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Saturday, March 22, 2008

An Investment Opportunity - Malaysia's Luxurious Property Exhibition

Showcase the region's most Prestigious Development, Award Winning Developer Development, Super Bungalows, Super Condominium and much more..

KLCC Malaysia International Luxury Properties Exhibition
Date: 21 - 23 March, 2008


Opening Times :

11:00 a.m. - 7:00p.m. ( Friday - Saturday )
11:00 a.m. - 5:00 p.m. ( Sunday )

Admission :
Free for Invited Guests, Expatriates & Public
Free Advice, meet the experts*
Free Advice on EPF Buying House Withdrawal Scheme
Free Seminar
Lucky draw end of seminar
And much more at the expo ...

A Prestigious Properties Investment Event Brought to you by :
Exhibition Guide (M) Sdn Bhd
Tel: 03-9056 3323
Fax: 03-9056 5323

An 'anggun' project -- L&H to build 6 bungalows in Damansara Heights

ANGGUN at Damansara Heights comprises six triple-storey bungalow houses nestled on about an acre along Jalan Dungun. Although there have been little publicity about the development by way of advertisement, two of the six houses have been sold.

The X factor of this project is its location and its concept. The project is minutes away from Bangsar and about equal distance between Petaling Jaya and the city. The second factor is the possibility of it being guarded. Two of the six houses are served by a single entrance and exit. The remaining four can be accessed by a second entrance. Essentially, the six houses hug a slope.

The development will be tropical with lots of glass to bring in the light, says William Wong.

Anggun is developed by L&H Property Development Sdn Bhd, the main shareholder in Tetap Tiara Sdn Bhd which developed Jaya One in Petaling Jaya.

Priced from RM5.8mil to RM9.3mil, Anggun is pretty much a niche and boutique development.

This means considerable attention has been paid to details and overall quality and finishing.

Featuring high-pitched roof with wide overhangings, courtyards and lavish landscapes, there are five designs located on this triangular land opposite the Lagenda condominium.

The smallest unit is on 6,000 sq ft with a built-up of 5,800 sq ft while the largest is on 10,000 sq ft and a built-up of 9,300 sq ft.

L&H executive director William Wong says the overall feel of the development is tropical with lots of glass to bring in the light.

Originally planned for a low-rise condominium, Wong says the freehold individually titled project was re-conceptualised in 2002/03. Four of the six units come with lap pool. All six come with lifts and security features.

Wong says the land was purchased in 1998 at RM170 per sq ft. Today, land prices in that location have tripled.

They paid about RM8mil for it. The cost of construction is RM350 per sq ft including consultancy fees.

Wong says his father Wong Chee Kooi, who retired from SP Setia Bhd, has a hand in the project.

“L&H actually stands for Lam and Hon, my name and my brother’s name. We are both in property development. My father is training me to run this project on my own.

“There are, after all, only six houses, not 60. Because of its niche and high-end element, he felt it was a good place to start. He has always stressed that high-end means more than just good detailing or finishes. The workmanship must be good, if not superb.

The design and layout must be functional, yet pleasing and fluid,” says Wong.

And so there is the onyx-featured wall in some units and spectacular stone works in others.

“This is our pet project. We started with a raw piece of land and although there is a slope, we have pretty much kept to the original land profile, hence the two entrances,” says Wong.

There is no equivalent English word for “Anggun”, which means beauty. It is more frequently used in Indonesian Malay than locally.

“With such a name and with so much put into this boutique-size project, quality and the best of detailing will be there. When we designed the house, we have thought of every possible use in terms of space. The man of the house would put greater emphasis on the study, the living area and the master bedroom. For the woman, it would be the kitchen and storage space.”

Blending functionality, aesthetic and space, Anggun will be ready by the end of this year. The project started in the first quarter of 2007.

Other projects by L&H include 70 units of 3-storey garden terraced housing and 104 units condovillas at Sierramas Hills (completed in 2005) and the commercial development Jaya One.

By The Star (by Thean Lee Cheng)

Of projections and revisions - SP Setia attempts to reassure investors

BLUE chip property counter SP Setia came under the harsh spotlight of investors over the week. Indeed, that's a rarity for a company, helmed by group managing director Tan Sri Liew Kee Sin. The company is well liked for its track record on strong earnings delivery and ability to turn non-prime areas into comfortable residential homes.

Stock-wise, it is arguably one of the must-haves for portfolio managers.

