Select Right Properties For Investment

Every property investor hopes to generate good profit from his real estate investment. Therefore, whether it is for personal use or for investment, selecting the right type of property is important. While there are many views on this subject, here are some basic principles and guidelines that can help investors:

In considering investment in new developments, the reputation and success of the developer is important. - File Photo

1 Location

Selecting a good location is critical; it can include an area which has a high demand for rental, an area that is self sustaining in terms of shopping convenience, availability of schools/colleges, proximity to towns and cities, whether it is self-contained, etc. A location that is established and matured has a record of good yields and returns.

2 Accessibility and transportation system

Accessibility and transportation is another key factor for growth of all townships, as it contributes to the development of surrounding areas. Roads, railways and LRT accessibility not only add value to the property but also the convenience of travel.

3 Selling price

When selecting the property, it is advisable to compare the selling price of similar properties in the neighbouring areas. This is to determine whether the property you are planning to invest in is overpriced or underpriced. These records can be obtained from estate agents and this information can guide you to really understand price movements over a period of time. There are many properties that are underpriced and it takes time to search for them.

4 Brand

In considering investment in new developments, the reputation and success of the developer is important. Developers with a good track record deliver properties as promised with good quality finishes and as scheduled.

5 Timing

It is important to note that timing does help when the property market is in an overheated situation. Since the real estate industry has its own economic cycle, we must try to understand in which cycle we are in. However, in any market properties worth investing in, it is a general rule not to invest in overpriced properties at any point in the cycle.

6 The amenities

The surrounding amenities are an added advantage to the residents as they will give much convenience and result in a comfortable lifestyle. The nearby commercial area and facilities provided by the property itself are among the factors to be considered in real estate selection.

7 Restriction and condition

When investing in real estate, we must make sure it is not bound by too many restrictions and purchase conditions and this can be reflected in the title. Otherwise, one might face a lot of difficulties or trouble by the time we want to sell off the real estate. The restrictions include land usage, private caveats and transfer restrictions which will affect the selling price of the property.

8 Other considerations

We should also think about our own financial constraints to avoid excessive debt, the returns on investment, cash flow consideration, etc. In addition, when calculating the returns, we should also consider our ability to pay for the loan instalment. We should never overlook other hidden costs such as legal fees, security charges, service fees, maintenance fees, assessment, quit rent, etc.

In conclusion, property acquisition planning is important before we decide to acquire a property. We should choose properties which are cost effective and have potential for high return on investment. One should consider wisely from the various angles provided above. In all situations visit and inspect the property before you make a purchase decision. In some small degree non-financial factors such as feng shui and geographical direction also affect the value of your investment.

By The Star (by Tan Kang Yap)

This article is part of an on-going real estate education programme by the Malaysian Institute of Estate Agents (MIEA), 88-B, Jln SS 21/39, Damansara Utama, 47400 PJ. Tel: 03-77277477 Fax: 03-77293693 E-mail: secretariat@miea.com.my Website: http://www.miea.com. my

Construction sector works to plug brain drain

PETALING JAYA: The Master Builders Association Malaysia (MBAM) is planning nationwide road shows this year on employment opportunities in the construction sector as part of its efforts to address the country's shortage of skilled workers in the sector.

According to MBAM president Patrick Wong, the association plans to visit schools, colleges and universities to give talks on the career opportunities in the sector.

“The construction sector has been facing a severe brain/skill-drain problem for the past year, especially at the consultancy levels and we foresee it to be worse this year. Although it can’t be solved overnight, we need to start addressing it from the education level,” he told theSun at the Real Estate and Housing Developers’ Association open house held recently.

For the road shows, MBAM will be working with the Construction Industry Development Board of Malaysia to recruit jobless graduates to be trained with its 600 members nationwide.

Wong said that local workers have been headhunted to take up offers in Singapore since the start of the two large integrated resort developments there, as well as to Taiwan and the United Arab Emirates.

“There is a construction boom worldwide and local workers are attracted by the higher pay and better benefits.

Malaysian workers are highly in demand as they speak English, are multi-skilled and can handle the jobs on site,” he added.

On the rising costs of construction, Wong said MBAM members faced average increases of 12% last year, and expected costs to rise between 18% and 22% this year.

“The major impact will be felt in the first quarter due to the simultaneous launches of projects in this period including the Iskandar Development Region, Northern Corridor Economic Region, Eastern Corridor and Penang Second Link. With so much demand, the cost of labour, machinery and raw materials are bound to increase,” he added.

In order to cushion the impact, he advised members to be more productive and seek out new methods to do construction work.

“For example, they can use skim coats instead of plaster walls to bring costs down. Alternatively, use the type of machinery that requires lesser manpower,” he said.

On the automatic price mechanism for setting new cement prices scheduled to start in January, Wong said that it has not taken effect and believed the reason to be that the actual cost of the raw material has not increased.

By theSun (by Loo Pik Kwan)

F&N set to launch maiden residential project

PETALING JAYA: The property division of Fraser & Neave Holdings Bhd (F&N) is planning to launch its maiden residential project on commercial land known as Ampang Hilir 233, located on a 1.56-acre tract along Embassy Row in Jalan Ampang, Kuala Lumpur, this year.

Property division general manager Cheah Hong Chong (pix) said, the niche project comprises 434 serviced apartments with built-ups from 430 sq ft to 1,001 sq ft, as well as office suites and retail lots.



“We are targeting the development at local and foreign buyers and investors looking for quality, high-end residential units in a prime location in the heart of KL’s city centre.

“We are currently evaluating the pricing but it will match the market value of around RM700 psf,” Cheah said.

Also the developer of Fraser Business Park in Sungai Besi, it completed and handed over Phase 1 and is now concentrating on completing the second phase known as Zon.e@Fraser Business Park, which was launched in September 2006. To date, 75% of the second phase has been taken up and is targeted for completion in 2009, with a gross development value (GDV) of RM350 million.

Positioned as the region’s first purpose built ICT hub to be equipped with cuttingedge digital technology, the integrated commercial development will feature ICT retail business lots, Malaysia’s first budget e-hotel, serviced apartments and the city campus of a university college.

Cheah said the transformation of F&N’s former factory land into prime commercial office and retail space has not only benefited the group but also provided purchasers with healthy returns within a short timeframe.

“Capital returns for the 5-and 6-storey shop offices in Phase 1 have shot up, with some units being sold at more than 50% over the initial purchase price during its launch in 2004. For instance, a unit originally priced at RM1.8 million is now worth between RM2.8 million and RM3

million,” he told theSun.

On the group’s future plans, he said F & N would continue to focus on the ICTcentric theme for
all commercial and residential projects. “Other than Fraser Business Park, other good commercial developments at the group’s existing factory sites can be expected down the road,” he said.

F&N will also explore the possibility of collaboration with reputable institutions and brands to develop value-added products that complement the group’s own projects, he added.

In line with the need to build a stronger brand image for its property division and improve customer service efforts, F&N has built a dedicated property gallery and strengthened its in-house sales and marketing team. “The property division will realise its aspirations of owning its own identity once F&N Properties Sdn Bhd is set up,” Cheah said.

While unlocking the value of its current and future property developments, the soft drinks and dairy products manufacturer’s property division will maintain its current conttribution of 8% to 10% to the group’s overall revenue and earnings, he added.

“We expect the property division to continue contributing sustainable income to the group through projects that feature product innovation coupled with an ICTcentric theme,” he said.

For its financial year ended Sept 30, 2007, F & N recorded a net profit of RM152.9 million on revenue of RM2.9 billion. Its property division recorded an operating profit of RM20.6 million on revenue of RM65 million in the year under review.

By theSun (by Yap Yew Jin)

Sime Darby launches latest Putra Heights offerings

PETALING JAYA: Sime Darby Property recently launched Garnet, its latest offering of double-storey linked homes, in Putra Heights.

The 82 units of Garnet double-storey link homes, sized at 24ft by 75ft, with built-up from 2,160 sq ft to 3,440 sq ft and priced between RM373,888 and RM705,888, will be completed by January 2010. Since its launch, 47 homes, or 57%, have been sold.

Putra Heights, situated adjacent to the neighbouring townships of Subang Jaya, UEP Subang Jaya (USJ), Puchong and Shah Alam, is an integrated township of mixed residential and commercial properties.

“The newly completed Putra Point commercial centre and the completion of a new RM65 million interchange at the Elite Highway (by year-end) will certainly make Putra Heights one of the preferred townships in the Klang Valley,” said Sime Darby Property senior executive vicepresident Datuk Abdul Wahab Maskan.

Located on prime freehold land along Putra Avenue (within Putra Heights), Garnet offers a choice of four layout plans with standard features including three air-conditioning units, 11-foot high ceilings (ground floor), eight-foot-high main entrances, auto-gate systems and concealed drainage.

