George Town and Malacca receive World Heritage Site Award
KUALA LUMPUR: Thousands of Malaysians and foreign tourists witnessed the official awarding of the Unesco World Heritage Site to George Town and Malacca at a colourful ceremony at Dataran Merdeka last night.
The award arrived on an elephant and was passed to Unesco’s regional science bureau for Asia and the Pacific director Hubert J. Gijzen who then gave it to Education Minister Datuk Seri Hishammud-din Tun Hussein who is Malaysia’s Unesco national committee president.
The Yang di-Pertuan Agong, Tuanku Mizan Zainal Abidin, then received the award from Hishammuddin.
Penang Governor Tun Dr Abd Rahman Abbas, Malacca Governor Tun Mohd Khalil Yaakob, Prime Minister Datuk Seri Abdullah Ahmad Badawi, Penang Chief Minister Lim Guan Eng, Malacca Chief Minister Datuk Mohd Ali Rustam and Unity, Culture, Arts and Heritage Minister Datuk Seri Mohd Shafie Apdal witnessed the ceremony.
“The heritage status put us on the world tourism map, said Abdullah.
“These towns have a heavy responsibility to maintain the status. They have to preserve buildings, monuments and the environment,” he added.
Cultural troupes from Malacca and Penang put up musical plays that illustrated the founding of the towns.
There were also boria, ghazal and chingay performances from Penang while Malacca’s famous dondang sayang and Portuguese dancers performed for the crowd.
By The Star
Sunday, November 23, 2008
Tuesday, November 18, 2008
MM2H members may be allowed to work.
PETALING JAYA: The government may further relax rules for the Malaysia My Second Home (MM2H) programme to allow foreigners to work in certain sectors.
Industry sources said the move could help attract more foreigners, especially those with certain skills, to buy homes in Malaysia and also enable local companies to tap their work experience.
Currently, those who come here under MM2H are not allowed to work.
It is not clear yet which sectors could be liberalised for MM2H participants but the services industry is touted as a strong possibility.
By allowing MM2H participants to work, the government will give a much needed boost to the country’s property and retail sectors, both already feeling the pinch of the current global credit crisis.
According to a source familiar with the MM2H programme, deliberations are ongoing at the sub-committee level of the National Economic Action Committee in the Prime Minister’s Department to make the MM2H more attractive.
Another source said the government is also studying a property industry’s request to relocate the MM2H secretariat, now parked under the ministry of tourism, to the PM’s Department to give it more clout. “As it is, MM2H does not seem like a priority project of the tourism ministry. I see it more as its stepchild,” said the source.
The government has been reviewing the MM2H regulations from time to time but the impact of the current global credit crunch demands that efforts be stepped up, industry sources said. By making Malaysia their second home, high net worth foreigners and their next-of-kin and friends,would be persuaded to invest in Malaysia.
MM2H has evolved from the Silver Hair Programme which the government introduced in 1996 to convince foreign retirees above 50 years of age into making Malaysia their second home. MM2H participants are issued with multiple-entry social visit passes for 10 years. They are no longer required to have a local sponsor.
Promoting MM2H aggressively is in line with objectives of Malaysia Property Inc (MPI), a joint public and private sector initiative formed early this year to brand and promote Malaysia as a property destination haven.
MPI has a RM25 million grant from the Economic Planning Unit and it sees the participation of the International Real Estate Federation (Fiabci) Malaysian Chapter and the Real Estate and Developers Association Malaysia (Rehda). It is understood that MPI will kick off its maiden international property roadshow in Tokyo next month before moving on to Britain and the Middle East.
One complaint about the MM2H is that it lacked co-ordinated promotional efforts by the various government agencies while guidelines are also interpreted differently.
Fiabci Malaysia president Datuk Richard Fong told The Edge Financial Daily the programme needs more exposure and fine-tuning, adding that he has also received feedback that “different officers sometimes offer different interpretations of the guidelines”. The success of the programme rested on both its publicity as well as implementation, added Fong.
Under MM2H, foreigners buying residential properties worth RM250,000 in Peninsular Malaysia and RM300,000 in East Malaysia are exempted from having to get approval from the Foreign Investment Committee (FIC).
One sticky point however is that foreigners married to Malaysians are not eligible for MM2H incentives like the 10-year social visit pass.
By The Edge
Industry sources said the move could help attract more foreigners, especially those with certain skills, to buy homes in Malaysia and also enable local companies to tap their work experience.
Currently, those who come here under MM2H are not allowed to work.
It is not clear yet which sectors could be liberalised for MM2H participants but the services industry is touted as a strong possibility.
