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Wednesday, June 11, 2008

Largest mall in Borneo opens


Shopping paradise: 1Borneo is the latest mall to open in Kota Kinabalu Sunday.

KOTA KINABALU: The opening of Borneo’s largest hypermall, 1Borneo, has the potential to place Sabah among the top regional shopping destinations, Chief Minister Datuk Musa Aman said.

He said 1Borneo was an added attraction here for shoppers seeking bargains and branded goods and was part of the state’s efforts to diversify its tourism products, currently best known for its natural eco-tourism activities and destinations.

Calling for the tapping of shopping tourists who fly to regional centres like Kuala Lumpur, Manila, Singapore and Bangkok, Musa said it was important for the state to draw in these tourists, especially those living within three to six hours flying time of the city.

“We should keep striving to create new attractions and malls such as 1Borneo are one such product,” he said at the soft opening of the RM1.2bil hypermall, which was jointly developed by the state-owned Warisan Harta Sabah Sdn Bhd, Sagajuta (Sabah) Sdn Bhd and United Sabah Islamic Association, owner of the 10ha site.

The mall has 139,354 sq metres of shopping area, and among others, has four international chain hotels, condominiums, an Auto City, oceanarium and Discovery Centre, handicraft cultural centre and a cineplex among others.

The state was projected to increase tourism receipts from RM2.88bil in 2006 to a whopping RM48.5bil in 2025 through the initiatives outlined in the 18-year Sabah Development Corridor blueprint.

Musa also hoped that retailers opening shops in 1Borneo would employ local youths being trained in government and private colleges.

By The Star

SuMo arrives at Bukit Jelutong

You may think it's from Japan or it's about wrestlers, but it's neither


The 70,000sq ft covered central courtyard will be the focal point to showcase products and services and for events.

By the first quarter of 2010, Mainstay Development Sdn Bhd's creative landmark at Section U8 of Bukit Jelutong in Shah Alam, Selangor, is expected to open its doors to tourists, shoppers and businesses.

The freehold Space U8, featuring shop offices on the outer frontage and retail outlets on the inner frontage, will be the first commercial project of its kind there to be built on the Shop Unit Mall Office (SuMo) concept of dual front-age, which combines business and leisure under one roof in keeping with contemporary lifestyles.

Mainstay Development chairman Raja Azmi Raja Razali, who was formerly chief executive officer of Fly Asian Xpress Sdn Bhd ( now known as AirAsia X), said Space U8 - named thus "to emphasise spaciousness" - will be erected on a triangular-shaped site of 8.39 acres and comprise 58 shop units housed in four storeys.

The 46 intermediate units measure 9,000sq ft each while the eight end units and four corner units vary from 10,000sq ft to 12,000sq ft.

The project, which has a gross development value of RM220 million, includes a four storey attached complex with 84,000sq ft that will be occupied by the anchor tenant. The development will have 1,300 car-parking bays and 24-hour security monitoring.

Raja Azmi said Space U8 will feature airy corridors, open stairways, spacious units and natureal light from a 70,000sq ft covered courtyard, which will be the project's focal point for tenants and residents to showcase products and services, and for other uses such as weekend markets, events and festivities.

He noted the integration of shop units, the anchor tenant complex and bustling courtyard will make Space U8 an ideal commercial hub for professional firms, restaurants, alfresco cafes, banks and retailers.

"At an average of RM330psf, it's quite a deal for Space U8's commercial units in hotspot such as Bukit Jelutong. Our vision for Space U8 is to make it the shopping haven and preferred corporate address in Shah Alam.

"In addtion to the ready population of over 500,000 people here, we also hope to attract residents from the surrounding areas such as Ara Damnsara, Subang Jaya and Klang."

The company also intend s to make Sapce U8 a " must do" for tourists.

"Just a short drive from the Kuala Lumpur International Airport and Port Klang, Space U8 is primed to be a tourst destination ... we will work with Tourism Ministry and Shah Alam Council on this," he said.

The development will be financed by Bank Kerjasama Rakyat Malaysia Bhd.

"Some people were sceptical when we proposed the idea for Space U8 which is our first property venture ... the commitment given by the bank is an important part of our plan to establish credibility for Mainstay Development," Raja Azmi added. "So far, 50 per cent of the 58 units had been booked."

Space U8 is accessible by several highways such as the North Klang Valley Expressway, Guthrie Corridor Expressway and North-South Expressway Central Link.

For more information call 603-7987 3800

By New Straits Times (by Zuhaila Sedek) (Article on 8th June)

Tuesday, June 10, 2008

AP Land to launch RM400m eco-friendly project

PROPERTY developer Asia Pacific Land Bhd (AP Land) will launch its first prestigious ecology-friendly development in Penang, also the first for the island, by the third quarter of 2009.

The RM400 million project, dubbed "Island Bay Resort", will comprise 172 units of low density resort bungalows, villas and boutique apartments, built on a 16.2ha (40-acre) freehold site at Batu Ferringhi beach.

AP Land executive director of architectural services, Wee Beng Sang, is confident that the units will be fully taken up in six to nine months from its date of launch.

The bungalows and villas, which make up 70 per cent of the project, will be priced between US$1 million and US$1.5 million ((RM3.26 million and RM4.89 million) each. The apartments with resort- style setting, will be priced from RM500,000.

"We are targeting foreign buyers. The selling point is the elevated ground, undulating terraces, matured trees and view of the Andaman Sea," Wee said at a media briefing in Kuala Lumpur yesterday.

Island Bay, which will be completed by 2012, is aimed at high net worth individuals. It will include a clubhouse and a view platform, while AP Land will incorporate a green concept in preserving the environment for sustainability.

"There is a growing number of millionaires in the world who are looking at setting up homes in foreign countries.

"Penang has a lot to offer in terms of natural resources, but it does not have a prestigious development to attract high net worth people.

"We firmly believe that Island Bay would be a much sought-after development with its environmentally-friendly approach. Our project will set a new benchmark and put Penang on the map," added Wee.

AP Land, which acquired the land in the early 1980s, will use its own money for the initial stage of development and the rest would be self-funded.

This is AP Land's last parcel of land in Penang.

By New Straits Times (by Sharen Kaur)

IOI Properties confident Sentosa Cove condos can sell

KUALA LUMPUR: IOI Properties Bhd is confident that its biggest high-end development in Singapore’s Sentosa Cove will be a success despite soaring crude oil prices and a softening property market in the republic.

Executive director Datuk Lee Yeow Chor said the group had foreseen the market softening and construction costs rising when subsidiary IOI Properties (S) Pte Ltd and joint-venture partner Ho Bee Investment Ltd successfully tendered for a 5.3-acre 99-year leasehold land called Pinnacle Collection in Sentosa Cove in January for S$1.09bil (RM2.5bil).

The price is about 13.9% more than the reserved price of S$963mil.

“When we tendered for the land last December, the residential market in Singapore was consolidating. It’s good to have a correction as the market went up too fast, by 31%, last year,” Lee told StarBiz after shareholders approved the deal at an EGM yesterday.

Lee said what was more important was the land’s potential as it was the last piece of condominium land parcel in Sentosa Cove.

He said Sentosa Cove had three major attributes – a famous name; a seafront property that would attract many international high-net worth investors; and its location near the integrated resort-cum-casino development where the Genting group would be investing S$5.3bil.

“We believe the integrated resort will give Sentosa Cove a big boost when it (resort) is completed end-2009. We have timed our development (Pinnacle Collection) with the completion of the resort so that people can see the full potential of the place,” he added.

Lee said the group planned to build condominiums, priced about S$3,000 per sq ft.

Pinnacle Collection, to be launched next year, will have seven 18-storey blocks and a 20-storey luxurious condominium. It will have 280 apartments and penthouses of various layout and sizes.

“The average size (per unit) would be 2,500-3,200 sq ft. There will be private lift lobbies. It will cater to the international market,” Lee said, adding that besides Singapore, it would target investors from Indonesia, China, the Middle East and India.

It will have a total development cost of S$1.6bil and estimated gross development profits (before interest costs) of S$500mil.

To be completed in early 2012, it will be funded from sales proceeds, borrowings by joint-venture company Pinnacle (Sentosa) Ltd (IOI Properties and Ho Bee will have 65:35 ownership) and advances from shareholders. Sales will commence in mid-2009.

The Pinnacle Collection is one of two condominium parcels that flank the entrance of the marina leading to Sentosa Cove.

