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
October 30, 2008
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
October 18, 2008
IOI unit to re-schedule launch of condo project
IOI Properties (S) Pte Ltd (IOIP), a wholly-owned unit of IOI Properties Bhd, is looking to launch its maiden upmarket condominium project in Singapore’s Sentosa Cove next year when market sentiment in the city-state improves.
“We have rescheduled the launch of Seascape Collection to next year to coincide with the completion of the Integrated Resort (IR) project on Sentosa island, which would kick-start commercial and tourism activities in Sentosa Cove, and to be in sync with the expected economic rebound,” IOI Properties director Datuk David Tan told StarBiz yesterday.
The relevant approvals for the project have been obtained and the project was initially planned for launch in the middle of this year but was delayed when Singapore’s residental property market softened.
Work on the show unit for Seascape Collection is in progress.
The 3.6-acre Seascape project is a 50:50 joint venture between IOI Properties and its Singapore partner, Ho Bee Investment Ltd.
It will comprise two eight-storey condominium blocks of 151 residences of various sizes. The tentative prices of the residences range from S$2,500 to S$2,800 per sq ft.
Meanwhile, the planning approval for the company’s second project in Sentosa Cove, called Pinnacle Collection, has been granted and the final building plan approval is expected shortly.
The project will be undertaken by Pinnacle (Sentosa) Pte Ltd, which is 65%-owned by IOI Properties and 35% by Ho Bee.
In January, the company successfully tendered for a 5.3-acre land parcel for S$1.1bil.
The 99-year leasehold land parcel is the final piece of condominium land to be launched by Sentosa Cove.
The site will have seven 18-storey blocks and one 20-storey block of luxurious condominiums. The maximum number of units allowed in the development is 357, while the maximum permissible gross floor area is 602,359 sq ft.
It is one of the two condominium parcels flanking the entrance of the marina leading into Sentosa Cove.
Tan said Singapore’s property market was expected to continue its uptrend when world class attractions, such as the IRs, were in place.
“We believe the prospects are good and are confident on the project sales. Besides the fact that Sentosa Cove is essentially a Singapore government-promoted project with world-class infrastructure, the impact of the two IR projects in Sentosa island and Marina Bay will be felt soon.
“A substantial portion of the target buyers are high net-worth individuals from Malaysia/Singapore, Indonesia, India, China and Middle Easterns who are keen to be a part of the most sought-after address in the world,” he said.
Due to land scarcity, the supply of residential properties in Singapore, including Sentosa Cove, is very limited.
“Our projects are the last two remaining and most strategic condominium sites at Sentosa Cove. Due to its exclusivity, prices of luxurious homes in Sentosa Cove are holding well,” Tan added.
By The Star
“We have rescheduled the launch of Seascape Collection to next year to coincide with the completion of the Integrated Resort (IR) project on Sentosa island, which would kick-start commercial and tourism activities in Sentosa Cove, and to be in sync with the expected economic rebound,” IOI Properties director Datuk David Tan told StarBiz yesterday.
The relevant approvals for the project have been obtained and the project was initially planned for launch in the middle of this year but was delayed when Singapore’s residental property market softened.
Work on the show unit for Seascape Collection is in progress.
The 3.6-acre Seascape project is a 50:50 joint venture between IOI Properties and its Singapore partner, Ho Bee Investment Ltd.
It will comprise two eight-storey condominium blocks of 151 residences of various sizes. The tentative prices of the residences range from S$2,500 to S$2,800 per sq ft.
Meanwhile, the planning approval for the company’s second project in Sentosa Cove, called Pinnacle Collection, has been granted and the final building plan approval is expected shortly.
The project will be undertaken by Pinnacle (Sentosa) Pte Ltd, which is 65%-owned by IOI Properties and 35% by Ho Bee.
In January, the company successfully tendered for a 5.3-acre land parcel for S$1.1bil.
The 99-year leasehold land parcel is the final piece of condominium land to be launched by Sentosa Cove.
The site will have seven 18-storey blocks and one 20-storey block of luxurious condominiums. The maximum number of units allowed in the development is 357, while the maximum permissible gross floor area is 602,359 sq ft.
It is one of the two condominium parcels flanking the entrance of the marina leading into Sentosa Cove.
Tan said Singapore’s property market was expected to continue its uptrend when world class attractions, such as the IRs, were in place.
“We believe the prospects are good and are confident on the project sales. Besides the fact that Sentosa Cove is essentially a Singapore government-promoted project with world-class infrastructure, the impact of the two IR projects in Sentosa island and Marina Bay will be felt soon.
“A substantial portion of the target buyers are high net-worth individuals from Malaysia/Singapore, Indonesia, India, China and Middle Easterns who are keen to be a part of the most sought-after address in the world,” he said.
Due to land scarcity, the supply of residential properties in Singapore, including Sentosa Cove, is very limited.
“Our projects are the last two remaining and most strategic condominium sites at Sentosa Cove. Due to its exclusivity, prices of luxurious homes in Sentosa Cove are holding well,” Tan added.
By The Star
October 15, 2008
Mont’ Kiara stamps its (green) mark
This might prove to be a worthy bit of trivia in years to come: When asked what is the first residential project in the country to be conferred a "green" rating, you’ll know the answer – Sunrise Bhd’s 11 Mont’ Kiara, a five-tower luxury highrise situated between Kuala Lumpur and Petaling Jaya, where many expatriates and wealthy locals have chosen to call home.
Recently, the Building and Construction Authority (BCA) of Singapore gave its provisional Green Mark Award to it following an assessment that considered aspects such as its low impact on the environment, good air quality, use of innovative technology and effort to reduce water and energy expenditures.
Sunrise said 11 Mont’ Kiara has been designed to save up to seven million kilowatt hours of electricity a year through the inclusion of efficient mechanical and electrical equipment as well as use of design elements that provide for solar insulation.
The other green features of the project include landscaping with 150,000 plants resulting in its high green plot ratio; naturally ventilated car parks; internal designs that promote natural lighting and ventilation; and a shuttle service to reduce the need by residents to use their own transport to head to the area’s commercial centres.
Taking shape on 5.305 acres of land along Jalan Kiara 1, the project has been planned to accommodate 348 units with sizes ranging from 2,707sq ft to 4,695sq ft.
Construction is currently underway and completion is slated for 2011.
A part of the Sunrise Mont’ Kiara Integrated Global Village, 11 Mont’ Kiara will be accessible via the North Klang Valley Expressway, Sprint Highway and the Duta-Ulu Klang Expressway.