By allowing MM2H participants to work, the government will give a much needed boost to the country’s property and retail sectors, both already feeling the pinch of the current global credit crisis.
According to a source familiar with the MM2H programme, deliberations are ongoing at the sub-committee level of the National Economic Action Committee in the Prime Minister’s Department to make the MM2H more attractive.
Another source said the government is also studying a property industry’s request to relocate the MM2H secretariat, now parked under the ministry of tourism, to the PM’s Department to give it more clout. “As it is, MM2H does not seem like a priority project of the tourism ministry. I see it more as its stepchild,” said the source.
The government has been reviewing the MM2H regulations from time to time but the impact of the current global credit crunch demands that efforts be stepped up, industry sources said. By making Malaysia their second home, high net worth foreigners and their next-of-kin and friends,would be persuaded to invest in Malaysia.
MM2H has evolved from the Silver Hair Programme which the government introduced in 1996 to convince foreign retirees above 50 years of age into making Malaysia their second home. MM2H participants are issued with multiple-entry social visit passes for 10 years. They are no longer required to have a local sponsor.
Promoting MM2H aggressively is in line with objectives of Malaysia Property Inc (MPI), a joint public and private sector initiative formed early this year to brand and promote Malaysia as a property destination haven.
MPI has a RM25 million grant from the Economic Planning Unit and it sees the participation of the International Real Estate Federation (Fiabci) Malaysian Chapter and the Real Estate and Developers Association Malaysia (Rehda). It is understood that MPI will kick off its maiden international property roadshow in Tokyo next month before moving on to Britain and the Middle East.
One complaint about the MM2H is that it lacked co-ordinated promotional efforts by the various government agencies while guidelines are also interpreted differently.
Fiabci Malaysia president Datuk Richard Fong told The Edge Financial Daily the programme needs more exposure and fine-tuning, adding that he has also received feedback that “different officers sometimes offer different interpretations of the guidelines”. The success of the programme rested on both its publicity as well as implementation, added Fong.
Under MM2H, foreigners buying residential properties worth RM250,000 in Peninsular Malaysia and RM300,000 in East Malaysia are exempted from having to get approval from the Foreign Investment Committee (FIC).
One sticky point however is that foreigners married to Malaysians are not eligible for MM2H incentives like the 10-year social visit pass.
By The Edge
Wednesday, November 5, 2008
Chinese firm ready to start work on Penang Bridge.
GEORGE TOWN: Despite talk about the second bridge project running aground, with UEM Builders Berhad yet to ink the deal, China Harbour Engineering Company (CHEC) is taking possession of the site this Saturday to proceed with its part of the deal.
Jambatan Kedua Sdn Bhd (JKSB) managing director Tan Sri Zaini Omar said the project will begin on schedule and is on track to be completed by end of 2011, as projected.
Zaini told The Edge Financial Daily the project will continue regardless of which company was awarded the superstructure portion. That portion is currently offered to UEM at RM1.3 billion, while CHEC’s portion is worth RM2.2 billion.
He said there was “still time” before there was any cause to worry.
“We are giving UEM all the time they require to restudy and renegotiate with us, as long as in five months, work on the superstructure commences.
“CHEC has been given the letter of award so the construction of the substructure and mainspan will proceed and they will officially take over the site from this Saturday.
CHEC has begun dredging and soil testing work.
“The works will be carried out in four segments, so that in five months time, the superstructure portion can commence.
“If we were to wait for the entire substructure and mainspan to be completed before commencing the superstructure works, the bridge will not be completed on time,” he said.
UEM has also been asked to hand over the design of the land portion of the project, estimated to be worth RM800 million.
The land portion is to be offered via restricted tender.
“UEM has carried out the design for the land portion of the project, so we have asked for these to be passed on, so we do not have to waste time and money for another design,” Zaini said, adding that work on the land portion would also start in the next six or seven months.
JKSB is the special vehicle unit set up by the government to handle the Penang Second Crossing project after it was launched a two of years ago.
It has also been appointed as the concessionaire for the Penang Second Crossing, with the Letter of Intent (LOI) given to UEM being withdrawn by the government recently, drawing the ire of UEM.
UEM is also said to be demanding RM1.5 billion instead of the RM1.3 million it has been offered.
While UEM has stated that the cost of the bridge could go up to RM5 billion, the government has capped the project at RM4.3 billion but with a variation of price (VOP) option in the event of higher costs of materials.
By The Edge.
Jambatan Kedua Sdn Bhd (JKSB) managing director Tan Sri Zaini Omar said the project will begin on schedule and is on track to be completed by end of 2011, as projected.
