More to be done to improve infrastructure

The success of the Kuala Lumpur City Centre (KLCC) enclave has raised the profile of Kuala Lumpur on the world map, but much still needs to be done for it to reach the status of other world-class cities such as New York, London and Singapore.

The plus features of the KLCC include the integrated nature of the development comprising the Kuala Lumpur Convention Centre, three shopping complexes (Suria KLCC, Pavilion KL and Avenue K), a number of five-star hotels, as well as food and beverage outlets.

According to Henry Butcher Marketing Sdn Bhd chief operating officer Tang Chee Meng, world-class cities have a wide range of social amenities and facilities such as shopping, healthcare, public recreational parks, places of worship and schools.

More green lung should be provided in the KLCC area to turn the area into a green enclave.

The infrastructure includes an efficient public transportation system to encourage residents to use public transport and help alleviate traffic congestion in the city.

Tang Chee Meng

“The local authorities should adopt a multi-pronged approach to tackle the severe traffic congestion problem by improving the connectivity of the three mass transit systems - STAR, PUTRA and KL Monorail – for the commuters' benefit,” Tang added.

Hall Chadwick Asia Sdn Bhd chairman Kumar Tharmalingam said that unlike Singapore and Hong Kong, which have well maintained pedestrian walkways and underground linkages, the facilities in the KLCC area were not well maintained.

To encourage people to walk instead of driving, Kumar said, better facilities should be provided for pedestrians.

“Like other major cities, traffic congestion and parking are posing a serious problem in the inner city, especially during peak hours,” PPC International Sdn Bhd executive director Thiruselvam Arumugam said.

To overcome this, he suggested the implementation of a surcharge or pricing system to limit the number of single-occupant vehicles entering the Golden Triangle and inner city area, especially during peak hours.

Reapfield Properties Sdn Bhd president David Ong said the provision of more dedicated lanes for public transport such as buses and taxis in the area would help, along with policies to curtail passenger cars from entering certain congested roads.

Meanwhile, Zerin Properties chief executive officer Previndran Singhe said more parking facilities were needed in the city centre to support the rapid growth of the city.

“There should also be more taxis, shuttle buses and light rail transit plying the inner city routes to alleviate the severe shortage of parking around the city centre.

“In addition, more green lung should be provided in the KLCC area to turn the area into a green enclave,” he said.

By The Star

Casa Del Rio breaks ground in Malacca

Boutique hotel developer Casa del Rio (M) Sdn Bhd (CdR) jump-started its foray into Malacca last week by breaking ground for its latest project featuring a boutique hotel and serviced apartment.

Aptly dubbed Casa del Rio Melaka, which translates into “Malacca’s home by the river”, the RM85 million venture will take shape on 3.2 acres beside the city’s historic river and be part of the state’s RM320 million Malacca River beautification plan.

The project comprising a 56-room boutique hotel and 32 serviced apartments is expected to welcome guests by early November 2009.

CdR group managing director Tan Sri Syed Yusof Syed Nasir said the essence of Peranakan architecture, with “charming courtyards” as well as the beauty of the Malacca sultanate heritage, will be evident in the architectural design.

Casa del Rio Melaka will also offer alfresco dining facilities overlooking the river, a fullservice spa, fitness centre, state-of-the-art meeting rooms and an infinity-edge swimming pool.

Residents of the serviced apartments will be able to enjoy all the hotel’s facilities, in addition to resident-only amenities such as a private garden, elevated pool deck and large private balconies offering panoramic views of the city and coastline.

“The project will set Malacca as an international destination that offers world-class accommodation and residential living to domestic and international markets,” said Syed Yusof at the project’s groundbreaking ceremony recently.

The state government forecasts 6.8 million tourist arrivals in Malacca this year, a 10 per cent increase over last year’s figure.

When completed, Syed Yusof said the hotel and serviced apartments will be managed and operated by CdR.

In addition to the company’s Casa del Mar hotel in Langkawi, Syed Yusof also owns the Concorde hotels in Kuala Lumpur and Shah Alam, Concorde Inn at the KL International Airport and the 18-room Lakehouse in Cameron Highlands.

Also under his belt are speciality restaurants and entertainment chains such as Genki Sushi, Saloma Theatre Restaurant, Hard Rock Café and Planet Hollywood.

By New Straits Times (by Chris Prasad)

Penang agency to build RM100m office tower

PENANG Development Corp (PDC), the state's development arm, plans to build a RM100 million office tower in Bayan Mutiara on the island, which is set to be its flagship commercial building.

It is also in talks with Citigroup to make the US bank the anchor tenant of the 16-storey building. PDC is also wooing other Fortune 500 companies to open their offices there.

"PDC has made its presentations and submitted proposals to Citigroup, and the latter is said to be deliberating the matter at its head office in the US.

"The corporation is also eyeing other top global names to invest there," an industry source said.

Bayan Mutiara is an integrated project on 40ha of seafront land.

It is also located within the Penang Multimedia Super Corridor Cybercity.

The project will comprise high-end and affordable homes, schools, mosque and government administrative complex, including the state legislative assembly building.

The project will encompass four precincts. The state administrative complex will also house elected representatives' offices and the office of the Chief Minister.

Sources said the new office complex will take up 1.2ha. PDC intends to build and then rent the offices to software companies and other international firms.

Last June, PDC sold 0.82ha to the Inland Revenue Board to build a 16-storey corporate tower.

The Marine Police Department has bought 4ha.

The corporation, through its property arm PDC Properties Sdn Bhd, has started building landed residential properties and selling them.

It will launch its condominium project soon.

By New Straits Times (by Marina Emmanuel)

Steps to cushion US slowdown

The Government is pump-priming the economy aggressively via the 9MP

There's a saying that when America sneezes, the world catches a cold.

And the United States is about to have another big sneeze that could lead to a slowdown or even recession that ultimately would affect the rest of the world, including Malaysia.

Given the bleak scenario in the US, it would be wise for Malaysia to take some pre-emptive measures to cushion the impact.

The Sabah Development Corridor launched by Prime Minister Datuk Seri Abdullah Ahmad Badawi is expected to be a big boost to the economy.

Thankfully, the Malaysian government is cognisant of the fact that the country needs to be economically strong on the domestic front in the event of an acute and protracted recession in the US.

The rollout of a slew of projects under the Ninth Malaysia Plan (9MP), especially the various growth corridors, will support and stimulate the economy.

In fact, many economists believe the bulk of the projects, especially those related to infrastructure, will be dished out this year.

Moreover, many local companies have learnt from the Asian financial crisis of 1997 not to rely solely on local projects.

Those that survived the crisis have now expanded their businesses beyond local shores to China, Vietnam, India, and the Middle East.

A local economist said that if the US economy fell, there would be “casualties” as some countries would be more affected than the others, depending on their economic resilience.

“Some economies around the world should brace themselves for a rough and painful ride,” he said, adding that Malaysia was relatively fortunate as the country was a net exporter of oil and was buoyed by good crude palm oil prices. It has a proactive government that is pump-priming the economy aggressively via the 9MP.

Bank Negara governor Tan Sri Dr Zeti Akhtar Aziz said that taking into account the economic situation in the US, Malaysia's growth rate was still expected to be 4% to 6% this year.

“It's still decent, given the endless series of bad news coming from the US and other countries like Britain,” she said.

Zeti said Malaysia's economy was still on a growth path despite operating in a challenging environment. This should continue this year, as domestic demand remains strong, fuelled by strong inter-linkages with other Asian economies that were also doing well.

However, the Malaysian Institute of Economic Research (MIER) has a lower forecast of 5.4% growth for the country this year based on the assumption that the US recession would last only two quarters.

A recent MIER report said: “If the recession deepens and protracts longer than two quarters, then the forecast for Malaysian growth would have to be revised down to 4% to 5%.”

Most economists believe a recession in the US is inevitable this year.

However, many say it would be a mild and short one and that Malaysia was likely to be less impacted compared with other countries in the region because of its stronger economic resilience.

