YTL Land breathes new life into 'old' townships

KUALA LUMPUR: YTL Land & Development Bhd will continue to rejuvenate old thriving townships and create modern integrated developments to lure local and foreign investors.

The company has a strong track record in urban rejuvenation, having undertaken projects in areas where other developers had avoided in the past, such as Pantai Dalam, Puchong, Sungai Besi and Sentul in the Klang Valley.

YTL Land, which has a market capitalisation of about RM1.4 billion and known for conceptualising Bukit Bintang, has spent a few billion ringgit to transform these areas into sought-after locations today.

It started with Pantai Hillpark, a "kampung" area about a decade ago, building condominiums with Spanish design and using metal instead of wood for some of the roof trusses.

YTL Land later unveiled its masterplan to redevelop Sentul Raya, a multi-billion ringgit project, which stalled during the 1997/98 Asian financial crisis.

As the 117 hectare site is divided by the Sentul KTM Komuter station and tracks, the concept of the masterplan characterises the two halves differently, thereby forming Sentul West and Sentul East.

Sentul East (43ha) showcases the Malaysian flavours and Sentul West (74ha) has exclusive residences, lakes and a private park.

The project, started in 2002, is the first private gated park in Kuala Lumpur and it would generate an estimated RM8 billion in sales, once completed.

YTL Land then embarked on another project in Puchong called the Lake Edge, making use of the existing natural attributes of the location, which includes the disused mining lake.

Following this, it launched Lake Fields in Sungei Besi, its fourth project in the Klang Valley.

YTL Land has used the surroundings of the ex-mining lake to create a successful residential enclave comprising bungalows, semi-detached homes and luxury terraced houses.

"Today, all these projects are thriving communities. New launches are fast selling. When we launched The Capers at Sentul East, it sold like hot cakes in two hours," YTL Land executive director Datuk Yeoh Seok Kian claimed.

Yeoh told Business Times that YTL Land is looking for more land to buy or develop jointly with private owners in the same areas.

The company is also eyeing urban renewal projects.

YTL Land currently has a land bank (with no holding costs) of over 800ha with a sales value of about RM12 billion.

Parent company, YTL Corp Bhd, is injecting prime land in Kuala Lumpur (KLCC-Bukit Bintang, KL Sentral) and Singapore (Sentosa Cove, Westwood Apartments in Orchard Road) into YTL Land for RM476 million (to be satisfied by cash and irredeemable convertible unsecured loan stocks).

Upon completion, YTL will transform into a regional player with track record in high-end residential and a bigger balance sheet.

By Business Times

Tabung Haji eyes more property investments

Lembaga Tabung Haji, a pilgrimage fund that manages some RM28 billion, wants properties to account for a quarter of its investments, from 15 per cent now.

Kuala Lumpur: Lembaga Tabung Haji, a pilgrimage fund that manages some RM28 billion, plans to invest more in property to grow its recurring income base.



It wants properties to account for a quarter of its investments, from 15 per cent now. Its properties are mainly in Malaysia and Saudi Arabia.

Group managing director and chief executive officer Datuk Ismee Ismail said Tabung Haji already has properties in Mecca and Madina and is eyeing more in Jeddah, which are all in Saudi Arabia.

"In Jeddah, the projects can be owned by us or via joint ventures unlike in Mecca and Madina where we are not allowed to own property but allowed to lease," Ismee told Business Times recently on the sidelines of the GLC (government-linked companies) Open Day media briefing.

Tabung Haji is reallocating its funds in line with current market conditions.

"We always review our asset allocation because the market is always changing. The share market, for example, can be very vibrant but when it is cool we invest in other instruments," he said.

It wants to invest more in Mecca and Madinah as well as in Europe over the next one to two years.

Tabung Haji currently earns a recurring income from its 25-year lease of the Hajar Towers Hotel in Mecca and the 10-year lease of the Moven Pick Hotel in Madinah, both in Saudi Arabia.

Ismee said the group has been seriously looking at investment opportunities in Saudi Arabia since 2008.

Apart from haj management of 26,000 Malaysian pilgrims every year, Tabung Haji also manages some RM28 billion of savings from some 5.8 million Muslim depositors in the country.

Besides investing in the the stock market and properties, the pilgrims fund also has operations in plantations, travel, construction and owns stakes in KFC Holdings (Malaysia) Bhd, shoemaker Bata, consumer goods giant Unilever, breadmaker Silver Birds Group Bhd and other listed and non-listed companies.

By Business Times

Talam in uphill battle

TALAM Corp Bhd, once the country's largest builder of low- and medium- cost houses, has unfortunately been making headlines for the wrong reasons.

Recently, the company reported a net loss of RM25.97mil for its first quarter ended April 30, 2011 versus a net profit of RM1.57mil in the previous corresponding period, mainly attributable to lower progress billings generated from the development projects during the quarter under review.

Revenue for the period plunged 43% to RM13.18mil from RM23.26mil a year earlier.

Talam slipped into PN17 on Sept 1, 2006, after its auditors failed to provide an opinion on its results for the financial year ended Jan 31, 2006. The company had also defaulted on term loans and bond obligations.

Its debt-restructuring exercise involves three parts a capital reduction and a share split, the issuance of new convertible instruments to address certain defaulted debts, and a proposed asset divestment programme.

According to reports, most of the debts stemmed from joint ventures on land belonging to state agencies, such as subsidiaries of Kumpulan Hartanah Selangor Bhd, Permodalan Negeri Selangor Bhd and Pendidikan YS Sdn Bhd.

