Week 40 - 2023
BATIK AIR TO START NON-STOP FLIGHTS TO TASHKENT ON 8 DECEMBER
The Sun, 05/10/2023
Batik Air, will soon introduce non-stop flights to Tashkent, Uzbekistan. Commencing on 8 December, there will be two flights per week. The new expansion aligns with the airline’s commitment to offering diverse and exciting travel experiences to passengers. Fares start at RM2,553 for economy class and RM4,003 for business class for all-inclusive one-way fares on Batik Air’s brand-new A330 aircraft.
KIMLUN SECURES TWO CONSTRUCTION CONTRACTS WORTH RM140.22 MILLION IN JOHOR
The Edge, 02/10/2023
Kimlun Corporation Bhd has secured two contracts totalling RM140.22 million from Eco World Development Group Bhd relating to the construction of a service apartment and a series of linked houses in Johor. The engineering and construction services provider said the contract was awarded to its wholly owned subsidiary Kimlun Sdn Bhd. The scope of work includes the design and construction of a service apartment block and amenities, with an expected completion date of 1 April 2026. The group will also undertake the construction of 148 linked houses and accompanying ancillary structures, with an anticipated completion date of 1 April 2025.
ECONPILE BAGS RM101 MILLION JOB FOR SOHO PROJECT IN KUALA LUMPUR
The Edge, 02/10/2023
Piling and foundation specialist Econpile Holdings Bhd has bagged a contract worth RM101.34 million to undertake sub-structure works of three blocks of small office home office (SOHO) in Kuala Lumpur. Econpile’s wholly-owned subsidiary Econpile (M) Sdn Bhd has accepted the letter of award from Suriamega Development Sdn Bhd for the job. The sub-structure works for three blocks of SOHO comprising two blocks of 50-storey SOHO and a block of 51-storey SOHO with podium and basement carpark. Works for the project are divided into three sections with different dates of commencement where each section shall be completed within 18 months from their respective date of commencement.
YLI RECEIVES LAND ACQUISITION COMPENSATION OF RM98 MILLION FROM MALAYSIAN RAIL LINK
The Edge, 04/10/2023
YLI Holdings Bhd’s subsidiary, Laksana Wibawa Sdn Bhd, has accepted and received RM97.84 million in compensation for its land in Hulu Serendah, Selangor that was compulsorily acquired for a rail project. The steel manufacturer said the land was acquired by Malaysian Rail Link Sdn Bhd, an agency under the Ministry of Finance Inc (MOF Inc), which has been appointed as the asset and project owner of East Coast Rail Link (ECRL). The group said the RM97.84 million compensation includes compensation for severance damages. Following the disposal, YLI is expected to gain approximately RM62.17 million and it will utilise most of the proceeds for expenses and repayment of its borrowings, as well as redemption of Redeemable Convertible Preference Shares (RCPS).
KIP REIT UNITHOLDERS APPROVE ACQUISITION OF KIPMALL KOTA WARISAN
The Star, 04/10/2023
KIP Real Estate Investment Trust (REIT) has received the green light from unitholders to acquire KIPMall Kota Warisan for RM80 million cash. KIPMall Kota Warisan houses a one and a half-storey retail centre, with net lettable area of approximately 186,215 sq. ft., on freehold land in Dengkil, Selangor. The proposed acquisition is expected to be completed by 1Q24. The REIT’s retail properties have seen extremely encouraging occupancy rates with an average occupancy rate of 92.3% in the financial year 2023.
JASA KITA SELLS LAND IN KL FOR RM43 MILLION IN RELATED PARTY TRANSACTION
The Edge, 05/10/2023 & The Star, 06/10/2023
Jasa Kita Bhd is disposing of a parcel of land for cash consideration of RM43.08 million in a related party transaction. The leasehold industrial land, measuring 153,859 sq. ft., is located within the PKNS Setapak industrial area in Kuala Lumpur. Jasa Kita has entered into a sale and purchase agreement with Urban Reach Sdn Bhd (URSB), a 55% wholly-owned subsidiary of FCW Holdings Bhd to dispose of a parcel of the land. Jasa Kita is expected to record a disposal gain of RM37.54 million from the land disposal. Part of the land is being rented by Jasa Kita to Best Auctions Sdn Bhd (BASB) at a monthly rental rate of RM60,000 for the sole purpose of storage of vehicles. The disposal is expected to be completed in 2Q24.
