Ivory Properties sees right time for listing

Penang-based Ivory Properties Group Bhd, which will soon be listed on the Main Market of Bursa Malaysia, believes the timing is right to go for the listing as the economy, especially the property sector, has picked up following economic stimulus measures by the Government in the past two years.


Datuk Low Eng Hock (left) and AmInvestment Bank Bhd MD T.C. Kok at the group’s prospectus launch early this week.

Chairman/group chief executive officer Datuk Low Eng Hock tells StarBizWeek that Ivory sees strong demand from home owners and investors in land-scarce Penang as well as discerning buyers with an eye for exclusive resort living, high capital appreciation and a prime location.

“We also noticed that in recent months, there have been quite a number of land acquisitions in Penang by big developers,” he says in an email reply. The group has so far undertaken a multitude of projects with a gross development value (GDV) of RM1.51bil.

“The GDV for completed property development projects accounted for about RM675.62mil while the GDV for ongoing property development projects is about RM834.09mil. The projects are scheduled for completion within the next few years,” he says, adding that the listing of Ivory will further enhance the group’s ability to complete property development projects and beef up its financial muscle to undertake bigger projects, both locally and abroad.

Ivory will be the first property development company to be listed on the Main Market this year.

The group launched its prospectus early this week where the balloting of the public issue shares is fixed on July 21 while its listing is scheduled for July 28.

July 19 will be the closing date for application of the public issue.

AmInvestment Bank Bhd has been appointed as the adviser, managing underwriter, underwriter and sole placement agent for the initial public offering (IPO).

Ivory’s IPO entails a public issue of 44.9 million new ordinary shares of 50sen each at an issue price of RM1 per share, comprising of 9.3 million new shares for application by the Malaysian public; 1million new shares by eligible directors, employees and business associates of Ivory and its subsidiaries; 34 million new shares for private placement to selected investors; and 570,000 new shares for Bumiputera investors approved by the Ministry of International Trade and Industry (MITI).

An additional 16.2 million shares at an offer price of RM1 per share will be offered to Bumiputera investors approved by MITI.

Of the gross proceeds, expected to be RM44.9mil, RM10mil will be used to repay bank borrowings, RM31.5mil for working capital and RM3.4mil for estimated share issue expenses.

“I am confident we should do well. Let’s see on July 28,” he says.

On the group’s property business in Penang, Low says being an island, Penang’s property prices will remain stable and this scarcity of land has somewhat shielded the property sector there from adverse effects of an economic slowdown, as had happened before.

“Our properties have appreciated over 40% within a few years and most of our upcoming projects are located in prime locations. We are overwhelmed with enquiries and have accepted registrations from prospective buyers for all the upcoming projects. We are also in the middle of acquiring new landbank in line with our expansion plan after the public listing,” he says, adding that the properties are priced between RM300 per sq ft and RM500 per sq ft.

The Ivory group is a fast emerging developer with a humble beginning. It was established in 1999 to undertake medium to high end property development projects.

It had completed property development projects such as The View Twin Towers (condominiums) in Batu Uban; Tanjung Park (condominium and townhouse) and Seri Taman Tanjung (apartments) in Tanjung Tokong; Plaza Ivory (condominiums, commercial shop lots and retail) and Palace Hill (bungalows and semi-detached houses) in Bukit Gambir; and Penang Times Square’s Phase 1, Birch The Plaza (condominiums and shopping complex) in George Town (Dato’ Keramat).

The group’s ongoing property development projects are the exclusive Moonlight Bay comprising villas and condo-villas in Batu Feringgi with a GDV of about RM189.96mil; Penang Times Square’s Phase 2, Birch Regency comprising condominiums and shopping complex at Jalan Dato’ Keramat with a GDV of approximately RM307.41mil; Zen @ The View comprising bungalows at Batu Uban with a GDV of approximately RM15.32mil; Island Resort’s Phase 2 and Phase 3 comprising condominiums, resort villas and bungalows at Batu Feringgi with GDV of about RM259.03mil and Aston Villa’s Phase 2 and Phase 4 comprising landed residential and shop lot in Bukit Mertajam with a GDV of approximately RM62.36mil.

Future property development projects of Ivory in Penang are Penang Times Square’s Phase 3 and Phase 4 with a GDV of approximately RM624.88mil; Mount Erskine Development comprising The Peak Residences with a GDV of approximately RM221.89mil, Taman Bukit Erskine with a GDV of approximately RM42.30mil, The Latitude with a GDV of approximately RM117.46mil, commercial lots with a GDV of approximately RM34.86mil at Mount Erskine; City Mall with a GDV of approximately RM269.61mil at Jalan Tanjung Tokong; Island Resort’s Phase 4 with a GDV of approximately RM121.15mil; and Aston Villa’s Phase 1 and Phase 3 with a GDV of approximately RM47.66 mil.

Ivory’s project in Tanjung Malim, Perak comprises Ivory Eco Park @ Tanjung Malim with a GDV of approximately RM420mil. On the outlook of the property market this year, Low says he is very optimistic, not only on the Penang market but Malaysia in general.

“With many positive and investor-friendly policies by the Government and healthy growth in our domestic economy, I believe we are on the uptrend. We at Ivory are all gearing up to take up every opportunity in this optimistic property market,” he says.

On plans to venture into the Klang Valley property market, Low says Ivory is studying several parcels of land in the Klang Valley and is looking at joint development with a local partner in the Klang Valley.

Ivory had recorded historical proforma consolidated profit after taxation (PAT) of about RM10mil, RM22.5mil, RM26.5mil, RM26.87 mil and RM17.17mil for its financial years ended Dec 31 (FY) 2005, FY 2006, FY2007, FY2008 and FY2009 respectively.

The company is forecasting a proforma consolidated PAT of approximately RM33.86mil for the financial year ending Dec 31, 2010.

By The Star

Developing townships with the right attributes

The environment theme has become a unique selling proposition for many new property projects as developers hope to leverage on the people’s greater awareness of the environment to boost sales.

It is easy to understand why there is great interest in the environment by both ends of the market. For the buyers, it is not just about the “environmental friendly” way of life but the overall environment of a neighbourhood, including security, safety, facilities and amenities, accessibility and other considerations.

These are important factors that will affect the value of the property in the secondary market when one decides to sell the property.

Many landed residential properties in such neighbourhoods have escalated in prices and even intermediate units are being sold at more than RM800,000 to close to RM1mil a unit.

A check in the classified pages of The Star shows only limited units of landed residences up for sale around the Klang Valley. Most of the “for sale” units are high-rise apartments or condominiums.

As for developers, it pays to plan their townships or projects based on a well balanced and sustainable environment for living, working and playing or recreation.

Instead of maximising the built-up space, developers should strive to achieve the optimum and balanced ratio between the built and “free” or undeveloped space in their projects.

By freeing up land to provide for more pedestrian walkways that link the different neighbourhoods, green lungs and other community facilities including playgrounds, residents will be able to walk more and drive less – thus lowering their carbon footprint.

Besides lowering the cost of living, such facilities will also promote a stronger community camaraderie and kinship among the residents.

These could be the reasons why Desa ParkCity homes are fetching one of the highest price premium in Kuala Lumpur, and possibly the country today.

Since the 473 acre-township took off in 2002, houses in Desa ParkCity have registered a compounded price appreciation of between 50% and 150%, or about 10% to 25% a year, in the secondary market.

From about RM470,000, or about RM235 per sq ft for a terrace house of 2,000 sq ft in 2002, the price has escalated to RM563 per sq ft last month. At a balloting on June 26, all the 137 terraced houses of 3,100 sq ft priced at RM1.75mil were snapped up. More than 800 buyers turned up for the balloting.

Desa ParkCity is a thriving “walkable” township with nine foot walkways connecting all the neighbourhoods.

Its tree-lined streets, a 43-acre central park and well-landscaped neighbourhood parks are among its main attractions.

The success of Desa ParkCity shows that developers should not just exploit the environment catchphrase as a marketing tool, but to go the extra mile to ensure that the townships or projects being built have all the right attributes that promote a holistic, wholesome and secure environment.

Developments with community, park-like environment, walkable streets and top-notch security will be a welcome change from the usual barrack-style layout of most housing estates that are still being built today.

Bad road congestion seems like a “perpetual” occurence in many of our townships. To alleviate the problem, developers should not overbuild and have better traffic planning, including more entrances and exits to make driving within the townships more pleasant.

Likewise, while the Government is making plans to redevelop some of the federal assets and land in Kuala Lumpur and the Klang Valley, the planning authorities should set aside land for the environment cause.

Our cities certainly need more central parks to allow city folk some natural avenues to unwind and relax.

Deputy news editor Angie Ng believes developers that adopt the noble objective of building wholesome environments for the people will be held in high regard for their nobility.

By The Star

CapitaMalls Asia has RM2b to invest in Malaysia

SINGAPORE'S CapitaMalls Asia Ltd (CMA) is looking at investing up to RM2 billion to build and buy malls in Malaysia.

Once the asset starts to generate income, it may then be sold to the CapitaMalls Malaysia Trust (CMMT). CMMT, Malaysia's second largest property trust was listed on Bursa Malaysia yesterday.

CapitaMalls chief executive officer Lim Beng Chee, said that all the money raised from the initial public offering will be reinvested into the Malaysian market.

"We have close to RM800 million from the listing. We have intention to continue investing in Malaysia as we see opportunities in Malaysia.

"So, while CMMT can go on to acquire income producing assets which is yield accretive, there could be projects that are not accretive from day one and need to add value.

"We will be setting up a fund to undertake some development assets to build a pipeline for CMMT to grow over time," Lim said at a press conference following the listing of CMMT.

The development fund, to be ready within a year, will have RM1 billion and can be geared up to RM2 billion.

