UEM head is construction industry's 'Prominent Player'

UEM World Bhd's chairman Tan Sri Ahmad Tajuddin Ali clinched the "Prominent Player Award" at the Malaysia Construction Industry Excellence Awards (MCIEA) 2009.

The event, organised by the Construction Industry Development Board (CIDB), is an annual affair. Now in its 10th year, the award recognises individuals and companies that have excelled in the construction industry.

IJM Construction Sdn Bhd was named "Contractor of the Year" for its work on Menara Bumiputra-Commerce in Jalan Raja Laut, Kuala Lumpur.

Trans Resources Corp Sdn Bhd's Datuk Sri Sufri Mohd Zain, meanwhile, was the recipient of the "CEO of the Year" award.
Works Minister Datuk Shaziman Abu Mansor presented the winners with their certificates and trophies at the ceremony held at the CIDB Convention Centre in Kuala Lumpur on Wednesday.

Thirteen recipients were honoured that day.

The winner of the "Environmental Best Practices Award" went to Tanjung Mahsuri Sdn Bhd, while the "IBS Award" went to Spaz Sdn Bhd.

The "Contractor Grade 1" award winner was Double R Enterprise, while the Grade 3 award winner was Gabungan Perintis Sdn Bhd, and Grade 4, Gilap Kualiti Enterprise.

The "Contractor Grade 5" award went to HNA Terus Maju Holdings Sdn Bhd, while the Grade 6 and Grade 7 awards were given out to NKR Continental (M) Sdn Bhd and Sunway Construction Sdn Bhd, respectively.

The "International Achievement Award" winner was Persys Sdn Bhd, for the work it did in improving Saudi Arabia's Jamarat Bridge and its surrounding area in Mina.

CIDB said the MCIEA served as a platform to create healthy competition among industry players in adopting best practices in the implementation of projects.

By Business Times

Agents: No impact on prices of properties in KLCC area

KUWAIT Finance House (Malaysia) Bhd's (KFHMB) move to not proceed with the purchase of the RM920 million Menara YNH in Kuala Lumpur will not have any impact on prices of properties in the area, say real estate agents.

They said prices of land and commercial buildings surrounding the Kuala Lumpur City Centre (KLCC) will stay firm in 2010.

YNH Property Bhd had on Tuesday said that it was notified by KFHMB of its intention not to proceed with plans to buy one wing of the office tower in Menara YNH on Jalan Sultan Ismail.

"KFHMB has been prudent in its investments and as an investor in Malaysia, it has been doing well," real estate agent Previndran Singhe of Zerin Properties said. He added that the local property market remains unaffected by KFHMB's move.

"It is realistic to say that people are cautiously optimistic. Land sales (in the KLCC area) have been in the RM1,900 to RM2,200 per sq ft range. For commercial properties, it is between RM800 and RM1,100 per sq ft. It is definitely holding and is likely to inch up next year," Previn told Business Times.

Recently Dijaya Corp Bhd said it was buying the land in Jalan Ampang, which houses the Bok House, for RM123 million or about RM2,200 per sq ft.

DTZ Nawawi Tie Leung Property Consultants deputy managing director Adzman Shah Mohd Ariffin said there has been no indications of distress sales in the KLCC area, due to limited land availability in the area.

"(Property) values there seem to be holding well for the time being," he added.

CB Re (Malaysia) Sdn Bhd (formerly Regroup Associates Sdn Bhd) managing director Allan Soo said the market remains unaffected by KFHMB's move not to buy Menara YNH, as indications were that there was never a deal between the two in the first place.

He expects prices of land in the KLCC area will continue to rise, but the same can't be said for commercial properties with the opening of GTower and The Icon on Jalan Tun Razak which could put pressure on rent.

"Sales of office blocks may be just below RM1,000 per square foot," Soo said.

He added that land prices will continue to rise due to scarcity of prime land in Kuala Lumpur.

By Business Times (by Vasantha Ganesan)

KFH: ‘No legally binding’ pact to buy YNH's RM920mil property

PETALING JAYA: Kuwait Finance House (M) Bhd (KFH) has refuted YNH Property Bhd’s claim that it is in a legally binding agreement with the latter and can be made liable for backing out of a deal to purchase Menara YNH, a 45-storey office tower worth RM920mil.

In a statement yesterday, KFH said there was “no legally binding agreement” with the Ipoh-based developer because neither party had committed to signing a sale and purchase agreement.

