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Thursday, February 4, 2010

L&G plans to launch RM1.5b projects this year

LAND & General Bhd (L&G) expects to launch two new projects in the Klang Valley this year, worth more than RM1.5 billion in total, as it is bullish about the property sector.

The first project, located off Jalan Ampang, Kuala Lumpur, is planned for a third-quarter launch. It will feature some 1,000 units of high-end studios, one- and two-bedroom condominiums, priced above RM500 per sq ft each, as well as lifestyle and retail components.

The project will have a gross development value of RM400 million and is targeted for completion by the fourth quarter of 2013, managing director Low Gay Teck said after its extraordinary general meeting yesterday in Bandar Sri Damansara, Selangor.

"We are positive on the project as it is a niche development. There are not many products of such nature being offered within the vicinity," he said.
The project is expected to yield an estimated gross profit of RM130 million.

Elite Forward Sdn Bhd (EFSB), a 50:50 joint venture between L&G's wholly-owned unit, Synergy Score Sdn Bhd, and Forward Splendour Sdn Bhd will develop it, using internal funds and loans.

Forward Splendour is a company related to Mayland Parkview Sdn Bhd, a major shareholder of L&G.

Shareholders yesterday approved EFSB's plan to buy the 1.04ha freehold land for the project from Sazean Holdings Sdn Bhd, a firm controlled by former minister Tan Sri Abdul Kadir Sheikh Fadzir, for RM55 million.

Low said the second project, which is awaiting approvals from relevant authorities, is a residential development in Bandar Sri Damansara.

L&G will launch it in four phases, starting at the end of this year. The first phase, worth RM450 million, will feature upmarket condominiums, Low added.

L&G expects to do well financially this year. For its fiscal year ended March 31 2009, it made a net profit of RM15.2 million on revenue of RM37.6 million.

The company also has an ongoing commercial project in Bandar Sri Damansara, called 8trium. L&G expects the project, worth RM160 million, to improve profits for the next three years.

L&G is also in an acquisition mode and looking for land in the Klang Valley to add to its portfolio.

By Business Times

L&G plans niche residential project in KL

KUALA LUMPUR: Land & General Bhd (L&G) plans to launch a niche residential project off Jalan Ampang here by year-end to cater for singles, couples and expatriates.

Managing director Low Gay Teck said the project had a gross development value of RM400mil and would comprise mainly of studio units and serviced apartments.

“There is strong pent-up demand for such properties in the area,” he told reporters after L&G’s EGM yesterday.

Low said the project was expected to be completed by late 2013 or early 2014. “It will consist of about 1,000 units and would sell for RM500 to RM600 per sq ft.”

He added that L&G was confident of a good take-up rate for the project as many properties in the vicinity were valued at RM800 per sq ft.

Low said L&G had proposed to acquire a piece of land in Ampang for RM55mil cash for the project, which is expected to be developed by Elite Forward Sdn Bhd.

Elite Forward is a 50:50 joint-venture between Synergy Score Sdn Bhd, a wholly-owned unit of L&G, and Forward Splendour Sdn Bhd, a company related to Mayland Parkview Sdn Bhd, which in turn is a major shareholder of L&G.

Low said the proposed purchase of the land in Ampang for RM55mil and the joint venture for the project were well received by the majority of L&G shareholders.

“They (shareholders) asked many questions about the two proposals at the EGM but were generally supportive of the proposals,” he said.

A shareholder, who declined to be named, said he wanted to know whether the land would be purchased at fair value and in the interest of shareholders.

“We are told that despite the proposals being a related party transaction, the land will be acquired at market price and will benefit all stakeholders, including shareholders. We will see,” he said.

According to Low, property will continue to be L&G’s core business, contributing over 50% of its revenue. Other divisions in the group include education.

On its financial performance, Low said the company was expected to perform fairly well in its current financial year ending March 31.

By The Star

Ampwalk owners said to be in talks to sell property

Ampwalk, a retail-cum-office building in Jalan Ampang, Kuala Lumpur, has been put up for sale for an estimated RM85 million, sources say.

Ampwalk, located next to The Nomad Sucasa All Suites Hotel, is owned by Permata Alasan Sdn Bhd, a 50-50 joint venture between IGB Corp Bhd and Wearne Brothers (Pte).

"The board of directors recently agreed to put the property up for sale and are in talks with interested parties," a source told Business Times.

The retail component, which Permata wholly owns, measures 65,000 sq ft, while the office component measures 70,000 sq ft. Some office space have been sold to individual owners.

"The retail portion is valued at RM650 per sq ft, while the office component is going for RM550 per sq ft," another source said.
IGB officials could not be reached for comment.

Ampwalk has been in operation since 1997 and was developed by a joint venture between IGB and Wearne. The entire building is said to be worth some RM120 million.

Industry sources said that the decision by IGB to sell is to recoup its investment and use it for future developments.

IGB operates the MidValley Mega Mall through a 75 per cent stake in Krisassets Holdings Bhd. It also owns the more recent The Gardens mall and also owns and manages several office buildings in Kuala Lumpur.

In 2008, IGB sold its 30 per cent stake in Gleneagles Hospital (Kuala Lumpur) Sdn Bhd, as part of its plan to divest non-strategic investments. It has also made known that it is keen to dispose of half of its interest in the 910-room Renaissance Hotel Kuala Lumpur.

By Business Times

Resorts Sentosa expects 13m visitors

RESORTS World Sentosa, the Genting Group's latest and largest family destination in Singapore, expects 13 million visitors in its first year of operations.

The resort, spanning over 49 hectares on Sentosa Island, is built at a cost S$6.45 billion, and is Genting Group's most expensive, most exquisite and ambitious project.

Schduled to open soon, Resorts World Sentosa will be home to Southeast Asia's first and only Universal Studios theme park, six luxury hotels, marine life park and a casino, among others.

The Festive Hotel, Hard Rock Hotel, Crockfords Tower and Hotel Michael opened to the public on Jan 20, 2010.
Visitors to Universal Studios alone are expected at 4.5 million per year, said Resorts World Sentosa Pte Ltd Assistant Director Communications Robin Goh to Malaysian reporters on a familiarisation trip to the resort recently.

The first weekend opening to the public saw the resort commanding more than 90 per cent hotel occupancy, mostly local guests.

Goh said the resort expected more foreign visitors when Universal Studios and the casino opens.

"Preparation work is almost done at Universal Studios and the park's operation team are gearing up for the opening.

"We have not got the casino licence yet and are working closely with the authorities to obtain all necessary licences.

"The date depends on certain factors as safety is our number one priority," said Goh.

As for Malaysian visitors, he said: "The Malaysian market is very important to us. After all, we are a Malaysian group and we want all Malaysians to be part of this (resort).

"We also want Malaysians to come and enjoy all the offerings, including Universal Studios, and be proud because this resort is built by a Malaysian company," he said.

For the convenience of prospective visitors from Malaysia, the resort has tied up with Malaysian travel agents who can facilitate their trip and offer them better rates.

"They (Malaysian travel agents) have different packages to offer which include transport (by air or bus), hotel accommodation and universal studio tickets.

"We also have a Malaysian bus programme which brings people from different states in Malaysia straight to Resorts World Sentosa," he said.

By Bernama