KUALA LUMPUR: Lembaga Tabung Haji’s property arm TH Properties Sdn Bhd and Primanora Sdn Bhd, will provide healthcare services in its flagship project at Bandar Enstek in Negri Sembilan for the aged and elderly.
“Besides healthcare services, the first phase of the development, Resort Living@enstek, will also offer various social, cultural and educational activities for residents,” TH Properties’ chief executive Zaharuddin Saidon told reporters after signing a memorandum of understanding here yesterday.
He added that the development would be on a 12ha land in Bandar Enstek, with a gross development value (GDV) of RM30 million. Construction will start in June 2009 and is scheduled for completion within two years. Bandar Enstek is a RM9.2 billion township which will spread over 2,000ha when fully completed in 2025.
“There will be about 60 units of bungalows in the area, which cost RM500,000 to RM1 million per unit. We are targeting the elderly of 60 years old and above,” Zaharuddin said, adding that it was also looking to provide similar services to the elderly in Ipoh and Penang.
Besides the Resort Living@enstek, the property developer is also eyeing suitable locations in Bandar Enstek and Kuala Lumpur to develop its second healthcare project — Women & Children’s Hospital — with a GDV of RM150 million.
“The demand for the hospital will be in Kuala Lumpur and a decision will be made in the next couple of months,” he said.
By The EDGE Malaysia
Wednesday, November 19, 2008
TH Properties to build township for the elderly
TH Properties Sdn Bhd has teamed up with PrimaNora Sdn Bhd to develop a RM30 million resort-style township in Bandar Enstek for the aged and elderly.
TH Properties chief executive officer, Zaharuddin Saidon, said the 12-hectare development was expected to commerce in June next year and would be completed two years later.
“The township, called Resort Living@enstek, is targeted at those 60 years and above.
“It will comprise 60 bungalows priced between RM500,000 and RM1 million each,” he said after signing the memorandum of understanding (MOU) with PrimaNora in Kuala Lumpur yesterday.
Zaharuddin said under the MOU both companies would also collaborate to develop a women and children’s hospital, medical wellness centre, specialist healthcare facilities and comprehensive health Hajj programme, focusing on providing comprehensive and holistic healthcare.
“We are currently studying the strategic location for the hospital (for women and children). It might be within the Bandar Enstek or somewhere else in Kuala Lumpur,” he said.
He said the companies also planned to develop the same type of township in Penang and Ipoh.
“We have identified a few locations. We will duplicate Resort Living@enstek and build the township, maybe in Penang and Ipoh,” he said.
Asked if this was the right time to introduce new development due to the current global crisis, he said: “The health industry is recession-proof. People still get old. They have to prepare themselves.”
Zaharuddin said the company was fortunate not to rely on one product.
“For other developers who rely on one product, especially the high-end, investors might hesitate because of the current financial crisis. So they will be affected.
“But for us we have different products. So if the high-end have problems, we will go for other products such as middle- and lower-end.
“People still need houses. So we will identify the products the market wants,” he said.
By Bernama
TH Properties chief executive officer, Zaharuddin Saidon, said the 12-hectare development was expected to commerce in June next year and would be completed two years later.
“The township, called Resort Living@enstek, is targeted at those 60 years and above.
“It will comprise 60 bungalows priced between RM500,000 and RM1 million each,” he said after signing the memorandum of understanding (MOU) with PrimaNora in Kuala Lumpur yesterday.
Zaharuddin said under the MOU both companies would also collaborate to develop a women and children’s hospital, medical wellness centre, specialist healthcare facilities and comprehensive health Hajj programme, focusing on providing comprehensive and holistic healthcare.
“We are currently studying the strategic location for the hospital (for women and children). It might be within the Bandar Enstek or somewhere else in Kuala Lumpur,” he said.
He said the companies also planned to develop the same type of township in Penang and Ipoh.
“We have identified a few locations. We will duplicate Resort Living@enstek and build the township, maybe in Penang and Ipoh,” he said.
Asked if this was the right time to introduce new development due to the current global crisis, he said: “The health industry is recession-proof. People still get old. They have to prepare themselves.”
Zaharuddin said the company was fortunate not to rely on one product.
“For other developers who rely on one product, especially the high-end, investors might hesitate because of the current financial crisis. So they will be affected.
“But for us we have different products. So if the high-end have problems, we will go for other products such as middle- and lower-end.
“People still need houses. So we will identify the products the market wants,” he said.
By Bernama
Urusharta draws foreign buyers
KUALA LUMPUR: Urusharta Cemerlang Sdn Bhd believes properties in the country are still attractive especially among foreigners, says chairman Tan Sri Zainol Mahmood.
“With strategic location and high quality of materials used, there should be no reason why foreigners don’t want to buy properties in Malaysia,” he said yesterday after the topping-up ceremony for Pavilion Residences.
He added that foreigners from about 18 countries made up half of the buyers for the 368-unit high-end condominium project, which was sold out last month.
The units were priced from RM1.8mil to RM8mil.
Despite the current global economic slowdown, the international community seemed aware of the future of Malaysia and were still confident on investing in the country, said Zainol.
Comprising two towers, the project is located at Pavilion Kuala Lumpur in the Golden Triangle.
Zainol said although the property sector was facing a slowdown, developers shouldn’t just stand still but must think positively on how to generate business activities in the country.
He believed the company’s decision to complete the development of Pavilion Residences would help the industry and the country by creating jobs.
“If we stop the development, it would mean no jobs for people. Doing so would just help create a recession,” he said.
Pavilion Residences is scheduled for completion early next year with gross development value of RM610mil.
By The Star
“With strategic location and high quality of materials used, there should be no reason why foreigners don’t want to buy properties in Malaysia,” he said yesterday after the topping-up ceremony for Pavilion Residences.
He added that foreigners from about 18 countries made up half of the buyers for the 368-unit high-end condominium project, which was sold out last month.
The units were priced from RM1.8mil to RM8mil.
Despite the current global economic slowdown, the international community seemed aware of the future of Malaysia and were still confident on investing in the country, said Zainol.
Comprising two towers, the project is located at Pavilion Kuala Lumpur in the Golden Triangle.
Zainol said although the property sector was facing a slowdown, developers shouldn’t just stand still but must think positively on how to generate business activities in the country.
He believed the company’s decision to complete the development of Pavilion Residences would help the industry and the country by creating jobs.
“If we stop the development, it would mean no jobs for people. Doing so would just help create a recession,” he said.
Pavilion Residences is scheduled for completion early next year with gross development value of RM610mil.
By The Star
YTL Corp hunting for acquisitions
YTL Corp, Malaysia’s biggest builder, said it’s got a “war chest” of about RM12 billion (US$3 billion) and is looking for acquisitions as asset values worldwide fall.
“We have an army of people combing through deals,” managing director Tan Sri Francis Yeoh said in an interview with Bloomberg Television today. “There are very interesting assets globally that are ready.”
“It’s the best time to buy assets which are at distressed levels,” said Jason Chong, who helps oversee US$1.6 billion of securities, including YTL shares, as chief investment officer at UOB-OSK Asset Management in Kuala Lumpur. “In times like this, cash-rich companies like YTL can afford to cherry-pick.”
YTL, based in Kuala Lumpur, has expanded its cement, power and water businesses by buying businesses in China, Indonesia, Australia and the UK, where the Malaysian company owns Wessex Water.
Yeoh said today YTL could borrow six or seven times more than the company’s available cash for larger takeover.
YTL is assessing businesses in the property, power-generation and water industries, Yeoh said. Still, the company will maintain a “steady dividend flow,” he said.
Profit at YTL in the year ended June 2008 rose 9.8 per cent to RM769.8 million from a year earlier, helped by higher earnings at the utility and cement divisions.
By Bloomberg
“We have an army of people combing through deals,” managing director Tan Sri Francis Yeoh said in an interview with Bloomberg Television today. “There are very interesting assets globally that are ready.”
“It’s the best time to buy assets which are at distressed levels,” said Jason Chong, who helps oversee US$1.6 billion of securities, including YTL shares, as chief investment officer at UOB-OSK Asset Management in Kuala Lumpur. “In times like this, cash-rich companies like YTL can afford to cherry-pick.”
YTL, based in Kuala Lumpur, has expanded its cement, power and water businesses by buying businesses in China, Indonesia, Australia and the UK, where the Malaysian company owns Wessex Water.
Yeoh said today YTL could borrow six or seven times more than the company’s available cash for larger takeover.
YTL is assessing businesses in the property, power-generation and water industries, Yeoh said. Still, the company will maintain a “steady dividend flow,” he said.
Profit at YTL in the year ended June 2008 rose 9.8 per cent to RM769.8 million from a year earlier, helped by higher earnings at the utility and cement divisions.
By Bloomberg
UEM Land to spend bulk of loan on Nusajaya
UEM Land Holdings Bhd, which was listed on the stock market yesterday, plans to use the bulk of a bank loan, or RM500 million, to develop its Nusajaya township in Johor next year, officials said.
The property developer is in talks with a group of five local banks for a RM850 million Islamic loan, managing director Wan Abdullah Wan Ibrahim said.
It hopes to close the deal by the end of the first quarter of 2009.
This would double UEM Land's total debt over equity ratio to 60 per cent, which is on par with the industry, he said.
UEM Land also plans to raise another RM400 million from a share sale later, when markets improve.
The company, which was listed on the main board in place of its parent UEM World following a group restructuring, made a commendable debut despite the overall weak market yesterday.
It opened five sen lower than its reference price of 55 sen, before moving to make gains
It ended the day 2.5 sen higher to 57.5 sen, off an intra-day peak of 80 sen. It was the day's most actively traded counter, with 47.8 million shares changing hands.
"We were prepared for (an opening) of below 50 sen this morning," chairman Tan Sri Ahmad Tajuddin Ali remarked after the opening bell. "This shows people want to get hold of UEM shares," he added.
Research house Hwang-DBS Vickers Research had earlier pegged the company's fair value at 45 sen.
UEM Land is 77.1 per cent owned by the UEM Group and 22.9 per cent by the public.
Wan Abdullah said the company had managed to get a time extension by the stock market regulator to meet the required public shareholding spread of 25 per cent.
Based on its reference price, it had a market capitalisation of RM1.3 billion, making it the country's fifth largest listed property developer, according to HwangDBS.
By Business Times (by Adeline Paul Raj)
The property developer is in talks with a group of five local banks for a RM850 million Islamic loan, managing director Wan Abdullah Wan Ibrahim said.
It hopes to close the deal by the end of the first quarter of 2009.
This would double UEM Land's total debt over equity ratio to 60 per cent, which is on par with the industry, he said.
UEM Land also plans to raise another RM400 million from a share sale later, when markets improve.
The company, which was listed on the main board in place of its parent UEM World following a group restructuring, made a commendable debut despite the overall weak market yesterday.
It opened five sen lower than its reference price of 55 sen, before moving to make gains
It ended the day 2.5 sen higher to 57.5 sen, off an intra-day peak of 80 sen. It was the day's most actively traded counter, with 47.8 million shares changing hands.
"We were prepared for (an opening) of below 50 sen this morning," chairman Tan Sri Ahmad Tajuddin Ali remarked after the opening bell. "This shows people want to get hold of UEM shares," he added.
Research house Hwang-DBS Vickers Research had earlier pegged the company's fair value at 45 sen.
UEM Land is 77.1 per cent owned by the UEM Group and 22.9 per cent by the public.
Wan Abdullah said the company had managed to get a time extension by the stock market regulator to meet the required public shareholding spread of 25 per cent.
Based on its reference price, it had a market capitalisation of RM1.3 billion, making it the country's fifth largest listed property developer, according to HwangDBS.
By Business Times (by Adeline Paul Raj)
Sands: We have enough money for casino project
LAS VEGAS: Las Vegas Sands Corp has enough money to finish Singapore's first casino without help from the city-state's government or billionaire Kwek Leng Beng after the company raised US$2.1 billion (US$1 = RM3.60), president William Weidner said.
Parts of Marina Bay Sands will open later than the end of 2009, as originally scheduled, on construction snags and an "unprecedented" shortage of raw materials that is now "opening up," he said. "We have all the money required to be able to complete the project."
Las Vegas Sands, controlled by billionaire Sheldon Adelson, halted developments in Macau and Las Vegas to focus on finishing the Singapore project and the casino part of its Bethlehem, Pennsylvania, site. It raised US$2.1 billion last week selling stock and warrants, prompting auditor PricewaterhouseCoopers LLC to yesterday remove a warning that there was "substantial doubt" the company could survive.
“They should be okay for the next 12 months,” said Billy Ng, a Hong-Kong based casino analyst at JPMorgan & Chase Co.
By Bloomberg
Parts of Marina Bay Sands will open later than the end of 2009, as originally scheduled, on construction snags and an "unprecedented" shortage of raw materials that is now "opening up," he said. "We have all the money required to be able to complete the project."
Las Vegas Sands, controlled by billionaire Sheldon Adelson, halted developments in Macau and Las Vegas to focus on finishing the Singapore project and the casino part of its Bethlehem, Pennsylvania, site. It raised US$2.1 billion last week selling stock and warrants, prompting auditor PricewaterhouseCoopers LLC to yesterday remove a warning that there was "substantial doubt" the company could survive.
“They should be okay for the next 12 months,” said Billy Ng, a Hong-Kong based casino analyst at JPMorgan & Chase Co.
By Bloomberg
Hektar REIT sees steady rentals next year
PETALING JAYA: Hektar Real Estate Investment Trust (Hektar REIT) is expecting stable rental incomes next year due to the high occupancy rate of its retail properties as well as a positive trend in its rentals.
