MRT project cost now estimated to reach RM50b

PETALING JAYA: The construction cost of the entire 150km Mass Rapid Transit (MRT) urban transport project may run up to RM50bil, three sources said, two of whom are directly involved in the project. The third is an independent party doing consulting work for the MRT line.

“When Gamuda-MMC first gave an estimate a couple of years ago, a figure of RM36.6bil was brought up for the 150km line,” said the source who is directly involved with the project.

“Now that we are concentrating on one line Sg Buloh-Kajang we have asked them for an estimate and they said it may cost RM18bil to RM20bil to construct. This does not include the rolling stock, land acquisitions and other provisions.”

Land Public Transport Commission chief executive officer Mohd Nur Ismal Kamal said the Government was doing all it could to drive down the cost.

“With land acquisition and rolling stock, it could come up to RM50bil, but it is too early to say,” he said. “We will know the full picture later as the project is still at the public display stage. This will end in middle of May.”

“From the feedback, we will then consider the alignment and the length of the platforms for the stations, whether it is a four-car train or more,” Mohd Nur added.

He said that once the public display was over, a target cost would be worked and agreed on. Once the tender was over, it may be different from the target cost, he said.

“The MRT is not just a transport project. It will have a catalytic effect,” Mohd Nur said, adding that an independent party would scrutinise the project plans and ensure that optimum value was derived.

The entire project will be fully funded by the Government and a special-purpose vehicle under the Finance Ministry would be set up to advise, manage and raise the funds.

CIMB Research in its report yesterday said that the higher cost for the Sungai Buloh-Kajang line was not a surprise as the earlier number was based on 2009 prices. (Higher construction cost and inflation may contribute to the current cost which is estimated to reach RM20bil for the Sg Buloh-Kajang line.)

“Based on the average RM353m/km for the line, the entire MRT project (150km) could be worth RM53bil compared with the current estimate of RM36bil,” it said, commenting on the outcome of Syarikat Prasarana Negara Bhd's contractors' briefing on Thursday.

The briefing was to provide an overview of the MRT project and the job opportunities available.

The event was packed with more than 100 contractors, according to a Prasarana spokesman when contacted by StarBizWeek.

Prasarana project director Zulkifli Mohammad Yusof and Datuk Azmi Mat Nor, who represented the Project Development Partner (PDP), chaired the event. (MMC-Gamuda JV Sdn Bhd manages the project as the PDP.)

CIMB Research said the briefing focused on the Sg Buloh-Kajang MRT line's project structure, alignment specifications, tender guidelines/timelines and updated cost breakdown.

“The main takeaways from the briefing were the prequalification process that will start this month and the total estimated cost for Sungai Buloh-Kajang MRT line that is RM20bil,” it said.

It said Prasarana would start the ball rolling with the elevated structure package (elevated portion is worth RM10.8bil of the total cost of RM20bil) which would be broken up into several sub-packages and was open to all contractors except the PDP.

“Priority will be given to contractors with financial strength, expertise and track record. Contractors who do not prequalify will still be able to bid for the subcontracting packages,” it said.

It added that this suggested the awards were likely to take place no earlier than May 11, while the July 11 timeline for the start of work was still intact.

Prasarana and the PDP will work together in rolling out the award of the MRT packages and disbursing the funds via progress payments.

“Funding/payment will be drawn down from a special company under the Finance Ministry,” it said.

By The Star

SP Setia may be eyeing more land

PETALING JAYA: Property developer SP Setia Bhd may buy more land following its latest acquisition of 268 acres in Cyberjaya, analysts said.

They believe that the recent share placement by SP Setia to its major shareholders might help boost the company's acquisition plan as the exercise was expected to raise some RM1bil to finance its existing and future projects.

HwangDBS Vickers Research, in its report yesterday, said that as SP Setia build up its war-chest with the upcoming RM1bil placement and record RM1.8bil unbilled sales, the company had a knack of winning lucrative land deals, and was planning for more high-density mixed development and townships in the Klang Valley.

Kenanga Research echoed the sentiment, saying that RM300mil to RM400mil of the potential RM1bil cash from the share placement might be used to buy land.

“Hence, there is still room for more sizeable land deal in the near future,” it said in a report yesterday.

It added that the company's net gearing was still at a comfortable level of 0.26 times while cash pile remained sizeable at RM1bil as at Oct 31, 2010.

SP Setia shareholders recently approved a proposal for the placement of up to 15% of the company's issued and paid-up capital that would involve the issuance of up to 152.52 million new shares.

The share placement will involve three major shareholders in SP Setia Skim Amanah Saham Bumiputera (ASB), under the banner of Permodalan Nasional Bhd; Employees Provident Fund (EPF); and SP Setia president and chief executive officer Tan Sri Liew Kee Sin.

ASB is the largest shareholder in SP Setia with 20.12% stake while EPF has 14.47% and Liew 11.96%.

On Wednesday, SP Setia said it had bought the freehold land in Cyberjaya's flagship zone from Setia Haruman Sdn Bhd for RM420.4mil.

The land will be developed as Setia Eco Glades project by Setia Eco Villa, a 70:30 joint-venture company between SP Setia and Setia Haruman.

Liew said the project would be a mixed residential and commercial development and was expected to have a gross development value of RM3bil.

The project, targeted at high-end customers in Cyberjaya, offered RM2mil for a semi-detached house and a minimum RM3mil for a bungalow. Construction is expected to commence in financial year 2012 and will span over six years.

HwangDBS said Cyberjaya had started to come on buyers' radar screen, given its improved connectivity (20 minutes from Kuala Lumpur via new highway), increased investment by multinational companies and availability of amenities.

“Mah Sing Group Bhd's Residence and UEM Land Bhd's Symphony Hills have recently seen strong take-up at new benchmark prices,” it said.

By The Star

Mutiara Goodyear launches lifestyle homes with GDV of RM40m

KUALA LUMPUR: MUTIARA GOODYEAR DEVELOPMENT Bhd has launched its new phase of its lifestyle homes in Nadayu 92, Kajang with a gross development value (GDV) of over RM40 million.

It said on Friday, March 4 the new phase included four bungalows priced from RM2.2 million and 24 semi-detached homes priced from RM1.3 million. The built-up of the bungalows and semi-detached homes are 6,142 sq ft and 4,579 sq ft respectively.

Its executive chairman Hamidon Abdullah said: “We are encouraged by the good take up rate for Phase 1 which was fully sold within a day during its launch early this year. Hence, we expect a good take up rate for the bungalows and semi-detached homes.”

Nadayu 92, Kajang is a gated and guarded community spread over 69 acres of freehold land with total GDV of RM350 million.

By The EDGE Malaysia

Prasarana to get part of RRIM land for development

PETALING JAYA: Syarikat Prasarana Negara Bhd will be allocated a parcel of land in the proposed Sungai Buloh Rubber Research Institute Malaysia (RRIM) development project for commercial development as part of the “rail plus property” model being used to offset the cost of building the mass rapid transit (MRT), sources said.

“Negotiations are ongoing between Prasarana and the Employees Provident Fund (EPF),” said one source.

“The parcel of land (to be allocated) will be used to build the MRT's main depot but it will also include commercial development above and possibly around the depot, in the form of retail and office space,” another source explained.

Prasarana has been appointed the MRT project and asset owner.

It has been reported that the Government will fund the MRT, possibly through the raising of bonds, and that Prasarana will adopt Hong Kong's “rail plus property” approach in its urban public transportation system, whereby parcels of land are developed to offset the cost of construction of public transport systems.

Prasarana will be given land to develop in joint ventures with developers and the proceeds from that will be repaid to the Government.

It has also been reported that Prasarana is finalising prospective land parcels that the company would develop.

Last March, the Government announced that EPF would form a joint venture to develop 3,000 acres of land in Sungai Buloh owned by RRIM into a new hub for the Klang Valley. The new hub in Sungai Buloh will lead to over RM5bil of new investments, it was then said.

The RRIM land is also among the sites identified for re-development under Budget 2010.

The location and size of RRIM's land near the fast developing Kota Damansara area holds significant attraction for developers and is expected to command a price premium, analysts have said.

The redevelopment of the RRIM land is also part of the Greater Kuala Lumpur Strategic Development Project initiative under the 10th Malaysia Plan.

In July last year, the EPF said it had engaged several consultants to advise on the development of the land.

Subsequently, Kwasa Land Sdn Bhd was set up by the Federal Government and will act as a development manager on behalf of the EPF and the Government. Kwasa Land will be involved in conducting open tenders or negotiations with developers relating to the land parcels in the RRIM development.

It is left to be seen if Prasarana would have to pay for the parcel of land in RRIM or whether it will be given to it free. “This is something being worked out now but it is important to note that Prasarana is wholly-owned by the Government and the MRT project is also Government led,” a source said.

By The Star

Pressure on office rental rates

PETALING JAYA: The abundance of office space supply in 2011 is expected to create pressure on rental rates for this property sub-sector.

Henry Butcher Malaysia Sdn Bhd chief operating officer Tang Chee Meng said there would be a slight weakening in rates in the next three to six months as there was an oversupply of office space in the market.

“A lot of buildings are being completed and there will be an increase in supply. Unless demand picks up, this will put pressure on rents,” he said.

According to a January report by DTZ Research, there was no new addition to the office stock in Kuala Lumpur in the fourth quarter of 2010 (Q410) as some of the expected completions were delayed to 2011.

“There was, however, a reduction in total stock of 500,000 sq ft due to the demolition of two old office buildings for redevelopment,” it said.

