IJM Corp still doing well despite challenging times

SUBANG JAYA: IJM Corp Bhd is still doing well despite the challenging times in the construction industry, said chief executive officer and managing director Datuk Krishnan Tan.

Datuk Krishnan Tan (right) and IJM Corp deputy CEO & deputy managing director Teh Kean Ming at the AGM.

Continuous focus would be placed on securing overseas jobs to contribute further to the company’s order book, he told reporters after its AGM and EGM yesterday,

The company announced yesterday a net profit of RM129.1mil for its first quarter to June 30, against a loss of RM728.9mil in the same period a year earlier.

Revenue improved to RM1.22bil from RM1.11bil previously, while earnings per share stood at 10.65 sen compared with a loss per share of 89.34 sen.

On the West Coast Expressway project undertaken in a joint venture with Kumpulan Europlus Bhd, Tan said he expected some delays as there was a double-digit increase in the cost of building materials.

IJM has a 25% stake in Europlus.

Tan said that in the Middle East, the company was bidding for two jobs in Bahrain, one in Dubai and two in Abu Dhabi worth more than RM1bil.

Its current order book is estimated at about RM5bil, of which 50% were contracts from India and the Middle East.

On the proposed listing of IJM (India) Infrastructure Ltd (IJMII) on the National Stock Exchange of India. Tan said the company had deferred it but ultimately IJMII would be listed.

“The environment in India, which contributes 30% of our order book, has changed substantially over the last six months to a year due to rising costs.

“Interest rate has also gone up to as high as 13% in India, thus affecting both the cost of doing business and demand from prospective property buyers,” Tan said.

IJM’s expressway project, which starts from Chilkaluripet to Vijayawada in Andhra Pradesh, India, requires a capital expenditure of RM900mil.

Total construction cost is RM550mil and the concession spans 15 years.

“Originally the two-lane road was to be expanded to four lanes.

“Now the Indian authorities want six lanes,” said Tan.

By The Star

Sunway to develop Toa Payoh land

SUNWAY Holdings Bhd plans to jointly develop a 2.75ha land in Toa Payoh, Singapore, into a mixed project with estimated gross development value of S$680 million (RM1.64 billion).

Teaming up with Hoi Hup Realty Pte Ltd Group, Sunway expects the project to be launched by June 2009 and should take four years to complete.

By New Straits Times

IJM Land plans to launch 28 projects

SUBANG JAYA: IJM Land Bhd plans to launch 28 mixed development projects with a combined gross development value (GDV) of RM600mil, says managing director Datuk Soam Heng Choon.

Datuk Soam Hong Choon

“The projects will be located in Penang, Klang Valley, Malacca, Johor, Negri Sembilan and Sandakan,” he said after the company AGM and EGM yesterday.

He said the company was currently developing “The Light” waterfront project in Penang and a township called Bandar Utama in Sandakan.

According to Soam, the company had taken over Sebana Cove, an on-going resort-cum-mixed development project on the southern east tip of Johor.

This would be redeveloped to attract Singaporeans, he said.

The company paid RM120mil for Sebana Cove with infrastructure completed. Current prices in the area range from RM600,000 for a semi-detached house to RM400,000 for a town house.

“We are targeting the middle to upper-middle segment,”Soam said.

On another note, IJM Land would be a geographically diversified Malaysian developer once it completed its rationalisation exercise by Sept 5, Soam said.

IJM Land, previously known as RB Land Holding Bhd, used to have projects only in the Klang Valley and Seremban.

“We would continue to showcase our property in the Klang Valley, Seremban, Penang, Johor, Malacca and Sandakan.”

On IJM Land’s overseas venture, Soam said the company was investing in Changchun, the automotive city of China, for a commercial service suites-cum-residential development with a retail component.

It holds a 50% stake in the project, which will have a GDV of RM500mil when completed in four years.

On measures taken to counter the rising building material cost, Soam said its in-house construction arm was one way of keeping cost down.

By The Star

AMDB plans to buy 4 property firms from parent

AMDB Bhd plans to buy four property companies from parent AmcorpGroup Bhd as part of a reorganisation strategy.

Under the deal, AMDB will own a 100 per cent stake in Amcorp Prima Realty Sdn Bhd (APRB), a 60 per cent stake in HDC-Amcorp JV Sdn Bhd, a 100 per cent interest in Regal Genius Sdn Bhd and a 100 per cent stake in Distrepark Sdn Bhd.

AMDB will pay RM159.72 million in cash and new shares for its interest in APRB, Regal Genius and Distrepark to settle inter-company loans owed by the three companies to AmcorpGroup.

