World’s smallest state for sale

A former World War Two fort in the North Sea, which was settled 40 years ago and declared a state with its own self proclaimed royal family, is up for sale. The Times said yesterday.

The tiny Principality of Sealand, which began life as Roughs Tower in 1941, is a 550-square metre steel platform perched on two concrete towers 11km off the coast of Harwich, eastern England.

It is accessible only by helicopter and boat but according to its owners, who want offers of eight digits or over, boasts uninterrupted sea views, guarantees complete privacy and is a tax haven.

“We have owned the island for 40 years and my father is 85,” Prince Michael of Sealand was quoted as saying.

“Perhaps it is time for some rejuvenation.” – AFP

Top 5 Emerging Real Estate Markets For 2006

Rhiannon Williamson, a freelance writer on property investing and emerging real estate markets has commented on top 5 emerging Real Estate Markets for 2006.

Here with the article offers you an overview of each country so that you can choose where to make your next real estate purchase.

Costa Rica – The CIA World FactBook has recently begun listing Costa Rica as “a Central American success story” because the Costa Rican government have successfully established an economically and politically stable country in which more overseas investors are focusing their financial interests.

The retiree and second home markets in Costa Rica are growing as is tourism interest and the country offers visitors and expatriates a stunning climate, an abundance of rare and beautiful flora and fauna, it is bordered by both the Caribbean Sea and the Pacific Ocean and the standard of living is both high and affordable.
The real estate sector in Costa Rica offers investors an affordable platform and the Costa Rican government offer investors certain tax breaks and incentives to commit to the country.

Ghana – Located in West Africa Ghana is a stunningly beautiful country with palm fringed, white sandy beaches and an incredibly forward thinking and progressive government.
The government of Ghana are committed to improving the economic conditions in Ghana and are targeting foreign direct investment and making significant constitutional changes to allow for freer flowing investment which will in turn attract greater overseas economic interest.
The country has a growing tourism sector which requires accommodation units to let out to visitors offering a real estate investor an immediate opportunity for rental yield. And the long term economic prospects for Ghana are positive which should give a property purchaser long term capital growth prospects from any investment made.

Malaysia – Economically speaking Malaysia is built on very solid foundations and is benefiting from closer export ties to China, low inflation, a small external debt and good foreign exchange reserves.

The country also has a growing tourism sector and a vibrant city based young executive market - either of which a property investor could target for rental income. Real estate in Malaysia is affordable and economic indicators suggest that property prices will continue to rise steadily over the medium to long term giving an investor the chance to reap capital growth from any investment made as well.

Qatar – Forget Dubai for she’s a blown rose! The next big Middle Eastern real estate marketplace is Qatar where constitutional changes have been effected to allow for foreign freehold ownership of property in certain key geographic areas and where overseas investment is flooding in.

The Qatari government are actively targeting foreign investment into all business sectors and establishing an oil-independent economy that should be forever sustainable. The property sector is entirely secondary to the government’s focus, therefore an investor can rest assured that demand for real estate in Qatar will remain strong as the majority of buyers are purchasing for long term accommodation not purely for investment gain.

Turkey – In 2005 Turkey finally began the process for EU accession and immediately received substantial investment commitment from Dubai. The real estate market is already doing very well in Turkey especially in Istanbul and along the Turkish Rivera, but this investment boost will help to raise infrastructure standards in Turkey and has also already boosted worldwide interest in this vast and impressive country.

Real estate investors buying today will benefit from a growing tourism market, increased foreign direct investment as Turkey moves towards EU membership and also a property market that is currently under priced and that has massive room for price expansion.
Hopefully these hot tips will give you some food for thought and assist you with your next real estate property portfolio purchase.

By Rhiannon Williamson

Bulgaria Ranks among the hostest real estate investment destination

Currency company FC Exchange quoated a finding from ICWALES that Bulgaria was named one of the hottest property destinations of 2007 for investors purchasing property abroad.

