Wisma Selangor Dredging sold for RM480mil; special dividend in store

Wisma Selangor Dredging sold for RM480mil; special dividend in store

 

KUALA LUMPUR: Selangor Dredging Bhd (SDB) is selling its headquarters Wisma Selangor Dredging, located in the city centre, for RM480mil in cash.
In a filing with Bursa Malaysia, the property developer said it expected to make a gain of RM146.8mil from the proposed sale. This translates into a 32-sen improvement in earnings per share.

SDB said it entered into a conditional agreement on Tuesday to sell the piece of freehold land on Jalan Ampang, along with the four blocks of commercial building on it, to Golden Eagle Realty Sdn Bhd. Golden Eagle is ultimately 99% owned by businessman Tan Sri Koo Yuen Kim.

The 30-year-old Wisma Selangor Dredging has a market value of RM372.1mil (as appraised by an independent valuer as at May 15) and audited net book value of RM318mil (as at March 31 last year).

Two years ago SDB had said it was open to selling Hotel Maya, its property located a stone’s throw away from Wisma Selangor Dredging, but did not give any price indication. Hotel Maya’s net book value as at March 31, 2016, was RM150mil.

“The proposed disposal (of Wisma Selangor Dredging) provides an opportunity for the SDB group to unlock its investment in the subject property and generate immediate cash flow for the group,” the company said.

Of the RM480mil gross proceeds, the largest portion (RM248.75mil) will be used to fully settle the redemption sum owing to Public Bank Bhd to release the existing lien-holder’s caveat and the bank’s interest over the sale property.
A sum of RM103.07mil will be set aside for the SDB group’s working capital and RM80.96mil will be distributed to shareholders via a special cash dividend.

According to this writer’s back-of-the-envelope calculation, the special dividend will be about 19 sen per share based on SDB shares in issue as at March 31, 2016. SDB paid annual dividends ranging from 1.5 sen to 3 sen per share over the last few years.

SDB will also use part of the proceeds – RM19.2mil – to repay bank borrowings, which is expected to result in RM0.96mil in annual interest savings. (SDB has total group borrowings of about RM563.76mil.)

After the proposed disposal, SDB net gearing is expected to fall to 0.05 times compared with 0.33 times as at March 31, 2016.

The counter closed at 96 sen on Tuesday, up 3 sen with 101,200 shares changing hands. SDB share price has gained 17% year-to-date.

Source : http://www.thestar.com.my/business/business-news/2017/06/20/wisma-selangor-dredging-sold-or-rm480mil/

Advertisements

PHB to sell Menara Bumiputra-Commerce in KL

PELABURAN Hartanah Bhd (PHB), which has close to RM6 billion worth of commercial assets and land, has decided to sell its 39-storey Menara Bumiputra-Commerce in Jalan Raja Laut in Kuala Lumpur for as much as RM560 million, sources say.

If sold, the 10-year-old building could be the real estate investment firm-cum-property developer’s first asset sale.

PHB group managing director Datuk Kamalul Arifin Othman declined to comment when contacted by The Edge to confirm whether the asset had been placed on the market.

Although rumours have been circulating for many months now that the building has been put up for sale, it is understood that an agency was hired only recently to seek a purchaser. The Edge understands that PHB has hired real estate agency Rahim & Co to conduct the sale. However, the latter’s director, Robert Ang, declined to comment on the matter as well.

The Edge also understands that PHB may have commenced negotiations with interested parties.

PHB had purchased Menara Bumiputra-Commerce for RM460 million from CIMB Group through a sale and leaseback arrangement in December 2007. CIMB, which wanted to house its then scattered retail banking operation at one location, leased the building for an initial 10 years. The building was ready in early 2009.

Kamalul was then quoted as saying that the purchase assured PHB of steady rental income from CIMB and would allow it to enjoy potential capital appreciation from being the owner of the office tower.

According to PHB’s website, the building has five levels of basement parking, offering 1,122 bays. The total net lettable area of the building is 626,672 sq ft. Based on the NLA, PHB paid about RM730 psf.

Valuers contacted by The Edge say the valuation of Menara Bumiputra-Commerce could be between RM850 psf and RM900 psf, which works out to between RM532 million and RM564 million. Other factors that could determine the pricing are the number of parking bays, if there is a long-term tenancy and recent transactions in the area.

Last month, AmanahRaya Real Estate Investment Trust (ARREIT) purchased the Grade A Vista Tower (with an NLA of 551,875 sq ft) at The Intermark in Jalan Ampang from BlackRock Inc. Based on the purchase consideration of RM430 million, the tower was sold for RM779 psf.

A year ago, Kumpulan Wang Persaraan (Diperbadankan) (KWAP) purchased Menara AIA Cap Square Tower in Jalan Mushi Abdullah — located just 3km from Menara Bumiputra-Commerce — for a reported RM511 million or RM849 psf. This Grade A office building with 461 parking bays was bought from Union Investment Real Estate GmbH. The building has an NLA of 601,796 sq ft.

