Opened, world's tallest building at 825 meters

Fireworks light up, Burj Khalifa , the world's tallest building during the official opening ceremony in Dubai, United Arab Emirates, Monday. (AP Photo/Kamran Jebreili)

DUBAI, United Arab Emirates: Dubai opened the world's tallest skyscraper Monday in a blaze of fireworks, then added a final flourish: It renamed the tower for the head of neighboring Abu Dhabi, whose billions bailed out Dubai amid last year's financial crisis.

Long known as Burj Dubai - Arabic for "Dubai Tower" - the building rises 2,717 feet (828 meters) from the desert.

The $1.5 billion "vertical city" of luxury apartments and offices and a hotel designed by Giorgio Armani also plans to have the world's highest mosque (158th floor) and swimming pool (76th floor).

Its backers wanted the skyscraper to be a monument to the boundless, can-do spirit of Dubai - one of a federation of seven small sheikdoms that make up the United Arab Emirates - but the timing could not be worse.

Property prices in parts of Dubai collapsed by nearly half in the past year, the result of easy credit and overbuilding during a real estate bubble that has since burst.

Riding to the rescue was Sheik Khalifa bin Zayed Al Nahyan, the ruler of oil-rich neighbor Abu Dhabi, which pumped tens of billions of dollars into Dubai last year as it struggled to pay enormous debts.

As officials opened the tapering metal-and-glass spire with fireworks and multicolored lights, they unexpectedly announced it would be renamed Burj Khalifa, to honor the Abu Dhabi leader who is also president of the UAE.

Thousands of cheering, clapping spectators watched as a tally projected on huge screens at the opening ceremony revealed the tower's most closely guarded secret - its height of 2,717 feet.

That made it more than 1,000 feet (305 meters) higher than the skyscraper known as Taipei 101 in Taiwan, which at 1,667 feet (508 meters) had been the world's tallest since 2004.

The tallest building in the United States, the Willis Tower in Chicago, comes in at 1,451 feet (442 meters).


Another view of world's tallest building.

Before they were destroyed in the Sept, 11, 2001, attacks, the World Trade Center towers both topped 1,360 feet (414.5 meters).

The Freedom Tower being planned for the site will measure 1,776 feet (541 meters), with completion estimated in 2013.

The exact number of floors for the Burj Khalifa is not known, and could reflect how the developer chose to calculate the total.

Mohammed Alabbar, chairman of the tower's developer Emaar Properties, initially said Monday it had "more than 200" stories, but he later backtracked to more than 165 inhabitable floors, given its tapered top.

Promotional materials sent before the tower's opening said it contained 160 stories.

Developers say they are confident in the safety of the tower, which is nearly twice the height of New York's Empire State Building.

Greg Sang, Emaar's director of projects, said the Burj Khalifa has "refuge floors" at 25 to 30 story intervals that are more fire resistant and have separate air supplies in case of emergency.

Its reinforced concrete structure, he said, makes it stronger than steel-frame skyscrapers.

"A plane won't be able to slice through the Burj like it did through the steel columns of the World Trade Center," he said.

Dubai has not been a target of terrorist attacks or threats that have been made public.

The tower was designed by Chicago-based Skidmore, Owings & Merrill, which has a long track record in engineering some of the world's tallest buildings, including the Willis Tower.

Ahmed Elghazouli, a professor of structural engineering at Imperial College London who was not involved with the Burj's construction, said such groundbreaking buildings typically employ some of the world's best engineers, and go through more rigorous testing and require more studies during design than standard towers.

"I have no doubt that it has been looked after very well in terms of design and construction," he said when asked about the building's safety.

"I would be much more comfortable getting into a building like this knowing that so much background work has gone into it."

Dubai was little more than a sleepy fishing village a generation ago, but it boomed into the Middle East's commercial hub in the past two decades on the back of business-friendly trading policies, relative security, and vast amounts of overseas investment.

With little oil of its own, Dubai relied on cheap loans to pump up its international clout during the frenzied boom years.

But like many overextended homeowners, the emirate and its state-backed companies borrowed too heavily and then struggled to keep up with payments as the financial crisis intensified and credit markets froze up.

The sheikdom shocked global markets last year when it unexpectedly announced plans to reorganize its main state-run conglomerate Dubai World and sought new terms in repaying some $26 billion in debt.

It got some aid from Abu Dhabi's bailouts. Dubai's hereditary ruler, Sheik Mohammed bin Rashid Al Maktoum, in recent months has increasingly spoken of the close relationship between the two emirates, declaring in November that "Dubai and Abu Dhabi are one" and will "be there for each other."

Sheik Mohammed serves as vice president and prime minister of the UAE federation. Analysts had questioned what Dubai might need to offer in exchange for the financial support it received from Abu Dhabi, which controls nearly all of the UAE's oil wealth.

Abu Dhabi provided $25 billion last year as Dubai's debt problems deepened.

"It's really quite remarkable to have to name your biggest and most memorable landmark after the living monarch of a neighboring emirate," said Christopher Davidson, a professor at the University of Durham who has written extensively about the UAE.

Burj developer Emaar is also partly owned by the Dubai government, but is not part of struggling Dubai World, which has investments ranging from Dubai's manmade islands and seaports to luxury retailer Barneys New York and the ocean liner Queen Elizabeth 2.

Emaar's Alabbar said the landmark Burj is 90 percent sold in a mix of residential units, offices and other space, offering a counterpoint to Dubai's financial woes.

At their peak, some apartments in the Burj were selling for more than $1,900 per square foot, although they now can go for less than half that, said Heather Wipperman Amiji, chief executive of Dubai real estate consultancy Investment Boutique.

Amiji said some buyers may struggle to find tenants at going rates once the tower's expected high service charges are factored in.

The building ranks as the world's tallest structure, beating out a television mast in North Dakota.

Early designs for the Burj had it edging out Taipei 101 by about 33 feet (10 meters), said Bill Baker, the building's structural engineer.

"We weren't sure how high we could go," said Baker, of Skidmore, Owings & Merrill.

"It was kind of an exploration ... a learning experience."

Work began in 2004 and moved rapidly.

At times, new floors were being added almost every three days.

During the busiest construction periods, some 12,000 people worked at the tower each day, according to Emaar.

Low-wage migrant workers from the Indian subcontinent provided much of the muscle.

The Burj is the centerpiece of a 500-acre development that officials hope will become a new central residential and commercial district in this sprawling and often disconnected city. It is flanked by dozens of smaller but new skyscrapers and the Middle East's largest shopping mall.

That layout - as the core of a lower-rise skyline - lets the Burj stand out prominently against the horizon.

It is visible across dozens of miles of rolling sand dunes outside Dubai. From the air, the spire appears as an almost solitary, slender needle.

An observation deck on the 124th floor opens to the public Tuesday, with adult tickets starting at 100 dirhams, or just over $27 apiece.

The ride to the top took just over a minute during a visit for journalists Monday.

Dubai landmarks like the sail-shaped Burj al-Arab hotel and the manmade Palm Jumeirah island were visible through the haze.

The Burj itself cast a sundial-like shadow over low-rise houses and empty sand-covered lots stretching toward the azure Persian Gulf.

By AP

Burj Dubai opens amid hard times

Emirati men walk past Burj Dubai — AFP

DUBAI: Started at the height of the economic boom and built by some 12,000 labourers, the world’s tallest building opened yesterday in Dubai as the glitzy emirate seeks to rekindle optimism after its financial crisis.

Burj Dubai, whose opening has been delayed twice since construction began in 2004, marked another milestone for the deeply indebted emirate with a penchant for seeking new records.

Dubai, one of seven members of the United Arab Emirates, gained a reputation for excess with the creation of man-made islands shaped like palms and an indoor ski slope in the desert.

With investor confidence in Dubai badly bruised by the emirate’s announcement in November that it would seek a debt standstill for one of its largest conglomerates, the Burj Dubai is seen as a positive start to the year after a bleak 2009.

The project has been scrutinised by human rights groups, who have objected to its treatment of labourers, as well as by environmentalists who said the tower would act as a power vacuum, increasing the city’s already
massive carbon footprint.

But despite the criticism, many say the edifice, believed to have cost US$1.5bil to build, is an architectural marvel. The tower’s height has been kept a closely guarded secret until now. Developer Emaa Properties PJSC will reveal the height – known to exceed 800 metres (2,625 feet) – today and Dubai’s ruler will inaugurate the opening.

Experts believe Dubai’s recent financial troubles have not hurt sales of about 1,100 residential units in the Burj – meaning tower in Arabic – saying they were nearly all sold.

Dubai’s real estate sector crashed at the end of 2008 when the global financial crisis hit the emirate after a six-year economic boom. Thousands of jobs were slashed and projects worth billions of dollars were cancelled or delayed.

With analysts suggesting tax-free Dubai might sell some of its assets to boost revenues and slash US$80bil in debt, many wondered if the tower was on the list for grabs.

By Reuters

Tower REIT gets RM5.8m surplus from revaluation

KUALA LUMPUR: Tower Real Estate Investment Trust will post a RM5.8 million surplus from the revaluation of its three prime land commercial properties here.

These include the 32-storey Menara HLA in Jalan Kia Peng and HP Towers, which comprise two blocks of nine and 21 storeys each, in Jalan Gelenggang within the Bukit Damansara enclave.

Tower had also revalued its 20-storey Menara ING, which is situated in Jalan Raja Chulan, the company said in statement to the exchange today.

"The purpose of the revaluation was to ascertain the current market values of Menara HLA, HP Towers and Menara ING for accounting purposes in line with the Financial Reporting Standard (FRS) 140.