It is the second project in the country to received BCA’s Green Mark Award, the first being the GTower commercial
By New Straits Times
Recently, the Building and Construction Authority (BCA) of Singapore gave its provisional Green Mark Award to it following an assessment that considered aspects such as its low impact on the environment, good air quality, use of innovative technology and effort to reduce water and energy expenditures.
Sunrise said 11 Mont’ Kiara has been designed to save up to seven million kilowatt hours of electricity a year through the inclusion of efficient mechanical and electrical equipment as well as use of design elements that provide for solar insulation.
The other green features of the project include landscaping with 150,000 plants resulting in its high green plot ratio; naturally ventilated car parks; internal designs that promote natural lighting and ventilation; and a shuttle service to reduce the need by residents to use their own transport to head to the area’s commercial centres.
Taking shape on 5.305 acres of land along Jalan Kiara 1, the project has been planned to accommodate 348 units with sizes ranging from 2,707sq ft to 4,695sq ft.
Construction is currently underway and completion is slated for 2011.
A part of the Sunrise Mont’ Kiara Integrated Global Village, 11 Mont’ Kiara will be accessible via the North Klang Valley Expressway, Sprint Highway and the Duta-Ulu Klang Expressway.
It is the second project in the country to received BCA’s Green Mark Award, the first being the GTower commercial
By New Straits Times
October 14, 2008
Goldmount seeks more land in Iskandar Malaysia
Goldmount Resources Sdn Bhd plans to look for more land within Iskandar Malaysia for its future property projects in the growth corridor.
Project manager Alex Cheong said the property outlook in Iskandar Malaysia was good as the influx of local and foreign investors would create demand for houses.
He said the presence of more developers from outside Johor, especially the Klang Valley, within Iskandar Malaysia also reflected their confidence in the corridor.
“On that note, we also want to take advantage of the good prospects in the property market within Iskandar Malaysia,’’ he told StarBiz.
Cheong said unlike the Klang Valley, where getting land for property development was becoming tougher, it was not so prevalent in Iskandar Malaysia.
The company was hoping to find land within the Nusajaya area as this was slated as the key growth centre in Iskandar Malaysia, Cheong said.
He added that the value of land and properties within Iskandar Malaysia had also appreciated since the economic growth corridor was launched in November 2006.
Iskandar Malaysia spans 2,216.3 sq km within the southern-most part of Johor covering Johor Baru, Senai-Kulai, Pasir Gudang-Tanjung Langsat and Pontian-Gelang Patah.
Cheong said more high-end properties, including those with a price tag of RM1mil or more per unit which was unheard before, were also launched as buyers in south Johor were ready to pay the price.
He said more buyers were going for gated and guarded properties as security was their main concern.
The Shah Alam-based company is currently undertaking its maiden project €“ Puncak Lagenda at Taman Bukit Mewah €“ in Johor with a gross development value of RM54mil.
Phase one of the project comprises 68 double-storey terrace houses, priced from RM338,000 each, and eight semi-detached houses at RM518,000 each.
Phase two will consist of 31 double-storey shop offices with three different floor designs with a price tag of at least RM488,000 each.
By The Star
Project manager Alex Cheong said the property outlook in Iskandar Malaysia was good as the influx of local and foreign investors would create demand for houses.
He said the presence of more developers from outside Johor, especially the Klang Valley, within Iskandar Malaysia also reflected their confidence in the corridor.
“On that note, we also want to take advantage of the good prospects in the property market within Iskandar Malaysia,’’ he told StarBiz.
Cheong said unlike the Klang Valley, where getting land for property development was becoming tougher, it was not so prevalent in Iskandar Malaysia.
The company was hoping to find land within the Nusajaya area as this was slated as the key growth centre in Iskandar Malaysia, Cheong said.
He added that the value of land and properties within Iskandar Malaysia had also appreciated since the economic growth corridor was launched in November 2006.
Iskandar Malaysia spans 2,216.3 sq km within the southern-most part of Johor covering Johor Baru, Senai-Kulai, Pasir Gudang-Tanjung Langsat and Pontian-Gelang Patah.
Cheong said more high-end properties, including those with a price tag of RM1mil or more per unit which was unheard before, were also launched as buyers in south Johor were ready to pay the price.
He said more buyers were going for gated and guarded properties as security was their main concern.
The Shah Alam-based company is currently undertaking its maiden project €“ Puncak Lagenda at Taman Bukit Mewah €“ in Johor with a gross development value of RM54mil.
Phase one of the project comprises 68 double-storey terrace houses, priced from RM338,000 each, and eight semi-detached houses at RM518,000 each.
Phase two will consist of 31 double-storey shop offices with three different floor designs with a price tag of at least RM488,000 each.
By The Star
IOI Corp to postpone Sentosa Cove launch
IOI Corp Bhd is postponing the launch of its Sentosa Cove projects as the Singapore residential property market is undergoing a slowdown, a company official said yesterday.
He said due to the current situation, it would be better to wait for the market to recover.
The official was commenting on a Citigroup Research report yesterday which stated that the launch had been postponed.
The research house said the previous guidance was for Sentosa Seaview to be launched by this month and The Pinnacle Collection by April next year.
The land cost was S$1,364 (RM3,265) per sq ft per plot ratio for the Sentosa Cove project while the land cost was S$1,822 per sq ft per plot ratio for The Pinnacle Collection.
Citigroup Research said it was removing both projects from its immediate three-year forecasts.
Domestically, it was assuming that the Dengkil land project, with an estimated gross development value of RM2bil, would be postponed to its financial year ending June 30, 2010.
By The Star
He said due to the current situation, it would be better to wait for the market to recover.
The official was commenting on a Citigroup Research report yesterday which stated that the launch had been postponed.
The research house said the previous guidance was for Sentosa Seaview to be launched by this month and The Pinnacle Collection by April next year.
The land cost was S$1,364 (RM3,265) per sq ft per plot ratio for the Sentosa Cove project while the land cost was S$1,822 per sq ft per plot ratio for The Pinnacle Collection.
Citigroup Research said it was removing both projects from its immediate three-year forecasts.
Domestically, it was assuming that the Dengkil land project, with an estimated gross development value of RM2bil, would be postponed to its financial year ending June 30, 2010.
By The Star
October 12, 2008
RM100mil Mesra Mall opens its doors in Kertih
MESRA Mall, a RM100mil ultra-modern shopping complex, has opened its doors to shoppers in the Kerteh petroleum town.
Built on a 12ha site, it promises to be a new landmark for shoppers and tourists coming to Terengganu.
