Have you been to the Immigration Department recently to renew your passport? I was surprised to hear from a family member that 45 minutes was all that she needed to renew her passport. The process of renewing a passport has indeed positively changed with the time.
I recalled in the past that it took months before one could get a passport renewed. The processing time then reduced to weeks, followed by days and eventually to 45 minutes.
The evolution of improvement in the passport renewal process is beyond doubt, impressive. It is clear proof that things of bigger scale can become more efficient with continuous improvement and commitment to improve.
The improved passport renewal process brings forth many benefits such as less waiting time, and reduction in parking and transportation costs as a second trip to the immigration department to pick up the passport is no longer required. The government, businesses, common people and ultimately, the country are beneficiaries of these successes.
This form of efficiency is greatly required in other industries including the property development industry. Sadly today, the process of getting the necessary approvals for a property development project is extremely lengthy.
In my previous article, I highlighted the negative consequences of introducing “cooling off” measures to curb or control house prices and to stifle temporarily the buying appetite of home buyers.
All these measures not only slow down the rate of production of new houses by developers but create a massive housing backlog in the near future due to the anticipated demand and supply imbalance.
It is therefore essential to increase the supply of new housing units with greater pace to meet the increasing demand and maintain property prices.
Property developers today unfortunately have to wait a year or two to obtain the necessary approvals from several authorities before a project can be launched. Then there is a further two to three years required for the construction and completion of the building. Thus, a condominium project may require a total of at least four to five years before it is ready for occupation.
According to the latest World Bank Doing Business Report, Malaysia was ranked 18th when it comes to the ease of doing business. Last year we were ranked 23rd. However, in terms of Dealing with Construction Permits, our ranking dropped to 113th from 111th last year.
The report also highlighted that Malaysian developers need to go through 22 procedures and spend 260 days in total to obtain the necessary licenses, permits and complete the required notifications and inspections.
Comparatively, Singaporean developers need to undergo 11 procedures and the whole process takes 26 days, imagine if this can be achieved in Malaysia. As for Thailand, developers are required to comply with eight procedures and approximately 157 days to go through the whole process. In the case of Indonesia, the whole process involves 13 procedures and an expected processing time of 158 days.
Our closest neighbours definitely have the edge in terms of speed to start property construction i.e. 6 to 11 months advantage.
For Malaysia to remain competitive against its neighbours and in the same breath, meet the growing demand of its population for new housing units at an affordable price, immediate steps need to be taken to improve the approval process for new housing developments in the same fashion as the immigration department.
It is good to note that the Government is looking into the matter when the Chief Secretary to the Government, Tan Sri Mohd Sidek Hassan recently held a Public Consultation with relevant parties, both public and private, to improve efficiency in the construction industry.
As for Kuala Lumpur, the City Hall is also putting in noteworthy effort to shorten the processing time by taking the lead to allow developers to submit their plans online.
When the approval time is shortened and the speed of construction enhanced, the supply of new housing units will increase in momentum and able to respond to the growing demand.
The fear of continuous inflation will be curtailed and at the same time, there will be room for reasonable price appreciation in the future.
For these aspirations to be realised, time efficiency is the essence. It is vital that the relevant agencies, authorities and the private sector set their sights in the same destination and row in the same direction. After all, if you can get a passport renewed in 45 minutes, what else can you expect to speed up?
FIABCI Asia Pacific Chairman, Datuk Alan Tong, has over 50 years of experience in property development. He was FIABCI World President in 2005/06 and was named Property Man of The Year 2010. He is also the group chairman of Bukit Kiara Properties.
By The Star
Saturday, June 9, 2012
Pengerang’s property play
There is strong potential for a property development boom in Pengerang, Johor in two years, if plans to turn the area into a major oil and gas hub progresses well, according to property consultants.
They say rental rates and real estate prices in Pengerang have increased substantially in the past 12 months, following announcements about infrastructure developments by Petroliam Nasional Bhd (Petronas) and oil and gas multi-discipline technical service provider Dialog Group Bhd.
PA International Property Consultants Sdn Bhd executive director V. Sivadas, who is based in Johor Baru, says: “The last year has seen heightened activities in terms of buying interest. There has been a substantial increase in the prices of smallholdings and other properties here.”
In Pengerang, Petronashas plans for a RM60bil integrated refinery and petrochemical complex, known as Rapid, which is expected to be commissioned by the end of 2016 while Dialog, together with Netherlands-based Royal Vopak group are developing a RM5bil independent deepwater petroleum terminal which is to be completed in the next six years.
Dialog executive chairman Ngau Boon Keat tells StarBizWeek that the natural deepwater and strategic location of Pengerang has attracted the attention of potential oil and gas investors from Taiwan and other countries.
“Pengerang has the potential to be bigger than what we anticipated. If done properly, the petrochemical industry in Pengerang and Singapore's Jurong Island (combined) can be bigger than Rotterdam in the Netherlands. In 20 years, Pengerang could surpass Rotterdam,” says Ngau.
CB Richard Ellis (Johor) Sdn Bhd director Wee Soon Chit also says real estate prices have gone up substantially since Petronas and Dialog announced their plans for Pengerang last year.
“There are some activities and speculation. For example, agricultural land in the area used to be priced at RM3 to RM4 per sq ft. The prices have almost doubled now,” he says.
Wee says the increase in prices of agricultural land around Pengerang is partially driven by the speculation of future land acquisition bydevelopers.
“This is compared with prices of agricultural land around Mersing or Johor Baru, which have gone up by 20% to 30% in the last three years, driven by increasing commodity prices.”
Meanwhile, Sivadas points out that there are proposals for Pekan Sungai Rengit, which is near to Pengerang, and its immediate hinterland of detached dwelling plots to be re-zoned for commercial purposes.
“Prices are sky-rocketing in anticipation of spillover from the massive developments in the area.”
However, Sivadas says while buying interest for real estate in Pengerang is substantial, there has not been a deluge in transactions.
“We understand that many owners are holding back. They would rather wait and see,” he says.
Sivadas points out that while Dialog's project has taken off, Petronas' Rapid is still in the pre-acquisition stage.
“Land has not been formally acquired. We understand studies are still being undertaken to determine the extent of the land to be acquired for the Rapid project.” A recent report by OSK Research notes that Dialog is making good work progress at the Pengerang terminal project, with more than 150 acres of land reclaimed to date.
“This is sufficient to build its Phase 1 centralised tankage facility, which would have a storage capacity of 1.3 million cu m,” said the research unit.
KGV International Property Consultants executive director Samuel Tan points out that in the next few years, accommodation will be needed for thousands of workers in Pengerang during the construction phase of the projects.
“The demand for accommodation is reflected in the increasing rental rates in the area, which is known as a sleepy fishing village,” he says.
Tan points out that in addition to construction workers who will stay in kongsi or long wooden houses near the construction site, there are engineers and construction professionals who will require more comfortable housing.
Sivadas says the sub-district of Pengerang which includes Pantai Timur and Tanjung Surat has a population of 48,603in 2010.
“There is expected to be much migration from other parts of Malaysia, as well as foreign workers coming into the region in view of the size of the proposed developments here. This will also fuel the property boom.”
Meanwhile, Sivadas notes that the scenario in Pengerang is different compared with the one faced by Gelang Patah and its hinterland in the early 90s when the Johor state government acquired close to 25,000 acres for the development of what is now Bandar Nusajaya, as well as to facilitate the development of the Second Link to Singapore and the Customs, Immigration and Quarantine Complex.
“A substantial amount of land was also acquired for the Port of Tanjung Pelepas. While Nusajaya has the benefit of the link to Singapore as its strongest selling point, the Pengerang region is to be led by the oil and gas industry,” he says.
According to Sivadas, a study of the landbank in Pengerang will show the predominantly smallholding nature of land there, with the exception of a major oil palm plantation (the 4,553-acre Pengerang Estate owned by Multi-Purpose Holdings Bhd to the west of Sungai Rengit, and east of Pularek, the Royal Malaysian Navy's recruit training centre).
“We believe this parcel (Pengerang Estate) will be developed in the near future, dependent on the speed and scale of the oil and gas developments in Pengerang. Further north of Pengerang Estate is Sebana Cove, which is a marina, golf course and residential development with landbank for development too.”
Sivadas says it is possible that the Johor state government may acquire land in the same manner that it did for Bandar Nusajaya and Port of Tanjung Pelepas at Gelang Patah in the 90s.
“Substantial smallholdings could be acquired, for Petronas's Rapid, as well as for re-parcelling of blocks of smallholdings for development,” says Sivadas.
Leisure and tourism
Last July, Johor Mentri Besar Datuk Abdul Ghani Othman said Desaru would focus on the leisure, tourism and hospitality sectors with Khazanah Nasional Bhd being the main driving force behind the development.
StarBiz quoted sources as saying that in the pipeline was the construction of four international-class hotels managed by luxury hotel groups and a new 27-hole world-class golf course with a combined investment of RM1.3bil.
Other components in Desaru's development include the two theme parks incorporating tropical, eco-adventure and water features and a convention centre to cater to the meeting, incentive, convention and exhibition segment.
Sivadas says the developments within Desaru will tie in with the oil and gas developments in Pengerang.
“With an expected huge increase of skilled and expatriates over the next few years, residential and resort developments will enjoy the spill-over effects.”
Sivadas points out that the Desaru development project by Khazanah covers an area of 4,113.29 acres along a 17km coastline fronting the South China Sea.
“Work is underway on the 27-hole golf course designed by Ernie Els, and another 18-hole course designed by Vijay Singh, as well as hotels and infrastructure works. At least three major international chains of hotels and resorts are committed thus far. A themepark is also earmarked,” he says.
Sivadas notes that existing hotels and resorts along the Desaru coast are in high demand especially during festive and school holidays.
“The completion of the Senai - Desaru highway (in mid-2011) and its bridge over Sungai Johor has made the big difference.”
However, Sivadas says there has not been many transactions of land within the Desaru belt.
“Many are either plantations held by government-linked companies or related parties, or alienated smallholdings held by individuals. With the strong prices for palm oil, we don't expect a rush by major land owners to develop their landbank. It may be prudent to submit preliminary applications for development while reaping the benefits of the strong oil palm prices.”
Concerning property developments within the Sungai Rengit and Pengerang area, Sivadas says there are hardly any organised large-scale projects.
“The closest big organised scheme here is Taman Sungai Ringgit which was first launched in the 80s, comprising 264 bungalow plots. Though some land was sold then, the plots remain undeveloped. With all the developments at Pengerang now, the owners here are expecting to finally see good returns on their investments.”
Sivadas says in a smaller scheme called Taman Rengit Jaya, double-storey terrace houses were sold at RM163,000 last year.
“Subsequently, a sub-sale of a unit was done at RM195,000 which translated into a price increase of 20% within a year.”
Tan also says the property market in Pengerang and nearby areas such as Pekan Sungai Rengit, Teluk Ramunia and Desaru is likely to heat up in one or two years.
“Property developers must mitigate their risks. Once the situation is seen to be more concrete in terms of infrastructure being set up, solid progression of projects and subsequently, adequate demand for housing and commercial areas, the property developers will make their moves,” Tan notes.
Tan points out that the travel time to Pengerang has also been shortened with the Senai-Pasir Gudang-Desaru highway.
“The travel time to Pengerang, from Johor Baru, is less than 45 minutes now compared with two hours before.”
However, Wee is cautious regarding the prospects of a property boom in Pengerang and nearby Pekan Sungai Rengit.
“Without a doubt, there will be a rise in property prices and increased property developments in the area once the Petronas and Dialog projects take off. But the question remains about whether the influx of high-income workers or professionals for the oil and gas, or petrochemical industry in the area can achieve the critical mass necessary for a major property boom.”
Wee says a good example is Kertih, Terengganu where Petronas has an integrated petrochemical complex.
“Perhaps Pengerang will become another Kertih in terms of size.”
By The Star
They say rental rates and real estate prices in Pengerang have increased substantially in the past 12 months, following announcements about infrastructure developments by Petroliam Nasional Bhd (Petronas) and oil and gas multi-discipline technical service provider Dialog Group Bhd.
PA International Property Consultants Sdn Bhd executive director V. Sivadas, who is based in Johor Baru, says: “The last year has seen heightened activities in terms of buying interest. There has been a substantial increase in the prices of smallholdings and other properties here.”
In Pengerang, Petronashas plans for a RM60bil integrated refinery and petrochemical complex, known as Rapid, which is expected to be commissioned by the end of 2016 while Dialog, together with Netherlands-based Royal Vopak group are developing a RM5bil independent deepwater petroleum terminal which is to be completed in the next six years.
Dialog executive chairman Ngau Boon Keat tells StarBizWeek that the natural deepwater and strategic location of Pengerang has attracted the attention of potential oil and gas investors from Taiwan and other countries.
