YTL has been approached by international hotel and resort owners with proposals to buy their properties, which are being studied now.
ENERGY, hotel and infrastructure conglomerate YTL Corp Bhd (4677) aims to buy under-performing hotels and resorts internationally and turn them around, despite fears that the global economic turbulence may worsen next year, executive director Datuk Mark Yeoh Seok Kah said.
"We have, in the last 10 years, successfully built a platform to where we are now. We are now entering a growth phase. Assets are getting cheap and there are a lot of opportunities to buy. Next year will be a hunting year followed by acquisition," Yeoh said.
Yeoh told Business Times in an interview in Kuala Lumpur recently that YTL has been approached by international hotel and resort owners with proposals to buy their properties, which are being studied now.
YTL, with its war chest of more than RM10 billion, is in a good position to pick up some quality assets at depressed prices following the global financial meltdown.
Yeoh said the group will acquire a few assets based on its cash flow position, and also, if the price is right.
"We are very comfortable in the luxury segment. Our current portfolio comprises resorts, city hotels and quality properties. Any acquisition will have to fit into the three segments," Yeoh said.
YTL, through its hospitality arm YTL Hotels & Properties (YTLHP) Sdn Bhd, is involved in both ownership and management of properties, comprising a collection of internationally renowned, award-winning resorts, hotels and spas.
YTLHP owns Cameron Highlands Resort, JW Marriot KL, Spa Village Resort Tembok Bali, Villa Tassana in Phuket, and Bray House, Berkshire in the UK. It has also stakes in Majestic Malacca, The Chedi in Phuket, Vistana Hotel in KL, Penang and Kuantan and Tanjong Jara Resort.
All the properties are managed by YTLHP, including Pangkor Laut Resort and The Ritz-Carlton KL, which are majority owned by the Yeoh family.
"If there are opportunities to enhance our chances in real estate gain, we will consider. We will look at opportunities worldwide on a global basis," Yeoh said.
Yeoh said opportunities are aplenty due to the current correction in the property market and also because banks are consolidating.
He said there is also a play in hotel assets now.
"Banks are coming around with value propositions. But we will look at markets that we are familiar with," Yeoh said, citing YTL's investments in Indonesia, Singapore, the UK, Thailand and Australia.
By NST
December 30, 2008
December 26, 2008
Developer’s big plans for Pulau Indah
Central Spectrum (M) Sdn Bhd, a property developer in Pulau Indah, plans to launch more projects on the island next year as sales have been encouraging.
The company, which is developing a 2129.6ha in Pulau Indah into integrated township, has to date developed and sold 1,000ha worth a gross development value (GDV) of RM1.1bil.
The township comprises industrial (61%), residential (35%) and commercial (4%) properties.
“The Phase 1 of Selangor Halal Hub, consisting of 120ha, was sold to ten investors. The investment value, including land, buildings and machineries, will be about RM840mil,” said general manager Roslan Ahmad.
“The Phase 2, which is now open for registration, comprises 160ha with a GDV of RM250mil.”
Roslan said a further “two factories with investment of RM200mil will be operational next year and another two in the final planning stage,” adding that Central Spectrum’s projects on Pulau Indah were slated to last until 2014.
Central Spectrum is 76.7% owned by Kumpulan Hartanah Selangor Bhd and 23.3% by AMDB Bhd.
Pulau Indah has also attracted a Belgium-based oleo chemical group, which is set to commission its RM72mil plant, covering 3.0ha, by March 2009.
“This is our group first venture outside Europe. We chose Malaysia because it provides good access into China and US markets, as well as benefits from the currency exchange rate,” said managing director James de Caluwe. “Malaysia Development Industrial Authority has also approved a 10-year pioneer (tax incentive) status to our company,” he added.
Meanwhile, the Selangor government has called on the Federal Government to speed up infrastructure works and public services facilities in Pulau Indah.
“We hope that it could provide a police station, a fire station and a medical centre in Pulau Indah, as it currently does not have any, Selangor State Investment Centre’s (SSIC) chief executive officer Datuk Mohd Jabar Ahmad Kembali said
“Make sure the construction of a second access to the island, the South Klang Valley Expressway, to be completed on schedule in 2012, as it is important to reduce road congestion and attract more investors into the island,” he said after a briefing by Central Spectrum.
By The Star
The company, which is developing a 2129.6ha in Pulau Indah into integrated township, has to date developed and sold 1,000ha worth a gross development value (GDV) of RM1.1bil.
The township comprises industrial (61%), residential (35%) and commercial (4%) properties.
“The Phase 1 of Selangor Halal Hub, consisting of 120ha, was sold to ten investors. The investment value, including land, buildings and machineries, will be about RM840mil,” said general manager Roslan Ahmad.
“The Phase 2, which is now open for registration, comprises 160ha with a GDV of RM250mil.”
Roslan said a further “two factories with investment of RM200mil will be operational next year and another two in the final planning stage,” adding that Central Spectrum’s projects on Pulau Indah were slated to last until 2014.
Central Spectrum is 76.7% owned by Kumpulan Hartanah Selangor Bhd and 23.3% by AMDB Bhd.
Pulau Indah has also attracted a Belgium-based oleo chemical group, which is set to commission its RM72mil plant, covering 3.0ha, by March 2009.
“This is our group first venture outside Europe. We chose Malaysia because it provides good access into China and US markets, as well as benefits from the currency exchange rate,” said managing director James de Caluwe. “Malaysia Development Industrial Authority has also approved a 10-year pioneer (tax incentive) status to our company,” he added.
Meanwhile, the Selangor government has called on the Federal Government to speed up infrastructure works and public services facilities in Pulau Indah.
“We hope that it could provide a police station, a fire station and a medical centre in Pulau Indah, as it currently does not have any, Selangor State Investment Centre’s (SSIC) chief executive officer Datuk Mohd Jabar Ahmad Kembali said
“Make sure the construction of a second access to the island, the South Klang Valley Expressway, to be completed on schedule in 2012, as it is important to reduce road congestion and attract more investors into the island,” he said after a briefing by Central Spectrum.
By The Star
December 18, 2008
Property prices expected to fall 5-10pc next year
PROPERTY prices will fall by 5-10 per cent from the first quarter of next year as a slower economy cools demand, a property consultant said.
The slump in prices will be for properties across the board, Association of Valuers & Property Consultants in Private Practice Malaysia (PEPS) president James Wong Kwong Onn said.
He said properties below the RM300,000 radar and luxury condominiums tagged at above RM750,000 are already hit from a slower economy.
Wong believes there will be a correction in the housing market next year.
"There will be fewer launches due to poor demand. Prices will fall, but gradually, due to lack of confidence in the market," Wong said after a media briefing on the 2nd Malaysian Property Summit 2009 in Kuala Lumpur yesterday.
But Wong said a housing bubble is unlikely although the market will be depressed by a slew of bearish factors like poor economic data and worries over increasing credit market losses in the US.
He said Malaysia's real estate is resilient enough to withstand the onslaught of the economic turmoil.
His confidence is boosted by the RM7 billion economic stimulus package announced last month.
Wong expects Malaysia's real estate to also fare better than Singapore, Thailand and Hong Kong as the latter three are more exposed to the US-led subprime crises.
"Property prices in these countries have also shot up by 100 per cent or more whereas the upward price in Malaysia was gradual. There is room to grow so we will definitely fare better," he added.
Meanwhile, Sime Darby Property Bhd managing director Datuk Tunku Putra Badlishah said the company has new products lined up for next year but will remain cautious when planning the launches.
"We are fortunate as most of our landbank is in prime areas and a majority of our market is owner-occupied. Despite the market shrinking, we believe it has eased a little," he said.
In the past one month, Sime Darby has been able to sell 241 properties worth RM141 million located within its 10 on-going townships.
Sales were boosted by its "Guaranteed Buy Back" scheme, instilling confidence in buyers.
The 2nd property summit, organised by PEPS, will be held on January 20 2009 at the Sime Darby Convention Centre, Kuala Lumpur. More than 200 participants from various sectors are expected to attend.
By NST
The slump in prices will be for properties across the board, Association of Valuers & Property Consultants in Private Practice Malaysia (PEPS) president James Wong Kwong Onn said.
He said properties below the RM300,000 radar and luxury condominiums tagged at above RM750,000 are already hit from a slower economy.
Wong believes there will be a correction in the housing market next year.
"There will be fewer launches due to poor demand. Prices will fall, but gradually, due to lack of confidence in the market," Wong said after a media briefing on the 2nd Malaysian Property Summit 2009 in Kuala Lumpur yesterday.
But Wong said a housing bubble is unlikely although the market will be depressed by a slew of bearish factors like poor economic data and worries over increasing credit market losses in the US.
He said Malaysia's real estate is resilient enough to withstand the onslaught of the economic turmoil.
His confidence is boosted by the RM7 billion economic stimulus package announced last month.
Wong expects Malaysia's real estate to also fare better than Singapore, Thailand and Hong Kong as the latter three are more exposed to the US-led subprime crises.
"Property prices in these countries have also shot up by 100 per cent or more whereas the upward price in Malaysia was gradual. There is room to grow so we will definitely fare better," he added.
Meanwhile, Sime Darby Property Bhd managing director Datuk Tunku Putra Badlishah said the company has new products lined up for next year but will remain cautious when planning the launches.
"We are fortunate as most of our landbank is in prime areas and a majority of our market is owner-occupied. Despite the market shrinking, we believe it has eased a little," he said.
In the past one month, Sime Darby has been able to sell 241 properties worth RM141 million located within its 10 on-going townships.
Sales were boosted by its "Guaranteed Buy Back" scheme, instilling confidence in buyers.
The 2nd property summit, organised by PEPS, will be held on January 20 2009 at the Sime Darby Convention Centre, Kuala Lumpur. More than 200 participants from various sectors are expected to attend.
By NST
December 15, 2008
Foreigners still keen on Malaysian properties
Landmark office transactions concluded in the past 12 months show that foreigners are still keen in the local property market.
Of the nine transactions that were concluded this year, four involved foreign buyers or foreign-related funds. According to data compiled by Rahim & Co Research, the outlook for office property market looked good with more transactions expected going forward.
“Foreign investors like Malaysia for its stability as they feel it is not as volatile compared with markets in Vietnam, Hong Kong and Singapore. The stable economic outlook and good infrastructure are also plus factors for the real estate sector,” the research house said.
This year, several en bloc transactions had taken place, including the sale of Menara Standard Chartered to ING for RM300mil or at RM934 per sq ft, and Pearl@KLCC to Flora Bliss for RM550mil.
There are other several foreign funds that are looking to purchase real estates on an en bloc basis.
“Prime Grade A office buildings in the Golden Triangle and around the KLCC (Kuala Lumpur City Centre) vicinities are almost 100% occupied now. It is for this reason that we expect the few new office buildings in the Golden Triangle to do well in terms of occupancy,” it noted.
Interested buyers for the two office buildings that are up for sale in Kuala Lumpur - Horizon Commercial Centre in Bangsar South and Menara UOA Bangsar Tower A along Jalan Bangsar - comprise mainly foreigners.
The asking price is between RM900 and RM1,000 per sq ft, a significant increase from RM700 to RM900 per sq ft last year. About 3 million sq ft of new office space will be ready next year while the average annual take-up is only about 1.5 million sq ft. The balance space is mostly for owner occupation by big corporations and government departments.
Meanwhile, rental rates - which have been rising over the first half of this year - have started stabilising. Excluding the Petronas Twin Towers, Grade A office space in Kuala Lumpur’s Golden Triangle and around the KLCC are commanding monthly rents of RM7 to RM9 per sq ft.
Reflecting the prevailing pensive mood, Savills Rahim & Co said some companies entering Malaysia for the first time were not commiting to long tenancy or lease of office space but had chosen to occupy service offices instead.
They want the flexibility to watch the market’s performance next year before signing on the tenancy papers. Zerin Properties chief executive officer Previndran Singe said the office market would still see strong demand as the economy was still growing, although at a slower rate.
On the growing number of aborted property deals, Rahim & Co Research said: “The global financial crisis is affecting most institutional funds in various ways, thus they are taking a step back to monitor the situation.”
Banks are also starting to tighten credits and the credit crunch will make it increasingly difficult for investors and buyers to borrow to fund property deals.
Last month, IOI Corp Bhd forfeited a deposit of RM73.4mil when it withdrew from its proposed purchase of Menara Citibank in Jalan Ampang, Kuala Lumpur. The 50-storey Grade A office building has a net lettable area of 733,626 sq ft and a 99% occupancy rate.
Elsewhere, the gloomy global economic outlook has also resulted in aborted deals. In Singapore, the deal by City Developments Ltd’s 53%-owned London-listed Millennium & Copthorne (M&C) to sell The Seoul Hilton to Kangho AMC Co has fallen through. Kangho had agreed to purchase the hotel for S$596mil in June and had paid a non-refundable deposit of 10% plus another 1 billion won for two payment extensions.
These amounts will be forfeited and M&C will book S$60.6mil as extraordinary gain in the current financial year and continue to manage the Seoul Hilton.
With Malaysia’s gross domestic product growth having slowed down to 4.7% in the third quarter this year from 6.3% in the second quarter and 7.1% in the first quarter, Rahim & Co Research is anticipating a further slowdown in the final quarter.
“The global economic crisis is taking its time to impact Malaysia but in 2009 the effect on the country will be more pronounced.We expect some companies, especially in the financial sector, to reduce their headcount or at least stop recruitment.
“This may lead to the consolidation of separate departments or offices into one premise and new office buildings outside of the city centre may prove more popular,” the research house said.
By The Star
Of the nine transactions that were concluded this year, four involved foreign buyers or foreign-related funds. According to data compiled by Rahim & Co Research, the outlook for office property market looked good with more transactions expected going forward.
“Foreign investors like Malaysia for its stability as they feel it is not as volatile compared with markets in Vietnam, Hong Kong and Singapore. The stable economic outlook and good infrastructure are also plus factors for the real estate sector,” the research house said.
This year, several en bloc transactions had taken place, including the sale of Menara Standard Chartered to ING for RM300mil or at RM934 per sq ft, and Pearl@KLCC to Flora Bliss for RM550mil.
There are other several foreign funds that are looking to purchase real estates on an en bloc basis.
“Prime Grade A office buildings in the Golden Triangle and around the KLCC (Kuala Lumpur City Centre) vicinities are almost 100% occupied now. It is for this reason that we expect the few new office buildings in the Golden Triangle to do well in terms of occupancy,” it noted.
Interested buyers for the two office buildings that are up for sale in Kuala Lumpur - Horizon Commercial Centre in Bangsar South and Menara UOA Bangsar Tower A along Jalan Bangsar - comprise mainly foreigners.
The asking price is between RM900 and RM1,000 per sq ft, a significant increase from RM700 to RM900 per sq ft last year. About 3 million sq ft of new office space will be ready next year while the average annual take-up is only about 1.5 million sq ft. The balance space is mostly for owner occupation by big corporations and government departments.
Meanwhile, rental rates - which have been rising over the first half of this year - have started stabilising. Excluding the Petronas Twin Towers, Grade A office space in Kuala Lumpur’s Golden Triangle and around the KLCC are commanding monthly rents of RM7 to RM9 per sq ft.
Reflecting the prevailing pensive mood, Savills Rahim & Co said some companies entering Malaysia for the first time were not commiting to long tenancy or lease of office space but had chosen to occupy service offices instead.
They want the flexibility to watch the market’s performance next year before signing on the tenancy papers. Zerin Properties chief executive officer Previndran Singe said the office market would still see strong demand as the economy was still growing, although at a slower rate.
On the growing number of aborted property deals, Rahim & Co Research said: “The global financial crisis is affecting most institutional funds in various ways, thus they are taking a step back to monitor the situation.”
Banks are also starting to tighten credits and the credit crunch will make it increasingly difficult for investors and buyers to borrow to fund property deals.
Last month, IOI Corp Bhd forfeited a deposit of RM73.4mil when it withdrew from its proposed purchase of Menara Citibank in Jalan Ampang, Kuala Lumpur. The 50-storey Grade A office building has a net lettable area of 733,626 sq ft and a 99% occupancy rate.
Elsewhere, the gloomy global economic outlook has also resulted in aborted deals. In Singapore, the deal by City Developments Ltd’s 53%-owned London-listed Millennium & Copthorne (M&C) to sell The Seoul Hilton to Kangho AMC Co has fallen through. Kangho had agreed to purchase the hotel for S$596mil in June and had paid a non-refundable deposit of 10% plus another 1 billion won for two payment extensions.
These amounts will be forfeited and M&C will book S$60.6mil as extraordinary gain in the current financial year and continue to manage the Seoul Hilton.
With Malaysia’s gross domestic product growth having slowed down to 4.7% in the third quarter this year from 6.3% in the second quarter and 7.1% in the first quarter, Rahim & Co Research is anticipating a further slowdown in the final quarter.
“The global economic crisis is taking its time to impact Malaysia but in 2009 the effect on the country will be more pronounced.We expect some companies, especially in the financial sector, to reduce their headcount or at least stop recruitment.
“This may lead to the consolidation of separate departments or offices into one premise and new office buildings outside of the city centre may prove more popular,” the research house said.
By The Star
December 11, 2008
Sime sells properties worth RM100mil
Home buyers and property investors have snapped up over RM100mil worth of properties at Sime Darby Property’s Parade of Homes campaign.
Since the campaign was launched on Nov 14, visitors have been making their way to Sime Darby Property’s 10 townships in prime locations stretching from Shah Alam, Ampang and Subang Jaya to Nilai in Negri Sembilan.
More than 160 properties were sold in a two-week period.
”We’re definitely feeling very upbeat with the encouraging response from home buyers and investors alike,” Sime Darby Property managing director Datuk Tunku Putra Badlishah said in a statement.
According to him, sales to-date showed that Malaysians would continue to invest in the property market, given the right incentives and assurance that they had made a safe investment despite the current economic sentiment.
Sime Darby Property was offering a “guaranteed buy-back” scheme which is valid until June 15, 2009, the statement said.
Under the scheme, purchasers during the campaign period can sell back their properties to Sime Darby Property with “no questions asked”.
By The Star
Since the campaign was launched on Nov 14, visitors have been making their way to Sime Darby Property’s 10 townships in prime locations stretching from Shah Alam, Ampang and Subang Jaya to Nilai in Negri Sembilan.
More than 160 properties were sold in a two-week period.
”We’re definitely feeling very upbeat with the encouraging response from home buyers and investors alike,” Sime Darby Property managing director Datuk Tunku Putra Badlishah said in a statement.
According to him, sales to-date showed that Malaysians would continue to invest in the property market, given the right incentives and assurance that they had made a safe investment despite the current economic sentiment.
Sime Darby Property was offering a “guaranteed buy-back” scheme which is valid until June 15, 2009, the statement said.
Under the scheme, purchasers during the campaign period can sell back their properties to Sime Darby Property with “no questions asked”.
By The Star
December 10, 2008
KPWG: Consider land buys now
The global economic crisis sparked off by the subprime mortage mess in the United States has put faith in property investment into a pickle. But not so for KPWG International (M) Sdn Bhd, a specialist in flexible and high yielding investment products centred on land and properties.
It said it strongly supports investing in land and properties, especially now with the numerous "lucrative offers and so few takers".
