Builders say regulate first, punish later

The government should first regulate the construction industry before imposing penalties on any bad contractors, says Master Builders Association of Malaysia (MBAM).

Currently, it is easy for anyone to be registered as contractor class A to F, unlike in neighbouring countries such as Singapore and Thailand.

"MBAM is supportive of the government's move to make new laws to punish contractors who are proven to have done wrong. But first, the government must regulate (the industry)," its president Ng Kee Leen told Business Times in a telephone interview from London yesterday.

"Right now, it is easy for anyone to become a contractor, be it class A or B or C until F. Only a small number of the 60,000 registered contractors are actually active and genuine.
"The government needs to step up enforcement of existing laws to weed out incompetent contractors to ensure only truly competent professionals take on jobs," he said.

So far, the Works Ministry has terminated 80 contractors for late job completion.

The ministry reportedly said on Tuesday that it had no power to act against the contractor of the suspension bridge which collapsed and took the lives of three school children in Kampar, Perak, on October 26. The bridge, which was built as a contribution by the contractor to the school, did not meet the required engineering codes and specifications.

Works Minister Datuk Shaziman Abu Mansor had said the Construction Industry Development Board (CIDB) can only take action for non-registration against the contractor that built the bridge, but is unable to punish it for the mishap.

Instead, he directed CIDB to lodge a police report, citing negligence on the part of the contractor.

The minister is proposing a new law to make contractors of public projects responsible and be punished for accidents if they were found to be negligent or used sub-standard building materials.

By Business Times (by Ooi Tee Ching)

Mah Sing plans mixed property project in China

It will establish a JV firm to undertake the US$620mil development

PETALING JAYA: Property developer Mah Sing Group Bhd is planning a mixed development project in Wujin, Jiangsu province in China, with an estimated investment cost of US$620mil.

The company, via wholly-owned subsidiary Mah Sing International (HK) Ltd, yesterday signed a letter of intent with the Wujin Government to develop the said project.

In a statement yesterday, Mah Sing said it would establish a joint-venture (JV) company with China-based developer DanLong Realty (Beijing) Co to jointly develop a 87.31-acre site along Wuyi Road, a major thoroughfare in the central area of the Wujin district.

Mah Sing, which would have a 51% stake in the JV company, said the development would comprise “medium- to high-end residential and commercial components.”

The Wujin Government had also given the JV company the opportunity to explore additional land, namely 53.13 acres north of Wujin High-New Zone of Zhangzhou City and 82.37 acres at the north intersection of Wunan Road and Wuyi Road, Wujin District, it said.

»We are confident of creating an outstanding development« TAN SRI LEONG HOY KUM

Mah Sing group managing director-cum-group executive Tan Sri Leong Hoy Kum said in the statement: “We are confident of creating an outstanding development providing unique lifestyle experiences which will transform the way people live, work and play in Wujin.”

In a separate statement, Mah Sing said it had acquired 3.38 acres of freehold land in Penang for a cash consideration of RM38.65mil via its wholly-owned subsidiary, Klassik Tropika Sdn Bhd.

Mah Sing said the land in George Town would be developed into a high-end condominium with an estimated gross development value of RM280mil.

“The acquisition is strategic as it allows the group to tap on the success and spillover demand of Mah Sing’s Residence@Southbay project in Batu Maung,” Mah Sing said.

By The Star

Mah Sing to make maiden China foray in RM2.1b deal

Mah Sing and Danlong Realty (Beijing) will form a 51:49 joint venture to develop an 87-acre site in Wujin into medium-to-high-end residential and commercial properties.

Property developer Mah Sing Group Bhd said it will partner Chinese counterpart Danlong Realty (Beijing) Co Ltd to develop a US$620 million (RM2.1 billion) mixed property development project in Wujin, China.

This will be its maiden property venture in China.

The news, which it announced in a filing to the stock exchange yesterday, helped its shares surge 6.9 per cent to close at RM1.85 yesterday. It was its highest close in about six weeks.

Mah Sing said its wholly-owned unit and Danlong will form a 51:49 joint venture that will invest US$80 million (RM270 million) in proportion to their stakeholdings as registered capital.
Its unit, Mah Sing International (HK) Ltd, and Danlong yesterday signed a letter of intent with the Wujin government to first develop an 87-acre site along Wuyi Road in central Wujin into medium-to-high-end residential and commercial properties.

The land faces the Beijing-Hangzhou Great Canal.

Mah Sing said the Wujin government has also given the joint venture the opportunity to explore two additional plots of land.

"This joint venture paves the way for Mah Sing to establish a long-term strategic relationship to grow our presence in China," Mah Sing's group managing director Tan Sri Leong Hoy Kum said.

By Business Times

Mah Sing plans Penang condo

Property developer Mah Sing Group Bhd plans to develop an upscale condominium worth RM280 million at Pykett Avenue in George Town, Penang.

The group is in the process of buying the 1.37ha prime freehold land from owner Khaw Bian Cheng Sdn Bhd for RM38.7 million, or RM262.19, per sq ft.

At present, there is a dilapidated unoccupied small bungalow on the site.

In a filing to Bursa Malaysia yesterday, Mah Sing said that its wholly-owned unit, Klassik Tropika Development Sdn Bhd, had signed a sale and purchase agreement with Khaw Bian Cheng for the proposed acquisition.

The transaction is expected to be completed in the financial year ending December 31 2010.

Mah Sing said it will be procuring a development order in respect of the proposed development from the relevant authorities for approval.

"Therefore, it is currently too preliminary to ascertain the total development cost and the expected profit to be derived from the proposed development," Mah Sing said.

If approval is granted, construction could start in the second half of next year.

Mah Sing said that no valuation was carried out on the land and was thus unable to disclose its net book value as it was not privy to this information.

The group intends to fund the proposed acquisition and development cost of the land through internally generated funds and/or bank borrowings.

Mah Sing added that the proposed acquisition is strategic as it allows the group to tap the success and spillover demand of its Residence@Southbay project in Batu Maung.

"Residence@Southbay comprises superlink homes and the launched phases are 90 per cent sold. The encouraging take-up reflects Mah Sing's strong branding on Penang island and the group is confident of replicating that success with the new condominium project," it said.

The Pykett Avenue parcel is located near major establishments such as the Chinese Recreation Club and Penang Plaza along Burma Road, and Komtar.

There is ready infrastructure with good accessibility through some major roads, and it is close to amenities and facilities.

According to the National Property Information Centre, the outlook for residential properties in Penang is promising as the residential stock overhang in the state is the lowest of the big three markets, namely Klang Valley, Johor and Penang.

By Business Times

Property demand in Johor Baru improves in H2

JOHOR BARU: The property market here, like in other parts of the country, is regaining momentum after experiencing a slowdown almost a year ago following the global economic recession.

According to Dynasty View Sdn Bhd general manager Wong Kuen Kong, demand for residential property in Johor Baru has improved in the second half year and “with the signs of a global economic recovery, we can expect a better year ahead.”

Wong was speaking to StarBiz at the launch of 58 double-storey Deanna III terrace houses at Taman Seri Austin near here by the Johor Baru City Council corporate and public relations director Abd Rahman Abdullah.

The four-bedroom and three-bathroom houses with a built-up area of 196.39 sq m in a gated and guarded precinct are priced from RM286,800. He said July’s launch of 122 units of Deanna II double-storey terrace houses priced from RM300,048 was already 80% taken up.

Wong Kuen Kong (left) and Abd Rahman Abdullah at the Deanna III showhouse

Wong said demand for houses priced from RM250,000 and below RM300,000 in Johor Baru was relatively good and the company, a unit of United Malayan Land Bhd, planned to launch more of such houses next year.

He said the company would only launch high-end properties comprising bungalows and semi-detached houses in 2011 when the economy was expected to have fully recovered.

“The Johor Baru property market is now becoming more consumer-driven and apart from design and quality finished products, buyers are also looking at location,” said Wong.

He said Taman Seri Austin’s location in the Tebrau growth corridor, one of the current hotspots for property development in Johor Baru, augured well for the company.

The housing scheme on 202.34ha site was launched in 2005 and is now 25% developed with 1,300 units of residential and commercial properties, of which 90% has been sold.

Wong said upon completion within the next eight years, the project would have 5,700 properties and 30,000 residents and generate RM1.2bil in gross development value.

By The Star (by Zazali Musa)

Malaysia Legoland park to open in 2012

A Legoland theme park will open in Malaysia’s south in 2012 at a cost of RM700 million, one year earlier than scheduled, developers said today.

Iskandar Investment Bhd (IIB) president and chief executive officer Arlida Ariff said the theme park covering 26 hectares (62.4 acres) in Johor, which neighbours Singapore, is now slated to open in April 2012.

“The selection of Legoland is very deliberate. The (planned) theme park in Singapore by Universal Studios is for young adults. Our is for families. It will be complementary rather than competition,” she said.

