CapitaLand buys 62pc of Malaysian mall for S$250m

SINGAPORE: Southeast Asia’s largest property developer CapitaLand said today it had paid S$250 million (US$183 million) for 62 per cent of a retail mall in Malaysia.

CapitaLand chief executive Pua Seck Guan said the latest acquisition puts the Singapore-listed firm on track to set up its Malaysian retail real estate investment trust (REIT) by the end of this year.

“Together with the earlier acquisitions of Gurney Plaza and Mines Shopping Fair, the three assets collectively amount to a total asset size of approximately S$840 milion (US$614.5 million),” Pua said in a statement.

The retail space in the Sungei Wang Plaza mall is located in the popular Bukit Bintang retail belt in Kuala Lumpur and includes parking lots.

The mall has close to 100 per cent occupancy and sees more than 24 million visitors annually.

By Reuters

Amarin to launch luxury units in Q3

The Amarin Group, a niche boutique high-end developer, will launch its new Amarin Wickham development in the third quarter of this year.

The project is valued at RM130 million with units varying in size from 3,000 to 9,000 sq ft with an average price of RM4 million per unit, the company said in a statement yesterday.

Amarin Wickham is a low-density, low-rise luxury development of 21 units of duplexes and triplexes of innovative design set, it said. The company said it has almost completely sold out all units in its first development named Amarin Kiara.

By Bernama

HDC awaits Tamadam proposal on halal park logistics

HALAL Industry Development Corp Sdn Bhd (HDC) is waiting for Tamadam Bonded Warehouse Bhd's proposal on logistics infrastructure framework for halal parks in the country.

Chief executive officer Datuk Jamil Bidin said once HDC receives the proposal, it will conduct a study to see if the framework adheres to its guidelines on halal parks.


Jamil: If the proposed framework is feasible, we will recommend it to the companies operating in the halal parks

"The study will not take long. We can even complete it within one week. If the proposed framework is feasible, we will recommend it to the companies operating in the halal parks," he said after the launch of HDC briefing on halal certification by Deputy Minister in the Prime Minister's Department Datuk Dr Mashitah Ibrahim in Petaling Jaya yesterday.

Second-board Tamadam is expected to reveal the framework on logistics infrastructure for halal parks at its annual general meeting today. The proposed logistics framework is likely to bring in multi-million ringgit income to the company.

Tamadam's comprehensive halal logistics components, supply and distribution framework for the halal parks will include warehouses, distribution centres, commercial properties and IT system.

Currently, there are four halal parks designated by the government at Port Klang Free Zone (PKFZ) in Selangor, Gambang in Pahang, Padang Besar in Perlis and Tanjung Manis in Sarawak.

Jamil said HDC can only recommend Tamadam's logistics framework for companies operating in halal parks, but it is up to the respective companies to adopt Tamadam's services.

He said the PKFZ halal park, whose infrastructure and building have been completed, has started to attract interest from a few companies.

The park in Sarawak has received more than RM1.3 billion investment from over 20 companies, mostly foreign-owned, while the one in Pahang has an anchor Bumiputera company, Prima Agri Products Sdn Bhd.

The halal park in Perlis, which is designed to utilise raw materials from Southern Thailand and expertise from Malaysia, is still in the conceptual stage.

Meanwhile, Jamil said since HDC took over the authority for halal certification from Jabatan Kemajuan Islam Malaysia (Jakim) in April this year, it has received over 380 applications from local companies and more than 40 applications from overseas-based companies.

From the total, HDC has approved 80 local applications and one overseas application.

"About 85 per cent of these applications were submitted online, through e-halal that was developed by Jakim," he said.

By New Straits Times (by Hamisah Hamid)

ARCHIDEX returns

Looking for an architect to build you a futuristic home? Check out what's the latest at ARCHIDEX 08.

The 9th Malaysia Architecture, Interior Design and Building Exhibition (ARCHIDEX 08) will be held from July 3 to 6 at the Kuala Lumpur Convention Centre, Malaysia.

ARCHIDEX 08, jointly organised by the Malaysian Institute of Architects (PAM) and C.I.S Network Sdn Bhd, will be held concurrently with the PAM 2008 Convention.

ARCHIDEX 08 involves the participation of over 280 companies that will occupy 780 booths. Participants include major names in the building industry from Malaysia, Australia, Singapore, Korea, France, Philippines, Austria and China.

Recognised as Malaysia’s key exhibition for architects, interior designers and the building industry, the ARCHIDEX 08 involves the participation of over 280 companies that will occupy 780 booths. Participants will be from Malaysia, Australia, Singapore, Korea, France, Philippines, Austria and China.

From special flooring material to designer furniture, ARCHIDEX 08 will have the latest to offer the most discerning property builder or developer.

Two of the main highlights are the International Architectural Design Conference (DATUM: KL 2008) and Kuala Lumpur Design Forum, where local and international renowned architects and interior designers will present their work and share design philosophies.

Other events and highlights held concurrently at ARCHIDEX 08 are:

- Building Industry Dinner

- Architects’ Day

- Designers’ Day

- Biz @ ARCHIDEX

- New Products Award

- Professionals Networking Evening

- PAM 2008 Convention Architectural Site Visits

Continuing Professional Development Programme (CPD) Points

Architects who attend the conference, forum, site visit, Biz @ ARCHIDEX (technical talk) or visit ARCHIDEX 08 are entitled to up to 13 CPD Points.

Exhibition hours are from 11am to 7pm.

* For details on ARCHIDEX 08, call 03-7982 4668, visit www.archidex.com.my or e-mail info@archidex.com.my. For information on DATUM and KL Design Forum 08, contact Pusat Binaan Sdn Bhd at 03-2693 2843, e-mail pbsbfc@po.jaring.my / info@pam.org.my or browse their website at www.pam.org.my

By The Star

British home loans plummet

LONDON: New British home loan approvals nosedived at their sharpest annual pace in at least a decade to hit a record low in May, figures showed yesterday, raising fears the housing slowdown is about to escalate into a crash.

The credit crunch has forced banks to toughen up lending terms, making it harder for Britons to get affordable mortgages and house prices have already started to fall at monthly rates not seen since the slump of the early 1990s.

Economists worry that a housing market meltdown will drag the economy into recession at a time when the cost of living is rising fast as food and fuel prices soar on global markets.

The British Bankers’ Association said mortgage approvals for house purchase – an indicator of future house prices – fell to 27,968 in May from 34,752 in April. That was 56% down on a year earlier – the biggest drop since the series began in 1997.

“A very worrying picture of how the credit crunch is unfolding. A US-style housing slump looks increasingly likely,” said Michael Hume, an economist at Lehman Brothers. “The drop in mortgage approvals and lending points to a housing market that is rapidly grinding to halt under the pressure of higher mortgage interest rates, tighter bank lending standards, and declining confidence.”

By Reuters

Mah Sing in talks to sell two Southgate blocks

EN BLOC SALE: Leong showing a model of the Southgate project after the AGM. Mah Sing is targeting to conclude the sale of at least one block by the year end.

Mah Sing Group Bhd is in talks with several foreign parties for an en bloc sale of two of its five blocks of buildings at its Southgate commercial development in Sungai Besi, Kuala Lumpur.

The mid-to-high-end property developer is targeting to conclude the sale of at least one block by the year-end, group managing director Datuk Seri Leong Hoy Kum said.

Each block could go for "over RM100 million", he said.

"We are actually negotiating with these foreign purchasers. We have strong interest from the Middle East - such as the United Arab Emirates and Qatar - and also from a neighbouring country," Leong said, declining to elaborate.

Southgate, Mah Sing's third commercial development in Kuala Lumpur, should be completed in 2011 and is expected to breathe new life into the surrounding areas such as Pudu and Loke Yew.

The group, which also does residential developments, has a sales target of RM560 million for 2008 and plans to launch RM706 million worth of properties this year.

Mah Sing plans to eventually raise its selling prices for new property launches that have yet to be built, given rising building material prices which have resulted in higher construction costs.

"The sooner the buyer commits now, they may enjoy more attractive pricing. But eventually, we will have our prices increased in tandem with the construction cost increase," he said.

He pointed out that construction costs, just prior to the fuel price increases in Malaysia, have gone up by between 20 per cent and 25 per cent.

Mah Sing, which had a healthy cash balance of RM130.7 million as at end-March this year and a low gearing level, is also looking to expand its landbank.