According to KPWG managing director and a founding member Paul Baker, investments have also to take into consideration the speculative nature of bonds and shares which, he said, are constantly subjected to fluctuating transactions and global sentiments while "land is a solid investment".
"When stock markets plummet and share prices plunge to their lowest, land and land-based products have demonstrated their resilience. The bottom line is, land investments are less volatile than stock markets," Baker said, adding that KPWG has a team of property consultants to locate strategic sites for Malaysians to invest in.
Its offerings include the Tai-Pan Resort and Condominium comprising 60 exclusive condo-resort hotel units located in the Thai royal resort town of Hua Hin in the Gulf of Thailand and managed by the Tai-Pan Hotel group, well known in the Indochine region.
Baker said KPWG is undertaking its investments through its two brands, Land Eye and Paradise Found. The former sources for land investment opportunities globally while the latter seeks mid-range and luxury properties and developments in thriving resort locations in Asia Pacific.
"We have land products in the region such as plots on which projects can be built on almost instantly and plots under agriculture status that can be converted for residential use.
"Currently, KPWG is negotiating for a large project in Indonesia's Bintan Island as well as several land deals in the United Kingdom. We are also eyeing Russia, Japan and Korea for various investment choices," he added.
By New Strait Times
It said it strongly supports investing in land and properties, especially now with the numerous "lucrative offers and so few takers".
According to KPWG managing director and a founding member Paul Baker, investments have also to take into consideration the speculative nature of bonds and shares which, he said, are constantly subjected to fluctuating transactions and global sentiments while "land is a solid investment".
"When stock markets plummet and share prices plunge to their lowest, land and land-based products have demonstrated their resilience. The bottom line is, land investments are less volatile than stock markets," Baker said, adding that KPWG has a team of property consultants to locate strategic sites for Malaysians to invest in.
Its offerings include the Tai-Pan Resort and Condominium comprising 60 exclusive condo-resort hotel units located in the Thai royal resort town of Hua Hin in the Gulf of Thailand and managed by the Tai-Pan Hotel group, well known in the Indochine region.
Baker said KPWG is undertaking its investments through its two brands, Land Eye and Paradise Found. The former sources for land investment opportunities globally while the latter seeks mid-range and luxury properties and developments in thriving resort locations in Asia Pacific.
"We have land products in the region such as plots on which projects can be built on almost instantly and plots under agriculture status that can be converted for residential use.
"Currently, KPWG is negotiating for a large project in Indonesia's Bintan Island as well as several land deals in the United Kingdom. We are also eyeing Russia, Japan and Korea for various investment choices," he added.
By New Strait Times
December 5, 2008
Zerin rules out property slump next year
MALAYSIA'S property market is expected to be resilient next year due to lower borrowing costs and as demand from foreign buyers remain strong, an industry executive said.
"It will be harder to do deals next year but there won't be a slump. People are still looking for homes to stay and invest in," said Previndran Singhe, chief executive officer of real estate consultancy Zerin Properties.
There will be a slew of new residential property launches from the second quarter next year and these are high-end products.
Key launches next year include 6 Stonor by Tan & Tan Development; The Pearl@KLCC by Malton Bhd; Platinum Park Residences by Naza TTDI; The Oval by Guocoland (M) Bhd; and Idaman Bintang by TA Properties Sdn Bhd.
Previndran said there is demand from locals, and investors from Europe and the Middle East for completed properties and new products in the Klang Valley.
"We are seeing more genuine buyers from these regions," he said.
Previndran said while the price of new landed and high-rise properties will be relatively similar to current levels, there will be more attractive marketing schemes.
"Developers are not going to lower property prices as construction cost is still volatile. What they will do is offer more goodies," he said.
He also expects a few en bloc deals over the next few months.
"There will also be more sales and leaseback, which will be fed into REITs," Previndran said at a property outlook briefing in Kuala Lumpur yesterday.
Zerin also introduced its new website www.expathomekl.com for expatriates at the briefing.
By NST
"It will be harder to do deals next year but there won't be a slump. People are still looking for homes to stay and invest in," said Previndran Singhe, chief executive officer of real estate consultancy Zerin Properties.
There will be a slew of new residential property launches from the second quarter next year and these are high-end products.
Key launches next year include 6 Stonor by Tan & Tan Development; The Pearl@KLCC by Malton Bhd; Platinum Park Residences by Naza TTDI; The Oval by Guocoland (M) Bhd; and Idaman Bintang by TA Properties Sdn Bhd.
Previndran said there is demand from locals, and investors from Europe and the Middle East for completed properties and new products in the Klang Valley.
"We are seeing more genuine buyers from these regions," he said.
Previndran said while the price of new landed and high-rise properties will be relatively similar to current levels, there will be more attractive marketing schemes.
"Developers are not going to lower property prices as construction cost is still volatile. What they will do is offer more goodies," he said.
He also expects a few en bloc deals over the next few months.
"There will also be more sales and leaseback, which will be fed into REITs," Previndran said at a property outlook briefing in Kuala Lumpur yesterday.
Zerin also introduced its new website www.expathomekl.com for expatriates at the briefing.
By NST
December 2, 2008
An orchard in the backyard
HIJAUAN Heights Sdn Bhd is transforming 1,000 acres of land in Pedas, Negri Sembilan into a lifestyle property development that includes bungalows with orchards, outdoor activities and a clubhouse as well as round the clock security.
It is for this reason that its director, Nor Azmi Talib believes the unique lifestyle project called “Hijauan Heights” will be a hit.
The development of Hijauan Heights started about three years ago on a plot of land that belonged to Telekom Malaysia Bhd (TM).
Through a subsidiary, TM Facilities, the company did a joint-land development agreement with a landscape company, IDH-IndahHijau (M) Sdn Bhd.
TM provided the development land while Hijauan Heights, a subsidiary of IndahHijau was responsible for the development, sales and marketing of the project.
Hijauan Heights plans to complete the first phase of the development by May next year.
According to Nor Azmi, the gross development value of the first phase is about RM79mil.
“TM will develop the structure for telecommunication that would include 3G connectivity. We have already divided the project into four phases scheduled for full completion by 2013. The 1,000 acres have already been subdivided to a minimum of one acre each to be offered to buyers,” says Nor Azmi, adding that in total about 591 lots have already been divided while the rest would be used for other developments such as building roads, a clubhouse and water tank.
“Here at Hijauan Heights, we offer you not just the orchard and clubhouse but also outdoor activities such as paragliding, fishing, boating and camping site to name a few. Plus, all the bungalows that we built are fully-furnished,” he says.
The location, Nor Azmi says, is another plus point as it is only 20 minutes to Seremban and an hour’s drive from Kuala Lumpur.
He is confident that despite the softening property market, the project with its unique features will be able to attract buyers.
“Our concept is very different from other developers. We are not doing mass development where thousands of houses are built. We are offering buyers a lifestyle concept whereby you can live in a green surrounding, do outdoor activities and also enjoy all the fruits from the orchard.
“Plus, you don’t have to worry about safety as it’s gated,” he says.
Nor Azmi says Hijauan Heights offers six types of four bedroom bungalows with an average built-up of 2,000 sq ft. It also provides three years of free maintenance for the orchard.
“In total, there would be about 129 units of four bedroom bungalows in this first phase plus the clubhouse. Since the soft launch on Aug 2, about 51 units had been sold,” says Nor Azmi.
He adds that the company is very selective about the choice of trees to be planted so that the buyers could taste all the fruits without waiting for the fruit season to come.
“About 40 fruit trees such as guava, rambutans, mango and longan have already been planted on each acre. For that, you don’t need to wait until the fruit season to savour the fruits as it will be a continuing fruiting season,” he says.
General manager Ungku Amir Ungku Sulaiman says the achievement of the company to subdivide the whole land into one acre individual title lots was something to be proud of.
“It’s not easy to subdivide this massive land into individual lots. It took us about two to three years just to do that,” he says.
He adds that this was an opportunity for future investments for buyers as the one acre land could be divided into more plots if they decide to split the land for their children.
The 1,000-acre freehold land at Hijauan Heights offers a minimum of one acre with six types of fully furnished bungalows to choose from with 40 type of trees planted. The prices start from RM750,000 to RM900,000 depending on the size of the land acquired.
By The Star
It is for this reason that its director, Nor Azmi Talib believes the unique lifestyle project called “Hijauan Heights” will be a hit.
The development of Hijauan Heights started about three years ago on a plot of land that belonged to Telekom Malaysia Bhd (TM).
Through a subsidiary, TM Facilities, the company did a joint-land development agreement with a landscape company, IDH-IndahHijau (M) Sdn Bhd.
TM provided the development land while Hijauan Heights, a subsidiary of IndahHijau was responsible for the development, sales and marketing of the project.
Hijauan Heights plans to complete the first phase of the development by May next year.
According to Nor Azmi, the gross development value of the first phase is about RM79mil.
“TM will develop the structure for telecommunication that would include 3G connectivity. We have already divided the project into four phases scheduled for full completion by 2013. The 1,000 acres have already been subdivided to a minimum of one acre each to be offered to buyers,” says Nor Azmi, adding that in total about 591 lots have already been divided while the rest would be used for other developments such as building roads, a clubhouse and water tank.
“Here at Hijauan Heights, we offer you not just the orchard and clubhouse but also outdoor activities such as paragliding, fishing, boating and camping site to name a few. Plus, all the bungalows that we built are fully-furnished,” he says.
The location, Nor Azmi says, is another plus point as it is only 20 minutes to Seremban and an hour’s drive from Kuala Lumpur.
He is confident that despite the softening property market, the project with its unique features will be able to attract buyers.
“Our concept is very different from other developers. We are not doing mass development where thousands of houses are built. We are offering buyers a lifestyle concept whereby you can live in a green surrounding, do outdoor activities and also enjoy all the fruits from the orchard.
“Plus, you don’t have to worry about safety as it’s gated,” he says.
Nor Azmi says Hijauan Heights offers six types of four bedroom bungalows with an average built-up of 2,000 sq ft. It also provides three years of free maintenance for the orchard.
“In total, there would be about 129 units of four bedroom bungalows in this first phase plus the clubhouse. Since the soft launch on Aug 2, about 51 units had been sold,” says Nor Azmi.
He adds that the company is very selective about the choice of trees to be planted so that the buyers could taste all the fruits without waiting for the fruit season to come.
“About 40 fruit trees such as guava, rambutans, mango and longan have already been planted on each acre. For that, you don’t need to wait until the fruit season to savour the fruits as it will be a continuing fruiting season,” he says.
General manager Ungku Amir Ungku Sulaiman says the achievement of the company to subdivide the whole land into one acre individual title lots was something to be proud of.
“It’s not easy to subdivide this massive land into individual lots. It took us about two to three years just to do that,” he says.
He adds that this was an opportunity for future investments for buyers as the one acre land could be divided into more plots if they decide to split the land for their children.
The 1,000-acre freehold land at Hijauan Heights offers a minimum of one acre with six types of fully furnished bungalows to choose from with 40 type of trees planted. The prices start from RM750,000 to RM900,000 depending on the size of the land acquired.
By The Star
November 28, 2008
Gadang in running to win RM500m Abu Dhabi jobs
GADANG Holdings Bhd (9261) , a construction and property firm, may win two contracts worth RM500 million to build residential towers in Abu Dhabi in the United Arab Emirates by the middle of next year.
It will soon sign a pact with a local party, believed to be from the royal family of Abu Dhabi, to form a joint-venture company.
Gadang's partner will hold a majority stake in the venture, which will source for local funds in Abu Dhabi for the project, managing director and chief executive officer Tan Sri Kok Onn said.
Besides residential, it will also build office and commercial blocks, Kok said after the company's shareholders meeting in Kuala Lumpur yesterday. "There is great demand for housing and commercial. There are areas in Abu Dhabi where foreigners can own properties, so there are a lot of investors coming here to buy," he said.
The two contracts are part of the over RM2 billion jobs Gadang is bidding for in Abu Dhabi.
In addition, Gadang is gearing to launch condominiums, semi-detached homes and bungalows worth over RM100 million in Tanjung Bungah, Penang, by the middle of next next year.
It is also waiting for the final results of a tender it submitted two years ago to build a RM200 million sewerage treatment plant in Malacca, Kok said.
"We have a lot in the pipeline. Earnings-wise, we hope to do better next year, driven by current projects and also because construction material prices have dropped. This will improve the situation for us," Kok said.
For the year to May 2007, the company posted a net profit of RM7.5 million on the back of RM172 million revenue.
Gadang expects to benefit from projects under the Ninth Malaysia Plan that the government will call for next year.
By The New Strait Times
It will soon sign a pact with a local party, believed to be from the royal family of Abu Dhabi, to form a joint-venture company.
Gadang's partner will hold a majority stake in the venture, which will source for local funds in Abu Dhabi for the project, managing director and chief executive officer Tan Sri Kok Onn said.
Besides residential, it will also build office and commercial blocks, Kok said after the company's shareholders meeting in Kuala Lumpur yesterday. "There is great demand for housing and commercial. There are areas in Abu Dhabi where foreigners can own properties, so there are a lot of investors coming here to buy," he said.
The two contracts are part of the over RM2 billion jobs Gadang is bidding for in Abu Dhabi.
In addition, Gadang is gearing to launch condominiums, semi-detached homes and bungalows worth over RM100 million in Tanjung Bungah, Penang, by the middle of next next year.
It is also waiting for the final results of a tender it submitted two years ago to build a RM200 million sewerage treatment plant in Malacca, Kok said.
"We have a lot in the pipeline. Earnings-wise, we hope to do better next year, driven by current projects and also because construction material prices have dropped. This will improve the situation for us," Kok said.
For the year to May 2007, the company posted a net profit of RM7.5 million on the back of RM172 million revenue.
Gadang expects to benefit from projects under the Ninth Malaysia Plan that the government will call for next year.
By The New Strait Times
November 27, 2008
IOI aborts bid for Menara Citibank, loses deposit
IOI Corp Bhd forfeited its deposit of RM73.36mil after it aborted plans to acquire Menara Citibank for RM586.73mil.
In a statement to Bursa Malaysia yesterday, IOI Corp said the share sale and purchase agreement dated Aug 29 for the proposed acquisition became unconditional on Oct 31.
The due date for payment of the balance purchase price was Nov 11.
“However, due to the recent sudden adverse developments in the global economic environment which have spread to this region and impacted negatively on business sentiments, IOI Corp decided not to proceed with the proposed acquisition,” it said.
IOI Corp said it had received a letter from the vendors’ solicitors dated Nov 26 that they were terminating the agreement and had forfeited RM73.36mil paid earlier by IOI Corp.
The plantation group said it was seeking legal advice on the quantum of the forfeiture.
IOI Corp had proposed to acquire the entire stake in Inverfin Sdn Bhd, which owns Menara Citibank, from Menara Citi Holding Co Sdn Bhd, CapitaLand Ltd and Amsteel Corp Bhd.
IOI Corp had early announced that its earnings fell 36% to RM290.5mil due to an unrealised translation loss on its dollar-denominated borrowings of RM212.2mil. It also included a foreign exchange loss of RM100.6mil in the July-September quarter.
Meanwhile, in a statement to the Singapore Stock Exchange, CapitaLand said it would recognise a gain of S$9.3mil after IOI Corp forfeited the deposit on its failure to pay the balance on the completion date for the transaction.
By The Star
In a statement to Bursa Malaysia yesterday, IOI Corp said the share sale and purchase agreement dated Aug 29 for the proposed acquisition became unconditional on Oct 31.
The due date for payment of the balance purchase price was Nov 11.
“However, due to the recent sudden adverse developments in the global economic environment which have spread to this region and impacted negatively on business sentiments, IOI Corp decided not to proceed with the proposed acquisition,” it said.
IOI Corp said it had received a letter from the vendors’ solicitors dated Nov 26 that they were terminating the agreement and had forfeited RM73.36mil paid earlier by IOI Corp.
The plantation group said it was seeking legal advice on the quantum of the forfeiture.
IOI Corp had proposed to acquire the entire stake in Inverfin Sdn Bhd, which owns Menara Citibank, from Menara Citi Holding Co Sdn Bhd, CapitaLand Ltd and Amsteel Corp Bhd.
IOI Corp had early announced that its earnings fell 36% to RM290.5mil due to an unrealised translation loss on its dollar-denominated borrowings of RM212.2mil. It also included a foreign exchange loss of RM100.6mil in the July-September quarter.
Meanwhile, in a statement to the Singapore Stock Exchange, CapitaLand said it would recognise a gain of S$9.3mil after IOI Corp forfeited the deposit on its failure to pay the balance on the completion date for the transaction.
By The Star
November 26, 2008
Magna City project to be downsized
Magna Prima Bhd has downsized its Magna City project in Kuala Lumpur to RM600mil from RM1.1bil in gross development value (GDV) due to slowing growth, according to chief executive officer Lim Ching Choy.
“In view of the slowing economy, we reposition our development to suit the market demands,” Lim told StarBiz. “We (downsized) the development because we anticipated that the retail mall business would be tough going forward.”
Lim said the decision would also “lighten up” the company’s cash position, adding that the project’s profit margin could be maintained at 25% to 30% of sales value.
“Magna Prima is able to retain a healthy profit margin because we may not keep any of the assets in the amended RM600mil (project),” he said, revealing that the company had planned to retain 45% to 55% of the original project.
As of end of October, the group had RM230mil in unbilled sales.
The Magna City will have over 1.6mil square feet of net floor area while the construction is targeted to commence in the middle of 2009.
It sits on 10.23 acres of freehold land comprising 67 units of lifestyle shop offices, two levels of retail lots, two levels of corporate offices and 800 units of service apartments.
By The Star
“In view of the slowing economy, we reposition our development to suit the market demands,” Lim told StarBiz. “We (downsized) the development because we anticipated that the retail mall business would be tough going forward.”
Lim said the decision would also “lighten up” the company’s cash position, adding that the project’s profit margin could be maintained at 25% to 30% of sales value.
“Magna Prima is able to retain a healthy profit margin because we may not keep any of the assets in the amended RM600mil (project),” he said, revealing that the company had planned to retain 45% to 55% of the original project.
As of end of October, the group had RM230mil in unbilled sales.
The Magna City will have over 1.6mil square feet of net floor area while the construction is targeted to commence in the middle of 2009.
It sits on 10.23 acres of freehold land comprising 67 units of lifestyle shop offices, two levels of retail lots, two levels of corporate offices and 800 units of service apartments.
By The Star
November 25, 2008
Silver lining for developers
Launch-ready projects and high unbilled sales can help firms turn in commendable results
DEVELOPERS with a good line-up of pre-constructed projects for launch and high unbilled sales can look forward to commendable year-on-year financial results in the upcoming reporting season.
While most industry players have experienced an erosion in profit margin as a result of higher construction costs that started a year ago, companies that have projects in advanced stages of construction and recorded good take-up for their products will hold out well, performance-wise.
According to analysts’ estimates, Mah Sing Group Bhd is expected to turn in a higher net profit of RM98.7mil for its current financial year ending Dec 31 (FY08), from RM81.1mil in FY07, while revenue is set to rise to RM680.5mil from RM573.4mil.
In the first half of 2008, Mah Sing recorded sales of about RM263mil.
