Mah Sing plans to build homes in Sabah for MM2H buyers

Mah Sing Group Bhd, the country's fifth largest property developer, is looking for land in Sabah to build residential homes and villas for foreign buyers interested in the "Malaysia My Second Home" (MM2H) programme.

Group managing director Tan Sri Leong Hoy Kum said the company was seeking land in Kota Kinabalu to develop into a mixed range of properties, including villas and residential homes.

"We want to build more houses that can be sold under the MM2H programme and are looking at buying land near the beaches or anywhere in a prime area, or with potential to become a prime area in future," he told reporters after Mah Sing's extraordinary general meeting in Kuala Lumpur yesterday.

"We decided on Sabah because we find that many foreigners are interested to buy properties there."
The group is on track to meeting its RM1 billion sales target for the year through several property developments in the Klang Valley, Penang and Johor.

"We are on track to achieving our sales target, based on our performance in the first three months of this year during which we hit RM516 million. That is three times more than the RM170 million sales achieved in the same period in 2009," Leong said.

The group also plans to acquire at least 405ha in prime areas in Selangor and Johor Baru.

"We have bought two pieces of land since the beginning of the year and are looking for more land to buy, especially in prime locations in Selangor."

Mah Sing has a gross development value and unbilled sales of RM6 billion, which provides earnings visibility for about six to eight years.

Last year, Mah Sing posted RM94.3 million net profit on revenue of RM727 million, surpassing the year's initial target of RM453 million by 1.6 times.

Leong also said that the group's shareholders had voted and approved its proposed bonus issue of up to a maximum of 151,283,858 new ordinary shares of RM0.50 each on the basis of one bonus share for every five existing ordinary shares of RM0.50 apiece.

By Business Times

Mah Sing on track to meet RM1bil sales target

PETALING JAYA: Mah Sing Group Bhd is on track to achieve its RM1bil sales target this year, having hit sales of RM516mil in the first three months.

Managing director Tan Sri Leong Hoy Kum said in a statement the achievement was three times the RM170mil sales registered in the previous corresponding period.

He said the company had gone on an acquisition trail last year to secure prime land and expected to see some results this year.

The group has landbank with a gross development value and unbilled sales of about RM6bil, which provides earnings visibility for about six to eight years.

The group plans to launch about RM1bil worth of properties this year, comprising industrial, commercial and residential projects in the Klang Valley, Penang and Johor.

The group posted a net profit of RM94.3mil last year with total sales of RM727mil.

Shareholders at its EGM yesterday approved its proposed one-for-five bonus issue of up to 151.3 million new shares.

By The Star

Investors infuse value into heritage buildings

AS PENANG'S property scene remains on the boil with developers offering newer and pricier accommodation and commercial options, a new trend in property investment is emerging, notably in George Town's heritage enclave.

In contrast to land reclamation projects, those on hillslopes and efforts in building on virtually any and every available space on the land-scarce island, a group of property investors are out to prove that "old is gold", infusing new life into heritage buildings and giving conservation an economic context.

From foreign retirees to young people who are starting off a business, the address of choice for their premises seem to be centred around the inner city, which saw a migration of its residents a decade ago.

In place of dilapidated shophouses and abandoned pre-war homes are now chic eateries, boutique residences, private dwellings and quaint shops, which make walking tours to visitors very refreshing.
Although the interest in heritage properties is not new, a spike was noted when the Rent Control Act was repealed in 2000.

"George Town has always been synonymous with its historic buildings," notes One Asia Property Consultants (Penang) Sdn Bhd chief operating officer Lim Ewe Tatt.

He attributes George Town's conferment as a World Heritage Site by Unesco to one of the reasons why there has been a recent surge in the number of eateries and boutique accommodation.

"The need to preserve our heritage comes along with it," he said, adding that demand for heritage properties is currently centred within George Town's inner city in sites such as Lebuh Armenian, Lebuh Muntri, Lorong Stewart and other streets boasting structures with beautiful designs.

Award-winning architect Laurence Loh - who is synonymous with putting Malaysian conservation efforts on the world map with the Cheong Fatt Tze Mansion or La Maison Bleue (the blue house) - blazed a trail in architectural conservation in Malaysia, long before the issue even became trendy or understood.

He has to date, worked on some 30 conservation projects in George Town, of which about 70 per cent have been commercial in content.

Loh's first conservation job was the Cheong Fatt Tze Mansion on Lebuh Leith, which he describes as a challenging project.

"This was because in 1990, I did not have any working or hands-on knowledge and training in building conservation, nor attended a single course.

"There was no Internet, so reaching out for help and advice was difficult from a statutory point of view. The laws for protection of heritage were also non-existent," said the deputy president of Badan Warisan Malaysia.

Conceding that the World Heritage inscription has placed George Town and in turn, the whole of Penang under the microscope, Loh added: "World attention has zoomed in on us and the advantages and opportunities are beginning to be apparent."

People, Loh said, are exposed to the heritage values of the place and is a greater awareness now.

"The concept of living in the city that was formerly alien has become fashionable and stylish."

The government's property market report for 2009 showed that a total of 164 pre-war properties (totalling RM74.22 million) were transacted in Penang during the first six months.

This is in contrast with the 120 pre-war properties worth RM64.45 million transacted in the state during the corresponding period in 2008.

"Pre-war properties usually encompass several units which are sitting on one title and if you are to analyse it, it is cheaper than buying into a property with its own qualified title," said Lim.

"The price range could be from RM200 per sq ft to RM500 per sq ft, depending on the location, size, condition and other considerations."

On whether the latest wave in heritage property investments is likely to see a revival of activity in the historic enclave, Lim said: "We anticipate a revival of commercial activities in the area but we doubt it will bring back the residents.

"One of the reasons is the lack of car parking space in this area, and rentals are no longer affordable to the lower-income group who used to stay here."

Although the current trend serves as a boost for the city, Loh said that the only critical factor to it is that the authorities have to really look into managing change.

"They cannot allow market forces to dictate the direction of pace or policy," he added.

By Business Times

Govt to spend RM1b in Kota Iskandar

NUSAJAYA: The construction of six buildings expected to house more than 50 federal departments and agencies in Kota Iskandar here will commence next year.


Historical record: Ghani, State Secretary Datuk Abdul Latiff Yusoff and Ghani’s wife Datin Paduka Dr Jamillah Ariffin looking at the coffee table book in Nusajaya.

Johor Mentri Besar Datuk Abdul Ghani Othman said the buildings which cost RM1bil would be built in the northern part of Kota Iskandar, the new state administrative centre.

