Monday, Jul 26, 2004
MARC has affirmed Perspektif Perkasa Sdn Bhd’s (PPSB) RM188 million nominal value Murabahah Underwritten Notes Issuance Facility rating of MARC-3ID. The rating is reflective of Bandar Pinggiran Cyber’s positioning as an affordable integrated township underlined by the competitive pricing of the residential development vis-à-vis other property developments within the vicinity. The township’s strategic location near to Cyberjaya and Putrajaya should also enhance Bandar Pinggiran Cyber’s competitive advantage. Lending support to the rating is the grant to the primary subscriber of a put option on Talam Corporation Berhad (Talam) in the event of default, automatically obliging Talam to assume the indebtedness under the MUNIF. The rating is, nonetheless, moderated by PPSB’s exposure to potential adverse developments in the property market.
The proposed township is situated on a 99-year leasehold land, in Mukim Dengkil, Daerah Sepang at the fringe of Cyberjaya. The property development is accessible via the Lebuhraya Damansara Puchong and North South Central Link (Elite Highway). Prices of the residential units are expected to be affordable retailing at less than RM250,000 for the single storey terrace houses, double storey terrace houses and low to medium cost apartments. The take-up rate for the project should be boosted by the integrated township’s competitive pricing as well as its strategic location given its location at the peripheral of Cyberjaya and Putrajaya.
Over a period of about seven to eight years, PPSB intends to develop and sell a total of 11,325 units of mixed development properties with a Gross Development Value of about RM1,556.3 million. As at 31 March 2004, a total of 1,497 units of single storey terrace houses comprising Phases 3D1, 3D2 and 3E have been launched. To-date, PPSB has sold 1,247 units valued at RM159.67 million representing a take up rate of approximately 83.30%. The relatively high take-up rate underlines the attractiveness of Bandar Pinggiran Cyber as an affordable residential area. Latest indication from the management is that the residential property is 10% completed. Correspondingly, PPSB has billed RM15.97 million, of which RM12.55 million has been collected.
The turnkey contractor for this development project is Talam Builders Sdn Bhd, a subsidiary of Talam. The presence of Talam in this project mitigates concerns related to construction risk, given Talam’s vast experience in the property industry. An Option Agreement is also available under the issue structure, where note holders can exercise a put option on Talam in the event that PPSB defaults. Should the put option be exercised, Talam shall unconditionally undertake to acquire the entire paid-up capital of PPSB and to assume the total indebtedness and ensure the completion of the project.
PPSB’s debt service capacity is highly dependent on the company achieving the projected sales target and any significant delays in the collection of progress billings and discounts in the projected sales volume would potentially affect its cash flow position.
The proposed township is situated on a 99-year leasehold land, in Mukim Dengkil, Daerah Sepang at the fringe of Cyberjaya. The property development is accessible via the Lebuhraya Damansara Puchong and North South Central Link (Elite Highway). Prices of the residential units are expected to be affordable retailing at less than RM250,000 for the single storey terrace houses, double storey terrace houses and low to medium cost apartments. The take-up rate for the project should be boosted by the integrated township’s competitive pricing as well as its strategic location given its location at the peripheral of Cyberjaya and Putrajaya.
Over a period of about seven to eight years, PPSB intends to develop and sell a total of 11,325 units of mixed development properties with a Gross Development Value of about RM1,556.3 million. As at 31 March 2004, a total of 1,497 units of single storey terrace houses comprising Phases 3D1, 3D2 and 3E have been launched. To-date, PPSB has sold 1,247 units valued at RM159.67 million representing a take up rate of approximately 83.30%. The relatively high take-up rate underlines the attractiveness of Bandar Pinggiran Cyber as an affordable residential area. Latest indication from the management is that the residential property is 10% completed. Correspondingly, PPSB has billed RM15.97 million, of which RM12.55 million has been collected.
The turnkey contractor for this development project is Talam Builders Sdn Bhd, a subsidiary of Talam. The presence of Talam in this project mitigates concerns related to construction risk, given Talam’s vast experience in the property industry. An Option Agreement is also available under the issue structure, where note holders can exercise a put option on Talam in the event that PPSB defaults. Should the put option be exercised, Talam shall unconditionally undertake to acquire the entire paid-up capital of PPSB and to assume the total indebtedness and ensure the completion of the project.
PPSB’s debt service capacity is highly dependent on the company achieving the projected sales target and any significant delays in the collection of progress billings and discounts in the projected sales volume would potentially affect its cash flow position.