The other property top hot spots will be Cyprus, Central Portugal, America and France.
FC Exchange director Nick Fullerton said that these countries would probably offer the best investment returns in 2007.

The company based its predictions on its “industry expertise and experience of spotting and interpreting patterns and trends. Besides, it also took into consideration the specific features of each country's economy, such as currency strength and property market intensity.

Bulgaria's property managed to attract 'shrewd investors' because the prices were still low as compared to those in the other European countries.

Restructuring of SWIP

Scottish Widows Investment Partnership (Swip) has now divided its property investment team into UK and international divisions.

The UK arm will be led by Peter Lillington and Gerry Ferguson. Lillington will be in charge of the UK property investment with responsibility for all investment transactions and development, while Ferguson is in charge of the UK property fund management with responsibility for all UK property funds. He is also in charge of the Scottish Widows Investment Partnership Trust, Airport Industrial Property unit trust and the Covent Garden Market Partnership.

Swip has more than £7.8 billion in assets. The restructuring of the department is necessary as its property heads, Tom Laidlaw, and his deputy, Mike Channing, will be leaving at the end of the year to set up their own business after 15 years at the firm. (UBR).

Interest Rate Rise in UK

The latest rise of interest rates will add more problems to the current soft market in UK. It will greatly affect the buy-to-let investors.

Due to the recent boom in the UK property market, the property values have increased. This is good news for existing property investors. However, it is not good news for first-time land owners. The boom has caused these green land owners to pay significantly higher purchase prices for suitable investment properties. First-time land owners have to choose carefully the buy-to-let mortgage with the lowest possible interest rate for their investment.

When interest rates increase, it creates a double squeeze on potential investors. The first being a reduced offer and the second, is that once an investor owns a buy-to-let property, higher monthly mortgage payments eat away at the potential financial returns.

Besides, higher interest rate also causes less money to become available to be borrowed. The amount that can be borrowed when buying a property to let out depends, amongst other factors, on how much rent the property generates, as well as the interest rate used by the lender to calculate the funds they are willing to offer. Higher interest rates mean lower mortgage offers and therefore higher deposits are required.” Some experts also reveal: “Investors should also be aware that there may be further UK base rate rises in the months ahead. Existing buy-to-let borrowers, whose mortgages are currently on discounted or variable rates, could also benefit hugely by having their current mortgage deals reviewed against the current investment mortgages available”

To get a Good Investment Property

Nowadays many investors are looking for properties with good rental income for investment. To venture into this investment, you need to prepare a concrete plan or strategy on how you are going to develop your real estate into a money-spinning endeavor. Otherwise, you will end up losing all of your investment.
To find a good investment property, you need to do some data research and keep good relationship with estate agents. Estate agents are your good friends to help you find a profitable rental property. Besides, they are also your friends to help you to dispose off your property when you want to cash out.

To get started in your rental real estate business, the following tips might help:

·Prepare an investment plan to determine the holding period of your ownership of the particular rental property. Holding period will affect your cash flow. The longer you hold the property, most probably the more you need to spend on maintenance, repairs and improvements. The repair costs incurred might eat into your investment profits. If you are not sure of your holding period, then you’d better adopt a more conservative approach and don’t spend too much. Nevertheless, owning the rental estate property for less time would also create more investment risks especially when buying in an overheated market. To compensate for that risk, you need a bigger potential annual return. For many small investors, however, long-term ownership is smart because it allows them plenty of time to outlast any fluctuations in the market -- and also since the rental income can be a nice supplementary income in the meantime. Being a landlord is also a rewarding day job for some.

·Hunt properties that are going to be foreclosed or already foreclosed. Get to know some bankers or auctioneers, then you will be able to get some additional information of properties that are about to be foreclosed or are already foreclosed. Meanwhile, contact your real estate agent friends to help you to source for possible buyers. Besides, you can also join some property owner’s association in order for you to make contact with the landowners. You can ask the landowners directly to see if they are willing to sell; you may also try looking in newspapers for rental ads or you may drive around neighborhoods in order to search for “for rent” signs.