Mah Sing is one of the favourite picks for its sound balance sheet, strong branding and project execution capabilities.
Based on the company’s quick turnaround model, projects are usually launched six to nine months after land acquisition, although there could be some delay in the coming months following the softer market sentiment.
The company’s cash surplus of RM143mil as at Sept 30 will stand it in good stead to look for opportunistic acquisitions to expand its market presence.
In a research note, CIMB Research said Mah Sing was eyeing more land in Malaysia and hoped to wrap up several acquisitions over the next few months.
It is also scouting around for landbank in Vietnam, as the asking price for land should now be more realistic in view of the difficult market conditions there.
“Mah Sing is well-positioned to embark on more land acquisitions with its cash in hand, which should increase to RM213mil by mid-2009.
“It also has the capacity to borrow up to RM250mil should it choose to increase its net debt-to-equity ratio to a comfortable 0.5 time from 0.1 time in September,” the research house said.
Another developer with an identical financial year, United Malayan Land Bhd (UM Land), can expect some improvement for its third-quarter results following two quarters of losses.
The company recorded a loss of RM1.5mil for the first quarter ended March 31 and a further RM4mil loss in the following quarter.
However, on a year-on-year basis, UM Land’s results for FY08 are expected to be significantly short of last year’s.
In FY07, UM Land turned in a profit after-tax and minority interest of RM46mil on revenue of close to RM400mil.
The good response to its Suasana Sentral Loft condominiums in KL Sentral worth a gross development value (GDV) of more than RM300mil contributed to bottom line in FY06 and FY07.
Going forward, its latest project Suasana Bangsar, which was launched in July, will contribute to sales and earnings.
The project, with GDV of RM190mil, will take two to three years to complete.
Other projects in the pipeline will be a joint venture with MMC Corp Bhd to develop serviced residences in Persiaran Raja Chulan next year and a joint venture with Bolton Bhd to build high-end condominiums in Jalan Mayang, Kuala Lumpur, by 2010.
Meanwhile, companies which derive their income from investment property are in a better position to weather the current challenging market conditions as their rental income has been locked in.
Being the largest owner of superprime commercial properties in Kuala Lumpur City Centre (KLCC), the performance of KLCC Property Holdings Bhd is not expected to be much impacted by the market slowdown.
Hwang-DBS Vickers Research said the company had the most defensive earnings in the sector through locked-in rental income from blue-chip tenants on long-term leases.
It said KLCC Property’s earnings should continue to grow at a stable three-year cumulative average growth rate of 9%.
By The Star
DEVELOPERS with a good line-up of pre-constructed projects for launch and high unbilled sales can look forward to commendable year-on-year financial results in the upcoming reporting season.
While most industry players have experienced an erosion in profit margin as a result of higher construction costs that started a year ago, companies that have projects in advanced stages of construction and recorded good take-up for their products will hold out well, performance-wise.
According to analysts’ estimates, Mah Sing Group Bhd is expected to turn in a higher net profit of RM98.7mil for its current financial year ending Dec 31 (FY08), from RM81.1mil in FY07, while revenue is set to rise to RM680.5mil from RM573.4mil.
In the first half of 2008, Mah Sing recorded sales of about RM263mil.
Mah Sing is one of the favourite picks for its sound balance sheet, strong branding and project execution capabilities.
Based on the company’s quick turnaround model, projects are usually launched six to nine months after land acquisition, although there could be some delay in the coming months following the softer market sentiment.
The company’s cash surplus of RM143mil as at Sept 30 will stand it in good stead to look for opportunistic acquisitions to expand its market presence.
In a research note, CIMB Research said Mah Sing was eyeing more land in Malaysia and hoped to wrap up several acquisitions over the next few months.
It is also scouting around for landbank in Vietnam, as the asking price for land should now be more realistic in view of the difficult market conditions there.
“Mah Sing is well-positioned to embark on more land acquisitions with its cash in hand, which should increase to RM213mil by mid-2009.
“It also has the capacity to borrow up to RM250mil should it choose to increase its net debt-to-equity ratio to a comfortable 0.5 time from 0.1 time in September,” the research house said.
Another developer with an identical financial year, United Malayan Land Bhd (UM Land), can expect some improvement for its third-quarter results following two quarters of losses.
The company recorded a loss of RM1.5mil for the first quarter ended March 31 and a further RM4mil loss in the following quarter.
However, on a year-on-year basis, UM Land’s results for FY08 are expected to be significantly short of last year’s.
In FY07, UM Land turned in a profit after-tax and minority interest of RM46mil on revenue of close to RM400mil.
The good response to its Suasana Sentral Loft condominiums in KL Sentral worth a gross development value (GDV) of more than RM300mil contributed to bottom line in FY06 and FY07.
Going forward, its latest project Suasana Bangsar, which was launched in July, will contribute to sales and earnings.
The project, with GDV of RM190mil, will take two to three years to complete.
Other projects in the pipeline will be a joint venture with MMC Corp Bhd to develop serviced residences in Persiaran Raja Chulan next year and a joint venture with Bolton Bhd to build high-end condominiums in Jalan Mayang, Kuala Lumpur, by 2010.
Meanwhile, companies which derive their income from investment property are in a better position to weather the current challenging market conditions as their rental income has been locked in.
Being the largest owner of superprime commercial properties in Kuala Lumpur City Centre (KLCC), the performance of KLCC Property Holdings Bhd is not expected to be much impacted by the market slowdown.
Hwang-DBS Vickers Research said the company had the most defensive earnings in the sector through locked-in rental income from blue-chip tenants on long-term leases.
It said KLCC Property’s earnings should continue to grow at a stable three-year cumulative average growth rate of 9%.
By The Star
November 23, 2008
Ireka to build on i-Zen brand in Vietnam
IREKA Corp Bhd plans to aggressively grow the i-Zen brand for its overseas property development, especially in Vietnam, says executive director Lai Voon Hon.
“The Vietnamese market offers vast opportunities for the i-Zen brand, as the country has a young and educated population, strong foreign direct investment and a proactive government that promotes changes and liberalisation,” he told StarBiz.
He added that that the group was targeting the upper middle income segment in Vietnam.
i-Zen is an embodiment of quality products, contemporary lifestyle, high security, continued relationship with buyers, after-sales services and property management services.
Ireka’s property development in Vietnam is via its associate Aseana Properties Ltd. Currently, Aseana has seven projects in Malaysia and three in Vietnam.
Aseana’s joint ventures in Vietnam have an estimated gross development value of US$1.9bil. Its upcoming projects include Queen’s Place and Hi-Tech Healthcare Park, both in Ho Chi Minh City.
Queen’s Place sits on two acres and is a US$200mil joint-venture project in which Aseana owns 65%. It comprises residential units, offices and a retail mall.
Hi-Tech Healthcare Park is a US$420mil mixed commercial and residential development on 93 acres. It is 51%-owned by Aseana.
Lai said Mont’ Kiara had provided Ireka with the “branding showcase” and expertise to promote i-Zen outside Malaysia.
“The i-Zen brand has helped Ireka differentiate itself from others. This will not only benefit us during property launches but also allow buyers to command a premium resale value.
By The Star
“The Vietnamese market offers vast opportunities for the i-Zen brand, as the country has a young and educated population, strong foreign direct investment and a proactive government that promotes changes and liberalisation,” he told StarBiz.
He added that that the group was targeting the upper middle income segment in Vietnam.
i-Zen is an embodiment of quality products, contemporary lifestyle, high security, continued relationship with buyers, after-sales services and property management services.
Ireka’s property development in Vietnam is via its associate Aseana Properties Ltd. Currently, Aseana has seven projects in Malaysia and three in Vietnam.
Aseana’s joint ventures in Vietnam have an estimated gross development value of US$1.9bil. Its upcoming projects include Queen’s Place and Hi-Tech Healthcare Park, both in Ho Chi Minh City.
Queen’s Place sits on two acres and is a US$200mil joint-venture project in which Aseana owns 65%. It comprises residential units, offices and a retail mall.
Hi-Tech Healthcare Park is a US$420mil mixed commercial and residential development on 93 acres. It is 51%-owned by Aseana.
Lai said Mont’ Kiara had provided Ireka with the “branding showcase” and expertise to promote i-Zen outside Malaysia.
“The i-Zen brand has helped Ireka differentiate itself from others. This will not only benefit us during property launches but also allow buyers to command a premium resale value.
By The Star
Changing the face of PJ
A NEW generation of office buildings have mushroomed in several parts of Petaling Jaya over the past few years in tandem with growing demand for better office space outside the city centre.
However, as the economy faces tough challenges in view of the current global financial crisis, the local property market has also experienced a general slowdown. The consensus among property developers is that times would be “bad” next year, although few would admit it openly.
Some developers who joined the office market craze in Petaling Jaya in the past few years may be lucky as they have managed to complete their projects and sold or tenanted out most of their office and retail spaces.
These are the new generation strata office developments where some of them have retail components. They are mainly found along the Federal Highway (mostly purpose-built integrated offices like PJ City, PJ8) and in Section 13, 14 and 19 like Jaya 33, Jaya One, The Quill 9 and 3 Two Square.
Affluent townships like Bandar Utama and Taman Tun Dr Ismail (TTDI) are also seeing several new office projects (Menara Surian next to Ikano Power Centre and three in Bandar Utama City Centre viz Plaza IBM, KPMG Tower and 1, First Avenue. With Bandar Utama being awarded the MSC Cybercentre status in October, it would enhance the value of properties there).
Ken Group is also planning to build an office block in TTDI.
Coming up in the Kampung Kayu Area is 10 Boulevard and nearby, just after the Damansara toll plaza is the new Merchant Square.
There are many more being planned or under construction.
Those that have just been launched or just completed may face an uncertain future. This may be partly due to a softening market that is expected to get worse next year.
Although oil prices have dipped recently, there are still fears that it might jump next year, causing another round of fears and uncertainty. The global financial “tsunami” may hit our shores hard next year.
Meanwhile, a rough poll shows that generally the office market in Petaling Jaya, especially for the new developments, are holding up fairly well.
Businesses today want to be seen as progressive and not holed up in some old shop houses. They do not mind paying a premium to own or rent offices that are well located and have lots of amenities.
S K Brothers Realty Sdn Bhd general manager Chan Ai Cheng points out that employees are also choosy in not only who they are working for, but also where they work, as in location.
“An interesting thing while marketing 3 Two Square is that we noticed that businesses were moving out of the older shop offices and shop houses to new developments as their former image had made it difficult for them to hire staff, much less retain them. Young graduates today are looking at working in fine offices, and places with a nice address plus extra perks. It reflects the changing times,” she says, adding that many companies who had their roots in Petaling Jaya were also reluctant to relocate elsewhere.
SK Brothers, she says, is one such company that had bought office space in 3 Two Square which is very near its former office in Paramount Garden that it had been operating since 1979.
“When we bought our office space in 3 Two Square, prices were around RM260 psf to RM280 psf but it has since gone up. We transacted a unit at 3 Two Square early this year for RM315 psf. Recently, we transacted another office space just above our unit at RM380 psf. Office rental rates there are in the region of RM2.30 to RM2.70 psf,” says the daughter of SK Brothers founder Charlie Chan.
Chan says she has a friend who bought a unit at 3 Two Square a few months before completion and managed to almost immediately rent out her unit to a pharmaceutical company; for a year now, she has been enjoying rental returns of close to 10% per annum.
Chan says her company’s decision to buy a unit in 3 Two Square was based on factors such as accessibility, matured neighbourhood, track record of the developer, ample car park bays and unique features including its wide frontage lots with a minimum of 28ft for high advertising exposures.
She said Quill 9 at Jalan Semangat which is due for completion soon has BMW as its ground floor tenant. Developed by the Quill Group, it has big floor plates of 20,000 sq ft to 50,000 sq ft with rentals from RM4.30 psf.
“All these new developments are a welcoming change for residents of Petaling Jaya. I have lived in PJ all my life and in the early days there was only Jaya Supermarket and the Right Angle in Section 14,” she adds.
“Today with Jaya One, Jaya 33 and others, residents have more choices in terms of dining and shopping, As more companies relocate their offices here, it has also enabled PJ residents to find jobs nearer their homes. PJ people can now work in PJ and this has helped to reduce traffic jams and improve people’s life,” she adds.
Instead of developing traditional type shop houses, developers have differentiated themselves with new products and concepts.
For example, Jaya 33 has a hyper office concept, VSQ (pronounced as V Square) has corporate offices with serviced apartments, 3 Two Square is marketed as hybrid shop offices while Jaya One in Section 13 (along Jalan Universiti) has a mix of stand alone office block, and restaurants designed in courtyard styles.
The new projects along the Federal Highway include the newly completed PJ8, PJ City and fairly new Menara LYL.
A 6-storey office block with two basement car parks is under construction two lots from Menara LYL. These, along with Menara Axis, Crystal Plaza and the row of motor showrooms (Mercedes-Benz, Chevrolet, Mazda, Ssyangyong, VW, Naza World, Subaru and Ford on the opposite of the highway) are transforming this part of Petaling Jaya into a vibrant office cum retail hub.
However, as the economy faces tough challenges in view of the current global financial crisis, the local property market has also experienced a general slowdown. The consensus among property developers is that times would be “bad” next year, although few would admit it openly.
Some developers who joined the office market craze in Petaling Jaya in the past few years may be lucky as they have managed to complete their projects and sold or tenanted out most of their office and retail spaces.
These are the new generation strata office developments where some of them have retail components. They are mainly found along the Federal Highway (mostly purpose-built integrated offices like PJ City, PJ8) and in Section 13, 14 and 19 like Jaya 33, Jaya One, The Quill 9 and 3 Two Square.
Affluent townships like Bandar Utama and Taman Tun Dr Ismail (TTDI) are also seeing several new office projects (Menara Surian next to Ikano Power Centre and three in Bandar Utama City Centre viz Plaza IBM, KPMG Tower and 1, First Avenue. With Bandar Utama being awarded the MSC Cybercentre status in October, it would enhance the value of properties there).
Ken Group is also planning to build an office block in TTDI.
Coming up in the Kampung Kayu Area is 10 Boulevard and nearby, just after the Damansara toll plaza is the new Merchant Square.
There are many more being planned or under construction.
Those that have just been launched or just completed may face an uncertain future. This may be partly due to a softening market that is expected to get worse next year.
Although oil prices have dipped recently, there are still fears that it might jump next year, causing another round of fears and uncertainty. The global financial “tsunami” may hit our shores hard next year.
Meanwhile, a rough poll shows that generally the office market in Petaling Jaya, especially for the new developments, are holding up fairly well.
Businesses today want to be seen as progressive and not holed up in some old shop houses. They do not mind paying a premium to own or rent offices that are well located and have lots of amenities.
S K Brothers Realty Sdn Bhd general manager Chan Ai Cheng points out that employees are also choosy in not only who they are working for, but also where they work, as in location.
“An interesting thing while marketing 3 Two Square is that we noticed that businesses were moving out of the older shop offices and shop houses to new developments as their former image had made it difficult for them to hire staff, much less retain them. Young graduates today are looking at working in fine offices, and places with a nice address plus extra perks. It reflects the changing times,” she says, adding that many companies who had their roots in Petaling Jaya were also reluctant to relocate elsewhere.
SK Brothers, she says, is one such company that had bought office space in 3 Two Square which is very near its former office in Paramount Garden that it had been operating since 1979.
“When we bought our office space in 3 Two Square, prices were around RM260 psf to RM280 psf but it has since gone up. We transacted a unit at 3 Two Square early this year for RM315 psf. Recently, we transacted another office space just above our unit at RM380 psf. Office rental rates there are in the region of RM2.30 to RM2.70 psf,” says the daughter of SK Brothers founder Charlie Chan.
Chan says she has a friend who bought a unit at 3 Two Square a few months before completion and managed to almost immediately rent out her unit to a pharmaceutical company; for a year now, she has been enjoying rental returns of close to 10% per annum.
Chan says her company’s decision to buy a unit in 3 Two Square was based on factors such as accessibility, matured neighbourhood, track record of the developer, ample car park bays and unique features including its wide frontage lots with a minimum of 28ft for high advertising exposures.
She said Quill 9 at Jalan Semangat which is due for completion soon has BMW as its ground floor tenant. Developed by the Quill Group, it has big floor plates of 20,000 sq ft to 50,000 sq ft with rentals from RM4.30 psf.
“All these new developments are a welcoming change for residents of Petaling Jaya. I have lived in PJ all my life and in the early days there was only Jaya Supermarket and the Right Angle in Section 14,” she adds.
“Today with Jaya One, Jaya 33 and others, residents have more choices in terms of dining and shopping, As more companies relocate their offices here, it has also enabled PJ residents to find jobs nearer their homes. PJ people can now work in PJ and this has helped to reduce traffic jams and improve people’s life,” she adds.
Instead of developing traditional type shop houses, developers have differentiated themselves with new products and concepts.
For example, Jaya 33 has a hyper office concept, VSQ (pronounced as V Square) has corporate offices with serviced apartments, 3 Two Square is marketed as hybrid shop offices while Jaya One in Section 13 (along Jalan Universiti) has a mix of stand alone office block, and restaurants designed in courtyard styles.
The new projects along the Federal Highway include the newly completed PJ8, PJ City and fairly new Menara LYL.
A 6-storey office block with two basement car parks is under construction two lots from Menara LYL. These, along with Menara Axis, Crystal Plaza and the row of motor showrooms (Mercedes-Benz, Chevrolet, Mazda, Ssyangyong, VW, Naza World, Subaru and Ford on the opposite of the highway) are transforming this part of Petaling Jaya into a vibrant office cum retail hub.
November 20, 2008
TA Enterprise aims to list property arm in Q1
TA Enterprise Bhd expects to list its property arm TA Global Bhd on the main board in the first quarter of next year following the Securities Commission’s approval recently.
Managing director and chief executive officer Datin Alicia Tiah said the group was arranging with the underwriters on the portion of shares to be allocated to bumiputras.
“Initial public offerings (IPOs) in recent times were not fully subscribed.
“I think we would need to see how we are going to allocate the bumiputra portion following the Government’s relaxation of the rules,” she said.
The Government recently announced that it was relaxing the minimum 30% bumiputra equity requirement for public-listed firms. TA Enterprise had earlier targeted to list TA Global by next month.
TA Global’s listing exercise involves a proposed rights issue of 860 million new shares and a public issue of 350 million new shares at 50 sen per share.
TA Enterprise had earlier proposed to sell 875 million TA Global shares to bumiputra investors. It also proposed a capital distribution to shareholders via a share capital reduction from RM1 per share to 50 sen.
The proceeds from the proposals would total RM437.5mil. TA Enterprise is expected to recognise a capital gain of RM924.9mil.
Although the group is cash-rich, Tiah said, it would still want to raise more funds through an IPO because it needed more cash to buy assets at this time as the prices of properties were easing.
As of July 31, the group’s net cash and cash equivalents totalled RM451mil.
“We would still need more cash if we were to buy assets overseas.
“For investments in Australia, the weakening Australian dollar vis-a-vis the ringgit would enable TA Global to buy more properties there,” she said.
It currently owns Radisson Plaza Hotel in Sydney that had an average occupancy rate of 82% in July and a market value of A$120mil.
