KL Metro launches RM400m Negri water homes project

SEREMBAN: Kuala Lumpur Metro Group has launched its latest water homes project called The Hibiscus Port Dickson in Pasir Panjang here.

With a gross development value of RM400 million, the project features 642 high-end resort homes with sizes ranging from 770 sq ft to 872 sq ft.

The project, which comprises three phases, started in August this year and is expected to be completed by 2014.

KL Metro managing director Datuk Low Tak Fatt said 108 units of the first phase had been sold out mainly to foreign investors from Hong Kong, Singapore, Macau and Indonesia.

"Every unit has its own swimming pool and steam sauna room. This is the luxury that other resorts do not offer," he said.

KL Metro also officially opened its five-star resort, Grand Lexis Port Dickson.

The resort offers 323 villa comprising 166 Water Homes, 118 Garden Homes and 39 Skypool Villas.

All units are based on a "water homes" concept and each has its own swimming pool.

"Grand Lexis will be the flagship of our strategic branding of true Malaysian warm hospitality," said Low.

Since its opening in November 2009 until August this year, the resort has attracted 550,000 tourists with the majority of them foreigners, mainly from the Asia-Pacific region. Low said this has contributed to the tourism sector in Negri Sembilan.

The Grand Lexis and the Lexis Port Dickson resorts, formerly known as The Legend Water Chalets, are currently under the management of KL Metro

By Business Times

Lend Lease Projects to focus on end-to-end property solutions

KUALA LUMPUR: Project management company WTW Bovis and Bovis Lend Lease has been rebranded as Lend Lease Projects.

All businesses in the Lend Lease Group throughout the world are now operating under one brand, "Lend Lease".

According to Lend Lease, it is implementing a unified brand to clear up confusion in some areas of the marketplace about who Lend Lease is and what it does. It is also to assist the group to drive maximum value from its integrated offering.

Lend Lease's managing director in Malaysia, Dinesh Nambiar, said Lend Lease has been operating in the Asian market for 38 years, and in Malaysia for 30 years.

"Our clients will still receive quality service and commitment that they usually get from us. We have made a name for ourselves in project management and design & build projects.

"Through Lend Lease's global integrated business approach, moving forward, we will be focusing on exploring end-to-end property solutions such as development, investment management, and asset & property management with our clients," he said in a statement.

Dinesh said the company's business in Malaysia is now known as Lend Lease Projects (M) Sdn Bhd.

The company expects the major rebranding activities to be completed by June next year.

He said current construction and development projects that are due to be completed before December 31 this year will retain their existing branding.

All other major projects will be rebranded from now on and all new projects will be branded to Lend Lease.

By Business Times

Exhibition aims to draw higher property transactions this year

Eager buyers: Throngs of visitors flock to Perfect Lifestyle in search of great deals, bargains and rewards.

As an excerpt from a famous English poem goes, “Home is where the heart is”, this must be especially true for home buyers in Malaysia as property transactions are expected to exceed RM100bil in values this year from RM96.77bil in the first 11 months the year before.

According to the Valuation and Property Services Department, residential sales were chalking up some 62% of that value. Home owners are in for a treat as the 13th edition of the country’s premier Home & Living exhibition lands in Kuala Lumpur in November.

Perfect Lifestyle ’11, from the creators of the popular Perfect Livin Home and Lifestyle exhibition, opens its doors again at Mid Valley Exhibition Centre Kuala Lumpur from Nov 25 to 27.

Strengthening its position as the leading provider of a hassle-free one-stop solution platform for renovations, refurbishments, decorations, home innovations and improvements, Perfect Lifestyle ’11 will aim to visitors with an even higher level of satisfaction in terms of choice, deals and ideas.

With over 300 booths from more than 100 industry-leading exhibitors, Malaysia’s foremost exhibition is sure to whet the appetite of consumers in the home and living industry.

The exhibition has been strategically positioned at the tail-end of 2011 to capture the convergence of the fundamental needs of both the exhibitors and visitors. Exhibitors will be offering handsome deals for their products and services to boost year-end sales while visitors will make the most of the attractive deals to spruce up their homes in time to usher in 2012.

It’s been an insanely fast-paced year in terms of technological innovations in the electronics and electrical world.

As such, it’s bound to be another tremendously exciting affair on all fronts as major brands such as Panasonic, LG, Sharp, Electrolux, Joven and LeBensstil continue to showcase every conceivable items one could possibly want or need in our homes as well as cutting-edge innovations of the year.

For those in search of bedding solutions, popular brands such as Napure, Tempur and SpringAir will leave everyone spoilt for choice.

“The home is where one pours in one’s heart and soul,” said the exhibition organiser CNM Events Marketing managing director Datuk Adriana Law.

A self-made entrepreneur, Law is no stranger to the joys and intricacies of home improvements as she currently splits her time between running a business and her new home that is undergoing massive renovations.

“The residential property sub-sector remains the main mover of the property market. Perfect Lifestyle’11 will have plenty in store for everyone,” said Valuation and Property Services Department director-general Datuk Abdullah Thalith Md Thani.

Apart from an assembly of top exhibitors, the organisers pack the shows with an avalanche of activities and goodies such as guaranteed gifts, exciting contests, door gifts, daily lucky draws and cooking demonstrations.

By The Star

High demand for industrial properties in Iskandar

JOHOR BARU: Property developers in Iskandar Malaysia have been urged to venture into industrial park projects due to a surge in demand for industrial properties here.

Johor executive councillor for international trade and industry Tan Kok Hong said it was timely for developers to focus on this segment apart from the residential properties area. “Johor is still strong in the manufacturing sector and it remains one of the top three destinations for foreign direct investments (FDIs) in the country,’’ he said.

Tan said this at the signing ceremony between Telekom Malaysia Bhd and UMLand Bhd’s subsidiary Dynasty View Sdn Bhd for the deployment and provision of TM’s high speed broadband (HSBB) network infrastructure and services.

Meanwhile, Newcastle University MedicineMalaysia was officially launched in EduCity Iskandar Malaysia yesterday. The 13.5-acre project is Newcastle University’s first overseas venture and is the only British Medical School recognised by the General Medical Council outside of the UK. The RM90mil campus marks the successful completion of Iskandar Investment Bhd’s first development project on the back of completed infrastructure works earlier in the year.

By The Star

Mah Sing inks MoU with Thailand's Central Pattana for potential JV

KUALA LUMPUR: Mah Sing Group Bhd today signed a memorandum of understanding (MOU) with Central Pattana Public Co. Ltd, to jointly study the potential investment of developing and managing a one million sq ft retail mall, within Icon City in Petaling Jaya, through a joint venture and or partnership.

"We believe the potential joint venture with Central Pattana will add vibrancy and further uplift the overall appeal of Icon City with the latest in retail offerings and shopping experiences of world-class standards," said Mah Sing's Group Managing Director cum Group Chief Executive, Tan Sri Leong Hoy Kum, in a statement today.

Icon City is Mah Sing's flagship integrated commercial project with an estimated gross development value of about RM3.2 billion.

The integrated development comprises shop offices, retail lots, small office versatile offices and serviced residences in Phase 1.

It also comprises the retail mall, hotel, serviced residences, boutique offices and corporate office towers in the second phase.

Central Pattana is Thailand's largest retail developer currently managing 16 shopping centres, six office buildings, two hotels and two residential projects.

By Bernama

Singapore home sales unlikely to beat last year’s record

SINGAPORE: Sales of new private homes may come close to last year's record high, but they are unlikely to surpass the figure, with global economic uncertainty affecting demand, according to experts.

Home sales for the first nine months of this year came in at a slightly more robust 12,301 units compared with 12,051 units in the same period last year.

However, experts said a slower final quarter was likely to leave the final figure below last year's tally. Developers sold a record-breaking 16,292 homes last year as rock-bottom interest rates and pent-up demand from first-timers and upgraders drove the property market to a new high.

Experts noted that low interest rates and a sound local economy should underpin private home buying demand.

However, the gloomy economic outlook has dampened market sentiment. Four rounds of cooling measures the latest in January have also removed the speculative froth.

Colliers International research and advisory director Chia Siew Chuin said the ongoing economic turmoil in the West would rein in demand to some extent. The year-end festive season and school holidays could also sideline potential buyers.

“Considering these factors, demand for new homes in the final three months of the year may come in slightly lower than that seen in the third quarter of this year,” Chia said. She expects the full-year sales volume to be between 15,000 and 16,000 units.

But Credo Real Estate research and consultancy head Ong Teck Hui noted that though cooling measures had cut demand from speculators and short-term investors, demand from genuine buyers had persisted. It was possible this year's total would be close to last year's, he added.

CB Richard Ellis Research executive director Li Hiaw Ho said the market had turned more cautious on the government's outlook of slower economic growth due to eurozone woes.

“It is unlikely that we will see the same level of take-up as the second and third quarter, even with prices remaining stable. While we expect new home sales volume this year to exceed 15,000 units, it remains to be seen whether it can surpass the record volume last year.”

Already, secondary market transactions had fallen considerably. The 3,604 units sold in the three months to Sept 30 was the lowest quarterly figure since the market recovery in mid-2009, Ong noted.