"We are planning to buy more land in the Klang Valley, Penang and Johor, but we are not in a hurry as the land must be able to fit well into our quick turnaround business model," Leong said.

Leong is "selectively bullish" on the local property sector for this year and 2009, and sees growth for branded developers' medium-to-high-end residential and commercial projects in good locations.

The group, which has yet to venture abroad, is also scouting for opportunities in regional markets such Vietnam, China and India.

In Vietnam, for instance, it would be interested in doing a mixed development project with a local partner, he said.

By New Straits Times (by Adeline Paul Raj)

Mah Sing sees RM560m sales

KUALA LUMPUR: Mah Sing Group Bhd targets RM560mil sales out of RM706mil worth of properties to be launched this year, as it is “selectively bullish” about the property sector in 2008 and 2009, managing director Datuk Seri Leong Hoy Kum said.

Despite rising inflation and fuel prices, its sales and launch targets were on track, with the group raking RM116mil in sales and RM201mil in launches for the first quarter, he said.

“The group’s focus on customer-centric homes and value investments has resulted in strong sales for both the group’s residential and commercial projects,” he said after the company AGM yesterday.

Leong said the group had been closely monitoring the increase in building material prices over the past year and had been building ahead of schedule to lock in construction costs.

On rising fuel prices and inflation, he said good property companies with innovative products and the flexibility to adjust to current market needs should emerge stronger.

“Things may not be all that bad for the property sector. Not only are the banks in good shape, households are not over-extended. The ratio of household debt to gross domestic product in our country is very low compared with countries like Britain and the US,” he said, adding that the group would be able to maintain its performance.

Mah Sing reported a 24% year-on-year increase in net profit to RM81.13mil. For the first quarter ended March 31 its net profit jumped 25% to RM22.31mil.

It has 584 acres of land bank left with a total gross development value (GDV) of RM3bil and unbilled sales of RM1bil as at March 31.

On its Southgate Commercial Centre, Leong said it had seen a strong take-up of RM40mil during its private preview for the Vivo block.

The recent launch of the Vox block also saw about RM78mil sales or 70% of available retail units and office suites sold. It is talking with some foreign parties to sell en bloc two of the five blocks.

“We’ve nine months to build the car park. This would be a window period for the rising cost of construction materials to cool off,” he said. He however noted that if costs kept rising, future launches would inevitably be more expensive.

Mah Sing’s residential properties also saw strong sales. For example, the first phase of Hijauan Residence in Cheras is 99% sold while launched units in Kemuning Residence in Shah Alam is 75% sold. Launched units in Sierra Perdana in Johor Baru also saw take up of 71% in sales value.

By The Star

Contractors asking for price revision of projects

Developers may be passing on price ncreases to customers.

PETALING JAYA: More contractors are asking for a revision in their contract prices following the spike in prices of building essentials.

LBS Bina Group Bhd group managing director Datuk Lim Hock San said the company had been approached by “one or two” of its contractors for a change in the price of its contracts.

“We had to revise upwards the price or they would have run away,” he said, adding that the firm had already started to slow down in its property launches given the current challenging environment.

Meanwhile, Mah Sing Group Bhd group managing director & group chief executive Datuk Seri Leong Hoy Kum said that the company’s launches were “on track.”

“We have been closely monitoring the increase in building material prices over the past year, and have been building ahead of schedule to lock in the construction costs as we foresaw escalating raw material costs.

“Hence, construction of selected projects is at the tail end, and both Mah Sing and our contractors have locked in the old costs,” Leong said.

OSK Research analyst Mervin Chow said: “A lot of property developers have admitted that contractors have been coming to them, asking for changes to be made to their contract prices, given rising costs. It is a bit of a worrying situation right now.”

Chow said that while these “re-negotiation” processes had started two to three months ago, it was more pronounced now, given the added pressure of the recent hike in fuel price.

The price of steel, one of the main raw materials for property players for example, has almost doubled year-on-year to around RM3,600 per tonne currently.

Strong demand from China and the Gulf Cooperation Council region has helped push up prices thus far.

Contractors’ overall costs are said to have gone up as much as 28% to date.

TA Securities property sector analyst Kamarul Zaman Hassan said it was inevitable that re-negotiations of contract prices would occur, given the rise in raw materials, such as steel and cement.

“Yes, the contractors would definitely ask to re-negotiate. They are likely to ask for variation orders (VOs) to cover the rise in raw material prices,” he said.

Both developers and contractors would share the burden of rising costs in the case of ongoing projects, he said, adding: “For the new projects, it is very likely that the developer is the one which has to bear the higher building costs.”

Should contractors be unable to obtain VOs, the possibility of projects being abandoned will be high, in particular if smaller contractors – who do not have the financial strength to absorb higher raw material prices – are involved.

“And yes, obviously developers involved in new projects cannot stomach the rise in building materials and will be passing it on to customers,” Kamarul said.

Analysts had warned that certain property segments, i.e. those priced below RM250,000, were very price sensitive, meaning higher prices would see an erosion in demand.

“This puts developers in a very delicate situation. As we can see, many developers are already thinking about postponing their launches,” Kamarul added.

Having said that, higher-end office and commercial developers are still expected to enjoy brisk sales despite higher selling prices.

“The impact really depends on the company’s products,” he said.

Meanwhile, Ng Sem Guan who covers the steel sector at OSK Research feels that it is not a necessity to stockpile steel.

“The Government will need warehouses for this purpose. Basically, there is a lot of money involved to stockpile,” he said, adding the steel price would at most rise 20% and expecting it to hit RM5,000 per tonne “is a bit too much.”

Ng said at current prices, there was still some upside, probably up to 20%.

“But it (steel price) goes through a cycle, it will reach a point when it has to come down,” he added.

Last week, Master Builders Association Malaysia president Patrick Wong urged the Government to stockpile steel to stabilise the rising cost of steel products.

He said the proposal came in the wake of steel millers expecting prices of steel bars to hit RM5,000 per tonne.

By The Star (by Yvonne Tan)

Asas Dunia: Priority is to sell unsold units

PROPERTY developer Asas Dunia Bhd said it will concentrate on selling off what's already been built this year and hold off new launches.

The Penang-based developer has three new residential projects pending approval in Nibong Tebal, Jawi and Permatang Tinggi in Seberang Prai, with a total gross development value of RM215 million.

"Once approval is granted for the projects, we will begin earthworks at the 40ha site. However, timing of the launches will hinge on construction costs versus our selling prices," Asas Dunia managing director Datuk Jerry Chan said after the company's annual shareholders' meeting in Penang yesterday.


Chan: Penang's construction sector is going through a period of "hyper-inflation"

Chan said the construction sector in Penang is currently going through a period of "hyper-inflation" with rising cement and steel prices.

As such, any new launches by the company this year will depend on the backlog of unsold properties and its gearing level.

Asas Dunia's borrowings stand at be-low RM50 million.

Chan said its current unsold residential units were worth RM95 million, industrial RM13.5 million and commercial RM10 million.

"Our priority for now is to dispose of the unsold units, which will be priced between 25 per cent and 30 per cent higher than what we were selling before."

The unsold residential units are priced bet-ween RM110,000 and RM300,000, industrial ones RM350,00 and RM500,000, and commercial units RM180,000 and RM300,000.

All of Asas Dunia's projects are located on mainland Penang. It has 560ha of landbank held for development.

"The development value of the buildings, when erected on our landbank, will be in the region of RM2.8 billion," Chan said.

He said the federal government's plan to construct the second penang bridge has also generally enhanced the value of the group's properties and developments.

"It is a major relief for us to hear that the government will go ahead with the project as that will increase our properties' accessibility," he added.

By New Straits Times (by Marina Emmanuel)

Asas Dunia raises prices

GEORGE TOWN: Asas Dunia Bhd is raising prices of its new landed properties on the mainland by 25% to 30% next year due to soaring energy and raw material prices.

Group managing director Datuk Jerry Chan said the group planned to launch 1,176 single- and double-storey terraced and semi-detached properties in Bukit Mertajam, Jawi and Nibong Tebal.

The gross development value of the new properties is about RM215mil.

“We are likely to start construction work in two months. We will launch the properties only when we have completed about 50% of the units next year,” he said after the company AGM yesterday.

To reduce construction costs, the group would build units with smaller built-up areas, Chan said.

“We would also build more single-storey units, which will comprise about 30% of the new launch,” he said.