The REIT also sees less impact from the economic slowdown as its portfolio consists of the more resilient neigbourhood shopping malls.
Hektar Asset Management Sdn Bhd, the manager of Hektar REIT, said as of the third quarter of this year, the occupancy rate of its retail properties was a solid 96.8%.
“With the majority of our income secured by multi-year leases (three to four years), we will have stable income in 2009,” Hektar Asset executive director and chief financial officer Zalila Mohd Toon told StarBiz.
Zalila said Hektar REIT, which currently owns a property portfolio valued at around RM700mil, remained positive on rental rates.
As at end September, rental rates for 30 new or renewed tenancies in its portfolio had increased by an average of 6%.
Hektar REIT’s retail properties are mainly suburban and neighbourhood malls, which are smaller than regional or city malls.
Its portfolio consists of Subang Parade in Subang, Mahkota Parade in Malacca and Wetex Parade in Muar, Johor.
Hektar REIT now owns more than one million sq ft of space and has over 300 retailers in its portfolio.
The size of neighbourhood malls averages around 500,000 sq ft, or about half the size of so-called regional malls like Suria KLCC.
Zalila said a neighbourhood mall, like Subang Parade, was focused in two ways.
Firstly, it was geared toward serving the surrounding communities living within 15 minutes’ driving distance.
Secondly, the tenant mix was concentrated on basic goods and necessities, and other lifestyle elements, but not luxury items.
“Therefore, we think neighbourhood malls have a more resilient business model than the larger regional malls in difficult times (recession),” Zalila said.
Hektar REIT has also kept track of their retailers’ performance.
“More than 90% of our retailers in Subang and Mahkota Parade so far reported that their sales figures remained intact,” Zalila said.
On the flip side, she said when the economy was booming, the regional malls could do better as they could charge higher rental rates.
“The challenging financial market and stock market, in general, has not affected the operating environment for Hektar REIT’s retail assets at this time,” she said.
Going forward, Zalila said Hektar REIT would continue to focus on completed or nearly completed retail assets, and it would grow its asset base via acquisitions.
According to the Malaysian Valuation and Property Services Department, there is close to 90 million sq ft of shopping centre net lettable area, or space for rent, in Malaysia.
“That means we have a market share of just over 1%,” Zalila said. “We see big opportunities for growth and development, particularly outside of the Klang Valley as almost a quarter of Malaysia’s shopping centre space is in Kuala Lumpur.”
On the impact of the global credit crunch, Zalila said in terms of securing financing in Malaysia, the REIT had long-term relationships with major financiers.
For the financial year ended Sept 30, Hektar REIT generated a total revenue of RM61.98mil, of which RM61.83mil was from rentals.
It also declared a dividend of 2.4 sen per unit.
By The Star (by Rachael Kam)
The REIT also sees less impact from the economic slowdown as its portfolio consists of the more resilient neigbourhood shopping malls.
Hektar Asset Management Sdn Bhd, the manager of Hektar REIT, said as of the third quarter of this year, the occupancy rate of its retail properties was a solid 96.8%.
“With the majority of our income secured by multi-year leases (three to four years), we will have stable income in 2009,” Hektar Asset executive director and chief financial officer Zalila Mohd Toon told StarBiz.
Zalila said Hektar REIT, which currently owns a property portfolio valued at around RM700mil, remained positive on rental rates.
As at end September, rental rates for 30 new or renewed tenancies in its portfolio had increased by an average of 6%.
Hektar REIT’s retail properties are mainly suburban and neighbourhood malls, which are smaller than regional or city malls.
Its portfolio consists of Subang Parade in Subang, Mahkota Parade in Malacca and Wetex Parade in Muar, Johor.
Hektar REIT now owns more than one million sq ft of space and has over 300 retailers in its portfolio.
The size of neighbourhood malls averages around 500,000 sq ft, or about half the size of so-called regional malls like Suria KLCC.
Zalila said a neighbourhood mall, like Subang Parade, was focused in two ways.
Firstly, it was geared toward serving the surrounding communities living within 15 minutes’ driving distance.
Secondly, the tenant mix was concentrated on basic goods and necessities, and other lifestyle elements, but not luxury items.
“Therefore, we think neighbourhood malls have a more resilient business model than the larger regional malls in difficult times (recession),” Zalila said.
Hektar REIT has also kept track of their retailers’ performance.
“More than 90% of our retailers in Subang and Mahkota Parade so far reported that their sales figures remained intact,” Zalila said.
On the flip side, she said when the economy was booming, the regional malls could do better as they could charge higher rental rates.
“The challenging financial market and stock market, in general, has not affected the operating environment for Hektar REIT’s retail assets at this time,” she said.
Going forward, Zalila said Hektar REIT would continue to focus on completed or nearly completed retail assets, and it would grow its asset base via acquisitions.
According to the Malaysian Valuation and Property Services Department, there is close to 90 million sq ft of shopping centre net lettable area, or space for rent, in Malaysia.
“That means we have a market share of just over 1%,” Zalila said. “We see big opportunities for growth and development, particularly outside of the Klang Valley as almost a quarter of Malaysia’s shopping centre space is in Kuala Lumpur.”
On the impact of the global credit crunch, Zalila said in terms of securing financing in Malaysia, the REIT had long-term relationships with major financiers.
For the financial year ended Sept 30, Hektar REIT generated a total revenue of RM61.98mil, of which RM61.83mil was from rentals.
It also declared a dividend of 2.4 sen per unit.
By The Star (by Rachael Kam)
Tuesday, November 18, 2008
YTL Corp bullish on Sandy Island project
An artist's impression of YTL Corp's Sandy Island waterfront villas
PETALING JAYA: YTL Corp Bhd is upbeat on its high-end Sandy Island property project at Sentosa Cove in Singapore as response has been encouraging despite the global financial crisis, said YTL Singapore Pte Ltd international real estate director Kemmy Tan.
Tan said the YTL group was positive about the outlook of the property market in Asia.
“We believe there will be continued growth in interest for Asian properties as the economic downturn will also bring about opportunities for investors,” she told StarBiz in an e-mail interview.
A subsidiary of YTL Corp, YTL Singapore manages all YTL group’s projects in Singapore.
Apart from Sandy Island, YTL Corp has two other projects in Singapore – the Lakefront on Sentosa Island and the Westwood Apartments on Orchard Boulevard.
To date, YTL has sold three of the 18 luxurious waterfront villas on Sandy Island.
“We have received interest from local and regional buyers as well as those from as far as the US and Europe,” Tan said, noting that the current buyers were Singaporeans and other nationalities.
So far, there were no takers from Malaysia but “we will definitely be prospecting buyers from Malaysia,” she said.
The 99-year leasehold properties at Sentosa Cove have built-up areas ranging from 7,500 to 9,200 sq ft, with a starting price of S$13.9mil.
Tan said the growing base of the affluent in Singapore motivated the YTL group to venture into the luxury property market there.
“Singapore is well positioned as the regional financial hub and its competitive economy has made it an ideal place for investments,” she said.
“It is also becoming a regional base for multinational corporations and the increase in foreign talent has boosted the demand for luxury property.”
She added that the exclusiveness of the Sentosa Cove area made it particularly appealing to potential buyers.
“Only 2,500 homes can be developed there, of which 400 are landed. It is an exclusive marina community and is the only place in Singapore that allows foreigners to own landed property,” she said.
The Sandy Island villas, each with its unique design, come with a large living area and master bedroom, private pool, boat berth by the waterway, garden and private lift.
By The Star (by Eugene Mahalingan)
IGB investing RM2b in China
GEORGETOWN: IGB Corp Bhd, which operates the “Cititel” hotel chain, plans to invest RM2bil over the next five years to develop “tourist-class” hotels in China under a new brand name.
The group, which considers 3- to 4-star hotels as tourist-class, also has plans for such hotels in other regional cities, from Bangkok to Sydney.
Cititel Hotel Management Sdn Bhd managing director Datuk Eric Lim told StarBiz the group planned to build about 20,000 tourist-class hotel rooms in the third and fourth-tier cities in China.
“These tourist-class hotels would be called Cititel Super-Express Hotel, a new brand name which we are developing,” he said. “There would be at least 1,000 rooms for each of the Cititel Super-Express Hotel to be developed in China.”
Lim said the move would “enable us to tap into the tourist-class market segment in China,” and that the group had “already identified some of the sites for the hotels.”
Over the next three to four years, the IGB group will also draw up plans for similar hotels to be developed in Bangkok, Jakarta, Vietnam, and Sydney.
“In Sydney, the plan is to develop a four-star hotel under the St Giles hotel brand name.
“In Makati, Manila, we are now building the RM150mil St Giles hotel, which should be ready by March 2010,” Lim said.
In Malaysia, the group plans to develop Cititel Express Hotels in Kuching, Kota Kinabalu, Penang, and Ipoh over the next three to four years as well.
“The RM55mil Cititel Express in Kota Kinabalu should be ready in July 2009, while the Cititel Express in Penang is scheduled to be completed by the end of 2010,” Lim said.
The Kota Kinabalu Cititel Express hotel would have 275 rooms and Penang Cititel 550 rooms, he said.
By The Star (by David Tan)
Malaysian builders plan RM11b China development
HUGE DEAL: Tee(left) and Sui showing the documents of agreement while Zaini(second from left) and Gu look on.
A group of Malaysian builders plans to build commercial and residential properties with development value of up to RM11 billion in Shenyang, China.
The consortium signed a memorandum of understanding with the Shenyang Province authorities in Kuala Lumpur yesterday.
A special purpose vehicle, known as Shenyang-Malaysia Development Sdn Bhd (ShenMas), has been formed to undertake the conceptual planning, land acquisition, funding issues and feasibility studies.
The project will take place in the Shenyang Finance and Trade Development Zone (SYFTD).
The proposed development, themed "Modern Islamic Lifestyle", is expected to be completed within five years.
ShenMas executive director Datuk Lim Kim Wah said a definitive agreement was expected to be signed in June next year.
"The project is expected to start by the end of next year. We will form a consortium and Bina Puri will be one of the companies," he told a news conference after the signing between ShenMas and the Administrative Committee of Shenyang Province.
At the signing, ShenMas was represented by its chairman, Senator Tan Sri Tee Hock Seng, and the Shenyang authority, by vice-director of SYFTD administrative committee, Sui Zhong Qing.
The signing was witnessed by the Economic Planning Unit's head of special unit for overseas project, Tan Sri Zaini Omar, and the Chinese embassy's head of mission, Gu Jing Qi.
The project will be developed on a 17.96ha site in one of the most centralised Muslim community living areas in China.
Shenyang is the capital city of Liaoning Province. The province is located south of northeast China, which has about 100,000 Muslims.
Lim, who is the former group chief executive officer (CEO) of Bandar Raya Development Bhd and Magnum Corp Bhd, said that about 30 per cent of the commercial properties will be sold to foreigners and the rest to locals when the development is completed.
Meanwhile, Islamic Banking and Finance Institute Malaysia (IBFIM) managing director and CEO Datuk Dr Adnan Alias said he did not expect any problems in financing the project.
He said the project will use syariah-compliant financing. To date, AmInvestment Bank Group and CIMB Islamic Bank Bhd have issued letters of support for the project.
IBFIM is the syariah adviser to the proposed development.
The project was made possible because of the close rapport between the Kuala Lumpur Chinese Assembly Hall (KLCAH) and the Shenhe district authority in Shenyang.
In August this year, the KLCAH organised a trip to Shenyang, which was led by Adnan.
The Shenhe authority said it chose the Malaysian group instead of groups from Singapore and Hong Kong which had approached the authority to develop the land because of Malaysia's leadership in the international Islamic finance sector.
By Business Times (by Hamisah Hamid)
UEM Land to raise RM850m
UEM Land Holdings Bhd Chairman, Tan Sri Dr Ahmad Tajuddin Ali(left)strikes the gong during the company's listing. Looking on are Managing Director, Wan Abdullah Wan Ibrahim (right)and Director, Md Ali Md Dewal(far left).-AZMAN GHANI / The Star
KUALA LUMPUR: UEM Land Bhd plans to raise RM850mil in bank loans and this would be finalised by March next year.
UEM Land Managing director Wan Abdullah Wan Ibrahim said on Tuesday the RM850mil would be which would be used as working capital to develop Nusajaya.
Speaking to reporters after the listing of the company on the Main Board, he said the company was also looking to undertake a corporate exercise to raise RM400mil.
He expected the borrowings to increase its total debt over equity ratio from 30% now to 60%, which was at par with the industry.
Wan Abdullah added UEM Land was also looking for strategic partners to develop Nusajaya.
UEM Land is the largest landowner in Iskandar Malaysia and it owns 9,564 acres of land in Nusajaya. UEM Land took over the listing status of UEM World Bhd.
By The Star (by KC Lau)
Shenmas to develop RM11b project
KUALA LUMPUR: Shenyang Malaysia Development Sdn Bhd (Shenmas) yesterday signed a memorandum of understanding (MoU) with the Administrative Committee of the Shenyang Finance Development Zone to develop a Muslim community centre cum regional finance centre in Shenyang City, China.
The project, with a gross development value of RM11bil, will start by end 2009 and is expected to be completed within the next five years.
The proposed project is on a mixed basis, comprising both commercial and residential development.
“Shenmas has been given 128 days to undertake a feasibility study with the signing of the MoU.
“I think by June next year everything should be finalised,” said the head of the special unit for overseas projects, Economic Planning Unit of the Prime Minister’s Department, Tan Sri Zaini Omar.