“Our corner and end-lot units have been enhanced further with six bedrooms, a larger car porch that can accommodate up to three cars, and three-phase wiring,” Abdul Wahab said. He added the openconcept design for the living and dining areas, and the courtyard allows continuity
and better ventilation between indoors and outdoors.

Abdul Wahab said Putra Heights, a 727- hectare development, is a fast-emerging vibrant township.

Previous launches there include the Sapphire, Ruby, Amethyst and Emerald double-storey link homes that have been receiving very encouraging responses from interested homebuyers. Amethyst and Emerald, for example, have take-up rates of 80% and 61% respectively.

Amethyst units, with built-ups of between 2,160 sq ft and 3,440 sq ft were priced from RM373,888 to RM712,888, while Emerald units, with built-up areas between 2,050 sq ft and 3,860 sq ft, were priced from RM349,888 to RM750,888.

The township will comprise approximately 11,500 units of both residential and commercial properties once it is fully completed within the next four years.

Sime Darby Property’s previous developments include the highly successful Subang Jaya and USJ townships.

By theSun (by Rosalynn Poh)

DRB-HICOM gets offer for mall

DRB-HICOM Bhd, the country's largest integrated automotive concern, has received a S$150 million (about RM344 million) offer for a shopping mall it owns in Singapore's Little India, people familiar with the matter said yesterday.

The offer is some 50 per cent more than what it received in 2006. However, it is unlikely to sway the management team to sell the Singapore asset anytime soon.

"There won't be a fire sale of assets. Instead, there are plans to make additional investment into the asset before a transparent sale can be considered," said a person representing a shareholder of the company. He spoke on condition of anonymity.

It is believed that DRB-HICOM intends to pump in between RM10 million and RM20 million to refurbish and rebrand the six-storey Tekka Mall, which sits on 6,332 sq m of commercial land in between Serangoon and Sungei Road.

DRB-HICOM bought the land in Singapore a year before the Asian financial crisis and only started developing the land in 2002. It is estimated that its cost of investment, including the land, is about S$188 million (RM431 million).

Tekka Mall (the automotive group's first property venture abroad), alongside Raba Nyrt (Hungary's only publicly-traded vehicle parts maker), is among assets deemed as non-core. They have been earmarked for sale to raise about RM500 million in fresh capital.

DRB-HICOM, under the stewardship of managing director Datuk Mohd Khamil Jamil, has been doing a juggling act of selling assets and buying new ones. This is aimed at reducing debts and adding more urgency to the group's focus.

Although a mainstay in the automotive sector, DRB-HICOM has sizeable interest in property development, defence and services.

It also has interest in the plantation business via its ownership of the fully-matured Connemara Estate, which sits on 6.26 million sq m of land in Ulu Langat, Selangor.

The estate land could be converted for property development. But for now, DRB-HICOM is content to reap dividends from firm palm oil prices.

Mohd Khamil declined to speak on specifics, but told Business Times that the management team's efforts thus far had been helped by the free hand given by major stakeholders of the company.

The major shareholders are tycoon Tan Sri Syed Mokhtar Al-Bukhary (15.4 per cent), the Employees Provident Fund (17.48 per cent) and Khazanah Nasional Bhd, the government-owned investment arm (10.33 per cent).

Since his appointment to the job in February 2006, Mohd Khamil's team has shaved off almost RM505 million of the group's debts by getting rid of non-core businesses and improving operational and financial efficiency to strengthen the group's balance sheet.

To date, DRB-HICOM has outlined plans on the sale of its stake in EON Capital Bhd and Uni.Asia Capital Sdn Bhd, which will raise about RM2 billion cash.

As at March 31 2007, DRB-HICOM had debts of about RM2.2 billion. Interest on the debts for the year under review stood at RM143.69 million, or about 94 per cent of its net profit of RM156.53 million.

By New Straits Times (by Francis Fernandez)

Pride of Kota Kinabalu’s waterfront

An integrated mixed development is to take pride of place in Sabah’s capital, right smack on the waterfront in Kota Kinabalu city centre, along Jalan Tun Fuad Stephens.

Described as the city’s “most exciting tourist attraction development to date”, Kota Kinabalu City Waterfront (KKCW) will take the form of a 2km-long boardwalk rising above the sea on stilts and built with eco-friendly materials.

According to developer Waterfront Urban Development Sdn Bhd (WUD), the project is set to be “a thriving waterfront pedestrian walkway that will seamlessly connect a variety of retail, lifestyle, residential and hotel establishments”.

To be completed by 2010, the RM500 million KKCW will incorporate environmentally friendly features such as high-tech LED lighting, energy conserving air-conditioning systems and solar powered pedestrian lighting along the boardwalk.

“The project was conceptualised after detailed studies of several thriving world-class waterfront attractions,” WUD managing director Reymee Mohamed Hussein said.

These sites included Darling Harbour in Sydney, Australia; Cape Town Waterfront in South Africa; Victoria Harbour in Hong Kong; Canary Wharf in London, England; and Clark Quay Riverside in Singapore.

Launched by Prime Minister Datuk Seri Abdullah Ahmad Badawi in Kota Kinabalu at the close of last month when he also unveiled the Sabah Development Corridor (SDC), KKCW is being undertaken in collaboration with the Kota Kinabalu City Hall.

WUD, Kuwait Finance House (Malaysia) Bhd and a consortium of Malaysian and Middle Eastern investors will fund the project.

“KKCW is in line with Kota Kinabalu’s overall urbanisation and development master plan … it will increase the role of coastal cities as catalysts for modernisation and development,” Reymee said.

“We designed the development to unlock the potential of the city’s waterfront. It will feature one of the longest city waterfront boardwalks in Asia and is poised to become a tourist attraction as well as an integral part of Sabah’s hospitality industry.”

The retail element will be formed by “elegant stores and chic boutiques” in an open-air layout, as well as a luxury fashion mall catering to upscale consumers and tourists.

Aside from giving the city a new lifestyle heartbeat, Reymee said KKCW will also spur economic growth for Kota Kinabalu and provide employment and new business opportunities for local residents and businesses.

WUD is a subsidiary of Orienthold Waterfront Development Sdn Bhd, a private company established in 2004 with the principal objective of promoting the waterfront development concept.

By New Straits Times (by G. Umakanthan)

An artist's impression of Kluang Mall

PETALING JAYA: The Kluang Mall in Kluang, Johor — Majupadu Development Sdn Bhd's maiden commerical development — is expected to fi ll the needs of residents living in the area, said RCMC Sdn Bhd retail consultant Richard Chan. RCMC is the consultant for the development, that conducted a market study prior to the commencement of the first commercial
project for the Kluang-based developer.

“We believe the timing is right [for the project to kick off] as people living in the area are becoming more affluent and have stronger spending power,” he said, adding that the new mall would have a ready catchment of some 300,000 people with household incomes averaging about
RM4,000 per month.

Located on a 6.5-acre leasehold tract, the shopping mall is situated along Jalan Rambutan, a major access route in the heart of the town centre to several established residential schemes including, Niyor and Chamek in the north, Ayer Hitam and Sri Lalang in the west, Renggam in the south, and Kahang in the west.

The 2 ½-storey building has a gross area of about 800,000 sq ft with a net lettable area of 450,000 sq ft. It also has a 550ft-wide frontage and 1,200 parking bays. “In terms of size, it might not be able to compete with major shopping malls [in the Klang Valley] but Kluang Mall will be the largest in the district within a 50km radius,” Chan said.

He added that the mall would introduce a modern shopping experience to the residents staying in the area. According to him, there are currently two other smaller shopping centres in the vicinity with net lettable areas of less than 200,000 sq ft.

“It will also have a contemporary design, similar to modern malls in the Klang Valley such as One Utama and Mid Valley Megamall. Design elements include 18ft high shop fronts, spacious walkways between 35ft and 53ft wide and large atriums for exhibitions and promotions,” he said.

Kluang Mall is expected to be completed by the end of this year and would be open to the public before Chinese New Year 2009.

It has a gross development value (GDV) of RM90 million.

Majupadu Development managing director AK Tey said the mall would spur business activity in the area and offer more shopping variety for Kluang residents by attracting new, reputable brands not available previously. “Pacific Group will become the anchor tenant, taking up 120,000 sq ft over two levels, with other major retailers coming in include Popular Bookstores, Secret Recipe and Capcom Family Theme Park,” he said.

He added that the group intends to elevate the lifestyles of the residents and change the business landscape of Kluang.

“We hope to target not only the mass market but also the middle- to higher-income groups,” he said.

Majupadu Development is the Kluangbased developer of several residential schemes there such as Taman Gunung Lambak, Taman Majupadu and Taman Delima. The developer’s latest project
is Taman Delima 2, a mixed residential development of 1,189 units with a GDV of RM200 million.