It is adjacent to the 3.6-acre leasehold Seaview Collection, which was successfully tendered by another IOI Properties subsidiary with Ho Bee in March 2007. Seaview Collection, a luxury condominium project comprising two eight-storey apartment blocks with 151 units, will be launched in the third quarter.

By The Star - StarBiz - (by S.C.Cheah)

Mah Sing’s Southgate project block 80% sold

KUALA LUMPUR: MAH Sing Group Bhd has received good response to its Southgate Commercial Centre project in Kuala Lumpur, with 80% of the Vivo block taken up.

“To cater to the strong demand, the group will open the Vox block for sale during the three-day launch (June 13 to 15) at Wisma Mah Sing,” the group said in a statement.

Vox comprises 90 standard and duplex office suites as well as 16 lifestyle retail lots.

Group managing director Datuk Seri Leong Hoy Kum said: “With Kuala Lumpur City Centre less than 10 minutes away, there is robust demand for well-planned niche commercial developments that provide a good business climate.

“We are targeting corporate as well as high net worth customers, including professionals, investors and entrepreneurs as Southgate is suitable for different business ventures.”

The statement said the group was poised for another profitable year, with 14 projects in prime locations – nine in the Klang Valley, four in Johor Baru (Iskandar Malaysia) and one in Penang.

By The Star

SP Setia bullish about Setia Eco Gardens project

JOHOR BARU: SP Setia Bhd sees a good take-up rate for its Setia Eco Gardens mixed property development project launched in February.

Executive director Chang Khim Wah said that to date, some 50% of the 500 single- and double-storey terrace houses had been taken up.

“The response is considered positive in view of the current market situation where consumers are becoming more cautious in their spending,” he told StarBiz yesterday at the tree planting ceremony at the Setia Eco Gardens site in conjunction with World Environment Day 2008 last Thursday.

Chang said the scheme on 383.64ha, which would take eight years to complete, comprised 10,000 to 20,000 mixed properties with a gross development value of RM2bil.

The project is the first nature-inspired township in Johor and the company’s second eco-friendly project after the Setia Eco Park in Shah Alam.

Chang said this was the best time to buy properties as prices would definitely go up in the second half and would continue into next year due to the surge in prices of raw materials and fuel.

“Generally, house buyers can expect the prices of new houses to increase at least by 20%, depending on the economic situation,” he said.

Chang said Setia Eco Gardens also had attracted Singapore buyers, especially businessmen in the Jurong and Tuas areas as it was easily accessible from Singapore via the Second Link crossing.

He said the project's location, about 5km from the Johor State New Administrative Centre in Nusajaya, was another attraction to buyers.

Chang said the company would be launching the semi-detached houses at Setia Eco Gardens towards the end of the year, targeting high-end buyers.

“Demand for high-end properties in Iskandar Malaysia is on the rise, especially with the influx of local and foreign investors to South Johor,” he added.

By The Star - StarBiz - (by Zazali Musa)

Malaysian real estate 'still attractive': Consultancy

MALAYSIAN property remains attractive to foreign investors due to its "freehold" status, said global property consultancy DTZ.

"You can't find such properties in Hong Kong and China. Not only do institutional investors find this an attractive deal, it is relatively cheap as well," said DTZ North Asia chairman David C Watt in a recent interview.

Fuelled by good rental growth projections, Watt said the only drawback was that the market was relatively small compared with Japan, China and India.

"The only problem is that it's quite small. If someone has a big allocation for Asia, will they choose to learn about Malaysia because they can spend it easier in the other markets," he asked.

Brian Koh, executive director of investment for DTZ Nawawi Tie Leung Property Consultants Sdn Bhd, said he expects the local property market to remain robust for the next 12 to 18 months.

"The underlying fundamentals of the commercial market is still very strong while buyers' demand for high-end residential remains," he said.

By New Straits Times

DTZ: Opportunities aplenty in China

CHINA's real estate market holds ample opportunity for property developers and individual investors looking to diversify their investment portfolio, said global property consultancy DTZ.

"In China, the retail market is one of the fastest growing markets and has seen successful foreign retailers such as the Parkson group enter the market," said DTZ's mainland China chief executive officer Edward K.C. Cheung in an interview with Business Times.


Cheung: Chinese developers are not as experienced in developing resorts like those found in Malaysia

Malaysian developers can also look at growing the hospitality and entertainment market in China.

"The Chinese developers are not as experienced in developing resorts like those found in Malaysia. We are looking at resort destinations such as Langkawi to be brought to Hainan," he added.

Cheung said there was also room for the development of entertainment facilities such as theme parks in China.

Recently, Malaysia's Lion Group founder Tan Sri William Cheng tied up with business partners to invest 17 billion yuan (RM7.74 billion) in a film studio and theme park in China's Yunnan province.

Brian Koh, executive director of investment for DTZ Nawawi Tie Leung Property Consultants Sdn Bhd, said local developers can derive as much as 30 per cent of their revenue from offshore projects.

DTZ, which operates across Europe, the Middle East, Africa, Asia Pacific and the Americas, will focus on growing its Chinese business.

It aims to double its number of offices to 30 within 10 years, said DTZ's North Asia chairman David C Watt.

Aside from China, Watt said, the consultancy will concentrate on growing its business in India for the next five years.

"No doubt that these two markets will be the top four markets of the world in terms of pure economic size," he said.

The firm, which is involved in leasing, property management, valuation and investment, said it will enter new markets such as South Korea and Vietnam.

DTZ, which provides consultancy for residential, office, retail, hotel and industrial segments, doubles its revenue every five years.

"Our revenue (derived from consultancy fees) globally is just over US$1 billion (RM3.26 billion) annually," said Watt.

By New Straits Times (by Jeeva Arulampalam)

Second Penang bridge on track, cost may rise

UEM BUILDERS Bhd, a contractor for the second Penang bridge, said the project is on track for completion in 2011 and that the government has agreed in principle on a price increase as the cost of raw materials surges.

"The project value is at RM4.3 billion now. There will be a mechanism to take into consideration price rise and a formula will be worked out," managing director Datuk Ridza Abdoh Salleh said after a shareholder meeting in Kuala Lumpur yesterday.

In general, he said, contractors should be allowed to raise project costs as the recent sharp jump in building material prices was far beyond any contractor's projection.

While the government said that it may stop certain mega projects in favour of more people-centric programmes, Ridza is positive that the project to build a second link from the mainland to Penang island will continue.

"If you read further on the Second Finance Minister's statement, he said that the Penang bridge may not be affected. We'd like to look at this positively," Ridza said.

He said the company has committed over RM200 million on the project and have spent RM50 million so far.

"As far as we are concerned, the preliminary work is going on. Some 70 per cent to 80 per cent of the land has been cleared and we have also done the advanced soil investigation," he said.

UEM Builders' current order book stands at RM4.8 billion, 35 per cent of which is from overseas. Chairman Datuk Abdul Rahim Abu Bakar said it is aiming for a balanced earnings mix to cut reliance on domestic projects.

He said the company hopes to increase its activities in India and the Middle East while it pursues new construction and infrastructure projects in Singapore, Indonesia and Papua New Guinea.

By New Straits Times (by Chong Pooi Koon)

Malaysia may scrap APs for more steel products

The government said it will consider removing the approved permits (APs) for other steel products used in the construction industry, says International Trade and Industry Minister Tan Sri Muhyiddin Yassin.

"We are now issuing liberally import permits for steel and cement. We also want to shorten the period (for issuance of APs) from one week to two to three days," he told reporters after chairing the Malaysian Services Council meeting in Kuala Lumpur yesterday.

The government has scrapped the ceiling price for cement, while that of the steel bar and billet market has been liberalised.

Earlier, the meeting also discussed the shortage of human resource in the services sector and a comprehensive study will be undertaken.

"We need qualified technically trained manpower in five areas - in business and professional services, health services, tourism, education services and distributive trade services," said Muhyiddin.

By New Straits Times (by Rupa Damodaran)

Monday, June 9, 2008

Rental return for NAZA TTDI project


SM Faliq SM Nasimuddin with a model of Laman Seri Business Park.

NAZA TTDI Sdn Bhd (formerly TTDI Development Sdn Bhd) is offering a two-year guaranteed rental return (GRR) of 7.5% per annum for its Laman Seri Business Park, billed as the “best” commercial development in Shah Alam.

The offer, rarely given unless the developer is financially sound and confident of its development, will be effective two months after the date of collection of keys by the purchasers. The two-month period is the normal rental-free renovation period given to tenants.

Senior manager (marketing & sales administration) SM Faliq SM Nasimuddin told StarBiz that the company was the only one in the area offering a GRR scheme for its commercial development.

