New record for KLCC property prices

PETALING JAYA: A new record for property prices in the heart of Kuala Lumpur is close to being set after two penthouses of the world-class Four Seasons Place were reserved at a whopping RM37mil each, sources said.

This works out to a princely price of RM3,026 per sq ft based on the 11,900 per sq ft size of each penthouse, outpacing the RM2,900 per sq fe record held by The Binjai On The Park based on a transaction last year involving 4,000 sq ft in Tower A of the development.

However, the Binjai project would still hold the record for the highest absolute price transacted for a residential property at RM38mil for one of its triplex penthouses sold in 2010.

The size of that Binjai penthouse was, incidentally, 14,300 sq ft, giving it a price of RM2,660 per sq ft.

The buyers of the two Four Seasons Place penthouses had reserved the units “a few years ago”, when the project was in its planning stage, the sources told StarBiz.

They added that when the project was launched by Prime Minister Datuk Seri Najib Tun Razak in early February, the same buyers had quickly reaffirmed their seriousness in purchasing the penthouses.

The Four Seasons Place is being developed by Venus Assets Sdn Bhd, with a gross development value of some RM2.8bil. It is a joint venture between tycoon Datuk Ong Beng Seng, the Sultan of Selangor, Tan Sri Syed Yusof Syed Nasir and Venus Assets director Datuk David Ban.

Venus Assets bought the prime 1.05ha site for RM90mil in 2003 from the estate of the late Khoo Teck Puat, the former major shareholder of Standard Chartered plc.

The sales office of the Four Seasons Place is in the process of securing the booking and down payment for these units.

The company had yet to respond to StarBiz's queries as at press time.

Situated side-by-side on the 63rd and 64th floors, the penthouses are shell units, the property lingo for units minus any developer-built fixtures.

The sources said that one of the eight duplexes in the Four Seasons Place had been sold at RM2,750 per sq ft at an absolute price of RM20.3mil. The remaining seven duplexes have all been reserved.

There are 65 storeys in the Four Seasons Place, with a “height premium” of RM25,000 to RM30,000 for every floor going up.

“Some 50% of the 242 residential units of the Four Seasons Place have been booked. They payments are coming in now, with 20% of down payments having been collected so far. It would be open to the public for sale from the third week of April,” revealed the sources.

The sources added that surprisingly, most of the buyers were well-heeled Malaysians. The smattering of foreign buyers included Japanese, Hong Kong nationals and Taiwanese.

The Four Seasons Place in Kuala Lumpur is the first Four Seasons Place in South-East Asia. It consists of 11 storeys of hotel space, beginning from the eighth floor to the 18th floor. It also has five floors of retail outlets, three floors of serviced apartments, three floors of private carpark and four basement storeys. A 65-storey luxury hotel, residential and retail project in the vicinity of the Petronas Twin Towers in Kuala Lumpur City Centre, it will house the 231-room Four Seasons Hotel, 242 units of private residences and 300,000 sq ft of upscale retail space.

By The Star

Ipoh condo project among top SEA property award winners

SINGAPORE: A condominium development in Ipoh has been named Malaysia's Best Condominium at a property event here that gathered a host of high-flying professionals and companies from the luxury residential property sector from all over the region.

The Haven Lakeside Residencies development was among four Malaysian entries that shone at the annual South-East Asia Property Awards 2012 here on Friday night.

The project, developed by The Haven Sdn Bhd and launched in January last year, comprises three luxury condominium towers overlooking a natural lake and scenic limestone hills.

An added attraction is a limestone rock said to be 280 million years old and standing about 14 storeys high, according to The Haven Sdn Bhd chief executive officer Peter Chan.

The other Malaysian winners at the awards night were Sunway Bhd (Best Malaysian developer), The Residences, Putra Heights, developed by Sime Darby Property Bhd (Best Malaysian villa) and Savills Rahim & Co (Best Malaysian property consultancy).

More than 370 guests from around the region including Thailand, Vietnam, the Philippines, Cambodia, Indonesia and host Singapore joined the gala dinner which saw 35 awards given out for various categories, including developer, development, real estate service, architecture and interior design.

Jose E.B. Antonio, chief executive officer of Philippines-based Century Properties Group Inc took the coveted Property Report Real Estate Personality of the Year award.

Chan, in his acceptance speech on behalf of The Haven Sdn Bhd, said he was happy to receive the award for Ipoh.

“It shows Ipoh can win prestigious international awards because the city is truly attractive.

“Its potential has not been recognised and has been under-rated for too long.

“We hope with this recognition, the awareness of Ipoh will be awakened that Ipoh can produce a condo development that is recognised as the nation's best,” he said, adding that his company had won seven other awards in the past.

Event organiser Ensign Media CEO Terry Blackburn, in his congratulatory address, said: “We have seen some real world-beating developments awarded here that really represent the full gamut of what South-East Asia real estate has to offer.”

Over 1,400 nominations were received, with over 300 entries in the hotly contested Best Condominium awards for Malaysia and Singapore.

By The Star

Stratified developments becoming a way of life

As stratified developments become a way a life, good maintenance and management have become an issue.

EARLIER this year, a new set of property managers replaced the previous one in the condominium that Siti lives. Not having a current account, she paid her quarterly management fees in cash. She was told that the receipt would be put in her postbox. It never came and she soon discovered that the property management company had absconded with the money.

As stratified developments which include condominiums, service apartments and gated and guarded projects become a way of life, good maintenance and management have become an issue.

Good management and maintenance will improve the value of the asset. This applies to all segments of the property market, be it residential, commercial or industrial.

Hence, the third reading of the Strata Management Bill 2012 on Monday is crucial, says Assoc-Prof Ting Kien Hwa, head of Centre for Real Estate Research at Universiti Teknologi Mara.

“Currently, property management is part of a service provided by valuers, who are regulated by the Board of Valuers, Appraisers and Estate Agents.

The work of valuers can be broadly divided into three areas property management, valuation work and real estate agency work.

This means that property management is a regulated profession and delinquents risk having their licence suspended.

For the last five to six years, managing stratified properties has become an issue, he says. As more of us live in gated and guarded developments, and high rise condominium and serviced apartments, property management is evolving to become a lucrative industry.

Ting says the Board of Valuers is in the process of creating a third register to accommodate property managers. Valuers and real estate agents are governed by two registers and the Board of Valuers are working on creating a third one for property managers.

Says Ting: “This is a similar situation as in the early 1980s when there were many illegal real estate agents. They were given a one-year period to register with the board.”

Ting says the duty and responsibilities of property managers go beyond just collecting money and managing a property. The word “managing” covers a whole gamut of expertise and responsibilities. These include insurance valuation, the appropriate rate of service charges to levy on owners, managing service providers like security guards and cleaners, gardeners and managing tenants and rental rates among other duties.

Depending on whether it is a residential or commercial property, some issues may overlap.

To claim that valuers want to monopolise the property management industry is incorrect, Ting says.

“Some parties say they want to liberalise' the profession. Just as engineers and architects are regulated by the Institute of Engineers and Pertubuhan Akitek Malaysia respectively, so property managers are regulated by the Board of Valuers because property management is part of the work of valuers. This is the situation in the United States, Britain and Australia. Shall we then liberalise' the achitecture and engineering profession by allowing more people who are untrained to practise as architects and engineers because architects and engineers are monopolising' the industry?” Ting asks.

Ting says this argument to liberalise the profession and cut out the monopoly does not hold water at all.

He says there are currently 8,000 trained property managers in the country and every year, 450 more graduates enter the job market.

The local public universities provided courses in property management in the late 1960s because they knew there would be a need for this.

Malaysian Institute of Professional Property Managers president Ishak Ismail says: “The Government was visionary enough to foresee a time when stratified housing will become part of the Malaysian property landscape. The first condominium was Desa Kuda Lari in the KLCC area.