Zaini told The Edge Financial Daily the project will continue regardless of which company was awarded the superstructure portion. That portion is currently offered to UEM at RM1.3 billion, while CHEC’s portion is worth RM2.2 billion.
He said there was “still time” before there was any cause to worry.
“We are giving UEM all the time they require to restudy and renegotiate with us, as long as in five months, work on the superstructure commences.
“CHEC has been given the letter of award so the construction of the substructure and mainspan will proceed and they will officially take over the site from this Saturday.
CHEC has begun dredging and soil testing work.
“The works will be carried out in four segments, so that in five months time, the superstructure portion can commence.
“If we were to wait for the entire substructure and mainspan to be completed before commencing the superstructure works, the bridge will not be completed on time,” he said.
UEM has also been asked to hand over the design of the land portion of the project, estimated to be worth RM800 million.
The land portion is to be offered via restricted tender.
“UEM has carried out the design for the land portion of the project, so we have asked for these to be passed on, so we do not have to waste time and money for another design,” Zaini said, adding that work on the land portion would also start in the next six or seven months.
JKSB is the special vehicle unit set up by the government to handle the Penang Second Crossing project after it was launched a two of years ago.
It has also been appointed as the concessionaire for the Penang Second Crossing, with the Letter of Intent (LOI) given to UEM being withdrawn by the government recently, drawing the ire of UEM.
UEM is also said to be demanding RM1.5 billion instead of the RM1.3 million it has been offered.
While UEM has stated that the cost of the bridge could go up to RM5 billion, the government has capped the project at RM4.3 billion but with a variation of price (VOP) option in the event of higher costs of materials.
By The Edge.
Monday, November 3, 2008
Plenitude reviews projects on soft property sector
KUALA LUMPUR: Plenitude Bhd is reviewing next year’s proposed launch of three housing projects in Kuala Lumpur and Penang, in view of the softening local property market.
Executive director Tan Seng Chye said the company was monitoring the economic conditions and market demand before proceeding with the projects.
“We hope to go as planned but we will be looking at the situation closely and study the demand first,” he said after the company AGM yesterday.
Plenitude non-independent non-executive director Zukarnine Shah Zainal Abidin (left) and Tan Seng Chye at the media briefing.
The Kuala Lumpur projects, comprising bungalows, have a gross development value (GDV) of RM147mil for Damansara Heights and RM78mil for Bukit Tunku. Bungalows in the two areas carry price tags from RM3mil.
The Penang project comprises three-storey semi-detached houses and condominiums with a GDV of RM184mil.
Tan said Plenitude expected to maintain pre-tax profit margin for the financial year ending June 30 (FY09) at a level similar to FY08’s 31%, as building material prices had come off their peaks earlier this year.
“We were not affected by the high prices earlier as our projects were near completion.
“Building material prices have eased in the last few months. We’ll be able to maintain margins, going forward, if the prices stabilise,” he said.
Although the property market had seen a slowdown since the first half of this year, Plenitude’s earnings for FY09 would be supported by its unbilled sales of RM216mil, he said.
Earlier this year, the company launched Tebrau City Residences in Johor which has a GDV of RM321mil.
The project, comprising serviced apartments, has secured a take-up rate of 60%.
Plenitude said it currently has 1,849 acres of undeveloped land, which it could use for projects in the next 10 to 15 years.
For FY08, Plenitude’s net profit rose 39% to RM78.6mil while revenue surged 46% to RM347.8mil.
By The Star.
Executive director Tan Seng Chye said the company was monitoring the economic conditions and market demand before proceeding with the projects.
“We hope to go as planned but we will be looking at the situation closely and study the demand first,” he said after the company AGM yesterday.
Plenitude non-independent non-executive director Zukarnine Shah Zainal Abidin (left) and Tan Seng Chye at the media briefing.
The Kuala Lumpur projects, comprising bungalows, have a gross development value (GDV) of RM147mil for Damansara Heights and RM78mil for Bukit Tunku. Bungalows in the two areas carry price tags from RM3mil.
The Penang project comprises three-storey semi-detached houses and condominiums with a GDV of RM184mil.
Tan said Plenitude expected to maintain pre-tax profit margin for the financial year ending June 30 (FY09) at a level similar to FY08’s 31%, as building material prices had come off their peaks earlier this year.
“We were not affected by the high prices earlier as our projects were near completion.
“Building material prices have eased in the last few months. We’ll be able to maintain margins, going forward, if the prices stabilise,” he said.
Although the property market had seen a slowdown since the first half of this year, Plenitude’s earnings for FY09 would be supported by its unbilled sales of RM216mil, he said.
Earlier this year, the company launched Tebrau City Residences in Johor which has a GDV of RM321mil.
