joint venture


Analysts positive on SimeProp’s disposal of Battersea Power Station commercial spaces

KUCHING: Sime Darby Property Bhd’s (SimeProp) move to sell Battersea Power Station phase 2 (BPS2) commercial spaces (The Power Station building) to Pemodalan Nasional Bhd (PNB) and Employees Provident Fund Board (EPF) garnered positive views from analysts. In a filing to Bursa Malaysia, SimeProp announced that Battersea Phase 2 HoldCo, an indirect 40 per cent […]

Strong local interest in turnkey tender for MRT Circle Line project

KUALA LUMPUR, Jan 19 — Mass Rapid Transit Corporation Sdn Bhd (MRT Corp) has announced that four consortiums have submitted turnkey tenders with financing for the MRT Circle Line as the tender submission closed yesterday. Three out of the four…

LG Electronics partners with Aspen Group to set up first academy, flagship store

GEORGE TOWN, Jan 19 — LG Electronics Inc yesterday entered into a partnership with Aspen (Group) Holdings Limited to provide technological solutions, products and services for all of the developer’s real estate developments. The signing of…

PNB, EPF keen to take over phase two of Battersea Power Station project

SHAH ALAM: Permodalan Nasional Bhd (PNB) and the Employees Provident Fund, (EPF) long-term investors in the Battersea Power Station project in London, have shown interest in taking over the commercial assets being developed by Battersea Phase 2 Holding Co Ltd for £1.61 billion (RM8.8 billion).

Today, Sime Darby Property Bhd and SP Setia Bhd, both 40% interest holders in Battersea Phase 2, announced that Battersea Phase 2 Holding had entered into a heads of agreements with PNB and EPF to explore the terms of a potential sale on completion of the commercial assets currently being developed within Phase 2 of Battersea Power Station project, to a joint venture company to be formed between PNB and EPF.

Battersea Phase 2 Holding Co is a wholly owned subsidiary of Battersea Project Holding Co Ltd.

PNB and EPF expressed their interest to explore the transaction following strong progress made to date in Phase 2 with over 90% of residential units having been presold and the letting of the entire office space in the Power Station Building (about 470,000 sq ft) to Apple.

Sime Darby Property said in its statement the proposed transaction would provide increased certainty of investment return to Sime Darby Property and SP Setia as development partners earlier than would otherwise be the case, and enable both parties to focus on securing the development profit and investment returns from the remainder development in Phases 3 to 7 of the Battersea Power Station, which is estimated to be completed in 2028.

“The proposed transaction, once completed, would augur well with our business plans as it will enhance our investment returns and allow SP Setia to capitalise on arising opportunities as a property developer while continuing to play a significant role in the overall development of the project,” SP Setia said in a statement.

It added that the proposed transaction demonstrates the strong direct commitment by the ultimate institutional shareholders in the project.

The shareholdings in Battersea Project Holding will remain unchanged between Sime Darby Property, SP Setia and EPF. SP Setia remains committed to and is positive on the long-term prospects of the Battersea Power Station project.

Phase 1 (known as Circus West Village), which consists of 12 residential blocks and 100,000 sq ft of high-quality restaurants, shops, offices and leisure accommodation was handed over to the purchasers and tenants over the course of last year.

The Battersea Power Station project covers 42 acres and includes 3.5 million sq ft of mixed commercial space, together with 4,364 new homes.

Dow posts first close above 26,000 amid Wall Street records

NEW YORK, Jan 18 — Wall Street roared upwards yesterday, with investor enthusiasm sending all three major stock indices to record finishes, and the Dow to its first close above 26,000 points. The blue-chip Dow gained 1.3 per cent to close at…

Wall Street soars yet again; bitcoin crashes below US$10,000

NEW YORK, Jan 18 — Wall Street shot past a fresh set of a milestones yesterday as irrepressible investor appetite returned US stocks to their steady stream of record finishes. Across the Atlantic, however, European equities churned lower as…

Positive on TM, TNB’s joint venture to expedite Nationwide Fiberisation Plan

KUCHING: Analysts are positive on Telekom Malaysia Bhd (TM) and Tenaga Nasional Bhd (TNB) signing a memorandum of understanding (MoU) to jointly develop an implementation plan to deliver and expedite the government’s Nationwide Fiberisation Plan (NFP). In a Bursa filing on Tuesday (January 16), TM said the collaboration with TNB is set to capitalise on […]

Sunsuria proposes diversification into construction

PETALING JAYA: Sunsuria Bhd, which is involved in property development and investment, is proposing to diversify its existing principal activities of property development to include construction and related businesses.

