KUALA LUMPUR: IOI Corporation Bhd has moved closer towards its plan to venture into property development in China after getting the government's approval to set up a unit in Xiamen.
IOI Corp said its 99.8% owned Palmy Max Ltd had on Sept 30 received a certificate of approval to set up a unit IOI (Xiamen) Properties Co. Ltd in Xiamen.
IOI (Xiamen) Properties was incorporated on Sept 27 with a total registered capital of US$250mil and is currently dormant.
"IOI (Xiamen) Properties is intended to undertake a mixed-use development in Jimei District, Xiamen, Fujian Province in China," it said.
By The Star
Showing posts with label China. Show all posts
Showing posts with label China. Show all posts
Monday, October 1, 2012
Monday, September 3, 2012
China says property controls still needed
BEIJING: Premier Wen Jiabao said Saturday it was too early to loosen curbs on speculative property investment, state media reported, as authorities keep a tight grip over China's once red-hot housing sector.
Wen, who was inspecting an affordable housing project said government efforts to rein in runaway housing prices had been largely successful, the official Xinhua news agency said.
"But the controls over the real estate market are still in a critical period," Wen said in the port city of Tianjin, southeast of Beijing.
By AFP
Wen, who was inspecting an affordable housing project said government efforts to rein in runaway housing prices had been largely successful, the official Xinhua news agency said.
"But the controls over the real estate market are still in a critical period," Wen said in the port city of Tianjin, southeast of Beijing.
By AFP
Wednesday, August 8, 2012
DreamWorks plans U$3.2b theme park in Shanghai
DREAMWORKS Animation yesterday said it plans to build a US$3.2 billion (RM9.8 billion) theme park in Shanghai, as the US film giant seeks to bolster its presence in the booming Chinese entertainment market.
The studio's newly formed China joint venture, Oriental DreamWorks, is set to open the theme park in 2016, the creator of megahits like "Shrek" and "Kung Fu Panda" said in a statement.
The 20 billion yuan (RM9.8 billion) project - called the Dream Centre - will comprise entertainment facilities, animation exhibitions and commercial developments including hotels and shopping areas in Shanghai's Xuhui district, it said.
The announcement comes after Walt Disney, another US entertainment giant, last year broke ground on a planned US$3.7 billion theme park in Shanghai which is scheduled to open in 2015.
DreamWorks in February said it planned a US$330 million joint venture company with three Chinese partners - China Media Capital, Shanghai Media Group and Shanghai Alliance Investment.
Yesterday's statement posted on DreamWorks' website said it had formally established the joint venture with the partners, all state-backed Chinese firms which together hold a majority 55 per cent stake in the venture.
The company will make the next "Kung Fu Panda" movie, the third instalment in the series, in China as a co-production for release in 2016.
It plans to release up to three major films a year with its first feature-length animated film scheduled for global release in 2017, it said.
The huge commitment in local production comes even though Beijing maintains strict quotas which limit the number of foreign movies allowed into China.
China's box office grew an annual 35 per cent to US$2.0 billion in 2011, making it the second largest international market behind Japan, according to the Motion Picture Association of America.
By AFP
The studio's newly formed China joint venture, Oriental DreamWorks, is set to open the theme park in 2016, the creator of megahits like "Shrek" and "Kung Fu Panda" said in a statement.
The 20 billion yuan (RM9.8 billion) project - called the Dream Centre - will comprise entertainment facilities, animation exhibitions and commercial developments including hotels and shopping areas in Shanghai's Xuhui district, it said.
The announcement comes after Walt Disney, another US entertainment giant, last year broke ground on a planned US$3.7 billion theme park in Shanghai which is scheduled to open in 2015.
DreamWorks in February said it planned a US$330 million joint venture company with three Chinese partners - China Media Capital, Shanghai Media Group and Shanghai Alliance Investment.
Yesterday's statement posted on DreamWorks' website said it had formally established the joint venture with the partners, all state-backed Chinese firms which together hold a majority 55 per cent stake in the venture.
The company will make the next "Kung Fu Panda" movie, the third instalment in the series, in China as a co-production for release in 2016.
It plans to release up to three major films a year with its first feature-length animated film scheduled for global release in 2017, it said.
The huge commitment in local production comes even though Beijing maintains strict quotas which limit the number of foreign movies allowed into China.
China's box office grew an annual 35 per cent to US$2.0 billion in 2011, making it the second largest international market behind Japan, according to the Motion Picture Association of America.
By AFP
Thursday, August 2, 2012
CapitaLand sees China home sales improving
SINGAPORE: CapitaLand Ltd sees residential sales in China improving for the rest of the year, helped by expectations of a turnaround in the world’s second-largest economy.
CapitaLand, about 40 per cent owned by Singapore state investor Temasek, said the number of homes it sold in China in the second quarter more than tripled to 812 units from the previous three months, boosted by a rebound in buyers’ sentiment.
“We’re seeing a lot of pent up demand and seeing a lot of people committed to buying properties now, having stayed away for the last one and a half years,” Jason Leow, CEO of CapitaLand’s China unit, told a briefing of media and analysts.
By Reuters
CapitaLand, about 40 per cent owned by Singapore state investor Temasek, said the number of homes it sold in China in the second quarter more than tripled to 812 units from the previous three months, boosted by a rebound in buyers’ sentiment.
“We’re seeing a lot of pent up demand and seeing a lot of people committed to buying properties now, having stayed away for the last one and a half years,” Jason Leow, CEO of CapitaLand’s China unit, told a briefing of media and analysts.
By Reuters
Saturday, July 21, 2012
Great Mall of China set to become world's largest
And BLand has every reason to be confident of GMOC's success, particularly in 'terms of demand for space leasing' as Beijing has high per capital income of US$12,447 (RM39, 200) in 2011.
By the World Bank's standard, cosmopolitan Beijing is already considered a wealthy city, on par with London, New York or many other rich cities around the globe.
GMOC, the world's biggest integrated mall complex, is estimated to be worth about RM7.5 billion on a 32ha site in China's Hebei Province.
It is expected to be completed in five years. GMOC has strategically positioned itself in an area where massive integrated public transportation project is due to take place.
One notable project is a big subway station, which is expected to be completed in 2018, linking it to neighbouring TongZhou.
TongZhou is about 20km away, and the subway will bring its distance to GMOC within 2km, reducing travel time to mere minutes from half an hour now.
Beijing's population of over 21 million people, excluding the population of its neighbouring cities such as Tian Jin, Hebei and Yan Jiao, which are also booming due to the country's sound economy, is expected to give rise to the project's popularity.
The vision for such a project of epic proportions is a timely investment by the Berjaya Group founder Tan Sri Vincent Tan.
Tan owns 49 per cent of BLand's subsidiary and GMOC operator Berjaya Great Mall of China Co Ltd (BGMOC) through Berjaya Times Square Cayman Ltd.
GMOC was planned at a time the Chinese market began witnessing a boom followed by the gross increase of the republic citizens' spending power worldwide.