For existing unsold properties, the group would increase selling prices by about 10%, he said.

Landed properties on the mainland are currently priced between RM110,000 and RM300,000 per unit, depending on the built-up area, type and location.

Chan said soaring raw material prices would result in lower supply of properties.

“Developers will be more cautious in launching new projects. The population will continue to grow while there will be limited supply of properties.

“In this scenario, property prices are likely to escalate further,” he added.

By The Star (by David Tan)

Singapore plans to develop Islamic REITs

SINGAPORE'S central bank is seeking to develop a market in Islamic real estate investment trusts to attract funds from the wealthy in Asia and the Middle East.

"There is budding market interest to explore Syariah-compliant REIT listings and property players are looking to the Singapore REIT market," Tai Boon Leong, executive director at the Monetary Authority of Singapore, said in an e-mailed statement.

Rising wealth and economic growth in Asia will boost demand for Islamic investments, he said.

The Southeast Asian city-state, competing with neighbours Malaysia and Indonesia, is encouraging financial institutions to introduce more products that comply with Islamic law, or Syariah.

The Islamic financial market may triple in size to US$2.8 trillion by 2015, according to an estimate from the Kuala Lumpur-based Islamic Financial Services Board.

Singapore had 19 publicly traded real estate investment trusts, or REITs, and one property trust with combined market capitalisation of S$27 billion (US$19.8 billion) in 2007, the largest in Asia outside Japan, according to the central bank. Malaysia's KPJ Healthcare Bhd in August 2006 offered the world's first publicly traded Islamic REIT.

"The growing pool of liquidity in the Middle East portends well for Asia as much of it is reportedly looking for suitable investments in Asia," Tai said in prepared remarks at an Islamic finance meeting in Malaysia.

In May, Singapore's central bank said it plans to start a so-called facility that will allow it to start a bond market complying with Islamic principles. The Islamic bonds, or sukuk, will be offered in Singapore dollars and priced against conventional government securities.

With an Islamic REIT, payments to investors are based on rental income or dividends, while offering the potential for capital appreciation. Syariah, or Islamic law, bans the exchange of interest and investment in businesses such as tobacco, alcohol and gaming.

By Bloomberg

AMP to up investment

SINGAPORE: AMP Capital Investors said yesterday it was aiming to boost its long-term investment in Asia properties to A$16bil (US$15.3bil) and will kick off the plan by doubling its industrial property assets in Singapore.

The investment unit of Australia's top pension fund manager AMP Ltd is also looking to buy properties or acquire businesses such as real estate investment trusts and developers, in Japan and China.

“Generally markets are coming off, and we see that as a buying opportunity over the next 18 months,” said AMP Capital's chief investment officer Andrew Bird at the Reuters Global Real Estate Summit in Singapore.

Andrew Bird at the Reuters Real Estate Summit - Reuters

“We see an opportunity to grow our business in this kind of environment, to buy under-priced assets or under-priced businesses,” said Bird, whose firm now has about US$100bil in funds under management, including US$15.3bil invested in Australian property.

He said Singapore's industrial property sector had yet to reach its peak.

AMP Capital has acquired some S$300mil (US$220mil) worth of industrial properties in the city state since opening its first Asian office in Singapore February last year. The firm also set up a new Tokyo office in December.

Those Singapore assets are its sole property investments in Asia so far.

Bird said Singapore and Japan were the firm's top choices for acquisitions as it has staff on the ground conducting research, and plans to do the same for China soon.

“The next place we want to have people on the ground will be in China, as long term that is a very attractive market to us,” Bird said.

“We don't believe in flying into a place with our cheque books and fly out again with assets. That tends to be a good way to lose money,” he said.

Bird said the firm had scrapped plans to list the Singapore properties through a real estate investment trust (REIT) due to poor financial market conditions and volatility, and now preferred to focus on unlisted wholesale funds.

AMP Capital, whose Global Direct Property Fund has raised A$200mil from pension fund managers since it was launched in 2006, also acquired three properties from the United States and Italy last year, worth a total of A$122mil.

“The reason we haven't invested any money from that fund in Asia is because Asian markets have been very strong, while the US market was probably the first to decline,” he said.

With the Australian stock market facing a downturn, Bird expects to see further consolidation among Aussie firms and said AMP Capital was looking at buying opportunities in the market.

By Reuters

ETA to raise US$400m for Asia markets

SINGAPORE: Dubai's ETA Star Property Developers plans to raise US$400mil through a fund and Islamic bonds for a drive into Asian markets as diverse as India and Laos, but rising costs are deterring the firm in Turkey and Egypt.

The company, part of privately held ETAAscon Group, is looking to supplement its own funds to develop 120 million sq ft in India, and enter other markets in Asia. It has also just snapped up land in Vietnam and Malaysia.

The new fund will be aimed at Middle East investors, said ETA Star Property's executive director Abid Junaid. “We're talking to institutional investors to raise US$250mil in a first tranche,” Junaid told the Reuters Global Real Estate Summit in Singapore.

Abd Junaid

He added that ETA Star also wanted to raise US$100mil-US$150mil from Islamic bonds, or sukuk: “Syariah-compliant products are very much in demand in the Middle East.”

ETA Star is one of several Middle East firms, including EMAAR Properties and Nakheel, that have joined a wave of foreign investment in Indian property since the country eased rules on inward investment in the construction industry in 2005.

Junaid, who is from the southern Indian city of Chennai, said the firm had bought about a fifth of its land in India before the boom of the last three years, which has seen values in many areas quadruple. ETA Star is building housing, information technology parks and shopping centres in Chennai and Bangalore.

Although internal rates of return for property investment in India are still above 20%, Junaid was worried that soaring construction costs were making property more expensive, and slowing sales of housing.

By Reuters

MIEA calls for more estate agents on board

KUALA LUMPUR: The Malaysian Institute of Estate Agents (MIEA) wants the board of valuers, appraisers and estate agents to have more estate agents to “truly” reflect this group's contribution.

MIEA president K. Soma Sundram said it was disheartening that MIEA had only two members on the board.

K. Soma Sundram

“We will be writing to the board on this issue soon. We in MIEA do not want to see that policy repeated in the registration of negotiators.

“This subject is close to our heart and almost every estate agent I have met feels that the negotiators are the pride of estate agents and should be their custodians,” he said at the MIEA annual dinner here recently.

He said MIEA had made significant contributions to the property sector. “Gone are the days when we were not even considered players in the industry.

“It is time MIEA is consulted and invited for meetings and discussions (with the Government) which may include pre-Budget meetings.”

He added that MIEA was prepared to submit suggestions to the Customs Department on service tax collection.

On the registration of negotiators, he said the exercise should be done by MIEA, adding that this was gaining momentum and attracting interest at all levels.

“Some see it as a great opportunity to make money through the registration; some are fearful that this exercise will create an imbalance in the control of the fraternity, while some pessimists believe it is a waste of time,” he said.

He said MIEA should not be sidelined in this issue because only MIEA represented the estate agency profession and practice. Moreover, it had implemented this programme for the last 10 years with over 2,000 negotiators.

“It is our view that we don’t need to reinvent this particular wheel. I must agree that there is room to improve this registration,” he added.

On commissions payable to negotiators, he said half the agents wanted a 70% ceiling while the other half wanted an open plan.

“We will soon submit our proposal to the board and hope it will act on the suggestions swiftly.”

At the dinner, he officially launched the MIEA ‘UNITY 500’ campaign to attract 500 members.

By The Star (by S.C.Cheah)

Selangor to implement build-then-sell concept

SELANGOR aims to take the lead in the “build-and-then-sell” concept for housing projects to reduce the incidence of house buyers being cheated by unscrupulous developers.

“I'm trying to work with the PKNS (Selangor Development Corporation) on one or two projects first. We will also raise this issue with the Housing and Local Government Ministry and Parliament,” said Selangor Mentri Besar Tan Sri Abdul Khalid Ibrahim when speaking at the opening of Taman Medan assemblyman Haniza Talha's service centre in Taman Medan Pejasa, Petaling Jaya.

Khalid: In most developed countries, there is no such thing as paying for the house before it is built.

“In most developed countries, there is no such thing as paying for the house before it is built. For example, in Australia, you have the right to sell only when the project is completed.

“But in Malaysia, you can sell your housing project even before you complete it.”

It was reported earlier that there were 141 abandoned projects in the state, 108 of them housing projects.

