By Sharen Kaur
Published: 2009/03/25
Magna Prima Bhd (7617) may build luxury residences or office towers, or both, on the 1.05ha prime site in Jalan Ampang, Kuala Lumpur, which it is buying from a school association.
It is learned that Magna is finalising the development features, which will be market-driven."We are doing a study to decide on the best components. It may be office towers, or commercial and residential mix," an official said on condition of anonymity.The project, worth more than RM1.3 billion, will begin in 2012 and be completed in four years.It will be Magna's single largest development to date and its second project in the Kuala Lumpur City Centre area.The first was the RM300 million Avare condominium, neighbouring the Petronas Twin Towers near Jalan Stonor, launched in 2005."Magna aims to start the project in 2012 as it believes the economic situation will improve by then, thanks to the two stimulus packages launched by the government," the official added.The official said it may construct the buildings on its own, or in a venture with a reputable firm to be identified later.
Magna is buying the land on which the 44-year-old Lai Meng Primary School and Kindergarten sits from the Lai Meng Girls School Association for RM148 million.
It may use its own funds as well as borrow to pay for the land, the official said.Under the agreement, Magna is to rebuild the school and kindergarten on land it owns.It is unclear where Magna will rebuild the school.The company has pockets of land in Bukit Jalil and Jalan Kuching, Kuala Lumpur."We have not decided on the location. We will call for open tender to build the school, which will be at a choice location," the official said.
Analysts, who declined to be named, said that Magna is acquiring the land at a fair price and may sell the properties for between RM950 and RM1,000 per sq ft."Assuming 10 times plot ratio, construction cost of RM400 per sq ft and 80 per cent efficiency ratio, it would potentially translate into a total redevelopment cost of RM660 per sq ft, with average selling price of RM950 per sq ft, at 30 per cent margin," said an analyst.
Showing posts with label Jalan Ampang Hilir. Show all posts
Showing posts with label Jalan Ampang Hilir. Show all posts
Wednesday, March 25, 2009
Tuesday, December 23, 2008
EPF consortium likely to buy government land around KL
EPF consortium likely to buy government land around KL
MI
KUALA LUMPUR, Dec 23 — The Employees Provident Fund could end owning three of the best pieces of real estate in the Klang Valley — and in the process boost government coffers by several billion ringgit.
Government sources told The Malaysian Insider that an EPF-led consortium is a cusp away from snaring the 204 acres in Jalan Cochrane while the EPF with its unmatched financial muscle is the clear favourite to buy a tract of land at the sought-after Rubber Research Institute of Malaysia in Sungai Buloh and Jalan Ampang.
In November, Finance Minister Datuk Seri Najib Razak announced that the government would be monetising some of its assets, including pieces of valuable real estate. For a start, government-owned land in Jalan Cochrane, Sungai Buloh and Jalan Ampang would be placed on the market.
This news created a buzz in the market because the land in Jalan Cochrane and Sungai Buloh has been eyed by prominent politicians and well-connected businessmen for years. Property consultants have valued the three pieces of land at between RM8 and RM12 per square foot (Sungai Buloh); RM150 and RM250 (Ampang) and RM100 and RM200 (Jalan Cochrane).
In a recent article in the Edge Financial Daily, a few property developers gave the Cochrane land the thumbs-up for its location and size, expecting the land value to increase to RM250psf if it is parceled into smaller plots while several others favoured the Ampang Hilir land, noting its proximity to the exclusive U Thant area puts a premium on this tract.
Government sources said that the EPF and several property players including MRCB have submitted a master plan to the government to develop the Cochrane area. With crude oil price hovering around US$50 per barrel and the drop in palm oil price, the government's ability to collect revenue will be severely challenged in 2009.
At the same time, the government will have to spend more and consider launching more stimulus packages to boost domestic demand and cushion the impact of the global economic crunch on the Malaysian economy. Faced with these twin challenges, the administration is looking at monetising its assets to raise funds. Property developers have valued the three pieces of land at about RM3 billion.
MI
KUALA LUMPUR, Dec 23 — The Employees Provident Fund could end owning three of the best pieces of real estate in the Klang Valley — and in the process boost government coffers by several billion ringgit.
Government sources told The Malaysian Insider that an EPF-led consortium is a cusp away from snaring the 204 acres in Jalan Cochrane while the EPF with its unmatched financial muscle is the clear favourite to buy a tract of land at the sought-after Rubber Research Institute of Malaysia in Sungai Buloh and Jalan Ampang.
In November, Finance Minister Datuk Seri Najib Razak announced that the government would be monetising some of its assets, including pieces of valuable real estate. For a start, government-owned land in Jalan Cochrane, Sungai Buloh and Jalan Ampang would be placed on the market.
This news created a buzz in the market because the land in Jalan Cochrane and Sungai Buloh has been eyed by prominent politicians and well-connected businessmen for years. Property consultants have valued the three pieces of land at between RM8 and RM12 per square foot (Sungai Buloh); RM150 and RM250 (Ampang) and RM100 and RM200 (Jalan Cochrane).
In a recent article in the Edge Financial Daily, a few property developers gave the Cochrane land the thumbs-up for its location and size, expecting the land value to increase to RM250psf if it is parceled into smaller plots while several others favoured the Ampang Hilir land, noting its proximity to the exclusive U Thant area puts a premium on this tract.
Government sources said that the EPF and several property players including MRCB have submitted a master plan to the government to develop the Cochrane area. With crude oil price hovering around US$50 per barrel and the drop in palm oil price, the government's ability to collect revenue will be severely challenged in 2009.