“The GRR reflects our confidence in being able to attract the right kind of tenants to our development. There will be no problem of us honouring the 7.5% because of our track record of over 35 years in the property business during which we have always delivered on our commitments,” he said.

He added that purchasers could be confident with the GRR scheme as the project was strategically located near many established housing estates with a captive population of over 400,000.

“This project follows the success of TTDI Plaza, which has today become a vibrant business centre attracting various lifestyle businesses, food & beverage outlets, showrooms for various products (such as luxury cars and home furnishings), pharmacy, clinics, fitness centres and service centres. In fact, TTDI Plaza has seen its capital value appreciate by more than 35% since completion,” he said.

Prominent landmarks near Laman Seri Business Park include Sultan Abdul Aziz Shah Golf Club, D' Kayangan, Bukit Jelutong, Glenmarie Resort, and TTDI Jaya. There are also six golf courses and several colleges as well as a Giant hypermarket in the vicinity.

The 8.24-acre Laman Seri Business Park being developed by TTDI Harta Sdn Bhd (a subsidiary of NAZA TTDI) is located opposite the company's newly completed Laman Seri, an exclusive gated and guarded residential enclave.

TTDI Harta won the Cityscape Asia Real Estate Awards 2008 for Laman Seri Business Park under the Future Commercial Development category recently.

The Management and Science University with a large student population is located adjacent to the project. The project is about 35% completed and is on schedule for completion by July 2009.

Faliq said 40% of the 46 units of four and five-storey shop offices had been sold since the project's soft launch about two months ago.

Priced from about RM273 per sq ft (after bumiputra discount), the units will feature a modern contemporary facade, dual 26ft frontage, high ceiling heights of 14ft for ground floors and 11.5ft for upper floors, handicapped-friendly design layout, wide pedestrian thoroughfare, and shared lift for every two units except for premium 39ft wide corner units which will have their own lift.

There will be 928 parking bays at basement and surface levels.

“A special feature is the 37,000 sq ft central events piazza that will serve as an ideal meeting point. It is based on an American concept where office workers can relax and have their meals alfresco amid lush landscapes and water features,” said Faliq, adding that the green space would create a sense of spaciousness.

The piazza will have water features and synchronised water fountains with fibre-optic lighting.

He said most of the purchasers were professionals as well as companies looking to set up their corporate offices at Laman Seri Business Park. “We have upgraded the finishes including using granite and natural stones,” he said.

NAZA TTDI is a member of the NAZA group. Its flagship project is currently the RM3.5bil Platinum Park in the Kuala Lumpur City Centre area.

By The Star - StarBiz - (by S.C.Cheah)

Magna Prima plans RM1b REIT

PROPERTY developer Magna Prima Bhd plans to set up a RM1 billion real estate investment trust (REIT) within the next five years.

The first asset to be sold to the REIT would be a retail mall, which will be built within the company's integrated lifestyle property development, Magna City Kuala Lumpur.

Chief executive officer Lim Ching Choy said the company plans to sell at least three assets to the REIT.



"The retail mall in Magna City will be the first asset that we are going to maintain for retained income and eventually, we will inject this asset into (the) REIT.

"We are building a few more, so our REIT asset will exceed RM1 billion," he told Business Times in an interview in Kota Damansara, Selangor.

Developers typically sell their assets to a property trust to raise funds that would be used to cut debt. In most cases, REITs are also owned by developers who want to maintain control over their assets.

Lim also said that the company may raise funds from a bond sale to finance the retail mall component of Magna City.

"We want to issue bonds to match our rental income, so that the long-term asset is funded by long-term corporate debt," he said.

Magna Prima expects revenue to increase to RM1.6 billion within four years, mainly from the Magna City project. It made RM26.6 million net profit on revenue of RM344.4 million in the year to December 31 2007.

Currently, 74 per cent of the company's income comes from property development and the rest is from construction.

It expects equal contributions from the two divisions within the next three years.

Magna Prima's construction arm is currently doing in-house jobs with a total contract value of RM647 million.

Magna Prima has also bought 90 per cent of a construction firm, Pembinaan Contamaju-Infocast Sdn Bhd (PCI) to beef up its construction arm.

Its wholly-owned subsidiary, Magna Prima Construction Sdn Bhd, is involved in the construction of Dataran Otomobil, Magna View and Metro Prima Kepong, while PCI will do new projects such as U1 in Shah Alam and Magna City.

Currently, Magna Prima has a total landbank of 32.8ha, small compared with large parcels owned by other developers.

"We have RM2.13 billion gross development value (GDV) on the 32.8ha land, which will sustain us in the next four years.

"We are focusing on high-density development, so our GDV value per acre is very high compared with other developers," he said.

Magna Prima has identified two parcels of land for next development projects - one is less than 0.8ha located within the Golden Triangle area in the city and another is more than 4ha land in the highly densed suburb in Klang Valley.

"We are at the land negotiation stage, and we expect to conclude it within two months' time," he said.

The GDV of each project is estimated to be more than RM1 billion.

Lim said the company plans to focus its property development activities in Klang Valley and has no immediate plans to venture abroad.

By New Straits Times (by Hamisah Hamid)

Parkroyal KL set for revenue boost

PARKROYAL Kuala Lumpur expects revenue to rise 10 per cent this year to about RM50 million as it adds a club floor and 78 rooms.

The five-star hotel wants to have a bigger share of the meetings business and the move will help fill rooms, garner better average room rate (ARR) and generate more income from food and beverage sales.

In the financial year to December 31 2007, the Singapore-owned and operated hotel chalked up RM45 million revenue, some 61 per cent of which came from its rooms and the rest from its food division.

"We expect revenue to in-crease between RM4.5 million and RM5 million, a good proportion coming from the additional room inventory," its recently appointed general manager Ian McKie told Business Times in an interview.


"We expect to close the year at 70 percent average occupancy and an ARR of RM285" Ian McKie General manager Parkroyal Kuala Lumpur

He added that the hotel's gross operating profit (GOP) is set to improve to RM17.5 million this year from RM13.5 million last year.

Last year, the hotel achieved an ARR of RM245 and an average occupancy of 78 per cent.

This year, the ARR is expected to improve although the average occupancy may fall slightly given the extra rooms. It now has 426 rooms.

"This year, having gone through the first four months, we expect to close the year at 70 per cent average occupancy and an ARR of RM285," McKie said.

The hotel is owned and managed by Parkroyal Hotels & Resorts Pte Ltd, a subsidiary of the Singapore-listed Hotel Plaza Ltd.

While the Parkroyal brand has been in Malaysia since 1989, Hotel Plaza came into the picture only in 2002 after the acquisition of the brand and hotel.

Late last year, Parkroyal Kuala Lumpur completed a RM16 million renovation to add the club floor and convert some of the office units into hotel rooms in the adjoining commercial building, President House.

By New Straits Times (by Vasantha Ganesan)

2nd Penang bridge to cost RM4.3b


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)

Amaya Suajana appeals to foreigners

Generous green space and layouts at Malton's latest high-end condo are two draws luring expats



"I like the area - it is well located and offers easy access to major localities in and around the Klang Valley," said Matsi Yamagato (not his real name) about his decision to purchase a unit at Amaya Saujana, the latest upmarket condominium taking shape in Subang's Saujana Resort locale.

"I also like the fact that the Kuala Lumpur Japanese School is next door, which is great for my children ... and that the Saujana Golf and Country Club is just across the road, which is fine with me!"

Other landmarks Yamagato is close to by opting to take up residence in Amaya Saujana include the Peremba Square Office complex, the up-and-coming Ara Damansara Township and the future Malaysia International Aerospace Centre, to be built on the former site of the Subang Airport.

"This area is rapidly evolving into an upmarket residential and commercial precinct - you don't have to be astute to recognize the potential for property values to appreciate," said Yamagato.



His enthusiasm for the project, along with that of 20 other foreign buyers, lends credence to the forecast by developer Malton Bhd that Amaya Saujana will attract the interest of expatriates.

From an investment "buy-to-let" point of view, it looks promising too, going by the prevailing rental yields in neighbouring developments.

According to Malton's sales and marketing director Tracy Lai, units in Saujana Resort can fetch monthly rents of between RM4,000 and RM5,000, and generate yields of up to eight per cent.

The RM276.1 million Amaya Saujana, being developed by Malton subsidiary Khuan Choo Development Sdn Bhd, is taking shape on 6.02 acres of freehold land fashioned to be low in density and green.

