rm280.25 billion allocated for budget...

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News Highlights

TRX Residences targets 1Q 2018 launch TRX Residences, the residential component of the 17-acre TRX Lifestyle Quarter, is planned to launch in the first quarter of 2018. The TRX Lifestyle Quarter represents one of the components of the 70-acre Tun Razak Exchange (TRX) development, which is envisaged to be a world-class financial district located in the heart of Kuala Lumpur. The mixed development will comprise Grade-A office space as well as residential, hospitality, retail, leisure and cultural components. TRX Residences will constitute six towers of 40 to 57 storeys, offering 2,400 homes in total. The first phase of TRX Residences will comprise 900 units, ranging from 1-bedroom units of 500 sq. ft. to 4-bedroom units of 2,000 sq. ft.

Johan Holdings to develop Puchong land Johan Holdings Berhad plans to develop approximately 6 acres out of the 27-acre land in Meranti Jaya where the ceramic tile manufacturing plant of its subsidiary, Prestige Ceramics Sdn. Bhd. is located. In a Bursa Malaysia announce-ment dated October 2, 2017, Johan Holdings stated that it has applied to the Sepang Municipal Council for a mixed development comprising serviced apartments and comer-cial development. The Gross Development value for said development is projected at RM364.4 million, with the Gross Development Cost estimated at RM294.9 million, giving a projected Gross Development Profit of RM69.5 million.

RM280.25 billion allocated

for Budget 2018

Source: TheEdgeProperty.com TheStar.com.my

Bursa Malaysia

SUITE 1.1, LEVEL 1, BLOCK C, PLAZA DAMANSARA, NO. 45, JALAN MEDAN SETIA, BUKIT DAMANSARA, 50490 KUALA LUMPUR TEL : 03-2095 5811 FAX : 2095 5843

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OCTOBER 2017 ISSUE

On October 27, 2017, Prime Minister Datuk Seri Najib Tun Razak announced the annual budget for the year 2018, with the theme “Prospering an inclusive economy, balancing between worldly and hereafter, for the wellbeing of Rakyat, towards Transformasi Nasional 50 (TN50) aspiration”. A total of RM280.25 billion is allocated for Budget 2018, relative to RM260.8 billion for 2017’s budget. Of which, RM234.25 billion is allocated for operating expenditure, whilst RM46 billion is allocated for development expenditure. >Budget 2018 highlights on Page 3

HSR to open for public inspection In November, MyHSR Corp will open the High Speed Rail (HSR) project connecting Malaysia and Singapore for public inspection for 3 months, until January 31, 2018. Permanent booths featuring station layouts, acquisition plans and technical data will be available at numerous Land Public Transport Commission offices and local councils in Kuala Lumpur, Selangor, Negri Sembilan, Malacca and Johor. Furthermore, there will also be 29 road show booths located at various shopping malls and public places. The railway line spanning 350km will have seven stations in Malaysia located at Bandar Malaysia, Bangi-Putrajaya, Seremban, Melaka, Muar, Batu Pahat and Iskandar Puteri. The sole station in Singapore will be located at Jurong East.

OCTOBER 2017 ISSUE

OCR launches serviced

apartment development in KLCC O&C Resources Berhad has launched its Isola @ KLCC project located along Jalan Yap Kwan Seng on October 7, with units priced at about RM1,900 per sq. ft. Isola @ KLCC will comprise only 140 units, with one unit per floor across four residential blocks. Unit sizes will range from 636 sq. ft. to 3,390 sq. ft. Billy Ong, OCR managing director stated that 40% of the units have been sold, whilst another 40% of units have been booked. The project has a Gross Development Value of RM240 million and is planned for completion by 2021.

Bangsar Market to anchor KLEC Mall SP Setia’s KLEC Mall at KL Eco City will feature Malaysia’s biggest urban grocer when Bangsar Market by Jaya Grocer commences operations in 1Q 2018. Tony Ling, SP Setia divisional general manager stated that the entire second floor of the mall amounting to 54,000 sq. ft. of space is to be occupied by Bangsar Market. According to Ling, the concept is to be underpinned by the mall’s superior accessibility, which allows for ingress and egress from various parts of the KL Eco City development. Bangsar Market will stand out from its competitors with the integration of food and beverage into the concept, offering a myriad of dining selections, Ling added.

News Highlights Bank Negara Monthly

Highlights: September 2017 As published on October 31, 2017


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The ringgit was the best performing regional currency During the month of

September, the ringgit appreciated against all regional currencies by 0.3% to 3.1%, driven by non-resident inflows of RM5.8 billion into the Government Bond market.

