Showing posts with label Miscellaneous. Show all posts
Showing posts with label Miscellaneous. Show all posts

Sunday, February 6, 2011

Firm aims for top spot in property management

SUBANG: Andaman Property Management Sdn Bhd (APM), which is currently building and managing 10 ongoing property projects locally, aims to be the country's leading property management and property related services company.

Its executive director (sales and marketing) Datuk Vincent Tiew said from Jan 2011 onwards, the company would be launching and managing at least 10 properties worth RM2bil simultaneously.

Tiew said of 10 projects it currently managed, four belongs to the Andaman group.

“And we anticipate more developers and landowners to request for our services this year,” Tiew told StarBiz, adding that APM's business model was to develop and manage properties while generating high yield and fast turnaround for developers and landowners.

APM was formed in 2009 by some of the management members of the Andaman Group, an established property developer.

“After honing their skills in property development and managing properties of the Andaman Group, they decided to form an independent company, which is how APM was incorporated,” Tiew noted.

On its business model, Tiew said: “We want to be a leader in the industry in the country and build a strong track record of developing, maintaining and adding value to the properties that we manage in terms of yield, occupancy rates and capital gain for our clients, including property buyers.”

He said when APM was given the go-ahead to develop and manage a property project, it would first be looking to fulfill the developers expectation of the property project in terms of commercial reality, yield, bottom line.

“And our work starts from the onset of planning, authority management, construction and building maintenance to units selling, project administration and securing of strata-title. We also provide developers and landowners advice on how to best position the property development in terms of architectural design and other value-added services in line with developers/landowners expectations,” Tiew said.

On pricing he said: “We built shop lots and residential developments with per unit prices ranging from RM2mil to RM10mil and RM350,000 to RM1mil respectively.”

APM targeted its properties at the mass market to ensure that they remain in demand, even during the downturn, Tiew said, adding that for certain properties, buyers were guaranteed with return on investment.

APM's current property projects for the Andaman Group include Kota D'Sara with gross development value (GDV) of RM125mil, and Casa Residenza (GDV: RM180mil), both located in Kota Damansara. APM plans to launch the The Academia@South City Plaza in Seri Kembangan and the RM700mil The Arc@Cyberjaya in Cyberjaya.

By The Star

Tuesday, January 18, 2011

Sycal Ventures unit signs property JV

Sycal Ventures Bhd's wholly-owned unit, Sycal Properties Sdn Bhd, has signed a joint venture agreement with Global Net Communication Sdn Bhd.

In a filing to Bursa Malaysia today, Sycal said the companies aimed to jointly develop three plots of land in Kuala Lumpur into a high-end residential villas with estimated gross development value of RM70 million.

It said the development would contribute positively to the construction order book of Sycal Group.

By Bernama

Monday, January 17, 2011

Sunrise shares to be delisted on Jan 21

SUNRISE Bhd’s shares will be removed from the Main Market of Bursa Malaysia with effect from 9am on January 21.

Sunrise, which develops high-rise residences and commercial properties locally and abroad, has been taken over by UEM Land Holdings Bhd.

By Business Times

Sunday, January 9, 2011

UEM Land jumps as Sunrise bid completes

UEM Land Holdings Bhd, a Malaysian property developer, rose to a record in Kuala Lumpur trading as it’s close to completing a takeover of Sunrise Bhd.

The stock climbed 1.7 per cent to RM2.94 at 9:16 a.m. local time.

The takeover offer closed on Jan. 7 and it will now invoke a compulsory purchase order for all remaining shares of Sunrise, it said in a statement.

By Bloomberg

Saturday, January 8, 2011

JCorp may sell land, property to pare down debts

KUALA LUMPUR: Johor Corp (JCorp) is considering selling various assets including some landbank, properties and plantation assets to partly repay its current RM3.6bil debt which is due for repayment in July next year.

The state investment arm first plans to bring down the debt level of RM3.6bil to a “sustainable level” of between RM1bil and RM1.5bil following a debt restructuring exercise, its newly appointed president and chief executive Kamaruzzaman Abu Kassim said.

That would mean that it needs to raise at least RM2.1bil by 2012.

“About 70% (source of funding) for the RM2.1bil needed has already been identified and this includes selling some of our assets,” he said at a meeting with the media yesterday.

The group has “saleable assets” of RM2.1bil, Kamaruzzaman said, without elaborating.

