Breaking new ground with The Atmosphere

Artist impression of an aerial view of phase 2E or Lava, of The Atmosphere in Seri Kembangan.

The Atmosphere sets a new benchmark for commercial developments in Seri Kembangan, Selangor with its unique hybrid “shopping mall” design for its 20.1-acre commercial centre, says Tempo Properties Sdn Bhd chief executive officer Khoo Boo Hian.

This commercial centre is the second phase of The Atmosphere, which aims to integrate leisure, retail and office elements in a central hub.

“They are shopoffices but the commercial centre looks and feels like a shopping mall. This hybrid design is unique in Malaysia,” says Khoo.

Khoo: ‘The biggest headache for a commercial development is the car park’.

Khoo points out that the unique design of the commercial centre has resulted in “two ground floors”, with an elevated and landscaped boulevard on the second storey.

“With four-storey shopoffice blocks, usually the top two stories don't carry a lot of value. But with our boulevard level, the third level also becomes a ground floor. People come up to the boulevard level using the escalator, and they can patronise the shops.”

Beneath the boulevard level are two levels of covered car park bays, and it was this design element that led to the creation of the “two ground floors” for the centre.

“The biggest headache for a commercial development is the car park. We were toying around with the idea of a dedicated car park block, which is very inconvenient for people. So we spoke to the architects and authorities. We said ... can we have a situation where we do away with the back lane? So, we covered the back lane. That was how the boulevard level was conceptualised.”

Khoo says this also means patrons of the centre benefit from the covered car park and the open courtyard design with space for events.

Highlights of The Atmosphere's commercial centre include a 1.4-acre public park, covered walkways, public toilets, sheltered boulevards, alfresco plazas, open lawns, an open courtyard design for events, and high ceilings for retail outlets, 22 to 28-feet wide shop frontage as well as the spacious 20 to 30 feet wide walkways.

There are 1,600 covered and open-air car park bays. Areas in the commercial centre are inter-linked via covered walkways, escalators and lifts.

“You can walk from one end to the other without getting wet,” says Khoo.

The Atmosphere's commercial centre, with a gross development value (GDV) of RM370mil, was launched in 2009.

Unit prices ranged from RM1mil to RM4.5mil, and the average selling price was RM300 per sq ft.

Khoo says the 136 units in the earlier launches were sold out, and the final launch (phase 2E or Lava) has a 70% take-up rate.

“Investors have benefited in terms of capital appreciation as the units that have been handed over were sold on the secondary market with almost 100% appreciation in price.”

Phase 2E, which will consist of 54 retail and office units, is expected to be completed by end-2013.

Khoo also points out that phase 2E has a “three ground floors” concept with raised courtyard plazas.

The project also won the category of Best Mixed Use Development in the Asia Pacific region (including 5 stars for Malaysia) in the 2011 Asia Pacific Property Awards 2011 (in association with Bloomberg Television).

It is also the first commercial development in the South Klang Valley to be Green Mark certified by Singapore's BCA (Building and Construction Authority).

Khoo says this will translate into lower water and energy bills and maintenance cost, as well as an enhanced work environment.

“To get the Green Mark certification, we have features like heat reflective polycarbonate roofing from Korea to cover the boulevards, water and electricity saving fixtures and fittings, and reflective glass for the shop offices. Together with disabled-friendly features such as wheelchair ramps and tactile tiles, we spent an extra RM1.5mil. But we felt that it was necessary to enhance this development rather than just building another high-density commercial area.”

Khoo says the commercial centre is a strata-title development, “so investors pay some management fees but they get 24-hour security and tip-top maintenance.”

The Atmosphere has three phases of development, with the first phase being a Giant hypermarket on a nine-acre site.

“The Giant Hypermarket chain bought the land in 2008 for about RM30mil. The hypermarket opened two years ago,” says Khoo.

Another 6.1ha remains to be developed as the third phase on the 53-acre site of The Atmosphere, and Khoo says various options are being planned.

“We are looking at close to a GDV of RM1bil eventually for the 53-acre site,” says Khoo.

Khoo also points out that The Atmosphere is strategically located near to areas such as Prima Tropika, Alam Santuary, 16 Sierra, D'Alpinia, Taman Putra Permai and Taman Equine.

“We are in the heart of the Golden Triangle of South Klang Valley with Puchong, Putrajaya and Seri Kembangan forming the axis.” He says Seri Kembangan is a rapidly growing property hotspot, with high demand for commercial zones.

Khoo cites a Spectrum Research Asia report that last year said the residential population of Seri Kembangan within a 20-minute drive time zone was 1.6 million people.

The project is developed by The Atmosphere Sdn Bhd, a joint venture company that is 60% owned by Eksons Corp Bhd, with the remainder owned by Tempo Properties.

Eksons Corp, which is listed on the Main Market of Bursa Malaysia, is one of the largest manufacturers of tropical thin plywood in the Asia Pacific region.

Tempo Properties provides project management support and expertise.

Being different

Khoo says Tempo Properties is a boutique property developer that aims to create a win-win situation for investors, business owners and patrons in commercial developments such as The Atmosphere.

“We aim to provide investors with something that they don't know they want. We think differently.”

He points out that prices for units at The Atmosphere was the highest for commercial developments in the area.

“Our intention was to set ourselves apart, and come up with something that is unique.”

Tempo Properties has its roots in Yoon Hin Sdn Bhd which is a rice wholesaler in Seremban, Negeri Sembilan.

Yoon Hin diversified into property development by setting up Tempo Properties in 1995, and its first project was developing the 48-acre Taman Cenggal Utama near the Seremban International Golf Club in 1997.

Taman Cenggal Utama consisted of 492 units of residential houses and shoplots, and 179 units of low-cost flats.

It was completed at end-2003, and generated sales of RM65mil.

Meanwhile, in the heart of Seremban town, Tempo Properties recently completed the Medan Suria commercial development which consists of 34 units of three and four storey shop offices that generated RM27.5mil in sales revenue.

“With Medan Suria, we became the first developer in Seremban that does not have a back lane for our shops.”

“It took a lot of convincing to get approval from the authorities. Usually, shops have a back lane for rubbish collection. Our reasoning was - in shopping centres, you have food and beverage outlets without any issue. So, why do you need to have a back lane for shops? The project was well taken up, and the authorities were happy with the design.”

