Building and Construction event, please visit www.asiapacificevents.com

Build PR1MA homes where needed, urge property experts

By Charlotte Chong of theedgemalaysia.com

KUALA LUMPUR: Perbadanan PR1MA Malaysia, a government body tasked to build affordable homes, should develop them in or near city centres where the demand is, say property consultants. “At the end of the day, location matters. People want to stay near their workplaces,” JS Valuers Research & Consultancy Sdn Bhd executive director Chan Wai Seen told The Edge Financial Daily by telephone. “Even though many seek to buy 1Malaysia Housing Programme (PR1MA) homes, they end up not buying them because the homes are not near where they work,” he said. To date, PRIMA homes are in Nusantara Prima, Johor Baru and Alam Damai, Cheras. Chan also said that the body needs to address the availability of loans to middle-class earners to buy PR1MA homes, among other issues. As at August last year, out of the 20,519 units that were approved by Perbadanan PR1MA’s board of directors, 31.7% are in city centres, including 4,636 units in Kuala Lumpur and 1,877 units in Kuching, Sarawak. However, Perbadanan PR1MA chief executive officer Datuk Mutalib Alias was reported as saying that the company is planning to launch more PR1MA housing projects in the Klang Valley as part of its 160,000-unit target by the end of this year. These units form part of the 500,000 to be rolled out by the company by 2018. To date, the company has approval from its board to build 45,000 homes across the country. To meet its 2013 target of building 80,000 homes by March this year, Mutalib said last Tuesday that the company hoped to get approval to build another 35,000 homes by the first quarter of this year. A property consultant who declined to be named said the government should look into acquiring old abandoned buildings in city centres with low plot ratio for developing PR1MA homes. He cited the proposed joint venture project between S P Setia Bhd and Tradewinds Corp Bhd on a 50:50 basis to build PR1MA homes in Cheras, which he deems “exciting”. Under the project, S P Setia and Tradewinds will redevelop the low-cost public housing scheme in Cheras involving Flat Sri Johor, Flat Sri Melaka, Flat Sri Pulau Pinang and the Taman Ikan Emas longhouses. “[Developers] can still make profits out of that [project] and benefit the middle-income earners instead of selling the tract of land to private developers,” he added. Mutalib said his company plans to launch 1,349 new landed PR1MA homes in Sungai Petani, Kedah within one to two months at an indicative price of between RM150 per sq ft and RM250 per sq ft — 20% lower than the market price. However, he noted that the company still needs to perform all the required due diligence before it can proceed with the development. Last Friday, the company signed a memorandum of understanding with the Kedah State Development Corp to identify strategic land in the state, and develop with SP Baiduri Sdn Bhd the construction of the PR1MA homes in Sungai Petani. This article first appeared in The Edge Financial Daily, on January 27, 2014.  For more information on Building and Construction event, please visit www.asiapacificevents.com

Pink Corner, TRC win bid for land in Sungai Buloh

By Shalini Kumar of theedgemalaysia.com

KUALA LUMPUR: Kwasa Land Sdn Bhd, a wholly-owned subsidiary of the Employees Provident Fund (EPF), named Pink Corner Sdn Bhd and TRC Land Sdn Bhd as the first two winning bidders under the bumiputera companies’ category to develop its RM50 billion Kwasa Damansara township in Sungai Buloh, Selangor. Pink Corner and TRC Land were successful in gaining a plot of land each in the proposed development. Pink Corner emerged as the highest bidder, quoting RM13.07 million or RM70 per sq ft for a 4.28-acre (1.73ha) plot of land in Kwasa Damansara, while TRC Land was the highest bidder for a 1.72-acre tract (0.69ha) at RM6.13 million or RM82 per sq ft. Kwasa Land said the land parcels were tendered on an “as is, where is” basis based on agriculture titles. Both land parcels were sold above the reserved price by 13% and 11%, respectively. Pink Corner is owned by Asiah Osman and Salasiah Mohd Said, with a 50% interest each. TRC Land is a wholly-owned subsidiary of TRC Synergy Bhd, with developments mostly in Johor, Negeri Sembilan and Selangor. “Both companies were part of a group of nine bidders that participated in the bids for the land that were advertised for sale to bumiputeras in August 2013 — specifically addressing the Bumiputera Economic Empowerment Council’s desire of “enhancing bumiputera equity ownership in the corporate sector as well as asset ownership”, said Kwasa Land in a statement yesterday. Kwasa Land has been identified by the government as one of the key players to support the call for bumiputera participation. The company said it is committed to support this call by targeting 35% of land sales to bumiputera companies. In a note to clients yesterday, JF Apex Securities deemed TRC Land’s bid price of RM82 per sq ft for the land fair as compared with nearby transacted land price where Mah Sing Group Bhd paid RM298 per sq ft for the Damansara Sentral project land last year. “While TRC has not decided on the final development plan on the land, we believe the group could undertake the development of serviced apartment in view of the small size of the land,” it said. Tenders for the first phase of Kwasa Damansara is expected to be called next month. The project is expected to generate RM50 billion in gross development value over the next 20 years. Over 150 developers have submitted their credentials during the pre-qualification exercise, but big names in the construction cum property development sector are slated as the frontrunners. IJM Corp Bhd, Sunway Bhd, WCT Holdings Bhd and Malaysian Resources Corp Bhd (MRCB) are thought to be the key developers for the project. Those who had land adjacent to the township, such as Tropicana Corp Bhd and government-linked companies/bumi developers such as UEM Sunrise Bhd and Glomac Bhd could also be potential winners. The Kwasa Damansara project, which will be situated on 2,330 acres (942.9ha) of land acquired from the Malaysia Rubber Research Institute, is to be developed into eight precincts. The development will consist of 42% residential properties, 11% commercial properties, 7% for mixed use, 11% for green and open space, 23% for infrastructure and 6% for community facilities. This article first appeared in The Edge Financial Daily, on January 28, 2014. For more information on Building and Construction event, please visit www.asiapacificevents.com