Tan definitely knows his market.
The Berjaya Times Square, which is the eight largest building in the world in terms of floor area, is proof of the conglomerate's big dreams and visions.
Unlike other shopping malls in Beijing, which are mostly purely shopping driven, GMOC will be the first to break out of the ordinary shopping culture in China by housing three indoor theme parks.
GMOC will also impress its patrons with its many world-class amenities, including a multi-purpose convention hall to cater to all forms of business needs.
With Phase One due to be completed in October next year boasting of three all-weather and indoor theme parks namely Extreme Park, Family Park and Water Park, GMOC is poised to set the Malaysian flag sailing high globally.
By Business Times
China property stocks rally begins to wobble
This year's rally in stocks and bonds of mainland Chinese real estate developers looks set to peter out, analysts say, as valuations have become less attractive and hopes have dwindled for any rollback of steps taken to dampen home prices.
The tide appeared to start turning during the past week, though China's property sector remains among the best performers across Asia this year, easily outpacing benchmarks.
"The best performance for the China property sector is behind us and further gains will be difficult because of rich valuations and economic headwinds in the second half of 2012,' said Owen Gallimore, ANZ head of credit strategy in Singapore.
"It is doubtful if people want to buy beyond the top-tier names and into the mid-tier after such a strong rally," he said.
An index of property shares in Shanghai is up 17 per cent this year in contrast to the Shanghai Composite, which has drifted into negative territory and is currently near the year's lows.
Valuations for the MSCI China real estate stock index have nearly doubled since the fourth quarter in 2011 when they hit a record low of just four times forward price-to-earnings.
According to Deutsche Bank, a weighted index of 45 bonds from 32 property companies produced a return of 25 per cent in the first half of 2012, easily beating the 6.7 per cent total return for the overall JP Morgan Asian Composite bond Index.
Some individual bonds have even beaten that. Shimao Properties' bond prices maturing in 2017 rose 66 per cent from the October lows.
A rebound in transactions mainly from first time home buyers came as a relief for the property sector earlier this year, lifting it out of the funk it had fallen into by the end of 2011.
According to Macquarie Capital Securities sales volumes in China's tier-1 and tier-2 cities on a four-week average basis bottomed out around February this year and have gathered pace after June.
But as house prices were still in decline through this period and there was growing unease over China's economic slowdown, hopes grew that Beijing would rethink measures taken in the past two years to cool off an overheating property market.
But now, with signs that home prices have bottomed out, the thinking is that Beijing is more likely to leave controls in place to forestall any rebound in home prices.
After data released on Wednesday showed that China home prices broke eight straight months of declines in June, shares in the property sector began retreating faster.
Investors are worried over how the government would respond should sales volumes stay strong and prices begin rising.
By Reuters
The tide appeared to start turning during the past week, though China's property sector remains among the best performers across Asia this year, easily outpacing benchmarks.
"The best performance for the China property sector is behind us and further gains will be difficult because of rich valuations and economic headwinds in the second half of 2012,' said Owen Gallimore, ANZ head of credit strategy in Singapore.
"It is doubtful if people want to buy beyond the top-tier names and into the mid-tier after such a strong rally," he said.
An index of property shares in Shanghai is up 17 per cent this year in contrast to the Shanghai Composite, which has drifted into negative territory and is currently near the year's lows.
Valuations for the MSCI China real estate stock index have nearly doubled since the fourth quarter in 2011 when they hit a record low of just four times forward price-to-earnings.
According to Deutsche Bank, a weighted index of 45 bonds from 32 property companies produced a return of 25 per cent in the first half of 2012, easily beating the 6.7 per cent total return for the overall JP Morgan Asian Composite bond Index.
Some individual bonds have even beaten that. Shimao Properties' bond prices maturing in 2017 rose 66 per cent from the October lows.
A rebound in transactions mainly from first time home buyers came as a relief for the property sector earlier this year, lifting it out of the funk it had fallen into by the end of 2011.
According to Macquarie Capital Securities sales volumes in China's tier-1 and tier-2 cities on a four-week average basis bottomed out around February this year and have gathered pace after June.
But as house prices were still in decline through this period and there was growing unease over China's economic slowdown, hopes grew that Beijing would rethink measures taken in the past two years to cool off an overheating property market.
But now, with signs that home prices have bottomed out, the thinking is that Beijing is more likely to leave controls in place to forestall any rebound in home prices.
After data released on Wednesday showed that China home prices broke eight straight months of declines in June, shares in the property sector began retreating faster.
Investors are worried over how the government would respond should sales volumes stay strong and prices begin rising.
By Reuters
Friday, June 29, 2012
LBS targets China property launch
PETALING JAYA: LBS Bina Group Bhd plans to launch its maiden property project in Zhuhai, China, by the middle of next year.
Managing director Datuk Lim Hock San said the first phase of the 79ha project might comprise a resort-type high-end landed one.
"We are definitely going to launch the project in China next year. Depending on the market, it could be in the second or third quarter of 2013," he said after LBS' annual general meeting here yesterday.
LBS had submitted its plans to the authorities for approval and should receive a reply in October, Lim added.
The project, which will take five to seven years to complete, is a 60:40 joint venture with Jiuzhou Group, a Chinese government-linked company.
In April this year, LBS' wholly-owned Intellplace Holdings Ltd signed a memorandum of understanding with JDCL's wholly-owned Jiuzhou Technology Co Ltd for the sale of two LBS companies involved in golf club operations and property development projects in Zhuhai.
LBS is then expected to become a substantial shareholder of the Hong Kong Stock Exchange-listed JDCL.
For the Zhuhai project, LBS will not be involved in the financing, although it will have a stake in JDCL.
On the domestic front, LBS said it was on track to achieve its 2012 sales target of RM800 million, Lim said.
As of June 27 2012, it had achieved about RM500 million in sales.
Yesterday, LBS shareholders approved the payment of a first and final dividend of 2.5 sen per ordinary share of RM1.00.
By Business Times
Managing director Datuk Lim Hock San said the first phase of the 79ha project might comprise a resort-type high-end landed one.
"We are definitely going to launch the project in China next year. Depending on the market, it could be in the second or third quarter of 2013," he said after LBS' annual general meeting here yesterday.
LBS had submitted its plans to the authorities for approval and should receive a reply in October, Lim added.
The project, which will take five to seven years to complete, is a 60:40 joint venture with Jiuzhou Group, a Chinese government-linked company.
In April this year, LBS' wholly-owned Intellplace Holdings Ltd signed a memorandum of understanding with JDCL's wholly-owned Jiuzhou Technology Co Ltd for the sale of two LBS companies involved in golf club operations and property development projects in Zhuhai.
LBS is then expected to become a substantial shareholder of the Hong Kong Stock Exchange-listed JDCL.
For the Zhuhai project, LBS will not be involved in the financing, although it will have a stake in JDCL.