“Today about four million people live in stratified projects. About 80% of all the stratified projects are managed by joint management bodies and management committees. About 20% are outsourced and of this about 58% are managed by illegal property managers.”

Ishak said over and above the various issues that fall under property management, two sets of skills are needed the hard skills in managing the property and the soft skills in people management.

He says there is a need to put in the proper regulations to regulate property managers in order to improve the value of our property assets. There must be no conflict of interest because it involves public money, be it house owners or tenants of commercial properties, he says.

By The Star

Proposed developments near Highland Towers have residents worried over their safety

In need of assurance: The site of one of the proposed developments is located a few hundred metres from Highland Towers.

PROPOSED developments that will be constructed not far from Highland Towers and Bukit Antarabangsa, areas known for landslide tragedies in the past, have made some of the neighbourhood residents jittery. They are determined to ensure that these do not undermine their safety.

Some 100 residents attended a peaceful protest organised by the Taman Sri Ukay & Taman Hillview Special Action Committee yesterday.

The residents had submitted their objection against the two proposed developments, including one that will take place a few hundred metres from Highland Towers itself.

The latter involves the construction of five 17-storey blocks comprising 70 duplex condominium units.

The other development will be constructed near Taman Hillview entrance, comprising three 40-storey blocks of 1,000 serviced apartment units.

“We are extremely concerned that our interests are not being safeguarded by the Ampang Jaya Municipal Council (MPAJ), after finding inconsistencies in the information provided by the developers,” Special Action Committee spokesman Lee Joo Khim said.

She said the residents had attended a briefing with both developers on Oct 3 and had requested for certain documents including geotechnical reports and layout plans. The briefing was organised by MPAJ.

“In the bigger project, we found a discrepancy in the land title as it states a land size before the Government acquired part of the land to build the Middle Ring Road II.

“That will affect the plot ratio calculation,” she said.

She added that the worried residents had not received a reply from MPAJ — whether the documents were the same as the ones submitted to the council or not.

As for the other project, Lee said the developer had not given them any of the requested documents, citing legal reasons.

“They had organised a presentation on Oct 23, which was attended by the Residents’ Association Committee.

“The Special Action Committee did not attend this presentation as we felt it was pointless, seeing that we would have no way of verifying the information they presented,” said Lee.

She said the residents just wanted to know the proper procedures, guidelines and rules and that developments carried out should be within reasonable limits.

MPAJ Town Planning Department director Nizam Sahari said both development proposals had been sent to the state Environmentally Sensitive Areas Development Technical Committee for endorsement.

“This is part of the process for any slope development application. Both projects have to follow all the guidelines and laws that guide these developments,” he said, adding that the projects would be built at the foot of a slope that was privately owned.

“A properly engineered and maintained slope is safer compared to one that is left on its own,” said Nizam, adding that the estimated cost to engineer the slope was RM12mil.

Nizam also said that both projects essentially met the guidelines and legal requirements for such development, although neither had yet to be approved at this point.

By The Star

Bangsar residents want details on condo project

RESIDENTS of Bukit Bandaraya, Kuala Lumpur, are concerned over a proposal to develop a plot of land in Jalan Kapas.

The residents were called for a hearing with Kuala Lumpur mayor Datuk Ahmad Phesal Talib recently to give their views on the project.

Residents sighed with relief last year when the application, to develop a plot of land with an unstable slope in Lot 40441, in Jalan Kapas in Bukit Bandaraya, Bangsar, was rejected.

Now, the same problem has resurfaced with a fresh application for a bigger project that is being considered by the local authority.

Bukit Bandaraya Residents Association president Mumtaz Ali said if the proposal was given the go ahead, mitigating factors should be there to safeguard the surrounding residents.

“We want to know details of the project as it would affect the density, safety and security of residents in the area.

“We want to ensure that the proposed development complies with the regulations,” he said.

“We are not against development but this is a hillslope development, which is why we are concerned,” he added.

The residents were alerted about the proposed project after Kuala Lumpur City Hall (DBKL) put up an objection notice at the slope in question recently.

In the notice, the development application involves increasing the population density from 30 people per acre to 83 through the construction of two 14-storey condominium blocks with a total of 20 units with two levels of basement carpark.

The project is being developed through a joint venture agreement between the owners of the two lots, an individual and Goldhill Achiever Sdn Bhd, which is partially owned by PJX Property Sdn Bhd and is a subsidiary of SBC Corporation Bhd.

Last year, StarMetro highlighted the proposed development on Lot 40441, comprising a single 10- storey condominium block with nine units and four basement levels that would increase the area’s population density from 30 to 79 people per acre.

It was also reported that the slope had failed once in 1982 when a rubble wall collapsed while recent incidents included a landslip and water gushing out along the surface in March and May 2010 respectively.

Residents living near the plot of land and the local residents’ association are raising the same objections to the current proposed project as they did for the previous one.

Meanwhile, on the reversal in decision made by DBKL pertaining to conversion of residential premises for commercial use in the area, Ali said it would make matters worse if the premises were allowed to be converted for commercial use.

“If the premises are converted to commercial, parking will become even worse with more customers parking all over the place and in the neighbouring roads as what is happening now. So there is no justification with the indirect creeping in of commercial activities in the residential housing estate,” Ali said.

Ali added that the residents did not see the rationale in the argument put forward by parties who claim that there was a need to go commercial as DBKL had issued summonses for illegal parking when people came for prayers.

“In other words, does that mean when the residential premises have been converted for commercial use, one can go ahead and make illegal parking and summonses will not be issued?” he asked.

A group of residents who claimed that DBKL had allowed 20 houses near the Bangsar Shopping Complex (BSC) to be commercialised has caught residents in Bukit Bandaraya by surprise.

The residents want DBKL to explain why they were kept in the dark on the decision to go against their previous agreement made at the One-Stop Centre meeting recently.

By The Star

Lido Boulevard work starts, first launched in 2013

KUALA LUMPUR: Work on the Lido Boulevard project in Johor worth over RM4 billion has started with Lido Residences being the first component to be launched.

Central Malaysian Properties Sdn Bhd (CMP) chief executive officer Khoo Boo Teng said mitigation works at the project site started in July, and would be completed in the next two months.

Khoo said CMP is planning to launch Lido Residences by early next year and it is upbeat on sales.

Lido Residences comprises eight blocks of 18-26 storey condominiums with 908 fully furnished units, ranging from 2,459 sq ft to 9,089 sq ft. The units are priced over RM2 million each, or around RM1,300 per square foot.

"We are targeting foreign markets like Asean and Europe. We have a lot of enquiries and are confident of launching it next year," Khoo told Business Times.

Overlooking the Straits of Johor, the 50ha Lido Boulevard is an integrated residential and commercial development that spans 2.4km along the Tebrau Straits coastal line.

The project is located within the Iskandar region and nearby Johor Baru's Central Business District, the Customs, Immigration & Quarantine (CIQ) complex, Johor Baru's railway station and the Johor Baru-Singapore Causeway.

Lido Boulevard is one of the biggest privately-financed initiatives in Iskandar. The project is a joint venture between CMP and the Johor state government, the landowner.

CMP is a private property developer majority-controlled by Berjaya Group's Tan Sri Vincent Tan Chee Yioun.

Besides Lido Residences, the project will feature serviced residences/hotel, office suites, a mall, an art and cultural centre and The Gardens.

Lido Boulevard was introduced in 2007 and was approved by over 30 departments and agencies and the Malaysia-Singapore joint-committee on the environment.

The detailed Environment Impact Assessment studies were approved in May 2008 and the Environmental Management Plan in March 2009.

The project was said to be abandoned after a portion of the land, which had been reclaimed, caved in, resulting in loss of a life, in November 2010.

Khoo said mitigation works are being carried out in accordance with the environmental guidelines. The works involve rigging out the sea area it will reclaim with sheet piles to prevent waste and debris from getting into the straits.