MRCB to announce REIT exercise and disposal of Duke

By Charles Yong of theedgemalaysia.com

KUALA LUMPUR: Malaysian Resources Corp Bhd (MRCB), which is expected to announce the injection of Platinum Sentral into Quill Capita Trust today, will also announce the disposal of its 30% stake in the Duta-Ulu Kelang Expressway (Duke) to Ekovest Bhd for RM228 million cash, sources said. Meanwhile, Ekovest is expected to announce a proposed rights issue to finance the purchase of 30% of Duke, the sources added. In an announcement on Jan 22, MRCB confirmed that its board of directors had on the day before “deliberated on the proposal to dispose of its stake in Duke.” It added that no agreement had been signed yet. A RM230 million sale price for the 30% stake translates into a RM767 million full valuation. A Kenanga Investment Bank note pointed out that this is in tandem with the valuation done by Ekovest’s independent valuer, BDO, of about RM647 million to RM700 million in October 2013. The sale is seen as a way for MRCB to reduce its debt and create recurring income. MRCB’s debt-to-equity ratio stood at 197% as at Sept 30, 2013. The new head of MRCB Datuk Mohamad Salim Fateh Din also has a different view on non-controlling assets and plans to hive off non-core businesses. The Duke highway has started to generate a healthy cash flow and has met its internal rate of returns. According to executives, it raked in some RM80 million in revenue in its first calendar year ended Dec 31, 2012. The other 70% of Duke is owned by Ekovest through Wira Kristal Sdn Bhd. Ekovest bought into Duke in May after it completed a share swap deal worth RM325.86 million with Wira Kristal. Under the deal, Ekovest issued 126.7 million new shares at RM2.57 each to the owners of Wira Kristal — Tan Sri Lim Kang Hoo (40%) and Datuk Haris Onn Hussein (60%). In December, Ekovest was appointed master contractor for phase 2 of Duke costing RM1.18 billion. The contract is expected to be completed at the end of 2016. Phase two will consist of two additional links, measuring nine km and seven km. The Duke highway currently stretches 18 km. In December 2012, the government extended the concession term for Duke by another 20 years to 2059 as part of the agreement to extend the expressway. The additional investment on the phase 2 of Duke and the resulting longer gestation period could be a reason for MRCB to divest its stake in Duke. Ekovest and MRCB are also 60:40 partners in the River of Life project via Ekovest-MRCB JV Sdn Bhd. This article first appeared in The Edge Financial Daily, on January 29, 2014. For more information on Building and Construction event, please visit www.asiapacificevents.com

