Going for community building concept

INSTEAD of merely building properties, developers should embrace the concept of building communities by envisioning the process from a “community builder’s” viewpoint.

According to Abbey Woods Sdn Bhd chairman and managing director Datuk Wong Choon Kee, this is a more holistic approach to building as the builder evaluates how the development could impact people’s lives as he constructs.

“Every developer must optimise construction standards by offering quality facilities, better security measures and higher standard of living, because they are part of the process of building a nation.

“Sustainable property development must be practised as we move forward, as we should remember that building is always about the future, and the future is something we borrow from our children.

“Developers must start looking seriously into eco-friendly designs and buyers and investors and buyers can support this by making educated purchases,” Wong said.

He reminded developers that they have to do their best to provide property buyers with the best value they can possibly enjoy.

“The new generation of homebuyers is extremely savvy and hands-on on real estate matters; demanding good craftsmanship, quality designs, prime locations and the best value for every ringgit spent.

“As a property developer, I would like to see more innovations in the property projects developed in the country in terms of architecture and design, and emphasis given to quality,” Wong said.

He observed that the country would continue to face strong competition “as every other country is racing to pull in foreign real estate investors.”

“We have to raise the country's rating in various aspects, including quality of life index and international-standard property offerings. We have to capitalize on our advantages, including having one of the lowest property prices in the region, a comparable cost of living and transparent land and property ownership laws.”

On the market outlook, Wong said the local property market would continue to offer attractive durable dynamics, especially in the residential property sector, which would continue to dominate the volume of transactions in the market.

Malaysia is experiencing major development and economic growth, giving rise to an upturn in its tourist, residential and commercial property markets.

“Many international real estate investors are considering Malaysia as a highly lucrative option for three main reasons – well-priced properties, strong economy for sustainable growth and yields over the medium to long term.

“Property development in Malaysia has been encouraged by political, economic and geographical stability and it is one of the safest countries to live in.” Wong said.

Its modern lifestyles with exposure to western culture, great healthcare and infrastructure facilities, as well as a technology savvy society, make the country an attractive investment destination.

Wong said the Government’s My Second Home Programme and recent relaxations for foreign investment had made it easier for foreigners to purchase property and get financing locally.

“Malaysia also has a young age profile where 60% of the population is below 30 and the size of the average household is still largely at 4.3 persons per home. As the population matures, it should drive increased household formation, which will spur property demand.

The feel-good strategies, including the exemption of the real property gains tax, the lifting of Foreign Investment Committee (FIC) approval and removal of the limit of the number of property loans allowed for non-residents, will also help stimulate the property sector,” he added.

By The Star

Property on investors’ radar

GIVEN the volatility in the equity and financial markets since late last year, investors, both retail and institutional, are looking for safer places to park their money. Inflationary pressure also plays a role in where the money goes.

Property is an asset class that, in recent times, has entered the radar of investors seeking capital gains, yields or as a hedge against inflation.

For example, in tandem with economic growth, the property markets of Ireland and Spain were booming until recently while in metropolises such as Hong Kong, London, Mumbai, New York, Shanghai, Singapore and Sydney, commercial and residential property prices have risen due to their roles as global or regional financial hubs.

However, this asset class is complex, as street and market sentiment count for a lot. For residential properties, investment is based heavily on location while for commercial properties, economic growth and business sentiment are important factors. Supply and demand also influence the price, capital gains and yields.

Property prices in certain markets might have levelled off or fallen on account of the mortgage crisis in the US and the subsequent turmoil that has ensued but if ever there was a time to purchase property it might be now in those markets that have seen falling prices such as in the US.

The US Federal Reserve's move to cut the federal funds rate - the key interest rate that influences consumer credit, has also fuelled a property boom in Asia where interest rates have been kept low in tandem with the Fed's.

Due to this comparatively low-interest rate regime across most of East and Southeast Asia, there is a good spread or gap between returns and financing of properties.

Australia on the other hand is facing higher interest rates but due to the lack of supply in the residential component of the property market, there might be a property boom although not till two years down the road when pressure for housing builds up, according to a February report by an economist with an Australian bank.

The equity markets in Australia have also not been spared the turmoil that has hit other markets, he said, adding that this has provided added impetus, outside of the high interest rate regime, for investing in property.

He said most investors do not chase yield but capital gains when looking at property. A property boom may be around the corner due to the lack of housing supply in cities such as Melbourne, Perth and Sydney in recent times, he said.

Hall Chadwick Asia Sdn Bhd chairman Kumar Tharmalingam said the general rule of thumb in managing portfolio of investments is 20% in cash, 30% in property and 50% in equities and bonds.

“In the current scenario, the 30% investment in property is very stable because rental is determined over entire term period and not based on the market's current volatility,” he told StarBiz.

Kumar said owing to the recent volatility in the equity markets, it might not be a good idea to take positions, “but there may be opportunities to take profit.”

He said the consequences of the financial crisis in the US would be higher borrowing costs, as banks turned cautious on borrowers. “We're going to be affected by the sub-prime crisis by association due to tightening of credit worldwide,” Kumar added.

He said capital gains on property are also seen as a hedge against inflation. “Its a good time to own property if you've debt-free real estate or existing debt on easier terms that is also fully-led,” Kumar said.

Regroup Associates Sdn Bhd executive director Paul Khong said investors would only look at sizable investment grade-type commercial properties when looking for yields or capital gains. “Luxury residential properties led the way in transactions until a year ago when commercial properties started to see transactions in the RM1,000 psf range. Before that it was between RM500 psf and RM600 psf,” he said.

Since then we've seen values of commercial properties soaring, Khong said, adding that until the advent of real estate investment trusts and their emphasis on yields, most investors did not acquire properties to look for yields.

“Now, we're looking at an industry average net yield of between 6% and 7% within the Klang Valley for choice office properties while it is 8% for industrial properties,” he said.

By The Star -StarBiz

Branding Alam Jaya

Barisan Elite's RM200 million Alam Jaya Commercial Centre in Bandar Puncak Alam, Shah Alam, hopes to draw the interest of Klang Valley folks

IT is not only the ultra high-end projects by big players that create an impression, but sometimes niche projects by lesser-known developers manage to catch the eye. One such project is Barisan Elite Sdn Bhd’s RM200 million Alam Jaya Commercial Centre (AJCC) situated in Bandar Puncak Alam, Shah Alam, Selangor.

The 46-acre leasehold mixed development comprises five products — AJ Wallstreet, AJ Boulevard, AJ Gallery, AJ Serene and the AJ Hypermarket, something that its general manager Ong Yen Lee (pix) says was planned from the start when the land was purchased five years ago.



"We wanted to offer a product unique to this area as the surrounding developments are mostly residential townships,” says the accountant turned entrepreneur. “Although the surrounding townships have their own commercial parcels, they usually cater for the neighbourhood with mostly clinics, hairdressers, launderettes and coffee shops. At AJCC, we want to attract not only the surrounding business, but draw in the crowds from KL, Subang Jaya and Petaling Jaya,” adds Ong.

Barisan Elite is a collaboration between three professionals in the various fields of architecture, property development and finance. The group’s first project in 1993 was Taman Usahaniaga in Bukit Mertajam, Penang. That project with 121 units of 4- storey shopoffices and 484 units of apartments was developed under Matrix Development & Construction Sdn Bhd.

The group subsequently undertook the development of other mixed industrial, commercial and residential projects of Taman Industri Teguh in Penang (1997), Taman Bangi Jaya in Semenyih, Selangor (1998), Taman Harmoni Indah in Balakong, Selangor (1999) and Taman Impian Indah also in Balakong (2002).

Its most recent project is the RM250 million Taman Industri Alam Jaya also in Bandar Puncak
Alam. This 300-acre project is adjacent to AJCC and was completed in 2004 with 152 industrial lots, 367 units of 2-storey terraced homes, 284 units of shophouses and 380 apartment units.

Ong said the group never had difficulty in delivering projects, even during the 1997 economic crisis and often relied on the partners’ strong business networks to market their commercial products.

AJCC
The first phase, AJ Wallstreet has yet to be officially launched, but a takeup of over 85% has been achieved since Barisan Elite started marketing units mid-last year. The modern façade AJ Wallstreet comprises 115 units of 2-storey shopoffices with spacious built-ups from 2,797 to 7,338 sq ft. The shopoffices are priced from RM318,000.