“A conditional letter of offer was executed between KFH and YNH but the sale and purchase agreement was not executed as the conditions stipulated in the conditional letter of offer which included the necessary approvals from KFH’s board of directors, shareholders and/or committees were not obtained,” it said.

It added that both parties had had “several discussions and meetings thereafter” to agree on a revised structure so as to meet the those conditions.

“As both parties were unable to agree on a revised structure and terms of the sale, KFH has decided not to proceed with the purchase of the said Menara YNH.

“We may review our decision in the future, should we be able to find a viable structure to enable us to participate in the sale transaction,” KFH said.

KFH had offered to buy a 50% interest in YNH Land Sdn Bhd’s Menara YNH early last year. YNH Land is a unit of Kar Sin Bhd, which in turn is a wholly owned subsidiary of YNH Property.

YNH told Bursa Malaysia on Tuesday that it had been notified in writing by KFH that the latter would no longer be proceeding with the formalisation of the sale and purchase agreement.

In the same note to Bursa, YNH said it was seeking legal advice on the matter.

“As such, the board will consult our legal advisers on all of the options available to our group, including but not limited to specific performance and/or seeking damages from KFH,’’ YNH said.

Meanwhile, analysts expect the YNH-KFH deal to fall through but it would not have any impact on YNH’s earnings.

ECMLibra Investment Research said in a note that the news was “not surprising”.

“The partial sale of Menara YNH had been widely expected to fall through following long and protracted negotiations since the offer letter was signed on Jan 11, 2008.

“Nevertheless, the positive thing we can see from this turn of events is that the uncertainty of the sale to KFH has finally been drawn to a close,” it said.

The research house said it was making no revision to its earnings estimate as it had already disregarded the earnings contribution from the sale to YNH.

RHB Research in its report said the deal falling through was “not a surprise to us”, and added that it was not revising its earnings forecast for the developer.

An analyst said YNH would have no problem finding another buyer for the tower, albeit at a lower selling price than the RM920mil KFH had agreed to.

Menara YNH, which is yet to be built, will be located in Jalan Sultan Ismail, Kuala Lumpur. Selling prices in the area have nosedived 20% to 25% since the offer by KFH.

“The economy is already improving but we expect flattish growth for the property sector in 2010. It would take a while for property prices to match the levels they were at in the last quarter of 2008,” an analyst said.

Zerin Properties chief executive officer Previndran Singhe concurred that YNH would have no problem finding a buyer for Menara YNH, adding that prices of properties within the area were showing signs of improvement.

“Property prices may reach last year’s levels by end-2010. But by 2011, there should be no problem for YNH to sell at a higher price (than what was offered by KFH),” he said.

By The Star (by Eugene Mahalingam)

No legally binding pact with YNH: KFH

KUWAIT Finance House (M) Bhd (KFHMB) said it does not have a legally binding agreement to buy a building from YNH Property Bhd.

The Islamic bank has abandoned plans to buy half of Menara YNH on Jalan Sultan Ismail, Kuala Lumpur, for RM920 million and YNH said it would seek legal advice and claim damages.

KFHMB was responding to media reports on KFHMB decision not to go ahead with the RM920 million en bloc purchase of Menara YNH on Jalan Sultan Ismail, Kuala Lumpur.

"A conditional letter of offer was executed between KFHMB and YNH but the sale and purchase agreement was not executed as the condition letter of offer which amongst others includes the necessary approvals from KFHMB's board of directors, shareholders and/or committee were not obtained," KFHMB said in a statement yesterday.
It added that the parties had several talks and meetings on a revised structure to meet approvals and other conditions in the letter.

"As both parties were unable to agree on a revised structure and the terms of the sale, KFHMB has decided not to proceed with the purchase of the said Menara YNH," it added.

By Business Times

Lebar Daun to launch new phases worth RM500mil

SHAH ALAM: Property developer Lebar Daun Development Sdn Bhd will next year launch at its various projects a total 14 new phases with a total gross development value (GDV) of RM500mil.

Eight new phases would be unveiled at the upmarket D’Kayangan mixed development and five at Bukit Bandaraya Shah Alam, located at Section 13 and Section 8 in Shah Alam respectively.

Executive director Noorazhar Mohamed Nurdin said these phases would comprise terrace houses, semi-detached units and bungalows, with a starting price of RM670,000.

“We have new and exciting products in the pipeline,” he told StarBiz yesterday, adding that Lebar Daun would be launching projects every month next year.

