Mah Sing top pick in Malaysian property market
In a recent strategy report by Macquarie Research, property developer Mah Sing Group Bhd was chosen as the top pick for the Malaysian property market due to its ability to lure first-time home buyers and upgrades at affordable price points. Macquarie analyst Aiman Mohamad said that Mah Sing was not only pricing its properties right, but is also hugely exposed in the central region. Given the current property market situation, Mah Sing will continue to retain is exposure into 2016, especially in the central region, which has a better demand-supply match for launched properties. However, the report notes that high-end segment developers may not be favourable, as the slump in oil prices has seen a lot of layoffs in the oil and gas industry, which form the majority of high-end segment buyers. (The Malaysian Insider)

PR1MA homes cannot be sold for 10 years
The 1Malaysia People’s Housing Project (PR1MA) has set a moratorium period of 10 years on PR1MA homeowners to curb price speculation and generate wealth for the buyers. This means that buyers of affordable homes under the scheme were not allowed to sell or rent their PR1MA homes without permission during the period. This is one of the mechanisms for PR1MA homeowners to generate wealth after the moratorium period expires and the price of the houses have increased. PR1MA has developed a business model involving strategic partnership with private developers, whereby PR1MA will purchase the entire project from private developers on its land en bloc in order to be sold to applicants. (Daily Express)

Tanco targets RM140mil sales from PD suites
Property developer Tanco Holdings Bhd is aiming for RM140 million in sales for the serviced suites at its water theme park Splash Park in Port Dickson, Negri Sembilan. The serviced suites are under the first phase, comprising two blocks with a GDV of RM300mil, and is slated for completion in 27 months. Splash Park, spread over 9.2 ha, will also feature the largest Play Ship in Malaysia, a hotel and an 18-hole golf course. Tanco is also targeting foreign buyers, as the company was granted a special exemption by the state government for resort/hotel-based property. Group managing director Andrew Tan Jun Suan said to-date the company had secured sales of about RM90mil for the project. (The Star Online)

Scale model of the Splash Park development at Port Dickson, Negri Sembilan (Photo from The Star)

Scale model of the Splash Park development at Port Dickson, Negri Sembilan (Photo from The Star)

PanaHome joins venture with MKH
PanaHome (M) Sdn Bhd, the local property arm of Japan’s Panasonic Group, has formed a joint venture company with local property developer MKH Bhd to provide home solutions for development projects by MKH. The JV company, PanaHome MKH (M) Sdn Bhd, will see PanaHome and MKH’s subsidiary Kajang Resources Corporation Sdn Bhd hold 51% and 49% respectively. The company plans to open showrooms to enable customers to visualise and experience first-hand the various living spaces it can offer. The JV aims to offer solutions and proposals for housing in Malaysia by combining MKH’s expertise in real estate business development with PanaHome’s technology, construction expertise and ideas for quality and sustainable living. (The Star Online)

Pos Malaysia accepts RM835mil offer from DRB-Hicom
Pos Malaysia Bhd has accepted the conditional offer from DRB-Hicom Bhd for its entire stake in KL Airport Services Sdn Bhd (KLAS) and a parcel of freehold industrial land in Petaling Jaya, Selangor to the postal services company for a total amount of RM835.16 million. On Dec 10, DRB-Hicom had issued an offer to sell its entire equity interest in KLAS and the parcel of land (held by an indirect wholly-owned subsidiary) to Pos Malaysia. (The Star Online)

Iskandar project key to turnaround for MPCorp
Malaysia Pacific Corp Bhd (MPCorp) is banking on its upcoming residential project in Taman Nusa Damai, Iskandar Malaysia, Johor to help pull it out of its loss-making position. The RM204 million project is being developed jointly with Bina Puri Holdings Bhd. The proposed development is slated to commence in two years, and will be a key project in improving the group’s business. However, its CEO Charles Ch’ng reasons that the group’s turnaround will not happen overnight; the company has appointed new board members, confirmed projects and has new management to facilitate changes. (The Edge Markets)

Gamuda posts lower 1Q profit
Gamuda Bhd posted a 13% dip, from RM185.85mil to RM161.23mil, in its net profit for the first quarter ended Oct 31, 2015 compared to the same quarter a year ago. The decrease was attributed to the completion of the electrified-double tracking railway project in November 2014 and softening of the local property market. Its revenue, meanwhile, dropped to RM512.80mil from RM569.64mil a year earlier. Its construction division saw an increase in revenue due to higher work progress of the MRT Line 1 project, which was 76% complete as at November 2015 and scheduled to be fully completed by 2017. (The Star Online)