“We have not advertised much and are surprised by the good response as this proves that word-of mouth is an effective marketing tool. Some 15% are repeat buyers from the previous project, Taman Industri Alam Jaya, which has been fully sold. Also, our prices are competitive.



We know of similar shop offices in this area that are being marketed from RM400,000,” said Ong. AJ Boulevard (pix), the second product to be offered, was launched in January this year and to date 25% of the 262 units of 2-storey “streetmall” shops have been sold.

These shops have built-ups from 1,441 to 2,929 sq ft and are priced from RM249,000 to RM620,000. “The streetmall concept is not a new one as it has been popular for many years in China.

It provides patrons a comfortable shopping environment with a covered pedestrian walkway and
boulevard, making promotions and activities possible regardless of the weather," said Ong. She added that streetmalls provide an alternative for tenants who cannot afford to set up businesses in the luxury shopping malls with high rental as streetmalls have lower operating costs.

“To ensure full occupancy and vibrant business atmosphere, we will be managing the tenancy on
behalf of the buyer for a period and guaranteeing a 7% return of investment per annum for two to five years,” said Ong.

AJCC is strategically located at the fringes of Sungai Buloh, Klang and Shah Alam and is accessible via the Guthrie Corridor Expressway, Shah Alam-Batu Arang Highway, Jalan Meru and Jalan Kuala Selangor.

“In the near future, this area will be easily connected to Petaling Jaya, Mutiara Damansara. Damansara Perdana and Kuala Lumpur using the proposed New North Klang Valley Expressway. The fact that our project is served by many highways gives buyers confidence as one of the key criteria to look into when making an investment is road infrastructure,” said Ong.

AJCC is also near established townships such as Bandar Puncak Alam, Shah Alam II, Taman Puncak Alam, Taman Industri Alam Jaya, Desa Coalfields and Bandar Saujana Utama. There are
also many upcoming projects in this area such as Sunway Alam Suria, Alam Budiman, Cahaya SPK and Puncak Perdana.

“As AJCC is a new project, I have been asked whether there will be too many shops, but I do not feel that this is an issue as investors are forward thinking. The project is surrounded by matured townships and by 2010, the area is expecting a 700,000 household population. There will be added demand for properties when the nearby Universiti Teknologi Mara begins its first intake of students in 2009,” she said.

Future
To be launched in July are 800 units of middle-range serviced apartments in AJ Serene and five units of 2-storey standalone showrooms in AJ Gallery. Units in AJ Serene are priced from RM90,000 with average sizes at 850 sq ft.

“The apartments are targeted at factory supervisors and executives in the industrial area, as well as UiTM lecturers and students. It would be a convenient living choice as eateries and shopping areas are just a walk away,” said Ong.

Meanwhile, the developer has positioned AJ Gallery as an ideal showroom for businesses to display their products. “Food and beverage outlets or even interior design companies can opt to set up offices here as there is high visibility, individual compounds and private car parking. The unit prices are from RM1.6 million with built-ups of 7,000 sq ft.”

As for AJCC’s final component, the AJ Hypermarket, Barisan Elite is in the midst of finalising the
agreements to have a hypermarket chain set up business by 2009. The entire development is expected to be completed by end- 2009 and the developer is planning for a mega opening carnival to create a publicity buzz.

In the pipeline for Barisan Elite is the development of a 300-acre land adjacent to AJCC. Project development for the commercial and industrial lots are set to commence by end-2008.

“We will be continuing with the Alam Jaya brand name as we aspire to have the whole area known as Alam Jaya. For the future project, there will be more industrial products than commercial because there is strong demand for medium-size factories in this area and we are going to capitalise on that. We still have a waiting list of buyers wanting to buy units from our previous development,” said Ong.

By theSun (by Allison Lee)

Are you landlord material?

“I HAVE to chase tenants for the rent.” “My tenants trashed the place.” These are common complaints that put people off the idea of becoming landlords. The inability to deal with these problems effectively results in sleepless nights, a feeling of helplessness and a situation where “the landlord is in effect paying the tenant to live in his property”.

So what’s involved in becoming a landlord and what are the tricks of the trade? Three seasoned landlords and a property manager give their take on how they manage tenant issues and remain die-hard landlords and property managers.

Have a cash cushion
If you want to be a landlord, don’t count on your tenants paying for all the expenses involved in the ownership of a property. You need to account for the costs of maintenance, lack of rental when the property is vacant and occasional failures to collect rent. The interviewees concur that they expect their properties to be vacant for two months a year when calculating the returns on investment.

“First, make sure that your income will be able to cover the loan repayment. Hence you can still manage during the months when your property is vacant,” says John Lee (not his real name), CEO of a Mesdaq-listed company. He has seven years’ experience in managing properties and lets out his five medium-range condominiums. Having started out with a bad investment in bungalow land in Sungai Long/Bandar Mahkota Cheras, he says the failure did not deter him. He has since reaped significant gains in property investment, netting about RM1 million from flipping properties.

In dealing with late payment of rent, the key is to act promptly, the landlords say. Renesial Leong, author of Property Jewels, stresses that a landlord must be prompt in acting against errant tenants. “If the tenant is one week late, the landlord should make a courtesy call to find out the reason for the delay,” she says. “I had a tenant who lost his job and could not pay the rental in the first few months of the tenancy agreement. So, I sat down with him to discuss his predicament. I suggested that perhaps it would be better for him to move into a smaller place, like a room. He took my advice and moved out in the third month.”

One way to reduce the risk of non- or late payment is to ask for advance rental. “For high-end properties, there is an emerging trend where company-tenants pay rental in advance. Some embassies choose to pay a year in advance and the rental could be quite high, like RM30,000 per month,” says Tan Joon Kai, head of property management at Eng Lian Enterprise Sdn Bhd. “By paying in advance, however, the tenant may ask for a discount if the landlord is not an established player in the market.” Tan has been managing the group’s portfolio of residential properties, shoplots and shopping complexes (Bangsar Shopping Village I and II) for the past seven years.

How much should a landlord spend on preparing a property and maintaining it? There are no hard-and-fast rules on how much to allocate, and it mainly depends on the tenant’s profile. “For students, I would just ensure everything is functional and clean. For high-end tenants, I may spend more, like allocate up to half a month’s rental to do up the property,” says Leong.

“I do not specifically put a maximum value for maintaining my properties. I believe that regular servicing will keep the maintenance costs low. As a rule of thumb, I may not spend more than RM5,000 a year to maintain a high-end property, and not more than RM3,000 for mid-range properties.

“In the higher-end market, tenants tend to prefer their own loose furniture such as beds and lounge sets,” says Tan. “So, we would usually just spend on the basics, namely the kitchen appliances and cabinets, bedroom wardrobe, air-conditioners and curtains and railings.”

When you target the lower-income group, the rule is to keep it simple. David Chong, owner of Infohan Sdn Bhd, a property management and investment company, rents out his threestorey 20-room bungalow in Petaling Jaya to factory workers. “I leave the rooms bare except for lights and fan.”

Chong bought the property below its market value and the seller had renewed the lease for 99 years. “I am continuing to look out for such buys,” he says. He also owns several commercial and landed residential properties, and has been investing since the mid-1990s.

“There is a lot of cleaning to be done in low-end properties. Hence, I visit my tenants and remind
them to be civic. It is important to talk to them in a friendly way,” says Chong. “I budget 5% of the rental income for maintenance and cleaning costs and hire a professional cleaner to clean the bungalow on a weekly basis.”

It’s a people business
In evaluating whether you are landlord material, remember this: While you shouldn’t need to constantly be on the watch, you shouldn’t be twiddling your fingers, waiting for the money to come in. Landlords need to find time to keep in touch with their tenants. “This is a people business where you must build rapport with your tenants. One must like working with people to become a good landlord,” says Leong.

“My current stable of tenants includes students, expatriates, McDonald’s, Tai Thong Restaurant, Secret Recipe and Angel Cake House. I support them in whatever way I can, such as giving business to them,” she says. “You see, building rapport and acting promptly on problems are the keys to managing tenants well.”

Chong finds the problem of collecting rent from the lower income tenants manageable. “Only about 5% to 10% of my tenants may be late in paying,” he says. “It is important to visit them immediately after payday.”