It said the office market continued to experience active enquiries but the take-up of space declined due to relocations outside the city and consolidations.

“As a result, the overall occupancy rate of office buildings in Kuala Lumpur decreased from 87.1% in Q3 2010 to 86.4% in Q4 2010.”

According to DTZ, office rents in Q410 continued to face downward pressure, with average prime office rents dropping marginally from RM5.98 per sq ft per month in Q310 to RM5.97 per sq ft in Q410.

Khong & Jaafar Sdn Bhd managing director Elvin Fernandez said he expected office rents to hold in the next three to six months. “I don't think it will rise much. At best, it will hold,” he said.

DTZ said there was about 13.23 million sq ft of new office space in the pipeline between 2011 and 2013, the majority of which was scheduled for completion in 2012.

“In addition, there is an announcement for a proposed 100-storey office by Pemodalan Nasional Bhd of 2 million sq ft that will put further pressure on future competition.”

It said the effort to target 100 multinational companies to have a presence in Malaysia and the proposed commencement of high impact infrastructure projects such as the MRT and the extension of the LRT lines would spur growth in office demand in the long term.

“However, the outlook for the sector is expected to remain soft in the next few years as it will take time to increase demand with these new initiatives while there is a substantial amount of new supply coming up, most of which are of a speculative nature.

“The expected forthcoming general election may cause a short period of uncertainty in the short term as companies may want to remain uncommitted until the political situation is clearer,” said DTZ.

By The Star

SP Setia to launch RM3b project in Cyberjaya

The property market in Cyberjaya is proving too hard to ignore for SP Setia Bhd as the developer is taking a second stab at the growing area.

Malaysia's biggest developer by sales will launch a RM3 billion eco-themed project in Cyberjaya, Selangor, early next year.

"Cyberjaya is a market you must not ignore. We are looking at 3,000 to 4,000 expatriates working there who need housing," chief executive officer Tan Sri Liew Kee Sin said in a briefing in Cyberjaya yesterday.

"We will be targeting mainly the senior staff of multinational companies and Malaysians who want to invest or live here," he said.
Cyberjaya is the base for many multinational companies' support centres. Chipmaker AMD, for instance, recently opened an office that will support the finance and IT needs of its global operations.

SP Setia's project will be called Setia Eco Glades and it will feature 2,437 units of superlink houses, semi-detached homes, bungalows, condominiums and shoplots.

It has partnered Setia Haruman Sdn Bhd, the master developer of the Cyberjaya Flagship Zone for the project. SP Setia will hold 70 per cent of the joint venture while Setia Haruman holds the rest.

The joint venture is buying 107.2ha of land from Setia Haruman for RM420.4 million or RM36 per square foot.

This is the second attempt by SP Setia to buy land in Cyberjaya. In 2007, it agreed on a deal to buy 63.18ha from Setia Haruman for RM190.6 million but this fell through in 2008.

Liew said SP Setia aims to price its semi-detached units and bungalows from RM2 million and RM3 million, respectively, similar to homes at its Setia Eco Park development in Shah Alam.

The first phase of the project, comprising condominiums and semi-detached homes, is targeted to be launched by the first quarter of next year.

"We are bullish on sales. Cyberjaya has ready infrastructure," Liew said.

On funding, Liew said SP Setia will partly borrow from banks.

By Business Times

SP Setia buys Cyberjaya land for RM420mil

CYBERJAYA: Property developer SP Setia Bhd has bought 108.5ha of prime freehold land in Cyberjaya's flagship zone for RM420.4mil from Setia Haruman Sdn Bhd.

The land will be developed as Setia Eco Glades project by Setia Eco Villa, a joint-venture company between SP Setia Bhd which holds 70% and Setia Haruman Sdn Bhd 30%.

SP Setia president and chief executive officer Tan Sri Liew Kee Sin said the project would be a mixed residential and commercial development. “It is expected to have a gross development value of RM3bil,” he told a press conference after a signing ceremony between SP Setia and Setia Haruman.

Liew represented SP Setia while Setia Haruman by its chairman Tan Sri Mustapha Kamal Abu Bakar.

Liew is optimistic about the demand as the project will be targeted to high-end customers in Cyberjaya.

“Cyberjaya is a market that you must not ignore. It provides huge potentials as there are ready customers from 5,000 multinational companies operating there,” he said.

Asked on the price range, Liew said: “We want something that is really upmarket development.”

Giving indications based on Setia Eco Park in Shah Alam, Liew said it offered RM2mil for a semi-detached house and a minimum RM3mil for a bungalow.

Setia Eco Glades will be created as a new eco-themed development in Cyberjaya based on its flagship development, Setia Eco Park.

The project is expected to commence in financial year-end 2012 and span a six-year development period.

Meanwhile, Mustapha Kamal said there was about 680ha still available for sale in Cyberjaya.

“I truly believe after this signing ceremony, the land price would not be the same any more,” he added.

By Bernama

Residential property prices likely to stay flat

PETALING JAYA: Property prices of the local residential sub-sector are expected to be flat in the next few months as fears of rising oil prices due to the political unrest in the Middle East may damper investor and buyer confidence.

Khong & Jaafar Sdn Bhd managing director Elvin Fernandez said the local residential sub-sector would not see “insane run-ups” in prices like last year due to both global and local factors.

“Stock markets in the region have not been on the run-up. The uncertainty in oil prices and measures taken by Bank Negara to curb rising property prices will see (prices) within the local residential property sector holding,” he said when contacted by StarBiz yesterday.

Fernandez said the local residential sub-sector experienced “insane run-ups” in prices towards the second half of 2010 but, in light of both local and foreign events, the run-up in prices “will be arrested.”

Henry Butcher Malaysia Sdn Bhd chief operating officer Tang Chee Meng said he expected prices of the residential sub-sector to be stable in the next three to six months.

“Property prices won't go up as crazily as it did last year,” he said.

There would still be interest for landed properties and high-rise developments would experience a bigger slowdown, he said, adding that if oil prices shot up, people might put off property investment.

In its report, DTZ said that to push sales, developers were now selling smaller units in line with market demand, especially aiming at the investment segment of the market which was still relatively strong.

“Capital values are stable in most locations with an average of RM599 per sq ft, but rental rates continue to experience deterioration as new completions add competitive pressures to existing projects,” it said.

Tang also said if oil prices shot up, people might put off property investment.

By The Star

SP Setia buys prime land in Cyberjaya

Property developer, S P Setia Bhd, has bought 108.5 hectares (268.11 acres) of prime freehold land in Cyberjaya's flagship zone for RM420.4 million from Setia Haruman Sdn Bhd.

The land will be developed as Setia Eco Glades project by Setia Eco Villa, a joint-venture company between S P Setia Bhd which holds 70 per cent and Setia Haruman Sdn Bhd 30 per cent.

S P Setia president and chief executive officer Tan Sri Liew Kee Sin said the project would be a mixed residential and commercial development.

By Bernama

Rehda: Demand for green buildings needs to be market driven

PETALING JAYA: The development of green buildings continues to gain momentum in Malaysia every year but the demand for it needs to be market-driven.

Real Estate and Housing Developers Association (Rehda) president Datuk Michael Yam said local property players should not develop green buildings or incorporate energy-saving elements into their projects just because it was the “in thing” to do.

“Malaysia can pass laws (on green buildings) and developers can go into it voluntarily. But at the end of the day, if the market is not demanding it, than it's not practical.

“It needs to be market driven,” he said at a press conference prior to the Rehda Youth Green Tour yesterday.

Yam said while developing and living in green buildings made financial sense in the long term, not everyone might be ready to embrace this concept just yet.

“It costs more to go green and not everyone can afford it (purchasing green properties). Developers need to evaluate what the market wants.”

“You need to do it (offer green buildings) gradually and slowly induce the public on the benefits of going green. This will trigger off a green revolution among developers.”

Yam said awareness of the benefits of going green (other than the property sector) was growing in Malaysia, adding that media coverage of green-related issues was also becoming more common.

Yam said the awareness on the benefits of going green was still at its infancy stage in Malaysia and that the public needs to be educated about its advantages.

“If everyone is willing to subscribe to this higher cost, then (the prices of green buildings) will become more affordable because of the economies of scale,” he said.

Meanwhile, the Green Tour, which was hosted by Rehda Youth, yesterday organised tours to four environmental friendly developments in the Klang Valley.

The developments were 1First Avenue, Challis Damansara, GTower and Ken Bangsar. Held for the first time, the tour aims to educate the public on green buildings.

The tour was officiated by Housing and Local Government Minister Datuk Wira Chor Chee Heung.

By The Star

Legoland Malaysia set for 2012 opening

The development of Legoland Malaysia in Iskandar Malaysia by IDR Resorts and Merlin E ntertainments is gathering momentum for its grand opening in 2012.

Datuk Syed Mohamed Syed Ibrahim, president and chief executive officer of Iskandar Investment Group and chairman of IDR Resorts, said next year would be a significant year for Iskandar Investment with the launch of completed projects
such as Legoland Malaysia under the company's first phase of development in Iskandar Malaysia.

"There will be more job opportunities for all," he said in a statement today.

He said RM200 million worth of contracts had already been awarded, and tourist receipts when Legoland Malaysia opens in 2012 would further boost the local and regional economy.

Iskandar Investment, he said, was committed to creating value for the community and driving Iskandar Malaysia's vision of becoming a sustainable metropolis of international standing.

