Sale of Sky Express Hotel

The conditional period for the sale of Sky Express Hotel has been extended for a further one month for the purchaser to fulfil the last remaining condition precedent, which is to obtain written approval or confirmation from the Economic Planning Unit for the acquisition. The disposal is expected to be completed in the second quarter of 2016.

(The edge property, 12/04/2016)

Tropicana’s sale of Dijaya Plaza goes unconditional

Tropicana is selling the Dijaya Plaza office building to Kenanga Investment Bank Bhd for RM140 million cash. The disposal consists of 3,674 sq meter of freehold land together with an en-bloc 19-storey office tower and 322 parking bays over two levels of basement. The conditions precedent for the proposed disposal has been satisfied and the disposal is expected to be completed in second quarter this year.

(The edge property, 12/04/2016)

KWAP outlines investment moves

Retirement Fund Inc (KWAP) is finalising the acquisition of an office tower in Kuala Lumpur’s Golden Triangle for RM580 million. The office tower will be the second building that KWAP owns in the Klang Valley. As end of March, KWAP had RM122 billion in assets.

(New straits times, 13/04/2016)

PKNS seals 60-year land lease agreement with Lam Soon

The Selangor State Development Corporation (PKNS) has signed a 60-year land lease agreement with Lam Soon Edible Oil (M) Sdn Bhd to develop offices, warehouses and research and development centres over 9.68 ha land at Selangor Cyber Valley, Sepang. It will be the 11th township with GDV of RM16.9 billion to be developed by PKNS in Sepang. Lam Soon will pay about RM76.9 million to lease the land from PKNS.

(The Star, 13/04/2016)

Melati Ehsan buying Selayang land for RM77.7 million

Bayu Melati Sdn Bhd, wholly-owned subsidiary of Melati Ehsan Holdings Bhd (MEHB) is acquiring three parcels of leasehold land measuring a total of 37,078 sq meter in Bandar Selayang for RM77.74 million cash from Aturan Utama Sdn Bhd. The land is proposed to be developed into a mixed project and the purchase price could be reduced to RM70 million if it required to build affordable homes under the “Rumah SelangorKu” scheme.

(The Sun, 18/04/2016)

Majestic Development Sdn Bhd and Univas Sdn Bhd agree to extend completion period of Semenyih land buy

In July 2014, Eco Majestic Development had entered into a share sale agreement to acquire 199.37 hectares in Beranang, Semenyih for RM225.33 million from Univas (Far East) Sdn Bhd. Both parties have agreed to extend the completion period to three month from a month previously upon the expiry of the completion period.

(iProperty, 21/04/2016)

Compugates unit to dispose of Dengkil land

Compugates Holdings Bhd’s 70%-owned subsidiary of Compugates Development and Mining Sdn Bhd plans to dispose of a 25.09 ha of agriculture land in Dengkil, Selangor to Bangsawan Bumimaju Sdn Bhd for RM62.12 million.

(The edge property, 22/04/2016)

EPF to buy 80% of MRCB’s ‘exchange’ land in privatisation of Bukit Jalil sports complex

The Employees Provident Fund (EPF) has offered to acquire 80% interest in ‘exchange’ land that Malaysian Resources Corp Bhd (MRCB) will be receiving under the National Sports Complex privatisation project for RM421.5 million. The remaining 20% will be hold by MRCB. The three parcels of leasehold ‘exchange land’ totalling 37.4 ha, make up the RM1.632 billion consideration for the proposed privatisation job undertaken by MRCB to refurbish and upgrade facilities at the National Sports Complex.

(The edge property, 25/04/2016)

Mall by Mitsui Fudosan in Bukit Bintang City Centre by Ecoworld

Mitsui Fudosan will develop a nine-story, 45 billion yen ($397 million) mall in Malaysia with local partners as part of an effort to solidify its overseas earnings base for the future.

Mall by Mitsui Fudosan in Bukit Bintang City Centre by Ecoworld

Costlier than the company's outlet malls in Taiwan and the Chinese city of Ningbo, this will likely mark the biggest project for a commercial facility abroad by a Japanese real estate developer. The plan is to open a LaLaport mall like those of Japan in Kuala Lumpur in 2021.

Working with Eco World Development Group and two other local partners, Mitsui Fudosan will set up a special-purpose company as early as this year.

The mall will sit on the 78,500-sq.-meter premises of the Bukit Bintang City Centre, a project co-led by Eco World that includes residential and office space.

The mall will boast five above-ground floors and four underground floors. Construction will begin in 2017. Retail space will likely total 80,000 sq. meters -- close to the 102,000 sq. meters of a major LaLaport mall in Chiba Prefecture. The plan is to draw about 300 businesses to the new facility, among them restaurants, household goods stores and fashion retailers. Tenants focusing on middle-income consumers, including Japanese businesses gaining popularity in Malaysia, will be solicited. Annual sales are targeted at 42 billion yen.

Mitsui Fudosan intends to apply Japa
nese know-how to running the mall through such steps as training store managers and introducing a system to track daily sales of each store. In this way, it seeks to distinguish the facility from the competition.

Malaysia has enjoyed relatively high real gross domestic product growth among members of the Association of Southeast Asian Nations. With the ranks of the middle class seen continuing to expand, the Japanese company expects demand to stay strong.

Mitsui Fudosan opened an outlet mall near an international airport in Malaysia last year. Tenants catering to middle-income consumers are faring well, and sales have beaten initial expectations. An expansion is now planned, driven by popular demand.

Mitsui Fudosan's wide-ranging business domains include commercial facilities, housing, office buildings and hotels. In Japan, the shrinking population limits prospects for demand growth in housing and office buildings. The company is thus strengthening commercial establishments, such as outlet malls, in Asia. And in the London area, it is working on mixed-use facilities.

The company plans to invest 550 billion yen overseas from fiscal 2015 to fiscal 2017 and to spend about as much on office building and other projects in Japan. Mitsui Fudosan hopes to generate about 12% of its overall operating profit abroad in fiscal 2017, up from just 6.4% in fiscal 2014.


(Nikkei Asian Review, March 26, 2016)