MRCB makes approach to buy federal land

Malaysian Resources Corp Bhd (MRCB) has made an informal approach to buy or help develop thousands of acres of federal land in the Klang Valley.

But its recently-appointed chief executive officer Mohamed Razeek Hussain stressed that no formal bid has been submitted.

"We have expressed our interest. It's up to the government to whom it wants to allocate the land," Razeek said in response to whether MRCB had made a bid to the government for prime land in two areas.

He was speaking after MRCB's extraordinary general meeting on its proposed rights issue in Kuala Lumpur yesterday.
The government recently announced plans to sell or co-develop its prized landbank in Cheras, Kuala Lumpur and Sungai Buloh in Selangor.

During Budget 2010, it singled out a 100 acres in Jalan Cochrane near Maluri in Cheras (market rate of RM100-RM150 per sq ft) and 2,000 acres at Rubber Research Institute of Malaysia in Sungai Buloh.

The latter land is sited near an industry park in Kota Damansara, with an estimated market rate of RM30 per sq ft.

Razeek said MRCB is keen on increasing its landbank to turn it into mixed development projects.

MRCB, he said, is unlikely to make any cash call in the next five years after its proposed renounceable one-for-two rights issue.

Shareholders yesterday gave their nod on the exercise that will raise gross proceeds of between RM508 million and RM541 million.

"(With money from the rights issue,) we will have sufficient fund to participate in future projects especially in the construction sector.

"It also puts us in a good stead to move forward," Razeek said.

He added that the company's performance should be better this year and beyond than in 2008 on the back of various ongoing and new projects.

Meanwhile, the rights issue at RM1.12 a share will raise MRCB's share capital to between 1.36 billion and 1.44 billion from the present 907.62 million shares.

Proceeds will be used to fund expansion into environmental engineering and infrastructure business, acquisition of prime land for property development, as well as for MRCB's 51 per cent equity investment in Nu Sentral Sdn Bhd.

The latter company is a joint venture with Pelaburan Hartanah Bhd to acquire and manage a seven-storey retail mall called Nu Sentral at KL Sentral.

MRCB said its gearing level will ease to as low as 1.2 times from 2.5 times now after the completion of the rights issue.

As at end-September this year, it has total borrowings of RM1.6 billion.

By Business Times (by Zuraimi Abdullah)

MRCB using RM541mil rights proceeds to buy land

KUALA LUMPUR: Malaysian Resources Corp Bhd (MRCB), which has proposed a RM541mil fund-raising exercise via a rights issue, plans to use most of the proceeds to increase its land bank, especially in the Klang Valley.

Chief executive officer Mohamed Razeek Hussain said it would invest in land for further commercial and residential developments.

“The rights issue constitutes one of the key steps by MRCB to raise funds without incurring interest expenses from banks and a way to strenghten its balance sheet,” he told a briefing after the company’s EGM yesterday.

MRCB shareholders approved a 1-for-2 rights issue at RM1.12 a share to raise RM508mil to RM541mil. This represents a discount of about 13.2% from the thereotical ex-rights price of the five-day volume-weighted average market price prior to the price-fixing date on Nov 19.

Razeek said the timing was right to gear up for expansion as market conditions globally were recovering from the economic crisis.

He said the funds raised were purely for healthy business expansion and not to clear bank borrowings.

The rights issue is expected to increase MRCB’s capital from 907.63 million shares currently to between 1.36 billion and 1.44 billion shares.

“Based on our audited accounts as at Dec 31, 2008, MRCB’s gearing level would decline from 2.5 times to between 1.4 times and 1.2 times following the completion of the rights.”

MRCB chief financial officer Chong Chin Ann said the Employees Provident Fund, a 30% equity shareholder of the company, had taken up 130 million rights shares for slightly over RM150mil, while the rest would be backed by banks.

By The Star (by Danny Yap)

Govt said planning compulsory acquisition of land

The government plans to compulsorily buy a piece of land measuring 0.38ha on Jalan Tun Razak, Kuala Lumpur, from property developer IGB Corp Bhd.

The land is near Megan Phileo Promenade and a stone's throw from the Petronas Twin Towers.

Should the government pay the prevailing price of around RM1,200 per sq ft for the piece of land, the land may be sold for some RM40 million, a source said.

It is understood that the government may build a fire station on that location.

"IGB has already received a development order to build 166 units of high-end service apartments with 200,000 sq ft of net saleable area," a source told Business Times.
The source added that IGB hopes to get at least RM1,200 per sq ft, given that land prices in vicinity of the Kuala Lumpur City Centre ranges from RM1,900 to RM2,200 per sq ft.

Should IGB be paid RM1,200 per sq ft, it may get some RM40 million from the government.

"The project is in the pipeline, but it has not been launched yet," another source said.

Citigroup in a research report dated December 16 said that the book cost for the land is RM6.4 million or RM156 per sq ft.

"Typically, compulsory acquisition is done at market price (but what is the market price is also subjective) ... In the property market report, the last transaction in the KLCC area (off Jalan Tun Razak) was close to RM1,500 per sq ft," the report said.

It added that should the land be sold at RM1,200 per sq ft, IGB has a potential after tax-gain of RM32 million.

By Business Times (by Vasantha Ganesan)

E&O to sell land to Hap Seng for RM103m

EASTERN & Oriental Bhd (E&O) has entered into a sale and purchase agreement to sell a 4,651.203 sq m land together with preliminary works carried out thereon to Hap Seng Consolidated Bhd for RM103 million.

The sale is expected to be completed by first quarter of 2010. The plan is for Hap Seng to develop a 35-storey office building with a five-storey basement carpark on the land.

As at November 30 2009, E&O’s total bank borrowings stood at RM1.03 billion. Assuming the entire proceeds from the sale were to pare down borrowings, E&O can save RM5.8 million in financing cost based on an average 5.7 per cent interest rate per year.

By Business Times

E&O sells land for RM103mil

PETALING JAYA: Eastern & Oriental Bhd (E&O) is selling a parcel of freehold land in Kuala Lumpur measuring 4,651 sq metres to Menara Hap Seng Sdn Bhd for RM103mil in cash.

In a statement to Bursa Malaysia Monday, the company said Radiant Kiara Sdn Bhd, a wholly-owned subsidiary of Matrix Promenade Sdn Bhd, which in turn is a wholly-owned subsidiary of E&O, had entered into a sale and purchase agreement with Menara Hap Seng for the sale of the land.

E&O said the sale was in line with its strategy of preserving capital value and strengthening balance sheet, adding that the cash could be deployed in other projects and investments to maximise returns or for the repayment of borrowings.

It added that preliminary structure and piling works had been carried out on the vacant piece of land.

The sale would not have any effect on the issued and paid-up share capital and substantial shareholders’ shareholdings of the company, and that the transaction is expected to be completed by the first quarter of 2010, according to E&O.

By The Star

YTL, PDC to build luxury apartments

The Penang Development Corporation (PDC) and YTL Land & Development Bhd today signed an agreement to develop luxury apartments on a 1.38-ha land in Lebuh Farquhar, Penang.

Each party would hold 50 per cent equity in the project.

Originally, a hotel was to be built on the site by PDC Heritage Hotel Sdn Bhd, a joint venture between YTL Hotels & Properties Sdn Bhd (a wholly-owned subsidiary of YTL Corporation Bhd) and PDC.

After the hotel project was shelved due to the economic slowdown, PDC Heritage Hotel sought to change the type of development from hotel to luxury apartment.
Subsequently, it applied to change the type of land holding to freehold and the condition of land use to residential and business.

The new project comprises three six-storey 76-unit apartment blocks including an underground basement, a clubhouse and a restaurant.

By Bernama

PNB buys Kenanga building for RM250m

Permodalan Nasional Bhd has purchased the 22-storey Kenanga International Building in Kuala Lumpur from Injaz AsiaEquity Property

Permodalan Nasional Bhd (PNB) has bought the Kenanga International Building on Jalan Sultan Ismail, Kuala Lumpur, for an estimated RM250 million, sources say.

The 22-storey commercial building with a three-and-a-half- storey annexed podium block was purchased from Injaz AsiaEquity Property Bhd.

Injaz AsiaEquity was jointly set up by Middle East Injaz Mena Investment Co and Singapore-based AsiaEquity Partners Inc.

"The acquisition by PNB was completed on Thursday (December 17)," a source told Business Times.
Another source said that the building was sold for about RM700 per sq ft.

Based on reports, the building is said to have a net lettable area of 297,522 sq ft and sits on 6,804 sq m of land. However, under a planned refurbishment and upgrading exercise, the building will have an additional lettable area of 70,000 sq ft. This will translate into some RM250 million.

PNB did not respond to Business Times' query.

In September 2008, Tower Real Estate Investment Trusts (Tower REIT) said that it had planned to buy Kenanga International Building for RM157.5 million. This deal, which works out to around RM550 per sq ft, was not completed as some conditions were not met.

Sources say PNB is paying more for the deal because of the upgrading work.

According to Kenanga International's website, the upgrade is in the final phase and will be completed by December 31 2009. The building will house an executive lounge, a new secondary lobby and a swimming pool.

In June 2007, K&N Kenanga Bhd sold the building to Injaz AsiaEquity for RM165 million.

Meanwhile, three years ago, PNB bought the 35-storey Bangunan MAS on Jalan Sultan Ismail located across Kenanga International Building for RM130 million.

PNB has indicated that it plans to convert Bangunan MAS into a business or five-star hotel and to demolish the podium next to it for a luxury serviced apartment tower. The hotel and apartments would be worth a combined RM1 billion.

