Keen interest in The Chicago Sphires

Savills Rahim & Co manages to close a few sales at the launch

The guest list at the Kuala Lumpur launch of The Chicago Spire at the Mandarin Oriental on April 2 comprised the who's who in Malaysia, with members of the royal family, corporate bigwigs and politicians eager to know more about the world's tallest exclusively-residential building.

Selling agents Savills Rahim & Co which hosted the launch closed a few sales that day. “We're confident of having five buyers, possibly more soon. This (number) is quite big to be sold in KL for such a high-end property,” said Savills Rahim & Co chairman Datuk Abdul Rahim Rahman.

Indeed, at a lofty height of 150 floors and soaring 2,000 ft (609.6m), The Chicago Spire is higher than the current world's tallest building, the Taipeh 101. It is also taller than the Petronas Twin Towers, at one time the tallest buildings in the world. The Burj Dubai at 2,500 ft currently under construction will take the crown. Penang Hill is 2,723ft above sea level.

If you are the proud owner of The Chicago Spire, you may feel that your “castle in the sky” deserves the accolade of the world's most prestigious residential address. In fact, it is already hailed as the world's “most significant residential development.”

With the rest of the world literally at one's feet, it may be difficult for the lucky owners to suppress that “high and mighty” feeling, as their residences spiral over bustling Chicago that is bidding to host the 2016 Olympics. The city has the 19th largest economy in the world with a GDP of US$423bil in 2005.

Although The Chicago Spire commands a premium price over other condominiums in Chicago, the price from US$800,000 for a suite or from US$1.35mil for a one-bedroom apartment is not an issue with astute investors who know a good investment property when they see one. A two-bedroom apartment is priced from US$1.65mil while a penthouse at US$40mil!

Units range in size from 534 sq ft (49.61sm) to 10,293 sq ft (956.25sm) for a duplex penthouse with 360-degree views.

Situated on a 2.2-acre site where the Chicago River meets Lake Michigan, The Chicago Spire is developed by Ireland's Shelbourne Development Group.

Construction began in June 2007. When completed in the fourth quarter of 2011, it will have 1,194 residences where no two apartments are alike. Each suite, gallery and one to four bedroom residences and penthouse will offer a unique floor plan and outstanding city or lakefront views, each designed by Spain's renowned architect Santiago Calatrava. His projects include the Turning Torso Tower in Sweden, Olympic Complex in Greece and the City of Arts and Sciences in Spain.

The Chicago Spire will boast many firsts. Besides being the tallest condominium in the world, it is also the tallest building in North America and the western world. It will also be the most slender super-tall building in the world and will have the world's longest elevator run at 1,864 ft (568.14m). Elevators will transport all residents from the ground floor directly to their floor with average waiting time of 30 to 32.5 seconds.

Since the first sales launch in Chicago on Jan 14 this year, the project had been on a global road show. More than 800 investors attended the recent launch in Singapore and Savills Singapore managing director Michael Ng had reported that “very strong sales were coming from both Singaporeans and expatriates.”

With the US in recession and the credit crunch, will The Chicago Spire fetch an early capital appreciation?

Savills & Co's Abdul Rahim believes that the US economy would recover after the presidential election in November and the subprime mortgage crisis would have tailed off by then.

“Business is booming in Malaysia. We have a growing wealthy middle and upper class, many of them have children studying in North America and many of them have spread their investments over international markets. We are confident the iconic and futuristic nature of the Chicago Spire will have a special appeal to our purchasers and the potential return on investment is very competitive,” he said.

Purchasers, he said, needed only pay a US$20,000 booking fee followed by a 10% deposit after 14 days and another 5% within six months and there would be no more progress payments until the project's completion. “There is a very high probability of purchasers enjoying capital appreciation when the project is completed,” he said, adding that buyers would enjoy a 7.5% guaranteed return for two years.

Shelbourne Development Ltd executive chairman Garrett Kelleher in an e-mail interview said historically, Chicago had not been subjected to the highs and lows of more volatile markets and it had seen sustained growth over 10 years.

He said interest outside the United States had been strong with international investors recognising the opportunities offered in investing in one of the world's major iconic projects.

“We have been overwhelmed by the interest in the project and we are currently on target with our sales. Located on the last available prime spot on the lake, The Chicago Spire's position offers a unique opportunity for buyers,” he said, adding that at US$40mil, the penthouse would be the most expensive apartment in Chicago.

By The Star - Property Talk - (by S.C.Cheah)

Merrill, CLSA raising big Asian property funds

BOAO (China): US investment bank Merrill Lynch and Asian brokerage CLSA are separately raising investment funds focused on Asian property, indicating continued confidence in the region's economies, executives from the two companies said at the weekend.

Merrill Lynch is raising a Pacific Rim real estate fund worth around US$2.5-US$3 billion, (US$1 = RM3.15) Damian Chunilal, Merrill's head of Pacific Rim origination,said yesterday.

It will invest in a variety of types of property across the Pacific Rim, including in India, Australia, Japan and the rest of Asia, he said.

CLSA Asia-Pacific Markets is raising a new roughly US$1 billion pan-Asia property fund that will focus on China, Japan, Taiwan, Hong Kong and Singapore, chairman Rob Morrison said.

Both executives were speaking on the sidelines of the Boao Forum for Asia, being held on the southern Chinese island province of Hainan.

The launch of the funds comes at a time when many investors are looking to Asia as a safe haven in the wake of the credit crunch set off by US subprime woes, as others shop for deals in the US and Europe.

Merrill's fund is part of an increasing push by the largest US brokerage to build up third-party funds to do principal investing, Chunilal said.

"That's very much going to be a model that's repeated in the future with different types of funds," he said. "That's something we are very actively exploring at the moment."

The firm is also currently raising a European real estate fund, Chunilal said, without providing details. He added that other new funds could focus on private equity and possibly infrastructure.

Morrison said CLSA's fund would look to invest about 20-30 per cent of its cash in China. CLSA is the Asia-focused brokerage and investment banking arm of French bank Credit Agricole.

Other global investment banks are also planning to launch funds for Asian property. UBS recently said it plans to launch a roughly US$1 billion fund for investing in China.

Morgan Stanley and global investment firm Blackstone Group are also active in real estate in the region.

While European and US property markets are waning in the wake of the global credit crunch, Asia still shows signs of strength, recording a 26 per cent jump in direct property investment to US$121 billion in 2007, according to consultant Jones Lang LaSalle.

By Reuters

The elegance of E&O

Well-placed lights emphasise the beautiful structures of the hotel

The sun gently slips into the cloudy horizon, casting a pearly pink over the greyish blue waters. The waves lapped gently against the low stone wall which divides the lawn from the Straits of Malacca. Swimmers leisurely lose their calories in their laps in swimming pool.

At Sarkies Corner, waiters lay out the evening’s fare with anticipation. Will the restaurant have another full house this evening? As in yesteday’s evening? Executive chef Bob Lee checks out the Peking duck, giving his efferverscent smile as he welcomes his guests.

Welcome to the famed E&O Hotel in Penang, which boasts of having the longest sea-lined lawn in the country.

Although the famed E&O Hotel in Penang is once again undergoing another round of refurbishment, the movements are hardly noticeable. Unlike its massive restoration programme in 1996, this time around, discretion is the key.

“It’s business as usual. The guests would not even notice it,” says general manager Michael Saxon.

Saxon: Maintenance is an ongoing proce

And how true! One could hear a pin drop as one walks along the corridor to seek the solace of one’s temporary sanctuary. Nary a bang nor the whisper of a drill.

After spending some RM60mil in an 18-month restoration programme, Malaysia’s only heritage hotel is being refurbished for a smaller amount of RM5mil, which also includes training and software, for several reasons.

Says Saxon: “As in any properties, maintenance is an ongoing process. We also want to make sure the hotel stays in pristine condition.”

