I-Berhad is set to build 348 condominium units and 20 duplex houses in the city of digital lights in Seksyen 7 here. Each residential unit in i-City starts from RM340,000.
The i-Residence project constituted 20 per cent of the 29ha i-City development, I-Berhad CEO Datuk Eu Hong Chew told reporters after the ground-breaking ceremony officiated by Selangor Menteri Besar Tan Sri Abdul Khalid Ibrahim here today. Present was Shah Alam Mayor Datuk Mohd Jaafar Mohd Atan.
Eu said i-City, dubbed the first lighscape tourism destination in Malaysia with state-of-the-art LED technology showcase, would also have a new attraction inspired by Clarke Quay, a riverside development in Singapore.
It was in line with the state government's project to upgrade the 7-km Sungai Rasau that cuts across i-City, he said.
"We will build floating restaurants like Clarke Quay that can draw more tourists but the project will start after the Sungai Rasau upgrade that is expected to take about nine months," he said.
This development was included in the estimated gross development value of RM1 billion, he added.
By Bernama
Friday, April 6, 2012
KSL Resort set to be a hit among travellers
KSL Resort executive chairman Ku Hwa Seng said the city's average occupancy rate had increased from 68 per cent two years ago to 78 per cent last year.
Riding on this, Ku is confident that KSL Resort will be a hit among travellers and businessmen.
KSL Resort is having its soft opening today.
"Banking on the high occupancy rate, our resort hotel is offering another alternative for tourists and visitors who want a combination of business and leisure during their stay in the city.
"This is not only the biggest hotel in Johor, but also the biggest city hotel in the country," Ku told a media briefing at the hotel on Wednesday.
The five-star resort hotel, built on top of the KSL Mall in Taman Century, will feature 868 rooms in two face-to-face 20-storey tower blocks.
Developed at a cost of RM200 million by KSL Holdings Bhd, the hotel will be fully opened by May 15.
Ku said the resort hotel formed part of the RM1 billion development in the area, which also features the shopping mall, which was opened in December 2010, and an exclusive condominium called D' Esplanade Residence, scheduled for opening in the third quarter of this year.
It is called a resort hotel as the facilities are more that of a resort than a city hotel.
Among the resort facilities coming up at the hotel are a water theme park, electronics golf simulators, a lake-type swimming pool, among others.
Of the total rooms, 596 are superior rooms, 239 are deluxe rooms and 33 are suites.
The resort hotel also boasts the biggest restaurant seating 560 persons.
It will also have a pillarless ballroom on the seventh floor to accomodate up to 1,000 people.
By Business Times
L&G unscathed by new ruling
Developer continues to rake in sales despite Bank Negara’s lending guidelines
KUALA LUMPUR: Land & General Bhd (L & G) has been recording encouraging sales numbers despite Bank Negara's move to implement responsible lending to contain surging household debt.
L & G currently has three ongoing projects, two of which are residential projects Elements@Ampang and Damansara Foresta. The other is 8trium, a commercial project.
Managing director Low Gay Teck said that for the months of February and March 2012, 100 units of Elements@Ampang had been booked and sold. The project has a total of 1,040 units and is currently selling for RM850 per sq ft. The bookings and sales for February and March 2012 have amounted to about RM60mil.
Its residential development Damansara Foresta in Sri Damansara has recorded almost a 100% sell rate in both Tower A and Tower B. In Tower D, more than 15% have been sold. Tower D has not been officially launched yet. The buyers were either from the company's database or have registered with the company.
L & G looked to officially launch Tower D in two months, said executive director Ferdaus Mahmood. “We hope we can launch Tower C with Tower D. It depends on the market.”
The Damansara Foresta units, which range from 1,400 to 1,600 sq ft each, are currently selling for about RM600 per sq ft from RM500 to RM550 per sq ft. The project is due for completion by end-2014.
The 8trium project, which is also located in Sri Damansara, is expected to be completed in two months. The project has had a sell-rate of about 93%.
At the company EGM yesterday, the proposal for L&G to provide further financial assistance of RM43.86mil to its subsidiary Elite Forward Sdn Bhd was approved by the shareholders.
Elite Forward, which has a 50.01% stake in Elements@Ampang, is undertaking a joint venture with the Mayland group. The project, which has a gross development value of RM700mil and will cost RM460mil to build, is due for completion in June, 2014.
L & G was also exploring land acquisitions to expand its land bank in Johor Baru, Penang, and the Klang Valley in the next six months, Low said.
By The Star
'Penang has potential to become boating hub'
GEORGE TOWN: Phuket-based entreprenuer and boating enthusiast Kanit Yongsakul is bullish over Penang's potential in turning into a marine playground, if sufficient international-class marinas are available in the island state.
The developer of two marinas in Thailand - one in Phuket and the other in Krabi - said Penang has all the right attributes of becoming a port of choice for the well-heeled boating crowd.
"I see no reason why new yachts which are built in England need to be uploaded in Singapore before heading for Phuket, instead of Penang where you have a deep seaport and the potential to create many jobs for the marine industry," he told Business Times on Wednesday.
Khanit, who has been a leading figure in Phuket's marine industry for almost two decades and the developer of the island's first marina in the early 1990s, is no stranger to Penang where he sails regularly.
Singling out attributes such as good food, a multi-cultural population and George Town's Unesco listing status, Khanit said Penang can do with at least two more marinas on the island's southern and northern parts.
"This will ensure there is no competition between the developers of marinas and plenty of new jobs can be created, while the island's population can be spread out," he added.
The island is now home to two fully-operating marinas at Straits Quay in Seri Tanjung Pinang and one operated by the Marine Police Department at Batu Uban.
Kanit, who is the founder of the Phuket Boat Lagoon, said some issues in Penang marinas need to be addressed if the authorities are serious about raising the island's profile as a boating spot.
"There is currently a shortage of fuelling facilities along with suitable and accessible local food outlets for the crew of the boats berthing here.
"There is also a need for safe anchorage and good road accessibility to marinas."
The civil and mining engineer, who built Phuket's first marina with 80 berths, suggested that incentives such tax holidays be given to developers of marinas here.
By Business Times
The developer of two marinas in Thailand - one in Phuket and the other in Krabi - said Penang has all the right attributes of becoming a port of choice for the well-heeled boating crowd.
Khanit, who has been a leading figure in Phuket's marine industry for almost two decades and the developer of the island's first marina in the early 1990s, is no stranger to Penang where he sails regularly.
Singling out attributes such as good food, a multi-cultural population and George Town's Unesco listing status, Khanit said Penang can do with at least two more marinas on the island's southern and northern parts.
"This will ensure there is no competition between the developers of marinas and plenty of new jobs can be created, while the island's population can be spread out," he added.
The island is now home to two fully-operating marinas at Straits Quay in Seri Tanjung Pinang and one operated by the Marine Police Department at Batu Uban.
Kanit, who is the founder of the Phuket Boat Lagoon, said some issues in Penang marinas need to be addressed if the authorities are serious about raising the island's profile as a boating spot.
"There is currently a shortage of fuelling facilities along with suitable and accessible local food outlets for the crew of the boats berthing here.
"There is also a need for safe anchorage and good road accessibility to marinas."
The civil and mining engineer, who built Phuket's first marina with 80 berths, suggested that incentives such tax holidays be given to developers of marinas here.
By Business Times
TDM secures nod on land for Terengganu hospital
Chief executive officer Badrul Hisham Mahari said the new hospital will cost RM170.2 million, excluding the cost of the lease of the land and incidental fees.
"It will be financed by internally generated funds and/or bank borrowings, which the board has yet to decide," Badrul Hisham said after the company's shareholders meeting yesterday.
Chairman Datuk Roslan Awang Chik said the new eight-storey hospital will replace the current Kuala Terengganu Specialist (KTS) hospital which is operating near maximum capacity.
"The hospital, on a 23,424 sq m land, will be the city's flagship specialist hospital that will serve about 338,000 people of Kuala Terengganu," he said.
Roslan said construction will start immediately after the completion of the lease documents, to be signed with Tabung Amanah Warisan Ne-geri Terengganu, owner of the land.
The hospital is expected to be completed within 24 months.
It will provide more comprehensive healthcare facilities, accommodate more in-patients, operate more specialist clinics and other quality healthcare services, Roslan said.
Its features include five operating theatres, a 12-bedded intensive care unit (ICU) and one-and-a-half storey car park with 281 parking bays.
The current KTS Hospital has 33 beds, a two-bedded ICU and two operating theatres.
It also offers consultancy services on general surgery, obstetrics and gynecology, orthopaedics and anaesthetics.
On TDM's healthcare division, Badrul Hisham said with an average 12 per cent increase in the number of patients since 2007, it has recorded consecutive average annual increase in revenue of RM31 million.
For the past four years, the division contributed an average of seven per cent to the group's pre-tax profit.
By Business Times
Stamp duty charge may affect wealthy property owners in UK
Kuala Lumpur: A couple of changes in UK's property tax structures announced in late March may affect wealthy Malaysians who have bought into that property market.
On March 21, Chancellor of the Exchequer George Osborne introduced a new 15% stamp duty rate, three times the previous level for residential properties over £2mil (RM9.8mil) bought in the name of companies.
Property consultancy Savills said while it needed to look at details of the anti-avoidance provisions, the 15% stamp duty “marks the end of the use of corporate vehicles to avoid stamp duty.”
It added that a 15% stamp duty charge for such transactions was probably a sufficient deterrent.
“The big question is whether there will be an opportunity for those who have used this route to undo it without being hit by the proposed capital gains tax charge,” said Savills in its research report.
“We'll also need to look at whether transfer from corporate to personal ownership triggers a stamp duty charge at 7%,” Savills said.
Savills said the move could impact on London's attractiveness to such buyers.
“However, much depends on the detail,” the report said.
Zahid Alauddin, senior partner at Kingfields (Singapore), said there were two reasons why a corporate vehicle was used when buying property. The first may be to circumvent the hefty 40% inheritance tax. The second may be that wealthy individuals want to protect their privacy.
“The 15% rate for investors usingcompanies to hold UK properties will be hard-hitting and may deter people to hold properties using such structures.”
A further sting in the tail came from changes in capital gains tax rules for overseas companies, said Zahid.
The British government imposed a real property gains tax of 28% on properties of £2mil and above. There was no capital gains tax on real estate for foreign buyers prior to the budget.
The charge of capital gains tax is to be extended to gains realised on disposal by “non-resident non-natural persons” of UK residential property.
“Non-natural persons” would include companies, collective investment schemes (including unit trusts) and partnerships in which the non-natural person was a partner, said Zahid. These changes will apply from April 6, 2013.
“Only time will tell the impact of these measures,” said Zahid.
Since 2009, the demand from overseas investors for London's prime real estate has resulted in double-digit price increases in prime London areas. The global financial crisis had sent prices into a trough in 2008.
Henry Butcher group said the move would have no effect as most Malaysians bought below £1.5mil.
By The Star
On March 21, Chancellor of the Exchequer George Osborne introduced a new 15% stamp duty rate, three times the previous level for residential properties over £2mil (RM9.8mil) bought in the name of companies.
Property consultancy Savills said while it needed to look at details of the anti-avoidance provisions, the 15% stamp duty “marks the end of the use of corporate vehicles to avoid stamp duty.”
It added that a 15% stamp duty charge for such transactions was probably a sufficient deterrent.
“The big question is whether there will be an opportunity for those who have used this route to undo it without being hit by the proposed capital gains tax charge,” said Savills in its research report.
“We'll also need to look at whether transfer from corporate to personal ownership triggers a stamp duty charge at 7%,” Savills said.
Savills said the move could impact on London's attractiveness to such buyers.
“However, much depends on the detail,” the report said.
Zahid Alauddin, senior partner at Kingfields (Singapore), said there were two reasons why a corporate vehicle was used when buying property. The first may be to circumvent the hefty 40% inheritance tax. The second may be that wealthy individuals want to protect their privacy.
“The 15% rate for investors usingcompanies to hold UK properties will be hard-hitting and may deter people to hold properties using such structures.”
A further sting in the tail came from changes in capital gains tax rules for overseas companies, said Zahid.
The British government imposed a real property gains tax of 28% on properties of £2mil and above. There was no capital gains tax on real estate for foreign buyers prior to the budget.
The charge of capital gains tax is to be extended to gains realised on disposal by “non-resident non-natural persons” of UK residential property.
