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KUALA LUMPUR: Hong Kong-based property developer, IBN Corp Ltd, officially launched the RM1.5 billion gross development value (GDV) mixed-use project, the IBN Bukit Bintang, off Jalan Bukit Bintang today with a ground-breaking ceremony.
Director Datuk Seri Michael JW Yang said the project would be developed over three years at a cost of RM650 million.
“It will include the development of a combined hotel and residential tower in a single 68-storey building with a total built-up area of 730,062 sq ft on a 0.31ha plot of land in the heart of the city.
“The development order has been approved by DBKL. We are currently waiting for approval for the current building (Hotel Fortuna, which is no longer in operation) to be demolished,” he told reporters after the ground-breaking ceremony.
Yang said approval for the demolishment was expected within the next two to six months.
The property development project is a partnership between IBN Corp, a wholly owned subsidiary of Shenzhen ZRPZ Group, and land owner KKH Pavilion Development Sdn Bhd.
Yang said the development’s limited freehold residential units would be priced starting from RM2,000 per sq ft.
He said the targeted take-up would comprise 70% local buyers and the rest from the Middle East, China and India.
“The project will be slightly shorter than the Four Seasons Kuala Lumpur Hotel (343m). Upon completion, the building will among the five tallest buildings in Kuala Lumpur.
Yang said IBN Corp would be announcing another project in Kota Kinabalu in the third quarter of this year, but was tight-lipped about the details.
Currently, IBN Corp has projects across Southeast Asia with a GDV exceeding RM20 billion and growing with the completion of one of its core projects in Genting Highlands, IBN Highlands City.
PETALING JAYA: Selangor Properties Bhd (SPB) shareholders have approved its largest shareholder Kayin Holdings Sdn Bhd’s plan to take the company private at RM6.30 per share.
“Based on the poll results, the special resolution was voted for by 76.301% in number and 99.023% in value to the votes attached to the disinterested SPB shares that were cast either in person or by proxy at the EGM. Further, 0.374% of the votes attached to all the disinterested shares of the total voting shares of SPB voted against the special resolution. Therefore, the special resolution has been carried,” the property developer told the stock exchange after its EGM today.
Trading in SPB shares was suspended at 11.46am and will resume from 2.30pm. It was last traded at RM6.21, up 5 sen or 0.8% with 53,800 shares changing hands.
Kayin earlier revised its offer price for SPB twice to RM6.30 from RM5.70 initially. The privatisation will be undertaken through he proposed selective capital reduction and repayment (SCR) exercise
The entitled shareholders will receive a total capital repayment of RM687.7 million, representing a cash repayment of RM6.30 per share.
Kayin is the vehicle of the Wen family who holds a 68.25% stake in SPB.
PETALING JAYA: AME Elite Consortium Bhd is planning an initial public offering (IPO) on the Main Market of Bursa Malaysia Securities Bhd.
According to its draft prospectus, its IPO of up to 128.13 million IPO shares represents up to about 30% of the enlarged issued share capital of the company.
The exercise will comprise a public issue of 85.42 million new shares and an offer for sale of up to 42.71 million existing shares involving a retail offering of 17.08 million shares and institutional offering up to 111.05 million IPO shares.
AME is an industrial property developer and services provider with core expertise in the design-and-build of industrial parks as well as construction of customised large manufacturing plants, complemented by its offerings in engineering services and property investment and management services in Malaysia.
It expects to use the gross proceeds from the public issue for future industrial property development and investment projects including land acquisitions and joint ventures, working capital for its i-Park @ SAC development project and to complete the expansion of its precast concrete fabrication capacity.
AME disclosed that it is in preliminary discussions with certain land owners in and outside Johor on potential acquisition and development opportunities.
“However, we have not identified or committed to any acquisition and development targets.”
To maintain its cost competitiveness, it will continue to identify reasonably priced land as well as assess and monitor the process of tendering and contract negotiation, the group said.
For the financial year ended March 31, 2018, AME reported a net profit of RM78.22 million, 37% higher than the RM57.1 million it made a year ago, while revenue grew 14.2% to RM341.32 million from RM298.96 million.
Net profit margin rose to 22.92% from 19.1%.
PETALING JAYA: SP Setia Bhd has clarified that it is not liable to pay Goods and Services Tax (GST) after it was sued by Boustead Plantations Bhd over a RM37.2 million GST payment involving a land deal in Penang.
