Bolton buys land in Ukay Perdana for RM72m

Property developer Bolton Bhd announced today that it has purchased 9.192 hectares (22.98 acres) of leasehold land in Ukay Perdana, Ampang, Selangor, for RM72 million.

Executive chairman Datuk Mohamed Azman Yahya said the acquisition was in line with the company's strategy to expand its landbank with strategic acquisitions of prime parcels in the Klang Valley.

"We intend to develop this site into a modern, thriving community and we are optimistic about the demand for high-end residential units here," the company said in a statement today.

Bolton, through its sub-subsidiary Ketapang Realty Sdn Bhd, entered into a conditional sale and purchase agreement with LP Heights Sdn Bhd to acquire the land which comes with a development order for the development of 184 residential units comprising semi-detached and terraced houses, including town villas.

Mohamed Azman said the company was planning to seek approval for layout amendment of the development order. He said the revised plan was expected to yield an estimated gross development value of about RM220 million.

The project would begin upon obtaining all the approvals from the relevant authorities with an estimated development period of three years, he added.

By Bernama

OCBC sees strong growth in mortgages

OCBC Bank (Malaysia) Bhd expects its mortgage portfolio to hit high double digits this year compared to 12 per cent last year, said a company executive.

"During the first half, mortgages recorded a high double digit and we think this will continue for the rest of the year," head of Consumer Financial Services, Charles Sik told pressmen after the launch of OCBC Regular Premium Life Insurance Financing (LIF) facility in Kuala Lumpur yesterday.

Home loan made up about RM10 billion of the bank's RM32.6 billion gross loans outstanding last year.

The bank's gross loan outstanding increased by 5 per cent on the back of assets valued at RM53 billion as at December 2009.

Sik said that OCBC mortgage lending holds a 5 per cent market share based on outstanding balance while on new business it commands up to 6 per cent. Last year, it recorded RM10 billion in home mortgages.

Explaining the facility, he said LIF was designed for those who wish to take up a more comprehensive life insurance policy which goes beyond protection linked to the purchase of a home.

"Basically, customers do not need to come out with any money upfront, whereas in usual practice the customers need to pay premium and take loan separately from the bank," he explained.

With LIF, customers would be able to subscribe to the scheme and finance it through OCBC home loan mortgage.

Meanwhile, Great Eastern director and chief executive officer Koh Yaw Hui said LIF will be available through its 17,000 agents nationwide.

"With we are confident LIF will be both well distributed and well-received," Koh said.

Great Eastern bancassurance partnership with OCBC since January to July this year has contributed 10 per cent or RM58 million to the insurer's new business mortgage-related insurance.

"Our partnership with OCBC just started last year but we already saw 135 per cent growth in total new business premium during the period from January to July.

"And there is room to grow. This year, we expect to see contribution of between 12 per cent and 15 per cent from OCBC," Koh added.

By Business Times

Strong take-up for Goodwill Polygon's Qube

Property developer Goodwill Polygon Sdn Bhd has sold 70 per cent of its new commercial project called Qube in Shah Alam, Selangor, taking advantage of a shortage of such developments in the city.

The 17-storey office building, with retail lots, has a gross development value of RM130 million and is due to be ready by August 2013.

"Most of the non-Bumiputera lots were sold out; the majority lots left are Bumiputera lots. We really hope they will be taken up soon," said CASB Group of Companies director Prudence Wong. Goodwill Polygon is the property arm of CASB Group.

According to a survey conducted by CH Williams Talhara & Wong, there has been no new supply of retail-cum-business development centres in Shah Alam since 2000. Some 580,000 people live in Shah Alam and there are about 183,000 small businesses in the city.

"Qube will cater to the needs of business owners looking for a more prominent corporate address in Shah Alam. The survey shows that the demand is there for this type of development," she said.

The current office blocks located around Shah Alam are also 98 per cent occupied. The development of Qube 2 is already in the pipeline, and it is expected to be launched as early as next year.

The development sits on a 1.4ha site, of which 0.7ha is for the development of the first phase of Qube and the remaining for its second building.