IDR Resorts, a member company of Iskandar Investment, is responsible for the development of Legoland Malaysia in partnership with Merlin Entertainments.

Over 40 interactive rides, shows and attractions for the theme park are currently being fabricated for Iskandar Malaysia.

Creation of the 15,000 Legoland model structures at the Model Building Centre for Legoland Malaysia in the Nusa Cemerlang Industrial Park is also progressing smoothly.

By Bernama

Call for entries to Malaysia Property Award 2011

The International Real Estate Federation (Fiabci) Malaysia is calling for entries to the 19th Malaysia Property Award 2011.

Fiabci Malaysia is accepting entry submissions until March 31 for projects developed in Malaysia between year 2006 and 2010. A total of 14 award categories are offered this year, including Environmental (Rehabitation/ Conservation), Heritage (Restoration/ Conservation), Hotel, Industrial, Master Plan, Office, Public Sector, Purpose-Built/ Specialised Project, Residential (High Rise), Residential (Low Rise), Resort, Retail, and Special Award for National Contribution and Sustainable Development.

The projects will be judged based on design, workmanship, impact on the environment, ease of facilities management, financial viability, marketing strategies, benefit to the community and lifestyle improvements. Winners will be announced in mid-October.

Winners of this programme will automatically enter the final selection process of the Fiabci International Prix d’ Excellence Award, which will be contested by property development projects from 60 countries.

For more information, contact the secretariat at 03–6203 5090/ 5091 or email fiabcimalaysia@fiabci.com.my.

By The Star

Ireka positive Aseana Properties will start to contribute in next two to three years

Ireka is involved in the construction of phases three and four of Sandakan Harbour Square in Sabah

KUALA LUMPUR: Ireka Corp Bhd is confident its 23%-owned associate company, Aseana Properties Ltd, which has been weighing down on the company's financial performance with its losses, will be able to contribute positively to the group in the next two to three years.

Ireka group executive director Lai Voon Hon said Aseana's portfolio included seven development projects in Malaysia and three projects in Vietnam. It also has a 16.4% equity investment in Ho Chi Minh City-based Nam Long Corp.

“Most of the projects in Aseana are only kicking off from this year and we see Aseana contributing positively to Ireka from financial year 2012 onwards.

“Going forward, the number of projects that will be able to contribute to Aseana's bottomline will increase.

“We are confident that beyond 2012, there will be quite a bit of profits coming in from Aseana,” Lai told StarBiz.

For the nine-month period ended December 31, 2010, Ireka recorded a pre-tax loss of RM10.26mil, compared with a pre-tax profit of RM8.16mil in the preceding year. Revenue was 7% higher at RM308.8mil.

The loss was in part attributable to a share of loss in Aseana Properties of RM7.5mil and a mark-to-market loss for share investment in Kinh Bac City Development Shareholding Corporation of RM1.6mil.

According to Lai, having Aseana as the property fund arm of Ireka is a good business model.

As the exclusive development manager of the fund, Ireka earns a fixed annual management fee and a performance fee from Aseana.

The fund holds all of Ireka's earlier ongoing property projects in Malaysia, leaving the parent company, which is also involved in construction, with an asset-light balance sheet.

“Aseana gives Ireka the platform to expand its expertise to emerging markets such as Vietnam and for the group to undertake more development projects as compared to Ireka undertaking the projects on its own.

“Listed on the London Stock Exchange, Aseana has a larger capital base and the ability to own more development assets or investments.

“Ireka currently manages a portfolio of current and upcoming projects with a total estimated gross development value (GDV) in excess of US$2bil,” Lai added.

He said with Aseana more mature now, Ireka was looking to beef up its property development division and was actively scouting for land in prime areas in Malaysia and Vietnam. It is also looking for joint venture opportunities with land owners.

Together with Aseana Properties, Ireka will soon commence on a number of new development projects, including a residential project in Jalan Kia Peng, Kuala Lumpur.

According to Lai, the plan is to raise the ratio of earnings contribution between the property and construction divisions to 50:50 over the next five years from 5:95 now.

As at Dec 31, 2010, Ireka's construction order book amounted to RM1.003bil with approximately RM430mil still outstanding.

Over the last nine months, the group has tendered for jobs totalling over RM1bil and has successfully secured three projects with total contract sum of about RM297mil.

Its local construction portfolio include SENI Mont' Kiara, a high end condominium project in Mont' Kiara; an integrated hotel cum office towers project at KL Sentral and the Kulai-Second Link Expressway Interchange.

It is also involved in the construction of phases three and four of Sandakan Harbour Square in Sabah, comprising a modern lifestyle mall and a hotel.

Lai said Ireka, which had been active in Vietnam's property market over the past four years, was ready to export its construction expertise there.

The group is confident Vietnam's property and construction markets would bounce back strongly in a year or two's time.

Lai said the construction industry in Vietnam was growing in tandem with the economic development of the country and demand for expertise in the infrastructure, commercial and residential segments would continue to rise.

Earlier this month, Ireka Engineering and Construction Vietnam Company Ltd (IECVCL), a wholly-owned subsidiary of Ireka Corp Bhd, secured a construction package to build a general hospital at the International Hi-Tech Healthcare Park (IHHP) in Binh Tan District, Ho Chi Minh City, in Vietnam.

The contract, valued at RM27.58mil, comprises the construction of a reinforced concrete structure and related ancillary works for the general hospital.

By The Star (by Angie Ng)

Bina Puri eyes RM250m revenue from property

The Jesselton Condominum. Bina Puri is on an expansion trail to strengthen its presence in Sabah. Inset: Bina Puri Holdings Executive Director Mathew Tee

KOTA KINABALU: Bina Puri Holdings Bhd is projecting a total of RM250mil sales revenue from its property division or 20% of the group's overall ongoing projects this year.

Bina Puri Holdings Bhd executive director Mathew Tee, 35, in a media Q&A session at Bina Puri's office at Alam Mesra here on Saturday said the contribution marked the construction group's effort to shift away from its core business activities to property development.

Of the amount RM66mil is from Sabah, said Tee adding that excellent performance of property market in Sabah had contributed positively to their property division from nothing last year to 20% of total gross development this year.

The group's other substantial property contribution came from its new property launches in the Klang Valley, Penang and Johor.

Tee said the company's shift towards property sector was part of its exercise to diversify and balance the group activities from mainly construction.

“We find that property division gives better profit margin. We foresee that in next five years Bina Puri will have a 50:50 mix between construction and property,'' said Tee adding that this year was a record year for Bina Puri Group with a revenue exceeding RM1bil.

The group bullish performance, he said, was due to large volume turnover of ongoing projects which was on average of RM350mil per year or about RM18mil per month.

For the past five years, the group secured on average of RM1.5bil projects per year.

Tee said the group's overall total ongoing projects was RM5.7bil with unbilled portion amounting to RM2.6bil.

Bina Puri's outstanding orderbook of RM2.5bil will roll out over the next two year.

Tee said the company is on an expansion trail to further strengthen its presence in Sabah. Bina Puri has been in Sabah for 15 years and had completed more than RM1.5bil worth of projects here. Currently, it has over RM600mil worth of ongoing projects here.

Tee said the projects include the construction of two high-end condominium; Jesselton View and One Jesselton at Kepayan, affordable housing scheme in Sandakan, Central Lecture Hall & Post Graduate Centre for Universiti Malaysia Sabah and an 8-storey medium-cost apartments in Menggatal.

He added that 28% totalling about RM2.8bil of the group's ongoing projects in Malaysia came from Sabah and Sarawak.

Bina Puri Holdings Bhd is a Bursa Malaysia Main Board company with 35 years of experience in civil and building construction both locally and internationally.

By The Star

Bina Puri unit secures RM1.1bil projects in Brunei

MIRI: Bina Puri Holdings Bhd's subsidiary, Bina Puri (B) Sdn Bhd has secured a total of RM1.1bil worth of projects in Brunei.

Bina Puri (B) Sdn Bhd chairman Datuk Ali Abdullah in a Q&A session in Kuala Belait, Brunei on Friday said the company had an unbilled portion totalling RM265mil until 2013.

He said it planned to secure another RM600mil worth of projects in the Sultanate this year.

He said currently, the company was awaiting the results for two tenders worth about RM192mil which would be known within the next three to six months.

He said, Bina Puri was working on another five tenders worth RM416mil earmarked for this year. Bina Puri, which is involved in construction and infrastructural development, started operations in Brunei in 2007.

“We are looking at the possibility of hopefully securing about RM600mil,'' he said adding that Brunei offered great investment potential especially in civil and construction works as well as hospitality management.

Ali said that among the ongoing projects secured were the construction of 2,000 units of houses for Brunei Economic Development Board (BEDB), which is due for completion in April; infrastructural and housing works in Kampung Lugu and the redevelopment of Ong Sum Ping serviced apartments in Bandar Seri Begawan.

He said Bina Puri group started collaborating with the BEDB in the RM692mil project in 2009, adding that the venture in Brunei accounted for 16% of its current projects totalling RM5.7bil.

By The Star (by Diana Rose)

Building Asian cities in a sustainable way

The future of Asia is in its cities. It is the cities and the activities generated therein that will help the continent march forward. But in order for cities to thrive, it needs people. Although still one of the less urbanised continents, Asia's urban population has grown from 32% in 1990 to 42% in 2010, according to the United Nations Population Division.

By 2026, half of Asia's 3.7 billion population from India to China (excluding the Middle East) will be city dwellers.

