JAKS Resources to dispose of Evolve Concept Mall within a year
JAKS Resources Bhd aims to dispose the newly-opened Evolve Concept Mall in Ara Damansara, Selangor within a year to further enhance its financial position, and is in talks with several parties for the sale of the mall. The company hopes to confirm a buyer to seal the SPA within 12 months. The divestment came amidst the property sector slowdown, which has eroded property developers’ profits. A spokesperson for the company said 80% of the mall tenants are committed to opening their stores by year end, and is confident that the community-cum-lifestyle mall will do well once the LRT station next to begins operation. (The Edge Markets)
Analysts: REITs a safe haven during uncertain investment period
Real estate investment trusts (REITs) are perceived as a safe-haven for investments during times of uncertainty and increased volatility in financial markets. Analysts believe REITs listed on Bursa Malaysia offer investors an alternative investment and diversification during times of unfavourable financial markets movement especially following Brexit in which the UK voted to leave the European Union (EU). MIDF Research reported that REITs have been benefiting from the market uncertainties arose by Brexit due to its characteristics of high defensiveness and low risk which implied lower sensitivity to global market movement. While the FBM KLCI dropped last Friday, local REITs only suffered minor losses due to little exposure in Britain and European countries. In addition, growth for the REIT sector could be driven by inorganic growth as acquisition opportunity might emerge given the softer asking price for property in the sluggish market. (The Borneo Post)
Tropicana Corp, PanaHome to build innovative eco homes
Tropicana Corp Bhd is working with PanaHome Malaysia Sdn Bhd to build 272 semi-detached innovative eco homes at Cheria Residences. This is the third phase of the residential precinct at the 863-acre Tropicana Aman development in Kota Kemuning, and is expected to be completed in 2019 with a total GDV of RM358 million. PanaHome will use among others, construction methods using reinforced concrete panel technology, high-end security systems and other fitted electronic equipment for these homes. (The Star Online)
UEM Sunrise sells land to S. Korea cosmetics giant Amorepacific
UEM Land Bhd, the wholly-owned subsidiary of UEM Sunrise Bhd, has entered a sale and purchase agreement with South Korean cosmetics conglomerate Amorepacific Corp for the sale of land parcels within the Southern Industrial and Logistics Clusters (SiLC) in Iskandar Puteri, Johor. UEM Sunrise is the master developer of Iskandar Puteri. The purchase is part of Amorepacific’s global expansion strategy to invest about US$170mil (RM691mil) in Malaysia. The 25.37-acre land will house Amorepacific’s integrated centre for research and development, manufacturing and logistics of cosmetics products, which is expected to create 300 to 500 jobs. (The Star Online)
Ideal Sun City to buy commercial buildings for RM50mil
Penang-based Ideal Sun City Holdings is planning to invest RM50 million to acquire commercial buildings in Penang, Kuala Lumpur and Selangor. It plans to complete the acquisitions by the first half of 2017. The group is looking to purchase one or two properties for RM25 million in Penang to rent out, in addition to RM25 million for new factories, residential and office lots in Kuala Lumpur and Selangor. Ideal Sun City has 58 units of stratified properties in Penang and 12 light industrial units in the Klang Valley, and is currently in talks for a mixed development project in Selangor. (The Edge Markets)
Eco Horizon to buy Prai land for RM682mil
Eco Horizon Sdn Bhd, a wholly-owned unit of Eco World Development Group Bhd, has signed an agreement with Batu Kawan Development Sdn Bhd (BKDSB) to acquire a piece of land in Seberang Prai, Penang for RM681.99 million. It had also signed an agreement with BKDSB and Penaga Pesona Sdn Bhd to acquire 30.32ha at the same location for RM143.25 million. The proposed acquisitions will provide Eco World with a replacement opportunity in the form of prime land in the fast-growing industrial/commercial and residential hotspot, as well as enable the group to achieve optimal geographic spread of its total landbank acreage and gross development value (GDV). (The Star Online)