The size of Qube business suites range between 548 sq ft and 2,300 sq ft each and prices start from RM450 per sq ft onwards. Meanwhile, the retail lots will be leased out for rental income.

Yesterday, the company organised a property seminar "Maximise Profits for Your Business" in Shah Alam to educate business owners and investors on property investment. Four renowned property gurus, Ho Chin Soon, Jeevam Sahadeevan, Master David Koh and Milan Doshi spoke at the event.

By Business Times

Aiming for business with Qube

Goodwill Polygon Sdn Bhd officially launched its new commercial development project QUBE today at a local hotel in Shah Alam. Strategically located in the heart of Shah Alam, QUBE is set to become the sought after business address in Klang Valley with its iconic structure designed to deliver the highest level of architectural visibility and style.

The QUBE business suites is one of its kind which redefines luxury and incorporates a harmonious blend of state-of-the-art technology and cutting edge architectural design, which each element is enriched to provide top-class quality for buyers; a definite promise in exceeding their expectations.

Located in the upcoming growth area in Klang Valley, QUBE has been skillfully designed and will feature impeccable amenities, a higher level of security and exude a sophisticated urban ambience. This intelligent planning comes with eco-friendly features that create a conducive working environment which leads to higher inspiration, motivation and harmony.

Besides this, the building will also be equipped with high-tech facilities to ensure that occupants are able to work in a safe, convenient and comfortable environment.

“We care about our clients’ business and designed QUBE according to feng shui principles by engaging renowned expert Professor Master David Koh to produce an environment where people working in it can be more productive and achieve more with the same effort, and with less stress” said CASB Group of Companies director Prudence Wong.

“In terms of investments, investors do not have to worry as we assure you a rock-solid chance in generating your income. This is due to limited stand alone purpose-built office buildings in Shah Alam which will definitely increase the demand for office spaces, making QUBE very attractive in capital appreciation” added Wong.

Convenience is certainly a great benefit for those working at the QUBE as places to rest and relax after a hard day of work is just around the corner. There are plenty of F&B cafes, restaurants and hypermarkets all situated within a few minutes from the QUBE which will certainly attract bigger crowds to your business.

Goodwill Polygon Sdn. Bhd is one of the property arms’ of CASB Group of Companies. The group’s main mission is to be committed to a world of wealth where there is abundant cash flow and outstanding capital appreciation for their investor and shareholders, all done with pure integrity whereas their vision is to be the leading, most successful and profitable company in the accumulation of wealth through prudent real investment.

Goodwill Polygon understands perfectly that investors would like to enrich their investment with top class quality to complement the overall experience at the QUBE, which is why the group placed immense focus in making QUBE the epitome of a luxurious yet comfortable business location, home away from home with features such as; eco-friendly, high-tech facilities, promising capital appreciation, strategic location, revolutionary design and excellent feng shui.

The potential of QUBE is realized in the Latest Development Survey of Shah Alam provided by CH Williams which reveals that there has been no new supply of incoming buildings around the Shah Alam area since year 2000. In addition, the current office blocks around the area have high occupancy rates of 98%.

In conjunction with the Official Grand Launch, Goodwill Polygon Sdn. Bhd will be organizing a QUBE Executive Event “Maximise Profits for Your Business”. The objective of organizing this seminar is to educate business owners and investors about how to maximize their business profits through branding, location and Feng Shui. Four top Gurus: Grand master David Koh, Jeevan Sahadeevan, Ho Chin Soon and Milan Doshi will be sharing their secrets during this full day seminar.

For both buyers and investors who are interested to view the show unit please call 03-55188333 or check out www.eco-techqube.com to enjoy early bird discounts.

By The Star

Menara Taipan Star in Golden Triangle for sale

Sited behind Shangri-La Hotel Kuala Lumpur and UBN Apartments, the property comprising an 18-storey office building and a 25-storey apartment block is going for an estimated RM306 million.

Menara Taipan Star in Jalan P. Ramlee in Kuala Lumpur's so-called Golden Triangle, has been put up for sale for an estimated RM306 million.

Located behind Shangri-La Hotel Kuala Lumpur and UBN Apartments, the property comprises an 18-storey office building and a 25-storey apartment block.

