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Wednesday, March 17, 2010

PPH Resorts counter-sues SP Setia unit

PETALING JAYA: PPH Resorts (Penang) Sdn Bhd has filed a counter claim against SP Setia Bhd unit Setia Promenade Sdn Bhd which recently filed a writ of summons and statement of claim against the former to recover its project advances, interest in the advances and development project expenditure incurred.

PPH was claiming RM5.72mil and “damages alleged to have been suffered” to be assessed by the court, SP Setia said in a filing with Bursa.

Setia Promenade had filed a suit against PPH after terminating the joint venture (JV) agreement between the parties following a thorough assessment of the proposed development on 45-acre freehold land in Penang, citing among other reasons, failure of common purpose of the JV agreement.

SP Setia said Setia Promenade had advanced about RM12.2mil to secure the release of some of the affected lots and incurred development project expenditure in pursuance of the proposed JV. It said the JV was announced in December 2006 and it stated that said Setia Promenade would was to provide the initial funding for the development of the land and these that shall be treated as advances to the JV.

According to the agreement, Setia Promenade shall be entitled to charge interest at the rate of 8% per annum on the advances and shall have the right to create encumbrances over the land to secure the advances and interest on the advances.

PPH had filed a counter-action on March 12 for, among others, the recovery of the sum of RM5.72mil and damages alleged to have been suffered to be assessed by the court.

“The legal action is not expected to have a material adverse impact on the earnings and the net assets of the company,” the company said.

By The Star

Malton unit in RM2.5b pact with Bukit Jalil

MALTON Bhd wholly-owned subsidiary Pioneer Haven Sdn Bhd has entered into a joint development agreement with Bukit Jalil Development Sdn Bhd for the development of a mixed commercial and residential project.

The project has an estimated gross development value of RM2.5 billion.

In a filing to Bursa Malaysia today, it said the proposed development will be carried out and completed in phases over a 10-year period.

Malton said the joint venture was in line with the company's expansion plan of its core business activities of property development, construction and property investment.
It said the proposed joint venture is expected to contribute to the medium and long-term profitability of the company.

By Bernama

Ho Hup subsidiary to receive RM265m from JV with Malton

KUALA LUMPUR: Ho Hup CONSTRUCTION Co. Bhd's subsidiary is teaming up with MALTON BHD 's unit to develop a piece of freehold land, measuring 243,000 sq metres (approximately 60 acres) into mixed commercial and residential development.

Under the agreement, Ho Hup said on Wednesday, March 17 the project would comprise of shopping complex, shop offices, office tower, service apartments and hotel.

The joint development agreement (JDA) is between Ho Hup's Bukit Jalil Development Sdn. Bhd (BJD) and Malton's Pioneer Haven Sdn Bhd. BJD would be entitled to a minimum of RM265 million from the joint development.

"Given that BJD is facing financial constraint and inability to secure the financing to proceed for the development, hence, the JDA will allow Ho Hup, through BJD, to generate revenue and profits without having to fund the development.

"In addition, in the absence of any refinancing options, the entry into the JDA presents a viable alternative to restructure the amount owing to the existing charge and avoid foreclosure of the land," it said.

By The EDGE Malaysia

Speculation partly to blame, says think tank

The ever-rising prices of property in Penang are not just down to scarcity of land but are partly due to speculators, strong demand from investors and a low-interest rate environment.

Dr Michael Lim Mah Hui, senior fellow of Socio-economic and Environmental Research Institute (Seri), a think tank, said the investors comprise wealthy Malaysians and foreigners.

The price rise is making property increasingly out of reach for the average Penangites. The strong demand means that developers were putting more expensive price tags on their projects.

Lim, a banker who worked with Credit Suisse, Standard Chartered Bank and the Asian Development Bank, said from 1999 to 2008, the prices of property in Penang rose 40 per cent.

This increase is a tenth more than that for the whole country, and it is still going up.
Terrace houses in Penang now average RM700,000 to RM1.2 million, against RM445,000 to RM520,000 two years ago.

"Condominiums cost RM250 per square feet in 2008 but now the price is RM350 to RM500, depending on the location," Lim said during Seri's roundtable on housing affordability gap in George Town last week.

However, it is not surprising if entire development projects are sold out in two days now as buyers are easily taken in by attractive down payments as low as 1 per cent and the low interest rates for housing loans, he said.

The public may not fully understand the risks of adjustable-rate mortgage (ARM) when they sign up for loans, for example. An ARM gives low rates at the start of a loan but the rates go up after the promotional period.

"Such a situation can result in a (real estate) bubble, which nobody can tell when it will happen," Lim said.

He said certain developers were not helping the situation by reserving the best units for their "special customers".

"Some developers let their prime customers and insiders cherry pick the units they want first before everyone else.

"When the average house buyers visit the developers' sales galleries at the project launch, they find many units had already been sold, encouraging many of them to quickly make down payments for the remaining units as well," he said.

Lim expressed concern that there is a mismatch of supply and demand for properties in the state with many houses, flats and apartments vacant.

He said in 2000, there were 355,436 housing units in Penang but only 284,969 households, indicating an oversupply of 20 per cent.

"Since then, more units have been built. If you go round at night, you will notice that many homes are unoccupied, especially super-condominiums that are beyond the affordability of average households.

"This is also an indication that there is an undersupply of affordable housing in the state," Lim said.

He proposed that the state government study how Singapore's Housing and Development Board managed its public housing. Penang Development Corp should also undertake more land reclamation to develop more affordable homes.

By Business Times (by Looi Sue-Chern) (Posted on 16March2010)

Tuesday, March 16, 2010

CMP to build high-end condos in Johor Baru


An artist’s impression of the Lido Residences which is part of the company’s integrated Lido Boulevard waterfront project

KUALA LUMPUR: Central Malaysian Properties Sdn Bhd (CMP) will be developing high-end condominiums in Johor Baru that may cost about RM1.5mil a unit.

Called the “Lido Residences”, it was part of the company’s integrated Lido Boulevard waterfront project and each unit was expected to be about 1,900 sq ft in size, CMP managing director Datuk Chan Tien Ghee said.

“It (Lido Residences) will comprise 900-odd apartments over a 24-acre estate. The units will be fully furnished and will be facing Johor City as well as Singapore,” he said after a contract signing ceremony between CMP and Jan De Nul (Malaysia) Sdn Bhd yesterday.

Apartment units within the area currently were priced RM700 to RM800 per sq ft, Chan said, adding however that CMP had yet to finalise the price of its condominium units.

“Right now we’re still looking at our pricing.”

CMP has appointed Belgium-based dredging company Jan De Nul to carry out reclamation works at the site.

The deal is worth RM238.6mil. Chan said the works would take 15 months to complete. Once completed, about 94.18 acres would be reclaimed land while 28.17 acres would be on a piled concrete deck.

Preliminary works commenced this month.

On the reclamation, Jan De Nul group managing director J.P.J. De Nul said: “If you have a booming coastal area, what is cheaper than to make your city bigger by gaining a stretch (of land) from the sea?”

According to CMP’s website, Lido Boulevard spans 2.4km along the Tebrau Straits coastal line.

Encompassing an area of 122.35 acres, the project will be divided into six parcels and expected to be completed in 2016.

Chan said the project would have a gross development value of over RM4bil.

CMP is a special-purpose vehicle set up to undertake the development of the Lido Boulevard project.

The company’s main shareholders comprise businessman Tan Sri Vincent Tan Chee Yioun and Chan himself.

The project is a joint venture with Johor State Secretary Inc, an investment holding company of the Johor state government, which is also the land owner.

By The Star

Lido Boulevard eyes RM4b GDV


CENTRAL Malaysian Properties Sdn Bhd (CMP), a private property developer controlled by Berjaya Group's Tan Sri Vincent Tan Chee Yioun, expects its Lido Boulevard waterfront project in Johor Baru to boast of more than RM4 billion in gross development value (GDV) over five years.

CMP will build, among other things, high-end condominiums, hotels, office suites, shopping malls, an indoor snow park, and an art and cultural centre on the 50ha site along the Tebrau Straits.

Managing director Datuk Chan Tien Ghee said CMP will start reclamation works next month.

The integrated project will stretch from the abandoned Lot 1 shopping mall to the office of the Harbour Master.
CMP has hired a private dredging company from the Netherlands, Jan De Nul Group (JND), for the RM238.6 million reclamation job.

It will be one of the largest reclamation projects in the country, Chan said after the signing of a contract agreement between CMP and JND in Kuala Lumpur yesterday.

The reclamation will be the first phase of the Lido Boulevard development. Upon completion at the end of next year, 38ha would have been reclaimed. Another 11ha would be on a piled concrete deck.

The Lido Boulevard will be split into six parcels, with the high-end condominiums coming under the first.

