Mah Sing to launch RM2.5bil projects

Tan Sri Leong Hoy Kum with a model of Icon Residence@Mont’Kiara

PETALING JAYA: Mah Sing Group Bhd will launch RM2.5bil to RM3bil worth of projects in the Klang Valley, Penang and Johor this year to meet its sales target of RM2bil for the current financial year ending Dec 31.

Group managing director and chief executive Tan Sri Leong Hoy Kum said the projects would comprise an array of commercial, residential and industrial properties.

The two commercial projects are Icon City Petaling Jaya and Star Avenue@D'Sara, while the industrial project is iParc 3@Bukit Jelutong.

Residential projects lined up for launch in the Klang Valley include Hijauan Residence in Cheras, Kinrara Residence, Aman Perdana, Bayu Sekamat, M Suites@Jln Ampang, M City@Jln Ampang and Garden Plaza in Cyberjaya.

There are also three residential projects to be launched in Penang Legenda@Southbay, Icon Residence and Ferringhi Residence. The project in Johor Baru is Sierra Perdana.

Leong said Mah Sing's RM2bil sales target for this year was higher than the record sales of RM1.5bil achieved last year.

As at April 11, the developer recorded sales of RM738mil, which was about 37% of its sales target for this year. Mah Sing also has unbilled sales of RM1.3bil as at Dec 31, 2010 that will be realised over the next two to three years.

For the financial year ended Dec 31, 2010 (FY10), Mah Sing achieved profit after tax and minority interest of RM118mil, a 25.5% increase over RM94mil in 2009. Group revenue for FY10 was also higher at RM1.1bil against RM702mil previously.

Leong said Mah Sing would aggressively expand its land bank and was now looking for suitable prime land in greater Kuala Lumpur, Penang island and Johor Bahru.

Last year, the group undertook 10 land acquisition exercises. This year, it has so far signed one deal.

“These are prime land which can yield remaining gross development value (GDV) and unbilled sales of about RM14.1bil. It should keep the group busy for the next seven years,” he added.

Leong said Mah Sing aimed to buy land that could provide GDV of RM7bil to RM12bil this year. He said the group had the resources to fund the acquisitions.

Besides making outright land purchase, the group is also open to joint ventures with land owners.

“We are scouting for land near the proposed MRT stations, as the new transport infrastructure would create higher value for these land,” he added.

Mah Sing's upcoming projects that are located near the proposed MRT stations along the Sungai Buloh-Kajang line include Star Avenue@D'Sara (near Taman Industri Sungai Buloh station) and One Legenda and Hijauan Residence (near Taman Suntex station).

Projects along the proposed circle line include M Suites (near Great Eastern mall stop), M City (near Ampang point station) and Icon Residence Mont Kiara (near Matrade stop).

Star Avenue@D'Sara, the first night-guarded concept shop-office development, is one of the first new commercial projects coming up along Jalan Sungai Buloh. The RM402mil project comprises 3-storey shop offices and retail lots.

The RM980mil Kinrara Residence is a medium-high-end residential project on about 139 acres in Puchong. It comprises superlink residences, semi-detached units and bungalows.

M-City@Jalan Ampang will feature residential suites, designer small-office home-office (soho), sky villas and boutique retail units on five acres of freehold land.

The RM1.2bil project is targeted for preview in the second half of this year. Its first-phase preview will be designer soho and 3-storey boutique retail shops.

Icon Residence Mont' Kiara will feature 260 partially-furnished residences with a GDV of RM408mil. The development will offer about 200 different unit layouts in three iconic towers of 26, 28 and 36 storeys.

Dubbed garden terraces in the sky, the residences will have price tags from RM1.148mil.

By The Star

Bolton suffers drop in profit to RM20.3m

Bolton Bhd's pre-tax profit for the financial year ended March 31, 2011 fell to RM20.34 million from RM50.7 million the previous year while revenue fell to RM243.23 million from RM257.47 million.

For the fourth quarter period ended March 31, its pre-tax profit dropped to RM4.84 million from RM16.66 million in the same period last year.

Revenue increased to RM87.51 million from RM74.17 million previously, the company said in a filing to Bursa Malaysia today.

It attributed the lower profit to mainly to the current work in progress for the new launches with all being at their initial stages.

Its new property launches are Arata (100 units of high end condominiums) located at Bukit Tunku, another 215 units of service apartments at Jalan Ceylon and the Wharf (a mixed commercial and residential development) located at Taman Tasik Prima, Puchong.

By Bernama

BDB to build condos in Alor Setar

Bina Darulaman Bhd (BDB) together with Belleview Bina Sdn Bhd (Belleview) will be developing a condominium here in the near future.

