Danga City Mall to open in Johor in July

ONE of the biggest shopping complexes in Johor Baru - Danga City Mall - will open in July with Metrojaya as its anchor tenant.

The tenancy agreement will be signed on Friday between the complex owners, Danga City Mall Sdn Bhd (DCM) and Metrojaya Bhd’s wholly-owned subsidiary, MJ Department Stores Sdn Bhd.

DCM director Gary Lee Seaton said the mall is scheduled to open in July as soon as Metrojaya completes its renovations and fittings.

News of the opening has spurred a great deal of interest in Johor Baru with strong enquiries from Malaysian and Singapore-based retailers and traders for take-up of the 500-odd shop lots in the complex.

By Bernama


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SP Setia eyes RM520m profit

INVEST MALAYSIA 2008 CONFERENCE

SP Setia Bhd, Malaysia's most valuable property company, aims to double its net profit in four years, helped by new product offerings and overseas expansion.

The company expects overseas businesses to contribute equally to its net profit and revenue by 2012, said group managing director and chief executive officer Tan Sri Liew Kee Sin.

SP Setia, which has a market value of some RM5 billion, made a net profit of RM260 million for the 12 months ended October 31 last year.
Its revenue was flat at RM1.15 billion.

"We are looking at launching new projects in nearby neighbouring countries, which we can effectively manage.

"There is huge potential in Southeast Asia. Besides maintaining a steady growth in Malaysia, we will launch projects in new markets," Liew told reporters at Invest Malaysia 2008 in Kuala Lumpur yesterday.

The firm has 1,937.12ha in Penang, Johor, the Klang Valley and Kota Kinabalu, Sabah, with 16 ongoing projects worth RM30 billion.

This year, it will launch four projects in Malaysia and one in Vietnam, worth RM5 billion collectively.

Earmarked for next year is a mixed development project at a 8.1ha site opposite the Mid Valley Megamall development, in a joint venture with City Hall.

The project will comprise mainly commercial components such as shopping, retail and offices, and also apartments and condominiums.

In Sabah, SP Setia plans to launch several tourism-based developments, after unveiling plans for its first venture in the state, a RM1 billion mixed development project in Tanjung Aru - dubbed Aeropod.

Aeropod is a major bet on the economy of Sabah, which is set to benefit from an 18-year development plan, estimated to attract investments of more than RM100 billion.

Liew said the group is keen to build eco-friendly developments in Sabah, which is in line with its aim to diversify its geographical concentration to other high-growth states and international markets.

By New Straits Times (by Sharen Kaur)

Naim Cendera sets revenue target

NAIM Cendera Holdings Bhd is targeting an annual compounded growth rate of 30 per cent in revenue for the next three years.

The construction and property group expects to achieve this through a combination of increased sales in the property division and by replenishing its construction order book by between RM0.5 billion and RM1 billion yearly.

The group made a net profit of RM82.7 million against RM652 million in revenue for the financial year ended December 31 2007.

Managing director Datuk Hasmi Hasnan said the group plans to treble its property sales from RM230 million currently, in the next three to five years.

Naim Cendera's net outstanding order book stands at RM2.6 billion, which will last the group between two and three years.

By New Straits Times

SunCity projects unchanged sales next year

SUNWAY City Bhd, a Malaysian developer and hotelier, said it’s “concerned” about slowing global economic growth as it forecast unchanged sales next year.

Revenue in the year ending June 2008 will be RM1.4 billion (US$439 million) and little changed in the following 12 months, Ngian Siew Siong, Sunway’s managing director of property development, said in an interview in Kuala Lumpur yesterday.

The company may list a real estate investment trust of its properties in Malaysia or Singapore in the second half of the year, chief financial officer Koong Wai Seng told reporters.

Sunway will also start a RM1.5 billion property project in India in April, a venture with Opus Pte, Koong said.

By Bloomberg

Penang mulls subway system instead of monorail

PENANG is mulling the idea of building a subway system as a long-term solution for its traffic and flooding problem, instead of the elevated monorail project mooted by the federal government.

"The final say on this matter, however, rests with the federal government, since the monorail is a project which is to be financed by the federal authorities," Penang Chief Minister Lim Guan Eng said.

He was speaking to reporters after chairing his second state executive council meeting in George Town yesterday.

Lim said he realises that an underground transportation system will cost at least three times more than the monorail system.

The chief minister, who received a courtesy call on Tuesday from Malaysian Resources Corp Bhd (MRCB) officials, said he was briefed on the monorail project.

"The parties involved in the monorail project said that they are unable to secure financing for a subway system," Lim said.

MRCB, together with Penang Port Sdn Bhd and Scomi Engineering Bhd's subsidiary, Scomi Rail Bhd, have jointly bid for a monorail project on the island.

In January, Syarikat Prasarana Negara (SPNB) issued a letter of intent to the consortium for the monorail job. The monorail is said to comprise two lines measuring 25km.

The first route proposed is between the Penang International Airport and George Town, while the second line will be from George Town to Tanjung Bungah.

