AS Felda Investment Corp Sdn Bhd (FIC) solidifies its move into property development by taking control of Encorp Bhd, the group has earmarked three parcels of land to be developed including a 22-acre parcel in Kuala Lumpur.
The land currently houses the Balai Felda, Wisma Felda, Anjung Felda buildings and a handful of other surrounding buildings the Federal Land Development Authority (Felda) owns and has been using for about 45 years. FIC CEO Mohd Zaid Abdul Jalil said Felda intends to redevelop the site, which is outlined by Jalan Semarak, Jalan Maktab and Jalan Gurney in Kuala Lumpur. “We are still in the preliminary planning stage. We have yet to come up with the overall concept and design for the redevelopment,” he tells StarBizWeek. He says this would be a commercial development but the components have not been decided on. Apart from the land in Kuala Lumpur, two other sites include 600 acres in Bukit Katil, Malacca and 2,000 acres in Pengerang, Johor. “Again, we are still conducting our studies on the land and evaluating our options. These areas are primed for growth,” he says, noting that Malacca’s property development has been gaining momentum from its gradual urbanisation while Pengerang has the Refinery and Petrochemicals Integrated Development, or Rapid, factor. However, Zaid denies that the land parcels would be injected into Encorp but do not discount the possibility of the company being roped in to help develop the parcels. “Yes, we may consider bringing Encorp in just as a developer to develop Felda’s assets, if that gives the best returns to the Felda shareholders,” Zaid says, “We are considering all options from the financial and taxation point of views. We have to take into account how to declare dividends under the different structures.” Although FIC is now in the driver seat for Encorp, its 49.45% shareholding means the returns from an asset transferred to Encorp may be diluted, compared to Felda owning the assets completely. The objective of establishing FIC is, after all, to ensure ultimate parent Felda and the settlers get the maximum returns from unlocking the value of its assets. Currently, these assets are held under Felda. Rationalising its investments FIC is in the midst of owning Felda’s hotel assets which is previously held by Felda Travel Sdn Bhd under Felda and Felda Global Ventures Holdings Bhd’s (FGV) rationalisation activities. Felda chairman Tan Sri Mohd Isa Abdul Samad ( pic) says in an interview that FIC’s main mandate is to undertake business activities which are non-plantation related. “And our focus has always been to enter the property development sector.” He is confident that Felda will be a big developer because it has so much land to bank on. “The hotels belong to FIC while the properties are under FGV. There is no conflict at all with FGV, which is our plantation business,
lynli. think you are the only one bought CMSB. you not suitable to play contra. give you one counter later if you can hold 2/3 months. let me know if you able too. going for lunch after morning meeting.
kytan...u posted some buy calls sometime back. One of them is Tongherr. Lately, the directors are buying back a lot of this stock. Any idea of what is going on?
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Posted by hepitrade > 2014-01-02 18:04 | Report Abuse
What say you, bro & sis ?