Two prominent developers are put in a tight spot after the owners of the land on which their development is to be carried out, abruptly end the agreements to sell the land.
Mah Sing Group Bhd and SP Setia Bhd see their potential projects in Pekeliling and Beranang respectively, disrupted but they are still keen to pursue them.
Earlier this week, the two companies separately announced that they might not be successful in acquiring the targeted parcels of land.
Analysts say the reason for the cancellation of the agreements could be because of dispute over the land price, which the owners claim is below the current market price.
According to an industry analyst, it would be a disappointment for Mah Sing to lose the project, but it would not be a major blow to the company as it has many other projects in the pipeline.
“Although Mah Sing would only develop four acres of the M Sentral project, it is also eyeing to be a partner for the rest of the Pekeliling concession land which spans 58 acres,” he says.
He says Mah Sing will fork out RM106.6mil for the four acres, which translates into RM600 per sq ft, while the average market value of land in Kuala Lumpur is between RM1,500 and RM2,000 per sq ft.
“I believe Mah Sing will re-negotiate with the landowners but it's too early to tell of the outcome,” he says.
On Tuesday, Mah Sing brushed aside its partners' claims that the joint venture agreement (JVA) for the proposed development on the four acres along Jalan Tun Razak has lapsed.
Mah Sing says Asie Sdn Bhd and Usaha Nusantara Sdn Bhd, through their solicitors, have taken the position that the JVA has lapsed and is of no effect from Dec 2.
Mah Sing, however, maintains that the JVA has not lapsed.According to an RHB Research report in August, Mah Sing has announced a 60:40 joint venture with Asie to develop the four acres of leasehold land along Jalan Tun Razak- Jalan Pahang into M Sentral - a mixed development with GDV of RM900mil.
The report says the site is formerly called the Tunku Abdul Rahman flats or commonly known as the Pekeliling flats, and that the land is ready for immediate development, given that demolition works and partial earthworks have been completed.
RHB Research says Mah Sing will pay RM106.6mil for the 4.08 acres, to be settled via 60% cash and a 40% stake of the JV company to Asie.
“Mah Sing may also be the potential JV partner for the rest of the Pekeliling concession land, which spans 58 acres which would be renamed the Riverside Garden City Mega Project with a potential GDV of RM9bil,” says RHB Research.
Meanwhile, Hong Leong Investment Bank says the financial impact of the Pekeliling project is uncertain, given that Mah Sing is busy with a number of projects including its flagship developments in Icon City and M City, and M Residence @ Rawang.
“Even if the JV is to be called off, we believe impact would be minimal, given Mah Sing's diligent land banking activities.
“Moreover, Mah Sing has enjoyed a record-setting year in sales, having hit RM2bil in October,” says Hong Leong Investment.
For SP Setia, another analyst says that it could be due to a disagreement in the quoted land price.
The vendor Ban Guan Hin Realty's 1,010.5 acre land in Beranang is purchased at RM330mil or RM7.50 per sq ft and SP Setia has bought a second parcel land in Beranang from Spektrum Megah at RM13 per sq ft.
“I believe SP Setia is ready to negotiate with Ban Guan Hin,” he says.
On Tuesday, SP Setia Bhd announced that its request for an extension to fulfill some conditions for its proposed acquisition of 1,010.5 acres in Ulu Langat, Selangor for RM330.1mil was not agreeable by Ban Guan Hin.
In filing with Bursa Malaysia, SP Setia said the conditions for the land buy included an approval from the Estate Land Board for the sale and transfer of the land.
It is currently seeking legal advice on its position under the sale and purchase agreement and will seek an appropriate relief from the court, if necessary.
SP Setia has planned a mixed development project and is committed to build starter homes priced from RM300,000.
The development of the land, which will be named Setia Emas, is estimated to have a GDV of RM3.5bil.
A ramp has been planned to connect to the Lekas highway.
“While we will not know the outcome of the tussle', we highlight that in the event that SP Setia is unable to win the case, our RNAV/share estimate will be eroded by 9.1 sen from the current RM4.15, after excluding the contribution of Setia Emas.
“Thus far, SP Setia has only paid 10% deposit, and it is refundable since the fulfilment period has lapsed,” says RHB Research.
By The Star
Saturday, December 17, 2011
L&G property unit gets RM90mil credit facility
KUALA LUMPUR: Land & General Bhd (L&G) subsidiary Sri Damansara Sdn Bhd has secured RM90mil credit facility from OCBC Bank (Malaysia) Bhd.
The facility was to enable the company to undertake a condominium project, called Damansara Foresta in Bandar Sri Damansara, and for general working capital, it said in a filing with Bursa Malaysia.
Sri Damansara, a property development company, has an issued capital RM69mil.
By Bernama
The facility was to enable the company to undertake a condominium project, called Damansara Foresta in Bandar Sri Damansara, and for general working capital, it said in a filing with Bursa Malaysia.
Sri Damansara, a property development company, has an issued capital RM69mil.
By Bernama
Friday, December 16, 2011
Malaysia property mart expected to moderate next year
KUALA LUMPUR: The property market is expected to moderate in 2012 due to continued slowdown in global economy amid growing concerns on the Eurozone debt.
The uncertainty in the market in view of the impact from the upcoming 13th general election will also influence the expected lacklustre performance in the property sector next year.
Association of Valuers, Property Managers, Estate Agents and Property Consultants in the Private Sector (PEPS) immediate past president James Wong said he expects banks to be more conscious in loan approval next year as loan eligibility is now based on net income as compared to gross income previously.
"Over the years, property sector experienced oversupply of product, especially in the high-end condominium and offices. In addition to other factors that were mentioned, we expect to see a dip in property market performance next year," Wong said.
During the first half of this year, the property market registered an overwhelming 214,764 transactions worth RM64.75 billion. This represents a growth of 18 per cent and 29.7 per cent respectively against the same period in 2010.
"The year 2010 was acknowledged by all as a good year for the residential sector, which was then reflected in the volume and value of transactions," said Wong.
The market was expected to soften this year but it went against the odds, spurred by government projects, especially those under the Economic Transformation Programme (ETP).
PEPS president Choy Yue Kwong said the world is concerned with the possible contagion effect of the Eurozone financial crisis.
"Locally, home property prices have risen significantly over the past two and a half years and the market is concerned if there will be a property bubble," Choy said.
He said these are among the issues that will be discussed in the upcoming Fifth Malaysian Property Summit 2012 (5MPS), which will be held on January 17 next year.
PEPS, which is the organiser of 5MPS, has lined up eminent speakers like Knight and Frank Malaysia managing director Eric YH Ooi, KGV International Property Consultants (M) Sdn Bhd executive director Anthony Chua Kian Beng and deputy managing director CH Williams Talhar and Wong Sdn Bhd Danny SK Yeo. - By Zurinna Raja Adam
By Business Times
The uncertainty in the market in view of the impact from the upcoming 13th general election will also influence the expected lacklustre performance in the property sector next year.
Association of Valuers, Property Managers, Estate Agents and Property Consultants in the Private Sector (PEPS) immediate past president James Wong said he expects banks to be more conscious in loan approval next year as loan eligibility is now based on net income as compared to gross income previously.
"Over the years, property sector experienced oversupply of product, especially in the high-end condominium and offices. In addition to other factors that were mentioned, we expect to see a dip in property market performance next year," Wong said.
During the first half of this year, the property market registered an overwhelming 214,764 transactions worth RM64.75 billion. This represents a growth of 18 per cent and 29.7 per cent respectively against the same period in 2010.
"The year 2010 was acknowledged by all as a good year for the residential sector, which was then reflected in the volume and value of transactions," said Wong.
The market was expected to soften this year but it went against the odds, spurred by government projects, especially those under the Economic Transformation Programme (ETP).
PEPS president Choy Yue Kwong said the world is concerned with the possible contagion effect of the Eurozone financial crisis.
"Locally, home property prices have risen significantly over the past two and a half years and the market is concerned if there will be a property bubble," Choy said.
He said these are among the issues that will be discussed in the upcoming Fifth Malaysian Property Summit 2012 (5MPS), which will be held on January 17 next year.
PEPS, which is the organiser of 5MPS, has lined up eminent speakers like Knight and Frank Malaysia managing director Eric YH Ooi, KGV International Property Consultants (M) Sdn Bhd executive director Anthony Chua Kian Beng and deputy managing director CH Williams Talhar and Wong Sdn Bhd Danny SK Yeo. - By Zurinna Raja Adam
By Business Times
Hunza plans RM7b Penang project
GEORGE TOWN: Hunza Properties Bhd will submit plans to the local authorities next year for a mixed-development project in Bayan Baru with a gross development value (GDV) of RM6bil to RM7bil.
Executive chairman Datuk Khor Teng Tong told a press conference after the company's AGM that the group had engaged a couple of architects from Singapore to draw a master plan for the project sited on over 16.2ha, opposite the Bukit Jambul Complex.
Khor said the group had just acquired 2ha for the development of 1,000 units of low-cost homes for the households currently occupying the over 16.2ha site.
“We have initiated steps to obtain approval from the local authorities to develop the low-cost homes. Once the approval is obtained, it will take about 18 months to complete the low-cost project,” he said.
On the Gurney Paragon Mall, Khor said the second phase of the project would be completed next year-end and would open in March 2013. The second phase, comprising the corporate headquarters and shopping mall, was now 50% completed.
“The first phase has been completed with certificate of fitness obtained,” Khor said.
By The Star
Executive chairman Datuk Khor Teng Tong told a press conference after the company's AGM that the group had engaged a couple of architects from Singapore to draw a master plan for the project sited on over 16.2ha, opposite the Bukit Jambul Complex.
Khor said the group had just acquired 2ha for the development of 1,000 units of low-cost homes for the households currently occupying the over 16.2ha site.
“We have initiated steps to obtain approval from the local authorities to develop the low-cost homes. Once the approval is obtained, it will take about 18 months to complete the low-cost project,” he said.
On the Gurney Paragon Mall, Khor said the second phase of the project would be completed next year-end and would open in March 2013. The second phase, comprising the corporate headquarters and shopping mall, was now 50% completed.
“The first phase has been completed with certificate of fitness obtained,” Khor said.
By The Star
Hunza to submit Bayan Baru plan mid-2012
The company's executive chairman Datuk Khor Teng Tong yesterday said that international consultants have begun working on a masterplan for the development, which is expected to carry a development value of between RM6 billion and RM7 billion.
The company had purchased 16.9 ha of prime land in Bayan Baru for RM82 million.
"Our plans will be in tandem with the Penang state goverment's vision to turn the island state into an international city," Khor told reporters after the company's annual shareholders meeting.
Khor said the company has initiated getting the necessary approvals from the state authorities to build affordable housing units for squatters affected by the proposed project.
"Over and above the 16.9ha land, we also purchased 1.6 ha in the surrounding area in order to build around 1,000 low-cost units to house the affected squatters," he added.
"Once all approvals are obtained, we expect to complete building the affordable homes within 18 months."
Khor also said the Gurney Paragon condominiums, which are located at the sea-fronting Gurney Drive promenade, are now 70 per cent sold with its certificate of fitness for occupation obtained in June this year.
"Construction work on our Gurney Paragon lifestyle shopping mall continues and is targeted for completion during the second half of 2012," he said, adding that the first phase of the Gurney Paragon mall (which comprises food and beverage outlets housed in the historical St Joseph's Novitiate premises) will open soon.
He added that HPB's leasing team has been tasked with ensuring an optimum tenant mix and one of the main features of the new mall would be to bring in established shops and operators that are not present in Penang as yet.
For its 2011 financial year ended June 30, HPB recorded RM63.7 million in net profit after tax and minority interest. This compares with RM50.9 million during the previous corresponding year.
By Business Times
Zero in on luxury houses in Shah Alam
BREAKING away from the conventional semi-detached houses is the zero-lot concept.
Purchasing a zero-lot home is soon becoming a popular choice among house buyers as these units look similar to a bungalow.
Focal Aims Land Holdings Berhad group general manager Shawn Yee explained that the zero-lot concept meant one side of the house had its side wall close to the boundary while the adjoining house is set back from the same boundary.
“At a glance you do not even realise it is a semi-detached unit because each house looks exactly like a bungalow with a garden to accompany it,” he said when explaining the Johor-based company’s latest development, the Saujana O-lot in Shah Alam.
Built on a 10.48ha hilltop overlooking the Federal Highway, the 48 houses come in two designs — D-Villa and SD-Villa.
Yee said D-Villa has a minimum built-up area of 4,437sq ft while SD-Villa only has a minimum built up of 3,572 sq ft.
The difference between the two villas are not just in size but in exclusivity as only three D-Villas are available with a starting price of RM2.8mil.
The remaining 45 units are in the SD-Villa range, which offers a starting price of RM1.6mil.
Residents of Saujana O-lot need not worry about recreational spots or shopping centres given its location just off the Federal Highway.
“Just minutes away is the Glenmarie Golf Club, Saujana Golf Club and Subang Golf and Country Club,” he said.
Shopping centres and hypermarkets such as Carrefour, Subang Parade, Citta Mall and Empire Subang are also located nearby.
Those who enjoy walking or running around the neighbourhood can utilise its jogging paths and pedestrian footpaths built around lush garden hedges and beautifully-landscaped water features along the gated-and-guarded area.
On accessibility, residents can get home from their work place through the New Klang Expressway, Damansara-Puchong Highway and Federal Highway.
For details, visit the Focal Aims Land office at Peremba Square, Shah Alam or call 03-7622 9983.
By The Star
SP Setia still eyeing UK property mart
SP Setia Bhd is still planning to invest in the UK property market and will be forming a consortium with Malaysian investors after securing projects to help develop them, its chief said.
"We learned a lot of things from our failure (in bidding for a project) in London. Now we know how the system there works. We are not reckless ... we will look at basic valuation for future projects," its president and chief executive officer Tan Sri Liew Kee Sin said.
SP Setia was in talks with Irish Group Real Estate Opportunities (REO) to acquire a stake in the redevelopment of the Battersea Power Station in south London.
The deal fell through as REO creditors REO had rejected its preliminary offer.
SP Setia had on November 18 instructed its investment adviser to submit a conditional non-binding preliminary offer to buy from Lloyds Banking Group plc and the National Asset Management Agency, the senior debt facilities and the swap exposure and other related claims in the Battersea Power Station site and its holding company for around RM1.3 billion.
Liew said despite the aborted deal, SP Setia still believes that property development prospects in London are positive and it will continue looking for investment opportunities.
"Looking at the situation today, we must look out of Malaysia to invest. We must be world leaders like Petronas and Tan Sri Tony Fernandes but don't be reckless in what you plan to do," he said yesterday after SP Setia's extraordinary general meeting (EGM).
Liew said the firm's long-term plan is to seek opportunities to invest in the property market in Australia and Malaysia, besides London.
SP Setia's recent success in penetrating the competitive Australian property market with the launch of its Fulton Lane project in Melbourne's central business district has given the company the confidence to explore other strategic global cities.
"We have no plans for merger and acquisition. We will continue to grow the company by buying land, launching new products and selling them," he said.
SP Setia is targeting RM4 billion in sales for fiscal 2012, driven by local and foreign property sales.
At the EGM, Liew said shareholders agreed to SP Setia's plan to acquire the remaining 40 per cent stake in the RM6 billion KL Eco City project from Yayasan Gerakbakti Kebangsaan.
"Now that we control 100 per cent of KL Eco City, there will be better prospects for SP Setia from this project," he said.
By Business Times
"We learned a lot of things from our failure (in bidding for a project) in London. Now we know how the system there works. We are not reckless ... we will look at basic valuation for future projects," its president and chief executive officer Tan Sri Liew Kee Sin said.