JCorp's landbank and properties are largely in Johor and this includes up to RM2.5bil in commercial properties.

At at March last year, it had about 2,000ha to be developed in the Iskandar Malaysia region.

It also has major plantation and palm oil businesses in Papua New Guinea.

Kamaruzzaman said the group's remaining debt would be restructured via new loans or instruments.

JCorp has appointed CIMB Bank and Maybank Investment Bhd as advisors for the restructuring.

Both banks are also the biggest lenders to JCorp which could probably mean that both banks own the bulk of the bonds due for maturity.

According to JCorp's 2009 annual report, it has RM705mil in cash but a whopping RM6.62bil in debt and with hardly any free cash flow.

The RM3.6bil debt was due to JCorp's investment projects since 2000, “mainly in landed property and industrial areas”, it has been reported.

JCorp has been in the news in recent weeks after it rejected two bids for the takeover of its QSR Brands Bhd. One was by a company linked to tycoon Tan Sri Halim Saad and another by the Carlyle Group.

JCorp is the ultimate shareholder of the lucrative fast-food businesses of QSR and KFC Holdings (M) Bhd.

Its interests in both companies are held through its 53%-owned subsidiary Kulim (M) Bhd, which main business is in the plantation sector.

Kulim owns a 57.5% stake in QSR, which in turn, owns a 50.6% stake in KFC.

As one of the country's largest state economic development authorities, JCorp has about 250 companies under its stable from which it currently derives RM90mil in annual dividend income, Kamaruzzaman revealed.

Kamaruzzaman said yesterday there was a possibility some of these might be listed in the future. “But the proceeds will not be to repay our current debt due for maturity,” he said.

JCorp's other key assets apart from those in the recent limelight include private healthcare service provider KPJ Healthcare Bhd, property development companies Johor Land Bhd and Damansara Realty Bhd, intrapreneur venture business Sindora Bhd and the London-listed plantation company, New Britain Palm Oil Ltd (NBPO). (Kulim owns about 50% of NBPO).

NBPO is one of the world's largest producers of sustainable palm oil.

By The Star

Monday, January 3, 2011

Hua Yang sells retail units

KUALA LUMPUR: Main-board listed Hua Yang Bhd is selling 73 retail units in its flagship commercial property, One South, Sungai Besi, to South Crest Synergy for RM105mil.

One South, an iconic landmark in Sungai Besi, is a mixed development project spread over 1.72ha and is a key revenue driver for the company.

The development represented a large chunk of RM1bil worth of projects that the group was rolling out, the company said in a statement yesterday.

By Bernama

Friday, November 26, 2010

Up Close and Personal with Oussama Kabbani


FROM the strife-torn city of Beirut comes a man with great expertise and a big vision. Oussama Kabbani was born in Beirut and educated in an environment of civil unrest.

Years of civil war have built a certain resilience in him and today Kabbani is rebuilding the city he grew up in. The politics is edgy; it has always been at the crossroads of many cultures, but it is a city he has grown to love and enjoy. Changes are still afoot but that's just the reality of politics.

It may take longer than usual to reconstruct Beirut but when he took on the job, he was fully aware that it was a task that would span various economic cycles. But Beirut will be rebuilt, because the Harvard-trained urban planner has a big vision.

You cannot have a small vision. You have to have a big one but how much it gets done depends on many factors. If a vision begins small, it becomes smaller, saysKabbani, who was in Kuala Lumpur recently.

No doubt, he's self-motivated and a realist too. When one takes on a project such as this (Beirut), one is inviting criticism. So I might as well be harsh with myself from the beginning.

Kabbani is banking on his experience in building and regenerating cities around the world in his task in developing Iskandar Malaysia, the growth corridor that is three times the size of Singapore. He is involved in Medini, one of the cities in Iskandar Malaysia.

The chairman of Millennium Development says the company's expertise is in development management services.

The company undertakes work on behalf of developers and investors in real estates. Essentially, it sets up the development strategy and undertakes all the work done by a developer. The only difference is the investment does not come from Millennium Development but from investors, who can be the government or the private sector.

Kabbani says Millennium Development offers clients a portfolio of services which includes business development, urban planning, architecture, finance, marketing, legal and construction management.

A client may be driven by the goal to build 100 buildings. But in my mind's eyes, I am building 100 communities because there is a desire for human interaction. We cannot live far from human interaction.

