REIT managers welcome SC, Bursa moves
The Malaysian REIT Managers Association (MRMA) applauds the Securities Commission (SC) and Bursa Malaysia in taking proactive measures to liberalise the Malaysian REITs market through the issuance of the New Guidelines on Real Estate Investment Trusts and update on the Main Market Listing Requirements. The move is timely to facilitate the growth of the M-REITs market, addressing the regulatory gaps between M-REITs and other established regional REIT markets. There are a total of 18 listed M-REITs, including three Islamic REITs and one Islamic stapled REIT. The liberalisation provides alternative growth opportunities to M-REITs in the areas of acquiring vacant land to undertake property development activities, acquisition of assets with provision of income support and investments through private leases. (The Star Online)
CBRE | WTW: Secondary market driving property prices
The declining prices of properties on the secondary market – by as much as 6% in some cases – will affect primary market prices, prompting property developers to amend their offerings to control costs, said CBRE | WTW managing director Foo Gee Jen. 2018 is expected to be a flattish market – volume may pick up a little bit, driven by transactions of affordable housing and homes priced below RM500,000. The decline in property transaction volume and value has slowed, with residential properties continuing to dominate the market, accounting for 62.4% of transacted volume and 49% of transacted value. (The Edge)
CMMT posts lower 1Q NPI on lower contribution from Klang Valley malls
Capitaland Malaysia Mall Trust’s (CMMT) net property income (NPI) fell 4.5% year-on-year in 1QFY18, dragged by lower contribution from its Klang Valley shopping malls and an office tower. Lower contributions from Sungei Wang, Tropicana City Property and The Mines offset higher rental rates achieved from the group’s Gurney Plaza and East Coast Mall. For its Sungei Wang Mall, Low said CMMT plans to reconfigure the annex space into a vibrant and energetic lifestyle zone that complements retail offerings in the BBKLCC shopping belt, which will be rebranded as Jumpa and targeted to be completed by 1QFY19. (The Edge)
GuocoLand 3Q net profit surges sixfold, lifted by disposal gains
GuocoLand (Malaysia) Bhd reported an almost sixfold increase in its net profit to RM55.69 million for 3QFY18, from RM8.34 million in the previous year’s corresponding quarter, due to the gain on disposals of several assets during the quarter. The group disposed its entire interests in JB Parade Sdn Bhd and PD Resort Sdn Bhd to GuocoLand Hotels Pte Ltd, resulting in a gain of approximately RM104.8 million. “As property development is the key driver of our business operations moving forward, the group will remain steadfast in launching its projects according to prevailing market sentiments,” GuocoLand said. (The Edge)
Sarawak Consolidated calls off deal to buy Carlton Gardens
Sarawak Consolidated Industries Bhd has terminated its share sale agreement (SSA) to acquire the owner and operator of an industrialised building system (IBS) factory Carlton Gardens Sdn Bhd for RM9.5 million. In return, it is claiming for yet-to-be-quantified losses and damages suffered due to what it alleged were the sellers’ breach of contract and/or misprepresentation. When Sarawak Consolidated proposed to acquire Carlton Gardens in 2016, it said the latter had secured work for the Beaufort 1Malaysia People’s Housing Programme (PR1MA) affordable housing projects, which would be developed over 20 years. (The Edge)