SP Setia was in talks with Irish Group Real Estate Opportunities (REO) to acquire a stake in the redevelopment of the Battersea Power Station in south London.
The deal fell through as REO creditors REO had rejected its preliminary offer.
SP Setia had on November 18 instructed its investment adviser to submit a conditional non-binding preliminary offer to buy from Lloyds Banking Group plc and the National Asset Management Agency, the senior debt facilities and the swap exposure and other related claims in the Battersea Power Station site and its holding company for around RM1.3 billion.
Liew said despite the aborted deal, SP Setia still believes that property development prospects in London are positive and it will continue looking for investment opportunities.
"Looking at the situation today, we must look out of Malaysia to invest. We must be world leaders like Petronas and Tan Sri Tony Fernandes but don't be reckless in what you plan to do," he said yesterday after SP Setia's extraordinary general meeting (EGM).
Liew said the firm's long-term plan is to seek opportunities to invest in the property market in Australia and Malaysia, besides London.
SP Setia's recent success in penetrating the competitive Australian property market with the launch of its Fulton Lane project in Melbourne's central business district has given the company the confidence to explore other strategic global cities.
"We have no plans for merger and acquisition. We will continue to grow the company by buying land, launching new products and selling them," he said.
SP Setia is targeting RM4 billion in sales for fiscal 2012, driven by local and foreign property sales.
At the EGM, Liew said shareholders agreed to SP Setia's plan to acquire the remaining 40 per cent stake in the RM6 billion KL Eco City project from Yayasan Gerakbakti Kebangsaan.
"Now that we control 100 per cent of KL Eco City, there will be better prospects for SP Setia from this project," he said.
By Business Times
Thursday, December 15, 2011
UDA to review plan to divide Pudu jail site
Unlocking value: The proposed transportation hub is capable of accommodating 200,000 to 300,000 commuters daily and complements the existing monorail and LRT facilities on the Pudu Jail site.
KUALA LUMPUR: UDA Holdings Bhd will review the Finance Ministry’s (MoF) proposal to divide into three plots the former Pudu Jail site, better known as the Bukit Bintang City Centre (BBCC), to maximise the value of the land.
Chairman Datuk Nur Jazlan Mohamed said a study on the matter was being conducted by a special committee chaired by an UDA board member.
Previously, MoF had ordered UDA to divide the former Pudu jail land, or BBCC into three plots with two to be given to local bumiputra companies and the remainder to a non-bumiputra entity.
The directive was issued after MoF did not consider UDA’s proposal to appoint a China’s government-linked company, Everbright International Construction Engineering Corp, as its joint-venture partner for the project. The plan involves a foreign direct investment valued at nearly RM4bil.
Nur Jazlan said the special committee which reports directly to the UDA board of directors would use the model proposed by Everbright as a benchmark for any form of implementation of BBCC project.
He said the proposed model would be the best solution as it gave the best return in terms of assets and recurring income to guarantee UDA’s sustainability in the future.
“I understand and respect the decision made by MoF on the basis of giving priority to bumiputras and UDA as a bumiputra company would never marginalise the agenda.
“Therefore, we believe the implementation of the development cannot be done hastily and in-depth study should be conducted to meet the needs of UDA and MoF as the main shareholders of the company,” Nur Jazlan said.
He said the planning for the development of the 20-acre had to be made carefully and without haste because the survival of UDA and almost 1,400 of its employees depended on its successful implementation.
UDA also said its transport consultant indicated that the site was suitable for a transportation hub. Therefore, a a big bus terminal and other properties in BBCC would be built around the transportation hub.
Nur Jazlan said the proposed transportation hub would be able to accommodate 200,000 to 300,000 commuters daily and complemented the existing monorail and LRT facilities on the Pudu Jail site.
The transport hub would also help to ease vehicle congestion in Kuala Lumpur’s golden triangle area.
By The Star
UDA to review plan to divide BBCC site
KUALA LUMPUR: UDA Holdings Bhd will be reviewing the proposal by Ministry of Finance (MoF) to divide the former Pudu Jail site, better known as Bukit Bintang City Centre (BBCC) into three plots, to ensure the value of the land can be maximised.
UDA chairman Datuk Nur Jaz-lan Mohamed said the study is being conducted by a special committee chaired by a board member before it is presented to MoF for consideration.
He said the development of the 20 acres has to be made carefully and without haste because UDA's survival and almost 1,400 of its employees depends on its successful implementation.
"For UDA, this development marks the continuation of the company's survival for the future, and the board of directors has agreed that any form of development needs to prioritise UDA's interest first," Nur Jazlan said in a statement yesterday.
It was reported that the MoF had asked UDA to divide the former Pudu Jail land into three plots with two being given to Bumiputera companies and the remainder to a non-Bumi entity.
The directive was issued after the MoF did not consider UDA's proposal to appoint a China government-linked company, Everbright International Construction Engineering Corporation, as its joint venture partner for the land.
By Business Times
UDA chairman Datuk Nur Jaz-lan Mohamed said the study is being conducted by a special committee chaired by a board member before it is presented to MoF for consideration.
He said the development of the 20 acres has to be made carefully and without haste because UDA's survival and almost 1,400 of its employees depends on its successful implementation.
"For UDA, this development marks the continuation of the company's survival for the future, and the board of directors has agreed that any form of development needs to prioritise UDA's interest first," Nur Jazlan said in a statement yesterday.
It was reported that the MoF had asked UDA to divide the former Pudu Jail land into three plots with two being given to Bumiputera companies and the remainder to a non-Bumi entity.
The directive was issued after the MoF did not consider UDA's proposal to appoint a China government-linked company, Everbright International Construction Engineering Corporation, as its joint venture partner for the land.
By Business Times
Land acquisition hurdles highlight new challenges in property sector
PETALING JAYA: The recent snag that hit the projects of two property developer giants, Mah Sing Group Bhd and SP Setia Bhd highlights a new risk faced the sector in terms of landbanking activities.
On Tuesday, both SP Setia and Mah Sing separately announced that they might not successful in acquiring the targeted land parcels.
RHB Research believes that this could be due to the deals getting unattractive to the landowners who expected land value to further appreciate going forward.
“In SP Setia case, Guan Hin Realty, the vendor of a 1,010.5-acre in Beranang, has not agreed to an extension of the period for the fulfillment of the conditions precedent (CP) which include the requirement for the approval of the Estate Land Board for the sale and transfer of the land to the developer. SP Setia, as a result, is currently seeking legal advice,” it said in a report yesterday.
The land was purchased at RM330mil or RM7.50 per sq ft in August.
The development of the land, which will be named Setia Emas, is estimated to yield a gross development value of RM3.5bil.
“While we will not know the outcome of the tussle' yet, we highlight that if SP Setia is unable to win the case, our RNAV (revised net asset value)/share estimate will be eroded by 9.1 sen from the current RM4.15, after excluding the contribution of Setia Emas,” said the research house.
RHB Research said a second parcel in Beranang was acquired from Spektrum Megah, an unrelated party of Guan Hin Realty.
“Given that the acquisition price was higher at RM13 per sq ft, we think SP Setia should not have the same problem in completing the acquisition,” it said.
In the case of Mah Sing, it has encountered a snag in their 60:40 joint-venture (JV) agreement with Asie Sdn Bhd and Usaha Nusantara Sdn Bhd over the 4.08-acre acquisition at Pekeliling.
The vendors have taken the position that the JV agreement had lapsed on Dec 2 given that certain CP in it were not met.
Mah Sing, however, maintained that the agreement had not lapsed, given that they had waived certain CP.
Under the JV agreement, Mah Sing is to undertake a RM900mil mixed development on the Pekeliling land.
Hong Leong Investment Bank said while details were sketchy at this juncture, it believed the hiccup could be legal in nature than commercial.
“Timeline is also an uncertainty given that their JV agreement with the vendor has previously been delayed.
“However, even if the JV were to be called off, we believe impact would be minimal, given their diligent landbanking activities, it said.
Moreover, Mah Sing had enjoyed a record-setting year in sales, having hit RM2bil sales in October,” it said in a report.
By The Star
On Tuesday, both SP Setia and Mah Sing separately announced that they might not successful in acquiring the targeted land parcels.
RHB Research believes that this could be due to the deals getting unattractive to the landowners who expected land value to further appreciate going forward.
“In SP Setia case, Guan Hin Realty, the vendor of a 1,010.5-acre in Beranang, has not agreed to an extension of the period for the fulfillment of the conditions precedent (CP) which include the requirement for the approval of the Estate Land Board for the sale and transfer of the land to the developer. SP Setia, as a result, is currently seeking legal advice,” it said in a report yesterday.
The land was purchased at RM330mil or RM7.50 per sq ft in August.
The development of the land, which will be named Setia Emas, is estimated to yield a gross development value of RM3.5bil.
“While we will not know the outcome of the tussle' yet, we highlight that if SP Setia is unable to win the case, our RNAV (revised net asset value)/share estimate will be eroded by 9.1 sen from the current RM4.15, after excluding the contribution of Setia Emas,” said the research house.
RHB Research said a second parcel in Beranang was acquired from Spektrum Megah, an unrelated party of Guan Hin Realty.
“Given that the acquisition price was higher at RM13 per sq ft, we think SP Setia should not have the same problem in completing the acquisition,” it said.
In the case of Mah Sing, it has encountered a snag in their 60:40 joint-venture (JV) agreement with Asie Sdn Bhd and Usaha Nusantara Sdn Bhd over the 4.08-acre acquisition at Pekeliling.
The vendors have taken the position that the JV agreement had lapsed on Dec 2 given that certain CP in it were not met.
Mah Sing, however, maintained that the agreement had not lapsed, given that they had waived certain CP.
Under the JV agreement, Mah Sing is to undertake a RM900mil mixed development on the Pekeliling land.
Hong Leong Investment Bank said while details were sketchy at this juncture, it believed the hiccup could be legal in nature than commercial.
“Timeline is also an uncertainty given that their JV agreement with the vendor has previously been delayed.
“However, even if the JV were to be called off, we believe impact would be minimal, given their diligent landbanking activities, it said.
Moreover, Mah Sing had enjoyed a record-setting year in sales, having hit RM2bil sales in October,” it said in a report.
By The Star
Teluk Segadas in Pangkor Island to undergo RM20mil development
The Pangkor Island skyline is set to undergo major changes following plans to develop a 121ha piece of idle land in Teluk Segadas into a tourist hub.
Mentri Besar Datuk Seri Dr Zambry Abdul Kadir said the project would consist of houses, which tourists could invest in, as well as boarding houses.
“There will be mixed development on the piece of land, which has been left idle for some 20 years now,” he told reporters after a working visit to the island recently.
Noting that the developer had recently met with him to discuss its plans for the site, Dr Zambry explained that the developer had been holding on to the piece of land due to lack of funding.
“Now that this has been settled, it is all systems go,” he said.
On another matter, Dr Zambry said the state would be setting up additional fishing villages on the island to accommodate its second generation of fishermen.
“Under Budget 2012, the Federal Government had allocated RM20mil for the purpose.
“We are in the process of identifying which are the suitable locations on the island to develop these villages,” he said, adding that fishing villages on the island were located at Teluk Gedong and at the end of Sungai Pinang Kecil, at present.
Dr Zambry also told reporters that the state Public Works Department had been tasked with ensuring public projects were delivered on time.
Citing the island’s RM70mil police station as an example, he said work had been delayed for several months due to a change in contractors.
“I want to see the project completed within the 18-month contract period,” he said, adding that the SM Pangkor hall was also being delayed.
By The Star
Mentri Besar Datuk Seri Dr Zambry Abdul Kadir said the project would consist of houses, which tourists could invest in, as well as boarding houses.
“There will be mixed development on the piece of land, which has been left idle for some 20 years now,” he told reporters after a working visit to the island recently.
Noting that the developer had recently met with him to discuss its plans for the site, Dr Zambry explained that the developer had been holding on to the piece of land due to lack of funding.
“Now that this has been settled, it is all systems go,” he said.
On another matter, Dr Zambry said the state would be setting up additional fishing villages on the island to accommodate its second generation of fishermen.
“Under Budget 2012, the Federal Government had allocated RM20mil for the purpose.
“We are in the process of identifying which are the suitable locations on the island to develop these villages,” he said, adding that fishing villages on the island were located at Teluk Gedong and at the end of Sungai Pinang Kecil, at present.
Dr Zambry also told reporters that the state Public Works Department had been tasked with ensuring public projects were delivered on time.
Citing the island’s RM70mil police station as an example, he said work had been delayed for several months due to a change in contractors.
“I want to see the project completed within the 18-month contract period,” he said, adding that the SM Pangkor hall was also being delayed.
By The Star
I-Bhd praised for roping in China investor
SHAH ALAM: The Selangor state government has applauded I-Bhd for successfully roping in a China company to invest in Selangor.
Mentri Besar Tan Sri Khalid Ibrahim said the state was very supportive of any investment into Selangor and would help to facilitate the investment between I-Bhd and Everbright International Construction Engineering Corp (EICEC) from China.
Both companies had on early this week inked an agreement to co-develop the remaining 30 acres in i-City, Shah Alam.
“The cooperation augurs well for the development of i-City and also to the people in Selangor,” he said during a briefing by I-Bhd regarding the cooperation with its Chinese counterpart yesterday. The briefing was carried out by group chief executive officer Datuk Eu Hong Chew.
Khalid was hoping to see more investment coming into the state and said that this year, about RM1.5bil worth of investments were recorded for the state.
The cooperation between the two companies would see Everbright holding a 70% stake in the deal while the remaining would be held by I-Bhd.
Under the agreement, Everbright would finance the entire construction and lead a consortium of China-based companies to set up operations in i-City, while I-Bhd would be responsible for providing the land, as well as ensuring that the subsequent development would continue to be certified as an MSC Malaysia Cybercentre and a tourism destination.
Everbright chairman and chief executive officer Zhang Huaipu said during the briefing that Everbright was seeking more investment opportunities in Malaysia and also would help to attract more Chinese companies to invest in Selangor.
He also said the group would help to woo more Chinese tourists to i-City.
The mix development on the 30 acre site would be undertaken in two phases, involving 14 acres of land taken up for the initial phase and the balance in the subsequent phase.
The total gross development value of the entire project is tagged at RM3.5bil and expected to be completed in 2020.
By The Star
Mentri Besar Tan Sri Khalid Ibrahim said the state was very supportive of any investment into Selangor and would help to facilitate the investment between I-Bhd and Everbright International Construction Engineering Corp (EICEC) from China.
Both companies had on early this week inked an agreement to co-develop the remaining 30 acres in i-City, Shah Alam.
“The cooperation augurs well for the development of i-City and also to the people in Selangor,” he said during a briefing by I-Bhd regarding the cooperation with its Chinese counterpart yesterday. The briefing was carried out by group chief executive officer Datuk Eu Hong Chew.
Khalid was hoping to see more investment coming into the state and said that this year, about RM1.5bil worth of investments were recorded for the state.
The cooperation between the two companies would see Everbright holding a 70% stake in the deal while the remaining would be held by I-Bhd.
Under the agreement, Everbright would finance the entire construction and lead a consortium of China-based companies to set up operations in i-City, while I-Bhd would be responsible for providing the land, as well as ensuring that the subsequent development would continue to be certified as an MSC Malaysia Cybercentre and a tourism destination.
Everbright chairman and chief executive officer Zhang Huaipu said during the briefing that Everbright was seeking more investment opportunities in Malaysia and also would help to attract more Chinese companies to invest in Selangor.
