SP Setia in urban renewal projects

SP Setia Bhd is riding high on the strong property market, given its vast landbank in high-growth property markets in the Klang Valley, Penang and Johor, and being a frontrunner for government land redevelopment projects.

The property group has more than 3,500 acres of undeveloped land that will last it for the next 10 years.

Three major projects planned for launch this year are the KL Eco City, which is located opposite the MidValley; Setia City in Setia Alam, Shah Alam; and Fulton Lane in Melbourne. They have a combined gross development value (GDV) of RM12.5bil.

With Permodalan Nasional Bhd as its major shareholder holding a 32.9% stake and its expertise in both niche and township developments, SP Setia is in the forefront of government land redevelopment projects.

SP Setia has been given the right to develop 40.22 acres of prime land in Bangsar in return for a new integrated health and research complex for the Health Ministry.

The proposed complex, to be known as the 1National Institute of Health (1NIH) Complex, is to be developed on 55.33 acres owned by SP Setia's wholly-owned unit, Bandar Setia Alam Sdn Bhd, in Setia Alam, Selangor.

The complex will house the various national health institutes and relevant supporting offices and research centres under the ministry's purview which are currently situated on 40.22 acres along Jalan Bangsar and other parts of Kuala Lumpur. In exchange, SP Setia will get the government land which it will redevelop into an integrated mixed residential and commercial project. It will provide the Health Ministry and the Government with a 20% share of the net profits from the redevelopment.

Based on a conservative estimated plot ratio of five times and an efficiency factor of 70%, the net saleable area is about 6.1 million sq ft, and assuming an average selling price of RM1,000 per sq ft, the project's GDV will be about RM6.1bil, according to AmResearch in a note. “Compared to status quo, this land swap is accretive because the Bangsar site has high development potential and ready end-user demand. And, the relocation of the new research complex would accelerate the maturity of Setia City, the commercial precinct in Setia Alam,” the report says.

But it says the deal falls short of consensus expectations, as SP Setia will only have a 50% stake, and the joint venture company will also have to distribute 20% of its profits to the Health Ministry.

Given its established track record in township development, SP Setia can look forward to partaking in the development of the 3,300 acre-Rubber Research Institute land in Sungei Buloh. SP Setia has been invited by the master developer, the Employees Provident Fund's unit, Kwasa Land Sdn Bhd, to submit its input for the development of the RRI land into a mixed property development with focus on affordable housing. The RRI land development, which is estimated at RM10bil, is earmarked to be the new hub of the Klang Valley.

Another project on SP Setia's plate is the urban renewal project for Cheras and Bandar Tun Razak, valued at RM2.8bil.

It has recently been picked for the redevelopment of the ageing Seri Johor, Seri Pulau Pinang and Seri Melaka low-cost apartments and the Taman Ikan Emas low-cost homes in Bandar Tun Razak, Cheras.

The project is part of the Government's urban renewal programme to inject life into decaying and ageing townwhips and slum areas in the federal capital.

The project undertaken by the Federal Territories and Urban Wellbeing Ministry and City Hall will see many old low-cost housing projects in the city being redeveloped to provide the urban poor better living conditions.

SP Setia can look forward to raking in record sales of RM3bil for the current financial year ending Oct 31, given maiden contributions from the prolific KL Eco City.

A recent note by Hwang DBS Vickers Research says SP Setia will be one of the biggest beneficiaries of the mass rapid transit project with 25% of revised net asset value (RNAV), like the KL Eco-City and Jalan Bangsar (near KL Sentral), exposed to potential interchanges.

SP Setia has been in the forefront in landbanking with four acquisitions worth RM15bil in GDV year-to-date. There could be more landbanking on the cards given its strong balance sheet.

For the second quarter ended April 30, sales hit an all-time high of RM671mil, while cumulative six-months sales amounted to RM1.41bil.

SP Setia said the result was the strongest ever, overtaking the previous highs achieved in the 2Q of financial year ended Oct 31, 2010, and six-months FY09 by 12% and 17% respectively.

Net profit for the first-half of FY11 rose 72.53% to RM154.26mil from RM89.41mil in the previous corresponding period.

Among the projects that contributed to the sales included Setia Alam and Setia Eco Park in Shah Alam, SetiaWalk in Pusat Bandar Puchong, Setia Sky Residences in Jalan Tun Razak, Bukit Indah, Setia Indah, Setia Tropika and Setia Eco Gardens in Johor Baru, Setia Pearl Island and Setia Vista in Penang.

SP Setia president and chief executive officer Tan Sri Liew Kee Sin is confident the group will meet its FY11 sales target of RM3bil based on the strong sales momentum for existing projects and the upcoming KL Eco City project in Abdullah Hukum. It is obtaining the necessary approvals in preparation for the launch of its recently secured landbank that include a 268-acre land in Cyberjaya and another two parcels measuring 259 acres and 262 acres respectively in the fast-growing Tebrau Corridor, Johor.

By The Star

Mah Sing clinches two awards

KUALA LUMPUR: Mah Sing Group Bhd was named as "The Best of Asia" at the seventh Corporate Governance Asia Recognition Awards 2011 while its group managing director Tan Sri Leong Hoy Kum won the "Asian Corporate Director Recognition Award 2011".

"We place high priority in ensuring good governance in all areas of our operations, with appropriate control in place to ensure satisfactory levels of accountability and integrity, and we are honoured by these awards," Leong said in a statement yesterday.

"The Best of Asia" Corporate Governance Asia Recognition Awards are presented to top organisations in China, Hong Kong, India, Indonesia, Malaysia, South Korea, the Philippines, Singapore, Taiwan and Thailand.

Among the winning criteria include a publicly-acclaimed track record for corporate governance, disclosure, transparency and investors relations practices.

By Bernama

Educate, monitor before appreciating communicative devices

Although the world is growing smaller and converging into a big global village with the rapid advancement of technology and science, the paradox is that instead of life becoming simpler, things are actually growing more complex and complicated.

Rightly speaking, scientific and technological advancement should simplify things for the human race, but the opposite seems to be true. We are now saddled with more gadgets and tools that can complicate things if we are not careful.

The advent of the Internet, personal computer (PC) and tacky devices like the iPod and iPad, is revolutionising the way people communicate with each other, and these inventions are fast becoming tools that people can't do without.

Staying connected has taken a hold on the young and old alike, and it has been made easier through social networking sites such as Facebook and Twitter.

Of course, the prowess of the Internet has its advantages that include faster speed of communication at lower cost and the ability to share huge chunks of information. Instead of having to build buildings, even teaching and learning can be conducted online through virtual e-classes and programmes. Students and lecturers can be thousands of miles apart but they are brought together in these e-classes.

The Internet is also a superb business tool that has greatly lowered the cost of doing business. Many e-businesses that do not need shop fronts (such as consultancy and even some merchandise trading) have taken off successfully, and its full potential is yet to be reaped.

But there are also the downsides brought on by the Internet and social networking sites that we need to be wary of.

One of the most vulnerable groups is the young, especially children, who can easily fall prey to and be too trusting of what they see and read over the Internet.

Many youngsters have become overly attached to their computer, blackberry, and lately the iPod and iPad be it to play computer games or to chat on-line. As a result, there are now special clinics to rehabilitate or cure these people of their addiction. This goes to show the computer addiction problem is becoming quite prevalent.

Even the adults are not spared and it has been reported that many have become addicted to social networking sites to the extent that it hampers their performance at work. As a result, some employers have barred these sites to prevent misuse.

Once a safe haven, the home has somehow been “intruded” by the presence of prying cameras and listening devices attached to the PC. I read in a recent report that these social networking sites are one of the biggest spy machines that have invaded our homes today.

While these “invisible visitors” may not be physically present in our houses, they are omnipresent and are able to see what's going on around the house if the logged on computer and camera are unwisely left on.

It is necessary to remind all the family members to be wary of who they befriend and chat with online, as they may be too trusting and believe everything they are told or read on the cyber realm.

They should be reminded that the physical and cyber realms are actually two different worlds, and that they should be aware of the risk of talking to strangers in cyber space. This is because there are people who have no qualms about assuming false identities with the intention to mislead or cheat others.

There have been quite a number of cases of people, especially young girls, who have gone missing and could still not be traced after befriending people on these social websites.

One of the ways to prevent misuse of the computer is to have a common area for the home PCs where the elders can watch over the younger ones when they are logged on and there must be an agreed time frame for online chats or games.

Regular interaction among family members to find out what each other is up to will also prevent over dependence on “cyber friends”.

Reminiscing about the pre-Internet days, I believe life was much simpler when we (those born in the baby boomergeneration) were younger. For example, for recreation, we had very limited choices it was either playing masak-masak, heading off to Gurney Drive or Batu Ferringhi beaches (for Penangites) for a picnic or swim, watching a movie in the cinema or studying at home or in the library.

The television set was still in black and white, and the personal computer had not yet made its presence felt. It was still an expensive gadget and not easily available.

Life was certainly simpler with less distractions, and I'm sure our parents had a much easier time despite having a larger brood to care for.

These days, although most families opt to have fewer children, it does not mean life has become simpler. Of course, the growing materialism and consumerism in the world today may have contributed to the insatiable greed among some sections of the populace, as the list of their “wants” grows longer. So is it a wonder things have become more complicated?

Deputy news editor Angie Ng likes these words of wisdom from Chief Seattle: Man did not weave the web of life, he is merely a strand in it. Whatever he does to the web, he does to himself.

By The Star

First MRT line likely to cost RM20bil

KUALA LUMPUR: Although the actual cost of the country’s first mass rapid transit (MRT) system will be disclosed in September due to a 50% reduction in land acquisition and other tweaks to the initial alignment, estimates have put the price tag for the first of three lines at around RM20bil.

