Sathu Terraces embrace the contemporary tropical style which is full of warm, serene vitality. Simple yet elegant, the minimalist concept is clearly showcased in the clean, neat lines being both modern and spacious.

It features a car porch that is spacious enough to park two cars. With a roofed balcony that provides additional shading for the master bedroom. In addition, the backyard is connected with the common park, thereby negate the need for children to cross thoroughfare.

With 182 units, Sathu Terraces is built with cycling tracks to encourage a low carbon lifestyle, enabling you to enjoy the surrounding lush landscape while taking a ride on your bicycle.

Location : One Residence, Sungai Ara, Penang
Property Type : 2-Storey Terrace
Land Tenure : Freehold
Total Units: 182
Developer : Ideal Property

EASTERN & Oriental Bhd (E&O) (3417) says its unbilled property sales as at September 30 have surpassed peak levels recorded in the year ended March 2008.

E&O, listed on Bursa Malaysia's main board, locked in unbilled property sales of RM604.8 million during the period compared to RM203.7 million registered as at March 31 2008.

This was due to stronger buying sentiments in the high-end segment where it has a niche, the company said in a statement yesterday.

This helped E&O to achieve a net profit of RM17.9 million for the six-month period to September this year, matching the performance of a year ago.
E&O executive director Eric Chan said the profit from its strong unbilled sales position will provide a robust base for an enhanced future performance.

"In addition to this, the recent reopening of Lone Pine Hotel, E&O's boutique resort at Batu Ferringhi, and the upcoming launch of Straits Quay, Penang's first seafront retail mall, are expected to positively impact the group upon achieving targeted operational levels."

Chan said E&O was on a strong platform to capitalise on future growth opportunities and is expanding in all segments.

"We are set to execute a portfolio of current and near-future projects with a total GDV (gross development value) of RM4 billion," he added.

E&O is positive about its hospitality arm, spearheaded by its two heritage hotels in Penang, the E&O Hotel and Lone Pine Hotel.

The company has recently increased its stake in The Delicious Group to 100 per cent and is embarking on an expansion drive locally and regionally.

Plans are under way to strengthen the brand presence of the F&B chain, which currently operates seven outlets in Kuala Lumpur.

SOURCE: Business Times

PETALING JAYA: After nearly 30 years, Malaysian Resources Corp Bhd (MRCB) is poised to join the “premier league” of the property development sector via its proposed merger with IJM Land Bhd.

The company started in 1969, under the name Perak Carbide Sdn Bhd, with its core activity of carbide manufacturing. In 1981, it became known as MRCB, following a major shift in operational interests to property development and investment.

To recap, the government-linked company, with Employees Provident Fund (EPF) holding in excess of 40% stake, announced that it would team up with IJM Land under a newly incorporated company (Newco). The proposal will involve a share swap of MRCB and IJM Land with new shares in Newco.

Newco is expected to take over the listing status of both company in the second half of next year with implied market capitalisation of RM7bil and net asset of over RM3bil where it will emerge as the second-largest property developer in the exchange.

It was largely reported that it would be a synergistic merger given the different strengths of MRCB and IJM Land in the property market segments.

So, what does MRCB bring to the merger with IJM Land?

According to OSK Research, MRCB’s activities are mostly in the commercial sector and heavily concentrated in the Klang Valley, with its flagship project KL Sentral with gross development value (GDV) of about RM12bil.

“Its major shareholder, the EPF, is to undertake the development of the prized Rubber Research Institute (RRI) land in Sungai Buloh where we believed the merged entity may be the frontrunner to undertake the project on behalf of EPF,” it said.

This announcement was made in Budget 2011, whereby the project would involve mixed development comprising affordable houses as well as commercial, industrial and infrastructure facilities. The entire development is estimated at RM10bil and is expected to be completed by 2025.

IJM Land, on the other hand, is more focused on township and residential developments in the Klang Valley, Penang, Johor, Negri Sembilan, Sabah and Sarawak with remaining landbank of 6,637 acres and remaining GDV of about RM22.85bil.

This landbank of IJM Land would complement the merger, as according to Kenanga Research, post-completion of KL Sentral, MRCB might not have another equally strategically located landbank and would only be counting on securing a role in EPF’s RRI land development to have a significant new earnings stream.

OSK Research also believed the proposed merger might have been initiated by EPF as part of its efforts to consolidate its property exposure as well as to establish its own sizeable property arm.

Besides MRCB, EPF is also a common and significant shareholder in IJM Corp Bhd and IJM Land.

“This, we believe, will enhance EPF’s capability to achieve its goal of increasing its exposure in the property market as part of its investment diversification strategy,” it said.

The EPF was recently quoted on the merging of IJM Land and MRCB as saying it would first have to evaluate the proposal before deciding on its position.

Based on current information, the EPF is slated to be the second-largest shareholder in Newco after IJM Corp, as the details of the new management structure has yet to be revealed.

On the offer price of RM2.30 per MRCB share on the merger share in Newco compared to RM3.65 per share for IJM Land, OSK Research said it’s a fair offer price but not that attractive.

“The RM2.30 offer price for MRCB offers only a 7% and 12.2% upside from the last closing price (before the merger announcement) and our previous fair value respectively.

“As such, we view the offer price as somewhat fair, and yet not that attractive, owing to the rather limited premium or upside,” it said.