By Straits Times Singapore

Chinese home buyers not so easy to please

BEIJING: China thought it had a good plan: Bring down soaring house prices so millions of frustrated wage-earning families could afford new homes, and social harmony would follow.

However, furious protests by existing home-owners against price-cuts on new developments show that the road to real estate equilibrium is a rocky one.

For every aspiring home buyer in China thwarted by a speculative property bubble that has seen house prices in key cities jump nearly 10-fold in 10 years, an existing home-owner is anxious to see the biggest investment they're likely to ever make keep rising.

Anxiety built to anger in Shanghai on Oct 22 after Longfor Properties cut prices on the latest phase of a housing development to revive stalling sales at the site.

A mob of about 300 people smashed up the development's sales and demonstration centre, according to local media reports.

All had bought homes in earlier phases of the project at prices as much as 30% above current selling levels which Longfor insists just reflect market conditions.

“We decided the price according to market demand,” the company said in a statement emailed to Reuters. “The promotion, which ended on Oct 20, was an effective one when the company proactively grasped the right market opportunity.”

Hundreds of home-owners were on the same Shanghai street a day after the Longfor incident, staging a smaller protest in a Green Land Group development. There's been uproar at sites developed by China Overseas Land, Sino-Ocean Land and Huaye Real Estate Co.

Protests have flared in Beijing as well as Shanghai and threaten to spread. Social unrest is anathema for China's ruling Communist Party.

“The protests run an alarm to the public that gone is the time when home prices only rise and never fall. Investors need to be cautious,” the People's Daily, the top party newspaper, said in an opinion piece posted on its website on Oct 26.

Property is a touchstone issue in the world's second-biggest economy, generating around 10% of China's GDP.

Besides would-be buyers and profit-hungry developers, local governments across the country rely on income from land sales to service debts estimated at 10.7 trillion yuan (US$1.7 trillion) and fund construction of roads, railways and schools.

By Reuters

iProperty launches commercial property site

Region-wide cooling measures by the government on the residential property sector and the rising yield in the commercial sector has prompted the launch of CommercialAsia.com, the region’s first comprehensive website dedicated to commercial and industrial properties across Asia-Pacific.

The new website has the largest database of commercial and industrial property listings in the region with over 150,000 current listings, a figure expected to grow to over 500,000 by the end of 2012.

Spearheaded by The iProperty group, a leading Asian online property portal which reaches out to 3.5 million unique visitors and 25,000 real estate agents per month, the launch of CommercialAsia.com is timed in anticipation of the market trend.

Its chief executive officer, Shaun Di Gregorio said: "The iProperty Group’s data across Malaysia, Singapore, Hong Kong and Indonesia between 2010 and 2011 shows an upward trend in searches for commercial property."

With the government introducing cooling measures across Asia-Pacific and the fear of possible recession in the US and Europe and assumption of that impacting Asia-Pacific, the residential sector is softening as investors adopt a ‘wait-and-see approach, he said at the launch in Singapore.

By Bernama

Oversupply of retail and office space

KUALA LUMPUR: The Klang Valley will face an oversupply of office and retail space within the next two to three years, according to property consultancy CB Richard Ellis (M) Sdn Bhd.

Capital values for residential units would see some increases in 2012, but at slower rates compared with the past 18 months.

CB Richard Ellis executive chairman Christopher Boyd said while 2011 was a strong year in terms of demand for office space in the Klang Valley, rental values might succumb to an oversupply situation within the next 18 months.

“Short-term demand for office space is stable but unlikely to grow sharply,” he said at a talk entitled Kuala Lumpur Property Market In Times Of Uncertainty, which was organised by MIDF Research here yesterday.

Boyd said that total office space supply in the Klang Valley stood at 80.8 million sq ft at the end of the first half of 2011 (compared with 80 million sq ft at the end of 2010).

However, it was estimated that an additional 25 million sq ft of office space would come onstream in the Klang Valley by 2015 (excluding mega projects such as the Naza group's KL Metropolis development, Warisan Merdeka tower and the Kuala Lumpur International Financial District).

According to Boyd, vacancy rates in Kuala Lumpur are under 13%.

“This is not an alarming number, but vacancy rates are expected to increase as more supply comes onstream.” A report by CB Richard Ellis also noted that prime gross asking rentals were flat at RM7 per sq ft with only a handful of buildings above this level.

Since rising steadily from 2002 to 2008, rentals at top city centre buildings have remained mostly flat for the past two years.

“Asking rents at most top buildings in the city centre are within the RM6 to RM10 per sq ft per month range, with only a few select buildings, such as Petronas Tower 2 and Maxis Tower, achieving monthly rents of RM10 per sq ft and above,” said the report.

Boyd said recent average transaction prices of Grade A office space generally range between RM800 and RM900 per sq ft. “But there are higher prices than these being achieved in the market. We have recently seen prices of RM1,100 sq ft or more in Kuala Lumpur Sentral and SP Setia Bhd's KL Eco City.”

Meanwhile, CB Richard Ellis managing director Allan Soo said that the Klang Valley would overtake Singapore in terms of retail space per capita. Soo said as of the third quarter of 2011, total retail space supply in the Klang Valley was 43.7 million sq ft in 133 shopping centres and hypermarkets which was equivalent to 7.1 sq ft per capita (based on population of 6.1 million).

“This is higher than Bangkok, Thailand which stands at about 6.5 sq ft per capita, and equivalent to Singapore. However, it is a landlords' market in Singapore where malls are well connected by MRT (mass rapid transit) and are doing well. In the Klang Valley, it is the reverse - the tenants are the kings.”

Soo estimated that by 2014, the Klang Valley will have 53 million sq ft of retail space in 149 malls and hypermarkets.

However, Soo pointed out that only about 43 shopping centres and hypermarkets out of the existing 133 (or 30%) were performing well.

A report by CB Richard Ellis said the next rental review for established shopping centres would be in 2013 and rents may hit RM122 per sq ft. On residential property, Boyd said the pace of capital appreciation would slow in the next two years as new supply come onstream. In the condominium segment in Kuala Lumpur, total supply grew by 11% since end-2010 to 63,994 units in the first half of this year.

The supply figures included all projects with average prices of RM350 per sq ft and above.

While there had been a shift in buyers' preference towards smaller and more affordable units, Boyd said average asking rentals have declined in prime areas of Kuala Lumpur City Centre (KLCC) and Mont Kiara.

“In some cases in the KLCC area and and Mont Kiara, condominium rentals have halved in the last two years.” Rental rates in the three main condo markets (KLCC, Bangsar and Mont Kiara) on a per sq ft basis have declined since 2007, reflecting weaker demand for rental units coupled with increased supply.

Boyd also pointed out that new housing projects in the Klang Valley had begun to pick up in the first half of this year, with 15,030 units.

This is contrasted with a trend of falling incoming supply, new completions and housing projects in the Klang Valley since 2004.

From 2004 to 2007, there were new housing projects supplying more than 60,000 units each year.

However, the supply from new housing projects dipped to 41,583 units in 2008 and subsequently, between 22,000 and 25,000 in the following two years.

“The supply stream of new housing units fell in 2008. I do not think it was just the result of the global financial crisis. As building costs were rising sharply without selling prices coming up to match them, perhaps developers took the view they should hold back. And this contributed to the fast rising housing prices in the last two years.”

By The Star

Office property market seen stable

KUALA LUMPUR: Malaysia's office property market is likely to remain fairly stable next year, but oversupply is expected in the next 18 months, says CB Richard Ellis (CBRE) Malaysia Sdn Bhd, a property consultancy firm.

The oversupply situation is due to a competitive rental market, its executive chairman Christopher Boyd told reporters after a luncheon talk on "Klang Valley Property Market Overview", hosted by MIDF Amanah Investment Bank Bhd here today.

However, he said, the arrival of multinational corporations in Kuala Lumpur due to the low operating costs as well as the young and well-educated population would help stabilise the office market.

Boyd said the supply situation has improved from two quarters ago, with some projects being pushed back or cancelled, but others are still on the drawing board.

He added that major developments including Naza KL Metropolis, Tan Chong Segambut, Warisan Merdeka and KL International Financial District could have a major impact.

By Bernama

Iskandar Malaysia property market set to grow

JOHOR BARU: The property sector in Iskandar Malaysia will benefit immensely with the improvement in connectivity and accessibility within the economic growth corridor.

Iskandar Regional Development Authority (Irda) chief executive officer Ismail Ibrahim said this could be seen from many new property projects being built in recent years.

“Better accessibility and connectivity will help push up demand as well as prices for properties within Iskandar Malaysia,” he said at an event to mark the completion of three new traffic interchanges.

These are the Bukit Indah-Taman Tema 1 and Taman Tema 2 interchanges costing RM135mil, Jalan Abu Bakar-Jalan Lingkaran Dalam interchange (RM17mil) and Indahpura elevated interchange (RM36.2mil).

Ismail said the interchanges are expected to be open to motorists between now and the first quarter of 2012, pending approval from the Malaysian Highway Authority.

He added that the new interchanges would help to reduce traffic congestion between 20% and 30% along existing roads and shorten travelling times between 15mins and 20mins.

“Apart from upgrading the road network, we will also focus on improving the public transportation system in Iskandar Malaysia,” he said.