“In order to minimise problems in collecting rent, from the onset, you must be firm about your rules, and then build a rapport with your tenant along the way,” says Lee of middle-income tenants. “Send them gifts during festive seasons and be responsive to problems. Sometimes, I prefer to collect the payment personally to remain visible to them. Check the utility bills frequently to ensure your tenants are settling them promptly. Remind them immediately if any bill is overdue.”

For high-end units, Tan of Eng Lian says, “We have some expatriates, particularly the younger ones, who do not take the trouble of handing over units in good condition. So, it is absolutely vital to be diligent in checking the inventory listing when the tenants move out and deduct all repair costs from the deposit.”

If you lack the time, you can engage someone to handle the work. “It is advisable to engage somebody to help you manage if you have more than 20 properties because it can be very time-consuming,” says Leong, who employs two full-time staff to manage her tenants. “The fee to the property manager would be 9% to 10% of the rent collected for low-end properties and 7% to 8% for highend properties.

“In addition to this, you must have a team of people to help you such as lawyers, property appraisers, agents, insurance companies and handymen.”

This article first appeared in Personal Money, a monthly publication of The Edge.

By theSun (by Noelle Lim)

Luxury property expo targets RM300m sales

Property show organiser Exhibition Guide (M) Sdn Bhd is targeting its Malaysia International Luxury Properties Exhibition 2008 to generate sales of over RM300 million.

The event at the Kuala Lumpur Convention Centre, which began yesterday and ends tomorrow, showcases property projects by 60 local and international property developers.

Project director S.Y. Moey said over 15,000 visitors are expected to attend the exhibition.

To date, the company has organised more than 27 property exhibitions, with each registering average sales of about RM200 million, he said.
"At this exhibition, developers are showing their new high-end properties which we expect will attract more participants to this year's show," he said at the launching ceremony.

Moey said Exhibition Guide also planned to organise the exhibition annually to create a platform for local and international exhibitors.

"For 2009, we will travel around the world to promote this luxury property exhibition," he said.

For more related information about " Malaysia Luxury Property Exhibition 2008 "

By Bernama

An Investment Opportunity - Malaysia's Luxurious Property Exhibition

Showcase the region's most Prestigious Development, Award Winning Developer Development, Super Bungalows, Super Condominium and much more..

KLCC Malaysia International Luxury Properties Exhibition
Date: 21 - 23 March, 2008

Venue: KLCC, KUALA LUMPUR CONVENTION CENTRE KUALA LUMPUR, Malaysia

Opening Times :
11:00 a.m. - 7:00p.m. ( Friday - Saturday )
11:00 a.m. - 5:00 p.m. ( Sunday )

Admission :
Free for Invited Guests, Expatriates & Public
Free Advice, meet the experts*
Free Advice on EPF Buying House Withdrawal Scheme
Free Seminar
Lucky draw end of seminar
And much more at the expo ...

A Prestigious Properties Investment Event Brought to you by :
Exhibition Guide (M) Sdn Bhd
Tel: 03-9056 3323
Fax: 03-9056 5323
Website: http://www.pieshow.com
Email: info@pieshow.com

An 'anggun' project -- L&H to build 6 bungalows in Damansara Heights

ANGGUN at Damansara Heights comprises six triple-storey bungalow houses nestled on about an acre along Jalan Dungun. Although there have been little publicity about the development by way of advertisement, two of the six houses have been sold.

The X factor of this project is its location and its concept. The project is minutes away from Bangsar and about equal distance between Petaling Jaya and the city. The second factor is the possibility of it being guarded. Two of the six houses are served by a single entrance and exit. The remaining four can be accessed by a second entrance. Essentially, the six houses hug a slope.

The development will be tropical with lots of glass to bring in the light, says William Wong.

Anggun is developed by L&H Property Development Sdn Bhd, the main shareholder in Tetap Tiara Sdn Bhd which developed Jaya One in Petaling Jaya.

Priced from RM5.8mil to RM9.3mil, Anggun is pretty much a niche and boutique development.

This means considerable attention has been paid to details and overall quality and finishing.

Featuring high-pitched roof with wide overhangings, courtyards and lavish landscapes, there are five designs located on this triangular land opposite the Lagenda condominium.

The smallest unit is on 6,000 sq ft with a built-up of 5,800 sq ft while the largest is on 10,000 sq ft and a built-up of 9,300 sq ft.

L&H executive director William Wong says the overall feel of the development is tropical with lots of glass to bring in the light.

Originally planned for a low-rise condominium, Wong says the freehold individually titled project was re-conceptualised in 2002/03. Four of the six units come with lap pool. All six come with lifts and security features.

Wong says the land was purchased in 1998 at RM170 per sq ft. Today, land prices in that location have tripled.

They paid about RM8mil for it. The cost of construction is RM350 per sq ft including consultancy fees.

Wong says his father Wong Chee Kooi, who retired from SP Setia Bhd, has a hand in the project.

“L&H actually stands for Lam and Hon, my name and my brother’s name. We are both in property development. My father is training me to run this project on my own.

“There are, after all, only six houses, not 60. Because of its niche and high-end element, he felt it was a good place to start. He has always stressed that high-end means more than just good detailing or finishes. The workmanship must be good, if not superb.

The design and layout must be functional, yet pleasing and fluid,” says Wong.

And so there is the onyx-featured wall in some units and spectacular stone works in others.

“This is our pet project. We started with a raw piece of land and although there is a slope, we have pretty much kept to the original land profile, hence the two entrances,” says Wong.

There is no equivalent English word for “Anggun”, which means beauty. It is more frequently used in Indonesian Malay than locally.

“With such a name and with so much put into this boutique-size project, quality and the best of detailing will be there. When we designed the house, we have thought of every possible use in terms of space. The man of the house would put greater emphasis on the study, the living area and the master bedroom. For the woman, it would be the kitchen and storage space.”

Blending functionality, aesthetic and space, Anggun will be ready by the end of this year. The project started in the first quarter of 2007.

Other projects by L&H include 70 units of 3-storey garden terraced housing and 104 units condovillas at Sierramas Hills (completed in 2005) and the commercial development Jaya One.

By The Star (by Thean Lee Cheng)

Of projections and revisions - SP Setia attempts to reassure investors

BLUE chip property counter SP Setia came under the harsh spotlight of investors over the week. Indeed, that's a rarity for a company, helmed by group managing director Tan Sri Liew Kee Sin. The company is well liked for its track record on strong earnings delivery and ability to turn non-prime areas into comfortable residential homes.

Stock-wise, it is arguably one of the must-haves for portfolio managers.

Still, the week revealed that no stock, blue chip or otherwise is immune from the uncertainties that are currently weighing down the market.

The trigger happened when the company indicated to analysts a week ago that it is revising sales projections from RM1.8bil to RM1.5bil. It was three months ago when the company made the initial guidance of RM1.8bil sales projection. The outcome of the lower revision for sales projection by RM300mil resulted in the counter losing some RM726mil in market value over six trading days.

The heavy selling, largely led by foreigners, compelled the company to issue another note that stressed that the lower sales target of RM1.5bil made in the immediate aftermath of the general election was based on assumption of worst case scenario in the event of delays in the formation of local councils. “Given the company’s Oct 31 year end, a delay of one to two months would have resulted in a timing difference of sales being made in FY2009 instead of FY2008,” it said.

It added that in view of the successful transition of state governments in Penang and Selangor and the pro-business stance expressed by both Chief Ministers in the press, the group is confident that its original sales target of RM1.8bil for FY2008 can still be met.

In this regard, it is of noted that the group’s sales for the first four months of FY2008 amounts to RM646mil which is significantly higher than the RM290mil recorded in the corresponding period in FY2007.

Investors were still cautious and this showed in the shares' performance the next day following the announcement.

An analyst says investors perceived the note to be one aimed at “damage control.” Still, she is confident that the group will achieve its initial sales target, adding that the concern is simply one related to a timing issue.

“Most of the delays, if any, will be recognised in FY09 as a bulk of SP Setia's launches are targeted in the second half of 2008. In any case, a delay of two months means a recognition of profit in the following financial year,” she adds.

Although 14 out of 23 analysts are maintaining their “buy” recommendation, most have revised SP Setia's target price and earnings forecast downwards.