On the domestic front, LBS said it was on track to achieve its 2012 sales target of RM800 million, Lim said.
As of June 27 2012, it had achieved about RM500 million in sales.
Yesterday, LBS shareholders approved the payment of a first and final dividend of 2.5 sen per ordinary share of RM1.00.
By Business Times
Thursday, June 21, 2012
China advisers urge government to relax property curbs
BEIJING: China's top advisory body called on the government to relax property market restrictions to keep the economy growing, a newspaper said, the first such proposal by advisers to steady a weakening house market.
The China Daily cited the Chinese People Political Consultative Conference (CPPCC), an advisory body for parliament, as saying Beijing should loosen purchase restrictions for luxury homes in the first-tier cities of Beijing, Shanghai, Guangzhou and Shenzhen.
“Restrictions on purchases should be relaxed for high-end residential properties in first-tier cities,” the newspaper cited the proposal as saying. The paper did not say how it obtained the proposal, saying only that it was released on Tuesday.
This is the first time a group of influential economic advisers have called on China to relax controls on the property market, a once redhot sector that has cooled under a government campaign to make home prices more affordable.
It follows rampant market talk that China could soften its grip on the house market by allowing bigger discounts on mortgage rates, which the government has vehemently denied, saying instead it needs to persevere with price controls.
Premier Wen Jiabao has been adamant that the government will not relax its grip on the housing market even as he has called for other measures to support economic growth.
Analysts said China was unlikely to heed the suggestion as home prices were still too high, but the proposal underlined worries that China's economy could sink into a deeper downturn if the property market was suppressed for too long.
“I don't think the proposal on relaxing restrictions on home purchases will be accepted by the central government since it is in contrast to Beijing's tightening stance,” said Li Wei, economist from Standard Charted Bank in Shanghai.
Growth in the world's second biggest economy slumped to a three-year low of 8.1% in the first quarter as Europe's debt crisis sapped export growth. Analysts forecast growth to slacken further to 7.9% between April and June.
The CPPCC, which includes retired or soon-to-be retired officials, meets in parallel to China's parliament and has no decision-making powers. But it has in the past floated ideas that subsequently became law.
By Reuters
The China Daily cited the Chinese People Political Consultative Conference (CPPCC), an advisory body for parliament, as saying Beijing should loosen purchase restrictions for luxury homes in the first-tier cities of Beijing, Shanghai, Guangzhou and Shenzhen.
“Restrictions on purchases should be relaxed for high-end residential properties in first-tier cities,” the newspaper cited the proposal as saying. The paper did not say how it obtained the proposal, saying only that it was released on Tuesday.
This is the first time a group of influential economic advisers have called on China to relax controls on the property market, a once redhot sector that has cooled under a government campaign to make home prices more affordable.
It follows rampant market talk that China could soften its grip on the house market by allowing bigger discounts on mortgage rates, which the government has vehemently denied, saying instead it needs to persevere with price controls.
Premier Wen Jiabao has been adamant that the government will not relax its grip on the housing market even as he has called for other measures to support economic growth.
Analysts said China was unlikely to heed the suggestion as home prices were still too high, but the proposal underlined worries that China's economy could sink into a deeper downturn if the property market was suppressed for too long.
“I don't think the proposal on relaxing restrictions on home purchases will be accepted by the central government since it is in contrast to Beijing's tightening stance,” said Li Wei, economist from Standard Charted Bank in Shanghai.
Growth in the world's second biggest economy slumped to a three-year low of 8.1% in the first quarter as Europe's debt crisis sapped export growth. Analysts forecast growth to slacken further to 7.9% between April and June.
The CPPCC, which includes retired or soon-to-be retired officials, meets in parallel to China's parliament and has no decision-making powers. But it has in the past floated ideas that subsequently became law.
By Reuters
Monday, June 18, 2012
Home prices fall in more than half of Chinese cities
Prices for new homes in China fell in more than half of major cities in May from April, official data showed Monday, as the government vows to maintain controls over the property market.
Out of 70 cities tracked by the government, 43 registered month-on-month falls in home prices in May, the same number as April, the National Bureau of Statistics said in a statement.
China has implemented several measures aimed at limiting runaway property prices for more than a year, including bans on buying second homes, hiking minimum down-payments and introducing property taxes in certain cities.
But the cities that recorded rises in home prices doubled to six, including Tianjin and Dalian in the north, suggesting prices have started to rebound despite controls, analysts said.Prices were unchanged in 21 cities, the bureau said.
The government has been encouraging banks to lend to first-time home buyers while at the same time seeking to clamp down on speculative demand.China cut interest rates on June 8, which analysts believe could bring new life to the market.
"The government insists that its policy controls remain in place, but they do seem to be fraying at the edges," Capital Economics said in a research report last week.
"But neither property prices nor real estate investment are likely to experience a sharp rebound," it said. "Prices are likely to remain subdued.
"One Chinese analyst said a slowdown in property investment had limited supply, causing prices to edge higher."In general, home prices will maintain a trend of stable increases in future," Li Huiyong, a Shanghai-based economic analyst at Shenyin Wanguo Securities, told AFP.
Most Shanghai-listed property developers gained in morning trade Monday, with Guangzhou Donghua Enterprise jumping 3.85 percent to 6.48 yuan ($1.02) and Beijing Vantone Real Estate rising 1.50 percent to 4.05 yuan.
By AFP
Out of 70 cities tracked by the government, 43 registered month-on-month falls in home prices in May, the same number as April, the National Bureau of Statistics said in a statement.
China has implemented several measures aimed at limiting runaway property prices for more than a year, including bans on buying second homes, hiking minimum down-payments and introducing property taxes in certain cities.
But the cities that recorded rises in home prices doubled to six, including Tianjin and Dalian in the north, suggesting prices have started to rebound despite controls, analysts said.Prices were unchanged in 21 cities, the bureau said.
The government has been encouraging banks to lend to first-time home buyers while at the same time seeking to clamp down on speculative demand.China cut interest rates on June 8, which analysts believe could bring new life to the market.
"The government insists that its policy controls remain in place, but they do seem to be fraying at the edges," Capital Economics said in a research report last week.
"But neither property prices nor real estate investment are likely to experience a sharp rebound," it said. "Prices are likely to remain subdued.
"One Chinese analyst said a slowdown in property investment had limited supply, causing prices to edge higher."In general, home prices will maintain a trend of stable increases in future," Li Huiyong, a Shanghai-based economic analyst at Shenyin Wanguo Securities, told AFP.
Most Shanghai-listed property developers gained in morning trade Monday, with Guangzhou Donghua Enterprise jumping 3.85 percent to 6.48 yuan ($1.02) and Beijing Vantone Real Estate rising 1.50 percent to 4.05 yuan.
By AFP
China May home prices fall
BEIJING: Average home prices in China's 70 major cities fell 1.5 percent in May from a year earlier, Reuters calculations based on official data published on Monday showed, and the pace of decline picked up in major cities such as Shanghai.
