By Farah Wahida:
SP Setia Bhd, UEM Land Holdings Bhd and Mah Sing Group Bhd, among other Malaysian property developers have embarked on a fund raising exercise in order to fund their respective projects, according to RHB Research Institute Sdn Bhd.
“But the fundraising would not be in the immediate term and we are comfortable with their purposes,” it added.
The research house also named other developers that would need financing in the medium term — IJM Land Bhd, Sunway and Eastern & Oriental Bhd.
“We also feel more comfortable given the financing purposes of these three companies,” it said.
It noted that IJM Land would use the proceeds primarily to “fund its The Light Phase 2 commercial project in Penang”, while Sunway will use it to fund the development of its property investment assets in the next three to four years, with Sunway Pinnacle, Sunway Pyramid 3 and Sunway Velocity Mall as the main property assets.
E&O, on the other hand, will use the money for the reclamation and development of Seri Tanjung Pinang 2.
The correction for the property sector ahead of the election will be less drastic considering that the 2008 selldown could be partially caused by the initial outbreak of the subprime crisis in the US, explained RHB Research.
“We expect the physical property market to recover this year, supported by our analysis on population growth cycle and our gross domestic product growth forecast of 5.4 percent for 2013, as well as the influx of liquidity,” it said.
The research house noted that foreign buying could also provide the needed boost in the overall market, as Singapore and Hong Kong continue to roll out measures to curb foreign purchases.
SP Setia Bhd, UEM Land Holdings Bhd and Mah Sing Group Bhd, among other Malaysian property developers have embarked on a fund raising exercise in order to fund their respective projects, according to RHB Research Institute Sdn Bhd.
“But the fundraising would not be in the immediate term and we are comfortable with their purposes,” it added.
The research house also named other developers that would need financing in the medium term — IJM Land Bhd, Sunway and Eastern & Oriental Bhd.
“We also feel more comfortable given the financing purposes of these three companies,” it said.
It noted that IJM Land would use the proceeds primarily to “fund its The Light Phase 2 commercial project in Penang”, while Sunway will use it to fund the development of its property investment assets in the next three to four years, with Sunway Pinnacle, Sunway Pyramid 3 and Sunway Velocity Mall as the main property assets.
E&O, on the other hand, will use the money for the reclamation and development of Seri Tanjung Pinang 2.
The correction for the property sector ahead of the election will be less drastic considering that the 2008 selldown could be partially caused by the initial outbreak of the subprime crisis in the US, explained RHB Research.
“We expect the physical property market to recover this year, supported by our analysis on population growth cycle and our gross domestic product growth forecast of 5.4 percent for 2013, as well as the influx of liquidity,” it said.
The research house noted that foreign buying could also provide the needed boost in the overall market, as Singapore and Hong Kong continue to roll out measures to curb foreign purchases.
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