EPF mulls sales of Axiata Tower in KL Sentral
The Employees Provident Fund (EPF) is studying the sale of the Axiata Tower in Kuala Lumpur Sentral, with the Grade A office tower likely to fetch as much as RM530 million, according to The Edge. The fund had already asked local and foreign property consultants to send out a request for proposal (RFP) for the building’s sale, but hinted that plans to dispose of the property are still in the early stages. The fund did not disclose its tenancy levels and terms, as well as how much it aimed to sell the building – formerly known as Quill 7 – for. Industry experts estimate that the building could fetch between RM1,100 to RM1,500 psf, or RM390.61 million to RM532.64 million. (The Edge)
HSR, MRT3 projects may be reviewed
The Kuala Lumpur-Singapore high-speed rail (HSR) and the Klang Valley mass rapid transit line 3 (MRT3) projects are likely to be deferred, as the new government looks to review mega-projects in the construction sector. Unlike infrastructure projects such as the East Coast Rail Link (ECRL), MRT 1 and MRT 2 as well as the Pan Borneo Highway, the HSR and MRT 3 projects have not been committed yet. “This means there’s no drawdown yet on funding, making it easier for them to be put on the back burner,” says an industry source. The two projects have a total value of RM105bil, with the HSR at RM60bil and MRT 3 to cost about RM45bil to be built. Their combined value is about half the value of construction projects that are currently committed and ongoing. Of the current ongoing projects, the ECRL is the second-largest infrastructure work. (The Star Online)
OCR plans mixed development of RM700mil GDV in Johor
OCR Group Bhd is planning a mixed development on 47.87 acres of land in Tebrau, Johor, with an estimated GDV of RM700 million. The development will encompass two phases, spanning over the next five years. Phase 1 will consist of 320 double-storey link houses with GDV of RM185mil, and Phase 2 will comprise a mixed development including service apartments and a shopping complex, with estimated GDV of RM515mil. OCR said the JV with Casa Bangsar Sdn Bhd is in line with its strategy to grow and diversify its business operations and to become profitable, with sustainable growth. (The Edge Markets)
Ho Hup to revive earnings with RM1.7bil launches planned for FY18
Construction and property development player Ho Hup Construction Bhd announced it will unveil property projects worth RM1.7 billion for financial year ending Dec 31, 2018 (FY18), after holding off new launches in the past few years. The launches will include the first phase of Laman Iskandaria in Kulai, Johor comprising shops and houses worth a total of RM400 million in GDV, as well as a two-tower serviced apartment in Bukit Jalil, Kuala Lumpur, worth RM500 million. Ho Hup also recently soft launched its Kota Kinabalu project — The Crown serviced apartment and its five-star Crown Plaza Hotel —worth RM800 million in GDV. Ho Hup still has a total land bank of 500 acres spread across its geographical nucleus in Bukit Jalil, Kulai, and Kuantan, with a potential GDV of RM4.5 billion sustainable over a period of 10 years. (The Edge Markets)
SP Setia to launch RM5.5bil projects by 2H, on track to achieve sales target
Property developer SP Setia Bhd plans to launch RM5.5 billion worth of projects both local and overseas by the second half of the year. By the second quarter of the year, the company will also be launching its Penang debut project, Setia Fontaines, as well as two stand-alone high rise residential units in Singapore and Australia. “Looking on the projects that we planned to launch this year, we are on track to meet our target sales of RM5 billion this year,” said its president and CEO Datuk CJ Khor. SP Setia had secured sales of RM1.11 billion in first quarter 2018, with local projects contributing RM635.6 million or 58% of the total sales. On landbank, Khor said SP Setia owns 9,586 acres of land with an estimated GDV of RM139 billion, which is going to keep the company busy in the next 10 to 15 years. (NST Online)