He also said the group would help to woo more Chinese tourists to i-City.
The mix development on the 30 acre site would be undertaken in two phases, involving 14 acres of land taken up for the initial phase and the balance in the subsequent phase.
The total gross development value of the entire project is tagged at RM3.5bil and expected to be completed in 2020.
By The Star
Mithril to sell office space for RM43mil
PETALING JAYA: Mithril Bhd is selling off 29 parcels of commercial office space in Menara MAA, Kota Kinabalu for RM43.2mil to repay its redeemable convertible secured loan stock (RCSLS).
Mithril is compelled to repay in full the outstanding amounts owing to the RCSLS holders.
In its filing with Bursa Malaysia, the company said the sale was “paramount to avoid an event of default under the terms of the trust deed and deeds of assignment of the RCSLS”.
The proposed disposal is expected to result in a consolidated after-tax loss on disposal of RM5.3mil and represents a discount of about 10.9% on the market value of the properties.
By The Star
Mithril is compelled to repay in full the outstanding amounts owing to the RCSLS holders.
In its filing with Bursa Malaysia, the company said the sale was “paramount to avoid an event of default under the terms of the trust deed and deeds of assignment of the RCSLS”.
The proposed disposal is expected to result in a consolidated after-tax loss on disposal of RM5.3mil and represents a discount of about 10.9% on the market value of the properties.
By The Star
Wednesday, December 14, 2011
Luxury island plan for Rebak
KUALA LUMPUR: DRB-HICOM Bhd is drafting plans to turn Pulau Rebak in Langkawi into a holiday magnet for the rich and famous.
The group wants to develop a "boutique" luxury holiday concept there to match the likes of The Residences at W Bali, Bvlgari Residences and Banyan Tree Ungasan in Bali, Six Senses Private Residences in Vietnam, The Yamu in Phuket, W Residence in Koh Samui and St Regis Saadiyat Island Resort in Abu Dhabi.
"The time has come for Malaysia to have luxury holiday residences that can woo the rich and the famous globally to pick Pulau Rebak as their preferred holiday destination," DRB-HICOM group managing director Datuk Seri Mohd Khamil Jamil said in a statement yesterday.
Mohd Khamil said Pulau Rebak's strategic location and the government's plan to upgrade the holiday haven to be on par with the world's top holiday islands would serve as a catalyst to its aspirations.
"The launch of the Langkawi Tourism Blueprint by Prime Minister Datuk Seri Najib Razak recently, entailing an estimated RM5 billion investment over the next five years, was a welcome initiative.
"I'm confident with the blueprint, coupled with the cooperation and participation of all parties, the government's estimate to double tourism revenue to RM3.8 billion via the arrival of three million tourists to Langkawi by 2015 will be realised," Mohd Khamil added.
The absence of an ultra luxury concept property development on a local holiday island has provided an opportunity for DRB-HICOM to explore the prospect, he said.
"We have been discussing the Pulau Rebak development plan since 2009 and the feedback received from international development consultants, residential property owners and world-class holiday companies is very encouraging," Khamil added.
By Business Times
RM78mil facelift for Singapore Marriott Hotel
New hotel rooms at the Singapore Marriott will have Eames Desk Chairs as dictated by Tang Holdings chairman Tang Wee Kit.
Tang Holdings will invest RM78.4mil (S$32 million) in the refurbishment of Singapore Marriott Hotel on Orchard Road. It is the largest renovation project to date, in the luxury hotel’s 16-year history, and is already underway with Phase One nearing completion.
“The Singapore Marriott Hotel is the crown jewel of Tang Holdings and with every treasure, it is imperative we keep it at its prime,” said Tang Holdings chairman and managing director Tang Wee Kit, who has added a personal touch to the refurbishment exercise. “The hotel has undergone significant refurbishments in the past but we deemed it time to overhaul a number of the spaces to ensure we retain our competitive edge.”
Phase One of the property renovation includes the make-over of the hotel lobby, now called the Marriott Great Room and removes traditional architectural barriers dividing the lobby space into warm open-plan zones where guests can choose to work, relax, drink or dine. The front desk is set against a dramatic, oriental-inspired fretwork, reflecting an Asian influence which interior design firm Hirsch Bedner Associates (HBA) will weave throughout the property, blending east with west.
The second phase of the renovation is currently in progress and consists of a major overhaul of the hotel’s popular Marriott Cafe, Crossroads Cafe and all guest rooms. The project will be completed by April next year.
Hotel general manager Antony Page said, “Our goal is to provide guests with a timeless experience during their stay with the Marriott. We want to create sophisticated and spacious rooms with all the amenities, a modern-day traveller would appreciate. For example, all 372 rooms will be smartly decorated with ergonomically optimised furniture and thoughtful state-of-the-art finishing, reflecting the key personalities of a savvy urban dweller – sophisticated, tasteful, and sleek.”
Rooms will take on a neutral colour palette with bold accent fabrics. Most notably bathrooms will be reconfigured to offer guests greater space with a large walk-in waterfall shower and resting bench as well as extended vanity area, while the newly-installed 46-inch Samsung Full-HD Smart TVs provide guests entertainment experiences. Two signature 1956 leather and enamelled Eames Desk Chairs will be a prominent feature in each new guest room, personally selected by Tang Wee Kit, who has worked closely with HBA to fulfill his desired new look.
A number of aesthetic changes will be made to Crossroads Cafe whilst Marriott Cafe will undergo a complete renovation.
The Singapore city centre hotel opened in 1995 and has been the recipient of a number of awards and accolades. The property recorded 39,243 guests in 2010 and will complete another successful year this month.
By The Star
S’pore loses lustre, investors considering other options like Hong Kong
SINGAPORE: The heavier stamp duties announced last week may have already dented Singapore's standing as a major property investment destination while giving rivals such as Hong Kong a boost, said analysts.
Britain-based consultancy Black Brick Property Solutions said it has received inquiries from Asian and overseas investors who had been thinking of investing in Singapore property, but who have been deterred by the new tax rules.
Other property agencies said they expected more clients to ask about their investment options after the festive period.
The new measures unveiled last week included an extra stamp duty of 10% on a home bought by a foreigner a move expected to dampen foreign demand while increasing interest in markets such as Britain and Hong Kong that do not have restrictions on foreign buyers.
Camilla Dell, managing director of Black Brick Property Solutions, said: “Stamp duty can be significantly reduced in Britain if the property is owned in a company name. Buyers pay very little or no tax on the acquisition.” She added that the tax system was more favourable, particularly for overseas investors who pay no seller's or capital gains tax if they were not British residents. This gives them a tax break of 28% when they sell their properties.
Julian Sedgewick, director of international residential sales at Savills, said: “London, in particular, could stand out because of the good currency exchange rate between the pound and the dollar”. The exchange rate is 1 to about S$2.
Hong Kong is looking attractive too, because of the government's adoption of a non-intervention policy, meaning no restrictions are placed on foreign property investments. Its government also recently said it might reverse some of the property cooling curbs if the economic situation worsens.
Another spin-off from the stamp duty move could be that foreign developers and agencies might get more aggressive marketing their properties here as investors in Singapore look elsewhere, said Chua Yang Liang, head of research at Jones Lang LaSalle (JLL).
Although local and foreign investors with a short-term outlook would have more of an appetite for properties outside of Singapore now, many analysts predict that the pool of foreign buyers in Singapore would not dry up. The Straits Times
These include buyers from Indonesia, Malaysia, India and China.
“Businesses are still investing in Singapore and the country is still considered an attractive place to work, live and visit,” said Chua.
By The Straits Times Singapore
Britain-based consultancy Black Brick Property Solutions said it has received inquiries from Asian and overseas investors who had been thinking of investing in Singapore property, but who have been deterred by the new tax rules.
Other property agencies said they expected more clients to ask about their investment options after the festive period.
The new measures unveiled last week included an extra stamp duty of 10% on a home bought by a foreigner a move expected to dampen foreign demand while increasing interest in markets such as Britain and Hong Kong that do not have restrictions on foreign buyers.
Camilla Dell, managing director of Black Brick Property Solutions, said: “Stamp duty can be significantly reduced in Britain if the property is owned in a company name. Buyers pay very little or no tax on the acquisition.” She added that the tax system was more favourable, particularly for overseas investors who pay no seller's or capital gains tax if they were not British residents. This gives them a tax break of 28% when they sell their properties.
Julian Sedgewick, director of international residential sales at Savills, said: “London, in particular, could stand out because of the good currency exchange rate between the pound and the dollar”. The exchange rate is 1 to about S$2.
Hong Kong is looking attractive too, because of the government's adoption of a non-intervention policy, meaning no restrictions are placed on foreign property investments. Its government also recently said it might reverse some of the property cooling curbs if the economic situation worsens.
Another spin-off from the stamp duty move could be that foreign developers and agencies might get more aggressive marketing their properties here as investors in Singapore look elsewhere, said Chua Yang Liang, head of research at Jones Lang LaSalle (JLL).
Although local and foreign investors with a short-term outlook would have more of an appetite for properties outside of Singapore now, many analysts predict that the pool of foreign buyers in Singapore would not dry up. The Straits Times
These include buyers from Indonesia, Malaysia, India and China.
“Businesses are still investing in Singapore and the country is still considered an attractive place to work, live and visit,” said Chua.
By The Straits Times Singapore
China's Everbright investing RM2bil in i-City
Working together: (from left) I-Bhd chairman Tan Sri Lim Kim Hong, China Enterprises Association in Malaysia president Zheng Jingbo, Chai, Chor and Zhang at the signing ceremony
PETALING JAYA: I-Bhd has entered into a 30:70 joint venture (JV) with Everbright International China to co-develop 30 acres in i-City, Shah Alam.
“The development will be done in two phases. Phase one, involving 14 acres with a GDV of RM1.5bil, will comprise a one-million-sq-ft shopping mall and two-million-sq-ft mixed residential, MSC (Multimedia Super Corridor) offices and educational institute.
“The second phase has a GDV of RM2bil involving 16 acres,” group CEO Datuk Eu Hong Chew said at the joint venture agreement signing ceremony yesterday. The event was witnessed by Housing and Local Government Minister Datuk Seri Chor Chee Heung and Chinese Ambassador Chai Xi.
Eu said phase one was expected to be completed in 2016 or 2017 while the whole project, with a GDV of RM3.5bil, was expected to be completed by 2020. Construction works are expected to start next year.
“We have developed half of i-City already and the balance would be developed by Everbright,” Eu said.
Apart from financing the construction, Everbright would also lead a consortium of Chinese companies to set up operations in i-City.
“We will be investing RM2bil with I-Bhd to develop i-City's commercial project,” Everbright chairman/CEO Zhang HuaiPu said.
There have been several major investments from China recently.
Last week. China's Shougang group announced a joint venture with Hiap Teck Venture Bhd to build an integrated steel complex in Kemaman, Terengganu.
Aluminium Corp of China has recently entered into a JV with Gulf International Investment Group Holdings Sdn Bhd and UAE-based business leader Mohamed Ali Rashed Alabbar to develop a US$1.6bil (RM5bil) aluminium smelting plant in Sarawak.
By The Star
I-Bhd in construction venture with Everbright
PETALING JAYA: I-Bhd yesterday entered into a strategic alliance with China-based Everbright International China to co-develop 12.14 hectares of land in i-City via a joint venture.
Everbright will have a 70 per cent shareholding in the venture. I-Bhd, in a statement here yesterday, said it will hold the balance stake.
Apart from financing the construction, Everbright will also lead a consortium of Chinese companies to set up operations in i-City, Shah Alam.
The development will be undertaken in two phases involving 5.66ha for the initial phase and the balance 6.47ha in the subsequent phase.
The first phase of the development is for a commercial hub with a gross development value of RM1.5 billion comprising a 92,903 sq m shopping mall and 185,206 sq m of mixed residential, MSC offices and educational institute.
By Bernama
Everbright will have a 70 per cent shareholding in the venture. I-Bhd, in a statement here yesterday, said it will hold the balance stake.
Apart from financing the construction, Everbright will also lead a consortium of Chinese companies to set up operations in i-City, Shah Alam.
The development will be undertaken in two phases involving 5.66ha for the initial phase and the balance 6.47ha in the subsequent phase.
The first phase of the development is for a commercial hub with a gross development value of RM1.5 billion comprising a 92,903 sq m shopping mall and 185,206 sq m of mixed residential, MSC offices and educational institute.
By Bernama
Mah Sing disputes JV partners’ claims
KUALA LUMPUR: Mah Sing Group Bhd has disputed its joint-venture partners' claims that the joint venture agreement (JVA) for the proposed joint-venture development on 4.08 acres along Jalan Tun Razak has lapsed.
Mah Sing said Asie Sdn Bhd and Usaha Nusantara Sdn Bhd through their solicitors had taken the position that the JVA had lapsed and was of no effect from Dec 2 “as they inter alia take the position that the conditions precedent in the JVA were not met.”
“Mah Sing, however, takes a different position and maintains that the JVA has not lapsed and as stated in our announcement dated Dec 6, has waived the conditions precedent 2.6.2(b), 2.6.2(c), 2.6.2(d) and 2.6.2(e) as set out in the announcement dated Aug 2.
“Mah Sing's solicitors have today issued a letter to Asie's and Usaha Nusantara's solicitors inter alia maintaining this position.
“Together with the letter, Mah Sing's solicitors also returned the RM6.4mil deposit (with interest earned thereon) attempted to be refunded by Asie and Usaha Nusantara as Mah Sing is unable to accept the refund of the deposit,” it said.
Mah Sing had in August this year secured the development rights for a 4.08-acre parcel along Jalan Tun Razak-Jalan Pahang, which formerly housed the Pekeliling flats.
Mah Sing's wholly-owned subsidiary, Grand Pavilion Development Sdn Bhd, had entered into a joint venture agreement with privately-held Asie Sdn Bhd and its unit, Usaha Nusantara Sdn Bhd, to undertake a niche development named M Sentral with a potential gross development value of RM900mil.
By The Star
Mah Sing said Asie Sdn Bhd and Usaha Nusantara Sdn Bhd through their solicitors had taken the position that the JVA had lapsed and was of no effect from Dec 2 “as they inter alia take the position that the conditions precedent in the JVA were not met.”
“Mah Sing, however, takes a different position and maintains that the JVA has not lapsed and as stated in our announcement dated Dec 6, has waived the conditions precedent 2.6.2(b), 2.6.2(c), 2.6.2(d) and 2.6.2(e) as set out in the announcement dated Aug 2.
“Mah Sing's solicitors have today issued a letter to Asie's and Usaha Nusantara's solicitors inter alia maintaining this position.
“Together with the letter, Mah Sing's solicitors also returned the RM6.4mil deposit (with interest earned thereon) attempted to be refunded by Asie and Usaha Nusantara as Mah Sing is unable to accept the refund of the deposit,” it said.
Mah Sing had in August this year secured the development rights for a 4.08-acre parcel along Jalan Tun Razak-Jalan Pahang, which formerly housed the Pekeliling flats.
Mah Sing's wholly-owned subsidiary, Grand Pavilion Development Sdn Bhd, had entered into a joint venture agreement with privately-held Asie Sdn Bhd and its unit, Usaha Nusantara Sdn Bhd, to undertake a niche development named M Sentral with a potential gross development value of RM900mil.
By The Star
Ban Guan Hin rejects SP Setia’s extension request
KUALA LUMPUR: SP Setia Bhd's request for an extension to fulfill some conditions for its proposed acquisition of 1,010.5 acres in Ulu Langat, Selangor for RM330.1mil was not agreed by vendor, Ban Guan Hin Realty Sdn Bhd.
