PETALING JAYA: In a bid to position itself firmly in the niche-property segment, Plenitude
Bhd is set to launch two high-end bungalow projects in the Klang Valley and a semideecum-
condominium project in Penang early next year.
The projects in the Klang Valley will comprise 16 units of luxury bungalows in Damansara Heights known as D’Batai, and four units of exclusive bungalows in Bukit Tunku known as Liku.
Plenitude executive chairman Chua Elsie (pix) told theSun after the company’s AGM yesterday, that prices for D’Batai will start at RM5 million while the Liku units will cost RM12 million onwards each.
“These are niche properties and appeal to only a select few who appreciate luxury and are willing to pay for it,” said Chua, adding that she sees good response for such niche products in prime locations.
The D’Batai units, offering built-ups of 6,000 sq ft, will have a gross development value (GDV) of RM90 million. On the other hand, the Liku bungalows, with a GDV of RM40 million, will boast spacious built-ups of 20,000 sq ft. “Our bungalows will incorporate high-end finishing with modern designs and unrivaled quality,” said Chua.
On the developer’s semi detached-cum-condo project in Penang, Chua said it would be known as Ferringhi Heights in the popular beach town of Batu Ferringhi. The developer is planning 44 units of semidees and 112 condo units with a total GDV of RM130 million.
The semidees have an expected price of between RM1.8 and RM2.2 million, while the condos are expected to cost RM 1.2 million. The semidees will have built-ups of 3,500 sq ft in three layouts, while the condos will be 1,600 sq ft in size in two layouts.
Plenitude’s other notable developments include Changkat Kiara in KL, Taman Desa Tebrau in Johor, Taman Putra Prima in Puchong, and Bandar Perdana in Sungai Petani, Kedah.
By theSun (By Tim Leonard)
Tuesday, November 20, 2007
Plenitude expects boost from growth corridors
Property developer Plenitude Bhd said its net profit could rise by a tenth in fiscal 2008, boosted by continuous activity from three growth corridors.
Revenue should increase by about six per cent, a top official said.
For the year to June 30 this year, the group made a net profit of RM56.6 million, an 8.2 per cent rise. Revenue was higher by 7.7 per cent to RM238.2 million.
So far, the group is developing some 768ha in the Northern Corridor Economic Region, Central Region of Klang Valley and the Iskandar Development Region (IDR).
Of this, some 86 per cent will be used to develop mixed-residential areas and the rest for commercial property. In addition, Plenitude has 780ha of undeveloped land.
As at June 30 this year, the company was sitting on an unbilled sales of RM150 million.
About 57.6 per cent comes from the IDR township development and 30.8 per cent from its high-end development in Sri Hartamas.
The Taman Desa Tebrau, within IDR, is Plenitude's flagship project spanning some 387.2ha in land area with a total gross development value of RM1.9 billion. This is expected to sustain the group's growth until 2018.
In July this year, Plenitude sold almost 14.8ha to Permodalan Eramaju Sdn Bhd for RM64.5 million, for the development of the country's second Ikea store located in the Tebrau City.
Plenitude made a net gain of about RM24 million from the sale.
In its research note, OSK Research has recommended that investors buy Plenitude shares. It gave a target price of RM5.
It added that Plenitude is trading at a big discount to its net tangible asset share of RM3.84.
Plenitude closed down two sen from RM2.95 last Friday to RM2.93 yesterday.
By New Straits Times (By Zurinna Raja Adam)
EPU deputy D-G: Urban centres to drive growth
PENANG: The urban areas of Penang, Johor Baru, and Kuala Lumpur will be important drivers of economic growth in the country, said Economic Planning Unit deputy director-general Datuk K. Govindan.
“Besides modern agriculture, a key driver of economic growth, the urban areas would see the development of more financial, medical and logistic projects that would spur the country’s economy.
“These projects would create the need for specialists in different professional fields, which drive the growth of other economic sectors,” he said at the sidelines of the NCER: Seizing The Opportunities symposium.
“We are trying to achieve a 7% (annual) growth for the country’s economy in the near future, as there are some 380,000 youth entering the labour force yearly.
“In 2006, about 260,000 jobs were created, which was not sufficient.
From left: Datuk K. Govindan, Wan Azrain Wan Adnan, Institute of Startegic and International Studies chairman and CEO Datuk Seri Mohamed Jawhar Hassan and NCER Research Centre director Assoc Prof Zulkhairi Md Dahalin
“New urban projects such as the Penang Global City Centre that are now being planned would help accelerate economic growth and create new employment opportunities,” he said.
Govindan said Penang already had the infrastructure for free industrial zones, a public transportation system, and the history.
“All Penang needs now is a little push for it to leapfrog,” he said.
Meanwhile, Sime Darby Bhd manager Wan Azrain Wan Adnan said the Northern Corridor Economic Region (NCER) was implemented to eradicate poverty in the northern region and to raise the standard of living.
“Although there are many other economic corridors, the NCER does not compete with them, as we have different objectives,” he added.
By The Star
NCER hub issue sets off debate at House
The claim that Penang stands to gain positively as the logistics and transportation hub for the Northern Corridor Economic Region (NCER) sparked off a lively debate between Chief Minister Tan Sri Dr Koh Tsu Koon and Phee Boon Poh (DAP – Sungai Puyu).
Dr Koh said many massive infrastructure projects were being undertaken in the state after Penang was designated as the logistics and transportation hub for NCER.
The projects, he said, were either in their implementation or planning stages.
The projects singled out were the North Butterworth Container Terminal (NBCT), the expansion of Penang International Airport, Penang Outer Ring Road (PORR), the second Penang bridge, Penang Monorail, Penang-Butterworth Fast Ferry Service, Penang Central Integrated Transport Hub, Butterworth and International Cruise Centre in Swettenham Pier.
To this, Phee questioned the sincerity of the state government in pushing Penang as the transportation and logistics hub.
“We have heard of Penang being designated as the transportation and logistics hub under the policies of Penang Strategic Development Plan in 1995 and the IMT-GT (Indonesia, Malaysia, Thailand Growth Triangle) in 1990.
“And now Penang is again named as such for the NCER. Can you please tell us the difference between the three?” he asked.
Phee said it only goes to show that the state government did not draw up any concrete plan for the state's development.
By The Star
Make Penang offshore financial hub, Govt urged
Developers: Explore incentives to attract banking institutions
PENANG: The Federal Government should explore transforming Penang into an offshore financial centre as part of the state’s intellectual infrastructure development, said Real Estate and Housing Developers’ Association (Penang) chairman Datuk Jerry Chan Fook Sing.
“Research, medical, and management faculties should be developed to enhance the remodelling of Penang as a high-value finance and education hub.
“There are presently countries such as Hong Kong and Singapore where the business environment is less cost competitive for financial and banking institutions to operate.
Datuk Jerry Chan Fook Sing
“These financial institutions and banks are now looking for suitable commercial hubs to expand.
“The Federal Government should explore the incentives it can offer to attract these banking and financial institutions to Penang,” he said.
Chan had earlier spoken on infrastructure-led expansion of the property market in the NCER: Seizing The Opportunities symposium organised by Abad Naluri Sdn Bhd on Saturday.
“By turning Penang into an offshore financial centre, the Government can also attract a lot of the financial talents who are now overseas to come back.
“The British Virgin Islands, the Cayman Islands and the Bahamas are examples of successful offshore financial centres,” he said.
Chan also said to stimulate economic growth in Penang, the Government should not overlook physical infrastructure projects that had been on the drawing board for a very long time.
These included the proposed ring road from George Town to Batu Ferringhi, the ring road from Butterworth to Bukit Mertajam and Nibong Tebal, the expansion of the Penang airport and renovation of the South Seberang Prai hospital.
On the proposed Penang Global City Centre (PGCC) project, Chan said his presence at the symposium did not signal his unreserved endorsement of the project as he was also a resident of the affected Jesselton neighbourhood.
“There are views and concerns of residents on the impact of the PGCC project that the developer, Abad Naluri, must address,” he said.
By The Star (By David Tan)
State short of schemes for REIT companies
PENANG: Penang is short of high-value property schemes for real estate investment trust (REIT) companies to invest in.
Of the 87 properties held by the 13 REIT companies in the country, only two were in Penang, Regroup Associates Sdn Bhd executive chairman Chris Boyd told StarBiz at the sidelines of the NCER: Seizing The Opportunities symposium.
Chris Boyd
“The Penang Global City Centre (PGCC) project, which has an estimated gross sales value of RM25bil, therefore, provides new investment opportunities for REIT companies to come to Penang,” he said.
He said presently the bulk of Penang’s financial and commercial properties were still located in the heritage districts of George Town.
These areas were very congested, making access inconvenient, he said.
“PGCC provides a suitable site for future and existing commercial and financial properties buildings to be developed and relocated.
“The heritage districts can then be used for the development of heritage and tourism projects. There are many cities in China that have followed this pattern of development,” he said.
On the impact of PGCC on property prices of Penang, Boyd said over the next five years the property prices in the prime locations of the island would eventually hit RM500 per sq ft from the current RM250 per sq ft."
By The Star
Monday, November 19, 2007
Axis REIT seeks to boost coffers
AXIS Real Estate Investment Trust (Axis REIT) will raise more money from shareholders to boost its property portfolio value by two thirds to some RM1 billion by the end of 2008.
The property trust will place out more new Axis REIT units which will essentially lower its gearing, a measure of its borrowings against its total assets.
Hence, Malaysia's first listed REIT will have more room to secure loans for future real estate acquisitions.