However, over the years, Talam had been striving to reduce its gearing level. In the first half of 2010, Talam entered principal and supplementary agreements respectively with Menteri Besar Selangor (Inc) (MBI) to dispose of RM676.09mil worth of properties in settlement, principally of RM391.99mil due to MBI and RM266.26mil due to lenders.

On a good note, in June 2010, Bursa Malaysia also approved Talam's application to be uplifted from PN17 classification. As at April 30, 2011, the company's borrowings and debt securities stood at RM695.57mil.

In its note to Bursa Malaysia accompanying its first-quarter results, Talam said it was still facing a huge challenge in the low- and medium-end property sectors.

“Despite the uncertainty in the property development market, the group will endeavour to undertake all necessary measures to mitigate the adverse effects on the liquidity position of the group,” it said.

The company, when contacted, declined to comment on its prospects.

One property analyst believes that Talam should consider focusing fully on high-end developments.

“Generally, low-medium-cost developments tend to reap low returns,” he said.

Talam also said in its announcement (accompanying its first quarter ended April 30, 2011) to Bursa Malaysia that it was committed to completing the remaining development projects undertaken and expected to deliver most of the sold units to the purchasers by the second quarter of this financial year ending Jan 31, 2012.

According to its 2010 annual report, Talam has a total balance land bank of approximately 5,047 acres, mainly in Selangor, comprising a mixed portfolio of commercial, residential and industrial properties at various strategic locations in Ampang, Sepang, Puchong, Bukit Jalil and Rawang.

Its existing projects, namely Taman Puncak Jalil, Ukay Perdana, Lestari Puchong, Kinrara Section 3, Jalil Heights, Saujana Puchong, Danau Putra, Putra Perdana, Saujana Putra, Lestari Permai, Bukit Sentosa and Bandar Bukit Beruntung have a combined gross development value (GDV) in excess of RM10bil.

It also has a project in the pipeline, namely its Berjuntai Bistari project, which is to be developed over 15 years and will comprise approximately 3,500 units of residential and commercial properties with an estimated GDV of RM350mil.

In its announcement to Bursa recently following its first-quarter results, Talam said other than its current development projects, the group would go into joint-venture projects with reputable corporations.

A property analyst said Talam could approach developers keen on strategic partnerships.

“Collaborating in a project is one way to create better value by leveraging on each other's strengths and expertise. However, it is imperative if both parties shared the same goals and values,” she said.

According to its annual report, Talam has four on-going joint-venture projects currently, but with its own units.

The projects include the 252 units of terrace houses at Ukay Perdana, which is a venture undertaken by 50%-owned Good Debut Sdn Bhd. The development is part of the Ukay Perdana project in the vicinity of Bukit Antarabangsa and has a gross sales value estimate of RM96.55mil.

Other joint ventures include the Serenia Garden residential development project undertaken by 50%-owned Sierra Ukay Sdn Bhd, which has a GDV of RM615mil; the Sierra Selayang residential project undertaken with 50%-owned Cekap Tropikal Sdn Bhd (which has a GDV of RM963.9mil) and the Yin Hai Complex project undertaken by Jilin Dingtai Enterprise Development Co Ltd, a wholly-owned subsidiary of Larut Leisure Enterprise Hong Kong Ltd, a 50%-owned associate of the Talam Group.

By The Star

A resort island in Nilai?

The sky bungalows has a 70% take-up rate.

The idea of offering island living in Nilai, Negri Sembilan, sounds like pie in the sky, but to gain attention in the competitive property market, you have to think big and different sometimes.

The 350-acre Green Beverly Hills development in Putra Nilai (formerly known as Bandar Baru Nilai), with its inland resort island concept, is said to be the first of its kind in the world.

The brainchild of GD Development Sdn Bhd, Green Beverly Hills is on freehold land, and plans includes a five-star health-themed hotel, a 500,000 sq ft club house, condominiums, semi-detached homes, villas, and a shopping mall. The project, due to be completed in eight years, has a gross development value of RM4bil.

GD Development chief executive officer Lim Ching Choy says Green Beverly Hills was conceptualised as a upmarket residential community on a iconic lifestyle resort island.

“As far we know, there is no other similar development in the world,” says Lim in an interview with StarBizWeek.

At present, there are five lakes within the development. “We will link the lakes, and flood other areas, to create a canal system around the development, thus turning it into a man-made inland island,” he says.

According to Lim, it is the company's joint chairman Datuk David Yeat Sew Chuong who comes up with the idea.

“He was inspired by the castles and palaces he visited in Europe, South Korea, Japan and China that are surrounded by moats and lakes.”

Yeat is also the founder and chief executive officer of INS Bioscience Bhd, which is listed on the ACE Market of Bursa Malaysia.

Lim has extensive experience in property development, having served as chief executive officer in Mah Sing Group Bhd and Magna Prima Bhd within the past nine years. He was also formerly the managing director of Ho Hup Construction Co Bhd.

Engineering firm Angkasa Consulting Services Sdn Bhd, which has been involved in wetlands and lake developments in Malaysia and China, is the consultant for Green Beverly Hills.

Lim says water discharge and flow in the canal will be controlled by mechanical systems. “During periods of heavy rain, we can discharge the water when it reaches a certain level.”

Access to the development, over its water channel, will be via three roads. The development is touted as being strategically located, with the South Klang Valley Expressway and North-South Expressway as highway links.

“From Green Beverly Hills, it is a 10-minute drive to the KL International Airport (KLIA), a 15-minute drive to Putrajaya, a 35-minute drive to the Kuala Lumpur City Centre, and a 20-minute drive to Seremban. The Salak Tinggi KLIA Transit Station is just a five-minute drive away,” says Lim.