By Business Times (by Vasantha Ganesan)

The online real estate agent

For players in the real estate industry, the Malaysian Annual Real Estate Convention (MAREC 10) has always been an exciting event to look forward to every year.

Next year is no different with MAREC 10, the brand name for 2010’s convention, promising a host of prominent local and international speakers who will share their views and experiences on the theme, “The Millionaire Real Estate Agent”.

Some of the topics that will be discussed at the convention are:

Topic 1: Social Media & Technology – Do they affect the way real estate is marketed?
Social media is, of course, a worldwide phenomenon now. From Facebook to Twitter to MySpace, the list is never ending. But the idea of using social media for real estate advertising is still very new and has only recently started gaining popularity in Malaysia.

Just where and how does one start using social media as an advertising tool? How do you plan your next step once you are on social media? Is there a future and will genuine business be coming in from these channels or is it just hype? How can you motivate people to talk about properties on these channels?

Property developers have started to use Facebook to market their properties. Politicians also use blogs and Facebook to get public opinions and feedback on various issues. Are estate agents able then to successfully manage their online persona? What are the pitfalls here?

Oon Yeoh, the speaker for this topic, will provide a critical analysis on the online social media and the estate agent. He is the editor for New Media at The Edge and has been writing about technology issues and trends since 2000. His weekly tech column often touches on the topic of social media. He is currently working on a book on how companies can use social media for communication, branding and promotion purposes.

Topic 2: Negotiating for success
The negotiator is the most important person in a real estate agency. Someone with good negotiation skills will bring in sales and keep the business of the company going. Those setting their sights on becoming a millionaire real estate agent must also be a million dollar negotiator in the first place.

What are the qualities necessary to negotiate for success? What are the innate qualities that you already possess but have not yet fully utilise? How can you sharpen your skills to be more focused in your negotiations? How can you present and put across the selling points clearly to your prospective clients?

Chandran Pillay, the speaker for this topic, will guide participants on how to negotiate for success and share his wealth of experience from selling properties in Singapore. He has been in the real estate industry since 1995 and is currently the senior vice president at Century 21 Singapore, a real estate agency in Singapore. He is also the honorary secretary and membership chairman of the Institute of Estate Agents in Singapore.

Topic 3: Millionaire real estate agent forum
The millionaire real estate agent forum is the place for interaction between participants and the speakers. MAREC 10’s organising committee is working to create a dynamic platform for this purpose and there will be four speakers from various sectors of the real estate market present.

Each speaker specialises in a particular area and will speak about their success stories in becoming a millionaire real estate agent in their respective agencies. They will share their personal experience on how the different types of estate agencies businesses are conducted in their own markets with emphasis on business opportunities available to estate agents in Malaysia.

Participants will be given an insight into micro management of these speakers’ businesses that have made them leaders in the industry. Participants are also encouraged to put forward questions that they may want the speakers to answer.

The panel speakers are:
• Nixon Paul, director, Carey Real Estates Sdn Bhd
• Robert Ang, director, Rahim & Co
• Clement Ong, director, Megaharta Real Estate Sdn Bhd
• Adrian Wang, director, CBD Properties Sdn Bhd

MAREC 10 is scheduled for Jan 23 and 24 at the Putra World Trade Centre in Kuala Lumpur. There will also be a networking dinner to welcome delegates, VIPs and speakers on Jan 22.

Between now and Dec 31, early bird discounts are offered for members, non-members and negotiators. The convention is open to the public at RM800 per participant.

For details, contact MIEA. Tel: 03-7960 2577 | Fax: 03-7960 3757 | Email: secretariat@miea.com.my | Website: www.miea.com.my

By The Star

Dubai firm keen to invest US$500m in Melaka

A company from Dubai, Golden Crescent Group, has expressed interest to invest US$500 million (about RM1.720 billion) in Melaka, Chief Minister Datuk Seri Mohd Ali Rustam said today.

"They showed interest to invest in the state after seeing the development in Melaka," he told reporters after opening the 34th general representative meeting of 4B Youth Movement in Ayer Keroh.

He said Golden Crescent was interested to invest in fields like hotel, manufacturing, recycling and building a specialist hospital.

Representatives from the company -- Dr Abdelrahman Mustafa Abdullah Al Jarrar, Mahomed Akbar Khan dan Dr Khalil A.H. Al Khalil -- met Ali earlier today.
During the meeting, Ali said, he had also suggested the company to invest in animation films in the state. A memorandum of understanding would soon by signed between Chief Minister Incorporated and the company, he added.

He said that among other factors that drew the interest of foreign investors to Melaka were the existence of various infrastructures, abundant skilled workforce, political stability and peace.

"They have visited tourist spots, industrial areas, factories producing high-tech products, higher learning institutions, ICT facilities, the Melaka Institute of Biotechnology and many other places. That's why they are interested to invest here," Ali said.

He said Melaka's foreign investment target for next year was RM3 billion while this year's achievement would be known by the end of December.

"Melaka has received a lot of investment in the tourism industry so I think the Malaysian Industrial Development Authority can also consider this as foreign direct investment besides the manufacturing sector," he said.

By Bernama

MK Land to build more high-end homes

The Rafflesia by MK Land.

MK Land Holdings Bhd plans to transform Damansara Perdana in Petaling Jaya into a more high-end area by focusing on building luxurious landed properties in a location known predominantly for its high-rise condominiums.

Chief operating officer Fatimah Wahab tells StarBizWeek through an e-mail recently that the company will be pushing for more high-end residentials after receiving positive feedback from buyers of The Rafflesia that they would like to see more landed units.

The Rafflesia, which offers modern contemporary three-storey semi-detached houses tucked in an exclusive enclave within Damansara Perdana, is the first landed property in that location. “We are confident that the demand for landed property in Damansara Perdana is increasing. This is based on the great respond we had with Rafflesia,” she says.

The company sold 84% of its units within two days when it held a second launch of Rafflesia recently. With a built-up area of between 3,861 sq ft and 4,668 sq ft, prices start from RM1.4mil. The company expects to attract high net worth owner-occupiers, existing MK Land buyers as well as foreigners from Japan, South Korea and Australia.

“Apart from high-end products such as The Rafflesia, our investors have also shown interest in our service apartment development, Metropolitan Square Residences. That project is about 65% sold. Prices range from RM250,000 per unit,” she says.

The core products for MK Land are The Rafflesia, Armanee Terrace condominiums and Metropolitan Square (block C) condominium. They are expected to enhance profitability under the developer’s five-year roadmap.

MK Land believes its concept of green, clean lush living areas will be able to woo more buyers and investors into that location, particularly expatriates.

Damansara Perdana is a mixed development comprising commercial and residential properties on a 750-acre integrated township that is destined to be a premier centre for business and living in what is currently known as PJ north.

It is located adjacent to highly popular Mutiara Damansara, which is developed by the Boustead group. Over the years, the M K Land group has sold more than 40,000 housing units exceeding RM5bil, including properties in Damansara Perdana.

By The Star (Edy Sarif)

SP Setia plans more homes at Shah Alam township

SP SETIA Bhd will launch 3,000 new homes in Precinct 6, 7 and 8 at its 1,000ha Setia Alam township in Shah Alam over the next two years.

To date, it has launched about 7,000 homes in the three precincts, sprawled over 400ha, where 4,000 homes are occupied.

Bandar Setia Alam Sdn Bhd general manager Tan Hon Lim said SP Setia has another 600ha to develop over the next seven to 10 years, which will cater to an additional 10,000-15,000 new homes and Setia City commercial hub.

"We will continuously launch our terraced homes and semi-dees in various sizes to give purchasers a wide range of choice when considering buying a home in Setia Alam," Tan told Business Times.
Tan said people are buying into SP Setia due to potential price appreciation and value.

"Thanks to our 5/95 financing package, we sold around 1,000 units this year. We hope to sell the 3,000 homes that we plan to launch, in two or three years. So, next year will be more challenging for us than 2009," Tan said.

Tan said Setia Alam homes have evolved into more modern designs for some phases, incorporating more friendly features with emphasis on security.

Setia Alam, previously known as the North Hummock Estate, was started in April 2004.

SP Setia bought 1,600ha of the estate in 2002.

It sold 274ha to the Selangor Development Corp (PKNS) and allocated 316.4 for the development of Setia Eco Park.

SP Setia, the Employees Provident Fund and Great Eastern respectively hold 50 per cent, 34 per cent and 16 per cent of Setia Eco Park, which is focused on selling land, bungalows and semi-dees.

Tan said Setia Alam has potential to generate a gross development value of RM8 billion, which is excluding the Setia City commercial hub.

Since the launch of Setia Alam, SP Setia has sold around RM2 billion worth of properties, including terraced houses and semi-dees.

To boost sales, SP Setia constructed the Meru/Setia Alam Link for RM150 million with direct access to the New Klang Valley Expressway (NKVE).

By Business Times (by Sharen Kaur)

A growing industry

Emphasis on property management and maintenance is expected to lift the property care services industry going forward.

Property care services is relatively small in Malaysia but it is a growing sector as owners and tenants put more emphasis on property management and maintenance.

Property Care Services (PCS) International managing director Arnaud Bialecki says property maintenance adds value to a property, particularly for commercial buildings like shopping complexes, office buildings and hotels.

Owners or companies will be able to collect better rental with high quality properties, which can be done through property care services - ARNAUD BIALECKI

“Owners or companies will be able to collect better rental with high quality properties, which can be done through property care services,” he tells StarBizWeek in an interview recently.