"It is not a question of (portfolio) size, it is a question of quality," Axis REIT Managers Bhd executive director Stewart LaBrooy told Business Times in Petaling Jaya recently.
LaBrooy did not specify the number of properties Axis REIT plans to buy or their respective locations.
Although an overseas foray by Axis REIT is also on the cards, it is most likely to involve acquisition of securities in foreign property trusts.
Direct physical property buys abroad are, however, less favoured due to more legal complexities. "There is still a lot more to do in Malaysia," LaBrooy said, without indicating when its initial venture abroad will take place.
Axis REIT's gearing, derived from dividing its borrowings by its total assets, indicates to what extent the property trust relies on loans to grow its business.
Since its listing on Bursa Malaysia's main board in August 2005, Axis REIT has bought 16 local commercial and industrial assets worth an estimated RM600 million to date, said LaBrooy.
It initially had, upon listing, five entities collectively valued at about RM300 million. These include the Menara Axis, and Crystal Plaza, both located beside the Asia Jaya LRT station in Petaling Jaya.
New additions this year include the Giant Hypermarket in Sungai Petani, Kedah, and BMW Asia Technology Centre at Port of Tanjung Pelepas, Johor.
Axis REIT chief financial officer Lim Yoon Peng had said in July that due to its latest property purchases, its gearing was expected to almost double to 42.4 per cent.
The figure was, however, anticipated to drop to 23 per cent due to a planned private placement of 50 million new Axis REIT units, its first new security issue since its flotation.
Malaysia's Securities Commission has capped local REIT's gearing at 50 per cent. This means that property trusts could only borrow up to half of their total assets.
The 50 million new units could potentially raise some RM87 million, assuming they were priced at RM1.74 each, according Axis REIT's filings to the bourse.
Axis REIT will seek unitholders' consent for the exercise on December 7. Proceeds from the sale will be used to reduce debt, and fund future real estate acquisitions.
"Axis REIT is the most aggressive acquirer of assets among Malaysian REITs," research firm BNP Paribas said in a note.
Axis REIT's income before tax in the nine months to September 2007 rose 78 per cent to RM50 million, partly due to an upward revision in the fair value of its properties. Revenue surged 12 per cent to RM33.8 million.
Its securities, which were untraded yesterday, traded at RM1.89 last Friday, a one sen or 0.5 per cent drop from the previous day's closing.
By The EDGE MALAYSIA (By Chong Jin Hun)
New commercial hub on the cards for Sungai Buloh
PETALING JAYA: Dijaya Corp Bhd’s (Dijaya) indirect whollyowned subsidiary, Nadi Jelita
Sdn Bhd (Nadi Jelita), will be jointly developing 20.83 acres of freehold land in Pekan Baru,
Sungai Buloh with Aliran Firasat Sdn Bhd (Aliran).
Acquired by Aliran in 2005, the land currently has a book value of RM65.6 million. Dijaya has a 60% stake in the joint venture development comprising 173 units of 3- and 4-storey shop offices.
Tong: The development will be launched in three phases
According to Tong Kien Onn, managing director of Dijaya, the RM200-million integrated
commercial development would be launched in three phases. The first phase will comprise 72 units, while the second and third phases comprise 64 units and 37 units respectively.
The first phase of the freehold project is targeted for launch within the first quarter of
next year. “Our sales target for the first phase is 60 units (80%) within one month of
launching,” said Tong.
“All units fronting the busy main road of Jalan Sungai Buloh are 4-storey with a standard size of 22ft by 70ft, while the corner units are 4-storey with lot sizes of 35ft by 69ft and 35ft by 70ft. Other units are 3-storey and the standard lot sizes vary from 22ft by 69ft to 22ft by 70ft,” he told theSun. All 4-storey corner units would be provided with lifts. The row facing the main road would most likely be for showrooms and banks while the inner units would be suitable for
businesses such as food and beverage.
Besides shop offices, there would also be a 5 ½-storey multi-level car park building that would
accommodate 1,130 parking bays.
“We have got most of the approvals already, and construction should begin early next year,” said Tong, adding that the indicated selling price would range between RM1.1 million and
RM1.6 million per unit.
“This development is being planned with the purpose of supporting the local business community and to be a leading commercial hub in the heart of Sungai Buloh,” said Tong.
The six-year project is expected to attract investors who recognise the potential of the well-established area, businessmen from the spillover from the adjacent Bandar Baru Sungai Buloh and Bukit Rahman Putra, as well as first time investors who can afford an RM1- million freehold shop office.
According to Tong, a preregistration exercise would be held throughout this month and next month. The second launch of the project can be expected within the first half of 2008.
By theSun (By Yeong Ee-Wah)
Sdn Bhd (Nadi Jelita), will be jointly developing 20.83 acres of freehold land in Pekan Baru,
Sungai Buloh with Aliran Firasat Sdn Bhd (Aliran).
Acquired by Aliran in 2005, the land currently has a book value of RM65.6 million. Dijaya has a 60% stake in the joint venture development comprising 173 units of 3- and 4-storey shop offices.
Tong: The development will be launched in three phases
According to Tong Kien Onn, managing director of Dijaya, the RM200-million integrated
commercial development would be launched in three phases. The first phase will comprise 72 units, while the second and third phases comprise 64 units and 37 units respectively.
The first phase of the freehold project is targeted for launch within the first quarter of
next year. “Our sales target for the first phase is 60 units (80%) within one month of
launching,” said Tong.
“All units fronting the busy main road of Jalan Sungai Buloh are 4-storey with a standard size of 22ft by 70ft, while the corner units are 4-storey with lot sizes of 35ft by 69ft and 35ft by 70ft. Other units are 3-storey and the standard lot sizes vary from 22ft by 69ft to 22ft by 70ft,” he told theSun. All 4-storey corner units would be provided with lifts. The row facing the main road would most likely be for showrooms and banks while the inner units would be suitable for
businesses such as food and beverage.
Besides shop offices, there would also be a 5 ½-storey multi-level car park building that would
accommodate 1,130 parking bays.
“We have got most of the approvals already, and construction should begin early next year,” said Tong, adding that the indicated selling price would range between RM1.1 million and
RM1.6 million per unit.
“This development is being planned with the purpose of supporting the local business community and to be a leading commercial hub in the heart of Sungai Buloh,” said Tong.
The six-year project is expected to attract investors who recognise the potential of the well-established area, businessmen from the spillover from the adjacent Bandar Baru Sungai Buloh and Bukit Rahman Putra, as well as first time investors who can afford an RM1- million freehold shop office.
According to Tong, a preregistration exercise would be held throughout this month and next month. The second launch of the project can be expected within the first half of 2008.
By theSun (By Yeong Ee-Wah)
Borneo Highlands eyes world market
Built on a former timber logging area, the Borneo Highlands Resort is a unique eco-friendly luxury residential development in Southeast Asia that is set to penetrate the international market starting next year.
Standing at 1,000 metres above sea level atop the Penrissen mountain ranges and literally a stone's throw away from the southwest Kalimantan border, about 25 per cent of the total area of 2,097ha of land has been developed so far by promoting the "Back to Nature, Back to Basics" lifestyle.
The resort's chief operating officer Loh Leh Ching said its developer, Borneo Heights Sdn Bhd, will initially target the real estate at regional markets including Singapore, Brunei, Japan, South Korea, Hong Kong and Australia, especially as a second or holiday home.
The resort, which has spent RM120 million on facility upgrading and infrastructure since its inception in 1995, is a joint-venture between Country Heights Holdings Bhd, which holds a 70 per cent stake, and the Sarawak Land Custody and Development Authority (LCDA), the remaining 30 per cent.
"At present, 149 of the maximum projected 500 bungalow lots are already developed, including one lot purchased by a lawyer from the UK and another by a Singaporean businessman, while we have also received enquries from Japan and Taiwan," Loh said during a recent tour of the resort, about an hour's journey by road from in Kuching.
With the property prices expected to increase to RM700 per sq ft (psf) in the next five years from RM72 psf at present, he said the company will also look at European, US, Russian and the Middle East markets.
On investment returns, Loh said the property prices had risen from a mimimum RM38 psf to RM72 psf, an increase of about 90 per cent in the past two years.
He is confident that potential buyers will find Borneo Highlands, dubbed the Rainforest Haven Properties, an attractive long-term investment because of the 198-year land leasehold period compared to the normal period of less than 100 years in and around Kuching city.
Currently in the phase four of development, the land starts from a minimum RM31,000 per point (100 points equivalent to one acre) and the bangalows' features are being built according to owners' personal taste and preference. They are expected to fetch up to a whooping RM8 million per unit, said Loh.
Sarawak Chief Minister Tan Sri Abdul Taib Mahmud and former prime minister Tun Dr Mahathir Mohamad are among some of the public figures who have taken up the bungalow units.
But owners at the Borneo Forest (phase one), Golf Forest (phase two), Hornbill Forest (phase three) and Swan Lake Forest (phase four) need to abide by rigid rules on nature preservation and are encouraged to designate a small plot for organic farming with assistance from the resort, Loh said.
He said the resort management also reserves the right to replant up to three trees at a cost of RM500 each for every big tree chopped down by the owner.
Borneo Highlands Resort's business development manager Caroline Yeo said the resort, which is undergoing a RM3 million renovation and upgrading works, will have its 60 accommodation rooms reduced to 30 when it reopens in April next year.
Other infrastructure developments include the upgrading of the access road from the foothill to the plateau at a cost of RM8 million and the installation of electricity cables at an estimated RM8 million, Yeo said.