Khalid said such projects had been abandoned since six years ago and exceeded more than RM1 billion in value.

“We don’t want this to be done immediately, but it has to be done in stages so that in future, there will be a lot more people who will build first before selling.

“The state and local governments are now facing a lot of problems as people are demanding to know why we allow buildings or houses to be built in a shoddy manner.”

He said the state government would consider giving incentives to developers who wanted to implement the concept, but cautioned that pricing was an important issue that needed to be thrashed out with the Housing and Local Government Ministry.

On resolving the problem of the present abandoned projects, Khalid said that they would search for the runaway developers and talk to the distressed house or flat buyers as well as bank representatives, so that they could work towards completing the projects.

He also addressed the issue of companies which abandoned previous projects and come up with new ones under a new company.

“The state government won't blacklist the company, but we will blacklist the directors and owners of the companies,” said Khalid.

“We are keeping track of their names based on their IC numbers (just like Bank Negara's way of assessing credit risks) and building a database based on that information.”

By The Star (by Jade Chan)

Gamuda and WCT eye RM1b job

DOHA: Local construction firms Gamuda Bhd and WCT Engineering Bhd, which have a strong partnership in the Middle East, are confident that they will be able to jointly secure a new highway project worth at least RM1bil in Qatar this year.

Company officials based in the Gulf state said the tender for phase two of the Dukhan highway was expected to open as early as next month, as the first phase of the project nears completion.

“We believe we are in a good position to get the contract as this is actually an extension to the current highway project that we are doing, which is almost 90% completed,'' general manager for the Dukhan highway project S.D. Boon told visiting Malaysian reporters in Doha last week.

He said the Gamuda-WCT joint venture (JV) was already pre-qualified for the tender, and was likely to be called in to submit its bid soon.

The JV is the contractor for the 43km four-lane dual carriageway linking the industrial area in Dukhan to Shahaniya. The contract was awarded in July 2005 for 750 million Qatar riyals or RM784mil at the time.

Boon said the second phase of the highway would probably cost more to construct, partly due to higher material cost.

Gamuda has a 51% stake in the JV, while WCT owns 49%.

Shahaniya is located midway between Dukhan on the west coast and the capital city Doha on the east coast of the peninsula.

Qatar's public works authority is planning to upgrade the road link between the country's thriving financial centre in Doha and the fast growing oil and gas industrial area in Dukhan.

Apart from the Dukhan highway, Gamuda and WCT are partners in a consortium led by China’s Sinohydro Corp Ltd for engineering works being done at the New Doha International Airport (NDIA).

The completion date for the NDIA contract has been pushed back to 2010 to make way for additional works that had bumped up the original contract value awarded to the consortium from RM1.8bil to RM2.8bil currently.

Individually, the two companies are also involved in several infrastructure development projects in the region. Both had excellent track records there, analysts said.

A new job secured in the Middle East – where margins are typically higher compared with local projects – would help shore up sentiment on Gamuda and WCT.

Shares in Gamuda fell 6 sen yesterday to RM2.13 – its lowest level since November 2006. Meanwhile, WCT's share price hit a one-year low of RM2.89 last Friday. The stock was down 2 sen at RM2.95 yesterday.

By The Star (by Izwan Idris)

CapitaLand in China property fund venture

CAPITALAND Ltd, Southeast Asia's biggest developer by sales, and China's biggest state-owned investment firm Citic Group, formed a 500 million yuan (US$73 million) fund to invest in the country's business parks.

CapitaLand will hold a 50 per cent stake in the real estate private equity fund, while Chinese investors will own the rest of the developer's first yuan-based fund, the companies said in a statement to the Singapore exchange.

The Citic CapitaLand Business Park Fund is Singapore-based CapitaLand's seventh private-equity fund in China.

By Bloomberg

Scomi eyes Penang, India monorail deals

SCOMI Engineering Bhd, a unit of Scomi Group Bhd, is upbeat about securing a monorail contract in Mumbai, India, but hopes to secure the monorail project in Penang first.

Its president, Hilmy Zaini, said the company wants to introduce its second generation monorail called Sutra, which was launched in November last year in Penang, before launching the new innovative system to other parts of the world.


Hilmy Zaini

"It would be good for us to launch the new Sutra at the company's hometown in Penang," he told reporters after Scomi Engineering's annual general meeting in Kuala Lumpur yesterday.

Hilmy was asked to update the progress of the monorail project in Penang, which is currently facing uncertainty.

"There is nothing much to update. We are waiting for the results (whether to go on with the project or not). We don't know when (a decision will be made).

"The Mumbai monorail project is closing the tender in a few weeks time. But we hope to get the Penang monorail first," he said.

Scomi is part of a group that includes Malaysian Resources Corp Bhd (MRCB), which is bidding for the monorail project on Penang island.

In January this year, Syarikat Prasarana Negara Bhd awarded a letter of intent for the project to MRCB, which formed a consortium with Penang Port Sdn Bhd and Scomi Engineering Bhd.

However, the project has been put in doubt after the Pakatan Rakyat win in Penang during the last general elections on March 8.

Apart from Mumbai and Penang, Hilmy said, the company is also looking to bid for monorail projects in the Middle East, Vietnam, Africa and several cities in India.

He said the company has been engaged to conduct feasibility studies in Vietnam and Saudi Arabia.

"We hope to complete the study in Vietnam in three months times, while in Saudi Arabia it will take between six months and a year to complete.

"When completed, we will present our findings to the respective authorities and submit our bids for the projects," he said.

Hilmy said the company aims to set up two new machine shops in a year, starting from 2009.

By New Straits Times (by Kamarul Yunus)

CRSC to unveil The Parc

CRSC Property Sdn Bhd plans to launch The Parc high-end office suites in Rampai Business Park in Kuala Lumpur in the next few months.

Located on 3.84 acres in Setapak Jaya, The Parc comprises two blocks of seven storey buildings with 161 strata-titled offices worth an estimated gross development value (GDV) of RM100mil.

The built-up of the office suites is between 1,500 sq ft and 3,000 sq ft and priced from RM300 per sq ft. It is targeted at young professionals including engineers, accountants, lawyers and quantity surveyors.

“A unique feature of the project is that every unit has its own private lift and exclusive access to the office from the basement car park,” senior project director Chia Kim Puin said in an interview with Starbiz.

Datuk Chia Kim Puin

The Parc also boasts of scenic park and lake views.

Chia said The Parc has a wide range of facilities including food and beverage outlets, a gymnasium and spa.

It will also be equipped with wifi and broadband facilities as well as guards and closed circuit televisions on all public areas and lift lobbies.

On CRSC's new projects, Chia said the company would focus on phase four of Rampai Business Park project, which was a joint venture with Kuala Lumpur City Hall.

Comprising 100 terrace factories and 400 medium-cost apartments, it has an estimated GDV of RM100mil.

CRSC was the project manager for phase three of Rampai Business Park, a joint venture between Pancaran Nilai (M) Sdn Bhd and DBKL.

Chia said CRSC would also partner with DBKL for a 90-acre mixed development, Jinjang Tambahan in the north of Kuala Lumpur that has an estimated GDV of RM1.5bil.

The project would keep the company busy over the next eight to 10 years.

Currently, the ratio of the company's projects between mixed development, commercial and industrial projects is 40:30:30.

Of its total landbank of 300 acres, 100 acres are in Kuala Lumpur.

In another joint venture, CRSC is partnering with Aman Resorts International to develop the six-star Belum Island Resort in Perak. Phase One of the 5,000 acre project will cost RM50mil.

The first phase of the development will kick off in the first quarter next year. The entire project will be completed in 20 years over four phases.

Phase One comprises 20 to 30 floating bungalow units on Tasik Temenggor. The proposed room rate for each bungalow will be at US$1,000 a night.

Meanwhile, CRSC plantation unit, Citarasa Murni Sdn Bhd has embarked on the Lancang Agriculture Project to cultivate organic fruits and vegetables.

Khazanah Holdings Bhd's subsidiary Malaysian Agrifood Corp Bhd will market the produce on a contractual basis for both the local and export markets.

“We also see potential in agro-tourism and hope to open our farms to the tourists,

“This venture will contribute about 20% to the group’s revenue in the next 10 years,” he said.

CRSC posted RM50mil in revenue for the financial year ended Dec 31, 2007.

