CNY home financing packages

PROPERTY developer Sunway City Bhd (SunCity) has teamed up with Malayan Banking Bhd (Maybank) to offer home buyers with special financing packages for its various residential property developments.

In a statement issued yesterday, SunCity said it is offering the double celebration double bonanza package. Via this package, buyers can enjoy the "pay half, pay less, pay later scheme with 95 per cent loan", in conjunction with the Chinese New Year (CNY) festival.

This package is applicable to Casa Kiara condominiums in Mont Kiara, Kuala Lumpur, Sunway Alam Suria two-storey cluster homes in Shah Alam, Selangor, Sunway Opal Damansara condominiums at Sunway Damansara, Sunway Merica three-storey terrace homes in Sungai Ara, Penang, and Garden Villa two-storey linkhouses in Ipoh, Perak.

SunCity will also offer a package for selected projects, where buyers pay a fifth of the 10 per cent downpayment with no payment during construction and only a fifth of the monthly installment of up to 24 months after completion.
This package is applicable to Sunway Vivaldi condominiums in Mont Kiara, Bayrocks Garden Waterfornt Villas at Sunway South Quay and Villa Manja at Sunway SPK Damansara.

By Business Times

One Asia Property sees brisk sales for Penang's 'Asia Hills'

ONE Asia Property Group, the exclusive marketing agent for the RM72 million "Asia Hills" bungalow project in Bayan Baru, Penang, expects that all 50 units on offer would be snapped up by the first quarter of this year.

Its confidence stems from the shortage of landed property projects on the island.



"Developers are now returning to high-rise development projects since it is no longer viable to build landed properties in prime locations where land prices have increased by 50 per cent over the past few years," One Asia Property Group's chief operating officer Lim Ewe Tatt told Business Times.

He cited a plan by the state authorities to raise the density for property developments in certain parts of Penang as one likely reasons that there will be a decreasing supply of landed properties on the island.
Ahead of its launch today, a total of 32 Asia Hills bungalow units have been sold.

The units, which are priced from RM1.5 million to RM2.2 million each, are sprawled over 2.24ha along the upmarket Bukit Jambul residential enclave.

Lim said 80 per cent of the buyers live in Penang and the remaining 20 per cent are Penangites now residing overseas.

"The locals are made up of industrialists and businessmen who work in the Bayan Lepas area or in Seberang Prai," he added.

The gated Asia Hills project is located near the Penang International Airport and Penang Bridge.

Among the features of the development are a cascading waterfall into a swimming pool, concrete imprinted roadways, round-the-clock community closed circuit television monitoring and a guardhouse at its entrance.

On how RM1 million properties such as Asia Hills remain sellable to investors, Lim said: "A project of this nature would have appeal to those wanting to upgrade their property investments."

"Those who bought their properties for RM400,000 have probably seen their units appreciate and are now worth between RM600,000 and RM700,000, so they simply need to top up on their new purchases."

Since its inception last year, One Asia Property Group in Penang has been involved in marketing three property developments.

Early this year, the company represented a public-listed property developer in selling off en-bloc retail units worth RM40 million.

By Business Times

SP Setia best property developer in JB

SP Setia Bhd (SPSB) remains the leading property developer in Johor Baru, followed by KSL Holding and the Mah Sing Group, said MIDF Research House.

However, local Johorean developers are still important, given their present strategic landbank holdings, it said.

MIDF also said Johor contributes up to 50 per cent of SPSB's revenue.

"The development of SP Setia's high-end products with higher profit margins, especially its Setia Tropika and township development of Setia Eco Park, will continue to be its major earnings contributor," it said in its research note today.

Apart from the location and well-placed infrastructure, the premium pricing by SPSB is justified with the inclusion of new features such as lifestyle amenities, reflection ponds and a central gated system.

By remaining the southern region market leader, MIDF reaffirms its "neutral" call for SPSB with an unchanged target price of RM3.00.

By Bernama

Developers optimistic on 2010 outlook

GEORGE TOWN: Property developers are optimistic that there will be growth in the local sector despite the cooling off of the broader regional market.

This is based on the Government’s projection of a 3.2% gross domestic product (GDP) growth this year, the brisk sales of high-end properties in Kuala Lumpur and Penang in 2009 and the fact that prices of Malaysian properties are still affordable to investors.

Real Estate and Housing Developers Association (Penang) chairman Datuk Jerry Chan said the prices of Malaysian homes, having appreciated 5% to 10% annually, was still affordable.

“The prices, with room to appreciate further, are still attractive to foreign buyers wanting affordable holiday homes and those with the disposable income to upgrade their properties,” he said.

Chan said given the high cost of land in Penang and the increase in building material prices, property values in the state were likely to rise by 5% to 10% this year.

“To build a 1,000-sq-ft apartment on the island will cost RM350,000 to RM380,000, taking into consideration the land and construction costs.

“This means a 1,000-sq-ft apartment will have to be priced close to RM500,000 to generate profit,” he said.

Meanwhile, IJM Land Bhd managing director Datuk Soam Heng Choon expects the recovery of the local property sector in the second half of 2009 to resume into 2010.

“There is a lot of optimism among local investors as the stock market is on the rebound and good liquidity in the market augurs well for the property sector.

“The take-up rate should remain steady with more first-time homebuyers coming into the market while the demand for high-end properties should be good with a ready pool of upgraders and investors.

“Prices should remain stable with reasonable appreciation, given that speculative buying is well under control,” he said.

Mah Sing Holdings Bhd deputy chief operating officer Teh Heng Chong said landed property prices in prime locations in Penang, Klang Valley and Johor Baru would still hold up this year.

Teh said the demand for properties in such locations would come from those with the buying power who preferred homes in a secured environment.

“That is why our recent previews of high-end projects, such as the RM209mil Perdana Residence 2 in Selayang and RM690mil Garden Residence in Cyberjaya, attracted large crowds,” he said.

Perdana Residence 2 and Garden Residence Resort Homes are both super-linked houses priced from RM828,000 and RM738,800 respectively.

“For Perdana Residence, we have potential buyers indicating they will take up 162 units while for Garden Residence Resort Homes, there are people expressing interest to buy 200 units,” he added.

Teh said the group’s main property launches in the Klang Valley this year would be iParc in Bukit Jelutong, Garden Villas in Hijauan Residence, Garden Residence in Cyberjaya, and Perdana Residence 2 in Selayang.

Mah Sing also plans to launch more phases this year in its existing projects like Hijauan Residence in Cheras, Aman Perdana in Meru-Shah Alam, StarParc Point in Setapak, as well as Sri Pulai Perdana and Sierra Perdana in Johor Baru.

SP Setia Bhd property division (north) general manager S. Rajoo said there was still room for property prices in the country to appreciate, unlike in some other neighbouring countries where prices had stagnated.

“The drivers of property demand in the country comes from first-time buyers, those who can afford to upgrade their lifestyle, and investors from Indonesia and Singapore.

“And with land scarcity being a concern on Penang island, buyers would generally jump at the chance of owning a property in the location of their choice,” Rajoo said.

Eastern & Oriental Bhd executive director Eric Chan Kok Leong said the local property sector looked promising this year, with demand expected to pick up.

He said the recovering economy was projected to improve the overall market sentiment, boosted by the attractive mortgage rates which were expected to remain accommodative, given the ample liquidity in the banking system.

“From a broader perspective, investors, anticipating inflation to follow the economic recovery, may decide to hedge their positions by investing in property.

“For us, we have seen a steady take up for our properties as 2009 drew to a close and we are confident of a better performance this year,” he said.

By The Star

New wave of development at Mines Resort

A new wave of development is set to take place at Mines Resort City, the country's first resort development, located at Seri Kembangan, Selangor.

Country Heights Holdings Bhd (CHHB), the project developer controlled by Tan Sri Lee Kim Yew wants to develop serviced residences and an area for entertainment, featuring bars, restaurants and cafes for over RM500 million.



According to Golden Horses Development Bhd executive director Dianna Lee, the 600ha Mines, which is 90 per cent developed, has pockets of land for new products.

"We are looking at entertainment-related businesses in particular. Since we are not in that field, we will call on operators whom we think would be keen to set up shop there. We want to generate new income for CHHB," she told Business Times in an interview recently.

Once the world's largest open- cast tin mine, the government had in March 1988 alienated the land to CHHB, in which Lee owns a 48.1 per cent stake, for RM50 million, for recreational and tourist-related developments.

The Mines is now home to Palace of the Golden Horses, Mines Wellness Hotel, which is the city's only beach resort, Mines Waterfront Business Park, Mines Exhibition and Convention Centre with a capacity for up to 15,000 people, Mines Wonderland, Mines Resort and Golf Club, and Mines Shopping Fair (now owned by CapitaLand).