Still, not everything would be smooth sailing for Malaysia.

Inflation or rising cost of living is a major concern that the Government is grappling with, and a lot hinges on the micro and macro-policies applied by the authorities and whether the 9MP projects are implemented on time.

Another issue is the country's dependence on foreign direct investment (FDI) to spur growth. It's no big secret that in recent years Malaysia's FDIs have been stagnant or falling.

Since the Asian financial crisis, the changes in Malaysia’s FDI stock have been worrying, especially when compared with its Asian counterparts. Singapore and Vietnam have fared remarkably well in terms of FDI growth.

The falling FDIs are a distressing signal, considering that Malaysia provides attractive incentives to foreign investors.

The substantial fall in Malaysia's FDIs has to be addressed quickly by the authorities if the country wants a bigger slice of the FDIs.

By The Star (by Danny Yap)

SM Land set to launch NZX Commercial Centre

The second phase of NZX is set for launching next month

SM Land Sdn Bhd is launching the second phase of its freehold NZX Commercial Centre project in Ara Damansara next month. This will comprise 34 units of 3-storey semidee shop lots, 24 units of 5-storey shop lots and a 150-room boutique hotel. Prices start at RM2.5 million onwards for the units with lot sizes of 30ft by 70ft to 25ft by 85ft.

SM Land’s director, Eric Ong, said the development has been receiving a tremendous response since it was opened to the public last month. “We are averaging about 3,000 to 4,000 visitors a day, with more during the weekends.

We are hoping to continue drawing in the crowd by organising yearround events there,” he told PropertyPlus.

To date, all 186 units of 3- and 5-storey shop offices have been sold and handed over to purchasers.

Prices range from RM1.7 million to RM2.5 million for the units with built-ups of between 6,000 sq ft to 9,000 sq ft.

Within the project is Niu Ze Xui, an open-concept pedestrian mall featuring Malaysia’s largest covered boulevard and first-ever climate control system. The 300 kiosks available there have also been tenanted out for rental rates of RM1,500 to RM1,800 per month.

Ong said the second phase is expected to do well, similar to the units in the first phase that were quickly taken up after they were launched. About 20% of the secondphase units have been taken up so far. “The units in the development have a low density and come with an al-fresco design,” he said. It has a gross development value (GDV) of RM200 million and is targeted for completion by 2011.

SM Land is the development arm of Dragon Group, whose core businesses include manufacturing optical media. Their previous developments include the revival of Section 14’s Digital Mall and Pertama Residencies, a condominium project in Cheras.

The developer recently completed its other ongoing project, USJ Nineteen, which is scheduled for launch by the forth quarter this year. It is located on a 4.4-acre tract in UEP Subang Jaya and consists of a 3-storey shopping mall with a net lettable area of 240,000 sq ft as well as 1,064 units of serviced apartments.

On the group’s immediate future projects, Ong said it would include a high-end residential development comprising 70 units of semi-dees in Serdang, as well as an integrated commercial project in Bukit Jalil.

“The project in Bukit Jalil is exciting for the group as it will have a GDV of about RM1 billion. It will consist of a hotel, retail outlets, a shopping complex, offices and serviced suites,” he said, adding that the group will be focusing on more niche projects in the future.

It has an undeveloped landbank in prime locations in the Klang Valley and Penang.

SM Land also has a track record of successfully reviving abandoned or stalled projects to realise their full potential. These developments include Digital Mall, NZX, and USJ Nineteen. “We might be embarking on another upmarket abandoned project located within the Golden Triangle. We are currently in negotiations and hope to finalise the deal by this year,” he said.

By theSun - PropertyPlus (by Yap Yew Jin)

UEM World revamps

Firm to be pure property player after listing UEM Land, spinning off other units



UEM World Bhd plans to become a pure property company by spinning off its cement and drug-making businesses in a sale to its shareholders.

UEM Land Sdn Bhd, its property unit that's overseeing Malaysia's biggest property project in Johor, will be listed while UEM World will be de-listed under its latest restructuring exercise.

"The exercise is carried out to provide the platform for further growth of our business. UEM Land in recent periods has increasingly become the driver for the share price of UEM World," UEM World managing director Datuk Ahmad Pardas Senin said in a media briefing in Kuala Lumpur yesterday.

UEM Group Bhd, which holds 52 per cent of UEM World, will spend roughly RM2 billion to RM3 billion of its internal funds for the restructuring exercise.

He said many investors in UEM World were mainly interested in UEM Land and this exercise would allow them to participate in a pure property company.

UEM Group can then focus its efforts primarily as developer and owner of infrastructure assets, specifically around PLUS and its expertise in project management and engineering and construction.

At the moment, UEM World has three components under its umbrella which include four listed subsidiaries, UEM Land and the remaining unlisted businesses.

In the first phase, UEM World will sell its entire stake in UEM Builders Bhd, Opus Group Bhd, Pharmaniaga Bhd and Cement Industries Malaysia Bhd (CIMA).

This will be carried out through a restricted offer for sale (ROS) to shareholders of UEM World at a 15 per cent premium from a one-month weighted average market price.

"UEM Group will buy all the shares that are not acquired by the shareholders under this proposal to ensure that it will be a success," said Ahmad Pardas.

Under the second step, a shareholder with 100 UEM World shares will receive 125 UEM Land shares.

To participate in the ROS, a shareholder will have to pay RM120.26 to receive a basket of 35 shares in UEM Builders, 21 shares in Opus, five shares in Pharmaniaga and five shares in CIMA.

UEM World will also sell off all its unlisted businesses and undertakings to UEM Group for RM13.9 million.

As UEM World turns into a shell company, cash realised under the ROS and disposal of unlisted businesses exercise will be returned to shareholders of UEM World.

This means that a shareholder with 100 UEM World shares will get RM125.82 cash under a capital repayment exercise.

Currently, UEM Land shareholders are UEM World at 71.5 per cent and UEM Group at 28.5 per cent. After the exercise, UEM Group will own 65.7 per cent of the newly listed property unit with the remaining stake owned by other shareholders of UEM World.

The corporate restructuring is expected to be completed in September.

By New Straits Times (by Adeline Paul Raj and Jeeva Arulampalam)

Revamp plan to drive UEM World

Analysts say it will make group more focused and raise unit UEM Land profile

UEM World Bhd's proposed restructuring to better position the group for further growth has received positive response from analysts.

“The exercise will make UEM World more focused and raise the profile and financial capability of UEM Land Sdn Bhd,” an analyst said, adding that the exercise would create a strong and full-fledged property development company.

UEM World managing director Datuk Ahmad Pardas Senin told a briefing yesterday the exercise would provide a platform for further growth in the company's business.

“It is designed to give shareholders of UEM World direct participation in UEM Land, which in recent periods has increasingly become the driver for the share price of UEM World,” he said.

Datuk Ahmad Pardas Senin at the media briefing.

UEM World has seen its share price more than double from RM1.78 in the beginning of 2007 to RM4.12 before its suspension from trading on Tuesday.

An analyst at a local brokerage said the proposed consolidation of UEM World would make UEM Land a group more focused on the property business.

“It will be able to leverage on and take advantage of its huge land ownership in the Iskandar Development Region (IDR),” he said, adding that local and foreign investors had bought into UEM World for the company's long-term viability.

Under the proposed restructuring, existing shareholders of UEM World will receive what they effectively own in UEM World. They would also have to pay a 15% premium on the market value of the listed subsidiaries, should they choose to subscribe for the non-renounceable restricted offer for sale (ROS).

Assuming that a shareholder who owns 100 UEM World shares accepts the ROS, he would have to pay RM120.26 for a basket of 35 UEM Builders Bhd shares, 21 Opus International Group Bhd shares, and five shares each in Pharmaniaga Bhd and Cement Industries of Malaysia Bhd. On top of that, the shareholder would also receive RM124.82 cash.

If the same shareholder does not accept the ROS, he will receive 125 shares in UEM Land and RM124.82 in cash.