According to international property consultant Rahim & Co's website, the property is freehold and has a land area of 2,789 sq m.

The office building has a gross floor area of 198,571 sq ft and a net lettable area of 131,184 sq ft.

The buildings belong to Taipan Star Sdn Bhd and the people behind Taipan Star are three directors of SHL Consolidated Bhd.

Sources said the property had been up for sale for sometime.

Rahim & Co did not give additional information apart from what was available on the website.

SHL's annual report for the financial year ended March 31 2009 said the directors of the listed company - Tengku Abdul Samad Shah Sultan Salahuddin Abdul Aziz Shah, Datuk Yap Teiong Choon and Datuk Ir Yap Chong Lee - have an interest in Taipan Star.

Tengku Abdul Samad is SHL chairman, while the other two are its executive directors.

SHL has had a 15-year business relationship with Taipan Star, while Menara Taipan is about five years old. The building has 213 parking bays spread over seven basement levels.

The 50 apartment units range between 2,000 sq ft and 5,610 sq ft.

According to the website, Menara Taipan Star is charged to OCBC Bank.

By Business Times

MRCB sees 6-7pc yearly return from Nu Sentral

MALAYSIAN Resources Corp Bhd (MRCB) expects an annual return of 6-7 per cent from its RM1 billion Nu Sentral retail mall at Kuala Lumpur Sentral in Brickfields, Kuala Lumpur.

Chief executive officer Mohamed Razeek Hussain is confident all 270 retail lots will be taken up before its completion in early 2012.

However, he declined to say how much the rental rates for the 1.2 million sq ft mall are.

"We have a lot of enquiries but we are being selective as we want to control the tenant mix. The lease will be reasonable and not as high as Suria KLCC. We expect up to RM70 million in revenue per annum," he said at the Nu Sentral retail launch last Friday.

MRCB has named Parkson department store and Golden Screen Cinemas as its anchor tenants, each taking 138,000 sq ft and 50,000 sq ft of space.

Nu Sentral will undergo both Singapore's BCA Green Mark (compliance) and Malaysia's Green Building Index (certification), making it the first green retail mall in Malaysia.

"The real estate mantra is always location, location, location, which we already have. What we are saying is position, position, position, setting a new standard and experience. We expect the mall to attract a large number of people," Mohamed Razeek said.

The seven-storey mall is part of the RM1.4 billion Lot G integrated development, a 51:49 per cent joint venture between MRCB and Pelaburan Hartanah Bhd (PHB).

The other component at Lot G is a 27-storey office tower with net lettable area of 450,000 sq ft. The building is owned by PHB.

PHB managing director/chief executive officer Kamalul Arifin Othman said the office tower will be leased to a single tenant.

PHB is in talks with a few parties but he declined to name them. MRCB has some RM8 billion worth of on-going projects at KL Sentral.

By Business Times

Gaming, property units to drive MPHB revenue

Multi-Purpose Holdings Bhd (MPHB) expects revenue to hit the RM5 billion mark in the next five years, driven by its gaming and property development business, says its chief.

In fiscal year March 31 2010, MPHB recorded net profit of RM327 million on revenue of RM3.3 billion.

Some 80 per cent of the revenue came from the gaming business via its 51 per cent stake in Magnum Holdings Sdn Bhd. The rest were from property, insurance, stockbroking and investment holding.

Managing director Datuk Lau Kim Khoon @ Surin Upatkoon said its property division has five projects worth over RM10 billion on the table to roll out by next year.

The biggest is the redevelopment project in Makati City in the Philippines. It plans to convert a 22ha horseracing track into an integrated development, featuring commercial, residential and retail space as well as a hotel.

MPHB has a 40 per cent stake in listed Philippine Racing Club Inc that owns the race track, which has been relocated to Manila.

Lau said in an interview with Business Times recently that the project is estimated to worth over RM5 billion.

"We hope to start construction next year. We are bullish on the development and sales as it is located next to the Makati financial district," he said.

At present, MPHB has three projects worth some RM300 million; two residential developments in Penang and one in Pudu, Kuala Lumpur.

By the middle of next year, it targets to launch a RM3 billion project on a 2.4ha site in Kuala Lumpur.

