LBS Bina shifts gear

SHAH ALAM: Local developer LBS Bina Group Bhd has slated four projects worth more than RM330 million for launch in the Klang Valley this year.

According to its managing director Datuk Lim Hock San, they will be focusing on building medium and medium-high cost properties.

At its flagship development of Bandar Saujana Putra in Selangor, LBS is expected to launch medium and medium-high end houses with an estimated gross development value (GDV) of more than RM179 million this year. “We are waiting for approval from the relevant authorities on these projects and will make an announcement in the coming months,” said Lim.

Among the projects slated for Bandar Saujana Putra are 78 units of 3- and 5-storey shop offices
with a GDV of RM71.5 million, 67 units of 2-storey linked houses with built-up area of 990 sq ft, and 74 units of 2-storey linked houses with built-up of 1,400 sq ft. The houses have an estimated GDV of RM37.8 million, priced from RM200,000 onwards.

“We will also be launching 15 industrial lots with an average acreage of 1.38 acres,” said Lim, after the company’s EGM recently. The industrial lots are expected to carry a GDV of RM78.7 million.

LBS is also launching 41 units of 2-storey houses, named Min Gardens, with an estimated GDV of RM 11.3 million. Lim said Min Gardens’ properties, each with built-ups of 1,400 sq ft, are expected to be priced from RM260,000 onwards.

The developer is currently offering 48 units of 2-storey terraced houses priced from RM250,000 onwards, with a built-up size of 1,200 sq ft each.

LBS has a 500-acre undeveloped land bank in Bandar Saujana Putra. It has to date, completed and sold 4,000 units of low and medium cost properties in the 820-acre, RM5 billion-township since its launch in 2003. When completed over the next three to four years, Bandar Saujana will have more than 12,000 units of mixed development properties.

In Taman Tasik Puchong also in Selangor, LBS is launching projects with a GDV of RM32.44 million comprising 90 units of 1,200 sq ft 2-storey link houses and 48 units of 1-storey cluster link houses. These units are also expected to be priced from RM200,000 onwards.

And in Taman Perindustrian Tasik Perdana in Selangor, LBS will launch projects worth RM90.4 million comprising 40 units of 1 1/2 –storey factory lots measuring 2,000 sq ft and priced from RM500,000 onwards, and 44 units of 1 1/2 –storey semidee factory units with 7,500 sq ft and priced from RM 1 million onwards. Another 16 industrial lots will also be sold in the vicinity with prices ranging from RM1.3 million onwards.

By early next year, LBS will launch 22 units of semidees in Carnation Park, Cameron Highlands with an estimated GDV of RM12.6 million. The houses will have built-ups of 2,700 to 2,900 sq ft. Prices have yet to be determined.

By theSun (by Tim Leonard)

Danga City Mall to open in Johor in July

ONE of the biggest shopping complexes in Johor Baru - Danga City Mall - will open in July with Metrojaya as its anchor tenant.

The tenancy agreement will be signed on Friday between the complex owners, Danga City Mall Sdn Bhd (DCM) and Metrojaya Bhd’s wholly-owned subsidiary, MJ Department Stores Sdn Bhd.

DCM director Gary Lee Seaton said the mall is scheduled to open in July as soon as Metrojaya completes its renovations and fittings.

News of the opening has spurred a great deal of interest in Johor Baru with strong enquiries from Malaysian and Singapore-based retailers and traders for take-up of the 500-odd shop lots in the complex.

By Bernama


Click on the map to enlarge

SP Setia eyes RM520m profit

INVEST MALAYSIA 2008 CONFERENCE

SP Setia Bhd, Malaysia's most valuable property company, aims to double its net profit in four years, helped by new product offerings and overseas expansion.

The company expects overseas businesses to contribute equally to its net profit and revenue by 2012, said group managing director and chief executive officer Tan Sri Liew Kee Sin.

SP Setia, which has a market value of some RM5 billion, made a net profit of RM260 million for the 12 months ended October 31 last year.
Its revenue was flat at RM1.15 billion.

