Property

Property developer Eco World Development Group Bhd has launched a RM1.878 billion unrated medium-term note (MTN) programme to help fund land acquisition and the development of its build-to-lease data centre project in Selangor. According to a Bursa Malaysia filing on Thursday, the MTN programme was set up under EcoWorld’s wholly-owned subsidiary, Quantum Alpha Sdn Bhd (QASB), which is leading the data centre initiative. The first tranche of RM3.58 million was issued on Thursday. EcoWorld said the notes, to be issued periodically, were fully subscribed by a major local financial institution, demonstrating “strong investor confidence in the group’s credit profile and the long-term potential of the data centre project.” QASB signed a build-and-lease agreement in February with Pearl Computing Malaysia Sdn Bhd, a Google affiliate, to develop and lease data centres within Eco Business Park V in Puncak Alam, Selangor. Under the agreement, QASB will construct the shell and core structures of the data centres on 92.44 acres of land according to the lessee’s specifications. The project, expected to be completed in 2027, will be leased to Pearl Computing for an initial 20-year term, with total rent projected at up to RM4.8 billion and a 10-year renewal option. At the same time, EcoWorld also sold 58.19 acres of industrial land within the park to Pearl Computing for RM266.1 million. The group confirmed on Thursday that discussions are ongoing with potential institutional investors interested in participating in the data centre development. Any investment could involve taking a stake in QASB, though EcoWorld plans to retain up to 80% ownership of the unit. EcoWorld shares closed unchanged at RM2.08 on Thursday, giving the group a market value of RM6.66 billion. Year-to-date, the share price has fallen nearly 3%.

Oriental Holdings Bhd is set to acquire three Malaysian hotels from its major shareholder, the Loh family, for RM411 million in cash, strengthening its domestic hospitality portfolio. The group, which also distributes Honda vehicles in Malaysia, will buy Bayview Beach Resort Penang for RM167 million and Bayview Hotel Georgetown for RM153 million from Boon Siew Sdn Bhd, a company owned by the Loh family. Bayview Hotel Langkawi will be acquired from Boon Siew Development Sdn Bhd for RM91 million. Oriental noted in a filing that the purchase prices are below independent valuations. The acquisitions will increase Oriental’s domestic hotel count from one to four, diversifying its hospitality segment, which previously contributed only 4% of the hotels and resorts revenue in FY2024. Globally, the group now owns seven hotels. Oriental plans to spend RM210.73 million refurbishing and rebranding the properties: RM107.62 million for Bayview Beach Resort Penang (to become Ascott Batu Ferringhi Penang), RM92.2 million for Bayview Hotel Georgetown (Oakwood Georgetown Penang), and RM10.79 million for Bayview Hotel Langkawi (FOX Hotel Langkawi). The deal, expected to close in Q3 2026, requires approval from non-interested shareholders at an extraordinary general meeting. Oriental shares ended unchanged at RM6.82, valuing the group at RM4.23 billion.

Axis Real Estate Investment Trust (Axis-REIT) is garnering positive attention from analysts following its proposal to acquire an industrial property in Seberang Perai, Penang, from Ann Joo Resources Bhd for RM800 million. The proposed acquisition, if completed, would further strengthen Axis-REIT’s portfolio, which is already diversified across industrial, retail, and office assets in Malaysia. Market watchers noted that the addition of a high-value industrial property aligns with the trust’s strategy to expand its footprint in the industrial sector, which has been resilient amid ongoing demand for logistics and manufacturing spaces. Analysts said the acquisition could potentially enhance Axis-REIT’s long-term income stream and asset base. “This is a strategic move that reinforces Axis-REIT’s position in the industrial property market, especially in a key logistics hub like Penang,” one analyst said. The trust’s management has indicated that the acquisition will be funded through a combination of debt and internal resources, ensuring minimal impact on its gearing levels. Axis-REIT’s portfolio currently has a healthy occupancy rate, and the inclusion of the new property is expected to contribute positively to future distributable income. Investors responded favorably to the announcement, with Axis-REIT shares experiencing an uptick in early trading. The proposal also highlights the ongoing appetite for prime industrial assets in Malaysia, particularly in strategic locations such as Seberang Perai, which continues to attract local and foreign investment. Axis-REIT’s management has stated that the acquisition remains subject to regulatory approvals and due diligence, with the trust committed to completing the transaction in a timely manner.

