SINGAPORE: PropertyGuru, Singapore’s leading property site, revealed its fourth quarter 2011 survey results on the property market sentiment in Singapore.
The survey indicates that home buyers and investors expect the new government measures to lower the cost of property, compared to third quarter 2011.
Largely due to the impact of ABSD (Additional Buyer’s Stamp Duty), 52% believe that property prices will decrease in the next six months.
The government has imposed an ABSD for private property of between 3% and 10% for Singaporeans, Permanent Residents and foreigners to moderate investment demand for private residential property and promote a more stable and sustainable market since Dec 8, 2011.
Rentals were also expected to fall in the same period as a reaction to the availability of future supply.
By Bernama
Wednesday, February 22, 2012
China home prices fall in January
BEIJING: Home prices in more than two thirds of China's major cities continued their slump in January from a month before, the government announced, as moves to cool the market continued to bite.
Of 70 cities tracked by the government, 48 saw prices fall month-on-month, slightly fewer than the 52 cities that recorded negative house price growth in December, the National Bureau of Statistics said, while 22 were seen as stable.
Beijing has introduced a range of measures aimed at curbing the real estate market over the last year, such as bans on buying second homes, hiking minimum down-payments and introducing property taxes in select cities.
But analysts worry the correction could have broader implications for the economy, which is already widely forecast to slow this year from 9.2% growth in 2011.
Premier Wen Jiabao reiterated this week that the government had no plans to relax policy restrictions aimed at cooling the market.
Property analysts EC Harris said in a research note that the slowdown was likely to continue, while warning of the risks for the wider economy.
“Property prices in the mid- to long-term will likely continue to decrease as long as the government's current policies remain in place,” the firm said.
“The Chinese government's tightening policies have been effective at reducing fears of a property bubble.”
But the measures “could lead to a cascading' effect that causes the economy to slow down too much”, it added.
China's property market weakened last year, reflected in slower investment and sales, as the government sought to bring down runaway housing prices on fears of a speculative bubble.
In December, China moved to ease credit by trimming bank reserves but the property industry is waiting to see if the government might relax measures aimed specifically at the sector.
China's Renmin University has said the government would likely relax some market curbs in 2012 due to concerns that slumping prices could hurt growth.
Analysts forecast housing prices could fall even further when the measures are eased, as pent-up supply pours into the market.
By AFP
Tuesday, February 21, 2012
Iskandar waterfront zones open to investors
JOHOR BARU: The doors are now open for investors keen in waterfront development in Iskandar Malaysia.
Businessmen and groups such as the chambers of commerce and industry are encouraged to participate actively in development at the Danga Bay waterfront, the central business district and the Tebrau basin.
The three zones make up the southern part of Iskandar Malaysia, the up-and-rising growth area in the country.
In a media briefing here yesterday, Iskandar Waterfront Holdings (IWH) Bhd chief executive officer Datuk Lim Kang Hoo said infrastructures, such as trunk roads, are already in place.
He added that the three zones are considered the most strategically located in Iskandar Malaysia.
As such, this is an opportunity for businessmen to invest in prime waterfront land to develop high-value projects such as hotels and condominiums.
"Any parties interested to engage in the development of the three areas are encouraged to do so.
"As the areas are part of the urban planning, do not expect to pay a low land premium. This is because we have invested in land reclamation and dredging which do not come cheap," Lim said.
Kumpulan Prasarana Rakyat Johor (KPRJ) chief executive officer Johar Salim Yahaya, who was present at the briefing, said KPRJ, which owns several parcels of waterfront land in Iskandar Malaysia, is merely consolidating pieces of its interest with IWH.
"As we are moving into a different phase of development, we need to have commercial input through our consolidation with IWH," he said.
"We have created a situation which is conducive for development. We need investors to come in as it will be too costly for us to develop everything on our own.
"As a master developer, we will orchestrate the creation of value and to sustain it," Johar added.
By Business Times
Businessmen and groups such as the chambers of commerce and industry are encouraged to participate actively in development at the Danga Bay waterfront, the central business district and the Tebrau basin.
The three zones make up the southern part of Iskandar Malaysia, the up-and-rising growth area in the country.
In a media briefing here yesterday, Iskandar Waterfront Holdings (IWH) Bhd chief executive officer Datuk Lim Kang Hoo said infrastructures, such as trunk roads, are already in place.
He added that the three zones are considered the most strategically located in Iskandar Malaysia.
As such, this is an opportunity for businessmen to invest in prime waterfront land to develop high-value projects such as hotels and condominiums.
"Any parties interested to engage in the development of the three areas are encouraged to do so.
"As the areas are part of the urban planning, do not expect to pay a low land premium. This is because we have invested in land reclamation and dredging which do not come cheap," Lim said.
Kumpulan Prasarana Rakyat Johor (KPRJ) chief executive officer Johar Salim Yahaya, who was present at the briefing, said KPRJ, which owns several parcels of waterfront land in Iskandar Malaysia, is merely consolidating pieces of its interest with IWH.
"As we are moving into a different phase of development, we need to have commercial input through our consolidation with IWH," he said.
"We have created a situation which is conducive for development. We need investors to come in as it will be too costly for us to develop everything on our own.
"As a master developer, we will orchestrate the creation of value and to sustain it," Johar added.
By Business Times
Demand for luxury houses seen to be flattish
PETALING JAYA: Demand for houses priced around RM1mil has dropped and is expected to be flattish throughout this year, a reflection of real estate transaction volumes across the Asia-Pacific, an online survey in Malaysia and a Hong Kong-based report show.
External uncertainties, the general election factor on the local front and a general wariness about a possible bubble in the Malaysian market had dampened the market, said iProperty Group chief executive officer Shaun Di Gregoria.
“We are seeing a reduction in volume for the top-end market. Rental is also expected to come off a bit for the top end,” he said after launching the result of an online survey at iproperty.com.my conducted from Dec 5, 2011 to Jan 19, 2012 involving 3,459 respondents.
The findings are supported by telephone interviews with two property agents.
Despite that, Di Gregorio said, Malaysians were expected to continue to be upbeat about the property market, with interest seen mostly in properties priced between RM400,000 and RM500,000.
The survey revealed that 35.7% of the respondents considered themselves property buyers while 26.2% identified themselves as property owners.
This is part of the first cross-market online property survey conducted by the iProperty Group covering Singapore, Indonesia, Hong Kong and Malaysia that attracted about 8,500 respondents.
Di Gregorio said although various measures had been taken by the authorities to discourage speculation, the Malaysian property market continued to be friendly to buyers.
He said Malaysia was the number one destination for Singaporeans as property prices here were still affordable to them.
“Yield in Singapore and Hong Kong is low because of the high capital cost there. The United States and Europe have their own challenges, so South-East Asia will increase in popularity, with Malaysia being a good market to be in throughout this year. There is positive sentiment to invest here,” he said.
About 40% of the Singaporean respondents said Malaysia was their preferred destination, followed by Australia (19.4%).
Meanwhile, about 40% of Malaysians considered Australia as their preferred overseas property investment destination, 19.8% liked Singapore and 13.7% chose the United Kingdom.
While iProperty Group paints a positive picture of the local property market, 58.6% of those who responded to the survey in Malaysia believed there is a property bubble in this country versus 53.85% of those who responded in Singapore.
On a larger scale, the drop in transaction volume is also reflected in the Asia-Pacific. A quarterly report by the Asia Pacific Real Estate Association (APREA) and Real Capital Analytics said there was a 32% drop in real estate transaction in the Asia-Pacific year-on-year to US$85.3 bil as at Dec 31, 2011.
“It moderated by as much as 18% since the end of the third quarter last year,” APREA said in a statement.
“Concerns over the eurozone debt crisis contributed to the moderation in the fourth quarter. A strong performance by Singapore helped mitigate the declines in other countries,” said APREA chief executive officer Peter Mitchell.
The decline was seen across all industry segments. Transactions in hotels fell 23%, commercial property 20%, land 17%, and apartments 8%. Stripping out land transactions, Japan led in regional sales volume, accounting for 22% of the fourth-quarter sales. This was followed by Australia with 17% and Singapore, 16%.
“Transactions in the region are continuing to be dominated by domestic players,” Mitchell said.
By The Star
External uncertainties, the general election factor on the local front and a general wariness about a possible bubble in the Malaysian market had dampened the market, said iProperty Group chief executive officer Shaun Di Gregoria.
“We are seeing a reduction in volume for the top-end market. Rental is also expected to come off a bit for the top end,” he said after launching the result of an online survey at iproperty.com.my conducted from Dec 5, 2011 to Jan 19, 2012 involving 3,459 respondents.
The findings are supported by telephone interviews with two property agents.
Despite that, Di Gregorio said, Malaysians were expected to continue to be upbeat about the property market, with interest seen mostly in properties priced between RM400,000 and RM500,000.
The survey revealed that 35.7% of the respondents considered themselves property buyers while 26.2% identified themselves as property owners.
This is part of the first cross-market online property survey conducted by the iProperty Group covering Singapore, Indonesia, Hong Kong and Malaysia that attracted about 8,500 respondents.
Di Gregorio said although various measures had been taken by the authorities to discourage speculation, the Malaysian property market continued to be friendly to buyers.
He said Malaysia was the number one destination for Singaporeans as property prices here were still affordable to them.
“Yield in Singapore and Hong Kong is low because of the high capital cost there. The United States and Europe have their own challenges, so South-East Asia will increase in popularity, with Malaysia being a good market to be in throughout this year. There is positive sentiment to invest here,” he said.
About 40% of the Singaporean respondents said Malaysia was their preferred destination, followed by Australia (19.4%).
Meanwhile, about 40% of Malaysians considered Australia as their preferred overseas property investment destination, 19.8% liked Singapore and 13.7% chose the United Kingdom.
While iProperty Group paints a positive picture of the local property market, 58.6% of those who responded to the survey in Malaysia believed there is a property bubble in this country versus 53.85% of those who responded in Singapore.
On a larger scale, the drop in transaction volume is also reflected in the Asia-Pacific. A quarterly report by the Asia Pacific Real Estate Association (APREA) and Real Capital Analytics said there was a 32% drop in real estate transaction in the Asia-Pacific year-on-year to US$85.3 bil as at Dec 31, 2011.
“It moderated by as much as 18% since the end of the third quarter last year,” APREA said in a statement.
“Concerns over the eurozone debt crisis contributed to the moderation in the fourth quarter. A strong performance by Singapore helped mitigate the declines in other countries,” said APREA chief executive officer Peter Mitchell.
The decline was seen across all industry segments. Transactions in hotels fell 23%, commercial property 20%, land 17%, and apartments 8%. Stripping out land transactions, Japan led in regional sales volume, accounting for 22% of the fourth-quarter sales. This was followed by Australia with 17% and Singapore, 16%.
“Transactions in the region are continuing to be dominated by domestic players,” Mitchell said.
By The Star
Mitrajaya unit bags deals worth RM181m
KUALA LUMPUR: Mitrajaya Holdings Bhd’s (MHB) wholly owned unit, Pembinaan Mitrajaya Sdn Bhd (PMSB), yesterday secured three contracts worth RM181.4 million.
The contracts were awarded by Syarikat Prasarana Negara Bhd (SPNB) and Putrajaya Holdings Sdn Bhd.
PMSB was appointed as nominated sub-contractor by SPNB for the extension of Kelana Jaya and Ampang light rail transit lines worth RM46.8 million and RM55.2 million respectively.
It is also the main contractor for the development of 560 units of medium-cost public apartments inclusive of common facilities and eight units of shop offices at Zone 12E and 12F, Precinct 11 in Putrajaya for RM79.4 million.
By Business Times
The contracts were awarded by Syarikat Prasarana Negara Bhd (SPNB) and Putrajaya Holdings Sdn Bhd.
PMSB was appointed as nominated sub-contractor by SPNB for the extension of Kelana Jaya and Ampang light rail transit lines worth RM46.8 million and RM55.2 million respectively.
It is also the main contractor for the development of 560 units of medium-cost public apartments inclusive of common facilities and eight units of shop offices at Zone 12E and 12F, Precinct 11 in Putrajaya for RM79.4 million.
By Business Times
Iris Land in PNG housing project
KUALA LUMPUR: Iris Corp Bhd’s wholly-owned subsidiary, Iris Land Sdn Bhd, has entered into a teaming agreement with Kida Maru Holdings Ltd for a housing project in Port Moresby, Papua New Guinea (PNG), worth RM160 million.
Kida Maru owns 14.75ha of land in Section Granville in Port Moresby with a valid developer’s licence.
It will jointly assist Iris Land in the development of the project that includes developing 275 units of houses.
The development is expected to be funded via project financing to be procured by the company.
By Business Times
Kida Maru owns 14.75ha of land in Section Granville in Port Moresby with a valid developer’s licence.
It will jointly assist Iris Land in the development of the project that includes developing 275 units of houses.
The development is expected to be funded via project financing to be procured by the company.
By Business Times
Tesco launches Thai property fund IPO
TESCO plc, the world's third-largest retailer, launched the initial public offering (IPO) of its Thailand property fund yesterday, aiming to raise up to 18 billion baht (RM1.9 billion) to finance future expansion.
The offering is part of a trend among retailers in recent years to squeeze more value from their real estate assets, bundling them into a property fund, selling the fund to investors and leasing back the property.
The Tesco Lotus Retail Growth Freehold and Leasehold Property Fund, as it is formally called, comprises 17 shopping malls anchored by a Tesco Lotus hypermarket in cities, including Bangkok and tourist destinations such as Krabi.
The fund "is well positioned to capitalise on the steady growth of the Thai economy, the strength of the retail sector and increasing wealth and consumption across the country," Tesco Lotus chief executive Chris Bush said in a statement.
The property fund, similar to a real estate investment trust, or REIT, will offer shares at a price range of 9.65 baht-10.40 baht (RM1.02-RM1.13) each, valuing the total deal at up to 18 billion baht, Tesco's Ek-Chai Distribution System Co unit said in a statement.
At that price, the fund would have a yield of 6.5 to 7 per cent per year. That yield would compare with 8.14 per cent for both the CPN Retail Growth Leasehold Property Fund, which owns three malls and an office tower, and movie theatre owner Major Cineplex Lifestyle Leasehold Property Fund, according to figures from the Asia Pacific Real Estate Association.
