Pantai to open RM500m hospital in Johor

Healthcare group Pantai Holdings Bhd is scheduled to open a RM500 million hospital in the Iskandar region in Johor.

The 400-bed hospital will also have a centre of excellence and a nursing college, the hospital's chairman Tan Sri Khatib Abdul Hamid said.

"It will be ready within five years, but it can be earlier," Khatib said.

However, it is unclear if Pantai will wholly own or merely have a stake in the hospital. It could also lease and operate the premises.
Pantai has also confirmed the opening of a hospital in Sri Manjung, Perak. To be ready in 2012, Pantai will lease this building and manage it.

Pantai now operates nine hospitals nationwide.

Khatib was speaking to reporters at a signing ceremony with Preventive Healthcare Sdn Bhd.

Preventive Healthcare basically markets health screening packages locally and abroad. Its customers can then seek treatment at any one of the Pantai hospitals.

Its chief executive officer Dax Lee said it now has some 600 members and is looking to grow this to 20,000 within the next five years.

This three-year-old company is also looking to rake in RM290 million in revenue in the next five years as it makes an estimated 150,000 transactions from its services.

Lee added that the business, which he owns with his partner, the chief operating officer Cheong Dik Hau, has been profitable since the first year.

Preventive Healthcare has set up an office in Jakarta and will this year branch out to Medan, Indonesia and Hanoi, Vietnam. It is also looking at moving into Surabaya (Indonesia) and Guangzhou (China) in 2011 to lure foreign patients into Malaysia.

The company also provides electronic storage of all medical records for up to 15 years.

By Business Times

SP Setia upbeat on RM2b sales

PROPERTY developer SP Setia Bhd is projecting RM2 billion sales this year, driven by the improved economy and ongoing product launches in addition to its financial package campaign offerings.

The group has 10 ongoing projects and some 1,578 hectares. of landbank with a total gross development value of RM26 billion, sustainable over the next 12 years.

Despite the challenging economy, it posted a RM171 million net profit and a record breaking sales of RM1.65 billion last year.



"Sales have continued to hold up at higher than the pre-crisis level due to the group's strong branding and innovative marketing strategies," said president and chief executive officer Tan Sri Liew Kee Sin after the company's annual general meeting yesterday.
He said continuous strong sales is projected in its key locations namely Klang Valley, Penang and Johor.

The 5/95 financial incentives undertaken by SP Setia has helped to push sales tremendously.

During the first quarter of 2010, it recorded RM608 million in sales, a sixfold increase from the RM101 million during the same period in 2009.

Last year, the property group made its foray into the luxury high-rise development with the launch of Setia Sky Residences located in the vicinity of Kuala Lumpur City Centre, Setia Walk in Puchong and EcoLakes in Vietnam.

SP Setia ventured into Vietnam in mid-2007 with a US$12 million (RM40.4 million) acquisition of a 243ha land located 42km north of Ho Chi Minh City.

Last year, it also entered into a joint-venture agreement with Hangzhou Ju Shen Construction Engineering Ltd to carry out mixed development projects in XiaoShan, Hangzhou.

"However, sales this year will mostly be from the Malaysian market as we are stronger economically. Sales from Vietnam is only projected to be about RM100 million of the RM2 billion total sales target," Liew said.

By Business Times

SP Setia revises upward sales target

SHAH ALAM: Property developer SP Setia Bhd has increased its sales target for the financial year ending Oct 31, 2010 (FY10) to RM2bil from RM1.65bil announced earlier, backed by a jump in sales of RM608mil recorded for the first quarter.

The group achieved its highest ever sales of RM1.65bil in FY09 despite challenging market conditions last year.

President and chief executive officer Tan Sri Liew Kee Sin said he was upbeat about the sales target after the group recorded a six-fold increase in sales for the first quarter compared with RM101mil achieved in the same quarter of FY09.

“The group’s sales have continued to hold up higher than pre-crisis levels due to strong branding and adoption of innovative marketing strategies,” he said after SP Setia’s AGM yesterday.

He added that the sustained sales performance, despite a price increase of at least 10% for the group’s entire product range, would underpin its targeted return to growth this year.

“Of the RM2bil sales target, almost all will come from the local market and 10% from our project in Vietnam.

“The market in Vietnam is not so stable at the moment and we are taking it slow and steady there,” he said.

Liew said the group’s main focus would be its projects in the Klang Valley, Penang and Johor Baru.

“We have about 10 ongoing projects in Malaysia with a total gross development value of RM26bil that would last for 10 to 12 years on our 3,900 acres of land,” he said.

By The Star

JAKS to help Star develop its PJ land

AKS Resources Bhd will help Star Publications (Malaysia) Bhd turn its land in Petaling Jaya, Selangor, into a residential and commercial development.

The companies sealed a deal yesterday to build two office blocks, a commercial cum educational block and a residential block on 24,568 sq m plot in Section 13. T

The project will boast a gross development value of RM370 million, JAKS said in a filing to Bursa Malaysia yesterday.

By Business Times

Mydin to build its biggest hypermart in Kota Baru

MYDIN Mohamed Holdings Bhd, the operator of the locally-owned Mydin wholesale stores and hypermarkets, plans to build its biggest hypermarket in the country at the Tunjong new township in Kota Baru soon.

The RM200 million hypermarket, expected to be completed by 2012 will be built on a 7.2 hectare site about five kilometres from the town centre.

Mydin managing director Datuk Ameer Ali Mydin said the Kelantan government was in the final phase of acquiring the land for the project from its owners and the ground works were expected to start in May.