“Everything is at a discount now and I would say there’s about 25% discount from currency gains due to the strengthening of the ringgit (against the Australian dollar),” she said.
Furthermore, Tiah said, it was a good time to buy properties now because many prime properties held by hedge funds are available following a massive redemption by hedge funds.
“That is why this IPO is very important to us. If we are successful in raising the money, this would create an opportunity for the group to buy good assets with highly discounted prices,” she said.
Meanwhile, deputy chief executive officer Tiah Joo Kim told StarBiz that TA Global would launch an international brand for the newly acquired RM107mil Coast Whistler hotel by the first half of next year.
He said the group would develop hotels that carried its own brand, complete with different concepts and themes.
“We want to study the market segments and create different themes and concepts to suit the different market segments,” he said, adding that the acquisition of Coast Whistler would be completed by next month.
Joo Kim said TA Global would also develop a mixed development project worth some RM1.27bil on 3.3 acres at the corner of Jalan Imbi and Jalan Bukit Bintang, Kuala Lumpur.
By The Star
Managing director and chief executive officer Datin Alicia Tiah said the group was arranging with the underwriters on the portion of shares to be allocated to bumiputras.
“Initial public offerings (IPOs) in recent times were not fully subscribed.
“I think we would need to see how we are going to allocate the bumiputra portion following the Government’s relaxation of the rules,” she said.
The Government recently announced that it was relaxing the minimum 30% bumiputra equity requirement for public-listed firms. TA Enterprise had earlier targeted to list TA Global by next month.
TA Global’s listing exercise involves a proposed rights issue of 860 million new shares and a public issue of 350 million new shares at 50 sen per share.
TA Enterprise had earlier proposed to sell 875 million TA Global shares to bumiputra investors. It also proposed a capital distribution to shareholders via a share capital reduction from RM1 per share to 50 sen.
The proceeds from the proposals would total RM437.5mil. TA Enterprise is expected to recognise a capital gain of RM924.9mil.
Although the group is cash-rich, Tiah said, it would still want to raise more funds through an IPO because it needed more cash to buy assets at this time as the prices of properties were easing.
As of July 31, the group’s net cash and cash equivalents totalled RM451mil.
“We would still need more cash if we were to buy assets overseas.
“For investments in Australia, the weakening Australian dollar vis-a-vis the ringgit would enable TA Global to buy more properties there,” she said.
It currently owns Radisson Plaza Hotel in Sydney that had an average occupancy rate of 82% in July and a market value of A$120mil.
“Everything is at a discount now and I would say there’s about 25% discount from currency gains due to the strengthening of the ringgit (against the Australian dollar),” she said.
Furthermore, Tiah said, it was a good time to buy properties now because many prime properties held by hedge funds are available following a massive redemption by hedge funds.
“That is why this IPO is very important to us. If we are successful in raising the money, this would create an opportunity for the group to buy good assets with highly discounted prices,” she said.
Meanwhile, deputy chief executive officer Tiah Joo Kim told StarBiz that TA Global would launch an international brand for the newly acquired RM107mil Coast Whistler hotel by the first half of next year.
He said the group would develop hotels that carried its own brand, complete with different concepts and themes.
“We want to study the market segments and create different themes and concepts to suit the different market segments,” he said, adding that the acquisition of Coast Whistler would be completed by next month.
Joo Kim said TA Global would also develop a mixed development project worth some RM1.27bil on 3.3 acres at the corner of Jalan Imbi and Jalan Bukit Bintang, Kuala Lumpur.
By The Star
November 19, 2008
Hektar REIT sees steady rentals next year
Income to be driven by high occupancy rates of retail properties
Hektar Real Estate Investment Trust (Hektar REIT) is expecting stable rental incomes next year due to the high occupancy rate of its retail properties as well as a positive trend in its rentals.
The REIT also sees less impact from the economic slowdown as its portfolio consists of the more resilient neigbourhood shopping malls.
Hektar Asset Management Sdn Bhd, the manager of Hektar REIT, said as of the third quarter of this year, the occupancy rate of its retail properties was a solid 96.8%.
“With the majority of our income secured by multi-year leases (three to four years), we will have stable income in 2009,” Hektar Asset executive director and chief financial officer Zalila Mohd Toon told StarBiz.
Zalila said Hektar REIT, which currently owns a property portfolio valued at around RM700mil, remained positive on rental rates.
As at end September, rental rates for 30 new or renewed tenancies in its portfolio had increased by an average of 6%.
Hektar REIT’s retail properties are mainly suburban and neighbourhood malls, which are smaller than regional or city malls.
Its portfolio consists of Subang Parade in Subang, Mahkota Parade in Malacca and Wetex Parade in Muar, Johor.
Hektar REIT now owns more than one million sq ft of space and has over 300 retailers in its portfolio.
The size of neighbourhood malls averages around 500,000 sq ft, or about half the size of so-called regional malls like Suria KLCC.
Zalila said a neighbourhood mall, like Subang Parade, was focused in two ways.
Firstly, it was geared toward serving the surrounding communities living within 15 minutes’ driving distance.
Secondly, the tenant mix was concentrated on basic goods and necessities, and other lifestyle elements, but not luxury items.
“Therefore, we think neighbourhood malls have a more resilient business model than the larger regional malls in difficult times (recession),” Zalila said.
Hektar REIT has also kept track of their retailers’ performance.
“More than 90% of our retailers in Subang and Mahkota Parade so far reported that their sales figures remained intact,” Zalila said.
On the flip side, she said when the economy was booming, the regional malls could do better as they could charge higher rental rates.
“The challenging financial market and stock market, in general, has not affected the operating environment for Hektar REIT’s retail assets at this time,” she said.
Going forward, Zalila said Hektar REIT would continue to focus on completed or nearly completed retail assets, and it would grow its asset base via acquisitions.
According to the Malaysian Valuation and Property Services Department, there is close to 90 million sq ft of shopping centre net lettable area, or space for rent, in Malaysia.
“That means we have a market share of just over 1%,” Zalila said. “We see big opportunities for growth and development, particularly outside of the Klang Valley as almost a quarter of Malaysia’s shopping centre space is in Kuala Lumpur.”
On the impact of the global credit crunch, Zalila said in terms of securing financing in Malaysia, the REIT had long-term relationships with major financiers.
For the financial year ended Sept 30, Hektar REIT generated a total revenue of RM61.98mil, of which RM61.83mil was from rentals.
It also declared a dividend of 2.4 sen per unit.
By The Star
Hektar Real Estate Investment Trust (Hektar REIT) is expecting stable rental incomes next year due to the high occupancy rate of its retail properties as well as a positive trend in its rentals.
The REIT also sees less impact from the economic slowdown as its portfolio consists of the more resilient neigbourhood shopping malls.
Hektar Asset Management Sdn Bhd, the manager of Hektar REIT, said as of the third quarter of this year, the occupancy rate of its retail properties was a solid 96.8%.
“With the majority of our income secured by multi-year leases (three to four years), we will have stable income in 2009,” Hektar Asset executive director and chief financial officer Zalila Mohd Toon told StarBiz.
Zalila said Hektar REIT, which currently owns a property portfolio valued at around RM700mil, remained positive on rental rates.
As at end September, rental rates for 30 new or renewed tenancies in its portfolio had increased by an average of 6%.
Hektar REIT’s retail properties are mainly suburban and neighbourhood malls, which are smaller than regional or city malls.
Its portfolio consists of Subang Parade in Subang, Mahkota Parade in Malacca and Wetex Parade in Muar, Johor.
Hektar REIT now owns more than one million sq ft of space and has over 300 retailers in its portfolio.
The size of neighbourhood malls averages around 500,000 sq ft, or about half the size of so-called regional malls like Suria KLCC.
Zalila said a neighbourhood mall, like Subang Parade, was focused in two ways.
Firstly, it was geared toward serving the surrounding communities living within 15 minutes’ driving distance.
Secondly, the tenant mix was concentrated on basic goods and necessities, and other lifestyle elements, but not luxury items.
“Therefore, we think neighbourhood malls have a more resilient business model than the larger regional malls in difficult times (recession),” Zalila said.
Hektar REIT has also kept track of their retailers’ performance.
“More than 90% of our retailers in Subang and Mahkota Parade so far reported that their sales figures remained intact,” Zalila said.
On the flip side, she said when the economy was booming, the regional malls could do better as they could charge higher rental rates.
“The challenging financial market and stock market, in general, has not affected the operating environment for Hektar REIT’s retail assets at this time,” she said.
Going forward, Zalila said Hektar REIT would continue to focus on completed or nearly completed retail assets, and it would grow its asset base via acquisitions.
According to the Malaysian Valuation and Property Services Department, there is close to 90 million sq ft of shopping centre net lettable area, or space for rent, in Malaysia.
“That means we have a market share of just over 1%,” Zalila said. “We see big opportunities for growth and development, particularly outside of the Klang Valley as almost a quarter of Malaysia’s shopping centre space is in Kuala Lumpur.”
On the impact of the global credit crunch, Zalila said in terms of securing financing in Malaysia, the REIT had long-term relationships with major financiers.
For the financial year ended Sept 30, Hektar REIT generated a total revenue of RM61.98mil, of which RM61.83mil was from rentals.
It also declared a dividend of 2.4 sen per unit.
By The Star
Breakthrough in interior partitions
HPS Partition System by SGO understands many homes would be well served with a customised partition.
Purchasing an interior partition here is like engaging a personal interior consultant.
With over 14 years' experience in decorative architectural glass and exposure to many prominent, challenging homes and designers, SGO can help turn your home interior from ordinary to extraordinary.
''Working with SGO HPS system is like getting your very own signature. We combine art and design to build a partition system to your requirements,'' said business manager of HPS system Amanda Goh.
''You can mix and match, position cabinet storage and define shelf sizes your way. You can make future expansions to a current HPS partition or even relocate it with ease.''
You will get to view your ideas in print before the job commences.
Choose from designer art glass pieces of English Victorian design to serene natural scenes and playful abstract modern contemporary designs.
By The Star
Purchasing an interior partition here is like engaging a personal interior consultant.
With over 14 years' experience in decorative architectural glass and exposure to many prominent, challenging homes and designers, SGO can help turn your home interior from ordinary to extraordinary.
''Working with SGO HPS system is like getting your very own signature. We combine art and design to build a partition system to your requirements,'' said business manager of HPS system Amanda Goh.
''You can mix and match, position cabinet storage and define shelf sizes your way. You can make future expansions to a current HPS partition or even relocate it with ease.''
You will get to view your ideas in print before the job commences.
Choose from designer art glass pieces of English Victorian design to serene natural scenes and playful abstract modern contemporary designs.
By The Star
November 18, 2008
Property roadshow to attract Japanese investors
MALAYSIA Property Inc (MPI) will kick off its maiden international property roadshow in Tokyo on Dec 6 and 7 to attract Japanese institutional investors to Malaysia’s shores.
According to executive director Yu Kee Su, the two-day roadshow will project the advantages of Malaysia as a property destination.
”In Malaysia, foreigners can buy an unlimited number of property; register the property under their names; and there is no real property gains tax, inheritance and transfer tax. In Japan, these taxes are as high as 60%,” Yu pointed out.
He said with the Japanese yen now at its strongest, “Japanese investors buying properties overseas will get an immediate 20% discount, at the current exchange rate.”
“Japan’s strong yen and the Japanese government’s decision to allow its real estate investment trusts (REITs) to invest overseas will promote greater interest among its investors in Malaysia’s property.”
Yu expressed confidence that the road show would be well-received in spite of the current global economic uncertainties.
The Tokyo road show is the first of the Far East’s property promotions by MPI, a joint public and private sector initiative formed early this year to promote Malaysia’s property internationally, that will also cover Britain and the Middle East in the coming months.
“It is a challenge to the organizers to ensure the success of the Tokyo road show as there has yet to be any Japanese institutional investors in Malaysian properties,” Yu said.
Under Malaysia My Second Home (MM2H) programme, Malaysia is already a top choice among Japanese for long stays and retirement.
“There are already investors from the Middle East and South Korea buying our local property en bloc and off the plan but none yet from Japan. We hope the road show will change that,” Yu said.
MPI is organising the road show with Ohana International Co Ltd as the event manager. It has the support of the Japan Travel Bureau (JBT) and the Long Stay Foundation (LSF), both of which have brought in record numbers of Japanese retirees under MM2H.
Also partnering in the Japan road show entitled “Luxurious Malaysia, long-stay, property and financial fair” at the Mitsui Life Insurance Hall, Otemachi Tokyo, are HSBC Tokyo and Mitsui Life Insurance. Both will send direct mail and emails to their vast clientele of the upcoming road show.
Some 1,000 prospective clients are invited including institutional investors such as Ishin Hotel REIT Management, RETEC Co Ltd, Orix Property, Hotel Management International, ING Property Investment Advisory Co Ltd, Renessance Capital, Star Asset Management, Goldman Sachs Realty Japan, Toyo Securities Co., Ltd, and Shinko Securities Co, Ltd.
Yu said participating developers in the road show would be invited for roundtable discussions and meet Japanese REIT investors and fund managers at private meetings and at business matching sessions during their stay.
Keen Japanese investors can join Ohana’s “Discover Malaysian Property Tour” to visit and familiarize themselves with the local property market assisted by the participating Malaysian developers.
Ishihara Shotaro, a MPI board advisor, said cash-rich Japan was lagging behind the US and Britain in foreign investment.
“The time is right to promote Malaysia’s property in Japan as the stronger yen against other currencies would make living cost and property prices much cheaper,” he said.
By The Star
According to executive director Yu Kee Su, the two-day roadshow will project the advantages of Malaysia as a property destination.
”In Malaysia, foreigners can buy an unlimited number of property; register the property under their names; and there is no real property gains tax, inheritance and transfer tax. In Japan, these taxes are as high as 60%,” Yu pointed out.
He said with the Japanese yen now at its strongest, “Japanese investors buying properties overseas will get an immediate 20% discount, at the current exchange rate.”
“Japan’s strong yen and the Japanese government’s decision to allow its real estate investment trusts (REITs) to invest overseas will promote greater interest among its investors in Malaysia’s property.”
Yu expressed confidence that the road show would be well-received in spite of the current global economic uncertainties.
The Tokyo road show is the first of the Far East’s property promotions by MPI, a joint public and private sector initiative formed early this year to promote Malaysia’s property internationally, that will also cover Britain and the Middle East in the coming months.
“It is a challenge to the organizers to ensure the success of the Tokyo road show as there has yet to be any Japanese institutional investors in Malaysian properties,” Yu said.
Under Malaysia My Second Home (MM2H) programme, Malaysia is already a top choice among Japanese for long stays and retirement.
“There are already investors from the Middle East and South Korea buying our local property en bloc and off the plan but none yet from Japan. We hope the road show will change that,” Yu said.
MPI is organising the road show with Ohana International Co Ltd as the event manager. It has the support of the Japan Travel Bureau (JBT) and the Long Stay Foundation (LSF), both of which have brought in record numbers of Japanese retirees under MM2H.
Also partnering in the Japan road show entitled “Luxurious Malaysia, long-stay, property and financial fair” at the Mitsui Life Insurance Hall, Otemachi Tokyo, are HSBC Tokyo and Mitsui Life Insurance. Both will send direct mail and emails to their vast clientele of the upcoming road show.
Some 1,000 prospective clients are invited including institutional investors such as Ishin Hotel REIT Management, RETEC Co Ltd, Orix Property, Hotel Management International, ING Property Investment Advisory Co Ltd, Renessance Capital, Star Asset Management, Goldman Sachs Realty Japan, Toyo Securities Co., Ltd, and Shinko Securities Co, Ltd.
Yu said participating developers in the road show would be invited for roundtable discussions and meet Japanese REIT investors and fund managers at private meetings and at business matching sessions during their stay.
Keen Japanese investors can join Ohana’s “Discover Malaysian Property Tour” to visit and familiarize themselves with the local property market assisted by the participating Malaysian developers.
Ishihara Shotaro, a MPI board advisor, said cash-rich Japan was lagging behind the US and Britain in foreign investment.
“The time is right to promote Malaysia’s property in Japan as the stronger yen against other currencies would make living cost and property prices much cheaper,” he said.
By The Star
Seberang Prai offers lower construction cost
KNOWN as Seberang Prai or Province Wellesley, the 756sq km land mass, separated from the island by a 13.5km bridge, is the only area in Penang where landed properties are still attractively priced.
The cost to build a three-storey terraced property, taking into consideration land and construction cost, is between RM200,000 and RM230,000 while launch prices for such properties are usually from RM280,000 onwards, depending on the location of the project.
On the island, the combined land and construction cost to build a three-storey house of about 3,200sq ft on the is between RM700,000 and RM750,000, while launch prices start from between RM800,000 and RM900,000.
The combined land and construction cost to build a 1,000sq ft high-rise unit is over RM280,000, and the property is priced in the market at RM400,000 and above.
Developers are not only attracted to build homes in Seberang Perai due to its lower cost but also because of the new manufacturing activities that have located there thereby creating jobs and demand for affordable housing.
While a recession might be around the corner, developers are still planning to launch residential properties although they are more cautious.
The growth areas for property projects are in Juru, Bukit Mertajam, Alma, and Seberang Jaya in Central Seberang Prai, Simpang Ampat, Bukit Tambun, and Jawi in South Seberang Prai, and Jalan Raja Uda and Butterworth town in North Seberang Prai.
Several developers said the Central Seberang Prai was attractive to them due to the industrial estate located within the district. DNP Land Sdn Bhd, a subsidiary of DNP Holdings Bhd, is focused on developing its landbank in the area, which saw the fastest population growth on the mainland.
Tambun Indah managing director Teh Kiak Seng told Starbiz that the type of project a developer would launch in the area depended on location. “For example, in Juru, where it is close to the factories and to the Auto-City, we launched the Juru Heights, which has a gross sales value of RM250mil.
The Real Estate and Housing Developers’ Association Penang chapter chairman Datuk Jerry Chan said there would be a slowdown in the launching of new development schemes next year, due to the global recession.
He said banks would be stricter in providing financing to developers or home buyers.
By The Star
The cost to build a three-storey terraced property, taking into consideration land and construction cost, is between RM200,000 and RM230,000 while launch prices for such properties are usually from RM280,000 onwards, depending on the location of the project.
On the island, the combined land and construction cost to build a three-storey house of about 3,200sq ft on the is between RM700,000 and RM750,000, while launch prices start from between RM800,000 and RM900,000.
The combined land and construction cost to build a 1,000sq ft high-rise unit is over RM280,000, and the property is priced in the market at RM400,000 and above.
Developers are not only attracted to build homes in Seberang Perai due to its lower cost but also because of the new manufacturing activities that have located there thereby creating jobs and demand for affordable housing.
While a recession might be around the corner, developers are still planning to launch residential properties although they are more cautious.
The growth areas for property projects are in Juru, Bukit Mertajam, Alma, and Seberang Jaya in Central Seberang Prai, Simpang Ampat, Bukit Tambun, and Jawi in South Seberang Prai, and Jalan Raja Uda and Butterworth town in North Seberang Prai.
Several developers said the Central Seberang Prai was attractive to them due to the industrial estate located within the district. DNP Land Sdn Bhd, a subsidiary of DNP Holdings Bhd, is focused on developing its landbank in the area, which saw the fastest population growth on the mainland.
