IJM joint venture wins hotel job in UAE

KUALA LUMPUR: IJM Corp Bhd said its joint venture has won a RM303mil contract from Tamouh Investments LLC to help build a hotel at Al Reem Island in Abu Dhabi, the United Arab Emirates.

The contract, awarded to a company owned by IJM and LFE Corp Bhd, involves the construction and completion of one block of 34-storey five-star hotel tower on three-storey podium, a 24-storey hotel apartment on a three-storey podium, two levels basement carpark and other associated foundation and external works.

The package one project is expected to be completed on Feb 28, 2010.

The joint-venture company is 70:30 owned by IJM Construction Sdn Bhd and LFE Engineering Sdn Bhd, which are wholly owned units of IJM and LFE Corp respectively.

By The Star

IJM shares up on Mideast delight

IJM Corp, Malaysia’s second biggest construction company, rose for the first time in seven days after OSK Research Sdn Bhd raised the stock rating on the builder’s RM303 million (US$86 million) Abu Dhabi project.

The shares added 1.8 per cent to RM5.55 at midday break, bound for the largest increase since June 10.

The “Middle Eastern delight” led Jeremy Goh, an analyst at OSK Research, to upgrade IJM to “trading buy” from “neutral” and raised the stock’s target price to 6.10 ringgit from 6.0 ringgit.

Petaling Jaya, Malaysia-based IJM said yesterday a joint venture owned by the company and LFE Corp won the contract to build a hotel in Abu Dhabi from Tamouh Investments LLC. The project is expected to be completed by the end of February next year, IJM said.

“We expect subsequent awards to flow over the coming months” following this contract, said Goh, who also raised his forecast for IJM’s 2010 and 2011 profits to RM318.9 million and RM353 million, respectively, on the expectation that the builder will secure more projects worth about RM1.7 billion by the end of the year.

“This amount is expected to include two contracts that could be substantial in value,” Goh said. He also expects IJM to participate in the Light Rail Transit extension project in Kuala Lumpur.

By Bloomberg

Halal hub project to help KHSB return to profitability

KUMPULAN Hartanah Selangor Bhd (KHSB) is set to return to the black by end-2009 as it starts to gain from the development of its industrial properties, especially the Selangor Halal Hub (SHH) in Pulau Indah, Klang.

The property arm of the state's investment firm Kumpulan Darul Ehsan Bhd also plans to dispose of non-strategic properties to improve its financial standing after suffering a loss of RM35 million in the last financial year ended December 31 2008.

"We have fully sold Phase 1 of SHH comprising 88ha of industrial land within four years, worth a total of RM133 million," said its executive chairman Datuk Abdul Karim Munisar.

He said Phase 1 is expected to bring in direct investments worth more than RM1 billion, creating about 2,000 new jobs.
Abdul Karim said major players that will operate in the area include Ramly Food Industries Sdn Bhd, Felda, Mara and PML Dairies.

"All facilities have been put in place. It's only a matter of time before these companies start construction of their facilities. One company has started construction and is expected to begin operations in two years," he said.

Speaking to reporters after KHSB's annual general meeting in Shah Alam, Selangor, yesterday, Abdul Karim noted that reclamation works for Phase 2 which involves 97.6ha of industrial land with a gross development value (GDV) of RM234 million have been completed.

"Negotiations with potential foreign and local investors are still ongoing, and we expect to conclude sales worth at least RM70 million this year," he said.

Abdul Karim said construction of the South Klang Valley Expressway is also expected to enhance the accessibility to Pulau Indah and will be a catalyst of growth for the Pulau Indah development.

"We expect to fully sell off Phase 2 within five years," he said.

With a land bank of more than 1,600ha, KHSB, together with Kumpulan Darul Ehsan, are also looking into the possibility of venturing into sand and minerals exploration and exploitation to diversify its cash stream.

"Besides the 1,600ha of land we have now, the state agency is expected to transfer another 2,000ha of land to us to help improve the cash flow of the company in the future," he said, adding that the firm is in the midst of acquiring a strategic land in Petaling Jaya for a proposed mixed development with a GDV of RM600 million.

For financial year ended December 31 2008, the company's revenue dropped 60.08 per cent to RM96.1 million from RM240.8 million previously.

By Business Times (by Azlan Abu Bakar)

KHSB banks on land sale, halal hub

SHAH ALAM: Kumpulan Hartanah Selangor Bhd (KHSB) is set to return to the black in the current year ending Dec 31 (FY09) after it disposes of land and reaps profit from its ongoing projects.

“Our focus will be on industrial properties, particularly in the Selangor halal hub project on Pulau Indah, Klang.

“We also plan to dispose of non-strategic land,” executive chairman Datuk Abd Karim Muniar said, without elaborating.

