Bolton selling Campbell Complex owner for RM50mil

PETALING JAYA: Bolton Bhd plans to sell its unit that owns Campbell Complex in Kuala Lumpur for RM50mil.

This is part of the group's plan to dispose of its non-core assets and investments that do not yield reasonable returns.

Bolton told Bursa Malaysia yesterday that it had entered into a sale and purchase agreement with Shapadu Resources Sdn Bhd for the disposal of its entire stake in Lim Thiam Leong Realty Sdn Bhd, which owns the 20-storey complex.

The disposal will raise cash, which will be used to meet the working capital requirements and/or to repay borrowings of Bolton, it added.

Bolton said it would record a gain of RM3.16mil from the disposal, resulting in an increase in its consolidated earnings per share of 11.27 sen based on the present number of ordinary shares in issue for the financial year ended March 31.

By The Star

Bolton agrees to sell Campbell Complex

BOLTON Bhd has agreed to sell its 20-storey commercial complex known as Campbell Complex to Shapadu Resources Sdn Bhd for RM50 million.

The deal means selling its 100 per cent stake in Lim Thiam Leong Realty Sdn Bhd which owns the complex in Kuala Lumpur.

The sale is in line with its plan to sell non-core assets and investments that do not yield reasonable returns.

It will use the RM3.16 million gain from the sale to to repay bank borrowings and as working capital.

By Business Times

Starproperty.my d2.TV online portal brings new dimension to property hunt

PETALING JAYA: Need information on decor and design, or on the dos and don’ts on improving your dream home?

Look no further than StarProperty.my’s new online portal d2.TV featuring celebrities, real estate experts and rising stars of the realty and property market.

A first in Malaysia, d2.TV will take viewers through heaps of information and entertaining topics about the property and home decor lifestyle.

Celebrities like Xandria Ooi, Yuri Wong, Eric Leong and Jojo Struys will introduce viewers to beautifully designed homes and properties.

Videos will be uploaded weekly with each episode lasting not more than 10 minutes, said head of StarProperty.my Martin Chow.

“Viewers can choose episodes from the series in which they are interested in and watch them as they please,” Chow said during the launch of the portal by Star Publications (M) Bhd group managing director and chief executive officer Datin Linda Ngiam at Cartrade, The Curve yesterday.

Chow said d2.TV is aimed at working adults looking for a fun and informative way to learn about buying and selling properties and quality interior design.

“It brings a fresh twist to searching for property and learning about interior design.”

Chow added d2.TV was also aimed at grooming up-and-coming realty millionaires. Ngiam said the portal had taken property search engines to a “whole new level”.

“When we launched StarProperty.my a year ago, we promised the portal will be more than a search engine,” Ngiam said.

“This is a testament to The Star’s passion and commitment to providing great content.

“And this is just the beginning.”

By The Star

Qatar MRT project on Gamuda's radar

GAMUDA Bhd said it is eyeing opportunities in the massive US$45 billion (RM141 billion) mass rapid transit (MRT) project Qatar is planning to build next year.

Qatar is building the new infrastructure as it prepares to host the 2022 Fifa World Cup finals.



Gamuda group managing director Datuk Lin Yun Ling said the MRT system will be part capital city Doha's key transport infrastructure.

"The Qatari government needs the entire system to host the event and tender is expected to be announced next year, and when that happens, Gamuda will be ready to submit its tender," Lin told reporters after its shareholders' meeting in Shah Alam, Selangor, yesterday.
Lin said Gamuda has a good track record and is well-positioned to take part in construction projects in the Middle East, especially in Qatar as it is involved in the ongoing construction of the New Doha International Airport.

Gamuda's other on-going projects in the Middle East include the Dukhan highway in Qatar and the Sitra causeway bridges in Bahrain which are due to be completed by year-end.

On its property development projects, Lin said the company expects to rake in a record RM1 billion worth of sales this year and another RM800 million in unbilled sales.

Gamuda is anticipating total sales of RM5 billion in the next two years, of which RM2 billion will be from local sales while the remaining RM3 billion from its Gamuda City project in Hanoi.

"The property market is hot at the moment due to low interest rates, and banks have a lot of loan provisions on this sector and people do not want to sit on cash and lose its value preferring to get involved in assets.

"Our landbank is ample and our priority is also to sell low-yielding landbank and develop innovative developments for other strategic landbanks." Lin added.

On the greater KL MRT project, Lin said the Cabinet has yet to approve its joint proposal with MMC Corp Bhd.

He said the government, Prasarana (Syarikat Prasarana Negara Bhd) and Spad (Land Public Transport Commission) will decide on the location of train stations, railway alignment, railway network and get feedback from the public and other stakeholders before Gamuda and MMC take up the offer to deliver the RM45 billion project.

By Business Times

Opal Damansara wins two prestigious awards

Opal Damansara by Sunway Damansara Sdn Bhd

Opal Damansara in Sunway Damansara has recently achieved two significant milestones due to its impressive design and layout. It is a 248-unit semi-d condominium that was developed by Sunway Damansara Sdn Bhd, a subsidiary of Sunway City Berhad and designed by Arkitek Maju Bina.

Defying the conventions of condominium living, Opal Damansara is inspired by a vision of a tropical paradise. Low-density units are nestled amidst lush landscaping to create a pristine and private retreat for those who crave a resort-living lifestyle in the city.

The semi-d concept whereby every unit in Opal Damansara is a corner has proven to be popular and well received. Residents enjoy the exclusivity of having only one attached neighbour. The Group has also ensured that residents are able to enjoy an enviable ambience within the project development by allocating 30% of the development for landscaping.

During the 3rd Asian Habitat Summit 2010 at Fukuoka, Japan, Sunway Opal Damansara Condominium was awarded the 2010 Green Asian Townscape Award at the annual commending grand ceremony.

The Asian Habitat Summit is held once every two years and the theme for the third summit was “Green Asia – Picturesque Cities.” The organisers of the 2010 Green Asia Townscape award are Fukuoka Asian Urban Research Center, United-Nation Habitat for Asia and The Pacific, Asia Townscape and Design Society and China Real Estate Association.

This forum encourages members to discuss the construction of residential environment in the Asian process of urbanization, exchange research results and boost sustainable development of the Asian undertaking of residential environment.

Another significant milestone for Opal Damansara was the win of the 2010 Design Grand Award of Chinese Residential Projects by the World Association of Chinese Architects (WACA).

WACA provides a platform for elite Chinese architects in the world to publicize their achievements and expertise. Through interaction and academic exchanges, it is hoped that WACA can raise the innovation and creativity amongst architects to serve the community. The 2009 Design Award is definitely a positive step towards that direction.

Sunway City Berhad Property Development Division, Malaysia managing director Ho Hon Sang said, “We are pleased that Opal Damansara has won these awards as it reflects the recognition that this development deserves based on its innovative design that promotes a green and sustainable lifestyle. We are also heartened to collaborate with Arkitek Maju Bina as they have provided solid consultation advice to enhance the living features for residents.”

“A lot of thought and effort has been invested in this project to create a practical living environment that is both contemporary and functional. Moving forward, homebuyers can certainly expect more innovative property development projects from the Group that echo these same values of excellence.”

Apart from the plethora of plants that make up the lush green surroundings, residents will find a wide array of facilities for their daily comfort that include landscaped gardens, children's play area, swimming pools, gymnasium, tennis and badminton courts, reading room, multi-purpose hall, surau and a gazebo.

Opal Damansara is located within the 400-acre integrated Sunway Damansara township with good access and proximity to facilities, commercial centers and shopping malls. The township is one of the most sought-after locations in Petaling Jaya.

Opal Damansara has also enjoyed good price appreciation which commensurate with this award-winning project. In short, this is another stellar project by the leading master community developer.

By The Star

MK Land sticks to strategy to cut debt

MK Land has so far locked in RM138 million in joint-venture projects, which will help it settle its loans in stages.

PROPERTY developer MK Land Holdings Bhd will continue with its strategy to form joint ventures for land development and selling land that it does not plan to develop to reduce its debt.

The group has settled borrowings by RM98 million to RM398 million through asset realisation exercises and more stringent cash flow management. In 2008, it was riddled with some RM550 million in debts.

Chief operating officer Lau Shu Chuan said MK Land has so far locked in RM138 million in joint-venture projects, which will help it settle its loans in stages.

Over the last two years, the group has made RM162 million in land sale after disposing of 9.3ha land in Damansara Perdana for RM150 million and 2ha land in Cyberjaya for RM12 million.
For the financial year ended June 30 2010, MK Land posted a RM11 million net profit on the back of RM308 million in revenue.

"We have put in place various strategies to improve operations and standards of services to strengthen relationship with bankers, contractors, consultants and purchasers," Lau said after the group's annual general meeting in Kuala Lumpur yesterday.

MK Land has some 2,025ha of landbank, of which 1,620ha is located in Lembah Beriah, Meru Perdana and Bukit Merah in Perak.

Lau said the group is waiting for the completion of the Alor Pongsu interchange in Perak before launching property development projects there.

"The construction is said to start next year and will be ready in two years. Hopefully we can start developing the land by then."

