Sentosa resort won't affect Malaysia tourism

The opening of the Resorts World Sentosa, Singapore's first integrated resort, will not affect tourist arrivals in Malaysia.

"We will grow and will not be cannibalised because the pie will grow. More visitors will come especially if the economy recovers.

"So, the important thing is to make it a more complete experience," Genting Group Chairman Tan Sri Lim Kok Thay told reporters after the launch of the group's 45th anniversary logo in Kuala Lumpur today.

Genting Singapore PLC, a subsidiary of Genting Bhd, will open four hotels tomorrow under the first phase of the US$4.4 billion casino-resort in Singapore.
The Festive Hotel, Hard Rock Hotel Singapore, Hotel Michael and Crockford Tower will offer a total of 1,350 rooms and 10 restaurants.

They are expected to enjoy an occupancy rate of above 80 per cent.

Meanwhile, Singapore's first legal casino and Universal Studios theme park will open to the public as soon as the group obtains licences from the Singapore government.

"It(the resorts) is ready to open and we are now waiting for the licences (casino and theme park) to be issued. As soon as it issued, we will open," Lim said.

The Singapore casino is viewed as the group's key earnings drivers in the future.

"By end of next week, Universal Studios Singapore will open and when we officially launch Resorts World Sentosa later this year, it will be another significant and historical milestone achievement for the group," Lim said.

Under the second phase of the Resorts World Sentosa, Lim said another two projects, the Equarius Hotel and Spa Villas, would be completed by mid-2011.

He said Genting's involvement in a mixed development within Iskandar Malaysia comprised theme parks, hotels and premium outlets which would serve as a gateway for local visitors to Singapore and vice-versa.

The group teamed up with New York-listed Simon Property Group to venture into upscale outlet shopping in Iskandar Malaysia under the Chelsea Premium Outlet Centres concept.

Genting Plantations Bhd's unit, Azzon Ltd, signed a joint venture agreement last year with Simon''s Chelsea Malaysia LLC to establish the centres.

Under the partnership, Genting Plantations and Simon will form a 50:50 joint-venture called Genting Chelsea Sdn Bhd to invest and operate Premium Outlet Centres in Malaysia.

The Johor Premium Outlets, will be the first project to be built in Kulai, Johor, and is set to become the iconic flagship outlet centre in the Southeast Asian retail market.

Expected to open in 2011, the centre aims to synergise with Genting's existing property operations and the group's leisure and hospitality footprint in the region.

On Genting's Resorts World, the crown jewel within the group, Lim said the group expected its customer base to increase to 20 million visitors this year from last year's 19.5 million.

Resorts World Genting, a premier integrated family leisure and entertainment resort at the peak of Genting Highlands, will offer various events throughout the year in conjunction with the group's 45th anniversary.

The events were the group's way rewarding customers with rewards and giveaways which would include special discounts on hotel rooms, food and beverages, lucky draws, theme park packages, international shows and grand sales at retails outlets.

Bernama

Selangor wants to acquire AmFIRST land

AMFIRST Real Estate Investment Trust said the Selangor state government wants to compulsorily buy a piece of land in front of the The Summit Subang USJ for the light rail transit extension project.

The land, measuring 4,121 sq m, comprises 159 accessory parcels in the form of car park bays attached to two plots of land that are owned by AmFIRST REIT.

By Business Times

A time to learn and energise

The Malaysian Institute of Estate Agents (MIEA) has been organising its yearly Malaysian Annual Real Estate Convention for more than 10 years now, with its latest instalment in 2010 (popularly known as MAREC 10) scheduled on Jan 23 and 24 at the Putra World Trade Centre in Kuala Lumpur.

Estate agents and other property professionals throughout the country are expected to make a beeline for the convention over the weekend to learn, energise and perhaps reinvent themselves.

MAREC 10 promises to be a smashing success, if the number of participants registered so far is any measure. To date, a total of 400 people have signed up for MAREC 10 and the numbers continue to grow.

MIEA is also planning a welcome dinner on Jan 22, primarily for speakers, past presidents of MIEA and other VIPs. Delegates are also encouraged to attend this dinner, as the marketing opportunities are endless.

According to MAREC 10 convention chairman Loke Fu Fah, quite a number of those who have registered for the convention are negotiators. Negotiators are essentially sales and marketing staff who work under the direct supervision of registered estate agents.

MAREC 10, like the previous events, will have separate sessions for both estate agents and negotiators. Topics for both sessions have been carefully chosen and designed to deliver maximum value for money for both these groups.

When the idea of a separate session for negotiators was mooted several years ago, it was met with scepticism and reluctance. Estate agents felt that their negotiators might not be prepared to pay to attend these conventions. The organising committee, nevertheless, felt that it was about time MIEA played a role in the continuous evaluation of negotiators.

Thus, a separate session for negotiators was introduced two years ago at MAREC 08. According to MAREC 08 convention chairman Siva Shanker, the response was lukewarm at first but closer to the convention, more negotiators signed up.

“Soon, we were looking at more than 80 negotiators attending and we had to close registration then as seats were limited,” says Siva. “We never imagined that we would receive such response and we had only booked a small room for the negotiators session. As such, we couldn’t accommodate them at the last minute.”

For MAREC 10, MIEA is continuing the negotiators sessions on a bigger scale. The programme is being fine-tuned to be even better, with both estate agents and negotiators sharing sessions on the first day and attending separate sessions on the second day.

Successful brands
Among the topics to be presented for the estate agents session is “Discover Yourself And Your Estate Agency For Success”. The world is changing faster than businesses can keep up with while competition is heating up and this translates into demand for greater efficiency and better performance. Successful brands seem to be able to capture larger slices of the market whereas small players seem to find the marketplace a never-ending struggle. This paper analyses the effects of branding on creating a successful business and persona that will take you further in your industry.

To present this paper is John Lau, who is managing director of Hann Consulting Asia, which focuses on organisational diagnosis and organisational transformation.

Lau was trained in behavioural science with over 14 years of experience where his strengths have been capitalised in human capital assessment, recruitment strategies, leadership audit and organisational development.

He has headed the Human Capital Services Group of Deloitte Consulting Malaysia where business development, customer service transformation and performance enhancement form his core competencies.

Discipline
Meanwhile, for the negotiators session, an interesting topic being tackled is “Discipline And The Way Forward”. Discipline is the cornerstone of success and a crucial ingredient in achieving a successful business.

Discipline is what makes people wake up in the morning and drive themselves to the office. Discipline is what keeps them going, even when the odds are against them. Without willpower and discipline, most people will not amount to much.

To present this paper, the organisers have enlisted the help of veteran real estate agent Nixon Paul. Nixon is the director of Carey Real Estate and has more than 30 years of experience in the property industry. Over the years, he has single-handedly built Carey Real Estate into a formidable real estate firm.

Interested in attending the upcoming MAREC 10? Rates are given below.

The event is open to members of the public at RM800 per person.



Sign up now for the Malaysian Annual Real Estate Convention – MAREC 10.
For details, call MIEA. Tel: 03-79602577. Fax: 03- 79603757. E-mail secretariat@ miea.com.my. Website: www.miea. com.my

By The Star

SunCity plans RM800m office towers

Sunway City plans to inject the three office towers into its real estate investment trust

Sunway City Bhd (SunCity) will launch three office towers worth some RM800 million in Kuala Lumpur and within the Sunway Integrated Resort in Selangor.

The group plans to subsequently inject them into its real estate investment trust (REIT).

The property in Kuala Lumpur will be on Jalan Ampang next to the current Sunway Tower, formerly known as Wisma Denmark. This second tower, which will be 30 storeys high, will have 330,000 sq ft of nett lettable area with a value of RM230 million.

"Development plans are afoot and we will start physical work as soon as the plans are finalised," SunCity's managing director for property investment Ngeow Voon Yean said.
It is also planning two office developments with nett lettable space of 277,000 sq ft and 500,000 sq ft, valued at RM245 million and RM330 million respectively.

"These are in the advanced stage of design," he said.

Once ready, the offices will be leased as they are slated to be part of the proposed REIT.

Ngeow was speaking to reporters after the launch of Sunway Tower, a 27-storey building with 276,000 sq ft space.

SunCity bought the property for RM170 million and spent RM26 million on upgrading. The building, also said to be part of the planned REIT, saw rental rates improve 30-40 per cent to RM5.50 a sq ft. It is fully occupied compared with 40 per cent previously.

"With this inclusion, it has increased the commercial office net lettable area to about 600,000 sq ft and a total rental of about RM30 million a year to SunCity," Ngeow said.

By Business Times (by Vasantha Ganesan)

SunCity hopes to list property trust this year

SUNWAY City Bhd (SunCity) hopes to list its real estate investment trust (REIT) in Malaysia this year, the group founder Tan Sri Dr Jeffrey Cheah said.

"We are ready to go if the mar-ket is right for listing," he told Business Times at the launch of Sunway Tower in Kuala Lumpur yesterday.

Cheah said that the right mar-ket would be one that gives a yield of about 6 per cent, which is a more manageable level compared with about 8 to 8.5 per cent currently.

REIT yields rose last year as markets were hit, causing huge discounts to the net asset value (NAV).
When asked if it was certain that the listing would take place on Bursa Malaysia, Cheah said: "Everything points towards a listing in Malaysia."