Whether it is Beirut or here, it is the same. You may have your laptop, but you want to go into the office, or the restaurant. We are busy by day, and by night we seek the sanctuary of our homes, and so we create residential areas which are calm and conducive for rest, he says.

But why cities? Kabbani begins in Beirut, which is today still undergoing reconstruction.

Other than being the city he grew up in, he has learned a lot rebuilding a war-torn city. He is learning from the past in order to rebuild the future. You have to plan for the end and work towards it. If you have 1,000 ha, you cannot do it all at once. How you get from the start to the end sometimes takes a long process and we build over different economic cycles, he says.

Not many professionals get the opportunity to work on a destroyed city. I wish I need not have to, but when I got the chance to do it, I might as well learn a lot from it.

Added value

Much of it involves learning on the job and that in itself, provides a lot of added value.

When you are building a city from rubble, you have to consider so many aspects, the planning, the politics, the economics and social issues, all of which goes beyond architecture. Beirut was where I learned. We set up a platform for good things to happen but the reality is things happen and we pray for things to be better, not worst. First, it is my home country. Also, there is the passion that went into the making of a city after war. I used to say this is the age of the bountiful and we consider ourselves a new generation that was going home to rebuild what other people have destroyed. If you don't have passion, you cannot do a good job.

The mind is not enough. It has to be the mind and the heart and I am proud to say that to a big extent, we have succeeded, he says.

Building cities is not a common passion and Kabbani says he has been lucky over the last 15 years to live at a time when building cities has become common. The company is involved in various city projects in the Middle East, Malaysia and Kazakhstan.

Solid foundation

Oussama gave the company 20 years to reconstruct Beirut but due to the political and economic situation, it will now take another 15 years to finish. However, the foundation is solid and it will mature.

We will have the right architecture and transportation principles, the land use, the right mix. Our objective is to create that energy in order to pull in more investment, interest and media attention.

Then it will take a life of its own. But binding all these together is quality. It is not something that you can easily quantify because quality starts from everything underground, on the ground, and over the ground.

Although he loves Beirut, over the years, he has also grown to enjoy other cities, especially those with surprises around the corner. He also likes cities where he does not need to drive.

What does one remember about the cities that one has visited? Each city has its own identity. Twenty to 30 years later, will it be remembered for the shape, landscape, the buildings, the financial power? There must be a timelessness about it.

He started building cities in the Middle East and the experience he gained from Beirut became very valuable. Today, building cities or regenerating them have become a demand. The rebuilding of Aktau in Kazakstan, after the fall of the Soviet Union, is the city's aspiration to join the global economy.

Human aspect

He says that although the company is based in the Middle East, there is a human aspect that is synonymous with all mankind.

We may be different as a people, but equal as human. We are global, very global in our services but also very local wherever our projects may be, because as a Lebanese, there is always the Lebanese diaspora. We are all over the place and there is a natural tendency to assemble together. Unless you seriously respect another, you are bound to have trouble.

I went to the West to do my Masters, but was educated in Beirut, under the bombs. Beirut and those times were the school of life. As for my personal life, I come from a family of mixed marriages. And Lebanese are people who articulate their thoughts well.

And so we articulate our views and thoughts during meal times or when we come together.

By The Star (by Thean Lee Cheng)

Tuesday, November 23, 2010

Tan to quit as CEO, MD of IJM Corp Dec 31

IJM Corp Bhd's Datuk Krishnan Tan will step down as chief executive officer (CEO) and managing director (MD) of the group, effective December 31 2010.

Datuk Teh Kean Ming will instead be promoted as the new CEO and MD, IJM Corp said in a filing to Bursa Malaysia yesterday.

Tan, however, will stay on as executive deputy chairman from January 1 next year.

IJM Corp also announced that Tan Gim Foo will be the new deputy CEO and deputy MD of the group effective January 1 next year.

By Business Times

Sunway and SunCity shares suspended on merger talks

SHARES of Sunway Holdings Bhd and Sunway City Bhd (SunCity) have been suspended from trading amid speculation that they may be merged.

The construction and property firms, controlled by Tan Sri Jeffrey Cheah, asked for their shares to be suspended from yesterday until 5pm today, pending a material announcement.

They will be merged into a new company via an exchange of shares and cash, Dow Jones newswires reported yesterday, citing an unnamed source.