Other properties include Mines2, which is an ongoing development by CHHB featuring office buildings and a shopping mall, and The Heritage, a project by Clearwater Group.

Clearwater is controlled by Dian Lee, the eldest daughter of the senior Lee. It is constructing five blocks of serviced residences, semi-detached homes and bungalows.

Meanwhile, Lee said the Mines Waterfront Business Park, which has four towers, is undergoing an expansion to add four new blocks for more than RM150 million.

"The four blocks are fully tenanted and we have enquiries from other companies who want to operate from here. So we are quite confident the take-up for the new buildings will be good," she added.

The existing four blocks are being leased at RM6.60 per sq ft.

By Business Times

Sime Darby Property mulls RM2b property trust

Sime Darby Property Bhd, the property arm of Sime Darby Bhd, is building its investment portfolio as it mulls setting up a property trust with assets worth more than RM2 billion, in two to three years.

It also wants to grow its rental income, which now contributes some 10 per cent to its bottom line, group managing director Datuk Tengku Putra Badlishah said.



"Property development is very cyclical while asset management provides regular income and we want to grow that.

"We have assets that give us good rental but more is better. We are building three towers in Ara Damansara and have a few more coming up in the Klang Valley," Tengku Putra Badlishah said.

With an interview with Business Times recently, Tengku Putra Badlishah said the company has several assets suitable for a real estate investment trust (REIT).
"We have reached there as far as a REIT is concerned but we want to set a target. We will launch the REIT if we think it makes sense to do one. For now, we don't require any fund raising," he said.

Sime Property may buy or build new properties in Malaysia, Australia, China, Indonesia and Vietnam. It will ride on the success of its parent which operates in over 20 countries.

Sime Property's assets, including its 14,800ha of land in the greater Klang Valley, are worth RM4 billion.

The company has several wholly-owned assets under management. They include Sime Darby Pavilion, Kompleks Sime Darby and Wisma Guthrie in the Klang Valley, as well as Performance Centre, Sime Darby Centre, Sime Darby Enterprise and Vantage Automotive Centre in Singapore.

Its hospitality assets are Sime Darby Convention Centre and Genting View Resort in Malaysia, Darby Park Executive Suite in Singapore, Randong Orange Court in Vietnam, as well as three resorts in Australia which are Quest Margaret River, Quest Subiaco and Karri Valley.

Sime Property's award-winning leisure properties include the Kuala Lumpur Golf & Country Club and Impian Golf & Country Club in Kajang.

"All these properties are doing well with most of them yiel-ding an average 7 to 8 per cent," Tengku Putra Badlishah said.

By Business Times

Challenging times for condominium segment

There is an oft-quoted line: what goes up, must come down. With the anticipated recovery in the property sector, the focus now turns to the condominium market. Over the last decade or so, this segment has increasingly become a very big sub-segment of the property market.

The overall perception today is that there is a general oversupply of condominiums and serviced apartments. Because of this overhang of more than 90%, the market is expected to be rather challenging this year.



According to the National Property Information Centre (Napic), in the last 24 months the oversupply exceeded 90% for both the luxury and non-luxury category. This is significant when compared with other sub-segments of the property market, namely detached units (zero overhang), semi-detached (1%) and terraced housing (3%).

Henry Butcher Marketing Sdn Bhd chief operating officer Tang Chee Meng says if one were to look at the stock of residential properties coming onstream, the bulk in Penang, Selangor and Kuala Lumpur are condominiums. Because land is scarce, developers are trying to maximise land use.

In a recent talk on the luxury condominium market, he says his main concern is the oversupply in KLCC and Mont’Kiara. Tang is focusing on the luxury segment of RM700 per sq ft and above.

He says there are difficulties in renting out the larger units because there is a scarcity of expatriates.

The number of skilled, trained and professional foreigners entering the country has been dwindling since early last year. Although the situation may reverse, for the next year or so this seems unlikely.

There are other issues haunting this segment. The recent return of the real property gains tax (RPGT) and a possible future increases have also resulted in wary resignation.

Incidentally, sales of luxury condominiums were boosted by the suspension of RPGT in 2006. Besides the RPGT, the possible rise in interest rate is another cause for potential buyers to be more circumspect.


Investment options

At the global level, the weak and uncertain economic situation has also lowered the level of interest among foreign investors.

“There are more attractive investment options offered by overseas properties where prices have dropped more significantly and currency exchange rates have become more favourable,” says Tang.

He says although some have reported that up to 40% of their units have been sold to foreigners, the percentage of Malaysia’s properties bought by professional foreigners is actually less than 3%, taking into consideration the middle and high-end category.

“Some of them have been living here for many years. They are not speculators or investors. We are not seeing foreign investors coming back in a big way. Most of the buying is done by locals at the moment and they go for smaller units so the large units are difficult to sell. They also prefer to buy units that come with tenants,” he says.

He says the completion of several new projects in the KLCC area has also put further pressure on occupancy and rental rates.

There are luxury condominiums in other locations like Bangsar, U-Thant and Damansara Heights but they do not boast such massive numbers. Tang, therefore, expects the market in Bangsar and Damansara Heights to recover fast.

Giving an overall picture of the situation around the KLCC and Mont’Kiara area, Elvin Fernandez, managing director of Khong & Jaafar group of companies, says the KLCC and Mont’Kiara condo market is high-end that appeals to modern singles or households that prefer city centre living that one may buy to stay or to invest in. City centre living is a growing long-term trend as opposed to the suburban living. Notwithstanding that broad trend, the micro factors insofar as Kuala Lumpur’s high-end condo is concerned, the financial crisis has rocked this market quite a bit.

“Although many believe the global crisis is behind us, equally as many believe the issues and problems that caused and came with the crisis will continue to impact us as we go forward.


“City centre condos are presently pressured by low rental yields of below 5% net. That is not sufficiently attractive as it ought to be more than 5% to commensurate with long term and sustainable risks in the hierarchy of risks within and outside the property market,” he says.

Suburban condominiums, on the other hand, are higher density substitutes for landed properties.

Landed properties are preferred and the low initial net yields reflect this, but with the scarcity of land in suburban areas, particularly just outside the city centre areas, higher density housing is an increasingly acceptable substitute.

The pricing and returns of suburban condos will follow the substitute landed except that a slightly higher risk will prevail and this will translate to a higher expected net yield.Higher yield also means a lower unit value.

While net yields for landed houses in prime locations may be 2% to 3% net at present (they ought to be moving to higher numbers going forward) the long-term sustainable net yield for suburban condos should rightly be about 6% net and above.

Change in conditions

Taking the cue from the current market conditions, over at Mont’Kiara, Sunrise Bhd being the biggest player there, says it will not be giving emphasis to large units of 2,000 sq ft and above.

Incidentally, these two locations – KLCC and Mont’Kiara – have come under scrutiny because of their sheer numbers which go into several thousands.

Says Sunrise executive chairman Tong Kooi Ong: “The profile of the Mont’Kiara resident has changed. The old strategy of selling to Malaysians and renting to a professional foreigner worked many years ago. It will be a sunset industry if we follow this strategy today and this is obvious if you look carefully at the tenancy market.”

“There is a shift in the expatriate population and this will affect the property market. The average occupancy is 75% in Mont’Kiara. Now it takes about two years to fill a condo; last time, we could have filled it up faster. Our buyers have become residents themselves. If you cannot get RM15K a month, why buy a RM3mil unit? The guy who buys a RM3mil unit is not renting it. He is buying to stay,” he adds.

At its peak, owners have reported exuberant yields of double-digit with 9% being on the conservative side. Today, the yield has dropped to about 5%.

Known as a one-product, one-location developer, Tong says the company will be going into different locations offering different projects from now on. It recently signed a joint venture with the Sime Darby group to go into commercial development in Bukit Jelutong, Shah Alam. The company has secured more than 50% bookings, valued at about RM500mil, when it launched condominium project MK 28 in December last year. The average selling price of RM785 psf was also higher than expected. Tong says the company will continue to develop MK 20 and 22, both condominiums, in that area later on.

S. K. Brothers Realty (M) Sdn Bhd general manager Chan Ai Cheng says Mont’Kiara is very developed. The appeal here is the international schools. In light of the number of completed projects of late, she is aware of unit owners in certain projects there who are facing challenges in securing tenants and had to reduce rentals after the units remained untenanted for close to a year.

“Generally, it would seem like supply outweighing demand. However, not all units are facing the same challenge,” she says.

