IOI Properties to raise RM932m

PROPERTY developer IOI Properties Bhd plans to raise up to RM932 million from a rights issue to part-fund its projects in Singapore.

It will also use part of the money to refinance existing debt, it said in a statement to Bursa Malaysia yesterday.



IOI Properties has total debt of RM225 million.

In January, the company, a unit of IOI Corp Bhd, won a bid with its partner to buy land on the resort island of Sentosa, Singapore, for S$1.097 billion (RM2.5 billion).

This followed its first successful bid in March last year. Then, it won a tender to buy land on the island for RM1.1 billion.

"IOI Corp, being the controlling shareholder of IOI Properties, will give its irrevocable and unconditional written undertakings to subscribe in full for its entitlement," IOI Properties said.

IOI Corp holds 71.15 per cent of IOI Properties as at February 15, 2008.

Before the rights issue, IOI Properties will split its shares into two, to boost trading in the stock as it becomes more affordable.

As at February 15 2008, IOI Properties has a paid-up capital of RM333.52 million comprising the same number of shares. After the split, the number of shares will double to 667 million.

Then, it will offer investors one new rights share for every four existing shares held after the split. The rights are priced at RM5.50 apiece.

Shares of IOI Properties closed at RM12.70 yesterday down 40 sen from Monday's close.

By New Straits Times

Gamuda mulls share buyback as market value plummets

GAMUDA Bhd, the country's second biggest builder, may buy its own shares after the company lost nearly RM2.6 billion in market value over the past six trading days.

"We are weighing our options," a Gamuda official said in a telephone conversation recently.

Gamuda has not started buying back its shares, it said in an e-mail reply to Business Times.

Last year, Gamuda's shareholders approved a share buyback plan. It could buy up to a tenth of its shares or spend not more than its retained profits.

As at August 2006, Gamuda had retained profits of RM1.15 billion.

Gamuda closed 20 sen higher at RM3.80 yesterday after DBS Vickers changed its recommendation on the stock to "buy" from "hold".

But DBS Vickers slashed its share price target from RM5 to RM4.50.

However, the single largest shareholder continued to buy more shares.

FMR LLC & Fidelity International Ltd yesterday said it bought 40,300 Gamuda shares last week, bringing its shareholding to 11.87 per cent.

The builder has been under siege since last week, after its group managing director for the past 26 years, revealed last week that he is no longer a substantial shareholder.

Datuk Lin Yun Ling sold 70 million Gamuda shares, paring his stake in the company to 1.73 per cent from 5.23 per cent before.

Following the sale, JPMorgan which said in a report that Gamuda is "a ship without rudders", cut its share price target to RM3.3O, branding it "a top stock to avoid in 2008".

By New Straits Times (by Francis Fernandez)

Gamuda’s Lin staying on

MD assures fund managers he'll lead for at least five more years

PETALING JAYA: Gamuda Bhd managing director Datuk Lin Yun Ling has given foreign fund managers an assurance that he will stay on to lead the construction group he founded for at least five more years.

StarBiz understands that Lin spoke to foreign institutional investors via teleconference on Monday and told them that his move in selling his stake was not a signal that he was exiting Gamuda.

Datuk Lin Yun Ling

He also told them that the fact that he was still heading Gamuda after trimming his equity interest in the company in April 2002 demonstrated his intention to remain in his post.

StarBiz also learned that Lin had admitted that he expected the flow of construction jobs to slow down in the near future.

Gamuda, he said, would still be able to replenish its order book, currently at a record RM11bil, but the jobs secured were unlikely to be as big as those in hand now.

The group’s earnings might not have peaked although the value of its order book might already have, he told the foreign investors.

The session was prompted by the sharp fall in Gamuda’s share price last Thursday when Lin sold 70 million shares, cutting his stake to 1.7% from 5.2%, for “estate planning purposes.”

Gamuda rebounded yesterday with a 20 sen gain to RM3.86 as the day’s most actively traded counter, on volume of 41.6 million shares.

A head of research said the heavy selldown on the construction blue chip was mainly due to the lack of details on the rationale behind Lin’s move.

“The market was left guessing what could possibly be the worst case scenario for an insider to sell the stake.

“Lin could have been more transparent on the share disposal,” he added.

Some institutional investors were upset that the group had been feeding analysts with positive news on Gamuda’s earnings prospects, which had helped push up its share price following their “buy” or “overweight” recommendations.

The stock price skidded when the market was abuzz with speculation over all the possible adverse circumstances that could affect Gamuda, one of which was that the construction industry had reached the end of the upcycle.

The group, it was felt, may experience margin squeeze given the rising price of building material costs and that being a non-bumiputra construction company, Gamuda may also face a tougher operating environment in terms of benefiting from the Government’s pump priming measures.

However, this is not the first time Lin has made such an unexpected move.

When he sold a 1.4% stake in the open market in April 2002, Gamuda’s share price nose-dived, wiping out about RM330mil in market value.

Gamuda’s order book had also swelled to a record RM3bil at that time.

In 2000, Lin took shareholders by surprise when he bought a 44% stake in polymer lithium ion rechargeable batteries maker Dyna Plastic Sdn Bhd for RM68mil cash.

Lin defended the purchase, saying that it was to give the group a more steady earnings growth given the cyclical nature of the construction industry.

The investing community, however, did not accept news of the deal well and Gamuda’s stock price was hammered.

All these happened in less than eight years. Questions are now being asked if Gamuda still deserves the higher premium it currently enjoys on its shares.

By The Star - StarBiz (by Kathy Fong)

BLand unit buys more stake in Piccolo owner

PETALING JAYA: Berjaya Land Bhd (BLand), via subsidiary Berjaya Vacation Club Bhd (BVC), will increase its stake in Absolute Prestige Sdn Bhd to 51% from 20%. Absolute Prestige owns the Piccolo Hotel and Piccolo Galleria in Jalan Bukit Bintang, Kuala Lumpur.

BVC unit Sinar Merdu Sdn Bhd had recently acquired 20% of the company's stake from Piccolo Corp Sdn Bhd for RM6mil and the latest acquisition for RM9.3mil was from another shareholder of Absolute Prestige, Abdul Samad Ramli.

BLand said in a statement yesterday that both the acquisitions were subject to approval from the Foreign Investment Committee and other authorities.

“The acquisition represents an opportunity for the BLand group to add another 239 rooms in a boutique hotel in Kuala Lumpur's Golden Triangle to its portfolio of hotels and resorts.

“It will complement our existing investments in 12 hotel properties, located in Malaysia, Seychelles, London, Sri Lanka, Singapore and, recently, in Vietnam,” it added.

Piccolo Corp director Suzianna Wong-Svrcula will remain the chief operating officer of Absolute Prestige.

“The sale provides the opportunity for the company to tap the synergy of Berjaya Land's portfolio of 12 hotels worldwide,” Wong said.

Piccolo Hotel, which was built at a cost of RM42mil, is scheduled to open by the end of next month.

By The Star (by Angie Ng)

Berjaya Land to build financial centre in Vietnam

An artist’s impression of the proposed Vietnam Financial Centre in Ho Chi Minh City.

BERJAYA Land Bhd will start work on the multi-billion-ringgit Vietnam Financial Centre project in Ho Chi Minh City, Vietnam, later this year, after receiving the go-ahead from the licensing authorities there.

The company said in a statement yesterday that the project, to be undertaken by its wholly-owned subsidiary, Berjaya Leisure (Cayman) Ltd, is scheduled for completion in stages from 2010 to 2013.


ABOVE: Ho Chi Minh City People’s Committee chairman Le Hoang Quan (right) presents the investment certificate to Berjaya Land CEO Datuk Francis Ng. Looking on is the Malaysian ambassador to Vietnam Lim Kim Eng.

The company received the investment certificate from the licensing authority in Vietnam on Saturday.

The project located at Ba Thang Hai Street, District 10, will comprise three blocks of 48- storey grade “A” offi ce tower, a multi-storey high-end shopping mall, one tower of 48-storey five-star international hotel with ballroom and convention facilities and one tower of 48- storey luxury service suites.

Based on the latest development plans, the project will have an estimated total gross floor area of about 698,554 square metres with an estimated gross development value and costs of about US$1.3 billion (RM4.2 billion) and US$930 million (about RM3 billion) respectively.

The estimated total gross development site is 102,703 sq m, of which about 66,388 sq m will be developed.