"The timing (for a possible listing) this year looks more appropriate and we are working towards it," SunCity executive director Datuk Jeffrey Ng said.

It was reported that SunCity was looking at a RM3 billion to RM4 billion REIT which will include Sunway Pyramid Mall, Sunway Resort Hotel, Sunway Pyramid Tower Hotel and Sunway Medical Centre in Selangor as well as Sunway Carnival Mall in Penang.

The group first announced the REIT plan five years ago.

By Business Times

SunCity plans to inject assets into REIT

(From left): Kuala Lumpur mayor Datuk Ahmad Fuad Ismail signs his name while Tan Sri Jeffrey Cheah and Ngeow Voon Yean look on at the launch of Sunway City Bhd’s Sunway Tower.

KUALA LUMPUR: Sunway City Bhd (SunCity) may inject Sunway Towers at Jalan Ampang and Sunway Hotel Seberang Jaya in Penang into its RM4bil real estate investment trust (REIT), said managing director for property investment Ngeow Voon Yean.

Ngeow acknowledged that the group had been planning to float its property assets through a REIT for a number of years, but delayed it due to poor market conditions.

He added that SunCity was hopeful of listing its REIT this year.

“We’re seriously considering it (but) it all depends on timing. Once the window is open for an IPO (initial public offering), we’ll list. We hope to do it this year,” he told reporters after the launch of Sunway Tower yesterday.

Previous reports said SunCity intends to inject Sunway Pyramid Mall, Sunway Resort Hotel, Sunway Pyramid Hotel, Menara Sunway, Sunway University College and Monash University campus in Bandar Sunway, Sunway Carnival Mall in Penang and Tambun Hypermarket Perak into its REIT.

Sunway Tower comprises 27 levels of Grade-A office space with a net lettable area of 276,000 sq ft, eight levels of car park space and a freehold parcel of adjoining vacant land.

Formerly Wisma Denmark, the building was acquired by SunCity in 2007 for RM170mil. Ngeow said the group had spent RM26mil on refurbishments, which resulted in a 30% to 40% increase in rental rates to RM5.50 per sq ft.

Ngeow said the building was almost fully occupied, and the group would be constructing another tower next to it.

“The total net lettable area for both towers will be 600,000 sq ft. The new tower should be 27 to 30 storeys high and will cost RM300mil,” he said. The two will collectively be known as Sunway Towers.

Ngeow also said SunCity planned for the Sunway Integrated Resort two office developments of 277,000 sq ft and 550,000 sq ft with a value of RM245mil and RM330mil respectively.

On the outlook of the Grade-A office space within the Klang Valley, he said: “If it’s well positioned and well managed, there’s still a good demand both in the CBD (central business district) of the Golden Triangle and the suburbs. That’s why we’re confident of expanding in this sector.”

On the group’s joint venture project in Tianjin Eco-City, China, Sunway group chairman Tan Sri Jeffrey Cheah said the project was “proceeding as scheduled.”

The project, which would have a gross development value worth more than RM2.48bil, is a collaboration with Sino-Singapore Tianjin Eco-City Investment and Development Co Ltd (SSTEC).

SSTEC is a 50:50 joint venture between a Chinese consortium led by Tianjin TEDA Investment Holding Co Ltd and a Singapore consortium led by Keppel Group.

Meanwhile, Kuala Lumpur mayor Datuk Ahmad Fuad Ismail, who officiated the launch of Sunway Tower, said City Hall had yet to receive any application from Permodalan Nasional Bhd (PNB) or the Naza Group on their respective proposed 100-storey buildings.

“We only heard about this through the media. We’ve not received anything from either party,” he said.

In recent reports, PNB said it was looking at the possibility of developing a 100-storey skyscraper near the Stadium Merdeka/Stadium Negara area while the Naza group claimed it may develop a similar structure near the proposed Matrade Centre.

By The Star

Let’s be cautious about the property sector

Property markets in various parts of the world are coming alive again and property is regaining its lustre as one of the favourite investment instruments after more than a year of “hiccup” caused by the global financial crisis.

Even while Dubai is still mired in a crisis after the collapse of its property market last November, most markets that have succumbed to the global financial crisis are bottoming out and are on a recovery mode.

Despite the more positive outlook, industry players should not lose sight of the patches of “quick sands” that will easily negate any progress made if one is not careful.

Among the possible pitfalls that will happen include a relapse in the global economy if it falters from its recovery path that will send property prices on another downward spiral like what has happened in London, Singapore and Hong Kong.

Despite having shown a gradual recovery since the second half of 2009, the global economy continues to be filled with uncertainties this year.

There is still the possibility of a double dip or another round of correction before we can claim the worst is over.

Although Malaysia’s property market is also showing signs of recovery and there are more buyers looking for good property to buy, there are some outstanding issues that are still plaguing the market.

Firstly, there is still a mismatch between demand and supply of both landed residences and high-end condominiums in some parts of the country.

That explains why there are properties that have been completed in some townships that are still unsold and are languishing.

Most of these projects are located in rather secluded places that are not easily accessible and were built without prior market diligence and feasibility studies to gauge their feasibility.

Usually projects that are located in well planned or mature and vibrant neighbourhoods with ready facilities including schools, colleges, markets, shops and good road connectivity will have many ready buyers.

Developers that are affected by poor take-up for their property should, wherever possible, make as much effort to “redeem” their projects by introducing more value added features and facilities to them.

Hopefully, the extension of the light rail transit network to other parts of the Klang Valley will give a new lease of life to these projects.

Another area with higher supply of properties than demand at this juncture is the Kuala Lumpur City Centre (KLCC) vicinity.

This year alone, there will easily be another 1,200 new condominiums that will be completed.

Last year, about 2,000 units came onstream and not all have been sold yet.

Many of the units are still relatively large residences of more than 2,000 up to 7,600 sq ft whereas research has shown that there is a greater demand for smaller units of between 1,000 to 2,000 sq ft, especially among first time home buyers.

Instead of catering just to the super high-end clients, it will be worthwhile for developers to re-size their units and build more smaller units to make them more affordable for the buyers.

At average prices of RM900 to RM1,100 per sq ft, most of these smaller units will already have price tags of close to RM1mil or more.

Another challenge that will be faced by the market is the possibility of rising entry cost for buyers once developers decide to end their housing financing facilities.

Although a growing number of Malaysians have become savvy property buyers and own multiple properties, many are still dependent on the low entry cost offered by the developers and the banks in the past one year to make their first purchase.

Efforts to promote stronger buying interest among local buyers should be continued as they form the bulk of property purchases.

Malaysians are also known for having a longer term outlook and will not just liquidate their positions in a hurry like some of the foreign buyers.

Should the housing packages be ended, developers can help ease the burden of buyers by absorbing the cost of transactions including stamp duties and legal fees, among others, for houses priced below RM500,000.

Deputy news editor Angie Ng sees the need for closer consultation and collaboration between the various stakeholders of the property fraternity to offer their views on project planning and designs that will promote greater unity and kinship among Malaysians.

By The Star (by Angie Ng)

Hotelier: More can be done to promote tourism in the country

The Novotel Hydro Majestic Hotel was sold for RM156mil last year.

The outlook for the local hotel industry is expected to be positive this year after the hospitality industry showed some pick-up in the second half of last year, says Malaysian Association of Hotels (MAH) senior vice-president Ivo R Nekvapil.

“Barring any bad press with less emphasis on H1N1, the industry can do much better,” he tells StarBizWeek through an-email reply.

He says Malaysia is a great value-for-money destination and that it just needs more international brands toboost the country’spopularity.

“We need more innovative domestic packages and a push for more homestays. We also need plans to open more areas for tourists, like islands and eco resorts as in Sarawak,” he adds.

Malaysia should also cut the red tape where possible and create a “one-stop shop” for tourism like what the International Trade and Industry Ministry (Miti) and the Malaysian Industrial Development Authority (Mida) are doing for manufacturing, according to Nekvapil.

Tourism is Malaysia’s second highest revenue earner.

“We also need to strongly push the Malaysia My Second Home programme as there is huge potential there,” he says.

On recent news report that Tourism Minister Datuk Seri Dr Ng Yen Yen has urged hoteliers to review hotel room rates, Nekvapil says 5-star hotel rates must increase as the rates in Malaysia are still the lowest.

“(Rates for five-star hotels) must go up comparable to other hotels in Asia. Then the 2, 3 & 4-star hotels can move up to a more realistic level,” he says.

Integrated provider of serviced offices, hotels and serviced residences company, The Nomad Group Bhd, tells StarBizweek that they are positive about Kuala Lumpur’s serviced residences business.

A spokesperson says the company believes there are plenty of opportunities to achieve high occupancy.

“Although occupancy dropped slightly in November/December of 2009, enquiries for Nomad Residences Bangsar, for example, have since picked up this month,” he says in an email.

He adds that the hotel group’s residents consist of various nationalities such as British, French and Australians.

About 80% of its tenants comprise of international business executives.

“We are not only getting leads from multinational companies but also generating interest from entrepreneurs who are in Kuala Lumpur to set up new businesses. The Nomad also provides them with serviced offices to work in,” he says.

The spokesperson says location is very relevant and Bangsar is definitely still a favourite among both expatriates and Malaysians.