Winning Kwasa Land bid a boost to TRC, say analysts

By Levina Lim of theedgemalaysia.com

KUALA LUMPUR: Winning the bumiputera companies’ category bid for the Employee Provident Fund’s (EPF) Kwasa Damansara township development will give TRC Synergy Bhd’s property segment a nice boost, say analysts.   “Over the last two years, property contribution has been relatively insignificant at 4-8% of (its) revenue. “However, this is set to increase significantly going forward given two key developments coupled with the recent Kwasa Damansara land acquisition,” said Alliance Research analyst Jeremy Goh. Revenue for TRC’s property development segment for the financial year ended Dec 31, 2012 (FY2012) stood at RM44.47 million, which accounted for 7.85% of total revenue. It is more than double that of RM18.95 million of property segment revenue recorded in FY2011. Meanwhile, construction activity — which accounted for 83.6% of total revenue in FY2012 — stood at RM473.4 million, 140% higher than FY2011. TRC owns properties in Sarawak, Johor, Selangor, and Negeri Sembilan. It was announced on Monday that Pink Corner Sdn Bhd, which has Tan Sri Azman Yahya as a director, and TRC Synergy’s wholly-owned subsidiary, TRC Land Sdn Bhd, were the first two winning bidders under the bumiputera companies’ category to develop part of the RM50 billion Kwasa Damansara township. Pink Corner was the highest bidder for 1.73 hectares of land at Lot 73535 in Mukim Sungai Buloh in Petaling district for RM13.07 million or RM70 per sq ft (psf), while TRC Land Sdn Bhd was the highest bidder for 0.695ha at Lot 73971 in Sungai Buloh in Petaling district for RM6.133 million or RM82 psf. According to JF Apex, the deal is good and gives a timely boost to TRC’s property division. “We deem the bid price of RM82 psf for the land fair compared to nearby transacted land price whereby Mah Sing paid RM 298 psf for the Damansara Sentral project land last year. “Whilst TRC has not decided on the final development plan on the land, we believe the Group could undertake the development of serviced apartments in view of the small size of the land,” said JF Apex Securities. Datuk Abdul Aziz Mohamad, executive-director of TRC Synergy told The Edge Financial Daily that it has no plans for the development of the piece of land it just won yet. “We also made a bid for the other piece of land [won by Pink Corner] but did not win,” he said. According to a filing search, Pink Corner shares its address with Symphony House Bhd and Symphony Life Bhd, and its directors include Azman Yahya, who is a major shareholder of both the listed companies. Kwasa Land said in a statement that both Pink Corner and TRC were part of a group of nine bidders that participated in the bids for the land that were advertised for sale to bumiputeras in August 2013. The sale of the plots of land was specifically meant to address the Bumiputera Economic Empowerment Council’s desire of enhancing bumiputera equity and asset ownership in the corporate sector, it said. This article first appeared in The Edge Financial Daily, on January 29, 2014.

 

BN government will pump RM1.25b into Penang projects this year

By Himanshu Bhatt, fz.com (contributor to theedgemalaysia.com)

GEORGE TOWN: Determined to demonstrate that it is not side-lining Pakatan Rakyat-held Penang, the Barisan Nasional (BN) federal government has decided to pump in some RM1.25 billion in projects in the state this year. Federal Action Council for Penang chairman Datuk Zainal Abidin Osman announced yesterday a slew of 19 new projects, mainly for traffic infrastructure and health, as well as a few for education, to commence this year. Zainal, who is also state Umno chairman, stressed that these new projects are in addition to 24 projects worth a total of RM5.1 billion that have already been completed in 2013 — including the 24km Second Penang Bridge. He said the RM4.5 billion bridge is scheduled for opening next month by Prime Minister and BN chairman Datuk Seri Najib Razak at a yet-to-be-determined date, following some final minor installations. “All these show that the federal government is not marginalising or neglecting the people of Penang,” he said at a press conference at the federal building here. “We are definitely concerned about improving the prosperity of Penangites.” The projects slated for this year include an RM400 million multi-storey block with space for 331 beds at the Seberang Jaya Hospital, an RM250 million new wing for women and children at the Penang Hospital, an RM205 million upgrading of the narrow road between Teluk Kumbar and the Penang International Airport, and an RM60 million new flyover in Batu Maung at the southern end of the Bayan Lepas Free Industrial Zone. Asked about the status of affordable housing projects under the federal PR1MA Corp Malaysia that were announced for Penang early last year, Zainal insisted that the projects are still on for implementation in next two years. He stressed that the issue of confirming the sites is not easy in view of limited available land in Penang. “In the process, we will have to get approval from the State Planning Committee (chaired by Chief Minister Lim Guan Eng). We therefore hope to get cooperation from the state government in this regard,” he added. Zainal said the federal government is certain to develop 10,000 units of houses through PR1MA, as announced by Najib, and another 10,000 by federal agencies like the Penang Regional Development Authority, UDA Holdings Bhd and JKP Sdn Bhd. Najib had on April 30 last year — five days before the last general election — announced 9,999 affordable housing units in Penang. On Aug 28, almost four months after the BN retained control of the country, PR1MA announced that 20,519 affordable homes will be built in Greater Klang Valley, Johor, Penang, Sabah,  and Sarawak. However, the Penang government has complained that its enquiries for details on the units in the state have failed to elicit response from PR1MA or the Urban Wellbeing, Housing and Local Government Ministry. For more stories, go to www.fz.com, the website for freedom of expression and fairness in articulation. This article first appeared in The Edge Financial Daily, on January 29, 2014.