Work on the two-block unit named Kondominium Amansuri Residences, estimated at a cost of RM110 million, is expected to start in November with completion due in 2014.

Chairman of BDB Datuk Mohd Saad Endut said the proposal to build the condominium came about with plans to redevelop the existing Kompleks Tunku Yaacob and build an international standard hotel on a piece of land owned by the Kedah State Development Corporation (PKNK) and left idle the past 16 years.

He said the condominium will be built on a 1.469 hectare piece of land.

All the three projects will be built along the same row, he said during his speech at the signing of an agreement here today between BDB and Belleview for the joint development.

"The condominium will comprise two blocks of 22-storey and 25-storey respectively and will house a total of 227 residential units including six units of penthouse," Mohd Saad said.

Among the buildings' features would be car parks, swimming pool,
multipurpose hall, a pavilion, gymnasium and other facilities on par with the best condominiums around the country.

The condominium will also be gated and have tight security, he added.

With BDB's success record in Kedah and the achievements of Belleview in Georgetown, Mohd Saad said he was confident that the project would be a huge success.

"It would change the skyline of Alor Setar city besides increasing the state's coffer through tax collection and so on," he said.

Mohd Saad said that although the sales price has not been fixed for the condominium, he was confident that the price would be lower compared with prices in Kuala Lumpur and Georgetown.

Kedah Sato Sdn Bhd, a wholly owned subsidiary of BDB will be undertaking the construction of the condominium.

Meanwhile, Menteri Besar Datuk Seri Azizan Abdul Razak said the process of taking over the site of Kompleks Tunku Yaacob was going on and the request for the takeover of the building had already been sent to the state government.

"We expect that only in August we will be calling the involved family for the provision of compensation and we have not decided on the form of compensation that would be given," he said.

He also added the project had been delayed due to several unavoidable problems.

By Bernama

YNH Property enjoys higher Q1 pre-tax profit

YNH Property Bhd achieved a higher pre-tax profit of RM21.43 million for the first quarter ended March 31, 2011, compared with RM20.55 million registered in the previous corresponding quarter.

However, revenue declined to RM55.26 million, from RM93.80 million, registered previously.

In a filing to Bursa Malaysia today, the group said its performance was mainly derived from the recognition of progressive sales of its inventories, development properties and commercial properties.

It said the global economic climate remained challenging after almost three years from the 2008 financial crisis.

"Notwithstanding the challenging environment, the group had been achieving strong demand for its projects such as Manjung Point Seksyen 5, Taman Seri Melor, Taman Sejati III and Taman Pantai Remis in Seri Manjung as well as the balance units in Ceriaan Kiara in Month Kiara," it said.

The company expects sales from both the township projects in Manjung and Klang Valley to continue its contribution to the group's income.

By Bernama

iProperty launches GPS-based Android app

iProperty.com Malaysia, the country’s number one online property portal, recently launched Southeast Asia's first Android app for property search.

The new product was designed to give users real-time access to over 255,000 properties for sale and rent, iProperty.com Malaysia Sdn Bhd said in a statement today.

It said the launch followed the its very successful unveiling of its iPhone and iPad real estate search apps last year.

"Since its debut, these apps have seen tens of thousands of downloads and have been ranked number one in the Lifestyle Category in the iTunes App Store," it added.

A highlight of the Android app is its Global Positioning System
(GPS)-supported feature, enabling users to view in real time properties on the market near their current location via Google Maps.

By Bernama

Malton plans RM2.2b launches over next 3 years

PETALING JAYA: Malton Bhd plans to launch eight property development projects worth some RM2.2 billion over the next three years, as well as beef up its construction division.

Executive director Hong Lay Chuan said Malton's construction unit has about RM200 million-odd worth of jobs in hand and that the division currently contributes some 30 per cent to group revenue.

Hong told reporters after the company's shareholder meeting here yesterday that Malton is bidding for design and build projects from the private sector.

He did not rule out tendering for government projects, especially those that come under the Economic Transformation Programme.

"We are bullish on both sectors and hope to do better this year. We do anticipate high cost in land and raw materials but if market sentiments hold up, we should do okay," he said.

For the nine months to March 31 2011, Malton's net profit increased threefold to RM45.7 million on a revenue of RM294.5 million.

On property development business, Hong said Malton foresees the market to be strong this year as demand for new houses is increasing.

Malton's eight new projects comprise medium to high-end residential and mixed property developments, the majority of which are located in the Klang Valley and some in Penang.

Hong said Malton is poised to benefit from the new launches, based on the success of its existing projects in the marketplace since mid-2010.