“The project is expected to be completed in two to three years. It is part of the Government’s expenditure under the 10th Malaysia Plan,” he told reporters after launching a coffee table book entitled Johor In the 21st Century: The Making of Kota Iskandar here recently.

Abdul Ghani said the book delved into events behind the development of Kota Iskandar.

“The state realised the need for a new administrative centre to replace Bangunan Sultan Ibrahim. The project involved Johoreans especially in the design of the buildings,” he said.

“The book sheds light on the first phase of Kota Iskandar involving the construction of the State Assembly building, the Mentri Besar’s office complex, Dataran Mahkota and other government offices in 2006.

“It illustrates how the building designs are inspired by Johor Malay history and Moorish elements,” he said.

The book which cost RM200 also served as a reference on the history of Kota Iskandar, he added.

By The Star

Samling unit in RM6b Viet project

Perdana ParkCity Sdn Bhd, a subsidiary of the timber-based Samling group, will launch its maiden RM6 billion township project in Hanoi, Vietnam by July this year.

Called ParkCity Hanoi, the project features townvillas, townhouses, semi-detached homes and bungalows, as well as condominiums and apartments, which will be built in 15 phases. It will comprise a commercial belt, a community clubhouse, a central park and international schools.



The project will be a replica of Perdana ParkCity's on-going multi-billion ringgit Desa ParkCity township development in Bukit Menjalara, Kuala Lumpur, its group chief executive officer Lee Liam Chye told Business Times in an interview.

"We didn't launch earlier because of the global financial crisis. While the property market in Vietnam (now) remains soft, we expect it to bounce back in the third quarter of this year. We are seeing pockets of recovery," Lee said.

ParkCity Hanoi will be developed by The Vietnam International Township Development JSC (VIDC), in which Perdana ParkCity has a 59 per cent stake.
Vietnam's Vinaconex-Hoang Thanh Urban Development and Investment JSC holds another 40 per cent in the joint venture, while the remaining 1 per cent is owned by a local Vietnamese businessman.

Lee said Perdana ParkCity's contribution in the joint venture is to develop the properties, transfer its expertise and provide some funding.

VIDC has signed a credit agreement with Vietinbank to provide US$45.7 million (RM150.81 million) for the project's two initial development phases.

ParkCity Hanoi will cover 77.4ha at the junction of Le Van Luong and Le Trong Tan roads in Ha Dong district, about 13km from the city centre.

"Our partners will assist us in marketing the products and dealing with the authorities. They are targeting the locals and expatriates in Vietnam. We are confident the project will generate good sales," he said.

Lee added that ParkCity Hanoi will be a good platform for Perdana ParkCity to establish its brand internationally.

Vietnam is Perdana ParkCity's first overseas venture.

By Business Times

Mah Sing rewards shareholders and confident of strong growth with RM516million sales for 1st Quarter 2010

At its Extraordinary General Meeting (EGM) on 23 March 2010, Mah Sing Group Berhad’s shareholders voted unanimously to approve the bonus issue up to a maximum of 151,283,858 new ordinary shares of RM0.50 each on the basis of one Bonus share for every five existing ordinary shares of RM0.50 each.

The bonus issue serves to reward Mah Sing’s existing shareholders for their continuous support and loyalty towards the growth of the Group. With a strong track record of profitability, clear expansion plans and an attractive dividend policy, the Group has strong institutional shareholdings, with more than 50% of their shares being held by reputable institutional investors. The bonus issue will allow the Group to increase its capital base and improve its liquidity by further enlarging the market capitalisation.

Mah Sing Group’s managing director Tan Sri Dato’ Sri Leong Hoy Kum said, “We have done well, achieving compounded annual growth rate of 51% in net profit from 2002 to 2009. As such, it is timely to reward our shareholders as the marketability of Mah Sing shares on Bursa are also expected to improve further with an enlarged large capital base and with stronger growth prospects.”

The Group has landbank gross development value and unbilled sales of approximately RM6billion which provides earnings visibility for approximately 6 to 8 years. Despite the challenging economy, Mah Sing posted a RM94.3million net profit and sales of RM727million in year 2009, surpassing the initial target of RM453million by 1.6 times.

Leong said, “We went on an acquisition trail in 2009 to secure prime land and this year will see the fruition of our efforts. Of our 25 projects, we have completed 5, and our launches this year will come from our remaining 20 projects. Our sales target is RM1billion for 2010 and while this is ambitious, we believe this is achievable given our strong branding, products quality, location, concept and track record. So far, we are on track to achieve our sales target with sales achievement for the first 3 months of the year hitting RM516million. This is three times the RM170million sales achieved in the same period in 2009.”

“The sales momentum in 2010 has been boosted with the launch of new projects namely iParc@ Bukit Jelutong, iParc@Shah Alam and Perdana Residence 2 in Selayang as well as the preview for Garden Residence in Cyberjaya. The show units for Perdana Residence 2 has just been completed and unveiled to approximately 500 privileged guests on 13 March 2010. We received positive feedback on the designs, layout and finishes, and we are now eagerly looking forward to presenting the show village in Garden Residence. Comprising 10 show houses and a sales gallery, we target to open the show village to the public by the first half of 2010,” added Leong.

By The Star

Dorsett Intl may get second hotel in Johor

DORSETT International Hotels & Resorts Sdn Bhd may own and manage a second hotel in Johor in the next three years.

The proposed hotel, to be developed by a subsidiary of Malaysia Land Properties Sdn Bhd (Mayland) - Mayland Austin Sdn Bhd in Mount Austin, Johor, will however be positioned differently from the existing Dorsett Johor Hotel.



"We are looking at a second hotel in Mount Austin within the Palazio development by Mayland," Dorsett Johor's resident manager Tengku Ahmad Faizal Tengku Mohamed told Business Times in an interview.

"The hotel should be ready within the next three to four years. The positioning of the hotel has to be different, maybe only about five to 10 minutes from the existing Dorsett Johor (in Plentong)," he added.
However, details on room inventory and cost of the new development have yet to be finalised.

Dorsett International is owned by Hong Kong's Far East Consortium International Ltd (FEC).

FEC deputy chairman and chief executive officer is Tan Sri David Chiu, the founder of Mayland.

The Far East group now operates hotels in Hong Kong, China, Macau, Japan and Malaysia. It has confirmed a hotel opening in Singapore.

Dorsett is also looking at growing its hotel portfolio in Malaysia. It was reported that Dorsett has been given RM500 million to either build or buy hotels in Malaysia.

While it is eyeing to expand into the Klang Valley, it is also looking to have representations in Sabah, Pahang and Penang.