It should also be noted that The Atmosphere is adjacent to the 60-acre Taman Prima Tropika residential development, which was Tempo Properties' first foray in Selangor.

Khoo says 470 units of double-storey terrace houses and two-and-a-half storey terrace houses with a GDV of RM180mil have been built in Taman Prima Tropika.

These were launched from 2004 onwards at prices ranging from RM229,000 to RM379,000.

There are 4 ha left for development in Taman Prima Tropika.

Khoo says Eksons Corp and Tempo Properties have another joint venture company, namely Oval Rock Sdn Bhd for property acquisition and development.

Oval Rock is also 60% owned by Eksons Corp, with the balance held by Tempo Properties.

In January this year, Eksons Corp told Bursa Malaysia that Oval Rock had entered into an agreement with Azam Hartamas Sdn Bhd to acquire 22.7ha of leasehold land at Jalan Gombak, Setapak in Selangor for RM17.1mil.

“We might start a mixed development in Gombak in the third quarter of next year. We are also in discussions with a land owner in Cheras for eight acres,” says Khoo.

By The Star

State aims to revive abandoned low-cost project in Kg Sungai Yu

It May be an end to a long wait for buyers of a low-cost housing project in Taman Sungai Yu Indah, Kampung Sungai Yu, Tanjong Karang, as the project will be revived and expected to be completed in March 2014.

State Housing, Building Development and Squatters Committee chairman Iskandar Abdul Samad said there were around 300 units of low-cost houses.

“It was a joint venture between Permodalan Negeri Selangor Bhd (PNSB) and a private company.

“I have received many complaints from buyers. They have to pay their loans to the bank and rent a house while waiting for the project to be completed and it is a burden to them,” he said.

Iskandar was responding to a question by Sulaiman Abdul Razak (BN - Permatang) who asked for the latest updates of the progress and when could the buyers move in.

Iskandar added that he had raised the issue several times at the state assembly meetings.

“I was told by the Kuala Selangor District Council that the project was to be revived and completed by 2010. But till now, it is still an abandoned project,” he said.

Iskandar said that one of the ways to revive the project was to convert it partially to medium-cost houses.

“One of the reasons that the project was abandoned is because the developers did not have the approval from the Selangor Land and Mineral Department,” he said.

Sulaiman said this was not a valid reason as the department was under the state government.

“How can it be converted to medium-cost houses when the structures have been built?” he asked.

Islander clarified that only some, of the structures were built, hence the remaining ones will be converted to medium-cost houses.

“It is up to PNSB to decide how many will be converted,” he said.

Lee Kim Sin (PR-Kajang) asked what action would be taken against developers that fail to deliver on time.

Iskandar replied that directors of those companies would be black-listed.

“It is insufficient to just blacklist the companies as each project is undertaken by different companies.

“Even then, some people use proxies and register the company under their spouse’s name,” he said.

By The Star

F&N plans RM1.6b mixed project in PJ

The seven-year project is part of the company's effort to unlock existing land value, which will start in the second half of next year

KUALA LUMPUR: Fraser & Neave Holdings Bhd (F&N) plans to undertake a mixed development project with a gross development value of RM1.6 billion in Petaling Jaya, Selangor, its chief executive officer Datuk Ng Jui Sia says.

The seven-year project is part of the company's effort to unlock existing land value, which will start in the second half of next year, he said at an analyst and media briefing on F&N's results for fiscal year ended September 30 2012 here yesterday.

"The first phase of the project is still at the application stage and will cost RM500 million for the construction of apartment units," Ng said.

F&N posted revenue of RM3.24 billion in its 2012 financial year, a 17 per cent drop from the number recorded in the corresponding year.

The lower revenue was mainly attributed to the cessation of the Coca-Cola business, flood disruption in Thailand and absence of property sales.

Ng said F&N will launch the new 100Plus Edge in the next two weeks and dairy products next year to maintain the growth momentum of the segment.

By Business Times

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

MK Land to launch luxury hilltop projects in prime sites

KUALA LUMPUR: MK Land Holdings Bhd is upbeat on the real estate market and is planning to launch exclusive hilltop developments and commercial projects in prime locations to meet demand, its key official said.

According to group chief executive officer Lau Shu Chuan, the hilltop developments will feature luxury bungalows and town villas.

MK Land currently has nine projects in Selangor, Perak and Kedah.

Its flagship project is Bandar Damansara Perdana, a 303.5ha township development in Petaling Jaya, comprising landed commercial and residential properties.

The Damansara Perdana project is expected to take another 10 years to be completed and is destined to be a premier centre for business and living in Petaling Jaya.

Lau said Damansara Perdana is currently one of the biggest developments in Petaling Jaya, with sales of RM2.82 billion derived from the launch of condominiums, high-end apartments, a range of commercial buildings and semi-detached bungalows.

MK Land is planning to launch new phases at Damansara Perdana, Lau said after handing over keys to its buyers for its The Rafflesia @ Park project last week.

The new phases include The Rafflesia @ Hills and The Rafflesia @ Peak, featuring semi-detached bungalows, he added.

The Rafflesia @ Park, meanwhile, is a residential project with prices ranging from RM2.6 million. Lau said the development is expected to be completed by June 2014.

MK Land is offering a five per cent discount to buyers, with no legal fees on SPA and loan documentation.

By Business Times

MKH to gain from MRT project as its property developments are close to the rail line

Mass appeal: Chen posing with a model of the company’s property development project in Kajang.

KAJANG: MKH Bhd (formerly Metro Kajang Holdings Bhd) will derive considerable leverage from the mass rapid transit (MRT) line which runs close to its property developments and the two MRT stations that will be coming up here.

The MRT project aside, group managing director Datuk Eddy Chen Lok Loi said the company was also seeing improvement in its financial figures as a result of its rebranding exercise undertaken a few years ago.

“The quantum leap is waiting to happen for MKH given our strategic landbank of 500 acres to 600 acres in Kajang and Semenyih, excluding the 550 acres turnkey project in Puncak Alam, Selangor,” Chen told StarBiz.

The company is planning to launch properties with an estimated gross development value of more than RM5bil over the next seven years in Kajang and Semenyih, including its Puncak Alam RM135mil turnkey project from Puncak Alam Resources Sdn Bhd.

Chen said:“We are targeting to launch our Puncak Alam's mixed development which will include affordable housing by year-end or early next year.

“The year 2017 will be significant as our Puncak Alam project will be completed and the MRT line in Kajang will be up and running thus enhancing the value of our residential and commercial developments.

