Benalec: Its specialized niche in marine construction has been reaping high margin construction industry. It is shaping to be a major landowner and developer as it will receive some 177.3 acres of land in Melaka in exchange for reclamation land. It is open to JV with property developers for the prime seafront land it is reclaiming in Melaka, broadening the company’s previous practice of selling plots of reclaimed land outright. Although the company first priority is to sell its reclaimed land, it is in talks with several property companies on prospective partnerships.
Earlier it announced that its unit had entered into an agreement with Melaka government owned Yayasan DMDI to undertake reclamation works for the latter on a portion of the coast in the Kota laksamana area in Bandar Melaka. The Melaka government had granted Yayasan DMDI a concession to reclaim the land, which will measure about 250 acres upon the completion of reclamation works. Benalec will entitled to 177.33 acres of land upon completion of the reclamation works, which will be retained on its balance sheet as ‘Land Held For Sale’. The remainder 72.67 acres will be surrendered to the Melaka government and Yayasan DMDI.
The reclamation works will be funded by internally generated funds and bank borrowings. Funding is not an issue since the group raised up to rm100 million from its IPO in Jan 2011.
Going forward, observers view the deal is significant for Benalec as the land concession holds immediate development potential for Benalec once reclamation works are complete. The Kota Lakasamana project is expected to draw attention from property developers as it sits on prime seafront land within Melaka’s city centre can can be further developed for mixed development. Based on estimates, Benalec stands to reap a net gain of about rm116 million from land disposals alone over a three year reclamation period.
1.90 (AMResearch), 1.42 (OSK), 1.95 (MBB)
RGB: It hopes to pare down its borrowings and set aside cash for working capital following the commencement of operations at the Cebu Park Mall Satellite Casino in the Philippines under an agreement in the Pagcor.
The group had borrowings of rm1289 million and US$6.17 million as at Dec 31, 2011.
According to the company, the operation of RGB’s latest outlet, which has 108 slot machines, in the Philippines began in March 11, 2011. This is the first project under a concession signed with Pagcor for the placement of 1700 machines and is RGB’s 16th operating outlet in Philippines . Tehre was no initial capital outlay for the venture as RGB is using existing machines.
RGB: 0.06 (CIMB)
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