"We are looking at launching new projects in nearby neighbouring countries, which we can effectively manage.

"There is huge potential in Southeast Asia. Besides maintaining a steady growth in Malaysia, we will launch projects in new markets," Liew told reporters at Invest Malaysia 2008 in Kuala Lumpur yesterday.

The firm has 1,937.12ha in Penang, Johor, the Klang Valley and Kota Kinabalu, Sabah, with 16 ongoing projects worth RM30 billion.

This year, it will launch four projects in Malaysia and one in Vietnam, worth RM5 billion collectively.

Earmarked for next year is a mixed development project at a 8.1ha site opposite the Mid Valley Megamall development, in a joint venture with City Hall.

The project will comprise mainly commercial components such as shopping, retail and offices, and also apartments and condominiums.

In Sabah, SP Setia plans to launch several tourism-based developments, after unveiling plans for its first venture in the state, a RM1 billion mixed development project in Tanjung Aru - dubbed Aeropod.

Aeropod is a major bet on the economy of Sabah, which is set to benefit from an 18-year development plan, estimated to attract investments of more than RM100 billion.

Liew said the group is keen to build eco-friendly developments in Sabah, which is in line with its aim to diversify its geographical concentration to other high-growth states and international markets.

By New Straits Times (by Sharen Kaur)

Naim Cendera sets revenue target

NAIM Cendera Holdings Bhd is targeting an annual compounded growth rate of 30 per cent in revenue for the next three years.

The construction and property group expects to achieve this through a combination of increased sales in the property division and by replenishing its construction order book by between RM0.5 billion and RM1 billion yearly.

The group made a net profit of RM82.7 million against RM652 million in revenue for the financial year ended December 31 2007.

Managing director Datuk Hasmi Hasnan said the group plans to treble its property sales from RM230 million currently, in the next three to five years.

Naim Cendera's net outstanding order book stands at RM2.6 billion, which will last the group between two and three years.

By New Straits Times

SunCity projects unchanged sales next year

SUNWAY City Bhd, a Malaysian developer and hotelier, said it’s “concerned” about slowing global economic growth as it forecast unchanged sales next year.

Revenue in the year ending June 2008 will be RM1.4 billion (US$439 million) and little changed in the following 12 months, Ngian Siew Siong, Sunway’s managing director of property development, said in an interview in Kuala Lumpur yesterday.

The company may list a real estate investment trust of its properties in Malaysia or Singapore in the second half of the year, chief financial officer Koong Wai Seng told reporters.

Sunway will also start a RM1.5 billion property project in India in April, a venture with Opus Pte, Koong said.

By Bloomberg

Penang mulls subway system instead of monorail

PENANG is mulling the idea of building a subway system as a long-term solution for its traffic and flooding problem, instead of the elevated monorail project mooted by the federal government.

"The final say on this matter, however, rests with the federal government, since the monorail is a project which is to be financed by the federal authorities," Penang Chief Minister Lim Guan Eng said.

He was speaking to reporters after chairing his second state executive council meeting in George Town yesterday.

Lim said he realises that an underground transportation system will cost at least three times more than the monorail system.

The chief minister, who received a courtesy call on Tuesday from Malaysian Resources Corp Bhd (MRCB) officials, said he was briefed on the monorail project.

"The parties involved in the monorail project said that they are unable to secure financing for a subway system," Lim said.

MRCB, together with Penang Port Sdn Bhd and Scomi Engineering Bhd's subsidiary, Scomi Rail Bhd, have jointly bid for a monorail project on the island.

In January, Syarikat Prasarana Negara (SPNB) issued a letter of intent to the consortium for the monorail job. The monorail is said to comprise two lines measuring 25km.

The first route proposed is between the Penang International Airport and George Town, while the second line will be from George Town to Tanjung Bungah.

By New Straits Times (by Marina Emmanuel)

Sri KDU Smart School coming up in Nusajaya, Johor

Teo and Wan Abdullah after the signing ceremony

PETALING JAYA: Janahasil Sdn Bhd, a wholly-owned subsidiary of Paramount Corporation Bhd (Paramount) has signed a sale and purchase agreement with UEM Land Sdn Bhd (UEM Land) yesterday for the acquisition of 10 acres of land in Nusajaya, Johor.