"It will be our biggest hypermarket in Malaysia to date and will have 2,000 parking bays. We have decided to build a big hypermarket in Kelantan because we have a large piece of land for the project and also because we believe there is a demand for it," he told reporters in Kota Baru on Tuesday night.
Ameer Ali was speaking after a special prayer led by Kelantan Menteri Besar Datuk Nik Aziz Nik Mat for its latest hypermarket in Kubang Kerian.

Mydin also targets to set up hypermarkets in Johor Baru, Ipoh, Kuantan and Kuala Terengganu by as early as next year, he said.

On its business, Ameer Ali said the economic recession has proven to be a blessing in disguise for the company, as revenue swelled to RM1.3 billion last year from RM1.1 billion in 2008.

"The recession has led to more consumers frequenting our outlets as we offer competitive prices for our goods," he said.

By Business Times

SP Setia revises 2010 sales target to RM2b

Property developer, SP Setia Bhd has revised its sales target for financial year 2010 to RM2 billion from an intial RM1.65 billion.

President and Chief Executive Officer Tan Sri Liew Kee Sin said the optimistic forecast was due to the RM608 million in sales recorded in the first quarter of the 2010 financial year.

Speaking to reporters after the company's annual general meeting today, he also said the confidence was based on the country's economic recovery following the 4.5 per cent fourth quarter gross domestic product (GDP) growth recorded last year.

For the financial year ended Oct 31, 2009 the company recorded its highest ever sales of RM1.65 billion, amidst challenging market conditions.
At present, the group has a landbank of 1,560 hectares in the Klang Valley, Johor and Penang with 10 ongoing projects.

According to Liew, the gross development value (GDV) of the landbank is estimated at RM26 billion and would enable the company to sustain itself for another 12 years.

He said for this year, the company would focus on its projects in Johor, the Klang Valley and Penang.

He disclosed that SP Setia expects its Vietnam operations to contribute RM100 million only.

SP Setia currently has two development projects, the Eco Lakes at MyPhuoc Industrial Park and EcoXanh in Ho Chi Minh City, Vietnam.

The company has chosen to go "slow and steady" in Vietnam, following the discouraging economic situation in that country, with a high interest rate of 16 per cent and the devaluation of its currency, the Dong.

However, Liew said the devaluation of the Dong did not affect SP Setia's projects there much, as the land already belonged to the company.

For the financial year ended Oct 31, 2009, SP Setia recorded RM1.4 billion in revenue with a profit before tax of RM231 million.This is against the RM1.47 billion in revenue and profit before tax of RM297.9 million previously.

By Bernama

Property sales to rise 5-10pc: RAM

The outlook for Malaysian property market is promising with sales volume expected to increase by 5 to 10 per cent this year, according to RAM Holdings Bhd.

In stating this, its chief economist Dr Yeah Kim Leng said the improving economic outlook and friendly lending policy will help to increase the confidence level of consumers and boost the property market.

"Affordable housing and domestic-led growth strategy implies supportive policies will continue, though Bank Negara Malaysia remains wary of asset bubbles," Yeah said at a talk organised by the International Real Estate Federation or FIABCI here today.

He said the favourable demographics, stricter-but-still easy access to home financing, rural-urban migration, foreign demand and income growth are all expected to improve housing sales.
Yeah said expectation that the central bank will start "normalisation" of its monetary measures beginning this month will not dampen home purchases, especially when economic growth strengthened further.

RAM expects an increase of 0.75 to 1.00 percentage point in the overnight policy rate by year-end.

Loan growth is projected to expand between 8.0 and 10 per cent this year with non-performing loans likely to hover around 2.0 to 3.0 per cent.

Loans growth remained positive at 6.5 per cent last year during the first 11 months of 2009 despite the economic recession as loans to the broad property sector outpaced overall loan growth.

Yeah said consumer credit will continue to remain the core focus of banks'' lending but competition from non-financial institutions is likely to intensify.

Property loans accounted for 36.2 per cent of total banking system loans.

"The banks still view residential property lending as relatively safe, accounting for 26 to 27 per cent of their loans portfolios," he said, adding that credit conditions are not expected to tighten as demand is not overly excessive and output gap remains for the rest of the year.

On the Malaysian economy, Yeah said the country is expected to resume modest growth this year with an upside bias should public sector reform and transformation policies and strategies strengthen further consumer and investor confidence, thus triggering a surge in domestic and foreign direct investment.

"After a massive running down of inventories last year, re-stocking will contribute to higher production this year but ''autonomous'' or ''self-sustaining'' growth has to come from private consumption and investment," he said.

RAM projects the country''s economy to grow by 4.9 per cent in 2010 and 5.4 per cent in 2011, supported by domestic-driven private sector spending and government spending.

Yeah said Malaysia could reduce its budget deficit to below 3.0 per cent of the gross domestic product (GDP) from 2013 onwards compared to the forecast of 5.6 per cent this year.

According to him, there is a chance for the deficit to be reduced from next year if economic growth can improve further.

"With the goods and services tax (GST) introduction next year, the country can raise more revenue and will be able to cut back on spending," he said.

Currently, taxes and royalties from oil and gas accounted for 40 per cent of the government revenue while its debt level made up 40 per cent of the GDP.

By Bernama

Asia acts over fears of property bubble

Asian countries fearing a disastrous US-style property bubble are striving to cool down their real-estate markets as the region powers out of the global financial crisis.

Policymakers are worried that excessive exuberance could push property prices far above their real value, only to crash and bring down with them banks that lent money too freely and individuals who borrowed beyond their means.