"Residents and visitors can have a peace of mind as regular security patrols as well as two security checkpoints are installed, including one at the entrance of the foothill," she said.
By BernamaE&O wins Best Investor Relations award
Property developer E&O Property Development Bhd emerged as joint winner in the Best Investor Relations in the Singapore Market by a Malaysian Company category at the IR Magazine Southeast Asia Awards 2007.
The first place is shared with lender Public Bank Bhd.
"This is the first time a Malaysian property developer has won this award. E&O Property will continue to emphasise on investor relations initiatives as an effective channel of disseminating financial information as well as relationship building with the financial community, be it analysts, fund managers, investors, shareholders or the media," said executive director Eric Chan in a statement.
The results of the awards were determined by research conducted with over 350 analysts, portfolio managers from China, Hong Kong, Taiwan, Singapore and other Asian markets.
By New Straits Times
Development corridor boost for Sabah
SABAH'S RM2.3 billion budget for next year, the biggest ever in the history of the state, augurs well for the implementation of the much anticipated Sabah Development Corridor (SDC).
The budget, unveiled by Sabah Chief Minister Datuk Seri Musa Aman last Friday, took into account the requirements to hasten the implementation of the SDC.
Expected to be launched by Prime Minister Datuk Seri Abdullah Ahmad Badawi next month, the SDC is poised to steer Sabah's economic development to greater heights.
Noting that excellent infrastructure was key to the success of the SDC, Musa said a whopping RM313 million of the RM839 million proposed for development expenditure would be allocated for the purpose.
Human capital development is also being given priority with RM200 million allocated for the establishment of the Sandakan Education Hub.
A separate allocation of RM55.8 million has been set aside for human resource development programmes to meet the requirements of the state, including the SDC.
"The SDC would be comprehensive and holistic to bring maximum development and economic spin-offs to the state", Musa told Business Times.
Besides creating economic spin-offs, the SDC will also generate employment opportunities for people in the urban and rural areas.
Musa attributed the state's ability to provide a huge budget to prudent and sound financial management that have seen in a marked increase in revenue.
This was reflected by this year's revised revenue of RM2.2 billion as against the original estimate of RM1.8 billion.
Musa, who is also the State Finance Minister, expects Sabah's revenue to continue to improve and has projected earnings of RM2.3 billion for next year.
The state is also on a sound financial footing with more than RM2.3 billion in reserves, a massive increase from just RM845 million in 2005.
By New Straits Times (By Joniston Bangkuai)
Quill Capita plans to buy properties from sponsors
Quill Capita Trust, a property trust partly owned by CapitaLand Ltd of Singapore, plans to buy two yield-accretive assets from its sponsors in the next three to six months to grow the trust, its manager said.
"We are looking at a couple of properties and they will come from our sponsors. We are currently in the process of discussion, working out the timing of injection and planning the valuation exercise," Quill Capita Management Sdn Bhd chief executive officer Chan Say Yeong told Business Times in an interview. He did not elaborate.
Quill Capita Trust's gearing came down to 0.7 per cent after completing a share placement in September that raised RM226 million.
This means it can buy around RM400 million worth of properties via borrowing before it needs to sell more shares. Gearing of a real estate investment trust (REIT) cannot exceed 50 per cent under the Securities Commission's rules.
The trust, with the backing of sponsors Malaysian property developer Quill Group and CapitaLand, has put in place a pipeline of assets that will ensure its future supplies of good quality purchase. Quill Capita Trust owns the first right of refusal to buy the properties developed by its two sponsors.
Some potential acquisitions may include the office tower known as Lot J at KL Sentral that is being jointly developed by Quill Group and the Malaysian Commercial Development Fund, a US$250 million (RM845 million) fund which CapitaLand has set up together with Malayan Banking Bhd to help finance its projects.
With 350,000 sq ft of net lettable areas, Lot J is currently under construction with a 2009 target completion.
Quill Group is also constructing an annexe building in Kuala Lumpur for lender HSBC Bank Malaysia. The project, due to be completed in 2010, is leased long-term to HSBC and may be put into the trust at some point.
In addition, CapitaLand's development fund has also invested in a project called One Mont Kiara together with Aseana Properties Ltd, that will build two blocks of office towers and a retail podium.
The development fund also has another project in nearby Hartamas, near the High Court, comprising office towers and retail units.
Meanwhile, Quill Group continues to build on several developments in Cyberjaya, with one project expected to be completed soon. Quill also has an office building in Petaling Jaya's Section 13 and a logistic centre in Subang that may be sold into the trust.
Further in the future, Quill may have the Vision City development that it bought from RHB Group ready for the trust.
"When choosing which REIT to buy, investors should look at which sponsor is serious about the property trust business." Chan said.
He said a REIT investor should hold a longer term view and pick those with sponsors that are willing to put in money to develop projects, so that the trust is guaranteed a pipeline of assets.
Quill Capita Trust, which was listed in January this year, has almost doubled its asset size to RM524 million so far, from RM276 million at the time of listing.
This is helping it to pay better dividends to sharehoders.
The trust now expects to distribute 6.23 sen per unit for fiscal 2007, from six sen before.
By New Straits Times (By Chong Pooi Koon)
4th Malaysia International Fashion Week kicks off
KUALA LUMPUR: The fourth annual Malaysia International Fashion Week 2007 (M-IFW ‘07) — this year’s premier platform for promoting Malaysia’s fashion talents to the world — took off at the Kuala Lumpur Convention Centre yesterday. Organised by the Malaysian International Fashion Alliance (Mifa), M-IFW ‘07 which will be running until Sunday will showcase creations from various renowned designers in Malaysia on runway shows, cocktail events, gala evenings as well as the prestigious Malaysian International Fashion Awards. The four-day event launched yesterday by Deputy Tourism Minister Datuk Donald Lim Siang Chai will also host the revamped mifa8 competition, mifa8 Fashion Forward. “I believe this fashion week will be a new trade for tourism and will encourage designers to grow to a higher standard. Fashion is not just about beautiful outfits, but at the same time, it is a good marketing platform in promoting Kuala Lumpur as a fashion platform,” said Lim. “With M-IFW ‘07 being the sole fashion week in Malaysia this year, we have the ideal opportunity to really take our core mission — which is to promote Malaysian fashion designers to the world and to bring the world to our homegrown talent — to the next level as we continue to consolidate Kuala Lumpur’s standing as a major Asia-Pacific capital with a constant flow of innovative fashion leadership and inspiration,” said Mifa CEO Syeba Yip. Drawing some of the best designers in the region, M-IFW aims to give these designers a platform to showcase their collections to buyers, media and industry heads from around the world. “Fashion is not just about styles and designs; it is an expression of culture. While models walk down the runway, each of us will be able to see a part of ourselves in these models as what they wear indirectly speaks to us individually,” said Mifa chairman Heah Sieu Lay. Among the other highlights of M-IFW ‘07 are KL Six — a showcase of the work of Malaysia’s renowned fashion designers presented by The Edge and theSun, a fashion showcase by Carven Ong, an Islamic Fashion Festival and various other runway shows. By The EDGE MALAYSIA
Regional property market to remain robust
Property investment activities in the Asia-Pacific are expected to remain fairly robust this year, given the solid economic and property sector fundamentals in the region.
According to the latest DTZ Research's Money Into Property report, investment activities in the region showed that domestic transactions still dominated the market, accounting for 72% of the purchases.
Buoyant market returns and a positive economic outlook have also resulted in a rise in foreign investment in real estate in the region.
Last year, foreign transactions made up 28% of the purchases compared with only 10% in 2005.
Among the active foreign players, US investors still accounted for the largest group in the region with 10% of total activities.
 |
Japanese and Australian investors followed with US$3.4bil and US$1.7bil respectively. (After being absent for the past few years, Japanese investors re-entered the international market last year.)
The office sector is still the main target for investors with US$25bil in transactions. In terms of lot size, large transactions worth over US$200mil accounted for more than 40% of the total transactions in the region for the past two years.
DTZ's Investor Intention Survey showed that instead of the traditional office and residential sectors, retail and industrial would be the focus for investors this year.
This is especially in China and India, as investors look for opportunities created by strong economic growth and rapid urbanisation in those countries.
In the residential sector, the double-digit population growth expected in the region in the next 20 years would create a high demand for housing.
While local investors have become more discerning and sophisticated, foreign investors have also benefited from the introduction of favourable regulations for foreign direct investment and positive structural changes.
 |
Although many economists think that appreciation in housing prices in the region has reached a “bubble”, DTZ Research said only China, India and New Zealand experienced real annual price rises of more than 8% in the past five years.
In the same period, the real rate of housing price appreciation averaged only 4.5% in the other parts of Asia-Pacific.
In the commercial sector, total commercial real estate stock reached US$9.4 trillion, overtaking Europe for the first time. China accounted for 44% of the total stock, followed by Japan and India with 22% and 15% respectively. In terms of invested commercial stock, Japan maintained its leading position, accounting for almost half of the invested stock.
Looking at market maturity, Australia, Hong Kong and Singapore ranked the highest with owner occupation ratios at around 30%, largely in line with other advanced markets in the US and Britain.
Japan, New Zealand and South Korea are next with occupation ratios from 45% to 71%, while other countries in the region have estimated ratios of 70% or higher – an indicator that opaque market conditions still exist in those countries.
Public markets are developing at a healthy pace across Asia-Pacific with quoted property companies showing 11% growth in net asset value.