Tambun Indah managing director Teh Kiak Seng told Starbiz that the type of project a developer would launch in the area depended on location. “For example, in Juru, where it is close to the factories and to the Auto-City, we launched the Juru Heights, which has a gross sales value of RM250mil.
The Real Estate and Housing Developers’ Association Penang chapter chairman Datuk Jerry Chan said there would be a slowdown in the launching of new development schemes next year, due to the global recession.
He said banks would be stricter in providing financing to developers or home buyers.
By The Star
Danga Bay developer to launch RM350mil upgrading programme
Danga Bay Sdn Bhd (DBSB), which owns the waterfront land in the Iskandar Malaysia, will launch a RM350mil upgrading programme to introduce new attractions in Danga Bay.
DBSB chief executive officer Datuk Lim Kang Hoo said the programme, under phase one of the Danga Bay development masterplan, would start next year.
“The projects are scheduled to be fully operational by 2011. The programme will include building a marina club, Bay Leaf Convention & Exhibition Centre, multi-storey car park, budget hotel and office block,” he told a media briefing after an aerial tour of the area on Saturday.
Lim said the marina club, which would be extended by 500 metres with berths for 250 yachts, was expected to be ready by mid-2009
By The Star
DBSB chief executive officer Datuk Lim Kang Hoo said the programme, under phase one of the Danga Bay development masterplan, would start next year.
“The projects are scheduled to be fully operational by 2011. The programme will include building a marina club, Bay Leaf Convention & Exhibition Centre, multi-storey car park, budget hotel and office block,” he told a media briefing after an aerial tour of the area on Saturday.
Lim said the marina club, which would be extended by 500 metres with berths for 250 yachts, was expected to be ready by mid-2009
By The Star
November 9, 2008
Mideast confidence in Bukit Kiara Properties
The UAE-based Al Batha group, which invested RM42mil in a joint venture with Malaysia’s unlisted Bukit Kiara Properties group, highlights Middle-east companies’ interest in well-managed Malaysian companies.
However, the relationship between the diversified Al Batha group and Bukit Kiara group went beyond profits and it was built on common values, ethics and integrity.
Bukit Kiara Properties Sdn Bhd managing director Tong Nguen Khoong said three years ago, a representative of Al Batha group expressed interest in the properties built by the company.
This saw the Al Batha group, which is involved from automobiles, manufacturing, electronics and real estate, buying a few properties in Bukit Kiara’s Hijauan Kiara apartments.
This was followed by purchases in its first and second tower of the Verve Suites over the past 18 months.
“During this period, both companies got to know each other better,” he said, as both parties took cognisance of each other’s common values, ethics and integrity.
Tong said he remembered a conversation he had with Al Batha vice chairman Sheik Salem bin Mohammed Al Qassimi when Al Batha expressed interest in co-developing Bukit Kiara’s second tower of the Verve Suites.
He remarked to Sheik Salem that Al Batha would be better off as an investor in the project than as a co-developer because “our profit margins are very reasonable and we offer good value to our customers”.
He also recalled Sheikh Salem’s reply that making a reasonable profit but not exorbitant profit was good. This viewpoint was also consistent with Bukit Kiara group’s values.
“Later, this became the catalyst for discussion of investing into the Bukit Kiara group at the holding level,” he said.
Tong said with Al Batha group at the holding level was better instead of being co-investor on a project-by-project basis which would be too ad-hoc.
This led to the formation of the JV company - Al Batha Bukit Kiara Holdings Sdn Bhd (ABBK).
The JV, formalised in Dubai on Oct 20, would see Bukit Kiara group injecting properties with a gross development value of RM700mil.
The JV would provide Al Batha group a foothold into the global market where it intends to have its operations or JVs with overseas companies.
Tong said the paid-up capital of ABBK would be increased to RM105mil, following the injection of RM42mil for the 40% stake in ABBK.
Before Bukit Kiara group started discussions with the Al Batha group, an insurance company had earlier expressed interest to team up with the former.
“However, the insurance company’s focus was on returns in investments only, while we wanted to look at a longer-term partnership,” Tong added.
For the Bukit Kiara group, it has an opportunity to learn from the Al Batha group in the area of long-term growth as it is a huge conglomerate, he said.
“The future for the group is very bright and opens up the possibility of new growth areas to attract Middle-east investors. In the past, investors gave Malaysia a miss because of its small size,” he said.
Tong said once the critical mass was built up, Malaysians could expect to attract more foreign interest, especially from the Middle-east.
“We are looking at a 10 to 15 year horizon. The Middle-east market will create opportunities for Malaysians to venture out,” he added.
By The Star
However, the relationship between the diversified Al Batha group and Bukit Kiara group went beyond profits and it was built on common values, ethics and integrity.
Bukit Kiara Properties Sdn Bhd managing director Tong Nguen Khoong said three years ago, a representative of Al Batha group expressed interest in the properties built by the company.
This saw the Al Batha group, which is involved from automobiles, manufacturing, electronics and real estate, buying a few properties in Bukit Kiara’s Hijauan Kiara apartments.
This was followed by purchases in its first and second tower of the Verve Suites over the past 18 months.
“During this period, both companies got to know each other better,” he said, as both parties took cognisance of each other’s common values, ethics and integrity.
Tong said he remembered a conversation he had with Al Batha vice chairman Sheik Salem bin Mohammed Al Qassimi when Al Batha expressed interest in co-developing Bukit Kiara’s second tower of the Verve Suites.
He remarked to Sheik Salem that Al Batha would be better off as an investor in the project than as a co-developer because “our profit margins are very reasonable and we offer good value to our customers”.
He also recalled Sheikh Salem’s reply that making a reasonable profit but not exorbitant profit was good. This viewpoint was also consistent with Bukit Kiara group’s values.
“Later, this became the catalyst for discussion of investing into the Bukit Kiara group at the holding level,” he said.
Tong said with Al Batha group at the holding level was better instead of being co-investor on a project-by-project basis which would be too ad-hoc.
This led to the formation of the JV company - Al Batha Bukit Kiara Holdings Sdn Bhd (ABBK).
The JV, formalised in Dubai on Oct 20, would see Bukit Kiara group injecting properties with a gross development value of RM700mil.
The JV would provide Al Batha group a foothold into the global market where it intends to have its operations or JVs with overseas companies.
Tong said the paid-up capital of ABBK would be increased to RM105mil, following the injection of RM42mil for the 40% stake in ABBK.
Before Bukit Kiara group started discussions with the Al Batha group, an insurance company had earlier expressed interest to team up with the former.
“However, the insurance company’s focus was on returns in investments only, while we wanted to look at a longer-term partnership,” Tong added.
For the Bukit Kiara group, it has an opportunity to learn from the Al Batha group in the area of long-term growth as it is a huge conglomerate, he said.
“The future for the group is very bright and opens up the possibility of new growth areas to attract Middle-east investors. In the past, investors gave Malaysia a miss because of its small size,” he said.
Tong said once the critical mass was built up, Malaysians could expect to attract more foreign interest, especially from the Middle-east.
“We are looking at a 10 to 15 year horizon. The Middle-east market will create opportunities for Malaysians to venture out,” he added.
By The Star
IJM Land banks on niche projects
WITH a number of lifestyle residential projects in its stable, IJM Land Bhd can look forward to riding out the current soft property market by focusing on its niche projects in Kuala Lumpur, Penang and Johor Baru.
For the financial year ending March 31, 2009 (FY09), the company expects to maintain sales at around RM800mil to RM900mil, especially from new project launches in Penang and Johor Baru, and ongoing developments in Kuala Lumpur and the Klang Valley.
Sales hit RM1bil for FY08.
Unless the market takes a turn for the worse, IJM Land is looking at 20 new project launches worth a total gross development value (GDV) of close to RM1bil over the next 12 months.
Managing director Datuk Soam Heng Choon said the market slowdown had affected mainly the mass market and lower product segments while the medium-high to high-end sector was still showing potential.
“We will focus on medium, medium-high and high-end products that are priced from RM300,000 to RM7.2mil a unit in good locations,” Soam said.
IJM Land now has more than 60 projects in various parts of the country and is reviewing the launches.
He said should conditions deteriorate, “there is a possibility of holding back some of the projects, which may also include the high priced products if demand falls.”
Soam expects the sales of the medium high-end and high-end properties to mitigate the margin squeeze in the lower-end product segment.
He said one of IJM Land’s strengths was having a broad product range in a geographically diversified market across the country.
“This allows the company the flexibility to tweak its product mix and product specifications to suit the current market conditions.
“We have also been prudent in ensuring our projects are located in prime locations and this has kept our projects in the radar screen of buyers, especially those looking for premier properties,” he pointed out.
Being low-rise and low density, Ampersand located in the highly sought after address in Jalan Kia Peng, Kuala Lumpur, stands out among the other high-rise condominium developments in the Kuala Lumpur City Centre (KLCC) area.
The 71 luxurious apartments with built up of 3,000 sq ft to 5,800 sq ft are priced from RM3mil to RM7.2mil, or an average price of RM1,200 per sq ft.
The price has almost doubled from the time when the project was first launched early last year. About 50% of the units have been sold to-date and the project will be completed next year.
In Penang, the maiden launch of IJM Land’s flagship project, The Light will take place in the first quarter next year.
The first residential project called The Light Linear to be launched in the first quarter will have a GDV of RM150mil while Light Point with a GDV of RM90mil will be launched few weeks after that.
The Light Linear will have 328 units with built-up from 1,379 to 1,513 sq ft, while the more spacious The Light Point units are from 1,807 to 4,000 sq ft.
The Light, a RM4.5bil residential and commercial development on Penang islands’ eastern coastline, will be developed over 12 years.
The residential precinct will have 1,186 residences, including waterfront villas and condominiums.
The commercial precinct will comprise office buildings, four hotels, retail malls, dining and entertainment facilities, a seafront park, floating restaurants and facilities for meetings, incentives, conventions and exhibitions.
In Johor Baru, IJM Land is planning to launch its latest development, Nusa Duta on 127 acres in the Iskandar Development Region by the first half of next year. The RM320mil project will comprise mainly landed properties that are priced from RM300,000.
To tap the foreign market, Soam said IJM Land was also resorting to marketing its high-end residences to participants of Malaysia My Second Home programme.
The maiden event was undertaken recently in Seoul to promote the Pearl Regency project to South Korean buyers.
“There is still good interest for quality Malaysian residential products among the Koreans and we plan to promote some of our other projects there in future,” he added.
Soam said property roadshows would also be held in the Middle Eat and Japan next year.
By The Star
For the financial year ending March 31, 2009 (FY09), the company expects to maintain sales at around RM800mil to RM900mil, especially from new project launches in Penang and Johor Baru, and ongoing developments in Kuala Lumpur and the Klang Valley.
Sales hit RM1bil for FY08.
Unless the market takes a turn for the worse, IJM Land is looking at 20 new project launches worth a total gross development value (GDV) of close to RM1bil over the next 12 months.
Managing director Datuk Soam Heng Choon said the market slowdown had affected mainly the mass market and lower product segments while the medium-high to high-end sector was still showing potential.
“We will focus on medium, medium-high and high-end products that are priced from RM300,000 to RM7.2mil a unit in good locations,” Soam said.
IJM Land now has more than 60 projects in various parts of the country and is reviewing the launches.
He said should conditions deteriorate, “there is a possibility of holding back some of the projects, which may also include the high priced products if demand falls.”
Soam expects the sales of the medium high-end and high-end properties to mitigate the margin squeeze in the lower-end product segment.
He said one of IJM Land’s strengths was having a broad product range in a geographically diversified market across the country.
“This allows the company the flexibility to tweak its product mix and product specifications to suit the current market conditions.
“We have also been prudent in ensuring our projects are located in prime locations and this has kept our projects in the radar screen of buyers, especially those looking for premier properties,” he pointed out.
Being low-rise and low density, Ampersand located in the highly sought after address in Jalan Kia Peng, Kuala Lumpur, stands out among the other high-rise condominium developments in the Kuala Lumpur City Centre (KLCC) area.
The 71 luxurious apartments with built up of 3,000 sq ft to 5,800 sq ft are priced from RM3mil to RM7.2mil, or an average price of RM1,200 per sq ft.
The price has almost doubled from the time when the project was first launched early last year. About 50% of the units have been sold to-date and the project will be completed next year.
In Penang, the maiden launch of IJM Land’s flagship project, The Light will take place in the first quarter next year.
The first residential project called The Light Linear to be launched in the first quarter will have a GDV of RM150mil while Light Point with a GDV of RM90mil will be launched few weeks after that.
The Light Linear will have 328 units with built-up from 1,379 to 1,513 sq ft, while the more spacious The Light Point units are from 1,807 to 4,000 sq ft.
The Light, a RM4.5bil residential and commercial development on Penang islands’ eastern coastline, will be developed over 12 years.
The residential precinct will have 1,186 residences, including waterfront villas and condominiums.
The commercial precinct will comprise office buildings, four hotels, retail malls, dining and entertainment facilities, a seafront park, floating restaurants and facilities for meetings, incentives, conventions and exhibitions.
In Johor Baru, IJM Land is planning to launch its latest development, Nusa Duta on 127 acres in the Iskandar Development Region by the first half of next year. The RM320mil project will comprise mainly landed properties that are priced from RM300,000.
To tap the foreign market, Soam said IJM Land was also resorting to marketing its high-end residences to participants of Malaysia My Second Home programme.
The maiden event was undertaken recently in Seoul to promote the Pearl Regency project to South Korean buyers.
“There is still good interest for quality Malaysian residential products among the Koreans and we plan to promote some of our other projects there in future,” he added.
Soam said property roadshows would also be held in the Middle Eat and Japan next year.
By The Star
November 5, 2008
Construction gets much-needed lift
The removal of import duty for cement and long iron and steel products, and abolishment of approved permit (AP) for long iron and steel products will give the construction industry a much-needed boost.
Master Builders Association Malaysia president Ng Kee Leen welcomed the Government’s latest move as a way to promote competitive material pricing and lower construction costs.
“The Government’s reiteration on the waiver of import duty and AP for steel helped clarify the import process, which was not fully understood by all parties earlier.
“The lifting of cement import duty, meanwhile, will lower the domestic cement price which is now 15% to 20% more expensive than imported cement.
“However, it may take months to feel the impact,” he told StarBiz yesterday.
Previously, a 10% import duty was imposed on cement from non-Asean countries.
Cement and Concrete Association of Malaysia executive director Grace Okuda was surprised by the announcement, as the association was not consulted on the waiver of cement import duty.
Lafarge Malayan Cement Bhd president and chief executive officer Bi Yong Chungunco said the company needed to verify the reported statement before giving any comments.
OSK Research analyst Ng Sem Guan said the latest move covered long steel products compared with only billets and certain grade of long bars announced by the Government on May 12.
“While the step may address the contractors’ complaint of the shortage of certain steel products and create a competitive pricing environment, the impact to local steel millers remains nominal, given that local millers benefit from their logistic advantage that allow prompt and small quantity delivery with competitive pricing.
“We also think that the Government may introduce local standard or testing requirement on imported steel products to safeguard public interest and safety hence non-tariff barrier to import,” he said.
By The Star
Master Builders Association Malaysia president Ng Kee Leen welcomed the Government’s latest move as a way to promote competitive material pricing and lower construction costs.
“The Government’s reiteration on the waiver of import duty and AP for steel helped clarify the import process, which was not fully understood by all parties earlier.
“The lifting of cement import duty, meanwhile, will lower the domestic cement price which is now 15% to 20% more expensive than imported cement.
“However, it may take months to feel the impact,” he told StarBiz yesterday.
Previously, a 10% import duty was imposed on cement from non-Asean countries.
Cement and Concrete Association of Malaysia executive director Grace Okuda was surprised by the announcement, as the association was not consulted on the waiver of cement import duty.
Lafarge Malayan Cement Bhd president and chief executive officer Bi Yong Chungunco said the company needed to verify the reported statement before giving any comments.
OSK Research analyst Ng Sem Guan said the latest move covered long steel products compared with only billets and certain grade of long bars announced by the Government on May 12.
“While the step may address the contractors’ complaint of the shortage of certain steel products and create a competitive pricing environment, the impact to local steel millers remains nominal, given that local millers benefit from their logistic advantage that allow prompt and small quantity delivery with competitive pricing.
“We also think that the Government may introduce local standard or testing requirement on imported steel products to safeguard public interest and safety hence non-tariff barrier to import,” he said.
By The Star
November 4, 2008
Local real estate cheap for foreigners
Laws are lenient for them to buy and sell property
DESPITE the current global financial meltdown, the Malaysian property market still remains attractive to foreign investors, according to International Real Estate Federation (FIABCI) Malaysia honorary treasurer Yeow Thit Sang.
“The local property market is still attractive in terms of prices. Properties in Malaysia are among the cheapest in the region,” he told StarBiz.
“Our laws are also comparatively more lenient for foreigners to buy and sell property in Malaysia,” he added.
Yeow said foreigners wanting to purchase property in countries such as Indonesia, the Philippines, Thailand and Vietnam were generally put off by the countries’ respective laws.
Another plus point for foreigners who bought property in Malaysia is that they are not subjected to death taxes, Yeow said.
“Japan has a death tax of 70%. Even in England death duties are stringent. That is why all the Lords are becoming paupers!”
Yeow said FIABCI-Malaysia would be sending a representative to Japan in December to create more awareness about the local property market and to encourage more foreign direct investment (FDI) into Malaysia.
He also said the local political development was not creating uncertainty and was not deterring foreign investors from Malaysia.
“The political scene in Malaysia is a normal democratic process. It is a sign of political maturity rather than uncertainty. It is not causing chaos like some countries,” Yeow said.
On another issue, when asked if the local property market was in a slump, Yeow said: “Our property market has not hit a slump. It is more of a slowdown.”
He attributed the slowdown to rising raw material prices that was sparked by the fuel price hike in June.
“Problems occur when construction cost goes up midway through a project and it is uncertain if it is the developer, contractor or consumer that will bear the cost,” Yeow said.
He said many contractors were increasingly reluctant to take on projects without a variation clause spelt out in the contract.
“Both contractors and developers should insist on a variation clause in their contracts to safeguard their interests.
“Should construction costs go up midway through the project, they can immediately determine who bears the cost and not have projects hanging,” Yeow said.
Going forward, he said he did not foresee see a slump in the local property market.
“There can never be a slump so long as there is demand. There is a lot of migration from rural to urban areas.
“The population is growing steadily and there will always be a need to house people,” he said.
“From an investment point of view, buying property is also a good safeguard against inflation,” Yeow added.
Yeow believes a high level of unemployment in the country could cause the local property sector to tumble.
“If unemployment were to rise, people will not be able to pay their loans and that will cause a slump. When that happens, banks will also take back the property,” he said, adding that the unemployment rate in Malaysia was low now.
“We still need to bring in foreign workers,” Yeow said.
On another note, Yeow said the standard of property development in Malaysia had improved tremendously over the years and it was being benchmarked against international standards.
“Our developments are definitely on par with those of other countries. Many of our projects have won international awards such as FIABCI International Prix d’Excellence,” he said.
The International Prix d’Excellence is an annual competition that honours the world’s best property projects.
On the local front, developers are recognised for their development projects and are honoured at the annual Malaysia Property Award.