Malton has five on-going residential and mixed development projects worth some RM1 billion in the Klang Valley.

Hong said the projects in Bukit Rimau and Mutiara Indah in Puchong, which consist of 101 units of shop units and terraced houses respectively, were sold out even before the launch.

"We are looking for landbank to expand our property development division hence the need to raise funds," he said.

Yesterday, shareholders approved Malton's plan for a rights issue to raise between RM139.3 million and RM156.6 million.

Malton will use part of the money to buy land and undertake property development projects. Some RM60 million will be used to pare debt.

By Business Times

E&O to venture outside Penang, KL

Eric Chan with an artist’s impression of Quayside condominiums in Seri Tanjung Pinang phase one.

EASTERN and Oriental Bhd (E&O) will be leveraging on its expertise and reputation as a lifestyle developer to undertake more upmarket projects outside its traditional markets of Kuala Lumpur and Penang.

Deputy managing director Eric Chan says the group is ready to take the next step to move beyond its traditional markets and that includes venturing overseas.

E&O's foray overseas will commence with the opening of an E&O Property Gallery and the first offshore Delicious cafe in Singapore in November.

“We hope this step-by-step initiative will promote the E&O brand and its unique lifestyle experience to the regional and global market,” Chan told StarBizWeek in a recent interview.

Through its range of lifestyle property and other related activities, he says E&O has set new industry benchmarks in terms of concept, quality, design, service and values.

“We have two hotels, the Delicious chain of restaurants, a marina and a shopping mall to complement our property development initiatives to promote a unique lifestyle experience for our buyers,” Chan adds.

In F&B, the Delicious Group is embarking on an expansion drive that will see the opening of more outlets, both locally and regionally.

Presently it operates five Delicious cafes, a Reunion Chinese restaurant, a DISH steakhouse and a Delicious Ingredients gourmet grocer in the Klang Valley.

The first Delicious cafe outside the Klang Valley was opened at Straits Quay festive retail mall in Penang early this month.

A new Delicious cafe will be opened in Sunway Pyramid in August. It will also cross over the causeway in November when a Delicious cafe makes its debut in Singapore.

Chan says E&O is also looking to expand its capacity in the hospitality sector by adding new rooms and service suites to its two existing hotel properties in Penang.

The Loan Pine hotel just underwent a major refurbishment and expansion which saw the number of its rooms increased to 90 from 50 previously,

E&O Hotel will have another 139 suites added to the existing 100 suites once the Victory Annexe block is completed next year. There will also be new facilities including retail outlets.

Chan says it is a natural progression for E&O to leverage on its hospitality management expertise honed through the years to introduce the E&O Concierge Services that provide pay-on-demand concierge services, starting with the Suites at Straits Quay.

E&O is also targeting to manage the serviced suites at St Mary Residences (if it clinches the management contract for the property), and its other future developments.

Its ongoing property projects include the Seri Tanjung Pinang phase one in Penang that will take another three to five years to complete and St Mary Residences in Kuala Lumpur.

E&O's Seri Tanjung Pinang phase two is currently at the masterplanning stage.

Among the Kuala Lumpur projects in the pipeline include condominiums at Jalan Yap Kwan Seng and Jalan Kia Peng, as well as the sale of prime bungalow plots in Damansara Heights.

Chan says although property development is local in terms of supply, “the demand is actually global.”

“Singaporeans make up about 30% to 50% of our total foreign sales, and there is also growing potential to be tapped from other emerging markets like buyers from China and India,” he adds. Chan attributes the strong foreign interest to the relatively lower Malaysian property prices compared with those in other regional markets such as Singapore, Hong Kong and Thailand.

“Liquidity is ample and banks offer friendly financing. At the same time, Malaysian developers continue to innovate and offer quality products which are on par with international standards. Given the reasonable price levels, they present an attractive value proposition to property purchasers,” he explains.

In particular, Chan is upbeat on the Kuala Lumpur and Penang property markets, with the ongoing public sector and infrastructure transformation plans for Greater KL which he says will draw investors and support the property market.

“Kuala Lumpur and Penang are among the most liveable cities in Asia. They emerged in the 8th position in 2010 according to EAC International (an agency that rates living conditions in major cities for expatriates),” he points out.

Citing figures from Malaysian Investment Development Authority, Chan says Penang's growing popularity among foreign investors, having emerged as the state with the highest inflow of foreign direct investment (FDI) totalling RM12bil last year, will give a boost to the property market.

“Another RM7bil of FDI has been committed to be invested in the state which will generate a wave of expatriate workforce for the island within the next three years,” he adds.

