Mah Sing to launch Icon City next quarter

KUALA LUMPUR: Mah Sing Group Bhd, the country's fifth largest developer by revenue, will launch Icon City, a RM3 billion integrated commercial development in Petaling Jaya, Selangor, in the next quarter.

Group managing director and group chief executive Tan Sri Leong Hoy Kum said Mah Sing will be launching more commercial and industrial projects this year to build the two segments.

Mah Sing has 33 ongoing developments with remaining gross development value and unbilled sales of RM11.4 billion, and RM4.2 billion has been earmarked for commercial and industrial projects.

Mah Sing may replicate the development of Icon City to offer mix products, but it would depend on location and land size, he said.
Icon City comprises seven- to eight-storey lifestyle shop-offices, gourmet street with 20 two-storey food outlets, small office versatile-offices (Sovo), serviced apartments, lifestyle mall, boutique hotel and office towers.

Leong is bullish that Icon City will command good sales because of the product mix, design and location.

Icon City is located on a 7.93ha site in SS8, Sungei Way, a site formerly occupied by Matsushita Group of Co. The land is situated at the crossroads of the Lebuhraya Damasara-Puchong and the Federal Highway.

With unique architectural features, the development would showcase designs, such as forest and water themed plazas, sky glass bottomed pool roof garden and moulded landscapes.

"The shops are on en-bloc sales and we have overwhelming response from potential buyers. It is a testament to our product quality, branding and track record," he said.

Leong said for the serviced apartments and Sovo, Mah Sing is looking at both strata and en-bloc. He added that the five- to seven-year development will comply to the Green Building Index, Green Mark and LEED standards.

By Business Times (by Sharen Kaur)

Mah Sing builds war chest for expansion

Mah Sing will use its internally generated funds and loans for land acquisitions in Greater Kuala Lumpur/Klang Valley, Penang Island and Johor Baru

KUALA LUMPUR: Mah Sing Group Bhd is buying more land in Greater Kuala Lumpur/Klang Valley, Penang Island and Johor Baru that has potential to generate over RM7 billion in gross development value (GDV).

"We are building our war chest for further expansion," group managing director and group chief executive Tan Sri Leong Hoy Kum told Business Times recently.

The company, which has 300ha of undeveloped landbank, will use its internally generated funds and loans for land acquisitions and new projects.

As at December 31 2010, Mah Sing has RM309 million cash in hand.
Last year, Mah Sing was the most active developer in terms of land banking, completing 10 transactions valued at RM756 million.

Leong said these land deals have potential to generate about RM4 billion in GDV.

Mah Sing currently has 33 ongoing developments with remaining GDV and unbilled sales of RM11.4 billion, compared with 23 projects in 2009.

Meanwhile, Leong said Mah Sing is on track to achieve its sales target of more than RM2 billion this year, having achieved almost 18 per cent or RM363 million in the first two months.

He said the spillover demand from 2010, coupled with the confluence of strong fundamentals and its branding, location, concept and products, will make 2011 another good year for the company.

Leong is also encouraged by external catalysts for growth. He said the multiplier effect via the 10th Malaysia Plan and the Economic Transformation Programme would enhance Malaysia's appeal as an attractive investment destination.

Leong said Mah Sing is keen to participate in government land privatisation projects and is currently looking at several deals.

It also plans to partner good business associates to tap on each other's strength and expertise to build and enhance potential business opportunities.

By Business Times

MRCB eyes RM150m pre-tax profit this year

Malaysian Resources Corporation Bhd (MRCB) aims to achieve RM150 million in pre-tax profit on a revenue of RM1.3 billion this year, backed by steady performance of its property and construction operations.

Its chief executive officer, Datuk Mohamed Razeek Hussain, said the company expected to launch property projects, comprising office buildings and condominiums, totalling over RM1.7 billion in gross development value.

Its order book for the property sector, now standing at RM1 billion, and RM600 million for the construction sector would sustain the company's growth for the next two to three years, he told reporters after MRCB's annual general meeting today.

For the financial year ended Dec 31, 2010, the company posted a higher pre-tax profit of RM97.58 million from RM46.49 million previously while its revenue rose to RM1.07 billion from RM921.62 million.

