TSR arm buys land in PD

TSR Capital Bhd’s unit TSR Ocean Park Sdn Bhd has entered into three sale and purchase agreements with Best Reap Sdn Bhd to buy 19.2 ha of land in Port Dickson, Negri Sembilan for RM36.8 million and develop a mixed development project.

In a filing to Bursa Malaysia yesterday, TSR said the proposed acquisition is in line with its expansion plans in Negri Sembilan and to increase its land bank to generate long-term sustainable income.

By Business Times

KL Metro plans to launch projects worth RM300m

Boutique property developer Kuala Lumpur Metro Group will launch two resort developments and a housing project worth a combined RM300 million in Port Dickson, Bangi, and Penang, over the next eight months.

The low-profile group, which made a mark in property development when it launched its landmark project - the Legend International Water Homes in Port Dickson in 2003, is also planning to expand into China and Vietnam.

"We are looking at resort developments in China and Vietnam. We believe there is a market for resort-type products. We have identified the local partners, but plans are still preliminary," said KL Metro managing director Datuk Low Tak Fatt.

Locally, KL Metro will launch Phase 3 of the Legend Water Homes valued at RM45 million and 30 units of semi-detached houses in Bangi, worth RM25 million, by December.

By mid-2010, KL Metro will launch The Hibiscus in Penang, which features 460 units of five-star water homes at Teluk Kumbar.
The Penang development is worth some RM200 million and KL Metro is targeting buyers from Asia Pacific, Europe and the Middle East.

"Demand for water homes in Malaysia is greater than supply so we expect our projects to do very well," Low told a media briefing on the second phase of its Legend Water Homes in Kuala Lumpur yesterday.

Phase 2, which will open on November 1, offers 166 water homes, 44 garden chalets and 39 sky pool villas.

Priced from RM400,000 to RM700,000 each, some RM160 million or 99 per cent of the properties have been sold, Low said.

Majority of the buyers were from the Hong Kong, Singapore, Macau, the Middle East and some European countries, with an option to lease back at an 8 per cent gross rental income return a year.

Low said he expects 50 per cent occupancy in the first year, with average promotional room rates starting from RM550 per night to RM900.

He said KL Metro is aiming for occupancy to grow by 10 per cent per year via aggressive marketing.

"Despite the downturn of the economy and credit crunch worldwide, we still managed to complete Phase 2 three months ahead and sell all the units. We are proud of this development," Low said.

Phase 1, which has 329 units, was completed in 2006 and fully sold within two years.

The Balinese-themed resort took the "Best Architecture" and "Best Development" titles at the CNBC International Property Awards in London in 2007.

By Business Times (by Sharen Kaur)

TSR gets nod for RM1.8b tourism project in Port Dickson

TSR Capital Bhd, a construction company, has won the Negri Sembilan state government's approval to develop a RM1.8 billion tourism project over 10 years.

It plans to build a tax-free mall, Customs and Immigration complex, international ferry terminals, aquarium and water theme parks, hotels, convention centre, theme shops, medical centre and apartments in Port Dickson.

The project, TSR Ocean Park, will be located on a 40ha beachfront site, which will be made available by the state government and private owners, it said in a statement to Bursa Malaysia.

"The first phase involves the development of two- to three- storey retail shops and seafront promenade, shop-offices, apartments, with an estimated gross development value of RM100 million," it added.

The project will be within walking distance of the Port Dickson bus terminal and 10-15 minutes drive from the Army Museum, Lukut Museum and major highways.

TSR will start construction immediately once approval is received from the relevant authorities.

It will use internal funds and borrowings to finance the project.

By Business Times

KL Metro in final sales push for Port Dickson project

PROPERTY developer Kuala Lumpur Metro Development Sdn Bhd will continue to push overseas sales for a tenth of the total units left unsold in a Port Dickson water homes project, just months away from its opening.

The Legend International Water Homes, located at two miles off Jalan Seremban in the beach town, started construction in January 2007 and will be opened to owners and holidaymakers this October.

"We will continue to market the project overseas," executive director Datuk Yap Chuan Thai said at a media briefing in Kuala Lumpur yesterday.

