Bukit Bintang land parcel sold at record price

PETALING JAYA: A parcel of land in Kuala Lumpur’s shopping district of Bukit Bintang has been acquired by Urusharta Cemerlang (KL) Sdn Bhd at a record price of RM210mil from CDL Hotels (M) Sdn Bhd, a unit of London-based Millenium & Copthorne Hotels plc.

At 29,127 sq ft, the land parcel located between Grand Millenium KL hotel and the Pavilion KL mall would be acquired for approximately RM7,209.80 per sq ft, surpassing estimates in earlier reports that the sale could fetch more than RM3,000 per sq ft or around RM96mil.

This would also dwarf previous transactions for real estate in the city centre, where Sunrise Bhd had bought the 24-storey Wisma Angkasa Raya along Jalan Ampang for nearly RM180mil or RM2,588 per sq ft in 2008.

Millenium & Copthorne is a company controlled by Singaporean billionaire Kwek Leng Beng via a 53% stake in Singapore-listed property and hotel group City Developments Ltd.


Kwek Leng Beng controls Millenium & Copthorne via a 53% stake in Singapore-listed City Developments Ltd

Kwek is also cousin to Tan Sri Quek Leng Chan, who helms the Malaysian operations of the Hong Leong group, while the former helms the Singaporean operations.

The sale to Urusharta Cemerlang, which owns and operates the Pavilion KL mall, ended several weeks of speculation on who would acquire the parcel of land.

The YTL group, owner and operator of the nearby Starhill Gallery and Lot 10 malls as well as the JW Marriott Hotel, was said to be interested in acquiring the parcel.

Urusharta Cemerlang is 51% owned by Urusharta Cemerlang Development Sdn Bhd, with the remainder of the stake owned by the Qatar Investment Authority (QIA).

The QIA, which is the principal of Pavilion International Development Fund Ltd, owns the Fahrenheit 88 mall via Makna Mujur Sdn Bhd. The mall will be operated by Urusharta Cemerlang.

The land was slated for a RM500mil serviced apartment project comprising a 42-storey block to be known as the Millenium Residences.

The project was launched in 2008 but has since stalled following the recession and the slower demand for high-end residences in the city centre.

By The Star

Makna Mujur anticipates new Fahrenheit 88 mall to do well

MAKNA Mujur Sdn Bhd, the owner of Fahrenheit 88, expects the newly-opened shopping mall in Jalan Bukit Bintang, Kuala Lumpur, to generate RM250 million in annual sales.

Its director Datuk Lee Tuck Fook said the opening of Fahrenheit 88 will help boost the company's revenue.

"This would be a profitable venture for us," Lee said, but declined to disclose figures. Makna Mujur is a subsidiary of Pavilion International Development Fund Ltd.

Lee was speaking to reporters after the soft launch of the mall yesterday.

He said Fahrenheit 88 has about 200 shops and is expected to be fully operational by November 23.

"Today about 65 per cent of the shops are operational," he said.

The mall has secured 95 per cent tenancy rate, of which 80 per cent constitute local brands and the remaining 20 per cent international.

Fahrenheit 88 consists of 300,000 sq ft of lettable space spread over five levels of zoned shopping space. Its anchor tenants include Japan's biggest clothes retailer Uniqlo and Signature IT, which comprises shop lots, island kiosks and counter kiosks selling all information technology-related products.

Fahrenheit 88 is managed and leased by Kuala Lumpur Pavilion Sdn Bhd, which manages Pavilion KL.

Earlier in his speech, Lee said Fahrenheit 88 aims to inject added excitement to the Bukit Bintang shopping district.

"This will be the latest shop spot in Bukit Bintang for the young urban shoppers, who are sophisticated, educated and cultured," he said.

Meanwhile, Kuala Lumpur Pavilion retail chief executive officer Joyce Yap said the company is bullish about the growth of the local retail industry.

By Business Times

Buyers returning to property mart: IJM

Property developer, IJM Land Bhd (IJM Land), believes the recent launch of 116 units of double-storey terrace houses called "Serena" will be a hit among housebuyers who want modern-concept houses at attractive prices, says sales and marketing manager Susan Teh.

Moreover, she said, this was the right time to buy houses as the financing cost was at the lowest. "Of late, we can see a renewed buyers' interest to buy houses. They have started to return to the property market," she said.

The Serena is among new housing projects being developed by IJM Land at S2 Heights in Seremban 2. The houses, measuring 2,269 square feet a unit, are being built on a 607-hectare site.

Susan said 30 per cent of the houses have been booked since the project launch. The houses, costing RM326,800 a unit, are slated for completion at end-2011.

By Bernama

Ivory Properties plans condo, shopping complex of RM368m GDV in Penang

KUALA LUMPUR: Ivory Properties Group Bhd plans to build residential condominiums and commercial complex with a with an estimated gross development value (GDV) of RM368 million on a proposed site in Tanjong Tokong, Penang island

Ivory said on Wednesday, Sept 15 this project followed its proposal to acquire an additional 847,059 shares representing 94.12% of Tanjong Tokong Garden Development Sdn Bhd (TTGD) for RM37.64 million.