KUALA LUMPUR, Kerjaya Prospek Group Bhd has clinched an RM87.66 million contract from Eastern & Oriental Bhd to undertake building works for a commercial development in Shah Alam. In a statement on Wednesday, the group said the contract was awarded to its wholly owned unit, Kerjaya Prospek (M) Sdn Bhd, by E&O’s indirect subsidiary, Eastern & Oriental Express Sdn Bhd. The project involves constructing 104 two-storey shop offices, six three-storey shop offices, 23 affordable shop units, two electrical substations, and one compact substation. Work is set to begin on Nov 17, 2025, with completion expected within 30 months. “We are pleased to secure another project in Shah Alam, a rapidly growing area with strong demand,” said chief executive officer Tee Eng Tiong. With this win, Kerjaya Prospek has secured seven projects worth about RM958 million this year, bringing its total outstanding order book to RM3.6 billion. At Wednesday’s close, Kerjaya Prospek shares slipped 10 sen or 3.57% to RM2.70, giving the group a market value of RM3.42 billion. E&O’s shares eased half a sen to 80.5 sen, valuing it at RM2.03 billion.

KUALA LUMPUR, Sunway Property has announced the rebranding of its Singapore operations to Sunway MCL, following the group’s S$738.7 million (RM2.42 billion) acquisition of MCL Land. Nava Grove, an award-winning residence at Pine Grove, seeks to redefine refined living with a seamless blend of nature, design and wellness-inspired amenities. In a statement released on Friday, Sunway said the newly formed entity currently manages nine ongoing residential projects across Singapore, comprising 4,937 units with a combined gross development value (GDV) of S$4.5 billion (RM14.9 billion). Among the key developments under the Sunway MCL brand are ELTA, Nava Grove, Tembusu Grand, and The Continuum. Sunway Group’s executive deputy chair Datin Paduka Sarena Cheah said the establishment of Sunway MCL represents a major milestone in the group’s regional growth strategy. “Singapore has always been a key market for us, and this step strengthens our long-term commitment to developing sustainable communities that create lasting value,” she said. “Through Sunway MCL, we are deepening our presence in one of Asia’s most vibrant property markets and reinforcing the group’s foundation for future growth.” The rebranding combines MCL Land’s six decades of experience in Singapore’s residential market with Sunway’s five decades of expertise in Malaysia, creating a stronger platform for delivering sustainable, mixed-use communities. Sunway MCL is led by chief executive officer Lee Tong Voon, under the supervision of Sunway Property managing director Chung Soo Kiong. Lee said the company remains focused on crafting high-quality homes built on craftsmanship, care, and connection. “Our aim is to create residences that embody timeless design and enduring warmth, offering spaces that hold long-term value for homeowners,” he said. The acquisition also includes MCL Land’s Malaysian assets, such as development land banks in Wangsa Maju and Forest Heights, Seremban, along with Wangsa Walk Mall, which offers a net lettable area of 330,000 sq ft. These additions are expected to strengthen Sunway Property’s position as a master community developer, expanding its regional presence while reinforcing its base in Malaysia. Sunway Property also maintains a strong cross-border footprint through its flagship developments in Johor, including Sunway City Iskandar Puteri, a 2,000-acre township near the Second Link, and the upcoming Bukit Chagar RTS transit-oriented development at the First Link.

