UM Land to lease property to Pegasus

KUALA LUMPUR (May 3) : UNITED MALAYAN LAND BHD [] (UM Land) plans to develop a school within a four ha (10.35 acre) freehold tract within Johor’s Iskandar Malaysia enclave and, subsequently, lease the tract and facility to an education services provider.

In a statement to the bourse, UM Land said it has formalised arrangements with Pegasus Education Group (M) Sdn Bhd which will have the option to purchase the land and education facility.

UM Land said it has signed a land lease and option to purchase property agreements with Pegasus on Thursday. Under the lease agreement, Pegasus will lease the tract for RM1.1 million a year for the first three years, after which, the rental rate will be reviewed for upward revision every three years.

UM Land said the school will be constructed in five phases over eight years till 2020.



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Stocks to watch: UM Land, VS Industry, BCorp, SelProp

KUALA LUMPUR (March 30): Malaysian stocks may find support on Friday from quarter-end window dressing by fund managers on the final trading day of the first quarter. This could spur the FBM KLCI’s advance against the backdrop global economic growth concerns and anticipation of Malaysia’s next general election.

Analysts believe technical dynamics could still push the FBM KLCI to its historical high of 1,597 points, but the crucial question is whether the index can sustain its gains.

“Strategy wise, investors should capitalise on further rallies to take profits and stay nimble, in the wake of volatile external markets as well as ahead of the looming 13th general election,” Hong Leong Investment Bank Bhd research head Low Yee Huap wrote in a note.

The 30-stock FBM KLCI rose 1.69 points to close at 1,585.44 points on Thursday following a volatile trading session.

Stocks to watch on Friday include UNITED MALAYAN LAND BHD [] (UMLand), V.S. Industry Bhd, Berjaya Corp Bhd (BCorp), Selangor PROPERTIES [] Bhd, and CREST BUILDER HOLDINGS BHD []. Other stocks to watch are CypARK RESOURCES BHD [] and HAI-O ENTERPRISE BHD []

UMLand and Iskandar Investment Bhd have signed a collaboration agreement to conduct negotiations which will facilitate UMLand’s plan to acquire and develop tracts in Iskandar Malaysia, Johor .

V.S. Industry, a contract manufacturer of electronic products, said net profit fell 34% to RM6.64 million in the second quarter ended Jan 31, 2012 from RM10.1 million a year earlier, dragged down by lower income from its associates. Revenue, however, rose 4% to RM265.77 million from RM255.51 million.

BCorp’s net profit fell 53% to RM15.28 million in the third quarter ended Jan 31, 2012 from RM32.47 million a year earlier. Bottom line was hurt by operating expenses for its retail business and lower property sales, besides the absence of income from discontinued operations.

Selangor Properties’ net profit fell 89% to RM552,000 in the first quarter ended Jan 31, 2012 from RM5.06 million a year earlier due to currency translation losses.

Crest Builder and joint venture partner Detik Utuh Sdn Bhd will undertake a RM220 million mixed development in collaboration with landowner Syarikat Prasarana Negara Bhd.

Cypark posted net profit of RM6.51 million in the first quarter ended Jan 31, 2012, a marginal 0.6% lower than RM6.55 million a year ago but it remained upbeat for its core business of solid waste management and renewable energy.

Hai-O’s net profit rose 42.8% to RM9.06 million in the third quarter ended Jan 31, 2012 from RM6.34 million a year ago, boosted by its principal subsidiary, the multilevel marketing division. Its revenue increased 8.9% to RM62.79 million from RM57.62 million.

For the nine-month period, its net profit increased 21.6% to RM24.66 million from RM20.28 million in the previous corresponding period. Its revenue rose 2% to RM169.96 million from RM164.99 million.



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UM Land, Iskandar Investment in Medini investment talks

KUALA LUMPUR (March 29): UNITED MALAYAN LAND BHD [] (UMLand) is in talks with Iskandar Investment Bhd over the former’s proposed investment in Medini, Iskandar Malaysia.

UM Land said on Thursday it had entered into a collaboration agreement with Iskandar Investment to negotiate its proposed investment.

