90pc of Naza-TTDI's 'Viola' snapped up on launch day itself

NAZA-TTDI said some 90 per cent of its 'Viola' residential project in Alam Impian, Shah Alam, were booked on the launch day itself.

The latest offering follows the succesful launch of TTDI Alam Impian's "Spira", the township's first phase of residential development which completely sold out in only 3 days.

Naza-TTDI said the "Viola" will raise further the benchmark for modern living.

The latest project marks the developer's second residential development phase for its Alam Impian township that promises to offer home owners a unique urban living experience that's ideal for the modern family.

Setting itself apart from conventional townships, this new precinct will bear four different elegant contemporary home layouts encircling pockets of parks to provide residents with wholesome and vibrant community living.

The Viola offers several designs and layout plans with spacious built up areas ranging from 1,952 sq ft to 3,116 sq ft.

It is located strategically in Shah Alam and is accessible via several highways such as, NKVE, KESAS, ELITE as well as the newly completed LKSA highway.

"We are certain that with Viola, we are one step closer to reaching our aim of making TTDI Alam Impian the township of choice for growing modern families in and around Shah Alam," group managing director SM Faliq SM Nasimuddin said in a statement yesterday.

By Business Times

MRCB, IJM Land extend validity of MoU to merge

KUALA LUMPUR: Malaysian Resources Corp Bhd (MRCB) and IJM Land Bhd have extended the validity of their memorandum of understanding to merge and create the country's second-largest property company to Dec 29 from Dec 14 previously.

The companies said in separate statements yesterday that both parties were still in the midst of finalising the terms and conditions of the definitive merger agreement for the proposed merger.

Last month, MRCB announced it would team up with IJM Land under a newly incorporated company (Newco). The proposal would involve a share swap of MRCB and IJM Land with new shares in the Newco.

The Newco is expected to take over the listing status of both companies in the second half of next year with an implied market capitalisation of RM7bil and net asset of over RM3bil, which will make it the second-largest property developer on the exchange.

By The Star

Funds for the building allocated over the years

The allocation to rebuild the Petaling Jaya mayor’s official residence was first included in the 2008 Budget, with RM871,900 budgeted but was not used.

A total of RM900,000 was thus side aside for the purpose in the following year’s budget and that raised some eyebrows. An additional RM600,000 was allocated in Budget 2010 due to an increase in the cost of building materials.

Some questioned if the expense was necessary but the full board approved it eventually as the official residence had been torn down due to being termiteinfested. The site was left idle for years and became an eyesore.

All Petaling Jaya Residents Association (Apac) chairman Johan Tung Abdullah said the money spent on the mayor’s official residence was “very generous” but declined to elaborate.

“Now that you have a huge mansion there, it is important for the Petaling Jaya City Council to maintain the asset properly and ensure there is no recurrence of termite infestation. We do not want to see another RM1.5mil allocated for the same purpose again a few years down the road,” he said.

Former Apac chairman Liew Wei Beng, who was in office when the issue was first raised, said the allocation was fair but that the council could have been more transparent in how they handled the money.

“It is fair that the mayor be provided with a proper residence to show his status and the amount is not exorbitant.

“Still, the council was not transparent throughout the process. The allocations budgeted for different years were rather confusing. Also, questions arise over whether there was an open tender? Was it done properly? We did not know,” he said.

MBPJ councillor Richard Yeoh, who is the former executive director of Transparency International, said he did not see a problem in the construction of the new residence.

“The mayor’s residence had been there for about five decades but it fell into a state of disrepair due to termites. Currently, spending RM1.5mil for a house for the mayor is reasonable as there should be an official residence for the mayor to host visitors or to have official functions.

He added that the mayor’s residence was a public asset and proposed that the community and councillors be allowed to use it for public events.

By The Star

Bina Goodyear eyes 2 more contracts

Property and construction firm, Bina Goodyear Bhd, aims to secure two more new contracts and seek property development investment opportunities.

Its managing director, Wong Chick Wai, said currently, the group's outstanding construction contracts stood at over RM400 million.

"We are hoping to secure the projects from both government and private sectors," he told reporters after the company's annual general meeting here today.

In the past six months, he said, Bina Goodyear has secured two contracts valued at over RM160 million. Wong said the implementation of Economic Transformation Programme would boost the construction sector.

"The prospect of the sector is good and the company will continue to actively tender for local construction projects," he said.

For the financial year ended June 30, 2010, Bina Goodyear's pre-tax loss was reduced to RM8.95 million from RM24.03 million in the same period of 2009.

Its revenue, however, rose by 1.5 per cent to RM338.684 million from RM333.764 million previously.

By Bernama

Naza TTDI takes modern living to greater heights at TTDI Alam Impian

Latest township by NAZA TTDI - VIOLA.

Following the successful launch of TTDI Alam Impian’s SPIRA, the township’s first phase of residential development which completely sold out in only three days, NAZA TTDI is now geared to further raise the benchmark of modern living with the unveiling of VIOLA.

The launch of VIOLA marks the developer’s second residential development phase for its Alam Impian township that promises to offer home owners a unique urban living experience that’s ideal for the modern family. Setting itself apart from conventional townships, this new precinct will bear four different elegant contemporary home layouts encircling pockets of parks to provide residents with wholesome and vibrant community living.

In conjunction with the unveiling of TTDI Alam Impian’s Viola held recently, close to 200 property enthusiasts attended the event where almost 95% of NAZA TTDI’s VIOLA homes have been booked by eager home buyers, all in just one day.

Offering several designs and layout plans, the VIOLA homes have spacious built up areas ranging from 1,952sq ft to 3,116sq ft. Located strategically in Shah Alam, these VIOLA homes are also easily accessible via several highways such as, NKVE, KESAS, ELITE as well as the newly completed LKSA highway.

According to group managing director SM Faliq SM Nasimuddin, “Tremendous amount of thought and research have gone into the planning and design of these homes to complement the whole concept of TTDI Alam Impian. Our aim as a passionate and innovative developer is to create a sanctuary for home owners that offers the convenience of contemporary living with the warmth and familiarity of a traditional neighbourhood. We are certain that with VIOLA, we are one step closer to reaching our aim of making TTDI Alam Impian the township of choice for growing modern families in and around Shah Alam.”

Faliq further adds that he is encouraged by the overwhelming response received during the launch and several NAZA TTDI launches that came before it. “It is a testament to the strength of our brand and of the products we put forward. We are always looking for ways and means to better ourselves.

This is reflected in what we offer to our purchasers. Customer satisfaction is what we stress upon in this organisation. In any development we embark upon, we also take into consideration what can be benefitted by the community there and the surrounding areas. I promise that NAZA TTDI is a developer that delivers quality and value, each and every time. What I can say is look out for our upcoming launches!”

By The Star

Penang property a goldmine

Property in Penang will continue to remain a favourite choice among investors as it is expected to show returns that are above the national average.

Henry Butcher Malaysia (Penang) Sdn Bhd director Dr Jason Teoh said property investment was generally perceived to have a longer term horizon as it was not so volatile compared to stocks.

He said investing in property had proven to be a good hedge against inflation because the returns ge-nerated were higher than the Con-sumer Price Index.

“In fact, seasoned real estate in-vestors from Hong Kong and Singa-pore have predicted that real value will increase over the next few years.

“Among the reasons is Malaysia’s recent positioning in the top 10 list of the world’s most competitive countries,” he said in a statement in conjunction with the official launch of the lifestyle suites, 118@Island Plaza, at level seven of Island Plaza, Penang, this weekend.

