DIJAYA Corp Bhd will buy assets worth RM1.1 billion owned by its major shareholder, Tan Sri Danny Tan Chee Sing, under a consolidation exercise to spur its growth.

The exercise is specifically aimed at streamlining and rationalising a majority of land and properties held by Tan into Dijaya.

Both parties entered into a conditional amalgamation exercise agreement yesterday.

Under the deal, Dijaya will acquire 73 properties, including 24ha of land in Kuala Lumpur, Penang, Johor and Sabah, and investment assets held by Tan, excluding the liabilities incurred by these properties, for RM948.7 million.

The deal is expected to conclude by September this year.

Tan said the assets would give Dijaya good recurring income of eight per cent per annum.

The assets include Dijaya Plaza in Kuala Lumpur, Casa Square in Puchong, Intan Square in Petaling Jaya, Jaya Square in Subang and Wisma TT in Bandar Sunway.

The land acquisition, meanwhile, will increase Dijaya's land bank to 348ha, generating a gross development value of RM37 billion over the next 12 to 15 years.

Dijaya managing director Datuk Tong Kien Onn said the deal would benefit the company over the long term as all the assets would help improve its financial figures.

The exercise, upon completion, will increase Dijaya's market capitalisation to over RM1 billion at a price of RM1.50 per share. This will make the company one of the largest property developers on the Main Market of Bursa Malaysia.

The acquisition will be satisfied by RM250 million cash and the balance via the issuance of redeemable convertible unsecured loan stocks (RCULS), with a staggered conversion price range of RM1.30 to RM2.50 over a 10-year period.

As an integral part of the deal, Dijaya will undertake an equity fund raising exercise via a renounceable rights issue of up to 491.3 million new shares of RM1 each at an issue price of RM1.20 per rights share, together with a bonus issue of up to 122.83 million new RM1 shares.

Tan and the parties related to him will provide Dijaya with undertakings to subscribe for RM250 million in value pursuant to the proposed rights issue, which will constitute the minimum subscription level for the proposed rights issue.

Dijaya has also proposed a debt funding via the issuance of up to RM500 million guaranteed commercial paper/medium term notes programme (CP/MTN) with an option to issue detachable warrants to further meet the business investments and long-term capital requirement of the group.

In view of the proposed amalgamation exercise, Dijaya has cancelled its proposed private placement as announced on August 18 last year to mitigate any further dilution of shareholdings in the company.

SOURCE: Business Times

PETALING JAYA: Property developers and consultants from Penang to Johor are generally bullish about the residential property market and do not think there is a bubble.

They are of the view that there are two types of buyers, one who is buying out of need and the other out of fear that prices would go up further. The speculative element which was evident a few years ago has dissipated.

Real Estate and Housing Developers’ Association (Rehda, Penang) chairman Datuk Jerry Chan said: “Buyers have money which they would like to park somewhere.

“Sales this year have been better than last year, driven by fear rather than the speculative element,” said Chan who is also group managing director for Penang-based Asas Dunia Bhd.

Chan was commenting on a report Debunking the property bubble myth by CIMB which said that talk of a property bubble was overstated as the sharp rise in residential property prices over the past few years was confined to selected areas.

“Affordability is near its all-time high and prices have to surge 50% to 100% before affordability falls to pre-Asian financial crisis levels,” the report said.

The report said it was surprising that residential prices had not risen at a faster pace as new supply had fallen significantly over the past few years.

Chan said tourism was also very big in Penang and if China and Indian nationals were to buy in Penang, it would “turn the market upside down.”

“So I foresee Penang prices would continue to rise because of inadequate supply of land, not because of inadequate developments,” he said.

In the Klang Valley, Reapfield Properties Sdn Bhd chief executive officer Gerard Kho said domestic demand for residentials was expected to be strong until the middle of this year.

Managing director for the Khong & Jaffar group of companies Elvin Fernandez said “it is not a question of whether there is a bubble or not but whether prices in certain areas are tied in to fundamentals or not.

“And we know in certain hot spots, they are not,” Fernandez said.

In Johor, KGV International Property Consultants Samuel Tan said the state was undergoing a transition because of the Iskandar Malaysia factor.

“New houses entering the market are priced a lot higher than three years ago but the market is accepting it,” he said.

SOURCE: The Star

City Residence and City Mall, a mixed development by Ivory on a 2.42 arce prime freehold land in Tanjung Tokong.

The commercial segment (City Mall)  will consists of 23 three-storey units ranging from 3,750 sq.ft. to 14,200 sq.ft. Enhanced with tropical style interior design that appeals to the landscape elements, giant palm trees and water features. Its open design ensures abundant natural light, efficiency and flexibility in terms of design and fit-out as well as proper ventilation.