Medini is within the Nusajaya development zone, one of the five flagship development of Iskandar Malaysia, the country's engine of growth in the southern region.

Medini, which covers 2,230 acres, is one of Nusajaya’s eight catalyst developments in addition to Johor State New Administration Centre, Puteri Harbour, Southern Industrial and Logistic Cluster, Afiat Healthpark, EduCity, International Destination Resort and Nusajaya Residences.

Iskandar Investment president and CEO Datuk Syed Mohamed Syed Ibrahim said Medini Iskandar was set to be Nusajaya’s central business district.

“The proposed investment by UMLand, which is one of the renowned property developers in the local real estate industry, does not only reflect the attractiveness of Medini as an investment hot spot but will add a new dimension to the vibrancy of the lifestyle development,” he said.



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Kimlun book order at RM1.5b with RM68m housing project

KUALA LUMPUR (March 6): Kimlun Corporation Bhd’s estimated outstanding book order has increased to about RM1.50 billion after it secured a RM68.29 million housing project in Johor Baru.

It said on Tuesday its unit Kimlun Sdn Bhd had accepted a letter of award from UNITED MALAYAN LAND BHD []’s subsidiary Dynasty View Sdn Bhd to construct apartments and ancillary buildings in Johor Baru.

“With the award, the group’s estimated outstanding book order is approximately RM1.5 billion,” it said, adding that work was expected to be completed by December 2014.



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InsiderAsia’s model portfolio - 468

Asian stocks traded broadly higher last week, buoyed by the sustained rally in US markets. US stocks continued with their steady climb since the start of the new year, gaining slowly but surely. The Dow Jones Industrial Average closed at its highest level since mid-2008 last Thursday (at the end of the Asian trading week) and is now just about 10% off its all-time high.

So far this year, global equities have certainly performed far better than most had initially expected. Investors started off with great caution and higher than average holdings in cash. But it appears they are slowly being lured back into the fray.

Thus far, improvement to the underlying US economy has been the strongest confidence booster. Even though growth is still tepid by most measures, there is growing evidence that the economy is gaining traction over the past few months.

One of the key drivers was the slow but steady strengthening in the job market. The US economy added 243,000 jobs in January, the most since mid-2010, while unemployment dipped to a three-year low of 8.3%. Improved employment prospects are expected to underpin consumer spending, the primary growth driver for the world’s largest economy.

Equally important, US corporate earnings are still growing, which in turn are driving stock prices higher while keeping valuations modest. Company balance sheets are strong, many are flush with cash, and operations lean following rounds of cost saving exercises implemented since the recession.

The improving outlook for the US has so far outweighed lingering concerns in Europe. Indeed, it appears that some investors may have been persuaded that even the worst-case scenario of a Greece exit from the eurozone will not be as disastrous as initially feared, and that measures such as the fiscal compact, establishment of the permanent rescue fund ahead of schedule and unlimited, long-term European Central Bank refinancing operations for banks may have built a sufficient firewall around the crisis.



In short, even though it may still be too early to say that market turbulence is a thing of the past, investor confidence has undoubtedly gained ground over the last few weeks. A steadier global market will be positive for the local bourse, and in particular, higher risks but more attractively valued medium and smaller capitalised stocks.

Interest in lower liner stocks too has been quite robust of late. Trading volume on the local bourse surged to a record 4.39 billion shares last Wednesday, with the bulk of the activities focused on penny stocks.

Among the most actively traded was Naim Indah Corp Bhd. In view of the sharp rise in price and volume for the stock, Bursa Malaysia issued a cautionary note to investors last Thursday. Following this, the company requested a one-day suspension in trading pending a material announcement.

The benchmark index added almost 23 points to finish at 1,561.7 last Friday. Market sentiment appears likely to stay firm in the near term. While smaller cap stocks are attracting renewed interest, gains for big cap blue chips may lag on the back of relatively rich valuations. Indeed, unless earnings results for 4QFY11, to be released over the next two weeks, register significant surprises on the upside, the FBM KLCI may continue to lag the regional turnaround.

Portfolio review
Note that this review is for a four-week period from Jan 16.