The public is invited to the sales gallery to view the show unit between 10am and 6pm on Satur-day and Sunday.

Response to the initial sales preview had been overwhelming with 50% of the 106 suites sold prior to the official launch.

Henry Butcher Malaysia (Penang) is the sole and exclusive marketing consultant for the contemporary suites owned by Omega Moments Sdn Bhd.

Teoh said foreign real estate investors had complimented Pe-nang’s progress in offering some of the most attractive product designs, but at prices which were only a fraction of those in their home countries.

“Penang’s real estate market can now be benchmarked against some of the best schemes in Kuala Lumpur and Singapore,” he said.

He added that Penang, being voted among the eighth most liveable cities in Asia, on par with KL and Bangkok by ECA International, had created further excitement, especially among foreigners seeking a second home.

118@Island Plaza is the first alteration and amendment development of its kind, which when completed, will offer much demanded housing and office units for professionals and expatriates.

Each unit, ranging from 500 sq ft to 1,160 sq ft, is thoughtfully conceptualised and designed as part of Island Plaza’s remodelling programme to bring in greater vi- brancy.

For enquiries, contact Henry Butcher Malaysia (Penang) Sdn Bhd at 04-2298999.

By The Star

Hua Yang launches Oasis 9, Shah Alam

MAIN-MARKET listed property developer Hua Yang Bhd has launched a two-storey commercial complex called Oasis 9, Shah Alam which is currently 100 per cent tenated.

"We initiated the project in 2006 under a build, operate and transfer agreement. Work began in 2008 and was completed by 2010," said Chief Executive Officer Ho Wen Yan in a statement Wednesday.

Oasis 9, which provides an avenue for small-and-medium sized businesses, would be managed by Hua Yang for 30 years under a partnership entered into with the Shah Alam City Council.

"What's impressive about Oasis 9,Shah Alam is that we have the biggest Arab restaurant in Malaysia, right here at our doorstep," he added.

By Bernama

RM688m mixed project in Iskandar on drawing board

WCT Bhd, a construction and property outfit, will undertake a mixed commercial project in Johor next year featuring retail, offices and apartment blocks.

The RM688 million project, located in Medini, in Iskandar Malaysia, will be WCT's second development in Johor after 1Medini Residences.

1Medini comprising 1,332 condominium units worth RM600 million, will be launched by June next year, said WCT general manager for sales and marketing Stewart Tew.

Tew said WCT is bullish on Johor market, hence it will buy more land there when the opportunity arises.
"We are venturing heavily into Johor. There has been a lot of catalyst development in Medini like Legoland Malaysia and Newcastle University Medical Malaysia.

"Iskandar Malaysia is close to Singapore, a high networth business district. So we see potential to grow in the south," he said yesterday in Kuala Lumpur after a signing ceremony between WCT's Platinum Meadow Sdn Bhd and Global Capital & Development (GCD).

GCD, a Mubadala-led consortium, is the concession holder tasked with the development of Medini, comprising lifestyle and leisure cluster, Medini business district and a cultural centre.

WCT is buying 4.1ha from GCD for its commercial project.

GCD chief executive Keith Martin said it expects a new wave of development in Medini next year.

Martin said GCD is talking to potential investors in various sectors in Asia Pacific to invest in Medini.

GCD is conducting a feasibility study to develop Plaza Medini, a two million sq ft commercial mixed used project, featuring offices, retail, serviced apartments and hospitality venues. Key plans include setting up a US$150 million (RM469.50 million) film and television production facility.

Medini is expected to generate over US$20 billion (RM69.6 billion) in revenue over a 15 to 20 year period.

GCD is represented by investors from Malaysia like Iskandar Development Bhd and Mubadala, the Abu Dhabi government investment company.

By Business Times

LBI Capital inks pact to buy land

LBI Capital Bhd's wholly-owned unit, LBR Industries Sdn Bhd, has signed a conditional sale and purchase agreement with Yap Geok Kee Sdn Bhd to acquire four pieces of land in Penang for RM15 million.

In a filing to Bursa Malaysia today, LBI Capital said the acquisition would increase the development land of the group and boost earning.

"The company plans to develop the land into lifestyle retails lots with hotel suites since it's located in a popular tourist belt," it said.

By Bernama

YTL to sell and lease back properties

YTL Corp Bhd is selling four properties to Starhill Real Estate Investment Trust (REIT) for RM472 million and leasing them back.

The properties are Cameron Highlands Resort, Hilton Niseko in Japan, Vistana Penang and Vistana Kuala Lumpur, the group said yesterday.

Apart from RM100 million cash payment, Starhill Global Real Estate Investment Trust will also issue convertible preference units at S$1 (S$1 = RM2.40) per unit.

Upon conversion of convertible preference units into Starhill Global REIT, YTL Corp's stake in the Singapore exchange-listed REIT will increase.

By Business Times

Asia to lead world office building: report

Asia will lead the world in developing new office space as firms shift focus away from lacklustre markets in Europe and North America, a report said Tuesday.

Asia will be the only major global region to boast "significant" office completions in 2010 and 2011, before slowing somewhat in 2012, said the new report by international property firm CB Richard Ellis.

The region -- including Hong Kong, mainland China and Singapore -- will account for about two-thirds of world office completions by 2012, far outpacing development in Western Europe, North America and the Pacific, including Australia and Japan, said the report.

"Asian office development has by now fully resumed after slowing down briefly in the wake of the global economic downturn," said the report, "Global Office Development Cycle: Where are we now?"

"Other regions, in contrast, are experiencing either slightly below normal completions, such as the Pacific, or relatively scant completions, such as Western Europe and North America."

Asia will account for about 65 percent of the 293.2 million square feet (26.4 million square metres) completed in leading global office markets between 2010 and 2012, the report said.

Europe will account for about 23.6 percent, or 69.1 million square feet, of the total followed by North America at 7.9 percent (23.1 million square feet) and the Pacific with about 3.6 percent (10.5 million square feet).

On an annualised basis, office completions in North America -- pounded by the global financial crisis -- would drop by 70 percent between 2010 and 2012 compared with the yearly average between 2001 and 2009, the report said.

By contrast, Asia's average yearly office completions would soar by 50 percent compared with the previous nine years.

"Office demand in North America will remain sluggish in the near term as companies continue to be cautiously optimistic and try to preserve their cash reserves," the report said.

The big shift reflects firms looking to Asia amid a sputtering economic recovering in the West, and moving employees to boost their regional presence, the report said.

"This shift in corporate activity is reflected by the way in which the regional focus of office development has changed, especially since the global economy has begun to emerge from the financial downturn."

By AFP

Bubble fears as Taipei property prices hit record

When 35-year-old Yu Chang-che made a record-breaking offer on an apartment on the fifth floor of The Palace, a gated community in downtown Taipei, he set off a wave of complaints across Taiwan.Yu, the son of a well-known property investor, agreed to pay 280 million Taiwan dollars (nine million US) for the 450-square-metre (4,800-square-foot) unit, a historic high that raised eyebrows around the island.

"Many people wouldn't be able to buy so much as the bathroom in such a luxury home even if they spent their entire life savings," said Lai Shyh-bao, a legislator of the ruling Kuomintang party.The deal ended up on the front pages of major newspapers and became a hot topic on the 24-hour news channels as fears mounted it would set off new cycles of speculation.

