The investment thread (Finally)

[Funds Transfer]

Re: Property activities set to pick up again

The New Straits Times
10 May 2013| last updated at 12:30AM

Iskandar Malaysia to meet RM21b target


JOHOR BARU: Iskandar Malaysia is on track to meeting its target of attracting a total investment of RM21 billion this year.

Iskandar Regional Development Authority (Irda) chief executive Datuk Ismail Ibrahim said for the first quarter of the year, Iskandar Malaysia had recorded a total investment of RM5 billion.

"The signs are showing that the market is bullish and investors are making their impact. The business community, including foreign and local investors, are supporting Iskandar Malaysia," he said, adding that the political climate would not have a negative impact on Iskandar Malaysia.

"Whatever the political situation, I am sure the leadership will be able to resolve it," he said after attending the graduation ceremony of the first batch of trainees under the Iskandar Malaysia Creative Industry Talent Development Programme, jointly organised by Irda and Pinewood Iskandar Malaysia Studios.

 

[Funds Transfer]

May 12, 2013 1:35 pm

Malaysia to unleash up to $2.6bn in IPOs

By Jeremy Grant in Singapore

The return to power of Malaysia’s ruling political coalition is set to unleash up to $2.6bn in initial public offerings over the next six months, as deals that had been put on ice amid months of pre-election uncertainty are revived, bankers said.

The election last week looks set to breathe new life into IPO activity on Bursa Malaysia, which in June last year hosted the $2.2bn listing of Felda Global Ventures, a Malaysian palm oil company, then the second largest offering of the year after Facebook. In 2012 only the US, China and Japan, saw more capital raised in IPOs than Malaysia.

Bankers say at least six companies are preparing to file for a listing on Bursa. The first is likely to be Westports, which operates container facilities at Port Klang, in the Straits of Malacca. The company has said it expects container volume to grow 7-8 per cent annually for the next five years.

Much of such traffic is likely to be driven by increasing trade flows within the Association of Southeast Asian Nations (Asean), as companies in the most advanced countries of the 10-member bloc, which includes Malaysia and Indonesia, build supply chains to support regional business.

The planned Westports IPO, being arranged by Goldman Sachs, Credit Suisse and Maybank, could be valued at up to $500m and is set for the third quarter, one banker said.

Next is likely to be a $250m issue by Air Asia X, the long-haul arm of AirAsia, the southeast Asian low cost carrier run by Malaysian entrepreneur Tony Fernandez. The IPO had been planned for March but was delayed by the election and could now happen in June or July, the same banker said. CIMB, the Malaysian bank, is handling the deal with Maybank and Credit Suisse.

Around the same time a roughly £300m issue is expected by Ranhill Energy and Resources, the largest power generator in the Malaysian state of Sabah and the main provider of water services in Johor, an industrial state neighbouring Singapore.

Power will also be a focus in September when Malaysian building group MMC Corp is set to float its 51-per cent owned power business, Malakoff, which is Malaysia’s largest independent power producer. The issue, which is likely to be worth up to $1bn, is being arranged by JP Morgan and others, a second banker said.

MMC is controlled by Syed Mokhtar al-Bukhary, one of Malaysia’s richest businessmen.

With the election over, plans to further develop a vast industrial zone in the southern tip of peninsular Malaysia, known as Iskandar, are also likely to move into high gear. One of the companies involved in developing waterfront land at the site, in Johor, Iskandar Waterfront Holdings, is set for a $300m IPO, possibly in the fourth quarter, the bankers said.

 

[Funds Transfer]

Business Times Malaysia

Mah Sing sees demand shifting to Iskandar

By Chuah Bee Kim
[email protected]
2013/05/13

JOHOR BARU: Property giant Mah Sing Group Bhd foresees a shift in demand for its properties from Kuala
Lumpur and Penang to Iskandar Malaysia here in the near future.
Its executive director for operations, Lim Kiu Hock, said the shift has taken place since Iskandar Malaysia’s
launch in 2006.

“The value of properties in Iskandar Malaysia will see an increase in the next three to five years,” Lim said at
a press conference, here, on Saturday after an exclusive preview of The Meridin@ Medini at the Persada
International Convention Centre.

The preview was attended by about 1,500 guests, with some from Singapore, South Korea, Japan, Taiwan,
China and Indonesia.

The preview was on the Meridin Suites Residences, which comprise three tower blocks with 756 units.
Of these, only Tower A with 400 units and Tower C with 195 units were opened to the guests for
pre-selection of units. Tower B, which has 161 units, will only be opened for registration when the serviced apartments are launched
next month. The units are pegged at between RM387,000 andRM975,000.

Besides the Meridin Suites Residences, the 3ha integrated development, with a gross development value of
RM1.1 billion, also features the Meridin Linx Small Office Versatile Offices, Meridin Walk lifestyle retail
podium and Meridin Exchange corporate towers.

Lim said the company is confident of good response for the serviced apartments due their strategic location.
“Using Johor Baru’s new coastal highway, one can get to Nusajaya within 10 minutes,” he said, adding that
the development is only four minutes from the Legoland theme park.

“Besides our company’s track record, another big draw is that investors in this special economic zone will get
a lease extension of 30 years, making the total lease period 129 years,” Lim said, adding that government
policies have boosted the Johor property sector.
Mah Sing, incorporated since 1991, has a total of 41 residential projects comprising landed properties and
high-rise, and commercial and industrial properties with a remaining GDV and unbilled sales of close to
RM20 billion.

