Scope of MRCB’s green project to clean up KL rivers yet to be known

PETALING JAYA: The exact scope of Malaysia Resources Corp Bhd (MRCB)'s involvement in the much-anticipated River of Life project, which aims to revitalise and transform the city's dirty rivers, is yet to be made known.

OSK Research said as a result of that, it was unable to estimate the financial impact of the project on MRCB. “Nevertheless, we believe the project will provide a sizeable future earnings enhancement to MRCB. Apart from becoming the project delivery partner (PDP) with Ekovest Bhd, we do not rule out the possibility of MRCB being appointed one of the contractors to undertake the river cleaning project,” it said in a report yesterday.

MRCB declined to comment on its involvement in the project when contacted by StarBiz yesterday.

Last Friday, Prime Minister Datuk Seri Najib Tun Razak launched the project which sought to transform the Klang and Gombak rivers into iconic waterfronts on par with waterways in cities like Amsterdam, London, Melbourne and Paris by 2020.

The RM4bil project is divided into three parts river cleaning, which would involve a 110km stretch along the Klang river basin; river beautification along a 10.7km stretch by the Klang and Gombak river corridor including pedestrian walkways; and corridor development.

OSK Research in earlier news reports stated that RM3bil had been allocated for the clean-up of the rivers with the balance for beautification works.

MRCB and Ekovest had told Bursa Malaysia in late February that the EkovestMRCB joint-venture (JV) had received a letter of intent (LOI) from the Government via Datuk Bandar Kuala Lumpur for the River of Life project.

The LOI, dated Feb 22, indicated the intention of the Government to obtain the services of the Ekovest-MRCB JV as the PDP for the project.

The River of Life project is an Entry Point Project identified in the Greater Kuala Lumpur/Klang Valley National Key Economic Area under the Economic Transformation Programme.

By The Star

Prime Minister launches 1Malaysia Housing Programme phase one

Prime Minister Datuk Seri Najib Tun Razak looking at a model at the launch of the 1Malaysia Housing Programme in Putrajaya today. Look on are Minister of Federal Territories and Urban Well-being Datuk Raja Nong Chik Zainal Abidin and Minister in the Prime Minister's Department Tan Sri Nor Mohamed Yakcop(extreme right). - Starpic by Mohd Sahar Misni

PUTRAJAYA: Prime Minister Datuk Seri Najib Tun Razak today launched phase one of the 1Malaysia Housing Programme (PR1MA) which involves the construction of 42,000 houses on 20 strategic sites.

He said eight projects were expected to commence this year and in 2012 on the 20 sites which had been identified in the Klang Valley, Rawang and Seremban.

He said PR1MA was specifically for moderate-income Malaysians earning not more than RM6,000 monthly regardless whether they work with the government, the private sector or self-employed.

"The government is aware of difficulties faced by the moderate-income group who cannot afford to purchase high-priced houses but at the same time not eligible to be considered for the existing low-cost public housing programme.

"The implementation of PR1MA will be of help towards achieving the National Housing Policy's objective to provide sufficient, comfortable, quality and affordable housing," he said when launching PR1MA's first site at Presint 11 here.

The first PR1MA scheme in Presint 11 provides 560 apartment units on 7.6 acres of land.

The prime minister said that under the PR1MA scheme, each unit would be sold between RM150,000 and RM300,000 depending on location and size, and the size of each unit would be between 800 and 1,400 square feet with three bedrooms and two bathrooms.

"The applicants must be first time buyers for the PR1MA scheme and need to occupy the house and they can obtain loan up to 105 per cent from selected financial institutions with a payback period up to 30 years," he said.

Najib who is Finance Minister said that to prevent speculative activities among buyers whose intention was to sell for immediate profits, PR1MA house buyers were not allowed to sell the house within 10 years.

"The government's real goal in implementing the programme is to see the people enjoy better lives by owning their own houses and not to give room for some buyers raking in gains from speculative activities," he said.

By Bernama

Mega multi-billion ringgit development project for Desaru

The 1.7km single-plane cable-styled bridge across Sungai Johor.

JOHOR BARU: The Government's investment arm, Khazanah Nasional Bhd, will unveil a multi-billion ringgit development plan for Desaru this year.

Sources told StarBiz Prime Minister Datuk Seri Najib Tun Razak is expected to launch the project in Desaru either in the third or fourth quarter.

The project will be undertaken by Khazanah's wholly-owned subsidiary Desaru Development Corp Sdn Bhd (DDC) which it acquired in 2010, inclusive of the latter's 1,618ha.

In the pipeline for the development is the building of two international class hotels to be managed by two of the world's renowned hotel management companies and a world-class golf course.

There will also be a theme park incorporating tropical, eco-adventure and water features and a convention centre to cater to the meeting, incentive, convention and exhibition segment.

“The Prime Minster will also declare Desaru as the leisure and tourism region for Johor at the unveiling of the development plan,'' said sources.

