Wanted: Land in Iskandar region
By THE STAR
MAH Sing Group Bhd chief executive Datuk Leong Hoy Kum said the time was right to “strike” and that the company was in the process of raising capital to fund the expansion of its property division.
Leong said the combination of Government support, better economic times as well as an “air of optimism” in the property sector, especially in the Iskandar Development Region (IDR) has made Mah Sing proactive in looking for more land in south Johor and Kuala Lumpur.
“We plan to acquire more prime land that Mah Sing can value-add to by building niche and high-end commercial and residential houses. The IDR has definitely caught our interest because of the region's high growth potential,” he said.
The company currently has just over 500 acres of land bank but Leong said it was never the policy of the company to buy huge parcels of land.
“We are more interested in quality land in good location with good capital gains and high yield potential,” he noted.
Leong said Mah Sing was no stranger in south Johor.
The property developer has been developing residential homes in the area since 2000, including Austin Perdana in Tebrau.
Mah Sing's other property projects include Hijauan Residence (Cheras), Duta Perdana (Puchong), Kemuning Residence (Shah Alam), Sri Pulai Perdana (Skudai), Sierra Perdana (Tebrau-Plentong) and a commercial project in Mount Kiara.
An analyst with CIMB Securities said Mah Sing was unique due to its quick “turnaround model” which allowed the company to register quicker return on equity, compared with most of the other property developers.
He said most property developers had target prices pegged to their revised net asset value, however, this was not the case with Mah Sing.
“For Mah Sing, we have tagged a 20% discount to the targeted property sector price earnings of 18 times to reflect the company's strong earnings growth and consistent ability to secure strategically located land bank at reasonable prices,” he said.
Mah Sing reported a return on equity (ROE) of 21%, which made the company one of the best performers among property developers (in terms of ROE).
Another property developer that has a firm footing in the IDR is Mulpha International Bhd.
Executive chairman Lee Seng Huang said the company's Leisure Farm Resort in south Johor would benefit from the strong Government support and allocation under the Ninth Malaysia Plan to develop the IDR.
“We believe Leisure Farm Resort will present itself as one of the prime residential areas in the region,” Lee said, adding that over the years, the company had dedicated a lot of effort to unlock values in the Malaysian property market.
He said Mulpha was pleased that its Leisure Farm Resort development had started to produce results from years of hard work.
Lee said Mulpha also had sizeable land bank, especially in Gelang Patah, Johor, with over 700 acres of land there yet to be developed.
“Mulpha’s concept is only to build when the time is right and not just build for the sake of earning revenue,” he noted.
Other property developers that have a presence in south Johor include SP Setia Bhd, UEM Land Sdn Bhd (the property unit of UEM World Bhd) and Gamuda Land Bhd.
UEM Land and Gamuda Land have formed a 50:50 partnership to jointly develop Horizon Hills, which has 12 precincts worth RM2.6bil in Nusajaya.
The Horizon Hills project would be the residential nucleus of Nusajaya, one of the five key flagship zones for other developments in the IDR.
UEM World managing director and chief executive officer Datuk Ahmad Pardas Senin said: “We hope the first phase – The Gateway - scheduled to be completed by year end will act as a catalyst to further accelerate other developments in the IDR.
“The township will consist of 5,787 housing units, an 18-hole golf course, a signature resort club and themed gardens,” he said.
Gamuda group managing director Datuk Lin Yun Ling said the township would be developed in 11 phases and would take eight to nine years to complete.
An official spokesperson from SP Setia said the company had purchased huge land parcels in south Johor before the Asian financial crisis in 1997.
She said SP Setia was now benefiting from the upswing in property demand and property appreciation in south Johor as a result of the Government’s initiatives to make the region an economic powerhouse.
“Many of SP Setia's property development projects there have now been revived,” she said.
Monday, July 2, 2007
UEM Land: Nusajaya will come to life by 2011
UEM Land: Nusajaya will come to life by 2011
By KANG SIEW LI
UEM Land Sdn Bhd, the property unit of builder UEM World Bhd, forecasts its flagship Nusajaya project in South Johor to reach critical mass by 2011, a point where each of its seven signature developments become self-sustaining and would be feeding off each other.
The 9,720ha Nusajaya boasts of seven signature, or "catalyst", developments, including the all-new Johor state administrative centre, a medical city, a waterfront precinct named Puteri Harbour and the Southern Industrial and Logistic Clusters (SILC).
"Right now, our main task is to put Nusajaya on the world map. But by 2011, that's when Nusajaya would come to life as a regional city," UEM Land managing director Wan Abdullah Wan Ibrahim told Business Times in an interview.
The pace to develop Nusajaya has been accelerated with the setting up of the Iskandar Regional Development Authority (IRDA), a body responsible in carrying out the development of Iskandar Development Region (IDR), which encompasses Nusajaya.
The IRDA this week announced a slew of incentives to attract investors to the IDR.
