Financial coach Azizi Ali to give talk at Star Property Fair 2009

PETALING JAYA: Bestselling author and renowned financial coach Captain Azizi Ali is scheduled to give a talk on property investment at The Star Property Fair 2009.

The fair, which had been held in Penang for seven consecutive years since 2002, will make its Kuala Lumpur debut at the KL Convention Centre on Nov 27–29.

Azizi, author of Millionaires are from a Different Planet, will share his knowledge on how to profit from property investments on Nov 28 at noon.

“I will be talking about how to avoid potentially poor choices when it comes to purchasing properties and how to profit through property investments,” he said.

Dubbed “Millionaire Coach”, Azizi is a trained commercial pilot with over 27 years of experience.

His venture into financial writing and coaching started with a simple intention to learn more about personal finances.

“I found myself broke all the time despite earning a decent living as a young pilot. This motivated me to learn about personal finance and eventually investment.”

According to the 47-year-old, he has read more than 800 financial books and earned his first million at 36.

Azizi insisted that people needed to find the most suitable form of investment for themselves.

However, there is no denying that the profit garnered from property investment is lucrative.

An avid property investor himself, Azizi stated that becoming a millionaire was not an overnight process.

“It requires time and smart moves. But I can assure you that you don’t need money to make money. What you need are brains, dedication and discipline.”

About 25,000 visitors are expected at the three-day fair to view the latest offerings by reputable local developers.

Expect a wide range of properties from medium to medium high-range residences, luxury bungalows, exclusive condominiums as well as commercial projects.

Other attractions include auctions by CIMB Property Mart and a contest with attractive prizes worth RM20,000 to be won.

For enquiries, contact Ian Qua or Nelsen Ng at 03-79671388 ext 1165/1432.

By The Star

DNP to launch 'Le Nouvel' luxury condo by early 2011

DNP Holdings Bhd, a property development and investment group, will launch its most expensive residential project dubbed "Le Nouvel", worth an estimated RM1 billion, in Kuala Lumpur by end-2010 or early 2011.

Le Nouvel comprises two residential towers with 43 and 49 floors respectively, offering a total of 197 condominium units ranging from 1,800 sq ft to 4,700 sq ft. The towers will be built near Avenue K on Jalan Ampang.

"We have the approvals to do the project, but the current market conditions are unfavourable to a launch. A better timing would be a year from now," said DNP company secretary and general manager for treasury and accounts, Lee Kong Beng, after the company's shareholders meeting yesterday in Sepang.

Lee told Business Times that DNP may sell the buildings enbloc if it receives good offers.
"If somebody offers something we can't resists, then we will go for it. Otherwise, our plan is to sell the units individually," Lee said.

He declined to say how much each unit will be priced. Based on rough calculations if the market price maintains at RM2,200 per sq ft, each unit could sell for RM4 milion to RM11 million.

Lee also said DNP's immediate focus is to launch 25 units of luxury condominiums in a five-storey block along Jalan U-Thant, Kuala Lumpur, for some RM200 million, in three to six months from now.

DNP will also launch Block B and D of Verticas Residences in Bukit Ceylon, Kuala Lumpur, pending sales of Block A.

Verticas has four blocks, worth some RM800 million. Blocks A, B and C have 43 floors each, with 417 condominium units in total. Block D is a low-rise block offering only six units.

DNP has sold Block C to Kualiti Gold Sdn Bhd, a joint controlled entity, for RM139.7 million cash, while 100 units in Block A have been taken up since its soft launch in July.

"There are 67 units left in Block C. Once we have sold them, we will launch Block B and D immediately. This may happen early next year," Lee said.

Lee said he is confident that DNP will do better this year given the new launches and the market improving.

For the first quarter ended September 30 2009, DNP posted a net profit of RM9.81 million, up 23 per cent over the same quarter last year.

DNP, which has total assets worth RM936 million, is buying more land to expand its business and enhance shareholders' value, Lee said.

In a filing to Bursa Malaysia yesterday, DNP said it has bought 3.76ha of leasehold land in Bandar Sunway, Petaling Jaya, from an unrelated party for RM56 million cash.

Lee said DNP may build shop offices on the land, but plans are still preliminary.

By Business Times (by Sharen Kaur)

'China should stop property stimulus now'

BEIJING: China should immediately halt some of its real estate stimulus policies, or risk inflating a bubble that in its bursting would wreak financial and even social trouble, a central bank newspaper said yesterday.

Debate is heating up in China about whether and how to wind down loose monetary policy and heavy spending, with officials voicing worries about asset price rises but also fearful that the broader economic recovery remains fragile.

An opinion piece in the Financial News, a newspaper published by the central bank, said rampant speculation in the country's property market was akin to a time bomb that could threaten future growth.

"If China does not exit its stimulus policy... property prices and the market may go out of control," it said.
China's housing prices have been rising since March propelled by a slew of government measures, from lower downpayments and mortgage rates to tax cuts.

Rising prices have encouraged developers to break ground on new projects, with real estate investment up an annual 18.9 per cent in the first 10 months of the year, compared with a mere 1 per cent rise in the first two months.

While the government has welcomed this surge in building activity, which is an important pillar of the economy, some officials now worry that property development is outstripping end-user demand in some locales and that prices are not affordable for ordinary citizens.

The article noted that expectations of a wind-down in stimulus policies were, in part, driving current transaction levels. November, traditionally a slack month, had been busy as people front-loaded purchases before a value-added tax exemption expired at end of the year, it said.

Separately, a senior government researcher said that China had to place the prevention of asset bubbles at the centre of any exit strategy it devises for its broader stimulus policies.

He Fan, an economist at the Chinese Academy of Social Sciences, a top think tank in Beijing, said if the central bank raised interest rates too early, it might only serve to suck in speculative capital from abroad and drive asset prices still higher.

But if Beijing moves too slowly to absorb the vast liquidity sloshing around the economy, asset markets will turn frothy on domestic momentum alone, in turn drawing in hot money from abroad, he said in a research note.

Targeting the exit strategy at problem spots will be the way to handle this dilemma, by, for example, suppressing property price rises or slowing the pace of loan growth, he said.

But China should not tighten its fiscal policy, according to Chen Dongqi, deputy head of the macro economic research institute under the National Development and Reform Commission, China's powerful economic planner.

The People's Daily quoted Chen as saying that China must continue to implement large-scale spending for several more years to build up its social security system and stimulate consumption.

By Reuters

TA Global aims to develop more properties in Canada, Australia

KUALA LUMPUR: TA Global Bhd, the newly listed property development arm of TA ENTERPRISE BHD (TAE), is looking at further property development in Canada and Australia, beyond the current three hotels and one commercial building it has in the two countries.

From left: TA Enterprise Bhd (TAE) managing director and chief executive officer Datin Alicia Tiah, TAE deputy CEO Tiah Joo Kim and TA Global Bhd executive chairman Datuk Tony Tiah witnessing the listing of TA Global, TAE’s property arm, on Bursa Malaysia yesterday.

TA Enterprise Bhd managing director and chief executive officer Datin Alicia Tiah said TA Global is actively looking at more than just hospitality in the two countries.

“We are looking at more than the hospitality industry in the two countries. If we decide to do something, future projects in Canada or Australia would most likely take the form of joint ventures,” Tiah told reporters after the listing of TA Global on Bursa Malaysia yesterday.

In Canada, TA Global’s business assets include Terasen Centre, a 24-storey office building in downtown Vancouver, and the 193-room Aava Whistler Hotel in Whistler, a resort town north of Vancouver. In Australia, it owns the Radisson Plaza Hotel in Sydney and The Westin Melbourne Hotel.

TA Global, which was given free to shareholders of TAE as part of the group’s move to unlock value, debuted at its par value of 50 sen per share. It closed at 47.5 sen, 2.5 sen lower on a volume of 38.73 million.

Commenting on the performance of TA Global, Tiah said that the listing price was within expectations. “I would say that a lot of the shareholders got TA Global for free from their holdings in TAE. The weak holders are the ones selling now,” she added.

In the initial public offer exercise, shareholders of TAE received three TA Global shares with three irredeemable cumulative preference shares, for every five TAE shares.

“What is important is what investors think of TA Global in terms of potential. Right now, we do not have a lot of development projects launching this year.

“But next year we will be launching our Seri Suria, U-Thant and hopefully also Dutamas,” said Tiah.

Seri Suria is a shop office, office tower and serviced apartment development in Sungai Buloh, Selangor worth an estimated RM517 million in total gross development value (GDV), to be completed in October 2017. Its U-Thant project is a low-rise condominium development in Kuala Lumpur with a GDV of RM106.5 million to be completed by March 2013 while Dutamas is a residential development in Mont’Kiara, Kuala Lumpur to be completed by April 2013.

Tiah said that the first phase of development from one or more of these three projects would be launched by the third quarter of next year, adding that economic conditions would be better by next year and “there is some pent-up demand in the (KLCC) area”.

TA Global executive chairman Datuk Tony Tiah, speaking prior to the debut of the stock yesterday, said that since its listing 19 years ago, TAE has grown from being a pure financial services company into a group with interest in property development, property investment and management in five major cities across continents.

“It is appropriate at this time therefore to spin off the property arm so that TA Global can focus on property development and management.

“We are optimistic that with this restructuring, investors can better ascertain and access the merits, prospects and performance of TA Global. On listing, TA Global will immediately — in terms of market capitalisation — be one of the leading property companies in Malaysia,” he said.