Investors' general cautiousness can be attributed to worry that there may be a delay in the launch of Setia Vista project in Penang, an expected muted sales at Setia Eco Gardens in Johor and to some extent, the recent termination of a deal to acquire land in Cyberjaya which was perceived as a weak signal for the broader property market.

Furthermore, concerns on the macro economy and higher inflation risks are expected to reduce consumer discretionary income.

Citigroup is expecting private consumption to slow from 11.7% in 2007 to 8% in 2008, hence mass property buyers are expected to adopt a wait-and-see attitude.

AmResearch's property analyst Chong Tjen-San opines that the delay in SP Setia's launches are not due to poor sentiment on the broader property sector but more project specific issues.

For instance, he points out that SP Setia strategically delayed the launch of Setia Vista as it recently obtained approval for the release of 167 units of bumi units from Phase 1 and Phase 2 of Setia Pearl Island.

“SP Setia has done well in Penang. In the Setia Pearl project, it sold Phase 1 terrace houses for RM600,000 per unit. As for Phase 3, it sold 49 units at RM750,000 per unit. As it has additional supply from Setia Pearl and pricing was already raised quite aggressively, it had adopted a wait and see to gauge the take-up rates,” says Chong.

While the overall property market outlook is expected to grow, analysts remain cautious on the back of the global financial turmoil.

They worry that most of the price appreciation in 2007 was due to speculation and in hindsight, analysts say that the price spurt was unsustainable.

With that, many potential home buyers are holding out in anticipation of better prices.

“Investors who bought high end homes have benefited from the bullish cycle in financial markets in the last few years. With the sharp correction in markets, the purchasing powers of these buyers will also be affected,” says the property analyst.

She adds: “While there will be demand for lower to middle-class houses, buyers may hold off from purchasing high end homes. Last year, it was mainly the high end developments that drove the euphoria in property markets.”

By The Star (by Tee Lin Say)

Oilcorp unit to raise up to RM300m via AIM listing

Proceeds to be used for development of four projects

PETALING JAYA: Oilcorp Bhd’s property unit, D’Tiara Corp Sdn Bhd, is looking to raise RM250mil to RM300mil in proceeds from its proposed Alternative Investment Market (AIM) listing on the London Stock Exchange.

Oilcorp executive director Pua Yow Liang said it was still finalising the actual amount with its advisor in London, but that was the target it planned to raise.

“The proceeds will only be used for the development of the four projects that we currently have,” he told a press conference after the company EGM yesterday.

Oilcorp’s shareholders unanimously approved the company’s proposal to list its property arm on the AIM. The listing is slated to take place in May.

Pua Yow Liang

D’Tiara Corp owns D’Tiara Beach Resort in Port Dickson and has three ongoing developments – D’Tiara Office & Hotel Suites in Kuala Lumpur, D’Tiara Waterfront Resort in Pulau Indah and D’Tiara Leisure & Health Resort in Genting.

While there are no plans to undertake additional projects at present, Pua said D’Tiara Corp’s post-listing plans would be to expand its business to neighbouring countries by franchising the D’Tiara brand and resort-operation concept.

“We are in the process of identifying potential joint partners in Thailand, Indonesia and Cambodia. Perhaps we will formalise our partnerships by year-end,” he said.

On the outlook of the local property scene, Pua opined that it was still “doing well” underpinned by market expectations that the country would be able to achieve 6% gross domestic product this year, given last year’s robust performance.

“We view the current volatility as a short-term consolidation process. The take-up rate for office and residential property launches in Kuala Lumpur and the Klang Valley are still doing very well,” he said, adding that foreign investors were now more focused on Asian markets due to the subprime crisis in the US.

Pua said that in line with the AIM listing exercise, the company would conduct road shows to attract foreign institutional investors and fund managers to take up shares in D’Tiara Corp.

“This is an opportunity for foreign investors to participate in Malaysian property development,” he said, adding that the target markets for the road shows would be Europe and the Middle East.

By The Star (by Suraj Raj)

D'Tiara aims to raise RM300m in UK

D'TIARA Corp Ltd, the property arm of Oilcorp Bhd, expects to raise an estimated RM300 million from an initial public offering (IPO) in London, the UK.

D'Tiara executive director Pua Yow Liang said the money will be used to fund its projects and as working capital for the D'Tiara Beach Resort in Port Dickson, Negri Sembilan.

The actual proceeds will depend on investor interest, which will be gauged during roadshows for the IPO, Pua told reporters after Oilcorp's extraordinary general meeting (EGM) in Kuala Lumpur yesterday.

The roadshows, which will kick off next month, will cover the Middle East and Europe. D'Tiara's shares are due to be listed on the London Stock Exchange's AIM in May.

D'Tiara has three ongoing projects valued at RM2 billion: D'Tiara Waterfront Resort in Selangor, D'Tiara Leisure and Health Resort in Pahang and D'Tiara Office and Hotel Suites in Kuala Lumpur.

D'Tiara will also be posting its first-ever profits after three years of losses.

Oilcorp's shareholders approved the proposed IPO of D'Tiara at the EGM yesterday.

As part of the listing plan, Oilcorp is selling its entire interest in D'Tiara Corp Sdn Bhd for RM119.75 million in exchange for new shares in D'Tiara.

By New Straits Times (by Roziana Hamsawi)

Plan to make Penang choice MICE destination

The new state government wants to make Penang a destination of choice for meetings and exhibitions to boost revenue from the tourism industry.

It plans to improve road and air connectivity to and from Penang, in addition to the transport infrastructure within the state, Chief Minister Lim Guan Eng yesterday said.


LIM: We must make Penang the most cost-effective exhibition and conference centre in the region
"Our land port in Bukit Mertajam and sea port will also play a vital role in making Penang a logistics hub which will complement the industry for ease of distribution of exhibits and materials, within and outside the country," he said when officiating the International Industrial Expo at the Penang International Sports Arena.

"We must make Penang the most cost-effective exhibition and conference centre in the region to serve as a springboard for commercial companies to Southeast Asian companies."

Lim cited statistics from Singapore to press his argument on the MICE (meetings, incentives, conferences and exhibitions) market.

"While local statistics are not yet available, comparative statistics in Singapore points to a significantly higher expenditure by exhibition participants versus a typical ordinary tourist," he said.

"Even back in 1997, an average exhibitor spent S$2,892 (RM6,651.60) per visit, while an average exhibition visitor spent S$1,837 (RM4,225.10).

"On the other hand, an ordinary tourist in Singapore will spend only S$746 (RM1,715.80) per visit," he said.

By New Straits Times (by Marina Emmanuel)

Japan property investor folds, a subprime victim

TOKYO: A Japanese property investor has filed for court protection from creditors, the first listed company in Japan to collapse from tighter lending in the wake of the US subprime crisis.

Reicof Co Ltd said it had failed with debt of 42.6 billion yen (100 yen = RM3.21) as investments in hotels went sour.

"Financial and real estate markets have deteriorated in the wake of the subprime crisis and we were not able to sell properties or secure loans as expected," Masaki Nogami, a Reicof lawyer, said at a news conference yesterday.

Japanese banks are getting cold feet on property, analysts say, only giving 60-70 per cent of a building's value compared to 80-90 per cent a couple of years ago.

Industry officials say investors are pulling back from Japanese properties as they eye better opportunities in the United States and Europe to pick up distressed assets.

Japanese real estate stocks have been halved in value since mid-2007, also hit by troubles in the residential sector after tighter building codes were introduced.

Credit Suisse analyst Yoji Otani said many real estate firms had already revised down their earnings outlooks and more failures may be yet to come.

"Many real estate investment funds were struggling even before the subprime crisis, and the tighter lending conditions are delivering the final blow," he said.

By Reuters

Terengganu all out to woo 3.5m tourists this year

Tourist Attraction: Perhentian Island off the coast of Kuala Besut, Terengganu, boasts some of the best dive sites in Peninsular Malaysia

TERENGGANU is mounting an aggressive drive to gear up its tourism industry. Boosted by East Coast Economic Region (ECER) tourism initiatives, the state aims to target 3.5 million tourists under its Visit Terengganu Year (VTY 2008) campaign.

According to Tengku Mohd Arifin Tengku A. Rahman, head of Terengganu's secretariat for VTY 2008, the 3.5 million target is an increase from 2.8 million last year which contributed RM1.47 billion to the state's economy, up from RM1.28 billion in 2005.