Other supporting factors include the ongoing improvements in Penang's key public infrastructure such as the international airport expansion project targeted for completion this year end, the construction of Penang's second bridge (by end 2013) as well as the enhanced connectivity to the state with more air flights into the island.

“Penang's heritage and cultural appeal (as a Unesco World Heritage site) has won it many accolades, including the 2011 vote by Yahoo as one of the Top 10 Islands in the World to visit,” Chan says.

By The Star

Sime eyeing more projects in Singapore

SINGAPORE: Malaysia's largest property developer, Sime Darby Property Bhd, is eyeing for new projects, especially redevelopment projects in Singapore, said managing director Datuk Tunku Putra Badlishah Ibni Tunku Annuar.

“We are constantly looking for new projects, but obviously as you see the land here is very scarce and expensive, so we are doing more on redevelopment projects. We have old warehouses, we convert them into office buildings that kind of projects but we own quite a few buildings in Singapore, so we collect rental,” he told Bernama.

For the tenants, Tunku Putra Badlishah cited one of the buildings the company had in Dunearn Road, Bukit Timah. “We rent out a lot of buildings to our own companies. The motor division, for example, is big in Singapore,” he said.

Asked whether Sime Darby Property is looking for more land for its future projects, Tunku Putra Badlishah said most of the land here was standard in that they are mostly government tendered. “We have tried in the past and we will continue to bid for them,” he said.

He said Singapore was a good market for Sime Darby Property. “We've been successful in Singapore. We have a team here already, so it makes sense for us to continue looking at Singapore,” said Tunku Putra Badlishah, who is here for the Building and Construction Authority Awards (BCA Awards 2011), which recognises excellence in the built environment.

Sime Darby Property's Idea House has been awarded the “Platinum Green Mark” recognition, the first time that the state-run BCA is awarding a platinum recognition in the residential category.

Tunku Putra Badlishah received the award on behalf of the company from the National Development Minister Mah Bow Tan, who also launched the inaugural Construction Productivity Award last night.

He said the Idea House was a prototype project. “It is a research and development project because all the learning that we got in this project, we will try to implement and incorporate as many features of the Idea House in our products.”

Tunku Putra Badlishah said from the Idea House, Sime Darby Property was able to produce photovoltic cells enough to produce to power the house.

“We've been implementing a lot of this switches almost six months ago. So all of our future projects will have some elements of sustainability,” he added.

Meanwhile, the BCA Award is an annual event to honour and pay tribute to displays of excellence in the built environment in the areas of safety, quality and sustainability and user-friendly. This year, it marks a few firsts in the building and construction industry.

By Bernama

Malaysian developers win 4 top Fiabci awards

KUALA LUMPUR: Malaysian developers have won four top places out of the 14 categories contested in the Fiabci International Prix d’ Excellence Award 2011 with another three being runners-up, making this year’s outing the most lucrative.

The winners, from nine countries namely the United States, China, India, Malaysia, Brazil, Russia, Hungary, Singapore and Cyprus, were announced in a gala event held in Cyprus on Thursday night.

The Malaysian developers who picked up the four awards were SP Setia Bhd, Gloharta Malaysia Sdn Bhd, Sunway Pyramid Sdn Bhd and The Western Langkawi Resort & Spa.

SP Setia won the award for Precint 3 Setia Eco Park in the low-rise development category, Gloharta’s Bunga Raya Island Resort and Spa in Kota Kinabalu was the winner in the resort development category and Sunway Pyramid’s mall expansion was top in the retail development category.

The other winner was The Westin Langkawi Resort & Spa.

The runners-up were MMC-Gamuda Joint Venture Sdn Bhd’s Kuala Lumpur Smart Tunnel, Coronation Springs Sdn Bhd’s Springtide Residences in Tanjung Bungah, Penang, and Cahaya Jauhar Sdn Bhd’s Kota Iskandar (Phase 1) in Nusajaya, Johor. About 60 projects were submitted for the international award.

International Real Estate Federation (Fiabci) Malaysia president Yeow Thit Sang said this was an indication that our standards had gone up.

“For those who won, their victory is a marketing tool for them. It is a recognition of the holistic nature of their respective development and how it benefits the community it is intended for. They have won because they have met the criteria,” he said.

The successful outing, he added, was significant as it showed that the Malaysian property sector was evolving with new products and new concepts entering the market.

Setia Eco Park spans 790 acres of freehold land in Shah Alam of which 25% of the land has been set aside for lakes, gardens and walkways. It has extensive facilities like tennis courts, swimming pools, badminton and squash courts.

The award marked the SP Setia group as the only Malaysian developer to be recognised three times as a winner at the global level by Fiabci.