Tesco Lotus expects to add at least two more assets to the fund in the 2012/2013 fiscal year and one or two assets a year after that, according to the statement.
The IPO, Thailand's biggest since Rayong Refinery's US$710 million (RM2.15 billion) offering in May 2006, received US$40 million in commitments from US fund manager, the Capital Group Companies, two sources with direct knowledge of the deal said yesterday.
Bank of America Merrill Lynch, Nomura Holdings Inc, Phatra Securities and Royal Bank of Scotland were hired to manage the IPO.
Tesco lags only French group Carrefour and US industry leader Wal-Mart by annual sales, and has over 5,300 stores in 14 countries.
By Reuters
The offering is part of a trend among retailers in recent years to squeeze more value from their real estate assets, bundling them into a property fund, selling the fund to investors and leasing back the property.
The Tesco Lotus Retail Growth Freehold and Leasehold Property Fund, as it is formally called, comprises 17 shopping malls anchored by a Tesco Lotus hypermarket in cities, including Bangkok and tourist destinations such as Krabi.
The fund "is well positioned to capitalise on the steady growth of the Thai economy, the strength of the retail sector and increasing wealth and consumption across the country," Tesco Lotus chief executive Chris Bush said in a statement.
The property fund, similar to a real estate investment trust, or REIT, will offer shares at a price range of 9.65 baht-10.40 baht (RM1.02-RM1.13) each, valuing the total deal at up to 18 billion baht, Tesco's Ek-Chai Distribution System Co unit said in a statement.
At that price, the fund would have a yield of 6.5 to 7 per cent per year. That yield would compare with 8.14 per cent for both the CPN Retail Growth Leasehold Property Fund, which owns three malls and an office tower, and movie theatre owner Major Cineplex Lifestyle Leasehold Property Fund, according to figures from the Asia Pacific Real Estate Association.
Tesco Lotus expects to add at least two more assets to the fund in the 2012/2013 fiscal year and one or two assets a year after that, according to the statement.
The IPO, Thailand's biggest since Rayong Refinery's US$710 million (RM2.15 billion) offering in May 2006, received US$40 million in commitments from US fund manager, the Capital Group Companies, two sources with direct knowledge of the deal said yesterday.
Bank of America Merrill Lynch, Nomura Holdings Inc, Phatra Securities and Royal Bank of Scotland were hired to manage the IPO.
Tesco lags only French group Carrefour and US industry leader Wal-Mart by annual sales, and has over 5,300 stores in 14 countries.
By Reuters
Monday, February 20, 2012
Malaysia attractive for property ownership
KUALA LUMPUR: Low barriers and healthy prices makes Malaysia an attractive market for property ownership not only among locals but also foreigners, says iProperty Group Ltd chief executive officer Shaun Di Gregorio.
He said the main concern in the Malaysian property market today was that of rising prices.
"Other than price, buyers also expressed concern over home financing policies, interest rates, errant developers and finished quality," he said when revealing the findings of the iProperty.com Asia Property Market Sentiment Report 2012 here today.
A total of 3,459 respondents took part in the online survey conducted by Malaysia's number one property website.
Di Gregorio said in light of economic uncertainties in Europe and the United States, consumers could expect a slowdown in the high-end residential property sub-sector this year as potential buyers were likely to remain cautious.
"Despite this, properties in Malaysia were significantly cheaper in comparison with other markets in the region but were poised to appreciate over the next decade.
"The Malaysian survey participants were both upbeat about the property market and at the same time wary of a possible bubble, and with good reasons, given the state of the Malaysian economy going into 2012," he added.
By Bernama
He said the main concern in the Malaysian property market today was that of rising prices.
"Other than price, buyers also expressed concern over home financing policies, interest rates, errant developers and finished quality," he said when revealing the findings of the iProperty.com Asia Property Market Sentiment Report 2012 here today.
A total of 3,459 respondents took part in the online survey conducted by Malaysia's number one property website.
Di Gregorio said in light of economic uncertainties in Europe and the United States, consumers could expect a slowdown in the high-end residential property sub-sector this year as potential buyers were likely to remain cautious.
"Despite this, properties in Malaysia were significantly cheaper in comparison with other markets in the region but were poised to appreciate over the next decade.
"The Malaysian survey participants were both upbeat about the property market and at the same time wary of a possible bubble, and with good reasons, given the state of the Malaysian economy going into 2012," he added.
By Bernama
UK envoy: Property sale should be sealed by year-end
KUALA LUMPUR: The British High Commission property along Jalan Ampang is yet to be put on the market. However, a deal should be concluded by the end of the year, says the British High Commissioner.
Simon Featherstone said they are still on the lookout for a new office building to move in to.
"Naturally, we would need a contract with a new place before we can put our property (British High Commission) on the market," he said.
Savills, Rahim & Co is representing the high commission on the relocation and sale of the property.
"We are positive we will find a place this year. There are a few purpose-built properties which have recently come into the market," Featherstone said without elaborating.
The sale of the property and the high commission's relocation to a purpose-built facility would help with managing costs as well as security issues.
In 2011, it was estimated that the chancery, which measures some 1.22ha, could fetch as high as RM1,500 per sq ft or RM196 million.
The property includes office, residences, a swimming pool and tennis courts.
The current British High Commission sits on land given to the British government in return for it giving up the Carcosa mansion in 1987.
The British government had until then used Carcosa as its diplomatic residence.
Two parcels of land were given to the British government then. The first, the land which currently houses the chancery, while the second is now the residence of the British High Commissioner.
Featherstone was quick to point out that his residence off Jalan Tun Razak is not up for sale.
According to sources, the high commission's neighbours which include Boustead Properties, IOI Group, HSC Healthcare and Sri Mersing Hotels Sdn Bhd, have expressed interest in the property.
Sri Mersing owns the vacant land at the corner of Jalan Ampang and Jalan Tun Razak.
The land measures 1.22ha and it is understood that Sri Mersing is linked to Malaysia's richest man Robert Kuok.
Boustead Properties has a project named 183 Ampang located behind the high commission.
By Business Times
Simon Featherstone said they are still on the lookout for a new office building to move in to.
"Naturally, we would need a contract with a new place before we can put our property (British High Commission) on the market," he said.
Savills, Rahim & Co is representing the high commission on the relocation and sale of the property.
"We are positive we will find a place this year. There are a few purpose-built properties which have recently come into the market," Featherstone said without elaborating.
The sale of the property and the high commission's relocation to a purpose-built facility would help with managing costs as well as security issues.
In 2011, it was estimated that the chancery, which measures some 1.22ha, could fetch as high as RM1,500 per sq ft or RM196 million.
The property includes office, residences, a swimming pool and tennis courts.
The current British High Commission sits on land given to the British government in return for it giving up the Carcosa mansion in 1987.
The British government had until then used Carcosa as its diplomatic residence.
Two parcels of land were given to the British government then. The first, the land which currently houses the chancery, while the second is now the residence of the British High Commissioner.
Featherstone was quick to point out that his residence off Jalan Tun Razak is not up for sale.
According to sources, the high commission's neighbours which include Boustead Properties, IOI Group, HSC Healthcare and Sri Mersing Hotels Sdn Bhd, have expressed interest in the property.
Sri Mersing owns the vacant land at the corner of Jalan Ampang and Jalan Tun Razak.
The land measures 1.22ha and it is understood that Sri Mersing is linked to Malaysia's richest man Robert Kuok.
Boustead Properties has a project named 183 Ampang located behind the high commission.
By Business Times
Bent on tall buildings in Ipoh
Menteri Besar Datuk Seri Dr Zambry Abd Kadir is on a collision course with the Department of Civil Aviation (DCA).
He is adamant that buildings over 85.3m above sea level or 17-storeys high be allowed in the centre of Ipoh against the department’s restriction.
Giving his executive talk to Ipoh City Council personnel at Stadium Indera Mulia recently, Dr Zambry said he had instructed Datuk Bandar Datuk Roshidi Hashim to approve tall buildings.
“The time has come for Ipoh to have skyscrapers like Penang, Selangor and Johor,” he said.
Dr Zambry was reported to have urged DCA to review its regulation that does not allow tall buildings to be built in the city.
The DCA, on the other hand, said the restriction on high buildings in Ipoh is based on the requirements set by the International Civil Aviation Organisation (ICAO).
Transport Minister Datuk Seri Kong Cho Ha was reported to have said the requirements were imposed for safety reasons.
Dr Zambry said he failed to understand the logic used by DCA to stop the construction of tall buildings in Ipoh.
“I can understand if the ban is enforced around the airport area but for the department to give a blanket ban for the entire city just defies logic,” he added.
He said if the state followed the department’s ruling, there would be no skyscrapers in the city.
“We will have to be contended with the present height of buildings here,” he said.
Dr Zambry later announced a RM500 bonus for the city council personnel.
Later at a press conference, Roshidi confirmed that the council had received several applications to build tall buildings in the city.
“The council will do what it can to assist the developers,” he said.
On the bonus payment, Roshidi said it would benefit 2,500 of its personnel.
“It will cost us RM1.14mil and it will be payable in March,” he added.
By The Star
He is adamant that buildings over 85.3m above sea level or 17-storeys high be allowed in the centre of Ipoh against the department’s restriction.
Giving his executive talk to Ipoh City Council personnel at Stadium Indera Mulia recently, Dr Zambry said he had instructed Datuk Bandar Datuk Roshidi Hashim to approve tall buildings.
“The time has come for Ipoh to have skyscrapers like Penang, Selangor and Johor,” he said.
Dr Zambry was reported to have urged DCA to review its regulation that does not allow tall buildings to be built in the city.
The DCA, on the other hand, said the restriction on high buildings in Ipoh is based on the requirements set by the International Civil Aviation Organisation (ICAO).
Transport Minister Datuk Seri Kong Cho Ha was reported to have said the requirements were imposed for safety reasons.
Dr Zambry said he failed to understand the logic used by DCA to stop the construction of tall buildings in Ipoh.
“I can understand if the ban is enforced around the airport area but for the department to give a blanket ban for the entire city just defies logic,” he added.
He said if the state followed the department’s ruling, there would be no skyscrapers in the city.
“We will have to be contended with the present height of buildings here,” he said.
Dr Zambry later announced a RM500 bonus for the city council personnel.
Later at a press conference, Roshidi confirmed that the council had received several applications to build tall buildings in the city.
“The council will do what it can to assist the developers,” he said.
On the bonus payment, Roshidi said it would benefit 2,500 of its personnel.
“It will cost us RM1.14mil and it will be payable in March,” he added.
By The Star
Saturday, February 18, 2012
The merging labours of UEM-Sunrise
At the outset, the acquisition and merger of Sunrise Bhd into UEM Land Holdings Bhd early last year looked like a simple, straight forward corporate exercise that went without a hitch.
But behind the scene, many man hours have been expended to ensure a smooth integration and transition for the 1,000-strong staff in the enlarged property group.
Wan Abdullah: ‘We got to know each other’s DNA before proceeding to the various issues.’
UEM Land Holdings Bhd managing director and chief executive officer Datuk Wan Abdullah Wan Ibrahim concedes that the integration and transition phase is not without its challenges and there are a range of issues that needed to be looked into.
“When the acquisition of Sunrise was completed, we did not want to rush into things because both companies have got good offerings and their own unique selling propositions.
“The old UEM' is principally a township developer and a government-linked company, while Sunrise, led by Datuk Tong Kooi Ong, is a well known brand for its luxurious condominiums and high-rise integrated projects.
“We got to know each other's DNA before proceeding to address the various issues ranging from human resource matters to alignment of systems and procedures,” he relates to StarBizWeek.
With each side having about 500 staff, the enlarged UEM Land saw its staff number doubled to 1000.
The realignment and consolidation of its human resources involve the redeployment of staff, job scope and responsibilities, and a uniform reimbursement and reward system, among other things.
A new organisation structure emerged with the right candidates brought in to head the various departments, Wan Abdullah says.
He adds that the redeployment of staff in the two companies has resulted in better synergy and operational efficiency. A good example is the redesignation of Sunrise chief operating officer (COO) Lum Tuck Ming as the group COO of UEM Land.
With Lum on board as the UEM Land group COO, Wan Abdullah says it has freed up his time from having to handle the daily routine operational and project matters, to focus mainly on more important strategic decisions for the medium to long term growth of the company.
With regard to staff remuneration, he explains that Sunrise adopts the seven good years scheme where staff will be rewarded based on their performance over a seven-year period, while UEM Land uses the short-term and long-term reward system.
“We opted to retire the Sunrise scheme and paid off the staff, and replaced it with a new remuneration scheme that covers terms of employment, salary structure, and other benefits. The new scheme will be presented to the board for its approval later this month,” Wan Abdullah notes.
The system and work procedures also have been streamlined and unified to ensure uniformity.
Wan Abdullah says UEM Land is still undergoing a major shift in its work culture with the adoption of the Sunrise matrix system that requires staff to be seconded to projects from the start to their completion. Previously, UEM Land employs the central support department system.
“This major shift in our work culture will no doubt result in higher accountability and responsibility among our staff,” Wan Abdullah says.
There are also many synergistic benefits that can be tapped and one of the more obvious will be the enhanced skills and branding advantage that Sunrise brings with it.
With 35 years of involvement in high-rise developments and its success in building up Mont'Kiara into a renowned luxurious residential address, Sunrise's expertise seems to be the missing jigsaw puzzle to “complete” UEM Land as a more competitive player armed with a full set of skills in township and point block high-rise developments.
In particular, Wan Abdullah and his team are eager to tap the vast opportunities with the opening up of land for development by the Federal Government and state authorities.
Armed with its newly acquired skills, he says UEM Land is more confident to pursue these projects either through the direct acquisition of land or through joint ventures. Besides the Klang Valley, it is also looking out for opportunities in Penang and Kota Kinabalu, Sabah.
Regionally, UEM Land has set its sights on India, Vietnam and Cambodia.
Contrary to what has been predicted by some naysayers that there will be mass resignation of staff following the takeover of Sunrise, Wan Abdullah says there was no such occurrence.
“The key people at UEM Land and Sunrise are still with us today.