The other reason is the business the hotel has been garnering of late. For the past 18 months or so, business has increased dramatically, both in terms of occupancy and food and beverage (F&B).

While the rule of thumb in most hotels is 70:30, with revenue from F&B contributing the smaller portion, it is 60:40 over at E&O. Out of eight months in a year, the hotel does about 20 weddings a month.

For a 101-suite hotel, Saxon says there have been times when he counted more than 2,000 guests in the hotel.

Leveraging on its marque as the grande dame of heritage hotels, the E&O Hotel in Farquhar Street has been most popular with foreigners from Britain, USA, Australia and Japan. About 70% of its guests are Westerners.

So far, about 10 suites in the 100-suite hotel have been refurbished and given an all-new modernity set along heritage lines. New carpets and upholstery, new curtains and a more localised use of pictures are being used. Each of the rooms are being upgraded one by one to keep up with the times.

“The move is necessary as the hotel would like to continue garnering premium room rates in today’s competitive hospitality industry,” says Saxon.

Beginning April this year, average room rates increased to RM500, compared with RM250 the last three to five years.

He says the industrial norm is a 10% increase annually, but they have doubled their average room rate in three years.

“But within these three years, there have been a lot of improvements,” he said.

E&O suite tariff vary extensively. A superior suite is about RM900 while the E&O suite is RM10,000. The hotel, which dates back 1885, has several types of suites.

The Rudyard Kipling suite, for example, has been given tastefully austere interiors, with taupe walls and jute rugs on timber floors, predominantly dark stained teak furniture, including an imposing four-poster bed. For contrast, two wicker chairs and a comfortable sofa in a bold black and white floral print.

Says Malaysian interior decorator Mimi Merican: “The challenge for me was to draw inspiration from what we know of Kipling the man, writer and traveller, and have that set the style for the suite.”

The Rudyand Kipling suite

To complete the ambience, a specially commissioned portrait of the man himself, aptly bearing the lines from his book From sea to sea and other sketches: Letters of travel.

Since the E&O group took over Malaysia’s one and only heritage hotel in the late 1990s, the turnaround in terms of look, ambience and maintenance has been dramatic.

“We would like to keep the momentum,” he says.

There have been times when it is fully occupied and the owner Datuk (Terry) Tham has to stay in another hotel.

Its F&B business has been so good that they have set out tents to promote outdoor dining on the Esplanade.

“Sarkies Corner was simply not big enough. So we set up tents outside last year. We did not want to turn away guests. So this current round of refurbishing is really important. It will enable us to have proper set-up for outdoor dining,” says Saxon.

“We upped our prices, guests complained and after two weeks, they were back as before. We are not complaining at all. We are delighted with the situation,” he says.

“In terms of service, we always listen to our guests. There was a time when a guest dining at its fine dining restaurant 1885 requested his table to be taken outdoors under the huge Java tree on the lawn which overlook the Straits of Malacca.

“He wanted to savour both the food and the ambience. We obliged. Another time a former British soldier in the 80s came and asked about the old lift, whether it still worked. He stayed here decades ago and I personally accompanied him on that lift ride. There were tears in his eyes when he got off,” says Saxon.

With Penang becoming a popular spot for medical tourism of late, guest-patients are provided total in-suite service until they are confident enough to leave their sanctuary.

“E&O is not just another hotel. It is history, service, ambience and romance all packaged together under the tropical sky on an island that has become well-known around the world,” says Saxon.

By The Star (by Thean Lee Cheng)

YTL keen on more land buys in KL

It intends to invest in prime locations, says Yeoh

KUALA LUMPUR: YTL group, which is paying a record RM2,000 per sq ft for a piece of land in Jalan Stonor, intends to make more acquisitions in the Kuala Lumpur city centre.

YTL Corp Bhd managing director Tan Sri Francis Yeoh said yesterday that land price in Kuala Lumpur city was “still very affordable'' compared with Asian cities such as Singapore, Ho Chi Minh City, Hanoi and Jakarta.

“We intend to invest in more properties in prime locations in the city, as the Kuala Lumpur property scene is set to be very exciting,'' he said, adding that this was due to Government measures such as the relaxation of approval from the Foreign Investment Committee.

Yeoh said after a briefing on Climate Change Week 2008 that YTL was planning a residential development comprising apartments on the Jalan Stonor land measuring just under 0.4ha, which it acquired for RM85mil.

In line with Climate Change Week 2008, which will be held from April 29 to May 4, YTL has launched the Renewable Energy and Environment Fund (REEF), a green investment fund for the Asia-Pacific.

From Left: YTL director of investment Ruth Yeoh, executive director Datuk Yeoh Soo Min, Tan Sri Francis Yeoh and Syarikat Pembinaan Yeoh Tiong Lay Sdn Bhd executive director Jacob Yeoh.

“The fund offers an international portfolio of clean technology companies involved in carbon credits, recycling and alternative energies such as wind, solar and biofuels, all of which contribute immensely to these solutions,'' he said.

According to Yeoh, green technology was set to be the century's largest economic opportunity.

This is the second fund in which YTL would be a main investor. It is also the principal investor in the Asian Renewable Energy and Environment Fund (AREEF), which was launched a year ago and has reaped 28% in annual returns.

According to fund manager Kumpulan Sentiasa Cemerlang Sdn Bhd, REEF was expected to provide returns of 10% to 15% a year.

Yeoh said that as a key utilities player, YTL had been working on reducing its carbon footprint. For example, almost 39% of the total energy used in its British utility company Wessex Water was from renewable energies such as biogas, biomass, wind and solar.

“With our targets firmly in sight, by 2020 we aim to get 50% of our energy from renewable sources and eventually grow that to 100%,” he said, adding that the company's proposed Malaysia-Singapore fast train project was another example of a good environmental project.

“Just imagine the reduction of carbon emissions as a result of the cars it will replace. It will provide fuel subsidy savings as well,” he said.

To a question, Yeoh said the Government was very supportive of the project and considered it not just another mega project but one that was economically viable as well.

By The Star

YTL boss: Bullet train project is environment-friendly

YTL Corp Bhd, a construction and energy group, says the government is supportive of its plan to build a bullet train between Kuala Lumpur and Singapore as it makes economic sense.

It is also a project that the people seem to want, managing director Tan Sri Francis Yeoh said.

"This project is economically viable, so I think the government will listen to the people and put this project on an urgent basis again.

"Nobody looks at it as a mega project, an artificial project, that you do for prestige," he told reporters after launching the YTL-organised Climate Change Week 2008.

When pressed by reporters as to when he expects to get the greenlight for the project, he said: "I think the government is supportive of this project. We'll see."

The previous transport minister, Datuk Seri Chan Kong Choy, had said in January that the government was conducting a social impact study on the project, said to be about RM8 billion, because it involves land acquisition.

"We are for it (the project)," he'd told Reuters in an interview then.

YTL's bullet train plan involves travel time between KL and Singapore being cut to just 90 minutes compared with existing trains which take about seven hours.

Yeoh said the bullet train project would not only save the government "tens of billion ringgit" on fuel subsidies over the long term, but would also cut down the country's carbon emission significantly.

"This is an environment-friendly project," he remarked.

By New Straits Times (by Adeline Paul Raj)

YTL invests in US$5m green fund

YTL Corp Bhd, a well-known advocate of environmental protection, said it will be the main investor of a US$5 million (RM15.75 million) "green investment fund" launched by local fund manager Kumpulan Sentiasa Cemerlang Sdn Bhd (KSC).

The Renewable Energy and Environment Fund (REEF), meant for global investors, will invest in a portfolio of clean technology companies around the world.

"We have no doubt that clean and green technology is set to be the largest economic opportunity we've seen so far this century," managing director Tan Sri Francis Yeoh told reporters yesterday at the launch of the Climate Change Week 2008.


