Nilai stirs excitement for Sime Darby

Iluna has a modern architectural design featuring either vertical or horizontal elements. It is the first super-link house development in the Nilai Impian township.

GROWTH activity is spreading. And it is spreading fast into the region south of the Klang Valley Nilai.

As director of Henry Butcher Lim & Long Sdn Bhd Fahariah Abdul Wahab puts it: “While city-centric people may be quick to dismiss Nilai, the reality is that the area has been growing steadily.”

Whether one acknowledges it or not, there is value in Nilai.

Zulkifli: ‘We are looking at the community from around Nilai and Seremban, and employees at KLIA and Putrajaya as well as those from the civil service.’

While prices of landed property within the urban areas of Klang Valley have sky-rocketed, Nilai presents itself as a new place to seek comfortable home-living. And yes, we are talking landed properties here, not small condominiums.

Following the growth corridor's movement towards the south, developments going on at the fringes of Greater KL are picking up pace and Sime Darby Property's (SDP) Nilai Impian.

The township development began in 1997, steered by Negara Properties Bhd before it merged with the SDP group three years ago.

This development is sited on 1,263 acres freehold land, with 41% reserved for residential developments, 29% commercial and 33% industrial developments.

Currently, Nilai Impian is 50% completed with a population of about 5,000 residents. It can accommodate at least 7,000 more people.

The township is partially visible from the North-South Expressway and is accessible via major highways like Elite, SILK and Maju Expressway, PLUS Highway via the Nilai Interchange, KL International Airport (KLIA) Link Road and Kajang-Seremban Highway (LEKAS).

It is one of 10 townships SDP has under its belt and is about 15km away from KLIA and Putrajaya.

SDP head of property Zulkifli Tahmali is positive that things are getting exciting for the township of RM1.4bil gross development value.

He points out that Nilai Impian will be in the middle of mature developments and employment centres all around such as KLIA, Putrajaya, Cyberjaya and other townships.

Job opportunities would come from industrial developments like Bandar Baru Nilai, Nilai 3, Nilai Square, Nilai Industrial Area and Nilai 3 Industrial Area.

Among the education institutions peppered around Nilai Impian are Universiti Sains Islam Malaysia, Nilai University, INTI College, Murni Nursing College, Nilai International School and upcoming boarding school Epsom College.

“With the LEKAS highway providing better access, the area will only become more vibrant.This is the beginning to (what we believe will become a popular) area,” he says.


Zulkifli likens Nilai Impian's potential to SDP's Bukit Jelutong township in Shah Alam.

“When we started Bukit Jelutong, the Guthrie Corridor Expressway was not there. The access just goes to Bukit Jelutong and we had use other roads to get to other areas,,” he says.

Nilai Impian will be another Bukit Jelutong in years to come.

On why it took 15 years to bring some semblance to the township, Zulkifli says the company has initially focused on the industrial aspect of it.

“The project only accelerated three years ago when SDP merged with Negara Properties. Previously it was driven by the industrial estates around it,” he says.

Zulkifli says that the purchaser profile for Nilai Impian would be the people from around the area.

“People who are in the middle-income bracket are our target. We are looking at the community from around Nilai and Seremban, and employees at KLIA and Putrajaya as well as those from the civil service.”

The township is targeted at owner occupiers, rather than investors looking for capital gains. It will have landed houses, mostly terraces, and mid-rise apartments.

Zulkifli notes that there is demand for semi-detached houses and bungalows, which will be developed later on in Nilai Impian.

There are five projects launched in Nilai Impian so far Iluna, Davina 2 and 3, Medina and Impian Avenue, all of which had 75% take-up rate compared with the average 50% for areas like this.

“The prices (of the property) have not gone up much. Therefore, there are not much investor interest. But I think the area has great potential ,” he says, adding that SDP is the only developer working on a project of this scale in that vicinity.

On the big picture front, he says that the company will keep making investments in Nilai Impian even though projects in Klang Valley naturally have higher returns for the group.

“We need to develop this kind of places because these are our bread and butter projects,” he adds. “Even if the economy is bad, we're still be there because this is what people would need.

He says while SDP is better known as a high-end developer, “that is not all that we do”.

“We also do this bread and butter projects. We build these townships and put in the same effort into them as with the higher-end developments elsewhere,” he says, adding that about 70% of SDP's portfolio comprise these developments.

However slow the appreciation of the property value in Nilai may be, landed property prices in Nilai have grown from the range of RM250,000 to RM350,000 in 2009 to RM420,000 to RM430,000 now for units with built-ups of between 1,700 sq ft and 2,000 sq ft.

While he admits the prices of SDP projects may be slightly higher than other smaller developers, he says that SDP brings amenities to the townships it develops.

Among the infrastructures SDP will introduce to Nilai Impian is a highway interchange and other road system to ease accessibility, as well as utilities.

“If you're building a township like this, you have to fork out money to build the roads and drainage system. Then only will we look at the parcels of land to build the properties. We will also be enhancing whatever utilities that may already be there,” he says.

He adds that there will be a toll gate at the new interchange, within Nilai Impian itself, to enhance accessibility not only to the township but also surrounding areas like Bandar Bukit Raja and Bukit Mahkota, to name a few.

By The Star

Bina Puri to leverage on new businesses as construction cost rises

With construction business margins getting squeezed because of higher labour and raw material costs, Bina Puri Holdings Bhd group managing director Tan Sri Tee Hock Seng is seeking to add recurring income into the company portfolio and diversify its core operations.

He tells StarBizWeek that he would personally be steering the company towards more recurring income and new businesses, and would divert all his personal “kangtao” to Bina Puri. Tee, a true blood Hokkien, places emphasis on “kangtao” also known among the Chinese as “guanxi” and often described as the “bamboo network” of clan associations, guilds and chambers of commerce and industry.

In the spirit of diversifying, Tee first ventured into the power generation business when an acquaintance offered some power plants in Indonesia for Bina Puri to purchase and this has turned out to be fruitful.

“Margins generated by the power plants are very healthy and is currently generating about 40% of its revenue,” he says in an interview recently.

However, according to him, the venture was not smooth as there was a lot of red tape, but guidance from his acquaintances made all the difference.

The company acquired an 80% stake in Indonesia-based PT Megapower Makmur via Bina Puri Power Sdn Bhd, and spent close to US$5mil on the investment.

Bina Puri is going to add a 4.2 megawatt (MW) hydropower plant to its portfolio of power plants soon as discussions are already in their final stages and an announcement is expected once the power purchase agreement is signed between the parties in Indonesia.

The hydropower plant will complement the company's existing five diesel-powered plants that have a combined capacity of 10MW located in Pulau Bangka, Indonesia.

A miner of the 1970s, Tee is also looking at a coal mine located in Kalimantan, Indonesia, which predictably, Bina Puri is going in via a local partner familiar with the area.

“It would be a joint venture, and we will be engaging Chinese contractors for this mine, as they are well known for their mining expertise,” he says.

While Tee is setting the stage for the company to diversify, construction is still the company's forte and core business, and the company is targeting to commence work as early as October for its RM864mil Pakistan highway concession.

“Our team is currently working on the technical and financial aspect of the motorway, and financing is expected to be done via Chinese banks based in Pakistan,” he says.

Pakistan's National Highway Authority awarded the work to Bina Puri in January to convert the existing four-lane highway into a six-lane motorway on a built-operate-transfer basis for a concession period of 28 years.

“I would like the construction business to contribute 50% to revenue, property development to generate 30% and mining and recurring income to give the rest” he says.

He says if the mineral business goes well in the future, the company will scale down on its construction business.

“Margins for construction contracts are very low, and not only are we faced with rising building material prices, the industry is also suffering from labour shortages,” he says, adding that he prefers to venture into property development, which offers better profit margins.

While its property development division had been somewhat dormant for the past two years, the company has already brought forward plans worth RM1.5bil in gross development value.

“Although construction has been our bread and butter, we must leverage on our prominent brand name and change with the times,” Tee says.

By The Star

Cyberjaya developer to pump RM2.5bil

Mustapha says Cyberjaya has become a development hotspot.

PETALING JAYA: The master developer for Cyberjaya, Setia Haruman Sdn Bhd, is set to pump a whopping RM2.5bil over the next five years to develop four projects and construct additional infrastructure for the area.

Called Cyberjaya’s “new wave”, chairman Tan Sri Mustapha Kamal Abu Bakar said that the projects were namely CBD Perdana 3 & 5, APEX Residence and a proposed mixed residential development.

About RM2.1bil will be used to develop the projects, while RM400mil has been allocated for the construction of infrastructure such as roads and drains, water reservoir drainage systems, sewage treatment plants and fibre optic.

Setia Haruman is 75% owned by Emkay Group, with the balance held by UEM Land Bhd. It is entrusted with designing, planning and developing about 2,830ha in Cyberjaya.

Mustapha said Cyberjaya had become a development hotspot with many property developers seeing potential to cater to working adults and students in the area.

“Over the last three years, 16 major developers have acquired large tracts of land for residential, commercial and institutional developments. This has resulted in Cyberjaya experiencing a residential and commercial boom,” he said.

