CapitaLand registers first quarterly loss since 2003

Singapore: CapitaLand, Southeast Asia's biggest developer, yesterday posted its first quarterly loss since 2003 due to writedowns on investments and said the outlook for 2009 was uncertain.

Although CapitaLand is benefitting from soaring home sales in Singapore and China, its two biggest markets, it has suffered from the drop in the value of its investment properties in Singapore, Australia and elsewhere in the region.

The firm reported a 45 per cent increase in China home sales to S$158.2 million (S$1 = RM2.45) during the second quarter, but booked a net S$280.9 million in revaluation and impairment losses due mainly to a drop in the value of its commercial and Australian properties.

"Although some stability has been restored in the financial markets, the outlook for 2009 remains uncertain," CapitaLand chairman Richard Hu said in a statement.

CapitaLand chief executive officer Liew Mun Leong said that excluding writedowns, operating profit was higher in the second quarter compared with the first, and that the improvement will likely continue in subsequent quarters due to an improvement in market sentiment.

CapitaLand, which is 40 per cent owned by Singapore state investor Temasek, reported an April-June net loss of S$156.9 million compared with a net profit of S$515.2 million a year earlier.

The loss was expected by several analysts although estimates varied widely due to uncertainty over how CapitaLand would revalue its various assets.

The company's bottom line was hit by writedowns and impairment charges at Australian unit Australand, a residential development in Singapore, as well as the drop in the value of real estate held by CapitaCommercial Trust, a Singapore-listed real estate investment trust.

Excluding revaluations and impairments, CapitaLand said it made a net profit of S$124 million for the quarter.

Hu said the firm was in a strong position going forward as it had S$4.2 billion in cash and a relatively low debt-to-equity ratio of 0.43.

By Reuters

Klang Valley property expo kicks off today

The Real Estate and Housing Developers' Association Malaysia (Rehda) will team up with its Federal Territory and Selangor chapters to organise the second Klang Valley Malaysian Property Exhibition (Mapex) 2009 in Kuala Lumpur from today to Sunday.

Themed “Go Green”, the event is expected to provide a platform for property developers to market their green projects as well as encourage them to design and construct green, sustainable buildings.

By Business Times

Genting's Sentosa casino gears for opening

By early 2010, a good 60-70 per cent of the new casino resort in Singapore will be opened to receive guests

Genting Bhd's new casino resort in Singapore will start receiving guests in two-thirds of the facilities by early next year, including Southeast Asia's first Universal Studio theme park and the casino.

It is aiming for 60 per cent overseas visitors, most of whom will come from Malaysia. Other key target markets are China, India, Indonesia and Thailand.

An estimated 12 million to 13 million visitors are expected to arrive in the first year at the resort on Sentosa Island, a stone's throw from the harbourfront Vivocity shopping mall.

"By early 2010, a good 60-70 per cent will be opened. We are talking about the Universal Studio, four hotels, part of Festive Walk, which is a dining and shopping area, and the casino," Robin Goh, assistant communications director of Resorts World at Sentosa Pte Ltd, told Business Times in an interview in Kuala Lumpur yesterday.
"We would love to (open by Chinese New Year), but we don't have the date yet," he said.

The rest of the project, including the Oceanarium and two more hotels, will be ready in the following months.

The company is ramping up publicity and marketing efforts to prepare for ticket sales which will start towards the year-end. As a prelude to the opening, a charity concert will be staged within the resort in December, Goh said.

Both the integrated resorts in Singapore are expected to open in the first three months of next year.

Analysts are speculating that Resorts World, which started construction later, may be the first to open after Marina Bay Sands encountered some delays.

Marina Bay Sands will probably open in either January or February, its executive director of sales Paul Stocker told Business Times separately.

Analysts believe that the two resorts will strive to start operations before Chinese New Year, which falls on Valentine's Day next year, to capture the peak period for the casino.

Goh said that Resorts World had yet to decide the ticket price for the theme park or the hotel room rates, but was "mindful" of its pricing strategy to attract the crucial Malaysian crowd.