It was the second Prix d’Excellence Award for Setia Eco Park following its 2007 win in the Master Plan category.

“We are extremely proud of this achievement and recognition given by an international world body like Fiabci. As the country’s No. 1 property developer, we hold our heads high as we carry the Malaysian flag abroad,” said SP Setia group president and chief executive officer Tan Sri Liew Kee Sin.

By The Star

MK Land Q3 profit jumps more than two-fold

PETALING JAYA: MK Land Holdings Bhd's net profit jumped more than two-fold to RM7.2mil for the third quarter ended March 31 against RM2mil a year ago due to stronger performance of the property segment.

Its revenue for the period rose to RM165.1mil from RM94.7mil a year ago.

Going forward, MK Land's executive chairman Tan Sri Mustapha Kamal expects “double-digit growth” buoyed by its on-going property projects and new launches.

In a briefing yesterday, Mustapha said the “momentum” for the group to achieve double-digit growth was already in place.


MK Land’s incoming CEO Lau Shu Chuan with Tan Sri Mustapha Kamal.

For the nine months ended March 31, MK Land posted a higher net profit to RM15.8mil on revenue of RM292.9mil.

The higher net profit was due to higher revenue and lower finance cost.

Its property development segment generated RM249.5mil, representing 76.2% of the total revenue for the nine months ended March 31. The revenue was mainly from its property projects in the Klang Valley, particularly its Damansara Perdana development.

MK Land had also appointed Lau Shu Chuan as its chief executive officer effective June 1, taking over from Mustapha. Lau is currently the chief operating officer. Mustapha will be redesignated as non-executive chairman.

Mustapha made a comeback as executive chairman on June 25, 2008 when the company was facing difficulties. The company posted a net loss of RM60mil for the financial year ended June 30, 2008 (FY08). He managed to steer the company out of turbulence and felt that it was time to pursue his charity works through his foundations - Yayasan Emkay Foundation, Orang Utan Island Foundation and Pulau Banding Foundation.

“I do not want you to speculate. There's no other reason,” he said when explaining his leave from the company. Mustapha will remain as the major shareholder of MK Land.

Lau agrees with Mustapha on the company's prospects. He said its products were well accepted in the market and that the group had a landbank of 5,000 acres with various developments.

On its gearing level, Lau said MK Land had managed to bring down its borrowing significantly. Its total borrowing stood at RM275mil against its shareholders fund of RM1.1bil.

“We will bring it (borrowings) lower. Our interest is eating into our profit. We have a systematic plan to bring down the gearing level,” he said. Lau, however, said the company's borrowings might increase as it bought new landbank and to finance its joint venture project to develop affordable housing in northern Bangalore, India.

Meanwhile, he said MK Land's shares were “undervalued”. He said the price, at over 30 sen, was still below the company's net tangible assets (NTA). As at March 31, MK Land's NTA stood at 87 sen per share.

By The Star

Govt’s active role in social housing vital

YESTERDAY, Housing and Local Government Minister Datuk Chor Chee Heung said the Government is monitoring the spike in house prices. He went on to say that it will not hesitate to implement measures to keep them under control. This is probably the first time the housing minister has come outright to state a fact that has been staring in our faces the last 18 months or more, particularly for landed units in the Klang Valley, Johor Baru and Penang.

Nevertheless, although the housing ministry has been relatively sanguine about it, Bank Negara has not. Last November, the central bank put in place a requirement for buyers of third and subsequent properties to have a 30% downpayment. Real estate personnel say buyers will adjust to this requirement in due time.

Early this week, Bank Negara raised the overnight policy rate which effectively led to banks raising lending rates by 30 basis points. This effectively will result in banks revising their lending, and deposit rates. Two banking groups have raised their base lending rates and base financing rates by 30 basis points to 6.6% respectively. These rates would affect lending rates of property, automobile and hire-purchase loans, among others.

So far, these are the only two measures that will affect the housing market. While the 30% downpayment was implemented to curb property speculation, the recent rise in interest rates will affect a whole gamut of things over and above more than just housing and the way people are buying into the property market. The raise in interest rates will affect the cost of doing business, among other things.

Housing is a very basic need. It is a terrible thing for a young person or even an older one to have to fork out rental every month, at the end of which, the house does not belong to him, but to the landlord. A tenant is effectively is helping the landlord to finance his housing mortgage. This does not mean investing in property is immoral or unethical. It is wise to invest, and that's a different issue.

With the way house prices are going up, and the way our salaries are not, and the rate of inflation today, those who do not have a property to their name, are not in an enviable position. They are being pressured on several fronts or more the negative effects of inflation on their earnings and savings, their continual need to rent and their continual depleting purchasing power.