“There will be a lot of scope and opportunities for all our staff. In fact, the Sunrise team members are excited that they now have the opportunity to get involve in integrated township development. They used to have landbank of around 150 acres which are market-ready, but now they are part of a company with combined landbank of more than 9000 acres,” he says.
UEM Land still has 9000 acres undeveloped land in Nusajaya, Johor, and according to Wan Abdullah Nusajaya will be going into “tipping point” towards the end of this year.
“When that happens, the demand structure for our property products in Nusajaya will evolve like never before.
“This will coincide with the completion of the coastal highway in the first quarter this year; BioXcell and Marlborough College in the third quarter; Legoland, Indoor Theme Park and Traders Hotel in the fourth quarter,” he explains.
By The Star
But behind the scene, many man hours have been expended to ensure a smooth integration and transition for the 1,000-strong staff in the enlarged property group.
UEM Land Holdings Bhd managing director and chief executive officer Datuk Wan Abdullah Wan Ibrahim concedes that the integration and transition phase is not without its challenges and there are a range of issues that needed to be looked into.
“When the acquisition of Sunrise was completed, we did not want to rush into things because both companies have got good offerings and their own unique selling propositions.
“The old UEM' is principally a township developer and a government-linked company, while Sunrise, led by Datuk Tong Kooi Ong, is a well known brand for its luxurious condominiums and high-rise integrated projects.
“We got to know each other's DNA before proceeding to address the various issues ranging from human resource matters to alignment of systems and procedures,” he relates to StarBizWeek.
With each side having about 500 staff, the enlarged UEM Land saw its staff number doubled to 1000.
The realignment and consolidation of its human resources involve the redeployment of staff, job scope and responsibilities, and a uniform reimbursement and reward system, among other things.
A new organisation structure emerged with the right candidates brought in to head the various departments, Wan Abdullah says.
He adds that the redeployment of staff in the two companies has resulted in better synergy and operational efficiency. A good example is the redesignation of Sunrise chief operating officer (COO) Lum Tuck Ming as the group COO of UEM Land.
With Lum on board as the UEM Land group COO, Wan Abdullah says it has freed up his time from having to handle the daily routine operational and project matters, to focus mainly on more important strategic decisions for the medium to long term growth of the company.
With regard to staff remuneration, he explains that Sunrise adopts the seven good years scheme where staff will be rewarded based on their performance over a seven-year period, while UEM Land uses the short-term and long-term reward system.
“We opted to retire the Sunrise scheme and paid off the staff, and replaced it with a new remuneration scheme that covers terms of employment, salary structure, and other benefits. The new scheme will be presented to the board for its approval later this month,” Wan Abdullah notes.
The system and work procedures also have been streamlined and unified to ensure uniformity.
Wan Abdullah says UEM Land is still undergoing a major shift in its work culture with the adoption of the Sunrise matrix system that requires staff to be seconded to projects from the start to their completion. Previously, UEM Land employs the central support department system.
“This major shift in our work culture will no doubt result in higher accountability and responsibility among our staff,” Wan Abdullah says.
There are also many synergistic benefits that can be tapped and one of the more obvious will be the enhanced skills and branding advantage that Sunrise brings with it.
With 35 years of involvement in high-rise developments and its success in building up Mont'Kiara into a renowned luxurious residential address, Sunrise's expertise seems to be the missing jigsaw puzzle to “complete” UEM Land as a more competitive player armed with a full set of skills in township and point block high-rise developments.
In particular, Wan Abdullah and his team are eager to tap the vast opportunities with the opening up of land for development by the Federal Government and state authorities.
Armed with its newly acquired skills, he says UEM Land is more confident to pursue these projects either through the direct acquisition of land or through joint ventures. Besides the Klang Valley, it is also looking out for opportunities in Penang and Kota Kinabalu, Sabah.
Regionally, UEM Land has set its sights on India, Vietnam and Cambodia.
Contrary to what has been predicted by some naysayers that there will be mass resignation of staff following the takeover of Sunrise, Wan Abdullah says there was no such occurrence.
“The key people at UEM Land and Sunrise are still with us today.
“There will be a lot of scope and opportunities for all our staff. In fact, the Sunrise team members are excited that they now have the opportunity to get involve in integrated township development. They used to have landbank of around 150 acres which are market-ready, but now they are part of a company with combined landbank of more than 9000 acres,” he says.
UEM Land still has 9000 acres undeveloped land in Nusajaya, Johor, and according to Wan Abdullah Nusajaya will be going into “tipping point” towards the end of this year.
“When that happens, the demand structure for our property products in Nusajaya will evolve like never before.
“This will coincide with the completion of the coastal highway in the first quarter this year; BioXcell and Marlborough College in the third quarter; Legoland, Indoor Theme Park and Traders Hotel in the fourth quarter,” he explains.
By The Star
Perak developers unhappy with new premium rate system
RECENT media reports suggest that Ipoh is experiencing an upswing in property developments but developers are unhappy with the new premium rate system imposed.
According to San Chak Chun, honorary secretary of the Perak chapter of the Real Estate and Housing Developers' Association Malaysia (Rehda), there are some significant property projects in Perak, particularly Ipoh, but recent developments in the state administration have been of great concern to developers.
“The Perak government should be more sympathetic to the property development sector as it is the locomotive' for economic growth in the state,” pointed out San, 65, a lawyer by training. He is concurrently a committee member of the Perak Chinese Chamber of Commerce and Industry as well as the Associated Chinese Chambers of Commerce and Industry, Malaysia, involved in monitoring issues related to property and housing development and legal affairs.
“The property sector plays a vital role in more than 140 industries and trades in the economy,” explained San. “It is, in fact, the lifeline for people from all walks of life. Property development creates many job opportunities for locals as well as foreigners.
“But the cost of doing business for property developers has been on the rise since the state government changed its method of calculating the conversion premium from nett saleable area to gross area of a housing scheme which saw a 100% increase in the premium rate payable by the developer even for his own land. The capital contributions charged by the National Water Services Commission or SPAN (Suruhanjaya Perkhidmatan Air Negara) is another burden.”
Rate of premium payable by the developer is 10% of value of land per square meter for commercial property, and 1% of value of land for residential development. The capital contribution to SPAN has different charges. If the service reservoir is built by the developer, then the top bracket charge is RM1500 per unit for houses costing above RM500,000.
He also cited that the Department of Civil Aviation's imposition of a height limitation on the construction of high-rise buildings within a 5km radius of the Ipoh airport was another problem. Such buildings were restricted to a height that should not exceed 130m above sea level.
“This had practically stunted the Ipoh city centre and rendered the development potential of land within that radius comparatively restricted.”
On bureaucratic red tape, San stressed that the local authorities should reduce the approval time for all stages of development application.
“That means, from planning to implementation. Although, the one-stop centre concept has been implemented but the resultant effect still needs much improvement.”
Assessing the property industry in Perak, particularly the commercial segment, San revealed that there were several new budget hotels currently being constructed. But there was a lack of four-star and five-star establishments.
“There could be an oversupply of budget hotels as many entrepreneurs are turning their shophouse premises into such ventures.
“But Perak has no proper convention centre nor big enough exhibition venues to hold conferences or expos of international standards,” he highlighted.
“There is already an oversupply of shops and such commercial properties in various parts of Ipoh and towns in outlying areas.
Many such properties have also been converted to swiftlet farms,” said San, referring to the backyard industry of breeding swiftlets for their edible nest.
Residential property
For residential property developments, San said projects within Ipoh city and nearby towns were still selling well, with prices going up 20% to 40% for double-storey terraced houses.
“A standard two-storey linked house in Ipoh city is selling about RM390,000, whereas in other areas and in suburban localities, such a property can now fetch RM240,000 and upwards.
“For semi-detached houses, the current price is about RM800,000 for a unit with a built-up space of 3,500sq ft and a lot size of 45ft by 80ft.”
In the ranking order of “saleability,” the demand for residential property is for single-storey terraced and double-storey linked-houses followed by single-storey and double-storey, semi-detached houses plus medium-sized bungalows.
For reasons of accessibility and convenience, such properties should be within a radius of 10km from the city centre where most business activities are located.
However, San lamented that wasn't much interest in industrial property.
Many units of such developments were still vacant or turned into swiftlet farms. Comparatively, property prices in Ipoh were still quite affordable for working couples with two incomes. There was still a market for such developments.
By The Star
According to San Chak Chun, honorary secretary of the Perak chapter of the Real Estate and Housing Developers' Association Malaysia (Rehda), there are some significant property projects in Perak, particularly Ipoh, but recent developments in the state administration have been of great concern to developers.
“The Perak government should be more sympathetic to the property development sector as it is the locomotive' for economic growth in the state,” pointed out San, 65, a lawyer by training. He is concurrently a committee member of the Perak Chinese Chamber of Commerce and Industry as well as the Associated Chinese Chambers of Commerce and Industry, Malaysia, involved in monitoring issues related to property and housing development and legal affairs.
“The property sector plays a vital role in more than 140 industries and trades in the economy,” explained San. “It is, in fact, the lifeline for people from all walks of life. Property development creates many job opportunities for locals as well as foreigners.
“But the cost of doing business for property developers has been on the rise since the state government changed its method of calculating the conversion premium from nett saleable area to gross area of a housing scheme which saw a 100% increase in the premium rate payable by the developer even for his own land. The capital contributions charged by the National Water Services Commission or SPAN (Suruhanjaya Perkhidmatan Air Negara) is another burden.”
Rate of premium payable by the developer is 10% of value of land per square meter for commercial property, and 1% of value of land for residential development. The capital contribution to SPAN has different charges. If the service reservoir is built by the developer, then the top bracket charge is RM1500 per unit for houses costing above RM500,000.
He also cited that the Department of Civil Aviation's imposition of a height limitation on the construction of high-rise buildings within a 5km radius of the Ipoh airport was another problem. Such buildings were restricted to a height that should not exceed 130m above sea level.
“This had practically stunted the Ipoh city centre and rendered the development potential of land within that radius comparatively restricted.”
On bureaucratic red tape, San stressed that the local authorities should reduce the approval time for all stages of development application.
“That means, from planning to implementation. Although, the one-stop centre concept has been implemented but the resultant effect still needs much improvement.”
Assessing the property industry in Perak, particularly the commercial segment, San revealed that there were several new budget hotels currently being constructed. But there was a lack of four-star and five-star establishments.
“There could be an oversupply of budget hotels as many entrepreneurs are turning their shophouse premises into such ventures.
“But Perak has no proper convention centre nor big enough exhibition venues to hold conferences or expos of international standards,” he highlighted.
“There is already an oversupply of shops and such commercial properties in various parts of Ipoh and towns in outlying areas.
Many such properties have also been converted to swiftlet farms,” said San, referring to the backyard industry of breeding swiftlets for their edible nest.
Residential property
For residential property developments, San said projects within Ipoh city and nearby towns were still selling well, with prices going up 20% to 40% for double-storey terraced houses.
“A standard two-storey linked house in Ipoh city is selling about RM390,000, whereas in other areas and in suburban localities, such a property can now fetch RM240,000 and upwards.
“For semi-detached houses, the current price is about RM800,000 for a unit with a built-up space of 3,500sq ft and a lot size of 45ft by 80ft.”
In the ranking order of “saleability,” the demand for residential property is for single-storey terraced and double-storey linked-houses followed by single-storey and double-storey, semi-detached houses plus medium-sized bungalows.
For reasons of accessibility and convenience, such properties should be within a radius of 10km from the city centre where most business activities are located.
However, San lamented that wasn't much interest in industrial property.
Many units of such developments were still vacant or turned into swiftlet farms. Comparatively, property prices in Ipoh were still quite affordable for working couples with two incomes. There was still a market for such developments.
By The Star
SC declines ruling application by joint offerors of SP Setia
PETALING JAYA: The Securities Commission (SC) has declined a ruling application sought by the joint offerors of SP Setia Bhd, which they will not appeal.
However, the decision has no material impact on the joint offer made by Permodalan Nasional Bhd (PNB) and SP Setia founder Tan Sri Liew Kee Sin for the rest of the company’s shares.
“Notwithstanding the above, the terms and conditions of the revised offer remain unchanged as per the notice,” SP Setia said in an announcement to Bursa Malaysia.
Last month, PNB and Liew became joint bidders for the property giant, raising the offer price to RM3.95 per share and 96 sen per warrant, up from RM3.90 and 91 sen before.
SP Setia added that the offer document for the revised offer would be despatched within two days after it had obtained clearance from the SC.
The company had told the stock exchange on February 10 that it applied for a ruling with respect to the concert-party relationship of the joint offerors with one another and with various other persons that was submitted to the SC on January 25.
By The Star
However, the decision has no material impact on the joint offer made by Permodalan Nasional Bhd (PNB) and SP Setia founder Tan Sri Liew Kee Sin for the rest of the company’s shares.
“Notwithstanding the above, the terms and conditions of the revised offer remain unchanged as per the notice,” SP Setia said in an announcement to Bursa Malaysia.
Last month, PNB and Liew became joint bidders for the property giant, raising the offer price to RM3.95 per share and 96 sen per warrant, up from RM3.90 and 91 sen before.
SP Setia added that the offer document for the revised offer would be despatched within two days after it had obtained clearance from the SC.
The company had told the stock exchange on February 10 that it applied for a ruling with respect to the concert-party relationship of the joint offerors with one another and with various other persons that was submitted to the SC on January 25.
By The Star
Friday, February 17, 2012
Let’s turn JB into iconic waterfront city
It is the magic of the water that should draw you to a waterfront city. Besides that, it is the fun factor and the glitter attached to it that are all too hard to resist.
Venice, Amsterdam and Cape Town are cities that continue to be ever so popular and even Sydney's waterfront has icons like the Opera House, Harbour Bridge and Circular Quay that attracts millions of tourists every year.
A website lists seven interesting waterfront cities that include Spain's San Sebastian “whose promenade stretches from one edge of the arching coast to another littered with a number of parks, cafes, hotels, pavilions and boardwalks''.
Baltimore, Stockholm, Hamburg, Nice, and Porto in Portugal are some of the alluring waterfront cities that capture the travellers' heart.