He points out that institutions of higher learning such as the Inti International University, Nilai University College, Nilai International School and Universiti Sains Islam Malaysia are located close to the development.

Also in the vicinity are the Nilai Springs Golf & Country Club, NCI Hospital as well as Tesco and Giant hypermarkets.

Lim says other highlights of the gated and guarded development includes the availability of broadband Internet services, a “green environment” and a density of 5.7 units per acre (including condominiums) with about 2,000 planned property units.

He adds that a 50-acre forest, 20-acre organic farm and 20 acres of water (surrounding the island) are in the works. “Residents can buy produce from the organic farm with points accumulated via their property maintenance fees.”

A closed-circuit television (CCTV) camera surveillance and CMS (central monitoring system) will be put in place for better security on the island. “Each house is linked to the CMS,” says Lim.

Also, the company will make a submission for certification from Malaysia's Green Building Index soon. “All our buildings will incorporate a rain water harvesting system.”


Lim: As far we know, there is no other similar development in the world like Green Beverly Hills.

Earlier this year, two blocks of Sky Bungalow condominiums with 334 units sized from 932 to 1,816 sq ft per unit, were launched.

A unique feature of the Sky Bungalow condominiums, priced from RM487,200 to RM910,800 per unit, with one to three-bedroom types, is that each unit comes with a swimming pool.

Smaller units have 5 x 10 ft pools while bigger units have 5 x 14 ft pools. “We can provide an option for heated water in the pools, depending on request,” says Lim.

Another highlight here is the 12-ft ceiling of the units. One block of the Sky Bungalow condominiums is a 25-storey tower, while the other is a 20-storey tower.

Each floor has six to eight condominium units, with each allocated a car park bay. An extra car park bay for each unit can be rented at less than RM100 per month. “For those who need more than two car park bays, we are providing an additional 66 bays.”

To date, the Sky Bungalow condominium project has a 70% take-up rate. According to Lim, the Sky Bungalow condominiums will be the only high-rise residential units on the development. “All other residential units here will be landed types.”

Also launched earlier this year were 17 units of four-storey Water Villa bungalows, each with a built-up area of 4,769 sq ft and priced at RM3.167mil.

Each unit comes with a private lift. There are also 44 units of three-storey Garden Villa bungalows, each with a built-up area of 3,858 sq ft and priced at RM2mil. Lim is pleased by the take-up for the bungalows, as only two and 18 units of Water and Garden Villas respectively remain available for sale.

The condominiums and bungalows are due to be completed by the end of 2014 and 2013 respectively.

In July, Lim plans to launch 148 units of three-storey semi-Ds, each with a built-up area of about 3,600 sq ft and priced at RM1.7mil onwards. According to Lim, to date, about 30% of the buyers are foreigners. “The foreign buyers are mainly from Singapore, with the rest from Indonesia and Hong Kong.”

Green Beverly Hills is GD Development's maiden and only foray in property development. The company was incorporated in 2009. Lim says the company has no other property development plans. “For the next eight years, we will focus only on Green Beverly Hills.”

By The Star

Now everyone can have a home?

The robust property market is a double-edged sword. On one hand, the appreciation in property prices has the potential to churn out many more wealthy individuals and property developers are among the big beneficiaries of this strong property market.

On the flip side is the increasing burden on the general public who have to cough up more to own a property today.

The rising cost of living caused by creeping prices for a broad range of consumer items is a double whammy and will have a big impact on the middle and lower income groups. If left unchecked, it may result in greater disparities between the haves and have-nots.

It is important that the Government's affordable housing programme be accorded top priority to ensure more reasonably priced housing units are built in various parts of the country.

Initiatives such as the My First Home Scheme (MFHS) will serve to lighten the burden on young Malaysians aged between 18 and 35 purchasing their first house through the provision of 100% loan financing.

The initiative will have a higher success rate if it is supported by enough sizeable land parcels dedicated for the MFHS projects, and reputable developers are roped in to build these schemes.

And it is important that any concerns voiced out by the public and industry players be addressed and ironed out early on before they mar the success of this noble project.

The Government's latest initiative to dedicate a portion of the old Sungai Besi airport land for quality affordable housing by the developer, 1Malaysia Development Bhd (1MDB) is most timely.

Prime Minister Datuk Seri Najib Tun Razak says the scheme, dubbed Perumahan Rakyat 1Malaysia (Prima) to be launched next month, will offer homes at below market value as part of a public-private partnership to provide affordable housing.

I believe another idea that can be adopted to help alleviate the hardships caused by rising house prices is to introduce “no frills” housing projects as an option for house buyers who choose to pay the minimum for a house.

Just like the model adopted by low-cost carriers or budget hotels, buyers will only be charged what they have signed up for.

If they opt for the no frills unit, they will only have to pay for the land, the house structure, and the can't-do-without items.

Those who want to have their units fitted with all the usual finishing like decorative tiles, plaster ceiling and built-in furnishings, should also be given the choice to do so.

This model will minimise wastage as it is a well known fact that many new house owners will choose to renovate their house before moving in. Many times, the whole interior structure and room partitions are knocked down, only to be rebuilt.

If these house buyers are allowed to choose the “minimalist” unit instead of the standard “fully dressed up” one, they can save substantially on their property.

Although offering such flexibility may mean more work and lower margin for developers, the one who has the foresight to take up this idea may stumble on a winning formula and win over a big customer following.

Just like Air Asia's gutsy founder, Tan Sri Tony Fernandes who has taken budget air travel to a whole new level, a “no frills” developer will also emerge a big winner by moving into a new, uncontested market.

It is heartening to note that amid the growing materialism among some sections of the populace, there are people who make it a point to serve and contribute, rather than be served.