"One of its big draws is the high green space ratio surrounding the project, which appeals to foreign and local homeseekers alike," said Lai.

The three towers of 13-storeys that make up the project will accommodate 378 residential suites designed to appeal to those with a penchant for space.

The three-plus-one and four-plus-one bedroom units will be styled with semi-detached and bungalow layouts in sizes ranging from 1,569sq ft to 1,895sq ft.

Priced between RM605,000 and RM918,000, Lai said buyers can also expect units to be broadband ready and fitted with quality finishings such as porcelain tiles and laminated timber flooring, decorated plaster ceilings, eight-feet high timber doors and ensuite bathrooms in every room. All condos will also come with three air-conditioners.

Amaya Saujana will also offer lifestyle facilities and amenities, such as a cafe, garden pavilion, sauna, pools, tennis and basketball courts, gym, exercise stations and a playground.



Said an expat buyer: "What appeals to me about Amaya Saujana is that i get to feel as if I'm living in a landed home, enjoy a resort like lifestyle, but at the same time feel safe because of the security that condos provide."

The project will be equipped with a four-tier security system involving guarded perimeters, CCTV monitoring and card access at the car-park and lobby levels. Access will be limited to individual units levels and the facilities deck.

"For convenience, every unit will have a direct intercom link to the guardhouse to facilitate visitors," Lai said.

Considering that the project was only launched late last year, she said response has been "extremely positive".

"We've sold over 90 per cent of our first phase launched in November 2007, and over 50 percent of our second phase, which was only unveiled last month."

Lai added that Amaya Saujana's early buyers have already benefited from an almost 20 percent increase in prices.

"But there's still room to gain for those who buy now, as the area is continuing to blossom."

With construction currently underway, the project is due for completion by 2010.

By New Straits Times (by Chris Prasad) (Article on 1 June 08)

More detail information, please visit website: http://www.malton.com.my or Call direct : 603-2797 1888

Saturday, June 7, 2008

Waterfront view


The house wraps around an island of palms in front with a view of the swimming pool, pond and golf course at the back.

The soft morning dew came, blanketing the wide expanse of golf course, lake and pool. At the edge of the lake, buffered by a swimming pool, stands a double-storey bungalow. With an area of 18,000 sq ft, it is one of the largest plots in Tropicana Golf & Country Resort, Petaling Jaya. Most of the bungalow lots there are about half the size.

By virtue of its lakeside location, and encircled by the golf course, it has one of the best panoramic views. It is along this premise that the house is designed ­– to take full advantage of its picturesque vicinity.

This is more than a waterfront home. It is a sanctuary not for one family but two or more. Artfully designed, with technology and aesthetics to match, the owner has shaped and formed it according to his needs, fancy and imagination. With a built-up of 11,000 sq ft, it is fluidly designed to be a haven for a large and extended family.

“My parents come to stay often, at stretches of several months in a year. Their unit, although adjoining ours, has its own entrance and car porch, although it is accessible from this side as well. The three rooms on that side are separated from the rooms on this side, so there is privacy all around,” says the owner.

What looks like one grand house is in fact two, each with its own kitchen, verandah, rooms, entrance and living area. The second unit is separate from the main family home but is easily accessible as both are designed as a single entity.

With concepts and designs that come with form and functionality, the owner has masterfully designed the house to offer views from every part of the home.


A cluster of palms and a fish pond face the entrance.

The two-storey building curves around a clump of palms and fish pond in the front and spreads out like an Oriental fan, with the verandah at the outer fringes overlooking the waterfront and golf course.

While the main family occupies one portion of the home, the owner’s parents occupy the adjoining unit. There is ample space for parking for both families at both ends of the fan-like structure.

As one enters the front gates, the sound of children’s laughter is evident. The children have their playroom at one end and one has to pass by this to get to the front door. “When I leave or come home, I get to say my goodbyes and hellos,” says the owner.

The children’s playroom is unique. It is large enough to fit a bed with ample area for play. The room opens out to the maid’s room on one side and a work area and kitchenette cum utility area on the other. The children also have their room upstairs, adjoining the master bedroom.


A large and welcoming foyer which leads to different parts of the house.

“The children spend most of the day here and I wanted them to be comfortable as far as possible. The objective is to have an area where the helpers can mind the children and yet continue with their routine chores. If they need to rest, they may do so as their room looks out into the children’s play area. Because of the orientation of the house, they are able to keep an eye on the front entrance as well,” he says. The front door is located at the centre of the structure, after passing the children’s play room. The foyer is large and welcoming with its different arches leading to different areas of the house.

The focal point of the living area is obviously the breathtaking view of the swimming pool, lake and golf course. One is automatically drawn to the verandah, which fans out to offer a panoramic view of the surroundings.

He says: “There are multiple seating and entertaining areas, most of them with a view of the outdoors. I have set the house in a certain way to maximise the view and have also built a home office as most people work from home today. The view from the home office is also inspiring. This house is quite high-tech. You can see it from anywhere in the world.”

Because he believes the kitchen is the heart of the house, he has furnished the dry kitchen practically with space for paperwork to be done besides the normal utility area.

“The children can watch TV here. I have done it this way because people generally spend 30% of their time in the kitchen. And you also get a wonderful view of the outdoors from here too. This may well be the kitchen with the best view in this development.”

Because he travels widely, the owner has decorated the place beautifully with collectibles he has sourced from all over; mother-of-pearl lamps for the Shanghai 1920s room, knick-knacks from Africa for the Safari room, and a Cuba-inspired poster and doors and stone figurines from Bali.

He admits that many of them are whimsical but they complete the place. Other than several pieces from faraway places, most of them are from Bali, Thailand, China and other parts of Asia.

“This is not a Balinese house. If I wanted that, I would have gone to live in Bali,” he says.

He has taken great pains with everything from building, fitting out and decoration. It is, after all, for the family to enjoy. It is a sanctuary for the people living here and a treat for guests.

Salient points

Double-storey leasehold bungalow with pool, selling lock, stock and barrel RM9.4mil (Bill Thompson, 012-205-1259)

Land area: 18,000 sq ft

Built-up : 11,000 sq ft

Seven bedroom ensuite, 1 powder room

Outstanding features: One of the largest pieces of land offering the best view of lake and landscapes. Masterfully designed to fit several generations.

By The Star (by Thean Lee Cheng)

Signature takes on rival European makers

KITCHEN and wardrobe systems designer and retailer Signature International Bhd (SIB) is certainly an example of a homegrown brand that thinks big.

For a brand of humble beginnings, the specialist in the design, manufacture and retailing of kitchen and wardrobe systems can today hold its own in a market dominated by European names.

Its products, under the brand names Signature Kitchen and Signature Wardrobe, are not only perceived as high-end brands, but have also made their presence felt in more than 10 countries.

The company, which started in 1994 at the lower end of the market, today boasts stylish, high-end kitchens and wardrobes with a distinctly European feel.

And these it proudly and prominently displays at its 23 showrooms nationwide and 15 overseas.

Managing director and co-founder K.C. Tan said having the “European look” was part of the company’s strategy to develop the brand and grow the business.


"We want to be recognised as an international brand and where there is market that has growth potential, we look at it" - K.C. TAN

“We don’t tell customers that we’re selling a commodity. We tell them we’re selling them their dream kitchen,” he told StarBiz.

“When we think of kitchens, we are reminded of kitchens in the old days – a place that is full of dirty, oily pots and pans, and cockroaches running everywhere.''

Tan said the standard European kitchen is a picture of contrast.

“The European kitchen looks stylish and elegant. Just think Jamie Oliver and how stylish he looks when he cooks! That is the image and appeal we want to portray to our customers. It’s part of our strategy to push our brand,” he said.

Tan said the company might even consider a co-branding venture with a foreign company as part of its vision to enhance the brand further.

“We want to be recognised as an international brand and where there is market that has growth potential, we will look at it,” he said.

The ambition to become a world brand was already in place when the company went public early this year.

“When we chose to be listed, we decided on the name ‘Signature International Bhd’ to signify that we did not just want to be a local brand. “We want to be a global player,” Tan added.

SIB is the first kitchen and wardrobe company to be listed on Bursa Malaysia.

To maintain its edge, the company takes part in international exhibitions to keep up with the latest styles and trends and to get new ideas.

It uses imported oak, ash, beech or maple rather than the rubber wood most local manufacturers use to give that European finish.

“We also work closely with European manufacturers so that when there are new products over there, we would be one of the first to incorporate them into our products,” Tan said.