“Non-natural persons” would include companies, collective investment schemes (including unit trusts) and partnerships in which the non-natural person was a partner, said Zahid. These changes will apply from April 6, 2013.
“Only time will tell the impact of these measures,” said Zahid.
Since 2009, the demand from overseas investors for London's prime real estate has resulted in double-digit price increases in prime London areas. The global financial crisis had sent prices into a trough in 2008.
Henry Butcher group said the move would have no effect as most Malaysians bought below £1.5mil.
By The Star
MBSB plans to sell land
Its Johor and Sungai Buloh properties can earn over RM200mil
PETALING JAYA: Malaysia Building Society Bhd (MBSB) expects to realise more than RM200mil from the sale of strategic land in Sungai Buloh and Johor.
Zaini: ‘We have a bigger loan target initially.’
“The Johor land will be disposed of under a scheme endorsed by the board this morning, while the Sungai Buloh land disposal is still waiting for legal confirmation,” said MBSB president and chief executive officer Datuk Ahmad Zaini Othman.
He said the company would sell and recover in full its investments while also benefiting from land appreciation over the years.
“By Monday you would see some bidding process, and another piece of Johor land under the disposal scheme is waiting for the customer to confirm payment,” he said after the company AGM.
According to its annual report, the company owns 22.7 acres of leasehold land in Bandar Yahya Awal in Johor and 14-acre freehold land in Sungai Buloh. They have a combined net book value of RM93mil.
The company still has about 58 acres of vacant land in different parts of Malacca with a book value of RM53.1mil which is said to be legacy land left by the previous management who had attempted to venture into property development, albeit unsuccessfully.
MBSB, which is 65.5%-owned by the Employees Provident Fund (EPF), also expects to grow its loan base by 15%-20% this year, after recording net loans and advances growth of 42% to RM15.2bil compared to the same period in 2010.
Riding on that achievement, MBSB doubled its net profit to RM325.4mil for 2011 from RM145mil in 2010.
“We have a bigger loan target initially, but in the face of reality, market conditions and also the issue of domestic operating parameters, we feel that the target is a realistic figure,” Zaini said.
On potential mergers and acquisitions, he said it was up to the shareholders to decide.
“My mandate is very simple, which is to make as much profit as possible for the company. At this stage, we don't have any plan for any corporate exercise,” he said.
He said this was the third year MBSB was under the new management transformation programme.
“There will be further initiatives to strengthen the business. Over the last three years, we have achieved a collective profit before tax of RM715mil, which included the provision of about RM300mil. All in all, we have made about RM1bil excluding the provision,” he said.
On the company's expansion plan, he said MBSB would open 10 more branches in addition to 10 representative offices throughout the country.
“We would spend about RM700,000 to set up each branch. It would be quite extensive in terms of look and services, and we would focus more on fee-based income at our branches,” he said.
On the responsible lending guidelines imposed on the financial industry by Bank Negara, Zaini said the company was operating under the guidelines although it was not governed by them.
“The guidelines are not entirely new to us as we had always look at an individual's disposable income. As such, we do not expect a big impact as a result, We are always sensitive and mindful of the authorities' reasons for such guidelines,” he said.
He also expects the recent pay hike for civil servants to benefit MBSB's personal finance business.
By The Star
PETALING JAYA: Malaysia Building Society Bhd (MBSB) expects to realise more than RM200mil from the sale of strategic land in Sungai Buloh and Johor.
“The Johor land will be disposed of under a scheme endorsed by the board this morning, while the Sungai Buloh land disposal is still waiting for legal confirmation,” said MBSB president and chief executive officer Datuk Ahmad Zaini Othman.
He said the company would sell and recover in full its investments while also benefiting from land appreciation over the years.
“By Monday you would see some bidding process, and another piece of Johor land under the disposal scheme is waiting for the customer to confirm payment,” he said after the company AGM.
According to its annual report, the company owns 22.7 acres of leasehold land in Bandar Yahya Awal in Johor and 14-acre freehold land in Sungai Buloh. They have a combined net book value of RM93mil.
The company still has about 58 acres of vacant land in different parts of Malacca with a book value of RM53.1mil which is said to be legacy land left by the previous management who had attempted to venture into property development, albeit unsuccessfully.
MBSB, which is 65.5%-owned by the Employees Provident Fund (EPF), also expects to grow its loan base by 15%-20% this year, after recording net loans and advances growth of 42% to RM15.2bil compared to the same period in 2010.
Riding on that achievement, MBSB doubled its net profit to RM325.4mil for 2011 from RM145mil in 2010.
“We have a bigger loan target initially, but in the face of reality, market conditions and also the issue of domestic operating parameters, we feel that the target is a realistic figure,” Zaini said.
On potential mergers and acquisitions, he said it was up to the shareholders to decide.
“My mandate is very simple, which is to make as much profit as possible for the company. At this stage, we don't have any plan for any corporate exercise,” he said.
He said this was the third year MBSB was under the new management transformation programme.
“There will be further initiatives to strengthen the business. Over the last three years, we have achieved a collective profit before tax of RM715mil, which included the provision of about RM300mil. All in all, we have made about RM1bil excluding the provision,” he said.
On the company's expansion plan, he said MBSB would open 10 more branches in addition to 10 representative offices throughout the country.
“We would spend about RM700,000 to set up each branch. It would be quite extensive in terms of look and services, and we would focus more on fee-based income at our branches,” he said.
On the responsible lending guidelines imposed on the financial industry by Bank Negara, Zaini said the company was operating under the guidelines although it was not governed by them.
“The guidelines are not entirely new to us as we had always look at an individual's disposable income. As such, we do not expect a big impact as a result, We are always sensitive and mindful of the authorities' reasons for such guidelines,” he said.
He also expects the recent pay hike for civil servants to benefit MBSB's personal finance business.
By The Star
Yung Kong unit selling land for RM12mil
KUALA LUMPUR: Yung Kong Galvanising Industries Bhd (YKGI) subsidiary Star Shine Marketing Sdn Bhd (SSM) has entered into a sale and purchase agreement with Kota Tropika Development Sdn Bhd to dispose of a parcel of freehold vacant land in Klang for RM12.218mil.
In a filing with Bursa Malaysia yesterday, YKGI said that the land was disposed of to reduce SSM's bank borrowings and interest expense.
“This is part of YKGI group's strategic transformation plan,” it said.
The disposal is expected to be completed by July.
By Bernama
In a filing with Bursa Malaysia yesterday, YKGI said that the land was disposed of to reduce SSM's bank borrowings and interest expense.
“This is part of YKGI group's strategic transformation plan,” it said.
The disposal is expected to be completed by July.
By Bernama
Hua Yang arm to acquire land for RM15.2m
Hua Yang Bhd's unit Yoon Lian Realty Sdn Bhd has entered into a conditional sale and purchase agreement with Peter Brickworks Sdn Bhd to acquire 156 lots of freehold titles in Ipoh for RM15.2
million.
The proposed acquisition of 8.4 hectares of land is in line with the company's plan to expand its presence in Perak, it said in its filing to Bursa Malaysia here today.
The exercise is expected to be completed by the third quarter of the financial year ending March 31, 2013.
By Bernama
million.
The proposed acquisition of 8.4 hectares of land is in line with the company's plan to expand its presence in Perak, it said in its filing to Bursa Malaysia here today.
The exercise is expected to be completed by the third quarter of the financial year ending March 31, 2013.
By Bernama
Landowners in talks over MRT project
KUALA LUMPUR: Two landowners are negotiating a settlement with the developers of the multi-billion ringgit Klang Valley mass rapid transit (MRT) project over the acquisition of their land here.
Mayland Century Sdn Bhd and Spirit Domain Sdn Bhd, the registered owners of the land, applied to the High Court for leave for judicial review yesterday.
In its application, Mayland Century is seeking to quash the declaration of the Federal Territory Lands and Mines director in respect of the intended acquisition of 1,492sq metre of their land in mukim Petaling here for the project that will be carried out by Mass Rapid Transit Corporation Sdn Bhd (MRT Corp).
In its application, Spirit Domain wants an order to quash the decision of the same Lands and Mines director seeking to acquire a few lots of land, each covering 199sq metre.
High Court (Appellate and Special Powers) judge Justice Abang Iskandar Abang Hashim set May 21 for mention after meeting the parties in chambers.
Speaking to reporters later, Senior Federal Counsel Noor Hisham Ismail said the two landowners were currently negotiating with MRT Corp for a possible settlement.
“Both sides (the landowners and MRT Corp) are looking into reaching an amicable settlement,” Noor Hisham said.
In their court papers filed on Feb 20, Mayland Century asked for the land acquisition proceedings to be stayed pending disposal of the application.
Mayland Century stated that the Lands and Mines director, in making the declaration to acquire the lands, had acted without sufficient ground, unfairly and contrary to the rules of natural justice.
Mayland Century named the director and the Federal Territory land administrator as respondents.
In the application filed by Spirit Domain, also on Feb 20, the company named the FT Lands and Mines director, the Government and MRT Corp as respondents.
Alternatively, Spirit Domain wants the court to issue an order declaring that the decision to acquire the lands is null and void and of no effect.
By The Star
Mayland Century Sdn Bhd and Spirit Domain Sdn Bhd, the registered owners of the land, applied to the High Court for leave for judicial review yesterday.
In its application, Mayland Century is seeking to quash the declaration of the Federal Territory Lands and Mines director in respect of the intended acquisition of 1,492sq metre of their land in mukim Petaling here for the project that will be carried out by Mass Rapid Transit Corporation Sdn Bhd (MRT Corp).
In its application, Spirit Domain wants an order to quash the decision of the same Lands and Mines director seeking to acquire a few lots of land, each covering 199sq metre.
High Court (Appellate and Special Powers) judge Justice Abang Iskandar Abang Hashim set May 21 for mention after meeting the parties in chambers.
Speaking to reporters later, Senior Federal Counsel Noor Hisham Ismail said the two landowners were currently negotiating with MRT Corp for a possible settlement.
“Both sides (the landowners and MRT Corp) are looking into reaching an amicable settlement,” Noor Hisham said.
In their court papers filed on Feb 20, Mayland Century asked for the land acquisition proceedings to be stayed pending disposal of the application.
Mayland Century stated that the Lands and Mines director, in making the declaration to acquire the lands, had acted without sufficient ground, unfairly and contrary to the rules of natural justice.
Mayland Century named the director and the Federal Territory land administrator as respondents.
In the application filed by Spirit Domain, also on Feb 20, the company named the FT Lands and Mines director, the Government and MRT Corp as respondents.
Alternatively, Spirit Domain wants the court to issue an order declaring that the decision to acquire the lands is null and void and of no effect.
By The Star
Ireka to finish Viet hospital job by year-end
KUALA LUMPUR: The City International Hospital managed by Ireka Corp Bhd's unit, Ireka Development Management Sdn Bhd, is slated to complete by end-2012.
"Along with economic growth, social healthcare is one of the major concerns in Vietnam.
"Given the increasing demand for quality overseas medical treatment, the park will be the first integrated healthcare development in Vietnam, which will provide a comprehensive healthcare environment from facilities, hi-tech medical equipment to professional medical staff," said President and Chief Executive Officer Lai Voon Hon in a statement today.
The hospital is the first general hospital to be completed within the "Medical City" located in Vietnam’s largest medical hub, the International Hi-Tech Healthcare Park.
The hospital, developed by Hoa Lam-Shangri-La Healthcare Ltd Liability Company, will eventually have other facilities such as laboratories, medical suites, a staff residential area, medical exhibition centre & shopping mall, service apartments, international schools and a residents’ clubhouse.
Ireka’s associate company, Aseana Properties Ltd, holds a majority stake in Hoa Lam-Shangri-La Healthcare Ltd Liability Company.
Currently, the hospital is more than 50 per cent completed, with the bulk of the brick works completed.
Plaster works, mechanical and electrical services and the selection of architectural finishes are ongoing, whilst the selection and purchase of major medical equipment for the hospital were completed recently.
By Bernama
"Along with economic growth, social healthcare is one of the major concerns in Vietnam.
"Given the increasing demand for quality overseas medical treatment, the park will be the first integrated healthcare development in Vietnam, which will provide a comprehensive healthcare environment from facilities, hi-tech medical equipment to professional medical staff," said President and Chief Executive Officer Lai Voon Hon in a statement today.
The hospital is the first general hospital to be completed within the "Medical City" located in Vietnam’s largest medical hub, the International Hi-Tech Healthcare Park.