“The first phase comprising about 1,000 units has been fully sold and completed.

Phase 2, consisting of 126 units of 1-storey terraces and 2-storey semi-dees launched in the third quarter of last year has seen a take-up of some 85%,” he said.

Future projects by the group include the development of 10 shop office units and a 120-room hotel in Kluang’s town centre as well as a 6.23-acre commercial development in the outskirts.

By theSun (by Yap Yew Jin)

Sarawak corridor draws RM500bil

The private investment exceeds state's target

SIBU: The Sarawak Corridor of Renewable Energy (Score) got off to a great start with some RM500bil worth of private investment committed at its launch in Bintulu yesterday.

Prime Minister Datuk Seri Abdullah Ahmad Badawi said the proposed investment was made in 24 memoranda of understanding (MOUs) signed during the launch.

The proposed investment has already exceeded the RM334bil that the Sarawak Government said was required to fully develop the regional economic corridor by 2030.

Sarawak Chief Minister Tan Sri Abdul Taib Mahmud said the proposed investment included for the fisheries sector by Australian companies that were not earlier anticipated.

“I am very pleased that on the first day (of the launch of Score), the private sector has already come forward and indicated intention to invest in Sarawak,” Abdullah said after opening the Centennial Hall of SMK St Elizabeth at Jalan Oya here yesterday.

He said the development of oil and gas as well as hydro resources, infrastructure, transport and communications sectors in Sarawak required very big investment, and there were also plans to develop heavy industries.

“The private sector investment is expected to be more than the amount we have indicated in our plans. This augurs well for Sarawak,” he said.

The energy-intensive industries to be set up within the corridor are at least two aluminium smelters.

Sarawak Energy Bhd, Cahya Mata Sarawak Bhd (CMS) and Rio Tinto Aluminium Ltd inked a RM5.25bil deal for the supply of 1100MW of energy. Other deals signed included:

·Sarawak Energy and Press Metal Bhd for the supply of 510MW worth RM2.5bil;

·Sarawak Energy and Sime Darby Bhd for 2,400MW from Bakun and undersea transmission line worth RM22.5bil;

·Sarawak Energy and Tenaga Nasional Bhd to analyse energy options, develop coal potentials and infrastructure worth RM50bil;

·Carbon Capital Corp Sdn Bhd and Japan Carbon Mercantile Co Ltd for a biodiesel plant worth RM1bil;

·Konsortium Galdasar Sdn Bhd and Yuh Yow Fisheries Taiwan for a 800ha aquaculture project worth RM100mil;

·Konsortium Galdasar and Shei Chui Oceanic Enterprise Taiwan for shipbuilding worth RM40mil;

·Bintulu Development Authority and Zinc Ox Resources England for zinc electro refinery plant worth US$350mil;

·Sarawak Energy and a consortium of banks for RM3bil to RM20bil in financial deals;

·CMS and Rio Tinto on training for its aluminium smelter;

·CMS and Rio Tinto and Aluminium Pechinery for the supply of technology to Salco aluminium smelter; and

·CMS, MMC Corp Bhd and Pan Kingdom Investment Co for financial deals worth US$1.5bil.

In terms of area of coverage and monetary investment, the Sarawak regional development corridor has topped the other development corridors in the country. A total area of hinterland measuring 70,000 sq km is expected to be developed, affecting more than 600,000 people.

According to the development blueprint yesterday, the core projects would involve the setting up of power generation plants to churn out at least 20,000MW of electricity.

High priority sectors have also been identified for development – petroleum, aluminium, metal production, glass production, tourism, palm oil plantations, livestock, fishing, timber plantations, aquaculture and marine engineering which includes ship-building and ports construction.

Abdullah yesterday allocated an initial sum of RM5bil in federal funds towards the development corridor in Sarawak.

By The Star (by Jack Wong, Sharon Ling & Stephen Then)

Malaysia launches billion$ Sarawak development plan

MALAYSIAN Prime Minister Datuk Seri Abdullah Ahmad Badawi has launched a development project worth nearly US$100 billion to fuel growth in resource-rich Sarawak.

Abdullah said the government would spend an initial RM5 billion (US$1.54 billion) to kickstart the Sarawak Corridor of Renewable Energy, with private investment targeted at RM300 billion (US$93 billion).

The Sarawak plan — the last of five regional economic blueprints being rolled out — focuses on developing the state’s energy resources of hydropower, coal, natural gas and petroleum.

“The development, distribution and consumption of energy is a core element leading to the success of the Sarawak Corridor,” Abdullah said at the launch.

The premier said the project aims to bring economic growth and eradicate poverty in the predominantly rural state by 2030, by creating some 800,000 jobs and luring billons in private investment.

“It’s not going to be less than RM300 billion (ringgit). It’s a huge amount but it involves large developments in various fields ... in Sarawak, which is a very large (state),” he said.

The area earmarked for development is a 320-kilometre stretch along the Borneo coast facing the South China Sea, and covers an area of 70,708 square kilometres — 57 per cent of the state.

Officials say the main engine of growth for the project is the use of hydroelectricity supplied by the Bakun Dam to power various large-scale heavy industries.

Abdullah yesterday witnessed the signing of a RM5.25 billion power-supply deal between Rio Tinto Alcan and Malaysian utility Sarawak Energy Bhd for a planned aluminium smelter on Borneo island.

Rio Tinto and local partner Cahaya Mata Sarawak (CMS) have proposed building a US$2 billion smelter, which would be among the world’s largest.

Sarawak Energy also signed an agreement with Press Metal Bhd. to supply 510 megawatts of electricity to a RM2.5 billion aluminum smelter project that will commence operations in July 2010.

Malaysian conglomerate Sime Darby Berhad and Sarawak Energy Berhad also inked a deal worth RM22 billion to manage the 2400-megawatt Bakun dam and construct its transmission cables.

The two companies will also undertake a project to lay undersea power cables to transmit electricity from the dam to peninsular Malaysia. - AFP

By New Straits Times

IOI Properties set to unveil project in IDR

Developer to launch Taman Kempas Utama by second quarter

JOHOR BARU: IOI Properties Bhd will launch a mixed property development along the North-South Expressway (NSE) in Kempas.

General manager (property division) Simon Heng said Taman Kempas Utama would be launched by the second quarter of the year.

He said the project, on a 101.171ha, would have 2,000 residential and commercial units. Of the land, 20.2ha will be allocated for light industrial buildings.

We plan to offer high-end doublestorey link houses with gated and guarded and smarthome concepts« SIMON HENG

“It is timely for us to have a project in the Johor Baru district after our success in the ongoing Bandar Putra Kulai project,’’ Heng told StarBiz in a telephone interview.

He said the location of Taman Kempas Utama in the Kempas-Tebrau growth corridor within the Iskandar Development Region (IDR) augur well for the company.

Heng said the project was easily accessible from the NSE after the Skudai toll plaza, Jalan Kempas Lama and Jalan Senai-Seelong.

He said the Kempas-Tebrau corridor was currently the hottest spot for property development in south Johor with more than 10 ongoing projects.

Heng said the outlook for the property sector in south Johor was promising and some of the biggest names in housing development were launching projects there.

He said IOI Properties was still working on the gross development value of the project, adding that it would take between eight and 10 years to develop the scheme.

“We plan to offer high-end double-storey link houses with gated and guarded and smart-home concepts,’’ he said.

Heng said the demand for high-end houses was growing in the IDR, especially with the presence of more developers from the Klang Valley.

He said IOI Properties was targeting upgraders, especially existing house owners in Kempas-Tebrau area, as they would prefer to buy houses within the vicinity.

He said the company was also looking at professionals and foreign buyers.

He said the continuous inflow of foreign investment and the creation of some 800,000 jobs over the next 15 years in the IDR would push up demand for houses there.

By The Star (by Zazali Musa)

TTDI sees record earnings this year

TTDI Development Sdn Bhd expects a record after tax earnings this year, helped by sales of current projects and those from new launches, its chief said.

It expects profit to jump 36 per cent to RM85 million in the year to December 31 2008. Revenue should triple to RM600 million.

The company made RM62.5 million in after tax profit on top of RM204 million revenue last year.

"We are confident of achieving our target, largely driven by several new developments taking shape this year," group managing director Datuk Johan Ariffin told Business Times in an interview.

In 2006, TTDI posted an after tax profit of RM31.4 million, on the back of a RM162 million revenue.

The developer also aims to keep gearing, a measure of debt, below 0.5 times. It has debt of RM142 million, which is 0.3 times its shareholders' funds currently.

TTDI has 197.6 hectares in Kuala Lumpur and Shah Alam. It is developing some 14 commercial and residential projects, plus mixed developments, worth more than RM6 billion.

