PROPERTY development will continue to be the core driver of the soon-to-be-enlarged Eastern & Oriental (E&O) group, with over RM4 billion projects to be launched within the next three years.
Managing director Datuk Terry Tham said in five years, property development would account for 60 per cent of the group's earnings, while property investment and hospitality/lifestyle business would equally contribute 20 per cent each.
"Our property investment division will allow us to maintain prime commercial assets worth RM1 billion over the next five years," he said, adding that this will provide the group with recurring income and capital appreciation.
Tham also said expansion plans are under way for the group's existing E&O Hotel and Lone Pine Hotel as well as increasing the number of its food and beverage outlets under the Delicious group.
He added that an additional 150 suites will be added to E&O Hotel's 101 suites while Lone Pine Hotel will see an increase of 50 rooms.
Tham said this at a press conference in Kuala Lumpur yesterday after the extraordinary general and court-convened meetings where shareholders voted in favour of the merger between E&O Property Development Bhd and E&O Bhd (EOB).
Expected to be fully completed by the middle of this year, the enlarged E&O group will have a market capitalisation in excess of RM1.7 billion, based on the enlarged EOB share capital as at February 11.
The shareholders of the two companies will be given three options before the merger can take place, namely full share swap, fixed cash and share combination or maximised cash.
Tham said a total of RM213 million cash funding is readily available should all the minority shareholders elect for the fixed combination option.
The full share swap option is on the basis of 1,000 unit of E&O Property shares for 1,100 unit of EOB shares while the fixed combination will involve 650 units of E&O Property shares for 715 units of EOB shares while the remaining 350 units of E&O Property shares is exchangeable for cash of RM875.
Tham also said EOB has signed a memorandum of understanding with Cultural Cluster Sdn Bhd on Thursday to form a joint-venture company for the development of a 78ha parcel of land within the Iskandar Development Region.
Cultural Cluster is a special purpose development vehicle owned by Al-Nibras 2 Ltd, a Labuan-based private fund company managed by Kuwait Finance House (Labuan) Bhd which is a wholly-owned subsidiary of Kuwait Finance House (Malaysia) Bhd.
By New Straits Times (by Roziana Hamsawi)
Saturday, February 16, 2008
SP Setia sees revenue rise
New and existing projects to rake in RM1.8b
PENANG: SP Setia Bhd expects to generate about RM1.8bil in sales revenue from new and existing property projects in the country and overseas in the financial year ending Oct 31.
Speaking at a press conference during the company’s Chinese New Year celebration here, group managing director and chief executive officer Tan Sri Liew Kee Sin said new property launches in Vietnam were expected to rake in sales of RM300mil to RM400mil.
Existing and new projects in Penang were seen contributing about RM250mil, he said, adding that it planned to launch Setia Vista, a RM250mil landed property scheme in Relau, in April.
Tan Sri Liew Kee Sin posing for a photo at the SP Setia Show Village.
“The Eco Garden scheme, to be launched in Johor Baru (tomorrow), and other existing projects in Kuala Lumpur would generate the rest of the (targeted) revenue,” Tan said.
He said the Setia Pearl Island project in Sungai Ara had generated RM286mil in sales revenue since its launch last April.
“We are interested in introducing ecological-friendly development projects to Penang.
“In our projects, every plant, tree and shrub is planted to serve a particular ecological purpose.
“Landscaping and ecological planning is what differentiates SP Setia from other developers,” he said.
Tan added that the group was currently sourcing for land in Penang to launch new projects.
By The Star (by David Tan)
SP Setia sees up to RM400m sales from 'EcoLakes' project
PROPERTY developer SP Setia Bhd is targeting between RM300 million and RM400 million in sales of properties at its soon-to-be-launched 'EcoLakes' project in Vietnam.
Its group managing director and chief executive officer Tan Sri Liew Kee Sin said the company, which has obtained the necessary approvals to launch the project in April this year, will use the project to showcase Malaysian expertise in the property development sector in Vietnam.
The 200ha integrated development, which carries a gross development value of RM2.5 billion, is located in Ho Chi Minh City.
"We will ensure that this maiden project of ours in Vietnam carries the same high standards executed in Malaysia as we brand ourselves as one of the best developers in that country," he told reporters during a Chinese New Year gathering in Penang yesterday.
Last month, SP Setia announced that it has clinched a deal to jointly build a 32ha mixed development project in Ho Chi Minh City, which caters to expatriates and senior staff working in the Saigon High Technology Park.
Liew said SP Setia, which is expecting to record sales of RM1.8 billion for its 2008 fiscal year ending October 31, is expecting its projects in Penang to contribute RM300 million to the total.
He said the company's "SP Vista" project which will be launched in the second quarter this year, will see 225 units of three-storey homes being built plus apartments. Spread out on 8.4ha in Relau, it is set to carry a development value of RM250 million.
SP Setia's maiden foray into Penang is the Setia Pearl Island project, which features 1,200 landed homes on a 45ha site.
To be developed over the next five to six years, the project comprises three-storey terraced homes, semi-detached units and commercial lots, and is located between 4km and 5km from the proposed site of the second Penang bridge at Batu Maung, 10km from the Penang Bridge and 20km from George Town.
By New Straits Times (by Marina Emmanuel)
Its group managing director and chief executive officer Tan Sri Liew Kee Sin said the company, which has obtained the necessary approvals to launch the project in April this year, will use the project to showcase Malaysian expertise in the property development sector in Vietnam.
The 200ha integrated development, which carries a gross development value of RM2.5 billion, is located in Ho Chi Minh City.
"We will ensure that this maiden project of ours in Vietnam carries the same high standards executed in Malaysia as we brand ourselves as one of the best developers in that country," he told reporters during a Chinese New Year gathering in Penang yesterday.
Last month, SP Setia announced that it has clinched a deal to jointly build a 32ha mixed development project in Ho Chi Minh City, which caters to expatriates and senior staff working in the Saigon High Technology Park.
Liew said SP Setia, which is expecting to record sales of RM1.8 billion for its 2008 fiscal year ending October 31, is expecting its projects in Penang to contribute RM300 million to the total.
He said the company's "SP Vista" project which will be launched in the second quarter this year, will see 225 units of three-storey homes being built plus apartments. Spread out on 8.4ha in Relau, it is set to carry a development value of RM250 million.
SP Setia's maiden foray into Penang is the Setia Pearl Island project, which features 1,200 landed homes on a 45ha site.
To be developed over the next five to six years, the project comprises three-storey terraced homes, semi-detached units and commercial lots, and is located between 4km and 5km from the proposed site of the second Penang bridge at Batu Maung, 10km from the Penang Bridge and 20km from George Town.
By New Straits Times (by Marina Emmanuel)
Sabah to set up one-stop investment authority
SABAH will set up a one-stop investment authority called the Sabah Economic Development Investment Authority (Sedia) to facilitate investments in the state.
Executive director of Institute for Development Studies in Sabah, Datuk Dr Mohd Yaakub Johari said Sedia will be governed by a board of directors comprising the prime minister and the Sabah chief minister as co-chairmen.
"It will operate in line with best practices of corporate governance recognised globally and run by a pool of top-notch management talent.
"Sedia will ensure that investors in the identified high priority sectors have one point of contact to obtain the necessary approvals, licences and available incentives for set-ups," he said.
Dr Yaakub said Sedia will also ensure that infrastructure and logistic projects are timely executed.
He was speaking at a briefing on the Sabah Development Corridor for the South Korean Ambassador to Malaysia, Yang Bong-ryull, during the latter's visit in Kota Kinabalu yesterday.
Yang was leading a nine-member delegate to look at business opportunities in Sabah, particularly in petrochemical and plantation sectors.
By New Straits Times (by Julia Chan)
Looking for property ? Step into Asia Move Machine's outlet in KLCC
A new retail property outlet named Propertrack.com.my, operating in Kuala Lumpur City Centre (KLCC), welcomes walk-in property investors interested in the secondary market within the Klang Valley.
Set up by Asia Move Machine Sdn Bhd, this property retail outlet provides licensed real estate agents an alternative marketing platform.
"What we have set up here is a shop where investors can walk in and browse through detailed brochures of residentials and commercial units available in Klang Valley," said Asia Move Machine managing director Stephen Hodgson.
"It is complementary to the classified advertisements in the newspapers as we offer a more personalised and detailed approach to property investment," he said in a recent interview held at his office along Jalan Pinang in Kuala Lumpur.
The retail property concept, inspired from Europe, offers more value-added services for real estate agents as they can treat it like an extension of their own offices.
Within the confines of propertrack.com.my retail outlet along Jalan Pinang, there are 3,800 advertisement space for real estate agents to market their properties.
Each block of space measures half an A4-sized paper.
Citing waivers of real property gains tax (RPGT) and foreign investment committee (FIC) approvals, Hodgson is optimistic of an encouraging response to propertrack. com.my from real estate agents and walk in property investors.
