Repositories for Rich Returns

Why is self-storage suddenly in favor?

Some investors believe that these dividend-paying companies will benefit from the housing crisis. They expect that the ranks of renters will swell as more people leave foreclosed homes or postpone buying their first homes because of tighter credit and falling values, and that those people will need repositories for their excess bric-a-brac.

Industry analysts agree that the sector is likely to hold up well through these economic woes. "It is recession resistant," said Michael Knott, a senior analyst at Green Street Advisors, the investment research firm. "More economic distress causes people to rent more, and, in fact, one of the storage companies said recently that Detroit was one of the best markets."

Indeed, Detroit had the highest foreclosure rate among the nation's 100 largest metropolitan areas last year, with nearly 5 percent of its households in some stage of foreclosure, according to RealtyTrac.com, the online foreclosure listing service.


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Bulgaria Consolidates Five Energy Companies into Holding

Bulgaria's government decided to set up an energy holding that will be composed of gas company Bulgargaz, power grid operator NEK, Kozloduy nuclear power plant, Maritza-Iztok II thermal power plant, and the Mini Maritza Iztok (Maritza Iztok mines). The consolidation of the five companies into the Bulgarian energy holding, one of the biggest energy companies in the region, is expected to be completed by the end of 2008. The assets of the holding will amount to EUR 4 B, its forecast annual profit is set at EUR 1,8 B. The state will hold a 100% stake in the energy holding. The Energy and Economy Ministry will hold up to 75% stake in each of the five energy companies, while the minority shares, varying from 25% to 49% will be transferred to the newly established company. The consolidation of the energy sector aims to restructure the corportate management and supervision of the companies included in the holding, prepare them for listing on local and international stock exchanges, boost their investment potential and improve their credit ratings.


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SEGi sharply reduces bank debts

PETALING JAYA: SEG International Bhd (SEGi), which sold its flagship campus in Kota Damansara to AmanahRaya Real Estate Investment Trust last year, has reduced its bank borrowings to 20% of equity from 100% previously.

It sold the college for RM145mil with an agreement to lease back the property for 15 years.

SEGi is the owner of SEGi College Malaysia, which itself is a consolidation of the Systematic and Prime education groups.

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13-02-2008: BHIC lands three contracts worth RM205m

PETALING JAYA: Boustead Heavy Industries Corporation Bhd (BHIC) has secured three new contracts totalling RM204.87 million, which boosted the group's direct order book to RM547 million.

The contracts was secured by its wholly owned subsidiary Boustead Penang Shipyard Sdn Bhd and two sub-subsidiaries, BHIC Petroleum Sdn Bhd and BHIC BOFORS Asia Sdn Bhd.

BHIC BOFORS received a letter of acceptance from the Ministry of Defence to supply gun spare parts worth RM9 million over three years, it announced yesterday.

It said Boustead Penang Shipyard had received a letter of award from Sarawak-based Sealink Sdn Bhd for the construction of two 7,000 deadweight oil and chemical carriers for a total of US$32.9 million (RM107.58) million.

On the third contract by BHIC Petroleum, the job awarded by Carigali-PPTEPI Operating Company Sdn Bhd was to construct the Muda Living Quarters Building for US$27 million, BHIC said.


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Stay current on tax changes

The good news about tax time this year is that you are likely to get some money.

Uncle Sam is worried about a recession, so he will reward most people who fill out a tax return with a rebate check to spend, save or invest.

The reward: up to $600 for singles, $1,200 for couples and another $300 per child for parents with children under 17.

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