"Under the fair value model of FRS 140, the fair value of the investment property shall reflect market conditions at the balance sheet date," Tower said.

Following the revaluation which was undertaken last month (December 2009), Menara HLA now has a market value of RM295 million, a surplus of RM4.9 million on top of the commercial entity's RM290.13 million net book value as at Nov 30 2009.

Menara ING registered an almost RM9 million surplus, resulting in a market value of RM94 million compared with its NBV of RM93.1 million. HP Towers which is worth RM207 million, however, saw no change to its market value.

Based on Tower's latest unaudited quarterly financial statement as at Sept 30, 2009, its net asset value per unit of RM1.5994 will increase to RM1.6196 upon incorporation of the revaluation surplus of RM5.8 million.

The valuation exercise was conducted by Rahim & Co Chartered Surveyors Sdn Bhd.

By The EDGE Malaysia (by Chong Jin Hun)

Work on Menara YNH to start in 6 months

An artist’s impression of Menara YNH

PETALING JAYA: YNH Property Bhd expects within the next six months to start work on its proposed Menara YNH project on three acres next to the Shangri-La Hotel along Jalan Sultan Ismail, Kuala Lumpur.

Although Kuwait Finance House Bhd (KFH) had two weeks ago aborted its plan to purchase one of the two office blocks at Menara YNH, YNH said it would proceed with building the project.

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

YNH head of corporate strategy Daniel Chan said the company was currently making some amendments to the project design to improve efficiency of tenant space by 10% to 15%.

The green project, built according to specifications of the Green Building Index, will have total net lettable space of 1.5 million sq ft.

“We will be resubmitting the amended project plan for approval. The development order was obtained last December,” Chan told StarBiz.

Chan said the project was within the company’s target and would be completed in five years.

The project will have two 45-storey office blocks with 600,000 sq ft of net lettable space each to be built on top of a three-storey retail podium.

The gross development value (GDV) of Menara YNH will be around RM2bil or averaging about RM1,500 per sq ft.

Chan said work on the retail podium would kick off first and would be completed within three years.

A group of local and foreign investors had early last year signed a sale and purchase agreement for the 300,000 sq ft of retail space for RM300mil.

On whether the company was looking for other buyers for the other parts of the project, Chan said: “We are not in any hurry to sell unless a good offer turns up. So far, we are talking to a few interested parties. With the strategic location of the property, we are confident of good interest and sealing a good deal.”

YNH would keep its options open, he said, adding that various parties had offered to team up as joint-venture partners for the project or buy over the property.

“We are optimistic of the project as its value has appreciated. When the project was first mulled three to four years ago, its GDV was only RM1bil but, today, its value has doubled,” he said.

Before KFH, CapitaLand Ltd of Singapore had more than two years ago agreed to a 40% share in a joint venture with YNH for the project but the deal fell through over disagreement in the land cost.

On prospects ahead for YNH, Chan said the Sitiawan-based property company had projects worth RM11bil over the next 15 to 20 years, and YNH also had unbilled sales of RM856mi from its existing projects that would be realised over the next three years.

This year, the company has lined up project launches worth some RM3bil, including Menara YNH.

The Fraser Residence KL mixed development, comprising serviced apartments, office and retail space, behind Renassisance Hotel with a GDV of RM550mil will be launched in June.

Another mixed development, the RM900mil Kiara 163 (formerly known as D’Kiara Place) located beside Plaza Mont’Kiara, will also have serviced apartments, office and retail components.

Chan said another prime project to look out for would be located on 100 acres near Resort World in Genting Highlands. The mixed development with a GDV of RM2bil will be launched in 2011 for completion in 10 years.

For the financial year ended Dec 31, YNH’s earnings should take a hit from the slow property market and deferment of project launches caused by the global financial crisis.

“Next year (2010) should be a better year and we certainly look forward to a double-digit growth,” Chan added.

By The Star (by Angie Ng)

World's tallest building to be opened Monday

The world's tallest building - AP

DUBAI: Dubai is set to open the world's tallest building amid tight security on Monday, celebrating the tower as a bold feat on the world stage despite the city state's shaky financial footing.

But the final height of the Burj Dubai - Arabic for Dubai Tower _ remained a closely guarded secret on the eve of its opening.

At a reported height of 2,684 feet (818 meters), it long ago vanquished its nearest rival, the Taipei 101 in Taiwan.

The Burj's record-seeking developers didn't stop there.

The building boasts the most stories and highest occupied floor of any building in the world, and ranks as the world's tallest structure, beating out a television mast in North Dakota.

Its observation deck - on floor 124 - also sets a record.

"We weren't sure how high we could go," said Bill Baker, the building's structural engineer, who is in Dubai for the inauguration.

"It was kind of an exploration. ... A learning experience"

Baker, of Chicago-based architecture and engineering firm Skidmore, Owings & Merrill, said early designs for the Burj had it edging out the world's previous record-holder, the Taipei 101, by about 33 feet (10 meters).

The Taiwan tower rises 1,667 feet (508 meters).

The Burj's developer, Emaar Properties, kept pushing the design higher even after construction began, eventually putting it about 984 feet (300 meters) taller than its nearest competitor, Baker said.

He is keeping quiet about the exact height. Dubai's ruler will open the tapering metal-and-glass spire with a fireworks display Monday evening.

Security is expected to be tight.

Local newspapers quoted Maj. Gen. Mohammed Eid al-Mansouri, head of the protective security and emergency unit for Dubai Police, saying more than 1,000 security personnel, including plainclothes police and sharpshooters, will be deployed to secure the site for the opening.

Work on the Burj Dubai began in 2004 and continued rapidly.

At times, new floors were being added almost every three days, reflecting Dubai's raging push to reshape itself over a few years from a small-time desert outpost into a cosmopolitan urban giant packed with skyscrapers.

By January 2007, thousands of laborers, many of them brought in on temporary contracts from India, had completed 100 stories.

The finished product contains more than 160 floors.

That is over 50 stories more than Chicago's Willis Tower, the tallest record-holder in the U.S. formerly known as the Sears Tower.

At their peak, some apartments in the Burj were selling for more than $1,900 per square foot, though they now can go for less than half that, said Heather Wipperman Amiji, chief executive of Dubai real estate consultancy Investment Boutique.

Besides luxury apartments and offices, the Burj will be home to a hotel designed by Giorgio Armani.

It's also the centerpiece of a 500-acre development that officials hope will become a new central residential and commercial district in this sprawling and often disconnected city.

It is flanked by dozens of smaller but brand-new skyscrapers and the Middle East's largest shopping mall.

That layout - as the core of a lower-rise skyline - lets the Burj stand out prominently against the horizon.

It is visible across dozens of miles of rolling sand dunes outside Dubai.

From the air, the spire appears as an almost solitary, slender needle reaching high into the sky.

The Burj's opening comes at a tough time for Dubai's economy. Property prices in newer parts of the sheikdom have collapsed by nearly half over the past year.

The city-state turned to its richer neighbor Abu Dhabi for a series of bailouts totaling $25 billion in 2009 to help cover debts amassed by a network of state-linked companies.

Burj developer Emaar is itself partly owned by the government, but is not among the companies known to have received emergency cash.

Emaar has said the entire Downtown Burj Dubai development, which includes the tower, will cost $20 billion to build.

Sales of properties around the Burj are meant to help pay for the tower itself, which analysts say is unlikely to be profitable on its own.

Jan Klerks, research and communications manager for the Council on Tall Buildings and Urban Habitat, which tracks world's tallest claims, said the building's real value might be that it is the "biggest city marketing campaign" Dubai could have come up with.

"Put your name and that of the Burj Dubai on an envelope, and no postal service in the world will have problems delivering the mail," he said.

By AP

RM13 billion 'Space City' near Seremban

SEREMBAN: A “Space City” project costing up to RM13bil, to be financed by a Dubai-based private pension fund from India, is set to take shape near here as early as the end of this year.

The project will be similar, although not in size, cost and lavishness, to Abu Dhabi’s RM750bil Space City project that will be built over the next 10 years.

The local Space City project will be built on 400ha near Bandar Sri Sendayan-Bandar Enstek near here, and close to the KL International Airport, Putrajaya, Cyberjaya and the Education Ministry’s RM1.2bil complex which will house several institutes and universities, according to Negri Sembilan Mentri Besar Datuk Seri Mohamad Hasan in an interview.

“The ultra modern project will take shape in phases over 15 years ... among the tallest structures under the first phase will be a skyscraper over 40 storeys high which will be the tallest building in the state,” he said.

“It is going to be built on a totally new concept and will be the nation’s most modern city. It is something that you don’t see anywhere else here,” he said, adding that the memorandum of understanding for the project would be inked in the middle of this year.

He said the pension fund has agreed to the terms and conditions to buy the land from Mentri Besar Inc.

“We have negotiated a deal and everything is in order. In fact the investors were here recently for a due diligence and they were extremely happy with the way the project will be carried out,” he said, adding that the state government did not give the pension fund any incentives for the purchase of the property.

The project, Mohamad said, would not be carried out on a joint venture basis between MBI and the pension fund.

“We only sold them the land based on set conditions and they will be bringing the cash from abroad to finance it. We would not be forking out any cash for the project,” he said.

Mohamad said he had also been briefed by the project’s London-based architects and US-based town planners on details of the project during a visit abroad recently.

He added that the Space City would also house the Formula One City where competing teams would be able to set up their research and development (R&D) and other facilities.

“They would no longer have to stay in Kuala Lumpur when they come here for the race. It can be taxing to have to commute between both points during the race, what more with the congestion in the federal capital,” he said.

At present, these teams use helicopters to ferry their officials from Kuala Lumpur to the F1 track in Sepang.