He added that the group’s winning formula has been to acquire and develop land only in prime localities.

He highlighted a prime development asset of 48.06 acres (19.45ha) freehold commercial land in Sri Damansara, which was ripe for development into an iconic business, commercial and residential centre.

“We will continue to pursue this strategy,” he added.

By The EDGE Malaysia (by Loong Tse Min)

Lukewarm debut for TA Global

Property firm opens at par before shedding 5% at the close

KUALA LUMPUR: TA Global Bhd made its debut on the Bursa Malaysia main market yesterday, the same day its holding company TA Enterprise Bhd was listed 19 years ago on the main board, closing at 47.5 sen, down 5% from its offer price of 50 sen.

TA Global executive director Datuk Mohamed Abid (left), Datin Alicia Tiah and executive chairman Datuk Tony Tiah (right) at the listing ceremony on Monday.

The second most active counter for the day traded at a high of 51 sen and low of 47 sen. Some 387 million shares changed hands.

TA Enterprise managing director and chief executive officer Datin Alicia Tiah said the 50 sen opening price was “within expectations”.

“Some analysts say that TA Global is worth much more. I would say that a lot of shareholders are getting TA Global shares for free from their holding of TA Enterprise shares. I would say weak holders are the ones selling now,” she told a press conference.

The company’s initial public offering (IPO) of 460 million 50 sen shares comprised an offer for sale of 90 million shares allocated to the bumiputra public, 360 million shares for approved bumiputra institutions and investors and 10 million shares to eligible directors and employees of TA Global group and TA Enterprise group.

TA Enterprise shareholders received three TA Global shares and three preferred shares for every five TA Enterprise shares held. The preferred shares are valid for five years and are convertible from year three onwards. After the listing, TA Enterprise will have a 57.3% stake in TA Global.

TA Global is the property division of the TA Group with its primary businesses of hotel operations, property management, investment and development.

Tiah said what was important was what investors thought of the company’s potential.

“Right now we don’t have many development projects. Next year, we will be launching Seri Suria, U-Thant and hopefully Dutamas,” she said adding that these projects were scheduled to be launched earliest by the second quarter.

She said the company was actively looking to partner local and foreign landowners for projects.

“Our two main targets will be Canada and Australia because TA already has a presence there,” she said. The Avaa Whistler Hotel in Canada was scheduled to open on Nov 26 and be “in full swing by the Winter Olympics in January 2010”.

“We are looking to do more things there because we have enough local knowledge to be a success. Australia is another country we are interested to explore further other than just having a hotel as a passive investment. We are actively looking to see if we can do something more than hospitality,” she said.

In Australia, TA Global owns the Radisson Plaza Hotel in Sydney and Westin Melbourne. It also owns Terasen Centre in Vancouver, Canada.

On whether the company had plans to acquire more hotels, Tiah said : “If all things go well, we will be making an announcement at the end of the year. We are still negotiating the terms.”

By The Star

KPJ sets revenue target

KPJ Healthcare Bhd, the healthcare division of Johor Corp (JCorp), expects revenue to hit a record RM2 billion in 2012 with more hospital openings.

Its chairman Tan Sri Muhammad Ali Hashim said the group is confident of achieving the target based on the favourable performance of the JCorp Group and other business strategies including the opening of more hospitals.

"We now have 19 hospitals nationwide and are in the process of identifying locations for new hospitals," he said after the opening of the new KPJ Penang Specialist Hospital by Penang Yang di-Pertua Negeri Tun Abdul Rahman Abbas in Bandar Perda, Penang, yesterday.

Muhammad Ali said the group has been recording strong financial growth with a revenue of RM1.4 billion last year.

Under the expansion plan, KPJ Healthcare is looking at either acquiring existing private hospitals or building new hospitals.

By Business Times (by Adie Suri Zulkefli)

Bina Puri plans RM1.5b resort development

Bina Puri is in talks with local developers and foreign parties for the Kota Kinabalu project which will feature hotels, resorts, high-end condos and villas.

Bina Puri Holdings Bhd is planning a luxury resort development in Kota Kinabalu that could cost more than RM1.5 billion.

Bina Puri Construction Sdn Bhd (BPCSB) managing director Datuk Henry Tee Hock Hin, who oversees projects in Sabah, Sarawak and Brunei, said the development will feature hotels, resorts, high-end condominiums and villas.

Tee said it would be Bina Puri's first luxury development of such scale.

BPCSB is in talks with local developers and foreign parties, and a joint-venture company will be set up once all parties reach agreement.
"It is too early to say when the project will start, but we are looking at it seriously. What is important is to get the right partners in to build it together.

"We have seen a few parcels of land. BPCSB will ink some deals soon for the project," Tee said.

BPCSB will offer its expertise in design and construction, and assist the local authorities in promoting Sabah tourism, while its partners will provide the funding.

Tee said demand for luxury products in Sabah is set to improve over the next few years in line with the state government's plans to enhance tourism, education and healthcare.

"Besides the tourism project, we will continue to launch and build high-end developments in Sabah as there are fewer players in this segment in the marketplace."

Tee also said that Bina Puri, through BPCSB, will launch Phase 2 of its Jesselton condominium project in Tuaran, Kota Kinabalu, costing some RM50 million.

Phase 1, comprising 133 luxury condominium units worth RM64 million, was sold within a year of its launch at end-2006.

By Business Times (by Sharen Kaur)

PNB may turn MAS building into 5-star hotel

PERMODALAN Nasional Bhd (PNB) may convert Bangunan MAS into a business or five-star hotel and demolish the multi-level podium next to it to make way for a luxury serviced apartment tower worth a combined RM1 billion.

PNB bought the 35-storey building on Jalan Sultan Ismail from Malaysia Airlines (MAS) three years ago for RM130 million.

The building, the former MAS headquarters, is currently 60-70 per cent tenanted at an average RM3.50 per sq ft.

Its biggest tenants are Jabatan Kebudayaan dan Kesenian Negara and Syarikat Perumahan Negara Bhd, each occupying 10-12 floors.
It is learnt that PNB is finalising details of the building plans and working on getting the necessary approvals from the relevant authorities.

"It would be wise for PNB to build the apartments from scratch instead of the hotel. Once PNB has finalised the details of the plan, it would demolish the podium, maybe around the second half of 2010 to make way for the apartments," sources said.

The podium levels have a huge advantage of large floor plates boasting some 15,000 sq ft to 23,000 sq ft, enabling efficient space allocation for the apartments to generate higher returns.

On Bangunan MAS, PNB will be refurbishing the whole building while retaining the existing structures.

"The hotel will have world-class standards. It would be operated by a third party," a source said

PNB president and group chief executive Tan Sri Hamad Kama Piah Che Othman, when met at the launch of the Malaysia 1000 (Malaysia Top Corporate Directory) 4th Edition in Kuala Lumpur recently, told Business Times the redevelopment of Bangunan MAS would take place "soon".

He declined, however, to give details of the plan but said it would feature high-end products.

Meanwhile, the tenants of Bangunan MAS have yet to get any letter from PNB to vacate the building.

"If they want us to vacate, they should give us six months notice so we have time to find a new place," said the official of one company, who declined to be named.

By Business Times (by Sharen Kaur)

PKNS to accrue RM380m property sales next year

PETALING JAYA: The Selangor State Development Corp (PKNS) expects to accrue RM380mil from the sale of properties next year, said its deputy general manager (administration and development) Md Nasir Md Arshad.

He said the corporation hoped to sell RM342mil in properties this year as demand from the upper-middle class was growing.

“PKNS will continue to engage with potential customers on new projects to be launched next year through a comprehensive awareness campaign,” he told Bernama after the official sale of Kasturi Idaman apartments here on Saturday.

Under the “luxury and comfortable” campaign set for next year, Md Nasir said the corporation aimed to sell 314 residential property units in Alam Nusantara, Shah Alam, with prices starting from RM335,000.

He added that PKNS also planned to offer semi-detached luxury residential units in Kota Damansara with prices starting from RM1.2mil.

Earlier, Md Nasir said the Kasturi Idaman project, launched in June 2007 and scheduled for completion in March 2010, would have a gross development value of RM42mil. “Eighty five per cent of the project is completed and everything is on schedule.” he said.

By Bernama

TA Enterprise not keen to venture into investment banking

TA Enterprise Bhd (TAE) does not plan to enter the investment banking business now, said its chief, citing concerns over costs and returns in the crowded sector.

Group managing director and chief executive officer Datin Alicia Tiah said the premium to apply for a investment banking licence was costly compared with the amount of work in Malaysia.

TAE would have to pay RM52 million if it wants an investment banking status.

"It doesn't make economic sense to pay that much premium to be an investment banker, especially when the field is overcrowded and there are not enough jobs to go around.

"I am not saying we won't apply for a licence at all as the situation could change in the future. If there is business to do and money to be made, I may do it," she said.
TAE's stockbroking rivals such as OSK Hwang-DBS and K&N Kenanga started operating as investment bankers in 2007, while ECM Libra started investment banking operations in February 2008.

Its focus now is to expand its stockbroking arm and it may do venture capital as well.

"We will evaluate the market situation before we do things. If the timing is not right, I will not do what is not right then," she said in an interview with Business Times in Kuala Lumpur.

