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Thursday, April 29, 2010

SunCity positive on sales of Australian project

Sunway City Bhd (SunCity) is building logistics and distribution centres at its RM1.1 billion industrial park project in Australia and it is positive on sales.

"Looking at currency appreciation, the economy is doing well. Industrial land price dropped more than 30 per cent in 2009 to A$225 per sq metre (A$1 = RM2.95). It is improving," said SunCity international property development division managing director Ngian Siew Siong.

SunCity and Australand Property Group are developing the project known as Wonderland Business Park on 120ha.

Construction started this year and the project is due for completion by 2014.

Ngian told Business Times that the company has sold one distribution centre to Best & Less, a retailer for A$44 million.
"We are negotiating two more deals. One local Australian company plans to buy a logistic and distribution centre and the other company wants to lease a separate building," Ngian said.

SunCity ventured into Australia in 1997 when it bought 220ha of land, which partly housed the Wonderland Sydney Theme Park in 1997.

Around mid-2000, the company closed the park and sold 100ha to a local institution and to Australand, which is controlled by Singapore's CapitaLand.

In 2005, it signed a joint venture with Australand to develop the remaining 120ha.

"We are proud of this venture. We may consider more developments in Australia," Ngian said.

SunCity targets to have 30 per cent of its net profit from overseas projects by 2015, from some 5 per cent currently. Its focus is on India and China, Ngian said.

The company has two joint-venture projects each in India and China, worth almost RM8.3 billion collectively.

Its project in China is Sunway Guanghao in Jiangyin, which will be launched in May or June. It comprises medium-end condominiums and specialty shops.

SunCity also has 110 acres to develop at the Tianjin Eco-City eco-themed integrated project. It will launch the project early next year.

In India, it plans to build Sunway Opus Grand Residency in Hyderabad, comprising more than 3,000 condominium units.

It will also build 1,500 units of condominiums on a 14-acre site near Hyderabad starting next year.

"The combined population in India and China is 2.5 billion so it is a huge market as house ownership is still very low. There is strong emerging middle class," Ngian said.

By Business Times

SunCity property investment unit to provide half of group's profit

SUNWAY City Bhd's property investment division will continue to provide half of the group's net profit as new projects come on stream this year.

The developer is planning to launch the RM1.5 billion Sunway Velocity integrated commercial project in Cheras, which will have a 800,000 sq ft shopping mall, shop offices and serviced apartments.

It will also start building the Lost World Hotel in Ipoh, Perak, two office towers and an apartment for nurses of Sunway Medical in Bandar Sunway, Selangor.

In addition, it will start expanding its Sunway Pyramid mall.
These properties are worth more than RM600 million, managing director for property investment, Ngeow Voon Yean told Business Times.

"Market optimism is coming back and all indicators point to a recovery to a certain extent," Ngeow said.

The division now owns and manages RM4.7 billion worth of properties. They include Sunway Pyramid Mall, Sunway Carnival Mall, Sunway Giza, Menara Sunway, Sunway Tower, The Banjaran Hotsprings Retreat and two universities.

Ngeow said hotel revenue is set to rise as the economy improves and there are more meetings and exhibitions taking place.

"Our hotels are doing well with room bookings and functions giving us a good indication that business travellers are back. We hope to close the year at an average 78 per cent occupancy for all our operating hotels and resorts," Ngeow said.

SunCity owns Sunway Resort Hotel and Spa, Sunway Georgetown, Sunway Seberang Jaya, Sunway Hanoi, Sunway Pnomh Penh and the Banjaran, which collectively has 2,000 rooms.

It manages Allson Angkor Paradise, Allson Angkor Hotel, Golden Diamond hotel and Allson Medan Tuanku.

By Business Times (by Sharen Kaur)

Sunway to buy Selangor land

SUNWAY Holdings Bhd plans to buy 33.37 acres of leasehold land in Taman Equine, Bandar Putra Permai, Selangor, from Taman Equine Riding Sdn Bhd for RM37.8 million.

It intends to build semi-detached and bungalow villas on the land, which has an indicative gross development value of RM250 million and is scheduled for launch in early 2011.

Sunway Holdings, via its subsidiary SunwayMas Sdn Bhd, yesterday entered into a sale and purchase agreement with Taman Equine for the acquisition.

"With this acquisition, Sunway Holdings' total land bank now stands at 440 acres with a GDV of RM2.2 billion," said Sunway Holdings managing director Yau Kok Seng in a statement yesterday.

The group is expected to launch some RM800 million worth of property projects in Malaysia, Singapore and China this year.

By Business Times

A case of once bitten, twice shy for SelProp

Selangor Properties Bhd (SPB) will stop investing in global property funds after losing money on previous bets.

SPB, one of the largest landowners in Damansara Heights, Kuala Lumpur, had invested some RM300 million in 2006 in several funds managed by foreign banks.

"We thought we could make more money but the value started to drop. We have RM88 million in the funds now and the valuation has improved. We will sell when we think it is right," SPB financial controller Lee Boon Kian said.

The group has sold some of its investments but it made provisions of RM77 million in 2009 to account for the lower value of its investments.

Speaking after the company's annual general meeting in Kuala Lumpur yesterday, Lee said SPB may set up a real estate investment trust. It is now building its property portfolio.
Its current portfolio includes Menara Milenium, Wisma Damansara, Kompleks Pejabat Damansara, Wisma HELP and SPB Towers. It also owns half of the Claremont Shopping Mall in Australia.

The book value of the assets, which yields 7 per cent to 8 per cent returns annually, and its 104ha vacant land in the Klang Valley is valued around RM1.3 billion.

SPB may redevelop and upgrade some properties like Wisma Damansara.

"We have RM600-odd million cash in hand and will use part of it for the plan and also to manage our new and existing property development projects in Kuala Lumpur and Australia," Lee said.

SPB holds 51 per cent of Help International Corp Bhd, a private university college. It is building a main campus for HELP University College in Subang 2.

It is also bullish on the property sector and hopes to do better in its next fiscal year ending October 31 2011 as it has several new launches coming up in the second half of this year.

SPB is launching Batai Condominium, a 20-storey tower with 107 units worth around RM350 million, at Jalan Batai, Damansara Heights.

It will also launch new houses at its Bukit Permata and Selayang Mulia projects in Gombak and Selayang.

By Business Times (by Sharen Kaur)