Property News Summary – 17 August 2016

Sunway REIT benefits from Pokemon GO
Following the release of Pokemon GO in Malaysia, retail REITs are expected to remain market outperformers, with Sunway REIT seen as gaining the most from the app, according to UOB Kay Hian research. The highly-popular augmented reality (AR) game, which was launched in Malaysia on Aug 6, has created higher footfall in malls. “Although turnover revenue accounts for only less than 10% of retail REITs revenue, sustained higher footfall leads to better rental reversion. Sunway REIT has reportedly experienced a double-digit hike in average footfall at its malls with car count increasing by 10%. Similarly, Suria KLCC and Pavilion have also garnered attraction from Pokemon GO hunters,” said the research firm. Although the impact of Pokemon GO on F&B retailers is minimal, the increased number of visitors to malls could translate into higher sales. (The Edge Markets)

Sime Darby launches reverse takeover of Saizen REIT
Sime Darby Bhd is planning to develop a real estate investment trust (REIT) to generate constant and recurring income stream, starting with the reverse takeover of Saizen REIT. The REIT platform is expected to have greater flexibility in its future fund-raising exercises to build a sizeable international portfolio of assets, which Sime Darby will benefit from its direct stake in Saizen REIT. Sime Darby’s indirect units Hastings Deering (Australia) Ltd and Sime Darby Property Singapore Ltd (SDPSL) had signed an agreement with Japan Residential Assets Manager Ltd (JRAM), the manager of Saizen REIT, for the properties disposal. Under the agreement, Hastings Deering would sell some of its industrial properties in Australia to Saizen REIT in return for new units in Saizen REIT as part of the reverse takeover. (The Star Online)

People walking past a MUFG branch in Tokyo (Photo from The Star)

Japanese financier sets up RM20bil Islamic securitisation programme in Malaysia
Mitsubishi UFJ Financial Group (MUFG) has set up a RM20 billion Islamic securitisation programme in Malaysia, as Japan’s largest lender strives to become a key player in Islamic finance. As the first deal under the programme, MUFG will be issuing RM900mil in Islamic bonds (sukuk) backed by auto loans held by CIMB Islamic Bank. It is Malaysia’s first syariah-compliant auto loan securitisation, said Masumi Hamahira, adviser at MUFG’s Malaysian unit. It will offer a means of fund-raising for Islamic auto loan providers, who are expanding their businesses wit the rise of car ownership in Malaysia. Demand from investors for syariah-compliant assets are also expected to increase as EPF has given its members an Islamic investment option. Malaysia has one of the world’s largest Islamic finance sectors and authorities are keen to develop it further. (The Star Online)

SPAD to call for Klang-KL bus rapid transit proposals
The Land Public Transport Commission (SPAD) is expected to issue a ‘Request for Proposal’ for the construction of a bus rapid transit (BRT) line along the Federal Highway latest by early next year. The line will be built from Klang to Kuala Lumpur. It is hoped that enforcement on special lanes or building a dedicated lane for the BRT will improve bus services. SPAD CEO Mohd Azharuddin Mat Sah said the current bus lanes around the city centre were not very effective, but the proposed BRT would have a special guideway. He also pointed out that BRT buses are cheaper than the LRT. (The Star Online)

3PAN to take over PPR projects
The National Public Housing Management Corportation (3PAN) will be taking over all projects under the People’s Housing Projects (PPR) soon. Deputy Urban Wellbeing, Housing and Local Government Minister Datuk Halimah Mohamed Sadique said the move was part of the government’s initiative to improve the PPR’s management. It would be more appropriate for the ministry itself to carry out the responsibility of collecting rent and maintaining the PPR projects as they were constructed by 3PAN. Previously, state governments were tasked with rental collection and maintenance, but some faced problems such as high rent arrears and poor maintenance. The new management would also cover works on improving infrastructure to ensure the comfort of those who live in PPR areas. (The Sun Daily)

Malaysia marches into men’s doubles finals, cycling bronze in Rio Olympics
Malaysian badminton doubles pair Goh V Shem-Tan Wee Kiong have advanced into the finals of the men’s doubles in the Rio Olympics, after defeating China during the semi-final match. Goh and Tan are now guaranteed at least a silver medal in the men’s event of the competition. The match ended 21-18, 12-21, 21-17 after three sets. At the same time, national elite rider, Azizulhasni Awang won Malaysia a bronze medal in the keirin (motor-paced cycle racing) event yesterday. The 28-year-old Melbourne-based rider crossed the finishing line for the bronze behind defending champion Jason Kenny from Britain and Dutchman Matthijs Buchli. “I dedicate this medal to all Malaysians and to my wife and kids who sacrifice alot over the years,” said the rider, who is known as ‘Rocket Pocket Man’ for his pint-size body. (The Star Online; The Sun Daily)

[Left] Jubilation on the faces of Malaysian badminton doubles pair Goh V Shem-Tan Wee Kiong after winning the semi-finals match (Photo from The Star) | [Right] National elite rider Azizulhasni Awang kissing his bronze medal for the keirin event (Photo from The Sun Daily)