“The variety of food and beverages outlets, shopping centres and specialty shops makeBangsar an attractive choice for many,” he notes.

The Nomad Residences caters to those on short and long stays, making it easy for people who are in transition, relocating or who have been posted to Kuala Lumpur.

“We have also seen improvement in our rates, as more people are demanding for the convenience of full fledge serviced apartments. Even leisure travellers looking to stay in one destination for more than 5 days are opting for the serviced residences type of accommodation,” he says.

Previndran Datuk Singhe ... ‘Interest will be mainly in Kuala Lumpur, Penang and Kota Kinabalu.’

Zerin Properties chief executive officer Previndran Datuk Singhe says the company is expecting investments in hotel properties to pick up this year.

“Interest will be mainly in Kuala Lumpur, Penang and Kota Kinabalu,” he says in an e-mail, noting that the Novotel Hydro Majestic Hotel was sold for RM156mil to a local buyer last year.

“We saw a drop of investments in hospitality assets in 2008 due to lack of foreign buyers but by 2009, we saw the return of investors and the return of foreign sellers,” Previndran says, adding that factors which contribute to higher transactions include growth in the tourism business as well as higher low cost carrier traffic.

“Tourists to Malaysia are still enjoying a much lower cost of spending in hotels. On average, they pay about RM560 for the hotel, compared with RM1,867 in Singapore and RM895 in Bangkok,” he says.

It was reported recently that Malaysia recorded tourist arrivals of 23.5 million in 2009, more than its initial target of 19 million despite a global decline in the industry due to the economic downturn and other challenges.

Previndran, citing a report by Travel & Tourism 2009, says Malaysia has emerged as the fourth most price competitive country in the world out of 133 countries surveyed.

On new trends in hotels and resorts in Malaysia, Previndran notes a rising trend in spa resorts, branded budget accommodation, health tourism and nature tourism.

By The Star (by Edy Sarif)

AmanahRaya REIT to buy two buildings for RM227mil

PETALING JAYA: AmanahRaya Real Estate Investment Trust’s (REIT) management company, AmanahRaya-REIT Managers Sdn Bhd, has proposed to buy two leasehold buildings for RM227mil.

In an announcement to Bursa Malaysia on behalf of the management company, ECM Libra Investment Bank Bhd said the acquisitions and related expenses would be part-funded via a proposed placement to raise RM119mil.

“The actual number of placement units to be issued pursuant to the proposed placement will be determined based on the final issue price of the placement units, which shall be determined later,” the investment bank said adding that AmanahRaya-REIT Managers proposed to acquire the six-storey Selayang Mall and the 13-storey Dana 13, a stratified office building that is part of the Dana 1 Commercial Centre in Petaling Jaya.

By The Star

KYM set to wrap up RM102m deal

Property developer KYM will soon conclude a deal to sell 16.5ha of land in Manjung, Perak, to Brazil's Vale for RM101.9 million

VALE S.A., the world's biggest iron ore miner, will soon conclude a deal to buy 16.5ha of land in Manjung, Perak for RM101.9 million from property developer KYM Holdings Bhd, people involved in the talks said yesterday.

The deal was first announced in June 2009, with a year-end wrap-up target initially. However, that has been extended to January 18.

Brazil's Vale plans to invest about US$5 billion (RM16.7 billion) in Perak over five years for the iron ore distribution and pelletising plant project.

KYM's controlling stakeholder Datuk Lim Kheng Yew, a merchant banker turned businessman, told Business Times that the company is close to wrapping up the deal, but declined to speculate on the time line.
After months of lull, the project appears to have gathered pace.

In December, it signed a conditional deal for transhipment services of iron ore cargo with Integrax Bhd. Integrax's Lekir Bulk Terminal Sdn Bhd (LBTSB) owns the Lekir Bulk Terminal (LBT) in Manjung.

As part of the deal, LBTSB will pump in as much as RM200 million to expand LBT and make it a transhipment hub.

But it is understood that KYM is also keen to be part of the US$5 billion project, banking on its close relationship with Vale.

Lim noted the entire land sale to Vale would strengthen KYM's balance sheet, and help reduce interest costs.

As it stands, Vale also has an option to buy another 305.95ha of land in Manjung from KYM for RM93.8 million cash.

Vale will be buying the land from Harta Makmur Sdn Bhd, a 54 per cent unit of KYM. KYM controls Harta Makmur via its 90 per cent shareholding in Tegas Consolidated Sdn Bhd.

Proceeds from the sale will boost KYM's shareholders' funds to RM72.3 million from RM23.85 million as at end October 2009.

Its debt to equity ratio, a measure of debt, will fall to 0.41 times from about 8.9 times, with net asset per share rising to 89 sen from 29 sen before the sale.

The proposed sale of the entire property will help KYM cut debts of RM209.71 million as at January 31 2009.

By Business Times

Higher floor price may hurt second-home programme

The government's move to raise the minimum property purchase price for foreigners may hurt its campaign to promote Malaysia as a second home.

The Economic Planning Unit released a statement yesterday, saying that the ruling, first announced in June 2009, is effective January 1 2010.

In June, the Prime Minister Datuk Seri Najib Razak said the minimum threshold for acquisition of residential units by foreign interest at RM250,000 and above, would be increased to RM500,000 and above come January 1 2010.

It was part of a wider deregulation of FIC guidelines.
Malaysia My Second Home programme or MM2H is an international residency programme promoted by the Ministry of Tourism to allow foreigners to live in the country on a long-stay visa of up to 10 years.

"It won't be so much of a problem for Kuala Lumpur, where properties easily cost half a million ringgit, but states like Terengganu and Ipoh ... where can you find properties in that range?" International Real Estate Federation (FIABCI) Malaysia president Datuk Richard Fong told Business Times yesterday.

A survey done by FIABCI found that half of foreign purchases were for properties between the price of RM250,000 and RM500,000.

"So you are really wiping out half of the market by increasing the threshold limit," Fong said.

Some 2.5 per cent of total property investments are by foreigners.

However, real estate firm Zerin Properties chief executive officer Previndran Singhe told Business Times that it would not affect the property market, as foreigners are already buying properties of RM500,000 and above.

Real Estate and Housing Developers Association (REHDA), meanwhile, concurred with FIABCI's view.

"The ruling will not affect the property agents, who mainly look at Kuala Lumpur, but I have to look at it on a national level and it will affect outlaying areas such as Terengganu and Malacca," REHDA president Datuk Ng Seiong Liong told Business Times.

While applying the rule to Kuala Lumpur would be fine, a blanket policy for the whole country would hurt foreign property investments, he said.

By Business Times

MK Land plans RM150m rights issue

PROPERTY developer MK Land Holdings Bhd plans to raise some RM150 million from a rights issue of equity-linked instruments.

Hong Leong Investment Bank Bhd told Bursa Malaysia that the proceeds will be used to partly repay bank borrowings and for working capital.

A detailed announcement is expected to be made once the terms of the rights issue have been finalised.

By Business Times

AmanahRaya REIT eyes 2 properties

AmanahRaya REIT has proposed to acquire two properties valued at a total of RM227 million from Amanah Raya Bhd, as trustee for Kumpulan Wang Bersama.

The properties concerned are the six-storey Selayang Mall at Gombak for RM128 million and a 13-storey stratified office building which forms part of the Dana 1 Commercial Centre known as Dana 13 for RM99 million.

In conjunction with this, AmanahRaya REIT proposed to undertake a proposed placement of such number of new units to raise proceeds of RM119 million at an issue price to be determined later.

It also proposed to undertake an increase in the existing approved fund size of 431,553,191 units, by such number of placement units to be issued under the proposed placement.
"The proceeds arising from the proposed placement of RM119 million will be utilised to part-fund the proposed acquisitions and defray the estimated expenses relating to the proposals," AmanahRaya REIT said in a statement today.

According to the company, the proposed acquisitions are in line with its investment objective, which is to provide the unitholders with stable distribution income by acquiring yield accretive assets and good quality properties with strong recurring rental income.

"The acquisition will increase AmanahRaya REIT's total asset value from RM752.53 million to about RM1,007.49 million," it said.

It added that the acquisitions are expected to be implemented and completed between the first and second quarter of 2010.

By Bernama

Minply signs MOU to develop project

KUALA LUMPUR: Minply Holdings (M) Bhd’s wholly-owned subsidiary Timberion Sdn Bhd has signed a memorandum of understanding with Elitprop Sdn Bhd to develop a housing project in Gemas, Negri Sembilan.

The project will have a a gross development value of RM192mil.

In a filing with Bursa Malaysia yesterday, Minply said the housing project comprised 1,586 single-storey terrace houses.

The development is expected to generate a profit of RM30mil over six years.

Minply said Timberion would undertake to submit the applications for the project and then construct and complete it at the company’s own cost and expense.

Under the sharing ratio, Timberion’s stake is 75% of all units developed and the remaining 25% will go to Elitprop.

By The Star

Mah Sing: Strong response to projects

MAH SING GROUP Bhd’s Perdana Residence 2 in Selayang and the Garden Residence in Cyberjaya, are expected to be officially launched in the first half of this year.

The response for the projects has been overwhelming to date, said its group managing director, Tan Sri Leong Hoy Kum.