Speaking after a shareholders’ meeting here yesterday, he said the property unit of Selangor’s state investment arm Kumpulan Darul Ehsan Bhd had already locked in sales of RM133mil for its Selangor halal hub.

“Phase 1 comprising 220 acres has been fully sold, yielding sales of RM133mil.

“The total gross development value of the 244-acre Phase 2 is RM234mil and sales are expected to be completed in three to five years,” Abd Karim said.

Talks were ongoing with both foreign and local parties and KHSB expected to secure sales of RM70mil from the second phase of the Selangor halal hub project by the year-end, he said.

“Phase 1, which is expected to commence business in the next two years, is projected to bring in direct investment of RM1.06bil to Pulau Indah and create at least 2,000 jobs,” he added.

Among the major players that would operate there are Ramly Food Industries Sdn Bhd and Felda Holdings Bhd.

KHSB recorded a net loss of RM38.5mil on revenue of RM93.4mil for FY08 mainly due to provisions and impairment losses.

The company currently has a total land-bank of 4,000 acres, largely in Selangor.

Abd Karim said KHSB was in discussions to acquire a 9.5-acre in Section 14, Petaling Jaya, for a mixed property project with an estimated gross development value of RM600mil.

He said the company was also exploring opportunities in the sand and minerals exploration.

By The Star

WCT sets sights on new LCCT

SHAH ALAM: WCT Bhd has set its sights on taking part in the construction of the proposed RM2 billion low-cost carrier terminal (LCCT) in Sepang.

Its deputy managing director Goh Chin Liong said yesterday that WCT, as one of the largest construction and property developers in Malaysia, would want to bid for the construction of the new LCCT.

“They have started to call for the pre-qualification exercise of the project through the newspapers and we will just continue to pursue,” he told reporters after the company’s AGM yesterday.

Last month, Malaysia Airports Holdings Bhd (MAHB) announced that open tenders for the new LCCT would be out this month and a project management company was appointed.

Goh said most construction companies locally were trying to get part of the contract. However, he said it would take several months before WCT received feedback about its interest in the project.

While WCT had placed its hopes on securing the new LCCT project, the company was on track to reach its targeted order book of RM1 billion for this year alone, Goh said.

The company had earlier in the year secured additional works for the Abu Dhabi F1 circuit and the new Doha International Airport project which amounted to nearly RM500 million.

As of March this year, WCT’s order book of RM2.9 billion was sufficient to last until end-2010, he said.

“We have cash and bank balances with fixed deposits totalling about RM650 million as per the first quarter of 2009.

It is certainly a strong and healthy cash flow,” he said when asked to comment on WCT’s balance sheet.

On recent analysts’ reports that WCT was close to securing a billion ringgit infrastructure project in Sabah, Goh neither confirmed nor denied WCT’s involvement but said WCT was among the more active construction players in that state.

“If we have secured such a project, we will announce at the appropriate time to Bursa Malaysia.

The analysts might not have gotten the information from us and sometimes they speculate,” he pointed out.

On the RM720 million upgrading of the Kota Kinabalu International Airport, Goh said WCT had finished building the new wing at the terminal building and it had completed 80% of the refurbishment in the old wing.

Goh also said WCT’s objective was to improve its earnings for the financial year ending Dec 31, 2009, despite posting a 29.5% lower net profit to RM39.22 million in the first quarter ended March 31, from RM55.58 million in the same quarter last year.

Last year, WCT posted a net profit of RM101.33 million on the back of a RM3.71 billion revenue.

WCT fell 16 sen to RM2.03 with 7.03 million shares done yesterday, in line with the weaker overall market.

By The EDGE Malaysia (by Yong Min Wei)

WCT on lookout for jobs in Mideast

SHAH ALAM: WCT Bhd has given a sombre outlook for the year as big construction jobs get harder to come by and the property market has turned softer.

Hazy order-book visibility for WCT and the construction sector as a whole, however, did not hamper the Employees Provident Fund’s (EPF) appetite for WCT shares.

Latest filings with Bursa Malaysia showed the pension fund now owns the single largest block of shares in WCT with a 26.3% stake. The EPF started the year holding 18.77% in the company.

“It (the EPF) had not asked for board representation,” chairman Datuk Ahmad Sufian Abdul Rashid told a press conference after the group’s AGM yesterday.

WCT’s share price took a beating in January and drifted below RM1 by early March on a massive sell-off following the termination of a contract at an on-going project to build a race cource in Dubai.

The case is currently under arbitration.

Despite the setback, deputy managing director Goh Chin Liong said the group was still actively scouting for new jobs in the Middle East.

Earlier this year, it bagged a total of RM500mil worth of new contracts in Abu Dhabi and Qatar. The contracts are additional jobs given by its existing clients.

“We are very cautious about taking on new ventures” in view of the weak global economic situation, Goh said.

WCT is targeting to achieve RM1bil worth of new order book this year, which is in line with analysts’ expectation.