Closer to home, Johor Baru is in for a rejuvenation into a waterfront city. Hopefully, whatever it is doing will put it on the ranks of the top 10 waterfront cities in time to come.
The idea of transforming JB, among others, was centred on capturing the spin-offs of businesses and traffic into Singapore, which now has a resort element that is attracting visitors by the droves.
Hence Iskandar Malaysia was created. But after five years, are we there yet?
Certainly not, but progress has been made, in some parts more and in others less. A larger part of the rejuvenation means JB needs investors some have come, some have come and left, but the net is still out there to get more as the whole development is just too huge to rely on two, five or even 10 investors.
Iskandar Malaysia has five zones. The city centre falls under Zone A, which includes Danga Bay. This covers the southernmost strip that stretches from the west to east and will be revived into a waterfront gold coast consisting of luxury hotels, condominiums, high-rise offices and tourist attractions. At night, it should stand out like a blanket of glitter overseeing Singapore. The gross development value of Zone A runs into RM80bil for now.
Zone B covers Nusajaya, where UEM Group has huge tracts of land being developed into superb residential areas, with houses there fetching minimum prices of RM400,000. Legoland, which is 60% complete, should open its doors by year end.
Zone C is the western gate of Johor, where a mammoth petrochemical and maritime hub is taking shape. Zone D covers the eastern gate, where Johor Port is located. It will be the learning zone where universities and colleges will be located.
Recently, Danga Bay got a shot in the arm with a RM200mil injection from the Federal Government to jumpstart the project, which will have a marina, cruise terminal, fisherman's wharf, shopping malls, hotels and residential buildings along the Straits of Johor. Perhaps the money is to match what businessman Datuk Lim Kang Hoo the man behind Danga Bay has pumped in over the past 15 years.
There are many more highways and infrastructure being laid out and JB at a glance appears to be bustling with activities. However, the main question is, can all these developments take off the way they were planned and can they generate enough economic activity for sustainability?
For one, Danga Bay is suddenly getting more queries and investor visits but can that be said of the other developments?
The Iskandar Malaysia project will create hundreds to thousands of jobs over the years and the economic spin-offs are really unimaginable for now. However, this is a long-term project and as Lim puts it, “maybe the full completion would not be in my lifetime”.
To make it all happen, everyone involved has to move at lightning speed so that JB can be an attraction for any travellers to Singapore, or else, we may just miss this window of opportunity.
Deputy news editor B.K. Sidhu thinks AirAsia's Tan Sri Tony Fernandes should consider taking over India's Kingfisher Airlines to expand into the Indian sub-continent now that AirAsia has a base in Asia and recently, the Middle East.
By The Star
Venice, Amsterdam and Cape Town are cities that continue to be ever so popular and even Sydney's waterfront has icons like the Opera House, Harbour Bridge and Circular Quay that attracts millions of tourists every year.
A website lists seven interesting waterfront cities that include Spain's San Sebastian “whose promenade stretches from one edge of the arching coast to another littered with a number of parks, cafes, hotels, pavilions and boardwalks''.
Baltimore, Stockholm, Hamburg, Nice, and Porto in Portugal are some of the alluring waterfront cities that capture the travellers' heart.
Closer to home, Johor Baru is in for a rejuvenation into a waterfront city. Hopefully, whatever it is doing will put it on the ranks of the top 10 waterfront cities in time to come.
The idea of transforming JB, among others, was centred on capturing the spin-offs of businesses and traffic into Singapore, which now has a resort element that is attracting visitors by the droves.
Hence Iskandar Malaysia was created. But after five years, are we there yet?
Certainly not, but progress has been made, in some parts more and in others less. A larger part of the rejuvenation means JB needs investors some have come, some have come and left, but the net is still out there to get more as the whole development is just too huge to rely on two, five or even 10 investors.
Iskandar Malaysia has five zones. The city centre falls under Zone A, which includes Danga Bay. This covers the southernmost strip that stretches from the west to east and will be revived into a waterfront gold coast consisting of luxury hotels, condominiums, high-rise offices and tourist attractions. At night, it should stand out like a blanket of glitter overseeing Singapore. The gross development value of Zone A runs into RM80bil for now.
Zone B covers Nusajaya, where UEM Group has huge tracts of land being developed into superb residential areas, with houses there fetching minimum prices of RM400,000. Legoland, which is 60% complete, should open its doors by year end.
Zone C is the western gate of Johor, where a mammoth petrochemical and maritime hub is taking shape. Zone D covers the eastern gate, where Johor Port is located. It will be the learning zone where universities and colleges will be located.
Recently, Danga Bay got a shot in the arm with a RM200mil injection from the Federal Government to jumpstart the project, which will have a marina, cruise terminal, fisherman's wharf, shopping malls, hotels and residential buildings along the Straits of Johor. Perhaps the money is to match what businessman Datuk Lim Kang Hoo the man behind Danga Bay has pumped in over the past 15 years.
There are many more highways and infrastructure being laid out and JB at a glance appears to be bustling with activities. However, the main question is, can all these developments take off the way they were planned and can they generate enough economic activity for sustainability?
For one, Danga Bay is suddenly getting more queries and investor visits but can that be said of the other developments?
The Iskandar Malaysia project will create hundreds to thousands of jobs over the years and the economic spin-offs are really unimaginable for now. However, this is a long-term project and as Lim puts it, “maybe the full completion would not be in my lifetime”.
To make it all happen, everyone involved has to move at lightning speed so that JB can be an attraction for any travellers to Singapore, or else, we may just miss this window of opportunity.
Deputy news editor B.K. Sidhu thinks AirAsia's Tan Sri Tony Fernandes should consider taking over India's Kingfisher Airlines to expand into the Indian sub-continent now that AirAsia has a base in Asia and recently, the Middle East.
By The Star
Exhibition hopes to attract overseas developers
The Malaysia Property Exposition (Mapex) 2012, to be held from March 2 to 4 at Halls 1, 2 and 3 of the Mid Valley Exhibition Centre in Mid Valley, will be opening its doors to top property developments from abroad.
Info: Ng (left) and KL Rehda chairman NK Tong showing the promotional material for Mapex 2012.
The event, themed “Home and Abroad”, is jointly organised by Rehda Malaysia with Rehda Kuala Lumpur and Selangor.
It will feature international property players with properties from overseas.
As of now, companies with projects in Thailand and the Philippines have registered their participation and Mapex is now awaiting confirmation from Australian participants as well.
Mapex 2012 committee chairman Datuk Ng Sieng Liong said the event would attract foreign investors to invest in Malaysia and with it promote tourism at the same time.
“Malaysians are the biggest investors in Singapore and nowadays, with just 10 to 12 hours of travelling, you can be in any part of the world.
“We also want foreign investors to come to Malaysia and invest,” said Ng, adding that more than 50,000 people were targeted to visit the exhibition.
Over 65 developers from the local and international arena have registered for Mapex, showcasing over 300 housing developments including Sime Darby Properties, SP Setia Bhd, Mah Sing Properties, Lebar Daun Development and Seri Pajam Development.
The developers will be showcasing various developments in Selangor, Kuala Lumpur, Johor, Malacca, Negri Sembilan, Pahang and Perak.
Major banks and financial institutions will also be offering attractive and competitive finance packages for buyers at Mapex including Bank Simpanan Nasional and Bank Mualamat.
There will also be talks on topics of interest to house buyers such as safety and financing during the three-day exhibition.
The exhibition is open from 10am to 9pm daily. Admission is free.
By The Star
The event, themed “Home and Abroad”, is jointly organised by Rehda Malaysia with Rehda Kuala Lumpur and Selangor.
It will feature international property players with properties from overseas.
As of now, companies with projects in Thailand and the Philippines have registered their participation and Mapex is now awaiting confirmation from Australian participants as well.
Mapex 2012 committee chairman Datuk Ng Sieng Liong said the event would attract foreign investors to invest in Malaysia and with it promote tourism at the same time.
“Malaysians are the biggest investors in Singapore and nowadays, with just 10 to 12 hours of travelling, you can be in any part of the world.
“We also want foreign investors to come to Malaysia and invest,” said Ng, adding that more than 50,000 people were targeted to visit the exhibition.
Over 65 developers from the local and international arena have registered for Mapex, showcasing over 300 housing developments including Sime Darby Properties, SP Setia Bhd, Mah Sing Properties, Lebar Daun Development and Seri Pajam Development.
The developers will be showcasing various developments in Selangor, Kuala Lumpur, Johor, Malacca, Negri Sembilan, Pahang and Perak.
Major banks and financial institutions will also be offering attractive and competitive finance packages for buyers at Mapex including Bank Simpanan Nasional and Bank Mualamat.
There will also be talks on topics of interest to house buyers such as safety and financing during the three-day exhibition.
The exhibition is open from 10am to 9pm daily. Admission is free.
By The Star
Avenue offers new way to invest in properties
AVENUE Properties Bhd has introduced a scheme for retail investors to buy interests in properties.
The company launched yesterday Avenue Hotel Property Interest Scheme, offering 10,500 property interests or units where 70 per cent are available for the public to buy at RM4,800 each.
Chief executive officer Richard Woo said the scheme will offer property interest or unit holders seven per cent returns per annum, for the first 14 years of its 35-year tenure.
The rate of return is higher in comparison to fixed deposits, the Employees Provident Fund and endowment policies, where the returns are two per cent to six per cent, but lower than investing in properties and bonds.
Unit holders will be investing in a 130-room four-storey boutique hotel on Jalan Raja Uda in Butterworth, Penang, and the returns will be paid annually.
Woo told reporters that the rate of return will be more than seven per cent after the 14th year onwards, as the market matures.
He said the property interest is not transferable and neither can it be disposed of by unit holders during the first 12 months from the date of take-up.
"We expect the property interests to be fully subscribed over the next three to three-and-half-years, generating some RM50 million for the company," Woo said.
The business hotel, which is being constructed for as much as RM30 million, will be completed by the first quarter of next year. It is part of a 24ha rehabilitation project being undertaken by Avenue Properties.
Other components of the project, which is estimated to have a gross development value of RM500 million to RM600 million, are condominiums, a mall, and shop offices.
Khong Yue Chen, Avenue Properties group director for marketing and communications, said it is expecting an average room occupancy rate of 60 per cent in the first year of operation, with average rate of RM280 per room a night.
She said the company will offer a collection of resorts and villas next for unit holders to invest in.
By Business Times
The company launched yesterday Avenue Hotel Property Interest Scheme, offering 10,500 property interests or units where 70 per cent are available for the public to buy at RM4,800 each.
Chief executive officer Richard Woo said the scheme will offer property interest or unit holders seven per cent returns per annum, for the first 14 years of its 35-year tenure.
The rate of return is higher in comparison to fixed deposits, the Employees Provident Fund and endowment policies, where the returns are two per cent to six per cent, but lower than investing in properties and bonds.
Unit holders will be investing in a 130-room four-storey boutique hotel on Jalan Raja Uda in Butterworth, Penang, and the returns will be paid annually.
Woo told reporters that the rate of return will be more than seven per cent after the 14th year onwards, as the market matures.
He said the property interest is not transferable and neither can it be disposed of by unit holders during the first 12 months from the date of take-up.
"We expect the property interests to be fully subscribed over the next three to three-and-half-years, generating some RM50 million for the company," Woo said.
The business hotel, which is being constructed for as much as RM30 million, will be completed by the first quarter of next year. It is part of a 24ha rehabilitation project being undertaken by Avenue Properties.
Other components of the project, which is estimated to have a gross development value of RM500 million to RM600 million, are condominiums, a mall, and shop offices.
Khong Yue Chen, Avenue Properties group director for marketing and communications, said it is expecting an average room occupancy rate of 60 per cent in the first year of operation, with average rate of RM280 per room a night.
She said the company will offer a collection of resorts and villas next for unit holders to invest in.
By Business Times
Thursday, February 16, 2012
Property prices spike in Shah Alam
PROPERTY prices in Shah Alam have climbed steadily over the last five years due to a combination of factors, including highway accessibility, said a real estate expert.
Azmi & Co director T Nagalingam said Shah Alam is experiencing spillover effects from the rise of property prices in areas like Subang Jaya, Glenmarie, Bukit Jelutong and Kota Kemuning.
He told Business Times that prices for double-storey terraced houses and condominiums have increased by 50 per cent and about 20-30 per cent respectively, in the last five to six years.
"Traditionally, Shah Alam was occupied by PKNS townships. Now, more players have emerged in Shah Alam such as Glomac Bhd, Naza and I-Berhad lifting up the area," he said.
Nagalingam said the New Klang Valley Expressway, Guthrie Corridor Expressway and the widening of roads have contributed to population growth and the price increases.
I-Berhad is developing i-City in Section 7, Shah Alam, sprawled over 30 hectares.
The 10-year development will feature some 12 million sq ft of gross lettable area for a total gross development value of RM4.5 billion.
Some 35 per cent of i-City will comprise residences. The rest will be offices, commercial and retail space, hotel, convention centre and a technology hub.
Since the project started about four years ago, some 500,000 sq ft, or 366 offices suites, and a 70,000 sq ft data centre have been completed.
To date, 20 per cent of the land area has been developed and it has been successful being an MSC Cybercity with complete information communications technology infrastructure.
The development is provided with dual source power supply, multi-telco environment and super broadband accessibility of 200mbps.
By Business Times
Azmi & Co director T Nagalingam said Shah Alam is experiencing spillover effects from the rise of property prices in areas like Subang Jaya, Glenmarie, Bukit Jelutong and Kota Kemuning.
He told Business Times that prices for double-storey terraced houses and condominiums have increased by 50 per cent and about 20-30 per cent respectively, in the last five to six years.
"Traditionally, Shah Alam was occupied by PKNS townships. Now, more players have emerged in Shah Alam such as Glomac Bhd, Naza and I-Berhad lifting up the area," he said.
Nagalingam said the New Klang Valley Expressway, Guthrie Corridor Expressway and the widening of roads have contributed to population growth and the price increases.
I-Berhad is developing i-City in Section 7, Shah Alam, sprawled over 30 hectares.
The 10-year development will feature some 12 million sq ft of gross lettable area for a total gross development value of RM4.5 billion.
Some 35 per cent of i-City will comprise residences. The rest will be offices, commercial and retail space, hotel, convention centre and a technology hub.
