Govt said planning compulsory acquisition of land

The government plans to compulsorily buy a piece of land measuring 0.38ha on Jalan Tun Razak, Kuala Lumpur, from property developer IGB Corp Bhd.

The land is near Megan Phileo Promenade and a stone's throw from the Petronas Twin Towers.

Should the government pay the prevailing price of around RM1,200 per sq ft for the piece of land, the land may be sold for some RM40 million, a source said.

It is understood that the government may build a fire station on that location.

"IGB has already received a development order to build 166 units of high-end service apartments with 200,000 sq ft of net saleable area," a source told Business Times.
The source added that IGB hopes to get at least RM1,200 per sq ft, given that land prices in vicinity of the Kuala Lumpur City Centre ranges from RM1,900 to RM2,200 per sq ft.

Should IGB be paid RM1,200 per sq ft, it may get some RM40 million from the government.

"The project is in the pipeline, but it has not been launched yet," another source said.

Citigroup in a research report dated December 16 said that the book cost for the land is RM6.4 million or RM156 per sq ft.

"Typically, compulsory acquisition is done at market price (but what is the market price is also subjective) ... In the property market report, the last transaction in the KLCC area (off Jalan Tun Razak) was close to RM1,500 per sq ft," the report said.

It added that should the land be sold at RM1,200 per sq ft, IGB has a potential after tax-gain of RM32 million.

By Business Times (by Vasantha Ganesan)

E&O to sell land to Hap Seng for RM103m

EASTERN & Oriental Bhd (E&O) has entered into a sale and purchase agreement to sell a 4,651.203 sq m land together with preliminary works carried out thereon to Hap Seng Consolidated Bhd for RM103 million.

The sale is expected to be completed by first quarter of 2010. The plan is for Hap Seng to develop a 35-storey office building with a five-storey basement carpark on the land.

As at November 30 2009, E&O’s total bank borrowings stood at RM1.03 billion. Assuming the entire proceeds from the sale were to pare down borrowings, E&O can save RM5.8 million in financing cost based on an average 5.7 per cent interest rate per year.

By Business Times

E&O sells land for RM103mil

PETALING JAYA: Eastern & Oriental Bhd (E&O) is selling a parcel of freehold land in Kuala Lumpur measuring 4,651 sq metres to Menara Hap Seng Sdn Bhd for RM103mil in cash.

In a statement to Bursa Malaysia Monday, the company said Radiant Kiara Sdn Bhd, a wholly-owned subsidiary of Matrix Promenade Sdn Bhd, which in turn is a wholly-owned subsidiary of E&O, had entered into a sale and purchase agreement with Menara Hap Seng for the sale of the land.

E&O said the sale was in line with its strategy of preserving capital value and strengthening balance sheet, adding that the cash could be deployed in other projects and investments to maximise returns or for the repayment of borrowings.

It added that preliminary structure and piling works had been carried out on the vacant piece of land.

The sale would not have any effect on the issued and paid-up share capital and substantial shareholders’ shareholdings of the company, and that the transaction is expected to be completed by the first quarter of 2010, according to E&O.

By The Star

YTL, PDC to build luxury apartments

The Penang Development Corporation (PDC) and YTL Land & Development Bhd today signed an agreement to develop luxury apartments on a 1.38-ha land in Lebuh Farquhar, Penang.

Each party would hold 50 per cent equity in the project.

Originally, a hotel was to be built on the site by PDC Heritage Hotel Sdn Bhd, a joint venture between YTL Hotels & Properties Sdn Bhd (a wholly-owned subsidiary of YTL Corporation Bhd) and PDC.

After the hotel project was shelved due to the economic slowdown, PDC Heritage Hotel sought to change the type of development from hotel to luxury apartment.
Subsequently, it applied to change the type of land holding to freehold and the condition of land use to residential and business.

The new project comprises three six-storey 76-unit apartment blocks including an underground basement, a clubhouse and a restaurant.

By Bernama

PNB buys Kenanga building for RM250m

Permodalan Nasional Bhd has purchased the 22-storey Kenanga International Building in Kuala Lumpur from Injaz AsiaEquity Property

Permodalan Nasional Bhd (PNB) has bought the Kenanga International Building on Jalan Sultan Ismail, Kuala Lumpur, for an estimated RM250 million, sources say.

The 22-storey commercial building with a three-and-a-half- storey annexed podium block was purchased from Injaz AsiaEquity Property Bhd.

Injaz AsiaEquity was jointly set up by Middle East Injaz Mena Investment Co and Singapore-based AsiaEquity Partners Inc.