To woo visitors in VTY 2008, Terengganu has lined up 25 major events, including the Monsoon Cup Yacht Racing.

"We are also pitching for our own Federation of Equestrian International horse-racing event," Mohd Arifin added in a statement.

At the same time, Terengganu is giving more emphasis to its "Crystal Mosque". Made of crystal shine glass with steel foundation, the Crystal Mosque is a part of the RM250 million Islamic Civilisation Park situated on a 23ha site.

Malaysia Association of Hotels chairman Raja Kamarul Bahrin Shah Raja Ahmad said the uniqueness in Terengganu tourism is that there is consciousness to conserve nature, despite shooting for growth.

He said the state's proactive approach to take control of development, conservation and perpetuation of handicraft as well as the environment, will create something different for Terengganu.

"The West Coast is slowly losing its culture and heritage to pave the way for development without much proper control and guidelines. I feel that Terengganu should maintain what they have done now and this should be Terengganu's trademark for the near future," he added.

To serve tourist growth, the Sultan Mahmud Airport which is located 15km from the town, will also be upgraded to an international aviation hub under ECER.

Meanwhile, chairman of the Terengganu chapter of Malaysian Association of Tour and Travel Agents (Matta) Wan Supian Wan Ishak said the state government had encouraged further developments of hotels and resorts which will in turn result in substantial increase in tourist volume from 2008 onwards.

By New Straits Times

Gamuda: No delay in double-tracking project

PETALING JAYA: Gamuda Bhd is not expected to see any delay in the implementation of the double-tracking project despite the new state administrations. In fact, works are ahead of schedule.

The senior management of Gamuda had a luncheon for analysts on Wednesday and affirmed to the investor community that it was operationally “business as usual.”

Aseambankers, in a report, noted that the Ipoh-Rawang-Padang Besar double track was still anticipated to see 15% gross margin as sufficient cost buffers had been built in.

In a report, AmResearch said the project, a joint venture between Gamuda and MMC Corp Bhd, had allocated up to 24%, or RM3bil, to bumiputra subcontractors, a third of which had already been awarded.

On another note, Aseambankers said Gamuda would take some time to finalise the sale of Syarikat Pengeluar Air Selangor Sdn Bhd to Kumpulan Darul Ehsan Bhd even though it had been indicated that the parties had agreed on the pricing, which was also approved by the Federal Government before the general election.

Overseas wise, property development in Vietnam remained unchanged despite the present high inflation and tightening of loans.

Gamuda hoped to lock-in sales of two of 10 parcels of land in Yenso, Vietnam, in the fiscal year ending July 31, 2009, Aseambankers noted.

The company's Nam Theun 1 hydropower project in Laos is currently being reviewed on higher costs of project implementation, which could result in a 20% increase in tariffs.

It also noted that the Securities Commission recently approved the proposed RM1.5bil Sukuk issue for Lebuhraya Damansara-Puchong's debt-refinancing plan.

A capital repayment by concessionaire, Lingkaran Trans Kota Holdings Bhd, was imminent following the debt restructuring, Aseambankers said.

The research house said Gamuda was on track to meet consensus expectations when it released its second-quarter results next week.

By The Star

Sutera Damansara garden community

Sutera Damansara will have linked homes, apartments, condominiums, superlinks, and semidees

LOCATED in Sungai Buloh, close to Sierramas, Valencia and Bandar Sri Damansara is OSK Property Holdings Bhd’s (OSK Property) first landed development in Petaling Jaya.

Sutera Damansara takes up 100 leasehold acres, and according to Stanley Wong (pix), senior sales and marketing manager of OSK Property, about 80 out of the 100 acres has been planned with a gross development value (GDV) of RM400 million.



A joint venture (JV) between OSK Property and Permodalan Negeri Selangor Bhd (PNSB). the
project’s first phase, Sutera Ria comprises 431 units of 2-storey linked homes. The 22ft by 75ft
homes have built-ups of 2,305 sq ft and are tagged at RM438,000. Since its soft launch early this month, the project has received more than 200 registrants. “Our target market are the upgraders from the Petaling Jaya, SS2 and Damansara Jaya areas,” said Wong.

“The concept here is to create a garden development with a green environment featuring a linear park with ponds, gazebo, jogging paths and extensive landscaping. We want to create a garden community that is cozy and nicely landscaped with a modern tropical feel,” he said.

Aside from its first phase of linked homes, Sutera Damansara will also offer apartments, condominiums, superlinks, semidees and 24 units of 22ft by 75ft shops.

According to Wong, the next phase would comprise 40ft by 80ft semidees and 24ft by 85ft superlink homes. “We’re finalising the designs for these units and targeting to launch the superlinks at the end of this year,” said Wong.

“We have already started piling work on the first phase, and we’ll officially launch it soon, when
the works have further progressed,” he said. Sutera Ria would be completed within 18 to 20 months while the entire Sutera Damansara would occupy them for the next five to six years, with another 20 acres yet to be planned.

Apart from Sutera Damansara, OSK Property has another project in the pipeline.

“We have a high-end development planned on Jalan Yap Kwan Seng, for which we have submitted the plans for approval,” said Wong, adding that the development will be a high-rise luxury condo within the KLCC area. The GDV is yet to be finalised.

One of OSK Property’s ongoing developments, Taman Sri Banyan has recently been completed. “We are applying for Certificate of Fitness (CF) now and will handover in April,” said Wong. Located in Country Heights, Kajang, the luxury bungalow project was launched in July 2007.

Out of 16 bungalow units, eight have been sold, while all 10 semidee units have been sold. The bungalow units are tagged at RM2 million each while the semidees are tagged at RM1.2 million each. According to Wong, the freehold project attracted buyers from the Klang Valley, Bukit Jalil and Kuala Lumpur areas and most of them are professionals and local businessmen.

He attributes this to the accessibility of Country Heights to Kuala Lumpur via the KL-Seremban Highway.

There will be a promotional event tomorrow at Taman Sri Banyan between 5pm and 9pm.

OSK Property’s other projects include Mont’Jade, a series of hillside bungalows in Seremban and Seremban 3, a freehold township where it recently launched 36 units of 1-storey shoplots early this month.

OSK Property’s flagship project, said Wong, is the 2,500-acre township named Bandar Puteri Jaya in Sungai Petani, Kedah.

Launched in 1999, the development is approximately 50% developed.

By theSun (by Yeong Ee-Wah)

SoHo development comes to Subang Jaya

Artist's impression of Subang SoHo

The Small office Home office (SoHo) concept has hit Subang Jaya in a big way with the upcoming
launch of Titijaya Group’s RM90 million Subang SoHo development in May.

Titijaya director Charmaine Lim Puay Fung told Propertyplus that while the SoHo concept is a current trend elsewhere in the Klang Valley, it is a relatively new one for Subang Jaya. “We thought of the concept when we were developing our other projects nearby as we saw that there were not many projects with the SoHo concept. We believe that Subang SoHo is the first project of its size and kind in SJ,” said Lim.

The 19-storey Subang SoHo sports a radical and ultra-modern façade with 448 units designed in a duplex layout. The units with split level and double volume 16 ft ceiling height have sizes from 563 to 1,086 sq ft and are priced from RM217,000. Maintenance fees are at 35 sen psf.

The 1.6-acre freehold project is open for registration of interest and Lim said the response has been good. “Since January, we have received over 800 registrants for the project and most are young professionals who can relate to the idea. They also like the location’s easy accessibility to highways and amenities,” she said.

The project is located in SS19 and is down the road from the shopping belt of Subang Jaya town centre consisting of Subang Parade and Subang Carrefour. It is also nearby to the Subang Jaya Medical Centre and educational institutions such as INTI College, Taylor’s College and Metropolitan College.

Lim said the project attracts young single people because it offers them greater privacy than renting a room. “The units can be used for work as well.

With the advances in computer software, big storage areas are not needed as a laptop is enough for everything. This appeals to entrepreneurs and businesspeople,” she said.

Further aiding the live cum work environment, is the building’s wi-fi facility for common areas and broadband ready feature.

Another attraction for buyers is that Titijaya has furnished all intermediate units. “This is an added convenience we offer. In our previous development of Tiaraville Serviced Suites development in Jalan Kemajuan, we found out that buyers favour furnished packages. They can bring their luggage and move in.