Hong Kong, with a long history of having its real estate made available as an investment vehicle to investors, has the largest market capitalisation for quoted property companies worth a total US$190bil.
Meanwhile, the net asset values of real estate investment trusts (REITs) in the region grew at a record 24% last year to reach a market capitalisation of US$150bil – a return to the 1997 pre-Asian crisis level.
Australia led the REIT market with US$80bil in market capitalisation, followed by Japan and Singapore with US$41bil and US$13bil respectively.
Most REITs in the region, with the exception of New Zealand, Taiwan and South Korea, were traded at a premium to their net asset value, showing investors’ confidence in the REIT sector.
By The Star (By Angie Ng)
US-Malaysia Business Council to give input on IDR
KUALA LUMPUR: The US-Malaysia Business Council members have indicated they are ready to give their input as well as engage in dialogues on the Iskandar Development Region to enhance the attractiveness of the south Johor development project internationally.
Council chairman Joseph Alhadeff said the project was worth “close monitoring” as it had lined up several positive incentive structures to attract investors and businessmen.
“We have indicated that we are more than happy to keep the dialogues open with them (Iskandar Regional Development Authority) on how we can be helpful,” he said in an interview.
He said the council would disseminate information on IDR to US businessmen and investors.
Six targeted sectors identified for development in the IDR are financial advisory and consulting services, creative industries, logistics, educational services, tourism related services, and healthcare.
Other economic corridors recently rolled out in the country are the Northern Corridor Economic Region and Eastern Corridor Economic Region.
Alhadeff said the advantage of the IDR was its proximity to Singapore, apart from its natural resources and ports which are already “developed and can be developed”.
By Bernama
Construction costs expected to rise 15%
PENANG: The increased price of building materials is expected to increase the cost of construction as much as 15% next year, says Datuk Jerry Chan Fook Sing, chairman of Real Estate and Housing Developers Association Malaysia (REHDA) Penang.
He said the expected price increase was based on the continued rise in fuel prices as well as other direct increase in material prices.
“Contractors and housing developers are beginning to feel the rise in the costs of basic items like steel, cement, tar, steel and transport following the higher fuel prices,” he told reporters after a seminar on Penang's potential under the Northern Corridor Economic Region.
By Bernama
Sunway to remain leader of integrated resorts with expansion boost
PETALING JAYA: Sunway City Bhd’s property investment arm is expanding with an addition of a four-block commercial development and 25 villas following the RM80 million refurbishment of its flagship hotel, the Sunway Resort Hotel & Spa. The property investment arm’s managing director Ngeow Voon Yean said the four blocks of commercial buildings would be built in the vicinity of Sunway Resort Hotel & Spa and Sunway Pyramid. “It is the last piece of the jigsaw puzzle in our integrated resort. There is a demand for Grade A commercial office space in Petaling Jaya,” said Ngeow, adding that the project was still in planning stages. He said office buildings were the only aspect that was lacking in its integrated resort in Bandar Sunway which already has two hotels, villas, spa, shopping malls, theme park, hospital and universities. The 25 villas, which include a hot spring spa, would be built within Sunway City in Tambun, Ipoh, and was expected to be ready by early 2009. Ngeow told The Edge Financial Daily that the group intended to remain the leader in terms of providing comprehensive facilities to consumers. In the last three years, Sunway had gone through a series of expansion, which includes an expanded shopping mall; the addition of Pyramid Tower Hotel — a four-star hotel, Mandara Spa, 17 villas; and the RM80 million refurbishment exercise on Sunway Resort Hotel & Spa and the Pyramid Convention and Exhibition Centre. It has also obtained the franchise of London’s famous club the Ministry of Sound, which is set to open its doors in Sunway Resort Hotel & Spa by year-end. Also in the pipeline, is the opening of the dry park in Sunway Lagoon Theme Park at night. Its Sunway Hotel Seberang Jaya has also been expanded with the addition of an exhibition and convention centre which has a capacity of 1,200 people. “It (the integrated development) is our unique selling point,” he said, adding that this second round of asset enhancement programme was its strategy to stay ahead of the pack and continue to be a well-recognised resort brand in the region. Sunway City’s property investment arm include the shopping mall, theme park, hotel, education and medical centres. It contributes 40% of revenue to the group while the property development arm makes up the rest. “Now that the hospitality sector and shopping mall is fully expanded, we hope to improve the turnover contribution by 10% in the next two to three years,” said Ngeow. He also said that it was on a constant lookout to enhance products and services for customers. The property investment division also has a management arm that specialises in managing hotels, theme parks, shopping malls and facilities. It is in the final stages of negotiations to manage two four-star hotels in the Klang Valley and another in Siem Reap, Cambodia. It is also a consultant for two shopping malls in China. The division also planned to capitalise on the ever-growing medical and education tourism. “Many are coming from Indonesia and Singapore to seek treatment here. It shows that the confidence level in our specialists has improved. “Many Asian parents are also sending their children to study here and they can stay at our hotels as it is convenient,” he added. Asked if the group planned to expand overseas, Ngeow said: “If there is an opportunity that fits our investment criteria, we will consider.” Currently, its only hotel abroad is the Sunway Hotel Hanoi in Vietnam. By The EDGE MALAYSIA
State to soar higher with projects
PENANG: The proposed Penang Global City Centre and Seri Tanjung Pinang projects will enhance Penang's city status, according to an economic analyst.
UOB KayHian analyst Yee Nei Hui said Penang had the potential to soar to greater heights with such high-impact projects.
“With high-impact projects and vast potential under the Northern Corridor Economic Region (NCER) project, the state is poised to move to another level,” Yee said when presenting a paper on Penang high on the foreign fund managers' radar during the “NCER: Unleashing Penang's Potentials” seminar at the E & O Hotel here yesterday.
Yee said the seafront Seri Tanjung Pinang project in Tanjung Tokong that is being developed by E & O Property Development Bhd has proven to be a catalyst for development in the state.
Unlike the southern economic corridor initiative, Iskandar Development Region (IDR), which started from ground zero, NCER has a stronger base, the analyst noted.
The high-impact projects would attract more investors from Kuala Lumpur in view of the strong demand for residential projects in Penang.
“The price of houses will go up further, giving market players more room,” she said.
By The Star
Penang land prices not likely to dip, says expert
PENANG: The island's land prices are unlikely to drop, even if another economic slowdown happens, said Michael Geh, a senior partner at property consultancy Raine & Horne (Penang).
“For the past 10 years, Penang’s land value has been increasing,” he said yesterday when presenting a talk on Penang Property As A Global Asset during the “NCER: Seizing The Opportunities” symposium organised by Abad Naluri Sdn Bhd.
He also said it was a misconception to say that there was not much land left in the state.
“With NCER, Penang can be a microelectronic hub of excellence, logistics hub in the northern region and has potential for an oil industry spin-off,” he added.
He said Penang’s strengths were its friendly locals, strong engineering workforce and vibrant nightlife.
However, the state’s weaknesses were its over dependence on the electronics and manufacturing sector, limited direct flight destinations, lack of top jobs for other sectors and slow pace in property development.
He also said the state’s declining population growth due to intra-state migration would hamper its development rate.
By The Star
PGCC will benefit Penangites
Developer: Project not just to spur economic growth
PENANG: The RM25bil Penang Global City Centre project is a holistic initiative for sustainable growth that will benefit all Penangites.
The project is not just to spur economic growth, explained Equine Capital Bhd executive chairman Datuk Patrick Lim.
“The role of the developer goes beyond just the construction aspect. We are looking into future growth in all aspects.
“That is why we have engaged the best technical people, local and foreign, to find scientific and methodological solutions.
“We are not only looking at the issues brought up by NGOs, but we are going deeper into many other aspects,” he told The Star on the sidelines of the “NCER: Unleashing Penang's Potentials” at a hotel here yesterday.
 |
Sounding board: Participants attending the PGCC briefing in Penang on Saturday. |
“We are looking at the broader view, with input from many experts participating in the seminar,” he added.
Among the topics discussed were the economy, research, traffic, public transportation and sustaining mobility. Lim said the seminar was not organised to gain popularity.
“We are here for an open discussion and accountability. There will be more such seminars and public forums in the future,” he said.
The ecological impact of the project would be discussed in subsequent seminars, he added.
“We are committed to Penang. We are prepared to share with everyone. This is our corporate social responsibility,” he said.
The PGCC project that would take up 105.2ha of the current Penang Turf Club, will include the construction of international hotels and a mini-philharmonic centre.
It is expected to create about 30,000 jobs, of which 5,000 would be generated during the construction phase. The entire project is expected to take 18 years.
The project is undertaken by Abad Naluri Sdn Bhd, an associate company of Equine Capital Bhd.
By The Star
Saturday, November 17, 2007
11 new growth areas for Selangor
Selangor does not want to be left out in the nation's current aggressive development phase. While the federal government has initiated the creation of three major economic corridors on the north, east and south of the peninsula, Selangor state on the west will undertake on its own steam 11 hotspots for growth.
These are Lembah Bernam, Bestari Jaya, Selangor Automotive City, the Kuala Lumpur-Kepong development centre, the Selangor Vision City (Guthrie Corridor), Carey Island, Canal City, Pantai Morib, Vintage Heights, Sepang Gold Coast and Ladang Socfin.
State Town and Country Planning Department director Mohd Jaafar Mohd Atan revealed these areas at a workshop organised by the Selangor State Investment Centre on infrastructure and facilities development held in Shah Alam earlier this week.
