733 high-end homes to be launched by June

SOME 733 units of three-storey landed residential properties with gross sales value totalling over RM700mil will be launched by June on the Penang island.

The developers launching the properties include SP Setia Bhd, E&O Property Development Bhd and Chong Co Sdn Bhd.

SP Setia Property Division (North) general manager S. Rajoo said SP Setia was ready to launch 392 units of three-storey terraced and three-storey semi-detached houses with a gross sales value of RM362mil before mid-2008.

Rajoo said the group expected to generate RM200mil in revenue this year from the sales of new launches.

“Some 172 units of the terraced and semi-detached properties, priced between RM800,000 and RM1.3mil, are for the Setia Pearl Island project located on a 112-acre site in Sungai Ara.

“The remaining 220 units are smaller terraced properties with built-up areas of 2,200sq ft for our new project, Setia Vista, located on a 21 acre in Relau, the south-west district of the island.

Artist’s impressions of SP Setia's semi-detached houses being developed in the Setia Pearl Island scheme in Sungai Ara.

“Due to their smaller size, the Setia Vista properties are priced from RM658,000,” he said.

Rajoo said there were about 37,000 units of landed residential properties of all types on the island.

“These are all occupied. About 3,000 units of landed residential properties are being planned for launching and undergoing construction on the island.

“Penangites know that in the next two to three years, there will hardly be any new landed residential property launches. This is why they are buying now.

“Since last April, we have launched 558 units of three-storey terraced houses with a gross sales value of RM368mil, of which about 75% has been sold,” he said.

Chong Co director Chan Foek Onn said the company planned to launch in the second quarter the Taman Pantai Indah and BJ Residency projects, comprising 209 three-storey terrace and semi-detached homes with built-up areas ranging from 3,000 to 4,000 sq ft.

The gross sales value for both projects is RM182mil.

“The Taman Pantai Indah scheme in Batu Uban near the Penang Bridge comprises 62 properties.

“The BJ Residency is a gated community project on a 8-acre site in Bukit Jambul, the south-west district of the island.

“These properties will be priced above RM850,000,” he added.

Chan said home purchasers were no longer looking for just a house with rooms and bathrooms.

“Architectural designs and spaciousness for privacy counts.

“For our homes, we provide Mediterranean and contemporary tropical designs that come with slope roofs, patios, open arches and large windows for breeze to flow in easily,” he said.

E&O Development Bhd is also launching 132 three-storey semi-detached houses and three-storey bungalows with a gross sales value of RM180mil by June.

Its marketing director K.C. Chong said the semi-detached houses with built-up areas of 4,000 sq ft were priced at RM1.5mil. “The bungalows, with built-up areas of 5,000 sq ft, are priced between RM2.6mil and RM3mil,” he said.

Both the semi-detached and bungalow units come with five to six bedrooms, Chong said.

PPC International Sdn Bhd managing director Mark Saw said the concept and theme of landed residential homes were equally important for the marketing of such properties.

Artist’s impressions of SP Setia's terraced houses being developed in the Setia Pearl Island scheme in Sungai Ara.

“For SP Setia's Setia Pearl Island scheme in Sungai Ara, the developer constructs its residential properties around unique landscape themes differentiated by aromatic plants and trees.

“The Setia Pearl Island homes are within a guarded community, equipped with around-the-clock security and closed-circuit televisions,” he said.

Saw said E&O Property's Seri Tanjung Pinang project was developed around the “lifestyle-by-the sea” theme.

“To be developed in the near future is The Waterside project, which comprises a marina, retail and leisure outlets, boutiques, as well as an entertainment complex within the Seri Tanjung Pinang,” he said.

By The Star

Casa Del Mar plans RM300m expansion

The Casa Del Mar Group plans to invest some RM300 million to build four to five new boutique hotels and to buy more land to develop resorts in Malaysia.

"We are looking at something in Penang, Terengganu and Port Dickson. In Sabah, we are eyeing several sites. We have identified one and are in discussions with the land owner," group managing director Tan Sri Syed Yusof Tun Syed Nasir told Business Times in an interview recently.

Casa Del Mar, owned by Syed Yusof and Sultan Sharafuddin Idris Shah, the Selangor state ruler, owns the 34-room Casa Del Mar boutique hotel in Langkawi.


The hotel is managed by Singapore's HPL Hotel & Resorts Pte Ltd, which is controlled by Ong Beng Seng, a close associate of Syed Yusof and the Sultan.

Casa Del Mar is building its second property, dubbed Casa Del Rio boutique hotel and serviced apartments, in Malacca, for RM85 million. It is due to be ready by September 2009.

It also plans to develop 40 hectares at Terengganu's Perhentian Island. The land is owned by the Sultan.

"We will build boutique hotels, resorts and villas at the site for some RM100 million," Syed Yusof said.

Also in Terengganu, the group will revive an abandoned project in the city centre and convert the property into a five-star boutique hotel this year.

"Boutique hotels peg good rates. Looking at trends these days, people want to stay in a more personalised environment, making them feel closer to home when they travel," Syed Yusof said.

"Demand for such rooms are rising and there are not that many boutique hotels here," he added.

Boutique hotels are small luxury hotels with limited rooms, often priced at more than US$150 (RM484.5) a room per night.

Typically, the hotels are unique in architectural style, have sophisticated interior design, and offer services and food at par with international standards.

Other properties owned by Syed Yusof are the 570-room Concorde Hotel Kuala Lumpur, the 381-room Concorde Shah Alam, the 338-room Concorde Inn KLIA and the 18-room Lakehouse in Cameron Highlands.

He also owns speciality restaurants like Saloma Theatre Restaurant, the Hard Rock Cafe, Planet Hollywood, Genki Sushi in Malaysia and Capital FM88.9, a new radio station.

By New Strait Times (by Sharen Kaur)

Penang island draws luxury home builders

The most expensive landed residential properties on the Penang island today are located in Tanjung Bungah, Tanjung Tokong and Batu Ferringhi in the North-East district, and Sungai Ara in the South-West district.

