MRCB's property turnover to exceed 50% by next year

KUALA LUMPUR: Malaysian Resources Corporation Bhd (MRCB) expects turnover from its property division to exceed 50 per cent by next year as the construction of KL Sentral project gains momentum.

Saying that the property turnover to group's profits was between 30 and 40 per cent, OSK Research said the on-going projects in KL Sentral was progressing as planned with some ahead of schedule.

"Other than the on-going projects and an improving outlook for the property sector, MRCB is expected to launch its luxury condominium project later this year with an estimated gross development value (GDV) of more than RM800 million," it said.

The research house said MRCB has indicated that its joint venture partner, CMY Capital Sdn Bhd, had reaffirmed its commitment to kick-start the St. Regis Hotel & Residences project soon with an estimated GDV of RM1.5 billion.

In order to continue its legacy in the property sector, OSK Research said MRCB was eyeing several land parcels belonging to the Federal government as part of its landbank replenishment strategy.

It said the company's recent rights issue could be an indication that MRCB was close to sealing the deal.

"Although there is no firm timeframe on the deal, we believe the potential land acquisition could be a positive catalyst for the stock price," the research house said.

MRCB had hinted earlier it may acquire small parcels of federal land in the Kuala Lumpur city centre including the Brickfields area.

As at mid-day MRCB was traded flat at RM1.31.

By Bernama

E&O secures 50% sale from initial launch in Penang project

GEORGE TOWN: EASTERN & ORIENTAL BHD (E&O) has sold 50% of the units it put up for sale from the first block of the RM1.8 billion Quayside seafront luxury condominiums that was officially launched last Sunday.

The company had a soft launch of the first block, which comprises 298 units priced between RM765,000 for a one-bedroom unit to RM4.3 million for a penthouse unit, a month ago. Some 30% of the units were secured by interested buyers before last Sunday's official launch.

E&O had only expected to reach the 50% sales mark two months from the official launch of the first block. The RM1.8 billion development consists of seven blocks of condominiums, five of which are high-rise with 26 storeys and 298 units per block while two are low-rise with seven-storey blocks of 51 units each.

"We are well within our target and we expect interest and sales momentum to be stronger over the next two weeks, straddling the Chinese New Year holidays," said E&O executive director Eric Chan.

The project, which spans 21 acres (8.4ha) of prime seafront land is located within the Seri Tanjung Pinang development and positioned as an elite waterfront community like Australia's Sovereign Islands and Sentosa Cove in Singapore.

They offer a 270-degree view of the Andaman Sea, Gurney Drive and Batu Ferringhi beaches, with 60% of the units facing the sea and the rest hill and gardens.

The gated community featuring resort-style living offers buyers seven different design types and sizes, including the penthouse unit with a built-up area of 7,159 sq ft which comes with a private swimming pool.

The first block will be completed by 2013, while the entire Quayside project is expected to be completed within seven to 10 years.

By The EDGE Malaysia

Mah Sing buying Shah Alam land for iParc2

Mah Sing Group Bhd is buying a 7.7ha prime freehold land in HICOM Industrial Estate in Shah Alam, Selangor, for RM45.5 million cash.

The property developer plans to make it its latest industrial hub project, called the iParc2@Shah Alam, with a gross development value of RM143 million.

Mah Sing managing director and group chief executive Tan Sri Leong Hoy Kum said the land is in a mature neighbourhood with good connectivity and strong demand for industrial property.

"Since the launch of iParc@Bukit Jelutong, Selangor, in January, we have sold 40 units out of a total of 42 units. This acquisition is timely and strategic as we would like to cater to the pent-up demand for this product," Leong said in a statement.
Under the deal, the property developer's wholly-owned subsidiary, Multi Synergy Group Sdn Bhd, signed a deal with Quill Industrial Properties Sdn Bhd for RM45.5 million or about RM54.45 per sq ft.

iParc2@Shah Alam will offer three-storey semi-detached factories with layout flexibility options priced from RM2.5 million each, with the smallest unit at about 5,400 per sq ft.

The main target market will be local companies looking to integrate their corporate headquarters with operations and warehousing facilities as well as multinational corporations from various industries.

The site is strategically located at the confluence of major highways leading to all major locations and key logistic ports and airports.

Together with iParc2@Shah Alam, the group has projects with remaining GDV and unbilled sales of about RM5.8 billion in the Klang Valley, Penang and Johor Baru.

As at December 31 2009, the group has RM400 million cash and zero net gearing.

By Business Times

Mah Sing unit to buy land for RM45.5m

PETALING JAYA: Mah Sing Group Bhd’s wholly owned unit Multi Synergy Group Sdn Bhd yesterday signed an agreement to acquire 7.67ha of freehold industrial land in Hicom Industrial Estate, Shah Alam, from Quill Industrial Properties Sdn Bhd for RM45.5mil cash.

Mah Sing said in a statement yesterday that the land, priced at RM54.45 per sq ft, would be developed into iParc 2@Shah Alam, an industrial development with an estimated gross development value of RM143mil.

Group managing director-cum-group chief executive Tan Sri Leong Hoy Kum said the project would be a low-density industrial park for hi-tech industries, logistics warehousing and service facilities.