As at end-March, the group’s total outstanding order book stood at RM2.9bil. This includes some RM750mil worth of internal jobs such as The Paradigm commercial development project in Kelana Jaya, Selangor.

Several brokerages, including Maybank Investment Bank and RHB Research, had recently linked WCT to upcoming huge infrastructure development projects in Sabah and Sarawak.

“All that we can say is that we are active in Sabah,” Ahmad Sufian said.

Currently, WCT is involved in ongoing works at the Kota Kinabalu International Airport and a water supply project in Kudat. In September last year, the company launched a high-end residential project called d’Banyan Residency@Sutera in Kota Kinabalu.

Consensus estimates put WCT’s current financial year ending Dec 31, 2009 (FY09) earnings per share at 17.3 sen, but falling to 15 sen per share in FY10.

WCT’s share price had doubled from its low point in March, and was up 34% year-to-date at RM2.03 yesterday.

By The Star (by Izwan Idris)

What will houses and buildings look like in the future?

Ten years from now, we will probably be eating food that has yet to be invented. Even if it’s green gunk cultured in a petrie dish, we will eat it with gusto, knowing that we are helping to save the planet.

Similarly, after a hundred years under a rock, the motor vehicle industry is beginning to evolve, despite the design of the latest Proton Saga which looks like something my father would have been proud to own. In 10 years, we may all be driving hybrids or electric cars.

The traditional rowdy Mat Rempits may have given way to a new generation who will steal up behind old ladies in their silent electric MPVs and flatten them before they have a chance to look round. Nevertheless, this will all be accepted as the price of progress.

A fight for survival is the most powerful incentive to evolution, whether you’re a microbe or a personal financial consultant. Sadly there is a complacency pervading the housing industry which has produced little innovation in the last 30 years.

Arguably, those who live in link houses will only aspire to bigger ones. The more fortunate in life will buy a bungalow with lots of roof, windows from Alcatraz and corinthian columns framing the entrance portico.

But there is little experimentation. Cluster houses were a flop, timber is passé, and “modern tropical” has become a catchphrase for koi ponds and bathrooms for exhibitionists.

Even though speculative housing needs to have broad appeal, niche developers have been slow to emerge with a response to the fundamental changes in the Klang Valley demographics. A younger middle class may not be so obsessed with the ownership of landed property and may focus more on lifestyle. The Verve Suites in Mont Kiara are a rare and successful example of this philosophy.

Britain has seen an interesting response to changing demand patterns. The high divorce rate has produced a huge band of middle-aged singles looking for companionship, but blended with a desire for some privacy. The emergent real estate solution is a small group of separate living units, linked to a communal lounge and recreation area. This sounds to me a lot like my student digs of the 1960s. I’m sure it’s much more sophisticated although it doubtless shares the same cherished objective of mindless bonking.

If one is looking for a single major evolutionary shift in global real estate markets, the buzzword is probably ‘sustainability.’ Exactly what comprises sustainability is well illustrated on this chart.

Phrases such as “best practice” and “diverse and flexible workplace” may sound alien and idealistic but they are objectives which are rapidly becoming the expectations of any multinational company. This year’s expectations are next year’s demands, so we need to be aware of these changing standards and plan for them.

In practical terms, the “triple bottom line” involves three elements: high technical specifications, environmental responsibility and financial viability.

A need for high technical specifications now applies to practically any new office development. Few businesses can now operate without IT. Even suburban buildings which are traditionally the refuge of the cost-conscious, now have to meet minimum technical requirements.

Environmental responsibility encompasses the provision of a pleasant workspace and office buildings with in-house facilities such as a gymnasium, senior staff canteen and even a swimming pool are becoming popular.

Equally importantly, energy-saving is becoming and will remain a major issue, particularly with the introduction of internationally accepted “green” standards by which buildings can be graded.

Finally of course, financial viability is paramount. “Green” buildings with attractive facilities are not cheap to develop and so far, the only incentive to incurring this additional cost is the belief that sustainability will become crucial to lettability. Over time, I believe this extra cost will be accepted as inevitable and capital values will rise, like social values, to meet the market.

● Chris Boyd is executive chairman of Regroup Associates Sdn Bhd property consultants. We welcome your feedback on this article. Please write to starbiz@thestar.com.my

By The Star (by Chris Boyd)

Deal with Dubai developer collapses

Property developer UEM Land Bhd's plan to sell 17.4ha of land to one of Dubai's largest private developers for RM396.5 million has fallen through.

The deal, which was first struck in June 2008, was for Damac Properties (Malaysia) Sdn Bhd to develop three parcels of commercial land that forms part of Puteri Harbour at Nusajaya in Johor.

Under a sale and purchase agreement (SPA) signed in June 2008, both sides were to have agreed to the conditions of the agreement by June 2009.