According to SP Setia, in filing to Bursa Malaysia yesterday, conditions precedent included the approval of the Estate Land Board to be obtained for the sale and transfer of the said land to the purchaser.
“The purchaser is currently seeking legal advice on its position under the sale and purchase agreement and will seek the appropriate relief from the court, if necessary,” it said.
SP Setia had planned a mixed development for the land and was committed to building starter homes priced from RM300,000 onwards.
By The Star
According to SP Setia, in filing to Bursa Malaysia yesterday, conditions precedent included the approval of the Estate Land Board to be obtained for the sale and transfer of the said land to the purchaser.
“The purchaser is currently seeking legal advice on its position under the sale and purchase agreement and will seek the appropriate relief from the court, if necessary,” it said.
SP Setia had planned a mixed development for the land and was committed to building starter homes priced from RM300,000 onwards.
By The Star
Halifax expects British house prices to be stagnant for next year
LONDON: Britain's housing market is likely to stagnate in 2012, with low interest rates offset by a squeeze on household budgets, according to mortgage lender Halifax.
In its outlook for next year, Halifax said it expected house prices to end 2012 in a range of down 2% to up 2%. Prospects for Britain's economy were “particularly uncertain” but the likelihood of the Bank of England leaving interest rates at a record low 0.5% for the foreseeable future would help support the market, it said.
“Overall, we expect continuing broad stability in house prices nationally during 2012. Prices are again likely to end the year at levels close to where they begin with the market continuing to lack any real direction,” said Halifax economist Martin Ellis.
However, demand for homes would be constrained by rising unemployment and the weak outlook for growth.
“These pressures will come from a combination of subdued earnings growth, high (but falling) inflation, the substantial fiscal tightening that is taking place and an ongoing rebalancing of household sector finances with many families seeking to reduce their debts,” Ellis said.
Meanwhile, Britain had 11% more houses valued at 1mil or more available for purchase in the third quarter than it did a year earlier, Investec Specialist Bank said in a report yesterday.
By Agencies
In its outlook for next year, Halifax said it expected house prices to end 2012 in a range of down 2% to up 2%. Prospects for Britain's economy were “particularly uncertain” but the likelihood of the Bank of England leaving interest rates at a record low 0.5% for the foreseeable future would help support the market, it said.
“Overall, we expect continuing broad stability in house prices nationally during 2012. Prices are again likely to end the year at levels close to where they begin with the market continuing to lack any real direction,” said Halifax economist Martin Ellis.
However, demand for homes would be constrained by rising unemployment and the weak outlook for growth.
“These pressures will come from a combination of subdued earnings growth, high (but falling) inflation, the substantial fiscal tightening that is taking place and an ongoing rebalancing of household sector finances with many families seeking to reduce their debts,” Ellis said.
Meanwhile, Britain had 11% more houses valued at 1mil or more available for purchase in the third quarter than it did a year earlier, Investec Specialist Bank said in a report yesterday.
By Agencies
Housing regulator sues Chicago
WASHINGTON: The Federal Housing Finance Agency said it was suing the city of Chicago to prevent it from enforcing a recently amended ordinance dealing with vacant properties.
FHFA said it was acting on its own behalf and as the conservator for Fannie Mae and Freddie Mac and said it had taken the action reluctantly after trying unsuccessfully to work the issue out with the city.
By Reuters
FHFA said it was acting on its own behalf and as the conservator for Fannie Mae and Freddie Mac and said it had taken the action reluctantly after trying unsuccessfully to work the issue out with the city.
By Reuters
Tuesday, December 13, 2011
PLB Land to buy land in Penang
KUALA LUMPUR: PLB Engineering Bhd’s unit, PLB Land Sdn Bhd, has agreed to buy two plots of land in Ayer Itam, Penang, from individual vendors for RM6.5 milion last Friday.
The plots, measuring 4,563 sq m and 5,178 sq m respectively, will be used for future development, the company said in a filing to Bursa Malaysia yesterday.
By Business Times
The plots, measuring 4,563 sq m and 5,178 sq m respectively, will be used for future development, the company said in a filing to Bursa Malaysia yesterday.
By Business Times
I-Berhad inks pact with Everbright Intl
I-Berhad today entered into a strategic alliance with China-based, Everbright International China, to co-develop 12.14 hectares (30 acres) of land in i-City via a joint venture.
Everbright will have a 70 per cent shareholding in the venture. I-Berhad, in a statement here today, said it would hold the balance 30 per cent stake.
Apart from financing the construction, Everbright will also lead a consortium of Chinese companies to set up operations in i-City, Shah Alam.
The development will be undertaken in two phases involving 5.66 hectares (14 acres) for the initial phase and the balance 6.47 hectares (16 acres) in the
subsequent phase.
The first phase of the development is for a commercial hub with a gross development value of RM1.5 billion comprising a 92,903 sq m (one million sq ft) shopping mall and 185,206 sq m (two million sq ft) of mixed residential, MSC offices and educational institute. Work on the project is expected to begin by mid-2012.
By Bernama
Everbright will have a 70 per cent shareholding in the venture. I-Berhad, in a statement here today, said it would hold the balance 30 per cent stake.
Apart from financing the construction, Everbright will also lead a consortium of Chinese companies to set up operations in i-City, Shah Alam.
The development will be undertaken in two phases involving 5.66 hectares (14 acres) for the initial phase and the balance 6.47 hectares (16 acres) in the
subsequent phase.
The first phase of the development is for a commercial hub with a gross development value of RM1.5 billion comprising a 92,903 sq m (one million sq ft) shopping mall and 185,206 sq m (two million sq ft) of mixed residential, MSC offices and educational institute. Work on the project is expected to begin by mid-2012.
By Bernama
Seri Alam in JV with S’pore company to build international school in Iskandar
PETALING JAYA: United Malayan Land Bhd's (UM Land) fully-owned subsidiary, Seri Alam Properties Sdn Bhd, has formed a joint-venture company with Singaporean educational management company Raffles Campus Pte Ltd called Raffles Campus (Seri Alam) Sdn Bhd (RCSA) to develop an international school in Bandar Seri Alam, within Iskandar Malaysia in Johor.
The campus will spread over 20 acres next to the Universiti Teknologi Mara campus in Bandar Seri Alam.
Seri Alam Properties entered into a sales and purchase agreement on Sunday with RCSA for the proposed acquisition of a freehold land measuring 19.71 acres for RM10.83mil.
At least 230,000 sq ft will be allocated for the built-up area, excluding staff residences and students' hostel.
The school, Excelsior International School, will feature state-of-the-art facilities catering to up to 2,000 students.
An international curriculum will be offered for children from kindergarten up to high school. A management team from Raffles Campus will manage the school.
The design of the campus has been completed. Construction will begin in January 2012 and is expected to be completed in June 2013.
Raffles Campus is a wholly-owned subsidiary of Strategic Technology for Education and Academic Management Pte Ltd, which is 70% owned by Strategic Foundation Ltd (a non-profit organisation). The school will be its first in Malaysia and will commence admission assessments and enrolments in early 2013.
From this project, RCSA hopes to add prestige to the Bandar Seri Alam township and enhance capital values by providing quality and wholesome living for its residents.
UM Land's share trading was halted from 9am to 10am yesterday in view of the company's announcement.
In a statement, Raffles Campus chairman and chief executive officer Ng Boon Yew said: “The school will take into consideration local requirements and, although the medium of instruction will be in English, all the students will be encouraged to learn their mother-tongue as either first or second language.”
By The Star
The campus will spread over 20 acres next to the Universiti Teknologi Mara campus in Bandar Seri Alam.
Seri Alam Properties entered into a sales and purchase agreement on Sunday with RCSA for the proposed acquisition of a freehold land measuring 19.71 acres for RM10.83mil.
At least 230,000 sq ft will be allocated for the built-up area, excluding staff residences and students' hostel.
The school, Excelsior International School, will feature state-of-the-art facilities catering to up to 2,000 students.
An international curriculum will be offered for children from kindergarten up to high school. A management team from Raffles Campus will manage the school.
The design of the campus has been completed. Construction will begin in January 2012 and is expected to be completed in June 2013.
Raffles Campus is a wholly-owned subsidiary of Strategic Technology for Education and Academic Management Pte Ltd, which is 70% owned by Strategic Foundation Ltd (a non-profit organisation). The school will be its first in Malaysia and will commence admission assessments and enrolments in early 2013.
From this project, RCSA hopes to add prestige to the Bandar Seri Alam township and enhance capital values by providing quality and wholesome living for its residents.
UM Land's share trading was halted from 9am to 10am yesterday in view of the company's announcement.
In a statement, Raffles Campus chairman and chief executive officer Ng Boon Yew said: “The school will take into consideration local requirements and, although the medium of instruction will be in English, all the students will be encouraged to learn their mother-tongue as either first or second language.”
By The Star
Monday, December 12, 2011
UDA to build affordable shoplots
ROMPIN: UDA Holdings Bhd will build affordable shoplots at 15 strategic locations with a RM30 million allocation provided by the government.
Its chairman Datuk Nur Jazlan Mohamed said among the locations identified for the "kedai desa" were Kuala Pahang, Kuala Rompin and Mentakab (Pahang); Changkat Jong and Pangkalan Alor (Perak); Muar and Ledang (Johor); Jasin (Malacca); Kuala Pilah (Negeri Sembilan) and Jeli (Kelantan).
He said each location will have between five and eight double-storey units depending on the cost involved and the demand in the areas.
He said the cost for each location would only be RM2 million on average as the sites would be provided by the local authorities.
Construction of each project will only take eight months and once completed, UDA will hand it to the respective local authorities.
The local authority will then let the shoplots to local entrepreneurs at reasonable rates, Nur Jazlan said at the signing of a memorandum of understanding in Rompin, Pahang, yesterday.
By Business Times
Its chairman Datuk Nur Jazlan Mohamed said among the locations identified for the "kedai desa" were Kuala Pahang, Kuala Rompin and Mentakab (Pahang); Changkat Jong and Pangkalan Alor (Perak); Muar and Ledang (Johor); Jasin (Malacca); Kuala Pilah (Negeri Sembilan) and Jeli (Kelantan).
He said each location will have between five and eight double-storey units depending on the cost involved and the demand in the areas.
He said the cost for each location would only be RM2 million on average as the sites would be provided by the local authorities.
Construction of each project will only take eight months and once completed, UDA will hand it to the respective local authorities.
The local authority will then let the shoplots to local entrepreneurs at reasonable rates, Nur Jazlan said at the signing of a memorandum of understanding in Rompin, Pahang, yesterday.
By Business Times
Ascott plans to double portfolio in Malaysia
KUALA LUMPUR: Singapore-based The Ascott Ltd, the world's largest international serviced residence owner-operator, plans to double its serviced apartment portfolio in Malaysia over the next five years.
Ascott regional general manager for Singapore and Malaysia, Tan Boon Khai said it aims to open one or two properties a year as it is bullish on the market.
"We see Malaysia as a very good market. Although there is economic recession in some countries, Malaysia is holding up," Tan told Business Times.
"There is a lot of foreign investments flowing into Malaysia. This alone will create demand for our properties. The more properties we have, there will be economies of scale," he said.
Ascott aims to own and manage serviced apartments in Sabah and Sarawak, Johor and Penang. It plans to build the properties from scratch, or buy over existing buildings, Tan said.
Currently, Ascott owns and manages Ascott Kuala Lumpur, Somerset Seri Bukit Ceylon and Somerset Ampang. It also manages Marc Service Suites and Tiffani by i-Zen for third parties.
The average occupancy for the five operating properties between January and October 2011 was 62 per cent.
Over the next five years, the group will manage Ascott Sentral Kuala Lumpur (owned by GSB Sentral Sdn Bhd, an associate of MRCB and Gapurna Group); Citadines Uplands Kuching; Citadines D'Pulze Cyberjaya; Somerset Puteri Harbour, (owned by Nusajaya Consolidated Sdn Bhd and a joint venture between United Malayan Land Bhd and UEM Land Bhd); and Somerset Uptown Damansara (owned by See Hoy Chan Sdn Bhd).
"If the owners are keen to sell their serviced apartments, we will consider exploring. The trend is building where people want to stay in serviced apartments during their travel. We will look at all angles to grow," Tan said.
It operates serviced apartments under three brands - Ascott, Citadines and Somerset.
The flagship Ascott-branded properties are premier serviced residences that offer residents discreet service in an exclusive environment.
Citadines serviced residences cater to independent travellers while Somerset serviced residences are designed for business executives who travel with their families.
The Ascott has about 22,000 operating serviced residence units in key cities of Asia Pacific, Europe and the Gulf region.
By Business Times
Ascott regional general manager for Singapore and Malaysia, Tan Boon Khai said it aims to open one or two properties a year as it is bullish on the market.
"We see Malaysia as a very good market. Although there is economic recession in some countries, Malaysia is holding up," Tan told Business Times.
"There is a lot of foreign investments flowing into Malaysia. This alone will create demand for our properties. The more properties we have, there will be economies of scale," he said.
Ascott aims to own and manage serviced apartments in Sabah and Sarawak, Johor and Penang. It plans to build the properties from scratch, or buy over existing buildings, Tan said.
Currently, Ascott owns and manages Ascott Kuala Lumpur, Somerset Seri Bukit Ceylon and Somerset Ampang. It also manages Marc Service Suites and Tiffani by i-Zen for third parties.
The average occupancy for the five operating properties between January and October 2011 was 62 per cent.
Over the next five years, the group will manage Ascott Sentral Kuala Lumpur (owned by GSB Sentral Sdn Bhd, an associate of MRCB and Gapurna Group); Citadines Uplands Kuching; Citadines D'Pulze Cyberjaya; Somerset Puteri Harbour, (owned by Nusajaya Consolidated Sdn Bhd and a joint venture between United Malayan Land Bhd and UEM Land Bhd); and Somerset Uptown Damansara (owned by See Hoy Chan Sdn Bhd).
"If the owners are keen to sell their serviced apartments, we will consider exploring. The trend is building where people want to stay in serviced apartments during their travel. We will look at all angles to grow," Tan said.
It operates serviced apartments under three brands - Ascott, Citadines and Somerset.
The flagship Ascott-branded properties are premier serviced residences that offer residents discreet service in an exclusive environment.
Citadines serviced residences cater to independent travellers while Somerset serviced residences are designed for business executives who travel with their families.
The Ascott has about 22,000 operating serviced residence units in key cities of Asia Pacific, Europe and the Gulf region.
By Business Times
SYF ready to enter property development business
Kuala Lumpur: Datuk Chee Hong Leong has a growing reputation in the market and he is putting it at stake by driving SYF Resources Bhd into the property development business.
In the meantime, he has also emerged as its second largest shareholder, owning slightly over 10 per cent of the company.
“I wouldn’t be here if I didn’t believe that the property business for now is the best model for SYF,” said Chee, who was recently appointed as an executive director.
Chee emerged as a force in the company at the same time as Datuk Chew Lak Seong and Datuk Eric Ong Kook Liong, the two men
behind privately held KIP Group, which is involved in the property business.
The two own just slightly more than 14 per cent of SYF. Chee is banking that by cleaning SYF’s balance sheet, he will be able to take the company to the next level. The spring cleaning of the
balance sheet has helped SYF to post a net profit of RM39.24 million in the first quarter ended October 31, 2011.
Now that the restructuring is done, SYF is hoping that the property development business will become the company’s second core business and help provide it with a stable income stream.
“We are also expecting our timber manufacturing business to post double-digit growth,” said Chee.
A double-digit growth should help the manufacturing business to rake in as much as RM200 million this year.