He related a recent incident where a Singaporean family crossed Jalan Pinang (after coming out of the Aquaria at the KL Convention Centre) and walked into propertrack.com.my.
"As they browsed through the properties advertised here they gave serious thought to invest in a couple of condomimiums within KLCC," he said.
"We're optimistic of gaining a small slice of the secondary property market within Klang Valley, especially with the waiver of RPGT and FIC approvals," he added.
By New Straits Times
Set up by Asia Move Machine Sdn Bhd, this property retail outlet provides licensed real estate agents an alternative marketing platform.
"What we have set up here is a shop where investors can walk in and browse through detailed brochures of residentials and commercial units available in Klang Valley," said Asia Move Machine managing director Stephen Hodgson.
"It is complementary to the classified advertisements in the newspapers as we offer a more personalised and detailed approach to property investment," he said in a recent interview held at his office along Jalan Pinang in Kuala Lumpur.
The retail property concept, inspired from Europe, offers more value-added services for real estate agents as they can treat it like an extension of their own offices.
Within the confines of propertrack.com.my retail outlet along Jalan Pinang, there are 3,800 advertisement space for real estate agents to market their properties.
Each block of space measures half an A4-sized paper.
Citing waivers of real property gains tax (RPGT) and foreign investment committee (FIC) approvals, Hodgson is optimistic of an encouraging response to propertrack. com.my from real estate agents and walk in property investors.
He related a recent incident where a Singaporean family crossed Jalan Pinang (after coming out of the Aquaria at the KL Convention Centre) and walked into propertrack.com.my.
"As they browsed through the properties advertised here they gave serious thought to invest in a couple of condomimiums within KLCC," he said.
"We're optimistic of gaining a small slice of the secondary property market within Klang Valley, especially with the waiver of RPGT and FIC approvals," he added.
By New Straits Times
Friday, February 15, 2008
Significant changes to Housing Act
Last month, we examined some of the significant changes made to the statutory sale and purchase agreement for a housing accommodation comprising land and building. In part two this month, we look at significant changes made to the statutory agreement for a housing accommodation comprising a building or land intended to be subdivided into parcels held under strata titles, brought about by the recently amended 1989 Regulations, which came into operation on Dec 1, 2007.
Agreements for buildings or land intended for subdivision into parcels (Schedule H)
The title to the Schedule H agreement has been changed to “Building or land intended to be subdivided into parcels”. A recent amendment to the Strata Titles Act, 1985, has permitted land with buildings of not more than four storeys to be subdivided into land parcels to be held under strata titles. This new strata scheme will meet the needs of a new housing development concept referred to as Gated Community Schemes.
Parcels free from encumbrances before vacant possession
In the event the land upon which the development is taking place is encumbered to any bank, the amended Schedule H requires the proprietor/developer to deliver to the purchaser or his financier, a copy of the redemption statement and undertaking issued by such bank, in respect of the purchaser’s parcel, immediately after the date of the agreement. Previously, the time period to deliver such redemption statements and undertakings was not specified.
Loans
The purchaser’s financier is now required to furnish to the developer an unconditional undertaking to pay the loan sum and in return the developer will undertake to refund the loan sum in the event the transfer of the parcel cannot be registered in favour of the purchaser for any reason that is not attributable to the purchaser.
Right to initiate and maintain actions
The purchaser may now initiate and maintain any action or suit in any court or tribunal provided that his financier is notified of the action or suit within 14 days after the action or suit has been filed.
Defaults by purchasers
A new event of default has been added. If the purchaser fails to pay any sum or sums payable (other than any instalment payable and any interest thereon) for any period in excess of 28 days after the due date, the developer may take steps to annul the sale of the parcel.
Strata title and transfer
The duty and obligation of the proprietor/ developer to execute an instrument of transfer in favour of the purchaser, within 21 days upon issue of the strata title to the parcel has been extended. The executed instrument of transfer shall now be forwarded to the purchaser together with the strata title. This is, of course, subject to full payment of the purchase price and
observance of all terms and conditions by the purchaser.
Position and area of parcel
The purchaser is entitled to an adjustment of the purchase price if the area of the parcel shown in the strata title is less than the area shown in the building plan by more than 2% instead of 3%.
Infrastructure and maintenance
Under the new Building and Common Property (Maintenance and Management) Act, 2007 (Act 663), a Joint Management Body (JMB) is to be established if the management corporation is not in existence at the time of delivery of vacant possession.
The purchaser will contribute to the infrastructure maintenance costs, until they are taken over by the appropriate authority or the JMB and the developer shall provide to the purchaser a list and description of the infrastructure and the expenditure incurred in the maintenance thereof.
Service charges
The purchaser shall pay to the developer service charges for the maintenance and management of the common property and for services provided by the developer until the establishment of the JMB. Thereafter services charges shall be payable to the JMB.
In respect of such service charges, the purchaser will pay four months’ in advance instead of one month’s deposit and three months in advance. All services charges received by the developer shall be paid into a Building Maintenance Account established under Act 663.
The service charge statement prescribed in the Fifth Schedule has been slightly modified. Service charges shall be paid within fourteen days, instead of seven days.
Sinking fund
From the date the purchaser takes possession of his parcel, he is liable to contribute a sum equivalent to 10% of the services charges to a sinking fund established under Schedule H. All funds accumulated in this sinking fund, which is maintained by the developer, are held in trust for all purchasers, and the developer is required to transfer any accumulated funds into a sinking fund established under Act 663.
It is pertinent to note that before the establishment of the JMB, the contribution to the Schedule H sinking fund is a separate and additional payment. Once the JMB is established, the sinking fund established under Act 663 will comprise such portion of the contribution to the Building
Maintenance Fund as may be determined by the JMB and the purchaser is no longer required to make a separate and additional payment to such sinking fund.
Delivery of vacant possession
The purchaser may now occupy the housing accommodation when the certificate of completion and compliance has been issued, water and electricity supply are ready for connection, and the purchaser has paid all monies payable and due. The certificate of fitness for occupation is no longer required.
Wong: The defect liability period has been raised to 24 months
Defect liability period
The defect liability period has been increased from 18 months to 24 months and a purchaser may make a claim before the expiry of 18 months or 24 months after he takes vacant possession. Once a notice of claim by a purchaser has been made, the developer’s solicitors may not release the monies held by him until the developer’s architect has certified that the defects, shrinkage or other faults have been repaired and made good by the developer.
Assignment
The purchaser may assign all his rights and interest in his parcel to a third party without the consent of the proprietor or the developer, provided he has fully paid the purchase price and complied with all terms and conditions of the agreement, or if before full payment, the developer and the purchaser’s financier have exchanged undertakings mentioned earlier.
Additional Plans
Two additional plans are required to be attached: the layout plan and the common facilities plan.
Transitional provisions
In the case of the Schedule G discussed last month and the Schedule H discussed in this part, the amended 1989 Regulations do not affect the validity of any contract for the sale and purchase of a housing accommodation entered into after April 12, 2007, but before Dec1, 2007, and such
contract shall continue to have full force and effect even if inconsistent with or contrary to any provisions of the amended Schedule G or H. Further, if on Dec 1, 2007, a contract of sale has been signed in any phase of a housing development, the developer may continue to use the previous Schedule G or H agreements until all the housing accommodation in the said phase of housing development have been sold.
The writer is the deputy chairman of the Conveyancing Practice Committee, Bar Council, Malaysia www.malaysianbar.org.my
Note: This column is brought to you by the Malaysian Bar Council for your information only. It does not constitute legal advice. You should therefore seek professional legal advice for your specific needs. Neither the Malaysian Bar nor the Sun Media Corporation Sdn Bhd shall be liable to any reader who suffers losses as a result of relying on this column.
Article by theSun (by Andrew Wong)
Agreements for buildings or land intended for subdivision into parcels (Schedule H)
The title to the Schedule H agreement has been changed to “Building or land intended to be subdivided into parcels”. A recent amendment to the Strata Titles Act, 1985, has permitted land with buildings of not more than four storeys to be subdivided into land parcels to be held under strata titles. This new strata scheme will meet the needs of a new housing development concept referred to as Gated Community Schemes.
Parcels free from encumbrances before vacant possession
In the event the land upon which the development is taking place is encumbered to any bank, the amended Schedule H requires the proprietor/developer to deliver to the purchaser or his financier, a copy of the redemption statement and undertaking issued by such bank, in respect of the purchaser’s parcel, immediately after the date of the agreement. Previously, the time period to deliver such redemption statements and undertakings was not specified.
Loans
The purchaser’s financier is now required to furnish to the developer an unconditional undertaking to pay the loan sum and in return the developer will undertake to refund the loan sum in the event the transfer of the parcel cannot be registered in favour of the purchaser for any reason that is not attributable to the purchaser.
Right to initiate and maintain actions
The purchaser may now initiate and maintain any action or suit in any court or tribunal provided that his financier is notified of the action or suit within 14 days after the action or suit has been filed.