"It is better to pre-empt a bubble than wait for it to get serious and have to take more drastic measures," Singapore Prime Minister Lee Hsien Loong said last month after the city-state took fresh measures against speculation.Singapore was one of the countries hit by the 1997-1998 Asian financial meltdown.

That crisis followed a property crash, leaving a blighted landscape of unfinished projects across the region and banks gasping for lifelines.

Problems in the US housing market had set off the devastating financial firestorm that swept across the world in late 2008 and lasted well into 2009.

While Asia is now leading the global economic recovery, officials are determined to avert another crisis. Low interest rates, strong demand and speculation have pushed property prices in many Asian cities higher, in some cases surpassing peaks reached in 2007.

"The risk of an asset bubble is quite high in certain (economies) such as China, Hong Kong and Singapore," said Chua Yang Liang, head of Southeast Asia research at property consultancy Jones Lang LaSalle.

A bursting of that bubble could "potentially derail economic growth, especially if banks and other investment houses are overly exposed to those sectors", Chua told AFP, singling out real estate as a cause of concern.

In China, property prices in 70 major cities hit a 21-month high in January.Beijing has tightened lending, requiring buyers of second homes to put up a downpayment of at least 40 percent, and they also face higher interest rates on their mortgage loans.

In Singapore, where housing prices have been heating up since last year, the government slapped additional duties on sellers who flip a residential property within a year of buying it.

Home buyers are also now limited to borrowing up to 80 percent of the property's value, instead of 90 percent.In densely packed Hong Kong, home to one of the world's most frenetic property markets, authorities are fretting about a surge of speculative money since late 2008.

Starting April, the territory will increase the stamp duty for sales of flats worth 20 million Hong Kong dollars (2.6 million US) or more from 3.75 percent to 4.25 percent. Prices of some Hong Kong luxury flats have returned to 1997 boom levels.

In October last year, Henderson Land Development said it had sold a luxury duplex apartment for a world record of 88,000 Hong Kong dollars (11,300 US) per square foot, or a price tag of 57 million US dollars.

Australia's central bank on Tuesday lifted interest rates afresh. One factor it cited was a "solid" increase in mortgages, "and dwelling prices have risen significantly over the past year".

Median house prices in Sydney rose 12.1 percent in 2009 and 18.5 percent in Melbourne, and observers said the rise was likely to continue.But Simon Vinson, head of Asian property at AMP Capital Investors, said he did not see the overall Asian market overheating.

"It's really only been the residential market that has experienced strong price growth. Commercial markets remain less buoyant," he said. The rise in residential property prices is just a "retracing" of some of the losses suffered by the sector during the global downturn, he said. "Is this a bubble? At the overall market level, we believe it is more a reversion," he said.

Analysts also said that unlike their counterparts in the West, Asian banks are not over-exposed to the property market. "Banks in Singapore, China and Hong Kong have been managing their risks quite well as the respective monetary authorities provide strict instructions on banking operations," said Chua Chor Hoon, head of Southeast Asia Research at property consultancy DTZ.Chua of Jones Lang LaSalle said that in Asia, "the share of mortgages as a proportion of total bank lending is still within healthy levels".

By AFP

JAKS to make debut in property development

KUALA LUMPUR : Water-infrastructure builder JAKS Resources Bhd is making a debut in property development under a collaboration with Star Publications (M) Bhd.

In a statement to Bursa Malaysia today, JAKs said its unit JAKS Island Circle Sdn Bhd had signed a joint development agreement with Star to undertake an estimated RM370 million mixed-project on a 2.5ha (24,568 square meters) leasehold site along Jalan University in Section 13, Petaling Jaya.

The site is adjacent to the Jaya One commercial centre.

"JAKS group has the expertise in the construction business and the proposed development will forge the JAKS group forward into the related industry of property development.

"The entire proposed development is expected to be completed within sixty months from the development commencement date," JAKS said in a statement.

Both Star and JAKS will jointly apply for banking facilities not exceeding RM 50 million which will be charged against the land to partly finance the proposed development.

By The EDGE Malaysia (by Chong Jin Hun)

Sime Darby Prop awaits approvals for Selangor Vision City

SHAH ALAM: Sime Darby Property Bhd is awaiting the approval from the state and federal governments on its plans for its proposed 10,861-acre (4,395ha) Selangor Vision City (SVC) development, said its managing director Tunku Datuk Putra Badlishah Tunku Annuar.

Speaking to reporters after a presentation of the SVC development to Selangor Menteri Besar Tan Sri Abdul Khalid Ibrahim here today, Tunku Badlishah said the proposal had taken a while as it was a massive project.

According to Sime Darby Property, 3,450 acres of SVC's 10,861 acres have already been developed.

The SVC is located along the Guthrie Corridor Expressway (GCE) from Lagong to Bukit Jelutong where 11,000 acres of the proposed 45,175 acre stretch belong to Sime Darby. It would also incorporate existing townships such as Subang Jaya and Bukit Jelutong.

At a separate event in i-City later, Khalid said he hoped to announce the status of the application by Sime Darby Property next month through the regular approval process.

The idea for the SVC was first mooted in 2007, while a masterplan, the Sime Darby Vision Valley (SDVV), was unveiled in 2009. The SDVV, comprising the SVC and the Negri Sembilan Vision City, is expected to generate a gross development value (GDV) of up to RM30 billion and span over two decades.

It has been reported that the entire SVC project will have an estimated GDV of RM10 billion and is envisioned to be the backbone of the northern Shah Alam and southern Selayang areas.