"There will be 900-odd units of high niche condominiums. They will be fully furnished," Chan said.

CMP is finalising the prices, but hinted that it could cost at least RM1.5 million for a 1,900sq ft unit.

Chan pointed out that new high-end apartments in the area were being sold at RM700-RM800 per sq ft.

Tan is the major shareholder of CMP, while Chan, the Johor royal family and the Johor state government are the other shareholders.

JND managing director J.P.J. De Nul expects the reclamation works to be a challenging task, adding, however, that his company had done more challenging jobs in Europe and the Middle East.

Among its prestigious international dredging and reclamation jobs are the Palm Island Dubai in the United Arab Emirates, Jurong Island Phase 4 in Singapore, and construction of a wastewater treatment plant in Brussels, Belgium.

By Business Times

Green strategies to be communicated at Malaysia’s first carbon-neutral property conference


Coming together for a green cause. Minister of Housing and Local Government Y.B. Dato’ Seri Kong Cho Ha (seated, third from left) holding a sample of an environmentally compliant certificate.

REHDA (Real Estate and Housing Developers Association Malaysia) Institute, EAROPH (Eastern Regional Organisation for Planning and Human Settlement) Malaysia, and Sime Darby Property is organising Malaysia’s first carbon-neutral real estate conference - Green Solutions Property Conference 2010.

At a media briefing on the conference on March 11, Minister of Housing and Local Government Y.B. Dato’ Seri Kong Cho Ha stressed on the importance of mitigating climate change and global warming.

“Energy saving technology, rainwater harvesting and so on; these topics will be discussed in detail at the Green Solutions Property Conference. Speakers will talk on various topics and incentives by the government to promote green technology in both building centres and property centres,” Kong added.

He also commended on Sime Darby’s involvement, as it shows industry players’ commitment in supporting our Prime Minister’s call for a 40% GHG (Green House Gases) reduction by 2020.

Mr Lincoln Lee, Chairman of EAROPH GTi as well as the conference’s organising chairman, feels that the conference and its content are both timely and vital to Malaysia’s current building industry.

“40% or more of our carbon footprint is from the building industry. If you go green, it doesn’t mean that it’ll cost you more – in fact it can even make you further revenue. It forms a real shift of paradigm in all industries,” Lee says.

Director of REHDA Institute, Mr Y. K. Wong, believes the element of carbon neutrality will play a major role in the effectiveness of the conference and hopes that it will provide a tangible example of what is demanded of contemporary industry professionals. He says it symbolises the “plausible future trend in housing, namely going green and reducing carbon emissions in the process.”

The conference will be held on April 6 at Sime Darby Convention Centre and will be Malaysia’s first carbon-neutral real estate conference. It will also be included into the Malaysia Book of Records.

There will be seven speakers at the conference and they are:
• Ar Dr Tan Loke Mun, Director of ArchiCentre Sdn Bhd and Chairman of PAM Green Building and Sustainability Committee

• Mr Matthias Gelber, Initiator, Maleki GmbH, Germany

• Mr Jason Pomeroy, Director of Broadway Malyan, Singapore

• Mr Lincoln Lee, Chairman, Council of EAROPH-GTi (Green Technology Innovation) and Executive Director of Lucas Works Sdn Bhd

• Ms Ng Say Guat, Executive Director of Pricewaterhouse Coopers Taxation Service Sdn Bhd

• Mr B. K. Sinha, Founder and Director of C2C Project Managers Sdn Bhd

• Mr Ed Cotter, Head of BREEAM Communities

For more information on Green Solutions Property Conference 2010, call 03-7803 2987 or send an e-mail to syahiidah@rehdainstitute.com / ong_huitse@rehdainstitute.com

By The Star

Land prices smash records in Beijing property frenzy

BEIJING: Two land sales in Beijing have shattered price records and both buyers were state-owned companies, sparking outrage and astonishment at the city's frothy property market, according to Reuters.

The soaring land prices came as worries have mounted about a housing bubble in China, though economists said on Tuesday, March 16 that the latest auction prices reflected peculiarities of the Beijing market and did not necessarily point to nationwide trouble.

China has tweaked taxes and stiffened mortgage rules in rrcent months to cool housing prices and analysts think it may hold off on further property curbs for a while amid signs that these earlier measures have had some success.

But many in the market think the country's third increase this year of banks' required reserves is imminent to counter broader inflationary pressures.

A plot of residential land in Dongsheng, a 15-minute drive from the centre of Beijing, was auctioned for 28,000 yuan ($4,100) per square metre, the highest price ever paid in the city -- and just a fraction below the area's average house price.

At a separate auction, a 185,000-sq m block of residential land deep in suburbia in Yizhuang went for 5.25 billion yuan ($769 million), the most ever paid in a single land transaction in Beijing.

An added wrinkle was that in both cases the buyers were state-owned enterprises (SOEs).

China Ordnance Equipment Group Corporation, a military company, bought the Dongsheng land. CITIC Group, the country's largest financial conglomerate and one which is directly led by the State Council, China's cabinet, bought the Yizhuang plot.

"The SOEs get even wilder. A crazy day for the Beijing land market" screamed the headline of the Chinese-language 21st Century Business Herald.

Private developers have complained that the deck was stacked in favour of state-run firms in Beijing's land auctions because the city required bidders to have registered assets that far outstrip those of some of the biggest listed property companies.

Liu Liyong, a research director at E-House China, a leading real estate service company, said state firms benefit from a close relationship with the government as well as vast capital bases.

"That's why the SOEs can always win the land auctions," Liu said.

Property prices across China rose 10.7 percent in February from a year earlier, though prices have increased far more steeply in certain segments of the market, such as high-end housing in top cities like Beijing and Shanghai.

Land prices have been even hotter, more than doubling over the past year.

Feng Ke, a finance and property professor at Beijing University, said it was only natural for prices to rocket in the capital.

"Land demand far exceeds supply because of the accelerating progress of urbanisation," Feng said.

"Besides, the cost for primary developers in preparing a piece of land, including expenses in relocating residents and land clearance, has also increased in recent years, so it is understandable that land can be sold at such a high price."

But the country's most successful private property developers have been sidelined in the process.

SOHO China, whose avant-garde buildings have made an indelible mark on the centre of Beijing, sat out the auctions.

SOHO chairman Pan Shiyi chided Ren Zhiqiang, chairman of Huayuan Property and China's best-paid property tycoon, for his failed bid, saying there was no point in battling against state-backed firms.

"Mr. Ren did not listen to me, and paid hundreds of millions of yuan in deposits to participate in the bidding," Pan wrote on his blog. "It is not spending money for land but for shame."

Ren replied that he would persevere.

"At least, we are still there," he wrote. "Mr. Pan has no guts to even get in. The auction system has killed all of Pan's confidence and courage." ($1=6.825 Yuan)

By Reuters

Bon Ton sees value in heritage properties

Resort, restaurant and retail specialist Bon Ton Sdn Bhd will continue to work with other tourism players in promoting Penang as the choice destination for cultural and heritage tourists.

It has invested RM5 million in restoring historic shophouses in George Town's heritage enclave in Penang to date.



Bon Ton director Narelle McMurtrie said the company's hotel management arm - Brand Bon Ton Sdn Bhd - is looking at managing more heritage properties comprising boutique residences in Penang.

"We are now looking at managing other people's heritage properties here by entering into management arrangements with them since we are on the lookout for about 20 more rooms to make our current business viable," she told Business Times.

Australian-born McMurtrie, who is synonymous with Langkawi's Bon Ton Resort and the Bon Ton Restaurant in Kuala Lumpur (which has since closed), is now training her eyes on promoting both Langkawi and Penang as destinations to travellers who are in search of rustic-meets-luxury accomodation.
Last year, Bon Ton Sdn Bhd acquired 10 shophouses in George Town's heritage enclave along Lebuh Stewart and Lebuh Armenian.

The shophouses have been converted into boutique residences, retail outlets and a cafe.

In Langkawi, the company has invested some RM12 million where it has been operating Bon Ton Resort since 1994 and more recently, opened a luxury resort called Temple Tree at Pantai Cenang.

Temple Tree is made up of a collection of nine antique houses, ranging from ages 70 to 110 years.

The homes were destined either for demolition or on the brink of collapse when McMurtrie acquired them from their owners.

She then reassembled these homes in Langkawi and rehabilitated them to luxurious resort accomodation with modern amenities.

"The Temple Tree project was made possible with assistance from the Ministry of Tourism, which had helped us obtain a loan from the SME Bank," she said.

Her Penang properties are all shophouses, which used to serve as homes, warehouses and shops dating as far back as 1850.

"We want to offer travellers the 'Penang Experience' by combining the state's rich heritage and food attributes and we are in the midst of preparing a Penang guide to shopping and cafes," McMurtrie said.