While the preference is for the fund to build retail properties, Lim said that it may also collaborate with its parent CapitalLand Ltd for funding to build an integrated development which includes a retail component. It can also purchase assets and enhance them.

Similarly, the fund can buy integrated properties provided that at least 65 per cent of the gross floor area, asset value or rental income is the retail portion. If the retail portion is less than 65 per cent, it could opt to do a joint venture with CapitaLand Ltd.

Also, if necessary, the retail portion of an integrated property can be split from the remaining component and offered to CMMT.

Meanwhile, Sharon Lim, chief executive officer of CapitaMalls Malaysia Reit Management said that it has allocated RM40 million and RM60 million for capital expenditure and asset enhancement for 2010 and 2011 respectively.

The CMMT, now has a portfolio of three malls - Gurney Plaza in Penang, Sungei Wang Plaza in Kuala Lumpur and The Mines in Selangor. Together these properties with some 1.88 million sq ft in net lettable area is valued at RM2.13 billion.

CMMT's initial public offering raised RM785.2 million from local and foreign institutional investors. The price for institutional and cornerstone investors was fixed at RM1 per unit and at 98 sen for retail investors.

Retail investors are expected to get a distribution yield of 7.3 per cent in 2010 and 7.6 per cent in 2011.

Yesterday, CMMT's units closed at 98 sen, a 2 sen discount from its reference price of RM1. A total of 11.98 million units were traded.

By Business Times

Lower debut for CMMT

KUALA LUMPUR: Shares of CapitaMalls Malaysia Trust (CMMT), the largest “ pure-play” shopping mall real estate investment trust (REIT) in Malaysia, closed lower yesterday on its trading debut on Bursa Malaysia’s main market at 98 sen, 2 sen lower than its institutional price of RM1 but at par with its retail price.

The stock opened at 98.5 sen, its high for the day, and had a low of 97.5 sen before closing the day with 11.987 million shares changing hands.

CMMT’s initial public offering comprised 786.5 million units, of which 67.5 million were for retail investors and the rest for institutional investors.


Lim Beng Chee and Sharon Lim at the press conference after the listing.

CapitaMall Asia Ltd chief executive officer Lim Beng Chee said he was happy with the opening price as retail investors managed to gain a premium of 0.5 sen.

“Despite the small premium, the most important thing is that the market recognised the value and assets class hidden,” he told reporters yesterday after the listing ceremony.

Lim said CapitaMalls Asia planned to set up a RM1bil fund within a year to build and prepare a pipeline of assets for the Malaysian property trust. “We are looking for maybe another three or four malls to add to our existing assets here in Malaysia,” he said.

CMMT is managed by CapitaMalls Malaysia REIT Management Sdn Bhd, a joint venture between CapitaMalls Asia, which is one of Asia’s largest shopping malls developers, and Malaysian Industrial Development Finance Bhd.

Its portfolio in Malaysia comprises three assets, namely Gurney Plaza in Penang, an interest in Sungei Wang Plaza in Kuala Lumpur and The Mines in Selangor.

CapitaMalls Asia is part of CapitaLand Ltd, South-East Asia’s biggest developer, which owns shopping malls in China, India and Singapore.

Meanwhile, CMMT – which is also the country’s second biggest property trust – expects to distribute its yield of 7.3% for the forecast period of 2010 and 7.6% for forecast year 2011 to retail investors based on the unit price of 98 sen.

CapitaMalls Malaysia REIT Management chief executive officer Sharon Lim said the yield distribution was really attractive compared with some other investment yields in the market.

“This is much more attractive than Malaysian bonds, which offer about 4% yield, as well as fixed deposit rates of about 3%,” she told reporters yesterday.

OSK Research Sdn Bhd in its latest report stated that the dividend yield of 7.5% was “well below” the average 8.5% of other Malaysian REITs.

It said CMMT was likely to offer very limited upside to its unit holders, at least in the medium term.

Having said that, it added that the “premium” might be justified given that the trust would be the second largest in Malaysia, and with the largest free float of 58.3%.

Given its defensive nature and longer-term organic growth catalyst it potentially offered, CMMT was likely to appeal to certain classes of investors only, especially those with a defensive investment strategy, it said.

By The Star

UEM-Bina Puri venture wins RM997m LCCT deal

UEM Construction-Bina Puri joint venture will be the main contractor for the construction of the new LCCT at KLIA in Sepang.

UEM Construction Sdn Bhd (UEMC) has won a RM997.23 million contract with Bina Puri Holdings Bhd to build a much-anticipated permanent low-cost carrier terminal (LCCT) at the KL International Airport (KLIA) in Sepang for airport operator Malaysia Airports Holdings Bhd (MAHB).



MAHB told Bursa Malaysia yesterday that it had appointed the UEMC-Bina Puri joint venture (JV), a 60:40 JV that was established in February, as the main contractor for the construction of the new LCCT.

In a separate filing to the stock exchange, Bina Puri group managing director Tan Sri Tee Hock Seng said the company accepted the letter of award yesterday in the name of UEMC-Bina Puri JV to undertake the design, construction and maintenance of the new LCCT's main terminal building, satellite building, sky bridge and piers.

This works package is expected to be completed within 20 months.

The contract is expected to contribute positively to Bina Puri's earnings for the financial year ending December 31 2010.

"With the award, the group's current book order stands at RM2.7 billion. The total value of contracts secured this year is RM1.51 billion," Bina Puri said.

Its share price gained 31 sen to RM1.42 yesterday on news of the award.

Meanwhile, UEM Group managing director and chief executive officer Datuk Izzaddin Idris said in a statement that the group was privileged to have clinched the mega project, helping its construction order book grow to RM3.7 billion.

UEMC is a wholly-owned subsidiary of UEM Group.

"Based on our track record in building the KLIA in Sepang and other infrastructure assets, we strongly believe that we will deliver an LCCT complex that is of global standing," said Izzaddin.

MAHB managing director Tan Sri Bashir Ahmad recently told reporters that the new LCCT that will be ready by March 2012 will be bigger than previously planned.

However, details of the revised cost, size and capacity of the new LCCT have yet to be announced. The project was originally supposed to cost RM2 billion and cater for 30 million passenger per year, with potential capacity for 45 million passengers per year.

Prior to yesterday's main contractor award, MAHB had given out two other contracts for the new LCCT project. The first, worth RM362 million, was given to WCT Bhd last December for site preparation, earthworks and main drainage. In January, a RM291 million contract was awarded to Gadang Bhd to carry out earthworks for the runway and taxiways.

By Business Times

CapitaMalls debuts at 1.5sen discount

CapitaMalls Malaysia Trust (CMMT), the country's largest shopping mall real estate investment trust (REIT), makes its debut today on the Main Market of Bursa Malaysia at 98.5 sen, a 1.5-sen discount over its institutional offer price of RM1 per unit.

Chief executive officer of CapitaMall Asia Ltd Lim Beng Chee said he was happy with the opening price because the retail investors were getting it at 98 sen while the opening price was 98.5 sen.

"This is just the day one pricing and they (CapitaMall Asia) has actually proven themselves to deliver with their active asset management," he told reporters after the listing ceremony today.

Lim said the company would start its RM2 billion asset development project within one year, based on the market situation.

He said retail investors were expected to get distribution yields of 7.2 per cent for the forecast period of 2010 and 7.6 per cent for 2011.

CMMT's initial public offering comprises 786.522 million units, of which 67.5 million were for retail investors (at 98 sen per unit) and the rest for institutional investors (at RM1 per unit).

CMMT is managed by CapitaMalls Malaysia REIT Management Sdn Bhd, a joint-venture between CapitaMalls Asia, which is one of Asia's largest shopping malls developers, and Malaysian Industrial Development Finance Bhd.

By Bernama

More Malaysians buying properties: iProperty

A iProperty.com consumer trends survey for the first half of this year showed more Malaysians looking to property for investment.

The online survey conducted on the iProperty.com Malaysia website, had the participation of 500 respondents and was aimed at getting key insights into Asian property buyers, including motivations for purchasing property and budgets.

In a statement today, the property website said of the 500 respondents, 47 per cent were looking to purchase a home whilst 31 per cent were investors seeking to expand their financial portfolio with real estate.

The survey showed motivation to invest for rental income dropped in 2010 whereas property investments for capital appreciation was on the rise.

It also said this increased preference to profit from resale could be attributed to rising property prices, as the Malaysian property market continues to improve.

A total of 43 per cent of the respondents were in the market for high-end properties valued between RM400,000 to RM5,000,000.

This represents a whopping 16 per cent increase in demand for high end properties with the RM500,000 to RM1,000,000 segment alone increasing by 10 per cent.

The survey pointed out that rising property prices, better rental returns and ultimately healthier resale profits, could be some of the reasons for an increased demand in high-end properties.

"As confidence in the property market grows, we are seeing more home buyers and investors turning to high-end properties as a means to profit from capital appreciation and expand their financial portfolios," said iProperty.com Malaysia, Country Manager, Ken Tsurumaru.

To meet this increasing demand for luxury properties, he said the incoming iProperty.com Export Luxury Collection Property Exhibition will be the biggest of its kind in Malaysia, showcasing luxury developments from across the globe.

By Bernama

RHG no longer part of Taragon Puteri project?

The opening of Rendezvous Hospitality Group (RHG)'s new 445-room business hotel within the Taragon Puteri Kuala Lumpur integrated development remains uncertain.

The reason is that Singapore-based RHG will no longer be involved in the project.

RHG chief executive officer Iqbal Jumabhoy when contacted by Business Times said: "The management contract for Rendezvous Hotel Kuala Lumpur has not been activated because conditions for the lease and operations have not been met."