"Work at the project site is focused on putting in place all prescribed environmental mitigation work measures to ensure full compliance with our Environmental Management Plan," he added.

By Business Times

SDB adopts its own approach

Sitting in the vicinity of Bandar Tun Hussein Onn, Windows on The Park will be one of the few in the area which is still surrounded by greeneries.

WHILE it is a common strategy for most property players to have a certain amount of land bank, Selangor Dredging Bhd (SDB) has a different approach when it comes to property development.

Managing director Teh Lip Kim says: “We don't have a land bank. We buy and develop based on what is not available.

Teh: ‘You go high-rise so that there is a lot of space for trees and a park.’

“We look at the locality, income of the people and population around the area to decide what to build.”

Windows on the Park is another project that follows the company's niche to provide products with a strong concept.

Sitting in the vicinity of Bandar Tun Hussein Onn in Cheras, Kuala Lumpur, the planned high-rise residential will be one of the few in the area which is still surrounded by greeneries.

Currently, there is an 11-storey apartment developed by Yuwang Development Sdn Bhd next to SDS's showroom. Besides that apartment, Yuwang has other products like double-storey semi-detached houses, 2-storey terraced houses and three-storey shop offices in Bandar Tun Hessein Onn. Uda Holdings Bhd too has projects near SDB's site.

“We do something different and give customers what they want that is not available in the area,” Teh says.

The highlight of the project is the park which was planned before the building. “You go high-rise so that there is a lot of space for trees and a park,” she quips.

There are three parks: a quiet park, an active park for teenagers and the central park where shared amenities like the gym, swimming pool and a multi-purpose function room are.

One can tell how much emphasis the company places on the 4.2-acre park when Teh shows the landscape model even before she starts.

“We want to come out with a park that is more natural, with multiple layers of terrain as compared with a flat landscape,” she enthuses.

With the different undulation created, one would be able to see a park that resembles a jungle.

“We have a three-tier planting. When residents look down (from their windows), they see three different layers of rooftops which include three-tier planting for trees and three-tier planting for shrubs,” she elaborates.

There is a 800-metre jogging track at the park so people can feel like they're running in the jungle, she claims.

One may wonder if it costs a lot to maintain parks that cover more than 40% of the total surface area?

“We know the types of plants to choose. We even have horticulturalists to help us choose plants that are easy to maintain and does not affect the ground,” she assures.

“Retaining the park will be important because it is the concept that appeals to buyers. We don't want the trees to die after one year!” she exclaims.

The whole idea is to provide city dwellers an opportunity to own a piece of the park without having to go to a public park.

“Basically, we want people to be able to come out from the confines of their own homes to enjoy nature,” she explains.

The apartments were planned in such a way that every unit can oversee the parks surrounding them.

“To symbolise this, there are big openings in the blocks that allow visitors to see through the greeneries when they drop off someone,” she says.

As for the unit, she emphasises on spatial planning so that the space within a unit is well-balanced.

According to Teh, natural lighting is an important element in SDB's projects.

In terms of safety, the area is gated and guarded. The buildings were also earthquake resistant.

The development consists of three blocks totalling 540 units with a gross development value of RM513mil. It sits on 8.98-acres of freehold land.

Selling prices start from RM550,000 for the 916-sq-ft unit which works out to be about RM600 per sq ft. Prices go up to RM2mil for the penthouses.

The site is accessible via SILK Highway, Lebuhraya Cheras-Kajang and Lebuhraya Sg. Besi. There are two proposed MyRapid Transit stations within 4km from the project site.

By The Star

Dijaya: New projects may fetch up to RM2,500 psf

MARKET TREND: Developer upbeat on W Kuala Lumpur Hotel & Residences project

DIJAYA Corp Bhd plans to launch serviced residences in Kuala Lumpur at a whopping RM2,000 per square foot (psf) to RM2,500 psf.

Senior Dijaya Corp officials said such price is now the going rate for new luxury properties in the city centre.

"We are looking at that price range for now. There are some projects launching at RM2,500 per sq ft in the city centre. Since we are launching only next year, we may re-look the pricing then," said its executive director Koong Wai Seng.

Dijaya is developing W Kuala Lumpur Hotel & Residences at the site where the historical Bok House used to sit on Jalan Ampang.

The project encompasses a 55-storey block with the first few floors housing the six-star 150-room W Hotel, and the rest to be occupied by the residences.

There will be 353 units of the residences, with estimated gross development value (GDV) of RM900 million.

The project is slated for completion in 2016.

Koong is upbeat on sales, saying that Dijaya had received several en bloc offers for the residences.

"We are tagging on the W Hotel address, which is known worldwide," he said yesterday at the signing of Dijaya's RM500 million commercial paper/medium term notes (CP/MTN) programme.

The serviced residences are part of eight projects worth RM2 billion that Dijaya is launching between the end of this year and December 2013 in Kuala Lumpur, Kajang, Subang, Kota Damansara, Johor Baru and Kota Kinabalu.

The signing of the CP/MTN follows the completion of the company's amalgamation exercise in August involving the injection of RM1 billion worth of properties held privately by Dijaya chief executive officer Tan Sri Danny Tan Chee Sing.

The exercise helped Dijaya increase its landbank to 365ha in the Klang Valley, Johor, Penang and Sabah and which is to be developed over 10 to 15 years with a GDV of RM38 billion.

Dijaya deputy managing director Dickson Tan said part of the RM500 million (CP/MTN programme) will be used to develop projects and fund its expansion.

Dickson Tan said Dijaya is looking to acquire smaller developers and companies with sizeable landbank to become one of the country's biggest developers.

"Merger and acquisition is the next target for us to grow the company's business. There are several parties currently soliciting and talking," he said.

RHB Investment Bank Bhd and AmInvestment Bank Bhd are the joint lead arrangers/joint lead managers for the debt programme.

By Business Times

Dijaya is confident of selling W Residences at RM2,000 psf

PETALING JAYA: Dijaya Corp Bhd is planning to price its W Residences service apartments at RM2,000 per sq ft (psf) when it launches the 352 units next year and this will also be one of the higher pricing for service apartments in Kuala Lumpur in recent times. Dijaya is confident that it will receive strong interest.

The most recent service apartment that has been transacted at an average price of RM2,500 psf is the Banyan Tree Signatures, developed by Lumayan Indah Sdn Bhd. Upon its launch earlier last month, all 173 units were already snapped up. Banyan Tree Signatures is located on a 1.46-acre plot at the junction of Jalan Conlay and Jalan Raja Chulan.

“We are very confident that we will be able to sell at RM2,000 psf. We have had en-bloc enquiries in the past. There have also been international interest. Bear in mind that our W Residences is our own product but will be on top of the W Hotel, thus tagging on to the W Hotel address,” said Dijaya's executive director Koong Wai Seng.

Situated on 1.28 acres of freehold commercial land along Jalan Ampang, the W Hotels & Residences will have 150 rooms while the residences will have 353 units.

In early 2011, Dijaya announced its partnership with Starwood Hotels & Resorts Worldwide, to develop a W Hotel in Kuala Lumpur.

Designed by Skidmore, Owings & Merrill LLP from New York, the W Hotel & Residences will be located within the Golden Triangle and is situated along Jalan Ampang, across the Petronas Twin Towers.

Meanwhile, on news that Dijaya was open to mergers and acquisitions (M&As) in the property sector, Dijaya's financial adviser Astramina Advisory Sdn Bhd managing director Wong Muh Rong said this was a natural growth strategy for the company, as the normal route of organic growth would take too long a time.

“Yes, M&A is our next target and there definitely is interest. It is, however, too preliminary to say anything now,” said Wong.