"The Economic Transformation Programme (ETP) projects are rolling out which is really helping the economy and boosting confidence. We hope MRCB will be a successful participant in these projects," Mohamed Razeek said.

Under the ETP, he said, MRCB was undertaking the St Regis Hotel & Residences in Kuala Lumpur Sentral and the River of Live project which involves the clean-up and rehabilitation of Gombak river.

"At the moment, we are working with the government on the scope of works," he said.

Mohamed Razeek said MRCB had also submitted tenders worth almost RM2 billion for general construction works including those related to the LRT extension projects.

The company was also one of the bidders to develop the former Pudu Jail site which is managed by UDA Holdings Bhd, he said.

Asked on the cancellation of its merger with IJM Land, he said: "We could not agree on the definitive terms of agreement."

The disagreement was on the issue of cash and share distribution, he added.

By Bernama

iProperty.com ranked 14th in SE Asia

Effective Measure, the Australia-based audience measurement company, has confirmed iProperty.com Malaysia as the number one property website among Malaysian visitors under its real estate category.

iProperty.com Malaysia was also ranked 14th among South East Asia's most visited Malaysian website by Effective Measure in its recent February 2011 findings.

iProperty.com Malaysia Country manager Timothy Hor said Effective Measure's internet measurement system is impressive in its accuracy and in the audience insights it provides.

Russel Conrad, the Regional South East Asia Director of Effective Measure, said that iProperty.com Malaysia, had the most unique visitors of any property website in the country.

The Malaysian Digital Association (MDA), of which iProperty.com Malaysia is an associate member,recently named Effective Measure as the company to undertake the official Internet Audience Measurement for Malaysia.

By Bernama

SunREIT to give Putra Place a facelift

PETALING JAYA: Sunway Real Estate Investment Trust (SunREIT) acquisition of Putra Place in Kuala Lumpur for RM519.95mil will likely lead to an overhaul of the property with analysts saying the property might not make an immediate bump in SunREIT's earnings.

AmResearch in its report on Friday said SunREIT planned to undertake a major renovation exercise on Putra Place to enhance the property.

“The new management may terminate the contract with the current operator of the Legend Hotel and take over running of the hotel or it would tie-up with a global operator,” it said.

It added that while SunREIT has a commendable track record, especially in managing retail assets such as Sunway Pyramid, it remained to be seen if SunREIT would be able to turn Putra Place around.

“The property needs a strong pull-factor to get a decent visitor traffic as the location, although in the city, is not too favourable,” it said.

Putra Place encompasses The Mall shopping complex, the Legend Hotel and an office tower.

The purchase will also strengthen Sunway REIT's position as Malaysia's largest trust.

JPMorgan Securities (M) Sdn Bhd said the management of the real estate investment trust would only release details on profitability and acquisition yield of the property once the deal was completed.

“The group stated that this is an asset with turnaround potential but some renovation works needed to be done. We believe that this has been a low yielding assets and hence not likely to be making earnings immediately, ” it said in a report.

The real estate investment trust, a 36.7% owned associate of Sunway City Bhd, won the bid at an auction held on Wednesday through its trustee OSK Trustees Bhd.

It has 120 days to complete the purchase.

Commerce International Merchant Bankers Bhd (CIMB) put the property up for auction to recover loans given to property owner, Metroplex Holdings Sdn Bhd.

The auction price of the property was reduced thrice as no bids were received.

The property was first auctioned in April 2008 and the price was then set at RM705mil. The latest reserve value was RM513.95mil.

The Mall comprises eight levels of podium retail/shopping units. The Putra Place office tower starts from the 10th to the 33rd floor, while the 25-storey Legend Hotel includes serviced apartments and penthouses. It is located on Jalan Putra opposite the Putra World Trade Centre. The freehold property, with 193,621 sq ft space, has 1,323 parking bay.

SunREIT told Bursa Malaysia on Thursday that it aimed to provide the unit holders with exposure to a diverse portfolio of authorised investments that will provide stable cash distributions with the potential for sustainable growth.

“This involves selectively acquiring properties that meet investment criteria that will provide attractive cash flows and yields, as well as opportunities for further revenue growth through asset enhancement,” it said, adding that it saw enhancement and turnaround opportunities for the property and planned to undertake major renovation works.

It believed that the property will enjoy upside on capital appreciation as well as improved yield.

By The Star