Apr 02, 2015 Last Updated 6:47 AM, Apr 1, 2015

News

KUALA LUMPUR: Seacera Group Bhd is expected to develop a township-concept project on a 202.34-hectare site in Hulu Langat with a gross development value (GDV) of more than RM10bil.

Group Managing Director Zulkarnin Ariffin said the manufacturing company would develop the land either on its own or through a partnership. 

He said Seaceras project would definitely be higher in value than other RM10bil GDV worth of projects in the area. 

We think this project will be a success because our land is nearer to the city than other properties which are located further away. 

The take up is expected to be good, if the positive respond received by other developers in the area is anything to go by, he told a press conference after the companys extraordinary general meeting (EGM) here today. 

Zulkarnin said details of the project would be made public once the company has a concrete decision and as per restricted under the regulators' rule. 

On the EGM, he said Seacera received the shareholders approval to acquire a 15.23-hectare land in Melaka from Sri Alai Sdn Bhd for RM32.75mil. 

The acquisition was entered into through Seaceras 51% subsidiary, Seacera Land Sdn Bhd. 

The shareholders also approved the proposed diversification of the company and its subsidiaries' businesses into property development and construction activities. 

The company has a landbank of 242.8 hectares.

Commenting on the companys target to achieve a RM1bil market capitalisation by 2019, he said it is on track. 

We have another four years and we should be able to achieve that with our plans in hands like expanding our existing business and do some potential development projects, he added. 

The company's market capitalisation currently stood at RM160mil

 

 

 

source: The Star

KUALA LUMPUR: Amcorp Properties Bhd is teaming up with Temasek and two other companies to acquire two London properties for £308mil (RM1.69bil).

In a filing with Bursa Malaysia on March 28, Amcorp said it had inked a joint venture with Temasek, Hotel Properties Ltd (HPL) and UK-based developer Native Land (NL) to jointly develop Sampson House and Ludgate House in the heart of London’s South Bank, along River Thames.

Amcorp Properties said the deal would see the establishment of a joint-venture (JV) company, Bankside Quarter (Jersey) Ltd, with Amcorp Properties, Temasek and HPL respectively owning 30% stake while NL would own the remaining 10%.

Bankside Quarter would undertake a mixed-use redevelopment project.

“With an estimated gross development value of £1bil (RM5.5bil), the project when completed will transform the high traffic location on the South Bank into a landmark riverside destination along the River Thames,” said Amcorp Properties.

It said the JV was part of a “strategic move” by the group to expand its property portfolio in central London and was in line with the group’s vision of being an internationally admired property investment company.

It added that the JV provided an opportunity to continue the strong partnership with its existing reputable partners, HPL and NL, with which it had developed high-profile residential development in prestigious areas of prime Central London such as Kensington, Mayfair and South Bank as well as the opportunity to partner with Temasek.

PUTRAJAYA: Property developers have no reason to raise prices of houses from April 1 because they can claim back the costs incurred through taxable supplies under the Goods and Services Tax (GST).

Raizam Mustapha, Customs Department’s senior assistant director (property, construction and professionals), said developers could claim Input Tax Credit (ITC) for commercial properties and also for the GST incurred for infrastructural and recreational works of mixed development projects.

“All raw materials, some of which were not taxed under the Sales and Services Tax (SST), will now be taxable.

“Under the SST, materials such as floor tiles, pipes, fittings and paint were taxed between 5% and 10%, and these were not claimable from the Government.

 

“When the GST comes into effect, a 6% tax rate will be imposed on the materials but the ability to claim under the ITC means developers will see some savings,” she told a media briefing yesterday.

Among the items that would be newly taxed under the GST are cement, bricks and steel, in addition to construction work by contractors.

The Customs Department had announced that there would only be an impact of between 0.5% and 2% on housing prices, if there were no changes in supply and demand.

Raizam said the ITC was expected to serve as the stabilising factor to ensure that property prices in the country did not rise drastically.

On maintenance fees for stratified residential properties, Raizam said that as they were exempted from the GST, changes in fees would be decided by the building management committees.

“If they get services from companies which do not have to register for the GST, these firms cannot impose 6% charges on management committees,” she said.

Deputy Finance Minister Datuk Chua Tee Yong, who was at the briefing, later noted that property prices, especially in the cities, had been rising at a rate of over 6% yearly.

“The number of property launches have declined and the cost of building materials has also stabilised. This will help maintain the market price,” he said.

Asked to comment on those who had rushed to buy properties before the GST for fear of high prices, Chua said those giving such advice were not accurate.

“Look at the past few years, even without the GST, property prices have been on the rise. External factors, like state government policies, have also had an influence on the market prices of properties,” he added.

Chua said that ultimately, it was up to the developers to determine if the increased costs under the GST, estimated at between 1% and 2%, would lead to a price hike.

“Some developers may determine they can make a profit and impose a higher price on the properties, while some may believe they cannot sell as many and decide to absorb the costs,” he said.