He said an ongoing residential development in Sri Kembangan would also have a new phase.

Even though the economy was still recovering, sales and marketing manager Arman Putera Asmuni said Lebar Daun would continue to launch new phases and not hold back.

“If we only launch when the economy improves, we will be at pace with our competitors. By continuing to launch, we will already have completed products (compared with other players) when the economy is good,” he said.

Work on D’Kayangan, which sits on 163 acres of leasehold land, started in 2005. To be developed in 13 phases, the project has a GDV of RM1.6bil and is slated for completion in 2015.

D’Kayangan will feature over 1,300 superlink homes, semi-detached houses, cluster homes and bungalows. About 40 acres have been dedicated to commercial development.

Its 300-acre Bukit Bandaraya Shah Alam project, to be developed in 15 phases, has a GDV of RM1.2bil.

Lebar Daun would also be launching a high-rise mixed development in Section 14, Shah Alam by the end of 2010 with a GDV of RM200mil.

By The Star (by Eugene Mahalingam)

Bank Islam eyes new role in developing wakaf land

Bank Islam Malaysia Bhd may indirectly become a property developer as it explores the prospect of developing wakaf land into property projects.

It is in talks with various Islamic religious and economic agencies, such as Yayasan Wakaf Malaysia, on developing wakaf land nationwide.

Group managing director Datuk Seri Zukri Samat said that instead of just providing the financing, the bank could also become joint project owner.

"We will play a key role in the development of wakaf land in the country. While being a lender, we may also go a step further to becoming joint project owner."

Zukri was speaking at a press conference after the opening of Bank Islam's 95th branch in Kota Damansara, Selangor, yesterday.
Bank Islam has already invested in its first wakaf land venture in Kuala Lumpur, although neither as a joint project owner nor a developer.

Instead, the bank will be the anchor tenant of a 34-storey building in the "Golden Triangle" now being developed by its parent, Lembaga Tabung Haji.

The pilgrimage fund, which owns 52 per cent of Bank Islam through the latter's holding company, BIMB Holdings Bhd, is developing the RM151 million building on 0.48ha of wakaf land.

The land belongs to the Federal Territory Religious Affairs Council.

Construction works on the land along Jalan Perak, off Jalan P. Ramlee, started in 2007 and the building itself is expected to be ready next year.

Meanwhile, Zukri said that Dubai Investment Group, which owns

about one-third of Bank Islam, may sell its stake if it receives a good offer. He declined to elaborate.

He also said that Bank Islam plans to open at least 10 more branches next year, which will swell its banking network to more than 100 branches.

The sites for six new branches have been identified and they include Alor Star in Kedah, Bukit Jelutong in Selangor and Sri Petaling, Kuala Lumpur. Each branch should cost around RM600,000 to set up.

Zukri was optimistic that Bank Islam would again achieve double-digit growth next year given the encouraging trend it has seen since last month.

The bank expects its deposits and lending to grow substantially next year.

Bank Islam will soon change its financial year-end to December 31 from June 30 to be in line with Tabung Haji's financial year.

By Business Times (by Zuraimi Abdullah)

Setia Haruman throws in perks for buyers of CBD Perdana 2 units

Investors looking for a blue chip commercial property to add to their portfolio can check out Setia Haruman Sdn Bhd's latest project, CBD Perdana 2 in Cyberjaya, Selangor.

Under the first phase, it had generated gross returns of about 10 per cent per year for its owners. CBD Perdana 2 promises to offer a similar competitive investment advantage and equally good returns.

In a statement, Setia Haruman said CBD Perdana 2 is based on an award-winning "Office Park" con-cept evolving around an architectural design that creates a "green and vibrant" work environment.

Expected to be completed by October 2011, CBD Perdana 2 is touted to be the new commercial highlight of Cyberjaya; offering signature retail space and corporate office units.

The built-up area of the units ranges from 2,2821,776 sq ft to 2,5733,121 sq ft.
Located within the central business district of Cyberjaya, CBD Perdana 2 enjoys a ready consumer catchment from the 900,000 population of Cyberjaya, Putrajaya, Kajang, Seri Kembangan, Puchong and Dengkil; accessibility via major highways; and comprehensive facilities in the neighbourhood such as an international school and three private established universities and colleges.

Setia Haruman, which is the master developer of Cyberjaya, said rental returns of CBD Perdana 2 are expected to be RM3 and above per sq ft.