Ismail said relevant parties in Malaysia and Singapore were already discussing the improvement of people’s movement between Iskandar Malaysia and Singapore via a Light Railway Transit system by 2018 or 2020.

He said, to date, Irda had spent RM4bil from a RM6.38bil allocation to undertake infrastructure works such as road improvement, flood mitigation, river cleaning and public housing.

The country’s first economic growth corridor Iskandar Malaysia, was launched on Nov 4, 2006, it covers 2,217 sq km located in the southernmost part of Johor.

From 2006 up to the third quarter of this year, it has attracted RM77.82bil in committed investments, of which 60% is from domestic investors and 40% from foreigners.

By The Star

Sunway REIT property income up 27.2pc

KUALA LUMPUR: Sunway Real Estate Investment Trust (Sunway REIT) recorded a 27.2 per cent jump in its net property income to RM70.3 million for the quarter ending Sept 30, 2011 over that of the previous corresponding period, said its manager Sunway REIT Management Sdn Bhd.

The company attributed the strong performance to the higher contributions from the initial portfolio of eight assets and Sunway Putra Place of RM9.7 million and RM5.3 million respectively.

Sunway REIT’s net realised income rose by 15.1 per cent to RM44.2 million in the same period from that of the previous corresponding period.

Overall, Sunway REIT has performed better by RM5.8 million after taking into account the net loss of RM1.8 million by Sunway Putra Place due to no income contribution from Sunway Putra Hotel in the first quarter of its current financial year.

Sunway REIT secured full control and possession of Sunway Putra Place including the hotel on Sept 28 2011, and the manager expects positive contribution for the financial year ending June 2012.

The manager announced distribution per unit of 1.75 sen for the first quarter of its current financial year, representing an increase of 15.9 per cent compared to the previous corresponding period. This translates into an annualised distribution yield of 6.3 per cent based on Sunway REIT’s closing price of RM1.11 on Sept 30, 2011.

Sunway REIT Management chief executive officer Datuk Jeffrey Ng said: “We are positive on the prospect of the portfolio for this financial year amidst headwinds in the external environment. With the full possession and control of Sunway Putra Place, the focus now is to turn around the property and reposition the property into a must-visit destination for local visitors and foreign tourists."

"We are confident that upon the completion of the refurbishment exercise, the asset will enjoy a quantum leap in income as well as capital appreciation in the asset value," he added.

By Bernama

Dijaya aims to raise market cap to RM3bil

PETALING JAYA: To beef up the financial muscles and market presence of mid-cap property company Dijaya Corp Bhd, its group chief executive Tan Sri Danny Tan aims to enlarge the company's market capitalisation to between RM2bil and RM3bil in the next five to six years from about RM900mil now.


Tan says Dijaya has beefed up its management team to oversee the upcoming projects

Tan believes the target is achievable if Dijaya adopts the right land-banking expertise to buy land in the right location and leverages on its strong brand advantage.

To raise fund for new land acquisition, Dijaya is undertaking a private share placement exercise to expand its share base from the current 457 million shares to 594 million shares.

The exercise, which has been approved by the Securities Commission and company shareholders at an EGM recently, is to be completed within a year. Dijaya targets to raise up to RM200mil from this exercise.

Tan said the exercise would also serve to raise the company's share liquidity and promote greater investor interest in the company.

Upon conclusion of the exercise, Tan's 67% stake in Dijaya will be reduced to 51%.

According to Tan, Dijaya is actively looking for opportunities to further expand its land bank in the growth markets of the Klang Valley, Johor and Penang.

In the last five to six months, Dijaya acquired 569 acres in the Klang Valley and Johor to bring its total land bank to 708 acres.

The land will be able to yield a gross development value (GDV) of RM18bil over the next eight to 10 years, and contribute to stronger earnings streams for the company.

Tan said that on an annual basis, Dijaya can look forward to between RM1.2bil and RM1.3bil in new project launches, compared with RM800mil for the current financial year ending Dec 31, 2011 (FY2011).

It is targeting sales of RM500mil for FY2011, RM820mil in FY2012, and RM1.24bil in FY2013. As at September 2011, the company has unbilled sales of RM472mil.

To oversee the upcoming projects, Tan said Dijaya had beefed up its management team. Three executive directors have been appointed to take care of the northern, central and southern regions of Peninsular Malaysia.

“We now have a strong team backed by years of experience in each of their field of expertise. In terms of project planning, we also have to be far-sighted and innovative to continue to excite our property buyers in different locations.

“This will greatly strengthen our performance and lead the company to new heights,” Tan told StarBiz.

He said another of Dijaya's advantage is the Tropicana brand which is already at least 18 to 20 years in the market, with two signature projects to its name the 625-acre Tropicana Golf & Country Resort and 409-acre Tropicana Indah Resort.

Tan said Dijaya would launch RM800mil worth of new projects this year, RM1bil next year and RM1.3bil in 2013.

The first to be rolled out around mid-November will be Tropicana Avenue in Tropicana Golf and Country Resort comprising two floors of retail podium with offices and soho units above the podium block. The RM412mil project is targeted for completion in 2013.

The integrated commercial development of Tropicana Danga Bay on 37 acres will be unveiled in Iskandar Malaysia, Johor in December. The RM3.8bil development will comprise service apartments, hotel, office tower, shopping mall, and retail cum office lots. It will take over 12 years to complete.

Early next year, the 26-acre Tropicana Cheras comprising terrace and semi-detached houses and bungalows worth RM185mil will be launched.

The 227-acre Tropicana Danga Cove in Johor with GDV of RM2.8bil will be unveiled in the first half of 2012.

Two other project launches are also slated for next June. The first will be the 88.5-acre Tropicana Hills in Subang with upper medium range of mixed residential and commercial development. The RM3.5bil project will take eight to 10 years.

Tropicana Bayou, a gated and guarded residential project on 66 acres in Balakong with GDV of RM400mil, is scheduled for launch next June.

Following which will be the Tropicana Gardens commercial centre on 14 acres opposite Giza Sunway in Kota Damansara. The lake-fronting project with GDV of RM1.8bil will feature service apartments, soho units, offices, a hotel and lifestyle retail space. It will take over eight years.

By The Star

Glomac eyes land in Greater KL for integrated mixed projects

PETALING JAYA: Armed with a net cash position of RM361.6mil as at July 31, 2011, Glomac Bhd is on the lookout to buy small land parcels with fast turnaround and high gross development value potential in the Greater Kuala Lumpur area.

Group managing director and chief executive officer Datuk Fateh Iskandar Mohamed Mansor said negotiations were under way for some suitable sites to be developed into integrated mixed projects.


Iskandar: ‘This strategy will contribute to a solid balance sheet.’

He said there were some “under-rated” sites where Glomac could use its expertise to enhance the land value through innovative infrastructure, branding, marketing and design.

“At the same time, this strategy will contribute to a solid balance sheet while keeping down the company's debt position,” he noted.

Glomac is also keen to participate in government land privatisation and is looking at some of the projects.

Based on a consistent growth in profit over the past three years, the company is confident of posting a double-digit growth in its earnings for its financial year ending April 30, 2012 (FY2012).

Glomac recorded a profit after tax of RM32mil for FY2009; RM41mil for FY2010; and RM63mil for FY2011.

“For FY2012, Glomac is looking to launch up to RM1.2bil in new projects comprising affordable housing units, medium to medium upper range of properties and commercial projects.

The developments slated for launch this year include projects in Glomac Damansara (RM250mil), Mutiara Damansara Residences (RM250mil), Glomac Utama Phase 1 (RM250mil), Glomac Cyberjaya 2 (RM100mil) and townships in Rawang, Sungai Buloh and Johor (worth a combined RM295mil).

“Having achieved RM100mil in sales for the first quarter ended July 31, Glomac is on track to achieve its sales target of RM500mil for FY2012,” he added.

The company raked in sales of RM418mil in FY11. As at July 31, it has unbilled sales of RM550mil.

Iskandar said Glomac's landbank of close to 404.68ha had an estimated GDV of RM3.8bil. The landbank will keep it busy for the next six to seven years, and he expects Glomac to undertake projects worth some RM600mil a year.

Glomac assistant general manager, group corporate communication and corporate marketing, Fara Eliza FD Mansor said the company would be unveiling its latest property projects at The Star Property Fair 2011 to be held from Nov 25 to 27 at the Kuala Lumpur Convention Centre.

The projects to be exhibited include Glomac Damansara, the company's flagship mixed development on 2.75ha fronting Jalan Damansara.

Fara said the project with a GDV of RM898mil, offered a hybrid mix of business and leisure property.

“Glomac Damansara Residences comprise two blocks of service apartments. The 356 apartments with built up of 876 sq ft to 2, 529 sq ft are priced from RM581,660, or around RM650 per sq ft. So far, 75% of the units have been sold,” she added.

Also sold are the five and eight-storey shop offices (GDV of RM54mil), and the 25-storey corporate tower office suites (GDV of RM171mil) which was sold en-bloc last year.

Glomac Damansara will also have a 16-storey office block and a boutique retail mall (with a total GDV of RM388mil) that will be launched later.

