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DESI'S NOTE: THE blogpost below (carries HIGHLIGHTS in RED THUS are done by YL,DESI) is reproduced with donplaypuks' expressed permission, no donation made:). SURF TO his website to read readers' interesting comments, via LINK: https://www.blogger.com/comment.g?blogID=8609172053888432914&postID=6539853306024597533, ENJOY! YL, DESi
10/08/2015
AFFIN BANK BUYS TRX LAND FOR $255 MILLION @ RM4,645 PER SQ FT? IS THIS PIE-IN-THE-SKY VALUATION AGAIN?
by donald trump, donplaypuks® intrepid correspondent for pie-in-the-sky land valuations affairs
Tabung Haji and Boustead (where Lodin is Deputy Chairman & MD) own 55% of Affin, while Tabung Haji owns 57% of Boustead!! What an incestuous corporate set-up of GLC's!
The
announcement by Affin Bank today that it had acquired a 0.51 hectare
parcel of land at the Tun Razak Exchange (TRX) development is astounding
news. CLICK HERE for the press announcement.
The
70-acre TRX land bank is of course owned by Kuala Lumpur International
Financial District SDn. Bhd., (KLIFD) which in turn is a wholly owned
subsidiary of 1MDB.
The math for per sq. ft. (psf) of land works out as follows:
1. Price of land = $255 million.
2. 1 hectare = 2.47105 acres.
3. 0.51 hectare = 2.47105 x 0.51 = 1.26 acres.
4. 1 acre = 43,560 sq. ft.
5. 0.51 hectare = 43,560 x 1.26 acres = 54,896 sq. ft.
6. Price paid per sq. ft. = $255,000,000/54,896 = $4,645 psf.
The
sale in May 2015 of 1.56 acres of TRX land to Tabung Haji for $189
million @ $2,774 psf raised a stink for more reasons than one, but
particularly, the valuation.
Now
we have an even greater phenomenally incredible valuation @ 67% more
than the price determined and paid by Tabung Haji, just 2 months ago!!??
What the hell is going on?
Once again, that name is in the thick of things - Tan Sri Lodin Wok who is Chairman of 1MDB as well as a director of Affin Bank.
What the hell is going on?
Once again, that name is in the thick of things - Tan Sri Lodin Wok who is Chairman of 1MDB as well as a director of Affin Bank.
Tabung Haji and Boustead (where Lodin is Deputy Chairman & MD) own 55% of Affin, while Tabung Haji owns 57% of Boustead!! What an incestuous corporate set-up of GLC's!
Of
course, Affin Bank's announcement mentions that Tan Sri Lodin Wok did
not participate in the decision making. China Wall and all that!
But, in the current state of affairs where a sitting PM claims that $2.6 billion TT'd from abroad to his personal bank a/c was a "donation" and that he did not personally benefit from it, does anyone believe in these statements and denials?
Even assuming the price of $2,774 psf paid by Tabung Haji in May for their 1.56 acres of TRX land is fair, which we all agree is grossly inflated anyway, the price for Affin Bank's 1.26 acres should have been only abbout $153 million.
So, there is an excess payment of $102 million ($255 -153 million)!!!!
Some claim this is for the plot ration of 16, which is a load of cobblers. With its Chairman Lodin's direct line to PM Najib and City Hall, Affin can apply for the increased plot ration on its own, at the cost of only making a formal application and architect's fees. That will come nowhere near $102 million.
But, in the current state of affairs where a sitting PM claims that $2.6 billion TT'd from abroad to his personal bank a/c was a "donation" and that he did not personally benefit from it, does anyone believe in these statements and denials?
Even assuming the price of $2,774 psf paid by Tabung Haji in May for their 1.56 acres of TRX land is fair, which we all agree is grossly inflated anyway, the price for Affin Bank's 1.26 acres should have been only abbout $153 million.
So, there is an excess payment of $102 million ($255 -153 million)!!!!
Some claim this is for the plot ration of 16, which is a load of cobblers. With its Chairman Lodin's direct line to PM Najib and City Hall, Affin can apply for the increased plot ration on its own, at the cost of only making a formal application and architect's fees. That will come nowhere near $102 million.
So,
should the MACC be called in with state-owned land prices sky-rocketing
stratospherically in dealings between GLC's and 1MDB? Are these really
genuine arm's length transactions and fair market value land prices?
Equally important is the question of the undue influence of "unseen hands" in concocting higher and higher land prices not transacted in the city, to bankroll 1MDB's acute cashflow deficit and inability to service its annual debt interest cost of about $2.5 billion!!
Is 1MDB due to make a $255 million interest payment in about 90 day's time. Is that how the land price was arrived at?
Does anyone really buy the statement that Affin has been negotiating with 1MDB for 3 years to conclude the deal at a record high price? That 2 GLC's need 3 years to reach agreement so that Affin could buy at the highest price in Malaysia? When 2 years ago Affin could have bought the land at about $1,000-1500 psf?
Some tend to think that no harm is done since Affin will be able to generate profits and create work for the building industry.
This is a false arguement. If parties are suspected of colluding to jack up land prices artificially to facilitate 1 party's urgent need for cash, that is a crime, twice over!