In the story on public housing policies undertaken by China (see story below), the Chinese government is pressing developers to go into social housing because this basic social need can turn political. It can be used by ruling and opposition parties.

It is difficult to govern a country of 1.3 billion people. Although they are all Chinese, the Chinese population come from diverse minority groups with different religions, beliefs and communication. That is why the Chinese government uses putong hua or Mandarin, a single common language to unite the people. China looks at social issues very carefully.

Malaysia has a population of about 28 million. It must look at social issues like housing because we have a young and diverse population.

Although Malaysia has, and plan to, improve its social housing for the masses to include My First Home for first time house buyers, this scheme is only a part of the whole affordable housing scheme conundrum that is currently bedevilling this nation. There is also the low-cost housing scheme, which is also a segment of the affordable housing scheme plan. Low-cost housing schemes must also be improved as urban slum is another social problem.

There is a need for the Government to come right out with the logistics, location, pricing and its implementation to ensure the public that there is action behind the words. And to do it soon. Very soon.

While affordable housing is being planned and hopefully implemented real estate professionals are also calling for measures directed at the housing market in the form of reintroducing the real property gains tax on a sliding scale, requiring sellers to pay a stamp duty and not just the buyers and extending that 30% requirement to include the purchase of a second house, instead of the current ruling for the third and subsequent purchase. These measures, unlike the rising of interest rates, would directly affect housing and the speculative nature of this industry.

Assistant news editor Thean Lee Cheng thinks the Government should look at housing for the masses not only from a social stand point but as its duty, much like healthcare and education.

By The Star (by Thean Lee Cheng)

IGB allocates RM3bil for overseas assets

An artist’s impression of Mid Valley City. Tan says IGB has allocated RM500mil for the construction of the third and final phase of the development

KUALA LUMPUR: Property developer IGB Corp Bhd has allocated up to RM3bil for various assets acquisitions overseas this year, said managing director Robert C.M. Tan.

He said the acquisitions comprising mixed developments, including hotels in Europe and the United States, were in line with the company's expansion plan.

“We always look for deals and that's how we grow,” he told reporters after the company's AGM here yesterday.

Tan added the acquisitions would follow the company's successful move in acquiring and rebranding two hotels in New York last year.

Meanwhile, for the third phase of the Mid Valley City development, he said RM500mil was allocated for its construction, which was also the last phase of the commercial development. The construction was expected to commence within the next quarter and would take up to 30 months for completion, Tan said.

IGB is the developer of the Mid Valley City. On the possibility of moving Mid Valley City into the real estate investment trust (REIT), he said the company had no intention of doing so in the near-term.

By Bernama

Ensuring the success of affordable housing

News that affordable homes will soon be built through a partnership between the Government and private developers would certainly be welcomed by a growing number of Malaysians, particularly those struggling to buy their first house.

Details of the programme will be revealed in two months. One hopes that it would not only be implemented in the Klang Valley where the issue is most pressing, but also in other locations where home prices have risen beyond affordability levels.

Houses that fall under this category ought to be opened up to those in the middle income bracket as well (apart from the lower income group) while rules need to be in place to avoid them from becoming targets of excessive speculation.

The world over, there are various models of effective and successful affordable housing schemes that have worked for the benefit of the people. Closest to home is, of course, Singapore. With the mass rapid transit (MRT) project scheduled to start operations in 2017 in the Klang Valley, there is sufficient time for a partnership to identify the land suitable for affordable housing and to complete the project in parallel with the construction of the MRT.

But there needs to be one certainty - affordable houses must be built with quality in mind.

What the Government can do is to carve out a certain portion of land at identified areas for commercial purposes in the future;these pockets of land can be sold at market rates for commercial development and the money received could be used to cross-subsidise the residential component of the project.

The new dwellings should not be of low quality. If incomes are expected to rise in future, so will the demand for creature comforts. They would need the luxury of amenities provided by most of the apartments and condominiums in the Klang Valley, such as a swimming pool, gymnasium or even some tennis or badminton courts.

Maintaining such facilities should not be shirked and a monitoring agency should be set up oversee this matter.

The other thing the government should do ensure affordability in the greater housing market is to douse excessive speculation that has dramatically pushed up prices of homes.

A house is an asset class, not unlike equities. The difference is people can live without buying shares, but not if they can't afford a roof over their heads.

Therefore, more must be done to ensure the housing market reflects the fundamentals of actual demand and supply as close as possible.

One way may be to rein in certain liberties that foreigners currently enjoy in terms of buying houses.