The Malaysian attraction will be the first Legoland in Asia. IIB is an investment holding company linked to the RM17.7 billion Iskandar Development Region (IDR), a major infrastructure project in Johor.
The IDR, launched in November 2006, will be 2.5 times the size of Singapore when completed, including up-market residential homes, a logistics hub, a waterfront city, a medical hub and an educational city.

In 2008 IIB signed an agreement with Merlin Entertainments which operates various attractions globally including Sea Life, Madame Tussauds and Legoland.

Merlin Entertainments will design and operate the theme park of which it will be a 20 per cent shareholder, with a consortium led by IIB owning the remainder.

Arlida said the theme park will offer 40 interactive rides, shows and attractions targeted at families with children aged between two and 12 years.

Legoland Development general manager John Ussher said the main concerns in developing the theme park in a tropical region were the “sun and rain.” Extensive use of shades and trees will be deployed to cool the park and make visitors more comfortable, he said.

Malaysia has long harboured ambitions of turning Johor into a major metropolis to rival gleaming Singapore, which lies across a narrow waterway.

By AFP

REIT managers team up to form association

The managers of 11 Malaysian real estate investment trusts (REITs) have teamed up to set up the Malaysian REIT Managers Association (M-REITMA), allowing players in the sector to work closer with the authorities to grow the industry.

"For the purpose of registration with the Registrar of Societies (ROS), we have proceeded to form a protem committee comprising seed members from Am ARA REIT Managers Sdn Bhd and Axis REIT Managers Bhd when we handed in our application to register the association to the ROS on September 4," said protem committee chairman Steward Labrooy of Axis REIT in a statement.

"Without an official association representing members of the local REIT industry, it soon became apparent to all of us that we were unable to have effective dialogues with the regulators and the Ministry of Finance in order to communicate the issues facing the industry and to propose changes," it added.

The association, currently pending approval from ROS, will comprise AmFirst REIT, AmanahRaya REIT, Atrium REIT, Axis-REIT, Al-Hadharah Boustead REIT, Al-Aqar KPJ REIT, Hektar REIT, Quill Capita Trust, UOA REIT, Tower REIT and Starhill REIT.
The REIT sector is now over four years old, with the first REIT having listed in August 2005. Today, there are 13 listed REITS with a market capitalisation of RM5.4 billion.

By Business Times

'Malaysia will still attract Middle East investments'

MALAYSIA, particularly Johor's Iskandar project, will still be able to attract investments from the Middle East despite the current Dubai debt crisis, experts say.

Arlida Ariff, president and chief executive officer of Iskandar Investment Bhd (IIB), believes that there are still investors from that region looking for long-term prospects here.

Selective companies from Saudi Arabia, Kuwait, Qatar and the city of Abu Dhabi continue to be strong despite what's happening in Dubai, she said.

"There's still a lot of liquidity from the Middle East that was in the past focused on the 'wrong' areas, which will now look for more sensible, long-term prospects. And I think our investment opportunities in Malaysia offer that for the Middle East," she told Business Times yesterday, on the sideline of the second day of the Malaysia-Arab Business Forum in Kuala Lumpur.
Dubai recently triggered a global stock market sell-off when it revealed that its investment companies needed more time to pay off a staggering US$60 billion (RM203.40 billion) debt.

IIB is the catalytic developer of Iskandar Malaysia, a project that has managed to draw some RM50.5 billion in investments since its inception in late 2006. This includes investments from the Middle East such as Mubadala Development Co and Aldar Properties (from Abu Dhabi), Kuwait Finance House and Limitless Holdings (Dubai).

Arlida said she doesn't expect these investments to be affected by debt fallout in Dubai.

"We remain confident that the projects that we have in partnership with our Middle Eastern partners will continue," she said.

She expects to be able to make announcements on some new investments at Iskandar over the next three to six months.

Datuk Richard Fong, chairman of Malaysia Property Inc (MPI), doesn't see the local property market being hurt by the latest developments in Dubai as Middle Eastern investors have generally not been big buyers since the global financial crisis started late last year.

"As far as the Malaysian property (market) is concerned, the biggest foreign purchasers are Singaporeans. The Middle East ranks ninth or 10th, so it doesn't really affect us much," he remarked.

MPI is a government-private entity, tasked with attracting foreign direct investments into the local property market.

Datuk Michael Yeoh, chief executive officer of the Asian Strategy and Leadership Institute, said that the flow of investments from the Middle East into Malaysia "won't be too badly affected" given that oil-rich countries like Qatar and Saudi Arabia are not affected by Dubai's problems.

By Business Times (by Adeline Paul Raj)

Mah Sing to buy land in Penang

Mah Sing Group Bhd has proposed to acquire 1.352 hectares (3.38 acres) of freehold land in Georgetown, Penang, through its subsidiary Klassik Tropika Development Sdn Bhd for RM38.651 million.

The acquisition is part of the group's expansion strategy to acquire choice land bank in the Klang Valley, Kuala Lumpur, Penang and Johor Baru for its projects targeting segments of the medium high-end property market.

"This would allow Mah Sing to capture a larger share of the market via simultaneous launches in matured areas and continue their high take-up rates," the group said in a statement today.

"Furthermore, it is rare a large piece of prime land is available in the heart of Georgetown," it said.
"We will capitalise on the sea view to the northeast and mountain view to the southwest for the proposed development," it added.

Mah Sing said the proposed acquisition is not expected to have any material impact on the group's earnings for the financial year ending Dec 31, 2009, as development of the land is expected to start in the second half of 2010.

The acquisition is expected to be completed in the next financial year.

By Bernama

Mah Sing eyes US$620m China mixed property devt

KUALA LUMPUR: MAH SING GROUP BHD is teaming up with China's Danlong Realty (Beijing) Ltd to undertake a mixed development property project in Jiangsu province, with an estimated investment cost of US$620 million.

The company said on Wednesday, Dec 2 the project would be undertaken on an 87.31 acres site, west of Wuyi road in the Wujin district.

It had signed a letter of intent with Wujin District People’s Government, Changzhou City to undertake the project there.

Both companies would set up a joint venture company to develop the plot of land into a medium to high end residential and commercial properties with an estimated total investment cost of US$620 million.

Mah Sing would subscribe 51% of the registered capital and Danlong would subscribe the remaining 49% of the registered capital in JV company.

Mah Sing shall invest a total of USD80 million in proportion to their stakeholdings as registered capital of the JV company.

The Wujin government had also given the JV company the opportunity to explore additional sites which are Plot 2 with total land area of 53.13 acres in the north of Wujin High-New Zone of Changzhou City and Plot 3, covering 82.37 acres in Minghuang Town, Wujin district.

By The EDGE Malaysia (by Joseph Chin)

Government takes action against errant housing developers

More than 1,000 housing developers and almost 5,000 directors have been blacklisted by the Government for various reasons, including abandoning projects, the Dewan Rakyat was told.

Housing and Local Government Minister Datuk Seri Kong Cho Ha said 1,345 developers and 4,659 directors have been blacklisted.

Besides abandoned projects, he said the offences included being responsible for defective projects, non-compliance with decisions of the Housing Tribunal and failing to pay fines issued by the ministry.

Responding to a question from Datuk Halimah Sadique (BN - Tenggara), Kong said from 1990 to Sept 30, 2009, 148 abandoned projects involving 49,913 units and 31,824 buyers were recorded.

“Of this, 12 projects were revived, completed and issued certificates of fitness; 49 are being revived; while the rest are waiting for new developers,” he said.

Under Budget 2010, Kong said the ministry had allocated RM200mil to revive low and low-medium cost houses.

“Of the 87 yet to be revived, 41 are low and medium-cost projects which can be revived,” he said.

Later at the lobby, Kong said the rest of the abandoned projects were difficult to revive, adding that most were high-cost projects.

“Not every project can be revived. The project has to be viable to the new developer, whom we call the white knight.

“If the white knight incurs losses, he won’t take up the project,” he said.

By The Star

Confusion over Real Property Gains Tax

Property owners and investors are confused over the interpretations of the real property gains tax (RPGT) which will be imposed from Jan 1, 2010.

In the 2010 Budget announcement last October, the government fixed five per cent tax on the gains made from property disposal.

An investor, who wished to remain anonymous, said he had checked with the Inland Revenue Department (LHDN) on the tax.

"They told me for the first two years it will be 30 per cent, similar to the old scale, and for properties over five years it will be five per cent," he said.
Earlier, Second Finance Minister Datuk Seri Ahmad Husni Hanadzlah had said the RPGT at fixed five per cent would be imposed irrespective of the holding period and the category of the owner.

"The RPGT for the first year is five per cent and is the same for the second, third, fourth and fifth year," he said when clarifying a news report in a local newspaper.

Meanwhile, Malaysian Investors Association president, Datuk Dr PHS Lim, said the LHDN's interpretation of the RPGT would be unfavorable for property investment.

He said it would have a negative impact on the economy which was targeted to grow by five per cent in 2010.

"The rate is too high. Investors will not find the Malaysian property market attractive. The US, Britain, Australia, Dubai and other venues can offer better alternatives to the Malaysian property market," he told Bernama today.