"We expect these new growth areas to reach their full potential by year 2020," he said, adding that they come within the National Physical Plan, which the Cabinet approved in April 2005.
With the hotspots, infrastructure in the state would be enhanced to accommodate a projected population of 15.36 million.
"Efficient and sustainable urban development that is resilient, dynamic and competitive will be emphasised in these areas. Quality urban services, infrastructure and utilities will also be provided within them," Jaafar said.
However, he pointed out that several issues and challenges need to be addressed by the relevant parties in order to make the new growth areas a success. Among these is the need to develop linkages with the other development corridors of the peninsula – the Iskandar Development Region, the Northern Corridor Economic Region and the East Coast Economic Region.
"Besides making sure that they are well linked, we will also look into the provision of an integrated and efficient urban transportation system and adopt a holistic approach to town planning to achieve the goals of sustainable development," he said.
To ensure the success of the hotspots, Jaafar called for "collaboration and smart partnership" between key state agencies and major industry players.
A gazetted development plan emphasising sustainable development, he said, would be drawn up.
The growth areas are envisaged to benefit all economic sectors of the state, especially property and real estate, infrastructure, agriculture, industrial and multimedia.
By New Straits Times (Zuhaila Sedek)
Ken to develop high-rise project in Bangsar
Ken Holdings Bhd has set its sights on going really upscale with its entry into the Bangsar area. Executive director Sam C S Tan is putting a lot of effort into what he calls a gem of a site of less than an acre in Jalan Kapas where Ken Bangsar will be located.
This will be the group's first high-end high-rise project and an initial foray into the much sought-after location.
An artist impression of the lounge area of Ken Bangsar
His previous project was Ken III, in SS2, which is sandwiched between some low-cost apartments. The difference between both projects, in terms of price point and location, underscores the broad range of projects that Ken Holdings Bhd is undertaking.
Ken III's average price when it was first launched was below RM200 per sq ft. Ken Bangsar averages around RM1,000 psf. It is yet to be launched but is already 65% sold today.
Says Tan: “We do not focus on high end or low end projects. We do developments with a broad price range. Whatever it may be, we will deliver a good product. Our policy is at whatever price point, we sell below market price and give the buyer something above market price. We will build our reputation this way.”
The Ken Bangsar
Having set the standard with Ken Damansara II, which is located along the same road as Ken I and Ken III, in SS2, Petaling Jaya, Tan considers the company an old hen in Petaling Jaya.
“We have built a name for ourselves in Petaling Jaya. Going to Bangsar is something new for us so it is natural that we are putting a lot of effort into Ken Bangsar,” says Tan.
By going to that location, Tan and his father, who is managing director of Ken Holdings, are moving into the tuft of major players, the likes of BRDB and Eng Lian Enterprise Sdn Bhd, the initial developers of Bangsar.
“Going there will give us an opportunity to do something different. We do not want to be a follower. We want to be the trend setter.”
Ken Bangsar will be located on a cul-de-sac at one of the highest parts of Bangsar. The two condominiums closest to it are Ara View and Desa Bangsar Ria. There are other high-rise projects developments along Jalan Kapas but most of them have been around for a decade or more. This means Ken Bangsar will be the newest serviced apartment along that road.
There have been concerns that other high-rise in the vicinity will block its view. This is valid to a certain degree. Hence, the eight floor and above have been snapped up.
Besides selling the terrain and location, Tan is also marketing the design of the block. Some of the 2,600 sq ft units come adjacent to studio units. Although this combination come with two separate titles, it is possible to inter-connect the two and some of their buyers, says Tan, plan to do that.
“Buyers who buy the big unit together with the smaller one either plan to rent out the 1+1 or have their parents next door,” says Tan.
Sited on less than 1 acre, there are 80 over units. He plans to hand over the keys by the end of next year, which is fast considering the fact that they began selling the units the first half of this year. Each unit will have two car parks and four for the penthouse. Maintenance will be between 40 sen to 50 sen psf.
“We are able to deliver early because we completed half the structure before selling began. Buyers want to see something before they put their money down. We wanted to build confidence as well. The structure is completed until the 10th floor. It will have a total of 15 storeys, giving us ample time with the finishes and interiors,” says Tan.
Tan: We want to be a trend setter
He says the company has upgraded a lot of things even as they went along, although more than half of the units are already sold.
“I am giving even better finishes because I want to build my long term reputation. When people bought Ken Damansara II, it was averaging RM197 psf, today it is RM300 psf, beyond what we expected. We could have maximised our profit, but this will not build trust with consumers and we wanted the goodwill,” he says.
Most of the units range from about 2,000 sq ft to 2,700 sq ft. There are four triplex super penthouses, between 6,800 sq ft and 8,500 sq ft, that come with their own private swimming pool.
The price for penthouses ranges between RM6.5mil and RM8mil. Although the RM1,000 psf tag is not a benchmark price, it is the residence's location at the “peak” of a hill in affluent Bangsar that will add value to the place, says Tan.
Those who want to invest in this location really do not have much choice at the moment. BRDB’s upscale freehold 229-unit condominium development is more than 80% sold. The size of available units ranges from 3,200sq ft to 8,000sq ft, averaging RM950 psf. This is located behind Bangsar Shopping Centre, Bangsar, Kuala Lumpur.
The other project in Bangsar is Zehn Bukit Pantai, which some consider a better location as it is located on a quieter and less congested part of Bangsar, as opposed to Ken Bangsar’s site. It is next to the Pantai Hospital, which can be a boon or a bane, depending on how one looks at the neighbour. Although it is located on a main road, that part of Bukit Pantai is relatively quiet and less congested as most of the houses there are bungalows.
The second block of Zehn Bukit Pantai was launched about three months ago. There are about 20 units left of the 184-unit development. The sizes available are between 3,000 and 3,300 sq ft with average selling price of between RM600 and RM650 psf.
Zehn is a joint venture between Pantai Holdings Bhd as landowner and Juta Asia, formerly known as Dataran Kiara Sdn Bhd, as developer. The project is in collaboration with CapitaLand Financial Ltd, the Malaysian arm of Singapore's largest listed property player, CapitaLand. The developer decided to rope in CapitaLand, given its expertise and reputation for delivering high-quality, high-end properties.
Zehn’s second block was sold at an average price of RM650 psf, which is about half of Ken Bangsar. Zehn is leasehold. Ken Bangsar is on freehold commercial title.
For the sake of comparison, Benetton Properties Sdn Bhd launched Bangsar Peak at the end of last year. That freehold development comprises 39 units on slightly over an acre, half the density of Ken Bangsar and the price was about RM600 psf.
By The Star (By Thean Lee Cheng)
Friday, November 16, 2007
Talk on NCER in Penang
Residents up north, particularly in Penang, will get to know more about the Northern Corridor Economic Region (NCER) at a free seminar organised by Ho Chin Soon Research Sdn Bhd and Penang based HCK Technology & Information Services. The speaker will be Ho Chin Soon (pix), director of Ho Chin Soon Research.
To be held on Nov 28 at Cititel Hotel in Upper Penang Road, the talk will be beneficial to locals as well as real estate professionals including developers, property valuers, agents, town planners and architects.
Issues to be addressed include how the NCER would stake up to another government-driven
initiative in the form of the Iskandar Development Region (IDR), that was launched earlier, as
well as the Klang Valley.
Launched by the Prime Minister in July, the NCER is a development initiative that is expected to draw investments worth over RM170 billion from now till 2025. It was identified as
one of the areas to generate the country’s economic growth under the Ninth Malaysia
Plan. The NCER socio-economic blueprint will cover Perlis, Kedah, Penang and northern Perak.
“The NCER is the main focus of the talk and I’m sure the locals are interested to know how such a massive development will benefit them. There are also concerns on whether the IDR will pose a competition to the NCER,” says Ho.
He cites the example of foreigners who want to invest here but are unsure which project to go for since both NCER and IDR are located within Peninsular Malaysia. Ho will also identify areas in the NCER that will be worth investing in for the real estate market during his session.
Another highlight of the seminar will be the focus on Penang island. Ho says real estate activities tend to be concentrated on the island which already has a population of more than one million people. “Projects on the island bring the highest returns including yields and capital appreciation,” he adds.
For those interested in the seminar, the closing date for registration is Nov 19. To register, email johnny.chinkeat@gmail.com or ckho1@streamyx.com, or fax to 04-229 0766.
For more information, call 04-229 0766.
By theSun (By Loo Pik Kwan)
Talam projects on schedule
Talam Corporation Bhd’s financial restructuring exercise over the last two years has
not affected the construction schedule of any of its projects. “In fact, we will be handing over three phases in our Taman Puncak Jalil development in the next one or two months,” said its
executive director Chua Kim Lan.
Chua told PropertyPlus after the group’s EGM yesterday that progress on its other developments is moving along well and the group will focus on completing all its projects before
looking at new launches for next year.
“Our high-rise projects are 20% to 30% completed while our landed properties are close to
60% to 90% ready,” she added.
Talam has appointed IJM Corp Bhd as the principal contractor for all the group’s projects,
including previously stalled ones. The group is also involved in two 50:50 joint ventures (JVs) projects with the latter – Serenia Gardens (formerly known as Sierra Green) and Sierra Selayang, which has a combined gross development value (GDV) of RM1.5 billion.
Artist's impression of the Serenia Gardens homes
Serenia Gardens, located on a 90-acre leasehold tract in Ulu Kelang, has sold about 70%
of its first phase, comprising 225 terraced houses priced at RM350,800 onwards, since its soft
launch in September. The official launch is targeted by end of this year.