The first phase of the project would be a mixed development with residential and commercial properties.

“The residential properties would cost more than RM500,000 and locals would be encouraged to invest here. In fact, the developers would also be allowed to sell these properties to foreigners,” Mohamad said.

“What is certain is that the Space City project would help boost the property market here. In fact the former 513 Felda LBJ settlers who became millionaires after they sold their properties would be able to make a lot more if they decide to dispose of the 0.8ha we gave each family,” he added.

The mentri besar said the Space City project would be carried out at the same time as Sime Darby’s Central Vision Valley (CVV) project located some 8 km away.

The CVV project will be carried out on 3,000ha, comprising mixed development, sports and educational institutions.

Mohamad said the proceeds to be raised from the sale of the 400ha would be used by the state government to repay loans taken from the federal government and the Pensions Trust Fund, some of which would mature this year.

By The Star (by SARBAN SINGH)

SP Setia to set benchmark in retail mall development

Property developer SP Setia Bhd, may build towers and buildings at the multi-billion ringgit Setia City commercial hub, its flagship township in Shah Alam, Selangor, by as early as 2012.

The 63.2ha Setia City will be developed in two phases.

Phase 1 comprises the 1.23 million square ft Setia City Mall, worth RM750 million, and a central park, estimated to cost more than RM10 million.

Phase 2 will feature more than 20 low- and high-rise buildings, including office towers, corporate towers, serviced apartments, institutions and hospitals.

Bandar Setia Alam Sdn Bhd general manager Tan Hon Lim said the development of phase 2, which is still in planning stage, will commence pending market conditions and the completion of phase 1.
"We have started earthworks for phase 1. Actual construction will commence in first quarter of the year. Our target is to complete the mall and park by end-2011," Tan said in an interview with Business Times recently, at Setia Alam.

Bandar Setia Alam, a SP Setia unit, will build the mall with Lend Lease Asian Retail Investment Fund 2 Ltd in a 50:50 joint venture, on 12.2ha.

Lend Lease is part of Lend Lease Corp Ltd, an Australian property group.

Tan said Setia City Mall, which is SP Setia's first retail mall development will set the benchmark in sustainable retail development.

He said it will be the first and only mall to be included under the Green Building Index's pilot accreditation scheme.

Setia City Mall will house a department store, 250 local and international specialty stores, a number of major anchor retailers and an entertainment precinct.

Tan said SP Setia is in talks with several local and foreign hospital operators to take up shop at Setia City.

"We are also talking to institutions. We want Setia City to be a vibrant development with local and international presence," Tan said.

By Business Times (by Sharen Kaur)

Property stocks upgraded at CIMB Invt

Malaysia’s property industry was upgraded to “overweight” from “trading buy” at CIMB Investment Bank Bhd, which said real estate stocks are cheap and the sector’s fundamentals are improving “significantly.”

Eastern & Oriental Bhd, Hunza Properties Bhd, SP Setia Bhd. and United Malayan Land Bhd had their ratings raised to “outperform” from “trading buy,” CIMB said in a report today.

Hunza climbed 4.6 per cent to RM1.59, the highest level since August 14. SP Setia added 1.5 per cent to RM3.98. UEM Land Holdings Bhd gained 2.7 per cent to RM1.53.

By Bloomberg

Property: The pull and push factors

The property sector has some way to go unless the current supply of high-end condominiums and the various en bloc sales of both commercial and residential units are mopped up.

WELL INTO the second half of last year, a friend tossed around the idea of buying a property. At the time, the outlook for the world economy was rather bleak.

The property market was soft and developers were offering home loan schemes in which buyers paid a small downpayment and were billed only when the property was completed. The mantra at that moment was: “Now is the time to buy.”

Initially, the friend looked at high-end landed housing with variations of the gated and guarded concept. Next were various high-end condominium projects around the KLCC area.

For three to five months, nearly every weekend was filled with visits to housing projects and talking to agents specialising in different areas and market segments. It is one way to learn a thing or two about the property market.

Agents, homeowners, bankers and developers will give you different views. All of them want to meet certain targets and the outlook for the property market for the coming year is going to be challenging.

Malaysia’s economy may have turned the corner, but the sector has some way to go unless the current supply of high-end condominiums and the various en bloc sales of both commercial and residential units are mopped up. Landed units are expected to do well going forward.

As property consultants Regroup Associates Sdn Bhd executive chairman Chris Boyd puts it: “We are not out of the woods in the high-end condominium sub-sector.”

Because most developers, if not all, have deferred projects the past year, they will be busy trying to get you to part with your money or take up large loans this year. A number of them are planning launches this year but are keeping things pretty much under wraps as they wait to see how things pan out.

Developers will continue to work with banks to offer innovative financing packages. For example, a condominium developer in a very dense location is offering units for a small downpayment and the rest to be paid after five years.

It takes three years to complete a condominium project. The developer is offering five years as a carrot because that neighbourhood serves the tenancy market and rentals are declining.

Because expatriates have been recalled in the wake of the financial crisis, owners have been left with vacant units. It is, therefore, a gamble that in five years, the foreigners will be back. Coupled with that is the low 2% fixed deposit rates. These are the push and pull factors.

Condo considerations

In the condominium enclaves of KLCC and Mont’Kiara, prices have come down 25% from their peaks. An analyst, who wished to remain anonymous, expects prices to ease further this year. Traipsing around the KLCC projects reveals that developers are giving double-digit discounts in the primary market for some of the most prestigious and attractive projects in the Klang Valley, if not Malaysia.

They have to do this because as long as the property is not sold, they are left with a holding cost. Added to that is the huge number of vacant units. There is an existing supply of about 5,700 units in the KLCC area and its vicinity and an additional 5,800 units are expected to come onstream in the next two to three years.

“The KLCC vicinity caters mainly to the expatriate market, but as long as the West remains in the doldrums, the multinational companies will hold back on sending their people here,” the analyst says.

However, it must be noted that the interest in KLCC properties is atypical because the area has several projects that boast unique features.

Rentals in the KLCC area, which hovered between RM4 and RM5 per sq ft early last year, may continue to soften and fall below RM3 per sq ft as more projects are completed in 2010 and handed over to buyers, says an agent who specialises in that market.

“Tenants had been asking landlords to lower rentals last year. They are expected to do so this year; otherwise, they may just move to the next completed condominium,” he says.

Notwithstanding the glut there, developers continue to be enchanted with the view of the Petronas Twin Towers. UOA is expected to launch Binjai 8 this year and Ireka Corp Bhd has bought some along Jalan Kia Peng, which is a stone’s throw away from the iconic location.

Says an industry observer: “We are more positive about owner-occupied projects, preferably landed units.” He notes that Mont’Kiara is already a very dense neighbourhood, while the KLCC market is generally for high-end living.

As seen from the previous years with the launches by Island & Peninsular Bhd, there was a pent-up demand for landed units. This is expected to continue going forward, especially for landed units. Says an observer: “Landed units in good locations will always have a demand.”

Hence, he expects the overall sales to be quite sustained for the residential sub-sector this year. Nevertheless, he made a distinction between landed and high-rise projects.

An agent specialising in Damansara Heights says there are few sellers there.

“There is a healthy demand for landed units here,” he says. Prices of SPPK’s Seri Beringin, mostly semi-detached units, have been holding up well throughout the difficult months of last year and are expected to remain so going forward.

In some of the upmarket areas like Bangsar and Damansara Heights, future supply is said to be limited.

Commercial gloom?

In the commercial sub-segment, the story is slightly different. There is a clear oversupply of office space. Several weeks ago, Kuwait Finance House (KFH), which has been on an acquisition binge in Malaysia, called off the RM920mil acquisition of Menara YNH in Jalan Sultan Ismail, Kuala Lumpur.

Says an industry observer: “Any cordial resolution to the deadlock is unlikely to happen. With a slew of en bloc sales being aborted since the onset of the global financial crisis, it is also unlikely that YNH Property Bhd will be able to secure another buyer without having to lower its asking price substantially from the initial asking price of RM1,250 per sq ft (psf) previously agreed with KFH.”

He adds that prices above RM1,000 psf are difficult to achieve in the near term in view of the large incoming supply of office space over the next three years.

His views are supported by the more than 20% price reduction seen in the sale of Menara Citibank from RM1,000 psf to RM828 psf following the termination of the acquisition by IOI Corp Bhd in November 2008. Another aborted sale was that of Sunrise Bhd’s MK 20 in Mont’Kiara, Kuala Lumpur to Singapore’s Capita-Land. As prices of commercial buildings take a little tumble, so will rents.

The rental market practically screeched to a halt last year. Many of the tenancies secured last year? were the result of negotiations that took place the year before. This will be a better year, but it will be a competitive market, with tenants doing a lot of shopping around.

The Petronas Twin Towers are both nearly 100% occupied and this is spurring the authorities to consider building other iconic sites in Kuala Lumpur to put Malaysia on the world’s real-estate map and give the economy a jump-start.

Two possible sites are being considered – the vicinity of Stadium Merdeka and the Matrade Centre in Jalan Duta-Jalan Kuching.

Says Regroup’s Boyd: “I like the idea of iconic sites because they give identity to the country. While they instill some civic pride, they are hard to justify on commercial terms. The office market in Malaysia has traditionally been inexpensive compared with other countries in the region and we may never see the rentals enjoyed by Singapore. It is hard to make iconic buildings work financially. They are there for other reasons.”

By The Star (by Thean Lee Cheng)

2009 and beyond

I know I will never see another year like 2009. I doubt I want to. We entered the year feeling like schoolboys after a mass caning. At least seven major deals had been aborted including the sale of Menara Citibank, and with buyers in full flight, we were wondering when the pain would end.