AMDB will also pay RM20.99 million for a 60 per cent stake in HDC-Amcorp.
APRB owns the Kayangan Heights development in Selangor, while HDC-Amcorp is in a joint venture to develop the Sibu Jaya township in Sarawak.

In a statement released in Kuala Lumpur yesterday, AMDB said it plans to reorganise itself as a focused property, engineering and infrastructure player.

The reorganisation also entails AMDB writing off RM356.55 million in accumulated losses, as well as the sale of certain non-core assets.

The group plans to hive off businesses which are not meaningfully valued by the market, such as its restaurant operations (Restoran Seri Melayu), travel and tour agents Harpers Travel and a minority stake in an advertising agency, J.Walter Thompson, to its holding company AmcorpGroup.
AmcorpGroup will pay RM22.1 million for them.

As a first step, AMDB will write off its entire accumulated losses via a capital reduction exercise, followed by a capital consolidation exercise. Secondly, it will sell the non-core assets and buy the four property companies.

Finally, AmcorpGroup proposes to make an offer for sale of up to 118 million shares to other shareholders of AMDB at an offer price of 50 sen per share.

Meanwhile, AMDB registered a net loss of RM1.4 million in its first-quarter financial period to June 30 2008, which was due to RM3.1 million in losses from discontinued operations.

By New Straits Times

Factor in changing lifestyles, builders told

KUALA LUMPUR: Developers should plan and design their projects to take cognizance of the changing lifestyles of Malaysians.

Bukit Kiara Properties Sdn Bhd chairman Datuk Alan Tong said in view of strong inflationary pressure, developers should strategise to come up with projects that allowed Malaysians to be less dependent on fuel, and live and work in an efficient manner.

Datuk Alan Tong

“Ideally, where we live and work should not be too far from each other,” he told StarBiz.

Based on what he observed in developed countries, Tong said real estate development strategies for Malaysia should focus on meeting the changing lifestyles of her people.

Citing the United States as an example, he said that while that country was well developed, the residential communities were very spread out.

In the outskirts of the cities and semi-urban areas, commuting could prove difficult without one’s own means of transport, he said.

“Their lifestyle revolves around motor vehicles,” he said.

In Malaysia, with the current high fuel prices, people should cut down on their expenses and one way to do so was to live and work in the same locality, he said.

High density projects located close to the city could be the way forward, he said.

On the current sentiment in the property market, he said: “While the industry is not so dependent on oil, the increase in oil prices has also impacted raw material prices.

“We know of contractors who have signed contracts are in a bind as they are caught by the sudden increase in prices.”

As for developers, he said those who had not launched many projects, were holding back. “Many developers are diversifying overseas instead,” he said.

On property market prices, Tong said: “Compared with other countries in the region, we are still very cheap. Property, especially in the upmarket segment, would still be appealing to some foreigners,” he said.

On abandoned projects, he said this problem was not as rampant as it used to be when cooperative societies built houses.

Tong is among the key speakers at the 19th National Real Estate Convention held today and tomorrow at One World Hotel, Bandar Utama.

FIABCI Malaysia, together with The Institution of Surveyors, Malaysia and the Association of Valuers & Property Consultants in Private Practice Malaysia, is organising the convention, which would see industry leaders gather to share their winning strategies in four sessions.

Among the topics to be discussed are real estate strategies moving forward, development strategies, design and construction strategies and investment strategies.

Notable speakers include Singapore’s DLF Trust Management Pte Ltd chief executive officer Wong Ah Long, Indonesia’s PT Ciputra Development president commissioner Ciputra, and the Philippines’ Architect Felino Palafox, founder Jun Palafox Jr.

A total 400 participants are expected at the convention.

By The Star (by Eileen Hee)

IOI Corp buys Menara Citibank

PETALING JAYA: IOI Corp Bhd has succeeded in its bid to buy Menara Citibank for an undisclosed sum, the company said.

It told Bursa Malaysia yesterday that it was acquiring the building from Inverfin Sdn Bhd. However, it declined to state the price for the building. A local media report had said the price tag was RM800mil.

“The company shall make the requisite announcement on the detailed terms of the purchase in accordance with the listing requirements as soon as the definitive agreement has been executed,” it said.

Trading in IOI Corp shares was voluntarily suspended at 4.22pm yesterday and will resume at 9am today.

The share price fell 15 sen to RM5 before the suspension.

By The Star

Mega cities of opportunity

US$200 billion project in Yemen and Djibouti holds lucrative prospects for Malaysian contractors.


INTERNATIONAL ATTRACTION: An artist’s impression of the Al Noor Cities project.