The Alor Pongsu interchange will ease the entries and exits to the North-South Expressway and is expected to boost the development in Bandar Lembah Beriah.

Meanwhile, in the Klang Valley, MK Land will continue with its ongoing mixed development projects in Damansara Perdana - three-storey semi-detached house projects namely Rafflesia, Armanee Terrace and Metropolitan Square.

It is also undertaking a RM3 billion project to develop affordable housing in northern Bangalore, India.

MK Land is partnering two other companies in the project - Embassy Group of India and MKN Embassy Development Sdn Bhd.

The project will be undertaken in four phases and developed within five years. It will potentially build 16,000 affordable houses, ranging from 650 to 1,200 sq ft, and about 560 retail outlets.

By Business Times

MK Land stays open to mergers If there is a strategic opportunity, group will not hesitate to consider

SUBANG JAYA: MK Land Holdings Bhd is not ruling out the possibilities of merging with other property players, according to chief operating officer Lau Shu Chuan.


MK Land’s previous project – the Metropolitan Square condominium in Damansara Perdana township.

If it (potential merger) is better for the company, why not? We're always open, he said after its AGM yesterday.

Lau said the group did not mind if someone with deep pockets was interested in such a proposition.

However, he said the group had yet to receive any proposals.

Lau added that they would look at the potential value if such an opportunity arose.

Commenting on the mergers and acquisitions in the property industry, Lau said companies were leveraging on one another and merged if there was a synergy.

We believe there is still room for niche market players, he said, adding that the product and location of the property matters if its landbank was strategic.

Meanwhile, Lau said the group hopes to achieve better results in the current financial year ending June 30, 2011 (FY11) boosted by ongoing projects and new launches.

He said the group had achieved improved financial results year-on-year since FY08.

For the first quarter ended Sept 30, MK Land posted a net profit of more than doubled to RM3.4mil from RM1.2mil a year ago.

However, revenue for the period was lower at RM61.7mil against RM80.8mil previously.

MK Land posted a net profit of RM11.2mil on revenue of RM323.5mil in FY10.

Our financial performance have been on an uptrend. Arising from this, we expect to maintain this kind of growth going forward, Lau said.

He said its main contributions would come from its projects in the Klang Valley as its other projects was somewhat weaker.

We're talking about RM100,000 to RM200,000 per unit for houses outside Klang Valley and a unit in the Klang Valley is between RM1mil and RM2mil, Lau explained.

The group has also sold some of its assets and the cash generated was used to pare down its borrowings.

Lau said it sold 23 acres of its land in Damansara Perdana and five acres of land in Cyberjaya.

The group had managed to pare down its debt to RM398mil as at June 30 from RM550mil in FY08 and intends to trim it further.

Lau said the group had managed to lock-in over RM300mil from the sale of its land and joint venture projects.

He said the money from selling its land had come in but expects cash inflow from its joint ventures to flow in over a period of time.

Our gearing of 0.36 times is not a frightening figure but we realised that we are paying a lot of finance charges.

The group still has capacity to borrow more. We're not over-geared. We may gear up ourselves in future if needed, Lau said.

MK Land has a total landbank of about 5,000 acres worth some RM800mil on its book.

In terms of market price, it could be higher, Lau said, adding that some 4,000 acres of its land were in the northern part of peninsula.

By The Star

Property merger mania and what’s in it for minoriy shareholders

An aerial view of Sunway City Ipoh

AGAINST the backdrop of still-distressed economic conditions in the Euro zone, Chinese inflationary worries and perhaps most disconcertingly, the war games in the Korean Peninsula, major shareholders, corporates and bankers are realising that the window for deal-making could be fast closing.

Also perhaps these deals are via the asset-liability route and requires currently only 50% approval compared to other routes which requires at least 75% approval from disinterested shareholders and thus want to take the opportunity now to do these deals without needing to entice a larger portion of minorities and with a price that may need to be good enough for the deal to go through.

These recent spates of deal making, however, need not necessarily be a bad thing if two key questions are answered: firstly, whether minorities are getting a fair and reasonable offer for their shares, and secondly, whether they have the option to ride on the upside of the merged entity's, if any.

First, the UEM Land-Sunrise merger. UEM Land has offered Sunrise shareholders RM2.80 for their shares in an all-stock deal, and has rejected calls to raise its RM1.4bil offer even though Sunrise shares have risen beyond the offer price.

Being an all share deal the minorities can ride on the upside nevertheless, if any.

The market price of Sunrise has risen above the offer price and minorities have the option to sell into the market.

As it stands, three of Sunrise's major shareholders, namely Datuk Tong Kooi Ong, Datuk Allan Lim and Tan Sri Tan Chee Sing, with a combined 40.34% stake have agreed to the offer.

However, UEM Land still needs another 9.7% for the deal to happen. This was where minorities, who had reason to push for a better price, may do so, or reject the deal.

As for the RM7bil merger plan between MRCB and IJM Land, the Employees Provident Fund, being a major owner in both entities looks like the kingmaker in this instance.

As master developer of the Rubber Research Institute's 3,300-acre parcel of land (next to Kota Damansara, Selangor), the EPF quite simply needs the expertise to make this new township a success, in line with the aims envisaged under the country's Economic Transformation Programme.

The property sector is key to Malaysia's growth, and the EPF needs developers that can build townships as well as commercial projects, in a broad plan that will benefit EPF members.

The proposed merger would be implemented through a scheme of arrangement under Section 176 of the Act, and while both companies have yet to come up with a definitive agreement, it has been stated that a new company would be formed, in which both IJM Land and MRCB would exchange shares, or a combination of shares and cash.

Shares in IJM Land and MRCB would be exchanged based on RM3.65 per share for IJM Land and RM2.30 per share for MRCB.

The offers represent a 19% premium and 7% premium respectively to IJM Land's and MRCB's last traded share price prior to suspension.

Pending further details, there appears to be a premium to the last traded prices, but the upside to this offer is the exposure to the potential of the 3,300 acre development, an area three times the size of Petaling Jaya.

Minority shareholders of both companies might take heart, since it seems illogical that the EPF would want to exit what was essentially a deal of their orchestration. The deal pricing, at 2.5 times price-to-book for IJM land and 2.6 times for MRCB, also appear fair.

Minorities might also want to see how IJM Corp, who as 60% owners of IJM Land, reacts to this deal. IJM Land, after all, did suffer from liquidity issues pre-merger plan, and such a deal would almost certainly boost liquidity.

A definitive agreement between MRCB and IJM Land was expected to be sealed by Dec 14 this year.

And lastly, the plan by Tan Sri Jeffrey Cheah to combine Sunway Holdings and Sunway City in a RM4.5bil deal.

Tan Sri's intention appears two-fold: firstly to create a bigger entity to win larger jobs, and secondly, to safeguard against hostile or unwanted takeovers.

A new company would be formed, where Sunway City would be valued at RM5.10 a share, or a fairly high PE of 12.4 times 2011 earnings, itself at the higher end of the company's 0.5-12.5 times historical PE ratio band.

Sunway Holdings, whose shares are valued at RM2.60 a share under Tan Sri's offer, translates into a PE of 10 times 2011 earnings, and 1.7 times price-to-book value.

Most significantly, Sunway's new company was said to be valued at 12.6 times 2011 PER, which was a significant discount to the other property developers such as SP Setia's 22.8 times, UEM Land-Sunrise's or IJM Land-MRCB's which was above 30 times.

It is easy to see the respective intentions behind all three deals to create bigger companies to give capacity and capability as well as attracting more investors with the bigger size.

A bigger footprint also puts the merged companies under the radar of foreign institutional funds, which was good for capital markets. It was also an argument that applies to a merged Sunway property-construction company.

But deal making and the travails of the global economy aside, the concept of Quid Pro Quo should operate: make it win-win for all parties involved, otherwise expect time to be wasted before the deal can be concluded.

In any case the primary and initial concern should be to obtain the unequivocal buy-in of the minority shareholders?

Beyond question, property companies with significant land banks, financial strength and development expertise would be crucial in succeeding in the future, especially since there are broad expectations for the property sector to stabilise and morph into a medium-housing play in the medium- to long-term, minus the hefty margins of today.

It's just that in the process of getting there, everyone should benefit.

And minority shareholders, who many of them took the earliest leap of faith with the companies involved, should be the ones that need to be given consideration in terms of fair price, first and foremost.

Rita Benoy Bushon is chief executive officer of the Minority Shareholder Watchdog Group

By The Star (by Rita Benoy Bushon)

KSL City shopping mall set for Sunday opening

Ku Hwa Seng posing with a model of KSL City, which includes two hotel blocks and two 33- storey apartment blocks.

JOHOR BARU: KSL Holdings Bhd will be opening part of its KSL City project development the four-storey retail complex on Dec 12.

Executive director Ku Hwa Seng said the retail complex would be Johor's largest shopping mall with a gross floor area of 880,000 sq ft and 2,800 indoor parking lots.

He said the podium block had 420 retail shops, 50 food and beverage outlets, and eight cineplexes, including two 3D screens.

Ku said the atrium of the retail complex would also house Johor's largest indoor electronic billboard made up of nine 62-inch flat-screen LCD televisions.