Defaults by purchasers
A new event of default has been added. If the purchaser fails to pay any sum or sums payable (other than any instalment payable and any interest thereon) for any period in excess of 28 days after the due date, the developer may take steps to annul the sale of the parcel.
Strata title and transfer
The duty and obligation of the proprietor/ developer to execute an instrument of transfer in favour of the purchaser, within 21 days upon issue of the strata title to the parcel has been extended. The executed instrument of transfer shall now be forwarded to the purchaser together with the strata title. This is, of course, subject to full payment of the purchase price and
observance of all terms and conditions by the purchaser.
Position and area of parcel
The purchaser is entitled to an adjustment of the purchase price if the area of the parcel shown in the strata title is less than the area shown in the building plan by more than 2% instead of 3%.
Infrastructure and maintenance
Under the new Building and Common Property (Maintenance and Management) Act, 2007 (Act 663), a Joint Management Body (JMB) is to be established if the management corporation is not in existence at the time of delivery of vacant possession.
The purchaser will contribute to the infrastructure maintenance costs, until they are taken over by the appropriate authority or the JMB and the developer shall provide to the purchaser a list and description of the infrastructure and the expenditure incurred in the maintenance thereof.
Service charges
The purchaser shall pay to the developer service charges for the maintenance and management of the common property and for services provided by the developer until the establishment of the JMB. Thereafter services charges shall be payable to the JMB.
In respect of such service charges, the purchaser will pay four months’ in advance instead of one month’s deposit and three months in advance. All services charges received by the developer shall be paid into a Building Maintenance Account established under Act 663.
The service charge statement prescribed in the Fifth Schedule has been slightly modified. Service charges shall be paid within fourteen days, instead of seven days.
Sinking fund
From the date the purchaser takes possession of his parcel, he is liable to contribute a sum equivalent to 10% of the services charges to a sinking fund established under Schedule H. All funds accumulated in this sinking fund, which is maintained by the developer, are held in trust for all purchasers, and the developer is required to transfer any accumulated funds into a sinking fund established under Act 663.
It is pertinent to note that before the establishment of the JMB, the contribution to the Schedule H sinking fund is a separate and additional payment. Once the JMB is established, the sinking fund established under Act 663 will comprise such portion of the contribution to the Building
Maintenance Fund as may be determined by the JMB and the purchaser is no longer required to make a separate and additional payment to such sinking fund.
Delivery of vacant possession
The purchaser may now occupy the housing accommodation when the certificate of completion and compliance has been issued, water and electricity supply are ready for connection, and the purchaser has paid all monies payable and due. The certificate of fitness for occupation is no longer required.
Wong: The defect liability period has been raised to 24 months
Defect liability period
The defect liability period has been increased from 18 months to 24 months and a purchaser may make a claim before the expiry of 18 months or 24 months after he takes vacant possession. Once a notice of claim by a purchaser has been made, the developer’s solicitors may not release the monies held by him until the developer’s architect has certified that the defects, shrinkage or other faults have been repaired and made good by the developer.
Assignment
The purchaser may assign all his rights and interest in his parcel to a third party without the consent of the proprietor or the developer, provided he has fully paid the purchase price and complied with all terms and conditions of the agreement, or if before full payment, the developer and the purchaser’s financier have exchanged undertakings mentioned earlier.
Additional Plans
Two additional plans are required to be attached: the layout plan and the common facilities plan.
Transitional provisions
In the case of the Schedule G discussed last month and the Schedule H discussed in this part, the amended 1989 Regulations do not affect the validity of any contract for the sale and purchase of a housing accommodation entered into after April 12, 2007, but before Dec1, 2007, and such
contract shall continue to have full force and effect even if inconsistent with or contrary to any provisions of the amended Schedule G or H. Further, if on Dec 1, 2007, a contract of sale has been signed in any phase of a housing development, the developer may continue to use the previous Schedule G or H agreements until all the housing accommodation in the said phase of housing development have been sold.
The writer is the deputy chairman of the Conveyancing Practice Committee, Bar Council, Malaysia www.malaysianbar.org.my
Note: This column is brought to you by the Malaysian Bar Council for your information only. It does not constitute legal advice. You should therefore seek professional legal advice for your specific needs. Neither the Malaysian Bar nor the Sun Media Corporation Sdn Bhd shall be liable to any reader who suffers losses as a result of relying on this column.
Article by theSun (by Andrew Wong)
Green light for KL Grand Hyatt
LONG OVERDUE: An artist's impression of Grand Hyatt KL - website picture.
The Brunei Investment Agency, one of the world's largest sovereign wealth funds with assets of US$30 billion (RM97.2 billion), has finally been given the green light to develop the Grand Hyatt hotel on Jalan Pinang, Kuala Lumpur.
Business Times was informed that the proposal, which was submitted in 2005, was approved in late November 2007, after several amendments to its original proposal had been made.
Brunei Investment Agency official Suharafadzil Yusof when contacted said the project had been approved.
However, he declined to say when work will start or when the project will be ready. Apart from a 40-storey five-star hotel, the building will also house service apartments and offices.
The hotel alone may cost about RM360 million, industry executives estimated, if it sticks to a plan to have 450 rooms.
There was also no response to Business Times' query from Hyatt International's office in Singapore.
Industry experts say that if construction begins immediately, it could take anything between 30 and 36 months to be ready.
This means that the hotel may be operational in 2010.
In a press release put out in 2007, it was reported that international destination-design firm Wimberly Allison Tong & Goo (WATG) served as the design architect, together with local firm GDP Architects.
WATG did not reply to e-mail queries.
The 2007 release said that the hotel lobby is located at the top of the building and guests at the lobby will have an impressive 360-degree view of downtown KL.
The project is slated to open to the public in December 2010, the statement said.
Earlier plans to open a Grand Hyatt Duta came to an end as the project was never completed.
The Hyatt Group in 1994 gave the contract to develop the RM570 million Grand Hyatt Duta to Kuala Lumpur Landmark Sdn Bhd, a subsidiary of Olympia Industries Bhd.
Mycom Bhd, the holding company of Olympia, then teamed up with Kuala Lumpur Landmark to develop a 52-storey building to house its headquarters and the hotel.
However, construction was halted in July 1998, when the group encountered financial difficulties during the 1997/1998 economic downturn.
The Grand Hyatt Duta was to have been completed in 1997. Until today, the hotel at the corner of Jalan Sultan Ismail and Jalan Ampang remains partly completed. The Hyatt Group is no longer associated with the project.
The Hyatt Group also operates the Hyatt Regency Kinabalu, Hyatt Regency Johor Baru and Hyatt Regency Kuantan Resort.
By New Straits Times - (Business Times) (by Vasantha Ganesan)
Tanco revives Port Dickson project
Three phases of stalled Palm Springs Resort to be launched this year
KUALA LUMPUR: Resorts operator and property developer Tanco Holdings Bhd will, for the first time in 10 years, be launching this year three phases of a previously stalled major project, Palm Springs Resort, in Port Dickson.The company had been launching several small phases of its Bandar Country Homes development in Rawang in the past few years, but these had been slow, business development director Andrew Tan told StarBiz.
For Palm Springs Resort which comprises 15 phases, Tanco aims to launch Duta Grande comprising 800 units of 410 to 830 sq ft resort suites with a gross development value (GDV) of about RM260mil ; SPA Village with 70 chalets ranging from 1,200 to 1,400 sq ft worth RM70mil in GDV; and Palm Springs Boulevard consisting of 24 shop lots with built-up areas of 1,200 sq ft with a GDV of RM15mil.
The company, which came out of PN17 classification on Jan 17 after debt restructuring and the emergence of a new lead banker in Lehman Brothers Commercial Corp Ltd, also plans for more launches at its Rawang development.
Andrew said the Rawang development was mature, with about 10,000 homes and 45,000 residents.
The company plans to launch in Rawang phase 2 of its Greenwood Park district consisting of 155 terrace houses of about 1,700 sq ft priced from RM240,000. The total GDV for this phase is RM70mil.
It will also launch Ivory Heights, comprising 52 bungalows with built-up areas of 3,200 sq ft, with prices starting from RM600,000.
In the company’s debt restructuring, Lehman provided a two-year loan facility of about RM239.6mil in November last year to repay Tanco’s existing debt obligations, to mainly local banks.
Tanco director Datuk Lynne Tan said with only one lender now, the company would be able “to work on our assets” and re-launch its projects as well as the timeshare sales that it had been so successful with in the past.
Tanco was also looking to build up its landbank, she added.
Lynne said the focus in the near term would be on Palm Springs Resort, with another 400 acres of undeveloped prime seafront land with condominiums, a hotel, a waterpark and marina in the works.
Tanco would be banking on selling most of these projects en bloc to foreign investors, Andrew said.
He said as many international portfolio funds were mandated to invest in the Klang Valley or in resorts, given that property prices in the Golden Triangle had doubled in the past 12 months, the country’s resorts could attract such funds.