It was the third straight monthly decline on a year-on-year basis since the government imposed strict curbs on property speculation more than two years ago, with the price decline deepening from a fall of 1.2 percent in April.
In month-on-month terms, home prices fell 0.1 percent, the eighth straight decline since the Reuters weighted index was launched in January 2011.
The National Bureau of Statistics said new home prices fell 1.2 percent in Beijing in May from a year earlier and were down 1.6 percent in Shanghai.
Month-on-month, they remained unchanged in Beijing and were down 0.1 percent in Shanghai.
Many Chinese buyers worry about a rebound in property prices as the government loosens monetary policy to spur a slowing economy, although Beijing has retained its administrative curbs on the real estate market, local media reported on Monday.
"It seems home prices and tightening policies have reached their bottom so quite a few home buyers are starting to panic again," the People's Daily, the mouthpiece of China's ruling Communist Party, said in an analytical report. This is reminiscent of 2009 when prices doubled in several months after Beijing rolled out a 4 trillion yuan ($628.43 billion) stimulus package, the newspaper said.
China has relaxed monetary and fiscal policies after a more than two-year long tightening campaign to cool the country's red-hot property market as the euro zone debt crisis hit global financial markets and braked domestic growth.
The central bank cut interest rates on June 7, the first such move in more than three years, after it lowered banks' reserve requirement ratio three times since November.
"Although these measures are not aimed at salvaging the property market, they are a shot in the arm for the cash-strapped real estate market," the People's Daily added.
Meanwhile, many Chinese cities have relaxed policies, although the central government has maintained its curbs against speculators.
These measures have changed market sentiment and property sales have shown signs of a recovery since March.
The semi-official China Securities Journal reported on Monday that transactions of new and existing homes combined rose 46.5 percent in Beijing in the first half of June as compared with the same period last year, citing data from the local housing bureau website.
The newspaper also cited local consultancy Home Link as saying that 21 of the 76 new property projects that hit the market so far this year saw a rise in transaction prices.
However, high inventories will cap any quick rebound in home prices in the near term, it cited Home Link analyst Chen Xue as saying.
Vanke <000002.SZ>, China's largest developer by sales, said earlier this month it would take about 11 months to sell down unsold stocks in key cities such as Beijing, Shanghai and Shenzhen.
The company's sales rose 19 percent in May from the previous month to 10.72 billion yuan ($1.68 billion), reversing a decline in April.
($1 = 6.3651 Chinese yuan)
By Reuters
It was the third straight monthly decline on a year-on-year basis since the government imposed strict curbs on property speculation more than two years ago, with the price decline deepening from a fall of 1.2 percent in April.
In month-on-month terms, home prices fell 0.1 percent, the eighth straight decline since the Reuters weighted index was launched in January 2011.
The National Bureau of Statistics said new home prices fell 1.2 percent in Beijing in May from a year earlier and were down 1.6 percent in Shanghai.
Month-on-month, they remained unchanged in Beijing and were down 0.1 percent in Shanghai.
Many Chinese buyers worry about a rebound in property prices as the government loosens monetary policy to spur a slowing economy, although Beijing has retained its administrative curbs on the real estate market, local media reported on Monday.
"It seems home prices and tightening policies have reached their bottom so quite a few home buyers are starting to panic again," the People's Daily, the mouthpiece of China's ruling Communist Party, said in an analytical report. This is reminiscent of 2009 when prices doubled in several months after Beijing rolled out a 4 trillion yuan ($628.43 billion) stimulus package, the newspaper said.
China has relaxed monetary and fiscal policies after a more than two-year long tightening campaign to cool the country's red-hot property market as the euro zone debt crisis hit global financial markets and braked domestic growth.
The central bank cut interest rates on June 7, the first such move in more than three years, after it lowered banks' reserve requirement ratio three times since November.
"Although these measures are not aimed at salvaging the property market, they are a shot in the arm for the cash-strapped real estate market," the People's Daily added.
Meanwhile, many Chinese cities have relaxed policies, although the central government has maintained its curbs against speculators.
These measures have changed market sentiment and property sales have shown signs of a recovery since March.
The semi-official China Securities Journal reported on Monday that transactions of new and existing homes combined rose 46.5 percent in Beijing in the first half of June as compared with the same period last year, citing data from the local housing bureau website.
The newspaper also cited local consultancy Home Link as saying that 21 of the 76 new property projects that hit the market so far this year saw a rise in transaction prices.
However, high inventories will cap any quick rebound in home prices in the near term, it cited Home Link analyst Chen Xue as saying.
Vanke <000002.SZ>, China's largest developer by sales, said earlier this month it would take about 11 months to sell down unsold stocks in key cities such as Beijing, Shanghai and Shenzhen.
The company's sales rose 19 percent in May from the previous month to 10.72 billion yuan ($1.68 billion), reversing a decline in April.
($1 = 6.3651 Chinese yuan)
By Reuters
Wednesday, June 13, 2012
Chinese green building expert to share expertise
PETALING JAYA: In the effort of promoting a greener and more efficient living environment, Green Building Index Sdn Bhd (GBI) had invited the senior vice president of BROAD Group from China, Juliet Jiang, to share her expertise in building a green building efficiently at the Green Building International series 2012.
This Chinese construction company completed a 30-storey tower that currrently serves a hotel in Hunan province in 15 days. The video of this project had drawn the attention of millions of Youtube viewers since it was posted.
“We hope the focus is not just on the amount of time taken to complete this project. We would like to emphasise that we do not compromise quality in the process and would like to highlight the sustainability technology behind it,” Jiang said in a statement.
“The building had passed the resistance test of a level nine earthquake. It conserves energy of up to five times compared with that of a conventional construction, and provides air that is 20 times purer than the traditional buildings through our innovative air purification system.”
The accomplishment is made possible because 93% of the building materials are manufactured in the factory. The company welcomes global franchisees to adopt this model and build such factories locally. In supporting the company's value to be green, the factory should be located no more than 500km from the construction site.
There are currently six factories in China in different provinces. Besides China, BROAD Group has also set foot in India. These franchisees have made full payment for the transfer of technology which costs US$34mil for a population of 10 million and US$50mil for a population of 50 million.
Architect Dr Tan Loke Mun, one of the GBI Accreditation Panel, opined that the compressed period of accomplishing a construction project would reduce the work hazards faced by construction workers on the site, wastage and traffic jams.
“Financially, this will help construction companies save up on interest costs,” he said.
The organiser of the series hopes that Malaysians will be inspired to make a difference to create a more sustainable and efficient living environment through this kind of innovation.
“All parties ranging from the consultants to the end users will benefit if the span of construction projects are cut. This can reduce the number of abandoned projects,” Tan said.
By The Star
This Chinese construction company completed a 30-storey tower that currrently serves a hotel in Hunan province in 15 days. The video of this project had drawn the attention of millions of Youtube viewers since it was posted.
