Equine plans high-end project

SERI KEMBANGAN: Property developer Equine Capital Bhd is proposing to acquire 108.4ha with an estimated gross development value (GDV) of RM700mil in Batu Kawan, Penang.

The acquisition of the land, for high-end property development, will be funded by internally generated funds and external borrowings.

“We are negotiating with state authorities to expedite the purchase of the land,” Bernama quoted chairman Datuk Seri Tengku Ahmad Shah as saying after the company AGM yesterday.

Equine currently has a total land bank of 141.2ha in Seri Kembangan, Cheras and Batu Kawan, with an estimated GDV of RM1.1bil.

”We are on the look out to acquire land banks in Selangor and Negri Sembilan,” Tengku Ahmad Shah said, adding that its current land bank was sufficient for the company’s property business for the next five to 10 years.

He said Equine would launch several commercial and residential properties this year, with a GDV of RM300mil, mainly in Seri Kembangan, Cheras and Batu Kawan.

He said the development would include three- and four-storey shop lots and landed residential properties.

“We are projecting a growth for our current and future financial years,” Tengku Ahmad Shah said, adding that the company, as at March 31, 2009, had unbilled sales totalling RM70mil.

It posted a pre-tax loss of RM43.75mil for the financial year ended March 31, 2009 as turnover dropped 21% to RM86.083mil.

Tengku Ahmad Shah said Equine Capital would continue to dispose off its non-core business and assets to concentrate on property development.

It planned to sell Wisma KLIH in Bukit Bintang, which was valued at RM35mil, two years ago.

Meanwhile, Equine in a filing with Bursa Malaysia said it had signed a sales and purchase agreement to acquire a 15.88-acre piece of leasehold land in the district of Petaling from Jelang Puncak Sdn Bhd for RM47.4mil.

It planned to develop 156 units of two- and three-storey shopoffices with an estimated gross development value of RM127mil and a gross profit of RM18mil.

It added that the project would commence at the end of next year and was targeted for a mid-2012 completion.

By The Star

Taman Equine buying land in Selangor

EQUINE Capital Bhd's wholly-owned Taman Equine (M) Sdn Bhd is buying a piece of land near Equine Park in Petaling, Selangor, for RM47.4 million, to turn it into a commercial centre.

It will acquire the 64,303 sq m land from Jelang Puncak Sdn Bhd. The land is presently used for recreation and equestrian activities.

In a filing to Bursa Malaysia yesterday, Equine said it plans to build 156 units of two- and three-storey shop offices there, with an estimated gross development value of RM127 million and a gross profit of RM18 million.

The development cost is estimated at RM109 million and will be funded via bank borrowings and internally generated funds.

Development is expected to start by end-2010, with completion in mid-2012.

By Business Times

Mah Sing Q2 net profit falls 38pc year-on-year

Property developer Mah Sing Group Bhd posted a 38 per cent drop in its fiscal second-quarter net profit from a year ago, as last year's gain was boosted by a large property sale.

Its net profit was RM23 million in the quarter to June 30 2009, which is a slight improvement compared to first-quarter net profit of RM22.6 million.

"The group believes the property market is gaining momentum for a likely up cycle in the second half of 2010," Mah Sing said in a statement to Bursa Malaysia yesterday.

The company's revenue for the second quarter was RM167.2 million, down from RM195.4 million a year ago.
Sales for the period were driven by residential property projects like Kemuning Residence, Hijauan Residence and Aman Perdana in the Klang Valley, and Sierra Perdana and Austin Perdana in Johor Baru.

For the first six months, Mah Sing made a net profit of RM45.7 million against RM59.6 million in the same period a year earlier.

Revenue was down 5.5 per cent to RM317.5 million.

However, the company has made sales of RM543 million in the first seven-and-a half months this year, which is more than its full-year target. This was mainly due to the sale of a building in its Southgate project in Kuala Lumpur for RM226 million.

It has also yet to book RM818 million of sales of residential and commercial properties as at June 30 this year.

"The strong take-up for our projects is evidence that the property market is resilient, and niche products with good branding coupled with the right concepts and designs in prime locations will continue to do well," group managing director Tan Sri Leong Hoy Kum said in a separate press release.

By Business Times