Going forward, although Newco is expected to enter the “premium league” of property sector, the other players in the league are also stepping up in terms of size and capabilities apparent in the current trend of mergers and acquisition in the industry.

On Nov 4, UEM Land Bhd has proposed a merger with Sunrise Bhd, while last week Sunway Holdings Bhd and Sunway City Bhd received a takeover offer from Sunway Sdn Bhd for RM4.5bil in cash-and-share swap.

Thus, although the merger between MRCB and IJM Land is expected to create a giant in the sector next year, Newco is not alone in the battlefield as the other contenders would be equally strong.

SOURCE: The Star

GEORGE TOWN: The RM2.7bil Penang Sentral project in Butterworth is expected to generate economic spill-over effects of about RM8bil when the entire project is completed 10 years from now.

Malaysian Resources Corp Bhd (MRCB) executive director Datuk Ahmad Zaki Zahid said at a press conference that work on the first phase, comprising an integrated transportation hub with a retail component, would start next month.

The first phase, estimated to have a gross development value of at least RM400mil, is scheduled for completion by Dec 2013.

“Work on the second phase is expected to start even before the completion of the first phase,” he said. “Work on the third and final phase is expected to start five years from now.”

The second and third phases are commercial components, comprising a commercial hub, including office towers, serviced apartments, a hotel and waterfront amenities, scheduled for completion 10 years from now.

Zaki spoke after the Land Public Transport Commission chairman Tan Sri Syed Hamid Albar launched the Rapid Penang I Planner logo.

In May this year, MRCB Utama Sdn Bhd project manager (project/property) Zamri Mat Zain had said that the first phase would miss the July 2011 completion deadline due to delays in land acquisition.

Zaki said construction of the first phase was likely to generate some 2,500 jobs. “By the time the entire project is completed, some 15,000 jobs would be created, generating an economic spillover effect of about RM8bil,” he said.

Ahmad Zaki added that the gross development value of RM2.7bil was a conservative figure, which was likely to increase next year.

The Penang Sentral project, developed by MRCB in partnership with Pelaburan Hartanah Bumiputera Bhd, is part of the Northern Corridor Economic Region initiative.

The two companies formed a joint-venture firm, called Penang Sentral Sdn Bhd, which would undertake the development of the transport and commercial hub.

MRCB Selborn Corp Sdn Bhd, a subsidiary of MRCB, has been appointed to manage the development, design, construction, completion and maintenance of Penang Sentral.

The transport hub is expected to cater to approximately 65 million passengers a year.

Meanwhile, LPTC chief executive officer Mohd Nur Ismal Kamal said that the commission would next month start to finalise the public transport policy for the country.

“It will take nine months to finalise the policy, as the LPTC needs to assess the data collected from all over the country on the needs for public transportation in different towns and cities,” he said.

“We will then know what kind of public transport programme is needed for which towns and cities in the country,” he said.

SOURCE: The Star

THE entity that will emerge from the proposed merger between IJM Land Bhd and Malaysian Resources Corp Bhd (MRCB) will be a mega property owner and developer with an implied market value of RM7 billion.

IJM Land chairman, Datuk Krishnan Tan Boon Seng, said the entity was also expected to expand its presence not only in Malaysia but also in the region.

He said the creation of a leading listed property development entity would provide a platform for both parties to tap each other's strengths and capabilities.

"The proposed merger is also expected to provide an opportunity for both entities in terms of product offerings, land bank, management expertise and regional expansion plans," he told reporters after signing the memorandum of understanding with MRCB on the merger today.

Tan said the merged entity would benefit from better project management practices which were expected to give rise to improved operational efficiencies and economies of scale.

"By leveraging on each other’s core competencies, over time, the value of the merged entity can be further enhanced through the adoption of best practices currently being practised by IJM Land and MRCB respectively," he said.

Meanwhile, MRCB chief executive officer, Mohamed Razeek Hussain, said the merged entity would also be well-placed to pursue strategies that could propel its future growth on the back of a combined net assets in excess of RM3 billion.

"With the significant increase in size, the merged group will be able to further strengthen its market leadership in the commercial and residential segments of the property market and compete more effectively in both the local and international markets," he said.

The proposed merger was expected to be finalised within three weeks, Tan said.

Mohamed Razeek said the merged group was expected to have a combined landbank of over 3,600 hectares with presence in the Klang Valley, Penang, Johor, Perak, Negeri Sembilan, Sabah and Sarawak.

The principal activity of IJM Land is investment holding while its units are involved in property development, construction, hotel operations and investment holding while MRCB is engaged in construction-related activities, infrastructure, property development and investment and provision of management services to its subsidiaries.

In a filing to Bursa Malaysia, the companies said the proposed merger would be implemented through a scheme of arrangement under Section 176 of the Act.

For the purpose of the scheme of arrangement, a newly-incorporated company would be formed (newco) to facilitate the proposed merger.

The shares in IJM Land and MRCB will be exchanged for securities in newco or a combination of shares in newco and cash.

The exchange will be based on RM3.65 per share in IJM Land and RM2.30 per share in MRCB.

The newco is to be admitted to the Official List of Bursa Securities upon completion of the proposed merger, in place of IJM Land and MRCB.

The proposed merger is subjected to approvals from the boards of directors of IJM Land and MRCB, shareholders of both companies and the relevant authorities.

RHB Investment Bank and Newfields Advisors have been appointed joint advisers to both the companies. — Bernama

SOURCE: Business Times