The seven-year project will comprise a one million sq ft retail podium, 50-storey luxury condominiums, a 35-storey four-star hotel and a 30-storey office tower. MPHB will add one more office tower and a residence complex at a later stage.

"We will retain the hotel, retail podium and one commercial block. Property investment will be a growing business for us," Lau said.

The project will be linked to Berjaya Times Square, Sg Wang Plaza, the new international financial district and Pasar Rakyat redevelopment in Imbi.

MPHB has three joint ventures with Bandaraya Development Bhd to undertake medium- to high-end residential projects worth RM1 billion on land its owns in Rawang and Mimaland in Selangor and in Penang.

The companies are discussing details of the joint-venture agreements, Lau said.

By Business Times

Malls, more malls everywhere

With the opening of 20 malls in the Klang Valley with a total net floor area of 4.4 million sq ft this year, the retail property market is likely to face an oversupply situation with pressure on rental rates, property consultants say.

Many shopping mall projects that were put on hold are back on track, and shoppers can expect to see a plethora of new retail centres on the horizon, especially within the Klang Valley area, comprising Kuala Lumpur, Selangor and Putrajaya.

According to statistics by the National Property Information Centre, as at March 2010, there were currently 49.98 million sq ft of existing retail space within the Klang Valley. Another 7.18 million sq ft is under development and 7.5 million sq ft of new space under planning.

Henry Butcher Retail managing director Tan Hai Hsin believes the new malls that are coming on stream will create an oversupply situation in the market.

“With the completion of at least 20 retail centres this year, the retail property market share will be squeezed,” Tan says, adding that the negative impact will be focused on certain locations with multiple malls.

“For example, the retail market in Cheras will be even more competitive when at least five new retail centres enter the market this year. In Subang, existing shopping centres are facing more challenges with four new players.”

He says newly-completed shopping centres will face pressure on rental rates.

“There are indeed too many malls within the Klang Valley. Newly-opened shopping centres in the last few years have been facing problems in securing sufficient tenants and shoppers. Many of their problems are due to market saturation, not the financial crisis.”

However, not all new malls will be casualties, even when there are already other existing, established shopping centres within the vicinity, says Malaysian Association for Shopping & Highrise Complex Management member Richard Chan.

“The Wangsa Walk Mall was opened in August last year in Wangsa Maju. Despite several prominent shopping centres (Jusco, Giant and Carrefour) already established within the area, retail space for the new mall (Wangsa Walk) has been fully taken-up,” he says.

A new mall can always be successful if it can meet the needs and wants of customers that were not met by existing shopping centres, he says, adding: “Malls are taken up because of a retail gap that cannot be met by the other malls. If you can fill up this gap, to the point of attracting the crowd from far away areas and meet the demands of the people, it will be a success.”

Chan cites KB Mall in Kota Baru, Kelantan, which is attracting customers from as far as Thailand.

“People from Thailand are going to the mall to get things that they cannot get in their own areas,” he says.


Elvin Fernandez feels mall developers should conduct a study and understand the market before constructing.

Khong & Jaafar Sdn Bhd managing director Elvin Fernandez believes that the success of potential new shopping centres is dependent on two key factors – their management and locations.

“Mall developers should conduct a study and understand the market before constructing.

Sometimes, they (the developers) will own part of the mall, say 50%, and divest the rest to different parties to manage. When that happens, you lose control,” he says.

Chan concurs that the number one criteria for the success of a shopping mall is management, rather than location. He says the next most important requirement is “accessibility.”

“The Mid Valley Megamall in Kuala Lumpur is strategically located but would it be successful if it didn’t have all those roads surrounding it? Your shopping centre might be in a good location but it would be pointless if it can’t draw the crowds,” he adds.

Fernandez says rental rates of downtown shopping centres (namely Suria KLCC and Pavilion in Kuala Lumpur) and suburban shopping centres (like Mid Valley in Kuala Lumpur, One Utama and Sunway Pyramid in Selangor) have been holding steady for a while.

Even during the global economic crisis, rates remained fairly steady and we expect them to remain steady for the remainder of 2010, he says, adding that he does not expect a “shoot-up” in rates.