At the same time, the government will have to spend more and consider launching more stimulus packages to boost domestic demand and cushion the impact of the global economic crunch on the Malaysian economy. Faced with these twin challenges, the administration is looking at monetising its assets to raise funds. Property developers have valued the three pieces of land at about RM3 billion.
Monday, November 17, 2008
GOVT looking at assets to raise revenue
Malaysian Insider
Government looking at assets to raise extra revenue
KUALA LUMPUR, Nov 11 - Desperate times call for unusual measures of raising revenue and drumming up investment. This appears to be the mantra of the Economic Council as it readies the country for slower growth and tougher times, and revisits areas and policies long considered sacred.
For a start, the government is:
# Surveying all the assets it owns – lands, shares in government-linked companies, infrastructure – and assessing which can be monetised.
# Planning to overhaul the Malaysia My Second Home programme to make it easier for foreigners to buy property here. It is also considering allowing those with professional qualifications and above 50 years old to work on a part-time basis. In this way, Malaysian industry can benefit from the skills and knowledge of some of these foreigners who have settled here under the programme.
# Going to make it easier for knowledge workers and their spouses to obtain permits to work in Malaysia. This move will address the lack of talent in several fields including biotechnology which has held back the inflow of investments from abroad.
The Economic Council, which consists representatives from the Cabinet, public sector and corporate captains, was set up a few months ago to come up with strategies to cushion the impact of the global economic turmoil on Malaysia. The 40-member council met yesterday to discuss the state of the economy and structural changes that the country needs to make.
The Malaysian Insider has learnt that the Finance Ministry is conducting an audit of assets that it owns or has a stake in. This will not be the first time that the government is mulling the possibility of raising cash by disposing of its assets. In the past, senior government officials also raised this possibility but it was shot down by more conservative elements who argued that there was little need for such a drastic approach given the steady flow of revenue from Petronas and other sources of growth.
But with crude oil prices slumping, revenue from palm oil likely to be flat and the budget deficit slated to become the highest the in the region at 4.8 per cent of the Gross Domestic Product (GDP), the administration has little choice but to generate revenue from idle assets.
In the stimulus package unveiled by Finance Minister Datuk Seri Najib Razak last week, the government said that it would develop several tracts of land in Sungai Buloh, Jalan Cochrane and Jalan Ampang Hilir. Under this plan, private developers or government-linked companies can bid for parcels of land and then develop it according to a masterplan for the whole area.
Only after the first parcel has been developed, will the government consider selling or leasing the second parcel, presumably at a much higher price than the first parcel. At a roundtable discussion organised by The Edge last week, Datuk Azman Yahya, a member of the Economic Council, said that the government should have a listing of the assets it owns.
“Monetising these assets means many things… it could include selling and leasing back of buildings, sale of property or through leases, you know…It also can be done in a way that the government does not lose ownership in the long run,’’ he said.
Apart from land, the Finance Ministry, Khazanah Nasional and Perbadanan Nasional Berhad also own stakes in companies and government-linked companies including Sime Darby, Tenaga Nasional Berhad and Maybank.
Government looking at assets to raise extra revenue
KUALA LUMPUR, Nov 11 - Desperate times call for unusual measures of raising revenue and drumming up investment. This appears to be the mantra of the Economic Council as it readies the country for slower growth and tougher times, and revisits areas and policies long considered sacred.
For a start, the government is:
# Surveying all the assets it owns – lands, shares in government-linked companies, infrastructure – and assessing which can be monetised.
# Planning to overhaul the Malaysia My Second Home programme to make it easier for foreigners to buy property here. It is also considering allowing those with professional qualifications and above 50 years old to work on a part-time basis. In this way, Malaysian industry can benefit from the skills and knowledge of some of these foreigners who have settled here under the programme.
# Going to make it easier for knowledge workers and their spouses to obtain permits to work in Malaysia. This move will address the lack of talent in several fields including biotechnology which has held back the inflow of investments from abroad.
The Economic Council, which consists representatives from the Cabinet, public sector and corporate captains, was set up a few months ago to come up with strategies to cushion the impact of the global economic turmoil on Malaysia. The 40-member council met yesterday to discuss the state of the economy and structural changes that the country needs to make.
The Malaysian Insider has learnt that the Finance Ministry is conducting an audit of assets that it owns or has a stake in. This will not be the first time that the government is mulling the possibility of raising cash by disposing of its assets. In the past, senior government officials also raised this possibility but it was shot down by more conservative elements who argued that there was little need for such a drastic approach given the steady flow of revenue from Petronas and other sources of growth.
But with crude oil prices slumping, revenue from palm oil likely to be flat and the budget deficit slated to become the highest the in the region at 4.8 per cent of the Gross Domestic Product (GDP), the administration has little choice but to generate revenue from idle assets.
In the stimulus package unveiled by Finance Minister Datuk Seri Najib Razak last week, the government said that it would develop several tracts of land in Sungai Buloh, Jalan Cochrane and Jalan Ampang Hilir. Under this plan, private developers or government-linked companies can bid for parcels of land and then develop it according to a masterplan for the whole area.
Only after the first parcel has been developed, will the government consider selling or leasing the second parcel, presumably at a much higher price than the first parcel. At a roundtable discussion organised by The Edge last week, Datuk Azman Yahya, a member of the Economic Council, said that the government should have a listing of the assets it owns.
“Monetising these assets means many things… it could include selling and leasing back of buildings, sale of property or through leases, you know…It also can be done in a way that the government does not lose ownership in the long run,’’ he said.
Apart from land, the Finance Ministry, Khazanah Nasional and Perbadanan Nasional Berhad also own stakes in companies and government-linked companies including Sime Darby, Tenaga Nasional Berhad and Maybank.
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