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Monday, June 20, 2011

Malaysian developer seeks Asian partners

Malaysian-born property developer Maha Sinnathamby is looking for more development partners to accelerate his vision of completing his world class city in Australia.

Sinnathamby bought 2,860 hectares of land 26km west of Brisbane and has been transforming the timber plantation in Springfield into a city over the past 20 years.

Terry Honan, the business development executive from the company, is attending the Real Estate Investment World Conference in Singapore this week to identify potential development partners.

"The development potential at Springfield is huge with more than 9,000 residential lots further to be developed and 23,000 apartments to be built in the City centre," Honan told Bernama.

"With approval for over one million square metres of commercial and retail development space, the project provides an opportunity for major overseas developers to secure a huge development pipeline over a long period of time."

DTZ property consultants have been engaged to assist Springfield to find the right partners and the firm believes that Springfield is a good opportunity for major development companies.

"This project is unique and very ambitious but the hard work in building the major infrastructure is just about completed," DTZ said in a statement.

The city building project has reached a critical mass of 22,000 residents and a workforce of 8,000 people. The projected population of Springfield City is 130,000 by 2030.

The city is the hub of an area known as the western corridor and is one of the fastest growing areas in Australia.

The highway network to the project has been completed and the Queensland state government will complete the railway line and two stations in Springfield by 2013.

The Springfield Central Station will be a major station with regional bus connections at built cost of A$70 million.

Over 20 hectares of the project has been designated for Education City and is the home of the University of Southern Queensland and technical colleges.

Next to Education City is a further 52 hectares designated for Health City and will include a major hospital with 1,200 beds and all related health services.

By Bernama

Property development industry not yet ready for new accounting practice

Workers at a construction site in Kuching. The new IFRIC 15 rule allows developers to report only revenue from completed projects in their final statements.

KUALA LUMPUR: The property development industry is not yet ready for a new accounting practice that recognises revenue based on project completion, said Real Estate and Housing Developers' Association Malaysia (Rehda) president Datuk Seri Michael Yam.

Yam has suggested a delay in the new ruling under the International Financial Reporting Interpretations Committee (IFRIC) 15, which is to be implemented on Jan 1, 2012.

Speaking at a briefing on Saturday, he said industry players were worried because a new common revenue recognition standard, called the New Revenue Standard (NRS), was yet to be finalised even though there were just six months to go before IFRIC 15 was to be implemented.

The Malaysian Accounting Standards Board (MASB) had said last year that the NRS was expected to subsume IFRIC 15 requirements.

IFRIC 15, which is supposed to take effect on July 1 last year, states that developers can only report revenue from completed projects in their final statements. No revenue is to be declared while the project is ongoing.

MASB had deferred its implementation date to 2012 after opposition from industry players last year.

This was to allow further deliberation on how the new ruling would affect the industry and give it an opportunity to receive feedback on the NRS.

Yam said it would be counter-productive and cause investor confusion if the IFRIC 15 was implemented before the NRS was finalised.

“In the event that the NRS is not finalised by Jan 1, 2012, we hope MASB will consider further extending the timeline for implementation,” he said.

He said MASB should allow the continued use of the current accounting practice which used the percentage-of-completion (POC) method.

Yam said the current system, where developers report profits progressively, was most suited to the local industry.

“In this part of the world, it is a fantastic delivery system where buyers' money are used to build and deliver the houses progressively,” he said.

“Even under the NRS, the POC method appropriately reflects the present business, legal and regulatory framework in Malaysia,” he said.

Yam advised Rehda members against early adoption of IRFIC 15 as there was still no consensus on proper application of the standard.

“Without proper guidance and clear consensus on the proper interpretation of IFRIC 15 in the Malaysian context, premature adoption can only cause confusion,” he said.

Yam said the International Accounting Standards Body (IASB) and MASB needed to consider Malaysia's delivery system in formulating the new standard.

“(They should) Come up with something in line with the way we deliver our products and recognise profits,” he said.

Yam expressed appreciation that Rehda had been afforded opportunities to present its views on the NRS to both IASB and MASB.

By The Star

RM10bil for redevelopment

The urban regeneration programme in Petaling Jaya, which will see redevelopment projects in prime areas over the next five years, is estimated to cost RM10bil, said Petaling Jaya city mayor Datuk Mohamad Roslan Sakiman.

Urban regeneration was one of the six economic stimulus packages adopted by Selangor last year to tackle recession and is aimed at creating jobs and generating income as well as making the city vibrant.

“This is still in the pipeline. It will see new projects comprising hotels, condominiums and other commercial developments,” Roslan said after attending Petaling Jaya’s fifth City Day celebration at Petaling Jaya Stadium.

Roslan was referring to the projects that were being planned by the Selangor Development Corporation (PKNS), which was said to be involved in projects such as PJ Sentral Garden City and PJ Elevated City.

“All these projects are planned as sustainable development that will provide more jobs in the next five years.

“As Petaling Jaya is not the state capital, we have to strive harder on our own to find allocations for development,” he said.

He also said there were 138 registered residents associations with the Petaling Jaya City Council (MBPJ).

“We provide RM2,000 as a yearly contribution to each association,” he added.

Roslan has been quoted in a national Malay daily as saying that the emphasis on physical development would provide a new look for Petaling Jaya, adding that the redevelopment projects would strengthen this city and fulfill the modern lifestyle needs of its denizens through the increase of infrastructure, utilities and public facilities.

The two-day anniversary celebration saw a hive of activities taking place. They included a street food carnival, classic car convoy, street soccer tournament, sand art, colouring contest, cooking competitions and a self-defence demonstration.

Selangor Mentri Besar Tan Sri

Abdul Khalid Ibrahim was the guest of honour at the closing ceremony held in the stadium yesterday night that also saw a marching band competition.

To mark Petaling Jaya City Day, Roslan also announced that MBPJ was offering free parking today at the lots owned by the council.

Other activities lined up are the PJ RC Powerboat and Mountain Bike Challenge 2011 on June 25 and 26, and the inaugural Petaling Jaya Green Personality Award. For details, go to

By The Star