"By promoting Penang as a destination to travellers, we want to ensure that the state's economy benefits via a spillover effect and that travellers return to Penang and also promote the attractions by word-of-mouth."

By Business Times

Talam to settle RM241mil debt

PETALING JAYA: Talam Corp has entered into an agreement with Menteri Besar Selangor (Inc) last Friday to settle RM241.4mil owing to the latter via disposal of properties and RM12.7mil cash, it told Bursa Malaysia.

The settlement is expected to be completed within six months after receiving the approval of Talam shareholders or the redemption of the liabilities by MBI, whichever is later.

By The Star

Monday, March 15, 2010

Jaya Upaya sees brisk sales of new bungalows


Lee Cheng Bing with a model of the bungalows

KUALA LUMPUR: Property developer Jaya Upaya Corp Sdn Bhd expects to sell all its boutique bungalows at Milano@Kemuning by the end of this month after receiving overwhelming response during the project’s launch on March 6.

Managing director Lee Cheng Bing told StarBiz the company had already sold 50% of the 38 three-storey boutique bungalows.

“We are optimistic based on the feedback we received during the property’s launch where we managed to attract about 300 walk-in potential buyers and investors.

“With the economy heading for improvement and attractive interest rates from the banks, we should be able to sell all the remaining units by end of this month,” he said.

Lee said the bungalows were priced at RM1.5mil to RM2.3mil for lot sizes ranging from 4,000 to 7,500 sq ft. The project is located near the Kesas Highway.

“A new highway is under development now to connect Kota Kemuning to Shah Alam.

“Milano@Kemuning will be much more accessible once the highway is opened,” he said.

He said the outlook for the property market was improving with most big developers upgrading their developments to come up with more premium products.

“We can see in the areas surrounding Milano@Kemuning that people are still coming to buy properties from the developers though the prices have increased now.

“Our launch that day saw the participation of some buyers in their mid-30s and this is a good sign that more young professional buyers are coming into the market,” he said.

Milano@Kemuning is a gated residential scheme on 3.2ha of freehold land next to Alam Impian township and near Kota Kemuning in Shah Alam.

The project has a gross development value of RM80mil and targets completion by the end of 2011.

By The Star

Naim to launch four residential projects in Sarawak

KUCHING: Naim Holdings Bhd will launch four new residential projects, comprising some 1,000 units with a combined gross development value (GDV) of RM360mil, in Miri and Kuching over the next two years.

Senior director for property Radzali Alision said the projects planned were in Naim’s flagship satellite township – Bandar Baru Permyjaya – in Miri, Desa Ilmu and The Riveria in Samarahan near here.

“Eighteen new designs will be introduced.

“House buyers always look for something new, and they do not mind paying 10% to 20% more for better designs and higher quality building materials,” he told StarBiz.

The new launches will include about 140 apartments in The Riveria that will offer a commanding view of Sungai Kuap and Sungai Merdang.

Radzali said construction work for the RM60mil Permy Mall in Bandar Baru Permyjaya was expected to start in two months. Scheduled to be operational in the third quarter of 2011, the mall will have a hypermarket, 160 shops and a food court. Naim will own and operate the mall, and lease the shops.

Naim is Sarawak’s largest property developer, having built 12,500 houses in Bandar Baru Permyjaya, 800 homes in The Riveria township and 4,000 homes in Desa Ilmu in the past 10 years.

Radzali said about 98% of Naim’s launched residential schemes had been taken up with houses priced below RM300,000 selling well.

Last year, Naim sold 560 houses worth RM160mil compared with 630 units worth RM165mil in 2008.

Radzali said Naim was the first developer in Sarawak to introduce 24-month warranty for houses last July and this had helped boost sales.

“This year, we aim to sell some 800 units. Our focus is still affordable houses for the mass market,” he added.

Naim has a total undeveloped landbank of over 1,000ha with estimated GDV of between RM5bil and RM6bil, including 400ha in Desa Labang in Bintulu. Radzali said the proposed mixed development – housing and commercial – for Desa Labang was now on the drawing board.

“We have identified several parcels of land in high growth areas in Kuching, Sibu, Kota Kinabalu (Sabah) and Peninsular Malaysia for possible mixed developments,” he added.

On the outlook for the Sarawak’s propety market, Radzali said most developers had reported good take-up rates for the new launches of their residential schemes.

By The Star

Talam settles RM241m debt, stock surges

Talam Corp, a Malaysian property developer, said it signed an agreement to repay debts of RM241.4 million owing to the Selangor state government.

Talam will sell its properties to help settle the debts, the company said in a statement today.

The shares of Talam jumped the most in more than four months after the agreement.

The stock surged 17 per cent to 13.5 sen at 2:36 pm local time in Kuala Lumpur trading, set for the steepest gain since November 2.

By Bloomberg

RM180m SSTWO Mall to open in PJ

PROPERTY developer Asian Retail Mall Fund II (ARMF II) will open a RM180 million shopping mall in SS2, Petaling Jaya in the third quarter of this year.

Named SSTWO Mall, ARMF II has appointed DTZ Nawawi Tie Leung Sdn Bhd as the mall’s exclusive leasing agent and centre management team. It has a nett lettable area of almost 470,000 sq ft and houses some 200 shops.

By Business Times

Saturday, March 13, 2010

Sime Darby Property launching new project


Datuk Tunku Putra Badlishah Tunku Annuar with a model of Sime Darby Property’s Seri Pilmoor in Ara Damansara. The high-end residential development will be launched today.

PETALING JAYA: Sime Darby Property Bhd plans to launch at least one project a month in the next six months. It is launching a high-end residential development called Seri Pilmoor in Ara Damansara today.

The project, with a gross development value of RM469mil, comprises 74 bungalow units and 34 semi-detached homes. The bungalows are priced from RM4.57mil while the semi-detached units start from RM2.8mil.

Managing director Datuk Tunku Putra Badlishah Tunku Annuar said the company targeted to sell all the units within two years, but added that the full take-up could be sooner.

“We’ve been fortunate that our recent projects have all achieved 80% sales rate within three months of launching,” he said at a preview of Seri Pilmoor yesterday.

“Seri Pilmoor is the last freehold residential project to be launched in Ara Damansara. I’m positive about sales for this project. The feedback has been good,” he said.

Sime Darby Property is initially launching 34 units each of the bungalows and semi-detached homes. Tunku Badlishah said a decision had yet to be made on when it would launch the remaining bungalow units.

Sime Darby Property is also launching a project this weekend in Denai Alam, sited along the Guthrie Corridor Expressway and about 5km north of Bukit Jelutong.

Tunku Badlishah said the company had planned to launch the project three months earlier but it was delayed because it wanted to add new features to the homes.

On another note, he said the company was in constant negotiations with other parties to explore potential partnerships. It recently tied up with Sunrise Bhd to develop a RM1bil commercial development in Bukit Jelutong.

“There are many companies that have approached us. We’re open to joint ventures and we continue to have negotiations with several parties that are interested.

“But there has to be some synergy involved through the JVs and it’s something that we continue to pursue,” he said.

Tunku Badlishah said Sime Darby Property, the property arm of Sime Darby Bhd, accounted for 12% of group revenue.

“Our plantation division is very large and it’s hard to catch up. If palm oil prices go up this year, we’ll fall further behind.”

He said Sime Darby Property had a profit margin of 28%.

By The Star

Sime Darby Prop expects to maintain profit margin

SIME Darby Property Bhd expects to maintain its 28 per cent profit margin for its developments this year.

Its managing director Datuk Tunku Putra Badlishah said he is confident of achieving that level as the company is among the best in the industry, and would help push it forward.



He said by maintaining profit margin at 28 per cent, coupled with more launches this year, the company's property division could contribute more to Sime Darby Bhd's overall net profit.

The division, which has 10 on-going projects worth over RM15 billion, contributed 12 per cent to the group's net profit last year.
Sime Darby Property is also involved in property investment, but contribution from this is still minimal.

"We were number one last year in terms of profitability among the industry players and hope to maintain that," said Tunku Putra Badlishah.

He said the company will do better this year and the 80 per cent sales achieved from new launches in the last quarter was testimony.

Sime Darby Property will launch new products monthly for the next six months as its confident of the market, Tunku Putra Badlishah said.

Yesterday, it unveiled its first landed strata development in Ara Damansara, Selangor, called "Seri Pilmoor", worth RM469 million.

Additionally, it will launch new houses in Denai Alam and USJ Heights.

On Seri Pilmoor, the company hopes to sell all the units in less than 24 months.

The project is slated for completion by March 2013. It features 74 bungalows from 6,500 sq ft and 34 semi-detached homes from 4,600 sq ft.

The first phase of the project, to be launched this month, will include 34 semi-dees and 34 bungalows, priced from RM2.8 million and RM4.4 million respectively.