Analysts said both options would benefit shareholders, as they would be offered a capital repayment of RM124.82 per 100 UEM World shares.

“The exercise will not put shareholders at a disadvantage. Apart from the capital repayment, they would also receive dividend in specie as well as capital gains from the disposal,” an analyst said.

“The exercise will eventually turn the company into a pure property play. The current property market is very lucrative,” he added.

Analysts say Bandar Nusajaya, a key component of IDR and UEM World's flagship project, would enjoy higher value as the company launches more properties there in the coming years.

UEM World, which posted a year-on-year net profit growth of 200% for the third quarter ended Sept 31 to RM37.59mil, has a construction order book that continues to excite investors. Analysts said the company would continue to do well, largely due to its development in the IDR.

By The Star (News Analysis by Leong Hung Yee)

Analysts mixed on UEM World restructuring

Most like the direct exposure to group's biggest asset

ANALYSTS were mixed in their opinions as to whether the proposed restructuring of UEM World Bhd would be good for all its shareholders.

Most liked the fact that the deal allows investors to have direct exposure to the group's biggest asset, the soon-to-be-listed UEM Land, master developer of the Iskandar Development Region in Johor.

UEM Land is 71.5 per cent owned by UEM World.

"It's changing from a conglomerate to a pure-play property development company. It's good for shareholders to have that focus," said an analyst from Hwang-DBS Vickers Research.

UEM Land is, after all, the prime beneficiary of Iskandar, he pointed out. As it stands now, investors have to buy UEM World to have exposure to UEM Land.

"If they believe in the prospects of UEM Land, which I think has very big potential, they should go for the deal," he added.

Some analysts, however, felt that the 15 per cent premium on the restricted offer for sale (ROS) to UEM World shareholders - which allows them to participate directly in the company's four listed subsidiaries - is nothing to be terribly excited about.

(It is a 15 per cent premium to the one-month volume weighted average market price of the companies' shares up to February 12.)

Jon Oh of JPMorgan, for one, said he was neutral on the deal as it was minimal value-enhancing.

The deal seems to be nothing more than just selling off the UEM World assets at close to market value and hiving off UEM Land, he felt.

"This just ring-fences the Iskandar investments away from the other businesses. They are still banking on the story of asset reflation and on Iskandar being a success," he said.

The premium on the ROS is "OK, but not spectacular", he added.

Meanwhile, analysts noted that there was a possibility of some of the listed subsidiaries, like Pharmaniaga Bhd, being taken private.

UEM Group owns 51.9 per cent of UEM World, which in turn owns 72.5 per cent of Pharmaniaga today.

UEM Group will thus have to make a mandatory takeover offer for the remaining shares in Pharmaniaga it does not own once the ROS becomes unconditional.

"They can privatise Pharmaniaga, or if they want to keep it listed, they may place out the shares," an analyst noted.

Analysts were told at a briefing by UEM World officials yesterday that the group wants to keep the four subsidiaries listed.

By New Straits Times (by Adeline Paul Raj)

UEM Land listing in September

Restructuring exercise worth RM2bil to RM3bil

KUALA LUMPUR: UEM Land Sdn Bhd, the property development subsidiary of UEM Group Bhd, will be listed in September in a restructuring exercise worth between RM2bil and RM3bil, while UEM World Bhd, the listed investment holding company of the group, will eventually be delisted.

UEM Group has a 51.9% stake in UEM World and 28.5% stake in UEM Land.

The restructuring exercise would involve the non-renounceable restricted offer for sale (ROS) of UEM World’s shares in four listed subsidiaries to its (UEM World’s) shareholders. The company’s stakes in the four listed subsidiaries are Pharmaniaga Bhd (72.5%), Opus Group Bhd (62.2%), UEM Builders Bhd (51.7%) and Cement Industries of Malaysia Bhd (CIMA, 50.7%).

From left: UEM Group Bhd senior director of corporate development Raja Azmi Raja Nazuddin, Datuk Ahmad Pardas Senin and UEM Land Sdn Bhd managing director Wan Abdullah Wan Ibrahim at the media briefing

The ROS price would be at a 15% premium to the one-month volume weighted average market price of the shares of the listed subsidiaries up to Feb 12 and entitled shareholders would be able to acquire the shares in proportion to their shareholding in UEM World on a rights basis.

UEM Group would also undertake to acquire all the shares not acquired under the ROS besides acquiring UEM World’s other remaining businesses and undertakings for about RM14mil.

UEM World, which has a 71.5% stake in UEM Land, would then distribute its equity interests in the company to its shareholders via a dividend in specie (DIS) followed by the listing of UEM Land by way of a new company. The transfer of UEM World’s stake in UEM Land to UEM Group would result in the latter having a 65.7% stake in the company.

UEM World would also undertake a capital repayment exercise to return all the cash to its shareholders following the proposed ROS and proposed DIS.

The company is also offering two options for shareholders. For those who opt for UEM Land shares, the exercise will see them getting 125 UEM Land shares plus a capital repayment of RM125.82 for every 100 UEM World shares. For those who wish to participate in the ROS, they will have to pay RM120.26 to receive a basket of 35 shares in UEM Builders, 21 shares in Opus Group, five shares in Pharmaniaga and five shares in CIMA and will also receive the capital repayment sum.

UEM Land’s issued and paid-up share capital as at Jan 31 was RM1.09bil, comprising 2.18 billion shares, while UEM World had an issued and paid-up capital of RM2.1bil.

UEM World managing director Datuk Ahmad Pardas Senin said the exercise would provide a platform for further growth in the company’s business.

“It is designed to give shareholders of UEM World direct participation in UEM Land, which in recent periods has increasingly become the driver for the share price of UEM World,” he told a media briefing yesterday.

Ahmad Pardas added that the exercise would also enhance the transparency of valuation and unlock value in UEM Land.

“For those who opt for the ROS, this is an opportunity to participate directly in the listed subsidiaries and, at the same time, to realise value from monetisation of the listed subsidiaries at a premium to the market value,” he said.

He added that the exercise was expected to be complete in September if things were to go according to plan.

By The Star (by Fintan Ng)

Big jump in revenue from sales at property unit

KUALA LUMPUR: UEM Land Sdn Bhd, which will be listed in September should the restructuring exercise it will undergo soon pass through smoothly, has a lot of work in hand.

It is the master developer of the 24,000-acre Bandar Nusajaya located in Gelang Patah in southwestern Johor.

Bandar Nusajaya is also in the heart of the Iskandar Development Region (IDR) and UEM Land is currently developing 11,000 acres of the land.

According to UEM Land managing director Wan Abdullah Wan Ibrahim at a media briefing yesterday, the company has seen substantial improvement in revenue from sales of residential units, industrial plots and sale of land to other developers for co-development purposes.

“Our growth strategy is to create a nucleus for the IDR via seven catalyst development projects.

“They comprise a resort, Puteri Habour, Johor State New Administration Centre, Southern Industrial and Logistics Clusters, EduCity, MediCity and Nusajaya Residences,” he said.

For the residential components, UEM Land is in a joint venture with Limitless LLC, a unit of Dubai World, for the development of a 111-acre project in Puteri Harbour comprising 900 waterfront homes.

It is also in a joint venture with Gamuda Bhd to develop the 1,200-acre Horizon Hills, which includes 12-gated precincts.

The company is directly developing the 250-acre Nusa Idaman, the bungalow-only 360-acre Ledang Heights and the 365-acre East Ledang, a gated community to be launched next week.

Wan Abdullah also said 600 acres of the Southern Industrial and Logistics Clusters would be ready for their purchasers to build factories before the end of the year.

By The Star (by Fintan Ng)

UEM Land’s profit catalyst

PETALING JAYA: UEM Land Sdn Bhd expects record sales and profit by 2012 when development of its Bandar Nusajaya in the Iskandar Development Region (IDR) picks up momentum.

