MNC Wireless to take up units in Malacca’s Marina Point for luxury homestays

PETALING JAYA: M N C Wireless Bhd plans to turn 120 Dual-Key units under Sanichi Technology Bhd's Marina Point service residence and retail mall development in Klebang, Malacca, into luxury homestays.

Dual-key units have two separate entrances leading to two self-contained living spaces.

Sanichi in a statement released today said its wholly-owned subsidiary, Sanichi Property Sdn Bhd (SPSB) and MNC inked a Memorandum of Understanding to provide, online leasing or short-term rental service at SPSB’s development project.

MNC will lease, upgrade, market and operate the units from SPSB, which has a special leaseback agreement with its individual unit purchasers at the point of sales for the next 10 years after the completion of the project.

MNC and SPSB are looking to commence the partnership by second quarter of 2020. Currently, the retail section of Marina Point is 55% completed and residential is 25% completed, and on track to hand over to its unit owners by first quarter of 2020.

Marina Point, a mixed development with a gross development value of RM230m, is less than five minutes drive away from historical Bandar Hilir downtown Malacca, overlooking Straits of Melaka, featuring a sky lounge, 1st mini water themed park, 52m long swimming pool, gymnasium, mini theater and a mall.

MNC’s Executive Director, Christopher Tan Chor How said, “The demand and supply gap of hospitality in Melaka holds golden opportunity and MNC is certain that this alliance will contribute positively to its bottom line, given that online leasing or short-term rental service is the newest in-trend services that is sought after and the potential is huge.”

“This is a rare opportunity and it not easy to find so many units of residential units in a building in Melaka to operate homestays business. Unit owners at Marina Point and MNC would definitely benefit from the operating cost saving from this natural economics of scale at one location.”

Since 2009, Melaka has welcomed 8.91 million tourists and the number has increased to 16.28 million in 2016, which resulted in massive demand for rooms in the state. Statistics in 2016 proved tourists per day could reach as high as 44,500 persons, whereas room supplies are only at 19,000 rooms per day.

Yong Tai secures funding from China for Impression City Malacca development

KUALA LUMPUR: Yong Tai Bhd has secured further funding for the RM7 billion gross development value Impression City project in Malacca which has been delayed since 2013, due to financing issues.

In a strategic alliance signing ceremony today, the group entered into a heads of agreement with Hong Kong listed Kirin Group Holdings Ltd for a proposed investment of not less than RM400 million.

Additionally, it has secured a RM100 million facility from the Bank of China to partly finance the Encore Melaka theatre, which is also Malaysia's first standard indoor theatre.

The funding was supposed to come through in 2013 but was delayed due to the fallout between Malaysia and China following the disappearance of flight MH370.

This is the latest round of funding to come through in addition to a RM500 million secured previously.

On top of that, the group has also signed ticket sales agreements with six travel agents for the sale of one million tickets for the Impression Series-Encore Melaka.

Ticket sales for the series which is targeted to be launched in the second quarter this year, is expected to bring in about RM120-140million.

BTM shares up 2.04% on plant update

PETALING JAYA: BTM Resources Bhd's share price rose 2.04% this morning, after announcing that its RM435 million waste incineration power plant project in Malacca needs approval from the federal government.

At 11.22am, the stock stood at 25 sen with 80,000 shares changing hands, giving it a market capitalisation of RM31.5 million.

Yesterday, the group said it will be submitting its application and proposal to the National Solid Waste Management Department after the Malacca Economic Planning Unit said the project comes under the purview of the federal government.

In November 2017, the company had submitted its application to the relevant Malacca state authority.

BTM plant needs federal govt approval

PETALING JAYA: BTM Resources Bhd’s subsidiary BTM Western Power Green Energy Sdn Bhd will be submitting its application and proposal for its planned RM435 million waste incineration power plant to the National Solid Waste Management Department after the Malacca Economic Planning Unit said the project comes under the purview of the federal government. In November 2017, the company had submitted its approval to the relevant Malacca state authority.

The group’s board of directors said that it had received a letter from Unit Perancang Ekonomi Negeri Melaka informing that matters related to solid waste management and public cleansing are to be brought to the federal government.

In line with that, BTM said it will be submitting the application to the federal government agency for the plant. In November 2017, BTM entered into a heads of agreement with China’s SEPCO Electric Power Construction Corporation for the award of a Engineering, Procurement, Construction and Commissioning with Finance contract for the plant.

RAM assigns ‘AA3’ rating to Edra Energy’s sukuk

PETALING JAYA: RAM Ratings has assigned an “AA3/stable” rating to Edra Energy Sdn Bhd’s proposed sukuk wakalah of up to RM5.28 billion in nominal value (2017/2037) to fund the largest gas plant in Malaysia.

In a statement today, the rating agency said it reflects the company’s strong project economics, underscored by stable cash flow generation, resulting in a minimum finance service coverage ratio (with cash balances, post-distribution, calculated on payment dates) of 1.5 times under RAM’s sensitised case upon completion of the plant.

“Given the technology used in the turbine is untested and no other plant of this scale is currently in commercial operation globally, the company is exposed to technology risk,” RAM co-head of infrastructure and utilities ratings Chong Van Nee said.