Land Public Transport Commission (SPAD) CEO Mohd Nur Kamal said more time was needed to finalise the cost as the revised alignment was only recently approved given the changes to accommodate public feedback.

“We have done a lot of changes as we are responsive to public feedback and are looking at August or September to nail down the actual cost,” he told reporters after the launching of the MRT, dubbed My Rapid Transit, which was officiated by Prime Minister Datuk Seri Najib Tun Razak yesterday.

The launch revealed the final alignment of the 51km Sungai Buloh-Kajang MRT line, of which 9.5km will be underground. The line will have 31 stations.

The final alignment not only reduced land acquisition cost, has led to better integration with existing rail network and reduced the number of stations but has become more cost effective than the initial alignment.

A SPAD official said the new alignment would run across 70% of road reserve land. The remaining 30% of the line will traverse private land which will be acquired to build the tracks.

“The tweaking of the alignment concentrates mainly on Taman Tun Dr Ismail, Bukit Bintang, Cheras and Kajang,” said the official.

An analyst familiar with the matter estimated the cost of the first MRT line could be around RM20bil. “And the cost of the underground works may be RM7bil to RM8bil,” he said.

The MRT’s project delivery partner (PDP), MMC-Gamuda Joint Venture Sdn Bhd, in which Gamuda Bhd and MMC Corp Bhd hold equal shareholdings, will be responsible for managing the project and its cost.

The analyst that was present at the event was also surprised that the remaining two lines were still under study.

The initial joint-proposal by MMC-Gamuda called for three MRT lines, including one circle line to be built at a then price tag of RM36.6bil.

“We need to see the whole picture and integration. But, the cost of the three lines that was quoted in 2009, could have ballooned up to a total of RM50bil by now, considering the increase in construction raw material prices,” he said.

It was reported the Government might plan to sell as much as RM30bil Islamic bonds under a programme to help finance the MRT. A special financing vehicle would be formed by the Government to raise the funds which would be used for the country’s biggest infrastructure project to date.

Meanwhile, Najib foresaw that the MRT would improve existing real estate value and should be a catalyst to new property development adjacent to the MRT line.

“It is estimated that new real estate development along the line could reach as much as RM15bil to be completed in a decade.

“Additionally, gross national income (GNI) of about RM3bil is expected to be churned out based on the 20% increase in gross real estate value in terms of commercial and residential property in the 1.2 million sq ft of area in the radius of 0.5km to 1km from the MRT line in 10 years time,” he said in his speech at the launching.

Residential and commercial property earmarked for development along the MRT lines are located in Cochrane, Rubber Research Institute land in Sungai Buloh, Menara Warisan as well as Bandar Malaysia Sg Besi.

Also, Najib added that the GNI derived from the construction works of the MRT was expected to be RM3bil to RM4bil annually starting from this year to 2020.

By The Star

Land deal to boost i-City's gross value to RM3b

SHAH ALAM: I-Berhad, an integrated information, communications and technology-based developer, expects the gross development value (GDV) of its Shah Alam iconic property development, i-City, to swell to RM3 billion, with the acquisition of additional 12ha of land from the Selangor state government.

The company signed a management and development agreement with the state government and Shah Alam City Council (MBSA) yesterday.

The agreement will position i-City, also known as "City of Digital Lights", as the world stage for international investors, tourists and events.

I-Berhad chief executive officer Datuk Eu Hong Chew said under the agreement, the state will grant i-City a temporary occupation licence for the 12ha of the neighbouring land so that it can be landscaped as well as used as a car park.

"Secondly, from a development perspective, the plot ratio in i-City can be increased from 1:3 currently to 1:5.

"Thus, the increase in the plot ratio will mean the GDV of i-City can now be increased from RM2 billion to RM3 billion," he told Business Times on the sidelines of the signing of the agreement, witnessed by Selangor Menteri Besar Tan Sri Abdul Khalid Ibrahim.

At the signing, the state government was represented by State Secretary Datuk Mohammed Khusrin Munawi and MBSA by Shah Alam Mayor Datuk Mohd Jaafar Mohd Atan, while Eu signed on behalf of i-City.

Eu said the agreement is in line with the state government's vision for i-City to be the catalyst in making Shah Alam an international city to attract both knowledge workers as well as tourists.

"i-City has already been certified as a MSC (Multimedia Super Corridor) Malaysia Cybercentre by the Science, Technology and Innovation Ministry and endorsed by the Tourism Ministry. The agreement signed today (yesterday) builds on top of these certifications," he said.

Under the agreement, i-City would be permitted to manage the whole 28.8ha land as a gated and guarded zone.

On the progress of i-City, Eu said with the additional acreage, the company expects to complete the iconic property development within 15 to 20 years, from 10 years initially.

By Business Times

Star project in Nilai

Well received: Choo (left) showing the scaled-down version of the Starz Valley.

Tagged with a glamourous name, interested house buyers are flocking to see the newly launched Starz Valley project in Nilai.

The freehold mixed development by Golden Plateau Sdn Bhd may be the company’s debut project but has sold out its commercial units in just a day.

All 38 units of its shoplots priced between RM600,000 and RM1.1mil each were snapped up during its launch and 104 units of Soho offices were sold out within a month.

Located oppposite Inti International University, the project encompasses commercial lots, a five-storey boutique hotel, a sports centre and four blocks of serviced apartments.

Company managing director Y.C. Choo said the strategic location of the project coupled with its modern design were among the main selling points for the development.

“Before embarking on the project, we conducted a detailed survey on the properties here and designed our project to meet actual demand.

“Our strategy must be working judging from the overwhelming response,” he said.

The four blocks of 13-storey serviced apartments will house 1,111 units with the smallest unit (studio) measuring 290sq ft and the largest (three-room) measuring 1,018sq ft.

The apartments are priced between RM109,000 and RM320,000 for the first block.

The serviced apartments which will have a community hall, swimming pool and gym are equipped with security features including a panic button in each unit and touch card for the elevators going up to the residential floors.

The apartments also come semi-furnished with wardrobes, air-conditioning units and kitchen cabinets.

The project, which will begin construction soon, is scheduled to be completed in the next three years.

Choo said the first phase of the project will be ready by the end of 2013.

By The Star

MRCB lands good deal

Win-win deal: Construction workers at a site near the KL Sentral in Kuala Lumpur. OSK Research says the latest land deal will enable MRCB to expand its KL Sentral development projects.

PETALING JAYA: Malaysian Resources Corp Bhd (MRCB) struck a good deal, getting two plots of land in return for constructing several public infrastructure projects in Brickfields.

OSK Research in a note yesterday said that it was not entirely surprised by the news given that MRCB had previously indicated that it had targeted several parcels of prime land in Klang Valley, including Brickfields for potential land acquisition.

“We view the agreement positively as it's in line with MRCB's strategy to boost its land bank and given that the exchanged land is located near its existing developments in KL Sentral,” it said.

It believes that the latest development will enable the group to expand its KL Sentral development projects.

To recap, on July 5, Country Annexe Sdn Bhd (CASB), a 70%-subsidiary of MRCB, would be given land in Kuala Lumpur with an estimated gross development value of RM1bil for undertaking three projects in the city's Brickfields area.

MRCB told Bursa Malaysia that CASB had entered into a privatisation agreement with the Government and Syarikat Tanah dan Harta Sdn Bhd for the construction of three projects in Kuala Lumpur.

The projects consist of Little India (upgrading and beautification of Jalan Tun Sambanthan, Brickfields), Pines Bazaar (a three-storey building consisting of office space, 28 units of stalls and 140 carpark bays) and Ang Seng Development (212 units of new government Class F quarters near Jalan Ang Seng to replace the quarters at Jalan Rozario).

DMIA Sdn Bhd owns the remaining 30% stake in CASB, which was set up as a special-purpose vehicle to develop the projects in return for two pieces of land at the intersection of Lorong Chan Ah Tong and Jalan Tun Sambanthan.

The 214,630 sq ft land is valued at RM601 per sq ft or RM129mil.

MRCB said a proposed mixed property development on the land represented a good investment opportunity to further strengthen the group's income in future.

Attempt to get comments from MRCB was unfruitful yesterday after it told StarBiz that its chief executive officer Datuk Mohamed Razeek Hussain was currently in overseas.

In June last year, the RM36.6mil Little India project was jointly awarded to MRCB and DMIA by the Government on a design, build, finance and transfer basis. It was completed last October.

To support the Government's initiatives for Greater Kuala Lumpur, the project was later expanded to include Pines Bazaar and Ang Seng Development.

By The Star

Bolton’s move should remove share overhang

PETALING JAYA: Property firm Bolton Bhd's placement of 21% of its shares on Tuesday to local and foreign funds, including to the company's major shareholders, should remove share overhang and help narrow the company's large discount to its real net asset value of 62%.

In a report, Hwang DBS said it was positive on the share-placement exercise because of this.

Bolton's large discount to RNAV stood at 62% versus the RNAV of other small mid-cap developers which was at an average of 50%, the research house said yesterday.

The company declined to comment who the buyers and sellers of the shares were when contacted.

The off-market deals, 13 in all, were done at RM1 per share, according to information on Bursa Malaysia.

According to Bolton's 2010 annual report, executive chairman Datuk Mohamed Azman Yahya held a 18.8% stake in the company via Gajahrimau Capital Sdn Bhd while Lee Choong Lim @ Lee Ting Fook had a 23.52% stake via Forum Equity Sdn Bhd as at mid-year last year.

