Thailand, Malaysia discuss land transport connectivity
Thailand and Malaysia had their first cross border land transport and tourism connectivity in Bangkok yesterday. Daroon Saengchai, Deputy Permanent Secretary for Transport and Spokesman of the Transport Ministry, said that the two countreis discussed facilitation for land transport for passengers and cargoes. During the meeting Thailand proposed a memorandum of understanding while Malaysia expressed interest in a joint venture to acquire locomotives and cargo trains for services in southern Thailand as well as a proposal to increase the number of train trips in the South. (Bernama)
Sunway eyes property sales of RM1.4bil this year
Sunway Bhd is targeting property sales of RM1.4 billion across the region this year, even as its property division announced RM1.6 billion worth of launches. Last year, the group achieved sales of RM1.2 billion. An estimated 70% of the launches this year would be in the Klang Valley with GDV of RM1 billion, with other launches in Johor (GDV RM400 million), Ipoh and Penang (combined GDV RM200 million). Despite the challenging property market, the group said it enjoyed an average take-up rate of 80% for four of its launches in Bangi, Cheras, Ipoh and Johor over the last four months. (The Star Online)
AZRB unit to develop Kwasa Land’s site
Kwasa Land Sdn Bhd has signed a development rights deal with Ahmad Zaki Resources Bhd’s (AZRB) subsidiary to develop the R3-4 site, covering 3.91 acres of freehold land in Kwasa Damansara. The proposed development will consist of 188 freehold high-rise condominium units and 26 garden villas. Among the units offered are dual-key units with features such as double volume living area, master bedroom with walk-in wardrobe, additional wet kitchen for Asian cooking and a dedicated storeroom. (The Star Online)
Naza TTDI, Hap Seng Land to jointly develop KL Metropolis project
Naza TTDI Bhd has signed a joint agreement with Hap Seng Land Development Sdn Bhd to develop the KL Metropolis project located off Jalan Duta, Kuala Lumpur. KL Metropolis is a 75.5-acre mixed development that is slated to provide the country’s largest exhibition space in a single location. This is Naza TTDI’s third and largest joint venture involving the development of a 8.95-acre plot. The previous two agreements were with Nusmetro Property Sdn Bhd to build three iconic residential towers on 3.29 acres of land targeted for completion by 2019, and with Keystone Impetus Sdn Bhd to establish two blocks of office building on 2.47-acres estimated to complete by 2021. The three joint collaboration will be part of the development’s first phase. (The Star Online)
Mitec will be part of the KL Metropolis development (Photo from The Star)
MRCB back to black in 4Q with RM26.8mil profit
Malaysian Resources Corp Bhd (MRCB) returned to the black with a net profit of RM26.8 million in 4QFY15 from a net loss of RM5.27 million a year ago. However, its revenue dropped 20.3% to RM388.2 million in 4QFY15 compared to the same quarter a year ago. The group’s return to profit was attributed to the completion of Q Sentral, the sale of Platinum Sentral and other investments, as well as contributions from ongoing residential development projects including Sentral Residences and 9 Seputeh. For FY15, the property and infrastructure developer recorded a 116.46% jump in net profit to RM330.39 million compared to FY14. Its revenue for FY15 grew to RM1.7 billion, up 12% from RM1.5 billion in FY14. (The Edge Markets)
Econpile counting on infrastructure works to prop up earnings
Malaysia’s largest piling contractor, Econpile Holdings Bhd, is counting on the infrastructure sector to hold up its earnings amid a slump in the property development sector. The group is currently bidding for some RM1 billion worth of piling jobs mainly in the infrastructure sector, is is confident of securing at least 15% of it. The group has already bagged contracts worth about RM200 million in 1HFY16. The group says it is like to secure some jobs, such as piling works for the East Klang Valley Expressway and the MRT Line 2 projects, and is also bidding for projects like the Sungai Besi-Ulu Kelang Expressway, the Damansara-Shah Alam Elevated Expressway and the Duta-Ulu Kelang Expressway. In addition, the group is exploring more opportunities to work with its existing Chinese partners. (The Edge Markets)
QI Group to grow property segment
Hong Kong-based conglomerate QI Group is aiming to grow its property segment as a second source of revenue to help cope with the economic slowdown. Founder and Executive Chairman Datuk Seri Vijay Eswaran said about 60% of the group’s earnings are currently derived from the e-commerce and direct sales segment, and hopes to lower the contribution to 30% following its property segment expansion. QI Group recently signed an agreement with a Chinese company to develop the Qi City project in Bandar Meru Raya, Ipoh worth RM1.1 billion. Malaysia’s contribution to QI Group’s earnings is currently only 10%, but expects the figure to increase to 25% after the completion of the Endau-Rompin resort project in 2017. (The Malaysian Insider)