Growth in the external sector also improved sentiments towards the Malaysian economy, attracting investor interest in the bond and equity markets.

Towards the end of the month however, equity markets moderated following foreign selling amidst geopolitical uncertainties.

Increase in inflation Headline inflation has risen to

4.3% (August : 3.7%) due to higher fuel prices.

RON95 petrol averaged at RM2.19 per litre, as compared to the average RM2.12 per litre recorded in August.

Higher global refined oil prices were driven by improved demand for crude oil as U.S. oil refineries resumed operations in the aftermath of Hurricane Harvey.

Source: TheEdgeProperty.com TheStar.com.my

Bursa Malaysia

Serba Dinamik Holdings Berhad has proposed to acquire Bangunan Affin Bank in Section 14, Shah Alam for RM43.5 million (analysed at RM532 per sq. ft. over net lettable area). In its Bursa announcement dated October 23, 2017, Serba Dinamik stated that it intends to use the 16-storey building as its head office and house operational staff within Selangor. The relocation would also allow the group to expand the capacity of its training centre in Shah Alam to accommodate more trainees. Moreover, the potential rental income would provide an additional source of recurring income for the Group. The acquisition of Bangunan Affin Bank is expected to be completed in the first quarter of 2018.

Serba Dinamik to purchase Bangunan

Affin Bank for 43.5 million

Bangunan Affin Bank, Section 14, Shah Alam Tenure: Leasehold 99 years Occupancy Rate: 100% (25% occupied by Affin Bank) Land Area: 3,025 sq. m. GFA: 11,057.39 sq. m. NLA: 7,596.78 sq. m. Estimated rental (exc. car park):

RM211,860 per month Estimated car park rental:

RM11,000 per month Analysed Yield: 6.14% >Transaction Details on Page 5

OCTOBER 2017 ISSUE

B, PLAZA DAMANSARA, JALAN MEDAN SETIA, BUKIT

Location of the 16 plots of development land purchased by China Vanke (outlined in red)


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Budget 2018 Highlights

ECONOMIC INDICATORS

In the first half of 2017, the economy recorded a growth of 5.7%, with annual growth estimated between 5.2% and 5.7%, higher than March estimates of between 4.3% and 4.8%

Likewise, the World Bank has revised upwards the Malaysia’s GDP forecasts from 4.9% to 5.2% for 2017

Fiscal deficit is estimated to have reduced to 3% of GDP in 2017 from 6.7% in 2009 and likely to improve to 2.8% in 2018

INFRASTRUCTURE

RM500 million has been allocated to develop and promote tourism through the upgrading of infrastructure facilities and promoting homestay and eco-tourism programmes

The East Coast Rail Link (ECRL), which connects Port Klang to Pengkalan Kubor in Kelantan, will commence construction in January 2018. A total of RM110 million is allocated for the provision of this alternative road to Port Klang to complement the transportation network

MRT2 Line from Sungai Buloh-Serdang-Putrajaya spanning 52 kilometres will command an estimated construction cost of RM32 billion

The constuction of MRT3 or Circle Line will be expedited to be completed by 2025 instead of 2027

Construction of LRT3 connecting Bandar Utama to Johan Setia, Klang is expected to be completed by 2021

The High Speed Rail project connecting Kuala Lumpur and Singapore is envisaged to be completed by 2026. This project is now available for public inspection in various locations

The West Coast Highway from Banting, Selangor to Taiping, Perak is under construction with a projected cost of RM5 billion

RM230 million has been allocated in 2018 for the continued construction works of the Central Spine Road spanning from Raub to Bentong and Gua Musang, Kuantan to Kampung Relong, Pahang

In East Malaysia, RM2 billion is allocated for the Pan Borneo Highway. In Sarawak, all 11 construction packages have been tendered, while five out of 35 packages in the First Phase in Sabah have been awarded, with the remaining 12 under tender

DISPOSABLE INCOME

BR1M will continue to benefit recipients with cash transfer of up to RM1,200

There will be a reduction of two percentage points for income tax bands between RM20,000 and RM70,000

Toll collections will be abolished at Batu Tiga and Sungai Rasau, Selangor; Bukit Kayu Hitam, Kedah and Eastern Dispersal Link, Johor