The massive US$200 billion (RM668 billion) Al Noor Cities project, comprising a city each in Yemen and Djibouti, is taking shape and presents various investment opportunities for experienced contractors from Malaysia.

Al Noor Holdings Investment chief executive officer Mohammed Ahmed Al Ahmed said over the next six years, the project proposes an investment of US$31 billion (RM103.54 billion) in Yemen and US$20 billion (RM66.80 billion) in Djibouti, some by Al Noor, some by private investors.

In 15 years' time, according to plan, US$200 billion would have been invested in the project - US$105 billion (RM350.70 billion) in Yemen, US$70 billion (RM233.80 billion) in Djibouti and US$25 billion (RM83.5 billion) on the world's longest suspension bridge linking the two, he added.

Mohammed Ahmed and project executives and advisers expect "great appetite" for the build-own-operate contracts that will make up the bulk of developments within the Al Noor masterplan.

The project, the vision of Saudi-Yemeni construction magnate Sheikh Tarek Mohammed bin Laden, has attracted interest from a host of international companies. US giants Honeywell, Avaya and AIG Investments are already among its partners.

"It is a new city and it is happening," Mohammed Ahmed said at the launch of Al Noor Djibouti at Djibouti Kempinski Palace recently.

Malaysian contractors like Eversendai Corp, MMC, Gamuda and WCT Engineering that have vast experience in West Asia could stand as possible front-runners to bid for lucrative contracts in the project.

Mega projects undertaken by Malaysian companies in West Asian countries include the New Doha International Airport in Qatar worth US$543 million (RM1.81 billion), mixed development in the Al-Reem Island Project (Zone C) in Abu Dhabi (US$378 million; RM1.26 billion), Abu Dhabi City Centre (US$429 million; RM1.43 billion), Jizan Economic City in Saudi Arabia (US$2.9 billion; RM9.69 billion) and the Shohiba Independent Water & Power Project (US$2.6 billion; RM8.68 billion).

"Africa is the centre of the world with a population of almost one billion, while the Middle East North African region has a population of 400 million. We have all the ingredients to make this project a reality," Mohammed Ahmed said.

Al Noor Cities' master plan calls for one 1,500 sq km city in the southwestern tip of Yemen and a similar 1,000 sq km city in Djibouti. The cities will be linked by a 28.5km road and rail bridges.

The bridge will open up trade routes between Yemen, the Gulf countries and Africa. It will have a six-lane highway and four light rail lines, water and oil pipelines.

Al Noor Cities will also feature free trade zones, research and development facilities, technology parks and financial districts.

Agreements are in place with governments of both countries to start financing discussions with institutional and private investors, corporates and governments.

"The idea is to finance the project in progressive phases and implement it step by step," said Ross Connelly, managing director of Akkadian Private Ventures, a Washington-based project financing firm hired as an adviser.

There will be clear delegation of authority between the governments and administrations of the two cities, said Reem Alaloui, vice president of US-based AECOM International Development which is drawing up the free zone frameworks.

Dean Kershaw of management services firm L3, the project manager, said talks on the framework agreements will begin "within weeks" and should be completed before the end of the year.

By New Straits Times (by Zuraimi Abdullah)

Mayland builds its strength on choice locations

MALAYSIA Land Properties Bhd (Mayland) is confident it can hold its own against the increasing number of developers venturing into the high-end market.

"There are many players in this segment now, but we are unique because of the landbank that we have in choice locations," Mayland executive director Yeo Chung Sing told Business Times.



In recent years, Mayland has launched a number of high-end condominium developments along Jalan Kuching in Kuala Lumpur, a stone's throw from the city centre.

The Regalia, launched last year, is located behind The Mall.

Its latest development, Royal Regent, is off Jalan Kuching as well and near its Putramas development.

"I believe our pricing, from RM330 per sq ft, makes the Royal Regent very competitive considering that we are just 10 minutes away from property which is selling at RM2,000 per sq ft," Yeo said.

The ideal location has enabled the group to sell 30 per cent of the 471 units on offer even before the development was launched last Thursday.

Royal Regent's gross development value is RM300 million.

"Our buyers have always looked to us to give them developments that not only cater for their needs but are also sound investment decisions," Yeo said.

The Royal Regent's five-storey clubhouse and three condominium blocks hold the promise of being a one-of-a-kind development.

"We have spent some RM10 million on the landscaping and clubhouse alone to ensure that buyers get a premium-value product."

There will also be 16 duplex penthouses in the development.

Yeo said the group is moving ahead with its more than RM1.2 billion worth of launches this year despite the increasing prices of building materials and the somewhat dampened economic outlook.

Mayland has revised the pricing for several of its projects to take into account the almost 30 per cent increase in cost of construction materials, he added.