It has confirmed of opening two hotels in the Klang Valley, one a 200-room business boutique hotel in Sri Hartamas, for an estimated RM100 million, and a three-star 300-room one in Cheras for between RM60 million and RM70 million.

Apart from Dorsett Johor, the group owns and operates four other hotels in Malaysia, namely the Grand Dorsett Subang, the Dorsett Regency in Kuala Lumpur, the Grand Dorsett Labuan and the Maytower Hotel and Serviced Residences.

By Business Times (by Vasantha Ganesan)

Dorsett Johor -- 3-star rating but 5-star service

DORSETT Johor Hotel may be a three-star property, but everything else, from its service culture to room facilities, would earn it an additional star or even two.

The hotel is in fact comparable to other five-star properties in Kuala Lumpur.

How so? For a start, the rooms are new and modern and its service standards impeccable.

This 252-room hotel has a very lean staff to room ratio of 0.35, which is an enviable one, as every employee not only executes his or her job efficiently but also multitasks.
Its 95 employees play their role in helping the hotel chalk-up a gross operating profit (GOP) of some 40-odd per cent.

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

"We need quality staff and not an army," the hotel's, resident manager Tengku Ahmad Faizal Tengku Mohamed told Business Times when asked about its performance.

This two-and-a-half-year-old hotel located in Plentong, Johor, expects a GOP of 43 per cent in the year ending March 2011, as it hits an average occupancy of 75 per cent and an average room revenue (ARR) of RM130.

The jump in guest arrivals, from 65 per cent now, will be a result of an improving economy and the opening of the neighbouring Singapore casinos.

By March 31, the company's GOP is expected to touch 40 per cent.

"The economy has stabilised. Without a doubt, we can achieve 75 per cent occupancy," Tengku Ahmad said.

"We plan to tap into the opening of the casinos in Singapore from those who want to gamble but prefer to stay here," he said, quoting tourists from Thailand as an example.

He also expects Internet bookings to grow this year by up to a quarter of its bookings from about an eighth now.

Accordingly, Tengku Ahmad is hopeful that the hotel will be able see the return on investment within seven years.

The RM80 million hotel is owned by Hong Kong's Far East Consortium International Ltd. The hotel was originally part of an 11-block apartment called Prima Regency. One block comprising 47 units were converted into the hotel.

The hotel's guests are two-thirds corporate-based and predominantly from Malaysia and Singapore. It also gets a good response from the US, Europe and Australia.

It has some 50 rooms, which are on long-term lease and has a good 35 per cent of repeat guests.

Tengku Ahmad's winning formula also comes from his principle of "One should sell what the guests/customers want and not sell what the vendor or the hotel wants to sell".

Meanwhile, the hotel, which now shares the swimming pool with the apartment block, will have its own swimming pool within the next six months. It also plans to open a high-end spa.

Dorsett Johor had two weeks ago won the Gems Awards for Best Three-Star Hotel in Johor, which was awarded by the Johor state government.

By Business Times (By Vasantha Ganesan)

LFE unit sells land for RM4.9mil

KUALA LUMPUR: LFE Corp Bhd’s 51%-owned subsidiary Bestgate Development Sdn Bhd (BDSB) has entered into a sale and purchase agreement with Adept Development Sdn Bhd for the disposal of 116 pieces of freehold land for RM4.9mil cash.

LFE Corp told Bursa Malaysia yesterday that the land was currently charged to AmBank (M) Bhd as security for the banking facilities granted to BDSB.

“The land (prior to subdivision) was acquired on Jan 10, 2005 at an aggregate original investment cost of RM3.71mil,” it said in a statement.

“As per the latest consolidated audited accounts dated March 31, 2009, the net book value of the land was RM5.72mil attributed to the additional sum of RM2mil incurred in the development of the land and maintenance thereof since the date of acquisition.”

LFE Corp said the price was arrived at a willing buyer willing seller basis after taking into account the current prevailing market value based on another earlier lower offer on the land and the valuation on the land carried out by Messrs One Asia Property Consultants (PG) Sdn Bhd which valued the land at RM5mil.

By The Star

OilCorp’s D’Tiara sells property arm

OILCORP Bhd’s unit D’Tiara Corp Sdn Bhd has agreed to sell property arm Magic Coast Sdn Bhd to Amanahraya Development Sdn Bhd for RM29 million.

The sale was necessary to ensure that the joint-venture project, Amanahraya Corporate Tower & D’Tiara Hotel Suites, continues since Oilcorp would have difficulty in procuring end-financing due to its Practice Note 17 status.

The project development cost is RM374.4 million and is expected to be completed by the end of this year.

By Business Times

Talam unit sells land for RM35mil

KUALA LUMPUR: Talam Corp Bhd subsidiary Galian Juta Sdn Bhd has entered into two sale and purchase agreements with Malaysian Allied Health Sciences Academy Sdn Bhd to dispose of two pieces of land for RM35.4mil.

In a filing yesterday, Talam said the original cost of investment of the land was RM34.7mil.

It added that the sale proceeds from the proposed disposal would be utilised to pare down the interest and principal to the entire loan facility granted by EON Bank Bhd to Galian Juta and the balance for its infrastructure cost and working capital.

By The Star

GTower expected to be 75pc occupied by Jan

GOLDIS Bhd, a private equity investment company, expects three-quarters of its GTower building in Jalan Tun Razak, Kuala Lumpur, to be occupied by January 2011.

The 30-storey office building, which comprises offices, a 180-room business hotel and a club that caters to its guests and tenants, has a built-up of 1.4 million sq ft and over 800,000 sq ft in nett lettable area.



"We have confirmed occupancy of 48 per cent," Goldis' head of corporate investments Colin Ng said.

The tenants, mostly from the oil and gas and Multimedia Super Corridor (MSC)-status companies, moved into the building in late January this year.
The rental at GTower including service charge is RM7.50 per sq ft. The tower has also allocated 0.4ha for a food court, which is scheduled to open in September. It was reported that construction of the food court will cost some RM470 million.

Ng, who expects return on investment to take between seven years and eight years, said that among GTower's pull factor is the leasing flexibility which enables tenants to rent for short or long term.

GTower, the first international green rated office building in Malaysia, has 10 units of cube, which measure between 120 sq ft and 280 sq ft per unit. It accommodates one to three persons.

"It is suitable for start-ups and for short-term use," GTower Sdn Bhd manager of business offices operations, Lucia Micheal said.

The building also has nine units of flexible offices measuring between 1,250 and 2500 sq ft. These units are fully fitted and suitable for short-term use and projects, particularly those who do not want to invest much to fit out an office. It can comfortably accomodate 20 people.

GTower also has duplex units which are designed to allow maximum amount of light to filter in.