The response indicates that we have planned the right product mix,” he added, in a statement in Kuala Lumpur yesterday.

By Bernama

Buyers flock to Mah Sing projects

KUALA LUMPUR: Mah Sing Group Bhd’s first residential projects for the year proved to be a hit with potential buyers queuing hours before the start of the project previews that end on Jan 17.

In a statement yesterday, Mah Sing said Perdana Residence 2 in Selayang and Garden Residence in Cyberjaya were its award-winning residence series and expected to be launched in the first half of this year.

By The Star

Mah Sing to launch 2 residential projects

Mah Sing Group Bhd's Perdana Residence 2 in Selayang and the Garden Residence in Cyberjaya, are expected to be officially launched in the first half of this year.

The response for the projects has been overwhelming to date, said its group managing director, Tan Sri Leong Hoy Kum.

"The response indicates that we have planned the right product mix," he added, in a statement here today.

The Garden Residence will have two and three-storey super link homes, two and three-storey semi-detached residences and three storey bungalows.
The Perdana Residence 2 will see the introduction of three-storey superlink homes.

By Bernama

Minply JV to undertake RM192m housing project

KUALA LUMPUR: MINPLY HOLDINGS (M) BHD is undertaking a housing project with Elitprop Sdn Bhd, in north of Gemas, Negeri Sembilan, with a gross development value of RM192 million.

Minply said on Wednesday, Jan 13 its unit Timberion Sdn Bhd had signed an MoU with Elitprop to undertake the project which comprised of 1,586 single-storey terrace houses.

Timberion will undertake to submit the applications for the project and then construct and complete the project at its own cost and expense.

"The GDV for the development is estimated to be RM192 million and the expected profit is estimated to be RM30 million over a period of six years," it said.

Under the sharing ratio, Timberion's stake is 75% of all units developed and the remaining 25% will go to Elitprop.

By The EDGE Malaysia (by Joseph Chin)

Maymont expects all 'bungalows in the sky' to be sold by year-end

MAYMONT Development Sdn Bhd, controlled by property tycoon Datuk P. Kasi, is confident that its RM700 million luxury super condominium project, Matahari, will be fully taken up by the end of the year.

The 158 units of the project in Desa Sri Hartamas, Kuala Lumpur, are being marketed as "bungalows in the sky". Prices range from RM3.1 million to RM10.8 million per unit.

"So far, we've sold 43 per cent of the total units," Maymont head of sales Prabu Ananthan told a media briefing in Kuala Lumpur yesterday.

"With the Chinese New Year break and the (property) market picking up, we are confident of selling all units by the year-end," he said.
The developer expects annual rental yield of 6 per cent per condominium unit, with the superior units' targeted rentals ranging between RM16,000 and 18,000 a month.

On why the project was halted after construction started in 2007, Prabu said it was part of the company's strategic effort to market the Matahari units "at the right time".

Maymont head of marketing Chelvi Ananthan said the project was 35 per cent complete and the handover of the first phase, comprising 30 units, was scheduled for 2012.

Kasi is the landowner of the 2ha freehold tract. The project is being carried out in his private capacity.

The Matahari condominium units are 40 ft wide, which is about two normal linkhouses, with large built-ups of more than 3,900 sq ft. The average floor-to-ceiling height of 13 ft (23 ft at its highest) provides natural lighting and cross-ventilation.

The condominium units are sold partly furnished and with three parking bays, while the penthouses will have five parking lots each.

The project is accessible via the Sprint Highway, with direct access to the North Klang Valley Expressway, via the Duta interchange; Federal Highway, via the Pantai Expressway; and Litrak Damansara-Puchong Highway, via the Penchala Link.

By Business Times

UEM Land to raise RM970mil via rights issue

KUALA LUMPUR: UEM Land Holdings Bhd has proposed to raise about RM970mil via a rights issue to repay its borrowings, pay for the acquisition of land in Cyberjaya and for property development and working capital purposes.

In a filing with Bursa Malaysia yesterday, UEM Land said the issue price for the rights shares was expected to be fixed at a discount of at least 30% to the theoretical ex-rights price of its shares immediately before the price fixing date which would be determined and announced in due course.

UEM Land intends to utilise RM633mil from the gross proceeds to repay a term loan owed by wholly-owned unit Bandar Nusajaya Development Sdn Bhd and RM266.2mil for property development.

Wan Abdullah Wan Ibrahim says the rights issue will allow the company to repay its borrowings

Managing director and chief executive officer Wan Abdullah Wan Ibrahim said the proposed rights issue would allow the company to raise funds to repay its borrowings and reduce its interest cost which would lead to a more robust capital structure.

“The inflow of capital for our property development activities will accelerate the realisation of value from our Nusajaya land bank and spur UEM Land’s future earnings growth,” he said, adding that the company had a number of property projects in the pipeline.

“We are also optimistic that for 2010, the overall property market in Malaysia will outperform 2009 – particularly for Johor where we expect a lot of excitement arising from the successful implementation of Iskandar Malaysia’s initiatives and the spillover demand from Singapore with the recovery of Singapore’s property market and the opening of the Marina Bay Sands and Resorts World Sentosa,” Wan Abdullah said.

Subject to all approvals being obtained, the proposed rights issue is expected to be completed by April 30.

In line with its confidence in and continuing support of UEM Land, UEM Group Bhd (a major shareholder of UEM Land) has provided its irrevocable written undertaking to subscribe in full or procure the subscription in full of its entitlement under the proposed rights issue

As at Dec 31, UEM Group held directly 1.87 billion UEM Land shares, representing 77.14% equity interest. Pursuant to the UEM Group undertaking, UEM Group’s minimum subscription amount will be about RM748.2mil.

By The Star

Property market went from world’s best in 2008 to the worst

DUBAI: Dubai’s housing rout sent prices down 52% in the past year, prompting some homeowners to abandon their cars and mortgage payments and flee the country. Not one received a foreclosure notice.

Barclays Plc won the sheikdom’s first foreclosure cases in court, clearing the way for lenders holding about US$16bil of Dubai home loans to take action when borrowers don’t pay. Islamic lender Tamweel PJSC, the emirate’s biggest mortgage bank, has several of its own foreclosure claims pending and estimates about 3% of its mortgages are in default.

“Banks will be more aggressive in pursuing legal action if they see the process is efficient,” said Antoine Yacoub, a banking analyst at Moody’s Investors Service Inc. “They were trying to avoid the courts and restructure most of their loans, but once they see a precedent has been set, they will be encouraged to push more cases through.”

The successful foreclosures by Barclays may open the floodgates in Dubai’s property market, which went from the world’s best in 2008 to the worst after credit dried up and speculators who had fuelled price increases left the market, according to Deutsche Bank AG. Moody’s estimated in September that 12% of the 27,000 residential mortgages in the sheikdom would default within 12 to 18 months.

Banks and developers until now have avoided the process of reclaiming homes through the courts, barred by tradition and an arcane legal process that few understood. The Barclays and Tamweel cases may change that, because they show that a 2008 mortgage law – setting out rules for default, foreclosure and repossession – is working.

The law requires lenders to give homeowners 30-day notice of their intent to pursue a foreclosure, said Jody Waugh, a partner at law firm Al Tamimi & Co in Dubai. Courts then review the case and can issue a debt judgment that turns the property over to Dubai’s Land Department for auction. Waugh estimates the process may take two to four months.

Barclays, Britain’s second-largest bank, said in an e-mailed reply to questions that it won the foreclosure orders, without providing details of the cases. The ruling showed that Dubai’s market was “evolving and is poised to come at par with other mature markets of the world,” the bank said.

Both lenders and developers in the United Arab Emirates have tried to stem rising defaults through out-ofcourt settlements with distressed customers after falling prices left buyers with mortgages worth more than their properties. That has helped minimise the amount of bad debt on their balance sheets and kept repossessed houses off a market that’s already suffering from too much supply. Provisions for bad loans in the UAE surged 68% by to 32 billion dirhams (US$8.7bil) as of November, compared with a year earlier. Before the mortgage law was passed, lenders and builders could resort to the courts to enforce contracts, though they didn’t have the right to foreclose.

Tamweel’s pending cases, filed almost two months ago, involve homes abandoned by owners who left Dubai at the onset of the global financial crisis, chief executive officer Wasim Saifi said. Tamweel’s default rate has been “hovering between 2.5% and 4% for the past six months,” he said.

As alternatives to foreclosures, lenders in Dubai have extended payment periods and developers allowed customers with several properties to return some of them.

By Bloomberg

RM100m facelift for KL Plaza

KL PLAZA, one of Kuala Lumpur's oldest shopping centres on Jalan Bukit Bintang, will undergo over RM100 million facelift and be renamed "fahrenheit 88".

Slated for opening on August 8 this year, the owners of the 511,000 sq ft mall are confident of the performance of fahrenheit 88, which will be positioned as a trendy lifestyle shopping complex offering affordable luxury.

The mall is owned by Makna Mujur Sdn Bhd, which is owned by Pavilion International Development Fund Ltd. The principal of this fund is Qatar Investment Authority (QIA). QIA also owns 49 per cent of the Pavilion KL shopping mall nearby.