By New Straits Times (by Marina Emmanuel)

Sri KDU Smart School coming up in Nusajaya, Johor

Teo and Wan Abdullah after the signing ceremony

PETALING JAYA: Janahasil Sdn Bhd, a wholly-owned subsidiary of Paramount Corporation Bhd (Paramount) has signed a sale and purchase agreement with UEM Land Sdn Bhd (UEM Land) yesterday for the acquisition of 10 acres of land in Nusajaya, Johor.

Sold for a total consideration of RM13.068 million, the land is located within UEM Land’s latest development known as East Ledang. Paramount, with a track record in the educational services
sector under the KDU brand, will construct and operate the proposed Sekolah Sri KDU Smart School on the 10-acre plot.

“Paramount will be the first private education operator in Nusajaya. The setting up of a private school of this stature is in line with our plans to develop an integrated community with world class infrastructure in Nusajaya. I am confident that the school, when completed and ready for enrolment in 2011, will be welcomed by young families looking for quality yet affordable education for their children,” said Wan Abdullah Wan Ibrahim, managing director of UEM Land.

Datuk Teo Chiang Quan, group managing director and group CEO of Paramount, said another RM40 million would be allocated for the construction of the school’s first phase.

Paramount also has an option to acquire another 15 acres of land from UEM Land for future expansion. According to Teo, the group has three years to exercise the option, which it is considering. “We are committed to doing something there; we are now doing a market study to find out why should we do another school there,” he added.

According to Teo, the company is in the midst of planning the blueprint, which could take about three months after which relevant submissions will be done. “We aim to begin piling works seven months from now, perhaps in October. It will take one and half years to build the school,” he said.

The school, which is targeted to open its doors on January 1, 2011, will cater to the current and future population of Nusajaya as well as the Johor population. It will have a slightly smaller capacity compared to its Sekolah Sri KDU in Kota Damansara, which has a full capacity of more than 2,500 students.

Other established names under the KDU banner include KDU College in Damansara Utama, Sekolah Sri KDU in Kota Damansara, KDU Management Development Centre (KMDC) in Kuala Lumpur and Petaling Jaya, as well as KDU International Language Training School (KILTS) in Chongqing, China.

According to Wan Abdullah, the school will be fronting the Coastal Highway connecting the Johor city to Nusajaya. The highway project is being spearheaded by South Johor Investment Corporation and is funded by the federal government to improve connectivity.

East Ledang, a 365-acre development launched about four weeks ago, has had its first phase 50% taken up and expects to be 100% sold in a matter of three to four months, said Wan Abdullah. He reveals that its second phase, comprising terraced homes, semidees and bungalows will be launched in 4Q2008.

UEM Land is the master developer of Nusajaya, a 24,000-acre regional city located in South Johor touted to be the largest fully-integrated urban development in South-East Asia. The group is currently undergoing a restructuring exercise which will be completed in September, said Wan Abdullah. “There have been no setbacks,” he said.

By theSun (by Yeong Ee-Wah)

UEM Land sees good response

Wan Abdullah Wan Ibrahim (right) and Datuk Teo Chiang Quan at the press conference

PETALING JAYA: UEM Land Sdn Bhd expects the first phase of its 365-acre East Ledang high-end residential property development in south Johor to be sold out in four months.

Managing director Wan Abdullah Wan Ibrahim said 50% of the first phase had been sold since the project was launched four weeks ago.

“We had very good response from Singaporean and Johorean buyers.

“Judging from the response, we expect to launch the second phase in the fourth quarter,” he told a press conference after Paramount Corp Bhd’s wholly owned subsidiary, Janahasil Sdn Bhd, inked a sale and purchase agreement with UEM Land for 10 acres in East Ledang.

Under the agreement, Paramount will purchase the land from UEM Land for RM13.07mil and construct and operate a private school called Sri KDU Smart School.

The first phase of the East Ledang development on 40 acres comprises 140 terrace and semi-detached units with a total gross development value (GDV) of RM97mil. The project’s total GDV is about RM1.3bil.

On the progress of parent company UEM World Bhd’s restructuring exercise, Wan Abdullah said the scheme was progressing “smoothly”.

“We hope to call for an EGM for the UEM group in July and complete the whole exercise by September,” he said.

Paramount group managing director and chief executive officer Datuk Teo Chiang Quan said the agreement gave the company the option to acquire another 15 acres within the next three years.

By The Star

IJM: Construction firms' earnings will hold up

TAN: Opposition victories in five states won't hamper IJM's earnings

IJM Corp, Malaysia's second biggest builder, said the nation's construction companies will be able to maintain profits for at least two years, dismissing concern that the government's polls losses will slow spending on public works.

Opposition victories in five states in the March 8 elections won't hamper IJM's earnings, managing director Datuk Krishnan Tan told reporters yesterday.

"It's not peaking," Tan said. "Awards may peak but jobs take two to three years to finish so one has to be clear that in terms of revenue spins, they'll be on for two to three years."

Shares of Malaysian builders including IJM have plunged on fears Prime Minister Datuk Seri Abdullah Ahmad Badawi's spending plan for roads, bridges and ports may be delayed after the ruling coalition lost its two-third parliamentary majority. The Kuala Lumpur Construction Index has dropped 9.4 per cent since March 8.

"Most of the big construction companies already have substantial order books that will take them to two years of earnings," Tan said. "If there's a delay, it will be a delay in order-book enhancement. It shouldn't affect the earnings in immediate terms."