Work on other components of the project is progressing well and they are expected to be ready by the end of next year, he said in an interview with StarBiz.

Dubbed one of the biggest commercial complexes in the southern region, the RM500mil KSL City project also houses hotel and apartment blocks.

The project is also the first such development in Johor that combines retail, hospitality and high-rise residential living, similar to those found in Kuala Lumpur and Singapore.

The 1,000-room KSL Resorts Hotel comprises two 20-storey blocks while D'Esplanade Residence @ KSL City offers 346 units two 33-storey apartments blocks.

Glass Tower I and II offer 242 and 104 units respectively with built-up areas ranging from 93.83 to 929.03 sq m that are priced from RM500,000 each.

Our apartments have attracted Malaysians as well as buyers from Hong Kong and Singapore. With the influx of foreign investors to Iskandar Malaysia, we believe they will also snap up our units, said Ku.

He said the project's location in Century Gardens less than 3km from the Johor Baru city centre and the Johor Baru Customs, Immigration and Quarantine complex in Bukit Chagar would be a strong selling point to buyers.

Ku said KSL was confident that the hotel would do well, considering most hotels in the Johor Baru central business district were recording almost 90% occupancy rate.

He said Johor also benefited from Singapore's Sentosa World Resorts and Marina Sands Resorts as Malaysians planning to visit the resorts would probably stay in Johor Baru as the hotel rates in the republic were too costly for the average visitor.

Presently, Singapore is facing a shortage of hotel rooms and the average room rates of S$300 could further increase to S$500 by the time KSL Hotel is completed.

We are planning to have a tie-up with the two Singapore casino operators to provide shuttle bus services from KSL City to the two resorts, said Ku.

By The Star

RM1bil investment in Langkawi resort

Khazanah in joint-venture deal under master development plan

LANGKAWI: Khazanah Nasional Bhd, the investment holdings arm of the Government, expects to invest RM1bil with its partners between now and 2014 to develop Teluk Datai in Langkawi.


Peremba (M) Sdn Bhd director of development John Ballantyne (right) briefing Datuk Seri Najib Tun Razak during a tour of the Teluk Datai Resorts development. Accompanying them are Tan Sri Azman Mokhtar (left) and Peremba executive chairman Tan Sri Razali Rahman (second left).

Managing director Tan Sri Azman Mokhtar said the development would be done through Teluk Datai master development plan and Khazanah would get involved via its investee company Teluk Datai Resorts Sdn Bhd.

Under this master plan, we will re-invest in the existing hotels in Teluk Datai and investment in select pieces of earmarked land in an environmentally sensitive manner, he said yesterday at the launch of the master plan.

The plan was launched by the Prime Minister Datuk Seri Najib Tun Razak

In July, the group acquired 70% stake in Teluk Datai Resorts, which owns The Datai Langkawi hotel, The Golf Club, Datai Bay and 1,494 acres at Teluk Datai.

The remaining 30% interest in Teluk Datai Resorts are held by Tan Sri Razali Rahman and Datuk Hassan Abas through Archipelago Hotels (East) Sdn Bhd.

Azman said Khazanah's investment in Teluk Datai Resorts was in line with the Government's efforts to drive the economy upwards under the Economic Transformation Plan.

It is also consistent with the key thrust of the New Economic Model of moving Malaysia towards a high income economy, supported by high-skilled local labour force and sustainable products and services and embodies the spirit of collaboration and partnership between the public and private sector, he said.

The first of the projects under the plan was to enhance The Datai Langkawi hotel through the development of 14 luxury villas, expected to be completed in the first quarter 2012.

Teluk Datai Resorts had also commenced reviewing the realignment of The Golf Club, Datai Bay to upgrade the golf course and also enable the land to be optimised for beachfront development, targeted for completion in the third quarter of 2012.

At the event yesterday, Teluk Datai Resorts also signed a head of agreement with Shangri-La Hotels (M) Bhd for the establishment of a joint-venture company (51% would be owned by Teluk Datai Resorts) to develop a 5-star resort there that would later be managed by Shangri-La Int Hotel Management Ltd under the Shangri-La brand.

It was expected that there would be another premium 6-star hotel and a selection of premium villas for sale in Teluk Datai.

To preserve the environment during the development, Teluk Datai Resorts has engaged Camco South East Asia to undertake a sustainability study.

It also announced that the group had adopted Sekolah Kebangsaan Ewa as part of its corporate social responsibility initiatives.

By The Star

SP Setia posts 32% higher PAT on asset disposal, property sales

PETALING JAYA: Property developer SP Setia posted a 32% rise in profit after taxation (PAT) to RM75.2 million for the fourth quarter ended Oct 31 from disposal of an investment property in Bukit Indah, Johor.

Revenue rose 41.8% to RM558mil.

The company said in an announcement to Bursa Malaysia Thursday that profit and revenue were principally derived from property development activities carried out in the Klang Valley, Johor Bahru and Penang.

It added that other ongoing projects that contributed to profit and revenue included Setia Alam and Setia Eco-Park at Shah Alam.

Other significant contributors included Setia Walk at Pusat Bandar Puchong, Setia Sky Residences at Jalan Tun Razak, Bukit Indah, Setia Indah, Setia Tropika and Setia Eco Gardens in Johor Bahru, Setia Pearl Island and Setia Vista in Penang.

SP Setia said performance for the new financial year is expected to be underpinned by existing projects in the Klang Valley, Johor Bahru and Penang.

In addition, the company said the upcoming launch of KL EcoCity, an exciting new integrated green commercial development, was expected to contribute strongly to sales.

By The Star

Space for smaller property players

KUALA LUMPUR: Amid the large mergers taking place in the property industry, smaller players believe there is still space for niche property developers.

The recently announced mergers of six big property developers to create three enlarged entities will invariably change the Malaysian property scene.

In November, the property industry was jolted by the news of three proposed mergers as developers race to become bigger.

UEM Land Holdings Bhd got the ball rolling with the proposed takeover of Sunrise Bhd. With a combined market capitalisation of nearly RM10 billion and a landbank of over 12,000 acres, it will create the country’s largest property company by market capitalisation.

Shortly after, IJM Land Bhd and Malaysian Resources Corp Bhd (MRCB) announced plans for a marriage that will make the new entity the second largest, with a market capitalisation of about RM7.2 billion and over 9,000 acres of land.

Then Sunway Group’s Tan Sri Jeffrey Cheah and his daughter Sarena proposed to merge Sunway Holdings Bhd and Sunway City Bhd into a single entity, which will have a market capitalisation of RM3.3 billion and over 2,000 acres of land.

Being big has its advantages, as the players in the three merger exercises note. They include access to cheaper funding, increased investor interest and better economies of scale.

In the old landscape, two large players — S P Setia Bhd and UEM Land — stood out among many mid-tier companies. Even then, only S P Setia managed to garner substantial foreign investor interest, fetching premium valuations. By comparison, most property stocks traded below book value.

With the changing landscape, there will be four large players — UEM Land-Sunrise (market cap: RM10 billion), IJM Land-MRCB (RM7.2 billion), S P Setia (RM5.2 billion) and the merged Sunway (RM3.5 billion).

The three largest players will have price-to-book ratios of over two times, and price-to-earnings ratios of well over 20 times, which could set a new benchmark pricing for the sector.

Can the smaller players still hold their own and occupy strategic niches in the market post-merger?

Eric Chan, executive director of Eastern & Oriental Bhd (E&O), said there will still be a need for small property developers with a strong brand.

“There is definitely room for smaller, niche players. We can move faster, we have less red tape to deal with, we can have faster turnaround for our projects,” said Datuk Fateh Iskandar Mohamed Mansor, Glomac Bhd’s group managing director and CEO .

Tan Sri Leong Hoy Kum, Mah Sing Bhd’s managing director and group chief executive, said, despite the bigger merged entities’ stronger balance sheets there would still be room for niche players with a focus on their own strengths.

With a market capitalisation of RM1.5 billion, Mah Sing will rank among the top ten largest developers in the new pecking order. E&O and Glomac have smaller market capitalisation of RM940.6 million and RM505.2 million, respectively.

Interestingly, all three companies have also evolved into their current form from quite different entities, either through mergers and acquisitions, or diversification exercises.

Within the last decade, Mah Sing has evolved from being a successful plastics manufacturing company into a far more successful property developer, led by Leong, its entrepreneurial CEO and founder.

Meanwhile, E&O has a corporate history as colourful as the hotel it is named after, and is no stranger to mergers and acquisitions.

Helmed by low-profile businessman Datuk Terry Tham Ka Hon, E&O most recently conducted a Sunway-like merger exercise in 2008. Back then, E&O privatised its listed subsidiary, E&O Property Development Bhd (E&O Prop) into a single larger entity. That wasn’t the first privatisation attempt — a general offer exercise in 2005 saw E&O increasing its stake in E&O Prop, but not enough to privatise the company.

Glomac was listed in 2000, but its history started in 1988 when two entrepreneurs, Tan Sri FD Mansor and Datuk Richard Fong, joined forces to start a property development company.