With Suria KLCC Sdn Bhd managing the operations, the complex is developed by KLCC (Holdings) Sdn Bhd through its two subsidiaries €“ Metro Kemasik Sdn Bhd and KLCC Projek Sdn Bhd.
Kumpulan KLCC (Holdings) Sdn Bhd chief executive officer Hashim Wahir said with the opening of the complex, people around Kemasik, Paka, Kerteh, Kijal and Chukai would no longer need to go to Kuantan or Kuala Terengganu to buy basic needs.
“Mesra Mall is among our efforts to provide the opportunity for the people here to enjoy facilities similar to that available in big towns.
“Moreover, with higher fuel prices, the people need not go far to buy their essentials and branded items as these goods are available at the mall,” he added.
Hashim said this after the complex opening by state executive councillor for rural development, entrepreneurs and cooperatives, Datuk Mohamed Awang Tera, who represented Terengganu Menteri Besar Datuk Ahmad Said.
Hashim hopes the complex would serve as a catalyst for commercial development in the Kemaman district and in Terengganu, adding that it had provided jobs for about 500 locals.
Earlier, Mohamed Awang, in his speech, said Mesra Mall would provide business opportunities for the locals to boost their income.
“The shopping centre will not harm businesses of the small and medium-scale entrepreneurs as they have been provided with separate trading areas to sell their goods,” he added.
By The Star
Built on a 12ha site, it promises to be a new landmark for shoppers and tourists coming to Terengganu.
With Suria KLCC Sdn Bhd managing the operations, the complex is developed by KLCC (Holdings) Sdn Bhd through its two subsidiaries €“ Metro Kemasik Sdn Bhd and KLCC Projek Sdn Bhd.
Kumpulan KLCC (Holdings) Sdn Bhd chief executive officer Hashim Wahir said with the opening of the complex, people around Kemasik, Paka, Kerteh, Kijal and Chukai would no longer need to go to Kuantan or Kuala Terengganu to buy basic needs.
“Mesra Mall is among our efforts to provide the opportunity for the people here to enjoy facilities similar to that available in big towns.
“Moreover, with higher fuel prices, the people need not go far to buy their essentials and branded items as these goods are available at the mall,” he added.
Hashim said this after the complex opening by state executive councillor for rural development, entrepreneurs and cooperatives, Datuk Mohamed Awang Tera, who represented Terengganu Menteri Besar Datuk Ahmad Said.
Hashim hopes the complex would serve as a catalyst for commercial development in the Kemaman district and in Terengganu, adding that it had provided jobs for about 500 locals.
Earlier, Mohamed Awang, in his speech, said Mesra Mall would provide business opportunities for the locals to boost their income.
“The shopping centre will not harm businesses of the small and medium-scale entrepreneurs as they have been provided with separate trading areas to sell their goods,” he added.
By The Star
KSL to sell latest project overseas
KSL Holdings Bhd is targeting the foreign market for its latest project, D’Esplanade Residence @ KSL City.
Executive director Ku Hwa Seng said for a start it would appoint an international property agent based in Singapore to attract residents and expatriates in the republic.
“We are also targeting Malaysian professionals working and residing in Singapore,” Ku told journalists yesterday during a sneak preview of the project which will be officially launched this weekend.
D’Esplanade Residence will comprise a four-storey retail podium block, two 20-storey hotel blocks with 1,000 rooms, and two 33-storey apartment towers with 346 units when fully completed in about three years.
The 33-storey Glass Tower I apartment block will comprise 242 units with built-up areas of 1,000 to 10,000 sq ft.
The price ranges from RM500,000 to RM10mil for a penthouse unit.
“Pricing for the Glass Tower I units should be attractive to Singaporeans as a similar unit there could easily cost S$1mil to S$3mil,” said Ku.
The RM500mil KSL City is located within the matured Century Gardens, opposite the Holiday Plaza shopping complex and near Jalan Datuk Suleiman.
It is about 2km from the Johor Baru central business district and the new Johor Baru Customs, Immigration and Quarantine complex.
Glass Tower II, with 104 units, would be launched in six months and the price of each unit would start from RM1mil, Ku said, adding that after Singapore, the company would promote the project to investors in Dubai and Hong Kong.
By The Star
Executive director Ku Hwa Seng said for a start it would appoint an international property agent based in Singapore to attract residents and expatriates in the republic.
“We are also targeting Malaysian professionals working and residing in Singapore,” Ku told journalists yesterday during a sneak preview of the project which will be officially launched this weekend.
D’Esplanade Residence will comprise a four-storey retail podium block, two 20-storey hotel blocks with 1,000 rooms, and two 33-storey apartment towers with 346 units when fully completed in about three years.
The 33-storey Glass Tower I apartment block will comprise 242 units with built-up areas of 1,000 to 10,000 sq ft.
The price ranges from RM500,000 to RM10mil for a penthouse unit.
“Pricing for the Glass Tower I units should be attractive to Singaporeans as a similar unit there could easily cost S$1mil to S$3mil,” said Ku.
The RM500mil KSL City is located within the matured Century Gardens, opposite the Holiday Plaza shopping complex and near Jalan Datuk Suleiman.
It is about 2km from the Johor Baru central business district and the new Johor Baru Customs, Immigration and Quarantine complex.
Glass Tower II, with 104 units, would be launched in six months and the price of each unit would start from RM1mil, Ku said, adding that after Singapore, the company would promote the project to investors in Dubai and Hong Kong.
By The Star
October 8, 2008
Damansara 21 back on track before year’s end
Despite the hurdles faced by the muchdebated Damansara 21 project in Medan Damansara, Kuala Lumpur, work on the hillside bungalow scheme could resume before the end of the year.
According to legal commentators, although its developer, SDB Properties Sdn Bhd (SDBP), has been issued a stop-work order and slapped with a RM100,000 fine for failing to comply with safety standards, there are no legal grounds to prevent it from continuing with the project once it has satisfied the directives given by KL City Hall.
"The developer will only have to provide the outstanding documents, if any, and satisfy City Hall’s directives to rectify existing issues before being able to continue work," said lawyer K. Shanmuga.
Sources from SDBP confirmed that the process is underway.
Damansara 21, which commenced in December last year, is a high-end scheme that will feature 21 luxury bungalows priced indicatively between RM10 million and RM15 million.
Although pre-construction work has commenced, the developer has not begun marketing yet.
"The fact is, if the project has already received approval from the relevant authorities and the necessary documents are in place, it will be difficult to stop the development because it is on private land," Shanmuga said in reference to calls by Medan Damansara residents to scrap the development.