Are the cities prepared to receive the exodus? But let's not go too far. Is Kuala Lumpur ready to welcome the expected 7.2 million that will be calling Greater KL their home? And what is needed to make KL ready?

By 2020, seven out of 10 Malaysians will be living in what will be known as Greater KL. If this is to materiaise, there is much work to be done. After all, that is just nine years away.

Depending on who one speaks to, there are various issues that contribute to a city's livability.

In a recent study commissioned by Siemens and performed by independent Economist Intelligence Unit (EIU), the Asian Green City Index examined eight categories, namely energy and carbon dioxide emission, land use and buildings, transport, waste, water, sanitation, air quality and environmental governance.

The study, carried over the past few months, covered 22 cities. The cities were chosen independently, without invitations by the respective governments in order to enhance the Index's credibility and comparability.

The study concluded that Singapore is Asia's greenest metropolis, ranked well above average. The study effectively equates being green with livability.

Kuala Lumpur was ranked average, together with Bangkok, Beijing, Delhi, Guangzhou, Jakarta, Nanjing, Shanghai and Wuhan.

Karachi in Pakistan, was ranked well below average while Ho Chi Minh in Vietnam was excluded for lack of available information.

Barbara Kux, a member of the managing board of Siemens AG and the company's chief sustainability officer, says the index is not about choosing winners, but sharing information to enable cities to cope and to plan for their future.

“The Asian Green City Index supports cities in their efforts to expand their infrastructures on a sustainable basis. We want to enable Asia's up-and-coming urban centres to achieve healthy growth rates coupled with a high quality of life. It is not about choosing winners,” said Kux.

Siemens Malaysia Sdn Bhd president and CEO Prakash Chandran says, overall, the index is a good reflection of where KL stands in terms of its sustainability.

“Ranking average overall is a great start for KL and this index is a stepping stone for us to move forward to improve our city's livability factor,” he says.

“With the current government plans and greater awareness, the index could not have come in a timelier manner. Siemens is eager to be part of national initiatives to boost KL's performance for the future. Ultimately, we want to be involved in the transformation of KL into one of the greenest, most liveable cities in Asia,” says Prakash.

Above average

Kuala Lumpur ranks above average for air quality and transport. It also scored well for better-than-average levels of sulphur dioxide, nitrogen dioxide and suspended particulate matter.

It lagged behind in waste and water management.

Head of research of Asian Green City Index and senior consultant for EIU, Jan Friederich, says Kuala Lumpur was given the thumbs up for transport because of its light rail system which measures 0.27km per sq km, making it the fourth longest superior network in the index, and second longest among cities in the mid-income range (GDP per capita of US$10,000-US$25,000). He based it on the length of the track, not usage.

While KL ranked positively in transport, there were negatives in the area of waste and water management. Friederich says there is a high usage of convenience packaging and low waste collection rate. It also does not seem to have strong policies on reusing and recycling, he says. Waste generation is 816kg per capita last year, more than double the index average of 375kg.

Water management was another negative. Water consumption is also high and Kuala Lumpur has one of the highest leakage rates with burst pipes, with leakages estimated at 37% compared with the index average of 22%, says Friederich.

So how prepared is KL to count among the cities of tomorrow?

As Kux puts it: “That's the nice thing about cities. Unlike corporates, cities share information and learn from one another.”

NOTE: The European Green City Index was launched in 2009. Last year, Siemens unveiled the Latin American Green Index.

By The Star

I-Berhad, foreign partner to replicate Lotte World at i-City

SEOUL: I-Berhad, an integrated ICT-based developer, will partner a foreign firm to replicate South Korea's Lotte World at its multibillion-ringgit i-City development in Shah Alam, Selangor.

The idea is to earn new corporate tenants at i-City and improve the company's earnings, said I-Berhad chief executive officer Datuk Eu Hong Chew.

Lotte World, built by Korea's Lotte Group in 1989, comprises a hotel, mall, the world's largest indoor theme park, an outdoor amusement park and retails.

When asked if I-Berhad will partner Lotte or has had any discussions with the group, Eu declined to comment.
"We are looking at the Lotte World concept, an attraction within the city, to build up i-City. We are looking at other things," he said on the sidelines after visiting some of South Korea's major attractions this week.

I-Bhd is building up its tourism products at i-City to generate new income stream. Eu said I-Bhd targets to be profitable in the current year ending December 31 2011 driven by growth within all its three divisions, the newest being tourism.

I-Berhad also targets to generate 50 per cent income from property de-velopment, and 25 per cent each from property investment and tourism.

The company, which has been developing i-City since 2005, was able to break even in the last two financial years mainly because it sold and rented data centres with a combined 500,000 sq ft of space.

"We will be adding new attractions this year. The idea is not to make money from tourism but for it to complement our knowledge centre. We believe having certain tourism products and new ideas will attract multi-national firms and small and medium enterprises," Eu said.

For the nine months ended September 30 2010, I-Berhad posted a net loss of RM1.73 million on revenues of RM6.4 million.

I-Berhad is planning to invest RM10 million this year to equip its existing SnoWalk attraction at i-City with real snow fall.

On Wednesday, I-Berhad signed a strategic alliance agreement with BK Korea, a super snow machine manufacturer, in Seoul for exclusive rights to use the later's machines in Malaysia.

At the signing, Eu said the snow fall will attract more visitors to i-City. Currently, SnoWalk, which has been operating since last December, is attracting 90,000 visitors per week.

BK Korea will assemble the equipment in Seoul and ship them to i-City in March.

By Business Times

MRT and real estate: A union on the right track

The introduction of a rail transit investment brings benefits to the transportation system and accessibility of the population to employment, retail, and recreational facilities. One of the most significant impacts of a rail transit project is the impact on property values.

Numerous accounts on the impact of rail transit on property values have surfaced over the past decades with varied results. Most often appear as isolated anecdotes in documenting the impact of rail transit on property values.

The most prominent way to gauge the value of a property is through the price or value of a home that you own or the rent that you pay. Noteworthy is that the amount of space devoted to residential property is generally greater than that devoted to other uses.

Given that the number of residential property owners and tenants are greater than the number of consumers of other types of real-estate, the effects of rail transit on property values are most acutely felt in the residential sector. Hence, most empirical research on the impact of rail transit on property values focuses on the impact on residential property values.

In a US-based 1999 study to examine the potential for housing near MRT stations, comparisons were made between the property values of new housing developments around several MRT stations and developments well outside of MRT stations. Housing units near the MRT stations were found to enjoy higher rents over those away from the MRT system. For example, one-bedroom apartment units within 500 metres of a MRT station in a suburb of San Francisco rented for approximately 10% more per square foot than one-bedroom units away from the station.

Given the positive correlation between rail transit service and property values, is there any potential for negative effects caused by the new transit infrastructure?

Examination of the effects of proximity to rail transit for two neighbourhoods in a Taiwanese city showed that proximity to rail showed a positive effect on property values on the west side, but a negative effect in the neighbourhood on the east side. In the neighbourhood on the west side, property values increased close to US$1,045 for every 100 metres.

The opposite held true for the east side. For every 100 metres closer to the MRT station, the property values dropped by US$965. This negative effect might be due to such factors as noise, perceptions of crime, traffic congestion and visual intrusion. In the case of the west side, the value of accessibility provided by the rail line more than compensated for these nuisance effects. On the east side, the value of accessibility was not enough to compensate for the nuisance effects.

Other studies found the rail transit shows positive correlation to property values to areas where the access provided by the transit service is valued.

In Miami, higher growth, higher priced neighbourhoods experienced greater positive effect than stagnant, lower priced neighbourhoods. In Atlanta, it appeared that the opposite was the case.

The higher income neighbourhoods did not appear to show value associated with being near rail while lower income neighbourhoods did show positive value with that association. While this might appear to be a contradiction, these facts highlight one of the primary reasons why rail transit imparts value to properties. This is the case for the high growth, higher valued districts in Miami and the lower income groups in suburban Atlanta. Positive property value impacts are primarily felt within limited zone around transit stations, generally a reasonable walking distance of up to one-quarter or one-half mile.

Enhancing pedestrian accessibility from the station to the surrounding area can increase the likelihood that properties will be within a reasonable walking distance of the station, hence experience a value benefit.

Improvements to station area accessibility can take the form of increasing the density of streets and pedestrian paths, improving safety, lighting, and other pedestrian amenities, and by providing additional station entrances and portals to allow direct access to the station from more locations.

Although the exact impact of nuisance variables such as noise and visual obstruction caused by terrestrial and elevated rail guide ways has not been extensively reviewed, several studies suggest that such nuisances do lessen the benefits that properties near the rail alignment and rail stations experience. Rail investment planning thus should seek to mitigate these types of effects through effective design and engineering. Rail transit investments have proven to create positive effects on property values. In fact, the effect of a new fixed guideway transit investment is two-fold. First, transit investments improve the convenience of accessing other parts of a region from station locations.

Second, rail transit accessibility enhances the attractiveness of property, increasing the likelihood that the property can be developed or redeveloped to a more valuable and more intense use.

Documentation of the impact of rail transit on property values primarily focuses on the first effect. Property value premiums due to increases in accessibility range between 3% and 40%.

Property value premiums due to increases in the ability to develop or redevelop property depend on the land use and amount of development allowed on the property.

Slight negative impacts of rail on property values are generally attributed to noise, visual intrusion, and the association of the rail right-of-way with industrial uses.