Today, Glomac is recognised as a successful niche developer with a landbank of 900 acres. It continues to be run by the two founders, together with FD Mansor’s son, managing director Fateh. Glomac also holds the distinction of having sold the most expensive office space in downtown Kuala Lumpur. Menara Glomac, next to the KLCC Petronas twin towers, was sold for a record RM1,120 psf at the end of 2007, just before the financial crisis.

By The EDGE Malaysia (This article appeared in The Edge Financial Daily, December 8, 2010.)

Daiman to expand beyond Johor

JOHOR BARU: Daiman Development Bhd plans to expand to other parts of Malaysia after having been in the Johor property market for almost 40 years.

General manager Siah Chin Leong said the company had been looking for land in the Klang Valley for the past few years.

He said the areas that it had identified included Cheras, Kajang and Shah Alam but the land price there was too high and some of the land offered was not strategically located for housing projects.

We'll continue with our search. Sooner or later, we will find suitable land, Siah told StarBiz after the company's AGM recently.

He said apart from the Klang Valley, Daiman might also venture into Malacca, Negri Sembilan and Penang.

The company would even consider going into Singapore as demand for private properties there was still good due to the influx of wealthy buyers from abroad, he added.

In April 2008, Daiman's wholly-owned subsidiary Caversham Universal Ltd subscribed to a 70% equity in CNES Property Pty Ltd for A$875,000.

Australia-based CNES was formed in February 2008 and it is now building some bungalows in Perth.

Siah said demand for properties, especially residentials, in Johor had picked up after almost a two-year hiatus following the global economic recession.

He said this could be seen from the many new property launches, especially in Johor Baru, albeit the small number of units launched.

Siah said Daiman would launch 75 double-storey linked houses with prices from RM300,000 and 44 double-storey cluster homes priced from RM480,000 in Taman Gaya here in the first half of 2011. These units will have a gross development value (GDV) of RM40mil.

The company will also launch 68 double-storey cluster homes with a GDV of RM24mil in Taman Daiman Jaya in Kota Tinggi in the third quarter.

It will also offer 16 one-and-a half-storey semi-detached factory buildings with a GDV of RM30mil in Taman Perindustrian Murni Senai in the first quarter.

For the financial year ended June 30 (FY10), Daiman posted RM29.74mil net profit on RM123.319mil revenue compared with RM23.44mil and RM107.125mil respectively in FY09.

By The Star

Pantai plans Gleneagles hospital in Iskandar

PANTAI Holdings Bhd plans to build an estimated RM500 million hospital in Iskandar Malaysia, Johor, to help provide more world-class healthcare services in the country.

The hospital, to be called Gleneagles Medini Hospital, will be built on a 6ha site that Pantai is buying.

The land is in the mixed development area of Medini, Iskandar, the group said in a statement yesterday. It said Gleneagles Medini Hospital will be jointly developed with Global Capital & Development Sdn Bhd (GCD).

An agreement was signed between GCD, a consortium led by Mubadala Development, and Pantai's wholly-owned Pantai Hospital Johor Sdn Bhd.

"This development will set new benchmarks for quality healthcare to reinforce Malaysia's capacity in delivering world-class medical services to both Malaysians and foreign partners," Pantai chairman Khairil Anuar Abdullah said in the statement.

The healthcare complex will eventually comprise a 300-bed private tertiary hospital and a 150-suite medical office block with centres of excellence.

GCD chief executive Keith Martin said the group is proud to be working with Pantai. "The high standards set by Pantai are aligned with GCD's vision to ensure the best in planning, design and management within Medini."

By Business Times

Scond stage of LRT extension project estimated at RM1.7bil

The tender for the facilities works under Package B for both the Kelana Jaya and Ampang lines would be called upon approval of the final railway scheme, which is expected by mid-2011. — AFP

PETALING JAYA: Although the contract awards for the first phase (Package A) of the light rail transit (LRT) extension project have eluded the big construction players, the big boys will have another chance to bid for phase two (Package B), which is estimated to be worth about RM1.7bil, by the middle of next year.

On Nov 26, Syarikat Prasarana Negara Bhd (SPNB) awarded contracts worth RM1.7bil for Package A of the RM7bil LRT extension project involving the Kelana Jaya and Ampang lines.

The main contract of Package A of the Kelana Jaya line, valued at RM950mil, was awarded to Trans Resources Corp Sdn Bhd (TRC). UEM Builders Bhd and Intria Bina Sdn Bhd jointly won the sub-contract works worth RM93.2mil.

For the Package A Ampang line extension project, Bina Puri Holdings Bhd and Tim Sekata were jointly awarded the main contract and sub-contract works worth RM634.6mil and RM67.7mil respectively.

RHB Research Institute said that other players could still bid for jobs under phase two of the LRT extension project.

It looks like the first phase of the LRT line extension work packages have eluded big names such as Gamuda Bhd, IJM Corp Bhd (IJM), WCT Bhd, Sunway Holdings Bhd and Malaysian Resources Corp Bhd (MRCB).

However, there is always a second chance for these pre-qualified main contractors and sub-contractors to bid for the remaining works, it said in a recent report.

The first phase of the Kelana Jaya line would be a 9.2km extension from the Kelana Jaya station to Summit. The second phase would involve a 7.8km extension from Summit to Putra Heights.

Package A of the Ampang line involves a new 7.4km stretch from the Seri Petaling station to Station No. 5, while Package B would see a 10.3km extension from Station No. 5 to Putra Heights.

According to SPNB, the tender for the facilities works under Package B for both lines would be called upon approval of the final railway scheme, which is expected by mid-2011.

We estimate that the remaining work packages are worth about RM1.7bil as well, said RHB Research.

IJM and MRCB told StarBiz that they would be participating in the tender for Package B of the LRT extension project.

Kenanga Research said there were still contracts of significant value yet to be awarded under Package A of the LRT extension project.

Based on the newsflow, Package A for the Ampang line could be valued at RM1.5bil and Kelana Jaya line at RM1.9bil. With the recent contract awards to Bina Puri and TRC, there will be projects worth another RM600mil and RM800mil respectively left to be awarded in the short term, it said in a report.

By The Star

Tesco's 36th Malaysian outlet is in Seremban 2

TESCO stores hypermarket chain, the world's third largest retailer, opened its 36th outlet in the country on Monday, in Seremban 2.

The new RM107 million Tesco Extra replaced its old outlet, located a few metres away, with a much bigger building covering 15000 sq m to accommodate the growing demand in Seremban, Negri Sembilan.

Mentri Besar Datuk Seri Mohamad Hasan, who officiated at the opening ceremony, said the state government is pleased with foreign investors, especially hypermarkets giants like Tesco, opening up their stores in the state as they provide customers a wide range of products at low prices.

"There will be two more outlet openings soon in Senawang and Nilai and another approved project in Lukut, Port Dickson, with close to RM500 million investment in total," he said.

"I hope Tesco would consider opening stores in places such as Bahau to allow the people at the outskirts to enjoy hypermarket experience in their neighbourhood," he added in his speech.

Also present was Tesco Stores (Malaysia) Sdn Bhd chief executive officer Tjeerd Jegen.

Mohamad said small and medium entreprises are protected despite the entry of foreign retailers, as close to 85 per cent of the products sold at Tesco are local products.

"We want to ensure local industries are protected and not left behind," he said.

Jegen, who has been in the country for seven months, said the opening of the new store in Seremban had a special meaning to Tesco Malaysia as it is the birthplace of hypermarket's first ever Extra format.

"Tesco Extra is a completely new format to not only Tesco in Malaysia but also the group worldwide.

"The format supports and caters to the wider needs of small businesses apart from our end-user customers," he said, adding that the total overall direct investment in Malaysia has surpassed the RM4 billion mark.

Jegen said the new outlet boasts a new food court, a play area, 90 tenants and restaurants, more than 60,000 lines of products and 1200 parking lots.

"The store also provides close to 1,000 job opportunites as well as cares for the environment with 20 per cent less carbon emission with less use of air-conditioning and energy-efficient lighting.

"We hope to reduce carbon emission by 50 per cent in 2020 and become carbon-neutral by 2050," he said.

Jegen added that Tesco has created more than 13,000 jobs since its inception in 2001 and hopes to open more stores in the country in the near future.

By Business Times

RM500m Azea latest project in Danga Bay

A RM500 million high-end mixed development known as Azea Properties will be coming up on a 1.7ha site in Danga Bay, Johor Baru, one of the the key flagship zones within Iskandar Malaysia.

A joint-venture agreement to develop the commercial project was signed among Imperial Marine Pte Ltd, Danga Bay Sdn Bhd and Pembinaan Sahabatjaya Sdn Bhd in Johor Baru yesterday.

Johor Mentri Besar Batuk Abdul Ghani Othman, who is also the joint-chairman of the Iskandar Regional Development Authority, witnessed the signing ceremony. .

Imperial Marine, a Singapore-based property investment company helmed by Tan Yang Po, will invest RM150 million or 30 per cent of the cost of the project, while Danga Bay will put in RM185 million (37 per cent).

Pembinaan Sahabatjaya Sdn Bhd will invest RM165 million, or 33 per cent of the project cost.

Danga Bay is a waterfront master developer with landbank over 182ha along the Straits of Johor, while Pembinaan Sahabatjaya, a building and civil engineering company, has successfully undertaken projects worth over RM1.3 billion since 1999.