Setia Haruman chief operating officer Lao Chok Keang said the company expected to fund the projects with internal funds.

“We have a facility of about RM200mil, and the gross development value of the projects would be 20% to 30% higher than our investment,” he said.

Since 2009, other developers like Mah Sing, SP Setia, OSK and Glomac began buying large parcels of land in the area, and there now are 16 developers building their projects concurrently in Cyberjaya.

The ongoing and upcoming cumulative investments amount to about RM20.6bil and are projected to reach RM52.6bil by 2016.

Cyberjaya now has about 11.1 million sq ft of completed offices, 263 shops, 3,200 completed residential units, four schools, and five universities and colleges.

Setia Haruman projects completed office space would reach 18 million sq ft by 2016, along with 1,200 shops, 14,000 residential units, seven schools, and eight universities and colleges.

Owing to the current ongoing projects, the company expects the town’s population to double to 100,000 by 2016.

Many multinational companies like HSBC, Huawei, Dell and IBM, among others, call Cyberjaya their home, with offices and staff based in Malaysia to support their regional business presence.

By The Star

Cyberjaya developer's grand vision

The main developer of Cyberjaya, Setia Haruman Sdn Bhd, will invest RM2.5 billion over the next five years to develop four mixed residential projects here, which it dubbed "Intelligent City".

Its chairman Tan Sri Mustapha Kamal Abu Bakar said the projects - CBD Perdana 3 and 5, APEX Residence and a proposed mixed residential development - will be riding on the "new wave" development of Cyberjaya, slated to start from this year right up to 2016.

Setia Haruman has also set aside RM400 million to build infrastructure such as roads and drains, water reservoirs, drainage systems, sewage treatment plants and fibre optic lines to service and support the "new wave" development.

"The projects' gross development value is about 30 per cent more than the amount invested," Mustapha said during a media briefing here, yesterday.

He said over the last three years, 16 major developers had acquired large tracts of land in Cyberjaya for residential, commercial and institutional developments.

The other developers include UEM, OSK Group, Mah Sing and SP Setia.

This "new wave" is expected to double the population here to 100,000 from the present 54,000.

"Property prices have appreciated by 30 per cent over the last two years and early investors have enjoyed substantial gains.

"With the many developments being undertaken by various developers, we expect Cyberjaya to be transformed from a development hotspot into a vibrant city of the future," he said.

Currently, the ongoing and upcoming accumulative investments in Cyberjaya by 16 developers is about RM20.6 billion.

By Business Times

Glomac buying Dengkil land for RM66.8mil

PETALING JAYA: Glomac Bhd is buying 191.75 acres of agricultural land in Dengkil, Selangor, for RM66.8mil or RM8 per sq ft from Lee Chin Cheng Dengkil Oil Palm Plantations Sdn Bhd.

Glomac told Bursa Malaysia that it had plans for a mixed residential development for the land. The deal is subject to the Estate Land Board's approval for the transfer of the land.

By The Star

RM2.5b investment on 'Intelligent City'

Master Developer of Cyberjaya, Setia Haruman Sdn Bhd, is investing RM2.5 billion over the next five years to develop four mixed residential projects in Cyberjaya, dubbed an "Intelligent City".

Chairman Tan Sri Mustapha Kamal Abu Bakar said the projects, namely CBD Perdana 3 and 5, APEX Residence and a proposed mixed residential development will be riding on the "New Wave" development of Cyberjaya.

Setia Haruman would also build infrastructures such as roads and drains, water reservoirs, drainage systems, sewage treatment plants and fibre optics to service and support the "New Wave" development till 2016.

The projects gross development value is about 30 per cent more than the amount invested, he told a media briefing.

Mustapha said over the last three years, 16 major developers had acquired large tracts of land for residential, commercial and institutional developments.

The concurrent investment and involvement of these developers have created a "New Wave" in Cyberjaya, resulting in a residential and commercial boom.

This "New Wave" is expected to continue over the next five years, with the population to double to 100,000.

"Property prices in this city has appreciated by 30 per cent over the last two years and early investors have enjoyed substantial gains.

"With the many developments being undertaken by various developers, we expect Cyberjaya to be transformed from a development hotspot into a vibrant city of the future," he said.

Currently, the ongoing and upcoming accumulative investments in Cyberjaya by 16 developers is about RM20.6 billion.

By Bernama

Setia Haruman to invest RM2.5b in Cyberjaya mixed residential project

Media briefing by Setia Haruman Sdn Bhd Chairman Tan Sri Datuk Haji Mustapha Kamal bin Haji Abu Bakar. From Left to Right: Tan Sri Datuk Haji Mustapha Kamal bin Haji Abu Bakar, COO C.K. Lao and Head of Business Development Pipah Mohd Nasir. - THE STAR/Low Lay Phon.

CYBERJAYA: Master Developer of Cyberjaya, Setia Haruman Sdn Bhd, is investing RM2.5 billion over the next five years to develop four mixed residential projects in Cyberjaya, dubbed an “Intelligent City”.

Chairman Tan Sri Mustapha Kamal Abu Bakar said the projects, namely CBD Perdana 3 and 5, APEX Residence and a proposed mixed residential development will be riding on the “New Wave” development of Cyberjaya.

Setia Haruman would also build infrastructures such as roads and drains, water reservoirs, drainage systems, sewage treatment plants and fibre optics to service and support the “New Wave” development till 2016.

The projects gross development value is about 30 per cent more than the amount invested, he told a media briefing.

Mustapha said over the last three years, 16 major developers had acquired large tracts of land for residential, commercial and institutional developments.

The concurrent investment and involvement of these developers have created a “New Wave” in Cyberjaya, resulting in a residential and commercial boom.

This “New Wave” is expected to continue over the next five years, with the population to double to 100,000.

“Property prices in this city has appreciated by 30 per cent over the last two years and early investors have enjoyed substantial gains.

“With the many developments being undertaken by various developers, we expect Cyberjaya to be transformed from a development hotspot into a vibrant city of the future,” he said.

Currently, the ongoing and upcoming accumulative investments in Cyberjaya by 16 developers is about RM20.6 billion.

By Bernama

65pc of i-Residence sold, before its launch

SHAH ALAM: I-Bhd's serviced residence project known as i-Residence, has sold almost 65 per cent of the units available even before it was launched yesterday.

I-Residence is the third component in the i-City development.

I-Bhd chief executive Datuk Eu Hong Chew said the company has managed to entice the hip and happening crowd of young families and singles to invest in i-City as their first property.

"Most of our buyers are first time buyers, newlyweds aged below 35 years old," he said after the launch of the i-Residence project.

Also present at the event was Housing and Local Government Minister Datuk Seri Chor Chee Heung who said that the had welcomed, the developers many initiatives to make it a safe city to live in.

Eu said the new residential area would take at least two and a half years to complete with a gross domestic value of RM225 million.

"We hope that more and more people will invest in our properties in due time. The whole area will be developed within the next 10 years. Right now only 15 per cent of the land has been utilised," he said.

I-Residence, a 33-storey condominium comprises of 346 units in two tower blocks and 20 units of low density exclusive duplex villas.

The duplex villas are ideal for large families with a built-up area ranging from 2,400 sq ft to 3,700 sq ft and offers 3+1 or 4+1 bedroom with private lift and a 50m Olympic sized long swimming pool at the doorstep.

I -City is a RM5 billion ICT-based integrated township development consisting of a shopping mall, cyber office suites, corporate towers, hotel along with residential and retail components.

The 72-acre freehold site, with 13 million sq ft of built-up, has been endorsed as a MSC Malaysia Cybercentre and a tourist destination by the Federal Government and as an International Park by the Selangor State Government.

By Business Times (by June Ramlee)

I-Bhd sees residential segment contributing 30% to revenue

I-t’s launched: I-Bhd executive chairman Tan Sri Lim Kim Hong (left), Housing and Local Government Minister Datuk Seri Chor Chee Heung and Eu (right) officiating at the ground breaking of i-Residence at i-City in Shah Alam yesterday.

SHAH ALAM: I-Bhd, the master developer of i-City, expects the residential segment of the information, communication and technology (ICT) based integrated township development to contribute 30% to its revenue.

“We are saying that the residential component is going to be about 30% of the whole of i-City. We hope that each segment will contribute fully to I-Bhd’s bottomline. In the long-term basis, we hope that they will contribute one-third each,” I-Bhd CEO Datuk Eu Hong Chew said.

He said the gross development value (GDV) of i-City’s first residential block amounts to RM225mil. This is 7.5% of i-City’s total GDV of RM3bil. i-Residence consists of a 33-storey condominium, which has 346 units in two tower blocks, and 20 units of low density exclusive duplex villas. Already 65% of the total units have been sold.

The size of the condominium units range from 715 sq ft to 1,357 sq ft while the 20 villas range from 2,400 sq ft to 3,700 sq ft.

i-City will have its own auxiliary force in accordance to the Housing and Local Government Ministry’s “Safe City” concept.