SDBP is also hotly contesting claims that it did not receive proper approvals. "We were given the development and advertising licence before construction began, so this is hardly the situation," a company spokesperson said.
Another lawyer who wished to remain anonymous said, "If this is the case, then the only issue remaining is the improvement of the safety standards at the site and the construction of a proper drainage system, which are the two infringements they were fined for.
"This isn’t difficult to achieve, and I’m sure the developer will happily implement them in order to continue work. "In fact, leaving it (the project) in its current state will probably cause more harm to the surrounding environment and landscape, so I think the developer has a duty to now complete it."
By New Strait Times
According to legal commentators, although its developer, SDB Properties Sdn Bhd (SDBP), has been issued a stop-work order and slapped with a RM100,000 fine for failing to comply with safety standards, there are no legal grounds to prevent it from continuing with the project once it has satisfied the directives given by KL City Hall.
"The developer will only have to provide the outstanding documents, if any, and satisfy City Hall’s directives to rectify existing issues before being able to continue work," said lawyer K. Shanmuga.
Sources from SDBP confirmed that the process is underway.
Damansara 21, which commenced in December last year, is a high-end scheme that will feature 21 luxury bungalows priced indicatively between RM10 million and RM15 million.
Although pre-construction work has commenced, the developer has not begun marketing yet.
"The fact is, if the project has already received approval from the relevant authorities and the necessary documents are in place, it will be difficult to stop the development because it is on private land," Shanmuga said in reference to calls by Medan Damansara residents to scrap the development.
SDBP is also hotly contesting claims that it did not receive proper approvals. "We were given the development and advertising licence before construction began, so this is hardly the situation," a company spokesperson said.
Another lawyer who wished to remain anonymous said, "If this is the case, then the only issue remaining is the improvement of the safety standards at the site and the construction of a proper drainage system, which are the two infringements they were fined for.
"This isn’t difficult to achieve, and I’m sure the developer will happily implement them in order to continue work. "In fact, leaving it (the project) in its current state will probably cause more harm to the surrounding environment and landscape, so I think the developer has a duty to now complete it."
By New Strait Times
October 7, 2008
NAZA TTDI targets Mideast market
NAZA TTDI Sdn Bhd is actively promoting its property to the Middle East market following a “high level” of interest received.
Marketing and sales director SM Faliq SM Nasimuddin said in a statement many high profile investors from the Middle East had shown keen interest in the company’s projects particularly in its “jewel in the crown” RM3.5bil Platinum Park, comprising seven iconic towers of offices, service apartments, retail units and upmarket condominiums, in the Kuala Lumpur City Centre (KLCC).
SM Faliq said Middle Eastern investors were very astute when it came to choosing a good property.
“In recent years they have shown keen interest in Malaysian properties particularly those in prime locations where they see potential for good capital appreciation.
“Also, luxury properties in KLCC area are comparatively much cheaper than those in downtown Singapore, Hong Kong and Dubai,” he added.
More than 400 exhibitors from around the world are participating in the event at the Dubai International Exhibition Centre.
By The Star
Marketing and sales director SM Faliq SM Nasimuddin said in a statement many high profile investors from the Middle East had shown keen interest in the company’s projects particularly in its “jewel in the crown” RM3.5bil Platinum Park, comprising seven iconic towers of offices, service apartments, retail units and upmarket condominiums, in the Kuala Lumpur City Centre (KLCC).
SM Faliq said Middle Eastern investors were very astute when it came to choosing a good property.
“In recent years they have shown keen interest in Malaysian properties particularly those in prime locations where they see potential for good capital appreciation.
“Also, luxury properties in KLCC area are comparatively much cheaper than those in downtown Singapore, Hong Kong and Dubai,” he added.
More than 400 exhibitors from around the world are participating in the event at the Dubai International Exhibition Centre.
By The Star
PHBB to buy land in Iskandar
It plans to develop the 30-acre Medini plot in phases
Pelaburan Hartanah Bumiputera Bhd (PHBB) is in final negotiations to purchase 30 acres in the proposed financial district of Medini in Iskandar Malaysia, the state investment agency said yesterday.
“We have identified the size of the land we want - 30 acres - that we will develop in phases,” PHBB managing director Kamalul Arifin Othman told the media at Cityscape Dubai after an earlier announcement by Millenium Development International, the lead developer of the Medini financial district and one of the Middle Eastern development partners of Khazanah Nasional Bhd’s Iskandar Investment Bhd (IIB).
“We intend to be (the) first mover in the financial district,” he added.
The land acquisition will be made through a joint venture company in which PHBB will own 60% and IIB 40%.
“We have the resources to undertake the development. We had received RM2bil in seed capital from the federal government,” Kamalul said, adding that PHBB was talking to established companies to take up space in the Medini financial district.
Millenium vice chairman Oussama Kabbani said in a speech that Iskandar financial district was in the right location and right market.
The price of land there was just 10% that in Singapore even though it was just 20 minutes’ drive from the island republic, he noted.
Global Capital, the consortium that includes Millenium and IIB, would invest US$1bil to develop and sell the sites acquired within Medini, Iskandar Malaysia.
The development value in the financial district alone would exceed US$4.5bil, Oussama said, adding that Millenium was in discussion with prospective investors from the Gulf region to invest in Iskandar Malaysia.
IIB managing director Arlida Ariff said the government offered special incentives for companies to move into specific clusters in Iskandar Malaysia.
These include a 10-year tax holiday, 100% foreign ownership and flexibility in hiring foreign knowledge workers.
Companies in the Fortune 500 list and others that might want to expand from Hong Kong and Singapore were being approached by IIB as prospective tenants and investors, she added.
PHBB is a wholly-owned subsidiary of Yayasan Amanah Hartanah Bumiputra.
Formed two years ago, it has invested in 300 acres of commercial land in Kuala Lumpur and Penang, including the headquarters of Bumiputra-Commerce Holdings Bhd and the transport hub at Butterworth.
PHBB invests primarily in Grade A commercial properties and its aim is to eventually place them in a real estate investment trust.
By The Star
Pelaburan Hartanah Bumiputera Bhd (PHBB) is in final negotiations to purchase 30 acres in the proposed financial district of Medini in Iskandar Malaysia, the state investment agency said yesterday.
“We have identified the size of the land we want - 30 acres - that we will develop in phases,” PHBB managing director Kamalul Arifin Othman told the media at Cityscape Dubai after an earlier announcement by Millenium Development International, the lead developer of the Medini financial district and one of the Middle Eastern development partners of Khazanah Nasional Bhd’s Iskandar Investment Bhd (IIB).