Yesterday, Dijaya executed the programme agreement and guarantee facility agreement in relation to its proposed 7-year commercial paper/medium term notes (CP/MTN) of up to RM500mil, to be guaranteed by RHB Investment Bank Bhd and AmInvestment Bank Bhd for up to RM300mil and up to RM200mil respectively.

Rating Agency Malaysia Bhd has accorded a short-term rating of P1 and long-term rating of AA2 in respect of the notes to be guaranteed by RHB Bank (tranche 1) and a short-term ranting of P1 and long-term rating of AA3 in respect of the notes to be guaranteed by AmBank.

The proceeds from the CP/MTN programme will be substantially utilised as working capital for Dijaya and its subsidiaries and also to fund development costs of new landbanks injected post Dijaya's amalgation exercise.

In the pipeline of Dijaya's upcoming launches include RM2bil worth of jobs to be launched next year. There will be roughly six launches spread out in the Klang Valley, Penang, Johor and Kota Kinabalu.

“Many of the service apartments we will be launching next year are going to be priced below RM500,000,” said Koong.

The signing (of the CP/MTN) follows the completion of Dijaya's amalgation exercise on Aug 30. Post amalgation, Dijaya's landbank has increased to 913 acres in prime locations to be developed over the next 10 to 15 years with an estimated gross development value of RM38bil.

By The Star

Weida plans luxury condos

It’s diversifying into property with two projects in Klang Valley

KUCHING: Weida (M) Bhd will embark on two high-rise residential condominium projects in Mont Kiara and Subang with combined gross development value (GDV) of more than RM600mil.

Group managing director Datuk Lee Choon Chin said the two upmarket projects were expected to have a total of some 660 units.

“The projects are expected to simultaneously get off the ground in second half-2013, and will take three years to complete,” he told StarBiz after Weida AGM here yesterday.

Lee said the two projects would be the first to be undertaken by Weida as it diversified into property development to broaden group revenue and earnings base.

He said the Mont Kiara project, which would be located near to the Garden International School and future mass rail transit (MRT) system, was to cater for both local and foreign buyers.

The Subang condominium project will be sited near a Japanese international school.

Lee said Weida, a leading provider of modern environmental engineering solutions, would incorporate green features, like energy and resource conservation, in both projects. “The design of the condominium units will be more friendly to environment living.”

The environmental engineering solutions provided by Weida group cover water and wastewater infrastructure, products and services; trenchless mapping, investigation and rehabilitation of buried utility assets; design-and-build, operation and maintenance of water and wastewater treatment plants. Others are renewable energy and environmental conservation as well as rural water, sanitation and renewable energy facilities.

Lee said the group was currently constructing a biogas plant and other wastes treatment facilities costing some RM93mil for an integrated centralised pig farm in Lubok Antu, Sarawak. The plant, which is expected to be ready next year, is one of the largest applications of biogas technology in Malaysia's livestock farming.

It has the capacity to generate up to four megawatts of electricity using the biogas produced. The electricity could be used internally or uploaded to the state's power grid.

On oil palm development in Tatau, Bintulu Division carried out by two Weida subsidiaries, Lee said nearly the entire 6,200ha had been planted.

“We have invested more than RM100mil in the development of the oil palm estates. About 70% of the palm trees have matured, the oldest being more than four years old,” added Lee.

He said with increased production of fresh fruit bunches in the next few years, the oil palm segment would increase its contribution to group revenue.

Weida's core business is in manufacture of polyethylene engineering products. The group owns and operates five plants in Sarawak, Sabah and Peninsular Malaysia, and a sixth plant in the Philippines.

Lee said the manufacturing and works segment contributed about 45% each to group revenue with the balance by the services division. Weida has been a leading turnkey builder of telecommunication towers in Sabah and Sarawak.

For the financial year ended March 31, Weida posted pre-tax profit of RM30.1mil on revenue of RM309.7mil and earnings per share of 19.9 sen.

By The Star

Mah Sing targets to become proxy leader

Artist impression of Mah Sing’s Lagenda@Southbay project.

Mah Sing Group Bhd managing director Tan Sri Leong Hoy Kum has big ambitions, and he's ready to articulate his aspiration for all who want to hear.

First of all, he has a vision of making Mah Sing the next Cheung Kong Holdings of Malaysia. For the uninitiated, Cheung Kong belongs to Hong Kong tycoon Li Ka-shing, and is one of the largest property developers in Hong Kong.

Like Leong, Li also started off Cheung Kong as a plastic manufacturer back in the fifties.

Some may even judge this as being a little presumptive, but Leong wants to work towards being the proxy leader of the property sector in Malaysia.

Leong: ‘I have worked very hard over the past 18 years as I want to leave a legacy.’

After chalking up more than 10 years of double digit growth, 39 projects ongoing and a remaining gross development value (GDV) and unbilled sales of some RM18bil, Mah Sing as a proxy leader of the sector might not be too far fetched a scenario.

Meanwhile sources added that Mah Sing was close to concluding two en-bloc sales from its existing developments in the Klang Valley to a group of foreign investors who are keen to take a bet on the Malaysian property market.

In the past, Mah Sing has concluded six en-bloc deals to both institutional and private investors.

When asked by StarBizWeek, Leong says an appropriate announcement will be made when such developments take place.

Potential proxy leader

The title of proxy leader undisputably belongs to one company over the last decade. Mention property in Malaysia, and the first company that springs to mind is S P Setia Bhd. And, of course, everyone knows S P Setia is what it is today thanks to its leader Tan Sri Liew Kee Sin.

While Liew's Midas touch is growing in its efficacy, much of the company belongs to Permodalan Nasional Bhd (PNB) which made a general offer for S P Setia last year. Today PNB owns some 70% of S P Setia. The takeover has seen S P Setia's sector leadership being increasingly discounted, and this is evident from its share price.

While Liew continues to steer the company for the next three years, his ownership in the company has been reduced to 5.65%.

So here comes Leong, who is focused on steering his company towards pole position by taking the approach of being a professionally-run company with an entrepreneurial spirit.

Mah Sing has delivered every quarter in terms of sales and profits over the last 10 years. As it stands, Mah Sing has a market capitalisation of more than RM2bil, putting it in sixth position. Leong is targeting Mah Sing to have a market capitalisation of RM5bil in the next 3 to 5 years.

“I have worked very hard over the past 18 years as I want to leave behind a legacy. We are building the company to be the next proxy of the property sector, by being the premier lifestyle developer that can be counted upon to deliver the results and the quality that is associated with the Mah Sing brand,” says Leong.

As Malaysia's second biggest listed property developer by sales value, Mah Sing has the credentials for these ambitions.

Up to June 30, 2012, the company has achieved sales of RM1.29bil, which is also 52% of their 2012 RM2.5bil sales target. It has unbilled sales of RM2.69bil and a cashpile of RM555mil.

For the first half, net profit was up 42% to RM120mil on the back of a 25% improvement in revenue to RM913mil.

From 2002 to 2011, Mah Sing has enjoyed a compounded annual growth rate (CAGR) of 47% on net profits. Housebuyers who purchased Mah Sing homes, especially its landed properties, have also seen capital appreciation of more than 50% over a three to four year period.

For instance, Aspen and Clover @ Garden Residence in Cyberjaya has a resort lifestyle concept with lots of lush greenery. Clover@Garden Residence for example, is set upon a hillslope and for home owners, so it is virtually having a mountain beside one's home.

Ferringhi Residence involves condo villas and resort condominiums.

For its upcoming Ferringhi Residence in Penang which also offers the same concept but with an ocean view, registration has currently reached a cumulative 2,787 units, out of total units of 210 units.

Its M Residence in Rawang has seen registration of 2,509 units out of actual units of 779, for its linked units. Its semi-dees have seen registration of 891 units out of actual units of 68.

It is with these statistics that Leong's conviction to achieve his sales target of RM2.5bil for 2012 has been further strengthened.

