Rehda: Delay in APDL permits slows down Penang residential property market
Penang’s residential property market has seen a significant drop in the first half of the year compared to the same period last year, and the downward trend is likely to continue over the next few months, according to Real Estate and Housing Developers Association (Rehda) Penang. Several factors are said to cause a drop in transactions for the next few months, but the main factor seems to be the delay in issuance of advertising permit and developers license (APDL) which will result in less new supply. There are currently 50 projects in Penang pending the APDL, which is issued by the Urban Wellbeing, Housing and Local Government Ministry to all developers for any development project before the commencement of sale and the signing of SPA agreements. (The Malay Mail Online)
Plenitude to launch RM1bil worth of properties
Property developer Plenitude Bhd, which recently taken over and merged with The Nomad Group Bhd, is planning to launch RM1 billion worth of properties in the next two years, comprising high-rise, landed and commercial projects. The group remains cautious in the current weak market sentiment, but has been steadily growing with diversification into the hotel segment. Its recent RM160mil acquisition of The Gurney Resort Hotel & Residences has seen its hotel segment grow to five hotels and one serviced residence in Kuala Lumpur and Penang. (The Star Online)
One of Plenitude’s current projects is The Marin at Batu Ferringhi, Penang which will be completed in 2018.
Kong resigns as Tropicana MD effective Dec 5
Tropicana Corp Bhd has announced that its group managing director (MD) Datuk Kong Woon Jun has resigned from his position effective Dec 5 this year, in order to pursue other career opportunities. The company did not give details of Kong’s successor. Kong was promoted from deputy group MD to group MD in March 2014. He started his career as a senior architect in 1994, and has more than 26 years of experience in property development and construction. (The Edge Markets)
Guangdong-based Chinese company invests in Plaza Rakyat
Guangdong Debao Land Co Ltd, a property development company based in Guangdong, China is planning to invest in the abandoned Plaza Rakyat project in Jalan Pudu, Kuala Lumpur. It was recently announced that the waterlogged site would be rehabilitated by developer Profit Consortium Sdn Bhd. Guangdong Debao will acquire equity in the company for funding the project, although the stakes are still being discussed. Under the SPA with DBKL, Profit Consortium will pay RM740 million to take over the site, with some RM40 million allocated for compensation to buyers. (The Malaysian Insider)
A long road ahead for the developer, who has to drain the site and assess the foundations, as well as for buyers who are waiting for the project to be completed or to claim compensation. (Photo from The Malaysian Insider)
MRCB targets land bank expansion with Bukit Jalil deal
Malaysian Resources Corp Bhd (MRCB) last week announced that it had secured a RM1.6 billion deal from the government to refurbish and upgrade the Bukit Jalil National Sports Complex (NSC) in exchange for land, which the company says is in line with its strategy to expand its land bank. The construction and property development company said that it had no issue with cash flow as it was ble to internally generate funds to finance the two-phased project in the next five to six years. MRCB prides itself on being an urban developer, hence its focus is on acquiring urban land, preferring to go into areas within the city to rehabilitate and upgrade, rather than source for land outside the city. (The Star Online)
AmProp records 131% profit in 2Q from overseas contribution
Amcorp Properties Bhd saw its net profit jump 130.58% to RM16.48 million in the second quarter (2QFY16), mainly attributed to its overseas properties division, while its revenue for the quarter came in 7.41% lower. Its Malaysian property projects contributed RM17.4mil to group revenue, while renewable energy and contracting division contributed RM23.7mil. AmProp expects its overseas and Malaysian property projects to contribute positively to the group’s earnings in the current financial year. (The Edge Markets)