The new company will continue to be controlled by Cheah, it added.
If a merger were to happen, it would be the third property merger to be announced this month.

Sunway Holdings was last traded at RM2.25 and SunCity, at RM4.49.

By Business Times

MRCB revenue up but profit down

MALAYSIAN Resources Corp Bhd’s (MRCB) third quarter net profit fell by 63 per cent to RM3.7 million despite higher revenue.

Group pre-tax profit, however, increased by a quarter to RM15 million, helped by its ongoing property projects at Kuala Lumpur Sentral in Kuala Lumpur, MRCB said in its announcement.

Its revenue increased by 5.4 per cent to RM270.9 million.

For the nine months to date, MRCB’s net profit increased by 16 per cent to RM25.8 million.

By Business Times

Saturday, November 20, 2010

Growing appetite for investments


Medini is a mixed-development comprising three clusters – lifestyle and leisure, cultural and Iskandar financial district in Iskandar Malaysia, Johor. The three clusters are pivotal to the whole development of Nusajaya City.

Investors still committed to Iskandar Malaysia despite downturn, says Millennium Development

MILLENNIUM Development chairman Oussama Kabbani, whose company is involved in the development of Iskandar Malaysia, says the success of the growth corridor is its proximity to Singapore.


Oussama Kabbani ... ‘We are in a position to make the best of this recovery.’

Once the bullet train to Singapore becomes a reality, it will be possible to time one's journey to the city state. Even if it is delayed, it will happen. And the same goes for Medini, says Harvard-trained urban planner Oussama who was in Kuala Lumpur recently.

Medini is a mixed-development comprising three important clusters namely lifestyle and leisure, cultural and Iskandar financial district in Iskandar Malaysia, Johor. The three clusters are pivotal to the whole development of Nusajaya City.

When we first came three years ago, there was no housing, no Kota Iskandar, no shopping centres. In the last three years, the change has been unbelievable. Now there is warehousing and industries. Despite what the world economy has gone through, commitment from investors is still there. The world's appetite for investment is rising. We are in a position to make the best of this recovery, says Oussama.

Millennium Development is a member of Saraya Holdings, a Middle Eastern real estate development company. Its expertise is in development management services.

The company undertakes work on behalf of developers and investors in real estate. Essentially, they set up the development strategy and undertake all the work done by a developer.

The only difference is the investment does not come from Millennium Development but from the investors, which can be the Government or private sector.

Oussama says Millennium Development offers clients a portfolio of services which includes business development, urban planning, architecture, finance, marketing, legal and construction management.

We are only the catalyst. If you go through the check list, all the right factors are there, the location and the government support, among them.

How demand is created from abroad is a question of influence, he says.

Many projects sank during the recent economic crisis but Medini grew greater. The fundamentals are there. In a year or two, things will be coming up. LegoLand, the housing community, he said.

Oussama said credit goes to the investors and public-private initiatives, adding that where there is population and growth in wealth, there will be increasing aspiration for better social infrastructure and this is where Millennium Development adds value.

Southeast Asia is ripe for that. There is demand and big apirations but these aspirations are not limited to this region alone. The same is happening in China, the Middle East and Africa.

On the various development projects that are being undertaken around Kuala Lumpur by the Government in various public-private enterprises, Oussama said when one builds, one has to bear in mind that one is building for generations.

You have to be careful and creative about many things; the timelessness, a place of different incomes, all of which are timeless factors that make cities what they are. And they must be memorable.

By The Star

Sunway unit gets RM14.7m deals

SUNWAY Holdings Bhd's associate, Sunway Geotechnics (M) Sdn Bhd, has accepted contracts worth RM14.7 million at Bandar Springhill, Port Dickson, Negeri Sembilan.

The first contract from UCSI Education is for piling and pilecap works for the Medical Centre and Faculty of Medicine UCSI University for a block of 12-storey hospital, one block of two-storey M&E complex and one unit of guard house.

The second from UCSI Resort includes piling works for the construction of a 17-storey hotel with 319 units, 14-storey student hostel with 390 units, a single-storey restaurant and swimming pool and a three storey car park.

The medical university should be completed on March 21 2011 while the hotel is expected to be ready on February 27 2011.

By Business Times

Sunday, November 14, 2010

One of its kind Hayman

It is a bit of a coup for Mulpha Australia Ltd to have come to own Hayman Island, located off the east coast of Queensland in the Whitsunday Island group in Australia.