He attributed the strong European influence in SIB’s systems to the domination of European players in the kitchen industry in the Asia Pacific region.

This was evident when SIB set up its first showroom overseas in Bangkok in 2004.

“Local kitchen manufacturers within the region are quite far behind in terms of technology and product design. Local players tend to be small operators or small-scale carpenters and are no match for the high-end Europeans,” Tan said.

He added that because SIB’s products were targeted at the high-end market, it was competing with European rather than local brands.

Tan said the Signature brand was on par with the European makes in terms of quality but was way ahead on pricing.

“Some of our competitors’ products can be up to 10 times more expensive than ours despite the similarity in quality,” Tan said.

Today, the Signature brand has become a benchmark for quality, affordably priced kitchen and wardrobe products.

SIB also provides installation services to its customers all over the world, a value-added feature that most international companies could not.

“We also send our people overseas to install our products. This is a huge advantage for us because even if our competitors did the same, it would still be too expensive,” Tan said.

In recognition of the standing of the Signature brand, SIB has won numerous awards, including the Golden Bull Award in 2003, the Enterprise 50 Award in 2006 and the Brandlaureate SMEs Chapter Award in 2007.

Universiti Technologi Malaysia’s Prof Dominic Lau also featured SIB as a Blue Ocean Company in the Malaysian edition of Blue Ocean Strategy.

According to Tan, having a strong brand has everything to do with the company's success and where it is today.

“When you invest in branding, you invest in the future of your business. I firmly believe that business success and brand strategy go hand in hand,” he added.

By The Star (by Eugene Mahalingam)

Steel millers to ask for windfall tax exemption

STEEL millers plan to ask the government not to impose a windfall tax on them despite their good profits of late.

The government slapped the tax on power producers and oil palm planters recently, and steel millers fear that they may be next.

The Malaysian Iron & Steel Industry Federation (Misif) plans to make its appeal next week.

"Our association will submit a memorandum to the Domestic Trade and Consumer Affairs Minister Datuk Shahrir (Samad) next week," Malaysia Steel Works (KL) Bhd (Masteel) managing director Tai Hean Leng said.

A windfall tax is usually imposed on industries that make supernormal returns and are insulated from inflation.

Shahrir had said that steel millers might face a windfall tax if steel bars sold in the country continued to be more expensive than in neighbouring countries, such as Singapore.

Master Builders Association of Malaysia (MBAM), which represents some 600,000 contractors, said that despite the liberalisation of the steel bar and billet market from May 12, steel bars sold in the country remained more expensive than in Singapore.

MBAM president Patrick Wong said steel bars in Malaysia sell for around RM4,000 a tonne, but are priced at RM3,679 a tonne in Singapore.

Tai, however, said the steel millers have not been spared from inflation.

"Malaysia does not have iron ore deposits of any viable commercial quality. We have to import the steel scraps and iron ore, and we have to manage the rising costs of these raw materials," said Tai, who is also a Misif council member.

Steel millers also have to contend with rising costs of electricity, coal and natural gas, he added.

By New Straits Times (by Ooi Tee Ching)

IJM wins India road deal worth RM500m

IJM Corporation Bhd, through its special purpose vehicle Vijayawada Tollway Pvt Ltd, has embarked on a major highway project worth nearly RM500 million in the Indian state of Andhra Pradesh.

Vijayawada Tollway and the National Highway Authorities of India (NHAI) yesterday signed a concession agreement to build a six-lane 82.5km stretch along the Chilkaluripet-Vijayawada Section of the NH-5 in Andhra Pradesh.

The concession is for 15 years, including construction period of two-and-half years, and work is expected to begin this December.

"We have been given two-and-half years to finish the project and we are confident of completing the project within the timeframe. IJM has successfully completed almost 1,000km of road project in India," said IJM country director (India) Ng Chin Meng.

The project, under NHAI phase five, was awarded on a design-build-finance-operate (DBFO) basis, the first of its kind to be awarded by NHAI.

The project has adequate provision for bridges, flyovers, vehicular under-passess, pedestrians under-passes and automatic traffic counter.

There will be 152.5km long service road on both sides throughout the project.

The project is part of the Indian government's ambitious plans to upgrade its existing national highways to transport people and goods efficiently across the mammoth country.

IJM and India's Infrastructure Development Finance Company are the other consortium partners in the project.

By Bernama

Friday, June 6, 2008

SP Setia employees band together for the environment


ONE hundred houses at SP Setia Ecopark have been installed with solar panels as part of a study to determine the feasibility of such energy sources.

SP Setia group managing director and chief executive officer Tan Sri Liew Kee Sin said the company had received a RM1mil grant from the government last year for the purpose.


In the lead: Liew (second from right) leading the 5km walk at SP Setia, Shah Alam.

“We have installed the system which comes with two meters to show the level of energy generated and the energy consumed.

“This is still experimental and we expect to put the system to use at the end of the year when the houses are completed,” he said.

Liew added that the move was part of the government’s environmental efforts.

Liew was speaking at a press conference after the company’s World Environment Day celebrations held at SP Setia, Shah Alam yesterday.

Themed CO2 Kick the Habit! Towards a Low Carbon Economy, the event saw staff from Johor, the Klang Valley, Penang and Ho Chi Minh City taking part in a 5km walk to raise public awareness on reducing carbon emissions and greenhouse gasses.

They later took a pledge to show respect and care for the environment and to contribute towards the development of a sustainable planet earth.

Liew also led his employees in planting 2,000 trees, which is estimated to remove 1,600 tonnes of carbon dioxide from the atmosphere.

Each employee was also given free plants to take home to green their surroundings.

He said the company had been incorporating ecology in its projects, which covered everything from the landscape to the layout of the development.

“Developers can play a crucial role to interact responsibly with the environment by building sustainable communities which balance economic growth and environmental protection,” Liew said.

The company had also shut down operations of all heavy machinery at all project sites for the day, to reduce air and dust pollution.

“This cost us RM1mil but we believe no cost is too great when it comes to helping to save the environment,” he said.

By The Star (by Salina Khalid)

Mudajaya gets RM958m expressway contract

KUALA LUMPUR: Mudajaya Corporation Bhd has secured a RM958 million contract from Bina Puri Holdings Bhd associate KL-Kuala Selangor Expressway Bhd (KLSE) for the construction of the expressway following a competitive tender.

In a statement yesterday, Bina Puri said KLSE had awarded the proposed design-and-build contract for the expressway comprising package 1 (Assam Jawa to Kundang) and package 2 (Kundang to Taman Rimba Templer) to Mudajaya’s subsidiary Mudajaya Corporation Bhd.

Bina Puri, with its partner Arena Irama Sdn Bhd, is targeting to start the construction works by the third quarter of the year. Bina Puri has a 50% stake in the project, which is expected to be completed within 30 months.

The contract was signed here yesterday, with Bina Puri and Arena Irama represented by the group managing director Tan Sri Tee Hock Seng and director Mohamed Raffe Chekku, respectively, and Mudajaya by its managing director Ng Ying Loong and director Anto Joseph.

Bina Puri said the 33km dual carriageway would provide an alternative link road to the present Federal Road 54 from Kuala Lumpur to Kuala Selangor.

It forms part of the government’s planned KL Outer Ring Road (KLORR) which starts from North of Templer Park to Assam Jawa in Kuala Selangor. It will enable the users to shorten travelling time from two hours to 45 minutes from Kuala Lumpur to Kuala Selangor.

Bina Puri said the project was expected to create a stable recurring income for the group. “Bina Puri, being a reputable civil contractor, has its own quarry and ready-mix division and could also participate in the construction of the expressway if its price was competitive and acceptable to Mudajaya,” it said.

The company said that in 2007 it had managed to increase its order book to RM2 billion from RM1.6 billion in 2006.

By The EDGE Malaysia

Mudajaya bags 2 packages of Bina Puri road deal

BINA Puri Holdings Bhd through its associate KL-Kuala Selangor Expressway Bhd (KLSE) has awarded two packages of the expressway project to Mudajaya Group Bhd, valued at RM958 million.

Package 1 of the proposed design-and-build contract is from Assam Jawa to Kundang, while Package 2 is from Kundang to Taman Rimba Templer, Bina Puri said in a statement yesterday.

The company said Mudajaya won the contract based on a competitive tender exercise, and is expected to complete it within 30 months.

Bina Puri, with participating interest of 50 per cent together with its partner Arena Irama Sdn Bhd, is aiming to start the project's physical work by the third quarter of 2008.