Tan, also the chief executive officer of Azea Property Investment Pte Ltd, has property investments around the world including in the UK and the US, where over RM50 million worth of its choice residential properties have been snapped up.

The proposed waterfront development in Danga Bay would comprise 700 units of serviced apartments spread over four tower blocks. Selling prices range between RM650 and RM880 per sq ft.

Retail spaces will also be incorporated into the buildings.

The latest joint-venture comes on the heels of several major recent investments in Danga Bay, including a RM40 million hotel by Tune Hotels Sdn Bhd and a RM150 million four-star hotel to be built by a Kuala Lumpur based developer.

By Business Times

UEM Land to buy plots from Inch Kenneth

UEM Land Holdings Bhd is buying two plots of plantation land in Bangi, Selangor, from Inch Kenneth Kajang Rubber Public Ltd Co for RM268.5 million.

It plans to develop a new township on the land measuring 187.5ha, UEM Land said in a filing to Bursa Malaysia Bhd yesterday.

The company said the proposed acquisition forms part of its strategic plans that include securing at least one new township development outside Nusajaya in Johor by 2015.

This is to enable it to diversify its development portfolio and revenue sources in order to achieve its long-term growth strategy.
UEM Land said the earlier acquisition of land in Cyberjaya in December 2008 as well as the takeover offer for property developer Sunrise Bhd are examples of the strategy.

"Collectively, the move to diversify our development portfolio is also aimed at mitigating the group's market risk and geographical concentration risk," it said.

UEM Land said the Bangi land is a freehold land, strategically located within the growth area of Bandar Baru Bangi where several new townships such as Alam Sari and Bandar Seri Putra are currently being developed.

The proposed acquisition will not have any financial impact on the company's current year ending December 31 2010 as the exercise is only expected to be completed in the next financial year.

UEM Land said it planned to develop the land as a new township as soon as possible once the acquisition is completed by March 31 2011.

Spanning over a 10-year development period, it expects an estimated gross development value of RM2.84 billion.

By Business Times

UEM Land to buy land in Bangi for RM268mil

PETALING JAYA: UEM Land Holdings Bhd said it planned to acquire two parcels of freehold agricultural land in Bangi for RM268.5mil from Inch Kenneth Kajang Rubber Public Ltd Co to develop the land into a comprehensive and integrated township.

It told Bursa Malaysia yesterday that its wholly-owned unit UEM Land Bhd wanted to buy the land measuring 463.51 acres at RM13.30 per sq ft.

These indicative terms have been laid out in an offer letter submitted to Inch Kenneth, but both parties have yet to sign a definitive sale and purchase agreement.

The purchase price is based on an indicative market valuation of the land appraised by Messrs Raine and Horne International Zaki + Partners Sdn Bhd on an as is basis with the benefit of two separate unencumbered freehold titles, with vacant possession of RM248.3mil or RM12.30 psf and the development potential and prospects of the land.

UEM Land Holdings said the acquisition was part of the group's strategic plan to have at least one new township development outside Nusajaya by 2015.

This would enable the group to diversify its development portfolio and revenue sources outside Nusajaya for its long term growth strategy.

The group's purchase of land parcels in Cyberjaya in December 2008 (now known as Symphony Hills) as well as the Sunrise offer are examples of this strategy being implemented, it said in its filing.

The Bangi land, which was an oil palm plantation estate, was a freehold land and the approval to convert the land to mixed development status was obtained by IncKen in 2007.

It was located within the growth area of Bandar Baru Bangi where several new townships such as Alam Sari and Bandar Seri Putra are currently being developed and could be accessed via the North South Expressway and the LEKAS Highway.

Under UEM Land Holdings's preliminary development master plan, the estimated gross development value was estimated at RM2.84bil spanning 10 years.

The proposed acquisition is expected to contribute positively to the group's future earnings and to further enhance its profile as a reputable township developer, it said.

The group plans to fund the purchase from the remaining un-utilised proceeds raised from a rights issue completed in April, internally generated fund and/or if need be, bank borrowings.

The balance un-utilised proceeds earmarked for property development expenditure and general working capital for the group stands at RM168mil on Nov 22.

By The Star

Pantai plans RM500mil expansion of hospital network

KUALA LUMPUR: The Pantai Group plans to expand its network of hospitals in Iskandar Malaysia at an estimated cost of RM500mil.

The group, which has already acquired a 15-acre piece of land in Medini, Iskandar, plans to build a healthcare complex of comprising a 300-bed private tertiary hospital, a 150-suite medical office block with centres of excellence that will address healthcare concerns of a growing yet maturing population.

The development of the project, which will bear the name Gleneagles Medini Hospital, will be done in phases and is slated to be one of the premium hospitals under Parkway Health. The agreement was signed between Pantai Hospital Johor Sdn Bhd, a wholly-owned subsidiary of Pantai Hospitals Sdn Bhd, which in turn is a wholly owned subsidiary of Pantai Holdings Berhad and Global Capital & Development Sdn Bhd (GCD), a consortium led by Mubadala Development Company.

We are proud to be working with such an established international healthcare provider to bring top quality healthcare to Medini.

The high standards set by Pantai aligned with GCD's vision to ensure the best in planning, design and management within Medini. We will work closely with Pantai to develop a world class facility that will put Iskandar Malaysia at the forefront of healthcare in South-East Asia, said Keith Martin, chief executive of GCD in a statement yesterday.

This development is a key step in establishing healthcare as a catalyst sector in Iskandar Malaysia and will set new benchmarks for quality healthcare (in Malaysia), said Pantai Holdings chairman Khairil Anuar Abdullah.

capacity for delivering world-class medical services to both Malaysians and foreign patient.

By leveraging on the strategic positioning of Iskandar, the hospital will be well positioned to serve the growing demand for medical travel in the region, and will provide even better medical facilities to the people of Johor.

This facility is targeted to meet the demands for high quality, yet affordable, healthcare in Malaysia, Singapore and wherever such services are not available, said said Pantai Holdings chairman Khairil Anuar Abdullah.

By The Star

MRT project poised to boost Aman Putri profile

PPC GLOMAC Sdn Bhd's newest development in the 6.76ha of Aman Putri prime freehold land in Sungai Buloh, Selangor is located within what renowned property researcher Ho Chin Soon has designated as "first-tier locations".

These are property hot spots that lie within a 15km radius from the centre of gravity in Petaling Jaya New Town and include Kuala Lumpur, Cheras, Puchong, Sungai Buloh, Shah Alam, Subang Jaya and Ampang.



"The first-tier locations will remain the focus and it's difficult to imagine a downside for (such) properties which, in general, have no bubble whatsoever," Ho, master mapmaker and principal of Ho Chin Soon Research Sdn Bhd, had said last year at an investment forum on real estate.

Aman Putri is going to be one of the main beneficiaries of the upcoming mass rapid transit (MRT) system.

With two main lines starting from and connecting to Sungai Buloh, Aman Putri will be wellconnected to the whole of Klang Valley.

But before that, it is already conveniently accessible via the New Klang Valley Expressway, LDP, and the Guthrie Corridor, all of which provide residents easy access to Kuala Lumpur city centre and Petaling Jaya.

It is also surrounded by mature and well-developed neighbouring estates like Valencia, Sierramas, Bandar Baru Sungai Buloh and Bukit Rahman Putra.

Nestled at the edge of tropical palms at the heart of Sungai Buloh, it is said that Aman Putri is "the only freehold landed property" still available in the vicinity.

With gorgeous gardens and the "longest linear parks" in Malaysia, Aman Putri's greens are designed by award-winning landscape architect, Malik Lip and Associates, while the houses are designed by another award-winner, NRY Architects.

Those with enquiries can call PPC Glomac at 03-9173-6877 or email sales@ppc-glomac.com.my.

By Business Times

RM800mil projects in Klang Valley and Ipoh next year

Artist's impression of the RM100mil Taipan@Ipoh Cybercentre project.

GEORGE TOWN: Andaman Property Group, which is based in Kuala Lumpur, will develop six property projects with a gross sales value (GSV) of RM800mil in the Klang Valley and Ipoh next year.

Andaman Property Management Sdn Bhd head of sales and marketing Vincent Tiew said of the six projects, one would be in Ipoh.

In Ipoh, the plan is to develop landed commercial and residential properties while in the Klang Valley, the plan is to develop a mixture of high-rise and landed commercial and residential properties.

The pricing, which is yet to be determined, will be attractive to lure investors, Tiew said.


Potential buyers viewing a model of Andaman’s RM100mil Taipan@Ipoh Cybercentre project during its soft launch recently.

This year, the group launched four projects two in the Klang Valley, one in Johor Baru and one in Ipoh with an estimated GSV of RM350mil.

Ipoh is the group's focus as we have just unveiled the RM100mil Taipan@Ipoh Cybercentre in Bandar Meru Raya, he said.

The project is a 1,600-acre integrated, self-contained township in North Ipoh Growth Corridor, which is being developed by Perak government.

Tiew said the landed commercial and residential project planned for next year in Ipoh would also be in Bandar Meru Raya.