Many of the country's large construction contracts have yet to be awarded, "so I don't see how it can peak," he said, referring to new orders.

By Bloomberg

More office space for PJ’s Section 13

The site for the future PJCC

PETALING JAYA: The Brunsfield Group of Companies is targeting multinational companies who are on the lookout for a Petaling Jaya business address to take up space at its upcoming corporate office-cum-showroom building that will be coming up along Section 13’s Jalan Kemajuan.

Its executive director of property development Chan Chee Keong told theSun its central location would ensure the success of its project, known as Petaling Jaya Commercial Complex (PJCC).

“The commercial site is also near popular eateries like Restaurant Unique Seafood. Nearby existing and upcoming commercial developments point to the potential of this area as well,” said Chan.

Having obtained its building plans and development order approvals recently, construction of the eight-storey project with a gross floor area of 378,172 sq ft and a net letable area of 289,997 sq ft on a freehold 3.48-acre site will start in June. Completion is in 36 months and the developer plans to lease the building enbloc.

“We have started the pre-leasing exercise and have received a few enquiries.

Such a building will be ideal for businesses that also need warehousing or storage facilities to accompany the office. Behind the main block of PJCC, there is space for such facilities,” he added. The Sime Darby Group and Brunsfield jointly own the site. PJCC will house showroom facilities
on the ground and first levels while the remaining upper floors will be for office use. According to Chan, rental rates are between RM4 and RM4.50 psf.

Meanwhile, a consultant familiar with the area believes that the project will do well because of its location. Kim Realty principal Vincent Ng also told theSun that the whole Section 13 area has been zoned for commercial use.

“Nowadays Jalan Kemajuan is very much considered a main thoroughfare and with its close proximity to the Federal and Sprint highways, it will be suitable for businesses that are looking for an office away from the city centre, which is getting too crowded,” said Ng.

Ng also noted that bungalows along Jalan Kemajuan have been transformed into business premises over the past few years. “Businesses here front the main road and enjoy good exposure. Demand for land here is also on the rise and I believe people are willing to pay more than RM200 psf, depending on the size and location of the site,” he added.

As land prices become more expensive in the city centre, Ng also feels that businesses are moving away from the city centre to suburban areas. Citing Damansara Heights as an example, he said rental rates for office space there is in the region of RM5.50 psf.

“Rental rates in the Section 13 area are easily going between RM3.50 and RM4 psf, such as those in Jaya 33, which is fully occupied, and 3 2 Square’s tower block,” said Ng, adding that PJCC could command a rental rate of about RM4 psf if it were to be a nicely done up modern building.

With the appreciating land cost at Section 13, Ng also felt that it would be a waste to offer industrial properties.

By theSun (by Loo Pik Kwan)

Films and TV shows prompt Britons to buy slice of paradise

LONDON: With its deserted shores and pristine waters, year-round sunshine and lush vegetation, the island idyll was as much a star of the film The Beach as its Hollywood hero, Leonardo diCaprio.

So it is perhaps not surprising that some film-goers have sought to emulate the fictional young hedonists in the 2000 thriller by seeking their own utopia in Thailand. And according to a new survey by a foreign exchange company, Foreign Currency Direct, they are among the one fifth of Britons who have bought a foreign property after being influenced by a film or television series.

With the help of the polling company YouGov, the firm asked 2,000 people what prompted their investment in bricks and mortar abroad. After analysing their replies, it picked out the 10 films and television series that have tempted buyers to start a new life, or buy a second home, abroad.
Among the favourites are the James Bond films, which have frequently featured the azure waters and lively nightlife of the Caribbean, and The Lord of the Rings, which is said to have encouraged fans to seek a new life in its mountainous backdrop, New Zealand.

The cobbled streets, fishing boats and shimmering sea of The Talented Mr Ripley have strengthened the appeal of rural Italy, despite harbouring a celluloid psychopath played by Matt Damon. Captain Corelli’s Mandolin has, apparently, prompted an influx of romantic home buyers to the Ionian island of Cephalonia.

An interest in moving to Argentina may have been aroused by the 2004 hit The Motorcycle Diaries, which depicted the journey of a young Ernesto “Che” Guevera and his friend Alberto Granado from Buenos Aires to Venezuela.

Television series credited with stirring people into action include A Year in Provence, based on Peter Mayle’s diary of restoring a French farmhouse. About 13% of buyers in the South of France aged over 45 said they had been “seduced” by the series.

Rural Ireland has become popular partly as a result of Ballykissangel, the BBC drama set in a village in County Kerry, but filmed in County Wicklow. And the purchase of property in the Scottish highlands has been spurred by the panoramas of The Monarch of the Glen.

Further afield, the soap operas Neighbours and Home and Away, set in Melbourne and Sydney, have tempted Brits to Australia with images of detached houses and unfeasibly large kitchens. The cheaper cost of living was the biggest reason cited by owners for buying abroad, followed by fear of crime at home, the weather and investment or taxation.

By The Independent

Parkson to build RM214mil mall

PETALING JAYA: Parkson Holdings Bhd has proposed a RM214mil retail mall in Setapak, Kuala Lumpur with a minimum gross retail floor area of 690,000 sq ft.

