Hap Seng Consolidated Bhd on Fridaytoday signed an agreement with CapitaLand Limited and Amsteel Corporation Bhd to acquire their entire shareholding in Inverfin Sdn Bhd.


The acquired shares represent a 50 percent stake in Inverfin, which in turn owns Menara Citibank, a 50-storey office building in the Kuala Lumpur City Centre.

Hap Seng's group managing director Datuk Edward Lee Ming Foo said the acquisition will be funded by new bank borrowings and internally generated funds.

The group has proposed to obtain bank borrowings for up to RM200 million to finance the proposed acquisition, he said in a statement today.

The acquisition consideration of the Inverfin shares from CapitaLand and Amsteel is based on 50 percent of the net asset value of Inverfin as at June 30, 2009, taking into consideration the agreed property value of Menara which is fixed at RM607,448,952.

With the acquisition, the gearing ratio of Hap Seng is expected to increase marginally from 1.06 to 1.14 based on its audited accounts as at Dec 31, 2008.

According to Lee, the demand for prestigious office space in the heart of the Golden Triangle has not waned despite the global economic downturn.

"Based on our experience in the market, we expect demand to remain robust, if not improve, while supply is naturally kept limited in super-prime areas such as these," he said.

Menara Citibank sits on a parcel of freehold land measuring 12,700 square metres and has a net rentable area of 68,000 square metres.

"The unique propositions of Menara Citibank offer both the potential for rental growth as well as capital appreciation," Lee said.

"This will bode well for our group in terms of sustained recurring income and long-term value for our property holding and development division," he said.

-- Bernama

The second phase of the mixed development project dubbed 'The Atmosphere' will be launched on Saturday.


EXPORT-ORIENTED plywood producer Eksons Corp Bhd (9016) expects its maiden property project in Seri Kembangan, Selangor, to be close to RM1 billion in gross development value (GDV) over five years.

Eksons, listed on Bursa Malaysia's main market and records about RM300 million revenue per year, owns 60 per cent of the mixed development project dubbed "The Atmosphere".

Tempo Properties Sdn Bhd, a Seremban-based boutique property developer, holds the remaining 40 per cent of the project sprawling some 20.23ha, its location considered as "the heart of the Golden Triangle of southern Klang Valley".


"We are scouting for more (property) projects with Tempo," Eksons director Tang Seng Fatt told a news briefing yesterday on The Atmosphere's second phase that will be launched on Saturday.

Eksons specialises in the manufacturing of tropical thin plywood and operates two factories in Sibu and Tawau, with a combined capacity of 285,000 tonnes per year.

Over 90 per cent of the company's output is exported mainly to the US, the Middle East, North America, North Africa, Taiwan and South Korea.

Tempo, meanwhile, has been involved in property development for more than 10 years. Its projects include Taman Cengal Utama, Taman Prima Tropika and Medan Suria in the Klang Valley.

Tempo chief executive officer Khoo Boo Hian said the second phase of The Atmosphere is expected to generate a GDV of RM300 million and will be ready in two years.

Its third phase, due to kick off in 2011 or 2012, is expected to churn out RM600 million in GDV.

Eksons and Tempo Properties have secured RM23.5 million from the sale of its first phase covering 3.64ha that will entirely be occupied by the Giant hypermarket.


(Location map - click on it to see larger image)

The Atmosphere is marketed as the premier lifestyle commercial development.

"It will be a hub for culture, nature, lifestyle and community for people from different walks of life," Khoo said.

Phase Two is divided into five themed segments with a total of 136 units of shopoffice, designer SOHO (small office home office) suites, boulevard shops and retail outlets.

The units are priced from RM860,000 onwards.

MALAYSIAN property group Sunway City may revive a US$860 million plan to float its property assets via a REIT next year when market conditions recover, a top company executive said today.


“We will certainly go forward with the REIT. The only question is the right timing,” said Ngeow Voon Yean, managing director for property investment at Sunway City.

The listing plan will see Sunway City, Malaysia’s sixth-largest developer by market value, injecting its retail property assets such as shopping malls, hotels and theme parks into an investment trust.

The listing plan was stalled earlier this year after the global financial crisis, triggered by the U.S. subprime mortgage crisis, caused sharp falls in world stock markets.