The U-Thant area will have its niche appeal and following while KLCC properties will tend to be more speculative as they attract not only locals but foreigners as well, although, for the time being, the foreign market has dried up.

On the other hand, the Petaling Jaya condominium market appeals more to locals and this will continue to be mainly a family-based, owner-occupier market.

“PJ properties are seen to be resilient because of strong local demand. Some projects are thriving and are in hot demand while places like Pavillion Residences keep raising prices. Selected established condominiums like Hampshire Residence remain well occupied,” she says.

The Selangor Dredging group, which recently launched the second phase of Five Stones, has an overall take-up rate of 66% for the 192 units in Block D and E. Over at Damansara Perdana, if there is no issue with leasehold, Chan says it is possible to get units at attractive prices and there are many options to choose from. As more projects enter the market, developers will have to keep improving. We are already seeing this in Ara Hills, by Sime UEP group, which have provided a high-voltage perimeter fencing as an added safety feature, she says.

By The Star (by Thean Lee Cheng)

Super-niche projects still drawing buyers

An indoor shot of the living room area at Zephyr Point on Basong

The local high-end residential property segment seems to be making quite a comeback, with developers eagerly launching their projects and some already raking in quick sales.

Last month, Urban Hallmark Properties Sdn Bhd (UHP) previewed its Zephyr Point on Basong in Damansara Heights, a niche high-end residential development comprising just seven units – three penthouses and four villas.

The three-level villas have built-ups ranging from 8,000 sq ft to 10,000 sq ft while the three penthouses sized from 10,000 sq ft to 12,000 sq ft are spread on a single level.

The project is expected to be launched between April and May, with the final purchase price of the homes to be determined then. However, with an indicative pricing of RM1,200 psf, each unit is expected to fetch a cool RM10mil onwards.

UHP managing director Datuk Jeffrey Ng says as the company was targeting high net worth individuals and corporations, price would not be an issue.

“The main issue here is whether they perceive the purchase is a value buy at this point in time and whether they are convinced that the property will enjoy capital appreciation in the future.

“Undoubtedly there will be demand for the super high end properties due to scarcity in prime residential locations,” he tells StarBizWeek in an e-mail.

Ng says the high net individuals it was targeting comprised local upper class Malaysian buyers from surrounding locations or even expatriates.

“When comparing the pricing of properties within the same region such as Singapore, Hong Kong, Bangkok and Jakarta, property prices in Malaysia are still considered very cheap and provides a good investment opportunity.”

Ng says UHP was also in the process of appointing foreign real estate consultants to target our local expats who plan to return to Malaysia soon.

On how quickly he expects the homes to be taken up, Ng says: “We would expect the properties to be sold at a conservative pace given the price point and the profile of buyers targeted.”

The Zephyr Point homes come with low emission laminated/ tempered glazing glass (for areas facing west only); the use of heavy duty commercial grade aluminium windows and full height sliding doors; salt water infinity pool; salt water spas (in the Villas) and a fully equipped gymnasium.

The homes are also wi-fi ready, have fully ducted air-conditioning and come with a private lock-up garage as well as a drivers waiting lounge. Each unit comes with a private home office sized between 300 sq ft and 500 sq ft, located on a special dedicated floor known as Breezeway. The Breezeway also hosts the residents’ function lounge and entertainment foyer, overlooking a fully equipped gym and infinity pool.

Given the super high price of the homes, one still has to beg the question as to whether people will still buy – given that the world is still recovering from a global economic turmoil.

Ho Chin Soon Research Sdn Bhd director Ho Chin Soon says there would always be purchasers for super-niche projects.

“There are always people that can still buy and given that there are so few units (at Zephyr Point), the developer will already have the people (buyers) in mind.”

Ho says it was more than likely that the purchasers would buy the properties for themselves rather than rent them out.

“At RM10mil, you can imagine the cost of rent. Who’s going to pay so much a month?”

Knight Frank Malaysia executive director Sarkunan Subramaniam concurs that there would always be purchasers for niche, high-end products.

“The super rich are not affected by economic times. They usually have their investments well protected and in a downturn, they become a lot more prudent in their spending. When the time is right, they will know when to buy. Of course, location (of properties) is critical and the Damansara area is a good location.”

Sarkunan also said chances of the homes being quickly snapped up were also dependent on whether the project was by a reputable developer.

Another high-end development that has seen promising take-ups is Planet Uno Sdn Bhd’s Seputeh Gardens, which will comprise 42 units of bungalows are scheduled for completion before the end 2011.

Priced from RM4.1mil to RM6.8mil, Seputeh Gardens managing director Liew Tze Yong says more than half of the homes were pre-sold even before their launch on Jan 16.

“Out of the total 42 units, 33 units were sold on the second day of the launch,” he says.

The homes are targeted at professionals, chief executive officers, and business owners, says Liew.

Each of the units has seven to nine rooms, including a study and a maid’s room. All bedrooms also come with attached bathrooms. Each home also comes with two kitchens and a laundry area.

The low-density homes come with spacious gross built-up areas ranging from 6,038 sq ft to 8,878 sq ft and land areas ranging from 4,500 sq ft to 8,200 sq ft.

Seputeh Gardens is situated at the intersection of major highways namely the Federal Highway, the New Pantai Highway, KL-Seremban Highway and also the East-West Link.

Liew says the success of the local high-end segment was dependent on location and “good architecture detailing and materials.”

The company, which is best known for its Gita Bayu development, is also studying the possibility of other high-end, niche residential projects and potential joint ventures.

By The Star (by Eugene Mahalingam)

Projects need to get moving to meet high-income goal

Competition among countries and corporations in various parts of the world is set to pick up steam in the bid to power stronger growth after the dreary past two years.

From Singapore to China and Dubai, new iconic projects are being added to drive higher value add to their economy.

Singapore’s two integrated resorts – Resorts World Sentosa and Marina Bay Sands – are set to make big waves and take a big bite of the lucrative gambling and tourism market.

Genting Bhd’s Resorts World Sentosa will open its casino to the public tomorrow in time to capture the holiday crowd over the Lunar New Year holidays. Universal Studios Singapore will open to the public in early March.

The Marina Bay Sands by Las Vegas Sands Corp has targeted for an April opening.

Malaysia has also targeted at the services-related sector to steer its economy up a few notches.

But to date there are still no specific projects that have been drawn up to promote higher growth in the services sector. It is about time to do some serious thinking and get the projects moving if it is to meet its high-income and economic growth aspirations for the people.

That will need a lot of thinking out of the box and not just leveraging on the existing assets and resources.

Tourism is certainly one of the most lucrative and high potential growth sectors for the country but there is a need for newer products and destinations to be introduced.

We can perhaps look at some interesting arts and lifestyle centres that promote Malaysian arts pieces, handicraft, performances, and culinary delights.

To be successful, these places should have the magnetism to awe visitors with their charismatic charm, unique design and ambience.

Having more iconic landmarks like the Petronas Twin Towers will also be able to do wonders for the city’s landscape and attract more visitors.

Most importantly, these projects should be functional and can add value to the people.

There is quite a long list of such places and projects dotting various parts of the world today. Most of them are steeped in history while a number of them are newly built structures.

Quite a number of these buildings are among the world’s tallest – Taipei 101 in Taiwan, Harmony Tower Shanghai and our own Petronas Twin Towers. The current world record holder is Dubai’s Burj Khalifa at 160 storeys high.

But not all are skyscrapers. Sydney is well known worldwide for its Opera House, and Harbour Bridge.

Some are just simple buildings within a unique environment like Shanghai’s popular tourist landmark, Xindianti that used to be an old community neighbourhood that has been given a new lease of life.

In fact, some parts of Malaysian cities including Kuala Lumpur, Petaling Jaya and Penang have grown quite dreary and old.

They certainly can do with some revitalisation and a new lease of life.

With effort and creativity, they can assume multiple uses during their life span. Old buildings can be remodelled and put to new uses.

There are many old buildings that are either government or private owned that have been left deserted after the tenants moved out.

Rather than let them languish and degenerate, these old buildings should be given new lease of life or be redeveloped to add value to them.

If properly planned and executed, they can generate many new economic activities and revitalise the older parts of the cities.

Many of the buildings have been built centuries ago and have survived a long legacy and history. They provide an invaluable insight into the rich culture and practices of the people during those early days.

It is important to have well thought out restoration plans for them to capture their past glory and turn them into viable places of interest that blend well with the present environment.

Deputy news editor Angie Ng appreciates the legacy of many of the old buildings in our cities and hope we may soon have our own Xindianti-equivalent to showcase to the world.