Stockbroking contributes around 70 per cent to the group's net profit and revenue, and will continue to do so in the coming years.

TAE, which has stockbroking operations here and Hong Kong, is also looking to invest in China.

The group also has interests in TA Futures, which is a licensed futures broker and asset management.

By Business Times (by Sharen Kaur)

TA Global opens at par in market debut

TA Global Bhd made its maiden debut on Bursa Malaysia today but opened at par with its offer price of 50 sen with 2.96 million shares changing hands at the opening bell.

Non-Executive Director Datin Alicia Tiah said the opening price was within the group's expectation.

"We are confident the stock has much greater value than its current trading price. It is not reflective of the true value of the company," she said after the company's listing today.

As of mid-day, the share price slipped to below par at 48.5 sen and stay unchanged as at 3.45pm.
Under the IPO, the company offered 460 million shares of 50 sen each, or 12.78 per cent of the company's enlarged issued and paid-up share capital of 3.6 billion shares and 1.2 billion irredeemable convertible preference shares (ICPS).

Businesses under TA Global include hotel operations, property management, construction, property investment and property development.

Upon listing, Alicia said TA Global would look for more joint venture projects in the domestic and international market.

"We already have presence in Canada and Australia. We believe we have enough local knowledge to become a successful property development group.

"TA Global is looking at strengthening our presence there with more joint ventures in property development. We want to invest further in Canada and Australia," she added.

Currently, in Canada, TA Global owns Terasen Centre, a triple A office building, and the four-star Aava Whistler Hotel. In Australia, it owns the five-star Radisson Plaza in Sydney and the Westin Melbourne.

TA Global aims to launch an office tower and service apartment project in Sri Damansara, condominium development in Ampang and residential development in Mont'Kiara.

Alicia said the company was planning to launch the first phase of the shop office project by the second quarter or third quarter of 2010.

The office tower and serviced apartment project in Sri Damanara, with a gross development value of RM517 million and RM218 million, respectively, is expected to be launched by May and September next year.

Meanwhile, the 106.5 million low-rise condominium project in U-Thant will be launched in October while Phase 1 of the residential development in Mont'Kiara is scheduled for launch by November.

By Bernama

Luxury bungalow in hillside setting

MUTIARA Goodyear Development Bhd plans to launch an integrated high-end development project in Taman Melawati by 2010 and has spent RM70mil to prepare the site.

Mutiara Goodyear deputy CEO Alex Chiang (left), Hamidon Abdullah, GM sales and marketing Gerald Wong (right) at the Prime Avenue development.

According to chairman Hamidon Abdullah the project, which sits on 32ha is located at a scenic hillzone area and set to “become a better alternative than Kenny Hills (Bukit Tunku)”.

“We intend to create a new high-end community with Melawati Nadayu,” he enthuses.

The project is strategically located as it is accessible via major highways and is 25 minutes away from KL city. It will comprise 142 units of high-end bungalows and 46 units of superlink homes and located at close proximity to modern conveniences and an International School.

“This township would be different; most bungalow townships are set in small pockets with maximum units of 50-60 bungalows in the area,” he says, adding that Melawati Nadayu is all about luxury bungalows in a hillside setting.

Hamidon adds that the company is mindful of the safety aspects of hillzone properties as it prepared the earthwork and infrastructure at the site.

“The site will be proper and it will be well blended within the environment. Most important the site will be safe.

“It is a hill area and there are concerns. But we are a responsible developer. It has taken us two years to prepare the site and we were overly critical in addressing the terrain,” he adds.

Quite clearly, he is optimistic about the property market for high-end residential properties: “We know we are addressing a smaller group of people. The market in this region is doing well. Recent launches of property market worth RM4mil-RM5mil are doing well. The market is there and it is expanding.”

Meanwhile, Mutiara’s Prime Avenue project at Dataran Prima is poised to become a hotspot for work and play.

In what he calls a “new manifestation of space”, he says the concept originated from a shoplot but has taken a different twist. Prima Avenue boasts beautiful landscapes and ample space for people to congregate.

“While today it is a medium-end location, it could very well be a high-end in time to come,” he points out.

Prime Avenue is accessible via three different routes, New Klang Valley Expressway, Lebuhraya Damansara-Puchong Highway, Sprint Highway and Federal Highway.

Developed by Puncak Kencana Sdn Bhd, a wholly owned subsidiary of Mutiara, the project takes up 1.36ha of freehold tract within Dataran Prima.

“Mutiara’s expertise is in acquiring sites which were previously not considered choice locations and transforming them into up-market and high-value property investments,” he says, adding that it plans to launch RM1.5bil properties starting from November till end-2010.

Prime Avenue will consists of two office towers development with a total GDV of RM122mil comprising 342 office suites as well as 33 double-frontage shop office duplexes housed in a retail podium called The Tube.

Each tower will house 171 office suites on 12 levels, while the rest will be parking lots. Units are priced from RM174,000.

The single-level executive suites come with built-up of between 603 sq ft and 1,635 sq ft, while duplex business suites have built-ups from 1,186 sq ft to 3,250 sq ft. Phase 1 is 85% sold and phase 2 is open for sale now.

By The Star (by Eileen Hee)

SunwayMas seeks to be prominent high-end player

SUNWAYMAS Sdn Bhd, the property arm of Sunway Holdings Bhd, is looking to stamp its mark as a prominent high-end developer, says executive director Andy Khoo.

“The economic downturn has not had much of an impact on the high-end segment. Property prices within this segment have even escalated,” he tells StarBizweek.

Khoo is clearly optimistic about the prospects for the local property sector in 2010.

Andy Khoo at the site of its Sunway Rydgeway in Melawati Heights

“Market sentiment is on the rebound. There is good liquidity in terms of transactions and this should augur well for the property market next year.”

He says SunwayMas would be focusing on integrated commercial developments for 2010.

The boutique developer currently has two ongoing (integrated commercial development) projects within the Klang Valley – Sunway PJ@51a and Bangi Integrated Commercial Centre (BICC).

Sunway PJ @51a will comprise 88 office suites, 11 retail outlets and six showrooms. Located next to Cycle & Carriage, the development is accessible via the Federal Highway, Jalan 225 via Jalan SS9A and New Pantai Expressway.

The company says its BICC project will be a “first-of-its-kind” development in Bandar Baru Bangi, comprising dual frontage, four-storey shop offices.

“Both projects are under construction and the progress has been healthy,” Khoo says, adding that SunwayMas was also looking for opportunities to embark on other projects within the Klang Valley.

“We have about 120ha of undeveloped landbank there and we are always looking for opportunities. We are also constantly looking for landbanks,” he says.

SunwayMas has commenced work on its first high-end residential development in Melawati Heights.

Called Sunway Rydgeway, the project will comprise 40 bungalows and 30 semi-detached homes with a gross development value of RM180 when construction is completed in 2011.

Khoo says the project is 20% complete and the semi-dees have been snapped up while only six bungalows are remaining.

“We felt that it (Melawati) was a nice area to build a boutique development. It is a matured township, but there were still pockets of undeveloped land and we ceased the opportunity to embark on our own project,” says Khoo.

Inspired by the word ‘ridge’ which refers to a place on elevated ground, Sunway Rydgeway overlooks a quartz ridge.

Khoo notes that potential purchasers and investors were cautious about hill-slope developments after the landslide disaster at Bukit Antarabangsa earlier this year). However, he ensures that the homes were safe to inhabit.

“Our projects are on flat, elevated land,” he says, adding that the encouraging take-up rate experienced to date clearly indicated that the design and concept of the homes were what purchasers have been looking for.

A lot of effort was put into maintaining and conserving the natural environment and surrounding landscape, Khoo says.

Security features at Sunway Rydgeway will include an external fibre option CCTV system, home alarm system and unlimited intercom system between the residents.

On another note, Khoo says the Government’s proposal to reimpose the real property gains tax (RPGT) of 5% effective Jan 1 could have an impact on the secondary market.

However, he adds that buyers and investors should be happy that the RPGT was capped at 5% and not higher.

By The Star (by Eugene Mahalingam)

Star Property Fair makes KL debut

The Star Property Fair will make its debut in Kuala Lumpur on Nov 27. The three-day fair will be held at the Kuala Lumpur Convention Centre.

Themed “Stylish Living”, the fair will showcase wide-ranging property developments, including superbly-designed condominiums, luxurious bungalows and affordable link houses, to cater to everyone.

There will also be public auctions by CIMB Property Mart that feature many noteworthy properties.

Big names in the country’s property development landscape will showcase their projects namely SP Setia Bhd, Sime Darby Bhd, Sunway City Bhd, Lucky Bright Star Sdn Bhd and KH Land Sdn Bhd.

Visitors will also have the opportunity to obtain advice on financing options from participating financial institutions, and attend talks and forums by industry experts on property investment, feng shui and home aspirations.

Renowned bestselling Malaysian author and speaker, Captain Azizi Ali, will be sharing his secrets on how to be a property millionaire. There will also be a special guest appearance by supermodel Amber Chia and her interior designer Edwin Cassian, where they will talk about the design and theme of her home and also provide tips and ideas on interior design.

There will be a contest for visitors with prizes worth over RM20, 000 to be won.

Interested home buyers or property investors should therefore mark their calendar for the upcoming Stylish Living Star Property Fair 2009. For more information on the fair, log on to www.starproperty.my.

