REIT market's worth to hit RM20b this year

KUALA LUMPUR: Market capitalisation for Real Estate Investment Trust (REIT) in Malaysia is expected to grow by 30 per cent to RM20 billion this year from RM15 billion last year, an industry player said.

Sunway REIT Management Sdn Bhd chief executive officer Datuk Jeffrey Ng said the increase will come mainly from the listing of IGB Corp Bhd's REIT in the second half of this year.

"The IGB REIT listing is worth between RM3.5 billion and RM4.5 billion. We are confident the market value could reach RM20 billion this year," he told reporters after the opening of the Real Estate Investment Trust Conference 2012 by Housing and Local Government Minister Datuk Seri Chor Chee Heung, yesterday.

IGB, a general construction and real estate developer, operates through four business segments, namely property development, property investment and management, construction and hotel.

The company's initial investment portfolio on Bursa Malaysia Main Market will comprise eight-storey retail mall called "The Gardens Mall" and its five-storey retail mall "Mid Valley Megamall".

On the industry performance and outlook, Real Estate and Housing Developers' Association Malaysia president Datuk Seri Michael Yam Kong Choy said the industry has been robust in the first half of this year.

Going forward into the second half, he said, the market is expected to moderate, awaiting a fresh moving factor.

Organised by the Asian Strategy and Leadership Institute, the REIT Conference 2012 brought together key decision makers, policymakers, sector players, property developers, asset managers, investors and consultants to share experience and forecast outlook and opportunities in the REIT market.

The conference will, among others, discuss new trends and the industry's development.

By Bernama

Glomac Q4 earnings up 49.1% to RM22.24m

KUALA LUMPUR: Glomac Bhd's earnings rose to RM22.24mil in the fourth quarter ended April 30, 2012 and expected earnings growth to be underpinned by its unbilled sales of RM731mil and development projects with a gross development value (GDV) of RM7bil.

It announced on Tuesday the earnings were 49.1% higher than the RM15.02mil a year ago. Revenue rose 61.1% to RM247.66mil from RM153.73mil.

Earnings per share were 3.90 sen compared with 2.54 sen. It also proposed a final dividend of 2.75 sen a share, compared with 2.50 sen a year ago.

For the financial year ended April 30, 2012, its earnings rose 36.2% to RM85.78mil from RM62.98mil. Revenue rose 9.7% to RM655.61mil from RM597.47mil.

Glomac group executive chairman, Tan Sri F.D. Mansor said anchoring the profits for the year were Glomac Damansara and Glomac Cyberjaya, as well as the final billings from the completed Glomac Tower.

"With this, we are pleased to see that Glomac has consistently delivered steady growth in profits over the recent years. Our profits have doubled within two years from RM41mil in financial year 2010 to RM85.8mil in 2012," he said.

He said new sales "have been encouragingly strong, reflecting the healthy demand for the projects we bring to market".

Glomac's total sales of RM663mil in FY12 was higher than its internal target of RM500mil, driven by its prime mixed developments such as Glomac Damansara and Glomac Centro, as well as steady sales from its townships, Bandar Saujana Utama and Saujana Rawang.

By The Star

Dijaya unit to buy land in Johor Baru

KUALA LUMPUR: Dijaya Corp Bhd’s 80 per cent owned unit, Aliran Peluang Sdn Bhd, has entered into a sale and purchase agreement with Chua Joo Cheng @ Chua Su Yin to acquire 23 hectares in Johor Baru, Johor, for RM105.07 million, or at RM43.80 per sq ft.

In a filing to Bursa Malaysia yesterday, Dijaya said the proposed acquisition ties in with its strategy to acquire sizeable land banks with good development potential, especially in the economic zone of Iskandar Malaysia.

By Business Times