These properties are three-storey terraced, three-storey semi-detached and three-storey bungalows, which are priced between RM800,000 and RM3mil.

The builders are reputable developers from Kuala Lumpur and Penang.

Henry Butcher Malaysia (Penang) Sdn Bhd director Dr Teoh Poh Huat said: “Generally, the value of landed residential properties in these areas have appreciated by about 10% yearly since the dawn of the new millenium.”

Some of the completed Hill View Garden terraced houses in Tanjung Bungah.

He told StarBiz that due to high land cost and rising building material prices, it was no longer profitable for developers to build double-storey houses.

“About two years ago, developers here started to build three-storey homes with larger built-up areas and higher selling prices.

“Presently in the market, the selling price for a three-storey terraced starts from about RM800,000, while for a three-storey semi-detached house ranges from RM1.3mil to RM1.8mil, depending on the size.

“The three-storey bungalow unit is priced between RM1.8mil and RM3mil,” he said.

In Tanjung Bungah, Chong Co Group, a reputable developer with good track record, is developing the Hill View Garden, comprising about 200 units of three-storey terraced and three-storey semi-detached houses on a 20-acre site.

“These properties, priced between RM800,000 and RM1.8mil, are over 80% sold.

“They are selling well because of their large built-up areas that can cater to the needs of families living with their grandparents,” Teoh said.

The Hill View Garden three-storey homes have built-up areas ranging from 3,300 to 5,000 sq ft, depending on the type that come with four to five bedrooms, and porches large enough to accommodate three cars.

In Batu Ferringhi, similar types of three-storey landed residential properties were being developed, said Teoh.

“Blossom Time Sdn Bhd is launching in mid-2008 some 129 units of three-storey landed residential properties comprising semi-detached and bungalow homes, which are part of a RM400mil development called Ferringhi Park.

“Again, the emphasis is on the large built-up areas of the units, which come with five to seven rooms, depending on whether it is a semi-detached or a bungalow unit.

“The semi-detached units are priced at RM1.2mil, and the bungalows at RM1.8mil,” he said.

The semi-detached units have built-up areas of 3,995sq ft, while the bungalows 4,300sq ft.

Teoh said the first batch of 57 three-storey semi-detached and bungalow houses, launched last year, were over 80% sold.

By The Star - StarBiz (by David Tan)

Damansara Heights landscape changing

KUALA LUMPUR: The newly launched high-end residential suites, The Twins, by Panareno Sdn Bhd is setting a new landscape for Damansara Heights, a predominantly landed property residential area.

Eric Ooi, managing director of Knight Frank Malaysia Sdn Bhd, the exclusive marketing agent, said in a statement the demand for property in Damansara Heights was very encouraging. He said The Twins was 50% sold within the first two weeks of its exclusive preview.

Panareno is a joint venture between Malaysia's Lion Group and the real estate investment arm of American International Group Inc, Singapore-based Koh Maju, and Heeton Holdings Ltd.

The Twins features two identical towers built on a 2.17-acre site next to Pusat Bandar Damansara. They offer 318 luxury residential suites.

The standard units range from 766 to 2,078 sq ft, while the size of the penthouse suites is from 2,171 to 5,261 sq ft. It currently commands an average selling price of RM850 per sq ft.

“The Twins is an attractive residential property for local and foreign buyers because of its location and accessibility to PJ and KL,'' Ooi said.

“We haven't begun marketing the project overseas, but we have seen strong enquiries from Singapore, Taiwan and the Middle East buyers who are major investors in Malaysian property,” he said.

Apart from the project’s strategic location, he said, most buyers were impressed with the sleek and modern design of the towers, which are complimented by a practical and well-designed interior layout.

The luxurious facilities of modern living offered include pool facilities, landscaped gardens, three gymnasiums, a multi-functional clubhouse, and state-of-the-art home automation systems.

Panareno expects to complete the luxury high-rise residential project by 2010.

By The Star

Hijauan Kiara in own class

IF you are looking to buy or rent a condominium in Mont' Kiara in Kuala Lumpur, which would you choose?

Well, the newly completed freehold Hijauan Kiara stands out from the rest and makes me dream of owning one after seeing how my kids enjoyed themselves at the condominium's recreational deck one recent Sunday.

Part of the view of Hijauan Kiara in Mont' Kiara.

They were gleefully jumping on a trampoline that has no stand but is embedded on the ground! So if your child bounces out of the trampoline, the risk of falling or tripping is very much reduced. And, should they fall, they will land on thick artificial grass called Dutch “Royal Grass”. The company has spent more than RM200,000 just on the turfing.

Developed by Bukit Kiara Properties Sdn Bhd (BKP), Hijauan Kiara is special indeed!

It boasts of several “firsts”. It is the first and only completed condominium in Mont' Kiara with private lift lobbies. It is also the first condo to have granite pools; the first to have a “Spa Island”, the first to use the German-imported Dedon garden furniture, not to mention the unique trampoline.

There are seven blocks surrounding a large recreational area with steps leading to a tennis court. From the top deck, one can have a sweeping view of several existing condominiums in Mont' Kiara and right below are colourful bougainvilleas, planted on terraces right down to the 25-metre adult pool, children's pool, children's playground, four cosy reading pavilions and a jacuzzi sundeck.

There is also a squash court, viewing deck, hot and cold pool and indoor and outdoor gymnasium.

The layout design reflects the ingenuity and efforts of BKP's managing director N. K. Tong and his team, who have put in many interesting features to ensure that Hijauan Kiara's residents have their own private “oasis” or “green haven”.

For example, there is a meditation garden with two reading pavilions at a corner of the upper deck of the recreational area. At the other corner of this deck is the “Spa Island”, another special feature of Hijauan Kiara.

The fact that Tong himself has young children could partly explain why so much thought had been put into making Hijauan Kiara a paradise for children.