Piling works for i-Residence has started and construction is expected to be completed in 2½ years’ time.

Eu said: “We have 8 million sq ft of gross floor area set for residential. We will be launching 1 million sq ft a year. The first residential block in i-Residence is 500,000 sq ft.”

The remaining build-up space will be launched by year-end.

He expects the total development of i-City to be completed in 10 years.

“We are one of the very few high-rise developments in the Shah Alam area. The profile shown is that it suits young adults,” Eu said.

The universal theme of i-City is “Live, Work and Play”. i-Residence is part of i-City’s “Live” component, while the MSC Malaysia Cybercentre represents its “Work” component.

As part of the “Play” component, i-City launched the city of digital lights in December 2009 and subsequently introduced Snowalk and its theme park rides.

In a recent report, Kenanga Research said it expected i-City’s real GDV to be close to RM5bil assuming the average selling price hits a high of RM550 per sq ft.

Eu said: “We have zero gearing, so there are no loans on our side. In a down-cycle, we don’t lose anything. From a business perspective, even if we don’t sell anything, we will still have RM30mil to RM40mil recurring income, which is made up of rental income and leisure income.”

The entire development of i-City spans over 72 acres of freehold land. Only 15% has been developed. i-City will launch its water resort by year-end.

A direct flyover from the Federal Highway to i-City is currently under construction and will be completed in September.

The RM58mil flyover project was undertaken by the Menteri Besar Inc to ease traffic flow to and from the area.

By The Star

Glomac arm to buy land in Sepang for RM66m

Magical Sterling Sdn Bhd, a wholly-owned subsidiary of Glomac Bhd, has proposed to acquire 77.5 hectares of land in Sepang, Selangor, for RM66.821 million, or RM8.00 per sq ft.

In a filing to Bursa Malaysia today, Glomac said Magical Sterling has entered into a sale and purchase agreement with Lee Ching Cheng Dengkil Oil Palm Plantations Sdn Bhd for the proposed acquisition.

The purchase consideration for the land, cultivated with oil palm trees, was arrived at on a willing-buyer willing-seller basis, after taking into consideration the development potential of the land and the market value of the properties surrounding the area.

The proposed acquisition, to be paid wholly in cash from internally generated funds and borrowings, is in line with Glomac's core strategy of acquiring suitable development landbank within the Greater Kuala Lumpur with strong potential for prime and sizeable new developments with high development value.

Glomac added it intends to develop a mixed residential development project on the land.

By Bernama

Way cleared to complete Plaza Pantai,now called BangsarTrade Centre

KUALA LUMPUR: Malaysia Building Society Bhd (MBSB) yesterday signed a debt settlement agreement for RM120 million with Twin Pavilion Development Sdn Bhd to revive and complete the Pantai Plaza project in Bangsar here.

MBSB chairman Tan Sri Abdul Halim Ali said the agreement will settle the debts of Atlas Corp Sdn Bhd, the project's previous developer.

Twin Pavilion Development has taken over the project, now called Bangsar Trade Centre (BTC).

Speaking to reporters after the signing ceremony, MBSB president and chief executive officer Datuk Ahmad Zaini Othman said the group will extend a RM120 million end-financing assistance to the project's purchasers.

Twin Pavilion Development chief executive officer Lee Seng Khoon said construction will begin in August and will be completed in three stages beginning August next year until December 2014, with the completion of the BTC wholesale mall, followed by the business suits and corporate office tower.

Twin Pavilion Development chairman Tan Sri Ramli Ngah Talib said BTC will cover 1.4 million sq ft of purpose-built business space, with a RM850 million gross development value and is expected to welcome about 10,000 people daily.

Federal Territories and Urban Well Being Minister Datuk Raja Nong Chik Raja Zainal Abidin, who launched the BTC project, said more sites will be identified for redevelopment as the momentum for urban renewal has accelerated under the government's Economic Transformation Programme to reach its full potential.

"There is no doubt that parts of Kuala Lumpur will need urban renewal in the years to come.

"This is in addition to the areas identified for redevelopment under the Greater Kuala Lumpur project," he said.

Raja Nong Chik said Pantai Plaza's restoration is timely and in line with the upcoming development within the vicinity.

"I am sure KL residents, especially from Pantai Valley, will look forward to BTC's completion as it captures their imagination of what an integrated development in this location should be standing tall as a new entry to the place," he added.

By Bernama

Residents want green field back

In question: The PKNS field in Kelana Jaya which residents want to be retained as green lung.

Discrepancies in the Petaling Jaya Local Plan 2 has led to residents stepping up the campaign to save the PKNS field in Kelana Jaya.

The field earmarked for development of five 35-storey apartment blocks has been the subject of controversy among residents who want the field retained as a green lung.

After several attempts to stop the development, the action committee found a discprepancy in two versions of the local plan, one by the Petaling Jaya City Council (MPBJ) and the other by the Selangor Town and Rural Planning Department.

The MBPJ version states that the status of the field is commercial while the planning department has marked it as a green lung.

The error was highlighted by councillor Derek Fernandez at the full board meeting earlier this week sparking outrage among residents.

“The process of tampering a government document is fraudulent. It should be investigated and a police report should be lodged because it involves so many people,” said action committee secretary Esham Salam.

“It is the responsibility of PKNS to return the field otherwise the land status might be changed later on and the development could take off,” he added.

The committee is urging Selangor Mentri Besar Tan Sri Khalid Ibrahim to make a commitment to return the field.

Meanwhile, Kelana Jaya Barisan Nasional component parties are asking for a full explanation on the discrepancies discovered in the local plan.

“I don’t know if the residents can accept a technical error as an explanation,” Kelana Jaya BN coordinator Ong Chong Swen.

She said the council had not received any development plans but noticeboards had been put up and meetings arranged with the residents.

She, however, commended Roslan for admitting it was a serious error.

Roslan in a press conference after the full board meeting said the development would not be carried out.

“Any development made based on the wrong plan will not be accepted,” he said.

Ong also said the action committee had lodged a report with the MACC on the matter.

Residents, who attended a press conference organised by Ong at her office in Regalia Subang Jaya, were unhappy with the proceedings.

A resident, Mohd Aminuddin Che Mat Din said the mayor might say that the project would not take off now since the mistake had been found out but what guarantee was there that the development would not be approved later on.

“We want to put a stop to it now,” he said.

Ong said they would lodge a police report on the discrepancies.

By The Star

Daiman hotel under Hilton brand

PETALING JAYA: A Daiman Development Bhd property in Johor Baru is set to become part of the Hilton Hotels & Resorts stable. In a statement to StarBiz yesterday, Daiman Development clarified that the management agreement signed on May 28 by wholly-owned Daiman Landmark Hotel Sdn Bhd and Hilton of Malaysia LLC is for Hilton to provide development services and to operate a hotel owned by Daiman Landmark Hotel.

The hotel will be run under the ‘DoubleTree by Hilton’ brand. Hilton of Malaysia is an affiliate of Hilton Worldwide Inc.

By The Star

Glomac near deal to sell complex en bloc

KUALA LUMPUR: Glomac Bhd may ink an en bloc deal soon with an investor looking to buy its integrated commercial complex in Kelana Jaya, which has a gross development value (GDV) of close to RM300 million.

The complex, which comprises a high-rise office tower, an office suite and a mall, will be developed on a 1.45ha land, previously used by Kelana Seafood Centre.

According to group managing director and chief executive officer, Datuk FD Iskandar, Glomac is currently in talks with two potential buyers.

"The investors, a combination of both foreign and locals, are looking at the project in totality," he said yesterday on the sidelines of Invest Malaysia.

Meanwhile, Glomac, a medium-size developer with market capitalisation of around RM550 million, expects to increase the value of existing projects in hand from RM1.4 billion to RM7.4 billion, as it introduces new developments.

Glomac is buying more land in Greater Kuala Lumpur, despite global economic uncertainties and volatilities in the market.

The company is expected to close a deal soon to buy 84ha in Puchong for RM77 million. It is also buying 84ha in Sungai Buloh for RM45 million, to expand its ongoing Bandar Saujana Utama township there.

"Barring any unforeseen circumstances, we hope to launch the project in Puchong by year-end, or early next year. The project will have a GDV of RM2 billion. We expect another RM2 billion from the extension of Bandar Saujana township," Iskandar said.

Iskandar is bullish on the property market, adding that demand for landed properties is still going strong.

"Property is the only commodity, where 97 per cent of the time, it grows in value. People will stop buying only if they don't have confidence in the economy.

"Although the world economic is struggling, property demand, especially for landed properties, is still holding very strong," he said.

On earnings, Iskandar said Glomac will post record net profit this year. For the first nine months of its financial year, net profit rose 32.2 per cent to RM63.5 million compared to the previous corresponding nine-month period.

This surpassed the company's full-year net profit of RM63 million, for fiscal 2011.

By Business Times

RM48bil gross development value for SIC project

GuocoLand MD says the project destined to be a model city of the future

PETALING JAYA: GuocoLand (M) Bhd, the property arm of Hong Leong Group, will be developing the Sepang International City (SIC) with a gross development value of RM48bil.