“At the same time, our plantation will attainfull maturity with expected yields of between 28 and 30 tonnes per ha per year,” he pointed out.

MKH, which used to derive its revenue from property development and investment, has added oil palm plantation to its current core business. The plantation division will start to contribute positively from 2013 onwards.

“All these years, we wanted to go into the plantation sector to balance the ups and downs characterised by the property development market,” said Chen. It has a total of 15,000 ha planted as at June 2012. Harvesting area as at June this year was about 7,740ha .

Its plam oil mil commenced crude palm oil production at a rate of 60 tonnes per hour and this can be upgraded to 90 tonnes in time to come, he said.

He said the company's earnings momentum was also gathering pace, boosted by higher property development activities which saw its third quarter revenue for the 2012 financial year reaching RM376mil, or a 73% increase compared to the same period a year ago. Property development saw an increase to RM274.1mil from RM118.7mil for the nine-month period a year ago, representing an increase of 130% year-on-year.

The key contributing projects are Hill Park Homes, Pelangi Semenyih 2, its Kajang 2 township developments and the Saveille@Melawati condominium.

Its property investment division, with a value of RM216mil, contributed RM22mil revenue for the third quarter under review, reflecting a marginal increase of 2.8% compared to the same period a year ago.

“This division is providing a steady income, contributing between 12% and 13% to our group profit,” said Chen.

MKH's third quarter net profit is expected to reach RM47mil compared to RM21mil for the same period last year, representing an increase of 124%.

Property development and construction division contributed the largest segmental portion of the profit for the three quarters, at RM66mil, compared to RM12mil for the same period a year ago, reflecting an increase of 447.5% increase.

“We saw a four-fold increase profit from property development and higher average rentals and lower operating costs,” said Chen.

Despite competition heating up with the entrance of new and bigger players in Kajang and Semenyih like SP Setia Bhd, Mah Sing Group Bhd and Sunway group, Chen said MKH's cutting edge would be its land cost, which was considerably lower than its competitors and its reputation on a home turf.

By The Star

Sunway on track for RM1.3bil sales

Artist impression of the Sunway Wellesley Phase 1, which consists of 31 units of three-storey shop offices.

SUNWAY Bhd's property development division is on track to achieve its targeted sales of RM1.3bil this year.

The property development and construction group has done RM1bil in property sales to date, says managing director of property development division (Malaysia) Ho Hon Sang.

The major drivers of Sunway's property sales this year include new phases at Sunway South Quay in Bandar Sunway, and Sunway Velocity in Kuala Lumpur.

Ho: ‘Diversification means mitigated impact and warranted performance.’

Ho points out that the group's recent commercial property offerings Sunway Geo @ Sunway South Quay, Sunway Velocity's Phase 3C1 and Sunway Wellesley Phase 1 in Penang had recorded take-up rates of more than 80% during previews.

The gross development value (GDV) of these projects' phases is RM700mil.

“Besides the strategic locations, these developments are well-planned, with good facilities, infrastructure, security features and incorporate great concepts. They have great potential for excellent capital appreciation,” says Ho.

Ho says the recent preview of Sunway Geo's 31 units of retail shops and 220 units of flexi suites, priced at RM7mil and RM400,000 onwards per unit respectively, has received overwhelming response. “The shops recorded take-ups of more than 80%.”

The retail shops are sized at 4,975 sq ft onwards while the flexi suites are sized at 462 sq ft onwards. They have a combined GDV of RM400mil.

Sunway Geo will benefit from the proposed elevated Bus Rapid Transit-Sunway Line.

Sunway Geo is a 23.4-acre mixed development consisting of retail shops, flexi and office suites, serviced apartments and condominiums. It is located next to the award-winning Sunway Resort City, which was recently certified as Malaysia's first green township by the Green Building Index.

Sunway Resort City is home to 200,000 residents and 33,000 students. It welcomes 36 million visitors yearly.

Sunway Geo is an enhanced version of the group's successful retail concept at Sunway Giza and Sunway Nexis located in Dataran Sunway (Kota Damansara), which featured a covered central boulevard and vibrant alfresco food and beverage dining concept.

Ho says the success of Sunway Geo was due to its innovative retail concept, accessibility and connectivity.

It also enjoys a large catchment pool due to its proximity to Sunway Resort City with amenities such as Sunway University, Monash University, Sunway International School, Sunway Medical Centre, Sunway Pyramid, Sunway Lagoon and Sunway Resort Hotel and Spa.

“Access routes are available from Sunway South Quay to Sunway Resort City amenities. These are via free shuttle-bus service, pedestrian-friendly walkways and elevated canopy walk.”

Sunway Geo is also expected to benefit from the proposed elevated Bus Rapid Transit (BRT) Sunway Line that will run through the township and connect to Setia Jaya KTM Komuter station and an upcoming light rail transit (LRT) station at USJ, Subang Jaya.

Meanwhile, strong sales were also seen recently for Sunway Velocity's Phase 3C1, which consists of 276 designer offices and 12 retail shops priced from RM537,000 and RM3mil respectively.

The retail shops are sized from 2,244 to 4,268 sq ft while the office units are sized from 678 to 1,297 sq ft. They have a combined GDV of RM251mil.

Sunway Velocity is a freehold 23-acre integrated development that is located 3.8km from Kuala Lumpur City Centre. It will feature an integration of five elements retail, office, residence, boulevard and garden.

Sunway Velocity is also planned with a one-million-sq-ft lifestyle shopping mall that will be managed by the group. The development is bordering Jalan Peel, Jalan Cheras and Jalan Shelly, and is reachable via Jalan Tun Razak, Jalan Loke Yew and Jalan Pudu.

It will benefit from two upcoming MyRapid Transit (Cochrane and Maluri) and two existing LRT stations (Maluri and Chan Sow Lin).

Ho also says there was strong response to Sunway Wellesley Phase 1, which consists of 31 units of three-storey shop offices priced from RM972,000.

The 60-acre Sunway Wellesley is surrounded by the Jit Sin Independent High School, AEON Seberang Prai City shopping centre, KPJ Penang Specialist Hospital and Bukit Mertajam High School.

It enjoys accessibility to North-South Expressway, Butterworth-Kulim Expressway and the Penang Bridge and is located within half a kilometre from Bukit Mertajam town centre.