Tong said: “We are always willing to explore and experiment with new ideas but at the same time, we must ensure that all innovative ideas are user friendly and robust.

“We have three areas for people to have their barbecue gatherings or hold parties without bumping into each other. Today, a project such as the Hijauan Kiara would have 420 units instead of 188 units,” he added.

The Hijauan Kiara is the second of BKP's three projects in Mont' Kiara. The first was Aman Kiara development comprising bungalows and duplex condovillas, sited opposite Hijauan Kiara.

The third is the Verve Suites; an 881-unit, four-tower serviced residence featuring fully furnished designer suites in four ID themes.

Unlike Verve Suites' smaller units, those at Hijauan Kiara are spacious with units ranging from 2,000 to 3,732 sq ft and prices from RM782,000 to RM3mil (average RM460 per sq ft. Recent transaction is said to have hit RM620 per sq ft). The biggest penthouse is 5,400 sq ft in size. Maintenance charge is 30 sen per sq ft.

Chief operating officer Vincent Lim said there were only four units left unsold. “Every few months, we have a new theme. The current one is called Going The Extra Mile,” he said, adding that the units would be handed over soon.

By The Star (by S.C. Cheah)

Bandar Raya to launch RM2bil projects this year

BANDAR Raya Development Bhd (BRDB) will launch projects with gross development value (GDV) of RM2bil locally this year while keeping its eyes open for opportunities abroad.

Chief executive officer Datuk Jagan Sabapathy said the developer was actively looking at the Middle East, South-East Asia, particularly Vietnam and Indonesia, as well as India where it hoped to seal at least one deal this year.

Datuk Jagan Sabapathy

“As we are already in Pakistan, looking at India is quite easy. There is also a lot of potential in South-East Asia with the growing population,” he told StarBiz in an interview.

“As for Vietnam, there is a huge amount of money flowing in from Vietnamese living in Australia, Europe and the US. So there is a massive pool of cash to tap,” he added.

BRDB has an integrated development in Lahore, Pakistan.

Launched two years ago, the 325-acre project is Pakistan's first master-planned development featuring bungalows, semi-detached homes, condominiums and retail centre.

“We were hoping to put up the next phase in the first quarter this year but I suspect we will be pushing it back a little to allow things to settle down there,” he said.

All of the firm's future projects, Jagan said, would be high-end premium developments, which typically yield better margins.

“We are a good premium developer with over 40 years experience. We can start doing new things or we can take whatever it is that we do well and continue working on it.

“Instead of diversifying in terms of products and services, we are looking to diversify geographically,” he said.

In the Middle East, BRDB was studying potential deals in Oman and Saudi Arabia, Jagan said.

Locally, it expects to launch two upscale projects in Kenny Hills and Bangsar this year. “Both are currently at the approval stage,” he said.

CapSquare Residences II, an integrated commercial, retail and residential enclave, was expected to be launched in the second quarter 2008, he said.

Jagan said BRDB also targeted a series of launches aimed at introducing exclusive lifestyle living concept in Johor this year.

The company's high-end One Menerung in Bangsar and The Troika projects, which were launched in 2006, were doing well, with about 85% and 75% of the units sold respectively, he said.

BRDB recently expanded its land bank in the Klang Valley with the acquisition of 10.1ha freehold land fronting the Federal Highway in Subang Jaya.

The RM125.9mil purchase is for a mixed development featuring retail, office suites and apartments. The project has a potential GDV of RM1.5bil

“If all is well, this will provide another catalyst for sustainable earnings growth for BRDB post-2009,” OSK Research said.

On plans for real estate investment trust, Jagan said: “There is no reason why we won’t consider it. We will contemplate the matter but it is too early right now.”

By 2010, he said, the company would have more than one million sq ft of Grade A commercial space under its stable.

By The Star (by Yvonne Tan)

Kenanga Wholesale City hub for fashion products

The Kenanga Wholesale City, which is earmarked for completion by early 2010, is poised to be a landmark hub for Kuala Lumpur's wholesale fashion and apparel business.

The complex, located on a 3.2-acre site in Jalan Kenanga off Jalan Loke Yew, will be the wholesale centre for fashion, costume jewellery and leather products.

“Besides raising the profile of Kuala Lumpur's wholesale business, the complex offers a destination for international buyers to buy the country's fashion products in bulk from local wholesalers,” Kenanga Wholesale City Sdn Bhd group chief executive Yee Ia Howe said.

Malaysia's total annual trade in garment and textile totalled some RM2bil. The country also exports over RM4bil worth of designer apparels.

Yee Ia Howe with a model of Kenanga Wholesale City.

Yee said his management would be working with the Malaysia Garments Wholesale Exports and Import Merchants Association to explore business opportunities in Indonesia, Singapore, Thailand, Taiwan and the Philippines.

Kenanga Wholesale City is developed by Central Market Venture Sdn Bhd, which is also managing the Kuala Lumpur Central Market.

The wholesale complex, with total gross floor area of 1.8 million sq ft, will have 790 retail lots of between 300 and 1,000 sq ft.

He said only 49% of the space would be available for sale at RM1,950 to RM3,300 per sq ft, while the remaining 51% would be leased at rental rates between RM10 and RM25 per sq ft.

The project will have an expected gross development value of RM1bil. Construction work will start in March and completion is targeted within two years.

“The complex will meet the dire need for additional retail space in the Kenanga area, which has grown into a wholesale fashion hub in the past 20 years.

Currently, there are 350 business operators in the surrounding three-storey shop lots on about 35 acres.

“We are capitalizing on this demand and we hope to offer a modern and comfortable alternative to the traditional shop lots in the area,” Yee said.

Buyers of the retail space will be offered an attractive leaseback option. Those who lease their lots to the company will be guaranteed an 8% annual rate of return for the first three years with option to extend by another two years.

“We are confident the complex will be fully tenanted as we have a growing list of potential tenants registered with us,” Yee said.