It will probably bundle hotel stays with entrance fees, apart from the day ticket, two-day pass and annual pass.

"What is important is that Malaysian families must be able to see value for money in our theme park.

"The proposition is that this will be the nearest Universal Studio among the four parks in the world, and it is a world-class facility and not a watered-down version."

There will be 24 rides in Singapore's Universal Studio compared with around 21 for the other destinations in Osaka, Japan, and Orlando and Los Angeles in the US.

Eighteen of the rides are built exclusively for the park in Singapore, Goh said.

Among the highlights, a new Transformers ride will debut in Singapore, replacing the popular Spiderman three-dimension thrill ride which is already in all the three existing parks.

By Business Times (by Chong Pooi Koon)

LBS banks on new launches

Datuk Lim Hock San in front of a show unit of Topaz II

KUALA LANGAT: LBS Bina Group Bhd is optimistic of achieving its property sales target of RM250mil this year, driven by overwhelming buyer response for its new launches.

Managing director Datuk Lim Hock San said the company’s recent launches such as Iris Garden and Ruby Garden in Bandar Saujana Putra saw the units offered snapped up within two months.

“Topaz II, the latest property offered in Bandar Saujana Putra, was also 20% taken up when we did the soft launch last weekend.

“With current sales at RM135mil, we believe we can achieve our target this year,” he said yesterday at the official launch of 67-unit Topaz II in Bandar Saujana Putra.

Lim said the company would continue to build affordable homes priced from RM150,000 to RM180,000 in Bandar Saujana Putra as it believed there was still strong demand from this market.

“However, demand remains selective, so a development’s strong take-up rate is largely dependent on location, price and quality of the project,” he said.

Topaz II comprises double-storey link-houses priced from RM179,000 to RM244,300.

Lim said LBS would this year launch more properties in Bandar Saujana Putra apart from other new developments in Taman Tasik Puchong, Batu Pahat and Cameron Highlands.

“The new properties we will launch later this year include Topaz II phase two, consisting of 156 double-storey link-houses with a gross development value (GDV) of RM31.3mil, and 218 semi-detached single-storey homes in Batu Pahat priced at RM188,000 with GDV of RM40mil,” he said.

He believed the property market would pick up by year-end, boosted by the stimulus packages and the support from banks that currently offered low interest rates.

LBS is extending its “LBS Hassle-Free Home Ownership Programme” where buyers only need to pay as low as RM1,000 upon signing the sales and purchase agreement. It is also giving free furniture to purchasers of Topaz II.

To date, LBS has completed 4,800 residential and commercial units at Bandar Saujana Putra, located along the Elite Highway, with total GDV of about RM500mil.

By The Star

Resort city to drive tourism in Kuantan

KUANTAN: Bukit Gambang Resort City, a RM1bil project undertaken by Sentoria Development Sdn Bhd, is expected to spearhead the growth of the tourism industry in Kuantan town when completed in 10 years.

Datuk Gan Kim Leong (left) at the launch. Also present is Mentri Besar Datuk Seri Adnan Yaakob (right)

Sentoria executive director Datuk Gan Kim Leong said the first phase, costing some RM140mil, had been completed.

Gan said RM100mil was spent to construct the Carribean Bay suites consisting of 578 studio, deluxe and family suites complete with a clubhouse, gymnasium, jacuzzi, infinity pool, steam room and meeting, incentive, convention and exhibition facilities.

“The water park cost RM40mil and is divided into four main components – Coco Beach, Penguin Island, Tree Top Hill Slides and Garden Terrace.

“Our target is (to attract) 500,000 local and foreign visitors in the first year of operations,” he said after the official opening of the water park by Pahang Mentri Besar Datuk Seri Adnan Yaakob last Tuesday.

Gan added that safety and security features were among the group’s main priorities and the water park and hotel had created 300 job opportunities for the locals.

“I believe the idea of a water park in the east coast is workable as people still need some form of entertainment despite the trying times.

“Our concept is nature-friendly and leans towards family-oriented activities,” he said.