An associate company of OCS Group UK, PCS is a privately owned company offering a full range of property support services with over 100 years of experience.

Property Care Services (M) Sdn Bhd has been in Malaysia since 1997, with its base in Kuala Lumpur and branches in Penang and Johor.

It currently has 400 staff in Malaysia with plans to increase this by another 600 in five years. It has more than 60,000 employees worldwide. It is more established in Thailand with about 3,000 related companies and a staff strength of 23,000.

In terms of revenue, it is expected to chalk up earnings of RM375mil from its Thailand operations this year compared with Malaysia’s RM7.5mil, with an expected annual growth of 10%.

PCS has established operations in several countries throughout the region such as Cambodia, Bangladesh, India, Austraila and New Zealand.

The company provides integrated property support services, which includes cleaning, washroom and hygiene, pest management and gardening services.

On the Malaysian operations, the company is currently seeking business opportunities with five-star hotels and Grade a buildings. It currently holds a 45% market share in property care services in the local retail market.

Besides its operations in the Klang Valley, PCS is also seeking to expand its business into Sabah and Sarawak in the next two to three years.

The company sees potential for Malaysia to become a major marekt and revenue earner for the group in the future.

“We see opportunity in the tourism industry as new hotels are being set up in East Malaysia, which includes large hotel chains from overseas,” he says.

He says the company also plans to acquire companies in similar business activities in Malaysia, Singapore and the Middle East. It plans to venture into Vietnam next year.

On how PCS differentiates itself from its competitors, Bialecki says the company uses a lot of technology, supervision and training.

“We invest in technology and equipment and put a lot of emphasis on staff training using the standards of the British Institute of Cleaning Science,” he says.

On challenges in the property care services industry, Bialecki says human capital is a major problem globally as this is not a glamorous industry.

It is, therefore, hard to retain and recruit people. The percentage of employee turnover for the company in Malaysia is 4%.

Other challenges include the local climate and environmental conditions. “With monsoons, heat and dust, not to mention pollution, it is necessary to take a specialised approach to the professional maintenance of buildings,” he says.

On local market outlook, he says as more buildings are developed, there will be a need for such services.

“However, the market might feel the impact of the economic downturn in 2011 and 2012 as there are less projects being launched since last year. We see a pick-up today and this bodes well for companies like ours,” says Bialecki.

Moving away from the Klang Valley, he says the various projects around the country like the economic corridors would favour property care companies like PCS.

“Our priority in the next few years is to get market share away for our competitors,” he says.

The company’s client base includes BMW, Suria KLCC, Star Hill Shopping Centre, Menara Citibank, YTL Residence and Royal Lake Club.

By The Star (by Lee Kian Seong)

CHM Hotels sees larger contribution from MICE

CHM Hotels Sdn Bhd expects the meeting, incentive, conventions, and exhibitions (MICE), and the corporate markets to generate 70% of the collective annual revenue of the hotels under its management in the country in 2010.

Datuk Eric Lim ... ‘The MICE and corporate market generated about 60% of our collective revenue of our hotels in the country.’

CHM’s managing director Datuk Eric Lim told StarBizWeek that the CHM chain of hotels has to date secured 10% to 15% more bookings from the MICE and corporate segment for 2010 compared to 2009.

“For this year, the MICE and corporate market generated about 60% of our collective revenue of our hotels in the country,” he says.

Lim said between 2008 and 2009 some of the hotels under CHM spent RM108mil on renovations and upgrading, which helped boost bookings from the MICE and corporate market.

MiCasa All Suite Hotel in Kuala Lumpur, for example, reopened on Dec 9 after spending RM85mil on renovation works. The Boulevard Hotel in Kuala Lumpur and the Cititel Hotel in Penang also spent RM5mil and RM8mil respectively on upgrading works.

“We have also embarked on a cross-promotional programme with Pangkor Island Beach Resort, another CHM managed hotel, to market George Town’s heritage status and Pangkor Island beaches.

“This strategy has also helped to increase bookings from the MICE and corporate segment,” Lim says.

On the forthcoming RM100mil Cititel Express in Penang, Lim says construction work for the four star 28-storey hotel should start in the first quarter.

“The plan is for Cititel Express in Penang to have over 500 rooms, scheduled for completion in the second quarter of 2012,” he says.

CHM presently manages The Gardens Hotel & Residences, Kuala Lumpur, The Boulevard Hotel, Kuala Lumpur, Pangkor Island Beach Resort, Cititel Penang, Cititel Mid Valley, Kuala Lumpur, Cititel Espress Kuala Lumpur, Cititel Express Kota Kinabalu, and MiCasa All Suite Hotel, Kuala Lumpur.

By The Star (by David Tan)

Signature fittings for more homes

SignatureKitchen cabinets may be finding their way into more homes, including of first-time house buyers and young executives, when the manufacturer, Signature International Bhd, launches its kitchen system brand, called Kubiq.

If previously, Signature's kitchen fittings were more likely to be found in upmarket condominiums and residences, the availability of a more affordable range could open up a broader market for the manufacturer.

Customers will not have to travel far to visit a Kubiq showroom either as Signature plans to open up to 100 outlets nationwide through franchising.

Sharing the company's latest plans with Business Times, managing director Tan Kee Choong said that Kubiq features a new concept in the furniture industry here by involving customers in the design of kitchen fittings for their homes.
"It is like a no-frills kitchen cabinet system because customers only pay for what they want. Customers pick and choose the products from the showroom and decide how much to spend," he said, when met after the company's annual general meeting in Petaling Jaya, Selangor, on Thursday.

Through its business model, Signature can control inventory and pass on the savings arising from economies of scale in the form of competitive product pricing, Tan said.

"This is part of our long-term plans to nurture the first-generation Signature customers. Kubiq enables customers to get SignatureKitchen cabinet systems at entry level and when they upgrade their lifestyle, they can purchase the systems that are more trendy and offer greater choice."

Tan said that Signature had a soft launch of Kubiq early this month and that seven out of 10 invited customers had already placed their orders.

The customers, mostly young executives aged between 25 and 35, ordered Kubiq fittings priced as low as RM2,000 an item.

Tan also said that the company will identify suitable franchisees for Kubiq in the first quarter of next year, expressing optimism that the 100 outlets may be realised as early as in two years.

For now, the group's major revenue contributor will continue to be the kitchen fittings that it undertakes for residential projects.

By Business Times (by Hamisah Hamid)

Rehda: Property sector to recover in 2nd half of 2010

Malaysia's sluggish property market is expected to recover in the second half of next year, in line with the country's improving economy.

Real Estate and Housing Developers' Association (Rehda) chairman Datuk Michael K.C. Yam said based on the findings of its own survey, over half of members are optimistic the market will improve.

"The respondents are optimistic that the property market will improve amid cautious optimism with houses between RM100,000 and RM250,000 expected to see good demand," Yam said in Kuala Lumpur yesterday at a media briefing on property updates.

A total of 103 members participated in the survey. Rehda has about 900 members.
Most developers agree the economy will recover next year with the government forecasting growth of 2 to 3 per cent.

Only 21 per cent of respondents will maintain current prices for new launches while another 38 per cent said they will increase their prices.

A majority expects property prices to rise by up to a fifth over the next six months.

"Higher Employees Provident Fund withdrawal for subsequent home purchases and lower toll to encourage buyers to buy homes outside of Kuala Lumpur can improve the sector," said Yam.

By Business Times (by Zaidi Isham Ismail)

Rehda: Property market to improve

KUALA LUMPUR: The Malaysian property market is expected to improve next year in line with the expected improvement in gross domestic product.

Real Estate and Housing Developers’ Association Malaysia deputy president Datuk Michael Yam Kong Choy said most developers were optimistic that the property market would recover beyond the second quarter of next year.

“A continuous population growth, a low interest rate environment, low unemployment rate as well as easy access to financing, will boost demand for the property market,” he told a media briefing yesterday.

Yam said there would be more new property launches next year, especially in the second half.

He said houses priced between RM100,000 to RM250,000 were expected to continue to be in good demand. — Bernama

On the implementation of the fixed 5% real property gains tax (RPGT) on Jan 1, Yam said the timing of the imposition was not right.

He said the RPGT should be imposed only to curb speculation and not across the board. “If imposed at all, it should only apply to transactions within a specified period,” he added.

Meanwhile, RAM Holdings Bhd economist Kristina Fong said the rating agency projected Malaysia’s GDP to grow by 4.9% next year.

She said domestic-oriented services, as well as construction and manufacturing industries, will drive the modest recovery.

By Bernama

MPI to organise property exhibition in India next year

KUALA LUMPUR: Malaysia Property Incorporated (MPI) will organise a property exhibition in India for Malaysian developers next year.

The exhibition, at the Hyderabad International Convention Centre (HICC), is from Jan 21-23.

"MPI is optimistic that the exhibition is an excellent opportunity to continue promoting Malaysia as a premier real estate investment," MPI chairman Datuk Richard Fong, said in a statement here, Thursday.

MPI is a Malaysian government initiative set up to promote and brand Malaysia as an international property investment destination.

It is driven by the International Real Estate Federation (FIABCI) Malaysian Chapter in collaboration with the Malaysian government, the Real Estate Housing Developers' Association (REHDA), the Malaysian Institute of Estate Agents (MIEA) and the private sector.

By Bernama

New mortgage product boost for Hong Leong Bank

PETALING JAYA: Hong Leong Bank Bhd expects its new mortgage loans to grow 10% in the first three months of the launch of the Hong Leong Flexi Mortgage yesterday.