The hotel was scheduled to open this month.

"As a consequence, we have closed the hotel pre-opening office in Kuala Lumpur and have ceased marketing activities at this stage," Jumabhoy said via e-mail.

A question on the likelihood that Rendezvous could return to Taragon, located on Changkat Thambi Dollah off Jalan Pudu, was unanswered.

A check on RHG's official website still stated that "under the brands of Rendezvous Hotels and The Marque Hotels, the group comprises 15 hotels with 3,350 rooms across Singapore, Australia, New Zealand and China, including a hotel under development in Malaysia".

A press release dated March 1 2010 on the appointment of Freddy Sim as the general manager for the hotel, is also available on the website.

Meanwhile, a spokesperson for Taragon when asked about these developments said: "Work on the site is on schedule and the hotel will open by January 2011."

In an interview with Business Times in March this year, Sim had said that Rendezvous was leasing the hotel portion and will also manage it. The duration for the lease was for 12 years plus six option years.

This leasing agreement in itself is unique in the Malaysian market, as most hotel operators here either own and manage or solely manage hotels.

RHG, a subsidiary of Straits Trading Co Ltd, is a relatively new but growing Singapore hotel brand. It plans to have 12,000 rooms by 2020.

RHG manages hotels under the Rendezvous and Marque brand through Rendezvous Hotels & Resorts International.

Asked about future openings for RHG in Malaysia, Jumabhoy said: "While we have no definite plans for Malaysia at this point in time, we are always on the lookout for any opportunity in the Asia-Pacific region."

By Business Times

KLCC Property wants single tenant for Lot C office building

KLCC Property Holdings Bhd is looking to secure a single tenant for its 840,000 net lettable sq ft Prime A office space at the Lot C development, located next to the Suria KLCC shopping centre.

"We are in discussions with a party," KLCC Property director Datuk Manharlal Ratilal told reporters after its annual general meeting in Kuala Lumpur yesterday.

He declined to elaborate.

Lot C's office building is due for completion by October 2011.
Its retail podium, which is expected to add another 140,000 sq ft of retail space to Suria KLCC, should be ready by the year-end, with the tenants moving in 2011.

"The retail podium will be contiguous of Suria KLCC. It will complement the retailers there (Suria KLCC) and allow Suria KLCC traffic to flow into it," KLCC Property chief executive officer Hashim Wahir said.

For the past three years, Suria KLCC has been registering more than 40 million footfalls (or the number of people who visit the mall) a year. Of this, 20 per cent are foreigners.

Lot C has a development cost of close to RM1 billion.

Another project planned for this year is the re-development of Kompleks Dayabumi.

"We are conducting feasibility studies into it and hope to start work this year," Hashim said.

No investment figure was given.

"This is part of our ongoing effort to improve performance. Kompleks Dayabumi has a lot of room for improvement considering its location," Hashim said.

For the current financial year, KLCC Property has managed to increase its office rental rate for Kompleks Dayabumi in Kuala Lumpur by RM1, from RM4 per sq ft to RM5 per sq ft through internal upgrades.

On the performance of its sole hotel, Mandarin Oriental Kuala Lumpur, Hashim said, occupancy levels for the initial part of the year were back to levels seen in 2009.

Last year, Mandarin Oriental's occupancy rate dipped by 10 per cent to 57 per cent.

By Business Times

LBS Bina to launch RM5b China project next year

Property developer LBS Bina Group Bhd will launch its fourth project, worth over RM5 billion, in Zhuhai, China, in the second half of next year.



The 60:40 joint venture of LBS and Jiuzhou Group, a Chinese government-linked company, has been delayed by three years because of the uncertain economic conditions.

LBS managing director Datuk Lim Hock San said the master plan for the 76ha project comprising high-end residential properties was under way.

He said that its launch had been delayed because of the global economic crisis.

"We took the opportunity to fine-tune the development with new products. We estimate that the project's gross development value (GDV) will exceed RM5 billion," Lim said.
The concept will be similar to the Tropicana Golf & Country Resort in Petaling Jaya, Selangor, which features a golf course, bungalow lots, high-end condominums and some commercial elements, among other things.

Lim was speaking to reporters in Petaling Jaya yesterday after signing an agreement with MIMB Investment Bank Bhd, a unit of EON Bank Bhd, to act as the principal adviser and lead arranger for a RM135 million sukuk (Islamic bond) programme to finance LBS' projects.

The signing was witnessed by Housing and Local Government Minister Datuk Wira Chor Chee Heung.

The sukuk programme will be the first Islamic private debt securities issuance in the country to be guaranteed by Danajamin Nasional Bhd.

Lim said that proceeds from LBS' fund-raising exercise would go towards its new projects in the country, such as Bandar Putera Indah in Batu Pahat, Johor; D'Puchong in Puchong, Selangor; and Taman Royal Lily in Cameron Highlands, Pahang.

The projects, with a total GDV of RM600 million, are slated to be launched in the second half of this year.

Lim also said that LBS was expected to be back in the black this year. It posted a net loss of RM16.8 million last year.

"From January up until now, we have achieved RM180 million in sales. We expect more income in the second half of the year from our new launches.

"The sukuk issuance will enable us to do property development on a whole new level. We are moving to medium- to high-end property development."

LBS' landbank comprises 920ha in the Klang Valley, Batu Pahat, Cameron Highlands, Ipoh and China, which will keep it busy for the next 10 to 15 years.

By Business Times

KLCCP gets strong interest for Lot C project

PETALING JAYA: Despite the uncertainty in the global economy, interest in KLCC Property Holdings Bhd’s (KLCCP) Lot C project is strong.

Lot C will add 140,000 sq ft to the current one million sq ft of retail and office space in Suria KLCC.

Director Datuk Manharlal Ratilal said the RM1bil development would be seamlessly connected to Suria KLCC.

“The project will complement Suria KLCC which has attracted about four million visitors annually for the past three years,” he said.

Of the 4.1 million visitors to Suria KLCC last year, 20% were foreign tourists.

Manharlal said KLCCP was in discussions with some companies keen to rent units at Lot C.

“Global uncertainties come and go and when we are managing a property complex as important as this, it is our objective to maintain a position of strength.

“We will not be too aggressive, (we will) think long term, make sure the project is good and not rush into things. For a complex such as this, we need time to plan,” he added.

KLCCP is also managing the Petronas Twin Towers and Menara ExxonMobil, both of which are fully tenanted.

It is planning to upgrade Menara Dayabumi.

The company also owns Mandarin Oriental Hotel, which is 57% occupied now due to the global economic slowdown.

By The Star

China says no change to property measures

SHANGHAI: China has denied it is easing restrictions aimed at cooling its red-hot real estate market, rattling Asia's major bourses on yesterday after reports that credit controls would be relaxed.

Dealers said the official comments led share prices in Shanghai to close 1.62 per cent lower, with a knock-on effect on Tokyo and Sydney's markets, which also closed lower.

Authorities in China have issued a slew of measures in recent months aimed at preventing the property market from overheating and causing a bubble that could derail the world's third-largest economy.

The Ministry of Housing and Urban-Rural Development has urged local governments to strictly comply with lending policies designed to curb speculative investment in property, according to a statement dated Monday.

The ministry said "positive changes had emerged in the property market" as a result of the measures and repeated it would increase the supply of affordable homes.

Chinese property prices in June fell 0.1 per cent from the previous month, their first monthly fall since the first quarter of 2009, according to official data.

The China Banking Regulatory Commission said in a separate statement that there had been no policy changes or revisions to mortgage requirements for second and subsequent home purchases.

"Commercial banks must strictly implement these rules unwaveringly," it said.

The remarks came after media reports said banks in first-tier cities including Beijing, Shanghai and the booming southern town of Shenzhen had resumed lending to buyers of third homes.

The reports pushed Chinese markets up 0.80 per cent on Monday.

The State Council in April said the down-payment for purchases of second homes must be at least 50 per cent and mortgage rates must be at least 1.1 times the benchmark rates.

The down-payment requirement and mortgage rates for purchases of third or subsequent homes must be "raised significantly" in line with banks' risk management policies, the cabinet said at the time.

Experts were mixed on how well the measures were working so far.

Zhang Gang, an analyst at Central China Securities, told Dow Jones Newswires: "It's too early to expect property tightening measures to turn around as the property prices didn't significantly decline." But Alastair Chan, an economist for Moody's Analytics, said there were signs that government policies were having an effect.

"China's residential property market is showing further evidence that the government's tightening measures are working, and the extent of the slowdown is likely to prompt a policy reversal in coming months," he wrote in a note.

Tokyo and Sydney's stock markets were both down yesterday partly on the decline in Shanghai, traders said, reflecting increasing linkages between the countries' economies.

In Chinese markets, property developers were hit yesterday shedding some of the gains from the previous session.

China Vanke, the nation's largest property developer by market share, fell 2.4 per cent to 7.46 yuan, after having risen 5.5 per cent in the previous session.

Poly Real Estate was down 4.3 per cent to 11.33 yuan after gaining 3.7 per cent the day before.

By AFP

MPHB-Bandar Raya deal to develop land

MULTI-PURPOSE Holdings Bhd (MPHB) has signed three memorandums of understanding with Bandar Raya Developments Bhd to develop several pieces of land in Penang and Selangor.

The two companies plan to combine their resources and expertise to development land owned by MPHB in Penang, Rawang and Gombak.

Entry into the agreements is in line with MPHB’s objective to develop its landbank into viable projects.

BRDB will be the developer of the proposed projects.

By Business Times

I-Bhd to talk with top Asian developers to expand RM2bil I-City

PETALING JAYA: I-Bhd executive chairman Tan Sri Lim Kim Hong is meeting top developers from Asian countries to discuss the expansion of the RM2bil I-City project in Shah Alam.