He said the first phase included an active academy centre which would provide team-building facilities such as a 18-part obstacle course and high rope challenges, mini zoo, paintball and jungle trekking activities.

“At least, half the components in the water park were made locally while the remaining 50% were imported from the West.

“Among the suppliers for fibreglass structures and water pumps were renowned firms from Canada, Scotland and Australia, which conform to international standards,” he said.

Gan said the second and third phases would comprise the adventure park, forest park, east coast bazaar, global heritage and heritage square.

“In the later stages, the public can look forward to themed accommodation namely Andaman Bay, Arabian Bay, Mediterranean Beach and Hawaiian Beach,” he said, adding that the integrated city would be the “gateway to Kuantan and east coast states.”

Gan said despite the global economic slowdown, Sentoria was not hard hit as its other properties such as housing and mixed-development projects were still doing well.

He said early this year, it had completed and launched its 108-room budget hotel in Taman Indera Sempurna, which was opened to the public in March.

By The Star (by Simon Khoo)

Mah Sing receives CNBC 5-star achievement award

Mah Sing Group Bhd became the only Malaysian property developer to receive a five-star award in the commercial category from CNBC Asia-Pacific Property Awards 2009.

This is the highest level of achievement awarded by CNBC Asia-Pacific Property Awards 2009 to the property industry in Asia.

Its Southgate commercial development in Kuala Lumpur was awarded five stars for Best Development in Malaysia. It comprises five blocks of retail units and offices surrounding a covered boulevard.

Its 315-acre township project called Aman Perdana in Meru-Shah Alam, Selangor, was also awarded four stars for Best Mixed Use Development in Malaysia. The project involves over 2,000 units of semi-detached homes, bungalows and community shops.

By Business Times

HK's property market sees good sales, low rental values

KUALA LUMPUR: The Hong Kong property market is being pulled into two directions. On one hand, sales are rising but leases are on a downward trend. According to Colliers International Hong Kong 2Q 2009 property report, the general market mood is still conservative but investors are snapping up properties to ensure they are in good position to reap the benefits when the global economy recovers.

OFFICE SPACE

Due to ample liquidity and with near zero interest rates, real estate purchasers, including a number of local private investors, have entered the market in anticipation of a global economic recovery in 4Q2009 to achieve capital gains, said the report.

As a result, prices increased in 2Q. For example, the average asking price for strata-titled office buildings in Admiralty rose to between HK$10,000 to HK$13,000 psf compared with between HK$8,000 to HK$9,000 psf in the previous quarter.

Rental, on the other hand, have gone down, with tenants preferring to play it safe with downgrades to less expensive offices or second-tier buildings. The vacancy rate across the various business districts increased 0.43% from 7.43% in February to 7.89% in 2Q2009.

Overall, Colliers predicted that Grade A office rentals will see a further slide of 15% over the next 12 months unless there is a change in the economic climate.

RESIDENTIAL

The luxury residential sector also saw an increase in sales in 2Q09 thanks to the low mortgage rates of as low as 1% per annum based on certain conditions making investment buying attractive. The number of sales in the three traditional luxury residential districts of The Peak, Mid-levels and South Side all saw a leap of more then 100%.

On the leasing front, however, the market is weak, no thanks to the low occupational demand for luxury units by multinational companies' employees. A number of tenants have opted for cheaper areas due to tightening purse strings.

Colliers said luxury residential capital values should rise by 5% over the next 12 months, although rentals are likely to edge down 3% during the same period.

INDUSTRIAL

Transactions in the industrial sector rose 129% quarter-on-quarter from 393 in March 2009, the lowest level since 1999, to 900 in May 2009. The most active areas were industrial districts of Kwai Chung/Tsuen Wan and Kowloon East.

There was a rather subdued feeling in terms of leasing due to the global recession. Although individual warehouses are taking advantage of the market downturn to upgrade their premises to be in prime position when the economy recovers, tenants remain cautious when it comes to rental expenses. As a result, industrial rentals are expected to fall by 5% to 15% over the next 12 months.