By The Star (by Loong Tse Min)
UEM Land’s profit catalyst
Nusajaya to help it post record sales and profit by 2012
PETALING JAYA: UEM Land Sdn Bhd expects record sales and profit by 2012 when development of its Bandar Nusajaya in the Iskandar Development Region (IDR) picks up momentum.
Managing director Wan Abdullah Wan Ibrahim said the development of Nusajaya should reach its “tipping” point by 2011 as new activities and projects were being launched.
Targeted for completion in 30 years, Nusajaya is expected to incur a total gross development cost of RM55bil.
UEM Land is currently working on 11,000 acres in Nusajaya.
The sale of 4,500 acres to Khazanah in 2006–2007 for RM1.9bil has reduced the company's gearing to 0.48 time from 17.38 times before.
Upon completion, Nusajaya will have 100,000 homes and a population of 500,000. Besides the residential component, the other growth catalysts for Nusajaya include a theme international resort, education city (EduCity), medical city (MediCity), waterfront development, Johor's new administrative centre and the Southern and Industrial Logistics Centre, an industrial estate development.
Analysts said the expected consolidation of UEM Land's parent, UEM World Bhd, would raise the profile and financial capability of UEM Land to actively promote its Nusajaya development.
UEM World is expected to announce today a major corporate exercise that could involve the streamlining of the group's business structure.
“The proposed consolidation of UEM World will make it a more focused group in the property business. It will be able to leverage and take advantage of its huge land ownership in the IDR,” an analyst at a local brokerage said.
Wan Abdullah said the company needed to establish considerable level of activities and critical mass to ensure Nusajaya's success in a shorter time.
“Going by its normal pace, the development will take about 180 years but we are fast tracking it by working with strategic partners who are competent in their areas of expertise,” he told StarBiz recently.
So far, the development of Nusajaya is progressing steadily with 11,000 homes completed by various developers and delivered to buyers.
The value of the units sold by UEM Land last year rose to RM485mil compared with RM80mil in 2006.
The sales value does not include other contributors to revenue, such as sale of land during the de-gearing exercise, revenue from construction of the new administrative centre and other strategic land sale to joint-venture partners.
By April, Johor's administration will be moving to Nusajaya. To date, 95% of the Mentri Besar's office and the state legislative assembly office have been completed.
UEM Land is negotiating to build the Federal administrative complex, which will be under the build, lease and transfer model.
According to Wan Abdullah, many developers are vying to participate in the development of Nusajaya and that the company would be selective and only team up with those that could add value to the development.
“The partners must have the right technical expertise, financial strength and marketing network to add value and contribute positively to the development of the sprawling township,'' he said.
UEM Land has tied up with a few partners, including Gamuda Bhd to undertake the development of Horizon Hills and with Limitless LLC, a unit of Dubai World, to build 900 waterfront homes in Puteri Harbour.
The 1,200-acre Horizon Hills resort development is a 50:50 joint venture between UEM Land and Gamuda.
Since the first product was launched in March last year, sales have to date reached RM350mil.
In December, the company signed a 40:60 joint venture with Limitless.
“We are looking at working with more competent partners to offer more quality property products as we are targeting the regional market,” Wan Abdullah said.
By The Star (by Angie Ng)
PETALING JAYA: UEM Land Sdn Bhd expects record sales and profit by 2012 when development of its Bandar Nusajaya in the Iskandar Development Region (IDR) picks up momentum.
Managing director Wan Abdullah Wan Ibrahim said the development of Nusajaya should reach its “tipping” point by 2011 as new activities and projects were being launched.
Targeted for completion in 30 years, Nusajaya is expected to incur a total gross development cost of RM55bil.
UEM Land is currently working on 11,000 acres in Nusajaya.
The sale of 4,500 acres to Khazanah in 2006–2007 for RM1.9bil has reduced the company's gearing to 0.48 time from 17.38 times before.
Upon completion, Nusajaya will have 100,000 homes and a population of 500,000. Besides the residential component, the other growth catalysts for Nusajaya include a theme international resort, education city (EduCity), medical city (MediCity), waterfront development, Johor's new administrative centre and the Southern and Industrial Logistics Centre, an industrial estate development.
Analysts said the expected consolidation of UEM Land's parent, UEM World Bhd, would raise the profile and financial capability of UEM Land to actively promote its Nusajaya development.
UEM World is expected to announce today a major corporate exercise that could involve the streamlining of the group's business structure.
“The proposed consolidation of UEM World will make it a more focused group in the property business. It will be able to leverage and take advantage of its huge land ownership in the IDR,” an analyst at a local brokerage said.
Wan Abdullah said the company needed to establish considerable level of activities and critical mass to ensure Nusajaya's success in a shorter time.
“Going by its normal pace, the development will take about 180 years but we are fast tracking it by working with strategic partners who are competent in their areas of expertise,” he told StarBiz recently.
So far, the development of Nusajaya is progressing steadily with 11,000 homes completed by various developers and delivered to buyers.
The value of the units sold by UEM Land last year rose to RM485mil compared with RM80mil in 2006.
The sales value does not include other contributors to revenue, such as sale of land during the de-gearing exercise, revenue from construction of the new administrative centre and other strategic land sale to joint-venture partners.
By April, Johor's administration will be moving to Nusajaya. To date, 95% of the Mentri Besar's office and the state legislative assembly office have been completed.
UEM Land is negotiating to build the Federal administrative complex, which will be under the build, lease and transfer model.
According to Wan Abdullah, many developers are vying to participate in the development of Nusajaya and that the company would be selective and only team up with those that could add value to the development.
“The partners must have the right technical expertise, financial strength and marketing network to add value and contribute positively to the development of the sprawling township,'' he said.
UEM Land has tied up with a few partners, including Gamuda Bhd to undertake the development of Horizon Hills and with Limitless LLC, a unit of Dubai World, to build 900 waterfront homes in Puteri Harbour.
The 1,200-acre Horizon Hills resort development is a 50:50 joint venture between UEM Land and Gamuda.
Since the first product was launched in March last year, sales have to date reached RM350mil.
In December, the company signed a 40:60 joint venture with Limitless.
“We are looking at working with more competent partners to offer more quality property products as we are targeting the regional market,” Wan Abdullah said.
By The Star (by Angie Ng)
Thursday, February 14, 2008
Metropolitan Square’s appeal
PETALING JAYA: There has been a significant increase in foreign interest for Saujana Triangle Sdn Bhd's Metropolitan Square mixed development in Damansara Perdana.
According to the developer’s operations senior manager Preetie Boler, the development’s properties are attracting buyers and tenants from Korea, Singapore, Japan and Europe.
Currently, about 30% to 35% of the buyers for units in Metropolitan Square are foreigners but Boler expects the figure to increase in the future.
One of the completed condominium blocks and commercial properties in Metropolitan Square
“We have some foreign purchasers coming from the Mont’Kiara area who are attracted to our reasonable prices and the environment of the development,” she said. The developer is a subsidiary of MK Land Holdings Bhd.
“Located on a 17-acre leasehold tract in the self-contained Damansara Perdana township, residents have access to a wide variety of commercial facilities, which are supported by nearby amenities including major shopping centres, private and international schools, hotels, and medical institutions,” she said.
It also has a 28,000 sq ft clubhouse, which has facilities such as a swimming pool, gymnasium, tennis courts and a multipurpose hall. It is accessible via several major highways including the
Penchala Link, Damansara Puchong Highway (LDP), North Klang Valley Expressway (NKVE) and the North South Highway.
Metropolitan Square is targeted at yuppies, expatriates and investors.
Since its launch at the end of 2003, two condominium blocks in Metropolitan Square have already been completed and handed over to purchasers. Its latest condominium and serviced apartments block have achieved take-ups of 95% and 20% since their respective launch and soft launch in end-2004 and end-2007.
Built-ups for the 300 condominium units range from 975 sq ft to 1,259 sq ft, with prices of RM375,000 onwards, while the 422 serviced apartments, priced between RM178,500 and RM425,000, have built-ups from 450 sq ft to 1,166 sq ft. The former is expected to be complete
by the middle of this year with a gross development value (GDV) of RM110 million while the latter is targeted for completion in 2010 with a GDV of RM115 million. Two more condominium
phases are scheduled for launch in the future.
Boler said Damansara Perdana has good potential for capital appreciation as property prices there are much lower compared to other nearby townships such as Mont’Kiara, Bangsar, Damansara Heights and Taman Tun Dr Ismail.
“Based on our records, the capital appreciation for units [in Metropolitan Square] upon handover, ranges from 20% to 30%,” she said, adding that rental yields for the commercial units and first two condominium blocks averages at about 8%. Residential units in the development are being rented out at RM1,500 and above.
In conjunction with Chinese New Year, the developer is having an ongoing sales campaign for Metropolitan Square until the end of this month. Purchasers of the condominiums are eligible for a RM10,000 discount, a 32-in LCD TV, and free sale and purchase agreement (SPA) fees, while those buying the serviced apartments get a RM5,000 discount and free SPA fees during the promotion period.