KLSE will provide an alternative link road to the present Federal Road 54 from Kuala Lumpur to Kuala Selangor. It forms part of the government plan KL Outer Ring Road (KLORR) which starts from north of Templer Park to Assam Jawa in the Kuala Selangor district.

The expressway is a 33km dual carriageway. When completed, the expressway will enable users to cut travelling time from two hours to 45 minutes from Kuala Lumpur to Kuala Selangor.

"With the award of the contract to Mudajaya, a reliable contractor, we believe that the project will be successfully carried out with quality and timely completion," Bina Puri said.

In 2007, Bina Puri increased its order book to RM2 billion from RM1.6 billion in 2006, and expects the value to increase this year as it looks for opportunities locally and abroad.

By New Straits Times

Thursday, June 5, 2008

Wanted: Malaysian partners


REGIONAL BOOST: Artist’s impression of part of the Knowledge Economic City

KNOWLEDGE Economic City Developers Co Ltd (KECD) is in talks with Malaysian companies to rope them in as partners and long-term investors for the US$8 billion (RM26 billion) Knowledge Economic City (KEC) development in Medina, Saudi Arabia.

Its chief executive officer Tahir Mohammed Bawazir said the company has identified several interested parties and hopes to conclude some deals soon.


TAHIR: The Knowledge Economic City is expected to bring about RM9billion a year into the region once it is completed by 2020

"We plan to leverage on the expertise of Malaysian companies from various sectors and hope more will come in as partners and investors," he told Business Times in Kuala Lumpur.

Tahir said that as the project develops, KECD will continue to seek investors, partners and sub-developers as well as establish joint ventures with strategic partners to develop and operate key component areas.

Since its launch in 2006, KECD has signed memorandums of understanding and contracts with several Malaysian companies and the government.

They include Malaysian Multimedia Development Corp, HELP University College, Multimedia University and, the latest, iTopia Sdn Bhd.

Consultancy contracts have been awarded to MSC Technology Centre.

"The project is expected to bring about 10 billion Saudi riyal (RM9 billion) a year into the region once it is completed by 2020," Tahir said.

The KEC is one of four economic cities being developed in Saudi Arabia to boost regional development by focusing on intellectual property, knowledge-based, medical, hospitality, tourism and multimedia industries.

Other economic cities being developed by the Saudi Arabian General Investment Authority are the King Abdullah Economic City, Prince Abdul Aziz ibn Musaed Economic City and the Jizan Economic City.

The five million sq m KEC includes a theme park, educational institutions, integrated hospitality complex (with private medical centre, nursing and medical schools, senior assisted living community), residential, commercial and retail components.

"KEC Medina aims to utilise Saudi Arabia's second competitive advantage after energy - its strategic location as a link between East and West," Tahir said.

The project is expected to create more than 20,000 jobs and accommodation for about 150,000 people.

By New Straits Times (by Azlan Abu Bakar)

TH Properties in design pact with Villa Muhandis

TH PROPERTIES Sdn Bhd yesterday signed a memorandum of understanding (MOU) with Villa Muhandis Internationale Sdn Bhd (VMI) to incorporate Italian designs and influences in future phases of its Bandar Enstek township project.

TH Properties chief executive officer Zaharuddin Saidon said the MOU also covered the promotion and undertaking of research and development in houses and real-estate design at Bandar Enstek and the promotion of information exchange for common business interest and opportunities between the two companies.


"The design business centre will be a platform to help develop and commercialise Malaysian designs for local and international markets." Zaharuddin Saidon Chief Executive Officer TH Properties

"An integral component of the MOU will be the setting up of a design business centre by VMI and the proposed establishment of the Malaysian Italian Design Institute at Bandar Enstek," he told reporters after the signing ceremony in Kuala Lumpur yesterday.

Zaharuddin said the design business centre will be a platform to help develop and commercialise Malaysian designs for local and international markets and also promotes collaborations with other housing research centres, especially universities.

"Initial discussions have already been made with the Housing Research Centre of Universiti Putra Malaysia and Universiti Tun Hussein Onn Malaysia," he said, adding that one of the main areas of research is on the Industrialised Building System which will help enhance quality and safety at construction sites and reduce construction costs.

VMI is involved in the business of industrial design in collaboration with international institutions worldwide.

TH Properties, a wholly-owned subsidiary of Lembaga Tabung Haji, is developing Bandar Enstek, a RM9.2 billion integrated township in Nilai, Negeri Sembilan.

By Bernama

Italian designs for Bandar Enstek

KUALA LUMPUR: TH Properties Sdn Bhd aims to bring Italian designs to future phases of its Bandar Enstek development in Nilai, Negri Sembilan.

“We would like to produce a local brand which is recognised globally,” CEO Zaharuddin Saidon said after the company signed a memorandum of understanding (MoU) with Villa Muhandis Internationale Sdn Bhd yesterday.


Zaharuddin Saidon

Villa Muhandis is involved in industrial design in collaboration with international institutions worldwide.

Zaharuddin said an integral component of the MoU would be the setting up of a Design Business Centre (DEBUCE) by Villa Muhandis and Malaysian Italian Design Institute (MIDI) at Bandar Enstek.

DEBUCE would be a platform to help develop and commercialise Malaysian designs for local and international markets, he said.

“DEBUCE will also be the platform for innovative collaboration with other housing research centres, especially with universities. Initial discussions have started with Housing Research Centre of Universiti Putra Malaysia and Universiti Tun Hussein Onn Malaysia.

“One of the main areas of research is in an industrialised building system which will help in enhancing quality and safety at construction sites as well as reducing construction costs,” he said.

Currently home to a population of about 5000, Bandar Enstek is a RM9.2bil integrated township on 5,116 acres.

According to Villa Muhandis president Giovanni Pergaminelli, Malaysia does not lack talent but there is a need to learn how the European countries are able to harness their talent in art and design for commercialisation.

On the outlook of the property market, Zaharuddin said it would be hit by the increase in petrol prices, which would affect building material prices.

“The cost of building houses will go up; therefore the selling price will also go up.

“What is important is to adjust and address the issue and one of the things we want to do is identify alternative building materials that will reduce costs,” he said.

By The Star

KDEB may bid for Gamuda's Splash stake

KUMPULAN Darul Ehsan Bhd (KDEB), will make an offer by as early as September to buy Gamuda Bhd's stake in Syarikat Pengeluar Air Selangor Sdn Bhd (Splash), people working on the project said yesterday.

"The state will give notice to Gamuda by as early as next month of its intentions to pursue the acquisition as the financial stress test on the valuation of the company has just been completed," a finance executive who worked on the project said.

Gamuda owns 40 per cent of Splash, while the remaining equity is equally held by Tan Sri Wan Azmi Wan Hamzah's The Sweet Water Alliance Sdn Bhd and KDEB.

Gamuda's stake in Splash is valued at between RM700 million and RM1.3 billion, depending on the methodology used. JP Morgan, using the discount cashflow (DCF) method values the stake at RM1.17 billion, while Macquarie Research in a report said based on DCF, the stake is valued at RM1.3 billion.

Splash, with a concession that runs up to December 31 2030, is the largest water producer in the state, producing some 43 per cent of the state's total water supply.

"KDEB is in the process to acquire the water assets. We will elaborate on the specifics in due time, as we hope to have the scheme in place by September," said KDEB's corporate communications general manager Necia Abdullah in a text reply to Business Times.

Gamuda, the country's second largest builder might be willing to cash out, as gains from the sale could be used for other purposes abroad.

The builder is under scrutiny over plans to invest as much as RM1.5 billion in property ventures over the next three years in Vietnam, which has a currency cum financial crisis looming over its head.

"Delays in property sales in Vietnam could also mean that Gamuda would have to rely entirely on borrowings to fund its initial infrastructure outlay," Choong Wai Kee of Citigroup, wrote in a report dated May 29.

Early this year, Gamuda's managing director Datuk Lin Yun Ling had told this paper that the builder was in preliminary exploration for a possible sale of Splash.

By New Straits Times (by Francis Fernandez)

Wednesday, June 4, 2008

Mah Sing’s strong earnings growth

MAH SING Group Berhad remains one of CIMB Research’s top picks in the property sector for its strong earnings growth and astute management.

The research house, which maintained a buy on Mah Sing at RM1.50, however, lowered its FY08 to FY10 earnings forecast by 2% to 9% to reflect the termination of the Puchong land acquisition at end-March.

It has also revised its target price downwards to RM 2.02 from RM 2.27 previously as the property company’s revised net asset value (RNAV) fell by the same amount due to the removal of the Puchong land from estimates.