RETAIL

The drop in tourist numbers, the A(HINI) flu pandemic situation and the global slowdown has resulted in a downward trend in rents of retail property. The average retail rent in the four traditional shopping districts of Central Causeway Bay, Mong Kok and Tsim Sha Tsui showed a decrease of 4.7% quarter-on-quarter in 2Q2009, compared to the fall of 3.1% quarter-on-quarter in Q12009.

Nonetheless, Colliers predicted that rentals will decline further by another 12% over the next 12 months.

However, investment buying has grown thanks to increased capital inflow and more relaxed lending policies by local banks. The number of major transactions with lump sum considerations of HK$10 million or above increased by 70% quarter-on-quarter.

By The EDGE Malaysia (by Wong King Wai)

Mudajaya wins RM75mil job

PETALING JAYA: Mudajaya Group Bhd’s wholly-owned unit Mudajaya Corp Bhd has been awarded a contract for the construction of a hospital in Pahang for RM75.39mil.

In a filing with Bursa Malaysia, Mudajaya said the contract was awarded by Mudajaya-Takdzim Joint Venture, which was awarded the project by Takdzim PMC Sdn Bhd.

“The project is expected to contribute positively to the future earnings and net assets of the company,” it said.

The project is expected to be completed by Jan 31, 2012.

By The Star

Harp Soon to build integrated resort in Malacca

PRIVATELY-HELD construction and property firm Harp Soon Construction Bhd plans to develop a 8.72ha integrated resort in Malacca, with the help of Crystal Crown Hotel & Resort Group.

The resort, to be named Bayou Lagoon Park Resort, will be a mixed development comprising a hotel, retail centre, four blocks of service apartments, a water park, convention hall and a club house.

The resort will be developed in stages, with the completion of two of its serviced apartment blocks by early 2012.

The entire serviced apartment development has a gross development value of RM250 million.

The water park, which will be exclusive for guests and residents of the resort, will be ready by the time the apartments are up, and has a gross development value of RM8 million.

The convention hall, club house and hotel, meanwhile, are to developed later.

Bayou Lagoon Park Resort Sdn Bhd executive director Marco Seow said the development is the company's first foray into integrated resort development after developing residential and commercial developments in the Klang Valley for the last 30 years.

"This is why we brought in Crystal Crown, which has experience in the planning, development and management of hospitality project, as a consultant for the project," Seow said.

Crystal Crown and the manager of the resort, Bayou Lagoon Park Resort Sdn Bhd, entered into a distinctive partnership yesterday.

Under the pact, Bayou Lagoon will be a member of the Crystal Crown Group, allowing it to leverage on the established brand name as well as be accorded technical and feasibility advice on layout and hotel system solution.

By Business Times (by Presenna Nambiar)

invest Penang GM tipped to head PDC Properties

INVESTPENANG general manager Wan Zailena Noordin is tipped to replace Osman Kallahan as the next head of PDC Properties Sdn Bhd, the property development arm of Penang Development Corp (PDC).

It is understood that chief executive officer (CEO) Osman's contract, which ends this month, has not been renewed.

Sources told Business Times that Wan Zailena is tipped to take over, but as managing director.

It is not known if Wan Zailena will relinquish her post at investPenang, where she had served as CEO and then resigned. She rejoined investPenang as its general manager last year.

Osman has more than a decade of property development experience under his belt when he was hired to helm the company during its inception.

Incorporated in 2005 as a private limited company and wholly-owned by corporation, PDC Properties has been actively playing the role of a major property developer of high-end properties to low-cost housing, condominiums, offices and shop lots.

On Penang island, its projects include the sea-fronting Bayan Mutiara, Ixora Heights and Halaman Kenanga at Sungai Nibong.

PDC Properties' Bandar Cassia development at Batu Kawan on the mainland is strategically located close to the landing point of the second Penang bridge.

A restructuring exercise at the PDC in 2004 saw the emergence of PDC Properties, which is understood to be making higher profits.