"Instead of doing this project piecemeal, we are trying to get the entire approval under a special area plan, which also involves getting approval at the federal level," said Tunku Badlishah. "There will be a meeting with the (federal planning) authorities on March 17, and once they are okay with this, we can move ahead with details."

He said Sime Darby Property was "always open" to joint-ventures with other developers, although it was not talking to any party now.

"The project is still in the concept stage and there has been no approval given yet, so we cannot move ahead until we get this," he said.

He said the two main priority areas of the SVC are the Bukit Jelutong City Centre and an environmentally-friendly township named Elmina East, which has an estimated GDV of RM6 billion.

By The EDGE Malaysia (by Melody Song & Max Koh)

Takaful Ikhlas to build up property role

Takaful Ikhlas Sdn Bhd, a wholly-owned subsidiary of MNRB Holdings Bhd, wants property to account for at least a fifth of its investment portfolio for the year ending March 31 2011.

The takaful operator recently made its maiden property investment when it paid RM87 million for its new corporate office, IKHLAS Point, in the fast-developing commercial area of Bangsar South, Kuala Lumpur.

Its president and chief executive officer, Datuk Syed Moheeb Syed Kamarulzaman, hopes the investment will be the beginning of its plans to broaden income through properties.

The investment portfolios of takaful operators are similar to their conventional counterparts' and include equity, cash and bonds.

"We are keen to buy rentable office premises that offer long-term sustainable revenue. However, we are cautious in our investment policy, which trends towards capital preservation," Syed Moheeb told reporters after a media tour of IKHLAS Point.

The company bought the building, which include two office blocks, using funds from contributions paid by policyholders, which number about 1.3 million currently.

"We are, in fact, renting the building from our policyholders. But, more importantly, the investment will ensure rental income for our policyholders," Syed Moheeb said.

"This is a really good investment for us because the yield is higher. We bought this building at a very low price during the recession," he said, adding that the property had already appreciated by more than 26 per cent in just one year.

The purchase was done through the company's Family Fund, which was given the approval by the operator's investment committee in July 2008.

Takaful Ikhlas' total assets currently stand at more than RM1.2 billion, out of which 60 per cent comes under its Family Fund and the balance under its Shareholder Fund and General Risk Fund.

Depending on the size of the investment, future property investments could be a mix of the funds available.

The company is also looking to house its existing 10 branches in its own buildings in future.

All the branches occupy rented premises at present.

Deputy Finance Minister Datuk Dr Awang Adek Hussin officially launched IKHLAS Point yesterday.

Takaful Ikhlas also spent another RM10 million to renovate the property, which has a build-up of 99,286 sq ft.

The company occupies all 10 floors in Tower 11A as well as another three floors in Tower 11, which also has 10 floors. The other seven floors are rented out.

By Business Times (by Rupinder Singh)

YTL on the prowl for hotels in Asia, Europe

YTL Corp Bhd, a diversified group with interests in property and power generation, is on the lookout for hotels and resorts in Asia-Pacific and Europe to grow its hospitality business.

The company, which is sitting on a huge cash reserve of more than RM10 billion, wants to buy completed properties, or build new ones, and manage more assets, the resort manager for Pangkor Laut Resort, Jeffrey Mong, said.

YTL, through leisure arm YTL Hotels, owns and manages hotels and resorts in Malaysia, Thailand, Indonesia and the UK.

By July, YTL will open a boutique hotel in France, called Muse, a new brand on an existing hotel in St Tropez which YTL bought in 2007.
"We are converting the hotel from 35 rooms to 15 suites, with plunge pools and a spa, introducing our Spa Village brand," Mong said in an interview with Business Times in Kuala Lumpur.

YTL's wholly-owned properties include the Cameron Highlands Resort; JW Marriot Hotel Kuala Lumpur; Spa Village Resort Tembok Bali in Bali, Indonesia; Villa Tassana and Villa 13 in Phuket, Thailand; and Bray House, Berkshire, in the UK.

It has stakes in the Majestic Hotel in Malacca and Kuala Lumpur, The Chedi in Phuket, Tanjong Jara Resort in Terengganu, and Vistana Hotel in Kuala Lumpur, Penang and Kuantan.

All the properties are managed by YTL Hotels, including Pangkor Laut Resort and The Ritz-Carlton, Kuala Lumpur, which are majority owned by the Yeoh family.

Its latest management contract is for the Swatch Art Peace Hotel, a seven-suite retail-cum-hotel project in Shanghai, China, which will open in August.

YTL will also manage the Pangkor Laut Luxury Resort, Residence & Spa Village, a multi-module development on The World in Dubai, the United Arab Emirates, from 2012.

On the home front, YTL will set up two resorts in Sabah at a cost of some RM200 million by the middle of next year.

YTL executive director Datuk Mark Yeoh Seok Kah had earlier told Business Times that it would open a resort on Pulau Gaya, the largest island in the Tunku Abdul Rahman Marine Park and the closest to downtown Kota Kinabalu, and on Pulau Tiga, off the western coast.

The two yet-to-be-named luxury resorts would have 132 and 75 luxury villas respectively.

"We will target travellers from Asia-Pacific and Europe. The islands have good diving spots. So we are confident of long-haul travellers," Mong said.

By Business Times

Australian property prices spiral upwards

SYDNEY: Australian real estate prices are rising strongly and show no signs of abating, analysts said yesterday, after weekly sales in one state hit a record A$1.025 billion (A$1 = RM3.04).

The Real Estate Institute of Victoria said last week saw "the largest dollar volume of transactions ever recorded" amid growing confidence in the economy as people took advantage of low interest rates.