By New Straits Times (by Presenna Nambiar)

Faber may replicate Taman Desa success story

FABER Group Bhd may replicate its multi-billion-ringgit Taman Desa development if it finds a good location.

"We are not discounting it. It will be a challenge, but we are ready," managing director Adnan Mohammad told Business Times.


ADNAN: Will look at possibilities

"We will look at vicinity and locality since people like the Kuala Lumpur address.

"There's still a lot of land available in Segambut and the surrounding areas. I'm not saying that's where we will go, but we will look at all possibilities," he said.

Faber started developing the 100ha Taman Desa at Jalan Klang Lama in the mid-1970s.

About 90 per cent of Taman Desa, which will take another four years to complete, comprises residential properties. The rest are commercial units.

Faber still has 1.32ha in Taman Danau Desa, part of Taman Desa, ready to be developed. It aims to launch 38 three-storey link-villas, priced from RM1.6 million each, late next year.

Faber, in a venture with Kuala Lumpur City Hall, will also develop 2.28ha in Taman Danau Desa. It will build 40 semi-detached homes, priced from RM1.9 million each, and six bungalows, priced from RM2.5 million a unit, this year.

On another development, Adnan said that Faber will not proceed with a plan in the Sabah Growth Corridor as it wants to focus on two new housing projects in Kota Kinabalu.

This month, Faber plans to launch 32 three-storey semi-detached houses and two bungalows in Taman Hilltop Perdana.

Also in the pipeline is Lucky Heights, a RM110 million condominium project comprising more than 300 units.

Property development makes up about 35 per cent of Faber's revenue, with the rest contributed by its hospital support services business.

By New Straits Times (by Sharen Kaur)

MAHB seeks developers, investors for land around KLIA

MALAYSIA Airports Holdings Bhd (MAHB) will issue a request for proposal (RFP) next month to developers and investors interested in developing land around the KL International Airport (KLIA) in Sepang.

The airport operator has a 30-year lease of 9,690ha at KLIA starting from 1998. Of this total, 6,400ha are for non-aeronautical activities and the rest for aeronautical activities and facilities such as ramp, apron and runway.

MAHB general manager of land development, Muhd Najib Mohd Rawi, said the company is opening 1,092ha of the total non-aeronautical land, currently planted with oil palm, for development over the next 10 to 15 years.

"Our aim is to increase our non-aviation revenues and passenger numbers at KLIA
through creation of activities. In the long term, we want to make KLIA an airport city," he told Business Times in an interview.

MAHB last year commissioned a land suitability study, the results of which showed that the area is suitable for high value and time-sensitive manufacturing facilities, logistics centre and facilities, meetings, incentives, conventions and exhibitions (MICE), destination retail or shopping, tourism and recreational activities.

"A master plan has been developed, outlining development options, and submitted to the Sepang Municipal Council. We expect it to be approved in two months," said Muhd Najib.

"In the meantime, we will continue to generate awareness of the project among developers and investors both locally and abroad," he added.

MAHB is looking to form a joint-venture partnership to develop, build and operate the land or lease the land to others rather than developing it alone.

"We will self-develop some of the development components for long-term recurring rental income," said Muhd Najib.

"We won't invite just anybody. The developers and investors must offer premium development properties in order to maintain the KLIA brand of modern and high technology facilities. This must be carried out throughout the whole development," he added.

Under the master plan dubbed "KLIA Aeropolis", the majority 395.37ha or 36.2 per cent of the 1,092ha land are zoned for commercial use, and 230.4ha or 21.1 per cent for parks and green.

The master plan also features a 128ha allocation for two 18-hole golf courses, 121.07ha for agro-tourism development, and 10.06ha for a stadium.

Muhd Najib said because of the vast development, the RFPs will initially cover several components of the commercial zone such as the expo and convention centre, specialised retail outlets and purpose-built offices.

"We will also invite developers and investors to submit a RFP to develop and operate a 40ha theme park, a logistics centre and golf courses at the airport land," he added.

The company is planning to have a theme park that will rival those in Genting Highlands and Singapore's Sentosa Island.

"The advantages our location has are its proximity to the airport, the abundance of land and the presence of a low-cost terminal," said Muhd Najib.

To attract developers and investors, MAHB is in the midst of drawing up plans to develop a transport centre similar to the KL Sentral station, to connect people from the commercial zone to the airport terminal.

"For this area to be successful, it must be well connected. As such, we are proposing a tram or train line to connect the commercial centre to the airport.

"We are studying what is best. We have allocated some parcels of land for this transport centre," said Muhd Najib.

On the cost of development, Muhd Najib said it will mainly be on infrastructure.