The land is situated within the Shenyang Finance and Trade Development Zone, in Shennhe District, Shenyang City. It will be divided into two parcels, with the first measuring about 64,319 sq m and the second, about 117,488 sq m.
Meanwhile, Islamic Banking and Financing Institute of Malaysia (IBFIM) managing director/chief executive officer Datuk Dr Adnan Alias said it would discuss with potential financiers, the structure of financing for the project.
So far, IBFIM, the financial advisers for the project, had received letters of support from AmInvestment and CIMB Islamic.
Asked whether there would be any problem securing financing due to the current credit crunch, Adnan said: “We don’t foresee much difficulty in raising the needed finance.”
By Bernama
The project, with a gross development value of RM11bil, will start by end 2009 and is expected to be completed within the next five years.
The proposed project is on a mixed basis, comprising both commercial and residential development.
“Shenmas has been given 128 days to undertake a feasibility study with the signing of the MoU.
“I think by June next year everything should be finalised,” said the head of the special unit for overseas projects, Economic Planning Unit of the Prime Minister’s Department, Tan Sri Zaini Omar.
The land is situated within the Shenyang Finance and Trade Development Zone, in Shennhe District, Shenyang City. It will be divided into two parcels, with the first measuring about 64,319 sq m and the second, about 117,488 sq m.
Meanwhile, Islamic Banking and Financing Institute of Malaysia (IBFIM) managing director/chief executive officer Datuk Dr Adnan Alias said it would discuss with potential financiers, the structure of financing for the project.
So far, IBFIM, the financial advisers for the project, had received letters of support from AmInvestment and CIMB Islamic.
Asked whether there would be any problem securing financing due to the current credit crunch, Adnan said: “We don’t foresee much difficulty in raising the needed finance.”
By Bernama
Singapore mulls requests to open casinos in stages
SINGAPORE: Singapore is "carefully considering" proposals by Las Vegas Sands Corp and Genting International plc to open their casino resorts in the city state in "progressive" stages.
Each of the multibillion-dollar projects must still open as an "integrated resort" rather than a "standalone casino", S. Iswaran, senior minister of state for the Trade Ministry, said in Parliament yesterday.
Las Vegas Sands, battling to avoid bankruptcy, suspended construction of casinos in Macau this month to focus on its Singapore project, Marina Bay Sands, scheduled to open at the end of 2009. The company raised US$2.1 billion last week by selling preferred stock and warrants to help finance development projects.
"The Singapore Tourism Board remains in dialogue with Marina Bay Sands and continues to work with them to facilitate the project's completion," Iswaran said. "It would be fair to say that due to the global financial crisis and the slowdown already evident in our tourism sector, there may be some impact on the integrated resorts' business when they open."
By Bloomberg
Each of the multibillion-dollar projects must still open as an "integrated resort" rather than a "standalone casino", S. Iswaran, senior minister of state for the Trade Ministry, said in Parliament yesterday.
Las Vegas Sands, battling to avoid bankruptcy, suspended construction of casinos in Macau this month to focus on its Singapore project, Marina Bay Sands, scheduled to open at the end of 2009. The company raised US$2.1 billion last week by selling preferred stock and warrants to help finance development projects.
"The Singapore Tourism Board remains in dialogue with Marina Bay Sands and continues to work with them to facilitate the project's completion," Iswaran said. "It would be fair to say that due to the global financial crisis and the slowdown already evident in our tourism sector, there may be some impact on the integrated resorts' business when they open."
By Bloomberg
Monday, November 17, 2008
YTL sets example for developers
The Waterville Home at Lake Edge
YTL Land and Development Bhd (YTL Land)’s sweep of both the low and high-rise Residential Development Awards in this year’s International Real Estate Federation (FIABCI) Malaysia Property Award is significant in several ways.
Its winning entries are the low-rise Lake Edge in Puchong, Petaling Jaya and the high-rise, The Maple at Sentul West in Kuala Lumpur.
This is the first time that the same developer has won both the coveted awards since the Residential Development Award was divided into low and high-rise categories in 2006.
Second, this is the third time in three years that YTL Land has won the Residential Development Award. Its Andalucia at Pantai Hillpark, a Spanish-style gated development in Kuala Lumpur won under the high-rise category in 2006.
No other developer has achieved this before. Thus YTL Land has solidly stamped its mark as an innovative developer of high-end, lifestyle residential developments.
Third, YTL Land’s wins will encourage developers to be more daring, creative and innovative in their approach particularly in housing design and concept. This is pertinent as house buyers are very discerning and constantly demanding better products.
The latest achievements bring the total awards that the YTL Group had won in the FIABCI Malaysia Property Award to six. The other four being the Special Award for National Contribution (for Kuala Lumpur Performing Arts Centre or KLPac won in 2007), Master Plan cateogry (Sentul West and Sentul East Master Plan in 2007), Residential Development for high-rise category (Andalucia at Pantai Hillpark in 2006) and Property Man of the Year 2003 won by YTL Group executive chairman Tan Sri Yeoh Tiong Lay.
(Incidentally the Hap Seng Group also won two awards this year. They are for its Hap Seng Star Mercedes-Benz Autohaus, Kuala Lumpur under the Specialised Project Award and its Hap Seng Mercedes-Benz Autohaus Service Centre in Kinrara, Selangor under the Industrial Development Category).
YTL Corp Bhd deputy managing director Datuk Yeoh Seok Kian, who received the two trophies from the Yang di-Pertuan Agong on Wednesday at the FIABCI awards ceremony, said he was “overwhelmed and honoured” to receive the awards.
Both winning developments share a common goal envisioned by YTL Group managing director Tan Sri Francis Yeoh, which is “to focus on developing luxury homes, hotels, marinas, and other real estate, architecturally designed and crafted to a world-class standard of excellence and that blends ecologically with their natural surroundings to preserve the environmental value of the areas.”
YTL Land has engineered urban renewal and enhanced the value of an established neighbourhood that improves people’s quality of life. Like other industry leaders, it shares a common trait: ability to innovate, creating demand, and taking challenges as an opportunity to do better.
So what is so innovative and special about Lake Edge and The Maple?
YTL Land created a niche in a competitive market in Puchong. Instead of building a traditional township, it developed Lake Edge as Puchong’s first gated community featuring lakeside living and fenceless homes where 45% of the land has lovely landscaped features. It boosted Puchong’s image.
Many of its 420 upmarket homes overlook a 12-acre disused mining lake. Density is only 5.5 units per acre or 28 people living on each acre as compared to industry standard of 8 units per acre.
The homes are larger than the usual modern tropical courtyard houses and have unique features. For example the 37 units of 100-ft long Pavilion Terraces each has a reflective pond separating the pavilion from the main section of the house.
The Garden Terraces with extra 20ft length has an outdoor jacuzzi overlooking a 20ft private garden where one can enjoy a private space in one’s own garden. The latest design, 50 Waterville terraced homes has a private pool each.
As for The Maple at Sentul West, (the only residential development in Kuala Lumpur with a 35-acre private park), YTL Land again stressed on having lots of green spaces with 60% of The Maple’s site dedicated to landscaping.
It is a delight strolling in the park that was converted from the former 9-hole Sentul Golf Course.
By The Star
AP Land’s luxury project in Japan
An artist's impression of the Shiki Niseko
ASIA Pacific Land Bhd (AP Land) will be breaking into Japan’s lifestyle property market with the upcoming launch of its maiden project in Niseko, Hokkaido by the year-end.
“Lifestyle projects are in vogue in Japan to cater to the well-heeled and savvy travellers. We are also exploring opportunities in Osaka and Tokyo,” AP Land joint managing director Low Su Ming told StarBiz.
Low Su Meng
AP Land’s resort project, called Shiki Niseko which means four seasons, is a high-end residential development located in Niseko, a popular ski-resort destination.
Low said there were vast opportunities to be tapped in China, Singapore, Hong Kong, Taiwan, Australia and Russia, for the resort-type property developments.
The project will generate an estimated gross development value of US$52mil.
Located in the most sought after part of Niseko-Hirafu, the project is set to make waves with its unique design.
Low said the project will be designed by internationally acclaimed architect DBI.
“Located centrally with good access to the ski lifts, Shiki is built over a 3,082 sq metre planned space with seven storeys of architectural ingenuity,” she said.
There will be a combination of 45 fully furnished two- and three-bedroom apartments, including four penthouses. The units will be priced from US$1mil to US$2mil.
The land, which was acquired for RM18.9mil in February is located near ski lifts and surrounded by restaurants, bars and retail outlets.
AP Land will be the first Malaysian developer to undertake a property development in Niseko.
“The arrival of AP Land will open up Niseko to yet another growing Asian market, especially investors from Singapore and China,” she said.
Singapore is on the verge of engaging in a more vigorous way with the Niseko market while the strengthening of the renminbi against the US dollar in the past several years, had made it much cheaper for the Chinese to buy property in Japan.
“Located on Niseko’s doorstep with direct flights from Shanghai to Chitose, China represents a huge market opportunity,” Low said.
Meanwhile, major ski tour operators in Britain such as Ski Independence, Crystal, Kuoni and Inghams are also featuring Hokkaido in their tour booklets.
Low said the Niseko area would continue to enjoy remarkable growth, adding that investment return had been incredible in recent years, with further capital growth expected.
“Niseko is clearly a world-class ski location, with its real estate still a fraction of the price of comparable international destinations. Summer bookings were up by 100% this season.
Following the influx of holiday makers to the area, Niseko resort operators and the local government are working together to improve its infrastructure and amenities including shuttle bus routes, new shuttle services and high speed internet by next November.
“Niseko’s natural assets differentiate it from the other ski resorts.
“These include an average 13 meters of powder snow in an era of declining snowfalls; true four-season beauty and an unspoiled pure environment.
“Its close proximity to other fast growing Asian capital cities also ensure its rapid growth into a sought after resort destination,” Low pointed out.
By The Star (by Angie Ng)
Property roadshow to attract Japanese investors
MALAYSIA Property Inc (MPI) will kick off its maiden international property roadshow in Tokyo on Dec 6 and 7 to attract Japanese institutional investors to Malaysia’s shores.
According to executive director Yu Kee Su, the two-day roadshow will project the advantages of Malaysia as a property destination.
”In Malaysia, foreigners can buy an unlimited number of property; register the property under their names; and there is no real property gains tax, inheritance and transfer tax. In Japan, these taxes are as high as 60%,” Yu pointed out.
He said with the Japanese yen now at its strongest, “Japanese investors buying properties overseas will get an immediate 20% discount, at the current exchange rate.”
“Japan’s strong yen and the Japanese government’s decision to allow its real estate investment trusts (REITs) to invest overseas will promote greater interest among its investors in Malaysia’s property.”
Yu expressed confidence that the road show would be well-received in spite of the current global economic uncertainties.
The Tokyo road show is the first of the Far East’s property promotions by MPI, a joint public and private sector initiative formed early this year to promote Malaysia’s property internationally, that will also cover Britain and the Middle East in the coming months.
“It is a challenge to the organizers to ensure the success of the Tokyo road show as there has yet to be any Japanese institutional investors in Malaysian properties,” Yu said.
Under Malaysia My Second Home (MM2H) programme, Malaysia is already a top choice among Japanese for long stays and retirement.
“There are already investors from the Middle East and South Korea buying our local property en bloc and off the plan but none yet from Japan. We hope the road show will change that,” Yu said.
MPI is organising the road show with Ohana International Co Ltd as the event manager. It has the support of the Japan Travel Bureau (JBT) and the Long Stay Foundation (LSF), both of which have brought in record numbers of Japanese retirees under MM2H.
Also partnering in the Japan road show entitled “Luxurious Malaysia, long-stay, property and financial fair” at the Mitsui Life Insurance Hall, Otemachi Tokyo, are HSBC Tokyo and Mitsui Life Insurance. Both will send direct mail and emails to their vast clientele of the upcoming road show.
Some 1,000 prospective clients are invited including institutional investors such as Ishin Hotel REIT Management, RETEC Co Ltd, Orix Property, Hotel Management International, ING Property Investment Advisory Co Ltd, Renessance Capital, Star Asset Management, Goldman Sachs Realty Japan, Toyo Securities Co., Ltd, and Shinko Securities Co, Ltd.
Yu said participating developers in the road show would be invited for roundtable discussions and meet Japanese REIT investors and fund managers at private meetings and at business matching sessions during their stay.
Keen Japanese investors can join Ohana’s “Discover Malaysian Property Tour” to visit and familiarize themselves with the local property market assisted by the participating Malaysian developers.
Ishihara Shotaro, a MPI board advisor, said cash-rich Japan was lagging behind the US and Britain in foreign investment.
“The time is right to promote Malaysia’s property in Japan as the stronger yen against other currencies would make living cost and property prices much cheaper,” he said.
By The Star ( by Angie Ng)
According to executive director Yu Kee Su, the two-day roadshow will project the advantages of Malaysia as a property destination.
”In Malaysia, foreigners can buy an unlimited number of property; register the property under their names; and there is no real property gains tax, inheritance and transfer tax. In Japan, these taxes are as high as 60%,” Yu pointed out.
He said with the Japanese yen now at its strongest, “Japanese investors buying properties overseas will get an immediate 20% discount, at the current exchange rate.”
“Japan’s strong yen and the Japanese government’s decision to allow its real estate investment trusts (REITs) to invest overseas will promote greater interest among its investors in Malaysia’s property.”
Yu expressed confidence that the road show would be well-received in spite of the current global economic uncertainties.
