Malaysia: KWAP buys land for $33.7m; Tropicana sells tower for $33.7m; JAG picks property

KWAP was established to manage fund contributions from the Federal Government, statutory bodies, local authorities and other agencies

Malaysia reported quite a few property transactions during the course of last week involving a pension fund and a couple of realty players.

KWAP buys federal govt land for $33.74m

Malaysia pension fund Kumpulan Wang Persaraan (Diperbadankan) (KWAP) has acquired a development land from the federal government on Persiaran Stonor in Kuala Lumpur city for MYR140 million ($33.74 million), translating to MYR2,578 per sq ft.

In a statement, KWAP chief executive officer Wan Kamaruzaman Wan Ahmad said, the land is projected to generate good long-term returns for the pension fund, with a projected gross development value of MYR780 million.

Spanning 5,048 sq m (54,336 sq ft), the dual frontage land is located strategically within a short walking distance to the city centre, light rail transit stations, and future mass rapid transit stations, and is a stone’s throw to the Prince Court Medical Centre.

KWAP owns and co-owns 13 properties, seven of which are in Australia, three in the United Kingdom and three properties in Malaysia. The acquisition is the fund’s second local land purchase.

Tropicana sells Dijaya Plaza for $33.74m

Tropicana Corp Bhd is disposing off its Dijaya Plaza tower in Jalan Tun Razak, Kuala Lumpur city centre to Kenanga Investment Bank Bhd for MYR140 million ($33.74 million) cash.

The property developer said, the net proceeds of MYR51.6 million ($12.43 million) will be used for working capital and/or to repay bank borrowings of Tropicana Group.

“Based on Tropicana’s unaudited results as at September 30, 2015, the group’s total borrowings will  be reduced from MYR1.75 billion to RM1.66 billion, resulting in further improvements in the net gearing position of Tropicana,” it said, in a statement.

Tropicana added that the asset sale comprises a piece of freehold land measuring 3,674 sq m, together with an en bloc 19-storeyed office tower with two levels of basement car park consisting of 322 parking bays.

In a filing with Bursa Malaysia, Tropicana said, the original cost of investment was RM110.62 million. The building’s net book value stood at MYR130 million as at December 31, 2014.

The building, with a total net lettable area of 156,488 sq ft, is currently 70 per cent occupied.

JAG to buy land for $2.38m

JAG Bhd’s wholly owned subsidiary JAG Land Sdn Bhd has entered into a sale and purchase agreement with Chewway Heavy Machinery Sdn Bhd to purchase a parcel of freehold land in Klang measuring 13,489.5 sq m (3.3 acres) for MYR9.87 million ($2.38 million).

In a filing with Bursa Malaysia, JAG said, the proposed acquisition of land is for property investment and/or development purposes.

“The land has development potential and commercial value in view of demographic profile and its shape, and is near to and on the same row as the Sentosa Specialist Hospital and NSK wholesale market,” the group said in its announcement, noting that it is expected to enhance the future earnings of JAG and its subsidiaries.

Also Read:

Malaysia pension fund KWAP to sell London office asset for $399m

Malaysia’s KWAP invests $265m in London mall

MY Dealbook: Multi Sports new substantial shareholder, Khazanah’s 15% in Aemulus, Tropicana scraps Johor land deal, Dominant buys Johor land

MY Dealbook: Tropicana sells Tenaga Kimia; Mitrajaya acquires Optimax; Mclean buys DWZ Industries; Sentoria places out 2.2% stake

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.