According to him, the company has given up saleable space to ensure there will be enough escalators, service lifts and comfortable walkways.

“We will also bring in necessary service providers such as courier companies, forwarding agents and ATM outlets to make it convenient for business owners.”

The top level of the complex will house convention facilities for events such as trade and fashion shows.

By locating the wholesale complex in the Kenanga area, Yee said the surrounding infrastructure would also benefit, including in better landscaping and widening of adjacent roads.

“We are optimistic that the local council will follow suit by upgrading neighbouring facilities as we will be replacing some rundown buildings with Kenanga Wholesale City.”

With more than 1,800 car parks and loading docks for lorries in the complex, the project would also ease the parking problem in Jalan Kenanga, Yee said, adding that traffic flow in the area should also improve.

By The Star

Kha Seng to ride on niche retail sector

KHA SENG Corp Sdn Bhd is keen to tap into the growing niche retail developments, including lifestyle shopping malls, concept stores and wholesale complexes, especially in the garment and fashion trade in the Klang Valley.

The company has several retail projects in the planning stages, which will commence in a few months.

Managing director Bernard Bong said Kha Seng would concentrate its resources on the Klang Valley's niche retail, wholesale and commercial projects in the next two years.

The Jalan Kasturi pedestrian area beside Kuala Lumpur Central Market will be upgraded into a covered street mall.

“The retail market in Kuala Lumpur has grown tremendously in a very short time and we believe there is a need for a breather before the market can absorb more sizeable format malls.

“However, there is still an inadequate supply of commercial spaces that cater to specific needs and the community in a particular locality.

“Our retail projects will target this niche market and we aim to do that with our latest project, Kenanga Wholesale City,” Bong told StarBiz.

Kha Seng, a garment manufacturer and wholesaler, diversified into real estate investment 15 years ago and eager to “ride the waves” of the growing commercial property market.

Within three years of taking over the management of Kuala Lumpur Central Market, it has successfully turned around the building into a vibrant culture, arts and craft centre.

In 2004, the company paid RM38mil for the building's remaining 60 years lease in an open tender by Pengurusan Danaharta Nasional Bhd.

Central Market has 60,000 sq ft of net lettable space housing 250 shop lots, including 30 to 50 kiosks, that sell a variety of art, handicrafts, batik, souvenirs and gifts.

To encourage the right tenants to establish business in Central Market, the company has maintained rental rates at between RM15 and RM40 per sq ft. “The rates will be up for review when the time is right,” Bong said.

His decision to expand in the retail real estate sector is largely due to Central Market's immense success.

Expressing his satisfaction in the company's investment, he said Kha Seng was on its way to recoup its capital and turn in profits within the next 18 months.

“There is probably no other centres nationwide that is similar to Central Market, given its one of a kind combination of location, culture, history and shopping.

“However, as a retail-focused company, we will consider investing in other potential projects if the right opportunity comes along,” Bong said.

On plans to expand the Central Market, he said Kha Seng had submitted plans for development of the riverside into a historical walk and alfresco dining outlets, while the Jalan Kasturi pedestrian area would be converted into a covered mall with decorated kiosks and for street performances.

“Once the finer details are ironed out, we will start work on the next phase of upgrading,” Bong added.

On future projects, he said Kha Seng had paid RM78mil to purchase the UE3 shopping centre in Cheras from the project’s receiver. The building was formerly own by the MBf group.

Bong said the company would spend RM100mil to refurbish and reposition the shopping complex into a lifestyle mall with specialty stores for the middle-income market.

The refurbished complex, with net lettable space of 600,000 sq ft, will be opened in the first half of 2009.

A 360-room business class hotel will also be constructed on the adjoining land.

Meanwhile, the Kenanga Wholesale City along Jalan Kenanga, off Loke Yew, will be an integrated commercial complex for fashion apparel wholesale and retail trade.

Kenanga Wholesale City Sdn Bhd bought a 3.1-acre plot from Tenaga Nasional Bhd in the middle of 2007 and the RM1bil project is schedule for completion early 2010.

Bong, also managing director of Kenanga Wholesale City, is looking at building similar concept projects for other wholesale businesses in the surrounding area or in other parts of Kuala Lumpur.

On Kha Seng's earlier plans for the redevelopment of the Klang bus station, he said it had been replaced with another retail project on a nearby land. “We are in negotiation with the landowner,” he said.

By The Star (by Angie Ng)

PJ Development to expand overseas

PJ DEVELOPMENT Holdings Bhd (PJD) plans to build sizeable properties in Vietnam and Thailand with reputable local partners to further expand its real-estate operations.

"We have a few plans to grow but we will do it carefully to seize the best opportunities. This will be the first time we are going overseas to build properties," chief operating officer Lim Lian Seng told Business Times in an interview.

PJD will also launch new properties in Kuala Lumpur and Johor in the first half of the year, worth RM810 million, Lim said.

The first project it is planning is Swiss-Garden Residences along Jalan Galloway in Kuala Lumpur.

The project, to be launched in April, comprises two blocks of serviced apartments with 478 units.

The units, with built-up areas of 550 to 2,700 sq ft each, have yet to be priced.

Another project to be launched in April is Duta Kingsbury @Sri Hartamas, which consists of 64 units of super-link homes and 203 units of condominiums.

The built-up area for the super-link homes ranges from 3,482 to 7,806 sq ft, packaged in different designs.

In Pulai, Johor, PJD will launch Mont' Callista in May, a gated and guarded community on a (13ha site.

It will include 192 units of three-storey semi-detached houses with built-up area of 3,009 to 4,035 sq ft.

"We expect sales to be encouraging based on previous records, when more than half of the properties at our existing developments were snapped up within a few months of its launch," Lim said.

Last year, PJD launched Putri Hartamas, a new component at its current township in Johor, dubbed Taman Putri Kulai, that is being developed for RM1 billion.

Putri Hartamas comprises 210 units of terrace, bungalow and semi-detached homes. Some 30 per cent of the homes were snapped up within the first two months of its launch in November.