“Pengerang has the potential to be bigger than what we anticipated. If done properly, the petrochemical industry in Pengerang and Singapore's Jurong Island (combined) can be bigger than Rotterdam in the Netherlands. In 20 years, Pengerang could surpass Rotterdam,” says Ngau.
CB Richard Ellis (Johor) Sdn Bhd director Wee Soon Chit also says real estate prices have gone up substantially since Petronas and Dialog announced their plans for Pengerang last year.
“There are some activities and speculation. For example, agricultural land in the area used to be priced at RM3 to RM4 per sq ft. The prices have almost doubled now,” he says.
Wee says the increase in prices of agricultural land around Pengerang is partially driven by the speculation of future land acquisition bydevelopers.
“This is compared with prices of agricultural land around Mersing or Johor Baru, which have gone up by 20% to 30% in the last three years, driven by increasing commodity prices.”
Meanwhile, Sivadas points out that there are proposals for Pekan Sungai Rengit, which is near to Pengerang, and its immediate hinterland of detached dwelling plots to be re-zoned for commercial purposes.
“Prices are sky-rocketing in anticipation of spillover from the massive developments in the area.”
However, Sivadas says while buying interest for real estate in Pengerang is substantial, there has not been a deluge in transactions.
“We understand that many owners are holding back. They would rather wait and see,” he says.
Sivadas points out that while Dialog's project has taken off, Petronas' Rapid is still in the pre-acquisition stage.
“Land has not been formally acquired. We understand studies are still being undertaken to determine the extent of the land to be acquired for the Rapid project.” A recent report by OSK Research notes that Dialog is making good work progress at the Pengerang terminal project, with more than 150 acres of land reclaimed to date.
“This is sufficient to build its Phase 1 centralised tankage facility, which would have a storage capacity of 1.3 million cu m,” said the research unit.
KGV International Property Consultants executive director Samuel Tan points out that in the next few years, accommodation will be needed for thousands of workers in Pengerang during the construction phase of the projects.
“The demand for accommodation is reflected in the increasing rental rates in the area, which is known as a sleepy fishing village,” he says.
Tan points out that in addition to construction workers who will stay in kongsi or long wooden houses near the construction site, there are engineers and construction professionals who will require more comfortable housing.
Sivadas says the sub-district of Pengerang which includes Pantai Timur and Tanjung Surat has a population of 48,603in 2010.
“There is expected to be much migration from other parts of Malaysia, as well as foreign workers coming into the region in view of the size of the proposed developments here. This will also fuel the property boom.”
Meanwhile, Sivadas notes that the scenario in Pengerang is different compared with the one faced by Gelang Patah and its hinterland in the early 90s when the Johor state government acquired close to 25,000 acres for the development of what is now Bandar Nusajaya, as well as to facilitate the development of the Second Link to Singapore and the Customs, Immigration and Quarantine Complex.
“A substantial amount of land was also acquired for the Port of Tanjung Pelepas. While Nusajaya has the benefit of the link to Singapore as its strongest selling point, the Pengerang region is to be led by the oil and gas industry,” he says.
According to Sivadas, a study of the landbank in Pengerang will show the predominantly smallholding nature of land there, with the exception of a major oil palm plantation (the 4,553-acre Pengerang Estate owned by Multi-Purpose Holdings Bhd to the west of Sungai Rengit, and east of Pularek, the Royal Malaysian Navy's recruit training centre).
“We believe this parcel (Pengerang Estate) will be developed in the near future, dependent on the speed and scale of the oil and gas developments in Pengerang. Further north of Pengerang Estate is Sebana Cove, which is a marina, golf course and residential development with landbank for development too.”
Sivadas says it is possible that the Johor state government may acquire land in the same manner that it did for Bandar Nusajaya and Port of Tanjung Pelepas at Gelang Patah in the 90s.
“Substantial smallholdings could be acquired, for Petronas's Rapid, as well as for re-parcelling of blocks of smallholdings for development,” says Sivadas.
Leisure and tourism
Last July, Johor Mentri Besar Datuk Abdul Ghani Othman said Desaru would focus on the leisure, tourism and hospitality sectors with Khazanah Nasional Bhd being the main driving force behind the development.
StarBiz quoted sources as saying that in the pipeline was the construction of four international-class hotels managed by luxury hotel groups and a new 27-hole world-class golf course with a combined investment of RM1.3bil.
Other components in Desaru's development include the two theme parks incorporating tropical, eco-adventure and water features and a convention centre to cater to the meeting, incentive, convention and exhibition segment.
Sivadas says the developments within Desaru will tie in with the oil and gas developments in Pengerang.
“With an expected huge increase of skilled and expatriates over the next few years, residential and resort developments will enjoy the spill-over effects.”
Sivadas points out that the Desaru development project by Khazanah covers an area of 4,113.29 acres along a 17km coastline fronting the South China Sea.
“Work is underway on the 27-hole golf course designed by Ernie Els, and another 18-hole course designed by Vijay Singh, as well as hotels and infrastructure works. At least three major international chains of hotels and resorts are committed thus far. A themepark is also earmarked,” he says.
Sivadas notes that existing hotels and resorts along the Desaru coast are in high demand especially during festive and school holidays.
“The completion of the Senai - Desaru highway (in mid-2011) and its bridge over Sungai Johor has made the big difference.”
However, Sivadas says there has not been many transactions of land within the Desaru belt.
“Many are either plantations held by government-linked companies or related parties, or alienated smallholdings held by individuals. With the strong prices for palm oil, we don't expect a rush by major land owners to develop their landbank. It may be prudent to submit preliminary applications for development while reaping the benefits of the strong oil palm prices.”
Concerning property developments within the Sungai Rengit and Pengerang area, Sivadas says there are hardly any organised large-scale projects.
“The closest big organised scheme here is Taman Sungai Ringgit which was first launched in the 80s, comprising 264 bungalow plots. Though some land was sold then, the plots remain undeveloped. With all the developments at Pengerang now, the owners here are expecting to finally see good returns on their investments.”
Sivadas says in a smaller scheme called Taman Rengit Jaya, double-storey terrace houses were sold at RM163,000 last year.
“Subsequently, a sub-sale of a unit was done at RM195,000 which translated into a price increase of 20% within a year.”
Tan also says the property market in Pengerang and nearby areas such as Pekan Sungai Rengit, Teluk Ramunia and Desaru is likely to heat up in one or two years.
“Property developers must mitigate their risks. Once the situation is seen to be more concrete in terms of infrastructure being set up, solid progression of projects and subsequently, adequate demand for housing and commercial areas, the property developers will make their moves,” Tan notes.
Tan points out that the travel time to Pengerang has also been shortened with the Senai-Pasir Gudang-Desaru highway.
“The travel time to Pengerang, from Johor Baru, is less than 45 minutes now compared with two hours before.”
However, Wee is cautious regarding the prospects of a property boom in Pengerang and nearby Pekan Sungai Rengit.
“Without a doubt, there will be a rise in property prices and increased property developments in the area once the Petronas and Dialog projects take off. But the question remains about whether the influx of high-income workers or professionals for the oil and gas, or petrochemical industry in the area can achieve the critical mass necessary for a major property boom.”
Wee says a good example is Kertih, Terengganu where Petronas has an integrated petrochemical complex.
“Perhaps Pengerang will become another Kertih in terms of size.”
By The Star
Dijaya buys boutique hotel for RM54m
KUALA LUMPUR: Property developer Dijaya Corp Bhd is buying a boutique hotel on a piece of freehold land in Kuala Lumpur from Multi-Purpose Holdings Bhd for RM54 million cash.
The hotel, built on a 1,106 sq m land, is located just two minutes walk from Tung Shin Hospital and five minutes walk away from China town.
“The proposed acquisition will provide the group with stable, long-term and sustainable income stream. With the prime location of the property, the group believes that the property will be invaluable for the group to improve its profitability and thus shareholders’ value,” said the company in its filing to Bursa Malaysia.
By Business Times
The hotel, built on a 1,106 sq m land, is located just two minutes walk from Tung Shin Hospital and five minutes walk away from China town.
“The proposed acquisition will provide the group with stable, long-term and sustainable income stream. With the prime location of the property, the group believes that the property will be invaluable for the group to improve its profitability and thus shareholders’ value,” said the company in its filing to Bursa Malaysia.
By Business Times
Battersea set to power Sime, SP Setia shares
KUALA LUMPUR: Sime Darby Bhd and SP Setia Bhd’s shares are poised for a significant upside once details of the London’s Battersea Power Station deal are available, analysts said.
The companies yesterday rose as as high as 1.3 per cent after they emerged as the preferred bidders for the site.
Lack of concrete details on the joint-venture bid may have capped the upside, analysts said.
Sime Darby reached a high of RM9.80 before closing marginally lower at RM9.69 than its Thursday’s close of RM9.71, while SP Setia gained 1 sen to end at RM3.76.
There were more than 8.7 million Sime Darby shares traded and less than 50,000 SP Setia shares traded yesterday.
Most analysts viewed the announcement as positive news to the
companies. However, they needed more details before a proper analysis can be made on how the project can benefit the companies’ longterm earnings.
“Generally, we are positive on the property exposure in London given the gradually improving market conditions and resulting economic activities.
“We maintain our ‘outperform’ ratings on both Sime Darby and SP Setia pending further concrete details about the project,” Public Investment Bank said in a report yesterday.
The research house has a target price of RM11.21 and RM4.40 on Sime Darby and SP Setia, respectively.
As at yesterday, there were 20 research houses with a “buy” call and nine research houses with a “hold” tag on Sime Darby.
There were seven analysts recommending “buy”, 14 with “hold” and three “sell” calls on SP Setia.
On Thursday, SP Setia and Sime Darby jointly announced that they had been picked by the joint administrators and receivers of the 15-hectare site in London as the preferred bidder.
They had signed an exclusivity agreement with the joint administrators and receivers to buy the site for STG400 million or about RM2 billion.
Both companies have up to 28 days to do further due diligence as well as negotiate the contract for the acquisition. It means that they will have access to the finer details about the site, including its legal and planning status, upon which they can make a decision as to whether their plans are financially viable.
At the end of the four weeks, they will make a decision as to whether to go ahead.
"At this juncture, the equity share of SP Setia and Sime Darby is still unclear, but with both companies having Pemodalan Nasional Bhd (PNB) as their largest shareholder, we believe it is likely that PNB will take up a direct equity stake in the potential joint-venture.
"However, we do not rule out the possibility of other investors participating in the site's redevelopment," OSK Research said.
Meanwhile, analysts pointed out that the decline in Sime Darby's share price yesterday may be partly due to rising pessimism on crude palm oil prices over the next 12 months.
LMC International Ltd chairman James Fry reportedly said palm oil may extend a decline from its lowest level in seven months as a drop in crude oil prices reduces the appeal of the tropical oil for use in biofuels.
By Business Times
The companies yesterday rose as as high as 1.3 per cent after they emerged as the preferred bidders for the site.
Lack of concrete details on the joint-venture bid may have capped the upside, analysts said.
There were more than 8.7 million Sime Darby shares traded and less than 50,000 SP Setia shares traded yesterday.
Most analysts viewed the announcement as positive news to the
companies. However, they needed more details before a proper analysis can be made on how the project can benefit the companies’ longterm earnings.
“Generally, we are positive on the property exposure in London given the gradually improving market conditions and resulting economic activities.
“We maintain our ‘outperform’ ratings on both Sime Darby and SP Setia pending further concrete details about the project,” Public Investment Bank said in a report yesterday.
The research house has a target price of RM11.21 and RM4.40 on Sime Darby and SP Setia, respectively.
As at yesterday, there were 20 research houses with a “buy” call and nine research houses with a “hold” tag on Sime Darby.
There were seven analysts recommending “buy”, 14 with “hold” and three “sell” calls on SP Setia.
On Thursday, SP Setia and Sime Darby jointly announced that they had been picked by the joint administrators and receivers of the 15-hectare site in London as the preferred bidder.
They had signed an exclusivity agreement with the joint administrators and receivers to buy the site for STG400 million or about RM2 billion.
Both companies have up to 28 days to do further due diligence as well as negotiate the contract for the acquisition. It means that they will have access to the finer details about the site, including its legal and planning status, upon which they can make a decision as to whether their plans are financially viable.
At the end of the four weeks, they will make a decision as to whether to go ahead.
"At this juncture, the equity share of SP Setia and Sime Darby is still unclear, but with both companies having Pemodalan Nasional Bhd (PNB) as their largest shareholder, we believe it is likely that PNB will take up a direct equity stake in the potential joint-venture.
"However, we do not rule out the possibility of other investors participating in the site's redevelopment," OSK Research said.
Meanwhile, analysts pointed out that the decline in Sime Darby's share price yesterday may be partly due to rising pessimism on crude palm oil prices over the next 12 months.