Since the project started about four years ago, some 500,000 sq ft, or 366 offices suites, and a 70,000 sq ft data centre have been completed.
To date, 20 per cent of the land area has been developed and it has been successful being an MSC Cybercity with complete information communications technology infrastructure.
The development is provided with dual source power supply, multi-telco environment and super broadband accessibility of 200mbps.
By Business Times
Asia-Pac firms keen on lMalaysian properties
PETALING JAYA: The bulk of the interest in Malaysian properties will be from the companies in the Asia-Pacific region, said Malaysia Property Inc (MPI) chief executive officer Kumar Tharmalingam.
“The interest will be mainly from China, Japan, South Korea, Indonesia and Singapore,” he said.
Kumar: ‘MPI will be an extension of three government agencies and a ministry.’
MPI, which comes under the Economic Planning Unit, was set up in 2008 as a public private initiative (PPI) with a government grant of RM25mil. Another RM25mil is expected to come from the private sector.
MPI aims to raise RM10mil from the private sector this year.
“In our objective to promote Malaysian real estate, MPI will somewhat be an extension of three government agencies and a ministry, but with the specialised role of taking care of all real estate matters.
These are national trade promotion agency Matrade, International Trade and Industry Ministry and Malaysian Investment Development Authority,” he told StarBiz in an e-mail interview.
“When a foreign investment is approved by the government, there will be a need for land or office space, or even accommodation for staff. Or it could be a joint venture with our local property boys. This is where we come in.”
He said MPI's role could be match-making investors with local real estate players for joint-venture partnerships, helping foreign investors to look for land or office space and to seek business-to-business opportunities in the real estate sector.
Wide though the spectrum may be, Kumar said MPI's role to promote Malaysian real estate was “doable”.
Kumar said: “We have two core objectives; to create international awareness and to establish connections between foreign interests and Malaysian real estate industry players. The ultimate goal will be to contribute to real estate investments here.”
He said so far, the Japanese, Chinese, South Korean and Indonesian investors had shown quite a bit of interest in the Government's Economic Transformation Programmes. “Much of the Greater KL initiative is driven by property investments and we have been putting interest foreign parties with local players. Our work right now is still very much work-in-progress.”
He expects the Mass Rapid Transit project to generate a lot of interest in Malaysian real estate as there will be an influx of foreigners into the country who will need office space and accommodate.
By The Star
“The interest will be mainly from China, Japan, South Korea, Indonesia and Singapore,” he said.
MPI, which comes under the Economic Planning Unit, was set up in 2008 as a public private initiative (PPI) with a government grant of RM25mil. Another RM25mil is expected to come from the private sector.
MPI aims to raise RM10mil from the private sector this year.
“In our objective to promote Malaysian real estate, MPI will somewhat be an extension of three government agencies and a ministry, but with the specialised role of taking care of all real estate matters.
These are national trade promotion agency Matrade, International Trade and Industry Ministry and Malaysian Investment Development Authority,” he told StarBiz in an e-mail interview.
“When a foreign investment is approved by the government, there will be a need for land or office space, or even accommodation for staff. Or it could be a joint venture with our local property boys. This is where we come in.”
He said MPI's role could be match-making investors with local real estate players for joint-venture partnerships, helping foreign investors to look for land or office space and to seek business-to-business opportunities in the real estate sector.
Wide though the spectrum may be, Kumar said MPI's role to promote Malaysian real estate was “doable”.
Kumar said: “We have two core objectives; to create international awareness and to establish connections between foreign interests and Malaysian real estate industry players. The ultimate goal will be to contribute to real estate investments here.”
He said so far, the Japanese, Chinese, South Korean and Indonesian investors had shown quite a bit of interest in the Government's Economic Transformation Programmes. “Much of the Greater KL initiative is driven by property investments and we have been putting interest foreign parties with local players. Our work right now is still very much work-in-progress.”
He expects the Mass Rapid Transit project to generate a lot of interest in Malaysian real estate as there will be an influx of foreigners into the country who will need office space and accommodate.
By The Star
Gefung may be injected with properties or plantations
PETALING JAYA: Gefung Holdings Bhd, a company that saw Datuk Allan Lim Kim Huat surface as its largest shareholder back in 2009, may see the injection of new assets in the form of properties or plantations, according to industry sources.
Although details are sketchy at the moment, the announcement for the asset injection is likely to happen within one month.
Gefung, which is involved in the processing of marble and granite products, is a loss-making entity.
In its most recent quarter, the company reported a net loss of RM5mil on revenue of RM6.7mil.
Lim had bought a 25.19% stake in Gefung in 2009 from former managing director and major shareholder Seo Aik Leong.
The businessman, who has extensive experience in industries like property development, manufacturing, trading, leisure, entertainment and food services, was consequently appointed managing director of the firm.
Industry observers say he is the brother-in-law of Dijaya Corp Bhd group chief executive Tan Sri Danny Tan Chee Sing and had worked alongside Sunrise Bhd's Tong Kooi Onn.
According to information on Gefung's website, the company which was listed in 2006 has operations in Malaysia, China and the Middle East.
While it is building its presence in the Middle East, Gefung said it was one of the top 10 marble and granite importers in China and one of the top 3 players in Shanghai where its plant is located.
Its decrease in earnings for its most recent quarter was mainly due to lower revenue generated from its Malaysia segment and delayed commencement of certain projects in China, it said.
At the close, Gefung shares finished flat at 16.5 sen after touching a one-month high of 19.5 sen on Feb 9.
By The Star
Although details are sketchy at the moment, the announcement for the asset injection is likely to happen within one month.
Gefung, which is involved in the processing of marble and granite products, is a loss-making entity.
In its most recent quarter, the company reported a net loss of RM5mil on revenue of RM6.7mil.
Lim had bought a 25.19% stake in Gefung in 2009 from former managing director and major shareholder Seo Aik Leong.
The businessman, who has extensive experience in industries like property development, manufacturing, trading, leisure, entertainment and food services, was consequently appointed managing director of the firm.
Industry observers say he is the brother-in-law of Dijaya Corp Bhd group chief executive Tan Sri Danny Tan Chee Sing and had worked alongside Sunrise Bhd's Tong Kooi Onn.
According to information on Gefung's website, the company which was listed in 2006 has operations in Malaysia, China and the Middle East.
While it is building its presence in the Middle East, Gefung said it was one of the top 10 marble and granite importers in China and one of the top 3 players in Shanghai where its plant is located.
Its decrease in earnings for its most recent quarter was mainly due to lower revenue generated from its Malaysia segment and delayed commencement of certain projects in China, it said.
At the close, Gefung shares finished flat at 16.5 sen after touching a one-month high of 19.5 sen on Feb 9.
By The Star
Wednesday, February 15, 2012
Johor property market may face oversupply in the longer term
Although an oversupply in the near term was unlikely, valuers and agents said it could materialise in a decade or later as the developments there would have a long gestation period.
“It is a cyclical industry. There could be an oversupply but this will not be for another 10 years,” Zerin Properties chief executive officer Previn Singhe told StarBiz.
Johor Baru-based V. Sivadas, executive director of PA International Property Consultants Sdn Bhd, pointed out that a glut was imminent if buying interest from Singapore, which has thus far led demand, dried up.
“Malaysia's existing population will not be able to absorb all the new properties on their own,” he said.
He noted that if the proposed high-speed rail between the two countries was fast-tracked, it could create an “instant demand” for Johor properties as the two existing highways linking Malaysia to the island state faced heavy congestion.
Another crucial factor, he added, was for the authorities to craft a long-term asset policy that would not dampen interest from foreigners, yet prevent the kind of artificial inflation of prices caused by speculative buying.
Last year, the Singapore government moved to cool its property market by imposing a 10% stamp duty on homes bought by foreigners, effectively raising the purchase price by 10%.
Foreigners, spurred by low interest rates, had snapped up about 9,300 private homes there in 2011, making it a record 31% of all transactions.
While a surfeit in residential properties may not be for some time, CB Richard Ellis (Johor) Sdn Bhd director Wee Soon Chit has some concerns about the service apartments sector.
He said there had been a sudden increase in the supply of service apartments in Johor, which might not be consistent with demand.
Sivadas also observed that service apartments were fetching between RM500 and RM600 psf now, their highest ever.
One thing is for sure the development of Iskandar has led to a marked appreciation in property prices in Malaysia's southernmost state.
UEM Land Holdings Bhd's Imperia@Puteri Harbour, the group's first residential development there, has sold 152 units, or 65%, since its soft launch last September. Singaporeans bought 90 of these units.
CIMB Research said in a report that the original selling price was RM545 psf, but this has risen to between RM700 and RM980 psf, which was a premium over the RM400-RM450 psf price for condominiums in neighbouring Kota Iskandar and Medini.
“One of the semi-detached houses in East Ledang (also by UEM Land) sold for RM1.6mil. This is a new benchmark,” Wee said.
Sivadas explained that all the new properties were priced above the RM400,000 level, and only the older homes could be bought for less than that.
“The prudent investors have mostly purchased completed apartments. It is the speculators who are going after the new launches,” he said.
However, he cautioned that Iskandar as a whole still had a long way to go.
“It will take another 50 years for it to be fully realised. Even though there are lots of plans and it looks good on paper, implementation remains the key.
“Various plans for Johor's development were unveiled years ago, but the Johor Baru skyline has not changed much. What has taken off is just a small percentage of what has been promised,” he said.
By The Star
Penang, Johor growth spurs Dijaya
PETALING JAYA: Dijaya Corp Bhd wants to build up its market presence in Johor and Penang, and expects to see a bigger contribution from the two growth markets.
Although the central region of Selangor is still the biggest contributor accounting for more than 70% of the company's sales and bottomline, Dijaya managing director Datuk Tong Kien Onn is looking at bigger contribution from the northern and southern regions.
Tong: 'We want to take advantage of the strong growth in Penang and Johor.'
“We want to build a stronger presence in these two markets to take advantage of the strong growth in Penang and Johor,” Tong told StarBiz.
Over the next two to three years when the projects started to move, he said contribution from Selangor was expected to drop to about 40%.
Dijaya plans to launch RM1.1bil worth of projects this year compared with about RM700mil last year. For 2012, it is targeting sales of between RM650mil and RM700mil. Last year, it sold about RM420mil worth of properties.
In Johor, Dijaya has two joint ventures with Iskandar Waterfront Sdn Bhd for projects in Danga Bay.
The first project, Tropicana Danga Bay on 37 acres is a 60:40 joint venture between Dijaya and its partner. The project under the joint venture company, Global Corporation Sdn Bhd is located only about five minutes to the Johor-Singapore Causeway. The land was purchased at a cost of RM318mil about 1 years ago.
Tropicana Danga Bay with expected gross development value (GDV) of RM3.8bil will comprise 60% commercial and 40% residential components. It will take eight to 10 years to complete. The first phase comprising a block of 420 service residences was launched last December at average prices of RM620 per sq ft. Tong said about 90% of the non-bumi lots have been sold to-date.
Dijaya also has a 50:50 joint venture with Iskandar Waterfront Sdn Bhd to undertake the 225 acre Tropicana Danga Cove. The land was bought for RM220mil in the last quarter of 2011.
The RM2.8bil development is expected to take 10 to 12 years. Construction of the project may kick off in March with the first phase comprising 3-storey shop offices.
In Penang, Dijaya has set up a 55:45 joint venture with Ivory Properties Group Bhd to buy and develop a 41.02ha site in Bayan Mutiara. The joint venture company, Tropicana Ivory Sdn Bhd paid RM1.07bil for the land and the repayment period will be over five years.
Tropicana Ivory will undertake a mixed residential and commercial property project with GDV of RM9.8bil over the next eight to 12 years.
Last Thursday, Dijaya received the nod from its shareholders to enter into the joint venture with Ivory Properties.
Tong said the master plan for the Penang project would be finalised in the next two to three months and the mixed integrated development is set to showcase some iconic structures.
Meanwhile, in Selangor, projects in the pipeline this year will comprise two new projects in Tropicana Indah Resort Homes namely Golf Villas and Tropicana Garden.
In Subang, Dijaya plans to build three-storey link, semi-detached and bungalow houses, condominiums as well as commercial development on its 35.4ha landbank.
Also in the pipeline will be bungalows, link houses and semi-detached units at Tropicana Cheras and Tropicana Balakong.
By The Star
Although the central region of Selangor is still the biggest contributor accounting for more than 70% of the company's sales and bottomline, Dijaya managing director Datuk Tong Kien Onn is looking at bigger contribution from the northern and southern regions.
“We want to build a stronger presence in these two markets to take advantage of the strong growth in Penang and Johor,” Tong told StarBiz.
Over the next two to three years when the projects started to move, he said contribution from Selangor was expected to drop to about 40%.
Dijaya plans to launch RM1.1bil worth of projects this year compared with about RM700mil last year. For 2012, it is targeting sales of between RM650mil and RM700mil. Last year, it sold about RM420mil worth of properties.
In Johor, Dijaya has two joint ventures with Iskandar Waterfront Sdn Bhd for projects in Danga Bay.
The first project, Tropicana Danga Bay on 37 acres is a 60:40 joint venture between Dijaya and its partner. The project under the joint venture company, Global Corporation Sdn Bhd is located only about five minutes to the Johor-Singapore Causeway. The land was purchased at a cost of RM318mil about 1 years ago.
Tropicana Danga Bay with expected gross development value (GDV) of RM3.8bil will comprise 60% commercial and 40% residential components. It will take eight to 10 years to complete. The first phase comprising a block of 420 service residences was launched last December at average prices of RM620 per sq ft. Tong said about 90% of the non-bumi lots have been sold to-date.
Dijaya also has a 50:50 joint venture with Iskandar Waterfront Sdn Bhd to undertake the 225 acre Tropicana Danga Cove. The land was bought for RM220mil in the last quarter of 2011.
The RM2.8bil development is expected to take 10 to 12 years. Construction of the project may kick off in March with the first phase comprising 3-storey shop offices.
In Penang, Dijaya has set up a 55:45 joint venture with Ivory Properties Group Bhd to buy and develop a 41.02ha site in Bayan Mutiara. The joint venture company, Tropicana Ivory Sdn Bhd paid RM1.07bil for the land and the repayment period will be over five years.
