Mah Sing secures RM221mil bulk sales in Icon Residence Mont Kiara

KUALA LUMPUR: Mah Sing Group Bhd has secured a RM220.8mil bulk sale of 96 units of serviced residences in Icon Residence Mont Kiara, at an average pricing of RM1,200 per square foot.

The units were taken up by an established Chinese corporation that would undertake the construction of buildings and external works of the entire project in return for the 96 selected units, Mah Sing said in a statement today.

Mah Sing will be the sole marketing agent for the 96 units. “This is indeed an innovative arrangement as it frees up the construction cost for Mah Sing and allows us to use our cash flow for other opportunities. “It also sets a precedent for similar arrangements in the future for other Mah Sing projects,” said Mah Sing Group Managing Director/Chief Executive Tan Sri Leong Hoy Kum without naming the Chinese corporation.

Icon Residence Mont Kiara, dubbed the first in the region to adopt a distinctive Mediterranean theme, comprises 260 units in 3 iconic towers.

This bulk sale brings the take up of the project to more than 60%.

Mah Sing said the project had attracted strong interest from Hong Kong, China, Singapore, Indonesia, Taiwan, Korea as well as Sabah and Sarawak.

“Mah Sing intends to start a series of roadshows to these countries to reach out to its registrants and facilitate their purchase,” it said.

By Bernama

Developers drawn to ‘less prime’ locations

With the supply of land-bank getting scarce in the Klang Valley, it's not surprising to see developers expanding their presence in “not-so-prime” locations.

This was evidenced as recently as last week, when SP Setia announced it was acquiring a RM381.2mil plot of land in Rinching, located mid-way between Semenyih and Bangi old town, to be followed soon after by Mah Sing Group Bhd's purchase in Rawang for RM92mil.

“Granted, it is often developers with prime land-bank in Kuala Lumpur and Penang that stand to benefit more from rising property prices,” says an industry observer.

“But property conglomerates such as SP Setia and Mah Sing are well-known brand names with a proven track record. They can probably attract buyers and chalk up sales even if they bought land in Timbuktu,” he adds in jest.

A huge boost to the land acquired by SP Setia and Mah Sing is that they are both well connected. Malaysia Equity Research in a report pointed out that the former's Rinching land is located within 15 minutes from the proposed Bandar Kajang MRT station. “(It is) near the terminal station for the approved MRT Blue Line (Sungai Buloh-Kajang) and 25km south of KLCC (which is 40 minutes via existing highways).”

The report also says SP Setia is planning to replicate the success of its twin flagship Setia Alam and Setia Eco-Park development, including investing in infrastructure to improve connectivity.

An analyst at a local bank-backed brokerage says investing in infrastructure is “part of the package” when developing land that is considered “less prime”.

Similarly, analysts are also positive about the connectivity for Mah Sing's Rawang land. The developer has proposed to develop a mixed township, M Residence@Rawang, that includes beginner homes on 90.3ha.

“M Residence@Rawang is directly accessible from the North-South Highway, being only 10km from the exit point at the Rawang toll via Jalan Batu Arang. The Kuala Lumpur-Kuala Selangor Expressway (formerly known as Latar Highway) was opened in June,” says UOB KayHian in its research report.

“The Rawang KTM Station is also a short drive away, within 12km from the land, according to the management,” it adds.

According to Mah Sing, the M Residence@Rawang township has an estimated gross development value of about RM948mil and preliminary plans include two-storey link homes, townhouses, semi-detached homes, three-storey shops and various facilities and amenities.

“M Residence@Rawang is expected be developed over three to four years and the group is also actively scouting for more well-located mega township land that fit the group's business model of quick turnaround and allow for value enhancement,” the company says.

The first launch is slated for the first half of next year for the mass market, in line with the Government's call for private developers to build more affordable housing.

The move to provide affordable homes has been praised by analysts and industry observers and considered a good way to attract buyers in less prime land within the Klang Valley.

“With absorbitant property prices today, especially in the Klang Valley, it is becoming increasingly difficult for first-time home buyers to even place a downpayment for a house,” says one industry observer.

On the proposed Mah Sing development, UOB KayHian says: “The price tag for a two-storey link house (built-up of about 2,000 sq ft) is indicatively priced from RM390,000 onwards, or RM195 per sq ft. Ground checks indicate that selling prices for a two-storey link house in nearby developments such as The Emerald and Bandar Country Homes range from RM150 per sq ft to RM250 per sq ft.

“We believe the township concept should be able to attract buyers given the decent selling prices.”

Macquarie Research in its recent report says Mah Sing's project could see good demand with the significant rise in property prices in Kuala Lumpur and Klang Valley in the past year.

“As a comparison, Kuala Lumpur Kepong Bhd (KLK) launched its link houses in June this year in Bandar Seri Coalfields with prices ranging from RM328,000 to RM368,000. We understand from KLK that the sales for the launch were very strong with over 90% sales achieved, primarily due to upgrader demand.

“Mah Sing's new land is further up north of KLK's project, but has good connectivity with the KL-Kuala Selangor Expressway and is 20km from Rawang city centre.”