The Tokyo road show is the first of the Far East’s property promotions by MPI, a joint public and private sector initiative formed early this year to promote Malaysia’s property internationally, that will also cover Britain and the Middle East in the coming months.
“It is a challenge to the organizers to ensure the success of the Tokyo road show as there has yet to be any Japanese institutional investors in Malaysian properties,” Yu said.
Under Malaysia My Second Home (MM2H) programme, Malaysia is already a top choice among Japanese for long stays and retirement.
“There are already investors from the Middle East and South Korea buying our local property en bloc and off the plan but none yet from Japan. We hope the road show will change that,” Yu said.
MPI is organising the road show with Ohana International Co Ltd as the event manager. It has the support of the Japan Travel Bureau (JBT) and the Long Stay Foundation (LSF), both of which have brought in record numbers of Japanese retirees under MM2H.
Also partnering in the Japan road show entitled “Luxurious Malaysia, long-stay, property and financial fair” at the Mitsui Life Insurance Hall, Otemachi Tokyo, are HSBC Tokyo and Mitsui Life Insurance. Both will send direct mail and emails to their vast clientele of the upcoming road show.
Some 1,000 prospective clients are invited including institutional investors such as Ishin Hotel REIT Management, RETEC Co Ltd, Orix Property, Hotel Management International, ING Property Investment Advisory Co Ltd, Renessance Capital, Star Asset Management, Goldman Sachs Realty Japan, Toyo Securities Co., Ltd, and Shinko Securities Co, Ltd.
Yu said participating developers in the road show would be invited for roundtable discussions and meet Japanese REIT investors and fund managers at private meetings and at business matching sessions during their stay.
Keen Japanese investors can join Ohana’s “Discover Malaysian Property Tour” to visit and familiarize themselves with the local property market assisted by the participating Malaysian developers.
Ishihara Shotaro, a MPI board advisor, said cash-rich Japan was lagging behind the US and Britain in foreign investment.
“The time is right to promote Malaysia’s property in Japan as the stronger yen against other currencies would make living cost and property prices much cheaper,” he said.
By The Star ( by Angie Ng)
i-City comparable to global intelligent cities
While many property developers are lying low and cutting back on launches in the face of a property market slowdown, I-Bhd is still making news for its most important and sole project, i-City intelligent city.
Lim Boon Siong posing with a model of the RM2bil I-City ICT-based commercial development in Shah Alam
The former electrical appliance-maker turned information and communication technology (ICT)-based property developer has in less than two years forged strategic alliances with a slew of high-profile international and local partners.
They included ServCorp, CISCO, DataCraft, Intel, Telekom Malaysia, Kompakar, Universiti Industri Selangor, and lately AmBank, to provide this “No. 1 Technology City in Asia” state-of-the-art infrastructure and facilities from giga-speed fibre-optic network to smart banking services including full e-banking facilities.
“We are very pleased that i-City’s development is gaining momentum and becoming a global intelligent city comparable to other intelligent cities such as Dubai Internet City and Hong Kong Cyberport.
“The first phase of the development, comprising 300,000 sq ft of Cybercentre office suites has been completed in June this year and is ready for occupation,” said I-Bhd deputy chief executive officer Lim Boon Siong, adding that many tenants had moved in and renovating their offices.
Among key tenants are Logica and Redhot Media from the Britain and Unified Communication from Singapore. Kompakar, a leading data centre operator listed in Bursa Malaysia will occupy the 50,000 sq ft Tier-4 Ready data centre by first quarter of 2009.
“Future phases would transform i-City into a fully integrated township, comprising a shopping mall, corporate towers and offices, Cybercentre office suites, innovation centre, hotels and serviced apartments. It will also house multiple high-performance data centres and a digital media hub,” he added.
I-Bhd’s team has worked tirelessly the past three year and gradually seeing their labour bearing fruit.
On Oct 27, i-City was accorded “International Park” status by the Selangor state government, a boost to its image as the choice base for global technology firms.
The Government certified the privately funded project as an MSC Malaysia Cybercentre last May.
Lim said with the MSC Malaysia Cybercentre and International Park status, i-City’s vision to be the world’s foremost global intelligent city has been realised and would draw MSC Malaysia tenants and multinational companies (MNC) to invest in Selangor and Malaysia.
“To-date I-Bhd has invested over RM120mil. Our one-stop Concierge managed by ServCorp has been operational since October.
“Rental of meeting rooms and events hall with super-broadband of 20Mbps is also available. Tenants and visitors now have access to wireless internet with speeds of up to 20Mbps until March 31, 2009 for free,” he said.
Lim said phase 1 of CISCO Connected Real Estate (one of the world’s largest connected real estate) had been put in action such as CCTV to the personal computers and IP telephony which incorporates state-of-the-art teleconferencing system.
“This integrated commercial development is planned for both work and play. Tenants can expect to reduce their operation cost by as much as 30% and they could work, learn and socialise in a safe and secure environment served by remote surveillance, smart car parking, information kiosks, sensory-activated light and sound multimedia displays along a 1,000-foot pedestrian walkway,” he said.
Lim said the project was on track with the next phase of Cybercentre office suites to be ready by Q3 next year.
“What is exciting is that we have received increasing enquiries on purpose-built office buildings from MNCs to consolidate their office space and shared services from this region,” Lim said.
When asked to confirm rumours that I-Bhd is negotiating with a foreign party to develop the shopping centre in i-City, Lim said talks had reached an advanced stage and “is on track”.
“We anticipate the mall to be operational by Q2 2012. We continue to receive anchor tenant interest in leasing space in the mall.
“One of them, GSC, has expressed interest to build a futuristic cinema in this mall,” he added.
While the Cybercentre office suites were funded internally, he said the group might also seek other funding options such as joint ventures.
By The Star
Lim Boon Siong posing with a model of the RM2bil I-City ICT-based commercial development in Shah Alam
The former electrical appliance-maker turned information and communication technology (ICT)-based property developer has in less than two years forged strategic alliances with a slew of high-profile international and local partners.
They included ServCorp, CISCO, DataCraft, Intel, Telekom Malaysia, Kompakar, Universiti Industri Selangor, and lately AmBank, to provide this “No. 1 Technology City in Asia” state-of-the-art infrastructure and facilities from giga-speed fibre-optic network to smart banking services including full e-banking facilities.
“We are very pleased that i-City’s development is gaining momentum and becoming a global intelligent city comparable to other intelligent cities such as Dubai Internet City and Hong Kong Cyberport.
“The first phase of the development, comprising 300,000 sq ft of Cybercentre office suites has been completed in June this year and is ready for occupation,” said I-Bhd deputy chief executive officer Lim Boon Siong, adding that many tenants had moved in and renovating their offices.
Among key tenants are Logica and Redhot Media from the Britain and Unified Communication from Singapore. Kompakar, a leading data centre operator listed in Bursa Malaysia will occupy the 50,000 sq ft Tier-4 Ready data centre by first quarter of 2009.
“Future phases would transform i-City into a fully integrated township, comprising a shopping mall, corporate towers and offices, Cybercentre office suites, innovation centre, hotels and serviced apartments. It will also house multiple high-performance data centres and a digital media hub,” he added.
I-Bhd’s team has worked tirelessly the past three year and gradually seeing their labour bearing fruit.
On Oct 27, i-City was accorded “International Park” status by the Selangor state government, a boost to its image as the choice base for global technology firms.
The Government certified the privately funded project as an MSC Malaysia Cybercentre last May.
Lim said with the MSC Malaysia Cybercentre and International Park status, i-City’s vision to be the world’s foremost global intelligent city has been realised and would draw MSC Malaysia tenants and multinational companies (MNC) to invest in Selangor and Malaysia.
“To-date I-Bhd has invested over RM120mil. Our one-stop Concierge managed by ServCorp has been operational since October.
“Rental of meeting rooms and events hall with super-broadband of 20Mbps is also available. Tenants and visitors now have access to wireless internet with speeds of up to 20Mbps until March 31, 2009 for free,” he said.
Lim said phase 1 of CISCO Connected Real Estate (one of the world’s largest connected real estate) had been put in action such as CCTV to the personal computers and IP telephony which incorporates state-of-the-art teleconferencing system.
“This integrated commercial development is planned for both work and play. Tenants can expect to reduce their operation cost by as much as 30% and they could work, learn and socialise in a safe and secure environment served by remote surveillance, smart car parking, information kiosks, sensory-activated light and sound multimedia displays along a 1,000-foot pedestrian walkway,” he said.
Lim said the project was on track with the next phase of Cybercentre office suites to be ready by Q3 next year.
“What is exciting is that we have received increasing enquiries on purpose-built office buildings from MNCs to consolidate their office space and shared services from this region,” Lim said.
When asked to confirm rumours that I-Bhd is negotiating with a foreign party to develop the shopping centre in i-City, Lim said talks had reached an advanced stage and “is on track”.
“We anticipate the mall to be operational by Q2 2012. We continue to receive anchor tenant interest in leasing space in the mall.
“One of them, GSC, has expressed interest to build a futuristic cinema in this mall,” he added.
While the Cybercentre office suites were funded internally, he said the group might also seek other funding options such as joint ventures.
By The Star
New projects a boon to DNP
DNP Holdings Bhd has lined up high-end residential properties for launch in Seberang Prai and on the Penang island in 2009 and 2010 in tandem with its efforts to raise the revenue contribution from property development.
The group’s main revenue generator is presently the garment manufacturing business arm.
The properties planned for the first half of 2009 have a gross sales value of RM160mil, comprising 396 units of terraced, semi-detached, bungalows, and catalogue shops.
Its property arm, DNP Land Sdn Bhd, plans to launch the Sentral Greens project on the island in the first half of 2009 while in Central Seberang Perai, it aims to launch the second phase of BM Utama in Bukit Minyak and Taman Seri Impian in Alma.
K.C. Tan (right) and Marketing Manager Joe Ang Kean Joo showing the Sentral Greens project
The BM Utama launch would comprise 200 double-storey terraced houses, semi-detached, bungalows, and catalogue shops while the Sentral Greens project comprises 54 units of three-storey terraced and semi-detached properties.
The double-storey terraced and semi-detached homes in BM Utama are tentatively priced at RM290,000 and RM420,000 respectively, while the Sentral Greens properties are from RM808,000 onwards.
The Taman Seri Impian properties, comprising 142 terraced, semi-detached, bungalow, and commercial properties, are priced from RM240,000 onwards.
DNP Land general manager K.C. Tan said the group was focusing on development in central Seberang Perai because it was the district with the fastest growing population.
“There are more job opportunities in central Seberang Prai, as there are many industrial facilities in the district. There is also room for infrastructure to grow in central Seberang Prai,” he said.
Big overseas corporations such as Ibiden Co Ltd, Honeywell International, and St Jude Medical Inc are injecting billions of ringgit into their manufacturing facilities in Seberang Prai and Bayan Lepas.
These investments would create job opportunities and demand for housing in affordable housing estates in Penang.
In view of the sluggish market, DNP Land is taking a very cautious approach on selecting the type of properties for launch.
“During such times, the challenge is to launch projects that can attract buyers, taking into consideration that consumers are more particular in their taste when it comes to purchasing properties,” Tan said.
He said although the price of steel had come down by about 20%, the selling price of properties had yet to drop, as the prices of other raw materials such as cement and other aggregates remained high.
Tan said the only way to go since property prices had not come down was to add value to the projects by introducing guarded community projects for the higher income group working in the industrial estate such as the second phase of the BM Utama project.
“We’re creating homes with a variety of designs and equipped with quality finishing, located in a guarded community,” he said.
He added that because there are few guarded housing schemes on the mainland, the project should attract attention.
“The homes are located within lush greenery and have amenities such as a cycling track,” Tan said.
Meanwhile, he said the company wanted to carve a name for itself in the high-end segment of the residential property market on the island with the Sentral Greens project.
Tan said the project was located within walking distance to an 11-acre state metropolitan park and 150 acres of forest reserve. “The properties are aesthetically designed with modern architectural facades and designs,” he said.
DNP Land’s other planned projects include a guarded community project of super-linked terraced, semi-detached, and bungalow houses on a 100-acre site in Alma, Central Seberang Prai.
This project was scheduled for launch in late 2009, he said.
Tan said DNP Land also planned to launch the Alma Commercial Hub, comprising shop offices and a retail complex on a 60-acre site, in late 2009. He said this would cater to the needs of Alma residents and complement the existing business park.
Tan said the third phase of BM Utama project on a 20-acre site, comprising double-storey terraced and semi-detached properties, would be launched in 2010.
By The Star (stories by David Tan)
The group’s main revenue generator is presently the garment manufacturing business arm.
The properties planned for the first half of 2009 have a gross sales value of RM160mil, comprising 396 units of terraced, semi-detached, bungalows, and catalogue shops.
Its property arm, DNP Land Sdn Bhd, plans to launch the Sentral Greens project on the island in the first half of 2009 while in Central Seberang Perai, it aims to launch the second phase of BM Utama in Bukit Minyak and Taman Seri Impian in Alma.
K.C. Tan (right) and Marketing Manager Joe Ang Kean Joo showing the Sentral Greens project
The BM Utama launch would comprise 200 double-storey terraced houses, semi-detached, bungalows, and catalogue shops while the Sentral Greens project comprises 54 units of three-storey terraced and semi-detached properties.
The double-storey terraced and semi-detached homes in BM Utama are tentatively priced at RM290,000 and RM420,000 respectively, while the Sentral Greens properties are from RM808,000 onwards.