Recent filings with Bursa Malaysia revealed that Lim Hooi Teik, a substantial shareholder of the company, raised his direct and indirect stake to 9.47% from 8.93% earlier in the year.

At the close yesterday, Bolton shares finished 5 sen higher at RM1.08.

By The Star

Mid Valley Megamall to host India property fair

The Indian Property Investment Fair will be held on August 20 and 21 at the Mid Valley Megamall in Kuala Lumpur.

The exhibition will feature properties that vary from vacant lands, apartments, villas, and houses for sale to investors and developers in Malaysia.

It will also showcase various projects for sale at South Indian Properties at Chennai, Madurai, Tirchi, Coimbatore, Ooty, Yelagiri, Kodaikanal and Tiruvannamalai.

By Business Times

MRCB unit gets KL land for 3 projects in Brickfields

PETALING JAYA: Country Annexe Sdn Bhd (CASB), a 70% subsidiary of Malaysian Resources Corp Bhd (MRCB), will be given land in Kuala Lumpur with a potential RM1bil gross development value, in consideration for undertaking three projects in the city's Brickfields area.

In a Bursa Malaysia filing yesterday, MRCB said CASB had entered into a privatisation agreement with the Government and Syarikat Tanah dan Harta Sdn Bhd for the construction of three projects in Kuala Lumpur.

The projects consist of Little India (upgrading and beautification of Jalan Tun Sambanthan, Brickfields), Pines Bazaar (a three-storey building consisting of office space, 28 units of stalls and 140 car park bays) and Ang Seng Development (212 units of new government Class F quarters near Jalan Ang Seng to replace the quarters at Jalan Rozario).

DMIA Sdn Bhd owns the remaining 30% stake in CASB, which was set up as a special purpose vehicle to develop the projects in return for two pieces of land at the intersection of Lorong Chan Ah Tong and Jalan Tun Sambanthan.

The land is 214,630 sq ft in total, and is valued at RM601 per sq ft or RM129mil in total.

MRCB said a proposed mixed property development on the two pieces of land represents a good investment opportunity to further strengthen the future income of the group.

To recap, in June last year, the RM36.6mil Little India project was jointly awarded to MRCB and DMIA by the Government on a design, build, finance and transfer basis. It was completed last October.

To support the Government's initiatives for Greater Kuala Lumpur, the project was later expanded to include Pines Bazaar and Ang Seng Development.

By The Star

MRCB inks pact for construction work in exchange for land

KUALA LUMPUR: Malaysian Resources Corp Bhd (MRCB) has signed a privatisation deal with the government and Syarikat Tanah dan Harta Sdn Bhd to carry out government construction work in return for land.

Its 70 per cent-unit Country Annexe Sdn Bhd (CASB) will carry out three construction projects valued at RM128.7 million, MRCB said in a statement to Bursa Malaysia.

The projects are Little India upgrading works in Brickfields, the construction of Pines Bazaar, a three-storey building consisting of office space and 28 units of stalls and Ang Seng Development which involves the construction of 212 units of new government Class F quarters to replace the government quarters at Jalan Rozario, Kuala Lumpur.

In return, CASB will receive two pieces of land at the intersection of Lorong Chan Ah Tong and Jalan Tun Sambanthan, measuring 14,297 square metres and 5,642.71 sq m.

The land is valued at some RM601 per square feet. CASB will have the opportunity to develop the exchange land into a mixed property development.

The estimated gross development value of the mixed property development on that land is some RM1 billion.

CASB is a 70:30 special purpose vehicle between MRCB and DMIA Sdn Bhd to construct the projects. DMIA is principally engaged in construction and property development activities.

It did not say who the owners of DMIA or Syarikat Tanah were.

By Business Times

Strong demand drives up HDB flat prices

SINGAPORE: Housing Development Board (HDB) flat prices in the second quarter rose at their fastest pace since the third quarter of last year.

According to preliminary estimates, the Housing Board resale price index in the second quarter rose 2.9% to a fresh record from the previous quarter.

Resale flat prices in the first three months of the year rose 1.6% in comparison. Prices of private homes, on the other hand, increased at a slower pace in the second quarter.

The 1.9% gain in the private residential property price index is the seventh consecutive quarter in which the rate of increase has fallen. The data is mostly based on transaction prices in caveats lodged during the first 10 weeks of the quarter.

Taken together, the emerging picture is that of home buyers flocking to buy HDB flats and shunning pricier private homes.

A recent report by Goldman Sachs showed that the price gap between mass market private homes and HDB flats has widened to a record making it harder than ever for aspiring HDB upgraders to buy a private home.

Analysts noted that HDB flats remained affordable despite public housing prices showing a sharper rise compared with private housing.

“This is because private property prices, in particular mass market condo prices, have increased beyond the reach of many HDB dwellers who had intended to upgrade,” said ERA Realty key executive Eugene Lim.

Four rounds of cooling measures since September 2009 including lowering the loan quantum to 60% for borrowers with more than one outstanding housing loan and uncertainties in the global economy have done much to keep a lid on price increases for private homes.

But it is a different story for HDB flats.

First timers, HDB upgraders, private property owners who downgraded to public housing and permanent residents have stoked demand for HDB flats.

Although HDB has rolled out new build-to-order flats in record numbers about 25,000 new flats will be offered for sale this year the fresh supply will take time to filter down to the market.

By The Straits Times

S’pore halts DBSS land sales, reviews scheme

SINGAPORE: The sale of land for Design, Build and Sell Scheme (DBSS) projects has been put on hold while the government carries out a review, said National Development Minister Khaw Boon Wan.

But developers that clinched sites last year would launch their projects as scheduled in the next few months, he added, noting that “these are old tenders beyond my control”.

Khaw made these points on his official Facebook page over the weekend in response to a member of the public who called for the scheme to be scrapped in the wake of high asking prices at a Tampines project called Centrale 8.

The developer, Sim Lian Group, initially estimated prices at S$880,000 for five-room units but later revised them to S$778,000 after a public uproar.

on Monday, the Ministry of National Development said that pending the results of the review, the Housing Board would not proceed with the sale of a DBSS site in Bendemeer slated for later this month.

Checks with Housing and Development Board's (HDB) site revealed that the sale of a site in Sengkang expected to yield 790 units is still ongoing, with a July 20 deadline.

DBSS was rolled out six years ago to give private developers a chance to participate in the public housing market and to introduce more building and design innovations in such housing.

Since then, 13 sites have been awarded and 5,500 flats have been built and sold.

DBSS flats make up less than 1% of the total HDB stock.

Analysts say the current review is timely, given the changing housing landscape. Recent flash estimates from HDB revealed that resale flat prices jumped 2.9% from the first quarter of this year while data from major real-estate firms put the median cash premium paid above a flat's valuation at about S$30,000, an almost 50% increase.

PropNex chief executive Mohamed Ismail noted that when DBSS kicked off in 2005, the market was in the doldrums and there was a surplus of public housing.

“The scenario now has changed with soaring prices,” he said, adding that DBSS flats were in demand because most were in mature estates or central locations.

Chesterton Suntec International research and consultancy director Colin Tan said if the objectives were to inject variety and engage the private sector and smaller contractors, “then perhaps the sites should be in newer towns which are less in demand”.

By The Straits Times

China H1 residential land cost 13% lower

BEIJING: China's land market cooled in the first half, with transactions and prices falling after a spate of government measures to curb housing inflation, a private data provider said yesterday.

Average land cost for residential use in 130 cities dropped 13% in the January-June period from a year earlier to 1,451 yuan (US$225) per sq m, the China Real Estate Index System (CREIS) said.

The private data house, which is affiliated to Soufun, the country's largest online real estate firm, also said that transactions of residential land fell 6% in the first six months from a year earlier to 162 million sq m.

The lower prices and slack transactions discouraged local governments to sell their land.

Land supply for residential use declined by 15% in the first half from the same period of 2010 to 195 million sq m, despite a quickened pace in June, the CREIS said.

By Reuters

London luxury home prices reach record high

LONDON: The price of a luxury home in central London can jump as much as £3,000 (RM14,490) a sq ft with the help of a pair of white gloves costing a few pounds.

Houses and apartments described as luxury or prime in the UK capital can fetch from £1,000 (RM4,830) a sq ft to more than £4,000 (RM19,320). The widening disparity prompted property broker Knight Frank LLP to define the touches like a white-gloved doorman that separate truly elite from merely prime.

Luxury-home values have rebounded faster than those for other London properties, reaching a record last month, as the pound’s weakness attracted overseas purchasers. Knight Frank estimates that prices for prime residences start at £2 million (RM9.66 million), though you may have to pay more for one with a wine cellar, home cinema, squash court or health spa — not to mention accommodation for the staff.

At the bottom end of Knight Frank’s five tiers of luxury, a buyer should expect no less than a 24-hour concierge team, secure underground parking and a terrace or balcony. Prices are seen increasing by £500 (RM2,415) a sq ft with amenities such as a wine cooler, slab marble and a ceiling at least 2.7m high.

“What drives value is location, but also product, views, architecture and amenity,” said Ed Lewis, director of new development sales at Savills plc.

Six apartments at One Hyde Park, the luxury-condominium complex in the affluent Knightsbridge neighbourhood, sold for an average of £6,000 (RM28,980) a sq ft last year.
That includes a view of the west London park, service from the Mandarin Oriental hotel next door and hand-painted silk wallpaper.

A one-bedroom duplex in the development went for £9.85 million (RM45.58 million), according to the Land Registry.

“Luxury isn’t enough,” said Stephan Miles-Brown, Knight Frank’s head of residential development. “People using words like prime, super-prime and uber-prime are looking for ways to redefine the word luxury.”

