Listari in Malacca mixed development project

PETALING JAYA: Little-known property developer Listari Marina (M) Sdn Bhd is building a mixed development at Klebang, Malacca with a gross development value of RM183mil and aimed at largely mainland Chinese buyers and Japanese investors seeking to invest in the country.

Speaking at a publicity event in Kuala Lumpur, its chief executive officer Datuk Seri Alex Teh Chee Teong said the project was part of its RM1.5bil mixed development project residential components, hotel, shopping mall and a water theme park that would be launched and developed in stages in the next 10 years.

“We have about over 200 acres of reclaimed land now, and the Eco Marine Park and Resorts will be beside the Klebang Beach, and near the Dataran 1 Malaysia launched by the Prime Minister,” he said at the ceremony to hand over a RM15mil investment pledge mock cheque to MAAKL Mutual Bhd.

He said the company was completing soon part of the theme park which features a water laser show, and according to him would be the largest in Asia.

In collaboration with MAAKL Mutual Bhd, the company will also offer purchasers free mutual fund units which equal to about 8% to 10% of the property purchase price and also free MAAKL Life Plus Insurance policy to eligible and qualified purchasers and investors.

Teh, who is also the director of London-listed Radiant Growth Investments Ltd said the listed company was planning to do a rights issue to raise more money to expand its business.

“We are planning to set up another waste to power plant in Vietnam. We are already building a power plant in Vietnam which is a joint venture with the Vietnamese government and funded by a US$36mil facility from the US export and import bank. We also aim to tender for another power plant in Shenzhen,” he said.

Teh said the company was also in discussion to acquire 15% stake in a 94,000ha in Cameroon for oil palm planting purposes.

“With our plans we may need to go and raise funds for the second time as the proceeds in our initial public offering is not sufficient,” he said.

Listed on the London stock exchange's Alternative Investment Market on Sept 20 last year, the company raised £6.3mil from its IPO.

By The Star

RHB Research: IGB REIT fair value RM1.43

KUALA LUMPUR: RHB Research Institute has initiated coverage on IGB REIT, which will be listed on Friday, with an Outperform call and a DDM-based fair value of RM1.43, based on a cost of equity assumption of 7%. The offer price is RM1.25.

It said IGB REIT, with its two assets Mid Valley Megamall (worth RM3.44bn) and The Gardens Mall (RM1.16bn) will be the largest pure retail REIT thus far, ahead of Pavilion REIT and Sunway REIT. “We believe that The Gardens Mall (TGM) will be the REIT's future growth driver. TGM currently contributes about 30% to IGB REIT's topline. TGM is a high-end mall and in the early stages of its rental cycle as compared to the more matured Mid Valley Megamall (MVM),” it said. RHB Research said other factors that could potentially drive IGB REIT's growth going forward include: 1) Strength of the management team; 2) Proactive asset enhancement initiatives; 3) Potential development of the surrounding areas; and 4) Resilient consumer spending. “We forecast an EPU growth of about 6%-7% per annum for IGB REIT, on the back of our rental growth assumption of 5%-6% per annum for MVM and 7%-9% per annum for TGM,” it said.

By The Star