"The termination will have no impact on our financial results as the expected revenue from this proposed transaction has not been recognised in our accounts," UEM Land managing director and chief executive officer Wan Abdullah Wan Ibrahim said in a state-ment yesterday.

UEM Land and Damac had been in discussions on certain issues relating to the conditions of the deal. However, they were not able to come to an agreement on these issues and have now agreed for the SPA to be terminated.
Damac on June 16 told UEM Land it did not agree to further extensions of the extended approval period, causing the SPA to lapse.

"Given the current global economic conditions and the impact on many companies and countries including those in the Middle East, we felt that there is no point in pursuing the matter and that a termination of the SPA was in UEM Land's best interest," Wan Abdullah said.

"Our aim is to accelerate the momentum of development and investment in Puteri Harbour. The foundation has already been laid and we have received strong interests from potential investors to partner us in developing the area. We are confident of concluding some of these deals in the near future," he added.

News reports as recent as April had already raised questions regarding the deal, given Damac's troubles following the property bubble bursting in Dubai beginning end of last year.

In December 2008, Damac cut 200 jobs or 2.5 per cent of its workforce.

The company has also called off its Palm Springs project, a 25-storey residential and resort development, planned for the Jebel Ali Palm in Dubai.

UEM Land has another Dubai-based partner in Limitless LLC as a major investor in Nusajaya. Its joint venture is through Haute Properties Sdn Bhd, which will develop a 44.4ha residential project in Puteri Harbour with an initial investment of RM241.8 million.

It is understood that a layout for this project has already been submitted, and will continue as planned, with completion scheduled for 2013 with an estimated gross development value of more than RM1.5 billion.

By Business Times

UEM Land, Damac sale agreement lapses

PETALING JAYA: UEM Land Bhd’s agreement with Damac Properties (M) Sdn Bhd for the RM396mil sale of 43.5 acres in Puteri Harbour, Nusajaya has lapsed.

UEM Land told Bursa Malaysia yesterday Damac had failed to resolve issues relating to the conditions of the purchase agreement within the agreed period.

Managing director and chief executive officer Wan Abdullah Wan Ibrahim said the termination would have no impact on the company’s financial results as the expected revenue from this proposed transaction had not been recognised in its accounts.

“The exit of Damac would not impact the development of Nusajaya as we are currently in talks with new developers to take over its place,” it said.

According to sources, developers from Australia and Singapore have expressed interest to purchase parcels of land in Puteri Harbour, the waterfront development in Nusajaya.

By The Star

UEM Land down after Dubai firm pulls out of RM396m deal in Nusajaya

KUALA LUMPUR: UEM Land Holdings Bhd share price fell this morning after Damac Properties (M) Sdn Bhd, which is part of Dubai's Damac Group, pulled out of a deal with UEM Land to acquire a piece of land for RM396.44 million in Nusajaya, Iskandar Malaysia.

At 9.40am, UEM Land was down 9 sen to RM1.74. It was also among the most actively traded counters with 10.22 million shares done in early trade.

Yesterday, UEM Land said it had received notification on Tuesday that Damac would not be interested in further extending the sales and purchase agreement (SPA), which was signed on June 12 last year.

The company told Bursa Malaysia that under the terms of the SPA, the period to fulfil the condition would expire 12 months from the date of the SPA unless extended by mutual agreement by both parties.

"The parties had been in discussions on certain issues relating to the conditions precedent and a possible extension of the extended approval period. However, on Tuesday, UEM Land received notification stating that they are not agreeable to further extension of the extended approval period," it said.

UEM Land said the SPA relating to the proposed disposal had lapsed and was of no further effect.

By The EDGE Malaysia (by Surin Murugiah)

Genting: Sentosa project on track, within increased budget

The gaming group says the casino project in Singapore is set to have its soft opening in the first quarter of next year

GAMING group Genting Bhd says the casino resort it is building in Singapore is on track for a soft opening in the first quarter of next year and that its construction cost is within the increased budget.

"Genting International revised the budget earlier because the project had overrun the initial budget. At this point, it is within the enlarged budget," Genting chairman and chief executive Tan Sri Lim Kok Thay told shareholders during its annual meeting in Kuala Lumpur yesterday.

Genting International, recently renamed Genting Singapore plc, said earlier this year that its investment in the casino resort on Sentosa Island was expected to increase to S$6.6 billion from S$6 billion (RM16 billion from RM14.5 billion).

"The cost has increased because we have added and changed some specifications so that we will end up with a much, much better project from the original," Lim said.
He added that the project, which boasts of a Universal Studio theme park, Hard Rock Hotel and the world's biggest oceanarium, will open in stages, starting with the casino.

"This is a large project. It is not prudent to launch all at one go although that's the ideal. The plan is to open the gaming part first to get cash flow intact," Lim said.

Genting Singapore is a 54.4 per cent-owned subsidiary of the group.