Tropicana Ivory will undertake a mixed residential and commercial property project with GDV of RM9.8bil over the next eight to 12 years.
Last Thursday, Dijaya received the nod from its shareholders to enter into the joint venture with Ivory Properties.
Tong said the master plan for the Penang project would be finalised in the next two to three months and the mixed integrated development is set to showcase some iconic structures.
Meanwhile, in Selangor, projects in the pipeline this year will comprise two new projects in Tropicana Indah Resort Homes namely Golf Villas and Tropicana Garden.
In Subang, Dijaya plans to build three-storey link, semi-detached and bungalow houses, condominiums as well as commercial development on its 35.4ha landbank.
Also in the pipeline will be bungalows, link houses and semi-detached units at Tropicana Cheras and Tropicana Balakong.
By The Star
Mah Sing opens rep office in Shanghai
The office will serve as a business liaison between Mah Sing, local regulators and local companies in China to explore the property development industry in China.
It will conduct market and product research, marketing, brand promotion and coordination of the group's activities in China.
"In terms of accessibility, climate, culture, livability, and political stability, Malaysia is an attractive avenue for Chinese property investors," said group managing director and group CEO Tan Sri Sri Leong Hoy Kum in a statement.
Leong said the opening of Mah Sing's Shanghai representative office is another milestone for the group to firmly establish Mah Sing as Malaysia's premier lifestyle property developer of choice for Chinese investors.
Some of the projects with potential sales among Chinese investors are resort-style living Icon Residence Mont' Kiara, residential suit and boutique shops MCity Jalan Ampang and mixed commercial development Icon City Petaling Jaya.
By Business Times
UEM Land set to explore new growth markets
KUALA LUMPUR: Fresh from the consolidation of its operation after the purchase of Sunrise Bhd, the enlarged UEM Land Holdings Bhd now has a complete set of skills and expertise to scour for opportunities in new growth markets, both locally and overseas.
UEM Land managing director and chief executive officer Datuk Wan Abdullah Wan Ibrahim said the acquisition of Sunrise last year had resulted in a “full set of skills” for the property group to move to its next level of growth “by leaps and bounds.”
“This is a match made in heaven and the coming together of the expertise of both UEM Land as a township developer and Sunrise's acclaimed reputation in high-rise integrated developments has opened up vast opportunities for us to tap going forward,” Wan Abdullah told StarBiz.
Although it still has much in its plate as far as landbank and projects in Malaysia are concerned, UEM Land has set its sight to venture to other regional markets such as India, Vietnam and Myanmar,
“We are talking to a number of potential partners and will be sending our teams to India and Vietnam to explore the opportunities there,” Wan Abdullah said.
He said as Myanmar was opening up its door to foreign investments, the company was studying how it could partake in the development process of that country.
Locally, Wan Abdullah is confident that having Sunrise under its belt augurs well for UEM Land to bid for landbank and redevelopment projects from the Federal Government and various state authorities.
“Two years ago when we approached these authorities for development opportunities, they have their reservation about what we can offer as a township developer. Today, given Sunrise's expertise in high-rise integrated developments and strong branding, UEM Land is enjoying a stronger profile, skill set and competitive advantage,” he added.
Wan Abdullah said many government agencies owned landbank that were very strategic and would be opening them up for development. “We are knocking on their doors to pursue possibilities of UEM Land acquiring these land or form joint ventures with them.”
In a research note, Maybank Kim Eng said UEM Land was likely to win more government land deals, such as the Rubber Research Institute of Malaysia land in Sungai Buloh and the former Pudu jail development project in Jalan Hang Tuah.
UEM Land is the property arm of UEM Group, which in turn, is wholly owned by Khazanah Nasional Bhd.
The company became the biggest property counter on Bursa Malaysia by market capitalisation after buying over Sunrise. It now has a market capitalisation of close to RM10bil based on 4.324 billion shares issued and closing share price of RM2.31 yesterday.
Wan Abdullah said UEM Land aimed to chalk up another record year of sales of RM3bil this year from RM2.2bil recorded last year.
The company has projects worth RM34bil to be launched over the next couple of years.
It is currently developing Nusajaya, one of the five flagship zones of Iskandar Malaysia in Johor, and also has projects in Bangi, Cyberjaya, Kajang and Mont' Kiara.
Another exciting project to look out for will be the RM1.3bil Angkasa Raya project, which is Sunrise's new landmark project in the Kuala Lumpur city centre. .
For the year ended Dec 31, 2010, UEM Land posted a net profit of RM194.5mil on revenue of RM469.7mil.
Analysts expect the enlarged company to turn in a strong double-digit growth in its financial results in FY2011, mainly due to the consolidation of Sunrise's earnings.
The company will be releasing its final-quarter results for FY2011 on Feb 28.
By The Star
E&O unveils Andaman sea-facing condos
Malaysia-listed premier lifestyle property developer Eastern & Oriental Bhd (E&O) has announced the official launch of Andaman at Quayside, luxurious Andaman Sea-facing condominiums touted to be the finest on Penang Island.
Andaman at Quayside is sited on 8.5 ha. of the final, most-prime plot on E&O’s acclaimed world-class masterplanned development, Seri Tanjung Pinang, with 75 per cent of all suites providing unobstructed views of the sea and the famous Gurney Drive.
Featuring a 1.8 ha. signature waterpark and clubhouse surrounded by an additional 2.8 ha. of tropical gardens along with a world-class retail enclave, Andaman at Quayside offers lifestyle and entertainment experiences by-the-sea.
Eric Chan, Deputy Managing Director of E&O, said, "We conceptualised Andaman at Quayside to celebrate the best facets of island living in Penang.
"The Andaman at Quayside sits within Penang Island’s largest seafront development and most sought-after residential address," he said in a statement here today.
Apart from competitive pricing, the project's interest-absorption scheme offers another incentive for investors seeking to get a slice of vibrant Penang’s property pie with just a 10 per cent initial down payment, while the availability of up to 90 per cent financing (subject to eligibility) makes it even more attractive. For more information, check out www.quaysideresort.com
By Bernama
Andaman at Quayside is sited on 8.5 ha. of the final, most-prime plot on E&O’s acclaimed world-class masterplanned development, Seri Tanjung Pinang, with 75 per cent of all suites providing unobstructed views of the sea and the famous Gurney Drive.
Featuring a 1.8 ha. signature waterpark and clubhouse surrounded by an additional 2.8 ha. of tropical gardens along with a world-class retail enclave, Andaman at Quayside offers lifestyle and entertainment experiences by-the-sea.
Eric Chan, Deputy Managing Director of E&O, said, "We conceptualised Andaman at Quayside to celebrate the best facets of island living in Penang.
"The Andaman at Quayside sits within Penang Island’s largest seafront development and most sought-after residential address," he said in a statement here today.
Apart from competitive pricing, the project's interest-absorption scheme offers another incentive for investors seeking to get a slice of vibrant Penang’s property pie with just a 10 per cent initial down payment, while the availability of up to 90 per cent financing (subject to eligibility) makes it even more attractive. For more information, check out www.quaysideresort.com
By Bernama
DPMM to build houses again
MALAY Chamber of Commerce Malaysia (DPMM) will again embark on a role as property developer, offering medium- and low-cost terrace houses and apartments at cost price.
Its president Syed Ali Alattas said the properties will be priced less than RM200,000 a unit.
"We were involved as developer in 1975 when our subsidiary Syarikat (Perumahan) Sdn Bhd built 1,340 low medium cost houses in Johor Baru. We sold those houses at cost price, which was not more than RM34,000 a unit then," he told reporters at the DPMM headquarters, yesterday.
Syed Ali said that the chamber intends to collaborate with the various state governments for the housing projects and believes this time around it will also be able to sell the units at almost cost price.
"We will be writing letters to all the Mentris Besar soon to ask them to allocate us land for this purpose," he said.
He said the chamber plans to build 100,000 houses throughout Malaysia including Sabah and Sarawak of which 30 per cent can be acquired by non-Bumiputeras.
He said a website will soon be up, providing more information on the type of properties the chambers would be selling.
DPMM will build the properties under a new subsidiary called Dewan Syarikah Bhd and will start with a project in Johor.
"We are looking at building 220 apartment units in Bandar Uda Utama and believe we can complete the project within eight months," he said.
Syed Ali added that it will carry out a design contest for both the terrace houses and apartments which offers a cash prize of RM15,000 for the winner of the low cost apartment category and RM10,000 for the double-storey terrace house category.
He said the chamber will not be seeking the participation of non-members in the project as its members include 16,000 contractors, 2,000 engineers and 10,000 consultants.
"We've had enough of listening to grouses about sky rocketing house prices ... that is why we are embarking on this project," he added.
By Business Times
"We were involved as developer in 1975 when our subsidiary Syarikat (Perumahan) Sdn Bhd built 1,340 low medium cost houses in Johor Baru. We sold those houses at cost price, which was not more than RM34,000 a unit then," he told reporters at the DPMM headquarters, yesterday.
Syed Ali said that the chamber intends to collaborate with the various state governments for the housing projects and believes this time around it will also be able to sell the units at almost cost price.
"We will be writing letters to all the Mentris Besar soon to ask them to allocate us land for this purpose," he said.
He said the chamber plans to build 100,000 houses throughout Malaysia including Sabah and Sarawak of which 30 per cent can be acquired by non-Bumiputeras.
He said a website will soon be up, providing more information on the type of properties the chambers would be selling.
DPMM will build the properties under a new subsidiary called Dewan Syarikah Bhd and will start with a project in Johor.
"We are looking at building 220 apartment units in Bandar Uda Utama and believe we can complete the project within eight months," he said.
Syed Ali added that it will carry out a design contest for both the terrace houses and apartments which offers a cash prize of RM15,000 for the winner of the low cost apartment category and RM10,000 for the double-storey terrace house category.
He said the chamber will not be seeking the participation of non-members in the project as its members include 16,000 contractors, 2,000 engineers and 10,000 consultants.
"We've had enough of listening to grouses about sky rocketing house prices ... that is why we are embarking on this project," he added.
By Business Times
Naim Indah most active
TIMBER and property-related Naim Indah Corp Bhd was the most active counter on Bursa Malaysia yesterday with some 315 million shares changing hands.
The stock opened at 56 sen but nosedived to 37.5 sen at the end of the morning session.
The stock bounced back after trading resumed in the afternoon but still closed 14 per cent lower to 48 sen.
Naim Indah's shares have been on the uptrend since February 2 this year and continued to rise after Sagajuta Group's Datuk Raymond Chan Boon Siew emerged as a new major shareholder last week.
Chan bought a 12.11 per cent stake in Naim Indah from the company's largest shareholder Crest Energy Sdn Bhd, which also sold the remainder of its 22.80 per cent stake to a number of other individuals.
He was reportedly said to be planning to inject property developer Sagajuta Sabah Sdn Bhd into Naim Indah.
Last Thursday, Naim Indah closed at 67 sen from just 9 sen a week before. Overall, the stock had risen some 1,240 per cent within a six-month period until last Thursday.
The sharp rise has prompted Bursa Malaysia to caution investors in the trading of Naim Indah stocks. The move raised concerns that the regulator could move to designate the stock and selling pressure has since intensified.
By Business Times
The stock opened at 56 sen but nosedived to 37.5 sen at the end of the morning session.
The stock bounced back after trading resumed in the afternoon but still closed 14 per cent lower to 48 sen.
Naim Indah's shares have been on the uptrend since February 2 this year and continued to rise after Sagajuta Group's Datuk Raymond Chan Boon Siew emerged as a new major shareholder last week.
Chan bought a 12.11 per cent stake in Naim Indah from the company's largest shareholder Crest Energy Sdn Bhd, which also sold the remainder of its 22.80 per cent stake to a number of other individuals.
He was reportedly said to be planning to inject property developer Sagajuta Sabah Sdn Bhd into Naim Indah.
Last Thursday, Naim Indah closed at 67 sen from just 9 sen a week before. Overall, the stock had risen some 1,240 per cent within a six-month period until last Thursday.
The sharp rise has prompted Bursa Malaysia to caution investors in the trading of Naim Indah stocks. The move raised concerns that the regulator could move to designate the stock and selling pressure has since intensified.
By Business Times
KYM, Perak in land reclaimation pact
PECOH Industrial Development Sdn Bhd (PIDSB) today entered into a Joint Development Agreement (JDA) with the Perak State Development Corporation (PKNP) to reclaim 1,360 hectares of land in Bagan Datoh.
In announcing this, KYM Holdings Bhd said the project is part of the Perak Eco Industrial Hub (PECOH).
Bagan Dato has been identified as an area to initiate projects in PECOH due to its strategic location, and the Perak state government is setting up a heavy industrial zone in its efforts to promote industrial development in the state.
PECOH is a subsidiary of PEIH Holdings Sdn Bhd, which in turn is an associated company of KYM.
By Bernama
In announcing this, KYM Holdings Bhd said the project is part of the Perak Eco Industrial Hub (PECOH).
Bagan Dato has been identified as an area to initiate projects in PECOH due to its strategic location, and the Perak state government is setting up a heavy industrial zone in its efforts to promote industrial development in the state.
PECOH is a subsidiary of PEIH Holdings Sdn Bhd, which in turn is an associated company of KYM.
By Bernama
Amanahraya REIT pre-tax profit at RM73.6m
Amanahraya Real Estate Investment Trust's (Amanahraya REIT) pre-tax profit for the financial year ended Dec 31, 2011, rose
to RM73.672 million from RM41.401 million in the same period in 2010. Revenue soared to RM65.306 million from RM59.510 million.
The higher pre-tax profit was due to unrealised gains from revaluation of its properties, it said in a filing to Bursa Malaysia.
On prospects, Amanahraya REIT said it was actively identifying good assets for new acquisitions to improve the yield and further diversify the portfolio to minimise the sectoral risk.
"The strategy of having assets with long-term leases by reputable lessees will continue to be Amanahraya REIT's focus to ensure sustainable returns," it added.
By Bernama
to RM73.672 million from RM41.401 million in the same period in 2010. Revenue soared to RM65.306 million from RM59.510 million.