In the case of our 55km MRT project that will run from Sungai Buloh to Kajang, we expect that property values, for example undeveloped land in key hot spots such as on the north side of the line, would surge more than 100% especially near the four proposed interchange stations (Sg Buloh, KL sentral, Maluri and Kajang).

Rahim is executive chairman of Rahim & Co Group of Companies.

By The Star

It’s a small, small world

It is interesting to observe how things are becoming increasingly fluid and inter-connected these days as the whole world turns into a big global village.

With the easy connectivity provided by the Internet and 24-hour cable television that broadcast news as they are happening, it is as if people are living next door to each other even if they are actually thousands of miles apart.

With Skype, Facebook, Twitter and other social networking sites, the global village has grown even smaller and there is no stopping the massive integration and coming together of people from all walks of life and from different parts of the world in pursuit of some common goals and interests.

Travelling has also been made easier and more economical with the advent of low-cost carriers.

The rapid globalisation and borderless world we are living in today offers immense opportunities for more changes and advancements to be made in all fronts of the social, economic and political spheres.

The rapid pace at which people are moving and sharing information has certainly heralded greater awareness of things that are happening around us.

And with whistleblower website WikiLeaks, there is definitely a growing demand for greater accountability and transparency in the way governments, business corporations and communities operate. Irrespective of which side one comes from, we are after all one big global community. The people may be separated by physical distance and other differences, but they actually share many similar traits and aspirations - the need to thrive in a good and safe environment.

The rapid globalisation and coming together of people is increasingly evident in the real estate sector. This can be seen in the rising number of cross-border real estate transactions.

It is not unusual to find people owning multiple homes in different cities around the world as they form the growing population of global citizens. But the threat of inflation is spooking many governments in Asia and they are now on red alert to prevent asset bubbles from boiling over within their borders. Who can blame them when there is much liquidity in the system while the second round of quantitative easing in the US is believed to be driving liquidity to the various asset markets and pushing prices upwards. The speed in which this “hot money” flow into and out of countries has the potential to create another economic carnage of immense proportions if left unchecked. Much asset value will be washed out when these money retreat from our shores.

As it is, just at the press of a button, big sums of monies are crossing borders almost every second. While genuine investors should be welcome as they create jobs and contribute to the country's economic growth, those who only want to hype up the value of their assets for their own selfish gains should be reined in.

Locally, inflationary pressures and the inflow of foreign capital have started to drive Malaysia's property prices upwards and there is growing worry that many middle income earners will not be able to buy their own property, especially in the more upmarket and prime areas. They may have to resort to renting instead.

To address this problem, the opening up of Government-owned land for redevelopment should pay more emphasis to more affordably priced homes to enable the less well-to-do to own properties.

The planned township development on the massive Rubber Research Institute land in Sungei Buloh offers a golden opportunity to kick off a well thought out public housing scheme for eligible Klang Valley folks. It can then be used as a workable model for the other states to follow.

After all, the middle and lower income group still make up more than 80% of the local population.

Deputy news editor Angie Ng is convinced there will be more intermigration of people around the world as dictated by Mother Nature and climate changes.

By The Star (by Angie Ng)

Project to unlock prime land

The clean-up of the Klang River is beyond a massive beautification job as analysts say the project was likely to unlock land potentially for commercial development in areas surrounding it particularly near the city centre of Kuala Lumpur.

PETALING JAYA: The Water of Life project to clean up the Klang River, initiated by the Government under the Economic Transformation Programme (ETP), will unlock land in strategic locations for commercial development, say analysts.

An analyst with Affin Securities said the project was likely to unlock land potentially for commercial development in areas surrounding the Klang River; particularly near the city centre of Kuala Lumpur.

“We see this (unlocking of prime land) as a real possibility,” he said, adding that it would be difficult to estimate the value because details of the project have not been released.

An analyst with a local research unit concurred that the project was beyond a massive beautification job.

“The Government cannot afford to do projects purely for aesthetics costing billions. It will have to look for ways to make the project commercially viable, while befitting the environment and community,” he said.

He also said many issues would need to be addressed quickly, if the project was to go on as scheduled.

“One of the major problems we foresee in the implementation of the project would be land acquisition besides finding the money to fund the project,” he said.

An OSK Research note dated Feb 10 said the clean-up of the Klang River project was estimated to cost between RM8bil and RM10bil with phase 1 costing between RM1bil and RM2bil.

Ekovest co-founder and executive chairman DatuK Lim Kang Hoo confirmed that the company was the lead contractor of the project and that would start this year.

“We are still at the negotiation level, especially on the scope of work,” Lim said.

He agreed that the Water of Life project could unlock valuable land for commercial development in prime locations .

However, he declined to elaborate further, while MRCB was unavailable to comment at press time.

In a filing with Bursa Malaysia on Wednesday, Ekovest announced it had been appointed by the Government as the project delivery partner.

It said in a statement that Ekovest and Malaysian Resources Corp Bhd (MRCB), under a joint venture (JV), had received a letter of intent from the Government via the Kuala Lumpur mayor.

“This intention is subject to further negotiation between Ekovest Bhd and MRCB JV and the River of Life Joint Development Committee which was set up to govern the project on behalf of the Government in relation to the scope and cost of services of the project,” said Ekovest.

Ekovest and MRCB in a joint statement to Bursa Malaysia said the Water of Life project has been identified as one of the nine entry-point projects identified in the Greater Kuala Lumpur/Klang Valley National Key Economic Area under the ETP.

Ekovest is a building construction and civil engineering works company that have carved a named in construction projects such as the Danga Bay water front and property development in Johor.

MRCB is also engaged in construction related activities, environment engineering and property development.

By The Star

Malaysian Annual Real Estate Convention 2011 (MAREC 2011) is back!

Malaysian Annual Real Estate Convention 2011 (MAREC 2011) is back! Themed “Malaysian Real Estate Profession, Glocal or Global”, MAREC convention is dubbed the annual event and the meeting place for all colleagues in real estate business to catch up on the latest happenings and updates.

MAREC 2011 is designed to welcome not only real estate agents or negotiators but also to equip property buyers, landlords or persons in sales with knowlegable tips where and when to purchase in the escalating cost of a potential property and in the fast changing property deal. As we all have seen or heard landed properties have appreciated between 20 to 30 % depending on the location.

“Our expertise will touch on commercial properties , offices, industrial and others. Therefore, members of the public and property investors will be able to learn new skills or tips from our panel of elite speakers,” explains President of MIEA Julie Wong.

Knowledgeable speakers will be sharing their thoughts and ideas on how to improve sales and listing techniques under time management, methods to achieve maximum productivity, transforming your business through virtual assistance and positive tips for increasing profit in an informative discussion and sessions. These speakers are carefully selected and come from various countries to share their thoughts and insights. They will have speakers from Singapore, Indonesia,Thailand , America and our home born expertise.

Among the speakers is the newly elected National Association of Realtors (NAR) President, Ron Phipps who will share about the Real Estate Global Market Perspective,how do we embrace globalization, new technologies and developing business at international level. NAR of America have over 1.3 million members and MIEA will be having a linkage with their website on the listing and selling of properties .

Event details as follows:

Date : March 5 & 6, 2011
Venue : Sime Darby Convention Centre, Bukit Kiara, Kuala Lumpur
Fee : RM788 (MAREC members) RM888 (non member) RM488 (Negotiators)

To register for the tour, contact MAREC at 603 – 79602577.

By The Star

Legoland aims for one million visitors

Siegfried Borst (left) and Zainal Ashikin Muhammad Rejab looking at a model of pre-war shop houses made of Lego bricks.

NUSAJAYA: Legoland Development, the operator of Legoland Malaysia Theme Park being built here, expects to see one million visitors passing through its gates in the first year of operations.

Legoland Malaysia Project senior director of operations Siegfried Borst said the company was confident of achieving the target based on the high number of family institutions in the region.

He said unlike in developed countries where the birth rate was declining from year to year, most Asian countries still recorded high birth rate.

“Our theme park targets families with young children aged between two and 12 years old and this demographic serves our business strategy well,'' said Borst.

He was speaking at a press conference after a tour for the media to preview the ongoing development at the Legoland site.

Borst said work on the RM720mil project was progressing well and the theme park was expected to open its doors to visitors towards the end of 2012.

The 26ha theme park will offer 40 interactive rides, shows and attractions. It is located in the centre of a 59ha site in Medini North, a zone dedicated to lifestyle development.

Legoland Malaysia Theme Park is the first component to be developed within Legoland Malaysia Resort. The whole project will also have a retail mall, themed hotel, business hotel as well as office and residential areas.

“We are yet to determine the entrance charges. Our next priority is to talk with potential trade partners to market our park,'' he said.

Borst said unlike other Legoland theme parks which only operated eight months a year and closed during winter, Legoland Malaysia would operate all-year round.

He said the main challenge in developing the park in Malaysia was the “sun and rain”, thus more covered pedestrian walkways needed to be built and trees to be planted.

The other Legoland theme parks are Legoland Billund (Denmark), Legoland Windsor (near London, Britain), Legoland Deutschland (Germany) and Legoland California (the United States).

Legoland Malaysia will have miniature replicas of iconic buildings and structures from across Asia. These include Petronas Twin Towers and India's Taj Mahal.

IDR Resorts director Zainal Ashikin Muhammad Rejab said Legoland Malaysia would create about 1,000 jobs for locals and bring spillover effects to Nusajaya. IDR Resorts is part of Iskandar Investment Bhd (IIB).

