Malaysia Property News is a free resource website sharing Daily Property News & information about Property in Malaysia, which related to, Property Market, Property Investment, Commercial Property , Hot Properties Malaysia, Real Estate, Retail Shop, Business Park, Condominium Malaysia, Terraces & Apartment Malaysia, Houses, Residence, Resort and many more.

Tuesday, November 24, 2009

DNP to launch 'Le Nouvel' luxury condo by early 2011

DNP Holdings Bhd, a property development and investment group, will launch its most expensive residential project dubbed "Le Nouvel", worth an estimated RM1 billion, in Kuala Lumpur by end-2010 or early 2011.

Le Nouvel comprises two residential towers with 43 and 49 floors respectively, offering a total of 197 condominium units ranging from 1,800 sq ft to 4,700 sq ft. The towers will be built near Avenue K on Jalan Ampang.

"We have the approvals to do the project, but the current market conditions are unfavourable to a launch. A better timing would be a year from now," said DNP company secretary and general manager for treasury and accounts, Lee Kong Beng, after the company's shareholders meeting yesterday in Sepang.

Lee told Business Times that DNP may sell the buildings enbloc if it receives good offers.
"If somebody offers something we can't resists, then we will go for it. Otherwise, our plan is to sell the units individually," Lee said.

He declined to say how much each unit will be priced. Based on rough calculations if the market price maintains at RM2,200 per sq ft, each unit could sell for RM4 milion to RM11 million.

Lee also said DNP's immediate focus is to launch 25 units of luxury condominiums in a five-storey block along Jalan U-Thant, Kuala Lumpur, for some RM200 million, in three to six months from now.

DNP will also launch Block B and D of Verticas Residences in Bukit Ceylon, Kuala Lumpur, pending sales of Block A.

Verticas has four blocks, worth some RM800 million. Blocks A, B and C have 43 floors each, with 417 condominium units in total. Block D is a low-rise block offering only six units.

DNP has sold Block C to Kualiti Gold Sdn Bhd, a joint controlled entity, for RM139.7 million cash, while 100 units in Block A have been taken up since its soft launch in July.

"There are 67 units left in Block C. Once we have sold them, we will launch Block B and D immediately. This may happen early next year," Lee said.

Lee said he is confident that DNP will do better this year given the new launches and the market improving.

For the first quarter ended September 30 2009, DNP posted a net profit of RM9.81 million, up 23 per cent over the same quarter last year.

DNP, which has total assets worth RM936 million, is buying more land to expand its business and enhance shareholders' value, Lee said.

In a filing to Bursa Malaysia yesterday, DNP said it has bought 3.76ha of leasehold land in Bandar Sunway, Petaling Jaya, from an unrelated party for RM56 million cash.

Lee said DNP may build shop offices on the land, but plans are still preliminary.

By Business Times (by Sharen Kaur)

'China should stop property stimulus now'

BEIJING: China should immediately halt some of its real estate stimulus policies, or risk inflating a bubble that in its bursting would wreak financial and even social trouble, a central bank newspaper said yesterday.

Debate is heating up in China about whether and how to wind down loose monetary policy and heavy spending, with officials voicing worries about asset price rises but also fearful that the broader economic recovery remains fragile.

An opinion piece in the Financial News, a newspaper published by the central bank, said rampant speculation in the country's property market was akin to a time bomb that could threaten future growth.

"If China does not exit its stimulus policy... property prices and the market may go out of control," it said.
China's housing prices have been rising since March propelled by a slew of government measures, from lower downpayments and mortgage rates to tax cuts.

Rising prices have encouraged developers to break ground on new projects, with real estate investment up an annual 18.9 per cent in the first 10 months of the year, compared with a mere 1 per cent rise in the first two months.

While the government has welcomed this surge in building activity, which is an important pillar of the economy, some officials now worry that property development is outstripping end-user demand in some locales and that prices are not affordable for ordinary citizens.