The hospital, developed by Hoa Lam-Shangri-La Healthcare Ltd Liability Company, will eventually have other facilities such as laboratories, medical suites, a staff residential area, medical exhibition centre & shopping mall, service apartments, international schools and a residents’ clubhouse.
Ireka’s associate company, Aseana Properties Ltd, holds a majority stake in Hoa Lam-Shangri-La Healthcare Ltd Liability Company.
Currently, the hospital is more than 50 per cent completed, with the bulk of the brick works completed.
Plaster works, mechanical and electrical services and the selection of architectural finishes are ongoing, whilst the selection and purchase of major medical equipment for the hospital were completed recently.
By Bernama
PNB remains keen on London
President and group chief executive Tan Sri Hamad Kama Piah Che Othman said the decision to not pursue what could have been PNB's fourth property in London was due to "it not meeting some of our criteria".
"We identified the property and after doing our due diligence, we decided not to buy but this does not mean that we will stop looking for the right investment," he told reporters here yesterday.
A news report on Tuesday said the office building called Woolgate Exchange was to be acquired by PNB for some RM1.3 billion.
Hamad Kama Piah said PNB had spent RM4.88 billion on properties abroad since 2010, including one in Australia and three in London.
PNB's three London properties are One Exchange Square, 90 High Holborn and Milton and Shire House while in Brisbane, it is an office block called Santos Place.
PNB hosted a gathering of the fund manager's group of companies participating in its coming 13th Minggu Saham Amanah Malaysia (MSAM).
MSAM is aimed at educating the public on investment, while encouraging them to participate in the unit trust industry.
To be held in Kota Kinabalu, Sabah, from April 20 to April 28, twelve PNB subsidiaries are taking part along with 38 other participants including regulatory agencies, government agencies, PNB's unit trust agents, companies from Sabah and the media.
Its key partners are Malayan Banking Bhd, Sime Darby Bhd, I&P Bhd and UMW Holdings Bhd.
Others include Chemical Co of Malaysia Bhd, Malaysian Industrial Development Finance Bhd, MNRB Holdings Bhd, NCB Holdings Bhd, Perusahaan Otomobil Kedua Sdn Bhd and Projek Lintasan Kota Holdings Sdn Bhd.
"We are targeting 200,000 visitors this time around and hope to be able to showcase to them (PNB's unit trust investors) the companies we are investing in so that they are aware of where their money goes into," said Hamad Kama Piah.
MSAM 2012 will offer grand prizes to some lucky visitors such as a Ford Fiesta 1.6L (from Sime Darby), a Toyota Hilux from UMW Holdings, and a Perodua Myvi 1.5 Extreme.
By Business Times
Thursday, April 5, 2012
Four Seasons Place KL to open in 2015
News of a Four Seasons being developed in the capital by two tycoons and a sultan first surfaced in 2005. In 2007, some work even began on the site, but the project has yet to see the light of day.
A source told Business Times that some developments can be anticipated within the next three months with completion expected to be three years thereafter.
The Four Seasons Place is being built by Venus Assets Sdn Bhd, a firm controlled by Ipoh-born tycoon Ong Beng Seng, Tan Sri Syed Yusof Syed Nasir and the Sultan of Selangor.
The delay was attributed to the failure of a proposed deal between Venus Assets and national oil corporation Petronas to go through and the project going back to the drawing board.
"The developer is working to ensure this product is worthy of Malaysia's image as an international tourist destination and is in line with the country's target to be a developed nation," the source said.
"The project is not being rushed, so that the end result will be a first-class product," he said.
Since the plans have gone back to the drawing board, talk is that there may even be a possibility of the Four Seasons reverting to the original plans which included two towers.
In a 2009 interview with Business Times, Syed Yusof said the building will be a single 65-storey tower. It was to include 150,000 sq ft of retail component, 150 hotel rooms and 100 serviced apartments. Another 140 serviced apartments would be for sale.
Venus Assets bought the prime 1.05ha site for RM90 million in 2003 from the estate of the late Khoo Teck Puat, the former major shareholder of Standard Chartered plc.
It was reported then that cost of construction for all the components, including land and interior design, was RM1.4 billion and the estimated gross development value (GDV) of the project was RM2.5 billion.
Should the new project have two towers, it would be safe to assume that the GDV could be well above the initial estimation of RM2.5 billion.
By Business Times
Wednesday, April 4, 2012
Property sector continues to be on solid ground
KUALA LUMPUR: The property market would continue to be active this year, supported by various government initiatives under the 10th Malaysia Plan and Budget 2012, said Deputy Finance Minister Datuk Donald Lim.
“Last year, in terms of construction activities, the higher number of new unit starts and building plan approvals signified the confidence of developers and investors,” said Lim at the launch of Malaysia’s Property Market Report 2011.
According to the report, the performance of the residential sub-sector would be sustained, while vacant space in the office and retail sub-sectors is expected to be absorbed as more space is taken up during the progress of the country’s Economic Transformation Programme.
However, Lim also pointed out that the Government was worried about the emergence of a real estate bubble.
“We do not want a United States subprime mortgage crisis in Malaysia. We noted that a lot of foreigners from the Middle East and China are keen on buying properties here,” he said.
Lim said the Government would intervene when property prices were seen to have “shot up too high.”
“As such, measures such as the implementation of the maximum loan-to-value ratio of 70% for the third home and Bank Negara’s responsible lending guidelines were taken.”
According to data on Bank Negara’s website, the amount of loans applied for purchases of residential property increased by 17% year-on-year in the first two months of 2012 to RM26.7bil.
The amount of residential property loans approved during the period was RM12.25bil, which was 2.7% higher compared to a year earlier.
Last year, the property market performed strongly with the value of transactions rising 28.3% to RM137.8bil. Volume rose 14.3% to 430,403 transactions.
The report stated that market activity was led by the residential sub-sector, which had a double-digit expansion of 18.9%.
This was followed by the development land (14.7%), commercial (9.7%), industrial (6.5%) and agricultural (4.6%) sub-sectors.
In terms of value, all sub-sectors registered double-digit growth with two sub-sectors surpassing 50%, namely agricultural (65.4%) and development land (54.8%).
Despite more units launched, the performance of the residential market improved last year. In 2011, there were 49,290 units of new launches which achieved sales of 46.3%, compared with 47,698 units with 45.7% sales in 2010.
Selangor, Johor and Perak offered the most number (51.2% or 25,216 units combined) of new launches in the country.
In terms of market share, the residential sub-sector dominated with 62.7%, followed by the agricultural (19.7%), commercial (10.1%), development land (5.0%) and industrial (2.4%) sub-sectors.
The residential sub-sector also took up a 44.9% share of the transaction value in the market. Last year, there were 269,789 residential property transactions worth RM61.83bil, which was the highest recorded in the last five years.
Selangor retained the lion’s share by capturing 27.9% (75,344 transactions) of the country’s total transactions.
The demand for high-end units priced above RM500,000 had increased, with 21,905 transactions last year (compared with 16,782 transactions in 2010).
“This could be attributed to the increase in affordability level and supported by the ease in borrowing as well as attractive loan packages offered by financial institutions.”
By property type, terraced houses captured 36.6% (98,597 units) of residential transactions, of which about one-third were transacted in Selangor.
As at the end of 2011, there were 4.51 million existing residential units with 584,546 units in the incoming supply.
According to the report, the Malaysian All House Price Index had surged to 156.9 points in the fourth quarter of last year, compared with 147.2 points a year earlier.
By The Star
Malaysia moves to avoid property bubble
Malaysia registers an average 6.6 per cent jump in home prices in the fourth quarter of last year, an official says
KUALA LUMPUR: Malaysia is taking "strict measures" to avoid a US-style subprime mortgage lending crisis, after reporting an average 6.6 per cent jump in home prices in the fourth quarter of last year, an official says.
"The government is worried about property prices causing a bubble, and we don't want banks to over-lend to the property sector," Deputy Finance Minister Datuk Donald Lim said here yesterday.
"We are seeing a lot of foreigners from Middle East and China keen to buy properties in Malaysia."
Housing loan applications jumped 46 per cent in February from a year earlier to RM14.96 billion, according to data on Bank Negara Malaysia (BNM)'s website.
BNM last tightened mortgage lending rules in November, limiting the loan-to-value ratio for people taking third mortgages to buy homes.
Hong Kong and Singapore have also taken steps to rein in the housing markets to tame inflation.
Malaysia has no plans to require banks to hold more capital to support housing loans to reduce risk, BNM governor Tan Sri Dr Zeti Akhtar Aziz said on March 9, when the central bank left borrowing costs unchanged at 3 per cent.
BNM tightened credit card lending rules on March 18, capping limits for lower-income earners as a pre-emptive move to ensure household debts remain "resilient", its deputy governor Nor Shamsiah Mohd Yunus said at the time.
By Bloomberg
KUALA LUMPUR: Malaysia is taking "strict measures" to avoid a US-style subprime mortgage lending crisis, after reporting an average 6.6 per cent jump in home prices in the fourth quarter of last year, an official says.
"The government is worried about property prices causing a bubble, and we don't want banks to over-lend to the property sector," Deputy Finance Minister Datuk Donald Lim said here yesterday.
"We are seeing a lot of foreigners from Middle East and China keen to buy properties in Malaysia."
Housing loan applications jumped 46 per cent in February from a year earlier to RM14.96 billion, according to data on Bank Negara Malaysia (BNM)'s website.
BNM last tightened mortgage lending rules in November, limiting the loan-to-value ratio for people taking third mortgages to buy homes.
Hong Kong and Singapore have also taken steps to rein in the housing markets to tame inflation.
Malaysia has no plans to require banks to hold more capital to support housing loans to reduce risk, BNM governor Tan Sri Dr Zeti Akhtar Aziz said on March 9, when the central bank left borrowing costs unchanged at 3 per cent.
BNM tightened credit card lending rules on March 18, capping limits for lower-income earners as a pre-emptive move to ensure household debts remain "resilient", its deputy governor Nor Shamsiah Mohd Yunus said at the time.
By Bloomberg
MRCB hopes to sell back expressway to Govt
KUALA LUMPUR: Malaysian Resources Corp Bhd (MRCB) is open to selling its Eastern Dispersal Link (EDL) expressway back to the Government following the latter’s decision to review the company’s toll concession mooted in 2008.
“I’m sure the Government have many options to consider, and one of them is to impose a levy on Singaporean vehicles, and the other option, hopefully from our point of view is to buy the EDL off us at market value,” said MRCB chairman Tan Sri Azlan Zainol in a briefing after the company AGM.
He said the cost of the EDL was estimated at around RM1.4bil, and hoped a decision to be made in May.
“We leave the decision to the Government, and we are in constant touch with the authorities to consult and advice,” he said.
Fielding questions: Razeek (left) and Azlan at the briefing.
The 8.1km EDL links the North-South Expressway to the Johor Customs, Immigration and Quarantine Complex, and into Singapore directly at an effective toll rate of RM6.20 per travel.
Based on MRCB’s internal projections of about 60,000 vehicles utilisation rate daily for the EDL, it would generate about RM135.7mil in cash annually for the company with increases in toll charges every few years under the old concession agreement.
“We hope that this will be resolved soon as it will impact the company and collections. We had budgeted to start tolling in May,” he said, adding that the EDL had experienced good traffic response since it opened on Sunday.
Recently, the EDL had drawn controversy when it was reported that MRCB would require motorists travelling to Singapore via the Johor Causeway to pay about five times more than the current toll rate of RM2.90.
On Monday, the Malaysian Highway Authority director-general Datuk Ismail Salleh said vehicles would not be charged toll for now as the Government was still finalising the details.
On company’s prospects this year, Azlan said that it would be a challenging year while trying to maintain its profit at its current level.
“For 2013 onwards, we think our profit would be much better as a lot of the projects that we are currently doing would be completed in 2013. We are also steering the company’s direction towards property development,” he said.
He said the property development business offered better profits compared with construction and engineering. Currently property development contributes about 75% to the company’s profit and 40% to the group’s total revenue.
“We have about RM2.7bil in borrowings based on project financing, and we are prepared to try and chew at what we can.,” he said.
Azlan said MRCB would concentrate in the Klang Valley, as it still deemed the area with growth potential, while also looking at land in Johor and Penang.
Meanwhile chief executive officer Datuk Mohamed Razeek Hussain said the company had three mega projects which would keep it busy for the next three to four years.