Sunway has undeveloped land bank of 2,780 acres, with a possible GDV of RM32bil. About 93% of the group's undeveloped land bank is in Malaysia (mainly in the Klang Valley, Ipoh and Johor), with a GDV of RM24.5bil. The balance is in Singapore (one acre with GDV of RM95mil), China (95 acres with GDV of RM5.4bil) and other countries in the Asia-Pacific region (103 acres with GDV of RM1.3bil).

The group's launch plans in the Klang Valley in the final quarter of this year include townhouses in Sunway Montana (phase two) at Desa Melawati in Kuala Lumpur, cluster homes in Sunway Alam Suria (phase 2C1) in Shah Alam and three-storey park residences in Sunway Eastwood (phase two) in Puchong.

In Penang, it plans to launch three-storey terrace homes in Sunway Cassia (phase two). Meanwhile, in Singapore, the group has been involved in residential developments with Hoi Hup Realty Pte Ltd since 2007.

Sunway's ongoing projects in Singapore are Vacanza @ East (high-rise development with a GDV of RM1.23 bil), The Miltonia Residences (low-rise development with a GDV of RM952.5mil), Arc @ Tampines (high-rise executive condominiums with a GDV of RM1.17bil), Lake Vista @ Yuan Ching (high-rise development with a GDV of RM915mil) and Sea Esta, Pasir Ris (condominiums with a GDV of RM897.5mil).

The projects have a take-up rate of 92% to 100%, except for Lake Vista @ Yuan Ching which has a take-up of 71%. They are expected to be completed from end-2013 till 2016.

In China, Sunway is presently involved in joint-venture property developments in Jiangyin City (in Jiangsu Province) and the Sino-Singapore Tianjin Eco City.

In Jiangyin City, the group, via a joint venture with Shanghai GuangHao Real Estate Development Co Ltd, is developing a 1,200-unit condominium project with a GDV of RM466mil. It is Sunway's maiden project in China and has achieved a take-up rate of 80%.

In the 7,500-acre Sino-Singapore Tianjin Eco City, the group is developing a 98-acre site which has a GDV of RM5.3bil over the next five to seven years. Sunway has plans for this project to be launched in 2013.

Ho is confident about Sunway continuing to enjoy strong property sales despite talk by industry researchers and analysts about a perceived slowdown in transactional activity within the luxury residential market, due to tougher lending guidelines imposed this year.

He points out that Sunway has a diversified portfolio of properties in different price categories as well as different geographies, catering to various target markets.

“Diversification means mitigated impact and warranted performance. We maintain that strategic properties, which have great value, will always be in demand.”

Ho says Sunway's properties come with well-planned facilities and infrastructure, comprehensive security features, and are strategically located in prime locations.

“These are properties that have excellent potential for capital appreciation and most of our customers, especially the repeat clientele, see the value of these properties.”

He says that in the near future, Sunway will launch products, especially landed units, priced below RM1.5mil. “As for the high-rise segment, we have products worth about RM350,000 and above.”

By The Star

PKNS to build 12,242 affordable houses

The Selangor State Development Corporation (PKNS) will be developing 12,242 units of affordable houses soon throughout Selangor with a new concept, KASIH PKNS.

PKNS will be spending RM1.1 billion in the form of subsidy to build these homes under the concept, KASIH, which carries the meaning "a peaceful, comfortable, beautiful and harmonious life" and will stress on a holistic environment for the householders.

In a statement here today, the General Manager of PKNS, Othman Omar, said the affordable homes will be priced below RM150,000 per unit.

Also within the concept, there are plans to build tuition centres, community centres and other public facilities in the area.

Apart from that, the statement said there will be also special facilities built for physically handicapped people while senior citizens would be provided ground floor units with special areas allocated for them to have recreational activities.

"PKNS is committed to build 12,242 units of these affordable homes within five years with the locations to be in Bandar Baru Bangi, Antara Gapi, Kota Puteri, Gombak, Seksyen U12, Taman Sains Selangor II and Bandar Baru Sultan Suleiman," said Othman.

The units will be priced from RM85,000 to RM150,000. PKNS has todate built 124,515 homes including low cost units, medium cost houses and luxury units.

By Bernama

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

I-Berhad signs MoU with Thai retail developer to set up i-City Mall

Expansive: A night view of the Central World Mall Bangkok.

TO GIVE the local media an idea of what the new mall in i-City Cybercentre, Shah Alam may be like, I-Berhad held a media visit to two malls in Bangkok recently.

During the visit, which also saw the signing of Memorandum of Understanding (MoU) between Thailand’s largest retail developer, Central Pattana Public Company Limited (CPN) and I-Berhad’s wholly-owned subsidiary — I-City Properties Sdn Bhd, the media were taken on a tour of the Central World Mall Bangkok and the tastefully refurbished Central Plaza.

With over 550,000sq m of retail space, the Central World Mall which is the largest mall in South-East Asia, has 500 different retails including 35 different fashion brand flagship stores and 36 new brands.

It also houses six flagship stores, over 50 restaurants and a 21-screen cinema with an indoor parking facilities with 7,000 parking bays. The mall is also connected to a five-star hotel, the Centara Grand and the Bangkok Convention Centre and an office tower.

Using creative artwork and sculpture as part of the shopping complex’s interior, shoppers would have a fun experience while the clever zoning system with unique design and ambience makes it easy for them.

Although we had limited time at the huge mall, members of the media had a fun time rushing through the various zones. One needs more than an hour or two even to just skim through the floors.

Otherwise, the eight-floor mall has a tasteful combination of retail outlets and an impressive area for restaurants and food.

A tourist whom I had met at the mall described the place as enormous and said that he had never seen so many eateries in one mall before.

“Food is good and I can just spend the whole time here. There are the massages, all in one place and it’s connected to the hotel via the seventh floor carpark — it’s just a walk over,” said the tourist.

It is a workable concept that has been successful even in the Klang Valley with malls like 1Utama Shopping Centre and the Mid Valley Megamall.

Huge project: Chirathivat (left) pointing out to Lim an interesting feature of Central World Mall.

CPN president and chief executive officer Kobchai Chirathivat said the joint venture was the company’s stepping stone to further expand its business in Malaysia.

He said the Malaysian government’s consistent policies on foreign investments, the country’s gross domestic products (GDP) growth and the per capita income of Malaysians were factors that attracted the company to invest in Malaysia.