By The Star (by Angie Ng)

Sunway City contract

SUNWAY Holdings Bhd’s construction outfit, Sunway Construction Sdn Bhd, has won a RM21.5 million contract from Sunway City Bhd to build 100 units of 2-storey cluster homes and a TNB sub-station at Seksyen U10 in Shah Alam, Selangor.

In a filing to Bursa Malaysia yesterday, Sunway said the project, which is expected to be done by August 1 2011, will start contributing to earnings from this year.

The project is a related party transaction as Tan Sri Dr Cheah Fook Ling is a director and major shareholder of Sunway and SunCity.

By Business Times

Consortium developers to invest in iconic luxury GHM project in Bandar Enstek

From left: Tuan Hj Zaharuddin Saidon, Chief Executive Officer, TH Properties, Harish Davanam, MD Davanam Constructions Sdn Bhd, YB Datuk Mukhriz Mahathir, Deputy Minister, Ministry of International trade & Industry, Faizan Khan, MD Ascenteus Holdings Sdn Bhd and Sukhdeep Singh, Chief Operating Officer, GHM Ltd.

Ascenteus Holdings Sdn Bhd has joined hands with Indian developer Davanam Constructions to build an iconic GHM Country Club surrounded by luxury villas on 200 acres of natural environment in Bandar Enstek, Nilai.

The project envisioned by GHM Chairman Adrian Zecha will comprise a GHM- operated Country Club, surrounded by ultra low density, luxury villas.

The management and branding agreement was signed between the co developers- Ascenteus Holdings/ Davanam Constructions; and GHM, at a special signing ceremony yesterday, witnessed by Datuk Mukhriz Mahathir, Deputy Minister in the Ministry of International Trade and Industry.

Earlier, the Joint Venture Development Agreement was signed between TH Properties Sdn Bhd, Ascenteus Holdings Sdn Bhd and Davanam Constructions Sdn Bhd in July 2009.

GHM (General Hotels Management), a market leader in stylish luxury hotel development and management, and member of the exclusive ‘Leading Hotels of the World’ has an unrivalled reputation for conceptualising, developing and operating exclusive and stylish hotels and resorts worldwide.

GHM’s portfolio of properties includes The Setai (Miami Beach), The Legian & The Club at The Legian (Bali), The Nam Hai (Vietnam), The Strand (Myanmar), The Andaman (Langkawi, Malaysia), The Chedi Club at Tanah Gajah – Ubud (Bali), The Datai (Langkawi, Malaysia), The Chedi – Muscat (Oman), The Chedi - Phuket and The Chedi - Chiang Mai (Thailand).

“We choose only to get involved with properties where the owners truly share our vision to create a stunning property that is the best of its kind in the world. We believe the country club and villa estate in Bandar Enstek will be GHM’s most prestigious project to date in Malaysia,” said Hans Jenni, director and president of GHM.

The project with an estimated Gross Development Value of RM 1.2 billion, is slated to be a foreign direct investment (FDI) wherein the co developers Davanam Constructions and Ascenteus Holdings will raise the funding through Private Equity and Debt.

“Bandar Enstek is a strategic location with the F1 circuit and the KLIA being in the same vicinity. We are also taking advantage of the excellent infrastructure. Our target buyers will be high net worth Individuals drawn mostly from international circles,” said Faizan Khan, Managing Director of Ascenteus Holdings.

The residences are designed as ultra low density and high luxury with direct access to sought-after amenities provided by the Country Club. These include equestrian facilities, polo playing grounds, swimming pools, tennis and other sport facilities. The country club has been allocated 20-25 acres with the rest dedicated to the exclusive villas and luxury residences, totaling about 120.

“Malaysia and in particular Bandar Enstek is only a short air journey from Asia and it will be a much sought after destination for Asian and International high net worth individuals. We believe this development will redefine international luxury living” said Harish Davanam, Managing Director of Davanam Constructions.

Bandar Enstek, is a mega 5116 acres township master developed by TH Properties which is made up of four components, namely residential commercial, institutional and industrial. It is a vibrant development that has attracted world class developers for residential developments, educational institutions, medical facilities and international bio technology companies. Its strategic location next to KLIA and the Formula 1 circuit makes it one of the most promising townships in Malaysia.

By The Star

TH Prop plans eco-friendly features in Bandar Enstek

BANDAR Enstek aims to be a low-carbon township as it plans for eco-friendly features of solar-powered lighting and rainwater harvesting at its new clusters of resort-like clubhouse, villas and bungalows.



"Wherever possible we now want to incorporate natural lighting, recycle building materials and have the buildings powered by renewable energy like solar," TH Properties chief executive officer Zaharuddin Saidon said.

On immediate plans for the company, he said, a RM150 million residential project comprising terraced, double-storey linked and semi-detached houses will be launched later in the year.

"We'll design these luxury villas with Green Building Index certification in mind," Ascenteus managing director Faizan Khan said.
The gross development value of the 80ha project, estimated at RM1.2 billion in Bandar Enstek, Nilai, will be carried out in three phases. About 10ha will be set aside for the country club, while the remaining area will be used for luxury residences.

TH Properties Sdn Bhd, the overall developer of Bandar Enstek, had in July 2009, signed an agreement with GHM Ltd to manage the luxury-themed country club.

"We plan to have 40 villas and residences in each phase. This development is expected to be complete by 2015," Faizan told reporters at the management and branding agreement signing ceremony between Ascenteus, Davanam Constructions and GHM Ltd.

International Trade and Industry Deputy Minister Datuk Mukhriz Mahathir was present to witness the signing ceremony held in Kuala Lumpur yesterday.

The 2,046.4ha Bandar Enstek township, launched a decade ago, is expected to be fully developed by 2025. To date, 30 per cent of the land is built up and well-populated.

By Business Times

Sunway secures RM21.4m housing project from SunCity

KUALA LUMPUR: SUNWAY HOLDINGS BHD has secured a RM21.48 million contract from SUNWAY CITY BHD (SunCity) to build 100 double-storey cluster homes and one Tenaga Nasinal Bhd sub-station.

Sunway said on Friday, Feb 12 the completion date is Aug 1, 2011 with the construction period at 18 months.

"It is expected to contribute positively to the earnings of the Group for the financial year ending Dec 31, 2010 onwards," it said.

Sunway said the project is a related party transaction as Tan Sri Cheah Fook Ling is a director and major shareholder of Sunway and SunCity.

Sunway said it had obtained a shareholders’ mandate for recurrent related party transactions (RRPT) of a revenue or trading nature at its AGM on Dec 10, 2008.

"The RRPT mandate inter alia, covers the provision of construction works by SunCon or its subsidiaries to SunCity and its subsidiaries," it said.

By The EDGE Malaysia

Ascenteus plans RM1.2b development

ASCENTEUS Holdings Sdn Bhd and Davanam Constructions Sdn Bhd plan to build a country club surrounded by low density luxury villas with an estimated gross development value of RM1.2 billion in Bandar Enstek, Nilai.

Ascenteus managing director Faizan Khan said the 80-hectare project would be developed in three phases, with the first expected to commence by the third quarter of this year.

He said eight to ten hectares of the land would be dedicated for the country club, while the remaining space would be used to develop luxury villas and residences.

The consortium and TH Properties Sdn Bhd, the developer of Bandar Enstek, signed the joint venture agreement to develop the General Hotels Management country club in July 2009.
"We plan to have 40 villas and residences in each phase. The development is expected to be completed by 2014," Faizan told reporters at the management and branding agreement signing between Ascenteus, Davanam Constructions and TH Properties here today.

International Trade and Industry Deputy Minister Datuk Mukhriz Mahathir witnessed the signing.

Mukhriz said the fact that the property lies near the Formula One circuit and KL Intenational Aiport make the property "a try factor of overall investment".

The 2,046.4-hectare Bandar Enstek is expected to be fully completed by 2025 and to date, 30 per cent has been developed.

TH Properties chief executive officer Zaharuddin Saidon said a RM150 million residential project comprising terraced, double storey linked and semi-detached houses would be launched this year.

"We are also in talks with a local party that is interested to develop a project in Bandar Enstek," he said without elaborating.

By Bernama

Mah Sing eyeing land in Bangsar

PETALING JAYA: Mah Sing Group Bhd is eyeing 20 acres of prime land in Bangsar that Lever Brothers’ soap and margarine manufacturing plant was formerly located.

The site had been a famous landmark when Lever Brothers started operations there in 1947 until it moved out in 2003.

Steeped in history, it was reputed to be the largest factory in the country, creating job opportunities for hundreds of Malaysians then.