Khazanah's objective is to turn Desaru, on the eastern coast of Johor, into what Nusa Dua in Bali is now. Nusa Dua is known as an enclave for large international resorts in southeastern Bali.

Work on phase one of the development project will take place at the sites of the Desaru Resort Golden Beach Hotel, Desaru Holiday Chalet and Desaru Golf and Country Club.

A check by StarBiz to the three said properties recently showed that they have ceased operations and entrances to the premises were cordoned and parts of the structures have been pulled down.

Sources said there were even suggestions made by certain parties in Johor to the Government to include Desaru as part of Iskandar Malaysia economic region since Khazanah took over DDC.

Khazanah is developing Iskandar Malaysia's Nusajaya, one of the five flagship development zones in the country's first economic region via its controlled entity UEM Land Holdings Bhd.

“However, the Government feels Khazanah should focus on the leisure and tourism sector in its development agenda for Desaru instead of multiple sectors,'' said the sources.

Sources said Khazanah's role is to attract local and foreign investors to Desaru and they can either undertake the projects privately or on a joint-basis with Khazanah.

Sources said the development of Desaru would also complement the US$20bil integrated downstream oil and gas complex in Pengerang by Petronas in Johor's southeast region.

Dubbed Rapid or Refinery and Petrochemical Integrated Development, the project is aimed at building something larger than Kertih.

Workers in the oil and gas-related industry at Rapid, including expatriates and their family, would need to unwind and Desaru, just a short distance away from Pengerang, is the perfect place for them to do so.

The opening of the last 27km stretch of the 77km Senai-Pasir Gudang-Desaru Expressway early this month also reduces travelling time from Johor Baru to Desaru from two hours to about 45 minutes.

The RM1.4bil expressway links Senai to Desaru in the eastern part of Johor and connects to Pasir Gudang at the Tanjung Langsat industrial area via the Pasir Gudang interchange.

The last stretch includes the 1.7km single-plane cable-styled bridge across Sungai Johor, one of the longest of its kind in the world with a 500m span.

By The Star

Tebrau going for high-end projects

JOHOR BARU: Tebrau Teguh Bhd is shifting its focus to high-end residential and commercial developments from low to medium cost residential projects previously.

Executive vice-chairman Johar Salim Yahaya said it was a normal progression or transition for any developer to shift its focus to development projects that provided better yields.

He said the company believed that it had made the right move after seven years of involvement and experience in the low and medium cost to medium cost residential projects.

“The move is also in tandem with the positive demand for high-end properties within Iskandar Malaysia in recent years,” Johar told StarBiz after the company AGM recently.

He said the long-term growth of Iskandar Malaysia would be the key contributing factor to help boost the Johor Baru property market.

Johar said the company would benefit immensely from Iskandar Malaysia as its land bank was strategically located in the main growth nodes of the growth corridor.

It has 413.53ha of undeveloped land and 12km water frontage within the Tebrau-Plentong river basin development with a net book value of RM591.93mil.

“We want to maximise our land value and return with the right product and in this respect, water frontage properties always fetch good selling prices,” said Johar.

The completion of the Eastern Dispersal Link Expressway and the Second Permas bridge within the next two years would improve connectivity and accessibility to the eastern part of Johor Baru.

Johar said the company would be launching Botanica @ Bayu Puteri in October with the gross development value of RM165mil and the project on a 4.90ha site would keep the company busy for the next six years.

The selling price of the apartment unit for the first of the four apartment towers with the built up area between 1,300 and 2,600 sq ft would be at RM300 per sq ft.

For the financial year ended Dec 31, 2010, Tebrau Teguh recorded RM3.63mil net profit on RM108.97mil revenue against RM13.62mil and RM35.45mil respectively for the FY2009.

By The Star

Stemlife arm acquires land for RM6.8m

Stemlife Bhd (SLB)'s unit, Stemlife Properties Sdn Bhd (SL Prop) has acquired a vacant land, located within the Bukit Jelutong township in Damansara, Selangor from Mestika Bistari Sdn Bhd for RM6.79 million.

In a filing to Bursa Malaysia today, SLB said the purchase of the land, about 59,078 sq feet in size, will be funded by proceeds from the company's Initial Public Offering and internally generated funds.

The acquisition will enable the group, which is in the business of stem cell banking and regenerative medicine, to expand its laboratory facilities, it added.

By Bernama

Property sector was cut to 'neutral' at RHB

Malaysia’s property sector was cut to “neutral” from “overweight” at RHB Research Institute Sdn Bhd, which said the expectation of strong property sales and earnings growth have already been factored into the share price.

“Sentiment will turn slightly negative and we expect demand starts to soften possibly next year,” Loong Kok Wen, an analyst at RHB, said in a report today.

“The timing now is appropriate to be watchful on property stocks as we are now almost two years into the upcycle.”

By Bloomberg

Landed property still available for RM500,000

The supply of newly completed residential properties in Malaysia rose only 2.2% last year, a drastic slowdown from the 3%-12% range seen since 2001.