In a statement to Bursa Malaysia, it said there would also be a basement floor of 328,000 sq ft – encompassing 900 parking bays and 6,700 sq ft of retail shops. It said the mall was expected to be completed in the second half of 2009.

By The Star

Gurney project in Penang may be reviewed

Guan Eng: State govt wants views from everyone


Raising concerns: Artist impression of Gurney Paragon, a mixed integrated development comprising a shopping mall, high-end condominiums and a heritage building.

PENANG: The state government will review the billion-ringgit Gurney Paragon project if there are “justifiable grounds”.

Chief Minister Lim Guan Eng said the state government would get views from all quarters and welcomes any objection.

“We will revisit the projects approved by the previous administration and if necessary, review them if these projects are adversely affecting people’s lives.

“The concerns expressed to us by NGOs have been taken into account and we want certain procedures to be complied with, as should be the way the government works,” he said after a dialogue session with members of the Free Trade Zone Penang Companies’ Association yesterday.

Lim was responding to calls by the Penang Heritage Trust (PHT) and Bar Council Legal Aid Centre to review and hold an open hearing on the project.

PHT chairman Dr Choong Sim Poey had told a press conference the state government should reassess the planning permission procedures practised by the previous Penang Municipal Council.

Gurney Paragon is a mixed integrated development by Hunza Properties (Penang) Sdn Bhd comprising a shopping mall, two blocks of high-end condominiums and a heritage building spread over 4ha of freehold land.

Located along Gurney Drive fronting the sea, the land was formerly occupied by the Uplands International School. The company bought it in 2004 for RM97mil.

Gurney Paragon has a total gross development value of close to RM1bil.

Piling work for the development has begun and the project is scheduled to be completed by 2010.

Lim said the state welcomed any view or suggestion on projects that had been approved by the previous state government.

By The Star

IJM: Builders to maintain profits

IJM Corp, Malaysia’s second-biggest builder, said the nation’s construction companies will be able to maintain profits for at least two years, dismissing concern that the government’s poll losses will slow spending on public works.

Opposition victories in five states won’t hamper IJM’s earnings, managing director Krishnan Tan told reporters today at an investor conference in Kuala Lumpur organised by the Malaysian stock exchange.

“It’s not peaking,” Tan said. “Awards may peak but jobs take two to three years to finish so one has to be clear that in terms of revenue spins, they’ll be on for two to three years.”

Shares of Malaysian builders including IJM have plunged on fears Prime Minister Datuk Seri Abdullah Ahmad Badawi’s spending plan for roads, bridges and ports may be delayed after the ruling coalition lost its two-third parliamentary majority. The Kuala Lumpur Construction Index has dropped 9.4 per cent since March 8.

“Most of the big construction companies already have substantial order books that will take them to two years of earnings,” Tan said. “If there’s a delay, it will be a delay in order-book enhancement. It shouldn’t affect the earnings in immediate terms.”

Many of the country’s large construction contracts have yet to be awarded, “so I don’t see how it can peak,” he said, referring to new orders.

By Bloomberg

Aseana Prop sees RM2b from Mont' Kiara projects

Almost Sold Out: Tiffani by i-Zen project is among a few high-end residential and commercial developments at Mont' Kiara -- Website picture

ASEANA Properties Ltd, listed on London Stock Exchange and 20 per cent-owned by Ireka Corp Bhd, expects to rake in nearly RM2 billion in gross development value (GDV) from two high-end projects in Mont' Kiara.

Aseana also plans to launch its first overseas project in Vietnam by year-end, subsidiary Ireka Development Management Sdn Bhd chief operating officer Lim Ech Chan said.

The Vietnam venture will be a mixed development of serviced apartment, office and retail lots on a partnership with a local party, Lim said.

Aseana should generate RM1.3 billion from the recently-launched Seni Mont' Kiara residential resort and RM380 million from Tiffani by i-Zen condominium project.

Seni Mont' Kiara and Tiffani by i-Zen are among a few high-end residential and commercial developments under Aseana at Mont' Kiara.

"The average price of condominiums at Tiffani by i-Zen is RM630 per sq ft (psf). More than 90 per cent of the total 399 units available have been sold in the past one year," Lim said.

Sixty per cent of the project has been completed and the handover of the residentials is expected in early 2009.

Lim spoke to reporters after Aseana signed an agreement appointing South Korea's LG Electronics as air conditioners supplier for the Tiffani by i-Zen yesterday.

"The Seni Mont' Kiara will have an average price of RM750 psf," he added.

The Seni Mont' Kiara project, Lim said, will comprise four blocks with a total 600 units of condominium.

Two phases are being undertaken, with completion in three years. Phase One will have 300 units. The second phase of another 300 units is planned for launch in June or July.

Aseana expects to launch an office development by December this year.

"It is a two blocks of 28-storey and 16-storey office development with an average price of RM850 psf," Lim said.

Meanwhile, LG Electronics Sdn Bhd managing director T.Y. Ko said it will install 2,200 units of LG ArtCool air-conditioners at all 399 Tiffani by i-Zen units.

The contract is valued at US$4 million (RM12.76 million), he added.