Still, the week revealed that no stock, blue chip or otherwise is immune from the uncertainties that are currently weighing down the market.

The trigger happened when the company indicated to analysts a week ago that it is revising sales projections from RM1.8bil to RM1.5bil. It was three months ago when the company made the initial guidance of RM1.8bil sales projection. The outcome of the lower revision for sales projection by RM300mil resulted in the counter losing some RM726mil in market value over six trading days.

The heavy selling, largely led by foreigners, compelled the company to issue another note that stressed that the lower sales target of RM1.5bil made in the immediate aftermath of the general election was based on assumption of worst case scenario in the event of delays in the formation of local councils. “Given the company’s Oct 31 year end, a delay of one to two months would have resulted in a timing difference of sales being made in FY2009 instead of FY2008,” it said.

It added that in view of the successful transition of state governments in Penang and Selangor and the pro-business stance expressed by both Chief Ministers in the press, the group is confident that its original sales target of RM1.8bil for FY2008 can still be met.

In this regard, it is of noted that the group’s sales for the first four months of FY2008 amounts to RM646mil which is significantly higher than the RM290mil recorded in the corresponding period in FY2007.

Investors were still cautious and this showed in the shares' performance the next day following the announcement.

An analyst says investors perceived the note to be one aimed at “damage control.” Still, she is confident that the group will achieve its initial sales target, adding that the concern is simply one related to a timing issue.

“Most of the delays, if any, will be recognised in FY09 as a bulk of SP Setia's launches are targeted in the second half of 2008. In any case, a delay of two months means a recognition of profit in the following financial year,” she adds.

Although 14 out of 23 analysts are maintaining their “buy” recommendation, most have revised SP Setia's target price and earnings forecast downwards.

Investors' general cautiousness can be attributed to worry that there may be a delay in the launch of Setia Vista project in Penang, an expected muted sales at Setia Eco Gardens in Johor and to some extent, the recent termination of a deal to acquire land in Cyberjaya which was perceived as a weak signal for the broader property market.

Furthermore, concerns on the macro economy and higher inflation risks are expected to reduce consumer discretionary income.

Citigroup is expecting private consumption to slow from 11.7% in 2007 to 8% in 2008, hence mass property buyers are expected to adopt a wait-and-see attitude.

AmResearch's property analyst Chong Tjen-San opines that the delay in SP Setia's launches are not due to poor sentiment on the broader property sector but more project specific issues.

For instance, he points out that SP Setia strategically delayed the launch of Setia Vista as it recently obtained approval for the release of 167 units of bumi units from Phase 1 and Phase 2 of Setia Pearl Island.

“SP Setia has done well in Penang. In the Setia Pearl project, it sold Phase 1 terrace houses for RM600,000 per unit. As for Phase 3, it sold 49 units at RM750,000 per unit. As it has additional supply from Setia Pearl and pricing was already raised quite aggressively, it had adopted a wait and see to gauge the take-up rates,” says Chong.

While the overall property market outlook is expected to grow, analysts remain cautious on the back of the global financial turmoil.

They worry that most of the price appreciation in 2007 was due to speculation and in hindsight, analysts say that the price spurt was unsustainable.

With that, many potential home buyers are holding out in anticipation of better prices.

“Investors who bought high end homes have benefited from the bullish cycle in financial markets in the last few years. With the sharp correction in markets, the purchasing powers of these buyers will also be affected,” says the property analyst.

She adds: “While there will be demand for lower to middle-class houses, buyers may hold off from purchasing high end homes. Last year, it was mainly the high end developments that drove the euphoria in property markets.”

By The Star (by Tee Lin Say)

Oilcorp unit to raise up to RM300m via AIM listing

Proceeds to be used for development of four projects

PETALING JAYA: Oilcorp Bhd’s property unit, D’Tiara Corp Sdn Bhd, is looking to raise RM250mil to RM300mil in proceeds from its proposed Alternative Investment Market (AIM) listing on the London Stock Exchange.

Oilcorp executive director Pua Yow Liang said it was still finalising the actual amount with its advisor in London, but that was the target it planned to raise.

“The proceeds will only be used for the development of the four projects that we currently have,” he told a press conference after the company EGM yesterday.

Oilcorp’s shareholders unanimously approved the company’s proposal to list its property arm on the AIM. The listing is slated to take place in May.

Pua Yow Liang

D’Tiara Corp owns D’Tiara Beach Resort in Port Dickson and has three ongoing developments – D’Tiara Office & Hotel Suites in Kuala Lumpur, D’Tiara Waterfront Resort in Pulau Indah and D’Tiara Leisure & Health Resort in Genting.

