SINGAPORE - FINANCE - Sabana Reit to buy Serangoon North property for $61m

www.businesstimes.com.sg  -Sabana Shari'ah Compliant Industrial Real Estate Investment Trust plans to acquire a Serangoon North Ave 5 property for $61 million.

Its manager, Sabana Real Estate Investment Management Pte Ltd, said on Wednesday that its trustee, HSBC Institutional Trust Services (Singapore) Limited, has entered into a sale and purchase agreement with Ban Teck Han Enterprise Co Pte Ltd for the purpose-built five storey light industrial building with a mezzanine level.  (source)

INDONESIA - BANKING - Open Savings Griya BNI Syariah, will you?

WWW.REPUBLIKA.CO.ID, JAKARTA - Bank Negara Indonesia (BNI) Syariah introduce new products in the TVC, the Savings Encyclopedia. These savings provide services to clients who want to save for home financing.
Shortage of customers for this is the weakness of the down payment when they wanted to buy a house. The percentage of down payment is high enough to make customers take a long time just to raise funds for the down payment only.
It is considered necessary BNI Syariah Savings made easy with the Games. These savings provide education to customers who want to own a home but still short of the amount of capital.
"Through these savings we asked them to save to fund a number of advances achieved," said Executive Vice President of BNI Syariah, Strong Rahardjo, told reporters on Tuesday (12/6).  (source)

INDONESIA - INVESTMENT FUNDS - Real Estate Investment Trusts Target Indonesia Five Years After Rules

www.thejakartaglobe.com - Al-’Aqar Healthcare Real Estate Investment Trust, Malaysia’s oldest Islamic REIT, is considering opening a trust in Indonesia as the nation reviews its first application five years after legalizing such property companies.

Kuala Lumpur-based Al-’Aqar, which already owns two hospitals in Indonesia, would look at registering a trust in the Southeast Asian country provided it gets tax incentives and clearer rules on foreigners owning land are implemented, Executive Director Yusaini Sidek said by e-mail yesterday.  (source)

INDONESIA - INVESTMENT FUND - Al-’Aqar mulls opening trust in Indonesia

www.btimes.com.my - Al-’Aqar Healthcare Real Estate Investment Trust, Malaysia’s oldest Islamic REIT, is considering opening a trust in Indonesia as the nation reviews its first application five years after legalizing such property companies.

Kuala Lumpur-based Al-’Aqar, which already owns two hospitals in Indonesia, would look at registering a trust in the Southeast Asian country provided it gets tax incentives and clearer rules on foreigners owning land are implemented, Executive Director Yusaini Sidek said by e-mail yesterday.(source)

INDONESIA - RATINGS - Bakrieland Development Tbk. downgrade

www.pefindo.com - PEFINDO lowered its ratings on PT Bakrieland Development Tbk. (ELTY or the Company) and the Company’s Bond I/2008 to “idBBB” from “idBBB+”. PEFINDO also lowered the rating of the Company’s Sukuk Ijarah I/2009 Serie B to “idBBB(sy)” from “idBBB+(sy)”.

The downgrade was attributable to the Company’s weakening cash flow protection ratios. In 2011, the Company’s EBITDA to debt ratio and EBITDA to interest (including capitalized interest) ratio were 0.1x and 0.9x, respectively. (source)

INDONESIA - REGULATIONS - Not subject to Rule Islamic Bank Advances

www.kompas.com - JAKARTA, KOMPAS.com - Rules loan to value ratio for mortgages (mortgage) loans and advances to a motor vehicle, apply for a new conventional-based bank. Islamic banks have not been affected by the rule.

Head of the Directorate of Banking Research and Regulation of Bank Indonesia, Filianingsih, ensuring that, when asked by reporters. "We have not been subject to the rules of Islamic banks," said Fili, in Jakarta, Tuesday (03/20/2012).

BI rules require that prospective home buyers with a building area exceeding 70 square meters using a mortgage from the bank, to pay a minimum down payment of 30 percent of the sales price. (source)

INDONESIA - FINANCE - Indonesia Sets Rules for Home, Vehicle Loans to Prevent Bubble

www.thejakartaglobe.com - The central bank introduced a regulation on Friday aimed at preventing potentially dangerous bubbles by encouraging prudent banking practices and curbing excessive consumer loan growth.