The higher pre-tax profit was due to unrealised gains from revaluation of its properties, it said in a filing to Bursa Malaysia.
On prospects, Amanahraya REIT said it was actively identifying good assets for new acquisitions to improve the yield and further diversify the portfolio to minimise the sectoral risk.
"The strategy of having assets with long-term leases by reputable lessees will continue to be Amanahraya REIT's focus to ensure sustainable returns," it added.
By Bernama
Tuesday, February 14, 2012
i-City development, phase two
According to I-Berhad marketing director Monica Ong, the firm will introduce its first residential project at i-City, dubbed i-Residence.
It will comprise 346 serviced apartment units in a 33-storey block and duplex villas worth a combined RM250 million.
I-Berhad will also roll out the construction of a one million sq ft mall with four towers sited above it. The towers will boast of cyber office suites, corporate towers, small office/home office, serviced apartment and retail, and small office/versatile office-cum-hotel.
The first projects due for launch on March 23 are the serviced apartments and the villas.
"We reckon that sales are going to be positive looking at the registrations," Ong told Business Times.
The serviced apartments are priced from RM465 per sq ft or between RM365,000 and RM699,000 each, for built-up of 700 sq ft and 1,300 sq ft.
The 20 units of villas, which come in 10 five-storey blocks, will be priced above RM1 million with the units ranging from 2,800 sq ft and 3,800 sq ft.
All the units will be fitted with air conditioners, water heating systems and kitchen appliances.
Being part of the MSC Cybercity, the residences will also get to enjoy dual source power supply, a multi-telco environment and super broadband accessibility, Ong said.
"i-Residence is a product you can compare to Mont Kiara in terms of the design and finishing. You can't find such a product in the immediate vicinity. We have buyers looking to buy for their personal investment, rental income or own use.
"The properties are also attractive in prices. They are not as high as Subang Jaya, where properties are transacting at above RM600 per sq ft. So there is high value appreciation here," Ong claimed.
By Business Times
Prokhas plans marketing blitz for Menara 238
PETALING JAYA: After having been vacant for more than a decade since its completion in 1999, Marinara, now known as Menara 238 Kuala Lumpur, will kick off its advertising and marketing blitz starting next month amid a challenging office space rental market.
Prokhas Sdn Bhd would begin a series of media advertising campaigns to promote the building, said a source. Prokhas is a private limited company wholly-owned by Minister of Finance Inc.
There may be a possibility that telecommunications company Celcom may rent three floors in the building and negotiations are underway. Menara Celcom is located next door and Celcom and Perkeso staff have been using Menara 238's 880 parking bays for about six months now.
Menara Celcom is next to Menara 238 while Menara Perkeso is diagonally across the road junction.
On the first floor, a management office has been set up with a sign which read “Menara 238 is now under the proprietorship of Danaharta Sdn Bhd, and currently managed by Prokhas Sdn Bhd.”
Workers and security guards said the management office was set up around the middle of last year.
Buntings have been placed on the ground floor, advertising that 500,000 sq ft of office space are up for rent despite the ongoing legal tussle between politician Marina Yusof and national asset management Danaharta Hartanah Sdn Bhd, with both parties claiming ownership of the building.
In October, Marina took out an advertisement to sell or rent the building located at the junction of Jalan Tun Razak and Jalan Raja Muda Abdul Aziz.
Prokhas, in a email, said since Feb 2011, the registered name was Menara 238. Sources said “the owner of the building is Danaharta Hartanah Sdn Bhd, a subsidiary of Pengurusan Danaharta and Prokhas is the building manager. We have put the building on lease and when it is more than 50% tenanted, it will be easier to sell because the buyers will want a tenanted building.”
Marina Yusof also claimed ownership in an email to StarBiz.
It was reported that in 1980, Marina spent RM10mil to purchase a piece of land to construct the tower. It originally cost RM300mil to build and foundation works started in 1995. It was completed four years later. But the Asian financial crisis of 1997/98 netted many victims and the building was transferred to national asset management company Danaharta, which was established after the 1997-98 financial crisis.
Several years ago, the property, which sits on 2.06 acres (0.82 ha) was renovated and its 60 apartments and penthouses from 27th floor up to the 37th floor were converted into office space.
It is centrally located about 1km between Petronas Twin Towers and Kampung Baru. Menara 238 has a gross floor area of 960,000 sq ft and a net lettable area of 460,000sq ft.
By The Star
Brunsfield joins IWH to develop Johor project
PETALING JAYA: The Brunsfield Group is the latest property developer to have inked a deal with Iskandar Waterfront Holdings Bhd (IWH) to develop a parcel of land close to the waterfront area in Johor Baru, industry sources said.
The source added that the development to be undertaken by Brunsfield and IWH would have a gross development value of around RM3bil.
“There are other major developers also firming up joint ventures with IWH. The growing interest in IWH is phenomenal,” said the source.
Brunsfield is known for a number of high-end development projects including building 20 exclusively designed bungalows in Damansara with price tags of RM3,000 per sq ft or more than RM30mil a unit and the 93 exclusive low-rise luxurious condo villas named Brunsfield Residence @ U Thant. It is also well-known for its joint ventures with Sime Darby Bhd, involving projects such as the RM250mil Subang Avenue, the RM550mil Oasis Damansara and the redevelopment of Oyster Cove, one of the most exclusive waterfront resorts on Australia's Gold Coast.
In an interview with StarBiz last week businessman Datuk Lim Kang Hoo, major shareholder and who helms IWH, said that IWH would be the master developer of the area and it aimed to attract established world class developers to undertake different parcels. These parties are also expected to part fund the entire development, bringing in the much needed foreign direct investment.
He declined to comment on the Brunsfield deal when contacted yesterday.
But Lim had said the project had received enquiries almost on a daily basis from both local and foreign developers.
So far, IWH has attracted local investor Dijaya CorpBhd, which is investing RM3.8bil in a high-end mixed development project over 15ha.
Singapore's Azea Residences will work on four blocks of high-end apartments at a cost of over RM500mil. Australia's Walker Group has also partnered with IWH to develop Senibong Cove into a high-end residential development modelled after the Hope Island project in Australia's Gold Coast.
Stretching 25km to the east and west of the Johor Causeway, the newly-launched Iskandar Integrated Waterfront City (IIWC) project in Danga Bay is the result of an integrated master plan that would see the complete makeover of Johor Baru and seafront sites facing Singapore.
The development, to be launched in phases over 25 years with a gross development value of RM80bil, would be a public-private partnership involving the Government and IWH.
IWH is a special purpose vehicle created to become the master developer and planner of a 1,200ha site within Flagship “A” (in Johor Baru city centre) of Iskandar Malaysia. IWH shareholders are Kumpulan Prasarana Rakyat Johor and Credence Resources Sdn Bhd, whose majority shareholder is Lim. Khazanah Nasional Bhd and the Employees Provident Fund, via their holdings in Iskandar Investment Bhd, are also shareholders of subsidiaries and associate companies of IWH.
By The Star
The source added that the development to be undertaken by Brunsfield and IWH would have a gross development value of around RM3bil.
“There are other major developers also firming up joint ventures with IWH. The growing interest in IWH is phenomenal,” said the source.
Brunsfield is known for a number of high-end development projects including building 20 exclusively designed bungalows in Damansara with price tags of RM3,000 per sq ft or more than RM30mil a unit and the 93 exclusive low-rise luxurious condo villas named Brunsfield Residence @ U Thant. It is also well-known for its joint ventures with Sime Darby Bhd, involving projects such as the RM250mil Subang Avenue, the RM550mil Oasis Damansara and the redevelopment of Oyster Cove, one of the most exclusive waterfront resorts on Australia's Gold Coast.
In an interview with StarBiz last week businessman Datuk Lim Kang Hoo, major shareholder and who helms IWH, said that IWH would be the master developer of the area and it aimed to attract established world class developers to undertake different parcels. These parties are also expected to part fund the entire development, bringing in the much needed foreign direct investment.
He declined to comment on the Brunsfield deal when contacted yesterday.
But Lim had said the project had received enquiries almost on a daily basis from both local and foreign developers.
So far, IWH has attracted local investor Dijaya CorpBhd, which is investing RM3.8bil in a high-end mixed development project over 15ha.
Singapore's Azea Residences will work on four blocks of high-end apartments at a cost of over RM500mil. Australia's Walker Group has also partnered with IWH to develop Senibong Cove into a high-end residential development modelled after the Hope Island project in Australia's Gold Coast.
Stretching 25km to the east and west of the Johor Causeway, the newly-launched Iskandar Integrated Waterfront City (IIWC) project in Danga Bay is the result of an integrated master plan that would see the complete makeover of Johor Baru and seafront sites facing Singapore.
The development, to be launched in phases over 25 years with a gross development value of RM80bil, would be a public-private partnership involving the Government and IWH.
IWH is a special purpose vehicle created to become the master developer and planner of a 1,200ha site within Flagship “A” (in Johor Baru city centre) of Iskandar Malaysia. IWH shareholders are Kumpulan Prasarana Rakyat Johor and Credence Resources Sdn Bhd, whose majority shareholder is Lim. Khazanah Nasional Bhd and the Employees Provident Fund, via their holdings in Iskandar Investment Bhd, are also shareholders of subsidiaries and associate companies of IWH.
By The Star
Hektar REIT net income up 121pc
KUALA LUMPUR: Hektar Asset Management Sdn Bhd says its Hektar Real Estate Investment Trust (Hektar REIT) net income increased by 121 per cent to RM86.7 million, or 27.08 sen per unit, last year.
The gain was attributed to the revaluation of its investment properties, it said yesterday.
Revenue was up by 4.4 per cent to RM94.9 million. As of December 31, 2011, Hektar REIT's net asset value was RM1.48 per unit.
Hektar REIT's portfolio includes Subang Parade in Subang Jaya, Mahkota Parade in Malacca and Wetex Parade in Muar.
Last year, the portfolio had an average occupancy of 97.5 per cent.
By Business Times
The gain was attributed to the revaluation of its investment properties, it said yesterday.
Revenue was up by 4.4 per cent to RM94.9 million. As of December 31, 2011, Hektar REIT's net asset value was RM1.48 per unit.
Hektar REIT's portfolio includes Subang Parade in Subang Jaya, Mahkota Parade in Malacca and Wetex Parade in Muar.
Last year, the portfolio had an average occupancy of 97.5 per cent.
By Business Times
Hektar REIT profit jumps to RM58mil
KUALA LUMPUR: Hektar Real Estate Investment Trust’s (Hektar REIT) net profit jumped to RM57.7mil for the fourth quarter ended Dec 31, 2011 from RM11.3mil a year earlier.
Its revenue rose to RM24.2mil against RM24mil previously.
Hektar REIT’s net profit increased to RM86.6mil for the financial year ended Dec 31, 2011 (FY11), up from RM39.1mil previously on RM47.7mil gain on revaluation of investment properties. Its full-year revenue stood at RM94.9mil from RM90.8mil previously.
Hektar REIT declared a final quarter dividend per unit of 3 sen.
By The Star
Its revenue rose to RM24.2mil against RM24mil previously.
Hektar REIT’s net profit increased to RM86.6mil for the financial year ended Dec 31, 2011 (FY11), up from RM39.1mil previously on RM47.7mil gain on revaluation of investment properties. Its full-year revenue stood at RM94.9mil from RM90.8mil previously.
Hektar REIT declared a final quarter dividend per unit of 3 sen.
By The Star
Monday, February 13, 2012
Project aimed at transforming Sg Klang and Sg Gombak
A 110km stretch of the Klang River will be cleaned to improve the water quality by the year 2020 under the River of Life (ROL) beautification project.
The project is aimed at transforming the Klang and Gombak River into a vibrant and liveable waterfront and to increase the economic viability of the area.
It is one of the five Entry Point Projects (EPP) for the Greater Kuala Lumpur/Klang Valley under the Economic Transformation Programme (ETP).
A master-planning and beautification work will be carried out in 11 precincts within a 10.7km stretch along the Klang and Gombak river corridor.
The first phase of the project along the Klang River is near Dataran Merdeka, the Sultan Abdul Samad Building, Central Market, Chinatown and Masjid Jamek.
Kuala Lumpur mayor Tan Sri Ahmad Fuad Ismail said Aecom, a consultant appointed by City Hall (DBKL), was drafting the ROL masterplan and would engage with stakeholders to gather insight and views to ensure the relevance and sustainability of the project.
The participation of the stakeholders in the early planning stage was important to ensure the success of the ROL masterplan, he said at a one-day workshop held at a hotel recently.
Ahmad Fuad added that Aecom, which was appointed on Jan 5, has been tasked to prepare the masterplan within the next six months.
The workshop is the second in preparing the masterplan. The first workshop was held on Jan 5 and 6.
He said the workshop was aimed at:
·Involving the public and representatives of the residents, landowners, businesses, developers and all stakeholders in the early planning of the ROL masterplan;
·Explain to the public the proposed initial draft masterplan; and
·Seek views and ideas of all stakeholders to help the consultant prepare a comprehensive masterplan and take into account the views of all parties.
“This workshop also aims to foster a healthy partnership between the Government and the people to plan and prepare a masterplan for the beautification and development of our rivers,” he said.
Ahmad Fuad said the Government was working to propel economic development towards a high-income country through the National Key Economic Areas (NKEA) and to position the Greater Kuala Lumpur/Klang Valley among the top 20 liveable cities in the world by the year 2020.
He said within the ROL, there were three main components — cleaning of the river, beautification and development. As a result of this, it is expected to trigger an indirect economic investment to the land along the river.
“These parcels of land will be identified and will be offered for development soon,’’ he added.
Ahamd Fuad said to ensure the success of the ROL, several key initiatives needed to be improved such as upgrading existing sewerage facilities, expanding regional sewerage treatment plants, installation of waste water treatment plants at five wet markets, installation of additional gross pollutant traps to improve water quality and relocation of squatters.
By The Star
Slower high-end property sector
PETALING JAYA: The Malaysian Institute of Estate Agents (MIEA) expects a slowdown in the high-end residential property sub-sector this year as potential buyers are likely to maintain a cautious approach in light of the economic uncertainties in Europe and the United States.
Natural progression: Paul says that rising property prices in Malaysia has forced many people to buy homes further away from the city.
