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Monday, June 9, 2008

Rental return for NAZA TTDI project

SM Faliq SM Nasimuddin with a model of Laman Seri Business Park.

NAZA TTDI Sdn Bhd (formerly TTDI Development Sdn Bhd) is offering a two-year guaranteed rental return (GRR) of 7.5% per annum for its Laman Seri Business Park, billed as the “best” commercial development in Shah Alam.

The offer, rarely given unless the developer is financially sound and confident of its development, will be effective two months after the date of collection of keys by the purchasers. The two-month period is the normal rental-free renovation period given to tenants.

Senior manager (marketing & sales administration) SM Faliq SM Nasimuddin told StarBiz that the company was the only one in the area offering a GRR scheme for its commercial development.

“The GRR reflects our confidence in being able to attract the right kind of tenants to our development. There will be no problem of us honouring the 7.5% because of our track record of over 35 years in the property business during which we have always delivered on our commitments,” he said.

He added that purchasers could be confident with the GRR scheme as the project was strategically located near many established housing estates with a captive population of over 400,000.

“This project follows the success of TTDI Plaza, which has today become a vibrant business centre attracting various lifestyle businesses, food & beverage outlets, showrooms for various products (such as luxury cars and home furnishings), pharmacy, clinics, fitness centres and service centres. In fact, TTDI Plaza has seen its capital value appreciate by more than 35% since completion,” he said.

Prominent landmarks near Laman Seri Business Park include Sultan Abdul Aziz Shah Golf Club, D' Kayangan, Bukit Jelutong, Glenmarie Resort, and TTDI Jaya. There are also six golf courses and several colleges as well as a Giant hypermarket in the vicinity.

The 8.24-acre Laman Seri Business Park being developed by TTDI Harta Sdn Bhd (a subsidiary of NAZA TTDI) is located opposite the company's newly completed Laman Seri, an exclusive gated and guarded residential enclave.

TTDI Harta won the Cityscape Asia Real Estate Awards 2008 for Laman Seri Business Park under the Future Commercial Development category recently.

The Management and Science University with a large student population is located adjacent to the project. The project is about 35% completed and is on schedule for completion by July 2009.

Faliq said 40% of the 46 units of four and five-storey shop offices had been sold since the project's soft launch about two months ago.

Priced from about RM273 per sq ft (after bumiputra discount), the units will feature a modern contemporary facade, dual 26ft frontage, high ceiling heights of 14ft for ground floors and 11.5ft for upper floors, handicapped-friendly design layout, wide pedestrian thoroughfare, and shared lift for every two units except for premium 39ft wide corner units which will have their own lift.

There will be 928 parking bays at basement and surface levels.

“A special feature is the 37,000 sq ft central events piazza that will serve as an ideal meeting point. It is based on an American concept where office workers can relax and have their meals alfresco amid lush landscapes and water features,” said Faliq, adding that the green space would create a sense of spaciousness.

The piazza will have water features and synchronised water fountains with fibre-optic lighting.

He said most of the purchasers were professionals as well as companies looking to set up their corporate offices at Laman Seri Business Park. “We have upgraded the finishes including using granite and natural stones,” he said.

NAZA TTDI is a member of the NAZA group. Its flagship project is currently the RM3.5bil Platinum Park in the Kuala Lumpur City Centre area.

By The Star - StarBiz - (by S.C.Cheah)

Magna Prima plans RM1b REIT

PROPERTY developer Magna Prima Bhd plans to set up a RM1 billion real estate investment trust (REIT) within the next five years.

The first asset to be sold to the REIT would be a retail mall, which will be built within the company's integrated lifestyle property development, Magna City Kuala Lumpur.

Chief executive officer Lim Ching Choy said the company plans to sell at least three assets to the REIT.

"The retail mall in Magna City will be the first asset that we are going to maintain for retained income and eventually, we will inject this asset into (the) REIT.

"We are building a few more, so our REIT asset will exceed RM1 billion," he told Business Times in an interview in Kota Damansara, Selangor.

Developers typically sell their assets to a property trust to raise funds that would be used to cut debt. In most cases, REITs are also owned by developers who want to maintain control over their assets.