“We hope the focus is not just on the amount of time taken to complete this project. We would like to emphasise that we do not compromise quality in the process and would like to highlight the sustainability technology behind it,” Jiang said in a statement.
“The building had passed the resistance test of a level nine earthquake. It conserves energy of up to five times compared with that of a conventional construction, and provides air that is 20 times purer than the traditional buildings through our innovative air purification system.”
The accomplishment is made possible because 93% of the building materials are manufactured in the factory. The company welcomes global franchisees to adopt this model and build such factories locally. In supporting the company's value to be green, the factory should be located no more than 500km from the construction site.
There are currently six factories in China in different provinces. Besides China, BROAD Group has also set foot in India. These franchisees have made full payment for the transfer of technology which costs US$34mil for a population of 10 million and US$50mil for a population of 50 million.
Architect Dr Tan Loke Mun, one of the GBI Accreditation Panel, opined that the compressed period of accomplishing a construction project would reduce the work hazards faced by construction workers on the site, wastage and traffic jams.
“Financially, this will help construction companies save up on interest costs,” he said.
The organiser of the series hopes that Malaysians will be inspired to make a difference to create a more sustainable and efficient living environment through this kind of innovation.
“All parties ranging from the consultants to the end users will benefit if the span of construction projects are cut. This can reduce the number of abandoned projects,” Tan said.
By The Star
Monday, June 4, 2012
Debt, property risks curb China stimulus firepower
BEIJING: Investors counting on China to repeat its huge 2008-09 stimulus to backstop global economic growth are failing to recognise Beijing's limited scope to deliver another major spending surge.
The 4 trillion yuan ($628 billion) stimulus package launched to counter the post-Lehman global crisis won worldwide applause but left a stellar bill - a 10.7 trillion yuan ($1.7 trillion) mountain of local government debt, the risk of sour loans as growth slows and a super-heated property market.
Add in a naturally declining growth rate and China's ability and willingness to deliver a forceful response to mitigate the global impact from Europe's deepening debt crisis are seriously curtailed, analysts say.
"Not only is the policy room smaller, but the incentives for the government to produce a large stimulus package are smaller," Qinwei Wang, China economist at Capital Economics in London, told Reuters.
The National Development and Reform Commission (NDRC), China's top economic planning agency, is fast tracking investment projects to support economic growth, expected by economists to slide this year to its weakest pace since 1999.
Premier Wen Jiabao's had pledged to make the task of supporting growth more prominent, although the latest spending push is more cautious and selective than the 2008-09 stimulus, focusing on infrastructure, steel and green energy projects.
"The size of the stimulus this time round will be much smaller judging by both the needs and the constraints," Lu Feng, an economist at Peking University, said.
Few analysts can give an exact tally on the "mini" stimulus, which also includes tax cuts and subsidies for consumers.
Beijing has pledged to stabilise growth with policy fine-tuning. So far that has also included three cuts in banks' reserve ratios since November. There is little sign that Beijing will loosen its grip soon on the property sector, as it did in 2008.
Back in 2008-09, Beijing sought to stimulate growth in what it described as a "fast and heavy-handed" way. The central bank shifted policy gears to complement the pump-priming, as the economy sank into deflation. "INVESTMENT ADDICTION"
In the dark days of the financial crisis, Beijing won international praise for turning the economy around and bolstering global growth.
But the unfettered spending fuelled economic distortions, ranging from over-investment to a come-back of state-owned monopolies.
The new investment push has already drawn fire from some Chinese academics, who argue that the short-term gain in economic growth could further worsen the economy's structure. For example, investment accounted for half of GDP growth.
"This will deepen the economic imbalances and make the further adjustments even more difficult," said Zhao Xijun, an economist at Renmin University in Beijing.
"It's like taking drugs. It's difficult to give up once you get such investment addiction. It's time to give up the addiction and reform economic structures to help long-term growth."
Although billed as a 4 trillion yuan package, only a quarter of that came from the central government. The rest was largely financed by banks that lent heavily to local governments, resulting in a staggering 10.7 trillion yuan in debt.
Standard Chartered Bank estimates that the total spending as a result of the two-year stimulus could be 10 trillion yuan.
Chinese banks have been told to roll over such loans as local governments face a revenue crunch due to falling land sales. But they are unlikely to open their purse strings again.
"The key constraints are policymakers' hesitation to repeat the mistakes of the 2008 stimulus and banks' reticence to lend on such a grand scale," Stephen Green, chief China economist at Standard Chartered Bank, said in a research report.
Beijing still has formidable fiscal firepower backed by huge revenues, but it also faces a big debt burden and obligations to shore up social security systems.
Various China government agencies have different estimates of the total size of local government debt. Yang Kaisheng, head of the Industrial and Commercial Bank of China, has put total central and local government debt at 43 percent of GDP.
Some analysts put total public debt, including implicit liabilities such as bond issues by the railway ministry, policy banks, and bad loans in the banking system, at 80-90 percent of GDP - higher than the international standard of 60 percent.
Shi Xiaomin, vice president of China Society of Economic Reform, a think-tank under the NDRC, said the new stimulus may not be effective due to the problem of overcapacity.
"Banks are having difficulty lending even though they have money because companies don't want to borrow," he said.
The central bank is widely expected to cut bank reserves further and may even cut bank lending rates to spur growth. REFORMS With China's underlying potential rate of growth falling in line with the country's demographic shifts and the diminishing dividends from entry into the World Trade Organisation and market-based reforms, Chinese leaders feel less urgency to stimulate growth, analysts say.
The government, which has long pledged to wean the economy off dependence on investment and exports, has set an annual GDP growth target of 7.5 percent for 2012. Between 2011 and 2015 it aims for average growth of 7 percent a year.
"China's potential growth rate is falling but it's not entirely a bad thing. If we assume potential rate is 8 percent, that means we don't need to worry too much if growth falls to 7 percent," said Lu at Peking University. China's annual economic growth is expected by analysts to fall to 7.9 percent in the second quarter, the first dip below 8 percent since 2009. They forecast 8.2 percent for 2012, the lowest level since 1999.
Xia Bin, a former adviser to the central bank, said last week that slowing growth alone does not imply a hard landing, as long as the job market and the banking sector remain stable.
In 2008-09, a sudden collapse in China's exports threw some 20 million migrant workers out of job.
Reforms will be the key to averting a sharp slowdown, analysts say. Beijing appears to be moving in the direction.
"New sources of growth need to be unleashed, and we think the government must speed up reforms to encourage more private investment, including in the service sector," Tao Wang, China economist at UBS, said in a research report.
Wang at Capital Economics expects growth to slow to 7.8 percent in the second quarter before rebounding to 8.5 percent in the third, with the full-year rate slowing to 8.5 percent from 9.2 percent in 2011.
But Shi at the think-tank sounded more bearish, expecting full-year growth to slow to around 7 percent.
