SIDELINE ON PROPERTY NEWS
BREAKTHROUGH FOR BATTERSEA POWER STATION The Northern Line Extension has reached a major milestone with the completion of tunnelling work. • Tunnelling work completed as boring machines break through at Kennington • Two 3.2km tunnels have been created from Battersea to Kennington, via Nine Elms • Northern Line Extension will support around 25,000 new jobs and more than 20,000 new homes
IJM INVESTS RM500 MILLION IN PRIME OFFICE TOWER IN TRX IJM Corporation Bhd is developing an office tower at the upcoming international financial district - Tun Razak Exchange (TRX). IJM will acquire 100% equity of Fairview Valley Sdn Bhd (FVSB), a subsidiary of TRX City Sdn Bhd. TRX City is the master developer of TRX. •
The Grade A, LEED Gold-certifed office building, built over a land area of 1.18 acres with a gross floor area of about 560,000 sq ft, will be Prudential’s new Malaysian headquarters. It will house all of Prudential’s life insurance and asset management businesses under one roof. Currently under construction, the building is slated for completion in December 2018, and has already secured tenants for 84% of its net lettable area.
KUANTAN PORT INKS LAND SUBLEASE AND TERMINALLING AGREEMENTS
Kuantan Port Consortium Sdn Bhd, a subsidiary of IJM Corporation Berhad, and NewOcean Energy (Malaysia) Sdn Bhd (NewOcean), a fast-growing energy supplier in the Southern China region recently signed land sublease and terminalling agreements for the devlopment of NewOcean’s oil refinery complex at Kuantan Port.
E&O 1H REVENUE AND PROFITS ON THE RISE
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Under the agreements, NewOcean is expected to develop, build, own and operate the oil refinery complex The project which is estimated to cost approximately RM 5.1 billion comprises an oil refinery which has an annual production capacity of 3.5 million tonnes Developed over two phases, the project’s first phase is expected to be completed within 24 months and will yield 1.5 million tonnes annually. An additional 2 million tonnes of annual production is projected for the second phase which will take 18 months to be completed. The agreement is pursuant to an MoU signed by Kuantan Port, NewOcean and East Coast Economic Region Development Council (ECERDC) which was witnessed by Prime Minister Datuk Seri Najib Tun Razak in August 2017. At the MoU signing ceremony, ECERDC announced a total of RM9.9 billion new investments in the east coast region, of which the NewOcean oil refinery agreement was the largest.
38 I December 2017
Eastern & Oriental Berhad’s financial results for the first six months of its 2017-2018 fiscal year reported a year-on-year (y-o-y) increase in profit and revenue. • • •
Revenue for the 6-month period ended September 30, 2017 stood at RM369.3 million, up 52.2% from the same period a year ago. The Group’s pre-tax profit was at RM67.1 million, representing a 291.8% surge y-o-y. The property segment recorded an operating profit of RM103.7 million for the first half ended 30 September 2017, doubling of RM51.8 million achieved in the same period 12 months ago The Group has successfully pared down its gearing position to 0.59 times to date as compared to 0.73 times at the end of financial year 2017.