Friday, 27 November 2015

(The Edge) Casablanca Residence near Kota Kinabalu 70% taken up

KUALA LUMPUR: Casablanca Residence @ Off Jalan Kelombong in Kota Kinabalu, the latest residential development project by Sabah-based developer Kinsabina Sdn Bhd, has achieved a 70% take-up rate since its launch last Saturday.

The RM92 million project comprises 57 units of 2-storey terraced houses, 35 units of 3-storey terraced houses, and two units of semi-detached townhouses.

“Casablanca Residence is the first gated residential development with two and 3-storey terraced houses with clubhouse facilities in Sabah,” Kinsabina group CEO Datuk Francis Goh tells The Edge Property.

Prices start at RM788,800 for the 2-storey terraced houses, and go up to RM1.5 million for the semi-detached townhouses. According to Goh, the project had received bookings for 50% of its units prior to the launch last weekend.

“The response was good purely due to the reasonable pricing as well as the clubhouse facilities provided,” he says.

An intermediate 2-storey terraced house comes with a floor area of 2,237 sq ft and 3+1 bedrooms, while an intermediate unit of the 3-storey terraced house has 4+1 bedrooms and a fl oor area of 2,765 sq ft; the corner unit has a floor area of 2,804 sq ft. The 3-storey semi-detached townhouse has 4+1 bedrooms and a floor area of 3,974 sq ft.

Facilities at the development include basketball and badminton courts, swimming pool and children’s pool, playground, clubhouse, a drop-off area, an open lobby, multi-purpose hall, shop and café, sauna, pool and yoga decks, gazebo, library and gym.

There will be a service fee of RM250 and sinking fund of RM50 per month for each unit. Construction will start in January next year and is scheduled to be completed in 30 months.

The development is situated in the residential hub of Kelombong, about 8km from Kota Kinabalu city centre. It is 2km to Bukit Padang, more widely known as the popular Tun Fuad Stephens Park, and five minutes’ drive to Inanam.

Goh says a new bridge will be constructed to connect the Casablanca Residence to Taman BDC, creating an alternative access road to the development and also Bukit Padang. The development is near a light industrial area. Surrounding amenities include a Chinese school, shops, and a Giant hypermarket.

(The Edge) REV.O office suites 95% taken up after launch

KUALA LUMPUR: REV.O office suites in Bukit Jalil has achieved a 95% take-up rate since its launch on Oct 31.

The project is jointly developed by Ho Hup Construction Company Bhd subsidiary, Bukit Jalil Development Sdn Bhd, and MBM Land Bhd subsidiary, Gemilang Eramaju.

Gemilang Eramaju is a niche lifestyle developer and have developed projects such as The Signature at Desa Sri Hartamas and Menara MBMR at Mid Valley City.

“The enthusiastic response was largely due to REV.O’s very strategic micro location, lifestyle-focused concept and competitive pricing,” said Gemilang Eramaju Sdn Bhd’s director Jeffrey Kam said in a recent press statement.

REV.O consists of 421 freehold office suites ranging between 318 and 597 sq ft with prices starting at RM323,185. The maintenance fee is 35 sen per sq ft.

Each unit comes with air-conditioning and laminated timber flooring, while the development off ers an array of facilities such as an infinity pool and lifestyle fitness centre.

REV.O is part of the 10-acre Aurora Place development next to Pavilion Bukit Jalil which is being developed by Malton Bhd. It has a gross development value of RM170 million.

The 2,100 parking bays in Aurora Place will be shared with office units in Aurora Sovo. Aurora Place is accessible via the Awan Besar and Bukit Jalil LRT stations as well as five major highways. Nearby amenities include the Bukit Jalil Recreation Park, Calvary Convention Centre and Bukit Jalil Golf and Country Resort.

(The Edge) Johor’s affordable housing loan scheme starts January

JOHOR BAHRU: The state government’s loan scheme for low-income earners to buy affordable homes in Johor will be available in January.

State housing and local government committee chairman Datuk Abdul Latif Bandi said the scheme was jointly drawn up with Ambank Islamic Bhd.

“This scheme helps the target group obtain their housing loans, which are difficult to be approved by other commercial banks.

“Ambank Islamic will provide funds totalling RM300 million to ensure that the target group obtain financing for their homes,” he said at the state legislative assembly sitting in Nusajaya on Tuesday.