“We have at the moment five acres in Brickfields worth RM1.8bil in gross development value (GDV), 27 acres in Setapak worth RM1.7bil in GDV and Penang Sentral, along with a small parcel near Jalan Kia Peng worth RM350mil in GDV,” he said.
By The Star
“I’m sure the Government have many options to consider, and one of them is to impose a levy on Singaporean vehicles, and the other option, hopefully from our point of view is to buy the EDL off us at market value,” said MRCB chairman Tan Sri Azlan Zainol in a briefing after the company AGM.
He said the cost of the EDL was estimated at around RM1.4bil, and hoped a decision to be made in May.
“We leave the decision to the Government, and we are in constant touch with the authorities to consult and advice,” he said.
The 8.1km EDL links the North-South Expressway to the Johor Customs, Immigration and Quarantine Complex, and into Singapore directly at an effective toll rate of RM6.20 per travel.
Based on MRCB’s internal projections of about 60,000 vehicles utilisation rate daily for the EDL, it would generate about RM135.7mil in cash annually for the company with increases in toll charges every few years under the old concession agreement.
“We hope that this will be resolved soon as it will impact the company and collections. We had budgeted to start tolling in May,” he said, adding that the EDL had experienced good traffic response since it opened on Sunday.
Recently, the EDL had drawn controversy when it was reported that MRCB would require motorists travelling to Singapore via the Johor Causeway to pay about five times more than the current toll rate of RM2.90.
On Monday, the Malaysian Highway Authority director-general Datuk Ismail Salleh said vehicles would not be charged toll for now as the Government was still finalising the details.
On company’s prospects this year, Azlan said that it would be a challenging year while trying to maintain its profit at its current level.
“For 2013 onwards, we think our profit would be much better as a lot of the projects that we are currently doing would be completed in 2013. We are also steering the company’s direction towards property development,” he said.
He said the property development business offered better profits compared with construction and engineering. Currently property development contributes about 75% to the company’s profit and 40% to the group’s total revenue.
“We have about RM2.7bil in borrowings based on project financing, and we are prepared to try and chew at what we can.,” he said.
Azlan said MRCB would concentrate in the Klang Valley, as it still deemed the area with growth potential, while also looking at land in Johor and Penang.
Meanwhile chief executive officer Datuk Mohamed Razeek Hussain said the company had three mega projects which would keep it busy for the next three to four years.
“We have at the moment five acres in Brickfields worth RM1.8bil in gross development value (GDV), 27 acres in Setapak worth RM1.7bil in GDV and Penang Sentral, along with a small parcel near Jalan Kia Peng worth RM350mil in GDV,” he said.
By The Star
PNB pulls RM1.3bil bid for London property
LONDON: Investment fund Permodalan Nasional Bhd’s (PNB) plan to buy a London office building let to German bank WestLB for £265mil (RM1.3bil) has fallen through at the eleventh hour.
The 350,000 sq ft Woolgate Exchange building in the City of London financial district was put up for sale after the owner of the property Irish investment manager D2 Private failed to pay a £270mil loan last year.
“Following discussions between the receivers and the purchaser, an agreement to sell and purchase the property was not reached,” Capita Asset Services, which is handling the sale, said in a filing to the Irish stock exchange.
PNB, one of an number of cash-rich overseas investors which have stepped up their pursuit of top quality London properties over the past year, entered exclusive talks for the site in February, a source familiar with the situation told Reuters.
D2 Private bought Woolgate Exchange in 2006 for £325mil. Debt financing was provided by Anglo Irish Bank Corp, now Irish Bank Resolution Corp. Credit Suisse bought the senior tranche of the debt and this is now part of a commercial mortgage backed security known as Cornerstone Titan 20061.
Ratings agency Standard & Poor’s, which rates the Cornerstone CMBS, said on Monday that it understood “the borrower (D2 Private) had recently accepted a purchase offer.”
WestLB, once Germany’s third-largest landesbank, is being wound down after it received billions of euros in state aid during the financial crisis, and has been looking for buyers for its businesses before a June 30 break up deadline. Woolgate Exchange is the bank’s London headquarters.
Overseas investors like PNB have been attracted by the UK capital’s safe haven status against an uncertain global economic outlook. PNB has bought three London office properties since the start of the year, two of which were acquired from German fund KanAm for about £570mil.
By Reuters
The 350,000 sq ft Woolgate Exchange building in the City of London financial district was put up for sale after the owner of the property Irish investment manager D2 Private failed to pay a £270mil loan last year.
“Following discussions between the receivers and the purchaser, an agreement to sell and purchase the property was not reached,” Capita Asset Services, which is handling the sale, said in a filing to the Irish stock exchange.
PNB, one of an number of cash-rich overseas investors which have stepped up their pursuit of top quality London properties over the past year, entered exclusive talks for the site in February, a source familiar with the situation told Reuters.
D2 Private bought Woolgate Exchange in 2006 for £325mil. Debt financing was provided by Anglo Irish Bank Corp, now Irish Bank Resolution Corp. Credit Suisse bought the senior tranche of the debt and this is now part of a commercial mortgage backed security known as Cornerstone Titan 20061.
Ratings agency Standard & Poor’s, which rates the Cornerstone CMBS, said on Monday that it understood “the borrower (D2 Private) had recently accepted a purchase offer.”
WestLB, once Germany’s third-largest landesbank, is being wound down after it received billions of euros in state aid during the financial crisis, and has been looking for buyers for its businesses before a June 30 break up deadline. Woolgate Exchange is the bank’s London headquarters.
Overseas investors like PNB have been attracted by the UK capital’s safe haven status against an uncertain global economic outlook. PNB has bought three London office properties since the start of the year, two of which were acquired from German fund KanAm for about £570mil.
By Reuters
Tuesday, April 3, 2012
Making Kuala Lumpur a great place to live in
The Greater Kuala Lumpur/Klang Valley NKEA 2020 targets are to be in the top 20 most livable cities list and the top 20 in economic growth.
The goals under this NKEA are to be realised through the implementation of nine Entry Point Projects (EPPs) and the two business opportunities. These include improving the city’s attractiveness to foreign multinational companies (MNCs) and foreign talent, putting in place an efficient public transport system and enhancing the ambience of the city by improving its physical environment through various initiatives.
Intensive efforts are ongoing to upgrade the water quality of Kuala Lumpur’s main rivers and beautifying and developing its surroundings via the River of Life EPP, going green through the planting of more trees in the city, developing iconic places within the city and providing comfortable walkways for the pedestrians.
There are also plans to enhance solid waste management and sewerage services for the metropolis, as well as efforts to improve housing opportunities and to vitalise Putrajaya.
It is envisaged that initiatives under the Greater Kuala Lumpur/Klang Valley NKEA would contribute RM190bil in GNI over the next 10 years and create over 300,000 jobs.
Achievements for 2011 have been good, with 16 KPIs meeting targets. Out of these, at least eight KPIs have surpassed targets.
Falling short of expectation were the KPIs for a biogas plant for food waste, improvement of pedestrian walkways, talent attraction programme and the website and portal improvement.
The Government is upping the ante with new critical targets for 2012.
This year’s KPIs include concluding Letters of Intent for 10 MNCs’ operational headquarters relocation in Greater KL/KV; 600 employment generation and 10 branding InvestKL activities.
“For the Returning Expat Programme, the KPI is to have 1,200 expatriates return to Malaysia. The Residence Pass Programme is targeting for 800 approved passes, while the Employment Pass (Category II) intends to approve 300 passes. This year will also see the development of a diaspora database,” the report said.
On infrastructure, the feasibility study for the high-speed rail was due for completion. The Government also aims to have 100% completion of land required for the Sungai Buloh-Kajang My Rapid Transit line, and all elevated civil underground and depot packages are to be awarded, among others.
This year would see completion of the Heritage Trail Route 1 (National Museum to Medan Pasar), Reviving Medan Pasar and Heritage Trail Routes two to four, as well as the upgrading of Masjid Jamek, and land matters, planning approvals and detail design for Malaysia Truly Asia Centre (MTAC).
Also, there would be a 12km upgrade of non-covered pedestrian network system.
In terms of environment protection, the Government expects 15% completion of River Beautification Construction for Phase 1 under the River of Life project, and 30,000 trees to be planted.
The Government also expects a 100% roll-out of Separation at Source Scheme (Household Wastes) in Kuala Lumpur through distribution of bins to landed property; and Issuance of Letter of Approval to successful contractor via Private Public Partnership for the setting up of Food Waste Treatment Plant (Composting or Anaerobic Digestion) for food waste.
In addition, the Government was targeting a 45% construction progress for rationalisation projects of Old Klang Road; 20% sewer rehabilitation projects in Kuala Lumpur, Shah Alam, Subang Jaya and Petaling Jaya; and 18% regionalisation of sewerage treatment Lot 130, Klang.
By The Star
The goals under this NKEA are to be realised through the implementation of nine Entry Point Projects (EPPs) and the two business opportunities. These include improving the city’s attractiveness to foreign multinational companies (MNCs) and foreign talent, putting in place an efficient public transport system and enhancing the ambience of the city by improving its physical environment through various initiatives.
Intensive efforts are ongoing to upgrade the water quality of Kuala Lumpur’s main rivers and beautifying and developing its surroundings via the River of Life EPP, going green through the planting of more trees in the city, developing iconic places within the city and providing comfortable walkways for the pedestrians.
There are also plans to enhance solid waste management and sewerage services for the metropolis, as well as efforts to improve housing opportunities and to vitalise Putrajaya.
It is envisaged that initiatives under the Greater Kuala Lumpur/Klang Valley NKEA would contribute RM190bil in GNI over the next 10 years and create over 300,000 jobs.
Achievements for 2011 have been good, with 16 KPIs meeting targets. Out of these, at least eight KPIs have surpassed targets.
Falling short of expectation were the KPIs for a biogas plant for food waste, improvement of pedestrian walkways, talent attraction programme and the website and portal improvement.
The Government is upping the ante with new critical targets for 2012.
This year’s KPIs include concluding Letters of Intent for 10 MNCs’ operational headquarters relocation in Greater KL/KV; 600 employment generation and 10 branding InvestKL activities.
“For the Returning Expat Programme, the KPI is to have 1,200 expatriates return to Malaysia. The Residence Pass Programme is targeting for 800 approved passes, while the Employment Pass (Category II) intends to approve 300 passes. This year will also see the development of a diaspora database,” the report said.
On infrastructure, the feasibility study for the high-speed rail was due for completion. The Government also aims to have 100% completion of land required for the Sungai Buloh-Kajang My Rapid Transit line, and all elevated civil underground and depot packages are to be awarded, among others.
This year would see completion of the Heritage Trail Route 1 (National Museum to Medan Pasar), Reviving Medan Pasar and Heritage Trail Routes two to four, as well as the upgrading of Masjid Jamek, and land matters, planning approvals and detail design for Malaysia Truly Asia Centre (MTAC).
Also, there would be a 12km upgrade of non-covered pedestrian network system.
In terms of environment protection, the Government expects 15% completion of River Beautification Construction for Phase 1 under the River of Life project, and 30,000 trees to be planted.
The Government also expects a 100% roll-out of Separation at Source Scheme (Household Wastes) in Kuala Lumpur through distribution of bins to landed property; and Issuance of Letter of Approval to successful contractor via Private Public Partnership for the setting up of Food Waste Treatment Plant (Composting or Anaerobic Digestion) for food waste.
In addition, the Government was targeting a 45% construction progress for rationalisation projects of Old Klang Road; 20% sewer rehabilitation projects in Kuala Lumpur, Shah Alam, Subang Jaya and Petaling Jaya; and 18% regionalisation of sewerage treatment Lot 130, Klang.
By The Star
Qinzhou start-up district estimated to cost RM2.6bil
PETALING JAYA: The joint venture of SP Setia Bhd, Rimbunan Hijau Group and Qinzhou Jingu Investment Co Ltd will focus its development at the Qinzhou Industrial Park (QIP) on the start-up district.
Based on a preliminary estimation, the total estimated cost for the start-up district alone is expected to be approximately 5.4 billion yuan or RM2.6bil.
SP Setia said in a filing to Bursa Malaysia that the start-up district spans over 7.87 sq km or 1,945 acres.
Qinzhou Jingu is looking for approval from the Chinese government to allow up to 30% of the commercial and residential land in the start-up district to be swapped for another piece of commercial and residential land.
This swapped land will have an equivalent land value in the more developed Binhai New Town.
The relevant parties will establish the joint venture company in Qinzhou City. It will be named China-Malaysia Qinzhou Industrial Park Investment Co Ltd.