“We are looking for a big brand that is strong in property development to spearhead the next phase of growth in I-City,” he told StarBiz yesterday, adding that he was interested in the development concept of Shenzhen.

So far, he is targeting to meet the top three developers in Singapore, Hong Kong, China and Taiwan.

“Tan Sri Hamad Kama Piah (the president and group CEO of Permodalan Nasional Bhd – PNB) has done a good job as non-executive chairman, building up the infrastructure and network for the group,” said Lim. PNB has an 18.1% stake in I-Bhd.

Hamad, who was appointed non-executive chairman early last year, has resigned as non-executive chairman and director and is replaced by Lim, who was previously deputy executive chairman.

No reason was given for Hamad’s resignation but for Lim, the post of executive chairman is helpful when it comes to meeting big developers in the Far East as they are often interested to discuss with the top man himself.

In his statement last Friday, Lim said: “I-Bhd is pursuing a number of projects that would require a strong entrepreneurial input to deliver the value to shareholders.”

I-City has obtained the MSC Malaysia Cybercentre status from the then-Ministry of Science, Technology and Environment, and was endorsed as a tourism destination by the Tourism Ministry as well as given international park status by Selangor state government.

For the 12 months ended Dec 31, 2009, the group posted an after-tax profit of RM900,000 compared with RM15.3mil for the last financial year, mainly due to lower sales of completed units.

A final dividend of 3% comprising 1.77% less 25% income tax and 1.23% single-tier dividend was paid.

By the first quarter of this financial year, it had incurred an after tax loss of RM1.45mil compared with RM1.72mil in the last financial year.

“In two years, we will have to improve the dividend and expand the ICT as well as international park,’’ said Lim. Among the key components in I-City are the data centre park comprising four blocks of tier-4 data centres, the cybercentre office suite, the technopreneur centre and city of digital lights. There are now 100 MSC tenants in the ICT.

“We have to find out the concerns that foreign investors have and relay them to the state government,” said Lim, adding that assurances in black and white could be sought.

On the non re-election of Datuk Abu Hassan Kendut as director, and hence chairman of the audit committee, Lim said Abu Hassan did not seek re-election as a director.

“He did not give a reason but informed the company secretary, who then informed the board,” Lim said. “The board also noted that he had served for three years already. The independent directors on the audit committee are normally changed once every two to three years as part of good corporate governance.”

Apart from Abu Hassan, the other independent director who resigned from I-Bhd was Datuk Pengiran Mohd Hussein Mohd Tahir Nasruddin, who is now ambassador to Cambodia.

The board is looking to fill up these two positions in the audit committee which has only one member, independent director Monica Ong.

By The Star

KLCC Prop's new project to boost earnings

Manharlal Ratilal, a director of KLCC Property Holdings Bhd., comments on the developer’s new office and retail tower called Lot C which is scheduled for completion in Kuala Lumpur in October 2011.

KLCC Property’s main asset is the 88-floor Petronas Twins Towers in Malaysia’s capital, formerly the world’s tallest building. It is spending close to RM1 billion on Lot C, a new 59-storey tower complex next door with 840,000 square feet of rentable office space and 140,000 square feet of retail space.

Manharlal spoke to reporters after the company’s annual general meeting in Kuala Lumpur today. He also comments on the outlook for Mandarin Oriental Hotel, another property it owns neighboring Petronas Towers.

On Lot C’s contribution to earnings:

“We’re happy at the way things have progressed so far. It’s within budget and we think it’s going to be on target for Oct 2011, and it is going to add to more revenue earning capacity.”

On the impact of recently global economic uncertainty:

“We’re confident that we can get a very, very good occupancy rate. Global uncertainties come and go, but when we’re managing a property complex as important as this, it’s our job to make sure the fundamentals are strong and that whenever there’s a recovery we take advantage of that. We always want to be able to operate from a position of strength.”

On the outlook for the Mandarin Oriental Hotel:

“All the five-star hotels have seen some decrease in traffic arising from the after-effects of the financial crisis and the drop in business travelers. Also, a lot of business travelers being more conscious of the kind of class of hotels they’re allowed to stay in. What is important for us is that we keep on maintaining the Mandarin Oriental as the premium hotel in Kuala Lumpur. Of course, occupancy is down compared to previous years. It had a 57 percent average occupancy rate for the previous financial year.”

On land acquisition:

“The Kuala Lumpur City Centre area itself has adequate areas for development. We pace ourselves. We don’t want to be over-aggressive.”

By Bloomberg

Do property bubbles always lead to crises?

Many of the world’s biggest economic crises in recent years originated from property bubbles. The list includes the US “subprime” crisis (2008), Japan’s economic stagnation (1992 onwards); and the financial crisis in Sweden (1991), Finland (1991), Norway (1987) and Spain (1977).

They were all largely triggered by property bubbles popping.

Today, it is therefore understandable that investors are concerned about property bubbles in Asia, especially in China; how would the property bubble affect China’s economy, and by extension Asia’s and the world’s economy.



The important question today I believe is not whether major economic crises are usually triggered by property bubbles, but do property bubbles always lead to banking and economic crises.

Property bubbles certainly increase economic downturn risks, especially when they pop. However, we do not think it will always lead to a banking and economic crisis.

First, property bubble-induced economic crises occur largely because there is cheap money (i.e. low borrowing cost) and excessive bank lending, giving rise to investment frenzy, including speculation. When the bubble pops, banks’ non-performing loans (NPLs) rise, causing banks’ capital to be insufficient.

Confidence about banks’ financial health then comes into question, which may lead to a bank run. Banks are then forced to cut back on credit, which in turn affects the economy, turning the property price collapse into an economic crisis.

The key to see if a property bubble burst leads to an economic crisis or not is whether there is excessive lending (high margin, lax lending) and substantial lending (high total banking exposure to property).

One case in point is the China property bubble burst of 2008 where some house prices in Shenzhen dropped as much as 40% (yes, there was one, overshadowed by the much bigger US property bubble popping) but there was no banking crisis.

Surprisingly, NPLs of Chinese banks did not rise in 2008 (as one would expect when property bubbles burst); instead they continued to fall (China’s total bank NPLs have fallen from above 12% of total loans in 2004 to 1.4% in 2010).

Until today, China’s banks are relatively secure because many buyers are required to pay high down payments (from a minimum of 20% to 30% for first mortgage, to 40% to 50% for subsequent mortgages). This high commitment of home buyers partly explains the lower risk for banks and the low default rate of mortgages (NPLs for China banks in mortgage loans are traditionally low, now at about less than 1%).

Another example is high-end properties in Hong Kong and Singapore. While there is no doubt it is a property price bubble, the systemic risk to the banking system and economy is less because it is more prevalent to luxury properties, coupled with less excessive bank lending.

Second, the size (volume and price) of a property bubble determines the negative impact to the economy when it pops. To illustrate, if the price of a single property unit increases significantly and then crashes sharply, there is really little impact to the economy. However, if there were millions of such transactions built up over the years, chances are that when the bubble pops, it will have very severe damage to the economy.

In Asia, recent property bubbles had relatively short time to build. Take, for example, the high-end property bubbles in China, Hong Kong and Singapore, which started approximately from about 2006 before they tumbled in 2008.

Compared with the build-up for the last supersize property bubble of the US (estimate from 2001 to a collapse in 2008) or Japan (estimate from 1986 to 1991), the run-up in Asia’s property bubbles today (essentially from 2009) has perhaps less time to accumulate high numbers of property transactions to reach a supersize bubble.

For example, on Sept 30, 2006, US Federal Deposit Insurance Corp data showed real estate loans might be in excess of 40% of US banks’ total lending. As comparison, according to a PIMCO report in 2010, the share of loans in China’s real estate sector is less than 20% of total lending.

So, should we be worried about the impact of property bubbles bursting in Asia, bringing Asian economies towards an often quoted “double-dip recession”?

I don’t think so, largely because of the following reasons:

·Asia’s banking system is resilient after the 1997/98 Asian fiinancial crisis revamp and remained strong, during and after the 2008 global financial crisis.

·Asian governments are acting very fast in curbing property bubbles, not allowing them to get too big; in particular Asian governments believe in market intervention as compared with Western preference to let free market forces decide.

·Asian bank housing mortgages are “recourse financing” (meaning one is liable for all losses even if the property is auctioned) as compared with “non-recourse financing” in the US (meaning after the property is foreclosed by the bank, one is no longer liable for further losses), therefore Asia’s borrowers are more committed.

·It is a cultural norm and quite common in Asia for an extended family to chip in during times of difficulties to help mortgage repayment.

·Asia’s property developers are also more careful in managing risks after experiencing the 1997/98 Asian financial crisis; many, such as in Malaysia and Singapore, use joint ventures with land owners to mitigate some of the risks.

By The Star

Bandar Raya takes up stake in RM2.3b Johor project

Bandar Raya Development Bhd (BRDB) is buying Limitless Holdings Pte Ltd's stake in a RM2.3 billion waterfront project in Johor to strengthen its presence in the region and improve earnings.

BRDB, well known for its developments in the Bangsar enclave, Kuala Lumpur, wants to build more properties in Johor, riding on the success in Iskandar Malaysia, a spokesperson said.

"We calculated and evaluated the deal before buying the stake. It worked out well and we found it good value for our shareholders," the spokesperson added.

Based on a preliminary feasibility study, the project, dubbed "Residential North", is expected to generate gross development profit of RM700 million.
Construction work on the development featuring bungalows, detached houses, townhouses and condominiums in Puteri Harbour is expected to start in the third quarter of next year.

The project will take some six years to complete.