KL Plaza was acquired by Makna Mujur for RM470 million and is being developed by Kuala Lumpur Pavilion Sdn Bhd.
"fahrenheit 88 is set to be an iconic shopping destination that will enhance the retail scene along Jalan Bukit Bintang," Makna Mujur's director Datuk Lee Tuck Fook said.

He added that it has thus far received "pretty good" tenancy and expects full occupancy before it opens in August.

When asked about the expected return on investment, Lee said: "It is a long-term holding. We are not particular about how long it will take... (But) are confident about the investment here. We can always, build a mall, but we cannot replicate the location."

In fact, the mall is adding a new entrance from Jalan Imbi.

As such, its strategic location on Jalan Bukit Bintang as well as the new access from Jalan Imbi are expected to lure an annual visitorship of between 24 million and 36 million to fahrenheit 88.

The mall will undergo a total change from its original look, with the addition of a skylight.

Lee also said that Pavilion International is constantly on the look out for more retail mall investments and is in talks with malls both locally and abroad.

However, none is close to signing.

By Business Times (by Vasantha Ganesan)

Makna invests RM100m in KL Plaza refurbishment

KUALA LUMPUR: Makna Mujur Sdn Bhd is investing more than RM100mil to refurbish KL Plaza which, upon completion, will be known as Fahrenheit 88.

Director Datuk Lee Tuck Fook said the move was aimed at transforming KL Plaza into the hottest shopping mall in the Golden Triangle.

Fahrenheit 88 would open for business on Aug 8, he told reporters after unveiling KL Plaza’s new logo yesterday.

Makna Mujur is the owner of KL Plaza.

Lee said Fahrenheit 88 would consist of 300,000 sq ft of lettable space spread over five levels of zoned shopping space.

“The new and improved mall structure will feature special highlights such as a new sleek glass facade which allows for the sky light to illuminate the concourse, lending to a spacious and modern ambience,” he said.

A trendy lifestyle mall, targeting both local and foreign urbanites, Fahrenheit 88 would consist of 280 retail shops offering the hippest fashions, in-vogue technology gadgets and the trendiest food and beverage outlets.

By Bernama

Green areas should be gazetted as permanent Urban Forest Parks

NATURALLY endowed with forest, Kuala Lumpur has always been a garden city - an identity that few cities in the world can claim.

This unique identity must be preserved and enhanced.

Any city in the world can have manicured and landscaped gardens but none has the natural tropical urban forest designed and built by Mother Nature. Those who are familiar with some of these patches of forest especially in Sungai Penchala, Bukit Tunku, Bukit Damansara, Bukit Kiara, Taman Tun Dr Ismail, Federal Hill and Bukit Nenas are often surprised by the rich biodiversity of these areas.

From the primitive fungi to the more developed small mammals, our urban forest is full of surprises.

A system linking the small urban forests (as part of the green network plan) will further enhance their value. With some management, these areas will be the pride of Kuala Lumpur and this is what will make it different (creating a particular city and image).

More importantly, these urban forests will improve the quality of life for the city’s denizens. Other cities in Malaysia can emulate Kuala Lumpur in creating urban forest parks and making them an emblem for Malaysian cities.

Since most of the green areas are government land, they should be immediately gazetted as permanent Urban Forest Parks (UFP) while the privately-owned land be allowed to develop as low-density residential or commercial areas. Even better if the Federal Government could acquire some of the privately-owned urban forests and add on to the UFP.

Notices of development projects are popping up everywhere at the expense of the urban forests but it is not too late for the authorities to take appropriate action to keep these urban forests intact.

The three forest reserves — Bukit Nenas, Bukit Sungai Puteh and Sungai Besi together with patches of agricultural areas make up less than 0.07% of the land use in the territory. It will be great in the spirit of the KL Structure Plan 2020 — which pledged to give emphasis on social and environmental development — to preserve at least 1% as UFP for posterity.

Trying to make Kuala Lumpur outstanding by constructing tall buildings and other man-made infrastructure will only be temporary. Some other city in the world will outdo Kuala Lumpur in mega structures the next day, but a city adorned with natural forest gardens is an identity that lasts.

The city UFP will be a major selling point for tourism and contribute to quality living for urbanites.

By The Star

Emkay Group bags Brand Laureate award

The Emkay Group has been awarded the coveted Brand Laureate Award, touted as the "Grammy Awards for branding" in the SME's Chapter Awards 2009, under the Property Development Preferred Brand.

Founded by Tan Sri Mustapha Kamal Abu Bakar 26 years ago, Emkay Group has over the years accumulated notable success stories in the Malaysian property industry scene with MK Land Holdings Bhd as its public-listed arm.

To date, under the public-listed arm, some 43,000 units of residential, commercial and resort properties have been built over its 2,835ha of land in strategic locations such as Damansara Damai, Bandar Baru Sungai Buloh, Damansara Perdana, Cyberjaya and prominent resorts such as Bukit Merah Laketown Resort, Langkawi Lagoon Resort and Taiping Golf Resort which amounts to a total GDV of RM 5.3 billion.

The current projects under the Emkay Group which is the private entity under Mustapha Kamal includes NeoDamansara in Damansara Perdana, MKN Embassy Techzone and NeoCyber in Cyberjaya and Belum Rainforest Resort in Pulau Banding, Gerik, Perak.
Recently the group ventured into the international market through a joint venture in Bangalore, India, with the Embassy Group of India to develop affordable homes on a 121.5ha land.

By Business Times

'No plans to sell Sutera Harbour'

SUTERA Harbour Resort has denied that its property in Kota Kinabalu is up for sale.

"Sutera Harbour Resort is not up for sale. As president of the resort, I assure all stakeholders that there is no intention to sell the resort," Datuk Edward Ong Han Nam said.

Business Times had reported yesterday that the resort was up for sale for RM1.5 billion, quoting sources.

Sutera Harbour Resort was asked about the story, but it did not deny this.

By Business Times

Property perking up

Gamuda Land will launch its second gated-and-guarded precinct at Bandar Botanic in Klang next month.

PETALING JAYA: The local property market is in for a brighter prospect this year as the economy is forecast to return to growth while prices are now at affordable levels.

A recent CIMB Research report said that due to moderate price appreciation, rising income and record low interest rates, affordability of residential properties in Malaysia was at its all-time best.

It said that for this year, developers such as E&O Property Development Bhd (E&O Prop) would focus on its maiden condominium venture at Seri Tanjung Pinang, Penang.

“The RM1.8bil project will kick off with the official launch of the first block this month, which includes an aggressive awareness campaign,” it said.

E&O Prop would also work towards the launch of a new condo in Kuala Lumpur as its St Mary Residence project had already reached a critical milestone, with a combined take-up of 60% for the two blocks, it said.

“For SP Setia Bhd, the group is targeting to sell a minimum RM1.6bil worth of properties in FY09/FY10.

“It will continue to focus on its core competency of township development but at the same time, lay foundations for a big improvement in profits over the longer term from two fronts – commercial-type properties in the Klang Valley and overseas contribution from Vietnam and China,” it said.

The research house said that a year ago, most developers’ strategies were to hold off on new launches, consolidate their business activities and change the product mix to weather the storm.

“Now, most developers appear optimistic about longer-term prospects and are willing to take on more risks,” it said.

DTZ Nawawi Tie Leung Property Consultants Sdn Bhd deputy managing director Adzman Shah Mohd Ariffin said new residential launches in the Klang Valley this year would focus on mainly high-end properties in well-established locations.

These are the KL City Centre/Golden Triangle, Jalan Tun Razak corridor, Mont’ Kiara/Sri Hartamas and Mid Valley/Seputeh.

He said landed properties would still be sought after as land became scarce in and around KL city and increasing preference for low-density boutique developments.

“Features such as better security, individual pools, greeneries, panoramic views and aesthetic designs will continue to be incorporated in the developments.

“Prices will continue to be tested at increasingly higher levels but will largely depend on the positioning of the products and the performance of the first phase launched in the last three months,” Adzman told StarBiz in an e-mail reply.

He added that innovative packages such as stretched instalment periods and low downpayment offered by developers, coupled with attractive rates offered by financial institutions, would continue to spur buying.

“As long as the base lending rate stays at its current level, the market is expected to remain active albeit at a slower rate unless the economic recovery is expedited,” he said.

He added that the Government’s recent review of the real property gains tax would also help the secondary and sub-sale market.

Glomac Bhd said the company would launch new phases at its township this year but didn’t give details on when they would take place.

A spokesman said the new phases would be at Bandar Saujana Utama, Saujana Rawang and Sri Saujana (Johor Baru).

Gamuda Land Sdn Bhd told StarBiz that it would, at end-February, launch its second gated-and-guarded precinct, Ambang Botanic 2, at Bandar Botanic in Klang.

A company spokesman, in an e-mail reply, said the new project following its earlier Ambang Botanic 1 was prompted by the increasing demand for gated-and-guarded living.

By The Star (by Edy Sarif)

Gadang upbeat, plans new projects

DEVELOPER and construction firm Gadang Holdings Bhd is upbeat on the property outlook for this year and planning several new developments in the Klang Valley.

Managing director Tan Sri Kok Onn said the company has 46ha of prime land in the Klang Valley, Penang and Johor for development.

Kok told Business Times that he was expecting the landbank to generate a gross development value exceeding RM700 million over the next five years.

