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Malaysia Daily Bulletin – 19/04/13
RM1.3b Land Deal With Dijaya Considered Valid, Says PNSB
State-owned Permodalan Negeri Selangor (PNSB) confirmed that the land deal with Dijaya Corporation worth RM1.3 billion is valid, despite the sales and purchase agreement (S&P) being signed after the dissolution of the parliament and the Selangor state assembly. “It is valid, even though the parliament is dissolved. This is because PNSB is a company. I don’t think there is any problem on that as far as we know. That is why we carried out with the signing of the agreement on 15 April,” said PNSB chief executive officer Datuk Haji Ahmad Omar during a press conference yesterday. Selangor’s caretaker Menteri Besar (MB) Tan Sri Abdul Khalid Ibrahim had earlier this week said that the deal was not confirmed. PNSB chief executive officer rebuked the statement made by the MB and affirmed that the joint conference was set to clear the air regarding the signed agreement.
Significance: The purchase consideration comprised of land purchase price of RM587 million, interest cost, share of gross development value (GDV) and profit entitlement from the development of the land. It is expected contribute significantly to the Dijaya group’s prospects in the coming years.
Matrix Concepts To Launch RM680m Projects In Negeri Sembilan, Johor
Property developer Matrix Concepts Holdings unveiled its plans to launch projects with a GDV of RM680 million. 82 percent of the new launches would be in Negeri Sembilan, which would include the RM400.10 million integrated flagship township, Bandar Sri Sendayan while the remaining projects would be in Johor, it said. The projects would be built on 315.2 acres of land in Negeri Sembilan and Johor in 2013, according to the Negeri Sembilan-based property developer which is also seeking a listing on the Main Market of Bursa Malaysia. One of its flagship projects, Bandar Sri Sendayan, which covers 5,233 acres, is an integrated township that consists of residential, commercial, and industrial properties. It is situated near the Kuala Lumpur International Airport (KLIA), Putrajaya, and Cyberjaya. In conjunction with its initial public offering, Matrix Concepts had yesterday signed underwriting and placement agreements with Hong Leong Investment Bank, the principal adviser, managing underwriter, co-underwriter and co-placement agent; and Kenanga Investment Bank, its co-underwriter and co-placement agent.
Significance: Matrix Concepts was set up in 1996, and has developed about RM2 billion worth of residential and commercial properties mainly in Negeri Sembilan and Johor. It also developed a strong reputation for delivering quality and affordable properties.
Ken Holdings Focus On Recurring Income Projects
Ken Holdings plans to introduce more recurring income projects to provide steady earnings in the long term. The property developer is aiming to launch three new development projects this year consisting of the fifth phase of the Ken Rimba township in Shah Alam, a boutique property development in Genting Highlands, and the first phase township development in Iskandar Malaysia. Currently the group is developing a commercial development in Taman Tun Dr Ismail (Ken TTDI), which is RM130 million maiden recurring income project that is expected to be completed next year. According to executive chairman Datuk Kenny Tan Boon Kang, the project will carry with similar components to be built in Iskandar Malaysia. Over at Penang, Tan said the development was being halted at the moment due to certain disagreements with the authorities, and no timeframe was set for the project to resume. For its green residential development in Kelantan, the project is expected to boost the company’s order book to more than RM2 billion.
Significance: The recurring income projects are part of the group’s diversification strategy to ensure sustainable growth so that the company can provide decent dividends to shareholders. Moving forward, the group will focus on niche development projects in Iskandar Malaysia which comprise highly-rated green buildings at affordable prices.
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