In the end, Yu backed out of the transaction.In the wake of the global financial crisis, Taiwan's property market has soared, sparking fears that prices will spiral out of the reach of the average buyer -- and generate a damaging property bubble.At the end of October, the average price of property in Taipei city was 4,614 US dollars per square metre, according to data from property agency Taiwan Realty.This is up 15 percent from a year earlier, and makes Taipei the fifth-most expensive Asian city, behind Hong Kong, Tokyo, Singapore and Seoul, and ahead of Shanghai and Beijing, according to the agency.

"No one expected an upturn such as this," said Chen Yu-cheng, a broker at National Realty, another Taipei-based property agency.Analysts say the rally has been spurred by low interest rates amid ample liquidity worldwide aimed at rescuing struggling economies.Adding fuel to the fire is a government decision to slash inheritance tax, prompting an inflow of idle money that had stayed abroad, said Chang Sheng-hung of Mega International Investment Services.Finally, the property market has been helped by a significant reduction in tension with Beijing after the China-friendly politician Ma Ying-jeou was elected president in 2008.

Tallies released by the government in August indicate that the house price-to-income ratio -- the ratio of the median market home price to the median annual household income -- hit 11.5, up from 9.9 at the end of 2008.In other words, even if an average Taiwan family spends nothing on food or clothes or anything else, it will still take more than a decade for them to be able to buy a home.

Skyrocketing housing prices have emerged as a key public complaint, and the central bank has raised interest rates twice while tightening credit for housing loans this year, but so far to little effect."The bubbles have been there for a while and are getting bigger and bigger," said Chang Chin-er, a specialist in land economics at National Chengchi University in Taipei.Unlike the academics, land developers say the present prices remain at reasonable levels, arguing that the risk of a sharp correction is low -- at least within the next year.

"If you take the price-to-income ratio into consideration, Taipei's realty prices still fall within reasonable levels," said Frank Chung, the chairman of Huaku Development Co.Chung remains bullish, citing the continued US attempts at quantitative easing measures which have been further driving up liquidity heading for emerging markets, including Taiwan.

Still, the private think-tank Taiwan Institute of Economic Research strikes a cautious note, saying short-term speculative trading, seen as one indicator of bubbles, has made up more than 20 percent of total transactions."The risk of bubbles bursting may be even more pronounced next year if the government takes no fresh measures to rein in prices," said Liu Pei-chen, a researcher at the think tank.

Also setting off alarm bells at the think tank is the fact that the total amount of the island's outstanding housing loans now account for more than 40 percent the island's gross domestic product, she said.Chengchi University's Chang estimated Taipei's property prices are already 43 percent higher than they should be, given average incomes and the current demand for rented homes."The bigger the bubbles, the greater damage they may wreak to the economy once they burst," he said.

By AFP

Columbia Asia opens Shah Alam hospital

Malaysia-based international healthcare provider, Columbia Asia Group today officially opened its new Columbia Asia Hospital-Bukit Rimau in Shah Alam, developed at a cost of RM67 million.

"There is an increasing demand for affordable healthcare services and we are excited to bring this new hospital to residents in Bukit Rimau and the surrounding communities," said Chief Executive Officer, Southeast Asia, Columbia Asia Group, Kelvin Tan.

"This facility will also augment our other seven hospitals in Malaysia in line with our goal of becoming the preferred choice for employers, insurance companies and middle-income families across Asia," he said in a statement here today.

The hospital in Bukit Rimau is the eighth Columbia Asia community hospital in Malaysia after one each in Miri and Bintulu in Sarawak, Seremban, Taiping, Shah Alam, Puchong and Nusajaya (Johor).

It plans to open three more hospitals namely in Cheras Selatan and Setapak in Kuala Lumpur and in Seremban. These hospitals are expected to be operational in phases from early next year to 2012.

Tan said there has been an exponential increase in the number of people who are medically insured by employers and insurance companies.

In Malaysia, over 70 per cent of Columbia Asia’s revenues are received from third party payers.

By Bernama

No woes from 5/95 home loans foreseen

PETALING JAYA: As the timeframe for repayment of homes purchased under the 5/95 home loan scheme draws near, all eyes will be on the ability of buyers to repay their loans amid forecasts of a slowing economy next year.

A banking industry source estimated that 20% to 30% had started repayment and the bulk of repayment would come onstream next year. However, he said, most of these buyers were from the high-income segment and had traditionally been able to service multiple loans.

He said the scheme, currently for first and second homes, was for selected locations and was undertaken by a few top developers.

The scheme, he said, was extended during the recession two years ago and was likely to be stopped end of this month, as the contract between the banks and developers would be over and the property market picked up.


Datuk Michael Yam ... ‘We don’t foresee banks running into high levels of non-performing loans.’

The 5/95 home loan scheme allows buyers to make only a 5% downpayment and sign the sale and purchase agreement.

Loans were secured by selected banks and the service of the loan only commence when the property is ready to be handed over to the purchaser.

The first property developer to introduce and implement the innovative 5/95 scheme was SP Setia in January 2009 in a cautious property market outlook.

The special home loan package was a great success and boosted the company's second quarter revenue ended April 30.

Soon after, other established property developers such as Glomac Bhd, Mah Sing Group Bhd, Malton Bhd and Sunrise Bhd followed suit with their 5/95 home loan scheme, with minor variances and with varying degrees of success.

Since the 5/95 home loan scheme was implemented, the economic environment has changed. So how are the homebuyers of this scheme faring?

Real Estate and Housing Developers Association (Rehda) president Datuk Michael Yam said the special loan scheme was only adopted by selected and established property developers.

The scheme was introduced mainly to affluent homebuyers, so Rehda does not foresee any repayment problems from these homebuyers presently or in the future, Yam told StarBiz.

Moreover, he said, sales made from this special loan scheme would likely represent only about 5% of the total sales made by these developers from various property projects in 2009.

While growth in the developed world was expected to slow down next year, the local property market's outlook was bullish, said Yam.

Local banks are flushed with funds and we don't foresee banks running into high levels of non-performing loans or default rate by homebuyers next year, he added.

On the 70% loan financing cap for those wanting to buy a third residential property, Yam said it was mainly Bank Negara's way of saying we are monitoring the situation.

A banking industry source said the special loan package in 2009 was structured in collaboration with several foreign and local banks as well as selected property developers.

Interestingly, we find that homebuyers who had purchased several residential properties then under the 5/95 home loan scheme were less likely to be the ones who defaulted on their payments, he said, adding that overall the late payments, or default rate, by these homebuyers were currently insignificant.

OSK Research head Chris Eng said that going forward, the local property market was seen to remain bullish despite an expected global economic contraction.

Eng concurred with Yam that local banks did not have liquidity problems.

We expect the local property market to remain resilient at least for 2011, Eng said.

On the default rates of homebuyers of the 5/95 home loan scheme, he said: It's a bit too early to tell as some of these homebuyers are likely to have either just started making repayments on their home loans or are about to.

A spokesperson from SP Setia said that while the 5/95 home loan scheme introduced by the property developer was a great success, it was only for three months (from Jan 19 to April 19, 2009).

We made good sales (from the promotion of the special home loan package) which helped to boost our company's second-quarter revenue in 2009, she said.

On the default rates of homebuyers under the special package, she said that so far it (default rate) was insignificant for homebuyers that had bought SP Setia homes completed in 2009.

For homebuyers under the special scheme introduced in 2009, who are going to get the keys to their homes next year, we do not expect a high default rate on their home loan repayments, she said.