The Vietnam National Pagoda, Hoa Binh Theatre, Youth Culture Centre and the proposed development of the Ky Hoa Hotel (to be undertaken by a third party) are located on the remaining development site measuring approximately 36,315 sq m.

BLCayman will also be overseeing the landscaping of the site, the statement added.

By theSun

Mayland plans Putrajaya office tower

PUTRAJAYA: Malaysia Land Properties Sdn Bhd (Mayland) is set to begin construction of an office tower in Putrajaya’s Precinct 3. The developer acquired the 1.56-acre tract where the commercial project will be built from landowner Putrajaya Holdings Sdn Bhd for RM23.7 million.

Mayland’s vice chairman Tan Sri David Chiu said it plans to lease out the building for long-term investment. The office tower, with a gross floor area of 420,926 sq ft, will be developed by Mayland’s wholly owned subsidiary Bliss Avenue Property Development Sdn Bhd.


Chiu (left) and Azlan had yesterday's signing ceremony

“The construction will start as soon as possible… in three to four months’ time. With a height of between eight and 14-storeys, the office block will also have a commercial element. The rental rates here are between RM4 and RM5 psf,” Chiu told reporters at a press conference after the signing ceremony between Bliss Avenue and Putrajaya Holdings yesterday.

While expressing his confidence in the demand for such commercial properties in Putrajaya, Chiu said that it had received good leasing enquiries from both the public and private sectors for Mayland’s office tower.

On the cost of the project, Chiu said that construction costs alone amounted to some RM100 million, exluding the cost of the land. The purchase is funded by the developer’s internal funds.

On the group’s landbank, Chiu said the developer has about 500 acres in Selangor, Johor Baru and Kuala Lumpur that would eventually be developed into 20,000 residential and commercial units. Chiu added that it has plans to launch properties worth some RM2.5 billion in the next 18 months.

Meanwhile, this acquisition is the third sale of commercial land in the 5,000 ha federal administrative capital. According to master developer Putrajaya Holdings, some 300 acres have been zoned as commercial land.

Putrajaya Holdings chief executive officer Azlan Abdul Karim said it has plans to sell some 10% of the commercial plots. Current market values range between RM350 psf and RM400 psf. To date, it has closed deals amounting to between RM80 million and RM90 million for about six acres of land.

“The first two commercial plots were sold to a Hong Kong international property investment group, TRW Group. They will also be offering office towers with gross built-ups of 450,000 sq ft and 600,000 sq ft respectively,” said Azlan.

According to Azlan, it is also in talks with several local and foreign parties, including from Hong Kong and the US, to sell more commercial land.

“We want to bring in the services from third-party developers to create more vibrancy and excitement in Putrajaya. Offering projects such as office towers will further boost commercial space here and attract the private sectors to set up more offices,” he said, adding that it is also open to joint ventures with the third-party developers.

To date, Putrajaya Holdings has completed 22,000 units of government quarters as well as 5,000 residential units. For the government office buildings, it has completed some gross built-up space of about 30 million sq ft as well as six commercial buildings with a gross built-up of about four million sq ft.

It is currently in talks with several local and foreign parties to sell one of these commercial buildings, the 26 Boulevard office building in Precinct 3, which has occupancy levels of about 90%.

The 12-storey building has a gross floor space of about 516,668 sq ft and is valued at more than RM200 million.

By theSun (by Loo Pik Kwan)

Bliss Avenue buys Putrajaya land for RM24m

OFFICE TOWERS: Chiu (right) pointing out certain aspects of the proposed commercial office development to Azlan after signing the sales and purchase agreement for the Putrajaya land

PUTRAJAYA Holdings Sdn Bhd, the master developer of Malaysia's administrative capital, has sold a parcel of land in Putrajaya to Bliss Avenue Property Development Sdn Bhd for RM23.7 million to develop into a business, residential and office centre.

Bliss Avenue is a wholly-owned unit of Malaysia Land Properties Sdn Bhd, which specialises in developing condominiums, service apartments and office buildings.

Malaysia Land Properties in turn is the Malaysian unit of Hong Kong Stock Exchange-listed Far East Consortium, a property developer in Hong Kong and owner of the Sheraton Subang, Sheraton Labuan, Dorsett Regency Kuala Lumpur hotels and the Hartamas shopping centre.

Malaysia Land Properties vice-chairman Tan Sri David Chiu said the company will build 14-storey office towers and commercial lots on the land with construction due to begin in four months at a construction cost of RM100 million.

Tenants include government ministries and agencies as well as private companies occupying over a gross floor area of 39,105 sq m.

"The project will be financed by internally generated cash and bank borrowings and we want to keep the project for the long term by leasing it out at RM4-RM5 per sq ft," Chiu told reporters in Putrajaya yesterday after inking the deal.

Putrajaya Holdings chief executive officer Azlan Abdul Karim said the land transaction is the third commercial land sale in Putrajaya and the first sale to a local firm.

"We need to bring in private property players to build commercial units so that Putrajaya will be evenly developed and not become a purely government project," said Azlan.

Azlan said the company cannot develop the 5,000ha Putrajaya alone and need to bring in private property developers either local or foreign and forge alliances either on a joint venture basis or a straight buy and sell agreement.

"By doing so, serious buyers can come in and we have had enquiries from US investors," said Azlan.

The land measuring 6,300 sq m is located opposite the Palace of Justice and next to the city's town council, the Putrajaya Corp, in Precint 3.

Azlan said the company has identified 121ha of land in Putrajaya which can be developed into commercial projects, but it plans to sell 10 per cent of the land gradually and in small portions and has not set any time frame in doing so.

"So far we have sold 2.4ha of land worth RM90 million and construction is on-going," said Azlan.

Since its establishment in 1995, Putrajaya has developed 70 per cent of government office buildings with a gross built-up area of almost 30 million sq ft and six commercial buildings with a gross built-up area of about four million sq ft.

Putrajaya Holdings has to date built 70 per cent of the government quarters comprising 22,000 home units.

It had just started building public and commercial units with an initial launch of 25,000 units.

Azlan said the development of Putrajaya is similar to Kuala Lumpur's, where there is no time limit for it to be fully developed and is entirely dependent on market forces.

Putrajaya Holdings' shareholders are Petroliam Nasional Bhd, Khazanah Nasional Bhd and Kumpulan Wang Amanah Negara.

Meanwhile, Chiu said Malaysia Land Properties has 10 projects under planning and construction stages in Malaysia, worth RM2.5 billion, to be carried out over the next 18 months. This involves 20,000 units of residential and retail properties.

To date, Malaysia Land Properties has a total landbank of 202.4ha most of which are located in Kuala Lumpur and Johor Baru.

On another matter, Azlan said Putrajaya Holdings has not received any letter of offer from UBG Bhd which is interested to buy Putrajaya Holdings' 20 per cent-stake in Putrajaya Perdana Bhd. Putrajaya Perdana is Putrajaya Holdings' construction arm.

"We have not decided ... and any offer must first go to the board," said Azlan.

By New Straits Times (by Zaidi Isham Ismail)

Millionaire havens

A look at where the most expensive properties in the country were bought

Of the total 812 transactions done in Selangor during the 2005/2006 period, over 40 per cent were residential in nature, worth RM583.57 million

Where are the country’s most expensive deals being made? The answer is literally at your feet … if you happen to live in the rich, fully developed state of Selangor.

This is according to statistics gathered from the Ministry of Finance’s latest “Million Ringgit Property Deals” report covering the 2005/2006 period.

Prepared by the Valuation and Property Services Department (VPSD), it found out that 812 transactions, each worth at least RM1 million, were made in the state during the period to the tune of RM2.38 billion.

Given the fact that 2,023 big-time residential, commercial, industrial, development land and agricultural deals worth RM7 billion were signed during the two years, it means Selangor was responsible for 40 per cent of the transactions by volume and 34 per cent by value.

In second spot was Kuala Lumpur, with 442 deals worth RM1.97 billion, followed by Penang with 208 deals (RM897.67 million) and Johor with 163 deals (RM441.91 million).

The other states that also saw million-ringgit transactions were Sabah (72 deals, RM177.19 million), Kedah (66 deals, RM304.21 million), Perak (64 deals, RM282.92 million), Negeri Sembilan (59 deals, RM109.73 million), Malacca (49 deals, RM169.35 million), Sarawak (39 deals, RM59.97 million), Pahang (26 deals, RM176.96 million), Terengganu (18 deals, RM24.19 million) and Kelantan (five deals, RM13.87 million).