By The Star (by Shannen Wong)

UEM plans RM1b Cybercity venture

Property unit finalising 40ha land deal with Setia Haruman, says company source



UEM Land Bhd will acquire about 40ha from Setia Haruman Sdn Bhd, the master developer of Cyberjaya, and launch its first housing project in the digital city worth some RM1 billion by year-end.

It is learnt that UEM Land- a unit of UEM World Bhd, Malaysia's third biggest construction concern - will buy the land for less than RM150 million to construct over 3,000 units of superlink, semi-detached houses and condominiums.

A company source told Business Times that UEM Land plans to sell the houses from RM500,000 each, and condominiums starting from RM200,000 per unit.

"Both firms are finalising the land deal. It is Setia Haruman's objective to equip Cyberjaya with 6,200 homes by 2010," the source said.

Cyberjaya, Malaysia's IT hub, has 2,700 houses comprising landed properties and apartments.

The homes were built by Setia Haruman, Country Heights Holdings Bhd, MK Land Holdings Bhd and Emkay Group of Companies.

The source said by 2010, UEM Land will add 1,000 homes in Cyberjaya and another 1,000 units will come from Cyberview Sdn Bhd, one of four key stakeholders of Cyberjaya besides Setia Haruman, Multimedia Development Corp and Sepang Municipal Council.

Cyberview will launch myHome@Cyberjaya, its first housing project, by August.

The other players in the intelligent city now are Emkay Group and Country Heights, building over 500 apartments collectively.

Emkay Group and UEM Land, which hold 75 per cent and 25 per cent of Setia Haruman respectively, are buying land in the company to jump-start land purchase by other developers, said the source.

Emkay Group had previously bought land from Setia Haruman to develop an IT park, dubbed MKN Embassy TechZone, corporate buildings and affordable housing.

By New Straits Times (by Sharen Kaur)

Signs of distress in the market

How can you tell when the property market is softening?

There are several telltale signs like developers taking a longer time to sell their properties, delaying new launches and giving away more freebies and incentives. A weakening market will also see a decrease in rental and capital values.

There are also more subtle signs like the developer keeping a low profile, the project slowing down, the development changing hands or the developer maintaining the original selling price but reducing the built-up area.

There are also instances where the developer continues to build the houses despite very slow sales but this situation is masked as “build then sell”. Some developers might earlier claim they have sold most of their units but later said they have taken back the units and selling en bloc as prices have escalated.

These ominous “signs” have mostly surfaced.

Of late the property development industry is feeling the jitters as crude oil prices continue to soar. The industry is grappling with increased cost of doing business, rising price of building materials, inflationary trends in cost of living, global economic uncertainties, rigid policies for developers and a softening market.

Property developers are also faced with eroded profit margins, higher construction costs, intense competition, and fear that rising inflation was affecting buyers' sentiment and affordability.

To make things worse, they are burdened with what Real Estate and Housing Developers' Association (Rehda) president Datuk Ng Seing Liong described as “onerous contributions and social obligations”.

Datuk Ng Seing Liong

Although he did not elaborate when speaking at the official opening of Mapex 2008 in Kuala Lumpur last week, it is clear what he meant: developers having to provide all sorts of amenities from building police stations, community halls to flyovers.

Many developers have argued that even in the best of times, these “social obligations” were “eating” into their profits, what more in the current tough market condition.

If the inflationary pressures continue, Ng warned that another “recession is very near!”

The Government has proposed various measures in the 2008 Budget to sustain economic growth and provide such incentives as 50% waiver of stamp duty for purchase of one house costing not more than RM250,000 from Sept 8, 2007 until Dec 31, 2010; exemption of real property gains tax; allowing monthly withdrawal of EPF contributions for housing purposes and a RM50mil fund to guarantee housing loans for buyers who do not have fixed income.

However, Rehda feels this is not enough and wants policy changes.

A “thorn” in their flesh is the bumiputra quota in which Rehda wants the release procedures to be standardised to reflect a more transparent and structured release mechanism.

“Bumiputra quota should not exceed 30%, based on sales regardless of the units being sold to bumiputras were the identified lots or not. Bumiputra discount should be capped at 5% and only applicable for houses priced at RM250,000 and below, excluding low-cost and low-medium cost houses,” said Ng.

Ng said it was unfair for someone who could afford a multi-million ringgit property to enjoy a bumiputra discount that differed from state to state (7% discount for Selangor, 15% for Johor and 10% for other states).

Rehda, he said, also wanted the Government to take over the provision of low-cost public housing, thus freeing the private sector developers to focus more on market driven products.

The Government should also review the price of low-cost housing from the current RM42,000 to RM60,000 to mitigate increased costs.

Rehda hopes the Government would abolish its decision to charge 10% import duty on cement importers immediately. “Instead we hope the Government will impose 10% to 20% export duty on all cement and steel materials to ensure adequate supply,” he added.

Rehda vice-president Datuk FD Iskandar said it was inevitable that house prices would go up soon as construction costs had shot up by 30%.

“Prices of raw materials from steel to cement have all gone up. It will be very challenging for the property development industry. Contractors are crying out for a revision of their contract prices and they will walk off if their demands are not met. Projects will stall,” he said, adding there was also a shortage of steel and cement whose prices have risen to RM4,000 per ton and RM18 per bag respectively.

Iskandar who is also the Rehda Selangor chairman said there were construction firms who would be too glad to get out of a contract now that prices of everything had soared. They would stand to lose, as there was no price fluctuation clause to allow for an upward revision of prices. “Some of them prefer to wait until prices have stabilised,” he said.

Unless oil prices drop drastically (which many industry players do not see it likely to happen) and the inflationary trend is checked, the economy in particular the housing and construction industry will be heading for a downturn.

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

Ben Rautin eyes more China projects

BEN Rautin Sdn Bhd, a global trading firm is set to strengthen its foothold in China, eyeing for projects in the petrochemical, residential and tourism-related industries, with a combined projected investment of US$7 billion (RM22.75 billion) in Beihai City.

Its founder and managing director Ismail Rautin Ibrahim said the company has been approached by the Beihai City Foreign Investment Services Bureau to spearhead the development of the three potential industries in the city, which is located in the Guangxi province.


Ismail: Ben Rautin is looking for partners to develop the petrochemical, residential and tourism areas in Beihai

"The bureau sent an invitation letter to me on May 9, seeking the company's 30 years experience in China to participate in the development of the three industries in Beihai.

"They want the group to spearhead a group of international and local companies to help develop the three industries in the city," he told Business Times in Kuala Lumpur.

Ismail said he went on May 12 to explore the potential areas for the mammoth projects in Beihai, the second largest city in Guangxi after Nanning.

"It was originally intended to be an exploratory and investigative mission to seek the potential of the projects but it turned out to be a confirmed participation on our part.

"Both the group and the bureau are currently drafting a memorandum of understanding (MoU) to develop the areas into a petrochemical hub, mini city and tourism destination in Beihai.

"We hope to sign the MoU by July before the starting of the Olympics Games slated for August," he said.

Ismail said Ben Rautin could not tackle all the projects by itself, and is looking for partners to develop the petrochemical, residential and tourism areas in Beihai.

He indicated that the company may tie up with a Qatar company for the petrochemical portion, and with a Taiwanese property developer for the residential area.

Ben Rautin entered China's market in 1977, initially for trading activities. Its earlier major project included the construction of residential and commercial properties in Guizhou province in 1990s.

On the company's other projects in China, Ismail said they are still progressing but need time to settle various issues, including land matters.

It was reported that Ben Rautin has a working interest in the development of a petrochemical complex and port projects in Lufeng City. The initial cost of these projects in Lufeng City amounted to about US$7 billion.

Ben Rautin was also offered a stake to participate in the US$6.1 billion (RM19.83 billion) hydropower project along the Amoijiang river in southern China. Singapore-based Penstone Power Ltd, one of the three companies that secured the hydropower deal, has invited Ben Rautin to participate in the project.

By New Straits Times (by Kamarul Yunus)

Property in US cities to fall US$1.46 trillion this year

MIAMI: Property values in U.S. cities are expected to tumble by US$1.46 trillion in 2008 due to the housing downturn and subprime mortgage crisis that has pushed the U.S. economy to the brink of recession.

Cities, where some 85% of the 300 million Americans live, face weak economic growth and tepid job markets from the housing crisis and rising fuel and food prices, according to the study by private analysts Global Insight for the U.S. Conference of Mayors meeting in Miami last Friday.