“The main target market will be local companies looking to integrate their corporate headquarters with operations and warehousing facilities as well as multinational corporations from various industries.

“Based on preliminary plans, iParc 2@Shah Alam will offer three-storey semi-detached factories with layout flexibility options priced from RM2.5mil. The built-up for the smallest units will be about 5,400 sq ft,” Leong said.

The development, spanning three years, is scheduled to begin in the second half of this year.

By The Star

PHB to spend RM182m on green complex in Putrajaya

PUTRAJAYA Holdings Bhd (PHB) will invest RM182 million to develop the first commercial green building complex in Putrajaya

The complex, located in Precinct 2, will feature an eight-storey building, a four-storey podium block and two courtyards. It will be ready by early 2012, PHB chief executive officer Datuk Azlan Abdul Karim said.

PHB, the master developer of the country's federal administrative centre, plans to lease the building to government agencies or local and multinational companies.

"We hope to achieve 8 to 9 per cent yield on our investment. Currently, we are getting some 8 per cent from our existing buildings," Azlan said.
He said construction will be done by Putra Perdana Construction Sdn Bhd (PPC), the construction arm of Putrajaya Perdana Bhd, after the Chinese New Year festival.

The construction deal was signed yesterday between PHB's unit, Putrajaya Holdings Sdn Bhd, and PPC in Putrajaya, witnessed by Minister of Federal Territories and Urban Well-being Datuk Raja Nong Chik Raja Zainal Abidin.

Azlan said after the signing of the agreement that the commercial complex will be developed into a Green Building Index Gold Certified Building.

"It would be built based on an environmentally sustainable design, with emphasis on energy efficiency and indoor environment quality,"he said.

By March, construction on the new 350-room business hotel in Precinct 1, with estimated development value of around RM160 million, will start.

Sunway Construction Sdn Bhd has been awarded the contract to build the four-star hotel, which is expected to open by end-2012.

By April, PHB plans to launch an S-shaped waterfront development, comprising boutique retail lots for alfresco dining and lifestyle offices, next to Alamanda shopping complex in Precinct 1.

The RM80 million project is in the tender stage now.

"We are very positive on the outlook. If you look at business at Alamanda, it is doing well. Even business at Pullman Putrajaya Lakeside Hotel is picking up.

"We have lined up a slew of new launches for the rest of the year," Azlan said.

By Business Times (by Sharen Kaur)

Singapore's first casino may open this weekend

SINGAPORE: Singapore is set to open its first casino as early as this weekend, the city-state's latest roll of the dice in its efforts to turn from a staid manufacturing hub to an Asian playground for the rich.

The opening of the Resorts World at Sentosa (RWS) by Genting Singapore may be timed to coincide with the Lunar New Year holiday to attract thousands of overseas and mainland Chinese to the island, industry sources and analysts said.

Genting, a unit of Malaysia's Genting Bhd, declined to confirm the opening date, after the government granted Genting a licence to operate the casino on Saturday, earlier than an expected March or April start and ahead of Las Vegas Sands' rival Singapore casino.

"The early opening ahead of Marina Bay Sands will be positive as it allows RWS to reap the full benefits of a monopoly during the typically peak Chinese New Year festive season," said Keith Wee, an analyst at OSK Research in Kuala Lumpur.
Genting shares rose as much as 5.4 per cent or its biggest gain more than a month when trading opened on Monday, making it the most actively traded stock on the Singapore bourse, but it lost gains to close 1.8 per cent lower.

Deutsche Bank in a report on Monday forecast it would make S$1.7 billion (S$1 = RM2.42) of gross gaming revenue in its first year, but warned that after recent new casino openings in Macau share prices corrected on four occasions between 11 and 29 per cent within 1-2 months.

Singapore is gambling on casinos to increase its tourism revenues and lead to spin-offs such as luxury services and increased business for wealth managers in its financial centre.

Known for shopping malls, efficiency and staid social engineering, the Southeast Asian country is already home to the highest density of millionaires in the world, and the casinos will add to the glamour from a Formula One night street race.

The Straits Times newspaper reported on Monday Genting has told staff and tenants that the casino and associated Universal Studios theme park at its Resorts World at Sentosa casino-resort will open this week.

Resorts World at Sentosa spokesman Robin Goh declined to confirm, saying: "We are still on track for the soft opening in the first quarter of 2010."

In January, the firm opened four of its six hotels as well as some shops and food outlets, while casino staff were trained by roleplaying as clients and croupiers.

Singapore legalised casino gambling in 2005 and said it will allow two casino-resorts to be built as part of ambitious plans to double visitor arrivals to 17 million by 2015.

The city-state's other casino-resort, Las Vegas Sands' S$5.5 billion Marina Bay Sands, is scheduled to begin its phased opening in April, although many analysts doubt if the firm can meet the target date.

Casino operators in Singapore will pay an effective tax of around 12 per cent on net revenue from gamblers, giving them an incentive to draw Asian high rollers away from Macau where the tax is just under 40 per cent.

Each integrated resort is expected to contribute a value add of S$2.7 billion to Singapore's gross domestic product (GDP) in 2015, Singapore's tourism promotion agency estimates, roughly between 0.5 and 1 per cent of GDP.

By Reuters