By The Star

Guocoland project in China wins international property award

LONDON: Guoson Centre, a flagship project by Malaysia's Hong Leong Group property arm, Guocoland China Ltd, won Best International Mixed-Use Development at the International Property Awards here recently.

This award signifies the transformation of the company, from a single project company to one that does mega-size integrated development.

It means world recognition of the efforts that we have put in, and world recognition that China can actually construct quality projects that can top the world. For many years, China has not won any international recognition for its real estate, said Guocoland China managing director Violet Lee, a Singaporean who has worked in China for the past 21 years.


Violet Lee ... ‘We look at the project from the community angle.’

Guoson Centre is a sustainable and fully-integrated development project in Beijing and Shanghai that comprises shopping malls, transportation hubs, hotels, high-end residences and office blocks.

The centres are built on prime locations with transportation hubs in Beijing and Shanghai, and are modelled after the concept of a city within a city around the theme of Work, Live, Play. Their transportation hub in Beijing is the largest in Asia.

The Guoson Centres have earlier won the China and Asia Pacific Property Awards to qualify for consideration for the International Property Awards, which is held in association with Bloomberg Television. The award is regarded as the world's most prestigious accolade in the field of property development.

Lee believed that one of the reasons Guoson Centre clinched the Best International Mixed-Use Award was its emphasis on value for the community.

We look at the project from the community angle. We are giving back to the community, said Lee who listed eco-friendly features as one of the important features in her company's development projects.

We also have the mass rapid transit system which contributes to the livelihood of the people in China.

Lee is also proud of the 40,000 sq m sky garden in Guoson Centre, an open-space roof garden which the company would landscape and provide its clients with green recreational space.

Lee also said that winning the award strengthened the company's confidence in working on large-scale, integrated mixed-use developments.

Guocoland China, a Singapore-listed property investment arm of Malaysian conglomerate Hong Leong Group, was established in 1994. It has invested an estimated US$3.5bil (RM11.03bil ) in China with a land bank of 2.5 million sq m in Beijing, Shanghai, Nanjing and Tianjin.

By The Star

YTL to sell properties to Starhill REIT

YTL Corp Bhd, via its units, will dispose of four of its hospitality-related properties to Starhill Global Real Estate Investment Trust (Starhill REIT) for RM472 million.

In a filing to Bursa Malaysia today, it said the properties were Cameron Highlands Resort, Hilton Niseko, Vistana Penang and Vistana Kuala Lumpur.

YTL said it had entered into four separate sale agreements for the disposal via its direct and indirect units, namely, YTL Land Sdn Bhd, Niseko Village K.K, Business & Budget Hotels (Penang) Sdn Bhd, and Prisma Tulin Sdn Bhd.

"The disposals will enable the group to unlock and realise the fair value of the properties," it said. It said Starhill would lease the properties for an initial lease period of 15 years, and an option to renew for a further term of 15 years.

YTL said the cash proceeds from the disposal would be used entirely by its units for repayment of bank borrowings, payment of cumulative preference share dividends, redemption of preference shares, payment of special dividends, and general working capital purposes.

By Bernama

YTL Crop subsidiaries dispose of properties for RM472m

KUALA LUMPUR: YTL Corp Bhd’s four subsidiaries are selling four properties for a total indicative disposal consideration of RM472.0 million to Starhill REIT under a corporate exercise to reposition Starhill REIT as a full-fledged hospitality REIT

YTL Corp said on Tuesday, Dec 14 the subsidiaries were YTL Land Sdn Bhd, Niseko Village K.K., Business & Budget Hotels (Penang) Sdn Bhd and Prisma Tulin Sdn Bhd.

They had entered into four conditional sale and purchase agreements with Mayban Trustees Berhad (as the trustee for Starhill REIT) to dispose of the properties -- Cameron Highlands Resort; Hilton Niseko; Vistana Penang; and Vistana Kuala Lumpur.

It said the vendors, except for YTL Land Sdn Bhd and Cameron Highlands Resort Sdn Bhd -- the current hotel operator for Cameron Highlands Resort -- had entered into four lease agreements with the trustee for the lease of the properties which shall be effective upon the completion of the proposed disposals.

Starhill said in a separate announcement "the corporate exercise is part of the rationalisation exercise to reposition Starhill REIT as a full-fledged hospitality REIT".

By The EDGE Malaysia

Global Cap, WCT unit in RM688m pact

Global Capital & Development Sdn Bhd (GCD) has signed an agreement with Platinum Meadow Sdn Bhd, a wholly-owned unit of WCT Bhd, for a RM688 million commercial development in the Medini Business District at Iskandar Malaysia, Johor.

GCD chief executive officer, Keith Martin, said the 4.12-hectare development would add to the range of commercial projects already scheduled for development in the business district.

"The key plans include a media village cluster development to support Pinewood Iskandar Malaysia Studios, a US$150 million (US$1=RM3.10) film and television production facility project, which is expected to create over 3,000 jobs.

"The project is located close to the business district," he told a media briefing after signing the agreement with Platinum Meadow here today. Martin said GCD would also take a larger role in the success of Medini.

"Currently, we are conducting a feasibility study to develop Plaza Medini, a two million sq ft commercial mixed project consisting of office space, hospitality venues, service apartments and retail outlets," he said.

Meanwhile, WCT Land Sdn Bhd’s general manager (sales and marketing), Stewart Tew, said the RM688 million commercial development in Medini Business District was its second venture in Iskandar Malaysia.

"WCT’s latest investment adds to its growing presence in Medini, building on a joint venture deal with Iskandar Investment Bhd last year to develop 1Medini, the city's first residential development located in Medini North.

"It has a gross development value of RM600 million," he said.
Tew said One Medini Sdn Bhd would develop the project (1Medini), a 70:30 per cent joint venture between WCT’s unit, WCT Land and Medini Land Sdn Bhd a subsidiary of Iskandar Investment and was scheduled for completion by 2015.

The 142ha Medini Business District is located next to Medini North, the city’s lifestyle, retail and tourism hub as well as connected to Medini South, a high-end waterfront residential and leisure community.

By Bernama

KYM secures jobs from Vale

PETALING JAYA: Industrial packaging manufacturer and property developer KYM Holdings Bhd has been awarded a contract valued at RM585,911 by Vale International SA for the provision of consultancy services for the acquisition of land and development order approval.

KYM said in an announcement to Bursa Malaysia yesterday that Vale had instructed it to acquire the land for the construction of a 2.5km-long jetty and for the construction of temporary site office facilities for their proposed iron ore distribution centre and pellet plant in Teluk Rubiah, Perak.

KYM's 54%-owned Harta Makmur Sdn Bhd sold 488ha of leasehold land in Teluk Rubiah to Vale for RM196mil cash last year.

Vale has plans to invest RM9bil in an iron ore distribution centre for Asia on the purchased land.

By The Star

SunCity, Sunway accept merger proposal

Sunway City Bhd and Sunway Holdings Bhd, two Malaysian property developers, said their respective boards accepted a merger proposed by Jeffrey Cheah, chairman of both companies.

Sunway City’s board said in an exchange filing that its board considered advice from independent directors and Goldman Sachs (Malaysia) Sdn Bhd.

Sunway Holdings said in a separate statement that its board took independent advice from OSK Investment Bank Bhd.

By Bloomberg

Mah Sing proposes to buy land

MAH SING Group Bhd has proposed to buy two parcels of prime land in Section U5, Shah Alam, through its wholly owned subsidiary Mestika Bistari Sdn Bhd, for RM65.9 million.