Many inspiring stories have emerged about individuals who are selfless and go out of their way to help other people and contribute towards a better world.

Giving editorial space like what The Star is doing through the “Be Inspired” initiative, to individuals who have achieved success despite the odds stacked against them, and those who selflessly contribute their resources, either in kind, time or effort, for the well being of other people, can inspire others to take action and chip in however small the effort may seem.

Although it may just be a mere drop in the vast ocean, the important thing is that we start to take action which cumulatively will become a force for more positive change to take place either on the individual or the society as a whole.

And initiatives like “The Giving Pledge” by Microsoft co-founder Bill Gates and billionaire investor Warren Buffet, that asks the wealthy to donate half their fortune to charity, will hopefully give birth to more philanthropists among the super-rich.

Having high profile individuals do their bit for the larger good of humanity is a great way to create awareness of the goodness of giving.

I believe this is one of the positive effects of globalisation as the vast movement of people and multinational corporations turn the world into a big global village. Hopefully it will serve to instil greater empathy and lessen the differences between people from the various continents.

There is no stopping the rapid globalisation underway now, and even the property industry is a party to this with more property developers taking to the global stage.

This should be a golden opportunity for developers from the more developed continents, including those from Malaysia, to help out with efforts to house the many millions of homeless people, including slum-dwellers, in the poorer and less developed countries today.

Deputy news editor Angie Ng hopes a “white knight” developer with a big heart will be the first to champion the “no frills” housing project model in Malaysia.

By The Star (by Angie Ng)

High-speed rail will spur growth in hub cities

Rail-link: The Eurostar train link has helped to strengthen economic activities in both London and Paris. — AFP

The Kuala Lumpur-Singapore High Speed Rail (HSR) has been highly anticipated ever since the Malaysian Prime Minister announced in September 2010 the instigation of the HSR connecting the two neighbours. Initiated by YTL Corp Bhd way back in the late 90s, this RM8bil to RM14bil project has so far received mixed views from the public.

HSR has been operating long ago in our Asian counterparts especially in Japan, China, Taiwan and South Korea. For comparison, China's HSR network by the year 2013 will be at 6,000 km, exceeding Japan's HSR network of 2,459 km. Last year, in the United States, the Obama administration invested US$8bil in federal stimulus money to create 13 high-speed rail corridors and billions of dollars of new business and tens of thousands of jobs are expected to flow to four hub cities Los Angeles, Chicago, Orlando and Albany, NY where plans for major high-speed rail networks are located.

It was reported at the Conference of Mayors that the benefits of travelling between 110 mph and 220 mph will mean better connectivity, shorter travel times and new development around train stations. The changes will create 150,000 new jobs and some US$19bil in new businesses by 2035. The rail network is also expected to spur tourism, give businesses a wider pool of workers to choose from and help grow technology clusters in cities.

Similar to experiences in other countries, in Malaysia, HSR will also generate substantial economic benefit to both countries, particularly Kuala Lumpur City Centre and the Iskandar region. The availability of HSR will shorten the distance between Malaysia and Singapore in terms of travelling time, hence attracting a larger pool of market catchment to stay in Malaysia and work in Singapore or vice versa. Straddling around 400 km, the proposed HSR will reduce travelling time to Singapore to 90 minutes compared to existing trains which take about seven hours. The significant reduction in travelling time will attract foreign companies to operate in Kuala Lumpur or Iskandar.

While the occupation cost (gross rental rate) for prime office space in KL City Centre range between RM6 per sq ft (psf) and RM8 psf, the cost in Singapore range between RM25 psf and RM30 psf. Meanwhile, the current rental rate in Johor Baru, where most of the buildings are more than ten years old, range from RM1.40 psf to RM3 psf. The low rental market in Johor Baru is hardly surprising as it is mainly domestic-demand driven. With ambitious Iskandar initiatives coupled with various investment friendly policies, the HSR will further augur the Johor Baru office market, hence attracting more MNCs to operate in Johor Baru. Upon completion of the HSR, gross rental rate for new Grade A office towers in Iskandar is expected to hover between RM4.50 psf and RM4.80 psf, 50% to 60% higher than the highest rate achieved in Johor Baru city centre.

Meanwhile, average selling price for existing condominiums in Johor Baru range from RM230 psf to RM370 psf. Capital value for existing condominiums in Johor Baru registered mixed performance from as high as 23% growth while some even noted depreciated values by -19%. Imperial@Puteri Harbour registered the highest selling price at RM400 psf. I believe the HSR will add vibrancy to the high rise properties in Johor Baru. Current average rental rate at RM2 psf in Johor Baru is estimated to increase by 50% to 60% arriving at RM3 psf, which is still below Kuala Lumpur rental rates, averaging at RM4.50 psf. Therefore, it is timely for the HSR to be in place as it will help improve demand from locals and Singaporeans for high-rise residential properties.

The tourism industry has grown favourably, with tourist arrivals increasing from 5.2 million in 1997 to 24.6 million in 2010 in Malaysia and 10.2 million to 11.6 million in Singapore during the same period. The proposed HSR is also expected to create positive impacts to the tourism industry of both nations. With combined tourist arrival of about 35 million coupled with 90 minutes commuting time, Kuala Lumpur-Iskandar-Singapore will be able to position themselves as the transportation hub of South-East Asia as it will provide tourists a wider airline selection to choose from either in KLIA, LCCT or in Changi Airport hence, improving international access to the region. In addition, the HSR in Shanghai and Tokyo are one of the “must see” tourists' attractions in the respective countries.

