Wednesday, August 24, 2011
Its managing director and CEO Datuk Soam Heng Choon said IJM Land would continue to launch projects in FY12 due to strong demand for property that is underpinned by young buyers and attractive interest rates.
“Apart from the soft market in Kuala Lumpur City Centre and Mont’Kiara, demand continues to be strong for properties in the country,” he said after the group’s AGM yesterday. He said low interest rates continue to remain low and attractive for property investments. He added that the volatile equities market, which had been trending downwards, would see investors looking at bricks-and-mortar to hedge against inflation, besides commodities.
“Last year, we (the housing industry) saw 376,000 units sold nationwide, which was a record for the industry. The total properties sold had a combined gross development value (GDV) of RM107 billion. This year, we expect demand to be remain strong, but it could be slightly lower due to the higher base and weaker sentiments of the global economy. But we remain optimistic,” he said.
IJM Land’s current unbilled sales stand at just over RM1 billion that would last the group for two years. Soam said IJM Land is planning to launch projects in Seremban, Bandar Utama and mainland Penang this year.
He said properties priced around RM500,000 would continue to see good demand, and is bullish on the mass rapid transport (MRT) system to drive property prices up.“The MRT project has a multiplier effect for the value of properties” he said.
Soam is particularly bullish on Penang where IJM Land is one of the more prominent property developers with a 325-acre (130ha) landbank on the island, including 153 acres on reclaimed land.
He said IJM Land currently has 4,800 acres with a potential GDV of RM19 billion that will last the group for 10 to 12 years.
On a possible property glut in Penang, Soam said IJM Land has positioned itself as a market leader and is unperturbed with other developers emerging on the island.
“The pie is big enough, but our product offerings will set us apart from others. Our properties are located near the Penang bridge and have premium waterfront position,” he said. He said IJM Land will launch a RM400 million project in Bukit Mertajam consisting of cluster and terrace houses by year-end.
Soam said IJM Land’s three key projects — the RM1.4 billion Sebana Cove in Johor, the RM10 billion Canal City project in Kota Kemuning, and the RM5 billion The Light commercial phase in Penang are on track for launch in the middle of next year.
“Land reclamation works in Penang are currently underway and we are doing the detailed planning for the Canal City township which has an acreage of 2,000 acres. These projects are on schedule for launch next year,” he said.
According to analysts, the three projects are expected to boost IJM Land’s earnings in FY13 onwards. HwangDBS Research said in a recent note that the on-going investments by Petronas in Pengerang, Johor, would buoy housing and rental within the area.
“Canal City should be an excellent beneficiary from the matured Kota Kemuning township and eventual completion of light railway transit extensions to Putra Heights. It would also give IJM Land a much needed flagship Klang Valley project,” said the research house in a recent note. It has a “market perform” call on IJM Land with a fair value of RM2.74.
Soam said IJM Land is open to merger exercises, but it is not looking for any partner anytime soon. Last year, it entered into a memorandum of understanding with Malaysian Resources Corp Bhd (MRCB) for a proposed merger but it later fell through.
At the heart of the merger is the Employees Provident Fund (EPF), which is a common substantial shareholder for IJM Land’s parent, IJM Corporation Bhd, and MRCB.
EPF holds the mandate for the much-coveted 3,300-acre Rubber Research Institute Malaysia (RRIM) land in Sungai Buloh. Despite the merger setback, Soam said IJM Land remains interested in developing the RRIM land and would submit an application when the tender is called.
It said on Tuesday, Aug 23 that revenue for the quarter fell to RM75.92 million from RM107.59 million in 2010. Earnings per share was 8.20 sen compared to 10.20 sen in 2010, while earnings per share was RM2.91.
For the financial year ended June 30, Plenitude’s net profit rose to RM89.59 million from RM84.19 million on the back of revenue RM317.89 million.
Plenitude executive chairman Chua Elsie in a statement Aug 23 said that the profit for FYE 2011 was attributable to good demand and higher selling price per unit of its existing projects in Puchong, Johor Baru, Penang and Sungai Petani.
Chua said for the reporting year, Plenitude launched three (3) phases within its Puchong, Johor Baru and Sg. Petani mixed residential projects.
She said the latest phase of Taman Putra Prima, Puchong spearheaded the strong performance this year where a total of 248 units of double storey and 2 ½ storey terrace houses were fully sold.
Taman Desa Tebrau, Plenitude’s flagship development in Johor Baru recently launched 55 units of bungalows and currently registering a take up rate of 70%, she said.
Chua said Plenitude’s maiden luxury project in Penang, Bayu Ferringhi had been completed, delivering 112 units of condominium and 38 units of semi detached homes.
“Sales for our townships in Sungai Petani, Kedah mainly Bandar Perdana and Perdana Heights (Lot 88) properties also continue to rise.
“With the current demand pushing up prices, we are offering very affordable well designed 1 ½-storey terraced houses and double-storey terraced houses to meet expectations of first time buyers” said Chua.