By Business Times

Going green with buildings

Goldis and Ken Holdings believe this is where property development is heading.

There was a time some 20 years ago when being green was fashionable. Many felt it was just hype; like most passing fads, it would go away. It did not.

Instead, being green took on different hues. While issues like forest degradation and saving turtles continue to matter, being green has taken on a new persona. It has gone corporate.


GTower’s green rooftop. The grass is irrigated by harvested rain water. Inset: Colin Ng

In the property sector, the green movement is making its mark on buildings. Two current examples are Goldis Bhd’s GTower, a Grade A++ office building in Jalan Tun Razak, and Ken Holdings Bhd’s Ken Bangsar, a serviced apartment on commercial land. Both are commercial developments. And there are others.

GTower comprises an office and executive suites, a 180-room business hotel and a club that caters to its guests and tenants, while Ken Bangsar has over 80 units.

Going green has been an exciting challenge and adventure for Goldis head of corporate investments Colin Ng and Ken Holdings managing director Kenny Tan as it involves not only the hardware but the software as well, such as sourcing for carpets and planter boxes made with recyclable materials.

“We initially wanted to build an energy-efficient building and were advised to just ‘go green’ instead. The effect of this was the cost of glass used tripled, cost of air-conditioning system and lighting went up by a third each,” says Ng.

Says Tan: “A green building always has higher value. This is the trend moving forward for property developers. Caring for the earth is a social responsibility of all parties.”

There are five pillars to satisfy in order to get the coveted Green Mark award. Audits are done every two years. The pillars are:

Energy efficiency

This includes air-conditioning, heating and lighting. Air-conditioning takes up as much as 45% of commercial energy consumption. That part of the building which bears the greater heat from the sun will have more concrete and less glass.

Incidentally, GTower is among the first to use double glaze which traps layers of air in between. This helps reduce noise pollution and heat.

Generally, buildings relying more on natural lighting will use more glass. This means there will be greater usage of air-conditioning. To solve this, GTower advocated the use of an energy-efficient air-conditioning system which includes a chiller plant system.

GTower will also have motion sensors in toilets and staircases. Lights will automatically switch on when sensors are activated by movements in these areas.

Lobby and car parks will have photo sensors. Escalators and lifts will have dual mode systems in which escalators will operate on a slower speed when not in use. For parts of the building that gets direct heat from the sun, less glass is used.

Ng says some of the lighting used is about RM200 a piece compared to non-energy saving ones priced at RM30 a piece.

The company discovered that being green does not stop with the hardware. In order to get recognition from Singapore’s Green Mark scheme, carpets, timber, furniture and its fit-out had to be made from recyclable materials.

For example, its timber deck is made up of timber and 60% rice husk. Some of its planter boxes are made from timber doors recycled by a Chinese company.

The wooden strips on part of its club floor and walls come from the timber deck in Menara Tan & Tan. The buzzword, says Ng, is recycle and reuse.

To reduce heat, the top of roofs will also be landscaped and some walls – or vertical greening – like the one in the lobby, will be embellished with real plants using an irrigation grid-like system from Canada.

Over at Ken Bangsar, its key features includes the orientation and sunshade of the building, the type of paint used, the noise level and water consumption among others.

Putting his engineering knowledge to use, Ken Holdings executive director Sam Tan created an air tunnel in the building’s lobby area to ensure a continuous cool environment.

To save energy, motion sensors are used. As air conditioning makes up the bulk of energy usage in a household, Ken Bangsar used only multi-split inverters for its air conditioners to ensure 60% energy savings.

Water efficiency

Because of the country’s large amount of rainfall, GTower will harvest rain water to irrigate the landscaping and vertical greening. The idea is to reduce the use of potable water for its rooftop gardens. The company will also collect condensate water from its air-conditioning units.

Ng also claims that GTower has water-efficient fittings in toilets, shower and pantries.

Ken Bangsar is the first residential development to provide water closets (WCs) with eco-friendly and water-efficient built-in bidet seat covers. The penthouse units enjoy the luxury of the world’s most technologically advanced WC, the Toto Neorest, chalking up yet another first in the country.

Site and project management

GTower will also be linked to the light rail transit (LRT) line for the convenience of guests, and waste will be recycled. Says Ng: “Our proximity to the LRT is a green factor because we want to encourage our guests to reduce emission of carbon monoxide (CO). Our car parks will have special spaces for hybrid cars.”

Like GTower, Ken Bangsar also boasts extensive landscaping. Right from the start, a sunk cost of RM500,000 was spent building a reinforced concrete wall to cover up two unsightly reservoirs as well as landscape the entire 200 metres along Ken Bangsar.

Indoor environmental quality

Goldis has also installed a system to monitor the level of CO in basement car parks. Once it exceeds a certain level, the system will pump fresh air into the basement car parks. It will also have a system to monitor the carbon dioxide inside the building.

Innovative installations

The Green Mark scheme also looks at other environment-friendly measures such as the use of salt chlorinators in swimming pools, the presence of a recycling corner and various other cooling systems.

Ng says the cost of constructing GTower is marginally higher (15% more) than that of a non-green building. He says if the company had embarked on this project five years ago, the cost would have been lower.

Kenny says developers are initially apprehensive about constructing green buildings as the cost of construction is easily 18% to 20% higher.

Those that spearhead the movement may face challenges, like Ng, who had to source for fittings made from recycled materials from around the world, simply because Malaysia did not have them.

Nevertheless, both companies went into it despite the challenges because they believe this is where the green movement is heading.

By The Star

Determining property prices the healthy way

BANK Negara’s decision to raise the overnight policy rate (OPR) by 25 basis points on March 4 must have jolted many people out of their slumber into realising that the days of low lending rates may be numbered.

While some Malaysians, especially those who are risk-averse and prefer to keep their savings in banks, are rejoicing that interest rates on deposits are on the way up, there are those who must be apprehensive that they will have to fork out higher loan interest payments.

Those in the second group, including corporate and retail borrowers, should recognise that the low interest rates that they had been enjoying for close to two years came at a cost.

Malaysians generally have a high propensity to save and the all-time low interest rates have been frowned upon by savers, especially the retirees who are mostly dependent on their interest income to get by in their golden years.

It is only fair that they be compensated for their prudence – a strong trait among Asians that may have saved the region from further financial quagmire brought on by a widening sovereign debt crisis in some western economies.

The recent OPR hike will certainly not be the only adjustment by the central bank, considering the country’s lending rates are still at record lows.

We can expect more upward adjustments in the coming months as there is still room for rates to rise at least another 50 basis points should Bank Negara act in response to a stronger local economy.

Normalising the interest rates by allowing it to be decided by actual market forces of demand and supply is certainly more healthy.

Although there are now more avenues to invest one’s savings, property is clearly a favourite.

Most of the big property companies are raking in record sales and some of the projects, especially those in Penang and the Klang Valley, are once again selling like “hot cakes”.

Although there is no property bubble – a situation where prices escalate to artificially high levels that do not reflect the actual market fundamentals of demand and supply – there may be a chance of this happening if we are not careful.

We only have to look at the many condominium blocks in the Kuala Lumpur City Centre locality. Their prices have fallen by up to 30% as demand for high-rise residences is still quite lethargic, with no signs of a recovery anytime soon.

The huge price correction can be attributed to a high percentage of investors and speculators in that market segment compared with the owner-occupier buyers.

Hence, there is a need to rein in speculation in our property market. Higher interest rates also signify confidence that the market will hold out well.

It will complement the move to reinstate the real property gains tax, albeit at a flat 5% for all property sales within the first five years of purchase.

Curbing excessive speculation will help prevent overheating in the market.

Property prices should be determined by actual demand and supply forces and not by artificial means.

● Deputy news editor Angie Ng hopes the normalisation of interest rates will ensure a more balanced and healthy property market – one that is not too expensive for the common folk.

By The Star

Encorp proposes to raise RM134mil

KUALA LUMPUR: Encorp Bhd announced yesterday that it plans to raise RM134.1mil for new projects and working capital.

In a filing with Bursa Malaysia, Encorp said it proposed to make a renounceable rights issue and a placement to identified investors of up to RM134.1mil of nominal value five-year 6% redeemable convertible secured loan stocks (RCSLS) at RM1 each.

A free detachable warrant will be given for every two RCSLS. The coupon rate of RCSLS is payable on a quarterly basis. The RCSLS is convertible into fully paid new Encorp shares during the conversion period, with an option for RCSLS holders to require Encorp to redeem part or all outstanding units at the end of the third year.


Datuk Seri Effendi Norwawi … ‘We will continue on the success of our current flagship development at Encorp Strand.’

Chairman Datuk Seri Effendi Norwawi said in a statement that the RSCLS would allow shareholders to increase their equity and participation in the company’s future growth.