In April this year, PDC appointed former banker Julian Candiah as its deputy general manager, in a bid to help Penang woo more investors to its shores.

By Business Times (by Marina Emmanuel)

Bandar Raya unit to buy stake in Oman firm

PETALING JAYA: Bandar Raya Developments Bhd’s wholly-owned subsidiary BRDB (Oman) Ltd has entered into an agreement for the proposed development of an integrated real estate tourism project on about 40ha in Oman through Amouage Hotels & Resorts LLC, Oman.

In a filing with Bursa Malaysia, Bandar Raya said BRDB would acquire 30% stake in Amouage from its shareholders, Mamas Loizou Ioanou Christodoulides and Mohammed Saleh Bin Eid Al Khaldi, for RM423,000 cash.

“Subject to the relevant approvals in Oman, the project will comprise residential and commercial units, hotel and other facilities,” it said.

The acquisition is in line with Bandar Raya group’s intention for new property development projects locally and overseas to enhance its earning base.

“The proposed joint venture represents an opportunity for the group to expand to and take advantage of the fast growing economies of Oman and the Gulf Cooperation Council countries,” it added.

By The Star

US housing market stabilising but consumers lack confidence

NEW YORK: US home prices rose in May for the first time in three years, suggesting the housing market is stabilising, but a weakening job market hit consumer confidence in July and could prevent near-term economic recovery.

Potential home buyers afraid of committing to a fast depreciating asset have been clamouring for such signs of house price stabilisation. But rising unemployment and wage cuts are straining consumer optimism and keeping many potential buyers out of the housing market, impeding spending and prospects for economic rebound.

"People are getting a bit discouraged. Jobs are not coming as quickly as expected," said John Silvia, chief economist at Wells Fargo in Charlotte, North Carolina. "This won't be a V-shaped recovery for either the economy or the jobs market."

Home prices have plunged more than 32 per cent on average from their 2006 peaks, but the pace of the annual declines slowed in May for the fourth straight month, according to Standard & Poor's/Case Shiller home price indices yesterday.

"This could be an indication that home price declines are finally stabilising" after tumbling to 2003 levels, David M. Blitzer, chairman of the index committee at S&P, said in a statement.

The index of 20 metropolitan areas rose 0.5 per cent in May from April, after a 0.6 per cent drop the month before, in contrast with the 0.5 per cent drop forecast in a Reuters poll.

"The pressures are all working in alignment to support that we're at the turning point" in the worst housing market since the Great Depression, said Steve Hagenbuckle, managing principle for TerraCap Partners, a distressed real estate private equity fund in Cape Coral, Florida.

"Affordability is at all time highs, inventories are shrinking, there's competition for properties, and we're not building as much new product to compete with the existing homes," he said.

Still, caution is warranted as long as the US unemployment rate keeps rising, economists advised. That rate is at its highest in nearly 26 years and is headed to double-digit levels.

For a rebound, consumer confidence needs to improve, foreclosures need to start falling from their record pace and potential buyers need to have a sense that it won't be even cheaper to purchase if they keep waiting.

Consumer confidence, however, fell more than expected this month because of the worsening job market.

The US Conference Board's index of consumer sentiment fell to 46.6 in July from 49.3 in June, according to data published yesterday. A reading of 49 was forecast in a Reuters survey.

The eroding sentiment came as Americans saying jobs are hard to get increased and those who thought jobs were plentiful fell to its lowest in more than a quarter century.

"Consumers are feeling no love in this recovery," said Boris Schlossberg, director of foreign exchange research at GFT in New York. "Consumers are still concerned about the labor market and their own security."

By Reuters

Survey: Dubai hotels hit hardest in region in first half

DUBAI: Dubai hotels saw the biggest falls in revenue in the region in the first half of 2009, according to a survey of key Middle East cities published yesterday.

Hotels in 22 cities in the region witnessed an average 10.9 per cent decrease in occupancies and a 17.2 per cent drop in revenue per available room (RevPAR), an industry benchmark, said a report by US hospitality research firm STR Global and Deloitte & Touche Middle East.