First indications of resilience were seen when the top-end condominium market refused to crash. Come May and June, we were asking ourselves where all the fire sales were. Why hadn’t all those foreign speculators cashed in their chips and led the stampede for the door? The One KL condominium project near KLCC was completed mid year and most buyers clearly opted to hold on to their investments.

In the same period Eastern & Oriental Bhd launched the first tower of its St Mary Residences serviced apartments with unerring finesse and met with immediate success. Confidence returned and cashed-up developers began scouting for new sites.

The subsequent re-introduction of real property gains tax plus a huge pipeline of new projects will continue to hold the market in check. Buyers are going to be very selective and looking for value for money.

The luxury condo market may not be out of the woods but it now has its bright patches. For example, prime suburbs such as Bangsar, Damansara Heights and Bukit Tunku are subject to tight planning controls over new high-rise development and those that are approved may enjoy some premium value.

Office rentals peaked at the end of 2008 and have since softened moderately by about 15%. The market was at a standstill in the first half of 2009, with tenants in the sidelines, waiting for signs of stability in the global economy.

The Icon and G Tower neared completion, both excellent office buildings and each offering about 500,000 sq ft of space on Jalan Tun Razak, and we watched to see how they would fare. Recently, both have announced some lettings and I can only say that the six months running up to completion of any speculative office building is invariably the most stressful; one has to stay focused and have faith in the future.

In fact, the new supply of office space over the next three years is not excessive, and while rents may remain competitive in 2010, the medium-term outlook is good and as always, better property management will encourage better tenant loyalty.

Last year, GIC were fortunate to achieve their sale of Menara Stanchart at a reported RM950 per sq foot (psf) just before the crash. Other sellers were not so lucky and YNH Property Bhd’s massive office sale to Kuwaiti Finance House at a reported RM1,258 psf have been aborted.

Despite weakening rentals and slightly higher yield expectations, we see office capital values remaining steady and generally ranging between RM800 to RM1,100 psf in 2010.

It has been a period of consolidation in the retail sector and average occupancy rates of 42 selected malls in the Klang Valley dipped slightly to 92.3%, while rents were stable. Fortunately future supply is moderate, with only 4.28 million sq ft being added to the existing inventory of 40.7 million sq ft in the next three years.

We may see an extensive renovation at the 1 Utama shopping centre in 2010 and the major complexes will continue to go from strength to strength, supported by the country’s young demographics.

The end of 2009 has been highlighted by the surprise announcement of the re-sale of the Bok House site at a record RM2,200 psf.

The clear message is that the market will always continue to experience fluctuations, being either the normal seven to 10-year cycles resulting from development activity; or from major external impact such as we saw last year.

Events in Dubai have shown that there is no such thing as a straight line progression. In the medium term, economic and population growth will support a steady appreciation in values and bring its rewards.

In property, market knowledge, timing, and holding power are the keys to success.

·Chris Boyd is executive chairman of Regroup Associates Sdn Bhd property consultants.

By The Star (by Christopher Boyd)

MICE sector poser

The Malaysia International Furniture Fair has been held in multiple locations in recent years due to the lack of space.

MALAYSIA has some of the finest exhibition and convention centres in the region, but it needs to beef up its MICE (meeting, incentive, convention and exhibition) sector if it wants to garner a larger slice of the regional exhibition and convention market.

There seems to be two schools of thought on how to get this done. One side believes it can be achieved by making full use of the conventions that we already have. Others, however, believe there is a need for more convention space.

Association of Valuers, Property Managers, Estate Agents and Property Consultants in the Private Sector, Malaysia (PEPS) president James Wong believes there is already sufficient convention and exhibition space, especially within Kuala Lumpur.

“Even the existing ones, like the current Matrade (Malaysian External Trade Development Corp) centre, is under utilised,” he tells StarBizweek.

Among the more prominent exhibition venues in Kuala Lumpur are the KL Convention Centre (KLCC) (9,710 sq m), the Putra World Trade Centre (PWTC) (23,504 sq m) and the Matrade Centre in Jalan Duta (13,000 sq m).

Wong believes that the country’s convention centres are just under-promoted.

“The main challenge that we face is the lack of marketing. We do have good convention centres but we’re not doing enough to promote Malaysia as a MICE destination, and we’re losing out to countries like Singapore, Thailand and Hong Kong,” he says.

Despite Malaysia being known as a food haven, not enough is being done to promote it, Wong adds.

“We have cultural diversity and all the infrastructure, but we don’t see many food fairs or exhibitions. In Hong Kong, food fairs are very well promoted.”

Another exhibition centre that is not well marketed is the Putrajaya International Convention Centre (PICC). It boasts state-of-the-art design and facilities but is very under-utilised, says an industry observer.

“Unfortunately, the location could be better and it is more ideal for government events. In the first two years after it was built, there were no proper road signs and getting there was a nightmare!”

Recently, the International Trade and Industry Ministry (Miti) said Malaysia needed a large exhibition centre to boost its MICE sector.

Miti secretary-general Tan Sri Abdul Rahman Mamat was quoted in a news report last month as saying that by having the relevant facilities, Malaysia could promote not just its MICE sector, but the tourism industry as well.

The statement was in reference to the proposed new Matrade Centre that will be built at Jalan Duta by the Naza Group. Phase one of the project will comprise a 90,000-sq m expo centre on 13.1 acres, which is set to be the largest exhibition and convention centre in the country.

The construction of the new exhibition centre will bring the total exhibition space in Kuala Lumpur to more than 130,000 sq m.

Minister Datuk Mustapa Mohamed reportedly said the new centre would be ideal for hosting very large-scale exhibitions that existing centres in Malaysia could not accommodate, such as the Defence Services Asia Exhibition and Conference, Malaysia International Halal Showcase and International Trade Malaysia.

In a news report last month, Malaysian Association of Convention Exhibition Organisers and Suppliers (Maceos) president Jonathan Kan said he was supportive of the Government’s call to have more convention space.

In the report, he said Malaysia had only hosted 3,418 international events exhibitions and conventions in 2007, less than half of that organised in Singapore during the same period.

Kan said the total available exhibition space in Malaysia currently was about 46,214 sq m, which was about 37% of Singapore’s total exhibition space of 124 000 sq m.

The report claimed that Malaysia was ranked among the lowest in the region in comparison to Hong Kong’s 389,000 sq m, Bangkok’s 210,000 sq m and Dubai’s 108,538 sq m.


Dr Yeah Kim Leng agrees that the MICE sector is in a good position to be a growth industry.

RAM Holdings Bhd chief economist Dr Yeah Kim Leng agrees that the MICE sector is in a good position to be a growth industry, but feels that having more space is not necessarily the way to go.

“If the new Matrade Centre can create sustainable demand for niche (large-scale) exhibitions such as aerospace conventions, only then would it be viable.”

“Places like the PICC is under-utilised. We need to beef up promotions and encourage regional and international conventions if we want to make Malaysia a MICE hub for Asean and even Asia,” he says.

Malaysian International Furniture Fair Sdn Bhd (MIFF) senior manager Karen Goi, meanwhile, feels Malaysia lacks convention space. The company has been forced to hold its annual MIFF in multiple locations in recent years.

“There’s just not enough space. That’s why we’re organising the MIFF 2010 in three locations simultaneously, namely KLCC, PWTC and at the Matrade Centre.”

She says a typical furniture fair requires a gross floor space of at least 80,000 sq m. “Having it in just one location would make it very convenient for our exhibitors and cheaper to organise. Having it in three locations means triple the cost. Managing transportation for multiple venues is also difficult,” Goi adds.


Datuk Aishah Ahmad is quite satisfied with the convention space available.

Malaysian Automotive Association Datuk Aishah Ahmad says the association is quite satisfied with the convention space available based on its experience organising the Kuala Lumpur International Motor Show every few years.

“We often have it in PWTC. With multiple levels, it is enough for us. It’s ideal also because of its easy to access via public transport,” she says.

By The Star (by Eugene Mahalingam)

Maybank begins 2010 with new mortgage schemes

KUALA LUMPUR: Malayan Banking Bhd (Maybank) kicked off the new year by launching two mortgage packages – new MaxiHome and MaxiShop Fixed Rate – which offer a variety of three, five or 10-year fixed rates.

“These two exclusive packages are offered from Jan 1 to June 30, 2010,” head of consumer banking, senior executive vice-president, Lim Hong Tat said in a statement.

The MaxiHome package is aimed at customers seeking interest rates stability and sustainable cashflow during the initial first few years of property purchase, with less worry on base lending rates (BLR) fluctuation in the near future.

The package offered the best in town for fixed-rates home loans starting as low as BLR minus 1.8% for property under construction and completed properties, Lim said.

As for the MaxiShop, rates are as low as BLR minus 1.40% for those under construction and for completed properties.

Lim said the fixed rates allowed property purchasers the option to select a fixed-rate scheme which best suited their financial needs for a given period of time before the loan switched to variable rates pegged against the BLR, upon expiry of the fixed-rate tenure.

By Bernama

ECER aims to draw more investments

The East Coast Economic Region (ECER) will focus on bringing in more domestic and foreign investments in 2010 while increasing private sector participation within the region.

ECER Development Council chief executive Datuk Jebasingam Issace John said ECER has already attracted a total of RM26 billion in expressed and committed investments, from both local and foreign sources.

"There are several existing projects within the ECER Special Economic Zone (SEZ) that investors might find highly lucrative yet safe for investment such as Malaysia’s first fully integrated plastics and polymer park, the Kertih Polymer Park (KPP) which is now ready for occupancy within its 140-hectare land area," he said in a statement today.