·Get your finances in shape. If you really want to engage in a rental estate property business you need to have a good credit standing -- meaning less credit card debt and other consumer debts. Generally, lenders usually require bigger down payments, charge higher interest rates and want your finances to be in better shape when you are buying rental properties. Besides, keep some money for maintenance and also holding costs if you cannot get tenants in due course.

·Avoid overspending. The reason why you invest on a rental estate property is for you to gain profit and not to lose every saving you’ve got. Make sure that you have saved enough for your retirement before investing in rental real estate since investment is like any business wherein you tend to lose some and then win some. But just to minimize your risks, try to save as much as you can. Better be prepared than be sorry later on.

US: Homebuilder sentiment rebounds in November

The housing market index compiled by the National Association of Home Builders (NAHB) improved for a second consecutive month to 33 in November (October: 31) as sales incentives improved affordability for consumers. The index of sales expectations in the next six months also jumped 4 points to 46. reading below 50 mean the overall confidence among homebuilders remain poor.

Belgium: Blackrock International Land’s first property investment in Continental Europe

Blackrock Land Continental Limited (a subsidiary of Blackrock) has acquired 90% of a company owning a substantial warehouse and office portfolio in Brussels, Belgium. The other 10% will be held by EuroCapital Property Group, a locally based property investment company.

The properties are located in the Zaventem South business and semi-industrial zone, on the E40 Brussels to Germany motorway, close to Brussels airport. The integrated buildings consists of 23,000 sq.m built up of which 15,600 m sq (168,000 sq ft) are warehouse distribution facilities and 7,400 m sq (80,000 sq ft) are offices.

The properties will be jointly managed by Blackrock Land and EuroCapital Property to maximize the rental income and enhance capital value. The total outlay on the transaction, including costs, is approximately €19.5m. Generating annual income in excess of €1.7 million (inclusive of the rental guarantee), the portfolio will provide a net initial yield of more than 8.7%.

£500M from Morgan Stanley JV Kandahar

Kandahar Real Estate Ltd, a subsidiary of a London-based private property investment and asset management firm, The Kandahar Group, has joined with Morgan Stanley Real Estate's MSREF V International in a 50:50 joint venture project with the intention of investing £500 million (US$944 million) into retail and leisure properties throughout the United Kingdom.

The venture's initial portfolio will include the 560,000-square-foot Drake Circus shopping center in Plymouth, U.K., which was developed for Morgan Stanley by P&O Estates Ltd., and opened on Oct. 5, 2006. Also in the initial portfolio will be Kandahar's 1 million-square-foot UK High Street property portfolio, with a total value of £243 million (US$458.7 million).

In a statement, Morgan Stanley executive director Toby Phelps said that the firm looked forward to taking advantage of the knowledge of U.K. retail investment brought by Kandahar, which holds a portfolio of 13 U.K. retail assets, dating back to the firm's original investment in 2003.

Owned by David Ross' Kandahar Trust, The Kandahar Group is led by the management team of Martin McGann, formerly finance director at Pillar Property Plc; Amanda Hill, former head of property at The Carphone Warehouse, where she led the growth of the store portfolio from 20 to 600 stores; and Mike Tyler, who was responsible for asset management within the Hercules portfolio.

CEO Opinion Survey on 2007 Property Market

What are the CEOs' opinion on 2007 Malaysia Property Market?

These are the findings of an annual survey conducted by a property Consultant firm WTW. Let's see what they said....

Click here to download the report.

Australia: Women 'waiting out' property slowdown

A research done by Panorama Nielsen Media Research found out that Woman tends to be more faithful than man in property investments.

"Men have responded by selling their investment properties in large numbers while women are waiting out the market slowdown," said by Wizard Home Loans who commissioned the research.

