The market value of the land parcel and buildings, as appraised by Messrs DTZ Nawawi Tie Leung Property Consultants on April 22, amounts to RM262.5 million.
Property development increased by 72% y-o-y, mainly contributed by the Triling project in Singapore and IOI Palm City in Xiamen.
Major launches in FY16 include Sunway Gandaria (gross development value: RM200 million), Sunway Geo Residences 3 (RM400 million), Casa Kiara 3 (RM200 million), Velocity (RM200 million), Sunway Iskandar (RM400 million) and others.
The take-up rate for Matrix Concept’s ongoing projects remains encouraging. Suriaman phase 1 and 2’s take-up rates have increased from 58% to 73% quarter-on-quarter (q-o-q), while the recently launched Hijayu 3 saw an encouraging take-up rate above 51%.
In 2015, new launches (in unit) dropped 19% as developers delayed their launches after a fall in take-up rate from 45% to 41%. Despite the rise in number and value of unsold units (which increased 16% and 56% respectively), it still remains manageable as the total of unsold units only represents about 1.6% of existing housing stock.
MRCB-Quill REIT’s first quarter of financial year 2016 (1QFY16) gross revenue of RM32.7 million, up by 75.5% year-on-year (y-o-y), was translated into a normalised net profit of RM15.24 million (84.1% higher y-o-y), accounting for 26.2% and 26.8% of Hong Leong Investment Bank Research and consensus full-year forecasts respectively. There were no dividends in the quarter as its dividends are usually declared semi-annually.
Salcon is currently bidding a total tender book of over RM2.2 billion with management’s target of a 20%-30% success rate. These jobs include the Langat 2 WTP Phase II contracts, new alternative water supply jobs in Selangor and the projects from 11MP (11th Malaysia Plan) to reduce non-revenue water (NRW) to 25% from 36.6% in 2013.
We understand that Tambun Indah Land has secured advertising permits and developer licences (APDL) for Raintree Park 2 and Avenue Garden early this month, after delays of more than half a year.
We estimate that the disposal of Menara Shell will reduce MRCB’s net gearing from the current 113% to 86% on a pro forma basis.