RM30b Khazanah-Temasek incentive

Kuala Lumpur: Malaysia and Singapore's sovereign wealth funds have teamed up to undertake RM30 billion worth of development projects in Iskandar Malaysia and the island state.

Khazanah Nasional Bhd and its Singapore counterpart, Temasek Holdings (Pte) Ltd, have set up two joint venture companies to undertake the projects.

This is the first joint development investment between the two funds.

Khazanah will own a 60 per cent stake in M+S Pte Ltd that will develop land parcels in Marina South and Ophir-Rochor in Singapore.

The developments there will boast a gross development value (GDV) of RM27 billion with a permitted gross floor area of up to 501,020 square metres (sqm).

The Singapore projects include the development of offices, residential units, hotel as well as retail units.

Another joint venture, Pulau Indah Ventures Sdn Bhd - which is equally owned by Khazanah and Temasek - will develop projects in Iskandar Malaysia, Johor. They will have a GDV of RM3 billion and a permitted gross floor area of up to 1.37 million sqm.

"The development in Iskandar with Temasek will be highly complementary and builds on the momentum of existing and planned projects in Iskandar Malaysia, in which Khazanah has been involved since 2006," Khazanah managing director Tan Sri Azman Mokhtar said in a statement yesterday.

"Both these projects mark our first joint development investment with Temasek, and we look forward to a strong and fruitful partnership in both Singapore and Iskandar Malaysia," Azman added.

Temasek chief executive officer and executive director Ho Ching said: "Both the Khazanah and Temasek teams put in tremendous effort, working very closely together to develop the best ideas possible for our joint projects.

"We were also very fortunate to have the expert and highly professional support of leading real estate companies like UEM Land from Malaysia as well as Mapletree and CapitaLand from Singapore," she added.

UEM Land Holdings Bhd, Khazanah's property arm, will work with Mapletree Investment Pte Ltd, a Temasek portfolio company, to oversee the marketing and development of the project at Marina South.

At the same time, UEM Land will work with Capita-Land Ltd to oversee the Ophir-Rochor project.

So far, two sites in Iskandar Malaysia - one in Medini North and the other at the Heritage Cluster in Medini Central - have been confirmed.

Pulau Indah plans to develop serviced apartments, a corporate training centre, as well as commercial, retail, residential and wellness-related offerings on the sites.

By Business Times

Khazanah and Temasek to develop RM30bil projects in Singapore, Iskandar Malaysia

PETALING JAYA: Khazanah Nasional Bhd has teamed up with Singapore's Temasek Holdings Pte Ltd to develop RM30bil worth of real-estate projects in Singapore and Iskandar Malaysia.

In a statement issued yesterday, both state-owned investment holding companies said they would form two new joint-venture companies M+S Pte Ltd and Pulau Indah Ventures Sdn Bhd for joint-development projects in Singapore and Iskandar Malaysia, respectively.

“We are honoured to be undertaking these exciting developments at these key sites in Singapore and Iskandar Malaysia with our counterparts from Singapore, Temasek Holdings,” Khazanah managing director Tan Sri Azman Mokhtar said in the statement.

“The development in Iskandar with Temasek will be highly complementary and builds on the momentum of existing and planned projects in Iskandar Malaysia, in which Khazanah has been involved since 2006. Both these projects mark our first joint-development investment with Temasek, and we look forward to a strong and fruitful partnership in both Singapore and Iskandar Malaysia.”

Temasek's executive director and CEO Ho Ching in echoing the same sentiment said: “Both the Khazanah and Temasek teams put in tremendous effort, working very closely together to develop the best ideas possible for our joint projects. We were also very fortunate to have the expert and highly professional support of leading real estate companies like UEM Land (Holdings Bhd) from Malaysia as well as Mapletree (Investments Pte Ltd) and CapitaLand from Singapore.

“I am also especially grateful for the guidance, advice and support of very experienced industry leaders who will guide the Singapore developments as key board members of M+S. I look forward to the successful development of the projects both in Johor as well as Singapore.”