Just eight months ago, researchers predicted property values would shrink by US$1.2 trillion this year, the study said.

"Metro areas are expected to suffer a US$1.46 trillion decline in property values in 2008," the study said. "The increased loss is a result of even greater deterioration in home markets and prices than anticipated."

The decline is the equivalent of US$21,277 per home, the study said.

By Reuters

Futuristic facade for a hill-top home

A view of the curved titanium roofing from the front. The common corridor on the first floor runs across the entire length of the house behind the louvred windows.

IT takes a lot of courage to do the unprecedented. While it is natural for any land owner to want to build himself a dream home, of whatever shape, style or size it may be, it takes another to put so much emphasis on the roof, which was what this particular owner did.

Holidaying in Barcelona, Spain three years ago, he came across houses with titanium roofs. He was intrigued.

“Titanium is a metal. It has the strength of a space shuttle, depending on the thickness of it. It is durable. And when it rains, there is hardly any sound. It can last 50 years without maintenance and the wonderful part of it is that, it does not leak nor rust.

“While these can be reasons why I opted for it, essentially, I wanted something different and something beautiful,” he says. He says the metal does not heat up the house as it comes with layers of insulating materials.

Located in Country Heights Damansara, a new area straddling Kuala Lumpur and Petaling Jaya, with a Kuala Lumpur address, the two-storey house has a rather futuristic facade.

The burnished sheen of the metal and the way it curves over the first floor gives the house a rather space-ship look.

“It would be expensive to have it as one single sheet. So I had it done in pieces. The fact that it is curved makes it more difficult to do. An installation team from Singapore was despatched over and special machines brought in from Germany,” says the owner who says this is the only house in the country to have a titanium roof.

The house is designed by a Singapore architect (www,lookarchitects.com.sg).

The rest of the house, the front and back and sides, are glass with timber cladding.

Hardwood balau is used for the external cladding and deck while merbau is used internally. While the external focal point of the house is the roof, the internal emphasis is the view.

Because the house is located on one of the three peaks that form Country Heights Damansara, the owner has designed the house to emphasise the Bukit Lanjan forest reserve.

Hence, the use of glass sliding doors throughout the entire length of the house on the ground floor and on the first floor.

All the four rooms upstairs are located on a long line sharing a common balcony on one side and a long common area on the opposite side.

A view of the pool and Bukit Lanjan forest reserve from the guest room. Notice the glass and timber cladding of on the right which form the wall of the house.

The balcony overlooks the forest reserve. A flight of merbau steps from the ground to the first floor separates the master bedroom from the rest of the three rooms, which come with attached bath rooms.

A guest room downstairs also has its sliding doors opening out to the forest reserve and the swimming pool.

Salient points: Double-storey freehold bungalow with pool (RM8.5mil, Christine Chua, 012-314- 2864, Bungalow World 03-7957-0017,
www.bungalowworld.com.my) Land area: 10,000 sq ft Built-up: 6,500 sq ft Five bedrooms ensuite

By The Star (by Thean Lee Cheng)

Shining Bright - How fancy can hotels go? St Regis arrives in KL

Ko and Chua indicating the location of St Regis hotel on a scaled model of KL Sentral.

Hotels to some might seem like just like a place to spend the night in. To others, it’s an experience. And then there is St Regis hotels. This legendary hotel is said to house some of the finest politicians, CEOs and even royalty.

“You can expect bespoke service in St Regis,” says Miguel Ko, president of Starwood Hotel and Resorts, Asia-Pacific, which owns St Regis.

Bespoke means tailor-made, customised to their guests needs.

“The St Regis experience is something that our guests keep coming back for. Our butler service is impeccable and they are attentive. If you’ve stayed in any St Regis hotel around the world, you can expect your favourite chocolates in your room that’s been turned down just the way you like it. We have a system that ensures our guest’s needs are all recorded down so you don’t need to say it twice. Our butlers have also been trained to take note of guests preferences. That is luxury,” says Ko.

St Regis is the latest luxury hotel that will make its presence felt in Kuala Lumpur. The hotel will occupy the property owned by ONE IFC Sdn Bhd and this newly constructed property will include 200 guest rooms and 200 whole-ownership St Regis branded residences. It is slated to open its doors in 2014. This 6-star hotel is situated in the prestigious central hub of KL Sentral.

“This affirms Kuala Lumpur’s and Malaysia’s sustained growth and potential, and is further proof that KL is ready to welcome a brand whose reputation for luxury is incomparable,” says Carmen Chua, CEO of ONE IFC during the signing ceremony with Starwood.

Starwood is the world’s leading hotel group with almost 900 properties in 100 countries. Also in Starwood Hotels and Resorts’ extensive list of hotels is The Le Meridien, Westin and The Sheraton, just to name a few.

Unmistakable Quality

“The St Regis Kuala Lumpur will have only 200 guest rooms and it’s exclusive and quiet. Guests can slip in and out, you have complete privacy,” says Ko. That’s the reason why St Regis in other countries boasts a guest list of important people like prime ministers, CEOs, politicians and the list goes on. “Our butlers are discreet and you wouldn’t even know they’re there,” explains Ko.

“It doesn’t matter what these people are here for. Whether it’s for leisure or government mission, it’s not important WHY they’re here, but rather for WHAT they are,” says Ko. “Guests will come back for the comfort and privacy. It’s not like when you walk into the lobby and everyone knows you’re here,” adds Carmen.

“We pride ourselves in being a 6-star hotel. Six-star meaning that we are an ultra luxury brand. Five-star hotels are everywhere, but being a 6-star hotel means that you have to outdo the rest.” he says. “St Regis is all about understated elegance and the attention to detail of our service is something to experience to understand.”

“St Regis is also in Singapore and Beijing, and in some countries they are still under construction. Once St Regis Kuala Lumpur opens in five years time, guest will be able to get the St Regis experience in nearly every country in South East Asia.” says Ko. “The rooms will be bigger than the usual 5-star hotels and the restaurants within the hotel will be discreet and secluded. We want our guests to enjoy their stay to the fullest.”

“As for the residency, it is targeted at the high-end condo dwellers who want the comforts of home but the facilities of a hotel. These properties have the St Regis brand, which is internationally recognised. This attracts foreign buyers who have the confidence in the St Regis brand. This is definitely a smart investment,” he says. The whole ownership units are sold as strata title land and comes unfurnished. “We have showrooms to give our potential clients an idea of how the unit will look like and they can advice their own interior designer,” Ko adds.

“The rooms in St Regis Beijing have been fully booked for the Olympics since 2006. The guest list in the hotel is impressive as St Regis Beijing is without a doubt the most famous hotel in town. You can ask anyone and they will know where the St Regis is. It is the choice hotel for any visiting CEOs, politicians and even prime ministers or presidents,” says Ko.

Location Selection

“We were pleasantly surprised when we found out that the Le Meridien (also owned by Starwood and located at KL Sentral) outperformed most hotels in KL city central. I guess once you think about the 45 minute jams getting out of the city, you’ll reconsider staying elsewhere,” says Ko.

“We believe that KL Sentral will be the future hub for business travellers. We foresee 200 million visitors coming by KL Sentral and that’s just amazing,” Carmen says. “Roads and infrastructure will also be upgraded around the area to ease the traffic coming in from Jalan Travers.”

“To us, location has always been an important point. When we received reports about Le Meridien’s uptrend, we knew we have the place for our high end hotel,” says Ko.

The KL Sentral transit hub features an integrated network of six railway that connects north to south (from Thailand to Singapore) – the KLIA Express Rail Link, the LRT, the KLIA Transit, KTM Intercity, KTM Komuter, Rapid KL and KL Monorail services. KL Sentral is also Malaysia’s only centrally located Multimedia Super Corridor cybercentre. Benefits include tax advantages, having an independent broadband gateway as well as an independent power supply.

“With world famous New York-based Skidmore, Owings and Merrill architecture firm (who designed the Freedom Tower in New York and Burj Dubai in UAE) designing the building, we are assured that their expertise will match our shared vision of building a state-of-the-art tower in creating a new icon to complement the Petronas Twin Towers,” says Carmen. “SOM is one of the top three architectural firms in the world,” she adds.

How it all started

“Carmen and I were introduced by a mutual friend and business partner and we discovered we both share the same ideals,” says Ko, when asked about how the project started. “And when we decided to work together in bringing St Regis to Malaysia, we spent a year getting to know each other,” he adds.