In a statement to Bursa Malaysia, Mah Sing said the total gross area was about 72,115 sq m with some 35,244 sq m in total net area.

The price per square foot was set at RM84.91, it added.

By Business Times

Mutiara reaps RM76m from housing sales

Mutiara Goodyear Development Bhd accrued RM76.3 million from the sale of 119 terrace houses in phase one of Nadayu 92 Kajang and additional units from phase 2 of the company's maiden project in Kajang.

The 100 per cent take up rate for phase one of the project last Saturday was not only overwhelming but prompted the company to open part of the next phase of the project for sale, much to the delight of buyers.

"As of Sunday, 145 units were sold between RM433,000 and RM1.023 million each," said Executive Chairman Hamidon Abdullah in a statement today.

"The concept of gated and guarded with good communal amenities within a central green is alien in Kajang. "Proven now, this is what our purchasers are looking for," said Hamidon.

Having reached this stage, he said the company must now get on with the construction. "This will be the real test for Mutiara. The proof is when the keys are delivered," he added.

By Bernama

PHB secures anchor tenants for Nu Sentral

Both Parkson and GSC take up about 25 per cent of the 460,000 sq ft net lettable area in Nu Sentral, says Pelaburan Hartanah Bhd

Pelaburan Hartanah Bhd (PHB) has secured two anchor tenants, Golden Screen Cinema (GSC) and Parkson, for its seven-storey retail development called Nu Sentral in Kuala Lumpur Sentral.

Nu Sentral is part of a bigger 2.4ha integrated commercial development called Lot G, being jointly developed by Malaysian Resources Corp Bhd and PHB.

"Both Parkson and GSC take up about 25 per cent of the 460,000 sq ft net lettable area in Nu Sentral," PHB managing director and chief executive officer Kamalul Arifin Othman told Business Times.

The development will also have a 27-storey office building with a net lettable area of 450,000 sq ft.

Lot G, with gross development value of RM1.4 billion, is slotted for completion in 2012. It is set to be one of the developments PHB plans to inject into its recently-launched Amanah Hartanah Bumiputera unit trust scheme.

Kamalul said PHB also was in the final stage of evaluation for the development of an integrated commercial complex on a five-acre site at Jalan Ampang.

"We are talking to several parties now, and looking at starting physical work on phase one in mid-2011," he added.

The development is slotted to have a gross development value of RM1 billion and also to be injected into AHB.

PHB is the sponsor for AHB, a RM1 billion unit trust aimed at increasing Bumiputera participation in the commercial property sector.

The fund enjoys beneficial ownership of five properties, ultimately owned by PHB. They are three office buildings CP Tower, Wisma Consplant in Damansara and 26 Boulevard in Putrajaya; Tesco Setia Alam and an industrial complex in Shah Alam.

Kamalul declined to reveal the terms of the beneficial ownership agreement but said the arrangement maximises the unit trust's income distribution to ensure that unitholders will enjoy a competitive and consistent return from their investment.

Early estimates are that initial returns could be in the region of 6 per cent for the first year of the fund.

By Business Times

Forecast earnings for Bolton raised

Bolton is a "buy" with a price target of RM1.50 a share, says OSK Research, noting that Bolton has completed the acquisition of 23 acres in Ukay Perdana for RM72 million, slightly ahead of schedule.

The land comes with a ready development order and substantial earthworks done which should allow for speedy launch in 2Q11.

The project consist of 98 units of gated & guarded zero-lot bungalows with a gross development value of RM220 million.

"We raise our FY12-13F earnings by 3-18 per cent to RM53 million and RM92 million respectively to factor in the project," says OSK Research.

By Business Times

The regeneration of Sentul

When the YTL group took over Taiping Consolidated Bhd in 2001, one of the priced assets that came with it was a piece of land in Sentul.

Much of the early concept for that master plan development stemmed from the Sentul KTM Komuter station and its tracks which split the 294-acre land.


Datuk Yeoh Seok Kian ... ‘We will monitor demand for future residential and commercial projects.’

It was on this basis that the group decided to make Sentul a transport hub, leveraging on the commuter station that was already there and the golf course, which it had turned today into a private park for residents.

Sentul is located 5km north-west from the heart of Kuala Lumpur and 45 minutes from KLIA. Taiping Consolidated eventually became YTL Land & Development Bhd (YTL Land), a 64% subsidiary of YTL Corp Bhd.

Executive director Datuk Yeoh Seok Kian recently unveiled Sentul's first commercial development d7, a seven-story block comprising 20 retail stores on the ground floor, 78 office suites and 34 duplex offices in Sentul West. The project is completed and 100% sold.

Another project d6, on Sentul East, is being planned. A sky bridge connects the two. d7 was launched at RM380 per sq ft a few years ago.

It is expected to be priced about RM650 per sq ft in the secondary market. Rental rates are between RM3.50 and 4.00 per sq ft.

The seven storey project will have offices, retail and food and beverage outlets. It will be a low-rise office building with courtyard and communal spaces.

It will have two unique office layouts duplex units with skylights, pantry and spacious interior and office suites, which come as empty shells with flexible configurations.

Yeoh says the company will build residential and commercial projects with a total sales value of about RM8bil over the next seven years. That location will be among YTL Land's largest property development.

The plan was to characterise the two halves differently. Over time as Sentul West becomes more established, the community is likely to be more senior and relatively more sedate, compared with the community in Sentul East which will cater more to the up-and-going younger group of people living there, he says.

Covering 186 acres, Sentul West will be the crown jewel of the location comprising a 35-acre private park and residences, offices and retail shops.

Sentul East, which spans 108 acres, with all its vibrancy, will set the tone for modern downtown living.

Yeoh says between 15% and 20% of its targeted projects for that location has been completed since work started on that site in 2002, beginning with The Tamarind in Sentul East and subsequently The Maple in Sentul West.

We will monitor demand for future residential and commercial projects to ensure good buying interest for each project, Yeoh says, alluding to the uncertainties that plague the global economy today and the effects on Malaysia's property market.

But for now, he says there is much they can be proud of. Public infrastruture has improved significantly over the years and Sentul now had a iconic development the new KTM train station, a connecting hub that anchors Sentul West and Sentul East.

Pedestrian sidewalks and skywalk, improved traffic systems, LRT and commuter trains are also part of Sentul's transportation plan, Yeoh says.

Sentul Link also provides access to Jalan Sentul and Jalan Ipoh by connecting Jalan Mahameru at the intersection of Jalan Kuching.

This access helps alleviate existing traffic congestion at the Jalan Mahameru-Jalan Ipoh, Putra World Trade Centre intersection, he says.

When completed, Sentul will have a mixed development of 7,000 units of residential properties, commercial offices and retail outlets.

We are also trying to improve Sentul's past image of being a place that's often plagued by criminal activities, Yeoh says.

He says too often, city development projects tend to focus on decentralisation and the relocation of communities, which ultimately results in cities losing their identity.

The regeneration of Sentul is not just about renewal of the physical environment and wealth. It is also about the renewal of its community, their access to local services and their relationship with the area and the people that live and work there, he says.

YTL Land, which has a market capitalisation of about RM1.05bil, currently has a land bank (with no holding costs) of over 2,000 acres with a sales value of about RM12bil.

By The Star

BCB targets Klang Valley

KLUANG: Johor-based property developer BCB Bhd will focus on building its presence in the Klang Valley property market over the next three to four years.