"We will develop the land in phases. For instance, to get the ball rolling, we have allocated a budget in the coming year to commence initial infrastructure development in the commercial zone, covering 20ha," he said, but declined to reveal any figures.

By New Straits Times (by Kang Siew Li)

Setia Haruman to stretching its boundaries

Setia Haruman is considering a listing, either locally or overseas, in three to five years and venturing beyond Cyberjaya.


GROWING CONCERN:Lao says Setia Haruman intends to keep the business flourishing even after Cyberjaya is developed.

SETIA Haruman Sdn Bhd, master developer of the country's first information and communications technology (ICT) hub Cyberjaya, may plan an initial public offering (IPO) in three to five years to raise funds.

It may consider a local IPO or list on a foreign exchange, Setia Haruman chief operating officer Lao Chok Keang said.

He said Setia Haruman was considering venturing beyond Cyberjaya to stretch its boundaries.

"We are currently a single-project entity with only Cyberjaya in our hands. We want to run it as a growing concern so that the business can flourish even after Cyberjaya is developed," Lao said.

Setia Haruman, 75 per cent held by Emkay Group and 25 per cent by UEM Group, has the rights to sell land parcels as well as plan, design and develop the infrastructure at Cyberjaya from 1997 until the project is developed by 2019.

In an interview with Business Times in Cyberjaya, Lao said that Setia Haruman may buy land on the outskirts of Cyberjaya and in other high-impact areas in the country to build up the company.

It may also venture to Vietnam, Cambodia and eastern European countries looking at similar developments like Cyberjaya.

"Cyberjaya is a planned city and there're only a few in the world. We have to create a character to sell the idea," Lao said.

He declined to elaborate on plans or say if the company was in talks with any parties.

"Our people are well equipped to handle projects overseas. We have expertise in housing, infrastructure development and building construction that requires specific ICT needs."

In the financial years 2006 and 2007, Setia Haruman achieved more than RM500 million sales, with 10 per cent profit margin.

Lao said there will be an improvement this year as the company has been selling more land in Cyberjaya to developers eyeing high-impact projects.

Setia Haruman has formulated a five-year plan, ending 2010, to sell land parcels for housing, research institutions, hospital and colleges.

"While it is difficult to attract people to come here, we are saying that the cost is lower to operate in Cyberjaya. We are already seeing a number of big names establishing a base here," Lao said.

Setia Haruman is promoting the digital city with other stakeholders - Multimedia Development Corp (MDeC), Sepang City Council and Cyberview Sdn Bhd - to ensure its sustainability.

"The driver for Cyberjaya is the government's investment through MDeC in bringing information technology companies here," Lao added.

By New Straits Times (by Sharen Kaur)

Plenitude Q4 profit jumps on strong property sales

PLENITUDE Bhd increased its net profit by 15 per cent to RM24.5 million in the fourth quarter compared with the same period last year, as it sold more properties.

For the current year ending June 2009, the group is fairly optimistic it will record satisfactory results as it aims to complete ongoing projects on time.

"Plenitude's good performances and growth over the years are testament to our dedication and commitment in providing high quality products and services to our customers," it said in a statement yesterday.

For the three months to June 30 2008, Plenitude's revenue jumped 43 per cent to RM129.6 million from RM90.8 million before.

Revenue was driven by impressive sales of properties in Taman Desa Tebrau in Johor, Taman Putra Prima in Selangor, Bandar Perdana and Lot 88 in Kedah, The Residences of Changkat Kiara and Changkat View Condominium in Sri Hartamas, Kuala Lumpur.

In the same period, earnings per share also increased to 18.21 sen from 15.84 sen.

For the 12-month period, the company achieved a net profit of RM78.71 million, a 39 per cent jump from 2007.

Revenue improved by 46 per cent to RM347.84 million.

"The response to our launches in the year under review have been very good and we will work hard to ensure that our future launches will receive equal, if not better, responses," said its executive chairman Chua Elsie.


CHUA: The response to our launches in the year under review have been good.

Apart from the profit contributed from property development projects, Plenitude's hotel in Penang , the Tanjung Bungah Beach Hotel, also contributed 0.3 per cent to the group's net profit.

By New Straits Times

Tanjong to build holiday homes in Germany

TANJONG plc has signed an agreement yesterday to develop about 2,000 holiday homes at its Tropical Islands resort in Germany.

Under the agreement, Eske Group A/S will finance development of the vacation home project while Novasol A/S will have the exclusive marketing rights.

Tropical Islands is a holiday resort, located within the world's largest freestanding dome in Germany, developed by Tropical Island Holding GmbH Group, a subsidiary of Tanjong.