For a limited time only, purchasers of CBD Perdana 2 units will get to enjoy various incentives under a flexible financial package offered at attractive interest rates; with zero progressive interest during construction.

By Business Times

KPJ in property deal

KPJ Healthcare Bhd (KPJ) has entered into a conditional sale and purchase agreement with Property Base Development Sdn Bhd to buy the seven-storey Maharani Specialist Hospital in Muar, Johor, for RM22 million.

The deal, signed by KPJ’s wholly-owned unit Maharani Specialist Hospital Sdn Bhd, includes the 6.9 million sq m of land which the hospital is sited on.

The Maharani Specialist Hospital building is partially completed and upon completion by the end of 2011, it will be a private specialist hospital.

The estimated further development cost on the property is RM26 million.

By Business Times

Bina Goodyear expects to be back in the black this fiscal year

Construction group Bina Goodyear Bhd (7023) expects to return to profitability in its current fiscal year, on increased construction work and contributions from its electronics division.

It has some RM500 million worth of contracts that will keep it busy for the next 12 months.

"We expect to return to the black in the current year ending June 30 2010, with a revenue of some RM350 million. These profits will come from our existing and new contracts," chairman Md Azar Ismail told Business Times after the group's shareholders meeting in Subang, Selangor, yesterday.

He said the group expects to win another contract within the next few months, which would boost its earnings. He declined to elaborate.
Bina Goodyear posted a net loss of RM24.24 million on revenue of RM333.8 million for the fiscal year ended June 30 2009.

Md Azar said it is bidding for a few building jobs in Putrajaya. He added that the group is positive on the outlook for 2010 due to tender invitations from the government and new property launches by private developers.

"We are focused on building construction works in the Klang Valley. But, if there's an opportunity to do projects in Johor's Iskandar region, we will consider, provided that the contract has substantial value," he said.

Bina Goodyear, via its 75.5 per cent unit TC Electronics Sdn Bhd, also makes automotive and home loud speakers. Md Azar said the business is improving.

TC Electronics is one of the key OEM car speaker suppliers for Proton and Perodua. It also supplies its products to international speaker manufacturers such as the JVC group and Alpine Group.

Meanwhile, Bina Goodyear senior general manager Lawrence Lau said the group is looking to re-activate its property development business. It had moved away from the division to focus on construction due to poor market sentiments.

Bina Goodyear recently sold its only parcel of land, measuring 8.6 acres, in Bandar Sri Damansara for RM27 million, to fund working capital and reduce debt to RM68 million.

"We are sourcing for land in the Klang Valley to build medium-cost buildings and medium- to high-end land properties in the near future," he said.

By Business Times (by Sharen Kaur)

Ho Hup in land sale

Ho Hup Construction Co Bhd’s 70 per cent subsidiary Bukit Jalil Development Sdn Bhd plans to sell 13,398 sq m of freehold land in Bandar Bukit Jalil for RM7.64 million to Action Master Sdn Bhd.

Proceeds will be used to repay borrowings and fund working capital.

Ho Hup will realise a gain of RM520,181 from the sale.

By Business Times

Resort-style residences

Covillea Bukit Jalil: With its prime locale and easy accessibility, Covillea represents an excellent investment or a primary home for both locals and expatriates.

Set in 400 acres of resort development is Covillea Bukit Jalil, a winning development in Bukit Jalil by Berjaya Golf Resort Bhd. Specially designed for growing families, the freehold condominium homes are built to suit today’s modern lifestyle needs.

Despite the prime address, the residential properties here do not come with a high price.

Covillea spans a total of 2.91 acres and is sited adjacent to the Bukit Jalil golf course. It comprises two 20-storey highrise blocks with a total of 308 units and a five-storey car park podium. All units have a panoramic view of the international standard 18-hole golf course with certain units having the added view of the swimming pool.

Covillea comes with condominium facilities and multiple security checkpoints. Even the infinity pool and the glass gym overlook the golf course. The two monorail stations, namely the Bukit Jalil station and the Sri Petaling (Star LRT) station are located within walking distance. And this development is easily accessible via major roads and highways. With the elevated Mex Expressway, the Kuala Lumpur International Airport is just a 20-minute drive away.