The project, comprising serviced apartments, has secured a take-up rate of 60%.
Plenitude said it currently has 1,849 acres of undeveloped land, which it could use for projects in the next 10 to 15 years.
For FY08, Plenitude’s net profit rose 39% to RM78.6mil while revenue surged 46% to RM347.8mil.
By The Star.
Local Real Estate cheap for foreigners
Laws are lenient for them to buy and sell property
DESPITE the current global financial meltdown, the Malaysian property market still remains attractive to foreign investors, according to International Real Estate Federation (FIABCI) Malaysia honorary treasurer Yeow Thit Sang.
“The local property market is still attractive in terms of prices. Properties in Malaysia are among the cheapest in the region,” he told StarBiz.
“Our laws are also comparatively more lenient for foreigners to buy and sell property in Malaysia,” he added.
Yeow said foreigners wanting to purchase property in countries such as Indonesia, the Philippines, Thailand and Vietnam were generally put off by the countries’ respective laws.
Another plus point for foreigners who bought property in Malaysia is that they are not subjected to death taxes, Yeow said.
“Japan has a death tax of 70%. Even in England death duties are stringent. That is why all the Lords are becoming paupers!”
Yeow said FIABCI-Malaysia would be sending a representative to Japan in December to create more awareness about the local property market and to encourage more foreign direct investment (FDI) into Malaysia.
He also said the local political development was not creating uncertainty and was not deterring foreign investors from Malaysia.
“The political scene in Malaysia is a normal democratic process. It is a sign of political maturity rather than uncertainty. It is not causing chaos like some countries,” Yeow said.
On another issue, when asked if the local property market was in a slump, Yeow said: “Our property market has not hit a slump. It is more of a slowdown.”
He attributed the slowdown to rising raw material prices that was sparked by the fuel price hike in June.
“Problems occur when construction cost goes up midway through a project and it is uncertain if it is the developer, contractor or consumer that will bear the cost,” Yeow said.
He said many contractors were increasingly reluctant to take on projects without a variation clause spelt out in the contract.
“Both contractors and developers should insist on a variation clause in their contracts to safeguard their interests.
“Should construction costs go up midway through the project, they can immediately determine who bears the cost and not have projects hanging,” Yeow said.
Going forward, he said he did not foresee see a slump in the local property market.
“There can never be a slump so long as there is demand. There is a lot of migration from rural to urban areas.
“The population is growing steadily and there will always be a need to house people,” he said.
“From an investment point of view, buying property is also a good safeguard against inflation,” Yeow added.
Yeow believes a high level of unemployment in the country could cause the local property sector to tumble.
“If unemployment were to rise, people will not be able to pay their loans and that will cause a slump. When that happens, banks will also take back the property,” he said, adding that the unemployment rate in Malaysia was low now.
“We still need to bring in foreign workers,” Yeow said.
On another note, Yeow said the standard of property development in Malaysia had improved tremendously over the years and it was being benchmarked against international standards.
“Our developments are definitely on par with those of other countries. Many of our projects have won international awards such as FIABCI International Prix d’Excellence,” he said.
The International Prix d’Excellence is an annual competition that honours the world’s best property projects.
On the local front, developers are recognised for their development projects and are honoured at the annual Malaysia Property Award.
Winners of the Malaysia Property Award in their relevant categories will go on to represent Malaysia the following year at the International Prix d’Excellence.
FIABCI Malaysia will be organising its 16th Malaysia Property Award on Nov 12 at the One World Hotel in Petaling Jaya, with Malayan Banking Bhd as the official sponsor.
The categories that will be contested are: Property Man of the Year, Master Plan, Residential Development (low rise and high rise), Retail Development, Industrial Development, Specialised Project (two categories), Office Development, Hotel Development and Resort Development.
The Yang di-Pertuan Agong and Raja Permaisuri Agong will be the guests of honour at the prestigious event.
By The Star.
DESPITE the current global financial meltdown, the Malaysian property market still remains attractive to foreign investors, according to International Real Estate Federation (FIABCI) Malaysia honorary treasurer Yeow Thit Sang.
“The local property market is still attractive in terms of prices. Properties in Malaysia are among the cheapest in the region,” he told StarBiz.
“Our laws are also comparatively more lenient for foreigners to buy and sell property in Malaysia,” he added.
Yeow said foreigners wanting to purchase property in countries such as Indonesia, the Philippines, Thailand and Vietnam were generally put off by the countries’ respective laws.
Another plus point for foreigners who bought property in Malaysia is that they are not subjected to death taxes, Yeow said.
“Japan has a death tax of 70%. Even in England death duties are stringent. That is why all the Lords are becoming paupers!”