Managing director Wan Abdullah Wan Ibrahim said the development of Nusajaya should reach its “tipping” point by 2011 as new activities and projects were being launched.

Targeted for completion in 30 years, Nusajaya is expected to incur a total gross development cost of RM55bil.

UEM Land is currently working on 11,000 acres in Nusajaya.

The sale of 4,500 acres to Khazanah in 2006–2007 for RM1.9bil has reduced the company's gearing to 0.48 time from 17.38 times before.

Upon completion, Nusajaya will have 100,000 homes and a population of 500,000. Besides the residential component, the other growth catalysts for Nusajaya include a theme international resort, education city (EduCity), medical city (MediCity), waterfront development, Johor's new administrative centre and the Southern and Industrial Logistics Centre, an industrial estate development.

Analysts said the expected consolidation of UEM Land's parent, UEM World Bhd, would raise the profile and financial capability of UEM Land to actively promote its Nusajaya development.

UEM World is expected to announce today a major corporate exercise that could involve the streamlining of the group's business structure.

“The proposed consolidation of UEM World will make it a more focused group in the property business. It will be able to leverage and take advantage of its huge land ownership in the IDR,” an analyst at a local brokerage said.

Wan Abdullah said the company needed to establish considerable level of activities and critical mass to ensure Nusajaya's success in a shorter time.

“Going by its normal pace, the development will take about 180 years but we are fast tracking it by working with strategic partners who are competent in their areas of expertise,” he told StarBiz recently.

So far, the development of Nusajaya is progressing steadily with 11,000 homes completed by various developers and delivered to buyers.

The value of the units sold by UEM Land last year rose to RM485mil compared with RM80mil in 2006.

The sales value does not include other contributors to revenue, such as sale of land during the de-gearing exercise, revenue from construction of the new administrative centre and other strategic land sale to joint-venture partners.

By April, Johor's administration will be moving to Nusajaya. To date, 95% of the Mentri Besar's office and the state legislative assembly office have been completed.

UEM Land is negotiating to build the Federal administrative complex, which will be under the build, lease and transfer model.

According to Wan Abdullah, many developers are vying to participate in the development of Nusajaya and that the company would be selective and only team up with those that could add value to the development.

“The partners must have the right technical expertise, financial strength and marketing network to add value and contribute positively to the development of the sprawling township,'' he said.

UEM Land has tied up with a few partners, including Gamuda Bhd to undertake the development of Horizon Hills and with Limitless LLC, a unit of Dubai World, to build 900 waterfront homes in Puteri Harbour.

The 1,200-acre Horizon Hills resort development is a 50:50 joint venture between UEM Land and Gamuda.

Since the first product was launched in March last year, sales have to date reached RM350mil.

In December, the company signed a 40:60 joint venture with Limitless.

“We are looking at working with more competent partners to offer more quality property products as we are targeting the regional market,” Wan Abdullah said.

By The Star - StarBiz (by Angie Ng)

RM4b business within a year seen

YEE: KWC hopes to not only double the value of the current business but to grow exports to a level that puts foreign and local demand on equal footing

The developer of Kenanga Wholesale City (KWC), a one-stop centre for garment wholesalers, believes that within a year of operation, its tenants will have transacted business valued at RM4 billion.

KWC is a wholesale market concept akin to Dubai's Gold Souk. It is being developed in the Pudu area of Kuala Lumpur.

The building, when ready in 2010, is expected to house most of the wholesalers already in the Jalan Kenanga area (behind the Jalan Pudu Fire Station) and to rope in new ones too.

Built by Kenanga Wholesale City Sdn Bhd, the 22-storey building will have a gross built-up of 1.8 million sq ft and a net lettable area of 500,000 sq ft.

The relocated retailers together with new players, including those in the shoe and handbag business, are also expected to spur export business.

"The Wholesale City's history began 20 years ago at Kenanga area with small wholesale businesses. (However) the area surrounding it is not that impressive, there is traffic congestion, lack of car park space, and loading and unloading is a constant problem," Kenanga Wholesale City Sdn Bhd chief executive officer and managing director Yee Ia Howe said.

"There are about 350 wholesale operators in the Kenanga area, who are operating from shophouses. Their current transaction value is about RM2 billion, of which 30 per cent is exported and 70 per cent is for the local market.

"With the Wholesale City, we will offer more space, including for newcomers," he said.

Yee added that KWC hopes to not only double the value of the current business but to grow exports to a level that puts foreign and local demand on equal footing.

"We expect business transaction to be RM4 billion within a year of operations," he said.

This will also be made possible by KWC working together with the Malaysia Garments Wholesale Merchants Association to promote the market overseas, targeting in particular Singapore, south Thailand, Cambodia, the Philippines, Brunei and the Middle Eastern countries.

Kenanga Wholesale will be built on a 1.29ha piece of land, which used to be the site for Tenaga Nasional Bhd staff quarters.

The new building will have a gross development value of RM1 billion.

About 70 per cent of the KWC space has already been sold, with 10 per cent of the buyers being investors who have leased their property back to the developer.

Yee expects some 792 retail lots, measuring between 300 sq ft and 600 sq ft to be taken up within the next four to six months.

KWC will also continue to hold some of the floors which translates into 51 per cent control of the mall space.

"This will ensure that the developer will be able to control and manage the property and safeguard the investment of the owners," he said.

By New Straits Times (by Vasantha Ganesan)

E&O to build RM1bil investment portfolio

KUALA LUMPUR: Eastern & Oriental Bhd (E&O) intends to build RM1bil worth of property investment portfolio in the next five years, now that the proposed merger with listed property arm E&O Property Development Bhd (E&O Prop) has got the go-ahead from shareholders.

Three years ago, E&O attempted to take E&O Prop private by making a voluntary general offer but the deal fell through because the latter’s minority shareholders voted against it at an EGM.

This time, the proposal received a huge approval of 99.9% in terms of shareholding value, and 80 positive votes from 86 shareholders during the court-convened meeting by E&O Prop yesterday.

E&O Prop shareholders are given three options – share swap, combination of cash and shares or maximised cash option. The merger is expected to be completed by June.

E&O managing director Datuk Terry Tham told reporters after the meeting that going forward, the group was expected “to continue to make handsome profits.”

Datuk Terry Tham

Executive director Eric Chan said the group had identified several prime properties to form part of the property investment portfolio, which would provide recurring income to the group.

Eventually, earnings contribution between the three core businesses – property development, property investment, and hospitality and lifestyle – would be more balanced in the ratio of 60:20:20.

Currently, property development comprised more than 90% of earnings, Chan said, adding that over RM4bil worth of properties were targeted for launch within the next three years.

E&O, which owns the Delicious Group, plans to open another restaurant at the Dua Residency Annexe, Kuala Lumpur, which is also owned by E&O.

Presently, there are three Delicious and two D’lish outlets under the group in the Klang Valley.

Tham said a Delicious outlet was also anticipated to open at one of its properties in Penang.

On the recent memorandum of understanding signed with Kuwait Finance House for the development of Heritage District in the Iskandar Development Region, Chan said it was still at a preliminary stage as the involved parties had not finalised the terms.

“It is still hot from the oven. We will be looking at the details of the plan in the next couple of months,” he said.

By The Star

Property to be enlarged E&O revenue driver

PROPERTY development will continue to be the core driver of the soon-to-be-enlarged Eastern & Oriental (E&O) group, with over RM4 billion projects to be launched within the next three years.

Managing director Datuk Terry Tham said in five years, property development would account for 60 per cent of the group's earnings, while property investment and hospitality/lifestyle business would equally contribute 20 per cent each.

"Our property investment division will allow us to maintain prime commercial assets worth RM1 billion over the next five years," he said, adding that this will provide the group with recurring income and capital appreciation.

Tham also said expansion plans are under way for the group's existing E&O Hotel and Lone Pine Hotel as well as increasing the number of its food and beverage outlets under the Delicious group.

He added that an additional 150 suites will be added to E&O Hotel's 101 suites while Lone Pine Hotel will see an increase of 50 rooms.