The margins, according to industry experts, could be as high as 10 per cent due to the flooding in Thailand.
Nevertheless, Chee, who has been involved in the property business for nearly half a decade, felt that it was the property business that would take SYF to the next level.
He added that in the initial stage, SYF would not be depleting its cash reserves, saying that the company would instead enter into joint ventures to help develop properties.
The rationale is that SYF wants to build up its brand name first before undertaking bigger jobs.
"With land ownership, you can't go wrong because as they say 'God don't make land any more'," said Chee, whose goal in the current financial year is to keep SYF as a single-digit Price-to-Earnings company.
By Business Times
In the meantime, he has also emerged as its second largest shareholder, owning slightly over 10 per cent of the company.
“I wouldn’t be here if I didn’t believe that the property business for now is the best model for SYF,” said Chee, who was recently appointed as an executive director.
Chee emerged as a force in the company at the same time as Datuk Chew Lak Seong and Datuk Eric Ong Kook Liong, the two men
behind privately held KIP Group, which is involved in the property business.
The two own just slightly more than 14 per cent of SYF. Chee is banking that by cleaning SYF’s balance sheet, he will be able to take the company to the next level. The spring cleaning of the
balance sheet has helped SYF to post a net profit of RM39.24 million in the first quarter ended October 31, 2011.
Now that the restructuring is done, SYF is hoping that the property development business will become the company’s second core business and help provide it with a stable income stream.
“We are also expecting our timber manufacturing business to post double-digit growth,” said Chee.
A double-digit growth should help the manufacturing business to rake in as much as RM200 million this year.
The margins, according to industry experts, could be as high as 10 per cent due to the flooding in Thailand.
Nevertheless, Chee, who has been involved in the property business for nearly half a decade, felt that it was the property business that would take SYF to the next level.
He added that in the initial stage, SYF would not be depleting its cash reserves, saying that the company would instead enter into joint ventures to help develop properties.
The rationale is that SYF wants to build up its brand name first before undertaking bigger jobs.
"With land ownership, you can't go wrong because as they say 'God don't make land any more'," said Chee, whose goal in the current financial year is to keep SYF as a single-digit Price-to-Earnings company.
By Business Times
Genting to invest RM100m in JPO expansion plan
JOHOR BARU: Genting Bhd plans to invest another RM100mil in the second phase of the expansion plan of the Johor Premium Outlets (JPO) in Kulaijaya, north of Johor Baru.
Genting chairman and Genting Plantations Bhd director and chief executive officer Tan Sri Lim Kok Thay had personally told Prime Minister Datuk Seri Najib Tun Razak on the group’s plan.
The expansion plan would see an additional 60 new outlets, bringing the total to 130 outlets from 70 presently, and a water theme park.
Genting’s total investment in the project is about RM1bil. Other components in the pipeline include a hotel with 2,000 rooms and hospitality facilities for meetings, incentives, conventions and exhibitions.
“The expansion plan will take place in the near future,” Najib said yesterday at the opening of the JPO, the 70th centre in the Premium Outlets portfolio and the world’s largest collection of upscale outlets centres.
He said the JPO, a project earmarked under the Economic Transformation Programme, would boost the economy via tourism and help transform the industry in Johor as well as the country.
StarBiz learnt that the expansion plan would probably take place either in 2014 or 2015 and Genting’s main focus now was to position JPO as the leading retail outlet in the region.
JPO is the only Premium Outlets centre in South-East Asia. There are 58 other Premium Outlets in the United States, one in Puerto Rico, one in Mexico, eight in Japan and two in South Korea.
Among the brands on the offing at the outlets are Armani, Burberry, Canali, Coach, Ermenegildo Zegna, Guess, Michael Kors, Ralph Lauren and Salvatore Ferragamo.
The Premium Outlets is a 50:50 joint venture between Genting Plantations and Premium Outlets, the outlet division of Simon Property Group Inc.
Meanwhile, Lim said JPO would benefit from the Genting group’s expertise in hospitality and marketing to promote the outlets to customers globally.
By The Star
Genting chairman and Genting Plantations Bhd director and chief executive officer Tan Sri Lim Kok Thay had personally told Prime Minister Datuk Seri Najib Tun Razak on the group’s plan.
The expansion plan would see an additional 60 new outlets, bringing the total to 130 outlets from 70 presently, and a water theme park.
Genting’s total investment in the project is about RM1bil. Other components in the pipeline include a hotel with 2,000 rooms and hospitality facilities for meetings, incentives, conventions and exhibitions.
“The expansion plan will take place in the near future,” Najib said yesterday at the opening of the JPO, the 70th centre in the Premium Outlets portfolio and the world’s largest collection of upscale outlets centres.
He said the JPO, a project earmarked under the Economic Transformation Programme, would boost the economy via tourism and help transform the industry in Johor as well as the country.
StarBiz learnt that the expansion plan would probably take place either in 2014 or 2015 and Genting’s main focus now was to position JPO as the leading retail outlet in the region.
JPO is the only Premium Outlets centre in South-East Asia. There are 58 other Premium Outlets in the United States, one in Puerto Rico, one in Mexico, eight in Japan and two in South Korea.
Among the brands on the offing at the outlets are Armani, Burberry, Canali, Coach, Ermenegildo Zegna, Guess, Michael Kors, Ralph Lauren and Salvatore Ferragamo.
The Premium Outlets is a 50:50 joint venture between Genting Plantations and Premium Outlets, the outlet division of Simon Property Group Inc.
Meanwhile, Lim said JPO would benefit from the Genting group’s expertise in hospitality and marketing to promote the outlets to customers globally.
By The Star
Saturday, December 10, 2011
Bandar Ainsdale project in Seremban to kick off affordable housing scheme
SIME Darby Property Bhd will be offering affordable housing in the coming years as a stategic component in their up-and-coming townships in line with market needs and to complement the government's affordable-housing scheme.
Wahab: (75% sales record) is a clear reflection that residential properties in prime areas are still very much in demand and we are optimistic.
In his first press statement since he took over as managing director, Datuk Abdul Wahab Maskan says they have already identified areas in their townships for PR1MA housing, also known as 1Malaysia Housing Programme. Their first township to kick off affordable housing will be Bandar Ainsdale in Seremban.
Wahab, who is also Sime Darby Bhd group chief operating officer, assumed the position at the property division from Tunku Datuk Badlishah Tunku Annuar in June. Wahab is also Sime Darby group chief operating officer.
There are several reasons why Sime's contribution to affordable housing will begin at Bandar Ainsdale. First, Bandar Ainsdale is a new 550-acre township that will be launched at the end of this year and it will be viable to begin social housing with a clean slate. Ainsdale will comprise residential and commercial segments. Over and above that, the focal point of that township will be its integrated public transportation component with a KTM station to be its public transportation terminal. This will add to Bandar Ainsdale's accessibility, which will be a much needed infrastructure in any affordable housing scheme.
Other areas that will subsequently offer affordable housing include Ara Damansara in Petaling Jaya near Subang Airport, Bandar Bukit Raja in Klang, Putra Heights in Subang Jaya, Kota Elmina in Sungai Buloh, Elmina West in Shah Alam and Lagong Mas in Rawang, Selangor.
Earlier, it was reported that the Economic Planning Unit (EPU) would focus on three projects comprising the first PR1MA scheme to be offered by the government in Presint 11, Putrajaya, Bandar Ainsdale in Seremban and Bandar Tun Razak in Cheras this year.
EPU deputy director-general Datuk Mat Noor Nawi said about 4,000 units will be offered in this first batch of PR1MA housing with the development in Presint 11 to provide 560 apartment units while the other two developments will consist of a mix of landed and high-rise and apartment units for the Bandar Ainsdale in Seremban and Bandar Tun Razak projects respectively.
Other than affordable housing, Sime also plans to launch more than RM2bil worth of properties from the third quarter of this year to the end of its 2012 financial year which closes at the end of June. Wahab says they are en route to achieving this target.
The division recently launched Isola, a 216-unit serviced condominium in Subang Jaya, Selangor which has a gross development value of more than RM210 mil, which was 75% sold on its first day itself.
“This is a clear reflection that residential properties in prime areas are still very much in demand and we are optimistic. The residential property segment is expected to remain positive this year, especially in the main areas of growth such as the Klang Valley and other urban centres. Similarly, shop houses will also remain attractive to buyers and investors, especially if they are located in high growth areas,” he says.
Launches targeted till the end of this year include link houses (about 271 units), shop offices (about 61 units), condominium/serviced apartments (about 966 units), bungalows (about 71 units) and commercial units (about 171 units) in Denai Alam, Nilai Impian and Bandar Bukit Raja.
To date, it has successfully launched Maple Terrace in Denai Alam, Avalon 1 and Avalon 11 in USJ Heights, Davina 111 and Iluna in Nilai Impian. These properties are worth more than RM320mil collectively, the statement says.
They will have seven launches for the first six months of next year, or 3,848 units of condominiums, industrial properties, mixed development and bungalows. Next year's launches include a mixed development with 35 units in Ara Damansara, 554 units of villas and condominiums in Putra Heights in Subang Jaya, 231 units of mixed development in Bandar Bukit Raja in Klang and about 90 units of industrial properties in Elmina East in Shah Alam. Other launches slated for next year include about 1,000 units of mixed development in Denai Alam, Shah Alam, 540 units of bungalows and condominium-cum-villas in Bukit Jelutong in Shah Alam and about 1,400 units of mixed development in Melawati in Ulu Kelang.
Subsequent to the success of Sime Darby Property's Oasis Square in Ara Damansara, where Sime Darby Property and Sime Darby Plantation's corporate head offices have been re-located to, the next commercial development in the Ara Damansara township will be Oasis Corporate Park. That mixed-commercial development will see its first 340 units of flexi-office suites with 620 sq ft of office space each, launched early next year.
The presence of these two corporate HQs will generate a sizeable retail market for the area. Together with Oasis Corporate Park, the company expects Ara Damansara to be a popular suburb in time to come.
“Development in Ara Damansara is about 85% completed. Residential properties in Ara Damansara have recorded an average price growth of about 100% in five years. This translates into a yearly average growth of 13.7% compounded.” (Source: Jones Lang Wootton research). Together with the 9.8 acres of Oasis Corporate Park development, that township will eventually have a mix of corporate offices, serviced suites, a hotel and a convention centre.
Upcoming developments in Ara Damansara include Senada Condo Villa, an 18-unit project with an estimated selling price of around RM3.8 million per unit with built-up of the units ranging from 7,080 to 7,500 sq ft, which is scheduled to be launched in the second quarter of next year. The other project is Community Square, a commercial hub and low rise centre that focuses on offering convenience to the Ara Damansara community. This community square is also anticipated to provide added value in terms of commercial value to the community.
By The Star
Wahab: (75% sales record) is a clear reflection that residential properties in prime areas are still very much in demand and we are optimistic.
In his first press statement since he took over as managing director, Datuk Abdul Wahab Maskan says they have already identified areas in their townships for PR1MA housing, also known as 1Malaysia Housing Programme. Their first township to kick off affordable housing will be Bandar Ainsdale in Seremban.
Wahab, who is also Sime Darby Bhd group chief operating officer, assumed the position at the property division from Tunku Datuk Badlishah Tunku Annuar in June. Wahab is also Sime Darby group chief operating officer.
There are several reasons why Sime's contribution to affordable housing will begin at Bandar Ainsdale. First, Bandar Ainsdale is a new 550-acre township that will be launched at the end of this year and it will be viable to begin social housing with a clean slate. Ainsdale will comprise residential and commercial segments. Over and above that, the focal point of that township will be its integrated public transportation component with a KTM station to be its public transportation terminal. This will add to Bandar Ainsdale's accessibility, which will be a much needed infrastructure in any affordable housing scheme.
Other areas that will subsequently offer affordable housing include Ara Damansara in Petaling Jaya near Subang Airport, Bandar Bukit Raja in Klang, Putra Heights in Subang Jaya, Kota Elmina in Sungai Buloh, Elmina West in Shah Alam and Lagong Mas in Rawang, Selangor.
Earlier, it was reported that the Economic Planning Unit (EPU) would focus on three projects comprising the first PR1MA scheme to be offered by the government in Presint 11, Putrajaya, Bandar Ainsdale in Seremban and Bandar Tun Razak in Cheras this year.
EPU deputy director-general Datuk Mat Noor Nawi said about 4,000 units will be offered in this first batch of PR1MA housing with the development in Presint 11 to provide 560 apartment units while the other two developments will consist of a mix of landed and high-rise and apartment units for the Bandar Ainsdale in Seremban and Bandar Tun Razak projects respectively.
Other than affordable housing, Sime also plans to launch more than RM2bil worth of properties from the third quarter of this year to the end of its 2012 financial year which closes at the end of June. Wahab says they are en route to achieving this target.
The division recently launched Isola, a 216-unit serviced condominium in Subang Jaya, Selangor which has a gross development value of more than RM210 mil, which was 75% sold on its first day itself.
“This is a clear reflection that residential properties in prime areas are still very much in demand and we are optimistic. The residential property segment is expected to remain positive this year, especially in the main areas of growth such as the Klang Valley and other urban centres. Similarly, shop houses will also remain attractive to buyers and investors, especially if they are located in high growth areas,” he says.
Launches targeted till the end of this year include link houses (about 271 units), shop offices (about 61 units), condominium/serviced apartments (about 966 units), bungalows (about 71 units) and commercial units (about 171 units) in Denai Alam, Nilai Impian and Bandar Bukit Raja.
To date, it has successfully launched Maple Terrace in Denai Alam, Avalon 1 and Avalon 11 in USJ Heights, Davina 111 and Iluna in Nilai Impian. These properties are worth more than RM320mil collectively, the statement says.
They will have seven launches for the first six months of next year, or 3,848 units of condominiums, industrial properties, mixed development and bungalows. Next year's launches include a mixed development with 35 units in Ara Damansara, 554 units of villas and condominiums in Putra Heights in Subang Jaya, 231 units of mixed development in Bandar Bukit Raja in Klang and about 90 units of industrial properties in Elmina East in Shah Alam. Other launches slated for next year include about 1,000 units of mixed development in Denai Alam, Shah Alam, 540 units of bungalows and condominium-cum-villas in Bukit Jelutong in Shah Alam and about 1,400 units of mixed development in Melawati in Ulu Kelang.
Subsequent to the success of Sime Darby Property's Oasis Square in Ara Damansara, where Sime Darby Property and Sime Darby Plantation's corporate head offices have been re-located to, the next commercial development in the Ara Damansara township will be Oasis Corporate Park. That mixed-commercial development will see its first 340 units of flexi-office suites with 620 sq ft of office space each, launched early next year.
The presence of these two corporate HQs will generate a sizeable retail market for the area. Together with Oasis Corporate Park, the company expects Ara Damansara to be a popular suburb in time to come.
“Development in Ara Damansara is about 85% completed. Residential properties in Ara Damansara have recorded an average price growth of about 100% in five years. This translates into a yearly average growth of 13.7% compounded.” (Source: Jones Lang Wootton research). Together with the 9.8 acres of Oasis Corporate Park development, that township will eventually have a mix of corporate offices, serviced suites, a hotel and a convention centre.
Upcoming developments in Ara Damansara include Senada Condo Villa, an 18-unit project with an estimated selling price of around RM3.8 million per unit with built-up of the units ranging from 7,080 to 7,500 sq ft, which is scheduled to be launched in the second quarter of next year. The other project is Community Square, a commercial hub and low rise centre that focuses on offering convenience to the Ara Damansara community. This community square is also anticipated to provide added value in terms of commercial value to the community.