SINGAPORE, CapitaLand Investment Ltd (CLI) has issued a statement addressing a report by The Wall Street Journal (WSJ) suggesting that the company is exploring a potential merger with Mapletree Investments Pte Ltd. In its statement, CLI said it “does not comment on rumours or speculation” and declined to provide further details regarding the report. Earlier on Monday, WSJ reported that the two Singapore-based property giants were in the very early stages of evaluating a possible merger, which could potentially create one of the region’s largest real estate investment and management groups. The report also noted that discussions are still preliminary, and there is no certainty that any agreement will be reached. CapitaLand Investment, which manages a global portfolio of real estate assets across multiple markets, was listed on the Singapore Exchange in 2021 following the restructuring of CapitaLand Ltd. Mapletree, meanwhile, is a government-linked real estate developer and investment firm wholly owned by Temasek Holdings. Both companies are considered major players in Asia’s property sector, with extensive portfolios spanning commercial, logistics, and residential developments. A merger, if it materialises, could reshape Singapore’s real estate landscape and strengthen their combined global presence.

KUALA LUMPUR, Mah Sing Group Bhd has acquired a 111.29-hectare freehold parcel adjacent to its existing 202.34-hectare M Legasi township in Semenyih for RM273.5 million. In a statement, the property developer said the acquisition paves the way for M Legasi 2, an integrated township featuring a mix of residential units and commercial spaces tailored to modern lifestyle needs. The sale and purchase agreements were signed with Petaling Garden Sdn Bhd, a subsidiary of SP Setia Bhd. “The newly acquired land enjoys existing road access, providing immediate connectivity and supporting faster project readiness. The development is planned over eight years, with registration of interest set for 2026 and project launch targeted for 2027,” the company said. The acquisition involves two adjoining freehold parcels in Semenyih, with a total gross area of about 123.43 hectares — of which 111.29 hectares are net developable. Mah Sing founder and group managing director Tan Sri Leong Hoy Kum said the move reinforces the group’s confidence in Semenyih’s growth potential as an emerging residential and commercial hub. This marks Mah Sing’s third land deal in 2025, following the acquisitions of M Aria, a 1.12-hectare prime site in Sentul with a GDV of RM283 million, and another 0.59-hectare parcel in Kuala Lumpur City Centre, valued at RM1.28 billion in GDV.

