City&Country: Briefs

EPF, KWAP make first purchase in London
Malaysia’s two main government pension funds have acquired an office building in Britain as part of plans to invest up to £1 billion (RM5 billion) in the British property market. The Employees Provident Fund (EPF) and Kumpulan Wang Persaraan (KWAP) acquired the office building in London for £156.7 million, which translates into a yield of 5.75% and capital value of £802  psf, Jones Lang LaSalle Inc said on Nov 12.

The building was acquired from a consortium that includes Aviva plc, Invista SA, Henderson Global Investors and Liquid Realty Partners.

Tasweek checks out real estate in Malaysia, Singapore
Abu Dhabi-based Tasweek Real Estate Development and Marketing is exploring business opportunities in the property and financial markets of Malaysia and Singapore. According to the Middle East real estate markets consultancy, a recent trip to the two countries revealed sustainable growth in the property sectors. The firm said the Malaysian market has been experiencing a property upsurge, particularly in its high-end residential segment due to the availability of cheap financing, favourable regulations and enticing promotions.

Tasweek chief executive Masood Al Awar, who met local banks to gain more insights into their financing schemes, says the company intends to adopt elements of their financing strategies.

BRDB in the red in 3Q
Bandar Raya Developments Bhd (BRDB) posted a net loss of RM745,000 in 3QFY2010 ended Sept 30, sliding from a net profit of RM40.92 million in the previous corresponding quarter on a drop in revenue. Revenue was 52% lower at RM127.59 million compared with RM267.47 million previously. The weak performance was due to lower income from both BRDB’s property and manufacturing divisions. For the nine months ended Sept 30, BRDB’s earnings rose 7% to RM105.57 million on the back of lower revenue of RM468.76 million.

Paramount 3Q net profit up 32%
Paramount Corp Bhd saw net profit rise 32% to RM21.6 million in 3QFY2010 ended Sept 30 from RM16.27 million a year ago. This was on the back of higher profit margins and contributions from a new development. The group posted revenue of RM98.29 million, down 12% from RM111.6 million a year ago due to lower progress billings.

YTD, the group’s net profit rose 45% to RM63 million from RM43.2 million a year ago, underpinned by an 8% growth in revenue to RM329.3 million from RM300.4 million. This was thanks to brisk sales and higher progress billings from its property developments as well as its construction and education divisions.

Paramount says its prospects for the next quarter are bright in the light of the buoyant property market and unbilled sales brought forward.

“In addition, the gain from the proposed disposal of the group’s 20% equity interest in Jerneh Insurance Bhd is expected to be realised in the said quarter,” it adds.

This article appeared in City & Country, the property pullout of The Edge Malaysia, Issue 833, Nov 22-28, 2010