IIB had, in December 2008, signed an agreement with Merlin Entertainment Group, which will design and operate Legoland Malaysia.

Zainal said with the opening of Legoland Malaysia, IIB would position Medini North as a tourism hub in the 9,712.45ha Nusajaya.

“An indoor theme park is also coming up at Puteri Harbour just a few kilometers away from Legoland Malaysia and both parks will complement each other to attract visitors,” he said.

The government-backed IIB was formed on Nov 3, 2006 to drive commercial initiatives in Iskandar Malaysia via joint ventures and by offering its land.

By The Star

Tradewinds plans new set of 'jewels'

Tradewinds plans to demolish Crowne Plaza Mutiara Hotel and Kompleks Antarabangsa to make way for a new property project.

Tradewinds Corp Bhd, controlled by businessman Tan Sri Syed Mokhtar Al-Bukhary, plans to demolish two of its prized assets in Kuala Lumpur to make way for a "multi-billion-ringgit" mixed commercial development.

This means that the Crowne Plaza Mutiara Hotel and Kompleks Antarabangsa, both located on Jalan Sultan Ismail, will make way for a new property project.

Chairman Tan Sri Megat Najmuddin Megat Khas said the plan is in the advanced concept stage and could take more than a year to start. However, the development order for the site plan is already out.

"We have a very precious piece of land. The hotel together with Kompleks Antarabangsa is on a 2.43ha land," Megat Najmuddin told Business Times in a phone interview.
Tradewinds, he said, is looking at the possibility of building an office, retail and residence component on the land to provide the group with a recurring income stream.

On how high it would be or would it be just a single tower, he said it will be "something soaring".

Megat Najmuddin added that the cost of construction would be in the tune of "billions" of ringgit.

Based on Tradewinds's latest annual report, the hotel is 38 years old, while Kompleks Antarabangsa is 30 years old.

Crowne Plaza Mutiara is a 35-storey hotel with 565 rooms while Kompleks Antarabangsa is a 21-storey office building with five-split level car parks. As at December 31 2009, the net book value of the office building is RM159.83 million.

In April last year, Tradewinds's 85.1 per cent unit, Tradewinds Hotels & Resorts Sdn Bhd, entered an agreement to sell Crowne Plaza to Symbolic Supreme Sdn Bhd for RM384 million. Tradewinds owns 100 per cent of Symbolic Supreme. The transfer is to facilitate the development.

Based on recent land deals in Kuala Lumpur, the building together with the land may now be worth some RM1.5 billion.

The Crowne Plaza is managed by the InterContinental Hotels Group (IHG). It is understood that IHG may still have eight years remaining under the management contract.

Prior to IHG's management of the hotel, Tradewinds managed the hotel on its own for a short period under the name Mutiara KL.

The hotel first opened as the Kuala Lumpur Hilton.

Tradewinds also owns Hotel Istana, which is located a stone's throw away from Crowne Plaza and Hilton Petaling Jaya and Hilton Kuching.

Other properties under the group include Menara Tun Razak on Jalan Raja Laut, Kuala Lumpur.

By Business Times

SP Setia aims to raise up to RM1.2b for expansion

PROPERTY developer SP Setia Bhd's proposed private placement of up to 15 per cent of its paid-up capital is expected to raise up to RM1.2 billion to fund its existing and future expansion.

"We hope to raise between RM1 billion to RM1.2 billion from the proposed private placement," president and chief executive officer Tan Sri Liew Kee Sin said after SP Setia's extraordinary general meeting (EGM) in Shah Alam yesterday.

The exercise would only dilute minimally the company's share capital base, he added.

Liew plans to maintain his shareholding after the exercise. although another major shareholder, the Employees Provident Fund, wanted to raise its stake "a little bit more".
"We cannot speculate on the shareholding spread of these major shareholders," he said.

The EPF is its second largest shareholder with a 14.95 per cent stake as at December 30. Skim Amanah Saham Bumiputera is the largest, with a 20.11 per cent stake. Liew owns 9.19 per cent.

SP Setia said the private placement would involve a bookbuilding exercise, which includes a roadshow involving about 30 global funds.

At the EGM, shareholders approved the proposed placement and bonus issue on a one-for-two basis after the placement.

"This (private placement) will provide us with ample funds to strongly launch three sizeable new projects without having to forego exciting new landbanking opportunities which may come our way," Liew said.

The three major projects planned for launch this year are the KL Eco City - which is opposite the MidValley - Setia City in Setia Alam in Shah Alam and Fulton Lane in Melbourne. They have a combined gross development value of RM12.5 billion.

The group is also negotiating with the government on a swap deal to buy 16.2ha of prime land in Bangsar in exchange for a new health and research complex on a 22.28ha site in Bandar Setia Alam.

"Apart from projects which are already in the pipeline, we are still aggressively scouting for good landbank to lock in future growth," said Liew, adding that SP Setia has 1,494ha of undeveloped land at the moment.

Liew said SP Setia has achieved a quarter of its yearly target sales of RM3 billion in the first quarter ended January 31 2011.

"We are off to a running start on our current year sales target with RM737 million sales already locked in," he said.

By Business Times

Uda to invest RM200m in mall project

JOHOR BARU: Uda Holdings Bhd will invest between RM200mil and RM250mil to develop Angsana II commercial project, adjacent to its existing Plaza Angsana shopping complex here.

Chairman Datuk Nur Jazlan Mohamed said the project was in planning stage and construction was slated to begin by year-end.

“We are looking at a joint-venture basis and will be inviting interested parties to submit their proposals,'' he told StarBiz on Monday after witnessing the signing of service agreement between Telekom Malaysia Bhd (TM) and United Malayan Land Bhd's wholly-owned subsidiary Seri Alam Properties Sdn Bhd.

He said Uda was looking at developing the project on a joint-venture basis with land owners.

The proposed Angsana II commercial project will be the first shopping complex which incorporates a street-mall concept in Johor Baru.

On the Johor Baru city transformation, Uda had been “informally invited” to participate in the project, said Nur Jazlan, adding that the company was keen on it.

On another development, he said Uda had shortlisted 10 out of 14 local and foreign companies which had submitted their proposals to redevelop the former site of Pudu jail into an integrated property development project on a joint-venture basis.

“They are going to present their proposals before the board of directors this month, “ Nur Jazlan said, adding that names of the winners would be announced by the end of March.

By The Star

MRCB, Ekovest in ETP project

PETALING JAYA: Malaysian Resources Corp Bhd (MRCB) and its joint-venture (JV) partner Ekovest Bhd have been appointed the project delivery partner for the River of Life project.

The project has been identified as an entry-point project identified in the Greater Kuala Lumpur/Klang Valley National Key Economic Area under the Economic Transformation Programme, MRCB and Ekovest said in a joint statement to Bursa Malaysia yesterday.

It said the Ekovest BhdMRCB JV had received a letter of intent from the Government via the Kuala Lumpur mayor.

“This intention is subject to further negotiation between Ekovest BhdMRCB JV and the River of Life Joint Development Committee which was set up to govern the project on behalf of the Government in relation to the scope and cost of services of the project,” MRCB said.

By The Star

Shareholders okay SP Setia’s share placement proposal

Tan Sri Liew Kee Sin (right) at the press conference after the meeting. — Bernama

SHAH ALAM: SP Setia Bhd shareholders approved a proposal for the placement of up to 15% of its issued and paid-up share capital. This would involve the issuance of up to 152.52 million new shares, said SP Setia president and chief executive officer Tan Sri Liew Kee Sin after the company's EGM and AGM.

The company hopes to raise between RM1bil and RM2bil from the proposed placement which will be done via a book building exercise.

The placees are SP Setia major shareholders Amanahraya Trustees Bhd (20.12%), a wholly-owned subsidiary of Permodalan Nasional Bhd, the Employees Provident Fund (14.47%) and Liew (11.96%).

The proceeds from the placement will be used for three major new projects that are being planned for this year.

Some RM762mil will be utilised for its projects in KL Eco City, Setia City in Setia Alam and Fulton Land in Melbourne. These three projects have a combined gross development value of RM12.5bil.

The group is also negotiating with the Government on a land swap deal to acquire 40.22 acres in Bangsar in exchange for a modern integrated health and research facility to be constructed on 55.33 acres in its Setia Alam township.

On the National Institute of Health (1NIH), Liew said the project would stimulate growth in the Setia Alam township as there would be a few thousand civil servants working in the facility.

“They will be working, eating and playing within the township. Setia Alam will become like any other modern urban living place in Malaysia.

“We are now in discussions with the Government to build 1NIH. We will probably commence work in six months' time. Once we deliver 1NIH, then we will start to develop the Bangsar land,” said Liew.

Some RM245mil to RM430mil from the placement proceeds will be earmarked for 1NIH, the Bangsar land and further landbanking acquisitions.

Liew said the Bangsar land was very prime Government land. It would be a mixed residential development with the theme of being Bangsar's cultural centre.

“Bangsar is where the upper middle-class people live. We plan to build a museum for artists, a library and a performing arts centre,” said Liew.

Out of the 11 blocks of buildings in KL Eco City, SP Setia plans to maintain one office tower block of 515,738 sq ft and retail space of 313,605 sq ft for its own use.

“We want to tell our buyers, we will be there, and we will anchor the tower for you. The rental in the Gardens, Mid Valley, which is just opposite our development, is RM8 psf. We are hoping to achieve that same kind of yield,” Liew said.