Yvonne Chia says customers can take a bigger loan amount while enjoying smaller monthly installments.

The mortgage plan, which allows customers to defer payment of 15% to 35% of their total loans to the end of the loan tenure, would allow customers to take a bigger loan amount while enjoying smaller monthly instalments, group managing director and chief executive Yvonne Chia said at the launch of the new mortgage plan.

“In purchasing a home, buyers often have to compromise on the location, lifestyle, property type or even the design of their desired home,” she said. “With changing lifestyles and increasingly discerning taste, the new generation of homebuyers would certainly appreciate a bigger loan amount to cater to their needs.”

Chia said housing loans now accounted for 58% of the total household debt.

The bank’s personal financial services chief operating officer Moey Tan said the new product offered a monthly instalment of close to 7% of the loan amount for most of the loan tenure. The monthly instalment would increase near the end of the tenure.

Tan is confident the new mortgage plan would appeal to homebuyers as most people would have a higher income nearing the end of their loan tenure.

The Hong Leong Flexi Mortgage is for residential properties valued from RM200,000. It is targeted at first-time buyers and those looking to upgrade their homes. It has an interest rate of base lending rate (BLR) minus 1.8%. Hong Leong Bank’s current BLR is 5.55%.

By The Star

YTL Land to buy half of PDC Heritage Hotel

YTL Land and Development Bhd plans to buy a 50 per cent stake in PDC Heritage Hotel Sdn Bhd (PDC) for RM14.6 million.

The deal is a related party transaction as PDC is a subsidiary of YTL Hotels & Properties Sdn Bhd.

PDC owns a parcel of leasehold commercial land measuring about 1.4 hectare located along Lebuh Farquhar, George Town, Pulau Pinang.

By Business Times

Projects on housing, roads and basic amenities to benefit 10 million

United we stand: (Fourth from left) Datuk Dr S. Subramaniam, Datuk Seri Idris Jala, Tan Sri Dr Koh Tsu Koon, Tun Abdullah Ahmad Badawi and Datuk Seri S. Samy Vellu at the launching of the Goverment Transformation Programme (GTP) at the Sunway Pyramid Convention Centre yesterday.

The Government is trying to reach out to the 10 million poor people living in the rural areas by building more roads, providing low-cost housing, delivering clean water and electricity.

It plans to build roads totalling 7,000km-long at an estimated RM10.5bil, supply treated water to 360,000 houses, construct new and restore 50,000 houses as well as provide electricity supply to 140,000 houses.

“We will implement these projects within the next three years.

“The clean water supply would be enough to serve an equivalent to the whole of Kedah’s population while the electricity supply would be enough to serve the whole of Malacca’s population,” said Basic Rural Infrastructure Lab leader Mohamad Sabari Shakeran.

Mohamad Sabari said once the basic infrastructure of the rural areas had been addressed, social development and other matters would fall into place.

“Can we deliver? Yes, we can. We have conducted a survey to see if we have enough contractors, supply and machinery to deliver these projects, and we have enough capacity.

“Yes, there is also enough money but the prime minister will announce the allocation later,” he said.

Mohamad Sabari said the lab had also identified internal red tape as one of the factors which would delay the implementation of government projects.

“We have met up with the various agencies to shorten the process.

“For example, the process for road construction open tender takes 136 days.

“We have now shortened it to 71 days. This does not mean we are stopping here.

“We are still looking into ways to shorten the process further. But this is a start,” he said.

Rural Basic Infrastructure

> Over 7,000km of new and upgraded roads nationwide

> 1,500km of roads in Sabah and Sarawak

> Piped clean or treated water for 360,000 houses nationwide

> Increasing water supply to 80% in Sabah and Sarawak

> Electricity for over 140,000 houses nationwide

> Electricity coverage to 95% in Sabah and Sarawak

> Providing 50,000 new and restored houses to the poor and hardcore poor

By The Star

Equine Capital sells Petaling Land for RM28mil

KUALA LUMPUR Equine Capital Bhd (ECB)'s wholly-owned subsidiary Taman Equine (M) Sdn Bhd today entered into a sale and purchase agreement with Tanjung Balai Sdn Bhd for the disposal of a leasehold land for RM28 million.

In a statement, it said the 4.72-hectare land in Mukim Petaling, Selangor, was categorised as building land zoned for commercial use.

It is charged to a local bank as part of the security of the ECB Group for a term loan facility.

The land, acquired in 1994 at RM260,168, was revalued to RM8.7 million upon the listing of ECB in 2003 and further revalued to RM28.8 million as at March 2009.

The land had been leased to Aeon Co (M) Bhd and the lessee had erected a building known as "Aeon Taman Equine Shopping Centre".

The annual lease rental currently payable under the lease agreement is RM1.5 million.

ECB said the proposed disposal was in line with the group's business strategy of disposing non-core assets to streamlime the business operations.

Of proceeds, ECB said, RM10 million would be used to repay bank borrowings and the balance as working capital for its property development activities.

Tanjung Balai Development is involved in property development and investment holdings.

By AP

Equine Capital unit sells Selangor land for RM28m

EQUINE Capital Bhd’s subsidiary is selling a 4.7ha plot of land in Selangor to Tanjung Balai Development Sdn Bhd for RM28 million.

The company said the sale was part of strategy to get rid of non-core assets and streamline its businesses.

Proceeds would be used to reduce borrowings and to provide working capital.

Taman Equine (M) Sdn Bhd will use RM10 million to repay debt while another RM18 million will be for working capital.

By Business Times

UEM head is construction industry's 'Prominent Player'

UEM World Bhd's chairman Tan Sri Ahmad Tajuddin Ali clinched the "Prominent Player Award" at the Malaysia Construction Industry Excellence Awards (MCIEA) 2009.

The event, organised by the Construction Industry Development Board (CIDB), is an annual affair. Now in its 10th year, the award recognises individuals and companies that have excelled in the construction industry.

IJM Construction Sdn Bhd was named "Contractor of the Year" for its work on Menara Bumiputra-Commerce in Jalan Raja Laut, Kuala Lumpur.

Trans Resources Corp Sdn Bhd's Datuk Sri Sufri Mohd Zain, meanwhile, was the recipient of the "CEO of the Year" award.
Works Minister Datuk Shaziman Abu Mansor presented the winners with their certificates and trophies at the ceremony held at the CIDB Convention Centre in Kuala Lumpur on Wednesday.

Thirteen recipients were honoured that day.

The winner of the "Environmental Best Practices Award" went to Tanjung Mahsuri Sdn Bhd, while the "IBS Award" went to Spaz Sdn Bhd.

The "Contractor Grade 1" award winner was Double R Enterprise, while the Grade 3 award winner was Gabungan Perintis Sdn Bhd, and Grade 4, Gilap Kualiti Enterprise.

The "Contractor Grade 5" award went to HNA Terus Maju Holdings Sdn Bhd, while the Grade 6 and Grade 7 awards were given out to NKR Continental (M) Sdn Bhd and Sunway Construction Sdn Bhd, respectively.

The "International Achievement Award" winner was Persys Sdn Bhd, for the work it did in improving Saudi Arabia's Jamarat Bridge and its surrounding area in Mina.

CIDB said the MCIEA served as a platform to create healthy competition among industry players in adopting best practices in the implementation of projects.

By Business Times

Agents: No impact on prices of properties in KLCC area

KUWAIT Finance House (Malaysia) Bhd's (KFHMB) move to not proceed with the purchase of the RM920 million Menara YNH in Kuala Lumpur will not have any impact on prices of properties in the area, say real estate agents.

They said prices of land and commercial buildings surrounding the Kuala Lumpur City Centre (KLCC) will stay firm in 2010.

YNH Property Bhd had on Tuesday said that it was notified by KFHMB of its intention not to proceed with plans to buy one wing of the office tower in Menara YNH on Jalan Sultan Ismail.

"KFHMB has been prudent in its investments and as an investor in Malaysia, it has been doing well," real estate agent Previndran Singhe of Zerin Properties said. He added that the local property market remains unaffected by KFHMB's move.

"It is realistic to say that people are cautiously optimistic. Land sales (in the KLCC area) have been in the RM1,900 to RM2,200 per sq ft range. For commercial properties, it is between RM800 and RM1,100 per sq ft. It is definitely holding and is likely to inch up next year," Previn told Business Times.

Recently Dijaya Corp Bhd said it was buying the land in Jalan Ampang, which houses the Bok House, for RM123 million or about RM2,200 per sq ft.

DTZ Nawawi Tie Leung Property Consultants deputy managing director Adzman Shah Mohd Ariffin said there has been no indications of distress sales in the KLCC area, due to limited land availability in the area.

"(Property) values there seem to be holding well for the time being," he added.

CB Re (Malaysia) Sdn Bhd (formerly Regroup Associates Sdn Bhd) managing director Allan Soo said the market remains unaffected by KFHMB's move not to buy Menara YNH, as indications were that there was never a deal between the two in the first place.

He expects prices of land in the KLCC area will continue to rise, but the same can't be said for commercial properties with the opening of GTower and The Icon on Jalan Tun Razak which could put pressure on rent.

"Sales of office blocks may be just below RM1,000 per square foot," Soo said.

He added that land prices will continue to rise due to scarcity of prime land in Kuala Lumpur.