According to Fernandez, rent for average prime space at downtown and suburban shopping centres are currently averaging RM50-RM60 per sq ft and RM30-RM35 per sq ft respectively.

“(Healthy) consumer spending and (good) tourism levels have managed to help keep the (retail) rates up,” he says.

With the improved economic conditions, the outlook for the retail sub-sector in Malaysia seems positive, regardless of the multiple malls, Chan says. “There are more festive holidays in the second half of the year and shopping malls also tend to have sales (in conjunction with the holidays) and year-end sales that will help boost business for the (retail) segment.”

Tan believes that the local retail industry will grow by 5% this year, with total sales turnover expected at RM74.6bil.

By The Star (by Eugene Mahalingam)

Bolton in talks to buy land with RM500m GDV

Property developer Bolton Bhd is in talks to buy land with potential gross development value (GDV) of RM500 million this financial year, says its top executive.

"We target to acquire strategic landbank for our future development in Penang and the Klang Valley," said chairman Datuk Mohamed Azman Yahya.

Bolton plans to use about a third of the RM195 million loan it got in May this year for the purchase.

"With a low net gearing of 0.1 times and having raised additional banking lines, we now have the opportunity to gear up and embark on a landbank acquisition exercise to fuel our growth phase," he told pressmen after the company's annual general meeting in Shah Alam, Selangor, yesterday.
The group would focus on developing high-end residential properties.

Bolton now has 2.4ha to 2.8ha of land and this is expected to keep the company profitable for the next three to four years.

Its plan also includes the launch of four major projects this year, which can bring in RM500 million in sales.

The projects are the recently-launched RM155 million Arata condominiums in Bukit Tunku, the RM202 million "SixCeylon" condominiums and the RM220 million "51 Gurney" niche apartments, all located in Kuala Lumpur.

And later this month, Bolton will unveil The Wharf, a commercial development within Taman Tasik Prima township in Puchong with a GDV of RM650 million.

The group may raise more debt from loans or bond sales or it can also sell new shares to raise funds.

Meanwhile, executive director Chan Wing Kwong said Bolton may venture abroad in two years if the right opportunity arises.

By Business Times

Bolton to launch Puchong property this month

SHAH ALAM: Bolton Bhd will unveil a new commercial development in Puchong, known as The Wharf, later this month, said executive director Chan Wing Kwong.

The development, with a gross development value (GDV) of RM650mil, is a mixed offering of boutique shop offices, service apartments and a retail shopping mall.

The Wharf would highlight green features that would capture the imagination of an ever-demanding market, Chan said after the company AGM yesterday.

Projects in the pipeline include a 33-storey condominium development, known as “Sixceylon” at Bukit Ceylon, Kuala Lumpur, with a GDV of about RM180mil.

Meanwhile, its “51 Gurney” comprises 71 super luxury condominium with a GDV of about RM150mil.

On expansion plans, Chan said Bolton would continue building on its strength in the Malaysian property market and consider venturing overseas in the next one to two years. “We will look within the region,” he added.

For the financial year ended March 31, Bolton posted a pre-tax profit of RM50.7mil on revenue of RM257.5mil against RM38.11mil and RM292.04mil respectively in the previous year.

By Bernama

Magna Prima eyes good, small plots of land in Klang Valley

MAGNA Prima Bhd, a property developer, said there are still many pockets of land available in the Klang Valley that fits its strategy.

"If you are talking about those 500-acre lands, then it will be difficult to find. But if you look closely, there are many good, small plots of land in the Klang Valley that are suitable for smaller property projects like townhouses and apartments, which is what we are focussing on.

"As long as you are not in a hurry, know the prices and market well, you will be able get good value from the land," said chief executive officer Yoong Nim Chee after the company's extraordinary general meeting in Petaling Jaya, Selangor, yesterday.

Yoong said the local property market, especially in the middle to higher income segment, has improved this year and expects the company to benefit from it.
But it is also seeing demand from first time buyers who are only willing to pay between RM200,000 to RM300,000 per unit.

He expects the company to perform better than last year, when it registered a net profit of RM6.67 million, a decline of more than 70 per cent against 2008 net profit of RM27 million.