Ivory said it currently owns 52,941 shares or about 5.88% in TTGD. The 94.12% stake would be acquired from the shareholders of TTGD.

TTG, it said, was the registered and beneficial owner of all several pieces of land in Bandar Tanjong Tokong. The land was about 600 ft from the main road and opposite Island Plaza shopping complex.

“The land offers a high potential development in light of its strategic location with roads and other infrastructure in place,” it said.

Ivory said it intended to develop the land under a proposed project named “City Mall” consisting of approximately 175 units residential condominiums and commercial shopping complex with an estimated GDV of RM368 million and estimated gross development cost of RM173 million.

“The expected profit before tax to be derived from the development is RM154 million,” it said.

Ivory added that it had submitted plans to the relevant authority to develop the land and application for planning permission has been approved by the relevant authority.

The proposed development is expected to start in 2011 and complete in 2014.

By The EDGE Malaysia

Bina Puri order book swells to RM2.57b with RM95.9m Kuching project

KUALA LUMPUR: BINA PURI HOLDINGS BHD’s order book swelled to RM2.57 billion to date after it secured a contract to build the proposed 13-storey Plaza Merdeka commercial complex/hotel along Pearl Street, Kuching for RM95.69 million.

It said on Wednesday, Sept 15 that its unit Bina Puri Construction Sdn Bhd had accepted a letter of award from Rakyat Elite Sdn Bhd for the project.

Bina Puri said the project was expected to be completed within 19 months.

“With the award, the group’s current book order stands at RM2.57 billion as at to date. The group had managed to secure new projects worth RM1.62 billion in 2010,” it said.

Bina Puri said the contract was expected to contribute positively to its earnings for the financial year ending Dec 31, 2010.

By The EDGE Malaysia

Daiman inks MoU for China project

KUALA LUMPUR: Property developer Daiman Development Bhd has signed a memorandum of understanding (MoU) with the People’s Government of Chaozhou Municipality in China to acquire and develop a piece of land in Chaoan County, Guangdong Province.

Under the MoU signed on Sept 10, Daiman accepts the investment opportunity offered by the Chaoan County to develop the land, measuring about 121.4ha at Dong Shan Hu in Shaxi Town.

Based on the MoU, the Chaoan County undertakes to supply full information and assistance for Daiman to complete its feasibility and due diligence studies.

During the due diligence period, the right to acquire and develop the land was exclusive to Daiman, the company said in a filing with Bursa Malaysia.

By Bernama

Rising demand for Prai property

Completed terrace houses in the Pearl Garden project by Tambun Indah Development in Simpang Ampat

GEORGE TOWN: Residential property prices in the prime locations of Seberang Prai have seen their most pronounced rise in years with prices having advanced by between 10% and 20% for the past six months.

The prime residential locations in Seberang Prai are in Alma in central Seberang Prai, Simpang Ampat and Bukit Tambun in southern Seberang Prai, and Butterworth town.

Henry Butcher Malaysia (Seberang Prai) senior manager Fook Tone Huat told StarBiz that a double-storey terrace house in Alma, Bukit Mertajam was now priced at around RM280,000, compared with RM240,000 about a year ago, an increase of about 17%.

A similar type of house in Simpang Ampat and Bukit Tambun in South Seberang Prai is now selling for about RM260,000, compared with RM220,000 a year ago.

In Butterworth town, a double-storey terrace house is priced around RM320,000, compared with about RM260,000 a year ago.

For condominiums in prime locations such as the Pinang Laguna Water Park condo project in Seberang Jaya, Fook said the prices had increased by about 10% from last year to about RM200,000.

For example, the recent launches of Pinang Laguna Water Park Condo units in July by Island LandCap Properties were priced from RM208,888, up about 10% from RM188,888 last August when the project was first introduced.

The Pinang Laguna Water Park Condo project, comprising 350 condominiums with built-up areas of 935sq ft and 1,010sq ft, is over 90% sold.

“In last three years, condominiums are becoming increasingly popular in Jalan Raja Uda and Jalan Telaga Air in Butterworth town.

“The original selling price, which started off from about RM160,000 for a unit with over 1,000 sq ft in built-up area, has risen over 30% over the past three years to around RM210,000 and RM230,000 today,” he said.

For the second half of 2010, three condominium projects, the Dahlia Park, Tanjung Heights in Butterworth town, and Palma Laguna Water Park Condo in Seberang Jaya, are already being planned for launching.

Although the price of residential properties had risen, Seberang Prai is still far from being a speculative market.

Fook said this could be seen in the low volume of sub-sales transaction of residential properties in the secondary market.

“Since January 2010, our company’s sub-sale transactions are just over 50 units.

“The appreciation for sub-sales properties is about 5% yearly,” Fook said, adding that Henry Butcher Seberang Prai’s main focus was on sales transaction of light industrial properties.