LMC International Ltd chairman James Fry reportedly said palm oil may extend a decline from its lowest level in seven months as a drop in crude oil prices reduces the appeal of the tropical oil for use in biofuels.
By Business Times
Sales pitch from Canada
LAST week, a group of fairly young people organised a lunch at a club to promote and market some townhouses in Alberta, Canada. There are a few things about the investment propostion that comes across as rather interesting. Whether it will be profitable or not is another matter. The objective of this article is, therefore, to highlight the different types of property-investment offerings that are entering the market as a result of Asia being rather buoyant, despite the woes in US and Europe.
First, it was the first time that properties as far away as Canada are being promoted this way. Usually, agents will just opt for an advertisement. Vision International Properties did that, besides other things.
One may ask, why Canada? Seems so far away when there are properties in Britain, Australia and Singapore to choose from. Malaysians generally invest in British and Australian property because they have children studying in these countries, or because they themselves studied there. There is, therefore, the emotional and sentimental ties. As for Singapore, it is just an hour away by plane and they frequent the city state and so they decide to buy something in Singapore.
The other thing interesting about this Canadian proposition is that, the director of Vision International is a Malaysian who studied in Canada, worked in an international consultancy firm there for about a year before deciding to go full time into property investment with a partner. Virata Gamany, the Malaysian director has now decided to return to Malaysia to start a branch here, besides other branches in Singapore and China.
Thirdly, Virata, 28, is offering an investment proposition which, thus far, is fairly new to Malaysian residential buyers, to a degree.
Unlike local Malaysian agents representing foreign developers and house builders to promote an overseas property development here, which they sell to Malaysians and other investors in other parts of Asia, Virata and his partners are neither agents nor developers.
They instead bulk purchase into a project in Canada, which they then sell to Malaysians and other investors. It is very much like the Middle-Eastern investors who bought en bloc units in the KLCC area and then sold the units to other buyers at a lower rate than the developer. They are able to do this because they buy multiple units.
In the case of Vision International, it is uncertain whether the properties come at na discounted rate from the developer's price. But they will manage the property on behalf of investors.
In other words, one buy into their project, in this case, Chestermere Manor, which comprises 96 units of townhouses in Calgary, Alberta, not to stay, but to be rented out at a gross yield of between 7% and 8% a year.
He said they will help investors enter into the market easier by assisting with bank loans and legal paperwork and manage the properties and look for tenants. Investors will have to consider the cost of this list of services as it will be factored into the price of the house, or in some other ways.
A two-bedroom unit is priced at C$218,000 with a downpayment of C$76,300. Virata has put the rent at C$1,300 and a string of other fees like property tax, management fee, mortgage expense and condominium fee.
A client can exit anytime because it is a direct ownership, he says.
Virata says Canada is rather low-profiled compared with other destinations but this does not mean a shortage of opportunities. The project he is offering sits on 10 acres, of which about half will be occupied by townhouses. These will be the more affordable alternative to the more pricey three-storey landed units. Vision, he says, is buying nine blocks, of which eight blocks, comprising 96 units, will be sold to investors. They will keep the ninth for investment.
Chestermere Manor is their 19th property investment.
“Our investments are focussed on apartment and condominium units with rentals that are within the range of the average Canadian family. Such properties tend to yield better returns and are less risky,” he says.
There will be regular project updates. Currently, each of the blocks is being built at different stages with the last block expected to be completed in 2014.
Virata says this is investment proposition is neither a Reit (real estate investment trust) nor a land-banking, which had some Malaysian investors losing their life savings earlier this year.
He also suggests investors see the properties for themselves and Vision International will pay for the flight ticket.
“We find it odd that less than 5% of investors ask to see the properties and if not for us providing the return flight tickets, they do not do so.”
While Virata and his team offer a host of conveniences, a property consultant agrees that dealing with one party in this case a property investment company may seem more appealing than buying from an agent who represents a developer, and having to engage letting agents to rent out the unit.
“There is the issue of not knowing who to turn to in the event the desired situation does not materialise for whatever reason, for example, a project not taking off. In the case of having to deal with an agent who represents a developer, and a letting agents, there is a clear separation of duties and responsibilities,” he says.
While Virata's investment proposition may appeal to some, as with other property-related investments abroad, it is worthwhile to note that the low interest rates around the world today has been a major driving force for such investments.
Last week, wire service Bloomberg highlighted the dangers of Canadian housing debt levels.
Canada Mortgage & Housing Corp (CMHC), which called on home buyers to guard against taking on too much debt, cautioned buyers to exercise prudence.
“Interest rates are at historic lows and they are certain to rise in the future. In this context, it is important that they not get overextended,” a CMHC's representative says.
Bank of Canada Governor Mark Carney has said that record consumer debt loads are the biggest domestic economic risk, and housing starts reached the highest since 2007 last month.
Finance Minister Jim Flaherty's March 29 budget put CMHC's securitisation and insurance operations under oversight by the country's banking regulator, with Flaherty citing the economic risks posed by the housing boom.
“Strong labour market conditions will continue to drive the construction of new homes, but some diminution of the current robust pace of housing starts is expected later this year and next year,” CMHC's report says.
Housing is also being supported by a five-year mortgage rate that has been at or close to record lows this year. The Bank of Canada said last month it may need to raise its 1% benchmark overnight rate because of faster-than-expected growth and inflation.
The agency said it had mortgage insurance in force worth C$570bil (US$554bil) at the end of March, up 10% from a year earlier. Canadian law requires borrowers with less than a 20% down payment to have their mortgages insured and CMHC has a C$600bil limit on its insurance portfolio.
CMHC said in January it had begun rationing bulk insurance for lenders to keep from exceeding the limit.
All these represent red flags that potential Malaysian investors need to be aware of. It is difficult to monitor an investment that is so far away, and laws and legal system may be different and the way things are done may vary considerably.
By The Star
Changes in traffic flow
Project contractor System Engineering & Construction Sdn Bhd representative, who refused to be named, said road users would begin experiencing major traffic flow changes temporarily.
“This is a temporary traffic diversion until Sept 14 when the elevated portions are completed and ready for use,” he said.
He added that the traffic diversions (see graphic) was needed to place the cranes at the site.
One of the major changes to take place is the relocation of the Jalan Nicholas/Jalan Cheras traffic lights further down the road near the church.
This traffic light will facilitate U-turns for drivers from Jalan Pudu to Jalan Chan Sow Lin and Jalan Nicholas to Jalan Chan Sow Lin and Jalan Pudu.
Those from Jalan Chan Sow Lin will only be able to make a left turn towards Jalan Pudu where they will have to take the Pudu roundabout to get to Jalan Tun Razak or Jalan Cheras.
Drivers along Jalan Tun Razak will be diverted onto Jalan Nicholas, that will be converted into a one-way road for this period.
Finally, those from Jalan Pudu will be able to go straight towards Jalan Cheras but to get to Jalan Chan Sow Lin, they will have to go along Jalan Tun Razak, Jalan Nicholas and make the U-turn at the relocated traffic lights in Jalan Cheras.
The representative went on to say that they will be working round the clock to meet the deadline.
“Once the elevated portion is completed, we will be concentrating on the Jalan Pudu/Jalan Cheras underpass. Right now, we are preparing a report to Kuala Lumpur City Hall (DBKL) to inform them of a height problem for the underpass,” he said.
He said the underpass they were constructing had a difference height clearance than the one that already exists along Jalan Pudu leading into the city.
“The underpass we are building has a 4.5m height clearance, enough for all vehicles but our contract states we need to increase this to 5.2m. The lower clearance of the existing underpass is 3.7m and there are concerns certain vehicles may not be able to pass through,” he said.
Their suggestion to solve this is to either abandon the need to further increase the new underpass’ height clearance or increase the height clearance of the old underpass.
He also explained the reasons for the project’s three-year completion delay since August 2009.
“We were still going through land acquisition for the project until August last year. So far, we have acquired more than 20 shophouses.
“There was also a number of underground utility pipes we had to deal with,” he said.
He added that they had to get the approval of the Smart management as part of the tunnel ran under their project and this took two years.
“So far, our cost overrun is about RM5mil.” he said, adding that they have already received two contract extensions for the project and are preparing to apply for a third as the current one expires on Sept 14.
Cheras MP Tan Kok Wai said the project costs RM100mil, including land acquisition.
“This project is meant to provide a better traffic dispersal system and ease the bottleneck on this interchange that has caused massive congestion during peak hours.
“I have received many complaints from my constituents on this project so I hope it will be completed soon,” he said.
By The Star
Friday, June 8, 2012
SP Setia CEO expects London Battersea gross development value to reach RM40bil
SPEAKING to The Star executive editor ERROL OH on the sidelines of the Ernst & Young World Entrepreneur Of The Year award ceremony in Monte Carlo, Monaco, Tan Sri Liew Kee Sin, president and chief executive officer of SP Setia, said that it will take 10 to 15 years to develop the project and that he expects the gross development value to reach around £8bil (RM40bil). Here are excerpts from that interview.
STARBIZ: Could you please comment on the deal?
Liew: We have signed an exclusive agreement for 28 days to go into detailed negotiation on Battersea. The price is confirmed £400mil (RM1.97bil). Most of the heads of agreement have been agreed upon.
We are committed to maintaining the existing approvals given by City of London, principally the local council where the project is. We are also committed to maintaining the iconic structure of the Battersea Power Station.
That is crucial because as in many developed countries, the local sentiments are very, very important. The structure has been there for a long time. I think it's good that it becomes a symbol of the project.
So, as far as branding of the location is concerned, it's already there. You don't have to tell the whole world where the project is. Just need to say Battersea Power Station and the whole world knows where the project is.
We also support the council's proposal to extend the Northern Line (of the London Underground Tube). The Northern Line is key. If the project was smaller, we wouldn't need the extension. But a project of the scale of Battersea needs the extension. We're talking about almost eight million square feet of gross space in that area.
There would be about 3.5 million sq ft of apartments and 500,000 sq ft of social housing. The balance is retail, offices, car park space and so on. We are committed to contributing a proportionate sum for the Northern Line extension. The indicative figure we have been informed is about £200mil.
This is a major redevelopment project for London. The local council wants the Battersea Power Station project to regenerate the whole area.
The key for us is to relook the planning approvals already secured for the project by the previous owner, tweak it based on the experience we have while maintaining the good elements. The idea is to use Battersea Power Station as a symbol of regeneration.
We have to be very innovative so as to take advantage of an existing icon. We don't have to reinvent the wheel but we want the project to be unique and incorporate a bit of Asian influence. We expect a major portion of our customers to come from Asia. We want to promote both the East and West.
As for SP Setia, the project is part of our ambition to be a real multinational corporation.
We're happy to work with a like-minded company like Sime Darby, which had gone overseas well ahead of us. With the combination of us and Sime Darby, we have a good chance of succeeding with this project.
Why choose to partner Sime Darby?
This project will have almost £8bil in gross development value. Not many Malaysian companies can take a project of such scope, complexity and size, including SP Setia, on its own.
Sime Darby has the international exposure and global branding and has done massive townships in Malaysia. We think it is a good partner, with the combination of the two companies' resources. It has changed tremendously in the last two years, after Datuk Mohd Bakke Salleh became the chief executive officer.
For now, it's a 50:50 joint venture. A joint-venture company will be formed. With the support of the SP Setia customer base and Sime Darby's customer base, hopefully we will be able to succeed with the project.
What will be the items that will be important factors during the 28-day period?
We have been looking at this deal for many months. We have actually done most of the technical due diligence. Over the next 28 days, the key factor is that the joint administrators and receivers (two partners of Ernst & Young LLP) need the time to resolve any possible issues with the previous owner. For us, if they agree tomorrow, we can sign the agreement straight away.
On our part, we're almost there. We support the council's proposal for the Northern Line extension. We accept the planning approvals that have been given. We've also done a detailed study on how to maintain the iconic structure.
It's now more about finetuning the masterplanning and what we can do in giving our input. We'll tweak it a bit to make it really different.
People always question our ability to undertake the project because we've never done something like this. But with our track record in Malaysia how careful we have planned and executed our projects and have done about implementing the eco theme in the projects this gives us enough confidence in ourselves.
Our success with the projects in Singapore and Melbourne also gives us a lot of confidence that the Malaysians who want to invest in property in London will come along with us, and hopefully the Chinese, Singaporeans and other South-East Asians. Malaysians are quite affluent and buy property all over the world, what more from people they already know.
Given the scale of the project, aren't you also looking to draw in the local buyers (in the United Kingdom)?
Yes, we're aiming to have 50% local buyers. But as you know, there's a downturn in the United Kingdom, so the locals may not invest heavily in the UK property market right now. There's the risk that the local demand over the next two years will be marginal.