Having a health club, resident’s wine cellar and screening room with general-release movies helps push prices into the £3,000-a-sq-ft bracket. Add £500 for a limousine service, a Gaggenau kitchen and a squash court.

Luxury properties in the city costing an average of £3.7 million (RM17.87 million) rose 8.1 per cent in June from a year earlier, Knight Frank said, pushing its Prime Central London Index to a record.

By Bloomberg

Naza TTDI to launch high-rise luxury homes

NAZA TTDI Sdn Bhd, the property development arm of the Naza Group is launching three high-rise luxury residential towers in Kuala Lumpur, worth more than RM1 billion by the year-end.



Group managing director SM Faliq SM Nasimuddin told Business Times that it will launch one block with more than 50 floors at the company’s RM4 billion Platinum Park development in Kuala Lumpur.

This will be the first residential tower at the Platinum Park, currently the largest luxury development in Kuala Lumpur.

At Platinum Park, three buildings are currently under construction. They include two 50-storey office towers, each to house the new headquarters of Felda Group and Naza Group, and the 38-storey Tabung Haji tower.

The second residential project featuring twin towers, retail and food outlets on a 0.8 hectare is located near embassies such as the Singapore High Commission on Jalan Tun Razak.

The indicative selling price for each unit at the two residential towers would be more than RM1,600 per sq ft, based on the current market price, Faliq said.

The third residential project comprising 30 floors will be developed on a 0.4ha site in Taman Tun Dr Ismail, or near the Damansara Specialist Hospital.

Based on prices of residential properties within the vicinity such as Glomac Damansara and Tropics Serviced Apartment above the Tropicana Mall, Naza TTDI may sell the units at more than RM750 psf.

Faliq said local and foreign investors from the Middle East, Europe, Singapore and Hong Kong have approached the company to take up individual units and buy en bloc.

The projects are designed to attract foreign investors, in line with the company’s plan to build its brand and venture overseas to build townships and mixed developments.

Faliq had said in March that it plans to launch 18 new projects this year worth RM1.6 billion and achieve a turnover of RM1 billion for fiscal 2011.

But the company is most likely to surpass RM2 billion, being the value of new launches, with the three residential projects.

By Business Times

Last lifeline for UDA

Kuala Lumpur: UDA Holdings Bhd’s survival now rests on the Ministry of Finance’s (MOF) final decision on the joint-venture partner for UDA’s RM6 billion Pudu Jail redevelopment project.



Under fire over the last few weeks, UDA’s chairman Datuk Nur Jazlan Mohamed stressed that the Pudu Jail development is the last lifeline of the group that has RM900 million debt and RM90 million in cash.

“I proposed three solutions to the government. To pardon UDA’s debt, to close down this company altogether or to allow us to work with a reliable partner because we cannot afford to fail in this project,” he said in an interview last week.

The company has appealed to the government to waive its RM414.3 million loan to Khazanah Nasional Bhd and reschedule payment of another RM385.2 million Treasury Loan.

“Even if the loan is pardoned, it still does not solve our problems. We need money to sustain the group and to further expand,” said Jazlan.

Although UDA has assets worth RM2 billion, its annual operating cash flow is about RM60 million a year. Its cash reserve is also falling from RM125 million in 2009 to about RM90 million now.

UDA has come under attack for allegedly abandoning the Bumiputera agenda after it chose not to appoint local joint-venture turnkey investors for the proposed project.

But Jazlan rebutted that there are no Bumiputera companies that are financially capable to take on the project in the first place.

“Even if there is, like AZRB, it did not bid for the project knowing well the financial risk involved. If UDA is financially capable, we would have undertaken the project on our own,” he added.

The proposed joint-venture partner would have to spend an estimated RM600 million to construct a retail mall complex and a public transportation hub that can house 180 buses.

The proposed bus terminal is estimated to bring in between 100,000 and 120,000 people daily. This would help boost UDA’s income via retail space rentals and car-park operations at the new complex.

While the ownership of the complex belongs to UDA, the cost to build it will be borne entirely by the partner.
Under the joint-venture term, the partner is only free to build offices, residential and hotel after it has completed the main retail mall, after which it can sell or lease the building.

“The MOF needs to make a decision on what is best for UDA. Once the retail mall is completed, it can give a recurring income of about RM300 million that can definitely help UDA pay its debt and move forward,” he urged.

“UDA is banking on the Pudu Jail redevelopment to stabilise the company. I hope the government won’t give in to the pressure groups and make a sound decision with UDA’s interest at heart,” he said.

“In this case, the Bumiputera contractor issue is secondary. UDA’s long-term sustainability is foremost,” he reiterated.

Renamed the Bukit Bintang City Centre (BBCC) development, UDA submitted the names of its preferred joint-venture partner to MOF last month.

It was earlier reported hat only one out of 11 foreign and local companies bidding for the BBCC project was a fully-owned Bumiputera company.

By Business Times

Scope of MRCB’s green project to clean up KL rivers yet to be known

PETALING JAYA: The exact scope of Malaysia Resources Corp Bhd (MRCB)'s involvement in the much-anticipated River of Life project, which aims to revitalise and transform the city's dirty rivers, is yet to be made known.

OSK Research said as a result of that, it was unable to estimate the financial impact of the project on MRCB. “Nevertheless, we believe the project will provide a sizeable future earnings enhancement to MRCB. Apart from becoming the project delivery partner (PDP) with Ekovest Bhd, we do not rule out the possibility of MRCB being appointed one of the contractors to undertake the river cleaning project,” it said in a report yesterday.

MRCB declined to comment on its involvement in the project when contacted by StarBiz yesterday.

Last Friday, Prime Minister Datuk Seri Najib Tun Razak launched the project which sought to transform the Klang and Gombak rivers into iconic waterfronts on par with waterways in cities like Amsterdam, London, Melbourne and Paris by 2020.

The RM4bil project is divided into three parts river cleaning, which would involve a 110km stretch along the Klang river basin; river beautification along a 10.7km stretch by the Klang and Gombak river corridor including pedestrian walkways; and corridor development.

OSK Research in earlier news reports stated that RM3bil had been allocated for the clean-up of the rivers with the balance for beautification works.

MRCB and Ekovest had told Bursa Malaysia in late February that the EkovestMRCB joint-venture (JV) had received a letter of intent (LOI) from the Government via Datuk Bandar Kuala Lumpur for the River of Life project.

The LOI, dated Feb 22, indicated the intention of the Government to obtain the services of the Ekovest-MRCB JV as the PDP for the project.

The River of Life project is an Entry Point Project identified in the Greater Kuala Lumpur/Klang Valley National Key Economic Area under the Economic Transformation Programme.

By The Star

Prime Minister launches 1Malaysia Housing Programme phase one

Prime Minister Datuk Seri Najib Tun Razak looking at a model at the launch of the 1Malaysia Housing Programme in Putrajaya today. Look on are Minister of Federal Territories and Urban Well-being Datuk Raja Nong Chik Zainal Abidin and Minister in the Prime Minister's Department Tan Sri Nor Mohamed Yakcop(extreme right). - Starpic by Mohd Sahar Misni

PUTRAJAYA: Prime Minister Datuk Seri Najib Tun Razak today launched phase one of the 1Malaysia Housing Programme (PR1MA) which involves the construction of 42,000 houses on 20 strategic sites.

He said eight projects were expected to commence this year and in 2012 on the 20 sites which had been identified in the Klang Valley, Rawang and Seremban.

He said PR1MA was specifically for moderate-income Malaysians earning not more than RM6,000 monthly regardless whether they work with the government, the private sector or self-employed.

"The government is aware of difficulties faced by the moderate-income group who cannot afford to purchase high-priced houses but at the same time not eligible to be considered for the existing low-cost public housing programme.

"The implementation of PR1MA will be of help towards achieving the National Housing Policy's objective to provide sufficient, comfortable, quality and affordable housing," he said when launching PR1MA's first site at Presint 11 here.

The first PR1MA scheme in Presint 11 provides 560 apartment units on 7.6 acres of land.

The prime minister said that under the PR1MA scheme, each unit would be sold between RM150,000 and RM300,000 depending on location and size, and the size of each unit would be between 800 and 1,400 square feet with three bedrooms and two bathrooms.

"The applicants must be first time buyers for the PR1MA scheme and need to occupy the house and they can obtain loan up to 105 per cent from selected financial institutions with a payback period up to 30 years," he said.

Najib who is Finance Minister said that to prevent speculative activities among buyers whose intention was to sell for immediate profits, PR1MA house buyers were not allowed to sell the house within 10 years.

"The government's real goal in implementing the programme is to see the people enjoy better lives by owning their own houses and not to give room for some buyers raking in gains from speculative activities," he said.

By Bernama

Mega multi-billion ringgit development project for Desaru

The 1.7km single-plane cable-styled bridge across Sungai Johor.

JOHOR BARU: The Government's investment arm, Khazanah Nasional Bhd, will unveil a multi-billion ringgit development plan for Desaru this year.

Sources told StarBiz Prime Minister Datuk Seri Najib Tun Razak is expected to launch the project in Desaru either in the third or fourth quarter.

The project will be undertaken by Khazanah's wholly-owned subsidiary Desaru Development Corp Sdn Bhd (DDC) which it acquired in 2010, inclusive of the latter's 1,618ha.

In the pipeline for the development is the building of two international class hotels to be managed by two of the world's renowned hotel management companies and a world-class golf course.

There will also be a theme park incorporating tropical, eco-adventure and water features and a convention centre to cater to the meeting, incentive, convention and exhibition segment.