Tham said this at a press conference in Kuala Lumpur yesterday after the extraordinary general and court-convened meetings where shareholders voted in favour of the merger between E&O Property Development Bhd and E&O Bhd (EOB).

Expected to be fully completed by the middle of this year, the enlarged E&O group will have a market capitalisation in excess of RM1.7 billion, based on the enlarged EOB share capital as at February 11.

The shareholders of the two companies will be given three options before the merger can take place, namely full share swap, fixed cash and share combination or maximised cash.

Tham said a total of RM213 million cash funding is readily available should all the minority shareholders elect for the fixed combination option.

The full share swap option is on the basis of 1,000 unit of E&O Property shares for 1,100 unit of EOB shares while the fixed combination will involve 650 units of E&O Property shares for 715 units of EOB shares while the remaining 350 units of E&O Property shares is exchangeable for cash of RM875.

Tham also said EOB has signed a memorandum of understanding with Cultural Cluster Sdn Bhd on Thursday to form a joint-venture company for the development of a 78ha parcel of land within the Iskandar Development Region.

Cultural Cluster is a special purpose development vehicle owned by Al-Nibras 2 Ltd, a Labuan-based private fund company managed by Kuwait Finance House (Labuan) Bhd which is a wholly-owned subsidiary of Kuwait Finance House (Malaysia) Bhd.

By New Straits Times (by Roziana Hamsawi)

SP Setia sees revenue rise

New and existing projects to rake in RM1.8b

PENANG: SP Setia Bhd expects to generate about RM1.8bil in sales revenue from new and existing property projects in the country and overseas in the financial year ending Oct 31.

Speaking at a press conference during the company’s Chinese New Year celebration here, group managing director and chief executive officer Tan Sri Liew Kee Sin said new property launches in Vietnam were expected to rake in sales of RM300mil to RM400mil.

Existing and new projects in Penang were seen contributing about RM250mil, he said, adding that it planned to launch Setia Vista, a RM250mil landed property scheme in Relau, in April.

Tan Sri Liew Kee Sin posing for a photo at the SP Setia Show Village.

“The Eco Garden scheme, to be launched in Johor Baru (tomorrow), and other existing projects in Kuala Lumpur would generate the rest of the (targeted) revenue,” Tan said.

He said the Setia Pearl Island project in Sungai Ara had generated RM286mil in sales revenue since its launch last April.

“We are interested in introducing ecological-friendly development projects to Penang.

“In our projects, every plant, tree and shrub is planted to serve a particular ecological purpose.

“Landscaping and ecological planning is what differentiates SP Setia from other developers,” he said.

Tan added that the group was currently sourcing for land in Penang to launch new projects.

By The Star (by David Tan)

SP Setia sees up to RM400m sales from 'EcoLakes' project

PROPERTY developer SP Setia Bhd is targeting between RM300 million and RM400 million in sales of properties at its soon-to-be-launched 'EcoLakes' project in Vietnam.

Its group managing director and chief executive officer Tan Sri Liew Kee Sin said the company, which has obtained the necessary approvals to launch the project in April this year, will use the project to showcase Malaysian expertise in the property development sector in Vietnam.

The 200ha integrated development, which carries a gross development value of RM2.5 billion, is located in Ho Chi Minh City.

"We will ensure that this maiden project of ours in Vietnam carries the same high standards executed in Malaysia as we brand ourselves as one of the best developers in that country," he told reporters during a Chinese New Year gathering in Penang yesterday.

Last month, SP Setia announced that it has clinched a deal to jointly build a 32ha mixed development project in Ho Chi Minh City, which caters to expatriates and senior staff working in the Saigon High Technology Park.

Liew said SP Setia, which is expecting to record sales of RM1.8 billion for its 2008 fiscal year ending October 31, is expecting its projects in Penang to contribute RM300 million to the total.

He said the company's "SP Vista" project which will be launched in the second quarter this year, will see 225 units of three-storey homes being built plus apartments. Spread out on 8.4ha in Relau, it is set to carry a development value of RM250 million.

SP Setia's maiden foray into Penang is the Setia Pearl Island project, which features 1,200 landed homes on a 45ha site.

To be developed over the next five to six years, the project comprises three-storey terraced homes, semi-detached units and commercial lots, and is located between 4km and 5km from the proposed site of the second Penang bridge at Batu Maung, 10km from the Penang Bridge and 20km from George Town.

By New Straits Times (by Marina Emmanuel)

Sabah to set up one-stop investment authority

SABAH will set up a one-stop investment authority called the Sabah Economic Development Investment Authority (Sedia) to facilitate investments in the state.

Executive director of Institute for Development Studies in Sabah, Datuk Dr Mohd Yaakub Johari said Sedia will be governed by a board of directors comprising the prime minister and the Sabah chief minister as co-chairmen.

"It will operate in line with best practices of corporate governance recognised globally and run by a pool of top-notch management talent.

"Sedia will ensure that investors in the identified high priority sectors have one point of contact to obtain the necessary approvals, licences and available incentives for set-ups," he said.

Dr Yaakub said Sedia will also ensure that infrastructure and logistic projects are timely executed.

He was speaking at a briefing on the Sabah Development Corridor for the South Korean Ambassador to Malaysia, Yang Bong-ryull, during the latter's visit in Kota Kinabalu yesterday.

Yang was leading a nine-member delegate to look at business opportunities in Sabah, particularly in petrochemical and plantation sectors.

By New Straits Times (by Julia Chan)

Looking for property ? Step into Asia Move Machine's outlet in KLCC

A new retail property outlet named Propertrack.com.my, operating in Kuala Lumpur City Centre (KLCC), welcomes walk-in property investors interested in the secondary market within the Klang Valley.

Set up by Asia Move Machine Sdn Bhd, this property retail outlet provides licensed real estate agents an alternative marketing platform.

"What we have set up here is a shop where investors can walk in and browse through detailed brochures of residentials and commercial units available in Klang Valley," said Asia Move Machine managing director Stephen Hodgson.

"It is complementary to the classified advertisements in the newspapers as we offer a more personalised and detailed approach to property investment," he said in a recent interview held at his office along Jalan Pinang in Kuala Lumpur.

The retail property concept, inspired from Europe, offers more value-added services for real estate agents as they can treat it like an extension of their own offices.

Within the confines of propertrack.com.my retail outlet along Jalan Pinang, there are 3,800 advertisement space for real estate agents to market their properties.

Each block of space measures half an A4-sized paper.

Citing waivers of real property gains tax (RPGT) and foreign investment committee (FIC) approvals, Hodgson is optimistic of an encouraging response to propertrack. com.my from real estate agents and walk in property investors.

He related a recent incident where a Singaporean family crossed Jalan Pinang (after coming out of the Aquaria at the KL Convention Centre) and walked into propertrack.com.my.

"As they browsed through the properties advertised here they gave serious thought to invest in a couple of condomimiums within KLCC," he said.

"We're optimistic of gaining a small slice of the secondary property market within Klang Valley, especially with the waiver of RPGT and FIC approvals," he added.

By New Straits Times

Significant changes to Housing Act

Last month, we examined some of the significant changes made to the statutory sale and purchase agreement for a housing accommodation comprising land and building. In part two this month, we look at significant changes made to the statutory agreement for a housing accommodation comprising a building or land intended to be subdivided into parcels held under strata titles, brought about by the recently amended 1989 Regulations, which came into operation on Dec 1, 2007.

Agreements for buildings or land intended for subdivision into parcels (Schedule H)
The title to the Schedule H agreement has been changed to “Building or land intended to be subdivided into parcels”. A recent amendment to the Strata Titles Act, 1985, has permitted land with buildings of not more than four storeys to be subdivided into land parcels to be held under strata titles. This new strata scheme will meet the needs of a new housing development concept referred to as Gated Community Schemes.

