Sime Darby to sell Australia, Singapore real estate assets
Sime Darby Bhd, the world’s largest palm oil planter by land size, is looking to sell its real estate assets in Australia and Singapore in a move to cut down on debt. According to chief executive Mohd Bakke Salleh, the company hopes to wrap it up by March and raise up to RM1.8 billion from the sale. Sime Darby owns 13 properties in Australia and 3 in Singapore. The conglomerate reported a 22 percent drop in second quarter profit earlier in the day, as it struggled with weak commodity prices and consumer demand. (Reuters)
Global fund managers interested in Malaysia’s strong fundamentals
Exchange-holding company Bursa Malaysia Bhd and regional investment bank Maybank Kim Eng said global fund managers had expressed strong interest in investing in Malaysia after learning more about the country’s fundamentals during the Invest Malaysa 2016 Conversations in San Francisco. Malaysia’s relatively resilient market, in comparison to regional peers, had received positive sentiments among fund managers. The meeting held last Wednesday involved Malaysian policymakers and 16 global fund managers who collectively represented total assets of more than US$7 trillion (RM29.6 trillion). One of the main attractions of Malaysia’s equities market is that it offers the growth opportunities of an emerging market, but the market infrastructure and regulatory framework of a developed market. (The Star Online)
Fiamma to launch projects worth RM500mil this year
Fiamma Holdings Bhd is planning to launch three property projects with a combined GDV of RM500 million this year, which is expected to bring in more than 10% of property sales to the group in the next three to four years. The first to launch is a 43-storey apartment project called East Parc @ Manjalara with GDV of over RM300 million. The other two projects will be shop houses and linked houses in Kota Tinggi, Johor and a serviced apartment development in Johor Baru, worth a combined GDV of RM180 million. The three projects are expected to begin contributing to the group’s FY17 earnings. (The Edge Markets)
Paramount’s 2015 earnings driven by property segment
Paramount Corp Bhd saw its year 2015 earning grow 8% to RM67.68 million compared to the previous year, driven mainly by the property division. Revenue was 13% higher at RM576.03mil due to contributions from its property and education divisions. The property division posted higher revenue due to sales and progressive billings on Sejati Residences in Cyberjaya, Utropolis in Glenmarie, Shah Alam, Sekitar26 Business in Shah Alam and Bukit Banyan in Sungai Petani developments, offsetting the lower revenue from the construction sector. Revenue for its education division grew to RM147mil with higher new student enrollments from primary, secondary and tertiary schools. (The Star Online)
Ideal Sun City targets RM40mil contracts by August
Penang-based property management service provider Ideal Sun City Holdings Bhd aims to bag three contracts worth a combined RM40 million in the next six months, propelling its transfer to Bursa Malaysia’s Main Board in a year’s time. The contracts – two in Kuala Lumpur and one in Penang – are expected to contribute 50% growth in revenue for FY16. The group will be signing two property management contracts worth a total RM29 million soon, and will be signing a RM3 million hotel project management deal in the next few days. The other project involves a mixed development project called Publika Penang on Jalan Tun Dr Awang in Bayan Lepas with a gross development value of RM1.5 billion with property management value of RM24-RM26 million. (The Edge Markets)
Protasco’s sees RM20.2mil net profit in 4Q
Protasco Bhd recorded a net profit of RM20.2 million for 4QFY15, compared to a net loss of RM4.07 million a year ago, contributed mainly by its construction segment. The group’s revenue rose 15.7% due to improved contributions from its maintenance, construction and property development segments. For the full FY15, it jumped back into the black with net profit of RM66.24 million, compared to a net loss of RM46.44 million a year before. Its revenue was also 21.7% higher compared to FY14. Protasco expects to launch its Rimbawan Residences @ De Centrum project in March 2016 and is preparing to open its shopping mall, Gallerie @ De Centrum in April 2016. (The Edge Markets)