The company, which changed its name to Unilever Holdings Sdn Bhd in 1994, now operates at Menara TM in Jalan Pantai Baru, Kuala Lumpur and has a food factory in Rawang producing dressings, spreads, seasonings and sauces.


Tan Sri Leong Hoy Kum ... ‘We can build up a war chest of about RM1bil to purchase good prime land.’

The land’s location is very strategic and will be ideal for a good commercial development, according to Mah Sing group managing director cum group chief executive Tan Sri Leong Hoy Kum.

“We have expressed interest in the land and are negotiating for a fair value. Hopefully, the deal can be wrapped up by year-end,” he told StarBiz yesterday.

The proposed plan is to build some office towers, hotels and serviced residences on the plot.

If the deal goes through, Mah Sing will be able to further expand its presence in the commercial property sector.

A property valuer said the land could easily fetch between RM250 and RM300 per sq ft and should be worth between RM250mil and RM300mil.

Last year, Mah Sing acquired six pieces of land totaling 184 acres that brought its total landbank to 710 acres at end-2009.

The additional land has an estimated gross development value (GDV) of RM2.2bil. Its latest land deal was inked on Monday for 19 acres of industrial land in Shah Alam at a cost of RM45.5mil.

Mah Sing will also be exercising an option to purchase an additional 6.3 acres of commercial land next to its Garden Residence, Cyberjaya project for a total consideration of RM21.7mil, or at RM79 per sq ft.

It intends to develop a commercial development comprising lifestyle retail and serviced apartments on the land.

“With our healthy balance sheet, we can build up a war chest of about RM1bil to purchase good prime land that suits our fast project turnaround business model,” Leong said.

For the current financial year ending Dec 31, Mah Sing has targeted a 38% jump in the group’s property sales to RM1bil from RM727mil last year. It currently has 21 projects with remaining GDV and unbilled sales of RM5.8bil.

By The Star (by Angie Ng)

Melati Ehsan to bid for 10MP construction jobs

CONSTRUCTION group Melati Ehsan Holdings Bhd plans to bid for government contracts under the 10th Malaysia Plan (10MP) to grow its business.

The 10MP, a five-year economic development plan which runs from 2011 to 2015, is set to be unveiled in June this year.

Melati Ehsan has RM1 billion of contracts in hand, of which more than half are government projects.

These include the construction of the Trans-Eastern Kedah Interland Highway Project and the flood mitigation scheme at Bertam-Kepala Batas in Penang.
The group's net profit fell by a third to RM12.7 million for its financial year ended August 31 2009 due to fewer construction activities and higher raw material prices.

Revenue also dropped to RM178 million against RM208.5 million previously. About 60 per cent of its turnover comes from government projects.

The company is also vying for private development projects, especially from multinational companies. It has completed two Carrefour hypermarkets, one each in Kota Damansara and Cheras.



"Since we have a track record with Carrefour, we are looking forward for more projects with the hypermarket operator in future," managing director Tan Sri Yap Suan Chee said at the group's annual general meeting in Kuala Lumpur yesterday.

It also has 120 acres of land in Kota Damansara and recently acquired land in Bukit Tunku.

It bought 1.6 acre of land in Bukit Tunku for RM16.36 million in August last year and plans to develop bungalow lots next year.

Yap said the company is looking to buy more land in the Klang Valley with about RM80 million cash in hand.

By Business Times

MRCB's property turnover to exceed 50% by next year

KUALA LUMPUR: Malaysian Resources Corporation Bhd (MRCB) expects turnover from its property division to exceed 50 per cent by next year as the construction of KL Sentral project gains momentum.

Saying that the property turnover to group's profits was between 30 and 40 per cent, OSK Research said the on-going projects in KL Sentral was progressing as planned with some ahead of schedule.

"Other than the on-going projects and an improving outlook for the property sector, MRCB is expected to launch its luxury condominium project later this year with an estimated gross development value (GDV) of more than RM800 million," it said.

The research house said MRCB has indicated that its joint venture partner, CMY Capital Sdn Bhd, had reaffirmed its commitment to kick-start the St. Regis Hotel & Residences project soon with an estimated GDV of RM1.5 billion.

In order to continue its legacy in the property sector, OSK Research said MRCB was eyeing several land parcels belonging to the Federal government as part of its landbank replenishment strategy.

It said the company's recent rights issue could be an indication that MRCB was close to sealing the deal.

"Although there is no firm timeframe on the deal, we believe the potential land acquisition could be a positive catalyst for the stock price," the research house said.

MRCB had hinted earlier it may acquire small parcels of federal land in the Kuala Lumpur city centre including the Brickfields area.

As at mid-day MRCB was traded flat at RM1.31.

By Bernama

E&O secures 50% sale from initial launch in Penang project

GEORGE TOWN: EASTERN & ORIENTAL BHD (E&O) has sold 50% of the units it put up for sale from the first block of the RM1.8 billion Quayside seafront luxury condominiums that was officially launched last Sunday.

The company had a soft launch of the first block, which comprises 298 units priced between RM765,000 for a one-bedroom unit to RM4.3 million for a penthouse unit, a month ago. Some 30% of the units were secured by interested buyers before last Sunday's official launch.

E&O had only expected to reach the 50% sales mark two months from the official launch of the first block. The RM1.8 billion development consists of seven blocks of condominiums, five of which are high-rise with 26 storeys and 298 units per block while two are low-rise with seven-storey blocks of 51 units each.

"We are well within our target and we expect interest and sales momentum to be stronger over the next two weeks, straddling the Chinese New Year holidays," said E&O executive director Eric Chan.

The project, which spans 21 acres (8.4ha) of prime seafront land is located within the Seri Tanjung Pinang development and positioned as an elite waterfront community like Australia's Sovereign Islands and Sentosa Cove in Singapore.

They offer a 270-degree view of the Andaman Sea, Gurney Drive and Batu Ferringhi beaches, with 60% of the units facing the sea and the rest hill and gardens.

The gated community featuring resort-style living offers buyers seven different design types and sizes, including the penthouse unit with a built-up area of 7,159 sq ft which comes with a private swimming pool.

The first block will be completed by 2013, while the entire Quayside project is expected to be completed within seven to 10 years.

By The EDGE Malaysia

Mah Sing buying Shah Alam land for iParc2

Mah Sing Group Bhd is buying a 7.7ha prime freehold land in HICOM Industrial Estate in Shah Alam, Selangor, for RM45.5 million cash.

The property developer plans to make it its latest industrial hub project, called the iParc2@Shah Alam, with a gross development value of RM143 million.

Mah Sing managing director and group chief executive Tan Sri Leong Hoy Kum said the land is in a mature neighbourhood with good connectivity and strong demand for industrial property.

"Since the launch of iParc@Bukit Jelutong, Selangor, in January, we have sold 40 units out of a total of 42 units. This acquisition is timely and strategic as we would like to cater to the pent-up demand for this product," Leong said in a statement.
Under the deal, the property developer's wholly-owned subsidiary, Multi Synergy Group Sdn Bhd, signed a deal with Quill Industrial Properties Sdn Bhd for RM45.5 million or about RM54.45 per sq ft.

iParc2@Shah Alam will offer three-storey semi-detached factories with layout flexibility options priced from RM2.5 million each, with the smallest unit at about 5,400 per sq ft.

The main target market will be local companies looking to integrate their corporate headquarters with operations and warehousing facilities as well as multinational corporations from various industries.

The site is strategically located at the confluence of major highways leading to all major locations and key logistic ports and airports.

Together with iParc2@Shah Alam, the group has projects with remaining GDV and unbilled sales of about RM5.8 billion in the Klang Valley, Penang and Johor Baru.

As at December 31 2009, the group has RM400 million cash and zero net gearing.

By Business Times

Mah Sing unit to buy land for RM45.5m

PETALING JAYA: Mah Sing Group Bhd’s wholly owned unit Multi Synergy Group Sdn Bhd yesterday signed an agreement to acquire 7.67ha of freehold industrial land in Hicom Industrial Estate, Shah Alam, from Quill Industrial Properties Sdn Bhd for RM45.5mil cash.

Mah Sing said in a statement yesterday that the land, priced at RM54.45 per sq ft, would be developed into iParc 2@Shah Alam, an industrial development with an estimated gross development value of RM143mil.

Group managing director-cum-group chief executive Tan Sri Leong Hoy Kum said the project would be a low-density industrial park for hi-tech industries, logistics warehousing and service facilities.

“The main target market will be local companies looking to integrate their corporate headquarters with operations and warehousing facilities as well as multinational corporations from various industries.

“Based on preliminary plans, iParc 2@Shah Alam will offer three-storey semi-detached factories with layout flexibility options priced from RM2.5mil. The built-up for the smallest units will be about 5,400 sq ft,” Leong said.