The Taman Seri Impian properties, comprising 142 terraced, semi-detached, bungalow, and commercial properties, are priced from RM240,000 onwards.
DNP Land general manager K.C. Tan said the group was focusing on development in central Seberang Perai because it was the district with the fastest growing population.
“There are more job opportunities in central Seberang Prai, as there are many industrial facilities in the district. There is also room for infrastructure to grow in central Seberang Prai,” he said.
Big overseas corporations such as Ibiden Co Ltd, Honeywell International, and St Jude Medical Inc are injecting billions of ringgit into their manufacturing facilities in Seberang Prai and Bayan Lepas.
These investments would create job opportunities and demand for housing in affordable housing estates in Penang.
In view of the sluggish market, DNP Land is taking a very cautious approach on selecting the type of properties for launch.
“During such times, the challenge is to launch projects that can attract buyers, taking into consideration that consumers are more particular in their taste when it comes to purchasing properties,” Tan said.
He said although the price of steel had come down by about 20%, the selling price of properties had yet to drop, as the prices of other raw materials such as cement and other aggregates remained high.
Tan said the only way to go since property prices had not come down was to add value to the projects by introducing guarded community projects for the higher income group working in the industrial estate such as the second phase of the BM Utama project.
“We’re creating homes with a variety of designs and equipped with quality finishing, located in a guarded community,” he said.
He added that because there are few guarded housing schemes on the mainland, the project should attract attention.
“The homes are located within lush greenery and have amenities such as a cycling track,” Tan said.
Meanwhile, he said the company wanted to carve a name for itself in the high-end segment of the residential property market on the island with the Sentral Greens project.
Tan said the project was located within walking distance to an 11-acre state metropolitan park and 150 acres of forest reserve. “The properties are aesthetically designed with modern architectural facades and designs,” he said.
DNP Land’s other planned projects include a guarded community project of super-linked terraced, semi-detached, and bungalow houses on a 100-acre site in Alma, Central Seberang Prai.
This project was scheduled for launch in late 2009, he said.
Tan said DNP Land also planned to launch the Alma Commercial Hub, comprising shop offices and a retail complex on a 60-acre site, in late 2009. He said this would cater to the needs of Alma residents and complement the existing business park.
Tan said the third phase of BM Utama project on a 20-acre site, comprising double-storey terraced and semi-detached properties, would be launched in 2010.
By The Star (stories by David Tan)
Paradise Realty banks on strategic growth area
Paradise Realty Sdn Bhd is banking on the location of its two property projects in the main growth nodes of Iskandar Malaysia to attract buyers.
Managing director Ch’ng Chee Lam said the projects were strategically located within the Tebrau-Plentong river basin development area.
Ch'ng Chee Lam
He said the area which were less than 5km away from the city centre and the new Johor Baru Customs, Immigration and Quarantine (CIQ) complex and the Causeway was an added advantage
“This is among the few remaining last piece of land left for development in the eastern part of Johor Baru with river frontage,’’ Chng told StarBiz.
He was speaking at the launch of the Puteri Paradise Serviced Residency at Taman Bayu Puteri near Kampung Bakar Batu on Sunday.
The 22-storey Puteri Paradise is the first “condotel” in Johor with built up area ranging from 56.577 sq metre to 135.638 sq metre and a price tag from RM262, 000.
It is offering guaranteed rental return (GPR) for the purchasers of the condotel where they would be entitled to 7% rental return annually on the purchase price for the next 10 years.
Under the GPR package, three years rental return of 21% in advance would be paid to the purchasers, who have to pay a RM5,000 deposit for a fully-furnished GPR unit.
Apart from the condotel, the company is also developing Bayu Puteri Marina comprising 34 units of semi-detached units and 24 units of superlink terrace houses.
Early next year, it would be launching 68 units of bungalows, semi-detached houses and superlink terraces fronting Sungai Tebrau. The bungalows are priced from RM1.5mil each, semi-detached units from RM1mil and superlinks from RM700,000.
“The two projects will keep us busy until 2011 with RM100mil gross development value (GDV) from Puteri Paradise and RM280mil GDV from Bayu Puteri Marina,’’ said Ch’ng.
He said apart from the location, the area would get a further boost with the Permas Second Bridge and Eastern Dispersal Link (EDL) highway in 2010 and 2011.
By The Star (by Zazali Musa)
Managing director Ch’ng Chee Lam said the projects were strategically located within the Tebrau-Plentong river basin development area.
Ch'ng Chee Lam
He said the area which were less than 5km away from the city centre and the new Johor Baru Customs, Immigration and Quarantine (CIQ) complex and the Causeway was an added advantage
“This is among the few remaining last piece of land left for development in the eastern part of Johor Baru with river frontage,’’ Chng told StarBiz.
He was speaking at the launch of the Puteri Paradise Serviced Residency at Taman Bayu Puteri near Kampung Bakar Batu on Sunday.
The 22-storey Puteri Paradise is the first “condotel” in Johor with built up area ranging from 56.577 sq metre to 135.638 sq metre and a price tag from RM262, 000.
It is offering guaranteed rental return (GPR) for the purchasers of the condotel where they would be entitled to 7% rental return annually on the purchase price for the next 10 years.
Under the GPR package, three years rental return of 21% in advance would be paid to the purchasers, who have to pay a RM5,000 deposit for a fully-furnished GPR unit.
Apart from the condotel, the company is also developing Bayu Puteri Marina comprising 34 units of semi-detached units and 24 units of superlink terrace houses.
Early next year, it would be launching 68 units of bungalows, semi-detached houses and superlink terraces fronting Sungai Tebrau. The bungalows are priced from RM1.5mil each, semi-detached units from RM1mil and superlinks from RM700,000.
“The two projects will keep us busy until 2011 with RM100mil gross development value (GDV) from Puteri Paradise and RM280mil GDV from Bayu Puteri Marina,’’ said Ch’ng.
He said apart from the location, the area would get a further boost with the Permas Second Bridge and Eastern Dispersal Link (EDL) highway in 2010 and 2011.
By The Star (by Zazali Musa)
RM350m boost for Danga Bay
Johor Baru's iconic development at the Danga Bay will be given another boost with a marina, an international convention centre, a boutique hotel, a budget hotel and an office block scheduled to be completed by 2011.
Announcing this yesterday, Datuk Lim Kang Hoo of Limbongan-Ekovest Management Sdn Bhd, the project manager of Danga Bay, said the company has pumped in RM350 million for this latest development which will take place mainly at the existing sites of the International Restaurants and the Bay Leaf Restaurant.
The project, once completed, is set to transform the waterfront into both a business and recreational hub.
He said the marina development could provide berthing facility for about 250 yachts, making it the largest marina in Johor and the nearest to the Johor Baru city centre.
Boasting strategic location and competitive pricing, this development, scheduled for completion by middle of next year, is set to become a new spot for international sailing boats.
It will stretch for 500 metres along the seafront.
"Level One of the existing double-storey International Restaurants will be transformed into a Marina Club with a bistro. Level Two and a piece of land just beside the building will be the site of a 60-room boutique hotel offering lifestyle accommodation for tourists with a taste for class.
"This seafront boutique hotel is the first of its kind in the south. It will be ready in two years.
"To make Johor Baru a convention hub in the south, we are transforming the existing Bay Leaf Restaurant into a three-hall Bay Leaf International Convention and Exhibition Centre with a capacity for 3,600 people.
"Also to be featured at the convention centre are meeting rooms, seminar rooms, VIP rooms and a mini-theatre. It is expected to be ready by next January," he said.
Another project coming up at Danga Bay is a 120-room Tune Hotel, a budget hotel, which will be built next to the existing Danga Bay sales office.
Following land acquisition as a result of coastal road construction, a multi-storey car park with a capacity for 1,000 vehicles will be built at the existing Celebration Square. An office block to house Danga Bay Sdn Bhd's corporate office will also be built in the vicinity.
Danga Bay is a Johor privatisation project involving the state government's development arm Kumpulan Prasarana Rakyat Johor which is the landowner, and the developer Danga Bay Sdn Bhd.
It is jointly managed by Ekovest and Pembinaan Limbongan Setia Bhd.
To be developed in phases over 15 years, the massive project covers over 562ha of waterfront land at the estuary of three rivers - Sungai Danga, Sungai Skudai and Sungai Melayu.
By Business Times (by Sim Bak Heng)
Announcing this yesterday, Datuk Lim Kang Hoo of Limbongan-Ekovest Management Sdn Bhd, the project manager of Danga Bay, said the company has pumped in RM350 million for this latest development which will take place mainly at the existing sites of the International Restaurants and the Bay Leaf Restaurant.
The project, once completed, is set to transform the waterfront into both a business and recreational hub.
He said the marina development could provide berthing facility for about 250 yachts, making it the largest marina in Johor and the nearest to the Johor Baru city centre.
Boasting strategic location and competitive pricing, this development, scheduled for completion by middle of next year, is set to become a new spot for international sailing boats.
It will stretch for 500 metres along the seafront.
"Level One of the existing double-storey International Restaurants will be transformed into a Marina Club with a bistro. Level Two and a piece of land just beside the building will be the site of a 60-room boutique hotel offering lifestyle accommodation for tourists with a taste for class.
"This seafront boutique hotel is the first of its kind in the south. It will be ready in two years.
"To make Johor Baru a convention hub in the south, we are transforming the existing Bay Leaf Restaurant into a three-hall Bay Leaf International Convention and Exhibition Centre with a capacity for 3,600 people.
"Also to be featured at the convention centre are meeting rooms, seminar rooms, VIP rooms and a mini-theatre. It is expected to be ready by next January," he said.
Another project coming up at Danga Bay is a 120-room Tune Hotel, a budget hotel, which will be built next to the existing Danga Bay sales office.
Following land acquisition as a result of coastal road construction, a multi-storey car park with a capacity for 1,000 vehicles will be built at the existing Celebration Square. An office block to house Danga Bay Sdn Bhd's corporate office will also be built in the vicinity.
Danga Bay is a Johor privatisation project involving the state government's development arm Kumpulan Prasarana Rakyat Johor which is the landowner, and the developer Danga Bay Sdn Bhd.
It is jointly managed by Ekovest and Pembinaan Limbongan Setia Bhd.
To be developed in phases over 15 years, the massive project covers over 562ha of waterfront land at the estuary of three rivers - Sungai Danga, Sungai Skudai and Sungai Melayu.
By Business Times (by Sim Bak Heng)
Seberang Prai offers lower construction cost
Known as Seberang Prai or Province Wellesley, the 756sq km land mass, separated from the island by a 13.5km bridge, is the only area in Penang where landed properties are still attractively priced.
The cost to build a three-storey terraced property, taking into consideration land and construction cost, is between RM200,000 and RM230,000 while launch prices for such properties are usually from RM280,000 onwards, depending on the location of the project.
On the island, the combined land and construction cost to build a three-storey house of about 3,200sq ft on the is between RM700,000 and RM750,000, while launch prices start from between RM800,000 and RM900,000.
The combined land and construction cost to build a 1,000sq ft high-rise unit is over RM280,000, and the property is priced in the market at RM400,000 and above.
Developers are not only attracted to build homes in Seberang Perai due to its lower cost but also because of the new manufacturing activities that have located there thereby creating jobs and demand for affordable housing.
While a recession might be around the corner, developers are still planning to launch residential properties although they are more cautious.
The growth areas for property projects are in Juru, Bukit Mertajam, Alma, and Seberang Jaya in Central Seberang Prai, Simpang Ampat, Bukit Tambun, and Jawi in South Seberang Prai, and Jalan Raja Uda and Butterworth town in North Seberang Prai.
Several developers said the Central Seberang Prai was attractive to them due to the industrial estate located within the district. DNP Land Sdn Bhd, a subsidiary of DNP Holdings Bhd, is focused on developing its landbank in the area, which saw the fastest population growth on the mainland.
Tambun Indah managing director Teh Kiak Seng told Starbiz that the type of project a developer would launch in the area depended on location. “For example, in Juru, where it is close to the factories and to the Auto-City, we launched the Juru Heights, which has a gross sales value of RM250mil.
The Real Estate and Housing Developers’ Association Penang chapter chairman Datuk Jerry Chan said there would be a slowdown in the launching of new development schemes next year, due to the global recession.
He said banks would be stricter in providing financing to developers or home buyers.
By The Star
The cost to build a three-storey terraced property, taking into consideration land and construction cost, is between RM200,000 and RM230,000 while launch prices for such properties are usually from RM280,000 onwards, depending on the location of the project.
On the island, the combined land and construction cost to build a three-storey house of about 3,200sq ft on the is between RM700,000 and RM750,000, while launch prices start from between RM800,000 and RM900,000.
The combined land and construction cost to build a 1,000sq ft high-rise unit is over RM280,000, and the property is priced in the market at RM400,000 and above.
Developers are not only attracted to build homes in Seberang Perai due to its lower cost but also because of the new manufacturing activities that have located there thereby creating jobs and demand for affordable housing.
While a recession might be around the corner, developers are still planning to launch residential properties although they are more cautious.
The growth areas for property projects are in Juru, Bukit Mertajam, Alma, and Seberang Jaya in Central Seberang Prai, Simpang Ampat, Bukit Tambun, and Jawi in South Seberang Prai, and Jalan Raja Uda and Butterworth town in North Seberang Prai.
Several developers said the Central Seberang Prai was attractive to them due to the industrial estate located within the district. DNP Land Sdn Bhd, a subsidiary of DNP Holdings Bhd, is focused on developing its landbank in the area, which saw the fastest population growth on the mainland.