So we need to drive the demand for the project in Asia first. Hopefully, that will give us enough momentum and volume to take care of the land and infrastructure costs.
Because of the downturn in Europe, most of the banks are reluctant to lend to developers. So we will get our funding from Malaysia for now. The key issue is the funding. We are fortunate that the names of SP Setia and Sime Darby are able to secure funding.
Just to clarify, the property is more than just the power station, right?
The power station takes up 15 acres of the total 40 acres of the site. So we will build around the power station. It will be the magnet that attracts people. The initial idea is to convert the station into space for conventions, offices and food and beverage.
It will take 10 to 15 years to develop the project, depending on the strength of the market.
The reason we are willing to pay for the land is because the approvals are already there. We don't have to spend another five years getting the approvals.
My job is to understand the market. I'm confident that London has the talent the planners and architects. So the main task for us is to figure out where to go to find our market, how do we get market share.
By The Star
SP Setia, Sime Darby are preferred bidders for Battersea Power Station
PETALING JAYA: Malaysian property giants SP Setia Bhd and Sime Darby Property Bhd are now the preferred bidders for the highly-coveted Battersea Power Station in London.
They have outbid rivals from parties such as Russian tycoon Roman Abramovich, whose Chelsea football club is located on the other side of the river.
SP Setia and Sime Darby Property's joint bid is RM1.96bil (£400mil) to redevelop the 15.7ha prized property.
Both companies have entered into an exclusivity agreement with the vendors of the property, under which they will have 28 days to conduct contract negotiations and due diligence. During this period, the vendors will not entertain any other bid.
Speaking to The Star on the sidelines of the Ernst & Young World Entrepreneur Of The Year award in Monte Carlo, Monaco, SP Setia president and chief executive officer Tan Sri Liew Kee Sin said the project would have a gross development value of £8bil (RM40bil) with both firms in a 50:50 joint venture.
Despite the hefty price, both SP Setia and Sime Darby Property are said to be comfortable with the project's potential returns and gross development value due to its prime location along the Thames river.
“The project is part of our ambition to be a real multinational corporation. With the combination of us and Sime Darby, we have a good chance of succeeding,” Liew said.
It is understood that the Malaysian bid was chosen not only for its attractive pricing but also its development plans as well as ability to fund it.
The Star had earlier reported that the Employees Provident Fund (EPF) might likely emerge as a partner to the SP Setia-Sime Darby Property joint venture and those familiar with the situation said its participation could come at a later stage.
Liew said “the idea was to use the power station as a symbol of regeneration” for London.
The power station is a famed part of London's skyline and was used as cover shots on Pink Floyd's 1977 album Animals and The Beatles' 1965 movie Help!
Its cultural influence has led the British government to list it as a Grade II status building, meaning “particularly important building of more than special interest”.
SP Setia and Sime Darby Property have pledged to preserve the iconic facade of the Battersea power plant, which was built in the 1930s and closed in 1983.
In a joint statement yesterday, the two firms said they had committed to the construction of a new underground station as part of the proposed extension of the Northern Line (part of the London Under-ground's Tube network), which shall pass by the site.
By The Star
They have outbid rivals from parties such as Russian tycoon Roman Abramovich, whose Chelsea football club is located on the other side of the river.
SP Setia and Sime Darby Property's joint bid is RM1.96bil (£400mil) to redevelop the 15.7ha prized property.
Both companies have entered into an exclusivity agreement with the vendors of the property, under which they will have 28 days to conduct contract negotiations and due diligence. During this period, the vendors will not entertain any other bid.
Speaking to The Star on the sidelines of the Ernst & Young World Entrepreneur Of The Year award in Monte Carlo, Monaco, SP Setia president and chief executive officer Tan Sri Liew Kee Sin said the project would have a gross development value of £8bil (RM40bil) with both firms in a 50:50 joint venture.
Despite the hefty price, both SP Setia and Sime Darby Property are said to be comfortable with the project's potential returns and gross development value due to its prime location along the Thames river.
“The project is part of our ambition to be a real multinational corporation. With the combination of us and Sime Darby, we have a good chance of succeeding,” Liew said.
It is understood that the Malaysian bid was chosen not only for its attractive pricing but also its development plans as well as ability to fund it.
The Star had earlier reported that the Employees Provident Fund (EPF) might likely emerge as a partner to the SP Setia-Sime Darby Property joint venture and those familiar with the situation said its participation could come at a later stage.
Liew said “the idea was to use the power station as a symbol of regeneration” for London.
The power station is a famed part of London's skyline and was used as cover shots on Pink Floyd's 1977 album Animals and The Beatles' 1965 movie Help!
Its cultural influence has led the British government to list it as a Grade II status building, meaning “particularly important building of more than special interest”.
SP Setia and Sime Darby Property have pledged to preserve the iconic facade of the Battersea power plant, which was built in the 1930s and closed in 1983.
In a joint statement yesterday, the two firms said they had committed to the construction of a new underground station as part of the proposed extension of the Northern Line (part of the London Under-ground's Tube network), which shall pass by the site.
By The Star
UK project allows SP Setia, Sime to show off expertise
PETALING JAYA: Analysts are positive on the joint bid of SP Setia Bhd and Sime Darby Property Bhd being identified as the preferred bidder for the Battersea Power Station in the United Kingdom, as they say it is a rare opportunity for Malaysian companies to show off their expertise overseas.
Sime Darby Bhd was up 3 sen to RM9.71 on volume of 6.86 million shares yesterday while SP Setia was down 4 sen to RM3.75 on volume of 244,100 shares.
“That piece of land is in a very prime location in London.
“There were many big and reputable names which put in bids for the land. We must commend the deal-making capabilities of these Malaysian companies,” said a property analyst.
The Battersea Station is about 3.5km from the Houses of Parliament and has been vacant for almost three decades.
The 38-acre site sits on the south bank of River Thames. It was put on sale in February after its owners failed to pay lenders more than £500mil (RM2.47bil).
SP Setia and Sime Darby Property have entered into an exclusivity agreement with joint administrators and receivers Alan Bloom and Alan Hudson of Ernst & Young LLP, who acted on behalf of the owners of the property, to acquire the site for £400mil (about RM2bil).
Sime Darby and SP Setia will each hold 50% equity in the joint-bid consortium.
“The capital expenditure for the land will be about RM1bil per company if the equity stake is 50:50 between Sime Darby and SP Setia.
“Their gearing levels at some 10% each should afford both companies enough leverage for more bank borrowings,” said the analyst.
With the gross development value of some RM40bil, as disclosed to StarBiz by Tan Sri Liew Kee Sin of SP Setia, it was more than attractive enough for both companies to fork out RM2bil for the land.
As the land area is some 38 acres, the analyst said the project would easily be a revenue contributor for more than five years.
“It is difficult to predict (profit) margins at this point as London is an unfamiliar territory. Construction costs may also be higher,” said one anlayst.
He added that with SP Setia having done very well in Malaysia, it was about time that it expanded its brand overseas.
By The Star
Sime Darby Bhd was up 3 sen to RM9.71 on volume of 6.86 million shares yesterday while SP Setia was down 4 sen to RM3.75 on volume of 244,100 shares.
“That piece of land is in a very prime location in London.
“There were many big and reputable names which put in bids for the land. We must commend the deal-making capabilities of these Malaysian companies,” said a property analyst.
The Battersea Station is about 3.5km from the Houses of Parliament and has been vacant for almost three decades.
The 38-acre site sits on the south bank of River Thames. It was put on sale in February after its owners failed to pay lenders more than £500mil (RM2.47bil).
SP Setia and Sime Darby Property have entered into an exclusivity agreement with joint administrators and receivers Alan Bloom and Alan Hudson of Ernst & Young LLP, who acted on behalf of the owners of the property, to acquire the site for £400mil (about RM2bil).
Sime Darby and SP Setia will each hold 50% equity in the joint-bid consortium.
“The capital expenditure for the land will be about RM1bil per company if the equity stake is 50:50 between Sime Darby and SP Setia.
“Their gearing levels at some 10% each should afford both companies enough leverage for more bank borrowings,” said the analyst.
With the gross development value of some RM40bil, as disclosed to StarBiz by Tan Sri Liew Kee Sin of SP Setia, it was more than attractive enough for both companies to fork out RM2bil for the land.
As the land area is some 38 acres, the analyst said the project would easily be a revenue contributor for more than five years.
“It is difficult to predict (profit) margins at this point as London is an unfamiliar territory. Construction costs may also be higher,” said one anlayst.
He added that with SP Setia having done very well in Malaysia, it was about time that it expanded its brand overseas.
By The Star
Utusan Melayu may venture into property development
KUALA LUMPUR: Utusan Melayu (M) Bhd may venture into property development in the future as part of its strategy to unlock the value of its current land-bank.
Executive chairman Tan Sri Hashim Makaruddin said that this would enable the company to earn recurring income in the long term.
Hashim: ‘We can turn it (its 4ha in Kuala Lumpur) into commercial buildings like office buildings, condominiums and serviced apartments.’
The company, which owns 4ha in Jalan Chan Sow Lin, Kuala Lumpur, has leased the land to the service and manufacturing industries.
“We can turn it into commercial buildings like office buildings, condominiums and serviced apartments in the future,” he told reporters after the company's AGM.
Hashim said that newspaper circulation and advertising would remain significant contributors to the group's revenue on a 60:40 ratio.
“Our Utusan Malaysia and Kosmo circulations are on the rise this year, with Utusan Malaysia's circulation up at 171,000, from 151,000 last year, while Kosmo's has increased to 220,000 from 208,000 previously,” he said.
Commenting on the company's poor performance in the first quarter of the year, Hashim said it was due to reduced advertisement revenue.
“We are hoping, in the second half of the year, things will be brighter given the impending Euro Cup and general election as it will mean more advertisement revenue,” he said.
The company registered a pre-tax loss of RM8.679mil for the first quarter ended March 31, compared with a pre-tax profit of RM1.369mil a year earlier.
By Bernama
Executive chairman Tan Sri Hashim Makaruddin said that this would enable the company to earn recurring income in the long term.
The company, which owns 4ha in Jalan Chan Sow Lin, Kuala Lumpur, has leased the land to the service and manufacturing industries.
“We can turn it into commercial buildings like office buildings, condominiums and serviced apartments in the future,” he told reporters after the company's AGM.
Hashim said that newspaper circulation and advertising would remain significant contributors to the group's revenue on a 60:40 ratio.
“Our Utusan Malaysia and Kosmo circulations are on the rise this year, with Utusan Malaysia's circulation up at 171,000, from 151,000 last year, while Kosmo's has increased to 220,000 from 208,000 previously,” he said.
Commenting on the company's poor performance in the first quarter of the year, Hashim said it was due to reduced advertisement revenue.
“We are hoping, in the second half of the year, things will be brighter given the impending Euro Cup and general election as it will mean more advertisement revenue,” he said.
The company registered a pre-tax loss of RM8.679mil for the first quarter ended March 31, compared with a pre-tax profit of RM1.369mil a year earlier.
By Bernama
480 Bukit Beruntung shoplot buyers want abandoned project revived
A group of shoplot buyers who have been left in the lurch after the project in Bukit Beruntung was abandoned 15 years ago staged a protest at the Selangor Mentri Besar’s office in Shah Alam yesterday.
The buyers of Super Taipan shoplot and apartment project by developer Perwira Indera Sakti Sdn Bhd, a subsidiary of Talam Corporation, are seeking urgent intervention of Mentri Besar Tan Sri Khalid Ibrahim to revive the project. The developer filed for bankruptcy in 2007.
K.A. Tan, a representative of the buyers, said 480 out of the original 1,200 affected by the abandoned project were still in limbo while the rest were offered a “swap deal”.
Under the swap deal, Tan said buyers were given properties of equal value by the developer in different locations.
“We, too, want the Selangor government to swap our lots in locations like Puchong or Bukit Jalil if they cannot develop the Super Taipan project,” Tan told reporters before discussing the matter with Khalid at a closed-door meeting at the state secretariat building yesterday..
Tan said the lots were bought at about RM400,000 each and the buyers have been paying between RM1,500 and RM3,000 monthly to the banks since 1997.
“It is unfair to us. We feel cheated paying for properties that were not delivered to us.
“Some of us have been threatened with legal notices from banks if we do not pay the instalments,” he added.
Tan, who is also a representative of the Bukit Beruntung and Bukit Sentosa Real Estate Buyers Association, said they had sought the assistance of the Housing and Local Government Ministry and the previous state government several times to resolve the issue, but no action had been taken.
Another shoplot owner, K.C. Sia, said only six out of 12 blocks of the Super Taipan project were completed.
“What is the point of completing these blocks when there is no water and electricity supply. We want the state government to intervene and get another developer to revive this project,” said Sia.
In 2009, the Selangor government bought over Talam Corporation for RM391mil.
