CapitaLand Malaysia Trust (CLMT) is buying 91.8% of the total strata floor area of retail parcels in Penang’s Queensbay Mall from parties related to CapitaLand Investment Ltd (CLI) for RM990.5 million in a related-party transaction.

The acquisition sum represents a discount of about 1% to the independent valuation of RM1 billion commissioned by CLMT’s trustee MTrustee Bhd.

Taking into account the acquisition fees and expenses, the total acquisition cost is RM1.03 billion and will be funded by a combination of bank borrowings and proceeds from a private placement.

The private placement entails the issuance of up to 1.04 billion new CLMT units to raise gross proceeds of up to RM495.25 million.

CLMT said CLI intends to take up its pro-rata entitlement in the private placement, which will be included as part of the funding for CLMT to acquire Queensbay Mall. As at Nov 3, CLI had a deemed interest of 39.3% in CLMT.

The placees to be identified later may include major unitholders of CLMT, namely the Employees Provident Fund (EPF), Amanah Saham Bumiputera, and Retirement Fund Inc (KWAP).

The acquisition, which is conditional upon the approval of CLMT’s non-interested unitholders at an extraordinary general meeting to be convened at a later date, is expected to be completed by the first quarter of 2023.

In a statement, CapitaLand Malaysia REIT Management Sdn Bhd (CMRM) chairman Lui Chong Chee said that as Malaysia emerges from the pandemic, this is an opportune time for CLMT to expand its portfolio of shopping malls and ride on the recovery of the country’s retail sector.

The acquisition of Queensbay Mall, he said, will deepen CLMT’s presence in Penang, thus strengthening its foothold in the northern region of Malaysia, where it already owns Gurney Plaza and is targeting to complete the acquisition of its first logistics property in Penang in the fourth quarter of this year.

“With a more diversified and resilient portfolio after adding Queensbay Mall and the logistics property, CLMT will be in a stronger position to deliver long-term value to its unitholders,” Lui added.

CMRM chief executive officer Tan Choon Siang said the mall currently receives an average of 1.1 million shoppers every month and shopper traffic is expected to improve further with the return of tourists to Penang.

“The proposed acquisition, our largest since listing, will add meaningful scale to CLMT and reflects our continuing efforts to enhance CLMT’s portfolio resilience and income diversification.

“Queensbay Mall’s property yield of approximately 7.3% is reasonable and will increase the overall property yield of CLMT’s portfolio. The proposed acquisition will contribute positively to CLMT’s earnings and is expected to be yield accretive upon completion,” Tan added.

Upon the acquisition of Queensbay Mall and the logistics property in Sungai Jawi, Penang, CLMT will have seven properties in its enlarged portfolio, with an uplift of 28.2% in assets under management to RM4.9 billion and an increase of 39.7% in net lettable area to 4.3 million sq ft.

CLMT units finished one sen or 1.89% higher at 54 sen on Wednesday (Nov 9), giving the REIT a market capitalisation of RM1.19 billion.

Source: TheEdgeMarkets.com

Proposed serviced residence development by Tah Wah Assets Sdn. Bhd. in Butterworth. Strategically located at the intersection of Butterworth-Kulim Outer Ring Road and Jalan Bagan Ajam, opposite Orange 3 condominium. Being conveniently connected via BORR, it is only a 5 minute’s drive to North-South Expressway and Penang Sentral. Amenities within 2km radius include but are not limited to banks, hypermarket, schools, wet market and popular eateries.

This development will see the construction of three 15-storey towers, to be developed in three phases. Each tower will offer 288 units of serviced residences with four levels of car parking podium and a swimming pool.

The project is still pending approval, more details to be available upon official launch.

Property Project : (to be confirmed)
Location : Butterworth
Property Type : Mixed development
Tenure: (to be confirmed)
Built-up Size: (to be confirmed)
Total Units: 864 (serviced residence), 13 (shop office)
Indicative Price : (to be confirmed)
Developer : Tah Wah Assets Sdn. Bhd.