Group managing director Datuk Robert Tan Seng Leong said the company was confident it would be able to compete with established players in the Klang Valley.

He said BCB was in the midst of setting up a permanent office in Mont' Kiara, Kuala Lumpur to mark its commitment to become one of the major property players in the Klang Valley.

It is only natural for us to move beyond Johor and our presence in the Klang Valley will open up opportunities for us to venture into other states including Penang, Tan told StarBizWeek after the company AGM on Wednesday.

He said BCB would be launching two maiden property projects in the Klang Valley in the third and the fourth quarters of 2011.

The first project comprises three bungalows, priced from RM3mil, at Lorong Awan Jawa, Taman Yarl.

The second project is Secret Garden @ Kiara on a 2.02ha site beside Solaris Mont' Kiara, which consists of 352 condominium units in five 30-storey blocks with a gross development value of RM500mil.

Tan said the units, with built-up areas ranging from 1,400 to 4,000 sq ft would be priced at RM650 per sq ft and BCB expected the project, when completed in three years, to generate a pre-tax profit of RM100mil.

Being the new boy on the block, our selling price per sq ft is slightly lower than what the established players offer and we believe this will be our strong point to attract buyers, he said.

He said BCB had engaged building consultants and landscape architecture companies from Shanghai for Secret Garden @ Kiara and would award the construction of the project to a leading Japanese or South Korean contractor.

Tan said BCB would bank on its close relationship with property companies in China, especially from Beijing and Shanghai, in marketing the project to buyers in China as many rich Chinese were looking to buy properties in South-East Asia.

He also said BCB was actively looking for land in the Klang Valley for future development and was willing to undertake projects on joint-venture basis with land owners.

For the financial year ended June 30, BCB recorded net profit of RM2.12mil on revenue of RM91.07mil against RM3.6mil and RM93.07mil respectively the previous year.

By The Star

The perils of the American dream

There was this tagline The American Dream is truly attainable! in a local newspaper advertisement marketing US properties.

The advertisement highlighted earning an annual rental income with a three-bedroom detached house of up to 20%, which in Malaysia, would be considered a bungalow.

The nice house and attractive proposition aside, is that American dream really attainable? And if it is, is it sustainable?

If it were, the US government would not need to pump nearly US$1 trillion into the economy and neither would US President Barrack Obama speak to CEOs to seek their help to ease unemployment which is running at more than 9%.

Malaysia's unemployment rate is 3.2%, which is technically considered as full employment. But this piece is not about the American economy, or the Malaysian economy.

It's about the pursuit of the American dream which Hollywood and savvy marketing have enticed us with over the years. That American dream constitues a nice house in a middle class neighbourhood, sons who drive to college, daughters who are trendily dressed in class.

They take annual holidays and are up to date with the latest trends and lifestyle. They go after the latest gadgets that technology has spawned. Sounds familiar? But that lifestyle has also incurred high household debts which in some cases has resulted in foreclosures in the United States.

The situation in United States today is due to choices made years ago. It did not begin with Lehman Brothers fall in 2008, it started way before because of materialism and consumerism.

The Americans have been so good at marketing and advertising, they have made consumerism and marketing into an art and the Americans bought into it.

They are selling that same dream to Asia and other parts of the world just as they have very successfully sold us the various gadgets that technology has spawn.

Out of a population of 28 million, Malaysia has a working class of 12.5 million, of which two million are foreign workers. Of the remaining 10.5 million, 1.5 million are in the public sector.

Only 5.5 million are formally employed in the private sector. The remaining 3.5 million are making a living as traders.

Of late, the authorities and the press have been talking about being in the middle income trap. The middle income group has a monthly salary of between RM2,000 and RM10,000.

Most of us belong to this group whose profile is a house, or several houses, in the Klang Valley and the major towns of Malaysia, with school going children in private or overseas schools and universities. It also includes young graduates who earn slightly less than RM2,000 but who within a short time, move from lower income bracket to the lower middle income group.

This middle income group comprises about half of the 12.5 million working population, who are in a way pursuing that American or Malaysian dream.

The resulting trend is that house buyers no longer seek to buy a house, but to buy a lifestyle.

And developers prefer to build lifestyle homes, because the margin is greater. Lifestyle housing also gives them the added edge of branding themselves.

If it is an apartment, the bigger the better. Buying a house is no longer enough, one has to buy a lifestyle house with designer fittings and sanitary ware.

Education for the children is a premium. Technologically advanced gadgets and branded attire completes the picture.

In short, technically we are geographically in a different location but the people and that American dream remains the same.

Some 30 to 40 years ago, the manufacturing sector was the mainstay of the American economy. It now accounts for 12% of US jobs. Today, services, creation and innovation accounts for a large chunk of it.

In Malaysia, manufacturing used to account for about 35% of gross domestic product (GDP). Manufacturers used to be the largest employers.

Today, contribution from that sector has dropped to 29% of GDP, giving employment to a third of the 5.5 million private sector salaried workers.

The service sector is expected to be the largest employer this year, constituting more than half of the total employment, followed by manufacturing.

For years, the problem in the United States was hidden by cheap debt. We have that today in Malaysia. Banks are pushing attractive mortgage terms. Another way to finance that lifestyle is to leach from the Employees' Provident Fund to finance home mortgages, children's overseas education and private investments in unit trust.

And so the baby boomers (those born in the the 1950s and 1960s) have to postpone their retirement because banks are now approving loans up to the age of 65 or 70.

Easy debt has become a millstone in latter years. Come 2011, house buyers who purchased properties with the 5/95 scheme and variations of it, will be getting the keys to their properties. They paid a downpayment of only 5% of their property price in the first quarter of 2009.

They will now have to cough out the other 95%. Americans are slowly relinquishing that American dream. We are aspiring towards it. Is the American or Malaysian dream sustainable? Food for thought.

Like other middle class wage earner, assistant news editor Thean Lee Cheng is herself a victim of the American dream.

By The Star

Taiwan plans special property tax

Taiwanese authorities said Friday they plan to levy a special property tax in a bid to curb rising real estate prices and narrow the widening income gap.

The finance ministry is proposing a minimum 10 percent special tax on non-residential properties that change owners frequently, aimed at countering speculative activities, said an official, without elaborating.

The proposal, which requires parliament's approval, is expected to take effect as early as March 2011, according to local media.

Taiwan's property prices have been on the rise on the back of the island's recovery from the global recession last year.Meanwhile, the gap between the island's richest and poorest has continued to widen according to various government figures.

The ministry is also planning a "rich man's tax" on high-end products, services and trade to help reduce the gap between the island's haves and have-nots.

The most prosperous 20 percent in Taiwan reported average disposable incomes of 1.79 million Taiwan dollars (56,000 US) last year, or 6.34 times more than the income of the poorest 20 percent, according to government figures.

This was the highest since 2001, said the Directorate General of Budget, Accounting and Statistics, which attributed it to a global trend of growing inequality.

By The Star

Firm buys 14.1ha due to overwhelming response

Vast: Teh showing a model of the Garden Residence project.

Following the overwhelming response towards the freehold Garden Residence (GR) in Cyberjaya, Mah Sing Properties Sdn Bhd (MSPSB) has acquired another 14.1ha of prime freehold land adjacent to the GR township for the Clover@Cyberjaya project.

The Clover@Cyberjaya will be an extension to the 46.5ha Garden Residence and will have the same concept with gated and guarded living environment.