From the research shown that the number of Australian men with an investment property dropped by almost 19 per cent from 568,000 in June 2004 to 462,000 in June 2006, showing one in five male property investors quit residential property altogether. However, in the same period, the number of women dipped by less than one per cent from 405,000 to 401,000. In other word, it mean women are selling their investment properties at a rate of only one in one hundred women.

Wizard Home Loans chairman Mark Bouris said the research dispelled the myth that men have more of a foothold in the property market. The research is also further proof that women are closing the gap on male property investors and reaffirms Wizards conviction that women are the new driving force of the Australian property market.

Saujana Zero-Lot – Luxurious hilltop villas

Johor-based Focal Aims Holdings Berhad is embarking on its maiden property development in the Klang Valley. It recently unveiled the RM200 million Saujana Zero-Lot, a freehold gated development over three phases consisting of semi-detached and detached villas (bungalows) and 3 storey shopoffices. The concept of Zero-Lot essentially means one side of the building has its side wall almost on the boundary while the adjoining house is set back from the same boundary. In other words, there is practically zero distance between the boundary line and the building line at one side of the building. The end result is the magnificent transformation of the conventional Semi-Detached that looks like a Bungalow.

Saujana Zero-Lot is located within the most preferred and established up-market neighborhoods such as Saujana Resort. It is easily accessible from Kuala Lumpur and Petaling Jaya via New Klang Valley Expressway (NKVE), Lebuhraya Damansara Puchong (LDP) and Federal Highway.

The Saujana Zero-lot homes come with a 4ft-high perimeter fencing for the garden area, with an open porch. Sited on elevated land, the units will have skyline views of Subang Jaya, Kelab Golf Negara Subang and Glenmarie. The show unit for the project is yet to be ready for viewing.

For the first phase, the 2-1/2 storey semidee villas come with land areas of 4,000 to 5,600 sq.ft. The built-ups of the 4-1 bedroom, 6 bathroom units start from 3,572 sq.ft. and are priced from RM1.6 million. There are discounts on the selling price for early birds.

Petaling Garden Bhd has another upcoming high-end project nearby the Saujana Zero-Lot.

Malaysia Daily Media Highlight

TELCO Sector: WIMAX to be delayed to 2007
The arrival of high-speed wireless broadband, or WiMAX, has been delayed to next year as regulators said they need time to seek new clarification from those who are bidding to become service providers. The result of the tender had been expected to be announced this year. Energy, Water and Communications Minister Datuk Seri Dr Lim Keng Yaik said companies that have submitted applications to include a national rollout plan. The minister said the Government is not in a rush to roll out WiMAX services as WiMAX licenses, what the possibility of launching 2 licenses during the initial stage before releasing the remaining ones. 17 companies bid for the licenses, including Maxis Communications, DiGi, REDtone, MiTV and Nasion Com.

DRB-Hicom/Proton: Confirms interest in the latter’s stake
DRB-Hicom has recently submitted a proposal to the government indication its preliminary interest in the possibility and prospects of acquiring a portion of shares in Proton Holdings. Prime Minister Datuk Seri Abdullah Ahmad Badawi had said on that the government was considering giving approval for German carmaker Volkswagen AG to take up a 51% controlling stake in Proton’s manufacturing operations. (theedgedaily.com)

SCOMI: To be taken private?
Speculation is rife that major shareholders Scomi Group may take the integrated oil services firm private in a bid worth as much as RM1bn. Sources said the main shareholders, who include the son of Prime Minister Datuk Seri Abdullah Ahama Badawi, are considering this as an option as SCOMI’s market price does not reflect its true value. Citing swirling market speculation, bankers said the major shareholders could bid for the rest of SCOMI at a price range of RM1.20 to RM1.50 a share. At RM1.50, SCOMI would be valued at some RM1.5bn. The major shareholders of Scomi are Kamaludin and Shah Hakim. Both hold 34.66% of the company through Kaspadu Sdn Bhd as at May 11, 2006. Frence insurance group AXA is the second biggest shareholder with 6.3%, followed by the Employees Provident Fund with 5.73%. this means that if the main shareholders were to make a bid for the rest of the shares, they might have to fork out some RM976.6m based on an offer of RM1.50 a share. (BT)