Yeow said FIABCI-Malaysia would be sending a representative to Japan in December to create more awareness about the local property market and to encourage more foreign direct investment (FDI) into Malaysia.
He also said the local political development was not creating uncertainty and was not deterring foreign investors from Malaysia.
“The political scene in Malaysia is a normal democratic process. It is a sign of political maturity rather than uncertainty. It is not causing chaos like some countries,” Yeow said.
On another issue, when asked if the local property market was in a slump, Yeow said: “Our property market has not hit a slump. It is more of a slowdown.”
He attributed the slowdown to rising raw material prices that was sparked by the fuel price hike in June.
“Problems occur when construction cost goes up midway through a project and it is uncertain if it is the developer, contractor or consumer that will bear the cost,” Yeow said.
He said many contractors were increasingly reluctant to take on projects without a variation clause spelt out in the contract.
“Both contractors and developers should insist on a variation clause in their contracts to safeguard their interests.
“Should construction costs go up midway through the project, they can immediately determine who bears the cost and not have projects hanging,” Yeow said.
Going forward, he said he did not foresee see a slump in the local property market.
“There can never be a slump so long as there is demand. There is a lot of migration from rural to urban areas.
“The population is growing steadily and there will always be a need to house people,” he said.
“From an investment point of view, buying property is also a good safeguard against inflation,” Yeow added.
Yeow believes a high level of unemployment in the country could cause the local property sector to tumble.
“If unemployment were to rise, people will not be able to pay their loans and that will cause a slump. When that happens, banks will also take back the property,” he said, adding that the unemployment rate in Malaysia was low now.
“We still need to bring in foreign workers,” Yeow said.
On another note, Yeow said the standard of property development in Malaysia had improved tremendously over the years and it was being benchmarked against international standards.
“Our developments are definitely on par with those of other countries. Many of our projects have won international awards such as FIABCI International Prix d’Excellence,” he said.
The International Prix d’Excellence is an annual competition that honours the world’s best property projects.
On the local front, developers are recognised for their development projects and are honoured at the annual Malaysia Property Award.
Winners of the Malaysia Property Award in their relevant categories will go on to represent Malaysia the following year at the International Prix d’Excellence.
FIABCI Malaysia will be organising its 16th Malaysia Property Award on Nov 12 at the One World Hotel in Petaling Jaya, with Malayan Banking Bhd as the official sponsor.
The categories that will be contested are: Property Man of the Year, Master Plan, Residential Development (low rise and high rise), Retail Development, Industrial Development, Specialised Project (two categories), Office Development, Hotel Development and Resort Development.
The Yang di-Pertuan Agong and Raja Permaisuri Agong will be the guests of honour at the prestigious event.
By The Star.
Friday, October 31, 2008
MRCB to start work on Penang Sentral by year-end.
PENANG: Malaysian Resources Corporation Bhd (MRCB) is expected to begin work on the first phase of the integrated transportation hub at the Penang Sentral in Butterworth by the end of the year, and as soon as efforts to relocate hawkers to a new site are completed.
Its director, Datuk Ahmad Ibnihajar, said at present, more than 50 hawkers conducting business in the vicinity of the express bus station, near the Sultan Abdul Halim ferry terminal, had to be relocated to enable the work to begin.
He said a new hawker’s complex with more than 60 stalls had been completed and would be handed over to the Seberang Perai Municipal Council (MPSP).
The stalls will be allocated to those hawkers who previously traded at the bus terminal complex which was razed by fire a few years ago.
“We will begin work on the hub as soon as the MPSP finishes allocating the stalls to the hawkers concerned. If the MPSP concludes this task quickly, we will expedite the work planned and the first phase is expected to be completed in 2013,” he told reporters after presenting the MRCB Student’s Leadership Excellence Award 2008 here yesterday.
Ahmad, who is also the managing director of Penang Port Sdn Bhd (PPSB), admitted that work on the project had been delayed due to the problem of relocating the hawkers who did not want to be far from the present bus station, as well as delays in taking over some parcels of land.
Apart from relocating the hawkers, he said that the present express bus operations would also be moved to the temporary bus terminal currently used by RapidPenang, by the middle of next month, to enable work to commence.
The Penang Sentral is a component of the Northern Corridor Economic Region (NCER), with an estimated gross development value in excess of RM2 billion, and it covers a land area of 557,418 sq metres (six million square feet).
The Penang Sentral project has four phases which integrate all land and sea services — the ferry, bus, taxi and rail. It is a joint venture between MRCB and Pelaburan Hartanah Bumiputera Bhd. — Bernama
Its director, Datuk Ahmad Ibnihajar, said at present, more than 50 hawkers conducting business in the vicinity of the express bus station, near the Sultan Abdul Halim ferry terminal, had to be relocated to enable the work to begin.