Limitless, a unit of the cash-strapped Dubai World, holds 60 per cent of Haute Property Sdn Bhd, which was formed in December 2007 to undertake the 44.4ha project. UEM Land Bhd, the master builder, owns the remaining 40 per cent.

It was reported that Limitless had decided to pull out of the project to raise cash and that BRDB had bought into Haute via its unit, Ardent Heights Sdn Bhd.

Ardent will pay Limitless RM75 million, which the latter had advanced to Haute as partial payment for development rights to the project.

It will also pay Limitless RM1 million to settle about RM10 million it had advanced to Haute to meet the latter's operating and development expenses.

"We are happy with the deal and also to be able to work with UEM Land, a reputable developer. We feel this is a good match. This is our first partnership together and we hope there will be more in time to come.

"We are seeking opportunities to grow in Johor and this is just one of the many plans we have," the BRDB spokesperson said.

BRDB is not new to Johor, having ventured there in the 1980s. By month-end, it will launch Straits View Residences in Permas Jaya, the first gated and guarded development in Johor with strata titles.

UEM Land, in an e-mail reply to Business Times' query, said there would be no impact on the project as BRDB was essentially stepping in to replace Limitless.

"We had decided to partner Limitless to tap their expertise in upmarket waterfront development and take advantage of their international market reach.

"Unfortunately, once the global financial crisis hit, we were unable to move this project forward as Limitless became entangled as part of the Dubai World group's debt restructuring plan, which in turn hindered the ability of Limitless and Haute to raise the required project financing.

"Because of this, both UEM Land and Limitless agreed to explore possible solutions to enable the Residential North project to move forward and we eventually agreed that BRDB replace Limitless as our joint-venture partner for this project," UEM Land said.

"In fact, with BRDB now coming in, we should be able to move the Residential North project forward," it added.

UEM Land said it was finalising the necessary agreements with BRDB and discussions were ongoing.

On project financing, UEM Land said it expects funds to be a mix of equity and debt (mainly project or bridging finance).

"Details of the funding plan will be finalised later, but, based on the financial strength of both BRDB and UEM Land, we do not foresee this to be an issue," it said.

By Business Times (by Sharen Kaur)

Bandar Raya, Multi-Purpose to develop land

Bandar Raya Development Bhd said it signed an agreement with Multi-Purpose Holdings Bhd. to jointly develop land totaling 670 acres in the Penang, Rawang and Gombak districts of Malaysia.

Bandar Raya’s business strategy is to enlarge its development land bank via joint ventures to improve profitability and shareholder value, it said in an exchange filing today.

By Bloomberg

iProperty.com to host big property event

iProperty.com Malaysia will present its Expo Luxury Collection 2010 at the Kuala Lumpur Convention Centre from July 30 to August 1, 2010.

The three-day event, with a total exhibition space spanning some 6,000 square metres, features over 100 property developers showcasing over 300 developments across the world, iProperty.com said in a statement today.

The expo, which will be the largest property event in Malaysia, is expected to attract more than 20,000 high net-worth home buyers and real estate investors from both local and international markets, the company said.

Local property developers include Sime Darby, Mah Sing, SP Setia, Ideal Homes, Dijaya Corporation, Glenmarie Cove, Putrajaya Homes, CDB Perdana, The Haven, Marina Island, Land & General, UEM Land, AP Land, IJM, TA Global, UDA Holdings, Mayland Development and Danga Bay.

International property investors will also find a range of distinguished properties in key high growth cities from Australia to Canada, iProperty.com said.

The showcase also features free property and investment seminars hosted by some of Malaysia''s most influential property market experts, international fund managers, trainers and best-selling investment authors, the company said.

"Expo Luxury Collection 2010 connects buyers and developers at an opportune time, with the ringgit strong against the dollar and demand for property at a high," said iProperty.com''s country manager Ken Tsurumaru said.

"Those keen to expand their financial portfolios with luxury real estate as a hedge against rising inflation should definitely visit the iProperty.com Expo Luxury Collection for excellent investment opportunities," he said.

Visitors will be able to enjoy incentives, including special on-the-spot home loan approvals for properties purchased at the exhibition and promotional giveaways exclusive to the show, iProperty.com said.

By Bernama

Sunway City to acquire Mega Capacity

KUALA LUMPUR: Sunway City Bhd yesterday entered into a share-sale agreement with Sunway Pyramid Sdn Bhd (SPSB) for the proposed acquisition of Mega Capacity for RM2.8mil.

In a filing to Bursa Malaysia, the company said it also entered into an agreement with Reco Pyramid (M) Sdn Bhd (RPSB) to acquire 48% equity in Sunway Pyramid and an agreement with Reco Resort Hotel (M) Sdn Bhd (RRHSB) to acquire 9.6 million ordinary shares of RM1 each in Sunway Resort Hotel Sdn Bhd for RM12.144mil, subject to post-closing working capital adjustment.

“RPSB and RRHSB have expressed their interest to dispose of their respective 48% stake in SPSB and Sunway Resort upon completion of the disposal of Sunway Pyramid and disposal of hotels which were owned by SPSB and SRH respectively to Sunway REIT,” it said.

Sunway City will continue to engage in the hotel business through its subsidiaries as SRH is the master lessee of the hotels and Sunway International Hotels & Resorts Sdn Bhd is the operator of the hotels as well as being engaged in the management of Sunway Pyramid shopping mall.

By Bernama

Bayu Melati in deal on residential project

MELATI Ehsan Holdings Bhd's wholly-owned subsidiary, Bayu Melati Sdn Bhd has entered into a development agreement with Tengku Shahrudin Sdn Bhd to undertake a residential development project.

The proposed development, known as Bukit Tengku Shah Alam, will allow Melati Ehsan through Bayu Melati to generate revenue and profits to the group.

The proposed development would expand the property market of the Melati Group in a strategic location in Selangor.

By Bernama

Ivory Properties to list on July 28

PENANG-based Ivory Properties Group Bhd, which postponed its listing in May, is now expected to float is shares on July 28.

In a statement to Bursa Malaysia yesterday, the company said balloting of share applications will be carried out on July 21.

AmInvestment Bank is the managing underwriter for the firm’s initial public offering, which will raise RM45 million in proceeds.

By Business Times

Property prices in China fall as curbs bite

BEIJING: Chinese property prices in June recorded their first monthly fall since February 2009, providing further evidence that a government drive to let the air out of an inflated market is working.

Average prices in 70 cities edged down 0.1 per cent from May, lowering the annual property inflation rate to 11.4 per cent in June from 12.4 per cent in the year to May and April's reading of 12.8 per cent, the National Bureau of Statistics said yesterday.

Coming on the heels of much slower import growth and a controlled moderation in bank lending, the figures reinforced the conviction of many economists that no further policy tightening is on the cards.

However, with surprisingly resilient exports offsetting softer domestic investment, the consensus is that Beijing will not be rushed into relaxing policy either until clearer signals emerge from the all-important property and construction sectors.

A prominent developer said China will not relax its property tightening policies any time soon and home sellers will face more pressure to cut prices in the third quarter,

Ren Zhiqiang, the outspoken chairman of Huayuan Property, cast doubt on the potential for any imminent change.

"The current policy will last for a pretty long period of time," he told a forum. "The government will not lightly ease policy."

"Currently the Chinese property market's at a crossroads. It's a game of who blinks first," said Dong Tao, chief China economist at Credit Suisse in Hong Kong.

"This is a turning point of the overall property price trend," Yang Hongxu, a Shanghai-based analyst with E-House China R&D Institute, said.

"The decline will continue for several months once the trend is consolidated - probably lasting into the end of this year or the beginning of next year," he said.

Chinese authorities have issued a slew of measures in recent months as they seek to prevent the property market overheating and causing a bubble that could derail the world's third-largest economy.

The authorities have so far tightened restrictions nationwide on advance sales of new developments, introduced curbs on loans for third home purchases and raised minimum down-payments for second homes.

Chinese media reports have said a property tax could be imposed on a trial basis in Beijing, Shanghai, the southwestern mega-city of Chongqing and the southern city of Shenzhen.

Qin Hong, a senior researcher at the housing ministry, said China would impose the tax "at an appropriate time" as a "long-term measure" to regulate the sector, the official Securities Times reported yesterday.

China currently has no such levy on residential property but does impose a 1.2 per cent tax on 70-90 per cent of the value of commercial real estate.

By Reuters, AFP

LBS Bina to issue RM135m sukuk to finance housing projects

PETALING JAYA: Property developer LBS BINA GROUP BHD is issuing RM135 million sukuk to part finance three projects in Malaysia, group managing director Datuk Lim Hock San said on Tuesday, July 13.

The proceeds will be utilised mainly for proposed development projects in Bandar Putera Indah in Batu Pahat, Johor, Puchong in Selangor, and Taman Royal Lily in Cameron Highlands, he said.

"The total gross development value of the three projects is RM600 million," Lim told reporters after a signing ceremony for the issuance witnessed by Housing and Local Government Minister Datuk Wira Chor Chee Heung here on Tuesday.

The sukuk will be the first private-debt Islamic securities issuance in Malaysia to be guaranteed by Danajamin Nasional Bhd, the nation's first financial guarantee insurer.

EON Bank Bhd's unit MIMB Investment Bank is the principal adviser and lead arranger for the issuance. The first tranche will be within the current month.

On the projects, Lim said the 26 units of medium-cost properties in Cameron Highlands were all sold, while the Batu Pahat project and high-end super-link three-storey properties in the D'Puchong project will be launched within 2010.

"We are confident that the units will be taken up very fast," he said.

The group has a landbank of about 930.7 hectares in Malaysia and China, which will ensure its continuous operation for the next 10 to 15 years.

Its executive director Alan Chia said with the launch of the new projects and some launches in 2009, the group aimed to return to profits in 2010 or 2011 after registering its first loss last year.