Other pull factors include its MSC-status. Its provisional MSC status will soon be converted to a full MSC.

"The building has been designed efficiently in terms of size and tenancy terms. We can allow the tenants to expand and provide contracts according to their needs," Micheal said.

Its green building initiative also enables it to save as much as 23 per cent in electricity.

The hotel, to be called The G City Club Hotel, occupies three floors of the building. Scheduled to open in May 2010, it expects an average room rate of RM400 and an occupancy of 75 per cent in the first year of operations.

The Club, which is scheduled to open at the same time as the hotel, measures 10,000 sq ft. All hotel guests and chief executive officers of companies located in the building will receive club membership.

"It will be run like a business club," Micheal said.

The building also features two salt water swimming pools.

By Business Times

Home expo: There'll be something for everyone

The 10th edition of the Modern Home and Lifestyle Fair to be held at the Mid Valley Exhibition Centre, Kuala Lumpur, from Friday to Sunday, will showcase more than 300 booths by 100 exhibitors.

BW Cyans Advertising Sdn Bhd project director Charles Yong said the consumer fair promises to be a wholesome event for all home owners, featuring things from kitchen appliances to landscapes designs.

"We have something for everyone. Everyone who owns a home should come and visit this fair," Yong told the Business Times recently.

The fair will have a wide variety of latest brandname products on display such as Alfo, Benova, Ogawa, Turn Design, Mormarks, Luzzone Gallery, Kenwood, Elegant Concept and Mattressworld.
"We expect close to 80,000 visitors and a sales target of RM15 million this year," he said.

Besides the latest on home appliances, those wishing to renovate, refurnish or decorate their homes are urged to visit the fair.

"We will also have interior designers at the exhibition, who will give free consultation for the first 20 minutes.

Consumers are advised to bring their floor or building plan over if they want to get expert advice from these interior designers," he said.

Yong said the fair will also have a host of exhibitors ranging from furnishings to fittings, kitchen and bathroom, door and window, home entertainment and home and decoration.

Shoppers who purchase over RM200 and above in a single receipt will be eligible to participate the spin the wheel contest for a share of over RM120,000 worth of prizes including 32" branded LCD TV's, folding bicycles, imported table lamps, designer umbrellas and much more.

Entry is free and the fair will be open from 11am to 9pm.

By Business Times

Sepang Gold Coast sees RM30m from resort

Sepang Gold Coast Sdn Bhd (SGC) is optimistic of generating a revenue of between RM20 million and RM30 million from the operation of its Golden Palm Tree Resort.

The RM300 million resort, which will open for business in Bagan Lalang, Sepang, end-June, is 80 per cent sold to European and Middle East buyers.

"We expect to chalk up a revenue of between RM20 million and RM30 million in the first six months to a year of operations.
"The work progress is in the final stage. About 90 per cent is complete. We will hold a soft launch soon to give an opportunity to the public to view the resort, said SGC General Manager Francis Lee in an interview with Bernama recently.

Golden Palm Tree (GPT) water villa is the first phase out of the three-phased Sepang Gold Coast city development project, the longest paradise in Asia.

The coastal city development by SGC is a joint venture between Permodalan Negeri Selangor Berhad (PNSB) and Sepang Bay Sdn Bhd, a private investment holding company.

The GPT resort is made up of 393 water villas, built in the shape of a palm tree, stretching 1.2 kilometres into the Straits of Malacca. Lee said buyers were guaranteed a seven per cent return on the net purchase price per annum for seven years.

"At the beginning, SGC is looking at a 30 to 35 per cent occupancy rate. Overall, we expect an annual increase of between five and 10 per cent with locals and Singaporeans making up 50 per cent of the patrons to the resort," he said.

The second phase of the Sepang Gold Coast project called Escapade will consist of activity areas, restaurants and clubs that will kick off for construction next month and be completed by end-September.

Meanwhile, work on the third phase of the sea tropics project resort, costing RM300 million, will begin in September.
Lee said it was very challenging to promote a place like Bagan Lalang as it was not well-known even among Malaysians.

"So, we are putting a lot of effort to promote the resort through local and foreign travel agents besides traveling to other countries to participate in related events to establish the name," he said.

Although SGC was still new and in the process of penetrating the market for recognition, Lee was confident the entire project when completed in 2012, would be another landmark for Malaysia after the Petronas Twin Tower.

"Bagan Lalang is a quiet place but it will develop rapidly as the momentum pick ups once the GPT resort is open.

"Although the GPT resort caters for the high-end market we are confident this project will be a great success for SGC and Malaysia," he reiterated.

By Bernama

Heritage boost for Penang

PENANG’S UNESCO world heritage site will soon boast of having the country’s first ‘cultural hotel’.

Property owner K.H. Seah said three pre-war houses along Jalan Pintal Tali would be restored and re-opened as a high-end hotel to be named ‘1881 Chong Tian Cultural Hotel’.

“These triple storey buildings, which have been around for over a century, is located in where I hope to develop as Penang’s Chinatown.

“We want to revive that area and make sure that it becomes a living heritage,” he said in an interview yesterday.

Seah, who owns a stretch of 13 other heritage houses in the area, said he would refurbish the other premises which he planned to rejuvenate and promote as Chinatown.

“We have Little India and the Malay Kapitan heritage enclaves here but no Chinatown.

“This cultural hotel will be a start for us to create a specific area where everyone can come and learn about Chinese culture,” he said.

Work on the cultural hotel will start at the end of the month and is expected to complete by the end of the year.

Seah said he was hoping to get the Unesco Conservation Award for his efforts, adding that the uniqueness of the cultural hotel was that it would have a library, mini cafe and museum featuring extensive antique collections dating back to the 18th century.

“I am an antique collector and have received many pledges from other collectors to help stock up the library and museum.

“The library resources and exhibition area will be free for everyone because one of our main objectives is to propagate the Chinese culture brought here by our ancestors,” he said.

Seah and his partners have invested RM2mil to purchase the three lots and will need another RM1.5mil to refurbish the place in accordance to heritage guidelines.

“The interior is termite-infested and there are trees growing within the building causing the structure to crack.

“Think City Sdn Bhd, a subsidiary of Khazanah Holdings (a federal investment arm), has agreed to assist with the funding,” he said.

“They will meet on Wednesday to decide on how much allocation the project will receive,” he said.

Cultural Heritage Advisory Group member and project consultant Tan Yeow Wooi said the 19th century buildings had many unique features including Venetian windows and intricate Chinese motifs of peonies, dragons and cockerels on the facade.

“There is also a very nice Cantonese-style sliding door with intricate carvings,” he said.