YEOH: Clean and green technology is set to be the largest economic opportunity we've seen so far this century

KSC director Choong Khuat Hock said YTL would take up "quite a large portion" of the fund, the second of its kind to be issued and managed out of Malaysia.

The first such fund, launched last March, was meant for Malaysian investors and posted a 28 per cent return last year, helped by robust market conditions.

"We're targeting a return of 10 per cent to 15 per cent a year for REEF," said Choong.

YTL was also a seed investor in the first fund, known as the Asian Renewable Energy and Environment Fund. It has a value of about RM12 million to RM13 million today.

Yeoh said activities during this year's Climate Change Week, which will be held from April 29 to May 4, will focus on solutions instead of merely highlighting the problems of climate change.

Activities will include a business conference, a youth workshop and free public screenings of "The 11th Hour", an acclaimed climate change documentary narrated by US actor Leonardo DiCaprio.

More information on the week's activities can be found on www.ytlcommunity.com/climatechange.

By New Straits Times

The Nomad Group to expand new core business

KUALA LUMPUR: The Nomad Group Bhd, previously known as Kuala Lumpur City Corp Bhd, plans to expand its new core business in serviced residences to Penang and Thailand as well as increase the number of its serviced office centres to eight by year-end.

It hopes to acquire a hotel with at least four stars in Penang by middle of the year, chief executive officer Hew Thin Chay said after the company AGM and unveiling of its new corporate identity and logo yesterday.

Hew Thin Chay

The acquisition was estimated to cost about RM70mil, he said, adding that the company was looking at a yield of 6% and above.

On expansion to Thailand, Hew said talks to operate serviced residences in Bangkok were at the early stage but a deal was expected to materialise by year-end.

“We are looking at the location, size and yield of the acquisitions,” he said, adding that the company had net cash and equivalents of RM170mil currently.

Currently, The Nomad Group owns The Nomad Residences SuCasa serviced residences and The Nomad Residences Bangsar, which provide a total of 238 rooms.

“We hope to push the yield of The Nomad Residences SuCasa to 8% from the present 5% and The Nomad Residences Bangsar to 6% from zero yield,” Hew said, adding that the latter was due for launch in July.

Last year, the company acquired SuCasa Sdn Bhd for RM53mil and Bangsar Suria condominiums from Malaysian Assurance Alliance Bhd for RM34.5mil.

On the expansion of serviced offices, Hew said the group would operate two new centres – at Tower 2 of Etiqa Twins and The Gardens at Mid Valley City in Kuala Lumpur – by July.

Currently, it manages two serviced office centres with a total built-up area of 19,259 sq ft comprising 183 workstations in Singapore’s Raffles Place and Menara Hap Seng in Kuala Lumpur. It recently opened a centre at Suntec City Tower 2.

“We are also in the process of closing deals in Ho Chi Minh City and Bangkok,” said Hew, noting that the company rented buildings in city centres to cater to the needs of mobile business travellers.

“We aim to operate eight serviced residences in eight locations by year-end,” said Hew, adding that the company had identified Manila and Jakarta as target locations.

The group registered a net profit of RM7.4mil on revenue of RM20.3mil for the year ended Dec 31, 2007.

By The Star

RM4.3 billion second link

Finance Ministry, UEM Builders and China Harbour Engineering finalise cost for Penang bridge project, says source


ICONIC BRIDGE: The 24km link is expected to be opened by 2011

The Government has finalised costings for the second Penang bridge, setting the figure at RM4.3 billion.

Business Times learnt that the matter was finalised at a meeting held yesterday between the Finance Ministry, UEM Builders Bhd and China Harbour Engineering Co Ltd (CHEC).

"The RM4.3 billion price was given by the government and both parties will now have to adhere to it although each had presented higher costings," a source said.

It is learnt that Second Finance Minister Tan Sri Nor Mohamed Yakcop chaired the meeting, which was also attended by Tan Sri Zaini Omar, who heads a task force for the implementation of the second bridge project.

The 24km second Penang bridge (of which 17km will be on water) will link Penang island and Seberang Prai.

UEM Construction Sdn Bhd - a subsidiary of UEM Builders Bhd - has named port builder and bridge construction firm CHEC as its main contractor for the bridge which will link Batu Maung on the island with Batu Kawan in Seberang Prai.

The source said in setting the final cost for the second crossing project, the government has taken into consideration the rising cost of materials such as steel.

"Both parties must come to an understanding on how they are going to work things out before they sign an agreement on the price," the source added.

It is learnt that the deal will be inked by the end of this month.

The iconic bridge, which will comprise 294 piers and 9,364 sections, will be the longest in South-East Asia and expected to be opened to the public by 2011.

By New Straits Times (by Marina Emmanuel)

RM239million for Penang Cyber City 1 upgrade

PENANG: Government agencies are spending some RM239.6mil to upgrade the infrastructure at Penang Cyber City 1 (PCC 1).

PCC 1 comprises the Bayan Lepas Free Industrial Zone, Bayan Mutiara and the commercial centre of Bayan Baru.

State government investment arm investPenang chief executive officer Datuk Md Aris Ariffin said Tenaga Nasional Bhd (TNB), Telekom Malaysia Bhd (TM), Penang Island Municipal Council Penang Water Supply Corp Bhd (PWSC), and the Drainage and Irrigation Department (DID) were among the agencies implementing the upgrading exercise.

“TNB had allocated RM143mil (from 2007 to 2010) to upgrade electricity supply projects while TM will spend RM45mil (from 2006 to 2010) to increase the broadband capabilities of PCC 1,” he told a briefing on “MSC Malaysia: Giving you the edge through ICT” Thursday.

PWSC would spend about RM9.6mil to upgrade the water supply system, including the supervisory control and data acquisition system, this year, Md Aris said.

By The Star (by David Tan)

Khazanah seeks more investors for Iskandar

JOHOR BARU: Khazanah Nasional Bhd wants to attract more investors from China, India, Indonesia and Singapore to Iskandar Malaysia.

Managing director Datuk Azman Mokhtar said currently, Middle Eastern investors made up the majority of investments in Iskandar, formerly known as the Iskandar Development Region (IDR).

“Everybody is welcome to invest here regardless of where they come from and we’ll always treat investors with the utmost respect,” Azman told StarBiz after attending the fourth Iskandar Regional Development Authority (IRDA) meeting chaired by Prime Minister Datuk Seri Abdullah Ahmad Badawi yesterday.

Abdullah and Johor Mentri Besar Datuk Abdul Ghani Othman are co-chairmen of IRDA.

Datuk Azman Mokhtar

Azman said Middle Eastern investors were attracted to Iskandar for its conducive investment environment.

“We never limit ourselves to investors from certain countries or regions and it so happens that Arab investors are coming here,” he added.

Earlier, at a press conference Abdullah said Iskandar had to date secured total investments valued at RM33bil, representing 70% of the RM47bil target by 2010.

Meanwhile, Ghani told StarBiz that the Malaysia-Singapore Joint Ministerial Committee for the Iskandar development would meet next month.

Asked if Minister in the Prime Minister’s Department Senator Datuk Amirsham Abdul Aziz would take over from former minister Datuk Seri Effendi Norwawi, Ghani said Abdullah would make an announcement soon.

The meeting will be the first after the 12th general election.

Ghani also said the state government would no longer use the terms low and medium cost houses in Iskandar region to better reflect the improvement in public housing.

He said 40% of the property development projects by the private developers in the region would be allocated for public housing scheme.

The allocation of RM200mil under the Ninth Malaysia Plan is for the construction of 2,000 houses in the first phase with a minimum built-up of 850-900 sq ft per unit from the present 650 sq ft.