He said a new hawker’s complex with more than 60 stalls had been completed and would be handed over to the Seberang Perai Municipal Council (MPSP).
The stalls will be allocated to those hawkers who previously traded at the bus terminal complex which was razed by fire a few years ago.
“We will begin work on the hub as soon as the MPSP finishes allocating the stalls to the hawkers concerned. If the MPSP concludes this task quickly, we will expedite the work planned and the first phase is expected to be completed in 2013,” he told reporters after presenting the MRCB Student’s Leadership Excellence Award 2008 here yesterday.
Ahmad, who is also the managing director of Penang Port Sdn Bhd (PPSB), admitted that work on the project had been delayed due to the problem of relocating the hawkers who did not want to be far from the present bus station, as well as delays in taking over some parcels of land.
Apart from relocating the hawkers, he said that the present express bus operations would also be moved to the temporary bus terminal currently used by RapidPenang, by the middle of next month, to enable work to commence.
The Penang Sentral is a component of the Northern Corridor Economic Region (NCER), with an estimated gross development value in excess of RM2 billion, and it covers a land area of 557,418 sq metres (six million square feet).
The Penang Sentral project has four phases which integrate all land and sea services — the ferry, bus, taxi and rail. It is a joint venture between MRCB and Pelaburan Hartanah Bumiputera Bhd. — Bernama
Thursday, October 30, 2008
S'pore in talks with Sands to 'facilitate' resort's success.
SINGAPORE: The Singapore Tourism Board is in talks with Las Vegas Sands Corp, the developer of the city’s US$4 billion (RM14.28 billion) downtown casino-resort, to “facilitate the success” of the project.
The casino operator said last week it hired an investment bank to raise more capital with the help of billionaire chief executive officer Sheldon Adelson, driving shares lower. The stock has fallen 95% this year, compared with the 36% decline in the Standard and Poor’s 500 Index.
“The Singapore Tourism Board is monitoring the situation and is aware that the current uncertain economic climate may give rise to concerns,” the tourism board said in an emailed statement. “We are therefore working closely and are in dialogue with” Las Vegas Sands’s Singapore unit, Marina Bay Sands.
Casino cash flow is dwindling amid an economic slump and financial crisis, just as the Las Vegas-based casino operator undertakes its biggest expansion. The owner of the Venetian and Palazzo casino resorts on the Las Vegas Strip is building a US$12 billion complex in Macau in addition to projects such as the US$800 million Sands Bethworks in Bethlehem, Pennsylvania.
Las Vegas Sands said in an emailed statement in Singapore it’s in a “quiet period” ahead of its earnings announcement, and reiterated that the development of its resort in the city-state “remains on track.”
Earlier this month, Adelson and his family invested US$475 million in the company to strengthen its capital and help prevent it from tripping a US loan covenant.
“We have an agreement with Marina Bay Sands that takes into account various eventualities but it is premature to speculate at this stage,” the Singapore Tourism Board said.
The Sands’s resort is scheduled to open late in 2009, while a unit of Genting Bhd, Asia’s biggest publicly traded casino operator, will open its gaming project on the resort island of Sentosa in 2010. Both companies will be the city’s only two casino operators for 10 years. — Bloomberg
The casino operator said last week it hired an investment bank to raise more capital with the help of billionaire chief executive officer Sheldon Adelson, driving shares lower. The stock has fallen 95% this year, compared with the 36% decline in the Standard and Poor’s 500 Index.
“The Singapore Tourism Board is monitoring the situation and is aware that the current uncertain economic climate may give rise to concerns,” the tourism board said in an emailed statement. “We are therefore working closely and are in dialogue with” Las Vegas Sands’s Singapore unit, Marina Bay Sands.
Casino cash flow is dwindling amid an economic slump and financial crisis, just as the Las Vegas-based casino operator undertakes its biggest expansion. The owner of the Venetian and Palazzo casino resorts on the Las Vegas Strip is building a US$12 billion complex in Macau in addition to projects such as the US$800 million Sands Bethworks in Bethlehem, Pennsylvania.
Las Vegas Sands said in an emailed statement in Singapore it’s in a “quiet period” ahead of its earnings announcement, and reiterated that the development of its resort in the city-state “remains on track.”
Earlier this month, Adelson and his family invested US$475 million in the company to strengthen its capital and help prevent it from tripping a US loan covenant.
“We have an agreement with Marina Bay Sands that takes into account various eventualities but it is premature to speculate at this stage,” the Singapore Tourism Board said.