Lim quelled speculation that Genting was eyeing an ultimate investment in Macau through the recent purchase of a 3.2 per cent stake in MGM Mirage and US$100 million (RM353 million) of its bonds.

MGM Mirage, a major casino operator on the Las Vegas strip, is part of a joint venture in Macau.

"We are treating it as an investment at the moment, to maximise returns on cash rather than keeping it in deposits. The plan is no more than that," he said.

"The bond is secured against two top quality assets and, if repayments failed, we can collect the collateral. The management recognises that this is a good investment.

"As we get to know MGM better, we hope we can strike out some marketing alliances."

Lim also said that despite the recession in the UK, the group expects its investments there "to turn in profits at the same time as projected when it made the acquisitions".

The group acquired control of Stanley Leisure, the UK's largest casino operator, in October 2006.

"The business has got a lot of potential," Lim said. Already a major player in the UK, the unit can later expand to Europe, which is a "greenfield for gaming".

"It will be good to get the timing right for investment, but no one has predicted this round of financial crisis."

On another development, Lim said that Genting was just a "minor player" in Rank Group, the UK's bingo hall operator in which Tan Sri Quek Leng Chan's Guoco has reportedly built up a 24.1 per cent stake as of last October.

Genting owns about 11 per cent of Rank, according to media reports.

By Business Times (by Chong Pooi Koon)

Serviced apartments in Hong Kong more resillient

KUALA LUMPUR: The serviced apartment sector in Hong Kong has been relatively more resilient than the luxury residential market during the current economic downturn, according to real estate services agency Colliers International (Hong Kong) Ltd.

According to the "Serviced Apartments Overview - June 2009" report published by Colliers International recently, between August 2008 and April 2009, the average rental of serviced apartments registered a -12.9% fall compared with a fall of -24.6% for luxury residential leasing property.

The pace of serviced apartment rental decline slowed to -1.7% month-on-month (m-o-m) in April 2009 to HK$44.78 psf per month.

The average rental of serviced apartments decreased 6.4% quarter-on-quarter (q-o-q) in 4Q2008 and 5.4% q-o-q in 1Q2009. Average luxury residential rentals fell 13% q-o-q in 4Q2008, while its downward adjustment narrowed to 8% q-o-q in 1Q2009 as inexpensive opportunities were snapped up by early-bird occupiers.

The rate of decline in rentals tapered off further to less than 2% m-o-m, with average unit rate at HK$34.87 psf per month. Individual serviced apartments of medium-to-large sizes experienced a double-digit fall in rental.

Director of research and advisory Simon Lo said in a statement that a number of occupiers had chosen to relocate to cheaper areas, or to downgrade their accommodation in terms of size or quality due to the general tightening in housing allowances.

"Sustained weakness in occupational demand and the cost-cutting initiatives among multinational companies remain the major challenges for the overall residential leasing market," he added.

Colliers said the leasing demand has dropped significantly, and some vendors have changed their leasing strategies by offering competitive rentals to fill their units in view of a demand contraction.

Some 75% of serviced apartment tenants have also chosen short term leases of less than six months, it added.

Colliers expects rentals in the luxury residential market in Hong Kong to fall 12% over the next 12 months, while the potential rental downslide in the serviced apartment sector will be limited to 8% during the same period, as the latter will continue to be resilient with its services and flexible lease terms.

By The EDGE Malaysia (by Racheal Lee)

I-Bhd to offer IT solutions to others

From left: Eu Hong Chew, Tan Sri Hamad Kama Piah Che Othman and Datuk Seri Kong Cho Ha looking at a model of i-City after the launch of the iO2 system Tuesday.

SHAH ALAM: I-Bhd, the developer of i-City commercial project, is looking to offer its digital technology solutions to other developments in the region.

Speaking at the launch of the I-Office Squared (iO2) system yesterday, chairman Tan Sri Hamad Kama Piah Che Othman said this would be a technology-based income for the company.

“I-Bhd will have another revenue stream to complement the one from property development when this roll-out is fully operational,” he said.

The system was launched by Housing and Local Government Minister Datuk Seri Kong Cho Ha.

Hamad said tenants at i-City would be offered a range of built-in facilities and services that would enable them to lower operational costs.

I-Bhd has teamed up with Cisco and Australia-based Servcorp to set up a joint-venture, i-Office2 Sdn Bhd, to provide managed services to i-City and other property projects in the country.

The iO2 is a multi-tenant managed service system. The key tenant service offerings include high-speed Internet access, IP telephony and unified communications, wireless/mobility solutions, network and physical security and control over their office environments.

I-Bhd CEO Eu Hong Chew said the company would focus on local markets for its technology solutions services before venturing into other countries in the region.

“We will probably have the first roll out of the iO2 system beyond i-City by early next year,” he told StarBiz in a phone interview.