By The Star (by Zazali Musa)

RM255m property project to boost Tawau's economy

IN PACT: Kong (left) and Abu Bakar exchange documents after the signing ceremony. Looking on are Masidi Manjun (second from left) and SEDCO chairman Datuk Mohd Lan Alani (second from right)

TAWAU in Sabah will get a major economic boost from a new integrated project comprising residential, commercial and hotel developments in one area.

The project, developed by Sabah Urban Development Corp through its wholly-owned subsidiary Perusahaan Pusaka Timur Sdn Bhd, is 1.5km outside the Tawau town centre and is worth RM255 million in gross value.

Pusaka will develop the Kuhara Court condominium, the Eastern Plaza shopping centre and a four- star hotel, to be managed by Promenade Hotel Sdn Bhd.

Promenade Hotel Tawau, which adjoins the shopping plaza, is poised to be the biggest hotel in the area, with 180 rooms over 17 storeys.

According to Promenade's managing director Kong Hock Sian, the highlight of the hotel is its ballroom, the biggest in Sabah, that can accommodate 1300 banquet guests.

"This will be able to facilitate the MICE (meetings, incentives, conferences and exhibitions) need in the east coast," Kong said at the signing ceremony for the hotel management agreement yesterday.

The hotel alone is worth RM60 million. Other facilities include a business centre, a club floor lounge, a gymnasium and a health centre.

The hotel's construction is now 65 per cent completed and is due to open its doors by the end of the year.

Also present were Tourism, Culture and Environment Minister Datuk Masidi Manjun and SUDC managing director Abu Bakar Yahya.

Abu Bakar said that the agency chose Promenade to lead the project because of the success of their current joint ventures in running Promenade Hotel in Kota Kinabalu, and Api-Api Centre.

By New Straits Times (by Julia Chan)

Seremban set to become a city

SEREMBAN is on its way to be declared a city on Sept 9 next year, said Mentri Besar Datuk Seri Mohamad Hasan.

Hasan: 'We are also waiting for the Seremban Municipal Council and Nilai Municipal Council to merge'.

He said the state government has written to the Housing and Local Government Ministry on this and was expecting a favourable reply.

“We are also waiting for the Seremban Municipal Council and Nilai Municipal Council to merge. Once this is done, we could be considered for city status,” he said.

Mohamad said with the merge, Seremban would have more than the required population to be declared a city.

“We would also be eligible as the revenue earned by both councils would be sufficient to run a city,” he said.

The combined population of Seremban and Nilai at present is slightly above 500,000.

The population in Nilai skyrocketed following the setting up of several research and educational institutions such as the Nilai Cancer Institute, Inti International Univer-sity College, Nilai International University College and Kolej Universiti Islam Sains Malaysia had set up operations there.

Once declared, Seremban would be the 13 city in Malaysia after Kuala Lumpur, Johor Baru, Ipoh, Shah Alam, Malacca, Alor Star, Petaling Jaya, Kota Kinabalu, Kuching North, Kuching South, Miri and Kuala Terengganu.

“Once Seremban becomes a city, the people here would enjoy more benefits which includes higher allocations from the Federal government for development purposes,” he said.

Asked if the assessment and quit rent would be increased once Seremban is declared a city, Mohamad said there was no such plan.

On a separate matter, Mohamad said the state government has also instructed the Department of Environment to monitor the construction of the RM100mil centralised pig farm in Sepang.

“We asked the DOE to check if we (the state) would face environmental problems once the facility is in operation. If it doesn’t, then we have no objection to the relocation of the pig farm near our border,” he added,

On financial aid for poor families in the state, Mohamad said to date, some 10,500 families had received assistance from the state government.

“We would be giving aid to another 1,500 families very soon,” he said, adding that this was part of the state government’s social safety net scheme.

By The Star (by Sarban Singh)

Developer builds four more silt traps

The developer of Bayu Segar housing project in Cheras has added four silt traps to the existing two in its construction site to prevent mudflows.

This will bring temporary relief to the residents Taman Mutiara Timur, which was hit by mudflows for the second time on March 24.

The first incident happened in October last year and subsequently the drainage and silt traps were upgraded.

Representatives from the developer IJM Corp Bhd brought Cheras MP Tan Kok Wai and residents on a site visit recently to assure them that necessary measures have been taken.

"With the additional traps, we can expert to reduce 90% of silt," said project manager Lim Hock Seng, adding that a team is on standby to respond to any emergency.

"We will also be building drains later as another preventive measure. We will also upgrade the monsoon drain once City Hall gives the approval," he said.

He assured the residents that the developer would clear all the drains in the affected area.

"The company does not mind the extra costs and will do its best to ensure the safety of residents," he said.

The Bayu Segar housing project started last year and the development comprises 100 semi-detached and bungalow units.

It is scheduled to be completed by the end of August next year.

Tan commended the developer for their prompt response and sincerity.

"We will have an observation period to see if the remedial measures are effective. Nonetheless, the developer has given us the assurance that they will address all the problem," he said.

Tan also said he would urge City Hall to speed up its approval on the monsoon drain.

By The Star (by Yip Yoke Teng)

General Corp shares gain on Singapore building deals

HIGH-RISE EXPERT: Menara Public Bank in Kuala Lumpur is among the projects completed by GCorp

GENERAL Corp Bhd's (GCorp) shares rose the most in three months yesterday after its Singapore unit won two construction contracts totalling S$492 million (RM1.1 billion) in the island republic.

Shares of the property and construction group, which rose as much as 13 sen during the day, closed seven sen or 6.4 per cent higher to RM1.16.



Dealers said investors went for the shares on expectations that the two contracts would help boost earnings.

The group's net profit doubled to RM38.8 million in the last fiscal year ended January 31 2008.

GCorp's unit, the Singapore-listed Low Keng Huat Ltd, won a S$346 million project to build the Hard Rock Hotel on Sentosa Island, and a S$146 milion project to add and alter a retail and hotel podium of the Meritus Mandarin hotel at Orchard Road.

The low-profile GCorp, which specialises in high-rise and commercial buildings, has done some high-profile jobs in the past, including the US Embassy, Menara Public Bank and Ampang Park shopping complex.

In Singapore, it did the Changi Airport hangar structure, the Monetary Authority of Singapore building and Mandarin Garden condominium.

By New Straits Times

The sky's the limit for LCL

The early days were difficult for LCL Corp, with no income for months. But founder and group MD Low Chin Meng's 'stubborn' personality kept the tiny company going. Today, with a RM1billion order book, LCL hopes to be an aggressive regional player and ultimately, the world's largest fit-out company. Sharon Kam reports.

We never tire of stories about Malaysians who beat the odds and achieve success. LCL Corp Bhd's founder and group managing director Low Chin Meng is one such story.

From a tiny interior renovation outfit, LCL Corp has bloomed into a Main Board-listed company with 24 subsidiaries and seven manufacturing plants. Its order book has breached RM1 billion, mainly from overseas projects, the bulk of which is in real estate boomtown Dubai.
Low says it is his "stubborn" personality that saw him through the early days of going without income for months, when the company was "a one-man show".

"If I want something, I will try my very best to go for it," he says.

Born and bred in Kajang, Selangor, Low has set up the company's base and manufacturing plants there as well.

"Our focus may be overseas but our home is here. We will be a billon-ringgit turnover company in a year's time, which is very soon. We are hoping to be one of the most aggressive players in the region and ultimately to be the world's largest fit-out company," he says determinedly.
Low dropped out of school when he was 15 so he could start working to contribute to the family income. "My parents were rubber tappers. My mum was ill for some time and she passed away when I was 15. I could not afford to continue school. What's more, I had two younger siblings to take care of. So I decided to quit school and took up carpentry with the help of some relatives," he shares with City & Country.

With his skills as a carpenter, he worked for various companies but harboured an ambition to one day be his own boss.

"When I started working, I was earning only RM5 a day. It was definitely not enough for the family so I thought the only way I could earn more was to have my own business," says Low. "I did not know a single word of English when I left school but I knew that if I were to succeed in business, I had to learn."