GuocoLand said in a statement that the proposed project would span about 1,620ha in the southern corridor of Selangor and would be developed over 18 phases.

Full completion of the project is expected to take 15 to 20 years.

“The seafront development will include commercial, business, residential and leisure developments, a hub for institutions of higher learning and a large world-class urban park that will be modelled after the Central Park in New York City,” it said.

GuocoLand managing director Yeow Wai Siaw said the SIC would serve as the catalyst for the growth and future development of Sepang and its surrounding areas.

“SIC is destined to be a model city of the future, not only in Malaysia but in this region. We are very honoured to undertake our second entry point project (EPP) initiative,” he said.

The EPP is part of the new 21 Economic Transformation Programme (ETP) projects announced by Prime Minister Datuk Seri Najib Tun Razak at an ETP progress update briefing earlier this week.

More than 500,000 people are expected to live and work in the SIC.

The project would be supported by direct transport links to the KL International Airport, Kuala Lumpur and other major points in greater Kuala Lumpur and the Klang Valley, it added.

GuocoLand's other projects include Damansara City in Damansara Heights, Commerce One along Old Klang Road, the Emerald master-planned township in Rawang, PJ City Corporate Hub in Petaling Jaya and Amandarii in Kajang.

By The Star

Mah Sing scouting for additional land with potential GDV of RM1.4bil

KUALA LUMPUR: Mah Sing Group Bhd is aiming to acquire additional land with a potential gross development value (GDV) of RM1.4bil this year.

“We have acquired land with GDV of RM3.63bil so far this year, which is about 73% of our target of RM5bil. We have seven months to go, and we definitely have to lock in more land to fuel our long-term growth,” said group managing director and chief executive officer Tan Sri Leong Hoy Kum on the sidelines of the Invest Malaysia 2012 conference.

This year, Mah Sing has acquired land for projects consisting of M Residence 2 in Rawang, Sutera Avenue in Kota Kinabalu, and Southville City which is a planned 412-acre township in Bandar Baru Bangi.

Leong pointed out that Mah Sing currently has 39 residential, commercial and industrial projects across Greater Kuala Lumpur, Johor, Penang and Sabah, with remaining GDV and unbilled sales of RM18.2bil.

The group’s executive director Steven Ng Poh Seng said 70% of the remaining GDV would be from projects in the Klang Valley.

Ng also pointed out that the group has unbilled sales of RM2.48bil as of March 31.

“In acquiring more land, we also make sure we juggle our cash flow well and that the group’s net gearing does not exceed our internal target of 0.5 times,” said Ng.

Ng said the group’s net gearing was still manageable even after the recent RM333.26mil acquisition of 412 acres targeted for a mixed township near Bangi, Selangor.

“We have four to five months to pay for the land. Then we have about RM300mil cash coming in (from delivery of vacant possession of property units). Our gearing is always very manageable because of our quick turnaround business model.” Presently, the group has a land bank of 1,538 acres.

“Even now, we have enough land (to develop) for the next seven to eight years,” said Leong.

As at May 15, the group has achieved property sales of slightly above RM1bil, which is 40% of its 2012 sales target of RM2.5bil.

The bulk of sales were in the Klang Valley (82%), followed by Johor Baru (10%) and the balance from Penang.

Leong said he was “selectively optimistic” regarding the property market this year.

“We need to fit supply to demand. For example, we focus more on mass market products priced below RM1mil such as small serviced residences or link homes,” said Leong.

He also said the group was exploring potential opportunities in the region.

By The Star

Mah Sing expects more foreign buyers

KUALA LUMPUR: Mah Sing Group Bhd, Malaysia's second largest listed developer by sales value in 2011, expects more foreign buyers for its properties, and the driver will be the new 21 projects announced recently, with committed investment of RM20.46 billion.

"These projects will attract more foreigners to invest in Malaysia's real estate sector. By having the right products in good locations, we will be able to attract them," said Mah Sing group managing director cum group CEO, Tan Sri Leong Hoy Kum.

Leong said despite the gloomy global economic picture, Mah Sing experienced strong take-up from foreign property buyers in the last two years, increasing from five per cent to around 10 per cent.

They are mainly buying into projects like M City at Jalan Ampang, Icon City in Petaling Jaya, and Southbay Plaza in Penang, he said yesterday, at the sidelines of Invest Malaysia.

Leong said Mah Sing is setting up offices in Jakarta, the UK and Singapore to woo foreign buyers here. It already has an operating office in China to do that.

On the property market outlook, Leong expects robustness in selected segments. Leong expects stronger demand for properties, especially in gated and guarded schemes, priced above RM1 million, in Greater Kuala Lumpur.

Mah Sing currently has 39 residential, commercial and industrial projects in Greater KL, Johor, Penang and Sabah, with remaining gross development value (GDV) and unbilled sales of RM18.2 billion.

Some 30 per cent of its residential projects are in the RM1 million to RM3 million range, and they comprise mainly semi-detached homes and bungalows.

By Business Times

WCT bids for public infrastructure concessions

KUALA LUMPUR: WCT Bhd, construction, engineering and property outfit, has bid for public infrastructure-related concessions in exchange for land deals from the government, through a public-private partnership (PPP).

Through PPP, a government aims to secure investment and greater efficiency in the delivery of necessary public services in areas such as infrastructure, healthcare, and education by getting the private sector to take them on.

As an incentive, the government may offer concessions, tax breaks, or grants to the relevant private sector players to create a business case.

WCT manager for corporate affairs, Kenny Wong Yik Kae said the land deals will not only lift the group's property development activities, but construction order book as well.

"Getting more concessions especially under the Economic Transformation Programme is part of our way of broadening our construction profile," Wong said yesterday, at the sidelines of Invest Malaysia.

On the type of concessions that WCT has bid for, Wong said they are similar to the integrated complex at KLIA 2 in Sepang, Selangor.

WCT won last year a 25-year concession from Malaysia Airports Holdings Bhd, for privatisation of the construction, development and financing of the integrated complex. The complex will be constructed at a cost of RM530.3 million, funded via a combination of loans and shareholders equity.

By Business Times

Reasonably priced homes

The second phase of the Garden Heights residential development is located within Bandar Tasik Puteri (BTP) township in Rawang.

Indah Jaya Development Sdn Bhd, a subsidiary of Low Yat Group, will soon unveil the second phase of its Garden Heights residential development, in Rawang within the 2,670-acre (1,080ha), Bandar Tasik Puteri (BTP) township.

It comprises 123 units of valuefor- money double-storey terrace houses with a land area of 18ft by 75ft with a built-up area of 148.64sqm (1,600sq ft).

This guarded community known as BTP 4, spans an expansive 6.61 acres (2.68ha). The houses have four bedrooms and three bathrooms each.

Its proximity to the KL-Kuala Selangor Expressway (Latar Expressway) is poised to give the over 50,000 (BTP) residents valueadded benefit as a link road will be built to shorten the distance to the Kuala Lumpur city centre.

Indah Jaya Development marketing and business development senior manager Joseph Chia said currently BTP residents take about 30 minutes to get to KL via the North South Expressway, Latar Expressway and Guthrie Expressway.

“The Latar Expressway already exists, therefore we foresee that a link road in the future will provide greater convenience to residents and boost market appreciation,” he said, adding that Garden Heights Phase 2 is expected to be completed in 2014.

As landed properties are becoming few and far between, city dwellers have found comfort in suburban areas that are still within reach via carefully planned expressways.

The increasing demand for landed property continues to surge, especially for first-time homebuyers and families looking for a lifestyle upgrade.

Garden Heights Phase 2 homes comprise 123 units of value-for-money double-storey terrace houses.

Garden Heights Phase 2 is perfect for city dwellers who want to escape from the hustle and bustle of the city, and yet want a landed property within serene and natural surroundings. The cost of the two-storey terraces which are affordably priced ranges between RM290,000 and RM478,000. It offers long-term value for homebuyers and boasts spacious, modern designs with a 24ft (7.3m) driveway to fit two cars.

Aside from that, the renowned Bandar Tasik Puteri Golf & Country Club, neighbouring industrial facilities and the relatively new Aeon Anggun Rawang Shopping Centre which is 10 minutes away, adds to the market appreciation in BTP.

Future phases have been earmarked to comprise double-storey link houses, semi-detached, cluster homes and bungalows boasting modern architecture, in a safe environment within a 24-hour guarded community.

Bookings for Garden Heights Phase 2 started on May 26 with a fee of RM1,000. Prospective buyers will also enjoy early bird discounts, no legal fees for loan and Sales & Purchase Agreement (SPA) and Developer Interest Bearing Scheme (DIBS).

Low Yat Group is a well-diversified developer and investment group in Malaysia. The group, which was initially involved in private and government construction projects, has now diversified into trading, manufacturing, plantation, hotel and tourism industries in Malaysia, Japan, Australia, China and Indonesia.