Investors can also rent the units out upon completion. It saves time and effort,” said Lim. Among the furnishings and fittings are plaster ceiling, two-seater sofa sets, kitchen cabinets, wardrobes, fridges and washing machines with dryers.

The project, which is slated for completion in 2011, will have three levels of car parking bays and a “sky club” on the rooftop. The “sky club” comprises swimming and wading pool, sky garden, tai
chi and yoga zone, reflexology path, BBQ function deck, garden deck and children’s playground.

Accessibility is via the North Klang Valley Expressway (NKVE), New Pantai Expressway (NPE), Lebuhraya Damansara-Puchong (LDP), Kesas Expressway, Federal Highway, Elite Highway as well as the Subang-Kelana Elevated Highway currently under construction.

For more details, call 03- 5637 3331/ 03-5637 4377 or visit www.titijaya.com.my


Click to enlarge...

By theSun (by Allison Lee)

Property expo for the super rich

More than 3,000 local and foreign potential investors and buyers are expected to attend the inaugural Malaysia International Luxury Properties Exhibition 2008 which begins today.

More than 40 developers are putting up some 100 development projects around the world, valued at more than RM1 billion for sale during the expo which ends on March 23 at the Kuala Lumpur Convention Centre.

Each unit on sale at the expo is priced from RM1 million onwards, and among the potential buyers are those from the Middle East and Europe, said organising chairman Moey Sai Yee. The exhibition is organised by Exhibition Guide (M) Sdn Bhd.

Moey said the bulk of the units on sale include luxury condos while the rest are bungalows and exotic holiday homes.

“Most properties are valued in the range of RM1 to 5 million while the rest are super luxury homes, above the RM10 to 16 million mark. The most expensive property is valued at RM30 million,” he added.

“Our expo essentially provides a platform for those who can afford the price tags of these luxury homes to spend time and view the property which is best suited to their taste,” said Moey.

“We have set up a VIP Lounge at the expo site where potential investors can sit in comfort and carry out their transactions in privacy,” he said.

“Two massage therapists have also been stationed in the lounge for our VIP guests.” Moey said the current economic climate is still positive for the property sector and this is the time for developers to lure foreign buyers.

“Traditionally, properties above RM1 million are only affordable to the upper class Malaysians and foreigners and there are plenty of choice properties available in this category,” he added.

“Our exhibition is open to all and anyone can walk in regardless of their financial standing.”

Among the participating developers are SP Setia Bhd, Sime Darby Property Bhd, Bolton Bhd, PJ Development Holdings Bhd, UEM Land, Dijaya Corporation Bhd, Glomac Bhd, IOI Properties Bhd, TH Properties Sdn Bhd, Country Heights, Metricon Homes (Australia), Hedgeford Sdn Bhd, Great Vision Group (Financial Investment) UK, and various other developers.

The participating financial institutions are AmBank, Bank Rakyat, HSBC Bank, Al-Rajhi Bank, Kuwait Finance House and Affin Bank.

For more related information about " Malaysia Luxury Property Exhibition 2008 "

By theSun (by Tim Leonard)

LBS Bina to transform into high-end property developer

SHAH ALAM: LBS Bina Group Bhd plans to transform itself into a medium- and medium high-end property developer to leverage on the current strong demand for this particular sub-segment and to improve profit margins.

The property developer, which used to focus primarily on low- to medium-income families, would launch new phases in its flagship property project, Bandar Saujana Putra, which has a gross development value (GDV) of RM5.2 billion.

Its managing director Datuk Lim Hock San said the interchange for the township, which will improve accessibility, was opened to the public on March 5 and was expected to improve Bandar Saujana Putra’s appeal.

“The next asset value for LBS is Bandar Saujana Putra,” he said, adding that LBS would build and launch “unit by unit” in order to optimise its profit margin.

Lim added that the development on the South Klang Valley Expressway (SKVE) was also underway and would enhance the value of its property projects when it was fully completed.

“Our area will become a strategic area, so we have to be careful with our launches. We will re-plan our concept to create value for shareholders and enhance the value of LBS,” he said.

The property firm still had more than 202 hectares of undeveloped landbank in the flagship project, Lim added.

“In terms of this land, we are aiming at the higher end market and sell high in order to get more value, more profit for the group,” he said.

LBS, which has a total landbank of 1,092 ha, including in China, decided to add medium-high and high-end properties in its development plan due to weak consumer sentiment and higher cost of buildngs materials such as steel and cement, he said.

Meanwhile, Lim said LBS expected to launch its more than RM5 billion GDV high-end property development project in Zhuhai, China by the end of this year and expected the project to boost the group earnings in the long run.

Speaking to reporters after LBS’s EGM here on Wednesday, he said revenue from its China property development project, which would be developed over eight years, was expected to start contributing to its topline by 2009.

“We are very confident about this project (Zhuhai property development project), it will be a boost to the group,” he said.

The project, targeted at the high-end market, was located within the proximity of a light railway station in Zhuhai and was expected to receive good response, judging from the overwhelming response to other property development projects launched within the vicinity, he added.

By The EDGE MALAYSIA (by Yantoultra Ngui Yichen)

Amarin plans villas, resorts in Malaysia, Indonesia

PROPERTY developer Amarin Wickham Sdn Bhd plans to build high-end residential villas and resorts in Malaysia and Indonesia.

It is scouting for land in Bali, the Klang Valley, Langkawi and Cherating, to build the properties this year, said director Lee Vun-Tsir.

"We are not interested in developing and operating typical resorts or city hotels. The ones we build must be private-based, personalised and exclusive," Lee said in an interview recently.

"Malaysia still lacks boutique developments. What we want to do is bring Bali and Europe here, instead of locals and foreigners going there," Lee said.

It plans to build 20 to 30 boutique-style villas as well as resorts at any one location, complete with a club house, spa and restaurant.

For the villas in Bali, it plans to sell them for between RM2.53 million and RM2.84 million per unit, while those in Malaysia will be priced at more than RM800,000 per unit.

"We are looking at modern indigenous designs and offering niche lifestyle concepts. We may lease some of the units for recurring income, Lee said.

This would be the first venture for the company to build boutique-style villas and resorts.

Its flagship is the RM80 million Amarin Kiara project in Mont' Kiara launched in mid-2006.

It comprises 30 units of three-storey semi-detached villas with private pools, priced between RM1.98 million and RM2.6 million, and one three-storey semi-detached villa, priced at RM3.8 million.

All units have been sold and will be handed over to their buyers next month.

Lee said the company is open to working with major developers, and forming joint ventures with landowners, turning their site into an exclusive enclave.

"We want to be a luxury boutique developer under the Amarin brand," he added.

The company's private finance initiatives are expected to pay off when it launches its second luxury project in Kuala Lumpur in May.

Dubbed Amarin Wickham, the project, which is situated along Jalan Wickham in Ampang Hilir, is a low density five-storey super luxury condominium development consisting of 21 units of duplexes and triplexes.

"The project is valued at RM130 million and comprises four types of units ranging from 3,000 sq ft to 9,000 sq ft. We are pegging the units at RM1,300 per sq ft, which will translate to prices ranging from RM3.8 million to RM8.5 million per unit," Lee said.

There are seven super penthouses that will have a private roof-top pool, garden and jacuzzi, while the remaining standard units will have a private outdoor jacuzzi by the terrace and common pool area.

"We are targeting at least 60 per cent to be foreign buyers," added Lee.

By New Straits Times (by Sharen Kaur)

Mahkota Medical poised for growth

NEW FACILITY: Artist's impression of the lobby (right) and ward at the Regency Specialist Hospital

The Mahkota Medical Group, which has a hospital in Malacca and will soon open one in Johor, is eyeing Sabah and Sarawak next.

"We have our radar screen on other towns, especially those in Sabah and Sarawak. We would like to go where there is no heavy concentration of private hospitals," Mahkota Medical Centre Sdn Bhd chief executive officer Francis Lim told Business Times in an interview.

"We have taken a look at some sites, (but) nothing has been decided," he said.

"We have to look at our shareholders' interest. We do not want to rush into it."

Lim said that the group may consider accepting management contracts without an equity stake.

Given that Malaysia is pushing for medical tourism to bring in foreign exchange, Lim hopes that the tax incentives given to those in Nusajaya, Johor, and set-ups in the Port Dickson Wellness Zone in Negri Sembilan will be extended to all private hospitals.