Manufacturing will remain as one of the sources of income to both nations. As land in Singapore is becoming scarce with limited land for expansion, coupled with escalating business costs, the HSR would enable some companies to expand or relocate to Malaysia, particularly in the Iskandar region. Moving manufacturing activities to Iskandar would allow the land to be used for even higher value activities. Malaysia's relatively liberal immigration policies and substantially cheaper labour costs in Iskandar compared to Singapore will reduce the operating costs. The relocation of manufacturing activities to Iskandar via the availability of HSR is expected to raise the contribution of the manufacturing sector to the nation's GDP by 6.5%.

The closer cross-border link between Malaysia and Singapore will eventually position the region as the first South-East Asian “mega region” similar to Tokyo-Osaka via the Shinkansen Bullet Train, and Shanghai-Hangzhou via the Huhang High Speed Rail among others. While it is noted that existing mega regions are within the same country under the same political driver, with strong political determination, deeper mutual understanding and putting aside all long standing aggravation, Malaysia and Singapore can materialise the idea. We should learn from the European experience; the Eurostar train link has helped to strengthen economic activities in both London and Paris.

In essence, the HSR will economically benefit both nations and strengthen economic ties between the two nations. A larger joint economy will result in larger land area, larger population and larger market, offering greater economies of scale. In addition, larger joint economy with a more diverse mix of skills, types of companies, types of business activities and greater variety of business locations, could accommodate the diversity of talents, business activities, consumer preferences and skill sets. All this will be made possible via improved connectivity by the High Speed Rail, which has been proven to stimulate local economies and act as a driver of growth and thus help spur property prices.

Senator Datuk Abdul Rahim Rahman is executive chairman of Rahim & Co group of companies

By The Star (by DATUK ABDUL RAHIM RAHMAN)

Tambun Indah to ride on Penang property boom

KUALA LUMPUR: Tambun Indah Land Bhd expects to record strong revenue growth in the current financial year ending Dec 31, underpinned by the sustained property boom in Penang.

Its managing director Teh Kiak Seng said on Friday, June 24 there was strong interest in its ongoing projects due to the rapid industrial expansion in Seberang Perai. This was also due to the spillover effect from the high demand for residential properties on Penang island.

“At present, Tambun Indah has several ongoing projects on mainland Penang with total gross development value (GDV) of RM1.6 billion until 2016, which has positioned the group as a leading property developer in mainland Penang,” he said after the shareholders meeting.

Teh said since the beginning of the year, the group has recorded an increase in sales, both in terms of units and value, from its various projects.

“To date, we have sold more units than what we had sold in the first half of 2010. At this rate, Tambun Indah is likely to sell more units this year than what we did in 2010. Therefore, we are optimistic of a higher revenue base for FY2011,” he said.

Tambun Indah’s ongoing projects include Pearl Garden, Pearl Villas, Juru Heights, Carissa Park, Impian Residence, Dahlia Park and Tanjung Heights

Launched in 2009 and 2011 respectively, Pearl Garden together with Pearl Villas have a GDV of RM277 million.

“The RM277-million GDV projects are expected to contribute 45% to the group’s revenues in FY2011, compared to 35.1% in FY2010,” he said.

By The EDGE Malaysia

Ampang’s latest high-rise launched

Impressive: Tajol Rosli (left), looking at the D’Pines@ Ampang project model with Dr Foo and some others before the launch of the sales gallery.

A new residential high-rise property named D’Pines has just been launched in Ampang and is set to liven up the mature neighbourhood surrounding it.

“We are proposing a future development next to the condominium, a centre with facilities like badminton courts, a swimming pool, game room, hall and such. Those who can apply for membership to use the place are residents in Taman Nirwana only,” Sri Seltra Sdn Bhd (a member of City Motors Group of Companies) sales and marketing manager Michael Lip said, adding that there may also be retail space available.

While no other details available yet because the idea is still in the planning stage, what has already started construction is the two block 20-storey condominium towers. along Jalan Cempaka 6, due to be completed in early 2014.

“Block A will have 265 units while Block B will have 267. Both consist of units ranging from 1,321 square feet (sq ft) to 1,875 sq ft,” Lip said.

The carparks will be built in a separate block with a sundeck at the top of it.

“One of the main features of the deck is the freeform pool with sand beach while the other is the ‘forest park’. There will also be a playground, yoga zone, barbeque area and gymnasium,” he said.

According to Lip, selected units will also have a skydeck, an open air platform that can be considered as a second and more private balcony, accessible via the master bedroom.

As for the features of the units, all designs have minimum three bedrooms and two bathrooms.

The larger two units comes with wet and dry kitchen areas while most of the units have an utility room and yard.

Lip said that other features of the condominium is three-tier security, 24-hours CCTV and guards service while maintenance is charged at 20sen per sq foot.

“We also had several town villa and penthouse units that has been sold out. Currently, 70% of our units have been sold,” he said, adding that prices for the units start at RM380,000.

Former Perak Mentri Besar Tan Sri Tajol Rosli Ghazali, who had planted a tree in the area back when he was the Housing and Local Government deputy minister, launched the opening of the sales gallery recently.

At the event, City Motors executive chairman Datuk Dr Foo Wan Kien said the company has come a long way to be able to develop the land that was once filled with squatters.

“Through social responsibility, we resettled the squatters amicably to a medium-cost apartment in Sri Pinang just opposite this condominium where units are between 800 to 1,000 sq ft,” Foo said, adding that they believed in a win-win situation where the living standards of everyone is upgraded.

He said that one of the key attractions of D’Pines was its proximity to the city centre and other facilities such as the MRR2, Jalan Ampang, DUKE Highway, Ampang-Kuala Lumpur Elevated Highway and even LRT Ampang line stations like Cempaka.

