Pavilion REIT to buy The Intermark Mall for RM160mil
Pavilion REIT has signed a sale and purchase agreement with The Intermark Sdn Bhd for the acquisition of the six-storey The Intermark Mall, together with 367 parking bays, for RM160 million cash. The retail building forms part of The Intermark mixed development in Kuala Lumpur. The deal also includes The Intermark providing Pavilion REIT with a rental guarantee of RM15 million for three years, which is estimated to give a net yield of 6.1% per year. (The Malaysian Insider)
KWAP sells office building in London for £270mil
Malaysia’s second-largest pension fund, Kumpulan Wang Persaraan (Diperbadankan) (KWAP), is planning to dispose an office building in central London for £270 million ($402mil), in response to a government call to repatriate funds to prop up the country’s weakening stock and currency markets. The fund, which has about RM120 billion of assets, is finalising an agreement to sell an office building at 88 Wood Street in London that it bought in 2013 for £215 million, standing to benefit from real estate and foreign currency gains. (The Edge Markets)
Ringgit no longer responding to price of oil and commodity, will rebound in 2016
Following KWAP’s announcement of its disposal of a London property for £270 million, MIDF Research said that the move is one of the indications of the market’s perception that the ringgit is bottoming. The research house said local funds are repatriating their capitals to Malaysia to take advantage of the weak ringgit to realize their currency gains. Despite the fact that oil prices continue its downtrend, there is little change to the ringgit, which seems to no longer respond to the price of oil and commodity indicating diminished relationship between the two. It believed that the ringgit downfall is bottoming and will begin to rebound in 2016. (The Edge Markets)
Top: The “cross” on the rooftops which caused the controversy; Bottom: After painting over part of the roof
Developer paints over Langkawi rooftop ‘crosses’, plans redesign
The developer of the Langkawi houses with the “cross”-shaped rooftops has painted over the air wells in the housing project, and has agreed to redesign them, said Langkawi authorities. The Star reported that the Langkawi Municipal Council has announced that the developer of the newly-completed housing project in Kelibang, Langkawi, would submit new design proposals within a month. A photo of the houses’ rooftops recently surfaced on social media and had drawn controversy due to the juxtaposition of its air wells and fire breaks that resembled a cross. (The Malay Mail Online)
LTH land in TRX too profitable to sell
Minister in the Prime Minister’s Department Datuk Seri Jamil Khir Baharom said Lembaga Tabung Haji’s (LTH) plot of land in the Tun Razak Exchange (TRX) is a great investment asset with promising returns, and that it would be unwise to sell it now. This was in reply to questions about the delay behind LTH’s plan in May to sell the 1.56-acre plot, which the fund had purchased from 1MDB for RM188.5 million in April amid much scrutiny from various parties. LTH has yet to sell off the land despite promising to do so by end of May. (The Malay Mail Online)
Related news: Tabung Haji in process of sellling TRX land
Petaling Tin to sell Selangor land for RM45mil
Petaling Tin Bhd is disposing of five parcels of land in Ulu Yam, Selangor to property developer Ringgit Muhibbah Sdn Bhd. The land totalling 116.11 acres will be sold for a combined RM45.59 million cash to unlock the lands’ value and improve Petaling Tin’s cashflow. The land is designated for mixed development of residential and commercial use, located in the outskirts of Ulu Yam Baru, about 8km off the Kuala Lumpur-Ipoh trunk road. Upon completion of the proposed disposal, the group is expected to realise a net gain of disposal of RM28.98 million. (The Malaysian Insider)