In November last year, Khalid said there were no losses recorded from the takeover of Talam.
Meanwhile, a check by StarMetro at the Super Taipan project site in Bukit Beruntung found that the shoplots were in a deplorable condition.
The window panels, manhole covers, drain covers, doors and window panes were either missing or damaged.
There were also no security guards at the guardpost and rubbish was strewn everywhere.
Out of the 12 blocks, only six blocks of shoplots were 95% ready while the other six were half completed.
The entire area was filled with undergrowth.
By The Star
Engineer: Absence of housing policy pushing prices up
GEORGE TOWN: The absence of a comprehensive state housing policy is the main cause for property prices escalating on Penang island, said Coalition for Good Governance Penang committee member Tan Seng Hai.
He said prices were soaring not because of inadequate supply as claimed by certain quarters.
Tan, who is an engineer, said there was no state policy to curb sub-sales, block sales and gimmicks like soft launches and staff purchases.
“The increase in the price of high-end properties will pull up property prices in the medium and lower end,” he said in a statement here yesterday.
He was commenting on a statement by Penang Real Estate and Housing Developers’ Association chairman Datuk Jerry Chan that property prices on the island would escalate if housing projects on hillslopes were banned as it would result in a shortage of supply.
Tan said there was an oversupply of residential units on Penang island based on figures provided by the Statistics Department and National Property Information Centre.
When contacted, Chan said the population in Penang had tripled in the last 30 years without including foreign workforce.
“Tan could be assuming that one household or one individual owns a single property. But that is usually not the case. Many of them are tenants,” he said.
By The Star
He said prices were soaring not because of inadequate supply as claimed by certain quarters.
Tan, who is an engineer, said there was no state policy to curb sub-sales, block sales and gimmicks like soft launches and staff purchases.
“The increase in the price of high-end properties will pull up property prices in the medium and lower end,” he said in a statement here yesterday.
He was commenting on a statement by Penang Real Estate and Housing Developers’ Association chairman Datuk Jerry Chan that property prices on the island would escalate if housing projects on hillslopes were banned as it would result in a shortage of supply.
Tan said there was an oversupply of residential units on Penang island based on figures provided by the Statistics Department and National Property Information Centre.
When contacted, Chan said the population in Penang had tripled in the last 30 years without including foreign workforce.
“Tan could be assuming that one household or one individual owns a single property. But that is usually not the case. Many of them are tenants,” he said.
By The Star
Thursday, June 7, 2012
UEM Land’s Nusajaya to be driven by new projects
KUALA LUMPUR: For UEM Land Holdings Bhd's fledgling Nusajaya region, the next stage in its growth will be driven by new catalyst projects that are expected to be unveiled soon.
“We have concocted and put on the ground the initial catalysts, but we cannot live on what has been successful in the past, so new projects will be developed,” managing director and chief executive officer Datuk Wan Abdullah Wan Ibrahim told StarBiz.
“We have a few that are on the table and very advanced, but I can't talk about them yet,” he said, adding that official announcements would be made in the fourth quarter.
UEM Land is the master developer of the 23,875-acre Nusajaya, which is one of five flagship zones in Iskandar Malaysia, the country's first economic growth corridor in Johor.
Now in its second phase, the 2,217 sq km Iskandar Malaysia that was launched in 2006 needs average investments of between RM15bil and RM20bil per annum from 2011 to 2015, up from RM10bil to RM15bil targeted for 2006 to 2010.
A five-year progress report by the Iskandar Regional Development Authority had projected that Iskandar Malaysia requires a staggering RM383bil in investments over the next 20 years.
“I believe we have very good prospects, and the single biggest factor we are hanging our optimism on is Nusajaya. I have struggled 6 years trying to put Nusajaya where it belongs.
“After six years, I can tell you it has arrived at its 'tipping point'. By the end of the year, a lot of initiatives would be completed and in operation. This will result in a new demand structure for our projects down south,” Wan Abdullah said.
This “new demand structure”, he explained, meant that if the developer previously sold 800 units in a year, it might be able to double or even triple that amount post-tipping point.
“Nusajaya is unique because it is not leveraging on the local market. Our market is the world because of its proximity to Singapore.
“UEM Land, compared to the other developers, I dare say, has the best opportunity in these current times,” he said, adding that the company was the biggest private landowner in Johor.
This year is touted as the “tipping point” for Iskandar Malaysia as many of its major projects and infrastructure, including the coastal highway to Johor Baru, Legoland Malaysia and two new colleges in EduCity, would come onstream.
In Nusajaya, UEM Land has four ongoing projects: East Ledang, Nusa Idaman, Puteri Harbour, Nusa Bayu and Horizon Hills, which is a joint-venture (JV) with Gamuda Land Bhd.
The high-rise, waterfront Imperia condominiums in Puteri Harbour, its first residential development there, has seen a take-up of 85% since its launch nine months ago and an average selling price of RM725 psf, with prices reaching RM1,000 psf in the upper floors.
Asked if the company, which is 65%-owned by Khazanah Nasional Bhd, has felt any impact from Bank Negara's responsible lending guidelines, Wan Abdullah said: “Of course. Anyone who tells you (otherwise) is not telling the truth. If it is good for the country, I'm resigned to the fact.
"I believe the leadership know what they are doing. They don't want to create a property bubble and they want to curb excessive speculation, which is all good. UEM Land is a long-term player. If tightening credit is the answer, so be it.”
However, he conceded that “it may not be good” for the company's short term performance.
On the possibility that the Government may raise the floor price for houses sold to foreigners, Wan Abdullah said he was not concerned.
“Our products in Nusajaya are upmarket. The bungalows are over RM3mil and apartments over RM1mil, especially those in the waterfront. If they say foreigners can only buy RM2mil and above, then I think I will pack it in,” he said with a laugh.
In April, StarBiz had reported that a proposal was being talked about to set a minimum price of RM1mil on properties bought by non-Malaysians from RM500,000 currently in an effort to prevent runaway house prices.
Sources had also said the revised price threshold may be slightly lower at RM800,000 for residential properties in selected economic corridors such as Iskandar Malaysia.
By The Star
No REIT for KLCC Property soon
SPECULATION about a real estate investment trust (REIT) exercise by KLCC Property is not new. At its analyst briefing in April, management said that it was still undecided on this issue.
Coming up with a REIT will not enhance the value of the company but merely unlock the otherwise trapped value.
This is because its assets have constantly been revalued to market value, already reflected in the net tangible asset of RM5.55 per share, which is close to our revised net asset value estimate of RM5.32 per share.
We do not see a pressing need for a REIT exercise as the company is not in urgent need of cash. Its balance sheet is still solid as net gearing at end-March was 21%, low for a property investment company.
Its debt-to-investment properties ratio of 19% is also lower than most local REITs.
Another potential obstacle to a REIT is major shareholder Petroliam Nasional Bhd's (Petronas) 360.7 million redeemable convertible unsecured loan stocks (RCULS) which have yet to be converted into common shares.
All outstanding RCULS would be mandatorily converted into common shares 10 years from issue the date of (i.e. Aug 9, 2014).
We do not expect a REIT exercise to take place before the conversion of the RCULS as Petronas would miss out on the benefits of such a move.
As there is no confirmation of such a move or its timing, we retain our “underperform” rating.
Without confirmation of REIT plans, KLCC Property could be de-rated as investors switch to larger local REITs like CapitaMalls Malaysia Trust and Sunway REIT for higher yields.
By The Star
MRT plans to integrate station with BB Plaza
Mass Rapid Transit Corporation Sdn Bhd (MRT Corp) has confirmed that it is in negotiations with the government to build an underground station integrated with Bukit Bintang Plaza (BB Plaza).
The plan to integrate the station towards BB Plaza will do away with the need to involve private properties in completing the project, and at the same time provides a golden opportunity to reposition the almost 40-year old BB Plaza.
Discussions between property owners and traders on Jalan Bukit Bintang with Prime Minister Datuk Seri Najib Tun Razak was held in March, after which the prime minister raised concern over the planned five-year closure of businesses there.
MRT Corp explored three alternative solutions but decided on the station integration option.
"It is the best solution because it presents UDA Holdings with the opportunity to redevelop BB Plaza, with a direct linkage to a key public transport infrastructure.
"This link will bring immense benefits to the mall. We have had several meetings with the Ministry of Finance (MoF), as owners of UDA Holdings, to connect the station to BB Plaza.
"Discussions are continuing," said MRT Corp Chief Executive Officer, Datuk Azhar Abdul Hamid in a statement today.
He had also clarified reports that MRT Corp was going to acquire BB Plaza.
"It must be clarified that there has never been any plan to acquire BB Plaza. Our principal focus at present is to build the Sungai Buloh – Kajang (SBK) MRT line.
"We don’t want to be distracted by property development at this stage. All our discussions with the MoF have always been about finding solutions to address the prime minister’s concerns," he said.
Azhar said the construction of the Bukit Bintang Station presents several golden opportunities.
One is for UDA Holdings to redevelop BB Plaza to keep up with the times.
"The other end of Jalan Bukit Bintang has seen rapid redevelopment over the past few years, and this has clearly added KL’s appeal to both locals and tourists alike. BB Plaza can be part of this 'new' Bukit Bintang. The 1970s-built BB Plaza has the potential to be the icon of the area," he added.
The second opportunity centres on enhancing and elevating the Bumiputera agenda, as opposed to merely using cheap rental as a means to incentivise and promote their participation in trade.
"Bumiputeras can now shift up a gear to become entrepreneurs. Of course, an area for small traders can be built into the redeveloped mall, but they must also be given the opportunity to move up the value chain.
"This elevates their role, and is value-adding, so MRT Corp sees no reason why UDA’s role in promoting active participation of Bumiputeras in retail in urban areas has to be compromised with redevelopment. In fact, it can be enhanced," said Azhar.
The days of providing merely cheap rental as leverage for Bumiputera businesses to grow and transform is no longer feasible, he said.
"Cheap rental doesn’t make a destination. It is the quality and offerings inside the mall. With the mall redevelopment, the opportunity exists to reinvent the Bumiputera agenda and make it better," said Azhar.
He emphasised that MRT Corp is ever ready to collaborate with any
government agency or company to creatively redevelop Bukit Bintang, to ensure that there is a win-win situation for all parties.
He noted that apart from housing estates, linkages to malls and public facilities are the key to building a public transportation system that will alleviate traffic congestion and provide a more reliable alternative to commuters.
When completed in 2017, the MRT’s four-car train sets are capable of carrying 25,000 people per hour per direction.
Moving this number of people in the traditional way would put further strain on roads that are already congested in the capital and its surrounding areas.
By Bernama
The plan to integrate the station towards BB Plaza will do away with the need to involve private properties in completing the project, and at the same time provides a golden opportunity to reposition the almost 40-year old BB Plaza.
Discussions between property owners and traders on Jalan Bukit Bintang with Prime Minister Datuk Seri Najib Tun Razak was held in March, after which the prime minister raised concern over the planned five-year closure of businesses there.
MRT Corp explored three alternative solutions but decided on the station integration option.
"It is the best solution because it presents UDA Holdings with the opportunity to redevelop BB Plaza, with a direct linkage to a key public transport infrastructure.
"This link will bring immense benefits to the mall. We have had several meetings with the Ministry of Finance (MoF), as owners of UDA Holdings, to connect the station to BB Plaza.
"Discussions are continuing," said MRT Corp Chief Executive Officer, Datuk Azhar Abdul Hamid in a statement today.
He had also clarified reports that MRT Corp was going to acquire BB Plaza.
"It must be clarified that there has never been any plan to acquire BB Plaza. Our principal focus at present is to build the Sungai Buloh – Kajang (SBK) MRT line.
"We don’t want to be distracted by property development at this stage. All our discussions with the MoF have always been about finding solutions to address the prime minister’s concerns," he said.
Azhar said the construction of the Bukit Bintang Station presents several golden opportunities.
One is for UDA Holdings to redevelop BB Plaza to keep up with the times.
"The other end of Jalan Bukit Bintang has seen rapid redevelopment over the past few years, and this has clearly added KL’s appeal to both locals and tourists alike. BB Plaza can be part of this 'new' Bukit Bintang. The 1970s-built BB Plaza has the potential to be the icon of the area," he added.
The second opportunity centres on enhancing and elevating the Bumiputera agenda, as opposed to merely using cheap rental as a means to incentivise and promote their participation in trade.
"Bumiputeras can now shift up a gear to become entrepreneurs. Of course, an area for small traders can be built into the redeveloped mall, but they must also be given the opportunity to move up the value chain.
"This elevates their role, and is value-adding, so MRT Corp sees no reason why UDA’s role in promoting active participation of Bumiputeras in retail in urban areas has to be compromised with redevelopment. In fact, it can be enhanced," said Azhar.