Latif was replying to questions from Puan Sri Azizah Zakaria (BN-Parit Raja), Datuk Dr Adham Baba (Pasir Raja) and Datuk Syed Sis Syed A Rahman (Tanjung Surat) on the difficulty in home financing of affordable housing applicants despite having been certified by the state government.

The scheme was announced by Menteri Besar Datuk Seri Mohamed Khaled Nordin when he was tabling the 2016 Johor Budget recently.

The scheme will assist those eligible to obtain financing for an affordable home, particularly Package A type units priced at RM42,000, and Package B at RM80,000.

(The Edge) Oasia Suites Kuala Lumpur to debut in 1Q2016

KUALA LUMPUR: Far East Hospitality Holdings Pte Ltd, Singapore’s largest operator of hotels and serviced residences, has unveiled its plans to expand the Oasia brand with Malaysia a key plank of its strategy.

It plans to open three hotels and a serviced residence in Malaysia and Singapore next year, adding over 700 rooms to its growing portfolio. Far East Hospitality is the hospitality management arm of the Singapore-listed Far East Orchard Ltd.

The Oasia brand targets mid-tier travellers, and the company says Malaysia’s 25.7 million annual tourist arrivals is prospective for Oasia’s first foray outside of Singapore.

The plan also takes into account the performance of midscale and economy hotels in the earlier half of 2015, which outpaced their luxury counterparts, as reported by property services firm CBRE.

CEO of Far East Hospitality Arthur Kiong announced the plans at the 2015 ITB Asia Conference at Marina Bay Sands earlier this week, noting that “the region continues to mature and attract a strong stream of international arrivals”. He added that the Oasia brand will be brought to “key gateway cities
in the region, kicking off with Kuala Lumpur in the first quarter of 2016”.

Citing the Asean Pulse report by the French-based research firm Ipsos which notes the “rising focus on health and well-being globally and in the region” Oasia has been providing guests a suite of wellness offerings, something which both business and leisure travellers have received well and identify the brand with.

The 247-apartment Oasia Suites Kuala Lumpur is scheduled to open in the first quarter of 2016 (1Q2016). Situated adjacent to Bukit Nanas, the city’s only surviving patch of tropical rainforest, Oasia Suites Kuala
Lumpur will offer guests a retreat within the city and views of the greenery next door.

Oasia Suites will be followed by two more properties in Singapore. Oasia Hotel Downtown opens in 2Q2016 on 100, Peck Seah Street, a short distance from the central business district of Tanjong
Pagar. It will house over 300 rooms and have a façade enveloped by a vertical garden. In 4Q2015, Oasia Residence will open in the island state’s West Coast region. Integrated into the Seahill residential development, it will house 140 units of full-service apartments and facilities.

Far East Hospitality owns more than 10 hotels and manages and operates a combined portfolio of more than 13,000 rooms across close to 90 hotels and serviced residences in Australia, Denmark, Germany, Hungary, Malaysia, New Zealand and Singapore.

(The Edge) Empire City Damansara Mall to open Sept 2016

The Empire City Damansara development in Petaling Jaya, which held the “Party of the Century” in January with celebrities like Paris Hilton and K-pop group 2 AM, has postponed the opening of the mall to September 2016, reports The Edge Financial Daily.

Empire City Damansara, an integrated lifestyle commercial development, was initially expected to open its retail component in November or December this year. It is understood that the opening of the mall, which has two million sq ft in net lettable area (NLA) was moved to May 2016, and eventually to September 2016, said a retailer.

An officer at the mall’s leasing department confirmed the same, and said the delay was because some international tenants had requested for additional time to source goods from their suppliers.

Empire City Damansara Mall is located along the Lebuhraya Damansara Puchong, opposite Mutiara Damansara, on a 23-acre site.

The mall’s anchor tenant, Parkson, will take up some 100,000 sq ft of retail space. According to its developer Mammoth Empire’s website, the mall will also have an Olympic-size ice skating rink, 4DX cinema and ‘luxury courtyard’. Apart from retail and office components, the development will have a Marriott hotel and an Autograph Boutique Hotel.