"We've seen more physical sales in a week period, but never have they passed the billion dollar mark," research manager Robert Larocca told AFP.

"So that's partly a sign of how strong the market is and it's also a sign that people are spending more than they have in the past."
Larocca said the surge in sales was the result of historically low interest rates following the global financial crisis and the growing population in Melbourne, Australia's second largest city, outstripping available housing.

"People are confident, they are confident because the economy is going much better than they expected it to," he added.

David Airey, president of the Real Estate Institute of Australia, said Melbourne was one of the country's strongest markets but noted that Australian property prices were strong and rising.

By AFP

New highway to further drive Selangor growth

The RM1 billion Kuala Lumpur-Kuala Selangor Expressway project, set to open in June next year, will benefit several housing and industrial projects in Selangor.

Projects and towns that may benefit from KLS include Kundang Jaya Industrial Park, Bandar Baru Kundang, Ijok, Bandar Tasik Puteri, Rawang and Sg Buloh.

KLS is a 33km two-lane dual carriageway with five interchanges, three toll plazas as well as a rest and service area, connecting Assam Jawa near Kua-la Selangor to Templer's Park near Rawang.

KL-Kuala Selangor Expressway Bhd (KLSEB) chairman Datuk Mohamad Razali Othman said the toll road will be ready by April next year and open to public in June.

It is expected to spur ongoing projects along the stretch and open up new developments, he said.
KLSEB, an equal joint venture between Bina Puri Holdings Bhd, a construction group and privately-held Arena Irama Sdn Bhd, holds a 40-year concession to maintain and operate KLS, previously known as Assam Jawa-Templer Park Highway or LATAR.

The highway will cut travelling time from Kuala Lumpur to Kuala Selangor and vice versa, to just 30 minutes from two hours currently.

"We are confident in this development and hope to recoup our investments for the project within the next 15 to 20 years," he told Business Times.

KLS provides alternatives to Federal Route 54 and to other existing roads along the stretch.

It was supposed to start in 1997 and completed by the year 2000 after Bina Puri signed a 40-year concession agreement with the government.

But the project was put on the back burner as the company could not secure financing due to the Asian financial crisis.

The government also decided to put on hold several mega infrastructure projects.

KLS was revived in 2008 after Bina Puri partnered Arena Irama and awarded the design-and-build contract for package 1 (Assam Jawa to Kundang) and package 2 (Kundang to Taman Rimba Templer), worth a total RM958 million to Mudajaya Corp Bhd.

KLSEB has secured a RM740 million loan from Bank Pembangunan Malaysia Bhd and a RM300 million loan from Islamic Development Bank for the project.

KLS was incorporated in 1996 with paid-up capital of RM5 million by 1997. The shareholding then was 60 per cent held by Bina Puri and 40 per cent by Arena Irama.

By Business Times

Seberang Prai becomes popular

Artist impression of the Pearl Garden project, launched last September, sold about 70% in a matter of weeks.

The Seberang Prai residential property market is facing robust demand in both the landed and high-rise segments.

Two key developers in Seberang Prai have lined up for launching, in the first quarter of this year, some 486 units of landed residential properties with an estimated gross sales value of RM156mil to meet the rising needs of those with the disposable income to upgrade their lifestyle.

Over the past two years, the investments brought in by multinational corporations such as Ibiden, Honeywell International, National Instruments, St Jude Medical, and First Solar have created an executive class of home seekers.

The projects are the second and third phases of Pearl Garden, with a gross sales value of RM71mil, developed by Tambun Indah Development Sdn Bhd and Phase 2 of RM85mil Bukit Mertajam Utama by DNP Land Sdn Bhd.

The Pearl Garden, a joint venture project with Mutiara Goodyear Development Bhd, comprises 446 units of double-storey terraced, semi-detached, and bungalow houses on a 67.9-acre land in Simpang Ampat, about 20km from the Penang Bridge.

The first phase, launched last September, was about 70% sold (175 units) in a matter of weeks.

“Most of our buyers are those who want to own landed property but could not do so on the island. The second and third phases, comprising 271 double-storey terraced and semi-detached houses, was launched mid-February,” says Tambun Indah general manager Teh Theng Theng.

The Pearl Garden is a gated and guarded project, with 24-hour security, and comes with a double-storey clubhouse and recreational facilities such as a swimming pool, a gymnasium, jogging track, and a community hall. The selling price for the properties ranged between RM238,000 and RM512,000.

“We are also arranging for a special financing package that provides 90% financing and allows purchasers to pay the 10% instalments over a 12-month period. Depending on the size and type of unit, the monthly instalment starts from RM400 per month,” Teh adds.

The RM85mil Bukit Mertajam Utama, comprising 215 units of double-storey terraced and semi-detached houses, is located on a 56-acre site in Bukit Mertajam, about 3km from the Penang Bridge.

The terraced and semi-detached houses have respective built-up areas of 1,900sq ft and 2,700sq ft priced at RM328,000 and RM468,000.

DNP Land (North) general manager K.C. Tan says about 60% of Bukit Mertajam Utama, scheduled for official launch in March, were sold during the soft launch last month.

“Landed properties in Seberang Prai, which are priced about 40% lower than landed homes on the island, will always find a strong market in the young executives with a combined household income of over RM6,000,” he says.

As for the high-rise condominium market, that too seems to be getting increasingly popular in Seberang Prai, a territory known for its affordable landed residential homes.


Fook Tone Huat ... Most mainland buyers look for properties priced 40% below the landed properties on the island.