“If we buy the right land, offer the right product and right concept and launch at the right time, then I am very sure that my developments will sell. Property development is a cashflow game. You have to manage that well. To have a quick turnaround, we must target the right segment,” says Leong.

In 1994, Mah Sing was a fledgling property developer that started off as a plastic manufacturer, foraying into the development of an industrial park. Mah Sing can today boast of a remaining GDV and unbilled sales of RM18bil in Penang, Johor, Kota Kinabalu and the Klang Valley.

Over the past four years, Mah Sing has also bought over RM1bil worth of land with about RM12.6bil in GDV. It is still reasonably geared at 30%, well below management's target of 50%.

The company is known for its small, niche and fast turnaround developments. Previously, the company never owned a single parcel of land bigger than 400 acres. Its strategy was always to roll out what buyers wanted and at the right location.

Township developer

So moving forward, what is Leong's strategy?

For starters, he's expanding Mah Sing's township portfolio. Mah Sing has been developing townships since year 2000 in both Klang Valley and Johor Baru.

Projects like Garden Residence in Cyberjaya, Kinrara Residence in Kinrara, M Residence in Rawang and Sierra Perdana in Johor are mixed townships which have been received good take up rates. So now, Mah Sing is venturing into bigger acquisitions to meet market demand.

This is already evident in the sizes of land it has been buying of late. While its two projects in Rawang is about 400 acres, its Bangi land which will house its Southville City development is over 400 acres with a GDV of RM2.2bil.

Mah Sing will also bid for the Rubber Research Institute Land in Sungai Buloh, where it is hoping to get a bigger portion from the carved out parcels.

When asked for his outlook on the property market, Leong says he is selectively optimistic, especially on the middle income market.

“We have to tailor our property products to the needs of the market. From what I can see, mid to high end developments will still be in demand if they are in good locations. I am still bullish on certain market segments, For example, the market wants landed properties. Buyers don't mind driving 15 minutes to 30 minutes to work, as long as they have a good sized link house, semidee or a bungalow. That is why my Southville City and M Residence in Rawang will cater for this need. Landed properties for the middle income group,” said Leong.

On this note, he will continue to focus on linked houses in a gated and guarded concept priced below RM1mil.

Leong is extremely excited over the launch of Southville City, as this sizeable land will provide housing which is within the reach of many middle income earners in the Southern part of KL. Southville City has prime frontage of 2km along both sides of the North South Highway, providing value enhancing branding opportunities for project.

Mah Sing is planning to seek approval from the government for a new interchange on the North South Highway just 2.5km from the existing Bangi interchange to allow direct access to Southville City. Currently, registration for Southville City has reached close to 2,500 registrants.

Leong sees Southville City changing Bangi. He feels that presently, despite the rising trend of urbanisation, locals are largely underserved.

It is on this note that the township of Southville will comprise of landed residential units, and some 30% of the landbank will be allocated for commercial properties. Leong is targeting the upgraders and new buyers from Bangi and surrounding townships of Kajang, Semenyih, Putrajaya, Cyberjaya, Nilai and Seremban. Leong adds that for serviced apartments, there is demand for units between 500 and 700 sq ft. This was especially popular among new household formations and singles.

“Nowadays people buy properties to match their lifestyle. Property is acknowledged as the best hedge against inflation, and people buy properties as a form of wealth preservation and not speculation,” said Leong.

By The Star

I-Berhad to fast track i-City

The RM5 billion i-City project in Shah Alam, Selangor, is 20 per cent completed.

I-BERHAD is speeding up the developments of its RM5 billion i-City project in Shah Alam, Selangor.

Executive chairman Tan Sri Lim Kim Hong said the company had also been approached by several parties to replicate the i-City project in other cities.

"We will consider replicating i-City when the project is about 50 per cent completed. We expect to reach that in three to four years," Lim said after a dialogue session at Balai Berita, here, yesterday.

The 42ha i-City is a knowledge and tourism project with 18 office towers and residences, three hotels, a one million sq ft mall, a cybercentre, shop offices and retail units.

It will also have several leisure components like a snow walk, a theme park and a waterpark.

The project is 20 per cent completed.

Lim, who owns a 65 per cent stake in I-Berhad, has invested more than RM1 billion in the i-City project over the last five years.

In the next six months, I-Berhad will start building Soho (small-office-home-office) and Sovo (small-office-versatile-office) units, the mall and a three-star hotel.

There will be a total of 950 Soho and 220 Sovo units, with combined gross development value (GDV) of close to RM600 million.

For the mall and hotel, Lim said I-Berhad was expected to ink a deal within the next two to three months with international operators to jointly build and manage the properties.

Lim said in the next three years, the property development division would be the biggest revenue generator for the company,

I-Berhad aims to launch RM500 million worth of properties a year at i-City. This will give it a steady revenue of about RM500 million per annum from 2014.

Lim said he also expected the leisure division to hold strong, raking in RM50 million in revenue next year and up to 40 per cent in profit margin.

For the financial year ended December 31 2011, I-Berhad registered a pre-tax profit of RM1.84 million on revenues of RM27.3 million.

By Business Times

Rimbunan to complete 15 projects by end-2013

RIMBUNAN Corporate Advisory Sdn Bhd, which is tasked by the government to revive abandoned housing projects, expects to complete 15 such developments by end of 2013.

Rimbunan managing principal and founder Kumar Nathan said the company expects to complete seven projects by the end of this year and another eight next year.

"Although our company started in 2004, we only undertook abandoned housing projects in 2010 after we were appointed one of the 22 companies by the Ministry of Housing and Local Government to revive such projects," Kumar said in an interview with Business Times recently.

"We will complete the 15 projects, valued between RM130 million and RM140 million, before taking on new ones, including commercial buildings," he added.

Most of the abandoned projects were in Selangor, Johor, Penang and Kedah.

"We find that the majority of the abandoned projects were undertaken by developers who were first timers in the business," said Kumar.

According to the statistics provided by the government, so far this year there were 154 abandoned projects nationwide, of which 104 have been revived.

Kumar said the projects were mainly within the medium-low to low-cost apartments or houses.

"Usually these projects are done at a loss.

"That is why most of the time these projects are often abandoned," he added.

Kumar did not discount the possibility of the company undertaking its own property developments in the near future.

"We have the expertise and we know how to revive abandoned projects.

"We are definitely looking into property development but that will probably take place later.

"Right now we have our plate full with the abandoned projects," he added.

By Business Times

ETP drives demand for luxury condominiums

Luxurious condominiums (as seen in the background) enhance the surrounding of Desa Sri Hartamas while pulling up the property prices in this neighbourhood.

The various initiatives announced under the Economic Transformation Programme (ETP) is said to be attracting investment opportunities into the country and in turn, boosting the demand for luxury condominiums in Malaysia.

Just ask Johor-based property developer BCB Bhd, which has seen good response for its luxury condominium development, Concerto Kiara @ Mont Kiara.

Tan: ‘We are also targeting those local buyers that have gone abroad.’

“We launched it in early July and about 80% of our first phase have already been snapped up,” group managing director Datuk Robert Tan Seng Leong tells StarBizweek.

Concerto Kiara is also sought for investment purposes.

According to him, Concerto Kiara @ Mont Kiara comprises 440 units of luxury condominiums with a gross development value of RM580mil and will be built in three phases. The first phase will comprise some 166 units.

“Currently, the first phase is still under construction and should be completed within the next three to four years,” said Tan, adding that the price of the units start from around RM630 per sq ft.

The size of the units range from 1,580 sq ft to around 1,900 sq ft.

“We are targeting both local and foreign buyers,” said Tan. He says some of local buyers were from as far as Johor.

“We are also targeting those local buyers that have gone abroad for a while and who are looking for that similar (overseas) lifestyle here in Malaysia. This group of people can afford our properties,” he says.

