MRCB Versus DRB (Part 2) By Calvin Tan Research
Author: calvintaneng | Publish date: Wed, 26 Oct 2016, 11:01 PM
Today MRCB up one sen to Rm1.40 while DRBHICOM is down 2 sen to Rm1.40. Now both stocks are on equal footing at Rm1.40
So let the race begin:
Why is Calvin Tan Attracted to MRCB?
Of all lands and assets the MAIN CRITERIA FOR VALUE CREATION IS MAXIMUM USAGE!!
These are the levels of Value Real Estate or Land Can Generate.
1) Lands in desert, highly inaccessible area, mountain, snowcovered tundra or nuclear polluted lands are of little or no value. These don’t serve mankind. So few people want them
2) FARM LANDS. AGRICULTURAL PURPOSES
These have value. You can plant crops and sell them for a profit.
3) FARM LANDS. ANIMAL HUSBANDRY OR REARING FISH OR FOWLS
These command better value. Livestock needs road and accessibility for delivery
4) RESIDENTIAL LANDS
These are converted from Agricultural lands for human habitation. Bangsar, Bandar Utama & Puchong were once rubber estates. Now teeming with expensive houses & buildings.
5) INDUSTRIAL LANDS
Usually located near human habitations are workers are needed. So prices of these lands have appreciated in value. Examples are Section 17 in PJ where F&N Factories are located. Ample workers nearby. However, if population increases with affluency these factory lands will be too valuable. Soon they will be converted high rise high end condos and commercial malls. Examples are the factories along Bkt Timah in Singapore converted to highend condos. Also in Chan Sow Lin. F& N factories converted to Commercial shophouses.
5) COMMERCIAL SHOPS & MALLS
These are lands located near hupe popular areas with HIGH CATCHMENT DENSE HUMAN POPULATION. MIDVALLEY MEGAMALL, ONE UTAMA, IKEA DAMANSARA, IKEA CHERAS, KL. VIVO CITY IN SINGAPORE.
6) TRANSPORT ORIENTED DEVELOPMENT (TOD)
THIS IS THE HIGHEST VALUE CREATION OF ALL! A TRANSIT ORIENTED DEVELOPMENT SERVES THE MAXIMUM NUMBER OF PEOPLE GOING OR PASSING THROUGH IT. THE MORE PEOPLE PASSES THEOUGH IT THE BETTER ITS VALUE!
IN HK SOME OF THE HIGHEST LAND VALUE ARE THOSE NEAR THE BORDER TO SHENZHEN. PRICES PER SQ FT ARE SOME OF THE VERY HIGHEST ON PLANET EARTH DUE TO THE SHEER VOLUME OF PEOPLE FROM CHINA PASSING INTO HONG KONG IN ITS HEYDAY
IN JOHOR ISKANDAR MOST 7 ELEVEN STORES ARE TENANTED AT RM3,000 PER MONTH. LIKE THOSE IN TMN PERLING OR TAMAN MOLEK.
HOWEVER, IN PLACES NEAR THE ZON (BERJAYA WATER FRONT CITY), JOHOR WHERE DAY TOURISTS & NIGHT LIFE CROWDS ARE THERE A TYPICAL 7 ELEVEN STORE IS RENTED FOR RM20,000 A MONTH.
BUT THE HIGHEST PRICE PAID BY 7 ELEVEN FOR A SMALL SHOP IS LOCATED AT CIQ KASTAM SHOPPING COMPLEX.
HERE, TENS OF THOUSANDS OF PEOPLE ARRIVE BY BUS AND TRAIN DAILY – THE RENTAL HERE IS A WHOPPINGRM50,000 A MONTH!
HOW COULD THIS 7 ELEVEN SURVIVE WITH SUCH HIGH RENTAL?
THE ANSWER IS THIS. ON ANY GIVEN DAY ALMOST HALF (50% OR MORE) THE GOODS OR INVENTORY OF THIS STORE IS SOLD OUT!
IN SINGAPORE, ONE GOOD EXAMPLE OF A TRANSIT ORIENTATED DEVELOPMENT IS THE EVER POPULAR JURONG POINT (CALVIN’S FAVOURITE). JURONG POINT IS NOW GOING FOR SALE AT A WHOPPING S$2 BILLIONS OR RM6 BILLIONS
Jurong Point put on market with over S$2b price tag
SINGAPORE’S biggest suburban shopping centre, Jurong Point, has been put up for sale with a price tag exceeding S$2 billion.
This works out to more than S$3,000 per square foot based on the commercial net lettable area of about 658,000 sq ft that is being offered for sale by an equal joint venture between Guthrie GTS and Lee Kim Tah Holdings, both of which have been delisted.
