News by Maybank

Also, the presence of Mitsui Fudosan will help enhance marketability and differentiate the BBCC from nearby projects...

Sales may have fallen short in 1QFY17 on the lack of new launches.

Sales for UEM Sunrise’s affordable housing projects have been satisfactory but that for high-end/high-rise projects such as Estuari and Almas remain slow.

Glomac’s FY16 property sales were weak at RM304 million, a decline of 40% y-o-y and 40% below management’s initial target.

Al-Salam REIT is currently assessing a mixed asset (commercial and retail) for acquisition, which could lift its total investment property value above the RM1 billion mark.

Year-on-year (y-o-y) earnings growth was largely supported by additional contributions from its new assets and improved profits from Gurney Plaza and East Coast Mall. However, we remain cautious about Sungei Wang Plaza (SWP), which could limit near-term earnings.

We understand that the acquisition of Menara Shell is still in progress, and injection into MRCB-Quill REIT (MQREIT) could take place in early 2017.

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.

Leveraging on its experience in Klang Valley mass rapid transit 1 (KVMRT 1), KVLRT 2 and Sunway bus rapid transit (Sunway BRT), it could clinch contracts from KVMRT 2, KVLRT 3 and KL-Klang BRT.

The acquisition comes with a rental income guarantee of RM15 million or RM5 million per annum for the first three years.