By The Star — Christina Chin

7 on shortlist to build hospital in Desa ParkCity

PERDANA ParkCity Sdn Bhd, a subsidiary of the timber-based Samling group, has shortlisted seven companies, including one from Japan, to build a RM250 million hospital in Desa ParkCity in Bukit Menjalara, Kuala Lumpur.

They are Sunway Construction Sdn Bhd, Crest Builder Holdings Bhd, Putra Perdana Construction Sdn Bhd, UEM Construction Sdn Bhd, Bina Puri Construction Sdn Bhd, Ahmad Zaki Construction Sdn Bhd and Japanese construction giant Obayashi Corp.

Sources familiar with the plan told Business Times that tenders for the 10-storey, 300-bed hospital, to be known as Sime Darby Medical Desa ParkCity, will close this Friday.

"Perdana ParkCity will award the contract in April or May based on merits, technical expertise and track record. Construction will start by May or June, and be completed in 2012," one source said.
Perdana ParkCity group chief executive officer Lee Liam Chye declined to comment when contacted.

It is understood that the proposed hospital will be built on a design, build and lease concept. It is expected to begin operations by early 2013, a year later than initially planned.

It will cater for the Desa ParkCity township and nearby areas such as Kota Damansara, Damansara Perdana, Bandar Sri Damansara, Mutiara Damansara, Bandar Utama, Taman Tun Dr Ismail, Sri Hartamas, Mont'Kiara and Bukit Damansara.

The source said the new hospital, which will have 60 specialist clinics and six operating theatres, will be leased to the country's largest conglomerate, Sime Darby Bhd, for 20 years.

It will be the third full-fledged hospital operated by the Sime Darby group, which is looking to grow its healthcare business to ride on the recession-proof medical industry.

The group currently owns and operates the 393-bed Sime Darby Medical Centre (previously known as the Subang Jaya Medical Centre) in Subang Jaya and the Sime Darby Specialist Centre Megah in Petaling Jaya.

It also owns and operates the Sime Darby Nursing Health and Sciences College managed by Sime Darby Healthcare.

Perdana ParkCity is the master developer of the 192ha Desa ParkCity township, which will have some 7,300 residents when completed by 2015.

By Business Times

SoHo is the way to go

Courtyard view of CENTRIO project by YTL Land & Development.

The Small Office/Home Office (SoHo) segment is slowly but surely, becoming a growing trend in the market, especially among those looking for flexibility in their daily working schedules.

The modern concept of SoHo refers to the category of business, which involves from one to 10 workers. The concept also applies to people who convert part of their home into an office.


James Wong says the SoHo concept is a growing trend with sole proprietors or small partnerships.

Association of Valuers, Property Managers, Estate Agents and Property Consultants in the Private Sector Malaysia (PEPS) president James Wong foresees a growing SoHo demand.

“High office rental costs and traffic congestion are among some of the reasons why more people are going for this (SoHo) concept,” he tells StarBizweek.

He adds that the growth in information technology (IT) today provided the flexibility to individuals from virtually anywhere.

Wong says some banks were already outsourcing their marketing teams, for instance, because such departments could function elsewhere.

“There are also backroom departments like support services, and human resources don’t need to face the public or clients everyday. Soon, it won’t be necessary to have a full-fledged office.”

Wong says the SoHo concept was a growing trend with sole proprietors or small partnerships, such as lawyers and even real estate agents.

CB Richard Ellis Malaysia Sdn Bhd managing director Allan Soo says the typical SoHo buyer are mostly independent individuals rather than professionals.

“This can be advertising agencies or those within the IT industry.”

Soo says the location of the SoHo is critical.

“It definitely makes sense to work in the city within a business environment and having your business partners nearby. If it’s going to be a hassle for your clients to come to you, than it does not make sense.”

Zerin Properties chief executive officer Previndran Singhe concurs that the location of the SoHo is very important.

“You need to be around amenities. Otherwise it’s going to be tough! But ultimately, it all depends on both the product and the location of the property.”

Wong, however, reckons that a SoHo buyer would be more comfortable working outside of the city centre.

“The whole idea of living and working in the same environment is so that you can avoid the hassle of getting stuck in traffic jams when travelling to your place of work.

“People who operate out of a SoHo would most likely prefer a quiet environment rather than to be smack in the middle of the city centre and dealing with the noise. The ideal location would be the outskirts of the city, near a park or commuter train station.”

A search on iproperty.com, the country’s top property portal, reveals four SoHo developments that are currently in the pipeline.

They are the Selangor State Development Corp’s (PKNS) Kasturi Idaman in Kota Damansara, HR United Group’s SB1 and Persanda 2 in Sungai Besi and Shah Alam, respectively and Ong Chong Realty Sdn Bhd’s PJ5 SoHo in Kelana Jaya.

Previndran says there is a growing market for SoHo developments and cited YTL Land & Development Bhd’s CENTRIO at Pantai Hill Park in Bukit Kerinchi, Kuala Lumpur.

According to reports, 70% of the development (at CENTRIO) have been sold. It opened for sales in 2006.

Akashdeep Singh, a 30-something freelance film editor, says working from a SoHo provided him with great flexibility.

“Some people enjoy this lifestyle – working late and sleeping overnight. It can lead to a lot of office romances,” he says, laughing.

Akashdeep, who was going to India for a month that same day, says: “And in cases of emergencies, like if you need to take a sabbatical, you can avoid the hassle of giving notice. In a normal working environment, it’s hard to do this.”

Former lawyer Melissa Ram used to work out of her home and relished the fact that she could completely avoid traffic jams.

“There’s a lot of flexibility, plus there’s no overhead cost or rentals to worry about. With the internet, you can work from virtually anywhere.”

Melissa, however, adds that there were also drawbacks when working from home.

“Sometimes when you need to meet with clients, having them over in your house isn’t appropriate and in such situations, having an office would be better. In such situations, you would have to go out of your way to meet your client rather than to have the convenience of them coming to you.”

She adds, however, that if given a choice, she would still prefer to work from home.

“While working you could still manage the house and do the cooking. Plus, you could work till midnight and not have to worry about security issues.”

By The Star (by Eugene Mahalingam)

Why developers should go green

The El Nino phenomenon has been blamed for the current dry spell that has caused dams, rivers and canals to dry up in various parts of the country.

While it is common for drier weather to occur during such time, thesoaring temperature has worsened the situation.

Many of us must be really concerned about the drastic climate change happening around us and the hot weather that we have to put up with almost on a daily basis.

It has gone to the extent that even a heavy downpour will only provide temporary relief before the sweltering heat is on us again.

The heat is evident even at night as it is nolonger as cool as before.