Commenting on Mah Sing’s financial results, CIMB Research said the group’s first quarter (1Q) net profit of RM22.3 million amounted to 21% of its full-year estimate as well as consensus, which the research house regarded as in line as future quarters are expected to be stronger.

“Furthermore, the group will be able to recognise contribution from the sale of Icon Tun Razak in 2Q, which will be a big boost to their profits,” noted the research house.

Mah Sing’s 1Q sales amounted to RM113 million, which was 6% above the 1QFY07’s sales of RM109 million.

“It is a commendable performance considering that it has included three weeks of the post general election impact. On a geographical basis, Penang made up 42%, the Klang Valley 40% and Johor 18% of total sales,” it added.

In March, Mah Sing launched the RM380 million Southgate commercial project along Jalan Sungai Besi in Kuala Lumpur (which was revised upwards from RM256 million), while in April it launched the RM1.28 billion Southbay Penang project in Batu Maung.

CIMB Research said Mah Sing was also eyeing more landbank and investors can expect it to speed up its land acquisitions in the second half.

“So far this year, it has acquired only a small parcel of land in Johor to replenish landbank in the Sri Pulai area. The group is eyeing more landbank in Malaysia, including the Klang Valley, Johor and Penang. It has also set its sights on the Sabah market.

“More importantly, it is making significant progress on securing landbank in Vietnam,” it said, adding that Mah Sing was pursuing opportunities in Ho Chi Minh City and Hanoi.

CIMB Research said share price catalysts include more value-enhancing landbank acquisitions domestically and overseas as well as conclusion of en bloc commercial sales and potential further en bloc sales.

Mah Sing rose one sen to RM1.51 at the close of yesterday’s trading.

By The EDGE Malaysia

German fund to invest more in Asia

HONG KONG: German fund manager Union Investment Real Estate plans to invest up to four billion euros (US$6.21bil) in Asia over five years, hoping its drive for diversification will also give returns an extra kick.

German open-ended property funds, including those run by Union Investment, have been busy snapping up property abroad since a redemptions crisis forced them to sell many assets in their home market in 2005 and early 2006.

Union Investment opened an office in Singapore in 2006, and is keen to ramp up its investment in Asia from the current 600 million euros, according to its Asia head, Steffen Wolf.

Globally, the company has around 15 billion euros of assets under management.

“Asia is very much top of our priority list,” Wolf said in a telephone interview from Singapore. “We should be looking at between two and four billion euros over, say, five years.”

A pall was cast over Germany’s entire open-ended property funds industry in 2005 when attempts to correct inflated valuations of assets spurred thousands of investors to try to cash in investments before fund units were re-priced.

Deutsche Bank took the unprecedented step of freezing redemptions in its flagship GrundbesitzInvest fund, and funds managed by Germany’s biggest open-ended fund manager DekaBank were also hit.

But Wolf said Union Investment had seen more money flow into its funds in the last year, despite a global credit crunch that has weakened commercial property prices in several markets, including the United States and Britain.

“Investors are quite aware of our risk and return profile, and are shifting from stocks to safer alternatives – savings accounts, government bonds or property,” he said.

Union Investment’s funds, such as Unilmmo Global and Unilmmo Europa, usually give annual total returns of 46%, while its investments in Asia are giving 56%, according to Wolf.

Despite signs that the Tokyo office market is weakening, Japan tops the company’s list of favourite Asian markets, which also includes South Korea, Singapore and Malaysia.

By Reuters

WCT: No impact from Vietnam in two years

SHAH ALAM: WCT Engineering Bhd does not see its Vietnam operations having any impact on the group at least for the next two years, said chairman Datuk Ahmad Sufian.

It had not budgeted any revenue or cost contribution from the project in the next two years, he said after the company AGM yesterday.

“We have not signed to buy land from any third party, which would have been a risk (with the current turmoil),” executive director Loh Siew Choh said.

Instead, the company would be acquiring land through the government for its Platinum Plaza project there, he said.

While it was negatively affected by high fuel prices, “Vietnam is still a predominantly agricultural economy and with rising food prices the farmers are actually benefiting,” he said.

Building works on Platinum Plaza would begin with the shopping centre in 2010.

WCT has a 67% stake in a maiden joint venture to develop 9ha in Binh Chanh District at the new southern area of Ho Chi Minh City.

Analysts estimate the project, which include retail and entertainment outlets, having a gross development value of US$700mil.

Components of the project include a basement car park with three-storey elevated area, a retail and entertainment centre, and two high-end 22-storey office towers. Total gross floor area is estimated to be 671,960 sq m.

However, Loh said WCT would adjust the construction and investment outlay depending on where the demand was seen headed, possibly reducing the number of floors for the shopping centre.

The project was expected to take three years to build and the shopping mall would be completed by 2013 or 2014, he said adding: “At that time hopefully the downcycle would be over.”

WCT's order book stands at RM5.2bil, of which 70% were overseas projects mainly in the Middle East, said Sufian.

The Dubai racecourse and the Formula 1 track in Abu Dhabi were on track while the shopping centre in Bahrain was near completion, he said.

Deputy managing director Goh Chin Liong said WCT was seeking more projects in the Middle East and exploring North Africa.

“We see that North Africa could be a new growth centre and are now exploring the region.” he said.

By The Star

Gamuda shares rebound to close 5 sen higher

PETALING JAYA: Gamuda Bhd shares staged a rebound from last Friday's 18% decline to close 5 sen higher at RM2.50 yesterday after several analysts said the company's exposure to the Vietnam property market was overblown.

The company, through Gamuda Land Sdn Bhd, is developing the RM8bil Yen So Park, comprising a mix of residential and commercial properties on 808 acres in return for constructing a sewage treatment plant and other infrastructure works.

The stock saw 17 “buy” recommendations compared with four “holds” and three “sells”, according to Bloomberg data.

CIMB Research, which has maintained an “outperform” on the stock, said in a report that based on its current worst-case scenario where the RM3.9bil value of the Yen So Park land was stripped out and assuming zero contributions from the double-tracking project to construction profits as well as a lower construction price-to-earnings of eight times instead of 13.5 times, the revised net asset value (RNAV) would drop to RM2.78 based on a higher 30% discount to RNAV instead of 20%.

Analyst Sharizan Rosely said net earnings forecast for the next two financial years would drop by 26% to 30% if Vietnam contributions were removed.

“In view of the cautious economic environment in Vietnam, we're now cutting our revenue forecasts for Yen So,” he said, adding that revenue would be cut for the next two financial years to RM250mil from RM800mil and RM400mil from RM800mil. Gamuda's financial year ends July 31.

Sharizan said this would see earnings forecasts cut by 17% to 20% for the next two financial years.

“Although the conditions of Vietnam's economy are a concern of late, we think it is more worrying for property developers that have planned new launches in the next nine to 12 months,” he said.

Sharizan added that cost inflation and higher borrowing costs had dented affordability and demand over the past six months based on the guided 10% drop in property prices.

“However, we take comfort in knowing that it will take at least 12 months before Gamuda starts selling the commercial and residential units in the market,” he said.

Meanwhile, the share prices of two other developers exposed to the Vietnam property market, SP Setia Bhd and Berjaya Land Bhd, were down 20 sen and 24 sen, to RM3.94 and RM4.86, respectively.

By The Star (by Fintan Ng)

OSK confident Crest Builder will meet FY08 earnings forecast

CREST Builder Holdings Bhd that reported poor 1QFY08 results due to the nature of a weak first quarter compared to the rest of the year would be able to make up and meet the expected FY08 earnings, said OSK Research.

The research house maintained its buy recommendation on the stock at RM1.01 with a target price of RM1.80 on the back of good inflow of new projects.

Crest Builder on Monday announced it had secured a RM165.9 million contract from Panareno Sdn Bhd to construct a serviced apartment in Bukit Damansara, Kuala Lumpur.

The project, expected to begin in the third quarter this year, would be added to the company’s current order book of RM1.2 billion.

“We estimate around 20% or RM33 million of the revenue from this project to be added to the company’s current FY08 total revenue of RM480 million.

“So far, there are two other projects secured in 2008, namely the condominium development at Jalan Ceylon, Kuala Lumpur, and the phase 4A construction of a 40-storey condominium,” it said, adding that all three latest projects were expected to be completed in 2010.

The research house said since the new order book replenishment from possible new projects in FY08 had already been included in previous estimates after the 1Q results, it was maintaining its FY08 earnings forecasts.

“Most of the impact in the contracts secured this year will be seen in FY09 and FY10 as the company will be able to gain most of the income from then on,” it said.