At over S$2 billion, the price tag translates to a sub-4 per cent net yield, Michael Leong, director of sole marketing agent Array Realty, told The Business Times.
Array in turn is working exclusively with JLL to conduct an expressions of interest exercise that will close on Nov 18.
Guthrie and Lee Kim Tah are divesting a total net lettable area of 702,000 sq ft – including 44,000 sq ft of space under the government’s Community/Sports Facilities Scheme (CSFS) which is currently being used by occupiers such as NTUC First Campus Co-operative’s My First Skool and voluntary welfare organisations.
There is a further space of about 59,000 sq ft under three strata retail units divested by Lee Kim Tah and Guthrie about two decades ago to Golden Village, NTUC FairPrice and POSB – taking the total net lettable area in Jurong Point to 761,000 sq ft.
Guthrie and Lee Kim Tah are offering their 702,000 sq ft in the mall through the sale of shares in companies that own this space. “The two partners have owned the property for many years and want to look at pursuing new interests and opportunities,” said Mr Leong. Lee Kim Tah was delisted in early 2015 and Guthrie in November 2013.
Most stockmarket analysts would think that a net yield of 3-plus per cent based on Guthrie and Lee Kim Tah’s asking price is too low to make for a yield-accretive acquisition by Singapore mall Reits (real estate investment trusts).
However, JLL regional director of Singapore capital markets Anthony Barr expects Jurong Point to appeal to a broad range of other institutional investors including sovereign wealth funds, pension funds and insurance groups.
“Rarely do stabilised assets of this scale become available. There have been no comparable sales of a suburban retail property of this size on the open market for more than a decade in Singapore’s tightly held retail sector; other large sales have been either related party transactions involving listed Reits or sales of partial interests.”
A high-performing mall, Jurong Point is regarded as “fortress retail”, he added. “This, combined with the dynamic growth planned for the Jurong district, will ensure a broad range of interest at the indicated pricing.”
Jurong Point is seamlessly linked to the Boon Lay MRT Station and Bus Interchange. It currently draws an average monthly visitorship of six million and has a catchment of 150,000 households within a five-km radius, with potential for growth as the new town planned in Tengah is progressively developed.
Major tenants for the space at Jurong Point owned by Guthrie and Lee Kim Tah include FairPrice Xtra, Courts, Harvey Norman, Uniqlo and Kiddy Palace in addition to three foodcourts. Joining their ranks soon will be BHG, which will open a nearly 50,000 sq ft department store on three levels in December; part of this space was previously occupied by John Little.
The mall is nearly fully let.
Jurong Point stands on two sites; one has a balance lease term of about 76 years and the other, 89 years. Their combined land area is 557,288 sq ft.
The original Jurong Point was completed in 1995 and spans four levels of retail space (Basement 1 to Level three). The CSFS space is on Levels 4, 5 and 6.
The extension, which was completed in 2008, has three retail floors – Basement 1 and Levels 1 and 3.
About 1,000 carpark lots in Jurong Point are available for use by shoppers.
The mall’s total gross floor area (GFA) is 1.07 million sq ft; there is no unutilised GFA.
IN THE 2017 BUDGET SPEECH BY PM NAJIB THERE IS A PROPOSED EASTERN COASTAL HGHWAY FROM KL ALL THE WAY TO TUMPAT IN KELANTAN FOR A RM55 BILLION PROJECT
WHAT WAS ITS PURPOSE?
THE ANSWER IS TO CONNECT IT TO THE MOTHER OF ALL TOD (TRANSIT ORIENTED DEVELOPMENT) CALLED BANDAR MALAYSIA
IT WILL BE A MAMMOTH RM160 BILLION VENTURE & MRCB WILL GET THE LION SHARES
MRCB aims big at Bandar M’sia transport terminal
KUALA LUMPUR: Construction and property firm Malaysian Resources Corp Bhd (MRCB), which has entered into a non-binding memorandum of understanding (MoU) with Wondrous Vista Development Sdn Bhd and IWH CREC Sdn Bhd to collaborate on developing an integrated transportation terminal at Bandar Malaysia, intends to do better than the flagship KL Sentral project in its future projects.
MRCB executive director Mohd Imran Mohd Salim, who spoke to StarBiz following the signing of three agreements related to the multi-billion-ringgit Bandar Malaysia project, said the company was planning to negotiate with the master developer for 60 acres – “hopefully more” – for the development of various commercial development other than just the transport terminal.
IWH CREC – a joint venture between Iskandar Waterfront Holdings Sdn Bhd and China Railway Engineering Corp (CREC) – owns a 60% stake in Bandar Malaysia Sdn Bhd, the master developer and owner of Bandar Malaysia, with the Finance Ministry owning the remainder stake.