Lim also said that the company may raise funds from a bond sale to finance the retail mall component of Magna City.

"We want to issue bonds to match our rental income, so that the long-term asset is funded by long-term corporate debt," he said.

Magna Prima expects revenue to increase to RM1.6 billion within four years, mainly from the Magna City project. It made RM26.6 million net profit on revenue of RM344.4 million in the year to December 31 2007.

Currently, 74 per cent of the company's income comes from property development and the rest is from construction.

It expects equal contributions from the two divisions within the next three years.

Magna Prima's construction arm is currently doing in-house jobs with a total contract value of RM647 million.

Magna Prima has also bought 90 per cent of a construction firm, Pembinaan Contamaju-Infocast Sdn Bhd (PCI) to beef up its construction arm.

Its wholly-owned subsidiary, Magna Prima Construction Sdn Bhd, is involved in the construction of Dataran Otomobil, Magna View and Metro Prima Kepong, while PCI will do new projects such as U1 in Shah Alam and Magna City.

Currently, Magna Prima has a total landbank of 32.8ha, small compared with large parcels owned by other developers.

"We have RM2.13 billion gross development value (GDV) on the 32.8ha land, which will sustain us in the next four years.

"We are focusing on high-density development, so our GDV value per acre is very high compared with other developers," he said.

Magna Prima has identified two parcels of land for next development projects - one is less than 0.8ha located within the Golden Triangle area in the city and another is more than 4ha land in the highly densed suburb in Klang Valley.

"We are at the land negotiation stage, and we expect to conclude it within two months' time," he said.

The GDV of each project is estimated to be more than RM1 billion.

Lim said the company plans to focus its property development activities in Klang Valley and has no immediate plans to venture abroad.

By New Straits Times (by Hamisah Hamid)

Parkroyal KL set for revenue boost

PARKROYAL Kuala Lumpur expects revenue to rise 10 per cent this year to about RM50 million as it adds a club floor and 78 rooms.

The five-star hotel wants to have a bigger share of the meetings business and the move will help fill rooms, garner better average room rate (ARR) and generate more income from food and beverage sales.

In the financial year to December 31 2007, the Singapore-owned and operated hotel chalked up RM45 million revenue, some 61 per cent of which came from its rooms and the rest from its food division.

"We expect revenue to in-crease between RM4.5 million and RM5 million, a good proportion coming from the additional room inventory," its recently appointed general manager Ian McKie told Business Times in an interview.

"We expect to close the year at 70 percent average occupancy and an ARR of RM285" Ian McKie General manager Parkroyal Kuala Lumpur

He added that the hotel's gross operating profit (GOP) is set to improve to RM17.5 million this year from RM13.5 million last year.

Last year, the hotel achieved an ARR of RM245 and an average occupancy of 78 per cent.

This year, the ARR is expected to improve although the average occupancy may fall slightly given the extra rooms. It now has 426 rooms.

"This year, having gone through the first four months, we expect to close the year at 70 per cent average occupancy and an ARR of RM285," McKie said.

The hotel is owned and managed by Parkroyal Hotels & Resorts Pte Ltd, a subsidiary of the Singapore-listed Hotel Plaza Ltd.

While the Parkroyal brand has been in Malaysia since 1989, Hotel Plaza came into the picture only in 2002 after the acquisition of the brand and hotel.

Late last year, Parkroyal Kuala Lumpur completed a RM16 million renovation to add the club floor and convert some of the office units into hotel rooms in the adjoining commercial building, President House.

By New Straits Times (by Vasantha Ganesan)

2nd Penang bridge to cost RM4.3b

The Government has finalised costings for the second Penang bridge, setting the figure at RM4.3 billion.

Business Times learnt that the matter was finalised at a meeting held yesterday between the Finance Ministry, UEM Builders Bhd and China Harbour Engineering Co Ltd (CHEC).

"The RM4.3 billion price was given by the government and both parties will now have to adhere to it although each had presented higher costings," a source said.

It is learnt that Second Finance Minister Tan Sri Nor Mohamed Yakcop chaired the meeting, which was also attended by Tan Sri Zaini Omar, who heads a task force for the implementation of the second bridge project.