He said the company, through development arm Gadang Land Sdn Bhd, will build medium- to high-end houses, condominiums, offices and shoplots.
Kok declined to give specifics as the projects were still in the planning stage.

"We are optimistic of the industry but will remain cautious, especially with our high-end developments, as people are still careful with their money," he said.

Gadang's ongoing developments are mostly priced in the medium range.

They include retail, office suites and three-storey superlink homes in Segambut, Kuala Lumpur; medium- and low-medium-cost apartments in Sungai Buloh, Selangor; and single-storey terraced houses and single-storey semi-detached houses in Rawang, Selangor.

However, Gadang will be moving to the Mines area in Seri Kembangan, Serdang, within the next 12 to 15 months to develop seven super-luxury bungalows, worth a combined RM40 million, or more than RM5 million each.

The bungalows will be built on 74.8 sq ft of leasehold vacant land offered by a boutique developer in Mines.

"We are working on the designs and layouts. We hope to launch the units by the end of this year or early next year," Kok said.

Gadang's wholly-owned unit, Gadang Engineering (M) Sdn Bhd (GESB), will secure the land from Bluwater Development Bhd (formerly Mines Resort Bhd) as contra for debts owed by the latter.

Bluwater owes GESB some RM34 million for completing main building works two years ago for a commercial block and a tower featuring offices, serviced apartments, shoplots and facilities in Mines.

Bluwater is a unit of Clearwater Group, controlled by Dian Lee Cheng Ling, eldest daughter of property tycoon Tan Sri Lee Kim Yew.

By Business Times (by Sharen Kaur)

IGB raises MiCasa price tag to RM250m

IGB Corp Bhd, which owns and operates the MiCasa All Suites Hotel in Kuala Lumpur, is still interested in selling the property - but the price tag is much higher now.

Its executive director Tan Boon Lee said the hotel, which reopened last month following a two-year RM85 million renovation exercise, is now valued at RM250 million.

"If the price is right, why not?" Tan said, when asked if IGB would still be keen to sell the asset, as it did two years ago.

MiCasa closed its doors at the end of 2007 and IGB was looking to either sell the property or to give it a makeover.
The renovation is the five-star property's first major refurbishment since its opening 21 years ago.

General manager James Loo, in a recent interview with Business Times, said it expects that it will take six to seven years to recoup its RM85 million investments.

Located off Jalan Tun Razak, the hotel had its soft opening on December 9 2009 with the opening of 58 rooms from a total inventory of 242 rooms.

MiCasa plans to open a floor each week. Today, it has already opened 100 rooms.

Loo said that that following the upgrade, the hotel hopes to see gross operating profit (GOP) improve to 48 per cent from 45 per cent previously.

GOP is gross revenue (from rooms, food and beverage, laundry or business centre) minus cost of operations (such as wages, electricity and amenities).

In the first year of operations, MiCasa is targeting an average room rate (ARR) of RM300 and an occupancy of 65 per cent. A bulk of its market will be the long-staying corporate travellers.

"MiCasa used to have a lot of diplomats, embassy and oil and gas guests at our hotel," Loo said, adding that it plans to rope in this clientele as it now has a better product.

The hotel's business-to-leisure revenue split was 85 to 15 per cent. And it plans to keep this ratio.

Prior to its closure at the end of 2007, MiCasa posted an ARR of RM270 and an occupancy of 75 per cent.

Loo said that year-on-year growth from 2011 onwards will be RM300 in ARR and 5 per cent in occupancy.

The hotel, Loo said, was stripped bare to its structure, with the entire mechanical and engineering work redone.

By Business Times (by Vasantha Ganesan)

Maymont expects RM700m sales from luxury super condos

KUALA LUMPUR: Maymont Development Sdn Bhd expects to sell all 158 Matahari luxury super condos worth a total of RM700 million in Desa Sri Hartamas in six to eight months, said its head of sales Prabu Anathan.

"About 43% of the units has been taken up largely by local buyers for both investment and staying purposes," he told a media briefing here yesterday.

Construction work on the project started in 2007, and it is poised to be completed in 2011.

"The construction work now is about 35% completed, and we are expecting to hand over keys to the owners in 2012," Prabu said.

The 5.2 acres Matahari project is located next to Damansara Heights, near Kenny Hills. It consists of 129 superior, 12 duplex and 17 penthouse units, ranging from 3,090 to 10,823 square feet. The prices range from RM3.11million to RM10.77million. Prabu said investors could impressive rentals per annum for their monthly mortgage repayments.

"The concept of a 'bungalow in the sky' not only makes its position unique among other condominiums but also makes this ideal property for Malaysia's expatriate rental market," he said.

He added: "We estimate that the superior units would attract rentals of between RM16,000 and RM18,000 per month, giving a yield of about 6% per annum and enabling banks to offer financing of up to 90%."

Each luxury super condo will have three allocated car park bays, while the penthouses are entitled to four.

By The EDGE Malaysia (by Darlene Liew)

Sutera Harbour Resort up for sale?

The five-star 956-room Sutera Harbour Resort in Kota Kinabalu, Sabah, is up for sale for an estimated RM1.5 billion, sources say.

Sprawling over 155.5 hectares of reclaimed land, the asset includes two hotels - The Pacific Sutera and The Magellen Sutera, a 27-hole golf and country club and a 104-berth Sutera Harbour Marina.

The Pacific Sutera and The Magellen Sutera have 500 and 456 rooms, respectively.

The property is understood to be owned by Singaporean Datuk Edward Ong Han Nam through OCK group of companies.

Sutera Harbour, which opened in 1998, is said to have met several real estate agents for a possible disposal of the property.
It is unclear if any offers have been made.

Sutera Harbour neither confirmed nor denied if the property has been put up for sale when contacted.

"As far as the management is concerned, there is no change in the corporate structure of the company," Sutera Harbour Resort director of public relations Nilakrisna James said in an e-mail to Business Times (BT).

This OCK Investment Pte Ltd's project was reported for a planned RM1.2 billion resort-cum-residential development. OCK is a family-owned company which is mainly involved in the construction and property development.

In an agreement with the Sabah state government, the state had the option to take up to a 20 per cent stake in the Sutera Harbour Resort project. However, BT was unable to ascertain if the state had exercised the option.

By Business Times (by Vasantha Ganesan)

UEM Land rights to raise RM970m

UEM Land Holdings Bhd (ULHB) plans to undertake a rights issue to raise gross proceeds of approximately RM970 million.

In a statement today, ULHB said the proceeds would be used for repayment of borrowings, payment for the acquisition of land in Cyberjaya and for property development and working capital purposes.

Its managing director and chief executive officer, Wan Abdullah Wan Ibrahim, said the rights issue would allow the company to raise funds to repay borrowings and reduce interest cost which would lead to a more robust capital structure.

"Further, the inflow of capital for our property development activities will accelerate the realisation of value from our Nusajaya land bank and spur ULHB’s future earnings growth," he said.

Wan Abdullah said ULBH has a number of property projects in the pipeline which were due to be launched soon and was confident confident they would be well-received by the market.

"We are also optimistic that for 2010, the overall property market in Malaysia will outperform 2009 -- particularly for Johor where we expect a lot of excitement arising from the successful implementation of Iskandar Malaysia’s initiatives and the spillover demand from Singapore with the recovery of Singapore’s property market and the opening of the Marina Bay Sands and Resorts World Sentosa," he said.

ULHB said UEM Group Bhd (UEMG), its major shareholder, has provided irrevocable written undertaking to subscribe for its entitlement in full under the proposed rights issue.

"As at December 31, 2009, UEMG holds directly 1.873 billion ULHB shares, representing 77.14 per cent equity interest in ULHB.

"The remaining portion is expected to be underwritten," it said.
It said subject to all approvals being obtained, the proposed rights issue was expected to be completed by April 30, 2010.

By Bernama

UEM Land proposes rights issue to raise RM970m

KUALA LUMPUR: UEM LAND HOLDINGS BHD has proposed to undertake a rights issue to raise up to RM970 million of which the bulk would be used to repay the UEM Group term loan of RM633 million and RM266.2 million for property development.

UEM Land said on Monday, Jan 11 the rights issue, while enabling it to repay the loan, would enable it to achieve a more robust capital structure.

"In addition to reducing debt, the proposed rights issue will also increase the UEM Land's shareholders' funds, which would improve its gearing level. In this respect, the group is also expected to be better-positioned to obtain debt funding for its future business development and expansion activities," it said.

UEM Land the corporate exercise would enable it to raise funds (without incurring interest costs) to part finance the Cyberjaya land acquisition and for property development expenditure, payment of outstanding trade payables and general working capital purposes which are expected to contribute positively to the future profitability and/or cashflow position of the group.

"In addition, the Cyberjaya land acquisition is expected to provide further diversification of the UEM Land group's future earnings," it said.

UEM Land said as compared to a private placement of new equity securities in UEM Land, the proposed rights issue would allow all of UEM Land's shareholders to participate in an equity offering on a pro-rata basis to avoid dilution of interest and to acquire new shares at a discount to prevailing market prices.

It said UEM Group Bhd, a major shareholder of UEM Land, would subscribe in full its entitlement under the rights issue. As at Dec 31, 2009, UEM Group holds directly 1.87 billion UEM Land shares or 77.14%. Under the exercise, UEM Group’s minimum subscription amount will be about RM748.2 million.