Lim said the government should review the RPGT as the Malaysian and global markets were still weak and fragile.
"We are not totally out of the economic woods yet," he said.

He said the construction industry was always vital to the Malaysian economy as it affected a spectrum of other manufacturing sectors like cement, roof tiles, bricks, steel, timber, wires, paint, sand and others.

"The industry also supports many professionals -– architects, designers, valuers and others.

"We should let the property market flourish and it will be a gain-gain situation if we have more people investing in properties. The high tax rates will drive them away," he said.

Lim said the high tax would also affect ''Malaysia My Second Home'' programme.

Several parties had also voiced concerns over the impact of the RPGT on the property market.

Associations from a broad spectrum of the property industry also planned to submit a joint memorandum of appeal to Ministry of Finance not to reinstate the RPGT from Jan 1, 2010.

Chairman of the construction and property committee of The Associated Chinese Chambers of Commerce and Industry, Datuk Teo Chiang Kok, reportedly said revenue from the RPGT would be insignificant compared to the damages to the country's image and credibility.

He said the proposed flat rate of five percent without regard to the holding period and differentiation between individuals and companies was deemed more punitive than the legislated RPGT rates in earlier Act.

By Bernama

Property sector can expect bumper year ahead

KUALA LUMPUR: Property developers can look forward to a bumper year in 2010 with more purchasers and investors expected to enter the market as economic conditions improve.

Real Estate and Housing Developers’ Association (Rehda) deputy president Datuk Michael Yam said the local property sector may see up to 450,000 potential home buyers for next year.

“Based on average household formation and population growth, there is an average demand for 150,000 units (homes) per year.

“If people have delayed buying in 2008 and this year (because of the financial crisis), you should have around 450,000 people waiting to get into the housing market in 2010,” he told reporters yesterday.

Yam was a panellist at The Time Bomb Returns – Benchmarking Management Cost seminar jointly organised by FIABCI Malaysia and the Malaysian Association for Shopping and Highrise Complex Management (PPK). Given the (high) potential demand for property next year, he said developers could face a serious supply shortage.

“I think there is going to be a shortage next year. At the end of 2007, developers, especially the members of Rehda, were making a conscious decision not to launch because construction cost went up 30%.

“And in 2008, the credit crunch hit and that really delayed the launches,” Yam said, adding that projects in Bukit Kiara, Kenny Hills, U-Thant, Bukit Pantai and Bangsar would “always sell.”

Meanwhile, PPK advisor Richard Chan in his keynote address, The complexity of share issue and maintenance charges, said developers should look into the issue of service charges prudently even before building or selling property.

“You must consider the cost of maintaining buildings today and in three to five years. Once property is old, the only income is derived from service charges. If you cannot collect a sufficient amount, you just cannot maintain the building and that is where the main problem starts. This has become the main complaint of strata owners,” he said.

Chan said service charges could include components such as electricity, water, sewerage, security, housekeeping services, advertising and promotions, servicing and maintenance, fire protection, landscaping and gardening and pest control.

By The Star

Petaling Jaya, Klang, Ampang Jaya and Kajang have been earmarked for redevelopment

Change needed: PJ Old Town, one of the places in the state which is no longer able to meet present-day needs and challenges.

URBAN regeneration is the only way forward for Selangor’s sustainable future, said Mentri Besar Tan Sri Abdul Khalid Ibrahim.

He said a total of 2,375ha of land in the state had been identified for regeneration and redevelopment in the Local Plans and Draft Local Plans of Petaling Jaya, Klang, Ampang Jaya and Kajang. Petaling Jaya alone has 1,672ha which had been identified for the purpose.

“The renewal and redevelopment of inner cities which are ageing and decaying, is not an option but is now a neccessity in Selangor to foster further economic and social development of the state.

“So far, the towns of Petaling Jaya, Klang, Ampang and Kajang have been identified as in need of regeneration initiatives,” he said.

He added that the process would take about two years and would be carried out in stages.

He was speaking at the launch of International Conference for Urban Regeneration Towards Selangor’s Sustainable Future at Sunway Resort Hotel and Spa yesterday.

Abdul Khalid said the state government would consider issues from all perspectives to ensure that the projects were planned and implemented tactfully and coherently.

“This conference is a step forward in the process of consulting and gathering more ideas from the experts, professionals as well as the public.

“We will definitely embark on more consultation and provide more channels for proposals and suggestions from the communities and stakeholders,” he said.

The two-day conference saw representatives from the local and state government, developers, financial institutions, residents associations, architects, town planners and engineers.


Among the invited speakers were the senior resident fellow for urban development in Washington-cum- ex-Pittsburg mayor Tom Murphy and Fran Wagstaff who previously headed the Mid-Peninsula Housing Coalition, one of the largest and most respected affordable housing developers in northern California.

Abdul Khalid also said the urban regeneration concept involved a comprehensive programme of land redevelopment with the complex combination of economic, physical planning, management and social considerations.

“The ‘old’ is enhanced and ‘new’ developments are constructed to revitalise the economic growth and the social environments of the selected areas.

“Urban regeneration involves rehabilitation efforts of impoverished and derelict urban industrial areas and neighbourhoods by large-scale renovation or reconstruction of housing, public works, commercial uses and mixed-developments.

“These elements of urban regeneration are brought together to improve the social sustainability, economic viability and the infrastructure of city areas and to help improve urban landscapes,” he said adding that the urban regeneration would have higher potential than developing a new urban area.

The regeneration was also necessary when the olders towns in the state are no longer able to meet present-day needs and challenges.

He added that the urban regeneration and redevelopment programme was aimed at revitalising these towns, creating jobs, enhancing the quality of life, improving amenities and infrastructure, improving management of the state assets as well as generating more revenue for the state and local governments.

Furthermore, it would help control encroachment into agricultural and forest reserved areas due to limited build-up areas in the state.

By The Star (by StarProperty.my - by Salina Khalid)

S’gor to redevelop urban land

PETALING JAYA: Some 2,375 hectares (ha) of land have been identified by the Selangor government for regeneration and redevelopment, Menteri Besar Tan Sri Abdul Khalid Ibrahim said.


Khalid

The areas were identified in the Local Plans and Draft Local Plans of Petaling Jaya, Klang, Ampang Jaya and Kajang, in line with the policies of the State Structure Plan, he told the International Conference on Urban Regeneration here yesterday.

He said the redevelopment would be done in stages over the next 20 years and that it would be market-driven.

“The state government will create a competitive environment for redevelopment and for investors to be part of the programme,” said Khalid, adding that he would leave it to the business community to decide what the market needed.

“We do not have plans to work with any particular developers; that would be cronyism,” he told reporters.

Khalid also said the redevelopment of the 2,375ha land was worth “billions of ringgit”.

“Compared to the Iskandar project, the Selangor government need not invent infrastructure, but merely enhance it,” he said, adding there was already demand in the state given its urban setting.

He added the state’s concerns regarding redevelopment included the displacement of the urban poor, the surrounding neighbourhoods, traffic and public amenities.

“Most investors have not realised the potential of this existing market,” he said, adding the industrialised and urbanised Klang Valley, unlike the “imaginary” Eastern Corridor and Northern Corridor, was a reality.

In his opening speech at the conference, Khalid said urban renewal and regeneration was needed to transform old urban and industrial areas to revitalise economic activities, provide better transportation linkages and infrastructure for enhanced and efficient social environments.

Of the 2,375ha slated for redevelopment, he said 1,672ha is in the Petaling Jaya municipality, namely the industrial, commercial and residential areas of Sections 13, 51, 51A and 52.

“The Klang municipality has a total of 131.4ha in need of redevelopment, especially the Klang town centre and Kampung Pandan, besides the banks of the Klang River,” he said.

Khalid added that 412.4ha of land in Kajang, including its town centre and Sungai Ramal needed to be redeveloped, while the 159.3ha of land in Ampang Jaya covering Ampang New Village, Kampung Pandan Dalam and areas in Jalan Jelatek and Taman Keramat is also in focus.

He said these plans were in line with the state government’s economic stimulus package.

“The stimulus package, which includes the rehabilitation of the Klang River, is expected to generate an estimated RM10 billion in investments,” he said.

He added the overall plan to redevelop the urban areas was aimed at revitalising the towns, creating job opportunities, improving amenities and infrastructure, improving the management of state assets as well as generating more revenue for the state and local governments.

By The EDGE Malaysia (by Melody Song)

Dubai crisis unlikely to affect UEM Land

JV Partner Dubai World unit not expected to pull out of project

PETALING JAYA: The financial crisis that has hit Dubai is unlikely to have an impact on the property development being jointly undertaken by UEM Land Holdings Bhd and Dubai World, the investment arm of the Dubai government, analysts said.

Recent news that Dubai, a country known for its flashy lifestyles and the world’s tallest building, was deferring its debt payments has rattled investors.

“We believe the market has overreacted,” said UOBKayHian in a research report yesterday.

UEM Land signed an agreement in late 2007 with Limitless Holdings Pte Ltd (a subsidiary of Dubai World) for the setting up of a special purpose vehicle (SPV) to jointly develop Nusajaya’s Residential North precinct in Puteri Harbour, Iskandar Malaysia.