For the rest of the year, the company will launch several residential properties, including D'Sierra in Selayang, One Villa at Shah Alam, One Jalil at Bukit Jalil, Magna City off Jalan Kuching, Kuala Lumpur, as well a commercial property in Shah Alam, which will be rented out.

The D'Sierra project, a 3-storey townhouse development, is expected to have a gross development value of about RM70 million. The project is expected to be launched within two months. The EGM held yesterday was to secure shareholders' approval to buy the land for the D'Sierra development.

Magna Prima is also planning to launch a high-end property project near the KL City Centre area in the near future. The project will be the company's second project within the KLCC vicinity, since the Avare development which was done a few years ago.

By Business Times

REIT vs direct real estate investment

Investing in real estate can be tricky.

For a start, those who intend to make a quick buck by “flipping” property within a few months will find that it is risky, especially in a property market less buoyant than in Hong Kong or Singapore.

The alternative is hard work, that is, managing residential properties (and absorbing all the hidden costs that come along with it) as long term investments, receiving rent and selling them off for a capital gain or profit.

Another factor that may deter investors from real estate is the difficulty in raising enough capital to purchase a particular property.

So, should you consider putting your money in a real estate investment trust (REIT) instead?

Granted, a REIT does not comprise residential property, but if it is profit you are interested in, it may be an option.

REITs originated in the United States in the 1960s, but it wasn’t until 2005 that Axis REIT became the first property trust to be listed on Bursa Malaysia.

In Malaysia, there are now 14 REITs to choose from on the Main Market, offering investors a choice to own stakes in commercial, industrial, plantation and office real estate.

Aside from being more liquid than investing in real estate, one of the reasons why REITs are more appealing than investing in actual real estate is because of its high yield.

Gross dividend yield in the FTSE Bursa Malaysia index is about 2.9%, while the average yield for a REIT in Malaysia is about 8%.

REITs yield higher returns because commercial real estate generates a huge amount of cash flow from rentals.

If one invests in real estate though, it may be hard to charge the most preferred rental rate, even if the property had been purchased for a hefty price, simply due to market forces.

As for REIT prices on the stock market, they generally tend to be “low risk” because their prices are sustained by the yield factor, hence the volatility element is reduced.

Even so, REITs are not immune to economic difficulties.

REITs such as AmFirst, Hektar, UOA and Axis hit their lowest point in the middle of the financial crisis in 2008 but have since recovered to their pre-crisis prices, if not better.

Part of their recovery, says an analyst, is due to good management, good investor relations and a proven track record when it comes to acquisitions.

Still, one critic of REITs says it is probably more worthwhile to purchase stocks of established companies if they want to play safe.

Advocates of the property trust point to the fact that REITs are a different investment class altogether, choosing to view them as an investment that bridges the gap between a fixed deposit and the stock market.

One drawback of REITs is their inability to benefit from capital gain, unlike real estate.

But with REITs, returns may be secured with less risk which make them a nice way to take advantage of the big booms in the real estate market.

Investors can do without taking on the risk of mortgage payments, unscrupulous tenants and rising tax rates.

However, less risk obviously comes with less reward.

Good capital appreciation is still the main factor driving demand for landed residential properties.

Since 2008, there has been an annual compounded growth rate of 10% for capital appreciation in residential hotspots such as Petaling Jaya, Taman Tun Dr. Ismail and Mont Kiara.

A home can go up in value ten-fold given the right market conditions, which would give one a hefty sum of money right into his or her pocket - this won’t happen with any REIT.

Ultimately, for someone who wants to have more control of their assets and is willing to improve their value, investing in residential real estate can be a good choice.

For someone looking for passive real estate investment, with the added benefits of portfolio diversification and liquidity, a REIT is a good option to consider.

Think of them as allowing investors to be exposed to the real estate market without having to fork out as much capital.

Alternatively, REITs could be purchased as part of a balanced portfolio, until one has enough capital to enter the real estate market.

By The Star

GuocoLand unit ups stake in Tower REIT

PETALING JAYA: GuocoLand Malaysia Bhd’s wholly-owned HLP Equities Sdn Bhd has acquired 4.55 million units, or 1.62%, in Tower REIT for RM5.1mil including transaction costs via a direct transaction.

