Landed properties in demand despite property glut
Demand for landed residential units remains high despite the current property glut and confidence issues among property buyers, said CBRE|WTW managing director Foo Gee Jen. Some developers are registering good sales for landed and affordable homes, while high-rise developers are having to offer a lot more freebies and even financing. He emphasised that one of the biggest issues facing the current property sector is not oversupply, but instead a mismatch of supply and demand, for example, low-cost housing in areas that are not accessible to the proper target audience. (The Star Online)
UEM Sunrise unveils phase 3 of Melia Residence development
UEM Sunrise Bhd had launches phase three of its Melia Residence in Iskandar Puteri, Johor, following close to RM206 million in sales for its first two phases within days of launching. The housing project has five phases in total with a total GDV of RM573 million, with the final two phases to be launched next year and slated for completion in 2020. Chief operating officer (commercial) Raymond Cheah said that phase three of the Melia Residence, which comprises 160 terrace houses, has recorded a 51% take-up rate, with good response from the local and Singapore market. (The Star Online)
Ekovest reaping benefits of diversification and expansion
Since early April, Ekovest Bhd shares have risen by more than 60%, with stock trading at 66 times its earnings. The company is now making more efforts in engaging and explaning its value proposition to investors, with discussion centred on its business model and ambitious projects in the pipeline. Ekovest’s business model is a bit unique as it is a construction company, but it also has a property development arm and a highway toll concession business. Ekovest has been accumulating land along Jalan Pahang and Jalan Gombak to undertake ambitious projects that could change the landscape of the area. One such project is the EkoRiver Centre, located along Jalan Pahang, that is estimated to have a GDV of RM2.11 billion and consisting of three residential blocks, a shopping mall, and 80-storey office tower. (The Star Online)
HCK Capital subsidiary in JV for Kuching housing development
HCK Premier Builders Sdn Bhd, an indirect 70% subsidiary of HCK Capital Group Bhd, is jointly developing housing units in Kuching, Sarawak, with Daya Builders Sdn Bhd (DBSB). The joint venture is to develop 147 terrace houses, 18 semi-detached houses, and 144 apartment units on a tract of 22.45-acre leasehold land. The Housing Development Corp of Sarawak (HDC) is the registered proprietor/beneficial owner of the land. HSCK Premier Builders will be undertaking the development and construction of the units. The project will be developed in phases, and each phase is expected to be completed within 36 months from the commencement date. (The Edge Markets)
Hap Seng eyeing new assets amid slowdown
Hap Seng Consolidated Bhd is taking advantage of the economic slowdown to hunt for new assets. The group has businesses in property, palm oul and building materials. Managing director Datuk Edward Lee Ming Foo said the group is open for merger and acquisition deals and is looking to purchase more land for its property development projects. At its recent EGM, shareholders approved the acquisition of Malaysian Mosaics Sdn Bhd for RM380mil, and the disposal of Hap Seng Commercial Vehicle Sdn Bhd (HSCV) for RM750mil. The group’s property development unbillled sales now stood at RM750mil, while its launches in 2016 will include the RM1 billion Aria Luxury Residences located along Jalan Tun Razak, Kuala Lumpur, and the Balakong residential and commercial development with a GDV of RM900mil. (The Star Online)
Hap Seng 1Q net profit up 26.4% on land sale gains
Hap Seng Consolidated Bhd recorded a net profit increase of 26.4% for 1QFY16 from a year ago, due to gains from the disposal of land. It reported a revenue of RM1.05 billion for 1QFY16, which was 2.7% lower than the same period last year. Higher revenue was recorded by its credit financing, automotive, fertilizer trading and building materials divisions but was offset by lower revenue from the plantation and property divisions. However, the negative impact of the El Nino weather phenomenon is expected to continue beyond this period. Its property division’s investment properties continue to maintain optimum occupancy and rental rates, with Menara Hap Seng 2 and Plaza Shell expected to contribute to the overall performance. (The Edge Markets)
Tropicana Corp records higher core profit of RM15.2mil
Tropicana Corp Bhd recorded net profit of RM15.17 million in its first quarter ended March 31, lower than the corresponding quarter last year due to a one-off gain of RM5.9mil from land sale. Excluding contribution from its disposed subsidiary Tenaga Kimia Sdn Bhd, the group said its net profit for the quarter was up by 2.8% from a year ago. Tropicana said its performance for the quarter was satisfactory, driven substantially by the group’s property development division. Its unbilled sales stoof at RM3 billion as at March 31, 2016 and would continue to fuel the group’s earnings performance for the next two to three years. (The Star Online)
Submarine deployed to search for crashed EgyptAir plane
A submarine has joined the search in the Mediterranean Sea for the black boxes that could reveal what caused the crash of EgyptAir Flight 804 last week. The plane disappeared from radar on a flight from Paris to Cairo. Search and rescue teams have recovered parts of the plane wreckage, including passengers’ belongings, life vests, chairs and even body parts, but there is still no sign of the plane’s fuselage. Authorities haven’t said what caused the Airbus A320, which had 66 people aboard, to crash into the sea. (CNN)
A search operation of the missing EgyptAir plane. Egypt found wreckage including seats and luggage on May 20 from the EgyptAir plane that crashed in the Mediterranean, as investigators tried to unravel the mystery of why it swerved and plummeted into the sea. Search teams spotted personal belongings of passengers and parts of the Airbus A320 about 290 kilometres (180 miles) north of Egypt’s coastal city of Alexandria. -Stephane Dzioba / SIRPA Marine / AFP