Its latest product and also its first high-end integrated residential and commercial project is Platinum Park in Kuala Lumpur. The RM4 billion project will be developed over five to eight years on a 3.64ha site.

Johan said TTDI is expected to sign a second enbloc sale for another tower at Platinum Park this year, worth some RM550 million.

Platinum Park comprises seven towers. The first tower, a 50-storey office block, was sold to the Federal Land Development Authority (Felda) for RM640.7 million last month.

TTDI aims to also launch seven new projects this year, with a combined value of RM2 billion.

There are The Valley TTDI in Ampang; Jayamas II in TTDI Jaya, Shah Alam; phase 1 of TTDI Kajang, TTDI Puchong and TTDI Alam Impian; phase 3 of Laman Seri and Laman Seri Business Park in Section 13, Shah Alam.

"These projects will contribute positively to the company's earnings this year. Alam Impian, which will be launched in the second quarter, will contribute RM52 million," Johan said.

Johan said the phase 3 bungalows of Laman Seri are already 54 per cent sold even before the launch. It anticipates a similar success for Laman Seri Business Park, which will generate RM143 million in sales this year.

TTDI has also identified land in real estate hotspots like Penang and Johor to take advantage of rising demand.

"Several projects have and are being studied but, to date, we have not concluded any," Johan said.

TTDI also has long term plans to venture abroad.

Tan Sri S.M. Nasimuddin S.M. Amin, the company's chairman, told Business Times the company is mulling niche developments in Singapore, Indonesia and Vietnam in the near future.

"We are looking at various plans to expand and it includes developing landbank jointly with strategic local partners overseas," Nasimuddin said.

By New Straits Times (by Sharen Kaur)

Plan for biggest property IPO

TTDI Development Sdn Bhd, well-known for its Taman Tun Dr Ismail township in Kuala Lumpur, is set to launch Malaysia's biggest property initial public offering (IPO) this year, its top official says.

The property arm of the Naza Group, TTDI has hired CIMB Investment Bank Bhd to arrange the IPO and listing.

"The IPO targets a market capitalisation of at least RM850 million," TTDI group managing director Datuk Johan Ariffin told Business Times in an interview recently.

It plans to list its shares on the main board of Bursa Malaysia in the third quarter of 2008. It will submit a listing request to the Securities Commission by March or April, Johan said.

The IPO will ride on a wave of excitement over the property market. Easier rules have spurred strong demand for high-end residential properties.
There is also strong interest from foreign and local investors for commercial property in Kuala Lumpur.

TTDI currently has projects in hand worth more than RM6 billion.

Its biggest project is the RM4 billion Platinum Park commercial and residential project at Jalan Stonor, Kuala Lumpur.

"TTDI aims to raise an estimated RM100 million via a rights issue prior to the IPO for expansion of land bank and working capital," Johan said.

However, he declined to say how much TTDI will raise from the IPO.

Johan said post-IPO, TTDI's share capital will balloon to RM450 million from RM223 million now.

"We are in the process of preparing for the IPO. We anticipate it will be among the bigger issues this year, if approved," Johan said.

TTDI will use the IPO proceeds to fund working capital and expansion plans, and to part finance development costs.

The company is also planning to launch seven new projects this year, worth RM2 billion collectively.

They are Phase 1 of TTDI Kajang, comprising 56 units of double-storey link homes; The Valley TTDI, a one-ha residential development in Ulu Klang, Ampang, with 134 units of high-end bungalows and linked villas; Phase 1 of TTDI Puchong, consisting of 137 units of three- and four-storey shop offices; and Phase 1 of TTDI Alam Impian, with 136 units of double- storey link homes.

Others would include Laman Seri Phase 3, a gated residential development with 33 bungalows; and Laman Seri Business Park, comprising 46 units of four- and five-storey shop offices, both in Section 13, Shah Alam. It will also launch Jayamas II, which has 26 units of two- and three-storey shop offices in TTDI Jaya.

By New Straits Times (by Sharen Kaur)

Foreign investors keen on Encorp

PETALING JAYA: Talk has surfaced in the market that foreign investors are eying Encorp Bhd for either a strategic stake in the company or to purchase from the company its prized assets.

A source told StarBiz that negotiations were under way and that the parties interested in taking up a block of shares in Encorp were linked to Middle Eastern investors. Another proposition was foreign interest to purchase Encorp's properties, the source added.

Encorp group chief executive officer Yeoh Soo Ann, when contacted, said he was “not aware” of any Middle Eastern interest in the company.

However, he said there were “enquiries” from interested parties regarding Encorp's properties.

“The locations of our properties are quite good but nothing has firmed up yet. It all depends on pricing,” Yeoh said.

Investors from the Middle East have been flocking to the Malaysian corporate scene over the past few years with interest mainly in infrastructure, construction, property, banking and telecommunications.

Encorp provides an attractive entry into the construction and property segment.

Based on Bloomberg's estimate of Encorp's earnings per share (EPS) at 22.7 sen for the financial year ending Dec 31, 2008 (FY08) and yesterday's closing price of RM1.50, the stock is trading at a cheap price/earnings (PE) of 6.6 times.

The company also turned around last year. For the first nine months ended Sept 30, it posted a net profit of RM69.5mil compared with a loss of RM15.7mil in the previous corresponding period. It is due to release its full-year results by the end of this month.

The overhang over the national teachers' quarters project with the Government was also resolved last year, resulting in subsidiary Encorp Systembilt Sdn Bhd receiving RM11.3mil a month from the Government until January 2028.

This will ease cash flow especially for future projects. Its two present developments, The Strand Damansara mixed commercial project and the Cahaya Alam township in Shah Alam, are also progressing well.

The Strand Damansara still has an unbilled portion of some RM700mil for the development of small office home office and serviced apartments.

Yeoh said the company's prospects remained “optimistic'', given that it had the resources and “quite good cash flow'' to undertake new projects.

Encorp is exploring property opportunities in the southern and northern corridors while looking for construction jobs in east Malaysia.

In September last year, Sarawak Energy Bhd sold a 26.4% stake in Encorp at RM1.46 a share to Pegang Impian Holdings Sdn Bhd. A day later, a 17.9% stake in Encorp was sold at RM3 a share.

By The Star

Genting Intl borrows S$4.2b to build casino

BIG GAMBLE: Genting International funding will help the firm compete with Las Vegas Sands Corp as both race to open Singapore's first casino resort in about two years.

SINGAPORE: Genting International plc, a unit of Asia's biggest gaming operator by market value, borrowed as much as S$4.2 billion (RM9.6 billion) to build a casino-resort in Singapore, more than double its outstanding debt.

The unit of Kuala Lumpur-based Genting Bhd hired DBS Group Holdings Ltd, Oversea-Chinese Banking Corp, Sumitomo Mitsui Banking Corp, HSBC Holdings plc and Royal Bank of Scotland Group plc to arrange the borrowing, according to a statement sent to the Singapore exchange yesterday.

"It is a big gamble," said Lim Kok Boon, Singapore-based chief investment officer at Fortis Private Banking, which manages US$9.5 billion (RM billion) in assets. "It is hard to tell how it is going to pan out for them, but clearly the casino project cannot fail as Genting International and the Singapore banks will be badly implicated."

The company's funding will help the company compete with Las Vegas Sands Corp as both race to open Singapore's first casino resort in about two years. The two gaming developments will have Singapore's casino market for at least 10 years before the government opens up the industry to further competition.

Genting International's funding will add to the S$2.17 billion raised in an August rights offer in August and S$450 million of convertible bonds sold in April to fund its project on Singapore's Sentosa island. The development will include Southeast Asia's first Universal Studios theme park.

The company's borrowing consists of a S$4 billion loan and S$192.5 million in a bank guarantee facility, the statement said.

The company has US$1.4 billion of outstanding debt, according to data compiled by Bloomberg.

Genting International declined to comment on the terms of the loan except that it's "very happy" with them.

Las Vegas Sands, the world's largest casino operator by value, hired eight banks last year to arrange a loan of about S$5 billion for its Singapore gaming resort in the city's downtown.

The two casino loans top the S$1.56 billion offered to CapitaLand Ltd, Singapore's biggest developer, and Sun Hung Kai Properties Ltd, Hong Kong's largest, for their Orchard Turn project. The 2006 loan for the shopping mall and luxury home development in downtown Singapore was the largest for a Singapore property project since at least 1999, according to Bloomberg data.

By Bloomberg

Dijaya unit buying land for RM30mil

PETALING JAYA: Dijaya Corp Bhd's indirect wholly-owned subsidiary Nadi Jelita Sdn Bhd has signed an agreement with Beta Fame Sdn Bhd to acquire four parcels of freehold agriculture land for RM29.5mil.

The land, totalling 93.4 acres, is in Kuala Langat, Selangor.

In a filing with Bursa Malaysia yesterday, Dijaya said the proposed acquisition was expected to be completed by the first quarter of 2009.