The acquisition raised GuocoLand’s interest in Tower REIT to 21.66% from 20.04% previously, it told Bursa Malaysia yesterday.

Tower REIT is a real estate investment trust that owns three office buildings – Menara HLA, Menara ING and HP Towers.

By The Star

Bolton to unveil RM650m 'The Wharf'

Property developer Bolton Bhd will unveil a new commercial development in Puchong, known as "The Wharf", later this month, said its executive director Chan Wing Kwong.

The development, with a gross development value of RM650 million, is a mixed offering of boutique shop offices, service apartments and a retail shopping mall.

The Wharf would highlight green features that would capture the imagination of an ever-demanding market, he told reporters after the company's annual general meeting today.

Other projects in the pipeline include a 33-storey development, known as "Sixceylon" at Bukit Ceylon, Kuala Lumpur, comprising 215 units of luxury condominiums with a gross development value of about RM180.0 million.

Meanwhile, "51 Gurney" is a unique offering comprises 71 units of super luxury condominium with a gross development value of about RM150.0 million.

Asked on expansion plans, he said the company would continue building its strength in the Malaysian property market while consider venturing overseas in the next one to two years.
"We will look within the region," he added.

For the financial year ended March 31, 2010, the company registered a pre-tax profit of RM50.7 million, up 33 per cent, compared with 38.113 million chalked up in the same period last year.

However, revenue declined to RM257.473 million from RM292.044 million previously.

By Bernama

Bolton to start RM500m projects in 2010

Bolton Bhd, a Malaysian property developer, will start property projects this year that may generate RM500 million in sales, chairman Azman Yahya told reporters in Shah Alam, near Kuala Lumpur today.

The projects are mostly in the capital, including high-end condominiums in Bukit Tunku residential area and Jalan Bukit Ceylon, Azman said.

By Bloomberg

CDL weighs options on prime KL land

PETALING JAYA: City Develop-ments Ltd of Singapore (CDL) is considering the available options, including whether to sell the 32,000 sq ft land in Jalan Bukit Bintang in Kuala Lumpur that is owned by a wholly-owned unit of its 54% subsidiary, Millennium & Copthorne Hotels plc.

In a statement yesterday, CDL said the group had from time to time received indications of interest from third parties keen on the land. CDL will make further announcements as appropriate if and when any agreement has been entered into for the sale of the subject site,” it said.

CDL’s Malaysian unit, City Developments Sdn Bhd, had earlier planned to build a 42-storey high-end serviced apartment project, Millennium Residence, comprising 135 one-, two- and three-bedroom units on the site.

It was initially planned for launch in the first half of 2008 but the project has been delayed several times due to the soft market for high-end condominiums around the KLCC area. The parcel is located between the Grand Millennium Hotel and the Pavilion Kuala Lumpur shopping centre.

CDL, which is owned by Singapore tycoon Kwek Leng Beng, owns the Grand Millennium Hotel.

A local daily had on Wednesday reported that the selling price for the land was being negotiated for more than RM3,000 per sq ft (psf).

An analyst in a local brokerage said “if materialised, this will re-write the previous record set by Sunrise for Wisma Angkasa Raya (RM2,588psf) and recent transactions of RM2,000-RM2,200psf for landbank around the KLCC area.”

Commenting on the possible sale of the land, a real estate consultant said land around KLCC was getting scarce and although the market was still quite soft, companies with deep pockets were still on the lookout for strategic land.

“The successful bidder may have to hold the land for a while until the market gets better if it intends to build a residential project there,” he told StarBiz.

By The Star

KL Plaza to re-open as farenheit88

KUALA LUMPUR: The 27-year-old KL Plaza will be opening for business on Sunday after a refurbishment of more than RM100mil.

It will be officially launched next month, mall manager Kuala Lumpur Pavilion Sdn Bhd said.

Its chief executive officer for retail Joyce Yap yesterday unveiled two of the anchor tenants for the former KL Plaza, which has been renamed fahrenheit88, at a press conference.

These are Japan’s top casual wear brand UNIQLO and Malaysia’s Signature IT.