He said I-Bhd was looking to either invest and provide its solutions to projects undertaken by other developers or license the products to them.

By The Star (by Rachael Kam)

I-Bhd plans digital expansion outside i-City

GOING BIG ON DIGITAL... I-Bhd is planning to expand its digital technology solutions beyond i-City, says its chairman Tan Sri Hamad Kama Piah Che Othman (3rd from left) at the launch of the property developer’s i-Office2 system in Shah Alam yesterday. At the event, Housing and Local Government Minister Datuk Seri Kong Cho Ha presented a certificate of recognition to Hamad for i-City’s unique and innovative property development. Also present were (from left) I-Bhd non-executive director Eu Hong Chew, Shah Alam mayor Mazalan Md Noor and I-Bhd deputy chairman Datuk Lim Kim Hong. Photo by Abdul Ghani Ismail

SHAH ALAM: Property developer I-Bhd is looking to expand its digital technology solutions to other development areas in the country and the region.

Speaking at the launch of the i-Office2 (iO2) system here yesterday, I-Bhd chairman Tan Sri Hamad Kama Piah Che Othman said the company’s latest endeavour would provide it with technology-based income.

“When this rollout is fully operational, I-Bhd will have another revenue stream to complement the one from property development,” he said.

Hamad Kama Piah said the built-in facilities and services of i-City would enable clients to save costs due to the extensive planning, significant economies of scale and strategic alliances with partners. iO2 is the result of a joint venture between I-Bhd and Australian virtual business offices creator Servcorp to deploy network and telecommunication services throughout the i-City development.

Housing and Local Government Minister Datuk Seri Kong Cho Ha, who launched the iO2 system, said it was not surprising that digital technology was incorporated into property development.

“This ICT-enabled commercial development will act as a catalyst to spur more growth for activities driven by economies of knowledge especially in the IT-related sector,” he said.

By The EDGE Malaysia

I-Berhad upbeat on new revenue

I-BERHAD, developer of the RM2 billion i-City project in Shah Alam, Selangor, will have a new income stream starting next year that will improve its revenue and net profit, a top official said.

Already the company is expecting revenue to improve this year, mainly because it has, in the past six months, leased 300,000 sq ft of office space in i-City, an MSC Malaysia Cybercentre.

By December, I-Berhad will complete and lease an additional 200,000 sq ft of office space, its director Eu Hong Chew said.

In the past, I-Berhad's income was mainly from property sales. It posted a net profit of RM15.3 million on revenue of RM95.8 million last year.

Chairman Tan Sri Hamad Kama Piah Che Othman said I-Berhad, in partnership with Australia's Servcorp, will offer its managed office system, a digital technology solution that has been the tackling point for i-City, to developers involved in commercial projects.

Initially, I-Berhad and Servcorp, through i-Office 2 Sdn Bhd, their 35:65 joint-venture firm, will offer the technology to developers in Malaysia. It may branch out to Southeast Asia in a few years and target high-end residential developments, too.

Hamad added that i-Office will invest RM100 million over the next 10 years in information technology infrastructure, equipment and services in i-City for the roll-out plan.

"We will roll out the services beginning the first quarter of 2009. When fully operational, I-Berhad will have another revenue stream to complement the one from property development," he said at the launch in Shah Alam yesterday by Housing and Local government Minister Datuk Kong Cho Ha.

Under the plan, i-Office will deploy an IP-based open network platform in i-City that allows building technologies such as heating ventilation and air-conditioning and CCTVs, among others, to be integrated with traditional IP-based communications systems on a common network platform.

"When tenants relocate to i-City, they would be offered a range of built-in facilities and services, enabling them to lower their operational costs by 33 per cent. The same goes to tenants in other developments, which have applied our technology," said Hamad, who is also the president and chief executive officer of state-owned investment fund Permodalan Nasional Bhd.

By Business Times (by Sharen Kaur)

KYM to sign RM300m medical hub deal soon

The medical complex project in Malacca is expected to see KYM back in the black as early as next year, says KYM group managing director

Property developer KYM Holdings Bhd is expected to sign an agreement as early as next week to help build a RM300 million medical complex in Malacca, its group managing director Datuk Raymond Chong Thin Choy said.

"Construction of the medical hub should start by early next year," Chong told Business Times in an interview.

The federal government-funded project, under the Ministry of Health, will include construction of a state health administration centre, nursing institute and public health laboratory.

KYM, controlled by Datuk Lim Kheng Yew, will have 70 per cent stake, while its partner in the venture, Yayasan Melaka, a state government agency, will hold the remaining 30 per cent.
The project is expected to see KYM back in the black as early as next year, said Chong.

"We are targeting to break even in the financial year ending January 31 2010 and rake in sustainable profits from 2011 onwards."

KYM last reported a profit of RM28.7 million in 2006.