Fara added that the other projects to be showcased at the property fair will be Glomac Utama's double-storey shop offices and service apartments; Mutiara Damansara Residences, consisting of 299 units of 1,200 sq ft to 1,600 sq ft of freehold service apartment project; Sinaran@Suria Residen a gated and guarded development in Cheras and three to 41/2-storey shop offices at the RM250mil Glomac Cyberjaya 2 project.

By The Star

Kosmopolito to expand in Malaysia

Hong Kong's Kosmopolito Hotels International is optimistic of Malaysia and growth in the three- and four-star hotel category

Kuala Lumpur: Hong Kong's Kosmopolito Hotels International Ltd (KHI) aims to expand its hotel portfolio in Malaysia, either by building properties from scratch or taking over abandoned buildings.

President Winnie Chiu Wing Kwan said the company may also buy hotels that are not performing well, and turn around the properties by strategising on its key brands.

"We like distress properties and are interested in three- and four-star hotels. We believe in turning around. Our group also has the experience to convert industrial and office buildings into hotels, so there are a lot out there for us.

"We are optimistic of Malaysia and growth in the three- and four-star hotel category. Budget airlines like AirAsia and FireFly have revolutionised this place and contri-buted to industry growth," Chiu told Business Times in an interview recently.

Currently, KHI has five hotels in Malaysia - Dorsett Regency Hotel Kuala Lumpur, Grand Dorsett Subang, Grand Dorsett Labuan, Dorsett Johor and Maytower Hotel and Serviced Residences - all opera-ting in the three- and four-star ca-tegories.

Chiu said the company is looking to set up more hotels in the Klang Valley and Sabah.

KHI is also interested in management contracts to boost income, she said.

By the third quarter of next year and in 2013, the company expects to manage two new hotels under Malaysia Land Properties Sdn Bhd (Mayland) in Cheras and at Plaza Damas 3 in Sri Hartamas, Kuala Lumpur.

In Cheras, Mayland had acquired Phoenix Plaza, now called Cheras Central Shopping Mall, in 2009 for some RM80 million.

Mayland is re-modelling the complex for more than RM120 million and the new set-up will include a shopping mall and a four-star hotel, which will operate under the Dorsett Regency brand.

At Plaza Damas 3, MayLand is also building a four-star hotel, which will carry the same brand name.

By Business Times

Developer says no more work being done as contruction completed

Easy to get lost: Poor signage at Solaris Dutamas has become a bane for both tenants and visitors.

Claims made by the tenants and owners of commercial units in Solaris Dutamas Kuala Lumpur about their problems with the joint management of the retail and office has been refuted by the developer and management of the development.

The developer and management of Solaris Dutamas, Sunrise Bhd community and customer development general manager Anne Tong denied that there was still construction works and flying debris as claimed by the stakeholders.

“It is impossible that at this stage there is still construction works and debris as the development is already completed.

“Whatever works done in the development at the moment are the renovation works within Publika, which is the shopping mall within the Solaris Dutamas development.

“Some of the works are by the individual retail outlets done by the tenants or shop owners themselves,” she said during an interview which was also attended by Segambut MP Lim Lip Eng, in respond to the claims made by the stakeholders.

However, Tong admitted that there were problems with the signage in the development which was also one of the problems cited by the stakeholders.

“We understand that the signage here can be a bit difficult. However, we have engaged a consultant from Singapore to work on upgrading the ‘wayfinding’ signage for the development. As this is an ongoing exercise, changes will be gradual,” she said.

Tong added with regards to the high parking rates and claims, that the revised rates would not encourage more customers and they would resort to other malls claimed by the stakeholders were incorrect.

“The revised parking rate is fixed at RM1 for the first three hours and RM2 per hour for the subsequent hours not RM1 for the first hour.

“We believe this price is reasonable as it is comparable to other shopping malls in the Klang Valley and it is relatively cheaper than several shopping complexes nearby,” she said adding that the parking rate is maintained at RM1 per entry during the weekends to attract and encourage more shoppers.

When asked about the claims by stakeholders that their units are not given proper publicity, Tong said they could not allow the business operators to hang their own buntings and banners along the corridors and the car park as it would affect the outlook of the development.

“Just like any other shopping areas, we cannot let them place their buntings and banners as the outlook and appearance will be affected.

“We have to maintain and control this,” she said adding that they have also given publicity for many of the outlets in Solaris Dutamas by featuring them in the Sunrise news bulletin without charging them.

Some 200 tenants and owners from Block C and D signed a petition recently to the management of the development and organised a press conference with Segambut MP Lim Lip Eng to highlight the issue.

Most of them said there are several things that have hampered their business in the area with one of the most pertinent problem was the delay in the completion of Publika shopping mall and the commercial units claiming there was debris flying around that was affecting their business.

The tenants and owners claimed that the construction was still going on although the works at Solaris Dutamas should have been completed two years ago.

They are also unhappy that their units are not given proper publicity and are treated as a separate entity from Publika that has received numerous advertisements and articles in the local media.

Deciding to take matters into their own hands, the business operators printed their own buntings and banners along the corridors and the car park. However, they were told they could not do that and the security guards had gone around collecting the banners and placing them in the carpark to be picked up by respective owners.

By The Star

Budget 2012 boost to property and construction sectors

Abdul Rahim Rahman expects Budget 2012 to boost the property and construction sectors.

The RM232.8bil budget tabled by Prime Minister Datuk Seri Najib Tun Razak on Oct 7 was formulated with the theme National Transformation Policy: Welfare for the rakyat; well-being of the nation”.

It aims to implement development plans such as projects and programmes under the Second Rolling Plan (RP2), National Key Economic Areas (NKEA), National Key Result Areas (NKRA) and Strategic Reform Initiatives (SRIs) focusing on the well-being of the general population and aiming at stimulating the domestic economy.

The Government is targeting GDP growth of between 5.5% and 6.0% for 2012. However, our external environment has become increasingly challenging with the economic slowdown in the United States, Europe and Japan, inflationary pressures due to rising commodity prices, and the European debt crisis.

The International Monetary Fund revised its projected world economic growth to 4% and world trade to 5.8%. The Malaysian Institute of Economic Research (Mier) has revised the country's gross domestic product (GDP) growth to 4.6% this year compared with an earlier forecast of 5.2% due to slowing exports and weaker domestic demand stemming from a volatile global outlook.

Next year's GDP has also been revised to 5% from 5.5%. In view of these challenges, it is critical that the Government implement measures to stimulate the domestic economy, both public and private investments.

The momentum for the construction industry is expected to accelerate with various projects to be implemented under Budget 2012. While contribution of the construction industry to GDP has always been small, it is projected to grow by 7% in 2012, the highest growth compared with all other sectors.

Its multiplier effect has always been large, involving 146 sub-sectors. Therefore, we expect the special stimulus package worth RM6bil for the construction industry to have positive effects on the economy. The construction projects announced by the Government will benefit not only big players but also the entire value chain including small players.

The RM40bil MRT project is expected to stimulate property development along the MRT line with some developers trying to take this advantage by building affordable homes in the suburbs near the MRT line. It was announced recently that Mah Sing has entered into a share sale agreement to acquire the entire stake in Semai Meranti Sdn Bhd, which is the beneficial owner of a piece of freehold development land (with development order) in Rawang, measuring 225.7 acres, at a total purchase consideration of RM92mil.

The land will be developed into a self-contained township named M Residence@Rawang, offering entry level homes priced from RM390,000. SP Setia has also recently announced its second land deal in the Semenyih-Kajang corridor buyinga 269.3ha site for RM381.26mil in Ulu Langat to be developed into a township with an estimated gross development value (GDV) of RM4bil.

The land is adjacent to its current development, the Beranang Land with an estimated RM3.5bil GDV. The site is about 13km south of Kajang town and homebuyers are expected to benefit from the proposed MRT station in Kajang. SP Setia plans to build affordable homes to cater to first time home buyers.

The Federal Government's proposal to liberalise 17 services sub-sectors in phases next year has also received positive reactions from investors. This liberalisation will benefit private hospital services, medical and dental specialist services, engineering, accounting and taxation, and legal services. Looking at the real estate side, we expect more new township developers will include private hospitals and other medical services as part of their development components in their effort to create self-contained townships.

The implementation of main projects under RP2 such as Gemas-Johor Bahru double track rail project, Lebuhraya Pantai Timur Jabor-Kuala Terengganu, Lebuhraya Pantai Barat Banting-Taiping, Lebuhraya Segamat-Tangkak and Lebuhraya Central Spine as well as the construction of Kota Marudu-Ranau road will create greater accessibility to less developed areas in Malaysia, which will then spur development in these areas.

The RM978mil allocated to implement projects such as Johor Bahru-Nusa Jaya coastal highway in Iskandar, Johor, heritage tourism development in Taiping in the Northern Corridor, agropolitan scheme in Besut in the East Coast Economic Region, palm oil industrial cluster project in Lahad Datu in Sabah Development Corridor and Samalaju water supply in the Sarawak Corridor of Renewable Energy is expected to accelerate development in the five regional corridors and this will help the Government to achieve its development objective of creating more balanced regional development in the country.