More than 10 years ago, high-rise residential properties were not that sought after, Henry Butcher Malaysia (Seberang Prai) senior manager Fook Tone Huat tells StarBizWeek.

“Most of the buyers on the mainland looked for landed homes which were priced about 40% below the landed properties on the island.

“About three years ago, high-rise properties in Jalan Raja Uda and Jalan Telaga Air, in Butterworth, started to do well. The original selling price, which started off from about RM160,000 for a unit with over 1,000sq ft in built-up area, has risen over 30% over the past three years to around RM210,000 and RM230,000 today,” he says.

The Cassia Resort Condominiums by Island LandCap Properties and the Vista Bay Condominiums by Cendana Realty Sdn Bhd are two such projects launched three years ago in the heart of Butterworth town that has seen such appreciation.

For this reason, there are already three high-rise residential projects that will be launched by the middle of this year; Island LandCap’s Pinang Laguna Water Park Condo and Airmas Development’s apartment Telaga Emas by the first quarter of this year and Dahlia Park in mid-2010.

The largest of these scheme is the RM160mil Pinang Laguna Water Park Condo, located in Seberang Jaya, comprising about 1,000 units, with over 1,000sq ft in built-up areas, priced from RM180,000 onwards.

The Dahlia Park, located near Jalan Bagan Luar, at the heart of Butterworth town, comprises 140 condominium units with built-up areas ranging between 1,307sq ft and 1,726 sq ft. These will be priced from RM190,000 onwards. Dahlia Park is equipped with comprehensive clubhouse facilities.

The Apartment Telaga Emas, located at Jalan Telaga Air, Butterworth, comprises 144 units with built-up areas of 1,327 sq ft priced from RM197,000 onwards. The scheme is equipped with amenities such as a swimming pool, sauna and round-the-clock security.

“High-rise properties have become popular because of their affordable pricing, and because of the facilities that come with them. In comparison, landed properties, which have been appreciating at about 10% per annum, are now priced over RM300,000 for a double-storey terraced unit with built-up area of 1,600sq ft and a 1,400sq ft land area.

“This means that only households, with a combined income of over RM5,000, and who are willing to borrow to the maximum, can take up loans for such housing projects. Landed property prices are expected to go up by another 10% this year,” he says.


Oon Weng Boon ... High-rise properties could sell well if they are strategically located.

Island LandCap Properties executive chairman Oon Weng Boon says the high-rise properties in Butterworth could sell well if they are strategically located and offer a full range of recreational facilities.

“Our Cassia Resort Condominium sold well because it was centrally located in Butterworth town, on Jalan Raja Uda, and had various clubhouse facilities. Furthermore, the pricing of Cassia Resort Condominium which was around RM160,000 then, was affordable for many households with a combined income between RM3,500 and RM4,000,” he says.

Oon says the Pinang Laguna Water Park Condo project was the group’s first attempt to infuse theme-park concept with condominium lifestyle living in Seberang Prai.

“This adds value to the project, making it more attractive to house buyers, especially those with families. During the soft launch preview last month, we have already received bookings for about 50% of the first phase, comprising 350 condominiums. The second phase is scheduled for launching in the second half of this year,” he says.

By The Star (by David Tan)

The Chinese love for properties

China, Hong Kong and Singapore's buoyant property markets.

AS US gaming giant Las Vegas Sands goes hither and thither in preparation for what it describes as the “most expensive stand-alone integrated resort-property ever built” scheduled in late April this year, all eyes are on the effect on the city state property sector.

The opening of the US$5.5bil (RM18.7bil) Marina Bay Sands casino resort complex will come two months after the start of gaming operations at Resorts World Sentosa, a development owned by Malaysia’s Genting Group.

Las Vegas Sands says the 963-room hotel, part of the shopping mall and convention centre will also open together with the casino.

The second phase of the opening slated for June 23 will include a massive sky garden on top of the development’s three hotels as well as more retailers, it said.

Its chairman and chief executive Sheldon Adelson says their dedication to complete the project never wavered despite the challenging economic climate.

Construction of the complex – the US gaming firm’s first development in Southeast Asia – had been delayed by materials shortages and financial difficulties faced by subcontractors due to the recent global economic slump.

As Asia climbs out of the economic quagmire which has engulfed the world, the property radar in this part of the world have been far more rosy than that of the West.

Singapore’s property sector, as with Hong Kong’s and China’s, have piqued quite a bit of interest among Asians themselves and watched with envy in the West.

Known as the exotic Far East by the West, property prices in this part of the world have remained excitingly buoyant by contrast, so much so that the Singapore government has recently imposed a levy on people selling residential properties within a year from the date of purchase.

The city-state also lowered the loan-to-value limit to 80% from 90% for all housing loans provided by financial institutions.

The measures are “aimed at pre-empting the formation of a property bubble,” Adrian Chua, an analyst at DBS Group Holdings Ltd writes in a note.

“The earlier-than-expected introduction of measures signals that more could come should prices and volumes not revert back to sustainable levels.”

Singapore’s steps come after the island’s private home sales last year were just shy of the 2007 record, helped by the nation’s economic recovery. A total of 14,688 homes were sold last year, compared with the record 14,811 transacted in 2007, according to government data.

Private residential prices rose 7.3% in the fourth quarter from the previous three months, extending the biggest rally in 28 years, based on data from the Urban Redevelopment Authority. The government’s property price index surged 15.8% in the third quarter.

China’s property market is no less exciting. Having grown by leaps and bounds, it will probably go through a “more meaningful correction” this year because the price gains in 2009 aren’t sustainable, Christopher Lee, corporate ratings director at Standard & Poor’s, says.