“There are also plenty of hospitals, both government and private nearby and schools. There are also conveniences like Tesco and Carrefour Market close by,” he said, adding that D’Pines offers one of the lowest prices for a similar project in the vicinity.

He was also worried that a build- and-sell policy that seems good now may be harmful to the public.

“Not many can finance such projects as banks are reluctant to finance it. Bigger developers on the other hand will not be launching a housing scheme with more than 100 or 200 units, fearful of the market at the time of the project’s completion,” he said, adding this could lead to shortage of affordable homes.

Foo believes that incentives such as lower premium, soft loans or suggestions such as developers only collecting about half of the cost to cover construction costs be implemented by the government instead.

The show gallery that is located at the construction site of the project is open from 10am to 6pm daily.

By The Star

MGPA upbeat on Vista Tower

KUALA LUMPUR: Real estate investment firm MGPA expects its grade A office building Vista Tower (formerly known as Empire Tower), located at the junction of Jalan Tun Razak and Jalan Ampang, to be fully taken up by year-end.

MGPA Asia chief executive officer John Saunders said the building had already recorded a 60% take-up in the last six months. Refurbishment of the tower was completed at the end of last year.

“We have quite a number of potential tenants talking to us. By year-end, the tower should be full,” he said after a signing ceremony between MGPA and Maybank Investment Bank Bhd for a syndicated term loan facility worth RM1.2bil yesterday.

Saunders said the price for office space at the 62-storey tower ranged between RM8 and RM9.50 per sq ft.

“Currently, the tenant mix is 50:50 between local (tenants) and foreigners,” he said.

The RM1.2bil syndicated term loan facility is for The Intermark, which comprises the redevelopment of the Empire Tower, City Square, Crown Princess Hotel and Plaza Ampang.

MGPA, through its Asia Fund 2, acquired the properties in 2007 for about RM760mil. The entire redevelopment is expected to cost RM2.25bil.

“In 2007, (when) MGPA acquired the development, (the) property was underperforming and neglected but we've now turned it into a grade-A office space with A-list tenants, an international business class hotel managed by Doubletree by Hilton, and a retail podium that supports and integrates the development. We will soon be completing Malaysia's first pre-certified platinum LEED office tower, Integra Tower.”

Maybank Investment is the mandated lead arranger and bookrunner for the syndication which is participated by Malayan Banking Bhd as the main lender.

Saunders said MGPA would raise the rest of the funds via equity. “The (syndicated) loan is just liquidity management.”

Maybank Investment chief executive officer, Tengku Zafrul Tengku Abdul Aziz said the facility would add to the depth of the Malaysian ringgit syndicated loan market for 2011 which to-date stood at over RM5bil.

By The Star

Singapore's Healthway snaps up land near KLCC

Kuala Lumpur: A unit of Singapore-listed Healthway Medical Corp Ltd (HMC) has bought a piece of land near the Petronas Twin Towers in Kuala Lumpur for some RM80 million.

Sources told Business Times that the family-owned land, located on 19 Jalan Kia Peng, was sold to Healthcare Medical Corp's associate, Healthway Medical Development (Private) Ltd.

The buyer is said to have paid an estimated RM1,600 per sq ft for the site, measuring a little over 50,000 sq ft. The land is located just behind The Pearl condominium and between Suria KLCC and Pavilion.

A drive by the plot of land revealed that Zerin Properties is the exclusive marketing agent for the land. However, its chief executive officer Previn Singhe, when contacted to confirm the deal, declined to comment.

It was reported last year that the asking price for the piece of land was RM1,800 per sq ft and that it has potential for development.

Incidentally, Healthway Medical Development has incorporated a company called Healthway Medical Centre (KLCC) Pte Ltd. However, it is unclear if this company is related to the land buy in any way.

Healthway Medical Corp is Singapore's largest network of private medical centres and clinics of primary healthcare, dental and specialist services.

Last June, Singapore billionaire Peter Lim Eng Hock emerged as a substantial shareholder in Healthway Medical Corp. However, in October 2010, Lim, known as the Remisier King, ceased to be a substantial shareholder.

Lim made headlines in Malaysia last year when he bought a substantial stake in TMC Life Sciences Bhd. He is now the largest shareholder with 32.59 per cent of TMC, a private healthcare group.

Meanwhile, it was reported two months ago that Lim had bought 14ha of land in Stulang Laut, Johor, for some RM200 million. He was said to be planning to build a Thomson Medical healthcare facility there.

Singapore-listed Thomson Medical was taken private by Lim lastyear. It is described as a leading healthcare service provider in Singapore for obstetrics, gynaecology and paediatric service.

By Business Times

Johor set to house region’s largest film-making complex

JOHOR BARU: Johor is set to house the largest film complex in the region when Pinewood Studios Iskandar Malaysia (PSIM) opens its doors in 2013.

PSIM chief executive officer Michael Lake said the complex, on a 32.37ha site in Nusajaya, would offer state-of-the-art facilities for film production and related activities.

He said that among the facilities would be production offices, filmset construction areas and backlot (an area behind or adjoining a movie studio, containing permanent exterior sets for outdoor scenes in motion picture or television production).

The complex will have five fully air-conditioned and sound-proofed film stages with floor areas of between 1,400 and 2,800 sq metres, and two high-definition television stages of 1,100 sq metres each.

“It will become a one-stop centre, providing filmmakers with world-class facilities,” Lake said at a talk held in conjunction with the Careers, Businesses and Skills Carnival 2011 at Persada Johor here.

He explained that Malaysia had all the elements to make it attractive to film producers, such as its competitive exchange rate, lower production costs and interesting locations that could be used for filming.