By The EDGE Malaysia (by Joseph Chin)

Beijing vows to keep 'hot money' out of property market

BEIJING: China vowed yesterday not to let foreign speculative investment affect the property market, the latest expression of official concern that real-estate prices are racing ahead too fast.

The directive from the State Council, China's Cabinet, will serve as a guideline for local authorities and ministries, including the People's Bank of China and the China Banking Regulatory Commission, to work out detailed policies.

"Relevant departments must enhance monitoring of loans and cross-border investment to prevent illegal inflows of capital into the property market and to avoid the impact of overseas hot money on China's real-estate market," the Cabinet said.

It said the central bank and banking regulator should step up oversight and "window guidance" of mortgage lending.
About one-sixth of China's nearly 10 trillion yuan (100 yuan = RM49.48) in new loans last year flowed into the property sector.

Concerned that a property bubble could stir social and economic instability, Beijing has vowed to combat overly fast price increases, although its moves to date, such as restricting sales tax exemptions, have been relatively mild.

The Cabinet urged local authorities, especially in cities where housing prices are rising sharply, to increase the supply of affordable housing.

It reiterated that it would curb house buying for "investment and speculation purposes" and keep the minimum down payment for purchases of second homes at 40 per cent.

Separately, China's finance minister said the government would likely spend the full amount of its planned stimulus in 2010, despite improvements in its economy and efforts to control bank lending.

Finance Minister Xie Xuren's comments could help to reassure companies and investors that Beijing will keep spending to shore up growth.

Xie said Beijing plans to spend 992.7 billion yuan on public investment in 2010, Xinhua News Agency reported, including 572.2 billion yuan of stimulus funds.

The state-run news agency gave no indication whether Xie's comments included whether the rest of the stimulus due to come from other levels of government also would be fully spent.

Xie's comments add to a string of assurances that official aid will continue, especially to private companies, which missed out on the first year of the stimulus. - Agencies

By Business Times

S.Korea announces multi-billion dollar plan for new city

South Korea's government Monday announced a 14.6 billion dollar blueprint to develop a new city as a science and education hub, dropping controversial plans to move several ministries there.

The country's biggest business group Samsung has signed a deal to move some operations to Sejong City, along with the Hanwha, Woongjin and Lotte groups, said Prime Minister Chung Un-Chan.

Monday's announcement officially scraps a plan announced in 2005 by then-President Roh Moo-Hyun to relocate nine ministries and four subsidiary agencies to the city 150 kilometres (94 miles) south of Seoul.

Roh's liberal government said the aim was to promote balanced regional development in a country where almost half the population lives in Seoul or surrounding cities.

The plan was also attractive to the Chungcheong region, whose traditionally uncommitted voters have often swung elections.

But the current conservative government decided not to go ahead with it, despite strong opposition within the ruling Grand National Party.

Chung's office said in a statement the previous plan "would have resulted in inefficiency and waste" of national resources.

"The government has decided to create an economic hub centred on education and science in Sejong City with public and private investments of 16.5 trillion won (14.6 billion dollars) in total," Chung said in a statement.

"We expect Sejong will grow into a self-sufficient city with a population of 500,000 with 246,000 new jobs by 2020."

The city is named after the revered 15th century monarch who invented the country's written alphabet.

By AFP

Sunway Vivaldi gets green mark cert

SUNWAY Vivaldi of Sunway City Bhd has received the coveted green mark certification from Singapore's Building and Construction Authority (BCA).

The BCA green mark was introduced in January 2005 as a key strategic programme to raise the awareness of sustainable and environmentally friendly buildings.

The benefits of a green mark building include the cost of savings from efficient use of key resources such as energy and water, leading to lower operation and maintenance costs.

"Excellence in green buildings is a commitment of the company.We are very happy that this has been recognised by the Singapore BCA," said Suncity property development division managing director, Ngian Siew Siong.

By Bernama

Promising outlook for landed properties

The residential property market should see a pick-up this year if buying interest remains sustainable and developers offer more creative and well planned projects.

Take-up rates have gradually picked up since the first quarter of 2009 and by the second quarter, newly launched properties recorded take-up of 31.7% – the highest over the past three years.

The strong take-up is especially evident for landed properties, including super-link terrace houses, semi-detached houses and bungalows, which cater to the upper-middle class.

Prices are also expected to rise in tandem with the economic rebound and landed residences have generally seen price increases of between 10%-15% to RM250 to RM300 per sq ft. While the high-end condominium market is still bleak because of an over supply situation, the outlook for landed residences in premium locations is much brighter.

Tan Sri Liew Kee Sin (left)... 'Developers will have to plan their launches carefully and understand market needs if they expect good take-up rates.'

Tan Sri Leong Hoy Kum (right) ... 'Residential properties that cater to the middle to upper middle market stand to benefit from the rebound in property demand.'

Developers are more confident of rolling out new projects this year to capitalise on the buoyant sentiment among property buyers.

Mah Sing Group Bhd group chief executive Tan Sri Leong Hoy Kum says with the brighter economic outlook, more Malaysians will be willing to spend on big-ticket items like property.

“We believe this will lead to a strong demand recovery in mid-tier to high-end landed properties,” Leong says, adding that these segments should rake in stronger sales.

He says residential properties that cater to the middle to upper middle market stand to benefit from the rebound in property demand.

GuocoLand Bhd director of marketing and sales KC Chong concurs that landed properties, particularly gated enclaves in good locations, command a strong following.

“They appeal to both owner-occupiers, as well as investors as there is a willing pool of tenants which prefer landed properties complete with security, management and common facilities.”

The “feel good” factor may lead many to upgrade this year, given the (still) relatively favourable financing schemes available, he says.


However, Chong cautions that given the likely increase in launches expected this year, developers will have to work hard to achieve their targets.

SP Setia Bhd president and chief executive officer Tan Sri Liew Kee Sin says developers will have to plan their launches carefully and understand market needs if they expect good take-up rates.

“Many developers today are selling an aspirational lifestyle rather than just a house. Innovative ideas and designs are important factors in selling properties today coupled with a strong brand name,” Liew notes.

ECM Libra analyst Bernard Ching says more positive consumer sentiment and current low mortgage rates will sustain demand for residential properties going forward.

“Based on historical data, we see a strong correlation between consumer sentiment index (CSI) and demand for residential properties. Since hitting a low of 70.5 in the second quarter of 2008, the CSI has rebounded above the 100-point neutral level since the second quarter of last year,” he says.

Ching says the Government’s decision to impose a 5% real property gains tax (RPGT) only on property sales within the first five years of purchase instead of a blanket tax irrespective of date of purchase (as announced under Budget 2010) will boost buying interest.

“This is certainly a positive measure that will provide a much needed relief to the property sector. With the relaxation of the RPGT, we believe buying interest will pick up pace, especially among upgraders who need to sell their existing properties first,” he adds.


Source : CEIC

He says another catalyst for the property sector will be the impending announcement by the Government to allow Employees Provident Fund contributors to utilise their current and future savings in Account 2 for property purchases.

“This is likely to boost housing affordability, especially among first time home buyers, and benefit the mass residential segment,” he notes.

According to DBS Group Research Equity analyst Yee Mei Hui, a strong appetite for upper mid-high end properties has seen recent launches breaching 70% take-up within the first weekend.

“Developers are increasingly confident and have set higher sales targets, bringing forward launches and replenishing their landbank. Demand is expected to pick up further on the back of an improving economic outlook,” she says.

Yee adds that given the threat of rising inflation caused by higher mortgage rates and the impending introduction of the goods and services tax, more Malaysians are also buying property as a hedge against inflation.

By The Star (by Angie Ng)

Taman Seputeh gets another boost

When Liew Tze Yong left for Australia several years ago, those in the property circle thought they would be seeing the last of him.

After all, he made his name with Gita Bayu, one of Malaysia’s first gated and guarded lifestyle developments. After that successful partnership with world-renowned resort designers Lek Bunnag and Bill Bensley, he was ready to sit back, relax and enjoy time with the family. Being a DIY man, there would be lots around the house to keep him busy.

So when word got around that he was doing another gated and guarded project, this time in Taman Seputeh, Kuala Lumpur, his contemporaries sat up.

Liew, who is managing director of Planet Uno Sdn Bhd, has a tendency to set new benchmarks and go into uncharted terrain, literally and figuratively.

Gita Bayu is testament to that. Located in Seri Kembangan, Selangor, Gita Bayu was a forest and Liew created a location when there was none to speak of.

He turned that piece of land into a renowed green development, where houses are built around existing trees and the terrain preserved as much as possible to retain its original flavour and ambience. Today prices have risen to about RM170 per sq ft from RM40per sq ft.

Now that he has a good location – and Taman Seputeh is rather exclusive – developers are waiting to see what he is going to do. Liew, an architect by training, is excited about the work ahead of him.

“I’m not only going to build for my buyers, but my family members as well. I am going to set new benchmarks,” he says.

Taman Seputeh is located between Petaling Jaya and Kuala Lumpur off the Federal Highway. Quiet and neatly tucked away in a rather green location, it holds a lot of promise. In terms of amenities, there is the Mid-Valley Megamall and the established Jalan Klang Lama with its commercial hub.