“There is a lot of caution now due to the uncertainty in Europe and the United States. With fear of a potential spillover effect, most buyers are adopting a wait-and-see' approach,” said MIEA president Nixon Paul.
“We don't expect to see any slowdown for property transactions within the RM300,000-to-RM600,000 range and believe there will still be a lot of activity within this segment.”
Paul said the various “checks and balances” by Bank Negara to control the increase in household debt would also affect residential property transactions.
Starting this year, banks have been using net income instead of gross income to calculate the debt service ratio for loans.
According to reports, this is a pre-emptive move by Bank Negara to contain the rise in consumer debts. The guidelines cover housing, personal and car loans, credit cards, receivables and loans for the purchase of securities.
The MIEA is the authorised body representing all registered estate agents in Malaysia.
Paul said there was an over-supply of condominium units in the country and that rental rates for such units could be affected.
Despite this, he said, it would be a good time now to invest in the high-rise market for long-term investors.
“We are one of the cheapest in the region and if you are looking to invest over the long term, say 10 years, now is a good time to get into the condominium market. Over the next decade, prices will appreciate.
“But if you're dependent on rental income to service your loan, I wouldn't advise it.”
Paul noted that rising property prices in Malaysia had forced many people to buy homes further away from the city.
“I do feel sorry for the average guy, but if you look anywhere else in the world, it's a natural progression. Those who can't afford it live further away from the city.
“It's happening in cities all over the world. Out of necessity, you'll see more people buying condominiums instead of landed property.”
Paul said one of the main issues facing residential property transactions today was the big disparity between the intended property price and valuation price.
“A buyer and seller might agree on a particular price but the valuation might not be the same. When that happens, the loan application procedure becomes a problem and the deal ends up getting aborted,” he said.
Separately, Paul said the commercial property sub-sector would be buoyant this year.
“It's going to be a buzz! Most investors are shifting to commercial from residential because they feel this sub-sector is more resilient, especially in a downturn,” he said, adding that there was pent-up demand for commercial property in Malaysia.
“We believe that the industrial sub-sector will also be quite active. Property prices in Bukit Jelutong and Glenmarie are at an all-time high.”
Paul said the office sub-sector might face a slowdown due to oversupply in space.
“There is an oversupply of office space. Rentals in prime locations such as KLCC may not be affected but not those located in the outskirts of the city,” he said, adding that major shopping complexes, especially within Kuala Lumpur, would continue to experience good take-up this year.
Despite the global uncertainty, Paul said that property was still the “best place to invest in.”
“It's still the safest place to put your money in. These days, a lot of people are shifting their investments into property. You can hedge yourself well against inflation when you invest in property,” he said.
By The Star
“There is a lot of caution now due to the uncertainty in Europe and the United States. With fear of a potential spillover effect, most buyers are adopting a wait-and-see' approach,” said MIEA president Nixon Paul.
“We don't expect to see any slowdown for property transactions within the RM300,000-to-RM600,000 range and believe there will still be a lot of activity within this segment.”
Paul said the various “checks and balances” by Bank Negara to control the increase in household debt would also affect residential property transactions.
Starting this year, banks have been using net income instead of gross income to calculate the debt service ratio for loans.
According to reports, this is a pre-emptive move by Bank Negara to contain the rise in consumer debts. The guidelines cover housing, personal and car loans, credit cards, receivables and loans for the purchase of securities.
The MIEA is the authorised body representing all registered estate agents in Malaysia.
Paul said there was an over-supply of condominium units in the country and that rental rates for such units could be affected.
Despite this, he said, it would be a good time now to invest in the high-rise market for long-term investors.
“We are one of the cheapest in the region and if you are looking to invest over the long term, say 10 years, now is a good time to get into the condominium market. Over the next decade, prices will appreciate.
“But if you're dependent on rental income to service your loan, I wouldn't advise it.”
Paul noted that rising property prices in Malaysia had forced many people to buy homes further away from the city.
“I do feel sorry for the average guy, but if you look anywhere else in the world, it's a natural progression. Those who can't afford it live further away from the city.
“It's happening in cities all over the world. Out of necessity, you'll see more people buying condominiums instead of landed property.”
Paul said one of the main issues facing residential property transactions today was the big disparity between the intended property price and valuation price.
“A buyer and seller might agree on a particular price but the valuation might not be the same. When that happens, the loan application procedure becomes a problem and the deal ends up getting aborted,” he said.
Separately, Paul said the commercial property sub-sector would be buoyant this year.
“It's going to be a buzz! Most investors are shifting to commercial from residential because they feel this sub-sector is more resilient, especially in a downturn,” he said, adding that there was pent-up demand for commercial property in Malaysia.
“We believe that the industrial sub-sector will also be quite active. Property prices in Bukit Jelutong and Glenmarie are at an all-time high.”
Paul said the office sub-sector might face a slowdown due to oversupply in space.
“There is an oversupply of office space. Rentals in prime locations such as KLCC may not be affected but not those located in the outskirts of the city,” he said, adding that major shopping complexes, especially within Kuala Lumpur, would continue to experience good take-up this year.
Despite the global uncertainty, Paul said that property was still the “best place to invest in.”
“It's still the safest place to put your money in. These days, a lot of people are shifting their investments into property. You can hedge yourself well against inflation when you invest in property,” he said.
By The Star
IOI mulls relisting of arm
PETALING JAYA: IOI Corp Bhd is mulling a relisting of its property arm that would see the group unlock values in that segment and enhance the attractiveness of the parent company to investors as a more plantation-focused company, according to reliable sources.
“The group is in discussion with two investment banks on this to get feedback, especially on the right timing of the exercise,” said a source.
Analysts said the relisting of its property division would increase the stature of IOI Corp as a pure plantation play which would likely have higher valuations.
“It will reduce the conglomerate discount and transform IOI Corp into a pure plantation play, with a controlling stake in a valuable property company IOI Properties. Sole industry companies usually tend to fetch higher valuations,” an analyst with a local bank-backed research house said.
IOI Corp may wish to also time the relisting of its property arm in line with a more bullish view on the property sector.
In a sales note to its clients issued in January, Maybank IB said that potential downsides had already been priced into the property sector and that it did not discount the possibility of raising its call on the property sector from “neutral” to “overweight” in the medium to longer term as developers today were “backed by considerable unbilled sales, providing near-term earnings visibility.”
IOI Corp had privatised its arm in 2009. Then known as IOI Properties Bhd, IOI Corp had on Februuary 2009 launched a takeover offer at RM2.60 per share.
The takeover was successful and IOI Properties was subsequently delisted on April 28, 2009. It is today wholly-owned by IOI Corp. IOI Corp has been actively growing its property business since.
In January it acquired six acres of land in Singapore for RM995.5mil to build high-end condominums and will have to settle the entire amount to the government of Singapore within 90 days from the date of the tender acceptance letter.
Presently, it has seven projects which it is developing locally with estimated gross development values (GDVs) of almost RM20bil.
Properties can testify to its track record in building property projects that have sold well. Excluding the latest land buy in Singapore, it is also presently developing high-end projects in the southern neighbouring island state with GDVs close to RM6bil.
IOI Properties has completed property development projects in Puchong, Putrajaya, southern Johor and Singapore before.
Meanwhile, banking sources also said that IOI Corp was in talks with banks to raise more funds.
“It is in a good position to do so, considering its huge cash flows from its plantation side of the business,” said one banker.
The funds raised should give IOI Corp sufficient funds to not only pay for the Singapore land acquisition but also ready funds in the event it chooses to buy more assets such as plantation land.
Based on its results for the first quarter ended Sept 30, 2011, IOI Corp had total short and long-term borrowings of RM688.24mil and RM4.87bil respectively. Most of these debts are denominated in the US dollar, the Singapore dollar and the yen.
IOI Corp had cash and cash equivalents of RM3.22bil as at Sept 30, 2011.
By The Star
“The group is in discussion with two investment banks on this to get feedback, especially on the right timing of the exercise,” said a source.
Analysts said the relisting of its property division would increase the stature of IOI Corp as a pure plantation play which would likely have higher valuations.
“It will reduce the conglomerate discount and transform IOI Corp into a pure plantation play, with a controlling stake in a valuable property company IOI Properties. Sole industry companies usually tend to fetch higher valuations,” an analyst with a local bank-backed research house said.
IOI Corp may wish to also time the relisting of its property arm in line with a more bullish view on the property sector.
In a sales note to its clients issued in January, Maybank IB said that potential downsides had already been priced into the property sector and that it did not discount the possibility of raising its call on the property sector from “neutral” to “overweight” in the medium to longer term as developers today were “backed by considerable unbilled sales, providing near-term earnings visibility.”
IOI Corp had privatised its arm in 2009. Then known as IOI Properties Bhd, IOI Corp had on Februuary 2009 launched a takeover offer at RM2.60 per share.
The takeover was successful and IOI Properties was subsequently delisted on April 28, 2009. It is today wholly-owned by IOI Corp. IOI Corp has been actively growing its property business since.
In January it acquired six acres of land in Singapore for RM995.5mil to build high-end condominums and will have to settle the entire amount to the government of Singapore within 90 days from the date of the tender acceptance letter.
Presently, it has seven projects which it is developing locally with estimated gross development values (GDVs) of almost RM20bil.
Properties can testify to its track record in building property projects that have sold well. Excluding the latest land buy in Singapore, it is also presently developing high-end projects in the southern neighbouring island state with GDVs close to RM6bil.
IOI Properties has completed property development projects in Puchong, Putrajaya, southern Johor and Singapore before.
Meanwhile, banking sources also said that IOI Corp was in talks with banks to raise more funds.
“It is in a good position to do so, considering its huge cash flows from its plantation side of the business,” said one banker.
The funds raised should give IOI Corp sufficient funds to not only pay for the Singapore land acquisition but also ready funds in the event it chooses to buy more assets such as plantation land.
Based on its results for the first quarter ended Sept 30, 2011, IOI Corp had total short and long-term borrowings of RM688.24mil and RM4.87bil respectively. Most of these debts are denominated in the US dollar, the Singapore dollar and the yen.
IOI Corp had cash and cash equivalents of RM3.22bil as at Sept 30, 2011.
By The Star
Saturday, February 11, 2012
Condos on the hills
DAMANSARA Foresta, a project by Land & General Bhd (L&G), will mark the company's first residential project after a long hiatus on its old tuft. Located adjacent to the Bukit Lanjan Forest Reserve, Damansara Foresta comprises 42 acres of which only 50% will be developed.
The land was purchased decades ago before it was taken over by Hong Kong-based developer Tan Sri David Chiu several years ago.
The re-emergence of the company in Sri Damansara will, in all likelihood, bode well for the company which went through a very challenging period during the Asian financial crisis.
Under its new management headed by managing director Low Gay Teck, previously with the Mayland group, things seem to be moving for L&G again.
Unlike Mayland group, which focuses predominantly on studio units of about 500 sq ft in Sri Hartamas, L&G will take a different route.
Says Low: “Sri Damansara is very much a family community. This provided us the direction for Damansara Foresta, which will focus on sizes ranging between 1,400 sq ft and 1,600 sq ft.”
The salient point about Foresta is the contours of the land. About half of the 42 acres are class three and four slopes where development is not allowed to take place. Only class one and two slopes can be developed. Slopes are divided into four classes class one for slopes below 15 degrees, class two between 15 and 25 degrees, class three between 25 and 35 degrees and class four, above 35 degrees.
Says its marketing manager Lim Kok Yee: “It is a very beatiful piece of land and there are not much of greens left in the Klang Valley.”
The view from the top will be lovely and the company is leveraging on this. As for the class three and four slopes that we cannot build on, these will remain and be enhanced for the community's use.”
There will be a canopy bridge and hideaways dotting the “undeveloped” portion of the land.
Lim believes the pursuit of greenery whether landscaped or natural will portend well for the project.
Although the project is yet to be launched, the first two blocks comprising a total of 464 units are nearly fully sold.
The project was opened for sale early last month at RM500 to RM550 per sq ft. Due to popular demand, the second block was opened for sale the same month.
Lim says the project will be officially launched at the end of this month with sales starting for the third block. They are still working on the price. The first block was launched with units with a built-up of 1,400 sq ft priced at more than RM700,000. When completed, the project will have 928 units. The entire project, comprising four separate projects on that strip of land, will have a total of 2,700 units.
So far, buyers are predominantly upgraders from Sri Damansara, Desa ParkCity and Petaling Jaya who are attracted to the green factor. Damansara Foresta is also expected to add quite a bit of buzz into that established locality which has been around for about 20 years. It is a neighbourhood with lots of wide tree-lined roads but has seen little development the last 20 years. The most recent was 8trium, an office block also by L&G after the Mayland take-over. That office block will be completed in about three months.
TA Global Bhd, the property arm of TA Enterprise Bhd, is also developing Damansara Avenue which comprises serviced apartments and commercial office and retail blocks. While the acreage L&G's 42 acres versus TA Global's 48 acres are about the same, the similarity stops there. Damansara Foresta is a residential freehold development while Damansara Avenue will be on commercial land with retail and office elements with higher utilities and tax rates.
Damansara Foresta will be set apart from Damansara Avenue because of the green factor as it could only make use of half of its land for development purposes while Damanasara Avenue will be pretty much another integrated mixed development. Damansara Foresta is located 180 metres above sea level while TA Global's project fronts the Damansara-Puchong Highway (LDP). The elevated land will give Damansara Foresta a certain ambience that TA Global's project will not.
Access may be an issue in time to come, however. Although the developer has painted a pretty picture with accessibility via LDP, Middle Ring Road 2 (MRR2), New Klang Valley Expressway and Sprint Highway, traffic is very heavy on some of these roads with the LDP and the MRR2 being very congested during the peak hours.
New developments along the LDP will eventually feed into the already congested highway and surrounding infrastructure. Other than Damansara Foresta and Damansara Avenue, new and upcoming developments include the 25-acre Empire City project and three other projects by the Empire group in Damansara Perdana, several condominium projects by Perdana ParkCity Sdn Bhd and new developments in and around Sg Buloh.
Unless the government approves new infrastructure, the congestion along the LDP and surrounding roads and highways is expected to be tremendous.
By The Star
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