“The board anticipates the construction and related businesses may in the future contribute 25% or more of the net profits of Sunsuria group and/or result in a diversion of more than 25% of the net assets of Sunsuria group. The board proposes to seek the approval of shareholders of Sunsuria for the exercise, at an AGM to be convened,” Sunsuria said.

It intends to secure construction projects to provide for greater business expansion and sound financial growth for the group.

The exercise will be undertaken through its 51% indirect subsidiary Sunsuria Asas Sdn Bhd (SASB) and joint venture company Citic Sunsuria Sdn Bhd (CSSB), wherein Sunsuria will be able to leverage on the proven track record, engineering expertise, technical sophistication and resources of the strategic partners – Spanway Construction Sdn Bhd and Citicc International Investment Ltd (CITIC).

The investment in SASB and the joint venture with CITIC through CSSB by Sunsuria group serve as the entry point and is part of the group’s expansion efforts into the construction and related businesses.

After obtaining approval from the company’s shareholders for the exercise, Sunsuria group will strive to identify and assess new opportunities to secure more contracts.

“The board is positive on the outlook of the construction and related businesses, which is expected to enhance Sunsuria group’s financial performance and shareholders’ value. The diversification into the new businesses augurs well for the group. It is the intention of the group to expand and bolster the construction and related businesses including potential listing of the construction division of the group when appropriate,” it added.

Ewein throws support behind MD

PETALING JAYA: Ewein Bhd has thrown support behind its managing director Datuk Ewe Swee Kheng, who was remanded by the Malaysian Anti-Corruption Commission (MACC) to facilitate and assist in an investigation in relation to the Penang undersea tunnel project.

“We stand by our group managing director unequivocally in this situation and we endeavour to assist in the investigation as best we can to ensure a swift conclusion to this matter,” it said in a filing with the stock exchange.

Ewein noted that the investigation is based on a complaint lodged by a particular person recently.

“However, Ewein would like to clarify that it is an irrefutable fact that Ewein and its subsidiaries are not involved in any form in the Penang undersea tunnel project.”

Ewein highlighted that it has merely via subsidiary Ewein Land Sdn Bhd (EL) entered into a joint venture with Consortium Zenith Construction Sdn Bhd (CZ) in 2013 to develop a piece of land measuring 3.67 acres in Bandar Tanjong Pinang, Penang, which was valued at RM133 million.

“Ewein did not acquire the land from the Penang state government. The land is being developed jointly in a commercial transaction between EL and CZ via the joint venture vehicle Ewein Zenith Sdn Bhd (EZ), and was supported by a valuation report which was submitted to Bursa Malaysia Securities Berhad,” it said.

Ewein, via its subsidiary Ewein Zenith II Sdn Bhd (EZII) had also entered into another agreement to acquire a piece of land measuring 4.4 acres in Bandar Tanjong Pinang, Penang for RM162 million in 2015.

“Again, the land was to be acquired from CZ and not from the Penang state government. This was a commercial transaction between EZII and CZ and the details of the intended acquisition were announced to Bursa Malaysia Securities Berhad and is publicly available information.

“Thereafter, EZII decided to terminate this agreement as the size of the land which was ultimately alienated by the state to CZ was approximately 2 acres instead of the 4.4 acres which was agreed pursuant to the sales and purchase agreement.”

In addition, EZ had entered into a memorandum of agreement (MOA) with CZ to acquire the rights to purchase 50 acres of to-be-reclaimed land at Gurney Drive in 2016.

“The MOA sets the foundation for the company's property development programme for this strategic growth area for the next 10 years. This 50 acres land is part of a reclamation project undertaken by a company not connected to Ewein or any of its subsidiaries and is still under the sea as the reclamation work is in progress and on-going.”

Health-conscious Nestle sells US candy to Ferrero for US$2.8b

LONDON, Jan 17 — Swiss food group Nestle has agreed to sell its US confectionery business to Italy’s Ferrero for US$2.8 billion (RM11 billion), it said yesterday, marking CEO Mark Schneider’s first big sale and a small step on its path towards…