Under the regulation, Bank Indonesia will limit the size of housing loans and set a minimum for down payments for vehicle purchases.

“Considering that there’s an increasing demand for housing and automotive loans and an excessive growth in both segments, Bank Indonesia sees a need to introduce more prudent practices in loan disbursements,” the central bank said in a statement published on its Web site.  (source)

INDONESIA - FINANCE - BRI Syariah - Indonesian Ministry's Houses for Poor Will Cost Rp 70m

www.thejakartaglobe.com - The Ministry of Public Housing has pledged to build 12,000 homes that will retail for less than Rp 70 million ($7,700) in underdeveloped areas across Indonesia, according to a memorandum of understanding signed with the Ministry for Underdeveloped Areas this week.

“Based on the budget available, the Housing Ministry will build 60,000 homes in 2012 and some of it will be earmarked for underdeveloped areas. But the figure is still far from [Indonesia’s] housing needs of 4.8 million units,” Public Housing Minister Djan Faridz said on Tuesday.  (source)

INDONESIA - FINANCE - Fixed margins Becoming Attractions: Main Islamic mortgages

WWW.REPUBLIKA.CO.ID, JAKARTA --- Margin housing finance (mortgage) sharia is still considered to attract customers but not down to follow the conventional banking. The attractiveness of mortgage financing from the Islamic fixed margin over the murabaha financing for the contract.
Islamic mortgages remain interesting indicated the high value of the financing of a new applicant at Bank Syariah Mandiri (BSM). New applicant for the financing of Islamic mortgages in the BSM in the first month of 2012 has reached a value of more than Rp 30 billion. High interest of the public to raise Islamic mortgage financing to the sector BSM to Rp Rp 350 billion from 2010-2011. (source)

SINGAPORE -BANKING - Bureaucracy holds up Singapore

www.theislamicglobe.com - ingapore’s path to Shari’ah compliant home financing is being blocked by bureaucracy.
The Islamic Globe recently reported [see Issue 44] on the absence of Islamic home financing products despite the Monetary Authority of Singapore having legislated for a range of Shari’ah compliant Islamic banking structures.  (source)

WORLD - STANDARDS - AAOIFI Exposure Draft - Financial Accounting Standard No 26 on Investments in Real Estate

2012 AAOIFI - Exposure Draft of New Accounting Standard on Investment in Real Estate - January 2012

WORLD - STANDARDS - AAOIFI Exposure Draft - Financial Accounting Standard No 26 on Investments in Real Estate

Dear Sirs,

We would like to firstly thank you for your support of AAOIFI.

We are pleased to attach herewith the exposure draft of a proposed new accounting standard on investment in real estate.

We would like to invite comments and suggestions relating to the exposure draft. Comments and suggestions should be e-mailed to adv@aaoifi.com or eman@aaoifi.com before Sunday 8 April 2012.

We would also like to invite you to attend the public hearing meetings to discuss the exposure draft. The public hearing meetings are scheduled to be held tentatively as follows:

· in Manama, Bahrain on Thursday 22 March 2012 (10:00 a.m.); and
· in Doha, Qatar on Thursday 29 March 2012 (10:00 a.m.).

Please e-mail to adv@aaoifi.com or eman@aaoifi.com if you would like to attend the public hearing meetings. Further details of the meetings, including exact venues, will also be announced nearer to the above dates.

We look forward to receiving your comments and suggestions on the exposure draft, and to welcoming you to the public hearing meetings.

Thank you again for your support.

Thank you,

Best regards,

Eman Al-Shoala
, ,
Administrative Assistant
Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI)
P.O.Box: 1176
Manama, Kingdom of Bahrain
Phone: 973 17 244496
Fax: 973 17 250194

NOTE webmaster : just for some additional background, see amongst others:

IFSB, Capital adequacy requirements for sukuk securitizations and real estate investments, 2009 Guideline No 7, can be accessed  http://www.ifsb.org/standard/ifsb7.pdf

MIFC, Guidelines for Islamic Real Estate Investment Trusts, 2005, can be accessed http://www.mifc.com/index.php?ch=menu_foc_ifm&pg=menu_foc_ifm_gui&ac=368

Hasroleffendy Hassan, Islamic Property Financing in Malaysia: Critical Appraisals and Practical Recommendations, 2011 International Conference on Sociality and Economics Development
IPEDR vol.10 (2011) - can be accessed http://www.ipedr.com/vol10/69-S10015.pdf

INDONESIA - BANKING - Realize House of Dreams by CIMB Niaga Syariah

www.pkesinteraktif.com - Jakarta (9/2) - Having your own home is probably one of the dreams of every individual, especially for those who are already married. However, in reality the dream is not easy.

