CHM Hotels sees larger contribution from MICE

CHM Hotels Sdn Bhd expects the meeting, incentive, conventions, and exhibitions (MICE), and the corporate markets to generate 70% of the collective annual revenue of the hotels under its management in the country in 2010.

Datuk Eric Lim ... ‘The MICE and corporate market generated about 60% of our collective revenue of our hotels in the country.’

CHM’s managing director Datuk Eric Lim told StarBizWeek that the CHM chain of hotels has to date secured 10% to 15% more bookings from the MICE and corporate segment for 2010 compared to 2009.

“For this year, the MICE and corporate market generated about 60% of our collective revenue of our hotels in the country,” he says.

Lim said between 2008 and 2009 some of the hotels under CHM spent RM108mil on renovations and upgrading, which helped boost bookings from the MICE and corporate market.

MiCasa All Suite Hotel in Kuala Lumpur, for example, reopened on Dec 9 after spending RM85mil on renovation works. The Boulevard Hotel in Kuala Lumpur and the Cititel Hotel in Penang also spent RM5mil and RM8mil respectively on upgrading works.

“We have also embarked on a cross-promotional programme with Pangkor Island Beach Resort, another CHM managed hotel, to market George Town’s heritage status and Pangkor Island beaches.

“This strategy has also helped to increase bookings from the MICE and corporate segment,” Lim says.

On the forthcoming RM100mil Cititel Express in Penang, Lim says construction work for the four star 28-storey hotel should start in the first quarter.

“The plan is for Cititel Express in Penang to have over 500 rooms, scheduled for completion in the second quarter of 2012,” he says.

CHM presently manages The Gardens Hotel & Residences, Kuala Lumpur, The Boulevard Hotel, Kuala Lumpur, Pangkor Island Beach Resort, Cititel Penang, Cititel Mid Valley, Kuala Lumpur, Cititel Espress Kuala Lumpur, Cititel Express Kota Kinabalu, and MiCasa All Suite Hotel, Kuala Lumpur.

By The Star (by David Tan)

Signature fittings for more homes

SignatureKitchen cabinets may be finding their way into more homes, including of first-time house buyers and young executives, when the manufacturer, Signature International Bhd, launches its kitchen system brand, called Kubiq.

If previously, Signature's kitchen fittings were more likely to be found in upmarket condominiums and residences, the availability of a more affordable range could open up a broader market for the manufacturer.

Customers will not have to travel far to visit a Kubiq showroom either as Signature plans to open up to 100 outlets nationwide through franchising.

Sharing the company's latest plans with Business Times, managing director Tan Kee Choong said that Kubiq features a new concept in the furniture industry here by involving customers in the design of kitchen fittings for their homes.
"It is like a no-frills kitchen cabinet system because customers only pay for what they want. Customers pick and choose the products from the showroom and decide how much to spend," he said, when met after the company's annual general meeting in Petaling Jaya, Selangor, on Thursday.

Through its business model, Signature can control inventory and pass on the savings arising from economies of scale in the form of competitive product pricing, Tan said.

"This is part of our long-term plans to nurture the first-generation Signature customers. Kubiq enables customers to get SignatureKitchen cabinet systems at entry level and when they upgrade their lifestyle, they can purchase the systems that are more trendy and offer greater choice."

Tan said that Signature had a soft launch of Kubiq early this month and that seven out of 10 invited customers had already placed their orders.

The customers, mostly young executives aged between 25 and 35, ordered Kubiq fittings priced as low as RM2,000 an item.

Tan also said that the company will identify suitable franchisees for Kubiq in the first quarter of next year, expressing optimism that the 100 outlets may be realised as early as in two years.

For now, the group's major revenue contributor will continue to be the kitchen fittings that it undertakes for residential projects.

By Business Times (by Hamisah Hamid)

Rehda: Property sector to recover in 2nd half of 2010

Malaysia's sluggish property market is expected to recover in the second half of next year, in line with the country's improving economy.

Real Estate and Housing Developers' Association (Rehda) chairman Datuk Michael K.C. Yam said based on the findings of its own survey, over half of members are optimistic the market will improve.