“We hope to attract film production companies not only from Asia, but also Europe and the United States,” he said .

However, Lake pointed out that building the infrastructure alone would not suffice, and that PSIM needed to train talents in various cinematic, organisational and technical skills.

He added that PSIM would look into providing internship opportunities for locals who were interested in the film industry.

Lake said he had already begun marketing PSIM to the film industry overseas, and the reaction has so far been largely positive.

“Malaysia presents a new and exciting frontier, and film producers have been interested in learning more about the country,” he said.

He added that PSIM would work closely with Multimedia Deve­lopment Corp and the National Film Development Corporation to promote and market the complex both locally and overseas.

PSIM was established with RM400mil in investments in a joint venture between Khazanah Nasional Berhad and UK-based Pinewood Shepperton.

By The Star

Dijaya Corp to unveil projects worth RM762mil

PETALING JAYA: Property developer Dijaya Corp Bhd plans to launch three new projects this financial year ending Dec 31 with a gross development value (GDV) of RM762mil.


Tong: We will launch Tropicana Cheras, a residential project in Sungai Long some time between July and August.

Managing director Datuk Tong Kien Onn said the total GDV for the three projects was more than RM1bil but as the group planned to launch them in phases the GDV was RM762mil.

“We will launch Tropicana Cheras, a residential project in Sungai Long some time between July and August. The first phase of the Tropicana Danga project will be launched in the third quarter while the first phase of Tropicana Avenue, a mix development project with commercial centres and apartments, in Tropicana will be launched in the final quarter,” he told reporters after the group's AGM yesterday.

The group had in the last financial year launched projects with GDV worth RM800mil.

Dijaya had earlier said the group planned to launch property projects worth RM3.5bil over the next two years.

Tong said Dijaya would aggressively launch more new projects in FY12 and FY13 to achieve the RM3.5bil target.

He also said Dijaya was still looking for more land to acquire.

“Our current land bank of 140 acres is excluding the recently purchased land in Subang and Kampar. If we add up both parcels, our total land bank will be about 240 acres,”he said.

Dijaya had bought two parcels of land - one in Subang (88.5 acres) and another in Kampar, Perak with a size of 12.9 acres.

On the move by the group to embark into the hotel business, Tong said after partnering with hotel and leisure company Starwood Hotels & Resorts Worldwide Inc to develop W Hotel in Kuala Lumpur, the group was looking for other places for new projects.

He said the W Hotel would take about four-and-a-half year to be completed and the project would start by the end of this year.

Tong also said Dijaya would continue to focus on the local market for its businesses although it was open for any business potential in the overseas market.

He said the outlook of the property market in the country was still positive.

By The Star

UMLand plans projects with RM500m GDV

KUALA LUMPUR: United Malayan Land Bhd (UMLand) plans to launch new projects with a total gross development value (GDV) of close to RM500 million this year.

These projects, from both the township and niche divisions, are located within Kuala Lumpur and Is-kandar Malaysia, and are expected to enhance the group's earnings over the next two years.

The new projects will include a high-end residential project near the KLCC Twin Towers (joint venture with Bolton Bhd), a commercial development in Johor Baru, and the proposed development of a 240ha land near Pulai Jaya (a joint venture with Tradewinds Johor Sdn Bhd).

Two other projects are serviced residences in Kuala Lumpur's Golden Triangle and the waterfront boutique apartments in Nusajaya, Iskandar Malaysia.

In a statement, he said the good take-up rate of 60 per cent for the luxurious serviced residences called Suasana Bukit Ceylon, is expected to sustain when the project is officially launched today. Suasana Bukit Ceylon comprises 310 units of serviced apartments and is estimated to derive a GDV of over RM300 million with completion expected in 2013.

The waterfront project in Iskandar Malaysia has a GDV of RM190 million and will be launched in the third quarter of this year.

Group chief executive officer Pee Tong Lim said the improved economic climate has given the group some confidence over its future growth.

"The group's operating environment remains posi-tive ... UMLand continues to enjoy a sound financial position," he said.

For the financial year ended December 2010, UMLand registered a RM57.7 million net profit against a revenue of RM316.9 million.

By Business Times

Utd Malayan gains on property projects

United Malayan Land Bhd rose to its highest level in more than three years after saying it plans to roll out property projects with a gross development value of almost RM1 billion this year.

The stock gained 4.2 per cent to RM1.98 at 9:14 a.m. local time in Kuala Lumpur trading, set for its highest close since January 2008.

By Bloomberg

Pasdec to build more properties, venture in new business to boost profits

Pasdec Holdings Berhad will build more properties and venture into new businesses as to increase its profits this year.

Its chairman Datuk Seri Adnan Yaakob said Pasdec planned to la
unch properties worth about RM252 million this year in addition to various on-going development projects that it currently had.

"These will include the development of Pasdec Persona and Pasdec Avenue in Kuantan as well as Pasdec Perdana and Pasdec Idaman in Temerloh," he said after chairing Pasdec annual general meeting (AGM) in Kuantan yesterday.

Adnan, who is also Pahang Menetri Besar, said between 50 and 60 per cent of the houses to be built by Pasdec would be medium-cost units, which were the most sought after in the state.

To replenish its land bank, he said Pasdec also planned to acquire 120ha of strategic lands in Kuantan, Jerantut, Rompin and Temerloh.

"We are also seeking for development opportunities outside Pahang particularly in the Klang Valley.

"It could be either through strategic joint ventures or direct acquisition in order to help strengthen our position as a property developer," he said.

To diversify it business, he said the group also planned to invest in new sectors including renewable energy, green technology and oil and gas.