The 202 residential units (City Residence) will feature studio apartments from the 7th to 10th floor as well as typical units and penthouses, ranging from 660 sq.ft. to 5,600 sq.ft. With facilities including a pool, gym room, sauna room, children’s playground and BBQ pit, the two 39-storey towers will appeal to your individuals and couples looking for trendy, cosmopolitan-style home.

City Mall

• No. of Storey : 3
• Total Units : 23
• Built-up Area : 3,750 sq.ft – 14,200 sq.ft

City Residence

• No. of Storey : 39
• Total Units : 202
• Unit Types :
  • Type B3 – 660 sq.ft.
  • Type C3 – 1,120 sq.ft.
  • Type D – 1,700 sq.ft.
  • Type E – 1,230 sq.ft.
  • Type F – 1,830 sq.ft.
  • Penthouse –  up to 5,600 sq.ft.

Location : Tanjung Tokong, Penang
Property Type : Commercial & Luxury Condominium
Tenure : Freehold
Developer : Ivory Properties
Website : www.ivory.com.my

GEORGE TOWN: Ivory Properties Group Bhd is expecting approval from the Penang Development Corporation (PDC) this week for its proposed RM10 billion “Penang World City” project at Bayan Mutiara.

Executive director Murly Manokharan said yesterday the development was expected to incorporate, among others, medical facilities, Grade-A offices and both high-end and affordable housing units.

“We are open to working with strategic partners for certain components of the development, such as a shopping mall and a medical centre, as opposed to seeking investors for an outright sale of chunks of the land,” he told Business Times after the company’s extraordinary general meeting (EGM).

Present was Ivory’s deputy chairman and executive director Datuk Seri Nazir Ariff Mushir Ariff.

During the EGM, which lasted 40 minutes and saw a shareholder turnout of 62 per cent, the company received unanimous approval from those present for its plan to purchase and develop a 41.02ha site in Bayan Mutiara on Penang island, from the PDC and Chief Minister of Penang (Incorporated).

The land was sold for RM1.07 billion, or RM240 per sq ft, to be paid over five years.

Shareholders also gave their nod for a joint-venture between Ivory and Dijaya Corporation Bhd to develop the land, which is located near the Penang Bridge.

After the execution of the Builder Agreement, Tropicana Ivory Sdn Bhd – which is 55-per cent owned by Dijaya and 45 per cent by Ivory – will develop the RM10-billion Penang World City development. The development will be a mixed-use residential and commercial project.

Murly said the master-planned development, which has been crafted by international firm Design 103 International Ltd, would adhere to any height restrictions imposed by the Department of Civil Aviation, owing to the project’s proximity to the Penang International Airport at Bayan Lepas. Any project sited within 15km from the airport is deemed by the DCA to be in the flight path.

Penang World City, he noted, was expected to be completed in eight years, with work on the first phase commencing at the end of this year.

“Now that we have obtained shareholder approval to enter into the joint-venture with Dijaya and also for the proposed rights issue, we are looking at a RM500 million capitalisation and are in a better financial position to carry out the project,” Murly said.

As the principal builder of the project and turnkey contractor, Ivory will manage and develop the entire project, for which it will be entitled for 48 per cent of the gross development value.

“We are currently engaging with both local and foreign investors who may been keen to partner us in certain phases of the proposed development.

“However, our first obligation is to honour whatever outstanding payments which are being owed and we are looking at settling the RM80 million being owed to the PDC by April 10,” Murly added.

PDC and Chief Minister Inc sealed a deal on November 11 last year to sell the land to Penang-based Ivory Properties Group Bhd for RM1.07 billion, or RM240 per sq ft, to be paid up in five years.

Ivory’s chairman and group chief executive officer Datuk Low Eng Hock was quoted last month saying that the company has paid a RM22.1 million deposit for the land and that the remainder will be paid according to the scheduled progress payment after shareholder approval was obtained at the EGM.

SOURCE: Business Times

Carissa Villas, a low-density gated and guarded development by Tambun Indah. Located at Bagan Lallang at the centre of fast growing Raja Uda Township and near to the renowned Chung Ling High School, SRJK Kwang Hwa, wet markets, Sunway Carnival, banks & other amenities.

Its strategic location & established infrastructure provides fast access to the Penang Bridge, Butterworth Outer Ring Road and other major towns like Bukit Mertajam and Juru.

Property Project : Carissa Villas
Location : Bagan Lallang, Butterworth, Penang
Property Type : 3-Storey Terrace
Land Area : 20′ x 61′ onwards
Built-up Area : 20′ x 40′ onwards
Total Units : 48
Indicative Price : RM 628,000 onwards
Tenure : Freehold
Developer : Tambun Indah

Contributed by reader (28/09/2012)

[nggallery id=25]