By Business Times (by Vasantha Ganesan)

KFH: ‘No legally binding’ pact to buy YNH's RM920mil property

PETALING JAYA: Kuwait Finance House (M) Bhd (KFH) has refuted YNH Property Bhd’s claim that it is in a legally binding agreement with the latter and can be made liable for backing out of a deal to purchase Menara YNH, a 45-storey office tower worth RM920mil.

In a statement yesterday, KFH said there was “no legally binding agreement” with the Ipoh-based developer because neither party had committed to signing a sale and purchase agreement.

“A conditional letter of offer was executed between KFH and YNH but the sale and purchase agreement was not executed as the conditions stipulated in the conditional letter of offer which included the necessary approvals from KFH’s board of directors, shareholders and/or committees were not obtained,” it said.

It added that both parties had had “several discussions and meetings thereafter” to agree on a revised structure so as to meet the those conditions.

“As both parties were unable to agree on a revised structure and terms of the sale, KFH has decided not to proceed with the purchase of the said Menara YNH.

“We may review our decision in the future, should we be able to find a viable structure to enable us to participate in the sale transaction,” KFH said.

KFH had offered to buy a 50% interest in YNH Land Sdn Bhd’s Menara YNH early last year. YNH Land is a unit of Kar Sin Bhd, which in turn is a wholly owned subsidiary of YNH Property.

YNH told Bursa Malaysia on Tuesday that it had been notified in writing by KFH that the latter would no longer be proceeding with the formalisation of the sale and purchase agreement.

In the same note to Bursa, YNH said it was seeking legal advice on the matter.

“As such, the board will consult our legal advisers on all of the options available to our group, including but not limited to specific performance and/or seeking damages from KFH,’’ YNH said.

Meanwhile, analysts expect the YNH-KFH deal to fall through but it would not have any impact on YNH’s earnings.

ECMLibra Investment Research said in a note that the news was “not surprising”.

“The partial sale of Menara YNH had been widely expected to fall through following long and protracted negotiations since the offer letter was signed on Jan 11, 2008.

“Nevertheless, the positive thing we can see from this turn of events is that the uncertainty of the sale to KFH has finally been drawn to a close,” it said.

The research house said it was making no revision to its earnings estimate as it had already disregarded the earnings contribution from the sale to YNH.

RHB Research in its report said the deal falling through was “not a surprise to us”, and added that it was not revising its earnings forecast for the developer.

An analyst said YNH would have no problem finding another buyer for the tower, albeit at a lower selling price than the RM920mil KFH had agreed to.

Menara YNH, which is yet to be built, will be located in Jalan Sultan Ismail, Kuala Lumpur. Selling prices in the area have nosedived 20% to 25% since the offer by KFH.

“The economy is already improving but we expect flattish growth for the property sector in 2010. It would take a while for property prices to match the levels they were at in the last quarter of 2008,” an analyst said.

Zerin Properties chief executive officer Previndran Singhe concurred that YNH would have no problem finding a buyer for Menara YNH, adding that prices of properties within the area were showing signs of improvement.

“Property prices may reach last year’s levels by end-2010. But by 2011, there should be no problem for YNH to sell at a higher price (than what was offered by KFH),” he said.

By The Star (by Eugene Mahalingam)

No legally binding pact with YNH: KFH

KUWAIT Finance House (M) Bhd (KFHMB) said it does not have a legally binding agreement to buy a building from YNH Property Bhd.

The Islamic bank has abandoned plans to buy half of Menara YNH on Jalan Sultan Ismail, Kuala Lumpur, for RM920 million and YNH said it would seek legal advice and claim damages.

KFHMB was responding to media reports on KFHMB decision not to go ahead with the RM920 million en bloc purchase of Menara YNH on Jalan Sultan Ismail, Kuala Lumpur.

"A conditional letter of offer was executed between KFHMB and YNH but the sale and purchase agreement was not executed as the condition letter of offer which amongst others includes the necessary approvals from KFHMB's board of directors, shareholders and/or committee were not obtained," KFHMB said in a statement yesterday.
It added that the parties had several talks and meetings on a revised structure to meet approvals and other conditions in the letter.

"As both parties were unable to agree on a revised structure and the terms of the sale, KFHMB has decided not to proceed with the purchase of the said Menara YNH," it added.

By Business Times

Lebar Daun to launch new phases worth RM500mil

SHAH ALAM: Property developer Lebar Daun Development Sdn Bhd will next year launch at its various projects a total 14 new phases with a total gross development value (GDV) of RM500mil.

Eight new phases would be unveiled at the upmarket D’Kayangan mixed development and five at Bukit Bandaraya Shah Alam, located at Section 13 and Section 8 in Shah Alam respectively.

Executive director Noorazhar Mohamed Nurdin said these phases would comprise terrace houses, semi-detached units and bungalows, with a starting price of RM670,000.

“We have new and exciting products in the pipeline,” he told StarBiz yesterday, adding that Lebar Daun would be launching projects every month next year.

He said an ongoing residential development in Sri Kembangan would also have a new phase.

Even though the economy was still recovering, sales and marketing manager Arman Putera Asmuni said Lebar Daun would continue to launch new phases and not hold back.

“If we only launch when the economy improves, we will be at pace with our competitors. By continuing to launch, we will already have completed products (compared with other players) when the economy is good,” he said.

Work on D’Kayangan, which sits on 163 acres of leasehold land, started in 2005. To be developed in 13 phases, the project has a GDV of RM1.6bil and is slated for completion in 2015.

D’Kayangan will feature over 1,300 superlink homes, semi-detached houses, cluster homes and bungalows. About 40 acres have been dedicated to commercial development.

Its 300-acre Bukit Bandaraya Shah Alam project, to be developed in 15 phases, has a GDV of RM1.2bil.

Lebar Daun would also be launching a high-rise mixed development in Section 14, Shah Alam by the end of 2010 with a GDV of RM200mil.

By The Star (by Eugene Mahalingam)

Bank Islam eyes new role in developing wakaf land

Bank Islam Malaysia Bhd may indirectly become a property developer as it explores the prospect of developing wakaf land into property projects.

It is in talks with various Islamic religious and economic agencies, such as Yayasan Wakaf Malaysia, on developing wakaf land nationwide.

Group managing director Datuk Seri Zukri Samat said that instead of just providing the financing, the bank could also become joint project owner.

"We will play a key role in the development of wakaf land in the country. While being a lender, we may also go a step further to becoming joint project owner."

Zukri was speaking at a press conference after the opening of Bank Islam's 95th branch in Kota Damansara, Selangor, yesterday.
Bank Islam has already invested in its first wakaf land venture in Kuala Lumpur, although neither as a joint project owner nor a developer.

Instead, the bank will be the anchor tenant of a 34-storey building in the "Golden Triangle" now being developed by its parent, Lembaga Tabung Haji.

The pilgrimage fund, which owns 52 per cent of Bank Islam through the latter's holding company, BIMB Holdings Bhd, is developing the RM151 million building on 0.48ha of wakaf land.

The land belongs to the Federal Territory Religious Affairs Council.

Construction works on the land along Jalan Perak, off Jalan P. Ramlee, started in 2007 and the building itself is expected to be ready next year.

Meanwhile, Zukri said that Dubai Investment Group, which owns

about one-third of Bank Islam, may sell its stake if it receives a good offer. He declined to elaborate.

He also said that Bank Islam plans to open at least 10 more branches next year, which will swell its banking network to more than 100 branches.

The sites for six new branches have been identified and they include Alor Star in Kedah, Bukit Jelutong in Selangor and Sri Petaling, Kuala Lumpur. Each branch should cost around RM600,000 to set up.

Zukri was optimistic that Bank Islam would again achieve double-digit growth next year given the encouraging trend it has seen since last month.

The bank expects its deposits and lending to grow substantially next year.

Bank Islam will soon change its financial year-end to December 31 from June 30 to be in line with Tabung Haji's financial year.

By Business Times (by Zuraimi Abdullah)

Setia Haruman throws in perks for buyers of CBD Perdana 2 units

Investors looking for a blue chip commercial property to add to their portfolio can check out Setia Haruman Sdn Bhd's latest project, CBD Perdana 2 in Cyberjaya, Selangor.

Under the first phase, it had generated gross returns of about 10 per cent per year for its owners. CBD Perdana 2 promises to offer a similar competitive investment advantage and equally good returns.

In a statement, Setia Haruman said CBD Perdana 2 is based on an award-winning "Office Park" con-cept evolving around an architectural design that creates a "green and vibrant" work environment.

Expected to be completed by October 2011, CBD Perdana 2 is touted to be the new commercial highlight of Cyberjaya; offering signature retail space and corporate office units.

The built-up area of the units ranges from 2,2821,776 sq ft to 2,5733,121 sq ft.
Located within the central business district of Cyberjaya, CBD Perdana 2 enjoys a ready consumer catchment from the 900,000 population of Cyberjaya, Putrajaya, Kajang, Seri Kembangan, Puchong and Dengkil; accessibility via major highways; and comprehensive facilities in the neighbourhood such as an international school and three private established universities and colleges.

Setia Haruman, which is the master developer of Cyberjaya, said rental returns of CBD Perdana 2 are expected to be RM3 and above per sq ft.

For a limited time only, purchasers of CBD Perdana 2 units will get to enjoy various incentives under a flexible financial package offered at attractive interest rates; with zero progressive interest during construction.

By Business Times

KPJ in property deal

KPJ Healthcare Bhd (KPJ) has entered into a conditional sale and purchase agreement with Property Base Development Sdn Bhd to buy the seven-storey Maharani Specialist Hospital in Muar, Johor, for RM22 million.