Over 90 per cent of the project, with gross development value of RM150 million, were sold to mainly foreign buyers from the UK, Hong Kong, Singapore, Macau, the Gulf states and some European countries, Yap said. Buyers have the option to lease back with an 8 per cent gross rental income return a year.

The project has 166 water homes, 44 garden chalets and 39 sky pool villas that are priced between RM400,000 and RM700,000 each.

With an average size of 826 sq ft to 1,312 sq ft, they are all studio units equipped with private pools, designed in Balinese concept.

Mandy Chew Siok Cheng, president of The Legend Group of Hotels and Resorts, which will manage the property, said it expects 68 per cent occupancy in the first year. Room rates average around RM400 per night.

Yap said the global economic turmoil has not affected Kuala Lumpur Metro's sales. The company plans to start another similar project called the Hibiscus in Penang next year.

"We have not finalised the layout yet, so there's not much details. But with our strong marketing network overseas, we are confident sales," Yap said.

By Business Times (by Chong Pooi Koon)

Make beach rehab a priority in Port Dickson

PORT Dickson (PD) is now being earmarked for a massive development plan that aims to inject new life into the town's tourism business.

But whatever grand plan the state government has, it has to be mindful of the sins of yesteryears, which have left this somewhat sleepy town, quite honestly, a model of wanton development.

News is that PD may be declared a duty-free zone. Also on the drawing board are a new Customs, Immigration and Quarantine complex on reclaimed land, and a new jetty.

The plan is simple: PD is a traditional tourist destination and much is needed to liven up this town.

But plans have to be prioritised and much soul searching is needed to understand why PD has not fulfilled its potential as a premier beach closest to the Klang Valley.

The tried and tested route of “if you build, they will come” for PD is one that has been attempted before.

Developers, thinking that PD would benefit from its proximity to KL International Airport, have flooded this town with apartments and condominiums, many of which are, sadly, left idle today.

Apart from the deserted buildings, there has also been poor planning with regard to its hotels. Hotels and condominiums currently obstruct public access to the some of the town's best beaches.

This is frustrating for me as I used to visit PD frequently as a boy. My father grew up in this town and worked there for a few years.

The once-famed pristine beaches - a figment of one's imagination you might say if you look at the state of the beaches today - are crying for much needed rehabilitation.

PD's attraction used to be its beaches and efforts should have been made to protect this jewel instead of leaving it in disrepair. And the town today is an example of how development, almost unplanned and one-sided, has left a town worse off than before.

The authorities should know by now that development, if properly planned, does bring about vast benefits. Otherwise, it would be a step backwards instead of forward.

I don't know whether it is too late to save PD. But the authorities should spare no effort to improve the socio infrastructure in this town.

Money should also be directed at rehabilitating its polluted beaches and improving public facilities. This should, at least, be done concurrently with any plans to put up more steel, cement and structures in PD.

By The Star (by Jagdev Singh)

Oilcorp unit to raise up to RM300m via AIM listing

Proceeds to be used for development of four projects

PETALING JAYA: Oilcorp Bhd’s property unit, D’Tiara Corp Sdn Bhd, is looking to raise RM250mil to RM300mil in proceeds from its proposed Alternative Investment Market (AIM) listing on the London Stock Exchange.

Oilcorp executive director Pua Yow Liang said it was still finalising the actual amount with its advisor in London, but that was the target it planned to raise.

“The proceeds will only be used for the development of the four projects that we currently have,” he told a press conference after the company EGM yesterday.

Oilcorp’s shareholders unanimously approved the company’s proposal to list its property arm on the AIM. The listing is slated to take place in May.

Pua Yow Liang

D’Tiara Corp owns D’Tiara Beach Resort in Port Dickson and has three ongoing developments – D’Tiara Office & Hotel Suites in Kuala Lumpur, D’Tiara Waterfront Resort in Pulau Indah and D’Tiara Leisure & Health Resort in Genting.

While there are no plans to undertake additional projects at present, Pua said D’Tiara Corp’s post-listing plans would be to expand its business to neighbouring countries by franchising the D’Tiara brand and resort-operation concept.