DISCLAIMER: This article is solely based on research done using publicly available data. This is not an advertisement. Any claim, statistic, quote or other representation about a project or service should be verified with the developer, provider, or party in question.

Acme Holdings Bhd is teaming up with Koperasi Kampung Melayu Balik Pulau Bhd (KKMBPB) to jointly develop seven parcels of land measuring about 178.34 acres in Penang into a multi-phased integrated development.

In a Bursa Malaysia filing, Acme said its wholly owned subsidiary Ayana Bayu Sdn Bhd (ABSB) had entered into a joint venture agreement (JVA) with KKMBPB to jointly develop the land with an estimated minimum gross development value (GDV) of RM1.4 billion.

ABSB is the developer of the said land, while KKMBPB is the land owner. Under the JVA, the development will be on a sharing basis of 83:17 between ABSB and KKMBPB, respectively.

“The developer hereby guarantees that the landowner’s entitlement shall be equivalent in value to the minimum sum of RM210 million only. The landowner’s entitlement may be higher in the event the GDV of the said development on the said land is higher than projected under the JVA,” said Acme.

“Upon handing over vacant possession of the said land to the developer, the developer hereby agrees to compensate the landowner for the loss of income/profit from oil palm cultivation, the sum of RM1 million only yearly to the landowner.

“The amount paid herein shall be treated as part payment of the landowner’s entitlement and shall be deducted from the landowner’s entitlements and it shall be deemed that the developer has fulfilled all its obligations under the terms and conditions of the JVA,” it added.

Upon execution of the JVA, Acme said ABSB also agreed to pay a sum of RM2.5 million to KKMBPB.

“The JVA will enable Acme and its subsidiaries (group) to undertake the said development within the proximity of Penang. The said development could contribute positively to the group’s financial performance in the ordinary course of business going forward,” said Acme.

Shares of Acme settled unchanged at 20.5 sen, with a market capitalisation of RM75 million.

Source: TheEdgeMarkets.com

About Terraces Condominium

A highrise residential development by IJM Land at Bukit Jambul, Penang. Strategically located on 9.32 acres of land next to INTI International College. It comprises a 34-storey condominium tower, featuring 410 residential units with two different design types to choose from.

(Photo taken in Oct 2022)

Find out more about Terraces Condominium

Seven hundred units of affordable housing will be built in the RM113 million Kepala Batas People’s Housing Programme (PPR) in Penang, said Prime Minister Ismail Sabri Yaakob.

Speaking at the PPR’s groundbreaking ceremony on Nov 2, Ismail said the project would help meet the housing needs of the low-income population and was in line with the government’s aim to provide adequate, quality and affordable housing for the country’s growing population.

“The cost of building a unit is RM161,000 but it will be sold at RM45,000 per unit,” said Ismail.

“This means that the subsidy per unit is RM116,000, and the total amount of subsidy borne by the government for this project is RM81.2 million.”

The 700 units, which will be divided into four-storey flats, will be located in an 8ha plot of land owned by the Penang Regional Development Authority (Perda) in Alor Pongsu, Seberang Perai Utara.

Ismail noted that in line with the government’s objective to ensure affordable housing, Budget 2023 allocated RM367 million for new PPR projects for 12,400 residents and RM358 million for the construction of 4,250 housing units under the Program Rumah Mesra Rakyat.

He pointed out that the Housing Credit Guarantee Scheme (SJKP) provides a guarantee of up to RM3 billion to banks to provide access to financing for people without a fixed income to own a house.

He also announced the construction of the Kepala Batas Youth Centre worth RM45 million on a 10.1ha land in Mukim 6, Seberang Perai Utara.

It will be equipped with various facilities including a football field and synthetic track, E-Sport hall, music room, gymnasium, jogging track, skateboard park, dormitory and various other facilities for the youth.

“The centre will provide complete international-standard sports facilities and will also be a one-stop centre for youth activities in the northern region of Peninsular Malaysia,” said Ismail.

“The government hopes that this project can give a boost to the youth who are active in sports and serve as a catalyst for sports excellence.”

Source: FreeMalaysiaToday.com