Occupancy rates in Dubai, the region's trade and tourism hub, fell 12.9 per cent compared to the year-earlier period, and RevPAR plunged 35 per cent.

Dubai, which attracts hundreds of thousands of tourists to its beaches and luxury hotels, predominantly from Europe and Russia, continued to suffer as the global financial crisis bit into the spending power of those countries.

Hotels in Oman's capital Muscat were among those badly hit as they experience "high seasonality in occupancies and revenues". Occupancies were down 21.7 per cent and RevPAR 16.6 per cent in the first six months of the year.

Lebanon's main tourism destination, Beirut, remained the top performer in the period, as it enjoyed "increased political stability". Beirut's occupancy levels soared 69.4 per cent and RevPAR surged 125.2 per cent, due to a significant inflow of tourists, the survey said.

By Reuters

China building materials expo from Oct 20 to 24

The China-Asean Expo (CAEXPO), which showcases Chinese building materials and processing machinery that caters to the Malaysian market, will be held for the sixth time in Nanning, China, from October 20 to 24.

CAEXPO secretariat said there will be more Chinese brand enterprises joining this year’s show The Chinese Ministry of Commerce of China has listed CAEXPO as one of the four major trade fairs in China under its direct guidance

By Business Times

Naza TTDI looks for land to undertake niche projects

NAZA TTDI Sdn Bhd says the 202.34ha it has in the Klang Valley has a total of about RM8 billion in gross development value (GDV) and is looking to increase its landbank to undertake more niche projects.

Naza TTDI also expects its latest upmarket project launched in Ampang on Saturday to rake in RM360 million in GDV.

The project joins other niche developments by Naza TTDI such as the RM4 billion Platinum Park at the Kuala Lumpur City Centre, Laman Seri in Shah Alam and TTDI Plaza in Taman Tun Dr Ismail.

"Our landbank is small. We have plots of land in Taman Tun Dr Ismail in Kuala Lumpur and Shah Alam, among others. We want to buy more in the Klang Valley," managing director SM Faliq SM Nasimuddin said at the launch of The Valley TTDI, Ampang.

The Valley TTDI, which boasts units priced from RM2.67 million to RM5 million onwards each, has been warmly received. Half of the total 134 units of link villas and bungalows have been sold.

Faliq expects the sales rate to hit at least 80 per cent by year-end.

There are 66 units of seven-room link villas priced at RM2.67 million onwards and another 56 units of eight-room bungalows costing RM2.97 million onwards.

If the eight-room bungalows are not premium enough, there are 12 units of "exclusive" bungalows that cost over RM5 million each. Nine units had been snapped up, company officials said.

The "exclusive" bungalows sit on 7,000 sq ft each and have 10 rooms with internal lifts and a swimming pool, bringing the total built-up area to 8,412 sq ft.

The Valley TTDI itself is located on a 14.36ha site. It will also have a broadband-enabled central community centre and park amenities such as a jogging track, waterfront decks, meditation garden and spring water spa.

"The Valley TTDI was designed to personify living harmony with nature. Another unique selling point is its relative short distance to the Kuala Lumpur city centre," Faliq said.

The Valley TTDI is targeted for completion in July 2010.

By Business Times (by Zuraimi Abdullah)

DTZ: Klang Valley property market remains challenging

Conditions in the Klang Valley's property market remain challenging, according to a property market report from global estate agent DTZ.

DTZ said the office property sector faces downward pressure on rental and capital values due to weak demand and the new supply that will be completed in the next few years.

In the second half of the year, there is an impending supply of some 3.43 million sq ft in Kuala Lumpur.

DTZ said the downward trend may, however, be cushioned by the government's recent liberalisation on economic policies targeting the services and financial sectors.

"The relaxation in policies is expected to promote foreign direct investment, with more foreign interests in the commercial property sector specifically," it said in its DTZ Research Report, Malaysia Property Times Q2 2009, released yesterday.