Limitless has a 60% stake in the SPV, known as Haute Property Sdn Bhd, with UEM Land taking up the balance 40%. Haute Property will develop the 111-acre Residential North precinct at Puteri Harbour with an initial investment of RM241.8mil.

According to previous reports, the estimated gross development value of the precinct, to be completed by 2013, is about RM1.5bil.

“We understand that Limitless does not intend to pull out from the project, but is not topping up its RM125mil project equity,” UOBKayHian said.

An analyst at a local bank-backed brokerage concurred that Limitless was unlikely to “pull out” from the project.

“Limitless has already invested in the project, so financing will not be an issue. However, future funding (from Limitless) could be a problem,” he said.

UOBKayHian said UEM Land could always seek funds from its parent company, Khazanah Nasional Bhd, should the need arise.

Another analyst concurred, saying: “Going to Khazanah is a valid option. Worst-case scenario, Khazanah could even take over Limitless’ place in the SPV.

“However, there could be a delay in the project if Limitless pulls out. But we don’t see that happening.”

Further, UOBKayHian said the debt situation in Dubai would not have a significant impact on Malaysian contractors.

“None of the major contractors has any business exposure in Dubai. While Sunway Holdings Bhd and WCT Land Bhd have high construction work exposure in the Middle East, the works are concentrated in the financially staid countries like Abu Dhabi, Qatar and Bahrain.

“More importantly, we do not foresee other Middle Eastern companies, such as Mubadala Development Co, Aldar Properties PJSC and Kuwait Finance House, pulling out of their joint ventures with Khazanah in Medini, Iskandar Malaysia,” it said.

By The Star (by Eugene Mahalingam)

REIT managers association gets endorsement

KUALA LUMPUR: The managers of 11 Malaysian real estate investment trusts (REITs) on Monday endorsed the formation of the Malaysian REIT Managers Association (M-REITMA) which will be completed once given the go-ahead by the Registrar of Societies (ROS).

Among other objectives, M-REITMA aims to create an environment for more investments to be injected into high quality real estate in the country; improve transparency in corporate governance, disclosure and financial reporting, training and discussion groups; and analyse legislation and government policies.

In a statement, M-REITMA said the the full status and approval by the ROS should take place by the first quarter of next year. The 11 REITs comprising AmFirst REIT,

AmanahRaya REIT, Atrium REIT, Axis-REIT, Al-Hadharah Boustead REIT, Al-Aqar KPJ REIT, Hektar REIT, UOA REIT, Quill Capita Trust, Tower REIT and Starhill REIT.

The REITs were all listed under the new Securities Commission Guidelines under the Real Estate Investment Trusts introduced in January 2005.

The REITs were represented by their managers during a briefing yesterday by protem committee chairman, Stewart LaBrooy of Axis REIT Managers Bhd, on the present status of M-REITMA.

The REIT sector is now over four years old with the first REIT having listed in August 2005. There are 13 listed REITs with a market capitalisation of RM5.4bil as at mid-November.

By The Star

UK house prices rise 0.5% in Nov

LONDON: British house prices rose 0.5% in November, the same as in October, suggesting that a rapid initial rebound from the five-year low set in February is now slowing, mortgage lender Nationwide was reported by Reuters as saying on Tuesday, Dec 1.

Nationwide reported monthly house price growth of above 1 percent over the summer, but the lender said three-month growth in house prices has eased since September, pointing to a more modest recovery from last year's slump in house prices.

House prices rose 2.8 percent in the 3 months to November, lower than the 3.5 for the 3 months to to October.

The average British property is now worth 162,764 pounds (US$268,000) -- roughly the same as in early 2006 and 2.7% more than last November. Last month Nationwide reported the first annual rise in house prices since March 2008.

"House prices are now rising at a more moderate pace than in the spring and summer months, when they experienced a very strong bounce from the early 2009 lows," said Martin Gahbauer, Nationwide's chief economist.

"The outlook for the housing market remains crucially dependent on labour market conditions, and here recent developments have been somewhat more encouraging than might have been expected," he added.

Despite a longer recession than many other industrialised economies, unemployment in Britain has risen more slowly than most economists had forecast, and unexpectedly fell to 7.8% of the labour force in the three months to September.

"Together with the fact that mortgage rates have fallen sharply as a result of base rate cuts, this has meant that far fewer borrowers have fallen into arrears than would normally be the case in such a deep recession," Gahbauer said.

"As such, the downward pressure on house prices from distressed sales has so far been significantly lower than expected."

By Reuters

Bina Puri in talks on RM200m KK waterfront mall, condo project

Construction firm Bina Puri Holdings Bhd is eyeing a contract worth around RM200 million to construct a retail mall and condominium at the Kota Kinabalu City Waterfront (KKCW) in Sabah.

The four-storey mall will feature a waterfront lifestyle, with a "single-spine" concept incorporating high-end retailers, while the condominium will have designer suites.

Bina Puri Construction Sdn Bhd (BPCSB) managing director Datuk Henry Tee Hock Hin said it is negotiating the contract with the developer, Waterfront Urban Development (WUD) Sdn Bhd.

"Talks are still on-going. We are ironing out some details with WUD," Tee told Business Times in an interview in Kota Kinabalu.

The RM500 million KKCW project, with a promenade centred on the culture of al-fresco and fine-dining, is a mixed commercial development comprising the mall and condominium, and a five-star international hotel.

The whole development, which is a joint venture between WUD and the Kota Kinabalu City Hall, is expected to be completed by the first quarter of 2011.

Tee said BPCSB has an existing contract with WUD worth RM30 million to lay the foundation for phase one of the development.

He added that the company is also eyeing another contract to build a mall for around RM100 million in Kuching, Sarawak.

Tee declined to elaborate on the project, but added that BPCSB has a contract worth around RM60 million from the client to lay the foundation for the mall.

Meanwhile, BPCSB is eyeing several projects in Sabah and Sarawak under the Ninth Malaysia Plan. These include hospital projects, roads, highways and private housing.

"For private housing, we are looking mainly at constructing high-end condos for developers. That is our niche area," Tee said.

BPCSB has several on-going projects in Sabah and Sarawak exceeding RM700 million.

It is constructing phases 1 and 2 of Universiti Malaysia Sabah for RM150 million, and low-cost houses for Syarikat Perumahan Negara Bhd worth around RM400 million.

BPCSB also recently completed the construction of the new State Assembly Hall in Kuching for RM300 million.

By Business Times (by Sharen Kaur)

Over RM60mil in sales made

KUALA LUMPUR: More than RM60mil in sales were closed at the three-day The Star Property Fair 2009.

The 29 exhibitors, spreaded over 103 booths at the Kuala Lumpur Convention Centre, attended to thousands of homebuyers who thronged the fair from Friday.

The roaring sales caught some property developers by surprise. They were under the impression that the fair, themed Stylish Living, would only create sales leads and promote awareness of their products.

“We noticed that the visitors came with a focus and an intention to buy,” said Sonny Tan of Ideal Concept Intelligence Sdn Bhd. “We managed to close seven deals in just one day.”

Tan said that holding a fair at such a venue seemed to draw a better crowd than those held in shopping malls.

“There, you get walk-ins who are just there to look and move on, unlike at a convention centre where people come with a clear intention to buy,” he added.

Sime Darby property sales consultant Muhd Khairul Nizam Abd Kader said the response was so good that some latecomers were disappointed that they could not get choice locations.

“The crowd was great,” he said. “It was easy to close and did not take much convincing. The response was so good we did not have time to eat.”

A Setia Sky Residences spokesman said the response to the fair was overwhelming. “They are mostly locals, which is a good surprise too,” he added.

Cahaya SPK sales executive Keane Kwong lauded Kuala Lumpur Convention Centre as a good location for the fair.

“We had a fantastic booth and the crowd was good. We will surely participate again.”

A Sunway City Bhd spokesman said the fair drew “high-end visitors who are our right kind of customers.”

Nusmetro Venture Sdn Bhd sales and marketing manager Shirley Cheong agreed, saying that her team would be able to draw upon the hundreds of registrations made at their booth over the three days.

“I have a good batch of data and I strongly believe we can convert them to sales,” she said.

The Star Property Fair 2009 was the first to be held here after eight successful fairs in Penang.

Besides finding good deals with the exhibitors, financial institutions, auctioneers and property agents, the housebuyers and investors were also treated to talks by experts in various fields pertaining to property.

These included How To Be A Property Millionaire author Capt Azizi Ali, fengshui masters Joey Yap and Danny Koh and renowned Balinese landscape artist Made Wijaya.

Visitors also had the chance to win prizes from Samsung that included a washing machine, refrigerator and air-conditioner.

By The Star (by Lester Kong and Nurbaiti Hamdan)

Get out of ‘boxy’ look, says famous Indonesian designer

Sharing ideas: Wijaya showing Star Publications marketing services general manager Iris Tan (left) and Kenny Heights head of marketing Jennifer Chow the design concept of Kenny Heights.