SP Setia is the largest developer in Malaysia in terms of sales. For its year ended Oct 31, 2010, it achieved a new sales record when its revenue increased 40% to RM2.31bil, while net profit was up 47.06% to RM251.81mil.

It is targeting a 30% increase in revenue to RM3bil for its current financial year.

The group's shareholders also approved a proposal for bonus issue on the ratio of one new share for two existing shares held after the proposed share placement.

They also approved SP Setia's proposal to increase the authorised share capital to RM2.25bil comprising 3 billion shares from RM1.2bil comprising 1.6 billion shares currently.

By The Star

Hua Yang to expand to East Malaysia

Property development company Hua Yang Bhd plans to expand its presence to Sabah and Sarawak in the next two years.

Its Chief Executive Officer Ho Wen Yan said for now he saw Kota Kinabalu as the best entry point for the company to penetrate the new market.

"We have identified Kota Kinabalu as a growing vibrant city with strong economic growth in Sabah and Sarawak, due to tourism, plantation, timber as well as oil and gas.

"We are in talks with several parties from Kota Kinabalu, and expect to have at least one project there within one or two years," he told reporters after a media appreciation luncheon here, today.

The company plans to buy 100 to 300 acres of land in Kota Kinabalu with most of them to be in the outskirts. He said any land acquisition would be funded by internal funds or bank
borrowings.

Ho added the company would start off with a small project in Kota Kinabalu in order to test the market.

"We are looking for affordable residential development and township development. "The affordable segment is always very resilient. The RM90,000 to RM400,000 price range demands are currently very strong and we expect it will remain strong for the next two years," he added.

By Bernama

New development planned for Jelutong

The thriving Penang property market has gotten off to a robust start this year with a new development planned for Jelutong.

Tambun Indah Land Berhad has proposed to acquire the entire equity of Premcourt Development Sdn Bhd, and will undertake a mixed strata development project in the area through Premcourt.

The project, with a gross development value (GDV) of RM180mil, involves a 1.69ha piece of land in Jelutong.

Tambun Indah managing director Teh Kiak Seng said the project was located “in the heart of the island” and would feature modern apartments, office suites and shoplots to meet the demand for commercial and lifestyle properties in the central business district.

“We anticipate to commence development in the fourth quarter of the year.

“Targeted completion is by the fourth quarter of 2014,” he said in a statement.

Teh said he was optimistic on the outlook of the Penang property market in light of the government’s commitment to continuously improve the infrastructure and provide incentives to attract corporations to establish and expand their facilities in the state.

He said besides Premcourt, Tambun Indah had proposed to acquire Pridaman Sdn Bhd and Ikhtiar Bitara Sdn Bhd.

“Pridaman and Ikthiar have landbanks on the mainland.

“The purchase consideration for the acquisition of all three companies is RM11.6mil which will be through internally-generated funds.

“Development projects via these companies are expected to contribute approximately RM38.7mil in pre-tax profits from 2011 to 2014,” he said.

He said the proposed acquisitions would increase the group’s GDV by RM245mil and its landbank to 96.3ha.

The layout plans for the projects in Pridaman and Ikhtiar Bitara have received the necessary approvals from the relevant authorities and work is expected to commence soon.

By The Star

Link housing estates with more roads

The authorities have been urged to build more interconnecting roads between housing estates as a means to reduce the traffic congestion on the Damansara-Puchong Highway (LDP).

Barisan Nasional chief coordinator for Puchong, Datuk Lau Yeng Peng said motorists had to use the LDP not only to get out of Puchong but also to move from one housing estate to another within Puchong.

“It would help ease the traffic problems here if there were more roads between residential areas,” he said during a meeting he initiated with LDP concessionaire Litrak at his office in Puchong to highlight the long-standing traffic woes.

“Residents coming from the back end of Puchong go through the Plaza Puchong Barat toll plaza.

“Most of the time, they get stuck in a traffic jam immediately upon exiting the toll.”

He said to avoid this, many motorists headed to the Elite Highway using the route that took them past the Proton plant.

“Unfortunately, sometimes this route too gets jammed up in the morning, especially at the traffic lights that are right before the turning into Elite Highway,” he added.

Lau, who is Puchong Gerakan division chairman, also urged the Subang Jaya Municipal Council (MPSJ) to relocate several bus stops and taxi stands along the LDP so that traffic flow would not be interrupted.

“Traffic jam is not a new problem. It has been there for so long and we do not see any positive measures taken by the state government to overcome the problem,” he said.

At the briefing, Litrak CEO Sazally Saidi pointed out that since 1999, when LDP was built and started operations, it had undertaken RM900mil worth of enhancements on the LDP.

“From the initial 40,000 vehicles per day, traffic volume has gone up to 440,000 vehicles per day. “

Of that number, he said, some 260,000 vehicles passed through the Penchala and Sunway/PJS toll plazas while 180,000 vehicles passed through the Putrajaya and the USJ/PJ toll plazas daily.

Lau said other contributing factors to the jam were not only the increase in vehicles plying the LDP but also the spillover traffic from the Federal Highway where some one million motorists ply daily.

“If the Federal Highway gets choked up in the morning, the backflow can go as far as the Sunway toll,” he said.

Sazally assured that Litrak would be upgrading LDP in Puchong by widening road shoulders and building an additional flyover alongside the existing flyover near the Puchong United club.

By The Star

MK Land records higher Q2 pre-tax profit

MK Land Holdings Bhd posted a higher pre-tax profit of RM6.019 million for the second quarter ended Dec 31, 2010 from RM3.454 million in the same quarter of 2009.

Its revenue increased to RM66.067 million compared with RM48.448 million previously.

For the first six months ended Dec 31, 2010, MK Land recorded a higher pre-tax profit of RM11.631 million compared with RM4.791 million in the corresponding period 2009.

The company's revenue, however, declined to RM127.845 million from RM129.257 million previously.

MK Land expects an improving economic climate and a resilient property market to be the key drivers for its sales growth going forward.

The company anticipates a better financial performance for the financial year ending June 30, 2011.

By Bernama

Changing the face of Putrajaya

Towering: Skyscrapers in Putrajaya as seen from a distance.

The concept of Putrajaya is slowly changing with skyscrapers being built and Perbadanan Putrajaya (PPj) said the federal administrative capital was never planned as a low-rise development.

PPj City Planning Department director Omairi Hashim said Putrajaya was planned as a compact city especially on the Core Island where most of the ministries and goverment departments were located.

The buildings in the Core Island of Putrajaya are mostly five-storey tall.

Omairi said skyscrapers were the latest development and the masterplan was approved by the Cabinet in 1995.

“The skyline of the city along Persiaran Perdana (Boulevard) will rise to the maximum height of 40 storeys, becoming the landmark in the city,’’ he said.

He added that the development was being undertaken based on approved layout plans as set out in the Putrajaya Master Plan (PMP).

The master plan covers land use, categories of buildings, hosuing estates, mixed-use development as well green areas in Putrajaya.

Development on Core Island is based on plot ratio, gross floor area, building height and typology of each plot.

Omairi said building height was used to create an urban ambience at the Core Island.

“The PMP has always considered the ‘Flying Path’ determined by the Department of Civil Aviation and as such the buildings will be within the gazetted maximum height,’’ said Omairi.

Six skyscrapers, including four government buildings, are now being built in Precinct 4 and two in Precinct 5.

Omairi said apart from the Putrajaya Core Area, there were five main precincts which are designated as Putrajaya Core Area — Precinct 2, 3, and 4 in the Core Island and Precinct 1 and 5.

“The different height of buildings at the Central Business District (CBD), particularly along Persiaran Perdana (Boulevard) which links all the precincts on the Core Island are planned to create an interesting skyline,’’ said Omairi.

He said the building height of between 18 and 20 storeys in Precinct 2, would be scaled down to about 15 storeys in Precinct 3 and increased to a maximum of 40 at the southern Boulevard.

A long-time resident said he thought Putrajaya was meant to be unique with low-rise development.

“The tall buildings should not be along the Boulevard.

“The Putrajaya International Convention Centre (PICC) which was visible from the Prime Minister’s Office, is now partly blocked by the skyscrapers.

“The area has lost its uniqueness. Even the beauty of the Seri Gemilang bridge is lost,’’ said the resident.

He said the uniqueness of Putrajaya were the architectural buildings and the bridges and adding tall structures had defeated the purpose.

As for the Peripheral area, the approved building height for commercial development is between two and four storeys, while high-rise apartments will be allowed a maximum of 17 storeys.

By The Star

Red Carpet Boulevard designed by French architect

Dynamic: Red Carpet brings the outdoors, indoors to visitors.

In May, 500,000 Klang Valley residents and the immediate population of Kota Damansara will be in for a fresh and exciting experience when Encorp Strand launches Red Carpet Boulevard.

Inspired by the famous Champs-Elysees in Paris, Encorp Berhad’s Red Carpet Boulevard has been crafted by world-renowned French architect Nicolas Ayoub with a contemporary twist.

Its sculptured tree lines, French cafe-styled dining outlets and magnificent lights along the 800ft-long and 90ft-wide Red Carpet Boulevard are reminders of the elegant Parisian boulevard, while its glass canopy, suspended ‘flying’ red carpets above and climate-controlled environment provide a contemporary touch.

“The essence of Red Carpet Boulevard can be summed up in one word — experience. It is a versatile concept built around the experience of life and celebration, and an inspiration of Paris as an ‘emotion’ rather than a ‘city’. We can adapt this to the Malaysian culture because Red Carpet is all about the feeling of an experience,” says Ayoub.