The land swap will allow the joint venture company to gain development access to Binhai New Town, which has a total planned area of 110 sq km and a net development area of 45 sq km.
According to the Bursa filing, Binhai New Town is designed to be an industrial service centre, seaside tourist resort and high-end residential district. Once completed, the expected future population is 500,000 people.
“The proposed development is currently at a very preliminary stage and the total development cost, the expected commencement or completion date of the entire proposed development and the expected profits to be derived from the entire proposed development have yet to be ascertained,” it said.
The total registered capital of the company will be 1.8 billion yuan or RM878.05mil, of which the registered capital to be subscribed by SP Setia is approximately 396.9 million yuan or RM193.6mil. This will be funded through a combination of internal funds and, or bank borrowings.
The actual mix can only be determined later.
The joint venture agreement was formed to develop the China-Malaysia QIP.
By The Star
SP Setia banks on China project
NANJING (China): SP Setia, Malaysia's leading property developer, is expecting its China venture to bring its overseas expansion drive to another level.
SP Setia president and group managing director Tan Sri Liew Kee Sin said he hoped the company could have a meaningful involvement in the development of the newly-launched China-Malaysia Qinzhou Industrial Park (QIP).
SP Setia has teamed up with Rimbunan Hijau Group to form a 45:55 joint venture (JV) called Qinzhou Development (Malaysia) Consortium.
Together, SP Setia and Rimbunan will own a 49 per cent stake in a JV company to be formed with China's Qinzhou Jingu to undertake the QIP project.
The QIP is the third industrial park in China to be developed under the umbrella of government-to-government collaboration after the China-Singapore Suzhou Industrial Park and Tianjin Eco-City.
The QIP was proposed by Chinese Premier Wen Jiabao to Prime Minister Datuk Seri Najib Razak during the Malaysia-China Economic, Trade and Investment Cooperation Forum in Kuala Lumpur a year ago.
Najib and Jiabao jointly officiated at the historical launch of the project on Sunday, heralding a new level of economic cooperation between the two countries.
"The joint venture opportunity has taken the group's overseas expansion plans to another level," said Liew.
"It will further drive us towards growing SP Setia's international footprint beyond Australia, Vietnam and Singapore."
By Business Times
SP Setia president and group managing director Tan Sri Liew Kee Sin said he hoped the company could have a meaningful involvement in the development of the newly-launched China-Malaysia Qinzhou Industrial Park (QIP).
SP Setia has teamed up with Rimbunan Hijau Group to form a 45:55 joint venture (JV) called Qinzhou Development (Malaysia) Consortium.
Together, SP Setia and Rimbunan will own a 49 per cent stake in a JV company to be formed with China's Qinzhou Jingu to undertake the QIP project.
The QIP is the third industrial park in China to be developed under the umbrella of government-to-government collaboration after the China-Singapore Suzhou Industrial Park and Tianjin Eco-City.
The QIP was proposed by Chinese Premier Wen Jiabao to Prime Minister Datuk Seri Najib Razak during the Malaysia-China Economic, Trade and Investment Cooperation Forum in Kuala Lumpur a year ago.
Najib and Jiabao jointly officiated at the historical launch of the project on Sunday, heralding a new level of economic cooperation between the two countries.
"The joint venture opportunity has taken the group's overseas expansion plans to another level," said Liew.
"It will further drive us towards growing SP Setia's international footprint beyond Australia, Vietnam and Singapore."
By Business Times
12 projects set to help boost tourism sector
KUALA LUMPUR: Malaysia is poised to improve its standing as one of the world's top global destinations due to its many tourist attractions.
The country is already the ninth most-visited country in the world and its tourism industry remains a major contributor to gross national income (GNI), foreign exchange earnings and employment.
Tourism industry is the seventh largest contributor to the country's economy with a GNI total of RM37.4 billion last year. It is expected to contribute RM66.7 million to the national GNI by 2020, according to the Economic Transformation Programme (ETP) annual report.
The Tourism National Key Economic Area (NKEA) has identified 12 Entry Point Projects (EPPs) across five themes to achieve its GNI target.
The first theme is affordable luxury shopping such as duty free for wider range of goods, making Bukit Bintang-Kuala Lumpur City Centre as premier shopping district and opening three new premium outlets.
The second theme is family fun which includes the development of an eco-nature resort city in Sabah and developing cruise-related tourism products.
Events, entertainment, spa and sports are the third theme whereby the ministry will target more international events, establish dedicated entertainment zones, develop local expertise and better regulate the spa industry and promote the under-tapped golf tourism in the country.
The fourth theme is business tourism where Malaysia will be established as a leading business tourism destination.
The last theme is nature adventure which poses Malaysia as the pre-eminent global bio-diversity hub.
Tourism NKEA will also focus on enhancing connectivity to priority medium-haul markets such as China, Japan, Australia and India.
By Business Times
Tourism industry is the seventh largest contributor to the country's economy with a GNI total of RM37.4 billion last year. It is expected to contribute RM66.7 million to the national GNI by 2020, according to the Economic Transformation Programme (ETP) annual report.
The Tourism National Key Economic Area (NKEA) has identified 12 Entry Point Projects (EPPs) across five themes to achieve its GNI target.
The first theme is affordable luxury shopping such as duty free for wider range of goods, making Bukit Bintang-Kuala Lumpur City Centre as premier shopping district and opening three new premium outlets.
The second theme is family fun which includes the development of an eco-nature resort city in Sabah and developing cruise-related tourism products.
Events, entertainment, spa and sports are the third theme whereby the ministry will target more international events, establish dedicated entertainment zones, develop local expertise and better regulate the spa industry and promote the under-tapped golf tourism in the country.
The fourth theme is business tourism where Malaysia will be established as a leading business tourism destination.
The last theme is nature adventure which poses Malaysia as the pre-eminent global bio-diversity hub.
Tourism NKEA will also focus on enhancing connectivity to priority medium-haul markets such as China, Japan, Australia and India.
By Business Times
Ministry revives 21,000 homes from 100 nationwide projects
PUTRAJAYA: Twenty-one thousand houses from 100 abandoned schemes throughout the country have been revived and completed.
The ministry managed to settle 100 abandoned housing projects between 2009 and this year, said outgoing Housing and Local Government Ministry secretary-general Datuk Seri Ahmad Kabit.
There are 30,000 units still uncompleted in 67 other abandoned projects.
“I hope the new secretary-general will be more aggressive in dealing with this issue,” he said in his speech to ministry staff when handing over duties to his successor Datuk Arpah Abd Razak here.
Ahmad officially retired from the civil service yesterday, after he clocked out for the last time from a career spanning 36 years.
The 57-year-old, who holds a Masters in Public Administration from the University of Southern California, had served as the ministry’s secretary-general for the past three years.
Previously he had served in various capacities at both federal and state level, including at the Public Services Department, Ministry of Trade and Industry, Information Ministry and the Selangor Road Transport Department.
Arpah, who was Ahmad’s deputy, will take over the post today.
Having joined the civil service in 1979, she holds a Masters in Town and Country Planning from the same university as Ahmad.
By The Star
The ministry managed to settle 100 abandoned housing projects between 2009 and this year, said outgoing Housing and Local Government Ministry secretary-general Datuk Seri Ahmad Kabit.
There are 30,000 units still uncompleted in 67 other abandoned projects.
“I hope the new secretary-general will be more aggressive in dealing with this issue,” he said in his speech to ministry staff when handing over duties to his successor Datuk Arpah Abd Razak here.
Ahmad officially retired from the civil service yesterday, after he clocked out for the last time from a career spanning 36 years.
The 57-year-old, who holds a Masters in Public Administration from the University of Southern California, had served as the ministry’s secretary-general for the past three years.
Previously he had served in various capacities at both federal and state level, including at the Public Services Department, Ministry of Trade and Industry, Information Ministry and the Selangor Road Transport Department.
Arpah, who was Ahmad’s deputy, will take over the post today.
Having joined the civil service in 1979, she holds a Masters in Town and Country Planning from the same university as Ahmad.
By The Star
Goldman Sachs eyes US$3b property debt fund
LONDON: A private equity arm of Goldman Sachs is looking to launch a US$3 billion property debt fund in a bid to take advantage of a growing shortage of real estate financing across the UK and Europe, British newspaper the Times said on Monday.
Real Estate Principal Investment Area (REPIA) is exploring options to create a fund that would provide senior and mezzanine loans to property investors, and will target property lending that is riskier but which would offer higher potential returns, the Times said without citing sources.
Mezzanine debt is commonly used to plug the gap between equity and senior debt, usually in the 60-80 percent loan-to-value band. The fund's structure and make up would be similar to another US$2.6 billion property debt fund that REPIA set up in 2009 to target U.S. property investors, the newspaper said.
Europe's property industry is grappling with a widening debt funding gap, the shortfall between debt needing refinancing and the money available do so, as more banks slash lending to the sector in a bid to comply with incoming solvency regulations.
Property consultancy CBRE Group estimates that there is about 960 billion euros (US$1.3 trillion) of outstanding debt secured across Europe, of which 575 billion must be repaid within the next three years.
Non-bank financiers that have recently launched funds targeting the financing gap include the property units of insurers Prudential Financial and AXA Group while fund manager BlackRock said it was considering making a foray into real estate debt.
Goldman Sachs was not immediately available for comment.
By Reuters
Real Estate Principal Investment Area (REPIA) is exploring options to create a fund that would provide senior and mezzanine loans to property investors, and will target property lending that is riskier but which would offer higher potential returns, the Times said without citing sources.
Mezzanine debt is commonly used to plug the gap between equity and senior debt, usually in the 60-80 percent loan-to-value band. The fund's structure and make up would be similar to another US$2.6 billion property debt fund that REPIA set up in 2009 to target U.S. property investors, the newspaper said.
Europe's property industry is grappling with a widening debt funding gap, the shortfall between debt needing refinancing and the money available do so, as more banks slash lending to the sector in a bid to comply with incoming solvency regulations.
Property consultancy CBRE Group estimates that there is about 960 billion euros (US$1.3 trillion) of outstanding debt secured across Europe, of which 575 billion must be repaid within the next three years.
Non-bank financiers that have recently launched funds targeting the financing gap include the property units of insurers Prudential Financial and AXA Group while fund manager BlackRock said it was considering making a foray into real estate debt.
Goldman Sachs was not immediately available for comment.
By Reuters
Monday, April 2, 2012
I-Berhad continues to seek partners for i-City project
Chief executive officer Datuk Eu Hong Chew told Business Times that the company is talking to several local and foreign firms who are considering co-developing some of the land.
I-City is a knowledge and tourism project, sprawled on 42 hectares. Some 20 per cent of the project has been developed with the rest to be completed over the next 10 years, Eu said.
The project has around 21 high-rise buildings comprising office towers, residences, SOHO blocks, a five-star hotel and serviced apartment-cum-hotel.
It also consists of a one million sq ft mall, a cybercentre, shop offices, retail and several leisure components like snow walk and a theme park.
In December 2011, I-Berhad entered into a 30:70 joint venture with Everbright International China to co-develop 12.5ha in i-City to build the mall, some residences and MSC (Multimedia Super Corridor) offices.
Apart from financing the construction, Everbright would lead a consortium of Chinese companies to set up operations in i-City, as well as promote the properties in China.
I-Berhad is looking for similar deals but Eu declined to say who the company is talking to.
Eu said I-Berhad is in talks with several local and foreign institutional investors who want to buy some of the buildings at i-City, via en bloc sale.
"We will close deals when we get a good price," Eu said.
Eu expects the company's performance to improve from this year, led by its leisure division, which currently generates half of its earnings, and property development.
For the financial year ended December 31 2011, I-Berhad made a pre-tax profit of RM1.84 million on revenues of RM27.3 million.
The stock closed 75 sen last Friday, five sen higher than the previous day's closing.
"The game plan is to continue investing in the leisure components as it is revenue generating and will attract new businesses here and spur demand for residences," Eu said.
I-Berhad is 65 per cent owned by its founder and chairman, Tan Sri Lim Kim Hong, and 18.1 per cent by state-owned investment fund, Permodalan Nasional Bhd.
By Business Times
Glomac still on lookout for land banks in Greater KL
KUALA LUMPUR: Glomac Bhd, which recently acquired two parcels of land in Klang for RM44 million, is still on the lookout for good land banks in the Greater Kuala Lumpur area.