For details or enquiries, e-mail btpsales@lowyatgroup.com.my. Call 03-6034 5390 / 016-213 9311 or visit www.bandartasikputeri.com. my

By The Star

IJM Land unveils RM11b township development

From left to right: SME TM executive vice president Azizi A Hadi, TM Selangor vice president Datuk Zaini Maatan, IJM Land Berhad chief executive officer and managing director Datuk Soam Heng Choon and Canal City Construction Sdn Bhd chief operating officer Shuy Eng Leong exchanging documents after the service agreement signing with Telekom Malaysia Berhad (TM) for high speed broadband in Bandar Rimbayu.

PETALING JAYA: IJM Land Bhd has unveiled its newest development the RM11bil Bandar Rimbayu township development which focuses on sustainable lifestyles and strong connectivity elements.

Bandar Rimbayu is a mixed-township spread over 1,879 acres close to Kota Kemuning.

“The Bandar Rimbayu township reflects IJM Land's vision of what townships of the future would look like. The green township concept is in response to the demand from residents of the future who are becoming increasingly concerned about giving back to the earth. Also, homeowners of the future do not just want a house, they want a residence complete with a holistic lifestyle, thus we are offering a carefully planned and designed township that emphasises better quality of life,” said IJM Land managing director and chief executive officer Datuk Soam Heng Choon.

In addition to green living, Soam said the connectivity was also very important for Bandar Rimbayu.

“This connectivity covers the physical where we make it convenient for residents to move around within the township and also beyond,” he said.

In conjunction with the launch of the project, IJM Land has signed a service agreement with Telekom Malaysia Bhd (TM) for the provision of high speed broadband (HSBB) infrastructure in Bandar Rimbayu.

“With the collaboration, we will be offering TM's HSBB service, UniFi, to residents of our first phase free of charge for one year,” he said.

Datuk Soam Heng Choon (left) and Shuy Eng Leong presenting the scale model of the Bandar Rimbayu township at the media preview.

Bandar Rimbayu's identity as a green township is further expressed via sustainable use of natural resources and environmental consciousness. Most notably, there will be more than 50,000 trees, palms, shrubs, flowering plants, aquatic plants, herbs and climbers around The Arc and Sales Gallery.

Divided into four precincts, Bandar Rimbayu consists of Flora, a mixed residential area, Fauna, a mixed residential area with amenities including shops and a school, Bayu, a 280-acre high-end waterfront residential development by the lakeside; and the commercial hub, which include a canal, town square and service apartments.

Bandar Rimbayu is targeted for completion within 15 years and will boast about 10,000 residential units. The launch of its maiden product The Chimes, consisting of 526 units of link homes, is targeted for the second half of this year.

By The Star

IJM unveils RM11b project

KUALA LUMPUR: IJM Land Bhd has introduced its newest property development, called Bandar Rimbayu, which has an estimated gross development value of RM11 billion.

Bandar Rimbayu is a mixed township project that spread over 761ha across Kota Kemuning in Shah Alam, Selangor.

"Designed with an emphasis on sustainable lifestyles for residents with strong connectivity elements, Bandar Rimbayu reflects IJM Land's vision of what townships of the future will look like.

"The green township concept is our response to the demand from residents who are becoming increasingly concerned about giving back to the earth," said IJM Land's managing director and chief executive Datuk Soam Heng Choon in a statement.

In conjunction with the launch of the development project, IJM Land also signed a service agreement with Telekom Malaysia Bhd (TM) for the provision of high-speed broadband (HSBB) infrastructure at Bandar Rimbayu.

"This service agreement with TM, Malaysia's No. 1 broadband provider, signifies our commitment in providing fibre (connection) to home facility... we will be offering TM's HSBB service, UniFi, to residents of our first phase free of charge for one year," Soam said.

The Bandar Rimbayu township is targeted for full completion within 15 years and will boast about 10,000 residential units in total.

The launch of its maiden product, The Chimes, is targeted for the second half of 2012.

By Business Times (by June Ramlee)

Sara-Timur in joint venture to build RM600mil project

KOTA BARU: Kuala Lumpur-based Sara-Timur Sdn Bhd will be developing the RM600mil Kota Baru Sentral@Tunjung on 40 acres in a joint venture with Tunjung Development Corp and Perbadanan Mentri Besar Kelantan.

It took Sara-Timur several years of planning to fully exploit the potential of the site so that investors can make the best from the new urban development. — PROFESSOR EMERITUS M ZAWAWI ISMAIL

Sara-Timur chairman Prof Emeritus Datuk M Zawawi Ismail said the project, which would be launched after Hari Raya in August, would incorporate elements of a modern lifestyle urban intelligent city.

The project includes a village shopping mall, convention and function mall, leisure center, cineplex, boutique hotels, service apartments, office suites, a library and housing residences located in Bandar Baru Tunjung.

Zawawi told reporters after witnessing the launch of the Rehda Exhebition here yesterday that the project would incorporate green technologies and attract investors from Kelantan as well as other states. It would be tailored to sustain economic growth.

“It took Sara-Timur several years of careful planning to fully exploit the potential of the site so that investors can make the best from the new urban development,” he said.

Zawawi also said Bandar Baru Tunjung has been selected as a new city to match the pace of Kota Baru town while the area would change over the next five years as environmentally-friendly features were incorporated.

Meanwhile, Sara-Timur founder and managing director John Loi Hieng Yee said in a statement that the company chose to support the new development because of the incredible impact it would make on the lives of families and the community.

He said the project provided attractive investment opportunities with the local government drawing private capital via a new strategy for urban redevelopment.

Sara-Timur was founded in 1995 in Kuching but relocated to Kuala Lumpur. Its projects include Sutera Harbour Resort and Sandakan Habour Square in Sabah, Kuala Lumpur City Centre, Sarawak State Stadium.

By The Star

SP Setia wants half of group revenue to come from overseas projects

KUALA LUMPUR: SP Setia Bhd is aiming for half of its revenue to come from overseas projects in five years.

“We want to be an international property player, not just a regional property player,” president and chief executive officer Tan Sri Liew Kee Sin said on the sidelines of Invest Malaysia 2012 conference.

Liew said property developments in Melbourne, Australia, and Singapore were expected to contribute RM700mil to the group's target of RM4bil in new property sales for its financial year ending Oct 31 (FY12).

SP Setia's Malaysian projects are expected to contribute about RM3bil to the FY12 sales target while its projects in Vietnam EcoLakes and EcoXuan are also expected to do well.

Liew told StarBiz that the group's Fulton Lane apartment development in Melbourne had achieved RM400mil sales since its launch last November, while its maiden project in Singapore, 18 Woodsville, had a 90% take-up rate since its launch in late April.

“About 75% of our sales in Melbourne are to Malaysians. More than half of the RM250mil sales in Singapore are to Malaysians. This is part of our two-pronged strategy, where we tap on the Malaysian demand for property in mature overseas markets,” he said.

Liew said that for the next two years, the bulk of SP Setia's overseas sales would come from Melbourne and Singapore. “Hopefully we can also launch Chestnut Avenue, our other project in Singapore, in three to six months time.”

He said the group's strategy also consist of capitalising on its township development expertise in countries with sizeable populations such as Vietnam, China and “hopefully, Indonesia in the future.”

“When we go overseas, we become a much better developer. I am thankful. We learn so many things ... design concepts, practises and new ideas,” he said.

He said the group's remaining land bank of 4,319 acres (of which 88% is in Malaysia) should last for 10 to 15 years.

SP Setia Bhd and Rimbunan Hijau Group are also in a joint venture with Qinzhou Jingu Investment Co Ltd to develop the Qinzhou Industrial Park (QIP), starting with the RM2.6bil start-up district of QIP.

SP Setia will have an effective stake of 22.05% in the China joint-venture company to be formed.

“For the QIP, we are in the midst of doing an audit (of land and infrastructure costs). We expect to finish this in the next three months. There will be revenue contribution from QIP in perhaps two years.”

Liew also confirmed that SP Setia was one of the three bidders on an informal shortlist for the Battersea Power Station site in London.

“We will give our traditional best shot. Hopefully, in the next two or three weeks, we will know the results. But even if we lose, we will continue to invest in the United Kingdom.”

On the group's flagship Bandar Setia Alam in Shah Alam, Liew said about half of the 4,000-acre township remained to be developed.

“We will launch apartments in Bandar Setia Alam soon. Our convention hall in Setia City Mall will be ready at the end of this year.”

Liew said Setia City Mall, which was recently opened, had been a successful venture with about 50,000 visitors a day.

“We do have plans for other malls in the future, subject to location,” he said.

By The Star

SP Setia: Foreign ops to play a key role

SP SETIA Bhd, the country's largest property developer, expects half of its sales to come from overseas projects in five years as it becomes an international property developer.

The company anticipates overseas projects to contribute less than afifth to its total sales for the current fiscal year.

"We are on track to hit our RM4 billion sales mark by end of our 2012 financial year. From the amount, RM700 million will come from overseas operations," said SP Setia president and chief executive officer Tan Sri Liew Kee Sin on the sidelines of Invest Malaysia 2012 yesterday.

