Property mart to see interest boom from local, foreign parties
KUALA LUMPUR: Malaysia's property market is poised to see interests not only locally but from foreign parties capitalising on the weak ringgit, said global property consultant, Knight Frank Malaysia.
In a statement yesterday, managing director, Sarkunan Subramaniam, said this was evidenced by recent activities in major commercial property investment transactions such as the acquisitions of Integra Tower and DoubleTree by Hilton among others.
"With the Fitch Rating maintaining Malaysia's long-term foreign currency issuer default rating at 'A-' and local currency at 'A' and added with an overall outlook revised from the previous negative rating to stable now, the ringgit is expected to strengthen in the long run and creating the absolute right time for foreign investors to be looking at Malaysia," he said.
He said the company has appointed James Buckley as executive director for Capital Markets.
The appointment indicated the strategic importance of capital markets in Malaysia for the group's business, he said.
Meanwhile, Buckley said, Malaysian corporations were not new to overseas investment, but over the last five years, their investments, particularly in the matured, transparent and accessible markets of the UK and Australia, had continued to rise.
"Knight Frank has advised on over US$3 billion (RM11.4 billion) of investment transactions across Asia-Pacific and US$38 billion of commercial sales and purchases globally over the past 12 months," he said. – Bernama
If u see their profit margin u will get surprise how well they have done. But due to their Share capital is a bit large so the EPS you see is small. But if u compare with other stock you will see which is better and which have better future prospect.
Phase 1 of Foresta is due for completion by March 2016. So L&G is likely to recognize and report fantastically good result again for the current financial year.
Land & General Bhd (L&G) sees its property division as a major profit contributor, with ongoing projects valued at over RM5 billion and a new Seremban project to launch soon.
The ongoing developments include 8trium, a commercial development in Bandar Sri Damansara with a gross development value (GDV) of RM700 million; The Elements, a RM100 million serviced apartments in Ampang; and the Damansara Foresta condominium in Bandar Sri Damansara worth RM700 million, said Low Gay Teck, Managing Director at L&G.
"We also plan to kick-start a gated residential housing project in Seremban in the fourth quarter of this year," said Low.
In addition, he said that L&G is planning to increase its landbank in prime locations in the Selangor, Klang Valley and Johor.
"We are also trying to venture north to Penang as the property prices at these places are good," he said at a briefing on its high-rise condominium project, Damansara Foresta in Bandar Sri Damansara.
While not divulging the current size of its landbank, Low noted finding ideal land is a challenge for L & G.
Of the 928 units, 50 percent was already sold at the Damansara Foresta freehold condominium while 87-89 percent of the 8trium has been sold as of now.
Astoria Ampang is located in Ampang. The developed dimension for the units are among 560.00 sf. Astoria Ampang is actually a freehold property and includes services including BBQ Area, Playground, Swimming Pool, Cycling Path, Jogging Track, Gym, Wading Pool, Pavilion, Games Room, Yoga Room, you might expect from an exclusive residential. Amenities are in brief distances apart for example Oh Jun Hair Salon, Camys3 Touch (Always About Beauty), H & H Mulia Anggun Saloon, Energy Day Spa, LV Vincent Hair and Beauty Saloon, Lanson Place, Gleneagles Intan Medical Centre, KPJ Ampang Puteri Specialist Hospital, Gleneagles Hospital Kuala Lumpur and BCL Marketing Sdn Bhd. In close proximity attributes include Villa Aman, Tiara Ampang, Permai Seri Apartment, ARTE Plus (SOHO), 325 Persiaran Ritchie, Dataran Ukay, Desa Ukay, M City (Retail), M City (Services Apartment), Ampang Point.
Analysis Astoria Ampang has received numerous good responses. Developer is noted for some other projects for example Taman Sri Endah (Apartment), Seri Mutiara, Winner Court A, Taman Greenview (Semi-D), Palm Terrace, Taman Pisang Mas Jaya, SS17 (Apartment), Sea Range Tower, Metro Villa, Starhill (Bungalow).
Astoria Ampang being in a strategic area where by Cash Converters (Ampang Point), 7-eleven @ Jalan Au 2a/17, Kuala Lumpur, 7-Eleven, Great Eastern Mall and Aeon Maxvalu Ampang are common about can make it an effective residence both for self and investment-stay. Occupants need not be worried about food as Haven Cafe - naturally good food, Giant Hypermarket Bandar Baru Ampang (GHBA), De Palma Hotel Ampang, Victoria Station (Jalan Ampang), Las Carretas Ampang, Alexis Bistro & Wine Bar, Mei Keng Fatt Seafood Restaurant, La Risata, Chalet Suisse and Daidomon are in the most effective comfort for them to look for number of dishes.
Astoria Ampang is a neighbour to other exclusive developments for example Villa Aman, Tiara Ampang, Permai Seri Apartment, ARTE Plus (SOHO), 325 Persiaran Ritchie, Dataran Ukay, Desa Ukay, M City (Retail), M City (Services Apartment), Ampang Point. Parents do not need to be concerned as well as educational institutions are comparatively close to, such as International School of Kuala Lumpur Secondary.Astoria Ampang can be accessible via public transport such as Stesen Putra Lrt Dato' Keramat (kj31), Stesen Putra Lrt Setiawangsa (kj33) and Stesen Putra Lrt Jelatek (kj32).
Situated just off Jalan Ampang , Astoria is located at a nexus of road and rail connections. With the vitality and variety around it, Astoria is quite simply the place to be. Connections • The Ampang-KL Elevated Highway ( AKLEH) • The Middle Ring Road 2 (MRR2) • Jalan Tun Razak • SMART Expressway • Maju Expressway (MEX) or KL-Putrjaya Highway • DUKE Highway
I went to Astoria sales office. Not yet launch as they are still waiting for approval. Approval is expected to be in a couple of weeks. Overall, great concept and good location. I believe will sell. Phase 3 MRT expected to be near Ampang Point (exact location has not been finalized) and new access to AKLEH being built.