“We hope to bring the best experience we have in building and managing malls in Thailand and to hopefully be one of the best retail projects in Malaysia.

“As Asians, we have almost similar lifestyles so it will be very compatible to move across the border.

“We are very proud to be part of the Malaysian economic development,” said Chirathivat, adding that the mall was still in its designing stages and it would consider the demography and needs of the market as part of the design and concept.

Present at the MoU signing were I-Berhad executive chairman Tan Sri Lim Kim Hong, I-Berhad chief executive officer Datuk Eu Hong Chew and Central Group chief executive officer Sudhitham Chirathivat.

The event was witnessed by Selangor Mentri Besar Tan Sri Khalid Ibrahim and Selangor state executive councillor Teresa Kok.

The i-City mall with a space of 1.7 million sq ft is expected to open at the i-City Cybercentre in Shah Alam by the end of 2015. Construction will begin early next year.

The project with a budget of RM500mil, will be located within an 7.3ha plot in i-City and is set to complete the RM5bil Cybercentre’s offering as an international business hub by day and lifestyle haven by night.

By The Star

Rest of Bandar Seri Putra will be ready in next 5 to 7 years

UNITED Malayan Land Bhd (UM Land), a property developer, expects the entire Bandar Seri Putra development to be completed within the next 5-7 years.

The company, which started developing Bandar Seri Putra in 1997, has currently developed about 283.28ha in Bandar Seri Putra, with a gross development value of more than RM1.75 billion.

"We expect the approximately 80.93ha of remaining land in this township to be developed over the next 5-7 years. These developments are expected to generate more than RM700 million in gross development value," said chief executive officer Charlie Chia after the launch of Bandar Seri Putra's new sales gallery on Saturday.

The new sales gallery was officiated by UM Land chairman Tun Musa Hitam.

Located on the ground floor of a three-storey building with a mezzanine floor, the new sales gallery showcases products offered within the township of Bandar Seri Putra, UM Land's flagship township in Selangor.

"This three-storey building packs a simple but yet elegant design. It demonstrates the simplicity and practicality that we have infused in our various developments in Bandar Seri Putra," said Zulkifly Garib, UM Land's director of operations.

Over the next three years, the company plans to develop apartments and bungalows in the township - with the balance of land to be developed into commercial buildings.

"Bandar Seri Putra is strategically located and easily accessible. Located within the Multimedia Super Corridor, it is easily accessible from the Putra Mahkota interchange, along the KL-Seremban highway and adjacent to the township.

"Residents will enjoy fast and easy access to Putrajaya, KLIA, and the nearby education institutions encompassing various universities and colleges such as Universiti Putra Malaysia, Universiti Kebangsaan Malaysia and Kolej Universiti Islam Antarabangsa Selangor," Zulkifly added.

By Business Times

I-Bhd eyes developing a mall in i-City

BANGKOK: I-Bhd, the master developer of i-City, plans to seal a definitive joint development agreement with Thailand's retail developer, Central Pattana Public Company Ltd (CPN), within two months to develop a mall within its flagship i-City Cybercentre in Shah Alam, Selangor.

Chief Executive Officer (CEO) Datuk Eu Hong Chew said the mall, at a gross development cost of RM500 million and spans 1.7 million sq ft, is slated to start its physical construction works early next year and complete by end-2015.

He told the media after the signing ceremony for the memorandum of understanding agreement between I-Bhd's unit, I-City Properties Sdn Bhd and CPN here yesterday for the purpose of working towards forming a joint venture through a special purpose vehicle (SPV) to develop the mall.

"The mall will be developed through the SPV, in which I-Bhd holds 40 per cent stake while the balance of 60 per cent will owned by CPN," he said.

He stated that CPN was chosen for the tie-up due to its expertise and experience as the group is now operating 20 malls in Thailand including Central World, which is reputedly the largest mall in Southeast Asia at 5.9 million sq ft.

"We are proud that CPN has chosen i-City to be its first foreign joint-venture in mall development," he said, adding that CPN is one of the foreign companies that has a joint venture with them to develop the urban cybercentre township.

He said the company is currently looking for a partner to develop a data centre at i-City.

Elaborating on the mall, Eu said it would be located within a 7.27-hectare plot in i-City and would complete the RM5 billion Cybercentre's offering as an international business by day and lifestyle haven by night.

"Currently, we have already invested about RM250 million in the i-City Cybercentre project, " he added.

Besides the mall, I-Bhd has also developed other properties such as a hotel, office tower, serviced apartments, and small office home office including a water theme park which will open in November this year.

Meanwhile, CPN CEO Kobchai Chirathivat said the company is very keen to establish its name in Malaysia as the country offers huge opportunities for foreign companies to invest.

"We see Malaysia as the best place to start our business outside Thailand as the country provides consistent foreign investment policy. Also, Malaysia is at the forefront of developing countries among the other Asean countries " he said.

He added Malaysia is a good country to invest in as its average capital income is six per cent higher than Thailand, while its purchasing power is two times higher than its northern neighbour.

By Bernama

City within a city

Techno-city: Eu showing how i-City will look like on completion of the projects

I-BHD founder and executive chairman Tan Sri Lim Kim Hong has been in business for a great many years. Yet, he never fails to light up at the mention of his pride and joy the ambitious, steadily forming township of i-City.

With the exuberance of a young man, Lim, 62, is likely to take you by the hand and break into a short sprint as he points out upcoming attractions at his RM5bil, 72-acre development in Shah Alam, which was exactly what happened when StarBizWeek paid a visit there this week.

Seven years hence, I-Bhd's flagship project is set to harvest the first fruits of its labour.

I-City is currently best known for the rows upon rows of LED-lit trees that make a familiar backdrop to weekend family jaunts. The owners of the project believe this is the year it begins the journey to becoming a serious player in property development.

When finished, i-City will be many things to many people theme park, mall, hotel, residence, office and concert venue.

“We have over the past few years been working behind the scene to get all the approvals and infrastructure in place. We have that today, and moving forward we are going to reap the efforts of our investments,” group chief executive officer Datuk Eu Hong Chew asserts.

The story of i-City stretches as far back as 1993, when Lim bought a parcel of land in Section 7 of the then sleepy Shah Alam at RM4 per sq ft.

The freehold development is the brainchild of Lim, who has throughout his life been a trailblazer on many fronts despite adverse circumstances.