"The acquisition by PNB was completed on Thursday (December 17)," a source told Business Times.
Another source said that the building was sold for about RM700 per sq ft.

Based on reports, the building is said to have a net lettable area of 297,522 sq ft and sits on 6,804 sq m of land. However, under a planned refurbishment and upgrading exercise, the building will have an additional lettable area of 70,000 sq ft. This will translate into some RM250 million.

PNB did not respond to Business Times' query.

In September 2008, Tower Real Estate Investment Trusts (Tower REIT) said that it had planned to buy Kenanga International Building for RM157.5 million. This deal, which works out to around RM550 per sq ft, was not completed as some conditions were not met.

Sources say PNB is paying more for the deal because of the upgrading work.

According to Kenanga International's website, the upgrade is in the final phase and will be completed by December 31 2009. The building will house an executive lounge, a new secondary lobby and a swimming pool.

In June 2007, K&N Kenanga Bhd sold the building to Injaz AsiaEquity for RM165 million.

Meanwhile, three years ago, PNB bought the 35-storey Bangunan MAS on Jalan Sultan Ismail located across Kenanga International Building for RM130 million.

PNB has indicated that it plans to convert Bangunan MAS into a business or five-star hotel and to demolish the podium next to it for a luxury serviced apartment tower. The hotel and apartments would be worth a combined RM1 billion.

By Business Times (by Vasantha Ganesan)

The online real estate agent

For players in the real estate industry, the Malaysian Annual Real Estate Convention (MAREC 10) has always been an exciting event to look forward to every year.

Next year is no different with MAREC 10, the brand name for 2010’s convention, promising a host of prominent local and international speakers who will share their views and experiences on the theme, “The Millionaire Real Estate Agent”.

Some of the topics that will be discussed at the convention are:

Topic 1: Social Media & Technology – Do they affect the way real estate is marketed?
Social media is, of course, a worldwide phenomenon now. From Facebook to Twitter to MySpace, the list is never ending. But the idea of using social media for real estate advertising is still very new and has only recently started gaining popularity in Malaysia.

Just where and how does one start using social media as an advertising tool? How do you plan your next step once you are on social media? Is there a future and will genuine business be coming in from these channels or is it just hype? How can you motivate people to talk about properties on these channels?

Property developers have started to use Facebook to market their properties. Politicians also use blogs and Facebook to get public opinions and feedback on various issues. Are estate agents able then to successfully manage their online persona? What are the pitfalls here?

Oon Yeoh, the speaker for this topic, will provide a critical analysis on the online social media and the estate agent. He is the editor for New Media at The Edge and has been writing about technology issues and trends since 2000. His weekly tech column often touches on the topic of social media. He is currently working on a book on how companies can use social media for communication, branding and promotion purposes.

Topic 2: Negotiating for success
The negotiator is the most important person in a real estate agency. Someone with good negotiation skills will bring in sales and keep the business of the company going. Those setting their sights on becoming a millionaire real estate agent must also be a million dollar negotiator in the first place.

What are the qualities necessary to negotiate for success? What are the innate qualities that you already possess but have not yet fully utilise? How can you sharpen your skills to be more focused in your negotiations? How can you present and put across the selling points clearly to your prospective clients?

Chandran Pillay, the speaker for this topic, will guide participants on how to negotiate for success and share his wealth of experience from selling properties in Singapore. He has been in the real estate industry since 1995 and is currently the senior vice president at Century 21 Singapore, a real estate agency in Singapore. He is also the honorary secretary and membership chairman of the Institute of Estate Agents in Singapore.

Topic 3: Millionaire real estate agent forum
The millionaire real estate agent forum is the place for interaction between participants and the speakers. MAREC 10’s organising committee is working to create a dynamic platform for this purpose and there will be four speakers from various sectors of the real estate market present.

Each speaker specialises in a particular area and will speak about their success stories in becoming a millionaire real estate agent in their respective agencies. They will share their personal experience on how the different types of estate agencies businesses are conducted in their own markets with emphasis on business opportunities available to estate agents in Malaysia.

Participants will be given an insight into micro management of these speakers’ businesses that have made them leaders in the industry. Participants are also encouraged to put forward questions that they may want the speakers to answer.

The panel speakers are:
• Nixon Paul, director, Carey Real Estates Sdn Bhd
• Robert Ang, director, Rahim & Co
• Clement Ong, director, Megaharta Real Estate Sdn Bhd
• Adrian Wang, director, CBD Properties Sdn Bhd

MAREC 10 is scheduled for Jan 23 and 24 at the Putra World Trade Centre in Kuala Lumpur. There will also be a networking dinner to welcome delegates, VIPs and speakers on Jan 22.