Winners of the Malaysia Property Award in their relevant categories will go on to represent Malaysia the following year at the International Prix d’Excellence.
FIABCI Malaysia will be organising its 16th Malaysia Property Award on Nov 12 at the One World Hotel in Petaling Jaya, with Malayan Banking Bhd as the official sponsor.
The categories that will be contested are: Property Man of the Year, Master Plan, Residential Development (low rise and high rise), Retail Development, Industrial Development, Specialised Project (two categories), Office Development, Hotel Development and Resort Development.
The Yang di-Pertuan Agong and Raja Permaisuri Agong will be the guests of honour at the prestigious event.
By The Star
DESPITE the current global financial meltdown, the Malaysian property market still remains attractive to foreign investors, according to International Real Estate Federation (FIABCI) Malaysia honorary treasurer Yeow Thit Sang.
“The local property market is still attractive in terms of prices. Properties in Malaysia are among the cheapest in the region,” he told StarBiz.
“Our laws are also comparatively more lenient for foreigners to buy and sell property in Malaysia,” he added.
Yeow said foreigners wanting to purchase property in countries such as Indonesia, the Philippines, Thailand and Vietnam were generally put off by the countries’ respective laws.
Another plus point for foreigners who bought property in Malaysia is that they are not subjected to death taxes, Yeow said.
“Japan has a death tax of 70%. Even in England death duties are stringent. That is why all the Lords are becoming paupers!”
Yeow said FIABCI-Malaysia would be sending a representative to Japan in December to create more awareness about the local property market and to encourage more foreign direct investment (FDI) into Malaysia.
He also said the local political development was not creating uncertainty and was not deterring foreign investors from Malaysia.
“The political scene in Malaysia is a normal democratic process. It is a sign of political maturity rather than uncertainty. It is not causing chaos like some countries,” Yeow said.
On another issue, when asked if the local property market was in a slump, Yeow said: “Our property market has not hit a slump. It is more of a slowdown.”
He attributed the slowdown to rising raw material prices that was sparked by the fuel price hike in June.
“Problems occur when construction cost goes up midway through a project and it is uncertain if it is the developer, contractor or consumer that will bear the cost,” Yeow said.
He said many contractors were increasingly reluctant to take on projects without a variation clause spelt out in the contract.
“Both contractors and developers should insist on a variation clause in their contracts to safeguard their interests.
“Should construction costs go up midway through the project, they can immediately determine who bears the cost and not have projects hanging,” Yeow said.
Going forward, he said he did not foresee see a slump in the local property market.
“There can never be a slump so long as there is demand. There is a lot of migration from rural to urban areas.
“The population is growing steadily and there will always be a need to house people,” he said.
“From an investment point of view, buying property is also a good safeguard against inflation,” Yeow added.
Yeow believes a high level of unemployment in the country could cause the local property sector to tumble.
“If unemployment were to rise, people will not be able to pay their loans and that will cause a slump. When that happens, banks will also take back the property,” he said, adding that the unemployment rate in Malaysia was low now.
“We still need to bring in foreign workers,” Yeow said.
On another note, Yeow said the standard of property development in Malaysia had improved tremendously over the years and it was being benchmarked against international standards.
“Our developments are definitely on par with those of other countries. Many of our projects have won international awards such as FIABCI International Prix d’Excellence,” he said.
The International Prix d’Excellence is an annual competition that honours the world’s best property projects.
On the local front, developers are recognised for their development projects and are honoured at the annual Malaysia Property Award.
Winners of the Malaysia Property Award in their relevant categories will go on to represent Malaysia the following year at the International Prix d’Excellence.
FIABCI Malaysia will be organising its 16th Malaysia Property Award on Nov 12 at the One World Hotel in Petaling Jaya, with Malayan Banking Bhd as the official sponsor.
The categories that will be contested are: Property Man of the Year, Master Plan, Residential Development (low rise and high rise), Retail Development, Industrial Development, Specialised Project (two categories), Office Development, Hotel Development and Resort Development.
The Yang di-Pertuan Agong and Raja Permaisuri Agong will be the guests of honour at the prestigious event.
By The Star
November 2, 2008
Plenitude reviews projects on soft property sector
Plenitude Bhd is reviewing next year’s proposed launch of three housing projects in Kuala Lumpur and Penang, in view of the softening local property market.
Executive director Tan Seng Chye said the company was monitoring the economic conditions and market demand before proceeding with the projects.
“We hope to go as planned but we will be looking at the situation closely and study the demand first,” he said after the company AGM yesterday.
Plenitude non-independent non-executive director Zukarnine Shah Zainal Abidin (left) and Tan Seng Chye at the media briefing.
The Kuala Lumpur projects, comprising bungalows, have a gross development value (GDV) of RM147mil for Damansara Heights and RM78mil for Bukit Tunku. Bungalows in the two areas carry price tags from RM3mil.
The Penang project comprises three-storey semi-detached houses and condominiums with a GDV of RM184mil.
Tan said Plenitude expected to maintain pre-tax profit margin for the financial year ending June 30 (FY09) at a level similar to FY08’s 31%, as building material prices had come off their peaks earlier this year.
“We were not affected by the high prices earlier as our projects were near completion.
“Building material prices have eased in the last few months. We’ll be able to maintain margins, going forward, if the prices stabilise,” he said.
Although the property market had seen a slowdown since the first half of this year, Plenitude’s earnings for FY09 would be supported by its unbilled sales of RM216mil, he said.
Earlier this year, the company launched Tebrau City Residences in Johor which has a GDV of RM321mil.
The project, comprising serviced apartments, has secured a take-up rate of 60%.
Plenitude said it currently has 1,849 acres of undeveloped land, which it could use for projects in the next 10 to 15 years.
For FY08, Plenitude’s net profit rose 39% to RM78.6mil while revenue surged 46% to RM347.8mil.
By The Star
Executive director Tan Seng Chye said the company was monitoring the economic conditions and market demand before proceeding with the projects.
“We hope to go as planned but we will be looking at the situation closely and study the demand first,” he said after the company AGM yesterday.
Plenitude non-independent non-executive director Zukarnine Shah Zainal Abidin (left) and Tan Seng Chye at the media briefing.
The Kuala Lumpur projects, comprising bungalows, have a gross development value (GDV) of RM147mil for Damansara Heights and RM78mil for Bukit Tunku. Bungalows in the two areas carry price tags from RM3mil.
The Penang project comprises three-storey semi-detached houses and condominiums with a GDV of RM184mil.
Tan said Plenitude expected to maintain pre-tax profit margin for the financial year ending June 30 (FY09) at a level similar to FY08’s 31%, as building material prices had come off their peaks earlier this year.
“We were not affected by the high prices earlier as our projects were near completion.
“Building material prices have eased in the last few months. We’ll be able to maintain margins, going forward, if the prices stabilise,” he said.
Although the property market had seen a slowdown since the first half of this year, Plenitude’s earnings for FY09 would be supported by its unbilled sales of RM216mil, he said.
Earlier this year, the company launched Tebrau City Residences in Johor which has a GDV of RM321mil.
The project, comprising serviced apartments, has secured a take-up rate of 60%.
Plenitude said it currently has 1,849 acres of undeveloped land, which it could use for projects in the next 10 to 15 years.
For FY08, Plenitude’s net profit rose 39% to RM78.6mil while revenue surged 46% to RM347.8mil.
By The Star
October 30, 2008
M’sia urged to promote property tourism
It benefits the local hotel and retail industry
Malaysia should promote “property” tourism to bring in foreign direct investment that would benefit not only the economy but also the retail industry.
International Real Estate Federation (FIABCI) Malaysia president Datuk Richard Fong said some real estate agencies in Penang had started to bring in groups of foreign tourists under a “property” tourism package that included visits to property launches and show houses.
The idea, he said, was to encourage these tourists to buy local property. As these visitors also shopped and stayed at hotels, their visits had benefited the hotel and retail industry, he added.
Fong, who is Glomac Bhd executive vice chairman, said the newly set up Malaysian Investment Inc by FIABCI Malaysia and the Economic Planning Unit, would strive to promote Malaysian properties abroad.
“With 1,000 foreigners each buying RM1mil worth of property in Malaysia, that will amount to RM1bil,” he said during a panel discussion on the “Synergies of shopping on tourism” at the Council of Asian Shopping Centres Conference 2008 on Wednesday.
He said it had been found that each foreign expatriate who bought a home in Malaysia spent an average of RM10,000 a month.
This would amount to RM10mil a month for 1,000 expatriates.
“They will also bring their friends to visit Malaysia. This is good not only for local properties but also for all of you (shopping centres),” he said, adding that the Malaysia My Second Home (MM2H) had been “under-played”.
Malaysian Association for Shopping and Highrise Complex Management advisor Datuk Eddy Chen, while advocating wholesome “family” tourism, also noted that “sin” tourism like casinos and karaoke lounges had brought in the big spenders for certain countries.
While it was a good to promote Malaysia as a tourism hub, Chen said it was also important to look into offering more quality products and services and increase Internet marketing.
“We’re neither here nor there whereas Singapore offers a cocktail of incentives,” said the Metro Kajang Group managing director.
Tune Hotels Sdn Bhd chief executive officer Mark Lankester in calling for a revival of “sports” tourism said Tune Hotels and its sister company AirAsia Bhd, were making it affordable for tourists to travel and stay in Malaysia.
By paying less on air travel and accommodation, tourists could spend more on shopping, he said, adding that it was part of Tune Hotels’ strategy to set up hotels near shopping areas and at shopping centres.
Malaysia Association of Convention and Exhibition Organisers and Suppliers president Jonathan Kan called for more “cross border” selling to promote travel among Asean nations and bring in more international conferences to Malaysia.
By The Star
Malaysia should promote “property” tourism to bring in foreign direct investment that would benefit not only the economy but also the retail industry.
International Real Estate Federation (FIABCI) Malaysia president Datuk Richard Fong said some real estate agencies in Penang had started to bring in groups of foreign tourists under a “property” tourism package that included visits to property launches and show houses.
The idea, he said, was to encourage these tourists to buy local property. As these visitors also shopped and stayed at hotels, their visits had benefited the hotel and retail industry, he added.
Fong, who is Glomac Bhd executive vice chairman, said the newly set up Malaysian Investment Inc by FIABCI Malaysia and the Economic Planning Unit, would strive to promote Malaysian properties abroad.
“With 1,000 foreigners each buying RM1mil worth of property in Malaysia, that will amount to RM1bil,” he said during a panel discussion on the “Synergies of shopping on tourism” at the Council of Asian Shopping Centres Conference 2008 on Wednesday.
He said it had been found that each foreign expatriate who bought a home in Malaysia spent an average of RM10,000 a month.
This would amount to RM10mil a month for 1,000 expatriates.
“They will also bring their friends to visit Malaysia. This is good not only for local properties but also for all of you (shopping centres),” he said, adding that the Malaysia My Second Home (MM2H) had been “under-played”.
Malaysian Association for Shopping and Highrise Complex Management advisor Datuk Eddy Chen, while advocating wholesome “family” tourism, also noted that “sin” tourism like casinos and karaoke lounges had brought in the big spenders for certain countries.
While it was a good to promote Malaysia as a tourism hub, Chen said it was also important to look into offering more quality products and services and increase Internet marketing.
“We’re neither here nor there whereas Singapore offers a cocktail of incentives,” said the Metro Kajang Group managing director.
Tune Hotels Sdn Bhd chief executive officer Mark Lankester in calling for a revival of “sports” tourism said Tune Hotels and its sister company AirAsia Bhd, were making it affordable for tourists to travel and stay in Malaysia.
By paying less on air travel and accommodation, tourists could spend more on shopping, he said, adding that it was part of Tune Hotels’ strategy to set up hotels near shopping areas and at shopping centres.
Malaysia Association of Convention and Exhibition Organisers and Suppliers president Jonathan Kan called for more “cross border” selling to promote travel among Asean nations and bring in more international conferences to Malaysia.
By The Star
October 29, 2008
Mutiara set to launch RM1b worth of projects
It plans to launch RM1bil worth of developments next year despite poor economic outlook
Mutiara Goodyear Development Bhd plans to launch about RM1bil worth of projects next year despite the poor economic outlook, said chief executive officer Kee Cheng Teik.
“Although the economic uncertainty has hit investors’ confidence level, there was demand for good projects with good locations especially in the Klang Valley and Penang,” he said after the company AGM yesterday.
Kee said the company would be prudent to maintain a strong balance sheet.
“We will be more careful as to which projects we would launch first, depending on market conditions while focusing on containing costs involved.”
Mutiara had a net cash flow of about RM50mil as at July 31.
Projects in Mutiara’s pipeline include a commercial block in Sunway in Petaling Jaya, a 69-acre housing scheme in Kajang and a 456-acre mixed development project in Penang.
The company is also involved in the exclusive 80-acre freehold Nadayu property project near Taman Melawati in Kuala Lumpur, that will be launched by the first quarter of 2009.
Kee, referring to talk that banks were limiting borrowings for property developers, assured that all of Mutiara’s projects had sufficient financing.
“Our bankers have been very supportive of our projects,” he said.
Mutiara was looking to increase its landbank, which currently stood at about 890 acres in the Klang Valley and Penang, Kee said.
He added that the company was also exploring opportunities to develop properties overseas, especially in countries like Vietnam and China.
By The Star
Mutiara Goodyear Development Bhd plans to launch about RM1bil worth of projects next year despite the poor economic outlook, said chief executive officer Kee Cheng Teik.
“Although the economic uncertainty has hit investors’ confidence level, there was demand for good projects with good locations especially in the Klang Valley and Penang,” he said after the company AGM yesterday.
Kee said the company would be prudent to maintain a strong balance sheet.
“We will be more careful as to which projects we would launch first, depending on market conditions while focusing on containing costs involved.”
Mutiara had a net cash flow of about RM50mil as at July 31.
Projects in Mutiara’s pipeline include a commercial block in Sunway in Petaling Jaya, a 69-acre housing scheme in Kajang and a 456-acre mixed development project in Penang.
The company is also involved in the exclusive 80-acre freehold Nadayu property project near Taman Melawati in Kuala Lumpur, that will be launched by the first quarter of 2009.
Kee, referring to talk that banks were limiting borrowings for property developers, assured that all of Mutiara’s projects had sufficient financing.
“Our bankers have been very supportive of our projects,” he said.
Mutiara was looking to increase its landbank, which currently stood at about 890 acres in the Klang Valley and Penang, Kee said.
He added that the company was also exploring opportunities to develop properties overseas, especially in countries like Vietnam and China.
By The Star
October 28, 2008
Sunrise is confident RM1.3bil in unbilled sales can sustain performance over three years
Despite softer conditions in the property market, Sunrise Bhd expects to perform well in the next two to three years due to its high unbilled sales of RM1.36bil.
Executive deputy chairman Datuk Allan Lim Kim Huat said the sales were equivalent to about 2.6 times its average annual income over the past three years.
He said these sales came from four ongoing projects, namely 10 Mont’ Kiara (MK10), 11 Mont’ Kiara (MK11), Solaris Dutamas and The Residence.
“With these projects as well as three new projects in the pipeline, I think we will do fine in the next two to three years,” he told reporters after the company’s AGM yesterday.
Unbilled sales are similar to order books of construction companies; both refer to sales secured from customers but not yet booked as revenue in the profit and loss account.
As at July,Sunrise had sold 93% of MK10 units, 45% of MK 11, 92% of Solaris Dutamas, 9% of The Residence Phase 2B, 90% of Mont’ Kiara Meridin, 95% of Mont’ Kiara Banyan, and 100% of Kiara Designer Suites-Kiara Walk.
“We are quite busy constructing and delivering to buyers units in the ongoing projects.
“Although things are a little uncertain due to the economic slowdown, the next three years will be a busy period for us,” he said.
Lim added that Sunrise foresaw the pressure on margins easing given the recent plunge in commodity prices.
However, the company plans to defer the launch of its three new projects in view of weaker demand.
The three projects are a six-star condominium development called 28 Mont’ Kiara, two office blocks at Solaris Tower in Kuala Lumpur, and the first phase of a residential development in Vancouver, Canada.
“We are not under pressure to launch any project, as we want to launch them at the right time and at the right price,” he said.
Although there is a slowdown in demand, Lim does not see any major financial problems for the buyers.
“It is just that they are more careful making investments and have a wait-and-see attitude,” he said.
Originally, Sunrise had planned to launch the two office blocks and 28 Mont’ Kiara by year-end while the Canadian project was expected to be launched by February or March 2009.
Lim said all new launches would depend on market conditions.
He added that it might launch the Vancouver project, next year. The project has an estimated gross development value of C$350mil .
By The Star
Executive deputy chairman Datuk Allan Lim Kim Huat said the sales were equivalent to about 2.6 times its average annual income over the past three years.
He said these sales came from four ongoing projects, namely 10 Mont’ Kiara (MK10), 11 Mont’ Kiara (MK11), Solaris Dutamas and The Residence.
“With these projects as well as three new projects in the pipeline, I think we will do fine in the next two to three years,” he told reporters after the company’s AGM yesterday.
Unbilled sales are similar to order books of construction companies; both refer to sales secured from customers but not yet booked as revenue in the profit and loss account.
As at July,Sunrise had sold 93% of MK10 units, 45% of MK 11, 92% of Solaris Dutamas, 9% of The Residence Phase 2B, 90% of Mont’ Kiara Meridin, 95% of Mont’ Kiara Banyan, and 100% of Kiara Designer Suites-Kiara Walk.
“We are quite busy constructing and delivering to buyers units in the ongoing projects.
“Although things are a little uncertain due to the economic slowdown, the next three years will be a busy period for us,” he said.
Lim added that Sunrise foresaw the pressure on margins easing given the recent plunge in commodity prices.
However, the company plans to defer the launch of its three new projects in view of weaker demand.
The three projects are a six-star condominium development called 28 Mont’ Kiara, two office blocks at Solaris Tower in Kuala Lumpur, and the first phase of a residential development in Vancouver, Canada.
“We are not under pressure to launch any project, as we want to launch them at the right time and at the right price,” he said.
Although there is a slowdown in demand, Lim does not see any major financial problems for the buyers.
“It is just that they are more careful making investments and have a wait-and-see attitude,” he said.
Originally, Sunrise had planned to launch the two office blocks and 28 Mont’ Kiara by year-end while the Canadian project was expected to be launched by February or March 2009.
Lim said all new launches would depend on market conditions.
He added that it might launch the Vancouver project, next year. The project has an estimated gross development value of C$350mil .
By The Star
October 26, 2008
Berjaya Land taking FDI in Korea to new levels
Malaysian foreign direct investment (FDI) in South Korea’s real estate sector is poised to soar, especially on Jeju Island, famous as the set of Korean romance drama Winter Sonata and TV series The King and Four Guardians.
This is largely due to local listed developer Berjaya Land Bhd (BLand), which is pumping in an initial US$30 million (US$1=RM3.50) to fully develop the US$3.6 billion Berjaya Jeju Resort by 2017.