By theSun (by Yap Yew Jin)
According to the developer’s operations senior manager Preetie Boler, the development’s properties are attracting buyers and tenants from Korea, Singapore, Japan and Europe.
Currently, about 30% to 35% of the buyers for units in Metropolitan Square are foreigners but Boler expects the figure to increase in the future.
One of the completed condominium blocks and commercial properties in Metropolitan Square
“We have some foreign purchasers coming from the Mont’Kiara area who are attracted to our reasonable prices and the environment of the development,” she said. The developer is a subsidiary of MK Land Holdings Bhd.
“Located on a 17-acre leasehold tract in the self-contained Damansara Perdana township, residents have access to a wide variety of commercial facilities, which are supported by nearby amenities including major shopping centres, private and international schools, hotels, and medical institutions,” she said.
It also has a 28,000 sq ft clubhouse, which has facilities such as a swimming pool, gymnasium, tennis courts and a multipurpose hall. It is accessible via several major highways including the
Penchala Link, Damansara Puchong Highway (LDP), North Klang Valley Expressway (NKVE) and the North South Highway.
Metropolitan Square is targeted at yuppies, expatriates and investors.
Since its launch at the end of 2003, two condominium blocks in Metropolitan Square have already been completed and handed over to purchasers. Its latest condominium and serviced apartments block have achieved take-ups of 95% and 20% since their respective launch and soft launch in end-2004 and end-2007.
Built-ups for the 300 condominium units range from 975 sq ft to 1,259 sq ft, with prices of RM375,000 onwards, while the 422 serviced apartments, priced between RM178,500 and RM425,000, have built-ups from 450 sq ft to 1,166 sq ft. The former is expected to be complete
by the middle of this year with a gross development value (GDV) of RM110 million while the latter is targeted for completion in 2010 with a GDV of RM115 million. Two more condominium
phases are scheduled for launch in the future.
Boler said Damansara Perdana has good potential for capital appreciation as property prices there are much lower compared to other nearby townships such as Mont’Kiara, Bangsar, Damansara Heights and Taman Tun Dr Ismail.
“Based on our records, the capital appreciation for units [in Metropolitan Square] upon handover, ranges from 20% to 30%,” she said, adding that rental yields for the commercial units and first two condominium blocks averages at about 8%. Residential units in the development are being rented out at RM1,500 and above.
In conjunction with Chinese New Year, the developer is having an ongoing sales campaign for Metropolitan Square until the end of this month. Purchasers of the condominiums are eligible for a RM10,000 discount, a 32-in LCD TV, and free sale and purchase agreement (SPA) fees, while those buying the serviced apartments get a RM5,000 discount and free SPA fees during the promotion period.
By theSun (by Yap Yew Jin)
Putrajaya Holdings in talks to sell building
PUTRAJAYA: Putrajaya Holdings Sdn Bhd (PJH) has identified three investors for the en bloc sale of its 26 Boulevard office building in Putrajaya's Precint 3, said chief executive officer Azlan Abdul Karim.
The investors comprised two local parties and one foreign purchaser, he said.
“We will give the first option (to purchase) to the local investors but we will, of course, consider the best offer,” Azlan told reporters at a seminar yesterday.
The 12-storey building has 48,000 sq m gross floor space and is valued at more than RM200mil.“We expect to finalise the sale by the beginning of the next quarter,” Azlan said, adding that PJH was also in negotiations to sell a parcel of land to a local investor but did not reveal the potential buyer's identity.
“We have an investor and will make an announcement by the end of this month,” he said.
Earlier in his presentation on Creating A Liveable And Vibrant Putrajaya, Azlan said more commercial projects should be emphasised in the federal administrative capital.
Azlan Abdul Karim
“When Putrajaya was developed, commercial amenities were not given enough emphasis.
“Because of that, Putrajaya has become too governmental, resulting in an imbalanced racial mix,” he added.
According to Azlan, Putrajaya needs more commercial amenities such as shopping complexes, night markets and cinemas to make it more vibrant.
“We have set up eight cineplexes and are looking for operators,” he said, adding that PJH was targeting to open five cineplexes, to be managed by Golden Screen Cinemas, next month.
Other notable projects by PJH include the Nexus World-School, an international school that will be managed by the Garden International School; and the Pullman Lakeside Putrajaya, a four-star hotel to be managed by Accor. These projects are slated to be up and running by September.
Azlan added that Putrajaya's distance from Kuala Lumpur was another cause for concern, suggesting that alternative forms of transportation such as light rail transit (LRT) and monorail be implemented.
According to him, Putrajaya is already equipped with “quite an extensive'' network of underground LRT and some overhead monorail lines and stations that are spaced out roughly 500m apart.
“The Government had appointed PJH to manage the construction of these (LRT and monorail) facilities. Despite an extensive network already in place, it is still not operational,” he said.
Azlan did not comment on why the LRT and monorail projects were not up and running, but added that the implementation of such service would greatly benefit the capital.
By The Star (by Eugene Mahalingam)
Putrajaya gets offer for office block
PUTRAJAYA Holdings Sdn Bhd, the master developer of the federal administrative capital, has received unsolicited offers and is close to selling en bloc a 12-storey office building in Precinct 3.
Chief executive officer Azlan Abdul Karim said two local parties and one foreign firm have offered to buy the entire block of 26 Boulevard, although it did not initially plan to sell the building. The block is estimated to worth over RM200 million, he said.
"We cannot be too sentimental as a developer. If the price is right we have to let it go. The first priority will be given to the local parties, but of course, price matters," he said in Putrajaya yesterday.
Azlan said a deal is likely to be concluded by the end of this quarter, or early next quarter.
The building, which uses double blazing glass as a key component, is designed to be energy-efficient as coating of the glass can absorb and then reradiate the sun's heat.
Measuring 48,000 sq m in gross floor area, Azlan said the building received its certificate of fitness last month and is already 90 per cent tenanted.
He said foreign investor interest in Putrajaya is growing although the company has yet to go into full swing in promoting properties in the city outside Malaysia.
Putrajaya Holdings made its first land sale to a foreign investor last July when it sold a 0.61ha site in Precinct 3 to Hong Kong-incorporated TRW Group for RM23.2 million.
It recently sold another piece of land around 1.2ha to local company, Malaysia Land Properties Sdn Bhd, which counts Hong Kong property tycoon Tan Sri David Chiu as a major shareholder.
Putrajaya Holdings is set to sign later this month its third land sale measuring 0.6ha, to a local company backed by foreign owners, Azlan said.
"Foreigners, like Chiu, are very bullish on the office space in Putrajaya. These property players believe that when they build the office lots here, people will eventually move from other more expensive cities like Singapore to Putrajaya," he said.
"Not only are the rentals here much cheaper compared to Kuala Lumpur, Putrajaya is also a well-planned city with full government support. They believe in the city's potential in the long run, judging from other planned administrative cities like Washington DC," he added.
By New Straits Times (by Chong Pooi Koon)
Chief executive officer Azlan Abdul Karim said two local parties and one foreign firm have offered to buy the entire block of 26 Boulevard, although it did not initially plan to sell the building. The block is estimated to worth over RM200 million, he said.
"We cannot be too sentimental as a developer. If the price is right we have to let it go. The first priority will be given to the local parties, but of course, price matters," he said in Putrajaya yesterday.
Azlan said a deal is likely to be concluded by the end of this quarter, or early next quarter.
The building, which uses double blazing glass as a key component, is designed to be energy-efficient as coating of the glass can absorb and then reradiate the sun's heat.
Measuring 48,000 sq m in gross floor area, Azlan said the building received its certificate of fitness last month and is already 90 per cent tenanted.
He said foreign investor interest in Putrajaya is growing although the company has yet to go into full swing in promoting properties in the city outside Malaysia.
Putrajaya Holdings made its first land sale to a foreign investor last July when it sold a 0.61ha site in Precinct 3 to Hong Kong-incorporated TRW Group for RM23.2 million.
It recently sold another piece of land around 1.2ha to local company, Malaysia Land Properties Sdn Bhd, which counts Hong Kong property tycoon Tan Sri David Chiu as a major shareholder.
Putrajaya Holdings is set to sign later this month its third land sale measuring 0.6ha, to a local company backed by foreign owners, Azlan said.
"Foreigners, like Chiu, are very bullish on the office space in Putrajaya. These property players believe that when they build the office lots here, people will eventually move from other more expensive cities like Singapore to Putrajaya," he said.
"Not only are the rentals here much cheaper compared to Kuala Lumpur, Putrajaya is also a well-planned city with full government support. They believe in the city's potential in the long run, judging from other planned administrative cities like Washington DC," he added.
By New Straits Times (by Chong Pooi Koon)
UEM World to unveil corporate exercise
UEM World Bhd, a diversified company 51.9 per cent-owned by Khazanah Nasional Bhd, will on Friday unveil a corporate exercise that will lead to a significant change in its business direction.
It told the stock exchange yesterday that the exercise would also involve four of its listed units, namely UEM Builders, Opus Group, Pharmaniaga and Cement Industries of Malaysia Bhd (CIMA).