Fook said the speculative element in the Seberang Prai residential property market was not strong, as there was a strong supply of new houses.

From Asas Dunia Bhd alone, a major developer in the mainland, in the first half of 2010, the group had already launched 231 units of landed residential properties with an approximate gross sales value (GSV) of RM82mil, compared with the 169 units with an approximate GSV of RM44mil launched by the group for the whole of 2009.

Tambun Indah Development Sdn Bhd general manager Teh Theng Theng said the sub-sales for its Juru Heights project in central Seberang Prai in the past three years were only about 10% of the 482 units of landed residential properties in the scheme.

The demand for workers from multi-national corporations such as Ibiden Electronics Malaysia Sdn Bhd, First Solar, and Osram is also stimulating the demand for affordable residential properties on the mainland.

Ibiden, for example, has announced that it would hire some 900 workers for its first plant that is scheduled to start operations in the second quarter 2011.

Osram Opto Semiconductors and First Solar had earlier this year announced their plans to hire 1,000 workers for each of their respective plants in Bayan Lepas and in Kulim Hi-Tech Park (KHTP).

Meanwhile, Real Estate Housing Developer Association (Penang, REHDA) chairman Datuk Jerry Chan said the rise in Seberang Prai property prices had to do with the increase in land and construction costs.

“In hot locations such as Butterworth and Bukit Mertajam towns, where land is limited, the price of land with vacant possession is now about RM50 per sq ft and RM40 per sq ft respectively.

“In Alma, the price of land with vacant possession is about RM30 per sq ft, while in Bukit Tambun it is around RM18 per sq ft.

“Inclusive of land and construction costs, the cost to build a double-storey house on the mainland is about RM200,000, compared with about RM160,000 a year ago,” Chan said.

Chan said the scheduled completion of the second Penang bridge in 2013 was another important factor in pushing up property prices. “Now that is over 24% completed, people are now confident that it would be completed on time,” he said.

DNP Land Sdn Bhd general manager KC Tan said one of the reasons why property prices in Bukit Mertajam was appreciating had to do with the effort to improve the road infrastructure.

“For example, the roads near Bukit Mertajam town are now gradually being widened to accommodate the construction of a flyover that will reduce traffic congestion.

“The opening of Tesco hypermarket in Alma before the year ends also explains why the area is now booming as a prime residential zone,” he said.

By The Star

Emkay wants Cyberjaya land to build office towers

PRIVATELY-HELD property developer Emkay Group is on the lookout for land in Cyberjaya, Selangor, to build office towers.

Its senior general manager Mazrita Mazlan said that office space was in demand and easier to sell, giving good returns to the group as foreign multinational corporations liked to buy floor by floor en bloc.

"Office space is what the market wants right now as the government does not have enough buildings to house their ministries and agencies such as the Department of Environment and the Public Service department. Also, Cyberjaya is near Putrajaya with easy and fast connectivity," Mazrita told Business Times.

"Furthermore, office space which is usually sold en bloc is hassle-free because documentation process is under one company, making it faster to process at local government agencies compared to shop-houses," she added.

Mazrita said the group recently bought 1.4ha in Cyberjaya for RM7 million, on which it plans to build another two to three office blocks or special purpose buildings.

"We have sufficient experience to build office towers, such as our completed RM100 million Bangunan Mustapha Kamal in Cyberjaya and the RM350 million Menara Mustapha Kamal in Damansara Perdana, Petaling Jaya.

"But we plan to build office towers cautiously and will first undertake feasibility studies to see the project's viability," she said.

Mazrita added that some international firms, especially information technology (IT), find it cumbersome to buy land and build their own offices.

"They would rather tender out construction of the buildings and then rent or sell them to investors."

The Emkay group is owned and controlled by property tycoon Tan Sri Mustapha Kamal Abu Bakar, who is also the executive chairman and dominant stakeholder of associate company MK Land Holdings Bhd.

He holds 48.7 per cent of MK Land via privately-held MKN Holdings Sdn Bhd, which in turn is one of 15 companies owned by Mustapha grouped under the Emkay stable.

Emkay associate company Setia Haruman Sdn Bhd is also the master developer of Cyberjaya.

Mazrita believes that Cyberjaya is the place to be as it is home to 20,000 students, out of which half are foreigners.

It is also a workplace for 19,000 workers spread across 50 MSC Malaysia-compliant buildings spanning 5.8 million sq ft.

"Property price in Cyberjaya is competitive at RM350 per sq ft compared with other competitors at RM450 per sq ft, and rental yield here is 7 per cent per year," said Mazrita.

By Business Times

Property launches worth RM571m planned in H2

GEORGE TOWN: The second half of this year will see the commencement of property launches in Seberang Prai for 1,981 landed and high-rise property units with an estimated gross sales value (GSV) of RM571mil.

Asas Dunia Bhd, Tambun Indah Development Sdn Bhd, and Island LandCap Properties Group are among the developers launching the projects.