Sold for a total consideration of RM13.068 million, the land is located within UEM Land’s latest development known as East Ledang. Paramount, with a track record in the educational services
sector under the KDU brand, will construct and operate the proposed Sekolah Sri KDU Smart School on the 10-acre plot.

“Paramount will be the first private education operator in Nusajaya. The setting up of a private school of this stature is in line with our plans to develop an integrated community with world class infrastructure in Nusajaya. I am confident that the school, when completed and ready for enrolment in 2011, will be welcomed by young families looking for quality yet affordable education for their children,” said Wan Abdullah Wan Ibrahim, managing director of UEM Land.

Datuk Teo Chiang Quan, group managing director and group CEO of Paramount, said another RM40 million would be allocated for the construction of the school’s first phase.

Paramount also has an option to acquire another 15 acres of land from UEM Land for future expansion. According to Teo, the group has three years to exercise the option, which it is considering. “We are committed to doing something there; we are now doing a market study to find out why should we do another school there,” he added.

According to Teo, the company is in the midst of planning the blueprint, which could take about three months after which relevant submissions will be done. “We aim to begin piling works seven months from now, perhaps in October. It will take one and half years to build the school,” he said.

The school, which is targeted to open its doors on January 1, 2011, will cater to the current and future population of Nusajaya as well as the Johor population. It will have a slightly smaller capacity compared to its Sekolah Sri KDU in Kota Damansara, which has a full capacity of more than 2,500 students.

Other established names under the KDU banner include KDU College in Damansara Utama, Sekolah Sri KDU in Kota Damansara, KDU Management Development Centre (KMDC) in Kuala Lumpur and Petaling Jaya, as well as KDU International Language Training School (KILTS) in Chongqing, China.

According to Wan Abdullah, the school will be fronting the Coastal Highway connecting the Johor city to Nusajaya. The highway project is being spearheaded by South Johor Investment Corporation and is funded by the federal government to improve connectivity.

East Ledang, a 365-acre development launched about four weeks ago, has had its first phase 50% taken up and expects to be 100% sold in a matter of three to four months, said Wan Abdullah. He reveals that its second phase, comprising terraced homes, semidees and bungalows will be launched in 4Q2008.

UEM Land is the master developer of Nusajaya, a 24,000-acre regional city located in South Johor touted to be the largest fully-integrated urban development in South-East Asia. The group is currently undergoing a restructuring exercise which will be completed in September, said Wan Abdullah. “There have been no setbacks,” he said.

By theSun (by Yeong Ee-Wah)

UEM Land sees good response

Wan Abdullah Wan Ibrahim (right) and Datuk Teo Chiang Quan at the press conference

PETALING JAYA: UEM Land Sdn Bhd expects the first phase of its 365-acre East Ledang high-end residential property development in south Johor to be sold out in four months.

Managing director Wan Abdullah Wan Ibrahim said 50% of the first phase had been sold since the project was launched four weeks ago.

“We had very good response from Singaporean and Johorean buyers.

“Judging from the response, we expect to launch the second phase in the fourth quarter,” he told a press conference after Paramount Corp Bhd’s wholly owned subsidiary, Janahasil Sdn Bhd, inked a sale and purchase agreement with UEM Land for 10 acres in East Ledang.

Under the agreement, Paramount will purchase the land from UEM Land for RM13.07mil and construct and operate a private school called Sri KDU Smart School.

The first phase of the East Ledang development on 40 acres comprises 140 terrace and semi-detached units with a total gross development value (GDV) of RM97mil. The project’s total GDV is about RM1.3bil.

On the progress of parent company UEM World Bhd’s restructuring exercise, Wan Abdullah said the scheme was progressing “smoothly”.

“We hope to call for an EGM for the UEM group in July and complete the whole exercise by September,” he said.