Set up to promote a plug-and-play concept, Jebasingam said KPP will tap into the potential synergies from integration with the nearby Kertih Integrated Petrochemical Complex in Terengganu.
The park, which has drawn immediate commitments of RM565 million in investments, is expected to be fully operational in 2015.

Another area that ECER is focusing on is the Pekan Automotive Industrial Park, with planned upgrades in infrastructure and landscaping as well as the setting up of a central marketing centre in 2010.

"As a whole, the Pekan Automotive Industrial Park is expected to generate over RM4 billion in investments throughout its four stages of development and create a total of 10,580 jobs," Jebasingam said.

Meanwhile, efforts have been made to attract investors to participate in key viable projects outside the SEZ, which would act as suppliers of feedstock and to support the development of projects within SEZ.

This includes projects for the tourism and agriculture clusters.

For agriculture, the Muadzam Shah Cattle Research and Innovation Centre will be built in May 2010 to accommodate 1,300 breeders and bulls as a means to reduce dependency on imported cattle stock.

Meanwhile for tourism, ECER has designated some 106 hectares in Teluk Bidara, Dungun to be built with high-quality hotels, resorts and chalets.

To boost the city’s tourism pull, Kuala Terengganu city centre’s construction as an integrated waterfront heritage city will begin within the second half of 2010.

To enhance the region’s natural tourism resources, Gua Musang and Kuala Krai will be developed as an eco-tourism destination, forming a part of the Lanchang - Kuala Lipis adventure trail and Kuala Gandah Elephant Sanctuary in Pahang into a world-class elephant conservation and education facility.

By Bernama

Proposal to revive shoplots in three areas

There is still hope for salvaging what is left of Bukit Sentosa, Bukit Beruntung and Prima Beruntung to make it a second Petaling Jaya and provide a chance for the local council to collect about RM24mil in backdated assessments.

"The council does not spend any money. It is a win-win situation for the council, residents and shoplot owners"- TUKIMAN NAIL"

Hulu Selangor District Council (MDHS) president Tukiman Nail said there was a proposal by a company to revive about 5,000 shoplots in these three areas.

The company has proposed to bring in investors from countries, like China, to set up businesses in the area.

“It has agreed to repair the buildings, put up streetlights and arrange for the supply of water and electricity to these lots.

“This is a good idea,” he said, adding that there were not many companies willing to develop those areas.

‘’Many shoplot owners had lost money when they started their businesses in these three areas. It is a bane to the state,” Tukiman said at the MDHS full board meeting in Kuala Kubu Baru on Wednesday.

Tukiman said the council would approve the proposal, provided it was given the green light by the Commissioner of Buildings committee which is part of the council’s committee.

‘’The best part is that the council does not spend any money. It is a win-win situation for the council, residents and shoplot owners,” he added.

Councillor Kaevan Raghvan suggested the council study the proposal and look into the legal aspects.

Former councillor Mohd Ridzuan Idris, who is a consultant to ESPI Jaya Sdn Bhd, the company that submitted the proposal, was hopeful that the council would be able to collect the backdated assessment within the next five years.

Mohd Ridzuan said the council was owed RM36,472.457 in backdated assessment throughout Hulu Selangor for 2009. Of this, 63% or RM23,1776.385 was from Bukit Beruntung, Prima Beruntung and Bukit Sentosa.

‘’The council will have to increase this figure by 30% annually for the whole of Hulu Selangor,” he added.

Describing the situation as “very critical”, Mohd Ridzuan said the council should stop the “bleeding” and approve the proposal as it would benefit all parties.

“If the council approves the proposal, efforts to bring in the investors and restore the shoplots could begin by February.

On another issue, Tukiman said the existing landfill in Sungai Sabai, Kalumpang, was almost full and the council had identified another area in Kalumpung for a future dumpsite. There is another landfill area in Bukit Beruntung.

Councillors Santokh Singh, Kaevan and V. Perumal also debated on the state directive on a parking issue in Kuala Kubu Baru town, concerning whether a tyre shop and clinic should be charged parking fee as they prevented motorists from parking in front of their premises.

By The Star (by Stuart Michael) Posted on 1st Jan 2010

A good time to buy

I attended the wake of a distant family member who passed away earlier this year. As we sat in his car porch, drinking our mineral water and muttering platitudes, a family member stood up and declared, “good riddance to bad rubbish” and then sat down again, looking satisfied. Much as I admire and enjoy eccentric behaviour and will always support freedom of speech, I thought this remark was a little ill-timed, denying the target his right to initiate the customary hundred million ringgit suit for defamation.

I shall treat the passing year with appropriate reverence and respect. Suffice to say, it marked the 50th anniversary of the kidney transplant. Now, can we move on please?

But before we do, let me spotlight a couple of non-events that didn’t seem to make the news. Firstly, have you noticed you are no longer being beseeched to buy land in England? And that owning a plot in Canada is no longer your passport to the good life? There are reasons for this. In March, Walton International Property Group, a company which enjoyed prominence here for a while, was raided by Bank Negara following suspected breaches of the Exchange Control Act.

Bank Negara warned the public to be cautious of this type of land banking scheme. Then in October the Companies Commission carried out three simultaneous raids on UK Land International (M) Sdn Bhd, Profitable Plots Sdn Bhd and Edgeworth Properties (M) Sdn Bhd for alleged breaches of the Companies Act as well as the commission’s policy guidelines.

It transpires that one of the companies is already facing winding up proceedings in the United Kingdom. According to the British Financial Services Authority, which initiated these winding up proceedings, UKLI Ltd had over 4,500 investors but none of the land sold had ever received planning permission.

The other curious non-event was that the Kuala Lumpur 2020 City Plan was not gazetted. If you recall, this was the plan drafted in 2008 which reviewed permitted land use and densities. We are told that gazettal will take place in 2010 but there is still time for appeal. This may be your last chance, although only history will record whether this has been a quixotic attempt at reform or whether the task of master planning a city as dynamic as KL is really feasible.

And so here we are, arguably entering a new decade or possibly nearing the end of the old one, depending on whether you start counting from zero or one. (A book that has made a lasting impression on me is, How to Lie with Statistics. Did you know that the average human being has one breast and one testicle?)

Now that 2009 is over, we can probably lower the storm flags over the property market, although I wouldn’t fold them up and stow them away just yet.

Retail and office space looks well moderated but there is still a hefty supply of top-end condos in the pipeline. And we may not have seen the worst of the non-performing loans.

Developers’ friend

Looking ahead, the Government may face difficulty controlling inflation, which is dubbed ‘the developers’ friend’ and which generally pushes values upwards. My long-range forecast is for our next boom to come around in 2013, and there has probably never been a better time to buy, than now.

This is the last in my series, but before I wish you a Happy New Year and Goodbye, I want to share with you one abiding experience that has made this festive season a truly cheerful one for me.

Coming out of Subway last week after a quick lunch, I nearly tripped over a young man sitting on the kerb, apparently gesticulating wildly into thin air. On closer inspection I saw he had his handphone propped between his knees. He had the camera on. Deaf and dumb, he was ‘talking’ to his friend. God bless him, and hooray for technology. There is hope for humanity yet.

Chris Boyd is executive chairman of Regroup Associates Sdn Bhd, property consultants. We welcome your feedback on this article. Please write to starbiz@thestar.com.my

By The Star (by CHRISTOPHER BOYD)

Ho Hup sees RM400m GDV for Jalil Green City

HO Hup Construction Company Bhd, the country's oldest construction company, expects a gross development value (GDV) of RM400 million for phase one of the Jalil Green City project.

The mega integrated lifestyle development project comprising eight phases of development will commence construction next year.

The first phase, consisting of eight-storey offices, five-storey offices and signature offices is expected to be completed in three years.

"We expect to finish all eight phases of development over 24 hectares of land between eight and ten years.
"Total GDV for the entire project will be RM1.6 billion," said Ho Hup Managing Director Lim Ching Choy to reporters after the company's extraordinary general meeting (EGM) here today.

The remaining seven phases will consist of unique suites, shopping mall, "class A" office lots and residential projects.

Lim said the company was now in the final phase of securing a RM120 million bank loan for the project.

"Next year will be bright for us after sustaining several years of losses. We expect a huge turnover from this project and from one or two other deals which we hope to secure. We are optimistic of securing medium-sized government projects which we tender for recently," he said.

Lim was confident the projects would return Ho Hup back to its glorious days before the financial meltdown.

"Our market share currently is lower than a sub-contractor but we will hopefully increase it by the end of next year to a significant level," he added.

Meanwhile, Ho Hup expects its property division to contribute 70 per cent for the group's annual turnover next year.

"We have no specific contribution percentage for now as it is not significant like it was before.

"The property division, before the company's financial meltdown, was contributing 80 per cent annually to group turnover," he said.

Ho Hup is driven by its three arms namely its property, construction and trading divisions.

Earlier, at the EGM, shareholders approved the resolution to dispose two parcels of freehold vacant land in Hulu Langat and Kuala Lumpur.

When asked about the internal tussle between the management and major shareholders, Lim said the company was currently focusing on a new direction for the company next year.

The tussle was made public in the media by major shareholder Low Tuck Choy, who alleged the Ho Hup management sold two parcels of lands in Balakong and Bukit Jalil below market value.

"The 2.2 hectare land in Balakong for instance, has a lot of disadvantages. There is no proper road or pathway to the land. Besides there is a river and drain reserve which the new owner will have to give up to the government, as required by the law, if he wants to develop the land.

"I believe the RM30 per square feet price tag is not low after considering all these obstacles that the buyer will have to face," Lim reiterated.

