Hektar REIT to focus on more assets outside Klang Valley
Hektar REIT is actively looking to acquire more assets outside of the Klang Valley to bolster its financial performance. The REIT is venturing outside the Klang Valley as yields are better, and it has become a saturated location for retail assets where it is tough to find property that meets its criteria. An important consideration for the REIT is opportunities for further value creation in the future through the creation of an additional lettable area in the long term. Hektar REIT’s shopping mall portfolio includes Subang Parade, Mahkota Parade, Wetex Parade, Central Square, Landmark Central, and is in the midst of acquiring 1Segamat Shopping Centre. (The Edge Markets)

UMLand’s Citadines Medini to offer buy-and-leaseback option
United Malayan Land Bhd (UMLand) will be launching its first hotel-branded residence Citadines Medini by September, and buyers will be offered a buy-and-leaseback option. Located at the developer’s 30-acre integrated development UMCity Medini Lakeside in Medini, Iskandar Malaysia in Johor, the project with a GDV of RM175 million will house 214 serviced apartment units in a single 25-storey tower. A soft launch in Singapore will be held in August, with an official launch slated for September. Upon completion, the residences will be managed by Ascott Ltd. Purchasers will have the option to lease their units back to Citadines to be run on their behalf as a long-term investment. (The Edge Markets)

Artist’s impression of Citadines Medini by UMLand (Image from i2M)

Sunway set to list healthcare arm in 2019
Sunway Bhd is planning to list its healthcare business in two years’ time. The healthcare business is said to be the way forward for the group, and it plans to build five more hospitals with capital expenditure of RM1bil. The listing will pave the way for Sunway to expand not only in Malaysia but also beyond local shores. Besides the hospital currently under construction in Sunway Velocity in Cheras, which will be completed by end 2018, there is another in Sunway Damansara, one in Ipoh, two in Penang, and one in Sunway Iskandar, Johor. (The Star Online)

SP Setia hungry for more Australian developments
SP Setia Bhd, which is preparing to launch its two latest projects in Melbourne, Australia, this year, is on the lookout for more land down under. The company is keen to expand in Australia, and is looking for more development sites in Sydney. It has five projects in Melbourne at the moment: Fulton Lane, Parque Melbourne, Maison Carnegie, as well as the soon-to-launch Exhibition Street development and The Marque mixed development. (The Edge Markets)

Encorp sets conservative income target for FY17
Encorp Bhd expects revenue of at least RM350 million for the current financial year ending Dec 31, 2017 (FY17), driven by unbilled sales in two projects — Encorp Marina Puteri Harbour in Johor and Akasia at Encorp Cahaya Alam in Selangor. The figure is 2.58% lower than last year’s. “Earnings will also be anchored by our latest projects in Bukit Katil, Melaka, and Dahlia at Encorp Cahaya Alam, which we expect to launch within the second half of this year,” said its CEO Datuk Zakaria Nordin. (The Edge Markets)

A “Don’t mess with Melaka” billboard (Photo from Hype MY)

Melaka drops to fourth place, not the cleanest state anymore
Melaka’s status as the cleanest state in Malaysia has now dropped to fourth place. Terengganu emerged top in the list compiled by the Tourism Ministry, followed by Perak and Penang. Sabah placed fifth after Melaka. The drop in ranking was due to lack of awareness among the public about the importance of cleanliness, as well as motorists throwing rubbish from their vehicles. Cigarette butts and food wrappers amounted to the most waste thrown out by litterbugs from their vehicles. Undercover council enforcement officers will issue on-the-spot compounds of RM150 to RM500 against those who are caught throwing rubbish from their vehicles. (The Star Online)

Singapore’s WCG IPO 2.1 times subscribed
World Class Group (WCG), the property development arm of Singapore’s Aspial Corp, said that its initial public offering was approximately 2.1 times subscribed. The company said it intends to use the net proceeds of about S$21.9 million for the acquisition of properties and construction, as well as other related costs in connection with the development properties. The Singapore-based real estate company that develops and invests in property in Malaysia and Australia, and is planning to acquire new properties in Australia, Indonesia, Malaysia, New Zealand and the Philippines. (The Straits Times)

Indonesia’s Bank Mandiri to open first branch in Malaysia
Bank Mandiri, Indonesia’s leading commercial bank, will be opening its first branch in Malaysia within the next few months. Bank Negara Malaysia had given the green light to Bank Mandiri’s “Qualified Asean Bank” (QAB) status application recently, reported Koran Tempo. The newspaper quoted Bank Mandiri’s CEO, Kartika Wirjoatmodjo, as saying that the bank is currently finalising its proposals and that it was expecting to receive its operating licence by August this year. RM300mil is being allocated to fund the opening of its Malaysian branch, while its capital would be injected in three stages, with an initial commitment of around RM100mil. (The Star Online)