Home Ownership Financing is IB, a product of House Ownership Loan (mortgage) of Bank CIMB Niaga Syariah are present in the community and are ready to help realize the dream of dreams a good house. (source)

INDONESIA - BANKING - SMF Injects Again BSM $ 300 M

Jakarta (2 / 1) - PT Sarana Multigriya Financial (SMF) again provide financing to Bank Syariah Mandiri (BSM) of Rp 300 billion, to be used in residential financing program sharia. The cooperation is marked by the signing of the contract between the parties which took place at Wisma Mandiri 1, Jakarta, Thursday (12.29.11). (source)

INDONESIA - FINANCE - Prospect Property Financing the Sharia

Although global economic conditions are being hit by the crisis, it seems the property sector in Indonesia is still showing a positive trend. This can be seen from the growth rate property loans significantly.
Even from time to time property loans have consistently proven to grow above the level of credit growth in general. Total value of property loans at the end of quarter three banks last year reached USD 285.292 billion or 24.85% growth. While the overall growth of bank credit were approximately 20.5%.  (source)

INDONESIA - FINANCE - Islamic Financing Residential Market Still Great

JAKARTA - The potential for Islamic housing finance markets in the country is still large. Therefore, Islamic banks vying for new funds to local financial institutions in an effort to meet the huge market demand.
President Director of PT Sarana Multigriya Financial (SMF) Soeroto Erica told the press after doing the signing of cooperation here on Wednesday said the size of the market demand because demand for housing is quite high. Moreover, the level of bank lending rates also began to move down that encourages consumers increasingly active in credit demand in Islamic banks. (source)

AUSTRALIA - FINANCE - Property fund looks up downunder

Australia ’s leading Islamic finance house, MCCA, has just revealed financial results for the MCCA Income Fund – the country’s first Shari’ah compliant investment fund registered with ASIC – which achieved a return of 5.31% for the year.
Dr. Akhtar Kalam, chairman of MCCA, said: “The professionally managed fund established in 2009 will soon surpass A$15m ($15.3m) and invests mainly in residential mortgage investments in Victoria (49%) and New South Wales (46%).  (source)

INDONESIA - TAKAFUL - BNI Syariah wil focus on Griya Hasanah in 2012

Jakarta (18/11) - PT Bank Negara Indonesia (BNI) Syariah in the next year will focus on developing products Griya Hasanah. So it is believed, Home Ownership Credit (KPR) will dominate fortopolio bank.

Demikan it is conveyed by the Director of BNI Syariah, Rizqullah on the sidelines of a business seminar in Jakarta, Thursday (17/11). He revealed in 2012 Griya Hasanah will be product favored by BNI Syariah with a target of 60% of the overall financing products.  (source)

INDONESIA - FINANCE - BRI Syariah Provide mortgages for the Customer to the Lower Secondary

pkesinteraktif.com - Jakarta (25/10) - As a follow-up in cooperation with the Ministry of Public Housing (Kemenpera) to channel funds Liquidity Facility Financing Housing (FLPP), Bank Rakyat Indonesia (BRI) to introduce Sharia mortgage products Prosperous BRISyariah

BRI Sharia is the only Islamic Banking which towed Kemenpera to realize the prosperous home ownership. With mortgage products Prosperous, BRI Syariah can deliver financing for Mid-Income Communities (MBM) and Low-Income Communities (MBR). (source)

INDONESIA - FINANCE - Housing Loan? Apparently Many Consumers Choose the Islamic Bank tables

REPUBLIKA.CO.ID, JAKARTA --- Consumer Financing is still dominated by banks to housing finance. Targeted, such consumer financing to continue to increase.

For example, the distribution of consumer financing Muamalat has reached Rp 6 trillion in September. Of the total financing, 60 percent came from housing finance. (source)