The deal, signed by KPJ’s wholly-owned unit Maharani Specialist Hospital Sdn Bhd, includes the 6.9 million sq m of land which the hospital is sited on.

The Maharani Specialist Hospital building is partially completed and upon completion by the end of 2011, it will be a private specialist hospital.

The estimated further development cost on the property is RM26 million.

By Business Times

Bina Goodyear expects to be back in the black this fiscal year

Construction group Bina Goodyear Bhd (7023) expects to return to profitability in its current fiscal year, on increased construction work and contributions from its electronics division.

It has some RM500 million worth of contracts that will keep it busy for the next 12 months.

"We expect to return to the black in the current year ending June 30 2010, with a revenue of some RM350 million. These profits will come from our existing and new contracts," chairman Md Azar Ismail told Business Times after the group's shareholders meeting in Subang, Selangor, yesterday.

He said the group expects to win another contract within the next few months, which would boost its earnings. He declined to elaborate.
Bina Goodyear posted a net loss of RM24.24 million on revenue of RM333.8 million for the fiscal year ended June 30 2009.

Md Azar said it is bidding for a few building jobs in Putrajaya. He added that the group is positive on the outlook for 2010 due to tender invitations from the government and new property launches by private developers.

"We are focused on building construction works in the Klang Valley. But, if there's an opportunity to do projects in Johor's Iskandar region, we will consider, provided that the contract has substantial value," he said.

Bina Goodyear, via its 75.5 per cent unit TC Electronics Sdn Bhd, also makes automotive and home loud speakers. Md Azar said the business is improving.

TC Electronics is one of the key OEM car speaker suppliers for Proton and Perodua. It also supplies its products to international speaker manufacturers such as the JVC group and Alpine Group.

Meanwhile, Bina Goodyear senior general manager Lawrence Lau said the group is looking to re-activate its property development business. It had moved away from the division to focus on construction due to poor market sentiments.

Bina Goodyear recently sold its only parcel of land, measuring 8.6 acres, in Bandar Sri Damansara for RM27 million, to fund working capital and reduce debt to RM68 million.

"We are sourcing for land in the Klang Valley to build medium-cost buildings and medium- to high-end land properties in the near future," he said.

By Business Times (by Sharen Kaur)

Ho Hup in land sale

Ho Hup Construction Co Bhd’s 70 per cent subsidiary Bukit Jalil Development Sdn Bhd plans to sell 13,398 sq m of freehold land in Bandar Bukit Jalil for RM7.64 million to Action Master Sdn Bhd.

Proceeds will be used to repay borrowings and fund working capital.

Ho Hup will realise a gain of RM520,181 from the sale.

By Business Times

Resort-style residences

Covillea Bukit Jalil: With its prime locale and easy accessibility, Covillea represents an excellent investment or a primary home for both locals and expatriates.

Set in 400 acres of resort development is Covillea Bukit Jalil, a winning development in Bukit Jalil by Berjaya Golf Resort Bhd. Specially designed for growing families, the freehold condominium homes are built to suit today’s modern lifestyle needs.

Despite the prime address, the residential properties here do not come with a high price.

Covillea spans a total of 2.91 acres and is sited adjacent to the Bukit Jalil golf course. It comprises two 20-storey highrise blocks with a total of 308 units and a five-storey car park podium. All units have a panoramic view of the international standard 18-hole golf course with certain units having the added view of the swimming pool.

Covillea comes with condominium facilities and multiple security checkpoints. Even the infinity pool and the glass gym overlook the golf course. The two monorail stations, namely the Bukit Jalil station and the Sri Petaling (Star LRT) station are located within walking distance. And this development is easily accessible via major roads and highways. With the elevated Mex Expressway, the Kuala Lumpur International Airport is just a 20-minute drive away.

Basically, Covillea units come with three bedrooms plus a utility room. There are two layout designs with a spacious built-up of 120 sq m (1,293 sq ft) and 131sq m (1,415sq ft). Each unit is provided with two covered, car parking bays. For those who enjoy gardening, there are some units on the ground floor that come with extra land to create your own private garden. The units on the lower floor have a unique balcony with an eye-level view of the golf course or pool deck. And the full-height windows on the higher floors allow you to enjoy plenty of natural light and ventilation.

During the launch on Nov 21, the first 30 buyers of Covillea units were offered a rebate of RM10,000. Apart from the legal fees absorbed by the developer, Berjaya is also offering 0% interest* payment during construction - until Dec 31. Repayment starts only upon completion.

1 Petaling is designed with a modern and practical concept.

1 Petaling @ Sungai Besi
1 Petaling serves to be a rewarding investment for first-time homebuyers and young couples. This newly launched mixed-development project spans 1.66 acres of land and is close to established neighbourhoods like Sri Petaling, Bandar Tasik Selatan and Seri Kembangan. The project offers stylish condominium residences and dynamic retail environment to the thriving community of Sg Besi.

Housed in a 20-storey block comprising 250 units of condominium units, located on the fifth to the 20th floor, residential units comprise spacious “three-bedroom and two-bath room” units and “3 plus 1-bedroom and three-bathroom” units designed with a modern and practical concept.

The units come in five sizes from the smallest unit of 82sq m (884 sq ft) priced from RM180,935 to the 109sq m (1,171sq ft) units with 3+1 bedrooms priced from RM280,888. Several units even come with a courtyard garden, giving the feel of landed property living.

Complete with lush landscaping, 1 Petaling offers comprehensive facilities such as a swimming pool, wading pool, gymnasium overlooking a pool, reflexology path and a children’s playground. The development has been designed with a multi-tier security system with a video and CCTV network. Enhanced security features include card access to the lift lobby and car park as well as centralised SMATV which offer residents peace of mind.

Buyers of 1 Petaling homes are being offered:

• 0% interest payment during construction*
• up to 95% loan finance including Mortgage Reduce Term Assurance* (MRTA)
• zero entry-cost on the Sales and Purchase Agreement*
• low downpayment of RM3,000*
• 21 days interest-free EPF withdrawal*

In addition, there are interest-free instalment plans* for the initial 10% on the downpayment.

Hazel 2 comfort
The Hazel 2 terraced houses at Berjaya Park in Shah Alam, will delight first-time homeowners with its attractive features and minimal need for renovation. With only 87 units left, Hazel 2 offers freehold exclusivity on a development site that spans 7.53 acres.

The spacious built-up area ranges from 216sq m (2,320sq ft) to 254sq m (2,737sq ft), certainly a generous allocation for a terraced home. The homes offer four bedrooms with attached bathrooms and a spacious car porch, easily accommodating two parallel parked cars, making this landed property perfect for young executives, first-time homeowners and upgraders.

Construction of the project has already begun, even before the launch. Thus, buyers may enjoy vacant possession of their homes earlier than expected. To further benefit new homeowners, Berjaya and the bankers have agreed on a special arrangement whereby after the house key is handed over, the purchasers can enjoy 12 months of no-payment.

The current offers on purchasing Hazel 2 houses, include:

• instant rebate up to RM4,888*
• low downpayment of RM2,000*
• interest- free easy payment of up to 20%*
• 0% interest payment during construction*

The above respective promotion will end in December 2009. Terms and conditions apply.

For further information, kindly visit the Berjaya Property Gallery, Level 2 (West Wing), Berjaya Times Square, 1 Jalan Imbi, Kuala Lumpur Tel: 03-21428028, Fax: 03-21432028, Website:www.berjayaproperties.com, E-mail:property@berjaya.com.my

Or visit the respective sales office/show units:

Covillea Sales Office:
Bukit Jalil, Kuala Lumpur (beside Arena Green Apartments & opposite National Stadium Entrance)
Tel :018-2200828/018-2200121

1 Petaling Sales Office:
Jalan 1C/149, Off Jalan Sg Besi, KL.
Tel: 03-90571589/018-2208855/018-2200201

Hazel Sales Office:
Berjaya Park Hazel Show House, Jalan Kebun, Shah Alam
Tel : 018-2206068/018-2200076

By The Star

SKN Land plans developments worth RM450m

SKN Land & Development Sdn Bhd, a developer of high-end properties, plans to develop two property projects with a combined gross development value (GDV) of about RM450 million in Kuala Lumpur.

Chairman Mohd Rosly Hussein said one of the projects is a mixed development on a 1.2ha site in Desa Pandan and another is a residential development at Jalan Yap Kwan Seng.

The GDV for the Desa Pandan project is about RM350 million, while the other project has a RM100 million GDV.

"We have already submitted our plans to the Kuala Lumpur City Hall and are waiting for approvals," he told a news conference after the signing of partnership agreement between Asian Finance Bank Bhd and Crest Worldwide Resources Sdn Bhd (CRW) in KL yesterday.
CRW, a member company of SKN Land, is currently developing Crest Jalan Sultan Ismail - a mixed development comprising a 44-storey luxury residence tower and a 26-storey Grade A office tower with a GDV of RM500 million.

Mohd Rosly said the Desa Pandan project will be developed on a vacant land, while the company will demolish the existing building which houses the company's office at Yap Kwan Seng to make way for the residential project there.

SKN Land currently has a 2.8ha landbank in the city centre.

By Business Times

Asian Finance Bank courts foreign buyers for KL project

Asian Finance Bank Bhd (AFB) expects to attract investors from Asia, Australia and the Middle East for its RM500 million mixed development project called Crest Jalan Sultan Ismail in Kuala Lumpur.

Chief executive officer Datuk Mohamed Azahari Kamil expects to announce the results of roadshows held in Qatar, South Korea and Indonesia next month.