Of the 1,981 units, some 664 are high-rise properties developed by Tambun Indah Development Sdn Bhd and Island LandCap Properties.

The highlight of the high-rise projects is the 38-storey RM100mil Palma Laguna Water Park Condo, touted as the tallest building in the mainland, by Island LandCap Properties.

“The 382 condominiums, measuring 1040 sq ft and 1,100sq ft in built-up areas, are priced between RM228,000 and RM265,000, depending on whether the units are facing the sea or the facilities.

“There are four penthouses, with built-up areas of 1,600sq ft and 1,970sq ft, priced between RM400,000 and RM490,000.

“We have already sold 20% of the units during a preview recently,” said Island LandCap executive chairman Oon Weng Boon. The official launch of the project is on October 23.

Also scheduled for launching in the fourth quarter are Tambun Indah’s RM40mil Dahlia Park and the RM41mil Tanjung Heights high-rise condominium project, comprising 282 units.

“The Dahlia Park in Butterworth town comprises 134 condominiums with built-up areas ranging between 1,395sq ft and 1,689sq ft, priced from RM209,800 onwards.

“The Tanjung Heights project in Butterworth town comprises 148 condominiums of 1,300sq ft units, priced at around RM200,000,” Tambun Indah general manager Teh Theng Theng said.

“The recent launches of Carissa Park werepriced at RM182,000, compared with RM160,000 when the project was introduced early this year,” she said.

Teh added that the group’s Carissa Park condominium project, comprising 144 units in Butterworth town, had sold about 70% of its units since the launch early this year.

Tambun Indah is also launching, in the fourth quarter, 467 units of landed residential properties in Simpang Ampat, South Seberang Prai, and in Alma, central Seberang Prai, with an approximate GSV of RM160mil.

“Some 335 units are for the group’s Pearl Villa gated project in Simpang Ampat.

“The terrace and semi-detached properties are priced respectively from RM270,000 and RM398,000 onwards.

“The Impian Residence, comprising 132 terrace and semi-detached units, is in Alma.

“The selling price starts from RM260,000 for terrace units and RM350,000 for semi-detached types,” she said.

Asas Dunia will launch soon 850 units of landed properties planned for central and southern Seberang Prai.

The 850 units of landed properties have an estimated GSV of RM230mil.

They comprise 500 single-storey semi-detached houses, and 350 double-storey terrace, double-storey semi-detached, and light industrial units.

Group managing director Datuk Jerry Chan said the single-storey semi-detached unit, with built-up and land areas of 1,200 sq ft and 2,660sq ft respectively, was priced between RM150,000 and RM290,000.

The double-storey semi-detached unit, with built-up and land areas of 2,557sq ft and 2,724sq ft, is priced from RM358,888.

By The Star

Pulau Bruit development set to be major tourist destination

KUALA LUMPUR: Prime Minister Datuk Seri Najib Razak has announced plans to develop Pulau Bruit in Sarawak into a major tourist destination.

The island covers an area of 530 sq km. Pulau Bruit is the second largest island in Malaysia after Pulau Langkawi.

The development of the island will also benefit the nearby Kampung Penipah and Kampung Tekajong along Sungai Rajang.

On April 28, Deputy Prime Minister Tan Sri Muhyiddin Yassin said a RM28mil infrastructure project to transform the island into an agropolitan centre.

Pulau Bruit was prioritised for development by the state for its strategic location in the Sarawak Corridor of Renewable Energy.

The government will look into areas of urgency such as the construction of roads connecting the villagers of the island to the district of Sibu where it will enable them to transport their produce to sell at a lower delivery cost.

Kampung Penipah also requires a clinic of its own as patients currently have to travel for 40 minutes by longboat to the Tekajong Health Clinic and this can only be done during high tide.

By The Star

SP Setia to grow foothold in landed assets

SP Setia's acquisition of 103.64 hectares of land in Johor and its development prospects may further strengthen the property developer's foothold to capitalise on the boom in the mid-to-high-end landed properties in the country, says OSK Research.

The company bought the freehold development land, adjacent to its Setia Indah township in Iskandar Malaysia, for RM169.3 million or RM15 per square feet, recently.

It said the proximity of the land to other mature developments offers important advantages, especially potential demand among upgraders in the area, wanting to move up to larger, newer and better-designed houses.

The proposed development that would replenish the company's landbank is expected to have a gross development value of RM1.5 billion.

"The land development is envisaged to commence by end-2011 or early financial year 2012, with a development period of eight years.

"The land is expected to be developed into another township with a mix of residential and commercial properties," OSK said in a research note today.

It said earnings contribution, at the earliest, is expected to start from late 2011 (or early financial year 2012) and onwards.

However, as the launching and development details are still sketchy, it is not imputing this into its earnings forecast for now, it said.

By Bernama

Poser on whether real property gains tax will be raised

Property development in Malaysia. Will real property gains tax be raised?