On new projects, he said: “We will continue on the success of our current flagship development at Encorp Strand, Kota Damansara, for which buyers have enjoyed high capital appreciation from a distinctive project concept, innovative design, quality finishes and timely delivery.”

He said Encorp aimed to incorporate the latest ideas and technology to create excellent value for customers.

Effendi said the company was encouraged that two of its latest products – Garden Office @ Encorp Strand and Camelia in Cahaya Alam – respectively were already 71% and 91% sold just from soft launches.

“The next two to five years will see the completion of more features in Encorp Strand to make it the most vibrant commercial development in Petaling Jaya,” he said.

Encorp’s property projects have a combined gross development value of RM2bil, while its construction division currently has booked work amounting to RM1.6bil.

Encorp’s business expansion follows Effendi’s return to the private sector in September 2009 to lead the company, after holding several ministerial positions.

Effendi said he had set high challenges and benchmarks for his team to focus on achieving highest quality, standards, value and service (QSVS).

“Internally, we are aligning all efforts to our common vision for Encorp to be a frontrunner in providing QSVS unrivalled by others. If you buy an Encorp product, you are guaranteed QSVS,” he said, adding that the new focus had resulted in a thorough review of processes to match and exceed industry standards.

“These have included a re-look at designs to make future projects more unique and innovative to give customers exciting and value-for-money products,” Effendi said.

Similarly, the incorporation of new systems had enabled online tracking of construction progress to ensure Encorp delivered on time or ahead of schedule, while running at optimal cost and providing excellent quality, he added.

By The Star

Tender to redevelop Carcosa called off


It is understood that at least nine bids for the rejuvenation of the 98-year-old boutique hotel, Carcosa Seri Negara, have been received

The government has called off the tender for the redevelopment of Carcosa Seri Negara, a boutique heritage hotel in Kuala Lumpur, barely five months after calling and receiving bids for it.

The move came as a surprise to bidders who have been waiting the outcome of the tender offer. When contacted, some bidders said that they have yet to receive the government's notification.

In a letter dated March 4 this year addressed to Business Times, the Property and Land Management Division of the Prime Minister's Department (BPH) said that it has decided to cancel the invitation for request for proposal (RFP) advertised on October 2 2009. It did not give a reason for the cancellation.

It said that a new date for a RFP will be made in the future and the parties will be invited to put forward their proposals.
The letter, signed by the director-general Hasnol Zam Zam Ahmad, said that the department apologises for the inconvenience caused.

It is understood that the department had received at least nine bids for the rejuvenation of the 98-year-old boutique hotel.

Hasnol could not be reached for comment yesterday.

It remains unclear why the bid has been cancelled. However, industry observers said there may have been some objections and concerns from an environmental and preservation point from the public as Carcosa is a heritage site and is located within a green lung of the city.

As such, the new requirements may be more restrictive, a source said.

During a briefing on October 9 2009, an officer from BPH had announced that bids were to be submitted by October 29.

Some 17 people had attended the briefing. They had lamented that the timeframe to submit the proposal was too short. Following this, the date was extended by two weeks to November 13.

The RFP document highlighted that the proposer must bear all upgrading costs and pay a monthly rental. The developer/operator must also propose a profit-sharing deal with the government.

The government had wanted bids from candidates with strong financial standing, wide experience and recognition in hotel and resort management and one with a chain of hotels/ resorts in Malaysia and abroad.

The applicant should own a hotel brand and have a proven administrative and management track record.

The same officer had also announced that Carcosa will be closed for renovation from January 1 this year and the duration of the closure will depend on the extent of work that was proposed.

All the investment was to come from the private sector, unlike previously when the government paid for all the renovation and refurbishment.

By Business Times

Naim plans 'Solar Oasis' concept

PROPERTY developer and builder Naim Holdings Bhd is working on a concept for a development in Libya with its General Board of Privatisation and Investment (GBPI).

"We will use the next six months to come up with the concept," Naim managing director Datuk Hasmi Hasnan told reporters after signing a memorandum of understanding with GBPI in Kuala Lumpur yesterday.

GBPI, which owns 100ha 30km from the Tripoli City Centre, is planning a mixed development, known as "Solar Oasis".

The Solar Oasis Science and Business Park will be the first of its kind in Libya, aimed at being a hub for alternative and renewable energy, GBPI board chairman Dr Gamal N. Al Lamushe said. Lamushe is also Libya's Minister of Privatisation and Investment.

By Business Times

Hektar REIT sells land to Govt

KUALA LUMPUR: Hektar Asset Management Sdn Bhd, the manager for Hektar REIT (real estate investment trust), yesterday announced the Government has acquired 0.1331 ha from Hektar REIT.

The deal, done under the Land Acquisition Act 1960, was for the proposed extension of the Kelana Jaya Light Rail Transit Phase Two project in Subang Jaya.

The land formed part of the 4.362 ha on which the Subang Parade Shopping Centre is located and which belong to Hektar REIT, the company said in a filing with Bursa Malaysia.

By Bernama

Friday, March 12, 2010

Sime property unit eyes 28pc profit margin

Sime Darby Property Bhd hopes to maintain its 28 per cent profit margin for its current financial year, said managing director Datuk Tunku Putra Badlishah.

"The margin is among the best in the industry," he said, adding that lady luck has been with Sime Darby Property as all its launches have had good sales.

"All our recent launches have been very successful, with 80 per cent sales rate within three months of the launch," he said after unveiling its high-end property development in Ara Damansara named "Seri Pilmoor".

Tomorrow it is unveiling another project and has at least one new property launch for the next six months as it has the confidence in the market.
Sime Darby Property contributed about 12 per cent in profit for the group.

"We hope to grow that. We were No. 1 in terms of profitability in the overall property industry and we hope to maintain that as well," he said.

On possible joint venture for property development, Tunku Putra said: "I think given the size of our land bank and the strategies that I have outlined, there are many companies that have approached us."

The company had negotiations with several interest parties, but the main criteria is that there should be some synergy in what the company does.

However, he declined to name the companies that are in negotiations now.

Sime Darby Property has the largest land bank in the country, totalling 36,000 acres.

Seri Pilmoor has a gross development value of RM469 million, it was revealed at a special preview today.

The project comprises 74 bungalow retreats from 6,500 sq ft and 34 semi-detached sanctuaries from 4,600 sq feet ensconced within 28.5 acres of landscaped elevated freehold land.

"The project was up in the website for three months and has attracted about 1,600 interest parties of a good mix but mainly locals," said Tunku Putra.

Hence, the take-up is expected to be good based on the interest.

Prices for the bungalows start from RM4.57 million with three design types and six different rooftop pavillion layouts, while the semi-detached units begin from RM2.8 million with two different pavillion layouts.

The units will be open for sale in phases, he said.

By Bernama

Green strategy for construction sector to be developed

A GREEN strategy approach tailored to suit the country's construction industry is expected to be developed at an upcoming carbon neutral conference. This is in line with the Prime Minister's commitment for a 40 per cent Greenhouse gas reduction by 2020.

Among the suggestions that will be put forward are to encourage buildings to incorporate solar panels, water harvesting and other shading materials, monitor earth work, cutting and replanting initiatives.

"We hope buildings will incorporate as many solar panels to harness solar energy because this is the way forward in doing our part to curb the global warming," said Eastern Regional Organisation for Planning and Human Settlement (Earoph) Malaysia deputy president and Rehda Institute chairman of the board of trustee, Datuk Eddy Chen Lok Loi, in Kuala Lumpur yesterday.

Rehda, Earoph Green Technology Innovation and Sime Darby Property are jointly organising Malaysia's first carbon neutral real estate conference: "The Green Solutions Property Conference 2010", which will be held on April 6 in Kuala Lumpur.
The conference is aimed at bringing together property developers, architects, project managers and green technology inventors to share crucial information on green strategies and the implication of green development.

It will also explore various means and measures the industry can adopt to play a more active role in being more environmentally responsible.

Chen said the conference is timely and vital to Malaysia's building industry.

He hopes that it will be a platform for participants to share their experience and knowledge in the pursuit to meet the international sustainability standards.

By Business Times

China property boom 'not bubble'

SINGAPORE: CapitaLand Ltd, which has Chinese properties valued at more than US$14 billion (US$1 = RM3.32), said demand in China is "strong" and the real estate boom can't be called a bubble.

Still, the Singapore-based developer said it was "comforting" that the Chinese government is taking steps to rein in the market, according to a CapitaLand presentation filed to the Singapore Exchange yesterday.

CapitaLand, Southeast Asia's biggest developer, has said it plans to expand its China business to 45 per cent of its operations within five years.

China's property prices rose at the fastest pace in almost two years in February, adding urgency to the government's efforts to damp speculation and increase the amount of affordable housing.
Residential and commercial real-estate prices in 70 cities climbed 10.7 per cent from a year earlier, the statistics bureau said on its website on Wednesday, topping a gain of 9.5 per cent in January.