Commercial trades
In Selangor, change of ownership involving million-ringgit plus commercial real estate accounted for 164 units worth RM446.74 million.

According to the VPSD report, the state’s three- and four-storey shophouses were the most popular during the period under study.

Prices paid were RM1.05 million for a unit in SS22 Damansara Jaya, RM2 million for one in SS2 PJ, RM3.14 million for a unit in Kota Damansara and RM3.64 million for another in Dataran Sunway.

In Klang, a two-a-half-storey shop went for RM4.9 million while a shopping complex in Taman Selayang Utama, in the district of Batu, changed hands for RM120 million.

Development deals
Development land dealings also made up a sizeable chunk of the million-ringgit plus transactions.

By volume, Penang had the most trades with 85 during the period, including a residential site in Persiaran Kelicap, which changed hands for RM109.17 million; vacant plots in Jalan Kelawei in George Town for RM90.44 million; land in Batu Ferringhi for RM25.96 million; as well as in Jalan Rozhan in Seberang Prai Tengah for RM13.27 million.

However, with a total cumulative value of RM533.65 million, their value was lower than the 84 transactions done in KL for a total of RM679.12 million.

These were in the Jalan Bukit Setiawangsa area of Ulu Klang (RM58.51 million), Jalan Tun Razak (RM51 million), Jalan Kuching (RM28 million), Jalan Benteng (RM19.2 million) and Jalan Ampang (RM18 million).

In Selangor, 64 plots of development land were traded for a total of RM274.71 million.

Residential take-up
Selangor was the star-performer in this sector compared to the other states.

Of the total 812 transactions done during the 2005/2006 period, over 40 per cent (or 337) was residential in nature, worth RM583.57 million.

Of these, one-third (103) were in Sungai Buloh, the area where many highend housing enclaves are situated. Among them: Valencia, Sierramas West, Sierramas Resort Homes, Damansara Indah Resort Homes, Sunway Damansara, Sierra Damansara, D’Villa, Tropicana Golf and Country Resort, Mutiara Damansara, Damansara Utama Petaling, Aman Suria Damansara, SS22 and SS22A of Damansara Jaya, Taman Bukit Rahman Putra, Bandar Utama Damansara, Sunway Rahman Putra, SS2 Petaling Jaya, Ara Damansara, Damansara Idaman and Damansara Indah Country Resort.

The properties traded were mostly detached houses, two- and two-and-a-half-storey terraces and semi-dees as well as vacant bungalow plots.

In terms of prices paid, the VPSD report noted that it was between RM1.15 million for a semi-detached unit in Valencia to RM3.38 million for a detached house in Tropicana Golf and Country Resort.

The Damansara district also saw a significant 53 deals, with detached houses transacted at RM1.18 million in SS3 PJ, RM1.75 million in Subang Saujana, RM2.15 million in SS19 Subang Jaya and RM2.2 million in SS1 PJ.

Other districts that recorded residential deals worth at least RM1 million each were Ampang, Ulu Klang, Shah Alam, Petaling, Cheras, Batu, Putrajaya, Klang and Kajang.

In KL, detached houses in Damansara Heights were transacted at between RM3 million and RM13.96 million, while those in Pantai Hills went for between RM2.5 million and RM4.5 million.

In Ampang, the range was from RM1.6 million to RM4 million and in Taman Tun Dr Ismail, from RM1.83 million to RM2.68 million.

KL’s terrace houses also found their way into sevenfigure territory, with two- and two-and-a-half-storey types in Desa ParkCity going for between RM1 million and RM1.33 million while units in Bangsar Baru found new owners for between RM1.04 million and RM1.66 million.

In the condominium category, units in Mont’ Kiara Damai went from RM1.16 million to RM4.75 million, while in Bukit Bandar Raya’s Sri Penaga project, it was from RM1 million to RM1.65 million.

Near the Petronas Twin Towers in the city centre, units at Hampshire Park were traded at between RM1.12 million and RM1.27 million.

By New Straits Times (by Zoe Phoon)

Plenitude launches Tebrau City Residences

MIXED development firm Plenitude Bhd has launched Tebrau City Residences, the first serviced apartments project in Johor Baru, which is integrated in a "city within a city" concept at Tebrau City.

Tebrau City Residences, comprising 1,088 units, is designed for modern city living adjacent to three international retail malls - AEON Jusco mall and the upcoming Tesco and IKEA outlets.

The company said in a statement that the launch is for the first parcel with 472 units and the rental yield is projected at 8 per cent, according to executive chairman Chua Elsie.

She said it is expected to continue to increase in value due to land appreciation in the area and within the Iskandar Development Region.

By Bernama

Bio Big Valley set for second phase

RM10bil development to be ready by 2013

KUALA LUMPUR: Bio Big Valley Lojing, a mega development in Gua Musang, is gearing towards its second phase, which would involve a development cost of about RM10bil.

This phase, due to be completed by 2013, will be undertaken jointly by a local consortium comprising Mofaz group of companies, Solarin Holdings (M) Sdn Bhd and Telemont Sdn Bhd.

Mofaz group president Mohamed Fauzy Abdul Hamid said the development was the first in the region to adopt the carbonless and total renewable energy concept.

Mohamed Fauzy Abdul Hamid

“We are building a green city adapting wind turbine technology, which could generate up to eight megawatts of power and supplemented by solar energy, together with high-tech waste management for zero emission,” he told reporters after signing a memorandum of understanding with Solarin president and group executive chairman Datuk Naser Ismail and Telemont chief executive officer Kho Ah Tee.

Lojing, located along the Kg Raja-Gua Musang highway with altitudes ranging from 300m to 1,800m above sea level, is ideal for all kinds of hot and temperate crops, and livestock, plantation, medical services, agro- and eco-tourism related activities.

“At present, the ongoing activities are reforestation for sustainable forest development, large-scale integrated organic farming, husbandry of Dorper sheep, and planting of fruits and herbs,” Fauzy said, adding that the second phase on 1,800 acres would comprise a medical health resort, indoor winter resort, golf course, racing circuit, water sports club, residential properties and a five-star hotel.

According to Kho, the consortium would implement the same development concept in China and the Middle East by June.

“We are planning for the development to be near China’s Guangzhou, together with a Chinese partner, “ Kho told StarBiz, but declined to elaborate.

The development, which is expected to create about 150,000 jobs, would be partly funded by the United Nations’ (UN) human development division.

Naser said UN would provide the project funding of about RM2bil over the next two years but added that the funding mechanism, be it in the form of a loan or grant, was being finalised.

By The Star (by LAALITHA HUNT)

Purcon banks on its construction experience

Tan: Our own construction arm helps keep our properties' prices lower

PETALING JAYA: With more than 30 years of experience in the construction industry, Purcon Group is confident of doing well with its maiden highend project in Bukit Segambut, its general manager Angie Tan said.

“Despite it being our first such project, we have already been involved in the construction of several high-end properties, including semi-dees and bungalows in Glomac Bhd’s Aman Suria and the show unit in Changkat Kiara by Plenitude Kiara Bhd,” she told theSun.

The freehold development, known as Laman Damansari, will comprise 16 units of 3- storey semi-dees and two units of 3-storey bungalows, priced between RM1.6 million and RM3.8 million, with built-ups from 3,800 sq ft to 5,800 sq ft.

Scheduled for launching by the end of this year, the project has a gross development value (GDV) of RM40 million.

Tan said the properties would be built based on a zero-defect concept, where purchasers would require minimal renovations. “Although we aim to launch the project in November, we expect the show house to be ready for viewing in August,” she added.

The group recently completed 53 units of 3 ½-storey shop offices in Serdang Raya and is currently developing Taman Impian Putra, its flagship project in Bangi, Selangor.

The113-acre Taman Impian Putra has been receiving a good response since the leasehold township’s first phase, which consists of 1 ½- and 2-storey link houses, was first launched in 2005. Since then, the developer has also introduced 1-storey and 2-storey shop lots and recently launched 365 units of 2-storey terraces and 58 units of 2-storey semi-dees in its latest phase.

Priced at RM178,988 onwards, the terraces have built-ups from 1,658 sq ft while the semi-dees with built-ups of between 2,653 sq ft and 2,690 sq ft are priced from RM358,888. About 60% of the units have been sold to date and the developer is planning to launch low- and medium-cost apartments in future phases. The township has a GDV of some RM200 million.