According to the Property Market Report 2012 by C.H. Williams Talhar & Wong, the demand for luxury condominium properties in the Klang Valley has continued to increase.

“The influential force that is creating demand for properties in the Klang Valley is the ETP initiated by the Government to transform Malaysia into a high income economy by the year 2020.

“Encouraged by the Government through liberalisation and tax incentives, more foreign companies are expected to invest in the country and consequently, increase the entry of more expatriates and demand for up-market residences.

“This will create demand for condominium properties especially in the up-market sector.”

The report went on to note that with these expectations, several developers have introduced newer designs and innovative concepts in their latest projects.

Meanwhile, asked if Concerto Kiara @ Mont Kiara is expensive, Tan says: “Many also buy it for investment purposes. They are worried that the price will escalate further in the future.”

He also says having luxury condominiums would be in line with the Government's Greater Kuala Lumpur/Klang Valley National Key Economic Area (NKEA) 2020.

According to reports, the Greater Kuala Lumpur/Klang Valley NKEA 2020 targets are to be in the top 20 most livable cities list and the top 20 in economic growth.

The goals under this NKEA are to be realised through the implementation of nine Entry Point Projects (EPPs) and the two business opportunities. These include improving the city's attractiveness to foreign multinational companies (MNCs) and foreign talent, putting in place an efficient public transport system and enhancing the ambience of the city by improving its physical environment through various initiatives.

Intensive efforts are ongoing to upgrade the water quality of Kuala Lumpur's main rivers and beautifying and developing its surroundings via the River of Life EPP, going green through the planting of more trees in the city, developing iconic places within the city and providing comfortable walkways for the pedestrians.

There are also plans to enhance solid waste management and sewerage services for the metropolis, as well as efforts to improve housing opportunities and to vitalise Putrajaya.

It is envisaged that initiatives under the Greater Kuala Lumpur/Klang Valley NKEA would contribute RM190bil in gross national income over the next 10 years and create over 300,000 jobs.

An analyst from a local bank-backed brokerage noted that the property sector was a “safer heaven” as far as investments are concerned.

“I foresee more foreign investors putting their money in our local property market, in light of the various initiatives announced by the Government to make Kuala Lumpur more vibrant and liveable.

“Also, Malaysian property prices are cheaper compared with other countries around the world,” she says, adding that she also expects to see more local investors taking their money out of the local stock market and putting it into the local property market.

According to C.H. Williams Talhar & Wong's Property Market Report 2012, there were 22,877 luxury condominiums and serviced apartment units in the Klang Valley as at end-2011. It noted that over 50% of the new developments completed last year were located within the Mont Kiara/Sri Hartamas area.

It said that the average occupancy rate for the condominium market remained stable at about 68%.

“Occupancy for condominium had declined to 69.5% from 70.3% in 2010, while serviced residences recorded a slight improvement of 67.1% from 66.8% in 2010.

“In addition, latest launches comprised smaller and more affordable unit sizes of 500 sq ft to 1,000 sq ft with selling prices ranging from RM850 per sq ft to RM2,000 per sq ft in the KLCC area, RM700 per sq ft to RM1,200 per sq ft in Mont Kiara/Sri Hartamas and Kenny Hills areas.”

In terms of outlook, the report states that luxury condominium developments will face a threat from the large incoming supply in the future.

“Developers are also marketing actively to foreign investors as the prices for luxury condominiums in Kuala Lumpur are still considered relatively cheap as compared with other countries such as Hong Kong and Singapore.

“In addition, the pro-active measures from the Government, efforts to promote the Malaysia My Second Home as well as the lifting of Foreign Investment Committee's approval in purchasing the properties by foreigners will boost the luxury condominium sector.”

The report added that occupancy rates and condominium rentals will be on a downtrend as new units enter the rental market at a faster rate than the slower projected demand from working expatriate professionals entering Malaysia.

“Buyers are still actively looking for condominium properties for investments in the KLCC and Mont Kiara areas but are now have more leeway for negotiation of prices.”

By The Star

Penthouses of St Mary Residences will be sold with the option of owning a Lamborghini

St Mary Residences is located in Jalan Tengah, off Jalan Sultan Ismail, Kuala Lumpur.

In what may well be the first time a developer collaborates with a car company in order to sell a property, both being big ticket items, the flavour of this partnership between Eastern & Oriental Bhd (E&O) and Lamborghini has an intoxicating whiff of big names, superb brands and luxury all coming together.

The partnership has several elements that are difficult to ignore. First, the aspect of consumerism today. It is a subject that can lead to many lessons in marketing, retail, advertising and promotion. Is opting for the branded the way to go? For many consumers, the answer is Yes because branding, more often than not, equates quality. So there is a price to be paid for quality.

Chan with a Lamborghihi Gallardo. He say the Lamborghini is a lifestyle purchase. Just like properties today.

On another aspect, if one were to stay focus and not be distracted by the gleaming wheels of the sports car, what is the way ahead for the high-end property market? Will other developers also co-brand in order to sell their properties?

In the property world, the E&O group is nothing less than innovation, luxury and lifestyle all rolled into one. It has always been the first to market.

Says E&O deputy managing director Eric Chan: “The direction the high end property sector will take depends on how the regional market responds to what we have in Kuala Lumpur. There is value here.”

The last decade or so, in many ways, the niche developer has been rather bold and innovative.

Consider the following. Before the Kuala Lumpur City Centre (KLCC) became the sought after location it is today although it is beyond the reach of a majority of the Malaysian population E&O came up with Dua Residency, the first luxurious condominium development with built-ups of more than 2,000 sq ft and beyond. At a time when few have seen or experienced such luxury, except for high net worth individuals, Dua was sold starting from RM500 to RM600 per sq ft. Today, those units average about RM900 per sq ft.

A couple of years after that in 2006/07, nearly every developer who had the resources tried to enter that KLCC market.

In June 2009, months after the 2008 global financial crisis, E&O boldly launched St Mary Residences, at Jalan Tengah, off Jalan Sultan Ismail, Kuala Lumpur.

It was the first developer to launch anything after the September 2008 fall of Lehman Brothers. Unlike Dua Residency where units were predominantly more than 2,000sq ft and above, the developer changed strategies in 2009 by offering quite a number of one-bedroom units of about 1,000sq ft.

Hungary for launches, its introduction of St Mary Residences saw a strong 80% take-up rate after just a five-day preview, at an average price of about RM900 per sq ft. St Mary Residences is located on four acres of former church land. Three blocks were built. Two blocks were sold and one named E&O Residences. These 200-unit block was “given” to the Synod of the Diocese of West Malaysia in exchange for the land. Besides the serviced apartment block, the church also negotiated for the building of a school in Selayang.

E&O will be operating and managing E&O Residences for 15 years, with the option to extend for another five. It will offer luxury short-term stays. Thus far, all the units in the two remaining blocks have been sold with the exception of three super penthouse units. Next week, purchasers who bought into the development will be getting their keys.

Here is where the co-branding comes in. The three penthouses, with a built-up of about 7,000sq ft, are priced between RM10mil and RM12.18mil. They are being sold with the option for purchasers to own a Lamborghini Gallardo.

Lamborghini Kuala Lumpur chief operating officer Marcus Chye says there are about 200 units of Lamborghini in Malaysia, but there are only 20 Gallardo models. Thirteen have been sold, and three have been put aside for this special partnership with E&O.

Those familiar with the luxurious car market says the Lamborghini is at the top end of the sports car range with aspiring new entrants buying a Lotus which costs about RM500,000 before moving on to a Porsche, then a Ferrari, if they are die-hard collectors.

But why a Lamborghini and not a Bentley or a Rolls Royce?

Says Chye: “The best goes with the best.”

The Bentley and the Rolls Royce are business cars, says Chye. “You go to meetings, dinners and to the office with a Bentley or a Rolls Royce. The Lamborghini is for the weekend.”