To cool speculation, China is requiring a down payment for land purchases equal to 50 per cent of a plot's price, the Ministry of Land and Resources said on its website late on Wednesday.

The government in January re-imposed a tax on homes sold within five years of their purchase, after having cut the taxable period to two years in January 2009 to bolster a then-flaging market.

Bank of China Ltd said on February 3 that it had reduced discounts for some mortgages, citing concern about rising property market risks.

By Bloomberg

SP Setia bags Vietnam deal

PROPERTY developer SP Setia Bhd has in principle bagged a property project from Vietnam's Investment and Industrial Development Corp to develop a 10.8ha land in Binh Duong province,Vietnam, for a 50-year term.

In its filing to Bursa Malaysia yesterday, SP Setia said its subsidiary Setia Lai Thieu Ltd has received an investment certificate from the People's Committee of the Binh Doung Province for the establishment of Setia Lai Thieu One Member Co Ltd with a charter capital of US$6.5 million (US$1 = RM3.32).

Setia Lai Thieu One Member Co will undertake the development of Eco-Xuan Lai Thieu, which features shop houses, terrace houses, semi-detached houses, commercial centres, club house and apartments.

By Business Times

TA to sell S’pore hotel to unit

PETALING JAYA: TA Enterprise Bhd (TAE) has proposed to dispose of a 100%-owned four-star hotel in Singapore to its property arm TA Global Bhd for shares in a deal worth RM651.78mil.

Under the deal, TA Gobal will assume RM398.6mil worth of loans obtained by TAE as part of the purchase consideration.

The final purchase amount of RM253.18mil will be settled via the issuance of 506.36 million new shares in TA Global at 50 sen each to TAE.

“The proposed disposal would enable TAE to streamline its two main core businesses – financial services and property and hospitality division,” it said.

TAE group had, in October 2009, completed its reorganisation exercise which led to the listing of TA Global.

By The Star

Naim to sign pact for Libyan building project

NAIM Holdings Bhd, a Malaysian builder, said it will sign a preliminary agreement to build various facilities and amenities for a project known as Solar Oasis in Libya.

Naim will sign the agreement today in Kuala Lumpur, the company said in an e-mailed statement.

The project is on 100 hectares of land, 30 kilometers from Libya’s Tripoli city center, it said.

By Bloomberg

Thursday, March 11, 2010

Idea House expected to use GE tech, says Sime


Sime Darby Property Bhd, the property arm of Sime Darby Bhd, is expected to sign a partnership agreement with General Electric Co within the next two to three weeks to deploy its sustainable products and technology for the Idea House project in Shah Alam, Selangor.

The property developer is setting up the multi-million ringgit two-storey Idea House at its Denai Alam township.

The Idea House, believed to be the first of its kind in the country, is a prototype dwelling where Sime Darby Property will systematically adopt the strategies used in the construction of the house for its future projects, demonstrating its commitment to create sustainable futures.

Conceived as a test bed for new ideas, the house showcases the latest in sustainable architecture in the buildings' quest to become the first carbon neutral residence in Southeast Asia.

It is understood that Sime Darby Property will also sign a similar agreement with Cisco Systems, Inc.
Sime Darby Property managing director Datuk Tunku Putra Badlishah told Business Times that the company is in talks with several parties, but did not name them.

He said the Idea House will be ready and launched in May 2010.

He added that one of the most significant achievements for Sime Darby Property in the past three years was the development of the house.

The house will showcase the latest in construction solution and system applications, which will be an example of how green architecture, good design and sustainable living can work harmoniously.

It will be a self-sustaining building that generates power from the sun and reuse harvested rain water, built entirely on the principle of modular construction where the user would be able to expand and contract the building as the need arises.

By Business Times

LBS Bina plans more launches

KUALA LANGAT: LBS Bina Group Bhd is set to launch more new projects this year, prompted by the pickup signs from the property market and better gross domestic product (GDP) growth prediction by the Government, said managing director Datuk Lim Hock San.


Datuk Lim Hock San

“In view of such good sentiments, we plan to launch more new projects at Bandar Saujana Putra, Puchong, Batu Pahat and Cameron Highlands.

“We will, however, focus mostly on integrated township Bandar Saujana Putra,” he told reporters yesterday after the launch of the 88-unit first phase of Ivory Residences at Bandar Saujana Putra here.

The group would continue to build more affordable houses without compromising the quality of the products, Lim said.

“This is what we are doing at Bandar Saujana Putra, offering buyers affordable homes such as link-houses or semi-detached units,” he said.

Ivory Residences comprises 376 semi-detached cluster link units with built-up of 1,722 sq ft and priced from RM339,900 to RM426,100. Bumiputra purchasers are offered a 7% discount.

Lim said Ivory Residences would be developed in three phases with the first phase scheduled for completion in two years or earlier.

He also said the group had extended its special housing package called “LBS Hassle Free Home Ownership” to the purchasers.

The scheme allows the buyers to pay a 10% deposit upon signing of the sales and purchase agreement and the balance of 90% would be financed by financial institutions for qualified purchasers where the loan interest incurred during construction would be borne by the developer.

Furthermore, Lim said purchasers of Ivory Residences would be given 5% rebate.

Spanning over 835 acres, Bandar Saujana Putra is located along the Elite highway and in the hub of the Southern Corridor of Selangor.

To date, more than 4,800 residential and commercial properties with a total gross development value of RM500mil have been completed and delivered to purchasers.

By The Star

Gamuda Land in RM6bil Vietnam venture

PETALING JAYA: Gamuda Bhd’s wholly-owned unit, Gamuda Land (HCMC) Sdn Bhd, has entered into a joint venture with its Vietnamese partner, Sai Gon Thuong Tin Real Estate Joint Stock Co (Sacomreal) to undertake a RM6bil project in Tan Phu District, about 9km from the central business district of Ho Chi Minh City.

The company yesterday signed a shares-sale agreement with Sacomreal for the proposed acquisition of a 60% equity interest in Saigon Thuong Tin Tan Thang Investment Real Estate Joint Stock Co (Tan Thang Co) for a cash consideration of US$82.8mil.


Chow Chee Wah ...’confident project will do well’

Tan Thang has the rights for the investment and construction of a parcel of 825,216.5 sq m land into a residential, sports and educational complex with an estimated gross development value of RM6bil.

The project will comprise 7,000 units of medium-end and premium apartments with built-up from 700 to 1,500 sq ft, and 37,000 sq m of commercial space.

The apartments will initially be priced from US$900 to US$1,100 per sq m while the commercial space will have an average price of US$2,650 per sq m.

According to Gamuda Land managing director Chow Chee Wah, some 80% of the project would comprise residences that would be undertaken in seven parcels.

“The 82ha for the project is one of the last sizeable land parcels available in Ho Chi Minh City. Our goal is to meet the needs of Vietnamese who want good value-for-money products and prefer innovative lifestyle projects,” he told StarBiz.

The master plan for the development has been approved and the project is expected to commence in the third quarter of this year and will take seven to eight years.

Chow said besides a good concept, facilities and layout, the project’s unique selling proposition would be a 20ha integrated park.

“We are confident the project will do well as it caters to the growing demand for quality residences in line with the rapid urbanisation and rising per capita income among the Vietnamese.

“Our target markets include young executives, professionals and mid-level management executives,” he added.

Close to 65% of Vietnam’s 87 million population are aged 35 years and below. Ho Chi Minh City has a population of more than nine million and 60,000 expatriates.

There are also the Viet Kieus - Vietnamese who are residing abroad - who are also buying property for their own use and for investment.

Chow said the dong’s devaluation had contributed to more Vietnamese resorting to property investment as a reliable savings instrument instead of saving their money in the bank.

With the upcoming closure of all gold trading floors in Vietnam at the end of this month, there will also be a re-channelling of capital flows into the property market.

Sacomreal was previously involved in providing real estate services but has since expanded to developing and marketing of high-quality apartments.

By The Star

BAE arbitration claim may hit Gamuda, WCT earnings

PETALING JAYA: The arbitration claim by Bahrain Asphalt Establishment BSC (BAE) amounting to 109.27 milion Qatari riyal (RM101.06mil) against the Gamuda Bhd-WCT Bhd joint venture (JV) in Qatar may have an impact on both the Malaysian companies’ earnings, according to analysts.

OSK Research in its report yesterday said the claim by BAE was “not good news.”

It said the arbitration could be long drawn, based on WCT’s ongoing arbitration with Dubai’s Meydan LLC, where the latter had cancelled a deal to build a race cource there. The claim has been pending since early last year.

“Assuming the (BAE) claims are made in the current financial year, our FY10 earnings (for WCT) forecast would be reduced by 29%,” said OSK.