SUNCON JV SECURES RM595 MILLLION DISTRIBUTION CENTRE CONSTRUCTION JOB; UNIT WINS RM190 MILLION DATA CENTRE CONTRACT
The Edge & The Sun, 05/10/2023 & The Star, 06/10/2023
Sunway Construction Group Bhd’s (SunCon) joint venture (JV) with construction firm Kajima (M) Sdn Bhd has won a RM595.38 million contract to design and build a distribution centre warehouse for Daiso Malaysia Group Sdn Bhd in Pulau Indah, Selangor. The Kajima-SunCon JV inked a letter of acceptance with Daiso for the proposed design and construction of the Daiso global distribution centre (GDC) warehouse. The contract will span a period of 34.5 months and is expected to be completed by 2Q26. The contract is valued at RM595.38 million.
Separately, the Japanese household items supplier also announced that it will be investing RM1 billion in making the GDC as a global distribution hub for Daiso to launch logistics operations for the entry of Daiso’s products from Japan and China, including distribution to 22 countries in Asia and the Middle East. According to Daiso Malaysia Group Sdn Bhd, the GDC, with an area of 130,000 sq. ft., is expected to commence development in May 2024 and be completed in May 2026, and commence its operation in January 2027. Meanwhile, SunCon also announced that Sunway Construction Sdn Bhd (SCSB) secured a job from K2 Strategic Infrastructure Malaysia Sdn Bhd to develop a data centre in Johor valued at RM190 million. The project is for a period of approximately 14 months and is expected to be completed in phases, with the final phase to be completed by 4Q24.
INTA BINA BAGS RM100 MIL CONTRACT TO BUILD 24-STOREY BUILDING IN SHAH ALAM
The Edge, 05/10/2023
Inta Bina Group Bhd’s unit Inta Bina Sdn Bhd has received a RM100.50 million contract from Angkasa Senuri Sdn Bhd to develop a 24-storey commercial building in Shah Alam, Selangor. The construction company said the contract period is 26 months starting on 15 October 2023.
IGB-REIT PROPERTY PORTFOLIO UP RM166 MILLION
The Star, 06/10/2023
IGB Real Estate Investment Trust (IGB-REIT) carried out a revaluation on two of its properties resulting in a revaluation surplus of RM166 million. The portfolio of IGB-REIT’s properties is revalued at RM5.186 billion or a revaluation surplus of RM166 million from RM5.02billion previously. The market value of Mid Valley Megamall is RM3.79 billion while The Gardens Mall is valued at RM1.396 billion as at 30 September.
IOIPROP SET FOR STRONG FY24 SHOWING
The Star, 06/10/2023
IOI Properties Group Bhd (IOIProp) is set for a notable financial year 2024 (FY24) ending 30 June with the completion of the IOI Central Boulevard (IOICB) office-tower project, which will strengthen its cash flow and portfolio as well provide recurring income. The development in Singapore is set to begin commercial operations in early 2024 and the cash generated could help IOIProp finance other planned developments. The office towers have 40% committed tenancy while negotiations are in advanced stages for another 20%. FY24 will also see the group launch a record RM10.6bil worth of projects in Malaysia (RM2.05bil) and Singapore, with the flagship RM8.56 billion Marina View Residences project. Local launches planned by IOIProp include new projects within the Bandar Putra Kulai township in Johor as well as 16 Sierra township in Puchong, Selangor. The mixed-development Marina View Residences is set to be launched this month with 350 units of hotel rooms by W Hotel on the lower floors and 683 residential units on the upper floors.
SP SETIA’S IRAMA VILLA III IN BANDAR KINRARA SOLD OUT
The Sun, 05/10/2023
SP Setia’s latest residential development, Irama Villa III in Bandar Kinrara, has been sold out. The 3.97 acre project comprises 38 units of freehold double storey terrace houses with a gross development value of RM61 million. The size of the units range from 2,165 sq. ft. to 2,770 sq. ft., and 2,234 sq. ft. to 2,337 sq. ft. with four-plus-one bedrooms and five bathrooms. Price starts from RM1.4 million.