The development of 500ha of land will be carried out over three phases.

The first stage comprises construction of 375 units over 30ha which is expected to be ready for occupation in 2010.

Tanjong is not expected to assume nor commit to any financial obligation in respect of the construction and development of the vacation homes.

Tanjong's chairman Datuk Robert Cheim said the involvement of the Eske Group and Novasol will surely contribute to the successful development of Tropical Islands.

"The availability of resort accommodation facilities will help Tropical Islands attract a greater number of visitors from the fast-growing European vacation market, and should expand its current public profile which compromises largely day-trippers. This will place the resort in a much better position to generate greater revenue in the longer term," he said.

By New Straits Times

Hektar REIT posts double-digit Q2 profit growth

HEKTAR REIT, a retail mall property trust with more than RM700 million worth of properties including the Subang Parade shopping complex in Selangor, saw its net profit and revenue grow double-digit in the second quarter of this year.

This was helped by high occupancy rates and positive rental reversions, Hektar Asset Management Sdn Bhd chief executive officer Datuk Jaafar Abdul Hamid said.

"Hektar REIT's net profit grew 10.9 per cent year-on-year to RM9.4 million in the second quarter ended June 30 this year," Jaafar said in an email.

Revenue edged up 15.6 per cent to RM20.9 million, against RM18.06 million in the same period last year.

"Our second quarter results performed according to our expectations. Our shopping centres continue to record high occupancies and rental reversions remain positive.

"Over one million Malaysians live within 15 minutes' drive time of our shopping centres," Jaafar said.

Total occupancy of the shopping centres, he said, improved 97.4 per cent with Subang Parade reaching full occupancy.

Rental reversions remained positive, with 17 new or renewed tenancies recording an average increase of 11 per cent over previous rental rates.

A second quarter dividend of 2.4 sen per unit was declared.

Based on the closing price of RM1.25 on August 12, this represents an annualised yield of 7.7 per cent.

Hektar REIT, listed on Bursa Malaysia's main board in December 2006, aims to distribute 90 per cent of the actual net income for 2008.

By New Straits Times (by Zuraimi Abdullah)

Malbex 2008 to feature cost-effective building systems

COMPANIES are finding smarter ways to construct buildings and the upcoming Malaysian International Building Exposition (Malbex 2008) will feature them.

Two of these home-grown companies are Innovative Precast Builders Sdn Bhd (IPB) and Soils Dynamics (M) Sdn Bhd.

IPB makes an environment-friendly industrial building system (IBS), a patented wall system that will be showcased to local and foreign industry players at the trade show.

IPB director Loo Lee Kam said the wall system allows any building to be completed faster, thus saving on labour cost.

"The cost-saving is about 10 per cent and the price is about the same or cheaper than the conventional product because we save on the mould. The product is also 30 per cent lighter than the conventional one because it doesn't require mortar and plastering, or even cranes," he told Business Times in an interview in Petaling Jaya recently.

Developed locally, the IPB wall system is an engineered concrete block system for structural and non-structural wall application. The concrete block sizes and weight are designed for manual handling.

Chew said the product is flexible as it can be used in the construction of any building, house extension or retaining wall.

Soils Dynamics will be promoting its Bi-Directional Static Load Test system at Malbex 2008.

Soils Dynamics operations manager Yii Toh Leong said the method could help save up to 30 per cent of costs.

Developed locally, the system, which has been introduced in the market since 1990, is widely adopted in the US, Europe and Asia.

Malbex 2008 will be held from August 26 to 29 at the Kuala Lumpur Convention Centre.

By New Straits Times (by Hamisah Hamid)

Dream Living in Kiaraville

Property developer Lai Siew Wah, group managing director of Ireka Corp, is so happy with his Kiaraville condominium development in Mont’ Kiara that he has retained a few units for himself.

In fact, Lai’s children as well as other directors of the joint-venture development have all bought units, mainly as investments. However, Lai and one of the joint-venture directors, who is also chief executive officer of a public-listed company, have furnished and moved into their units.

Lai has a penthouse in one of the high-rise towers but because his wife didn’t fancy walking up and down the huge duplex unit, he has opted to stay in one of two adjoining units in a low-rise block. The other unit is meant for visiting friends and relatives.

Kiaraville is known for its two landmark bronze sculptures worth RM2mil sited at the entrance plaza. The two rotund figures of musicians were created by New York-based Malaysian artist Eng Tay.

Sited on 2.73 hectares (6.74 acres) of land, Kiaraville comprises Tower A with 33 storeys, Tower B with 28 storeys and Tower C with 18 storeys while the two remaining residential blocks are relatively low-rise with 10 and 13 storeys, respectively. The first few units were handed over in February this year. There are a total of 404 units.