MSPSB chief operating officer Teh Heng Chong said the intention was to create an exclusive enclave on this new land.

“This is the company’s future development which will be launched sometime next year. Registration is now open for the Clover properties which are two- and three-storey semi-detached homes, said Teh.

He said the Garden Residence, which the company was focusing on now, comprised medium- to high-end residential homes of two and three-storey Super-link, semi-detached and three-storey bungalows within four precincts. They were conceptualised as a self-sustaining residential development.

To create a resort lifestyle environment, each precinct will have its own perimeter fencing and guard house to ensure an exclusive living environment and better security.

There are a total of 676 units in all four precincts combined. However the 69 units of the three-and-half-storey Blossom garden bungalow in Precinct 4 or known as the Blossom Precinct, is the most exclusive edition of the Garden Residence.

Priced at RM3.2 million, these premier luxury bungalows boasts a designer central park, a rooftop garden with jacuzzi, 9+1 bedrooms/nine bathrooms, private lift and a dedicated entertainment floor all within a spacious built-up of approximately 7,796 sq ft.

“Once completed, the residents of Garden Residence will have access to The Promenade, an integrated community clubhouse and retail amenities. It is a self-contained township so to speak, with lush landscape surrounding the entire development,’’ added Teh.

He said Mah Sing was conscious to nature thus green features have been cleverly integrated into these homes.

The units in Precinct 1 (Cassia), Precinct 2 (Evergreen) and Precinct 3 (Jacaranda), is currently 85% sold within six months of launch at the sub-sale level before they were completed. The Blossom Precinct is open for registration.

According to Teh, the homes have a potential of appreciating in value due to the demand in residential properties in this part of Kuala Lumpur.

Teh said, the homes come with green building features such as rain harvesting system, solar powered water heaters, surface run-off collection, ample natural lighting in each home with north-south orientation and light colour roof material for better heat and light deflection.

Prices for the resort homes in Precinct 1-3 ranges from RM858,800 to RM2.1 million with a built-up of approximately 2,845 sq ft to 4,514 sq ft.

Garden Residence is located within the Multimedia Super Corridor in Cyberjaya and is well connected to the Maju Expressway, North-South Expressway, Damansara-Puchong Expressway, North-South Central Link, South Klang Valley Expressway and the North Klang Valley Expressway.

“With such an extensive linkages, residents will be able to reach their destinations conveniently. The ERL station is just a stone throwaway and the KL Sentral or KLIA just takes less than 20 minutes,’’ said Teh.

Due to its strategic location, Teh added that apart from Cyberjaya, Garden Residence has the potential to enjoy a large market catchment from Putrajaya, Puchong, Subang Jaya, USJ, Petaling Jaya, Shah Alam, Cheras, Seri Kembangan and Seremban.

By The Star

SP Setia on track to hit RM3b sales target

Property developer SP Setia Bhd declined to comment on speculation of a merger but stressed that it is on track to achieve RM3 billion sales target for 2011.

The Edge weekly magazine recently discussed the potential of a merger between SP Setia and Sime Darby Bhd's property unit.



Asked if SP Setia is keen on such a deal after a slew of tie-ups among big local property developers recently, president and chief executive officer Tan Sri Liew Kee Sin declined to comment except to say that the group will continue to grow and compete.

SP Setia's sales target for 2011 would be 40 per cent more than the RM2.31 billion it made last year.

"For the financial year 2011, we expect all our existing projects in the Klang Valley, Johor and Penang to continue doing well," Liew said at a media briefing in Shah Alam, Selangor yesterday.
"In addition, we will shortly be launching KL Eco City, our exciting new integrated green commercial development opposite Mid Valley City which should contribute strongly towards the targeted RM3 billion new sales," he added.

SP Setia plans to launch the RM6 billion "green" mixed-development by January or February next year, he said.

The project will be developed in three phases over at least 10 years and will be a joint venture with Kuala Lumpur City Hall (DBKL), which owns the 9.7ha leasehold land in the Kampung Haji Abdullah Hukum area.

SP Setia is also planning a real estate project with a gross development value of RM1.4 billion in Australia by March or April next year.

It will be on 0.4ha of land in Melbourne which SP Setia bought for RM92.4 million on March 29 this year.

The company expects to build about 800 apartment units and some retail shops there.

The developer has begun expanding overseas to markets such as Vietnam and China to tap Asia-Pacific's economic recovery.

Liew said it is keen to grow its landbank in Malaysia which stands at 1376ha of undeveloped land in various prime locations within the Klang Valley, Penang and Johor. This is expected to keep it busy for at least another decade.

SP Setia would build new townships or integrated commercial developments on any new land.

"We love townships. They are able to generate big volumes for a long period of time," he said.

Liew expects 2011 to be exciting and busy for the group and also the property sector at large.

"Competition will be keen with more developers gaining confidence and launching new products which is a good sign of the health of the market as a whole," he said.

For the year to October 31 2010, SP Setia's net profit and revenue reached RM251.8 million and RM1.7 billion, rising 47 per cent and 24 per cent, respectively.

Projects which contributed to the group's strong performance included Setia Alam and Setia Eco-Park at Shah Alam; SetiaWalk at Pusat Bandar Puchong; Setia Sky Residences at Jalan Tun Razak; Bukit Indah, Setia Indah, Setia Tropika and Setia Gardens in Johor Baru; and, Setia Pearl Island and Setia Vista in Penang.

By Business Times

Townships still a growth kicker for SP Setia

While township development will continue to be a major earnings catalyst for SP Setia Bhd, other bonus re-rating catalysts will be the successful launch of its RM6.0 billion KL EcoCity by January or February next year, says OSK Research.

In a research note today, OSK said the launch of Phase One of the six to 10-year development will likely comprise 12 blocks of boutique offices valued at some RM60 million each, which would be sold en bloc.

"As we understand that some small and medium enterprises (SMEs) are keen in acquiring these office blocks, the launch by first quarter of calender year 2011 looks likely to be well-received and will provide the necessary momentum to kick-start the entire development," said the research firm.

It said the next growth kicker will be the continuing progress at the RM5 billion Setia City, an integrated commercial city in the Setia Alam township.

According to OSK, Setia City Mall, with 60 per cent of the retail space now taken up, is expected to be completed by late next year and open by mid 2012 and give the whole commercial city added impetus.

Setia City will also have a medical centre, hotels, transportation hub as well as a convention centre.

Meanwhile, MIDF Research said performance in financial year 2011 is expected to continue to be underpinned by SP Setia's existing projects in the Klang Valley, Johor Bahru and Penang.

In a filing to Bursa Malaysia yesterday, SP Setia reported a higher pre-tax profit of RM330.967 million for the year-ended Oct 31, 2010 from RM231.112 million in 2009.

The profit was achieved over a bigger revenue of RM1.745 billion against RM1.408 billion previously, with income principally derived from its property development activities.

MIDF said it was not expecting an upward revision in its earnings forecast for SP Setia in view of a general slowdown anticipated in the sales of residential units next year.

By Bernama

SP Setia Q4 net profit up 32% on higher sales

SHAH ALAM: SP Setia Bhd's net profit rose 32.2% year-on-year to RM75.2mil in the fourth quarter ended Oct 31 due to higher sales and gain from the disposal of Tesco Hypermarket in Bukit Indah, Johor.

Revenue for the quarter grew by 41.7% to RM558mil while earnings per share increased to 7.39 sen from 5.59 sen previously.

