Mah Sing Group Bhd has surpassed its 2011 full year sales target of RM2 billion by achieving RM2.04 billion sales as at Nov 15, 2011.

The property developer also has very strong earnings visibility with unbilled sales of RM2.14 billion as at Sept 30, 2011.

"This is more than two times the revenue we recognised from property development for the whole financial year 2010," Group Managing Director/Group Chief Executive Tan Sri Leong Hoy Kum said in a statement today.

"We have met and exceeded market expectations on both sales and financial performance, and we shall continue to outperform market expectations by riding on our strong branding, good concepts and design as well as right products," he said.

For first nine months of 2011, the group recorded a 42 per cent increase in revenue to RM1.1 billion and a 47 per cent jump in net profit to RM127.5 million.

For the third quarter, its revenue rose 48 per cent to RM420.7 million while net profit grew 46 per cent to RM43.2 million.

Revenue and profit for the financial period are attributable to property development activities carried out in Kuala Lumpur, Klang Valley, Penang Island and Johor Baharu.

The strong sales achieved and timely execution provide steady cashflow and liquidity to the group’s balance sheets which remain healthy with net gearing ratio at 0.38 times as at Sept 30, 2011.

"Our net gearing has gone up from 0.21 times as at June 30, 2011 as our construction works are moving full swing in tandem with our strong sales," Leong said.

With its cash pile of close to RM600 million and the management’s target to maintain an optimal gearing level of 0.5 times, the group has a healthy warchest which will allow it to continue acquiring prime land or joint ventures for its aggressive expansion strategy.

With 36 projects in its portfolio, the group's unbilled locked in sales and remaining gross development value (GDV) is estimated at more than RM15 billion which should last the group five to seven years.

As for next year, the group’s launch pipeline in 2012 will include several projects offering residential and commercial properties in the range of RM500,000 onwards.

This would include new phases in existing projects like Icon City (Petaling Jaya), M City (Jalan Ampang), and Garden Plaza (Cyberjaya) as well as new projects like M Sentral (Kuala Lumpur) and M Residence@Rawang.

"We have set a sales target of RM2.5 billion for 2012, and we are optimistic that we can continue our strong sales momentum as our products cater to market needs and are well sited in strategic locations," said Leong. — Bernama

SOURCE: Business Times

PETALING JAYA: Steeped in history, Penang is famous for its food and heritage. But if there’s one thing most Penangites want to address, that will surely be its maddening traffic snarls on its congested roads.

George Town’s colonial narrow roads and single direction lanes are now unable to keep up with modern times and coupled with ever-increasing vehicles on the roads, motorists are faced with traffic woes daily, stuck in their cars along the jammed roads to reach their so close yet so far destination.

The solution is to improve the island’s antiquated road infrastructure and the Penang state government has mooted the idea of a RM8bil land swap for infrastructure deal.

The land-for-road deal calls for three bypass highways and a sea tunnel linking the island to the mainland to be constructed by 2020. It’s a game changer the state needs to give it a fresh breath of life. The mega project will be the state’s biggest infrastructure project yet and is meant to solve the island’s severe congestion problems.

The proposed traffic alleviation projects are a 6.5km sea tunnel connecting Gurney Drive to the northern side of Butterworth, a 4.2km road from Gurney Drive to the Tun Dr Lim Chong Eu expressway bypassing the city centre, a 4.6km road linking Bandar Baru Air Itam to the same expressway and a 12km dual-carriage road from Tanjung Bungah to Teluk Bahang to pair with the existing coastal road.

Interestingly, besides the four mentioned tunnel and traffic by-pass projects, there are also plans for transit corridors for light rail transit.

The kicker in the land-for-road swap is that the state government will not have to pay money to build the roads. In return, contractors who undertake the projects will receive prime land which will likely jump in value after the projects are completed.

For the contractors, its more than that. They are even entitled to propose the implementation of toll payments to recover their costs of building the infrastructure.

Responding to queries from StarBizWeek, the chief minister’s office said the state government inherited a concession agreement awarded to Eastern and Oriental Bhd that allows the reclamation of 740 acres off the coast of Gurney Drive and Tanjong Pinang, which is part of the Sri Tanjong Pinang project.

“Hence, we are using this opportunity to swap some of the reclaimed land approved by the previous state government in exchange for infrastructure projects that will benefit the people of Penang. For a state government with little source of revenue, this is our only way to make a difference for the benefit of Penangites. Has it not been said that when the eggs are broken, make an omelette? We are making the best out of a potentially difficult situation,” the chief minister’s office said.

By giving an open invitation to interested parties, domestic and international players are encouraged to participate and several foreign giants apart from China’s Beijing Urban Construction Group (BUCG), namely Citic Group of China, South Korea’s SK Group, as well as a couple of Japanese conglomerates and a Singapore company have expressed interest to bid for the said RM8bil worth of infrastructure jobs.

Analysts are also bullish about the development.

CIMB analyst Sharizan Rosely said in a report that although the proposed new infrastructure projects in Penang are not entirely new, the 2015 timing of their implementation is a surprise and a long-term positive.

“We think that the projects will be attractive to existing contractors and developers in the state. Within our coverage, IJM Corp and Malaysian Resources Corp Bhd are among those that already have exposure to Penang,” he said.

He said payment via a land swap would provide a good opportunity for interested companies to own land.