This is the second air-conditioner contract awarded by Aseana to LG Electronics. In 2006, the latter got to supply air-conditioners for all the 404 units of the Kiaraville condominium development.

By New Straits Times (by Zuraimi Abdullah)

Faber’s new projects in KL and Sabah

Adnan (right) with Rimbunan Melati senior general manager Khalid Abdul Majid in front of a 3-storey terraced house show unit in Laman Rimbunan

KUALA LUMPUR: Faber Development Holdings Sdn Bhd (FDH), a member of Faber Group Bhd, is set to launch two new projects in Taman Desa here and an exclusive development in Kota Kinabalu, Sabah this year. Within its flagship development in Taman Desa, FDH will launch a joint-venture (JV) project with Dewan Bandaraya Kuala Lumpur (DBKL) comprising 40 units of semi-dees and six bungalows with an average built-up of 4,000 sq ft and 7,000 sq ft respectively.

The proposed average selling price for the semidees is RM1.4 million, and RM2.85 million for the bungalows. The target launch for the JV is the 2Q2008, Faber group managing director Adnan Mohammad told theSun in an interview recently.

“There is also a lakeside condominium in Taman Desa that we plan to launch by the 3Q2008,” he added. The lakeside development would consist of 176 units of luxury condominiums, with an average builtup of 1,279 sq ft. The proposed average selling price is RM400,000.

According to the developer, the two developments to be launched in Taman Desa are adjacent to each other.

Adnan disclosed in Kota Kinabalu, FHD will be launching a RM31 million high-end development within the exclusive Taman Hilltop. To be called Hilltop Perdana, it comprises 32 semi-dees and two linked bungalows with average built-up area of 4,000 sq ft. With a selling price of between RM869,060 to over RM1 milllion, the launch is scheduled for the 2Q2008.

“Taman Hilltop is an established and exclusive area in Kota Kinabalu. We anticipate very good response there,” said Adnan, adding that within the same vicinity, all high-end developments have been fully taken up.

FDH, through its subsidiary Rimbunan Melati Sdn Bhd, is currently developing Laman Rimbunan in Kepong, Kuala Lumpur. The mixed development consists of shop offices, 3-storey terraced houses, and medium and low-cost apartments. It is a JV between FDH and Cekap Corporation Bhd, where FDH holds a 55% stake.

Spanning over a 100-acre leasehold tract fronting Jalan Kepong, Laman Rimbunan has a gross development value of approximately RM618 million, consisting of six phases. To date, 60% has been developed, comprising 50-units of 3-storey shop offices and 243 units of 3-storey terraced houses. On-going developments include 360 units of lowcost apartments, eight units of 2-storey shop offices, and 148 units of 3-storey Mawar houses.

“Response has been very encouraging. Our 3-storey shop offices, 3-storey houses and low-cost apartments have been fully sold. The second phase of our 3-storey Mawar terraced houses have seen a takeup of 95%,” said Adnan.

The Mawar houses have built-up of 3,033 sq ft and a lot size of 22 ft by 75 ft. Launched in November 2006, with pricing at RM471,800 onwards, it is expected to be ready by November this year.

Launched earlier this month was its third phase, Matahari, comprising 193 units of 3-storey terraced houses with a lot size of 22ft by 75ft and built-ups from 3,025 sq ft for intermediate units and 3,689 sq ft for corner units. Intermediate units are going from RM547,800 while end lots are priced from RM843,800.

Adnan said 50% was sold within a week of the launch. The GDV of Matahari is over RM119 million.

According to the developer, a Matahari unit features a 700 sq ft junior master bedroom on the third floor. Laman Rimbunan also boasts the use of high quality materials. The Construction Industry Development Board (CIDB) Malaysia, graded the construction quality of the project's first phase (terraced houses) as above average, or 70%.

“The property market in Kepong is vibrant," said Adnan, citing an example of some shop offices that were bought for RM1 million in August 2005 and were recently sold (subsale) for RM1.5 million.

"For our houses, the buyers are mainly owner-occupiers from Petaling Jaya, Kepong and Taman Desa,” he added. FHD is in the midst of securing more lands within Klang Valley, including one in Puchong. The developer will also be looking at collaborations with its sister company, UEM Land, and will continue to either acquire land or possible JVs with landowners.

By theSun (by Rosalynn Poh)

Asia property demand predicted to continue amidst global slowdown

SYDNEY: Demand for commercial and residential property in Asia will continue in the medium term despite a global property slowdown in 2008, predicts the Asian Public Real Estate Association (APREA).

Peter Mitchell, the CEO of APREA, told an audience of institutional investors at a recent seminar in Sydney that emerging Asian real estate investment trusts (REITs) made it comparatively easy and costeffective to access these markets.

“In certain Asian markets such as Hong Kong and Singapore, REITs are beginning to mature as an asset class,” said Mitchell. “As an investment instrument, REITs generally offer the longer-term investor steady dividend yields, a high level of management transparency and the potential for appreciation of the underlying assets.”

By The Edge Singapore

Abbey Woods focuses on KLCC

VETERAN property marketing guru and developer, Datuk Wong Choon Kee, who recently left Sunway City Bhd after more than seven years helming the company, is still raring to shape the property landscape of Kuala Lumpur and other major cities around the world.