The development, spanning three years, is scheduled to begin in the second half of this year.

By The Star

PHB to spend RM182m on green complex in Putrajaya

PUTRAJAYA Holdings Bhd (PHB) will invest RM182 million to develop the first commercial green building complex in Putrajaya

The complex, located in Precinct 2, will feature an eight-storey building, a four-storey podium block and two courtyards. It will be ready by early 2012, PHB chief executive officer Datuk Azlan Abdul Karim said.

PHB, the master developer of the country's federal administrative centre, plans to lease the building to government agencies or local and multinational companies.

"We hope to achieve 8 to 9 per cent yield on our investment. Currently, we are getting some 8 per cent from our existing buildings," Azlan said.
He said construction will be done by Putra Perdana Construction Sdn Bhd (PPC), the construction arm of Putrajaya Perdana Bhd, after the Chinese New Year festival.

The construction deal was signed yesterday between PHB's unit, Putrajaya Holdings Sdn Bhd, and PPC in Putrajaya, witnessed by Minister of Federal Territories and Urban Well-being Datuk Raja Nong Chik Raja Zainal Abidin.

Azlan said after the signing of the agreement that the commercial complex will be developed into a Green Building Index Gold Certified Building.

"It would be built based on an environmentally sustainable design, with emphasis on energy efficiency and indoor environment quality,"he said.

By March, construction on the new 350-room business hotel in Precinct 1, with estimated development value of around RM160 million, will start.

Sunway Construction Sdn Bhd has been awarded the contract to build the four-star hotel, which is expected to open by end-2012.

By April, PHB plans to launch an S-shaped waterfront development, comprising boutique retail lots for alfresco dining and lifestyle offices, next to Alamanda shopping complex in Precinct 1.

The RM80 million project is in the tender stage now.

"We are very positive on the outlook. If you look at business at Alamanda, it is doing well. Even business at Pullman Putrajaya Lakeside Hotel is picking up.

"We have lined up a slew of new launches for the rest of the year," Azlan said.

By Business Times (by Sharen Kaur)

Singapore's first casino may open this weekend

SINGAPORE: Singapore is set to open its first casino as early as this weekend, the city-state's latest roll of the dice in its efforts to turn from a staid manufacturing hub to an Asian playground for the rich.

The opening of the Resorts World at Sentosa (RWS) by Genting Singapore may be timed to coincide with the Lunar New Year holiday to attract thousands of overseas and mainland Chinese to the island, industry sources and analysts said.

Genting, a unit of Malaysia's Genting Bhd, declined to confirm the opening date, after the government granted Genting a licence to operate the casino on Saturday, earlier than an expected March or April start and ahead of Las Vegas Sands' rival Singapore casino.

"The early opening ahead of Marina Bay Sands will be positive as it allows RWS to reap the full benefits of a monopoly during the typically peak Chinese New Year festive season," said Keith Wee, an analyst at OSK Research in Kuala Lumpur.
Genting shares rose as much as 5.4 per cent or its biggest gain more than a month when trading opened on Monday, making it the most actively traded stock on the Singapore bourse, but it lost gains to close 1.8 per cent lower.

Deutsche Bank in a report on Monday forecast it would make S$1.7 billion (S$1 = RM2.42) of gross gaming revenue in its first year, but warned that after recent new casino openings in Macau share prices corrected on four occasions between 11 and 29 per cent within 1-2 months.

Singapore is gambling on casinos to increase its tourism revenues and lead to spin-offs such as luxury services and increased business for wealth managers in its financial centre.

Known for shopping malls, efficiency and staid social engineering, the Southeast Asian country is already home to the highest density of millionaires in the world, and the casinos will add to the glamour from a Formula One night street race.

The Straits Times newspaper reported on Monday Genting has told staff and tenants that the casino and associated Universal Studios theme park at its Resorts World at Sentosa casino-resort will open this week.

Resorts World at Sentosa spokesman Robin Goh declined to confirm, saying: "We are still on track for the soft opening in the first quarter of 2010."

In January, the firm opened four of its six hotels as well as some shops and food outlets, while casino staff were trained by roleplaying as clients and croupiers.

Singapore legalised casino gambling in 2005 and said it will allow two casino-resorts to be built as part of ambitious plans to double visitor arrivals to 17 million by 2015.

The city-state's other casino-resort, Las Vegas Sands' S$5.5 billion Marina Bay Sands, is scheduled to begin its phased opening in April, although many analysts doubt if the firm can meet the target date.

Casino operators in Singapore will pay an effective tax of around 12 per cent on net revenue from gamblers, giving them an incentive to draw Asian high rollers away from Macau where the tax is just under 40 per cent.

Each integrated resort is expected to contribute a value add of S$2.7 billion to Singapore's gross domestic product (GDP) in 2015, Singapore's tourism promotion agency estimates, roughly between 0.5 and 1 per cent of GDP.

By Reuters

Magna Prima plans RM1.3b twin towers on KL prime site

Property developer Magna Prima Bhd will build twin tower blocks, valued at more than RM1.3 billion, on 1.05ha prime land near the Petronas Twin Towers in Jalan Ampang, Kuala Lumpur, its chief said.

Magna Prima bought the land, currently occupied by the 44-year-old Lai Meng Primary School and Lai Meng Kindergarten, from the Lai Meng Girls School Association for RM148.2 million in March last year.

Previously, Magna Prima had wanted to build a 50-storey Grade A office building, a 38-storey serviced apartment tower and a two-level retail podium, with total estimated gross floor area of 1.2 million sq ft, on the existing school site.

"If we could, we would have liked to build a luxury hotel, too. But we have to look at what is already in the market in that location.

"We feel we can extract the most value from the land by building the twin blocks," its chief executive officer Yoong Nim Chee said.
The first tower will feature luxury serviced apartments. The second tower will be a Grade A green office building with up to 900,000 sq ft of net lettable area. The office tower may be leased or sold.

"We are conceptualising the designs with international architects. Also, on how best to position the products," Yoong told Business Times in an interview.

Magna Prima is targeting to start construction in 2013, after approval by Ho Hup Construction Co Bhd's shareholders to sell to the company 2.2ha in Bukit Jalil, Kuala Lumpur, for RM10.7 million where the new Lai Meng school will be built.

The school association has confirmed that it will move to a site in Bukit Jalil, and Magna Prima will help in the relocation of the school, Yoong said.

However, Magna Prima's project in Jalan Ampang will only start when the new school is completed.

The twin towers project will be Magna Prima's single largest development to date, and its second project in the Kuala Lumpur City Centre area. The first was the RM300 million Avare condominium in Jalan Stonor, launched in 2005.

"We believe our product offering will hold well. Look at land transactions opposite where we bought ours. The deals were transacted at a higher value. So, we are expecting some decent profits during the development," Yoong said.

Last November, Dijaya Corp Bhd said it would pay RM123 million for land in Jalan Ampang on which the historical Bok House used to sit.

The price translates into about RM2,200 per sq ft (psf), which is slightly below the RM2,588 psf that Sunrise Bhd paid in August 2008 for the land occupied by Wisma Angkasa Raya.

Magna Prima's price for the land translates into RM1,500 psf.

By Business Times

Mah Sing buys industrial land for RM45.5m

Mah Sing Group Bhd, via its subsidiary Multi Synergy Group Sdn Bhd, has entered into a sale and purchase agreement with Quill Industrial Properties Sdn Bhd to acquire about 7.67 hectares of land in Shah Alam for about RM45.5 million.

The land is earmarked for industrial development, to be named iParc2@Shah, and will have an estimated gross development value of about RM143 million.

Mah Sing's Managing Director and Group Chief Executive Tan Sri Datuk Seri Leong Hoy Kum said with the acquisition, the company would be able to tap on the strong demand for good industrial property in the Hicom Industrial Estate.

"Since the launch of iParc@Bukit Jelutong in January, we have seen overwhelming response as we have sold 40 units out of the total of 42 units.
"That leaves only two units which is why this acquisition is timely and strategic as we would like to cater for the pent-up demand for this product," he said in a statement today.

By Bernama

E&O hospitality activities set to rise this year

PROPERTY developer Eastern and Oriental Bhd (E&O) sees its hospitality activities in Penang receiving a boost this year with the reopening of its four-star Lone Pine Hotel along Batu Ferringgi.

The company, which is synonymous with the 125-year-old Eastern & Oriental Hotel (E&O Hotel) in George Town, is also expecting this hotel's extension, known as the Annexe, to be completed in 2012.