So Low picked up the English language on his own and now speaks it fluently.

At 23 years of age, he and two of his colleagues at the furniture company for which they were working decided to set up LCL Furniture Construction and Engineering Works, a partnership company with each of them paying RM500 from their pockets. LCL is the acronym of their surnames. The other two partners left the company a few years later but the name of the company was retained.

"We had no working capital. Life was very difficult. There were no weekends, long hours every day because we had to do everything ourselves. We tried to get our hands on whatever projects we could find. What we did was we subcontracted some work to factories to produce the furniture or whatever we needed. So we were like fit-out management contractors."

Their big break came with the development of the Kuala Lumpur International Airport. (KLIA) "This was our turning point in becoming a key player in the market."

LCL had been doing some small jobs for Malaysia Airlines at the old Subang Airport so when tenders were called, LCL was selected in its bid for some of the main fit-out packages for the KLIA.

After KLIA, their next major development in the country was Putrajaya. "We were and still are very involved as an interior contractor for government buildings and offices there," Low says. These included the Finance Ministry, the Foreign Affairs Ministry and the National Registration Department.

As a fit-out company, LCL stands out because it produces its own components, making it a one-stop interior fit-out centre. Its wood division produces generic and loose wooden furniture as well as customised built-in furniture. Its other divisions comprise metal and stainless steel, plaster, stone, and fabric and cushions. Most of these were acquired when they were LCL's subcontractors. "About 70% of the fit-out materials for our projects are produced ourselves. Because of this, we could expand overseas. We can deliver the A to Z of fit-out. Today, we have 600,000 sq ft of production space in the form of factories and plants," says Low.

Producing its own materials results in quality control and punctual delivery. "We realised that this is important in this business. The client is willing to pay for quality and punctual delivery. For example, if we want to run the factory 24 hours, we can. If we subcontract it out, we have no say.

"Our current production capacity is enough to meet at least 60% of the needs of our current projects, which means we outsource 40% and we will maintain this ratio for some years," offers Low.

LCL's expansion overseas began soon after it was listed in 2004 on the Second Board of Bursa Malaysia. It selected the Middle East and India as the main countries for its expansion abroad.
The focus on the Middle East is not difficult to understand since there is a real estate and construction boom there. "There are a lot of new buildings coming up there, so it gives us a lot of opportunities, which could last for many years. Demand for our kind of business is high. They are also paying us a good premium, giving us a high profit margin," says Low.

But the real estate boom in Dubai is not the only reason LCL is there.

The group's underlying strategy is to "go where the oil flows", says Low. "Where the oil flows is where the people have the spending power and would be willing to spend on the best of everything."

This is also the reason it has ventured into Kazakhstan, located in the region that has the third-largest oil reserve in the world, according to petroleum scientists.
LCL's Middle East office is based in Dubai but it also has an office in Doha and is entering Abu Dhabi and Bahrain.

"As one would have noticed, the buildings there are not just buildings. They build the ambience, the lifestyle. A hotel is not just any hotel and they are willing to spend and develop the best," Low explains.

However, to balance things out in case things got too "hot" in the Middle East, LCL has built its presence in India as well. "We find that it is an up-and-coming market, where there is room for upgrading of living standards. The population is big and if just 1% or 2% of the population can afford our product, it would be big enough for us," Low offers.


The Breeze Lounge at Westin Langkawi Hotel was fitted out by LCL

LCL has signed a strategic partnership with IJM to focus on interior fit-out (IFO) projects in India and has since delivered several boutique hotels there, including the Novotel Hotel, Hyderabad, India (completed in 2006) and Ista Hotel also in Hyderabad, completed recently. It has also been appointed by Sun Gumberg, a joint venture between JJ Gumberg and Sun Group, as the IFO contractor for their proposed mixed development projects in India. The appointment is for eight years.

The first two years of its entry into a foreign market are used to build a strong foundation in the respective country. "We did a lot of market research, getting to know the local social and business cultures, made contacts and build networks. Only in 2006 did LCL take on large projects worth more than RM100 million each and today, we have close to RM1 billion worth of projects in hand. We believe the numbers will continue to grow for the next few years," says Low.

In 2006, overseas projects contributed 30% to the group's turnover. The following year, the contribution shot up to 70% and this is estimated to climb to 85% this year.
"We also achieved a 70% growth in group turnover last year and for this year, we are targeting 100% growth," says Low.

To date, LCL has sent about 1,000 Malaysians abroad working for LCL. "About 70% of our staff overseas are Malaysians because they have the skill. We train them and we provide them their basic needs."

LCL also has its board members to thank for its successful ventures overseas. "If you look at the members of our board, some of them are former ambassadors who, through their experience, network and advice, helped us establish ourselves there. So, we need to give them credit."
LCL's first major project in Dubai was the Atlantis Hotel in the Palm project, worth RM108 million, secured in April 2006. A year later saw the company securing several contracts, beginning with a RM34.2 million contract for the Palm Juneirah Aarina Apartments in April 2007. The following month, it secured a RM119.6 million contract for the Dubai Marina Mall and Hotel. This was followed quickly by contracts for the Prime Tower Office tower worth RM60 million and the Burj Dubai Mall Hotel worth RM139 million.

In January this year, it secured a RM145 million contract for the Tiara United Towers hotel and serviced apartments and in February, it won a RM295 million contract to furnish 14 Red Line stations for Dubai Metro System's fully automated light rail transit network.

LCL is currently bidding for the fit-out package for JW Marriot Hotel in Kazakhstan. It is also actively seeking to establish a foothold in the new markets of Bahrain and Libya and has submitted bids for some projects in these markets. LCL is also bidding for contracts in one of the Singapore integrated casino developments. Locally, it is eyeing opportunities in potential developments in the recently launched economic corridors. It is also looking at a number of high-end hotels that are due for refurbishment.

By The EDGE Malaysia - City & Country

Crescendo to launch RM166mil projects

PETALING JAYA: Crescendo Corp Bhd intends to launch about RM166mil worth of industrial and commercial properties over the next two years, says managing director Gooi Seong Lim.

“We hope the property segment will perform better in the current financial year,” Gooi told StarBiz in a telephone interview recently.

Gooi Seong Lim

In the fourth quarter ended Jan 31, net profit surged 114% to RM9.4mil compared with RM4.4mil in the previous corresponding period.

Revenue jumped 150% to RM44.1mil from RM17.6mil before. Crescendo had attributed the improvement to higher sales of industrial properties.

So far, Crescendo has launched RM269mil worth of industrial properties, RM131mil residential and RM80mil commercial units.

The unbilled portion so far is about RM80mil, thanks to the good sales of factories in the Nusa Cemerlang Industrial Park (NCIP), which has a total gross development value of RM1bil.

After completing the first batch of 50 factories in NCIP, it is now pre-building the second batch of 40 units.

Singaporeans are the main buyers of its factories in NCIP. The risk of a global economic slowdown will prompt manufacturers to be more cost conscious.

“It’s only logical (for Singaporeans) to move to NCIP given the huge cost difference between Singapore and Johor. NCIP is just 10 minutes’ drive from Tanjung Pelepas Port and close to Tuas, Singapore. Singaporeans would be able to control operations due to the close proximity,” Gooi said.

Crescendo is also confident of its pre-building strategy, which allows it to lock in cost earlier. “It makes us more cost competitive than our peers given the rising and firm prices of building materials,” Gooi said.

He said sales of commercial and residential units were doing “reasonably well.” The launches are usually in small packages of about 50 to 60 units each.

Meanwhile, the company plans to double capacity of its concrete manufacturing by setting up a second plant.

Demand for concrete manufacturing continued to be firm, thanks to the location of its two ready-mix plants in Nusajaya, Gooi said.

