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Singapore Daily Bulletin – 20/02/13

CapitaLand To Jointly Develop $3.2b Project In Danga Bay
CapitaLand Malaysia, the wholly-owned subsidiary of CapitaLand announced that it has entered joint venture with Iskandar Waterfront and Temasek to acquire and develop parcels of land in Danga Bay, located in one of the five flagship zones in Johor’s Iskandar Malaysia. This also marks CapitaLand’s first direct large scale township investment and development in Malaysia.  The joint venture will acquire 71.4 acres or 3.1 million square feet of freehold net land in A2 Island for a purchase price of RM811 million (approximately $324 million). The land purchase price will be paid over a period of four and a half years, corresponding with the infrastructure and development phases.

Significance: CapitaLand is confident that the development will be attractive and well received by the market given its strategic location – close to Johor Bahru city centre and accessible via the newly constructed Coastal Highway; with the Singapore-Malaysia Causeway to its east and just 29 kilometres away from Legoland and EduCity in the west.

Koh Brothers Posts 403% Jump In 4Q12 Earnings
Despite challenges surrounding global markets and volatility in the local property sector, Koh Brothers managed to turn in a sound performance with earnings for the fourth quarter ended December jumped 403 percent to $6.5 million while revenue jumped 74 percent to $116.1 million. Koh Brothers attributed the strong performance to progressive revenue recognition from its 99-year residential project Parc Olympia in Upper Changi, which was launched last July. For the full year ended December, Koh Brothers achieved a net profit of $19.7 million while revenue slipped 12 percent to $299.5 million. The board has also proposed a first and final dividend of $0.0035 per ordinary share.

Significance: Being one of the major players in the civil engineering and building materials sector, Koh Brothers said it is well positioned to be a beneficiary of the continued demand for infrastructure projects in Singapore. Notably, statistics from the Building and Construction Authority indicated that total construction demand for 2013 is expected to be between $26 billion and $32 billion, from $28.1 billion in 2012.

Roxy-Pacific Achieves Record Earnings In FY12
Roxy-Pacific Holdings recorded strong performance in FY12 and 4Q12 on the back of higher revenue contribution from the property development segment. Notably, earnings for the quarter rose 97 percent to $23.5 million while earnings for the full year increased 13 percent to $58.4 million. Meanwhile, turnover for the quarter rose 33 percent to $56.2 million while turnover for the full year increased 4 percent to $190.6 million. With the good performance in FY12, a final cash dividend of $0.0092 per share has also been proposed.

Significance: Roxy Pacific continues to enjoy high earnings visibility, with progress billings of $861.7 million to be recognised from 1Q13 to FY16. With strong cash position and net debt to ANAV (adjusted net asset value) of 0.56 times, this will put Roxy Pacific in a good position to tap on opportunities to grow businesses, in particular, its hotel business.