Nadi Jelita plans to carry out mixed development on the properties with an estimated gross development value of RM270mil.

The purchase was in line with the company's objective to increase its land bank for development to generate long-term sustainable income.

By The Star

Ranhill clinches RM1.2b hospital contract

RANHILL Bhd, Malaysia's largest engineering group, has been awarded a RM1.2 billion contract to build a 600-bed women and children hospital in Kuala Lumpur, sources say.

The contract is to build two 13-storey tower blocks with a six-floor podium, with a total floor area of 190,000 sq metres, a source said.

"It also includes extending another 100 beds in the future, when demand meets supply," he added.

Business Times understands the federal government contract was given recently and Ranhill has commenced works at the site. The hospital is an extension of the existing Pediatric Institute at the Kuala Lumpur Hospital.

It will be the leading referral centre in the country upon completion by 2011.

The source said Ranhill, via its wholly-owned unit Ranhill Engineering and Constructors Sdn Bhd, aims to finish building the two towers ahead of schedule.

In doing that, the contract has been divided into two packages to speed up the works.

"The first package, worth around RM17 million, is for site- clearing and logistics. The second portion involves the main structural work, which is expected to start by June," the sourcen said.

"Ranhill is finalising the project structure and cost. The details will be ready in two weeks," the source added.

The source also said that the contract award is expected to mitigate Ranhill's plan in achieving RM2 billion in revenue by 2010.

For the 12-month period to June 2007, Ranhill posted a profit of RM117 million and revenue of RM1.47 billion.

Ranhill, which has over RM1 billion worth of contracts for the Desaru Highway, sports complexes across the country and water jobs through unit SAJ Holdings Sdn Bhd, is eyeing more jobs here.

Overseas, it plans to secure new infrastructure and sewerage treatment works in Libya and water, waste water and power plant projects in India.

By New Straits Times (by Sharen Kaur)

733 high-end homes to be launched by June

SOME 733 units of three-storey landed residential properties with gross sales value totalling over RM700mil will be launched by June on the Penang island.

The developers launching the properties include SP Setia Bhd, E&O Property Development Bhd and Chong Co Sdn Bhd.

SP Setia Property Division (North) general manager S. Rajoo said SP Setia was ready to launch 392 units of three-storey terraced and three-storey semi-detached houses with a gross sales value of RM362mil before mid-2008.

Rajoo said the group expected to generate RM200mil in revenue this year from the sales of new launches.

“Some 172 units of the terraced and semi-detached properties, priced between RM800,000 and RM1.3mil, are for the Setia Pearl Island project located on a 112-acre site in Sungai Ara.

“The remaining 220 units are smaller terraced properties with built-up areas of 2,200sq ft for our new project, Setia Vista, located on a 21 acre in Relau, the south-west district of the island.

Artist’s impressions of SP Setia's semi-detached houses being developed in the Setia Pearl Island scheme in Sungai Ara.

“Due to their smaller size, the Setia Vista properties are priced from RM658,000,” he said.

Rajoo said there were about 37,000 units of landed residential properties of all types on the island.

“These are all occupied. About 3,000 units of landed residential properties are being planned for launching and undergoing construction on the island.

“Penangites know that in the next two to three years, there will hardly be any new landed residential property launches. This is why they are buying now.

“Since last April, we have launched 558 units of three-storey terraced houses with a gross sales value of RM368mil, of which about 75% has been sold,” he said.

Chong Co director Chan Foek Onn said the company planned to launch in the second quarter the Taman Pantai Indah and BJ Residency projects, comprising 209 three-storey terrace and semi-detached homes with built-up areas ranging from 3,000 to 4,000 sq ft.

The gross sales value for both projects is RM182mil.

“The Taman Pantai Indah scheme in Batu Uban near the Penang Bridge comprises 62 properties.

“The BJ Residency is a gated community project on a 8-acre site in Bukit Jambul, the south-west district of the island.

“These properties will be priced above RM850,000,” he added.

Chan said home purchasers were no longer looking for just a house with rooms and bathrooms.

“Architectural designs and spaciousness for privacy counts.

“For our homes, we provide Mediterranean and contemporary tropical designs that come with slope roofs, patios, open arches and large windows for breeze to flow in easily,” he said.

E&O Development Bhd is also launching 132 three-storey semi-detached houses and three-storey bungalows with a gross sales value of RM180mil by June.

Its marketing director K.C. Chong said the semi-detached houses with built-up areas of 4,000 sq ft were priced at RM1.5mil. “The bungalows, with built-up areas of 5,000 sq ft, are priced between RM2.6mil and RM3mil,” he said.

Both the semi-detached and bungalow units come with five to six bedrooms, Chong said.

PPC International Sdn Bhd managing director Mark Saw said the concept and theme of landed residential homes were equally important for the marketing of such properties.

Artist’s impressions of SP Setia's terraced houses being developed in the Setia Pearl Island scheme in Sungai Ara.

“For SP Setia's Setia Pearl Island scheme in Sungai Ara, the developer constructs its residential properties around unique landscape themes differentiated by aromatic plants and trees.

“The Setia Pearl Island homes are within a guarded community, equipped with around-the-clock security and closed-circuit televisions,” he said.

Saw said E&O Property's Seri Tanjung Pinang project was developed around the “lifestyle-by-the sea” theme.

“To be developed in the near future is The Waterside project, which comprises a marina, retail and leisure outlets, boutiques, as well as an entertainment complex within the Seri Tanjung Pinang,” he said.

By The Star

Casa Del Mar plans RM300m expansion

The Casa Del Mar Group plans to invest some RM300 million to build four to five new boutique hotels and to buy more land to develop resorts in Malaysia.

"We are looking at something in Penang, Terengganu and Port Dickson. In Sabah, we are eyeing several sites. We have identified one and are in discussions with the land owner," group managing director Tan Sri Syed Yusof Tun Syed Nasir told Business Times in an interview recently.

Casa Del Mar, owned by Syed Yusof and Sultan Sharafuddin Idris Shah, the Selangor state ruler, owns the 34-room Casa Del Mar boutique hotel in Langkawi.


The hotel is managed by Singapore's HPL Hotel & Resorts Pte Ltd, which is controlled by Ong Beng Seng, a close associate of Syed Yusof and the Sultan.

Casa Del Mar is building its second property, dubbed Casa Del Rio boutique hotel and serviced apartments, in Malacca, for RM85 million. It is due to be ready by September 2009.

It also plans to develop 40 hectares at Terengganu's Perhentian Island. The land is owned by the Sultan.

"We will build boutique hotels, resorts and villas at the site for some RM100 million," Syed Yusof said.

Also in Terengganu, the group will revive an abandoned project in the city centre and convert the property into a five-star boutique hotel this year.

"Boutique hotels peg good rates. Looking at trends these days, people want to stay in a more personalised environment, making them feel closer to home when they travel," Syed Yusof said.

"Demand for such rooms are rising and there are not that many boutique hotels here," he added.

Boutique hotels are small luxury hotels with limited rooms, often priced at more than US$150 (RM484.5) a room per night.

Typically, the hotels are unique in architectural style, have sophisticated interior design, and offer services and food at par with international standards.

Other properties owned by Syed Yusof are the 570-room Concorde Hotel Kuala Lumpur, the 381-room Concorde Shah Alam, the 338-room Concorde Inn KLIA and the 18-room Lakehouse in Cameron Highlands.

He also owns speciality restaurants like Saloma Theatre Restaurant, the Hard Rock Cafe, Planet Hollywood, Genki Sushi in Malaysia and Capital FM88.9, a new radio station.

By New Strait Times (by Sharen Kaur)

Penang island draws luxury home builders

The most expensive landed residential properties on the Penang island today are located in Tanjung Bungah, Tanjung Tokong and Batu Ferringhi in the North-East district, and Sungai Ara in the South-West district.

These properties are three-storey terraced, three-storey semi-detached and three-storey bungalows, which are priced between RM800,000 and RM3mil.

The builders are reputable developers from Kuala Lumpur and Penang.

Henry Butcher Malaysia (Penang) Sdn Bhd director Dr Teoh Poh Huat said: “Generally, the value of landed residential properties in these areas have appreciated by about 10% yearly since the dawn of the new millenium.”

Some of the completed Hill View Garden terraced houses in Tanjung Bungah.

He told StarBiz that due to high land cost and rising building material prices, it was no longer profitable for developers to build double-storey houses.

“About two years ago, developers here started to build three-storey homes with larger built-up areas and higher selling prices.

“Presently in the market, the selling price for a three-storey terraced starts from about RM800,000, while for a three-storey semi-detached house ranges from RM1.3mil to RM1.8mil, depending on the size.

“The three-storey bungalow unit is priced between RM1.8mil and RM3mil,” he said.