"In 2007 and 2008 we foreseen the crisis coming and therefore we did not launch any medium range product. But in 2009 we were aggressive in launching new products," he said.

Chia said in 2009 sales touched RM317 million and for this year sales had so far reached RM180 million.

"Profit of the sales will come in this year and it will be realised next year. So, we expect to break even or post a small profit this year and better profit in 2010," he said.

Lim said more projects would be launched this year amid the favourable outlook for the property market for the next two years.

"With Danajamin guarantee, the issue will be rated AAA (fg), thus allowing LBS Bina to raise funds from the sukuk market at a competitive rate, even in this risk-adverse environment," said EON Bank Group's chief executive officer Michael Lor.

By Bernama

IJM hopes talks on JV Selangor flood project can conclude soon

PETALING JAYA: Radiant Pillar Sdn Bhd, a 50:50 venture between IJM Land Bhd and Kumpulan Europlus Bhd (K-Euro), which is undertaking the proposed development of the 2,500-acre Canal City land in Selangor, is negotiating with a state government agency to mutually settle the termination of the flood mitigation project for Canal City.


'This is a good window period to launch higher margin products' says IJM LAND BHD MD DATUK SOAM HENG CHOON

“Hopefully the negotiation can be wrapped up soon,” IJM Land managing director Datuk Soam Heng Choon told StarBiz.

Under an earlier agreement with the previous state government, the deal involved a flood mitigation project in the form of an 18km-canal linking Sungai Klang and Sungai Langat. In return the company will be awarded the land for development.

However, the new state government, which took over after the March 8, 2008 general election, has decided that there is no need for the flood mitigation project.

It is understood the settlement potentially includes the outright purchase of the land from the state government.

Radiant Pillar has started part of the work and a settlement has to be worked out with the state government.

IJM Land’s parent, IJM Corp has a 25% stake in K-Euro.

A source revealed that the state government preferred the joint venture company to buy the land outright.

If it materialises, the land, located directly behind the matured Kota Kemuning township, will turn IJM Land into one of the leading township developers in the Klang Valley.

For the financial year ended March 31, 2010 (FY10), IJM Land turned in record sales of RM1.25bil against RM733mil registered in FY09. The company has lined up RM1.5bil worth of projects for launch in the current financial year.

Soam said IJM Land would leverage on its strong property sales to launch more higher end projects in the coming months.

“With the prevailing low mortgage rates and stronger market sentiment, this is a good window period to launch higher margin products,” Soam said.

He said the company would remain vigilant of any change in market sentiment, especially in the external front, and would implement the necessary strategies to stay competitive.

In the last two years, its projects in Penang were the major contributors to property development earnings, accounting for more than 30% of group earnings.


With gross development value of RM6bil, The Light project in Penang is the largest in IJM Land’s portfolio

The major earnings driver going forward will be its flagship waterfront development, The Light, featuring residential, entertainment, business and hospitality facilities in one hub.

With gross development value (GDV) of close to RM6bil, the 152-acre mixed residential and commercial development is the largest project (in terms of development value) in IJM Land’s portfolio. The project will be developed over the next 12 to 15 years.

Since its launch last year, RM280mil in sales have been registered from The Light.

In Johor, IJM Land owns 1,188 acres in Kota Tinggi, near Desaru, which is being developed under the Sebana Cove resort-cum-residential project. Planning is now in progress to transform it into an upmarket eco-friendly and health-cum-lifestyle themed residential and marina resort development.

The 10-year project is expected to have its maiden launch in the later part of 2011.

Soam said IJM Land was also targeting the growing Kota Kinabalu market and planned to launch an exclusive condominium project, with a panoramic view of Likas Bay and Kota Kinabalu city centre later this year. The 8-acre project has a GDV of RM160mil.

Soam said that under the company’s long-term strategy, it was looking to venture into new markets such as Vietnam, China and Indonesia.

However, contribution from overseas would not be significant in the next three years.

“Initially, we will take on small and more manageable sized projects and will expand gradually according to market needs.”

IJM Land’s maiden offshore project will be a mixed development in Vietnam comprising four blocks of high-rise residential apartments and retail and commercial property on 2.85 ha in Phu Hoi commune, Nhon Trach city centre in Dong Nai Province.

Last month, it acquired a 70% stake in Sova Holdings Sdn Bhd which is undertaking the US$150mil joint-venture development with Thai Duong Company-Sunco, a Vietnam state-owned company.

Piling work for the initial phase is currently in progress and the sales launch is expected to be in the third quarter of this year.

In China, the company has a RM500mil upmarket residential and retail development in Changchun, the capital city of Jilin province in northeast China.

“We are in the plan submission stage now and is working towards launching the project next year,” Soam said.

By The Star

Ivory Properties to raise RM45m from IPO

Penang-based Ivory Properties Group Bhd, enroute for listing on the Main Board of Bursa Malaysia by end of this month, expects to raise RM44.9 million from its initial public offering (IPO).

Proceeds from the IPO will be used to repay bank borrowings and for working capital, said Chairman/Group Chief Executive Officer Datuk Low Eng Hock in a statement today.

The IPO consists public issue of 44.9 million new ordinary shares at RM1 offer price per share comprising 9.3 million new shares for application by the Malaysian public.

A total of one million new shares have been reserved for eligible directors, employees and business associates of Ivory and subsidiaries and 570,000 new shares for Bumiputeras.

In addition, 16.17 million shares are offered at RM1 offer price to Bumiputera investors.

"The listing will further enhance Ivory and its subsidiaries’ ability to complete the property development projects and will also beef up financial muscle to undertake bigger projects, both within the country and abroad," he said.

The company is forecasting a proforma consolidated profit after tax of about RM33.86 million for the financial year ending Dec 31, 2010.

Last year, it registered RM17.7 million in profit after tax.

Established in 1999, the property development company has secured projects with a gross development value (GDV) of RM1.51 billion comprising completed and on-going projects.

The completed property development projects accounted for GDV of about RM675.62 million while the on-going projects accounted for GDV of about RM834.09 million which are slated for completion in the next few years.

Ivory's future property development projects include Penang Times Square''s (Phase 3 and Phase 4), Mount Erskine Development comprising The Peak Residences, Taman Bukit Erskine, The Latitude and City Mall at Jalan Tanjung Tokong," he added.

By Bernama

Dubai World property arm sells off Malaysia stake

DUBAI, United Arab Emirates: A property arm of struggling state conglomerate Dubai World is backing out of a plan to build luxury homes in Malaysia as it looks to shore up its finances.

The cash-strapped company's Limitless division is selling off its stake in a partnership with Malaysia's UEM Land Holdings Berhad to develop waterfront land in the southern city of Nusajaya.

Limitless will generate about US$23.8 million in the deal, according to a regulatory filing on Malaysia's stock exchange.

Limitless said in a statement Sunday that it continues "to review our business activity to reflect market conditions."

The company's parent Dubai World needs cash as it works to pay back $23.5 billion in debt.

By AP

Bandar Raya firm buys Limitless' 60pc stake in builder

PROPERTY developer Bandar Raya Developments Bhd said its subsidiary has bought 60 per cent of a building company from a unit of state-owned conglomerate Dubai World.

Bandar Raya's subsidiary Ardent Heights has entered into a deal to buy Limitless Holdings Pte Ltd's entire stake in Haute Property Sdn Bhd for a nominal sum of RM1, the Malaysian firm told the stock exchange.

Ardent will pay Limitless RM75 million which Limitless had advanced to Haute towards partial payment by Haute for the development rights of a building project in Johor.

Ardent will also pay Limitless RM1 million to settle about RM10 million advanced by Limitless to Haute to meet Haute's operating and development expenses for the project, Bandar Raya said.
Malaysian builder UEM Land owns the remaining 40 per cent in Haute.

Dubai sent global markets into turmoil at the end of last year when Dubai World asked creditors for a standstill on debt mainly linked to its two property firms Limitless World and Nakheel, builder of the Gulf state's eye-catching palm-shaped islands.

Dubai had said on July 3 a committee overseeing Dubai World, which is in a deal with core lenders to restructure US$23.5 billion (RM75 billion) in debt, had handed responsibility of property unit Limitless to Nakheel.

By Reuters

'Mah Sing revenue could rise to RM7.5b'

Property developer Mah Sing Group Bhd is likely to record a revenue increase of 18 per cent to RM7.5 billion and improve earnings sustainability to six-seven years with the recent land acquisitions and unbilled sales.

In a research note today, Kenanga Investment Bank Bhd said the three projects on the acquired land were located in matured areas with high population catchment, ample accessibilities and large upgraders market since there were few new developments in these areas.

"We are comforted by the group's proactive management in replenishing its gross development value given the rapid launches and swift sales," it said.

The investment bank said the positive improvement in its revenue would include the RM1.1 billion unbilled sales.

It said replenishing township developments via Kinrara project was a plus as the group's existing township landbanks were depleted while mass market provided steady cash flow and tended to be self-financing.

"Although the three new projects will bring in substantial future revenue, the group intends to pace its other project launches to achieve steadier 20 to 25 per cent year-on-year growth over a longer period as opposed to sharp over 25 per cent growth over a shorter term," it said.

Meanwhile, MIDF Research said the proposed developments would provide earnings visibility as well as a buffer to the proposed IFRIC15 standard, where the group might see some lumpy earnings.

In its research note, MIDF said it anticipated a slowdown in land acquisitions from the group in near future as orderbooks remained full and an increase in overnight policy rate might decrease potential and attractive landbank valuations.

Mah Sing rose three sen, or 1.775 per cent, to close at RM1.72.