On Sierra Selayang, Chua said the layout for the project was recently endorsed after changes
to make it more for the highend market. “We are targeting to launch the development by 2Q
next year, offering only semi-dees and bungalows, different from the previously planned rows of
terraced houses.” The 204-acre project is located at the Ulu Gombak Forest Reserve, behind
the Gombak Land Office.
She said although the group is changing its business model to more high-end projects, it would
mostly be from JVs with IJM. “The reason for JVs is because our advertising permit has been
suspended and we can’t sell any products on our own. We also need to raise funds to pay off
some of our debts,” she added.
The group is also looking to start work on its China joint venture project after winter
(April) next year. It comprises an incomplete structure of a proposed 35-storey commercial,
office and residential building, together with 2 levels of basement car park, located on
a 1.65-acre tract in the heart of Changchun, Jilin Province. The project has a GDV of more
than RMB900 million (RM408.2 million).
By theSun (By Yap Yew Jin)
not affected the construction schedule of any of its projects. “In fact, we will be handing over three phases in our Taman Puncak Jalil development in the next one or two months,” said its
executive director Chua Kim Lan.
Chua told PropertyPlus after the group’s EGM yesterday that progress on its other developments is moving along well and the group will focus on completing all its projects before
looking at new launches for next year.
“Our high-rise projects are 20% to 30% completed while our landed properties are close to
60% to 90% ready,” she added.
Talam has appointed IJM Corp Bhd as the principal contractor for all the group’s projects,
including previously stalled ones. The group is also involved in two 50:50 joint ventures (JVs) projects with the latter – Serenia Gardens (formerly known as Sierra Green) and Sierra Selayang, which has a combined gross development value (GDV) of RM1.5 billion.
Artist's impression of the Serenia Gardens homes
Serenia Gardens, located on a 90-acre leasehold tract in Ulu Kelang, has sold about 70%
of its first phase, comprising 225 terraced houses priced at RM350,800 onwards, since its soft
launch in September. The official launch is targeted by end of this year.
On Sierra Selayang, Chua said the layout for the project was recently endorsed after changes
to make it more for the highend market. “We are targeting to launch the development by 2Q
next year, offering only semi-dees and bungalows, different from the previously planned rows of
terraced houses.” The 204-acre project is located at the Ulu Gombak Forest Reserve, behind
the Gombak Land Office.
She said although the group is changing its business model to more high-end projects, it would
mostly be from JVs with IJM. “The reason for JVs is because our advertising permit has been
suspended and we can’t sell any products on our own. We also need to raise funds to pay off
some of our debts,” she added.
The group is also looking to start work on its China joint venture project after winter
(April) next year. It comprises an incomplete structure of a proposed 35-storey commercial,
office and residential building, together with 2 levels of basement car park, located on
a 1.65-acre tract in the heart of Changchun, Jilin Province. The project has a GDV of more
than RMB900 million (RM408.2 million).
By theSun (By Yap Yew Jin)
Bolton to focus on high-end market
BOLTON Bhd (Bolton) will focus solely on property development in the medium to high-end market by the end of next year as it is in the midst of disposing its non-core assets and winding down its construction and engineering sector.
Azman: In the midst of disposing non-core assets
Its executive chairman, Datuk Azman Yahya, said the company has only RM150 million worth of non-core assets left, having already disposed its Hotel Midah to a private party for RM26 million. “Proceeds from the sale of our non-core assets will be used to reduce borrowings and to
buy land,” he said, adding that its Campbell Complex and Langkawi Fair are still up for sale.
Last Saturday, Bolton launched its maiden project in Penang, a RM170 million condominium project named Surin. Located on 3.4 freehold acres in Tanjung Bungah, 50% of the first block, comprising 198 units, have been sold.
“We will open the second block, which is the premium block with better views, once sales of the first block hit 80%,” said Azman. The entire project comprises two 28- storey towers with a total of 396 units.
Chan: RM2 billion worth of projects for next year
Bolton’s chief operating officer Chan Wing Kwong said the company has planned RM1.5 billion to RM2 billion worth of projects for next year. One of them is the Mayang development, a joint venture (JV) with UM Land Bhd.
“We plan to introduce it to the market in the fourth quarter of 2008,” said Chan. The 4.3-acre freehold project comprises condominiums with possible inclusion of office space. Prices have yet to be determined.
Also to be opened for sale next year is the second block of its RM80 million Tijani condominium. “We feel that the market will be stronger next year, that’s why we held back,” said Chan.
Meanwhile, its ongoing project, the 1,400-acre Bandar Amanjaya township in Sungai Petani, Kedah, has been 50% developed. It currently has 700 acres left with a gross development value (GDV) of between RM400 million to RM500 million. According to Chan, the company sells an
average of 500 to 700 units per year garnering average sales of RM30 million to RM40 million per year. It expects to complete the township within the next seven years.
“With a current land bank of 900 acres, Bolton will focus primarily in the Klang Valley and Penang. We will be accelerating our purchase of land in Penang now that we have a presence there,” he added.
By theSun (By Yeong Ee-Wah)
Azman: In the midst of disposing non-core assets
Its executive chairman, Datuk Azman Yahya, said the company has only RM150 million worth of non-core assets left, having already disposed its Hotel Midah to a private party for RM26 million. “Proceeds from the sale of our non-core assets will be used to reduce borrowings and to
buy land,” he said, adding that its Campbell Complex and Langkawi Fair are still up for sale.
Last Saturday, Bolton launched its maiden project in Penang, a RM170 million condominium project named Surin. Located on 3.4 freehold acres in Tanjung Bungah, 50% of the first block, comprising 198 units, have been sold.
“We will open the second block, which is the premium block with better views, once sales of the first block hit 80%,” said Azman. The entire project comprises two 28- storey towers with a total of 396 units.
Chan: RM2 billion worth of projects for next year
Bolton’s chief operating officer Chan Wing Kwong said the company has planned RM1.5 billion to RM2 billion worth of projects for next year. One of them is the Mayang development, a joint venture (JV) with UM Land Bhd.
“We plan to introduce it to the market in the fourth quarter of 2008,” said Chan. The 4.3-acre freehold project comprises condominiums with possible inclusion of office space. Prices have yet to be determined.
Also to be opened for sale next year is the second block of its RM80 million Tijani condominium. “We feel that the market will be stronger next year, that’s why we held back,” said Chan.
Meanwhile, its ongoing project, the 1,400-acre Bandar Amanjaya township in Sungai Petani, Kedah, has been 50% developed. It currently has 700 acres left with a gross development value (GDV) of between RM400 million to RM500 million. According to Chan, the company sells an
average of 500 to 700 units per year garnering average sales of RM30 million to RM40 million per year. It expects to complete the township within the next seven years.
“With a current land bank of 900 acres, Bolton will focus primarily in the Klang Valley and Penang. We will be accelerating our purchase of land in Penang now that we have a presence there,” he added.
By theSun (By Yeong Ee-Wah)
Themed resort for Pulau Indah
An integrated themed resort, dubbed D’Tiara Waterfront Resort, is to be developed on a 300-acre site in Klang’s Pulau Indah by oil and gas company Oilcorp Bhd through its property unit, D’Tiara Corp Sdn Bhd.
The first phase, covering 100 acres with a gross development value (GDV) of RM800 million, will include a business hotel, shopping mall, marina club, hotel suites and seafood hypermarket as well as residential villas and canal bungalows, said Oilcorp executive director Pua Yow Liang. It will be completed in four to five years’ time.
Pua: Pulau Indah ideal for resort development
“The hotel suites, priced from RM150,000 to RM300,000, will feature a sale and leaseback model while the canal bungalows will have their own waterfront where owners can leave their boats and walk directly into their homes,” added Pua.
Comprising 112 units, the 2-storey bungalows have land areas of between 6,000 and 7,000 sq ft and built-ups of 3,000 to 4,000 sq ft. Tentative prices will be between RM800,000 and RM1 million.
The leasehold project is due to be launched by the second quarter of next year. The entire development will be carried out in three phases and will take 10 years to complete.
“We already have planning approvals for the first phase. First up for launch will be the hotel suites and canal bungalows,” Pua told reporters after the sales launch of D’Tiara Amanahraya Hotel Suites yesterday. Confident of the success of the Pulau Indah project due to its ideal location, Pua is targeting not just local buyers from the Klang Valley but also foreigners including
those from the Middle East.
“The location is ideal for an integrated resort development and now, tourists tend to move away from the city centre. D’Tiara Waterfront Resort is a larger version of our resort development in Port Dickson and the size of our waterpark in Pulau Indah will be three times the size of the one in Port Dickson, up to 12.5 acres,” he adds.
The RM110 million D’Tiara Beach Resort, spread over a 23-acre tract in Port Dickson,
is a hotel-cum-serviced apartment development with 980 rooms and offers the largest man-made beach in the country.
Pua said it is also developing a leisure and health centre on a 3.5-acre freehold site in Genting Sempah comprising 36 villas.
“With a sales value of RM65 million, this project will be completed in two years. We plan to sell the entire project to a single investor or even a Real Estate Investment Trust fund,” he added.
Pua said the Pulau Indah and Genting Sempah projects form part of Oilcorp’s plans to develop the D’Tiara brand as a property player.
“We aim to have 50:50 concentration on hotel operations and property development as it will contribute recurring income as well as profit for the company,” he said.