The days of providing merely cheap rental as leverage for Bumiputera businesses to grow and transform is no longer feasible, he said.
"Cheap rental doesn’t make a destination. It is the quality and offerings inside the mall. With the mall redevelopment, the opportunity exists to reinvent the Bumiputera agenda and make it better," said Azhar.
He emphasised that MRT Corp is ever ready to collaborate with any
government agency or company to creatively redevelop Bukit Bintang, to ensure that there is a win-win situation for all parties.
He noted that apart from housing estates, linkages to malls and public facilities are the key to building a public transportation system that will alleviate traffic congestion and provide a more reliable alternative to commuters.
When completed in 2017, the MRT’s four-car train sets are capable of carrying 25,000 people per hour per direction.
Moving this number of people in the traditional way would put further strain on roads that are already congested in the capital and its surrounding areas.
By Bernama
UDA may sell BB Plaza
UDA Holdings Bhd said yesterday it may ask for RM474 million from MRT Corp Bhd for its Bukit Bintang Plaza (BB Plaza) were it to let go of the property for the construction of an underground MY Rapid Transit (MRT) station.
Chairman Datuk Nur Jazlan Mohamed said the prime property could cost around RM374 million, with a further RM100 million required to compensate BB Plaza retailers who had to leave before their lease expired.
Speaking to Business Times after launching UDA Holdings’ RM13 million IT transformation programme yesterday, Nur Jazlan said construction of the underground station would also affect Bumiputera businesses as at least 60 per cent of the 150-odd retailers at BB plaza, which is owned by UDA and built in the 1970s, are Bumiputeras.
MRT Corp plans to take over the land fronting BB Plaza and the adjacent Yayasan Selangor building next month to start work on the underground station, which is one of 13 stations for the 51km Sungai Buloh-Kajang MRT line.
It will then take over the basements of both buildings to build the station, which means the retailers may have to move out next year.
There are also talks on whether to redevelop BB Plaza or leave the building as it is.
Nur Jazlan said while he supported the building of the station, the redevelopment of BB Plaza would harm the agenda to provide space for Bumiputera retailers in the capital city’s main shopping district.
“If we were to redevelop BB Plaza, the replacement cost will be high and we have to increase rental rates. This will complicate our Bumiputera agenda. It is better to leave the building as it is.”
He said if MRT Corp were to acquire the plaza, the benchmark would be RM374 million for the building.
"BB Plaza is the only prime asset we have left but if we can get RM374 million for the property, based on current market value, then we are willing to let it go.
"This is a national project and if asked by the government to sacrifice the building, we will comply. However, we will also seek compensation for the retailers," he said.
If the asset sale does go through, it won't be the first deal between UDA and MRT Corp. About six months ago, MRT Corp paid UDA RM80 million to acquire UO Superstore and Plaza Warisan in Kuala Lumpur, RM40 million below market price, to build an MRT station at the sites.
By Business Times
Speaking to Business Times after launching UDA Holdings’ RM13 million IT transformation programme yesterday, Nur Jazlan said construction of the underground station would also affect Bumiputera businesses as at least 60 per cent of the 150-odd retailers at BB plaza, which is owned by UDA and built in the 1970s, are Bumiputeras.
MRT Corp plans to take over the land fronting BB Plaza and the adjacent Yayasan Selangor building next month to start work on the underground station, which is one of 13 stations for the 51km Sungai Buloh-Kajang MRT line.
It will then take over the basements of both buildings to build the station, which means the retailers may have to move out next year.
There are also talks on whether to redevelop BB Plaza or leave the building as it is.
Nur Jazlan said while he supported the building of the station, the redevelopment of BB Plaza would harm the agenda to provide space for Bumiputera retailers in the capital city’s main shopping district.
“If we were to redevelop BB Plaza, the replacement cost will be high and we have to increase rental rates. This will complicate our Bumiputera agenda. It is better to leave the building as it is.”
He said if MRT Corp were to acquire the plaza, the benchmark would be RM374 million for the building.
"BB Plaza is the only prime asset we have left but if we can get RM374 million for the property, based on current market value, then we are willing to let it go.
"This is a national project and if asked by the government to sacrifice the building, we will comply. However, we will also seek compensation for the retailers," he said.
If the asset sale does go through, it won't be the first deal between UDA and MRT Corp. About six months ago, MRT Corp paid UDA RM80 million to acquire UO Superstore and Plaza Warisan in Kuala Lumpur, RM40 million below market price, to build an MRT station at the sites.
By Business Times
UMLand appoints Chia as new CEO
KUALA LUMPUR: United Malayan Land Bhd (UMLand) has appointed Chia Lui Meng as its new group chief executive officer with effect from Monday, succeeding Pee Tong Lim, whose tenure ended in February when he retired.
Chia, who was the CEO of Malton Bhd and adviser to the group managing director of Naza TTDI Sdn Bhd, will be responsible for the strategic direction and overall management and operations of the UMLand group.
By Business Times
Chia, who was the CEO of Malton Bhd and adviser to the group managing director of Naza TTDI Sdn Bhd, will be responsible for the strategic direction and overall management and operations of the UMLand group.
By Business Times
Wednesday, June 6, 2012
RM833mil commercial project in Shah Alam
Magna Prima Bhd (MPB) is proposing a mixed development project in Shah Alam with a gross development value of RM833 million, with the latest acquisition of 8ha (20 acres) of land worth RM100 million.
Paying about RM115 per square foot, MPB chief executive officer Datuk Rahadian Mahmud said the leasehold commercial land would be an important asset for development while increasing the company’s footprint in Shah Alam.
“We will be funding the purchase with RM70 million cash through internally generated funds and bank borrowings,” said Rahadian in a Press statement,“While the balance RM30 million through the issuance of new shares in Magna Ecocity Sdn Bhd, the wholly-owned subsidiary of MPB through which the land will be purchased.”
One of MPB’s development plans is a mixed development involving an estimated 180 units of two-storey and three-storey, low-rise shop-offices and four blocks of serviced apartments with a total of about 1,600 units.
Development of this project is scheduled to commence within two years.
Rahadian highlighted that the land comes with a wide frontage of almost half a kilometre facing Persiaran Selangor. The property is also visible from the Federal Highway.
Persiaran Selangor forms the main access road for Section 15 and Section 16, two established commercial and industrial hubs in Shah Alam.
The property has direct access to the Federal Highway and easy accessibility to other expressways such as the North Klang Valley Expressway (NKVE), North-South Centre Link, Shah Alam Expressway (Kesas), Leburaya Damansara Puchong (LDP) and the Guthrie Corridor.
The parcel’s proximity to other public amenities such as KTM stations, a private hospital, a hotel, educational institutions and a stadium are expected to fuel its appeal to investors and owner-occupiers alike.
An investment holding company listed on Bursa Malaysia, MPB is involved in property development, construction, trading and property management services.
By The Star
M’sian investment in Aussie properties to grow
GEORGE TOWN: Investments from Malaysia in the Australian property market is expected to grow by about 15% this year from RM125mil in 2011.
Property Talk director Steven Cheah said in an interview that for the past two years the investment in Australia had remained flat at about RM125mil per annum.
“This was due to the stronger Australian dollar. But since March, the Australian currency had weakened slightly and so we are anticipating more property investments in Australia.
“We have also been getting a lot more enquiries since March 2012 about investing in properties in Sydney and Melbourne,” he said.
Cheah said every year many Malaysians go to study in Australia, thus creating a severe shortage of property for rental.
“Many parents find that buying property for their children make more economic sense than renting. Once their children completed their education, the property can be rented as rental income or they can sell with good capital income,” he said.
According to Cheah, Melbourne was the top destination for Malaysian property investment funds.
“This is because many Malaysians have relatives who have migrated to Melbourne, where you can find a variety of Malaysian restaurants.
“According to the latest research by Australian Property Monitors, of the major capital cities, Melbourne has been the standout performer for house price growth over the last five years, with prices increasing almost 30% in just 15 months.
“Perth was the worst performing city, with the median house price unchanged in five years, which is largely a hangover from a resource-fuelled boom in prices in the early 2000,” Cheah said.
He added that Sydney and Melbourne were always voted as the top three most livable cities in Asia by ECA International, a research firm with its Asia headquarters in Hong Kong.
On Mirvac's new project in Melbourne, Cheah said the Array project, comprising 169 condominiums was next to the Yarra River.
“The project, introduced in Shanghai recently, received very positive response. Some 35 units were sold in one week,” he said.
The Array condominiums, positioned on the north-facing bank of the Yarra River, with built-up areas from 55 sq m onwards are priced from A$513,000.
“A limited number of three bedroom, deluxe Sky Residence options, priced from A$1.41mil, is also available,” Cheah said.
The project will be exclusively previewed at Hilton Kuala Lumpur on June 9 and June 10.
“Construction work on the Array project has started and is scheduled for completion in end-2014,” Cheah added.
By The Star
Affordable housing in city possible: Rehda
KUALA LUMPUR: Affordable housing in the city for the poor and middle class is possible when the government provide the land for the development, said Real Estate and Housing Developers Association Malaysia (REHDA).
"In terms of rising cost of materials, it's something that we can't control. One thing that is under the government control is land -- whether it is available for low and medium cost housing.
"I'm not sure what the plans are for the Rubber Research Institute land but if they target a certain portion for affordable housing it would be good because land is one of the biggest cost components in property development," said REHDA council member N.K. Tong.
Tong was speaking to reporters here yesterday (5/6) on the upcoming fourth International Conference on World Class Sustainable Cities 2012 (WCSC 2012).
To be held on September 25, the WCSC 2012 will carry the theme "Cities for People". Among issues to be discussed include housing for urban poor, daycare services, preservation of greenery, safety practices and community building activities in the interest of crime prevention, re-landscape of open spaces and a more integrated public transportation.
The WCSC series is being co-organised by REHDA, Kuala Lumpur City Hall, the Malaysian Institute of Planners and the Malaysian Institute of Architects.
In the past three editions, the WCSC series focused on the transformation of Cheongyecheon River in Seoul, South Korea; city transportation solutions Curitiba, Brazil; and the metamorphosis of Kaohsiung, Taiwan; from an industrial polluter to an ecological tourist hub.
By Business Times
"In terms of rising cost of materials, it's something that we can't control. One thing that is under the government control is land -- whether it is available for low and medium cost housing.
"I'm not sure what the plans are for the Rubber Research Institute land but if they target a certain portion for affordable housing it would be good because land is one of the biggest cost components in property development," said REHDA council member N.K. Tong.
Tong was speaking to reporters here yesterday (5/6) on the upcoming fourth International Conference on World Class Sustainable Cities 2012 (WCSC 2012).
To be held on September 25, the WCSC 2012 will carry the theme "Cities for People". Among issues to be discussed include housing for urban poor, daycare services, preservation of greenery, safety practices and community building activities in the interest of crime prevention, re-landscape of open spaces and a more integrated public transportation.
The WCSC series is being co-organised by REHDA, Kuala Lumpur City Hall, the Malaysian Institute of Planners and the Malaysian Institute of Architects.
In the past three editions, the WCSC series focused on the transformation of Cheongyecheon River in Seoul, South Korea; city transportation solutions Curitiba, Brazil; and the metamorphosis of Kaohsiung, Taiwan; from an industrial polluter to an ecological tourist hub.
By Business Times
Spacious homes of Emerald Gardens
GuocoLand Malaysia has upped the ante with the latest launch of two and 2½-storey superlinked houses in Emerald Rawang, a township in the Northern Corridor of the Klang Valley.
The new superlinked houses at Emerald Gardens not only feature a contemporary design but are quite spacious. The latest units will be launched in conjunction with the Emerald Gardens Party at the Emerald sales gallery on June 9.
Built with excellent infrastructure, the development enjoys easy accessibility to Kuala Lumpur and the surrounding areas via the North-South Highway, New Klang Valley Expressway and the Guthrie Corridor Expressway.
Located within easy reach of Rawang’s commercial centre, Emerald Rawang is only 20 minutes by car from Jalan Duta and the Damansara toll.
Rawang has all the essential amenities including post office, banks, restaurants, hypermarkets, wet market and KTM Komuter station.
Set within the natural greenery and rolling hills of the 405ha (1,000 acres) township, Emerald Gardens will set a new benchmark for upmarket, landed properties.
Offering a total of 161 new units, the tropical garden concept homes come with an option of three designs with wide frontage.
Besides landscaped features, the two-storey homes of 26ft by 80ft come with a built-up space that starts from 278sq m (2,990sq ft). The 2½-storey homes come with two layout options of 24ft by 80ft and 26 ft by 80ft and the built-up space is from 333sq m (3,585sq ft).
GuocoLand Bhd marketing and sales director Pam Loh said the Emerald Gardens project was designed for today’s discerning consumers and investors, who seek more spacious and versatile homes to meet their lifestyle needs.