Who hasn't heard of stories of tourists or foreigners in the country laden with bags of cash to buy houses or commercial properties at certain property launches?

These flexibilities largely benefit property developers and foreigners. Even so, they would be easier to accept if they didn't happen at the cost of Malaysians being able to afford homes. Of course, there are speculators among Malaysians as well. But where does it leave genuine house buyers?

There should also be a limit on the number of houses a person can own in the affordable segment and real property gains tax should be used to make flipping homes in the country less lucrative.

With Malaysians now able to buy just about any asset around the world as an investment, the freedom of making money will not be lost. They just have to look elsewhere to make a quick buck.

Deputy News Editor Jagdev Singh Sidhu wonders if it's a good idea to wear the new charcoal grey Liverpool away jersey during this current heatwave when he plays football this weekend.

By The Star (by Jagdev Singh Sidhu)

Hua Yang buys prime land in KL

KUALA LUMPUR: Hua Yang Bhd has acquired 1.55 acres of prime land in Desa Pandan Commercial Centre.

It plans to develop the land into a mixed serviced apartment and commercial centre with a gross development value of RM160mil.

“This is part of our strategy to expand our operations in the Klang Valley with our developments in Sungai Besi, Selayang and now, Kuala Lumpur City Centre,” said CEO Ho Wen Yan in a statement yesterday.

For developments in the Klang Valley, he said the company's strategy was to develop vertical communities in the form of high-rise apartments, complete with a retail space for the convenience of residents.

By Bernama

Prop Park buys land

HUA Yang Bhd’s wholly-owned unit Prop Park Sdn Bhd, has signed a conditional sale and purchase agreement with U Thant Square Sdn Bhd to buy leasehold land in Kuala Lumpur for RM32 million.

Hua Yang said it will build residential and commercial properties worth RM160 million on the land starting mid-2011.

It will be completed in three to four years.

By Business Times

IGB targets foreign acquisitions

Property developer IGB Corporation Bhd has allocated up to RM3 billion for various assets acquisitions overseas this year, said managing director, Robert C M Tan.

He said the acquisitions comprising mixed developments, including hotels in Europe and the United States, was in line with the company's expansion plan.

"We always look for deals and that's how we grow," he told reporters after the company's annual general meeting here today.

By Bernama

UOA gears up for IPO

KUALA LUMPUR: Soon-to-be listed property developer UOA Development Bhd signed a retail underwriting agreement with its underwriters, ahead of its initial public offering (IPO) on the Main Market of Bursa Malaysia next month.

The underwriters for the IPO were CIMB Investment Bank Bhd, RHB Investment Bank Bhd, OSK Investment Bank Bhd, HwangDBS Investment Bank Bhd and Hong Leong Investment Bank Bhd, it said in a statement.

UOA has received approval from the Securities Commission for the proposed listing of its entire enlarged issued and paid-up share capital of up to 1.2 billion 5 sen shares.

The IPO consists of an institutional offering of up to of 337 million shares to Malaysian and foreign institutional and selected investors (including bumiputra investors approved by the International Trade and Industry Ministry) and a retail offering of 70 million shares to the Malaysian public, eligible directors and employees of UOA Development, its subsidiaries and persons who have contributed to the success of UOA and its subsidiaries.

UOA Development through its subsidiaries and associated company is involved in property development, construction and property investment. Its development projects are in matured and prime locations, centralised within the Klang Valley.

As at Dec 31, 2010, UOA Development has a total saleable and lettable area of more than 300,000 sq m of properties under development with an estimated gross development value (GDV) of RM2bil to be completed over the next three years.

The company has a further total potential saleable and lettable area of more than 1.2 million sq m being held for future development projects with an estimated GDV in excess of RM8bil.

By The Star

Maju Assets to unveil RM4b Iskandar project

KUALA LUMPUR: Maju Assets Sdn Bhd, the property arm of Maju Holdings Sdn Bhd aims to launch a RM4 billion high-end project, primarily for the expatriate community in Iskandar Malaysia, Johor.

It is also planning a beach fronting expatriate village in Terengganu for RM200 million, its managing director Adam Radlan Adam Muhammad said.



For the 480-hectare project in Iskandar, it is in the planning stage and will be launched in two to three years, Radlan said.

Radlan said the the catalyst development will be a 18-hole golf course over 120ha.

He said what would make the development appealing are the specially-designed Spanish villas.

Radlan added that the pricing for the villas will start from US$300,000 (RM897,000).

"We are getting Emiliano Armani, a Spanish master planner to design the villas. He will oversee the master plan," Radlan said in an interview with Business Times recently.