By The Star

A night to remember

It was a prestigious night as the creme de la creme of the country’s property sector were honoured at the International Real Estate Federation (FIABCI) Malaysia Property Award 2009 on Monday.

Dubbed the “Property Oscars” by industry players, the highlight of the night was the ‘Property CEO of the Year’ award that was bagged by Malaysian Resources Corp Bhd (MRCB) group managing director Shahril Ridza Ridzuan, who humbly attributed the win to his MRCB team.


MRCB group MD Shahril Ridza Ridzuan with his Property CEO of the Year award.

“I am very thankful to my team at MRCB who are instrumental in me winning this award. It is a testimony to all the hard work done by them. I am just lucky to be their CEO at this point in time,” he said.

“This will also give my team a lot of motivation going forward in terms of the business and improving the (quality) of the properties for the future as well,” said Shahril.

No less important were the six other awards that were presented the same night to some of the top property developers in the country.

The winners were UEM Land Bhd’s Puteri Harbour in Nusajaya, Johor (Master Plan Category); SDB Properties Sdn Bhd’s Park Seven in Kuala Lumpur (Residential Development – high rise); Perdana ParkCity Sdn Bhd’s Adiva in Kuala Lumpur (Residential Development – low rise); Boustead Curve Sdn Bhd’s The Curve, Mutiara Damansara in Petaling Jaya (Retail Development); Menara Hap Seng Sdn Bhd’s Menara Hap Seng in Kuala Lumpur (Office Development Category) and MRCB’s Sooka Sentral in Kuala Lumpur (Purpose-Built Project).

Boustead Curve’s director Datuk Ghazali Mohd Ali said winning the award was another milestone for the company.

“I believe that winning is not the end. It’s a journey we have to go through from now on.”


Boustead director Datuk Ghazali Mohd Ali with his award for Boustead Curve Sdn Bhd’s The Curve.

Perdana ParkCity group chief executive officer Lee Liam Chye was clearly thrilled.

“It’s a recognition for some of the ideas we’ve been doing for ParkCity. FIABCI has stature in the market. Winning it is a recognition by our peers that we did something extraordinary for the particular year.”

The event was held in a glittering ceremony at The Shangri-La Hotel, Kuala Lumpur.

It was graced by the Sultan of Selangor, Sultan Sharafuddin Idris Shah and attended by local and foreign guests.

The 2009 Malaysia Property Award was organised by FIABCI Malaysia, with Malayan Banking Bhd as the official sponsor.

The emphasis for this year’s event was “Intrinsic Value in Holistic Living”.

Winners of the Malaysia Property Award in their relevant categories will represent Malaysia next year at the International Prix d’Excellence in Bali, Indonesia.

By The Star (by Eugene Mahalingam, Edy Sarif, Leow Yong May and Lavonne Cheah)

Property investments – the leverage factor

Is property a good investment? Many Malaysians are likely to respond with a resounding “YES!”

In fact, if you were to ask anyone who had suffered equity losses, they would most certainly reply that they wished they had bought one more condominium unit in Mont Kiara or taken up the beautiful service-apartment in KLCC two years ago. For many Malaysians, property investing is not a new thing. There are people who would rather buy a property than put their money in other investments. And some wealthy individuals have even come together to develop small-scale property projects.

Properties seem to be keeping up in terms of value, especially if you have the holding power and the location is good. And more importantly, a property is tangible – you can look, touch and even smell them literally.

Why is property investing such an investor’s darling? Many die-hard property investors would say that they make money and receive rental income through their property. So investing in a property does indeed sound like a good buy.

However setting aside the benefits, there is one thing that many are generally unclear about: property investing comes with significant leverage benefit – that is, buying a property that is worth a lot more than what is paid at the onset. Most of the time, a property investor does not have to pay 100% of the property price because one would take a property loan from a bank. For example, if you take a loan with a margin of 80%, a RM1mil house would actually cost you RM200,000 upfront. The remaining 80% is paid off through regular mortgage payments.

On average, a property loan lasts for about seven to eight years, even though the legal tenor is 20 or 30 years. It is conceivable that a few things may happen within these seven to eight years, for example, the buyer of the property sells the property, or reduces his loan liability through pre-payment.

Using the previous example, let us assume that the price of the property has increased to RM1.2mil in three years. The total investment cost is the initial investment of RM200,000 plus other fixed costs. So the gross profit is RM200,000, or 100% based on the initial upfront payment. Of course, the net profit will be lower, depending on the fixed costs incurred for mortgage interest, legal costs, et cetera.

It is not uncommon for very serious property investors (and speculators) to pay only 10% upfront and take out a loan for the remaining amount. At 10%, the leverage is ten times! This means that if you make a 10% profit on the property value, the leverage would equate to ten multiply by 10% or a total of 100%, before deducting the cost of borrowing. The converse is true, if you have to sell your property at a 10% loss in value, you may not recover enough from the sales proceeds to pay off your outstanding loans. In such cases, you would have effectively lost your initial upfront investments plus all the associated costs.

One of the true dangers in using leverage is linked to the cashflow level of the investor. If you are financially strong, you can continue to hold on to the property even during the downturn. And if there is good rental income, you can further sustain the mortgage repayment. However, if you cannot repay the mortgage, the risk is possibly foreclosure. The United States is a good example where many mortgagees could not afford to service their loans as interest rates rose. Creditors had to foreclose and force-sell properties to recover the outstanding loans.

When dabbling in property investing, it is noteworthy to understand and take note of the leverage factor or loans taken up. The effects are not very different from margin investment. A quick reflection on past market turmoils like the 1997-1998 crisis will enable one to immediately understand that leverage cuts both ways – magnifying the profits and losses.

After all, property investing, like any form of investment, can be profitable and carry risks at the same time.

So before you jump into purchasing your next property, do bear in mind this leverage effect.

Tay is senior vice-president and senior head of UOB’s personal financial services division.

By The Star (by Tay Han Chong)

'Make George Town innovation hub'

PENANG should make its historic downtown area in George Town a centre of innovation, said a World Bank economist.

By housing research institutes and post-graduate institutions in the area, World Bank economic adviser Dr Shahid Yusof yesterday said that the island state can lure foreign students to its shores.

"As Penang repositions herself, intellectual hotspots in the downtown area can make Penang an attractive place, especially to students from overseas," he said during a talk at the Wawasan Open University in Penang.

The lecture is part of a series of regular talks in Penang organised by Khazanah Nasional Bhd.
George Town's heritage enclave, which has been inscribed on Unesco's World Heritage List, is currently home to a pool of heritage-rich buildings, many of which would be suitable for learning institutions.

Apart from financial houses that have sited their premises in the historic buildings, education institutions like the British Council and George Town College are found in pre-war premises.

In his talk, Shahid, who is an expert on development issues, said that a big policy change is needed to re-energise industrialisation in countries where it has slowed, and to "nudge" it in directions with the brightest long-term prospects.

"The least controversial elements of industrial policy," he noted, "encompass building capacity in areas conducive to industrialisation.

"Capacity is especially critical in transport, telecommunications and energy infrastructure, technical and scientific skills and research," he said.

He said universities have to play a key role in producing quality talent. "There is also a need for these learning institutions to co-exist with some kind of research institutes or think-tank."

By Business Times (by Marina Emmanuel)

Brisk sales for HSL’s first gated residential area

KUCHING: Hock Seng Lee Bhd (HSL) has sold some 70% of high-end houses within a week of the launch of its first guarded-and-gated residential estate near Kuching International Airport.

Group managing director Datuk Paul Yu Chee Hoe said the project, The Leaf, had a gross development value of RM33mil.

The proposed estate comprises 34 units of semi-detached houses priced between RM700,000 and RM1mil while the 20 terraced houses are sold for RM470,000 each.

The project is due for completion by the end of next year.

“Thousands of visitors have come to see the showhouse since the launch on Nov 7.

“The development is based on a new concept, with a focus on security and landscaping,’’ Yu said yesterday.

The project is undertaken by wholly-owned subsidiary Hock Seng Lee Construction Sdn Bhd.

Yu said the company’s two other residential developments – Lavender Hills (64 units) and Samariang Aman (642 units) had virtually sold out.

Meanwhile, HSL reported record revenue of RM101.7mil and pre-tax profit of RM20.7mil for the quarter ended Sept 30, 2009. This was the first time that its quarterly revenue had exceeded RM100mil.

Group chairman Datuk Idris Buang said the latest quarterly results showed a 28% jump in revenue and 39% increase in pre-tax profit compared with the same period last year.

“With the economic stimulus packages and Sarawak Corridor of Renewal Energy projects flowing down to the tendering stage, we are hopeful of more (job) opportunities,” Idris said in a press statement.

He said the group now had RM1.8bil worth of projects in hand, with RM1.25bil unbilled.

HSL is implementing phase one of the proposed Kuching central wasteway management system, which is expected to take four years to complete.

The entire project will be carried out in four phases and will cost about RM2bil, according to the state government.

By The Star (by Jack Wong)

Axis REIT plans to buy seven warehouses for RM96mil cash

PETALING JAYA: Axis REIT Managers Bhd (ARMB) has proposed to buy seven warehouses in Klang and Seberang Prai for RM96mil from IDS Logistics Services (M) Sdn Bhd.

ARMB said in a statement the sale and leaseback deal comprised five warehouse buildings located in Bukit Raja, Klang, on two pieces of freehold land, while two more were in Seberang Prai, Penang, on separate pieces of leasehold land.