The Sands’s resort is scheduled to open late in 2009, while a unit of Genting Bhd, Asia’s biggest publicly traded casino operator, will open its gaming project on the resort island of Sentosa in 2010. Both companies will be the city’s only two casino operators for 10 years. — Bloomberg
YTL takes control of S'pore MP REIT for RM675m
KUALA LUMPUR: YTL Corporation Bhd is buying a 26% stake in Singapore-listed Macquarie Prime REIT (MP REIT) and a 50% stake in Prime REIT Management Holdings Pte Ltd (PRMH) from Macquarie Bank Ltd for a total of S$285 million (RM675 million) cash.
YTL Corp will acquire 247.1 million MP REIT units at S$0.82 each or a total of about S$202.6 million, representing a sharp discount of 49% to the REIT’s net asset value of S$1.62 but a 17% premium over its 30-day volume weighted average price. MP REIT has tumbled to S$0.54 from a high of S$1.27 in February amid the collapse of equity markets worldwide.
It will pay another S$62 million cash to acquire the 50% stake comprising 1.5 million PRMH shares and all its redeemable preference shares (RPS) comprising one class A RPS and one class B RPS.
Additionally, YTL Corp also agreed to pay S$20 million for services to be rendered by Macquarie Bank until the completion of the proposed acquisitions by the first quarter of next year.
PRMH is the holding company of Macquarie Pacific Star Prime REIT Management Ltd, which is the REIT manager of MP REIT, and Macquarie Pacific Star Property Management Ptd Ltd — the property manager of MP REIT’s properties in Singapore. The acquisition of the 50% stake in PRMH will enable YTL Corp to gain control of the REIT.
The acquisitions, which will be funded by proceeds from the US$300 million (RM1.06 billion) five-year guaranteed exchangeable bonds issued by YTL Corp subsidiary YTL Corp Finance (Labuan) Ltd on May 15, 2007, may mark the start of YTL Corp’s shopping spree for attractively priced properties during the current economic downturn.
YTL Corp is currently sitting on a cash pile of over RM11 billion.
Speaking to The Edge Financial Daily yesterday, YTL Corp managing director Tan Sri Francis Yeoh, said: “It is rather rare to get such attractive price for a REIT that owns S$2.2 billion worth of properties.”
He said MP REIT, which will be renamed Starhill Global REIT, would be a vehicle for YTL Corp to establish its presence in Singapore as well as internationally.
“We are always on the lookout for value acquisitions to add to our portfolio, and believe that the combined experience and connectivity of YTL Corp and MP REIT will provide the opportunity and platform to realise greater synergies and create further value for these landmark assets,” said Yeoh.
He added that YTL group’s experience in setting up and managing Starhill REIT would come in handy.
MP REIT is expected to offer an attractive yield of 9.4% based on Bloomberg market consensus on a distribution of 7.7 Singapore cents per unit next year. Its distribution policy is to distribute to unitholders at least 90% of its taxable income.
For the six months ended June 30, MP REIT recorded a net income available for distribution of S$34.2 million while revenue came in at S$60.6 million. Last year, it posted an annual net income available for distribution of S$59 million on revenue of S$103 million.
MP REIT’s asset portfolio now comprises 10 properties in three countries, valued at about S$2.2 billion. Its borrowings amounted to S$655.1 million as at June 30.
It invests primarily in real estate used for retail and office purposes. The listed entity has two landmark properties in Orchard Road, Singapore’s premier shopping and tourist precinct. Its portfolio includes a 74.23% strata title interest in Wisma Atria (Singapore) and a 27.23% strata title interest in Ngee Ann City.
MP REIT also owns seven properties in the prime areas of Roppongi, Shibuya-ku, Minato-ku and Meguro-ku in Tokyo, Japan and a premier retail property in Chengdu, central China.
Upon completion of the acquisition, Yeoh will be appointed as the REIT Manager’s executive chairman.
Other YTL Corp developments in Singapore include the Sandy Island and Lakefront developments, which are part of the Sentosa Cove project, and the Westwood Apartments, situated in Orchard Boulevard, which was acquired in November 2007.
By The Edge Daily
YTL Corp will acquire 247.1 million MP REIT units at S$0.82 each or a total of about S$202.6 million, representing a sharp discount of 49% to the REIT’s net asset value of S$1.62 but a 17% premium over its 30-day volume weighted average price. MP REIT has tumbled to S$0.54 from a high of S$1.27 in February amid the collapse of equity markets worldwide.
It will pay another S$62 million cash to acquire the 50% stake comprising 1.5 million PRMH shares and all its redeemable preference shares (RPS) comprising one class A RPS and one class B RPS.