The research house forecasts WCT to record a net profit of RM171mil on revenue of RM2.6bil for the financial year ending Dec 31 (FY10).

It forecasts Gamuda’s earnings would be reduced by 17.6% in the financial year ending July 31 (FY10). The research house forecasts a net profit of RM292.6mil on revenue of RM2.96bil for the company.

To recap, Gamuda and WCT said in separate statements on Tuesday that the claim was over disputes in their sub-contract for the granular sub-base and flexible pavement works in the construction of the 43km new Dukhan Highway from Shahaniya to Zekreet in Qatar.

Gamuda’s and WCT’s interests in the JV are in the proportions of 51% and 49% respectively.

BAE is claiming from the Gamuda-WCT JV the total quantified sum of RM101.06mil comprising 94.87 milion riyal for alleged prolongation, escalation, collateral and associated costs for 728 days’ delay in completion of the sub-contract works; 13.43 million riyal for alleged overcharge/wrongful deductions; and 964,969 riyal for alleged wrongful deduction for supply of bitumen.

It is also claiming further unquantified sums for legal costs, arbitration costs, and interest.

Pursuant to the announcement, Gamuda’s shares fell two sen to RM2.79, while WCT lost nine sen to RM2.72 the same day.

Gamuda’s shares were unchanged while WCT fell four sen to RM2.68 yesterday.

“The fact that WCT’s shares have fallen is indicative that shareholders fear that there may be an impact,” said an analyst from a local bank-backed brokerage.

In their respective statements on Tuesday, Gamuda and WCT said they were of the opinion that the request for arbitration was pre-mature as the preconditions stipulated in the arbitration clause had not been met.

By The Star

BCB buys 5-acre land

PETALING JAYA: Property developer BCB Bhd has acquired a five-acre plot of freehold vacant land in the mukim of Batu in Kuala Lumpur for RM51mil from co-owners Warta Development Sdn Bhd and Yap Khay Cheong & Sons Realty Sdn Bhd.

The company said in a filing with Bursa Malaysia that it had entered into the sale and purchase agreement with the owners yesterday.

By The Star

Wednesday, March 10, 2010

Bolton gears for RM1b property launches

PROPERTY developer Bolton Bhd will launch four projects worth RM1 billion this year as it is bullish on the market, its chief said.

Executive chairman Datuk Azman Yahya expects its property sales to improve 50 per cent next year to some RM425 million.



For the financial year ending March 31 2010, Bolton expects to achieve RM283 million in property sales.

"During the slowdown two years ago, we were concerned about the ability of banks to lend, so we reduced our launches. But surprisingly, we came out of the global slowdown unscathed and the pick-up (in economy and property) has been good.
"Our sales improved in the last two quarters and we are seeing a pent-up demand," Azman said.

He said that with a low gearing and some RM60 million cash in hand coupled with new sales, Bolton was on a good financial footing to launch new projects.

It has 240ha of landbank in the Klang Valley and Penang, with expected sales of more than RM2 billion to drive the company's growth.

In the financial year ended March 31 2009, the developer posted net profit of RM18.3 million on revenue of RM292 million. Property sales contributed the bulk of earnings, with the rest coming from its investments in properties.

On the redevelopment of the 12-storey "Bolton Court" in Bukit Ceylon, Kuala Lumpur, Azman said the company will start building a 33-storey condominium block on the site six months from now, to be named "sixceylon".

"Although Bolton Court contributes positively to our investment earnings, we feel it's time to redevelop it to create a new landmark in Bukit Ceylon," he said.

The company built Bolton Court, comprising 20 condominium units, in the mid-1970s and retained the apartments for recurring income.

Sixceylon will feature 215 condominium units with built-ups ranging from 696 sq ft to 1,555 sq ft.

At the unveiling yesterday, Azman said the units will be priced from RM750 per sq ft to RM900 per sq ft each, or from RM600,000 to RM1.2 million. In comparison, prices of new residential units in Bukit Ceylon range between RM900 per sq ft and RM1,100 per sq ft.

"Based on feedback, I am confident we will have a market for sixceylon. We are targeting foreigners and young Malaysians," Azman said, adding that investors can expect 7-8 per cent returns.

Sixceylon will be launched to the public in June, following which Bolton will introduce "Wharf", a mixed waterfront development in Puchong, Selangor, and "Arata" at Kenny Hills and "51 Gurney" at Persiaran Gurney in Kuala Lumpur.

By Business Times

TH, Naza in property tie-up

SUBANG JAYA: TH Properties Sdn Bhd and Naza Properties Sdn Bhd have formed a strategic alliance to develop a high-end residential project with a gross development value of RM100mil.


Zaharuddin Saidon (left) exchanging documents with Datuk S.M. Faisal S.M. Nasimuddin. With them is TH Properties chairman Datuk Azizan Abdul Rahman.

TH Properties chief executive officer Zaharuddin Saidon said the project would involve 52 single and double-storey luxury bungalows with Italian concept in Bandar Enstek, which borders Negri Sembilan and Selangor.

“We plan to launch this project in June,” he told a press conference after the signing of a memorandum of understanding (MoU) between TH Properties and Naza Group yesterday.

TH Properties, the development manager of Bandar Enstek, is a wholly-owned subsidiary of Lembaga Tabung Haji while Naza Properties is a unit of Naza Group.

Naza Group joint group executive chairman Datuk S.M. Faisal S.M. Nasimuddin said the company was exploring the possibility to bundle the luxury property products with cars under the Naza Group.

“The type of cars will depend on the demographic of the buyers and we are in the midst in finalising the details,” he said.

Faisal pointed out that the synergy between two companies promises endless possibilities and there were many aspects that they could share. “The MoU also marks the collaboration between TH Properties and Naza Group in identifying and participating in various fields in the future,” he said.

Faisal said future collaboration could be in any field that Naza Group was currently involved such as auto, finance, property management, insurance, plantations, agriculture and transportation.

“This (signing of MoU) is just a starting point and we are in the midst of identifying more projects to work together,” he added.

By The Star

Naza, TH Properties team up


NAZA Group of Companies and TH Properties Sdn Bhd have agreed to work together in identifying and participating in various initiatives that the two can collaborate in.

Naza signed a memorandum of understanding with TH Properties on this matter yesterday.

The first venture involves the development of 52 high-end residential enclave bungalows with a gross development value of RM100 million at Bandar Enstek, Selangor.

Naza Properties Sdn Bhd, a company under the Naza group, and TH Properties are expected to jointly develop the luxury bungalows.
It is understood that the project, which is specifically targeted at the Malaysia My Second Home (MM2H) market, will see the properties bundled with vehicles from Naza.

"We are still working on the mechanism of partnership, but the idea is to provide lifestyle solutions for buyers of the properties," Naza Group joint group executive chairman Datuk SM Faisal Tan Sri SM Nasimuddin told reporters in Petaling Jaya yesterday.

He declined to reveal which of Naza's dealerships would be involved in the deal.

Naza holds the distributorship for Maserati, Ferrari, Chevrolet, Kia and Peugeot cars in Malaysia.

The Italian-inspired designs for the luxury bungalows bodes well with Naza, as it has several luxury brands under its stable.

"I believe this is an avenue that we can cooperate in to provide the ultimate luxury experience within the project's framework," Faisal said.

The home with a car/bike promotion is especially targeted at the MM2H market due to the unique nature of the programme that allows foreigners to purchase a new car made or assembled in Malaysia, and be exempted from paying excise duty and sales tax on the new car.

"The synergy between our two companies promises endless possibilities. There are many aspects that we could share with each other, especially with each of these companies having varying experiences and capabilities," Faisal said.

On the development of Bandar Enstek, TH Properties chief executive officer Zaharuddin Saidon said, 30 per cent of the 586.38ha it covers have been developed and sold.

By Business Times

Gamuda eyes RM6b project in Vietnam via US$82.8m acquisition

KUALA LUMPUR: GAMUDA BHD is buying a 60% stake in Vietnam's Tan Thang Company for US$82.8 million which has rights to undertake a property project in Ho Chi Minh City with an estimated gross development value (GDV) of RM6 billion.

It said on Wednesday, March 10 its unit, Gamuda Land (HCMC) Sdn Bhd was buying the stake from Sai Gon Thuong Tin Real Estate Joint Stock Company (Sacomreal).

Gamuda said Tan Thang Co. has the rights to undertake a project on a 825,216.5 sq metre site in Son Ky Ward, Tan Phu District, Ho Chi Minh City.

"Tan Thang Company will undertake the Project comprising medium-end and premium residential apartments, a sports complex and an educational complex on the land. The project is expected to generate a GDV of RM6 billion," it said.

Gamuda said the first sales launch is expected to commence in the second half of this year and over a seven-year period.