Kiaraville is developed by Binaderas Sdn Bhd – owned by Lai and his family members – in collaboration with CapitaLand Financial Ltd and OCBC Bank.

The launch price in March 2005 was RM430 per square foot. To date, all the units have been sold. However, units recently transacted in the secondary market cost between RM550 and RM700 per square foot. The typical units range from 1,593sq ft to 3,935sq ft. Maintenance fee is 25 sen per square foot inclusive of sinking fund contribution. Lai’s own two adjoining units are on Level 1 and have great views of the swimming pools and the landscaped plaza. One of his units, featured on these pages, spans 3,954 sq ft.

As a relatively high-end condo development, imported marble is used as the flooring material in the foyer as well as the living and dining rooms. Bedrooms have “pre-engineered timber” flooring while the wet and dry kitchens come with homogenous tiles. The bathroom in the main bedroom and the powder room have granite floors while the other bathrooms have homogeneous tiles.

While the main construction features were left intact, Lai wanted a grander ambience for his own units. Thus, he spent “substantial resources” on timber panelling to build an apartment with a “stately feel”.

Privacy is assured as there are only two units on each floor of the residential block that Lai has chosen. There is also direct access from the private lift lobby of the condo units to the car park in the basement.

Other than the timber panels, nothing much else needed to be done to the units. Standard built-in features include cabinets in the dry and wet kitchens and wardrobe units in all bedrooms.


The bathroom in the master bedroom is similar to bathrooms of five-star hotels. It has a grand view of the landscaped plaza and pools.

Bathroom fittings include Hans Grohe shower sets in all bathrooms, especially in the master bedroom, which is equipped with a “Rain Dance” shower set. Sanitary ware fittings are from Toto.


Most of the furniture were either custom-built in Singapore according to specifications by the Singapore-based interior consultant. The brown lounge chair is from Baker Furniture imported from the US by a local store.

With the help of a design team from Design Stream, the interior was fitted out with imported furniture, including Baker from the US and FLOS lighting fixtures. Other furnishings were custom made in Singapore.

The furniture items can be described as in a “modern classic” style which won’t look outdated in a few years as design trend changes, says Lai’s personal assistant.

Contemporary Malaysian Art

When it comes to art works for his walls, Lai has become more adventurous in his taste. Of late, he has bought contemporary Malaysian paintings ever since an art gallery was set up in his other condominium development in Seni Mont’ Kiara.

Says Lai: “I sourced them from art shows in the SENI art gallery from time to time. The works include Ismail Latiff, Jolly Koh, Eng Tay and Jansen Chow.”

As the developer of Kiaraville, Lai is even more than happy to know that his buyers are renting out units that command quite good returns. The average rental rate is RM3.80 per square foot. And one of the units in his block has been rented out at RM15,000 per month.

And the company chairman expects the capital appreciation of prime condo units in Kiaraville to reach 50% to 70%.

By The Star

Selangor Dredging to launch projects worth RM1.2b

SELANGOR Dredging Bhd (SDB) will launch five projects worth some RM1.2 billion over the next 18 months but remains cautious about demand.

It hopes to do better than fiscal 2008 but admits that this will be a challenge due to the tough business conditions.

SDB made a fourfold increase in net profit to RM97.1 million for fiscal year March 31 2008.

"In terms of profitability we are there. It is a question of sustaining current profits or whether we could achieve higher," chairman Eddy Chieng Ing Huong said after the company's shareholders' meeting in Kuala Lumpur yesterday.

For the first quarter to June 30, it made a net profit of RM7.03 million, 19 per cent down from the same quarter last year.

"Currently, the outlook is uncertain. We do have properties which are sold and sales are locked in so we will continue to recognise profits," he said.

SDB, which now has three projects worth RM520 million, will remain "cautiously optimistic" of its new launches.

It will launch 248 Jalan Ampang, a RM160 million low-rise condominium development in December and a RM260 million high-rise condominium project at Gilstead Road, Singapore, early 2009.

It will also launch a gated bungalow project in Taman Melati, Kuala Lumpur, phase 2 of Ameera residences in Petaling Jaya, and the controversial Damansara 21 in Damansara Heights, where it plans to build 21 luxury bungalows on a hill slope in the second half of next year.

Managing director Teh Lip Kim said SDB will stagger the launches if there is an economic downturn.


TEH: We will stagger them if there is a downturn

"We need to be flexible. We are experiencing a slowdown in demand and are affected by contractors asking us for revision of cost.