“We have redefined the two key features by offering the biggest superlinked homes with carefully planned layouts in Rawang, and which cater to the different needs of home buyers.
“We have received overwhelming response during the pre-launch period. We have sold over 80% of our pre-launch releases. More units will be released on Saturday,” added Loh.
Besides the spacious built-up, other key features include:
- Minimum 5+1 bedroom configuration
- Two master bedrooms for 2½-storey units
- All bedrooms with spacious ensuite bathrooms
- His and hers vanity top, and bathtub for the master bathroom
- Three-phase wiring
- Wide driveway and column-free car porch for side-by-side parking
- Rooftop terrace for natural lighting and better ventilation for 2½-storey units
- Exclusive linear park – landscaped walkway for residents
- Landscaped back lanes
- 24-hour guarded development with perimeter fencing
Visitors to the Emerald Gardens launch party from 9.30am to 9.30pm on June 9 can look forward to fun and activities, apart from viewing the two Emerald Gardens show units. Highlights of the carnival include helicopter rides, biking, “Shanghai jazz” performance and fireworks display.
By The Star
SP Setia clinches most trusted developer award
KUALA LUMPUR: SP Setia Bhd was recognised recently for the second time running as the developer Malaysians trust most in the Reader's Digest Asia Trusted Brands 2012 study.
The company was awarded the Gold Trusted Brand Award in the Property Development category at the gala awards dinner held last month.
Minister of International Trade and Industry Datuk Seri Mustapa Mohamed presented the award to SP Setia director Tan Sri Lee Lam Thye.
The SP Setia brand has grown regionally with the developer's first international foray into Vietnam in 2007 when it joined forces with the country's top state-owned conglomerate Becamex IDC Corp to develop EcoLakes at the MyPhuoc Industrial Park.
In 2010, EcoLakes was named first runner-up in the FIABCI Prix d'Excellence Award for Best Development Master Plan.
Following this success, the group has also launched a mixed development project called Eco Xuan at Lai Thieu in Tuan An District, Binh Doung Province.
By Business Times
Minister of International Trade and Industry Datuk Seri Mustapa Mohamed presented the award to SP Setia director Tan Sri Lee Lam Thye.
The SP Setia brand has grown regionally with the developer's first international foray into Vietnam in 2007 when it joined forces with the country's top state-owned conglomerate Becamex IDC Corp to develop EcoLakes at the MyPhuoc Industrial Park.
In 2010, EcoLakes was named first runner-up in the FIABCI Prix d'Excellence Award for Best Development Master Plan.
Following this success, the group has also launched a mixed development project called Eco Xuan at Lai Thieu in Tuan An District, Binh Doung Province.
By Business Times
BB Plaza compensation projected at RM370m
UDA Holdings Bhd hopes that a fair and commensurate compensation will be offered by MRT Corp Bhd to the affected party and Bumiputera traders if its building, Bukit Bintang Plaza (BB Plaza), has to be demolished.
There is a possibility that the plaza including a part of the Yayasan Selangor building will be demolished to make way for the building of an underground station under the government's mega project, My Rapid Transit.
UDA's Chairman, Datuk Nur Jazlan Mohamed said if the BB Plaza is demolished, the company stood to lose 25 per cent or RM20-RM25 million of its annual revenue comprising rental collections from its lots in the building.
"Nevertheless, what also concerns us is the potential losses to the Bumiputera traders who would be affected throughout the implementation of the MRT project which is estimated to take four to five years," he told reporters after launching the transformation of UDA's information technology system.
Todate, 150 retailers or 60 per cent of the retailers in BB Plaza are Bumiputeras.
"We have also projected that the fair amount of compensation to be paid out for demolishing the building should be in the region of RM370 million," Nur Jazlan said.
He said the plaza would also be its third building to be surrendered to MRT Corp in making way for the MRT.
Other two buildings that have already made way are the UO Superstore and Plaza Warisan.
"We had received RM80 million for those two buildings from MRT Corp even if the property value for the buildings currently stands at RM120 million. This however is a sacrifice made by UDA to ensure that the government's economic develoment plan is successfully carried out."
Nur Jazlan also said that no definite date has been given on when MRT Corp would be taking over the building as it was still under discussion.
Nonetheless, any decision would depend on the Ministry of Finance which is the ultimate owner of UDA, he said.
On the transformation of UDA's information system which is to cost RM13 million, Nur Jazlan said it was part of UDA's efforts to provide more efficient services to its clients.
By Bernama
There is a possibility that the plaza including a part of the Yayasan Selangor building will be demolished to make way for the building of an underground station under the government's mega project, My Rapid Transit.
UDA's Chairman, Datuk Nur Jazlan Mohamed said if the BB Plaza is demolished, the company stood to lose 25 per cent or RM20-RM25 million of its annual revenue comprising rental collections from its lots in the building.
"Nevertheless, what also concerns us is the potential losses to the Bumiputera traders who would be affected throughout the implementation of the MRT project which is estimated to take four to five years," he told reporters after launching the transformation of UDA's information technology system.
Todate, 150 retailers or 60 per cent of the retailers in BB Plaza are Bumiputeras.
"We have also projected that the fair amount of compensation to be paid out for demolishing the building should be in the region of RM370 million," Nur Jazlan said.
He said the plaza would also be its third building to be surrendered to MRT Corp in making way for the MRT.
Other two buildings that have already made way are the UO Superstore and Plaza Warisan.
"We had received RM80 million for those two buildings from MRT Corp even if the property value for the buildings currently stands at RM120 million. This however is a sacrifice made by UDA to ensure that the government's economic develoment plan is successfully carried out."
Nur Jazlan also said that no definite date has been given on when MRT Corp would be taking over the building as it was still under discussion.
Nonetheless, any decision would depend on the Ministry of Finance which is the ultimate owner of UDA, he said.
On the transformation of UDA's information system which is to cost RM13 million, Nur Jazlan said it was part of UDA's efforts to provide more efficient services to its clients.
By Bernama
Magna unit in RM100mil land deal
Shah Alam 20-acre acquisition to be paid by RM70mil cash and share issuance
KUALA LUMPUR: Magna Prima Bhd unit Magna Ecocity Sdn Bhd has proposed to buy 20 acres from PCM Bina Sdn Bhd, located in Section 15, Shah Alam, for RM100mil via cash and share issuance.
Magna Prima signed a conditional sale and purchase agreement with PCM Bina Sdn Bhd yesterday and stated that the RM100mil payment would be satisfied by RM70mil cash and the balance in the form of 1.11 million issuance of new ordinary shares representing a 30% interest in the enlarged share capital in Magna Ecocity or at approximately RM26.92 per Magna Ecocity share.
The cash consideration portion of the proposed land acquisition would be financed through a combination of internally generated funds and bank borrowings, of which the breakdown had yet to be determined, Magna Prima said.
The said land was located at the north-west intersection of Federal Highway, Expressway Lingkaran Tengah (ELITE) Highway and Guthrie Corridor Expressway, it said in a statement to Bursa Malaysia.
“Magna Ecocity will be responsible to undertake the overall construction and completion of the proposed development of the property. Currently the property is vacant,” it said.
Magna Prima is proposing to develop the land into a mixed residential and commercial project, comprising 180 units of 3-storey shop offices and 1,620 residential apartments.
“The gross development value of the proposed development is estimated at RM832.67mil and the total development cost is estimated to be RM624.83mil with an expected gross profit of RM207.84mil. The proposed development is expected to commence in 2013 and is estimated to be completed by 2016,” it said.
The proposed land acquisition is subject to approval and barring any unforeseen circumstances, the proposed acquisition is expected to be completed within the fourth quarter of 2012, it said.
By The Star
KUALA LUMPUR: Magna Prima Bhd unit Magna Ecocity Sdn Bhd has proposed to buy 20 acres from PCM Bina Sdn Bhd, located in Section 15, Shah Alam, for RM100mil via cash and share issuance.
Magna Prima signed a conditional sale and purchase agreement with PCM Bina Sdn Bhd yesterday and stated that the RM100mil payment would be satisfied by RM70mil cash and the balance in the form of 1.11 million issuance of new ordinary shares representing a 30% interest in the enlarged share capital in Magna Ecocity or at approximately RM26.92 per Magna Ecocity share.
The cash consideration portion of the proposed land acquisition would be financed through a combination of internally generated funds and bank borrowings, of which the breakdown had yet to be determined, Magna Prima said.
The said land was located at the north-west intersection of Federal Highway, Expressway Lingkaran Tengah (ELITE) Highway and Guthrie Corridor Expressway, it said in a statement to Bursa Malaysia.
“Magna Ecocity will be responsible to undertake the overall construction and completion of the proposed development of the property. Currently the property is vacant,” it said.
Magna Prima is proposing to develop the land into a mixed residential and commercial project, comprising 180 units of 3-storey shop offices and 1,620 residential apartments.
“The gross development value of the proposed development is estimated at RM832.67mil and the total development cost is estimated to be RM624.83mil with an expected gross profit of RM207.84mil. The proposed development is expected to commence in 2013 and is estimated to be completed by 2016,” it said.
The proposed land acquisition is subject to approval and barring any unforeseen circumstances, the proposed acquisition is expected to be completed within the fourth quarter of 2012, it said.
By The Star
Magna Prima buys 8ha site in Shah Alam
KUALA LUMPUR: Magna Prima Bhd, via its wholly-owned unit Magna Ecocity Sdn Bhd, plans to buy a 8ha leasehold land in Shah Alam for RM100 million.
The purchase will be settled via cash (RM70 million) and issuance of 1.11 million Magna Ecocity shares.
By Business Times
The purchase will be settled via cash (RM70 million) and issuance of 1.11 million Magna Ecocity shares.
By Business Times
Karambunai to dispose land worth RM44.9mil in Sabah
KUALA LUMPUR: Karambunai Corp Bhd is selling several land parcels measuring about 94 acres in Bandar Sierra, Kota Kinabalu for RM44.9mil.
According to the company, it expected to record gain of disposal of RM22.8mil as the net book value of the plots were at RM22.1mil.
Karambunai said it had signed sale and purchase agreements to sell 33.11 and 3.27 acres of leasehold land in Bandar Sierra to Sinkong Construction Sdn Bhd for RM15.86mil and RM498,769 respectively.
The company also said it was selling 27.01 and 29.95 acres of leasehold land in Bandar Sierra to Yu Sin Kong for RM12.94mil and RM15.65mil respectively.
“The proposed disposals of these non-core assets are part of the group's streamlining exercise,” Karambunai said.
The group is primarily involved in resorts operations and development in the Karambunai Peninsular, Kota Kinabalu, Sabah.
The proceeds from the disposals would be used to repay bank borrowing and fund the group's working capital requirement.
Yu is a Malaysian citizen, residing in Kota Kinabalu.
Sinkong Construction Sdn Bhd was incorporated in Malaysia as a private limited principal activity in general civil engineering, building construction and transportation.
By The Star
According to the company, it expected to record gain of disposal of RM22.8mil as the net book value of the plots were at RM22.1mil.
Karambunai said it had signed sale and purchase agreements to sell 33.11 and 3.27 acres of leasehold land in Bandar Sierra to Sinkong Construction Sdn Bhd for RM15.86mil and RM498,769 respectively.
The company also said it was selling 27.01 and 29.95 acres of leasehold land in Bandar Sierra to Yu Sin Kong for RM12.94mil and RM15.65mil respectively.
“The proposed disposals of these non-core assets are part of the group's streamlining exercise,” Karambunai said.
The group is primarily involved in resorts operations and development in the Karambunai Peninsular, Kota Kinabalu, Sabah.
The proceeds from the disposals would be used to repay bank borrowing and fund the group's working capital requirement.
Yu is a Malaysian citizen, residing in Kota Kinabalu.
Sinkong Construction Sdn Bhd was incorporated in Malaysia as a private limited principal activity in general civil engineering, building construction and transportation.
By The Star
Tuesday, June 5, 2012
Pantai Plaza rebranded as Bangsar Trade Centre to house wholesale mall
PLANS to revive the mostly vacant Pantai Plaza are expected to commence in August and to be completed in stages.
Located along the Federal Highway, the plaza, renamed as Bangsar Trade Centre (BTC) will have a wholesale centre for food and beverage and hospitality industry.
Malaysia Building Society Bhd (MBSB) signed a RM120mil debt settlement agreement with Twin Pavilion Development Sdn Bhd to revive Pantai Plaza.
The agreement will also settle the debts of the plaza’s previous owner, Atlas Corporation Sdn Bhd.
Twin Pavilion Development chairman Tan Sri Ramli Ngah Talib said plans for the plaza included a corporate office tower, convention and exhibition centre, strata office suites and a hotel.
“We estimate 10,000 visitors daily with the potential to increase this figure exponentially when the surrounding commercial properties such as KL Eco City come into full occupancy,” he said at the signing ceremony, adding that the project has a gross development value of RM850mil.
