Tuesday, June 11, 2013

About Malton ...

Pusat Bandat Damansara Developmnet …

The long drawn out legal battle between a private company belonging to Datuk Desmond Lim and JCorp for the Pusat Bandar Damansara land appears to have moved closer to a settlement.

Malton disclosed that a third supplement agreement was signed between IESB, a private company that is majority owned by Lim and wife and Bukit Damansara Development Sdn Bhd, subsidiary of Damansara Assets Sdn Bhd which is owned by JCorp.

Under the agreement, IESB will pay rm500 million cash and allocate office space totaling 266668 sq ft in the redeveloped PBD land to BDDSB.

The Tan Sri Abdul Ghani Othman is the (ex MB of Johor), is the head of JCorp. While under Ghani, JCorp had taken companies linked to Lim to court over the PBD land. The case has yet to be settled. However, officials close the state said that the latest development suggests that the case may be coming to a close.

According to Malton’s announcement, the allocation of office space to BDDSB will be broken into two segments of 186667 sq ft and 80000 sq ft. BDDSB will assign the office space measuring 186667 sq ft to Khuan Choo Property Management Sdn Bhd, a subsidiary of Malton Bhd, in return for a 20 storey commercial office building known as VSQ located in PJ. The remaining 80000 sq ft of office space is to be delivered to BDDSB within five years from the date IESB acquires the PBD land.

IESB’s preliminary plan is to redevelop the PBD by building five new towers, comprising two office towers and three residential towers, and a suburban retail mall within the office space.

It is a multi billion development which is expected to be completed over seven to eight years.

The PBD land proposals are expected to affect the net assets and gearing of the Malton group. As at June 30 2012, it recorded net assets of rm587.3 million and gearing of 0.27 times. After the assets exchange, the group is expected to have net assets of about rm625.1 million and gearing of 0.25 times.

Bukit Jalil Development …

Ho Hup was in a dispute with Malton Bhd over a development agreement signed earlier by the Lye-led management. The issue was settled in July 2012 when Ho Hup reached a truce with Malton and entered into a new agreement to jointly develop 60 acres of prime land in Bukit Jalil.

Under the new agreement, Ho Hup retains the sole development rights to a 10 acre tract out of 60 acres, with the remaining 50 acres to be jointly developed by Ho Hup and Malton. The former will provide land while the latter will provide capital.

The new agreement also saw Ho Hup, the owner of the 60 acres increasing its entitlement for the GDV of the project to 18%.

Meanwhile Datuk Desmond Lim is planning to build his next big mall in Bukit Jalil.

Property market observers have labeled the new project Pavilion II and say it could be bigger than Mid Valley Megamall.

Pavilion II will be an integral part of a JV development between Lim’s Malton and Ho Hup Construction Co Bhd on 60 acres in Bukit Jalil with a GDV of rm4 billion.

Under the JV agreement, Ho Hup is to develop 4.05ha while Malton gets to develop the remaining 20.33ha with the condition that it shares 18% of the GDV with Ho Hup, which owns the land. This means Ho Hup will own 18% of the mall when it is completed.

After the mall is completed and when its renal income stabilizes, Lim will probably want to inject it into Pavilion REIT.

Lim and his wife Datin Tan control a 37.52% stake in Pavilion REIT.

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