"We are exploring ways to buy steel from stockist and deliver on site for the contractors to use to keep the cost down. We are also leveraging on our financial capabilities to see how we can manage cost," she said.

By New Straits Times (by Sharen Kaur)

Selangor Dredging takes cautious in launching property projects

KUALA LUMPUR: Selangor Dredging Bhd (SDB) will be more cautious in launching property projects due to uncertainties in the market, says chairman Eddy Chieng.

“We have about five developments in the pipeline and will launch them in a staggered manner. We are cautious but still confident of attracting buyers,” Chieng said after the company AGM yesterday.

He added that based on its track record, SDB would be able to sell properties at “respectable” prices.

“Though we are quite new in property development, the quality of the residences that we built has satisfied buyers. We will continue to build high quality residences, focusing on niche market,” Chieng said.

Managing director Teh Lip Kim said the group’s landbank was in various strategic locations in the Klang Valley. However, SDB was very selective in developing its land.

“If we launch all the projects now, we will have no more land in our possession. So we need to think carefully when developing our land to get the best results,” she said.

Teh said the group would launch a development at 248 Jalan Ampang by year-end. The 38-unit low-rise condominium project is forecast to have a gross sales value of RM160mil.

Currently, SDB is developing 20trees, a 23-acre mixed development at Taman Melawati, and the 290-unit Ameera condominium in SS2, Petaling Jaya.

The group is also developing a 22-unit low-rise condominium called Jia in Wilkie Road, Singapore.

SDB is involved in property development, leasing and hotel operation. The group is now focusing on the local and Singapore markets.

By The Star

Magna Prima H1 net leaps 103pc

MALAYSIAN property development and construction company Magna Prima Bhd (MPB) has reported a 77.16 per cent increase in pre-tax profit to RM19.17 million for its second quarter ended June 30, 2008.

In a statement yesterday, it said the creditable performance was driven largely by its ongoing projects in the Klang Valley, namely Dataran Otomobil in Shah Alam, U1 Shah Alam and Magna Ville in Selayang.

The group also posted a 48.68 per cent year-on-year increase in revenue amounting to RM133.8 million from RM90.02 million in the corresponding period last year.

Net profit for the first half of this year also leapt by 103 per cent to RM13.8 million while basic earnings per share increased to 25.78 sen from 12.04 sen.

The company’s outstanding financial performance saw it emerge the overall winner of the KPMG Shareholder Value Award 2007 for the general construction sector.

For the financial year ended December 2007, MPB declared a final dividend of seven sen per share, and recorded a return on equity of 30 per cent.

“Going forward, we are determined to move full steam ahead in our endeavours as a progressive lifestyle property developer and construction company,” said Lim Ching Choy, the MPB executive director and chief executive officer.

By Bernama

New SC measures to boost REITs industry

PETALING JAYA: The Securities Commission (SC) has introduced several new measures to boost the growth of real estate investment trusts (REITs) including allowing the acquisition of uncompleted buildings.

The SC, in its revised REITs guidelines which came into effect yesterday, stated that REITs would be only allowed to acquire property under construction or uncompleted real estates up to 10% of their total asset value.

REITs cannot acquire non-income generating real estates such as vacant land.

Other measures were more freedom for REIT managers to invest in foreign real estate and also allowing a portion of a REIT’s portfolio to consist of properties it does not wholly own or have majority ownership.

The SC also said REIT managers had to appoint a designated person responsible for compliance. This is to ensure that securities laws, land laws and guidelines and rules are complied with at all times.

On the issue of units for cash (other than rights issue), the SC said the number of units to be issued must not exceed 20% of the approved fund size while the placement to one single placee must not exceed 10% of the approved fund size.

The SC said the various measures were to enhance the attractiveness of Bursa Malaysia as a destination for REIT listings and promote a vibrant and competitive REIT industry domestically and regionally.

Am ARA REIT Managers Sdn Bhd chief executive officer Lim Yoon Peng told StarBiz that the SC approval for REITS to acquire partially completed building was a good move as the REIT could participate in the construction also.

“A REIT will be able to buy assets at a lower price. Also since there is a contracted tenant, a REIT can obtain higher yield,” he said.

Lim said all Malaysian REITs focused on local buildings rather than those overseas where the risks could be higher.

Axis REIT Managers Bhd chief operating officer Stewart LaBrooy said the SC’s move to enhance corporate governance among REITs, including the setting up of internal auditors and the harmonising of the rules for REITs was good.

However, he was concerned about the SC’s conditions for issuance of units for cash other than rights issues.

“This could hinder the capital raising exercises of smaller REITs whose fund size is less than RM100mil. However, this ruling would not have an effect on the larger players,” he said.

By The Star (by Joseph Chin)