KUALA LUMPUR: An advice to local developers and home decorators - get out of the cliched and outdated “boxy” look.

A prominent landscape designer urged Malaysian designers to put natural beauty and art back into its garden designs and return to her tropical forest roots.

Made Wijaya, a landscape designer, said local designers should look towards the rich local culture like those in Kelantan and Terengganu for inspiration.

“Hotels, the urban environment and now even houses have started to look more like microwave ovens,” he said at a talk during The Star Property Fair 2009 here yesterday.

Wijaya challenged the housing industry to break out of its decades-old fascination with landscape designs that “looked man-made and machine-made.” “Some Bali exports have become soulless,’’said Wijaya.

He said most external and some indoor designs tended to have the “new Asia zen garden design kit” comprising timber grills, Uspouts, leaking black walls and stepping Bali stones.

“Someone told me that by 2050, Asians may have to look to Europe for cultural architecture if things go on (like this),” he said in jest. He noted however that making gardens and patios more natural looking did not mean that it would lose the modern and contemporary touch either.

ID Benchmark Sdn Bhd art director Valerie Choi said one of the most important things in making a room appear larger was the choice in furnishing.

“Select furniture with an open concept such as wide-legged chairs and coffee tables,” Choi said. One should also be aware of the traffic flow in the room by placing the largest piece of furniture and arranging other smaller furniture around it.

These tips, she said, should be utilised by small space owners particularly city folks who live in high-rise buildings with confined space. She said owners should also stick to the principle of “less is more.” “Keep your apartment clean and simple. Clutter free is always stress free.” She also said the easiest trick of the trade in creating a larger space - by using mirrors.

By The Star

Feng shui masters make house buyers see the light

KUALA LUMPUR: When choosing a property, have a mountain at the back and water features in front, said Joey Yap.

All ears: Feng shui master Joey Yap speaking to an attentive audience during his talk at the Kenny Heights’ VIP Lounge at The Star Property Fair 2009 yesterday.

“Mountains govern matters related to human relationships and longevity while water affects one’s financial health and growth,” said the fengshui master.

He advised homebuyers to look for properties with these features to enjoy their benefits. Joey said importance should be placed on the environment, building and personal aspects when buying a property.

He said many mistook Chinese superstitions to be feng shui. “Good feng shui is understated, zen-like and clean,” he said at a talk during The Star Property Fair 2009 yesterday.

At a separate talk, jointly organised by The Star and Samsung, feng shui master David Koh urged housebuyers to avoid certain locations which were “unfriendly.”

Master at work: Koh presenting “How to choose a good property from a Feng Shui Perspective” at the property fair.

He said high tension wires were not just bad for feng shui, but bad for health, too.

“One should also avoid places at top of hills, that faces mountains and at lower parts of valleys,” he added.

Koh said the presence of water elements, such as rivers, provide a good pool of energy or chi. He pointed out as example Masjid Jamek, a thriving business area that attributed its vibrant development to its location — sitting above two symmetrical rivers.

By The Star

Investments in Iskandar set to gain steam

Despite the global economic crisis, Iskandar Malaysia has beaten its full-year target of RM3 billion, drawing some RM9 billion of new investments so far this year

Iskandar Malaysia in Johor, the first and possibly the most ambitious of the country's five economic corridors, has attracted some RM9 billion of new investments so far this year, exceeding its full-year target of RM3 billion, an official said.

"We were able to do this despite the global economic crisis as we had targeted long-term investors," said Harun Johari, the outgoing chief executive officer of the Iskandar Regional Development Authority (IRDA).

IRDA is the body responsible for the direction, policies and strategies of Iskandar.

The bulk of the RM9 billion came from local investors and was invested in property, Harun said.
Iskandar, incepted in November 2006, has drawn RM50.5 billion in cumulative investments as at October this year. This is more than the RM44.76 billion it had targeted for the full year.

Out of the RM50.5 billion, 35 per cent has already been spent on actual work on the ground, Harun said.

Iskandar has not been entirely spared the impact of the global crisis. Damac Group, the second biggest property developer in Dubai, a city hit hard by the financial crisis, in June pulled out of a deal with UEM Land Holdings Bhd to buy a piece of land in Nusajaya for RM396.4 million.

It was to have built a world-class integrated waterfront development. That marked the first time that a potential investor had withdrawn from a deal in Iskandar. Damac had pulled out after a property bubble burst in Dubai.

Harun, however, pointed out that Iskandar has since found a "replacement" for the amount of investment lost there in the form of a South Korean investor. He declined to give details on the new investor.

"The important thing is that Iskandar has achieved a lot. The momentum is there and will continue," he said.

He said IRDA's focus over the next two to three years would be to get projects on the ground and generally "make things happen". That is critical as the project has drawn criticism for not having shown speedier developments on the ground.

Harun takes the criticism in stride. "Criticism for a mega-project is normal," he said, adding that it was important for critics to come see for themselves the pace of developments there.

He is confident that his successor, Ismail Ibrahim, will do a good job of continuing the momentum at Iskandar.

Ismail, who takes over in January next year, is currently the director of the National Physical Planning Division under the Urban and Rural Planning Department.

The new role will not be an unfamiliar one as Ismail was previously involved in the inception of Iskandar.

By Business Times (by Adeline Paul Raj)

Malaysian construction firms in Dubai have minimum exposure

Malaysian construction companies are not likely to be hit by the debt crisis affecting Dubai

PETALING JAYA: Malaysian construction companies are not likely to be hit by the debt crisis affecting Dubai, said industry players. Dubai has been struggling to ease fears of a massive debt default after it moved to delay repayments at two flagship firms, which has shook confidence in the Middle East as a centre for investment.

Ng Kee Leen (right) ... ‘There aren’t many Malaysian construction firms left in Dubai.’

Master Builders Association Malaysia (MBAM) president Ng Kee Leen said most of the Malaysian construction companies had either pulled out or were at the tail-end of completing their contruction projects there.

“There aren’t many local construction companies left in Dubai,” he told StarBiz yesterday.

Meanwhile IJM Corp Bhd chief executive officer Datuk Krishnan Tan said the company had already completed the bulk of its projects in Dubai.

“IJM is not affected. We don’t have much there (construction projects in Dubai). We’re almost done with the construction of Fortune Tower at Jumeirah Lake in Dubai,” he said, adding that currently there was no problem with payments.

A Gamuda Bhd top official said the company was not significantly exposed to the fallout in the construction sector in Dubai.

Interior fit-out (IFO) company LCL Corp Bhd founder and executive chairman Datuk Low Chin Meng said payments were generally slow in Dubai.

“We will shift our focus on interior fit-out (IFO) contracts in cash-rich Abu Dhabi, after the completion of projects in Dubai,” he said.

The company has projects such as Atlantis The Palm Hotel, Dubai Metro System, Dubai Mall and Dubai Marina Hotel.

Concern over the level of debt held by the Government and its affiliated companies had sent jitters throughout the Gulf region and had affected investors confidence level.

Earlier in the year the Dubai’s stock market was down 60% and many residents believed that the property market was on the brink of collapse.

Dubai had borrowed billions to finance its infrastructure and construction companies such as Dubai World, and Emirates Airline.

A local property analyst said Dubai was likely to be on the road to recovery.

“The worst is likely over as the market has bottomed out. The economy was very bad at the start of the year. The housing market fell into a slump and property prices fell as much as 50% even in prime location and many expatriates left the place,” he said.

Early this year, WCT Bhd lost a US$1.3bil (RM4.6bil) contract to build a racetrack in Dubai it had won back in 2007 as the client alleged that WCT and its partner Arabtec Holding PSJC was behind schedule. However, WCT disputes the accusation and is presently fighting to reclaim RM300mil that includes advance payment of RM178mil and a performance bond.

It also seems that the Iskandar growth region in southern Johor will not be affected by the Dubai debt crisis. It was reported that Johor Mentri Besar Datuk Abdul Ghani Othman said this was because only one company from Dubai had invested in a real estate sector in the growth region. He said the company, Damac Properties, was involved in a property project on an 8ha site in the Iskandar region. He added that most of the investors in the growth area are from Saudi Arabia, Kuwait and Abu Dhabi and that the Dubai company had yet to start operation.

By The Star (by Danny Yap)

Property launches do well for this year

The capital values for high end condominiums in quarter three (Q3) this year are currently still hovering close to the original purchase prices, albeit with a small premium.

Regroup Associates Sdn Bhd executive director Paul Khong tells StarBizWeek via e-mail that new launches during this year has done fairly well with at least 50% sales or more.

“The demand which headed upwards earlier this year was due to the perception of an uptrend in the economy and the availability of low financing rates locally,” he says.

He further says that prices range from RM1,000 to RM1,300 depending on projects located on the fringe of KLCC. The best ones are now changing hands at RM1,600 per sq ft to close to RM2,000 per sq ft.