Between now and Dec 31, early bird discounts are offered for members, non-members and negotiators. The convention is open to the public at RM800 per participant.

For details, contact MIEA. Tel: 03-7960 2577 | Fax: 03-7960 3757 | Email: secretariat@miea.com.my | Website: www.miea.com.my

By The Star

Dubai firm keen to invest US$500m in Melaka

A company from Dubai, Golden Crescent Group, has expressed interest to invest US$500 million (about RM1.720 billion) in Melaka, Chief Minister Datuk Seri Mohd Ali Rustam said today.

"They showed interest to invest in the state after seeing the development in Melaka," he told reporters after opening the 34th general representative meeting of 4B Youth Movement in Ayer Keroh.

He said Golden Crescent was interested to invest in fields like hotel, manufacturing, recycling and building a specialist hospital.

Representatives from the company -- Dr Abdelrahman Mustafa Abdullah Al Jarrar, Mahomed Akbar Khan dan Dr Khalil A.H. Al Khalil -- met Ali earlier today.
During the meeting, Ali said, he had also suggested the company to invest in animation films in the state. A memorandum of understanding would soon by signed between Chief Minister Incorporated and the company, he added.

He said that among other factors that drew the interest of foreign investors to Melaka were the existence of various infrastructures, abundant skilled workforce, political stability and peace.

"They have visited tourist spots, industrial areas, factories producing high-tech products, higher learning institutions, ICT facilities, the Melaka Institute of Biotechnology and many other places. That's why they are interested to invest here," Ali said.

He said Melaka's foreign investment target for next year was RM3 billion while this year's achievement would be known by the end of December.

"Melaka has received a lot of investment in the tourism industry so I think the Malaysian Industrial Development Authority can also consider this as foreign direct investment besides the manufacturing sector," he said.

By Bernama

MK Land to build more high-end homes

The Rafflesia by MK Land.

MK Land Holdings Bhd plans to transform Damansara Perdana in Petaling Jaya into a more high-end area by focusing on building luxurious landed properties in a location known predominantly for its high-rise condominiums.

Chief operating officer Fatimah Wahab tells StarBizWeek through an e-mail recently that the company will be pushing for more high-end residentials after receiving positive feedback from buyers of The Rafflesia that they would like to see more landed units.

The Rafflesia, which offers modern contemporary three-storey semi-detached houses tucked in an exclusive enclave within Damansara Perdana, is the first landed property in that location. “We are confident that the demand for landed property in Damansara Perdana is increasing. This is based on the great respond we had with Rafflesia,” she says.

The company sold 84% of its units within two days when it held a second launch of Rafflesia recently. With a built-up area of between 3,861 sq ft and 4,668 sq ft, prices start from RM1.4mil. The company expects to attract high net worth owner-occupiers, existing MK Land buyers as well as foreigners from Japan, South Korea and Australia.

“Apart from high-end products such as The Rafflesia, our investors have also shown interest in our service apartment development, Metropolitan Square Residences. That project is about 65% sold. Prices range from RM250,000 per unit,” she says.

The core products for MK Land are The Rafflesia, Armanee Terrace condominiums and Metropolitan Square (block C) condominium. They are expected to enhance profitability under the developer’s five-year roadmap.

MK Land believes its concept of green, clean lush living areas will be able to woo more buyers and investors into that location, particularly expatriates.

Damansara Perdana is a mixed development comprising commercial and residential properties on a 750-acre integrated township that is destined to be a premier centre for business and living in what is currently known as PJ north.

It is located adjacent to highly popular Mutiara Damansara, which is developed by the Boustead group. Over the years, the M K Land group has sold more than 40,000 housing units exceeding RM5bil, including properties in Damansara Perdana.

By The Star (Edy Sarif)

SP Setia plans more homes at Shah Alam township

SP SETIA Bhd will launch 3,000 new homes in Precinct 6, 7 and 8 at its 1,000ha Setia Alam township in Shah Alam over the next two years.

To date, it has launched about 7,000 homes in the three precincts, sprawled over 400ha, where 4,000 homes are occupied.

Bandar Setia Alam Sdn Bhd general manager Tan Hon Lim said SP Setia has another 600ha to develop over the next seven to 10 years, which will cater to an additional 10,000-15,000 new homes and Setia City commercial hub.

"We will continuously launch our terraced homes and semi-dees in various sizes to give purchasers a wide range of choice when considering buying a home in Setia Alam," Tan told Business Times.
Tan said people are buying into SP Setia due to potential price appreciation and value.