Basically, Covillea units come with three bedrooms plus a utility room. There are two layout designs with a spacious built-up of 120 sq m (1,293 sq ft) and 131sq m (1,415sq ft). Each unit is provided with two covered, car parking bays. For those who enjoy gardening, there are some units on the ground floor that come with extra land to create your own private garden. The units on the lower floor have a unique balcony with an eye-level view of the golf course or pool deck. And the full-height windows on the higher floors allow you to enjoy plenty of natural light and ventilation.

During the launch on Nov 21, the first 30 buyers of Covillea units were offered a rebate of RM10,000. Apart from the legal fees absorbed by the developer, Berjaya is also offering 0% interest* payment during construction - until Dec 31. Repayment starts only upon completion.

1 Petaling is designed with a modern and practical concept.

1 Petaling @ Sungai Besi
1 Petaling serves to be a rewarding investment for first-time homebuyers and young couples. This newly launched mixed-development project spans 1.66 acres of land and is close to established neighbourhoods like Sri Petaling, Bandar Tasik Selatan and Seri Kembangan. The project offers stylish condominium residences and dynamic retail environment to the thriving community of Sg Besi.

Housed in a 20-storey block comprising 250 units of condominium units, located on the fifth to the 20th floor, residential units comprise spacious “three-bedroom and two-bath room” units and “3 plus 1-bedroom and three-bathroom” units designed with a modern and practical concept.

The units come in five sizes from the smallest unit of 82sq m (884 sq ft) priced from RM180,935 to the 109sq m (1,171sq ft) units with 3+1 bedrooms priced from RM280,888. Several units even come with a courtyard garden, giving the feel of landed property living.

Complete with lush landscaping, 1 Petaling offers comprehensive facilities such as a swimming pool, wading pool, gymnasium overlooking a pool, reflexology path and a children’s playground. The development has been designed with a multi-tier security system with a video and CCTV network. Enhanced security features include card access to the lift lobby and car park as well as centralised SMATV which offer residents peace of mind.

Buyers of 1 Petaling homes are being offered:

• 0% interest payment during construction*
• up to 95% loan finance including Mortgage Reduce Term Assurance* (MRTA)
• zero entry-cost on the Sales and Purchase Agreement*
• low downpayment of RM3,000*
• 21 days interest-free EPF withdrawal*

In addition, there are interest-free instalment plans* for the initial 10% on the downpayment.

Hazel 2 comfort
The Hazel 2 terraced houses at Berjaya Park in Shah Alam, will delight first-time homeowners with its attractive features and minimal need for renovation. With only 87 units left, Hazel 2 offers freehold exclusivity on a development site that spans 7.53 acres.

The spacious built-up area ranges from 216sq m (2,320sq ft) to 254sq m (2,737sq ft), certainly a generous allocation for a terraced home. The homes offer four bedrooms with attached bathrooms and a spacious car porch, easily accommodating two parallel parked cars, making this landed property perfect for young executives, first-time homeowners and upgraders.

Construction of the project has already begun, even before the launch. Thus, buyers may enjoy vacant possession of their homes earlier than expected. To further benefit new homeowners, Berjaya and the bankers have agreed on a special arrangement whereby after the house key is handed over, the purchasers can enjoy 12 months of no-payment.

The current offers on purchasing Hazel 2 houses, include:

• instant rebate up to RM4,888*
• low downpayment of RM2,000*
• interest- free easy payment of up to 20%*
• 0% interest payment during construction*

The above respective promotion will end in December 2009. Terms and conditions apply.

For further information, kindly visit the Berjaya Property Gallery, Level 2 (West Wing), Berjaya Times Square, 1 Jalan Imbi, Kuala Lumpur Tel: 03-21428028, Fax: 03-21432028, Website:www.berjayaproperties.com, E-mail:property@berjaya.com.my

Or visit the respective sales office/show units:

Covillea Sales Office:
Bukit Jalil, Kuala Lumpur (beside Arena Green Apartments & opposite National Stadium Entrance)
Tel :018-2200828/018-2200121

1 Petaling Sales Office:
Jalan 1C/149, Off Jalan Sg Besi, KL.
Tel: 03-90571589/018-2208855/018-2200201

Hazel Sales Office:
Berjaya Park Hazel Show House, Jalan Kebun, Shah Alam
Tel : 018-2206068/018-2200076

By The Star

SKN Land plans developments worth RM450m

SKN Land & Development Sdn Bhd, a developer of high-end properties, plans to develop two property projects with a combined gross development value (GDV) of about RM450 million in Kuala Lumpur.