By The Star

Bina Puri awarded RM20.4m housing job

Bina Puri Holdings Bhd's wholly-owned subsidiary, Bina Puri Construction Sdn Bhd, has secured a RM20.4 million project from Jabatan Perumahan Negara.

The 14-month project, to commence this month, will involve the
construction of a housing project in Dengkil known as Taman Topaz.

In a statement today, Group Managing Director Tan Sri Datuk Tee Hock Seng said with the new project, the firm's outstanding orderbook, now stood at RM2.73 billion.

"This year, we have secured new projects worth over RM1 billion, which is consistent with our performance over the last few years," he added.

Tee also said the company was optimistic the construction sector would benefit from the new allocation recently announced in the 2012 Budget coupled with the spillover effects from the Economic Transformation Programme.

By Bernama

Bina Puri secures RM20mil project

Kuala Lumpur: Bina Puri Holdings Bhd has announced that its wholly-owned subsidiary, Bina Puri Construction Sdn Bhd, has been awarded a project from the Jabatan Perumahan Negara worth RM20.4mil.

The project is to undertake the construction works of a housing project in Dengkil known as Taman Topaz. Construction will commence in Oct 2011 and is expected to be completed in 14 months.

Group Managing Director Tan Sri Datuk Tee Hock Seng, JP said, “Inclusive of this project, our outstanding orderbook now stands at RM2.73bil. This year, we have secured new projects worth over RM1bil, which is consistent with our performance over the last few years.”

“Moving forward, we are confident our clients will be assured of our ability to deliver quality and timely projects. Additionally, we are optimistic that the construction sector will benefit from the new allocations recently announced under the Budget 2012 coupled with the spillover effects from the Economic Transformation Programme,” Tee added.

By Bernama

PNB not taking active role in SP Setia

KUALA LUMPUR: Permodalan Nasional Bhd (PNB) has given its assurance that Tan Sri Liew Kee Sin will continue to lead SP Setia Bhd as the company's CEO.

In a joint statement to Bursa Malaysia, PNB said its role in its investee companies is mainly through board representation while the day-to-day operations are left to professional managers.

"PNB is an investment fund and its role is to look out for good companies to invest in and not to manage these companies," it said.

The statement said PNB president and group CEO Tan Sri Hamad Kama Piah Che Othman had met Liew on Friday to “personally reassure him of PNB's best intentions for SP Setia."

“PNB is also committed, once markets stabilize, to maintain an appropriate shareholding spread with the capacity to attract not just local but also foreign institutional funds and retail participation,” it added.

In September, PNB had launched a takeover offer for SP Setia for RM3.90 cash per share and 91 sen per warrant after its shareholding surpassed the 33% threshold.

Since then, PNB has steadily acquired shares through the open market, with the most recent acquisition indicated in a Bursa Malaysia filing this morning that showed the state investment firm added 9.14 million shares at an average of RM3.89 apiece and 1.06 million warrants at 89.5 sen apiece.

SP Setia shares were traded at RM3.89 at 3pm.

By The Star

PNB says to keep SP Setia management

Permodalan Nasional Bhd, Malaysia’s biggest state-asset manager, plans to retain SP Setia Bhd’s current management team with Liew Kee Sin as chief executive officer following its proposed buyout, according to a joint stock exchange filing in Kuala Lumpur today.

PNB is also committed, once markets stabilize, to maintain an “appropriate” shareholding spread to attract local and foreign investors, the statement said.

Liew reiterated the board’s advice to wait for PNB’s offer document and a circular from independent advisor AmInvestment Bank Bhd before deciding on the general offer, it said.

The joint statement followed a meeting last week between Liew and PNB President Hamad Kama Piah Che Othman, it said.

By Bloomberg

Pavilion said to raise RM800m in IPO

Pavilion REIT, part-owned by the Qatar Investment Authority, plans to sell units on Malaysia’s stock exchange as early as next month through a property trust, said two people with knowledge of the matter.

The company, which owns the Pavilion shopping, residential and office project in Kuala Lumpur, aims to raise about RM800 million (US$255 million), said the people, who declined to be identified as the information is private. The size of the initial public offering may rise to as much as RM1 billion depending on demand, one of the people said.

At RM800 million, the Pavilion IPO would be Malaysia’s third-biggest share sale this year, after offerings by Bumi Armada Bhd and MSM Malaysia Bhd. Companies canceled or postponed US$8.9 billion of IPOs around the world in the third quarter as stocks plunged, putting the market on track to set a record for pulled deals.

Fitness First Ltd, which had sought to list in Singapore by the end of this year, is among those delaying IPO plans, people with knowledge of the matter said this month.

Pavilion is owned by Malton Bhd. Chairman Desmond Lim Siew Choon and his wife, together with Qatar Investment Authority. Its flagship development comprises a 1.4 million square-foot retail mall with 450 outlets, plus one office building and two residential towers in Kuala Lumpur’s city center, according to Malton’s website.

CIMB Group Holdings Bhd, Malayan Banking Bhd and Credit Suisse Group AG are managing the offering, the people said. Desmond Lim and his wife were at meetings and couldn’t immediately comment, according to their secretaries. A spokeswoman for Pavilion, who asked not to be identified, had no immediate comment.

By Bloomberg