PETALING JAYA: Hot on the heels of the possibility that Bank Negara will propose tightening the mortgage loan market to curb speculative buying in the upper medium to high-end housing market, questions have arisen whether the Government may also be looking at raising the quantum of real property gains tax (RPGT).

Some analysts have addressed this possibility in their recent research notes.

Hwang DBS Vickers Research, in a report on Monday, said the RPGT might be brought back in its entirety (5% to 30% for property disposal within five years of purchase from the present 5%) in Budget 2011.

Aimed at cooling off the rapid rise in housing prices, the full reintroduction of RPGT could further delay the return of foreign buyers that currently accounted for less than 5% of sales, it said.

Prior to the exemption of the RPGT in April 2007, tax on gains from property disposal was on a progressive basis from 30% to 0% depending on the holding period of the property.

If one buys a property and disposes it for profit within two years of purchase, the profit will attract 30% tax; within the third year will be 20%; fourth year 15%; and fifth year 5%. A sale in the sixth year and thereafter will not be taxed.

When contacted, tax consultants and industry leaders expressed reservation that the Government would revert back to the full RPGT quantum so soon after it was re-introduced in January.

The Government had, under Budget 2010 (tabled last October), proposed to reintroduce the RPGT at a fixed 5% rate on all property disposal regardless of status and duration. The blanket 5% RPGT drew a lot of flak from the public who felt it was unfair and punitive on genuine property owners and investors.

In December 2009, the Government amended the policy, exempting all property disposals undertaken after five years from the RPGT.

PricewaterhouseCoopers Taxation Services Sdn Bhd tax leader and senior executive director Khoo Chuan Keat said that although there had always been the possibility of the Government reactivating the RPGT in its entirety, “the current situation does not warrant it as the property market has not gone off the roof unlike in some countries like Singapore.”

“There is no point in using an elephant to kill a rat. There will always be some speculative buying in the market, but as long as prices have not been inflated by artificial demand and there are no big surges in prices, some speculation is actually quite healthy,” Khoo told StarBiz.

He said the RPGT would not be an efficient tool to raise tax revenue for the Government, and pointed out that the Goods and Services Tax would do a better job for tax collection.

“Malaysia’s property market is at a different stage of development to that of Singapore’s. The city state’s economy is undergoing a strong boom and there are many more property buyers there, particularly foreign investors, which led to the sharp jump in property prices.”

Foreign buyers generally are involved in close to 30% of Singapore’s property sales.

Khoo said Singapore’s market had became too expensive and volatile for local Singaporean buyers and the government had to stabilise prices to ensure the locals were not priced out of the market.

Among the measures introduced are the imposition of a 70% mortgage cap for buyers with more than one property and the launch of 36,000 public housing units within one to two years.

Concurring with Khoo, Real Estate and Housing Developers’ Association president Datuk Michael Yam believes a higher RPGT would not be imposed in the upcoming Budget as there is little sign of high speculation or overheating in the local property market.

“Any such move will be counter-productive to the government effort to stimulate the property market, and it will be another flip-flop in its policy decision that will damage the consistency of government policies,” Yam said.

He added that a higher RPGT would dampen the market and result in a loss of revenue for the Government as revenue collected from property-related transactions, such as stamp duty and tax on profit of service providers including lawyers, estate agents and financiers, should be higher than the RPGT revenue.

Tax expert Dr Veerinderjit Singh has always believed that “since the RPGT was not abolished or repealed, it is likely that it may be brought back when the need arises and the timing is appropriate especially to curb excessive speculation and rise in property prices”.

He said a proper study needed to be conducted on whether the market was under control and if there was a need for new measures such as raising the RPGT to curb speculation.

“If the study shows that the market has regained its footing and there is no need for the low RPGT to be maintained as a support measure, there may be a need for the rates to be lifted. After all the whole purpose of the RPGT is to tax speculative gains and rein in speculation in the market,” he added.

By The Star

Joint venture to build RM100m project in Kuching

Yoshikawa and LCDA in Sarawak’s first ‘corporate lifestyle’ commercial development

KUCHING: Yoshikawa Corp & Development Sdn Bhd and state-owned Land Custody and Development Authority (LCDA) are jointly developing icom.square here, billed as Sarawak’s first “corporate lifestyle” commercial development.

Yoshikawa, which had completed several major property projects in Sarawak, is the development arm of Nationlink Group. Nationlink executive director Chai Kun Seng said the icom.square project, sandwiched between the busy Jalan Pending and Jalan Datuk Abang Abdul Rahim, would comprise eight six-storey towers, more than 400 strata-titled commercial units and a covered food and beverage street.

“The project, with a gross development value (GDV) of about RM100mil, will be ready in two years’ time,’’ he told StarBiz yesterday. He said the project was named icom.square as it would be an “intelligent” commercial centre, and that it would also be the city centre’s largest property development, covering six hectares (ha).