Chairman Mohd Rosly Hussein said one of the projects is a mixed development on a 1.2ha site in Desa Pandan and another is a residential development at Jalan Yap Kwan Seng.

The GDV for the Desa Pandan project is about RM350 million, while the other project has a RM100 million GDV.

"We have already submitted our plans to the Kuala Lumpur City Hall and are waiting for approvals," he told a news conference after the signing of partnership agreement between Asian Finance Bank Bhd and Crest Worldwide Resources Sdn Bhd (CRW) in KL yesterday.
CRW, a member company of SKN Land, is currently developing Crest Jalan Sultan Ismail - a mixed development comprising a 44-storey luxury residence tower and a 26-storey Grade A office tower with a GDV of RM500 million.

Mohd Rosly said the Desa Pandan project will be developed on a vacant land, while the company will demolish the existing building which houses the company's office at Yap Kwan Seng to make way for the residential project there.

SKN Land currently has a 2.8ha landbank in the city centre.

By Business Times

Asian Finance Bank courts foreign buyers for KL project

Asian Finance Bank Bhd (AFB) expects to attract investors from Asia, Australia and the Middle East for its RM500 million mixed development project called Crest Jalan Sultan Ismail in Kuala Lumpur.

Chief executive officer Datuk Mohamed Azahari Kamil expects to announce the results of roadshows held in Qatar, South Korea and Indonesia next month.

The roadshows will be extended to Singapore, Australia and the Philippines, while AFB's associate in London, European Finance House, will help market the property.

"A lot of investors are looking at Malaysia for long-term investments in commercial and residential properties. Demand is tremendous, especially for properties in the Golden Triangle area," he told reporters after the signing of a partnership agreement between AFB and Crest Worldwide Resources Sdn Bhd (CWR) in KL yesterday.
CRW, a member company of SKN Land and Development Sdn Bhd, has appointed AFB as the global marketing representative promoting Crest Jalan Sultan Ismail, as well as the end financier for the project.

The project, which is expected to be completed in 2011, features a 44-storey residential tower and a 26-storey office block spanning 0.28ha.

Out of the 288 Crest residential units, only 92 units are left for sale, while SKN Land plans to sell the Crest office tower en-bloc.

Mohamed Azahari said a few sovereign wealth funds are currently in talks with AFB's majority shareholder, Qatar Islamic Bank, to invest in the Crest office tower.

He added that AFB plans to grow its property loan portfolio, which is currently small. About two-thirds of the bank's loan portfolio is in trade financing.

After three years operating in Malaysia, AFB's funded assets have grown to RM1 billion, of which property comprises about one-fifth.

By Business Times (by Hamisah Hamid)

KFH backs out of buying Menara YNH for RM920mil

PETALING JAYA: YNH Property Bhd is seeking legal recourse against Kuwait Finance House (M) Bhd (KFH) for backing out of a commitment to buy a 45-storey office tower worth RM920mil.

YNH told Bursa Malaysia yesterday it had been notified by KFH in writing that the latter would “no longer be proceeding with the formalisation of the sale and purchase (S&P) agreement as per the terms and conditions of the offer letter dated Jan 11, 2008” for the en bloc purchase of Menara YNH, located along Jalan Sultan Ismail, Kuala Lumpur.

“As such, the board will consult our legal advisors on all of the options available to our group, including but not limited to specific performance and/or seeking damages from KFH,” YNH said.

A YNH spokesman told StarBiz the deal “went sour” because KFH wanted to purchase the property at a lower price than initially agreed.

“It was all an issue of pricing. The property market has softened by about 20% since we entered into the agreement nearly two years ago. KFH wanted to buy at a lower price while we wanted to maintain the original value,” he said.

“We’re not going to sell at a cheaper price because the location and yield in the area are good.”

The spokesman said YNH was seeking legal advice from its lawyers and was confident of a positive outcome.

“An option is to sell the property to the highest bidder and claim the difference from KFH. The agreement is legally binding,” he said.

He also said KFH’s decision to pull out of the deal would not have a negative impact on YNH.

“It’s not a problem as we can sell it to other parties. We have had a lot of interest in the tower.”

He said preliminary earthworks had commenced at the project site and actual construction was expected to begin in a few months.

YNH head of corporate services Daniel Chan was quoted in a news report in August that the deal with KFH “is basically firmed up” although the S&P agreement had yet to be signed.

“As far as we are concerned, the signing of documents is just a formality,” he said.