The 24km second Penang bridge (of which 17km will be on water) will link Penang island and Seberang Prai.

UEM Construction Sdn Bhd - a subsidiary of UEM Builders Bhd - has named port builder and bridge construction firm CHEC as its main contractor for the bridge which will link Batu Maung on the island with Batu Kawan in Seberang Prai.

The source said in setting the final cost for the second crossing project, the government has taken into consideration the rising cost of materials such as steel.

"Both parties must come to an understanding on how they are going to work things out before they sign an agreement on the price," the source added.

It is learnt that the deal will be inked by the end of this month.

The iconic bridge, which will comprise 294 piers and 9,364 sections, will be the longest in South-East Asia and expected to be opened to the public by 2011.

By New Straits Times (by Marina Emmanuel)

Amaya Suajana appeals to foreigners

Generous green space and layouts at Malton's latest high-end condo are two draws luring expats

"I like the area - it is well located and offers easy access to major localities in and around the Klang Valley," said Matsi Yamagato (not his real name) about his decision to purchase a unit at Amaya Saujana, the latest upmarket condominium taking shape in Subang's Saujana Resort locale.

"I also like the fact that the Kuala Lumpur Japanese School is next door, which is great for my children ... and that the Saujana Golf and Country Club is just across the road, which is fine with me!"

Other landmarks Yamagato is close to by opting to take up residence in Amaya Saujana include the Peremba Square Office complex, the up-and-coming Ara Damansara Township and the future Malaysia International Aerospace Centre, to be built on the former site of the Subang Airport.

"This area is rapidly evolving into an upmarket residential and commercial precinct - you don't have to be astute to recognize the potential for property values to appreciate," said Yamagato.

His enthusiasm for the project, along with that of 20 other foreign buyers, lends credence to the forecast by developer Malton Bhd that Amaya Saujana will attract the interest of expatriates.

From an investment "buy-to-let" point of view, it looks promising too, going by the prevailing rental yields in neighbouring developments.

According to Malton's sales and marketing director Tracy Lai, units in Saujana Resort can fetch monthly rents of between RM4,000 and RM5,000, and generate yields of up to eight per cent.

The RM276.1 million Amaya Saujana, being developed by Malton subsidiary Khuan Choo Development Sdn Bhd, is taking shape on 6.02 acres of freehold land fashioned to be low in density and green.

"One of its big draws is the high green space ratio surrounding the project, which appeals to foreign and local homeseekers alike," said Lai.

The three towers of 13-storeys that make up the project will accommodate 378 residential suites designed to appeal to those with a penchant for space.

The three-plus-one and four-plus-one bedroom units will be styled with semi-detached and bungalow layouts in sizes ranging from 1,569sq ft to 1,895sq ft.

Priced between RM605,000 and RM918,000, Lai said buyers can also expect units to be broadband ready and fitted with quality finishings such as porcelain tiles and laminated timber flooring, decorated plaster ceilings, eight-feet high timber doors and ensuite bathrooms in every room. All condos will also come with three air-conditioners.

Amaya Saujana will also offer lifestyle facilities and amenities, such as a cafe, garden pavilion, sauna, pools, tennis and basketball courts, gym, exercise stations and a playground.

Said an expat buyer: "What appeals to me about Amaya Saujana is that i get to feel as if I'm living in a landed home, enjoy a resort like lifestyle, but at the same time feel safe because of the security that condos provide."

The project will be equipped with a four-tier security system involving guarded perimeters, CCTV monitoring and card access at the car-park and lobby levels. Access will be limited to individual units levels and the facilities deck.

"For convenience, every unit will have a direct intercom link to the guardhouse to facilitate visitors," Lai said.

Considering that the project was only launched late last year, she said response has been "extremely positive".

"We've sold over 90 per cent of our first phase launched in November 2007, and over 50 percent of our second phase, which was only unveiled last month."

Lai added that Amaya Saujana's early buyers have already benefited from an almost 20 percent increase in prices.

"But there's still room to gain for those who buy now, as the area is continuing to blossom."

With construction currently underway, the project is due for completion by 2010.

By New Straits Times (by Chris Prasad) (Article on 1 June 08)

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