By Reuters
The 4 trillion yuan ($628 billion) stimulus package launched to counter the post-Lehman global crisis won worldwide applause but left a stellar bill - a 10.7 trillion yuan ($1.7 trillion) mountain of local government debt, the risk of sour loans as growth slows and a super-heated property market.
Add in a naturally declining growth rate and China's ability and willingness to deliver a forceful response to mitigate the global impact from Europe's deepening debt crisis are seriously curtailed, analysts say.
"Not only is the policy room smaller, but the incentives for the government to produce a large stimulus package are smaller," Qinwei Wang, China economist at Capital Economics in London, told Reuters.
The National Development and Reform Commission (NDRC), China's top economic planning agency, is fast tracking investment projects to support economic growth, expected by economists to slide this year to its weakest pace since 1999.
Premier Wen Jiabao's had pledged to make the task of supporting growth more prominent, although the latest spending push is more cautious and selective than the 2008-09 stimulus, focusing on infrastructure, steel and green energy projects.
"The size of the stimulus this time round will be much smaller judging by both the needs and the constraints," Lu Feng, an economist at Peking University, said.
Few analysts can give an exact tally on the "mini" stimulus, which also includes tax cuts and subsidies for consumers.
Beijing has pledged to stabilise growth with policy fine-tuning. So far that has also included three cuts in banks' reserve ratios since November. There is little sign that Beijing will loosen its grip soon on the property sector, as it did in 2008.
Back in 2008-09, Beijing sought to stimulate growth in what it described as a "fast and heavy-handed" way. The central bank shifted policy gears to complement the pump-priming, as the economy sank into deflation. "INVESTMENT ADDICTION"
In the dark days of the financial crisis, Beijing won international praise for turning the economy around and bolstering global growth.
But the unfettered spending fuelled economic distortions, ranging from over-investment to a come-back of state-owned monopolies.
The new investment push has already drawn fire from some Chinese academics, who argue that the short-term gain in economic growth could further worsen the economy's structure. For example, investment accounted for half of GDP growth.
"This will deepen the economic imbalances and make the further adjustments even more difficult," said Zhao Xijun, an economist at Renmin University in Beijing.
"It's like taking drugs. It's difficult to give up once you get such investment addiction. It's time to give up the addiction and reform economic structures to help long-term growth."
Although billed as a 4 trillion yuan package, only a quarter of that came from the central government. The rest was largely financed by banks that lent heavily to local governments, resulting in a staggering 10.7 trillion yuan in debt.
Standard Chartered Bank estimates that the total spending as a result of the two-year stimulus could be 10 trillion yuan.
Chinese banks have been told to roll over such loans as local governments face a revenue crunch due to falling land sales. But they are unlikely to open their purse strings again.
"The key constraints are policymakers' hesitation to repeat the mistakes of the 2008 stimulus and banks' reticence to lend on such a grand scale," Stephen Green, chief China economist at Standard Chartered Bank, said in a research report.
Beijing still has formidable fiscal firepower backed by huge revenues, but it also faces a big debt burden and obligations to shore up social security systems.
Various China government agencies have different estimates of the total size of local government debt. Yang Kaisheng, head of the Industrial and Commercial Bank of China, has put total central and local government debt at 43 percent of GDP.
Some analysts put total public debt, including implicit liabilities such as bond issues by the railway ministry, policy banks, and bad loans in the banking system, at 80-90 percent of GDP - higher than the international standard of 60 percent.
Shi Xiaomin, vice president of China Society of Economic Reform, a think-tank under the NDRC, said the new stimulus may not be effective due to the problem of overcapacity.
"Banks are having difficulty lending even though they have money because companies don't want to borrow," he said.
The central bank is widely expected to cut bank reserves further and may even cut bank lending rates to spur growth. REFORMS With China's underlying potential rate of growth falling in line with the country's demographic shifts and the diminishing dividends from entry into the World Trade Organisation and market-based reforms, Chinese leaders feel less urgency to stimulate growth, analysts say.
The government, which has long pledged to wean the economy off dependence on investment and exports, has set an annual GDP growth target of 7.5 percent for 2012. Between 2011 and 2015 it aims for average growth of 7 percent a year.
"China's potential growth rate is falling but it's not entirely a bad thing. If we assume potential rate is 8 percent, that means we don't need to worry too much if growth falls to 7 percent," said Lu at Peking University. China's annual economic growth is expected by analysts to fall to 7.9 percent in the second quarter, the first dip below 8 percent since 2009. They forecast 8.2 percent for 2012, the lowest level since 1999.
Xia Bin, a former adviser to the central bank, said last week that slowing growth alone does not imply a hard landing, as long as the job market and the banking sector remain stable.
In 2008-09, a sudden collapse in China's exports threw some 20 million migrant workers out of job.
Reforms will be the key to averting a sharp slowdown, analysts say. Beijing appears to be moving in the direction.
"New sources of growth need to be unleashed, and we think the government must speed up reforms to encourage more private investment, including in the service sector," Tao Wang, China economist at UBS, said in a research report.
Wang at Capital Economics expects growth to slow to 7.8 percent in the second quarter before rebounding to 8.5 percent in the third, with the full-year rate slowing to 8.5 percent from 9.2 percent in 2011.
But Shi at the think-tank sounded more bearish, expecting full-year growth to slow to around 7 percent.
By Reuters
Wednesday, May 16, 2012
Slowdown leaves China on shaky ground
HONG KONG: China's property chickens are coming home to roost. Last week's economic data show that a year of falling prices is finally changing developers' speculative behaviour.
After years of boom, most developers, like many investors, have acted as if the downward move were no more than a blip. When barred from getting bank credit, many property companies found funds elsewhere, notably through so-called trust companies, which make loans funded by short-term retail funding.
Throughout 2011, developers merrily continued to add new floor space at the same rate as they had a year earlier.
April's data show there has been a rude awakening. The amount of housing floor space completed dropped 56% from the total figure for January and February, months usually lumped together to account for the New Year's holiday. The shift is more than seasonal the drop off was a milder 35% in the previous two years.
Space under construction also failed to show its usual post-New Year spike. Overall, residential real estate investment grew 4% year-on-year in April a tenth of the rate of a year before. Adjust for inflation, and that's equivalent to no growth at all.
Since new property development accounts for about a tenth of China's gross domestic product building, a modest slowdown will be enough to cause overall economic activity to sputter.
By Reuters
Saturday, May 5, 2012
LBS and China’s JDCL drafting joint project layout plans
KUALA LUMPUR: LBS Bina Group Bhd's partnership with China state-owned company Jiuzhou Development Co Ltd (JDCL) is progressing well with layout plans being drafted and likely to be approved by the China government within three months.
According to a source, JDCL has paid up 200 million yuan for the land held by Dragon Hill Corp Ltd and both LBS and JDCL are preparing the development layout for the 197-acre property.
“LBS and its partner are in the midst of drafting the layout for the mixed development and a resort is in the plan as the property is adjacent to a golf course,” the source said.