TA Securities, in a recent report, said Crescendo’s ability to switch between residential, commercial and industrial developments set it apart from its competitors.

The higher manufacturing capacity would also allow it to export grade concrete piles and precast concrete products for local and Singapore consumptions, said the brokerage, which has a “buy” call on the stock.

By The Star - StarBiz - (by Yeow Pooi Ling)

UEM to unveil Nusajaya master plan

Zulkifli Tahmali (right) at the briefing. With him are Stephen Barlow (left) and Andrew Goodman.

NUSAJAYA: UEM Land Sdn Bhd will be unveiling its Nusajaya Security Master Plan, making the city the first in the country to incorporate integrated security in its infrastructure planning.

Strategic marketing, corporate communications and facilities management director Zulkifli Tahmali said the “Blueprint” would cover the entire development.

He said feedback from potential local and foreign investors showed that security and safety was a prime concern.

“As master developer of Nusajaya City within the Iskandar Development Region (IDR), the company needs to address and prioritise the issue,” he said at the pre-launch briefing of the plan, which will be unveiled tomorrow at the two-day Nusajaya Security Conference 2008.

The plan was developed by Australia’s leading security consultancy services group Sinclair Knight Merz (SKM) with GE Security as facilitator.

Zulkifli said the plan would cover the entire 9,712.45ha project including commercial buildings and residences.

“Investors and relevant authorities are happy that UEM is taking the lead to ensure safety in Nusajaya and it augurs well for its development and IDR in general,” said Zulkifli.

SKM global security manager Stephen Barlow said the main challenge was to develop a system to cover a wide area such as Nusajaya whose population was expected to swell to 500,000 by 2025 from 75,000 currently.

Meanwhile, GE Security general manager for Australia, New Zealand and South-East Asia, Andrew Goodman said UEM, SKM and GE must ensure that the plan was consistent with and practical for the long-term development of Nusajaya.

He said the plan involved co-ordination, co-operation and collaboration between all relevant parties such as the police, emergency service providers, developers, owners, operators, designers, installers, suppliers and contractors.

By The Star (by Zazali Musa)

Penang may see more German investments

POTENTIAL INVESTORS: Ruffert (right) talking to Penang Chief Minister Lim Guan Eng after business-matching meetings. German firms are keen on more tie-ups.

GERMANY, the country's second largest foreign investor in the manufacturing sector, could step up investments in Penang, if a Malaysian-German business-matching event held on Tuesday bears fruit.

The importance of the matching-making efforts were underlined by the Malaysian-German Chamber of Commerce (MGCC), which had for the first time, led a whole German business delegation to the northern state.

German firms had pumped in some RM3.7 billion worth of investments into Malaysia, are keen on more tie-ups.

"We are looking for opportunities with potential partners... and of the 50 meetings held in this country, some 30 meetings were held in Penang," said Baden-Wurttemberg (BW) International's executive manager (international business cooperation for Asean) Christina Ruffert.

BW, Germany's third largest state, is the home base of industrial giants such as Daimler, Bosch, Porsche and SAP.

Some six German companies engaged in industries - such as furniture, metal processing, electrical and electronics, private equity investments for real estate and machines and tools - took part in the meetings.

Penang, the country's third most industrialiesd state after Selangor and Johor, houses an estimated 16 German companies in diversified fields such as semiconductor, medical devices, logistics and fine jewellery.

Among the noteable German names in Penang are Osram Optosemiconductor, B Braun Medical Industries, Robert Bosch, Schenker and OE Design, which employ more than 10,000 people in the state.

By New Straits Times (by Marina Emmanuel)

Lion's Cheng, partners to invest RM7.7b in Dream City

The Lion Group's founder and owner, Tan Sri William Cheng, and several business partners will invest 17 billion yuan (RM7.74 billion) in a film studio and theme park in China's Yunnan province.


Private: Cheng's project doesn't involve Lion Group, say a source

"This is a private undertaking by Cheng. It doesn't involve any listed subsidiaries under The Lion Group," said a source close to Cheng.

The source also said that Cheng's business partners were not related to the listed subsidiaries or privately held companies under The Lion Group.

Bloomberg reported yesterday that the project, called Dream City, will be completed in five years and that the first phase of the project will cost three billion yuan (RM1.37 billion).

The project comprises a film studio, amusement parks, hotels, golf courses and a film school, said the report.

According to Hong Kong's The Standard online newspaper, Dream City will be equivalent to Universal Studios in the US.

It also said that Hong Kong-based film director Stanley Tong, who produced "Stone Age Warriors" and "Supercop", is involved in the Dream City project.

By New Straits Times (by Jeeva Arulampalam)

Hektar REIT eyes more mall acquisitions

KUALA LUMPUR: Hektar Asset Management Sdn Bhd is keen on more mall acquisitions for its Hektar real estate investment trust (REIT), following the acquisition of a hotel and a mall in Johor in mid-February.

The company, which manages the pure-play retail REIT, was looking at “a few more acquisitions this year,” said chief financial officer and director Zalila Mohd Toon.

“We have narrowed down a few (malls), however, we need to do more due diligence in this area,” she told The Edge in an interview recently.

“We’re looking at acquiring malls in the Peninsula and East Malaysia that fit our criteria and financial quantum,” she added.

Hektar REIT’s most recent acquisition is Wetex Parade, a property in Muar, Johor, comprising a mall of over 178,000 square feet net lettable area and a 156-room hotel for RM117.5 million.

The acquisition, which is expected to be completed in early May, will boost Hektar’s asset size by 21% to RM679 million.

The two other malls in its portfolio are neighbourhood malls Subang Parade and Melaka’s Mahkota Parade. Hektar REIT’s gearing level post Wetex Parade acquisition was 41%, Zalila said.

Zalila said Hektar REIT was also embarking on the refurbishment of Mahkota Parade and Subang Parade, with plans to start construction on the Subang Parade expansion early next year.

Commenting on the effects of the US subprime mortgage crisis and current global economic conditions on the business, Zalila was confident that neighbourhood malls would survive a recession.

“Neighbourhood malls are highly resilient to economic conditions. Consumers still flock to these malls to purchase
necessities,” she said.

“We are working hard to keep our word and give the returns to investors, we hope to increase returns to investors,” Zalila said, adding that it was confident of achieving the 2008 targets.

Hektar REIT is listed on the Main Board and has a market capitalisation of RM473.6 million. The REIT has projected a dividend per unit of 10 sen and dividend yield of 7.29% for the 2008 financial year. Its share price closed at RM1.48 on Friday.

Hektar Asset Management’s parent Hektar Klasik Sdn Bhd last month inked a joint venture with Singapore-based Frasers Centrepoint Asset Management (Malaysia) Pte Ltd (FCL), sealing FCL’s acquisition of a 40% stake in Hektar Asset Management.

By The EDGE Malaysia (by Sharmila Ganapathy)

Far East to tap Malaysian assets

Hong Kong group may use properties for RM800m REIT, sources say


Hong Kong-listed hotel and property group Far East Consortium International Ltd may set up a real estate investment trust (REIT) comprising several Malaysian assets worth some RM800 million, sources say.

The trust vehicle may be listed either on Bursa Malaysia or the Singapore Stock Exchange.

If this plan takes off, it would be Far East's second planned REIT as it is also spinning off seven hotels for a listing in Hong Kong and raising HK$4 billion (RM1.64 billion) from this exercise.

One source told Business Times that the properties would include Far East's hotels here and possibly even one property owned by Malaysia Land Properties Sdn Bhd (Mayland).

Far East and Mayland have a common shareholder in Tan Sri David Chiu Tat-cheong. Chiu is the deputy chairman of Far East.

Far East may sell Malaysian properties such as the four-star Dorsett Regency in Bukit Bintang, Kuala Lumpur, the five-star Sheraton Subang and the Grand Dorsett Labuan Hotel (previously known as Sheraton Labuan).