E&O managing director Datuk Terry Tham said the 50-room Lone Pine, which closed its doors for a RM50 million refurbishment in April last year, will reopen by the fourth quarter of the year.



"The refurbished property will boast of a spa, restaurants, a bigger pool and upgraded rooms," Tham told a media briefing in Penang yesterday.
Also present was E&O executive director Eric Chan.

Tham was in Penang to launch E&O Property Development's Quayside Seafront Resort Condominiums.

The upscale project is a component of the Seri Tanjung Pinang waterfront development, which is being tagged by the developer as the new millionaires' enclave on Penang island.

On the Annexe, Tham said the 15-storey extension, when completed in 18 to 20 months, will see the E&O Hotel offering an additional 139 guest suites along with retail, food and beverage components as well as a spa.

"The podium area will have more extensive meeting and banqueting facilities and we will also offer a bigger pool," he added.

Meanwhile, ahead of its official launch, the Quayside condominium project has already received some 100 bookings from both foreigners and locals for the more than 300 units in the first block, Chan said.

Conceptualised by international achitects WATG, Quayside's point-block design comprises five high-rise towers and two low-rise blocks.

By Business Times (by Marina Emmanuel)

E&O Hotel’s extension to be ready in 2012

GEORGE TOWN: Eastern & Oriental Bhd is targeting 2012 for the completion of the Eastern & Oriental Hotel extension project known as the Annexe.

Group managing director Datuk Terry Tham told a press conference that about RM150mil was spent on the construction of the Annexe, which would add another 139 suites for Eastern & Oriental Hotel, increasing its total number of suites to 240.

”The other components include a spa, a swimming pool, restaurants, and retail outlets,” he said.

Tham added that the original 28-storey height of the Annexe had been reduced to 15 storeys to comply with George Town’s heritage conservation guidelines. He was speaking after the presentation of the group’s RM1.8bil Quayside project by the US-based consultants.

Tham said the group’s Lone Pine Hotel, currently under renovation, would be ready in the final quarter of 2010.

”The completion of the renovation will increase the number of rooms to 90 from 50 previously.

”We are spending RM50mil for the renovation,” he said, adding that the last time Lone Pine Hotel underwent a facelift was in 1999.

On the group’s Quayside project, Tham said between 30% and 40% of Quayside’s gross sales value of RM1.8bil was spent for consultants on security, landscape, and architecture.

”We have received queries for about 110 condominium units of the first block Quayside project,” he said.

The first block of Quayside has 298 units and is located next to Straits Quay, which comprises a serviced suite component and a 250,000 sq ft marina and retail space that will be leased to food and beverage outlets.

”We will be going overseas in March to promote Quayside,” Tham said.

Tham said the master plan for the second phase of Seri Tanjung Pinang would be ready by 2017.

”We are taking into account the environmental factors in doing the master plan.

”We have till 2017 to reclaim 740 acres of land at Tanjung Tokong for the second phase,” he said.

By The Star

Poorly planned township results in traffic congestion

The evening traffic jams at PJ Section 16 are a daily problem.

With the economic recovery and renewed interest in property buying, there is bound to be more project launches in the coming months.

Instead of just going ahead with their project plans individually or on an ad-hoc basis, it is important for industry players and the authorities to actively engage with each other and look for ways to further improve our towns and cities.

Town planners, developers and the approving authorities should always look at the big picture and take into account the needs of the people in the years to come.

Instead of just planning for the needs of the current population or the new project in question, planning for new roads, public amenities such as schools, markets, town halls and even bus stations should be for a longer-term period of 10 to 20 years at least.

The public should be kept informed of any new developments that are coming up in their areas to invite their feed back and proposals.

By promoting a more consultative approach in our development plans, we will be able to plan ahead and have in place solutions for some of the “expected” future problems even before they crop up.

It has become almost a perennial problem to find that when a township starts to mature and is joined by other newer developments a couple of years later, the roads leading to and out of the township will be choked up.

An easy litmus test to find out whether there has been forward planning by the approving authorities is to take a quick look at how congested the roads are.

Having the advantage of knowing in advance the number and size of new projects submitted for approval and how many projects will be approved in a certain locality, the planning authorities should ensure that sufficient infrastructure be provided way in advance.

This calls for a thorough master planning on the part of the authorities and they will have to tabulate the growth in population and estimated number of vehicles. The tasks of getting these facilities ready should be delegated to the responsible parties.

Heavily congested roads are a common sight in many housing estates and commercial areas in Kuala Lumpur and the Klang Valley these days.

One of the most obvious handicap faced by many of our townships and cities is that the road infrastructure does not take into account the rising vehicle population and are now literally bursting at their seams.

Traffic jams in and around Kuala Lumpur and the Klang Valley are worsening by the day and many roads are badly choked.

It is no wonder that Klang Valley folks are spending more time in their cars just to get to and back from work. With the rainy season here again, the traffic snarls will only get worse.

The daily clogged up roads and the incessant jams are certainly one of the biggest inconveniences for city folks who have no choice but to put up with the bad jams day in day out.

Most of them still choose to drive because the inadequate and poor state of the public transport system does not provide them with any alternative.

Besides wasting a lot of time on the road, they are also sapped of their energy and have to fork out higher fuel bills.

The infamous Phileo Damansara crawl is well known among Petaling Jaya folks. The traffic crawl after office hours sometimes start from the car park basements.

Many questions have been raised on how the authorities can approve so many blocks of office buildings in the area when it is only served by one main entry and exit road. Luckily the ramp that was completed in 2002 has managed to divert traffic heading to Kuala Lumpur from the main exit.

It will save a lot of time for the many office workers in the area if there is a reliable public transport system in place to serve them.

With the many blocks of office buildings and nearby townships in Section 16 and 17, the area can certainly do with a light rail transit line and station to serve the many office workers and local population.

It is about time we revisit plans to upgrade our public transport infrastructure and ensure that they are equipped with the right facilities to attract more commuters to use them.

Let’s get our act together and do as much as possible to ensure the people’s incessant calls for a more functional and efficient public transport system becomes a reality soon.

In our drive to promote higher quality of life among the people, having well planned infrastructure including a good functioning public transport system is not an option but a necessity.

Deputy news editor Angie Ng believes the country’s quality of life index will go up many notches if the public and private sectors are more far sighted and work hand in hand as partners in progress.

By The Star (by Angie Ng)

Better days ahead for retail sector

The world is emerging from one of the toughest economic downturns in a while, and for the shopaholic in all of us, 2010 seems like a good time to unleash that pent up demand that has been building up since the crisis hit in late 2008.

Real estate agents and industry observers are cautiously optimistic that the local retail market is expected to see some growth this year, but it won’t be spectacular.


Elvin Fernandez ... “Underlying risks exist that may scuttle consumer spending this year.’

Khong & Jaafar Sdn Bhd managing director Elvin Fernandez says the health of the local retail market is dependent on the level of consumer spending.

Fernandez says “underlying risks” exist that may scuttle consumer spending this year.

“The global economy may weaken, the Malaysian economy may experience weak growth. Subsidies may be moved; all these could lead to households tightening their spending,” he tells StarBizweek.

Conversely, there are also indications that the retail market could be in for good times, say Fernandez.

“There is that potential. We see better tourist arrivals and spending this year largely because of low-cost carrier travels,” he says.

According to Fernandez, rental rates of downtown shopping centres (namely Suria KLCC and Pavilion in Kuala Lumpur) and suburban shopping centres (like Midvalley in Kuala Lumpur, One Utama and Sunway Pyramid in Selangor) have been holding steady for a while.

Rent for average prime space at downtown and suburban shopping centres are averaging between RM50 to RM60 per sq ft and RM35 psf respectively the past couple of years.

“Even in the downturn areas, rates have remained steady. We don’t expect them to shoot up suddenly this year,” says Fernandez.


Richard Chan concurs that retail rental rates are likely to hold steady.

Malaysian Association for Shopping & Highrise Complex Management advisor, Richard Chan concurs that retail rental rates are likely to hold steady, adding that the sub sector would probably experience single-digit growth due to the improved economic conditions and improved consumer sentiment.

Despite better days ahead, Chan says there would not be an oversupply of retail space, especially within the Klang Valley area as it is already over-populated.

“There are over 130 shopping stores in the Klang Valley alone!” Neither does he expect many new malls being built this year.

“Pavilion is the last big mall in the Klang Valley within the Golden Triangle area and the price of land there is very expensive. Land is expensive even in the outskirts of Kuala Lumpur and Petaling Jaya. Developers obviously need to plan where to build their malls.”