“The Prime Minster will also declare Desaru as the leisure and tourism region for Johor at the unveiling of the development plan,'' said sources.

Khazanah's objective is to turn Desaru, on the eastern coast of Johor, into what Nusa Dua in Bali is now. Nusa Dua is known as an enclave for large international resorts in southeastern Bali.

Work on phase one of the development project will take place at the sites of the Desaru Resort Golden Beach Hotel, Desaru Holiday Chalet and Desaru Golf and Country Club.

A check by StarBiz to the three said properties recently showed that they have ceased operations and entrances to the premises were cordoned and parts of the structures have been pulled down.

Sources said there were even suggestions made by certain parties in Johor to the Government to include Desaru as part of Iskandar Malaysia economic region since Khazanah took over DDC.

Khazanah is developing Iskandar Malaysia's Nusajaya, one of the five flagship development zones in the country's first economic region via its controlled entity UEM Land Holdings Bhd.

“However, the Government feels Khazanah should focus on the leisure and tourism sector in its development agenda for Desaru instead of multiple sectors,'' said the sources.

Sources said Khazanah's role is to attract local and foreign investors to Desaru and they can either undertake the projects privately or on a joint-basis with Khazanah.

Sources said the development of Desaru would also complement the US$20bil integrated downstream oil and gas complex in Pengerang by Petronas in Johor's southeast region.

Dubbed Rapid or Refinery and Petrochemical Integrated Development, the project is aimed at building something larger than Kertih.

Workers in the oil and gas-related industry at Rapid, including expatriates and their family, would need to unwind and Desaru, just a short distance away from Pengerang, is the perfect place for them to do so.

The opening of the last 27km stretch of the 77km Senai-Pasir Gudang-Desaru Expressway early this month also reduces travelling time from Johor Baru to Desaru from two hours to about 45 minutes.

The RM1.4bil expressway links Senai to Desaru in the eastern part of Johor and connects to Pasir Gudang at the Tanjung Langsat industrial area via the Pasir Gudang interchange.

The last stretch includes the 1.7km single-plane cable-styled bridge across Sungai Johor, one of the longest of its kind in the world with a 500m span.

By The Star

Tebrau going for high-end projects

JOHOR BARU: Tebrau Teguh Bhd is shifting its focus to high-end residential and commercial developments from low to medium cost residential projects previously.

Executive vice-chairman Johar Salim Yahaya said it was a normal progression or transition for any developer to shift its focus to development projects that provided better yields.

He said the company believed that it had made the right move after seven years of involvement and experience in the low and medium cost to medium cost residential projects.

“The move is also in tandem with the positive demand for high-end properties within Iskandar Malaysia in recent years,” Johar told StarBiz after the company AGM recently.

He said the long-term growth of Iskandar Malaysia would be the key contributing factor to help boost the Johor Baru property market.

Johar said the company would benefit immensely from Iskandar Malaysia as its land bank was strategically located in the main growth nodes of the growth corridor.

It has 413.53ha of undeveloped land and 12km water frontage within the Tebrau-Plentong river basin development with a net book value of RM591.93mil.

“We want to maximise our land value and return with the right product and in this respect, water frontage properties always fetch good selling prices,” said Johar.

The completion of the Eastern Dispersal Link Expressway and the Second Permas bridge within the next two years would improve connectivity and accessibility to the eastern part of Johor Baru.

Johar said the company would be launching Botanica @ Bayu Puteri in October with the gross development value of RM165mil and the project on a 4.90ha site would keep the company busy for the next six years.

The selling price of the apartment unit for the first of the four apartment towers with the built up area between 1,300 and 2,600 sq ft would be at RM300 per sq ft.

For the financial year ended Dec 31, 2010, Tebrau Teguh recorded RM3.63mil net profit on RM108.97mil revenue against RM13.62mil and RM35.45mil respectively for the FY2009.

By The Star

Stemlife arm acquires land for RM6.8m

Stemlife Bhd (SLB)'s unit, Stemlife Properties Sdn Bhd (SL Prop) has acquired a vacant land, located within the Bukit Jelutong township in Damansara, Selangor from Mestika Bistari Sdn Bhd for RM6.79 million.

In a filing to Bursa Malaysia today, SLB said the purchase of the land, about 59,078 sq feet in size, will be funded by proceeds from the company's Initial Public Offering and internally generated funds.

The acquisition will enable the group, which is in the business of stem cell banking and regenerative medicine, to expand its laboratory facilities, it added.

By Bernama

Property sector was cut to 'neutral' at RHB

Malaysia’s property sector was cut to “neutral” from “overweight” at RHB Research Institute Sdn Bhd, which said the expectation of strong property sales and earnings growth have already been factored into the share price.

“Sentiment will turn slightly negative and we expect demand starts to soften possibly next year,” Loong Kok Wen, an analyst at RHB, said in a report today.

“The timing now is appropriate to be watchful on property stocks as we are now almost two years into the upcycle.”

By Bloomberg

Landed property still available for RM500,000

The supply of newly completed residential properties in Malaysia rose only 2.2% last year, a drastic slowdown from the 3%-12% range seen since 2001.

Those with a budget of half a million ringgit can still purchase decent landed residential properties that are not too far away from the Kuala Lumpur city centre, particularly in the Ampang area.

A search through the online property listing of Metro Homes Sdn Bhd turned up several interesting possibilities including a leasehold two-storey terrace house (five-bedroom/three-bathroom, on a 22ft x 75ft lot) going for RM500,000 in Taman Sri Watan, Ampang.

Also available was a leasehold three-storey terrace house (six-room/three-bathroom, on a 1,200 sq ft lot) going for RM470,000 in Taman Muda, Ampang Jaya.

A search via StarClassifieds also turned up a two-storey terrace house (three-room/three-bathroom), said to be located near the Kelab Darul Ehsan golf course, going for RM520,000 in Taman Tun Abdul Razak, Ampang.

There are also two-storey terrace houses selling in the RM500,000 bracket on the secondary market in Pandan Indah, Kuala Lumpur and Taman Ehsan, Kepong.

The online Metro Homes listing also showed options in Petaling Jaya including a a freehold one-storey intermediate terrace house (three-room/one-bathroom, on a 1,650 sq ft lot) going for RM455,000 in SS5.

Also offered was a leasehold Merdu Idaman one-and-half storey townhouse (four-room/four-bathroom, built-up of 1,800 sq ft) going for RM500,000 in Jalan Seroja, Kayu Ara, Petaling Jaya.

Our search also turned up a partly furnished freehold two-storey terrace house (six-room/three-bathroom, on a 22ft x 85ft lot) going for RM500,000 in SS14, Subang Jaya.

A report by C H Williams Talhar & Wong (WTW) issued in March this year, noted that due to limited supply of land, the development of the landed residential sector has shifted farther away from the Kuala Lumpur city centre.

“Last year, selected areas within Seri Kembangan, Puchong, Kinrara, Kota Damansara, Kepong became the hotspot areas for landed residential housing. Gated and guarded types of landed residential properties emerged as the popular trend in the Klang Valley,” says the report.

A recent CIMB Research report pointed out that last year, bungalows in Kuala Lumpur saw a 19% increase in prices, followed by semi-Ds at 16.7%.

The CIMB Research report noted that the strong property price appreciation for all residential properties was due partly to limited new supply last year, which had increased at the slowest pace since 1997 particularly in the Klang Valley, Johor and Penang.

“The supply of newly completed residential properties in Malaysia rose only 2.2% in 2010, a drastic slowdown from the 3% to 12% range seen since 2001,” said the report.

This could be one reason for the spike in the prices of landed terrace residential units in recent years in Klang. IOI Properties recently launched freehold two-storey terrace houses (priced from RM468,800 on 22ft x 70ft lots) in Bandar Puteri, Klang.

These are still more affordable options compared with Bandar Setia Alam, Shah Alam (located off Jalan Meru, Klang) where in early June, SP Setia Bhd launched freehold two-storey cluster houses (30ft x 55ft) priced from RM568,000.

It should be noted that renovated and partially furnished freehold two-storey terrace units (22ft x 75ft) in gated and guarded precincts within Bandar Setia Alam were transacted on the secondary market in the region of RM600,000 this year.

Also, on the secondary market, freehold and basic two-storey terrace units (22ft x 75ft) can be found in Putra Heights (adjacent to Subang Jaya) for about RM500,000.

Meanwhile, those desiring bigger-sized homes can check out bungalows in Rawang.

On the Metro Homes listing was a freehold two-storey bungalow (five-room/four-bathroom, on a 3,500 sq ft lot) going for RM510,000 in Taman Sri Hijau, Rawang.

Another option was a freehold fully-furnished two-storey bungalow (five-room/four-bathroom, on a 50ft X 80ft lot) going for RM450,000 in Bandar Country Homes, Rawang.

By The Star

LBS to launch high-end RM3.5bil D’Island Residence in September

LBS Bina Group Bhd, which is working towards developing more premier property projects, will launch D’Island Residence in September.

Located on 175 acres in Puchong, the development will comprise 237 super-link houses, 298 semi-detached homes, 148 bungalows and 352 high-end condominiums as well as two blocks of commercial units.

Managing director Datuk Lim Hock San says the project, with a gross development value (GDV) of RM3.5bil, will also feature a commercial hub.

It is expected to take five to seven years to complete, he says.

Lim says D’Island Residence will be developed based on the tagline Island Retreat, Urban Charm and will promote modern lifestyle living.

It will have a clubhouse and adopt environment-friendly features like rainwater harvesting system and light-emitting diode street lights.

At the soft launch of D’Island Residence in April, 71 super-link houses worth RM83.4mil were sold. The latest launch today will feature 74 semi-detached houses priced from RM2.38mil.