"Healthcare requires heavy investment," he said.

The Mahkota Medical Centre in Malacca started operations in 1994 under the Lion Group.

Lion, which restructured and sold its non-core businesses during the 1997/98 financial crisis, sold the hospital in September 2001.

The Mahkota Medical Group is now owned by Health Management International Ltd of Singapore (48.95 per cent), Bumiputera group Maju Medik Sdn Bhd (38.42 per cent) and 12.36 per cent by doctors located all over Malaysia.

In the financial year ended June 30 2007, the Malacca hospital recorded RM98 million revenue, of which 30 per cent came from medical tourism.

"For the half-year ended December 31 2007, we have already exceeded RM50 million revenue. For the full year, we expect to hit RM100 million," Lim said.

"We are a leader in Malacca in terms of market share. We probably command 45 per cent of the private-hospital business here," he added.

The Mahkota Medical Centre in Malacca, which is big in medical tourism with 80 per cent share of the foreign-patient market in the state, treated 50,000 Indonesians last year.

"We plan to grow medical tourism further through accreditation from the Malaysian Society for Quality in Health (in August), and are preparing for the Joint Commission International (JCI) in two years for both the Malacca and Johor hospitals," said Lim.

JCI is a global leader in healthcare accreditation and, since 1999, has accredited more than 140 hospitals in 27 countries.

With the accreditations, the group hopes to penetrate new markets, including Bangladesh and Europe.

By New Straits Times (by Vasantha Ganesan)

RM120m Johor hospital to open in June

The Mahkota Medical Group will open a RM120 million hospital in Bandar Seri Alam, Johor, in June.

The 218-bed Regency Specialist Hospital expects to tap medical tourism in a big way. It projects contribution from domestic and foreign patients to be split equally within the next three years.

It will be the group's second hospital.

"The building is completed. The certificate of occupancy has been issued. We are waiting for the operating licence. The hospital should be operational mid-2008," Mahkota Medical Centre Sdn Bhd chief executive officer Francis Lim told Business Times.

The RM120 million investment includes land, building and equipment.

"We expect to break even in three years and be profitable from the fourth," Lim said.

"We are targeting patients, particularly from Singapore, and generally from Indonesia. We anticipate that we will have 50 per cent local patients and 50 per cent foreign in three years."

Lim said that Johor's potential for medical tourism is good as it has an international airport.

Health Management International Ltd of Singapore holds 48.95 per cent of the Mahkota Medical Group. Bumiputera-owned Maju Medik Sdn Bhd owns 38.42 per cent, while 12.36 per cent are held by doctors located all over Malaysia.

By New Straits Times

Emkay marks 25 years and growing

The Emkay group of companies, controlled by property tycoon Tan Sri Mustapha Kamal Abu Bakar, is set to earn stable and sustainable income for years to come, arising from strong sales and rental payments from its property projects.


From 2005 onwards, it will be the investment stage during which we will build specific buildings and then lease them out to earn recurring income for the group. Tan Sri Mustapha Kamal Abu Bakar - Emkay founder

Mustapha Kamal is also the chairman and dominant stakeholder of associate company MK Land Holdings Bhd, a property developer listed on the main board of Bursa Malaysia.

He holds 48.7 per cent of MK Land via privately-held MKN Holdings Sdn Bhd, which in turn is one of 15 companies owned by Mustapha grouped under the Emkay stable.

Emkay will be celebrating its 25th anniversary tomorrow. The event will be attended by former prime minister Tun Dr Mahathir Mohamad.

Mustapha Kamal said Emkay already had a three-phase plan when it started out in 1983.

Under the first phase, 1983-1993, it wanted to go all out to develop new property projects.

"Between 1994 and 2005, we went through the expansion phase.

"From 2005 onwards, it will be the investment stage during which we will build specific buildings and then lease them out to earn recurring income for the group," he said.





In Cyberjaya, for example, some international firms, especially information technology (IT), find it cumbersome to buy land and build their operational offices, he added.

Emkay and associate company Setia Haruman Sdn Bhd, the master developer of Cyberjaya, are embarking on a new initiative for Cyberjaya - constructing the buildings and then renting or selling them to investors.

Emkay chief operating officer Peter Teh Heng Poh said the RM100 million Bangunan Mustapha Kamal in Cyberjaya is a case in point.



The building is expected to be issued with its certificate of fitness this month, with tenants to come in soon after.

"This building, along with Emkay's other projects, will generate recurring income for the Emkay group of companies for the long term," said Teh.

Other ongoing projects include the Menara Mustapha Kamal in Damansara Perdana, Petaling Jaya, the RM350 million MKN Embassy Techzone in Cyberjaya and the RM300 million NeoCyberjaya mixed development, also in Cyberjaya.

Emkay started out with a landbank of 6,072ha, with gross development value of RM29 billion, enough to keep it busy for the next 10-15 years.

It has built 45,000 homes (some projects are carried out together with MK Land) on part of the 6,072ha. The homes, commercial and office blocks have a combined gross development value of RM13 billion.

Emkay is expected to open its RM77 million Belum Rainforest Resort on Pulau Banding in Grik, Perak, as early as this month.

By New Straits Times (by Zaidi Isham Ismail)

Mah Sing lines up RM1.4bil project

Ng Heng Pahi (right), Mah Sing general manager Tan Hun beng (left) abd marketing and sales manager Vevus Ho viewing a scale model for Southbay Penang.

PENANG: Mah Sing Group Bhd is launching its largest project, a whopping RM1.35bil mixed development called Southbay Penang on a 35ha freehold site in Batu Maung soon.

Group chief operating officer Ng Heng Phai said the plans for the first and second phases of the project had been submitted to the local authorities.

“We plan to launch the first phase in the first half of 2008, as soon as we get the green light. The second and third phases will be launched in late 2008,” he told StarBiz.

Southbay Penang, comprising 376 units of landed residential properties and an integrated commercial hub, is scheduled for completion within seven years.

The commercial component will make up 70% of the project. And of that, about 50% will be serviced condominiums and the rest retail and fine-dining outlets.

Ng said the group would unveil the first phase of Southbay Penang this weekend.

”So far, we have received over 2,000 registrations for the preview,” he said, adding that Southbay Penang was the group’s largest project to date.

Mah Sing’s RM858mil Aman Perdana in the Klang Valley and the RM530mil Austin Perdana in Johor Baru are the group’s two other projects with sizeable gross sales value. Both projects are currently under construction.

The two township projects have landed residential and commercial components.

The first phase of Southbay Penang comprises 288 units of three-storey link homes with built-up areas of over 3,000 sq ft.

“The salient features are the six bedrooms and six bathrooms in each unit, high ceiling and a garden located on the second floor. There will also be clubhouse and a recreational park,” Ng said.

He said the second phase would comprise 88 bungalows with built-up areas of 3,800 to 8,000 sq ft.

“High-level security will be provided for in the first and second phases. We will also have patrolling guards and intrusion devices installed in the individual properties,” he said, adding that the landed residential properties were also targeted at overseas buyers.

The three-storey link homes are tentatively priced from RM755,000 onwards, while the bungalows will cost at least RM2.5mil each.

On the integrated commercial hub, Ng said the group would model it after seaside resorts such as the Darling Harbour in Sydney, the Canary Wharf in London, and well-known Mediterranean resorts in Spain.

“We are also interested in incorporating certain features of Xin Tian Di, the popular entertainment precinct in Shanghai, into our commercial scheme.

“The commercial hub will also have at least two hotels. We hope to finalise and submit the plans for the commercial component for approval before the end of the year,” he said.

“The whole development will be integrated via a landscaped boulevard which will be perfect for retail outlets, including alfresco dining and boutiques.

“We are targeting the commercial properties at foreign, notably institutional, buyers,” he said, adding that the group spent about three months to obtain input from potential house buyers in Penang.

By The Star - StarBiz - (by David Tan)

Living in sunshine - Malacca's latest resort offers gateway homes from RM145,000

The past, the present and the future have come together to provide an interesting opportunity for investors and those looking for holiday homes in Malacca.

Banking on the state's rich 600-year-old cultural history, Empire Properties Ventures Sdn Bhd (EPV) is currently developing the 203-acre Malacca Empire Marina Theme Park (MEMTP) and offering for sale the first phase of units that will be ready by 2010.