The article noted that expectations of a wind-down in stimulus policies were, in part, driving current transaction levels. November, traditionally a slack month, had been busy as people front-loaded purchases before a value-added tax exemption expired at end of the year, it said.

Separately, a senior government researcher said that China had to place the prevention of asset bubbles at the centre of any exit strategy it devises for its broader stimulus policies.

He Fan, an economist at the Chinese Academy of Social Sciences, a top think tank in Beijing, said if the central bank raised interest rates too early, it might only serve to suck in speculative capital from abroad and drive asset prices still higher.

But if Beijing moves too slowly to absorb the vast liquidity sloshing around the economy, asset markets will turn frothy on domestic momentum alone, in turn drawing in hot money from abroad, he said in a research note.

Targeting the exit strategy at problem spots will be the way to handle this dilemma, by, for example, suppressing property price rises or slowing the pace of loan growth, he said.

But China should not tighten its fiscal policy, according to Chen Dongqi, deputy head of the macro economic research institute under the National Development and Reform Commission, China's powerful economic planner.

The People's Daily quoted Chen as saying that China must continue to implement large-scale spending for several more years to build up its social security system and stimulate consumption.

By Reuters

TA Global aims to develop more properties in Canada, Australia

KUALA LUMPUR: TA Global Bhd, the newly listed property development arm of TA ENTERPRISE BHD (TAE), is looking at further property development in Canada and Australia, beyond the current three hotels and one commercial building it has in the two countries.

From left: TA Enterprise Bhd (TAE) managing director and chief executive officer Datin Alicia Tiah, TAE deputy CEO Tiah Joo Kim and TA Global Bhd executive chairman Datuk Tony Tiah witnessing the listing of TA Global, TAE’s property arm, on Bursa Malaysia yesterday.

TA Enterprise Bhd managing director and chief executive officer Datin Alicia Tiah said TA Global is actively looking at more than just hospitality in the two countries.

“We are looking at more than the hospitality industry in the two countries. If we decide to do something, future projects in Canada or Australia would most likely take the form of joint ventures,” Tiah told reporters after the listing of TA Global on Bursa Malaysia yesterday.

In Canada, TA Global’s business assets include Terasen Centre, a 24-storey office building in downtown Vancouver, and the 193-room Aava Whistler Hotel in Whistler, a resort town north of Vancouver. In Australia, it owns the Radisson Plaza Hotel in Sydney and The Westin Melbourne Hotel.

TA Global, which was given free to shareholders of TAE as part of the group’s move to unlock value, debuted at its par value of 50 sen per share. It closed at 47.5 sen, 2.5 sen lower on a volume of 38.73 million.

Commenting on the performance of TA Global, Tiah said that the listing price was within expectations. “I would say that a lot of the shareholders got TA Global for free from their holdings in TAE. The weak holders are the ones selling now,” she added.

In the initial public offer exercise, shareholders of TAE received three TA Global shares with three irredeemable cumulative preference shares, for every five TAE shares.

“What is important is what investors think of TA Global in terms of potential. Right now, we do not have a lot of development projects launching this year.

“But next year we will be launching our Seri Suria, U-Thant and hopefully also Dutamas,” said Tiah.

Seri Suria is a shop office, office tower and serviced apartment development in Sungai Buloh, Selangor worth an estimated RM517 million in total gross development value (GDV), to be completed in October 2017. Its U-Thant project is a low-rise condominium development in Kuala Lumpur with a GDV of RM106.5 million to be completed by March 2013 while Dutamas is a residential development in Mont’Kiara, Kuala Lumpur to be completed by April 2013.

Tiah said that the first phase of development from one or more of these three projects would be launched by the third quarter of next year, adding that economic conditions would be better by next year and “there is some pent-up demand in the (KLCC) area”.

TA Global executive chairman Datuk Tony Tiah, speaking prior to the debut of the stock yesterday, said that since its listing 19 years ago, TAE has grown from being a pure financial services company into a group with interest in property development, property investment and management in five major cities across continents.

“It is appropriate at this time therefore to spin off the property arm so that TA Global can focus on property development and management.

