Eco World Development Group Bhd’s (EcoWorld) 40%-owned BBCC Development Sdn Bhd ([BBCCD] and remaining stake of 40:20 held by UDA Holdings Bhd:Employees Provident Fund have entered into heads of terms agreements and memoranda of understanding (MoU) with Mitsui Fudosan (Asia) (MFA) and Zepp Hall Network for the development and leasing of a retail mall and a live concert hall respectively at its Bukit Bintang City Centre (BBCC) project.
The acquisition comes with a rental income guarantee of RM15 million or RM5 million per annum for the first three years.
Pavilion REIT’s lower 3QFY15 y-o-y earnings were mainly attributed to higher quit rent and assessment expenses (3QFY15: RM2.7 million versus 3QFY14: RM200,000) and utility costs (+28.7% y-o-y). This has nudged down 3QFY15’s net profit margin by 3.1 percentage points to 59.0%, as compared with 3Q14.
Al-Salam REIT has a good combination of young and stable assets such as QSR Properties and KFCH International College (under triple net and step-up long leases) anchoring the earnings base, while newly refurbished Komtar JBCC provides much room for rental to play catch-up.