Tambun Indah mulls Klang Valley project

PROPERTY developer Tambun Indah Land Bhd is looking to expand to the Klang Valley to tap into the growing demand for residential properties.



Tambun Indah, which has some RM60 million in cash reserves, has not decided on any particular land yet but is on the lookout for suitable landbank.

"We are eyeing for landbank in the Klang Valley and have viewed some land in Shah Alam and Kajang, but we have not finalised anything yet," said managing director Teh Kiak Seng in Kuala Lumpur.

The company also plans to invest some RM178 million to purchase two more parcles of land of about 1.62ha each in Penang next year.

Currently, Tambun Indah owns 86ha of land in Penang, with a gross development value (GDV) of about RM1 billion which should keep it busy for the next six years.

Last year, it also had some 10 per cent of the residential property market in Seberang Perai, namely through its Tambun Indah development project.

"Seberang Perai is one of the fastest growing districts in Penang due to the rise of working class population as a result of rapid industrialisation," he said at the company's prospectus launch yesterday.

Tambun Indah is seeking to raise RM22.4 milion from its initial public offering exercise, of which RM12.7 million will be allocated for working capital, RM7.1 million to repay bank borrowings and RM2.6 million for the listing exercise.

Of the 32 million new ordinary shares under the public issue, 11.05 million share will be allocated to the public at 70 sen a share.

Applications for Tambun Indah's shares close on January 6 2011 and subsequently, the company will be listed on the Main Market of Bursa Malaysia on January 18.

Established in 1994, Tambun Indah has completed eight projects, selling more than 2,800 units with a total GDV of more than RM800 million.

Its ongoing projects include Pearl Garden, a gated residential project located in Simpang Ampat which is set to be completed in 2016 and Juru Heights in Seberang Perai, a gated residential project that is expected to be completed early next year.

By Business Times

Tambun Indah to buy 3.2ha in Penang

KUALA LUMPUR: Tambun Indah Land Bhd, a leading property developer in Penang, is planning to acquire 3.2ha of land next year.

Managing director Ir Teh Kiak Seng said the group had identified 1.6ha on the mainland and another 1.6ha on Penang island with a gross development value (GDV) of approximately RM36mil and RM170mil respectively.

According to an independent market researcher, the residential property market in Penang was valued at RM3.7bil last year, and the mainland accounted for approximately 30% of Penang's residential property market.

“Mainland Penang (Seberang Perai) is one of the fastest growing districts in Penang due largely to a growing working class population as a result of rapid industrialisation,” he said during the launch of the group's initial public offering (IPO) here yesteday.

Tambun Indah is scheduled for a main-market listing on Jan 18. “We are still eyeing for landbank in the Klang Valley like in Shah Alam and Kajang but are cautious about the cost; therefore, we have not finalised anything yet.

“As we all know, Klang Valley is a good market to do housing, but we want to build our name by building quality homes at an affordable price. We, however, have no plans to expand overseas at the moment,” Teh said.

Last year, the group garnered a 10% share of the Seberang Perai residential property market.

“We expect after the IPO, our market share will increase above 10%,” he added. To date, Tambun Indah has sold more than 2,800 residential units, mostly in mainland Penang with a GDV of more than RM800mil.” Teh said the group achieved commendable financial performance over the years and had maintained a low-borrowing financial model so as not to burden the balance sheet. As at Dec 31, 2009, the group was in net cash position.

“Tambun Indah has adopted a progressive dividend policy of paying between 40% and 60% of group net profit to shareholders.

“At an IPO price of 70 sen per share, the annualised net dividend yield is (about) 7% in financial year 2010,” he said.

By Bernama

Mall-in-a-park first of its kind in Malaysia

Two Malaysian actors plan to open a shopping mall within a park in October next year, said to be the first of its kind in Malaysia.



Dubbed an outdoor living mart, the project will occupy a land area of 5.9ha located between Puchong, Seri Kembangan and Putrajaya.

The project, dubbed "Garden Explore", will cover seven major zones of outdoor retailing lots, a plaza and entertainment hall, offices, cafes, restaurants and one petting zoo.

"It's the first of its kind in Malaysia but there have been similar developments in China," said Jack Lim, a director of Green Atmosphere Sdn Bhd, at the launch in Kuala Lumpur yesterday.

Managing director Nick JM Wong, a former actor, controls the firm while Weng Zheng Steel Bhd chairman Tan Ching Kee is the adviser.

Construction work is due to start after the Chinese New Year next year. The company has not set any revenue target for the pioneer project.

"The gross development value of the project is RM20 million and this does not include the land cost which was leased from Tempo Properties Sdn Bhd," Lim said.

He declined to reveal the leasing cost, which runs for 10 years.

A unique feature of the project is that cars will not be allowed into the area. Rather, visitors will have to walk or cycle their way through the mall.

By Business Times

MRCB-IJM Land merger called off

PETALING JAYA: Property firms IJM Land and MRCB have aborted their planned merger by way of a members' scheme of arrangement as both companies have not been able to come to an agreement.

Separate announcements by both companies were made to the stock exchange on Friday concerning the matter.

RHB Investment Bank and Newfields Advisors announced on behalf of MRCB that both companies “have not been able to reach an agreement on the definitive terms and conditions of the proposed merger”.

Accordingly, they said the proposed merger was now aborted.

Meanwhile, an IJM Land statement on Bursa Malaysia said after a series of discussions, both were not able to reach an agreement on the definitive terms of the proposed merger.

By The Star

Ibraco selling 6.5ha land in Kuching

REAL ESTATE and property developer, Ibraco Bhd, is selling a total number of 6.5ha of land in Kuching, Sarawak, to Wansa Realty Sdn Bhd for RM14.2 million.

The demand for office buildings and exhibition buildings in the subject area is expected to be limited.

The company told Bursa Malaysia Bhd that the disposal will avoid potential holding cost should Ibraco build and sell the office and exhibition buildings.

The sale consideration is about 2.7 per cent above the market value of the land.

By Business Times

Mitrajaya unit wins RM53.5m contract

PROPERTY developer Mitrajaya Holdings Bhd’s subsidiary has won a RM53.5 million contract for the construction and completion of five units of hangar, one unit of two-storey multipurpose café building, two units of electrical substation and one unit guardhouse at Subang Airport, Selangor.

The contract awarded to Pembinaan Mitrajaya Sdn Bhd, is for a period of 10 months and work starts on January 1 2011.

By Business Times

Axis-REIT wants to buy building for RM51m

Axis Real Estate Investment Trust(Axis-REIT) is proposing to acquire a four-storey building, together with a freehold land, in Selangor from FSBM Holdings Bhd for RM51.25 million.

The proposed acquisition would be consistent with the investment objective and would be accretive to Axis-REIT's distribution income, the company said in a filing to Bursa Malaysia today.

It said the proposed acquisition would diversify and enlarge Axis-REIT's portfolio of properties and was expected to benefit the fund over the medium to long-term.

By Bernama