City&Country: Briefs

IJM Land and MRCB to merge
IJM Land Bhd and Malaysian Resources Corp Bhd (MRCB) have proposed a merger which will create one of the largest property players in the country, with a market capitalisation exceeding RM7 billion and a landbank of over 9,000 acres. The companies entered into a memorandum of understanding on the exercise on Nov 23. The merger will be executed via an exchange of shares for those of the new entity, which will be listed after 2Q2011. The offer prices are RM3.65 per share for IJM Land and RM2.30 per share for MRCB, representing a premium of 18.5% and 7% respectively to the companies’ last traded prices.

The bulk of MRCB’s projects is in the commercial sector of the Klang Valley. Its flagship is KL Sentral, with a gross development value of over RM12 billion.

IJM Land’s most notable project to date is the RM6.5 billion, 152-acre The Light international waterfront project on Penang island’s eastern coastline. It is also undertaking the RM4.5 billion Canal City development in Selangor on a 50:50 basis with Kumpulan Europlus Bhd.

Mah Sing to embark on resort-style project in Batu Ferringhi
Mah Sing Group Bhd is undertaking a gated and guarded resort-style development in Batu Ferringhi, Penang, with a GDV of about RM800 million.

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 entered into a sale and purchase agreement on Nov 23.

The project is expected to consist of semi-detached homes with a built-up of about 3,000 sq ft and bungalows with a built-up of 4,200 sq ft with indicative prices of RM1.4 million and RM2.2 million respectively. The project will also feature condominiums with units indicatively ranging from 850 to 1,800 sq ft and priced at RM480 psf. The development order has been obtained for a landed development while the main access road is ready and the external infrastructure substantially completed.

Mah Sing already has four projects in Penang, including Residence@Southbay and Icon Residence@Georgetown.

YNH’s 3Q net profit rises 17.7% to RM15.75m
YNH Property Bhd posted a net profit of RM15.75 million in 3Q ended Sept 30, up 17.7% from RM13.38 million a year ago on the back of lower revenue. Revenue fell 35.12% to RM55.07 million from RM84.88 million while EPS stood at 3.93 sen, up from 3.56 sen. The group said it had a number of projects in the pipeline, including Fraser Residence KL, Kiara 163 in Mont’Kiara and Menara YNH in Kuala Lumpur. Fraser Residence KL has a GDV of RM650 million while Kiara 163 and Menara YNH have a GDV of about RM1 billion and RM1.2 billion respectively.

Plenitude’s 1Q net profit surges 72.3% to RM20.24m
Plenitude Bhd’s net profit surged 72.3% to RM20.24 million for 1Q2010 ended Sept 30 from RM11.74 million a year ago. Turnover was higher at RM77.08 million, representing a 33% increase from RM57.95 million a year ago.

Plenitude attributes its financial performance to “progressive profit recognised on properties sold, completed and handed over”, namely Taman Desa Tebrau (Johor), Taman Putra Prima (Selangor), Bayu Ferringhi (Penang) and Bandar Perdana and Lot 88 (Kedah).

This article appeared in City & Country, the property pullout of The Edge Malaysia, Issue 834, Nov 29-Dec 5, 2010