(The Edge) Ibrahim International Business District in Johor launched

The Sultan of Johor, Sultan Ibrahim Sultan Iskandar, launched the Ibrahim International Business District (IIBD) at the Persada Johor International Convention Centre on Nov 22, in conjunction with his 57th birthday celebrations.

The 250-acre IIBD is a transformation plan developed by Johor Corporation (JCorp) to turn Johor
Bahru into a “metropolis of international standard”. JCorp is the state investment corporation of the Johor government.

Also launched at the event was the mixed-use development, Coronation Square, the first project in IIBD, which has a GDV of RM3 billion. It is scheduled for completion in nine to 10 years.

According to JCorp president and CEO, Datuk Kamaruzzaman Abu Kassim, IIBD has an estimated GDV of between RM20 billion and RM25 billion. The area covered by IIBD is bordered by Jalan Ayer Molek, Jalan Tun Sri Lanang, Jalan Tun Abdul Razak and Jalan Sultan Ibrahim.

Coronation Square sits on a 6.3 acre site and will comprise six towers, a hotel, a hotel with residences, an office, medical suites, and two serviced apartment towers with a mall.

Developed by Coronade Properties Sdn Bhd, its managing director, Datuk Patrick Lim said the first serviced apartment block of 400 units will be put up for sale in mid-2016. The average size of the units is 600 sq ft.


(The Edge) Tiger Synergy to launch Alam Impian in Shah Alam in early 2016

Tiger Synergy Bhd, which slipped into the red in its fi nancial year ended June 30, 2015 (FY2015) from administration costs and pending new projects, will launch three new projects with a combined GDV of RM500 million next year, to turn itself around.

Tiger Synergy managing director Shirley Tan Lee Chin said the group aims to generate a gross profit of RM100 million in FY16 from a net loss of RM2.05 million in FY2015.

She said it will kick offits turn-around plan with its Alam Impian project in Shah Alam, Selangor, early next year. Alam Impian has a GDV of RM300 million and will have 132 semi-detached houses. Tan said earthworks have commenced on the project.

Apart from Alam Impian, Tiger Synergy will be launching two condominium projects, in Gombak and Cheras, with a GDV of RM100 million each. “We aim to launch the two projects by the second quarter of 2016,” said Tan.

(The Edge) Ewein to announce second Penang project

Ewein Bhd is set to announce its second Penang project after City of Dreams. The group expects to make an announcement by year end in relation to its second property development project in Penang, which is expected to have a higher gross development value (GDV) than City of Dreams, which has a GDV of RM800 million. 

Datuk Ewe Swee Kheng, group managing director and deputy chairman of Ewein had earlier said Ewein is on track to achieve a full-year pre-tax profit of RM20 million from its maiden property project, City of Dreams, for the current fi nancial year ending Dec 31, 2015 (FY2015), after the group reported a third-quarter profit surge.

For the third quarter ended Sept 30, 2015 (3QFY15), Ewein’s net profit jumped to RM6.42 million from RM389,000 a year ago, mainly due to the contribution from the group’s property development business.

“Our target (RM20 million) for this year is achievable based on our 3QFY15 results,” he said.

“Our expectation to achieve RM50 million [in pre-tax profit] per year between FY16 and FY19 is also well on track,” he added. Ewein, which is also involved in sheet metal fabrication, will derive most of its profit from property development going forward.

(The Edge) OldTown’s 1HFY16 results within expectations

OldTown Bhd
(Nov 26, RM1.41)
Maintain hold with a higher target price (TP) of RM1.41:

 OldTown Bhd’s second quarter ended Sept 30, 2015 (2QFY16) net profit increased 40.8% quarter-on-quarter (q-o-q) and 18.7% year-on-year (y-o-y) to RM13.35 million. However, quarterly revenue decreased slightly by 1.5% q-o-q, but up marginally by 1% y-o-y to RM92.62 million.

For the first half of FY16 (1HFY16), net profit was registered at RM22.84 million, slightly declining by 0.47% y-o-y. Similarly, revenue decreased by 3% y-o-y to RM186.5 million. The group’s 1HFY16 net profit was within expectations by accounting for 52% and 49% of our full-year net profit forecast and the market consensus’ respectively, mainly supported by positive performance in its fast-moving consumer goods (FMCG) division.