Paramount group managing director and chief executive officer Datuk Teo Chiang Quan said the agreement gave the company the option to acquire another 15 acres within the next three years.

By The Star

IJM: Construction firms' earnings will hold up

TAN: Opposition victories in five states won't hamper IJM's earnings

IJM Corp, Malaysia's second biggest builder, said the nation's construction companies will be able to maintain profits for at least two years, dismissing concern that the government's polls losses will slow spending on public works.

Opposition victories in five states in the March 8 elections won't hamper IJM's earnings, managing director Datuk Krishnan Tan told reporters yesterday.

"It's not peaking," Tan said. "Awards may peak but jobs take two to three years to finish so one has to be clear that in terms of revenue spins, they'll be on for two to three years."

Shares of Malaysian builders including IJM have plunged on fears Prime Minister Datuk Seri Abdullah Ahmad Badawi's spending plan for roads, bridges and ports may be delayed after the ruling coalition lost its two-third parliamentary majority. The Kuala Lumpur Construction Index has dropped 9.4 per cent since March 8.

"Most of the big construction companies already have substantial order books that will take them to two years of earnings," Tan said. "If there's a delay, it will be a delay in order-book enhancement. It shouldn't affect the earnings in immediate terms."

Many of the country's large construction contracts have yet to be awarded, "so I don't see how it can peak," he said, referring to new orders.

By Bloomberg

More office space for PJ’s Section 13

The site for the future PJCC

PETALING JAYA: The Brunsfield Group of Companies is targeting multinational companies who are on the lookout for a Petaling Jaya business address to take up space at its upcoming corporate office-cum-showroom building that will be coming up along Section 13’s Jalan Kemajuan.

Its executive director of property development Chan Chee Keong told theSun its central location would ensure the success of its project, known as Petaling Jaya Commercial Complex (PJCC).

“The commercial site is also near popular eateries like Restaurant Unique Seafood. Nearby existing and upcoming commercial developments point to the potential of this area as well,” said Chan.

Having obtained its building plans and development order approvals recently, construction of the eight-storey project with a gross floor area of 378,172 sq ft and a net letable area of 289,997 sq ft on a freehold 3.48-acre site will start in June. Completion is in 36 months and the developer plans to lease the building enbloc.

“We have started the pre-leasing exercise and have received a few enquiries.

Such a building will be ideal for businesses that also need warehousing or storage facilities to accompany the office. Behind the main block of PJCC, there is space for such facilities,” he added. The Sime Darby Group and Brunsfield jointly own the site. PJCC will house showroom facilities
on the ground and first levels while the remaining upper floors will be for office use. According to Chan, rental rates are between RM4 and RM4.50 psf.

Meanwhile, a consultant familiar with the area believes that the project will do well because of its location. Kim Realty principal Vincent Ng also told theSun that the whole Section 13 area has been zoned for commercial use.

“Nowadays Jalan Kemajuan is very much considered a main thoroughfare and with its close proximity to the Federal and Sprint highways, it will be suitable for businesses that are looking for an office away from the city centre, which is getting too crowded,” said Ng.

Ng also noted that bungalows along Jalan Kemajuan have been transformed into business premises over the past few years. “Businesses here front the main road and enjoy good exposure. Demand for land here is also on the rise and I believe people are willing to pay more than RM200 psf, depending on the size and location of the site,” he added.

As land prices become more expensive in the city centre, Ng also feels that businesses are moving away from the city centre to suburban areas. Citing Damansara Heights as an example, he said rental rates for office space there is in the region of RM5.50 psf.

“Rental rates in the Section 13 area are easily going between RM3.50 and RM4 psf, such as those in Jaya 33, which is fully occupied, and 3 2 Square’s tower block,” said Ng, adding that PJCC could command a rental rate of about RM4 psf if it were to be a nicely done up modern building.

With the appreciating land cost at Section 13, Ng also felt that it would be a waste to offer industrial properties.

By theSun (by Loo Pik Kwan)

Films and TV shows prompt Britons to buy slice of paradise

LONDON: With its deserted shores and pristine waters, year-round sunshine and lush vegetation, the island idyll was as much a star of the film The Beach as its Hollywood hero, Leonardo diCaprio.

