YTL Corporation underweight-target price RM9.15

YTL Corp Launches Starhill Gallery in Dubai
"Although Dubai is known for its super mega shopping malls, we are confidentthat Starhill Gallery will create a mark for itself with its distinctivedesign, architecture and the unique shopping experience it will offer. I am gladthat ETA Star has chosen Starhill Gallery as a differentiator against the othermalls in Dubai," said Tan Sri (Dr) Francis Yeoh, Managing Director of YTL Corp.
YTL Corp Launches Starhill Gallery in Dubai Kuala Lumpur, 17 April 2007 YTL Corporation Berhad (YTL Corp) announced today the signing of an agreement tolaunch the celebrated Starhill Gallery concept in the Middle East. The agreementwas signed by Pintar Projek Sdn Bhd (Pintar Projek), a subsidiary of YTL Corp,and ETA Star Property Developers LLC (ETA Star), a leading property developer inthe United Arab Emirates (UAE). Pintar Projek is also the manager of StarhillReal Estate Investment Trust (Starhill REIT), which owns Starhill Gallery inMalaysia.Dubai's Starhill Gallery will be part of the US$410 million (RM1.4 billion)Starhill Towers & Gallery complex being developed by ETA Star. With a totalbuilt up area of approximately 1.6 million square feet, the Starhill Towers &Gallery will comprise state-of-the-art freehold offices, a 5-star hotel andDubai's own Starhill Gallery, all housed within a twin-tower waterfrontdevelopment in Dubai's Business Bay, in the vicinity of The Burj Dubai, whichwill be the tallest building in the world (now under construction). StarhillGallery Dubai will take up to 250,000 sq. ft.Starhill Gallery Dubai will be the first development outside Malaysia to carrythe unique, world-renowned Starhill brand conceptualised by YTL Corp, which hasredefined the specialised luxury retail niche market and unequivocally affirmedKuala Lumpur's place on the luxury retail map. There is much interest fromglobal real estate investors to house a Starhill Gallery in other key capitalcities around the world including London, Shanghai and Moscow, which arepresently being evaluated.A treasure trove of rich experiences, Malaysia's Starhill Gallery houses theworld's leading luxury brands in four unique, themed zones: Feast Village (foriconic restaurants), the Indulge Zone (for exclusive brands such as LouisVuitton), the Adorn Zone (for the world's most luxurious watch and jewellerybrands, including Jaeger-LeCoultre and Van Cleef & Arpels) and the Pamper Zone(for exclusive beauty and wellness related boutiques and spas, housed in a50,000 sq.ft. dedicated urban retreat). Pintar Projek expects to see positive contributions arising from licensing feesof approximately RM5.2 million (US$1.5 million), as well as an annual brandmanagement fee under a 4% gross profit-sharing arrangement for use of theStarhill Gallery brand for the new mall. There are no capital expenditurerequirements for YTL Corp. Pintar Projek will provide brand management servicesto ETA Star to ensure the integrity of the Starhill Gallery brand, whichincludes sharing expertise on architects and consultants to be engaged at thedesign and construction stage and product and service lines and tenant mix forthe mall thereafter, in line with Starhill Gallery in Kuala Lumpur.Tan Sri Dato' (Dr) Francis Yeoh Sock Ping, Managing Director of YTL Corp andChief Executive Officer of Pintar Projek, said, "We are proud to be associatedwith ETA Star, who has an impeccable record of developing billion-dollar premiumproperties in prime locations. "Although Dubai is known for its super mega shopping malls, we are confidentthat Starhill Gallery will create a mark for itself with its distinctive design,architecture and the unique shopping experience it will offer. I am glad thatETA Star has chosen Starhill Gallery as a differentiator against the other mallsin Dubai."Abid A. Junaid, Executive Director, ETA Star, said, "We are pleased to be theproperty developer for a project that houses the unique Starhill Gallery luxurymall owned by the Malaysian conglomerate YTL Corporation. The mall will be agallery of luxurious experiences in fashion, food, beauty and art and consistsof several dedicated zones."Commenting on the wider implications of this venture for the YTL Corp group, TanSri Dato' (Dr) Francis Yeoh also said, "I am looking forward to increasedopportunities in the Middle East and North Africa (MENA), especially in theareas of water, cement, power, retail and property."Construction of the Starhill Towers & Gallery is set to commence in the thirdquarter of 2007 and the project is scheduled for completion in the secondquarter of 2010. ETA Star has successfully launched projects close to 10 million sq ft in variousmaster development communities like Dubai Marina, Jumeriah Lake Towers, DubaiInternational Financial Centre, Business Bay and International Media ProductionZone. ETA Star's portfolio includes pioneering projects such as 23 Marina, AlManara, Liberty House, Gold Crest Executive, The Palm Jumeriah Residence and Spaand Grandeur Residences, The Summit, Pearl Residence, The Belvedere and GoldCrest Views-2. ETA Star is also carrying out similar projects in Oman, Qatar,Pakistan and India.
Listed on the Main Board of Bursa Malaysia Securities Berhad since 1985, YTLCorp is an integrated infrastructure developer with core activities includingpower generation and transmission, owning and managing water and seweragefacilities, property and hotel development, cement manufacturing, constructioncontracting and e-commerce initiatives. In line with its strategy of acquiring regulated assets operating underlong-term concessions, the Group owns a 33.5% stake in ElectraNet in Australia,a 100% stake in Wessex Water in the United Kingdom and a 35% stake in P.T. JawaPower in Indonesia in 2004. YTL Corp also has cement manufacturing, propertydevelopment and hotel interests in Singapore, Indonesia and Thailand.
ABOUT STARHILL REIT Listed on 16 December 2005 on the Main Board of Bursa Malaysia SecuritiesBerhad, Starhill REIT's principal investment strategy is to invest in adiversified portfolio of income-producing real estate, used primarily forretail, office and hospitality purposes, with particular focus on retail andhotel properties. Starhill REIT currently owns three prime properties situatedin Kuala Lumpur's Golden Triangle, namely, Starhill Gallery and the adjoining JWMarriott Hotel Kuala Lumpur, and 137 parcels and 2 accessory parcels of retail,office, storage and other spaces within Lot 10 Shopping Centre. Pintar Projek, Starhill REIT's manager, was incorporated in 1994 and is a70%-owned subsidiary of YTL Land Sdn Bhd, which in turn is wholly-ownedsubsidiary of YTL Corp.