Parcels free from encumbrances before vacant possession
In the event the land upon which the development is taking place is encumbered to any bank, the amended Schedule H requires the proprietor/developer to deliver to the purchaser or his financier, a copy of the redemption statement and undertaking issued by such bank, in respect of the purchaser’s parcel, immediately after the date of the agreement. Previously, the time period to deliver such redemption statements and undertakings was not specified.

Loans
The purchaser’s financier is now required to furnish to the developer an unconditional undertaking to pay the loan sum and in return the developer will undertake to refund the loan sum in the event the transfer of the parcel cannot be registered in favour of the purchaser for any reason that is not attributable to the purchaser.

Right to initiate and maintain actions
The purchaser may now initiate and maintain any action or suit in any court or tribunal provided that his financier is notified of the action or suit within 14 days after the action or suit has been filed.



Defaults by purchasers
A new event of default has been added. If the purchaser fails to pay any sum or sums payable (other than any instalment payable and any interest thereon) for any period in excess of 28 days after the due date, the developer may take steps to annul the sale of the parcel.

Strata title and transfer
The duty and obligation of the proprietor/ developer to execute an instrument of transfer in favour of the purchaser, within 21 days upon issue of the strata title to the parcel has been extended. The executed instrument of transfer shall now be forwarded to the purchaser together with the strata title. This is, of course, subject to full payment of the purchase price and
observance of all terms and conditions by the purchaser.

Position and area of parcel
The purchaser is entitled to an adjustment of the purchase price if the area of the parcel shown in the strata title is less than the area shown in the building plan by more than 2% instead of 3%.

Infrastructure and maintenance
Under the new Building and Common Property (Maintenance and Management) Act, 2007 (Act 663), a Joint Management Body (JMB) is to be established if the management corporation is not in existence at the time of delivery of vacant possession.
The purchaser will contribute to the infrastructure maintenance costs, until they are taken over by the appropriate authority or the JMB and the developer shall provide to the purchaser a list and description of the infrastructure and the expenditure incurred in the maintenance thereof.

Service charges
The purchaser shall pay to the developer service charges for the maintenance and management of the common property and for services provided by the developer until the establishment of the JMB. Thereafter services charges shall be payable to the JMB.

In respect of such service charges, the purchaser will pay four months’ in advance instead of one month’s deposit and three months in advance. All services charges received by the developer shall be paid into a Building Maintenance Account established under Act 663.

The service charge statement prescribed in the Fifth Schedule has been slightly modified. Service charges shall be paid within fourteen days, instead of seven days.

Sinking fund
From the date the purchaser takes possession of his parcel, he is liable to contribute a sum equivalent to 10% of the services charges to a sinking fund established under Schedule H. All funds accumulated in this sinking fund, which is maintained by the developer, are held in trust for all purchasers, and the developer is required to transfer any accumulated funds into a sinking fund established under Act 663.

It is pertinent to note that before the establishment of the JMB, the contribution to the Schedule H sinking fund is a separate and additional payment. Once the JMB is established, the sinking fund established under Act 663 will comprise such portion of the contribution to the Building
Maintenance Fund as may be determined by the JMB and the purchaser is no longer required to make a separate and additional payment to such sinking fund.

Delivery of vacant possession
The purchaser may now occupy the housing accommodation when the certificate of completion and compliance has been issued, water and electricity supply are ready for connection, and the purchaser has paid all monies payable and due. The certificate of fitness for occupation is no longer required.


Wong: The defect liability period has been raised to 24 months

Defect liability period
The defect liability period has been increased from 18 months to 24 months and a purchaser may make a claim before the expiry of 18 months or 24 months after he takes vacant possession. Once a notice of claim by a purchaser has been made, the developer’s solicitors may not release the monies held by him until the developer’s architect has certified that the defects, shrinkage or other faults have been repaired and made good by the developer.

Assignment
The purchaser may assign all his rights and interest in his parcel to a third party without the consent of the proprietor or the developer, provided he has fully paid the purchase price and complied with all terms and conditions of the agreement, or if before full payment, the developer and the purchaser’s financier have exchanged undertakings mentioned earlier.
Additional Plans
Two additional plans are required to be attached: the layout plan and the common facilities plan.

Transitional provisions
In the case of the Schedule G discussed last month and the Schedule H discussed in this part, the amended 1989 Regulations do not affect the validity of any contract for the sale and purchase of a housing accommodation entered into after April 12, 2007, but before Dec1, 2007, and such
contract shall continue to have full force and effect even if inconsistent with or contrary to any provisions of the amended Schedule G or H. Further, if on Dec 1, 2007, a contract of sale has been signed in any phase of a housing development, the developer may continue to use the previous Schedule G or H agreements until all the housing accommodation in the said phase of housing development have been sold.

The writer is the deputy chairman of the Conveyancing Practice Committee, Bar Council, Malaysia www.malaysianbar.org.my

Note: This column is brought to you by the Malaysian Bar Council for your information only. It does not constitute legal advice. You should therefore seek professional legal advice for your specific needs. Neither the Malaysian Bar nor the Sun Media Corporation Sdn Bhd shall be liable to any reader who suffers losses as a result of relying on this column.

Article by theSun (by Andrew Wong)

Green light for KL Grand Hyatt

LONG OVERDUE: An artist's impression of Grand Hyatt KL - website picture.

The Brunei Investment Agency, one of the world's largest sovereign wealth funds with assets of US$30 billion (RM97.2 billion), has finally been given the green light to develop the Grand Hyatt hotel on Jalan Pinang, Kuala Lumpur.

Business Times was informed that the proposal, which was submitted in 2005, was approved in late November 2007, after several amendments to its original proposal had been made.

Brunei Investment Agency official Suharafadzil Yusof when contacted said the project had been approved.

However, he declined to say when work will start or when the project will be ready. Apart from a 40-storey five-star hotel, the building will also house service apartments and offices.

The hotel alone may cost about RM360 million, industry executives estimated, if it sticks to a plan to have 450 rooms.

There was also no response to Business Times' query from Hyatt International's office in Singapore.

Industry experts say that if construction begins immediately, it could take anything between 30 and 36 months to be ready.

This means that the hotel may be operational in 2010.

In a press release put out in 2007, it was reported that international destination-design firm Wimberly Allison Tong & Goo (WATG) served as the design architect, together with local firm GDP Architects.

WATG did not reply to e-mail queries.

The 2007 release said that the hotel lobby is located at the top of the building and guests at the lobby will have an impressive 360-degree view of downtown KL.

The project is slated to open to the public in December 2010, the statement said.

Earlier plans to open a Grand Hyatt Duta came to an end as the project was never completed.

The Hyatt Group in 1994 gave the contract to develop the RM570 million Grand Hyatt Duta to Kuala Lumpur Landmark Sdn Bhd, a subsidiary of Olympia Industries Bhd.

Mycom Bhd, the holding company of Olympia, then teamed up with Kuala Lumpur Landmark to develop a 52-storey building to house its headquarters and the hotel.

However, construction was halted in July 1998, when the group encountered financial difficulties during the 1997/1998 economic downturn.

The Grand Hyatt Duta was to have been completed in 1997. Until today, the hotel at the corner of Jalan Sultan Ismail and Jalan Ampang remains partly completed. The Hyatt Group is no longer associated with the project.

The Hyatt Group also operates the Hyatt Regency Kinabalu, Hyatt Regency Johor Baru and Hyatt Regency Kuantan Resort.

By New Straits Times - (Business Times) (by Vasantha Ganesan)

Tanco revives Port Dickson project

Three phases of stalled Palm Springs Resort to be launched this year

KUALA LUMPUR: Resorts operator and property developer Tanco Holdings Bhd will, for the first time in 10 years, be launching this year three phases of a previously stalled major project, Palm Springs Resort, in Port Dickson.

The company had been launching several small phases of its Bandar Country Homes development in Rawang in the past few years, but these had been slow, business development director Andrew Tan told StarBiz.