“As the plant is at the construction stage and equity will be progressively injected into the project throughout the construction period, this also exposes the project to construction-related risks and uncertainty of funding,” she added.

Edra Energy, an independent power producer, has signed a 21-year power purchase agreement (PPA) with Tenaga Nasional Bhd (TNB). It will design, construct, own, operate and maintain the largest gas power plant in Malaysia, with a capacity of 2,242 MW combined-cycle, gas-turbine power plant in Alor Gajah, Malacca.

Proceeds from the proposed sukuk amounting to RM5.09 billion will be utilised mainly to fund the construction of the plant.

RAM said the company is entitled to earn full available capacity payments regardless of the quantum of electricity generated, as long as it meets performance requirements under the PPA.

It said Edra Energy can also fully pass through fuel costs to TNB via energy payments received from selling electricity, provided that the plant operates within heat rates stipulated in the PPA.

EIA report for high-speed rail open for public viewing

KUALA LUMPUR: The Environmental Impact Assessment (EIA) report for the Kuala Lumpur–Singapore High Speed Rail (HSR) is open for public viewing and feedback from today until Jan 25, 2018, according to MyHSR Corp Sdn Bhd.

It said in a statement today that the report will be displayed for public viewing in the headquarters of the Land Public Transport Commission (SPAD) and the Department of Environment (DOE) headquarters in Putrajaya.

It will also be made available at state DOE offices in Kuala Lumpur, Selangor, Negeri Sembilan, Malacca and Johor as well as at other local authorities’ offices along the HSR alignment.

“We welcome the public to provide feedback on the findings of the EIA report. The report will then be updated to incorporate feedback gathered from the viewing and will be presented and considered for approval by the DOE,” said MyHSR Corp CEO Datuk Mohd Nur Ismal Mohamed Kamal.

“We have outlined the necessary measures to address and minimise the potential impacts throughout all phases of the project, which covers pre-construction, during construction and operations,” he added.

The EIA report assesses the environmental impact of the new railway project in terms air quality, noise and vibration, waste, water quality, coastal hydraulics, terrestrial and marine ecology, hydrology, geology, traffic, risk hazard assessment, public health and safety, economic evaluation and visual.

KLCI sheds 0.23%, stays above 1,750 level

KUALA LUMPUR (Dec 26): The FBM KLCI shed 0.23% at the midday break today, as losers overtook buyers after the local market resumed trade following…

Morning Briefing, Tuesday

US Market : U.S. stocks closed at all-time highs on Monday as investors eagerly awaited a vote on a bill that would cut corporate taxes. A slew of corporate deals also helped lift sentiment. Europe Market : European stocks closed sharply higher Monday, amid heightened expectations that U.S. lawmakers could pass a long-awaited tax bill. Precious Metal Gold : Gold edged higher on Monday as uncertainty over U.S. tax legislation weighed on the dollar, while an analyst said bullion might face renewed headwinds early next year. Platinum rose 2 percentRead More

Stocks In Focus (19-12-2017)

KUALA LUMPUR (Dec 18): Based on corporate announcements and news flow today, companies that may be in focus tomorrow (Dec 19) may include: TMC Life…

OCR expects higher 2018 earnings

PETALING JAYA: O&C Resources Bhd (OCR), which has turned around in the financial year ended July 31, 2017 (FY17), expects higher full-year earnings for FY18 driven by its strong order book and new project launches going forward.

Speaking to reporters at a press conference after the group’s AGM today, its managing director Billy Ong Kah Hoe said the group’s construction business has an order book of RM670 million, which includes in-house projects and external building works.

“In FY17, the major revenue contribution came from our construction business and we expect this to be maintained in FY18,” Ong said.

For the first quarter ended Oct 31, 2017, OCR saw its net profit more than triple to RM1.06 million from RM288,000 in the same period last year, helped by an increase in profit from the development and construction segments.

Going forward, Ong said the major projects that will contribute to the group’s earnings include the 1Malaysia People’s Housing (PR1MA) project in Malacca and Bukit Jalil, 1Malaysia Housing Projects for Civil Servants (PPA1M) project in Putrajaya and Tiara Bangi Homes project.

“These projects will keep us busy for the next three to four years,” he added.

Furthermore, he said the group is also expecting earnings recognition from the property development division, mainly derived from the newly launched luxury service residence project called [email protected], with a gross development value (GDV) of RM240 million.

To date, Ong said the project has achieved a take-up rate of 80%.

He added the group’s upcoming projects include the RM166 million mixed development project in Pahang, known as PRIYA scheme, RM330 million mixed development in Kuantan and RM134 million project in Malacca.

“Additionally, with a net gearing of 0.11 times, the company is well positioned to capitalise on any opportunities that arise,” he added, noting the group is continuously looking to acquire new land bank, particularly in the Klang Valley area.

OCR owns 104 acres of land bank, located across Klang Valley, Kuantan and Malacca, with an estimated GDV of RM870 million.

At its AGM earlier, the group obtained shareholders’ approvals to change its name to OCR Group Bhd as part of its rebranding strategy. – by Wan Ilaika Mohd Zakaria