Stocks in our model portfolio outperformed the benchmark index over the past month. Total market value for our basket of 20 stocks was up by 3.84% to RM439,850, compared with the KLCI’s 2.53% gain.

Fourteen stocks in our portfolio closed higher while five ended in the red and one traded unchanged. Some of our notable gainers include Pantech Group Holdings Bhd (17.3%), Al-Hadharah Boustead REIT (BSDREIT) (9.9%), MyEG Services Bhd (6.3%) and DiGi.Com Bhd (5.9%). At the other end, Al-Aqar Healthcare REIT (-2.5%), Bumi Armada Bhd (-1.7%) and Bonia Corp Bhd (-4.8%) were among the bigger losers for the period under review.

Pantech shares did well after the company reported stronger earnings in its latest 3QFY12 ending February results. We expect earnings will continue to improve, underpinned by higher spending in the oil and gas sector. Pantech’s valuations remain attractive relative to both the industry and broader market.

Prices for BSDREIT also surged. We attribute this to the sharp rise in the real estate investment trust’s net assets following a revaluation of its properties. Net assets per unit rose to RM1.81 as at end-2011, up from RM1.43 at end-September.

Including our cash holdings, for which no interest income is imputed, our total portfolio value was up by a lower 2.38% to RM698,535. Our total profit is very substantial at RM538,535, of which RM400,948 has already been realised from previous shares sales.

Last week’s gain lifted our model portfolio’s cumulative returns since inception to 336.6% on our initial capital of just RM160,000. We continue to outperform the KLCI, which was up by about 141.4% over the same period, by some distance.

We acquired an additional 5,000 shares in Benalec Sdn Bhd, 10,000 shares in United Malayan Land Bhd (UM Land) and 3,000 shares in Alliance Financial Group Bhd (AFG) for a combined RM34,140. UM Land shares are currently trading at just about 0.5 times net assets of RM3 per share and could be up for a re-rating while AFG is trading at a reasonable price-to-net assets ratio, of 1.7 times, relative to the banking sector.

Our cash holdings were pared to RM224,545, following the acquisitions but continue to account for 32% of our total portfolio value. The relatively high percentage is, primarily, for prudence’s sake.


Note: This report is brought to you by Asia Analytica Sdn Bhd, a licensed investment adviser. Please exercise your own judgment or seek professional advice for your specific investment needs. We are not responsible for your investment decisions. Our shareholders, directors and employees may have positions in any of the stocks mentioned.


This article appeared in The Edge Financial Daily, February 13, 2012.



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UMLand builds on education in Iskandar

KUALA LUMPUR: United Malayan Land (UM Land) continues to create more value for its large landbank in Iskandar Malaysia, Johor.

After last month’s purchase of a large tract of land at a low price, UM Land is embarking on a joint venture with Singapore-based Raffles Campus Pte Ltd to build an international school in its Seri Alam township.

As part of the agreement, UM Land will sell 8ha of land to Raffles Campus (Seri Alam) Sdn Bhd (RCSA) — the joint venture company which is 51% owned by UM Land and 49% by Raffles.

The land is being sold for RM10.83 million, or around RM12.61 psf.

Interestingly, while market observers note that the sale price appears relatively low as it is for a joint venture project, UM Land still stands to make a large profit from it. According to the company’s announcement, as at Dec 31, 2010, the net book value of the land was just RM2.4 million, or RM2.80 psf which means the sale price is 4.5 times higher.

This underscores the undervaluation of its large landbank and its stock is trading at half its understated book value. UM Land shares gained seven sen to close at RM1.49 yesterday, half of its book value of RM3 as at Sept 30, 2011.

The land sale follows an earlier announcement to Bursa Malaysia in April on the proposed tie-up to establish the international school. The school will be named Excelsior International School and is expected to be completed in 2013.

Besides making a profit, UM Land will also be able to increase the value of the Bandar Seri Alam land as it adds another educational institution to its list of six.