He said the company was open to further negotiations and welcomed the support and response of shareholders at each annual general meeting or EGM.

Low, however, was not present at the EGM.

By Bernama

CIMB to sell 65 properties to EPF for RM302m

The group is expected to make a gain of RM171 million from the sale of properties that house its banking operations.

CIMB Group is selling up to 65 properties that house its banking operations to the Employees Provident Fund (EPF) for RM302.4 million in a related-party sale and leaseback deal.

The group, in an announcement yesterday, said the sale will raise cash for CIMB Bank's working capital, reduce its risk-weighted assets by the book value of the properties and reduce its property risks.

The group is expected to make a gain of RM171 million from the sale.

The properties are currently used to house CIMB Group's banking business operations such as branches and offices.
The sale and leaseback deal will be not be its first.

It sold and leased back its current head office, Bangunan CIMB, and Menara Bumiputra-Commerce.

In late 2007, CIMB group managing director and chief executive officer Datuk Seri Nazir Razak said it was mulling over a third sale and leaseback exercise on some buildings as part of its plan to manage capital more efficiently.

The EPF is a major shareholder in CIMB Group, while Nazir is a member of the pension fund's investment panel. He abstained from voting on the deal.

By Business Times

CIMB selling properties for RM302mil

KUALA LUMPUR: CIMB Group Holdings Bhd said yesterday that it is disposing 65 properties to the Employees Provident Fund (EPF) for RM302.5mil as it is not in the business of owning properties.

The group was expected to gain up to RM171mil from the disposal, it said in a filing with Bursa Malaysia.

The rationale of the disposal was to reduce the group’s exposure to property risks as well as to raise money for working capital purposes of CIMB Bank, the group said.

The properties are presently used to house CIMB Group’s banking business operations such as banking branches and banking offices.

The disposal is expected to be completed in the first quarter of 2010, it said.

It added that CIMB Bank had entered into a lease agreement with EPF for the properties concerned.

By Bernama

Hunza Properties buys land for RM82m

HUNZA Properties Bhd has bought four plots of freehold land in Penang for RM82 million.

In a statement to Bursa Malaysia, it said the rationale behind the proposed acquisition is because the group is principally involved in property development and investment, which are currently focused in Penang and Kuala Lumpur.

The acquisition will enable the group to increase its landbank for future development and/or investment, at the same time continue its expansion plans in Penang.

By Business Times

Mydin to open 4th outlet in Malacca

Due to encouraging response from the public, Mydin Mohamed Holdings Bhd will build a RM67 million wholesale hypermarket next March in Bandar Jasin Bistari, its fourth outlet in Malacca.

Its managing director Datuk Ameer Ali Mydin said land acquisition for the six-hectare factory site will cost RM7 million and construction another RM60 million.

He said the continued confidence in the people's purchasing power prompted Mydin Mohamed Holdings to invest in another hypermarket in the state.

"The state government is offering various incentives to woo investors to turn Malacca into a shoppers' paradise for tourists," he said, adding that construction of the factory will begin in March 2010.
"The hypermarket will be ready for commercial operations in May 2011 and provide business opportunities for local retailers," he told reporters in Malacca yesterday after a signing ceremony for the purchase of the factory land from the Melaka Customary Lands Development Corporation (Pertam).

Malacca Chief Minister Datuk Seri Mohd Ali Rustam witnessed the signing of the agreement between Ameer, who signed on behalf of his company, while Pertam was represented by its deputy chairman Datuk As'ari Ibrahim.

Ameer said Mydin's biggest hypermarket is operating at the Melaka International Trade Centre (MITC) and generated a monthly turnover of RM18 million while another two outlets operated at Melaka Sentral.

By Bernama

Property developers to gain in 2010

PROPERTY developers will continue to emerge as key winners in 2010, driven by rising demand and improving economic outlook, according to an analyst at MIDF Research.

Moving into 2010, he said players would continue to ride on the sector's buoyant recovery based on the improving number of property sales coupled with declining number of overhang units since the first quarter of 2009, the analyst, who declined to be named told Bernama recently.

For 2009, it was an unanticipated recovery story as the sector had outperformed expectations in becoming one of the leading segments in the stock market.

Share price of property companies, which is measured by the KL Property Index, in fact outpaced the benchmark FBM KLCI.
However, the analyst pegged a "Neutral" outlook for the property sector in 2010.

"Despite encouraging sales demand and improving economic sentiment, the fear of demand sustainability, upon the withdrawal of cheap credit, absence of attractive promotions and favourable regulations may take its toll on the property sector," he said.

However, the growth driver in 2010 will be, among others, the favourable regulations, continuous governmental support, a thriving property market taking its cue from an improved economy and the ability to attract foreign direct investment flow.

"Sales demand for residential properties are expected to remain buoyant as investors continue to deem it as one of the more liquid hedging asset. Speculators are also taking advantage of the current market sentiment to lock-in on gains," he said.

A survey across key property players revealed that none was slowing down their pace of project development.

Many were, in fact, taking advantage of the current discounted valuations to replenish land banks and were not holding back new launches.

The analyst said key players have signaled that take-up rates of residential properties have remained strong between 80 per cent and 90 per cent in the last quarter.

"Hence, we are confident residential property sales will remain buoyant, at least within the first half of 2010. We are estimating at least 25,000 new units to be launched over the next quarter," he said.

On the retail/shopping complex and office front, he expected continued oversupply of units, notably in the Klang Valley, as many have been under construction over the past two to three years.

Many corporations and businesses are also holding back relocation plans until the financial crisis is over.

Meanwhile, issues that may dampen the sector's recovery include the re-introduction of the Real Property Gains Tax (RPGT), possible pullback in sales demand due to withdrawal of cheap credit, unanticipated rise in raw material prices thus raising average selling prices and delaying launches and approvals.

"We do not expect any immediate impact from the reintroduction of the RPGT and it was mainly to control the secondary sales market. On the flipside, it may discourage foreign investments in commercial properties," he said.

He said the tax was introduced too soon as the economy was still on the verge of recovery but understood the need for it to curb another asset bubble.

On the Real Estate Investment Trusts (REITs), the analyst does not expect it to be a star performer in 2010 but expects some interest in this segment.

He said the average rental yield for offices and commercial properties was on a downtrend in 2009, with rental for offices falling 1.9 per cent, year-on-year, and 1.35 per cent, year-to-date, within the Klang Valley.

However, the recovery in the property market coupled with an exemption from RPGT and stamp duty will see rising interest in REITs which currently yield an average return of between eight and nine per cent in Malaysia.

On the status of Malaysia's property market, the analyst said he did not expect any property bubble in the immediate-term.

"Appreciation of property prices have been modest so far as demand recovered slowly as investors' confidence returns," he added.

Prices of properties, nationwide, declined 9.8 per cent, year-to-date, due to the economic crisis, but gained 1.40 per cent, year-on-year, due to renewed interest emerging in the second quarter of 2009.

"Nevertheless, assuming the presence of cheap financing, attractive promotions and favorable regulations continue into 2010, coupled with new launches and delivery in 2010, property prices may face an upsurge," he said.

And, despite the Dubai's debt crisis, he said Malaysia would still be able to attract Middle Eastern investors who still reaped positive yields from investing in the country's property market.

The main challenges in the property market will be demand fundamentals, whether it can be sustained, and from another point of view, what else can be offered by both property players and financial institutions to support the growing demand.

"One would be cheap cost of fund (credit). Assuming overnight policy rates are raised back to pre-2006 days of 3.50 per cent, can demand be sustained? Secondly, assuming a second dip does occur, can the property segment take it in its stride?" he said.

The analyst said residential properties will continue to be favorites amongst investors who still demanded mid-to-high-end properties.

"We noted in the second quarter that properties priced between RM250,000 and RM500,000 and between RM500,000 and RM1 million were favorites and registered sustained growth," he said.

Residential properties have historically proven to be good hedge instruments with attractive capital appreciation, while commercial and office properties may see a dip in demand, against a backdrop of new launches, except for those Grade-A offices located in sub-urban areas.

Demand for properties around Kuala Lumpur City Centre is recovering as prices within the vicinity improved in the third quarter with stable rental yields.

As for industrial properties, he said the segment would move in line with the nation's economy.

The analyst was also of the opinion that the property market needed a boost in the form of incentives, that included tax reduction for sub-urban developments, cheap credit, continuous efforts to draw foreign direct investments and for local small players to have joint-ventures opportunities with state governments.

By Bernama

YNH optimistic of projects

PROPERTY developer YNH Holdings Bhd plans to launch two luxury projects, worth a combined RM1.6 billion, in Kuala Lumpur next year.

Its head of corporate services, Daniel Chan, said the company was optimistic of good response, given the product offering and location.

The Ipoh-based developer targets to launch Fraser Residence in Jalan Sultan Ismail and Kiara 163 in Mont'Kiara in the first quarter and second half respectively.

Fraser Residence willl comprise 450 condominium units. Kiara 163, located next to Plaza Mont'Kiara, will feature 580 condominium units, a four-storey mall and a 28-storey office tower.
"We are confident of the two launches as the location of our properties is very strategic. At the end of the day, it's all about location, location and location," Chan told Business Times.

The projects will keep YNH busy for the next five to eight years.

Other projects on hand include its bread-and-butter 400ha Sri Manjung township in Perak, which is expected to last the company for 20 years.

"We will launch new phases next year at the township to keep up with demand, thanks to new developments taking place," Chan said.

He cited the iron ore plant in Teluk Rubiah proposed by Brazil's Vale International SA, the world's second largest diversified metals and mining company.