OCTOBER 2017 ISSUE

SUITE 1.1, LEVEL 1, BLOCK C, PLAZA DAMANSARA, NO. 45, JALAN MEDAN SETIA, BUKIT DAMANSARA, 50490 KUALA LUMPUR

TEL : 03-2095 5811 FAX : 2095 5843 www. jlj.com.my

HOUSING

The Government will be allocating RM2.2 billion for housing, distributed as follows:- 17,300 units of People’s Housing Programme 3,000 units of People’s Friendly Home under SPNB 210,000 units of houses under PR1MA with prices RM250,000 and below. RM1.5 billion

is allocated for the period of two years 25,000 units of 1Malaysia Civil Servants Housing Programme (PPA1M) will be

completed in 2018 while another 128,000 units are at various stages of construction 600 units of MyBeautiful New Homes (MyBNHomes) scheme for B40 households in

Terengganu, Pahang, Melaka, Johor, Sabah and Sarawak as well as Orang Asli settlements 2,000 units under MyDeposit programme to assist down payments as well as MyHomes

programme to enable developers to provide more affordable homes RM200 million allocated for maintenance and refurbishments of houses, including

the1Malaysia Maintenance Fund Step-up financing scheme introduced by PR1MA will be extended to private housing

developers subject to certain criteria Effective from 2018 to 2020, for abandoned housing projects, stamp duty exemption for

loan agreements and letter of consent to transfer are given to rescuing contractors and original owners of abandoned projects

A 50% tax exemption has been proposed on rental income received by residential individuals not exceeding RM2,000 per month for resident individuals

The Government will formulate the Residential Rental Act to protect landlord and tenants

Full transcript available at http://www.treasury.gov.my/pdf/budget/speech/bs18.pdf

OCTOBER 2017 ISSUE

Bangunan Affin Bank, Section 14, Shah Alam Company : Serba Dinamik Holdings Berhad Type : Office Building Seller : Affin Bank Berhad Buyer : Serba Dinamik Group Location : Bangunan Affin Bank, Precinct 3.4, Persiaran Perbandaran, Seksyen 14, 40000

Shah Alam, Selangor Darul Ehsan Details : 16-storey office building with 4 levels of basement car park Land Area : 3,025.00 square metres Gross Floor Area : 11,057.39 square metres Net Lettable Area 7,596.78 square metres Transaction Price : RM 43,500,000 (RM532 per sq. ft. on NLA basis) Date of Transaction : 23.10.2017

Canopy by Hilton, Bukit Bintang City Centre, Kuala Lumpur Company : Hass Holdings Sdn. Bhd. Type : Hotel Seller : BBCC Development Sdn. Bhd. Buyer : Hass Holdings Sdn. Bhd. Location : Bukit Bintang City Centre, Pudu Details : 28-storey 4-star hotel block with 456 rooms Transaction Price : RM 290,000,000 (RM635,965 per room) Date of Transaction : 27.10.2017

Oil palm plantation in Districts of Labuk and Sugut, Sabah Company : Boustead Plantations Berhad Type : Oil palm plantation Seller : Pertama Land & Development Sdn. Bhd. (subsidiary of Duta Land Berhad) Buyer : Boustead Rimba Nilai Sdn. Bhd. (subsidiary of Boustead Plantations Berhad) Location : Districts of Labuk and Sugut, Sandakan Details : 42 parcels of plantation lands cultivated with oil palm, inclusive of buildings,

agricultural equipment, machineries, vehicles and other amenities 86.35% planted area with 64.01% planted with prime mature (10 years to 20

years) palm oil trees Land Area : 28,613 acres Transaction Price : RM750,000,000 (RM26,212 per acre) Date of Transaction : 30.10.2017

MAJOR TRANSACTIONS – OCTOBER 2017


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OCTOBER 2017 ISSUE

This report and other research materials may be requested from us. Questions related to information herein should be directed to the Research Department at the number indicated above. This document has been prepared by Jordan Lee & Jaafar Sdn. Bhd. for general information only. Jordan Lee & Jaafar Sdn. Bhd. makes no guarantees, representation or warranties of any kind, expressed or implied, regarding the information including but not limited to, warranties of content, accuracy and reliability. Interested parties should undertake their own inquiries as to the accuracy of the information. Jordan Lee & Jaafar Sdn. Bhd. excludes unequivocally all inferred or implied terms, conditions and warranties arising out of this document and excludes all liability for loss or damages arising therefrom. Jordan Lee & Jaafar Monthly Bulletin – October 2017 Issue Compiled & Edited by: Chin Shiow Wei & Ew Gene Wern Enquiries: [email protected]


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