Of these group of islands, Hayman is closest to the Great Barrier Reef and is made up of a lush green sub-tropical forest. The island has an award-winning resort, simply called Hayman and is also owned and operated by Mulpha Australia.

Hayman is marketed as a private island destination, considering that it is the only resort on the island and will remain so, and seems to cater to the well-heeled.


Shane Green

For example, Hayman’s soon-to-be-launched private beach villas, which will boast dedicated butlers and a private pool, are being offered at whopping A$1,350 per night. Bookings for the first month are close to be fully taken up, says Shane Green, the resort’s general manager.

Mulpha Australia (a wholly-owned unit of Mulpha International Bhd) bought Hayman in 2004 as part of a portfolio of hotels offered by the Principal Hotel Group.

Green, who came on board in July, says plans are under way at “taking Hayman to the next level” by reinvesting money to upgrade current facilities at the resort.

“We’re looking at giving the visitor a new level of experience, with a focus on the spa and relaxation, a sort of re-imagination of Hayman if you like,” he says. Green is quick to add the changes would make use of the existing infrastructure of Hayman and that the refurbishment work would be completed in 24 months.

According to Lloyd Donaldson, the head of hotel investment for Mulpha Australia, the company is investing between A$20mil (RM62mil) and A$30mil into Hayman, of which A$5mil has already been mostly spent on the eight new beach villas which are coming onstream on Dec 10 this year.

Hayman has 212 rooms, consisting of suites, penthouses and beach villas.

More importantly, Mulpha Australia has secured the necessary approvals for building 42 private homes on Hayman. To be noted is that about 75% of the island is made up of a national park and so cannot be developed.

Hence, the 42 homes carry a sort of exclusivity premium. Adding that to the fact that these homes will have wide oceanic views, it’s no wonder these houses are being priced between A$15mil and A$20mil.

So far, three such houses have been sold and few more are close to being sold. The first house is about to be delivered to its new owner.

Green, an experienced hotelier, whose last postings were in the United States where he oversaw the development of major resorts and upscale residential projects in Los Angeles, Miami and Las Vegas, said that to ensure consistency of design and aesthetics, all the homes to be built on the island will have to be designed by the Kerry Hill architectural firm.

Kerry Hill is also the designer of Hayman’s new beach villas and also of Mulpha International’s planned luxurious bungalows in Bukit Tunku, Kuala Lumpur.

By The Star

Tuesday, November 2, 2010

Framework for disused mines

PETALING JAYA: A solid commercial framework that embraces environmental concerns is necessary to transform disused mines into useful land, said Malaysian Chamber of Mines (MCOM) president Datuk Seri Mohd Ajib Anuar.


»We are targeting to produce a blueprint on the use of ex-mining land in 12 months to be forwarded to the Government« DATUK SERI MOHD AJIB ANUAR

Mohd Ajib said there was a common perception by the public that former mines were barren and useless.

“This is not true. There is definitely life after a land is mined off its tin and other minerals.

“Ex-mining land can be used for many commercial and community-driven activities,” he told StarBiz yesterday after the launch of a coffee table book titled Tin Story: Heritage of Malaysia by MCOM.

The book was launched in conjunction with the inagural International Conference and Exhibition On the Rehabilitation, Restoration and Transformation Of Mining Land, which started yesterday and ends tomorrow.

The conference was to gather experts in various fields from 15 countries to meet, brainstorm and look at commercial as well as sustainable ways to maximise the use of former mines nationwide.

“We can learn from each other’s proven ways to commercialise idle ex-mining land to benefit people in a profitable and sustainable manner,” he said.

Mohd Ajib said MCOM, together with various parties including the Kuala Lumpur Tin Market, Ministry of Natural Resources and Environment, Department of Minerals and Geoscience as well as external parties were collaborating on two fronts.

“We are targeting to produce a blueprint on the use of ex-mining land in 12 months to be forwarded to the Government for approval and the development of a solid commercial framework for those interested in converting ex-mining land into useful land,” he said.

There are about 200,000 hectares of disused mines across the country, of which two-thirds have been used while the balance one-third remain idle.

Mohd Ajib, who is also Kuala Lumpur Tin Market chairman, said it had been proven that former mines could be used for various agricultural activities, property development and as a place to harvest renewable energy.