The youngest in a family of 10 children, he dropped out of school after standard six and worked in a furniture-making shop in his hometown of Muar, Johor, as an apprentice.

Lim later struck out on his own as a carpenter. At 21, he signed up as a mattress dealer with Dunlop and within a short time, he was the biggest dealer in the country. Soon after, Lim started Dreamland, Malaysia's first spring mattress brand, earning him the nickname “mattress king”.

Dreamland was subsequently listed in 1987 and Lim sold the business in 1993 for RM350mil. He invested the money in several regional ventures as well as in the land on which i-City sits.

I-City is the brainchild of Lim

I-Bhd, which is 61.2%-owned by Lim, used to be a white goods maker known as Sanyo Industries Malaysia Bhd before he acquired and renamed it in 1999.

His technology-based township, however, did not take off until 2005, hampered by the onset of the Asian financial crisis.

Today, Lim has the state on his side, so much so that it agreed to build three flyover interchanges that will link i-City to the Federal Highway, making it only the second development to have exclusive access to the bustling expressway after Mid Valley.

Not only that, the Shah Alam City Council has written to the Land Public Transport Commission requesting that one of the stations along the proposed Kelana Jaya-Klang line of the My Rapid Transit service i-City.

With only 20% of the construction in place, large tracts of bare land still dominate the landscape of i-City, although if everything goes on schedule, this will not be the case for much longer.

Day and night

I-Bhd will spend the next 10 years realising the masterplan designed by Jon A. Jerde, whose portfolio includes the ritzy Roppongi Hills neighbourhood in Japan and S P Setia Bhd's KL Eco City.

I-City is billed as an “international business hub by day and lifestyle haven by night”. Lim and his team are working to create an integrated mixed development the likes of which has no comparison in Shah Alam, and which many thought preposterous to do in a place better known for its sedate suburbia and factories than as a thriving nightspot.

A successful urban centre will always have a business as well as entertainment component.

“The perception then was that no one wanted to invest in Shah Alam,” recalls Eu, Lim's loyal aide of 20 years.

Because of this, i-City was a tough sell. Lim, for example, had to contend with an initially miniscule plot ratio of 1:3 and approved built up of five million sq ft, which would not allow the company to maximise its potential.

After much wrangling, Lim got the green light to raise i-City's plot ratio to 1:5, giving it a total gross floor area (GFA) of 13 million sq ft and RM5bil in gross development value (GDV).

I-City was the first and still the only private sector-led MSC status zone in the state.

It also signed a management and development agreement with the Selangor government to make i-City a “technopreneur campus”, which comes with a host of incentives such as a temporary occupation licence for some 30 acres of neighbouring land, 24-hour operation for approved outlets, lower bumiputra sales quota of 30%, and the expanded plot ratio.

“If you look at all the successful urban centres in the world, there is always a business as well as entertainment component. Look at Roppongi or Canary Wharf (in London). When you have both day and night activities, the place becomes vibrant,” Eu explains.

i-Appeal

The quarter ended June 30 marked the first time I-Bhd recognised revenue from the residential portion of i-City in its books. Its turnover in the second quarter improved 63% to RM10.94mil from RM6.71mil in the same period last year, and net profit to RM2.97mil versus a loss of RM129,000, boosted by a three-fold increase in its leisure segment and a one-off gain of RM1.8mil from the divestment of its i-Home trademark.

For the first half of the year, revenue climbed 73.5% to RM19.59mil from RM11.29mil, while net profit stood at RM3.79mil compared to RM294,000 of losses a year earlier.

In the notes accompanying its financial results, the firm said it recorded a profit of RM7.6mil from its leisure operations during the six months to June, which was triple the RM2.2mil achieved in the previous corresponding period due to stronger revenue from its upgraded SnoWalk, more visitors to the LED Lightscapes and new theme park attractions installed in the final quarter of 2011.

Nonetheless, Eu explains that the contribution from its leisure division, which has so far been I-Bhd's main earnings engine, should balance out as the company progressively receives cash from the sales of its residences.

“We have only accounted for less than 5% of our unbilled sales in the second quarter,” he points out.

I-Bhd in May launched 173 units of the West Wing of i-Residence, which has been fully sold. It unveiled last month a further 173 units of the East Wing in addition to 20 villas.

Also sold out were its 220 small office/versatile offices (Sovos), whose completion and handover is expected in two years.

In terms of pricing, Eu says i-Residence has set a new benchmark in the area at RM500 per sq ft.

Capital values in the vicinity, he adds, have appreciated in tandem. “When we were building in 2008, the semi-detached houses behind us were going for RM750,000 and RM300,000 for terrace homes. Now it has doubled to RM1.5mil and RM600,000.

“We have demonstrated that there is demand for high-rise living in Shah Alam, which has historically favoured landed property. When we wanted to do this, people were sceptical. But we have proven that if you have a nice product and environment, high rise is possible.”

Of i-City's total 13 million sq ft, 8 million has been carved out for residential-type dwellings, 2 million for the mall and three hotels, and the rest for offices.

I-Bhd plans to roll out RM500mil worth of projects with one million sq ft of GFA and hit RM500mil in sales per annum.

Eu calls i-City a “dual-track” project as the tourism and property development elements can operate independently of each other.

“Every developer wants a recurring income stream, that's how the theme parks came about,” he elaborates.

“Once everything is done, we will also receive recurring income from the investment properties, namely the mall, hotels and carparks.”

Quantum leap

By the middle of the next decade, after i-City has come to fruition, it is envisaged to have 30,000 knowledge workers, 25,000 residents and 40 million to 50 million visitors from five million now.

And while the small office/home offices (Sohos) and Sovos make up a significant chunk of its residences at 5.2 million sq ft, or 40% of the total built up, Eu does not think there will be a crunch in demand, citing the growing number of technopreneurs who eschew traditional offices.

In the near term, I-Bhd aims to launch 950 units of its RM300mil GDV Sohos in November alongside its Water World@i-City that will feature the country's only tornado ride.

Also in the works are a luxury 43-storey condominium sited on 1.1 acres in Kuala Lumpur's Golden Triangle in Jalan Kia Peng, which is slated to be revealed in the first quarter of next year, and Clarke Quay @i-City, the working title for what will be its riverfront complex inspired by the Singaporean tourist haunt of the same name.

“The authorities here are learning from Singapore and have decided to do away with the cemented banks of Sungai Rasau, which snakes past i-City. The plan is to widen and deepen the river to give it a natural look,” Eu explains.