For Palm Springs Resort which comprises 15 phases, Tanco aims to launch Duta Grande comprising 800 units of 410 to 830 sq ft resort suites with a gross development value (GDV) of about RM260mil ; SPA Village with 70 chalets ranging from 1,200 to 1,400 sq ft worth RM70mil in GDV; and Palm Springs Boulevard consisting of 24 shop lots with built-up areas of 1,200 sq ft with a GDV of RM15mil.

The company, which came out of PN17 classification on Jan 17 after debt restructuring and the emergence of a new lead banker in Lehman Brothers Commercial Corp Ltd, also plans for more launches at its Rawang development.

Andrew said the Rawang development was mature, with about 10,000 homes and 45,000 residents.

The company plans to launch in Rawang phase 2 of its Greenwood Park district consisting of 155 terrace houses of about 1,700 sq ft priced from RM240,000. The total GDV for this phase is RM70mil.

It will also launch Ivory Heights, comprising 52 bungalows with built-up areas of 3,200 sq ft, with prices starting from RM600,000.

In the company’s debt restructuring, Lehman provided a two-year loan facility of about RM239.6mil in November last year to repay Tanco’s existing debt obligations, to mainly local banks.

Tanco director Datuk Lynne Tan said with only one lender now, the company would be able “to work on our assets” and re-launch its projects as well as the timeshare sales that it had been so successful with in the past.

Tanco was also looking to build up its landbank, she added.

Lynne said the focus in the near term would be on Palm Springs Resort, with another 400 acres of undeveloped prime seafront land with condominiums, a hotel, a waterpark and marina in the works.

Tanco would be banking on selling most of these projects en bloc to foreign investors, Andrew said.

He said as many international portfolio funds were mandated to invest in the Klang Valley or in resorts, given that property prices in the Golden Triangle had doubled in the past 12 months, the country’s resorts could attract such funds.

By The Star (by Loong Tse Min)

UEM Land’s profit catalyst

Nusajaya to help it post record sales and profit by 2012

PETALING JAYA: UEM Land Sdn Bhd expects record sales and profit by 2012 when development of its Bandar Nusajaya in the Iskandar Development Region (IDR) picks up momentum.

Managing director Wan Abdullah Wan Ibrahim said the development of Nusajaya should reach its “tipping” point by 2011 as new activities and projects were being launched.

Targeted for completion in 30 years, Nusajaya is expected to incur a total gross development cost of RM55bil.

UEM Land is currently working on 11,000 acres in Nusajaya.

The sale of 4,500 acres to Khazanah in 2006–2007 for RM1.9bil has reduced the company's gearing to 0.48 time from 17.38 times before.

Upon completion, Nusajaya will have 100,000 homes and a population of 500,000. Besides the residential component, the other growth catalysts for Nusajaya include a theme international resort, education city (EduCity), medical city (MediCity), waterfront development, Johor's new administrative centre and the Southern and Industrial Logistics Centre, an industrial estate development.

Analysts said the expected consolidation of UEM Land's parent, UEM World Bhd, would raise the profile and financial capability of UEM Land to actively promote its Nusajaya development.

UEM World is expected to announce today a major corporate exercise that could involve the streamlining of the group's business structure.

“The proposed consolidation of UEM World will make it a more focused group in the property business. It will be able to leverage and take advantage of its huge land ownership in the IDR,” an analyst at a local brokerage said.

Wan Abdullah said the company needed to establish considerable level of activities and critical mass to ensure Nusajaya's success in a shorter time.

“Going by its normal pace, the development will take about 180 years but we are fast tracking it by working with strategic partners who are competent in their areas of expertise,” he told StarBiz recently.

So far, the development of Nusajaya is progressing steadily with 11,000 homes completed by various developers and delivered to buyers.

The value of the units sold by UEM Land last year rose to RM485mil compared with RM80mil in 2006.

The sales value does not include other contributors to revenue, such as sale of land during the de-gearing exercise, revenue from construction of the new administrative centre and other strategic land sale to joint-venture partners.

By April, Johor's administration will be moving to Nusajaya. To date, 95% of the Mentri Besar's office and the state legislative assembly office have been completed.

UEM Land is negotiating to build the Federal administrative complex, which will be under the build, lease and transfer model.

According to Wan Abdullah, many developers are vying to participate in the development of Nusajaya and that the company would be selective and only team up with those that could add value to the development.

“The partners must have the right technical expertise, financial strength and marketing network to add value and contribute positively to the development of the sprawling township,'' he said.

UEM Land has tied up with a few partners, including Gamuda Bhd to undertake the development of Horizon Hills and with Limitless LLC, a unit of Dubai World, to build 900 waterfront homes in Puteri Harbour.

The 1,200-acre Horizon Hills resort development is a 50:50 joint venture between UEM Land and Gamuda.

Since the first product was launched in March last year, sales have to date reached RM350mil.

In December, the company signed a 40:60 joint venture with Limitless.

“We are looking at working with more competent partners to offer more quality property products as we are targeting the regional market,” Wan Abdullah said.

By The Star (by Angie Ng)

Metropolitan Square’s appeal

PETALING JAYA: There has been a significant increase in foreign interest for Saujana Triangle Sdn Bhd's Metropolitan Square mixed development in Damansara Perdana.

According to the developer’s operations senior manager Preetie Boler, the development’s properties are attracting buyers and tenants from Korea, Singapore, Japan and Europe.

Currently, about 30% to 35% of the buyers for units in Metropolitan Square are foreigners but Boler expects the figure to increase in the future.


One of the completed condominium blocks and commercial properties in Metropolitan Square

“We have some foreign purchasers coming from the Mont’Kiara area who are attracted to our reasonable prices and the environment of the development,” she said. The developer is a subsidiary of MK Land Holdings Bhd.

“Located on a 17-acre leasehold tract in the self-contained Damansara Perdana township, residents have access to a wide variety of commercial facilities, which are supported by nearby amenities including major shopping centres, private and international schools, hotels, and medical institutions,” she said.

It also has a 28,000 sq ft clubhouse, which has facilities such as a swimming pool, gymnasium, tennis courts and a multipurpose hall. It is accessible via several major highways including the
Penchala Link, Damansara Puchong Highway (LDP), North Klang Valley Expressway (NKVE) and the North South Highway.

Metropolitan Square is targeted at yuppies, expatriates and investors.

Since its launch at the end of 2003, two condominium blocks in Metropolitan Square have already been completed and handed over to purchasers. Its latest condominium and serviced apartments block have achieved take-ups of 95% and 20% since their respective launch and soft launch in end-2004 and end-2007.

Built-ups for the 300 condominium units range from 975 sq ft to 1,259 sq ft, with prices of RM375,000 onwards, while the 422 serviced apartments, priced between RM178,500 and RM425,000, have built-ups from 450 sq ft to 1,166 sq ft. The former is expected to be complete
by the middle of this year with a gross development value (GDV) of RM110 million while the latter is targeted for completion in 2010 with a GDV of RM115 million. Two more condominium
phases are scheduled for launch in the future.

Boler said Damansara Perdana has good potential for capital appreciation as property prices there are much lower compared to other nearby townships such as Mont’Kiara, Bangsar, Damansara Heights and Taman Tun Dr Ismail.

“Based on our records, the capital appreciation for units [in Metropolitan Square] upon handover, ranges from 20% to 30%,” she said, adding that rental yields for the commercial units and first two condominium blocks averages at about 8%. Residential units in the development are being rented out at RM1,500 and above.

In conjunction with Chinese New Year, the developer is having an ongoing sales campaign for Metropolitan Square until the end of this month. Purchasers of the condominiums are eligible for a RM10,000 discount, a 32-in LCD TV, and free sale and purchase agreement (SPA) fees, while those buying the serviced apartments get a RM5,000 discount and free SPA fees during the promotion period.

By theSun (by Yap Yew Jin)

Putrajaya Holdings in talks to sell building

PUTRAJAYA: Putrajaya Holdings Sdn Bhd (PJH) has identified three investors for the en bloc sale of its 26 Boulevard office building in Putrajaya's Precint 3, said chief executive officer Azlan Abdul Karim.