While there are no plans to undertake additional projects at present, Pua said D’Tiara Corp’s post-listing plans would be to expand its business to neighbouring countries by franchising the D’Tiara brand and resort-operation concept.

“We are in the process of identifying potential joint partners in Thailand, Indonesia and Cambodia. Perhaps we will formalise our partnerships by year-end,” he said.

On the outlook of the local property scene, Pua opined that it was still “doing well” underpinned by market expectations that the country would be able to achieve 6% gross domestic product this year, given last year’s robust performance.

“We view the current volatility as a short-term consolidation process. The take-up rate for office and residential property launches in Kuala Lumpur and the Klang Valley are still doing very well,” he said, adding that foreign investors were now more focused on Asian markets due to the subprime crisis in the US.

Pua said that in line with the AIM listing exercise, the company would conduct road shows to attract foreign institutional investors and fund managers to take up shares in D’Tiara Corp.

“This is an opportunity for foreign investors to participate in Malaysian property development,” he said, adding that the target markets for the road shows would be Europe and the Middle East.

By The Star (by Suraj Raj)

D'Tiara aims to raise RM300m in UK

D'TIARA Corp Ltd, the property arm of Oilcorp Bhd, expects to raise an estimated RM300 million from an initial public offering (IPO) in London, the UK.

D'Tiara executive director Pua Yow Liang said the money will be used to fund its projects and as working capital for the D'Tiara Beach Resort in Port Dickson, Negri Sembilan.

The actual proceeds will depend on investor interest, which will be gauged during roadshows for the IPO, Pua told reporters after Oilcorp's extraordinary general meeting (EGM) in Kuala Lumpur yesterday.

The roadshows, which will kick off next month, will cover the Middle East and Europe. D'Tiara's shares are due to be listed on the London Stock Exchange's AIM in May.

D'Tiara has three ongoing projects valued at RM2 billion: D'Tiara Waterfront Resort in Selangor, D'Tiara Leisure and Health Resort in Pahang and D'Tiara Office and Hotel Suites in Kuala Lumpur.

D'Tiara will also be posting its first-ever profits after three years of losses.

Oilcorp's shareholders approved the proposed IPO of D'Tiara at the EGM yesterday.

As part of the listing plan, Oilcorp is selling its entire interest in D'Tiara Corp Sdn Bhd for RM119.75 million in exchange for new shares in D'Tiara.

By New Straits Times (by Roziana Hamsawi)

Plan to make Penang choice MICE destination

The new state government wants to make Penang a destination of choice for meetings and exhibitions to boost revenue from the tourism industry.

It plans to improve road and air connectivity to and from Penang, in addition to the transport infrastructure within the state, Chief Minister Lim Guan Eng yesterday said.

LIM: We must make Penang the most cost-effective exhibition and conference centre in the region
"Our land port in Bukit Mertajam and sea port will also play a vital role in making Penang a logistics hub which will complement the industry for ease of distribution of exhibits and materials, within and outside the country," he said when officiating the International Industrial Expo at the Penang International Sports Arena.

"We must make Penang the most cost-effective exhibition and conference centre in the region to serve as a springboard for commercial companies to Southeast Asian companies."

Lim cited statistics from Singapore to press his argument on the MICE (meetings, incentives, conferences and exhibitions) market.

"While local statistics are not yet available, comparative statistics in Singapore points to a significantly higher expenditure by exhibition participants versus a typical ordinary tourist," he said.

"Even back in 1997, an average exhibitor spent S$2,892 (RM6,651.60) per visit, while an average exhibition visitor spent S$1,837 (RM4,225.10).

"On the other hand, an ordinary tourist in Singapore will spend only S$746 (RM1,715.80) per visit," he said.

By New Straits Times (by Marina Emmanuel)

Japan property investor folds, a subprime victim

TOKYO: A Japanese property investor has filed for court protection from creditors, the first listed company in Japan to collapse from tighter lending in the wake of the US subprime crisis.

Reicof Co Ltd said it had failed with debt of 42.6 billion yen (100 yen = RM3.21) as investments in hotels went sour.

"Financial and real estate markets have deteriorated in the wake of the subprime crisis and we were not able to sell properties or secure loans as expected," Masaki Nogami, a Reicof lawyer, said at a news conference yesterday.