So it is perhaps not surprising that some film-goers have sought to emulate the fictional young hedonists in the 2000 thriller by seeking their own utopia in Thailand. And according to a new survey by a foreign exchange company, Foreign Currency Direct, they are among the one fifth of Britons who have bought a foreign property after being influenced by a film or television series.

With the help of the polling company YouGov, the firm asked 2,000 people what prompted their investment in bricks and mortar abroad. After analysing their replies, it picked out the 10 films and television series that have tempted buyers to start a new life, or buy a second home, abroad.
Among the favourites are the James Bond films, which have frequently featured the azure waters and lively nightlife of the Caribbean, and The Lord of the Rings, which is said to have encouraged fans to seek a new life in its mountainous backdrop, New Zealand.

The cobbled streets, fishing boats and shimmering sea of The Talented Mr Ripley have strengthened the appeal of rural Italy, despite harbouring a celluloid psychopath played by Matt Damon. Captain Corelli’s Mandolin has, apparently, prompted an influx of romantic home buyers to the Ionian island of Cephalonia.

An interest in moving to Argentina may have been aroused by the 2004 hit The Motorcycle Diaries, which depicted the journey of a young Ernesto “Che” Guevera and his friend Alberto Granado from Buenos Aires to Venezuela.

Television series credited with stirring people into action include A Year in Provence, based on Peter Mayle’s diary of restoring a French farmhouse. About 13% of buyers in the South of France aged over 45 said they had been “seduced” by the series.

Rural Ireland has become popular partly as a result of Ballykissangel, the BBC drama set in a village in County Kerry, but filmed in County Wicklow. And the purchase of property in the Scottish highlands has been spurred by the panoramas of The Monarch of the Glen.

Further afield, the soap operas Neighbours and Home and Away, set in Melbourne and Sydney, have tempted Brits to Australia with images of detached houses and unfeasibly large kitchens. The cheaper cost of living was the biggest reason cited by owners for buying abroad, followed by fear of crime at home, the weather and investment or taxation.

By The Independent

Parkson to build RM214mil mall

PETALING JAYA: Parkson Holdings Bhd has proposed a RM214mil retail mall in Setapak, Kuala Lumpur with a minimum gross retail floor area of 690,000 sq ft.

In a statement to Bursa Malaysia, it said there would also be a basement floor of 328,000 sq ft – encompassing 900 parking bays and 6,700 sq ft of retail shops. It said the mall was expected to be completed in the second half of 2009.

By The Star

Gurney project in Penang may be reviewed

Guan Eng: State govt wants views from everyone


Raising concerns: Artist impression of Gurney Paragon, a mixed integrated development comprising a shopping mall, high-end condominiums and a heritage building.

PENANG: The state government will review the billion-ringgit Gurney Paragon project if there are “justifiable grounds”.

Chief Minister Lim Guan Eng said the state government would get views from all quarters and welcomes any objection.

“We will revisit the projects approved by the previous administration and if necessary, review them if these projects are adversely affecting people’s lives.

“The concerns expressed to us by NGOs have been taken into account and we want certain procedures to be complied with, as should be the way the government works,” he said after a dialogue session with members of the Free Trade Zone Penang Companies’ Association yesterday.

Lim was responding to calls by the Penang Heritage Trust (PHT) and Bar Council Legal Aid Centre to review and hold an open hearing on the project.

PHT chairman Dr Choong Sim Poey had told a press conference the state government should reassess the planning permission procedures practised by the previous Penang Municipal Council.

Gurney Paragon is a mixed integrated development by Hunza Properties (Penang) Sdn Bhd comprising a shopping mall, two blocks of high-end condominiums and a heritage building spread over 4ha of freehold land.

Located along Gurney Drive fronting the sea, the land was formerly occupied by the Uplands International School. The company bought it in 2004 for RM97mil.

Gurney Paragon has a total gross development value of close to RM1bil.