The luxury in this landmark development is also the use of space, not just external but internal as well.

“The space at Red Carpet is dynamic rather than static. This flexibility is what we call ‘living space’, which is ideal for dining and entertainment in an urban setting. Red Carpet brings the outdoors, indoors to visitors. It is a unique embodiment of French cafe culture, combining exciting gourmet adventures with entertainment. It is a place to see and be seen, just like the Champs-Elysees!” added Ayoub.

Red Carpet Boulevard will be the longest and widest alfresco boulevard ever built in the Klang Valley, and it is poised to take its place as the most exciting dining and entertainment spot in the popular and prime “Damansara Belt” of Petaling Jaya.

The F&B outlets fronting the boulevard are second to none, providing alfresco dining and entertainment at its best. The boulevard has been designed to provide communities with a new experience in dining and entertainment. Although typically French in design and inspiration, the offerings will have an international flavour by F&B tenants offering a variety of cuisines and concepts.

A major attraction for Red Carpet Boulevard are its variety of both local and international thematic events and entertainment, which are currently being planned.

Red Carpet Boulevard is events-ready. Facilities such as state-of-the-art sound system,specially designed lighting and fibre optic cables have been seamlessly embedded for a complete ‘plug & play’ experience for those who wish to hold events such as performances, film premiers, fashion shows, product launches as well as music and cultural festivals. The entire Red Carpet area will also be equipped with high speed broadband infrastructure, offering free Wi-Fi access to its visitors.

“Red Carpet Boulevard is going to be a breath of fresh air simply because of its unique experience. What we are offering is essentially a winning combination of a complete dining and entertainment experience, which will be evident at every touch point when you first enter the Boulevard,” said Encorp’s executive chairman Datuk Seri Effendi Norwawi.

The immediate population within a 5km radius of Encorp Strand has a high average annual population growth rate, registering 10.9% between year 2000 and 2007 and it is projected to rise to over 500,000 by this year. A rapid growth of population in this area is expected due to the active residential development in this blossoming township and its surrounding neighbourhoods such as Mutiara Damansara, Taman Tun Dr Ismail, Desa Park City, Damansara Perdana, Sierramas, Valencia, Mont’ Kiara and Sri Hartamas. These communities have an above average spending power and tend to have greater expectations on quality shopping, dining, leisure and business activities.

More To Come At Encorp Strand

More components are progressing well at Encorp Strand, namely Garden Offices, the shopping mall and residences, all of which will transform this integrated development into a complete living, working, shopping, dining and entertainment experience.

Garden Office, which will be ready by 2012, is a unique vision for contemporary office space, where every unit as a corner unit and offers flexibility for both small and big business outfits. It has been designed with sky gardens on all blocks and 150-metre Skywalks, as well as green concepts and features such as rain water conservation, and natural sun shading.

The centre of attraction at Encorp Strand will be the lifestyle boutique neighbourhood shopping mall, which is expected to open in 2012. Offering the best selection of dining outlets, bistros, lounges and entertainment clubs of international standards, the European-inspired mall embodies an atmosphere that combines perfectly with the outdoor experience of the Red Carpet Boulevard.

Encorp Strand has attracted key anchor tenants for the mall. These include a cinema, bowling alley, fitness centre and grocer.

The Residences, to be built just above the shopping mall, will be the icing on the cake.

Characterised by its French architectural style, the 35-storey residential tower will exude high-end comfort, service, security and luxury with panoramic city views.

Residents will have the luxury of a complete 360 experience in their own backyard, complete with clubhouse amenities.

By The Star

Mah Sing may spend RM1b on properties

Mah Sing Group Bhd, the Malaysian developer that spent the most on land acquisitions in 2010, said it may pay more than RM1 billion (US$330 million) for new sites this year as the fastest growth in a decade spurs sales.

The developer is seeking to buy land with potential sales valued at RM7 billion to RM12 billion, managing director Leong Hoy Kum said in an interview in Kuala Lumpur yesterday. The properties, which will also include commercial buildings, will be developed in the next five to seven years.

Mah Sing is boosting acquisitions as home prices climbed 6.2 per cent to a record in the third quarter, according to government data. Mah Sing spent RM756 million buying 285 acres of land last year, more than double its 2009 investments and beating Malaysian rivals as it bet on increasing property demand with government efforts to boost economic growth.

“We have a war-chest of RM777 million to spend, land banking is part of our aggressive expansion strategy,” Leong said. “The economic outlook remains bright and consumers are more willing to buy big-ticket items like properties.”

Loans disbursed for home purchases in Malaysia rose to RM5.66 billion in December, the highest recorded in nine months, central bank data showed.

Shares of the Kuala Lumpur-based company have jumped 44 per cent this year, the best performer on the FTSE Bursa Malaysia Top 100 Index, which rose 0.9 per cent. SP Setia Bhd., Malaysia’s biggest developer by sales, climbed 6.2 per cent this year.

‘Big League’

“Mah Sing’s aggressive land-banking exercise will catapult it into the big league, making it too big for investors to ignore,” said Terence Wong, an analyst at CIMB Group Holdings Bhd., who rates the stock “outperform.” “For sales to climb over the longer term, it needs fuel to sustain that growth, which means it will have to keep expanding its land bank.”

Prime Minister Najib Razak’s government unveiled an economic transformation program in September aimed at attracting investment, including US$444 billion of programs this decade ranging from mass rail to nuclear power, led by private and government-linked companies.

Malaysia’s economy expanded 4.8 per cent last quarter, spurring full-year growth to the quickest pace in a decade and putting pressure on the central bank to take more steps to curb inflation. The central bank also placed a limit on the loan-to- value ratio for third mortgages in November, which Mah Sing said hasn’t derailed its investment plans.

“There is no property bubble yet,” Leong said. “We’re not overly concerned about inflationary pressures. Inflation is still at a level where the central bank believes is within market control.”

Mah Sing is targeting property sales to climb to between RM2 billion and RM2.5 billion this year, he said. The company sold RM1.5 billion worth of properties last year.

By Bloomberg

iProperty.com traffic hits all-time high

iProperty.com Malaysia, the number one property website in the country, hit an all-time high in traffic with more than 750,000 property hunters visiting its property website last month.

When compared with January last year, the website saw a 100 per cent jump in unique visitors, a 57 per cent increase in pageviews and an 84 per cent increase in visits.

In a statement today, the company attributed the growth to iProperty.com Malaysia's recent acquisition of ThinkProperty.com.my, the launch of the brand's local vertical property websites, PropertyGuru.com.my and Home-Guru.com.

This also include the release of innovative products such as the iPhone and iPad real estate search applications and its network of distribution partners.

iProperty.com Malaysia continued to be the favourite channel for real estate agents to advertise their properties.

Between January 2010 and January 2011, over 2,200 new real estate agents signed with the iProperty.com bringing the total to over 5,300 paying agent subscribers, a 74 per cent growth, since last year.

"Our performance in January 2011 not only marks the beginning of a great year, it is also a testament of our commitment to our customers and consumers.

"We have great plans for this year as we work to continously deliver innovative products, great service and unrivalled property hunting experience. I am confident we will continue to break even more records this year," said Country Manager Timothy Hor.

By Bernama

TM targets to provide more premises in Iskandar with HSBB

Mohd Roslan Mohd Rashidi (left) and Datuk Nur Jazlan Mohamed being briefed by Frankie Tan Kiat How (right) on the project after the agreement signing in Johor Baru.

JOHOR BARU: Telekom Malaysia Bhd (TM) plans to increase the number of premises which have access to its UniFi high-speed broadband (HSBB) service in Iskandar Malaysia this year.

Johor TM general manager Mohd Roslan Mohd Rashidi said it was looking to achieve 45,000 commercial and residential premises connected with the services by year-end from 4,500 premises now.

He said the areas of coverage would be extended from three presently to five more zones to offer wider coverage for the HSBB connectivity within Iskandar Malaysia for its customers.

The five new zones are the Johor Baru Central, Pelangi, Pasir Gudang, Skudai and Tampoi areas while the existing areas are Nusajaya, Permas Jaya and Senai.

“Last year was the pre-introduction of the services for our potential customers in Iskandar and this year we are going on the ground to push the services to them,'' Mohd Roslan told StarBiz yesterday.

He was speaking after signing a HSBB service agreement with United Malaysia Land Bhd's (UM Land) wholly-owned subsidiary Seri Alam Properties Sdn Bhd acting head Frankie Tan Kiat How for its project in Pasir Gudang.

The event was witnessed by Pulai MP Datuk Nur Jazlan Mohamed and UM Land group chief executive officer Pee Tong Lim.

Last year, TM signed similar agreements with Mudra Tropika Sdn Bhd for its housing scheme in Jalan Kolam Ayer, Johor Baru and Dynasty View Sdn Bhd for its Seri Austin project in Tebrau corridor.

“We are going to sign with 15 more developers in Iskandar Malaysia for similar services this year,'' added Mohd Roslan.

He said the company preferred to sign with developers to provide and install the HSBB connectivity for their new residential and commercial launches rather than having the system installed at the completed properties.

However, Mohd Roslan said it would not totally ignore the brown field area. The company would be selective in offering the service to such areas as it involved high cost of laying down fibre-optic cables compared to green field areas.

He said one area which required careful planning was the RM1.8bil Johor Baru city centre transformation project, where the masterplan to be unveiled in the second-quarter of the year would involve the redevelopment of Johor Baru into a vibrant city.

By The Star