"In five years, we expect 50:50 contribution from our local and overseas property projects. There's only so much growth you can generate from Malaysia. In order to expand the business further, we have no choice but to expand to the overseas market."

Liew also confirmed that the company is one of the three shortlisted firms for the Battersea Power Station site in London.

"That's all we know for now. If we secure the project, we will be very happy. But if we do not, we would not be going home empty pocket, as we have learnt so much along the way," he said.

Among the things the company "learnt" in its journey to be an international player include placing the importance of greenery in a property and the significance of maintaining an iconic structure.

SP Setia, which currently has over 1,720ha of landbank, said it is enough to keep the company busy for the next 10 to 15 years. About 88 per cent of the land is located in Malaysia.

By Business Times

Gromutual’s project to gain from new JB transport hub

JOHOR BARU: Gromutual Bhd expects its first high-rise project to benefit immensely from the upcoming integrated transportation hub in Iskandar Malaysia.

Executive director Teo Yu Hong said the project's site along Jalan Kempas Lama just a few metres away from Kempas Baru would be its strong selling point.

Teo: Gromutual will launch the project either in early or mid-2013.

Kempas Baru station in Johor Baru would be developed into an integrated transportation hub in Iskandar Malaysia. To be known as Kempas Sentral, it is expected to be several times bigger than KL Sentral station.

Kempas Sentral will have an integrated transportation system encompassing commuter trains interconnected with the rail network at KTM Kempas Baru station, feeder bus and taxi services.

“Initially, we wanted to offer studio units but changed it to two-room and three-room apartments as demand for such properties is good in Johor Baru,'' Teo told StarBiz after Gromutual's AGM.

Teo said Malaysians were still not used to studio apartment living unlike those in world's big cities such as New York, Paris, London, Tokyo and Singapore.

He said the company would launch the project either in early or mid-2013 with an indicative selling price between RM400 and RM450 per sq ft.

Teo said phase one on a 1.41ha site would comprise 21-storey and 26-storey tower blocks with 460 units of two and three-room apartments. The units will have built-up areas of between 800 sq ft and 1,500 sq ft.

Phase one, with a gross development value of RM150mil, will take three years to complete. It will be followed by phase two on a 2.02ha site.

“We are targeting Malaysian professionals working in Singapore and young families as buyers for our project,'' he added.

Meanwhile, Teo said Gromutual would look for more land in Malacca for its future residential property projects as prices of land in Malacca was much lower compared with in Johor.

He said the company was also seeking land in Kuala Terengganu and Ipoh as these two areas offered long-term growth prospects.

For the financial year ended Dec 31, 2011, Gromutual recorded RM21.40mil net profit on RM96mil revenue against RM11.49mil net profit on RM71.70mil revenue in the previous year.

By The Star

E&O Q4 net profit triples

E& Quayside project in Seri Tanjung Pinang

PETALING JAYA: Eastern & Oriental Bhd (E&O) saw its net profit for the fourth quarter of its financial year ended March 31 more than triple to RM42.37mil from the RM13.73mil registered in the corresponding period last year.

The niche property developer said its encouraging earnings growth was mainly attributable to strong sales and higher revenue recognition as well as cost control initiatives.

E&O raked in a revenue of RM210.57mil for the quarter, up 78% from RM118.06mil a year earlier. Earnings per share (EPS) improved to 3.84 sen from 1.29 sen previously.

The company has proposed a final dividend of 4.25 sen per share, an improvement from the two sen it paid out in FY11.

On a cumulative basis, E&O’s net profit stood at RM123.46mil for FY12, almost quadruple from the RM32.21mil it registered for FY11. Revenue for FY12 rose about 81% to RM492.17mil from RM271.27mil in FY11.

EPS for FY12 improved to 11.29 sen from 3.04 sen in FY11.

In a statement, E&O said sales for the period under review stood at RM786.78mil, while unbilled sales were close to RM1bil as at March 31. Key contributors to sales included E&O’s landmark Quayside Seafront Resort Condominiums at Seri Tanjung Pinang, Penang, launched in 2010 and currently close to 90% sold.

By The Star

Foreign interest in RM48b project

GUOCOLAND (M) Bhd, the property arm of the Hong Leong group, hopes to start in 18 months work on the estimated RM48 billion Sepang International City, which is among the 21 new Economic Transformation Programme (ETP) projects sannounced by Prime Minister Datuk Seri Najib Razak yesterday.

It is now in the midst of getting the approvals from both the Selangor and Federal governments and talking to international investors.

Managing director Yeow Wai Siaw said investors from East Asia, especially Japan, China and Singapore, are keen on investing in property development here, including Sepang International City.

Najib announced the project along with 20 new projects under the ETP here yesterday.

“Every developed nation needs a vibrant capital, and GuocoLand is one of the new project owners that will be part of ensuring this,” he said.

Najib added that GuocoLand has committed an investment of RM12.5 billion in the development of the Sepang International City, which is projected to generate RM1.34 billion in gross national income (GNI) and create more than 4,000 jobs.

Speaking to reporters after the announcement, Yeow said the Sepang International City will be a world-class and seafront development stretching across 1,600ha.

The development of the integrated and sustainable eco-city with a gross development value of RM48 billion will include commercial, business, residential and leisure development.

Another project announced yesterday was the RM1.57 billion committed investment by Boustead Heavy Industries Corp Bhd to develop sustainable competitiveness in shipbuilding and ship repair.

"We will start from 2014 and hope to train at least 100 technicians annually until 2020 to meet not just our own requirements but the industry, too," said managing director Tan Sri Ahmad Ramli Mohd Nor.

He said the project will involve a plan to move up the value chain of the shipbuilding and ship repair industry by developing local design and systems engineering capability and skilled shipyard human capital.

The project contribution to GNI will be about RM537.24 million by 2020 and will create 1,043 jobs by then.

By Business Times

Guocoland to invest RM12.5b in eco-city

PETALING JAYA: Hong Leong Group's property arm Guocoland (M) Bhd will invest RM12.5bil under the Greater Kuala Lumpur National Key Economic Area for the development of a 4,000-acre eco-city in Sepang.

The gross development value of the Sepang International City is RM48bil and the project is expected to contribute RM1.34bil to the country's gross national income and create 4,712 jobs.

The investment is the biggest from a single Entry Point Project (EPP) partner under the new 21 Economic Transformation Programme (ETP) projects announced by Prime Minister Datuk Seri Najib Tun Razak at an ETP Progress Update briefing yesterday.

Managing director Yeow Wai Siew said Guocoland was in the midst of getting the approvals for construction works to begin.

“We are now going through the proper application and planning stage with the Federal and State Governments. Hopefully we will be able to start the development in one-and-a half years' time,” he said.

Yeow said Guocoland was also talking to international investors for the project. “There are a lot of investors from East Asia now, especially from Japan and China, with some from Singapore,” he said.

He noted that since Japan's March 2011 tsunami disaster, Japanese investors had been looking abroad for property that they could use for emergencies.

The seafront development in the southern corridor of Selangor will include commercial, business, residential and leisure developments, a hub for institutions of higher learning and a large world-class urban park modelled after the Central Park in New York City.

By The Star

Dijaya wins BCI Asia Top 10 Developers Award

Award recognition: Dr Krups (left) presenting the award to Tong.

Property developer Dijaya Corporation Berhad (Dijaya) was awarded the BCI Asia Top 10 Developers Award 2012 at the BCI Asia Awards 2012 ceremony on May 22 in Kuala Lumpur.

This award is a testimony to Dijaya’s ongoing endeavour to strengthen its Tropicana branding and create high-quality and innovative property developments in which people want to work, live and play.

This year, Dijaya is part of the top 10 Malaysia developers whose combined portfolios contain US$3bil (RM9.4bil) worth of properties.

Dijaya managing director Datuk Tong Kien Onn received the award from BCI Asia chairman Dr Matthias Krups.

Now into its eighth year, the BCI Asia Awards is a regional event attended by the industry’s top architects and building professionals in Hong Kong, Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam.

This event highlights key industry players that enable the market to better understand the important roles the organisations play as well as their impact, both socially and on the environment.

The BCI Asia Top 10 Developers Award recognises key industry players in the country.

By The Star

Mah Sing Q1 net soarson Greater KL projects

Mah Sing Group Bhd, one of the country's top developers, said its first quarter net profit surged by 46 per cent to RM59.9 million on the back of a 47 per cent growth in revenue to RM457.7 million.

The group attributed the growth largely to its property development projects in Greater Kuala Lumpur.

In a statement issued yesterday, Mah Sing said it has achieved slightly over RM1 billion in property sales as at May 15 2012, marking 40 per cent of its RM2.5 billion target for 2012.

Its property development projects in Greater Kuala Lumpur contributed 82 per cent to the sales. Johor Baru and Penang contributed 10 per cent and eight per cent, respectively.

The stock closed one sen higher yesterday to RM1.98.

Meanwhile, the group's unbilled sales stood at RM2.28 billion during the first quarter ended March 31 2012, or 1.8 times the revenue recorded from its property development division last year.

