PETALING JAYA: Y&G Corp Bhd has terminated the acquisition of two pieces of land measuring 23.39ha in Pontian, Johor for RM30.96 million.
The property developer said in a filing with the stock exchange that its wholly owned indirect subsidiary Melia Aktif Sdn Bhd (MASB) decided not to proceed further with the sale and purchase agreement (SPA) dated Aug 26, 2015 as the conditions precedent as stated in clause 5.1 had not been fully complied with.
“Hence, MASB via its solicitors had, on June 14, 2018, served the vendors’ solicitors a notice of its decision to exercise its right to discontinue with the purchase hereof and in terminating the said SPA summarily in pursuant to clause 5.2 of the SPA.”
Following the termination notice, Y&G said the vendors will refund to MASB the deposit of RM3.1 million free from interest within 14 days from the notice.
Y&G had planned to embark on a mixed development project comprising commercial and residential on the land.
KUALA LUMPUR, June 17 — Property developer, UEM Sunrise Bhd, plans to expand its rent-to-own (RTO) scheme, as it aims to ease the burden of first-time house buyers. Managing Director and Chief Executive Officer Anwar Syahrin Abdul Ajib described…
Sime Darby Property, SP Setia say Battersea Power Station project ‘purely an investment consideration’
PETALING JAYA: In rebutting Parti Keadilan Rakyat (PKR) de facto leader Datuk Seri Anwar Ibrahim's claim that their investment in London's Battersea Power Station project was a “political decision”, Sime Darby Property Bhd and SP Setia Bhd said in a joint statement today that it was purely an “investment consideration” and the project was acquired via a competitive tender process in September 2012 together with the Employees Provident Fund (EPF).
Anwar was quoted as saying that previous government's dubious investments, including the Battersea project, would be investigated over alleged use of public funds for project financing.
The two developers explained that the site acquisition and the subsequent costs of the Battersea development have been fully funded by a combination of equity from the shareholders together with development debt provided on commercial terms by a mixed group of nine Malaysian and international lenders.
“The £458 million development loan for Phase 1 has been fully repaid ahead of schedule. The initial capital invested into the project by the developers and the profit from the first phase is now being reinvested into developing the subsequent phases,” they added.
At present, Permodalan Nasional Bhd (PNB) and EPF together own directly and indirectly 67% equity in Battersea. PNB holds majority stakes in SP Setia and Sime Darby Property, which jointly own 80% of the equity in the development while EPF directly owns 20% of the development.
In January this year, the shareholders and management of Battersea were considering a divestment of the commercial assets and had initiated conversations with PNB and EPF with an estimated total consideration of £1.608 billion (RM8.6 billion), which is subject to further due diligence and on the basis that the development is completed and fully tenanted.
The exclusivity period for the transaction has been extended till June 29, 2018 and the parties are working together towards completing the proposed transaction.
“As previously assured by all parties, the decision to explore the potential reorganisation of ownership is purely an investment consideration initiated by the Battersea board and management team, together with EPF and PNB.
“From the perspective of Sime Darby Property and SP Setia, as property developers, the transaction will enable us to continue to reallocate capital to other areas of their development businesses,” the property developers stressed.
For PNB and EPF, it is a strategic opportunity to secure ownership of a “unique and iconic real estate asset” that would be able to deliver sustainable income streams into the future to meet their respective income needs. The transaction is expected to generate an attractive long-term yield for investors.
More than 99% of the residential units in the first phase, Circus West Village, have been sold and work on the power station building is in progress and is scheduled to open to the public in late 2020.
The power station will also house 120 shops and restaurants, event space and visitor attractions as well as 253 residential apartments, of which 90% have been sold.
Shares of Sime Darby Property and SP Setia rebounded today, rising 4 sen or 3.3% and 5 sen or 1.7% to settle at RM1.25 and RM3.00.
The outlet mall concept is growing popular in Malaysia thanks to the increasing demand for retailers to put off-season merchandise in a separate channel. An outlet store, factory outlet or factory shop is a brick and mortar or online store in which manufacturers sell their stock directly to the public, cutting out the middle-men. Traditionally, […]
SINGAPORE (June 8): Singapore-listed property developer GSH Corporation has sold off all the 100 units released at Coral Bay @Sutera, an ocean-fronting luxury condominium in Kota Kinabalu, Sabah. This comes less than a month after the units were released at its May 12 launch. The 460-unit Coral Bay sits on 528,000 sq ft of land, and is located within the gated community of Sutera Harbour Resort, in the east Malaysian state. The 99-year leasehold development comprises eight 12-storey residential towers, featuring two- to four-bedroom units from 1,500 to 3,500 sqRead More
HONG KONG, June 8 — Chinese property companies are increasingly tapping expensive mezzanine loans as they seek out higher returns, a trend that could undermine government efforts to cool the country’s booming real estate sector and rein in debt….
PETALING JAYA: Glomac Bhd returned to the black registering a net profit of RM23.1 million for the fourth quarter ended April 30, 2018 against a net loss of RM965,000 in the previous corresponding period, mainly due to the reversal of provision for foreseeable loss and expenses.
Revenue however, fell 42.8% to RM92.16 million from RM161.18 million.
Glomac’s full-year net profit sank 71.4% to RM30.92 million from RM108.18 million recorded a year before, with revenue skidding 30.7% to RM404.72 million from RM584.08 million.
In the new financial year FY19, the property developer said it plans to launch a more diverse range of products with a total estimated gross development value (GDV) of RM1.06 billion.
“Focus remains in the mid market and affordable segments, where the group expects its landed residential products in townships such as Saujana Perdana and Saujana Jaya in Kulai Johor to sustain steady sales.”
However, Glomac foresees the market environment to remain challenging, therefore it will continue to adopt a responsive approach in pacing its FY19 new launches.
On Bursa Malaysia today, Glomac closed down 1% at 47.5 sen on volume of 29,400 shares.