The investors comprised two local parties and one foreign purchaser, he said.

“We will give the first option (to purchase) to the local investors but we will, of course, consider the best offer,” Azlan told reporters at a seminar yesterday.

The 12-storey building has 48,000 sq m gross floor space and is valued at more than RM200mil.

“We expect to finalise the sale by the beginning of the next quarter,” Azlan said, adding that PJH was also in negotiations to sell a parcel of land to a local investor but did not reveal the potential buyer's identity.

“We have an investor and will make an announcement by the end of this month,” he said.

Earlier in his presentation on Creating A Liveable And Vibrant Putrajaya, Azlan said more commercial projects should be emphasised in the federal administrative capital.

Azlan Abdul Karim

“When Putrajaya was developed, commercial amenities were not given enough emphasis.

“Because of that, Putrajaya has become too governmental, resulting in an imbalanced racial mix,” he added.

According to Azlan, Putrajaya needs more commercial amenities such as shopping complexes, night markets and cinemas to make it more vibrant.

“We have set up eight cineplexes and are looking for operators,” he said, adding that PJH was targeting to open five cineplexes, to be managed by Golden Screen Cinemas, next month.

Other notable projects by PJH include the Nexus World-School, an international school that will be managed by the Garden International School; and the Pullman Lakeside Putrajaya, a four-star hotel to be managed by Accor. These projects are slated to be up and running by September.

Azlan added that Putrajaya's distance from Kuala Lumpur was another cause for concern, suggesting that alternative forms of transportation such as light rail transit (LRT) and monorail be implemented.

According to him, Putrajaya is already equipped with “quite an extensive'' network of underground LRT and some overhead monorail lines and stations that are spaced out roughly 500m apart.

“The Government had appointed PJH to manage the construction of these (LRT and monorail) facilities. Despite an extensive network already in place, it is still not operational,” he said.

Azlan did not comment on why the LRT and monorail projects were not up and running, but added that the implementation of such service would greatly benefit the capital.

By The Star (by Eugene Mahalingam)

Putrajaya gets offer for office block

PUTRAJAYA Holdings Sdn Bhd, the master developer of the federal administrative capital, has received unsolicited offers and is close to selling en bloc a 12-storey office building in Precinct 3.

Chief executive officer Azlan Abdul Karim said two local parties and one foreign firm have offered to buy the entire block of 26 Boulevard, although it did not initially plan to sell the building. The block is estimated to worth over RM200 million, he said.



"We cannot be too sentimental as a developer. If the price is right we have to let it go. The first priority will be given to the local parties, but of course, price matters," he said in Putrajaya yesterday.

Azlan said a deal is likely to be concluded by the end of this quarter, or early next quarter.

The building, which uses double blazing glass as a key component, is designed to be energy-efficient as coating of the glass can absorb and then reradiate the sun's heat.

Measuring 48,000 sq m in gross floor area, Azlan said the building received its certificate of fitness last month and is already 90 per cent tenanted.

He said foreign investor interest in Putrajaya is growing although the company has yet to go into full swing in promoting properties in the city outside Malaysia.

Putrajaya Holdings made its first land sale to a foreign investor last July when it sold a 0.61ha site in Precinct 3 to Hong Kong-incorporated TRW Group for RM23.2 million.

It recently sold another piece of land around 1.2ha to local company, Malaysia Land Properties Sdn Bhd, which counts Hong Kong property tycoon Tan Sri David Chiu as a major shareholder.

Putrajaya Holdings is set to sign later this month its third land sale measuring 0.6ha, to a local company backed by foreign owners, Azlan said.

"Foreigners, like Chiu, are very bullish on the office space in Putrajaya. These property players believe that when they build the office lots here, people will eventually move from other more expensive cities like Singapore to Putrajaya," he said.

"Not only are the rentals here much cheaper compared to Kuala Lumpur, Putrajaya is also a well-planned city with full government support. They believe in the city's potential in the long run, judging from other planned administrative cities like Washington DC," he added.

By New Straits Times (by Chong Pooi Koon)

UEM World to unveil corporate exercise

UEM World Bhd, a diversified company 51.9 per cent-owned by Khazanah Nasional Bhd, will on Friday unveil a corporate exercise that will lead to a significant change in its business direction.

It told the stock exchange yesterday that the exercise would also involve four of its listed units, namely UEM Builders, Opus Group, Pharmaniaga and Cement Industries of Malaysia Bhd (CIMA).

It has controlling stakes in all four companies.

Some analysts speculated that the exercise may involve an asset swap between the UEM World and Khazanah, while others said UEM World may be looking to dispose of non-core assets so that it emerges as a pure property developer.

UEM World oversees Malaysia's biggest property project, the 9,712-hectare Nusajaya development in Johor.

"They may be looking to sell non-core assets to raise cashflow for the Nusajaya development," an analyst with a foreign research firm said.

There were also some analysts who suspect that UEM World's listed units may be privatised.

"Whatever the exercise, Khazanah will typically be looking to extract value from the companies," said Colbert Nocom, head of research at UBS Securities. He noted that all five of the companies are undervalued.

Trading in shares of all the companies have been halted since the afternoon session yesterday, pending the announcement. They will resume trade next week.

UEM World last traded 3 per cent higher to RM4.12; UEM Builder 1.6 per cent higher to RM1.26; Opus 3 per cent up to 86 sen; CIMA 3.7 per cent higher to RM5.60 and Pharmaniaga, 21.9 per cent up to RM3.78.

By New Straits Times (by Adeline Paul Raj)

Dijaya plans Jenjarom project launch in 2009

PETALING JAYA: Dijaya Corp Bhd plans to launch the first phase of the RM270 million mixed development on its recently acquired land in Jenjarom, Kuala Langat, Selangor, by end-2009, its managing director Tong Kien Onn told theSun.

“We have yet to decide on the final components of the proposed development, but it will comprise mainly residential properties.

The composition will depend on market studies yet to be carried out,” he explained.

Earlier this week Dijaya Corp announced that its wholly owned subsidiary Nadi Jelita Sdn Bhd had entered into a sale and purchase agreement with Beta Fame Sdn Bhd to acquire four parcels of freehold agricultural land, measuring 93.418 acres in Jenjarom, Kuala Langat, for RM29.5 million.

Tong said the project, which has yet to be named, will be targeted at the upgrader market of the local population in Jenjarom, Banting and its immediate surroundings who are looking for quality products. The site is located within the commercial center of Jenjarom town and along the Klang/ Banting road, which has been seeing rapid development.

The land acquisition for the project, which is slated for completion within six years, is in line with the developer’s direction to increase its landbank for development and to generate long-term sustainable income.

Dijaya Corp is synonymous with the development of its flagship project, the Tropicana Golf & Country Resort and the Damansara Indah Resort Homes.

In the Tropicana Golf & Country Resort, the developer is expecting to launch the first phase of its Tropicana Grande golf-course-fronting condominiums by the third quarter of the year.

Tropicana Grande, one of the final offerings in the resort development in Petaling Jaya, is tagged at an estimated price of RM500 psf.

There will be 298 units with built-ups from 2,208 to 6,138 sq ft.


Tong with a scale model of the integrated development of Tropicana City

Meanwhile, construction on its nine-acre freehold development of Tropicana City located at the crossroads of the LDP and Sprint highways is progressing rapidly. The Tropicana Mall is expected to be completed by the third quarter of the year. More than 40% of its 440,000 sq ft of nett lettable area has been leased out.

The second component of the integrated development is the RM147 million Tropics Designer Suites, which already has a take-up rate of 75%. The 601 units are sized from 625 to 1,176 sq ft and priced between RM222,000 and RM506,000.

The suites, which sit on top of the shopping podium, are scheduled for completion by the third quarter of 2009. Construction work on the third offering — the 105,000 sq ft Signature Office Tower recently commenced. The developer intends to retain the tower for leasing.

By theSun (by Allison Lee)