Glomac senior manager for group corporate communications Fara Eliza FD Mansor said the company is always scouting for good areas as its focus is very much on the Greater Kuala Lumpur area.
"We are always on the lookout and recently the company announced the acquisition of two parcels of leasehold land totalling 80ha, adjacent to Bandar Saujana Utama.
"The new land allows Glomac to capitalise on the success of its flagship township and raises the company's total estimated gross development value (GDV) of current and future projects to RM6 billion," she told Business Times, after the launch of Reflection Residences on Saturday.
The 39-storey Reflection Residences in Mutiara Damansara is a freehold serviced apartment project with a GDV of RM270 million.
"We have sold 70 per cent of the units there and the balance are still up for grabs," she added.
Currently, Glomac has a total of 11 ongoing projects, comprising a range of mixed developments in Greater KL and in Johor Baru.
"We are looking into expanding into Iskandar (Malaysia) but that is something that we haven't decided on yet," she said.
Fara added that the group continued to achieve healthy profit growth and its balance sheet is strong, with RM353.5 million in cash as at January 31 this year.
By Business Times
"We are always on the lookout and recently the company announced the acquisition of two parcels of leasehold land totalling 80ha, adjacent to Bandar Saujana Utama.
"The new land allows Glomac to capitalise on the success of its flagship township and raises the company's total estimated gross development value (GDV) of current and future projects to RM6 billion," she told Business Times, after the launch of Reflection Residences on Saturday.
The 39-storey Reflection Residences in Mutiara Damansara is a freehold serviced apartment project with a GDV of RM270 million.
"We have sold 70 per cent of the units there and the balance are still up for grabs," she added.
Currently, Glomac has a total of 11 ongoing projects, comprising a range of mixed developments in Greater KL and in Johor Baru.
"We are looking into expanding into Iskandar (Malaysia) but that is something that we haven't decided on yet," she said.
Fara added that the group continued to achieve healthy profit growth and its balance sheet is strong, with RM353.5 million in cash as at January 31 this year.
By Business Times
S'pore home prices suffer 1st quarterly drop in 3 years
SINGAPORE, April 2 (Reuters) Singapore's private home prices suffered their first quarterly drop in nearly three years as government measures to cool the property market begin to bite at the high end.
According to advance estimates from the Urban Redevelopment Authority (URA) on Monday, private home prices fell 0.1 percent in JanuaryMarch from the last three months of 2011. It was the first decline since the second quarter of 2009.
Prices of nonlanded private residential properties in the core central region fell by 0.9 percent, reflecting weakness in the high end of the property market. The mass market remained healthy as prices of apartments outside the central region rose by 1.2 percent from the preceding quarter.
"I don't think this decline is sufficient to say policies put in place have worked as the sheer volume of sales warrants some concerns," said Wilson Liew, an analyst at Maybank Kim Eng.
He said the fall in private home prices was partly due to most of the launches in the first quarter being cheaper mass market projects. Liew expected prices to soften further towards the end of the year.
Singapore is trying to cool home prices amid fears of a property bubble and public discontent over soaring prices.
The government last introduced measures to curb residential property prices in December, including a requirement that foreigners who are not permanent residents pay an additional stamp duty equal to 10 percent of the property value.
But while prices have softened at the high end of the market, transaction volumes remain healthy, especially in the mass market.
Property blue chips reacted calmly to the news, with Southeast Asia's biggest developer, CapitaLand, slipping 0.3 percent and City Developments declining about 1 percent percent.
Among secondliners, Wing Tai Holdings lost 0.4 percent while SC Global dropped 0.9 percent. The benchmark Straits Times Index gained less than 0.1 percent.
"The risk of having another round of measures is higher than it was one, two months back," Png Poh Soon, head of consultancy and research at Knight Frank, said last week.
"Sales transactions are going up, homes are getting smaller, the psf (per square foot) rate is going up." Png predicted prices for highend prime residential units may fall up to 5 percent this year, he said.
Separately, an index of resale prices for governmentbuilt HDB apartments showed prices edged up 0.6 percent in the first quarter from the preceding three months, slowing from a rise of 1.7 percent in the fourth quarter.
By The Star
According to advance estimates from the Urban Redevelopment Authority (URA) on Monday, private home prices fell 0.1 percent in JanuaryMarch from the last three months of 2011. It was the first decline since the second quarter of 2009.
Prices of nonlanded private residential properties in the core central region fell by 0.9 percent, reflecting weakness in the high end of the property market. The mass market remained healthy as prices of apartments outside the central region rose by 1.2 percent from the preceding quarter.
"I don't think this decline is sufficient to say policies put in place have worked as the sheer volume of sales warrants some concerns," said Wilson Liew, an analyst at Maybank Kim Eng.
He said the fall in private home prices was partly due to most of the launches in the first quarter being cheaper mass market projects. Liew expected prices to soften further towards the end of the year.
Singapore is trying to cool home prices amid fears of a property bubble and public discontent over soaring prices.
The government last introduced measures to curb residential property prices in December, including a requirement that foreigners who are not permanent residents pay an additional stamp duty equal to 10 percent of the property value.
But while prices have softened at the high end of the market, transaction volumes remain healthy, especially in the mass market.
Property blue chips reacted calmly to the news, with Southeast Asia's biggest developer, CapitaLand, slipping 0.3 percent and City Developments declining about 1 percent percent.
Among secondliners, Wing Tai Holdings lost 0.4 percent while SC Global dropped 0.9 percent. The benchmark Straits Times Index gained less than 0.1 percent.
"The risk of having another round of measures is higher than it was one, two months back," Png Poh Soon, head of consultancy and research at Knight Frank, said last week.
"Sales transactions are going up, homes are getting smaller, the psf (per square foot) rate is going up." Png predicted prices for highend prime residential units may fall up to 5 percent this year, he said.
Separately, an index of resale prices for governmentbuilt HDB apartments showed prices edged up 0.6 percent in the first quarter from the preceding three months, slowing from a rise of 1.7 percent in the fourth quarter.
By The Star
Saturday, March 31, 2012
Banking on vibrant Sabah market
Mah Sing's first Sabah venture to use concepts from the group's Icon City
Property developer Mah Sing Group Bhd's managing director and chief executive Tan Sri Leong Hoy Kum is excited about the group's first property venture in Sabah.
“With our prime and very visible location in Kota Kinabalu's central business district (CBD), coupled with our planned offerings which meet market demand, we are very excited about the prospects of this new market,” he told StarBizWeek.
On March 26, Mah Sing had told Bursa Malaysia its wholly-owned subsidiary Capitol Avenue Development Sdn Bhd had entered into an agreement with Paduan Hebat Sdn Bhd for the proposed joint development of 4.26 acres of prime leasehold commercial land in the Sembulan District of Kota Kinabalu.
The land is located along the coastal highway in the CBD.
Paduan Hebat agrees with Capitol Avenue to jointly develop the land for RM39mil or about RM210 per sq ft.
Capitol Avenue was also granted an exclusive option to jointly develop with Paduan Hebat 4.408 acres at RM216 per sq ft or about RM41.5mil.
The option is exercisable by Capitol Avenue within six months.
According to Mah Sing's statement, the land is located opposite the five-star Sutera Harbour Resort and KK Times Square, and has direct road frontage to the Coastal Highway, one of Kota Kinabalu's main thoroughfares.
Other landmarks nearby include the Sabah Umno building, Ming Garden Hotel and Asia City.
The land will be the southern entry point to the CBD from the Kota Kinabalu International Airport, which is only 3.9km away.
The estimated gross development value is RM360mil for the 4.26 acres and RM470mil for the 4.408-acre option land.
Tentatively called Sutera Avenue, the proposed joint development will comprise multi-storey shop offices fronting the Coastal Highway with street mall retail lots and serviced apartments.
The joint development is expected to commence by the first half of 2013, and the 4.26 acres and 4.408-acre option land are expected to be developed over five years.
Mah Sing says the shop-offices with generous lot sizes will incorporate a new and unique concept (inspired by Mah Sing's 30 Jewels and Gourmet Street shops in its flagship Icon City project in Petaling Jaya) that will appeal to business owners, investors and future tenants.
The retail units will be designed for food and beverage outlets, and a street mall retail concept, in synergy with the shop-offices.
According to Mah Sing, demand for the development will result from the vibrancy of Sabah's economy which has benefited from the wealth of natural resources including oil palm, timber and oil and gas.
It also notes that there is a high population base, as Kota Kinabalu together with the surrounding towns of Penampang, Tuaran and Kota Belud has a population of about 800,000.
There is also a strong tourist trade, and Leong notes. “Kota Kinabalu is a premier tourist destination and is projecting about 2.75 million tourist arrivals in 2012, after attracting more than 2.63 million tourists in 2011. Close to 850,000 international tourists visited Sabah in 2011, with more than 300,000 from South Korea, Hong Kong, Japan, Taiwan, China, Macau and Singapore. More than half of Sabah's international tourists are repeat visitors, with close to 80% of them paying for accommodation during their travel. With their intimate knowledge of the region and frequency of their visits, we believe these tourists are also our potential investors.”
According to a report by consultancy CH Williams Talhar & Wong Sdn Bhd (WTW), major condominium developments launched in Kota Kinabalu's CBD have seen new benchmark prices.
Projects launched last year included 441 units of The Loft @ The Mall, priced from RM650 to RM820 per sq ft, and 333 units of Jesselton Residences, priced from RM630 to RM930 per sq ft.
“Also, 2011 saw the completion of condominums Alam Damai, Peak Vista and Hartamas Heights. Alam Damai, which was previously launched at RM230 to RM300 per sq ft, has reached RM400 per sq ft and above in the secondary market,” says the WTW report.
In addition to increasing land costs and scarcer choice development lands, the hype on condominiums is also spurred by the favourable economic climate backed by earnings from good palm oil prices over the last few years.
The report also notes that the existing supply of purpose-built office space in Kota Kinabalu currently enjoys high occupancy rates of 91% due to the lack of new supply and the conversion of some office buildings to hotels in the last one to two years.
Rents and values are rather stable although there are some upward movements in rents and values for prime and newer office buildings within the CBD.
“Overall, yields are estimated to be around 5%.”
“We are opened to landbanking or joint venture opportunities that fit our business model and have been scouting for land in Sabah, especially in Kota Kinabalu for some time. As an established property developer with 38 projects in Greater Kuala Lumpur, Penang, Johor Baru and now, Sabah, we have a wealth of know-how and a broad base of good consultants, both local and international, who can help to add value to the project,” says Leong.
“We want to leverage on our experience and bring in good architecture, new lifestyle concepts and design that make property management easier, thus creating value for the property.”
Leong also points out that Mah Sing Group's land consideration in the Sabah venture was quite reasonable.
“Land in nearby KK Times Square is being transacted at RM288 per sq ft. Certain suburbs have land transacted at RM150 to RM160 per sq ft on average, while current asking prices (for land in the suburbs examples like Likas and Tuaran) are touching RM200 per sq ft.”
He also points out that the land consideration is less than 10% of the gross development value of Sutera Avenue, which is estimated at a combined RM830mil.
“There is no other available land along the Coastal Highway/CBD which is so prime. All the other lands are already developed or being developed. Mah Sing will get to develop nett land as the surrounding areas are built up, and infrastructure is ready.”
(With gross land, land area has to be allocated for roads, infrastructure, open space, setbacks and land to be surrendered back to government [if required]). This means about 30% land area can be saved when the nett land is developed. In other words, the developer has 30% more saleable land area).
Leong also says the Sabah venture fits well into the company's quick turnaround strategy.
“We can launch the project quickly as the location is matured and infrastructure is ready. Mah Sing intends to start registration of interest by the third quarter of 2012.”
By The Star
Good response to I&P’s landed property project in Temasya Glenmarie
PROPERTY developer I&P Group Sdn Bhd has recorded strong take-up rates for its recent launch of freehold landed residential homes in Shah Alam, latching on the scarcity of new landed residential properties being brought to the market.
Some observers has described the buying response to the launch as “overwhelming.”
In the last two weeks of March, the group has launched 154 units of Citra double-storey superlink and 60 units of Anggun double-storey semi-detached homes at the 200-acre Temasya Glenmarie mixed development.
About 90% of Citra has been sold, while Anggun recorded 100% take-up rate.
Property consultants tell StarBizWeek that the strong response to the recent Temasya Glenmarie launch was not surprising, in view of the limited supply of new landed-residential units in “hot spots” within the Klang Valley.
