Eastern & Oriental Bhd (Dec 1, RM1.41)
Maintain outperform at RM1.39 with revised target price of RM2 (from RM1.98): Although annualised 1HFY12 core net profit was only 30% of our forecast, it is in line as future quarters should be stronger. We make no change to our target basis of 30% realisable net asset value (RNAV) discount or "outperform" call.

But we adjust our target, RNAV and earnings per share for housekeeping and ICSLS conversion.

E&O sold RM380 million worth of properties during 1HFY12, 52% more than its RM250 million sales in 1HFY11. Unbilled sales leaped from RM650 million a year ago to RM880 million. The bulk of 1HFY12 sales came from Penang, with the remainder coming from unsold units of St Mary Residences in Kuala Lumpur. As expected, E&O did not propose a 2Q dividend, in line with last year's practice and our expectations.

Take-up rates for both the St Mary Residences and Phase 1 of the Penang Quayside condos have reached 80%. Phase 2 of the Penang condos will be launched this month and indications are that demand should be strong.

Although minority shareholders may be disappointed that there was no general offer, we view positively the recent emergence of Sime Darby Bhd as a 30% shareholder of E&O. This provides E&O with a strong parent which could come in handy for the upcoming Phase 2 of Seri Tanjung Pinang. Also, we would not discount the possibility of joint ventures between the two companies as Sime Darby has 37,000 acres of undeveloped land with an estimated gross development value of RM100 billion. E&O's expertise in high-end residential projects will provide a good fit with Sime, especially for its landbank in the Klang Valley. – CIMB Research, Dec 1

SOURCE: The Edge Property

Raffles Residence 199, another residential development by BSG property located along Jalan Bukit Gambier within the established township of Gelugor, Penang. This development comprises 199 units of 3-storey terrace houses and it is within 10 minutes drive to Penang Bridge.

Property Project : Raffles Residence 199
Location : Gelugor, Penang
Property Type : 3-storey Terrace House
Tenure : Freehold
Total Units : 199
Developer : BSG Property

Location Map

Raffel Tower, 29-storey prestigious condominium built within Bukit Gambier, Gelugor. True essence of luxury 260 elite residences with only five units per floor, picture-perfect scenes abound wtih  sea view and hill view.

Property Project : Raffel Tower (formerly known as Raffles Tower)
Location : Gelugor, Penang
Property Type : Condominium
Tenure : Freehold
Total Units : 260
Built-up Area: 1,400 sq. ft. onwards
Indicative Price: RM700 psf. onwards
Developer : BSG Property

Location Map

GEORGE TOWN: A deal for a developer to redevelop one of the state’s oldest landmarks on Penang Hill — Crag Hotel — appears to have stalled, due to an alleged exclusion of surrounding properties in the hotel’s vicinity.

Business Times has learnt that although Sri Nisuh Sdn Bhd had been initially promised several bungalows adjacent to the historic hotel when the contract was discussed, the said bungalows did not find their way into a draft agreement.

“Three bungalows adjacent to Crag Hotel were promised to be integrated into a memorandum of understanding between the Penang authorities and developer,” a source said.

“However, the said properties were excluded by the State Secretary in the draft agreement.”

In May, the state government announced that Amanresorts International Pte Ltd will run the famous Crag Hotel on Penang Hill, which was one of the earliest hilltop homes and later turned into a hotel in 1929.

The hotel has been in a neglected and derelict state since 1977 after the International School of Penang (better known as Uplands School) vacated the premises and moved to George Town.

The project was reported to have been awarded in April to Sri Nisuh Sdn Bhd and the company was said to be investing US$12 million (RM38.04 million) to finance the project, which was to be completed within 30 to 36 months.

Chief Minister Lim Guan Eng was quoted at the end of May as saying that redevelopment project will take off after an agreement is inked between the developer and the state government two weeks after he made the announcement.

He said the Aman Group would be awarded a long-term contract tenure by the state to manage the property.

Three months ago, Amanresorts’ media communications manager Anjali Nihalchand said that the firm would be forwarding its proposal to the state’s Chief Minister Incorporated on September 5 for final approval.

When contacted yesterday to enquire on the status of the approval sought from the state authorities, Anjali said in an email that there were no current updates as “this is still at its very early stage and we have not got anything further to share at the moment”.

Meanwhile, state-owned Penang Hill Corp director Datuk Lee Kah Choon did not comment on whether approval had been granted as yet to the developer of the proposed project. “This is a state project,” he said in a SMS reply, “and you may wish to check with the State Secretary’s office.”

State Seccretary Datuk Fariz Darus did not respond to an email enquiry from Business Times.

SOURCE: Business Times

Malaysian Resources Corp, a property and construction group, rose to a two-week high in Kuala Lumpur trading after it won a RM40.3 million contract to carry out coastal protection works in Penang.

The stock climbed 2.6 percent to RM1.99 at 9:05 a.m., set for its highest close since Nov. 17. — Bloomberg

SOURCE: Business Times