Property Hunter Magazine Property Hunter Magazine Issue 51 - February 2014 | Page 43

Johor Sultan Buying Stake for RM250m Cash in Berjaya Times Square 22.26ha in Danga Bay for RM376 per sq ft from another developer. Second Penang Bridge Expected to Open in February It is said the estimated sellable floor area of about 3.5 million sq m for the R&F deal worked out to a plot ratio of 7.5 times and that is seen as high, given that the land is worth about RM891 per sq ft. In comparison the Danga Bay plot ratio is 5.22 times. Berjaya Times Square, Kuala Lumpur Fresh from selling six plots of land in Johor Baru for a whopping RM4.5 billion, the Johor Sultan has entered into an agreement to buy a 20% stake in Berjaya Times Square Sdn Bhd (BTS), which among others, owns the Berjaya Times Square Mall in Jalan Imbi, for RM250 million cash according to Star. This is not the first investment the ruler of Johor has made in recent months, as he is seen to be picking up assets and emerging as shareholder in companies. Berjaya Assets Bhd told Bursa Malaysia that it had inked an agreement to dispose of 150 million shares of RM1 each, or a 20% equity stake, in BTS to Sultan Ibrahim Sultan Iskandar. A unit of Berjaya Assets, BTS owns and manages Berjaya Times Square Mall which has a gross built-up area of 7.5 million sq ft on 4.05ha in Jalan Imbi, Kuala Lumpur. The building comprises a 12-level shopping mall, two 46-storey towers of serviced suites and hotel, five levels of basement and 10 floors of annexed carparks. Besides that, BTS is also involved in the operations of carparks and theme park, and its other subsidiary owns and manages Berjaya Waterfront, Johor Baru (formerly known as The Zon in Johor) with properties spreading over 7.28ha of prime land in Johor. Berjaya Assets said the sale allowed it to raise immediate cash and that the Sultan’s entry into BTS would enable him to participate more actively in the future direction and developments of the BTS Group. Berjaya Assets intends to use the proceeds for working capital and future investments. China-based developer Guangzhou R&F Properties Co Ltd bought six plots of land totalling 47ha in Johor Baru from the Sultan for a whopping RM4.5 billion or RM891 per sq ft. It is a record deal as just months earlier another developer from China, Country Garden Holdings Co Ltd, had bought That aside, Berjaya Assets is part of Berjaya Group which is ultimately majority owned by Tan Sri Vincent Tan. He is a long time investor in REDtone International Bhd and in July bought more shares to raise his stake to 13.86%, making him the second largest shareholder in the telco and WiFi infrastructure builder. Earlier in May, the Johor Sultan ended with a 51% equity stake in REDtone Network Sdn Bhd (RN) via a transaction with REDtone International, whose stake in RN has been reduced to 49% from 70%. RN is one of the three companies that was shortlisted by the Malaysian Communications and Multimedia Commission in November last year for the digital terrestrial television broadcast (DTTB) infrastructure contract. An entourage from the Works Ministry on the second Penang bridge The second Penang bridge, which is now 99.9% completed, is expected to be opened to the public in February, said Works Minister Datuk Fadillah Yusof. “Only the construction of two toll plazas in Batu Kawan – one at the Bandar Cassia interchange and the other at the interchange connecting to the NorthSouth Expressway (NSE) – is yet to be completed. “Upon completion, the 28-booth toll plaza in Bandar Cassia will be the largest in the country,” he told a press conference at the China Harbour Engineering Co Ltd (M) Sdn Bhd office in Batu Maung. Currently, the Sungai Besi toll plaza is the largest one in the country with over 18 lanes. The Bandar Cassia toll plaza (PB2X Toll Plaza) will be managed by Jambatan Kedua Sdn Bhd. NSE operator PLUS Expressway Bhd will operate the other one (PLUS Toll Plaza). “The PB2X Toll Plaza is meant for motorists who are not using the NSE, especially the locals who want to commute to the island from the Batu Kawan area. After the construction is done, we have to integrate the system with other highways such as the NSE,” Fadillah said. He added that the bridge would be opened to the public only after it met requirements set by the Malaysian Highway Authority. On talk that toll rates would be increased next year, he said they were subject to review every three to five years and added that the toll rates for the bridge were still at the negotiation stage,. “We have a total of 29 tolled highways in the country and the concession agreements vary. “For example, the NSE is due to be reviewed in 2016,” he said, adding that a few highway tolls would be reviewed next year and the incremental rate would depend on the Federal Government, which would take into account its financial position and the people’s economic situation. The second Penang bridge, spanning 24km with 16.9km over the sea, is expected to ease at least 25% of traffic congestion on Penang Bridge. www.PropertyHunter.com.my 43