“We are in the process of identifying potential joint partners in Thailand, Indonesia and Cambodia. Perhaps we will formalise our partnerships by year-end,” he said.

On the outlook of the local property scene, Pua opined that it was still “doing well” underpinned by market expectations that the country would be able to achieve 6% gross domestic product this year, given last year’s robust performance.

“We view the current volatility as a short-term consolidation process. The take-up rate for office and residential property launches in Kuala Lumpur and the Klang Valley are still doing very well,” he said, adding that foreign investors were now more focused on Asian markets due to the subprime crisis in the US.

Pua said that in line with the AIM listing exercise, the company would conduct road shows to attract foreign institutional investors and fund managers to take up shares in D’Tiara Corp.

“This is an opportunity for foreign investors to participate in Malaysian property development,” he said, adding that the target markets for the road shows would be Europe and the Middle East.

By The Star (by Suraj Raj)

D'Tiara aims to raise RM300m in UK

D'TIARA Corp Ltd, the property arm of Oilcorp Bhd, expects to raise an estimated RM300 million from an initial public offering (IPO) in London, the UK.

D'Tiara executive director Pua Yow Liang said the money will be used to fund its projects and as working capital for the D'Tiara Beach Resort in Port Dickson, Negri Sembilan.

The actual proceeds will depend on investor interest, which will be gauged during roadshows for the IPO, Pua told reporters after Oilcorp's extraordinary general meeting (EGM) in Kuala Lumpur yesterday.

The roadshows, which will kick off next month, will cover the Middle East and Europe. D'Tiara's shares are due to be listed on the London Stock Exchange's AIM in May.

D'Tiara has three ongoing projects valued at RM2 billion: D'Tiara Waterfront Resort in Selangor, D'Tiara Leisure and Health Resort in Pahang and D'Tiara Office and Hotel Suites in Kuala Lumpur.

D'Tiara will also be posting its first-ever profits after three years of losses.

Oilcorp's shareholders approved the proposed IPO of D'Tiara at the EGM yesterday.

As part of the listing plan, Oilcorp is selling its entire interest in D'Tiara Corp Sdn Bhd for RM119.75 million in exchange for new shares in D'Tiara.

By New Straits Times (by Roziana Hamsawi)

Wellness Zone boost for tourism industry

TOURISM Malaysia has initiated a Wellness Zone project in Port Dickson, Negri Sembilan, to attract foreign tourists and further grow this tourism segment.

Deputy secretary general of Tourism Datuk Dr Ong Hong Peng said the Wellness Zone, initiated in 2007, will kick off within the next one to two years.


HEALTHY DISCUSSION: (From Left) Ong, Datuk Dr Chan Kok Ewe from Island Hospital and Woodman

The project covers a 61km zone from Lukut to Pasir Panjang, Port Dickson.

"It will be an integrated area offering medical, wellness and spa facilities," Ong told Business Times when met at the Medical Travel World Congress 2008 on Tuesday.

He said a pilot project will be set up at Palm Springs Resort City.

The resort's master developer is Tanco Holdings Bhd while the Genium group will be involved with the Wellness Zone within the resort. Genium will both develop and manage this segment.

Among the treatments that will be offered in the zone are medical, aesthetic, cosmetic surgery, dental services, wellness treatment and traditional medicine.

Ong said that businesses in the zone will be given tax incentives which include 70 per cent of income generated by companies through services rendered to foreign citizens be tax-exempted for 10 years.

Machines and equipment will also be given tax exemption, he said.

On why Port Dickson was chosen, Ong said: "It is close to Kuala Lumpur and is associated with relaxation."

Wellness tourism is a component of health tourism but is distinguished from medical tourism.

At the conference meanwhile, "Patients Beyond Borders" author Josef Woodman said there are between two million and three million medical travellers worldwide, with a bulk of them going to Southeast Asia, North Asia and India.

Woodman estimates the growth of this industry at 20-34 per cent annually, and that by 2010, the global market for this business will be at US$40 billion (RM128.8 billion).

By New Straits Times (by Vasantha Ganesan)