"The respondents are optimistic that the property market will improve amid cautious optimism with houses between RM100,000 and RM250,000 expected to see good demand," Yam said in Kuala Lumpur yesterday at a media briefing on property updates.

A total of 103 members participated in the survey. Rehda has about 900 members.
Most developers agree the economy will recover next year with the government forecasting growth of 2 to 3 per cent.

Only 21 per cent of respondents will maintain current prices for new launches while another 38 per cent said they will increase their prices.

A majority expects property prices to rise by up to a fifth over the next six months.

"Higher Employees Provident Fund withdrawal for subsequent home purchases and lower toll to encourage buyers to buy homes outside of Kuala Lumpur can improve the sector," said Yam.

By Business Times (by Zaidi Isham Ismail)

Rehda: Property market to improve

KUALA LUMPUR: The Malaysian property market is expected to improve next year in line with the expected improvement in gross domestic product.

Real Estate and Housing Developers’ Association Malaysia deputy president Datuk Michael Yam Kong Choy said most developers were optimistic that the property market would recover beyond the second quarter of next year.

“A continuous population growth, a low interest rate environment, low unemployment rate as well as easy access to financing, will boost demand for the property market,” he told a media briefing yesterday.

Yam said there would be more new property launches next year, especially in the second half.

He said houses priced between RM100,000 to RM250,000 were expected to continue to be in good demand. — Bernama

On the implementation of the fixed 5% real property gains tax (RPGT) on Jan 1, Yam said the timing of the imposition was not right.

He said the RPGT should be imposed only to curb speculation and not across the board. “If imposed at all, it should only apply to transactions within a specified period,” he added.

Meanwhile, RAM Holdings Bhd economist Kristina Fong said the rating agency projected Malaysia’s GDP to grow by 4.9% next year.

She said domestic-oriented services, as well as construction and manufacturing industries, will drive the modest recovery.

By Bernama

MPI to organise property exhibition in India next year

KUALA LUMPUR: Malaysia Property Incorporated (MPI) will organise a property exhibition in India for Malaysian developers next year.

The exhibition, at the Hyderabad International Convention Centre (HICC), is from Jan 21-23.

"MPI is optimistic that the exhibition is an excellent opportunity to continue promoting Malaysia as a premier real estate investment," MPI chairman Datuk Richard Fong, said in a statement here, Thursday.

MPI is a Malaysian government initiative set up to promote and brand Malaysia as an international property investment destination.

It is driven by the International Real Estate Federation (FIABCI) Malaysian Chapter in collaboration with the Malaysian government, the Real Estate Housing Developers' Association (REHDA), the Malaysian Institute of Estate Agents (MIEA) and the private sector.

By Bernama

New mortgage product boost for Hong Leong Bank

PETALING JAYA: Hong Leong Bank Bhd expects its new mortgage loans to grow 10% in the first three months of the launch of the Hong Leong Flexi Mortgage yesterday.

Yvonne Chia says customers can take a bigger loan amount while enjoying smaller monthly installments.

The mortgage plan, which allows customers to defer payment of 15% to 35% of their total loans to the end of the loan tenure, would allow customers to take a bigger loan amount while enjoying smaller monthly instalments, group managing director and chief executive Yvonne Chia said at the launch of the new mortgage plan.

“In purchasing a home, buyers often have to compromise on the location, lifestyle, property type or even the design of their desired home,” she said. “With changing lifestyles and increasingly discerning taste, the new generation of homebuyers would certainly appreciate a bigger loan amount to cater to their needs.”

Chia said housing loans now accounted for 58% of the total household debt.

The bank’s personal financial services chief operating officer Moey Tan said the new product offered a monthly instalment of close to 7% of the loan amount for most of the loan tenure. The monthly instalment would increase near the end of the tenure.

Tan is confident the new mortgage plan would appeal to homebuyers as most people would have a higher income nearing the end of their loan tenure.

The Hong Leong Flexi Mortgage is for residential properties valued from RM200,000. It is targeted at first-time buyers and those looking to upgrade their homes. It has an interest rate of base lending rate (BLR) minus 1.8%. Hong Leong Bank’s current BLR is 5.55%.