“We intend to be (the) first mover in the financial district,” he added.
The land acquisition will be made through a joint venture company in which PHBB will own 60% and IIB 40%.
“We have the resources to undertake the development. We had received RM2bil in seed capital from the federal government,” Kamalul said, adding that PHBB was talking to established companies to take up space in the Medini financial district.
Millenium vice chairman Oussama Kabbani said in a speech that Iskandar financial district was in the right location and right market.
The price of land there was just 10% that in Singapore even though it was just 20 minutes’ drive from the island republic, he noted.
Global Capital, the consortium that includes Millenium and IIB, would invest US$1bil to develop and sell the sites acquired within Medini, Iskandar Malaysia.
The development value in the financial district alone would exceed US$4.5bil, Oussama said, adding that Millenium was in discussion with prospective investors from the Gulf region to invest in Iskandar Malaysia.
IIB managing director Arlida Ariff said the government offered special incentives for companies to move into specific clusters in Iskandar Malaysia.
These include a 10-year tax holiday, 100% foreign ownership and flexibility in hiring foreign knowledge workers.
Companies in the Fortune 500 list and others that might want to expand from Hong Kong and Singapore were being approached by IIB as prospective tenants and investors, she added.
PHBB is a wholly-owned subsidiary of Yayasan Amanah Hartanah Bumiputra.
Formed two years ago, it has invested in 300 acres of commercial land in Kuala Lumpur and Penang, including the headquarters of Bumiputra-Commerce Holdings Bhd and the transport hub at Butterworth.
PHBB invests primarily in Grade A commercial properties and its aim is to eventually place them in a real estate investment trust.
By The Star
October 6, 2008
Impact of global economic turmoil on shopping centres
THE Council of Asian and Shopping Centre (CASC) Conference 2008 to be held in Petaling Jaya from Oct 29 to 31 will focus on the current global economic turmoil and its impact on Asian shopping centres.
Malaysian Association for Shopping and Highrise Complex Management (PPK) president Joyce Yap said this year’s conference was important as it would focus on issues such as the impact of inflation, cost management, environmental issues, human resources and political instability faced by Malaysia and the region.
“Speakers will compare the impact of this coming ‘recession’ to the previous two and whether the solutions used would be applicable. It will take into consideration critical issues faced by shopping centres and retailers to plan for survival strategies during this difficult time,” Yap said.
There will be prominent speakers from Malaysia, China, India, the Philippines, Hong Kong, Thailand, Singapore and Indonesia.
CASC, established in 2004, is aimed at regional co-operation and setting future directions for shopping centre management in the region. Council members include the shopping centre associations of founding countries such as Malaysia, Singapore and Indonesia together with Hong Kong, China and the Philippines.
Yap, who is the leasing and marketing director of Pavilion KL, said Malaysia still did not have enough quality shopping centres.
“We are not as competitive and aggressive as some of our neighbouring countries. Look at Thailand, they have recovered from economic and other problems quite fast and this is due to the concerted efforts by their government and the private sector,” she said.
On the current US financial meltdown, Yap believes it would not be as bad an impact as the high inflation, political uncertainty and branding issue faced by Malaysia and the region.
“Shopping is a way of life in Asia. Shoppers are wiser today and retailers need to pamper their customers with added value and incentives. Consumers must feel that they have made a worthy purchase that has also alleviated their perceived status,” she said.
Joyce added that there were many measures that landlords and tenants could take to boost sales.
For instance, landlords could review space usage; promotions, downsizing and energy management while tenants could consolidate, re-invent their merchandise, and conduct direct sales campaigns and franchising.
Where necessary, landlords may have to review rental rates to ensure that the shopping centres do not suffer too much of a drop in occupancy during bad times.
Yap, however, lamented that the retail industry still did not have firm statistics on consumer spending trends.
“It does not matter whether you are in the central business district or suburban area, the crucial point is what it takes to make you successful.
“Do you understand your market and product? Detailed feasibility studies are important. Unfortunately Malaysia is short of retail data,” she said, adding that the Statistics Department was compiling sales data and would be making it available by year-end.
By The Star
Malaysian Association for Shopping and Highrise Complex Management (PPK) president Joyce Yap said this year’s conference was important as it would focus on issues such as the impact of inflation, cost management, environmental issues, human resources and political instability faced by Malaysia and the region.
“Speakers will compare the impact of this coming ‘recession’ to the previous two and whether the solutions used would be applicable. It will take into consideration critical issues faced by shopping centres and retailers to plan for survival strategies during this difficult time,” Yap said.
There will be prominent speakers from Malaysia, China, India, the Philippines, Hong Kong, Thailand, Singapore and Indonesia.
CASC, established in 2004, is aimed at regional co-operation and setting future directions for shopping centre management in the region. Council members include the shopping centre associations of founding countries such as Malaysia, Singapore and Indonesia together with Hong Kong, China and the Philippines.
Yap, who is the leasing and marketing director of Pavilion KL, said Malaysia still did not have enough quality shopping centres.
“We are not as competitive and aggressive as some of our neighbouring countries. Look at Thailand, they have recovered from economic and other problems quite fast and this is due to the concerted efforts by their government and the private sector,” she said.
On the current US financial meltdown, Yap believes it would not be as bad an impact as the high inflation, political uncertainty and branding issue faced by Malaysia and the region.
“Shopping is a way of life in Asia. Shoppers are wiser today and retailers need to pamper their customers with added value and incentives. Consumers must feel that they have made a worthy purchase that has also alleviated their perceived status,” she said.
Joyce added that there were many measures that landlords and tenants could take to boost sales.
For instance, landlords could review space usage; promotions, downsizing and energy management while tenants could consolidate, re-invent their merchandise, and conduct direct sales campaigns and franchising.
Where necessary, landlords may have to review rental rates to ensure that the shopping centres do not suffer too much of a drop in occupancy during bad times.
Yap, however, lamented that the retail industry still did not have firm statistics on consumer spending trends.
“It does not matter whether you are in the central business district or suburban area, the crucial point is what it takes to make you successful.
“Do you understand your market and product? Detailed feasibility studies are important. Unfortunately Malaysia is short of retail data,” she said, adding that the Statistics Department was compiling sales data and would be making it available by year-end.
By The Star
More hotels to spruce up Penang island
Nine hotels will be developed in the next three to four years
SOME nine hotels in the three, four and five-star categories will be developed on the Penang island in the next three to four years.
