Property News Summary – 24 November 2015

Qatar-backed firm expresses interested in Bandar Malaysia project
Sources have said that a third bidder comprising a local company backed by the Qatar government’s investment arm had expressed strong interest in 1MDB’s Bandar Malaysia project, which could lead to a three-way fight for a majority stake in Bandar Malaysia. Last week, 1MDB Real Estate Sdn Bhd, the mater developer of the project, had announced that it had narrowed down the final two binding and funded bids for the development. The emergence of a third party, as a potential joint development partner at Bandar Malaysia had caught the market by surprise. However, it is not known if the proposal had reached 1MDB or if it would be considered, as the tender has already closed. (AsiaOne)

LTH sells Buckingham Palace Road property for RM1.6bil
Lembaga Tabung Haji (LTH) is said to have sold one of its prime properties in central London, heeding a call by the government to repatriate profits from overseas and support the domestic economy. The office block in London, known as 151 Buckingham Palace Road, is said to be worth £250mil (RM1.6bil). LTH acquired the property in March 2013 for £205mil (RM1 billion at the exchange rate at that time). For LTH, the disposal came at an opportune time as the pound sterling has risen 42% against the ringgit in the past two years. (The Star Online)

File picture of the offices at 151 Buckingham Palace Road (Source: The Star)

Malaysia considering China’s interest in KL-SG high-speed rail project
Malaysia is taking note of China’s interest to participate in the Kuala Lumpur-Singapore high-speed rail project on the basis of international tender process. At a joint press conference yesterday, Najib said that both sides had agreed to continue to facilitate the coordinated development of the two countries’ industrial twin parks project and jointly explore cooperation in priority areas. This will include rail transportation, shipbuilding, information, communications and technology, power generation and iron and steel manufacturing. Malaysia and China yesterday signed eight government-to-government (G2G) memoranda of understanding (MOU) to improve relationship in trade, cultural and administration. (The Rakyat Post)

1MDB sells Edra power assets to China firm for almost RM10bil cash
1MDB has sold its power assets to China General Nuclear Power Corp for RM9.83 billion cash, taking it one step closer to winding down operations. China General Nuclear will assume all gross debt and cash of Edra Global Energy Bhd and its subsidiaries, and the transaction is expected to be completed in February next year. The sale is the largest announced transaction in Malaysia and one of the largest in the Asian power sector, year to date. (Bloomberg)

Ewein 3Q profit jumps 20-fold
Sheet metal manufacturer Ewein Bhd reported that is profit for the third quarter (3QFY15) jumped more than 20-fold to RM8.42 million from RM389,000 last year in the same period. Its revenue also more than doubled to RM29.21 million from RM13.42 million. The group’s early adoption of MFRS 15 has resulted in recognition of revenue from its property developments. In July, its unit Ewein Zenith Sdn Bhd began development on Wellness City of Dreams in Penang, a 50-acre wellness resort city worth RM800 million. (The Edge Markets)

Malaysia, India to collaborate on building convention centre
Malaysia and India has plans to collaborate at the government-to-government (G2G) level to jointly build a new convention centre in New Delhi, India after Indian Prime Minister Narendra Modi had indicated his desire for such an arrangement to Prime Minister Najib. Najib said he was excited over possibilities of both nations applying the same strategy for potential projects such as high-speed rail, highway and construction of new infrastructure. Both premiers yesterday signed several memorandum of understanding (MoU) to strengthen cooperation and development between both countries. (The Star Online)

Xiamen University campus in Malaysia ready for next February intake
The Xiamen University Malaysia campus in Sepang – the first overseas campus set up by a renowned Chinese university – will be ready for its first student intake in February next year. The campus will have a special faculty to study traditional Chinese medicine (TCM). Estimated to cost US$303 million (RM1.3 billion), the Xiamen University Malaysia Campus in Sepang is built on a 60-hectare site with five academic buildings, six student residences, activity centres, sports facilities and a cafeteria. (The Borneo Post)

Chinese Premier Li Keqiang (R) shakes hands with Malaysian Prime Minister Najib Razak during their talks in Kuala Lumpur, Malaysia, Nov. 23, 2015. (Source: Xinhua)