Under the agreement, would loan US$66.24 million to Tan Thang Co. at 13% per annum. The loan shall be repaid to Sacomreal once Tan Thang Co. has secured and drawndown from the project’s lender.

Gamuda HCMC will fund its share of equity participation in Tan Thang Co. via shareholder’s advance from Gamuda using internally generated funds and/or bank borrowings.

"The project will enable Gamuda to strengthen its position in the property development industry in Vietnam," it said.

By The EDGE Malaysia

Kulim sells property

DIVERSIFIED palm oil group Kulim (M) Bhd is selling its property Menara Ansar in Johor, to AmanahRaya Trustees Bhd for RM105 million.

Kulim will be paid partly in cash of RM63 million, while the remainder will be through the issuance of 42.9 million new units of Al-'Aqar KPJ Real Estate Investment Trust (REIT) at an issue price of 98 sen per unit.

AmanahRaya is the trustee of Al-'Aqar REIT.

Kulim managing director Ahamad Mohamad said proceeds from the divestment will be utilised for repayment of the group's borrowings.

By Business Times

Tuesday, March 9, 2010

Golden Horses to launch Palace Residence this year

GOLDEN Horses Development Bhd (GHD), a private firm owned by Tan Sri Lee Kim Yew, aims to launch its RM600 million Palace Residence Suite this year and market its property to Asian investors.

Palace Residence is located at the Mines Resort City in Seri Kembangan, Selangor. It is being launched a year behind schedule due to the recession in 2009.

There are more foreigners now, setting their eyes on new properties here, said Golden Horse Palace Bhd (GHPB) executive director Dianna Lee.



"We have received a few enquiries on the property. There are people keen to buy. We are targeting foreign buyers and have appointed an international real estate agent," Lee said in an interview with Business Times recently.
GHD and GHPB are sister companies, which means that they are both owned by the same major shareholder.

GHD is targeting a June launch for the suites in Singapore, followed by Hong Kong, China and Malaysia towards the end of the year.

Palace Residence will offer 226 one-bedroom suites with a built-up area of 500 sq ft, and 156 two-bedroom suites, ranging from 1,100 sq ft to 1,400 sq ft, as well as four penthouses. The suites are selling for RM900,000 to RM1.4 million each.

The 19-storey Palace Residence, which is a combination of a hotel and condominium, will complement the 480-room Palace of the Golden Horses. Palace Residence will be built next to the five-star hotel and they will be connected by a bridge.

GHD will include free golf membership, worth some RM800,000, in the property sale. Buyer will automatically be a resident gold member at the 18-hole golf course at the Mines, Lee said.

Construction will start in the second half of 2010, and is due for completion within three years.

Lee said buyers can lease their units to GHPB to manage, with guaranteed returns of 7 per cent for the first two years. The indicative selling price for each suite a night is from RM800.

GHPB is the hospitality, leisure and health arm of Country Heights Holding Bhd (CHHB).

It manages three resorts - Palace of the Golden Horses and Mines Wellness Hotel, located within the Mines, and Borneo Highlands Resort, Sarawak.

The Mines, the country's first resort development, is a project by CHHB, in which, the senior Lee holds 48.1 per cent stake.

By Business Times

Bolton targets RM1b from 4 new properties

Bolton Bhd is targeting a gross development value of RM1 billion from four new properties to be launched this year.

Executive Chairman Datuk Azman Yahya said the four new properties would be located in prime locations.

"The much-awaited "Sixceylon" development in Jalan Bukit Ceylon will be launched in June," Azman said during the unveiling of the project here today.

The Sixceylon will be built on where the current Bolton Court is located.
The existing 12-storey Bolton Court, completed in the late 1970s, will be redeveloped and transformed into a modern development comprising a 33-storey apartment building priced between RM600,000 and RM1.2 million per unit.

The Bolton Court, with its design and location was well received by the expatriate community and many leading multinational corporations and foreign dignitaries have known it to be their home when in Malaysia, Azman said.

"Although Bolton Court has contributed significant investment income for Bolton over the years, we believe the time is now right to redevelop the old and tired-looking building," he said.

He also said the recent increase in interest rate is not expected to have a significant impact on the sales of property.

"The increase of 25 basis point is still small," he said.

"What is important is that there must be confidence that the financial market continues to support property projects," he added.

By Bernama

Good turnout at ONE Australia Property Fair


Enthusiastic investors visit ONE Australia Property Fair

A group of established and reputable property developers and real estate agencies from Australia showcased their projects at the ONE Australia Property Fair which was held on March 6 and 7 at Cititel Mid Valley, Kuala Lumpur.

Organised by Cyan Event Management, the fair showcased over 15 new prime projects in major cities such as Melbourne, Sydney and Perth, as well as the state of Queensland . There were diversity in types of property presented, from luxury waterfront projects to affordable student-apartment units and also townhouses, landed properties and commercial units.

When asked about visitors’ response, Cyan Event Management managing director Charles Yong replies, “We had a very good turnout of approximately 2,500 visitors, which is 25% more than last year’s fair. Most people expressed genuine interest to buy and invest in Australian properties. According to past records, landed properties in some major Australian cities sold in 2002 for around AUD320,000 can now fetch about AUD700,000. More recently, landed properties in Melbourne have shown a yearly 18% price increase. For example, the prices of such properties have gone up by 10% in Box Hill and other parts of East Melbourne during this exhibition, when compared to our previous showcase in August last year.”

Visitors were treated to a seminar titled “ONE Australia Property Seminar” which featured a series of interesting topics such as Investing In Australia - Your Choice of State, Property Investment in Western Australia, Australia - Your Migration Options, Living & Studying In Australia, and Transparencies and Clarity in Understanding Australian Property Investment & Finance. Guest speakers include Marcus Gilmore, Samantha Payne, James Tan, Danny Ong and Leonard Ng.

MLG Realty managing director Marcus Gilmore commented that the turnout was much better than expected. He continues, “Visitors were already at the entrance at 10am even though the fair opens at 11am.”

“Overall, our exhibitors were satisfied with last weekend's One Australia Property Fair. Many said it attracted more quality visitors than other South East Asian exhibitions promoting Australian properties,” says Yong.

By The Star

CP Group plans more projects in Penang

GEORGE TOWN: A five-star hotel, a convention centre, a hospital and high-end condominiums are among the projects lined up by the CP Group for its Queensbay site.

CP Group executive director Datin Jane Yeo said these projects would be located on the remaining 35 acres (14ha) of the total 75 acres which has yet to be developed.

"These projects will be the cream of our total development of Queensbay," she told a press conference after the official opening of Eastin Hotel Penang.

"To date, the gross development value (GDV) is more than RM1 billion, including the Eastin Hotel. We will launch Parcel 4 by the end of this year which will be a condominium project with a GDV of RM500 million,"

Yeo said talks were underway with interested parties to set up the hospital while plans for the convention centre were also being finalised.

She added that CP Group was also looking at expanding the Eastin Hotel brand both locally and abroad, either on its own or in collaboration with other parties.

With an investment of RM130 million, Eastin Hotel Penang is the first extension of CP Group's flagship hotel in Petaling Jaya.

The 14-storey four-star business class hotel with 328 rooms is located next to Queensbay Mall, which was part of the white knight package of the abandoned Bayan Bay project by the CP Group in 2004.

Since its opening in November 2009, the hotel has been enjoying 78% occupancy.

CP Group executive chairman Datuk Tan Chew Piau said in his speech that despite facing uncertainties during the 2008 financial crisis, the group carried on and speeded up construction activities instead of slowing down as most industry players had done.

"We finished the hotel in a record time of 15 months," he said at the official opening of the hotel by governor Tun Abdul Rahman Abbas, which was also attended by Chief Minister Lim Guan Eng.

Lim, meanwhile, proposed that a hospitality school be set up in Penang to cater to the demands of new hotels coming up in the state.

"According to statistics from the Tourism Ministry, the hospitality industry in Penang has shown an upward trend the past five years in hotel guests from 4.1 million in 2004 to 6.3 million in 2008, an increase of 53% over the past five years.

"There has also been a significant increase of hotel guests in Penang from the domestic market from 2.1 million in 2004 to 3.4 million in 2008," he said.

By The EDGE Malaysia

Permaju ventures into property development

PERMAJU Industries Bhd, a timber company and car distributor, is diversifying into property development by buying 70 per cent of Har- die Development Sdn Bhd for RM33.68 million cash.

Hardie is jointly developing an integrated commercial and residential properties known as Princess Heights in Sabah. Permaju is buying the firm from Datin Pang Fook Kyun and Andrew Sim.

It will use internal funds and borrowings for the deal, due to be completed by the third quarter of this year. Pang is the wife of Datuk Lim Yen Ngiap, a substantial shareholder of Permaju.

By Business Times