By The Star

YTL Land to buy half of PDC Heritage Hotel

YTL Land and Development Bhd plans to buy a 50 per cent stake in PDC Heritage Hotel Sdn Bhd (PDC) for RM14.6 million.

The deal is a related party transaction as PDC is a subsidiary of YTL Hotels & Properties Sdn Bhd.

PDC owns a parcel of leasehold commercial land measuring about 1.4 hectare located along Lebuh Farquhar, George Town, Pulau Pinang.

By Business Times

Projects on housing, roads and basic amenities to benefit 10 million

United we stand: (Fourth from left) Datuk Dr S. Subramaniam, Datuk Seri Idris Jala, Tan Sri Dr Koh Tsu Koon, Tun Abdullah Ahmad Badawi and Datuk Seri S. Samy Vellu at the launching of the Goverment Transformation Programme (GTP) at the Sunway Pyramid Convention Centre yesterday.

The Government is trying to reach out to the 10 million poor people living in the rural areas by building more roads, providing low-cost housing, delivering clean water and electricity.

It plans to build roads totalling 7,000km-long at an estimated RM10.5bil, supply treated water to 360,000 houses, construct new and restore 50,000 houses as well as provide electricity supply to 140,000 houses.

“We will implement these projects within the next three years.

“The clean water supply would be enough to serve an equivalent to the whole of Kedah’s population while the electricity supply would be enough to serve the whole of Malacca’s population,” said Basic Rural Infrastructure Lab leader Mohamad Sabari Shakeran.

Mohamad Sabari said once the basic infrastructure of the rural areas had been addressed, social development and other matters would fall into place.

“Can we deliver? Yes, we can. We have conducted a survey to see if we have enough contractors, supply and machinery to deliver these projects, and we have enough capacity.

“Yes, there is also enough money but the prime minister will announce the allocation later,” he said.

Mohamad Sabari said the lab had also identified internal red tape as one of the factors which would delay the implementation of government projects.

“We have met up with the various agencies to shorten the process.

“For example, the process for road construction open tender takes 136 days.

“We have now shortened it to 71 days. This does not mean we are stopping here.

“We are still looking into ways to shorten the process further. But this is a start,” he said.

Rural Basic Infrastructure

> Over 7,000km of new and upgraded roads nationwide

> 1,500km of roads in Sabah and Sarawak

> Piped clean or treated water for 360,000 houses nationwide

> Increasing water supply to 80% in Sabah and Sarawak

> Electricity for over 140,000 houses nationwide

> Electricity coverage to 95% in Sabah and Sarawak

> Providing 50,000 new and restored houses to the poor and hardcore poor

By The Star

Equine Capital sells Petaling Land for RM28mil

KUALA LUMPUR Equine Capital Bhd (ECB)'s wholly-owned subsidiary Taman Equine (M) Sdn Bhd today entered into a sale and purchase agreement with Tanjung Balai Sdn Bhd for the disposal of a leasehold land for RM28 million.

In a statement, it said the 4.72-hectare land in Mukim Petaling, Selangor, was categorised as building land zoned for commercial use.

It is charged to a local bank as part of the security of the ECB Group for a term loan facility.

The land, acquired in 1994 at RM260,168, was revalued to RM8.7 million upon the listing of ECB in 2003 and further revalued to RM28.8 million as at March 2009.

The land had been leased to Aeon Co (M) Bhd and the lessee had erected a building known as "Aeon Taman Equine Shopping Centre".

The annual lease rental currently payable under the lease agreement is RM1.5 million.

ECB said the proposed disposal was in line with the group's business strategy of disposing non-core assets to streamlime the business operations.

Of proceeds, ECB said, RM10 million would be used to repay bank borrowings and the balance as working capital for its property development activities.

Tanjung Balai Development is involved in property development and investment holdings.

By AP

Equine Capital unit sells Selangor land for RM28m

EQUINE Capital Bhd’s subsidiary is selling a 4.7ha plot of land in Selangor to Tanjung Balai Development Sdn Bhd for RM28 million.

The company said the sale was part of strategy to get rid of non-core assets and streamline its businesses.

Proceeds would be used to reduce borrowings and to provide working capital.

Taman Equine (M) Sdn Bhd will use RM10 million to repay debt while another RM18 million will be for working capital.

By Business Times

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