Lim says the development is projected to contribute 30% to 40% to the group’s revenue and earnings over the next few years.

“We are transforming LBS to move up the value chain to focus on higher priced products,” Lim explains.

Houses priced above RM350,000 will constitute 60% of those that will be built by LBS this year. For the past five years, abouts 90% of the company’s sales came from medium-low to medium-cost homes.

Lim says LBS will adopt more green technology and designs in its projects.

As part of its long-term initiative to focus on high-end residential property market, Lim says LBS will launch a re-branding exercise later this month.

LBS has engaged alpha245, the brand communications subsidiary of Leo Burnett, to provide professional advice and guidance on the exercise, Lim says.

“LBS is also improving on customer experience and the quality of its products,” Lim adds.

Known for building affordable homes, the company plans to focus on medium-high to high-end market segment to earn better profit margins.

Lim says LBS is targeting sales to hit RM650mil this year from RM422mil last year.

He expects sales to reach RM800mil in 2012 and RM950mil in 2013.

As at May 31, the company has unbilled sales of RM527mil, which will be realised over the next two years.

Lim says LBS will continue to build affordable homes priced below RM350,000, albeit on a smaller scale.

The company has been building affordable homes at Bandar Saujana Putra, its flagship development spanning over 835 acres in Selangor.

The self-integrated township was launched in February 2003 and has a GDV of RM3bil. Sales of RM850mil have been recorded so far.

LBS has handed over about 5,000 units of various types of properties in the township.

By The Star

Taking a cue from CapitaLand

Johor Baru city skyline and the city which is located within Iskandar Malaysia economic growth corriodr will benefit from the influx of local and foreign investments.

EARLY last year, UEM Land Holdings Bhd CEO and MD Datuk Wan Abdullah Wan Ibrahim brought up the high aspirations he has for the company and Iskandar Malaysia. He told StarBizWeek that he aspires to make UEM Land Holdings Bhd a global property development outfit the likes of Singapore's CapitaLand.


UEM Land Holdings Bhd managing director/CEO Datuk Wan Abdullah Wan Ibrahim

“We hope to one day play a similar role in Khazanah be what CapitaLand is to Temasek. We recognise that we are a relatively small player compared to the highly diversified property player like CapitaLand,” Wan Ibrahim said when talking about the plans he has for southern Johor economic region.

The time for Wan Ibrahim to make that aspiration a reality has come.

Early this week, Khazanah Nasional Bhd issued a joint statement with Singapore's Temasek Holdings Pte Ltd to develop RM30bil worth of real-estate projects in Singapore and Iskandar Malaysia, which is located in the southern part of Johor. It will be the largest property joint venture between the investment arms of the two governments to date. The implications are many and far reaching.

Iskandar Malaysia is Khazanah's largest property investment, while UEM Land is its property flag bearer. UEM Land is the master developer of 9,713ha Nusajaya township. Singapore-based CapitaLand Ltd, on the other hand, is South-East Asia's largest property company in terms of market capitalisation, with sprawling assets and interest throughout the region. It is one of Temasek's portfolio company in the real estate sector. The other portfolio company in the same sector is Mapletree Investments Pte Ltd.

“Iskandar Malaysia, by itself, is essentially Johor Baru, three ports and a domestic airport. Iskandar Malaysia plus Singapore is a different equation altogether. We are then have the additional Jurong and Port of Singapore Authority and Changi International Airport, which connects to over 200 destinations worldwide, with 5,000 arrivals and departures a week by 80 international airlines. In terms of banking and services, it is second to none in the South-East Asia region,” Wan Ibrahim says.

All that connectivity and infrastructure will be there for the state of Johor to leverage on, with sovereign backing from both sides.

UEM Land will not only be working with CapitaLand, it will also be working with Mapletree Investments Pte Ltd, another portfolio company in real estate development.

Two new joint-venture companies, M+S Pte Ltd and Pulau Indah Ventures Sdn Bhd, for joint-development projects in Singapore and Iskandar Malaysia respectively, have been established.

In an e-mailed statement, Wan Abdullah says Sunrise MS Pte Ltd, UEM Land's indirect wholly-owned subsidiary has been appointed together with Mapletree Investments to oversee the development and marketing of four land parcels at Marina South, located at the heart of the financial and business cluster in Singapore's Marina Bay area with a total permissible gross floor area (GFA) of 341,000 sq m.

In addition, UEM Land and CapitaLand have been appointed to oversee the marketing and development of two land parcels in Ophir-Rochor, located between the Kampong Glam Historic District and the Beach Road Conservation Area with a total permissible GFA of 160,020 sq m.

The development at these two sites totalling 501,020 sq m, will include office, residential, hotel and retail components with a total estimated gross development value of approximately S$11bil (RM27bil), subject to design and development plans.

“We have the expertise to undertake these two projects and are thus excited to be involved in the development of these two key sites in Singapore. We view this as an excellent opportunity to familiarise ourselves with the Singapore market and regulatory framework, in line with our aspiration to expand to regional markets.

“Our appointment also allows us to establish a close working relationship with two leading real estate companies from Singapore and I view the appointments as win-win for both parties for not only are we able to learn from each other but it also provide a platform for future collaborative opportunities both in Nusajaya and elsewhere.” says Wan Ibrahim.



It is an opportunity that other Malaysian developers would give a leg and an arm for. The last several years, Malaysian developers have been making forays into the city state. These include YTL Land Bhd, sdb Properties Sdn Bhd, the Sunway group, SP Setia and GLC Sime Darby group. With land prices so steep by comparison, one has to have deep pockets and a deep confidence that there will be demand for their offerings. In the case of UEM Land, the prize literally landed on them.

RAM Holdings group chief economist Dr Yeah Kim Leng views the cooperation very positively.

He says from the economic perspective, the synergies when Khazanah and Temasek pool their resources and capital to jointly undertake investments in the two countries will enhance the potential of their investments considerably. The positive spillover arising from the collaboration will be that a lot of things will be fast tracked. There is also a greater chance for success given their sovereign backing from the respective governments.

“It will go beyond real estate to attract other business ventures to enter Iskandar. The positive effect for UEM Land and Iskandar is greater because some of Singapore's excess capacity can be relocated to the Malaysian side given our large land resources. UEM Land will be able to upscale themselves. This is one of the benefits of the JV,” says Yeah.

Despite the difference in size Iskandar Malaysia is three times the size of Singapore Yeah says there is much opportunities for UEM Land, Iskandar Malaysia. “The positive effects of this JV goes beyond property development, UEM Land. It will broaden and deepen Johor's economic base.

“Regionally, there is greater integration from the perspective of the Johor-Singapore region and well as the greater Asean region. With China and India having their huge population to generate demand, this is an opportunity and a catalyst for Malaysia and Singapore and Asean to generate demand. Malaysia will be benefit more because our absorption capacity should be greater and some of the excess capacity from Singapore can be relocated to the Malaysian side,” he says.

The positive effects of the tie-up has already spill over to the private sector. A day after the Khazanah-Temasek announcement, Eastern & Oriental Bhd (E&O) issued a statement it will be partnering both state investment arms to develop an 84ha mixed development dubbed as a wellness township in Nusajaya, Johor. E&O's unit Galaxy Prestige Sdn Bhd has set up a 50:50 joint-venture company, known as Nuri Merdu Sdn Bhd, with Pulau Indah Ventures Sdn Bhd, a 50:50 venture between Khazanah and Temasek.

E&O deputy managing director Eric Chan says in a e-mailed statement that the targeted GDV is estimated at approximately RM3bil and the actual figure will be dependant on the final masterplan. The infrastructure works have already started and targeted for completion by end of this year. Depending on market conditions, this project should last us between five and 8 years.

Says Chan: “The term wellness' is a broad concept that encompasess the well-being of the overall body, mind and spirit. Our consultants and architects are setting out to weave “wellness” elements into the masterplanned development with a view towards providing a quality lifestyle that enriches the well-being of residents.


Work on the master plan will be completed by the end of this year, the next stage is getting approval from the authorities, he says.

Prior to this, the lifestyle property developer signed a partnership agreeement with Japan's Mitsui group, Mitsui Fudosan Co Ltd, to jointly develop residential properties in Malaysia and the region.

Chan says their venture into Iskandar with Pulau Indah Ventures Sdn Bhd has no connection with the Mitsui Group but an analyst says the recent developments will be synergistic for the Penang-based developer.

“They can sell their Iskandar, Penang and Kuala Lumpur projects,” says RHB Research Institute senior property analyst Loong Kok Wen.

She says up to this point, E & O is the only Malaysian developer working with CapitaLand in Khazanah-Temasek venture.

By The Star

How Sungei Buloh became the horticultural hub of Malaysia

GARDENERS all over Malaysia know of Sungei Buloh as the hub of horticulture in Malaysia. Centred on the grounds of the old leprosy hospital and settlement, Sg Buloh has, in the past 50 years, become the place to see what is new and available in garden plants.

In the early years of the 20th century, lepers were sent into exile to islands such as Pangkor Laut and Pulau Jerejak. In 1930, the hospital and settlement in Sg Buloh were established by the government of British Malaya to serve as a central facility to treat and house leprosy patients and the island settlements were gradually closed.

The patients lived in simple one-room duplex houses with a bit of land around each house on which they could grow vegetable and keep chickens. The patients and their families had practically no prospects of getting out and re-integrating with society at large.

By the 1950s the doctors were confident that leprosy had been beaten medically, but social acceptance of cured patients posed a huge problem. Then John Wyatt-Smith of the Forest Research Institute at Kepong a few miles down the road decided to do something about it. He arranged for about 30 able-bodied men from the settlement to be employed at the institute (now Forest Reserve Institute of Malaysia or FRIM). This was no small undertaking.