The group’s 1HFY16 net profit decreased slightly amid its lower top line as the better performance of the FMCG segment was not sufficient to mitigate the negative performance of its food and beverage (F&B) segment in 1QFY16. Net profit improved on both yearly and quarterly bases, mainly supported by lower costs of purchasing trading merchandise, food, beverages and consumables.

The F&B segment recorded a decline of 28.6% in profit before tax (PBT) for 1HFY16, mainly attributable to lower earnings achieved in 1QFY16, owing to a reduction in consumer spending during the second quarter of calendar year 2015 (2QCY15) pursuant to the implementation of the goods and services tax (GST) on April 1. Similarly, PBT for 2QFY16 declined by 1.5% y-o-y, mainly attributable to lower revenue for 2QFY16.

However, the F&B division re-ported a PBT of RM5.39 million in 2QFY16, rising 20.9% q-o-q and in line with an increase in revenue of 1% q-o-q, mainly due to lower selling and distribution expenses, and purchasing merchandise in 2QFY16. We reckon that a slight improvement in consumer sentiment compared to the previous quarter supported the earnings of the division.

The FMCG segment continued to lead the group’s earnings. It expanded by 14.37% q-o-q and 8.4% y-o-y in PBT for 2QFY16. The resilient performance was backed by higher export sales generated in the quarter, coupled with a positive impact from a stronger US dollar versus the ringgit plus cost-saving initiatives, especially on packaging materials and direct labour expenses. Meanwhile, for 1HFY16, the division posted a PBT of RM19.74 million, recording an increase of 17.1% compared to 1HFY15.

The improvement came on the back of the segment’s revenue growth of 10.9%. Furthermore, the higher local sales generated in 1QFY16 supported the impressive performance in PBT for 1HFY16.

In Singapore, the group plans to open an estimated three new outlets in FY16, with the introduction of a “Basic” concept. In Indonesia, the group will continue to adopt a sublicensing model to accelerate its expansion plans by targeting to open 10 new outlets. In China, in view of the large population base and growing disposable income, the group is optimistic about the growth potential of its café chain business there and expects to proceed with a relaunch of its operations in 3QFY16.

We are positive on the group’s development plans to sustain its business abroad and margins, as well as improve top-line growth of its café chain operations through various initiatives. Besides, the group’s
FMCG segment will continue to increase its productivity and efficiency through automation of processes and enhancement of internal operation processes.

We maintain our earnings forecasts for FY16 to FY17. We maintain our “hold” call with a higher TP of RM1.41 (previously RM1.30).

We roll over our valuation to FY17 earnings per share forecast of 11.6 sen on 12 times blended industry price-earnings ratio. We are sanguine about the group’s expansion plans as we envisage that the group is able to strengthen its brand name in domestic and international markets in the long run. Besides, we expect consumer sentiment to recover slightly in 1QCY16, as consumers adapt to the GST and rising cost of living.

(The Edge) Aeon’s 3Q net profit falls 31.22% to RM30.03m

KUALA LUMPUR: Aeon Co (M) Bhd’s net profit fell 31.22% to RM30.03 million for the third quarter ended Sept 30, 2015 (3QFY15) from RM43.66 million a year ago, on higher operating costs and interest expenses, and initial costs associated with new store openings.

Revenue for the quarter, however, gained 1.1% to RM940.79 million from RM930.59 million in 3QFY14, despite weaker consumer sentiment, Aeon told Bursa Malaysia yesterday.

For the nine-month period (9MFY15), the Japanese hypermarket and supermarket chain operator saw its net profit shrink 30.84% to RM95.09 million from RM137.5 million in the previous year for the same reason that affected its quarterly earnings.

Revenue for 9MFY15 was, however, up 4.76% to RM2.86 billion from RM2.73 billion in 9MFY14, as turnover from its retail business segment and property management services segment recorded increases of 4.2% and 6.8% respectively.

Going forward, Aeon said the economic and business environment in the final quarter of 2015 will remain challenging.

“Under the current environment, the group will continue to deploy strategic sales and marketing promotional activities to increase its sales and enhance cost efficiency efforts to deliver a commendable performance for 2015,” it added.

Aeon (valuation: 0.5; fundamental: 1.05) shares closed unchanged at RM2.75 yesterday, bringing it a market capitalisation of RM3.86 billion.