Set amid a resort, the Soho units are designed to provide a fitting environment for work and play

EPV general manager Quah Eng Hock said the entire multibillion-ringgit development taking shape on the Klebang Beach foreshore as well as on 87 acres of reclaimed land will comprise four components: Empire Sunshine Villas, Empire Theme Park and Service Resorts, Empire Marina Villas and Empire Global Wonder Village.

"We plan our development to be the first to integrate facets of history with tourist elements and lifestyle features demanded by buyers investing in tomorrow," he said.

Now available for sale are 510 Small Office Home Offices (SoHos) in Empire Sunshine Villas.

Situated from the eighth to top-most floor of a 24-and-half-storey tower that will sit atop a three-level shopping mall, Quah said investors have a choice of four layouts.

"Some will also come with roof gardens," he said.

To support the use of the SoHos as holiday homes, recreational facilities including a gym, spa, swimming pool and landscaped gardens will be designed into the phase "to provide a fitting environment for work and play".

Buyers will also have access to commercial outlets such as a business centre, convenience store and the three level shopping mall that will have 22 lots on the ground floor and 48 on each of the upper two levels.

These can be bought for between RM650psf and RM1,000psf.

Piling work for Empire Sunshine Villas commenced last December and so far, 55 per cent of the SoHo units, which carry a gross development value of RM135 million, have been sold.

When Malacca Empire Marina Theme Park (MEMTP) is fully completed in four years, it will be a comprehensive resort with a marine theme park, water villages modelled after the Dubai Palm Resort, a five-star hotel, historial gallery and 10,000-seat international conventional centre.

For more detail information, please visit www.empirepropertyventure.com or contact: 03-2166 3026

By New Straits Times (by P.Rajan)

OSK goes high end in Damansara

A landscaped linear park and jogging trails will be some of the facilities in the guarded precinct.

Guarded enclave offers terraces from RM433,000

Once upon a time, not too long ago, actually, the area in Selangor between the North Klang Valley Expressway's Sungai Buloh toll plaza and the Lebuhraya Damansara-Puchong intersection with the Middle Ring Road II was known as a place for mass affordable homes.

Such was the stereotype because of townships such as Damansara Damai and Bandar Sri Damansara.

How times have changed. With the arrival of the Sierramas and Valencia residential enclaves, the area has moved perceptibly upmarket and the latest project to reinforce this trend is Sutera Damansara.

A joint venture between Permodalan Negeri Selangor Bhd and OSK Property Holdings Bhd, this guarded development with a landscaped recreational park and jogging trails will feature 431 units of double-storey terraces and three-storey corner lots in its first phase called Sutera Ria.

Its standard unit with dimensions of 22ft by 75ft will have four-plus-one bedrooms and three baths in 2,305sq ft of space, while the three-storey version will have an extra bedroom and bath.

Priced from RM433,350 to RM1,193,400 , the tropical-designed units will be specified with column-free porches to allow two cars to be parked side-by-side and high ceilings on the ground floor.

The price range means the likely buyers will be those who can afford monthly repayments starting from RM2,300.

The leasehold phase is slated for completion by January 2010 and is accessible from Jalan Sungai Buloh via Damansara Damai.

For more information, please call 03-7726 7577 or visit website www.osk.com.my

By New Straits Times (by Zuhaila Sedek)

LBS to launch projects worth RM5bil in China

PETALING JAYA: LBS Bina Goup Bhd expects to launch property development projects in Zhuhai, China, with an estimated gross development value of more than RM5bil by year-end.

Managing director Datuk Lim Hock San said the projects would include high-end bungalows and apartment units and he expected a good take-up due to strong demand for such properties.

Datuk Lim Hock San

“Zhuhai is a good location. Our site for the projects is near the LRT station and this has increased the value of our land,” he told reporters after the company EGM yesterday.

A bridge linking Hong Kong, Macau and Zhuhai was also in the process of being firmed up by the relevant governments, he said, adding that the Macau tourism industry was also expected to have a spill-over effect on its property projects.

Yesterday, LBS shareholders approved the proposed renounceable rights issue of 175.03 million new warrants.

Lim said demand for property in China was still high and consumer spending had remained firm. He was confident that the group's revenue would be boosted by its China property development by end-2009.

Locally, LBS was focusing on medium-to high-end properties due to higher building materials costs, including steel bars and cement, he said, adding that it planned to launch more mixed development projects this year in Bandar Saujana Putra and Taman Tasik Puchong, as well as industrial properties in Puchong.

On RAM Ratings' move to put LBS RM65mil secured serial bonds and RM100mil commercial papers programme on Rating Watch, with a negative outlook, on concerns about the company's deteriorating business and financial profiles, Lim said the company's projects had been delayed due to higher building material costs.

He added that other companies' outlook had also been affected by the weak consumer sentiment and uncertainties after the recent general election.

“However, in the medium to long term, the property outlook is still good and we expect things to stabilise in another month or two,” he said.

RAM had on Tuesday placed the A2(s)/P1(s) ratings on LBS due to its deteriorating business and financial profiles, arising from its continuous poor performance and persistent deferment of planned launches in the last few years. According to the rating agency, LBS had been supplementing its income with land sales over the past year – a measure that was not deemed sustainable and further highlighted the group's weakened fundamentals.

By The Star

Investors adopt 'wait and see' approach in Penang

PROPERTY transactions in Penang appear to have come to a standstill as investors wait and see how the state's economic landscape will unfold.

"We have received many concerned calls from our foreign investors, counterparts and clients, who are anxious to get a better feel of the ground on the implications for the property market," Henry Butcher Malaysia (Penang) Sdn Bhd director Dr Teoh Toh Puat told Business Times yesterday.

He said that improving living conditions in Penang would help to attract foreign investment in properties and those looking for a second home.

"Attracting investments, tourism arrivals and residents, however, will be a greater challenge today in view of the growing Asia-Pacific real estate market offering alternative opportunities for investors in 2008," Teoh said.

Henry Butcher Malaysia (Seberang Prai) senior manager Fook Tone Huat expects investors to take a few months to observe the new political developments before making any decision to continue their investments.

"Right now, I believe they will wait and see before they decide on their next move, and this will definitely slow down investments.

"However, if the new state government implements the 'transparency and fair to all' administrative strategy, it may create more market confidence," Fook said.

He noted that the residential sector in Seberang Prai was expected to be the main player in the state's property market.

"The opening of the Jusco Mall at Bandar Perda in Bukit Mertajam will spell a new era for the retail sector in Seberang Prai.

"We also expect 2008 to see further consolidation if the development corridors and the projects under the Ninth Malaysia Plan proceed as planned," Fook said.

The opening of the Butterworth Outer Ring Road is expected to have a positive impact on the property market in the surrounding areas of Bagan Lallang and Bagan Ajam.

"Other popular residential precincts in Seberang Prai are Juru, Bukit Tengah, Jalan Song Ban Kheng and Bukit Minyak."

By New Straits Times (by Marina Emmanuel)

KFH plans financing initiatives for ECER

KUWAIT Finance House (Malaysia) Bhd is in discussions with Terengganu's state investment company, Terengganu Inc, and its related companies on financing initiatives within the East Coast Economic Region (ECER).

"We have looked into specific financing opportunities for some of the related companies, ranging from infrastructure, oil and gas, shipping, plantation/agriculture and IT (information technology)," said its managing director Datuk Salman Younis.

"So far, all of the discussions are focused on financing," he said in a statement yesterday.

On plans for retail branches within the ECER, Younis said the Islamic bank will evaluate the feasibility based on the success of its corporate, investment and commercial businesses there.

He said the bank was currently involved in the financing of a flight training school and garment manufacturer, both in Kota Baru.

Kuwait Finance House, one of the largest Islamic banks in the world, has embarked on several projects, including establishing a find investing about US$330 million (RM1 billion) for projects in the Iskandar Development Region.

The ECER master plan envisaged Terengganu as a tourism gateway, hub for oil, gas and petrochemical industries, centre of educational excellence and agriculture focused on goat rearing and as a citrus valley.

Kelantan will become centre of trading, human capital development, educational excellence as well as poultry and herbal cultivation.

Pahang will focus on manufacturing and becoming a port city with integrated logistics distribution centre and palm oil industrial cluster as well as cattle and pineapple, while Mersing in Johor will be developed for tourism.

By Bernama