Tan said the group has about 300 undeveloped acres in its landbank but is constantly on the lookout for potential tracts for development. “Being a small developer, we usually go for land the bigger players may forego. This way, we do not have too much competition in the market and can cash in and cash out quickly,” she said. Purcon has land in Sungai Petani, Kedah; Jasin, Melaka; Kuala Pilah and Gemas, Negri Sembilan; and Tangkak, Johor.

She also said that having its own construction arm benefits the group, as they would be able to save on construction costs and price their properties lower by up to 10%. “We are be able to save on building time while offering better products and maintaining quality control,” she added.

On the property outlook for this year, Tan said the demand for medium-end properties is still there but the high-end property market might be slightly slower due to economic uncertainty.
“However, it also depends on the location of the project, as highend developments located in affluent areas do well because of steady demand,” she explained.

By theSun (by Yap Yew Jin)

Malaysia's first property summit

KUALA LUMPUR: The first Malaysian Property Summit 2008, organised by the Association of Valuers & Property Consultants in Private Practice Malaysia (PEPS), will be held on Wednesday at the Crowne Plaza Mutiara hotel, Kuala Lumpur.

The conference will feature eight speakers from the Malaysian property industry: Datuk Abdullah Thalith Md Thani, Datuk Mani Usilappan, Dr Ting Kien Hwa, Eric Ooi, Christopher Boyd, Allan Soo, Goh Tian Sui and Previndran Singhe.

According to Eric Ooi, managing director of Knight Frank Malaysia, a total of up to 200 registrants are expected to participate in the conference. “It has always been at the back of our minds to organise an event like this and we hope to turn it into an annual event,” said Ooi.

The conference will begin with an overview of the Malaysian property market in 2007, followed by a series of topics, including: REITS Performance for 2007 & Outlook for 2008, High-end Condominium Market Performance for 2007 & Outlook for 2008, and Investment & Retail Market Performance for 2007 & Outlook for 2008.

“The objective of the conference is for people who are in touch with the market to share their knowledge, opinions and views of future trends with industry players and the public. At the end of the day, it is important for everyone involved to plan for their future, and this knowledge would assist them,” said Ooi.

The participation fee is RM988 per person and RM950 per person for members of PEPS. The conference begins at 8.30am and ends at 5.30pm. For enquiries and registration, call the PEPS Secretariat at 03-2145 0952.

By theSun (by Yeong Ee-Wah)

The Paradigm to be WCT Land’s first high-rise project

An artist’s impression of The Paradigm

WCT Land Bhd ushered in the New Year with a bang: it recently gave an exclusive preview of its first high-rise development called The Paradigm, billed as “The rising icon of Petaling Jaya”.

The Paradigm, with a gross development value (GDV) of about RM1.26bil, comprises The Escalade Corporate Office Towers, The Ascent Corporate Office Suites and The Paradigm Mall.

The Escalade will have four blocks of office towers with a net lettable area of 1.4 million sq ft. It will feature column-free floor plates, full-height glass panels for natural light ventilation, energy-saving devices, quality finishes and ample parking bays.

The Ascent is a 30-storey office suite with 350,000 sq ft net lettable area while The Paradigm Mall, with 700,000 sq ft net lettable area, will showcase the latest in fashion and retail. There will be a unique shady walkway designed for alfresco dining and entertainment that are in vogue in trendy cities all over the world.

The Klang-based company has traditionally been a township developer with projects such as Bandar Bukit Tinggi 1, 2 and 3, the luxury golf-front residences of d'Banyan Residency in Kota Kinabalu and the new AEON Bukit Tinggi shopping centre, which is Malaysia's largest AEON shopping centre with about 200 tenants and over 5,000 car parking bays.

The new AEON Bukit Tinggi gives Klang Valley folk an opportunity to enjoy a one-of-its-kind, one-stop shopping and entertainment centre.

WCT Land Bhd chairman Datuk Chua Soon Poh said the company always tried to set new standards and benchmarks in all that its endeavours.

“The Paradigm is an iconic development that challenges the norm and embodies our values and spirits, giving rise to a dynamic expression of quality and spectacular architecture,” he said.

He added that the project would have multiple ingress and egress points. Several highways such as the Federal Highway, NKVE, Sprint and Penchala Link serve this development.

Chua said the current buoyant office market was witnessing a trend of businesses relocating from the city centre to Petaling Jaya. “Due to the availability of quality buildings, the occupancy rate in Petaling Jaya has increased to 89%. We believe this to be the start of a future trend.”

He said the company had a total land bank of about 1,369 acres with total GDV of RM5.2bil, of which projects worth about RM3bil in GDV had been launched. “We are looking for more land as well as joint ventures,” he added.

General manager Stewart Tew said the company was targeting public listed companies and multinational companies for its office towers. “We plan to do some road shows overseas, including in the Middle East,” he said.

The company has also successfully launched the d'Banyan @ Sutera, (within the Sutera Harbour Marina, Golf & Country Club) comprising 14 units of three-storey detached villas called Petrusa (five spacious bedrooms with attached bathrooms) that boast a designer swimming pool each, large double-volume living area, and formal and informal dining areas.

The bedrooms look out onto the golf course with either city or sea views. There are covered and open terraces for relaxation.

There are also 48 units of the Aurea (2½-storey semi-detached villas) and 60 units of the Citrifolia (two-storey superlink villas), both with four bedrooms with attached bathrooms, as well as designer swimming pool for selected units and large living areas.

All the houses come with the Sutera Preference Share Golf Individual Membership.

By The Star (by S.C.Cheah)

REITs confident of 6% growth

MOST real estate investment trust (REIT) managers are confident that the Malaysian REIT industry will remain resilient and a minimum yield of 6% is achievable this year despite a looming recession in the United States.

The REIT managers believe properties under trusts are generally more protected in terms of value compared with properties held by individual owners, as they were mostly locked-in or leased to established clients or multinationals which normally would not default on their rentals.

Axis REIT Managers Sdn Bhd chief operating officer Stewart LaBrooy said the target of 6% yield was not a problem for Axis REIT as it had a strong clientele base and that the trust was managed well.

Axis REIT, the first trust to be listed in Malaysia (in August 2005), focuses on acquiring quality office space and industrial properties.

LaBrooy said that while achieving good yield was important, it was only one measure of the performance of a REIT.

Menara Axis in Petaling Jaya - one of the stable of properties under Axis REIT

“For instance, financial backers and institutional investors view a trust favourably if it has a stable of quality properties that are in demand and consistently occupied by established tenants. There should also be a steady pipeline of properties to be placed in the REIT in the near term,” he noted.

LaBrooy said such properties not only provided good yields but also achieve attractive capital gains on their disposal.

“Undeniably, the ability of REIT managers to enhance the properties under the trust is also extremely important,” he said.

On the availability of “A” grade quality office space to be placed in a REIT, LaBrooy said there were a few locations like the KL City Centre (KLCC) and KL Sentral that could be considered in this premium category.

“We have some “A” grade office space in the Klang Valley that attracts international investors, but we need more,” he said, adding that some high-end developers were aware of the shortage and were planning to build more such properties in the near future.

“We have been talking to a few developers to see if we could team up with them to enhance properties that would appeal to such investors.”

Asked if there was sufficient land in the Klang Valley and the city centre to develop such top-grade premises, he said there was still enough land, especially in the KLCC area.

LaBrooy said there were also some large properties under government-linked companies and private owners in strategic locations that could be enhanced to provide “A” grade office and commercial space.

“But we need far greater education on the benefits of properties placed under REITs, especially to local investors, the authorities as well as developers and private owners, before any action can be taken to enhance these properties,” he said.

A local REIT expert agreed with LaBrooy that some landowners were sitting on a goldmine but were not reaping the benefits via good yield and capital gain because of the lack of knowledge about REITs.

He said Malaysian commercial and residential properties, especially in the heart of the city, were still very attractive to foreigners, if packaged well.

He also agrees that the exposure of Malaysian REITs to the US downturn would be insignificant.

“We don't see a huge negative impact on the REIT industry here as the debt exposure of US investors in the local REIT is small,” he said.

He added that Malaysia's REIT industry, while attractive in valuation, had yet to attract US investors because of the size of the trusts.

He also said a yield of 6% for Malaysian REITs was “very attainable,” despite worsening economic conditions in the US.

“But it (the yield) also depends on which sector of the REIT investors park their funds. Some stocks are more risky while others are more defensive by nature,” said the expert.

He said that for instance, office and industrial REITs were generally more defensive than hotel REITs, which were prone to cyclical demand.

A foreign-based REIT consultant said that currently, Singapore and Malaysia dominated the South-East Asia REIT market with a total market capitalisation of RM72bil.