It has controlling stakes in all four companies.
Some analysts speculated that the exercise may involve an asset swap between the UEM World and Khazanah, while others said UEM World may be looking to dispose of non-core assets so that it emerges as a pure property developer.
UEM World oversees Malaysia's biggest property project, the 9,712-hectare Nusajaya development in Johor.
"They may be looking to sell non-core assets to raise cashflow for the Nusajaya development," an analyst with a foreign research firm said.
There were also some analysts who suspect that UEM World's listed units may be privatised.
"Whatever the exercise, Khazanah will typically be looking to extract value from the companies," said Colbert Nocom, head of research at UBS Securities. He noted that all five of the companies are undervalued.
Trading in shares of all the companies have been halted since the afternoon session yesterday, pending the announcement. They will resume trade next week.
UEM World last traded 3 per cent higher to RM4.12; UEM Builder 1.6 per cent higher to RM1.26; Opus 3 per cent up to 86 sen; CIMA 3.7 per cent higher to RM5.60 and Pharmaniaga, 21.9 per cent up to RM3.78.
By New Straits Times (by Adeline Paul Raj)
Wednesday, February 13, 2008
Dijaya plans Jenjarom project launch in 2009
PETALING JAYA: Dijaya Corp Bhd plans to launch the first phase of the RM270 million mixed development on its recently acquired land in Jenjarom, Kuala Langat, Selangor, by end-2009, its managing director Tong Kien Onn told theSun.
“We have yet to decide on the final components of the proposed development, but it will comprise mainly residential properties.
The composition will depend on market studies yet to be carried out,” he explained.
Earlier this week Dijaya Corp announced that its wholly owned subsidiary Nadi Jelita Sdn Bhd had entered into a sale and purchase agreement with Beta Fame Sdn Bhd to acquire four parcels of freehold agricultural land, measuring 93.418 acres in Jenjarom, Kuala Langat, for RM29.5 million.
Tong said the project, which has yet to be named, will be targeted at the upgrader market of the local population in Jenjarom, Banting and its immediate surroundings who are looking for quality products. The site is located within the commercial center of Jenjarom town and along the Klang/ Banting road, which has been seeing rapid development.
The land acquisition for the project, which is slated for completion within six years, is in line with the developer’s direction to increase its landbank for development and to generate long-term sustainable income.
Dijaya Corp is synonymous with the development of its flagship project, the Tropicana Golf & Country Resort and the Damansara Indah Resort Homes.
In the Tropicana Golf & Country Resort, the developer is expecting to launch the first phase of its Tropicana Grande golf-course-fronting condominiums by the third quarter of the year.
Tropicana Grande, one of the final offerings in the resort development in Petaling Jaya, is tagged at an estimated price of RM500 psf.
There will be 298 units with built-ups from 2,208 to 6,138 sq ft.
Tong with a scale model of the integrated development of Tropicana City
Meanwhile, construction on its nine-acre freehold development of Tropicana City located at the crossroads of the LDP and Sprint highways is progressing rapidly. The Tropicana Mall is expected to be completed by the third quarter of the year. More than 40% of its 440,000 sq ft of nett lettable area has been leased out.
The second component of the integrated development is the RM147 million Tropics Designer Suites, which already has a take-up rate of 75%. The 601 units are sized from 625 to 1,176 sq ft and priced between RM222,000 and RM506,000.
The suites, which sit on top of the shopping podium, are scheduled for completion by the third quarter of 2009. Construction work on the third offering — the 105,000 sq ft Signature Office Tower recently commenced. The developer intends to retain the tower for leasing.
By theSun (by Allison Lee)
“We have yet to decide on the final components of the proposed development, but it will comprise mainly residential properties.
The composition will depend on market studies yet to be carried out,” he explained.
Earlier this week Dijaya Corp announced that its wholly owned subsidiary Nadi Jelita Sdn Bhd had entered into a sale and purchase agreement with Beta Fame Sdn Bhd to acquire four parcels of freehold agricultural land, measuring 93.418 acres in Jenjarom, Kuala Langat, for RM29.5 million.
Tong said the project, which has yet to be named, will be targeted at the upgrader market of the local population in Jenjarom, Banting and its immediate surroundings who are looking for quality products. The site is located within the commercial center of Jenjarom town and along the Klang/ Banting road, which has been seeing rapid development.
The land acquisition for the project, which is slated for completion within six years, is in line with the developer’s direction to increase its landbank for development and to generate long-term sustainable income.
Dijaya Corp is synonymous with the development of its flagship project, the Tropicana Golf & Country Resort and the Damansara Indah Resort Homes.
In the Tropicana Golf & Country Resort, the developer is expecting to launch the first phase of its Tropicana Grande golf-course-fronting condominiums by the third quarter of the year.
Tropicana Grande, one of the final offerings in the resort development in Petaling Jaya, is tagged at an estimated price of RM500 psf.
There will be 298 units with built-ups from 2,208 to 6,138 sq ft.
Tong with a scale model of the integrated development of Tropicana City
Meanwhile, construction on its nine-acre freehold development of Tropicana City located at the crossroads of the LDP and Sprint highways is progressing rapidly. The Tropicana Mall is expected to be completed by the third quarter of the year. More than 40% of its 440,000 sq ft of nett lettable area has been leased out.
The second component of the integrated development is the RM147 million Tropics Designer Suites, which already has a take-up rate of 75%. The 601 units are sized from 625 to 1,176 sq ft and priced between RM222,000 and RM506,000.
The suites, which sit on top of the shopping podium, are scheduled for completion by the third quarter of 2009. Construction work on the third offering — the 105,000 sq ft Signature Office Tower recently commenced. The developer intends to retain the tower for leasing.
By theSun (by Allison Lee)
Select Right Properties For Investment
Every property investor hopes to generate good profit from his real estate investment. Therefore, whether it is for personal use or for investment, selecting the right type of property is important. While there are many views on this subject, here are some basic principles and guidelines that can help investors:
1 Location
In considering investment in new developments, the reputation and success of the developer is important. - File Photo
1 Location
Selecting a good location is critical; it can include an area which has a high demand for rental, an area that is self sustaining in terms of shopping convenience, availability of schools/colleges, proximity to towns and cities, whether it is self-contained, etc. A location that is established and matured has a record of good yields and returns.
2 Accessibility and transportation system
Accessibility and transportation is another key factor for growth of all townships, as it contributes to the development of surrounding areas. Roads, railways and LRT accessibility not only add value to the property but also the convenience of travel.
3 Selling price
When selecting the property, it is advisable to compare the selling price of similar properties in the neighbouring areas. This is to determine whether the property you are planning to invest in is overpriced or underpriced. These records can be obtained from estate agents and this information can guide you to really understand price movements over a period of time. There are many properties that are underpriced and it takes time to search for them.
4 Brand
In considering investment in new developments, the reputation and success of the developer is important. Developers with a good track record deliver properties as promised with good quality finishes and as scheduled.
5 Timing
It is important to note that timing does help when the property market is in an overheated situation. Since the real estate industry has its own economic cycle, we must try to understand in which cycle we are in. However, in any market properties worth investing in, it is a general rule not to invest in overpriced properties at any point in the cycle.
6 The amenities
The surrounding amenities are an added advantage to the residents as they will give much convenience and result in a comfortable lifestyle. The nearby commercial area and facilities provided by the property itself are among the factors to be considered in real estate selection.
7 Restriction and condition
When investing in real estate, we must make sure it is not bound by too many restrictions and purchase conditions and this can be reflected in the title. Otherwise, one might face a lot of difficulties or trouble by the time we want to sell off the real estate. The restrictions include land usage, private caveats and transfer restrictions which will affect the selling price of the property.
8 Other considerations
We should also think about our own financial constraints to avoid excessive debt, the returns on investment, cash flow consideration, etc. In addition, when calculating the returns, we should also consider our ability to pay for the loan instalment. We should never overlook other hidden costs such as legal fees, security charges, service fees, maintenance fees, assessment, quit rent, etc.
In conclusion, property acquisition planning is important before we decide to acquire a property. We should choose properties which are cost effective and have potential for high return on investment. One should consider wisely from the various angles provided above. In all situations visit and inspect the property before you make a purchase decision. In some small degree non-financial factors such as feng shui and geographical direction also affect the value of your investment.
By The Star (by
This article is part of an on-going real estate education programme by the Malaysian Institute of Estate Agents (MIEA), 88-B, Jln SS 21/39, Damansara Utama, 47400 PJ. Tel: 03-77277477 Fax: 03-77293693 E-mail: secretariat@miea.com.my Website: http://www.miea.com. my
Construction sector works to plug brain drain
PETALING JAYA: The Master Builders Association Malaysia (MBAM) is planning nationwide road shows this year on employment opportunities in the construction sector as part of its efforts to address the country's shortage of skilled workers in the sector.
According to MBAM president Patrick Wong, the association plans to visit schools, colleges and universities to give talks on the career opportunities in the sector.