The recently-completed Maytower Hotel Serviced Apartments and soon-to-be-ready RM100 million hotel in Johor Baru will also be part of the trust.

"All the hotels would add up to a value of about RM500 million," the source said.

Apart from Far East's own properties, Mayland may pump in the Hartamas Shopping Centre into the REIT, adding another RM300 million to the size of the property trust.

Business Times was unable to contact representatives from the companies.

Meanwhile, it is believed that Far East prefers to list the REIT in Singapore as the REIT market there is more mature and Singapore offers better perks for the listing.

Compared with Singapore, the Malaysian market is said to offer less incentives for the listing of REITs.

For example, the withholding tax for foreign investment is 10 per cent. In Malaysia, the tax is 20 per cent.

"They (Far East) are still considering where to list," the source said, adding that its decision could be swayed by rulings which could make it more favourable to list in Malaysia.

By New Straits Times (by Vasantha Ganesan)

Historic makeover - Sentul West and East show how a once decaying area can be given an invigorating new lease of life

The d6 commercial units contain garden office suites


Unconventional layouts such as this, which provide for walkways opening to the sky, have led to brisk sales

The old has found its place in the future with the adaptation of landmarks to suit new uses

Kuala Lumpur’s skyline is becoming quite heavily dotted with cranes of the mechanical kind. Though nothing like the world cities of Dubai or Shanghai, it is obvious that the country’s capital and financial centre is punching above its weight and fast becoming a happening place.

Powered by an economic boom, KL is a city furiously on the move, growing with iconic skyscrapers designed by some of the world’s best architects that are transforming numerous sites within and around the city centre.

In the KL Golden Triangle, the 88-storey Petronas Twin Towers in the Kuala Lumpur City Centre project has helped put KL on the world map and taken some development pressure off the city’s original downtown precinct. And in the city fringe location of Sentul, the Sentul West and Sentul East urban renewal projects promise to enhance quality of life, improve environmental sustainability and augment value for those who opt to invest in them.

Seeing is believing
Without a doubt, the capital has been reinvigorated by the physical transformation of Sentul, which until early this millennium was plagued by derelict buildings, traffic congestion and the absence of leisure and recreational amenities for the community.

Though rich in history – its origins go back as far as the late 1800s, when it was a bustling commercial area centred around the main railway station – neglect and increasing criminal activities caused the area to decay.

Visitors to Sentul today P8 u PROPERTY NEW STRAITS TIMES SATURDAY, APRIL 5, 2008 would find this hard to believe. Several international celebrities, including world-famous shoe couturier Datuk Jimmy Choo, members of the country’s royalty and the expatriate community began making the place their home when The Maple at Sentul West condominium was offered for sale in July 2003.

Since then, the project has appreciated some 62 per cent from its initial launch price of RM260psf and can generate annual returns of 13.5 per cent!

Sentul’s pearly lustre
Credit for Sentul’s transformation must be given to public-listed YTL Land & Development Bhd (YTLLD), a subsidiary of YTL Corp Bhd, which recognised the area’s potential in the early days.

It knew that historic landmarks can add value, provide aesthetic interest and enhance marketability of the properties surrounding them. And it knew these landmarks could become more precious as the world becomes more developed.

These were among its reasons for undertaking the redevelopment of a 294-acre site in the former railway town, and why Sentul’s history has managed to find a place in the future.

An example is the former locomotive superintendent’s office, which is now the Sentul West and Sentul East Sales Gallery – the one-stop centre showcasing the two very different lifestyles that define the area today.

Lifestyle amenities at Sentul West
Sentul West’s character is depicted by the 35-acre Sentul Park, a former golf course that was transformed into the country’s first and only private gated green lung in July 2006.

Also giving the precinct its unique identity are the KL Performing Arts Centre (KLPac) and the Sentul Park Koi Centre, two attractions that have gained international recognition.

KLPac, which was created to “bring the arts to the community”, won the Special Award for National Contribution in the 2007 Malaysia Property Awards competition organised by the local chapter of the International Real Estate Federation (or Fiabci), while the Sentul Park Koi Centre, which opened in February 2006, is the only one of its kind outside Japan dedicated to the art of Koi breeding.

Last year, 16 of the 22 Koi it produced went on to win prizes at the 2007 All Japan Combined Nishikigoi Show.

(The masterplan of Sentul West and Sentul East was also recognised by Fiabci last year as being the best in the country.)

Exuding exuberance in Sentul East
In contrast to Sentul West, Sentul East has become known as a lively and energetic hub for the younger professional urban set.

Residential accommodation here comes in the form of The Tamarind and The Saffron condominiums, which struck such a chord with buyers that their units have so far appreciated between 27 and 45 per cent.

The 498-unit Tamarind was launched in May 2002, while the 467-unit Saffron was unveiled just over four years later in July 2006.

YTLLD’s commercial offering, the d7 and d6 retail shops and boutique offices, too have experienced enthusiastic response.

When the first, d7, was launched in September last year, it took just an hour for 100 units to be sold while 90 per cent of the d6 units were sold when they were put on the market in January this year, despite being 20 per cent pricier.

This goes to show the sway Sentul East’s trendy, carefree-lifestyle theme and cosmopolitan urban environment have over its target audience, comprising those in creative fields as well as professionals such as architects, designers and lawyers.

Of course, credit to the sales performance should also be given to the unconventional way the units were designed, with the d7 containing Small Office Home Office (SoHo) suites and the d7 with Sky Offices.

Making things happen
Since YTLLD stepped foot into Sentul, it has done things only a few other developers – or local councils, for that matter – have managed.

It bought into a run-down and fast decaying area, but in a matter of just six years, returned to the city a highly liveable and invigorating address that is being energised by KL’s beautiful people.

Should other parts of the country be in need of a role model as they embark on reinvigoration or transformation exercises, this is where they should look.

By New Straits Times (by Lim Lay Ying)

Lim Lay Ying is managing director of Research Inc (Asia) a company specialising in market research and consultancy for all facets of real estate development.

SunCity rocks the high-end set

Unveils the first landed residential option in its much anticipated Sunway South Quay

The BayRocks bungalow villas (right) make up part of the integrated commercial, recreational, educational and residential development that is Sunway South Quay

The enclave's 77 units will enjoy panoramic lake views

It certainly does pay to be rich and influential in the Klang Valley.

While prospective buyers eagerly await the latest news on Sunway City Bhd’s (SunCity) much anticipated Sunway South Quay development, word has it that the developer is already offering the privileged few the opportunity to register their interest in its yet-tobe- launched first phase.

According to sources, invitations to its BayRocks residential enclave were sent out to a platinum list two months ahead of the expected launch date in May.

With starting prices said to be in the region of RM4.5 million, it’s little wonder that SunCity is addressing the elite crowd.

The exclusive enclave, housing 77 luxury bungalow villas, makes up part of a RM3.7 billion high-end integrated community the developer describes as its “cream of the crop”.

The 178-acre Sunway South Quay within Bandar Sunway in Selangor is designed to be a vibrant waterfront precinct comprising a mix of designer residences, upmarket business and serviced suites as well as commercial components.

They will take shape around a 28-acre lake, with the BayRocks residences fronting it.

Although SunCity has yet to make details of the phase public, it is understood that it will comprise bungalows of 6,500sq ft to 7,000sq sitting on land of between 7,164sq ft and 11,346sq ft.

Buyers will have six designs to choose from.

Future residents at BayRocks will not only enjoy a panoramic view of the lake, but also benefit from the green theme planned for the community, which will be enveloped by extensive landscaping.

SunCity said Sunway South Quay is “the next level in the company’s vision to provide authentic resort living within the city”.

“It will be an incomparable benchmark in high-end lifestyle in a location that continues to grow in prominence among both local and international investors.”