Its return to profitability and planned transformation from property developer to infrastructure player hinge largely on the sale of its landbank in Perak to Brazil's Vale SA, the world's biggest iron ore producer.

Completion of the multi-million-ringgit deal will help KYM degear itself, bringing its gearing ratio to as low as 0.41 time, or RM29.08 million, from the current 8.94 times, or RM209.73 million, while its net tangible asset is poised to rise to 89 sen a share from 29 sen.

The metal producer, which intends to pump in as much as RM9 billion into the Perak economy, has agreed to buy land in the silver state from KYM for RM101.9 million.

Vale also has an option to buy more land from KYM for RM93.7 million.

"It's truly a godsend," said Chong, adding that KYM is hoping to get as much as 10 per cent, or RM900 million worth, of the construction contracts on offer by Vale.

Securing RM900 million worth of jobs could help keep KYM busy for the next three years. Vale is expected to start developing the land as early as next year.

Chong also said that KYM in-tends to venture into quarrying in Perak to complement Vale's operational needs.

By Business Times (by Francis Fernandez)

US housing construction rebounds sharply

WASHINGTON: US housing construction rebounded sharply in May from all-time lows, official data showed yesterday, stoking hopes the real-estate crisis at the heart of the recession may be easing.

The Commerce Department reported construction starts on privately owned homes vaulted 17.2 per cent in May from the prior month to a seasonally adjusted annual rate of 532,000, marking a third consecutive month of gains.

Building permits, an indicator of future activity, leapt to a seasonally adjusted annual rate of 518,000, an increase of 4.0 per cent from April.

By AFP

Mah Sing buys land next to Sri Pulai Perdana 2

MAH Sing Group Bhd has bought a 2.3ha freehold land next to its existing Sri Pulai Perdana 2 project for about RM2 million.

This brings the total land size of Sri Pulai Perdana 2 in Johor Baru to about 29ha, with RM225 million estimated gross development value.

“The increase in gross development value of Sri Pulai Perdana 2 arising from future development on the (purchased) land is expected to enhance the future profit and net assets of Mah Sing Group,” the company said in a statement to Bursa Malaysia.

By Business Times

Cool roofs for hot climates

Heat absorbers: Concrete surfaces absorb heat, causing the heat island effect. If roofs and buildings are painted white, they will reflect the heat instead.

The stifling heat might have gotten some of us thinking about how best to cool our homes without pushing up the electricity bill in this time of financial crunch.

Dr Gary Theseira thinks he has the answer – simply reflect the light and heat back to the atmosphere. He suggests that we look at the potential of our roofs – that space that is directly exposed to the sun and absorbing vast amounts of heat during the day – as a reflector.

He says conventional tiles absorb heat as almost all are made from material that do not reflect heat and the heat absorption is intensified manifold with the dark-coloured tiles preferred by most Malaysians.

The botanist with the Forest Research Institute of Malaysia (FRIM), who has represented Malaysia at several United Nations climate change negotiations, is frustrated that no one take is taking him seriously about making changes to our roofs.

Theseira feels the world is giving disproportionate attention to the loss of white snow cover at the poles, and is failing to address the heat island effect of cities at the Equator, where the heat intensity is 2.5 times higher than at the pole.

“If we at the Equator bounce off the light and heat back to the atmosphere, that would really help,” he explains.

Having designs on the roof as a climate change mitigating tool is not a new idea but it hasn’t caught on in a big way. In fact, the roof is not the only building surface that can help lower the temperature of buildings.

“In the Middle East and Mediterranean, for thousands of years, buildings have been traditionally white-washed to keep them cool in the summer,” says Dr Hashem Akbari, who heads the Heat Island Group of the Lawrence Berkeley National Laboratory at the University of California, Berkeley, California, in the United States.

(Heat island is a phenomenon where an urban centre is significantly warmer than its surrounding rural area due to the modification of land surfaces and heat generated by high energy usage.)

Akbari is known for his relatively simple idea to cool the earth’s urban surfaces: make all rooftops and paved surfaces white. He is pioneering the white-roof concept and recently launched the 100 Cool Cities programme to get homeowners to switch to white roofs or at least a cool-coloured roof. No cities have signed on, however, despite showing interest.

“I am hoping to create an international programme to recruit as many large cities as possible. My current focus, in addition to the US cities, are China, India, Brazil and the Middle East. I would like to make sure that the building standards in all these countries prescribe white or cool-coloured materials for roofs,” he says in an e-mail interview.

Akbari found that communities with white roofs and cool pavements are a few degrees cooler, thus requiring less air-conditioning in the summer. Also, a lower ambient temperature reduces the reaction rate of smog-producing pollutants, leading to better air quality.

Akbari’s work shows that replacing 10sqm of a dark roof with a reflectivity of 0.15 albedo (reflecting only 15% of incoming solar radiation) with a white roof with a reflectivity of 0.55 will offset about one tonne of carbon dioxide (CO2) emissions.