Piling work for the development has begun and the project is scheduled to be completed by 2010.

Lim said the state welcomed any view or suggestion on projects that had been approved by the previous state government.

By The Star

IJM: Builders to maintain profits

IJM Corp, Malaysia’s second-biggest builder, said the nation’s construction companies will be able to maintain profits for at least two years, dismissing concern that the government’s poll losses will slow spending on public works.

Opposition victories in five states won’t hamper IJM’s earnings, managing director Krishnan Tan told reporters today at an investor conference in Kuala Lumpur organised by the Malaysian stock exchange.

“It’s not peaking,” Tan said. “Awards may peak but jobs take two to three years to finish so one has to be clear that in terms of revenue spins, they’ll be on for two to three years.”

Shares of Malaysian builders including IJM have plunged on fears Prime Minister Datuk Seri Abdullah Ahmad Badawi’s spending plan for roads, bridges and ports may be delayed after the ruling coalition lost its two-third parliamentary majority. The Kuala Lumpur Construction Index has dropped 9.4 per cent since March 8.

“Most of the big construction companies already have substantial order books that will take them to two years of earnings,” Tan said. “If there’s a delay, it will be a delay in order-book enhancement. It shouldn’t affect the earnings in immediate terms.”

Many of the country’s large construction contracts have yet to be awarded, “so I don’t see how it can peak,” he said, referring to new orders.

By Bloomberg

Aseana Prop sees RM2b from Mont' Kiara projects

Almost Sold Out: Tiffani by i-Zen project is among a few high-end residential and commercial developments at Mont' Kiara -- Website picture

ASEANA Properties Ltd, listed on London Stock Exchange and 20 per cent-owned by Ireka Corp Bhd, expects to rake in nearly RM2 billion in gross development value (GDV) from two high-end projects in Mont' Kiara.

Aseana also plans to launch its first overseas project in Vietnam by year-end, subsidiary Ireka Development Management Sdn Bhd chief operating officer Lim Ech Chan said.

The Vietnam venture will be a mixed development of serviced apartment, office and retail lots on a partnership with a local party, Lim said.

Aseana should generate RM1.3 billion from the recently-launched Seni Mont' Kiara residential resort and RM380 million from Tiffani by i-Zen condominium project.

Seni Mont' Kiara and Tiffani by i-Zen are among a few high-end residential and commercial developments under Aseana at Mont' Kiara.

"The average price of condominiums at Tiffani by i-Zen is RM630 per sq ft (psf). More than 90 per cent of the total 399 units available have been sold in the past one year," Lim said.

Sixty per cent of the project has been completed and the handover of the residentials is expected in early 2009.

Lim spoke to reporters after Aseana signed an agreement appointing South Korea's LG Electronics as air conditioners supplier for the Tiffani by i-Zen yesterday.

"The Seni Mont' Kiara will have an average price of RM750 psf," he added.

The Seni Mont' Kiara project, Lim said, will comprise four blocks with a total 600 units of condominium.

Two phases are being undertaken, with completion in three years. Phase One will have 300 units. The second phase of another 300 units is planned for launch in June or July.

Aseana expects to launch an office development by December this year.

"It is a two blocks of 28-storey and 16-storey office development with an average price of RM850 psf," Lim said.

Meanwhile, LG Electronics Sdn Bhd managing director T.Y. Ko said it will install 2,200 units of LG ArtCool air-conditioners at all 399 Tiffani by i-Zen units.

The contract is valued at US$4 million (RM12.76 million), he added.

This is the second air-conditioner contract awarded by Aseana to LG Electronics. In 2006, the latter got to supply air-conditioners for all the 404 units of the Kiaraville condominium development.

By New Straits Times (by Zuraimi Abdullah)

Faber’s new projects in KL and Sabah

Adnan (right) with Rimbunan Melati senior general manager Khalid Abdul Majid in front of a 3-storey terraced house show unit in Laman Rimbunan

KUALA LUMPUR: Faber Development Holdings Sdn Bhd (FDH), a member of Faber Group Bhd, is set to launch two new projects in Taman Desa here and an exclusive development in Kota Kinabalu, Sabah this year. Within its flagship development in Taman Desa, FDH will launch a joint-venture (JV) project with Dewan Bandaraya Kuala Lumpur (DBKL) comprising 40 units of semi-dees and six bungalows with an average built-up of 4,000 sq ft and 7,000 sq ft respectively.