The residential component will be priced affordably to attract first-time home buyers while the commercial components will be marketed to local and outstation investors with competitive pricing, he said.

On the RM100mil Taipan@Ipoh Cybercentre, Tiew said the project saw 50% of its 102 retail lots sold during a three-day preview that started on Nov 26.

The three-storey retail lots, with a built-up area of 4,500 sq ft, are priced from RM688,000 while the four-storey retail lots, with built-up areas between 6,000 sq ft and 11,000 sq ft, are priced from RM1.5mil.

Tiew said there were two key reasons for the brisk sales the features of the retail lots and the location of the project, which is close to the Perak MSC Cybercentre in Bandar Meru Raya.

He said some 30 units had dual-frontage, which meant that they were accessible from front and back.

There are 24 retail lots with 770-sq-ft to 1,200-sq-ft land in front of them that can be used for al fresco dining and other business activities. These units cost RM50,000 extra, he said.

By The Star

Bukit Bintang’s covered walk among stars

PETALING JAYA: The Government's proposal to revive plans for the Bukit Bintang area to be developed along the lines of Singapore's famous shopping haven Orchard Road to boost tourism and increase shopping expenditure, has received positive response from retail associations and real estate consultants.

Under the Economic Transformation Programme (ETP), a 6km-long covered walkway would be built in the Bukit Bintang area. The walkway is part of the RM204bil public-private investment master plan under the ETP's Greater Kuala Lumpur development.

For comparison, Orchard Road is a 2.2km one-way street flanked by distinctive shopping malls on both sides of the road.

Malaysian Retailer-Chains Association (MRCA) secretary general Valerie Choo said in principle, the Orchard Road concept would be good for Bukit Bintang.

MRCA is happy that more emphasis has been placed on reviving Bukit Bintang. Malaysia is now able to sell Bukit Bintang as a tourism product while tourists and locals will be able to walk seamlessly and comfortably from one mall to another, she told StarBiz in an e-mail.

However, she said more needed to be done such as shopping mall enhancement and refurbishment.

This is what Singapore Tourism Board did in 2009, pumping in S$40mil to rejuvenate Orchard Road together with other stakeholders i.e. shopping malls and building owners, she said.

Choo suggested planting more trees to create lush greenery and shade to complete a multi-sensory experience for tourists and locals alike.

But the most vital thing is how the traffic condition can be improved in that area, she said, adding that road closures were now carried out without stakeholders being informed beforehand.


H.C. Chan

Malaysian Association for Shopping and Highrise Complex Management (PPK) president H. C. Chan said Bukit Bintang had the pedigree and history in shopping since its first shopping mall Sungei Wang Plaza opened over three decades ago and this gave the area tremendous potential to be a world-class shopping destination.

Creation of a comprehensive pedestrian network would be a major step towards integrating all the mall and hotel facilities and linking them to public transportation, befitting and expected of a world-class shopping destination, he told StarBiz via e-mail.

Besides customer-friendly physical integration, he said there was a need for a long-term holistic approach of branding and marketing Bukit Bintang as a single shopping haven entity, similar to Orchard Road or Regent Street of London.

PPK urges all mall owners and managers in Bukit Bintang and interested stakeholders like the City Hall to adopt a common platform and work closely together for the common good of the country's tourism and their respective properties, he said.


Tan Hai Hsin

Henry Butcher Retail managing director Tan Hai Hsin said reviving the concept of Orchard Road in Bukit Bintang area was viable and long outstanding. It should have been done many years ago! he told StarBiz in an e-mail reply.

However, Tan said many things still needed to be done to make Bukit Bintang area a world-class shopping district, including:

Covered connection

All major shopping centres should be linked via a series of tunnels and/or bridges that provide cover and protection from the rain and the sun. Berjaya Times Square is now disconnected from Sungei Wang Plaza. There is no covered bridge or tunnel joining both buildings. Also, Plaza Low Yat is disconnected from Sungei Wang Plaza/Bukit Bintang Plaza. Sungei Wang Plaza/Bukit Bintang Plaza is linked to Lot 10 via a bridge. Lot 10 is disjointed from Fahrenheit 88, which is not directly linked to Starhill Gallery or Pavilion.

Pedestrian mall

Jalan Bukit Bintang or Jalan Sultan Ismail should be turned into a pedestrian mall during the weekends. This was attempted many years ago but with great resistance from the hotel, office and retail operators in the area who complained their customers would not be able to access their premises when the road is closed.

Public facilities

Public facilities such as a tourist information centre, public toilets and street furniture are important components of a world-class shopping district. The tourist information booth in front of McDonald's is too small, unfriendly and stocks too few brochures. According to recent media reports, the public toilets (in front of McDonald's and Lot 10) are not well-maintained.

Promotion

A tourist brochure or shopping directory just for the Bukit Bintang shopping district is a must. In Singapore, there are a few publishers on Orchard Road's retail attractions and other facilities.

By The Star

Malaysia-S'pore firm to develop Johor poject

Singaporean and Malaysian investors today announced a partnership to jointly develop a RM500 million new waterfront residential and commercial project in Johor.

To be known as Azea Properties, the high-end development will be coming up on a 1.68 hectare site in Danga Bay – one of the key flagship zones within Iskandar Malaysia.

The Singapore investment, valued at an estimated RM150 million, is by Imperial Marina Pte Ltd – a property investment company helmed by businesswoman Tan Yang Po.

The company is a special purpose vehicle set up by Tan to explore and seize investment opportunities in the booming Iskandar Malaysia real estate sector.

According to a statement today, she will be teaming up with Danga Bay Sdn Bhd (37 per cent) and Pembinaan Sahabatjaya Sdn Bhd (33 per cent) to develop the project through a joint-venture company – Para Impiana Sdn Bhd.

Witnessing the joint venture signing ceremony in Johor Baru today was Menteri Besar Datuk Abdul Ghani Othman, who, with the Prime Minister, is joint-chairman of the Iskandar Regional Development Authority (IRDA).

Danga Bay is a waterfront master developer with a land bank of over 450 acres along the Straits of Johor, while Pembinaan Sahabatjaya, a building and civil engineering company, has successfully undertaken projects worth over RM1.3 billion since 1999.

Tan, who is also chief executive officer of Azea Property Investment Pte Ltd, has property investments around the world.

Her latest foray was into the United Kingdom and the United States, where over RM50 million worth of choice residential properties were snapped up.

This joint-venture comes on the heels of several major recent investments in Danga Bay, including the RM40 million hotel by Tune Hotels Sdn Bhd and a RM150 million 4-star hotel project to be built by a Kuala Lumpur-based developer.

In August this year, property developer Dijaya Corporation Bhd had also entered into a 60:40 joint venture with Danga Bay Sdn Bhd (DBSB) subsidiary, Iskandar Waterfront Sdn Bhd, to develop high end condominium and retail properties on 37 acres of land.

DBSB chief executive officer Datuk Lim Kang Hoo said the latest joint venture with Imperial Marina was a clear signal of the growing confidence of Singapore investors in opportunities across the causeway since the Prime Ministers of Malaysia and Singapore announced a resolution to the long-standing issue of Malaysian railway land in the Republic earlier this year.

Lim also noted a marked increase in investment interests since Khazanah Nasional Berhad and Temasek Holdings Limited announced the setting up of a joint-venture company to explore iconic property developments in Iskandar Malaysia.

Meanwhile, Tan said the proposed waterfront development in Danga Bay would comprise 700 units of serviced apartments spread over several tower blocks.

Retail space would also be incorporated into the buildings.

“All available units in one of the tower blocks has already been booked even before the project launch,” she disclosed, with selling prices ranging from RM650-RM880 per sq ft.

She said the premier seafront project offered exceptional value because of its prime location and proximity to Singapore.

Most of the prospective buyers, she admitted, would be members of the Azea Property Investment Club - a 1,000-strong member club of ordinary individuals who invest in properties around the globe.

The group recently acquired £3 million (about RM15 million) worth of 12 Victorian-styled apartment units in London and another 200 units of landed properties valued at over US$7 million (about RM21.7 million) in Houston, USA – all of which were going for sale below market value.

“We’re also looking into developing commercial properties on an adjoining parcel of land in Danga Bay,” she said.

By Bernama

GuocoLand moves to integrated development

Malaysia’s Hong Leong Group property arm, GuocoLand (China) Ltd (GLC), is set to go bigger into integrated development in China from its early years of single building projects when it first set foot in that country.

GLC managing director Violet Lee said that after GLC’s flagship project, Guoson Centre, won the Best International Mixed-Use Development award last week in London, she was positive that integrated development was the way to go for the company.

Taking the prize at the International Property Awards had given her more confidence to continue with even bigger integrated development projects, she said.

“Over the years, we have transformed from single building projects to mega integrated projects of 100,000 sq metres, 600,000 sq metres,” she said.

Now, the company “will do bigger,” she told Malaysian, Singaporean and Hong Kong journalists in London last weekend after the award ceremony

“The next project in Beijing is going to be 1.4 million sq metres and in Tianjin 1.2 million sq metres, even bigger, double the size I am doing now,” said Lee who initiated the Guoson Centre development.

