CIMB to sell 65 properties to EPF for RM302m

CIMB Group is selling up to 65 properties that house its banking operations to the Employees Provident Fund (EPF) for RM302.4 million in a related-party sale and leaseback deal.

The group, in an announcement yesterday, said the sale will raise cash for CIMB Bank's working capital, reduce its risk-weighted assets by the book value of the properties and reduce its property risks.

Property stocks rally

Sell on price surge rally of property stocks in the next few days.
High end condo developers:
E & O (sell beyond RM1.06), IJM Land (sell beyond RM2.36)
Commercial developers: Glomac (sell beyond RM1.36)
Buy back on price consolidation.

2010 Property Market Grim ???

Looking at the share prices of the major property developer, it looks like the March 2209 rally of the builders stock prices has stalled. I'm seeing sign of reversal in the next few months if there're no catalyst to support prices. Momentum (volume) has dwindled with prices traded markedly lower than their recent high, despite analyst rating of "buy" on the sector.

The housing market has seen asking prices peaking in Dec 2009 but I see dampening prices in next few months into 2010 when the recently announced real property gain tax kicks in. The growth rate of new buyers enquiry will slow, prompting developers to step up their efforts in showcasing their offerings.

Other factors pointing to a slowdown in property market will be rising mortgage rates by banks and cancellation of the interest absorption scheme by developers. Rates increase will means higher repayment on mortgages on both existing lenders and dampened speculative/investment sentiment of new lenders. Some will be able to handle the rising rate. The ones that won't be able, may rush to dump their existing property on the secondary market, adding to the already high inventories level.

What will happen to the property prices then....? And the property counter share prices then...?

E&O sells land adjacent to St. Mary

EASTERN & Oriental Bhd (EOB) has disposed a plot of land in Jalan Tengah, for an undisclosed amount, to Menara Hap Seng Sdn Bhd which will boost its cash position by RM103 million. The sale is in tandem with the group's ongoing strategy to preserve capital and strengthen its balance sheet. Bulk of the proceeds would be channeled to productive projects and investments to maximise returns for the group and, if necessary, facilitate repayment of borrowings, the company said in a statement today.

The company is confident the new owner would continue to appreciate and uphold the planned concept for the 4,700 square metre land which was earlier slated to be developed into a 35-storey commercial tower. The tower, when combined with the St Mary development, is expected to create an integrated commercial development, resulting in the enhanced value of both properties in the Kuala Lumpur business district.

YTL and PDC to build in Penang

THE Penang Development Corporation (PDC) and YTL Land & Development Bhd today signed an agreement to develop luxury apartments on a 1.38-ha land in Lebuh Farquhar, Penang.

Originally, a hotel was to be built on the site by PDC Heritage Hotel Sdn Bhd, a joint venture between YTL Hotels & Properties Sdn Bhd (a wholly-owned subsidiary of YTL Corporation Bhd) and PDC. After the hotel project was shelved due to the economic slowdown, PDC Heritage Hotel sought to change the type of development from hotel to luxury apartment.

Subsequently, it applied to change the type of land holding to freehold and the condition of land use to residential and business.The new project comprises three six-storey 76-unit apartment blocks including an underground basement, a clubhouse and a restaurant.

Of Bridals and Evening Dresses

Time of the year when I get loads of wedding party invitation and seasonal celebrations. And often it's my mate who goes frenzy over what to wear or whether it's time for a custom-made garment.

So for those ladies who're lookin for bridals (just look at the fascinating detailing) or evening dresses, here one young pretty aspiring brilliantly gifted designer's worth chatting with. Her name is Judith

I didn't ask if she's single (hee hee). Check her blog..... http://www.rocca.blog.com/

Tips on how to choose unit trust funds

For those who are willing to park their money in unit trust funds, here a simple helpful article by Mr Ooi Kok Hwa.

UNIT trust funds offer an attractive alternative to retail investors, especially those looking for the benefit of diversification with a small pool of capital while enjoying the possibility of earning higher returns compared with conventional savings.

However, a lot of people have the misconception that the diversification nature of these funds means that the risk of investing in unit trust is low and they can just close their eyes and simply pick any of the funds that come along.

This misconception has led to many paying high prices in learning that as in any type of investments, investing in unit trust funds requires some basic understanding and research before we commit our hard earned money to it.

In general, we can classify the unit trust funds in the market into two major categories: income funds and growth funds. By Mr Ooi Kok Hwa in StarBiz, see full writeup here, http://biz.thestar.com.my/news/story.asp?file=/2009/12/16/business/5308178&sec=business

Real estate investors pick China over Singapore

SINGAPORE, Dec 9 — Singapore’s popularity as one of Asia’s top real estate investment destinations has slipped, according to a new survey of institutional investors by the Urban Land Institute and PricewaterhouseCoopers (PwC).

The report put the Republic in fifth place in the latest rankings of Asia-Pacific cities with the best property investment prospects. It came in second the last time.
The top three cities, overtaking Singapore in the investment league table, are Shanghai, Hong Kong and Beijing respectively, with Seoul in fourth place.

Choo Eng Beng, PwC’s assurance real estate leader, said the results came as no surprise in the light of the remarkable resilience of the Chinese economy.
And Stephen Blank, senior research fellow of finance at the Urban Land Institute, said Singapore’s drop should be put into context, given that the difference between the third, fourth and fifth places was minor.

About 270 industry experts from across the region — including investors, developers, property companies, lenders, brokers and consultants — were questioned about their views on the outlook of the property sector for the survey.
Concern about an oversupply of property in Singapore over the next two years dented the city’s ranking among developers. Experts placed Singapore 11th, compared with seventh last year.
Respondents seemed most bullish about investment prospects for the residential property sector here, whereas other categories, such as retail and office, were placed in the “hold” category.