Another project, Impian Meridian in Subang Jaya, comprising three blocks of residential and commercial towers with 569 units launched in early 2007, is 80 per cent sold.

"We are scouting for more land in Kuala Lumpur, Kuantan, Johor Baru and Penang for future launches. This is despite having 1,500 acres (608ha) of undeveloped land in these areas, and in Damai Laut," Lim said.

The property division contributes 50 to 60 per cent to PJD's revenue.

For the 12 months to June 2007, PJD posted a net profit of RM42.4 million and revenue of RM549.4 million.

By New Straits Times (by Sharen Kaur)

Aeon still weighing REIT options

RETAILER Aeon Co (M) Bhd is in no rush to set up its planned real estate investment trust (REIT), comprising seven properties valued at about RM700 million, as it views the local REIT market to be still at its infancy.

"We are still watching and evaluating the industry. We are doing our own study on the REIT," an official from Aeon who declined to be named said.

He added that Aeon, which operates the Jusco department store-cum-supermarket chain, felt that since the Malaysian REIT industry was only about three years old, his company preferred to take the wait-and-see stand.

"We feel the REIT industry is still new," he said.

On whether Aeon would consider listing the trust vehicle elsewhere, the official said: "We will consider all options ... but at this stage it is still too early to say."

Last April, chairman Datuk Abdullah Mohd Yusof said that it was looking at the possibility of spinning a REIT because of the number of properties it has - all of which merit some attention.

Four of the properties are in the Klang Valley, namely, Alpha Angle Shopping Centre in Kuala Lumpur, Jusco Metro Prima Shopping Centre in Kepong, Aeon Cheras Selatan Shopping Centre and Bukit Raja Shopping Centre in Klang.

Two outlets are in Johor - Jusco Taman University Shopping Centre and Aeon Tebrau City Shopping Centre.

The seventh outlet is Jusco Melaka Shopping Centre.

Aeon has a total of 18 Jusco outlets throughout Peninsular Malaysia. It also runs the Max Value supermarket chain, the Jusco Home Centre and Aeon Wellness health and beauty store.

The company has announced plans to open stores in Seberang Prai, Penang, and Ampang in Kuala Lumpur this year.

By New Straits Times (by Vasantha Ganesan)

Committed to saving rivers

MRCB Environment specialises in rehabilitation and conservation

MRCB Environment Sdn Bhd's core activity as an environmental solutions provider has enabled the company to be very involved with the local community and its surroundings.

The company, established in 2003, has undertaken several projects to conserve the environment. It specialises in the rehabilitation and conservation of beaches and rivers in the country.

The idea to set up MRCB Environment, which is a 55% owned subsidiary of Malaysian Resources Corp Bhd (MRCB), first surfaced in 2000, said its director Dr Shaharizuan Shafiei.

Dr Shaharizuan Shafiei showing the Kuala Sungai Pahang river mouth area where MRCB Environment will build a breakwater system.

MRCB is traditionally well known in the “brick-and-mortar” businesses such as construction of roads, buildings, highways and power generation plant.

Shaharizuan, who is also vice-president and infrastructure and environment division head of MRCB, said there was concern that certain businesses of MRCB might be on the decline at the beginning of 2000.

“We decided to go into an area that, while we generated income, we would also be doing something for the public which makes us feel good. So, what is better than working on projects related to the environment?”

At the same time, environmental awareness among Malaysians was just picking up, but no one really spoke about beach conservation and restoration, river rehabilitation and maintenance of the water quality.

In a way, MRCB saw the potential in its environmental activities not only as a business venture but also something in line with its corporate social responsibility (CSR) initiatives to promote eco-friendly environments and encourage domestic tourism.

MRCB Environment's pilot project was the Teluk Cempedak beach rehabilitation in Pahang, which was awarded by the Department of Irrigation and Drainage (DID) in 2003. The beach was suffering from erosion due to loss of sand.

Shaharizuan said the company employed the pressure equalisation module (PEM) system, combined with sand nourishment, to rehabilitate the coastline of Teluk Cempedak.

“The water table will be reduced, hence making the sand on the beach drier. Erosion at beaches happens because the sand is wet and saturated,” he explained.

PEM pipes were installed under the seabed to assist the pressure from the ground water level and stimulate sand sedimentation. The beach was sand nourished to achieve a wider beach profile, after which additional PEM pipes were installed under the new beach to reduce erosion.

The project was completed in 2004 and the sand nourishment had increased the beachfront of Teluk Cempedak by 80m to 100m.

Shaharizuan said after that, the company was given a small contract by DID to maintain the beach for three years.

MRCB Environment also deployed a similar solution when it received an interim award from DID in 2005 to conserve 3km of beach at Teluk Tekek, Tioman Island.

The project involved construction of a sea wall, which together with the PEM system, was expected to minimise erosion and enhance its recreational value for tourism-related activities.

Besides that, a study was initiated to look into the pollution in various rivers in Teluk Tekek, drainage problems and mooring facilities.

The company also carried out an awareness programme to protect the rivers from further pollution, said Shaharizuan.

“Besides completing the project, the key thing is to create awareness among the village folk to not discharge kitchen effluents directly into the river. It ought to be treated first.

“DID introduced the grease trap, also known as simpack, at selected villages, and they were installed in food outlets on the island,” he explained.

Shaharizuan said the education provided was not only on the installation of the grease trap but proper maintenance.

“We continue to visit the owners of food outlets and explain to them that the Government has spent millions to restore the beach and they can play their role by using the grease traps provided by the local authority,” he added.

Another project undertaken by MRCB Environment, which also gave it the opportunity to improve the lives of a local community, was the protection of Kuala Sungai Pahang river mouth.

The company received an interim award worth about RM60mil in mid-2006 to improve the river mouth on a design and build basis.

The interim works included immediate dredging and design of breakwater at the river mouth.