The outlook for the Chinese market is “neutral” for this year, Bei Fu, an associate director of corporate ratings at S&P, says on a conference call with Lee this week.

“The middle of 2010 could be a potential turning point for many developers,” Fu says. “A combination of slower demand, higher supply and various government initiatives will dampen market sentiment.”

China’s property prices has surged 9.5% in January, the most in 21 months, as total new loans have surged to 1.39 trillion yuan (US$204bil), more than in the previous three months combined.

The China Banking Regulatory Commission told banks last month to “strictly” follow property lending policies.

Investors tend to “sit on the sideline” in anticipation of more tightening measures to curb property price gains this year, Lee says.

Gradual and cautious

Beijing will scrap some home-purchase incentives after the jump in prices, reducing the scope of a housing sales-tax exemption and enforcing a 40% down-payment requirement for second homes, the capital’s Municipal Commission of Housing and Urban-Rural Development says in a statement this week.

The People’s Bank of China raised the reserve requirement by 50 basis points for the second time this year just before Chinese New Year to slow bank lending. The change came into effect this week.

The central bank says it wants to gradually normalise monetary conditions from a “crisis mode” after gross domestic product grew 10.7% in the fourth quarter, the fastest pace in two years.

“Policy introduction this year will be in a gradual and cautious manner,” Fu says. “Stability will be the focus.”

The Chinese government will increase supply of subsidised public housing this year to provide affordable accommodation for people with lower incomes, and there will be a “surprise” in the number of available luxury homes by the middle of this year, when projects started one year ago are completed, leading to stronger competition among developers, she says.

Industry consolidation

“Bigger and stronger property players will do even better as they have the scale and financial resources to grow, and smaller companies will find the market condition more challenging,” Hong Kong-based Fu says. “We expect to see more merger and acquisition activities in the sector.”

Over in Hong Kong, developers are optimistic the city’s government will maintain its “benign” stance toward the industry, and that borrowing costs will remain low, sustaining real estate demand.

“The government has kept a rather benign stance towards the Hong Kong property sector,” Macquarie Group Ltd analysts led by Chris Cheng says in a research report.

“Nothing significantly new was introduced in relation to property” in financial secretary John Tsang’s budget speech earlier in the week.

The city has announced that it will raise the stamp duty on homes selling for more than HK$20mil (US$2.57mil) to 4.25 % from 3.75%.

This is in response to US Federal Reserve chairman Ben S. Bernanke’s remark that a slack labour market and low inflation will allow the Federal Open Market Committee to keep the benchmark lending rate low “for an extended period.”

The Hong Kong Monetary Authority typically tracks the Fed’s interest rate movements because the city’s currency is pegged to the dollar. The lowest mortgage rates in at least two decades and an influx of overseas capital equivalent to more than a third of Hong Kong’s annual gross domestic product helped fuel a 29% gain in property prices last year.

The raised transaction tax on luxury homes, the first increase since 1999, will only affect about 2% of the property market. Of 110,000 Hong Kong residential sales in 2009, about 2,000 sold for more than HK$20mil, according to realty company Midland Holdings Ltd.

By the way, all three countries are predominantly Chinese. – Agencies

By The Star

Lessons from recent tragedies

Governing authorities should work towards a construction benchmark

The need for a high quality culture to be adopted for all construction projects, whether they are public or private structures or facilities, cannot be over emphasised as the people’s safety should be of paramount importance.

The fact that there have been a spate of “problem” projects with structural problems or certified unfit for occupancy shows that a conscious quality culture is still grossly missing among some industry players.

From faulty infrastructure projects to poorly constructed public buildings and amenities, the list includes the collapse of the Kuala Terengganu stadium roof and the roof of the Kuala Berang express bus and taxi terminal, the RM18mil Batu Burok Aquatic Complex and the RM123mil Sultan Mahmud Airport terminal.

Shoddy workmanship and the use of sub-standard building materials have been found to be the major contributor of most of these failed projects.

There is also the issue of proper maintenance and whether these public structures are periodically maintained to ensure that they are in tip top condition.

Besides the loss of lives like the three schoolchildren attending the 1Malaysia camp in Kuala Dipang who drowned after the suspension bridge they were on collapsed last October, such mishaps will also tarnish the image of the country and the whole industry.

It is important to ensure that personals of the governing authorities, including the Public Works Department, are well equipped and properly trained to ensure they keep abreast of latest industry standards and needs to conduct their supervisory role responsibly.

Industry practitioners should take it upon themselves to promote a conscious quality culture in all their projects.

There are many benefits that can be reaped from having quality construction standards that include significantly reducing the incidents of structural and architectural defects.

The adoption of high international standards in our building and construction projects is a good platform for local players to take their developments international.

For a start, industry players and the governing authorities should work towards a minimum set of quality standards that need to be adhered to by the building fraternity, including contractors.

Although there is a local quality system, the Quality Assessment System in Construction introduced by the Construction Industry Development Board since 2006 to evaluate the quality and workmanship of construction projects in the country, it is not compulsory for the building fraternity to adopt them.

The adoption of such standards should not be just to win government contracts but to ensure a strong quality culture prevail among industry practitioners.

In Singapore, it is compulsory for all public amenities and government buildings to adhere to the strict guidelines of the Construction Quality Assessment System (Conquas).

Its Building and Construction Authority conducts intensive training camps for developers, contractors, and building engineers, to adopt these stringent quality standards in their projects.