She said that after winning the award, at least she knew that she was doing the right thing and that she had been recognised for producing quality products.

“So if I continue with this development, this way of doing things I should not be wrong,” she said, adding that GLC’s focus would be on integrated developments in the years to come.
GLC’s developments are in prime locations in Beijing, Shanghai, Nanjing and Tianjin.

Lee said that to-date GLC, which was established in 1994, has a land bank of some 2.5 million sq metres valued at over US$3.5 billion in Beijing, Shanghai, Nanjing and Tianjin.
“We are not intending to move out of these four cities. They will always be within these four cities,” she addded.

The award winner Guoson Centre is a sustainable and fully-integrated development brand in Beijing and Shanghai. Comprising a large-scale cosmopolitan Guoson Mall, five-star British-styled Guoman Hotels, Grade A Office Towers, high-end residences, and expansive Singapore-inspired “Garden City” landscaping, the Guoson Centre combines aspects of ‘Work, Live, Play’ in resembling a city within a city.

Built specifically on prime locations that integrate two of the largest transportation hubs in the world, Guoson Centre is set to provide local, national, and global interconnectivity while satisfying the market’s needs for eco-friendly environments and cosmopolitan lifestyles. The centre is strategically located to provide easy access to some of the largest transportation hubs in the world, connecting urban, national and global centres.

Lee said that the US$2 billion 600,000 sq metres Beijing Guoson Centre is 90 per cent completed while the slightly smaller US$600 million Shanghai centre is on its first phase.

The US$80 million Guoman Hotel Shanghai, which is located within the Shanghai Guoson Centre, is already opened for business while the Guoman Hotel Beijing will open in July next year.

Touching on the hospitality sector, especially the hotel sector, where GuocoLand has ventured into, Lee said that despite the stiff competition there was still a market for hotels if ”you differentiate yourselves from the rest of the people in the industry.”

She noted that two years ago when China hosted the Olympic Games a lot of money were thrown into the hospitality business, with hotels sprouting out everywhere coupled with entertainment complexes, restaurants and malls. Similar facilities also emerged during the recent Shanghai Expo which was held from May 1 to Oct 31.

“But can you sustain this, that is the big question. To me, I think a lot of it will depend on the products that you are giving to the market. That means the hotel itself.”

Another factor would be the services one is providing because “branding comes not only with the products, a lot of it with the software too – the services.”

“When we march into a hotel, no bell boy to take your luggage, you walk to the front desk and they are talking on the phone and do not even want to look at you, I don’t think you would want to go back to the same hotel.

“So is there a market for hotels? The answer is yes, Despite the competition, there is a market. But you have to differentiate yourselves from the rest of the people in the industry," she said. So how is this done apart from having products that are spectacular?

“To me, I always emphasise on the different kinds of services. People say in a hotel you are looking for comfort, you don’t want to feel inhibited. You want to be comfortable. You want to know that people are looking over you. Actually in Guoman (hotels) we emphasise a lot on these services."

For example, she said that the Guoman Hotel Shanghai opened a few months ago is a “true blue five-star standard hotel” where the design was done from scratch.

“From now on all new hotels will be like the hotels in China. Those are our own own hotels we build from scratch. The next one in Beijing, you will see the Guoman signature."

Apart from the hotels in Shanghai and Beijing, one is being planned in Nanjing, and there would also be a hotel in Tianjin, she said, adding that all these hotels had and would have the Guoman signature.

Britain’s Guoman, which runs the hotels, has a 30-year history in hospitality management.

Lee was reported to have said at the launching of the Guoman Hotel Shanghai that with Guoman''s 30-year history in hospitality management and its uniqueness in services, she was confident of the group''s future in the China market.

By Bernama

UEM Land Buys Two Parcels of Land

KUALA LUMPUR:UEM Land Holdings Bhd is buying two parcels of agricultural land from Inch Kenneth Kajang Rubber Plc for RM268.5mil to be developed into a township in Bangi, Selangor.

It told Bursa Malaysia today it was buying the 463.51 acres of land in Semenyih, Selangor for a cash consideration of RM13.30 per sq ft.

It said the indicative market valuation of the land as appraised by Messrs Raine and Horne International Zaki + Partners Sdn Bhd was of RM248.3mil or RM12.30 per sq ft.

The group had stated "the scale of the Bangi land, with a total land area in excess of 450 acres, would provide the opportunity for UEM Land to develop a comprehensive and integrated township".

The group said it had surplus cash of RM351.5mil as at Sept 30, 2010 and the board intends to fund the requirements through internally generated funds and/or bank borrowings.

The Bangi land is adjacent to the Alam Sari township and Universiti Kebangsaan Malaysia, and is within the vicinity of Bandar Baru Bangi.

Whilst the Bangi land is currently classified for agricultural land use and is an oil palm plantation estate, approval for conversion to mixed development status was obtained by IncKen in 2007.

It added that the proposed acquisition was part of its strategic plan where one of the objectives was to secure at least one new township development outside Nusajaya by 2015.

This was to enable the group to diversify its development portfolio and revenue sources outside Nusajaya in order to achieve its long term growth strategy.

The scale of the Bangi Land, with a total land area in excess of 450 acres, would provide the opportunity for UEM Land to develop a comprehensive and integrated township, it said.

By The Star

Board expects buoyant building sector as 10MP projects roll out

The Construction Industry Development Board (CIDB) expects the construction sector to be buoyant next year as projects under the 10th Malaysia Plan (10MP) start to roll out from January.

But the government will be cautious in awarding contracts to mitigate the risk of being exposed to a second wave of global economic crises, said CIDB chief executive officer Datuk Hamzah Hasan.

Hamzah said the European debt crises and the slow US economic recovery was worrying and many countries are taking steps to reduce their expenditure in order to improve their budget deficit.

"Malaysia is taking similar steps in view of the expected crises. The impact will be felt in 2011 as what was experienced in 2009," he said.

He, however, said the impact will not be as great as last year due to continuation of projects from the Ninth Malaysia Plan (9MP), new jobs under the 10MP and more public-private partnership (PPP) projects coming up.

Under the 10MP, an amount of RM230 billion has been allocated for development, whereby 60 per cent, or RM138 billion, is for infrastructure.

Hamzah is bullish the industry will replicate this year's expected growth of 3.7 per cent in 2011. To achieve the target, it would need RM80.3 billion new projects next year, up from RM77.4 billion in this year.

He said projects like Matrade Centre, Warisan Merdeka, mass rapid transit and the Malaysian Rubber Board's land development in Sungai Buloh, worth RM70 billion, will contribute to growth next year.

This year, the government has announced projects to the tune of RM72 billion such as the LRT extension, the New LCCT terminal, power plants and luxury housing projects in Iskandar Malaysia.

"These are high-impact projects which will improve the business environment and private investment," he said.

In 2009, when the global economy hit the height of recession, Malaysia's construction sector was able to grow by 5.8 per cent because of completed jobs worth RM309 billion within four years of the 9MP.

"We expect by 2015, the sector will contribute 5 per cent to the country's gross domestic product, from the current 3 per cent," he said.

By Business Times

Pantai to build hospital in Iskandar

Pantai Holdings Bhd intends to expand its network of hospitals to Iskandar Malaysia with the purchase of six hectares of land in the mixed development area of Medini, Iskandar.

An agreement was signed between Global Capital & Development Sdn Bhd (GCD), a consortium led by Mubadala Development Company, and its wholly-owned subsidiary, Pantai Hospital Johor Sdn Bhd.

"This development is a key step in establishing healthcare as a catalyst sector in Iskandar Malaysia and will set new benchmarks for quality healthcare to reinforce Malaysia's capacity for delivering world-class medical services to both Malaysians and foreign partners," Pantai Holdings Chairman Khairil Anuar Abdullah said in a statement today.

The planned healthcare complex will be built in phases and will eventually comprise a 300 bedded private tertiary hospital, a 150 suite medical office block with centres of excellence to address the healthcare needs of the population.

By Bernama

Johor developers face future challenges

JOHOR BARU: Demand for residential properties is still good in Johor but developers will face challenges in the coming years due to labour shortage and a hike in building material prices.


Simon Heng .... ‘The take-up rate for new houses in Johor is still good despite the increase in prices.’

Real Estate and Housing Developers Association (Rehda) Johor branch chairman Simon Heng said developers did not have much choice but to pass the additional cost to house buyers.

He said building materials costs had increased by 10% to 15% in the past two months, translating into higher selling prices for new houses, especially in Johor Baru.

The take-up rate for new houses in Johor is still good despite the increase in prices and hopefully the trend continues next year,'' Heng told StarBiz on Wednesday.

He said banks were still offering attractive home loans, including full-loan facility for first-time buyers with a monthly household income of less than RM3,000 as announced recently in Budget 2011.

He said developers should look at coming out with innovative packages, including gated-and-guarded precincts and high-speed broadband facilities, to attract buyers.

Heng said the construction industry was also facing labour shortage and had to depend on foreigners as locals were not interested to take up the job.

He said many Indonesians that had been working in the construction sector in Malaysia for more than five years had left home as the construction sector in the republic was booming.

He said despite having workers from Bangladesh, Pakistan and Vietnam, contractors still preferred Indonesians as they were more hardworking and easy to communicate with.