According to Henry Butcher Retail, among the shopping centres that completed and opened (whole or part) in the Klang Valley last year include Bangsar Shopping Centre Phase 3, USJ 19 City Mall, IOI Mall Phase 2, Wangsa Walk, Solaris Dutamas, Subang Avenue, Plaza RAH and Giza Dataran Sunway.

New retail supply within the Klang Valley dipped to 1.4 million sq ft in 2009 versus 1.7 million in 2008. Henry Butcher estimates new retail supply to grow to 4.4 million sq ft this year.


Allan Soo says the retail market had picked up in the fourth quarter of 2009.

Regroup Associates Sdn Bhd managing director Allan Soo expects the local retail market to grow less than 5% this year, with growth from existing malls within the Klang Valley.

He says new malls would not contribute to growth because they needed to “struggle” initially to build their business and attract consumers.

Soo distinguishes the retail market by location or ‘tiers,’ namely the first tier (Klang Valley), the second tier (Penang and Johor Baru) and the third tier (small towns in states other than the first two tiers).

“The growth will be driven mainly by shopping centres within the first tier. Those in the second tier should be stable while those in the third tier may be affected.”

Soo says the retail market in Malaysia had picked up in the fourth quarter of 2009, estimating that it grew less than 1% for the whole year.

“In the last three months of 2009, retailers saw good growth due to pent up demand from 2008 to early 2009. There was also a notable tourist increase during that period. We believe that this momentum will be carried into 2010. Despite improved sentiments, there are still underlying worries that the Malaysian economy may be less competitive or the possibility of a double-dip recession in the global economy,” he says, adding that the local retail market could pick up further in the second half of this year.

Retail outlets selling essential goods could continue to perform well, even in times of inflation.

“Despite a spike in inflation in 2008, these sectors did well. Going forward, sectors like mainstream fashion could be affected by newer, affordable types of fashion.”


Tan Hai Hsin forecasts the retail market to grow 5% this year.

Henry Butcher Retail managing director Tan Hai Hsin also forecasts the retail market to grow 5% this year, adding that it was likely to have grown 0.8% in 2009.

“The Klang Valley remains the key driver of retail sales for the entire Malaysia. They account for about 40% of the total retail sales in Malaysia,” he says, adding that the average occupancy rate of shopping centres in Klang Valley last year was 86%.

“They are also the most affected states during the economic crisis. The largest drop in consumer spending and the largest number of store closure also took place in these two states during bad times,” Tan says.

“Penang is highly dependent on the export and manufacturing sectors and was affected by the crisis while Johor Bahru has been affected by Singapore recession,” says Tan. He adds that the average occupancy rate of shopping centres in Penang and Johor Bahru was 69% and 62% respectively last year.



By The Star (by Eugene Mahalingam)

Does Sime Darby need Sunrise?

Last week, one property deal was a bit of a puzzle when all the pieces refused to fit snugly no matter which way you moved them around.

That was the deal by conglomerate Sime Darby to develop a RM1bil commercial development in its established Bukit Jelutong housing area in Shah Alam with another property developer, Sunrise.

The questions are: Why does Sime Darby, a developer with a long and varied track record, need Sunrise, an established condominium developer with limited experience in commercial development, to put up a commercial centre? Has not Sime Darby more expertise than Sunrise in this area?

First the facts. Sime Darby and Sunrise will have equal stakes in a joint venture to develop 20.95 acres in the 180-acre Bukit Jelutong township. The land comes from Sime Daby’s huge land bank, probably the largest in the country.

The price of the three pieces of freehold commercial land is RM114mil, or RM125 a sq ft. That is a rather good price for a buyer considering that the gross development area is 2.7 million sq ft and it is a RM1bil project. In fact, one may be hard put to buy residential land in Bukit Jelutong at that price now!

The project will consist of retail, shopoffices, office-suites and serviced apartments. It will be launched and developed in 5 phases from 2011 onwards. The overall project is expected to be completed seven years from the launch of the first phase.

If one breaks up the profit from the project and allocates it over the years, it does not really make much difference to Sime Darby.

If we assumed a 20% gross margin, gross profits for the whole project would be RM200mil and over seven years that amounts to less than RM30mil per year. The half share for each party will be less than RM15mil a year.

On a proportionate basis, that makes a lot more difference to Sunrise’s bottom line than Sime Darby’s which is a giant of a company with the largest market value of any listed company in Malaysia.

So what is in it for Sime Darby? The company says it is trying to accelerate property development. Sime Darby is also one of the largest, if not the largest property developer, in Malaysia with a considerable amount of resident expertise.

But in return for expertise from another developer, it is selling its share of the land at a very low price and forsaking half of the profit from the development venture to its partner. Could it not at least have obtained a better deal for itself?

And why can’t Sime Darby develop the land itself? Many of us will recall Sime Darby as the developer of the very successful and massive Subang Jaya township which included the development of a very vibrant mall together with a commercial centre.

That is clear indication that it has all the expertise that it needs in-house. If it lacked for anything in any particular area, it would be quite easy to purchase the expertise initially and develop it in-house after that.

After all, there are many architects, consultants, designers and planners who will do this job for a fee and to whom you will not have to surrender 50% of profits through a joint venture.

On top of that, the hinterland for this commercial development is already there – Sime Darby’s Bukit Jelutong is a very successful residential property venture and already has 25,000 people staying there. That makes it much easier for the commercial development to succeed.

Sime Darby has hundreds of thousands of acres of plantations. Land banks with development potential number in the tens of thousands of acres. If it does not have sufficient in-house capacity to develop these, it had better develop it fast. Meantime it can buy it.

Otherwise, it is going to needlessly pass on profits which could be its own to other developers, in this case, a developer much more junior and smaller to it and which has a much narrower area of expertise. Sunrise’s one major commercial development is Solaris in Mont’Kiara, incidentally its area of concentration.

As a major government-linked company substantially owned by Malaysian trust agencies and funds, Sime Darby must be always mindful to extract the best value for its shareholders, especially from valuable land banks which it has held for decades. Whichever way one tries to fit the pieces, there is just one conclusion – the deal benefits Sunrise much more. It gets valuable land at a very reasonable price from a competing and competent developer, manages it and reaps equal profits from it.

How much better a deal than that can one get? And why?

Managing editor P Gunasegaram often has trouble understanding strategic moves by Malaysian listed companies.

By The Star (by P. GUNASEGARAM)

REIT players call for easing of capital raising rules

PROPERTY trust players in Malaysia hope the Securities Commission (SC) will relax restrictions to allow them to raise funds in the equity capital market more quickly and efficiently, says the chief of one of the larger players.


"We hope the regulator will basically give real estate investment trusts (REITs) a bit of a clear run to raise capital, as the market comes back, to get their capital base up. At the moment, it (the rules governing capital raising) is quite restrictive," said Stewart LaBrooy, chief executive officer of Axis REIT Managers Bhd.

Axis REIT Managers is the manager of Axis REIT, the country's fourth largest listed property trust in terms of asset value, and third largest by market capitalisation.

LaBrooy exlained that REIT players need to be able to raise funds whenever there's a good opportunity to buy property.

Private placements, rather than rights issues, are the preferred method to raise cash as these are less risky, less expensive and quicker to do provided they are done in a non-dilutive manner, he said.

But under existing SC rules, REITs can place out new units of only up to 20 per cent of their unit base. Furthermore, this can be done only once every 12 months.

Such restrictions hold back REITs' portfolio growth, LaBrooy said.

"As a result, Malaysian REITs are largely ignored by many institutions due to their illiquidity and small market capitalisation, which leads to unexciting share price performance," noted a REIT analyst at Kenanga Research.

Malaysian REITs need to be able to quickly build up their portfolios to US$500 million (RM1.72 billion) if they are to interest foreign funds at all, LaBrooy said.

The newly formed Malaysian REIT Managers Association, led by LaBrooy, is now pushing for changes in these rulings to expedite capital raising activities.

"For example, keep the 20 per cent cap in place but remove the 12-month time limit until we get to a certain size, and then reimpose it if necessary," he suggested.

Easing the rules may also encourage more REITs to list, he remarked.

Axis REIT is currently seeking an SC waiver on the 12-month time-limit for its proposed placement of 61.4 million new units to raise RM113 million for new acquisitions.

It last did a placement less than a year ago. Analysts said the timing is good for such an exercise as its unit price is now trading at a premium to its net asset value of RM1.79. It closed at RM1.96 yesterday.

It needs the funds to buy five properties this year, aiming for its total portfolio value to breach the RM1 billion mark soon.

Axis REIT currently manages 21 properties in Malaysia with total value of RM907.7 million. These range from offices and warehouses to logistic centres.

By Business Times