By The Star
Polish the gems of KL
The festive season is just around the corner. Many of us have either planned our vacation and are most probably travelling at this very moment. Whichever destination we have in mind for our vacation, the consensus is travelling provides us an opportunity to revitalise ourselves, gain knowledge and broaden our experience.
For some of us, travelling is an avenue for reflection and inspiration. Seeing a new place and/or experiencing a new culture allows us to reflect on what we have and gives us the motivation to seek improvements.
Without a doubt, the experience and knowledge gained from my trips especially those abroad have inspired me with many ideas to improve myself, my family and the community. By simply comprehending the ordinary activities of the common people around the world, a new sphere of ideas becomes apparent.
Insignificant at first sight, a closer examination draws out the importance of the activities of the people albeit with different perspective from different people. For me, the significant realisation was that these activities were made possible due to the structure and growth of the city as well as the mindset of the people. These activities form part of the pivotal elements that make a city liveable, likeable and eventually, a world class city.
Going down memory lane, I remember seeing hundreds of people practising Tai Chi in one of the parks in Beijing. In other parts of the world, young executives are commonly seen reading the newspapers on their way to work via the Metro in Paris; children running freely around the playground in Sydney; students performing at a music festival in Hong Kong; families having fun at a carnival in London; and the list goes on.
One would enquire: “What is so special or significant about these ordinary activities that other people in different parts of the world do?”
Let's take the Tai Chi exercise in Beijing as an example. In my view, it reflects the health consciousness, community spirit, and the value of volunteerism practised by the society in Beijing. The group leader of the Tai Chi exercise conducts the exercises on a voluntarily basis. In return, he/she is joined by people of all ages who are interested in the exercise for health reason, community kinship or simply, as a form of relaxation. This creates a healthy society and a sense of belonging among the community, something of which we could promote in Malaysia.
My last article touched on the macro aspects of making Kuala Lumpur a world class city. Now, let's cover the social and cultural aspects which form the other integral parts that would contribute to this vision.
The social and cultural characteristics basically address the “software” aspects of the society. The elements that form this “software development” include peace, prosperity, history, culture, education, entertainment and the rich diversity of the society. With these elements in place, bountiful benefits can be achieved.
Let's reflect on the examples that I have shared earlier. What allows the children to run freely in a playground or why do young executives have the luxury to read the newspaper on their way to work or how does one get students to perform at a music festival or run a carnival for families to enjoy?
There is probably more than one answer to all of the questions. One thing that is common is the fact that all these activities are made possible when the city is allowed to flourish, free of crime and has world class facilities for people.
We can achieve the same by changing our mindset from “wait-an- see” to “let's explore”. We can work together to prevent crime and encourage the use of public amenities such as parks with care through education and public awareness. An improved public transportation system to ease traffic congestion and enhance workforce efficiency is definitely a must.
In terms of human resources development, a well thought and long-term plan is required to retain local talent and attract professionals from abroad. Educational institutions must provide a high level of quality education and encourage students to have a balance exposure to the arts and sciences in order to cultivate greater creativity which would benefit the society as a whole.
To generate a greater sense of belonging and to promote community living, city stakeholders can organise more social events and entertainment events, such as cultural performances, open air concerts, carnivals and sporting events. Significant events will bring in the tourists and can eventually become attractions for the city.
Living in a multi-racial and multi-cultural society, we get to enjoy the differences that come with this diversity and uniqueness. For example, we are pampered with a seemingly endless variety of food and eating out is a real gastronomic treat. Imagine having a simple meal and drink of your choice at a mamak stall and paying less than RM10 for the whole dining experience. Malaysia, especially KL, is a gourmet centre for the locals and tourists alike. I believe every Malaysian would attest to that and agree that food is the common element that brings people together.
We should therefore put emphasis on sustaining and enhancing this social and cultural uniqueness to our benefit. Each of us plays a part in contributing to the transformation of KL and of the country. Let us start by equipping ourselves with good practices so that KL can earn the recognition as a world class city and place Malaysia more prominently on the world map.
The diversity of our food, culture and heritage is the hidden gems ready to be uncovered and once discovered and polished, they will make KL and Malaysia shine and reveal their true beauty.
Datuk Alan Tong is the group chairman of Bukit Kiara Properties, he was the FIABCI World President in 2005-2006 and was recently named Property Man of The Year 2010 by FIABCI Malaysia.
By The Star (by Datuk Alan Tong)
For some of us, travelling is an avenue for reflection and inspiration. Seeing a new place and/or experiencing a new culture allows us to reflect on what we have and gives us the motivation to seek improvements.
Without a doubt, the experience and knowledge gained from my trips especially those abroad have inspired me with many ideas to improve myself, my family and the community. By simply comprehending the ordinary activities of the common people around the world, a new sphere of ideas becomes apparent.
Insignificant at first sight, a closer examination draws out the importance of the activities of the people albeit with different perspective from different people. For me, the significant realisation was that these activities were made possible due to the structure and growth of the city as well as the mindset of the people. These activities form part of the pivotal elements that make a city liveable, likeable and eventually, a world class city.
Going down memory lane, I remember seeing hundreds of people practising Tai Chi in one of the parks in Beijing. In other parts of the world, young executives are commonly seen reading the newspapers on their way to work via the Metro in Paris; children running freely around the playground in Sydney; students performing at a music festival in Hong Kong; families having fun at a carnival in London; and the list goes on.
One would enquire: “What is so special or significant about these ordinary activities that other people in different parts of the world do?”
Let's take the Tai Chi exercise in Beijing as an example. In my view, it reflects the health consciousness, community spirit, and the value of volunteerism practised by the society in Beijing. The group leader of the Tai Chi exercise conducts the exercises on a voluntarily basis. In return, he/she is joined by people of all ages who are interested in the exercise for health reason, community kinship or simply, as a form of relaxation. This creates a healthy society and a sense of belonging among the community, something of which we could promote in Malaysia.
My last article touched on the macro aspects of making Kuala Lumpur a world class city. Now, let's cover the social and cultural aspects which form the other integral parts that would contribute to this vision.
The social and cultural characteristics basically address the “software” aspects of the society. The elements that form this “software development” include peace, prosperity, history, culture, education, entertainment and the rich diversity of the society. With these elements in place, bountiful benefits can be achieved.
Let's reflect on the examples that I have shared earlier. What allows the children to run freely in a playground or why do young executives have the luxury to read the newspaper on their way to work or how does one get students to perform at a music festival or run a carnival for families to enjoy?
There is probably more than one answer to all of the questions. One thing that is common is the fact that all these activities are made possible when the city is allowed to flourish, free of crime and has world class facilities for people.
We can achieve the same by changing our mindset from “wait-an- see” to “let's explore”. We can work together to prevent crime and encourage the use of public amenities such as parks with care through education and public awareness. An improved public transportation system to ease traffic congestion and enhance workforce efficiency is definitely a must.
In terms of human resources development, a well thought and long-term plan is required to retain local talent and attract professionals from abroad. Educational institutions must provide a high level of quality education and encourage students to have a balance exposure to the arts and sciences in order to cultivate greater creativity which would benefit the society as a whole.
To generate a greater sense of belonging and to promote community living, city stakeholders can organise more social events and entertainment events, such as cultural performances, open air concerts, carnivals and sporting events. Significant events will bring in the tourists and can eventually become attractions for the city.
Living in a multi-racial and multi-cultural society, we get to enjoy the differences that come with this diversity and uniqueness. For example, we are pampered with a seemingly endless variety of food and eating out is a real gastronomic treat. Imagine having a simple meal and drink of your choice at a mamak stall and paying less than RM10 for the whole dining experience. Malaysia, especially KL, is a gourmet centre for the locals and tourists alike. I believe every Malaysian would attest to that and agree that food is the common element that brings people together.
We should therefore put emphasis on sustaining and enhancing this social and cultural uniqueness to our benefit. Each of us plays a part in contributing to the transformation of KL and of the country. Let us start by equipping ourselves with good practices so that KL can earn the recognition as a world class city and place Malaysia more prominently on the world map.
The diversity of our food, culture and heritage is the hidden gems ready to be uncovered and once discovered and polished, they will make KL and Malaysia shine and reveal their true beauty.
Datuk Alan Tong is the group chairman of Bukit Kiara Properties, he was the FIABCI World President in 2005-2006 and was recently named Property Man of The Year 2010 by FIABCI Malaysia.
By The Star (by Datuk Alan Tong)
Singapore move likely to benefit Iskandar
JOHOR BARU: Property developers in Iskandar Malaysia are expected to benefit from the new ruling introduced by Singapore for foreigners buying private properties in the republic.
The move was introduced on Wednesday to cool private residential property prices in the island state which are on the uptrend despite a slowing economy.
Johor Real Estate and Housing Developers Association branch chairman Simon Heng said foreigners buying properties in Singapore for investment might look elsewhere in the region.
“With Iskandar Malaysia progressing well since its inception five years ago, these buyers (foreigners and Singaporeans) are most probably looking at Johor Baru,’’ he told StarBizWeek.
Heng said prices of residential properties in Johor were much lower than those in Singapore and Johor’s close proximity with the republic was an added advantage compared with places like Kuala Lumpur and Penang.
He said developers with projects in Nusajaya would benefit the most as there were no restrictions on property ownership by foreigners, including Singaporeans.
On the other hand, areas outside Nusajaya in Iskandar did not enjoy the privilege and in places where the 30% quota was imposed on developers selling residential properties worth RM500,000 and above, Heng said.
Another strong selling point for Nusajaya was its location, not far from the second link crossing, which made it a favourite place for Singaporeans living in Johor Baru but working in the island, he added.
UEM Land Holdings Bhd is the master developer of the 9,308ha Nusajaya which is the key driver of Iskandar and one of the five flagship development zones in the country’s first economic region.
Nusajaya comprises seven signature developments – Kota Iskandar (Johor State New Administrative Centre), Southern Industrial and Logistics Clusters, Puteri Harbour Waterfront Development, EduCity, Medical City, International Destination Resort and Residential Developments.
Other flagship development zones in Iskandar are the Johor Baru City Centre, Eastern Gate Development Zone, Western Gate Development Zone and Kulai-Senai.
“Rehda members are hoping that the special treatment accorded to Nusajaya would be extended to other development zones in Iskander as well,’’ he said.
Meanwhile, Daiman Development Bhd general manager Siah Chin Leong said it was still too early to see the impact on the Johor Baru property market following the new ruling.
He said majority of foreigners buying private residential properties in Singapore were investors and high net income individuals who already owned properties in other major cities in the world.
Siah said overseas investors were particularly the affluent Chinese from the mainland, Indonesian Chinese, Indian nationals and, to some extent, Malaysians, were flocking to buy properties in Singapore.
Berinda Group sales manager Lim Sung Heng expected that there would be a spill-over effect from the ruling on the Johor Baru property market probably within the next few months.
He said the state government and other relevant agencies must make more effort to make Iskander a preferred destination for property buyers not only Singaporeans but also other nationalities.
By The Star
The move was introduced on Wednesday to cool private residential property prices in the island state which are on the uptrend despite a slowing economy.
Johor Real Estate and Housing Developers Association branch chairman Simon Heng said foreigners buying properties in Singapore for investment might look elsewhere in the region.
“With Iskandar Malaysia progressing well since its inception five years ago, these buyers (foreigners and Singaporeans) are most probably looking at Johor Baru,’’ he told StarBizWeek.
Heng said prices of residential properties in Johor were much lower than those in Singapore and Johor’s close proximity with the republic was an added advantage compared with places like Kuala Lumpur and Penang.
He said developers with projects in Nusajaya would benefit the most as there were no restrictions on property ownership by foreigners, including Singaporeans.
On the other hand, areas outside Nusajaya in Iskandar did not enjoy the privilege and in places where the 30% quota was imposed on developers selling residential properties worth RM500,000 and above, Heng said.
Another strong selling point for Nusajaya was its location, not far from the second link crossing, which made it a favourite place for Singaporeans living in Johor Baru but working in the island, he added.
UEM Land Holdings Bhd is the master developer of the 9,308ha Nusajaya which is the key driver of Iskandar and one of the five flagship development zones in the country’s first economic region.
Nusajaya comprises seven signature developments – Kota Iskandar (Johor State New Administrative Centre), Southern Industrial and Logistics Clusters, Puteri Harbour Waterfront Development, EduCity, Medical City, International Destination Resort and Residential Developments.
Other flagship development zones in Iskandar are the Johor Baru City Centre, Eastern Gate Development Zone, Western Gate Development Zone and Kulai-Senai.
“Rehda members are hoping that the special treatment accorded to Nusajaya would be extended to other development zones in Iskander as well,’’ he said.
Meanwhile, Daiman Development Bhd general manager Siah Chin Leong said it was still too early to see the impact on the Johor Baru property market following the new ruling.
He said majority of foreigners buying private residential properties in Singapore were investors and high net income individuals who already owned properties in other major cities in the world.
Siah said overseas investors were particularly the affluent Chinese from the mainland, Indonesian Chinese, Indian nationals and, to some extent, Malaysians, were flocking to buy properties in Singapore.
Berinda Group sales manager Lim Sung Heng expected that there would be a spill-over effect from the ruling on the Johor Baru property market probably within the next few months.
He said the state government and other relevant agencies must make more effort to make Iskander a preferred destination for property buyers not only Singaporeans but also other nationalities.
By The Star
Foreigners and PRs have to pay more stamp duties in Singapore
On Wednesday, The Singapore government imposed a new 10% stamp duty on foreigners and companies buying private residential property in the city state. The move, its fifth in the past two years, is the first in 15 years targeted at foreign buyers.
The stamp duty, effective from Dec 8, is in addition to the existing buyers' stamp duty, which is 1% for the first S$180,000 of the purchase price, 2% for the next S$180,000 and 3% for the rest, The Straits Times reported.
Permanent residents who already own a property, and who are buying a second or subsequent property, will now have to pay an extra stamp duty of 3%. Singaporeans who already own two properties and are buying a third or subsequent property will also pay extra stamp duty of 3%.
For a S$1 mil property, a foreigner will have to pay an additional buyer's stamp duty of S$100,000 on top of the current S$24,600.
The move underscores two important issues.
The first, that inspite of the “open and free” market system there, the government is ready to swallow the bitter pill of plying measures that may well add to an already weakening Singapore economy, if those measures were to be the salvation of the country's greater economy in the long-term.
The second is its timing. Why, at this juncture when European leaders are meeting this week in an attempt to solve the eurozone crisis?
Thus far, foreigners and Permanent Residents, many of whom are Malaysians, have enjoyed a fairly “open and free market” when it comes to property ownership. Until Wednesday, they faced only certain restrictions in buying landed homes.
Notwithstanding this open, free and transparent system, Singapore has a two-tiered property market. There is the HDB (or Housing Development Board) and the private residential market. HDB housing makes up the bulk of the market, at about 80%. Private residential market accounts for only 20%.
The fact that the government is concerned about prices shooting further in this 20% portion underscores the primacy of the property sector in the country's greater economy.
It also underscores its vast exposure in terms of value, that this 20% commands in Singapore's property market. This private residential portion is primarily owned by foreigners where prices are many times that of the HBD portion.
In the event the eurozone talks hit a snag due to disagreements among the eurozone members this weekend, and because of Singapore's high foreign exposure, any price fall in that 20% portion will also affect the HBD portion.
In any market where there is a large foreign exposure, there will be a greater degree of volatility because foreign buyers will be the first to leave that market. They will not be staying around to weather the storm. It is the PR holders and citizens who will be staying put.
Foreign buyers accounted for 19% of all private residential property purchases in the second half of this year, up from 7% in the first half of 2009. These figures exclude purchases by PRs, The Straits Times reported.