He expects the market to grow steadily over the years with more investors – local and foreign – considering REITs in their portfolio.

“There's still good potential for the growth of REITs in these two countries which are registering yields of 3% to 4% (Singapore) and 6% to 7% (Malaysia), despite the subprime and mortgage woes in the US.”

The REIT consultant said Malaysia's REIT industry was still at the early stage of development, with many issues needed to be ironed out to make it more competitive. This include legislative changes, gearing limitations, tax breaks and foreign ownership.

“But in Singapore, the REIT industry is at the start of the take-off stage in terms of growth,” he said.

He said many of the REITs in the republic had asset size worth billions of dollars, which was another plus point for the country to attract local and international investors.

Currently, the largest Malaysian REIT in asset size is Starhill REIT, whose market capitalisation broke the RM1bil mark at the time of listing in December 2005.

But SunCity’s REIT, which is yet to be named, is highly likely to surpass Starhill REIT in asset size.

The RM3bil to RM4bil REIT is slated for listing on Bursa Malaysia in the second half of this year.

An analyst with a local research house said if this happened, SunCity’s REIT could set a new record that would raise the profile of local properties under trusts, especially in the eyes of foreign institutional investors.

A local REIT adviser concurred with the foreign REIT consultant that Malaysia's REIT industry was still at the early stage of development with good upside potential in property value and yield over time.

He said based on the Macquarie's eclipse model (see chart), the country's REIT industry was at stage 2, while Singapore at stage 3, which implies strong and steady growth.

By The Star (by Danny Yap)

Gamuda Land wows visitors with Jade Hills

GAMUDA Land held a “sneak preview” of its latest high-end residential development, Jade Hills in Kajang, during the recent Chinese New Year festive period.

It was a pleasant surprise for those who attended the “Spring Festival” event on Feb 16. The renowned property developer had quietly but efficiently built four splendid show bungalows, an Oriental-style clubhouse, and big entrance statement with the usual water features.

It also put up a large air-conditioned tent to welcome prospective buyers and other visitors.

It has taken the company several months to show off its Jade Hills. Like its other signature developments (Kota Kemuning, Bandar Botanic, Ambang Botanic and Valencia), Gamuda Land took great pains to create a premier gated and guarded community with a resort-style clubhouse.

Hey, presto! Within a few months it has created a few small lakes, built a nice road and planted some trees to spruce up the rather dreary entrance to the development.

This project is tucked inside a small road whose entrance is right in front of the Silk Highway interchange to Kajang town. It is very accessible to Kuala Lumpur. In fact, it took me a mere 30 minutes to reach Jade Hills from USJ via Puchong.

Golf buggies ferried visitors from the car park at the clubhouse to the big tent where food and handicraft stalls delight families with calligraphy writing, kite making, and traditional Chinese tea-pouring and kuzheng performances. Visitors have to climb a flight of stone steps to a courtyard to view two of the four show houses. A lion and drum beating performance was held here.

The drum beating performance at Jade Hills. In the background are the bungalow.

The 258-acre freehold project will have 793 units to be built in 12 phases over eight to 10 years. The density is a low three units per acre.

The “prestigious lifestyle” development concept should appeal to people with deep pockets who yearn to live in this part of Kajang. The neighbour is the well-known high-end development Country Heights, where many corporate figures and politicians live.

With the Gamuda name, purchasers should be confident enough that the developer Jade Homes Sdn Bhd (a subsidiary of Gamuda Bhd) will be able to deliver a product of top quality.

Jade Homes will have 12 theme gardens with walkways and recreational facilities at your doorstep. There will be three lakes: Misty Lake, Willow Sweeps and Water Spring – quite romantic-sounding names.

Two of the themed precincts, White Bark and Evergreen, are currently open for purchase.

The White Bark Precinct will have 50 bungalows with six distinct designs overlooking a lake, garden and the clubhouse. One of the designs, the 60ft x 125sq ft Pearl Jade (seven units of premium bungalow), has land size of 8,037 to 8,469 sq ft and 5,249 sq ft built-up area. There will be 5+1 bedrooms. The selling price is RM2.1mil to RM2.3mil.

The 55ft x 100ft White Jade (22 deluxe bungalows) has 6,485 to 11,157 sq ft land and 4,562 and 4,599 sq ft built-up areas. It will also have 5+1 bedrooms. The selling price is RM1.6mil to RM2mil.

The 50ft x 100ft Emerald Jade (21 bungalows) has land size of 5,289 to 8,268 sq ft and built-up areas of 4,165, 4,222 and 4,368 sq ft. It has 4+1 bedrooms and is priced from RM1.5mil to RM1.8mil.

Another interesting design is the Calligraphy Maze (41 units) which is a two and three-storey Garden Terrace with 4+1 bedrooms and priced from RM680,000 to RM1mil. The land areas range from 2,080 to 6,107 sq ft and built-up areas between 2,900 and 3,700 sq ft.

The unique feature is its open front lawn (no gate in front with low perimeter fencing at the back garden). Other features are a covered car porch for three cars, large living space, wet and dry kitchens, pond features for selected designs and the houses built around a cul-de-sac.

Each property comes with a free club membership worth RM10,000. Monthly club subscription fee is RM70 per membership plus government tax. The clubhouse will boast a 50m lap pool, children's wading pool, spa pool, three tennis courts, gymnasium, multi-purpose function room, steam and sauna room, games room, children's playground and even a Chinese teahouse.

The project's general manager Choong Chee Yoong said there had been “strong interest” in Jade Hills mainly because of its good accessibility and lifestyle concept.

“It is strategically located, with six to seven golf courses and several famous international schools such as the Alice Smith International School in Seri Kembangan and the Australian International School at the Mines Resort City in the vicinity,” he added.

By The Star

Nusajaya vibrant city by year 2011

BANDAR Nusajaya in the Iskandar Development Region (IDR) will come alive in 2011 when the projects and activities planned for the township takes shape.

UEM Land Sdn Bhd, through its subsidiary Bandar Nusajaya Development Sdn Bhd, is the master developer of the sprawling 24,000-acre integrated urban development of Nusajaya.

With Nusajaya being one of the five key flagship zones of the IDR, UEM Land is in an advantageous position to reap the fruits of the development of IDR into a major regional economic hub under the Ninth Malaysia Plan.

According to UEM Land managing director Wan Abdullah Wan Ibrahim, the company has become more active in the last three years and implemented various changes to its plans for the township.

Wan Abdullah Wan Ibrahim

“We have been successful in putting Nusajaya back on the map with new activities and branding. We expect the momentum to pick up these two to three years,” he told StarBiz.

The blueprint for Nusajaya has been changed to cater to the present and future needs of the population of 500,000 when the development is completed in the next 20 to 25 years.

There are seven growth catalysts for Nusajaya – the residential component, a 2,400-acre international resort, 600-acre-EduCity, 700-acre MediCity, 688-acre Puteri Harbour waterfront development, 320-acre Johor State New Administrative Centre and 1,300-acre Southern Industrial and Logistics Cluster (SiLC).

Nusajaya will have 100,000 residential units eventually, and so far, 16,000 houses have been built and occupied, including those built by other developers.

Nusa Idaman and Horizon Hills are two residential developments launched in the last two years, the latter a joint venture with Gamuda Bhd.

The latest project launched was the East Ledang resort residential development, which comprises 861 upmarket residences including super link terrace houses, semi-detached units and bungalows. The project is expected to generate RM1bil in gross development value.

Wan Abdullah said the Puteri Harbour development would have its marina ready to receive its first boat in August, complete with a clubhouse and promenade.

An artist’s impression of Puteri Harbour

Being the “pride and joy” of Nusajaya, he said Puteri Harbour had attracted substantial interest from other parties for joint development and also from property purchasers.

The company has announced its joint venture with Limitless LLC of Dubai World to develop Residential North of Puteri Harbour with exclusive canal housing and retail facilities.

Wan Abdullah said RM60mil had been spent on the first phase infrastructure to build the inner lagoon. The second phase, expected to cost RM100mil, would complete the outer lagoon and hence establish the waterfront.

The initiatives to inject life and vibrancy of a thriving waterfront development into Puteri Harbour include the provision of retail and dining facilities, and efforts to have The School of Performing Arts and School of Culinary Arts located at the harbour front.

On the progress of the other components, Wan Abdullah said the Johor State New Administrative Centre was 97% completed and would be occupied by the state departments this year.