Unlike the perception of many that the Lamborghini owner belongs to the 30-to-40-something age group, Chye begs to differ.

Some clients are older and wiser, he says.

Which thus solves the question of who will buy E&O's super penthouses priced between RM10mil and RM12mil. Purchasers cannot contra the price of the property with the price of the car.

Says Chan: “They will get the car at a very special rate.”

Both Chan and Chye are of the view that when it comes to super brands and premium luxury the likes of E&O and Lamborghini, there is “no question of a discount.”

Says Chye: “The Lamborghini is a lifestyle. Just like properties today.”

By The Star

E&O plans RM1b projects

THREE MORE: Development of condominiums in KL, Johor and Penang

EASTERN & Oriental Bhd (E&O) will be launching three more condominium projects with a total gross development value of about RM1 billion, within the next six months.

The projects will include the first phases of its properties in Kuala Lumpur, Johor and Penang, said deputy managing director Eric Chan.

The Kuala Lumpur project is located on a half hectare land on Jalan Yap Kwan Seng, while the Johor one is the first part of the RM3 billion Medini Integrated Wellness Capital in Iskandar Malaysia.

The Penang project is the group's second tower for its Andamam at Quayside condominiums.

Chan told reporters this after a media briefing on its completed luxury lifestyle project, St Mary Residences, here yesterday.

St Mary Residences, developed in partnership with the Lion Group, comprises 457-unit luxury apartments, and the E&O Residences Kuala Lumpur, which is the group's first serviced apartment project in Kuala Lumpur. It also has a retail centre of over 34,400 sq ft, which is expected to be fully occupied by the end of this year.

Chan said, to date, half of the retail space had been taken up.

The apartment units, which include 16 penthouses and four super penthouses, were sold between RM1.5 million and RM12.18 million.

All the apartment units, said Chan, have been sold out while the penthouse units will be offered for sale soon.

He said in collaboration with Lamborghini KL, buyers of the su-per penthouses will be offered an option to purchase a limited edition Lamborghini priced at RM1.68 million.

Chan also said E&O for the next six months will provide information on the range of rentals, to owners of the units at St Mary Residences who will be getting their keys next week.

"We will assist them in getting their units rented out for free for the first six months and we will work with valuers and property agents on this," he said adding that the rental price will be between RM5.50 and RM8 per sq ft.

The smallest unit is a studio suite measuring 1,131 sq ft while the biggest is the penthouse unit with a size of 6,759 sq ft.

By Business Times

Buy a penthouse and get a Lamborghini

Dream combination: What has a Lamborghini got to do with St Mary Residences? Eastern & Oriental Bhd (E&O) has come up with a novel option for a penthouse purchaser to own the sports car. Seen here are E&O deputy managing director Eric Chan (right) and Lamborghini KL chief operating officer Marcus Chye with the Lamborghini Gallardo at St Mary Residences.

Probably the first time such an offer is being made

Kuala Lumpur: Fancy a Lamborghini to go with your super penthouse?

In what could be the first time in the property industry, lifestyle developer Eastern & Oriental Bhd (E&O) has come up with the option for purchasers of its super penthouses at St Mary Residences Kuala Lumpur to own a Lamborghini Gallardo at a special price. The car costs about RM1.7mil.

E&O deputy managing director Eric Chan said this was made possible as a result of a co-branding partnership between the two companies.

“This is a market first, and another way E&O is setting benchmarks for luxury living in the city,” Chan told a press conference.

Lamborghini Kuala Lumpur chief operating officer Marcus Chye said: “The best goes with the best.”

There are only 200 units of Lamborghini in the country. On the Gallardo special edition, Chye said only 20 units were made for Malaysia. Thirteen have been sold and three out of the remaining seven have been reserved for St Mary buyers.

As for the other big-ticket item, the three remaining penthouses, with a built-up of 6,700sq ft, are priced between RM10mil and RM12.18mil each. There are 16 penthouses, but only four come with the “super” status. One of them was previously sold.

The three-block 28-storey development is located in the heart of the central business district in Jalan Tengah, off Jalan Sultan Ismail, and is about 10 minutes from the Kuala Lumpur City Centre area.

Two of the blocks, comprising 457 units, have all been sold except for the three super units.

The third block will be returned to the church Synod of the Diocese of West Malaysia, the previous owner of the 4.04 acre freehold land but E&O will manage the 200 units, known as E&O Residences Kuala Lumpur, for the church for 15 years, with an option to extend to another five years.

It will be the company's first serviced apartments in the city. It also owns Eastern & Oriental Hotel and Lone Pines, both in Penang.

Chan also introduced the E&O rental programme which was designed to help buyers and investors better realise their investment in St Mary Residences.

Chan said the programme would help buyers and investors to facilitate the sale or rental of their units by advising them on the rental and sub-sale rates.

He said purchasers might have an annual yield of between 5% and 7% depending on when they bought the units.

On its other projects, Chan said the company wasplanning to launch its Jalan Yap Kwan Seng development, several blocks of Penang properties and possibly Johor properties with a combined gross development value of about RM1bil in the next 12 months.

By The Star

The Haven set for completion mid-2013

IPOH: The Haven, the luxury lakeside residence in Tambun, Ipoh is set for completion by the middle of next year, said The Haven Sdn Bhd chief executive officer Peter Chan.

He said the group was the first developer to conduct a “topping-out” event for the three towers simultaneously, and construction of the project was ahead of schedule. “The project has surprised many people with its speedy sales and construction by topping out all three towers concurrently,” he said at a dinner to mark the topping-out ceremony on Saturday. The Haven is Perak’s largest and tallest residential condominiums.

Chan said that out of the 500 units, over 75% has been sold while another 100 units were still available with each unit costing between RM600,000 and RM3.8mil.

The Haven would be managed by international hospitality chain – Best Western which would market and lease out the apartments on behalf of owners. At an average price of RM600 per sq ft, The Haven is located near Sunway Group’s Lost World of Tambun water theme park and the Banjaran Hotsprings Retreat in Tambun.

By Bernama

RM6.5b projects planned in Penang

Visitor Chan Lai Ming (left) listening to Hong Leong Bank personal financial consultant Yeoh Wei Kheng (centre) and SP Setia property division (North) sales and marketing senior executive Agnes Chua explaining details of their projects.

KUALA Lumpur and Penang-based developers are planning to execute some RM6.463bil worth of residential and commercial properties on the island and mainland in the second half year and 2013 despite the tightening of housing credit by banks and a gloomy global economic outlook for the future.

SP Setia Bhd (RM2.563bil GDV), IJM Land Bhd (RM608mil GDV), Mah Sing Group Bhd (RM180mil), Sunway Bhd (RM385mil GDV), Ideal Property Development Sdn Bhd (RM1.1bil GDV), and Ivory Properties Group Bhd (RM1.6bil GDV) are among the developers with plans for new housing projects in Penang.

The developers are displaying some of these projects at The Star Property Fair 2012 held at the Gurney Plaza and G Hotel from July 12-15. About RM6.105bil of projects are located on the island, with the remaining RM358mil planned for Seberang Prai, to be undertaken by Sunway and IJM Land in the second half year and 2013.

As land is still available in the South-West district, the area which covers residential cum commercial neighbourhoods such as Sungai Ara, Batu Maung, Bukit Jambul, Sungai Nibong and Teluk Kumbar continues to be popular locations for developers such as SP Setia, Sunway, IJM Land, and Ideal Property to launch their projects.

With the exception of Sunway Cassia and IJM's Trehaus landed property schemes project in Batu Maung and Bukit Jambul, all the other properties planned for the island comprise high-rise projects.

Real Estate and Housing Developers' Association (Rehda) Penang chairman Datuk Jerry Chan says the trend of development on the island will be towards high-rise developments due to rising land cost.

“A few years back, developers could still build landed properties because they could be priced attractively.