Chai said icom.square would be equipped with WiFi facilities, round-the-clock CCTV monitoring and more than 1,000 car parks. The developer will provide central management for the entire development.

The commercial units will be priced from RM188,000 to RM500,000 but prices for the corporate towers have yet to be fixed, according to Chai.

He said since its recent launch, icom.square had received overwhelming response, with the ground floors of the commercial units nearly all taken up.

“We have talked to big corporations, including multinationals, for the sales of the corporate towers.

“The response has been good,’’ he said.

Chai said icom.square would cater to the lifestyle of corporate figures and professionals, and that the planned food and beverage street would provide an ideal environment for them to discuss business.

Yoshikawa’s completed projects included the Kuching Bukit Mata shophouses, Yoshi Square, Mukah’s Boulevard Commercial Centre, and the Tebedu new township at the Sarawak-Kalimantan border.

Nationlink’s two other subsidiaries, Polarwood Sdn Bhd and Nation Horizon Sd Bhd, had completed several major residential and commercial development projects, including the Batu Kawa light industrial park in the state capital.

By The Star

SP Setia unit buys land in Johor for RM169mil

KUALA LUMPUR: SP Setia Bhd’s wholly-owned subsidiary, Setia Indah Sdn Bhd, has purchased 259.10 acres in Tebrau, Johor Baru, for RM169.3mil cash.

In a filing with Bursa Malaysia yesterday, SP Setia said its subsidiary had entered into a conditional sale and purchase agreement with Kelana Ventures Sdn Bhd to acquire the land. It said the purchase price would be funded from internally-generated funds and/or external borrowings. The acquisition is expected to be completed by financial year ending Oct 31, 2011.

SP Setia said the acquisition would replenish Setia Indah’s land bank and enable the group to benefit from the strong branding it has achieved in that locality.

“It is also in line with the group’s wider strategy of continuing to acquire strategically located prime land in Johor Baru,” the company said. Based on a preliminary feasibility study and revised layout plan, which is subject to the approval of the relevant authorities, the proposed development is expected to have a gross development value of RM1.5bil and is expected to commence by end-2011 and span over a development period of about eight years.

“It is currently too preliminary to ascertain the total development cost, the expected completion date of the development and the expected profits to be derived from the development of the land,” SP Setia said.

By The Star

SP Setia unit to buy land in Johor for RM169.26m, planned GDV RM1.5b

KUALA LUMPUR: SP SETIA BHD’s unit is buying 259.1 acres of land in Johor for RM169.26 million cash to replenish its land bank as the Setia Indah Johor development was at its tail-end.

S P Setia said on Thursday, Sept 9 its unit Setia Indah Sdn Bhd had entered into a conditional sale and purchase agreement with from Kelana Ventures Sdn Bhd to acquire the land.

Based on a preliminary feasibility study and revised layout plan, the proposed development is expected to have a gross development value of RM1.5 billion. Development was expected to start by end of 2011 and span over eight years.

“However, it is currently too preliminary to ascertain the total development cost, the expected completion date of the development and the expected profits to be derived from the development of the land,” it said.

S P Setia said the acquisition would be wholly in cash from internally generated funds and/or external borrowings.

It said the acquisition would enable the company to continue to benefit from the strong branding it had achieved in that locality. It is also in line with the group's wider strategy of continuing to acquire strategically located prime land in Johor Bahru, it said.

The company said site was near other matured developments such as Taman Mount Austin and Taman Daya and hence also offered several important advantages, in particular the sustained potential demand from upgraders in the area desiring to move-up to larger, newer and better designed houses.

“Another source of demand is from young adults planning to move out of their parents' homes without having to leave the comforts of the local support network that they have grown accustomed to.

“Further, the existing population of the surrounding matured housing projects will also form the core catchment area for the proposed development's commercial components,” it said.

S P Setia was confident that the proposed development of mixed residential and commercial project on the land would be well received, and contribute positively to its future earnings and cash flow.

“The proposed development will also ensure S P Setia's continuing presence and efforts in building residential properties in Johor,” it said.

By The EDGE Malaysia

Inaugural HomeTech & Hardware Tools Expo '10

There will be a galore of bargains and prizes in conjunction with the inaugural HomeTech & Hardware Tools Expo '10, held from October 28th to 31st. The four-day event at Putra World Trade Centre's (PWTC) Tun Razak Hall 1 & 2 will showcase a multitude of products and services, targeted at both consumers and businesses. The exhibitors will be companies that are involved in tools, DIY and building hardware, security, locks, furniture, fittings, home appliances, bathroom & sanitary ware, lightings, arts and crafts, interior design and landscaping services.

"With over 100 companies offering fantastic bargains and personalised services, we expect to attract 100,000 to 150,000 visitors over the four days," says Kelvin, director of Marquee Events, the organiser of the HomeTech & Hardware Tools Expo 10.

Kelvin adds that from 10am until 9pm, starting from Thursday to Sunday, visitors can look forward to various events, including lucky draws, seminars and workshops and tips on home renovation.