Tambun Indah managing director Teh Kiak Seng told Starbiz that the type of project a developer would launch in the area depended on location. “For example, in Juru, where it is close to the factories and to the Auto-City, we launched the Juru Heights, which has a gross sales value of RM250mil.
The Real Estate and Housing Developers’ Association Penang chapter chairman Datuk Jerry Chan said there would be a slowdown in the launching of new development schemes next year, due to the global recession.
He said banks would be stricter in providing financing to developers or home buyers.
By The Star
Outlook still bright for Sunrise
Sunrise Bhd, well known for its landmark projects in the Mont' Kiara enclave, hopes to garner good margins when it launches properties in Selangor and Johor in future.
In Selangor, it has 22ha near the Mines in Seri Kembangan, acquired a few years ago.
Sunrise is targeting an upper middle class development encompassing condominiums, bungalows, double-storey link and semi-detached homes, worth in excess of RM300 million.
"The company is relooking the planning of the whole development to seek the best products for the area. It will launch properties when demand for houses improves," a company official said.
In Mersing, Johor, where it has 160ha oil palm plantation land, the company will launch properties when the market ripens, even if it takes a few more years.
Sunrise has held back launches in Mersing as it felt the market was not ready for large-scale projects.
"We are in no hurry to push the company's resources there or to launch. We want to focus on areas where there will be profitability for the company," the official told Business Times.
Besides its five ongoing projects in the Klang Valley, worth a combined RM3 billion, Sunrise is developing a township worth around RM500 million on 80ha in Seremban, Negri Sembilan.
Given the current global financial meltdown, Sunrise will continue to take proactive steps for new launches, the official said.
In Mont' Kiara, the company still has 32ha with an estimated gross development value of more than RM3 billion, which will continue to be its cash cow for the next six to eight years.
Sunrise executive deputy chairman Datuk Allan Lim Kim Huat said last month that it was going ahead with the launch of two projects in Malaysia and one in Canada next year, worth a combined RM2.5 billion.
They comprise its RM970 million flagship project on 2ha in Richmond, Canada, that will build five condominium blocks with some commercial elements; 28 Mont' Kiara, a six-star condominium development; and Solaris Towers, consisting of two office blocks.
By Business Times (by Sharen Kaur)
In Selangor, it has 22ha near the Mines in Seri Kembangan, acquired a few years ago.
Sunrise is targeting an upper middle class development encompassing condominiums, bungalows, double-storey link and semi-detached homes, worth in excess of RM300 million.
"The company is relooking the planning of the whole development to seek the best products for the area. It will launch properties when demand for houses improves," a company official said.
In Mersing, Johor, where it has 160ha oil palm plantation land, the company will launch properties when the market ripens, even if it takes a few more years.
Sunrise has held back launches in Mersing as it felt the market was not ready for large-scale projects.
"We are in no hurry to push the company's resources there or to launch. We want to focus on areas where there will be profitability for the company," the official told Business Times.
Besides its five ongoing projects in the Klang Valley, worth a combined RM3 billion, Sunrise is developing a township worth around RM500 million on 80ha in Seremban, Negri Sembilan.
Given the current global financial meltdown, Sunrise will continue to take proactive steps for new launches, the official said.
In Mont' Kiara, the company still has 32ha with an estimated gross development value of more than RM3 billion, which will continue to be its cash cow for the next six to eight years.
Sunrise executive deputy chairman Datuk Allan Lim Kim Huat said last month that it was going ahead with the launch of two projects in Malaysia and one in Canada next year, worth a combined RM2.5 billion.
They comprise its RM970 million flagship project on 2ha in Richmond, Canada, that will build five condominium blocks with some commercial elements; 28 Mont' Kiara, a six-star condominium development; and Solaris Towers, consisting of two office blocks.
By Business Times (by Sharen Kaur)
Saturday, November 15, 2008
UEM Land Holdings to make its debut on Bursa soon
Very few companies in corporate Malaysia have been reshaped, restructured and rebranded as many times as UEM Group. Since the Asian financial crisis in 1997/1998 when the group was reeling from massive debt, the sprawling diversified conglomerate (then called Renong Group) has been sliced and diced into various entities based on core activities.
Soon, another major restructuring will come to fruition. This time, it involves the restructuring of UEM World. The counter was suspended since late last month to make way for the debut of UEM Land Holdings Bhd on the main board of Bursa Malaysia. (UEM Land will take over the listing status of UEM World)
Earlier, UEM World had disposed of its entire shareholdings in four listed companies, namely UEM Builder Bhd, Pharmaniaga Bhd, Opus Group Bhd and Cement Industries Malaysia Bhd, to its shareholders as part of the restructuring plan. It subsequently reorganised its shareholdings in its wholly owned subsidiary, UEM Land Bhd, via a dividend-inspecie and capital repayment exercise. This involves the offering of five UEM Land Holdings shares for every four UEM World shares held and RM1.26 cash for each UEM World share held.
The restructuring of UEM World is primarily aimed at expanding the conglomerate’s real estate arm. And the incorporation of UEM Land Holdings in August 2008 as the flagship company for the real estate investment and development businesses of UEM Group and as the new parent company of UEM Land is geared towards that purpose. (UEM Group is a wholly owned subsidiary of Khazanah Nasional Bhd, which is the investment holding company of the Government.)
Wan Abdullah: Sales are slow but there are still buyers.
Post-listing, UEM Land Holdings will be 77.1%-owned by UEM Group and 22.9% by the public. On the public shareholding spread falling short of Bursa Malaysia’s requirement of 25%, UEM Land Holdings managing director Wan Abdullah Wan Ibrahim reveals that the company has been granted a time extension by the bourse to meet its requirement.
Valuable land bank
An analyst with a foreign research house views the restructuring of UEM World as a strategic move to generate investors’ interest. According to him, UEM Land appeals to investors because it owns a vast land bank in Iskandar Malaysia, which is one of the country’s economic growth corridors under the Ninth Malaysia Plan.
UEM Land currently owns about 40% of the total land area in Nusajaya. Spanning a total of 23,875 acres, Nusajaya has been identified as one of the five flagship economic zones in Iskandar Malaysia. It is currently under various stages of development to be transformed into an integrated township, with completion expected to be in 2030.
“Previously, the bulk of UEM World’s valuations were derived from UEM Land’s tract in Nusajaya,” the analyst explains, adding that investors who bought UEM World’s shares were actually capitalising on the potential appreciation of the land value.
However, he says that at this juncture it is hard to justify as to whether the indicated reference share price for UEM Land Holdings is a fair value. He attributes this to the concentration of UEM Land’s business activities in Nusajaya and the lack of historical earnings guidance for its projects there.
Although the prevailing poor market sentiment is likely to depress the reference share price of UEM Land Holdings further when it make its debut on the stock exchange next week, Wan Abdullah remains unfazed.
He is convinced that the potential income generated from UEM Land’s businesses in Nusajaya and the company’s upcoming projects in other growth areas will be the future determinant of the share value of UEM Land Holdings.
“We view our ongoing projects in Nusajaya as machinery to crank out sustainable revenue streams for the company,” says Wan Abdullah in an interview.
International relevance
UEM Land is the main developer of the township, given its large presence in Nusajaya. Among the projects under its belt are the Johor state new administrative centre, Puteri Harbour Waterfront Precinct and several high-end residential enclaves as well as commercial and industrial estates.
The Johor State New Administration Centre is one of UEM Land’s catalyst projects in Nusajaya.
According to Wan Abdullah, UEM Land will bank on the diversity of its product offerings at Nusajaya, which target various market segments, to deliver consistent sales in the challenging economic climate ahead.
“There is no doubt that buying activities are going to slow down and we are bracing ourselves for the challenges ahead. However, we believe there are still buyers, particularly from the affluent market, who would be interested in investing in our projects,” he says.
“We believe we could steer out of this turbulence with sweet success as we have a wide and diversified market from which to tap,” he adds.
Nusajaya’s strategic location close to Singapore and its easy access to various facilities, including two international airports and five seaports as well as a comprehensive network of roads and expressways, will add strength to the company’s projects.
Homes at East Ledang high-end residential precinct come with exclusive designs.
To date, UEM Land has recorded encouraging sales for its Nusajaya projects. For instance, its four high-end residential developments – namely Nusa Idaman, Horizon Hills, Ledang Heights and East Ledang – have recorded take-up rates of 59% to 84%.
Wan Abdullah says most of these buyers are foreign investors, with the bulk of them coming from Singapore. He adds that the company continues to see a growing interest among foreign investors, particularly from the Asia-Pacific and Middle East regions, for its projects, thanks to its aggressive international marketing.
Meanwhile, it is understood that the company’s appeal for the relaxation of the quotas imposed on foreign home ownership is still under consideration by the Johor government. Currently, the quotas for foreign home ownership are 20% for residential and 50% for resort-type projects.
Development progress intact
Wan Abdullah reveals that UEM Land’s projects are proceeding as planned despite the worsening financial crisis over the past few months threatening to lead to a global recession. He says the company is now at the final stage of negotiations with a consortium of local bankers for the financing of its projects in Nusajaya.
UEM Land also seeks to form more strategic partnerships to increase the development pace in Nusajaya. The company already has partnerships with two Middle East property developers – Limitless Holdings Pte Ltd and DAMAC Group – and three local players – Crescendo Corp Bhd, Gamuda Bhd and United Malayan Land Bhd – for its various projects in Nusajaya.
Wan Abdullah says the company’s strategic partners were selected based on several criteria established by its board. This includes having a wide market outreach and possessing the technical and financial capabilities for real estate developments.
Going forward, UEM Land will diversify its business with development projects in other growth areas such as the Klang Valley and Penang. According to Wan Abdullah, the company is also exploring other options to grow its business and that includes acquisitions of strategic buildings for leasing purposes and REITs.
On the company’s plan to expand overseas, Wan Abdullah says the management has adopted a cautious stance because “the current climate is not looking good”. He says the company does not have the capacity currently to expand overseas but it will look into such a possibility probably two years down the road when the economy improves.
By The Star (by Celilia Kok)
Soon, another major restructuring will come to fruition. This time, it involves the restructuring of UEM World. The counter was suspended since late last month to make way for the debut of UEM Land Holdings Bhd on the main board of Bursa Malaysia. (UEM Land will take over the listing status of UEM World)
Earlier, UEM World had disposed of its entire shareholdings in four listed companies, namely UEM Builder Bhd, Pharmaniaga Bhd, Opus Group Bhd and Cement Industries Malaysia Bhd, to its shareholders as part of the restructuring plan. It subsequently reorganised its shareholdings in its wholly owned subsidiary, UEM Land Bhd, via a dividend-inspecie and capital repayment exercise. This involves the offering of five UEM Land Holdings shares for every four UEM World shares held and RM1.26 cash for each UEM World share held.
The restructuring of UEM World is primarily aimed at expanding the conglomerate’s real estate arm. And the incorporation of UEM Land Holdings in August 2008 as the flagship company for the real estate investment and development businesses of UEM Group and as the new parent company of UEM Land is geared towards that purpose. (UEM Group is a wholly owned subsidiary of Khazanah Nasional Bhd, which is the investment holding company of the Government.)
Wan Abdullah: Sales are slow but there are still buyers.
Post-listing, UEM Land Holdings will be 77.1%-owned by UEM Group and 22.9% by the public. On the public shareholding spread falling short of Bursa Malaysia’s requirement of 25%, UEM Land Holdings managing director Wan Abdullah Wan Ibrahim reveals that the company has been granted a time extension by the bourse to meet its requirement.
Valuable land bank
An analyst with a foreign research house views the restructuring of UEM World as a strategic move to generate investors’ interest. According to him, UEM Land appeals to investors because it owns a vast land bank in Iskandar Malaysia, which is one of the country’s economic growth corridors under the Ninth Malaysia Plan.
UEM Land currently owns about 40% of the total land area in Nusajaya. Spanning a total of 23,875 acres, Nusajaya has been identified as one of the five flagship economic zones in Iskandar Malaysia. It is currently under various stages of development to be transformed into an integrated township, with completion expected to be in 2030.
“Previously, the bulk of UEM World’s valuations were derived from UEM Land’s tract in Nusajaya,” the analyst explains, adding that investors who bought UEM World’s shares were actually capitalising on the potential appreciation of the land value.
However, he says that at this juncture it is hard to justify as to whether the indicated reference share price for UEM Land Holdings is a fair value. He attributes this to the concentration of UEM Land’s business activities in Nusajaya and the lack of historical earnings guidance for its projects there.
Although the prevailing poor market sentiment is likely to depress the reference share price of UEM Land Holdings further when it make its debut on the stock exchange next week, Wan Abdullah remains unfazed.
He is convinced that the potential income generated from UEM Land’s businesses in Nusajaya and the company’s upcoming projects in other growth areas will be the future determinant of the share value of UEM Land Holdings.
“We view our ongoing projects in Nusajaya as machinery to crank out sustainable revenue streams for the company,” says Wan Abdullah in an interview.
International relevance
UEM Land is the main developer of the township, given its large presence in Nusajaya. Among the projects under its belt are the Johor state new administrative centre, Puteri Harbour Waterfront Precinct and several high-end residential enclaves as well as commercial and industrial estates.
The Johor State New Administration Centre is one of UEM Land’s catalyst projects in Nusajaya.
According to Wan Abdullah, UEM Land will bank on the diversity of its product offerings at Nusajaya, which target various market segments, to deliver consistent sales in the challenging economic climate ahead.