Since taking the helm at UEM Land in January 2006, Wan Abdullah has spent most of his time making sure projects in Nusajaya get off the ground.
He expects that among the projects completed by 2011 include a private marina with an immigration and Customs checkpoint, a hospital, a convention centre, the retail section along the waterfront and the Johor state administrative centre, of which the latter will have a working population of some 6,000.
"The SILC industrial park will also probably be fully sold and several university campuses (will be) opened," he added.
The year 2011 will also be one when UEM Land is poised to break RM1 billion per year in revenue. It registered a revenue of RM453 million last year.
"For the next five years we expect to report combined revenue of some RM6 billion. That's because a lot of projects are still in the implementation and construction stages.
"But by 2011, we hope to be ranked in the annual billion dollar club in terms of revenue," he said.
Wan Abdullah believes that now is the time for prospective buyers and investors to buy properties in Nusajaya.
Already, prices of properties in Nusajaya are at a premium to the rest of Johor, but still below Kuala Lumpur's rates.
"However, when the (seven) catalyst developments are all in place, it (price of properties in Nusajaya) could surpass Kuala Lumpur's property prices. That's when we will be comparing our rates to Singapore's (properties) rather than that of Kuala Lumpur's," he said.
Meanwhile, UEM Land will raise up to RM2 billion over the next three years to finance its Nusajaya project.
It plans to raise the funds in three tranches, all of which will be initiated this year.
The first tranche covering RM270 million was announced on March 7, which will be used to finance one of its residential projects called Horizon Hills.
It expects to raise the amount through the sale of Islamic bonds in the next two months.
The second tranche of RM1 billion was announced on March 23 by UEM World Bhd managing director and chief executive officer Datuk Ahmad Pardas Senin.
The company plans to raise the money through the issuance of Islamic financial instruments by the third quarter of this year to fund its ongoing work in Nusajaya.
"The third and final tranche of the fund-raising, totalling RM700 million, will be used to finance the second and third phases of the Johor state administrative centre in the development," said Wan Abdullah.
The property developer expects to generate a gross development value of RM4.3 billion from the Nusajaya project.
By KANG SIEW LI
UEM Land Sdn Bhd, the property unit of builder UEM World Bhd, forecasts its flagship Nusajaya project in South Johor to reach critical mass by 2011, a point where each of its seven signature developments become self-sustaining and would be feeding off each other.
The 9,720ha Nusajaya boasts of seven signature, or "catalyst", developments, including the all-new Johor state administrative centre, a medical city, a waterfront precinct named Puteri Harbour and the Southern Industrial and Logistic Clusters (SILC).
"Right now, our main task is to put Nusajaya on the world map. But by 2011, that's when Nusajaya would come to life as a regional city," UEM Land managing director Wan Abdullah Wan Ibrahim told Business Times in an interview.
The pace to develop Nusajaya has been accelerated with the setting up of the Iskandar Regional Development Authority (IRDA), a body responsible in carrying out the development of Iskandar Development Region (IDR), which encompasses Nusajaya.
The IRDA this week announced a slew of incentives to attract investors to the IDR.
Since taking the helm at UEM Land in January 2006, Wan Abdullah has spent most of his time making sure projects in Nusajaya get off the ground.
He expects that among the projects completed by 2011 include a private marina with an immigration and Customs checkpoint, a hospital, a convention centre, the retail section along the waterfront and the Johor state administrative centre, of which the latter will have a working population of some 6,000.
"The SILC industrial park will also probably be fully sold and several university campuses (will be) opened," he added.
The year 2011 will also be one when UEM Land is poised to break RM1 billion per year in revenue. It registered a revenue of RM453 million last year.
"For the next five years we expect to report combined revenue of some RM6 billion. That's because a lot of projects are still in the implementation and construction stages.
"But by 2011, we hope to be ranked in the annual billion dollar club in terms of revenue," he said.
Wan Abdullah believes that now is the time for prospective buyers and investors to buy properties in Nusajaya.
Already, prices of properties in Nusajaya are at a premium to the rest of Johor, but still below Kuala Lumpur's rates.
"However, when the (seven) catalyst developments are all in place, it (price of properties in Nusajaya) could surpass Kuala Lumpur's property prices. That's when we will be comparing our rates to Singapore's (properties) rather than that of Kuala Lumpur's," he said.
Meanwhile, UEM Land will raise up to RM2 billion over the next three years to finance its Nusajaya project.
It plans to raise the funds in three tranches, all of which will be initiated this year.
The first tranche covering RM270 million was announced on March 7, which will be used to finance one of its residential projects called Horizon Hills.
It expects to raise the amount through the sale of Islamic bonds in the next two months.
The second tranche of RM1 billion was announced on March 23 by UEM World Bhd managing director and chief executive officer Datuk Ahmad Pardas Senin.
The company plans to raise the money through the issuance of Islamic financial instruments by the third quarter of this year to fund its ongoing work in Nusajaya.