Temasya Glenmarie, which has an estimated GDV of RM2.4bil, is located 37km west of Kuala Lumpur and is within close proximity to Petaling Jaya, Kelana Jaya and Subang Jaya.
“Some buyers have bought for their own use, while others would be looking at obtaining decent capital appreciation,” says KGV International Property Consultants director Anthony Chua.
“For the next 12 to 18 months, we still see strong demand for new launches of landed residential units in the Klang Valley, depending on the type of property and location,” says Chua.
A bank-backed property analyst concurs, and points out that Temasya Glenmarie appealed to well-heeled buyers.
“There has been very limited supply of new landed units in that area.”
However, he points out that it was not known as to how many of the sales and purchase agreements (S&Ps) signed would translate into actual sales, as buyers would still need to get approvals for loans.
“In the recent past, about 80% of the S&Ps signed during launches of new properties would be converted into actual sales. But if you look at the national mortgage loan approval data, we undertand that as of end-January, it was a bit weaker.”
The analyst also points out that despite credit-tightening measures as a result of Bank Negara's responsible lending guidelines, there was still a situation of high liquidity in the market.
Effective this year, banks have started using net income instead of gross income to calculate the debt service ratio for loans.
“Interest rates are still low, and qualified property buyers still have relatively easy access to financing. Thus, we have an asset bubble situation, where long queues of buyers are seen at new property launches.”
In his opinion, the current situation was not healthy as the credit-tightening measures might penalise many genuine property buyers who were buying for their own use.
“At this time, well-heeled people do not have many avenues to invest their money. So they keep investing in property.”
The Citra and Anggun units have total gross development values (GDV) of RM215.2mil and RM145mil respectively.
The Citra units come in two types. Type 2A has a built-up ranging from 2,839 sq ft to 4,160 sq ft and priced from RM975,888 to RM1.7mil.
Citra type 2B has a built-up ranging from 4,839 sq ft to 6,220 sq ft and are priced from RM1.6mil to RM2.7mil.
Meanwhile, the Anggun double-storey semi-detached homes have a built-up about 4,000 sq ft and are priced between RM2.34mil and RM3.55mil.
The homes are expected to be completed in March 2014.
I&P Group says that the 200-acre Temasya Glenmarie had a tagline of “Space to Live. Live with Space”, and all units come with large built-up areas.
“The township comes with a standard 100-ft wide road frontage and 60-ft wide beautifully-landscaped back roads,” states I&P Group.
Nearby amenities include the Empire Shopping Gallery, Subang Parade shopping centre, Subang Jaya KTM Komuter station as well as Glenmarie Golf & Country Club, Saujana Golf & Country Club and the Holiday Inn Glenmarie.
Temasya Glenmarie is also accessible via major highways like the Federal Highway, North Klang Valley Expressway, New Pantai Expressway, North-South Central Link and Guthrie Corridor Expressway.
By The Star
MBSB eyes RM500m loan approvals
Its chief executive officer (CEO) Datuk Ahmad Zaini Othman said if the reception towards the scheme, which is aimed at first-time home buyers, was good, MBSB would increase its target to up to RM1 billion.
"We hope this will provide relief to the targeted group, who are mainly newcomers to the workforce and facing challenge of rising costs of living and properties in the country.
"This scheme is definitely in support of the government's call and Prime Minister Datuk Seri Najib Razak's aspiration to promote home ownership among younger generation in Malaysia," he told reporters after launching the My First Home Scheme campaign here yesterday.
Ahmad Zaini said the scheme was designed to allow eligible Malaysians under 35 years old to buy their first house up to a ceiling price of RM500,000 and at a 100 per cent margin of financing, offering an exemption of the normal 10 per cent down payment.
On another matter, Ahmad Zaini said MBSB was on track to establish itself as a full-fledged development bank.
"For the past three years, we have been closing some important gaps. We need certain approvals from Bank Negara Malaysia and shareholders' endorsement to move on.
"This may be realised this year or even next year. Even if you look at our products, we are offering financial products similar to banks.
"The gaps are very small now. We will continue to push our efforts to convince the shareholders, the central bank and the authorities," he added.
Ahmad Zaini also said that MBSB was planning to open seven to eight more branches nationwide this year from 36 currently.
By Business Times
Friday, March 30, 2012
UEM Land to launch Nusajaya Gateway this year
SINGAPORE: UEM Land Holdings Bhd will be launching its new multi-billion ringgit integrated mixed development project known as Nusajaya Gateway this year.
Managing director and chief executive officer Datuk Wan Abdullah Wan Ibrahim said the 1,821 ha parcel would be the last “remaining big fat land” slated for development in Nusajaya.
He said the company had presented the development plan to Johor Mentri Besar Datuk Abdul Gani Othman and the state planning unit and that the Johor government had given the nod the the project.
“The development will keep us busy for the next 25 years with an estimated gross development value (GDV) of about RM18bil as of to date,'' said Wan Abdullah.
He was speaking at a press conference on the opening of the UEM Land Property Gallery in Heritage Place here yesterday.
Wan Abdullah said however, the company would review the GDV from time to time.
He added that it would probably be higher than the estimated figure in years to come.
He said the land was located just few metres away from the Sultan Abu Bakar Custom, Immigration and Quarantine (CIQ) Complex at Tanjung Kupang in Gelang Patah.
Wan Abdullah said the land was divided into two parts with the large parcel located on the left side of the CIQ for motorists coming from Tuas in Singapore and the other parcel was on the right side of the complex.
“We have identified several catalytic projects on the land and these include education, eco-tourism and leisure,'' he said but declined to give details on the other signature developments.
Wan Abdullah added that Nusajaya Gateway's signature development would be different than those at Nusajaya presently but they would be complementing instead of competing with each other.
He said the development would comprise of residential and commercial properties with low and high-density living and that focus would be given on preserving the area as it is located near to mangrove area of Ramsar site.
Meanwhile, a senior official with UEM Land told StarBiz that the company was currently talking with several local and foreign investors who had expressed their interest in the project.
“By having joint-venture with other parties, it will help to fast track the development as they could bank on each other strength in undertaking the project,'' said the official. The official added that Nusajaya Gateway's close proximity to the Second Link Crossing and Tuas checkpoint would be an added advantage in marketing the project for Singaporeans and foreigners living in the republic.
By The Star
UMLand plans RM1.4b projects
UMLand director Datuk Syed Ahmad Khalid Syed Mohammed said construction on the mixed development project in Medini, Iskandar, would start soon.
It is targeting local and foreign investors.
"Under phase one, we plan to build commercial properties such as hotel, serviced apartments and retail buildings," Syed Ahmad told reporters here yesterday after inking the deal with Iskandar Investment Bhd.
The latter was represented by its president and chief executive officer Datuk Syed Mohamed Syed Ibrahim.
Syed Ahmad said the company still negotiating with Iskandar on the land size that it could buy for the project.
UMLand chief operating officer Lim Eng Kuan said the proposed investment could boost Medini's attractiveness as an investment hotspot as well as complement its Bandar Seri Alam flagship project within the Iskandar region.
He added UMLand had already bought several parcels of land in the Iskandar region measuring 404.6ha, earmarked for industrial, commercial and residential development.
This will ensure the continuity and growth in the future earnings for the group.
Medini is located within the Nusajaya development zone, which is one of the five flagship developments of Iskandar, touted to be the country's engine of growth in the southern region.
Comprising an area of 902.8ha, Medini is one of Nusajaya's eight catalyst developments.
Others are Johor's new administrative centre, Puteri Harbour, a southern industrial and logistics cluster, Afiat Healthpark, Educity, an international resort and Nusajaya residences.
By Business Times
UMLand eyes Medini
Developer to hold negotiations with IIB on investments in Iskandar
PETALING JAYA: United Malayan Land Bhd (UMLand) will hold negotiations with Iskandar Investment Bhd (IIB) about investments in Medini, Iskandar Malaysia.
The developer said in a filing with Bursa Malaysia yesterday that it had entered into a collaboration agreement with IIB to talk about its proposed investments in the flagship project. Located in the Nusajaya development zone, Medini is one of the five flagship developments and part of the eight catalyst developments of Iskandar Malaysia, in addition to Johor State New Administration Centre, Puteri Harbour, Southern Industrial and Logistic Cluster, Afiat Healthpark, EduCity, International Destination Resort and Nusajaya Residences.
Syed Mohamed: Medini is well positioned to become the central business district in Nusajaya.
IIB president and chief executive Datuk Syed Mohamed Syed Ibrahim said in a press statement that the 2,230-acre Medini is well-positioned and on track to become the central business district of Nusajaya.
“The proposed investment by UMLand, one of the renowned property developers in the local real estate industry, does not only reflect the attractiveness of Medini as an investment hot spot but will add a new dimension to the vibrancy of the lifestyle development,” he said.
UMLand chief operating officer Lim Eng Kuan said that UMLand had been a major player in the Johor property industry since 1990, starting with its first development Bandar Seri Alam.
“Over the years, the group has made concerted efforts in collaboration with the state government and has seeded vast infrastructure and amenities allowing the group to spread its wings further in Johor.
“This can be seen in the group's strong presence in the region with projects in four out of five flagship zones of Iskandar Malaysia,” he said, adding that the group had also acquired several parcels of land amounting to 1,000 acres in the Iskandar region, earmarked for industrial, commercial and residential development.
It was recently reported that Medini's Arab investors would look to dispose of their land over time to other developers.
By The Star
PETALING JAYA: United Malayan Land Bhd (UMLand) will hold negotiations with Iskandar Investment Bhd (IIB) about investments in Medini, Iskandar Malaysia.
The developer said in a filing with Bursa Malaysia yesterday that it had entered into a collaboration agreement with IIB to talk about its proposed investments in the flagship project. Located in the Nusajaya development zone, Medini is one of the five flagship developments and part of the eight catalyst developments of Iskandar Malaysia, in addition to Johor State New Administration Centre, Puteri Harbour, Southern Industrial and Logistic Cluster, Afiat Healthpark, EduCity, International Destination Resort and Nusajaya Residences.
IIB president and chief executive Datuk Syed Mohamed Syed Ibrahim said in a press statement that the 2,230-acre Medini is well-positioned and on track to become the central business district of Nusajaya.
“The proposed investment by UMLand, one of the renowned property developers in the local real estate industry, does not only reflect the attractiveness of Medini as an investment hot spot but will add a new dimension to the vibrancy of the lifestyle development,” he said.
UMLand chief operating officer Lim Eng Kuan said that UMLand had been a major player in the Johor property industry since 1990, starting with its first development Bandar Seri Alam.
“Over the years, the group has made concerted efforts in collaboration with the state government and has seeded vast infrastructure and amenities allowing the group to spread its wings further in Johor.
“This can be seen in the group's strong presence in the region with projects in four out of five flagship zones of Iskandar Malaysia,” he said, adding that the group had also acquired several parcels of land amounting to 1,000 acres in the Iskandar region, earmarked for industrial, commercial and residential development.
It was recently reported that Medini's Arab investors would look to dispose of their land over time to other developers.
By The Star
Sime targets RM2.4b sales
SIME Darby Bhd is targeting RM2.4 billion gross sales for the various projects it has in 10 townships for the financial year ending June 20 2012.
Sime Darby Property managing director Datuk Wahab Maskan said the company has already made RM1.2 billion sales in the first half of the financial year.
"We are on track to meet this target," he said after the launch of Sime Darby Property's latest property campaign called "Lifestyle Collection", a showcase of its residential and commercial properties in and around Greater Kuala Lumpur area.
However, in terms of overall contribution to the Sime Darby group's revenue, it will still be maintained at about 15 per cent like in the last financial year, Wahab said.
He said the "Lifestyle Collection" features 1,800 landed and strata properties which include top- selling and newly launched units as well as planned units.
The properties are located in Sime Darby Property's 10 townships in Klang Valley and Nilai in Negri Sembilan which range from the cheapest residential unit in Nilai at RM431,000 to over RM1 million.
Wahab, who is also Sime Darby group chief operating officer, said the conglomerate's property unit is still doing well despite the little consolidation in the luxury segment of the property market.
"It is a bit challenging in the high-end market but we believe it is still reasonably strong, especially in the Greater Kuala Lumpur and Klang Valley areas," he said.
Wahab added that the company's properties priced between RM1 million and RM2 million are still marketable.
"(Properties) above RM2 million may face challenges to sell but we do not have many of those."
On the affordable housing market, he said depending on the approval from authorities, Sime Darby Property can build between 4,000 and 5,000 units a year for five years beginning next year.