“There is no doubt that buying activities are going to slow down and we are bracing ourselves for the challenges ahead. However, we believe there are still buyers, particularly from the affluent market, who would be interested in investing in our projects,” he says.
“We believe we could steer out of this turbulence with sweet success as we have a wide and diversified market from which to tap,” he adds.
Nusajaya’s strategic location close to Singapore and its easy access to various facilities, including two international airports and five seaports as well as a comprehensive network of roads and expressways, will add strength to the company’s projects.
Homes at East Ledang high-end residential precinct come with exclusive designs.
To date, UEM Land has recorded encouraging sales for its Nusajaya projects. For instance, its four high-end residential developments – namely Nusa Idaman, Horizon Hills, Ledang Heights and East Ledang – have recorded take-up rates of 59% to 84%.
Wan Abdullah says most of these buyers are foreign investors, with the bulk of them coming from Singapore. He adds that the company continues to see a growing interest among foreign investors, particularly from the Asia-Pacific and Middle East regions, for its projects, thanks to its aggressive international marketing.
Meanwhile, it is understood that the company’s appeal for the relaxation of the quotas imposed on foreign home ownership is still under consideration by the Johor government. Currently, the quotas for foreign home ownership are 20% for residential and 50% for resort-type projects.
Development progress intact
Wan Abdullah reveals that UEM Land’s projects are proceeding as planned despite the worsening financial crisis over the past few months threatening to lead to a global recession. He says the company is now at the final stage of negotiations with a consortium of local bankers for the financing of its projects in Nusajaya.
UEM Land also seeks to form more strategic partnerships to increase the development pace in Nusajaya. The company already has partnerships with two Middle East property developers – Limitless Holdings Pte Ltd and DAMAC Group – and three local players – Crescendo Corp Bhd, Gamuda Bhd and United Malayan Land Bhd – for its various projects in Nusajaya.
Wan Abdullah says the company’s strategic partners were selected based on several criteria established by its board. This includes having a wide market outreach and possessing the technical and financial capabilities for real estate developments.
Going forward, UEM Land will diversify its business with development projects in other growth areas such as the Klang Valley and Penang. According to Wan Abdullah, the company is also exploring other options to grow its business and that includes acquisitions of strategic buildings for leasing purposes and REITs.
On the company’s plan to expand overseas, Wan Abdullah says the management has adopted a cautious stance because “the current climate is not looking good”. He says the company does not have the capacity currently to expand overseas but it will look into such a possibility probably two years down the road when the economy improves.
By The Star (by Celilia Kok)
Columbia Asia to invest RM225m in 3 new hospitals
Regional healthcare provider Columbia Asia, which currently operates five community hospitals in Malaysia, is investing about RM225 million in three new hospitals here.
Once completed by 2010, the company will have a total of 11 hospitals nationwide since the launch of its first hospital in Seremban in 1994, said chairman Rick Evans yesterday.
EVANS: RM116 million Islamic loan to part finance the building of the three hospitals
Close to 60 per cent of the total cost of the three hospitals is being financed through bank loans while the rest is from its various private equity owners.
In Malaysia, the Employees Provident Fund (EPF) holds 30 per cent of Columbia Asia Sdn Bhd.
Evans told reporters this after the signing of a RM116 million syndicated Islamic loan with Bank Rakyat, RHB Islamic Bank Bhd and Bank Muamalat Malaysia Bhd in Kuala Lumpur yesterday.
"This financing will only part-finance the construction of the three hospitals and the rest will be raised from our investors," he said.
Columbia Asia is the Asian entity for Seattle-based investment and money manager Columbia Pacific, which recently raised a total equity of US$325 million (RM1.17 billion) in its second round of financing for its Asian operations in four countries, including Vietnam, Indonesia and India.
In Malaysia, apart from the three new hospitals to be built, three others are now under construction. The six new hospitals are in Balakong, Bukit Rimau, Kota Damansara, Nusajaya, Setapak and Bintulu.
By 2010, Columbia Asia will have 21 hospitals and an airport clinic in India, 11 hospitals here, three in Vietnam and three in Indonesia, together representing an investment of over US$600 million.
"We are looking at expanding to the Philippines," said Evans, adding that the healthcare business is not affected by any economic downturn.
Unlike some hospitals, Columbia Asia is not interested in medical tourism.
"Malaysians used to go to Singapore for treatment some time back and now they prefer to stay home. Indonesians now come here but we believe that not so long from now, they will prefer to stay in their country too," he said.
Evans said Columbia Asia aims to be the preferred choice for employers, insurance companies and families. Some 60 per cent of the company's revenue in Malaysia was contributed by third-party administrators like companies and insurers.
Columbia Asia hospitals make about RM3 million a month in revenue and a new hospital usually breaks even in a year.
By Business Times (by Roziana Hamsawi)
Once completed by 2010, the company will have a total of 11 hospitals nationwide since the launch of its first hospital in Seremban in 1994, said chairman Rick Evans yesterday.
EVANS: RM116 million Islamic loan to part finance the building of the three hospitals
Close to 60 per cent of the total cost of the three hospitals is being financed through bank loans while the rest is from its various private equity owners.
In Malaysia, the Employees Provident Fund (EPF) holds 30 per cent of Columbia Asia Sdn Bhd.
Evans told reporters this after the signing of a RM116 million syndicated Islamic loan with Bank Rakyat, RHB Islamic Bank Bhd and Bank Muamalat Malaysia Bhd in Kuala Lumpur yesterday.
"This financing will only part-finance the construction of the three hospitals and the rest will be raised from our investors," he said.
Columbia Asia is the Asian entity for Seattle-based investment and money manager Columbia Pacific, which recently raised a total equity of US$325 million (RM1.17 billion) in its second round of financing for its Asian operations in four countries, including Vietnam, Indonesia and India.
In Malaysia, apart from the three new hospitals to be built, three others are now under construction. The six new hospitals are in Balakong, Bukit Rimau, Kota Damansara, Nusajaya, Setapak and Bintulu.
By 2010, Columbia Asia will have 21 hospitals and an airport clinic in India, 11 hospitals here, three in Vietnam and three in Indonesia, together representing an investment of over US$600 million.
"We are looking at expanding to the Philippines," said Evans, adding that the healthcare business is not affected by any economic downturn.
Unlike some hospitals, Columbia Asia is not interested in medical tourism.
"Malaysians used to go to Singapore for treatment some time back and now they prefer to stay home. Indonesians now come here but we believe that not so long from now, they will prefer to stay in their country too," he said.
Evans said Columbia Asia aims to be the preferred choice for employers, insurance companies and families. Some 60 per cent of the company's revenue in Malaysia was contributed by third-party administrators like companies and insurers.
Columbia Asia hospitals make about RM3 million a month in revenue and a new hospital usually breaks even in a year.
By Business Times (by Roziana Hamsawi)
ASB wants to manage more properties
SHAH ALAM: Advance Synergy Bhd, which manages 17 hotels and resorts, plans to increase the number of such properties as it seeks to make this segment the core business, executive chairman Datuk Ahmad Sebi Bakar said.
“We are now trying to increase the (property) management sites. Instead of buying hotels, we want to manage other people’s hotels.
“That is the next step that we are trying to push ourselves forward,” he said after the company EGM yesterday.
However, the group would rather not invest in property but manage hotels for other parties, he added.
Of its 17 hotels and resorts, eight are in Malaysia and nine are overseas.
Earlier, ASB shareholders approved the acquisition of the remaining shares in its 75%-owned Advance Synergy Capital Bhd at 60 sen per share and the subsequent delisting of the latter. “It is better for them (shareholders) to realise their investments at the current offer price and see how to invest again when things get better and clearer,” he added.
By The Star
“We are now trying to increase the (property) management sites. Instead of buying hotels, we want to manage other people’s hotels.
“That is the next step that we are trying to push ourselves forward,” he said after the company EGM yesterday.
However, the group would rather not invest in property but manage hotels for other parties, he added.
Of its 17 hotels and resorts, eight are in Malaysia and nine are overseas.
Earlier, ASB shareholders approved the acquisition of the remaining shares in its 75%-owned Advance Synergy Capital Bhd at 60 sen per share and the subsequent delisting of the latter. “It is better for them (shareholders) to realise their investments at the current offer price and see how to invest again when things get better and clearer,” he added.
By The Star
Friday, November 14, 2008
A night to remember
The MPA 2008 winners on stage with Yang di-Pertuan Agong Tuanku Mizan Zainal Abidin.
PETALING JAYA: It was a memorable night for Naim Cendera Holdings Bhd managing director Datuk Hasmi Hasnan at the International Real Estate Federation (FIABCI) Malaysia Property Award 2008 (MPA 2008) on Wednesday.
Hasmi is the first Sarawakian and east Malaysian to win the new Property Man of the Year award.
Organised by the FIABCI Malaysian Chapter, this is the 16th year of the awards.
Dubbed the “property Oscars”, the awards also acknowledged 10 property projects in a glittering ceremony held at One World Hotel.
The event was graced by Yang di-Pertuan Agong Tuanku Mizan Zainal Abidin and Raja Permaisuri Agong Tuanku Nur Zahirah, and attended by more than 1,000 foreign and local guests.
The arrival of Yang di-Pertuan Agong Tuanku Mizan Zainal Abidin (second from right) and Raja Permaisuri Agong Tuanku Nur Zahirah (in red) at the MPA 2008 accompanied by FIABCI Malaysia president Richard Fong (left), MPA 2008 organising chairman Yeow Thit Sang (second on left) and FIABCI Malaysia evaluation chairman Yu Kee Su.
Hasmi said the group would consider selling more affordable property units as the market would be soft due to the slowing economy.
“This is a challenge for us. We have not launched any new project because we have to see how difficult the economic situation gets. Currently, we have some ongoing projects in Miri and Kuching,” he said.
Hasmi also hoped to venture into the property sector in Peninsular Malaysia should the opportunity arise for reasonably-priced land.
YTL Land & Development Bhd executive director Datuk Yeoh Seok Kian said the company would be launching more projects in Sentul next year.
“The 300-acre land bank in Sentul will keep us busy for at least six to seven years,” he said.
Meanwhile, SP Setia Bhd group managing director and chief executive officer Tan Sri Liew Kee Sin said participation in the award was an opportunity to see where the company stood in the market.
“Today, Malaysia has many prominent developers. I am very proud that local developers are as good as the international players.
“We will keep improving ourselves. In today’s competitive environment, we must always be ahead (of our rivals),” he said, adding that the company had 20 ongoing projects.
Urusharta Cemerlang Sdn Bhd (the owner and developer of Kuala Lumpur Pavilion) chairman Tan Sri Zainol Mahmood said retail development needed the support from tourists.
“We are looking to have some projects in Penang as it is a popular tourist destination,” he said.
By The Star
Be resilient to face slowdown, builders told
PETALING JAYA: Developers must be optimistic and resilient in facing the current slowdown in the property market, says Country Heights Holdings Bhd founder and vice-chairman Tan Sri Lee Kim Yew.
Tan Sri Lee Kim Yew
“The sector is facing a slowdown as the result of the current economic conditions. Though we do feel cautious, we must not be pessimists,” he said during the CEO roundtable session at the summit.
He was confident the sector, which survived the 1997 economic crisis, would be able to weather the present crisis.
“If you are all well prepared, a crisis like this could offer you more opportunities, provided you become more innovative in terms of product and marketing strategy,” he said.
For example, developing residential properties within a golf course could be one strategy as more people loved to play golf and wanted nice surroundings for their homes, he added.
Lee said Malaysia was still an attractive market even to the foreigners as prices were still affordable.
Stressing that the Government had already helped the sector with its policy towards reducing the construction cost, he said developers must not be greedy by pushing property prices so high that it could create a bubble.
He advised developers not to neglect the domestic market in their eagerness to attract foreign investors for their high-end properties.
“We cannot deny that domestic demand is key to our business. We must realise that houses are not a want, but a need for most people,” he said.
Asean Association for Planning and Housing president and past president of Real Estate and Housing Developers Association Datuk Eddy Chen said developers should look at their balance sheet and trim some of their profit margin to sell their properties during the current market slowdown.
Ireka Corp Bhd executive director Lai Voon Hon said the stable local financial market would help sustain the property sector.
He added that property prices in the country were still competitive compared with neighbouring countries like Singapore.
He also said developers that were resilient during the current difficult times would be able to exploit the market boom expected in another four to five years.
By The Star
Tan Sri Lee Kim Yew
“The sector is facing a slowdown as the result of the current economic conditions. Though we do feel cautious, we must not be pessimists,” he said during the CEO roundtable session at the summit.
He was confident the sector, which survived the 1997 economic crisis, would be able to weather the present crisis.
“If you are all well prepared, a crisis like this could offer you more opportunities, provided you become more innovative in terms of product and marketing strategy,” he said.
For example, developing residential properties within a golf course could be one strategy as more people loved to play golf and wanted nice surroundings for their homes, he added.
Lee said Malaysia was still an attractive market even to the foreigners as prices were still affordable.
Stressing that the Government had already helped the sector with its policy towards reducing the construction cost, he said developers must not be greedy by pushing property prices so high that it could create a bubble.
He advised developers not to neglect the domestic market in their eagerness to attract foreign investors for their high-end properties.
“We cannot deny that domestic demand is key to our business. We must realise that houses are not a want, but a need for most people,” he said.
Asean Association for Planning and Housing president and past president of Real Estate and Housing Developers Association Datuk Eddy Chen said developers should look at their balance sheet and trim some of their profit margin to sell their properties during the current market slowdown.