“Generally, the market took a sudden upturn from quarter two this year till mid of quarter three. Sales of condominiums which were within the affordable range of RM1mil to RM2mil per unit price took of well. Sales were brisk. For example, St Mary, SP Setia’s Sky Residence and few others,” he says.

Khong adds that enbloc purchasers are also reselling their units in KL Pavilion. Generally, sales are going well with more than 50% done.

“However, by mid September, the demand has weakened and sales have slowed down and this trend is expected to carry through to the holiday seasons,” he says.

On the real property gains tax (RPGT) to be imposed by the Government in January next year, Paul says the introduction of RPGT at 5% will obviously have a negative impact.

“It has drawn mixed reactions from the market and many parties view that this move will dampen market sentiments,” he says.

Paul adds that although it is intended to curb speculation, the impact will only be seen in the next six months.

“Many property owners will now rush to sell off their investments within the next 18 weeks or so to escape the RPGT.

On the regional investment market, Malaysian properties will now be less attractive as any gains obtained from disposal will be taxed,” he says.

He further says that the local market rallied when RPGT was temporarily suspended in March 2007. Prices in KLCC and Mont’Kiara shot up substantially.

“But by Q3 2008, all the premiums gained earlier have virtually disappeared,” he says.

Meanwhile, property developer Naza TTDI Sdn Bhd marketing & sales and quality assurance senior general manager Myrzela Sabtu tells StarBizWeek through an e-mail that the performance outlook for high end properties is neutral to positive.

“Factors include better economic performance outlook, favourable interest rates, strong commodity prices, more optimistic sentiment for next year, strong employment figures and better stock market performance,” she says.

She adds that in the case of Naza TTDI, the demand for their high end properties are well-received based on their strong following, a substantial number of repeat buyers, appreciation value of the houses, quality and good after sales service.

“Strategies that are being undertaken to increase sales is to make it easier for customers to purchase properties such as zero entry cost and no stamp duty, value for money and the property is built to advance stage before launch to reduce holding period,” she says.


Naza TTDI’s current high end residential projects among others is the The Valley TTDI in Ampang.

DTZ research report for Q3 says that market confidence is being restored for residential sector with stronger take up in the new launches and increased transaction in the secondary market.

DTZ consulting and research executive director Brian Koh says that prices are stable in Q3 but would face pressure, as there is still substantial new supply pending completion.

“There are also some tentative signs that foreign buyers are trickling back into the market due to the deregulation of foreign investment committee (FIC) guidelines announced on June 30.

In the new guidelines, all properties transactions, including those between foreigners and “non-bumiputra” will no longer require FIC approval except for transactions that involve a dilution of “bumiputra” or Government interest for property valued at RM20mil and above,” he says in the report.

He further says that Pavilion Tower which was recently completed and soft launched in August is well received with prices that are about 30% higher than Pavilion Tower 2 which was launched and fully sold three years ago.

Generally, he says that there is relief from the market that worst may be over although it may be too early to ascertain given current experts views on truncated “V” or “W” shape recovery.

By The Star (by Edy Sarif)

Think critically when you buy that house

Two weeks ago, we ran a piece on the importance of looking at details over and above location, pricing and the reputation of the developer. The piece highlighted the importance of installing smoke detectors, a sprinkler system and an adequate number of lifts in a condominium development.

A developer who is building a 38-storey condominium in SS2, Petaling Jaya called to say that the high-end project will have three lifts, instead of two as published.

Here is some food for thought. Another developer will be launching a 20-storey Bukit Jalil project comprising several blocks on 2.5 acres. It will be a high density project and each block will have three lifts.

A 20-storey condominium project in Kepong, Kuala Lumpur, launched in 2003, also has three lifts. The same developer is now building a 40-storey building. It will have four lifts and one service lift.

As a developer builds upwards, access becomes increasingly important. That is why some very high-end projects around the KLCC city centre has their own private lift lobby with one or two lifts serving one single unit.

It is up to buyers to press developers to have a variety of foliage.

When one considers buying into a condominium project, one pays a premium for the higher floors. The view tends to be better as one goes higher, it is cooler and there are less mosquitoes. While there are advantages of buying into a higher floor, this should be balanced with accessibility.

If you have the resources to buy the penthouse, should you not consider the accessibility to get your basement car park or to level ground? The lift is the only way. You are already paying a premium for that unit and you are already compromising by sharing the lifts with everyone who lives below you. Hence, the number of lifts that the project has is very important, especially if you are going to be at the very top.

From the penthouse, we take the lift to the basement car park. Although this may be a strata-titled project – it is gated and guarded – the basement car park can be a security issue. Buyers tend to be enchanted with the show unit with no consideration for the car park.

If the project is already built, check out the basement parking. Does it have a high-ceiling? Is it well-lit and airy? Are there many nooks and corners that allow people to hide in shadows? Are the parking bays large enough or is it a tight squeeze for larger sedan?

It would be a good idea to ask for a copy of the basement car park plan and imagine the route from the lift lobby to your parking bay.

If there are elderly or wheel-chaired family members who will be living in the condominium unit, they will have problems if they have to manoeuver a flight of stairs, or even several steps, to get to the parked car.

This takes us to the importance of a project having a pick-up and drop-off points. Having a nice high-ceiling lobby may be impressive, but is there a large enough area where your family members and friends can collect you or drop you off with no hassle? Or will you have to walk to the security guard house and wait?

Since we are considering the amenities outside the building, something has to be said about landscaping. There was a time when palm trees were very popular. It makes no sense to plant trees which shed their tiny leaves near a pool. However, developers’ enchantment with palms is something that has to be weighed. Developers tend to like palms instead of trees which shed their leaves daily. While palms are easier to maintain as the fronds do not shed weekly and because the fronds come in one piece, they are easily picked up and thrown away.

While some consider them aesthetically pleasing, they are not shady. Some high-rise projects today come with a landscaped park.

It makes no sense to have a one-acre park planted with just palms. It is up to buyers to press developers to have a variety of foliage, and that includes large trees which provide shade, as well as shrubs.

By The Star (by Thean Lee Cheng)

Ascott aims to double portfolio here to RM1b

The Ascott Group Ltd, the hospitality arm of the Temasek Holdings-controlled CapitaLand Ltd, aims to double its asset portfolio in Malaysia to more than RM1 billion by 2013.

Its Malaysian assets are currently worth around RM500 million, said Ascott managing director for Southeast Asia and Australia, Alfred Ong.

They include Ascott Kuala Lumpur, Somerset Seri Bukit Ceylon and Somerset Ampang.

Somerset Ampang comprises a 21-storey serviced residence of 207 units, which will house the HSC Medical Centre in the first eight floors.
The RM160 million project is scheduled to be completed by end-2010.

Ascott also owns and/or manages Somerset Gateway in Kuching, Sarawak.

Under its corporate leasing division, it manages 68 apartment units in Seri Bukit Ceylon Residence and Marc Residence in Kuala Lumpur.

By the third quarter of 2010, it will start to manage 147 units of Tiffini by i-Zen in Mont' Kiara, KL, a development by Ireka Group, which is slated to be completed by first half of 2010.

"We have several other projects in the pipeline in Malaysia. We are in the final stages of negotiation with the respective developers for management contracts," Ong said in an interview with Business Times in Kuala Lumpur.

"We are looking into new frontiers like Penang and Petaling Jaya and making a stronger presence in Malaysia," he added.

Ascott recently inked a deal with GSB Sentral Sdn Bhd to manage the 21-storey serviced residence tower at 348 Sentral at KL Sentral, a transport hub in Brickfields.

GSB, a joint venture between Malaysian Resources Corp Bhd and Gapurna Sdn Bhd, is developing the energy efficient 348 Sentral for RM1 billion.

348 Sentral will also feature a 33-storey office tower but this will be managed by GSB.

The 348 Sentral project is schedule to be completed by the third quarter of 2012 and Ascott will manage the serviced residence for 15 years from then.

Ong said the serviced residence will strengthen Ascott's leadership position in Malaysia and increase its portfolio to 1,000 apartment units.

"If there is an offer from GSB to manage the office tower, we will consider it. For now, we will focus on getting new jobs in Malaysia," Ong said.

By Business Times (by Sharen Kaur)

RM100m hospital for Ara Damansara

The new hospital, part of Sime Darby's vision in becoming a formidable healthcare player in Malaysia, is expected to be completed by 2012

Malaysia's largest conglomerate Sime Darby Bhd will build a new RM100 million hospital at its residential development in Ara Damansara, Selangor, bringing the group's total number of hospitals in the country to four.

The new hospital is expected to be completed by 2012.

An industry source said the new hospital is part of Sime Darby's vision in becoming a formidable healthcare player in the country and the region.

"The new hospital in Ara Damansara will be known as the Sime Darby Medical Centre Ara Damansara. Sime Darby is intensifying efforts to bolster its healthcare business division, where the segment is very competitive but recession-proof, enabling the group to earn an income even during economic hard times," the source said.
Analysts see the new hospital as part of Sime Darby's long-term plan to grow its healthcare business, which together with general trading and other business account for about 10 per cent of the group's revenue.