Taking advantage of South Korea’s raft of "exemplary" incentives such as its "no visa, no tax" policies, BLand’s undertaking is via
Berjaya Jeju Ltd, an 81:19 joint venture with the Jeju Free International City Development Centre (JDC). Berjaya Jeju Resort has been conceived to be an eco-friendly, world-class integrated tourism and recreational destination comprising:
• The Creek Resort;
• Condominiums commanding views of Halla, Korea’s highest mountain, and the Jungmoon golf course;
• Villas overlooking the East China Sea;
• Wellness spas;
• A full-fledged casino with a 50-storey hotel;
• Another luxury hotel with serviced suites;
• A shopping mall;
• a 6,000-seat indoor arena to host global events such as basketball tournaments and concerts; and
• Generous public spaces.
"We aim for Berjaya Jeju Resort to set the benchmark for future waterfront developments on the island and redefine its waterfront lifestyles," said BLand chief executive officer Datuk Francis Ng at a recent media tour of the development’s 183-acre site along the picturesque Yerae coastline at the southern tip of Seogwipo City.
More than that, because Jeju is "within a one- to two-hour flight radius of a population of 750 million people including those in the Korean peninsula; major cities in China such as Shanghai, Beijing and Tianjin, as well as Tokyo and Osaka in Japan", Ng said the resort will also "establish Jeju as an iconic global tourist destination".
"BLand is confident of the venture’s success as both the Korean central and Jeju provincial governments have been very supportive and helpful, especially JDC which has been wooing global buyers of second homes and visitors to Jeju during their roadshows abroad," he added.
"Also, we don’t expect funding problems as in addition to our reserves, bridging loans will come in once the project goes full swing."
By December, BLand plans to launch some 300 condos with built-up areas ranging from 1,800sq ft to 2,500sq ft at a starting point of US$600psf to US$700psf. It expects take-up to be favourable as local and foreign purchasers in Jeju are exempt from paying real property gains tax.
By The New Strait Times
This is largely due to local listed developer Berjaya Land Bhd (BLand), which is pumping in an initial US$30 million (US$1=RM3.50) to fully develop the US$3.6 billion Berjaya Jeju Resort by 2017.
Taking advantage of South Korea’s raft of "exemplary" incentives such as its "no visa, no tax" policies, BLand’s undertaking is via
Berjaya Jeju Ltd, an 81:19 joint venture with the Jeju Free International City Development Centre (JDC). Berjaya Jeju Resort has been conceived to be an eco-friendly, world-class integrated tourism and recreational destination comprising:
• The Creek Resort;
• Condominiums commanding views of Halla, Korea’s highest mountain, and the Jungmoon golf course;
• Villas overlooking the East China Sea;
• Wellness spas;
• A full-fledged casino with a 50-storey hotel;
• Another luxury hotel with serviced suites;
• A shopping mall;
• a 6,000-seat indoor arena to host global events such as basketball tournaments and concerts; and
• Generous public spaces.
"We aim for Berjaya Jeju Resort to set the benchmark for future waterfront developments on the island and redefine its waterfront lifestyles," said BLand chief executive officer Datuk Francis Ng at a recent media tour of the development’s 183-acre site along the picturesque Yerae coastline at the southern tip of Seogwipo City.
More than that, because Jeju is "within a one- to two-hour flight radius of a population of 750 million people including those in the Korean peninsula; major cities in China such as Shanghai, Beijing and Tianjin, as well as Tokyo and Osaka in Japan", Ng said the resort will also "establish Jeju as an iconic global tourist destination".
"BLand is confident of the venture’s success as both the Korean central and Jeju provincial governments have been very supportive and helpful, especially JDC which has been wooing global buyers of second homes and visitors to Jeju during their roadshows abroad," he added.
"Also, we don’t expect funding problems as in addition to our reserves, bridging loans will come in once the project goes full swing."
By December, BLand plans to launch some 300 condos with built-up areas ranging from 1,800sq ft to 2,500sq ft at a starting point of US$600psf to US$700psf. It expects take-up to be favourable as local and foreign purchasers in Jeju are exempt from paying real property gains tax.
By The New Strait Times
October 24, 2008
Emkay plans office project in Cyberjaya
It’s set to develop 8 office buildings with GDV of RM800m
The Emkay Group plans to construct eight office buildings in Cyberjaya with a total gross development value (GDV) of over RM800mil, as it sees great prospects for such properties in the area.
Chairman Tan Sri Mustapha Kamal Abu Bakar said the buildings would be built on a 8ha-site and construction would probably start by end-2009.
“The projects would take about six years to complete,” he said after a press briefing yesterday on the disposal of its three office buildings to Amanah Raya Bhd for RM266mil. The three buildings are Bangunan Mustapha Kamal and block A and B of MKN Embassy Techzone.
Mustapha Kamal said the rental rates for office buildings in Cyberjaya were expected to grow further due to the aggressive development in nearby Putrajaya.
“The rental rates in the area had increased to RM5 per sq ft from RM1 about 10 years ago,” he said, adding that demand for office buildings was still robust in Cyberjaya.
On the impact of the global crisis, chief operating officer Peter Teh Heng Poh said the effect was minimal, as most of its projects had been sold.
“There has been a slowdown in the demand of certain kinds of properties, such as apartments, in well-developed areas,” he added.
Teh said the company would create more products that could cater to the needs of information technology companies and was currently involved in the development of data centres.
On Emkay’s financial status, he said: “We have a good cash flow and are not facing any financing problems as the banks are supportive.”
Meanwhile, Amanah Raya group managing director Datuk Ahmad Rodzi Pawanteh said the company would lease Bangunan Mustapha Kamal to the Education Ministry for 10 years.
“We are in negotiation to lease the two remaining buildings to government bodies as well,” he said.
On the possibility of injecting the three buildings into AmanahRaya Real Estate Investment Trust (ARREIT), Ahmad Rodzi said the proposal was possible but the company would leave it to ARREIT to decide.
Amanah Raya subsidiary AmanahRaya JMF Asset Management Sdn Bhd is the manager of main board-listed ARREIT.
By The Star
The Emkay Group plans to construct eight office buildings in Cyberjaya with a total gross development value (GDV) of over RM800mil, as it sees great prospects for such properties in the area.
Chairman Tan Sri Mustapha Kamal Abu Bakar said the buildings would be built on a 8ha-site and construction would probably start by end-2009.
“The projects would take about six years to complete,” he said after a press briefing yesterday on the disposal of its three office buildings to Amanah Raya Bhd for RM266mil. The three buildings are Bangunan Mustapha Kamal and block A and B of MKN Embassy Techzone.
Mustapha Kamal said the rental rates for office buildings in Cyberjaya were expected to grow further due to the aggressive development in nearby Putrajaya.
“The rental rates in the area had increased to RM5 per sq ft from RM1 about 10 years ago,” he said, adding that demand for office buildings was still robust in Cyberjaya.
On the impact of the global crisis, chief operating officer Peter Teh Heng Poh said the effect was minimal, as most of its projects had been sold.
“There has been a slowdown in the demand of certain kinds of properties, such as apartments, in well-developed areas,” he added.
Teh said the company would create more products that could cater to the needs of information technology companies and was currently involved in the development of data centres.
On Emkay’s financial status, he said: “We have a good cash flow and are not facing any financing problems as the banks are supportive.”
Meanwhile, Amanah Raya group managing director Datuk Ahmad Rodzi Pawanteh said the company would lease Bangunan Mustapha Kamal to the Education Ministry for 10 years.
“We are in negotiation to lease the two remaining buildings to government bodies as well,” he said.
On the possibility of injecting the three buildings into AmanahRaya Real Estate Investment Trust (ARREIT), Ahmad Rodzi said the proposal was possible but the company would leave it to ARREIT to decide.
Amanah Raya subsidiary AmanahRaya JMF Asset Management Sdn Bhd is the manager of main board-listed ARREIT.
By The Star
Emkay plans office project in Cyberjaya
It’s set to develop 8 office buildings with GDV of RM800m
The Emkay Group plans to construct eight office buildings in Cyberjaya with a total gross development value (GDV) of over RM800mil, as it sees great prospects for such properties in the area.
Chairman Tan Sri Mustapha Kamal Abu Bakar said the buildings would be built on a 8ha-site and construction would probably start by end-2009.
“The projects would take about six years to complete,” he said after a press briefing yesterday on the disposal of its three office buildings to Amanah Raya Bhd for RM266mil. The three buildings are Bangunan Mustapha Kamal and block A and B of MKN Embassy Techzone.
Mustapha Kamal said the rental rates for office buildings in Cyberjaya were expected to grow further due to the aggressive development in nearby Putrajaya.
“The rental rates in the area had increased to RM5 per sq ft from RM1 about 10 years ago,” he said, adding that demand for office buildings was still robust in Cyberjaya.
On the impact of the global crisis, chief operating officer Peter Teh Heng Poh said the effect was minimal, as most of its projects had been sold.
“There has been a slowdown in the demand of certain kinds of properties, such as apartments, in well-developed areas,” he added.
Teh said the company would create more products that could cater to the needs of information technology companies and was currently involved in the development of data centres.
On Emkay’s financial status, he said: “We have a good cash flow and are not facing any financing problems as the banks are supportive.”
Meanwhile, Amanah Raya group managing director Datuk Ahmad Rodzi Pawanteh said the company would lease Bangunan Mustapha Kamal to the Education Ministry for 10 years.
“We are in negotiation to lease the two remaining buildings to government bodies as well,” he said.
On the possibility of injecting the three buildings into AmanahRaya Real Estate Investment Trust (ARREIT), Ahmad Rodzi said the proposal was possible but the company would leave it to ARREIT to decide.
Amanah Raya subsidiary AmanahRaya JMF Asset Management Sdn Bhd is the manager of main board-listed ARREIT.
By The Star
The Emkay Group plans to construct eight office buildings in Cyberjaya with a total gross development value (GDV) of over RM800mil, as it sees great prospects for such properties in the area.
Chairman Tan Sri Mustapha Kamal Abu Bakar said the buildings would be built on a 8ha-site and construction would probably start by end-2009.
“The projects would take about six years to complete,” he said after a press briefing yesterday on the disposal of its three office buildings to Amanah Raya Bhd for RM266mil. The three buildings are Bangunan Mustapha Kamal and block A and B of MKN Embassy Techzone.
Mustapha Kamal said the rental rates for office buildings in Cyberjaya were expected to grow further due to the aggressive development in nearby Putrajaya.
“The rental rates in the area had increased to RM5 per sq ft from RM1 about 10 years ago,” he said, adding that demand for office buildings was still robust in Cyberjaya.
On the impact of the global crisis, chief operating officer Peter Teh Heng Poh said the effect was minimal, as most of its projects had been sold.
“There has been a slowdown in the demand of certain kinds of properties, such as apartments, in well-developed areas,” he added.
Teh said the company would create more products that could cater to the needs of information technology companies and was currently involved in the development of data centres.
On Emkay’s financial status, he said: “We have a good cash flow and are not facing any financing problems as the banks are supportive.”
Meanwhile, Amanah Raya group managing director Datuk Ahmad Rodzi Pawanteh said the company would lease Bangunan Mustapha Kamal to the Education Ministry for 10 years.
“We are in negotiation to lease the two remaining buildings to government bodies as well,” he said.
On the possibility of injecting the three buildings into AmanahRaya Real Estate Investment Trust (ARREIT), Ahmad Rodzi said the proposal was possible but the company would leave it to ARREIT to decide.
Amanah Raya subsidiary AmanahRaya JMF Asset Management Sdn Bhd is the manager of main board-listed ARREIT.
By The Star
October 23, 2008
Relaxed FIC rules boon for residential property
FIABCI wants restrictions for commercial sector eased too
Further liberalisation of the Foreign Investment Committee (FIC) guidelines to attract foreign investors to the local property market, especially for commercial property, is most welcomed, industry players said.
It would be a most timely measure to raise the country’s attractiveness as a real estate investment destination, they said.
Lauding the economic stabilisation plans announced by Deputy Prime Minister Datuk Seri Najib Tun Razak yesterday, industry players said the Government’s proposed measures to review the FIC guidelines for the property sector would cushion the market from a demand slowdown caused by the global financial meltdown.
International Real Estate Federation (FIABCI) Malaysia president Datuk Richard Fong said while the FIC guidelines for residential property purchases by foreigners had been relaxed over the years, the commercial property sector was still subject to strict regulations.
“Currently, a foreigner who wants to invest in any commercial property such as offices, retail malls, shop lots and factories but does not intend to occupy the premises himself, is required to have a bumiputra partner taking up 30% stake in the investment before he can go ahead with the purchase.
“This has been a huge restriction to commercial property sale as the guideline is deemed impractical and not advantageous to either party. It is not easy to find the right bumiputra partner who has the financial means to tie down their money for a commercial property purchase which usually runs into millions of ringgit,” Fong said.
Calling for the restriction to be relaxed, he said FIABCI Malaysia had proposed to the Government to impose such a requirement only on investments above RM100mil.
“There have been many instances where foreign interest for commercial property of RM50mil to RM100mil have been rejected because the right bumiputra partners could not be found,” he pointed out.
Fong said the relaxed FIC guidelines for the housing market that were introduced in December 2006 had attracted stronger interest from Middle Eastern, Korean, Japanese, Chinese, British and American buyers.
Since then, FIC approval for housing units priced from RM250,000 and restrictions on the usage and the number of units foreigners can purchase had been lifted.
Stressing that the property sector had the potential to attract higher foreign investments, Fong said the joint public-private sector initiative to launch Malaysia Property Inc next year to promote Malaysia’s real estate overseas had targeted to attract RM10bil in foreign investments over the next five years.
Meanwhile, Real Estate and Housing Developers Association president Datuk Ng Seing Liong said while the FIC had been relaxing guidelines for property purchases by foreigners, there were still restrictions imposed by state authorities.
At the state level, each state authority has the discretion to consider acquisition by a foreigner based on the location and type of property and the percentage of total units in a project. The transfer of property title is under the jurisdiction of the state government.
“These pertain mostly to issuance of property titles for projects involving state-alienated lands and bumiputra lots. State governments should abide by the Federal Government’s directive to relax rulings on foreign purchases to ensure the success of these measures,” Ng said.
By The Star
Further liberalisation of the Foreign Investment Committee (FIC) guidelines to attract foreign investors to the local property market, especially for commercial property, is most welcomed, industry players said.
It would be a most timely measure to raise the country’s attractiveness as a real estate investment destination, they said.
Lauding the economic stabilisation plans announced by Deputy Prime Minister Datuk Seri Najib Tun Razak yesterday, industry players said the Government’s proposed measures to review the FIC guidelines for the property sector would cushion the market from a demand slowdown caused by the global financial meltdown.
International Real Estate Federation (FIABCI) Malaysia president Datuk Richard Fong said while the FIC guidelines for residential property purchases by foreigners had been relaxed over the years, the commercial property sector was still subject to strict regulations.
“Currently, a foreigner who wants to invest in any commercial property such as offices, retail malls, shop lots and factories but does not intend to occupy the premises himself, is required to have a bumiputra partner taking up 30% stake in the investment before he can go ahead with the purchase.
“This has been a huge restriction to commercial property sale as the guideline is deemed impractical and not advantageous to either party. It is not easy to find the right bumiputra partner who has the financial means to tie down their money for a commercial property purchase which usually runs into millions of ringgit,” Fong said.
Calling for the restriction to be relaxed, he said FIABCI Malaysia had proposed to the Government to impose such a requirement only on investments above RM100mil.
“There have been many instances where foreign interest for commercial property of RM50mil to RM100mil have been rejected because the right bumiputra partners could not be found,” he pointed out.
Fong said the relaxed FIC guidelines for the housing market that were introduced in December 2006 had attracted stronger interest from Middle Eastern, Korean, Japanese, Chinese, British and American buyers.
Since then, FIC approval for housing units priced from RM250,000 and restrictions on the usage and the number of units foreigners can purchase had been lifted.
Stressing that the property sector had the potential to attract higher foreign investments, Fong said the joint public-private sector initiative to launch Malaysia Property Inc next year to promote Malaysia’s real estate overseas had targeted to attract RM10bil in foreign investments over the next five years.
Meanwhile, Real Estate and Housing Developers Association president Datuk Ng Seing Liong said while the FIC had been relaxing guidelines for property purchases by foreigners, there were still restrictions imposed by state authorities.
At the state level, each state authority has the discretion to consider acquisition by a foreigner based on the location and type of property and the percentage of total units in a project. The transfer of property title is under the jurisdiction of the state government.
“These pertain mostly to issuance of property titles for projects involving state-alienated lands and bumiputra lots. State governments should abide by the Federal Government’s directive to relax rulings on foreign purchases to ensure the success of these measures,” Ng said.
By The Star
October 20, 2008
No go for condo project
City Hall issues stop-work oeder on Platinum Hill Condominium
After ednless complaints from residents in Taman Melati Utama in Setapak of noise pollution from a neighbouring condominium project, City Hall yesterday sealed off the entrace to the Platinum Hill projects and issued a stop-work order to the developer.
Malay Mail visited the area and found a City Hall notice dated Oct 19 on the sealed entrance directiong the developer to cease work with immediate effect.
Addressed to the developer, Platinum Victory Sdn Bhd, with a carbon copy to the CL Architect, the noticce from the City Hall Development Department signed by Zamizi Zakaria, the assistant building surveyor of the department, said the developer had breeched Section 70 (13)(d) of the Road, Drainage and Buildings Act 1974.
City Hall stated the notice was due to provisions under the Act which the developer had ignored, namely, carrying out beyond the permitted hours.
The notice warned that if the developer ignored the notice and continued constuction work it was liable for prosecution under Section 70 of said Act. Several construction workers who were staying on the site said the City Hall officers came inh the morning and sealed off the place.
"We noticed several vehicles at the entrance in the morining but as we were not working today (Oct 19) we did not know about ther matter until one of our supervisors came and told us that work has been temporarily suspended until further notice," said one of the workers.
Meanwhile, Wangsa Maju MP Wee Choo Keong, who has been quite vocal in taking up the complaints of the residents in the area, said it was about time City Hall acted.
"We hope City Hall takes the complaints of the residents seriously,"Wee told MAlay Mail in a telephone interview.
In the past City Hall has been issing ultimatums and warnings to the developer of Platinum Hill condominium that has been the causing residents in Taman Melati Utama to suffer sleepless nights.
Earlier, developer Platinum Victory has been ordered to carry out work only during the permitted hours from 8am to 6pm, Mondays to Saturdays. The last directive, before yesterday's stop work order, was issued at a meeting chaired by City Hall's Public Affairs and International Unit head, Anwar Mohd Zain in August.
The meeting was attended by representatives from Platinum Victory, Wee and a number of Taman Melati Utama residents who have benn demanding for an end to the noise pollution in their area.
"The developer said they needed to complete the project as soon as possible and that working longer hours was the only solution. But we can't be complying with developer's convenience because this is a matter of public interest,"he said.
Wee added that since project started on March 13, 2007, it had been a nuisance to residents, not only with the noise after working hours but also the waterlogged construction site that worries residents about Aedes mosquitoes breeding there.
"City Hall has been very 'develper-friendly' and it's about time it looked into the needs of the public,"he said.
If PVSB fails to comply with the latest City Hall directive, it can face action under Section 70 of the Road, Drainage and BUildings Act, 1970 and can be directed by a court to stop work immediately.
Should such action be taken, the company will be liable to a fine of up to Rm 50,000 or a jail term of up to three years or both.