PETALING JAYA, Pelaburan Hartanah Bhd (PHB) is charting a new course in its growth strategy by broadening its property portfolio beyond traditional office and retail assets, venturing into emerging, high-growth sectors, and upgrading its existing properties to meet modern sustainability and tenant requirements. The property investment firm, which manages assets valued at nearly RM11 billion, is also diversifying geographically — expanding beyond the Klang Valley into growth regions such as Kedah, Johor, and Terengganu, with plans to enter Sabah and Sarawak to align with Malaysia’s next phase of economic development. Pelaburan Hartanah Bhd group managing director and chief executive officer Mohamad Damshal Awang Damit. Established to enhance bumiputra participation in commercial real estate, PHB manages the Amanah Hartanah Bumiputra (AHB) fund via its subsidiary, PHB Asset Management Bhd. AHB — a syariah-compliant unit trust — allows bumiputra investors nationwide to invest in income-generating properties for as little as RM1 per unit. AHB’s portfolio includes notable assets such as Menara Prisma in Putrajaya, NU Sentral Shopping Centre, Gleneagles Hospital (Block B) in Kuala Lumpur, CP Tower in Petaling Jaya, One Precinct in Penang, and The Shore Shopping Gallery in Melaka. PHB group managing director and chief executive officer Mohamad Damshal Awang Damit said the group aims to build a “balanced, resilient and future-ready” portfolio that supports long-term growth while protecting unitholder value. “While our assets have traditionally been concentrated in offices and retail, we’re shifting towards sectors tied to structural trends that will shape Malaysia’s future,” he told StarBiz. “Healthcare is a key example — as Malaysia approaches aged-nation status by 2040, there will be growing demand for hospitals, specialist centres, and aged-care facilities.” He added that industrial real estate is another strategic focus area. “With the rapid rise of eCommerce, AI, and cloud computing, the demand for advanced logistics hubs, smart warehouses, and data centres is accelerating. PHB is actively exploring investments in these segments as part of a long-term transformation strategy.” As of August, PHB’s portfolio comprised 38% office assets, 20% retail, 13% land, 10% industrial, and 8% healthcare properties. Nearly 77% of the group’s assets are completed and income-generating, with the remainder consisting of development projects and strategically located land banks. PHB recently acquired two industrial assets — one in Kulim Hi-Tech Park, Kedah, and another near the Port of Tanjung Pelepas, Johor — worth a combined RM247 million. The Kedah property, spanning 12 acres, is fully leased to Schott Glass, a global leader in specialty glass, while the Johor site is occupied by global logistics giant Maersk. “These investments provide long-term, stable income streams from world-class tenants and strengthen PHB’s foothold in Malaysia’s key industrial and logistics corridors,” Mohamad Damshal said. He noted that both Kedah and Johor are among Malaysia’s top five states for approved investments, driven by global supply chain shifts and nearshoring trends. PHB also continues to expand along the east coast, with the opening of Mayang Mall in Kuala Terengganu last December, which has achieved an 84% occupancy rate. In June, PHB reopened 300 million new AHB units for bumiputra investors. Since AHB’s inception in 2010, it has attracted over 82,000 individual investors and 19 institutional investors, with a cumulative RM2.43 billion in income distributed to date. For the six months ended Sept 30, 2025, PHB declared a total income distribution of 2.5 sen per unit, inclusive of a 0.4 sen bonus for the first one million units held by each investor. Looking ahead, Mohamad Damshal said PHB aims to expand further into high-potential regions such as Sabah and Sarawak, targeting sectors like green energy, logistics, and sustainable development. “We are taking a disciplined approach to portfolio rebalancing — divesting mature assets when appropriate and reinvesting in higher-yielding, future-focused properties,” he said. He also noted that tenant demand is evolving toward environmental, social and governance (ESG)-compliant buildings. “The definition of quality has changed. Tenants are no longer looking just at rent or location — they want sustainability, flexibility, and strong governance. PHB is investing in precisely these areas.” PHB currently holds a AAA stable credit rating from RAM Ratings and a Gold3 sustainability rating, underscoring its strong financial discipline and ESG leadership. “These recognitions affirm PHB’s commitment to financial resilience and responsible growth,” Mohamad Damshal said. “Ultimately, every step we take — from acquiring strategic assets to expanding AHB — supports our mission to grow bumiputra ownership in commercial real estate and strengthen bumiputra economic participation.” PHB posted a net profit of RM117.2 million in the previous financial year.

KUALA LUMPUR, Sarawak Consolidated Industries Bhd has accepted a second revised contract worth RM172.4 million from Perbadanan PR1MA Malaysia (PR1MA) for the construction of affordable housing in Kota Bharu, Kelantan. In a filing with Bursa Malaysia, the construction and precast concrete specialist said its wholly owned subsidiary had received the updated Letter of Award from PR1MA, marking another adjustment to the project’s value and scope. Originally awarded in May 2021, the contract involved the development of 632 residential units valued at RM120 million. It was first revised in April 2024 to RM162 million, with a 36-month completion period and a 24-month defect liability period upon issuance of the certificate of completion and compliance for each section. Under the latest revision, SCIB said the contract value had increased by an additional RM9.95 million to reflect updated project requirements, scope adjustments, preliminary works, and value-engineering efforts. Despite the higher value, the completion timeline remains unchanged at 36 months. The project will continue to cover the full engineering, procurement, construction and commissioning (EPCC) scope, underscoring SCIB’s expertise in large-scale housing development. “Our ongoing collaboration with PR1MA highlights SCIB’s proven track record in executing nationwide affordable housing projects that align with the government’s vision of accessible homeownership,” said SCIB executive chairman Datuk Chong Loong Men. He added that the company remains committed to pursuing new project opportunities while seeking professional advice before submitting the revised agreement for final board approval. At market close on Friday, SCIB’s shares slipped half a sen or 2% to 24.5 sen, valuing the company at RM171.3 million.