Sime Darby currently operates two hospitals and a nursing college in Selangor. They include the 393-bed Sime Darby Medical Centre Subang Jaya (formerly Subang Jaya Medical Centre) and the Sime Darby Specialist Centre Megah, which is a day-surgery and outpatient specialist centre, in Petaling Jaya.

It also owns and operates the Sime Darby Nursing and Health Sciences College in Shah Alam, which is managed by its healthcare arm Sime Darby Healthcare Sdn Bhd.

The group is also in the midst of building the 350-bed Sime Darby Medical Desa Park City in Desa Park City, near Bukit Menjalara, Kepong, Kuala Lumpur which is scheduled to be completed in 2012 at a cost of RM350 million.

In its filing to Bursa Malaysia on October 26, Sime Darby had announced the setting up of Sime Darby Medical Centre Ara Damansara Sdn Bhd which at present is a dormant company.

It bought two ordinary shares of RM1 each in Sime Darby Medical Centre Ara Damansara, which represents the latter's total paid-up capital.

Sime Darby had said Sime Darby Medical Centre Ara Damansara will be involved in healthcare facility services management and other healthcare-related services.

On Wednesday, during the announcement of the group's first-quarter results ended September 2009, Sime Darby president dan group chief executive Datuk Seri Ahmad Zubir Murshid had said that healthcare business is now one of the conglomerate's core businesses.

Its other businesses are plantations, automotive, heavy equipment, property, energy and utility, spanning over 20 countries.

"The healthcare business is growing rapidly and we will continue to bolster this sector. We expect to own two new hospitals in the next two years," Ahmad Zubir had said.

Apart from Malaysia, the healthcare business division managed by its healthcare arm Sime Darby Healthcare also aims to expand its operations overseas, especially in Asia, over the next three years.

It now has a presence in Indonesia, Vietnam, the UK and the US.

By Business Times (by Zaidi Isham Ismail)

2 high-rise office towers for last phase of Mid Valley City

Property developer IGB Corp Bhd is planning the last phase of development at Mid Valley City (MVC), which will feature two high-rise office towers worth an estimated RM1 billion.

Group managing director Robert Tan Chung Meng said IGB is awaiting approvals from the authorities and hopes to start construction in early 2010.

The two towers, which will be built similar to the existing 35-storey The Gardens North and South Office Towers, will offer 600,000 net sq ft of commercial space, Tan said.

They will be built on a 0.8ha site, which was originally meant for a convention centre, and later two blocks of high-end condominiums.

"We were toying with the idea to build condominiums or office towers. There are some residential developments coming up opposite MVC and we don't intend to compete with them," Tan said.
"MVC has become very much a commercial and retail hub so we decided to go with the office towers to take advantage of the development's MSC status, and to cater for rising demand," he added.

Tan was speaking to Business Times in Kuala Lumpur at the launch of Mid Valley City MSC Malaysia Cyber Centre One Stop Centre recently.

The centre was launched by Multimedia Development Corp chief executive officer Datuk Badlisham Ghazali.

Mid Valley City Sdn Bhd executive director Anthony P. Barragry also attended the event.

MVC received MSC Malaysia Cybercentre status on September 11 2008 under the MSC Malaysia National Roll-Out plan.

IGB pumped RM15 million into MVC, to enable fibre-optic connectivity through-out the mixed-development hub.

Barragry, meanwhile, said IGB will apply for MSC status for the two new office towers and it expects the take up for the properties to be as good as The Gardens North and South Towers.

According to Barragry, the North and South Towers are currently 95 per cent and 65 per cent leased, respectively.

Revenue from office rentals, which stood at RM55 million last year, is also expected to rise this year.

He added that MVC would make up more than 41 per cent of IGB group revenue for the year ending December 31 2009.

By Business Times (by Sharen Kaur)

TA Global, Canadian firm team up for British Columbia project

TA GLOBAL Bhd is teaming up with Townline Gardens Inc, a Canadian home builder, to develop a C$130 million (RM422.5 million) mixed-development project over seven years.

A joint-venture agreement between TA Development One (Canada) Ltd, a 100 per cent unit of TA Global, and Townline Gardens Inc was signed yesterday.

Under the agreement, TA will hold a 65 per cent of the joint-venture, in which TA Global will pump in C$11.7 million (RM38.03 million) as equity contribution.

"The joint venture will complement TA Global's corporate strategy to expand its property development activities into British Columbia, Canada... In addition, it is expected to increase the revenue stream and return of TA Global Group," said the company.
The residential and commercial units will be built on a 8.9ha land in the City of Richmond, British Columbia, in a project known as "The Gardens".

It consists of about 470 apartments and 70,000 sq ft of retail and office space. More than half of the site is agricultural land, which will be developed as a public botanical park and urban gardens.

The project will be developed in six phases over a seven-year period, from 2010 to 2017. The cost of construction will be funded via internally generated funds, external borrowings or a mixture of both.

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

By Business Times

Amanah Harta to sell building in KL

PROPERTY trust Amanah Harta Tanah PNB 2 has agreed to sell an office building on Jalan Tuanku Abdul Rahman in Kuala Lumpur to Madras Jeweller Sdn Bhd for RM15 million.

The sale was being done as part of the unitholders’ resolution to terminate the property trust.

Proceeds will be returned to unitholders, AHP2 said in a statement to Bursa Malaysia.

AHP2 bought the 9½-storey office building 14 years ago for RM11.5 million.

By Business Times

Real estate offer and more

PETALING JAYA: Visitors to The Star Pro perty Fair can check out the latest offerings from local developers at the event which begins today at 11am at the Kuala Lumpur Convention Centre.

The fair, which will be held at Exhibition Halls 4 and 5, will end on Sunday at 7pm. Admission is free.

A variety of properties including medium and high-range houses, bungalows, exclusive condominiums and other commercial projects from participating developers will be offered.

Those who have made purchases will also be pleased to know that there will be financial services at their disposal such as on-the-spot advice and easy financing plans.

Talks and forums will also be conducted by industry experts on topics ranging from property investment and wealth management to interior decoration and feng shui.

Other attractions include the CIMB Property Mart Mega Auction, to be held tomorrow afternoon at 12pm and 3pm.

The public auctions will be auctioning off apartment units, houses and a plot of bungalow land.

Visitors can also take part in a contest offering attractive daily prizes.

Prizes will be drawn daily and all winners will be listed on www.starproperty.my.

For details, call 03-7967-1388, ext 1456/1165.

By The Star

Dijaya bags Bok House land for RM123m

The price translates into about RM2,200 per sq ft, indicating that the property market in the Kuala Lumpur City Centre area is still firm.

Dijaya Corp Bhd, a property developer, is buying the land in Jalan Ampang on which the historical Bok House used to sit for RM123 million cash.

The price translates into about RM2,200 per sq ft (psf), which is slightly below the RM2,588 psf that Sunrise Bhd paid last year for the land where Wisma Angkasa Raya is located.

The price also means that the property market in the Kuala Lumpur City Centre (KLCC) area is still firm.

"I think it's a good indication for the market. It's a positive sign," Zerin Properties founder and chief executive Previndran Singhe said.
Dijaya, famous for its Tropicana branded properties, is likely to build expensive units on the prime land, a stone's throw from the Petronas Twin Towers.

"It will also create an opportunity for the group to venture into the high-end property market given that available development land within the KLCC area is scarce," it said in a statement to Bursa Malaysia yesterday.

Dijaya has paid the 10 per cent deposit to the seller, Mercury Property Management Sdn Bhd. However, there are two private caveats, a legal instrument that stops any development on the land. The first caveat was lodged by Ideal Sierra Development Sdn Bhd.

Dijaya will pay the balance two months after the Ideal caveat is cancelled or by February 24 next year. It will use internal funds and loans to settle the purchase.

The 55,929 sq ft land, which sits between Angkasa Raya and Wisma BSN in Jalan Ampang, is where tycoon Chua Cheng Bok built his mansion in 1929.

Historians and conservationists had opposed the demolition of Bok House in 2006, considering it a national heritage and tourist attraction.

Chua, who initially ran a business repairing bicycles and carriages, was the founder of car distributor Cycle and Carriage, which distributes Mercedes-Benz cars in the country.

By Business Times (by Shahriman Johari)

Emkay to build green building in Cyberjaya

An office premise to be built by Emkay Group via Joyful Getaway Sdn Bhd will be the first building in Malaysia to be accredited with the internationally recognized Leadership in Energy and Environment Design (LEED) GOLD certification.

The RM120 million project which involves the construction of a 323,000 sq ft building, will also mark the first green building in Cyberjaya.

Emkay Group chairman Tan Sri Mustapha Kamal told a press conference in Cyberjaya today said that the building would be leased out to Shell Shared Service Centre (SSSC).

Having a green building, he said, would not only increase the asset value of the property but also lower the operational cost through conservation of energy and water.
"The move towards green building is very important as it is going to provide a healthier and safer environment for the occupants.

"Green technology is the way of the future. It will change not only your approach towards the design and construction of property but also in the way we occupy and manage property," he said after the signing of the lease agreement between Joyful Gateaway and SSSC Kuala Lumpur Sdn Bhd.