An analyst from a local bank-backed brokerage said that while the property market had softened, it should not have an impact on YNH.

“The economy is already on the upturn and property prices will also be on the uptrend. The yields in the area are also good and the company can always find other buyers,” he said.

KFH offered to purchase a 50% interest in YNH Land Sdn Bhd’s proposed 45-storey office tower in early 2008. YNH Land is a unit of Kar Sin Bhd, which in turn is a wholly-owned subsidiary of YNH Property.

In a previous note to Bursa, YNH said the office tower was located in the Golden Triangle area where “most prestigious five-star hotels and upmarket office spaces” were located, with easy accessibility and close proximity to efficient public transport facilities like the Putra light rail transport and KL monorail stations.

By The Star (by Eugene Mahalingam)

KFH pulls out of Malaysia property deal

The Malaysian unit of Kuwait Finance House has pulled out of a RM920 million (US$270 million) deal to buy part of an office tower from a local property developer.

Malaysia’s YNH Property Bhd told the stock exchange late on Tuesday that Kuwait Finance House Malaysia (KFHM) had informed it that it would not proceed with the purchase. YNH Property also said it may seek legal demages from the Islamic bank.

No reasons were given for the pullout. A KFHM spokesperson said a statement will be issued later in the day.

Valued at about 1.8 billion ringgit, the YNH tower was to be constructed in the Malaysian capital. YNH Property signed the deal with KFHB last year in January.
Malaysian rating agency RAM Ratings last month revised its outlook on the firm to negative from stable, citing a challenging operating environment in Kuwait that has pressured the credit fundamentals of its parent.

Kuwait Finance House has said that it is not exposed to the debt problems of Dubai state-ownd conglomerate Dubai World or its property unit Nakheel, which have undermined investor confidence and thrown a spotlight on weak commercial real estate markets worldwide.

By REUTERS

Mah Sing sells Apex Tower

Mah Sing Group Bhd is making an en bloc sale of a seven-storey retail office space known as Apex Tower in Sungai Besi, to one Chen Ho-Yean for RM63.09 million.

The sale of the building with 90,126 sq ft of net floor area, will enable Mah Sing Group to lock in a significant amount of property sales

By Business Times

KPJ to acquire RM22m land in Muar for partially completed hospital

KUALA LUMPUR: KPJ HEALTHCARE BHD, a hospital management group linked to the listed AL-AQAR KPJ REIT on Wednesday, Dec 16 announced plans to acquire a plot of freehold land in Muar, Johor for RM22 million in cash.

On the rationale of the deal, the company said: "The proposed acquisition is in line with KPJ group's objective to increase its network of hospitals to locations where private healthcare is in demand."

The company announced in a stock exchange filing yesterday that its unit Maharani Specialist Hospital Sdn Bhd has entered into a Sale and Purchase Agreement (SPA) with Property Base Development Sdn Bhd for the proposed acquisition of land on which stands the partially completed seven-storey Maharani Specialist Hospital Building.

The building, whose construction was abandoned since 2005, is expected to have a gross floor development area of 260,000 sq ft.

In the announcement, KPJ said it intends to commence construction works on the hospital building, immediately upon completion of the SPA. Further development work is expected to cost about RM26 million to be financed by internally generated funds, with completion by end-2011. The building is expected to be used as a private hospital.

The acquisition is to be free of encumbrances and KPJ expects to complete the land acquisition by first quarter of 2010. The deal is not subject to KPJ shareholders' approval but regulatory and government approvals are required, the company said. Ministry of Health approval is necessary for the completed property to be operated as a private healthcare facility.

By The EDGE Malaysia (by Loong Tse Min)

SKN Land to develop two projects in KL

KUALA LUMPUR: High-end property developer SKN Land and Development Sdn Bhd plans to develop a mixed development project in Desa Pandan and a 27-storey residential project in Jalan Yap Kwang Seng.

The Desa Pandan project will involve a gross development value (GDV) of more than RM300 million while the GDV for the Jalan Yap Kwang Seng project is about RM100 million, chairman Mohd Rosly Hussein said Tuesday.

"We have already submitted our plans to the Kuala Lumpur City Hall and are waiting for approvals," he told reporters after an agreement signing ceremony between Crest Worldwide Resources Sdn Bhd and Asian Finance Bank (AFB) here.

Crest Worldwide Resources is a member company of SKN Land.