The “City of Knowledge”, which Bandar Seri Alam has been called, has four universities (Masterskill University College of Health Sciences, Universiti Kuala Lumpur, Universiti Teknologi Mara, HELP University College), two colleges (Mara Junior Science College and Malaysia Art School) and Raffles International School.
Furthermore, there are schools including a Japanese school, Nam Heng Primary School and 16 primary, secondary and religious schools.

The positioning of Seri Alam as a major education hub will significantly increase its appeal, said an analyst, given the various competing developments in Iskandar Malaysia. It will also benefit UM Land’s recently acquired land near Seri Alam at a low price.

On Nov 22, 2011, the company proposed to acquire 135ha of land in the vicinity at a low price of just over RM4 psf through the acquisition of Tentu Teguh Sdn Bhd.
The acquisition will increase UM Land’s landbank in Iskandar Malaysia to almost 810ha, making it one of the largest landowners there, apart from UEM Land Holdings Bhd, which has over 3,600ha.

UM Land, with its large landbank in Iskandar Malaysia, Bangi, Selangor and the KLCC area, has a relatively small market capitalisation of RM450.03 million, while UEM Land’s land bank is five times larger but its market capitalisation of RM9.68 billion is 21 times higher, the analyst noted.

UM Land’s other main township in Iskandar Malaysia is Taman Seri Austin, while its Bangi project, Bandar Seri Putra, also draws more interest as developers like S P Setia Bhd are moving to more outlying areas like Semenyih and Beranang.

Besides attracting Singaporeans, the Iskandar Malaysia region could also be an attractive investment alternative for foreigners discouraged by the recent measures by the Singapore government to cool the property market. Last week, the Singapore government announced a measure which requires foreigners to pay an additional stamp duty of 10% of the property value.

UM Land’s major shareholders include CapitaLand Ltd and Tradewinds Corp Bhd.



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UM Land in JV with Raffles for international school in Johor

KUALA LUMPUR (Dec 12): UNITED MALAYAN LAND BHD [] is teaming up with Raffles Campus Pte Ltd for the proposed development of an international school for use by Raffles as its Johor campus.

It said on Monday UM Land’s unit Seri Alam PROPERTIES [] Sdn Bhd would also sell a piece of freehold land, measuring 19.71 acres, in Plentong, Johor, for RM10.83 million to Raffles.

Elaborating on the deal, UM Land said the shareholders agreement would see both parties setting up a joint venture company, Raffles Campus (Seri Alam) Sdn Bhd to develop an international school for use by Raffles as its Johor campus.

To recap, Raffles is a unit of Singapore’s Strategic TECHNOLOGY [] for Education and Academic Management Pte Ltd which in turn is 70% held by Strategic Foundation Ltd (a not-for-profit organisation).



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Asian markets remain in the red at mid-day on Eurozone jitters

KUALA LUMPUR (Dec 6): Asian markets extended their losses at mid-day on Tuesday, after Standard & Poor's warned that the credit ratings of top-rated European nations may be cut.

The rating agency’s warning brought to a halt a rally in global equities that began last week and had continued on Monday, when the leaders of France and Germany agreed a plan aimed at guiding the region out of its two-year-old crisis, according to Reuters.

The FBM KLCI was down 9.90 points to 1,480.05 at the mid-day break.

Market breadth was negative with losers leading gainers by 404 to 199, while 268 counters traded unchanged. Volume was 1.36 billion shares valued at RM616.77 million.

The ringgit weakened 0.19% to 3.1380 versus the US dollar; crude palm oil futures for the third month delivery fell RM23 per tonne to RM3,103, crude oil slipped 46 cents per barrel to US$100.53 while gold fell US$10.35 an ounce to US$1,712.65.

At the regional markets, Japan’s Nikkei 225 fell 1.23% to 8,588.66, Hong Kong’s Hang Seng Index lost 1.51% to 18,889.76, Taiwan’s Taiex was down 1.2% to 7,012.63, South Korea’s Kospi lost 0.98% to 1,904.11, Singapore’s Straits Times Index fell 0.97% to 2,739.37 and the Shanghai Composite Index shed 0.78% to 2,315.12.