“EduCity will be home to international schools and universities and will elevate Nusajaya as an international education hub,” he added.

Meanwhile, the Customs Immigration Quarantine and Port Clearance Complex are slated to be ready by 2010. The scheduled opening of Singapore's two integrated resorts in 2010 will also benefit Nusajaya greatly.

“We are positioning Nusajaya to complement Singapore, especially when both offer very different environments.

“Singapore's spiralling property prices will be the push factor for a growing interest among Singaporeans for properties in Nusajaya,” Wan Abdullah said.

He said although some areas in Johor, especially the medium-cost housing market, were still facing supply overhang, demand remained strong in strategic locations such as Nusajaya.

“We expect demand to pick up further with the imminent opening and operations of Johor's new administrative centre and as more of our catalyst developments, such as the SiLC and Puteri Harbour, mature in the next few years.”

Besides Singaporeans, the company is also targeting the big expatriate population in the republic and buyers from other regional markets for its wide spread residential and commercial properties.

“Prices of properties in our development are only a fraction of that in Singapore and other cities in the region. Investors are seeing the potential value offered by Nusajaya,” Wan Abdullah said.

By The Star (by Angie Ng)

UEM Land plans to enter regional market in three years

Horizon Hills is one of the components in Bandar Nusajaya

UEM Land Sdn Bhd aims to have a regional presence by 2011 when it expands its wings offshore to other emerging markets such as Vietnam, Indonesia and India.

“With our key development, Nusajaya in Johor, reaching the tipping point by that time, the company will have the capability to venture into new markets to widen its earnings base,” said managing director Wan Abdullah Wan Ibrahim.

“Going by our parent company UEM Group Bhd's long list of developments and track record, we have consistently delivered our projects on time and with great quality.

“The group has also established an international presence, which the company can leverage on in its offshore aspirations.”

Locally, UEM Land is looking at adding new profit centres to achieve geographical diversity in areas of focus, including several opportunities in the Klang Valley, which should be revenue-generating in 2009 if they materialise.

Meanwhile, the proposed restructuring of UEM Group involving UEM Land taking over the listing status of UEM World Bhd in September will raise the profile of UEM Land.

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

The restructuring exercise, worth RM2bil to RM3bil, will set the stage for the company to emerge as a long-term property player.

“We are putting in place all the key ingredients for UEM Land to realise its vision to be a global community builder,” Wan Abdullah noted.

He said that being a key performance index-driven company, UEM Land would put in gear proactive programmes to ensure its projects were planned and delivered on time and meet the company's strategic targets.

Plans are also afoot to position UEM Land as a customer and stakeholder-centric organisation.

“We want to provide a new experience for our buyers and stakeholders, including shareholders, government officials and business associates.

“The Culture of Excellence programme that kicked off last year will spearhead this new initiative company-wide,” he said.

By The Star

UEM Land to raise RM875m

UEM Land Sdn Bhd is looking to raise RM875 million through a five-year syndicated term loan facility to finance its projects at Nusajaya in Johor, its top executive said.

The soon-to-be-listed property unit of UEM World Bhd is the master developer of Nusajaya, Malaysia's biggest property project.



"We're going to the market to seek some funding for working capital requirements," managing director Wan Abdullah Wan Ibrahim told Business Times in an interview.

Senior general manager of finance, Mohd Zakir Omar, said the company is in the midst of arranging a syndicated term loan from a consortium of banks.

"At the moment about six (banks) have expressed interest, most of them local. It's just a short -term financing, we're looking at a period of maximum five years," he said.

The funds would mainly be for UEM Land's projects that are already in the market and new ones that will be launched in the next one or two years, he added.

Wan Abdullah expects to be able to secure the loan "very soon".

UEM Land is working on various projects covering about 1,619ha of its landbank in Nusajaya. Some of these will take about four years to complete while the longer-term ones will take about 10 years, he said.

"There's also another 2,428ha, some of which we already have plans for, which will be put in the market over the next five to 10 years," said Mohd Zakir.

This includes the Horizon Hills project, a resort development covering 486ha which should be completed in about 10 years.

While UEM Land's focus is predominantly on Nusajaya, it is also looking to buy some properties in Selangor and Penang, possibly on a joint-venture basis with institutions that own land, said Wan Ibrahim.

The company has no immediate plans to go abroad, but is keeping a keen eye on potential projects it can undertake, especially in the Middle East.

"We have an active international business division looking for business opportunities, but I think the timing is not quite right for UEM to spend so much time out there. There is just too much at stake in Nusajaya. We have to do that well," Wan Abdullah remarked.

He said UEM Land may perhaps be able to establish a good overseas project sometime in 2010.

Meanwhile, the company is in various stages of discussion with potential joint-venture foreign partners for further development at Nusajaya. These include developers from the Middle East, Australia and East Asia.

"In terms of strategic partners, I think before the end of this year, we can see two (foreign) partners coming," he said.

The company also expects to be able to announce a tie-up with a local partner, to develop Puteri Harbour, in the second quarter of this year, he added.

UEM Land already has tie-ups with a few partners, such as Limitless LLC, a unit of Dubai World, to build waterfront homes in Puteri Harbour; and with Gamuda Bhd for development of Horizon Hills.

By New Straits Times - Business Times (by Adeline Paul Raj)

Several factors make Furniweb attractive

PETALING JAYA: Furniture-webbing manufacturer Furniweb Industrial Products Bhd is deemed attractive due to its leading position in the industry, the steady demand for its products, low gearing, stable margins and the proposed listing of its subsidiary in Vietnam.

Research house M&A Securities Sdn Bhd, in a recent report, said the impending listing of Furniweb Manufacturing (Vietnam) Co Ltd on the Ho Chi Minh City Securities Trading Centre would give the group direct access to the Vietnamese capital market to tap funds to grow and enhance its business.

Furniweb has a wide product range, including covered yarn, industrial webbing and seatbelt webbing. Its products are available in more than 40 countries.

The second board-listed company currently operates from four factories in Selangor and another four in Vietnam.

According to M&A Securities, Furniweb commands 20% to 25% share of the global market. It is the largest covered elastic yarn producer in the country.

The research outfit believes that continued investment in research and development would help Furniweb capture new markets in Malaysia and globally.

Its earnings growth has been consistent at 10% a year for the past three financial years, thanks to rising global demand from the furniture, apparel and motor vehicle sectors.

Moving forward, the company's strong distribution channel, which includes Europe, China and the United States, should help the company penetrate new markets, M&A Securities said.

The research house is forecasting Furniweb's sales to reach RM105mil in the financial year ending Dec 31.

On Friday, it reported sales of RM93.9mil for FY07. Net profit for the period stood at RM8.7mil or 9.60 sen per share against RM7.8mil or 8.72 sen per share the previous year.

Investment risks associated with the company include a lack of long-term contracts with its customers which are made up of end-users, agents, distributors and suppliers, as well as low barrier to entry into the industry.

By The Star (by Yvonne Tan)

Impiana KLCC Hotel & Spa to get RM100m annexe

IMPIANA KLCC: Halim (right) Choo eagerly await the completion of the hotel's second phase of development

KLCC Property Holdings (KLCCP) Bhd, which owns Impiana KLCC Hotel & Spa at Jalan Pinang in Kuala Lumpur, plans to invest around RM100 million to build a 20-storey building adjacent to the property.

"This is the hotel's second phase of development. The L-shaped building will be constructed on the rooftop of the existing carpark, starting from level six.

"We hope it will be operational by 2010," said Impiana Hotels & Resorts Management Sdn Bhd (IHRM) group general manager Mohamad Halim Merican.

IHRM, founded by Datuk Seri Ismail Farouk Abdullah of the KAB Group, is managing the four-star 335-room hotel, which opened in December 2005.

Under the development plan for the new building, KLCCP is planning to include business suites and residential-type accommodation or service apartment facilities.

It will also add an additional 180 rooms, which will be larger in size, a club floor and double volume private lounge, and a specialty roof-top restaurant.

"We will provide the technical aspects and consultancy in terms of hotel design. The construction will be undertaken by KLCCP," Halim told Business Times in an interview in Kuala Lumpur recently.

"We feel it's the right time to expand with all the construction hypes in the vicinity.

"Room sales are growing and we are looking at opening up to new markets," he said.

The bulk of Impiana KLCC's business comes from the Petronas Group, and from business and leisure travellers from the US, Europe and Malaysia.

Halim said in terms of occupancy, the hotel closed at 75 per cent in 2007 generating income of RM23 million.