MRCB LAND’S TUJUH RESIDENCES APARTMENT IN KWASA DAMANSARA NOW OPEN FOR PREVIEW
The Edge, 02/10/2023, The Star, 30/09/2023 & The Sun, 05/10/2023
MRCB Land Sdn Bhd’s latest high-rise residential development, named Tujuh Residences in the ongoing 94-acre Kwasa Damansara City Centre (KDCC) project, is now open for preview. Tujuh Residences will be a 29-storey apartment tower, comprising 573 units. These homes offer one- to three bedrooms, as well as dual key units, with built-ups ranging from 550 sq. ft. to 909 sq. ft. With a gross development value of RM384 million, the selling prices start from RM476,000 to RM797,000. The development will also feature sustainable and innovative features including a rainwater harvesting system, low volatile organic compound (VOC) weather-resistant paint and anti-dirt technology paint, and advanced security like ground granulated blast-furnace slag additives, which reduces cement chemical usage. Some facilities in the project include a swimming pool, gymnasium, multipurpose hall, children’s playground, barbecue area, and landscaped gardens. The development also features three-tiered security systems for the safety of its residents. Amenities within close proximity to Tujuh Residences include a 10-acre Central Park that features jogging trails and recreational facilities. The development is also within walking distance of two MRT stations, namely Kwasa Damansara and Kwasa Sentral. Tujuh Residences is accessible via major highways such as the New Klang Valley Expressway (NKVE), Damansara-Puchong Expressway (LDP), Guthrie Corridor Expressway, and Damansara-Shah Alam Elevated Expressway (DASH). It is also less than 10 kilometres from the Sultan Abdul Aziz Shah Airport, which is also known as Subang Airport or Subang Skypark.
AVALAND UNVEILS AMIKA RESIDENCES
The Edge, 04/10/2023
Real estate developer Avaland Bhd recently opened its Amika Residences serviced apartments in Subang Jaya for sale. Amika Residences has a gross development value of RM475 million and is situated on a 3.5 acre freehold parcel, facing a 9.2 acre central park. The development comprises 468 serviced apartments in two towers (Tower A: 216 units, Tower B: 252 units) and the units are provided in three sizes – 883 sq. ft., 1,075 sq. ft. and 1,227 sq. ft. – offering layouts of two-plus-one bedrooms, three bedrooms and three-plus-one bedrooms respectively. Amika Residences will also have 24 retail units with built-ups ranging from 1,335 sq. ft. to 3,681 sq. ft. Facilities includes a stone garden, tatami lawn, water cascades and koi pond, tea leaf pavilion, gymnasium, central pool, garden kitchen and sky garden. Amika Residences has achieved GreenRE certification (gold rating), with 84% of dwelling unit spaces designed to have excellent airflow and natural light in 90% of the rooms, enhancing comfort for residents and reducing electricity costs.
ALFA BANGSAR SPECIAL UNITS RELEASED INTO THE MARKET
The Sun, 05/10/2023
City Motors Group, the developer of the Alfa project, recently announced the release of special reserved serviced apartment units of the development for sale to the public. Alfa Bangsar, a 42 storey, multi-faceted development, boasts an eight-level podium featuring a car park, hotel and 35,000 sq. ft. of commercial space. The hotel, managed by InterContinental Hotels Group, takes up Level 9 to Level 18 and offers 220 rooms and amenities such as swimming pool, sauna, garden, function hall, meeting rooms and gymnasium. The project also includes 178 serviced apartment units on Level 19 to Level 42, with various layouts. Amenities includes a sky garden, multipurpose room, fitness centre, swimming pool, barbecue area and children’s playground. Since the release of the units on 20 September, the response from the market has been positive, with 80% of the units sold. The project is on track for completion in 2Q24.
SELANGOR AIMS TO BECOME HUB FOR TRADE, LOGISTICS IN SOUTHEAST ASIA
The Edge, 04/10/2023 & The Sun, 05/10/2023
Selangor has set an ambitious goal to establish itself as the hub for trade and logistics in Southeast Asia, driven by its strong economy, diverse workforce, and high per capita purchasing power. Selangor’s robust economy, diverse workforce, and high per capita purchasing power make it an ideal choice for global businesses seeking growth opportunities in the region. Selangor now contributes more than one quarter of Malaysia’s entire gross domestic product at 25.5% in 2022.
MALAYSIA’S FIRST HYATT PLACE HOTEL OPENS IN BUKIT JALIL
The Edge, 05/10/2023
Malaysia’s first Hyatt Place hotel opened for business in Bukit Jalil, Kuala Lumpur.
Hyatt Place Kuala Lumpur, the first international-class hotel in Bukit Jalil, offers 250 guest rooms, various dining establishments, free Wi-Fi for guests and a fitness centre. The hotel is currently offering rates from RM385 per room per night, inclusive of breakfast for two guests. Situated in a well-connected area within reach of national stadiums, convention centres, golf courses and a recreational park, Hyatt Place offers direct access to major highways. The hotel is a 30-minute drive to Sultan Abdul Aziz Shah Airport in Subang, a 45-minute drive to Kuala Lumpur International Airport and the Awan Besar LRT station is a short drive away. The hotel is fully owned by Mygres Ceramiche Sdn Bhd (MCSB).
