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Lum Chang sells KL site for RM77.2m

Posted on 10 Sep 2009 | Comments Off

PROPERTY development and construction group Lum Chang Holdings has sold a site in Malaysia for RM77.2 million (S$31.5 million) and expects a net gain of about $7.6 million.

The company said yesterday that a subsidiary signed the sales and purchase agreement with Malaysia-incorporated Scenic Point Development to dispose of the plot of land in Kuala Lumpur. The site is located in the city centre area and measures 40,612 sq feet. The selling price works out to around RM1,900 per sq foot. Lum Chang had bought the land to develop a high-rise block of serviced apartments on it. The offer for the land allows the company to ‘realise its investment and further fund its other developments in Malaysia’, it said.

The deal is expected to be completed in December and Lum Chang expects to make a net gain of around $7.6 million, to be reflected in the
current financial year ending June 30, 2010.

Lum Chang shares rose half a cent higher yesterday at 31.5 cents. This is more than two-and-a-half times the counter’s price in March, when it sunk to a low of 12 cents. Continue reading →

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Posted in Construction, Developers, Overseas Property

Tagged Construction, Developers, Land Sales, Overseas Property

Laguna Park ‘too expensive’

Posted on 8 Sep 2009 | Comments Off

Singapore property giant CapitaLand has ruled itself out of bidding for the Laguna Park estate, which was put up for collective sale earlier this week.

CapitaLand’s chief executive Liew Mun Leong said yesterday that the reserve price tag of some $1.2 billion for the estate is “too high to yield affordable homes”. He was speaking on the sidelines of an event to unveil the design of The Interlace, an upcoming CapitaLand project at the site of the former Gillman Heights estate.

Laguna Park, a former HUDC estate at Marine Parade, was launched for tender two years after the idea of an enbloc sale was first mooted. Its marketing agent, Credo Real Estate, said it expects keen competition for the plot, but developer CapitaLand said the asking price is simply too high.

“I’m not very sure that at the end of the day, after paying over $800 per plot ratio, plus construction costs, plus your cost of financing, your break-even cost would be something like $1,500 or $1,600 (per square foot). “Are buyers prepared to pay for it at that location and that price? I am less sanguine than them,” said Mr Liew. Continue reading →