There was a gross operating profit of almost 30 per cent for KLCCP from the hotel last year, he said.

"We have seen growth in our average occupancy and room rate.

"Phase two will definitely complement the existing property, and also other assets under the company," he added.

Impiana KLCC general manager Sean S.L. Choo said the hotel aims to provide five-star services on par with international standards.

In doing this, it hopes to maintain consistency in service, security, food quality and product delivery.

"Phase two will create another market for us.

"We are targeting corporate travellers, the MICE market and demand created by the KLCC convention centre," Choo said.

Choo said to move up another notch, the hotel will need to have bigger rooms and better facilities, and more meeting rooms.

IHRM provides professional management and advisory services plus technical services for upgrading of hotels, resorts and recreational facilities including spas.

It owns and operates Impiana Cherating Resort in Kuantan, Pahang, and Impiana Phuket Cabana Resort and Impiana Samui Resort in Thailand.

Besides, Impiana KLCC, the company also manages Impiana Casuarina Ipoh, Perak, for the state government, and their own brand of spa, known as Swasana Spa.

By New Straits Times (by Sharen Kaur)

MTD Capital units to be bought out

MALAYSIAN engineering and construction firm MTD Capital Bhd signalled today a buyout bid for its two listed property and toll-road units.

MTD Capital suspended its shares from trade, saying it would soon announce a large deal that would involve a buyout of property and infrastructure firm Metacorp Bhd and tollroad company MTD Infraperdana Bhd.

MTD Capital owns 72.3 per cent of MTD Infraperdana, the country’s second-largest toll-road concessionaire, and 75 per cent of Metacorp, which specialises in property development and waste management, according to Reuters data.

MTD Infraperdana has a market value of almost RM800 million (US$250 million), while Metacorp is valued at RM295 million. The shares in both these firms have also been suspended.

MTD Capital said today its shares would be halted from trade pending “announcement of a material transaction which involves its two public-listed subsidiaries, namely Metacorp Bhd and MTD Infraperdana Bhd, being taken private”.

By Reuters

Hap Seng sets out to make a splash

Better known in Sabah, the diversified company is working on exciting projects that should strengthen its presence in Peninsular Malaysia

THE next two years mark a busy period for Hap Seng Consolidated Bhd as the developer works on new projects to strengthen its presence in the real estate development scene in West Malaysia.

While Hap Seng Consolidated has yet to become a household name in property in the Klang Valley, the developer is well known in East Malaysia, as one of Sabah’s largest township and masshousing developers. It has over the past 30 years, completed more than 10,000 units of property with a gross development value (GDV) of RM2 billion.

Hap Seng Consolidated currently has two projects in the Klang Valley that it is proud of — the complete refurbishment of Menara Hap Seng (formerly MUI Plaza) along Jalan P Ramlee in KL’s city centre and the ongoing development of D’Alpinia in Puchong.


Teh (left) and Ng in front of Menara Hap Seng

“We are focusing on property development in West Malaysia, but will continue developing our housing projects in Sabah simultaneously. Although we are a new player here, we have exciting new projects lined up for launch throughout 2009. We purchased three plots of land in KL last year and are currently in negotiations for more parcels in the Klang Valley,” said Datuk Paul Ng, chief executive of Hap Seng Land (a wholly owned subsidiary Hap Seng Consolidated).

Ng told Propertyplus that the purchases for the three parcels — one along Jalan Tun Razak, and two on Old Klang Road, were finalised in 2007. “We recently submitted the development plans for 1.27-acres of freehold land in Jalan Tun Razak for approval and it will be a RM360 million high-end condominium development. Location-wise, it is very strategically situated next to the Royal Selangor Golf Club and near KLCC,” he said.

Meanwhile, one of the tracts in Old Klang Road is located opposite the Pearl Point Shopping Centre. A RM165 million mixed-commercial complex of office suites with retail offerings is planned for the 2.62-acre leasehold tract.

The second Old Klang Road parcel is a 1.8-acre freehold tract adjacent to Plaza Prima. “We will be building a RM130 million high-end condo there. Although it won’t be the same type of luxury homes as the ones proposed for Jalan Tun Razak, we hope to elevate the standards of lifestyle living in Old Klang Road and turn it around, similar to how Sentul and Pantai Dalam have been rebranded,” Ng offered. Construction works and launches for the three projects are scheduled to take place in 2009.

D’Alpinia
Although the first phase of the RM300 million D’Alpinia is halfway into construction, the project has yet to be launched as Hap Seng will be selling the entire project under the build-then-sell (BTS) concept. The first batch of units is expected to hit the market by yearend.

The 76-acre leasehold D’Alpinia has four phases offering terraced homes, semidees, “superlink” homes, townhouses, bungalows and condominiums. Phase 1A is 60% complete and comprises 66 units of 2-storey terraced homes and 88 units of 2-storey semi-detached cluster houses. The terraced homes have built-up areas of 2,200 sq ft and land areas of 22 ft by 75 ft, while the semidees have built-ups of 2,300 sq ft and land areas of 35 ft by 65 ft. No pricing is available at the moment.


D'Alpinia's Phase 1A has already received 2,200 registrants

“We wanted to support the government’s BTS concept as it ensures that buyers get the product they paid for. In Sabah, we have always honoured our promise to buyers and delivered our products on time,” said Ng. The development is slated for completion by 2012.

Hap Seng Land senior marketing manager Choy Kim Seng added that they have received 2,200 registrants for phase 1A alone. “We add value and offer people products they want. The development has automatic gates, CCTV surveillance and alarm systems. This is so buyers don’t have to fork out more money on renovations,” Choy said.

Choy said that Hap Seng has also acquired a plot of land adjacent to D’Aplinia. The 12- acre tract, which fronts the LDP, is to be developed into an integrated commercial hub with an estimated GDV of RM200 million.

Meanwhile, Hap Seng Land West Malaysia general manager Allan Teh said the entire D’Alpinia project would be gated and each phase would be landscaped according to four themes – Balinese Retreat, Western Chic, Oriental Haven and Tropical Sanctuary.
“There will be a 2 km jogging track around the project and a large central park with a feature pond so that residents can even go fishing,” Teh said.

Menara Hap Seng
The RM60 million makeover of MUI Plaza into Menara Hap Seng was recently completed and the building looks ready for business. Hap Seng Consolidated bought the building in 2004.

Menara Hap Seng Sdn Bhd deputy general manager Matthias Loui said rentals for the offices are at RM6 psf, and from RM5 to RM15 psf for the retail podium.

“We are 98% tenanted and are waiting for some final tenants to move in. We expect to hit full occupancy in one month as we have reserved some lots on the retail podium for specific tenants.
We also have conference facilities with function rooms for rent on a daily or half-day basis. This is good for companies who want to launch new products, hold meetings and training sessions,” Loui offered.

Ng said that from March to April, Hap Seng would be putting together a team to provide 6-star service to tenants, visitors and guests.

“We will have fully uniformed valets, doormen and concierge to provide a service not offered by any other office buildings. Based on the feedback we are getting from our tenants, we can say they are excited and seem to welcome this service. To prove our commitment to our customers, the costs for these services will be absorbed by Hap Seng,” Ng said.

Menara Hap Seng is located opposite Shangri-la Hotel and behind Menara Weld. The first three floors of the 22-storey office building is the retail podium, comprising a grand lobby, lounge areas, cafés and restaurants offering casual to fine dining, and speciality stores. Each floor has a space of 13,000 sq ft and the minimum space for lease is 900 sq ft.

While property development is one of Hap Seng’s core businesses, the group is also involved in credit financing, trading (fertiliser, automotive, building materials and petroleum), quarries and plantations.

The group is one of the largest oil palm plantation companies in Sabah and an authorised dealer for Mercedes-Benz and Smart vehicles in West Malaysia.

Hap Seng’s impressive Mercedes-Benz Autohaus showroom is located on a 31,000 sq ft site at the intersection of Jalan Sultan Ismail and Jalan P Ramlee, right next to Menara Hap Seng.

Future
A potential site for township development in West Malaysia is Hap Seng’s 500 acres of freehold plantation land in Sungai Pelek, Sepang. “We are waiting to see the development of the West Coast Highway.

The highway will not only shorten the travelling time to Sungai Pelek by half, but we believe it will open up the area, as the Kesas and Guthrie Corridor have done for their surrounding areas,” Ng said.

The group has a total undeveloped landbank of 2,900 acres with the bulk of it in East Malaysia.