The proposed average selling price for the semidees is RM1.4 million, and RM2.85 million for the bungalows. The target launch for the JV is the 2Q2008, Faber group managing director Adnan Mohammad told theSun in an interview recently.

“There is also a lakeside condominium in Taman Desa that we plan to launch by the 3Q2008,” he added. The lakeside development would consist of 176 units of luxury condominiums, with an average builtup of 1,279 sq ft. The proposed average selling price is RM400,000.

According to the developer, the two developments to be launched in Taman Desa are adjacent to each other.

Adnan disclosed in Kota Kinabalu, FHD will be launching a RM31 million high-end development within the exclusive Taman Hilltop. To be called Hilltop Perdana, it comprises 32 semi-dees and two linked bungalows with average built-up area of 4,000 sq ft. With a selling price of between RM869,060 to over RM1 milllion, the launch is scheduled for the 2Q2008.

“Taman Hilltop is an established and exclusive area in Kota Kinabalu. We anticipate very good response there,” said Adnan, adding that within the same vicinity, all high-end developments have been fully taken up.

FDH, through its subsidiary Rimbunan Melati Sdn Bhd, is currently developing Laman Rimbunan in Kepong, Kuala Lumpur. The mixed development consists of shop offices, 3-storey terraced houses, and medium and low-cost apartments. It is a JV between FDH and Cekap Corporation Bhd, where FDH holds a 55% stake.

Spanning over a 100-acre leasehold tract fronting Jalan Kepong, Laman Rimbunan has a gross development value of approximately RM618 million, consisting of six phases. To date, 60% has been developed, comprising 50-units of 3-storey shop offices and 243 units of 3-storey terraced houses. On-going developments include 360 units of lowcost apartments, eight units of 2-storey shop offices, and 148 units of 3-storey Mawar houses.

“Response has been very encouraging. Our 3-storey shop offices, 3-storey houses and low-cost apartments have been fully sold. The second phase of our 3-storey Mawar terraced houses have seen a takeup of 95%,” said Adnan.

The Mawar houses have built-up of 3,033 sq ft and a lot size of 22 ft by 75 ft. Launched in November 2006, with pricing at RM471,800 onwards, it is expected to be ready by November this year.

Launched earlier this month was its third phase, Matahari, comprising 193 units of 3-storey terraced houses with a lot size of 22ft by 75ft and built-ups from 3,025 sq ft for intermediate units and 3,689 sq ft for corner units. Intermediate units are going from RM547,800 while end lots are priced from RM843,800.

Adnan said 50% was sold within a week of the launch. The GDV of Matahari is over RM119 million.

According to the developer, a Matahari unit features a 700 sq ft junior master bedroom on the third floor. Laman Rimbunan also boasts the use of high quality materials. The Construction Industry Development Board (CIDB) Malaysia, graded the construction quality of the project's first phase (terraced houses) as above average, or 70%.

“The property market in Kepong is vibrant," said Adnan, citing an example of some shop offices that were bought for RM1 million in August 2005 and were recently sold (subsale) for RM1.5 million.

"For our houses, the buyers are mainly owner-occupiers from Petaling Jaya, Kepong and Taman Desa,” he added. FHD is in the midst of securing more lands within Klang Valley, including one in Puchong. The developer will also be looking at collaborations with its sister company, UEM Land, and will continue to either acquire land or possible JVs with landowners.

By theSun (by Rosalynn Poh)

Asia property demand predicted to continue amidst global slowdown

SYDNEY: Demand for commercial and residential property in Asia will continue in the medium term despite a global property slowdown in 2008, predicts the Asian Public Real Estate Association (APREA).