PETRA: 67m new shares to list on Nov 15
Petra Perdana’s 67.65m new 50 sen shares arising from its bonus issue will be granted listing and quotation on Nov 15. A Bursa Securities circular said the new shares arose from the bonus issue of 1 new share for every 3 existing shares held. The new bonus shares will increase the paid-up capital by 270.6m to 338.25million shares. (theedgedaily.com)

Boon Koon Group: To fund growth with RM100m Islamic debt
Boon Koon Group is looking to use part of its RM100m Islamic debt securities for its Indonesian operations, acquisitions and the setting up of a Dubai plant, which will allow it to expand its used commercial vehicle business including sales and services centres into other cities in Indonesia, aside from Jakarta, Semarang, Surabaya and Medan to consolidate its position there. It is also looking to set up a reconditioning hub in dubai to tap into the India and, possibly Pakistan market over the next 1-2 years. A company has been engaged to explore the market there. It is also in the process of shifting its factory in Tawau to Kota Kinabalu, involving a capex of RM5m and is expected to be completed by 2Q07. The acquisition of GKY Machinery, which is involved in the rebuilding and distribution of heavy machinery and equipment, is expected to be completed by 1Q07. About 10% of the proceeds from the Islamic debt securities will be used to fund the GKY buy and another 5% - 10% for its fleet expansion. (theedgedaily.com)

MAS: Signs agreement with Russia’s Transaero Airlines
Malaysia Airlines System has signed an agreement with Russia’s Transaero Airlines to operate direct air services between Kuala Lumpur and Moscow from January 2007 through a code share arrangement. The partnership would initially offer 8 scheduled flights from Jan 02, 2007 to March 17, 2007 between Moscow Domodedovo Airport and KLIA using a Boeing 767-300 aircraft, with plans to increase the number of flights. MAS would have direct access to the seat inventory of all Transaero flights between KLIA and Moscow, which would be marketed using MAS flight numbers MH9055 and MH9056. (theedgedaily.com)

MINETEC: Clinches quarry jobs in Indonesia
Minetech Resources’ via its unit KS Chin Minerals Sdn Bhd (KSC) has expanded its operations into Indonesia after it was appointed as the operator and contractor of a quarry in Karimum Island, Indonesia. It has entered into several agreements with Batu Ayer Granite Pte Ltd (BAG) and PT Mirasindo Perdana (PTM) appointing KSC as the operator and contractor with management rights to manage, supervise and/or undertake all quarry operations. Under the deal, KSC would also acquire all quarry products as well as acquire a crusher plant and other quarry equipment from BAG/PTM for RM10.5m. (Bursa)

AIRASIA: Teams up with Fly Asian Xpress
AirAsia has formed a strategic partnership with rural air services (RAS) operator Fly Asian Xpress (FAX) in an effort to provide seamless air travel nationwide. The partnership will see AIRASIA include air routes served by FAX in its list of destinations, thus allowing both airlines to interline operations as well as automatically expand their respective air service network. The move will also allow FAX to leverage on AIRASIA’s massive sales distribution network, including its website. AIRASIA will introduce its Kuala Lumpur – Mulu and Kuala Lumpur – Lahad Datu Flights, which will begin operations on December 01. (BT)

SIX RULES IN PROPERTY INVESTMENT - Rule No 6

Getting SUBJECTIVE inputs or opinion from market experts will give the investor a better idea about the property.

Always ask questions and get others’ opinion: -
• Should I buy or rent housing or business space?
• Should I buy new or purchase existing space?
• What is the best way to finance the purchase?
• Should I renovate/refurbish the existing space?
• Should I sell existing space?
• Is it time to refinance current space?
• Should I invest in an apartment building, office building, shopping centre, vacant land or industrial building?
• To what use should I put the site?