By The Star

RM27b investment spent in Iskandar Malaysia

A total of RM26.89 billion or 42 per cent of the committed investments of RM64.38 billion in Iskandar Malaysia have been spent on projects on the ground as at end of September.

A statement from the Iskandar Regional Development Authority (IRDA) said the 9th meeting of the Members of Authority (MoA) of IRDA, which was chaired by Prime Minister Datuk Seri Najib Tun Razak on Monday, was pleased that several key projects were on track and ready to commence operations in 2011/2012.

These include the Netherlands Maritime Institute of Technology (recruitment to start in 2011); Newcastle Medical University Malaysia (in October 2011); Johor Premium Outlets (in November 2011); LEGOLAND theme park in Medini North (2012); Lifestyle Retail Mall@Medini (2012); and Marlborough College Malaysia (2012).

Najib is the IRDA co-chairman with Johor Menteri Besar Datuk Abdul Ghani Othman.

The statement said Iskandar Malaysia's positive growth continued to be on track for 2010 with greater awareness locally and internationally.

This was achieved despite the weak worldwide economic growth last year but following a strong rebound of regional economies in 2010.

It said the meeting also discussed strategies to woo more local and foreign investments to Iskandar Malaysia.

IRDA members were also informed that Iskandar Malaysia has been in the forefront of implementing the government's Economic Transformation Programme (ETP), aligned with the New Economic Model (NEM).

Seven of the 12 National Key Economic Areas (NKEAs) under the ETP are being promoted in the region, it said.

The statement said several Entry Point Projects (EPPs) under the NKEAs not only offered business opportunities to local and foreign investors but also help develop Iskandar Malaysia to be "a strong and sustainable metropolis of internatioal standing".

The MoA noted that Iskandar Malaysia continues to attract interest from investors given its strategic location, strong brand, competitive cost of doing business, transparency and good investment environment.

The economic corridor attracted 58 per cent domestic and 42 per cent foreign investments, with positive outlook from Singaporeans, both in the manufacturing and services sectors.

IRDA said it is also targeting at more impactful promotions and marketing activities next year.

The MoA was also given updates on the progress of the Johor Baharu Sentral Business District Transfrmation Plan and the Iskandar Malaysia Human Capital Blueprint initiatives, among other matters.

By Bernama

Glomac at 3-year high on profit surge

Glomac Bhd, a Malaysian property developer, rose to its highest level in more than three years after profit in the second quarter ended Oct. 31 surged 71 per cent from a year earlier.

The stock gained 1.8 per cent to RM1.73 at 9:08 a.m. in Kuala Lumpur trading, set for its highest close since July 31, 2007.

By Bloomberg

Cahya Mata unit in RM380mil JV to build hotel, apartments

PETALING JAYA: Cahya Mata Sarawak Bhd, through 51%-owned subsidiary CMS Land Sdn Bhd, has signed a joint-venture agreement to build, own and manage a four-star hotel and service apartments at the Kuching Isthmus in Sarawak.

It told Bursa Malaysia yesterday that it had signed the agreement with Premier Cottage Sdn Bhd (PCSB), Boulevard Jaya Corp Sdn Bhd (BJSB), Hikmat Majusama Sdn Bhd (HMSB) and Isthmus Developments Sdn Bhd (IDSB).

The building, comprising 381 hotel rooms and 96 service apartments, will cost about RM380mil, including outfitting, furniture, fittings and equipment, but excluding financing costs and contingencies.

IDSB, which will undertake the development, will finance it via a combination of share issuance, borrowings from banks or financial institutions, as well as advances from the joint-venture partners, except CMS Land, totalling up to RM50mil.

CMS Land will inject two parcels of vacant land in Kuching, totalling 4.25ha with a lease period of 99 years expiring in 2109 to IDSB for a total consideration of RM10mil to be satisfied via the issuance of 10 million new shares in IDSB, which will undertake the hotel development, at their par value.

Based on the audited financial statements as at Dec 31, 2009, the net book value of the land was approximately RM5.106mil. The land has not been income generating and thus no profit is attributable to the land, it said.

CMS Land will eventually own 10.3% in IDSB, while PCSB, BJSB and HSMB will hold 50.5%, 19.6% and 19.6% respectively.

CMS Land will subscribe for 300,000 new RM1 shares in IDSB, while PCSB, BJSB and HSMB will subscribe for 5.05 million new shares, 1.96 million new shares and 1.96 million shares respectively.

Building works for the hotel is expected to begin in the first quarter of 2011 and completed by December 2013.

CMS Land is the land owner and property developer for the Kuching Isthmus development project, which is intended to become Kuching's new central business district.

It is a proposed mixed commercial and residential development project that includes convention and exhibition centre, transport hub, tertiary educational institutions, marina and other housing/commercial developments.

By The Star

Cahya Mata unit in apartments, hotel deal

CAHYA Mata Sarawak Bhd's 51 per cent unit has formed a joint venture with four parties to help it build, own and manage serviced apartments and a four-star hotel in Kuching Isthmus in Sarawak.

CMS Land Sdn Bhd will have a 10.3 per cent stake in the joint venture company.

The other parties are Premier Cottage Sdn Bhd, Boulevard Jaya Corp Sdn Bhd, Hikmat Majusama Sdn Bhd and Isthmus Development Sdn Bhd.

By Business Times

GuocoLand China wins property award

LONDON: Malaysia’s Hong Leong Group property arm, GuocoLand (China) Ltd (GLC), was voted the Best International Mixed-Use Development at the International Property Awards here over the weekend for its US$2 billion flagship project Guoson Centre.

The achievement sets an important milestone for China as it is the first time that one of its mixed-use projects has been honoured for "Best International" in 16 years since the awards’ inception, GLC said.

GLC group managing director Violet Lee said that winning the award showed that “China can actually construct quality projects that can top the world.”

“Winning the world’s best means we have reached a certain point namely world recognition of the efforts that we have put in,” she told reporters from Malaysia and Hong Kong here Sunday.

Lee said that one of the factors why GLC won the award against other nominees, which included those from the Midle East like Bahrain Bay with projects worth more than US$6 billion, was its “community angle.”

By Business Times

RM700m boost for Iskandar Malaysia

The government has agreed to allocate an additional RM700 million for rolling plans for Iskandar Malaysia over the next two years.

Johor Menteri Besar Datuk Abdul Ghani Othman said the amount is an addition to the RM339 million set aside to the southern Johor growth region during the recent tabling of Budget 2011.



"Yesterday, Prime Minister Datuk Najib Razak agreed to add funds for rolling plans with another RM700 million for Iskandar Malaysia programmes," Ghani said in his speech at the launch of the Kota Iskandar Tourism Programme and Sinar Jauhar gallery in Nusajaya yesterday.

He did not elaborate on the rolling plans. Sources said the funds may be for various infrastruture projects and new investments which have not been announced by the government.

Najib is co-chairman of the Iskandar Regional Development Authority.

On a related matter, Ghani said , Nusajaya is set attract more tourists with the new guided tours for the Sultan Ismail Building which houses the state assembly in Kota Iskandar.

"In 2009, the building attracted 8,000 tourists, and between January 2010 and now, the tourist arrivals have risen by 30 per cent.

By Business Times

New builder for major project - High-end property scheme in Batu Ferringhi to be rebranded

GEORGE TOWN: Mah Sing Group Bhd will apply for approval to take over the planning permission for the Tropika Ferringhi project given to the previous land owner.

Mah Sing said in a statement that on 22 November, the group had acquired a piece of freehold land in Batu Ferringhi which had been approved by the authorities for residential development as applied by the vendor from an earlier submission.

“The premium has been paid and a development order procured for landed development (Phase Two) for the project named Tropika Ferringhi.

Subject to authorities’ approval, Mah Sing intends to rebrand the project ‘Ferringhi Residence@Penang’ upon completion of the sales and purchase agreement.

”Mah Sing will be applying to the MPPP for approval to take over the planning permission upon completion of the land purchase,” the statement said.

Mah Sing was responding to an MPPP statement which said that the group had not submitted any application for planning or development approval for the Ferringhi Residence@Penang project.

Mah Sing had said the group would unveil its RM800mil residential project on a 61-acre site in Batu Ferringhi in the first quarter of 2011.

Group managing director and chief exe-cutive Tan Sri Leong Hoy Kum said the pro- ject would be a gated and guarded scheme, comprising property such as semi-detached and bungalow homes as well as condominiums.

By The Star

UEM Land to sell asset for RM6.5m

UEM Land Holdings Bhd is selling 8.09ha in Johor to Medini Iskandar Malaysia Sdn Bhd for RM6.53 million.

Medini plans to build water supply reservoir, suction tank, pump house and retention pond on the land.

The sale will provide a gross profit of RM2.86 million for the year ending December 31 2010, UEM Land said in a filing to Bursa Malaysia yesterday.

By Business Times

Mahajaya to buy land in Selangor

MAHAJAYA Bhd is buying 3.79ha of land in Cheras, Selangor, for RM15.52 million.

The land will be used to extend the development of its Bandar Damai Perdana, the company said in a statement yesterday.

By Business Times