MRCB, in a filing with Bursa Malaysia, said the company intended to form a strategic alliance with Wondrous Vista and IWH CREC for the purpose of acquiring, constructing, developing and operating the transportation hub.
“It could be for commercial retail, food and beverage, and hotels. What is important to remember is that MRCB is a transportation developer. We did PJ Sentral and KL Sentral,” Imran said.
He added that the Bandar Malaysia transport terminal could easily make up 35 to 40 acres in size compared to the 10-acre KL Sentral Station. Imran said the company had the capacity and willingness to take on more projects because KL Sentral only has about five acres left to be developed.
“The transport terminal at Bandar Malaysia is a very high-profile one. But we need to iron out issues like acreage, the integrated nature of the development and the density and other factors,” he said, adding that there would be more clarity on the project soon.
“We will come to a decision in six months,” Imran said. The MoU will remain valid for a period of six months or may be terminated at any time by mutual consent.
It was previously reported that 1Malaysia Development Bhd’s sale of the 60% stake in Bandar Malaysia to the IWH-CREC consortium for RM7.41bil would be completed this month.
The 486-acre Bandar Malaysia, located on the former Sungai Besi air force base, will house the Kuala Lumpur-Singapore high-speed rail terminus and become a central transport hub with connections to the mass rapid transit lines, KTM Komuter, Express Rail Link and 12 other highways.
Bandar Malaysia, vide its wholly owned subsidiary, would be the registered owner of 486 acres at Bandar Malaysia, of which 55 to 60 acres have been earmarked for the integrated transportation terminal.
CORPORATE MOVEMENT BY PM NAJIB- THE MINISTER OF FINANCE
AND JUST AFTER THE BUDGET SPEECH PM NAJIB IS LEAVING FOR CHINA TO GET NEEDED FUNDS FOR BANDAR MALAYSIA. WHY SO CRUCIAL? TO GET BACK THE MONIES LOST THROUGH 1MDB. BY THE PROFITS GENERATED FROM BANDAR MALAYSIA PM NAJIB CAN ONCE AGAIN REDEEM HIMSELF AND LIFT HIS HEAD HIGH.
Foreseeing the good prospect of MRCB EPF on August 2016 Bought 17 million MRCB Shares!
EPF already bought 20 million MRCB shares in April 2016!!
And the Surprising Development of all is the Substantial Position Taken by
BANK KERJASAMA RAKYAAT MALAYSIA. IT BOUGHT 172 MILLION (More than 8%) through private placement.
A check with BANK RAKYAAT shows that it was a merger of 11 Banks once came under the supervision of the Ministry of Finance & later changed to Central Bank of Malaysia. So it is a move by Pm Najib?
All these salient factors Point to a Very Exciting Time Ahead for MRCB.
MRCB is now unlocking its assets to play a very important role in the HUGE TRANSIT ORIENTED DEVELOPMENT CALLED BANDAR MALAYSIA WHICH IS ALSO THE CROWNING JEWEL OF THE PROPOSED CHINA SILK ROAD!
Bank Rakyat (Bank Kerjasama Rakyat Malaysia Berhad) is an Islamiccooperative bank which was established on 28 September 1954 under the Cooperative Ordinance of 1948 (Cooperative Societies Act 1993), following the growth of the cooperative movement in Peninsular Malaysia. The bank is an entity under the control of the Ministry of Domestic Trade, Cooperatives and Consumerism since 2004; in 1989 it was controlled by the Ministry of Land and Co-operative Development and the Ministry of Finance and in 2002 changed control to the Central Bank of Malaysia under the Development of Financial Institution Act.
Bank Rakyat is governed by its by laws and Bank Kerjasama Rakyat (M) Berhad Act 1978, which allows Bank Rakyat to provide financing to non-members.
The bank was founded as a result of a merger with 11 union banks. The bank’s first name was Bank Agong (Apex Bank) with the full name Bank Agong Kampong Bekerjasama-sama Persekutuan Tanah Melayu Dengan Tanggongan Berhad and registered under the Cooperative Ordinance 1948. It was first based in Bukit Mertajam, Penang before being moved to Kuala Lumpur in 1964. After being renamed Bank Kerjasama Malaysia Berhad (Bank Kerjasama) in 1967, the bank extend its membership to individuals as well.
And MRCB Has Aready Secured Many TRANSIT DEVELOPMENTS IN PJ, KWASA LAND SG BULOH, PENANG SENTRAL, KL SENTRAL & CYBERJAYA SENTRAL