“Property is my life – I live and breathe property,” enthused Wong during a recent interview with StarBiz. A strong believer of real estate in the KL City Centre (KLCC) area, Wong's outfit, Abbey Woods Sdn Bhd is teaming up with a few strong financial partners to develop high-end residential and commercial projects in the well sought after address.

“We believe that any property built in the KLCC area will be marketable and tradable. Properties built here have to be high-end branded products with quality finishes and iconic designed facade.” he said.

Datuk Wong Choon Kee

On his plans for Abbey Woods, Wong said: “It is important to always create a vision and then ignite your organization to make this vision a reality. I love exerting energy competitive spirit to get my team passionate about what they are doing that they cannot wait to execute the project.”

“I hope I am able to share my experiences and the little expertise that I have with the younger generation of developers and builders in Malaysia. To move ahead, one would have to be in-tune with the latest technology and information.” he added.

He pointed out that branding was the business buzz in property development today.

In the robust city of Vancouver, Abbey Woods will be teaming up with foreign fund partners to develop quality and high-end property projects.

The first project will be a 30-storey condominium tower comprising of 180 condominiums, ranging in sizes from 850 to 2,200 sq ft.

Construction is expected to commence within six months, once planning approvals are obtained. Selling prices are not yet confirmed, but expected to be in the region of RM4,000 per sq ft.

“The strong and sophisticated property market in Vancouver has attracted substantial investors' interest from all parts of the world.

High-end residential properties are going for between RM6,000 and RM8,000 per sq ft. The commercial market also holds much potential,” Wong said.

He also has plans for some quality residential projects in Singapore to establish a strong brand in the regional market.

How does he keep up with the industry? Wong said: “I love attending property launches, both locally and internationally. It is through these launches that I learn about the competitions we are facing and the ever changing trends – what is in and what is not.

“I must say that my years with the corporate sector were indeed fulfilling and inspiring as I got to work and learn from great visionaries. Everyday was a learning experience – gaining more skills and knowledge on the know-how's of the business. Their management and leadership skills had empowered and sparked others, leading the pack to achieve goals and vision.”

Wong co-founded property consultancy firm CH Williams, Talhar & Wong in 1973 and remained the firm's managing director until 1989.

His exposure in Canada was between 1989 and 1996 when he was the president and chief executive officer of Abbey Woods Development Ltd, a property company listed on the Toronto and Vancouver stock exchanges.

In late 1996, he was back in Malaysia to join Genting Bhd as executive vice-president before moving on in 2000 to become the senior managing director of Sunway City Bhd.

As part of the SunCity team, Wong listed three projects that he took pride in – Sunway South Quay, Kiara Hills and Palazzio “where the epitome of fine living makes both architectural aesthetics second to none amidst a lushly landscaped setting.

“Many savvy homebuyers are seeking for innovative residences set in natural surroundings. It has been said that a high quality life is often associated with a natural milieu in the simplest form – light, views and free flow of fresh air.

“Through our projects, we had gone beyond the norm to build wholesome innovative homes; beyond the expectations of homebuyers.

“Besides an exclusive address, the iconic development sits on an extensive natural, tropical landscaping, and uses natural materials laced with modern tropical designs,” he said.

With Wong's dynamic capacity for new property ideas and work, one can expect more property deals to come in the near future.

By The Star (by Angie Ng)

Going for community building concept

INSTEAD of merely building properties, developers should embrace the concept of building communities by envisioning the process from a “community builder’s” viewpoint.

According to Abbey Woods Sdn Bhd chairman and managing director Datuk Wong Choon Kee, this is a more holistic approach to building as the builder evaluates how the development could impact people’s lives as he constructs.

“Every developer must optimise construction standards by offering quality facilities, better security measures and higher standard of living, because they are part of the process of building a nation.

“Sustainable property development must be practised as we move forward, as we should remember that building is always about the future, and the future is something we borrow from our children.

“Developers must start looking seriously into eco-friendly designs and buyers and investors and buyers can support this by making educated purchases,” Wong said.

He reminded developers that they have to do their best to provide property buyers with the best value they can possibly enjoy.

“The new generation of homebuyers is extremely savvy and hands-on on real estate matters; demanding good craftsmanship, quality designs, prime locations and the best value for every ringgit spent.

“As a property developer, I would like to see more innovations in the property projects developed in the country in terms of architecture and design, and emphasis given to quality,” Wong said.

He observed that the country would continue to face strong competition “as every other country is racing to pull in foreign real estate investors.”

“We have to raise the country's rating in various aspects, including quality of life index and international-standard property offerings. We have to capitalize on our advantages, including having one of the lowest property prices in the region, a comparable cost of living and transparent land and property ownership laws.”

On the market outlook, Wong said the local property market would continue to offer attractive durable dynamics, especially in the residential property sector, which would continue to dominate the volume of transactions in the market.

Malaysia is experiencing major development and economic growth, giving rise to an upturn in its tourist, residential and commercial property markets.

“Many international real estate investors are considering Malaysia as a highly lucrative option for three main reasons – well-priced properties, strong economy for sustainable growth and yields over the medium to long term.