“We are in talks with several experts to kickstart various projects on ex-mining land and some of the projects are expected to commence once we get the nod from the authorities,” he said.

Mohd Ajib said there was also opportunity to market the talent (in the use of former mines) to other countries.

“We also believe these projects will create a lot of employment for Malaysians locally and abroad once they have developed the required skills.”

By The Star

Monday, November 1, 2010

PKNS to spend RM140.7m for Bukit Botak

The Selangor government, through the Selangor State Development Corporation (PKNS), will spend RM140.7 million to develop Bukit Botak.

Menteri Besar Tan Sri Abdul Khalid Ibrahim said the development would involve 1,422 single-storey terrace houses which would be offered to the landowners for RM99,000 each.

"If the landowners don't want the houses, PKNS will buy them from the landowners at RM170,000 per unit," he said after the project's ground breaking ceremony in Selayang today.

The houses bought by PKNS would then be offered to the public at a price based on the size of land per unit, he added.

"The project is part of the economic stimulus package introduced by the state government which among others focuses on redevelopment of stalled housing projects like Bukit Botak," Khalid said.

He said the project was being carried not for profit but a charity.

The Bukit Botak development project involves 201 acres and a resettlement of 2,300 families who have been waiting for over 20 years since the project began in 1986.

The houses are expected to be ready for occupation by June 2012.

By Bernama

Thursday, October 28, 2010

Hai-O entry into property may add risk: OSK

Hai-O Enterprise Bhd's venture into the property business will add more risk to the group, given that its multi-level marketing (MLM) business is still trying to recover locally, says OSK Research.

"While the venture may help generate future earnings and reduce its reliance on the more volatile MLM business, our concern is that this will further divert its focus on its current businesses and add risk to the group if not executed properly," it said in its research note today.

The research house said apart from the risk of venturing into a non-core property business, in which Hai-O has no expertise, the group's MLM business was still struggling from the impact of more stringent rules on direct marketing.

The property venture is the second non-core business Hai-O has gone into after it diversified into the heat transfer technology in August 2009.

OSK said given the recovery in buying sentiment among Hai-O's members was taking longer than expected (members were ordering less even for the saleable products), the management believed the MLM division would need more than six months to recover.

"Nonetheless, the Hai-O management is confident that with all the measures put in place by the task force set up to beef up performance, its MLM division would regain momentum and continue to drive the group's earnings," it said.

By Bernama

Wednesday, October 27, 2010

Cagamas may issue another sukuk worth up to RM2b

NATIONAL mortgage company Cagamas Bhd will issue another landmark sukuk, with size estimated to be between RM500 million and RM2 billion.

Chief executive officer Steven Choy said the size of the Islamic debt paper will depend on the home loans that banks sell to Cagamas.



"If they sell us big loans, it will be bigger, if small loans, it will be small," Choy told reporters on the sidelines of the Global Islamic Finance Forum in Kuala Lumpur yesterday.

On the significance of the latest debt paper, Choy said: "We haven't worked out yet on the assets that are coming in, so it is not the right time to talk about it."

It is understood that the sukuk will be launched by the year-end.

Sources told Business Times that the latest Cagamas sukuk will be based on Ar Rahnu concept, or pledging.

"It is termed as covered sukuk (an Islamic version of covered bond)," one of the sources said.

Covered sukuk is an Islamic version of covered bonds, which are debt securities backed by cash flows from mortgages or public sector loans. They are similar in many ways to asset-backed securities created in securitisation, but covered bond assets remain on the issuer's consolidated balance sheet.

Business Times had earlier reported that the new Cagamas sukuk will not incorporate "doubtful" principles, just like its previous benchmark Sukuk Al-Amanah Li Al-Istithmar (Sukuk ALIm), launched in mid-July.

While Sukuk ALIm was designed to meet the requirements of broader investors especially from the Middle East, Cagamas' new sukuk is expected to attract local institutional investors.

Last year, the country's biggest buyer of home loans sold RM11.3 billion worth of bonds, down by more than half from the record RM25 billion in 1999. About 40 per cent, or RM4.3 billion, were sukuk.

Cagamas issues bonds or debt securities to finance the purchase of housing loans from banks, freeing up lenders to give out more loans.

It is the second biggest issuer of debt papers after the government and carries the highest credit rating of "AAA" from local rating agencies. This means that its paper is highly sought after by investors because the probability of a default is very low.

By Business Times