On Bursa Malaysia, KLK fell 34 sen to RM21.64, Batu Kawan and Nestle lost 20 sen each to RM16.90 and RM53, Aeon and Hong Leong Bank down 14 sen each to RM7.21 and RM10.70, CIMB fell 13 sen to RM7.08 while Proton lost 11 sen to RM4.39.

Among the gainers, Dutch Lady added 20 sen to RM25.10, Orient 19 sen to RM4.67, Tradewinds PLANTATION []s 13 sen to RM4.55, United Plantations 12 sen to RM18.48, UM Land 11 sen to RM1.53, Mintye and LPI Capital up 10 sen each to RM1.30 and RM13, Muda 8.5 sen to 95.5 sen and Nylex eight sen to 63 sen.

Utopia was the most actively traded counter with 115.4 million shares done. The stock added two sen to 12 sen.

Other actives included Sanichi, Compugates, Proton securities and DRB-Hicom securities.



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CIMB Research maintains Buy on UM Land, TP RM2.02

KUALA LUMPUR (Nov 24): CIMB Equities Research is maintaining its Buy recommendation on United Malayan Land (UM Land) at target price of RM2.02.

It said on Thursday that UM Land’s nine-month net profit beat market expectations as it was 82% of consensus estimates.

However, for CIMB Research the net profit was at 74% of its full-year forecast.

“We maintain our earnings projections while noting the slight downside risk in the event of further holdups in the launch of its Puteri Harbour serviced apartments.

“No change to our BUY recommendation or target price of RM2.02, which we continue to base on a 40% discount to its RM3.37 RNAV. Potential share price catalysts include 1) more land acquisitions and 2) strong sales for new launches,” it said.



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KL shares close lower

Shares of the following companies had unusual moves in Malaysia trading. Stock symbols are in parentheses and prices are as of the close in Kuala Lumpur.

The FTSE Bursa Malaysia KLCI Index fell 0.3 per cent to 1,468.75, a second day of losses. The gauge declined for the second straight week, dropping 0.6 per cent.

C.I. Holdings Bhd, a beverage group, jumped 5.5 per cent to RM5.22, its highest close since June 6, 2000. The company is proposing to increase the size of its cash distribution to RM5.10 a share.

Century Logistics Holdings Bhd, a transport services provider, climbed 3 per cent to RM1.70, its highest close since Aug. 23. Earnings in the third quarter grew to RM8.99 million.

Equine Capital Bhd, a property developer, increased 6.7 per cent to 56 sen, the steepest gain since April 1. Profit in the second quarter almost doubled to RM12 million from RM6.3 million a year earlier.

iDimension Consolidated Bhd, a Malaysian software developer, rose 1.3 per cent in its debut on the Kuala Lumpur stock exchange today. The stock climbed to 38.5 sen from an initial public offering price of 38 sen.

MWE Holdings Bhd, a yard and fabric manufacturer, increased 1.6 per cent to RM1.25, its highest close this month. Third-quarter profit rose 3 per cent to RM12.5 million.

United Malayan Land Bhd, a Malaysian property developer, gained 2.1 per cent to RM1.44, its biggest increase since Oct. 13. The company agreed to buy Tentu Teguh Sdn Bhd and land in Iskandar, Johor, for RM11 million. -- Bloomberg

UM Land grows Iskandar real estate cheaply

KUALA LUMPUR: United Malayan Land Bhd (UM Land) has proposed to acquire 332.68 acres (133ha) in Iskandar Malaysia, Johor, through the purchase of Tentu Teguh Sdn Bhd. This will expand its landbank there at the low price of just over RM4 per sq ft (psf).

The property development company announced to Bursa Malaysia yesterday that it had entered into a conditional share sale agreement to acquire Tentu Teguh for RM10.98 million cash. Upon completion, Tentu Teguh will become a wholly-owned subsidiary of UM Land.

If the proposal is approved, UM Land will subsequently receive 332.68 acres from Tentu Teguh’s February 2011 purchase from SAP Holdings Bhd.

The 332.68 acres comprise three parcels of freehold land in Felda Cahaya Baru in Johor Bahru. Tentu Teguh bought the land from SAP for RM45 million and has so far paid RM2.55 million.