“Property development in Malaysia has been encouraged by political, economic and geographical stability and it is one of the safest countries to live in.” Wong said.

Its modern lifestyles with exposure to western culture, great healthcare and infrastructure facilities, as well as a technology savvy society, make the country an attractive investment destination.

Wong said the Government’s My Second Home Programme and recent relaxations for foreign investment had made it easier for foreigners to purchase property and get financing locally.

“Malaysia also has a young age profile where 60% of the population is below 30 and the size of the average household is still largely at 4.3 persons per home. As the population matures, it should drive increased household formation, which will spur property demand.

The feel-good strategies, including the exemption of the real property gains tax, the lifting of Foreign Investment Committee (FIC) approval and removal of the limit of the number of property loans allowed for non-residents, will also help stimulate the property sector,” he added.

By The Star

Property on investors’ radar

GIVEN the volatility in the equity and financial markets since late last year, investors, both retail and institutional, are looking for safer places to park their money. Inflationary pressure also plays a role in where the money goes.

Property is an asset class that, in recent times, has entered the radar of investors seeking capital gains, yields or as a hedge against inflation.

For example, in tandem with economic growth, the property markets of Ireland and Spain were booming until recently while in metropolises such as Hong Kong, London, Mumbai, New York, Shanghai, Singapore and Sydney, commercial and residential property prices have risen due to their roles as global or regional financial hubs.

However, this asset class is complex, as street and market sentiment count for a lot. For residential properties, investment is based heavily on location while for commercial properties, economic growth and business sentiment are important factors. Supply and demand also influence the price, capital gains and yields.

Property prices in certain markets might have levelled off or fallen on account of the mortgage crisis in the US and the subsequent turmoil that has ensued but if ever there was a time to purchase property it might be now in those markets that have seen falling prices such as in the US.

The US Federal Reserve's move to cut the federal funds rate - the key interest rate that influences consumer credit, has also fuelled a property boom in Asia where interest rates have been kept low in tandem with the Fed's.

Due to this comparatively low-interest rate regime across most of East and Southeast Asia, there is a good spread or gap between returns and financing of properties.

Australia on the other hand is facing higher interest rates but due to the lack of supply in the residential component of the property market, there might be a property boom although not till two years down the road when pressure for housing builds up, according to a February report by an economist with an Australian bank.

The equity markets in Australia have also not been spared the turmoil that has hit other markets, he said, adding that this has provided added impetus, outside of the high interest rate regime, for investing in property.

He said most investors do not chase yield but capital gains when looking at property. A property boom may be around the corner due to the lack of housing supply in cities such as Melbourne, Perth and Sydney in recent times, he said.

Hall Chadwick Asia Sdn Bhd chairman Kumar Tharmalingam said the general rule of thumb in managing portfolio of investments is 20% in cash, 30% in property and 50% in equities and bonds.

“In the current scenario, the 30% investment in property is very stable because rental is determined over entire term period and not based on the market's current volatility,” he told StarBiz.

Kumar said owing to the recent volatility in the equity markets, it might not be a good idea to take positions, “but there may be opportunities to take profit.”

He said the consequences of the financial crisis in the US would be higher borrowing costs, as banks turned cautious on borrowers. “We're going to be affected by the sub-prime crisis by association due to tightening of credit worldwide,” Kumar added.

He said capital gains on property are also seen as a hedge against inflation. “Its a good time to own property if you've debt-free real estate or existing debt on easier terms that is also fully-led,” Kumar said.

Regroup Associates Sdn Bhd executive director Paul Khong said investors would only look at sizable investment grade-type commercial properties when looking for yields or capital gains. “Luxury residential properties led the way in transactions until a year ago when commercial properties started to see transactions in the RM1,000 psf range. Before that it was between RM500 psf and RM600 psf,” he said.

Since then we've seen values of commercial properties soaring, Khong said, adding that until the advent of real estate investment trusts and their emphasis on yields, most investors did not acquire properties to look for yields.

“Now, we're looking at an industry average net yield of between 6% and 7% within the Klang Valley for choice office properties while it is 8% for industrial properties,” he said.

By The Star -StarBiz

Branding Alam Jaya

Barisan Elite's RM200 million Alam Jaya Commercial Centre in Bandar Puncak Alam, Shah Alam, hopes to draw the interest of Klang Valley folks

IT is not only the ultra high-end projects by big players that create an impression, but sometimes niche projects by lesser-known developers manage to catch the eye. One such project is Barisan Elite Sdn Bhd’s RM200 million Alam Jaya Commercial Centre (AJCC) situated in Bandar Puncak Alam, Shah Alam, Selangor.

The 46-acre leasehold mixed development comprises five products — AJ Wallstreet, AJ Boulevard, AJ Gallery, AJ Serene and the AJ Hypermarket, something that its general manager Ong Yen Lee (pix) says was planned from the start when the land was purchased five years ago.



"We wanted to offer a product unique to this area as the surrounding developments are mostly residential townships,” says the accountant turned entrepreneur. “Although the surrounding townships have their own commercial parcels, they usually cater for the neighbourhood with mostly clinics, hairdressers, launderettes and coffee shops. At AJCC, we want to attract not only the surrounding business, but draw in the crowds from KL, Subang Jaya and Petaling Jaya,” adds Ong.

