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Parkson Festival Mall

Pulau Melaka, Melaka


Developer

: Parkson Corporation Sdn. Bhd Completed

: 2015 Built up

: 1.5 million sq.ft
This 23 acre development is planned for a mixed development that comprises office, residential and a 750,000sq.f t. net rentable space in Phase I. Phase II will add an additional 500,000sq.f t. net rentable space when completed.

The design objective was to develop a water front shopping mall. The mall will incorporate a promenade to allow shoppers to experience a water front ambience. This breezy casual atmosphere will also be experienced in a street mall that is sandwiched between the two blocks of air-conditioned malls.

Ever y level of the mall is lit with natural lighting through glass walls that run along the length of the mall’s atrium.

The glass walls allow shoppers to have external views of the sea and the transparency together with appropriate landscaping will give the shoppers the experience of the openness of a “seaside” or “waterfront” ambience.
 

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Discussion Starter · #2 ·
Wednesday, 7 May 2014

Parkson to build malls and lease out space


Parkson Holdings will start building malls and leasing out space to get better margins to deal with pressure on its turnover. It will build malls in Malacca and Cambodia, both scheduled to open in 2017. The company is also building a mall in Qingdao, China, which is set to open its doors in the middle of next year. The cost of the mall in Malacca will be between RM800-900m while the one in Cambodia will cost RM381m. Parkson owns stakes in Parkson Retail Asia (PRA) and Parkson Retail Group Ltd (PRGL), companies listed on the Singapore Stock Exchange and Hong Kong Stock Exchange, respectively. (StarBiz)
 

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http://klse.i3investor.com/blogs/journeytowealth88/17046.jsp
Parkson Holdings - Opening New Mall in Melaka

Author: kiasutrader | Publish date: Tue, 4 Sep 09:21 | >> Read article in Blog website





THE BUZZ


Yesterday, Parkson announced that its wholly-owned subsidiary Megan Mastika SB has entered into a conditional sale and purchase agreement with Dimensi Andaman SB for the acquisition of 15 acres out of the 23.22 acres' undivided interest of land located in Kawasan Bandar XLII, Daerah Melaka Tengah, Negeri Melaka for a cash consideration of RM98m.

OUR TAKE

A mixed development. Dimensi Andaman plans to develop an integrated commercial and property development project on the entire 23.2 acres of land which comprises a shopping mall, serviced apartments and a boutique hotel. Parkson, via Megan Mastika, will be setting up the shopping mall. The purchase consideration will be funded internally and is expected to be complete by December 2012.

A sequel to KL Festival City's success. This is an opportunity for the group to develop a shopping mall at a strategic location in Melaka that has famous tourist attractions and is in an area that is planned for a mixed development with a sea frontage. Parkson intends to develop at least three to four malls by 2015; its first mall, KL Festival City located along Jalan Genting Klang, Setapak, was opened in Oct 2011, built with a capex of RM215m.

Still cash positive. As of June 2012, Parkson is in a net cash position of RM1770.4m. Given the cost of construction for the KL Festival City was RM215m for a land size of 8 acres, it will cost Parkson an estimated RM403m to build the 15 acres new Melaka shopping mall, assuming the same plot ratio. The cost of construction plus RM98m land acquisition cost will reduce Parkson's net cash position to RM1269.4m, which is still a huge cash pile.

Maintain BUY. Given the positive track record of the group's success with KL Festival City, we believe the new mall in Melaka will be beneficial for Parkson in the long run to boost its property and management income. Maintain BUY with a FV unchanged at RM5.42.

Source: OSK
 

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Parkson to acquire land for mixed developments in Malacca

By Charlotte Chong / theedgemarkets.com
December 24, 2014 : 8:17 PM MYT

KUALA LUMPUR (Dec 24): Parkson Holdings Bhd has proposed to acquire property firm Dimensi Andaman Sdn Bhd and a 6-acre tract in Malacca for RM92.96 million cash from Ayer Keroh Resort Sdn Bhd (AKR).