He said the state-owned Pasdec also planned to embark on the development of a mini hydro plant and the identified site would be announced soon.

At the AGM, Adnan also announced that Pasdec would pay a 2 per cent dividend per ordinary share for the financial year of 2010.

Although the group recorded a lower turnover of RM85.14 million last year as compared to RM103.2 million in 2009, it chalked up a profit of RM4.47 million last year compared with RM8.7 million losses recorded in the previous year.

By Business Times

Property developer Dijaya Corporation Bhd plans to launch three new projects

PETALING JAYA: Property developer Dijaya Corporation Bhd plans to launch three new projects this financial year ending December 31, 2011 with gross development value (GDV) of about RM762mil. Managing director Datuk Tong Kien Onn said the total GDV for the three projects were more than RM1bil but the group would launched them in phases that resulted the amount to be RM762mil. “We will launch the Tropicana Cheras, a residential project in Sungai Long sometimes in July/August.

Another project, the first phase of Tropicana Danga property project will be launched in the third quarter while the first phase of Tropicana Avenue in Tropicana, a mix development project that consists of commercial and apartments will later be launched in the final quarter,”he told reporters after the group's AGM today. The group had on last financial year launched projects with GDV worth RM800mil.

By The Star

Magna Prima to sell 94 shop offices

Magna Prima Bhd is targeting to sell all 94 units of four-storey shop offices in the first-phase of Boulevard Business Park @ Jalan Kuching (BBP) by the third quarter.

To date, almost 43 per cent of the 94 units have been sold at RM550,000 per unit.

Its Executive Director, Lawrence Lee Yek Hui, said BBP, with a gross development value of RM572 million, was expected to be completed by 2014.

"The second and third phase of the development consisting of a retail podium and a block of serviced apartments, will be launched by the third quarter of this year," Lee told reporters at the launch of the project today.

Buyers of the shop offices are entitled to interest free loans and a waiver on legal fees.

By Bernama

Hua Yang acquires Shah Alam land

PETALING JAYA: Property developer Hua Yang Bhd has acquired a 3.73-acre leasehold site for RM13mil in Section 13, Shah Alam, via a public auction.

In a Bursa Malaysia filing, the company said the site was planned for a a mixed commercial and residential project of 470 units, with a gross development value of RM175mil.

By The Star

Tradewinds to improve hotel brand and look

KUALA LUMPUR: Tradewinds Corp Bhd is forking out about RM60mil to refurbish its hotels to improve its branding and inject a fresh new look.

Group chief operating officer Arief Nasran Abdul Wahab said the refurbishment would take about three years with some of the hotels already under renovation last year.

“We will do it progressively and after the refurbishment, we expect to see an increase in the room rates by about RM30 to RM40 per room,” he said yesterday after the group AGM.

The group has six hotels under its stable Crown Plaza Mutiara Kuala Lumpur, Hilton Petaling Jaya, Mutiara Beach Resort Penang, The Danna in Langkawi, Hotel Istana Kuala Lumpur and Hilton Kuching.

Arief said that despite the possible increase in the room rates, the rates were still reasonable compared to other international hotels outside Malaysia.

“As an example, Hilton hotel in Singapore is charging an average of about RM605 per room while our Hilton Petaling Jaya is currently charging an average RM240 per room,” he said.

He acknowledged that the refurbishment would somehow affect the hotels' room inventory but said it would only be a “short-term pain” as they would benefit over the long term.

Touching on the group's property division, Tradewinds director/advisor PK Poh said the group would continue to create more value from its existing buildings such as Menara Tun Razak in Kuala Lumpur which was expected to undergo a major refurbishment early next year.

“We also have about 4,000 acres of land mostly in Johor and some in Penang and Kuala Lumpur that will be developed in time to come,” he said.

The group's 30-year old Menara Tun Razak would undergo a major refurbishment with its existing tower to be completely refurbished while the 4-storey annex block will be replaced with a new 40-storey office tower.

It is expected to be completed in four years, and Poh said the property's gross development value would jump to RM900mil-RM920mil from the current RM167mil.

By The Star

Malaysian developer seeks Asian partners

Malaysian-born property developer Maha Sinnathamby is looking for more development partners to accelerate his vision of completing his world class city in Australia.

Sinnathamby bought 2,860 hectares of land 26km west of Brisbane and has been transforming the timber plantation in Springfield into a city over the past 20 years.

Terry Honan, the business development executive from the company, is attending the Real Estate Investment World Conference in Singapore this week to identify potential development partners.

"The development potential at Springfield is huge with more than 9,000 residential lots further to be developed and 23,000 apartments to be built in the City centre," Honan told Bernama.

"With approval for over one million square metres of commercial and retail development space, the project provides an opportunity for major overseas developers to secure a huge development pipeline over a long period of time."

DTZ property consultants have been engaged to assist Springfield to find the right partners and the firm believes that Springfield is a good opportunity for major development companies.

"This project is unique and very ambitious but the hard work in building the major infrastructure is just about completed," DTZ said in a statement.

The city building project has reached a critical mass of 22,000 residents and a workforce of 8,000 people. The projected population of Springfield City is 130,000 by 2030.

The city is the hub of an area known as the western corridor and is one of the fastest growing areas in Australia.

The highway network to the project has been completed and the Queensland state government will complete the railway line and two stations in Springfield by 2013.

The Springfield Central Station will be a major station with regional bus connections at built cost of A$70 million.

Over 20 hectares of the project has been designated for Education City and is the home of the University of Southern Queensland and technical colleges.

Next to Education City is a further 52 hectares designated for Health City and will include a major hospital with 1,200 beds and all related health services.

By Bernama