Week 35 - 2024
AIRASIA LAUNCHES PENANG-SHENZHEN, KOTA KINABALU-SHANTOU ROUTES
The Edge, 27/08/2024
Low-cost carrier AirAsia will operate a total of 33 routes to and from China in 2H24 with the launch of two new routes, namely Penang-Shenzhen and Kota Kinabalu-Shantou. AirAsia Malaysia will operate four flights weekly from Penang to Shenzhen from 28 October, whereas flights from Kota Kinabalu to Shantou will commence on 16 November, with three flights weekly.
KIP REIT ACQUIRES LAND IN GERIK FOR RM14.8 MILLION
The Edge, 24/08/2024
KIP Real Estate Investment Trust (KIP REIT) which primarily invests in retail properties, is acquiring a 100,416 sq. ft. parcel of land in Gerik, Perak, for RM14.8 million cash. This marks the trust's third acquisition this year, after KIPMall Kota Warisan in Sepang and D’Pulze Shopping Centre in Cyberjaya. Pacific Trustees Bhd, acting as its trustee, has signed a conditional sale and purchase agreement with Bluebros Hypermarket Sdn Bhd for the acquisition. The leasehold land, expiring in October 2112, includes a single-storey hypermarket, basement car park and office, totalling 60,895 sq. ft. of lettable area. The hypermarket is currently leased to TF Value-Mart Sdn Bhd, and the trust will enter into a new three-year triple net master lease with TF Value-Mart, featuring automatic renewals every three years and a 10% rental increase every three years. This acquisition will expand KIP REIT’s portfolio to 12 assets, including seven KIPMalls, AEON Mall Kinta City and three industrial properties in Pulau Indah, Klang. Its net lettable area will increase from 2.08 million to 2.15 million sq. ft. KIP REIT also expects to complete the acquisition of D’Pulze Shopping Centre by 1Q25.
MAH SING BREAKS GROUND FOR RESIDENSI SURIA MADANI; LAUNCHES M ASPIRA AT TAMAN DESA
The Edge & The Star, 30/08/2024
Mah Sing Group Bhd held a groundbreaking ceremony for Residensi Suria Madani and launched the M Aspira mixed-development project. Located in Taman Desa, Residensi Suria Madani is a one-tower apartment with a total of 800 units. The units will have a built-up size of 800 sq. ft., priced at RM200,000. Adjacent to Residensi Suria Madani is M Aspira. It has a total of 1,613 units spread over two towers with three layout types, offering built-up sizes of 706 sq. ft., 855 sq. ft. and 1,006 sq. ft. The selling price starts from RM448,000. Both Residensi Suria Madani and M Aspira are located on a 6.17 acre freehold land in Taman Desa, Kuala Lumpur.
KIP REIT EXPANDS PORTFOLIO WITH RM98 MILLION ACQUISITION OF FOUR INDUSTRIAL PROPERTIES
The Edge, 30/08/2024
KIP Real Estate Investment Trust which primarily invests in retail properties, has proposed to acquire another four industrial properties for a total purchase price of RM98.3 million. Pacific Trustees Bhd, acting as its trustee, has entered into four separate sale and purchase agreements (SPAs) for the acquisitions. The first SPA was signed with Sin Chee Heng Sdn Bhd to acquire a leasehold land with an industrial building in Cheras Jaya for RM22.6 million. The building includes a factory with a net lettable area of 66,632 sq. ft. The second SPA involves the purchase of a warehouse on 5.7 acres of freehold land in Pasir Gudang, Johor, from PK Fertilizers Sdn Bhd for RM23.3 million. The warehouse has a net lettable area of 184,120 sq. ft. Following these two acquisitions, the properties will be leased back to the respective sellers. Sin Chee Heng will lease back the Cheras Jaya property for an initial three-year term, with the option to renew for up to nine additional years.
PK Fertilizers will lease back the Pasir Gudang property with an initial three-year tenancy, with the option to renew for up to 12 additional years. The third SPA was signed with Channel Legion Sdn Bhd to acquire an existing lease over part of a leasehold land with an industrial building in the Port Klang Free Zone, Pulau Indah for RM23.7 million. The warehouse, situated on 6.4 acres of leasehold land with a net lettable area of 193,365 sq. ft., will be leased back to Teju Logistics Sdn Bhd for an initial three-year term, with the option to renew for up to 12 more years. The final SPA involves the acquisition of a processing plant sited on 9.7 acres of leasehold land in Bintulu, Sarawak, from Teju Logistics Sdn Bhd for RM28.7 million. The plant has a net lettable area of 207,315 sq. ft., with KIP REIT leasing the property to Hextar Solutions Sdn Bhd for an initial three-year term, with the option to renew for up to 12 additional years. The acquisitions and tenancies are expected to be completed in 4Q24.
AXIS REIT TO ACQUIRE TWO INDUSTRIAL ASSESTS NEAR PORT KLANG FOR RM159 MILLION
The Edge, 29/08/2024
Axis Real Estate Investment Trust which mainly focuses on industrial assets, has proposed to acquire two adjoining pieces of land together with buildings near Port Klang for RM158.64 million. The REIT's trustee, RHB Trustees Bhd, has entered into agreements to buy the assets located in the Pulau Indah Industrial Park from Malconrep Depot (M) Sdn Bhd and Dayang Mewah Sdn Bhd. Under the agreements, the trust will then lease both properties back to Malconrep Depot. The first property, measuring 44,095.78 sq. m. (474,643 sq. ft.) and comprising two blocks of individual detached industrial premises, will be leased for nine years with a starting monthly rental of RM570,179. The second property, measuring 18,261.18 sq. m. (196,562 sq. ft.) and consisting of a block of single-storey warehouse annexed with a double-storey office building and other ancillary buildings, will be leased for five years with a starting monthly rental of RM251,207. The properties are fully occupied warehousing facilities and accessibility to major highways through the Shah Alam Expressway (Kesas) within reach of Klang City Centre, Shah Alam, Petaling Jaya and Kuala Lumpur. The acquisition of the properties is expected to be completed by 4Q24.