Malaysia Daily Media Highlights

RHBCAP: RHB Islamic Talks with Dallah ended
It was reported that RHB Islamic Bank has broken off talks with Saudi’s Dallah al-Baraka Group, which had been seeking to take a strategic stake in the Islamic lender, RHB Islamic Bank Chairman Datuk Vaseehar Hassan Abdul Razak said. Dallah al-Baraka Group which has a 15% stake in Utama Banking Group (UTAMA) is interested getting a strategic stake in RHB via UTAMA with another Middle Eastern Islamic group.

RESORTS: Star Cruises turns in profit
Star Cruises, a 36% owned associate of Resorts World posted its first profit in four quarters, helped by increased travel demand and the sale of a vessel. Net income rose 83% to SG$60.4m in the three months ended September 30, compared with holidays is helping operators including Star Cruises to counter rising fuel costs. An estimated 11.7mn people will go on cruises this year, an increase of 4.5%, according to the 19-member Cruise Lines International Association. The company’s operating expenses per capacity day dropped 0.4%. Fuel made up 18% of operating expenses in the period, compared with 16% a year earlier. (Bloomberg)

The performance for Star Cruises was strong as group capacity had increased by 17.7% with the inclusion of 2 new ships.

AIRPORT: Looking to expand LCCT
Malaysia Airports Holdings Bhd (MAHB) managing director Datuk Seri Bashir Ahmad said the company would expand the LCCT in three to four years to accommodate the anticipated passenger volume of over 10m a year. He said the budget carrier terminal would be expanded to handle up to 15m passengers annually. He said AirAsia was close to achieving six million passengers this year and believed the low-cost carrier would achieve 10m passengers annually within three to four years.

Express Rail Link Sdn Bhd (ERL) wants to build and operate the proposed KLIA and low cost carrier terminal (LCCT) rail link project to stem a decline in passengers on its high-speed train service to KLIA from KL Sentral. Its chief executive officer, Dr. Aminuddin Adnan, said the company had seen a drop of up to 30% to 4,000 passengers daily from 5,500 since the commencement of the LCCT in March this year. AirAsia passengers used to make up about 30% of our passengers before the LCCT opened. The 13.4km link would shorten travel time between the two terminals to 11 minutes from 20 minutes currently, adding it would take 15 months to complete construction of the link. (theedgedaily.com)

Bolton: Unit sells “The Body Shop” franchise for RM80m
Bolton unit Kejora Harta is disposing 100% stake in Rampai Niaga Sdn Bhd – which holds the “The Body Shop” franchise in Peninsular Malaysia to Rampai Niaga directors Datuk Foong Choong Heng and Datin Cheah Kim Choo for RM80m cash. Bolton will record a gain of RM9.4m from the proposed disposal which was in line with its strategy to sell non-core assets and refocus on property development. (theedgedaily.com)

LFECORP: Secures RM360m contract from Denmark
LFE Corporation unit LFE International LTD has received a letter of intent from Northcom ApS of Denmark for the purchase of electronic equipment for USD$100m. LFECORP had received the letter from Nothcom confirming its intent to enter a contract to purchase computer-processing units, electronic good and digital streaming devices over 36 months, starting on Jan 1, 2007. The contract would see LFE International contribute positively towards the future earnings of the group. (theedgedaily.com)

KUB: Subsidiary awarded RM54m job
KUB Malaysia, 70% subsidiary KUB-Fujitsu Telecommunications (Malaysia) Sdn Bhd has secured a RM54.3m contract from Telekom Malaysia to implement an end-to end service for TM’s metro Ethernet system. The contract was for the supply, delivery, installation, testing, commissioning, and post-acceptance maintenance and support services for the metro Ethernet system. (theedgedaily.com)

YTL Power: Unit is UK’s top water firm
YTL Power International’s wholly-owned utilities company, Wessex Water, has been named Britain’s top water and sewerage company. A report by the UK’s Water Services Regulation Authority (Ofwat) revealed that Wessex Water is the only business to receive the maximum seven stars for customer services for the second successive year. Wessex Water provides water and sewerage to over 2.5m customers within the south west region of England.