The river will be the focal point for its leisure district comprising its one million sq ft regional mall, hotels, an amphitheatre and an F&B hub.

For the rest of the year, Eu is confident that the company can maintain its growth momentum.

He expects net profit to be double that of last year in the financial period ended Dec 31, 2012 (FY12) on the back of progressive recognition of unbilled sales from its apartments and better ticket sales from its rides and attractions with the looming year-end holidays.

In a May report, Kenanga Research estimates that I-Bhd could see solid earnings growth in FY12 and FY13 of over 100% to RM11.4mil and RM24.3mil respectively.

“For the past five years, the group has maintained its net cash position with a zero gearing balance sheet,” adds the research house, which has a target price of RM1.51 for the stock.

On dividends, Eu shares that there is potential for higher payouts in the future. It has been returning one sen to shareholders over the past two years for a yield of 1% to 3%.

“Last time we were thinking about how to settle the problems. Now we will settle shareholders,” Lim chips in.

For him, this is more than a business investment. “It is not only about returns. Without love, this will not be successful. Without love, we would have surrendered,” he says simply.

“The challenge for us now,” Eu sums it up, “is to continue to increase the GDV of i-City. We have 10 years left under the current plan. Our job is not to complete it, but to enhance it further so we will have many more years to go.”

By The Star

A place to have fun and live in

Snowman models in Snowalk at i-City.

I-BHD's City of Digital Lights, which opened its doors in 2009, has never failed to attract visitors. On average, it receives 90,000 visitors a week or about five million visitors per annum. Group executive chairman Tan Sri Lim Kim Hong recalls that the traffic jam at the entrance to i-City that stretched some 10km when it was first opened and parking was free.

Subsequently, I-Bhd charged RM3 per entry into the car park and the jam had eased to about 5km and now it costs RM10 per entry. He says the traffic buildup is now mainly during weekends, public and school holidays.

“I-City has become a landmark in Shah Alam. We're now a crowd puller,” Lim says. The soon-to-be developed mega shopping mall known as CityMall and Water World@i-City, which is opening its door in November, are set to attract more visitors.

I-Bhd will be announcing its joint venture with a shopping mall manager in two weeks which will help manage its CityMall. The mall will be built on 14 acres in i-City.

“We will make the announcement in two week's time. It will be an agreement with a mall operator,” group chief executive officer Datuk Eu Hong Chew tells StarBizWeek.

He says the “regional mall” with an estimated gross development value (GDV) of RM500mil, is scheduled to open in 2015 and investors are said to be conducting their due diligence exercise at the moment.

Last year, I-Bhd entered into a 30:70 joint venture with Everbright International China to co-develop 30 acres in i-City. The development will be done in two phases. Phase one involves 14 acres with a GDV of RM1.5bil and will comprise a giant shopping mall and 2 million sq ft of mixed residential, Multimedia Super Corridor (MSC) offices and educational institute.

The second phase has a GDV of RM2bil involving 16 acres.

“Everbright will be the contractor and builder of the mall. They will fund the construction and act as a financier cum contractor,” Eu says, adding that CityMall will have a lettable area of one million sq ft.

Eu says i-City will introduce some food and beverage outlets fronting Sungai Rasau as the Selangor government plans to upgrade the river. Once completed, there will be a 1km river frontage beside i-City.

Meanwhile, a six-acre Water World@i-City will premier to the public in November just ahead of the year-end school holidays. The water park will be a new boost to I-Bhd's leisure business, which is already a major cash generator for the company.

Lim says a tornado ride, the first of its kind in South-East Asia, will be a major attraction for the water park.

“Many do not realise we are not just a property developer but one of the few listed companies who have gone into the leisure business. We have invested RM30mil in leisure and theme park attractions so far.

“This year we are investing RM25mil in the Water World. Our plan is to invest RM100mil in the theme park in three to four years,” Eu says.

While I-Bhd's tourism element may not be huge, it is already getting a decent number of visitors to its theme park, various rides and attractions. Currently, Snowalk and the digital lights are the main attractions which draw people to i-City.

“Our track record so far is we have managed RM1 turnover for each RM1 of investment. We invested RM30mil this year in the theme park and expect RM30mil revenue. This is based on actual historical performance. We did not plan for it this way.

“For every RM1 of turnover we receive 30%-35% in terms of profit. We think we should be able to continue this. We reckon we should at least get RM100mil from our theme park yearly after it is completed,” Eu says.

I-Bhd embarked on the leisure business several years ago to provide the company with a recurring income stream once the development of i-City is completed in about 10 years.

Since the launch of City of Digital Lights, revenue from the leisure segment has grown from RM2.8mil in 2010 to RM17mil last year.

As at June 30, I-Bhd's efforts at enhancing its tourist attractions at i-City are paying off as profits have more than tripled year-on-year to RM7.61mil from RM2.24mil previously.

“When everything is complete, recurring income will come from the investment properties namely the mall, hotels and carparks. The theme park is separate as it is not under property development,” Eu says.

As it realises its need for repeat visitors, Eu says, I-Bhd will add new attractions every year to draw in the numbers. Last December, it brought in seven theme park rides and so far this year it has launched the 10,000 sq ft children's gym.

“At the moment we are still about 90% night in terms of visitor arrivals. We hope that by next year when the Water World is open it will be two thirds night visit and one third day visit,” he says.

Acknowledging that it has not done much marketing, Eu says it will be conducting more marketing once its Water World is open.

“A lot of the crowd comes by word of mouth. But once we finish the water park, there will be a critical mass for us to promote to. A lot of shopping malls would like to have an entertainment component. The difference for us is that by the time we open our mall, we already have a proven theme park,” Eu says.

Moving on, three hotels from luxury four star to boutique hotels are in the pipeline as long-term investment.

“At the moment there are three planned four-star, three-star and boutique hotels. The latter two we may manage ourselves although we haven't finalised this. However, for the high end one, we will probably get an international hotel operator,” Eu says.

By The Star

Developers can now submit entries for Kwasa Damansara project

PETALING JAYA: Developers can now submit entries for a pre-qualification process to be in the running for Kwasa Land Sdn Bhd's proposed Kwasa Damansara development which sits on 2,330 acres of land in Sg Buloh.