Once completed, the project will provide safer navigation channels for fishermen surrounding the area, especially during the monsoon season, and mitigate flooding in the area.

Shaharizuan said that with the implementation of the breakwater system as well as dike retention pond and pump in the towns such as Pekan located further up the river, losses due to flood could be reduced by 30%.

MRCB Environment has received an interim letter of award to rehabilitate Sungai Prai, Penang, and a letter of intent to rehabilitate Sungai Kuantan, Pahang. It had also submitted proposals for work on three rivers in Johor and Sungai Juru, Penang.

The company worked with various parties, including foreign universities and local consultants, on some of its projects.

Shaharizuan lamented the lack of environmental engineers in the country.

On plans to enlarge the pool of talent, he said: “It is quite difficult, but our key strength is our people. We source them from everywhere; we take in ex-DID staff and employ civil engineer who are keen on this area and train them. We hope to churn out very good environmental engineers in the future.”

MRCB Environment's revenue contribution to MRCB is not significant at present, but the potential in this area of work is enormous. Shaharizuan said there was a lot of work to be done in Malaysia.

“If we concentrate here alone, it should be more than enough to sustain us for many years,” he added.

On the possibility of seeking out projects abroad, Shaharizuan said: “We are an expert in Malaysia but there are a lot of companies already doing this overseas. If we go to other countries, we have to be competitive in terms of pricing.”

The company also plans to venture into other projects related to the environment such as garbage disposal, mangrove restoration and erosion control.

By The Star (by Chan Ching Thut)

Brisk sales at Nam Fatt’s Gallery@U-Thant

An artist's impression of Gallery@U-Thant

KUALA LUMPUR: Nam Fatt Corp Bhd has sold over 80% of the condominium units of the recently launched Gallery@U-Thant.

In a statement, it said Gallery@U-Thant, which is located in the upscale embassy residential area, was the company's maiden foray into the super high-end residential market.

Gallery is a niche 50-unit development with a gross development value of over RM200mil. Most of the units were sold within 90 days of the sales launch, largely through private invitation in collaboration with Colliers International Property Consultants, it said.

“We have been very pleasantly surprised by the tremendous market confidence in the Nam Fatt name by locals as well as expatriates. For a development in the price range of Gallery, these numbers are unheard of,” said property division general manager Erric Tan.

“We are especially appreciative of Trans Penang Inn Sdn Bhd, our strategic land owner partner, and our consultants, including Colliers International for their assistance and effort in developing new marketing, branding and public relations strategies,” he said.

Tan said the buyers were a mix of local elite and professional expatriates.

“These are not the typical buyers we marketed to in the past. This change will undoubtedly have a significant impact on our future marketing, branding and positioning endeavours,” he said.

By The Star

Hektar REIT pays higher dividends

KUALA LUMPUR: Hektar Real Estate Investment Trust has announced that the dividend per unit for the 13-month period ended Dec 31, 2007 would be 10.71 sen, 11.2% higher than it had forecast in its prospectus.

In a statement, it said gross revenue for the year reached RM78.3mil, which was 5% above forecast and net income (realised) stood at RM36.7mil.

Hektar REIT, managed by Hektar Asset Management Sdn Bhd, reported net income per unit of 11.46 sen, which was 19% higher than forecast when the REIT was launched in December 2006.

“We are happy with our full year results for 2007,” said chief executive officer Datuk Jaafar Abdul Hamid.

“Our net income exceeded our budget forecast, allowing us to distribute to our investors a larger dividend than expected, about 11.2% higher than what we promised.”

Hektar REIT's shopping mall portfolio continued to hold steady with almost full occupancy of 96.9%, of which Subang Parade is 99.9% occupied and Mahktota Parade, 93.9% occupied.

Traffic for Subang Parade increased to 7.8 million visits in 2007, up 32.6% since its refurbishment in 2006 while Mahkota Parade's traffic edged up 2.1% to 8.8 million visits in 2007.

By The Star

KK promises an eco-friendly waterfront project

Over the last few decades the narrow shoreline of the once serene coastal town of Kota Kinabalu (KK) has changed.

What KK was, in the 1950s or 1960s, is now almost unrecognisable to those who grew up close to it.

It has rapidly changed its face over the last three decades with most of the city centre built on reclaimed land.

Impressive real estate: An artist’s impression of the Kota Kinabalu waterfront.

Today, Kota Kinabalu City Hall is striving to strike a balance in preserving its old environment, while pushing for development to make the city a world-class leisure and tourism spot, in line with the objectives of the Sabah Development Corridor (SDC).

This rainforest city of over 300,000 people will play the leading role as the gateway to Sabah, which aims to be one of the most liveable places in Asia.

For city planners it is also crucial that the city is ready to impress and help the state woo some RM105bil in development projects for investments under the SDC’s 18-year overall economic development plan.

Environmentalist, however, are worried about pushing Kota Kinabalu's shoreline further into the sea as they believe further changes would bring irreparable consequences to city’s very own treasure.

Their concern is on the proposed Kota Kinabalu waterfront project that offers to transform Kota Kinabalu into an integrated mixed development along a section of the Kota Kinabalu town’s coastline.

The Kota Kinabalu City Waterfront, expected to be completed by 2010, will feature the key attraction of a 2km long boardwalk, built using eco-friendly materials rising above the sea on stilts.

Waterfront Urban Development Sdn Bhd (WUD) is carrying out the entire project in collaboration with Kota Kinabalu City (DBKK).

The project is among those identified under the SDC that aims to make Sabah a major destination for both leisure and business tourism and has also caught the attention of Kuwait Finance House (Malaysia) Bhd (KFHMB) and a consortium of Middle Eastern and Malaysian investors.

At the launch of the SDC, a tripartite agreement was signed between WUD, KFH and Intonasi Intan Sdn Bhd witnessed by Prime Minister Datuk Seri Abdullah Ahmad Badawi

WUD managing director Reymee Mohamed Hussein said the development would incorporate environmentally friendly features like hi-tech LED lighting, energy conserving air conditioning systems and solar powered pedestrian lighting along the boardwalk.