Malaysia: Launching of high impact projects in the next 6 months.
Malaysia’s Minister of the Prime Minister Department said the high impact projects approved by the National Implementation Taskforce Meeting chaired by the Price Minister will be launched sequentially in the next six months. He said the Prime Minister is pushing hard for all these projects to commence according to the specific timeline.

Malaysia Daily Media Highlights

Gamuda: Seals Bahrain Job
Gamuda Bhd inked the US$248.75 contract it won in July to build two causeways, associated embankment works flyovers at the Sitra Causeway as well as on Nabih Saleh Island in Bahrain. Gamuda is to build two three-lane causeways, one 200m going north and the other 400m going south, which can be converted into four lanes each in future. The job is scheduled to be completed in 32 months.

The causeway project was announced on the Bursa on 1 August this year to add to its other Middle East projects namely Qatar Airport and Dukhan Highway. Apart from this, Gamuda is also potential to benefit from double tracking rail project (value between RM0.5bn and RM0.9bn) and Pahang-Selangor Interstate Water Transfer and Flood Mitigation Projects.

Airport: Bids for Jeddah Terminal Project
Malaysia Airports Holdings has submitted a RM200mn working plan to upgrade and manage an airport terminal in Saudi Arabia. Sources said MAHB submitted the bid via a joint venture with its Arabian sponsor, Arabian Co for Water & Power Development (ACWA Power). ACWA Power, owned by A. Abunayyan Trading Corp & Al Muhaidib Holding Co, is also the partner for a Malaysian Venture that won the kingdom’s first power and water desalination privatization project. (BT)

MMC: RM7.9bn Islamic financing for Malakoff Bid
MMC Corporation Bhd has proposed to raise RM7.9bn in Islamic debt papers to finance the acquisition of independent power producer Malakoff Bhd and also refinance the latter’s debts. The total acquisition of MMC would total RM9.31bn. MMC said on Nov 10 that its unit, Nucleus Avenue (M) Bhd (NAB), had proposed to issue up to RM1.7bn in nominal value of cumulative non-convertible Islamic junior sukuk and up to RM600mn in Islamic commercial papers and medium term notes. The remaining rM5.6bn would be nominal value of Islamic medium term notes, it said. (theedgedaily.com)

MAS: Secured shareholders’ nod for RPS
Malaysian Airline System has clarified that it had secured its shareholders’ approval for a redeemable preference shares (RPS) option to the exercise, and not a rights issue as reported on Nov 10. The national air carrier said its managing director and chief executive officer Idris Jala was referring to the RPS and did not refer to any rights issue when speaking at the Asia-Pacific and Middle East Aviation Outlook Summit in Singapore on Nov 9. (theedgedaily.com)

International Tender For Pahang – Selangor Raw Water Transfer Project
An international tender for the proposed RM3bn Pahang-Selangor raw water transfer project to be financed through a soft loan from Japan, is expected to be carried out by the middle of next year. Energy, Water and Communications Minister Datuk Seri Dr. Lim Keng Yaik, in stating this, said the cost of the project, which has been delayed for years, would be reduced from RM3.8bn to around RM3bn. This was after the government decided to review the process of appointing the consultant for the project. The project consultant would now be decided through an international competitive tender bidding process instead of direct appointment by the Economic Planning Unit (EPU). he added.

SIX RULES IN PROPERTY INVESTMENT - Rule No 5

Rule No. 5: Do We Follow Strictly the Investment Mantra – Location & Timing?

Timing and Location are always essential criteria for many investors to decide on the investment.