The fact that there are 47 Malaysian developers and contractors who are adopting Conquas shows that there are local players that have embraced the quality culture seriously.

It is important to build on this foundation and cast the net wider to include all the industry players, whether big or small.

A poor maintenance culture is also one of the major flaws in our society today that has contributed to the poor state of affairs in many of our buildings and public facilities.

To ensure greater durability and sustainability of these facilities, there is a need to promote a world-class maintenance culture among the people and the relevant authorities.

There is no point having great buildings or projects if they are not properly maintained.

For those who own strata-titled buildings, it is mandatory for them to make monthly contribution to a common maintenance fund to ensure the proper upkeep and maintenance of the common facilities.

The maintenance is the responsibility of the joint management body (JMB), of which owners are members.

It is the responsibility of owners to pay the maintenance fees.

Likewise, the respective local councils and authorities should also ensure that all public facilities are properly maintained to ensure they are safe to the users at all times.

·Deputy news editor Angie Ng believes selflessness is the way to go to promote a caring society.

By The Star

See Hoy Chan nursing medical ambition

See Hoy Chan is now talking to three foreign hospital operators to jointly develop a medical centre in Bandar Utama township

See Hoy Chan Holdings Group (SHC), controlled by the Teo family, is said to be in talks with several foreign hospital operators to jointly develop a medical centre in its highly successful Bandar Utama township in Petaling Jaya, Selangor.

"Several international operators have expressed interest in forming a joint venture with SHC to open a medical centre in Bandar Utama. SHC is now talking to three of them," a source told Business Times.

The source added that SHC and the foreign companies were looking at possible models for the partnership.

It is undecided if the foreign player will take on sole management of the medical centre to be built by SHC or both will jointly manage it, with the foreign partner having a stake in the business.
"The medical centre in Bandar Utama could be up and operational within three years of obtaining all the approvals," the source said, adding that regulatory approvals had yet to be sought.

Foreign hospital operators with a presence in the country include Singapore's Parkway Holdings and Health Management International (HMI), the US-based Columbia Asia and Austria's Vamed.

It is understood that at least one of the players SHC is talking to has no representation here as yet.

Industry players said that this operator is world renowned for its medical facilities and expertise, and is particularly successful in the region for medical tourism.

When contacted by Business Times, SHC director Datuk Teo Chiang Kok said that talks were "still preliminary". He did not elaborate.

In an interview in 2006, Teo had said that the Bandar Utama master plan would include setting up a medical centre and a retirement village.

Some 4.86ha near 1Utama's Phase 2 shopping complex has been allocated for this purpose.

At that time, Teo had said that the medical centre would offer maternity and paediatric care, while the retirement home would cater for residents in the area.

The group's plans for a medical centre were said to have been inspired by Teo's father, Tan Sri Teo Soo Cheng, given his involvement in the Tung Shin Hospital in Jalan Pudu, Kuala Lumpur.

In April last year, Prime Minister Datuk Seri Najib Razak announced that the government was lifting the 30 per cent Bumiputera equity rule for 27 service sub-sectors, including health services. However, it is unclear if that includes hospitals and medical centres.

By Business Times

UEM Land: Singapore's new resorts a boon to Nusajaya

The opening of Singapore's two casino resorts is expected to accelerate growth at Nusajaya, with 2012 targeted as the "tipping point" for the Johor project, said UEM Land Holdings Bhd chief.

Managing director and chief executive officer Wan Abdullah Wan Ibrahim said Resorts World Sentosa and Marina Bay Sands will help boost the number of visitors to Nusajaya's own indoor theme park and Legoland, placing Johor on the world map.

"Visitors to the two resorts are not going to gamble 24/7 (24 hours a day, seven days a week). They will visit Universal Studio and we expect them to come here as we are building Legoland and an indoor theme park. We are happy to see the (Singapore) casinos ready," Wan Abdullah told Business Times after the company's shareholders' meeting in Petaling Jaya, Selangor, yesterday.

"For us, anything good that comes up in Singapore will further enhance developments at Nusajaya. Three years ago Nusajaya was a dream, concept and plan. Today it is a reality," he added.
He expects a new wave of development to hit Nusajaya in 2012 as its current on-going projects would have reached their peak.

Among the projects due to complete in 2012 are the coastal highway linking Johor Baru, quarters for state government staff and federal government agency complexes at Kota Iskandar, Legoland, as well as an indoor theme park at Puteri Harbour.

Others include the 70-bed hospital by Columbia Asia Group, UK's Newcastle University of Medicine, Marlboro College Malaysia, a British independent co-educational boarding school for children between 13 and 18 years old, and the Sri KDU Smart School.

UEM Land is the developer of Nusajaya's main features such as the state administration complexes, Puteri Harbour, the Southern Industrial and Logistics Cluster (SILC), a healthpark and residences.

Wan Abdullah said there will be a good mix of new medium, high-end and luxury homes in Nusajaya, and the entry of international bio-technology companies in SILC going forward.

UEM Land, 77.14 per cent-controlled by UEM Group Bhd, expects to do better this year, attributed by existing products and the completion of the current developments, Wan Abdullah said.

By Business Times

City Developments Q4 net profit up 77pc

SINGAPORE: City Developments , Southeast Asia’s second-largest property firm, posted yesterday a 76.7 per cent rise in fourth-quarter net profit, helped by strong Singapore residential property prices.

CityDev reported a net profit of S$176.7 million (S$1 = RM2.42) for the three month ended December, up from S$100 million a year ago. The earnings beat the S$131 million consensus estimate from Thomson Reuters.

By Business Times