“We are optimistic that with this restructuring, investors can better ascertain and access the merits, prospects and performance of TA Global. On listing, TA Global will immediately — in terms of market capitalisation — be one of the leading property companies in Malaysia,” he said.

He added that the group’s winning formula has been to acquire and develop land only in prime localities.

He highlighted a prime development asset of 48.06 acres (19.45ha) freehold commercial land in Sri Damansara, which was ripe for development into an iconic business, commercial and residential centre.

“We will continue to pursue this strategy,” he added.

By The EDGE Malaysia (by Loong Tse Min)

Lukewarm debut for TA Global

Property firm opens at par before shedding 5% at the close

KUALA LUMPUR: TA Global Bhd made its debut on the Bursa Malaysia main market yesterday, the same day its holding company TA Enterprise Bhd was listed 19 years ago on the main board, closing at 47.5 sen, down 5% from its offer price of 50 sen.

TA Global executive director Datuk Mohamed Abid (left), Datin Alicia Tiah and executive chairman Datuk Tony Tiah (right) at the listing ceremony on Monday.

The second most active counter for the day traded at a high of 51 sen and low of 47 sen. Some 387 million shares changed hands.

TA Enterprise managing director and chief executive officer Datin Alicia Tiah said the 50 sen opening price was “within expectations”.

“Some analysts say that TA Global is worth much more. I would say that a lot of shareholders are getting TA Global shares for free from their holding of TA Enterprise shares. I would say weak holders are the ones selling now,” she told a press conference.

The company’s initial public offering (IPO) of 460 million 50 sen shares comprised an offer for sale of 90 million shares allocated to the bumiputra public, 360 million shares for approved bumiputra institutions and investors and 10 million shares to eligible directors and employees of TA Global group and TA Enterprise group.

TA Enterprise shareholders received three TA Global shares and three preferred shares for every five TA Enterprise shares held. The preferred shares are valid for five years and are convertible from year three onwards. After the listing, TA Enterprise will have a 57.3% stake in TA Global.

TA Global is the property division of the TA Group with its primary businesses of hotel operations, property management, investment and development.

Tiah said what was important was what investors thought of the company’s potential.

“Right now we don’t have many development projects. Next year, we will be launching Seri Suria, U-Thant and hopefully Dutamas,” she said adding that these projects were scheduled to be launched earliest by the second quarter.

She said the company was actively looking to partner local and foreign landowners for projects.

“Our two main targets will be Canada and Australia because TA already has a presence there,” she said. The Avaa Whistler Hotel in Canada was scheduled to open on Nov 26 and be “in full swing by the Winter Olympics in January 2010”.

“We are looking to do more things there because we have enough local knowledge to be a success. Australia is another country we are interested to explore further other than just having a hotel as a passive investment. We are actively looking to see if we can do something more than hospitality,” she said.

In Australia, TA Global owns the Radisson Plaza Hotel in Sydney and Westin Melbourne. It also owns Terasen Centre in Vancouver, Canada.

On whether the company had plans to acquire more hotels, Tiah said : “If all things go well, we will be making an announcement at the end of the year. We are still negotiating the terms.”

By The Star

KPJ sets revenue target

KPJ Healthcare Bhd, the healthcare division of Johor Corp (JCorp), expects revenue to hit a record RM2 billion in 2012 with more hospital openings.

Its chairman Tan Sri Muhammad Ali Hashim said the group is confident of achieving the target based on the favourable performance of the JCorp Group and other business strategies including the opening of more hospitals.

"We now have 19 hospitals nationwide and are in the process of identifying locations for new hospitals," he said after the opening of the new KPJ Penang Specialist Hospital by Penang Yang di-Pertua Negeri Tun Abdul Rahman Abbas in Bandar Perda, Penang, yesterday.

Muhammad Ali said the group has been recording strong financial growth with a revenue of RM1.4 billion last year.

Under the expansion plan, KPJ Healthcare is looking at either acquiring existing private hospitals or building new hospitals.

By Business Times (by Adie Suri Zulkefli)