Friday, August 19, 2011
Wednesday, August 17, 2011
KUALA LUMPUR: Sunway Holdings Bhd and Malaysian Resources Corp Bhd (MRCB) announced yesterday the awards of contracts for the light rail transit (LRT) extension projects by Syarikat Prasarana Negara Bhd (SPNB).
Sunway Construction Sdn Bhd, a unit of Sunway Holdings, clinched Package B for the Kelana Jaya line extension project, valued at about RM569 million while MRCB was awarded a contract worth RM1.33 billion for the Ampang line extension.
SPNB is fully owned by the Ministry of Finance, and was given the task of expediting the project by the government.
In a statement yesterday, Sunway Holdings said the Kelana Jaya line extension will link Kelana Jaya station to Putra Heights via Subang Jaya. The facilities works are divided into two packages, Package A and Package B.
Under Package B awarded to Sunway Construction, the facilities works will involve the construction and completion of facilities along a 8.1km route from Persiaran Kewajipan, Subang Jaya to Putra Heights.
The works include site clearance, earthworks, viaduct construction, roadworks, drainage, traffic management, structural and temporary works.
“The proposed project is expected to commence upon handing over of site possession which is anticipated in September 2011 with a construction period of 29 months.
“It is expected to contribute positively to the earnings of Sunway Group for the financial year ending Dec 31, 2012 onwards,” said the company.Sunway Holdings’ outstanding construction order book stands at RM1.97 billion, of which RM508 million is from overseas. It also has a tender rolling order book of RM1.5 billion.
In its filing with Bursa Malaysia, MRCB said the contract was awarded through its wholly-owned subsidiary MRCB Engineering Sdn Bhd (MESB).
The RM1.33 billion contract includes the construction and completion of facilities works including fabrication and delivery of segmental box girders (Package B) for the Ampang line extension project.
MRCB also said that through a separate letter SPNB has awarded MESB the sub-contract for the fabrication and delivery of segmental box girders (Package B) for the Kelana Jaya line extension project.
MESB also bagged a RM67.2 million job from Sunway Construction. No details were available. The construction period for the works is 20 months from commencement date which is defined as anytime within 14 days from the notice to proceed,” said MRCB adding that the contracts would contribute positively to MRCB’s future earnings.
In its annual report for FY10, MRCB said its order book had surpassed the RM1 billion mark.
The main contractor of the facilities job for Package A, worth RM634.64 million of the Ampang line, was jointly awarded to Bina Puri Holdings Bhd and Tim Sekata. The contract is scheduled to complete within 2½ years.
The first phase of the Ampang line will be a new 7.4km stretch from the Seri Petaling station to Station No 5, while Package B will see a 10.3km extension from Station No 5 to the Putra Heights Station.
So far, SPPNB, which has been given the mandate to oversee the country’s infrastructure projects, has awarded contracts worth RM1.7 billion for the first phase (Package A) of the RM7 billion (LRT) extension project involving the Kelana Jaya and Ampang lines.
SPNB had said the selection of the contractors was done through an open tender process starting from November 2009. A total of 119 applications were received, but one was rejected due to failure to comply with application guidelines.
source: TheEdge 17 August 2011
Thursday, August 11, 2011
PROPERTY developer Millennium Land Sdn Bhd has announced that 80% of the retail lots in M Square Mall have been sold. “This is better than the anticipated response to our integrated development M Square @ Millennia City launched in May this year,” said Millennium Land general manager Chua Chin Eng. “I believe that Millennia City will be the next commercial hub of Puchong,” he said at the Millenia-Hilton Premium Club Membership presentation ceremony.
M Square has a total GDV of RM1.5bil. It has a total gross built-up area of 1.37 million sq m and a nett built-up area of 0.75 million sq m. This development comprised M Square Mall — a 115,824sq m self-enclosed six-storey shopping mall that is linked to the 255-room Hilton Garden Inn, and a 0.64mil sq m Street Mall comprising 13 blocks of six-storey retail and office units which upon completion, will be the country’s largest alfresco mall and the commercial heartbeat of Puchong.
A convention hall with a seating capacity of 1,200 to cater to the Meetings, Incentives, Conferences and Exhibitions (MICE) market segment will also be part of M Square offerings. The development also features 3,250 car park bays with direct drive through access from the LDP via an underpass to be built by MLSB.
According to Chua, in conjunction with the continuous marketing programme to promote M Square and Hilton Garden Inn, Millennium Land through its agreement with Hilton Worldwide, is offering purchasers the Millennia-Hilton premium Club membership card.
The Millennia-Hilton Premium Club membership card offers a host of privileges which includes dining and beverages privileges of up to 50% at Hilton Hotel’s restaurants in Kuala Lumpur, Petaling Jaya, Kuching, accommodation privileges at any Hilton Hotels in Malaysia, as well as discounted rates at any participating Hilton Hotels in the Asia region.
Members will also get to enjoy overall discounted rates for the use of the in-house Clark Hatch Gym & Spa treatment centres as well as amenities, business centre services at Hilton Kuala Lumpur and Hilton Petaling Jaya.
Millennium Land will be giving away Millennia-Hilton Premium Club membership card for those who made purchase of our property now and enjoy the privileges offered immediately.
source: TheStar August 12, 2011