“These few months will be a good signal to see where we are heading but frankly, whatever we are looking at will be next year,” Ngeow told Reuters in an interview.

Sunway may also revive a project worth “a few hundred million ringgit” to build an office tower later this year, to tap low interest rates and falling building material prices, Ngeow said.

Source from bernama.com.my

UEM Land Holdings Bhd expects growth for its Nusajaya township to start gathering momentum from 2011 as more infrastructure and other projects near completion.


Managing director Wan Abdullah Wan Ibrahim said the year would mark the starting point for many large-scale projects in Nusajaya.

At the same time, work on other major projects would also be done by then.

Among the projects that would be completed by 2011 are the coastal highway linking Johor Baru, quarters for state government staff and the federal government agency complexes.

The Legoland theme park would also be in its finishing stage.

"The tipping point for growth to spurt in Nusajaya would be in 2011. That is when a new pace of development begins and the environment in Nusajaya and Iskandar Malaysia would pick up pace," said Wan Abdullah during a question-and-answer session after a briefing on projects under Iskandar Malaysia.

Housing and Local Government Minister Datuk Kong Ho Cha, who was on his first visit to Nusajaya with his deputy Datuk Lajim Ukin were among those at the briefing in Nusajaya, near Gelang Patah, Johor.

Also present were Iskandar Regional Development Authority chief executive officer Harun Johari and Iskandar Investment Bhd managing director Arlida Ariff.

Wan Abdullah said Nusajaya already has the volume in terms of residents as 11,000 houses in the township were already occupied.

Foreigners also make up almost two thirds of high-end homes such as the East Ledang project.

When asked about a public housing project which would cater to people working in the area, Wan Abdullah said the efforts would be made to ensure only qualified tenants would get the houses.

UEM Land Holdings is the developer of Nusajaya's main features such as the state administration complexes of Kota Iskandar, Puteri Harbour, Southern Industrial and Logistics Clusters and Alfiat Healthpark and residences.

Source from btimes.com.my

Some RM400 million worth of luxury properties are expected to be sold by the end of the three-day iProperty.com Expo "Luxury Collection", which features high-end properties locally and abroad.



About US$2 billion (RM7.08 billion) worth of luxury properties, award-wining townships and developments are being showcased by top local and foreign developers at the expo.

iProperty.com chairman Patrick Grove said two properties have already been sold by a local developer in the morning the expo started.

While Malaysia's property sector is not shielded from the global recession, he said, investors still see Malaysia as one of the cheapest in Asia to buy property.

"This is a testament of the strong Malaysian property market and is also indicative that luxury real estate everywhere is still, undoubtedly, a hot commodity," he said at the launch of the expo by Housing and Local Government Minister Datuk Seri Kong Cho Ha in Kuala Lumpur yesterday.

Also present was iProperty.com Group chief executive officer Ken Tsurumaru.

The luxury property exhibition, which ends tomorrow, is organised by iProperty.com, a subsidiary of the iProperty.com Group, which owns and operates property and real estate website and property magazine.

Grove said property prices in Malaysia's luxury segment have dropped between 10 per cent and 20 per cent since the start of the global economic crisis, while prices in the mass market have maintained or increased a little.

"But there are some indications since last month that prices are picking up.

"Traffic at our website shows that people are window-shopping but they have not made purchases yet," he said.

Last month, the company's website, iProperty.com Malaysia, registered the highest traffic of one million, up from 900 in May and 800 in April.

The average number of online visitors to its website last year was 750.

"This indicates that people's confidence is returning," he said.

This is the fifth year iProperty.com is organising the expo, which serves as an avenue for buyers and investors to expand their financial portfolio.

Grove said some 15,000 high net-worth individuals and institutional buyers from local and internati onal markets are expected to visit this year's expo, which showcases award-winning properties and luxury townships by Malaysia's top developers in high-growth areas such as Kuala Lumpur, Putrajaya, Petaling Jaya, Penang and Johor.

Luxury properties from key cities around the world including London, Sydney, Melbourne, Gold Coast, Brisbane, Perth and Singapore are also available.

The event, which is participated by 80 local and international developers and investment organisations, also features property and investment seminars covering various topics.

