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MONTH: N0VEMBER 2012 ISSUE: 11/2012 Property News PA International Property Consultants is a registered real estate firm committed to providing a comprehensive range of property solutions to meet the needs of investors, occupiers and developers. The Research Division provides core real estate information to clients and internal departments in order to ensure accurate real estate decision-making. Our research team has completed market studies and research work for various ongoing development schemes within Klang Valley, providing comprehensive economic analysis, property PA INTERNATIONAL market information, forecasts and consulting advice based PROPERTY CONSULTANTS (KL) SDN BHD on reliable sources. Phone: 03-7958 5933 We constantly strive to present the most up-to-date Fax: 03-7957 5933 Website: http://www.pa.com.my market knowledge in order to ensure clients are well- Email: [email protected] armed with sufficient data to make the right property decisions. Issue 11: 1- 30 November 2012 GENERAL ECONOMIC & PROPERTY MARKET 1. Malaysia Property Award 2012 to be held tomorrow (The Sun, 09-November-2012) Event FIABCI’s Malaysia Property Award 2012 Date 10 November 2012 Venue One World Hotel, Petaling Jaya Descriptions . Some of the finest among the country’s developers will be lauded and celebrated in such categories as Property CEO, Sustainable Development, Master Plan and Residential. The event will be attended by the Yang DiPertuan Besar Negeri Sembilan. It is a black-tie affair that is in its 20th year. It has been two decades of distinction as the country’s premier property awards, something not surprising given the comprehensive GEN research and organisation put into the judgement as well as its stringent evaluation process. The winners at the event will go on to represent the country at the international level. E . Equivalent awards are held by FIABCI chapters all over the world each year, which culminate ECONOMICRAL & PROPERTY MARKET in the international Prix d’Excellence – the next one to be held in Taiwan in May. 2. WCT to focus on property development (The Edge Property, 12-November-2012) . WCT Bhd, a real estate developer and civil engineering construction company, intends to focus on its property development segment in the future, said its Deputy Managing Director Goh Chin Liong. He added, in the 5 years business development plan, WCT intend to increase the operating profits contribution of the property development segment from 21% (in 2011) to 30% (in 2016). As of 2011, the earnings base of the engineering & construction segment stands at 64%. The property development segment contributes 21% of the company’s operating profits, whereas the investment and management segment contributes 15%. Earlier, WCT had each of the proposed resolutions agreed by shareholders at the EGM. One of the resolutions was the bonus issue of 180.25 million new ordinary shares and 240.34 million free warrants. The proposed bonus issue, which announced earlier on the 6th September comprising 2 billion ordinary shares of RM0.50 each and 1 billion preference shares of RM0.10 each. WCT’s current authorized share capital is RM800 million, comprising 1.4 billion ordinary shares of RM0.50 each and 1 billion preference shares of RM0.10 each. 3. 5% GDP GROWTH ACHIEVABLE (The Sun, 22-November-2012) . Deputy Finance Minister Datuk Dr. Awang Adek Hussin said that the government’s gross domestic product (GDP) growth target of 5% this year is easily achievable, given the impressive 5.2% economic expansion in the 3Q 2012. He added that Malaysia’s economy only need to growth a minimum 4.1% in Q4 to achieve the 5% target. Asked whether the government will raise the full year growth target, Datuk Dr. Awang said there are no plans to do so at the moment. 4. UOA Q3 profit rises 51% (StarBiz, 23-November-2012) . UOA Development Bhd's third quarter (Q3) year-on-year net profit rose 51.1% to RM83.9 million from RM55.5 million on the back of revenue rising as well to RM282.3 million from RM157.06 million in their respective periods. Our philosophy is simple: A unique combination of People, Intellectual Property, Relationships, Services and Commitment 1 Issue 11: 1- 30 November 2012 . Its earnings per share rose to 6.78 sen from 4.64 sen while net assets per share rose to RM1.59 from RM1.51. The company said in stock exchange filing that its better financial performance was due to the higher sales and profit from its on-going projects. UOA also set record sales of RM1.24 billion for the 1st nine months of 2012, substantially surpassing the full year figure of RM848 million in 2011. Apart from the good take-up on The Vertical Office Suites in Bangsar South and Le Yuan Residence in Happy Garden, the recent sale of The Horizon Boutique Office Towers and on-going development projects have all contributed to the encouraging