The group told the stock exchange today that its wholly owned subsidiary Setia Fontaines Sdn Bhd has been advised by its solicitors that the acquisition of five parcels of adjoining land in Penang should be exempted from the GST pursuant to Item 1(1), First Schedule of the Goods and Services Tax (Exempt Supply) Order 2014.
“Setia Fontaines disagrees with the position taken by Boustead and hence, strongly believes that GST is not payable for the land acquired. Setia Fontaines remains steadfast to defend its position at the proceedings in the High Court,”it said.
Boustead Plantations claimed that the RM37.2 million GST is chargeable on the sale of land to Setia Fontaines.
To recap, SP Setia acquired the five parcels of land measuring a total of 677.8ha in Seberang Perai Utara in Penang from Boustead Plantations for RM620.12 million cash, following a successful bid by the property developer under a tender exercise.
SP Setia gained 5.66% to close at RM2.24 with 1.9 million shares changing hands, while Boustead Plantations was up 2.22% to 92 sen with 383,500 shares done.
KUALA LUMPUR: Sentiment in Malaysia’s property market is expected to improve in 2019, especially the residential property market, as policies announced under Budget 2019 are expected to strengthen demand, particularly among first-time homebuyers, said property advisor Knight Frank Malaysia. “The property market in Malaysia experienced a pick-up in activities during the second half of 2018, […]
PETALING JAYA: The property market, which experienced a pick-up in activities in 2H2018, is expected to improve this year, particularly the residential segment, said Knight Frank Malaysia.
“Investors’ confidence showed some positive signs as the newly elected Pakatan Harapan government starts to provide more clarity and certainty on its fiscal policies following the tabling of Budget 2019,” it said in a statement today.
In its Real Estate Highlights 2nd Half 2018 report, Knight Frank said that prices are generally holding firm in Kuala Lumpur’s prime housing market.
Although the widening gap between supply and demand coupled with rising financing cost will continue to impinge on price growth, property developers are generally more optimistic thus more launches are expected this year and beyond.
The slight upward revision in the rates of real property gains tax and stamp duty as announced under Budget 2019 are unlikely to have significant impact on the high-end condominium sector although the acquisition and disposal costs in property transactions may be higher.
In contrast, the exemptions and initiatives, in particular the waiver of stamp duty on the instrument of transfer and loan agreement for residential homes valued up to RM300,000 for a two-year period and the six-month waiver of stamp duty charges for properties priced from RM300,001 to RM1 million, are expected to kick-start the housing market moving into 2019 and beyond.
Knight Frank said the introduction of alternative financing through property crowdfunding will further assist first-time home buyers but emphasised the importance of governing the platform with stringent guidelines to avoid potential sub-prime mortgage crisis.
“In 2019, we expect to see more motivated sellers and discerning buyers to be present in the residential market. Various policies announced in Budget 2019, which are designed to aid first-time home buyers, are also expected to kick-start the housing market moving into 2019 and beyond.
“Malaysia’s residential properties will continue to be attractive in the eyes of foreign buyers as a result of our liberal policies, reasonable valuations and coupled with no extra stamp duties,” said Knight Frank Malaysia associate director of residential sales and leasing Kelvin Yip.
In 2H2018, four projects were completed namely Ruma Residences, Pavilion Suites, Premium Residences @ KL Gateway and Dorsett Residences Sri Hartamas, bringing the cumulative supply of high-end residences to 53,033 units.
By 1H2019, the scheduled completions of Inwood Residences @ Pantai Sentral Park, One Kiara – Block A, Residensi Sefina and Opus KL will contribute an additional 931 units to the existing stock.
In 2H2018, there were more previews and launches compared with 1H2018 with notable launches including Agile Bukit Bintang (Block B), Yoo8 of 8 Conlay (Block B), Windsor Suites @ Pavilion Damansara Heights, Trinity Pentamont and Residensi Astrea.
In the secondary market, prices were generally flat in the selected localities under review while the rental market saw a marginal dip in selected schemes reviewed in the Damansara Heights area.
In the primary market, available units of previously launched projects are selling from about RM1,500 per sq ft to RM1,950 per sq ft for units sized below 1,000 sq ft while more recent launches have higher composition of smaller sized units, which resulted in lower quantum pricing but higher price on per sq ft basis.