As the master developer, Employees Provident Fund's wholly-owned subsidiary Kwasa Land will conduct a pre-qualification exercise to get participants with required track record and expertise to undertake parcels of mixed development projects.

In a statement, Kwasa Land managing director Mohd Lotfy Mohd Noh said: “The integrated development will comply with all the requisites of a master layout plan that is to be approved by the Selangor State planning authorities. The development will be divided into parcels and developed in phases according to Kwasa Land's master timeline.”

Participants will be assessed based on their paid-up share capital or shareholder's fund, pre-tax profit for the last three consecutive years, gross development value, net gearing ratio and recognition.

The exercise is classified into three categories namely: Tier 1 with a paid up share capital or shareholders' fund of at least RM1bil; Tier 2 with a paid up capital or shareholders' fund of at least RM300mil; and Tier 3 comprising bumiputera developers with a paid-up capital or shareholders fund of RM1mil and above. Bumiputera developers may also participate in either Tier 1 or Tier 2 categories subject to their qualification.

The township will serve a target population of 150,000 when ready.

Prior to the opening, Dijaya Corp Bhd has expressed interest in this project. According to a report, developers that match Kwasa Land's criteria include Malaysian Resources Corp Bhd, IJM Corp Bhd, Sime Darby Bhd and SP Setia Bhd.

Companies which are interested can visit the Kwasa Land corporate website at www.kwasaland.com.my to download the form for the pre-qualification exercise. The closing date for all submissions is noon, Sept 26, 2012.

By The Star

BRDB unit inks JV deal for RM600mil Sg Long project

KUALA LUMPUR: Bandar Raya Developments Bhd’s (BRDB) wholly-owned subsidiary, Raintree Forest Sdn Bhd has entered into a joint-venture (JV) agreement with Garuda Mega Sdn Bhd for the proposed residential development on Sungai Long land on a JV basis.

In a filing with Bursa Malaysia, BRDB said the estimated gross development value of the proposed residential development on Sungai Long land, measuring 25.97 ha, was RM600mil.

Phase one of the proposed development was targeted to be launched in the second quarter of 2014, it said. “The proposed JV represents an opportunity for BRDB to participate in viable development projects without having to bear the substantial upfront costs of acquiring land and to replenish its development landbank,” BRDB said.

The company also said the proposed JV would contribute positively to its future earnings.

The company intends to fund the proposed JV and the proposed development costs through internal generated funds and/or bank borrowings.

By Bernama

BRDB in JV residential project, GDV of RM600m

KUALA LUMPUR: Bandar Raya Developments Bhd (BRDB) is teaming up with landowner Garuda Mega Sdn Bhd to undertake a residential development project in Sungai Long, Selangor.

BRDB said on Wednesday its unit Raintree Forest Sdn Bhd had inked a JV agreement with Garuda Mega for the project with a gross development value of RM600mil.

The agreement is to build bungalows, semi detached houses and apartments on Garuda Mega's land, measuring 25.97ha. Phase one is targeted to be launched in the second quarter of 2014.

The landowner's entitlement would be 23% of the net development value and it could opt for either cash or units or both.

The directors of Garuda are Datuk Chee Hong Leong and Chee Chik Eng.

By The Star

EPF unit Kwasa Land invites partners to develop RRI land

KUALA LUMPUR: The Employees Provident Fund unit Kwasa Land Sdn Bhd will invite partners to develop the Rubber Research Institute (RRI) land in Sungai Buloh into a township.

Kwasa Land said on Wednesday, as the master developer, it would undertake the first step by conducting a pre-qualification exercise to get the right partners to undertake the Kwasa Damansara township.

The township project will cover 2,330 acres (943 ha) of prime land and Kwasa Land's emphasis is to ensure it obtains the "right developers with the required track record and expertise to undertake its massive parcels of mixed development projects".

Of the total land area of 3,155 acres, it said 2,330 acres was acquired by Kwasa Land for the proposed Kwasa Damansara development. Separately, the government has acquired 290 acres for the MRT while the Rubber Research Institute has retained 535 acres.

The township is a mix of residential, commercial, recreational, institutional and educational facilities which when ready, will serve a target population of 150,000.

The designated township is surrounded by a huge and matured Damansara suburb; served by no less than five traversing highways, and the setting up of two MRT stations that will make public transportation a breeze for those seeking accessibility and connectivity.

Of the total land area of 3,155 acres, 2,330 acres is acquired by Kwasa Land for the proposed Kwasa Damansara development. Separately, the government has acquired 290 acres for the MRT while the Rubber Research Institute has retained 535 acres.

Developers are invited to visit the Kwasa Land corporate website at www.kwasaland.com.my to download the form for the Pre-Qualification exercise. The closing date for all submissions is noon, Sept 26, 2012.

By The Star

Magna Prima plans RM1b jobs

Magna Prima Bhd, a niche property developer, has lined up several new launches in Kuala Lumpur and Selangor with a projected gross development value (GDV) of more than RM1 billion.

First out of the blocks will be Phase II of a residential tower at the Boulevard Business Park in Jalan Kuching, Kuala Lumpur.

Magna Prima chief executive officer Datuk Rahadian Mahmud Mohammad Khalil said the project will see the construction of 330 units of serviced apartments with a GDV of RM220 million.

"We have not finalised the actual name (for the project). We are just calling it Boulevard Business Park at the moment. We may change the name at a latter stage," he told Business Times.

Rahadian said the company plans to hold a soft-launch for the project soon and, similar to its previous launches, the developer is confident of securing a high take-up rate for the units.

"We have yet to launch the project but a lot of people have already registered their interests, a lot more than the number of units that we offer. So we can tell there will be a high take-up rate," he said.

The units are priced at between RM414,200 and RM832,000 each.
Rahadian said the company is also looking to develop a mixed residential and commercial project on its recently acquired 8ha plot in Shah Alam.

"We will be submitting all the plans for approval this year and hopefully, we can launch the project in the first quarter of next year," he said.

Early in June, Magna Prima announced that its unit, Magna Ecocity Sdn Bhd, was acquiring the 8ha for RM100 million.

The company said the GDV of the proposed development was estimated at RM832.67 million and the total development cost was estimated to be RM624.83 million with an expected gross profit of RM207.84 million.

Apart from this, Rahadian said the company is also planning the development of two blocks of residential apartments in Shah Alam.

"This project, with a projected GDV of RM240 million, is slated to be launched in the third quarter of next year, probably in September," he said.

By Business Times

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