CITAGLOBAL, TREE TECHNOLOGIES PLAN TO JOINTLY DEVELOP ECO-FRIENDLY INDUSTRIAL PARK IN GEBENG
The Edge, 28/08/2024
Citaglobal Bhd which is involved in the civil engineering and construction, telecommunications, oil and gas, power generation and manufacturing sectors, plans to team up with Tree Technologies Sdn Bhd, a privately held home-grown electric vehicle maker, to jointly develop a parcel of leasehold industrial land in Gebeng Industrial Estate, Pahang, into an industrial park with green elements. Citaglobal has entered into a binding term sheet with Tree Technologies for the proposed joint venture (JV), based on an equity shareholding of 65% for Citaglobal and 35% for Tree Technologies. Measuring 247 acres, the land is owned by Tree Technologies. The term sheet also encompasses a call option granted by Tree Technologies to Citaglobal to acquire the land for RM90 million to be satisfied via a combination of cash. The proposed JV enables cross-selling of services and technology, including design, engineering, procurement, construction services, and the development of renewable energy solutions such as battery energy storage systems (BESS), green roofs and rainwater harvesting systems.
CHINA COMPANY TO BUILD RM1 BILLION LITHIUM-ION BATTERY PLANT IN KEDAH
The Edge & The Star, 30/08/2024
Zhuhai CosMX Battery Co Ltd, a global manufacturer of consumer lithium-ion batteries and power lithiumion batteries, plans to invest RM1 billion to build its first manufacturing plant in Kedah, Malaysia. The project is expected to create over 1,000 jobs. The new facility under Unimx Technology Malaysia Sdn. Bhd. will be implemented in several phases at Kulim East Industrial Park, with groundbreaking expected to begin in 4Q24.
SKYWORLD BAGS CONTRACT TO DEVELOP PR1MA HOMES
The Edge, 28/08/2024
Skyworld Development Bhd’s wholly owned subsidiary, Aspirasi Cekap Sdn Bhd has secured a contract from Perbadanan PR1MA Malaysia (PR1MA) to develop affordable homes for PRIMA at Brickfields 2 in Kuala Lumpur. The proposed development consists of 491 units of PR1MA Homes. In consideration of the development rights, the company will pay PR1MA RM32.17million.
TROPICANA SELLS JOHOR LAND TO JAPANESE DATA CENTRE PLAYER FOR RM383 MILLION
The Edge & The Sun, 27/08/2024
Tropicana Corp Bhd has inked a sale and purchase agreement (SPA) with NTT Global Data Centers Holding Asia Pte Ltd to dispose of a parcel of land in Gelang Patah, Johor measuring 68.457 acres for RM383.13 million. The Sales and Purchase Agreement (SPA) was entered between Tropicana Corp’s wholly owned subsidiary Tropicana Firstwide Sdn Bhd (TFSB) and seven indirect subsidiaries of NTT Data Group, a Japanese multinational information technology service and consulting company. This is the fourth major disposal by Tropicana in the past nine months. The property group had separately disposed of three assets to IOI Properties Group Bhd over the period totalling RM1.115 billion. They include Tropicana's 70%-owned Tropicana Gardens Mall in Petaling Jaya (RM680 million), W Kuala Lumpur Hotel (RM270 million) and Courtyard by Marriott Penang (RM165 million). Tropicana said it has over 728 acres of landbank in Johor and will continue to build sustainable townships as well as look for strategic partners to jointly develop the land.
TROPICANA TO SOFT-LAUNCH LIDO WATERFRONT BOULEVARD AND TROPICANA UPLANDS MEGA DEVELOPMENTS IN JOHOR THIS YEAR
The Edge, 27/08/2024
Tropicana Corporation Bhd (Tropicana) will be soft-launching its two key developments in Johor — Lido Waterfront Boulevard in Johor City Centre and Fraser Hills in Tropicana Uplands, Gelang Patah in the coming months. Lido Waterfront Boulevard (Lido) is a freehold, integrated mixed development, which will be built on 163 acres of reclaimed land, located along the Johor City Centre waterfront facing Singapore. Lido will have a gross development value (GDV) of RM34 billion, and its first phase, The Watermark residence, will be soft launched around 4Q24. The Watermark is located within a 7–10 minutes’ drive to the Bukit Chagar Station of the Johor Bahru–Singapore Rapid Transit System (RTS) line. Meanwhile, Tropicana Uplands will be a 314-acre sustainable freehold township, strategically located within a 15–20 minutes’ drive from the Malaysia-Singapore Second Link Expressway and Senai International Airport.
TOMYPAK TO SELL NON-CORE LAND, FACTORY ASSETS IN SENAI FOR RM31 MILLION
The Edge, 24/08/2024
Flexible packaging materials manufacturer Tomypak Holdings Bhd is disposing of a 10.23 acre land, together with factory buildings in Senai, Johor for RM31 million. The group’s wholly owned subsidiary Tomypak Flexible Packaging Sdn Bhd has entered into a sale and purchase agreement with Goldcoin Victory Sdn Bhd for the proposed disposal. Goldcoin's principal activity is the buying, selling, renting and operating of self-owned or leased real estate of non-residential buildings. The disposal is expected to be completed by 4Q24.