"Come and find out about the latest trends in home renovations, appliances and gadgets that will make managing your home a breeze and get advice and tips from our panel of experts. And best of all, visitors stand a chance to win cash prizes every single day!" he says.

With a host of bargains and special deals for everything that you need in a home under one roof, the HomeTech & Hardware Tools Expo '10 will be a shoppers' haven. However, it won't be a one-way street — the bigger the spender, the higher the rewards. The "Shop & Get" promotion guarantees a prize for every customer, with proof of purchase. Visitors can redeem prizes based on the total amount spent at the expo.

Even filling out details can get you amazing prizes. Put down your details in a form and you will be eligible for a lucky draw daily and one grand draw on October 31st, where you may walk away with prizes in cash and kind, totaling up to RM300,000.

The HomeTech & Hardware Tools Expo '10 will also be a knowledge-sharing experience as visitors can attend numerous seminars, workshops and talks by experts in various fields. Among the topics that will be featured are interior designing which will be hosted by well-known interior designer Eric Leong. Eric Leong will be sharing his tips on a range of areas, from using the right colours to picking the right material and furnishing to bring the best out of your home.

Find out about the dos and don'ts of renovation, how to choose a good contractor, how to paint your walls the right way and also learn about budgeting and making a checklist for a pleasant home improvement experience. There is also the Do-It-Yourself Workshop that will guide you to the right way of DIY, using the latest tools and equipment. A not-to-be-missed event during the HomeTech & Hardware Tools Expo '10 is a talk on Feng Shui. Feng Shui means wind and water literally and the principles of Feng Shui centre on striking a balance between the elements so that your abode will be blessed with harmony, happiness and luck. Learn from the expert on how to "activate" that wealth energy and enhance your general well-being.

Visitors also get learn cook a couple of dishes while trying out new kitchen utensils. There will be cooking demonstrations where the chefs will introduce nutritious, easy-to-cook dishes that are great tasting as well. Watch the chefs in action and learn how to turn your kitchen into the centre stage of your home by serving up a storm, minus the hassle. The sessions are on a first-come, first-served basis, so be sure to register early.

Apart from visitors, business professionals, participating exhibitors and suppliers will also benefit as this expo will provide a perfect platform for business networking and present a golden opportunity to trade ideas, goods or even strategies.

Those who sign up as an exhibitor of the HomeTech & Hardware Tools Expo ’10 are given the option to set up a Shell Scheme Booth or the Raw Space Booth. With the Raw Space Booth, exhibitors are able to build up their booth based on their company’s preference. “The best looking booths always attract the most crowds,” says Kelvin.

The HomeTech & Hardware Tools Expo '10 is in collaboration with StarProperty.my. For details, visit http://www.starproperty.my/hometech/ or www.marqueeevents.com.my/hte or call 03-6142 3611.

By The Star

Diffuse the property bubble before it is too late

The subject of property prices and financing has gathered momentum ever since news broke that Bank Negara is assessing the situation to determine if new measures should be instituted to cool down fast escalating property prices.

Lobby groups for the industry have been busy making their case heard, saying that any move to impose higher downpayments for houses would hurt the property market.

Their concerns come at a time as a growing number of people have complained that prices of houses, especially in the hotspots in the country such as the Klang Valley and Penang, are spiralling beyond affordability.

The last thing everybody needs is such speculation spreading to other areas where for the moment, speculative activity appears to be contained for the moment in the hotspots as 94% of houses sold in the country are priced below half a million ringgit and 85% of houses launched in the past nine months cost below RM500,000.

Dealing with speculation is tough and the last thing anyone should do is to make genuine buyers suffer, especially first time buyers.

Suggestions that houses costing below RM500,000 should not be subject to the new higher downpayment requirement makes sense.

Also first-time house buyers or owner occupied houses should be given the most ease of financing to allow them to fulfil the dream of owning a home.

It’s also hard to clamp down on speculative activity as the wealth creation process is an allure that developers, banks and policy makers might find hard to turn away.

After all, the money generated from flipping houses adds to the bottomlines of companies and the money in the hands of people could well filter down to other consumption activity that would go a long way to help spur economic activity.

But the profit from speculating activity, this time driven largely by cheap and ready financing, is unsustainable and history is full of examples of the dire consequences of a property bubble gone burst.

It’s then not surprising that the authorities in other countries in the region, where a property bubble has formed, are working hard to manage and diffuse the situation. Rules introduced in China, Hong Kong and Singapore are far more drastic that what the authorities here are reported to be contemplating.

In fact the new rules that are talked about are tame compared with what has been done in the past. In 1995, reports said that Bank Negara imposed a maximum 60% loan for residential properties priced above RM150,000 to put the brakes on the then fast rising house prices.

Furthermore, a real property gains tax of 30% was imposed on foreigners selling their properties irrespective of the holding period of the property.