They include Royale Bintang Penang and The Rice Miller Hotel both in Weld Quay, Hard Rock Hotel in Batu Ferringhi, Cititel Express Hotel in Jalan Magazine and Eastin e-hotel in Queensbay Mall.
The other four hotels, still yet to be named, are located at Jalan Sultan Ahmad Shah, Times Square and Queensbay Mall.
The Hard Rock Hotel, scheduled to open in early 2009, is now undergoing construction.
Located along the famous Batu Ferringhi beach front, the 252-bedroom hotel has nine studio suites and a King’s suite as well as four food and beverage outlets, which will include a Hard Rock Cafe, an all-day dining restaurant and a bar-cum-lounge.
The hotel’s main ballroom and three function rooms offer a total of 5,700 sq ft for private events as well as for meetings, corporate events and exhibitions.
Meanwhile, the four-star Royale Bintang Penang is being developed by Boustead Holdings Bhd at a cost of RM110mil.
The 12-storey hotel, equipped with 300 bedrooms, has a built-up area of about 250,000sq ft.
Construction on the hotel has started and it is scheduled for completion at the end of 2009.
The RM150mil Eastin e-Hotel in Bayan Baru is currently being developed by the CP Land group.
CP Land group executive chairman Datuk Tan Chew Piau said the business class hotel would have 339 rooms, of which 28 were suites. It will be completed by mid-2009.
“We also plan to develop a five-star hotel and a budget hotel for the Queensbay Mall project, which are scheduled for completion in 2012 and 2014,” he said.
The IGB Group is scheduled to start developing the 28-storey Cititel Express Hotel soon. The RM100mil three-star hotel will have 550 rooms.
Cititel Hotel Management Sdn Bhd (CHM) managing director Datuk Eric H.K. Lim said the hotel was scheduled to commence operations in the last quarter of 2010.
“It will also feature a podium with a bazaar that can accommodate 80 and 100 shoplots,” Lim said.
Meanwhile, the five-star Rice Miller Hotel, scheduled for completion in 2012, is part of the RM500mil Pier commercial plaza project developed by Asian Global Business Sdn Bhd (AGB).
The Pier occupies six existing 19th century buildings that will see new structures being added on.
“We are working closely with our architects and heritage conservation and environment planner to revitalise the historical resources on the site,” said AGB chief executive officer Dr Noraini Abdullah.
Construction of The Rice Miller Hotel and the Pier project are expected to start in the next six months.
Ivory Properties group will develop a RM250mil five-star hotel for its Times Square scheme.
General manager Chok Keng Vui said construction work on the hotel was scheduled to start in mid-2010.
The hotel, which comes under phase four of the RM1bil Times Square project, will have 500 rooms.
The Low Yat Group has received the green light from the local authorities for its 23-storey hotel with 399 rooms and a double-storey basement car park at Jalan Sultan Ahmad Shah.
Construction will begin soon on the hotel, which will have about 62,000 sq ft of built-up area.
Meanwhile, the Malaysian Association of Hotels (Penang chapter) chairman Marco Battistotti said the new hotels would enable the local tourism industry to tap on tourist arrivals from niche and new market destinations.
“The new hotels will work on tapping unexplored destinations and specialised market segments, increasing the popularity of Penang as a holiday resort,” he said.
Battistotti also said in view of the heritage city status given by Unesco recently, Penang and Malacca should work together to promote heritage tourism of the Straits Settlement.
On average, the hotels in the city enjoy a yearly occupancy of 70% to 75% and beach hotels 60% to 65%.
“With the country’s economy growing 5% to 6% annually, there will still be demand from the domestic and international markets to support the new hotels.
“About 60% of the tourist arrivals is domestic with the remainder from overseas” said Battistotti.
There are now 40 hotels in Penang, of which 25 are in the city and the rest in the beach areas.
By The Star
SOME nine hotels in the three, four and five-star categories will be developed on the Penang island in the next three to four years.
They include Royale Bintang Penang and The Rice Miller Hotel both in Weld Quay, Hard Rock Hotel in Batu Ferringhi, Cititel Express Hotel in Jalan Magazine and Eastin e-hotel in Queensbay Mall.
The other four hotels, still yet to be named, are located at Jalan Sultan Ahmad Shah, Times Square and Queensbay Mall.
The Hard Rock Hotel, scheduled to open in early 2009, is now undergoing construction.
Located along the famous Batu Ferringhi beach front, the 252-bedroom hotel has nine studio suites and a King’s suite as well as four food and beverage outlets, which will include a Hard Rock Cafe, an all-day dining restaurant and a bar-cum-lounge.
The hotel’s main ballroom and three function rooms offer a total of 5,700 sq ft for private events as well as for meetings, corporate events and exhibitions.
Meanwhile, the four-star Royale Bintang Penang is being developed by Boustead Holdings Bhd at a cost of RM110mil.
The 12-storey hotel, equipped with 300 bedrooms, has a built-up area of about 250,000sq ft.
Construction on the hotel has started and it is scheduled for completion at the end of 2009.
The RM150mil Eastin e-Hotel in Bayan Baru is currently being developed by the CP Land group.
CP Land group executive chairman Datuk Tan Chew Piau said the business class hotel would have 339 rooms, of which 28 were suites. It will be completed by mid-2009.
“We also plan to develop a five-star hotel and a budget hotel for the Queensbay Mall project, which are scheduled for completion in 2012 and 2014,” he said.
The IGB Group is scheduled to start developing the 28-storey Cititel Express Hotel soon. The RM100mil three-star hotel will have 550 rooms.
Cititel Hotel Management Sdn Bhd (CHM) managing director Datuk Eric H.K. Lim said the hotel was scheduled to commence operations in the last quarter of 2010.
“It will also feature a podium with a bazaar that can accommodate 80 and 100 shoplots,” Lim said.
Meanwhile, the five-star Rice Miller Hotel, scheduled for completion in 2012, is part of the RM500mil Pier commercial plaza project developed by Asian Global Business Sdn Bhd (AGB).
The Pier occupies six existing 19th century buildings that will see new structures being added on.
“We are working closely with our architects and heritage conservation and environment planner to revitalise the historical resources on the site,” said AGB chief executive officer Dr Noraini Abdullah.
Construction of The Rice Miller Hotel and the Pier project are expected to start in the next six months.
Ivory Properties group will develop a RM250mil five-star hotel for its Times Square scheme.
General manager Chok Keng Vui said construction work on the hotel was scheduled to start in mid-2010.