“The construction sector has been facing a severe brain/skill-drain problem for the past year, especially at the consultancy levels and we foresee it to be worse this year. Although it can’t be solved overnight, we need to start addressing it from the education level,” he told theSun at the Real Estate and Housing Developers’ Association open house held recently.
For the road shows, MBAM will be working with the Construction Industry Development Board of Malaysia to recruit jobless graduates to be trained with its 600 members nationwide.
Wong said that local workers have been headhunted to take up offers in Singapore since the start of the two large integrated resort developments there, as well as to Taiwan and the United Arab Emirates.
“There is a construction boom worldwide and local workers are attracted by the higher pay and better benefits.
Malaysian workers are highly in demand as they speak English, are multi-skilled and can handle the jobs on site,” he added.
On the rising costs of construction, Wong said MBAM members faced average increases of 12% last year, and expected costs to rise between 18% and 22% this year.
“The major impact will be felt in the first quarter due to the simultaneous launches of projects in this period including the Iskandar Development Region, Northern Corridor Economic Region, Eastern Corridor and Penang Second Link. With so much demand, the cost of labour, machinery and raw materials are bound to increase,” he added.
In order to cushion the impact, he advised members to be more productive and seek out new methods to do construction work.
“For example, they can use skim coats instead of plaster walls to bring costs down. Alternatively, use the type of machinery that requires lesser manpower,” he said.
On the automatic price mechanism for setting new cement prices scheduled to start in January, Wong said that it has not taken effect and believed the reason to be that the actual cost of the raw material has not increased.
By theSun (by Loo Pik Kwan)
According to MBAM president Patrick Wong, the association plans to visit schools, colleges and universities to give talks on the career opportunities in the sector.
“The construction sector has been facing a severe brain/skill-drain problem for the past year, especially at the consultancy levels and we foresee it to be worse this year. Although it can’t be solved overnight, we need to start addressing it from the education level,” he told theSun at the Real Estate and Housing Developers’ Association open house held recently.
For the road shows, MBAM will be working with the Construction Industry Development Board of Malaysia to recruit jobless graduates to be trained with its 600 members nationwide.
Wong said that local workers have been headhunted to take up offers in Singapore since the start of the two large integrated resort developments there, as well as to Taiwan and the United Arab Emirates.
“There is a construction boom worldwide and local workers are attracted by the higher pay and better benefits.
Malaysian workers are highly in demand as they speak English, are multi-skilled and can handle the jobs on site,” he added.
On the rising costs of construction, Wong said MBAM members faced average increases of 12% last year, and expected costs to rise between 18% and 22% this year.
“The major impact will be felt in the first quarter due to the simultaneous launches of projects in this period including the Iskandar Development Region, Northern Corridor Economic Region, Eastern Corridor and Penang Second Link. With so much demand, the cost of labour, machinery and raw materials are bound to increase,” he added.
In order to cushion the impact, he advised members to be more productive and seek out new methods to do construction work.
“For example, they can use skim coats instead of plaster walls to bring costs down. Alternatively, use the type of machinery that requires lesser manpower,” he said.
On the automatic price mechanism for setting new cement prices scheduled to start in January, Wong said that it has not taken effect and believed the reason to be that the actual cost of the raw material has not increased.
By theSun (by Loo Pik Kwan)
F&N set to launch maiden residential project
PETALING JAYA: The property division of Fraser & Neave Holdings Bhd (F&N) is planning to launch its maiden residential project on commercial land known as Ampang Hilir 233, located on a 1.56-acre tract along Embassy Row in Jalan Ampang, Kuala Lumpur, this year.
Property division general manager Cheah Hong Chong (pix) said, the niche project comprises 434 serviced apartments with built-ups from 430 sq ft to 1,001 sq ft, as well as office suites and retail lots.
“We are targeting the development at local and foreign buyers and investors looking for quality, high-end residential units in a prime location in the heart of KL’s city centre.
“We are currently evaluating the pricing but it will match the market value of around RM700 psf,” Cheah said.
Also the developer of Fraser Business Park in Sungai Besi, it completed and handed over Phase 1 and is now concentrating on completing the second phase known as Zon.e@Fraser Business Park, which was launched in September 2006. To date, 75% of the second phase has been taken up and is targeted for completion in 2009, with a gross development value (GDV) of RM350 million.
Positioned as the region’s first purpose built ICT hub to be equipped with cuttingedge digital technology, the integrated commercial development will feature ICT retail business lots, Malaysia’s first budget e-hotel, serviced apartments and the city campus of a university college.
Cheah said the transformation of F&N’s former factory land into prime commercial office and retail space has not only benefited the group but also provided purchasers with healthy returns within a short timeframe.
“Capital returns for the 5-and 6-storey shop offices in Phase 1 have shot up, with some units being sold at more than 50% over the initial purchase price during its launch in 2004. For instance, a unit originally priced at RM1.8 million is now worth between RM2.8 million and RM3
On the group’s future plans, he said F & N would continue to focus on the ICTcentric theme for
all commercial and residential projects. “Other than Fraser Business Park, other good commercial developments at the group’s existing factory sites can be expected down the road,” he said.
F&N will also explore the possibility of collaboration with reputable institutions and brands to develop value-added products that complement the group’s own projects, he added.
In line with the need to build a stronger brand image for its property division and improve customer service efforts, F&N has built a dedicated property gallery and strengthened its in-house sales and marketing team. “The property division will realise its aspirations of owning its own identity once F&N Properties Sdn Bhd is set up,” Cheah said.
While unlocking the value of its current and future property developments, the soft drinks and dairy products manufacturer’s property division will maintain its current conttribution of 8% to 10% to the group’s overall revenue and earnings, he added.
“We expect the property division to continue contributing sustainable income to the group through projects that feature product innovation coupled with an ICTcentric theme,” he said.
For its financial year ended Sept 30, 2007, F & N recorded a net profit of RM152.9 million on revenue of RM2.9 billion. Its property division recorded an operating profit of RM20.6 million on revenue of RM65 million in the year under review.
By theSun (by Yap Yew Jin)
Property division general manager Cheah Hong Chong (pix) said, the niche project comprises 434 serviced apartments with built-ups from 430 sq ft to 1,001 sq ft, as well as office suites and retail lots.
“We are targeting the development at local and foreign buyers and investors looking for quality, high-end residential units in a prime location in the heart of KL’s city centre.
“We are currently evaluating the pricing but it will match the market value of around RM700 psf,” Cheah said.
Also the developer of Fraser Business Park in Sungai Besi, it completed and handed over Phase 1 and is now concentrating on completing the second phase known as Zon.e@Fraser Business Park, which was launched in September 2006. To date, 75% of the second phase has been taken up and is targeted for completion in 2009, with a gross development value (GDV) of RM350 million.
Positioned as the region’s first purpose built ICT hub to be equipped with cuttingedge digital technology, the integrated commercial development will feature ICT retail business lots, Malaysia’s first budget e-hotel, serviced apartments and the city campus of a university college.
Cheah said the transformation of F&N’s former factory land into prime commercial office and retail space has not only benefited the group but also provided purchasers with healthy returns within a short timeframe.
“Capital returns for the 5-and 6-storey shop offices in Phase 1 have shot up, with some units being sold at more than 50% over the initial purchase price during its launch in 2004. For instance, a unit originally priced at RM1.8 million is now worth between RM2.8 million and RM3
million,” he told theSun.
On the group’s future plans, he said F & N would continue to focus on the ICTcentric theme for
all commercial and residential projects. “Other than Fraser Business Park, other good commercial developments at the group’s existing factory sites can be expected down the road,” he said.
F&N will also explore the possibility of collaboration with reputable institutions and brands to develop value-added products that complement the group’s own projects, he added.
In line with the need to build a stronger brand image for its property division and improve customer service efforts, F&N has built a dedicated property gallery and strengthened its in-house sales and marketing team. “The property division will realise its aspirations of owning its own identity once F&N Properties Sdn Bhd is set up,” Cheah said.
While unlocking the value of its current and future property developments, the soft drinks and dairy products manufacturer’s property division will maintain its current conttribution of 8% to 10% to the group’s overall revenue and earnings, he added.
“We expect the property division to continue contributing sustainable income to the group through projects that feature product innovation coupled with an ICTcentric theme,” he said.
For its financial year ended Sept 30, 2007, F & N recorded a net profit of RM152.9 million on revenue of RM2.9 billion. Its property division recorded an operating profit of RM20.6 million on revenue of RM65 million in the year under review.
By theSun (by Yap Yew Jin)
Sime Darby launches latest Putra Heights offerings
PETALING JAYA: Sime Darby Property recently launched Garnet, its latest offering of double-storey linked homes, in Putra Heights.
The 82 units of Garnet double-storey link homes, sized at 24ft by 75ft, with built-up from 2,160 sq ft to 3,440 sq ft and priced between RM373,888 and RM705,888, will be completed by January 2010. Since its launch, 47 homes, or 57%, have been sold.