UM Land will make the remaining payment of RM42.45 million for the land to SAP and Cahaya Baru Development Bhd and will absorb Tentu Teguh’s liabilities up to a maximum of RM9.3 million.

Based on the purchase price, the assumption of Tentu Teguh’s liabilities plus the remaining payments for the land, The Edge Financial Daily estimates the total effective cost to UM Land for the 332.68 acres will be RM62.73 million, or RM4.33 psf.

An analyst deems the price attractive given its strategic location within Iskandar Malaysia and its proximity to the major ports and petroleum hubs in the southern tip of the state.


“[The land] is within close proximity of UM Land’s flagship township Bandar Seri Alam and surrounding developments such as Taman Scientex, Bandar Bistari Perdana, Kota Masai and Lakehill Resort City,” said the company.

The company said fast expanding townships in the vicinity will provide a good base of potential buyers for its proposed developments on the land.

Pasir Gudang Port and the Tanjung Langsat industrial area are also close to the land. Tanjung Langsat is slated to be developed into a port for petrochemicals and non-edible chemicals and storage facilities. Ten multinationals have already committed to invest RM4 billion in the estate over the next few years.

Benalec Holdings Bhd announced yesterday that it had won approval from the Johor government to reclaim 1,760 acres on the coast of Pengerang and 3,485 acres on the Tanjung Piai coast in Johor, close to UM Land’s tract (please see separate story).

Benalec plans to develop the reclaimed land into a hub for petroleum and petrochemicals as well as maritime industrial parks.

Its ambitious plans, the large presence of oil and gas projects on the coast and the growing recognition of Iskandar Malaysia auger well for UM Land’s large landbank in the area.

A market observer notes that UM Land’s cost for the latest piece of land will likely be much lower than Benalec’s reclamation costs for the new project.

In a separate filing yesterday, UM Land announced that it had received approval of its earlier proposal to Bursa Malaysia in August to acquire a 8.89-acre parcel of land in Plentong, Johor, through its indirect wholly-owned subsidiary, PMS Services Sdn Bhd.

The purchase was made with a cash consideration of RM19.37 million, or RM50 psf, from TCB Realty Sdn Bhd.

UM Land said in its proposal filed with Bursa Malaysia in August that it “intends to build a commercial and retail complex to complement the existing amenities and facilities within the township”. The estimated gross development value of the project is RM90 million.

Despite a relatively small market capitalisation of RM426 million, UM Land has a large landbank of close to 2,000 acres located in Iskandar Malaysia and Selangor, as well as several niche projects in downtown Kuala Lumpur.

Its two main townships in Iskandar are Seri Alam and Taman Seri Austin, while its Bangi project is Bandar Seri Putra.

While UEM Land Holdings Bhd is synonymous with Iskandar Malaysia, UM Land is also one of the largest landowners there, with a landbank of around 1,790 acres following the latest purchase.

The company’s major shareholders include CapitaLand Ltd.

UM Land’s shares were untraded yesterday, and last closed at RM1.41. The stock is trading at less than half its net assets per share of RM2.95 as at June 30, after adjusting for a one-for-four bonus issue in August.


This article appeared in The Edge Financial Daily, November 11, 2011.

UMLand to acquire Tentu Teguh for RM10.9m

United Malayan Land Bhd (UMLand) has entered into a conditional share sale agreement (SSA) for the proposed acquisition of the entire equity interest in Tentu Teguh Sdn Bhd (TTSB) for RM10.9 million cash.

UMLand, in a filing to Bursa Malaysia here today said, the proposed acquisition would allow access to the land recently acquired by TTSB in the eastern corridor of Iskandar Malaysia, Johor.

Upon completion of the acquisition, TTSB shall become a wholly-owned subsidiary of UMLand.

The developer said the land would be developed into a self-contained township, comprising residential and commercial properties, complemented by community parks and amenities.

The exercise is expected to be completed within 24 month from the date of the SSA. TTSB is a property investor, incorporated in Malaysia on July 9, 2009. -- Bernama

Utd Malayan gains on acquisitions

United Malayan Land Bhd, a Malaysian property developer, rose the most in almost a month in Kuala Lumpur trading after agreeing to buy Tentu Teguh Sdn Bhd and land in Iskandar, Johor, for RM11 million..