The D'Tiara Amanahraya Hotel Suites and Corporate Offices will be completed by end 2011
On its four-star D’Tiara Amanahraya Hotel Suites in Brickfields, Pua is confident all 378 units of 1- and 2- bedroom suites will be sold out by the end of the year.
“With our competitive prices ranging from RM600 to RM700 psf, we already have confirmed bookings for 150 units. We also offer an attractive leaseback programme which guarantees a minimum 7% nett returns annually for five years,” said Pua, adding that it will be operating
the hotel and will also be absorbing the service fee.
With six designs to choose from, the hotel suites come with built-ups of between 587 and 1,032 sq ft. With a GDV of RM260 million, the 33-storey hotel will have 560 parking lots. Sited on a freehold 2.19-acre freehold site which it acquired 2½ years ago for about RM40 million, the hotel will also be adjoining the 35-storey D’Tiara Amanahraya Corporate Offices.
With a nett lettable area of 420,000 sq ft, D’Tiara sold the corporate offices to Amanah Raya Bhd for RM150 million in August. The D’Tiara Amanahraya Hotel Suites and Corporate Offices, with a total GDV of RM435 million, will start operations simultaneously upon completion by the
fourth quarter of 2011.
By theSun (By Loo Pik Kwan)
The first phase, covering 100 acres with a gross development value (GDV) of RM800 million, will include a business hotel, shopping mall, marina club, hotel suites and seafood hypermarket as well as residential villas and canal bungalows, said Oilcorp executive director Pua Yow Liang. It will be completed in four to five years’ time.
Pua: Pulau Indah ideal for resort development
“The hotel suites, priced from RM150,000 to RM300,000, will feature a sale and leaseback model while the canal bungalows will have their own waterfront where owners can leave their boats and walk directly into their homes,” added Pua.
Comprising 112 units, the 2-storey bungalows have land areas of between 6,000 and 7,000 sq ft and built-ups of 3,000 to 4,000 sq ft. Tentative prices will be between RM800,000 and RM1 million.
The leasehold project is due to be launched by the second quarter of next year. The entire development will be carried out in three phases and will take 10 years to complete.
“We already have planning approvals for the first phase. First up for launch will be the hotel suites and canal bungalows,” Pua told reporters after the sales launch of D’Tiara Amanahraya Hotel Suites yesterday. Confident of the success of the Pulau Indah project due to its ideal location, Pua is targeting not just local buyers from the Klang Valley but also foreigners including
those from the Middle East.
“The location is ideal for an integrated resort development and now, tourists tend to move away from the city centre. D’Tiara Waterfront Resort is a larger version of our resort development in Port Dickson and the size of our waterpark in Pulau Indah will be three times the size of the one in Port Dickson, up to 12.5 acres,” he adds.
The RM110 million D’Tiara Beach Resort, spread over a 23-acre tract in Port Dickson,
is a hotel-cum-serviced apartment development with 980 rooms and offers the largest man-made beach in the country.
Pua said it is also developing a leisure and health centre on a 3.5-acre freehold site in Genting Sempah comprising 36 villas.
“With a sales value of RM65 million, this project will be completed in two years. We plan to sell the entire project to a single investor or even a Real Estate Investment Trust fund,” he added.
Pua said the Pulau Indah and Genting Sempah projects form part of Oilcorp’s plans to develop the D’Tiara brand as a property player.
“We aim to have 50:50 concentration on hotel operations and property development as it will contribute recurring income as well as profit for the company,” he said.
The D'Tiara Amanahraya Hotel Suites and Corporate Offices will be completed by end 2011
On its four-star D’Tiara Amanahraya Hotel Suites in Brickfields, Pua is confident all 378 units of 1- and 2- bedroom suites will be sold out by the end of the year.
“With our competitive prices ranging from RM600 to RM700 psf, we already have confirmed bookings for 150 units. We also offer an attractive leaseback programme which guarantees a minimum 7% nett returns annually for five years,” said Pua, adding that it will be operating
the hotel and will also be absorbing the service fee.
With six designs to choose from, the hotel suites come with built-ups of between 587 and 1,032 sq ft. With a GDV of RM260 million, the 33-storey hotel will have 560 parking lots. Sited on a freehold 2.19-acre freehold site which it acquired 2½ years ago for about RM40 million, the hotel will also be adjoining the 35-storey D’Tiara Amanahraya Corporate Offices.
With a nett lettable area of 420,000 sq ft, D’Tiara sold the corporate offices to Amanah Raya Bhd for RM150 million in August. The D’Tiara Amanahraya Hotel Suites and Corporate Offices, with a total GDV of RM435 million, will start operations simultaneously upon completion by the
fourth quarter of 2011.
By theSun (By Loo Pik Kwan)
Bolton in final phase of shift to pure property play
KUALA LUMPUR: Bolton Bhd is in the final phase of restructuring with plans to dispose of RM150 million of non-core assets, the proceeds of which will be used to fund its property projects in the Klang Valley. Its executive chairman Datuk Azman Yahya said the proposed disposal of its 20.01% stake in Symphony House Bhd could be completed by January next year while there were currently no potential buyers for Campbell Complex in Jalan Dang Wangi here. Bolton has sold its quarry and premix businesses for RM6.5 million cash while its construction and engineering segment was being wound down and would be fully exited by the end of next year. It also wants to sell Langkawi Fair for at least RM45 million. Speaking to reporters after its EGM here yesterday, Azman said its gearing had dropped to 0.6 times now and would go down further to 0.5 times upon the completion of the proposed disposal of Hotel Midah in Cheras for RM26 million. Bolton has changed its focus purely on property development and it is looking for joint venture partners for more property projects. “We will manage our risks by bringing in JV partners, by launching property products fast and by selling properties at a good margin,” Azman said. He said Bolton’s order book currently stood at RM3 billion and 75% of that could be realised in the next 24 months. The group currently has a total land bank of 900 acres. “The main GDV comes from the four-acre Mayang project near KLCC (with a gross development value of RM1.5 billion). Both the Mayang project and Seremban’s Jalan Bukit Ceylon project (GDV of RM100 million-120 million) will be launched by the end of next year,” he said. Mayang’s selling price will be above RM1,000 per square feet. Its Bandar Amanjaya township in Sg Petani have a remaining 700 acres with a GDV of about RM400 million to RM500 million. It is selling at an average of RM30 million to RM40 million annually over a seven-year period. Azman said Bolton’s property projects had profit margins of between 20% and 30%. He said Bolton planned to hit a RM5 billion GDV in the next two years through acquisition of land banks and the group planned to buy high value land banks that could be taken up quickly. “We soft launched The Surin condominiums project (GDV of RM170 million) in Tanjung Bungah, Penang last Saturday. The official launch will be end of this year. Of the 198 units launched last week, we sold 99 units. “Once we have sold 80% of the 198 units, we will launch another block of the 198 units condos. Selling price for these condos is between RM250,000 and RM700,000,” he added. Bolton foresees a double digit growth in its operating profit in FY08 from sales of property, reduced borrowings and the raising of of the selling prices of its properties. By The EDGE (By Lim Yu Min)
AmInvestment lead arranger for Al-‘Aqar KPJ REIT’s Sukuk Ijarah programme
KUALA LUMPUR: AmInvestment Bank Bhd has been appointed lead arranger and principle advisor for the issuance of RM300 million in nominal value for the Al-‘Aqar KPJ REIT’s Sukuk Ijarah programme, said managing director and chief executive officer TC Kok. Speaking at the signing ceremony of the programme on Nov 16, he said: “Al-A’qar would be provided with a medium-term flexible financing platform to implement its investment and growth strategies.” Al-‘Aqar KPJ REIT is a Malaysian-based unit trust owning and investing in Syariah-compliant real estate and assets used for commercial purposes. Kok said that the programme would allow for funding to finance the acquisition of the five new hospitals, and others in prime areas. “The acquisition will also enhance the overall profile of Al-A’qar’s portfolio and lower its overall funding costs to improve its distribution yield to unitholders,” he added. The Sukuk Ijarah programme has a tenure of seven years and provides flexibility to the funding vehicle of Al-‘Aqar KPJ REIT, Al-‘Aqar Capital Sdn Bhd, to issue up to RM285 million Islamic medium term notes and up to RM15 million Islamic commercial papers. The programme is backed by cash flows from Al-‘Aqar KPJ REIT’s existing six hospitals and five new hospitals and secured against the asset value of these 11 hospitals. By The EDGE (By Basil Foo & Woon Wu Lin)
D’Tiara eyes Mideast and Europe investors
Parent Oilcorp to remain in control after AIM listing
KUALA LUMPUR: Oilcorp Bhd property unit D’Tiara Corp Sdn Bhd is targeting investors from the Middle East and Europe for the company’s proposed listing on the London Stock Exchange’s Alternative Investment Market (AIM) by the first quarter of next year.
Executive director Pua Yow Liang said the listing exercise was currently at due diligence stage.
“Oilcorp will remain a controlling shareholder in D’Tiara Corp after it is listed on the AIM ,” he said after the launch of D’Tiara AmanahRaya Hotel Suites here yesterday
According to Pua, D’Tiara Corp expects to launch next year two property projects: the D’Tiara Leisure & Health Resort in Genting Sempah and D’Tiara Waterfront Resort in Pulau Indah, Klang.
The former had a gross development value (GDV) of around RM110mil while the 300-acre waterfront resort had a GDV of about RM800mil for the first 100 acres of development, Pua said.
On the 378-unit hotel suites project, he said there were 150 confirmed bookings from local and foreign investors, translating to almost 40% pre-launch take-up rate.