"The third and final tranche of the fund-raising, totalling RM700 million, will be used to finance the second and third phases of the Johor state administrative centre in the development," said Wan Abdullah.
The property developer expects to generate a gross development value of RM4.3 billion from the Nusajaya project.
Talam close to reaching deal with house owners
Talam close to reaching deal with house owners
By FRANCIS FERNANDEZ
TALAM Corp Bhd, once the country's biggest builder of low-cost homes, is close to reaching an agreement with property owners of its RM2.2 billion Puncak Jalil township to waive late ascertained damages (LAD), people directly involved in the matter said yesterday.
Launched in 2001, the Puncak Jalil township is being built on 324.3 hectares of land in Bukit Jalil, and is Talam's single biggest project so far.
As at last year, sales from Puncak Jalil stood at RM1.64 billion with some 9,309 properties sold.
However, more than 6,000 units, comprising residential and commercial houses, remain undelivered.
Property owners who spoke on condition of anonymity told Business Times they received notification from Talam's unit Maxisegar Sdn Bhd for a waiver of which some of it are for three-year-old LADs.
As part of the deal, IJM Corp Bhd, the country's third largest builder by revenue, will undertake to complete the remaining portion of the project.
The LAD is a major challenge for Talam, as out of the group's RM896.3 million outstanding debt, about RM500 million is backed by receivables on the sale of houses in Puncak Jalil.
Repayment on the asset-backed securitisation is due February next year.
In 2004, Maxisegar opted for a three- to four-year tenure of RM250 million Islamic debt to finance the project, but due to a series of labour shortages and material price increases, the project came to halt in late 2005.
Subsequently, Malaysian Rating Corp Bhd in January 2006 cut the rating of Maxisegar by six levels to BB from A, which defaulted two months later, but by June in the same year the default was withdrawn.
A month before the default withdrawal, the major stakeholders in Talam's parent Kumpulan Europlus Bhd (K Euro) signed an agreement with IJM Corp, to sell up to 30 per cent of K Euro for 28 sen a share.
The share sale deal between IJM and K Euro was agreed upon, when the Talam parent was still in the midst of finalising the West Coast highway project linking Banting to Taiping.
Formalisation of the agreement had been delayed seven times, pending the finalisation of the highway project award.
But with the Government giving the go-ahead last week, it should pave the way for IJM to gain control of K Euro.
IJM has stated before that among the main priorities upon gaining control of K Euro is to address the financial problems of Talam.
For its nine-month to August 2006, Talam's net loss narrowed to RM14.57 million from RM267.49 million a year earlier, while revenue fell 23.25 per cent to RM228.24 million from RM297.4 million.
By FRANCIS FERNANDEZ
TALAM Corp Bhd, once the country's biggest builder of low-cost homes, is close to reaching an agreement with property owners of its RM2.2 billion Puncak Jalil township to waive late ascertained damages (LAD), people directly involved in the matter said yesterday.
Launched in 2001, the Puncak Jalil township is being built on 324.3 hectares of land in Bukit Jalil, and is Talam's single biggest project so far.
As at last year, sales from Puncak Jalil stood at RM1.64 billion with some 9,309 properties sold.
However, more than 6,000 units, comprising residential and commercial houses, remain undelivered.
Property owners who spoke on condition of anonymity told Business Times they received notification from Talam's unit Maxisegar Sdn Bhd for a waiver of which some of it are for three-year-old LADs.
As part of the deal, IJM Corp Bhd, the country's third largest builder by revenue, will undertake to complete the remaining portion of the project.
The LAD is a major challenge for Talam, as out of the group's RM896.3 million outstanding debt, about RM500 million is backed by receivables on the sale of houses in Puncak Jalil.
Repayment on the asset-backed securitisation is due February next year.
In 2004, Maxisegar opted for a three- to four-year tenure of RM250 million Islamic debt to finance the project, but due to a series of labour shortages and material price increases, the project came to halt in late 2005.
Subsequently, Malaysian Rating Corp Bhd in January 2006 cut the rating of Maxisegar by six levels to BB from A, which defaulted two months later, but by June in the same year the default was withdrawn.
A month before the default withdrawal, the major stakeholders in Talam's parent Kumpulan Europlus Bhd (K Euro) signed an agreement with IJM Corp, to sell up to 30 per cent of K Euro for 28 sen a share.
The share sale deal between IJM and K Euro was agreed upon, when the Talam parent was still in the midst of finalising the West Coast highway project linking Banting to Taiping.
Formalisation of the agreement had been delayed seven times, pending the finalisation of the highway project award.
But with the Government giving the go-ahead last week, it should pave the way for IJM to gain control of K Euro.
IJM has stated before that among the main priorities upon gaining control of K Euro is to address the financial problems of Talam.
For its nine-month to August 2006, Talam's net loss narrowed to RM14.57 million from RM267.49 million a year earlier, while revenue fell 23.25 per cent to RM228.24 million from RM297.4 million.
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