"We will build our own units and we can also collaborate with the government's programmes," Wahab said.
He said Sime Darby Property has also plans to look out for property deals in places it has operations like Singapore, London and Australia.
Wahab said in Singapore the company is now working out one or two deals that could be the redevelopment of some old properties or a joint venture with local parties there.
He said Sime Darby Property, which has a total landbank of 14,800ha, is always looking for more local and foreign local acquisitions.
Meanwhile, Wahab said the "Lifestyle Collection" campaign will start today until April 14 at its property gallery in Ara Damansara. From April 14 to April 30, the public can view the products at the respective sales galleries of the specific properties.
Some benefits buyers can enjoy during the period include low initial payment, cash incentives up to RM10,000 and waived stamp duties and legal fees.
He also said properties developed by Sime Darby have high appreciative yields of about 15 per cent a year.
By Business Times
Sime Darby Property managing director Datuk Wahab Maskan said the company has already made RM1.2 billion sales in the first half of the financial year.
"We are on track to meet this target," he said after the launch of Sime Darby Property's latest property campaign called "Lifestyle Collection", a showcase of its residential and commercial properties in and around Greater Kuala Lumpur area.
However, in terms of overall contribution to the Sime Darby group's revenue, it will still be maintained at about 15 per cent like in the last financial year, Wahab said.
He said the "Lifestyle Collection" features 1,800 landed and strata properties which include top- selling and newly launched units as well as planned units.
The properties are located in Sime Darby Property's 10 townships in Klang Valley and Nilai in Negri Sembilan which range from the cheapest residential unit in Nilai at RM431,000 to over RM1 million.
Wahab, who is also Sime Darby group chief operating officer, said the conglomerate's property unit is still doing well despite the little consolidation in the luxury segment of the property market.
"It is a bit challenging in the high-end market but we believe it is still reasonably strong, especially in the Greater Kuala Lumpur and Klang Valley areas," he said.
Wahab added that the company's properties priced between RM1 million and RM2 million are still marketable.
"(Properties) above RM2 million may face challenges to sell but we do not have many of those."
On the affordable housing market, he said depending on the approval from authorities, Sime Darby Property can build between 4,000 and 5,000 units a year for five years beginning next year.
"We will build our own units and we can also collaborate with the government's programmes," Wahab said.
He said Sime Darby Property has also plans to look out for property deals in places it has operations like Singapore, London and Australia.
Wahab said in Singapore the company is now working out one or two deals that could be the redevelopment of some old properties or a joint venture with local parties there.
He said Sime Darby Property, which has a total landbank of 14,800ha, is always looking for more local and foreign local acquisitions.
Meanwhile, Wahab said the "Lifestyle Collection" campaign will start today until April 14 at its property gallery in Ara Damansara. From April 14 to April 30, the public can view the products at the respective sales galleries of the specific properties.
Some benefits buyers can enjoy during the period include low initial payment, cash incentives up to RM10,000 and waived stamp duties and legal fees.
He also said properties developed by Sime Darby have high appreciative yields of about 15 per cent a year.
By Business Times
Oriental in project buy-back
PETALING JAYA: Oriental Pearl City Properties Sdn Bhd, a subsidiary of Malaysia Pacific Corp Bhd (MPCorp), will pay for the RM110.8mil buy-back of AmanahRaya Development Sdn Bhd's (ADSB) stake in a development project both parties had earlier agreed to via internal resources, loans or “other strategic investors.”
Ch’ng says any new investors will be decided by MPCorp without the restriction of seeking mutual consent from ADSB
ADSB has since exercised its rights to sell its investment in Johor's LakeHill Resort Development Sdn Bhd where it had a 22% stake, and Oriental, the remaining 78%.
MPCorp chief executive officer Datuk Bill Ch'ng told StarBiz that Oriental would purchase ADSB's stake and that the new investors, if any, would be decided by MPCorp, without the restriction of seeking mutual consent from ADSB.
In August 2008, a joint-venture agreement was entered into between ADSB and property firm MPCorp's wholly-owned Oriental whereby Oriental had granted a put option to ADSB to exercise its rights to sell its entire investment of 22% in LakeHill Resort Development to MPCorp on or before the expiry of the option period on Jan 31 this year.
The expiry date of the option period was then extended to Wednesday.
On Monday, the company said ADSB had given notice that it was exercising the put option granted to it and that Oriental was to purchase ADSB's participation in the joint-venture project.
The put option price of RM110.8mil shall be paid within a period of 60 days from March 26, the company told Bursa Malaysia.
It added that it was now at liberty and sole discretion to negotiate with other new strategic partner(s) of its choice.
No details were given as to why ADSB wanted to end the relationship.
StarBiz queries to ADSB were not answered by press time.
In explaining the termination of the relationship, Ch'ng said: “We understand Amanah Raya Bhd, of which ADSB is a subsidiary, is presently being transformed into holding the exclusive role of a trustee' company and shall no longer be involved in property development projects.”
The exercise of its option was both mutually satisfactory and friendly, he added.
LakeHill Resort Development, according to reports, is currently developing Aptec City on a 638-acre piece of land in Iskandar Malaysia under its wholly-owned unit, Asia Pacific Trade & Expo City Sdn Bhd.
Upon its completion in eight years' time, Aptec City will reportedly be MPCorp's jewel in the crown.
As at Dec 31, loss-making MP Corp had cash and cash equivalents of RM1.6mil. Notably, its total assets stood at RM511.1mil while liabilities totalled RM125.3mil.
By The Star
ADSB has since exercised its rights to sell its investment in Johor's LakeHill Resort Development Sdn Bhd where it had a 22% stake, and Oriental, the remaining 78%.
MPCorp chief executive officer Datuk Bill Ch'ng told StarBiz that Oriental would purchase ADSB's stake and that the new investors, if any, would be decided by MPCorp, without the restriction of seeking mutual consent from ADSB.
In August 2008, a joint-venture agreement was entered into between ADSB and property firm MPCorp's wholly-owned Oriental whereby Oriental had granted a put option to ADSB to exercise its rights to sell its entire investment of 22% in LakeHill Resort Development to MPCorp on or before the expiry of the option period on Jan 31 this year.
The expiry date of the option period was then extended to Wednesday.
On Monday, the company said ADSB had given notice that it was exercising the put option granted to it and that Oriental was to purchase ADSB's participation in the joint-venture project.
The put option price of RM110.8mil shall be paid within a period of 60 days from March 26, the company told Bursa Malaysia.
It added that it was now at liberty and sole discretion to negotiate with other new strategic partner(s) of its choice.
No details were given as to why ADSB wanted to end the relationship.
StarBiz queries to ADSB were not answered by press time.
In explaining the termination of the relationship, Ch'ng said: “We understand Amanah Raya Bhd, of which ADSB is a subsidiary, is presently being transformed into holding the exclusive role of a trustee' company and shall no longer be involved in property development projects.”
The exercise of its option was both mutually satisfactory and friendly, he added.
LakeHill Resort Development, according to reports, is currently developing Aptec City on a 638-acre piece of land in Iskandar Malaysia under its wholly-owned unit, Asia Pacific Trade & Expo City Sdn Bhd.
Upon its completion in eight years' time, Aptec City will reportedly be MPCorp's jewel in the crown.
As at Dec 31, loss-making MP Corp had cash and cash equivalents of RM1.6mil. Notably, its total assets stood at RM511.1mil while liabilities totalled RM125.3mil.
By The Star
Crescendo posts higher profit of RM88m
Crescendo Corp Bhd registered a pre-tax profit of RM88.062 million for its financial year ended Jan 31, 2012, up from RM50.766 million in the previous year.
Revenue for the year rose to RM290.424 million from RM215.225 million a year ago.
In a filing to Bursa Malaysia today, the company said the significant increase in revenue was mainly attributed to higher sales in industrial properties.
"The substantial increase in pre-tax profit was mainly contributed by higher sales as well as improved margins from industrial properties," it added.
For the fiscal fourth quarter, Crescendo posted a pre-tax profit of RM23.18 million, up from RM16.122 million in the corresponding quarter previously.
Revenue for the three-months period rose to RM70.610 million from RM56.706 million.
Moving forward, the construction and property firm said it had total unbilled sales brought forward and new locked-in sales of RM124 million but it expected market condition to be challenging in the near to medium term.
"Nevertheless, demand for property in Johor is expected to be least affected in view of the enhanced bilateral collaborations between Iskandar Malaysia and Singapore recently.
"The group expects industrial property sales to be the main profit contributor but it will also start to launch residential houses in Bandar Cemerlang in the 2013 financial year," the company said.
By Bernama
Revenue for the year rose to RM290.424 million from RM215.225 million a year ago.
In a filing to Bursa Malaysia today, the company said the significant increase in revenue was mainly attributed to higher sales in industrial properties.
"The substantial increase in pre-tax profit was mainly contributed by higher sales as well as improved margins from industrial properties," it added.
For the fiscal fourth quarter, Crescendo posted a pre-tax profit of RM23.18 million, up from RM16.122 million in the corresponding quarter previously.
Revenue for the three-months period rose to RM70.610 million from RM56.706 million.
Moving forward, the construction and property firm said it had total unbilled sales brought forward and new locked-in sales of RM124 million but it expected market condition to be challenging in the near to medium term.
"Nevertheless, demand for property in Johor is expected to be least affected in view of the enhanced bilateral collaborations between Iskandar Malaysia and Singapore recently.
"The group expects industrial property sales to be the main profit contributor but it will also start to launch residential houses in Bandar Cemerlang in the 2013 financial year," the company said.
By Bernama
Selangor Properties unit gets notices of land acquisition
KUALA LUMPUR: Selangor Properties Bhd subsidiary Bungsar Hill Holdings Sdn Bhd (BHH) has received notices of acquisition from Mass Rapid Transit Corp Sdn Bhd (MRT Corp).
In a filing with Bursa Malaysia, Selangor Properties said that BHH received the notices of acquisition in the form of Form E and Form F under the Land Acquisition Act 1960 from the Government. The proposed acquisition was intended for the Mass Rapid Transit project's Sungai Buloh-Kajang line.
“BHH objected to the proposed acquisition and has filed an application for leave for judicial review for an order of certiorari to quash the notices of acquisition. The said application for leave for judicial review is now fixed for mention by the court on June 21,” it said.
It added that BHH had in the meantime been negotiating with MRT Corp to seek a solution to either reduce and/or avoid the proposed acquisition of the said land.
On Feb 28, BHH and MRT Corp had agreed in principle, via an undertaking letter and points of agreement, that the area for the proposed land acquisition for title no. Geran 58376, Lot 54305 will be reduced; the area for the proposed land acquisition for title no. H.S.(D) 100364, PT 5785 will be reduced; the proposed land acquisition for title no. Geran 70133, Lot 56495 will be withdrawn subject to BHH undertaking to provide the facilities and railway reserve required for the MRT station at Pusat Bandar Damansara to the specifications provided by MRT Corp.
This arrangement provided under the points of agreement is not binding on the parties until a definitive agreement is signed by both the parties.
Following the above arrangements, the land acquisition hearing for the said land has been postponed with no hearing date being fixed yet.
By The Star
In a filing with Bursa Malaysia, Selangor Properties said that BHH received the notices of acquisition in the form of Form E and Form F under the Land Acquisition Act 1960 from the Government. The proposed acquisition was intended for the Mass Rapid Transit project's Sungai Buloh-Kajang line.
“BHH objected to the proposed acquisition and has filed an application for leave for judicial review for an order of certiorari to quash the notices of acquisition. The said application for leave for judicial review is now fixed for mention by the court on June 21,” it said.
It added that BHH had in the meantime been negotiating with MRT Corp to seek a solution to either reduce and/or avoid the proposed acquisition of the said land.
On Feb 28, BHH and MRT Corp had agreed in principle, via an undertaking letter and points of agreement, that the area for the proposed land acquisition for title no. Geran 58376, Lot 54305 will be reduced; the area for the proposed land acquisition for title no. H.S.(D) 100364, PT 5785 will be reduced; the proposed land acquisition for title no. Geran 70133, Lot 56495 will be withdrawn subject to BHH undertaking to provide the facilities and railway reserve required for the MRT station at Pusat Bandar Damansara to the specifications provided by MRT Corp.
This arrangement provided under the points of agreement is not binding on the parties until a definitive agreement is signed by both the parties.
Following the above arrangements, the land acquisition hearing for the said land has been postponed with no hearing date being fixed yet.
By The Star
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