M+S, which would be 60:40 owned by Khazanah and Temasek respectively, would develop four land parcels in Marina South and two land parcels in Ophir Rochor. The gross development value of the projects, which would comprise office, residential, hotel and retail components on a permitted gross floor area of up to 501,020 sq m, was estimated to worth around S$11bil (RM27bil).

UEM Land, a real estate company within Khazanah's portfolio, and Mapletree, a Temasek portfolio company, would oversee the marketing and development of the project at Marina South.

The marketing and development of the Ophir Rochor site would be overseen by UEM Land and CapitaLand Ltd, another Temasek portfolio company.

As for the development in Iskandar Malaysia, two new sites one in Medini North and the other at the Heritage Cluster in Medini Central had already been identified for joint commercial development by Pulau Indah, an 50:50 joint venture between Khazanah and Temasek.

Pulau Indah intends to develop serviced apartments, a corporate training centre, and commercial, retail, residential and wellness-related offerings on these sites. Khazanah and Temasek were still in discussions and negotiations with potential partners and operators for the various components to maximise the commercial potential of the location.

Nevertheless, planning and design works for the Iskandar Malaysia projects, estimated at about RM3bil on a permitted gross floor area of up to 1,365,675 sq m, had already commenced since the first quarter.

With the signing of these agreements yesterday, the projects would move towards design and further implementation and delivery of the initial phases over the next five years, the companies said.

By The Star

E&O in maiden foray into Johor

Eastern & Oriental Bhd (E&O) has entered into a shareholders' agreement with Pulau Indah Ventures Sdn Bhd to the development of a township in Iskandar Malaysia.

"We are excited about our maiden foray into Johor.

"With E&O's experience in delivering premier lifestyle properties and the backing of a solid strategic partnership, we are confident of translating the envisioned iconic wellness township concept into a reality for Iskandar Malaysia," said E&O Deputy Managing Director Eric Chan Kok Leong in a statement today.

He said the group would leverage on its expertise from three core businesses to fuel future growth, namely property development, hospitality and lifestyle, and property investment

The 210-acre land for the proposed development is 15 minutes drive from the Tuas Second Link to Singapore, and is in the Heritage Cluster in Medini Central of the Nusajaya flagship zone.

The agreement entered into through E&O's indirect wholly-owned subsidiary, Galaxy Prestige Sdn Bhd, with Pulau Indah will establish a 50/50 joint venture company named Nuri Merdu Sdn Bhd.

By Bernama

KPS' property arm set to be profitable despite loss in first quarter

SHAH ALAM: Kumpulan Perangsang Selangor Bhd (KPS) expects its property division, Kumpulan Hartanah Selangor Bhd, to be profitable again in the current financial year ending Dec 31, 2011 (FY11), boosted by some new and ongoing property launches.

Chairman Raja Idris Raja Kamarudin said the projects were that of a proposed plan to build a resort in Pulau Indah, Klang, a soon-to-be-launched mix-development project in Section 14, Petaling Jaya and a commercial project in Bandar Baru Salak Tinggi, Sepang.

“Our strategies now are to unlock and increase the value of the group's assets and minimise our liabilities. Saying this, we are hoping that our property arm will have a turnaround in FY11,” he told reporters yesterday after the group AGM.

Kumpulan Hartanah Selangor posted a net loss of RM48.05mil in the first quarter ended March 31, 2011 on the back of RM46.7mil revenue against a net profit of RM1.46mil and revenue of RM46.34mil a year ago.

It said the loss was mainly due to higher allowances for impairment on assets in that period.

Raja Idris said KPS would get its shareholders' approval during the next EGM (as an EGM was cancelled yesterday) for the proposed 18-month extension (from June 30, 2011 to Dec 30, 2012) on the expiry date of the put option granted by Kumpulan Darul Ehsan Bhd (KDEB) for KPS' acquisition of a 15% stake in Syarikat Bekalan Air Selangor Sdn Bhd (Syabas) from KDEB. Earlier reports said KPS had already decided to exercise its put option pursuant to the acquisition.