"We have planned our product mix in line with the market demand, as evidenced by the strong take up, for example, our township development of Kinrara Residence did very well when we launched our semi-detached homes and bungalows.

"This shows that there is continued demand for landed residential properties in good location, especially in gated and guarded schemes," said Mah Sing group managing director and group chief executive Tan Sri Leong Hoy Kum.

Leong said the group's newly launched mass market township, M Residence@Rawang, also showed robust take up, reflecting market demand for affordable housing.

In the high rise segment, there was strong demand for smaller units of affordable serviced residences, he said.

Leong said Mah Sing is sitting on a cash pile of RM581 million, giving it a healthy landbank war-chest and a chance to buy more land for new developments.

As at May this year, Mah Sing has achieved 73 per cent of its landbanking target this year by making three key buys in Rawang, Bandar Baru Bangi and Kota Kinabalu in Sabah.

By Business Times

Mah Sing Q1 earnings up on sales volume

KUALA LUMPUR: Mah Sing Group Bhd’s earnings increased by 45.5% to RM59.9mil in the first quarter ended March 31 from RM41.17mil a year ago due to strong sales volume.

Its revenue rose 46.8% to RM457.77mil from RM311.75mil. Earnings per share were 7.20 sen from 4.95 sen.

The group has achieved property sales of slightly above RM1bil as of May 15 or 40% of its 2012 full year sales target of RM2.5bil.

The group also has strong earnings visibility, with unbilled sales of about RM2.48bil as of March 31 or 1.8 times the revenue recognised from the property development division in 2011.

Balance sheets remained strong, with high cash pile at RM581.1mil and net gearing at 0.33 as of March 31.

Some of the property development projects that contributed to revenue and profit during the year included township developments in the Klang Valley like Garden Residence, Clover @ Garden Residence, and Garden Plaza in Cyberjaya, Kinrara Residence in Puchong and Aman Perdana in Meru - Shah Alam.

The positive growth was also contributed by its niche developments such as Perdana Residence 2 in Selayang, One Legenda, Hijauan Residence, and Bayu Sekamat in Cheras, and small units of serviced residences in M-City and M-Suites in Jalan Ampang, as well as Icon Residence in Mont’ Kiara.

Group managing director cum group chief executive Tan Sri Leong Hoy Kum said the group had planned its product mix in line with the market demand, as evidenced by the strong take upin its township development of Kinrara Residence which consisted of semi-detached homes and bungalows.

“This shows that there is continued demand for landed residential properties in good location, especially in gated and guarded schemes coupled with the established infrastructure and amenities.

“The same can be said of Clover@Garden Residence which comprises mostly semi-detached homes, with limited units of superlinks and bungalows. Buyers will be able to get a better picture of the two storey and three storey semi-detached homes when our show units are completed in June,” he said in statement yesterday.

By The Star

Boustead earnings rise 22% on higher revenue

PETALING JAYA: Boustead Holdings Bhd's net profit rose 22.4% to RM144.6mil for the first quarter ended March 31, from RM112.2mil a year earlier, on higher revenue.

The diversified conglomerate saw its revenue rise to RM2.4bil from RM1.6bil a year ago.

Boustead is involved in six key sectors of the economy, namely plantations, heavy industries, properties, finance and investment, trading, and manufacturing and services.

Earnings per share of the group improved to 13.98 sen for the first quarter compared with 10.85 sen a year earlier.

Boustead said all its business divisions recorded an increase in revenue during the quarter.

Its manufacturing and trading division saw higher sales volume, resulting in a 23% increase in revenue to RM1.26bil, while its pharmaceutical division's revenue rose sharply to RM446.7mil from RM28.7mil a year ago, reflecting the consolidation of Pharmaniaga Bhd.

Boustead's plantations division, however, saw only a marginal increase in revenue to RM263.8mil from RM254.4mil previously, as lower palm product prices trimmed the gains of a higher crop. Its cumulative fresh fruit bunches crop totalled 282,171 tonnes, up 11% from a year ago, but the average palm oil price was only RM3,143 per tonne, down RM398 or 11% from RM3,541 per tonne in the corresponding period last year.

For the first quarter, the plantation division contributed a slightly lower pre-tax profit of RM92.2mil, compared with RM99mil a year ago due to lower palm product prices.

Boustead's finance and investment division posted a cumulative pre-tax profit of RM26.1mil for the first quarter, up from RM11.9mil a year ago, largely on higher profit contribution from Affin Group.

Its property division also registered higher pre-tax profit of RM40.4mil compared with RM12.2mil a year ago. This was attributable to the gains from the sale of land.

The only division that saw a deficit was its heavy industries, with a pre-tax loss of RM5.4mil due to losses at the commercial shipbuilding segment and the fact that work on the second-generation patrol vessels have yet to move into full swing.

Given its overall positive results, Boustead declared an interim dividend of 7.5 sen for the first quarter, which was an improvement from eight sen a year ago.

For the coming quarters, Bousted expects its plantation division to perform well on positive outlook for crude palm oil prices. It also expects its pharmaceutical division to continue registering good growth.

As for its property division, Boustead said it expected the Surian Residences in Mutiara Damansara, which was already 98% sold and expected to be completed in mid-2013, to be the main revenue contributor for the division.

Its hotels and retail mall operations, on the other hand, are expected to perform satisfactorily.

Earnings at its trading and manufacturing division for the remainder of the year, Boustead said, would be driven by its BHPetrol operations.

By The Star

Jaya33 Cybercentre towers ready soon

New offering: (from left) Jaya33 Sdn Bhd project director James Lee, property director Mike Kan, general manager Tan Kok Leong, and Toh at the unveiling of Jaya33 Cybercentre Tower 4 and 5.

PETALING JAYA: The developer of Jaya 33 will be offering for lease two new office towers in a couple of months. Towers 4 and 5, built at a cost of about RM200mil, will be connected to the existing Jaya33 block with a bridge for cars and pedestrians.

Its marketing director L.C. Toh said the two blocks, known as Jaya33 Cybercentre, had just received its Multimedia Super Corridor (MSC) status and boasted of several unique features. The nearest MSC-status office premises is First Avenue in Bandar Utama, Petaling Jaya.

Toh said the new blocks offered the largest commercial floor space at 19,000 sq ft per floor compared to the conventional 8,000-10,000 sq ft. This will cater to the increasingly popular open office plan concept. The floor interior is laid out to house more people and to improve space efficiency from the conventional 100 sq ft per person to 75 sq ft per person.

The floor design also incorporates additional space to accommodate any extra mechanical and electrical requirements for telecommunications and computer cabling.

The main over-riding feature of the development is the incorporation of three data centre floors in one of the blocks.

Tower 5 will come with purpose-built data centres on levels 9, 10 and 11 which will have a total of 57,000 sq ft.

Companies have the option to rent the suites of 1,450 sq ft. There are four suites to a floor.

“The floor loading is 7kPA (kilo Pascal) to withstand the weight of generators. There will be dual sources of power supply as data centres run 24 hours,” she said, adding that the centre would meet the third tier of data centre specifications.

Toh said the three floors would have specific technicalities of data centres different from normal office premises. These include self-control air-conditioning instead of a centralised one, security, power, heavy-duty floor loading, greater floor to ceiling height and other technical requirements. It will also come with fibre-optic network.

“It will be cost efficient,” said Toh, and the rates would be between RM7.50 and RM8 per sq ft excluding equipment.

“The rates are competitive,” she said, adding that there were some data centre leases which ran into double digits, including equipment and depending on power voltage requirements.

Banks, for example, have their own data centres with the information of their clients which they cannot afford to lose. Security is important.

The data centres were built in consultation with MyTeleHause Sdn Bhd and C2 Consult Sdn Bhd.

By The Star

SP Setia to to buy RM1bil worth of land in Klang Valley, Penang and Iskandar Malaysia yearly

Winner again: (from left) Liew, FIABCI world president 2011/2012 Alexander Romenanko, FIABCI Prix d’Excellence 2012 president Laszlo Gonczi and St Petersburg Committee for Construction chairman Vyacheslav Semenenko at the awards ceremony.

ST PETERSBURG (Russia): SP Setia Bhd is allocating RM1bil yearly to acquire new land for future development in the Klang Valley, Penang and Iskandar Malaysia.

President and chief executive officer Tan Sri Liew Kee Sin said replenishing its landbank in the shortest time possible would place the company in a better position compared with other developers.

He said the move was vital as the company would be able to continually launch new projects as the takeup rate for its properties was good.

“Sufficient landbank is the life-line for us (developers) without which we could not properly plan our future projects,” Liew said after SP Setia's award winning development Setia Eco Gardens in Iskandar Malaysia bagged the FIABCI Prix d'Excellence award at a ceremony held here recently.

The 2012 FIABCI Prix d'Excellence Awards saw 14 winners from seven countries, namely Malaysia, Singapore, India, Taiwan, Russia, Hungary and Switzerland.

Liew said that among Kuala Lumpur, Penang and Iskandar Malaysia, getting new land in Penang was the most difficult due to the space constraint there.

He added that those who managed to get land in Penang would go for high-density projects.