Chan also expects sales to improve because of developments at Kencana Petroleum Bhd's fabrication yard in Lumut and the Lumut Naval Base.

"We will focus on a few developments and not overexpose ourselves. We have a low gearing of 0.3 time and want to keep it at that.

"We have cash of RM100 million coming in soon from Ceriaan Kiara and Fraser Place KL and will use some of it to fund our new projects."

Chan is confident of YNH posting profits in its fiscal year ending December 31 2009.

He said that while earnings may dip slightly this year, 2010 net profit and revenue are expected to surpass 2008 results owing to the bigger developments coming up as well as sales from existing projects.

Last year, YNH made RM86.8 million net profit on revenue of RM350 million.

By Business Times (by Sharen Kaur)

Ho Hup appoints valuer for sale of land parcels

PETALING JAYA: Ho Hup Construction Co Bhd said it had instructed an independent firm to conduct a valuation of the parcels of land it planned to dispose.

In a filing with Bursa Malaysia, the company said the market value for the first plot of land in Balakong was valued at RM30 per sq ft while the parcel of land at Bukit Jalil was valued at RM50 per sq ft.

“With the disposal of the (two pieces of ) land, Ho Hup is expected to realise an estimated gain of RM9mil after deducting estimated expenses in relation to the proposed disposals,” it said, adding that this would help the company pay a portion of its existing bank borrowings and for working capital purposes.

It was reported that there was a growing rift between the company’s management and a major shareholder over the valuation of the two plots of land.

On the platter are two resolutions to be put to the vote at the group’s EGM on Dec 31 for the disposals of the two parcels of land.

The first resolution at the EGM was for the disposal of a piece of land in Balakong for RM7.2mil while the second resolution is for the sale of a land in Bukit Jalil to raise RM5.7mil.

By The Star

Mydin to build 4th hypermart in Melaka

MYDIN Mohamed Holdings Bhd will build a RM67 million wholesale hypermarket next March in Bandar Jasin Bistari, its fourth outlet in Melaka.

Its Managing Director, Datuk Ameer Ali Mydin, said land acquisition for the six hectare factory site would cost RM7 million and construction another RM60 million.

He said the continued confidence in the peoples' purchasing power prompted Mydin Mohamed Holdings to invest in another hypermarket in the state.

"The state government is offering various incentives to lure investors to turn Melaka into a shoppers paradise for tourists," he said, adding that construction of the factory would begin in March 2010.
"The hypermarket will be ready for commercial operations in May 2011 and provide business opportunities for local retailers," he told reporters in Melaka today after a signing ceremony for the purchase of the factory land from the Melaka Customary Lands Development Corporation (Pertam).

Melaka Chief Minister Datuk Seri Mohd Ali Rustam witnessed the signing of the agreement between Ameer, who signed on behalf of his company, while Pertam was represented by its Deputy Chairman Datuk As'ari Ibrahim.

Ameer said Mydin's biggest hypermarket was operating at the Melaka International Trade Centre (MITC) and generated a monthly turnover of RM18 million while another two outlets operated at Melaka Sentral.

The Bandar Jasin Bistari hypermaket is expected to cater for consumers as far as Muar and Tangkak and will be Mydin's 48th outlet in the country providing employment for about 280 people.

By Bernama

RM1.7bil housing project taking shape

Sales promotion of at the Senibong Cove office in Permas Jaya during a function held there on Dec 21. - The Star

Iskandar Waterfront teams up with Aussie group to develop waterfront residences in Plentong in two years

JOHOR BARU: Senibong Cove, a waterfront housing project here with an estimated gross development value (GDV) of RM1.7bil, is scheduled to be completed in two years.

The development is a joint venture between Iskandar Waterfront Development Sdn Bhd and Australia’s Walker Group.

“Walker Group is one of the leading developers in Australia and the whole residency is similar to the housing project in Hope Island, Australia,” said Quay Chew Keong, the project’s director.

“The whole residency will have four different parks and all the houses will have gardens or a view of the water.

“We have not started officially advertising for buyers as yet but 90 (people) have already registered for the houses,” he added.

The project, located in Mukim Plentong, features cluster houses, semi-detached houses, bungalows, apartments, luxurious apartments and terrace houses, with prices ranging from RM290,000 to RM1.8mil each.

“Other than that, residents would also be able to enjoy the facilities of a marina with 70 to 100 berths,” Quay said.

He added that the project was located directly opposite the Sembawang Shipyard.

Johor Mentri Besar Datuk Abdul Ghani Othman will formally launch the project early next year.

By The Star (by DESIREE TRESA GASPER)

Malaysian firm participates in building world's tallest building

A labourer works at Burj Dubai in Dubai. — Reuters

DUBAI: The soon-to-be-opened Burj Dubai is entering the record book as the world’s tallest building and sharing this honour, is Malaysian structural steel construction firm, Eversendai Corp.

According to group managing director Datuk A.K. Nathan, the final 260m of the soaring tower was an all-steel structure, and Eversendai had the privilege of putting it up successfully.

“In fact, we’re the first company in the world to have worked above 700m. No one in the world has worked above this height,” he told Bernama in Dubai.

Previous reports have mentioned that Burj Dubai is over 800m tall with more than 160 floors.

Its developer Emaar Properties is keeping mum about the actual height of the gleaming tower, amid statements that its spire can be seen 95km away.

Burj Dubai is to be inaugurated on Jan 4, 2010 by United Arab Emirates (UAE) vice-president and prime minister, and ruler of Dubai, Sheikh Mohammed Bin Rashid Al Maktoum.

Nathan said Eversendai also carried out structural steelworks on other parts of Burj Dubai.

Alluding to the last 260m of the super-tall building, Nathan said it was a highly complex structure needing precise design, fabrication and contruction processes. “And we’ve done everything to the full satisfaction of our client without any kind of accident,” he said.

He also said Eversendai had good working relations with the tower’s main contractor, Samsung Corp of South Korea.

Tracing Eversendai’s history in the UAE, he said: “I first came here in the mid-90s and our first job was the Burj Al Arab hotel, off the coast of Dubai.”

Then came a slew of other projects in the UAE, Qatar and other places worth billions of ringgit for Eversendai. Qatar is a particularly bright spot for Eversendai, which is currently involved in projects such as the new Doha international airport and the Dubai Towers-Doha.

Nathan reckoned that it had not been easy for Eversendai to be where it was now.

“A company that wants to venture overseas must have developed its own capability as well as possessed a measure of financial strength.

“If you don’t have these, it’s very difficult to penetrate thte overseas markets. I mean, asking support from the government is one thing. But the government also has its limitations,” he observed.

By Bernama

Lii Hen to buy land

LII Hen Industries Bhd’s subsidiary, plans to buy three plots of land with buildings in Muar, Johor, for RM2.2 million.

Kejora Juara Sdn Bhd, the group’s property investment arm, has entered into an agreement with Paragon Progress Sdn Bhd, to acquire the properties to house a majority of the group’s foreign workers.

The properties, which are located about 500 metres away from the group’s major plants, are expected to offer more easy management.

The group will fund the acquisition through internally generated funds.

By Business Times

Crest Builder wins RM175.5mil job

PETALING JAYA: Crest Builder Holdings Bhd has been awarded a contract valued at RM175.5mil by SP Setia Bhd for the construction of “superstructure” works of two 40-storey serviced apartments along Jalan Tun Razak and Jalan Raja Muda Abdul Aziz in Kuala Lumpur.

The company said in a filing with Bursa Malaysia yesterday that the project was expected to be completed in 24 months from date of site possession on Jan 2, 2010.

By The Star

KFH signs US$242m real estate deal in Chicago

KUWAIT: Kuwait Finance House (KFH), the country’s biggest Islamic lender, said it signed a US$242 million (US$1 = RM3.42) real estate deal in Chicago.

KFH owns 95 per cent of the project, the remaining 5 per cent is owned by Prism Co.

“KFH will focus on income producing assets with attractive yields and guaranteed occupancy levels,” it said.

In August, the lender said it was tying up with US apartment building owner UDR Inc to buy high income property in the US.
The joint venture seeks to acquire investments of up to US$450 million in major cities in the US.

By Reuters

RM6m refurbishment, rebranding for Mint Hotel

Property tycoon Tan Sri Lee Kim Yew, the owner of Mint Hotel, is now drafting a business plan to turn the hotel around

The three-star Mint Hotel along the Kuala Lumpur-Seremban highway will undergo a RM6 million refurbishment and rebranding programme and re-open by the first half of next year.

Property tycoon Tan Sri Lee Kim Yew, the owner of Mint Hotel, said he is now drafting a business plan to turn the hotel around, which had ceased operations since February 2005.

This follows the conclusion of Lee's acquisition of Mint Hotel from Ambank (M) Bhd for RM45 million, which Lee said was not voluntary.

A sales and purchase agreement was signed with the liquidator, Ernst & Young, in June this year, via his privately-held firm Lambang Raya Sdn Bhd.
"The hotel is not worth that much now. I am a victim. If i don't buy it, the bank will sue me. I will end up in a legal suit. I am caught because of the undertaking I had with the bank a few years ago," Lee, who is also the founder and executive chairman of Country Heights Holdings Bhd, told Business Times.

Property valuers have estimated Mint Hotel to be worth some RM23 million.

Ambank declined to comment.

The issue started when Jennico Associates Sdn Bhd, which is 50 per cent owned by Lee through Lambang Raya, was liquidated by a creditor in January 2000.

At that point, Jennico had already defaulted on a term loan of RM47 million granted by AmFinance Bhd in 1995, under the stewardship of Datuk Major (R) Zulkifli Abdul Mokti and KifliMokti Sdn Bhd, who owns the balance 50 per cent of the company.