Incentives offered to KLIFD-status companies not only emphasise the Government's effort to turn Kuala Lumpur into a global financial centre but also attract more investors to participate in the development of the project.

The project is aimed at enabling Malaysia to capitalise on its international Islamic financial products and and this is further strengthened with measures proposed in the budget to stimulate the sukuk market and provide the seed money for shariah-compliant exchange traded funds (ETFs).

The incentives are a 100% income tax exemption for a period of 10 years and stamp duty exemption on loan and service agreements for KLIFD-status companies, an industrial building allowance and accelerated capital allowance for KLIFD Marquee Status Companies; and income tax exemption of 70% for a period of five years for property developers in KLIFD. It is hoped that with these incentives, KLIFD will be able to compete with other financial centres in Asia.

The real property gains tax (RPGT) is also proposed to be revised as one of the measures to cool the property market. In Budget 2012, it was proposed that the RPGT on properties held and disposed of within two years be raised from 5% to 10%, 5% tax to be maintained for properties disposed after three to five years and no tax for properties disposed after the fifth year.

From a macro-economy perspective, a higher RPGT will reduce speculative buying, which will then stabilise property prices and this will avoid “property bubbles” from bursting. This step is necessary as property prices, especially in prime areas such as in Klang Valley, Penang and Johor have increased over the last two years between 30% and 50%, depending on location and type of property. This measure is considered “mild” compared with more stringent measures imposed by other countries such as Singapore, which imposes a lower loan-to-value ratio (60%) for borrowers with more than one outstanding loan and higher seller's stamp duty.

As one of the NKEAs, the tourism industry will also receive a shot in the arm. For example, RM420mil will be allocated to launch the Langkawi Five Year Tourism Development Master Plan. Among the initiatives to be undertaken are the restructuring of the Langkawi Development Authority, setting up a park rangers unit, upgrading museums, beaches and small businesses as well as providing a more efficient transportation system.

In my view, to create a more supportive environment for the tourism industry, it is of high importance for the Government to also re-look at current restrictions on buying and investing in properties in Langkawi. The island has great potential; however, more needs to be done to attract hotel operators as well as investment in tourist-related activities as the current regulations are considered as “unfriendly” to foreign buyers or investors.

In an effort to attract high-spending tourists and to encourage investment in hotels at par with international standard, the Government also proposed that 4- star and 5-star hotel operators in Peninsular Malaysia be given pioneer status with income tax exemption of 70% or investment tax allowance of 60% for 5 years.

This incentive is expected to encourage more hotel development, which many hesitate to venture into because the payback period is normally as long as 10 to 15 years.

Overall, I would conclude that Budget 2012 is very comprehensive and the Government has focused on every aspect that will stimulate the country's economy considering the many external challenges that we are facing now.

Senator Datuk Abdul Rahim Rahman is the executive chairman of Rahim & Co group of companies.

By The Star (by Datuk Abdul Rahim Rahman)

Klang Valley’s impending transformation

It is undeniable that Klang Valley's built environment is on the threshold of some major changes with ongoing plans to improve the infrastructure network, such as the My Rapid Transit (MRT) project and the planned redevelopment of some of the Government's land.

The days of the present property landscape may be numbered as old and dilapidated buildings may be demolished to make way for other new projects and buildings. In this regard, it is imperative to ensure that historical buildings should be spared and property owners of buildings that need to make way for this development process, will be duly consulted and compensated.

While the pursuit of new development projects is well and good in the name of growth and development, we must ensure that at the end of the day the projects will offer more greater good to the larger populace.

The gauge on how successful the project will turn out should not be just based on its quantum of material or monetary benefit, but what is equally important is that it must offer a greater net benefit after weighing both the economic and monetary, as well as non-monetary components.

Ultimately the success of a development project should be measured by the accrued benefits to the people and how it will help towards adding value to their overall well-being.

As such, when assessing the viability of projects, instead of just considering the monetary costs and benefits, it is equally important to give due consideration to the non-monetary and social benefits and costs.

Project planners should ensure that the total accrued benefits will at least equal or outweigh the total cost. In this regard, it is important to bring to bear all the components of the costs and benefits in their assessment.

One good example is the need for a workable national public housing programme. If the project's viability is just measured based on the total monetary benefits against the costs, it won't be surprising to see that the cost-to-benefit study will turn up negative to show that the cost outweighs the benefit.

Given that these housing units have to be priced affordably at a certain price threshold, it may fail on the benefits side of the equation if it is just based on the monetary benefits. But adding up all the social benefits of a well run public housing programme will show that it is a highly desirable and beneficial project to the public.

This is because as far as the benefits are concerned, it is not just about the total income or profit to the developer, but it is also about how a wholesome, safe and well built environment will benefit and help the average Malaysians and their families to thrive and make good in life.

If these public housing projects are well designed with reasonably sized built-up to fit at least three rooms, have space for community and sports activities, and are safe and well managed, the benefits will come in manifold. These include thriving, happy and closer knit families; more responsible adults and parents; less divorce cases; better behaved and high performing children; and less cases of truancy, dropouts and other social menaces.

I always believe that the foundation for a thriving and healthy society starts with the family unit. As long as we continue to keep our family unit functional and thriving, many of the ills facing our society today will be nipped in the bud.

Given the wide ranging benefits of having a well planned social housing programme, it should be accorded top priority and more resources should be allocated to ensure its success. Likewise, there are also many non-monetary benefits from a well integrated and efficient public transport system that warrant it being placed on the priority list as well. These include less hassle and stressful city living; higher productivity if the people can move around with ease which means spending less time on the road; and hopefully they can also save up money for rainy days (by not having to own and maintain a car).

To ensure its success, the whole array of public transport network should be integrated and be complementary to each other, instead of competing with each other for business. It can be likened to the chicken or egg situation. Once the infrastructure is in place and running efficiently, I believe many Klang Valley folks will voluntarily resort to using public transport.

Come to think of it, the construction of the new MRT stations and tunnelling works will no doubt cause massive traffic jams and congestion when the time comes.

This is not something Klang Valley folks are looking forward to, and it is imperative that advance arrangements are made to redirect traffic flow and ensure the construction work will not be disruptive to road users. As it is, many roads in the capital city are already heavily choked by the heavy vehicle traffic especially during rush hours. The current wet spell only serves to worsen the situation.

Deputy news editor Angie Ng looks forward to a holistic, wholesome and sustainable living environment that will be functional and relevant for many years to come.

By The Star (by Angie Ng)

Jaya One to expand

An artist’s impression of the new phase of Jaya One in Section 13, PJ.

JAYA One, one of several developments in Petaling Jaya's Section 13, will be increasing its footprint with a new phase of commercial development to complement the current five commercial office buildings located at the junction of Jalan 13/6 and Jalan Universiti.

Construction of the new phase has already started and will comprise 400 retail, residential and office units on an additional four acres of land, says Tetap Tiara Sdn Bhd executive director (Jaya One) Charles Wong.


Wong: ‘When we launched the first phase of Jaya One in 2004, it took a bit of convincing the market then that office properties would sell.’

“When we launched the first phase of Jaya One in 2004, it took a bit of convincing the market that office properties would sell. We did not do residential because we knew that it would not work. Now that we have completed the first phase, we are ready to launch residential units in the form of serviced apartments,” he says.

The new phase will comprise 30 units of retail and 130 office units. There will also be 240 units of serviced apartments spread over two blocks. The new phase will consist of a gross built-up area of about 993,000 sq ft, bringing the gross area up to about 1.7 million sq ft.

Prior to the development of Jaya One, the 11-acre site was occupied by a factory.

The retail portion is priced between RM850 and RM1,300 per sq ft. Sizes range from 1,200 to 3,500sq ft. The office portion is priced at RM580 per sq ft. The first residential tower of 13 storeys is priced at RM600 to RM650 per sq ft while the four-storey, second residential block is priced at RM600 per sq ft.

“Section 13 will be a dynamic market as the local authorities have put many new requirements in place. There are several serviced apartment projects coming up. Among the new requirements is the need for developments to be inter-connected with one another. The most practical way will be the provision of bridges to link the projects together. We will be building connecting bridges to neighbouring developments to allow easy access and movement among the buildings within Section 13,” says Wong.

He says there will be greater setbacks between neighbouring lots and internal roads are being planned to avoid adding pressure to the current three roads that service the area. Currently, the three roads are Jalan Universiti, Jalan Kemajuan and Jalan Semangat. Internally, Section 13 is served by Jalan 13/6.

Wong says the authorities are trying to get land owners to amalgamate pieces of land to avoid ad hoc development.

The gross development value for the new phase is RM360mil for the portion of the development the company is selling. The company will retain a certain portion for recurring income as it did with Palm Square, which comprises mainly food and beverage outlets in the first phase of the project.

Wong says thus far, most of the buyers are investors with about 20% buying for their own use. The first phase is currently fully occupied with offices being rented out between RM2.50 and RM2.80 per sq ft, retail outlets at RM6.50 and RM7 per sq ft and Palm Square RM8.50 and RM10 per sq ft.

Wong says a large number of those who bought into the new phase had previously bought into the first phase. Besides Tetap Tiara's serviced apartment blocks, there are currently two other serviced apartment projects being planned for Section 13.