Shell Malaysia chairman Datuk Saw Choo Boon said the signing of the lease agreement confirmed a planned change in Shell Malaysia's physical footprints.

The completion and occupation of the building by 2011 and the same of its accomodations in KL Sentral by 2012 would be the outcome of a rigorous evaluation process that is based on Shell's technical, environmental, social and financial requirements, he said.

"With these two offices, Shell businesses and service centres in the Klang Valley will occupy only two premises from the 10 physical locations today.

"This move will enable us to find synergies and cost savings through economies of scale. We will also be able to gain greater collaboration, thus the ability to respond faster to the needs of the customers in the region," he said.

The Cyberjaya building will have five levels of office space and three levels of sub-basement for car parking.

The original concept for the building was based on two individual office blocks flanking a central courtyard. However, due to the end-user's requirement, it has morphed into a U-shaped building where the connection between the two blocks are provided at the rear, thus maintaining the look of two separate buildings from the front.

By Bernama

DNP explains land transaction

DNP Holdings Bhd, a property developer and garment manufacturer, said there was no valuation carried out on the 9.4-acre land it plans to buy for RM56 million, as it was a “willing buyer, willing seller” transaction.

The company, part of the Wingtai Asia Group, added that the funding for the land as well as the development of the land, will come from internal generated cash as well as bank borrowings.

It is not expected to have a significant impact on its gearing.

By Business Times

Columnist to share tips on Indian feng shui

PEACE with the environment is a criteria for healthy homes and every resident should create a balanced surrounding so that his or her mind, body and soul are in harmony.

“This is important because we all experience physical and mental stress every day at work and returning to a home that is not in tune with the environment can add to the stress,” said Sunday Star Vasthu Sastra columnist T. Selva, who will be presenting a talk at The Star Property Fair tomorrow at the Kuala Lumpur Convention Centre (KLCC) Hall 4, at 2pm.

Full attention: Selva delivering a talk on Vasthu recently.

He said Vasthu, better known as Indian feng shui, essentially helps balance the man-made environment with the natural world.

Selva said Vasthu was a science of architecture and it could be applied in any space, enclosed or open, and it is highly recommended when buying, renting, building or designing a property.

“When renting or buying a new or second-hand house or apartment, Vasthu recommends that one should check certain things before making a decision.

“The first thing one should do is to enter the property and stand in the centre with eyes closed to feel the ‘vibrations’.

“If the vibrations make you feel happy, then check the directions by using a compass in which various elements of the house face,” he said.

He said a potential house buyer should check which side the plot faced, the location of the roads, topography, plot extension and the surrounding area before making a commitment.

“A house facing north is favourable as it is on the magnetic axis and welcomes positive energy. Land sloping towards the north is also considered auspicious.

“A house facing south is average for residential purposes but auspicious for people in the food and beverage business. Land sloping towards the south is considered inauspicious,” he said.

Selva, who has written two books on Vasthu, said a house facing east was auspicious because it received solar energy and if the land was sloping towards the east, it was considered auspicious.

Selva said out of the eight compass directions, the only direction that should be avoided for a main door was the south-west.

On buying a plot of land, he said do not buy a plot of land that has a graveyard either in front or at the back of it.

“Such surroundings will only bring fear and give no peace of mind to the owner.

“Buying land near a place of worship should also be avoided, especially if the shadow of a temple falls on the property.” he said.

At the talk, Selva will be showing participants on how to choose an auspicious property and how to create the perfect home by rearranging a house. Admission to the talk is free. To register call 012-329 9713

By The Star

Residents welcome DBKL’s adoption plan

The call by Kuala Lumpur mayor Datuk Ahmad Fuad Ismail encouraging community involvement in the care and maintenance of city parks, playgrounds, and roundabouts has drawn favourable response from the public as well as corporations.

Many see it as an excellent way for the DBKL to save costs as well as to instill a sense of belonging among Kuala Lumpur residents.

Brickfields RT chairman S.K.K Naidu said it would also provide a means for the RT to earn money for its community activities.

Good idea: The Brickfields RT is keen to adopt the Chan Ah Tong field in Brickfields.

“It’s a great idea. Our members are seniors citizens and gardening would keep them occupied. It would also help give them a sense of purpose,” Naidu said.

He added that the Brickfields RT would love to adopt the Chan Ah Tong field in the township and ensure that it was kept clean and maintained for the residents.

Ramli Shahril, who lives in the government quarters in Jalan Rozario, Brickfields, said the idea was good and that apart from ensuring the parks and playgrounds remained clean and tidy, it would indirectly get the residents to be responsible of their own areas.

Sungei Wang senior promotions and public relations manager K.K. Lim welcomed the idea and said the complex would love to work with the DBKL in adopting areas that were close to the complex.

Parkson general manager in charge of Parkson Care Lee Kong Huat said the mayor’s proposal was a good way of getting corporations to contribute to the community.

Lee said Parkson had always been interested in such endeavours and that the company had adopted eight parks under its corporate social responsibility programme.

The parks Parkson adopted are Taman Beringin and Taman Bandaran Kelana Jaya in Petaling Jaya, Ipoh Polo Ground Park in Ipoh, Dataran Bunga Raya in Seremban, Taman Jubli Perak Park in Sungai Petani, Taman Kejiranan in Jalan Teluk Sisek, Kuantan, Kajang Municipal Council Children Playground in Kajang and Taman Datin Rokiah in Taman Century, Johor Baru.

“We have always been interested in adopting KL parks.

“In fact, we wanted to adopt the Lake Gardens and a park in Taman Desa and areas in Taman OUG,” Lee said.

Lee added that apart from funding the parks, Parkson staff were encouraged to get involved in sprucing up and restoring the park and its facilities.

Fuad added that a committee would be set up to formulate policies and programmes to develop a system to enable corporations to adopt the areas.

By The Star (by BAVANI M)

Residents unhappy over houses converted into restaurants

Defiant: The owner of this restaurant in Jalan SJ1 in Taman Selayang Jaya had been fined many times but still operates the outlet.

Two double-storey houses in Taman Selayang Jaya, Selayang, have been converted into restaurants and their neighbours are unhappy about it.

Both the restaurants are corner lots — one in Jalan SJ19 and the other in Jalan SJ1.

Although one of the restaurant owners had been fined numerous times by the Selayang Municipal Council (MPS), the operator continues to run the outlet in defiance of the local authority.

Residents, who wished to remain anonymous, sent an e-mail to StarMetro claiming that these restaurants were disturbing the peaceful environment and led to vehicles being parked along the road, sometimes even blocking the entrance to their houses.

A check revealed that extensive renovations had been done at the double-storey steamboat restaurant in Jalan SJ19 —even the addition of a third floor — and the council was unaware of it.

The other houses along Jalan SJ19 are double-storey houses.

MPS assistant enforcement officer Paramasivam Chelliah said the restaurant in Jalan SJ1 had been fined many times.

Each time, the owner will just pay the fine and continue to run the business.

“We are unaware of the restaurant located in Jalan SJ19.

“Our enforcement staff will visit the place next week to check whether they have proper documentation for the renovations and approval for the restaurant.

“We do not give any permits for houses in residential areas to be converted into restaurants,” he said, adding that the case was being handled by the council’s legal affairs department.

By The Star (by Stuart Michael)

Broad range of properties

The Star has so far organised eight annual property fairs in Penang and the response from exhibitors and visitors has been encouraging.

For the forthcoming fair in Kuala Lumpur, visitors will be able to view the latest offerings by renowned local developers with a broad range of properties from medium to medium high-range houses, bungalows, exclusive condominiums as well as commercial projects.

The list of participating developers include:

SP Setia Berhad
Lucky Bright Star Sdn Bhd (Sunrise Berhad)
Sunway City Berhad
Sime Darby Property Berhad
ICI Paints (Malaysia) Sdn Bhd
NUSMETRO
SJ Properties Sdn Bhd
KPWG International
Setia Haruman Sdn Bhd
Dijaya Corporation Berhad
Must Ehsan Development Sdn Bhd
Mines (Country Heights Grower Scheme)
Hotel Fair Lane Holdings Sdn Bhd
Ideal Concept Intelligence Sdn Bhd
Berjaya Land Berhad
There will also be talks and forums conducted by various industry experts on various topics including property investment, feng shui, interior decoration and wealth management.
Other attractions include a CIMB Property Mart Mega Auction on Saturday (noon — Leong Auctioneers; 3pm Ng Chan Mau Auctioneers).

There will also be a contest for all visitors with the following daily prizes to be won:

Friday — Washing Machine (11kg) x 3 units
Saturday— Air Cond (1.0HP) x 3 units
Sunday — Refrigerator (410litre) x 3 units

Entry forms are available at the Information Counter located at Hall 4 & 5.

All you have to do is to answer some simple questions and tell us why you enjoy visiting the fair (in not more than 15 words).

Prizes will be drawn daily and all daily winners will be notified by phone.

By The Star