White is best

“If all cities in hot and temperate climates were to use white material on their roofs or cool-coloured materials, we can offset about 24 gigatonnes of CO2 emissions which is equivalent to over 10 years of emissions from all cars in the world. The current world emission is about 27 gigatonnes, ” he says.

He says a white roof has an initial reflectance of about 0.7 to 0.85 albedo. Over time, its reflectivity drops (due to dust collection) to about 0.55 to 0.65 albedo, depending on the location and climate.

Globally, roofs account for 25% of the surface of most cities, and pavement accounts for about 35%.

“I call it win-win-win,” Akbari says. “First, a cooler environment not only saves energy but improves comfort. Second, cooling a city by a few degrees dramatically reduces smog. And the third win is offsetting global warming.”

He says some leading industries are pushing the idea while some, who are afraid of losing market share, resist.

His colleague Arthur Rosenfeld, who is a commissioner with the California Energy Commission, told the San Francisco Chronicle in an interview, that the team estimated that a worldwide conversion to white rooftops would take at least 20 years.

Rosenfeld said California is the only state to embrace white roofing, at least for commercial projects. In 2005, with the aid of Akbari’s research, the state passed a building standards law that requires all builders to first consider cool colours for major retrofits or new buildings.

Akbari says the roofing industry responded well, designing new materials and cooler colours to appeal to builders and homeowners seeking cost-savings and ecological benefits. Cooler colours refer to paint with cool pigments that reflect more of the near-infrared part of the solar spectrum. Painting or coating roofs is one option, he adds.

While costs (without incentives from the government) is prohibitive, there are Malaysians who have embraced the idea at their own expense. When Tony Cheah of Taman Tun Dr Ismail in Kuala Lumpur decided to renovate his single-storey link house two years ago, he came across a UV-resistant roof coating called Tileflex.

“Replacing the whole roof would have cost me in excess of RM25,000, not to mention the mess I would have had to endure. I had no intention of changing the original tiles which were still in excellent condition,” he says, adding that he ended up paying RM6,500 and got a new coating for the roof in three days.

While Cheah couldn’t specify the savings in electricity bill or provide a reading of the ambient temperature in the house post-renovation, he says the house “is considerably cooler”.

Lim Voon Bin, director of Nuruf Sdn Bhd which distributes Tileflex, says electricity savings will be apparent in the long run. He claims the product reflects up to 3°C of heat.

Lim ran a roof-making business for 30 years before he closed down his factory in Nilai in 2004 when he realised that he would be helping the environment if he could “restore roofs rather than replace them”. So far, he has restored 150 houses since 2005, as eco-consciousness takes root among Malaysians.

By The Star (by Hilary Chiew)

Scomi eyes US$2.5b monorail job in Brazil

Scomi Engineering is banking on its excellent delivery time track record to win the tender for the first phase, which will open in the middle of next month.

Scomi Engineering Bhd is confident that it can win a US$2.5 billion (RM8.8 billion) job to set up a monorail system in Sao Paulo, Brazil's largest city, says president Hilmy Zaini.

The tender for the first phase, which will open in the middle of next month, is part of a 100km monorail project to be commissioned by the State of Sao Paulo in preparation for the 2014 World Cup, to be held in Brazil.

Scomi Engineering will be the systems supplier and designer of the project, while CR Almeida will work on the civil construction.

The state government has earmarked some US$10 billion (RM35.2 billion) to design monorail lines and modernise its metro lines.
The US$2.5 billion is for the first 45km of the monorail line.

"We are banking on our excellent delivery time track record to be a main attraction, because of the June 2013 deadline the Brazilian authorities have, as well as the fact that we have a very strong civil construction partner in CR Almeida," Hilmy said.

This in turn will provide numerous opportunities for implementing monorail systems in the 12 cities selected to host the games.

The city of Sao Paulo is set to host the opening match.

Scomi Engineering is hosting the Brazil Monorail Consortium delegation comprising officials from the transportation and planning departments of the city and State of Sao Paulo on a visit here since June 11.

The visit is part of a fact-finding mission. The delegation will also go to India to view Scomi's project in Mumbai in addition to visiting Japan.

The delegation will not only meet with embassies and senior management but will also stop by the Asian Oil & Gas exhibition, take a ride on the Kuala Lumpur Monorail and visit Scomi's North KL facility.

Sao Paulo Metro's director of metropolitan transport planning and expansion, Jair Felipe Molina, said it hopes to announce the winner of the tender between end-August and mid-September and have construction start by January next year.

SP Trans SP Brazil's director of transportation, Pedro Luiz de Bnida Machado, said there were also plans for another monorail line in the south zone of Sao Paulo, estimated to be worth US$4 billion (RM14 billion).

By Business Times (by Presenna Nambiar)