By The Star

Smart City-Smart Village to contribute RM95bil to economy by 2020

KUALA LUMPUR: Smart City-Smart Village, the second high-impact project to be implemented through Global Science and Innovation Academy Council (GSIAC), is expected to contribute RM95bil to the national economy by 2020.

It was also expected to increase opportunities in the service industry and create employment across the value chain for 420,000 people, GSIAC said in a statement.

“The Smart City-Smart Village project aims at balancing development in the urban and rural areas, focusing on the use of green technology and information and communications technology (ICT).

“The goal of the initiative is to improve everything from energy use to healthcare, education, traffic and shopping by doing it ‘smart’ with the help of ICT and green technology,” it added.

GSIAC yesterday hosted a Smart Communities Workshop together with the Malaysia Industry-Government Group for High Technology (MIGHT) and New York Academy Of Sciences to gather inputs for the implementation of the Smart City-Smart Village projects in Malaysia with other key stakeholders.

MIGHT president and chief executive officer Mohd Yusoff Sulaiman said “green field” and “brown field” projects had been identified for the Smart City programme.

“In a green field project we find there’ll be a very good opportunity to develop new cities like the Iskandar region and cities near the Greater Kuala Lumpur area.

“In a brown field project such as the present city of Kuala Lumpur, we see a need to also see beyond the elements of infrastructure such as social development, culture and the value we can add to the existing city development to raise the quality of life,” he added.

By Bernama

Lau: Fee for land status transfer up to developer and residents’ lawyers

The Selangor state government has no power to fix a flat rate or offer discounts for residents of the Sri Aman low-cost flats in Section 22, Petaling Jaya, who are having difficulty paying for their transfer of land status to strata title.

Kampung Tunku assemblyman Lau Weng San, in rebuking a statement made by Selangor MCA Public Services and Complaints Department deputy chairman Kelvin Chong Seng Foo, said the state government was not involved in matters pertaining to payments to obtain the strata titles by the residents.

Two weeks ago, Chong, who is Kampung Tunku co-ordinator, urged the state government to fix a flat rate and “to be fair to all low-cost unit owners” as they all have different rates to pay for the transfer of strata title.

Lau rebutted by saying that this was an issue between the residents, the Sri Aman low-cost flat developer and their respective lawyers who are handling the transfer of land status.

“It is incorrect for Chong to say that the state government is charging a high fee for the residents for the transfer of land status to strata titles.

“However, I have made a request to the state government to extend the Oct 15, 2011 deadline for the residents to settle the fees for the strata title allocation.

“In this matter, we do have the power to make the time extension under Section 40A (2) of the Strata Titles Act 1985,” explained Lau after meeting with the residents of Sri Aman low-cost flats.

He also urged the residents to settle their outstanding debts to the Sri Aman Joint Management Body (JMB) to expedite the process of obtaining their respective strata titles.

“Some of them have yet to pay up their maintenance fees which includes the sinking fund and water bill.

“This will only slow down the process of getting the strata titles. It is not possible for the state government to help the residents pay for their outstanding arrears because it will be unfair to other low cost unit owners who have settled their debts,” added Lau.

In October last year, all 342 households of Sri Aman flats received notices from the developer requesting them to pay the processing fees to exercise the transfer of land status to strata titles.

The residents were given a year to settle the processing fees which range from RM500 to RM2,000.

By The Star

Vietnam property seen rising again in two years

Cool market: Four years after a real estate boom that saw investors camp in the streets to pay cash for unbuilt apartments, Vietnam’s once hot market is in a chill. — AFP

FOREIGN property developers should take a serious look at Vietnam despite the country's macro-economic challenges amid a struggle to subdue double-digit inflation without dampening growth, according to commercial real estate firm Colliers International research director Naim Khan-Turk.

While noting that the property market in Vietnam is currently in a downturn, Naim is expecting the situation to improve in two years.

Naim's expectations are not without foundation as a few years ago, Vietnam was seen as a fast-growing “Asian tiger” with an emerging market of about 86 million people and a low-cost labour force.

Today, Vietnam is grappling with rising consumer prices, a weakening currency and a tight credit policy while trying to revive optimism concerning its economic growth.

Naim, who has been based in Ho Chi Minh City for more than seven years, recalls that from 2005 to 2009, it was a boom time for the development and growth of the real estate market in Vietnam.

“A few years ago, at the peak of the cycle in the real estate market, there was plenty of money swimming around for developers to use. At that time, we had every fund in the world coming into Vietnam wanting to do this and that. Now, the situation has gone the other way, and developers cannot get their hands on money to finance their projects,” says Naim, who spoke to StarBizWeek on the sidelines of the two-day Mixed-Use Development 2011 conference, organised by Trueventus Sdn Bhd in Kuala Lumpur, which gathered experts in property development in the Asia-Pacific region.

In October, inflation in Vietnam accelerated to 21.59% from a year earlier.

The high consumer price index (CPI) for October meant that inflation had slowed for a second month, after climbing to a high of 23% in August.

This month, in order to subdue Asia's highest rate of inflation, Vietnam's central bank also raised its refinancing rate to 15% from 14% previously, while maintaining its base interest rate at 9%.

“What this means is that the credit crunch in Vietnam has resulted in the real estate market becoming very compressed, and a lot of property developments are slowing down or not starting. Certain projects are still moving along but things have been put on hold to a certain degree,” says Naim.

Naim also reiterates that property development in Vietnam is a long-term process for investors.

“In the past, many foreign investors did not realise how things in Vietnam work. Things do not happen quickly - planning, purchase of land, construction permits and licensing - it could be over two years in some cases before you get to the ground.”

He cites examples of companies such as CapitaLand Ltd. “They have been in Vietnam for five years now, and had to spend their time getting the projects through.”

Naim says foreign property developers in Vietnam need to allocate time to build their networks, establish contacts and secure land.

“What you can obtain is a 50-year lease term on the land. In some cases, it can be up to 70 years. That allows you to develop.”

According to Naim, the process of obtaining an investment license in Vietnam has been made easier nowadays.

“It used to take up to a year. Now, as long as your paperwork is in order, getting an investment license should take between three and six months.”

He points out that Vietnam is an emerging market offering many opportunities.

“It is a question of whether you are willing to overcome the hurdles or not. It is not for the faint-hearted or those with the mentality that they can just walk in there and do something; then they are going to come unstuck.”

Naim says foreign companies that have been successful in Vietnam are the ones that took the long-term view, and cites Malaysian examples such as SP Setia Bhd, Berjaya Corp Bhd, Gamuda Bhd, WCT Bhd and Ireka Corp Bhd.

“Although the real estate market does not look very rosy now, this is the right time to come in because of the time scale it takes to get projects going in Vietnam. Land can be acquired at much cheaper prices compared with a few years ago.”

According to Naim, margins can be 23% to 25% for a typical property development in Vietnam.

Also, he says there is strong demand for office space. “At the moment, occupancy is around 85% across all grades of office space. Following the global downturn in 2008, Grade A office rentals are now around US$35 (RM109.40) per sq metre.”

He recalls that office rentals in Ho Chi Minh City peaked at US$70 (RM218.80) per sq metre before the global financial crisis in 2008.

“One of the things that made Vietnam so attractive was that a few years back, office rents were one of the highest in the world, in Ho Chi Minh City and also Hanoi.”

Naim notes that new commercial buildings are steadily growing taller and with more modern designs.

“The 68-storey Bitexco Financial Tower in Ho Chi Minh City is Vietnam's tallest building (opened late last year). There will be a taller 72-storey structure in Hanoi soon.”

By The Star

Home is where the Arte is

Designed to promote uniqueness: An artist’s impression of Arte@Kuchai Lama project.

WOULDN’T you like to own a home that is futuristic in its architecture as well as unique in art form? Property developer Nusmetro Group is launching its latest development — Arte@Kuchai Lama, this weekend to promote its new Art Series brand of homes.

Nusmetro, with its philosophy of Branding Homes, will be using Arte as its platform to launch its Art Series brand.

“As the name suggests, Arte will have strong elements of artistic living and art architecture. The Art Series brand is the new addition to the existing category of Signature Homes and Contemporary Homes,” said Nusmetro managing director Thomas Chan.

What makes Arte unique is its strong product differentiation, be it from artistic architecture to unique interior design of its lobby to the egg shape pavilion lounge.

“Sculptures from renowned names like Sculptura, Frank Woo and designer lighting names like Artemide and Tom Dixon are fitted into the lobby and lounges of Arte to give the project a distinctive identity.”

This development is the first of its kind in terms of architecture. Functionality of space was also given much thought as every unit, in two blocks of 23 and 25 storeys, comes with a private lift lobby and most units adopt a wide angle layout concept with a 7.62m-wide balcony which promotes spaciousness of space.

“Arte, with its low density of only 250 units and 15 different types of layout, is designed to promote uniqueness and strong capital appreciation as there are limited units within each type of layout,” added Chan.

Why art? “I travel quite a bit so wherever I visit, I always bring back some ideas to include in our developments,” he said.

The price for each unit starts at RM380 per square feet.

“The pricing for our Arte series is competitive and the 50% release to its registered buyers have been fully sold prior to this weekend launch,” said Chan.