The acquisition was for a total cash consideration of RM71.75mil and RM24.25mil respectively, it said.

The Klang property is located in Bukit Raja Industrial Estate, a premier industrial zone in that area.

The Penang properties are located within the largest industrial estate in northern Peninsular Malaysia, the Prai Industrial Estate Phase 4, about 15km from the Butterworth Ferry Terminal and Railway Station.

The deal comes with a 15-year fixed lease agreement with an option to renew for a further 15 years with IDS Logistics, the current owner and operator.

IDS Logistics is a wholly-owned subsidiary of Hong Kong-based Integrated Distribution Services Group Ltd, a logistics services provider and a member of the Li & Fung Group.

The lease agreements come with an agreed step-up in rental every three years over the 15-year period.

On completion of the acquisition, the fund will, for the first term of the lease, receive RM8mil a year in gross income.

ARMB chief executive office and executive director Stewart Labrooy said the acquisitions would provide a steady income and contribute positively to its earnings next year.

These new acquisitions will also see the company’s assets under management rise to over RM900mil.

By The Star

Gadang bidding for projects worth over RM2b

GADANG Holdings Bhd, a construction and property development firm, is bidding for more than RM2 billion worth of projects in the country, which include works for the new low-cost carrier terminal in Sepang and the gas-fired power plant in Kimanis, Sabah.

The bidding period for both projects will close by next month.

"With the company's past track record and strength in this field, we hope to secure some works from the projects we have bid for," managing director Tan Sri Kok Onn said after the group's annual general meeting in Kuala Lumpur yesterday.

On its water business project in Indonesia, Kok said revenue is expected to rise by 50 per cent for the current fiscal year ending May 31 2010, from RM11.4 million a year ago.
In the next three to five years, Gadang will see water business contribute RM40 million to its revenue once the expansion plans come into place. "We are eyeing Vietnam and China next to expand our water business," Kok said.

The group's property business stands at a gross development value of RM630 million, which will keep it busy for the next five years.

For the financial period ended May 31 2009, Gadang posted a net profit of RM9.7 million on revenue of RM247 million. Net profit fell by 15 per cent compared with the same period a year ago.

By Business Times (by Zurinna Raja Adam)

YTL to rationalise RM8b retail, hotel assets into global REITs

Starhill REIT will have J.W. Marriott Hotel as one of its assets

KUALA LUMPUR: YTL Corp Bhd will embark on restructuring its RM8bil real estate investment trust (REIT) and its hotel portfolio.

This will rationalise the group’s retail and hotel asset portfolios by repositioning Starhill REIT as a global hospitality REIT.

It will involve the disposal of its two retail properties, Starhill Gallery and its parcels in Lot 10 to YTL Starhill Global REIT in Singapore.

“This will be followed by the injection of new hotel assets to put Starhill REIT on the path towards becoming a full-fledged international hospitality REIT,” said YTL Corporation in statement yesterday.

The disposal consideration for the retail properties is RM1.03bil that was determined based on independent valuations.

YTL Corp said after the proposed disposal, Starhill REIT would be well-positioned as a global hospitality REIT with two assets under its portfolio, namely the J.W. Marriott Hotel as well as 60 units of service apartments, four levels of commercial podiums and two levels of car parks at The Residences at the Ritz Carlton in Kuala Lumpur.

YTL Corp managing director Tan Sri Francis Yeoh Sock Ping said this exercise would restructure the RM8bil in retail and hotel assets under its control into two distinct REIT portfolios, namely the hospitality REIT in Malaysia and retail-centric REIT in Singapore.

“This will benefit both REITs in terms of pursuing growth and development strategies in terms in a single and focused class of assets.

“On the completion of the rationalisation, Starhill REIT in Malaysia will be transformed into a pure-play vehicle for hotel and hospitality-related assets,” said Yeoh, who is also the chief executive officer of Pintar Projek Sdn Bhd, which manages Starhill REIT.

Yeoh said hotel assets with the potential to be injected into Starhill REIT would include Pangkor Laut, Tanjong Jara and Cameron Highland resorts, Ritz-Carlton Kuala Lumpur and the remaining part of The Residences, among others.

“From a global standpoint, we see potential for Starhill REIT to acquire high-end assets in key-international hot-spots in Bali, Saint Tropez and Phuket,” he said.

Meanwhile, Yeoh said Starhill Global REIT had embarked on the acquisition of David Jones Building in Perth, Australia.

By The Star

YTL to streamline REITs here, S'pore

YTL Corp Bhd plans to streamline RM8 billion worth of hotels and retail malls it controls in Asia-Pacific into two specialised real estate investment trusts (REITs) in Singapore and Malaysia.

Starhill REIT, listed on Bursa Malaysia, will ultimately own only the hotels under the YTL group, while the Singapore-listed Starhill Global REIT will focus on retail malls when the revamp is completed in six months.

The move makes it easier for analysts to rate the stocks and investors will be clearer about the property trusts' intention when they expand globally.

YTL Corp managing director Tan Sri Francis Yeoh made it clear during a media briefing in Kuala Lumpur yesterday that the two REITs are set to grow internationally with an Asia-centric strategy. Among others, Starhill REIT may buy more brands in the hotel and hospitality sector.

"This is the time to buy more brands because the world has not fully recovered yet. There are still low hanging fruits to be plucked," Yeoh said.
As part of the revamp, Starhill REIT will sell the two shopping malls in its portfolio - Starhill Gallery and Lot 10, both located in downtown Kuala Lumpur - to Starhill Global REIT for RM1.03 billion.

This will leave it with JW Marriot Hotel Kuala Lumpur and part of The Residences at The Ritz-Carlton serviced apartments, also in Kuala Lumpur, worth a combined RM400 million.

Subsequently, Starhill REIT will use the proceeds from selling the malls to buy other Malaysian hotels under the YTL group, which will boost the asset size to RM1.6 billion. It can also take on more debt for this since its current debt-to-assets ratio is only 13 per cent.

These assets are the remaining 54 apartments in The Residences, luxury hotel The Ritz-Carlton Kuala Lumpur, Pangkor Laut Resort in Perak, Tanjung Jara Resort in Terengganu, Cameron Highlands Resort, The Majestic Malacca, and the three Vistana Hotels in Kuala Lumpur, Penang and Kuantan.

Potential assets to be sold into Starhill REIT in future include The Chedi Phuket, SPA Village Resort Tembok Bali and the Muse Hotel in Saint Tropez, France, which is under construction.

Yeoh pledged that the dividend yield of Starhill REIT will stay at least 7 per cent after the group's asset restructuring. There is also a plan for the REIT to pay out dividends every quarter as part of a bigger plan that allows YTL Corp to get steadier returns from its subsidiaries.

YTL currently owns 65.2 per cent of the REIT in Malaysia and 28.9 per cent of the one in Singapore. Starhill Global REIT's assets include retail malls in Singapore's famous Orchard Road and Tokyo's Roppongi area, and it is set to buy another mall in Perth, Australia, to bring the portfolio to S$2.5 billion (RM6 billion).

By Business Times (by Chong Pooi Koon)

Plenitude planning six projects worth RM280mil

KUALA LUMPUR: Property developer Plenitude Bhd plans to launch six new projects in its current financial year ending June 30, 2010, said executive chairman Elsie Chua.

“The new developments will be in the Klang Valley, Johor Baru and Sungai Petani with a gross development value (GDV) of about RM280mil, consisting mixed developments,” she said yesterday after the company’s AGM.

From left: Tan Seng Chye, Elsie Chua and Plenitude Bhd director Zukarnine Shah at the company AGM on Wednesday.

Chua said the company’s Taman Desa Tebrau project in Johor Baru would be among the new developments, where 55 units of bungalows with a GDV of about RM55mil would be launched probably by the end of this year.

Plenitude has also planned for the development of 248 units of double storey houses in Taman Putra Prima in Puchong, scheduled to be launched in March next year.

“Apart from the new launches, we are also focusing on our ongoing projects such as developing double-storey semi-Ds at Lot 88 and affordable terraced houses at Bandar Perdana in Sungai Petani, Kedah. We are also focusing on our luxury semi-Ds and a resort-style high rise condominium at Batu Feringhi in Penang,” she said.

Chua added that although Plenitude had embarked on more “exciting” projects, it would still focus on building affordable homes.

Meanwhile, executive director Tan Seng Chye said Plenitude would be interested in developing an office tower in the Klang Valley if it could find the land for it, adding that it was also open about expanding its landbank in other areas.

“Our focus will continue to be in Johor Baru, the Klang Valley and Penang. However, if we managed to find some other viable places, then we may go for them,” he said, noting that Plenitude currently had more than 1,800 acres of strategic development land.

On the outlook of the property industry, Tan observed that there had been some pick-up in the market starting from the second quarter of this year, and said that “we are cautiously optimistic with the outlook next year and with some plans by the Government to support the industry, it will help a lot to (lift) the market.”

By The Star (by Edy Sarif)

Plenitude interested in building office towers

Property developer Plenitude Bhd said it wants to build office towers if it can buy strategic land, namely in Kuala Lumpur's commercial centre.

"Yes, we are considering that (to build office towers)," executive director Tan Seng Chye told pressmen after the company annual general meeting in Kuala Lumpur yesterday.

Plenitude, which typically builds affordable houses, has set up a business development team to do this.

