Brexit may impact Malaysian PLCs in UK property and casinos
Britian’s exit from the European Union (EU), which could include a potentially slower UK economy and weaker Brisih pound, may impact only a few Malaysian public-listed companies (PLCs) which are involved in property development, regulated assets and casino operations. Major Malaysian investments in the UK are in property developments (Battersea by SP Setia, Sime Darby), regulated assets (YTL Power), casino ops (Genting Malaysia (GENM), and renewable energy (KNM Group). A slower UK economy could affect future take-ups at Battersea but fortunately the project has locked in sizeable sales which have yet to be recognised. However, a weaker pound should results in lower Malaysian ringgit profits. It could also affect profits at Genting Malaysia’s UK operations. (The Star Online)
Hap Seng buys Kuala Selangor land for RM9.3bil mixed development
Hap Seng Consolidated Bhd is acquiring 36 parcels of freehold agriculture land measuring a total of 1,449.52 acres in Kuala Selangor for RM228.75 million, to develop a mixed development with an estimated GDV of RM9.3 billion. The purchase will strengthen its presence in Peninsular Malaysia and expand its land bank, in order to sustain its core property development business and enhance future earnings. It intends to build a “guarded and gated lifestyle residential properties with commercial components” on 20 plots of land totalling 734.83 acres, with a GDV of RM5 billion over 15 years. The remaining 16 plots of land will be the site for a proposed mixed development township with affordable housing with estimated GDV of RM4.3 billion. (The Edge Markets)
Property Report Congress 2015
Property Report Congress Malaysia 2016 to be held in KL this August
The Property Report Congress Malaysia 2016, the country’s biggest real estate conference where Asian real estate leaders meet, will be held on 11 August at the InterContinental Kuala Lumpur. It is the fourth conference this year following Manila, Ho Chi Minh City and Yangon. The event will feature keynote addresses and panel discussions on crucial issues that will impact the Malaysian property market, such as foreign investment, urban development, technology in real estate, and online marketing. The Property Report Congress will be followed by the third annual South East Asia Property Awards (Malaysia) 2016 black-tie gala dinner, which will be attended by more than 250 of the country’s top real estate developers, executives and industry professionals. (Property Report)
MSC acquires land, assets in Westport for RM50mil
Malaysia Smelting Corporation Bhd (MSC) is buying three parcels of land at Pulau Indah Industrial Park, Westport for RM50 million, which includes the plant and machinery on the properties, from Metal Reclaimation (Industries) Sdn Bhd. It is paying RM32.5 million for the three plots of leasehold land and buildings built on it, and RM17.5 million for the plant and machinery. The proposed acquisitions will present the company with new manufacturing facilities and opportunities to execute its business plan. (The Edge Markets)
Grand-Flo eyeing higher revenue from property
Tracking solutions provider and property developer Grand-Flo Bhd is eyeing higher revenue from its property division, in line with its construction progress, for FY16. The company has two on-going projects located on mainland Penang, namely Vortex Business Park and The Glades. Vortex Business Park in Batu Kawan is a commercial and industrial development with RM220mil GDV that has 80% take-up rate, while The Glades with GDV of RM63mil features landed residential properties in Bukit Mertajam, with a take-up rate of 30%. The company is also seeking land bank in the Klang Valley area, and would be announcing a new project within one year. (The Star Online)
Inflation up in May on rising food costs
Malaysia’s inflation rate rose 2% in May due to rising food costs, in line with economists’ forecast. Food and non-alcoholic beverages moderated slightly to 4.1%, declining for the third consecutive month. Prices of fresh fish, personal care items and garments went down, while that of fresh vegetables continued to rise. This was attributed to tight supply and weaker ringgit, as the bulk of vegetable are imported. The higher index for food and non-alcoholic beverages was due to increases in three food sub-groups – index for vegetables (+15.3%); fish and seafood (+6.6%) and fruits (+6.1%). (The Star Online)