More people are turning on the air conditioner but this will mean higher energy consumption.

There are many factors that may have contributed to the situation and it is about time concerted efforts are expended to arrest the situation.

Instead of just blaming it on El Nino or other natural conditions, we all have to take some responsibility for this state of affair.

Just look around us and we’ll see why global warming is worsening and the carbon footprint has grown more serious this past decade or so.

Growing consumerism and high consumption for all kinds of goods and services is straining our production lines and the eco-system will be among the first to be hit.

Let’s see how in our own little way we can each take small steps and measures to save the environment from further deterioration.

From making do with less, to opting for natural lighting and ventilation in our dwellings, there are a host of things that are within our control to help alleviate the snarling hot spells.

Having a platform where the common folk and corporate institutions can come together to uphold an environment-friendly way of doing things and upholding sustainability as a core value should be a good start.

A rating system to rate businesses and corporations that do not just claim to be “green companies” but actually “walk the talk” and adopt sound green practices in their business ventures and production processes will steer companies onto the green, sustainable path.

If people pay more attention to such companies and support them, it will naturally promote more environmentally-conscious companies.

As one of the frontliners in the country’s development process, the construction and property fraternity has a huge responsibility when it comes to ensuring more care is taken to promote a more sustainable environment.

Basically, developers should push for a greater balance in their building methods and development plans.

Instead of just cutting and filling, a construction method that has resulted in many “balding” hillslopes and landslides, the better option will be more eco-friendly and sustainable construction methods that retain the natural terrains.

Wherever possible, healthy mature trees should be retained and not indiscriminately chopped down.

Looking at the few number of eco-friendly projects that truly observe holistic planning, designs and construction practices that promote greater co-existence and harmony between man and nature in the country today, there are still much that can be done by industry players.

Some are still not convinced that the sustainable way of development is a better option as there are more nitty gritty things to look into compared with conventional practices.

Although it means having to walk the extra mile and more work for them, earning the reputation as one of the few “green and caring” developers will be worth the effort.

As the green movement gains further momentum, more buyers will opt to buy property from these developers and the accolade will translate into more tangible benefits such as higher sales for the companies.

Besides the landscapings and green lungs, every project, irrespective of whether it is residential or commercial, should give equal emphasis to natural ventilation, lighting and cooling features of buildings.

This is because the working population spend close to or more than a third of their time at the workplace and it will help if they have more natural ambience and an oxygenated environment to work in.

Deputy news editor Angie Ng believes that at the end of the day, there are more to be gained by being green crusaders.

By The Star (by Angie Ng)

Sunway expects record profits for fiscal 2010

SUNWAY Holdings expects record profits in fiscal 2010 as it plans to tender for jobs worth up to RM16 billion globally, said a top executive.

The firm, ranked seventh among local builders with a market value of US$268 million, (RM884.4 million) said its construction orderbook is expected to grow by one-third to RM4 billion this year, partly boosted by the Malaysian government's roll-out of public sector contracts.

"Market conditions have improved over the last six months and we are confident of securing some projects that we have tendered locally," managing director Yau Kok Seng said in an interview yesteday.

Malaysia is planning a new low-cost carrier terminal (LCCT) that will cost RM2 billion to build.
Sunway has submitted its tenders for some of the LCCT jobs and Yau expects the winning bids to be announced as soon as this month.

Other large-scale infrastructure projects that will likely be implemented this year include a RM7 billion light railway transit project near the Malaysian capital as well as a water treatment plant and water transfer projects in Pahang, said Yau.

Construction is the largest revenue earner for Sunway, accounting for over half of the total. Quarrying, building materials, property development as well as trading and manufacturing make up for the rest.

Overseas operations, which comprise mainly the construction and property development projects in China, Singapore and the Middle East, account for 80 per cent of its pre-tax profit, the company said.

In China, Sunway operates through Hong Kong incorporated Sunway Global, a four-year old partnership with global investment bank Goldman Sachs. Goldman owns a 24 per cent of Sunway Global.

Sunway shares were up 2.72 per cent at the close of the early trading session yesterday. The stock has risen 16 per cent so far this year, outpacing the construction sector index's gain of 4.6 per cent.

By Reuters

SP Setia Q1 profit rises 22%

PETALING JAYA: SP Setia Bhd posted a 22% rise in net profit to RM38.2mil for the first quarter ended Jan 31 against RM31.2mil in the previous corresponding period.

In a statement to Bursa Malaysia yesterday, it said the higher net profit was mainly derived from property development activities carried out in the Klang Valley, Johor Baru and Penang.



The group’s construction and wood-based manufacturing activities also contributed to the improved earnings.

Revenue was RM363.9mil for the quarter against RM297mil a year ago while earnings per share stood at 3.76 sen against 3.07 sen previously.

An analyst told StarBiz the results were below expectations but he believed the current quarter would probably see a better performance as the company’s new property sales were strong.

SP Setia said having achieved its highest first-quarter sales of RM608mil, it had decided to increase its sales target for the year ending Oct 31 (FY10) by 25% to RM2bil.

It also said the group targeted to continue strengthening its core landed residential earnings base through sales of existing and new product launches.

By The Star

SP Setia downgraded, stock drops

SP Setia Bhd, Malaysia’s biggest property developer, fell to a one-month low after the company was downgraded at RHB Research Institute Sdn Bhd, which said the share price is in line with the market return.

The stock dropped 4.1 per cent to RM3.98 at 4:10 pm local time in Kuala Lumpur, set for its lowest close since February 22.

The company had its stock rating cut to “market perform” from “outperform,” RHB said in a report today.

By Bloomberg

Setia Promenade takes PPH to court

SP SETIA Bhd's wholly-owned unit Setia Promenade Sdn Bhd has terminated a joint-venture agreement with PPH Resorts (Penang) Sdn Bhd and is suing to recover money incurred in the development of a 45-acre freehold land in Penang Island.

In its filing to the stock exchange yesterday, SP Setia said the Court had fixed a date in June 2010 for case management of Setia Promenade’s action against PPH.

The agreement was first announced on December 12 2006.

Since then, Setia Promenade said it had spent RM12.2 million on the project.
It had recently filed a writ of summons and statement of claim to PPH.

By Business Times

IJM Land: Buy, target price RM2.79

KENANGA Research has initiated coverage on IJM Land Bhd with a "buy" call due to its promising growth prospects, geographically diversified strategic landbank with large gross development value (GDV) and positive news flow from headline projects among other reasons.

Its target price for IJM Land's share price is RM2.79, a 22 per cent upside from its current share price, the report by Kenanga said.