Timing:
From analysis of the property cycle, it is obvious that people buy property no matter in good times or bad times. The timing depends solely on the type of property. During bad economic periods, people still buy houses, hence, the low and medium types of property might not be seriously hit. But during bad times, property such as offices might be affected. Some companies might experience downsizing or shutting down and an over supply of office spaces will be available. This will definitely affect the office rental price. .

Location:
Local knowledge towards the location is more important than strictly following the location mantra. Invest in places that are familiar rather than in a place that is new.

Berjaya Land to co-develop city in Vietnam

Berjaya Land Bhd (BLand) plans to cooperate with Vietnamese state-owned enterprise Tin Nghia Co Ltd in Dong Nai Province to jointly develop the district of Nhon Trach into a city. BLand would be conducting a feasibility study on the proposed project in the next six months after signing a memorandum of understanding (MOU) with Dong Nai’s provincial government on the matter in Kuala Lumpur on Nov 9. Its scope of work in Nhon Trach will include the development of a central business district, residential areas and transportation network.

SIX RULES IN PROPERTY INVESTMENT - Rule No 4

Rule No .4: Understand the Rules of the Game

To be successful in property investment, an investor needs to know the rules in property investment. Generally, there are five main items that the investor must be aware of: -

a. Major Property Legislations that Govern Property Investment/Development in Malaysia

b. Entry and Exit Procedure
Pre-Contract Stage
• Agency appointment
• Advertisement
• Enquiries
• Viewing and negotiation
• Preliminary agreement
• Preparation of contract/option
• Signing of option and payment of option

Contract Stage
• Financing arrangements
• Investigations and title searches
• Signing of contract and payment of deposit
• Signing of transfer instrument subject to undertaking

Post-Contract/Pre Completion Stage
• Purchaser’s solicitor send transfer for stamping
• Lodge caveat
• Repeat Searches
• Prepare completion statement (by Vendor’s Solicitors)

Completion Stage
• Final settlement of outstanding balance and handing over of keys/vacant possession
• Vendor’s solicitors hand over documents
• Registration of transfer
• Real Property Gains Tax Notifications

c. Technical Analysis
Analyzing Investment Environment
• Market conditions, legal and political constraints

Analyzing Investment Returns
• Initial Yield
• Payback Period
• Equity dividend rate
• NPV
• IRR

d. Property Taxation System

e. Financing
• Term loan
• Bridging loan
• Interest rate
• Etc….

Malaysia Daily Media Highlights

Strata Title Act to be amended
Natural Resources and Environment Minister Datuk Seri Azmi Khalid said that developers of gated community projects, unable to get bank loans due to problems of getting strata titles, can heave a sigh of relieve with the Cabinet’s approval to amend the Strata Title Act 1985. He added the other Act would deal with the management and maintenance of high-rise buildings, many of which do not have strata titles due to inadequate provisions in the law. Azmi said with more provisions, strata titles could be issued within two months.

IJM named main contractor for Kajang-Seremban highway
IJM Corp Bhd had been appointed as the main contractor to reactivate works on the RM840 million Kajang-Seremban Highway. The highway concession is now held by Lebuhraya Kajang- Seremban Sdn Bhd (LEKAS), of which IJM holds a 50 per cent stake in the company and the rest held by joint-venture partners Kaseh Lebuh Raya Sdn Bhd, Tunku Naquiyuddin Tuanku Ja'afar and Bumiputera institutions. To fund the project, IJM plans to raise RM750 million local currency bonds within the next three months. With a concession period of 32.5 years, the project, comprising a 48km three-lane dual carriage highway between Kajang and Seremban, is scheduled to be completed within 33 months.

Kumpulan Guthrie sells Guthrie Pavilion for RM26m
Kumpulan Guthrie Bhd is selling its 27,245 sq m Guthrie Pavillion to its subsidiary Guthrie Property Management Sdn Bhd (GPM) for RM26.1 million.