ONE IFC is 60% owned by CMY Capital Sdn Bhd, 30% by Malaysian Resources Corp Bhd and 10% by Jitra Perkasa Sdn Bhd. “ONE IFC’s commitment to the project also represents its confidence in Malaysia’s economy despite the current climate of uncertainty, inflation and rising costs,” says Carmen. The construction of the hotel, residences and office tower development is expected to start in 2010.

World famous hotel brand

The St Regis hotel has always been the choice for the discerning guests. From their resorts in exotic locations like the Bora Bora Resort or the Monarch Beach Resort to ski resorts in Aspen, you can expect nothing but the best.

St Regis is founded by John Jacob Astor with the landmark St Regis Hotel in New York over a century ago. Since then it was known for its unrivalled dimension of luxury, bespoke service and refined elegance at the best addresses in the world.

With new properties coming up in Atlanta- Buckhead, Baha Mar, The Bahamas, Bahia Beach, Puerto Rico, Bal Harbour and Deer Crest in North America; Buenos Aires, Costa Rica, Mexico City and Punta Mita in Latin America and plans to open properties in Bali, Bangkok, Jakarta, Lhasa, Macau, Osaka and Tianjin. St Regis will also make its presence felt in Cairo, Doha and Bahrain.

By The Star (by Lum Yi Hwa)

Sime projects RM2bil sales

KUALA LUMPUR: Sime Darby Bhd’s property division expects to rake in RM2bil in sales in the next 12 months following the launch of projects in nine townships.

Sime Darby Property Bhd managing director Datuk Abd Wahab Maskan said the total gross development value of the projects was about RM10bil.

Datuk Abd Wahab Maskan (left) with Sime Darby chairman supervisory committee (property division) Datuk Mohamed Sulaiman at the launch of Parade of Homes.

“We expect the uptake of these properties to be good because they are located in mature townships with good infrastructure,” he told a media briefing on Sime Darby Property’s Parade of Homes yesterday.

Abd Wahab said it might take about five years to sell all the properties, comprising semi-detached houses, bungalows, condominiums and shop-lots.The nine townships are Bukit Jelutong, Denai Alam, Putra Heights, Ara Damansara, USJ Heights & Pinggiran USJ, UEP Subang Jaya and Subang Jaya, Bandar Bukit Raja, Melawati and Nilai, Negri Sembilan.

On rising raw material costs, Abd Wahab said the property division would find ways to mitigate the impact.

“While the rising costs is a concern, it will not derail any of our projects. We have the size and economies of scale to ride through the difficult times in the industry,” he said.

Sime Darby Property will also not discount the possibility of acquiring quality assets.

“We are always on the lookout, but it’s not in our immediate plans,” Abd Wahab said, adding that Sime Darby Property still had 3,400 acres of prime land for development in the Klang Valley.

By The Star

Sime targets RM2b sales in major townships

SIME Darby Property Bhd plans to sell RM2 billion worth of new houses and shops in its high-demand townships in the Klang Valley this year, its chief said.

It has a five-year plan to launch up to RM10 billion worth of properties in nine townships where development is ongoing, managing director Datuk Abd Wahab Maskan said.

He said the company has no plans to delay property launches now despite the surging construction costs and a potentially slower consumer demand. Instead, its launches this year will be mainly in the established townships that are well located and are in high demand, he said.

The bulk of the 2,000-odd new units will be launched within the high-end residential project of Bukit Jelutong and Ara Damansara, the mid-range Denai Alam, as well as the USJ Heights project in Subang Jaya.

"There are some wait-and-see attitudes. The market is not going to be as strong as what we thought six months or a year ago," he said.

"(But) our products are still in demand. These products are launched in the matured markets and they are more resilient regardless of the economic conditions," Wahab said in a media briefing in Kuala Lumpur.

The developer yesterday started a 10-day showcase to promote the nine townships that it has been developing over the decades. Potential buyers get fee waivers and rebate for purchases during the promotion period.

About 80 per cent of Sime Darby Property's sales is generated from Malaysia. It also has projects in Singapore, Indonesia, the Philippines, Vietnam, China, Australia and the UK.

In Malaysia, the company still has 3,480ha immediately available for development over the next five years, Wahab said. The bulk of this, or 1,550ha, is in the Klang Valley and Selangor.

It does not need to actively scout for land in Malaysia as the group has vast plantation lands that can be turned into property developments.

By New Straits Times (by Chong Pooi Koon)

Malaysia likely to give growth projects priority

The government's review of infrastructure and mega-projects under the Ninth Malaysia Plan (9MP) could see several projects put on hold, scaled down, or extended over a longer period, industry sources said.

Projects will likely be prioritised based on necessity, cost, and urgency.

Amid soaring costs and higher fuel prices, projects that would have the most benefits for the people would jump to the front line, they said.

"The government is more concerned with rising food prices. So they will go for top priority projects which can generate growth, instead of mega developments. While this is a concern among industry players, we hope to be given a slice of the smaller cake," said one official of a public listed construction firm.

The government had announced that 880 projects worth about RM15 billion will be implemented under the 9MP.

So far, projects that have been awarded under the 9MP include East Coast Expressway Phase 2 comprising packages 10 and 12 (worth RM1.5 billion), Kota Kinabalu Airport upgrade works (RM750 million), Second Penang Bridge (worth RM3 billion) electrified double-tracking projects from Ipoh-Padang Besar and Seremban-Gemas (RM16 billion collectively), and Langat 2 Water Treatment Plant (RM4 billion).

Projects that have been shortlisted but not yet awarded, meanwhile, include the Penang Outer Ring Road (PORR), Penang Monorail, Johor Baru Monorail, West Coast Expressway, flood mitigation, Pahang-Selangor Raw Water Transfer Project, Klang Valley LRT extension, and Selangor water treatment and distribution, worth RM28 billion collectively.

One industry player said he believes the government may postpone flood mitigation and building of highways in Peninsular Malaysia, while giving the go- ahead for road and bridge construction works in Sabah and Sarawak.

Some research houses, meanwhile, believe that PORR may be shelved indefinitely while the Gemas-Johor Baru double-tracking project could be postponed to 2009.

"Under the Eighth Malaysia Plan (8MP), 30 to 35 per cent of the projects were delayed and carried forward to the 9MP. We are expecting the same for the 9MP, looking at the current political scenario and rising costs.

"We believe the Ipoh-Padang Besar double tracks awarded to Gamuda-MMC could be prolonged from five to 10 years, and there may be some hitches in the Selangor water projects," an analyst said.

The flow of project awards will also likely slow down for the remainder of 2008, which could put downside pressure on the stock market.

"Most people have already factored in the news (project delays). The constraint now is that the government has a budget deficit level to meet and that level is 3.1 per cent of the gross domestic product in 2008. With this constraint in mind, they can't simply go around spending," said one analyst.

The analyst said there is talk that the Penang Monorail project may be re-tendered and the development plan restructured under a build, operate and transfer concept or private finance initiative offering the company the concession.

Another industry player said the government is expected to concentrate on projects which could benefit the public such as building new roads and improving the public transport system.

"We believe the government may go ahead with the Klang Valley LRT extension. They may shorten the plan," he said.

The LRT extension includes an extension of the Kelana Jaya LRT line to Klang, and a new outer-ring line serving the outskirts of the Klang Valley.

By New Straits Times (by Sharen Kaur)

LCL sees Mideast as key market for long term

BANGI: LCL Corp Bhd will focus on the Middle East as its key market for the long term as the oil-rich region is expected to see continued growth in construction activities.

The company also planned to venture into North Africa, group managing director Low Chin Meng said after its AGM and EGM yesterday.

“We are positive that growth in the MENA (Middle East and North Africa) region would persist in the next three to five years, thanks to its booming construction and oil and gas (O&G) sectors,” he said.

Currently, LCL has a presence in India, Kazakhstan, Qatar, Dubai, Singapore and Brunei.

“We expect overseas market to contribute 80% to group revenue for the financial year ending Dec 31, (FY08),” said Low.

LCL is bidding for local and foreign interior fit-out (IFO) jobs worth RM5bil for hotels, complexes, serviced apartments and high-end condominiums.

“We are confident of securing some of the jobs based on our historical success rate of 15%,” said Low.

Shareholders at the EGM approved the company's proposed share split and rights issue.