In Tanjung Bungah, Chong Co Group, a reputable developer with good track record, is developing the Hill View Garden, comprising about 200 units of three-storey terraced and three-storey semi-detached houses on a 20-acre site.

“These properties, priced between RM800,000 and RM1.8mil, are over 80% sold.

“They are selling well because of their large built-up areas that can cater to the needs of families living with their grandparents,” Teoh said.

The Hill View Garden three-storey homes have built-up areas ranging from 3,300 to 5,000 sq ft, depending on the type that come with four to five bedrooms, and porches large enough to accommodate three cars.

In Batu Ferringhi, similar types of three-storey landed residential properties were being developed, said Teoh.

“Blossom Time Sdn Bhd is launching in mid-2008 some 129 units of three-storey landed residential properties comprising semi-detached and bungalow homes, which are part of a RM400mil development called Ferringhi Park.

“Again, the emphasis is on the large built-up areas of the units, which come with five to seven rooms, depending on whether it is a semi-detached or a bungalow unit.

“The semi-detached units are priced at RM1.2mil, and the bungalows at RM1.8mil,” he said.

The semi-detached units have built-up areas of 3,995sq ft, while the bungalows 4,300sq ft.

Teoh said the first batch of 57 three-storey semi-detached and bungalow houses, launched last year, were over 80% sold.

By The Star - StarBiz (by David Tan)

Damansara Heights landscape changing

KUALA LUMPUR: The newly launched high-end residential suites, The Twins, by Panareno Sdn Bhd is setting a new landscape for Damansara Heights, a predominantly landed property residential area.

Eric Ooi, managing director of Knight Frank Malaysia Sdn Bhd, the exclusive marketing agent, said in a statement the demand for property in Damansara Heights was very encouraging. He said The Twins was 50% sold within the first two weeks of its exclusive preview.

Panareno is a joint venture between Malaysia's Lion Group and the real estate investment arm of American International Group Inc, Singapore-based Koh Maju, and Heeton Holdings Ltd.

The Twins features two identical towers built on a 2.17-acre site next to Pusat Bandar Damansara. They offer 318 luxury residential suites.

The standard units range from 766 to 2,078 sq ft, while the size of the penthouse suites is from 2,171 to 5,261 sq ft. It currently commands an average selling price of RM850 per sq ft.

“The Twins is an attractive residential property for local and foreign buyers because of its location and accessibility to PJ and KL,'' Ooi said.

“We haven't begun marketing the project overseas, but we have seen strong enquiries from Singapore, Taiwan and the Middle East buyers who are major investors in Malaysian property,” he said.

Apart from the project’s strategic location, he said, most buyers were impressed with the sleek and modern design of the towers, which are complimented by a practical and well-designed interior layout.

The luxurious facilities of modern living offered include pool facilities, landscaped gardens, three gymnasiums, a multi-functional clubhouse, and state-of-the-art home automation systems.

Panareno expects to complete the luxury high-rise residential project by 2010.

By The Star

Hijauan Kiara in own class

IF you are looking to buy or rent a condominium in Mont' Kiara in Kuala Lumpur, which would you choose?

Well, the newly completed freehold Hijauan Kiara stands out from the rest and makes me dream of owning one after seeing how my kids enjoyed themselves at the condominium's recreational deck one recent Sunday.

Part of the view of Hijauan Kiara in Mont' Kiara.

They were gleefully jumping on a trampoline that has no stand but is embedded on the ground! So if your child bounces out of the trampoline, the risk of falling or tripping is very much reduced. And, should they fall, they will land on thick artificial grass called Dutch “Royal Grass”. The company has spent more than RM200,000 just on the turfing.

Developed by Bukit Kiara Properties Sdn Bhd (BKP), Hijauan Kiara is special indeed!

It boasts of several “firsts”. It is the first and only completed condominium in Mont' Kiara with private lift lobbies. It is also the first condo to have granite pools; the first to have a “Spa Island”, the first to use the German-imported Dedon garden furniture, not to mention the unique trampoline.

There are seven blocks surrounding a large recreational area with steps leading to a tennis court. From the top deck, one can have a sweeping view of several existing condominiums in Mont' Kiara and right below are colourful bougainvilleas, planted on terraces right down to the 25-metre adult pool, children's pool, children's playground, four cosy reading pavilions and a jacuzzi sundeck.

There is also a squash court, viewing deck, hot and cold pool and indoor and outdoor gymnasium.

The layout design reflects the ingenuity and efforts of BKP's managing director N. K. Tong and his team, who have put in many interesting features to ensure that Hijauan Kiara's residents have their own private “oasis” or “green haven”.

For example, there is a meditation garden with two reading pavilions at a corner of the upper deck of the recreational area. At the other corner of this deck is the “Spa Island”, another special feature of Hijauan Kiara.

The fact that Tong himself has young children could partly explain why so much thought had been put into making Hijauan Kiara a paradise for children.

Tong said: “We are always willing to explore and experiment with new ideas but at the same time, we must ensure that all innovative ideas are user friendly and robust.

“We have three areas for people to have their barbecue gatherings or hold parties without bumping into each other. Today, a project such as the Hijauan Kiara would have 420 units instead of 188 units,” he added.

The Hijauan Kiara is the second of BKP's three projects in Mont' Kiara. The first was Aman Kiara development comprising bungalows and duplex condovillas, sited opposite Hijauan Kiara.

The third is the Verve Suites; an 881-unit, four-tower serviced residence featuring fully furnished designer suites in four ID themes.

Unlike Verve Suites' smaller units, those at Hijauan Kiara are spacious with units ranging from 2,000 to 3,732 sq ft and prices from RM782,000 to RM3mil (average RM460 per sq ft. Recent transaction is said to have hit RM620 per sq ft). The biggest penthouse is 5,400 sq ft in size. Maintenance charge is 30 sen per sq ft.

Chief operating officer Vincent Lim said there were only four units left unsold. “Every few months, we have a new theme. The current one is called Going The Extra Mile,” he said, adding that the units would be handed over soon.

By The Star (by S.C. Cheah)

Bandar Raya to launch RM2bil projects this year

BANDAR Raya Development Bhd (BRDB) will launch projects with gross development value (GDV) of RM2bil locally this year while keeping its eyes open for opportunities abroad.

Chief executive officer Datuk Jagan Sabapathy said the developer was actively looking at the Middle East, South-East Asia, particularly Vietnam and Indonesia, as well as India where it hoped to seal at least one deal this year.

Datuk Jagan Sabapathy

“As we are already in Pakistan, looking at India is quite easy. There is also a lot of potential in South-East Asia with the growing population,” he told StarBiz in an interview.

“As for Vietnam, there is a huge amount of money flowing in from Vietnamese living in Australia, Europe and the US. So there is a massive pool of cash to tap,” he added.

BRDB has an integrated development in Lahore, Pakistan.

Launched two years ago, the 325-acre project is Pakistan's first master-planned development featuring bungalows, semi-detached homes, condominiums and retail centre.

“We were hoping to put up the next phase in the first quarter this year but I suspect we will be pushing it back a little to allow things to settle down there,” he said.

All of the firm's future projects, Jagan said, would be high-end premium developments, which typically yield better margins.

“We are a good premium developer with over 40 years experience. We can start doing new things or we can take whatever it is that we do well and continue working on it.

“Instead of diversifying in terms of products and services, we are looking to diversify geographically,” he said.

In the Middle East, BRDB was studying potential deals in Oman and Saudi Arabia, Jagan said.

Locally, it expects to launch two upscale projects in Kenny Hills and Bangsar this year. “Both are currently at the approval stage,” he said.

CapSquare Residences II, an integrated commercial, retail and residential enclave, was expected to be launched in the second quarter 2008, he said.

Jagan said BRDB also targeted a series of launches aimed at introducing exclusive lifestyle living concept in Johor this year.

The company's high-end One Menerung in Bangsar and The Troika projects, which were launched in 2006, were doing well, with about 85% and 75% of the units sold respectively, he said.

BRDB recently expanded its land bank in the Klang Valley with the acquisition of 10.1ha freehold land fronting the Federal Highway in Subang Jaya.

The RM125.9mil purchase is for a mixed development featuring retail, office suites and apartments. The project has a potential GDV of RM1.5bil

“If all is well, this will provide another catalyst for sustainable earnings growth for BRDB post-2009,” OSK Research said.

On plans for real estate investment trust, Jagan said: “There is no reason why we won’t consider it. We will contemplate the matter but it is too early right now.”

By 2010, he said, the company would have more than one million sq ft of Grade A commercial space under its stable.

By The Star (by Yvonne Tan)

Kenanga Wholesale City hub for fashion products

The Kenanga Wholesale City, which is earmarked for completion by early 2010, is poised to be a landmark hub for Kuala Lumpur's wholesale fashion and apparel business.