Nevertheless, rents of prime office space in Q2 2009 remained unchanged at an average of RM6.14 per sq ft per month. This is attributed mainly to the fact that there was no new completion of office space in the city centre, and most of the prime office buildings were close to full occupancy at the time of review.

On the retail front, DTZ said there was no significant change in occupancy of existing shopping centres as at end Q2 2009, which remained at above 90 per cent.

But prospects for the retail property sector are expected to be weighed down by the continued contraction in the economy, which is forecast to recover only in the fourth quarter of this year.

"Rents in prime shopping centres remained stable as they are less vulnerable to the economic slowdown.

"However, new and upcoming centres that are currently under construction are expected to experience downward pressure in targeted rents in their efforts to build occupancy up to a higher level," it said.

"With the oversupply of retail malls in the market, it will be a testing time for shopping malls, especially those in the secondary area with poor population catchments," it added.

Meanwhile, the residential property sector would be challenging over the next six months as any improvement in the economic situation is not expected until the fourth quarter of this year.

"Prices continued to undergo corrections and are expected to continue softening in the short term in view of impending new supply and weak economic conditions," it said.

Generally, prices of high-end condominiums in the Kuala Lumpur City Centre (KLCC) area have dropped by 20 per cent year-on-year.

Average rents of high-end condominiums in the KLCC area increased by 6.5 per cent quarter-on-quarter to RM4.08 per sq ft per month.

However, the rental market is expected to face downward pressure as a result of incoming massive supply of condominium units in and outside the city centre during the second half of this year and towards the early part of 2010.

DTZ said on a positive note, the recently announced overhaul in economic policies, particularly on the repeal of the foreign investment committee's approval for property transactions involving foreigners, would boost interest from foreigners in the local property market, specifically on the high-end residential segment.

In terms of selling and buying of commercial properties on the market, DTZ revealed that there were only two major transactions in the second quarter, of which one is between related parties.

"There are still some investors out in the market looking for commercial properties with investment value.

"Over the next six months, sentiment is likely to recover with some investment activities by opportunistic funds but this will be selective and driven by value hunting," it added.

By Business Times

UM Land expects RM1.2bil from mixed development project

JOHOR BARU: UM Land Bhd expects to generate RM1.2bil in gross development value from its ongoing mixed property development project Taman Seri Austin near here.

The 202.34ha project was launched in July 2005 and is being developed by UM Land wholly owned unit Dynasty View Sdn Bhd.

Wong Kuen Kong (right) says the project will keep the company busy for the next eight years. With him is Datuk Abdul Halim Suleiman.

Dynasty View general manager Wong Kuen Kong said the project would keep the company busy for the next eight years.

Todate, 25% of Taman Seri Austin has been developed with 1,300 units of residential and commercial properties, of which 90% had been sold.

“Upon completion, the scheme will have 5,700 property units and 30,000 residents,” Wong told StarBiz at the launch of 122 double-storey terrace houses on Sunday by Puteri Wangsa assemblyman Datuk Abdul Halim Suleiman.

The four-bedroom four-bathroom Deanna II units with a built-up area of 180.88 sq m in a gated and guarded precinct are priced from RM300,048 to RM552,472 each.

Wong said although the property market was experiencing a slowdown due to the current economic downturn, demand for houses priced from RM250,000 and above in Johor Baru was still encouraging.

Wong said the company always believed that despite the bad times, there were still potential buyers willing to pay more for the medium-high and high-end properties.

“Another trend is that customers will only ink the sale and purchase agreement when they see the houses reaching 50% completion,” he said.

Wong said when the RM997mil Eastern Dispersal Link Expressway (EDL) was completed by end-2011, it would take only 15 minutes to travel from the Johor Baru city centre to Taman Seri Austin from the current 30 minutes.

EDL will link the Sultan Iskandar Customs, Immigration and Quarantine Complex at Bukit Chagar and the North South Expressway via the Pandan Interchange.

Wong said the surrounding amenities such as 36-hole golf and country resort, shopping mall, hypermarkets, education facilities and a public hospital were other selling points of the project.