“Nowadays with land cost escalating by about 20% from last year, developers will have to price a semi-detached house from RM900 per sq ft onwards in a prime area like Pulau Tikus as the cost for net land plot is RM500 to RM600 per sq ft.

“If the semi-detached unit has a built-up of 6,000 sq ft, the selling price will be RM5.4mil.

“How many people would fork out RM5.4mil for a semi-detached home?” he asks.

The cost of a plot of net land in a prime area like Pulau Tikus is between RM500 and RM600 per sq ft. In Tanjung Bungah and Batu Ferringhi, land is priced between RM300 and RM400 per sq ft, while in the South-West district it is between RM100 and RM200 per sq ft.

Chan says there is still demand on the island for landed properties priced below RM2mil and condominiums priced below RM1mil.

”This is the reason developers are still carrying out their plans to launch projects despite the stricter policies on housing loans and concerns over the upcoming general election.

“The state's economic status is still sound,” Chan says.

Penang Master Builders' and Building Materials Dealers Association executive advisor Datuk Finn Choong says developers are launching projects also because of stability in raw material prices.

“By launching their projects now, developers can lock on to the present prices of construction materials for their projects.”

This means developers can price their properties within the RM400,000 and RM500,000 range

IJM Land senior manager (sales and marketing) Patsy Lee (right) detailing one of the company’s projects to Ivan Oh Eng Lim and Tan Gek Im at The Star Property Fair 2012 in Gurney Plaza.

Affordable range

“A number of the projects planned for launching in the South-West district this year and next year are priced within this affordable range,” he says.

As demand for construction materials for the residential sector has softened over the past 12 months, the pricing of cement, for example, has also not gone above RM15 per 50 kg bag since late last year.

At the peak two years ago, the pricing of cement was above RM18 per 50kg bag.

Henry Butcher Malaysia (Penang) director Dr Teoh Poh Huat says the Penang property market sentiment is still positive.

”High net-worth Penangites living overseas still have confidence in the local property market. Thus, the property values look set to grow, particularly for those properties which are well designed, in good locations, and underpinned by a reputable developer,” he says.

Meanwhile, Henry Butcher Seberang Prai senior manager Fook Tone Huat says the price for properties in Central Seberang Prai has appreciated by about 20% since 2010.

“In prime locations of Seberang Prai, a semi-detached house is now priced about RM750,000, compared with about RM600,000.

“A terraced house in a similar location is now priced about RM350,000 compared with about RM280,000 two years ago.

”Similarly, a bungalow in a Seberang Prai prime location is now about RM1mil, about 20% more than two years ago,” he says.

The value of commercial properties in Seberang Prai has also appreciated by about 20% compared to 2010, Fook adds.

”A three-story shoplot in BM Business Park is now priced around RM700,000.

”The value of properties in Seberang Prai is now on the rise because more people are investing in properties on the mainland as the second bridge is scheduled to be completed soon and more funds are coming into the industrial park of South Seberang Prai,” he says.

From SP Setia, there are RM1.288bil worth of properties to be undertaken for the South-West district in the second half and in 2013, while the remaining RM1.275bil of projects are planned for Tanjung Bungah and Sungai Nibong in the North-East district.

These projects include the RM250mil Setia Triangle launched in June, a commercial cum residential scheme in Sungai Ara, the RM335mil Setia Greens 2 in Sungai Ara and a RM53mil condominium project in Teluk Kumbar which will be launched end of 2012 and in early 2013 respectively.

Wave and Breeze

In 2013, SP Setia plans to launch the Wave and Breeze condominium projects for Setia Pearl Island in Sungai Ara, with a GDV of RM350mil and RM300mil respectively, and a RM175mil condominium project in Sungai Nibong.

In the North-East district of the island, SP Setia's plan is to launch a RM1.1bil mixed-development project in Tanjung Bungah.

“Land on the island is becoming scarce. Since SP Setia wants to continue playing a dominant role in the property market on the island, it is seizing every opportunity to expand its land bank, capitalising on attractive deals,” SP Setia Property (North) general manager Datuk S. Rajoo says.

Penang-based Ideal Property Sdn Bhd has lined up residential and commercial projects with a collective GDV of RM1.1bil for the South-West district from now till the second quarter 2013.

The group plans to launch in August the RM400mil Imperial One project in Sungai Ara on a 9.1-acre site, comprising 768 units of condominiums with built-up areas of 1,050 sq ft and 1,250sq ft priced between RM399,000 and RM499,000 per unit.

The RM400mil Imperial Two, which is waiting for approval and likely to be launched in the second quarter of 2013, comprises properties to be priced between RM400,000 and RM550,000.

Early next year, Ideal plans to launch the first phase of the Ideal Vision Park, a RM1.5bil mixed-development scheme comprising 1,945 units of residential and commercial properties and 550,000sq ft of commercial space.

The first phase comprises RM300mil worth of high-rise residential and commercial properties, which will be priced between RM400,000 and RM600,000. There are four more phases for Ideal Vision Park that will be launched in stages in 2014 and 2015.

Ideal Property managing director Datuk Alex Ooi said the stability of construction material prices allowed developers to build more affordably priced properties that had a wider appeal.

”This is why we are able to focus on building properties priced between the RM400,000 and RM600,000 range,” Ooi adds.

Sunway is undertaking the RM200mil Sunway Cassia project in Batu Maung in November, which comprise 59 units of three-story terraced homes.

IJM Land plans to launch in late 2012 the RM85mil Trehaus scheme, comprising 26 semi-detached properties and 46 villa condominiums, in Bukit Jambul.

In the North-East district, its projects comprise the RM350mil Light Collection III, comprising 190 condominiums and duplex townhouses next to the Penang Bridge on the island. Ivory Properties Group Bhd (IPGB) plans to launch in the second half of 2012 approximately RM1.6bil worth properties on the island.

These projects comprised the first phase of Bayan Mutiara, which has a GDV of about RM800mil, the third and fourth phases of the residential towers for Penang Times Square, which has a RM300mil GDV, a RM130mil sea-fronting condominium block in Batu Ferringhi, and the RM400mil City Mall and City Residence project in Tanjung Tokong.

Elsewhere, Mah Sing plans to launch RM180mil worth of low-rise condominiums in the Batu Ferringhi tourist belt later this year.

Group chief operating officer Teh Heng Chong says Mah Sing will focus on residential properties priced below RM1mil in Penang, Kuala Lumpur, and Johor.

At present, about 70% of our launches are in this price segment, which comprises mainly small serviced residences and linked homes.

In Seberang Prai, the projects planned include the RM185mil Sunway Wellesley by Sunway, comprising residential and commercial properties, and the RM173mil Permatang Sanctuary scheme, comprising 300 semi-detached and bungalow properties.

The Permatang Sanctuary semi-detached properties are priced from RM438,000 onwards, while the bungalows from RM625,000 onwards.

By The Star

SP Setia set to unveil luxury condo project in JB

JOHOR BARU: SP Setia Bhd will soon unveil its latest and perhaps most prestigious development in the city - a 55-storey luxury condominium valued at about half a billion ringgit.

Set to have 600 units, the Setia Sky 88 will be located on SP Setia's 1.7ha land on Jalan Abdullah Tahir.

According to SP Setia property division (south) general manager Hoe Mee Ling, the two-tower condominium will start at RM700 per sq ft, with unit size ranging from 500 sq ft to 1,500 sq ft.

The site will see a development of a third block, which is likely to be an office or commercial building.

She said after the company's 16-year presence here, the market is now ready for such a high-end development.

Hoe said while Johor Baru has seen gradual property appreciation for the first 10 years the company has been here, the last five years have seen property prices jump between 20 and 30 per cent.

SP Setia still has undeveloped land with a gross development value of RM10 billion, or 640ha in the south.

She said the group is actively on the lookout for more land in Iskandar.

By Business Times