For the full financial year 2010 (FY10), the group achieved a net profit of RM251.8mil from revenue of RM1.7bil, which was 47% and 24% higher respectively from the previous financial year.


Tan Sri Liew Kee Sin ... ‘For financial year 2011, we targ et to achieve RM3bil in sales.’

President and chief executive officer Tan Sri Liew Kee Sin said the positive results were mainly due to the group's innovative marketing campaigns, Best for the Best and Invest in SetiaHomes.

Speaking after the company's results briefing yesterday, Liew said SP Setia sales for the year stood at RM2.31bil, which was 40% higher than FY09.

For financial year 2011, we target to achieve RM3bil in sales as all our projects in Klang Valley, Johor Bahru and Penang continue to do well.

We will soon launch our KL Eco City, an integrated green commercial development opposite Mid Valley City, he said.

Liew is also looking forward to SP Setia's 800-apartment project, which will be launched in Melbourne in March or April 2011.

To date, SP Setia has a land bank of 3,430 acres.


The KL Eco City project has a gross development value of RM6bil while the Melbourne project RM1.4bil.

For FY10, the board has proposed a final dividend of 14 sen per share less income tax of 25%.

This would add to the total dividend to 20 sen less income tax of 25% for FY10, representing a payout of about 60.6% of the group's net profit.

Meanwhile, RAM Ratings has reaffirmed its AA3 rating for SP Setia's RM500mil nominal value 2% redeemable serial bonds with 168,151,302 detachable warrants (2007/2012) with a stable outlook for long term.

The rating reflects SP Setia's strong business profile as a leading property developer in Malaysia, said RAM head of real estate and construction ratings, Shahina Azura Halip, in a statement yesterday.

With its strong branding and innovation, SP Setia is expected to continue churning impressive sales based on its track record of annual sales growth over the past decade irrespective of economic cycles.

On the flip side, the rating is moderated by the uncertainties of SP Setia's foreign ventures.

The company's debt is expected to increase from RM1.29bil (as at end-July) to about RM2.1bil, some RM400mil higher than an earlier projection.

SP Setia has, however, redeemed RM250mil of its bonds on Nov 23.



By The Star

EPF: RM1.9b invested in property sector

The amount invested in the property sector constituted 0.44 per cent of the EPF's total investment of RM420 billion.

The Employees Provident Fund (EPF) has invested RM1.89 billion in the property sector which in return contributed RM67.29 million to its revenue in the third quarter of this year.



Chairman Tan Sri Samsudin Osman said the amount invested in the property sector constituted 0.44 per cent of the EPF's total investment of RM420 billion.

"As a pension fund which aims at providing a comfortable life for retirees, EPF's investments were made through a due diligent process to benefit the contributors in the long run," he said at the opening of the EPF Kuantan building in Bandar Indera Mahkota, Kuantan, yesterday.

Sultan Ahmad Shah of Pahang officially opened the RM12.8 million building which was completed in March 2006. Present was the Tengku Mahkota of Pahang Tengku Abdullah Sultan Ahmad Shah.

Samsudin said the EPF had also invested in other sectors and subscribed to the government's securities, bonds and equities and each decision was made after a thorough study to minimise risk.

The approach has allowed the EPF to give competitive dividends every year, which was the main objective for the establishment of the retirement fund.

As for Pahang, he said there were 168,000 active contributors in the state with a total savings of RM5.27 billion. Some 94,388 of them are in Kuantan with their savings totalling RM3.08 billion. Samsudin said there were 9,194 employers in Kuantan who contributed about RM42 million monthly to the EPF.

By The Star

Rehda Penang: High cost of land the reason

The Real Estate and Housing Developers' Association (Rehda) of Penang is claiming that the high cost of land is the main reason for houses being sold at high prices in the state.

Its chairman, Datuk Jerry Chan Fook Sing, said the high cost of land was also the reason for developers' inclination towards building upmarket homes in the state.

The limited land in Penang Island has caused landowners to sell their land at very high prices and this directly impacts the price of houses, he said.

"When the land is bought for a high price, developers are forced to sell the houses at a high price as well.

"Therefore it is not fair when only the developers are blamed in this matter," he told reporters in George Town yesterday.

To ensure affordable housing prices for all levels of society in the state, the government would have to find a suitable mechanism to overcome the problem, he said.

A recent report quoted Senior Fellow at the Social, Economic and Environment Institute (Seri) Dr Michael Lim Mah Hui as saying that the average price of a house in Penang was RM540,000 last year.

The report also said the price of house in the state exceeded that of the average house price in Kuala Lumpur at RM390,000.

By Bernama

China's property bubble getting worse

BEIJING: A Chinese government think tank has warned the country's real estate bubble is getting worse, with property prices in major cities overvalued by as much as 70 per cent, state media reported Thursday.

Of the 35 major cities surveyed, property prices in eleven including Beijing and Shanghai were between 30 and 50 per cent above their market value, the China Daily said, citing the Chinese Academy of Social Sciences.

Prices in Fuzhou, capital of the southeastern province of Fujian, had the worst property bubble with average house prices more than 70 per cent higher than their market value, according to the survey conducted in September.

The average price in the 35 cities surveyed was nearly 30 per cent above the market value, the report said.

Property prices have remained stubbornly high despite the government adopting a slew of measures since April including hiking minimum downpayments to at least 30 per cent and ordering banks not to provide loans for third home purchases.

Prices in 70 major cities were up 0.2 percent in October from the previous month and 8.6 percent higher than a year ago, official data showed.

The increase came after prices gained 0.5 per cent month on month in September, which was the first increase since May.

Massive stimulus measures taken since 2008 to fend off the financial crisis injected huge amounts of liquidity in the market and have been blamed for fuelling real estate prices.

"The government target is not clear and policy is incoherent," CASS senior research Ni Pengfei was quoted saying.

By AFP

Stratified property issues need attention

KUALA LUMPUR: Developers of stratified properties should be more transparent with buyers about the buildings' overall maintenance cost.

International Real Estate Federation (Fiabci) Malaysia president Yeow Thit Sang said there had been a lot of unresolved problems, especially on the collection of maintenance fees, in such properties.

Yeow said there were two million strata-titled residential units and the problem was growing but the resolution had not been fast enough.

Speaking on the sidelines of the 5th Property Management Seminar here yesterday, he said even before the purchase of such properties, buyers must be informed of the maintenance fees and processes involved.

He said the Commissioner of Buildings (COB) should also act more forcefully and speedily to overcome the problem as it had the authority to deal with houseowners who did not pay maintenance fees.

The COB must send a message because they have the power to attach the property of the defaulting condominium owners, he said.

On grey areas involving stratified properties such as fees for car parks in a mixed complex, Yeow said there was a need to find a correct formula on how to handle and share the fees which had different users.

By Bernama

i-City plans second data centre worth RM300mil

SHAH ALAM: i-City, a subsidiary of listed I-Bhd, plans to build a second data centre with two towers worth RM300mil.

The company would form a strategic alliance with HDC Data Centre to develop the centre and the first tower was expected to be completed in three years, I-Bhd chief executive officer Eu Hong Chew said yesterday.

i-City's existing data centre was fully tenanted, he told reporters after signing a pact with HDC for the development of a green data centre here.

The first 50,000 sq ft data centre was completed a year ago and HDC occupies half the space.

It was envisaged that i-City would focus on building aspect of the development while HDC would be responsible for the equipment and facilities, Eu said.

By Bernama

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