The roadshows will be extended to Singapore, Australia and the Philippines, while AFB's associate in London, European Finance House, will help market the property.

"A lot of investors are looking at Malaysia for long-term investments in commercial and residential properties. Demand is tremendous, especially for properties in the Golden Triangle area," he told reporters after the signing of a partnership agreement between AFB and Crest Worldwide Resources Sdn Bhd (CWR) in KL yesterday.
CRW, a member company of SKN Land and Development Sdn Bhd, has appointed AFB as the global marketing representative promoting Crest Jalan Sultan Ismail, as well as the end financier for the project.

The project, which is expected to be completed in 2011, features a 44-storey residential tower and a 26-storey office block spanning 0.28ha.

Out of the 288 Crest residential units, only 92 units are left for sale, while SKN Land plans to sell the Crest office tower en-bloc.

Mohamed Azahari said a few sovereign wealth funds are currently in talks with AFB's majority shareholder, Qatar Islamic Bank, to invest in the Crest office tower.

He added that AFB plans to grow its property loan portfolio, which is currently small. About two-thirds of the bank's loan portfolio is in trade financing.

After three years operating in Malaysia, AFB's funded assets have grown to RM1 billion, of which property comprises about one-fifth.

By Business Times (by Hamisah Hamid)

KFH backs out of buying Menara YNH for RM920mil

PETALING JAYA: YNH Property Bhd is seeking legal recourse against Kuwait Finance House (M) Bhd (KFH) for backing out of a commitment to buy a 45-storey office tower worth RM920mil.

YNH told Bursa Malaysia yesterday it had been notified by KFH in writing that the latter would “no longer be proceeding with the formalisation of the sale and purchase (S&P) agreement as per the terms and conditions of the offer letter dated Jan 11, 2008” for the en bloc purchase of Menara YNH, located along Jalan Sultan Ismail, Kuala Lumpur.

“As such, the board will consult our legal advisors on all of the options available to our group, including but not limited to specific performance and/or seeking damages from KFH,” YNH said.

A YNH spokesman told StarBiz the deal “went sour” because KFH wanted to purchase the property at a lower price than initially agreed.

“It was all an issue of pricing. The property market has softened by about 20% since we entered into the agreement nearly two years ago. KFH wanted to buy at a lower price while we wanted to maintain the original value,” he said.

“We’re not going to sell at a cheaper price because the location and yield in the area are good.”

The spokesman said YNH was seeking legal advice from its lawyers and was confident of a positive outcome.

“An option is to sell the property to the highest bidder and claim the difference from KFH. The agreement is legally binding,” he said.

He also said KFH’s decision to pull out of the deal would not have a negative impact on YNH.

“It’s not a problem as we can sell it to other parties. We have had a lot of interest in the tower.”

He said preliminary earthworks had commenced at the project site and actual construction was expected to begin in a few months.

YNH head of corporate services Daniel Chan was quoted in a news report in August that the deal with KFH “is basically firmed up” although the S&P agreement had yet to be signed.

“As far as we are concerned, the signing of documents is just a formality,” he said.

An analyst from a local bank-backed brokerage said that while the property market had softened, it should not have an impact on YNH.

“The economy is already on the upturn and property prices will also be on the uptrend. The yields in the area are also good and the company can always find other buyers,” he said.

KFH offered to purchase a 50% interest in YNH Land Sdn Bhd’s proposed 45-storey office tower in early 2008. YNH Land is a unit of Kar Sin Bhd, which in turn is a wholly-owned subsidiary of YNH Property.

In a previous note to Bursa, YNH said the office tower was located in the Golden Triangle area where “most prestigious five-star hotels and upmarket office spaces” were located, with easy accessibility and close proximity to efficient public transport facilities like the Putra light rail transport and KL monorail stations.

By The Star (by Eugene Mahalingam)

KFH pulls out of Malaysia property deal

The Malaysian unit of Kuwait Finance House has pulled out of a RM920 million (US$270 million) deal to buy part of an office tower from a local property developer.

Malaysia’s YNH Property Bhd told the stock exchange late on Tuesday that Kuwait Finance House Malaysia (KFHM) had informed it that it would not proceed with the purchase. YNH Property also said it may seek legal demages from the Islamic bank.

No reasons were given for the pullout. A KFHM spokesperson said a statement will be issued later in the day.

Valued at about 1.8 billion ringgit, the YNH tower was to be constructed in the Malaysian capital. YNH Property signed the deal with KFHB last year in January.
Malaysian rating agency RAM Ratings last month revised its outlook on the firm to negative from stable, citing a challenging operating environment in Kuwait that has pressured the credit fundamentals of its parent.

Kuwait Finance House has said that it is not exposed to the debt problems of Dubai state-ownd conglomerate Dubai World or its property unit Nakheel, which have undermined investor confidence and thrown a spotlight on weak commercial real estate markets worldwide.

By REUTERS

Mah Sing sells Apex Tower

Mah Sing Group Bhd is making an en bloc sale of a seven-storey retail office space known as Apex Tower in Sungai Besi, to one Chen Ho-Yean for RM63.09 million.

The sale of the building with 90,126 sq ft of net floor area, will enable Mah Sing Group to lock in a significant amount of property sales

By Business Times

KPJ to acquire RM22m land in Muar for partially completed hospital

KUALA LUMPUR: KPJ HEALTHCARE BHD, a hospital management group linked to the listed AL-AQAR KPJ REIT on Wednesday, Dec 16 announced plans to acquire a plot of freehold land in Muar, Johor for RM22 million in cash.

On the rationale of the deal, the company said: "The proposed acquisition is in line with KPJ group's objective to increase its network of hospitals to locations where private healthcare is in demand."

The company announced in a stock exchange filing yesterday that its unit Maharani Specialist Hospital Sdn Bhd has entered into a Sale and Purchase Agreement (SPA) with Property Base Development Sdn Bhd for the proposed acquisition of land on which stands the partially completed seven-storey Maharani Specialist Hospital Building.

The building, whose construction was abandoned since 2005, is expected to have a gross floor development area of 260,000 sq ft.

In the announcement, KPJ said it intends to commence construction works on the hospital building, immediately upon completion of the SPA. Further development work is expected to cost about RM26 million to be financed by internally generated funds, with completion by end-2011. The building is expected to be used as a private hospital.

The acquisition is to be free of encumbrances and KPJ expects to complete the land acquisition by first quarter of 2010. The deal is not subject to KPJ shareholders' approval but regulatory and government approvals are required, the company said. Ministry of Health approval is necessary for the completed property to be operated as a private healthcare facility.

By The EDGE Malaysia (by Loong Tse Min)

SKN Land to develop two projects in KL

KUALA LUMPUR: High-end property developer SKN Land and Development Sdn Bhd plans to develop a mixed development project in Desa Pandan and a 27-storey residential project in Jalan Yap Kwang Seng.

The Desa Pandan project will involve a gross development value (GDV) of more than RM300 million while the GDV for the Jalan Yap Kwang Seng project is about RM100 million, chairman Mohd Rosly Hussein said Tuesday.

"We have already submitted our plans to the Kuala Lumpur City Hall and are waiting for approvals," he told reporters after an agreement signing ceremony between Crest Worldwide Resources Sdn Bhd and Asian Finance Bank (AFB) here.

Crest Worldwide Resources is a member company of SKN Land.

On the agreement, Mohd Rosly said AFB has now become the global marketing representative for Crest Worldwide in promoting the Crest Jalan Sultan Ismail property.

Crest Jalan Sultan Ismail is a mixed development comprising a 44-storey luxury residence tower and a 26-storey Grade A office tower with a GDV of RM500 million.

"About 70 per cent of the Crest Jalan Sultan Ismail luxury residence tower had already been sold to elite profile buyers," he said.

AFB chief executive officer Datuk Mohamed Azahari Kamil said the bank would promote the Crest Jalan Sultan Ismail property through the bank's global network of branches and corporate offices.

The bank, he said, planned to organise roadshows starting next month to promote the property in Qatar, South Korea, Indonesia, Singapore, Australia and the Philippines.

By Bernama

IJM Land's S2 heights, an extension to Seremban 2 township

SEREMBAN: Situated on elevated land beside the developed Seremban 2 township is S2 Heights, IJM Land's latest property development in Negeri Sembilan's state capital.

S2 Heights covers 600-hectares (1,500 acres) of freehold land.

IJM Land Group Sales and Marketing Manager, Susan Teh said it is being planned as an extension to the Seremban 2 township.

"S2 Heights aims to be the new showcase for a collection of modern homes within a low density neighbourhood. The first phase development of link homes launched less than two years ago, are fully sold," she told Bernama here on Tuesday.

She said purchasers of these homes have received their keys and are are satisfied with the elevated location, breezy air, good view and wide open spaces.

Now, she highlighted, S2 Heights is offering three new residential homes.

These are the much awaited 22' x 70' single storey Lyrica link houses, the 24' x 75' double storey link homes (Symphony 2) and the Sonata double storey semi-detached accommodation.

"These homes are being built in the same tradition that has made Seremban 2 a distinctive neighbourhood, a well planned community of quality homes, extensive facilities and on time delivery.

"Showhouses for these three homes are ready and interested customers are urged to book by December 31 to avoid disappointment, as a very limited units are available at an attractive interest rate," she added.

Susan said the entire S2 Heights development has been conceived to have generous road frontage to reduce traffic congestion within the development.

"One of the many facilities available to S2 Heights residents is a 19-hectare Hill Town Park and a Chinese school. The park will serve not only the residents of the development but the total population of Seremban as well.