On the launch date, would be good to see the actual number of units booked/sold.
well astorial GDV ard 900m +. as long as they manage to sellout 50% of it, it will be more than the last FY renenue of 500m+. on top of that, they still have unbilled sales in Damansara Foresta condominium and 8trium
Astoria Ampang is such a good location and good price in klcc area where nearby is above 1000p.s.f but their price is 900p.s.f whereby help buyers create value when they purchase the property from L&G
Hope to have better dividend in future and expect share buy back by company as share too much in the market that will dilute all earning. Unless company get better profit year by year.
L&G PLANS BONUS ISSUE TO REWARD SHAREHOLDERS By theedgeproperty.com | July 14, 2014 5:26 AM MYT
KUALA LUMPUR: Land & General Bhd (L&G) plans to reward its shareholders by issuing bonus shares, likely to be done in the first half of next year, said its chief financial officer KC Ng.
“We do plan on doing a bonus issue, but the structure has yet to be determined,” he told The Edge Financial Daily after a briefing to announce the group’s audited results for the financial year ended March 31, 2014 (FY14) last Friday.
In April last year, the property developer proposed to raise RM77.8 million via a rights issue of irredeemable convertible unsecured loan stocks (Iculs) on a one-for-one basis.
“Our Iculs got listed in September last year, and I think that, including the major shareholders, everyone will go for the conversion of Iculs into shares sometime by September this year. The ruling is that there has to be a moratorium period of six months before embarking on another corporate exercise,” said Ng.
As a result, L&G is unable to undertake a bonus issue for at least six months after the group’s last corporate exercise.
Earlier at the briefing, Ng said L&G aims to increase its market capitalisation to more than RM500 million by the end of the calendar year or FY15, from RM379.16 million as at last Friday.
“Upon full conversion of the Iculs that we issued, we should have a market cap of up to RM658.1 million,” he said.
The group announced bumper results for FY14, with a more than twofold increase in both its revenue and net profit to RM491.9 million and RM128.7 million respectively, from RM216.3 million and RM57.2 million the year before.
As at March 31, 2014, L&G’s cash and cash equivalents stood at RM183.76 million, with total assets of RM742.3 million. It has total borrowings of RM20 million and a gearing ratio of 0.04 times.
L&G also declared a maiden dividend payout of two sen per share for FY14, representing a payout of more than 30% of its net profit.
On the group’s future property launches, L&G managing director Low Gay Teck said the group plans to launch property projects with a total gross development value (GDV) of RM2 billion within the next 12 months.
Three of the projects in the pipeline are due to be launched in the first quarter of next year, namely the Damansara Foresta Phase 2 in Bandar Sri Damansara, Tuanku Jaafar Resort Homes in Seremban and serviced apartments in Jalan Ampang here, next to the group’s current The Elements @ Ampang project.
L&G recently gained shareholders’ approval to purchase the plot of land in Jalan Ampang for RM118.5 million.
Low said the serviced apartment development will comprise four towers with about 1,000 units. Its expected GDV is RM800 million.
Meanwhile, the Damansara Foresta project and the Tuanku Jaafar development will bring a combined GDV of RM1.2 billion to the group. Damansara Foresta will consist of two towers within 42 acres (17ha) of land next to the Bukit Lanjan Forest Reserve, while Tuanku Jaafar Resort Homes will comprise link, semi-detached and cluster homes.
Additionally, L&G has close to 2,500 acres (1,011ha) of estate land in Lembah Beringin, which Low said the group is planning to convert to residential land. Currently, it is planted with oil palm and rubber.
“We are in the midst of drafting out our master layout, and it should hopefully be firmed up by next year,” he said.
Low also said the group was in the midst of disposing of its Hidden Valley Golf & Country Club project in Melbourne, Australia, to interested parties, but not before finishing the construction of the remainder of the 900 bungalow units.
“So far we have sold 830 to 840 units of the 900. The cost of business in Australia is very high, and this project does not contribute much revenue to the group. The cost versus revenue is not justifiable, so we have decided to dispose of this project once we are done,” he said, adding that the group is still scouting for potential acquisitions overseas.
Downside is limited as L&G is a net cash company. Its deposit, cash and bank balance of 398,343,000 translate to 33.5 cents per share. And that is before taking account of other non-current assets (its non-current asset is also greater than its non-current liability). Any price below 42 cents is a good buy.
Alert Alert Alert, as long as our government issue not solved the share and currency will further weak and weak. Good luck for those buy stock now.....
KLSE have a lot of good counter but Malaysia now fall in economy crisis, don't hope it will go up.... Good luck. Now start keep cash on your bank is a right choice. Good luck.
so you buy share when the market goes up? investor buys it when it is cheap.. speculator buys it when it has the uptrend.. it just depends on which one are you.
When the downtrend not coz of company matter, and the fundamental of company still exist, i think we can invest it. But when the downtrend is coz of company (eps, etc), we still hold the share and valuate if the future of company still good for invest or not.
u are wrong, our company won't be bankrupt. Yes I agree depend on profit. But sometime issue like related to country big issue then it more impact rather then your company performance. End up it also drop because no foreign investor like to invest. Normally when after a crisis, I rather focus on blue chips like tenaga, TM, genting, PBB. Usually all those counter will bounce back first after that only follow by second and third counter. But to my opinion, it drop until end of the year. Wait....then......See.....
When most of the shares drop 80% to 90%, u can say it aldy touch bottom. Then it is the time u can consider what stocks to buy. China stocks aldy touch bottom quite sometime except malaysian stocks. Meantime be patient.
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