Japanese banks are getting cold feet on property, analysts say, only giving 60-70 per cent of a building's value compared to 80-90 per cent a couple of years ago.

Industry officials say investors are pulling back from Japanese properties as they eye better opportunities in the United States and Europe to pick up distressed assets.

Japanese real estate stocks have been halved in value since mid-2007, also hit by troubles in the residential sector after tighter building codes were introduced.

Credit Suisse analyst Yoji Otani said many real estate firms had already revised down their earnings outlooks and more failures may be yet to come.

"Many real estate investment funds were struggling even before the subprime crisis, and the tighter lending conditions are delivering the final blow," he said.

By Reuters

Terengganu all out to woo 3.5m tourists this year

Tourist Attraction: Perhentian Island off the coast of Kuala Besut, Terengganu, boasts some of the best dive sites in Peninsular Malaysia

TERENGGANU is mounting an aggressive drive to gear up its tourism industry. Boosted by East Coast Economic Region (ECER) tourism initiatives, the state aims to target 3.5 million tourists under its Visit Terengganu Year (VTY 2008) campaign.

According to Tengku Mohd Arifin Tengku A. Rahman, head of Terengganu's secretariat for VTY 2008, the 3.5 million target is an increase from 2.8 million last year which contributed RM1.47 billion to the state's economy, up from RM1.28 billion in 2005.

To woo visitors in VTY 2008, Terengganu has lined up 25 major events, including the Monsoon Cup Yacht Racing.

"We are also pitching for our own Federation of Equestrian International horse-racing event," Mohd Arifin added in a statement.

At the same time, Terengganu is giving more emphasis to its "Crystal Mosque". Made of crystal shine glass with steel foundation, the Crystal Mosque is a part of the RM250 million Islamic Civilisation Park situated on a 23ha site.

Malaysia Association of Hotels chairman Raja Kamarul Bahrin Shah Raja Ahmad said the uniqueness in Terengganu tourism is that there is consciousness to conserve nature, despite shooting for growth.

He said the state's proactive approach to take control of development, conservation and perpetuation of handicraft as well as the environment, will create something different for Terengganu.

"The West Coast is slowly losing its culture and heritage to pave the way for development without much proper control and guidelines. I feel that Terengganu should maintain what they have done now and this should be Terengganu's trademark for the near future," he added.

To serve tourist growth, the Sultan Mahmud Airport which is located 15km from the town, will also be upgraded to an international aviation hub under ECER.

Meanwhile, chairman of the Terengganu chapter of Malaysian Association of Tour and Travel Agents (Matta) Wan Supian Wan Ishak said the state government had encouraged further developments of hotels and resorts which will in turn result in substantial increase in tourist volume from 2008 onwards.

By New Straits Times

Gamuda: No delay in double-tracking project

PETALING JAYA: Gamuda Bhd is not expected to see any delay in the implementation of the double-tracking project despite the new state administrations. In fact, works are ahead of schedule.

The senior management of Gamuda had a luncheon for analysts on Wednesday and affirmed to the investor community that it was operationally “business as usual.”

Aseambankers, in a report, noted that the Ipoh-Rawang-Padang Besar double track was still anticipated to see 15% gross margin as sufficient cost buffers had been built in.

In a report, AmResearch said the project, a joint venture between Gamuda and MMC Corp Bhd, had allocated up to 24%, or RM3bil, to bumiputra subcontractors, a third of which had already been awarded.

On another note, Aseambankers said Gamuda would take some time to finalise the sale of Syarikat Pengeluar Air Selangor Sdn Bhd to Kumpulan Darul Ehsan Bhd even though it had been indicated that the parties had agreed on the pricing, which was also approved by the Federal Government before the general election.

Overseas wise, property development in Vietnam remained unchanged despite the present high inflation and tightening of loans.

Gamuda hoped to lock-in sales of two of 10 parcels of land in Yenso, Vietnam, in the fiscal year ending July 31, 2009, Aseambankers noted.

The company's Nam Theun 1 hydropower project in Laos is currently being reviewed on higher costs of project implementation, which could result in a 20% increase in tariffs.

It also noted that the Securities Commission recently approved the proposed RM1.5bil Sukuk issue for Lebuhraya Damansara-Puchong's debt-refinancing plan.

A capital repayment by concessionaire, Lingkaran Trans Kota Holdings Bhd, was imminent following the debt restructuring, Aseambankers said.

The research house said Gamuda was on track to meet consensus expectations when it released its second-quarter results next week.

By The Star