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

KUALA LUMPUR: Mah Sing Group Bhd will undertake a gated-and-guarded resort-style development in Batu Feringghi, Penang, with a gross development value (GDV) of about RM800 million, it said in a statement on Tuesday, Nov 23.

The project – Ferringhi Residence@Penang – will be developed on a 61.03-acre freehold tract to be acquired by the group's unit Uptrend Housing Development Sdn Bhd for RM157.3 million cash or about RM59.17 psf.

The subsidiary had entered into a sale and purchase agreement (SPA) on Tuesday.

Ferringhi Residence@Penang's early plans indicate that the project will consist of semi-detached homes with a built-up of about 3,000 sq ft priced from RM1.4 million and bungalows with a built-up of 4,200 sq ft priced from RM2.2 million.

The project will also feature condominiums with units indicatively ranging from 850 sq ft to 1,800 sq ft, priced at RM480 psf.

The pricing of the abovementioned properties are indicative.

Mah Sing said the project will be located in the middle of tourism hub Batu Feringghi, which is close to the beach and 20km away from the centre of state capital Georgetown.

According to the group, the land has already been converted for residential use and the development plan has been obtained for landed development, while the main access road is ready and the external infrastructure substantially completed.

Earthworks for part of the land have also begun, allowing fast turnaround of the project, it added.

Group managing director Tan Sri Leong Hoy Kum said: "Batu Ferringhi is a renowned tourist belt in Penang island and is sought after by home owners and investors as it is the perfect getaway from the city's hustle and bustle."

He added that the group will ride on its strong branding in Penang, where it already has four other projects namely Residence@Southbay, Legenda@Southbay, Southbay City and Icon Residence@Georgetown.


SOURCE: The Edge Property

KUALA LUMPUR: Atlan Holdings Bhd (AHB) has proposed to sell seven land parcels in Penang for RM145 million cash, resulting in a net gain on disposal of RM80 million or 33 sen per share for the financial year ending Feb 29, 2012, it announced to Bursa Malaysia on Friday, Nov 19.

The group – via its units Blossom Time Sdn Bhd (BTSB) and Radiant Ranch Sdn Bhd (RRSB) – has entered into two separate sale and purchase agreements (SPA) with Utara Malaya Realty Sdn Bhd (URSB).

The parcels in question are six pieces of freehold land measuring a total of about 43.95 acres that belong to BTSB as well as one 17.1-acre plot of land owned by RRSB.

Four of the parcels owned by BTSB have been partially developed, it said.

BTSB has started work on The Residences@Ferringhi Park (Phase 1) and gated and guarded residences Tropika Feringghi (Phases 2 and 3).

Phase 1, which was completed in 2008, comprises 54 units of three-storey semi-detached homes and three units of three-storey bungalows.

Meanwhile, BTSB has obtained overall planning for Phase 2 on Jan 12 this year, and a business financing-i facility totaling RM70 million was obtained from a financial institution, of which RM30 million was drawn down to part-finance the development cost of phase two.

Phase 2B comprises 50 units of three-storey bungalows with an estimated gross development value (GDV) of RM179.1 million and a gross development profit (GDP) of RM70.4 million, while phase 2C is expected to comprise 45 units of thee-storey bungalows with a GDV of RM168.2 million and a GDP of RM55.6 million. Phase 2A is not part of the disposal.

The phases are expected to begin in 2011 and the duration of the project is estimated at five years.

The group said it will use RM125 million from the disposal proceeds to repay bank borrowings and reduce its interest expense, thereby boosting its earnings per share to 33 sen.


SOURCE: The Edge Property

PENANG Bridge will be closed to all traffic between 1am and 10am this Sunday in conjunction with the Penang Bridge International Marathon.

The closure also includes the access road leading to Penang Bridge Sdn Bhd (PBSB) office from the North-South Expressway and routes leading to the toll plaza from Seberang Jaya and the Prai Industrial Area on the mainland.

The Prai-bound stretch on the island from the Tunku Kudin roundabout, Faraday Road, Georgetown/Jelutong and Sungai Nibong heading towards the bridge will also be closed.

PBSB said in a statement that some 100 people would be deployed to direct the traffic during the marathon.

The public are advised to plan their journey early and adhere to the traffic advisory, road signs and Variable Message Sign to avoid disruptions.

The public can also call Bridgeline at 1300-1300-03 or SMS PBSB online traffic information system for real time traffic updates on the Penang bridge. The marathon, one of the state’s annual events which attract foreign participation, has been held since 1985.

SOURCE: The Star

GEORGE TOWN: Penang Gerakan plans to address the issue of affordable housing in Penang since the present prices are beyond the reach of many local residents.

State chairman Datuk Dr Teng Hock Nan said yesterday most of the property prices in Penang were now beyond the means of many middle-income wage earners.

“If one is to earn RM3,000, it is difficult for them to own a proper home,” he said when announcing the party revamped line-up of its bureaus at the state Gerakan headquarters yesterday.

Former Kebun Bunga assemblyman Quah Kooi Heong has been appointed to head the Housing bureau.

Dr Teng believes that the state government has not built any low-cost housing for the past two years.

“Our request for low-cost housing plans that were approved has not drawn any response from the state,” he said.

He also said Local Government bureau under Teh Leong Meng would also be monitoring the proposed move by the state to introduce local government elections.

Dr Teng also said the new Environment bureau headed by Tan Chai Liang would look into development plans for Penang Hill and the development of hill land and coastal seaside.

He said under the Yayasan Majudiri bureau headed by N. Gobalakrishnan, the party had identified eight Tamil schools in the state to be given assistance so they could run kindergartens.

Former Datuk Keramat assemblyman Ong Thean Lye will head the General Election Task Force, Dr Thor Teong Gee will head the Publicity, Information and Communication bureau while Rowena Yam will take charge of the Political Training bureau.

Others appointed are Mark Ooi (Education), Micheah Heah Theng Hwang (Economy & SME), Baljit Singh (Legal and Human Rights), Tan King Chee (Veterans), Dr Kiew Hen Chong and Teow Jit Meng (Public Complaint), Lau May Ling (Public Accounts) and Yew Khean Siang with Ng Boon Theng (Welfare).

SOURCE: The Star