In an announcement with Bursa Malaysia today, Parkson said its wholly owned subsidiary, Megan Mastika Sdn Bhd had today entered into two separate sale and purchase agreements (SPAs) with Ayer Keroh Resort Sdn Bhd to acquire Dimensi Andaman for RM53.72 million and a 6-acre tract (AKR Land) for RM39.24 million.

Parkson said Megan Mastika had earlier purchased 15 acres out of the total 23.22-acre near Kawasan Bandar XLII, Daerah Melaka Tengah, (DA Land) for RM93 million cash in December 2012.
http://www.theedgemarkets.com/my/article/parkson-acquire-land-mixed-developments-malacca
 

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I read in the papers some time back that Parkson sold off its KL Festival Mall because they wanted to focus on building high end malls. So is this Parkson Festival Mall in Malacca part of their high end mall focus?
 

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Discussion Starter · #7 ·
Parkson to acquire land for mixed developments in Malacca





By Charlotte Chong / theedgemarkets.com | December 24, 2014 : 8:17

http://www.theedgemarkets.com/my/printpdf/176263KUALA LUMPUR (Dec 24): Parkson Holdings Bhd has proposed to acquire property firm Dimensi Andaman Sdn Bhd and a 6-acre tract in Malacca for RM92.96 million cash from Ayer Keroh Resort Sdn Bhd (AKR).
In an announcement with Bursa Malaysia today, Parkson said its wholly owned subsidiary, Megan Mastika Sdn Bhd had today entered into two separate sale and purchase agreements (SPAs) with Ayer Keroh Resort Sdn Bhd to acquire Dimensi Andaman for RM53.72 million and a 6-acre tract (AKR Land) for RM39.24 million.
Parkson said Megan Mastika had earlier purchased 15 acres out of the total 23.22-acre near Kawasan Bandar XLII, Daerah Melaka Tengah, (DA Land) for RM93 million cash in December 2012.
Meanwhile, Dimensi Andaman owns the balance 8.22 acres of land adjacent to the land that Megan Mastika had acquired earlier.
On top of that, the six-acres of land purchased from AKR is also adjacent to Megan Mastika’s land.
The proposed acquisition is slated to be completed by first quarter of next year, said Parkson.
Granted by the state government of Malacca, AKR has the sole and exclusive right to carry out reclamation and development works on the land that Parkson has proposed to acquire.
The total purchase consideration will be funded by internally generated funds of Parkson.
To-date, the reclamation work on the DA Land had been completed while the reclamation work on the AKR Land has not commenced. The estimated cost for the reclamation works for AKR Land is approximately RM9 million.

AKR should complete the reclamation work on the AKR Land within three years from the completion date of the AKR Land SPA, said Parkson. Should AKR fail to do so, Megan Mastika shall be entitled to the remedy of specific performance and damages against AKR.

The state government of Malacca had also issued titles for the DA Land and the AKR Land, with leasehold term of 99 years ending Nov 28, 2111 and May 25, 2113 respectively.

Dubbed “Lion City Land”, the DA Land and the AKR Land has a combined acreage of 29.22 acres and it is intended for mixed development purposes, it added.
Parkson said that independent valuer Messrs Henry Butcher Malaysia (Malacca) Sdn Bhd had on Dec 18 certified the market value for the Lion City Land at RM190.96 million.

It noted that the proposal was in line with the its objective of owning key shopping malls, “The proposals will complement the Parkson Holdings Group in developing a shopping mall in Melaka, as the Lion City Land is strategically located in a prime area designated for mixed development purposes.”

“The Lion City is an integrated mixed development including the Melaka Parkson Mall and is expected to contribute positively to the future earnings of the Parkson Holdings Group.”

According to theedgemarkets.com, Parkson’s valuation score is at 1.2 out of 3, with 3 suggesting a company gives higher than market average returns and is trading at a lower than average valuation.
Parkson’s fundamental score is at 1.65 on a scale of 0-3, with 3 suggesting that it is profitable and has strong balance sheet.
The volatility of the stock is rated at 1 on a scale of 1 to 5, 1 being the least volatile.
Parkson has closed 0.85% higher at RM2.37 today, translating to a market capitalisation of RM2.51 billion.
 