It added that the layout should be able to get the state government's approval within the next two to three months.
On whether LBS is considering any venture into the ferry services which JDCL runs, the source pointed out that the Hong Kong-Zhuhai-Macao Bridge was expected to be completed in 2016 and that might have an impact on ferry services.
“If JDCL wants LBS to be involved, LBS can be a shareholder and then it will be involved with the developments there,” the source told StarBizWeek at the LBS media appreciation night.
LBS managing director Datuk Lim Hock San said the memorandum of understanding (MoU) with JDCL signed last month was coming off to a good start and he would be meeting JDCL next week.
“The MoU states that we have to conclude the agreement within six months but, in the meantime, the agreement has not been finalised yet so we have not come up with any mechanism,” he said, adding that he could not share more about the cash and equity deal at the moment.
On the estimated HK$1.65bil (RM652mil) that LBS might receive from the deal, Lim said that “it would be channelled back for developments in Malaysia.”
Last month, LBS's wholly-owned Intellplace Holdings Ltd entered an MoU with JDCL's wholly-owned subsidiary, Jiuzhou Technology Co Ltd, for the sale of equity in two of LBS' companies involved in golf club operations and property development projects in Zhuhai.
LBS is expected to become a substantial shareholder of the Hong Kong Stock Exchange-listed JDCL from the negotiations.
For the Zhuhai project, LBS will not be involved in the financing although it will have a stake in JDCL.
Based on the development plans last year, the gross development value of the project is estimated at 17 billion yuan.
By The Star
Thursday, April 26, 2012
CapitaMalls to build US$365m Beijing mall
HONG KONG: Singapore-based shopping centre developer CapitaMalls Asia said yesterday it would spend US$365 million (RM1.12 billion)to develop a mall in southern Beijing, buying the land from a subsidiary of the Poly Real Estate Group.
The development will feature a seven-storey, 122,000-square-metre mall, representing a total cost of around 19,190 yuan per square metre (RM9,319) for construction and land, the company stated. The project is due for completion in 2015.
CapitaMalls Asia, 65 per cent owned by Temasek, is one of the most active international property developers in China.
This will be its 57th mall in the country.
By Reuters
The development will feature a seven-storey, 122,000-square-metre mall, representing a total cost of around 19,190 yuan per square metre (RM9,319) for construction and land, the company stated. The project is due for completion in 2015.
CapitaMalls Asia, 65 per cent owned by Temasek, is one of the most active international property developers in China.
This will be its 57th mall in the country.
By Reuters
Tuesday, April 24, 2012
BLand bullish on China, looking for more projects
KUALA LUMPUR: Berjaya Land Bhd (BLand) aims to have a bigger presence in China's property market after its maiden commercial development, the Great Mall of China (GMOF) in Yanjiau city, Hebei province, started construction recently.
BLand chief executive officer Datuk Francis Ng said despite the cooling measures by the Chinese government, the country's property market still offered good opportunities for growth.
“We are keen on the tier-two cities such as Xiamen, X'ian, Chengdu and Tianjin as the land cost is relatively cheaper compared with the tier-one cities such as Beijing, Shanghai, Shenzhen and Guangzhou,” Ng told StarBiz.
Ng said the tier-two cities such as Yanjiau city in Hebei province were witnessing huge level of infrastructure investment by the central government which had resulted in unprecedented city building and modernisation initiatives.
He pointed out that tier-two cities “which did not make the cut” earlier would be the cities to watch in the next decade because of the strengthening economies and emerging real estate activities in those cities.
“China's economy has over the last three years grown by over 30% in real terms to become the world's second largest economy.
“The market sentiment is still potentially strong across all major real estate sectors in China given its large and diverse economic activities, a strong presence of domestic firms and multinational companies, and a critical mass of international retailers and hotel operators there,” he said.
BLand's 51%-owned subsidiary, Berjaya Great Mall of China Co Ltd (BGM) is undertaking the development of the GMOC. The balance 49% is owned by Berjaya Group founder Tan Sri Vincent Tan through his private arm, Berjaya Times Square Cayman Ltd.
Ng said Tan bought the 76 acres in 2004 at a cost of RM30mil and in 2008, he divested 51% of his stake to BLand “at cost” of RM15.3mil, although the market value of the land had appreciated to RM2.5bil.
GMOC, billed as the world's largest integrated entertainment and commercial mall development with gross floor area (GFA) of 18.5 million sq ft, is scheduled for completion in 2017.
Presently, the New South China Mall in Dongguan with gross floor area of 9.58 million sq ft is the largest mall in China.
Ng said GMOC was expected to contribute to BLand's earnings by the middle of 2013 with the launch for sale of the retail space in August this year.
Since construction started in 2010, almost 40% of phase one of the project has been completed. Phase one comprising one million sq ft shopping mall and three theme parks is expected to be completed by October 2013.
BLand general manager of group properties and development Michael Pua said the project had received a lot of enquiries and interest.
“The target buyers are the Chinese investors, the local and international retailers,” he said.
By The Star
Low Yat investing up to RM389mil in China-Asean SME centre
KUALA LUMPUR: The Low Yat Group expects to invest 650 million yuan (RM316mil) to 800 million yuan (RM389mil) for all three phases of its China-Asean SME Trade (CASMET) Centre in Changshu, China.
The first phase, which cost about 300 million yuan (RM145mil) was completed in 2011.
“The second and third phases are expected to be completed in the next few years,” said executive director Low Gee Teong at an event to promote CASMET.
He said the second and third phases would have a total floor area of 92,500 sq m and would be developed for commercial and small-office-home-offices.
The centre was developed by the Low Yat Group as a free trade area that will serve as a one-stop centre, providing Asean companies, especially small and medium-sized enterprises (SMEs), the necessary facilities and support needed to explore opportunities in China.
Low said the first phase of CASMET spanning 31,293 sq m comprised seven blocks with 213 units of commercial retail and office space and was built on a gross floor area of 38,341 sq m.
According to CASMET director and general manager Rebecca Deng, the first phase of the trade centre has secured an occupancy rate of 40%.
“About 15% of the companies are from China and the remainder from Asean,” she said, adding that there were six to seven companies from Malaysia already trading in CASMET.
Deng said the Malaysian companies were from the palm oil, batik and coffee industries.
CASMET director Datuk J. Jegathesan said estimates that China's economy might not exceed its previous year's growth of 9.2% this year was “not worrying” and should not deter local SMEs to invest in China.
“Every industry in the world goes through an economic cycle. China is not exempt from that cycle and it should not be a concern,” he said.
Meanwhile, Low said CASMET would further enhance the social, cultural and economic relations, exchanges and co-operation among China and Asean countries Brunei, Cambodia, Indonesia, Myanmar, the Philippines, Singapore, Thailand, Vietnam and Malaysia.
By The Star
Saturday, April 21, 2012
BLand seeking partners for Great Mall of China
KUALA LUMPUR: Berjaya Land Bhd (BLand) is in talks with several Malaysian and foreign investors to help develop Phase Two of its RM7.5 billion Great Mall of China (GMOC) project in Hebei Province in China.