Additionally, YTL Corp also agreed to pay S$20 million for services to be rendered by Macquarie Bank until the completion of the proposed acquisitions by the first quarter of next year.
PRMH is the holding company of Macquarie Pacific Star Prime REIT Management Ltd, which is the REIT manager of MP REIT, and Macquarie Pacific Star Property Management Ptd Ltd — the property manager of MP REIT’s properties in Singapore. The acquisition of the 50% stake in PRMH will enable YTL Corp to gain control of the REIT.
The acquisitions, which will be funded by proceeds from the US$300 million (RM1.06 billion) five-year guaranteed exchangeable bonds issued by YTL Corp subsidiary YTL Corp Finance (Labuan) Ltd on May 15, 2007, may mark the start of YTL Corp’s shopping spree for attractively priced properties during the current economic downturn.
YTL Corp is currently sitting on a cash pile of over RM11 billion.
Speaking to The Edge Financial Daily yesterday, YTL Corp managing director Tan Sri Francis Yeoh, said: “It is rather rare to get such attractive price for a REIT that owns S$2.2 billion worth of properties.”
He said MP REIT, which will be renamed Starhill Global REIT, would be a vehicle for YTL Corp to establish its presence in Singapore as well as internationally.
“We are always on the lookout for value acquisitions to add to our portfolio, and believe that the combined experience and connectivity of YTL Corp and MP REIT will provide the opportunity and platform to realise greater synergies and create further value for these landmark assets,” said Yeoh.
He added that YTL group’s experience in setting up and managing Starhill REIT would come in handy.
MP REIT is expected to offer an attractive yield of 9.4% based on Bloomberg market consensus on a distribution of 7.7 Singapore cents per unit next year. Its distribution policy is to distribute to unitholders at least 90% of its taxable income.
For the six months ended June 30, MP REIT recorded a net income available for distribution of S$34.2 million while revenue came in at S$60.6 million. Last year, it posted an annual net income available for distribution of S$59 million on revenue of S$103 million.
MP REIT’s asset portfolio now comprises 10 properties in three countries, valued at about S$2.2 billion. Its borrowings amounted to S$655.1 million as at June 30.
It invests primarily in real estate used for retail and office purposes. The listed entity has two landmark properties in Orchard Road, Singapore’s premier shopping and tourist precinct. Its portfolio includes a 74.23% strata title interest in Wisma Atria (Singapore) and a 27.23% strata title interest in Ngee Ann City.
MP REIT also owns seven properties in the prime areas of Roppongi, Shibuya-ku, Minato-ku and Meguro-ku in Tokyo, Japan and a premier retail property in Chengdu, central China.
Upon completion of the acquisition, Yeoh will be appointed as the REIT Manager’s executive chairman.
Other YTL Corp developments in Singapore include the Sandy Island and Lakefront developments, which are part of the Sentosa Cove project, and the Westwood Apartments, situated in Orchard Boulevard, which was acquired in November 2007.
By The Edge Daily
Guan Eng to promote Penang in Korea.
GEORGE TOWN: Penang is marketing itself as an ideal place for second home by setting up a pavilion at the Asia Pacific Tourism Investment Conference and Expo (Aptic) in Seoul, Korea.
Property developers Eastern & Oriental Bhd, SP Setia Bhd, Hunza Properties Bhd, Ideal Property Intelligence Sdn Bhd and the Penang Health Association are among the participants of the Penang Pavilion, whose objective is to promote Penang as an ideal home for Malaysia My Second Home (MM2H) programme.
Participation in the expo is part Penang’s trade and investment promotion mission to Korea from Oct 28 to Nov 1. The mission’s 52-member delegation will be led by Chief Minister Lim Guan Eng. He is scheduled to present a paper at Aptic entitled Sustainable Tourism Development in a Heritage Environment — the Penang Story tomorrow.
Lim is expected to hold business meetings with companies and potential investors from various sectors.
By The Edge Daily
Property developers Eastern & Oriental Bhd, SP Setia Bhd, Hunza Properties Bhd, Ideal Property Intelligence Sdn Bhd and the Penang Health Association are among the participants of the Penang Pavilion, whose objective is to promote Penang as an ideal home for Malaysia My Second Home (MM2H) programme.
Participation in the expo is part Penang’s trade and investment promotion mission to Korea from Oct 28 to Nov 1. The mission’s 52-member delegation will be led by Chief Minister Lim Guan Eng. He is scheduled to present a paper at Aptic entitled Sustainable Tourism Development in a Heritage Environment — the Penang Story tomorrow.
Lim is expected to hold business meetings with companies and potential investors from various sectors.
By The Edge Daily
Wednesday, September 10, 2008
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