No other organisation was willing to offer employment. FRIM was able to take the lead because John Wyatt-Smith was such a respected and towering figure at the institute and the forest department.

When I joined FRIM in 1964, Wyatt-Smith had just retired, but the men from Sg Buloh had become indispensable. They did all the toughest jobs, moving heavy loads, felling trees, clearing land, and looking after the plant nursery.

In the process they earned the respect of their co-workers. Those not employed by the institute were encouraged by the hospital to take up the growing of ornamental plants, to sell by the roadside in front of their houses.

Slowly overcoming their fears, people in KL began to go to Sg Buloh to buy plants, because such plants were cheap compared with elsewhere. In the 1970s, the hospital organised a garden show, in which Lam Peng Sam and I were the judges.

My nurseryman at FRIM was Mat Isa bin Bulat. He died a few months ago, by then a highly successful businessman and living in a big bungalow in Sg Buloh. As a youth in Langkawi, Mat Isa's world crashed when he was diagnosed with leprosy. Sent to Sg Buloh for treatment, he was one of those selected to work in FRIM. I was at that time making an encyclopaedic survey of fruits, seeds and seedlings of forest trees.

This work would eventually be published in two thick volumes and become the reference textbook for those in the business of raising forest trees. At that time no such business existed.

Mat Isa looked after the hundreds of species of forest trees that I was raising, learning to recognise all the plants and their names. He learnt not only their Malay names but also their scientific names (Greek and Latin to most people) from the labels I attached to the plants. Then one day, he shocked everybody by announcing his resignation to go into business.

Kuala Lumpur was taking up urban greening in a big way and there was a willingness to try new species of trees from the forests. Mat Isa saw his opportunity. He could recognise and name hundreds of species of forest trees by their local as well as their scientific names. He rented land from his neighbours to set up nurseries in Sg Buloh, and was able to supply the growing demand.

I did not know how he was progressing until some years later when he overtook me on the on road to FRIM and waved cheerily. He was driving a Mercedes while was I driving my Datsun.

On another day, while having a drink with him in a kopitiam he told me how he had just lost a large sum of money. It was stolen from his car when he had stopped for lunch after withdrawing the money to pay salaries. It was something like RM 20,000. Did you report to the police?' He merely shrugged and said “what's the point”. I guess when one has been through what Mat Isa has been through, the loss of RM 20,000 is not such a big disaster.

Over the years, Sg Buloh has become the centre of a highly innovative network of self-made men and women engaged in the horticultural business in Malaysia. This network keeps thousands of people employed, not only in Sg Buloh but also in feeder nurseries outside KL, and as far as Cameron Highlands and Muar. New flower varieties are usually first offered in Sg Buloh before they appear elsewhere.

From its original hub at the hospital area, flower nurseries have been established in the surrounding area. Sg Buloh provides a good example of how the best commercial or industrial hubs come into existence organically' through time. It requires the interaction of many individuals, in unique ways, in some unique place.

Such a hub can be easily destroyed but not easily duplicated elsewhere. As an example of how planned hubs can fall short, we have the so-called green lane' on the road from the Sg Buloh junction to the Rubber Research Institute. All along one side of the road, the land has been divided and let out to nurseries, but such nurseries are strung out for several miles, and the road has become a noisy, busy highway.

It is unpleasant to walk from one nursery to the next and dangerous to park and re-park on the roadside. It is also impossible to turn back. At the historic hospital hub, one can visit a large number of different nurseries within a small area, in peace and quiet. Now that leprosy and been beaten and its hospital relegated to history, the horticultural hub and its historical buildings, especially the one-room duplex houses, survives as a reminder of a huge human tragedy overcome by human determination. The Malaysian horticulture industry will suffer a serious setback if its Sg Buloh hub is lost.

Botanist and researcher Francis Ng is the former deputy director-general of the Forest Research Institute of Malaysia. He is now the botanical consultant to Bandar Utama City Centre Sdn Bhd and the Sarawak Biodiversity Centre.

By The Star

Malaysia-Singapore joint venture a win-win enterprise

The involvement of the Malaysian and Singaporean governments in the development of real estate in Johor and Singapore is significant in more ways than one. It is not only a move that harnesses the benefits to be reaped from real estate development in both countries; there is also the political side of it, besides the social aspect.

The following may not be the best analogy, but it does sum up the relationship between the two countries. Imagine two lads from different countries, with no political, historical and economic baggage, coming together to build sand castles on the beach. It could be a beach in Singapore or Johor.

There is healthy competition and both lads benefit from their time together. You watch how I build, and I watch how you embellish your sand castles. Who will build the most impressive sand castles? Who gets to use the spade and pail first, if there is only one spade and one pail? These are little things, but sometimes little things can blow up to big ones and friendships are lost in the process.

Iskandar Malaysia, Marina South and Ophir-Rochor are the beach. Iskandar, by itself, already has a lot of superlatives. It is the first of several economic zones being promoted by the Government and so far, it has been the most successful, although it did not have an effervescent start in 2006. At 2,217 sq km, it is three times the size of Singapore. It is Khazanah Nasional's largest property investment.

This joint venture (JV) between the two governments will make this RM30bil real estate development one of the biggest in Malaysian real estate. Khazanah, incorporated in 1993, has investments in banking, steel, power, infrastructure, real estate, telecommunicaitons, healthcare and port development. The guardians of Iskandar Malaysia could not be more illustrious. The Prime Minister and the Johor Mentri Besar are co-chairmen, and they are advised by the Iskandar Development Regional Authority (Irda).

Established in 2007, Irda is the agency that regulates, plans, promotes and strategises Iskandar Malaysia's growth. The corporate motor that drives it is Khazanah, whose managing director, Tan Sri Azman Mokhtar, sits on the Irda board. There are two other GLCs involved in Iskandar, Iskandar Investment Bhd (IIB) and Danga Bay Sdn Bhd.

Let's go across the causeway. The personalities behind Temasek is no other than Ho Ching, who is executive director and CEO. She is also the wife of Singapore premier Lee Hsien Loong. At one time, Ho Ching was ranked third among the world's 100 most powerful women. Incorporated in 1974, Temasek Holdings is an Asia investment company headquartered in Singapore. Temasek owns a diversified S$186bil portfolio as at March 31, 2010, concentrated principally in Singapore and the emerging economies.

Temasek's investment covers a broad spectrum of industries: financial services, telecommunications, media and technology, transportation and industrials, life sciences, consumer and real estate, and energy and resources. Personalities aside, Singapore is one of the most vibrant economies in South-East Asia and our closest neighbour geographically. Our political and social ties go back a long way. In terms of infrastructure, financial services, logistics, the city state is far ahead.

In terms of real estate, its properties command a higher value than Malaysia's on a per sq ft basis. Residential developments in district 9 and 10, considered as prime areas around Orchard, are priced between S$2,000 and S$3,000 per sq ft. In less prime areas, it is about S$1,200 per sq ft. Our KLCC condominium prices have not come up close to that range; it is instead very project specific, from RM1,000 to RM1,800 per sq ft. Average prices for high-end condminium development in Johor Baru is about RM500 per sq ft.

In the rental market, while the occupation cost (gross rental rate) for prime office space in KL City Centre range between RM6 and RM8 per sq ft (psf), the cost in Singapore range between RM25 and RM30 psf.

In Johor Baru, where most of the buildings are more than 10 years old, the current rental rate range from RM1.40 psf to RM3 psf. The low rental market in Johor Baru is hardly surprising as it is mainly domestic-demand driven.

Valuers are indignant when asked to compare Johor Baru prices with the city state. It is not possible to compare the two. With property prices having escalated so much in Singapore, Iskandar offers an alternative.

When the Iskandar idea was first mooted, the target audience were Singaporean investors. The city state's presence, in the form of Temasek and its portfolio companies like CapitaLand and Mapletree will lend credence and confidence to Singaporean investors, both large and small.

Assistant news editor Thean Lee Cheng hopes this JV will be another oppportunity to cement ties.

By The Star (by Thean Lee Cheng)

Magna Prima plans project in Australia

KUALA LUMPUR: Magna Prima Bhd will embark on its maiden overseas venture in Melbourne, Australia, with a proposed A$210mil development, Dynasty Living.

The company said in a statement the 25-storey, single-tower apartment project would be built on a 2,700 sq m site. It will feature 320 units, inclusive of one to three-bedroom apartments, and a two-storey penthouse.

Construction is expected to commence in the fourth quarter and the development is expected to be completed in 2013.

By Bernama

Last-minute bid blocks SunREIT from Putra Place

Kuala Lumpur: An eleventh hour court ruling yesterday barred Sunway Real Estate Investment Trust Bhd (SunREIT) from taking possession of the Putra Place located opposite Putra World Trade Centre.

The Court of Appeal yesterday granted a stay of execution on an order made by the High Court on June 28 2011 which declared SunREIT as the true owner of Putra Place. SunREIT was to move into the premises and take possession and control within 72 hours or at noon yesterday.

OSK Trustees Bhd, acting on behalf of SunREIT, had on March 30 2011 bid and won the building that had been put up for auction.

The Putra Place, which houses The Mall, an office complex, and the Legend Hotel, was auctioned off by Commerce International Merchant Bankers Bhd to recover loans given to property owner Metroplex Holdings Sdn Bhd.

Metroplex is claiming that SunREIT is not the registered owner and wants to nullify the public auction.

Following the High Court decision in favour of SunREIT, the previous owner filed a notice of appeal.