Putra Heights, situated adjacent to the neighbouring townships of Subang Jaya, UEP Subang Jaya (USJ), Puchong and Shah Alam, is an integrated township of mixed residential and commercial properties.
“The newly completed Putra Point commercial centre and the completion of a new RM65 million interchange at the Elite Highway (by year-end) will certainly make Putra Heights one of the preferred townships in the Klang Valley,” said Sime Darby Property senior executive vicepresident Datuk Abdul Wahab Maskan.
Located on prime freehold land along Putra Avenue (within Putra Heights), Garnet offers a choice of four layout plans with standard features including three air-conditioning units, 11-foot high ceilings (ground floor), eight-foot-high main entrances, auto-gate systems and concealed drainage.
“Our corner and end-lot units have been enhanced further with six bedrooms, a larger car porch that can accommodate up to three cars, and three-phase wiring,” Abdul Wahab said. He added the openconcept design for the living and dining areas, and the courtyard allows continuity
and better ventilation between indoors and outdoors.
Abdul Wahab said Putra Heights, a 727- hectare development, is a fast-emerging vibrant township.
Previous launches there include the Sapphire, Ruby, Amethyst and Emerald double-storey link homes that have been receiving very encouraging responses from interested homebuyers. Amethyst and Emerald, for example, have take-up rates of 80% and 61% respectively.
Amethyst units, with built-ups of between 2,160 sq ft and 3,440 sq ft were priced from RM373,888 to RM712,888, while Emerald units, with built-up areas between 2,050 sq ft and 3,860 sq ft, were priced from RM349,888 to RM750,888.
The township will comprise approximately 11,500 units of both residential and commercial properties once it is fully completed within the next four years.
Sime Darby Property’s previous developments include the highly successful Subang Jaya and USJ townships.
By theSun (by Rosalynn Poh)
The 82 units of Garnet double-storey link homes, sized at 24ft by 75ft, with built-up from 2,160 sq ft to 3,440 sq ft and priced between RM373,888 and RM705,888, will be completed by January 2010. Since its launch, 47 homes, or 57%, have been sold.
Putra Heights, situated adjacent to the neighbouring townships of Subang Jaya, UEP Subang Jaya (USJ), Puchong and Shah Alam, is an integrated township of mixed residential and commercial properties.
“The newly completed Putra Point commercial centre and the completion of a new RM65 million interchange at the Elite Highway (by year-end) will certainly make Putra Heights one of the preferred townships in the Klang Valley,” said Sime Darby Property senior executive vicepresident Datuk Abdul Wahab Maskan.
Located on prime freehold land along Putra Avenue (within Putra Heights), Garnet offers a choice of four layout plans with standard features including three air-conditioning units, 11-foot high ceilings (ground floor), eight-foot-high main entrances, auto-gate systems and concealed drainage.
“Our corner and end-lot units have been enhanced further with six bedrooms, a larger car porch that can accommodate up to three cars, and three-phase wiring,” Abdul Wahab said. He added the openconcept design for the living and dining areas, and the courtyard allows continuity
and better ventilation between indoors and outdoors.
Abdul Wahab said Putra Heights, a 727- hectare development, is a fast-emerging vibrant township.
Previous launches there include the Sapphire, Ruby, Amethyst and Emerald double-storey link homes that have been receiving very encouraging responses from interested homebuyers. Amethyst and Emerald, for example, have take-up rates of 80% and 61% respectively.
Amethyst units, with built-ups of between 2,160 sq ft and 3,440 sq ft were priced from RM373,888 to RM712,888, while Emerald units, with built-up areas between 2,050 sq ft and 3,860 sq ft, were priced from RM349,888 to RM750,888.
The township will comprise approximately 11,500 units of both residential and commercial properties once it is fully completed within the next four years.
Sime Darby Property’s previous developments include the highly successful Subang Jaya and USJ townships.
By theSun (by Rosalynn Poh)
DRB-HICOM gets offer for mall
DRB-HICOM Bhd, the country's largest integrated automotive concern, has received a S$150 million (about RM344 million) offer for a shopping mall it owns in Singapore's Little India, people familiar with the matter said yesterday.
The offer is some 50 per cent more than what it received in 2006. However, it is unlikely to sway the management team to sell the Singapore asset anytime soon.
"There won't be a fire sale of assets. Instead, there are plans to make additional investment into the asset before a transparent sale can be considered," said a person representing a shareholder of the company. He spoke on condition of anonymity.
It is believed that DRB-HICOM intends to pump in between RM10 million and RM20 million to refurbish and rebrand the six-storey Tekka Mall, which sits on 6,332 sq m of commercial land in between Serangoon and Sungei Road.
DRB-HICOM bought the land in Singapore a year before the Asian financial crisis and only started developing the land in 2002. It is estimated that its cost of investment, including the land, is about S$188 million (RM431 million).
Tekka Mall (the automotive group's first property venture abroad), alongside Raba Nyrt (Hungary's only publicly-traded vehicle parts maker), is among assets deemed as non-core. They have been earmarked for sale to raise about RM500 million in fresh capital.
DRB-HICOM, under the stewardship of managing director Datuk Mohd Khamil Jamil, has been doing a juggling act of selling assets and buying new ones. This is aimed at reducing debts and adding more urgency to the group's focus.
Although a mainstay in the automotive sector, DRB-HICOM has sizeable interest in property development, defence and services.
It also has interest in the plantation business via its ownership of the fully-matured Connemara Estate, which sits on 6.26 million sq m of land in Ulu Langat, Selangor.
The estate land could be converted for property development. But for now, DRB-HICOM is content to reap dividends from firm palm oil prices.
Mohd Khamil declined to speak on specifics, but told Business Times that the management team's efforts thus far had been helped by the free hand given by major stakeholders of the company.
The major shareholders are tycoon Tan Sri Syed Mokhtar Al-Bukhary (15.4 per cent), the Employees Provident Fund (17.48 per cent) and Khazanah Nasional Bhd, the government-owned investment arm (10.33 per cent).
Since his appointment to the job in February 2006, Mohd Khamil's team has shaved off almost RM505 million of the group's debts by getting rid of non-core businesses and improving operational and financial efficiency to strengthen the group's balance sheet.
To date, DRB-HICOM has outlined plans on the sale of its stake in EON Capital Bhd and Uni.Asia Capital Sdn Bhd, which will raise about RM2 billion cash.
As at March 31 2007, DRB-HICOM had debts of about RM2.2 billion. Interest on the debts for the year under review stood at RM143.69 million, or about 94 per cent of its net profit of RM156.53 million.
Pride of Kota Kinabalu’s waterfront
An integrated mixed development is to take pride of place in Sabah’s capital, right smack on the waterfront in Kota Kinabalu city centre, along Jalan Tun Fuad Stephens.
Described as the city’s “most exciting tourist attraction development to date”, Kota Kinabalu City Waterfront (KKCW) will take the form of a 2km-long boardwalk rising above the sea on stilts and built with eco-friendly materials.
According to developer Waterfront Urban Development Sdn Bhd (WUD), the project is set to be “a thriving waterfront pedestrian walkway that will seamlessly connect a variety of retail, lifestyle, residential and hotel establishments”.
To be completed by 2010, the RM500 million KKCW will incorporate environmentally friendly features such as high-tech LED lighting, energy conserving air-conditioning systems and solar powered pedestrian lighting along the boardwalk.
“The project was conceptualised after detailed studies of several thriving world-class waterfront attractions,” WUD managing director Reymee Mohamed Hussein said.
These sites included Darling Harbour in Sydney, Australia; Cape Town Waterfront in South Africa; Victoria Harbour in Hong Kong; Canary Wharf in London, England; and Clark Quay Riverside in Singapore.
Launched by Prime Minister Datuk Seri Abdullah Ahmad Badawi in Kota Kinabalu at the close of last month when he also unveiled the Sabah Development Corridor (SDC), KKCW is being undertaken in collaboration with the Kota Kinabalu City Hall.
WUD, Kuwait Finance House (Malaysia) Bhd and a consortium of Malaysian and Middle Eastern investors will fund the project.
“KKCW is in line with Kota Kinabalu’s overall urbanisation and development master plan … it will increase the role of coastal cities as catalysts for modernisation and development,” Reymee said.
“We designed the development to unlock the potential of the city’s waterfront. It will feature one of the longest city waterfront boardwalks in Asia and is poised to become a tourist attraction as well as an integral part of Sabah’s hospitality industry.”
The retail element will be formed by “elegant stores and chic boutiques” in an open-air layout, as well as a luxury fashion mall catering to upscale consumers and tourists.
Aside from giving the city a new lifestyle heartbeat, Reymee said KKCW will also spur economic growth for Kota Kinabalu and provide employment and new business opportunities for local residents and businesses.
WUD is a subsidiary of Orienthold Waterfront Development Sdn Bhd, a private company established in 2004 with the principal objective of promoting the waterfront development concept.
By New Straits Times (by G. Umakanthan)
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