By The Star (by Zazali Musa)

TA to buy firm with 4-star hotel in Singapore

PETALING JAYA: TA Enterprise Bhd has proposed to purchase the entire issued shares of Mauritius company Quayside Gem Ltd, which owns Merchant Quay Pte Ltd of Singapore.

Merchant Quay is the owner of the 4-star hotel Swissotel Merchant Court Singapore.

In a filing with Bursa Malaysia, the company said it had entered into a memorandum of agreement with LaSalle Asia Opportunity II SARL of Centre de Paris to purchase the entire issued shares of Quayside.

TA said the purchase would be financed through internally generated funds and external borrowings.

TA had paid an earnest deposit of S$5mil, according to the agreement.The company expected to enter into a sale and purchase agreement with LaSalle Asia by Aug 25.

The total transaction value for the acquisition was not mentioned in the statement.

The company had last December acquired the property and business known as The Westin Melbourne in Australia for RM389.12mil from RPHT Pty Ltd and RPHT Operations Pty Ltd.

TA registered a net profit of RM30.5mil for the first quarter ended April 30.

Its revenue dropped 38.1% to RM72mil from RM116.4mil previously.

By The Star

GenCorp on track to complete S’pore hotel by 1Q10

KUALA LUMPUR: GENERAL CORPORATION BHD (GenCorp) is on track to complete the Hard Rock Hotel in Singapore, which is part of the Sentosa integrated hotel and casino resort, by the first quarter of next year.

GenCorp executive director Datuk Marco Low said despite the weak global economic conditions, “the owners of the project continue to support the project and are sticking to the date of completion”.

GenCorp subsidiary Low Keng Huat (Singapore) Ltd was awarded the S$346 million (RM845.73 million) hotel construction contract in April last year by Resorts World at Sentosa Pte Ltd, a member of Genting International Group.

Then the expected completion date for the hotel was by December 2009, but that has since been changed to completion in two phases with phase, one by December 2009 and phase two within the first quarter of 2010.

Earlier this month, another casino owner, the Las Vegas Sands group announced the delay in the opening of its US$5.5 billion (RM19.41 billion) Marina Bay Sands hotel and casino resort in Singapore to January or February 2010 from December this year.

GenCorp’s other construction project announced at the same time as the The Hard Rock project, the S$146 million construction contract on the additions and alterations to the retail and hotel podium of the Meritus Mandarin Hotel at 333 Orchard Road is expected to be completed by the end of the year.

The group, which derived 71.8% of its consolidated revenue of RM766 million for its financial year ended Jan 31, 2009 (FY09) from its Singapore operations, is also working on the S$295 million Serangoon Central Mall to be completed by end-2010.

GenCorp, which posted a RM64.93 million net profit in FY09, expects “earnings to be sustained” in the current financial year, said its executive director Michael Chong.

He said its 33-storey Panorama freehold luxury condominium project here had seen a 90% take-up rate since its launch in April last year. Construction on the project has started and it will contribute to earnings this year.

The Panorama, located near the Corus Hotel, is worth about RM300 million in gross development value and scheduled for completion by end-2010.

Malaysian operations are the second-highest contributor to group revenue, after Singapore, making up about 15% in FY09.

Going forward, the group plans to develop a 1.6ha (3.95-acre) freehold site in Jalan Conlay here for high-end condominiums.

Ongoing projects in Malaysia are the 25-unit “zero lot” bungalows at Taman Esplanad, Bukit Jalil, and 12 semi-detached luxury residences in Jalan U-Thant.

The group, which does not have any major landbank in Singapore, undertakes property development in the republic on a joint-venture basis. Its projects include One-North Residences and South Bank.

By The EDGE Malaysia (by Loong Tse Min)

Aliran Perkasa to buy land

Property developer Metro Kajang Holdings Bhd’ subsidiary Aliran Perkasa Sdn Bhd, plans to buy a 45.4ha plot of land in Semenyih, Selangor, from Bandar Centre Development Sdn Bhd for RM34 million.

The group will jointly develop the land with another 8ha land it owns next to it.

By Business Times