“We expect the remaining units to be sold within three to six months,” he said.
Pua said D’Tiara Corp was offering an “attractive” leaseback programme, which would guarantee to pay a minimum 7% net return per annum for five years to each purchaser.
The hotel suites is part of the 8,871 sq m freehold D’Tiara AmanahRaya Office and Hotel Suites. The GDV of the whole project, located within the KL Sentral locality, is about RM435mil.
Oilcorp and AmanahRaya Bhd signed an agreement in August for the entire office block to be underwritten and jointly developed by the latter’s subsidiary AmanahRaya Development Sdn Bhd.
By The Star
Seal to build eco-industrial park
PENANG: Seal Inc Bhd, which has about RM52mil cash after the completion of its restructuring exercise, will use part of it to develop an eco-industrial park in Kelantan and complete a RM20.5mil commercial project in Permatang Pauh.
It was also identifying new business opportunities and scouting for suitable land for residential and commercial projects, group executive director Fang Siew Hong told StarBiz.
For the eco-industrial park in Kuala Krai, Seal planned next year to develop about 120 light industrial buildings on a 15-acre site.
“The buildings, with an estimated gross sales value of RM50mil, are designed for the bird’s nest cultivation business and other commercial uses,” she added.
About RM2mil would go towards setting up a veneer manufacturing plant in Kelantan, Fang said.
“The plywood produced would be for the export market. The veneer manufacturing business complements our current core business in timber logging in Kelantan and Kedah,” she said.
Fang said the two-year restructuring involved the disposal of land in Seberang Prai and a shopping mall in Selangor under a sale and lease back arrangement.
“The disposal of these properties generated about RM150mil, which was used to settle the group’s borrowings, thus reducing the gearing to less than 4% or RM5mil from 58% or RM80mil previously.
“We are left with RM52mil for working capital and security deposit,” she said.
On Seal’s timber logging business, Fang said it had the concession to log a 10,000-acre site in Kelantan and a 1,000-acre site in Kedah.
“Since January, the group has logged about 7,500 tonnes of timber, with an estimated value of about RM6mil. The timber is sold to plywood factories, sawmills and the furniture industry in the country,” she said.
By The Star (By David Tan)
IOI profit for first quarter jumps to RM451m
All major business divisions post higher revenue
KUALA LUMPUR: IOI Corp Bhd’s net profit soared almost 80% to RM451.52mil for its first quarter (Q1) ended Sept 30, from RM255.7mil in the previous corresponding period.
Revenue was 64% higher at RM3.12bil against RM1.9bil previously. Its Q1 net profit was 25% of analysts' consensus forecast of RM1.8bil for FY08.
All major business segments reported improved revenue on higher palm oil prices, increased volume for resource-based manufacturing and higher sales of properties, IOI Corp said in a statement.
“The group's pre-tax profit for Q1 is RM628.25mil, an increase of 85% compared with RM338.74mil a year ago, contributed by better performance in all major business segments,” it said. Earnings per share rose to 7.37 sen from 4.22 sen.
Year-on-year, plantation earnings were 134% higher to RM397.5mil, boosted by significantly higher crude palm oil (CPO) prices.
Average CPO prices realised in Q1 was RM2,473 per tonne compared with RM1,483 per tonne in the previous corresponding period.
Its resource-based segment reported 33% rise in operating profit to RM122.8mil with the inclusion of profit from Pan Century Group and volume growth.
Its property segment continued to perform well, with operating profit growing 37% to RM109.7mil from RM80.1mil before, driven mainly by higher demand for commercial and high-end residential properties.
“The percentage increase of the group's net earnings level is lower than the percentage at pre-tax level due mainly to higher tax expense as a result of the expiry of certain tax incentives at the end of the year ended June 30 (FY07),” IOI Corp added. It said all business segments were expected to further improve in performance for FY08. The plantation segment in particular was expected to benefit from higher trending palm oil prices.
In a separate filing with Bursa Malaysia, IOI Corp proposed for its subsidiary IOI Resources (L) Bhd to issue up to US$600mil nominal value five-year unsecured guaranteed third exchangeable bonds, which were exchangeable into new IOI Corp shares.
“The gross proceeds from the proposed bonds issue will be utilised to fund capital expenditure, investment or acquisition opportunities, working capital and to defray the estimated expenses of the bonds issue,” it said.
By The Star
Gefung moving into W. Asia, North Africa via JV
PETALING JAYA: Having established a foothold in China, Gefung Holdings Bhd is spreading its wings to West Asia and North Africa via a joint venture with major shareholder, Saudi Economic & Development Co Ltd (Sedco).
Sedco direct investment group managing director Yousuf Khayat said the venture to new markets would help diversify Gefung's income base and mitigate the fluctuations in its earnings from China.
China is a major market for Gefung, which has been riding on that country's construction boom.
However, the marble and granite product manufacturer has been hit by the Chinese government's measures to cool the property sector, which has been perceived as being overheated given the spiralling property prices.
Gefung managing director managing director Seo Aik Leong said the company's earnings had been affected by the delays in several projects worth more than 50 million yuan (RM22mil).
The company has guaranteed pre-tax profits of RM28mil and RM28.3mil for the financial years ending Dec 31, and 2008, respectively.
For the nine months ended Sept 30, Gefung posted a pre-tax profit of RM9.56mil on revenue of RM43.9mil.
Seo admitted it would be difficult for Gefung to achieve the guaranteed profits this year. “We would have been able to make that much profit if not for the delays in the projects in China,” he added.
Yesterday, Gefung signed an agreement with its 22% shareholder Sedco, whereby it will form a JV with a Sedco affiliated company TAWJEEH. Gefung will 50.01% interest in the JV.
The JV will build a marble and granite processing plant in Turkey, which would have at least double the capacity of Gefung's facilities in Shanghai, in order to serve the new markets in West Asia and North Africa.
The plant was expected to be completed by September, said Seo, who anticipates contribution from Middle East to flow in from next year. The JV firm will be incorporated in the Middle East with an initial paid-up capital of US$13.5mil.
Under the agreement, Gefung will inject its two quarries in Turkey into the JV company at a price to be determined later.
By The Star
Talam expects to send plan details to SC by end-Nov
TALAM Corp Bhd expects to submit supplementary details on its proposed regularisation plan appeal to the Securities Commission (SC) by the end of the month.
Talam executive director Chua Kim Lan said the company is meeting with bondholders to secure their approval for the proposed regularisation plan.
"The detailed framework has been given, it's just that we have to give official details for forecasts which we drew up under the framework," she told reporters after the company's shareholders meeting yesterday.
Chua said a majority of the bondholders have agreed to the conditions and company officials will meet with the remaining two bondholders by end of the month. Talam needs at least 75 per cent of the bondholders' to agree to the arrangement.
Meanwhile, Chua said all of the company's stalled projects are in various stages of completion. She said the few projects previously not taken over by IJM Corp Bhd are being finalised to be awarded to them to be completed.
IJM will develop all of Talam's stalled projects.
The fact that some of the stalled projects were not being continued by IJM had been one of the concerns highlighted by the SC.
Chua said the RM90 million adjustment required by the SC was an accounting entry adjustment, which did not have any material effect on the company's balance sheet.
The SC had directed Talam on October 3 2007 to rectify and reissue its financial statement for the year ended January 31 2006 by restating the debtors and reversing the corresponding amounts from property development cost of about RM56.8 million, other liabilities of about RM23.2 million and opening retaining profits of RM9.9 million.
Shareholders yesterday approved Talam's reissued financial statements for the financial years 2006 and 2007.
By New Straits Times (By Presenna Nambiar)IOI Corp Q1 profit surges to RM452m
IOI Corp Bhd, Malaysia's most valuable firm, reported a 77 per cent surge in the first quarter net profit due to high palm oil price and better sales from its property and manufacturing divisions.
It also expects all of its business to show improvement for the year to June 30 2008.
IOI made a net profit of RM451.5 million for the first quarter ended September 30 2007. Revenue jumped 64 per cent to RM3.12 billion.
"All major business segments reported increase in revenue," IOI said in a statement to Bursa Malaysia yesterday.
The group is benefiting from high crude palm oil (CPO) price which hit a record of more than RM3,000 per tonne this year. This was mainly due to the rising use of CPO as an alternative energy source.
It said that it sold CPO at an average price of RM2,473 per tonne for the quarter, compared with RM1,483 for the same quarter last year.
Plantation earnings for the quarter more than doubled to RM397.5 million.
The group's resource-based manufacturing segment, where it makes chemicals and specialty fats derived from palm oil, posted a one-third jump in operating profit to RM122.8 million.
On the property side, the division continued to perform well with an increase in operating profit by 39 per cent to RM109.7 million.
This was driven largely by higher demand for commercial and high-end residential properties.
IOI Corp executive chairman Tan Sri Lee Shin Cheng told reporters after its annual general meeting recently that the group is set to achieve another record high in the current fiscal year.
The group reported a 78 per cent surge in net profit to a record RM1.4 billion in the year ended June 2007, on the back of a record RM8.9 billion revenue.
IOI also said its wholly-owned subsidiary, IOI Resources (L) Bhd, is issuing up to US$600 million (RM2.02 billion) exchangeable bonds which can be exchanged into IOI Corp shares of 10 sen each.
The bonds will be issued and offered outside Malaysia to certain non-US persons.
Money from the bond issue will be used to fund capital expenditure, investment or acquisition opportunities and working capital.
By New Straits Times (By Sharen Kaur)
Subscribe to:
Posts (Atom)
Posts