Ireka Corp Bhd executive director Lai Voon Hon said the stable local financial market would help sustain the property sector.
He added that property prices in the country were still competitive compared with neighbouring countries like Singapore.
He also said developers that were resilient during the current difficult times would be able to exploit the market boom expected in another four to five years.
By The Star
YTL Land plans another project near Lake Edge
WINNING QUALITY: Lake Edge has won top honours at the 16th FIABCI Malaysia Property Awards in the residential award category for Best Low-Rise.
YTL Land & Development Bhd, the property arm of YTL Corp Bhd, plans to develop another 8ha of land next to its Lake Edge gated community in Puchong, Selangor.
The plan is to build 45 units of high-end terrace homes with a gross development value of RM50 million, senior manager for sales and marketing Judy C.L. Loo said.
Loo told Business Times during a site visit yesterday that the design and layout plan is on the drawing board and it will be ready to launch in a year or two.
"YTL is confident of the take-up rate, looking at sales achieved from our earlier units and positive response from our ongoing registration exercise," Loo said.
The existing Lake Edge features courtyard, terrace, semi-detached homes and bungalows totalling 375 units, worth some RM450 million.
Launched in phases since 2004, YTL has sold and handed over 309 units of the courtyard homes and terraces to buyers, majority of whom were from Puchong.
Loo said construction and sales of products in Lake Edge were not affected by recent developments in the market.
"Our products have been selling well with positive feedback from buyers. We are also getting new registrations from potential buyers," she said.
Still under development are 50 units of two-and-a-half storey semi-detached homes with private lap pools known as Waterville, each worth over RM1.6 million.
This month, YTL will launch Waterville, which is due for completion by December next year, and also Parkville.
Parkville comprises eight units of double-storey semi-detached homes, worth over RM1.8 million each, and eight units of bungalows valued at more than RM2.1 million per unit, which have been built under a build-and-sell concept.
"YTL is optimistic the Waterville and Parkville units will be snapped up by June next year despite a downturn in the global financial markets. It has secured pre-sales from the two," Loo said.
Lake Edge won top honours at the 16th FIABCI-Malaysia Property Awards ceremony recently in the residential award category for Best Low-Rise.
By Business Times (by Sharen Kaur)
Developers’ good track record can help boost sales
PUCHONG: A developer’s track record is what buyers look at during challenging economic times, says YTL Land & Development Bhd sales and marketing senior manager Judy Loo.
Speaking during a media tour of its leasehold Waterville Homes, Loo said buyers were not put off by the fact that a particular project was not freehold.
“I don’t think it is a hindrance. Buyers today are more influenced by the track record of a developer, especially in the current challenging times,” she said.
She added that the homes, which are part of YTL Land’s high-end, 80-acre Lake Edge project in Puchong, had received strong interest mainly from Puchong residents.
“Most of the potential purchasers are from the Puchong area who are looking to upgrade. We have also received interest from existing Lake Edge residents,” Loo said.
She added that the Waterville Homes, now about 65% completed, comprised 50 units of 2½-storey semi-detached houses with a private lap pool each. The standard lot size is 40ft x 85ft.
Built on 4.4 acres of leasehold land, the homes are expected to be completed by end-2009. Priced at RM1.6mil per unit, this phase would have a gross development value of RM80mil, Loo said.
Lake Edge comprises multi-themed fenceless homes set in a modern tropical neighbourhood. A 12-acre lake is also part of the development.
The project received the award for best low-rise residential development at the FIABCI Malaysia Property Award 2008 held in Petaling Jaya on Tuesday.
By The Star
Speaking during a media tour of its leasehold Waterville Homes, Loo said buyers were not put off by the fact that a particular project was not freehold.
“I don’t think it is a hindrance. Buyers today are more influenced by the track record of a developer, especially in the current challenging times,” she said.
She added that the homes, which are part of YTL Land’s high-end, 80-acre Lake Edge project in Puchong, had received strong interest mainly from Puchong residents.
“Most of the potential purchasers are from the Puchong area who are looking to upgrade. We have also received interest from existing Lake Edge residents,” Loo said.
She added that the Waterville Homes, now about 65% completed, comprised 50 units of 2½-storey semi-detached houses with a private lap pool each. The standard lot size is 40ft x 85ft.
Built on 4.4 acres of leasehold land, the homes are expected to be completed by end-2009. Priced at RM1.6mil per unit, this phase would have a gross development value of RM80mil, Loo said.
Lake Edge comprises multi-themed fenceless homes set in a modern tropical neighbourhood. A 12-acre lake is also part of the development.
The project received the award for best low-rise residential development at the FIABCI Malaysia Property Award 2008 held in Petaling Jaya on Tuesday.
By The Star
Sime Darby Property doubles sales target
KUALA LUMPUR: Sime Darby Property Bhd is doubling its sales target to RM200mil for the second instalment of its Parade of Homes fair, but is cautious about the property outlook going forward.
Managing director Tunku Datuk Putra Badlishah said new launches and sales targets for its current financial year ending June 30 (FY09) would be reviewed constantly due to the current downbeat economic situation.
From left: Tunku Datuk Putra Badlishah and RHB Bank retail head Renzo Viegas launching the second instalment of the Parade of Homes.
He said the company’s sales target for FY09 was a “moving target” and that given the current situation, the company was cautious about new launches.
“We’ll be focusing on what we have right now and if there are any new launches, there will be a lot of pre-sales done before we make a commitment to launch,” Tunku Putra said.
The sales target for the second instalment of Parade of Homes had been doubled to RM200mil due to the longer sale period, he added.
The total value of properties for the current sale is RM500mil.
The first instalment of the Parade of Homes in June generated over RM248mil in sales. The company had a sales target of RM100mil then.
“We were pleasantly surprised by the take-up rates in June when the market was quite weak,” Tunku Putra said.
The current instalment of the Parade of Homes is being held from today until Dec 15.
In conjunction with the sales launch, Sime Darby Property is working with RHB Bank to offer financing under the “RHB Unique Financial Solutions” packages as well as a guaranteed buy-back scheme for purchases during the sales period.
By The Star
Managing director Tunku Datuk Putra Badlishah said new launches and sales targets for its current financial year ending June 30 (FY09) would be reviewed constantly due to the current downbeat economic situation.
From left: Tunku Datuk Putra Badlishah and RHB Bank retail head Renzo Viegas launching the second instalment of the Parade of Homes.
He said the company’s sales target for FY09 was a “moving target” and that given the current situation, the company was cautious about new launches.
“We’ll be focusing on what we have right now and if there are any new launches, there will be a lot of pre-sales done before we make a commitment to launch,” Tunku Putra said.
The sales target for the second instalment of Parade of Homes had been doubled to RM200mil due to the longer sale period, he added.
The total value of properties for the current sale is RM500mil.
The first instalment of the Parade of Homes in June generated over RM248mil in sales. The company had a sales target of RM100mil then.
“We were pleasantly surprised by the take-up rates in June when the market was quite weak,” Tunku Putra said.
The current instalment of the Parade of Homes is being held from today until Dec 15.
In conjunction with the sales launch, Sime Darby Property is working with RHB Bank to offer financing under the “RHB Unique Financial Solutions” packages as well as a guaranteed buy-back scheme for purchases during the sales period.
By The Star
Sime Darby Property sweetens home campaign
SIME Darby Property Bhd expects its second property campaign to record RM200 million sales during the month-long event.
It is targeting a lower sales figure than its first campaign in June, which generated RM248 million sales, amid the current uncertain market conditions.
The "Parade of Homes" will run from today until December 15. Properties for sale will be featured at Sime Darby sales galleries and show units at all its 10 townships.
Sime Darby Property managing director Datuk Tunku Putra Badlishah Tunku Annuar said the RM200 million figure was a conservative target.
"We have RM500 million worth of properties on sale, which are in different stages of construction. Some have just been launched.
"For residential properties, prices range from RM160,000 to RM2 million," Tunku Badlishah told a news conference after the launch of the campaign in Kuala Lumpur yesterday.
Also present were Sime Darby property development head Tengku Ab Aziz Tengku Mahmud and RHB Bank Bhd retail head Renzo Viegas.
The properties range from affordable to high-end homes and landed to high-rise in townships like Subang Jaya, Bukit Jelutong, USJ Heights, Bandar Bukit Raja, Ara Damansara, Denai Alam, Melawati, Nilai Impian, Planters' Haven and Putra Heights.
Tunku Badlishah said that Sime Darby Property's "Guaranteed Buy Back" (GBB) scheme coupled with RHB Bank's financing packages would make it attractive to buy properties during the campaign.
"Under the GBB scheme, Sime Darby Property will buy back the property purchased during the campaign period if the purchaser decides not to proceed with the purchase," he said.
Meanwhile, Viegas said that RHB Bank's innovative financing will give customers more flexibility and allow them to better manage their cash flow.
The advantages include not having to pay interest during the construction period, up to 90 per cent financing and paydown payment through existing property financing.
By Business Times (by Hamisah Hamid)
Offer unsold Bumi units to other buyers: Developers
The Real Estate and Housing Developers' Association (Rehda) has proposed that houses set aside for Bumiputeras be opened up to others if there are no Bumiputera buyers within six months or halfway through the construction period, whichever is earlier.
Rehda president Datuk Ng Seing Liong said the move will help ease the burden of interest payments and holding cost by industry players.
Currently, developers must set aside up to 30 per cent of available units in a housing scheme for Bumiputeras, and these are offered at five to 15 per cent discounts.
"In addition to high cost of land, property developers still have to pay for building materials and other construction costs. At times like this, it is difficult for property developers to continue and subsidise," Ng said yesterday.
He was speaking to reporters at the National Property and Housing Summit 2008, organised by the Asian Strategic and Leadership Institute.
Ng said that Rehda submitted a proposal to the government to look into the matter six months ago.
It also requested the authorities take over the development of low-cost housing so that industry players could concentrate on higher-cost projects.
Currently, lower-cost housing is being subsidised by profits from higher-cost projects. The regulator requires developers to allocate between 20 and 30 per cent of their development area to low-cost housing.
"Sometimes, these low-cost housing units go unsold and developers suffer losses," Ng said.
By Business Times (by Zurinna Raja Adam)
Rehda president Datuk Ng Seing Liong said the move will help ease the burden of interest payments and holding cost by industry players.
Currently, developers must set aside up to 30 per cent of available units in a housing scheme for Bumiputeras, and these are offered at five to 15 per cent discounts.
"In addition to high cost of land, property developers still have to pay for building materials and other construction costs. At times like this, it is difficult for property developers to continue and subsidise," Ng said yesterday.
He was speaking to reporters at the National Property and Housing Summit 2008, organised by the Asian Strategic and Leadership Institute.
Ng said that Rehda submitted a proposal to the government to look into the matter six months ago.
It also requested the authorities take over the development of low-cost housing so that industry players could concentrate on higher-cost projects.
Currently, lower-cost housing is being subsidised by profits from higher-cost projects. The regulator requires developers to allocate between 20 and 30 per cent of their development area to low-cost housing.
"Sometimes, these low-cost housing units go unsold and developers suffer losses," Ng said.
By Business Times (by Zurinna Raja Adam)
Call for Govt to relax bumi quota ruling
PETALING JAYA: Housing developers have urged the Government to relax the bumiputra quota for housing schemes, as unsold bumiputra units are placing a heavy burden on them amid the weak global economy.
Real Estate and Housing Developers Association of Malaysia (Rehda) president Datuk Ng Seing Liong reiterated his earlier calls for the Government to review the bumiputra quota policy and standardise it in all states.
“We hope that all the state governments will seriously consider our proposal to limit the bumiputra quota to a maximum of 30% of the total units. Discounts for Malay buyers should be capped at 5% and be only applicable for properties valued at RM250,000 and below.
“In addition, there should be an automatic release of the quota units after six months of a project’s launch or when construction has reached 50%, whichever is earlier,” he told the media on the sidelines of the summit.
The two-day summit gathered property developers, housing associations and government bodies to discuss the current and future issues relating to the property industry. It was opened by Housing and Local Government Minister Datuk Seri Ong Ka Chuan.
Meanwhile, Glomac Bhd managing director Datuk F.D. Iskandar, one of the panel moderators at the summit, suggested that the Malaysia My Second Home (MM2H) scheme be placed under the Prime Minister’s Department because the Tourism Ministry was unable to promote it effectively.
“The Tourism Ministry is focusing more on attracting tourists than ensuring the MM2H programme is successful,” he said.
By The Star
Real Estate and Housing Developers Association of Malaysia (Rehda) president Datuk Ng Seing Liong reiterated his earlier calls for the Government to review the bumiputra quota policy and standardise it in all states.
“We hope that all the state governments will seriously consider our proposal to limit the bumiputra quota to a maximum of 30% of the total units. Discounts for Malay buyers should be capped at 5% and be only applicable for properties valued at RM250,000 and below.
“In addition, there should be an automatic release of the quota units after six months of a project’s launch or when construction has reached 50%, whichever is earlier,” he told the media on the sidelines of the summit.
The two-day summit gathered property developers, housing associations and government bodies to discuss the current and future issues relating to the property industry. It was opened by Housing and Local Government Minister Datuk Seri Ong Ka Chuan.
Meanwhile, Glomac Bhd managing director Datuk F.D. Iskandar, one of the panel moderators at the summit, suggested that the Malaysia My Second Home (MM2H) scheme be placed under the Prime Minister’s Department because the Tourism Ministry was unable to promote it effectively.
“The Tourism Ministry is focusing more on attracting tourists than ensuring the MM2H programme is successful,” he said.
By The Star
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