Sales of new private homes hit a record 16,292 last year. This year looks to be another banner year with 13,688 units sold in the first 10 months, Straits Times reported. That imposition of the stamp duty is sending a message to investors and speculators that the government is seriously concerned about the formation of any bubbles in that 20% private residential portion.
Let us return to Malaysia. For years, property consultants and developers have been trying hard to sell high-end properties, both landed and high-rise to foreigners. They are at a loss why despite comparatively low prices in Malaysia, our properties have not enjoyed the same attention as those in Singapore, Hong Kong, China, Vietnam and other southeast Asian countries.
The fact is, low prices alone will not attract foreign buyers. While property ownership seems easy enough foreigners can buy residentials exceeding RM500,000 there are many other factors that play an important role. Notwithstanding all these, do we want a large foreign exposure? There are mixed views about this among property consultants, developers and government.
It is a fact that the Malaysian property sector will not have the global intricacies tied up with being an international financial hub, so we need not be too worried about that. But we do need to mull over our own property sector as a result of Singapore's move and consider how we can fine-tune our property sector less the threat of eurozone woes come knocking on our doors. We do have a lot of high-end properties waiting to be sold and authorities who approve such projects need to consider today's global climate.
Assistant news editor Thean Lee Cheng has two questions: Do we want a large foreign exposure? And if not, what are we to do with the thousands of units of high-end housing which are unsold today?
By The Star
The stamp duty, effective from Dec 8, is in addition to the existing buyers' stamp duty, which is 1% for the first S$180,000 of the purchase price, 2% for the next S$180,000 and 3% for the rest, The Straits Times reported.
Permanent residents who already own a property, and who are buying a second or subsequent property, will now have to pay an extra stamp duty of 3%. Singaporeans who already own two properties and are buying a third or subsequent property will also pay extra stamp duty of 3%.
For a S$1 mil property, a foreigner will have to pay an additional buyer's stamp duty of S$100,000 on top of the current S$24,600.
The move underscores two important issues.
The first, that inspite of the “open and free” market system there, the government is ready to swallow the bitter pill of plying measures that may well add to an already weakening Singapore economy, if those measures were to be the salvation of the country's greater economy in the long-term.
The second is its timing. Why, at this juncture when European leaders are meeting this week in an attempt to solve the eurozone crisis?
Thus far, foreigners and Permanent Residents, many of whom are Malaysians, have enjoyed a fairly “open and free market” when it comes to property ownership. Until Wednesday, they faced only certain restrictions in buying landed homes.
Notwithstanding this open, free and transparent system, Singapore has a two-tiered property market. There is the HDB (or Housing Development Board) and the private residential market. HDB housing makes up the bulk of the market, at about 80%. Private residential market accounts for only 20%.
The fact that the government is concerned about prices shooting further in this 20% portion underscores the primacy of the property sector in the country's greater economy.
It also underscores its vast exposure in terms of value, that this 20% commands in Singapore's property market. This private residential portion is primarily owned by foreigners where prices are many times that of the HBD portion.
In the event the eurozone talks hit a snag due to disagreements among the eurozone members this weekend, and because of Singapore's high foreign exposure, any price fall in that 20% portion will also affect the HBD portion.
In any market where there is a large foreign exposure, there will be a greater degree of volatility because foreign buyers will be the first to leave that market. They will not be staying around to weather the storm. It is the PR holders and citizens who will be staying put.
Foreign buyers accounted for 19% of all private residential property purchases in the second half of this year, up from 7% in the first half of 2009. These figures exclude purchases by PRs, The Straits Times reported.
Sales of new private homes hit a record 16,292 last year. This year looks to be another banner year with 13,688 units sold in the first 10 months, Straits Times reported. That imposition of the stamp duty is sending a message to investors and speculators that the government is seriously concerned about the formation of any bubbles in that 20% private residential portion.
Let us return to Malaysia. For years, property consultants and developers have been trying hard to sell high-end properties, both landed and high-rise to foreigners. They are at a loss why despite comparatively low prices in Malaysia, our properties have not enjoyed the same attention as those in Singapore, Hong Kong, China, Vietnam and other southeast Asian countries.
The fact is, low prices alone will not attract foreign buyers. While property ownership seems easy enough foreigners can buy residentials exceeding RM500,000 there are many other factors that play an important role. Notwithstanding all these, do we want a large foreign exposure? There are mixed views about this among property consultants, developers and government.
It is a fact that the Malaysian property sector will not have the global intricacies tied up with being an international financial hub, so we need not be too worried about that. But we do need to mull over our own property sector as a result of Singapore's move and consider how we can fine-tune our property sector less the threat of eurozone woes come knocking on our doors. We do have a lot of high-end properties waiting to be sold and authorities who approve such projects need to consider today's global climate.
Assistant news editor Thean Lee Cheng has two questions: Do we want a large foreign exposure? And if not, what are we to do with the thousands of units of high-end housing which are unsold today?
By The Star
Friday, December 9, 2011
SP Setia targets RM4bil in property sales
SHAH ALAM: SP Setia Bhd posted a 30% year-on-year jump in net profit to RM327.97mil for its financial year ended Oct 31, 2011 (FY11). The property developer attributed this mainly to higher selling prices for new launches and the stabilisation in the prices of construction materials. Revenue also increased 27.9% to RM2.23bil.
The group also set a new full-year sales record in FY11 of RM3.29bil, a 42% increase from the previous record of RM2.31bil set in FY10.
It was the fourth consecutive year of increase in the group's sales and represented the second consecutive year that total group sales had exceeded the RM2bil mark, said SP Setia in a Bursa Malaysia filing.
Liew: ‘We target 70% of our product range in Singapore to cater to local upgraders.’
(The sales figures are based on the retail pricing of properties sold, while revenue is recognised in the accounts when the developer is paid at the point of purchase and also when construction is completed in stages.)
SP Setia has proposed a final dividend of 9 sen per share. Together with the interim dividend of 5 sen per share, total dividend for the year works out to be 14 sen per share, representing a payout of about 59% of the group's net profit.
The group's profit and revenue were largely derived from property developments in the Klang Valley, Johor Baru and Penang.
Ongoing projects which contributed included Setia Alam and Setia Eco-Park at Shah Alam (Selangor), Setia Walk at Pusat Bandar Puchong (Selangor), Setia Sky Residences at Jalan Tun Razak (Kuala Lumpur), Bukit Indah, Setia Indah, Setia Tropika and Setia Eco Gardens in Johor Baru and Setia Pearl Island and Setia Vista in Penang.
President and chief executive officer Tan Sri Liew Kee Sin said the group was aiming to achieve total new sales of RM4bil in FY12.
“This is despite factors such as the external headwinds from the economic uncertainty in Europe, and Bank Negara's guidelines seeking to further encourage prudence in bank lending,” he told reporters.
About 90% of new sales in FY12 would come from Malaysia, with the balance from foreign markets.
Liew stated that the group had strong branding, and offered an extensive range of products that cater to diverse market needs.
The group's recent launch of its integrated green commercial and mixed residential development, KL EcoCity (Kuala Lumpur), is expected to contribute strongly to sales in FY12.
Other recent launches like Fulton Lane and EcoXuan, the group's maiden project in Melbourne and second project in Vietnam respectively, are expected to also help augment sales in FY12.
Meanwhile, Liew said he was not too concerned about the recent 10% increase in stamp duty for foreigners buying homes in Singapore.
“We target 70% of our product range in Singapore to cater to local upgraders. Foreign buyers will be about 30%, so we do not think there will be much of an impact,” he said.
Liew also said SP Setia was interested in making another bid to secure the project to redevelop London's Battersea Power Station. SP Setia had submitted a 262mil (RM1.3bil) offer for the project in November that was turned down, before recently making a a second bid of 324mil (RM1.6bil) that was also rejected.
By The Star
The group also set a new full-year sales record in FY11 of RM3.29bil, a 42% increase from the previous record of RM2.31bil set in FY10.
It was the fourth consecutive year of increase in the group's sales and represented the second consecutive year that total group sales had exceeded the RM2bil mark, said SP Setia in a Bursa Malaysia filing.
Liew: ‘We target 70% of our product range in Singapore to cater to local upgraders.’
(The sales figures are based on the retail pricing of properties sold, while revenue is recognised in the accounts when the developer is paid at the point of purchase and also when construction is completed in stages.)
SP Setia has proposed a final dividend of 9 sen per share. Together with the interim dividend of 5 sen per share, total dividend for the year works out to be 14 sen per share, representing a payout of about 59% of the group's net profit.
The group's profit and revenue were largely derived from property developments in the Klang Valley, Johor Baru and Penang.
Ongoing projects which contributed included Setia Alam and Setia Eco-Park at Shah Alam (Selangor), Setia Walk at Pusat Bandar Puchong (Selangor), Setia Sky Residences at Jalan Tun Razak (Kuala Lumpur), Bukit Indah, Setia Indah, Setia Tropika and Setia Eco Gardens in Johor Baru and Setia Pearl Island and Setia Vista in Penang.
President and chief executive officer Tan Sri Liew Kee Sin said the group was aiming to achieve total new sales of RM4bil in FY12.
“This is despite factors such as the external headwinds from the economic uncertainty in Europe, and Bank Negara's guidelines seeking to further encourage prudence in bank lending,” he told reporters.
About 90% of new sales in FY12 would come from Malaysia, with the balance from foreign markets.
Liew stated that the group had strong branding, and offered an extensive range of products that cater to diverse market needs.
The group's recent launch of its integrated green commercial and mixed residential development, KL EcoCity (Kuala Lumpur), is expected to contribute strongly to sales in FY12.
Other recent launches like Fulton Lane and EcoXuan, the group's maiden project in Melbourne and second project in Vietnam respectively, are expected to also help augment sales in FY12.
Meanwhile, Liew said he was not too concerned about the recent 10% increase in stamp duty for foreigners buying homes in Singapore.
“We target 70% of our product range in Singapore to cater to local upgraders. Foreign buyers will be about 30%, so we do not think there will be much of an impact,” he said.
Liew also said SP Setia was interested in making another bid to secure the project to redevelop London's Battersea Power Station. SP Setia had submitted a 262mil (RM1.3bil) offer for the project in November that was turned down, before recently making a a second bid of 324mil (RM1.6bil) that was also rejected.
By The Star
Mutual gain for SP Setia, PNB
SHAH ALAM: The proposed management agreement between property developer SP Setia Bhd, its president and chief executive officer Tan Sri Liew Kee Sin and Permodalan Nasional Bhd (PNB) is a “win-win” for everyone.
Liew told reporters that the proposed management agreement was now subject to the approval of the Securities Commission (SC), which has the option of requesting for an extraordinary general meeting (EGM) concerning the proposal.
“If the SC clears the proposal, then the management agreement will become part and parcel of the offer documents (by PNB). Until then, we are not allowed to talk about it,” said Liew.
In late-September, PNB and parties acting in concert announced a takeover bid of the property developer at RM3.90 per SP Setia share and 91 sen per warrant.
Liew added that the proposed management agreement, which was thrashed out over the last six weeks, was the first of its kind in Malaysia. Hence, the SC may require the company to hold an EGM.
“There has never been a takeover, and then (the parties) do a management agreement. Have you ever heard of this in Malaysia?”
Liew said in the event the proposed management agreement was not approved by the SC, SP Setia could make an appeal to the regulator.
Last Friday, Bursa Malaysia was told that SP Setia, Liew and PNB had proposed to enter into an agreement to formalise the incentives and management rights relating to the management and general conduct of the business of SP Setia.
A recent StarBiz report quoted a source as saying PNB might be paying out lucrative bonuses and stock options to SP Setia’s top management staff in order to persuade them to stay on with the group.
There had been fears expressed earlier that PNB’s move to take control of SP Setia might lead to an exodus of the group’s management staff.
By The Star (by THOMAS HUONG)
Liew told reporters that the proposed management agreement was now subject to the approval of the Securities Commission (SC), which has the option of requesting for an extraordinary general meeting (EGM) concerning the proposal.
“If the SC clears the proposal, then the management agreement will become part and parcel of the offer documents (by PNB). Until then, we are not allowed to talk about it,” said Liew.
In late-September, PNB and parties acting in concert announced a takeover bid of the property developer at RM3.90 per SP Setia share and 91 sen per warrant.
Liew added that the proposed management agreement, which was thrashed out over the last six weeks, was the first of its kind in Malaysia. Hence, the SC may require the company to hold an EGM.
“There has never been a takeover, and then (the parties) do a management agreement. Have you ever heard of this in Malaysia?”
Liew said in the event the proposed management agreement was not approved by the SC, SP Setia could make an appeal to the regulator.
Last Friday, Bursa Malaysia was told that SP Setia, Liew and PNB had proposed to enter into an agreement to formalise the incentives and management rights relating to the management and general conduct of the business of SP Setia.
A recent StarBiz report quoted a source as saying PNB might be paying out lucrative bonuses and stock options to SP Setia’s top management staff in order to persuade them to stay on with the group.
There had been fears expressed earlier that PNB’s move to take control of SP Setia might lead to an exodus of the group’s management staff.
By The Star (by THOMAS HUONG)
Magna Prima plans projects worth RM700mil GDV next year
Rahadian (left) exchanging documents with Al-Madinah International Foundation chairman Professor Ahmad A A Al-Sheha.
KUALA LUMPUR: Magna Prima Bhd will launch property projects with gross development value (GDV) totalling RM700mil next year.
These included Boulevard Business Park Phase 2 in Jalan Kuching, Kuala Lumpur, consisting of serviced apartments with a GDV of RM220mil, executive director Datuk Rahadian Mahmud Mohammad Khalil said.
He was speaking to reporters after an agreement signing for the sale of the company's U1 office tower blocks to the Al-Madinah International Foundation. The 15-storey single tower in Shah Alam with about 92,700 sq ft of gross floor space has a GDV of RM29mil.
The Middle Eastern-based educational foundation, which will be the sole tenant, will rename the building MIF Tower and will make it its headquarters.
Rahadian said Magna Prima would also launch the second phase of its Alam d'16 consisting superlink homes in Shah Alam with a GDV of RM210mil and its first overseas property project, Dynasty Living, in Melbourne, Australia, with the remaining unsold GDV of RM270mil.
“We will offer this remainder of the Australian apartments, which have been 60% sold so far, to locals in January 2012. This development is located in the central business district opposite Victoria Market, a very prime location,” he said.
Rahadian said the Australian system for selling properties was different from Malaysia as “Australia practices the build-then-sell concept, which means Magna Prima would not be able to realise revenue from its Australian development until the handover is done”.
“We have to build first while the initial 10% deposit paid by buyers will be placed in a trust fund. We use our own money to build for the time being,” he added.
Rahadian said property sales were expected to remain good next year. “We think there are concerns for office space but the outlook for residential property market remains good,” he said.
By The Star
S’pore property shares plunge on cooling move
SINGAPORE: Shares of Singapore developers fell sharply after the government took new steps to cool property prices with the toughest measures aimed at foreign buyers who have become increasingly visible in the residential sector.
Effective yesterday, buyers who are not Singapore citizens or permanent residents will have to pay an additional 10% stamp duty when they buy a home, effectively raising the purchase price by 10%.
Previous policy measures had targeted speculators by imposing an extra duty on those who bought and sold properties within four years and limiting the amount of loans available to prospective buyers.
“It probably signals a change in policy. The government had previously been very consistent in welcoming foreign investments, so that is why the new policy came as a shock,” said Colin Tan, head of research and consultancy at Chesterton Suntec International.