Peter Mitchell, the CEO of APREA, told an audience of institutional investors at a recent seminar in Sydney that emerging Asian real estate investment trusts (REITs) made it comparatively easy and costeffective to access these markets.

“In certain Asian markets such as Hong Kong and Singapore, REITs are beginning to mature as an asset class,” said Mitchell. “As an investment instrument, REITs generally offer the longer-term investor steady dividend yields, a high level of management transparency and the potential for appreciation of the underlying assets.”

By The Edge Singapore

Abbey Woods focuses on KLCC

VETERAN property marketing guru and developer, Datuk Wong Choon Kee, who recently left Sunway City Bhd after more than seven years helming the company, is still raring to shape the property landscape of Kuala Lumpur and other major cities around the world.

“Property is my life – I live and breathe property,” enthused Wong during a recent interview with StarBiz. A strong believer of real estate in the KL City Centre (KLCC) area, Wong's outfit, Abbey Woods Sdn Bhd is teaming up with a few strong financial partners to develop high-end residential and commercial projects in the well sought after address.

“We believe that any property built in the KLCC area will be marketable and tradable. Properties built here have to be high-end branded products with quality finishes and iconic designed facade.” he said.

Datuk Wong Choon Kee

On his plans for Abbey Woods, Wong said: “It is important to always create a vision and then ignite your organization to make this vision a reality. I love exerting energy competitive spirit to get my team passionate about what they are doing that they cannot wait to execute the project.”

“I hope I am able to share my experiences and the little expertise that I have with the younger generation of developers and builders in Malaysia. To move ahead, one would have to be in-tune with the latest technology and information.” he added.

He pointed out that branding was the business buzz in property development today.

In the robust city of Vancouver, Abbey Woods will be teaming up with foreign fund partners to develop quality and high-end property projects.

The first project will be a 30-storey condominium tower comprising of 180 condominiums, ranging in sizes from 850 to 2,200 sq ft.

Construction is expected to commence within six months, once planning approvals are obtained. Selling prices are not yet confirmed, but expected to be in the region of RM4,000 per sq ft.

“The strong and sophisticated property market in Vancouver has attracted substantial investors' interest from all parts of the world.

High-end residential properties are going for between RM6,000 and RM8,000 per sq ft. The commercial market also holds much potential,” Wong said.

He also has plans for some quality residential projects in Singapore to establish a strong brand in the regional market.

How does he keep up with the industry? Wong said: “I love attending property launches, both locally and internationally. It is through these launches that I learn about the competitions we are facing and the ever changing trends – what is in and what is not.

“I must say that my years with the corporate sector were indeed fulfilling and inspiring as I got to work and learn from great visionaries. Everyday was a learning experience – gaining more skills and knowledge on the know-how's of the business. Their management and leadership skills had empowered and sparked others, leading the pack to achieve goals and vision.”

Wong co-founded property consultancy firm CH Williams, Talhar & Wong in 1973 and remained the firm's managing director until 1989.

His exposure in Canada was between 1989 and 1996 when he was the president and chief executive officer of Abbey Woods Development Ltd, a property company listed on the Toronto and Vancouver stock exchanges.

In late 1996, he was back in Malaysia to join Genting Bhd as executive vice-president before moving on in 2000 to become the senior managing director of Sunway City Bhd.

As part of the SunCity team, Wong listed three projects that he took pride in – Sunway South Quay, Kiara Hills and Palazzio “where the epitome of fine living makes both architectural aesthetics second to none amidst a lushly landscaped setting.

“Many savvy homebuyers are seeking for innovative residences set in natural surroundings. It has been said that a high quality life is often associated with a natural milieu in the simplest form – light, views and free flow of fresh air.

“Through our projects, we had gone beyond the norm to build wholesome innovative homes; beyond the expectations of homebuyers.

“Besides an exclusive address, the iconic development sits on an extensive natural, tropical landscaping, and uses natural materials laced with modern tropical designs,” he said.

With Wong's dynamic capacity for new property ideas and work, one can expect more property deals to come in the near future.

By The Star (by Angie Ng)

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