For the first quarter ended March 31, LCL saw its net profit and revenue more than doubled to RM10.1mil and RM103.25mil respectively.

This is compared with RM4.13mil and RM50.15mil achieved in the previous corresponding period.

“We will continue to pay a 10% dividend per share this year as in the past four years,” said Low.

By The Star

TSR Capital confident of securing more jobs

TSR Capital Bhd is riding on potential property developments worth over RM5 billion and another RM800 million of already secured construction orders to bolster earnings, its top executives say.

The company expects earnings to swell further with some contracts from the RM1.2 billion of tenders it has submitted, chairman Datuk Yaakob Mohamad and managing director Datuk Tengku Mustapha Tengku Mohamed said.


Tengku Mustapha: Expects profit to improve as material prices stabilise

TSR has bid for open and selected jobs in infrastructure works, hospitals, training colleges, hostels and other building works, Yaakob said after its shareholders' meeting in Bandar Sri Damansara yesterday.

The company is confident of securing at least one fifth of the tenders this year.

"In the past, we have been able to achieve a success rate of about 20 per cent of the tenders submitted," Yaakob said.

TSR's current construction jobs worth RM850 million will keep it busy for the next three years. The biggest contract is the RM251 million design and development of Penang prison in Jawi.

TSR plans to expand its property development with its 273ha landbank in Selangor, Negri Sembilan and Kedah.

The biggest job it is embarking on is a RM3.3 billion development of a medical city on a 148ha site in Negri Sembilan.

Tengku Mustapha said the project will be jointly undertaken with TH Properties Sdn Bhd on a 70:30 basis. The Letter of Intent is expected to be secured by year-end.

TSR is to develop a similar medical city for International Islamic University of Malaysia on 66ha land at the same area in Negri Sembilan. Development value is estimated at RM1.7 billion.

TSR's revenue grew 58 per cent to RM233 million in its fiscal year ended December 2007, from RM147.8 million in 2006. Its pre-tax profit, however, eased slightly to RM10 million from RM10.7 million previously, due to higher material costs.

Tengku Mustapha expects profitability to improve as prices of materials such as steel, cement, fuel and other building materials stabilise.

The company is also reviewing its prices with clients, he added.

By New Straits Times (by Zuraimi Abdullah)

Tune to spend RM2b on 100 new hotels

TUNE Hotels.com Group has revealed an ambitious plan to invest RM2 billion in developing 100 no-frills hotels locally and regionally within the next three years.

With two hotels in operation now, the group plans to build half of the hotels from scratch, said its chief executive officer Mark Lankester.


"Our locations overseas include Manila, Clark, Bangkok, Pattaya and Phuket" Mark Lankester chief executive officer TUNE Hotels.com

It has identified locations in Ipoh, Penang, Johor Baru and Miri to open hotels, while regional locations include the Philippines, Thailand and Indonesia.

"Our locations overseas include Manila, Clark, Bangkok, Pattaya and Phuket," Lankester said after the groundbreaking ceremony of its third hotel located near the Low Cost Carrier Terminal (LCCT) in Sepang yesterday.

"We will be starting the construction of two additional hotels concurrently next month in Kuta and Legian, Bali," said Lankester.

The investment per building is between RM16 million and RM20 million.

He said the group is on track to meet its 40 locations acquired and under development by year-end, amid rising cost of raw materials.

"We have to be much better in our marketing and filling up our hotel is the key goal. Then, the economics will take care of the rest," he said.

Founder and director of Tune Hotels.com Group Datuk Seri Tony Fernandes said room rates will remain low and possibly reduced further when more hotels are opened.

"As you get the volume, the cost will be tied to a larger number of properties," he added.

The new Tune Hotel.com LCCT, with an investment value of RM20 million, is expected to tap into the potential 20 million passengers flying through LCCT.

Fernandes said the location had the potential to house two to three Tune Hotels especially since AirAsia was still growing.

"This hotel will be ready for those passengers staying overnight and catching the morning flight out," he said.

Tune Hotels.com LCCT, due to open early 2009, will have 222 rooms with in-house food and beverage retail outlets such as Gloria Jeans Coffee, 7-Eleven and Nelson's Cafe.

Malaysia Airports Holdings Bhd has leased the land to Tune Hotels.com for 30 years.

This will be the third hotel, following the launch of Tune Hotel.com's flagship hotel in Kuala Lumpur and another in Kota Kinabalu.

Hotels in Penang, Kuching and Bali are likely to be operational by year-end.

By New Straits Times (by Jeeva Arulampalam)

Tune Hotels set to open at LCCT

Datuk Azmi Murad (left) and group chairman Datuk Seri Kalimullah Hassan unveil an artist’s impression of the new hotel. — Bernama

SEPANG: Tune Hotels Regional Services Sdn Bhd has invested RM20mil in its new Tune Hotels.com LCCT, which is sited in the vicinity of the Low-Cost Carrier Terminal (LCCT).

According to founder and director Datuk Seri Tony Fernandes, the hotel is targeted to open in early 2009 and would cater to about 20 million passengers a year at the LCCT.

“The group aims to have 100 hotels up and running within three years and these would include sites outside Malaysia, such as Kuta and Legian in Bali, as well as locations in the Philippines and Thailand,” he told reporters after the ground-breaking ceremony for Tune Hotels.com LCCT yesterday.

“In Manila, we have found a site behind the US embassy and there is also another site that we are finalising,” chief executive officer Mark Lancaster said. “In Thailand, there will be a Tune Hotels.com each in Bangkok, Pattaya and possibly in the next week or so in Phuket.”

The Tune Hotels.com flagship hotel in Kuala Lumpur was launched in May 2007, followed by Tune Hotels.com 1Borneo Kota Kinabalu in April this year.

Other hotels under the Tune.Hotels.com chain in Malaysia will be launched in Ipoh, Penang, Johor Baru and Miri.

The new six-floor hotel at the LCCT would have 222 rooms, with the ground floor housing the lobby and food and beverage retail outlets.

Meanwhile, Malaysia Airports Holdings Bhd senior operations general manager Datuk Azmi Murad said there was still “positive growth' in terms of passenger movements at the LCCT and KL International Airport.

He said the overall passenger traffic grew 78% in April/May 2008 compared with a year earlier, while traffic at the LCCT was up by 30%.

“For the third quarter, people have planned their travel. If there is a slowdown, it could be in the fourth quarter due to fare increases,” he said.

By The Star (by Eileen Hee)

Builders urge govt to set up steel bar stockpile

MASTER Builders Association of Malaysia (MBAM) recommends that the government allocate RM1 billion to stock up on 350,000 tonnes of steel bars, to ease the current supply chain bottleneck in the construction industry.

MBAM, which represents 600 contractors in the country, estimates that the country urgently needs 350,000 tonnes of steel bars in the next three months.

"We're facing a supply chain bottleneck now because government projects were rolled out irregularly.


Wong: Sudden increase in demand is causing artificial shortages in the market

"The sudden increase in demand for steel bars, cement and heavy machinery is causing artificial shortages in the market," said MBAM president Patrick Wong.

Last week, Malaysia's five major steel millers, in a statement, said they are supplying steel bars at between RM3,550 and RM3,750 per tonne, cheaper than in Singapore, Thailand and Indonesia.

"In de-bottlenecking the supply chain in the construction industry, we appeal to all steel millers to (bypass distributors and) directly supply the steel bars to contractors who are capable and willing to buy for cash," he told reporters at a press conference in Kuala Lumpur yesterday.

"We're also recommending that the government, via the National Price Council, Syarikat Perumahan Negara or even Mavtrac Sdn Bhd, to set up a stockpile of 350,000 tonnes of steel bars now," he said.

"If there are no immediate positive measures taken, we can see further delay in infrastructure projects," he said.

Wong said the construction of affordable housing, including low- and medium-cost units, may no longer be feasible.

"Each low-cost unit requires 1.8 tonnes of steel bars. If, by the end of the year, steel bars escalate to RM5,000 per tonne, the ceiling price of RM45,000 on a low-cost unit will no longer reflect its real economic value," he said.

Wong reiterated that the association's appeal to the government is to incorporate price fluctuation clause in all government contracts.

"Right now, only the Public Works Department's Form 203 provides for price fluctuation clause. All other government jobs do not allow for cost pass-through," he added.

By New Straits Times (by Ooi Tee Ching)