SunREIT, as the registered owner, moved into the mall and set up a management office in a vacant lot.

But it could not move into the hotel until it obtained a licence to operate the hotel. Its hotel licence was effective from yesterday.

Yesterday morning, Metroplex went to the Court of Appeal to seek a stay of the execution order granted by the lower court pending its appeal to the Court of Appeal and a July 7th date was fixed for hearing. But shortly after, SunREIT solicitors were told the matter would be heard at 4pm.

Meanwhile, SunREIT was allowed to enforce the order with the assistance of the police in case Metroplex failed to hand over the control and management of the property. Some 30-odd police personnel were at Putra Place yesterday.

At around 11.40am, some 15 Sunway management team were briefed on what the next course of action would be, including the process of entering into the hotel premises.

At around 12.20pm, reporters were informed that Metroplex's request for a stay would be heard at 4pm. Pending the decision, the management decided not to take possession of the building.

A Sunway Hotel van carrying support staff for the hotel were told to turn back. They returned later in the evening and were identified as operations personnel. This group was briefed and was on standby should there be any hotel employees (under the Legend hotel management) walking out.

The hotel had to run smoothly to avoid disruption to guests staying at the hotel. SunREIT solicitors will try and expedite the hearing of the appeal at the Court of Appeal.

By Business Times

Mah Sing banking on govt to hit RM5b target

KUALA LUMPUR: Property developer Mah Sing Group Bhd is eyeing government-related projects to help achieve its aim of RM5 billion in market capitalisation in five years.

With its track record and healthy financial standing, the company is optimistic of being able to work with the government especially in the 1,200 hectares of Rubber Research Institute Malaysia land in Sungai Buloh and the old Sungai Besi airport land, which is slated to be transformed into Bandar Malaysia.



Mah Sing's current market value stands at RM2.2 billion, having expanded tenfold from just RM189 million in 2005.

"Being a healthy company with a good track record and strong financial position, we believe the group definitely stands a good chance in these projects," managing director Tan Sri Leong Hoy Kum said after its annual general meeting yesterday.

"Mah Sing is very keen to participate in these projects via joint venture or land acquisition," he added.

To date, the group has 34 ongoing projects in the Klang Valley, Penang and Johor Baru, which yield a combined remaining gross development value and unbilled sales of RM14 billion between five and seven years.

Halfway into year 2011, the group has already achieved close to 60 per cent of this year's sales target of RM1.15 billion.

Mah Sing reported a higher net profit at RM41.2 million from RM28 million before for the first quarter ended March 31 2011. Revenue was 31 per cent higher at RM311.8 million.

Its shares closed 1 sen higher yesterday to RM2.61 with a volume of 393,700 shares.

Research firm Macquarie Equities Research has forecast that Mah Sing's earnings will grow at a compounded annual rate of 54 per cent for the financial years 2011 until 2013.

Meanwhile, Leong expects the positive sentiment in the property market to continue, riding on the favourable employment conditions and stable economic growth.

"It is a good time to buy properties now in view of the rising construction cost environment as buyers can lock in current property prices and enjoy borrowing rates, which are still very reasonable," he said.

Other factors that will help to drive the property sector include high impact projects like the MRT (mass rapid transit), young population base, high saving rates and affordable homes.

By Business Times

Mah Sing continues expanding

KUALA LUMPUR: Mah Sing Group Bhd will continue to acquire prime land and enter into joint ventures in future, to further boost its expansion strategy.

Managing director Tan Sri Leong Hoy Kum said the group was keen on both privately held and government land that could be developed as it had the track record, experience, branding and financial capacity to unlock and enhance the value.

“This year should be another good year, particularly for developers with a knack for creative product development and market strategies, among others.

“The mid to high-end residential segment in well-established locations should continue to thrive together with the mass housing market, echoing the Government's call to provide affordable housing,” he told reporters after Mah Sing's AGM here yesterday.

To date, the group has a total of 34 projects, all in Greater KL (Kuala Lumpur and Klang Valley), Penang and Johor Bharu, which yield a combined remaining gross development value (GDV) and unbilled sales of approximately RM14bil to last for five to seven years.

Leong also expected the positive sentiment for the property market to continue, riding on the favourable employment conditions and stable economic growth.

“It is a good time to buy properties now in view of the rising construction cost environment as buyers can lock in current property prices and enjoy borrowing rates, which are still very reasonable.

“Buyers should consider the developer's track record in terms of product delivery, quality, service and potential upside of the property,” he said.

He added that the group would maintain its focus on the local property market for its expansion plan.

For the first quarter ended March 31, Mah Sing reported a net profit and revenue of RM41.2mil and RM311.8mil respectively.

“We surpassed our shareholders' expectations last year and are working hard on achieving another good year in 2011 with more launches coming up in the second half,” Leong said.

Macquarie Equities Research, the latest research firm to have initiated coverage of the group, had forecast Mah Sing' earnings to grow at a compound annual growth rate of 54% over financial years 2011-2013.

In order to provide continuous value enhancement to shareholders, the group was aiming for a RM5bil market capitalisation within five years, from its present RM2.2bil.

By Bernama

Aussie apartment boost

The Australian apartment market is bucking a softening trend of the overall housing market, especially in Sydney.

Tighter Asian property rules lifting aparment market, especially Sydney

SYDNEY: Tighter government regulations introduced by some Asian countries to cool sizzling house prices are contributing to higher demand for new apartments in Australia, property services firm CB Richard Ellis said.

The Australian apartment market is bucking a softening trend of the overall housing market, especially in Sydney.

Capital growth for Sydney apartment units rose 3% in the year to May, while houses eked out only a 0.1% gain, according to research firm PRData-Rismark.

“The government tightening measures broadly across Asia are increasing the amount of interest in Australian properties,” Darien Bradshaw, executive director for CBRE's international project marketing in Asia, told Reuters yesterday.

Last year, Singapore introduced a new rule to cool property prices under which owners of Housing and Development Board (HDB) flats, or government-subsidised apartments, must stay in the property for five years before they can buy a second property.

The Chinese government has also introduced a series of new regulations including a home ownership tax to deter real estate speculation.

“There are limited options for the Chinese with money to invest other than keeping it in cash,” Bradshaw said. “So one of the options is obviously in the current climate is to look more and more overseas.”

He also said young couples who plan to raise more than one child are keen to own houses overseas, adding the targeted price range for Australian assets for Asian investors is anywhere between A$400,000 (US$430,000) and A$1,000,000.

“They've always got on the back of their mind ... where the second child may reside and live and be educated,” he said.

To capture the growing appetite for overseas assets among Asian investors, CBRE is casting wide.

Its sales teams in Hong Kong, Singapore, Kuala Lumpur and Shanghai, conducted a synchronised launch over a series of weekends to market a high-rise residential project in Chatswood, Sydney, called Metro Residences.

The efforts paid off with all 292 units offered in the first phase sold out in the first weekend in March.

Some Australian developers are positioning themselves for the Asian market.

Private property developer Meriton Group, headed by Australian billionaire Harry Triguboff, said it would develop in excess of 1,500 apartments in the next 12 months, compared with 1,000 units in the last year as demand from Chinese investors keeps growing.

“Chinese mainland residents have shown strong interest in our residential apartments with demand increasing every week,” James Sialepis, Meriton's national sales and marketing manager, said via an email.

He said 15% of Meriton's weekly sales were made to overseas Chinese, although the percentage was much higher if they include local Chinese buyers.

“Locations within a 15 km radius of the CBD that are serviced by good transport and educational facilities are in most demand,” he said.

By Reuters

SunREIT to double value of Putra Place

PETALING JAYA: Sunway Real Estate Investment Trust Bhd (SunREIT) expects to almost double the value of The Putra Place following an asset enhancement.

The Putra Place, to be renamed Sunway Putra Place, was bought via auction by OSK Trustee Bhd for RM513.95 million.

Sunway Reit Management Sdn Bhd's chief executive officer Datuk Jeffrey Ng said the value of the property could be RM1 billion as a result of a capital expenditure of between RM100 million to RM200 million to enhance the property.

"There will be additional retail space. After enhancement, the rental and occupancy rates will be more, in line with the market," Ng said.

Knight Frank had valued the property at RM576 million.

The Legend Hotel, that will be renamed Sunway Putra Hotel, enjoys an average occupancy of 60 per cent. The Mall, which will carry the name Sunway Putra Mall, has an occupancy rate of 80 per cent.

The office, that will be renamed Sunway Putra Tower is fully occupied.

Founder and chairman of Sunway Group Tan Sri Dr Jeffrey Cheah said it plans to bring back the glory that the property once had by upgrading the place to the standards associated with Bandar Sunway.

It could take anything between six months to a year to plan the upgrade and rebranding of the building.

Cheah was speaking at a briefing yesterday to clarify and explain the status of ownership of the Putra Place.

The Putra Place, which houses The Mall, an office complex, and the Legend Hotel, was auctioned off by Commerce International Merchant Bankers Bhd (CIMB) to recover loans given to property owner Metroplex Holdings Sdn Bhd.

OSK Trustees won the bid at the fourth auction held since April 2008.

Since then, there have been several parties including Metroplex which have initiated legal proceedings to block the sale.

However, on Tuesday, the High Court ruled in favour of SunREIT, stating that it is the true owner of the property and gave Metroplex 72 hours to deliver possession and control of the asset.

This means, that by noon today, SunREIT will move in as the new owner.

Nevertheless, it is understood that Metroplex has filed a notice of appeal.

Meanwhile, Cheah said he does not know the ex-owners of the building and it is merely a commercial deal. He doesn't have a personal agenda.

By Business Times