"After a leisurely stroll up the park, one can take full advantage of the spectacular view and surrounding greenery, all of which are rare and forgotten experiences in today's hectic lifestyle.

"Being conveniently situated beside Seremban 2, S2 Heights also takes advantage of the existing amenities and facilities provided by the established township, including schools, shopping convenience, F&B outlets, banks, government offices, a sports complex and recreational city park," Susan explained.

By Bernama

B-Land records RM112.9m pretax for Q2

BERJAYA Land Bhd has recorded a higher pre-tax profit of RM112.9 million for the second quarter ended October 2009, compared to RM49 million last year, mainly due to lower impairment loss on quoted investments and investments in associated companies as well as higher profit contribution from the property development division.

Group revenue for the current quarter was about 7 per cent lower at RM983.1 million compared to RM1.1 billion recorded last year mainly due to lower revenue from the Number Forecast Operator (NFO) business operated by Berjaya Sports Toto Bhd (BToto) which reported stronger sales in the previous year arising from several high Jackpots in the Mega 6/52 game.

The hotels and resorts division also reported lower revenue affected by the outbreak of Influenza A(H1N1) and the global economic conditions.

For the 6-month period ended 31 October 2009, the Group reported a drop in revenue of about 4 per cent to RM1.9 billion and pre-tax profit increased by about 75 per cent to RM232.8 million compared to the corresponding period last year.
The lower revenue was mainly due to lower revenue contributions from the NFO and hotels and resorts businesses in the Group.

Pre-tax profit was much higher due to substantial write-back of impairments in value of investments in associated companies and quoted investments and gain on capital distribution by an associated company.

In the previous year, the Group incurred substantial impairments in value of investments in associated companies and quoted investments due to the then poor stock market performance.

"Given the uncertain global economic conditions, the Directors envisaged that the property market will be soft and the operating performance of the hotels and resorts and business may also continue to be affected by the outbreak of Influenza A(H1N1). However, the NFO business under BToto is expected to remain resilient," the company said in a statement.

With this backdrop and barring unforeseen circumstances, the the Group’s operating performance for the remaining quarters of the financial year ending 30 April 2010 are expected to remain satisfactory, it added.

By Business Times

CEO: PNB may list property assets

KUALA LUMPUR: Permodalan Nasional Bhd (PNB) is seeking ways to “maximise” returns on its newly-merged property unit, including a possible initial share sale.

“We will have to look at what’s the best for us,” chief executive officer Tan Sri Hamad Kama Piah Che Othman said yesterday. “It’s a matter of opportunity,” he said.

“It depends on the market conditions and the value that we create.”

Companies have been taking advantage of a resurgent stock market to list, with Maxis Bhd raising a record US$3.3bil last month.

JCY International Bhd, a hard disk drive components maker, also plans to sell shares, according to a draft prospectus filed with the Securities Commission on Dec 9.

PNB, which manages more than RM100bil of assets, has completed the merger of its three property companies – Island & Peninsular Bhd (I&P), Pelangi Bhd and Petaling Garden Bhd – after taking them private, Hamad Kama Piah said.

The asset manager bought I&P for RM670.5mil and Petaling Garden for RM477mil in 2007. It took over Pelangi two years earlier.

On the Government’s push to trim stakes in state-linked companies to bolster liquidity, Hamad Kama Piah said: “You can sell, but returns must be good for the unit holders.”

PNB “hopes” for the Malaysian stock market to do better next year as the Government pushed through efforts to revive the economy, he said.

The asset manager was studying ways to develop land surrounding two stadiums in the nation’s capital, he said without elaborating.

By Bloomberg

PNB studying skyscraper project

Permodalan Nasional Bhd (PNB) has said that it will study the viability of building a 100-storey skyscraper in the vicinity of Stadium Merdeka.

"We are still studying the matter," chief executive officer Tan Sri Hamad Kama Piah Che Othman said when asked about the project.

The New Straits Times had reported that three sites in Kuala Lumpur city had been identified for the development of iconic structures to spur growth in the economy.

One of them is the area surrounding Stadium Merdeka owned by PNB's subsidiary company.
"We need to bring this to the board to discuss further," Hamad Kama Piah said after the announcement of Amanah Saham Bumiputera's income distribution in Kuala Lumpur yesterday.

He did not indicate when the board meeting would take place, but said there would be an announcement as soon as a decision was made.

"We are not sure when the announcement will be made, but it will be soon," Hamad Kama Piah said, adding that the site concerned was owned by one of its subsidiary companies.

He declined to name the company or share details of the proposed development.

By Business Times (by June Ramlee)

Singapore Islamic REIT plans

SINGAPORE: ARA Asset Management and Qatar's Regency Group plan to launch the first real estate investment trust (REIT) here that will comply with Islamic principles as investor interest returns to REITs.

The proposed Islamic, or syariah-compliant, REIT will comprise hotels and serviced apartments in Qatar with an initial portfolio of around 164,000 sq m of gross floor area, said ARA, which is part-owned by Hong Kong property giant Cheung Kong.

ARA hopes to list the proposed REIT in the second half of next year. It declined to give an estimated value for the properties, which belong to Regency, a large Qatari developer which also owns car rental and travel agencies.

Singapore's REIT sector is the third largest in Asia, after Japan and Australia.
Unlike their regional counterparts which stay closer to home, the city-state's REITs invest across Asia and currently own around US$34 billion (US$1 = RM3.41) worth of properties ranging from industrial parks in India to malls in China.

Interest in Singapore REITs has picked up in the past month, with several trusts raising new equity or announcing acquisitions as confidence in Asian commercial property markets returns.

Suntec Real Estate Investment Trust, a REIT managed by ARA,last week raised S$152.9 million (S$1 = RM2.45) by selling new units through a private placement that was more than five times oversubscribed.

DBS Group is the financial adviser for the proposed ARA REIT.

By Reuters

World-class level

With 2010 mere weeks away, what are real estate agents, negotiators, property investors and developers expecting in the new year?

Plenty, according to the organising committee for MAREC 10, the brand name for the Malaysian Annual Real Estate Convention, an annual event organised by the Malaysian Institute of Estate Agents (MIEA).

With the theme “The Millionaire Real Estate Agent” for the convention to be held on Jan 23 and 24, the organising committee hopes to prepare real estate industry players to take their business to world-class level.

The topics and speakers have been selected to introduce new practices and ideas in managing the real estate agency business to achieve greater success. Topics covered in the programme include:

Left to right: David Ong, Abdul Rahim Rahman, Soma Sundram.

Topic 1: Getting ready for a liberalised real estate market in Malaysia
The service industry is going to be opened to foreign participation gradually from 2011.

Many firms are already moving forward to position their brand, services and partnerships with foreigners. A well-known brand assures customers of its reliability, professional services and trustworthiness.

This topic will provide a glimpse into the impending liberalisation of the real estate industry. Are you ready? Can you keep up? And what about globalisation and its effects due to the liberalisation policy? Will the industry see significant changes? Which types of estate agents are expected to be market leaders and which are expected to lag behind?

Soma Sundram, the speaker for this topic, has represented MIEA in discussions with the Ministry of International Trade and Industry (MITI) and Ministry of Finance on the liberalisation of the real estate sector. He has been actively involved in the real estate industry for nearly 20 years and runs his own firm, Soma Sun Realtors. Sundram is the immediate past president of MIEA.

Topic 2: Expanding globally – do’s and don’ts
Liberalisation is not only about foreigners coming into the market as competitors, but it is also about branding your business and entering the market in other countries to expand your business globally.

This session takes a critical look at how estate agencies in Malaysia can expand globally and create a vast war chest of funds in the process. The topic will discuss how the estate agency business is practised worldwide with critical analysis on current trends. Weaknesses and pitfalls in expanding globally will be highlighted and pointers given to overcome them while taking advantage of current opportunities available.

Datuk Abdul Rahim Rahman, the speaker for this topic, is the founder and executive chairman of Rahim & Co, a real estate property consultancy company with a network of 16 offices nationwide and two international offices. He was the first Malaysian to be elected deputy world president for the International Real Estate Federation (FIABCI) in 1990 and has been awarded the FIABCI Medal of Honour.

Topic 3: It’s not about the money
Is money and wealth the “be all and end all” of everything? Is financial success the only reason we work? Are there other things that are more important than money? Will you be entirely happy if your pockets are loaded but your soul is hungry?

Money will not able to buy everything in the quest of a complete and wholesome life. This paper will attempt to analyse such questions and identify solutions to help practitioners create a wholesome life for themselves, one where financial success is tempered with the need to pay attention to other aspects of life as well.

David Ong, the speaker for this topic, is the founder and president of Reapfield Group of Companies. His vision of employing well trained personnel and providing quality and professional real estate services continue to drive the company forward. Reapfield is the first recipient of the MIEA National award for the Real Estate Agency of the Year 2008 and SUPERBRANDS Malaysia award. Reapfield was recently awarded the SME Brand Excellence Award 2009.

MAREC 10 is scheduled for Jan 23 and 24 at the Putra World Trade Centre in Kuala Lumpur. There will also be a networking dinner to welcome delegates, VIPs and speakers on Jan 22.

Between now and Dec 31, early bird discounts are offered for members, non-members and negotiators. The convention is open to the public at RM800 per participant.

For details, contact MIEA. Tel: 03-7960 2577. Fax: 03-7960 3757 E-mail: secretariat@miea.com.my Website:www.miea.com.my.

By The Star