By Bernama

Mah Sing gains on land purchase

Mah Sing Group Bhd, a Malaysian property group, rose the most in five days in Kuala Lumpur trading after agreeing to acquire land with a combined gross development value of RM1.1 billion (US$340 million).

The stock gained 1.8 per cent to RM1.72 at 11:07 am local time, set for its steepest increase since July 7.

By Bloomberg

LBS Bina plans Sukuk programme for housing devt project

KUALA LUMPUR: LBS BINA GROUP BHD share price unchanged at 48 sen at midday Monday, July 12, ahead of proposed multi-million ringgit Sukuk programme to finance its housing development projects.

At 12.06pm, unchanged at 48 sen, off early high of 49.5 sen with 88,200 shares done.

MIMB Investment Bank Bhd to sign with LBS Bina on Tuesday to be its principal adviser and lead arranger for Sukuk programme.

The Islamic securities issuance will be guaranteed by Danajamin Nasional Bhd, the nation's first financial guarantee insurer.

By The EDGE Malaysia

Good uptake for serviced units

With the uptrend in the global economy, managers and operators of serviced apartments in the prime areas of Kuala Lumpur are seeing healthy occupancy rates for their units.


Choe Peng Sum at the balcony of a serviced apartment managed by Frasers Hospitality. He estimates there are some 30,000 hotel rooms in Malaysia compared with 2,800- 3,000 serviced apartments.

Frasers Hospitality Pte Ltd, the hospitality arm of Singapore-listed consumer group Fraser and Neave Ltd, is optimistic about the serviced apartments sector in Malaysia, says chief executive officer Choe Peng Sum.

“With the economy picking up, we expect to see more businesses coming into the country.

“Many of their personnel tend to remain in the country for long periods, like a year or two, and for them, staying at a serviced apartment is often a more viable option than putting up in a hotel,” he tells StarBizweek.

In fact, there appears to be a high supply of hotels compared with serviced apartments in Malaysia.

“As the economy picks up, we expect an increase in the supply of hotel rooms. An oversupply situation is likely to affect occupancy rates. However, the supply of serviced apartments in Malaysia is not very high.”

Choe estimates that there are some 30,000 hotel rooms available in Malaysia compared with 2,800-3,000 serviced apartments.

The company is currently in collaboration with Ipoh-based YNH Properties Bhd to set up a second serviced apartment project – Fraser Residence Kuala Lumpur.


‘Shorter stay packages can fit a lot of people’s b udg ets,’ says Melissa Ram.

The building is under construction near the Renaissance Hotel and should be operational by 2012.

Last month, it had a grand opening of its maiden serviced apartments, Fraser Place Kuala Lumpur.

At the time of opening, Fraser Place had an occupancy rate of 89% and was offering an initial promotional price of RM260 to RM300 per unit per night.

The units occupy floors nine to 30 of an integrated retail and office complex in Jalan Perak and comprise a total of 215 studios, one and two-bedroom apartments and penthouses.

On the global level, Frasers Hospitality also has a second brand, Modena, which caters to corporate individuals who are constantly travelling.

“We call this group of people ‘roadwarriors’. These units are for those looking for something that is a little less pricey but more than a budget hotel. Modena is a step down from our other brand offerings (in terms of price),” Choe adds.

The company currently has two serviced apartment schemes under the Modena brand in China, and is looking to set up four more projects there.

It is also looking at serviced apartments under the Modena brand in India, Singapore, Vietnam and Kuala Lumpur.

Frasers Hospitality currently manages 35 properties in 21 cities.

Virgin Properties Sdn Bhd, which has been operating the Lanai Gurney Corporate Suites off Jalan Ampang since April 2008, has seen “very good” occupancy rates in the first half of 2010 versus the same period of 2009, says chief operating officer Melissa Ram.

“We saw an average occupancy rate of 80% in the first six months of the year,” she says, adding that the company has also revised its marketing strategies to cater to short-term tenants.

“We’re looking at a different segment than what we targeted last year. Shorter stay packages can fit a lot of people’s budgets.”

Located just 2km from the KLCC area, Lanai Gurney targets mostly expatriates, corporate clients, government agencies, business travellers, filming groups and students. The rates range from RM1,000-RM3,800 per month.

Based on commercial standards, Ram says the rates of Lanai Gurney may be increased in the near future.

“Property prices within the vicinity have gone up and we are also planning to offer more services to our tenants in the future. So naturally, we plan to increase our prices.”

According to Ken Holdings Bhd executive director Sam Tan, the response to its recently launched Ken Bangsar high-end serviced apartments in Bangsar has been overwhelming which he attributes largely to the project’s good location.

Some 70% of its units have been taken up and the tenants are a mix of locals and expatriates. Ken Bangsar has 80 units that are priced from RM800 to RM1,200 per sq ft.

By The Star

When high-end living turns super luxurious

The benchmark for luxurious residences in the country has risen in the past few years and it is becoming more common to read about such properties fetching unbelievable prices, at least in this part of the world.

News that a Malaysian tycoon paid a whopping RM38mil for a triplex penthouse in Binjai On The Park shows that Malaysia has its fair share of affluent people with a penchant for exclusive high-end living.

Super luxurious residences are mostly located at very exclusive addresses, are very spacious and fitted with the best that money can buy.

Besides being the only condominium project with undisrupted view of the widely acclaimed KLCC vista and direct access to the sprawling KLCC park, the 14,300-sq-ft Binjai residence is one of only two such units.

The transaction is certainly a bright spark for industry players with projects in the KLCC vicinity. Afterall, the KLCC market is still relatively slow due to the current oversupply situation and the small tenancy market.

Things may start to look up again for the market if buyers feel it is the right time to buy to leverage on potential capital appreciation as prices have dropped from their previous pre-crisis high.

If the trend continues, the luxurious residential market will be huge in the next few years.

The growing globalisation and cross-border trade and investment will continue to fuel demand for such projects.

This is because there is an increasing number of “borderless” people who have businesses and homes in various corners of the world, and they will be looking for quality property to buy for investment or as their transit homes.

With Asia’s economy continuing to power on and proving its resilience, many newly rich Asians who have made it to the Forbes wealthiest list and successful people will be the next big market for these luxurious properties.

Complementing the super luxurious projects is the elite addresses.

While the KLCC and Mont’Kiara have the most number of high-rise condominiums in Kuala Lumpur, Bukit Tunku and Kenny Hills are the hot favourites for exclusive landed residential projects.

A number of projects, which were earlier planned for launch a year or two ago, have been put on hold because of the global financial crisis.

These include SP Setia Bhd’s Duta Grande, comprising 15 super-luxurious bungalows in Bukit Tunku. The 18,000 to 20,000-sq-ft units will be priced at around RM30mil each.

Another upmarket project nearby is offering villas of 16,000 to 19,000 sq ft that have price tags of RM20mil.

At such prices, the buyers can expect only the best including covered garage, car and passenger lifts, walk-in wine cellars, and spa to lap pool and home theatre.

Luckily for the buyers, the local property market has not gone overboard like in some of the more expensive cities, such as Shanghai in China.

A super-luxurious villa in the Chinese city recently changed owners for one billion yuan or about RM470mil. The three-storey villa is sited on 20 acres and has a built-up area of more than 40,000 sq ft.

No wonder the Chinese authorities are worried that the property market has overheated and have put in place various credit tightening measures to cool it down.

While such luxurious projects will attract the well-heeled and high net-worth investors to our shores and raise the profile of Malaysia’s properties, developers should balance such projects with other more affordable projects to meet the demand of the average buyers.

Deputy news editor Angie Ng says while things still look pretty much under control for our property market, it pays to remain vigilant and all stakeholders need to contribute towards a balanced and sustainable market.

By The Star

Selangor Dredging sub-unit wins bid for Singapore property

SELANGOR Dredging Bhd's (SDB) sub-subsidiary, has won its bid for an 18 year-old residential block on 63, Cavenagh Road, Cavenagh Mansions, Singapore for RM99.6 million, or S$42.38 million.

Yesterday, SDB announced that Teck Jin (Private) Ltd, the owner of the residential block, had accepted the offer by SDB Asia Pte Ltd.

The property comprises a site area of about 19,813 sq ft and has potential for development by virtue of it being located in District 9 which is one of the prime and desired residential areas in Singapore.

The project is expected to have a gross development value of RM205 million.

Due to its proximity to the Central Business District, Orchard Road shopping and entertainment belt, District 9 is popular for its exclusive condominiums and high rise private apartments.

District 9 also constitutes the main shopping district of Singapore. Major department stores, hotels, boutiques and dining and entertainment venues are located there.

"The acquisition will provide an opportunity for SDB Group to further expand its property activities abroad and build the SDB brand name internationally," SDB told Bursa malaysia Bhd yesterday.

By Business Times

Mah Sing buys lands in Selangor

MAH SING Group Bhd has bought three parcels of land in Puchong, Sg Buloh and Bukit Jelutong in Selangor to build residential, commercial and industrial properties worth RM1.1 billion.

The first parcel of land, opposite the Kinrara Golf Club in Puchong, is to develop residential properties.

Mah Sing said in a statement yesterday that the project, dubbed Kinrara Residence, has an estimated gross development value (GDV) of RM730 million.

The second parcel, which is adjacent to the Rubber Research Institute land in Sg Buloh is for a commercial project, known as Star Avenue, worth RM280 million.
In Bukit Jelutong, Mah Sing will build i-Parc 3, an industrial project worth RM82 million, which is a continuation of its i-Parc brand.

Mah Sing said the 3 parcels of land will reinforce its strength as one of the few local developers to offer a complete range of properties in its stable, namely residential, commercial and industrial.

With the new land acquired, Mah Sing has projects with remaining GDV and unbilled sales of about RM7.5 billion in the Klang Valley, Penang Island and Johor Baru.