It is unclear why PHB has decided to sell the building. Sources suggest that the move may be prompted by CIMB’s 10-year lease coming to an end. It is not known if CIMB will be renewing the lease and if so, for how long, and if it will take up less space. “Perhaps PHB feels the time is ripe to recoup its investment,” an industry player says.

PHB may want to use the proceeds from the sale as capital for its planned property development projects. In Kuala Lumpur alone — in Jalan Bangsar and Jalan Conlay — PHB has commenced two major property developments.

According to PHB’s website, it is planning a “sizeable dynamic mixed-use development” in Lot 20001, which is the former Unilever land in Bangsar. The development on the 19.6-acre parcel will be undertaken by PHB’s wholly-owned subsidiary, Bangsar 61 Sdn Bhd.

The Edge had previously reported that the GDV of the project on this piece of land located at the intersection of Jalan Bangsar and Jalan Maarof could be over RM5 billion. A visit to the site shows some activity and land clearing work has commenced.

In Jalan Conlay, PHB is planning an integrated commercial development on a 6.8-acre parcel located near Jalan Bukit Bintang, where the former office of the Kuala Lumpur Regional Centre for Arbitration was located. Industry estimates put the GDV of this project at RM3.8 billion.

In Terengganu, meanwhile, PHB is building a mixed-use development with an estimated GDV of RM700 million.

It is noteworthy that a year ago, PHB hired global real estate service provider Savills (M) Sdn Bhd to look for purchasers for a 790-acre tract it owns in Ulu Bernam, Selangor. The value of the land, located 18km south of Proton City in Tanjung Malim, was estimated at RM206 million or RM6 psf. The Edge understands that this land has not been sold. Moreover, PHB’s website states that it owns land in Tanjung Malim.

The company also has land in Cyberjaya, Petaling Jaya, Klang and Kuala Terengganu.

Source by: http://www.theedgemarkets.com/article/phb-sell-menara-bumiputracommerce-kl

Wisma Selangor Dredging @ KLCC – Prestigious Corporate Office Space for Rent/Lease

Wisma Selangor Dredging @ KLCC – Prestigious Corporate Office Space for Rent/Lease

Selangor Dredging 1

Wisma Selangor Dredging is located in the prime vicinity as KLCC. It is surrounded by all amenities available in the area.

There are 5-Star Accomodation facilities, Financial Hub nearby and F&B outlets nearby walking distance.

It takes less than 3min walk to Suria KLCC.

Asking Rate : RM 5.00 psf

Contact us for a viewing.

My Team specialist in Corporate Office Space and Office Towers, Grade A and MSC Office Space in KL CBD, KLCC, KL City Centre (Integra, Binjai, GTower, Prestige, Pavilion, Intermark, Selangor Dredging), KL Sentral (1 Sentrum, 1 Sentral, Nu Towers, Menara Nu, Menara Shell, Menara CIMB, Quill 7, Plaza Sentral, Platinum Sentral, Vista Sentral), Bangsar South, Bangsar, Petaling Jaya, Puchong, Damansara, Sunway, Shah Alam, I-City.

DISCLAIMER: –

Rental rates and availability are subject to change from time to time without prior notice and subject to the landlord’s final confirmation. Huttons OneWorld Sdn Bhd were not be held liable for any liability or loss incurred due to the use of the above information.

For more information please contact Mr Lim KM at +60-19-288-0689 or kmlim1985@gmail.com

Menara Binjai @ Jalan Binjai – Grade A, Green, MSC Corporate Office Building for Rent/Lease

Menara Binjai @ Jalan Binjai – Grade A, Green, MSC Corporate Office Building for Rent/Lease

Menara Binjai

Menara Binjai is a 35-storey MSC Status Building with Dual Green Certification built to CONQUAS and QLASSIC standards.

It’s strategically located almost adjacent to Ampang Park Station (Kelana Jaya Line) with 5 Star Accomodation (Intercontinental, Double Tree Hilton, G Tower Residency), Banking (Citibank, CIMB, Maybank), F&B (Ampang Park, The Intermark) located within 250m of the building.

Recommended for Multinational Companies with World Class Status, Branding, Appearance.

Rate : RM 9.00 psf

My Team specialist in Corporate Office Space and Office Towers, Grade A and MSC Office Space in KL CBD, KLCC, KL City Centre (Integra, Binjai, GTower, Prestige, Pavilion, Intermark, Selangor Dredging), KL Sentral (1 Sentrum, 1 Sentral, Nu Towers, Menara Nu, Menara Shell, Menara CIMB, Quill 7, Plaza Sentral, Platinum Sentral, Vista Sentral), Bangsar South, Bangsar, Petaling Jaya, Puchong, Damansara, Sunway, Shah Alam, I-City.

For more information please contact Mr Lim KM at +60-19-288-0689 or kmlim1985@gmail.com