1MDB: Debts will be cleared by year-end
1Malaysia Development Bhd’s rationalisation plan to clear the company’s debts by year-end is on track, after which it plans to focus solely on property development. 1MDB achieved a major milestone this week when it sold its entire Edra energy assets to China General Nuclear Power Corp (CGN) for RM17 billion (RM9.83 billion cash plus debts assumed by buyer). The group’s remaining debts will be RM25 billion. The next step would be the sale of the 60% stake in Bandar Malaysia Sdn Bhd, with an agreement expected to be signed by year-end, said 1MDB president Arul Kanda. Bandar Malaysia is currently valued at RM10 billion – RM11 billion. The company plans to keep its 100% stake in the Tun Razak Exchange (TRX). (New Straits Times Online)
Minister: Malays too poor to own property in Penang, Selangor
Minister in the Prime Minister’s Department, Datuk Seri Azalina Othman, said that Malay property ownership in Penang and Selangor is seen to be low, large because the bottom 40% (B40) of the community are to poor to buy them. There is basis to the concerns about the affordability of the Malays to own land and houses, as seen from examples in Penang and Selangor where residential land and housing projects are too expensive and Malays cannot afford to buy them, especially those from the low income B40 group. This indirectly leads to a drop in Malay ownership of property assets. “Expensive” home prices have become a perennial problem in Malaysia, with many Malaysians across race saying that property is virtually unaffordable to most wage earners, creating the risk that the country could face a “homeless generation”. (The Malay Mail Online)
IGB Corp Q3 earnings up 37.6%
Property developer IGB Corp Bhd saw its third quarter earnings rise by 37.6% year-on-year to RM45,09mil, attributed to higher contributions from its retail property investment and hotel divisions. This was despite a 5.3% drop in revenue for the quarter ended Sept 30 from a year earlier. The biggest revenue contributor to the group remained retail property investment, followed by hotel and property development segments. Its retail property investment and property development division saw revenue increase by 5% each. (The Star Online)
DRB Hicom proposes 51% acquisition of Media City; taps into property project
DRB Hicome Bhd has proposed the acquire a 51% stake in Media City Ventures Sdn Bhd for RM85.68 million cash, which will allow it to tap into a mixed development project. It will also allow the group to jointly undertake the planning, design and completion of new facilities and infrastructures for the development, including the broadcast equipment and system on the existing premises of Angkasapuri covering an area of about 15.72 acres. Media City Development Sdn Bhd, being the parent company of Media City Ventures, holds a 23-year concession from the Ministry of Communications and Multimedia and will undertake the installation of the broadcast equipment and system along with other services for Angkasapuri. (The Edge Markets)
Malaysia’s Battersea Power Station wins ‘Developer of the Year’ in London
The Battersea Power Station development, which is owned by a Malaysian consortium comprising SP Setia, Sime Darby and EPF, has won the “Developer of the Year” award at the 2015 International Emirates Glass LEAF ceremony in London recently. The LEAF (Leading European Architects Forum) awards panel reviewed entries from around the world and judged the Battersea Power Station to be the most compelling nomination for the Developer of the Year category. (The Rakyat Post)
Putrajaya to get another 5,000 PPA1M houses
Another 5,000 units of the 1Malaysia Civil Servants Housing (PPA1M) under phase 3 will be built in Putrajaya, and expected to kick off in the second quarter of 2016. With the addition of PPA1M phase 3, a total of 16,000 units would be built in Putrajaya by 2019. For phase 1, 78% out f the 10,020 applicants had completed their balloting session, while the remaining 22% will have the balloting session carried forward. Phase 1 of the PPA1M project is expected to begin early next year and completed in 2019. The apartment units under PPA1M are all sold between RM150,000 to RM300,000 while available sizes are 1,000 sq feet, 1,200 sq feet and 1,500 sq feet. (New Straits Times Online)
More incentive for Masteel-KUB intercity rail
The joint venture between Malaysia Steel Works (KL) Bhd (Masteel) and KUB Malaysia Bhd has received an added impetus for its proposed inter-city rail transit project, that will link Iskandar Johor to Woodlands in Singapore. The JV has presented the plan for the proposed train depot and other assets as required by the Transport Ministry. It is said the Kempas land has been earmarked for the construction of the proposed commuter train depot. Masteel will hold a 60% stake in the JV and KUB the remaining 40%. (The Star Online)
