GE 14, potential interest rate hike key deterrents to property demand
Uncertainties in the political landscape and a potential interest rate hike of 25 basis points will be the key deterrents to property demand in Malaysia. According to RHB Research Institute, developers and consumers will be taking a “wait and see” approach whereby developers will hold back their launches and buyers are likely to delay their purchases. The potential rate hike may hit consumer sentiment, as interest costs on mortgages are likely to be more expensive. (The Edge Markets)
Ireka, Japan’s Hankyu Hanshin to develop RM400mil Nilai property project
Ireka Corp Bhd is partnering with Japan’s Hankyu Hanshin Properties Corp to develop a property development project called Rimbun Kasia in Nilai, Negeri Sembilan with a GDV of over RM400mil. Hankyu will take a 45% stake in its wholly owned subsidiary Meadowfield Sdn Bhd, while Ireka will hold the remaining 55%. The Rimbun Kasia project covers five parcels of residential project and one parcel of commercial project, over a 30.56-acre piece of land in Nilai. The first phase, Dwi@Rimbun Kasia, will consist of residential units. (The Sun Daily)
DFTZ expected to attract RM800mil investments
The Digital Free Trade Zone (DFTZ) is expected to receive RM800 million investments on infrastructure development, facilities, systems and equipment over the next three years. The investments would come from MAHB with JV companies, as well as direct investments from China. The DFTZ pioneer project is slated for completion by 2020, and expected to generate RM1.6 billion to GDP and create 6,000 jobs over the next three to four years. (NST Online)
Serba Dinamik kick-starts RM1bil Pengerang project
Engineering services provider Serba Dinamik Holdings Bhd has started construction of its Pengerang Eco Industrial Park (PEIP) project with Perisind Samudra Sdn Bhd at an estimated cost of RM1 billion. The eco industrial park project is part of Serba Dinamik’s total development of 62 acres of land comprising the PEIP and Pengerang International Commercial Centre PICC. PEIP involves the development of Malaysia’s first maintenance, repair and overhaul (MRO) and inspection, repair and maintenance (IRM) Global Centre of Excellence, a Plant Turnaround Village, and a technical and vocational education and training (TVET) City. (The Sun Daily)
Protasco eyes RM500mil order book this year
Prostaco Bhd is looking to replenish at least another RM500 million to its construction orderbook this year, mainly driven by higher government spending on affordable housing and mega infrastructure such as the High Speed Rail (HSR) and Mass Rapid Transit 3 (MRT3). Its orderbook currently stood at more than RM1 billion and will be delivered within the next two years. The company may be active in property developments again as early as this year. Its planned launches include “D’Perdana Telipot” in Kota Bahru, Kelantan with GDV of RM166mil, and shoplots in Pasir Gudang, Johor with GDV of RM120mil. The company envisages the maintenance segment to continue to be the main revenue driver of its group, mainly supported by the federal road maintenance concession. (NST Online)
See Hoy Chan looking at possible REIT listing
Property developer See Hoy Chan Sdn Bhd may be contemplating a listing of a real estate investment trust (REIT) on Bursa. A recent job vacancy put up by the company sought a senior REIT manager “to spearhead “the corporate exercise in listing SHC properties into a REIT on Bursa Malaysia”, among other things. Another requirement was that the candidate should be “experienced in pre and post-exercise of listing commercial properties into (a) REIT.” However, See Hoy Chan would not confirm any plans to establish and list a REIT. See Hoy Chan is widely known for developing Damansara Uptown in Petaling Jaya. (The Edge Markets)