"Thanks to our 5/95 financing package, we sold around 1,000 units this year. We hope to sell the 3,000 homes that we plan to launch, in two or three years. So, next year will be more challenging for us than 2009," Tan said.

Tan said Setia Alam homes have evolved into more modern designs for some phases, incorporating more friendly features with emphasis on security.

Setia Alam, previously known as the North Hummock Estate, was started in April 2004.

SP Setia bought 1,600ha of the estate in 2002.

It sold 274ha to the Selangor Development Corp (PKNS) and allocated 316.4 for the development of Setia Eco Park.

SP Setia, the Employees Provident Fund and Great Eastern respectively hold 50 per cent, 34 per cent and 16 per cent of Setia Eco Park, which is focused on selling land, bungalows and semi-dees.

Tan said Setia Alam has potential to generate a gross development value of RM8 billion, which is excluding the Setia City commercial hub.

Since the launch of Setia Alam, SP Setia has sold around RM2 billion worth of properties, including terraced houses and semi-dees.

To boost sales, SP Setia constructed the Meru/Setia Alam Link for RM150 million with direct access to the New Klang Valley Expressway (NKVE).

By Business Times (by Sharen Kaur)

A growing industry

Emphasis on property management and maintenance is expected to lift the property care services industry going forward.

Property care services is relatively small in Malaysia but it is a growing sector as owners and tenants put more emphasis on property management and maintenance.

Property Care Services (PCS) International managing director Arnaud Bialecki says property maintenance adds value to a property, particularly for commercial buildings like shopping complexes, office buildings and hotels.

Owners or companies will be able to collect better rental with high quality properties, which can be done through property care services - ARNAUD BIALECKI

“Owners or companies will be able to collect better rental with high quality properties, which can be done through property care services,” he tells StarBizWeek in an interview recently.

An associate company of OCS Group UK, PCS is a privately owned company offering a full range of property support services with over 100 years of experience.

Property Care Services (M) Sdn Bhd has been in Malaysia since 1997, with its base in Kuala Lumpur and branches in Penang and Johor.

It currently has 400 staff in Malaysia with plans to increase this by another 600 in five years. It has more than 60,000 employees worldwide. It is more established in Thailand with about 3,000 related companies and a staff strength of 23,000.

In terms of revenue, it is expected to chalk up earnings of RM375mil from its Thailand operations this year compared with Malaysia’s RM7.5mil, with an expected annual growth of 10%.

PCS has established operations in several countries throughout the region such as Cambodia, Bangladesh, India, Austraila and New Zealand.

The company provides integrated property support services, which includes cleaning, washroom and hygiene, pest management and gardening services.

On the Malaysian operations, the company is currently seeking business opportunities with five-star hotels and Grade a buildings. It currently holds a 45% market share in property care services in the local retail market.

Besides its operations in the Klang Valley, PCS is also seeking to expand its business into Sabah and Sarawak in the next two to three years.

The company sees potential for Malaysia to become a major marekt and revenue earner for the group in the future.

“We see opportunity in the tourism industry as new hotels are being set up in East Malaysia, which includes large hotel chains from overseas,” he says.

He says the company also plans to acquire companies in similar business activities in Malaysia, Singapore and the Middle East. It plans to venture into Vietnam next year.

On how PCS differentiates itself from its competitors, Bialecki says the company uses a lot of technology, supervision and training.

“We invest in technology and equipment and put a lot of emphasis on staff training using the standards of the British Institute of Cleaning Science,” he says.

On challenges in the property care services industry, Bialecki says human capital is a major problem globally as this is not a glamorous industry.

It is, therefore, hard to retain and recruit people. The percentage of employee turnover for the company in Malaysia is 4%.

Other challenges include the local climate and environmental conditions. “With monsoons, heat and dust, not to mention pollution, it is necessary to take a specialised approach to the professional maintenance of buildings,” he says.

On local market outlook, he says as more buildings are developed, there will be a need for such services.

“However, the market might feel the impact of the economic downturn in 2011 and 2012 as there are less projects being launched since last year. We see a pick-up today and this bodes well for companies like ours,” says Bialecki.

Moving away from the Klang Valley, he says the various projects around the country like the economic corridors would favour property care companies like PCS.

“Our priority in the next few years is to get market share away for our competitors,” he says.

The company’s client base includes BMW, Suria KLCC, Star Hill Shopping Centre, Menara Citibank, YTL Residence and Royal Lake Club.

By The Star (by Lee Kian Seong)

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