Tan said Plenitude's present land areas are mainly for residential developments and are not in locations where office blocks can be built.

"But if we find a piece of land in the Kuala Lumpur commercial centre then we will build office towers," he added.
Plenitude aims to add more acreage to its 404.7ha land area with focus mainly in Johor, Penang and the Klang Valley.

Meanwhile, executive chairman Chua Elsie said Plenitude has outlined up to six new launches next year with a total gross development value (GDV) of RM280 million for the year to June 30, 2010.

The new projects include the first ever bungalow development in Taman Desa Tebrau, Johor, and on going projects at Taman Putra Prima, Selangor, as well as Lot 88 and Bandar Perdana in Sungai Petani, Kedah.

Taman Desa Tebrau township's first bungalow development includes 55 units of 21/2-storey bungalows in Phase 12B, with a GDV of RM55 million.

"We have another 212.8ha of undeveloped land in the township that has been earmarked mainly for terrace houses," she said.

In March next year, the company plans to launch 248 units of 2-storey, 22 x 65ft terraced houses in Phase 8B of Taman Putra Prima, says Chua. The development has a GDV of RM80.95 million.

Taman Putra Prima still has some 89ha of undevelo-ped land.

Next year, it plans to launch double-storey terrace houses and semi-detached units in Lot 88 in Kedah.

Meanwhile, group general manager for sales and marketing Khaw Hock Seang said Plenitude is re-planning its Bandar Perdana project in Kedah.

"We are planning to put in a newer product mix into the development," said Khaw, adding that double storey semidees as well gated and guarded units could be in the offering.

By Business Times (by Rupinder Singh)

TA Enterprise to acquire another hotel next month

Financial services and property development group TA Enterprise Bhd (TAE) expects to acquire another hotel by next month, said its group managing director and chief executive officer Datin Alicia Tiah.

The planned acquisition comes on the heels of a RM636 million deal to buy over Singapore's Quayside Gem Ltd, which owns the Swissotel Merchant Court in the republic, which is slated to be concluded by the end of this month.

"There will be another hotel acquisition before the end of this year," said Tiah at the company's extraordinary general meeting in Kuala Lumpur yesterday.

The four-star 476-room Swissotel is the fourth property purchase by TAE in the past 12 months.
From December last year to September, TAE paid almost RM515 million to buy properties in Canada, Australia and Malaysia.

Tiah said TAE will spend S$5 million (RM12.15 million) over the next five years to upgrade Swissotel, without disruptions to its hotel operations or bottom line.

She added that the hotel will also be transferred to its property arm TA Global Bhd, which is en route to a listing on the Main Market of Bursa Malaysia on November 23.

"We will transfer Swissotel to TA Global for cash or in exchange of TA Global shares, after the listing," Tiah said.

TAE has folded all its property assets, including Aava Whistler, Westin Melbourne and Radisson Plaza into TA Global prior to the prospectus launch.

On the return on investment on the asset acquisition, Tiah said TAE bought Swissotel with a yield of 7.6 per cent.

"There is guaranteed ebitda (earnings before interest depreciation taxes and amortisation) of S$19 million (RM46.17 million) over the next four years. I believe Singapore will recover and room rates will move upwards next year. These will enhance earnings," Tiah said.

Last year, Swissotel made a net operating profit of S$20 million (RM48.6 million) on revenue of S$53 million (RM128.8 million), with an average occupancy of 78 per cent.

Tiah said the hotel acquisition is expected to bring synergistic benefits to the TA group as it will further enhance TAE's hospitality operations in major cities around the world and increase the company's existing portfolio of hospitality properties.

By Business Times (by Sharen Kaur)

TA sees jump in hotel earnings

KUALA LUMPUR: TA Enterprise Bhd expects earnings from its hotel operations to triple next year following the completion this month of the acquisition of its fourth hotel, the Swissotel Merchant Court Singapore.

Datin Alicia Tiah ... ‘The injection will see better synergistic management.’

“There will be four hotels contributing to the segment from Nov 30 onwards and we are positive,” managing director and chief executive officer Datin Alicia Tiah said after the company EGM yesterday.

Sales from hotel operations totalled RM76.6mil, or about 14% of the group’s sales, for the financial year ended Jan 31, 2009, the company’s 2009 annual report showed.

The group, via its property division TA Global Bhd, already owns three other hotels - the Westin Melbourne, Radisson Plaza Hotel Sydney and the Aava Whistler Hotel in Canada.

Tiah said the RM635.8mil Swissotel proposed purchase, which received shareholders’ approval yesterday, would be conducted under TA Enterprise and not TA Global as the “opportunity to purchase Swissotel came in after the submission of TA Enterprise’s application to the Securities Commission for the listing of TA Global.”

TA Enterprise, which saw its share price rise more than 50% this year before softening, has consolidated all of its property assets under TA Global and the company will be listed on Bursa Malaysia on Monday.

Swissotel would be injected into TA Global post-listing, Tiah said, for “better synergistic management.”

The four-star hotel had an average occupancy rate of 78.5% last year, she said, adding that the proposed purchase came with a S$19mil earnings before interest, taxes, depreciation and amortisation (ebitda) guarantee for the years 2010 to 2013.

The ebitda guarantee is secured against a cash deposit of S$10mil held by the escrow agent, i.e. a party that has fiduciary responsibilities in the transfer of property from one party to another.

Future plans for Swissotel include an estimated capital expenditure of about S$5mil budgeted for the next five years for refurbishment and upgrade activities, Tiah said.

The budgeted capex has been taken into consideration in the pricing of the hotel.

Asked on the prospects of more acquisitions, Tiah said: “We are looking; we are always looking. There are so many distressed assets all over. The thing we look for is the right price.”

By The Star (by Yvonne Tan)

Penang raises property development charges sharply

GEORGE TOWN: The state government has imposed hefty increases in the rates for property development and change of land use in a bid to increase its revenue.

The charge for the enhancement of land value has been increased from 25% to 50% for the island and a charge of 12% introduced for the mainland, Chief Minister Lim Guan Eng announced today.

Previously, there was no charge for the enhancement of value for land under the Seberang Perai Municipal Council’s (MPSP) jurisdiction.

Besides that, the development charges for housing have been increased 300% from RM5 to RM15 per sq ft and commercial development projects from RM7 to RM21 per sq ft.

For the transfer of the right of development to another party, the state government has now fixed the fees at triple the development charges and twice the building plan fees.

There is also a new fee for rezoning.

In justifying the increases, Lim said the increase in revenue would enable the state government to carry out other beneficial projects for Penangites, including helping the lower-income group.

Speaking at a workshop on enhancing the real-estate development process, Lim said the state government had simplified many processes to ease matters related to real-estate development.

“In return, you [developers] should also assist the state government as we need to raise the rates to do more for Penangites,” Lim said.

However, he said that for developers who achieve the gold standard on the green-building index, the old development charges of RM5 for housing projects and RM7 for commercial projects would remain applicable.

Lim said that despite the global economic downturn, many approvals for planning permission were given out, but not many of these projects actually took off.

“In 2008, 216 commencement-of-work permits were issued for building plans with a gross development value of RM1.13 billion while this year, until September, permits were given for 151 projects with a GDV of RM934.63 million,” Lim added.

By The EDGE Malaysia (by Regina William)

National housing company revamping business model

The Minister of Finance Inc (MOF) has offered Syarikat Perumahan Negara Bhd (SPNB) some RM100 million to settle part of monies owed to contractors, according to sources.

The national housing company owes between RM250 million and RM300 million to 35 Class A Bumiputera contractors hired to develop 35 projects across the country, involving 35,583 low-cost and affordable units.

A source told Business Times that SPNB will have to look for its own funds or loans to pay the contractors the remaining sum.

A task force, headed by the MOF, has been set up to look into the matter as the contractors have not been paid for the houses built since late last year.
"There is an oversupply. SPNB had overlaunched the projects when demand was low. It is unable to pay the contractors as sales are not moving. People are not buying because the houses are in rural areas, far from basic infrastructure," the source said.

It is understood that SPNB's management, headed by new managing director Kamarul Rashdan Salleh, is re-strategising the company's business model.

"SPNB will guarantee that the 35 projects will go on. It will work out a plan to resolve the issue amicably," the source said.

In addition, SPNB has received some RM200 million from the government to build houses across the country under the affordable housing and "Rumah Mesra Rakyat" programmes.

The latter is for families with a household income of RM1,500 and who have land on which SPNB can build them a house.

The landowners can take loans from SPNB with minimal monthly payments.

The government will also subsidise one-third of the construction cost.

By Business Times (by Sharen Kaur)

K Residence condo units sold out

OLYMPIA Industries Bhd, through its wholly owned subsidiary KL Landmark Sdn Bhd has sold all of its 188 units of K Residence condominium, generating gross sales of RM483.3 million last year.

Foreign investors made up about half of the buyers of the 50-storey condominium, it said in a statement to Bursa Malaysia.

By Business Times

Ahmad Zaki wins RM309mil job

KUALA LUMPUR: Ahmad Zaki Resources Bhd has secured a project from the Public Works Department worth RM309.4mil to build a complex along Jalan Sultan Salahuddin, Kuala Lumpur.

In a statement to Bursa Malaysia yesterday, Ahmad Zaki said the works were to be completed from Dec 1, 2009 to May 28, 2012.