Reymee, together with Geoffrey P.J. Lee, conceptualised the Kota Kinabalu City Waterfront development masterplan with DBKK.

He gave the assurance that there would be no reclamation work.

“It is primarily to increase the role of a coastal city like Kota Kinabalu to become a catalystfor the modernisation and development in Sabah,” said Reymee, adding that the RM500mil project was conceptualised after studying several thriving world class international waterfront attractions like Darling Harbour (Australia), Cape Town Waterfront (South Africa), Victoria Harbour (Hong Kong), Canary Wharf (London) and Clark Quay Riverside (Singapore).

The development will also spur economic growth for Kota Kinabalu and provide employment and new business opportunities to local residents and businesses.

“Kota Kinabalu City Waterfront will feature one of the longest city waterfront boardwalks in Asia and is poised to become the city’s prime tourist attraction. It will be an integral part of Sabah’s hospitality industry,” Reymee said.

Sabah Environment Protection Association president Datuk Sue Jayasuriya said there was a need to ensure that any development did not turn the rainforest city into a concrete jungle.

By The Star

Properties to get boost from growth region

The East Coast Economic Region (ECER) can boost the property sector and property prices in the long term, industry experts and real estate consultants say.

"It's a long term game and the higher impact would be on industrial development in buildings and land for industrial," Henry Butcher Malaysia's property research director Fahariah Abdul Wahab said.

It is learnt that Kuantan can sustain another 150,000sq m of retail space, Kota Baru some 110,000 sq m and Kuala Terengganu some 135,000 sq m.

Fahariah said although the ECER hold about 14.8 per cent of Malaysia's population, it only recorded up to 9.1 per cent of residential, 6.5 per cent of commercial and 8.3 per cent of industrial property transaction in the country in 2006.

In terms of value, the residential sector in ECER only constituted 4.2 per cent of the national total.

"The ECER has the capability to create the needed mass and demand to propel property development in the region," Fahariah said.

She said if all ECER's initiatives are implemented smoothly, it would also give an advantage to the tourism industry and prospects for new hotel and resorts in the region.

"There are a lot of players interested in investing in hotels in the region.

"I believe before investing they will be looking at land prices and viability, because in terms of hotels, the region still lacks good quality hotels on the mainland where you need five to six star hotels to attract foreign and business tourists," she said.

Meanwhile, Ho Chin Soon Research Sdn Bhd director Ho Chin Soon said even though he sees some constraints in land sales and the impact skewed towards the oil and gas and agriculture sectors, the ECER will have positive spillover effects to property prices and property development activity in the region.

DPZ Asia's urban design consultant Kamal Ariffin Zahrain said he believes there is good development potential for the region as ECER's masterplan is structured to take full advantage of it.

"We see good viability as the master plan is well integrated and flexible enough to allow new ideas and changes to be made in future," he said.

By New Straits Times (by Azlan Abu Bakar)

Faber plans six launches worth RM340 million

KUALA LUMPUR: Faber Group Bhd is planning six launches for this year, with a gross development value of RM340 million.

This includes three phases in its Laman Rimbunan project in Kepong, semidees and bungalows in Taman Danau Desa on Jalan Klang Lama and a high-end development known as Taman Hill Top Perdana in Kota Kinabalu, Sabah, said its managing director Adnan Mohammad.

“We are confident our coming launches in Kepong and Taman Danau Desa will be well received, following strong take-up of our earlier projects there. The first two phases in Laman Rimbunan has achieved takeups of more than 95% while we have also successfully handed over our Danau Villa project in March last year,” he said. Danau Villa is a RM54.6 million development in Taman Danau Desa consisting of 64 units of 3-storey link semi-dees priced between RM712,000 and RM1.1 million.

Adnan was speaking after the group’s EGM recently to seek shareholders’ approval for the disposal of Sheraton Hanoi Hotel. Faber is discontinuing its hotel business as part of a restructuring exercise and focusing on its core businesses of property development as well as healthcare and non-healthcare facilities management.

In Laman Rimbunan, Faber will be launching terraced houses, semi-dees, and medium-cost apartments. The terraces, priced from RM560,000, have built-ups of 3,033 sq ft onwards, while the semi-dees, with built-ups ranging from 3,700 sq ft to 4,800 sq ft, are priced from RM1.1 million.

The apartments averaging 850 sq ft are priced at RM120,000 onwards. The 100.81- acre project is a joint venture with Metro Kajang Bhd.

The group also plans to offer high-end homes, including semi-dees and bungalows, on a 5.6-acre tract in Taman Danau Desa with prices from RM1.4 million for the semidees and from RM2.8 million for the bungalows. The built-ups range from 3,800 sq ft to 4,000 sq ft for the semi-dees, while the bungalows are sized between 4,454 sq ft and 8,203 sq ft. Adjacent to the area, on 2.8 acres of land, Faber will also be launching luxury condominiums priced from RM370,000, with
built-ups from 1,285 sq ft.

Faber property division senior general manager Khalid Abdul Majid said there is a ready market for hig-end developments as people living in the area are becoming more affluent and looking to upgrade. “Our target market for our new project in Taman Danau Desa includes those from the middle to upper income group,” he told theSun.

The targeted launch is in the second quarter of this year. “The new project in Taman Danau Desa is a proposed gated and guarded development and its location next to the Desa Lake is another draw for purchasers,” he added.

He noted that properties in the area have also experienced good capital appreciation.

“A unit in Danau Villa that was originally priced at RM700,000 was recently transacted at RM1 million,” he said.

Meanwhile, Taman Hill Top Perdana will comprise semi-dees and bungalows with built-ups ranging between 2,973 sq ft and 7,090 sq ft. The units have an average price of RM910,000 each.

Adnan said Faber would continue to search for land with potential in strategic locations The company currently has about 70 acres of undeveloped land in Kepong, Taman Danau Desa and Sabah.