Ramli added that each component in BTC will support the wholesale centre where manufacturers, suppliers, knowledge and financial providers are brought together.
Twin Pavilion Development chief executive officer Lee Seng Khoon said they would be refurbishing the plaza as well as some construction work.
“The existing podium with a space of 400,000 sq ft will be refurbished to house the wholesale centre where suppliers will be able to connect with buyers,” he said.
Lee added that they would be constructing towers, providing an additional 1mil sq ft of floor space.
“After the project’s completion, we will still be very much involved in this area as we will be retaining a majority of the mall and office space,” he said.
MBSB chairman Tan Sri Abdul Halim Ali who was also present at the event, said the agreement would also see MBSB extending end-financing assistance totalling RM120mil.
“We hope that BTC will become a new landmark that Kuala Lumpur can be proud of,” he added.
Federal Territories and Urban Wellbeing minister Datuk Raja Nong Chik Raja Zainal Abidin had witnessed the signing and launched the project.
He said the continuous urban renewal of the city was a necessity.
“Renewal can provide a city the opportunity to reclaim quality urban spaces.
“However, it does not mean merely putting cosmetic improvements into ageing buildings but to create sustainable urban development through innovation that adds value to the surrounding community,” he said.
By The Star
Programme now offered to properties nationwide with a RM20mil allocation
JOHOR BARU: The 1Malaysia Maintenance Fund (TP 1Malaysia), set up to help residents of private low- and medium-cost flats in Kuala Lumpur, will now be offered to high-rise properties nationwide.
Federal Territories and Urban Wellbeing Minister Datuk Raja Nong Chik Raja Zainal Abidin said a RM20mil allocation would be utilised for the programme to go nationwide.
“So far, we have received 43 such projects nationwide with six applications from Johor alone,” he said, adding that since the programme was launched two years ago, 12 projects worth RM5.3mil had been completed in Kuala Lumpur.
The fund is set up to help pay for repairs such as faulty elevators, new coat of paint for exterior walls, roof leaks and rewiring works.
Speaking to reporters after launching a briefing on the programme here yesterday, Raja Nong Chik said his ministry would carry out the maintenance works for private buildings while the Housing and Local Government Ministry would take care of public housing needs.
To qualify, Raja Nong Chik said the management body, committee or even a residents association could submit their requests for the grants.
“The process takes about seven to eight months,” he said. “The purchase price of the property must also be RM80,000 and below,” he said.
Raja Nong Chik said in Kuala Lumpur, about 25% of flat dwellers had failed to pay their monthly maintenance fees of RM60.
State Local Government, Housing, Arts, Culture and Heritage Committee chairman Datuk Ahmad Zahri Jamil said the state government had requested for funds for six projects with four in Johor Baru and one each in Kota Tinggi and Kluang.
He said such programmes helped to spruce up an area and allowed the price of the property to appreciate because of improved surroundings.
By The Star
Federal Territories and Urban Wellbeing Minister Datuk Raja Nong Chik Raja Zainal Abidin said a RM20mil allocation would be utilised for the programme to go nationwide.
“So far, we have received 43 such projects nationwide with six applications from Johor alone,” he said, adding that since the programme was launched two years ago, 12 projects worth RM5.3mil had been completed in Kuala Lumpur.
The fund is set up to help pay for repairs such as faulty elevators, new coat of paint for exterior walls, roof leaks and rewiring works.
Speaking to reporters after launching a briefing on the programme here yesterday, Raja Nong Chik said his ministry would carry out the maintenance works for private buildings while the Housing and Local Government Ministry would take care of public housing needs.
To qualify, Raja Nong Chik said the management body, committee or even a residents association could submit their requests for the grants.
“The process takes about seven to eight months,” he said. “The purchase price of the property must also be RM80,000 and below,” he said.
Raja Nong Chik said in Kuala Lumpur, about 25% of flat dwellers had failed to pay their monthly maintenance fees of RM60.
State Local Government, Housing, Arts, Culture and Heritage Committee chairman Datuk Ahmad Zahri Jamil said the state government had requested for funds for six projects with four in Johor Baru and one each in Kota Tinggi and Kluang.
He said such programmes helped to spruce up an area and allowed the price of the property to appreciate because of improved surroundings.
By The Star
Magna Prima plans RM832m mixed property project in Shah Alam
KUALA LUMPUR: Magna Prima Bhd's unit is acquiring 20 acres of land in Bandar Shah Alam for RM100mil for a proposed mixed residential and commercial project with a total gross development value (GDV) of RM832mil.
It said on Tuesday that Magna Ecocity Sdn Bhd (MESB) had signed a conditional sale and purchase agreement with PCM Bina Sdn to purchase the land.
MESB would pay RM70mil to PCM and settle the outstanding RM30mil via the issuance of 1.114 million new shares or at about RM26.92 per MESB Share.
Magna Prima said MESB would undertake the overall development of a mixed residential and commercial project, comprising 180 three-storey shop offices and 1,620 residential apartments.
"The gross development value of the proposed development is estimated at RM832.67mil and the total development cost is estimated to be RM624.83mil with an expected gross profit of RM207.84mil. The proposed development is expected to commence in 2013 and is estimated to be completed by 2016," it said.
By The Star
It said on Tuesday that Magna Ecocity Sdn Bhd (MESB) had signed a conditional sale and purchase agreement with PCM Bina Sdn to purchase the land.
MESB would pay RM70mil to PCM and settle the outstanding RM30mil via the issuance of 1.114 million new shares or at about RM26.92 per MESB Share.
Magna Prima said MESB would undertake the overall development of a mixed residential and commercial project, comprising 180 three-storey shop offices and 1,620 residential apartments.
"The gross development value of the proposed development is estimated at RM832.67mil and the total development cost is estimated to be RM624.83mil with an expected gross profit of RM207.84mil. The proposed development is expected to commence in 2013 and is estimated to be completed by 2016," it said.
By The Star
SP Setia named most trusted developer
KUALA LUMPUR: SP Setia has been named for the second time running as the developer Malaysians trust the most in the Reader’s Digest Asia Trusted Brands 2012 study.
In a statement today, the company said it took home the Gold Trusted Brand Award in the Property Development category at the gala awards dinner on May 29.
The SP Setia brand has grown regionally with the developer’s first international foray to Vietnam in 2007 when it joined forces with the country’s top state-owned conglomerate Becamex IDC Corp to develop EcoLakes at the MyPhuoc Industrial Park.
The developer’s regional reach now includes Melbourne, Australia, and Singapore.
The Reader’s Digest Study, now in its 14th year is carried out in eight markets across Asia (China, Malaysia, Hong Kong, India, the Philippines, Singapore, Taiwan, and Thailand) to determine the brands most trusted by consumers in 43 different product and service categories.
The study is based on responses to questionnaires distributed via Reader’s Digest copies as well as telephone interviews of randomly selected, upscale consumers, carried out by Ipsos, one of the world’s leading custom research firms.
By Bernama
In a statement today, the company said it took home the Gold Trusted Brand Award in the Property Development category at the gala awards dinner on May 29.
The SP Setia brand has grown regionally with the developer’s first international foray to Vietnam in 2007 when it joined forces with the country’s top state-owned conglomerate Becamex IDC Corp to develop EcoLakes at the MyPhuoc Industrial Park.
The developer’s regional reach now includes Melbourne, Australia, and Singapore.
The Reader’s Digest Study, now in its 14th year is carried out in eight markets across Asia (China, Malaysia, Hong Kong, India, the Philippines, Singapore, Taiwan, and Thailand) to determine the brands most trusted by consumers in 43 different product and service categories.
The study is based on responses to questionnaires distributed via Reader’s Digest copies as well as telephone interviews of randomly selected, upscale consumers, carried out by Ipsos, one of the world’s leading custom research firms.
By Bernama
Karambunai to record RM22.8m gains from KK land sale
KUALA LUMPUR: Karambunai Corp Bhd is expected to record about RM22.81mil in net gains from the sale of several pieces of land measuring about 94 acres in Bandar Sierra, Kota Kinabalu.
It said on Tuesday the net book value was RM22.15mil while the sale consideration was RM44.96mil.
The properties were acquired in March 1997 with an original investment cost of RM19.83mil, including incidental costs incurred.
Karambunai said it had signed sale and purchase agreements to sell 33.11 acres of leasehold land in Bandar Sierra to Sinkong Construction Sdn Bhd for RM15.86mil and another 3.27 acres of leasehold land for RM498,769.
The company also said it was selling 27.01 acres of leasehold land in Bandar Sierra to Yu Sin Kong for RM12.94mil and another 29.95 acres of leasehold land for RM15.65mil.
"Karambunai said the proposed disposals were part of Karambunai group's streamlining exercise by disposing of non-core assets. KCB Group is primarily involved in resorts operations and development in the Karambunai Peninsular, Kota Kinabalu, Sabah.
The proceeds from the disposals would be used to repay bank borrowing and fund the group's working capital requirement.
By The Star
It said on Tuesday the net book value was RM22.15mil while the sale consideration was RM44.96mil.
The properties were acquired in March 1997 with an original investment cost of RM19.83mil, including incidental costs incurred.
Karambunai said it had signed sale and purchase agreements to sell 33.11 acres of leasehold land in Bandar Sierra to Sinkong Construction Sdn Bhd for RM15.86mil and another 3.27 acres of leasehold land for RM498,769.
The company also said it was selling 27.01 acres of leasehold land in Bandar Sierra to Yu Sin Kong for RM12.94mil and another 29.95 acres of leasehold land for RM15.65mil.
"Karambunai said the proposed disposals were part of Karambunai group's streamlining exercise by disposing of non-core assets. KCB Group is primarily involved in resorts operations and development in the Karambunai Peninsular, Kota Kinabalu, Sabah.
The proceeds from the disposals would be used to repay bank borrowing and fund the group's working capital requirement.
By The Star
SP Setia joins Sime Darby in Battersea bid
Sime Darby Bhd said it joined Malaysian developer SP Setia Bhd’s bid for London’s Battersea Power Station, Europe’s largest brick building.
“The consortium is positive that its plan for a mixed sustainable development will be well received,” Kuala Lumpur- based Sime Darby said in an e-mailed statement today.
The derelict 38-acre (15-hectare) site on the south bank of the River Thames was put on sale in February after its owners failed to pay lenders owed more than 500 million pounds ($770 million). At least 10 offers were made to buy the site, including one from Russian billionaire Roman Abramovich’s Chelsea Football Club Ltd., a person familiar with the matter said last month.
SP Setia is one of three remaining bidders for the landmark power station, Chief Executive Officer Liew Kee Sin said May 29. The defunct station, featured on the cover of the 1977 Pink Floyd album “Animals,” is about 2.2 miles (3.5 kilometers) from the Houses of Parliament and has been vacant for almost three decades.
Sime Darby is the country’s largest publicly quoted plantations group, while SP Setia is the Southeast Asian nation’s biggest listed property developer by sales.
The Employees Provident Fund, Malaysia’s biggest pension fund, has been approached to join the bid, though hasn’t made a commitment, Nik Affendi Jaafar, general manager for public relations said by phone today.
Planning permission was granted to Real Estate Opportunities Plc, controlled by Irish developer Treasury Holdings Ltd., last year for a 5.5 billion-pound redevelopment of the station. SP Setia tried to buy the debt related to the power station in November for 262 million pounds and the offer was rejected.
By Bloomberg
“The consortium is positive that its plan for a mixed sustainable development will be well received,” Kuala Lumpur- based Sime Darby said in an e-mailed statement today.
The derelict 38-acre (15-hectare) site on the south bank of the River Thames was put on sale in February after its owners failed to pay lenders owed more than 500 million pounds ($770 million). At least 10 offers were made to buy the site, including one from Russian billionaire Roman Abramovich’s Chelsea Football Club Ltd., a person familiar with the matter said last month.
SP Setia is one of three remaining bidders for the landmark power station, Chief Executive Officer Liew Kee Sin said May 29. The defunct station, featured on the cover of the 1977 Pink Floyd album “Animals,” is about 2.2 miles (3.5 kilometers) from the Houses of Parliament and has been vacant for almost three decades.
Sime Darby is the country’s largest publicly quoted plantations group, while SP Setia is the Southeast Asian nation’s biggest listed property developer by sales.
The Employees Provident Fund, Malaysia’s biggest pension fund, has been approached to join the bid, though hasn’t made a commitment, Nik Affendi Jaafar, general manager for public relations said by phone today.
Planning permission was granted to Real Estate Opportunities Plc, controlled by Irish developer Treasury Holdings Ltd., last year for a 5.5 billion-pound redevelopment of the station. SP Setia tried to buy the debt related to the power station in November for 262 million pounds and the offer was rejected.
By Bloomberg
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