The project, which has yet to be named and located in Ulu Tiram, will include semi-detached homes, link houses and a marina equestrian centre.

"The timing is right for this project. The government is pumping in money in Iskandar Malaysia and it has attracted foreign parties. Our immediate market will be Singaporeans," he said.

Three times the size of Singapore, Iskandar Malaysia spans 2,217 sq km and is a mixed use development planned for completion in 2025. The government is targeting investments of US$110 billion (RM329 billion).

For the project in Terenganu, Radlan said the company is targeting players in the oil and gas sector.

The gated community will have villas and serviced apartments, for long-term lease to foreigners.

Radlan said with the award of contracts by Petroliam Nasional Bhd, he expects more expats to live in Terengganu.

"We are talking to Esso, Talisman and Murphy Oil to lease the units when the project is ready," he said.

According to Radlan, this will be the first of its kind project in Malaysia.

The properties will feature modern living with a touch of traditional Malay architecture, preserving the heritage.

By Business Times

Hua Yang plans RM160m development

Hua Yang Bhd has acquired 1.55 acres of prime land in the Desa Pandan Commercial Centre, just opposite the Royal Selangor Golf Club (RSGC) here.

The company plans to develop the land as a mixed serviced apartment and commercial centre with an estimated RM160 million in gross development value.

"This is part of our overall group strategy to expand our operations in the Klang Valley with our developments in Sungai Besi, Selayang and now, Kuala Lumpur City Centre," said Hua Yang Chief Executive Officer Ho Wen Yan in a statement today.

For developments in the Klang Valley, he said the company’s strategy was to develop vertical communities in the form of high-rise apartments, complete with a retail space for the convenience of residents.

"We are looking at a modern lifestyle concept for the project with club facilities and amenities -- suitable for city dwellers who enjoy the sights and sounds of the city," he said.

By Bernama

Listing plan for Pavilion KL

Sources say that the assets under Pavilion Kuala Lumpur could be worth between RM4 billion and RM5 billion.

Kuala Lumpur: Datuk Desmond Lim Siew Choon is preparing to list Pavilion Kuala Lumpur, in what could be Malaysia's largest initial public offering of a real estate investment trust (REIT), sources said.

While details of the REIT are still sketchy, sources said that the assets under it could be worth between RM4 billion and RM5 billion.

Others, however, said the asset size may not be that large but its market capitalisation could be comparable to that of Sunway Real Estate Investment Trust (SunREIT).

SunREIT, listed last year, is the country's largest REIT with properties valued at about RM3.7 billion and a market capitalisation of RM2.98 billion as of yesterday.

Business Times understands that Pavilion KL's listing could happen as early as end-2011 and will include the retail portion of the mixed development.

It is also believed that CIMB Investment Bank, Credit Suisse and Maybank Investment will be involved in the deal.

Lim, who controls Malton Bhd, developed the mall via Malton's subsidiary Kuala Lumpur Pavilion Sdn Bhd.

The mall is owned by Urusharta Cemerlang Sdn Bhd, which is 51 per cent-owned by Urusharta Cemerlang Development Sdn Bhd and 49 per cent by Qatar Investment Authority (QIA).

A search with the Companies Commission of Malaysia revealed that a company by the name of Pavilion Reit Management Sdn Bhd had been set up.

Lim and his wife Datin Tan Kewi Yong each hold a share in this company, which was registered on April 7 this year.

The nature of business of Pavilion Reit Management is described as "management of real estate investment trust, investment holding and property management".

Officials of Pavilion KL, when contacted, did not say anything.

Valuers contacted to indicate the Pavilion KL asset size said that it would depend on the method used. It could be on the lower end if the comparison method is used (market price per sq ft) and on the upper end if the investment return method is used (income stream generated per sq ft).

While it is certain that the retail portion of the building, which has a total net lettable area of 1.37 million sq ft, will form part of the REIT, it is unclear if the corporate office tower with a nett floor area of 185,000 sq ft will be included in it.

Pavilion KL, opened in 2007, is said to be profitable. It is enjoying a 98 per cent tenancy.

Talk is that Fahrenheit 88, the shopping centre opposite Pavilion KL and managed by Pavilion KL, may later be injected into the REIT. The mall is now 92 per cent occupied.

Fahrenheit 88 belongs to Makna Mujur Sdn Bhd, which is owned by Pavilion International Development Fund Ltd, of which the principal is the QIA.

Last year, Urusharta Cemerlang (KL), owned by Tan Sri Zainol Mahmood and another individual, made history by paying RM7,209.80 per sq ft for the land in Jalan Bukit Bintang adjacent to Pavilion KL.

By Business Times