Both of them will be taking up 23,000 sq ft and 75,300 sq ft of space respectively in the mall, which has a net lettable area of about 300,000 sq ft, about a quarter the size of Pavilion KL.

Yap, who will be managing both malls, said there would be more homegrown brands in fahrenheit88.

“Unlike other shopping malls where the average outlet is about 2,000 sq ft, about 50% of the stores in this new mall will be between 200 and 500 sq ft. Many of them will be small and medium-sized businesses,” she said.

Yap, who is also managing Kuala Lumpur Pavilion, said fahrenheit88 would have a different appeal.

Its main target will be those aged between 18 and 35.

UNIQLO is making its debut in Kuala Lumpur after entering into a joint venture with DNP Clothing Sdn Bhd, a subsidiary of Wing Tai Asia, with a capital of RM18.8mil.

UNIQLO owns 55% while DNP the remaining 45%. The brand entered the Singapore market 18 months ago.

DNP operates more than 50 retails outlets in Malaysia carrying various brands such as Dorothy Perkins, Miss Selfridge, Top Man and Top Shop.

UNIQLO managing director Satoshi Onoguchi said there were plans to open more stores in all major cities around the world.

The expansion into Singapore in April last year marked its entry into South-East Asia.

There are currently over 900 stores worldwide.

Fahreheit88 is owned by Makna Mujur Sdn Bhd, which is owned by Pavilion International Development Fund Ltd.

The principal of this fund is Qatar Investment Authority (QIA). QIA also owns 49% of the Pavilion KL shopping mall nearby.

Fahrenheit88, formerly known as KL Plaza, was acquired by Makna Mujur for RM470mil in 2007. KL Plaza was previously owned by the Berjaya group.

By AP

Ivory to buy land in Penang for RM25m

IVORY Properties Group Bhd will buy a plot of land measuring 0.5ha in Bandar Batu Ferringhi, Penang, for RM25 million.

Ivory told Bursa Malaysia yesterday that it had entered into a conditional sale and purchase agreement with Lim Soon Hin and Lim Soon Vin for the purpose.

It plans to build 96 units of condominium with an estimated GDV of RM159 million on the land.

By Business Times

Hektar REIT: Buy, fair value price RM1.23

AMRESEARCH Sdn Bhd has maintained a "buy" call on Hektar REIT Bhd's due to its future earnings potential which are in line with expectations despite a weak occupancy.

In its research note, AmResearch said Hektar has attractive yield and defensive assets under its portfolio with a fair value of RM1.23 a unit under review pending a meeting with the management.

Hektar reported a net income of RM9 million for second quarter 2010, taking its first half earnings in 2010 to RM19 million.

Net income grew by 7 per cent on the back of 4 per cent increase in rental income. This is mostly driven by stronger occupancy in Mahkota Parade following its asset enhancement exercise.
Similarly, Wetex Parade showed stronger occupancy to 92 per cent, from 90 per cent as at end of last year.

However, Subang Parade's tenancy dropped to 95 per cent (from 100 per cent) as some of its tenants moved out, most notably Toys R US.

While this is a slight setback to the portfolio, AmResearch said this gives an opportunity for Hektar to redesign its mall concept at certain floors, thus enhancing its mall.

At current price, the REIT is trading at par to its net asset value of RM1.28 per unit and its current yield of 9 per cent remains attractive comparing against 10-year government bonds (4.2 per cent) and fixed deposit of 2.8 per cent.

By Business Times

Distressed property sales to increase

LONDON: More distressed property sales are expected in the next 12 months as changes to international regulations will likely raise the capital cost of holding commercial property on banks' balance sheets, an industry body said.

Growth in distressed property listings eased in the second quarter of this year, but are expected to worsen in the third, the UK Royal Institution of Chartered Surveyors (RICS) said yesterday, based on the results of a survey of its members.

RICS defines distressed properties as those with foreclosure orders or which are advertised for sale by their mortgagee, and which tend to fetch lower prices than their market value.

Three European countries - Portugal, Spain and Germany - were worse off in the second quarter, reporting distress in their market had risen at a faster pace.

By Reuters