Arte@Kuchai Lama is due to be completed in the third quarter of 2014.

“We are instrumental in creating unique and specialised units so as to not make them identical like what you would find in other condominiums. It is an expensive move to incorporate into the development but we think it will increase capital appreciation,” said Chan.

With a track record of completed properties exceeding 5,000 units valued over RM1.5bil, Nusmetro’s philosophy of Branding Homes is poised to carve its name in the local property scene.

The launching this weekend will be at the Nusmetro sales office in Unit 105 & 106, Block E, Phileo Damansara 1, Jalan 16/11, off Jalan Damansara, Petaling Jaya, from 9am to 6pm (Saturday and Sunday).

By The Star

New commercial project in Cyberjaya

Property developer, Glomac Berhad is launching a freehold commercial project in Cyberjaya at the end of this month.

The site for Glomac Cyberjaya 2 was acquired shortly after the highly successful launch in its maiden project in Cyberjaya.

“To further capitalise the momentum and success of Glomac Cyberjaya Phase 1 & 2 and to continue to develop more shop offices, we acquired the adjacent second plot of land due to its successful take-up rate,” said Glomac group managing director/CEO Datuk FD Iskandar.

Glomac Cyberjaya Phase 1 & 2, which sits on part of the 3.64ha tract, features 63 units of three-storey shop offices is fully sold. It is due to be completed by end of this year.

Glomac Cyberjaya 2 will consist of 55 units of three-storey, three- and-a-half and four-and-half-storey of shop offices and a 24-storey office tower, each with a sophisticated modern facade that more than match its illustrious surrounding neighbours.

The built area is from 3,300sq ft onwards and the range of price starts from RM1.29mil onwards.

This development will present a wider range of investment opportunities that are ideally suited for small to medium-sized businesses seeking a stylish business address in the heart of Cyberjaya.

The entire development of Glomac Cyberjaya is strategically located along Persiaran Apec.

This ideal development is within the address of technological excellence, Cyberjaya, with HSBC, Ericsson, IBM and DHL as its surrounding neighbours.

For more information, call 03-7801 9000.

By The Star

Garden-themed M City sold out

Mah Sing Group has garnered RM412mil sales from its garden-themed mixed development, M City Jalan Ampang which is located less than 5km from KLCC.

First previewed in June this year, all 401 units of designer SoHo (small office, home office) suites worth RM295mil have been taken up.

Response to the 24 retail units worth RM117mil launched a few weeks ago has also been overwhelming, with the 15 units of three-storey boutique retail, four units of single level retail, four kiosks and supermarket fully sold.

The 39,000sq ft supermarket was acquired by gourmet supermarket chain Village Grocer.

“The location and concept of M City dovetail with the business strategy for our gourmet supermarkets,” said Village Grocer managing director Ong Kim Too.

“We operate in prime developments as anchor retailer/tenant, at sites with a concentration of our target customers,” he added.

A mixed development comprising designer SoHo suites, residential suites, sky villas and boutique retail, M City Jalan Ampang which sits on a 2.02ha freehold site has an estimated gross development value of RM1.4bil.

Located along the famed Embassy Row, M City is a stone’s throw away from Ampang Point which has a proposed MRT station, and is less than 2km away from Gleneagles Hospital, Great Eastern Mall and M Suites. With such an attractive location, there is a catchment of more than 500,000 from the surrounding matured developments.

Mah Sing group managing director Tan Sri Leong Hoy Kum said, “M City is Kuala Lumpur city’s one and only garden city community, and the first ever to boast multi-level thematic hanging gardens in Malaysia.

“We have various thematic hanging gardens spanning over 1.61ha for every sixth floor, with concepts such as sky garden, tropical sanctuary, spring park, bamboo groove and lagoon park which has become the talk of the town and a key selling point. A four-tier clubhouse houses a gymnasium and an infinity pool with an excellent city and lake view has been planned for the enjoyment of residents. The project is also designed to achieve the Green Building Index (GBI) Gold standard by increasing the efficiency of resource usage.”

More than 2,500 parking bays have been allocated for residents, tenants and visitors of M City, with separated residential and commercial parking lots and parking entry points.

He added, “We have carefully planned the project and most of the units are smaller sizes to meet current market need. With such good response to our SoHo and retail units, we intend to launch our residential suites in our sales gallery in Icon Jalan Tun Razak soon.”

The new launch are residential suites priced from RM550,000.

Buyers shall be spoilt for choice with the numerous configurations available, from studio units (506sqft) priced from RM550,000, 1 bedroom (674sqft), 2 bedroom (886sqft) and 3 bedroom units (1,653sqft). All these options are also available as duplex units to ensure that discerning buyers can get exactly what they need.

These units are semi-furnished and amongst the furnishings and electrical appliances to be provided by Mah Sing include bedroom wardrobe and vanity cabinet with mirror, kitchen cabinets, air conditioners, refrigerator, washer cum dryer, microwave oven, built in hood and hob as well as water heaters. Mah Sing shall also absorb the legal fees for sales and purchase agreement.

By The Star

Axis REIT to buy property from DHL for RM48.5m

Axis Real Estate Investment Trust has proposed to buy a three-storey office and warehouse in Penang from DHL Properties (Malaysia) Sdn Bhd for RM48.5 million to expand its business.

At the same time, Axis will lease the property back to DHL for five years. It will have an option to renew the lease for another five years.

"The acquisition is accretive with an unleveraged triple net yield of 8 per cent which will have a long term benefit to the Fund.

"Furthermore the lease has annual built in rental growth which will enhance earnings," Stewart LaBrooy, chief executive officer of Axis REIT Managers Bhd, said in a statement.

The property, located in Bayan Lepas, has a gross built up of some 231,940 sq ft and comes with a 60 year leasehold title which will expire in 2062.

Axis-REIT will use existing bank loans to fund the deal. This will raise its gearing level to 40 per cent.

The latest purchase will boost the fund's asset under management to over RM1.39 billion, upon completion by December 31, 2011.

By Business Times

Kosmopolito to launch five hotels

Expansion plan: Kosmopolito inte nds to develop service apartments on a site near the Dorsett Regency Kuala Lumpur.

KUALA LUMPUR: Kosmopolito Hotels International Ltd (KHI), which has 17 hotels primarily in Asia, has at least five ongoing projects in Malaysia that it plans to launch within the next 12 to 24 months.

KHI vice-chairman Datin Jasmine Abdullah Heng said the company was also looking for land in Malaysia to set up either hotels or serviced apartments.

“We would have more (than five projects) in the pipeline if we can secure the land,” she told StarBiz during a donation ceremony and visit to the National Heart Institute (IJN) on Tuesday.

Its ongoing Malaysian projects include the renovation of Phoenix Plaza in Cheras and the renovation of the Sri Jati serviced apartments in Kuala Lumpur into a hotel cum service apartments.

Jasmine also said KHI intended to develop service apartments on a site near the Dorsett Regency Kuala Lumpur.

“We also plan to launch service apartments within the Grand Dorsett Subang area by year-end and (also) have an on-going project in Sri Hartamas (in Kuala Lumpur),” she said.

“We are also looking at potential projects in Kota Kinabalu (Sabah), Penang, Langkawi, Kuantan (Pahang) and Malacca. We're aggressive on our expansion plans,” she added.

KHI, a subsidiary of Far East Consortium International Ltd (FEC), was set up in January 2007 and listed on the Hong Kong Stock Exchange in October 2010.

The company owns and manages four key hotel brands in different market segments Boutique Series by Kosmopolito, Grand Dorsett, Dorsett Regency Hotels & Resorts, and Silka Hotels, which can be found in Hong Kong, Shanghai, Chengdu, Wuhan, Singapore, Malaysia and London.

On the local front, KHI's properties are the Grand Dorsett Subang, Dorsett Regency Kuala Lumpur, Grand Dorsett Labuan, Silka Hotel Johor Bahru, Maytower Hotel & Serviced Residences Kuala Lumpur and Damas Suites & Residences Kuala Lumpur.

Jasmine declined to comment on an old report that FEC was planning on a real estate investment trust (REIT) listing that would include the Malaysian properties.

Meanwhile, KHI on Tuesday donated RM6,000 to IJN as part of the former's corporate social responsibility initiative. Earlier this year, the National Heart Institute received a donation amounting RM30,000 from KHI.


Chiu will be elected president of the company effective Nov 1

KHI executive director Winnie Chiu, who will be elected president of the company effective Nov 1, said: “We are committed to this good cause. We're supportive of this and will continue to support (IJN) going forward.”

By The Star

KL Metropolis expected to woo RM3.5b foreign investments

Foreign companies may invest that amount to build properties, either on their own or in partnership with Naza TTDI

KUALA LUMPUR: The Naza Group's KL Metropolis project is expected to lure foreign investments of some RM3.5 billion over its 15-year development period.

Foreign companies may invest that amount to build properties, either on their own or in partnership with Naza TTDI Sdn Bhd, the property arm of Naza Group.

"While we can build the structures on our own, we want to give opportunities to others for transfer of technology and expertise," Naza TTDI group managing director SM Faliq SM Nasimuddin said af-ter the project's launch on Tuesday.