"IJM Land owns one of the largest landbanks with an estimated RM25 billion GDV in Malaysia. A promising future lies ahead for the company given two large pipeline projects - 'The Light' and 'Sebana Cove'," it said.

The report also indicated that the company's current net gearing of 0.25 times is healthy compared with the sector range of 0.2-0.4 times.

By Business Times

Sunway eyes record profits in 2010

MALAYSIAN builder Sunway Holdings expects record profits in fiscal 2010 as the government quickens the roll-out of public sector contracts and as the company’s overseas orderbook swells, said a top executive.

Sunway, ranked seventh among local builders with a market value of US$268 million, will tender for new jobs worth up to RM16 billion (US$4.84 billion) globally with its construction orderbook expected to grow by one-third to RM4 billion this year, said managing director Yau Kok Seng.

“Market conditions have improved over the last six months and we are confident of securing some projects that we have tendered locally,” Yau, a chartered accountant by training, said in an interview today.

Malaysia, home to Asia’s largest budget carrier AirAsia, is planning a new low-cost carrier terminal (LCCT) that will cost RM2 billion to build.
Sunway has submitted its tenders for some of the LCCT jobs and Yau expects the winning bids to be announced as soon as this month.

Sunway shares were up 2.72 per cent at the close of the early trading session today. The stock has risen 16 per cent so far this year, outpacing the construction sector index’s gain of 4.6 per cent.

The earnings forecasts by seven analysts surveyed by Thomson Reuters I/B/E/S put Sunway’s 2010 net profit at RM120.54 million and revenue at RM2.11 billion. Previous year comparisons were not available as Sunway changed its financial year-end to December last year.

By Reuters

JCorp still has 2,000ha Iskandar land for projects

JOHOR Corp, the investment arm of the Johor state government, has another 2,000ha to be developed in the Iskandar Malaysia region, said chief executive officer Tan Sri Muhammad Ali Hashim.

"The landbank is there for future development of industries in the growth region," he said in an interview with Business Times in Bangi, Selangor, yesterday.

While the newer part of the growth corridor located in the west of the state, namely in the Tanjung Pelepas and Nusajaya areas have attracted strong interest, Pasir Gudang and the Tanjung Langsat Port in the east, are equally vibrant.

"With good infrastructure, power, electricity and gas readily available, industries can look to setting up operations here, while the new bridge linking to Desaru provides good connectivity."
The Tanjung Langsat Port, run by a subsidiary of JCorp, is almost ready and it will be the new oil and gas hub. It has already attracted RM4 billion in foreign investments from France, Korea, Spain and Germany.

These include Erndtebrucker Eisenwerk GmbH & Co KG, the German heavyweight steel pipe manufacturer and Bahru Stainless Sdn Bhd, which is 67 per cent owned by Spanish company Acerinox, and 33 per cent by Japan's Nisshin Steel.

"We have received quite a bit of interest from foreign investors and we are now currently engaged with discussions with investors from China."

The oil and gas hub has also attracted keen interest from Singapore-based small- and medium-sized enterprises.

It was reported last month that Johor has secured more than RM50 billion in new foreign direct investments in the oil and gas sector.

"We'll attract capital-intensive investments that the government is pursuing, which provides a good chance of reducing dependence on foreign workers and, at the same time, providing quality jobs with higher income for Malaysians."

JCorp spent RM1 billion in constructing an industrial complex in Tanjung Langsat.

Across Johor, the investment arm has 40,000ha planted with oil palm trees, some of which have the potential for property and industrial development.

Muhammad Ali said JCorp is also positioning Tanjung Langsat as the regional hub for the biofuel industry.

By Business Times

Penang real estate prices poised to rise

DESPITE the global downturn last year, the Penang property market has not recorded any significant drop in prices and is expected to improve this year in line with the economic recovery.

Henry Butcher Malaysia (Seberang Perai) Sdn Bhd's senior manager Fook Tone Huat said that development land, especially in Seberang Perai, is still in good demand, particularly those near town areas.

"Although many projects were deferred last year, we are confident that the worst is over and and the public confidence has begun to come back in the property market," he said at a media briefing on the property market in Seberang Perai, Butterworth, yesterday.

The Seberang Perai area is expect to record a 10 per cent rise in appreciation rate due to its high population density compared to neighbouring states like Kedah and Perak, Fook said.
"No doubt that Penang Island has been the number one choice for property but Seberang Perai can offer a better price and location," he said.

Fook said that development land in Seberang Perai is two times larger than those in Penang island.

"The lack of land for development has caused properties in Penang island to be about 40 per cent higher than those in Seberang Perai," he said.

According to Fook, now is the time for the public to purchase properties as the base lending rate is still below six per cent.

On the outlook for 2010, Fook said the residential sector will still be the main player in the property market in Seberang Perai and among the hotspots to be developed are Raja Uda, Bagan Lallang, Juru, Bukit Tambun and Simpang Ampat.

By Bernama

More green ideas for i-City

A green concept: I-Berhad deputy executive chairman Datuk Lim Kim Hong (left) briefing Chin (middle) on the concept while I-Berhad CEO Eu Hong Chew looks on.

The developer of i-City, I-Berhad will be introducing a number of ideas that will pave the way for the knowledge and tourism hub to be a green development.

In opting to be a “green development”, the developer will be introducing a number of innovative ideas.

One of it is masterplanning the whole city complex from the start with an

environmental-friendly ecosystem, with a campus setting comprising a central park with fingers of green running throughout.

These includes using architectural designs in buildings to create a north-south orientation that funnels the wind flow as well as to use the buildings’ shadows as shade and LED lights, which are 68% lower in carbon footprint than conventional bulbs, in the design of the “lightscape” digital display.

As part of its commitment to help reduce the carbon footprint, i-City organised the Earth Hour in 2009 to create an awareness of the need to highlight the issue of global warming.

Minister of Energy Technology and Water Datuk Seri Peter Chin Fah Kui who was present at the briefing on the latest ideas had nothing but praises for the concept.

“I would like to congratulate i-City for all these initiatives,’ said Chin.

By The Star

Malton unit in Bukit Jalil joint development

PETALING JAYA: Malton Bhd, via wholly-owned subsidiary Pioneer Haven Sdn Bhd (PHSB), has entered into a joint development agreement with Bukit Jalil Development Sdn Bhd (BJDSB) for the development of freehold land in Bukit Jalil worth RM2.5bil.

In a note to Bursa Malaysia yesterday, Malton said the project would be completed in phases over 10 years from the approval date of the development, with an automatic extension of five years, subject to market supply and demand conditions.

This is provided that PHSB commenced development within six months of the “date of issuance of the development order for master plan and approval of building plan by the appropriate authorities.”