Singapore residential prices have held up well despite a slowing economy, helped by low interest rates and rising demand from overseas investors, in particular those from China.
The surprise an-nouncement on Wednesday night hit shares of property developers yesterday.
CapitaLand Ltd, South-East Asia's largest developer, fell as much as 8% to S$2.40, while No. 2 ranked City Developments Ltd dropped 7.3% to S$9.29.
Shares of Ho Bee Investment Ltd, which focuses on high-end condominiums, fell by as much as 12.1% to S$1.09.
By Reuters
Effective yesterday, buyers who are not Singapore citizens or permanent residents will have to pay an additional 10% stamp duty when they buy a home, effectively raising the purchase price by 10%.
Previous policy measures had targeted speculators by imposing an extra duty on those who bought and sold properties within four years and limiting the amount of loans available to prospective buyers.
“It probably signals a change in policy. The government had previously been very consistent in welcoming foreign investments, so that is why the new policy came as a shock,” said Colin Tan, head of research and consultancy at Chesterton Suntec International.
Singapore residential prices have held up well despite a slowing economy, helped by low interest rates and rising demand from overseas investors, in particular those from China.
The surprise an-nouncement on Wednesday night hit shares of property developers yesterday.
CapitaLand Ltd, South-East Asia's largest developer, fell as much as 8% to S$2.40, while No. 2 ranked City Developments Ltd dropped 7.3% to S$9.29.
Shares of Ho Bee Investment Ltd, which focuses on high-end condominiums, fell by as much as 12.1% to S$1.09.
By Reuters
Hektar REIT buys assets for RM181m
PETALING JAYA: Hektar Real Estate Investment Trust’s (REIT) trustee AmTrustee Bhd has entered into two conditional sale and purchase agreements for the acquisition of two malls from Sri Awona Sdn Bhd and Awona Land Sdn Bhd for a total RM181mil.
The trustee signed an agreement for a freehold three-storey mall, Landmark Central Shopping Centre, located in Kulim worth RM98mil and another agreement worth RM98mil for 110 strata parcels within the freehold six-storey Central Square Shopping Centre in Sungai Patani, Kedah.
By The Star
The trustee signed an agreement for a freehold three-storey mall, Landmark Central Shopping Centre, located in Kulim worth RM98mil and another agreement worth RM98mil for 110 strata parcels within the freehold six-storey Central Square Shopping Centre in Sungai Patani, Kedah.
By The Star
Thursday, December 8, 2011
SP Setia targets RM4b sales in FY2012
SP Setia Bhd targets RM4 billion sales in its financial year ending Oct 31, 2012, driven by both local and foreign property sales.
President and CEO Tan Sri Liew Kee Sin said the group achieved historic highs in both sales and profits for its financial year ended Oct 31, 2011.
The group's full-year sales for FY2011 of RM3.29 billion represents a 42 per cent increase from its previous record high of RM2.31 billion set in FY2010.
The group's profit after tax for FY2011 of RM322.4 million also increased 28 per cent from RM251.8 million in the previous year, the highest ever profit achieved by SP Setia for a financial year.
"In spite of the difficult economic environment, we are confident we can achieve the target as we are able to deliver products that people want to buy," he said at a media briefing on SP Setia's financial results.
Liew said sustained demand for properties in the group's existing projects in the Klang Valley, Johor Baharu and Penang will continue to underpin the group's sales performance in FY2012.
FY2012, he said, will also see the launch of a slew of new projects which will enable the group to tap into new sources and corridors of growth to expand its market share.
"These include Setia Eco Glades in Cyberjaya and Setia Business Park II in Tebrau Johor, and the Group's first high-rise luxury integrated residential and commercial project in JB City Centre called 88 Setia," he said.
Over in East Malaysia, the group will shortly be launching its maiden project in Sabah, Aeropad -- an integrated commercial development located in Kota Kinabalu.
On the international front, Fulton Lane in Melbourne is also doing well, and the group targets to launch the first development in Singapore to be called 18 Woodsville during the first half of 2012, he said.
"In Vietnam, both Eco Lakes and EcoXuan, the group's second project, are expected to help augment sales," he said. SP Setia has proposed a final dividend of nine sen per share.
Together with the interim dividend of five sen per share, total dividend for the year works out to 14 sen per share, representing a payout of approximately 59 per cent of the group's net profit.
Liew said the group is also keen on the London property market and is looking at opportunities.
As for the Singapore property market, he said, the group's property project there is focusing on locals who are upgrading to better homes.
On Sept 28, 2011, SP Setia received a notice of take-over offer from Maybank Investment Bank Bhd (Maybank IB) on behalf of Permodalan Nasional Bhd (PNB) in respect of PNB's obligation to extend a take-over offer.
On Oct 14, the Securities Commission (SC) approved the takeover offer by PNB. On Dec 2, 2011 Maybank IB, on behalf of PNB, submitted an application to the SC in relation to the proposed formalisation of certain incentives and management rights relating to the management and general conduct of business of the SP Setia group of companies to be entered into between PNB, Liew and SP Setia Bhd.
The proposed arrangement and the offer document is pending the approval of the SC. Liew said the group is waiting for the SC's clearance.
The management agreement submitted to the SC is a win-win plan for everybody in PNB and SP Setia, he added.
By Bernama
President and CEO Tan Sri Liew Kee Sin said the group achieved historic highs in both sales and profits for its financial year ended Oct 31, 2011.
The group's full-year sales for FY2011 of RM3.29 billion represents a 42 per cent increase from its previous record high of RM2.31 billion set in FY2010.
The group's profit after tax for FY2011 of RM322.4 million also increased 28 per cent from RM251.8 million in the previous year, the highest ever profit achieved by SP Setia for a financial year.
"In spite of the difficult economic environment, we are confident we can achieve the target as we are able to deliver products that people want to buy," he said at a media briefing on SP Setia's financial results.
Liew said sustained demand for properties in the group's existing projects in the Klang Valley, Johor Baharu and Penang will continue to underpin the group's sales performance in FY2012.
FY2012, he said, will also see the launch of a slew of new projects which will enable the group to tap into new sources and corridors of growth to expand its market share.
"These include Setia Eco Glades in Cyberjaya and Setia Business Park II in Tebrau Johor, and the Group's first high-rise luxury integrated residential and commercial project in JB City Centre called 88 Setia," he said.
Over in East Malaysia, the group will shortly be launching its maiden project in Sabah, Aeropad -- an integrated commercial development located in Kota Kinabalu.
On the international front, Fulton Lane in Melbourne is also doing well, and the group targets to launch the first development in Singapore to be called 18 Woodsville during the first half of 2012, he said.
"In Vietnam, both Eco Lakes and EcoXuan, the group's second project, are expected to help augment sales," he said. SP Setia has proposed a final dividend of nine sen per share.
Together with the interim dividend of five sen per share, total dividend for the year works out to 14 sen per share, representing a payout of approximately 59 per cent of the group's net profit.
Liew said the group is also keen on the London property market and is looking at opportunities.
As for the Singapore property market, he said, the group's property project there is focusing on locals who are upgrading to better homes.
On Sept 28, 2011, SP Setia received a notice of take-over offer from Maybank Investment Bank Bhd (Maybank IB) on behalf of Permodalan Nasional Bhd (PNB) in respect of PNB's obligation to extend a take-over offer.
On Oct 14, the Securities Commission (SC) approved the takeover offer by PNB. On Dec 2, 2011 Maybank IB, on behalf of PNB, submitted an application to the SC in relation to the proposed formalisation of certain incentives and management rights relating to the management and general conduct of business of the SP Setia group of companies to be entered into between PNB, Liew and SP Setia Bhd.
The proposed arrangement and the offer document is pending the approval of the SC. Liew said the group is waiting for the SC's clearance.
The management agreement submitted to the SC is a win-win plan for everybody in PNB and SP Setia, he added.
By Bernama
Pavilion REIT seeks expansion
PAVILION Real Estate Investment Trust (Pavilion REIT), the largest retail REIT in Malaysia, is eyeing more local assets to spur growth.
Pavilion REIT Management Sdn Bhd chief executive officer Philip Ho said the trust is seeking opportunities to expand its assets in Penang, Johor and the Klang Valley.
Ho said Pavillion REIT will evaluate any financially viable investment opportunity that comes around.
"As a retail real estate investment trust, our duty is to acquire malls and build up the portfolio," he told reporters after its listing ceremony here.
Ho said the company's trustees had signed three rights of first refusal (ROFR) to acquire Farenheit88, the Pavilion Mall's extension, and a mall in USJ Subang Jaya.
With an appraised value of RM3.54 billion, Pavilion REIT is currently made up of two assets - Pavilion Mall and Pavilion Tower.
The mall, which contributes 96.4 per cent to the appraised value, has 1.3 million sq ft of net lettable area.
It boasts of about 450 retail tenants, making it the largest premium retail fashion mall in Malaysia.
Pavilion REIT yesterday fetched a 13.3 per cent premium over its offer price on its debut on Bursa Malaysia.
It opened at RM1.03, 13 sen higher than its institutional price of 90 sen, with 15.7 million unit shares traded.
Ho said the listing provides the company with direct access to capital markets, thereby strengthening its financial capacity to seize new opportunities in the country.
"We are committed to enhance unitholders' return and value, both through the organic growth of our existing portfolio as well as visible growth via acquisitions," he added.
By Business Times
New measures to cool Singapore housing mart
SINGAPORE: Singapore yesterday announced new measures to cool the city-state’s housing market, saying foreigners who buy private homes will have to pay an additional stamp duty equal to 10 per cent of the property value.
Permanent residents who already own a Singapore home will pay an additional stamp duty of three per cent when they buy a second and subsequent properties, while citizens who purchase a third and subsequent homes will pay three per cent.
By Reuters
Permanent residents who already own a Singapore home will pay an additional stamp duty of three per cent when they buy a second and subsequent properties, while citizens who purchase a third and subsequent homes will pay three per cent.
By Reuters
RM26m properties sold at HomeGuru event
More than RM26 million worth of property was snapped up by Singaporean property buyers at HomeGuru’s inaugural Malaysia Property Showcase in Singapore on Dec 3-4.
The event drew almost 900 property buyers and saw over 300 units of real estate sold. It involved the participation of six leading Malaysian developers, namely Andaman Group, Iereka Corporation Bhd, Lone Pine Group, Sime Darby Property, The Haven Sdn Bhd and UEM Land.
In a statement today, PropertyGuru Group chief executive officer Steve Malhuish said, "In collaboration with its Singaporean counterpart, PropertyGuru.com.sg, HomeGuru established the Malaysia Property Showcase 2011 to create awareness of key Malaysian developments regionally, especially amongst interested investors in Singapore, Indonesia, Hong Kong and Thailand.
It functioned as an optimal platform for the participating developers to network amongst each other and with prospective international investors, he added.
Noting the event's success, Andaman Group head of sales and marketing Datuk Vincent Tiew said: "We are very inclined towards participating in future showcases with PropertyGuru Group at the helm."
By Bernama
The event drew almost 900 property buyers and saw over 300 units of real estate sold. It involved the participation of six leading Malaysian developers, namely Andaman Group, Iereka Corporation Bhd, Lone Pine Group, Sime Darby Property, The Haven Sdn Bhd and UEM Land.
In a statement today, PropertyGuru Group chief executive officer Steve Malhuish said, "In collaboration with its Singaporean counterpart, PropertyGuru.com.sg, HomeGuru established the Malaysia Property Showcase 2011 to create awareness of key Malaysian developments regionally, especially amongst interested investors in Singapore, Indonesia, Hong Kong and Thailand.
It functioned as an optimal platform for the participating developers to network amongst each other and with prospective international investors, he added.
Noting the event's success, Andaman Group head of sales and marketing Datuk Vincent Tiew said: "We are very inclined towards participating in future showcases with PropertyGuru Group at the helm."
By Bernama
River of Life beautification works valued at RM1bil
KUALA LUMPUR: The River of Life (RoL) project beautification works portion, of which the Ekovest-MRCB joint venture (JV) is said to be ultimately eyeing, is worth RM1bil, analysts said.
It is understood that the entire RM2.2bil project which was announced on Tuesday for the RoL project includes the total cost of land development and sales adjoining the Klang and Gombak rivers with a total stretch of 10.7km.
Thus, if the Ekovest-MRCB JV is successful in attaining the project, Ekovest Bhd which holds a 60% stake in the JV would be getting RM600mil worth of jobs while RM400mil worth will go to Malaysian Resources Corp Bhd (MRCB).
The Ekovest-MRCB JV was on Tuesday appointed the project delivery partner for the first phase of the RM2.2bil RoL project to transform the rivers running through the heart of Kuala Lumpur through river rehabilitation, beautification of riverbank and river corridor developments.
It is also understood that this project, if the Ekovest-MRCB venture were to eventually secure it, is expected to see Ekovest taking a front lead’s role given its majority stake in the JV.
Ekovest shares closed 4 sen higher to RM2.64 yesterday but with little volume traded of only 10,000 shares.
However, this project is likely to positively impact smaller-capitalised Ekovest more than MRCB should the Government decide to award the beautification works project to the Ekovest-MRCB JV.
At this stage, with the current appointments, the Ekovest-MRCB JV will earn a fee of RM22mil equivalent to 1% of the project value over the project period of three years, which is an insignificant amount of RM2.9mil per year to MRCB over the next three years.
RHB Research in a report yesterday said it expected the formal awarding of the contract for the beautification works and the physical works of this project to only start next year.
Analysts are positive on the project and RHB Research had rated MRCB a “trading buy” with a target price of RM2.55 while Hong Leong Investment Bank had a target price of RM2.22 on the stock.
By The Star
It is understood that the entire RM2.2bil project which was announced on Tuesday for the RoL project includes the total cost of land development and sales adjoining the Klang and Gombak rivers with a total stretch of 10.7km.
Thus, if the Ekovest-MRCB JV is successful in attaining the project, Ekovest Bhd which holds a 60% stake in the JV would be getting RM600mil worth of jobs while RM400mil worth will go to Malaysian Resources Corp Bhd (MRCB).
The Ekovest-MRCB JV was on Tuesday appointed the project delivery partner for the first phase of the RM2.2bil RoL project to transform the rivers running through the heart of Kuala Lumpur through river rehabilitation, beautification of riverbank and river corridor developments.
It is also understood that this project, if the Ekovest-MRCB venture were to eventually secure it, is expected to see Ekovest taking a front lead’s role given its majority stake in the JV.
Ekovest shares closed 4 sen higher to RM2.64 yesterday but with little volume traded of only 10,000 shares.
However, this project is likely to positively impact smaller-capitalised Ekovest more than MRCB should the Government decide to award the beautification works project to the Ekovest-MRCB JV.
At this stage, with the current appointments, the Ekovest-MRCB JV will earn a fee of RM22mil equivalent to 1% of the project value over the project period of three years, which is an insignificant amount of RM2.9mil per year to MRCB over the next three years.
RHB Research in a report yesterday said it expected the formal awarding of the contract for the beautification works and the physical works of this project to only start next year.
Analysts are positive on the project and RHB Research had rated MRCB a “trading buy” with a target price of RM2.55 while Hong Leong Investment Bank had a target price of RM2.22 on the stock.
By The Star
Hektar REIT said buying 2 malls for RM180m
Hektar REIT is buying two malls in Kedah for an estimated RM180 million, sources say.
The malls are believed to be Kulim Landmark Central and Central Square Sg Petani.
An announcement from the company is expected to be made as early as today.
By Business Times
The malls are believed to be Kulim Landmark Central and Central Square Sg Petani.
An announcement from the company is expected to be made as early as today.
By Business Times
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