The complex, located on a 3.2-acre site in Jalan Kenanga off Jalan Loke Yew, will be the wholesale centre for fashion, costume jewellery and leather products.

“Besides raising the profile of Kuala Lumpur's wholesale business, the complex offers a destination for international buyers to buy the country's fashion products in bulk from local wholesalers,” Kenanga Wholesale City Sdn Bhd group chief executive Yee Ia Howe said.

Malaysia's total annual trade in garment and textile totalled some RM2bil. The country also exports over RM4bil worth of designer apparels.

Yee Ia Howe with a model of Kenanga Wholesale City.

Yee said his management would be working with the Malaysia Garments Wholesale Exports and Import Merchants Association to explore business opportunities in Indonesia, Singapore, Thailand, Taiwan and the Philippines.

Kenanga Wholesale City is developed by Central Market Venture Sdn Bhd, which is also managing the Kuala Lumpur Central Market.

The wholesale complex, with total gross floor area of 1.8 million sq ft, will have 790 retail lots of between 300 and 1,000 sq ft.

He said only 49% of the space would be available for sale at RM1,950 to RM3,300 per sq ft, while the remaining 51% would be leased at rental rates between RM10 and RM25 per sq ft.

The project will have an expected gross development value of RM1bil. Construction work will start in March and completion is targeted within two years.

“The complex will meet the dire need for additional retail space in the Kenanga area, which has grown into a wholesale fashion hub in the past 20 years.

Currently, there are 350 business operators in the surrounding three-storey shop lots on about 35 acres.

“We are capitalizing on this demand and we hope to offer a modern and comfortable alternative to the traditional shop lots in the area,” Yee said.

Buyers of the retail space will be offered an attractive leaseback option. Those who lease their lots to the company will be guaranteed an 8% annual rate of return for the first three years with option to extend by another two years.

“We are confident the complex will be fully tenanted as we have a growing list of potential tenants registered with us,” Yee said.

According to him, the company has given up saleable space to ensure there will be enough escalators, service lifts and comfortable walkways.

“We will also bring in necessary service providers such as courier companies, forwarding agents and ATM outlets to make it convenient for business owners.”

The top level of the complex will house convention facilities for events such as trade and fashion shows.

By locating the wholesale complex in the Kenanga area, Yee said the surrounding infrastructure would also benefit, including in better landscaping and widening of adjacent roads.

“We are optimistic that the local council will follow suit by upgrading neighbouring facilities as we will be replacing some rundown buildings with Kenanga Wholesale City.”

With more than 1,800 car parks and loading docks for lorries in the complex, the project would also ease the parking problem in Jalan Kenanga, Yee said, adding that traffic flow in the area should also improve.

By The Star

Kha Seng to ride on niche retail sector

KHA SENG Corp Sdn Bhd is keen to tap into the growing niche retail developments, including lifestyle shopping malls, concept stores and wholesale complexes, especially in the garment and fashion trade in the Klang Valley.

The company has several retail projects in the planning stages, which will commence in a few months.

Managing director Bernard Bong said Kha Seng would concentrate its resources on the Klang Valley's niche retail, wholesale and commercial projects in the next two years.

The Jalan Kasturi pedestrian area beside Kuala Lumpur Central Market will be upgraded into a covered street mall.

“The retail market in Kuala Lumpur has grown tremendously in a very short time and we believe there is a need for a breather before the market can absorb more sizeable format malls.

“However, there is still an inadequate supply of commercial spaces that cater to specific needs and the community in a particular locality.

“Our retail projects will target this niche market and we aim to do that with our latest project, Kenanga Wholesale City,” Bong told StarBiz.

Kha Seng, a garment manufacturer and wholesaler, diversified into real estate investment 15 years ago and eager to “ride the waves” of the growing commercial property market.

Within three years of taking over the management of Kuala Lumpur Central Market, it has successfully turned around the building into a vibrant culture, arts and craft centre.

In 2004, the company paid RM38mil for the building's remaining 60 years lease in an open tender by Pengurusan Danaharta Nasional Bhd.

Central Market has 60,000 sq ft of net lettable space housing 250 shop lots, including 30 to 50 kiosks, that sell a variety of art, handicrafts, batik, souvenirs and gifts.

To encourage the right tenants to establish business in Central Market, the company has maintained rental rates at between RM15 and RM40 per sq ft. “The rates will be up for review when the time is right,” Bong said.

His decision to expand in the retail real estate sector is largely due to Central Market's immense success.

Expressing his satisfaction in the company's investment, he said Kha Seng was on its way to recoup its capital and turn in profits within the next 18 months.

“There is probably no other centres nationwide that is similar to Central Market, given its one of a kind combination of location, culture, history and shopping.

“However, as a retail-focused company, we will consider investing in other potential projects if the right opportunity comes along,” Bong said.

On plans to expand the Central Market, he said Kha Seng had submitted plans for development of the riverside into a historical walk and alfresco dining outlets, while the Jalan Kasturi pedestrian area would be converted into a covered mall with decorated kiosks and for street performances.

“Once the finer details are ironed out, we will start work on the next phase of upgrading,” Bong added.

On future projects, he said Kha Seng had paid RM78mil to purchase the UE3 shopping centre in Cheras from the project’s receiver. The building was formerly own by the MBf group.

Bong said the company would spend RM100mil to refurbish and reposition the shopping complex into a lifestyle mall with specialty stores for the middle-income market.

The refurbished complex, with net lettable space of 600,000 sq ft, will be opened in the first half of 2009.

A 360-room business class hotel will also be constructed on the adjoining land.

Meanwhile, the Kenanga Wholesale City along Jalan Kenanga, off Loke Yew, will be an integrated commercial complex for fashion apparel wholesale and retail trade.

Kenanga Wholesale City Sdn Bhd bought a 3.1-acre plot from Tenaga Nasional Bhd in the middle of 2007 and the RM1bil project is schedule for completion early 2010.

Bong, also managing director of Kenanga Wholesale City, is looking at building similar concept projects for other wholesale businesses in the surrounding area or in other parts of Kuala Lumpur.

On Kha Seng's earlier plans for the redevelopment of the Klang bus station, he said it had been replaced with another retail project on a nearby land. “We are in negotiation with the landowner,” he said.

By The Star (by Angie Ng)

PJ Development to expand overseas

PJ DEVELOPMENT Holdings Bhd (PJD) plans to build sizeable properties in Vietnam and Thailand with reputable local partners to further expand its real-estate operations.

"We have a few plans to grow but we will do it carefully to seize the best opportunities. This will be the first time we are going overseas to build properties," chief operating officer Lim Lian Seng told Business Times in an interview.

PJD will also launch new properties in Kuala Lumpur and Johor in the first half of the year, worth RM810 million, Lim said.

The first project it is planning is Swiss-Garden Residences along Jalan Galloway in Kuala Lumpur.

The project, to be launched in April, comprises two blocks of serviced apartments with 478 units.

The units, with built-up areas of 550 to 2,700 sq ft each, have yet to be priced.

Another project to be launched in April is Duta Kingsbury @Sri Hartamas, which consists of 64 units of super-link homes and 203 units of condominiums.

The built-up area for the super-link homes ranges from 3,482 to 7,806 sq ft, packaged in different designs.

In Pulai, Johor, PJD will launch Mont' Callista in May, a gated and guarded community on a (13ha site.

It will include 192 units of three-storey semi-detached houses with built-up area of 3,009 to 4,035 sq ft.

"We expect sales to be encouraging based on previous records, when more than half of the properties at our existing developments were snapped up within a few months of its launch," Lim said.

Last year, PJD launched Putri Hartamas, a new component at its current township in Johor, dubbed Taman Putri Kulai, that is being developed for RM1 billion.

Putri Hartamas comprises 210 units of terrace, bungalow and semi-detached homes. Some 30 per cent of the homes were snapped up within the first two months of its launch in November.

Another project, Impian Meridian in Subang Jaya, comprising three blocks of residential and commercial towers with 569 units launched in early 2007, is 80 per cent sold.

"We are scouting for more land in Kuala Lumpur, Kuantan, Johor Baru and Penang for future launches. This is despite having 1,500 acres (608ha) of undeveloped land in these areas, and in Damai Laut," Lim said.

The property division contributes 50 to 60 per cent to PJD's revenue.

For the 12 months to June 2007, PJD posted a net profit of RM42.4 million and revenue of RM549.4 million.

By New Straits Times (by Sharen Kaur)

Aeon still weighing REIT options

RETAILER Aeon Co (M) Bhd is in no rush to set up its planned real estate investment trust (REIT), comprising seven properties valued at about RM700 million, as it views the local REIT market to be still at its infancy.

"We are still watching and evaluating the industry. We are doing our own study on the REIT," an official from Aeon who declined to be named said.