Malton said the joint venture was in line within the expansion plan of its core business activities of property development, construction and property investment.

It said the joint venture was expected to contribute to the medium and long term profitability of the company.

PHSB and BJDSB will have an 83% and 17% entitlement of the GDV respectively.

An analyst from a local bank-backed brokerage said: “The project should have a positive impact on Malton in the medium to long term.”

In a separate statement, Malton said it had acquired the remaining 49% of the issued and paid-up share capital of PHSB for RM49 cash on Tuesday.

By The Star

Real estate conference in KL

PROPERTY developers will be able to share ideas and discuss industry issues at the third National Real Estate Property conference to be held next month.

The Malaysian Islamic Chamber Of Commerce will hold the event at the Putra World Trade Centre in Kuala Lumpur on April 7 and 8.

"It will be an ideal platform for those in the industry, large- and small-sized business enterprises to discuss the current challenges with the heightened competition.

"It can also bridge the gap between industry players and academicians ," deputy president Tan Sri Muhammad Ali Hashim said at a media briefing in Bandar Baru Bangi, Selangor, yesterday.
Muhammad Ali, who is also the chief executive of Johor Corp, will present a paper on the need to put unused wakaf land to good "commercial use".

"In many parts of the country, these unused plots of land also look unsightly when sited next to major properties."

At least 300 participants are expected to attend the event which is co-organised by Johor Corp, Universiti Sains Malaysia and supported by the Selangor Bumiputera Developers Association. - By Rupa Damodaran

By Business Times

Templeton buys 5% stake in developer KSL

PETALING JAYA: The Templeton Emerging Markets Group of Franklin Templeton Investments has acquired a 5% stake in property developer KSL Holdings Bhd.

The 5% stake half of the 10% stake or 35.1 million new shares placed out by KSL.

The private placement was completed following the listing of the new shares on March 12.

Templeton executive chairman Mark Mobius was quoted in a Bloomberg report as saying that he was impressed with KSL’s diversified property project and business model.

“Our investment will provide support for the company’s continued growth and presence in the fast-growing Malaysian market,” he said.

KSL executive director Ku Tien Sek said he “felt good” about the acquisition by Templeton.

“They like our management style,” he said when contacted by StarBiz.

Ku said the remaining 5% was acquired by a mix of local and foreign fund managers. He also said KSL would be launching its maiden project in Klang within the next three months.

“It is a mixed residential township and will have a gross development value worth RM2.5bil. We have a 450-acre plot next to Bukit Tinggi 3 in Klang,” he said, adding that the company had not come up with a name for the project.

Ku said KSL currently had four projects in Johor.

“One is a shopping mall-cum-hotel and service apartments development while the other three projects are townships.”

On the outlook for the property sector this year, he said: “This year should be good. Interest rates are still low.”

By The Star

Magna Prima puts off land buy till June 19

MAGNA Prima Bhd’s planned purchase of two pieces of land in Kuala Lumpur for some RM58 million from Muafakat Baru Sdn Bhd is now extended by a further three months to June 19 2010.

Magna wants to build a shopping mall and two blocks of serviced apartments worth some RM730 million on the 4.1ha.

The land is located next to Jalan Kuching and the intersection between Jalan Kuching, Jalan Ipoh and Jalan Kepong.

The deal was first announced in November 2007.

By Business Times

Penang property prices expected to go up

Despite the global downturn last year, the Penang property market has not recorded any significant drop in prices and is expected to improve this year in line with the economic recovery.

Henry Butcher Malaysia (Seberang Perai) Sdn Bhd's senior manager Fook Tone Huat said that development land, especially in Seberang Perai, were still in good demand, particularly those near town areas.

"Although many projects were deferred last year, we are confident that the worst is over and and the public confidence has began to come back in the property market," he said at a media briefing on the property market in Seberang Perai, Butterworth, today.

The Seberang Perai area is expect to record a 10 per cent increase in appreciation rate due to its high population density compared to neighbouring states like Kedah and Perak, Fook said.
"No doubt that Penang Island has been the number one choice for property but Seberang Perai can offer a better price and location," he said.

Fook said that development land in Seberang Perai were two times larger than those in Penang island.

"The lack of land for development has caused properties in Penang island to be about 40 per cent higher than those in Seberang Perai," he said.

According to Fook, now is the time for the public to purchase properties as the base lending rate (BLR) is still below six per cent.

"As long as the BLR is below six per cent, it would not affect the number of purchasers in the property market," he said.

On the outlook for 2010, Fook said the residential sector will still be the main player in the property market in Seberang Perai and among the hotspots to be developed are Raja Uda, Bagan Lallang, Juru, Bukit Tambun and Simpang Ampat.

As for commercial properties, he said Bandar Sunway in Seberang Jaya will continued to be the prime hotspot and there is potential for new shop office development in the area.

By Bernama

Perdana Residence 2 show units generate positive response from registered buyers

Buyers looking at the scale model of the entire Perdana Residence 2 project

Mah Sing Group unveiled its Perdana Residence 2 show units to more than 500 registered visitors on 13 March. At the exclusive preview in Selayang, guests toured the show houses and gave positive feedback on the spacious lay-out, impressive design, as well as high quality finishings. The show units are now open to public from 10 am to 5pm daily.

At the preview, the Group showcased 3 storey superlink homes with land sizes of 22’/24/ x 80’ and approximate built up of 3,182sqft and 3,400sqft priced from RM868,800 onwards for intermediate units.

Each home with high ceilings of 12 feet, has six en-suite bedrooms and two utility rooms, a wet and dry kitchen and is equipped with a smart home alarm system.

Perdana Residence 2 is a gated and guarded project containing 268 units of three storey superlink homes targeted at families who are looking for contemporary resort living in a safe and secured environment with its 2.5metres high perimeter fencing integrated with infra red CCTV and fiber optic sensors.

To ensure its residents enjoy a healthy living, there will be a Clubhouse with swimming pool, gym, BBQ area, children’s playground and other amenities. The Group has also conceptualized a thematic red ribbon leisure park within the project to create a tropical resort ambience with lush greeneries.


Buyers marvelling at the Perdana Residence 2 show unit

The project is located in the heart of Selayang with easy accessibility via a network of highways and trunk roads including the Middle Ring Road 2, Jalan Kuching, Selayang-Kepong Highway and the Rawang Highway. From the project, there is easy access to FRIM (Forest Research Institute of Malaysia), Bukit Lagong Forest Reserve, Selayang Hot Spring, Templer hills and KL Metropolitan Park.

For more information on the project, please call 03-9221 6888 or 012-235 5002.

By The Star

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)

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