On the agreement, Mohd Rosly said AFB has now become the global marketing representative for Crest Worldwide in promoting the Crest Jalan Sultan Ismail property.

Crest Jalan Sultan Ismail is a mixed development comprising a 44-storey luxury residence tower and a 26-storey Grade A office tower with a GDV of RM500 million.

"About 70 per cent of the Crest Jalan Sultan Ismail luxury residence tower had already been sold to elite profile buyers," he said.

AFB chief executive officer Datuk Mohamed Azahari Kamil said the bank would promote the Crest Jalan Sultan Ismail property through the bank's global network of branches and corporate offices.

The bank, he said, planned to organise roadshows starting next month to promote the property in Qatar, South Korea, Indonesia, Singapore, Australia and the Philippines.

By Bernama

IJM Land's S2 heights, an extension to Seremban 2 township

SEREMBAN: Situated on elevated land beside the developed Seremban 2 township is S2 Heights, IJM Land's latest property development in Negeri Sembilan's state capital.

S2 Heights covers 600-hectares (1,500 acres) of freehold land.

IJM Land Group Sales and Marketing Manager, Susan Teh said it is being planned as an extension to the Seremban 2 township.

"S2 Heights aims to be the new showcase for a collection of modern homes within a low density neighbourhood. The first phase development of link homes launched less than two years ago, are fully sold," she told Bernama here on Tuesday.

She said purchasers of these homes have received their keys and are are satisfied with the elevated location, breezy air, good view and wide open spaces.

Now, she highlighted, S2 Heights is offering three new residential homes.

These are the much awaited 22' x 70' single storey Lyrica link houses, the 24' x 75' double storey link homes (Symphony 2) and the Sonata double storey semi-detached accommodation.

"These homes are being built in the same tradition that has made Seremban 2 a distinctive neighbourhood, a well planned community of quality homes, extensive facilities and on time delivery.

"Showhouses for these three homes are ready and interested customers are urged to book by December 31 to avoid disappointment, as a very limited units are available at an attractive interest rate," she added.

Susan said the entire S2 Heights development has been conceived to have generous road frontage to reduce traffic congestion within the development.

"One of the many facilities available to S2 Heights residents is a 19-hectare Hill Town Park and a Chinese school. The park will serve not only the residents of the development but the total population of Seremban as well.

"After a leisurely stroll up the park, one can take full advantage of the spectacular view and surrounding greenery, all of which are rare and forgotten experiences in today's hectic lifestyle.

"Being conveniently situated beside Seremban 2, S2 Heights also takes advantage of the existing amenities and facilities provided by the established township, including schools, shopping convenience, F&B outlets, banks, government offices, a sports complex and recreational city park," Susan explained.

By Bernama

B-Land records RM112.9m pretax for Q2

BERJAYA Land Bhd has recorded a higher pre-tax profit of RM112.9 million for the second quarter ended October 2009, compared to RM49 million last year, mainly due to lower impairment loss on quoted investments and investments in associated companies as well as higher profit contribution from the property development division.

Group revenue for the current quarter was about 7 per cent lower at RM983.1 million compared to RM1.1 billion recorded last year mainly due to lower revenue from the Number Forecast Operator (NFO) business operated by Berjaya Sports Toto Bhd (BToto) which reported stronger sales in the previous year arising from several high Jackpots in the Mega 6/52 game.

The hotels and resorts division also reported lower revenue affected by the outbreak of Influenza A(H1N1) and the global economic conditions.

For the 6-month period ended 31 October 2009, the Group reported a drop in revenue of about 4 per cent to RM1.9 billion and pre-tax profit increased by about 75 per cent to RM232.8 million compared to the corresponding period last year.
The lower revenue was mainly due to lower revenue contributions from the NFO and hotels and resorts businesses in the Group.

Pre-tax profit was much higher due to substantial write-back of impairments in value of investments in associated companies and quoted investments and gain on capital distribution by an associated company.

In the previous year, the Group incurred substantial impairments in value of investments in associated companies and quoted investments due to the then poor stock market performance.

"Given the uncertain global economic conditions, the Directors envisaged that the property market will be soft and the operating performance of the hotels and resorts and business may also continue to be affected by the outbreak of Influenza A(H1N1). However, the NFO business under BToto is expected to remain resilient," the company said in a statement.

With this backdrop and barring unforeseen circumstances, the the Group’s operating performance for the remaining quarters of the financial year ending 30 April 2010 are expected to remain satisfactory, it added.

By Business Times