The hotel, which comes under phase four of the RM1bil Times Square project, will have 500 rooms.
The Low Yat Group has received the green light from the local authorities for its 23-storey hotel with 399 rooms and a double-storey basement car park at Jalan Sultan Ahmad Shah.
Construction will begin soon on the hotel, which will have about 62,000 sq ft of built-up area.
Meanwhile, the Malaysian Association of Hotels (Penang chapter) chairman Marco Battistotti said the new hotels would enable the local tourism industry to tap on tourist arrivals from niche and new market destinations.
“The new hotels will work on tapping unexplored destinations and specialised market segments, increasing the popularity of Penang as a holiday resort,” he said.
Battistotti also said in view of the heritage city status given by Unesco recently, Penang and Malacca should work together to promote heritage tourism of the Straits Settlement.
On average, the hotels in the city enjoy a yearly occupancy of 70% to 75% and beach hotels 60% to 65%.
“With the country’s economy growing 5% to 6% annually, there will still be demand from the domestic and international markets to support the new hotels.
“About 60% of the tourist arrivals is domestic with the remainder from overseas” said Battistotti.
There are now 40 hotels in Penang, of which 25 are in the city and the rest in the beach areas.
By The Star
October 4, 2008
Brisk sales for Hunza project
Hunza Properties Bhd has sold over 95% of its RM105mil Alila Homes project, comprising 122 three-storey linked houses and 40 three-storey townhouses, in Tanjung Bungah Hill.
Executive chairman Datuk Khor Teng Tong said the group spent RM5mil on landscaping the terraced garden according to feng shui principles.
Besides the terraced garden, purchasers were attracted to the project’s elevated location at least 50m above sea level and its security system, he told StarBiz.
“It is a gated and guarded community.
“There are also closed-circuit televisions strategically located in the development,” he said.
Although construction and land costs had increased by 30% and 200% respectively, Hunza had maintained the original selling price of RM786,000 for the three-storey linked houses, he added.
The linked houses have built-up areas ranging from 2,218 to 2,378 sq ft. The project also has a clubhouse with various facilities.
By The Star
Executive chairman Datuk Khor Teng Tong said the group spent RM5mil on landscaping the terraced garden according to feng shui principles.
Besides the terraced garden, purchasers were attracted to the project’s elevated location at least 50m above sea level and its security system, he told StarBiz.
“It is a gated and guarded community.
“There are also closed-circuit televisions strategically located in the development,” he said.
Although construction and land costs had increased by 30% and 200% respectively, Hunza had maintained the original selling price of RM786,000 for the three-storey linked houses, he added.
The linked houses have built-up areas ranging from 2,218 to 2,378 sq ft. The project also has a clubhouse with various facilities.
By The Star
Two largest REITs may be postponed
The proposed listing of the two largest real estate investment trusts (REITs) on Bursa Malaysia in terms of asset value will likely be postponed to next year if the weak market conditions continue.
Analysts said the current lacklustre mood on the local bourse could drag to the middle of next year as the full impact of the US financial crisis took its toll on equity markets around the world.
“REIT sponsors will not want to proceed with listing plans and will wait until the market improves before going ahead with the launch of their REIT,” an analyst with a local brokerage told StarBiz.
Singapore’s CapitaLand Ltd, which earlier planned to list its pure play retail REIT on Bursa by year-end, may delay the exercise if the current weak market conditions persist.
According to a company spokesman, the timing for the proposed listing of its REIT was subject to market conditions.
“We note the extremely negative market conditions currently and are watching the market situation carefully. We will provide any material update on the listing plans when appropriate,” he said in response to a query on the company’s listing plans.
CapitaLand’s plans to list a REIT with RM2bil of assets will see the country’s first foreign-sponsored REIT on Bursa.
The company will group its shopping mall assets in Malaysia for the trust.
One of Asia’s largest real estate firms, CapitaLand had last August paid RM770mil to buy Gurney Plaza in Penang and RM435mil for the Mines Shopping Fair in Seri Kembangan, Selangor.
Its latest acquisition was a 61.9% stake in Sungei Wang Plaza for RM595mil in June.
HwangDBS Vickers Research said Sunway City Bhd (SunCity) also looked likely to delay the launch of its REIT to next year in view of the current market sentiment.
With RM3bil worth of assets, the SunCity REIT will be the country’s first listed integrated resort REIT
By The Star
Analysts said the current lacklustre mood on the local bourse could drag to the middle of next year as the full impact of the US financial crisis took its toll on equity markets around the world.
“REIT sponsors will not want to proceed with listing plans and will wait until the market improves before going ahead with the launch of their REIT,” an analyst with a local brokerage told StarBiz.
Singapore’s CapitaLand Ltd, which earlier planned to list its pure play retail REIT on Bursa by year-end, may delay the exercise if the current weak market conditions persist.
According to a company spokesman, the timing for the proposed listing of its REIT was subject to market conditions.
“We note the extremely negative market conditions currently and are watching the market situation carefully. We will provide any material update on the listing plans when appropriate,” he said in response to a query on the company’s listing plans.
CapitaLand’s plans to list a REIT with RM2bil of assets will see the country’s first foreign-sponsored REIT on Bursa.
The company will group its shopping mall assets in Malaysia for the trust.
One of Asia’s largest real estate firms, CapitaLand had last August paid RM770mil to buy Gurney Plaza in Penang and RM435mil for the Mines Shopping Fair in Seri Kembangan, Selangor.
Its latest acquisition was a 61.9% stake in Sungei Wang Plaza for RM595mil in June.
HwangDBS Vickers Research said Sunway City Bhd (SunCity) also looked likely to delay the launch of its REIT to next year in view of the current market sentiment.
With RM3bil worth of assets, the SunCity REIT will be the country’s first listed integrated resort REIT
By The Star
October 1, 2008
Marina Bay Sands to open by end-2009
Construction of integrated resort in Singapore on track
COME late 2009, Singapore’s vibrant Marina Bay waterfront will feature a new and magnificent destination - The Marina Bay Sands.
The Marina Bay Sands is being developed by Marina Bay Sands Pte Ltd, a subsidiary of Las Vegas Sands Corp, a leading global integrated resorts developer and an industry leader in the meetings, incentives, conventions and exhibitions (MICE) market in the US.
According to Marina Bay Sands Pte Ltd general manager George Tanasijevich, construction of Marina Bay Sands is on-track and on-target for an end-2009 opening.