The RM15 billion project is located next to the existing Matrade building off Jalan Duta and is touted as a new business district.

It will feature 22 office and residential towers, which include a 100-storey building and three hotels, as well as the new one million sq ft Matrade centre and two retail centres with more than two million sq ft of space on 30 hectares.

Launched by Datuk Seri Mustapa Mohamed, the Minister of International Trade and Industry (Miti), the project will be developed in three phases.

Phase 1 will comprise the exhibition centre, two residential towers, two hotels, two office towers and a retail centre, worth a combined RM6 billion.

Faliq said tenders to cons-truct the buildings will be called next month. It has appointed a local contractor to do the piling work.

Naza TTDI will borrow from banks and use internal funds for the initial stages of development, after which it may raise more money from a bond sale. The company is expected to invest RM500 million on infrastructure alone.

"We aim to complete Phase 1 by 2014/2015," he said.

Naza TTDI is already in talks with several foreign investors to build the retail and com-mercial properties in a joint venture.

It is also in discussions with a few five-star international hotels and mall operators to manage some of its properties.

"We are seeking five-star hotel operators and good retail partners for the project. We want to make this a world-class business and tourist destination," Faliq said.

Naza TTDI will announce several deals before the end of this year or early next year.

Faliq said Phase 2, which will start in 2015, will have five residential towers, three office blocks, a boutique hotel, a healthcare centre and the 100-storey building, worth RM4 billion.

Phase 3, worth RM5 billion, will start in 2019, consisting of three residential towers, three office buildings and a retail centre, he added.

“We have attracted a lot of local and foreign interest for this project, repositioning Malaysia on the world map. We expect several en bloc deals coming in,” Faliq said.

KL Metropolis is designed to Malaysia’s Green Building Index requirement and is also the first registered LEED for Neighbourhood project in Malaysia.

The LEED certification is an internationally-recognised green rating system that incorporates the principles of smart growth, urbanism and green building.

By Business Times

Naza TTDI's next step is to get listed

KUALA LUMPUR: After launching its biggest property project so far, Naza Group is aiming to list its property unit on the local stock market in about three years.

Naza TTDI Sdn Bhd's initial public offering (IPO) is also expected to be among the largest property IPOs on Bursa Malaysia, joint group executive chairman SM Nasarudin SM Nasimuddin told Business Times.

"Now that we have launched KL Metropolis, the next step is to take Naza TTDI to new heights and to do that, we will need the IPO," he said on Tuesday after the launch of the project by Minister of International Trade and Industry Datuk Seri Mustapa Mohamed.

Business Times first reported that Naza TTDI wanted to list in 2008 but this was postponed due to weak market conditions and also because it wanted to build its asset base.

It had hired CIMB Investment Bank Bhd to arrange the IPO and planned to raise more than RM1 billion.

"With the KL Metropolis development, Naza TTDI is a step closer to becoming a sizeable property group," Nasarudin said.

Naza Group, founded by the late Tan Sri Nasimuddin Amin in 1974, is well-known as an automotive player. It ventured into property development by acquiring Naza TTDI more than five years ago.

Meanwhile, Naza TTDI is well-known for the development of Taman Tun Dr Ismail in Kuala Lumpur.

KL Metropolis is currently the single biggest integrated mixed development in Kuala Lumpur for Naza TTDI and piling work has started.

The RM15 billion development is almost four times bigger than Naza TTDI's ongoing Platinum Park project in the Kuala Lumpur city centre, which is worth RM4 billion.

KL Metropolis will have 18 40-storey office and residential towers, a 100-storey building and three hotels, as well as the new one-million-sq-ft Matrade centre and two retail centres with more than two million sq ft of space.

By Business Times

Axis REIT to buy RM48.5m assets

KUALA LUMPUR: Axis Real Estate Investment Trust (REIT) has proposed an acquisition and leaseback of a three-storey office block and a logistic warehouse complex for RM48.5mil cash from DHL Properties (M) Sdn Bhd.

The agreement was entered into by OSK Trustee Bhd, the trustee for Axis REIT.

The 3.083ha land is located in Barat Daya district, Penang, Axis REIT said in a statement on Tuesday.

“The proposed acquisition and leaseback of the properties is consistent with the investment objective and strategy of Axis REIT and it will be accretive to Axis REIT's distributable income.

“It will also diversify and enlarge Axis REIT's portfolio of properties and is expected to benefit in the long term from economies of scale,” it said.

By Bernama

Kuala Terengganu City Centre to give real estate a boost

KUALA LUMPUR : The Kuala Terengganu City Centre (KTCC) project by the East Coast Economic Region Development Council (ECERDC) will have a significant long-term impact on Terengganu’s property market.

The region will be able to attract more local and foreign investments into Terengganu’s real estate sector via this landmark development which has a gross development value of RM5 billion.

Foo Gee Jen, managing director of CH Williams Talhar & Wong, a renowned property consultancy, said KTCC’s trickle-down effect on the local property sector was already seen in Kuala Terengganu where the prices of land and homes had increased significantly.

By Bernama

KL Eco City to get off the ground early 2012

Kuala Lumpur: After more than a decade of delay, property developer SP Setia Bhd expects to start working on the RM6 billion KL Eco City, opposite Mid Valley Megamall in Kuala Lumpur, by early next year.

The land, where the development is to take place over 12 years, has been cleared and is currently vacant.

SP Setia first announced its intention to develop the land almost a decade ago, but had faced problems with squatters in the area, among other things.

In its filing to the stock exchange yesterday, SP Setia said Kuala Lumpur City Hall or Dewan Bandaraya Kuala Lumpur (DBKL) had finally formalised the privatisation of the 10ha cluster of land parcels in the Kampung Haji Abdullah Hukum area.

The land is being alienated to KL Eco City Sdn Bhd (KLEC), which is owned by SP Setia and Yayasan Gerakbakti Kebangsaan on a 60:40 basis.

With net saleable area of 5.7 million square feet, SP Setia proposes to build a retail podium, three boutique office blocks, strata-titled office suites, three office towers, three residential towers and a serviced apartment tower.

The proposed development will also include a new KTM Komuter train station that will be integrated with the existing Abdullah Hukum LRT station.

Railway Asset Corp (RAC) has mandated SP Setia to deposit RM42.09 million in land bond to ensure construction of the train station.

Under the privatisation agreement, SP Setia must pay DBKL RM105.92 million, less the premium already paid, over 36 months.

As soon as SP Setia starts construction, it has to deposit RM10.55 million as performance bond with DBKL.

It also has to cough up a minimum guaranteed profit of RM191.96 million for the proposed development.

These are in addition to the initial agreement that DBKL be taking 20 per cent of the project's net profits.

The privatisation is conditional upon SP Setia paying DBKL RM11.4 million, being the difference between the actual construction cost of the low medium cost Apartment Abdullah Hukum 1 and the purchase price offered to the squatter families on the DBKL land.

The deal also requires SP Setia to pay RM10.59 million, being 10 per cent of the residual land value and RM1.62 million, being the land value for Plot F of the DBKL cluster of land.

SP Setia said these payments to DBKL will not have a material effect on its gearing for the year ending October 2011.

SP Setia estimates the KL Eco City's gross development cost to total RM5 billion.

By Business Times

Naza seeks investors for RM15b project

Naza Group, Malaysia’s biggest luxury vehicle importer, is seeking to draw local and foreign investors for a proposed RM15 billion property project in Kuala Lumpur.

Naza is in talks with local and international investors who are “serious” in taking part in the project, which may include a 100-floor tower, Naza Group Joint Executive Chairman SM Nasarudin SM Nasimuddin told reporters in Kuala Lumpur today.

Naza won land rights in 2009 from the government in return for building an exhibition center. The company will develop the land in three phases over 15 years, it said in a statement.

By Bloomberg

SP Setia unit in development deal with KL mayor

PETALING JAYA: SP Setia Bhd's subsidiary KL Eco City Sdn Bhd (KLEC) has entered into a privatisation agreement with Datuk Bandar Kuala Lumpur for the development of about 24.88 acres in Kampung Haji Abdullah Hukum in Kuala Lumpur.

In a statement, SP Setia said the privatisation agreement was done in pursuant to a memorandum of understanding dated Aug 21, 2007 between the Datuk Bandar and KLEC, then known as Pelita Dunia Sdn Bhd.

SP Setia group owned 4.38 acres of the piece of land in Kampung Haji Abdullah Hukum, while Datuk Bandar owned the remaining 20.5 acres. KLEC has proposed to develop an integrated commercial and residential development with a net saleable area of about 5.7 million sq ft on the said land.

The proposed development, worth a gross development value of RM6bil and a gross development cost of RM5bil, would comprise a retail podium; three boutique office blocks; strata-titled office suites; three office towers; three residential towers and a service apartment tower.

By The Star

HK office space still costliest

HONG KONG: Hong Kong continues to be the most expensive place in the world to rent office space, according to research from a property brokerage.

And despite an expected slowdown over the next 12 months, Hong Kong would likely retain its world-leading position, Colliers International said yesterday.

Hong Kong again topped the rankings for the world’s most expensive cities to rent office space, ahead of London’s West End, Paris, Tokyo and the City of London, according to Colliers.

By Reuters