Twice over, because the party that buys at inflated prices will also not be able to maximise its profits for the benefit of its shareholders, many of whom are soldiers, sailors, airforce crew, police personnel etc who defend our country and maintain law and order, and the haj brigade from the Malay heartland, comprising farmers, fishermen, labourers, estate workers, clerks, retired pensioners on their last legs and the like who save every penny to make that one pilgrimage of their lives!
Have the Chairman, CEO and Board of Directors of these GLC's forgotten that they owe a fiduciary duty, AMANAH, to their brethren? To not cheat and rob them with fancy words, glossy brochures and $80 million APCO-inspired PR doublespeak?
Note too that the formal press announcement makes no mention of the price per square foot ($4,645) of land AT ALL!! This is deliberate as 1MDB knows that a comparison will be made by the public with the Tabung Haji purchase at $2,774 psf.
Next there is the unusual announcement of price per gross floor area @ $310 psf, which is a red herring. Of course, with high-rise buildings, the higher you go, the cheaper the psf construction cost, and the higher the profit. But, as I have said, Affin does not need to pay a whacking premium of $102 million to 1MDB for increased plot ratio; it can save a hundred million ringgit, and achieve it alone. In fact, it could go for a plot ration of 20 and achieve even higher profits without paying 1MDB 1 cent for it!!
Equally important is the question of the undue influence of "unseen hands" in concocting higher and higher land prices not transacted in the city, to bankroll 1MDB's acute cashflow deficit and inability to service its annual debt interest cost of about $2.5 billion!!
Is 1MDB due to make a $255 million interest payment in about 90 day's time. Is that how the land price was arrived at?
Does anyone really buy the statement that Affin has been negotiating with 1MDB for 3 years to conclude the deal at a record high price? That 2 GLC's need 3 years to reach agreement so that Affin could buy at the highest price in Malaysia? When 2 years ago Affin could have bought the land at about $1,000-1500 psf?
Some tend to think that no harm is done since Affin will be able to generate profits and create work for the building industry.
This is a false arguement. If parties are suspected of colluding to jack up land prices artificially to facilitate 1 party's urgent need for cash, that is a crime, twice over!
Twice over, because the party that buys at inflated prices will also not be able to maximise its profits for the benefit of its shareholders, many of whom are soldiers, sailors, airforce crew, police personnel etc who defend our country and maintain law and order, and the haj brigade from the Malay heartland, comprising farmers, fishermen, labourers, estate workers, clerks, retired pensioners on their last legs and the like who save every penny to make that one pilgrimage of their lives!
Have the Chairman, CEO and Board of Directors of these GLC's forgotten that they owe a fiduciary duty, AMANAH, to their brethren? To not cheat and rob them with fancy words, glossy brochures and $80 million APCO-inspired PR doublespeak?
Note too that the formal press announcement makes no mention of the price per square foot ($4,645) of land AT ALL!! This is deliberate as 1MDB knows that a comparison will be made by the public with the Tabung Haji purchase at $2,774 psf.
Next there is the unusual announcement of price per gross floor area @ $310 psf, which is a red herring. Of course, with high-rise buildings, the higher you go, the cheaper the psf construction cost, and the higher the profit. But, as I have said, Affin does not need to pay a whacking premium of $102 million to 1MDB for increased plot ratio; it can save a hundred million ringgit, and achieve it alone. In fact, it could go for a plot ration of 20 and achieve even higher profits without paying 1MDB 1 cent for it!!
The best comparison for land, apples to apples, is the per sq. ft.
statistic, together with whether the land status is unconverted
agricultural, commercial etc. No one can predict with any certainty
construction cost and per sq. ft, floor area cost 1 year from now,
especially with the ringgit plunging from $3.10 to $4 vs the US$ and
$6.28 vs the British pound!
This is conduct bordering on treason by desperate men who do not have the gumption to stand up to a desperate, rogue Prime Minister. The Prime Minister and Minister of Finance, Najib, and the governor of Bank Negara, Zeti, should both resign or be booted out immediately for this financial mismanagement and fiasco of gargantuan proportions.
This is conduct bordering on treason by desperate men who do not have the gumption to stand up to a desperate, rogue Prime Minister. The Prime Minister and Minister of Finance, Najib, and the governor of Bank Negara, Zeti, should both resign or be booted out immediately for this financial mismanagement and fiasco of gargantuan proportions.
Or, has someone made a boo-boo with the numbers?
Naah, I don't think so.
The jaw-dropping numbers are, sadly, for real.
Naah, I don't think so.
The jaw-dropping numbers are, sadly, for real.
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Donplaypuks® with pie-in-the-sky land valuations, man!
07/08/2015
HITLER ON 1GDB $46 BILLION FIASCO & $2.1 BILLION "DONATION"!!
The
atmosphere is now reminiscent of any number of rogue regimes and failed
states. The Inspector General of Poppadum is clearly a Stalin and Satan
who has decided to join forces with Hitler, against parliamentary
democracy and the wishes of the PEOPLE, to sabotage ongoing inquiries.
Nevertheless,
there's time to lampoon and caricaturise these ogres and monsters who
are the true enemies of the state, and laugh!
Perhaps, only a citizen's arrest by the leading citizens will breach the impasse!
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