“In the Klang Valley, the next growth centres will be within the Kajang and Semenyih areas,'' Liew said.

He said the upcoming My Rapid Transit system would help boost property development projects outside the existing development centres in the Klang Valley.

With the better accessibility and connectivity within the central region once the MRT system is completed, developers have started looking for land in new development centres.

He said prospective buyers, mostly the first-time houseowners, would consider buying their first residential properties outside the existing growth centres as the prices were within their reach.

On south Johor, Liew said Iskandar Malaysia would drive the property market in Johor many years down the road based on the progress and development taking place in the corridor over the last six years.

“Iskandar Malaysia is more viable compared with other economic growth corridors in Malaysia,'' he said.

Liew said the Johor property market also benefited from Iskandar Malaysia as demand for high-end residential properties was on the rise in south Johor.

He said that apart from the Iskandar Malaysia factor, Singapore also played an important part in determining the economic growth in Johor.

“It is a well-known fact that Johor and Singapore are intertwined in economic activities during good or bad times due to their close proximity,'' said Liew.

Liew said the company was fortunate as all of its projects in southern Johor were strategically located within the flagship development of Iskandar Malaysia.

Its ongoing projects are Bukit Indah with only 5% land left for development from the entire 610.67ha, Setia Eco Gardens and Setia Business Park (383.64ha and 50% still available for future development).

Others are Setia Business Park II (107.24ha), Setia Tropika (299.46ha and 40%), Setia Indah (359.36ha and 10%) and Setia Eco Cascadia (110.70ha and 70%).

“We'll continue looking for more land in south Johor,'' he adds.

Liew said the remaining landbank would keep the company busy in Iskandar Malaysia in the next 10 to 15 years with a gross development value of RM8bil.

He said on average, land prices in Iskandar Malaysia had appreciated when the company first came 15 years ago, the asking price was RM5.50 per sq ft and now it was between RM15 and RM20 per sq ft.

Liew said the opening of the Eastern Link Dispersal Expressway in April and upgrading of several roads within Tebrau corridor had improved connectivity and accessibility.

Meanwhile, Setia Eco Gardens won its second FIABCI Prix d'Excellence Award within three years.

Setia Eco Gardens had in 2009 won the FIABCI Prix d'Excellence award in Beijing for Best Master Plan.

This year it emerges as the winner in the Specialised Project (Purpose Built) category for Eco Greens beating Green Pyramid and Ocenarium of Hungary and Taiwan's Taipei City Hall Bus Station Project.

Eco Greens is a 11.33ha park complex in Setia Eco Gardens comprising a town park and the famed Eco Gallery, which features a green wall that has become an iconic landmark for the 383.64ha township.

SP Setia is the only Malaysian developer to have won four FIABCI Prix d'Excellence awards Setia Eco Park in Shah Alam won for Best Master Plan (2007) and Best Residential (Low Rise) Development (2011) and Setia Eco Gardens for Best Master Plan (2009) and Specialised Project (Purpose Built).

By The Star

MPHB not planning to go big in real estate

KUALA LUMPUR: Multi-Purpose Holdings Bhd (MPHB), a gaming outfit, have no plans to go big in real estate but will continue its joint venture development projects with Bandar Raya Developments Bhd (BRDB).

The joint venture with property developer BRDB can easily generate more than RM4.5 billion in gross development value (GDV).

Both companies are planning to jointly develop 268ha in Mimaland (Gombak, Selangor), Rawang and Penang.

MPHB director T. Vijeyaratnam said the group would not hive off the joint venture with BRDB as part of its on-going rationalisation plan.

"We may sell some of our land parcels if we get good offers but not the joint venture with BRDB. That will continue. We expect to develop the land over eight to 10 years," he told Business Times after its shareholders meeting last week.

Vijeyaratnam said MPHB owned parcels of land in Kuala Lumpur, Penang and Johor that were worth around RM400 million to RM500 million.

MPHB owns 1,840ha of agriculture land in south Johor. The land has strong GDV potential with the ongoing developments at Iskandar Malaysia.

MPHB, which was set up in 1975, is rationalising its non-gaming asset like financial services held under Multi-Purpose Insurans Bhd, stockbroking operated by AA Anthony Securities Sdn Bhd and hotel investments.

It plans to inject the assets, which have net book value of about RM941.4 million as at end-2011, into a special purpose vehicle (SPV Capital) for listing on the Main Market of Bursa Malaysia.

Its gaming business, operated by Magnum Corp Sdn Bhd, will remain listed under MPHB.

MPHB has so far disposed of Menara Multi-Purpose for RM375 million, a hotel in Pudu for RM54 million and shares in a subsidiary company.

The disposal of the non-core assets has placed MPHB on a more even footing with Berjaya Sports Toto Bhd.

For its fiscal year 2011, MPHB posted a net profit of RM482.03 million on revenue of RM3.54 billion, of which Magnum had contributed around 75 per cent to 80 per cent and more than 80 per cent, respectively.

As of end-2011, MPHB has RM1.04 billion cash, short-term borrowings of RM53.9 million and long-term borrowings of RM2.11 billion.

MPHB closed four sen higher last Friday to RM3.19.

By Business Times

Mixed views on land acquisition in a cooler market

PETALING JAYA: Research analysts and property consultants have mixed views about developers that have been buying sizeable parcels of land recently, as the real estate market has slowed down and prices are relatively reasonable.

“It is a good time to acquire land when the market is slow. Some property developers may just be able to get a bargain price for their purchases,” said property consultancy CB Richard Ellis (M) Sdn Bhd executive director Paul Khong.

Khong told StarBiz via e-mail that real estate sellers would also be more realistic concerning prices, as there were not too many buyers around.

He pointed out that the property sector was moving slowly back to a “buyer's market” and the principle of “cash is king” would rule again.

In recent months, property developers such as Mah Sing Group Bhd, SP Setia Bhd, WCT Bhd and Hua Yang Bhd have been actively expanding their land bank particularly in the Klang Valley.

Last week, Mah Sing announced that it was paying RM333.26mil or RM18.55 per sq ft for 412 acres targeted for a mixed township near Bangi, Selangor.

SP Setia recently acquired 21.3 acres freehold land in Penang for RM185.6mil, and said this was for a mixed residential development project with a gross development value (GDV) of RM1.1bil.

Meanwhile, WCT recently acquired two parcels of 468 acres and 57 acres in the Klang Valley.

WCT executive director Choe Kai Keong had told StarBiz that the land costing RM450mil has a potential GDV of RM5.2bil.

The 468 acres in Rawang, Selangor would be developed into an integrated township with an estimated GDV of RM1.2bil, while the 57-acre in Overseas Union Garden in Kuala Lumpur is planned for a mixed development worth RM4bil.

Hua Yang also has been acquiring small parcels of land in the Klang Valley since last year.

Hua Yang, which is known for developing residential properties in the affordable segment, recently agreed to pay RM15.2mil for 21 acres of freehold land in Ipoh, Perak.

“Prices and sales of properties have obviously slowed down in 2012 as the number of buyers has been halved, with stricter bank lending guidelines. This is rather sensitive in the mid-high and high-end segments (such as above the RM3mil category) of the residential market,” said Khong.

Khong said property developers were now moving quickly to look at larger land banks to develop new projects, and were looking at cheaper locations where there was still demand from the mass market in the mid and lower-mid sections.

“Landed properties especially in the RM2mil and below categories should still do relatively well, as investors will still continue their quest but at a slightly lower segments.”

He also noted that the recent land sales were centred in secondary locations outside the city centre, but were in reasonably “good locations” and were in respect of big parcels where the developers could develop the “evergreen” landed segments again.

Khong pointed out that regardless of market conditions, property developers needed to take a long term view about their land bank.

“They have to continue to acquire land and develop, to sustain their operations and cover overhead costs.”

However, one property analyst contacted by StarBiz said there were concerns that developers might be too aggressive in expanding their land bank.

“In good times, when the property market is hot, developers can increase their gearing without much worry as they can launch and sell properties quickly. Now, the market has cooled and they should be careful about increasing their gearing too much,” he said.

Maybank Investment Bank (IB) Research said in a recent report that it took a neutral view of SP Setia's recent land buy in Penang.

“Despite its strategic location, the RM200 per sq ft land cost (in Penang) appeared to be on the high side. It is 33% to 60% higher than the RM125 to RM150 per sq ft asking or transacted prices in the area.”

However, Maybank IB noted that SP Setia's net gearing was still very healthy, as this was expected to increase to 0.14 times post-acquisition of the Penang land (from 0.08 times as at January 2012).

Meanwhile, Kenanga Research said it took a neutral view of Mah Sing's recent land buy near Bangi as the deal is expected to result in the company's net gearing reaching 0.6 times (from the 0.3 times in the fourth quarter of 2011), based on an assumed 70:30 debt-equity financing.

“This has exceeded our comfort level of 0.5 times net gearing,” said the research unit.

However, Kenanga Research said Mah Sing's expected net gearing of 0.6 times is manageable amd should fall below 0.5 times over the next two quarters, on the back of continuous billings.

By The Star