Those measures were met with a huge hue and cry from the lobby groups, and developers who claimed that such draconian measures would maim the market. A couple of years later Malaysia entered its worst-ever recession, and as they say the rest is history.

The point is, just as the saying goes, those that fail to learn from history are doomed to repeat it, and for Malaysia, failing to deal with any property speculative bubble would spell trouble for the banks that have grown to rely more and more on households to drive their lending activity.

In the interest of financial stability and common sense, the move to act should be made soon.

Deputy news editor Jagdev Singh Sidhu is amazed just how much his house is “worth” in the secondary market.

By The Star (by Jagdev Singh Sidhu)

Positive outlook for Johor property market

JOHOR BARU: The property market in Johor is expected to remain positive in 2010 and 2011, given the improvements seen since the second half of 2009 and the first half of this year.

Johor Real Estate and Housing Developers Association (Rehda) branch chairman Simon Heng said demand for residential property has improved and that developers could expect a better year ahead.

He said the property market had regained momentum after experiencing a slowdown almost two years ago, due to the global economic downturn, which was caused by the US subprime crisis and European financial woes.

“Consumers’ confidence is returning and developers here are cashing in,” Heng told StarBiz. He said this could be seen from the many new property launches over the last 12 months. Heng said developers that took part in the Malaysia Property Expo in April this year had recorded RM200mil sales a month after the event ended.

He also said banks were offering attractive interest rates to buyers and consumers were spoilt for choice with the numerous loan packages available in the market. “Feedback from our members show that many first time property buyers are taking advantage of the good offers to buy houses,” he said.

SP Setia Bhd executive vice-president (property division, northern and southern regions) Datuk Chang Khim Wah said buyers started coming back into the market from mid-2009 onwards.

He said unlike 20 years ago, where the Johor Baru property market attracted a large number of speculators buying residential properties, owners-occupiers had now taken their place.

Chang viewed the presence of more developers in the Johor Baru property market as a positive sign as it would help raise the standard of products and services in the market.

He said the company’s four ongoing projects in Johor – Bukit Indah I & II, Setia Indah, Setia Tropika and Setia Eco Gardens – would keep the company busy for eight years.

Berinda Properties Group sales manager Lim Sung Heng said the Government’s move to improve road connectivity and public infrastructure within Iskandar in the last three years had led to the opening of new suburban developments in Johor Baru.

He said Singaporean investors were buying high-end houses as prices of private residential properties in the republic had skyrocketed and was beyond the reach of the average Singaporean.

Some of Berinda’s projects in Johor Baru include Taman Molek, Molek Pine, Impian Molek, Molek Square and Molek Groove.

By The Star

Astral unit buys land in Kuantan

PETALING JAYA: Astral Asia Bhd’s 65%-owned subsidiary, Syarikat Ladang LKPP Sdn Bhd, is acquiring 599.4ha in Kuantan from the Pahang State Agricultural Development Corp for a cash consideration of RM4.25mil.

Astral told Bursa Malaysia yesterday that the two parties had decided to revoke their original conditional agreement signed in December 2008 whereby Syarikat Ladang LKPP was to acquire 758.1ha in Kuantan for RM5.37mil.

It said its board felt the proposed acquisition of 599.4ha would be adequate for the initial phases of the development of the proposed Kuantan Hi-Tech Park.

Mah Sing gets green light

PETALING JAYA: Mah Sing Group Bhd has received notification that the Economic Planning Unit had approved its proposed acquisition of 44,313 sq m in Bukit Jelutong, Shah Alam, from Azeera Properties (M) Sdn Bhd for RM31.86mil, it says in a filing with Bursa Malaysia.

With the said approval, the sale and purchase agreement dated July 9 in respect of the proposed acquisition has now become unconditional.

PETALING JAYA: IOI Corp Bhd has completed the transfer of its 55% stake in Projects IOI (Mauritius) Ltd to Jewel Trade DMCC for US$2.75mil, it announced to Bursa Malaysia.

Accordingly, Project IOI (Mauritius) Ltd and its subsidiaries, IOI (India) Projects Private Ltd and A.P. Gems & Jewellery Park Private Ltd have ceased to be its subsidiaries.

The principal activity of Project IOI (Mauritius) Ltd and IOI (India) Projects Private Ltd is investment holding while that of A.P. Gems & Jewellery Park Private Limited is property investment.

By The Star

Astral Asia to buy smaller plot

PLANTATION, construction and property developer, Astral Asia Bhd, has reduced the size of land it plans to buy in Kuala Kuantan, Pahang, saying it is a much better fit for its mixed property development.

Astral had entered into a sale and purchase agreement with Lembaga Kemajuan Perusahaan Pertanian Negeri Pahang , to pay close to RM5.4 million for a 749.2ha plot of land.

Astral Asia is now paying RM4.24 million for a 599.4ha plot of land.

The land is a mature oil palm estate, known as Ladang Bukit Kuin, which has been proposed for a mixed property development incorporating, the proposed development of Kuantan Hi-Tech Park.

By Business Times