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By TA Securities / The Edge Financial Daily | July 13, 2015 : 11:28 AM MYT


Parkson Holdings Bhd ( Financial Dashboard)
(July 10, RM1.41)
Maintain sell with a reduced target price (TP) of RM1.47: We met up with the management of Parkson recently. The management appears to be still cautious about the outlook as consumers are still adjusting to the structural shifts within the economy.

The management indicated that in other countries that had implemented the goods and services tax (GST), sales typically fall in the months thereafter. In the case of Malaysia, sales could remain weak for about six months, the management estimates, before shopping pattern normalises.

Retail Group Malaysia has revised down its forecast retail sales for 2015 from 4.9% to 4%. This is on the back of higher costs of doing business and living, and higher retail prices owing to a weak ringgit.

This is consistent with Parkson’s weak same store sales growth (SSSG) for the nine-month period of financial year 2015 (9MFY15) of -1.2%. Furthermore, with the pump price surged in two consecutive months, consumers are now expected to have less money to spend. Hence, private spending is estimated to further decline.

Planned new store launches in Malaysia are two to three per year, while in China, about four to five per year. In China, that is about a 40% reduction from the previous target of five to eight stores per year.

In Malaysia, the Maju Junction store is targeted to commence operations in December. The estimated capital expenditure for the store is between RM40 million and RM50 million, and will incorporate the “edutainment” concept.

The group is also planning a large store in Melaka, which could measure two milllion sq ft in total.

The development is consisted of two phases, with the first phase to be completed by 2017.

The management indicated that a new store typically takes about one to three years to break even.

To recap, Parkson Vietnam, a wholly-owned subsidiary of Parkson Retail Asia Ltd (PRA), entered into an agreement with Hoang Manh to dispose of approximately 30% of equity stake in Parkson Hanoi for a total consideration of US$5,000 (RM18,950).

After the completion of the exercise, Parkson Vietnam’s stake will be reduced from 75.4% to 45.4%, making Parkson Hanoi an associate, instead of a subsidiary of Parkson Vietnam.

To recap, Parkson Hanoi was established in Vietnam in 2008, with principal activities including retailing and operations of shopping centres. Parkson Hanoi has leased two retail premises in Hanoi: Parkson Viet Tower and Landmark 72. Parkson Hanoi has been a loss-making entity for the past few years, with losses before tax of approximately S$5 million for FY13 and S$7 million for FY14.

To date, the company recorded a loss before tax of S$7 million for 9MFY15. The move to reduce the company to associate from subsidiary formerly will see PRA’s share of losses from Hanoi reduced accordingly.

Parkson has been actively buying back its shares in the open market, which could provide some downside support for the stock price. To recap, the group has switched to share buy-back from cash dividends, mainly due to the latter being constrained by a lack of sufficient retained earnings.

Note that the last time the company paid its dividend in cash was back in 2013, for 18 sen per share.

On July 2, the group completed the distribution of three treasury shares for every 50 shares held. A total of 61.9 million treasury shares were distributed back to shareholders. Upon completion, the company would only hold approximately 1.3 million treasury shares.

All in all, the near-term earnings risk has not subsided in our view, due to the continued structural issues in China, the impact of the GST in Malaysia, and the store portfolio restructuring.

Changes to our assumptions include promotional and advertising expenses which have been revised upwards from 5% to 8% for FY15 to FY18, as we expect heavy promotional and advertising activities to counter sluggish sales, as well as lower SSSG assumptions for China (-6% from -5% previously) and Malaysia (-3% from -2% previously).

In aggregate, we trimmed FY15/FY16/FY17 earnings forecasts by -12.3%/-14.4%/-8.5% to RM147.4 million/RM128.1 million/RM174.8 million.

Subsequent to the earnings downgrade, we cut our sum-of-parts-based TP for the stock to RM1.47 from RM2.19 previously. We, however, do not see any near-term rerating catalyst that could drive the share price. We reiterate our “sell” recommendation on Parkson. — TA Securities, July 10
 
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