OSK Research said over 75% of Crest Builder’s revenue comes from its construction contracts and ongoing projects that historically start to pick up in the second half of the year.

“Construction gross profit margin has been around 8% to 12% since FY05 compared to 15% to 18% margin registered prior to FY05 due to margin squeeze from higher cost of raw materials that could not be passed on.

“However, new projects secured this year have already taken into account the higher price of oil, steel, cement and other construction materials,” it added.

Crest Builder edged up one sen to close at RM1.02 yesterday.

By The EDGE Malaysia

Construction sector feeling more than a pinch

KUALA LUMPUR: The government’s decision to liberalise the building materials industry amid soaring raw material costs came under scrutiny by local construction players in the first Malaysian Construction Summit organised by Master Builders’ Association of Malaysia (MBAM) and Asian Strategic and Leadership Institute (ASLI) here yesterday.

“All our steel bars for local consumption are produced locally, using heavily subsidised energy cost but we are paying the second highest price for steel bars in the region. Many of our members are facing difficulties with the rising costs,” MBAM president Patrick Wong said in his speech.

He told The Edge Financial Daily that the construction sector was facing cost pressure, more so with the recent move to liberalise the building material sectors, namely steel and cement, key components for the industry.

“We cannot lock in the prices of our raw materials when we are bidding for projects as there are insufficient supplies of raw materials for us to do so. The only way is for us to reduce the number of bidding for projects so as not to be caught by the spiralling prices,” he added.

IJM Corporation Bhd managing director and chief executive officer Datuk Krishnan Tan said in his speech that the industry was facing a tough time, with the shortage of skilled manpower due to a construction boom in the region stunting the growth of the local industry.

Some major players still managed to rake in higher profits despite the difficult situation, based on the quarterly financial results announced recently.

Malaysian Resources Corporation Bhd, for example, posted a net profit of RM14.7 million in the first quarter ended March 31, 2008 (1QFY08), versus RM12.8 million a year earlier, though revenue dropped to RM177.1 million from RM276.8 million.

UEM Builders Bhd’s net profit was up at RM29.2 million versus RM17.1 million, although revenue fell from RM714 million to RM596 million.

Putrajaya Perdana Bhd, which secured a RM180.5 million construction and maintenance contract for wharf structures in Port of Tanjung Pelepas (PTP) recently, posted a net profit of RM5.28 million on revenue of RM150.6 million in the first quarter.

Some recent major infrastructure projects announced by the government could help to revive some of the companies in the sector, according to ECM Libra Investment Research.

Loh & Loh Corp Bhd and IJM Corp are expected to benefit from the RM3.4 billion Seremban-Gemas railway double-tracking project with subcontracts worth RM490.1 million and RM273 million, respectively.

Loh & Loh closed unchanged yesterday at RM4.58, IJM was down 25 sen at RM5.40 while MRCB fell two sen to RM1.30. UEM Builder was down one sen to RM1.29.

By The EDGE Malaysia - The Edge Financial Daily - (by Tony C.H.Goh)

MBSB upbeat on 25% growth

KUALA LUMPUR: Malaysia Building Society Bhd (MBSB) is optimistic of achieving its internal target of at least 25% growth in its loans base this year, according to chief executive officer Ahmad Farid Omar.


Ahmad Farid Omar

This, together with a 15% revenue growth and maintaining a minimum return on equity of 7% formed the financier’s headline key performance indicators for the fiscal year ending Dec 31, 2008, which were filed with Bursa Malaysia.

Farid noted that MBSB’s share of the loans market was about 2%, which provided much room for improvement.

The financier’s niche lay in offering competitive loans for low medium to mid-cost residential properties, he said after the company AGM yesterday.

These properties are “sellable” as they cost less than RM500,000.

Furthermore, MBSB plans to enlarge the personal loan portfolio given its attractive margins. On average, it is approving about RM20mil worth of personal loans every month.

The financier had tied up with the National Heart Institute and Universiti Kebangsaan Malaysia Hospital to offer MBSB Assist, a special medical product, Farid noted.

It has also introduced a contract financing product to help small and medium businesses and revisited its bancassurance products.

MBSB would add by year-end seven new branches nationwide to the existing 27 outlets to reach out to more customers, Farid said.

On the entry of a foreign shareholder in MBSB, Farid said shareholders were informed during the AGM that a due diligence was currently under way.

However, no further details were provided, he said.

There were earlier reports that the Employees Provident Fund, which holds 54% of MBSB, was in talks with a party from the Middle East.

By The Star

Master builders ask for removal of 10% cement import levy

KUALA LUMPUR: While the government’s lifting of the ceiling prices of cement was welcomed by analysts and cement producers, the construction industry has called for the removal of the 10% levy imposed on imported cement.

Master Builders’ Association of Malaysia (MBAM) president Patrick Wong said the levy could only mean higher costs for the construction industry.

“This 10% tax does not make sense, as it contradicts the Asean Free Trade Area (Afta) rule, where cement will only be taxed at 5% and 0% come 2010,” he said, adding that it was only viable to import cement from Asean countries for logistical reason.

“Portland cement, which is no longer under price control, makes up the bulk of cement used in the local construction industry, hence the removal of the levy would help reduce our costs. This is unlike the liberalisation of the steel industry which does cover many categories of steel,” Wong said.

Research houses ECM Libra and Hong Leong Research were positive about the government’s move, saying it would alleviate the manufacturers’ cost pressure.

ECM Libra has upgraded the building materials sector to “overweight”, with two biggest listed cement producers Lafarge Malayan Cement Bhd and YTL Cement Bhd its top picks.

The prices of coal and paper bags, key cost components in cement production, had increased by more than 50% and 25%, respectively, since December 2006, ECM Libra said in a research note.

Share prices of cement manufacturers on Bursa Malaysia were buoyed by the ceiling price removal.

At the close of trade yesterday, Lafarge Malayan Cement Bhd was up 20 sen to RM4.54, YTL Cement Bhd added 10 sen to RM4.80, while Cement Industries of Malaysia Bhd (CIMB) ended unchanged at RM5.80.

By The EDGE Malaysia

Builders want cement export tax

AN INDUSTRY body wants the government to slap an export tax of up to 20 per cent for cement to ensure adequate supply in the local market.

The construction industry faces higher cement prices as well as an acute cement shortage, Masters Builders Association Malaysia (MBAM) said in a statement.

Removing the ceiling price will not sustain cement supply as cement manufacturers can still export their products overseas, MBAM president Patrick Wong said.

"MBAM strongly urges the government to also curb the exportation of clinker as this is also an important ingredient to produce cement," Wong added.

MBAM and The Real Estate and Housing Developers Association (Rehda) also suggested that the government consider abolishing the 10 per cent import duty on cement.

"The rationale is that, if contractors were to import, they have to consider other expenses such as handling or transportation and shipping charges which still add to the cost of materials," Wong said.

Rehda said the move is counter-productive.

"The move will result in increasing cement prices by local manufacturers," president Ng Seing Liong said in a separate statement.

By New Straits Times

Steel millers may face windfall tax

STEEL millers may face a windfall tax if steel bars sold in Malaysia continues to be more expensive than in neighbouring countries.

"Our neighbour Singapore does not produce its own steel bars and yet it can source this commodity at cheaper prices. We will take Singapore as a benchmark for international pricing for steel bars," Domestic Trade and Consumers Affairs Minister Datuk Shahrir Abdul Samad said.

Two weeks ago, he had proposed for a windfall tax on industries that make supernormal returns and are insulated from inflation.

The government can carry this out using The Windfall Profit Levy Act 1998, which is usually carried out annually by the Inland Revenue Board.

Despite the liberalisation of the steel bar and billet market on May 12, prices are still higher at around RM4,000 a tonne. In contrast, steel bars go for around RM3,679 per tonne in Singapore.

To a request by Master Builders Association of Malaysia (MBAM) to waive the need to apply for storage permit for steel bar imports, Shahrir replied: "Since the lifting of price controls on steel bars and cement, I acknowledged there were imperfections and we may have overlooked on certain procedures. I will get my officers to remedy this situation starting today."

Following the government's move to liberalise the steel bar and billet market from May 12, MBAM president Patrick Wong said steel millers continue to benefit at the expense of the construction industry.

"Only two types of steel bars classified under HS Code 7214 were liberalised.

"How about all seven steel bar variants under HS Code 7214 and all four wire rods under HS Code 7213?" Wong asked.

By New Straits Times (by Ooi Tee Ching)