Some 59 per cent of the projects are residential properties. Commercial and industrial make up 36 per cent and 5 per cent respectively.

Mah Sing said the landbanks will keep it busy for some 6 years.

This year alone Mah Sing has acquired new projects worth RM1.9 billion for building works stretching to 2011 and beyond.

"We are pleased that our performance has been acknowledged with our most recent award, the inaugural The Edge Billion Ringgit Club awards where we were named recipent for Highest Compound Returns to Shareholders over 3 years," it said.

By Business Times

Suntrack sells 85pc of project before launch

SUNTRACK Development Sdn Bhd has sold 85 per cent of its RM115 million high-end project dubbed "SummerGlades" in Cyberjaya, Selangor, even before its launch.

The low-density development comprises 137 units of 2-storey terraced villas with a built-up of 3,000 sq ft. Each house is worth RM760,000 to RM1.2 million.

Project director James K.K.Tan said SummerGlades sold well because of the size of the houses, the layout and open space.

He said majority of the buyers are locals who work in Cyberjaya. Less than 5 per cent are investors from Indonesia.

"Cyberjaya is more vibrant now compared with five years ago. There is a lot more development here and this has improved demand for new housing.

"A house like that in SummerGlades will cost more if it is located in Kuala Lumpur. People are buying to live in Cyberjaya.

The project is located in the prestigious Perdana Lakeview West, just across the majestic 395ha Putrajaya Lake.

The layout has been conceptualised to be resort chalets cum holiday homes. There are several blocks of houses on curved streets, each with 3 or 4 units.

Each house has five bedrooms and five bathrooms. The living, dining and the bedrooms all have views of the garden and street landscape. Some houses are fronting a 2.4ha wetland park.

Tan said 40 per cent of the 9.2ha freehold project will be covered in green on flat ground, making it one of Malaysia's greenest developments around.

The guarded community is protected by 24-hour surveillance, guards and perimeter fencing.

Tan said SummerGlades will set a new standard for the property market.

The houses are designed to be green. Clay bricks are used for cooling effect. There is natural ventilation and lighting in every home.

"Our window frames are bigger performance window frames so they are more air tight. We are almost like a fashion designer so there will be very minimal post renovation work," Tan said during a media preview in Cyberjaya yesterday.

Tan said the project, which will be completed by first quarter 2012, will be submitted for the Fiabci, as well as CNBC, Bloomberg Asia and the Institute of Landscape Architects Malaysia awards.

By Business Times

SummerGlades in Cyberjaya offers affordable resort living

Property developer, Suntrack Development Sdn Bhd, has just introduced its latest residential project, SummerGlades. Located at the exclusive Perdana Lakeview West in Cyberjaya, SummerGlades’ double storey terrace villas are designed to give the feel of a resort chalet.


Suntrack Development Sdn Bhd project director James Tan presenting at the SummerGlades launch

Despite being an idyllic everyday getaway with an expansive view of the Putrajaya Lake, Summerglades is still within close proximity to Cyberjaya’s Street Mall, Equine Park Jusco and Alamanda Shopping Centre in Putrajaya. This spacious haven is a mere 25 minutes from Kuala Lumpur City Centre (KLCC) via the Maju Expressway. SummerGlades is further accessible through six other major highways.

The 23-acre development is a free-form street layout with curved streets, non-conventional grid lines, a six-acre wetland, and 10 manicured gardens. Every resident will be able enjoy the view of the gardens that surround SummerGlades from their very own living room, dining and master bedroom.

“SummerGlades is located in a prime area in Cyberjaya, which is a well-planned township with good infrastructure, and a thriving commercial centre. We saw great potential in the SummerGlades site and seized the opportunity to provide a unique residential development to cater to more discerning tastes,” explained Suntrack Development Sdn Bhd project director James Tan.

SummerGlades’ standard intermediate units are 24’ x 80’, while the standard corner lots are 34’ x 80’. Offering a variety of facades, built-up areas range from 2,945sq ft to 3,050sq ft, and units are priced from RM759, 800 to RM1.2million.

“With only six units per acre, SummerGlades is a very low density development in a class of its own. The units are also well-designed from a technical perspective. Even minor details have been taken into account to ensure aesthetic value of the units and minimum post-purchase renovations,” Tan elaborated.

Every unit in SummerGlades is equipped with glass shower screens, air conditioning points with refrigerant piping and hot water piping. To ensure residents’ safety, each unit will have an automatic gate and security alarm system. SummerGlades also boasts a garden resort theme that features scenic walking, jogging and cycling trails, playgrounds, community lawns and orchards.

Explaining SummerGlades’ concept, Tan said, “This is not just any property. SummerGlades prides itself on being different by ‘borrowing space’ from the surrounding gardens. The substantial green area makes SummerGlades the new standard in the property market. From the jetty at the wetlands, to the fruit bearing trees in the community orchard, our concept is one of a kind. SummerGlades will give residents a special lifestyle, allowing them to raise their children in a natural environment.”

With 65% already sold, the project will begin construction next month and is estimated to be completed in March 2012. SummerGlades has an estimated gross development value of RM115 million.

For more information, call Suntrack Development Sdn Bhd at 03-8318 3188/89 or visit www.summerglades.com.my

By The Star

Mah Sing buys land with GDV of RM1.1b

Mah Sing Group Bhd has acquired three pieces of land in the Klang Valley which have a combined gross development value (GDV) of about RM1.1 billion.

In a statement today, Mah Sing said the land would reinforce its strength as one of the few developers in the country to offer a complete range of properties, namely residential, commercial and industrial developments.

"These land are earmarked for projects in Mah Sing’s Residence (medium to high-end residential), commercial and i-Parc (industrial) series of property developments.

"One piece of land will be developed under the Residence series is the landed medium to high-end, gated and guarded project -- Kinrara Residence -- which will involve 50 hectares," it said.

It said due to the scarcity of land in Kinrara, its increasing popularity and burgeoning population, there was a pent-up demand for gated and guarded landed properties with good concepts and themes which provided good value.

"A portion of the land has been reserved and surrendered for building a secondary and primary school in Kinrara Residence, which will add to the overall appeal of the project.

"The development of the residential project will commence by year-end," it said.

Another project, Star Avenue, would focus on commercial development involving three-storey shops, retail lots and offices incorporating a neighbourhood lifestyle mall, it said.

Mah Sing said i-Parc 3@Bukit Jelutong would see the development of low-density semi-detached factories on 4.38ha.

It said for the first six months of this year, it has acquired new projects with a combined GDV of RM1.9 billion.

"With the healthy balance sheet, low net gearing of 0.05 time as at end-March 2010, the company will still be able to acquire more prime land," it said.

It said currently, it has projects with remaining GDV and unbilled sales of about RM7.5 billion.

By Bernama

VPC sets eyes on UK and Mideast markets

KUALA LUMPUR: VPC Asia Pacific Ltd, a regional grouping of international property consultants, is looking to expand its property valuation practices to Britain and the Middle East via its partnership with Britain-based Cluttons LLP, a leading chartered surveying firm, according to regional chairman James Wong.


James Wong (extreme left) shakes hands and exchanges documents with Bill Siegle at the signing ceremony. Looking on are Tan Sri Bernard Dompok (second from left) and Trevor Mills.

“Many Malaysian property developers, leisure and hospitality operators and manufacturers were exploring opportunities beyond borders, especially within the Middle East and Europe – regions that Cluttons has a presence in,” he said at a signing ceremony between both parties yesterday.

Witnessing the event were Plantation Industries and Commodities Minister Tan Sri Bernard Dompok and British High Commission and trade and investment director Trevor Mills.

“Our collaboration with Cluttons will facilitate exchange of knowledge and specialised skills and help us to introduce the Asia-Pacific as a property destination to British and Middle East investors,” Wong added.

Wong, who is also the managing director of VPC Alliance (M) Sdn Bhd, said the tie-up would see both parties leveraging on each other’s network of offices and experience in the respective regions.

VPC Asia Pacific currently has 40 offices throughout the Asia-Pacific.

“The Asian property market, with the exception of Japan and Hong Kong, is less mature and needs to catch up with the European markets.

“Hence, there are a lot of prospects for property investments and developments in the Asia-Pacific region to offer to Cluttons clients to invest in the region,” said Wong.

Cluttons senior partner Bill Siegle said a key strategy for Cluttons was to get more than 50% of its business from international sources.

“Asia, particularly China and India, is the growth engine of the world and is expected to have the highest economic growth rates,” he said, adding that in May, the Dow Jones classified some Asian countries, such as China, Indonesia, India, Malaysia and Thailand, as emerging markets.

By The Star

Bandar Raya takes over as UEM partner

Bandar Raya Developments Bhd, a Malaysian developer, said it will replace Dubai World’s Limitless Holdings Pte Ltd as UEM Land Bhd’s partner for a residential project in the country’s southern Johor state.

It will buy Limitless’s 60 per cent stake in Haute Property Sdn for a nominal sum and reimburse the Middle East company RM76 million, according to an exchange filing late yesterday. Haute Property is a special-purpose vehicle set up to undertake the development in Puteri Harbour, Nusajaya.

By Bloomberg

Bandar Raya takes over

BANDAR Raya Developments Bhd (BRDB) will replace Dubai’s Limitless Holdings Pte Ltd as UEM Land Bhd’s majority partner in the “Residential North” of the Puteri Harbour Development in Nusajaya, Johor.

BRDB will buy Limitless’ 60 per cent stake in Haute Property Sdn Bhd for RM76 million in assumed debt.

Limitless is owned by Limitless LLV, a global master developer based in Dubai.

Haute has the rights to undertake the development of 44.96 ha of land in Nusajaya.

By Business Times