The stock gained 2.8 percent to RM1.45 at 9:30 a.m. local time, set for its biggest increase since Oct. 13. -- Bloomberg

RHB Research ups UEM Land fair value to RM1.65

KUALA LUMPUR: RHB Research Institute has raised the fair value for UEM Land to RM1.65 from RM1.40 but maintains its underperform rating.

It said on Thursday, Oct 27 that due to the growing presence of more “Singapore Inc.” in Johor in the midst of uncertain global economic environment, its optimism on the Iskandar development is revived slightly.

“We therefore narrow our discount to RNAV to 35% (from 45%) to derive our revised fair value of RM1.65 (from RM1.40),” it said.

On Tuesday, UEM Land announced that its 50:50 JV company with UM Land – Nusajaya Consolidated Sdn Bhd had inked two agreements with The Ascott Limited (under Capitaland).

The agreements were for Ascott to provide technical advisory services as well as manage and operate 204 units of service residences to be known as “Somerset Puteri Harbour” in Nusajaya upon its expected completion.

“We believe the strategic tie-up is via UM Land as Capitaland has a 21% stake in the company. This new Somerset will be Ascott first presence in Johor,” it said.

The Ascott to run Somerset Puteri Harbour

KUALA LUMPUR:Nusajaya Consolidated Sdn Bhd (NCSB) has signed two agreements with The Ascott Ltd to provide technical advisory services as well as manage and operate 204 units of serviced residences, to be known as "Somerset Puteri Harbour", in Nusajaya, Johor.

The project will be developed by NCSB, a 50:50 joint venture between United Malayan Land Bhd (UMLand) and UEM Land Bhd (UEM Land), a wholly-owned unit of UEM Land Holdings Bhd.

In a joint statement today, UMLand and UEM Land said Ascott would provide technical advisory services to NCSB during the development of Somerset Puteri Harbour.

"As for the serviced residence management agreement, Ascott will manage and operate the serviced residences on behalf of NCSB upon its expected completion in 2013," it said.

The Somerset Puteri Harbour, a stylish waterfront serviced residence located in the enclave of Puteri Harbour, one of the catalyst developments within Nusajaya, Iskandar Malaysia, will be launched next month.

Somerset Puteri Harbour will be a four-storey serviced residence strategically located at the Puteri Harbour integrated waterfront and marina development in Nusajaya.

The serviced residence offers spacious apartments ranging from studio to three-bedroom units that come fully furnished with modern amenities. -- BERNAMA

Ascott to manage UEM Land JV’s Somerset Puteri Harbour

KUALA LUMPUR: The Ascott Ltd will manage and operate 204 units of service residences, to be known as Somerset Puteri Harbour, in Nusajaya, Iskandar Malaysia under an agreement with Nusajaya Consolidated Sdn Bhd.

Nusajaya Consolidated, a 50:50 joint venture between UEM Land Bhd and UNITED MALAYAN LAND BHD [], had on Tuesday, Oct 25 signed two agreements with Ascott.

UEM Land said under the technical advisory agreement, Ascott will provide technical advisory services to Nusajaya Consolidated during the development of Somerset Puteri Harbour.

Under the serviced residence management agreement, Ascott will manage and operate the serviced residences on behalf of Nusajaya Consolidated when completed in 2013.

Somerset Puteri Harbour will be a four-storey serviced residence at the Puteri Harbour integrated waterfront and marina development in Nusajaya.

The serviced residence offers spacious apartments ranging from studios to three-bedroom units that come fully furnished with modern amenities. With facilities such as a gymnasium, swimming pool, restaurant and residents’ lounge available in the property, Somerset Puteri Harbour provides the ideal home away from home for residents to live, work and play.

UEM Land as the master developer of Nusajaya has set a target for the regional city to come alive by 2012.

To achieve this, it has adopted a strategy to partner several property developers to transform Nusajaya into a world class sustainable city that offers holistic and integrated lifestyle, with immense potential growth for investors.