KPS said it had considered various reasons to exercise the option. One reason was that its investment in Syabas had not provided any return as there had been no dividend declared since the completion of the acquisition.

KPS had on Sept 24, 2008, entered into a conditional share sale agreement with KDEB to acquire a 15% stake in Syabas for RM200mil cash.

The acquisition was completed on Dec 30, 2008.

By The Star

Mulpha sees stronger revenue with land sale

SUBANG JAYA: Property developer Mulpha Inter-national Bhd (MIB) is in the midst of selling land in Selangor and Malacca to boost revenue this year.

"I think since we are disposing the assets, we should be stronger in terms of re-venue in 2011," MIB chief executive officer Chung Tze Hien said.

The deal to sell a 2ha plot in Section 16, Petaling Jaya, may be concluded as early as the third quarter of 2011 and that for a 23.7ha site in Malacca may be completed by the end of 2012.

The land in Section 16 has a net book value of RM62.7 million while the one in Malacca is worth about RM23 million.

Chung said MIB will continue to focus on developing its existing projects in Malaysia such as the Lei-sure Farm and Enclave Bangsar.

"We are building 290 over units of semi-D and bungalows in Leisure Farm. We have another project, Enclave Bangsar, which should be ready by mid-year for a soft launch," Chung said.

MIB achieved RM794.5 million revenue for the financial year ended December 31 2010, an improvement from RM671.9 million in the preceding year. It staged a turnaround with a profit of RM112.9 million from a loss of RM9.7 million in 2009.

By Business Times

UEM Land raised to 'trading buy'

UEM Land Holdings Bhd rose to an 11-week high in Kuala Lumpur stock trading after Khazanah Nasional Bhd. and Temasek Holdings Pte appointed the Malaysian developer to help oversee S$11 billion (US$8.9 billion) of Singapore property projects.

The stock rose 2.1 per cent to RM2.88 at 11:06 a.m. local time, set for its highest close since April 8. RHB Research Institute Sdn Bhd upgraded UEM Land to “trading buy” from “market perform” with a RM3.35 share estimate, analyst Loong Kok Wen wrote in a report today.

Khazanah and Temasek, Malaysia and Singapore’s sovereign investment companies, will jointly develop hotels, apartments, offices and shops in the city-state, according to a joint statement yesterday. UEM Land, a Kuala Lumpur-based company controlled by Khazanah, will construct parts of the projects along with Temasek units CapitaLand Ltd and Mapletree Investments Pte, they said.

UEM Land is a “blue-chip proxy for improved Malaysia- Singapore relations,” Amir Hamzah, a Kuala Lumpur-based analyst at Credit Suisse Group AG, wrote in a report today. “This is one of the catalysts the market was waiting for.” He has an “outperform” rating on UEM Land with a share estimate of RM3.80.

The property ventures come after Malaysia agreed to move its railway station in Singapore’s central business district to a site close to a bridge connecting the two countries, ending a decades-old dispute over land usage. The two nations, united between 1963 and 1965, had argued over issues including a new bridge linking the two nations and the price Singapore pays for water from Malaysia.

By Bloomberg

YTL’s Grove sold out ahead of July launch

YTL Land & Development Bhd said phase three of its Lake Fields project in Sungai Besi, known as Grove, exceeded expectations when it sold out all the units ahead of its July launch.

Grove comprises 102 units of three-storey semi-detached homes, which sold at an average RM2 million each, it said in a statement.

By Business Times

Europlus to dispose of Talam debt

PETALING JAYA: Kumpulan Europlus Bhd has entered into a sale and purchase agreement with Megabig Properties Sdn Bhd to dispose of 10-year Al-Bai Bithaman Ajil Islamic Debt Securities (BAIDS) issued by Talam Corp Bhd with nominal value of RM52,666,340 for RM17,600,000.

As part of its regularisation plan, Talam had issued 10-year BAIDS of RM134,213,337 nominal value of RM1 each, of which an aggregate of RM52,666,340 of the primary BAIDS were issued to Abrar Discounts Bhd in settlement of liability, Europlus told Bursa Malaysia.

By The Star