He added that Aeon, which operates the Jusco department store-cum-supermarket chain, felt that since the Malaysian REIT industry was only about three years old, his company preferred to take the wait-and-see stand.

"We feel the REIT industry is still new," he said.

On whether Aeon would consider listing the trust vehicle elsewhere, the official said: "We will consider all options ... but at this stage it is still too early to say."

Last April, chairman Datuk Abdullah Mohd Yusof said that it was looking at the possibility of spinning a REIT because of the number of properties it has - all of which merit some attention.

Four of the properties are in the Klang Valley, namely, Alpha Angle Shopping Centre in Kuala Lumpur, Jusco Metro Prima Shopping Centre in Kepong, Aeon Cheras Selatan Shopping Centre and Bukit Raja Shopping Centre in Klang.

Two outlets are in Johor - Jusco Taman University Shopping Centre and Aeon Tebrau City Shopping Centre.

The seventh outlet is Jusco Melaka Shopping Centre.

Aeon has a total of 18 Jusco outlets throughout Peninsular Malaysia. It also runs the Max Value supermarket chain, the Jusco Home Centre and Aeon Wellness health and beauty store.

The company has announced plans to open stores in Seberang Prai, Penang, and Ampang in Kuala Lumpur this year.

By New Straits Times (by Vasantha Ganesan)

Committed to saving rivers

MRCB Environment specialises in rehabilitation and conservation

MRCB Environment Sdn Bhd's core activity as an environmental solutions provider has enabled the company to be very involved with the local community and its surroundings.

The company, established in 2003, has undertaken several projects to conserve the environment. It specialises in the rehabilitation and conservation of beaches and rivers in the country.

The idea to set up MRCB Environment, which is a 55% owned subsidiary of Malaysian Resources Corp Bhd (MRCB), first surfaced in 2000, said its director Dr Shaharizuan Shafiei.

Dr Shaharizuan Shafiei showing the Kuala Sungai Pahang river mouth area where MRCB Environment will build a breakwater system.

MRCB is traditionally well known in the “brick-and-mortar” businesses such as construction of roads, buildings, highways and power generation plant.

Shaharizuan, who is also vice-president and infrastructure and environment division head of MRCB, said there was concern that certain businesses of MRCB might be on the decline at the beginning of 2000.

“We decided to go into an area that, while we generated income, we would also be doing something for the public which makes us feel good. So, what is better than working on projects related to the environment?”

At the same time, environmental awareness among Malaysians was just picking up, but no one really spoke about beach conservation and restoration, river rehabilitation and maintenance of the water quality.

In a way, MRCB saw the potential in its environmental activities not only as a business venture but also something in line with its corporate social responsibility (CSR) initiatives to promote eco-friendly environments and encourage domestic tourism.

MRCB Environment's pilot project was the Teluk Cempedak beach rehabilitation in Pahang, which was awarded by the Department of Irrigation and Drainage (DID) in 2003. The beach was suffering from erosion due to loss of sand.

Shaharizuan said the company employed the pressure equalisation module (PEM) system, combined with sand nourishment, to rehabilitate the coastline of Teluk Cempedak.

“The water table will be reduced, hence making the sand on the beach drier. Erosion at beaches happens because the sand is wet and saturated,” he explained.

PEM pipes were installed under the seabed to assist the pressure from the ground water level and stimulate sand sedimentation. The beach was sand nourished to achieve a wider beach profile, after which additional PEM pipes were installed under the new beach to reduce erosion.

The project was completed in 2004 and the sand nourishment had increased the beachfront of Teluk Cempedak by 80m to 100m.

Shaharizuan said after that, the company was given a small contract by DID to maintain the beach for three years.

MRCB Environment also deployed a similar solution when it received an interim award from DID in 2005 to conserve 3km of beach at Teluk Tekek, Tioman Island.

The project involved construction of a sea wall, which together with the PEM system, was expected to minimise erosion and enhance its recreational value for tourism-related activities.

Besides that, a study was initiated to look into the pollution in various rivers in Teluk Tekek, drainage problems and mooring facilities.

The company also carried out an awareness programme to protect the rivers from further pollution, said Shaharizuan.

“Besides completing the project, the key thing is to create awareness among the village folk to not discharge kitchen effluents directly into the river. It ought to be treated first.

“DID introduced the grease trap, also known as simpack, at selected villages, and they were installed in food outlets on the island,” he explained.

Shaharizuan said the education provided was not only on the installation of the grease trap but proper maintenance.

“We continue to visit the owners of food outlets and explain to them that the Government has spent millions to restore the beach and they can play their role by using the grease traps provided by the local authority,” he added.

Another project undertaken by MRCB Environment, which also gave it the opportunity to improve the lives of a local community, was the protection of Kuala Sungai Pahang river mouth.

The company received an interim award worth about RM60mil in mid-2006 to improve the river mouth on a design and build basis.

The interim works included immediate dredging and design of breakwater at the river mouth.

Once completed, the project will provide safer navigation channels for fishermen surrounding the area, especially during the monsoon season, and mitigate flooding in the area.

Shaharizuan said that with the implementation of the breakwater system as well as dike retention pond and pump in the towns such as Pekan located further up the river, losses due to flood could be reduced by 30%.

MRCB Environment has received an interim letter of award to rehabilitate Sungai Prai, Penang, and a letter of intent to rehabilitate Sungai Kuantan, Pahang. It had also submitted proposals for work on three rivers in Johor and Sungai Juru, Penang.

The company worked with various parties, including foreign universities and local consultants, on some of its projects.

Shaharizuan lamented the lack of environmental engineers in the country.

On plans to enlarge the pool of talent, he said: “It is quite difficult, but our key strength is our people. We source them from everywhere; we take in ex-DID staff and employ civil engineer who are keen on this area and train them. We hope to churn out very good environmental engineers in the future.”

MRCB Environment's revenue contribution to MRCB is not significant at present, but the potential in this area of work is enormous. Shaharizuan said there was a lot of work to be done in Malaysia.

“If we concentrate here alone, it should be more than enough to sustain us for many years,” he added.

On the possibility of seeking out projects abroad, Shaharizuan said: “We are an expert in Malaysia but there are a lot of companies already doing this overseas. If we go to other countries, we have to be competitive in terms of pricing.”

The company also plans to venture into other projects related to the environment such as garbage disposal, mangrove restoration and erosion control.

By The Star (by Chan Ching Thut)

Brisk sales at Nam Fatt’s Gallery@U-Thant

An artist's impression of Gallery@U-Thant

KUALA LUMPUR: Nam Fatt Corp Bhd has sold over 80% of the condominium units of the recently launched Gallery@U-Thant.

In a statement, it said Gallery@U-Thant, which is located in the upscale embassy residential area, was the company's maiden foray into the super high-end residential market.

Gallery is a niche 50-unit development with a gross development value of over RM200mil. Most of the units were sold within 90 days of the sales launch, largely through private invitation in collaboration with Colliers International Property Consultants, it said.

“We have been very pleasantly surprised by the tremendous market confidence in the Nam Fatt name by locals as well as expatriates. For a development in the price range of Gallery, these numbers are unheard of,” said property division general manager Erric Tan.

“We are especially appreciative of Trans Penang Inn Sdn Bhd, our strategic land owner partner, and our consultants, including Colliers International for their assistance and effort in developing new marketing, branding and public relations strategies,” he said.

Tan said the buyers were a mix of local elite and professional expatriates.

“These are not the typical buyers we marketed to in the past. This change will undoubtedly have a significant impact on our future marketing, branding and positioning endeavours,” he said.

By The Star

Hektar REIT pays higher dividends

KUALA LUMPUR: Hektar Real Estate Investment Trust has announced that the dividend per unit for the 13-month period ended Dec 31, 2007 would be 10.71 sen, 11.2% higher than it had forecast in its prospectus.

In a statement, it said gross revenue for the year reached RM78.3mil, which was 5% above forecast and net income (realised) stood at RM36.7mil.

Hektar REIT, managed by Hektar Asset Management Sdn Bhd, reported net income per unit of 11.46 sen, which was 19% higher than forecast when the REIT was launched in December 2006.

“We are happy with our full year results for 2007,” said chief executive officer Datuk Jaafar Abdul Hamid.

“Our net income exceeded our budget forecast, allowing us to distribute to our investors a larger dividend than expected, about 11.2% higher than what we promised.”

Hektar REIT's shopping mall portfolio continued to hold steady with almost full occupancy of 96.9%, of which Subang Parade is 99.9% occupied and Mahktota Parade, 93.9% occupied.

Traffic for Subang Parade increased to 7.8 million visits in 2007, up 32.6% since its refurbishment in 2006 while Mahkota Parade's traffic edged up 2.1% to 8.8 million visits in 2007.

By The Star