“Our priority will be in the Klang Valley, though we will not be limiting ourselves as we will also consider pocket-sized land with potential for niche developments.

“Our preference is to go for joint ventures with other property developers or landowners due to the lower capital outlay, but we will not discount making outright purchases of the land if the price is reasonable,” he said.

By theSun (by Yap Yew Jin)

More cross-border REITs on the horizon

PETALING JAYA: More cross-border, joint venture real estate investment trusts (REITs) are expected this year, following heightened interest from foreign investors, said Datuk Mohamed Azahari Mohamed Kamil (pix), managing director of AmanahRaya-JMF Asset Management Sdn Bhd (manager of AmanahRaya REIT).



“There is Middle East interest to list their properties through REITs in Malaysia and Singapore,” he said, adding that the average yield of 7% and 4.9% for REITs in Malaysia and Singapore, respectively, are considered attractive to investors who seek long-term investments with stable returns in the real estate sector.

He was speaking as a panelist at the recent REIT Review Asia 2008 conference in Singapore.
Other key speakers included ParkwayLife REIT CEO Justine Wingrove and Peter Churchouse, the property director of LIM Advisors Hong Kong.

According to Mohamed Azahari, Singapore and Malaysia currently dominate the South East Asia REIT markets with a total market capitalisation of about US$22 billion (RM72 billion), and this is expected to increase consistently with more investors considering REITs for their portfolio.

“With the recent sub-prime mortage and banking crisis, there will be opportunities for asset managers to conduct portfolio rebalancing and we believe that REITs will continue to be preferred in view of their defensive risk profiles,” he said.

He added that liquidity is still the main consideration for investors and REIT managers’ continuous efforts to grow the funds and improve yields are helping to attract investors.

“The credibility of the sponsors who are able to identify properties in the pipeline for future acquisition by REITs also generates further interest among investors,” he said.

AmanahRaya REIT is the second largest REIT in Malaysia, with assets of RM645.52 million. It recently collaborated with Gapuraprima Group, an Indonesian developer listed on the Jakarta Stock Exchange, and aims to list a regional REIT in Singapore this year.

By theSun (by Yap Yew Jin)

Education town in Bandar Springhill

West Synergy Sdn Bhd, a 60-40 joint venture between MUI Properties Bhd and Chin Teck Plantations Bhd, has teamed up with UCSI Education Sdn Bhd to establish an education township at its Bandar Springhill development in Negri Sembilan.

UCSI vice-chancellor and president Peter T.S. Ng said the cost is still being worked out, but is likely to be in the region of "a few hundreds of million ringgit".

The signing ceremony was witnessed by Deputy Prime Minister Datuk Seri Najib Razak in Putrajaya yesterday.

Ng said the education township will be developed in three phases on a 64ha site in Port Dickson and is targeted for completion in 2016.

The first phase will see the development of a fully-equipped international school with residential facilities in May, which will be ready for its first intake by September 2009, as well as a state-of-the-art 500-bed medical centre.

The main campus, which is the second phase of the development, will house a medical sciences faculty, a management and information technology faculty, a faculty for applied sciences as well as a centre dedicated to continuous research in Blue Ocean strategy.

The third phase will see the development of an incubation centre for UCSI's subsidiaries and spin-off companies as well as facilities for marine biology studies.

West Synergy chairman Wong Aun Phui said the education township project will create a "win-win" situation for both companies as well as benefit the wider community in Port Dickson and Seremban.

Meanwhile, Ng said the Bandar Springhill development has been around for the past 10 years with infrastructure and telecommunications systems already in place.

By New Straits Times (by Rupa Damodaran)

AmFirst REIT posts RM8mil net income

KUALA LUMPUR: AmFirst REIT (real estate investment trust) recorded a net income of RM8mil, net property income of RM10.5mil and revenue of RM15.2mil for its third quarter ended Dec 31, 2007.

Am ARA REIT Managers Sdn Bhd acting chief executive officer Anthony Ooi Kwee Yang said in a statement that while growth via acquisition was important, the REIT manager was also focused on asset enhancement.

“We will undertake phased retrofitting/upgrading works on two of our (five) buildings.

“This is with the aim of not only retaining but attracting quality tenants to further improve the performance and yield of the buildings,” Ooi said.

He added that the REIT manager was looking at increasing contribution from the 2,300 parking bays it owned.

He said that in the nine months to Dec 31, the REIT's portfolio of properties achieved average rental reversion of 13.9% on the back of continued improvement in office rental rates.

“With 38% of current leases up for renewal this year and another 49% in 2009, positive reversion is expected to continue,” Ooi added.

By The Star

Prangin Mall developer ordered to get strata title

A High Court in Penang has ordered the developer of Prangin Mall, Getaran Unggul Sdn Bhd, to apply for the building's strata title within six months.

Justice John Louis O’Hara yesterday allowed an application by eight of the mall's shop lot owners for a mandatory injunction against the developer, requiring the developer to apply for the strata title.

He gave the order in the presence of the plaintiffs’ counsel Datuk V. Sithambaram and Lee Khai, and the developer's counsel V. Jeevaretnam and J. Shamesh.

The court also fixed July 10 for the continuation of the suit proper against the developer, management company Prangin Mall Sdn Bhd, and landlord of the mall’s common property Istimewa Sejati Sdn Bhd.

The eight plaintiffs are suing the defendants for failing to apply for strata title, mismanagement of the complex by allowing “temporary'' stalls to be set up and collection of rental from the stalls without approval of the local authorities.

The plaintiffs are Ng Cheng Oo, Lai Saw Looi, Ch'ng Hun Pin, Wu Mei Eng, Ch'ng Giap Theng Sdn Bhd, Heng Ah Leak, Loh Siam Kiang and Ch'ng Hun Boon.

They filed the suit on April 26, 2005, as a representative action on behalf of purchasers of the 607 shop lots in the mall.

By The Star