By theSun (by Allison Lee)

The Oval apartments launching in June

A model of The Oval high-end apartments.

KUALA LUMPUR: GuocoLand (M) Bhd, formerly Hong Leong Properties Bhd, will launch The Oval high-end apartments in the Kuala Lumpur City Centre (KLCC) enclave by June.

Located along Jalan Binjai, The Oval will have an estimated gross development value of over RM800mil and total saleable floor area of 586,356 sq ft.

Located on 2.14 acres, the project comprises two 41-storey blocks, East Tower and West Tower, with 70 units in each block.

Chief executive Paul Poh said 30% of East Tower had been sold after a sales preview in Hong Kong last month.

Most of the units are Sky Villa, offering a built-up area of 3,750 sq ft. Each block also offers eight Mansionary Villa, measuring 7,500 sq ft each. The price ranges from RM1,200 to RM1,900 per sq ft.

Four Mansionary Villa had been sold, Poh said during a media tour of The Oval yesterday.

The Oval is scheduled for completion by the second quarter of next year and foreigners are expected to make up 60% of the buyers.

Another sales preview will he held in Indonesia and Singapore next month.

On the possibility of selling West Tower en bloc, Poh said GuocoLand would keep options open depending on market conditions.

Paul Poh

“We believe the selling points for The Oval are potential capital upside of the property, the good KLCC view and the quality of residences.

Meanwhile, GuocoLand would be launching by June, Damansara City, a mixed development project on 8.5 acres consisting of about 2.2 million sq ft of residential, commercial and retail space.

It also planned to build 42 luxury condominiums with an estimated total saleable floor area of 224,000 sq ft on the 3,030 sq ft land it recently bought in Changkat Kia Peng.

By The Star

GuocoLand's The Oval KL project gets good response

POPULAR: Construction of The Oval KL, with a gross development value of RM800 million, has begun and is expected to be completed next year

PROPERTY developer GuocoLand (Malaysia) Bhd said it has received good response for its new high-end residential development called The Oval Kuala Lumpur, especially from foreign buyers.

Located on Jalan Binjai - less than a kilometre from the Petronas Twin Towers - the development will be officially launched in the middle of this year.

Already, some 30 per cent of its units have been taken up.

"The bookings are mainly from our existing customers and friends. About 60 per cent of the buyers are foreigners, including Italians, Japanese, Singaporean and South Koreans," GuocoLand Malaysia chief executive Paul Poh told reporters in Kuala Lumpur yesterday.

To date, the developer has conducted a road show in Hong Kong and plans are afoot for one in Singapore and Indonesia.

Construction of The Oval KL, with a gross development value of RM800 million, has begun and is expected to be completed next year. Buyers will be able to move in in the second quarter of 2009.

The Oval KL comprised two blocks - the East and the West Towers. It has two distinct offerings, one of which is the Sky Villas, which occupy level 2 to 32 and measure 3,750 sq ft that span half of one floor. This means that there will be only two Sky Villas on each floor.

The other offering is the Mansionary Villas (7,500 sq ft), which occupy an entire floor so that they can have a full 360-degree view of city centre. So far, four out of the total 16 Mansionary Villas have been booked.

Even though property prices surrounding the Petronas Twin Towers have risen substantially lately, Poh said The Oval KL's selling price will remain at between RM1,200 per sq ft and RM1,500 per sq ft, depending on the levels.

"From now until the official launch, our price structure will remain the same. We will review the price after that," Poh said.

By New Straits Times (by Goh Thean Eu)

YTL Corp Q2 net jumps 24pc

YTL Corp Bhd has reported a 24 per cent increase in net profit for the second quarter ended December 2007 as the performance of its utilities, cement manufacturing and trading and property businesses improved.

YTL Corp posted RM328.47 million net profit in the second quarter on a seven per cent increase in revenue to RM1.52 billion. Six-month net profit and revenue stood at RM688.4 million and RM3.09 billion respectively.

"The utilities division posted solid profit growth of 8.5 per cent and the cement division has made significant strides in implementing our regional expansion strategy, completing the acquisition of Zhejiang Lin'an Jin Yuan Cement Co Ltd in China during the quarter under review," YTL Group managing director Tan Sri Francis Yeoh Sock Ping said in a statement released yesterday in Kuala Lumpur.

Zhejiang is the largest cement manufacturer in Lin'an and one of the top five cement suppliers in the Hangzhou market.

"The group's focus on international investment opportunities, correlated with our core competencies, continues to enable us to diversify our revenue base while concurrently mitigating geographical and single-industry risks," he added.

Yeoh said the group expects ongoing improvements in technical efficiency to help ease the impact of rising costs as the year progresses.

The biggest contributor to the group was its power division.

YTL Power International's net profit grew 10.5 per cent to RM245.54 million in the second quarter compared with the previous corresponding quarter.

The improved performance was due to higher contributions from the group's subsidiary, Wessex Water Ltd, power stations in Paka and Pasir Gudang, and PT Jawa Power - its 35 per cent-owned associate in Indonesia, which owns a 1,220-megawatt power station in East Java.

YTL Cement Bhd's second quarter net profit rose 35 per cent to RM48.12 million, due mainly to higher demand for cement from the construction industry, improved operational efficiencies and better prices.

YTL Land & Development Bhd's net profit in the second quarter, meanwhile, almost doubled to RM5.63 million from a year ago, contributed mainly by new phases under development, including "The Centrio" at Pantai Hillpark and "The Saffron" in Sentul.

YTL E-Solutions Bhd's six-month net profit, however, dropped 7.5 per cent to RM2.31 million because of higher operating expenses.

YTL Corp has declared an interim gross dividend of 15 per cent, YTL Power an interim tax-exempt dividend of 7.5 per cent, and YTL Cement an interim gross dividend of 20 per cent for the period.

By New Straits Times

YTL posts Q2 profit of RM189mil

It declares interim dividend of 15% per share

KUALA LUMPUR: YTL Corp Bhd registered RM189.33mil in net profit for the second quarter ended Dec 31, which was about 24% higher than the RM152.98mil posted a year earlier.

Revenue grew 7% to RM1.52bil from RM1.42bil. Earnings per share improved to 12.61 sen from 10.44 sen.

For the first half year to Dec 31, the group achieved RM413.94mil in net profit on 10.3% growth in revenue to RM3.1bil.

YTL Corp also declared a second interim dividend of 15% per share.

Group managing director Tan Sri Francis Yeoh said the utilities division posted solid profit growth while the cement division had made significant strides in implementing its regional expansion strategy.

The latter completed the acquisition of Zhejiang Lin’an Jin Yuan Cement Co Ltd in China during the quarter under review.

“The group’s focus on international investment opportunities correlated with our core competencies continues to enable us to diversify our revenue base, whilst concurrently mitigating geographical and single-industry risks.

“We expect ongoing improvements in technical efficiency levels will also be integral in controlling the impact of rising costs as the year progresses,” Yeoh said in a statement posted on the group’s website yesterday.

Its utilities arm YTL Power International Bhd reported net profit of RM245.54mil for the second quarter ended Dec 31, an increase of almost 11% from RM222.23mil in the previous corresponding quarter.

Revenue inched up to RM1bil from RM976.6mil.

The increases were due to better performance in all businesses, including wholly-owned Britain-based Wessex Water Ltd, power stations in Paka and Pasir Gudang, and PT Jawa Power, a 35%-owned associate company in Indonesia.

YTL Power declared a first interim dividend of 7.5% per share.

YTL Cement Bhd’s net profit rose almost 30% to RM43.84mil for the three months ended Dec 31 from RM34.01mil in the previous corresponding period.

Revenue increased to RM315.54mil from RM261.92mil previously.

The company said the growth in revenue and profit was mainly due to higher demand for cement in the construction industry, improved operational efficiencies and better selling prices during the period.

YTL Cement also declared a first interim dividend of 20% per share.

The group’s property unit YTL Land & Development Bhd recorded net profit of RM4.35mil between October and December last year, up 53% from RM2.83mil previously.

It chalked up sales of RM89.59mil for the quarter under review, compared with RM27.05mil year-on-year, contributed mainly by new phases under development, namely The Centrio at Pantai Hillpark and The Saffron in Sentul.

YTL E-Solutions Bhd’s net profit for the second quarter ended Dec 31 grew 15.87% to RM1.33mil from RM1.15mil previously.

Revenue expanded 20% to RM7.25mil for the quarter under review from RM6.04mil.

By The Star