Penang’s Hunza Properties Bhd has developed 15 acres comprising 80 units of semi-detached and 13 bungalow units in Taman Seputeh. Hunza has seven unsold bungalow units, launched about two months ago, at between RM500 and RM600 per sq ft. They bought the land from Liew’s family some years ago. The Berjaya group is selling land in Seputeh Heights for bungalow development at about RM400 per sq ft. Completed bungalows are at RM1,000 per sq ft depending on location and size and other details.

Liew has priced his units between RM700 to RM800 per sq ft with prices ranging from RM4.08mil to RM6.8mil.

What is interesting is that this will be a family project. Liew has always been passionate about houses and the external environment. But over and above that, he is also very detailed in his delivery.

“It will not be as fantastic as Gita Bayu but Seputeh Gardens will be different from most housing estates,” he promises.

The trees have been cleared but he has retained the contours of the land. Each of the 42 units will be located about a meter higher than the next and the houses set up to avoid a barrack-style straight line.

“There is the cascading effect because of the land contours. Because the houses are not build in a straight line but are instead set back considerably one from the other, there is the effect of a widening horizon when you drive up the road,” he says.

Liew’s Australian break has also taught him further about the use of trees and he has handpicked the specie and colour he wants. Located on nine acres, there will be 42 bungalow units with lap pools. The front portion will be two-storeyed, the back three-storeyed. All the roads with be tree-lined with species chosen by Liew himself.

Golden Shower for the entrance, Yellow and Red Flame for different parts of the development. Other species include Hopea Odorata, a medium-sized to large evergreen tree with a large crown growing to 45 m, bole straight with cylindrical, branchless, Bauhinia, a large flowering plant commonly known in the tropics as “orchid trees” because of its large mauve showy flowers, among others.

“The colours and variation you see in the show model will become reality when the project is completed. Life is rejuvenated by different seasons. I am using different species with their varying colours to denote the evolving times of the year.

“There are flowering trees which bloom abundantly at different times of the year in Malaysia although the seasons are not so clear cut in the tropics,” says Liew.

The overall development comprises two rows of bungalows of about 10 bungalows each and a cluster of about 20 of them with land sizes varying between 4,520 sq ft to more than 8,000 sq ft. Built-up ranges from 6,000 sq ft to 8,000 sq ft. There will be a green reserve within the development which does not belong to the family but forms part of a golf course.

Liew will be using that as a buffer. Hopefully, that stretch of land continues to be a green reserve in years to come.

Liew is very conscious about security and he says a good part of the project is adjacent to the Malaysian air force. He says that will be an advantage. Each of the 42 units come with six bedrooms including the maid’s, all with attached baths and fully fitted. But it is the first 25 buyers who have really got a bonus. That early bird package comes with extras worth more than RM300,000. He has already sold that first 25 units.

By The Star (by Thean Lee Cheng)

Fundamentals key in sustaining property sector

It’s a new year and many folks would be wishing for a speedy recovery of the global and national economy to promote greater wealth and job creation for the people.

It has been a dizzying past two years and many lessons that can be learned from the challenges that have unfolded – the latest being Dubai.

The tiny Gulf emirate, hailed as a major economic phenomenon, plunged into severe debt woes causing its real estate market to collapse after a six-year boom.

Thousands of jobs were slashed and projects worth billions of dollars were cancelled or delayed.

The local property sector should take cue from Dubai’s debacle to ensure that our market’s sustainability and stability is based on industry fundamentals.

Only when property markets are driven by real demand from buyers can its growth be sustainable in the long term. Speculative activities should be curbed as it will artificially boost property prices.

The collapse of Dubai’s property market also shows the danger of an over-dependence on foreign buyers.

Many corporations with projects in Dubai, such as Malaysia’s LCL Corp Bhd, are still struggling to recoup their outstanding bills from their Middle Eastern customers and are in serious cash flow problems.

The bubble burst because the phenomenal rise in Dubai’s property prices and building frenzy of mammoth skycrapers were not supported by real demand but speculative buying.

The speed of Dubai’s collapse after it went into debt problems drives home the point that it is important to balance the market between owner occupiers and investment buying activities.

So far, Malaysia has been lucky as its market is driven by fundamentals and sustained by strong local demand. Foreign buying only accounts for 10% of transactions.

Property prices have also been pretty stable in the last two years.

The country’s relatively young population, with close to 50% aged below 21 years, bodes well for a stable and balanced property market driven by first time buyers.

Reinstating the real property gains tax on gains made from property sales within the first five years of purchase is a move in the right direction to curb over speculation in the market.

Property buyers seeking fast gains should rightly be taxed.

More proactive measures should be initiated to promote property demand as it will create spillover effects in other economic sectors.

It is not an exaggeration to say that property is one of the best investment assets right now and the onus is on developers to strut their best stuff to attract buyers.

·Deputy news editor Angie Ng wishes to see more Malaysians benefiting from the high income economy initiatives and living in wholesome neighbourhoods.

By The Star (by Angie Ng)

Ho Hup stakeholder may sell land to fund future projects

HO HUP Construction Co Bhd may sell part of its land in Bukit Jalil, Kuala Lumpur, if the funds raised from an alternative revamp plan is not enough to finance its developments, said Datuk Low Tuck Choy.

Low is the second biggest shareholder of Ho Hup and is trying to block an existing restructuring plan, which involves a 95 per cent capital reduction.

His alternative plan involves raising RM25.5 million from the issue of a renounceable one-for-four rights issue of 25.5 million irredeemable convertible preference shares (ICPS) priced at RM1 each with two free warrants for each ICPS subscribed.

The money will probably be used to kickstart its RM2 billion Jalil City mixed-development project. But there were concerns that it may not be enough.

"We will sell more land in Bukit Jalil if we need cash in the future to fund our activities," Low told Business Times yesterday.

Low said his aim is to strengthen the financially-troubled company, which has been in the red since 2006.

In fiscal 2008, its net loss was RM56.2 million.

Ho Hup was the ninth biggest gainer on Bursa Malaysia yesterday following news of the alternative revamp proposal.

The stock rose 17 sen to close at RM1.44, with 27 million shares traded.

Low plans to replace the existing directors as he felt they were not acting in the best interest of shareholders. He argues that the sale of two plots of land in Balakong and Bukit Jalil for RM7.2 million or RM30 per sq ft and RM5.7 million or RM50 psf, respectively, was below market value.

Low plans to remove Ho Hup deputy chairman Datuk Vincent Lye Ek Seang, the company's largest shareholder with a 28 per cent stake via Extreme System Sdn Bhd, group managing director Lim Ching Choy and five other directors.

"I will wait to see what happens at the special meeting on February 4," Low said.

Meanwhile, Lim declined to comment on the alternative revamp plan.

Lim, who joined Ho Hup on June 1 2009, is spearheading Ho Hup's corporate restructuring to reduce debt, inject new capital, sell non-core assets and generate revenue to become profitable.

"We are in line with what the authorities want," Lim said.

Ho Hup has proposed a 95 per cent capital reduction and a new share-placement exercise that will see new investors owning 59.5 per cent of the company, beefing up its capital base.

The money will be used to develop Jalil City.

According to the plan, Ho Hup is expected to get approvals from the authorities by March and be removed from PN17 by June.

By Business Times (by Sharen Kaur)

Speculative property buying under control

PETALING JAYA: Excessive speculative buying of properties due to the availability of various flexible home loan packages is not a major concern in Malaysia, industry players and analysts said.

“Given that many of the buyers were first-time home owners or upgraders, the company was not overly concerned about speculative buying,” SP Setia Bhd chief executive officer Tan Sri Liew Kee Sin told StarBiz.

He was referring to the developer’s Setia 5/95 home loan package which ended in July last year.

“The group believed that there were still buyers out there who were holding back then due to the excessive negativity caused by the financial meltdown in early 2009,” he said.

The 5/95 scheme is where a buyer makes a 5% downpayment and signs the sale and purchase agreement.

Loans need to be secured but the servicing only starts when the property is ready.

The 10/90 property financing scheme is where a buyer pays 10% deposit with the mortgage repayment starting only upon completion of the property.

On top of these two schemes, some developers also offer deferred mortgage payment package for one to two years.

There are concerns that excessive speculative home buying will result in the “supply” coming back to flood the market if house prices start to come down, and affect sales of new houses coming into the market.

A property analyst with a local research house said speculation in properties was not excessive in Malaysia now.

“It is because somehow we do not attract foreign investors that much although our property prices are cheaper than in some other countries in Asia,” she said.

She added that speculative buying was more apparent in Singapore and Hong Kong.

The analyst noted that even when the 5/95 property financing scheme was introduced early last year, the property index only increased by 3% for the first half of 2009.

“Speculative buying in Malaysia depends on the location and market segment.

“Property investments here are usually slanted towards the high-end segment,” she said.

PPC International Sdn Bhd executive director said Thiruselvam Arumugam said the real property gains tax (RPGT) of 5%, implemented on Jan 1, would help to mitigate speculative buying of properties.

“The RPGT forms some sort of control for speculative buyers.

“It promotes healthy increase in property prices compared with ‘artificial’ increase due to speculative factors,” he said.

By The Star (by By SHARIDAN M. ALI)