"The company has RM2.22 billion in remaining GDV and RM145 million unbilled sales from the remaining
164ha landbank in Johor," he said, adding that the company is targeting 20 per cent of its sales to come from The Meridin@Medini.
Also present were chief operating officer (township residential) James A. Bruyns and senior general manager
(southern region) Dr Chai Kow Sin.

 

[inikalilah]

all this r paid advertisements la...take it with a pinch of salt

 

[wolverine23]

Simple question to ask the experts here about real estate investment.

If I have a property that makes 33% (before costs) in 9 months, should I sell? Or wait for it to appreciate further? (I am still getting ok rents and there are some catalysts around the area happening within 2 - 4 years)

ROE is 69% if I sell it off now. But might be hard to buy back around the same area...

Any advice?

 

[Legolad]

Simple question to ask the experts here about real estate investment.

If I have a property that makes 33% (before costs) in 9 months, should I sell? Or wait for it to appreciate further? (I am still getting ok rents and there are some catalysts around the area happening within 2 - 4 years)

ROE is 69% if I sell it off now. But might be hard to buy back around the same area...


Any advice?

I'll ask myself these Q:
1. What do I want to do with the money? Urgent need? Or another investment?
2. If another investment, will it get better returns than this?
3. Am I selling to get out of the market? E.g. Migrate to another country, some info you received/perceived that may not be favorable to your existing investment, such as political crisis, new rules to be introduced, etc.?

 

[potter]

throw stone ask road.
33% - 5% - miscellaneous fees.

 

[Nusajaya]

1) don't be tempted by short term gain! Investment is for long haul.
2) sell only if you have identified a much better option in terms of growth potential or yield. Yes, unless you believe you can get it back cheaper for some unidentified reason but don't hope for market to crash to buy back!
3) unless you are getting younger, borrowing/leveraging will only get tougher as you aged.
4) ok rent today, will look handsome rent in 10 years down the road. No magic but thanks to inflation.

My two cents worth! Hope that helps...

Simple question to ask the experts here about real estate investment.

If I have a property that makes 33% (before costs) in 9 months, should I sell? Or wait for it to appreciate further? (I am still getting ok rents and there are some catalysts around the area happening within 2 - 4 years)

ROE is 69% if I sell it off now. But might be hard to buy back around the same area...

Any advice?

 

[wolverine23]

I'll ask myself these Q:
1. What do I want to do with the money? Urgent need? Or another investment?
2. If another investment, will it get better returns than this?
3. Am I selling to get out of the market? E.g. Migrate to another country, some info you received/perceived that may not be favorable to your existing investment, such as political crisis, new rules to be introduced, etc.?

1) No urgent need. Will need to quickly get another investment so as not to miss the market. (Perhaps get a better unit, etc..)
2) Will have to search for another place which has catalysts.
3) Not getting out of market.

Advice?

 

[Mingchye]

1) No urgent need. Will need to quickly get another investment so as not to miss the market. (Perhaps get a better unit, etc..)
2) Will have to search for another place which has catalysts.
3) Not getting out of market.

Advice?

I think you have already answered your question. Since you dont have any "better investment" opprotunity in mind taht you need the cash for, why cash out now? Cash out only when u confirm identified a better investment opp and its a good move.

 

[wolverine23]

ok! wait for 100% gain!

I think you have already answered your question. Since you dont have any "better investment" opprotunity in mind taht you need the cash for, why cash out now? Cash out only when u confirm identified a better investment opp and its a good move.

 

[tutucake]

But doesn't mean if he wanna cash out means immediately got buyer right?

 

[wolverine23]

Correct........

but doesn't mean if he wanna cash out means immediately got buyer right?

 

[wuqi256]

1) No urgent need. Will need to quickly get another investment so as not to miss the market. (Perhaps get a better unit, etc..)
2) Will have to search for another place which has catalysts.
3) Not getting out of market.

Advice?

Agree with MC's analysis. Keep what you have, roll what you have spare. Best wishes

 

[Flames878]

Here is another nice report to share.

From Deutsche Bank - Special Report - Malaysia-Singapore Economic Symbiosis

Economic fundamentals will support future growth. Iskandar will benefit from this great integration.

https://docs.google.com/file/d/0B_Zmy_B786BLTE9Na3Q5aXhZdE0/edit?usp=sharing

 

[wolverine23]

Something to think over the weekend?
Can I triple my money if I hold my Iskandar properties over the next 5 years?

 

[Funds Transfer]

Something to think over the weekend?
Can I triple my money if I hold my Iskandar properties over the next 5 years?

No way, Bro.
Unless your base year is 2009.

 

[wolverine23]

No way? :(

condo cannot hit 1800psf in 5 years time?

how about 10 years?

No way, Bro.
Unless your base year is 2009.

 

[Funds Transfer]

No way? :(

condo cannot hit 1800psf in 5 years time?

how about 10 years?

Well, maybe.
But what I learnt through my investments is that targets need to be reviewed; upwards or downwards. And that the initial reason to invest should not be 3-fold return. That remains a lofty target.

My 2 cents worth.

 

[wolverine23]

Emm...for Iskandar I really have no targets.....

Don't know if able to rent out or able to sell.

Either lose all or win big time!

Well, maybe.
But what I learnt through my investments is that targets need to be reviewed; upwards or downwards. And that the initial reason to invest should not be 3-fold return. That remains a lofty target.

My 2 cents worth.