AIRBNB GUESTS IN MALAYSIA SPENT RM7 BILLION IN 2022
The Edge, 05/10/2023
Airbnb guests in Malaysia spent about RM7 billion in the country in 2022, across areas such as purchases in restaurants, retail stores, and on transport. The platform’s activities also contributed over RM5 billion to gross domestic product and supported almost 57,000 jobs. A significant majority of Airbnb guests’ spending came on top of their accommodation spending, with spending on the non-accommodation category being more than six times than the Airbnb guest spending on accommodation. The top five states and territories that benefitted the most from Airbnb’s activities were Kuala Lumpur, Selangor, Johor, Penang and Sabah. Notably, in Selangor, Airbnb guest spending grew to about RM1 billion in 2022, up 85% from 2019. In 2022, a significant majority of Airbnb guests were domestic travellers, who made up 81% of total guests, up from 63% in 2019. As domestic travel grew, domestic Airbnb guest spending in 2022 totalled almost RM4 billion. This accounted for about 58% of total Airbnb guest spend in Malaysia, up from 35% in 2019. There were also two profound changes in travel behavior since the pandemic – the dispersal of tourism away from urban areas, and long-term stays driven by the emergence of flexible work arrangements.
MALAKOFF INVESTS RM2.5 BILLION TO DEVELOP SOLAR PROJECTS
The Edge, 04/10/2023 & The Sun, 05/10/2023
Malakoff Corporation Bhd is expected to invest around RM2.5 billion to develop 500MW of solar projects within the Albukhary Group of Companies over five years. The diversified business group comprises the MMC Group, DRB-Hicom Bhd and Tradewinds Plantation Bhd, among others. Pursuant to the above, Malakoff and MMC Ports have entered into a memorandum of understanding (MoU) to undertake business exploration in various green power initiatives with investments worth RM350 million. This includes but is not limited to any solar power programme under the government’s initiative such as the Corporate Green Power Programme (CGPP), Self-Consumption (SelCo), cold ironing or shore-to-ship power supply, installation of electric vehicle charging stations and others.
Malakoff and MMC Ports namely Northport (Malaysia) Bhd, Johor Port Bhd, Tanjung Pelepas Sdn Bhd and Penang Port Sdn Bhd are set to embark on a transformative partnership within the CGPP. Under the SelCo rooftop solar programme, Malakoff will serve as the developer for end-user MMC Ports, while Malakoff will manage the installation, operation and maintenance of the solar photovoltaic system.
SENAI INTERNATIONAL AIRPORT SAID TO BE ABLE TO HANDLE SEVEN MILLION PASSENGERS A YEAR BY 2030
The Edge, 05/10/2023
The upgrading of the Senai International Airport (LTAS) will enable an increase in its passenger handling capacity to seven million passengers a year by 2030, from four million a year previously. From January to August this year, the LTAS handled 1.99 million passenger movements. The new “face” of the LTAS, which started in August, is expected to handle five million passengers this year. The upgrading project, involving a cost of RM11.9 million, is aimed at increasing efficiency, safety and effectiveness in handling passengers by airline companies, as well as bringing comfort to passengers. The project, which commenced in March 2020, involves an area of 18,191 sq. ft., bringing the total area of the LTAS departure hall to 105,550 sq. ft. This involves the addition of five departure gates, covered walkways, seats, lifts, escalators, stairs, toilets, the fire alarm system, flight information display system, CCTV system and Wi-Fi.
SUNWAY SUBSIDIARY, PDC IN DEAL TO DEVELOP INDUSTRIAL LAND IN BATU KAWAN
The Edge, 05/10/2023
Sunway Bhd and Penang Development Corporation (PDC) will jointly develop a parcel of prime industrial land in Batu Kawan, Penang. Sunway subsidiary Umech Land Sdn Bhd will develop the 559 acre site in exchange for a land entitlement of RM646 million to PDC. Sunway’s 70% stake in Umech is held via its wholly owned subsidiary, Sunway Bukit Gambier Sdn Bhd. The land is situated about 4km from the Penang Second Bridge and is a 20-minute drive from Penang Island, and a 30-minute drive from Penang Port. The strategic location makes it an ideal site for the proposed industrial park, which would complement the Batu Kawan region’s burgeoning industrial areas such as Batu Kawan Industrial Park 1 (BKIP 1) and Valdor Industrial Park. The proposed industrial park will comprise factories, industrial lots and commercial components with a gross development value of at least RM3.5 billion.