The total size of the Marina Bay Sands site exceeds 15 hectares with the MICE space occupying more than 120,000 sq m; three hotel towers with more than 2,600 rooms; over 750,000 sq ft of retail and F&B outlets; theatres with approximately 4,000 seats; casino and an event plaza which will accommodate 10,000 people.
“Our three hotel towers; MICE facilities; casino and theatres areas are expected to be topped off in mid-2009. Currently, the development of Tower 1 is at level 13; Tower 2 at level 11 and Tower 3 at level 9.
“In the MICE area, sub-structure works are well established and progressing, and superstructure works are well underway and rising above ground.
“Casino sub-structure works are also progressing well and superstructure works are about to commence above ground,” Tanasijevich told StarBiz.
Las Vegas Sands, which was awarded the bid for Singapore’s first integrated resort (IR) in May 2006, will invest more than S$5bil to develop The Marina Bay Sands, said to be one of the largest investments in the world for a single IR.
The IR is expected to generate S$2.7bil to Singapore’s annual gross domestic product and create 33,000 jobs throughout the economy by 2015.
Tanasijevich said the Marina Bay Sands’ opening would be a powerful catalyst to propel Singapore’s status as a leading MICE hub and enhanced the city state’s position as one of the world’s premier business and leisure destinations.
“As the first luxury IR in Southeast Asia, Marina Bay Sands will offer all visitors new and world-class experiences in dining, shopping, entertainment and MICE.
“It will combine state-of-the-art convention and exhibition facilities, luxury hotel facilities, an iconic ArtScience Museum, Las Vegas-style gaming, theatres, entertainment and an unparalleled spread of shopping and dining outlets in one landmark structure.”
In addition, the design of the development, by world-renowned architect Moshe Safdie, is unique and will integrate seamlessly with its surroundings at downtown Marina Bay.
Two iconic architectural features of Marina Bay Sands are the inspiring ArtScience Museum and the sky park offering expansive 360 degree views of Singapore’s city skyline.
“Marina Bay Sands is committed to helping Singapore achieve its economic, tourism and social goals. To that end, we are working closely with the Ministry of Manpower, Workforce Development Agency, National Trades Union Congress and Singapore Tourism Board to ensure that there is a sufficient pool of skilled talent for the sector.
“Key opportunities moving forward include leveraging and building on Singapore’s status as a premier destination for MICE events. Last year, the business travel and events sector earned over S$5bil for Singapore, establishing a new record
for the MICE sector in the city state.
“Singapore was also ranked as the top international meeting city in the world by the Union of International Associations for the first time this year,” he noted.
The company’s in-house MICE team is leveraging on its extensive experience operating in Asia to market the IR’s MICE facilities to its global network of event organisers.
The team has received an enthusiastic response from organisers of events for industries including medical/ pharmaceutical, finance, IT/telecoms and logistics.
“Marina Bay Sands aims to help position Singapore as a leading leisure, tourism and MICE destination, and support the country in achieving its goals of increasing tourism receipts to S$30 billion and visitor arrivals to 17 million in 2015.
By The Star
COME late 2009, Singapore’s vibrant Marina Bay waterfront will feature a new and magnificent destination - The Marina Bay Sands.
The Marina Bay Sands is being developed by Marina Bay Sands Pte Ltd, a subsidiary of Las Vegas Sands Corp, a leading global integrated resorts developer and an industry leader in the meetings, incentives, conventions and exhibitions (MICE) market in the US.
According to Marina Bay Sands Pte Ltd general manager George Tanasijevich, construction of Marina Bay Sands is on-track and on-target for an end-2009 opening.
The total size of the Marina Bay Sands site exceeds 15 hectares with the MICE space occupying more than 120,000 sq m; three hotel towers with more than 2,600 rooms; over 750,000 sq ft of retail and F&B outlets; theatres with approximately 4,000 seats; casino and an event plaza which will accommodate 10,000 people.
“Our three hotel towers; MICE facilities; casino and theatres areas are expected to be topped off in mid-2009. Currently, the development of Tower 1 is at level 13; Tower 2 at level 11 and Tower 3 at level 9.
“In the MICE area, sub-structure works are well established and progressing, and superstructure works are well underway and rising above ground.
“Casino sub-structure works are also progressing well and superstructure works are about to commence above ground,” Tanasijevich told StarBiz.
Las Vegas Sands, which was awarded the bid for Singapore’s first integrated resort (IR) in May 2006, will invest more than S$5bil to develop The Marina Bay Sands, said to be one of the largest investments in the world for a single IR.
The IR is expected to generate S$2.7bil to Singapore’s annual gross domestic product and create 33,000 jobs throughout the economy by 2015.
Tanasijevich said the Marina Bay Sands’ opening would be a powerful catalyst to propel Singapore’s status as a leading MICE hub and enhanced the city state’s position as one of the world’s premier business and leisure destinations.
“As the first luxury IR in Southeast Asia, Marina Bay Sands will offer all visitors new and world-class experiences in dining, shopping, entertainment and MICE.
“It will combine state-of-the-art convention and exhibition facilities, luxury hotel facilities, an iconic ArtScience Museum, Las Vegas-style gaming, theatres, entertainment and an unparalleled spread of shopping and dining outlets in one landmark structure.”
In addition, the design of the development, by world-renowned architect Moshe Safdie, is unique and will integrate seamlessly with its surroundings at downtown Marina Bay.
Two iconic architectural features of Marina Bay Sands are the inspiring ArtScience Museum and the sky park offering expansive 360 degree views of Singapore’s city skyline.
“Marina Bay Sands is committed to helping Singapore achieve its economic, tourism and social goals. To that end, we are working closely with the Ministry of Manpower, Workforce Development Agency, National Trades Union Congress and Singapore Tourism Board to ensure that there is a sufficient pool of skilled talent for the sector.
“Key opportunities moving forward include leveraging and building on Singapore’s status as a premier destination for MICE events. Last year, the business travel and events sector earned over S$5bil for Singapore, establishing a new record
for the MICE sector in the city state.
“Singapore was also ranked as the top international meeting city in the world by the Union of International Associations for the first time this year,” he noted.
The company’s in-house MICE team is leveraging on its extensive experience operating in Asia to market the IR’s MICE facilities to its global network of event organisers.
The team has received an enthusiastic response from organisers of events for industries including medical/ pharmaceutical, finance, IT/telecoms and logistics.
“Marina Bay Sands aims to help position Singapore as a leading leisure, tourism and MICE destination, and support the country in achieving its goals of increasing tourism receipts to S$30 billion and visitor arrivals to 17 million in 2015.
By The Star
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