He expected more visibility on the potential contenders and project infrastructure in the coming months, adding that this could just be the catalyst for the construction sector, on top of the implementation of existing mega jobs such as the Klang Valley’s My Rapid Transit.

With a pre-qualification exercise issued, works looked set to commence by 2015, but whenever there are new developments, benefits and disadvantages of these projects must be weighed carefully by the executors of the said projects.

The construction of the said projects might be beneficial for the state, but there are sacrifices such as a possibility of jeopardising the marine ecosystem of the state and affect the income of those who lived off the sea.

The macro-economic impact of the projects must be evaluated carefully as well, of which the prime land are said to triple in value after the projects take place, and in turn this might eventually drive up prices of commercial and residential properties even more in the already land scarce island. Towards this end, the state government had set up the Penang Housing Board aimed at building affordable housing in the state, largely modelled after the Singapore Housing Development Board.

SOURCE: The Star

GEORGE TOWN Penang is set to see the entry of yet another five-star resort to meet continued tourist demand.

The RM100 million sea-fronting Jazz Hotel Penang will open its doors by 2015, its operators said.

Full-service hotel management company Ri-Yaz Hotels and Resorts Sdn Bhd will manage the 226-room hotel, located at Tanjung Sri Pinang in Tanjung Tokong.

"Our expansion into Penang is timely, given the growth of the northern region's tourism industry and our projected increase in demand for hotel rooms in Penang," Ri-Yaz's managing director Datuk Shaheen Shah said in Penang yesterday, after the company signed an agreement with Sure Commerce Sdn Bhd.

Under the agreement, Sure Commerce will develop the Jazz Hotel Penang, comprising two towers which will be made up of the 30-storey hotel, along with service suites in the adjoining 45-storey tower.

Witnessing the signing of the agreement at the Eastern and Oriental Hotel were Yang diPertua Negeri Tun Hamdan Abdul Abbas and Emkay Group chairman Tan Sri Mustapha Kamal Abu Bakar.

"We purchased a 0.91 ha piece of land close to Tesco from Koperasi Gabungan Negeri Pulau Pinang," Sure Commerce's managing director Todd SB Teoh said in an interview.

He said the Ri-Yaz group was chosen based on its proven record in managing boutique hotels in key tourism markets.

Meanwhile, Shaheen said the group will draw from its experience in managing leisure properties in Malaysia like the Cyberview Resort and Spa in Cyberjaya, Ri-Yaz Heritage Marina Resort and Spa in Terengganu and Belum Rainforest Resort in Perak.

Internationally, Ri-Yaz also manages the Pure Villas in Canggu Bali, Indonesia.

"Over the next three years, we are looking to expand our footprint by investing and managing properties in Tuaran, Sabah, Langkawi and Kuala Lumpur," Shaheen said.

"The Jazz Hotel Penang," he noted, "will be positioned as a trendy chic hotel, where the latest technology will be showcased, and where jazz music and art pieces will enhance the hotel's contemporary design."

Also included in the design for the new hotel, are a sea-fronting roof-top pool, along with a glassed-ballroom.

SOURCE: Business Times

PENANG’S property offerings have a far-reaching appeal, as reflected by a group from France who visited the 1Tanjong luxury condominium project in Tanjung Bungah.

The French Teochew delegation, numbering around a dozen people, were in town for the 16th International Teochew Convention at the Penang Teochew Association.

They decided to check out the development by Province Valley Sdn Bhd, a member of the Lone Pine Group of Companies, for potential personal investments, according to its general manager Mabel Ooi.

“We are indeed honoured to have visitors from overseas,” she said.

The delegation later visited tourist sites including the Kek Lok Si Temple, the Sleeping Buddha, Han Chiang College, Sun Yat Sen Memorial, Esplanade and Khoo Kongsi landmark before leaving for home on Nov 5.

The 1Tanjong project along Jalan Tanjung Bungah, comprises two 41-storey towers overlooking a central podium with rooftop facilities.

Comprising only two units per floor and two private lifts opening to private lobbies, it is touted as the first condominium in Penang to have vertical landscaping.

Typical units are 4,760sq ft, penthouses are 9.600sq ft and those units on the top are 18,600sq ft .

SOURCE: The Star

VISITORS to the first ever Penimex Lifestyle Expo at the Penang International Sports Arena in Relau can check out various local and foreign products.

The four-day exposition features fashion, food, living and travelling services at over 110 booths.

Organising chairman Sam Yong Sum Chin said that the expo provided an opportunity for Penang Importers and Exporters Association members to display their local and imported wares.

?It is also to create an awareness about the products to consumers,? he said during the launching of the event on Thursday. The event ends tomorrow.

He added that more than 25,000 visitors were expected to throng the event.

Chief Minister Lim Guan Eng was present to launch the expo.

Furniture Arts (M) Sdn Bhd won the Best Booth Design Award.

Among the visitors at the expo was sales executive Sally Lim, 29, who was buying carpets at one of the booths.

She said that she went the expo to survey the products and their prices as she was planning to move into a new home.

?I?ve only walked half a round here. Some of the items are reasonably priced while for some others, I would need to think first before buying,? she said, adding that she was also looking for electronic goods.

The products and services available at the expo are (fashion) clothes, jewellery, accessories; (food) fruits, fruit juice products, instant food, halal food, medicine and health care products; (living) furniture, home decor, kitchen cabinets, carpets, floorboards, hardware, electrical and electronic products and sports equipment and (travelling) property, travel packages, travelling equipment and bicycles.

SOURCE: The Star