It added that the project was expected to contribute positively to the group’s earnings and the net tangible assets for the financial years ending 2009 to 2012.

KUALA LUMPUR: TRC Synergy Bhd’s subsidiary TRC Land (Cambodia) Ltd is acquiring a 26% stake in a Cambodian construction and property development company, Delta Garden Ltd, for US$1.95mil.

In a filing with Bursa Malaysia yesterday, TRC said it had signed a sale shares contract with Liv Sopheaktra, for the transaction. It said Delta was currently constructing 123 residential units and a club house in Phnom Penh.

TRC said it considered the investment strategic as there was a healthy demand for quality homes in Phnom Penh and Delta had a substantial land bank.

It added that it was confident of securing construction contracts there, given its extensive experience in public works construction, major civil engineering works and property development.

By The Star

MICE industry boost

The government, through a private financing initiative, is partnering Naza TTDI KL Metropolis Bhd to build the country's largest exhibition and convention centre in Kuala Lumpur.

The RM628 million premier convention centre, which will take the shape of a rubber seed, will be known as Matrade Centre, as it will be sited next to the existing Menara Matrade on Jalan Khidmat Usaha, off Jalan Duta.

Slated for completion in 2014, the groundbreaking ceremony is expected to take place in the first quarter of next year.

A privatisation agreement was signed between the government and Naza TTDI yesterday, witnessed by International Trade and Industry Minister Datuk Mustapa Mohamed.

Mustapa said the government is providing a land swap in the project for the centre.
"It has been estimated that in 10 years, the whole project would create a GDV (gross development value) of RM15 billion," he told a media briefing after the signing ceremony in Kuala Lumpur yesterday.

He said Malaysia currently lags behind neighbouring countries in developing its meeting, incentive, convention and exhibition (MICE) industry, but as a trading nation it needs to enhance export promotion activities.

"We have been promoting MICE in the past but we were constrainted from going for large-scale conferences of 5,000 to 10,000 participants due to space limitation."

Located along Jalan Duta, the proposed 1 million sq ft centre will be linked to Menara Matrade, and will offer a suitable venue to host major heavy industries and advanced technology exhibitions.

It will fulfil demand for ongoing events such as the Defence Services Asia Exhibition and Conference, the Malaysian International Furniture Fair, the Malaysia International Halal Showcase and the International Trade Fair Malaysia.

"Built to international standards and specifications with state-of-the-art facilities, it will further strengthen Kuala Lumpur as the choice MICE destination in the region," said Mustapa.

Naza TTDI Sdn Bhd chairman SM Nasarudin SM Nasimuddin said several architects, including international ones, are currently bidding for the masterplan to develop the 5.24ha site, which will include hotels and shopping malls.

He said the total gross floor area of 1 million sq ft is at par with similar exhibition centres in Thailand and Singapore.

Its three floors of exhibition hall will have a column free space of 30m to 60m wide.

On financing, he said, it will be internally sourced and tapped from domestic banks.

By Business Times (by Rupa Damodaran)

Naza arm to get 65 acres in exchange for building RM628mil centre

From left: S.M. Nasarudin S.M. Nasimuddin, Datuk Mustapa Mohamed and Deputy International Trade and Industry Minister Datuk Mukhriz Mahathir viewing a miniture model of the Matrade expo centre.

KUALA LUMPUR: Naza Group has entered into a building-for-land deal with the Government which will see it receiving 65 acres of prime land in Kuala Lumpur for building a RM628mil expo centre for Malaysia External Trade Development Corp (Matrade).

The centre and other projects planned on the land would have a combined estimated gross development value of RM15bil over a 10-year period, said International Trade and Industry Minister Datuk Mustapa Mohamed.

Naza Group joint group executive chairman and Naza TTDI Sdn Bhd chairman S.M. Nasarudin S.M. Nasimuddin said it would embark on a “comprehensive development” on the 65 acres that would surround the expo centre.

“We have four international architects bidding for the master plan and it should be finalised in mid-December.

“We plan to build shopping malls, hotels and offices,” he said after the agreement signing ceremony yesterday.

The site would be leased to Naza for 99 years.

Naza TTDI, the property arm of the Naza Group, yesterday signed a privatisation agreement via subsidiary TTDI KL Metropolis Sdn Bhd with the Government and Syarikat Tanah dan Harta Sdn Bhd (a Minister of Finance Inc company) for the land-for-construction swap.

Naza TTDI group managing director S.M. Faliq S.M. Nasimuddin said financing for the construction of the expo centre would be via a combination of internal funds and bank borrowings.

“We are speaking to a few banks,” he said.

Construction of the Matrade expo centre is expected to begin in the second quarter next year for completion in 2014.

With a gross floor area of one million sq ft, it will be the largest exhibition and convention centre in Malaysia.

The building will have three floors of exhibition space that will house 12 halls. It will be located along Jalan Duta and linked to Menara Matrade.

Mustapa said the Matrade expo centre would become an epicentre for meetings, incentives, conventions and exhibitions (MICE) activities.

“We depend on trade and MICE is a growing business. We need the right kind of facilities to attract exhibitions and investments into the country.

“In terms of facilities, we are still lagging compared with many other countries,” he said.

Mustapa said the new centre would be ideal for hosting very-large-scale exhibitions that existing centres in Malaysia could not accommodate.

“The centre is expected to fulfil the demand for bigger local and international events such as Defence Services Asia Exhibition and Conference, Malaysia International Halal Showcase and International Trade Malaysia.

“This is an important venture to stimulate investments into the country. Hopefully, Malaysia will do a better job in attracting more MICE activities,” he said.

By The Star (by Eugene Mahalingam)

Players: At RM226 psf, it’s a good deal for Naza

KUALA LUMPUR: Naza TTDI Development Sdn Bhd, the property arm of the Naza Group, seems to be getting a very good deal with the building-for-land deal it inked with the Government, several property sources say.

Doing some rough calculations, Hall Chadwick Asia Sdn Bhd chairman Kumar Tharmalingam said the RM628mil expo centre it was going to build in exchange for 65 acres (or 2.77 million sq ft) of state land means that it was effectively getting the land for RM226 per sq ft.

“RM628mil is not a lot to pay for a expo/convention centre,” Kumar said. Singaporeans will be presented with Genting Group’s S$6bil convention centre on Sentosa Island in January next year.

This will be followed by Las Vegas Sands’ S$5.2bil project on Marina Bay in April. Both of these come with a casino.

But convention centre aside, in terms of land cost, the deal has piqued the curiousity of people in the property sector.

Sources valued the state land, when converted to commercial land, at between RM350 to RM500 per sq ft.

“RM500 may be a bit on the high side, but it makes sense. The total gross development value (GDV) of all the projects on that 65 acres is going to be RM15bil. That means the market value of that commercial land of 65 acres is RM1.5bil,” Kumar said.

A source who declined to be named said at RM500 per sq ft, the land cost would comprise 10% of the total GDV of RM15bil that Naza is undertaking. In Singapore, the land cost can go up to 50% of GDV, in Hong Kong, it is 65% of total GDV.

“If it is valued at RM350 per sq ft, the cost of land is about RM970mil. So it is around that range,” Kumar said.

On whether it is fair to compare with Singapore and Hong Kong, two countries that have among the highest real-estate prices in the region, the source said it was important to have some sort of yardstick.

“Singapore is our neighbour and they are building convention and expo centres too. So are we, with this deal,” the source said.

He said several deals comprising land area of between two and three acres were done in the Jalan Ipoh area at RM600-plus per sq ft this year.

“Because these are small pieces of land, on a per sq ft basis, the price would be higher. Over in Mont’Kiara, transactions this year were done at between RM200 and RM300 per sq ft,” he said.

Naza’s latest trophy, which is one of several, is sited behind Matrade and stretches right up to the government quarters. On a broader scale, that piece of land straddles Mont’Kiara and Segambut on one side and Jalan Duta-Jalan Kuching on the other side.

By The Star (by Thean Lee Cheng)

Demand for senior housing on the rise

SERI KEMBANGAN: The demand for specialised housing to cater to senior citizens is increasing, thanks to the global ageing population.

Bernard Tan ... ‘The industry is still at its infancy.’

Gray & Perkins Lawyers, Sydney, partner Bernard Tan said as the ageing population has dependency on fewer children (particularly in China), there are new opportunities to build housing for the senior citizens with age-appropriate features.

“According to the source that we have from the United Nations data, one out of 10 persons is now 60 years or above and, by 2050, one out of five will be 60 years or older. By 2150, one out of three will be in this category.

“With this in mind, the trend towards building specialised housing for them is increasing,” he told the World Chinese Economic Forum with the theme, Building Business Linkages, Charting New Frontiers, at the Palace of the Golden Horses yesterday.

Tan, speaking on the subject, Global Trends in Property - Designing, Branding, Developing Iconic Projects, said such development should provide for “ageing in place” where location to amenities such as meals, hospital and nursing homes and on-site care services were included.

“The industry for specialised housing accommodation for older persons in Asia is still at its infancy. While there will be a strong demand for housing, government policies on such development have yet to be determined,” he said.

For the Malaysian scene, he said the issue of different cultures and religions needed to be considered and also the role played by the Government.

Residential housing developments would be impacted by the ageing population and developers would have to vary designs and marketing to attract an older demographic market, he said, adding: “In my view, developers needs to work closely with the Government and religious organisations to create a viable model for senior housing.”

