I&P plans luxury residential towers

I&P Group Sdn Bhd is hoping that its strategy of building luxury residential towers will lead to better results for the company.

Its group managing director Datuk Jamaludin Osman said its first project, which is worth RM800 million, will be launched in Bandar Kinrara, Puchong, Selangor, this year.

I&P, a wholly-owned unit of Permodalan Nasional Bhd, has 13 ongoing township projects and around 2,000ha landbank in the Klang Valley and Johor Baru.

These include Bandar Baru Sri Petaling, TemasyaGlenmarie, Bandar Kinrara, Alam Impian and Alam Damai in the Klang Valley, and Taman Industri Jaya, Taman Rinting and Taman Perling in Johor.

The residential component in these townships have always focused on landed properties and affordable apartments.

For the new project in Bandar Kinrara, Jamaludin said it will comprise five serviced apartment blocks totalling 1,200 units. 

Speaking to Business Times in an interview recently, he said the company will be launching the first block, featuring 236 serviced apartments, within the next two months.

Each unit ranges from 642 square feett to 1,600 sq ft and will be priced at about RM650 per sq ft.

"This will be our first time embarking on high-rise luxury residential property projects. We are doing this to enhance the land value. We need better returns for a company that is growing," he said.

Jamaludin said besides Bandar Kinrara, the company will also be launching luxury serviced apartments in Bandar Baru Sri Petaling and Alam Damai. 

I&P was formed in 2009 after the rationalisation exercise of three companies, namely Island & Peninsular Sdn Bhd, Petaling Garden Sdn Bhd and Pelangi Sdn Bhd.

For its fiscal year 2009, the company posted earnings of RM142.51 million on the back of RM1.07 billion revenue, translating into a profit margin of 13.28 per cent.

Last year, its revenue was around RM1.1 billion.

The company is expected to maintain that performance in the current year, Jamaludin said.

Source : Businss Times 30 April, 2013, By Sharen Kaur

Sunway REIT results in line with expectations

PETALING JAYA: Sunway Real Estate Investment Trust’s (REIT) recent financial results were largely in line with analysts’ expectations. They maintained their calls on the company.

In its report, Hong Leong Research said Sunway REIT’s third quarter 2013 normalised net profit rose 16.1% year-on-year to RM55.2mil, making up 75.4% and 79.4%, respectively, of its and consensus estimates.

In a filing with Bursa, the REIT manager said the distribution per unit for financial year ending June 30, 2013 was expected to be higher than financial year 2012, supported by growth in the retail sub-sector and interest savings from capital management initiatives.

Hong Leong, which is maintaining its “hold” call on the firm, said Sunway REIT was currently trading at 5.1% yield, which represented the lower boundary distribution yield in its view while the target price was maintained at RM1.49.

In its note to clients, HwangDBS Vickers Research, while maintaining its “buy” call on the company, said it had earlier assumed that Monash and Sunway University campuses would be injected in financial year 2014, but ongoing construction works on the assets and potential for the universities to pay out rentals (in line with rental growth) may delay the injection timeline.

As such, it is pushing back its injection assumption to financial year 2015.

In light of the softening office market beginning to impact Sunway REIT’s office assets, the research house has also assumed lower near-term rental reversions and occupancies (notably on Sunway Tower and Sunway Putra Tower).

The management has also forecast higher capital expenditure in fiscal 2014 of around RM300mil, which would be funded by debt, implying greater finance costs.

Sunway REIT closed at RM1.58 yesterday, down two sen.

Source : Star, May 3, 2013

OSK Property to build SOVOs and shops in Bandar Shah Alam

PETALING JAYA: OSK Property Holdings Bhd is buying two leasehold commercial land in Shah Alam from Kuala Dimensi Sdn Bhd for RM15.19mil.

OSK Property is acquiring via, unit Ribuan Ekuiti Sdn Bhd, the two land measuring 6,535 and 5,225 sq m, respectively, in Bandar Shah Alam.

Ribuan Ekuiti, which is principally involved in property development and property management, will pay RM151,900 upfront. The balance RM15.038mil will be paid within three months after the sale and purchase agreement becomes unconditional.

The acquisition will be 20% funded with internal funds and 80% with external borrowings. It is expected to be completed by the third quarter this year.

OSK Property plans to build a commercial development comprising 420 semi-furnished, small-office, flexible-office units, which include a 25,339 sq ft or two floors for retail shops. The development has an estimated gross development value of RM190mil.

OSK Property said it targeted to launch the development by the fourth quarter this year.

Source : Star May 3, 2013