Real estate investors should look at the positive side during the current economic uncertainty, as there is still some upside in this sector.MGPA (Bermuda-based real estate investment company) invest RM2 billion in real estate market.

Construction cost is now at a moderate rate and with careful selection of property investment, MGPA still can make benefit. MGPA will invest RM2bil (including acquisition and construction costs) in The Intermark.

The amount involves the complete refurbishment of 62-storey landmark grade A office building Vista Tower (formerly known as Empire Tower), a new international grade A office building Integra Tower, retail centre Intermark Mall (formerly known as City Square) and Malaysia’s first Doubletree by Hilton Hotel.

MGPA – through it’s Asia Fund 2 – acquired the Empire Tower, City Square, the Crown Princess Hotel and Plaza Ampang in 2007 for about RM760mil. Read more »

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Bank Negara Overnight Policy rate (OPR) being reduced to 2.50% (OPR decreasing in Jan’09), most of the banks adjusted the fixed deposit rate from 2.50% to 3.0% and Base Lending Rate (BLR). Those bank mortgage loan borrower with floating rate type have chance to reduce the bank mortgage rate. It’s one of the benefits on property investment.

However, it seems that few of the banks seems still not announce the changing of Base Lending Rate (BLR). Anyway, need to confirm with the bank whether the showed bank mortgage rate is not yet adjusted to reflect the changes of the OPR.

Referring to Malaysia Bank mortgage Loan BLR history, base lending rate hit lower point since year 1989. And below table show a list of Base Lending rate in Bank Malaysia and the effective date. (Note:some of the banks not yet announce the latest BLR). Read more »

CIMB Bank expect 30% to 50% of its new mortgage loans this year to come through Islamic finance, CIMB Bank’s head of retail banking, Peter England said at 11th Feb’2009.

With the launch of its new Flexi Home financing-I Scheme, which covered both Islamic and conventional financing, the CIMB bank was expecting a significant growth in the mortgage loans segment in year 2009. Flexi Home financing-I Scheme is referring to adjust rate bank mortgage loan (ARM). Some of the party call as floating rate bank mortgage loan.

With the strengthening on CIMB Bank in terms of distribution, CIMB Bank are the fastest growth mortgage business in Malaysia and think of make a significant impact in the rollout of this product. Read more »

While waiting for property market to pick up in property development, Mulpha International Bhd will forge ahead with plans to develop its property projects in anticipation of better demand once the economy and in turn the property market picks up again.

Executive chairman Lee Seng Huang said the group would focus on its Leisure Farm Resort in Iskandar Malaysia, Johor as well as its high-end boutique property development in Bangsar and an office tower in Jalan Sultan Ismail, both in Kuala Lumpur, to enhance its property portfolio.

Mulpha International Bhd is very confident of the quality of their unique property developments and has a strong balance sheet to ride out this storm. However, they remain conscious of capital expenditure and are tailoring the property project timing according to the rapidly changing property market. environment.

Lee said there were a further 600acres to be developed at the RM2.1bil Leisure Form Resorts – a gated resort property development that covers about 1765 acres surrounded by rivers, orchards, parks and a mangrove swamp. Read more »