Mint Hotel was then auctioned by Ernst & Young in 2005 and this attracted many bidders, including Lee, Lotus Family Group and Majestic Hotel.

They were keen to buy the 413-room hotel as it overlooks the Selangor Turf Club race course and is close to the Mines Exhibition Centre, Mines Wonderland, the Mines shopping mall and a golf course.

Business Times reported in August 2006 that Lotus won the bid to buy the hotel.

But a tussle broke as Lee claimed he was the rightful owner of the property.

According to Lee, he had submitted a bid for RM55 million for the hotel in October 2005 after being advised by AmBank, and a 5 per cent, or RM2.75 million, deposit was made to Ernst & Young.

Lee said his bid was based on a letter of undertaking he signed with Ambank in October 1995 stating that he will buy the hotel for RM55 million in the event of default of a loan taken by Jennico.

By Business Times (by Sharen Kaur)

Mega success in property deals

SEVERAL years ago, real estate agents and practitioners attended the Malaysian Annual Real Estate Convention primarily to fulfil their statutory obligation in obtaining 10 Continuous Professional Development (CPD) points - required by the Board of Valuers, Appraisers & Estate Agents - to renew their certificate of practice annually.

In the last few years, this has changed somewhat. The quality of such conventions, now known by its catchy acronym MAREC, has improved. Practitioners now no longer look at the convention simply as an avenue for them to obtain their necessary points. Instead, MAREC has now built a reputation as a platform for estate agents to learn, expand their mind as well as meet and network among their peers, all in an environment of friendship and comradeship.

Recently, MAREC which is organised by the Malaysian Institute of Estate Agents (MIEA) has taken another turn for the better, with more focus on training programmes for negotiators. MIEA recognises the importance of negotiators in an estate agency and the need for them to be continuously trained.

As such, MAREC 08 and MAREC 09 were remodelled to encompass entire sessions centred on negotiators. Parallel training sessions were organised for negotiators and have proven popular with negotiators, with larger numbers of them attending each year.

MAREC 10 is no different. An entire day has been set aside for negotiators. Topics have been chosen with great care, to ensure that they meet with the highest standards possible. MIEA has sought views and opinions from negotiators themselves to help formulate relevant topics and points of discussion.

Big deal
Among the topics at MAREC 10 include, “Road map to greater success in the profession.” This topic will guide negotiators through their journey to become registered estate agents. It will deal with professional examinations, required working experience, keeping of a work diary, preparing project papers and finally, attending and successfully passing the oral interview.

On hand to guide negotiators will be Kelvin Yip, who has over 20 years of experience in the real estate industry. Kelvin was in the Council of Management of MIEs for many years, having served in various capacities, including that of treasurer. He also served as a member of the Board of Valuers, Appraisers & Estate Agents and was the examiner for estate agents while in the board. Kelvin currently runs his own estate agency, Property Mall.

Meanwhile, estate agents can also look forward to topics like “Big deals count.” Every estate agent knows the never-ending battle within themselves, “Do I do many small deals in a year or do I focus on one or two big deals?” While there isn’t a correct answer to this question, it is common knowledge that some semblance of balance must be achieved to gain financial success. This session will deal primarily with handling big deals and how they will affect the estate agency. It will attempt to show practitioners that while doing the small “bread & butter” deals are important, true “mega success” can only come if big deals are concluded.

The presenter of this topic is Previndran Singhe, chief executive officer of Zerin Properties. Previndran graduated with a Bachelor of Surveying specialising in property management and valuation from UTM. He has worked in the hospitality industry in various capacities from operations analyst to chief officer marketing. He has more than 15 years experience in the property industry and was the winner of the “Real Estate Agent of The Year” award from MIEA this year.

“Size does not matter” is another topic that would appeal to participants. For a long time, the image of financial success has been equated to size. To a large extent, it has been proven true, as businesses continue to focus on expanding and growing bigger. But what about the practitioner who does not want to grow large, but yet seeks to do meaningful deals and get rich in the process? This session will attempt to dispel the myth that only large firms get all the big deals. It will give you pointers and help you create winning strategies, while remaining a small boutique agency.

Award-winning agency owner Govin Balaguru will talk about the pros and cons of big and small agencies. Govin started his career in engineering and ventured into real estate in 1982, setting up his own agency GDS Properties in 1992. His company was awarded “Commercial Agency of The Year” by MIEA this year.


MAREC 10 is scheduled for Jan 23-24 at the Putra World Trade Centre in Kuala Lumpur. On Jan 22, there will be a welcome dinner for delegates, VIPs and speakers. Participants will be able to network with fellow practitioners as well as with the speakers attending the dinner.

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

- For details, contact MIEA. Tel: 03-79602577 / Fax: 03- 79603757 / E-mail: secretariat@ miea.com.my / Website: www.miea. com.my

By The Star

YNH may revise tower project

PROPERTY developer YNH Holdings Bhd may revise the proposal to build a 45-storey Grade A office building in Jalan Sultan Ismail, Kuala Lumpur, after Kuwait Finance House (M) Bhd (KFHMB) aborted plans to buy part of the property.

The proposed YNH Tower was to have featured two wings on a luxury three-level retail podium. The development would take up 1.2ha next to the Shangri-La Hotel.

Changes to the original plan may be made after KFHMB decided against buying one of the wings for RM926 million.

YNH's head of corporate services, Daniel Chan, said it has received more than five offers from investors in Malaysia, Europe, Singapore and Hong Kong since the KFHMB deal was aborted. They include property and pension funds, private equity and real estate investment trusts, which want to buy the whole block.

"If they offer us a good price, we will sell them the whole block. Otherwise, we are in no hurry to sell. We aim to sell the first wing for more than RM926 million, and the second wing for around RM1.2 billion," Chan told Business Times.

By Business Times (by Sharen Kaur)

Dubai Properties axes top executives

DUBAI: Dubai Properties Group, owned by the ruler of Dubai’s holding company, replaced several executives including its chief financial officer yesterday and pledged better corporate governance to improve operations.

Changes at the property firm – a unit of Dubai Holding, the private company of Dubai’s ruler – included new chiefs of financial affairs, marketing, legal affairs, operations and property development, it said in a statement.

A planned merger between three of Dubai Holding’s property firms – Dubai Properties, Sama Dubai and Tatweer – and Emaar Properties was called off on Dec 9, adding to uncertainty about the debts of Dubai state-linked firms.

Flagship conglomerate Dubai World, faced with a US$26bil debt pile, rocked global markets on Nov 25 after it indicated a need to restructure.

Dubai Holding has about US$1.9bil of debt maturing in the first half of next year.

Dubai Properties said yesterday it would set an advanced corporate government framework “to ensure efficiency”.

By Reuters

KFH, not KFHMB, pulled out of Icon deal

KUWAIT Finance House (Malaysia) Bhd (KFHMB) has clarified that it is not a party to an aborted deal to buy a building in Kuala Lumpur.

Rather, it was Prompt Symphony Sdn Bhd (PSSB), a special purpose vehicle created by Kuwait Finance House KSC and a subsidiary of Autron Corp Ltd, that pulled out of a deal to buy The Icon building from Mah Sing Group Bhd for RM237 million.

KFH is the parent company of KFHMB. KFH would take up 80 per cent of PSSB while Autron would subscribe for the rest of the shares, according to Mah Sing's initial announcement on the deal in 2007.

"As far as KFHMB is concerned, it maintains a positive outlook in conducting business in the country and continues to seek potential investment opportunities," KFHMB said in a statement released last week.

By Business Times

KFHMB refutes new report’s allegations

KUALA LUMPUR: Kuwait Finance House (M) Bhd (KFHMB) has refuted an article titled Kuwait Finance House aborts deal to buy The Icon published in a local newspaper (not The Star) on Dec 25 and a related announcement made by Mah Sing Group Bhd on Dec 24.

In a statement, KFHMB clarified that it was not a contractual party to the sale and purchase transaction of the East Wing of the Icon property. The Icon is an upscale commercial development slated to become a 20-storey Grade A office building in Jalan Tun Razak.

Kuwait Finance said it maintained a positive outlook in conducting business in the country and continued to seek potential investment opportunities in line with the Government’s objective of making Malaysia an international Islamic financial Centre.

By Bernama

BSLI to buy land, factory for RM4.8mil

PETALING JAYA: BSL Corp Bhd’s wholly-owned unit Ban Seng Lee Industries (BSLI) has signed an agreement to sell a piece of freehold land in Gombak measuring 31,501 sq ft and a single-storey detached factory on it to MyDecor Marketing Sdn Bhd for RM4.8mil.

The gross proceeds would be used to repay bank borrowings (RM3mil), for working capital (RM1.7mil) and disbursements (RM100,000), BSL said in a filing with Bursa Malaysia.

BSLI’s operation will be transfered to a newly acquired freehold industrial land in Rawang.

By The Star

Crest Builder awarded RM175.5m contract

CREST Builder Holdings Bhd has been awarded a RM175.50 million contract by Exceljade Sdn Bhd, for the superstructure works on two towers of a 40-storey serviced apartment in Kuala Lumpur.

The contract was awarded to its a wholly-owned subsidiary, Crest Builder Sdn Bhd, the company informed Bursa Malaysia today.

The contract period is 24 months from the date of site possession which has been set out for Jan 2, 2010. The contract is expected to be completed by Jan 1, 2012.

Crest Builder said the contract will not have any effect on its issued and paid-up share capital or the substantial shareholder's shareholdings.
The contract, however, is expected to contribute positively to the earnings of the group for the financial years ending Dec 31, 2010 and onwards.

By Bernama