By The Star (by Edy Sarif)

Oriental Interest seeking more land

ORIENTAL Interest Bhd, a Penang-based property developer, is looking to expand its landbank to include the east coast and south of Peninsular Malaysia next year, through joint ventures.

Its executive director Khaw Eng Peng said the company has been approached by several landowners and may enter into partnership with them for any new projects in Kelantan, Pahang and Johor.

"Our plan is to improve our profit margins by building high-end products and adding value to our products," he told reporters after the company's annual shareholders meeting in Penang yesterday.

"If the prices are reasonable enough, we will consider expanding our land bank to these places, where we will embark on housing projects," he said.
Khaw did not disclose details such as the time-frame for the joint ventures to take off.

On the drawing board for next year are eight to nine property launches in Kedah and Selangor, with a combined development value of RM60 million.

"Half of the proposed projects will be carried out with joint-venture partners and all will involve residential properties," he said. The projects are located in Kuala Muda and Kulim in Kedah; Sepang; and Seremban.

Oriental Interest's undeve-loped landbank now stands at 218ha.

Khaw said the company is keen to build high-end housing units, unlike previously where the focus was on low- and medium-cost housing.

"To maintain our market and profitability due to our limited land resource, higher materials and development costs, we hope to embark on high-end housing projects," he said, pointing out that it had built high-end bungalows in Sepang.

He said unlike in the 1980s and 1990s when demand for affordable homes was high at places like the Kulim Hi-Tech Park in Kedah, the factories operating in the science park are now geared to high-technology operations and do not hire local workers who would be keen to invest in low- or medium-cost homes.

By Business Times (by Marina Emmanuel)

Mohamed Razeek takes over as CEO from Dec 1

Construction and property group Malaysian Resources Corp Bhd (MRCB) has promoted group chief operating officer (COO) Mohamed Razeek Md Hussain Mericar to chief executive officer effective December 1.

He replaces Shahril Ridza Ridzuan, 39, who is resigning and will reportedly join the Employees Provident Fund as its new chief investment officer.

In a statement issued yesterday, MRCB said Shahril will be stepping down on November 30 after eight years with the group.

MRCB chairman Tan Sri Azlan Zainol said Shahril will remain as a board member and contribute to the long-term strategic planning and positioning of the group.

Azlan added that in his new role, Mohamed Razeek will be tasked with ensuring MRCB's continued focus on revenue and profit growth and the successful delivery of its ongoing projects.
Mohamed Razeek, 51, joined MRCB as the COO in June this year, taking charge of the group's property and engineering and construction divisions.

He has over 26 years experience in property development projects, including integrated commercial and residential as well as township developments in Malaysia and internationally.

Meanwhile, the group reported a net profit of over RM10 million in the third quarter ended September 2009 compared with a net loss of RM26.8 million in the comparable quarter a year ago.

Revenue increased to RM257.1 million from RM179.3 million in the previous corresponding period.

The group said the return to profitability was mainly contributed by better profit margins from the completion of existing projects and the consistent recognition of profit from the group's ongoing work progress.

By Business Times

CapitaLand to raise US$1.8b from listing of malls unit

SINGAPORE: Singapore's CapitaLand will raise US$1.8 billion (US$1 = RM3.37) from listing its shopping malls unit, drawing strong investor interest for an offer that was modestly priced after some Asian IPOs faltered recently due to valuation concerns.

The CapitaMalls IPO will be the biggest in the city-state in 16 years. It follows Maxis's US$3.3 billion IPO in Malaysia, Southeast Asia's biggest IPO ever, as Asian companies rush to take advantage of recovering stock markets.

The CapitaMalls Asia offering was priced at S$2.12 (S$1 = RM2.43) a share, according to an issue prospectus, below the midpoint of an indicative range of S$1.98-S$2.39 a share. The shares will now be offered to retail investors and start trading on November 25.

CapitaLand will make a one-time gain of S$883 million, or about 23 Singapore cents a share, from selling the 30 percent stake in the business, and the firm said it may give shareholders a special dividend.
Asia has been a hotspot for IPOs this year, led by multi-billion dollar deals in China, but some newly listed companies such as China Merchants Securities, Glorious Property Holdings and Australian department store chain Myer Holdings have had poor debuts, raising concerns about valuations.

Merchants Securities made a weak debut in Shanghai yesterday, closing up only 8.4 per cent from its IPO price - the worst debut performance for a newly listed stock on the mainland since a ban on IPOs was lifted.

The conservative pricing for CapitaMalls is aimed at ensuring the share trades well after it debuts on the stock market on November 25, said a source.

"The book was very well covered from long-only investors," said the source, adding US and European investors participated heavily in the IPO.

"This IPO could have been priced higher, but the aim was not to squeeze investors." CapitaLand is selling 1.165 billion shares in CapitaMalls Asia to raise S$2.47 billion, making it Singapore's second-biggest IPO behind the Singapore Telecommunications offering that raised S$4 billion in 1993.

JPMorgan is the sole financial adviser, and issue manager with DBS. The two banks are also bookrunners with Deutsche Bank and Credit Suisse, according to the prospectus.

CapitaMalls manages and has interests in 86 retail properties worth S$14.4 billion in Singapore, China, Malaysia, Japan and India. CapitaLand suspended its shares for trading early yesterday, but ended 2.4 per cent lower by close of trade as traders had expected the IPO would price higher.

Besides increasing its dividend, CapitaLand, which is 40 per cent owned by Singapore wealth fund Temasek, may also use the proceeds to invest in residential and other projects such as hospitality, some analysts said.

By Reuters

Brampton to lease out 800 shop units

BRAMPTON Holdings Sdn Bhd, the property division of Fraser & Neave (F&N) Holdings Bhd, will lease out 800 units of shops under the RM350 million Fraser Business Park Phase 2, which will be completed by January 2010.

The group is negotiating with some 300 potential tenants that are interested to rent out its information and communication technology (ICT) space, which has a dedicated 500 shop lots.

The 2.43ha Fraser Business Park Phase 2 located in Jalan Yew, Kuala Lumpur, comprises 400,000 sq ft of retail entertainment space, a 70,000 sq ft hypermarket, food court and other food outlets.

By Business Times

Glomac unit sells office block for RM170mil

PETALING JAYA: Glomac Bhd’s wholly-owned subsidiary, Glomac Damansara Sdn Bhd has entered into a sale and purchase agreement with Lembaga Tabung Haji for the disposal of a 25-storey office block for RM170.7mil.

In a filing with Bursa Malaysia yesterday, Glomac said the property would be completed and handed over to Lembaga Tabung Haji within 36 months from the date of the building plan approval. The development order was obtained on Sept 24.

“The proposed sale will enhance Glomac’s future earnings and substantially reduce Glomac’s working capital requirements for the development of this project,” it said.

By The Star

Glomac sale

GLOMAC Bhd’s wholly- owned subsidiary, Glomac Damansara Sdn Bhd has signed a sale and purchase agreement with Lembaga Tabung Haji for the sale of Tower D at its Glomac Damansara development, for RM170.73 million.

Glomac said the proposed sale will immediately enhance the group’s future earnings and substantially reduce its working capital requirements for the project.

“The en-bloc sale to financially-strong institutions such as Lembaga Tabung Haji is part of Glomac’s strategy to reduce sales risk for new projects,” it said.

By Business Times

TA Enterprise expects to triple revenue from hospitality ops

KUALA LUMPUR: TA Enterprise Bhd, a member of the TA Group, expects a three-fold increase in revenue contribution from its hospitality operations next year.

Its managing director and chief executive officer, Datin Alicia Tiah said this follows an additional hotel portfolio acquisition this year.

The company's 2009 Annual Report showed that the hotel division contributed RM76 million for the financial year ended Jan 31, 2009.

"We hope to see this more than triple in future," she told reporters after the company's extraordinary general meeting (EGM) here on Wednesday.

Tiah said the company was confident that the outlook for continued growth in the hospitality market is very positive and in tandem with the better global economic outlook.

Meanwhile, she said the new acquisition, the RM635.805 million four-star Swissotel Merchant Court hotel in Singapore, was part of TA Enterprise's plan to enhance its hospitality operations.

According to Tiah, the property and brokerage company has also set aside S$5 million (S$1.00=RM2.44) to refurbish the newly acquired hotel.

She said the amount budgeted is for the next five years to upgrade the hotel's public areas, back of house areas and meeting facilities.

"The budgeted capital expenditure has taken into consideration the pricing of the hotel," she added.

The purchase of the hotel involves the acquisition of 50,569,495 ordinary shares of US$1 each in Quayside Gem Ltd (QGL), representing 100 per cent of the issued and paid-up share capital of the company from a real estate investment fund, LaSalle Asia Opportunity II SARL.

"We believe that Swissotel will provide a steady revenue stream to the hospitality operations of the TA Group," she said.

Tiah explained that the company planned to transfer Swissotel over to TA Global for better synergistic management, since all the existing hotel properties of the TA Group is held under that company.

Currently, TA Group through TA Global owns three other hotels, including the Radisson Plaza Hotel Sydney and Westin Melbourne in Australia as well as the Aava Whistler, Canada.

Tiah said the company also hoped to complete one other acquisition this year.

She, however, declined to elaborate further on this, stating that it would continue eyeing commercial buildings, hotels and land in the country and overseas.

By Bernama