Barisan Elite is a collaboration between three professionals in the various fields of architecture, property development and finance. The group’s first project in 1993 was Taman Usahaniaga in Bukit Mertajam, Penang. That project with 121 units of 4- storey shopoffices and 484 units of apartments was developed under Matrix Development & Construction Sdn Bhd.

The group subsequently undertook the development of other mixed industrial, commercial and residential projects of Taman Industri Teguh in Penang (1997), Taman Bangi Jaya in Semenyih, Selangor (1998), Taman Harmoni Indah in Balakong, Selangor (1999) and Taman Impian Indah also in Balakong (2002).

Its most recent project is the RM250 million Taman Industri Alam Jaya also in Bandar Puncak
Alam. This 300-acre project is adjacent to AJCC and was completed in 2004 with 152 industrial lots, 367 units of 2-storey terraced homes, 284 units of shophouses and 380 apartment units.

Ong said the group never had difficulty in delivering projects, even during the 1997 economic crisis and often relied on the partners’ strong business networks to market their commercial products.

AJCC
The first phase, AJ Wallstreet has yet to be officially launched, but a takeup of over 85% has been achieved since Barisan Elite started marketing units mid-last year. The modern façade AJ Wallstreet comprises 115 units of 2-storey shopoffices with spacious built-ups from 2,797 to 7,338 sq ft. The shopoffices are priced from RM318,000.

“We have not advertised much and are surprised by the good response as this proves that word-of mouth is an effective marketing tool. Some 15% are repeat buyers from the previous project, Taman Industri Alam Jaya, which has been fully sold. Also, our prices are competitive.



We know of similar shop offices in this area that are being marketed from RM400,000,” said Ong. AJ Boulevard (pix), the second product to be offered, was launched in January this year and to date 25% of the 262 units of 2-storey “streetmall” shops have been sold.

These shops have built-ups from 1,441 to 2,929 sq ft and are priced from RM249,000 to RM620,000. “The streetmall concept is not a new one as it has been popular for many years in China.

It provides patrons a comfortable shopping environment with a covered pedestrian walkway and
boulevard, making promotions and activities possible regardless of the weather," said Ong. She added that streetmalls provide an alternative for tenants who cannot afford to set up businesses in the luxury shopping malls with high rental as streetmalls have lower operating costs.

“To ensure full occupancy and vibrant business atmosphere, we will be managing the tenancy on
behalf of the buyer for a period and guaranteeing a 7% return of investment per annum for two to five years,” said Ong.

AJCC is strategically located at the fringes of Sungai Buloh, Klang and Shah Alam and is accessible via the Guthrie Corridor Expressway, Shah Alam-Batu Arang Highway, Jalan Meru and Jalan Kuala Selangor.

“In the near future, this area will be easily connected to Petaling Jaya, Mutiara Damansara. Damansara Perdana and Kuala Lumpur using the proposed New North Klang Valley Expressway. The fact that our project is served by many highways gives buyers confidence as one of the key criteria to look into when making an investment is road infrastructure,” said Ong.

AJCC is also near established townships such as Bandar Puncak Alam, Shah Alam II, Taman Puncak Alam, Taman Industri Alam Jaya, Desa Coalfields and Bandar Saujana Utama. There are
also many upcoming projects in this area such as Sunway Alam Suria, Alam Budiman, Cahaya SPK and Puncak Perdana.

“As AJCC is a new project, I have been asked whether there will be too many shops, but I do not feel that this is an issue as investors are forward thinking. The project is surrounded by matured townships and by 2010, the area is expecting a 700,000 household population. There will be added demand for properties when the nearby Universiti Teknologi Mara begins its first intake of students in 2009,” she said.

Future
To be launched in July are 800 units of middle-range serviced apartments in AJ Serene and five units of 2-storey standalone showrooms in AJ Gallery. Units in AJ Serene are priced from RM90,000 with average sizes at 850 sq ft.

“The apartments are targeted at factory supervisors and executives in the industrial area, as well as UiTM lecturers and students. It would be a convenient living choice as eateries and shopping areas are just a walk away,” said Ong.

Meanwhile, the developer has positioned AJ Gallery as an ideal showroom for businesses to display their products. “Food and beverage outlets or even interior design companies can opt to set up offices here as there is high visibility, individual compounds and private car parking. The unit prices are from RM1.6 million with built-ups of 7,000 sq ft.”

As for AJCC’s final component, the AJ Hypermarket, Barisan Elite is in the midst of finalising the
agreements to have a hypermarket chain set up business by 2009. The entire development is expected to be completed by end- 2009 and the developer is planning for a mega opening carnival to create a publicity buzz.

In the pipeline for Barisan Elite is the development of a 300-acre land adjacent to AJCC. Project development for the commercial and industrial lots are set to commence by end-2008.

“We will be continuing with the Alam Jaya brand name as we aspire to have the whole area known as Alam Jaya. For the future project, there will be more industrial products than commercial because there is strong demand for medium-size factories in this area and we are going to capitalise on that. We still have a waiting list of buyers wanting to buy units from our previous development,” said Ong.

By theSun (by Allison Lee)