Its chief executive officer Datuk Francis Ng Sooi Lin said BLand is also seeking funding for the second phase of the project.
BLand is developing the integrated mall complex, the biggest in the world, through Berjaya Great Mall of China Co Ltd (BGMOC).
BGMOC is a 51:49 joint venture between BLand and Berjaya Group founder Tan Sri Vincent Tan, via his private arm Berjaya Times Square Cayman Ltd.
Ng said two of the biggest banks in Malaysia have offered financing of up to US$200 million (RM614 million) each for the phase two development.
"We are also looking at Bank of China for our funding options. We have not made a decision," Ng told Business Times in an interview.
Ng said Phase Two is estimated to cost around RM3 billion and will take three to five years to complete.
The GMOC project will cover over two million sq ft of retail space and feature two hotels, two serviced apartments, office towers, a convention centre, a theatre and a parking complex. There will also be an indoor monorail, three theme parks and aquarium.
Phase Two will comprise the development of hotels, serviced apartments, office towers, convention centre, theatre and monorail. Piling work will begin in June, Ng said.
The phase one construction, comprising a retail and pedestrian mall, three theme parks and parking bays, began in 2010 and is expected to complete by October next year.
BGMOC has a paid-up capital of US$165 million (RM507 million), almost half of which has been utilised for the phase one development.
Ng said the key selling points of the GMOC are the theme parks, the aquarium, the theatre and the 455,000 sq ft convention centre with seating capacity of 10,000.
"These will be the main attractions for the project. The main challenge will be funding for Phase Two. Once we have secured the financing, we expect the project to sell on its own," Ng said.
By Business Times
Its chief executive officer Datuk Francis Ng Sooi Lin said BLand is also seeking funding for the second phase of the project.
BLand is developing the integrated mall complex, the biggest in the world, through Berjaya Great Mall of China Co Ltd (BGMOC).
BGMOC is a 51:49 joint venture between BLand and Berjaya Group founder Tan Sri Vincent Tan, via his private arm Berjaya Times Square Cayman Ltd.
Ng said two of the biggest banks in Malaysia have offered financing of up to US$200 million (RM614 million) each for the phase two development.
"We are also looking at Bank of China for our funding options. We have not made a decision," Ng told Business Times in an interview.
Ng said Phase Two is estimated to cost around RM3 billion and will take three to five years to complete.
The GMOC project will cover over two million sq ft of retail space and feature two hotels, two serviced apartments, office towers, a convention centre, a theatre and a parking complex. There will also be an indoor monorail, three theme parks and aquarium.
Phase Two will comprise the development of hotels, serviced apartments, office towers, convention centre, theatre and monorail. Piling work will begin in June, Ng said.
The phase one construction, comprising a retail and pedestrian mall, three theme parks and parking bays, began in 2010 and is expected to complete by October next year.
BGMOC has a paid-up capital of US$165 million (RM507 million), almost half of which has been utilised for the phase one development.
Ng said the key selling points of the GMOC are the theme parks, the aquarium, the theatre and the 455,000 sq ft convention centre with seating capacity of 10,000.
"These will be the main attractions for the project. The main challenge will be funding for Phase Two. Once we have secured the financing, we expect the project to sell on its own," Ng said.
By Business Times
Friday, April 20, 2012
Berjaya’s Great Mall of China to be ready by 2017
BERJAYA Land Bhd (BLand) is building the world’s biggest integrated mall complex estimated to be worth about RM7.5 billion on a 32ha site in China’s Hebei Province, its chief said.
Called Great Mall of China, the 18.5 million sq ft development, which is similar to the concept of Berjaya Times Square in Kuala Lumpur, is expected to be completed within the next five years, said BLand chief executive officer Datuk Francis Ng Sooi Lin.
Once completed, the project will feature more than two million sq ft of retail space, two hotels, two serviced apartments, office towers, convention centre, theatre and a parking complex.
There will also be an indoor monorail, three theme parks and acquarium.
Berjaya Great Mall of China Co Ltd (BGMOC), a 51 per cent subsidiary of BLand, is undertaking the development.
Berjaya Group founder Tan Sri Vincent Tan holds 49 per cent of BGMOC through Berjaya Times Square Cayman Ltd.Under the first phase development, BGMOC will build a retail and pedestrian
mall, each with one million sq ft of space, an extreme park, a family park and a water park, as well as parking facilities.
Ng said the gross development cost for phase one was estimated at RM1.5 billion.
BGMOC has a paid-up capital of US$165 million (RM506.6 million) and almost half the amount had been utilised for the Phase
One development, Ng said in an interview with Business Times.
Some 40 per cent of Phase One had been completed and the remaining portion was expected to be completed by October next
year, Ng said.
“We are quite confident we can carry out Phase One without loans. By August, we will open for sale around 540,000 sq ft of space at the retail mall and hope to rake in some RM750 million in gross development value,” Ng said.
He said BLand would retain the remaining 460,000 million sq ft of retail space and the one million sq ft pedestrian mall for recurring income.
Currently, the world’s biggest mall is The Dubai Mall in United Arab Emirates, with a built-up area of 12.1 million sq ft.
By Business Times
Wednesday, April 18, 2012
LBS Bina in MoU to sell 100% stake in Zhuhai ops for up to HK$1.65bil
KUALA LUMPUR: LBS Bina Group Bhd is looking to sell up to 100% of two companies involved in golf club operations and property development projects in Zhuhai, China for an estimated HK$1.65bil.
LBS had on Wednesday signed a signed a memorandum of understanding (MoU) with Hong Kong Stock Exchange-listed Jiuzhou Development Company Ltd's unit to dispose of up to 100% but not less than 60% equity interest in Dragon Hill Corp Ltd.
LBS managing director Datuk Lim Hock San said the MoU provided for the parties to negotiate exclusively with each other and finalise the scope and terms of a sale and purchase agreement.
The MoU will kick start negotiations for Jiuzhou Development's unit Jiuzhou Technology Company Ltd to acquire Dragon Hill, which through its two subsidiaries, own and operate the 36-hole Lakewood Golf Club and its adjoining property development project in Zhuhai.
By The Star
LBS had on Wednesday signed a signed a memorandum of understanding (MoU) with Hong Kong Stock Exchange-listed Jiuzhou Development Company Ltd's unit to dispose of up to 100% but not less than 60% equity interest in Dragon Hill Corp Ltd.
LBS managing director Datuk Lim Hock San said the MoU provided for the parties to negotiate exclusively with each other and finalise the scope and terms of a sale and purchase agreement.
The MoU will kick start negotiations for Jiuzhou Development's unit Jiuzhou Technology Company Ltd to acquire Dragon Hill, which through its two subsidiaries, own and operate the 36-hole Lakewood Golf Club and its adjoining property development project in Zhuhai.
By The Star
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