sales, the company said in a press release. UOA said its revenue and profit were mainly due to the progressive recognition from its on-going development projects namely Setapak Green, Camellia Serviced Suites, Le Yuan Residence, Vertical Office Suites and the recently completed Binjai 8. GEN . The disposal of the company's inventories at Bangsar South and Kepong Business Park during the quarter under review also contributed to the increase in revenue and profits. E . UOA said that moving forward, it expects sales from the projects such as Desa Green, Kencana Square and ECONOMICRAL & PROPERTY MARKET Scenaria @ North Kiara Hills (previously known as Kiara IV) which are targeted to launch in the fourth quarter (4Q) of 2012 to remain healthy. Total unbilled sales as at 30th September was at about RM797.7 million and the company will continue to source for strategic development lands that meet the criteria with focus within the Greater Kuala Lumpur for future development projects. Le Yuan Residence has enjoyed good take-up rates 5. Andaman Group on a RM3 billion development spree (New Straits Times, 23-November-2012) . Andaman Property Sdn Bhd will launch 7 new projects with an expected gross development value (GDV) of RM750 million within the next 6 months (Q4 2012 and Q1 2013). Andaman Head of Sales and Marketing Datuk Dr Vincent Tiew said the company's workload in the months ahead will be huge, thanks to the 7 new developments. The developments are: Andaman’s Q4 2012 & Q1 2013 projects November 2012 . Taipan City @ Ipoh – the best and most successful commercial project by Andaman in Perak. 40 units of 3-storey shops with individual lift. Total GDV is RM60 million. This freehold land launch also marks the RM300 million sales by Andaman within 24 months in Ipoh alone. Our philosophy is simple: A unique combination of People, Intellectual Property, Relationships, Services and Commitment 2 Issue 11: 1- 30 November 2012 . Taipan @ Pantai Remis commercial centre, Perak. 13.3 acres of freehold land. Hypermarket plus 118 units of 2, 3 and 4-storey shops. Total GDV is RM80 million. December 2012 . Taipan @ Slim River commercial centre, Perak. 12.7 acres of freehold land. Hypermarket plus 111 units of 2 and 2½ - storey shops. Total GDV is RM80 million. January 2013 . Diamond Residence @ Serdang – the best 8% Guaranteed Rental Return package by Andaman to be launched. Total GDV is RM120 million. Comprising 228 furnished condominium units. Westlake @ Sungai Siput – a 256-acre township development to be launched by Andaman. Total GDV is RM350 million spanning 5 to 8 years. Comprising about 1,000 units of landed residential plus some commercial. February 2013 . Scott Tower @ Larkin Condominium – the development is the 1st project to be launched by the developer in Johor Baru. Total GDV is RM120 million for 352 units of condominium. GEN March 2013 . The largest and 1st SoVo project by Andaman – located in Bangi, Selangor with total GDV of RM110 million. Consisting E of 500 units. Commencement of construction of Bangi’s new 3-in1 shopping mall, hotel and SoVo. ECONOMICRAL & PROPERTY MARKET Andaman’s achievement during 1H 2012: . Launched Bangi @ Sentral CBD – comprising 86 units of 4-storey shops with total GDV of RM220 million. Launched Taipan 3 @ Ipoh – 67 units of 2-storey shops with total GDV of RM50 million. Launched Diamond Square @ Serdang – 30 units of 40-storey shops plus Lower Ground Floor with individual lift. Total GDV is RM120 million. 6. Setia International Centre offers one-stop property investment opportunity (The Edge Property, 28- November-2012) . The newly launched Setia International Centre (SIC) by SP Setia Bhd will offer investors the opportunity to view the group's local and international investment-grade products under one roof. The launch, which was held today, was officiated by Senator Datuk Raja Nong Chik, Minister of Federal Territories and Urban Wellbeing. President and CEO of SP Setia, Tan Sri Liew Kee Sin during the ceremony said in his speech that SIC represents yet another effort by the group to better serve its Malaysian customers by providing them with a local service centre for their overseas property investments with the group. Tan Sri Liew Kee Sin also said the centre which is located at the KL Eco City (KLEC) enables the developer to showcase its prowess in transforming itself to become a truly global property developer. Tan Sri Liew added that their projects in different parts of the world will vary in terms of design, material specifications, cultural and lifestyle preferences. He explained that the SIC allows SP Setia to share with Malaysian and international investors the different dynamics and project features that are unique to each and every development. At the SIC, people can compare and contrast multiple investment opportunities available to them based on their specific property needs or investment criteria.