The location is served by highways such as the Federal Highway, New Pantai Expressway, the Damansara-Puchong Highway and the Shah Alam Expressway.

In addition to BayRocks, another residential component that has been put on the starting block is a RM200 million condominium, which has already been sold en-bloc to Korean investors.

By New Straits Times (by Chris Prasad)

For detail information, please visit the website: www.sunwaycity.com

Time to join global bandwagon

Now, there's a body to encourage greater investments in Asia Pacific real estate

Owners and developers looking to be part of a community that is working towards putting the region’s real estate on the global investment radar could consider membership in the Asian Public Real Estate Association (Aprea).

This private NGO is shaping up to represent Asia Pacific’s publicly traded real estate sector, and has 125 members to date. Among them, listed property companies, property trusts, investment banks, property securities fund managers, real estate consultants, corporate advisers, service providers, investment researchers and even teaching institutions.

Formed in June 2005, Aprea’s founding members include ARA Trust Management, Ascendas-MGM Funds Management, Westfield Group, Macquarie Bank and Hongkong Land.

According to Aprea, its aim is to “unite the currently fragmented Asia Pacific publicly listed real estate sector” and encourage greater investment by delivering a clear message from the industry to investors and the media.

It is also keen on ensuring appropriate representation in global indices, improving the operating environment for members via tax efficiency and enhanced regulatory frameworks and unifying the industry through an integrated platform.

These ambitions seem to dovetail with the effort by many Malaysian entities to market their properties abroad, and with the government’s objective of branding the country an International Property Destination.

Views that Asia is a riskier investment prospect compared to Europe or the United States are also being addressed by Aprea.

The body said this will come by encouraging members to adopt international best practice standards and the development of a robust reporting and corporate governance structure

With the removal of impediments and negative impressions, Aprea said capital inflows will be faster and more efficient.

Following its setting up of offices in Hong Kong/Macau and Japan, it recently opened its Singapore chapter.

Aprea chief executive officer Peter Mitchell said the island republic’s listed real estate market is one of the world’s fastest growing and the new chapter is the result of its increasing attractiveness to the global investment community.

Singapore has the second largest Real Estate Investment Trust (REIT) market in the region with a capitalisation of US$21.6 billion (US$1=RM3.20) – US$24.4 billion less than first-place Japan.

In third place is Hong Kong with US$8.5 billion, followed by Taiwan (US$1.7 billion) and Malaysia (US$1.6 billion).

Despite the United States’ subprime mortgage crisis and global credit crunch, Mitchell said “2008 will present a period of good opportunities for companies that are well capitalised and don’t rely on credit”.

Describing the REIT markets in Japan, Hong Kong and Singapore as mature, he said the general slowdown in the global economy could see a return to fundamentals.

“We have seen the end of financial engineering,” he said, adding that large institutional investors such as US pension funds are now allocating sizeable budgets to Asian real estate.

Last year, the California Public Employees’ Retirement Scheme (CalPERS) and California State Teachers’ Retirement Scheme (CalSTERS) increased their exposure to Asian real estate by six to eight per cent, with CalPERS investing US$1 billion.

Australian funds, too, such as National Australia Bank’s structured property finance business, nabCapital, plans to make more inroads into the region following demands by its clients for the company to “take a more active role in sourcing opportunities in Asian real estate”.

Hong Kong’s and Singapore’s REITs, Mitchell said, are beginning to mature as an asset class and “unlike the US economy, Asian economies are expected to rise” which would further drive their REITs.

To accelerate the pace, he said Aprea is seeking to introduce “international best practice standards (as well as) sponsor and publish research and analyses”.

By New Straits Times (by Zoe Phoon)

JLand to build presence in Mideast

MAJOR PROJECT: Johor Land’s semi-detached units in Bandar Dato Onn, a township which will be developed over 10 to 15 years.

JOHOR Land Bhd (JLand), the property arm of Johor Corp, is keen to develop properties in the Middle East and plans to start by offering its technical expertise, its top official said.

It has been approached by a Saudi Arabian investor who have access to land bank to provide assistance in building residential properties.

The talks, if successful, could see the developer exporting its expertise as early as next year.

"We are keen to do property development in the Middle East. We would like to go as a technical partner first and later into property development if it proves to be financially viable," managing director Shafiqul Hafiz said.



"We have been approached by a Saudi Arabian company and we are in discussions for technical cooperation for residential projects," Shafiqul told Business Times.

Technical cooperation, he said, would entail consultancy ranging from planning to design and marketing.

JLand had in fact announced its move into Bangladesh to build apartments and a factory but the deal was aborted due to the economic conditions there.

Apart from projects abroad, Jland is also looking at venturing into other states in Malaysia.

"We are open about it (acquiring land in other states), but we would prefer to build properties for others who own land," he said.

JLand has some 1,215ha of land in Johor, all of which are located within the Iskandar Development Region (Iskandar).

"There have been many enquiries (to purchase our land) but we have declined as we will develop the land ourselves," he said.

"However we would consider if there is something special that a party can offer, for example, a joint venture which can add value to our Bandar Dato Onn project by bringing in foreign investors to buy our properties," he said.

Bandar Dato Onn is one of the four major property development projects that JLand is currently undertaking in Johor.

"Bandar Dato Onn covers a 607.5 area; 526.5ha in Taman Bukit Tiram, Ulu Tiram, and 162ha in Taman Bukit Dahlia, Pasir Gudang," he said.

The Bandar Dato Onn township, located 10km from Johor Baru, will be developed over 10 to 15 years on freehold land. The project has a gross development value of RM4 billion and will provide JLand with RM1.2 billion in gross profits.

Shafiqul also believes that it will benefit from the launch of Iskandar, which emphasises on growth sectors like tourism, education, healthcare, logistics, creative industries and financial services.

Meanwhile, JLand is confident that the company will perform better in the year ending December 31 2008 compared with 2007 and possibly even better than in 2006. For 2007, it registered RM63.36 million revenue, down from RM77.66 million in 2006. Net profit declined to RM6.69 million from RM17.75 million the year before.

By New Straits Times (by Vasantha Ganesan)

JLand plans RM250m specialist hospital

JOHOR Land Bhd (JLand) will build a 250-bed specialist hospital within Bandar Dato Onn, Johor, that will be managed by sister company KPJ Healthcare Bhd.

To be ready in 2010, the hospital is estimated to cost RM250 million to build and equip. It is positioned to offer the latest facility and be very patient-friendly.

"The hospital will be hassle-free. It is designed that way," JLand's managing director Shafiqul Hafiz told Business Times.

It will be leased to KPJ when ready in 2010.

Shafiqul said that JLand and a yet-to-be-finalised investor will finance the project.

Together with the hospital, a nursing college called Puteri Nursing College and a retirement home will be built in the township.

Both JLand and KPJ Healthcare are majority-owned by Johor Corp. JLand, incorporated in 1972, was listed on Bursa Malaysia in 1996.

Today, JLand has some 1,215ha for development in Johor. In collaboration with Johor Corp, it has delivered over 24,000 residential and 1,300 commercial units.

JLand is also broadening its revenue base with a barter trade terminal project in Sabah.

It is buying 51 per cent of Windsor Trade Holdings Sdn Bhd (WTH), which has an 80 per cent subsidiary, Windsor Trade Sdn Bhd. Windsor Trade has been granted a 30-year concession to operate Sandakan Integrated Trade Exchange Terminal.

"The acquisition will be completed in the second quarter of 2008. It will start to contribute (to the group) in early 2011," he said.

WTH will develop an integrated barter trade terminal complete with various facilities on a 13.6ha area at Batu Sapi, Sandakan. The terminal will cater to traders from Asean countries.

The development cost of the terminal is estimated at RM315 million including land, pre-development cost, construction of infrastructure and buildings and equipment.

By New Straits Times (by Vasantha Ganesan)