By Malay Mail
After ednless complaints from residents in Taman Melati Utama in Setapak of noise pollution from a neighbouring condominium project, City Hall yesterday sealed off the entrace to the Platinum Hill projects and issued a stop-work order to the developer.
Malay Mail visited the area and found a City Hall notice dated Oct 19 on the sealed entrance directiong the developer to cease work with immediate effect.
Addressed to the developer, Platinum Victory Sdn Bhd, with a carbon copy to the CL Architect, the noticce from the City Hall Development Department signed by Zamizi Zakaria, the assistant building surveyor of the department, said the developer had breeched Section 70 (13)(d) of the Road, Drainage and Buildings Act 1974.
City Hall stated the notice was due to provisions under the Act which the developer had ignored, namely, carrying out beyond the permitted hours.
The notice warned that if the developer ignored the notice and continued constuction work it was liable for prosecution under Section 70 of said Act. Several construction workers who were staying on the site said the City Hall officers came inh the morning and sealed off the place.
"We noticed several vehicles at the entrance in the morining but as we were not working today (Oct 19) we did not know about ther matter until one of our supervisors came and told us that work has been temporarily suspended until further notice," said one of the workers.
Meanwhile, Wangsa Maju MP Wee Choo Keong, who has been quite vocal in taking up the complaints of the residents in the area, said it was about time City Hall acted.
"We hope City Hall takes the complaints of the residents seriously,"Wee told MAlay Mail in a telephone interview.
In the past City Hall has been issing ultimatums and warnings to the developer of Platinum Hill condominium that has been the causing residents in Taman Melati Utama to suffer sleepless nights.
Earlier, developer Platinum Victory has been ordered to carry out work only during the permitted hours from 8am to 6pm, Mondays to Saturdays. The last directive, before yesterday's stop work order, was issued at a meeting chaired by City Hall's Public Affairs and International Unit head, Anwar Mohd Zain in August.
The meeting was attended by representatives from Platinum Victory, Wee and a number of Taman Melati Utama residents who have benn demanding for an end to the noise pollution in their area.
"The developer said they needed to complete the project as soon as possible and that working longer hours was the only solution. But we can't be complying with developer's convenience because this is a matter of public interest,"he said.
Wee added that since project started on March 13, 2007, it had been a nuisance to residents, not only with the noise after working hours but also the waterlogged construction site that worries residents about Aedes mosquitoes breeding there.
"City Hall has been very 'develper-friendly' and it's about time it looked into the needs of the public,"he said.
If PVSB fails to comply with the latest City Hall directive, it can face action under Section 70 of the Road, Drainage and BUildings Act, 1970 and can be directed by a court to stop work immediately.
Should such action be taken, the company will be liable to a fine of up to Rm 50,000 or a jail term of up to three years or both.
By Malay Mail
BLand may put projects on hold
Property company Berjaya Land Bhd may put some of its projects on hold due to the current bearish market sentiment but is still confident of generating some RM350mil in property sales in its financial year ending April 30, 2009, said chief executive officer Datuk Francis Ng.
But the company’s huge projects in Vietnam would not be affected, Ng said, pointing out he expected the property slowdown in Vietnam to be short term.
“We will proceed with our Vietnam ventures because it is a long term investment,” he said, adding that the company’s four property development projects in Vietnam were worth about US$2.5bil in gross development value (GDV).
He said he expected the overseas markets to contribute 30% of the company’s revenue in the next three to four years.
Ng said the global financial crisis and rising cost of building materials had brought on a slowdown in the local property market and that the company might have to review and postpone some projects until the market recovered.
But he said other new launches would boost the company’s total property sales and that Berjaya Land was confident of achieving RM300mil to RM350mil in sales this financial year.
Berjaya Land is scheduled to launch its Berjaya Park project in Shah Alam and Vasana Link Bungalows development in Seputih Heights before the end of the year.
“We are currently in talks for en-bloc sales of the properties,” Ng said, adding that the GDV for its 25-unit Vasana Link project was RM175mil.
“We have sold about RM200mil worth of properties currently,” he said after a signing ceremony between Berjaya Golf Resort Bhd and Hanju Savana(M) Sdn Bhd yesterday.
Berjaya Land’s subsidiary Berjaya Golf Resort signed a sale and purchase agreement with Hanju I&D Co Ltd’s subsidiary Hanju Savana, for the sale of its entire two blocks of the 20-storey Covillea Bukit Jalil condominiums for a total of RM150mil.
Ng said Berjaya Land was not in a hurry to raise new funds as it had about RM1.8bil from previous fund-rasing exercises, which it would use for future expansion.
By The Star
But the company’s huge projects in Vietnam would not be affected, Ng said, pointing out he expected the property slowdown in Vietnam to be short term.
“We will proceed with our Vietnam ventures because it is a long term investment,” he said, adding that the company’s four property development projects in Vietnam were worth about US$2.5bil in gross development value (GDV).
He said he expected the overseas markets to contribute 30% of the company’s revenue in the next three to four years.
Ng said the global financial crisis and rising cost of building materials had brought on a slowdown in the local property market and that the company might have to review and postpone some projects until the market recovered.
But he said other new launches would boost the company’s total property sales and that Berjaya Land was confident of achieving RM300mil to RM350mil in sales this financial year.
Berjaya Land is scheduled to launch its Berjaya Park project in Shah Alam and Vasana Link Bungalows development in Seputih Heights before the end of the year.
“We are currently in talks for en-bloc sales of the properties,” Ng said, adding that the GDV for its 25-unit Vasana Link project was RM175mil.
“We have sold about RM200mil worth of properties currently,” he said after a signing ceremony between Berjaya Golf Resort Bhd and Hanju Savana(M) Sdn Bhd yesterday.
Berjaya Land’s subsidiary Berjaya Golf Resort signed a sale and purchase agreement with Hanju I&D Co Ltd’s subsidiary Hanju Savana, for the sale of its entire two blocks of the 20-storey Covillea Bukit Jalil condominiums for a total of RM150mil.
Ng said Berjaya Land was not in a hurry to raise new funds as it had about RM1.8bil from previous fund-rasing exercises, which it would use for future expansion.
By The Star
SunCity holding its own in facing challenges
SUNWAY City Bhd’s (SunCity) growing exposure in the international property market and expanding portfolio of quality property development and investment assets in Malaysia will help “cushion” the company from the current meltdown in the global financial markets
Its cash reserve of RM554mil as at financial year ended June 30 (FY08) is the highest among all the listed property companies in the country.
SunCity managing director for property development Ngian Siew Siong said the company’s strong cash position gave it a competitive advantage to “shop around” for viable distressed assets that might appear in the coming months as a result of the contagion effect of the global financial crisis on the local property market.
Ngeow Voon Yean showing the site for a new office project within the Sunway Integrated RResort City
“SunCity has the resilience to face the tough times ahead. The company’s stronger foray in the international property market and increasing number of high-end projects and high net worth customers will come in handy to weather a market crunch locally,” Ngian told StarBiz.
The company’s huge unbilled sales of RM1bil to be realised over FY09 and FY10 will also provide a buffer against a soft market.
“Overall the market, especially for high-end residences, is still holding steady. Having gone into the high-end residential sector in a big way, SunCity will be able to weather the tough times ahead quite well,” he said.
Best of both worlds
Concurring with Ngian, managing director for property investment Ngeow Voon Yean said: “SunCity has the best of both worlds - a good combination of property development and property investment assets. The ratio in terms of revenue contribution between development and investment activities to the company is more balanced now at 52:48 (FY08) compared with 60:40 in FY07.”
He said the optimum balance was achieved after a company-wide rejuvenating and asset enhancement strategy over the past eight years that resulted in a leaner SunCity.
SunCity currently has undeveloped landbank of 757.6ha with estimated gross development value (GDV) of RM12bil and more than 12 ongoing projects locally and abroad.
Its stable of high margin products and good take up of properties have contributed to a strong balance sheet.
For FY08, SunCity recorded a revenue of RM1.3bil versus RM1.1bil in FY07 while pre-tax profit was higher at RM638mil against RM296mil previously. (Profit in FY08 was boosted by revaluation net gains of RM130.8mil of Sunway Pyramid and Sunway Carnival shopping malls.)
Sales reached RM1bil in FY08, a big jump from M688mil recorded in FY07, while the margin of its property products is maintained at around 30%.
Going offshore
Ngian said although projects in Malaysia presently accounted for more than 90% of SunCity’s property sales, offshore projects were gaining importance and would make higher contributions going forward.
Within the next five years, overseas projects will contribute 30% to sales, with the majority from India and China.
“The huge population and growing middle-class in China and India have created a big demand for houses in those countries.
“We are also exploring opportunities in Vietnam and have received a number of offers for joint ventures with local partners,” Ngian said.
He said with its strong design and marketing capability, SunCity had the competitive advantage to add value to property projects in the various regional markets.
The company’s maiden property project in India, Sunway Opus Grand Residency in Hyderabad, undertaken jointly with Indian partner Opus Developers & Builders Private Ltd, will be launch in the first quarter of next year.
To venture into China, SunCity partnered Sunway Holdings Bhd’s subsidiary Sunway Mas Sdn Bhd and Shanghai Guanghao Real Estate Development Group Co Ltd for a mixed high-rise development in the central business district of Jiangyin New Harbour City in Jiangsu Province.
The ultra modern resort-style project will have 1,110 medium to high-end condominium units on over 6.8ha. The project will cost some one billion renminbi (RM473mil).
“We believe our maiden project in China will form a base to secure other future property projects in this high growth country in line with the company’s plans to expand into the regional property market,” Ngian said.
Quality investment assets
Besides having established a strong brand name as a reputable and innovative developer of medium to high-end projects, SunCity has also built up a strong property investment division with total assets worth close to RM4bil.
The assets range from office buildings to shopping complexes, university campuses, a medical college, hotels and theme park resorts.
Over the years revenue contribution from commercial properties has grown to RM630mil in FY08 against RM470mil in FY07.
“Despite the current market uncertainties, we are looking towards achieving a 15% revenue growth from our stable of hospitality, leisure and commercial properties going forward,” Ngeow said.
SunCity’s property investment division is also planning to broaden the export of its property management expertise to other regional countries.
Advanced negotiations are underway to manage hotels under the company’s Allson International brand name in China and Vietnam. Allson International clinched a contract to manage a hotel in Siem Reap, Cambodia early this year.
In China, SunCity’s retail property management team was involved in designing and managing a shopping centre in Chongqing, Szechuan province.
By The Star
Its cash reserve of RM554mil as at financial year ended June 30 (FY08) is the highest among all the listed property companies in the country.
SunCity managing director for property development Ngian Siew Siong said the company’s strong cash position gave it a competitive advantage to “shop around” for viable distressed assets that might appear in the coming months as a result of the contagion effect of the global financial crisis on the local property market.
Ngeow Voon Yean showing the site for a new office project within the Sunway Integrated RResort City
“SunCity has the resilience to face the tough times ahead. The company’s stronger foray in the international property market and increasing number of high-end projects and high net worth customers will come in handy to weather a market crunch locally,” Ngian told StarBiz.
The company’s huge unbilled sales of RM1bil to be realised over FY09 and FY10 will also provide a buffer against a soft market.
“Overall the market, especially for high-end residences, is still holding steady. Having gone into the high-end residential sector in a big way, SunCity will be able to weather the tough times ahead quite well,” he said.
Best of both worlds
Concurring with Ngian, managing director for property investment Ngeow Voon Yean said: “SunCity has the best of both worlds - a good combination of property development and property investment assets. The ratio in terms of revenue contribution between development and investment activities to the company is more balanced now at 52:48 (FY08) compared with 60:40 in FY07.”
He said the optimum balance was achieved after a company-wide rejuvenating and asset enhancement strategy over the past eight years that resulted in a leaner SunCity.
SunCity currently has undeveloped landbank of 757.6ha with estimated gross development value (GDV) of RM12bil and more than 12 ongoing projects locally and abroad.
Its stable of high margin products and good take up of properties have contributed to a strong balance sheet.
For FY08, SunCity recorded a revenue of RM1.3bil versus RM1.1bil in FY07 while pre-tax profit was higher at RM638mil against RM296mil previously. (Profit in FY08 was boosted by revaluation net gains of RM130.8mil of Sunway Pyramid and Sunway Carnival shopping malls.)
Sales reached RM1bil in FY08, a big jump from M688mil recorded in FY07, while the margin of its property products is maintained at around 30%.
Going offshore
Ngian said although projects in Malaysia presently accounted for more than 90% of SunCity’s property sales, offshore projects were gaining importance and would make higher contributions going forward.
Within the next five years, overseas projects will contribute 30% to sales, with the majority from India and China.
“The huge population and growing middle-class in China and India have created a big demand for houses in those countries.
“We are also exploring opportunities in Vietnam and have received a number of offers for joint ventures with local partners,” Ngian said.
He said with its strong design and marketing capability, SunCity had the competitive advantage to add value to property projects in the various regional markets.
The company’s maiden property project in India, Sunway Opus Grand Residency in Hyderabad, undertaken jointly with Indian partner Opus Developers & Builders Private Ltd, will be launch in the first quarter of next year.
To venture into China, SunCity partnered Sunway Holdings Bhd’s subsidiary Sunway Mas Sdn Bhd and Shanghai Guanghao Real Estate Development Group Co Ltd for a mixed high-rise development in the central business district of Jiangyin New Harbour City in Jiangsu Province.
The ultra modern resort-style project will have 1,110 medium to high-end condominium units on over 6.8ha. The project will cost some one billion renminbi (RM473mil).
“We believe our maiden project in China will form a base to secure other future property projects in this high growth country in line with the company’s plans to expand into the regional property market,” Ngian said.
Quality investment assets
Besides having established a strong brand name as a reputable and innovative developer of medium to high-end projects, SunCity has also built up a strong property investment division with total assets worth close to RM4bil.
The assets range from office buildings to shopping complexes, university campuses, a medical college, hotels and theme park resorts.
Over the years revenue contribution from commercial properties has grown to RM630mil in FY08 against RM470mil in FY07.
“Despite the current market uncertainties, we are looking towards achieving a 15% revenue growth from our stable of hospitality, leisure and commercial properties going forward,” Ngeow said.
SunCity’s property investment division is also planning to broaden the export of its property management expertise to other regional countries.
Advanced negotiations are underway to manage hotels under the company’s Allson International brand name in China and Vietnam. Allson International clinched a contract to manage a hotel in Siem Reap, Cambodia early this year.
In China, SunCity’s retail property management team was involved in designing and managing a shopping centre in Chongqing, Szechuan province.
By The Star
October 19, 2008
Metropolis lifestyle in the offing
SUNWAY South Quay, Sunway City Bhd’s signature lakeside lifestyle development, is promoting a thriving international metropolis in Sunway Integrated Resort City.
Targeted at the growing expatriate and foreign investor market, the RM4.2bil project on 71.2ha will have 4,000 high-end villas, condominiums and retail shops.
To be undertaken in 15 phases over eight years, the gated and guarded enclave is SunCity’s masterpiece, one that will rival the Mont’Kiara international zone.
“Our selling point is the 11.2ha lake that comes complete with a 70-foot Sunseeker luxury yacht that will be rented to residents to host events,” managing director for property development Ngian Siew Siong said.
South Quay has attracted a growing Korean community after a South Korean company, Luxury Court Sdn Bhd, made an en-bloc purchase of 249 condominiums in Sunway South Quay last December.
The residences with average built-up of 1,701 sq ft were priced at an average RM400 per sq ft for a total gross development value (GDV) of RM171mil. The project will be completed end-2010.
Luxury Court is a joint venture between CI Korea Ltd and Daol Trust & Fund Company Ltd, South Korea’s first specialised real estate fund investment and management company.
The same buyers are also keen to make a second en-bloc purchase for another 242 condominiums. Negotiations are currently underway and the residences with average built-up of 1,800 sq ft will be able to fetch a GDV of RM200mil or RM450 per sq ft (psf).
These residences will be re-sold to Korean buyers who are mostly professionals from financial institutions and entrepreneurs.
Meanwhile, interest for the 77 BayRocks Garden Waterfront Villas under phase one of Sunway South Quay has been quite good. The 2- and 2 1/2-storey villas are priced from RM4.5mil to RM7.7mil, or at an average RM1,000 psf.
Since the project’s soft launch in June, close to 50% of the units have been sold for a total value of RM200mil.
According to property consultant Regroup Associates executive chairman Christopher Boyd, the South Quay project reaffirmed that lakeside living in an urban community was no longer an impossible dream.
Boyd said South Quay symbolised all that was good about lakeside living.
“The development embraces the best of nature and tranquillity to create an urban sanctuary,” he added.
The expansive lake offers a tropical theme with calming and soothing overtones.
“South Quay is a pioneering showpiece of a well-planned refuge for urban dwellers with appreciation of nature and a taste for luxury.
“The residents will be able to pursue the usual recreational activities such as jogging and picnics on the landscaped lakeside while the lake itself offers a view most would only dream of,” Boyd said.
By The Star
Targeted at the growing expatriate and foreign investor market, the RM4.2bil project on 71.2ha will have 4,000 high-end villas, condominiums and retail shops.
To be undertaken in 15 phases over eight years, the gated and guarded enclave is SunCity’s masterpiece, one that will rival the Mont’Kiara international zone.
“Our selling point is the 11.2ha lake that comes complete with a 70-foot Sunseeker luxury yacht that will be rented to residents to host events,” managing director for property development Ngian Siew Siong said.
South Quay has attracted a growing Korean community after a South Korean company, Luxury Court Sdn Bhd, made an en-bloc purchase of 249 condominiums in Sunway South Quay last December.
The residences with average built-up of 1,701 sq ft were priced at an average RM400 per sq ft for a total gross development value (GDV) of RM171mil. The project will be completed end-2010.
Luxury Court is a joint venture between CI Korea Ltd and Daol Trust & Fund Company Ltd, South Korea’s first specialised real estate fund investment and management company.
The same buyers are also keen to make a second en-bloc purchase for another 242 condominiums. Negotiations are currently underway and the residences with average built-up of 1,800 sq ft will be able to fetch a GDV of RM200mil or RM450 per sq ft (psf).
These residences will be re-sold to Korean buyers who are mostly professionals from financial institutions and entrepreneurs.
Meanwhile, interest for the 77 BayRocks Garden Waterfront Villas under phase one of Sunway South Quay has been quite good. The 2- and 2 1/2-storey villas are priced from RM4.5mil to RM7.7mil, or at an average RM1,000 psf.
Since the project’s soft launch in June, close to 50% of the units have been sold for a total value of RM200mil.
According to property consultant Regroup Associates executive chairman Christopher Boyd, the South Quay project reaffirmed that lakeside living in an urban community was no longer an impossible dream.
Boyd said South Quay symbolised all that was good about lakeside living.
“The development embraces the best of nature and tranquillity to create an urban sanctuary,” he added.
The expansive lake offers a tropical theme with calming and soothing overtones.
“South Quay is a pioneering showpiece of a well-planned refuge for urban dwellers with appreciation of nature and a taste for luxury.
“The residents will be able to pursue the usual recreational activities such as jogging and picnics on the landscaped lakeside while the lake itself offers a view most would only dream of,” Boyd said.
By The Star
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