Source from btimes.com.my

Guocoland (Malaysia) Bhd (1503), the property arm of the Hong Leong group, will roll out the remaining properties, worth RM1.7 billion, at its Emerald Rawang township in Selangor over the next six to seven years.

The 400ha Emerald Rawang, divided into Emerald East and Emerald West, is a 50:50 joint venture (JV) between Guocoland and Hong Bee Land Sdn Bhd (HBL).

HBL is part of the diversified Hong Bee group, controlled by the low-profile Gan family.

Since the project started in 2001, some RM400 million of properties, comprising 1,300 double-storey link, semi-detached and detached houses, have been built and sold.


Guocoland executive director Chan Chee Meng said the joint-venture company has been busy developing the infrastructure, a nine-hole golf course, and clearing hills in the past 12 months.
“We are investing RM100 million to do that and works are nearing completion. We will speed up development of the properties after this, in line with demand,” Chan said at the launch of the Emerald sales gallery in Rawang, Selangor, yesterday.
The project offers double-storey link, semi-detached, detached and cluster homes, totalling 3,700 units.
From now until December, the joint-venture company will launch two phases each in Emerald East and Emerald West, with houses worth more than RM100 million, Chan said.
There will also be a Chinese school and shoplots, which will be ready by 2011 or 2012.

HBL is also forming a joint venture with the Jusco group to set up a departmental store and hypermarket at Emerald Rawang, which will open at around the same time.

“We are optimistic of positive sales. The economy is recovering, interest rates are low and there is high demand for gated and guarded housing. Our project has key attributes such as freehold status, modern designs and the golf course.
“Our houses are also affordable. A semi-detached house at the township is worth around RM500,000, while the same product in Klang, Subang or Puchong could cost around RM1 million,” Chan said.

He added that depending on demand, the joint-venture company may buy pockets
of land nearby to develop the township further.

Source from btimes.com.my

The slew of property launches and speedy take-up rates lately are signs that the local (property) sector is on a quick rebound from the global economic downturn.

In its latest report, HwangDBS Vickers Research said the local high-end property sector had been on an uptrend, with developers raking in quick profits from project launches.

Among them were DNP Bhd’s Verticas condominiums in Bukit Ceylon, Kuala Lumpur, which saw 60% of the 50 units soft launched being taken up.

En bloc buyers also snapped up 93% of non-bumiputra units launched (last month) at IJM Land Bhd’s Light Linear project in Penang.



“We see demand for high-end units returning, which could re-rate the sector,” said HwangDBS.

It also highlighted Eastern & Oriental Bhd’s St Mary serviced apartments in Kuala Lumpur (launched in June, 80% take-up in five days) and SP Setia Bhd’s Sky Residences condominiums in KL (previewed in September 2008, with an average 70% take-up so far).

“Developers are more confident now to resume launches, which should lead to faster earnings recovery. Selling prices may soon be raised and incentives gradually pulled back, resulting in margin expansion for developers,” HwangDBS said.

An analyst from a local bank-backed brokerage said the take-up rates were not surprising, given the developers’ good reputation.

“These developers aren’t your fly-by-night type of developers. They have very good reputation and solid track record. The average investor or house-buyer is more likely to park his money with a well-known developer, knowing that his money would be safe,” he said.

Another analyst said the property sector was making a comeback in the region. In the last few months, Hong Kong, Singapore and China had seen strong surges in property demand, she said.

“There’s so much liquidity with nowhere to go. This is one of the safest ways to fight inflation. Putting your money in the bank basically means being eaten up alive by inflation.

“Malaysian property is generally still very affordable. If you don’t buy one now, it will be even more difficult to afford it next time. The 2% interest you get from banks is nothing,” she noted.

HwangDBS also highlighted the Malaysia Property Inc, a joint public-private sector initiative aimed to attract foreign investments worth RM20bil in the domestic real estate sector over the next 10 years.

“The recent liberalisation measures (abolishment of local equity ownership requirement for mergers and acquisitions and Foreign Investment Committee approvals) should help boost both foreign and local demand for Malaysian properties.

“Previous policy changes (waiver of real property gains tax and monthly EPF withdrawals) introduced just before the financial crisis have yet to be fully felt and could be strong catalysts during a recovery,” it said.

Source from thestar.com.my