Those with a budget of half a million ringgit can still purchase decent landed residential properties that are not too far away from the Kuala Lumpur city centre, particularly in the Ampang area.

A search through the online property listing of Metro Homes Sdn Bhd turned up several interesting possibilities including a leasehold two-storey terrace house (five-bedroom/three-bathroom, on a 22ft x 75ft lot) going for RM500,000 in Taman Sri Watan, Ampang.

Also available was a leasehold three-storey terrace house (six-room/three-bathroom, on a 1,200 sq ft lot) going for RM470,000 in Taman Muda, Ampang Jaya.

A search via StarClassifieds also turned up a two-storey terrace house (three-room/three-bathroom), said to be located near the Kelab Darul Ehsan golf course, going for RM520,000 in Taman Tun Abdul Razak, Ampang.

There are also two-storey terrace houses selling in the RM500,000 bracket on the secondary market in Pandan Indah, Kuala Lumpur and Taman Ehsan, Kepong.

The online Metro Homes listing also showed options in Petaling Jaya including a a freehold one-storey intermediate terrace house (three-room/one-bathroom, on a 1,650 sq ft lot) going for RM455,000 in SS5.

Also offered was a leasehold Merdu Idaman one-and-half storey townhouse (four-room/four-bathroom, built-up of 1,800 sq ft) going for RM500,000 in Jalan Seroja, Kayu Ara, Petaling Jaya.

Our search also turned up a partly furnished freehold two-storey terrace house (six-room/three-bathroom, on a 22ft x 85ft lot) going for RM500,000 in SS14, Subang Jaya.

A report by C H Williams Talhar & Wong (WTW) issued in March this year, noted that due to limited supply of land, the development of the landed residential sector has shifted farther away from the Kuala Lumpur city centre.

“Last year, selected areas within Seri Kembangan, Puchong, Kinrara, Kota Damansara, Kepong became the hotspot areas for landed residential housing. Gated and guarded types of landed residential properties emerged as the popular trend in the Klang Valley,” says the report.

A recent CIMB Research report pointed out that last year, bungalows in Kuala Lumpur saw a 19% increase in prices, followed by semi-Ds at 16.7%.

The CIMB Research report noted that the strong property price appreciation for all residential properties was due partly to limited new supply last year, which had increased at the slowest pace since 1997 particularly in the Klang Valley, Johor and Penang.

“The supply of newly completed residential properties in Malaysia rose only 2.2% in 2010, a drastic slowdown from the 3% to 12% range seen since 2001,” said the report.

This could be one reason for the spike in the prices of landed terrace residential units in recent years in Klang. IOI Properties recently launched freehold two-storey terrace houses (priced from RM468,800 on 22ft x 70ft lots) in Bandar Puteri, Klang.

These are still more affordable options compared with Bandar Setia Alam, Shah Alam (located off Jalan Meru, Klang) where in early June, SP Setia Bhd launched freehold two-storey cluster houses (30ft x 55ft) priced from RM568,000.

It should be noted that renovated and partially furnished freehold two-storey terrace units (22ft x 75ft) in gated and guarded precincts within Bandar Setia Alam were transacted on the secondary market in the region of RM600,000 this year.

Also, on the secondary market, freehold and basic two-storey terrace units (22ft x 75ft) can be found in Putra Heights (adjacent to Subang Jaya) for about RM500,000.

Meanwhile, those desiring bigger-sized homes can check out bungalows in Rawang.

On the Metro Homes listing was a freehold two-storey bungalow (five-room/four-bathroom, on a 3,500 sq ft lot) going for RM510,000 in Taman Sri Hijau, Rawang.

Another option was a freehold fully-furnished two-storey bungalow (five-room/four-bathroom, on a 50ft X 80ft lot) going for RM450,000 in Bandar Country Homes, Rawang.

By The Star

LBS to launch high-end RM3.5bil D’Island Residence in September

LBS Bina Group Bhd, which is working towards developing more premier property projects, will launch D’Island Residence in September.

Located on 175 acres in Puchong, the development will comprise 237 super-link houses, 298 semi-detached homes, 148 bungalows and 352 high-end condominiums as well as two blocks of commercial units.

Managing director Datuk Lim Hock San says the project, with a gross development value (GDV) of RM3.5bil, will also feature a commercial hub.

It is expected to take five to seven years to complete, he says.

Lim says D’Island Residence will be developed based on the tagline Island Retreat, Urban Charm and will promote modern lifestyle living.

It will have a clubhouse and adopt environment-friendly features like rainwater harvesting system and light-emitting diode street lights.

At the soft launch of D’Island Residence in April, 71 super-link houses worth RM83.4mil were sold. The latest launch today will feature 74 semi-detached houses priced from RM2.38mil.

Lim says the development is projected to contribute 30% to 40% to the group’s revenue and earnings over the next few years.

“We are transforming LBS to move up the value chain to focus on higher priced products,” Lim explains.

Houses priced above RM350,000 will constitute 60% of those that will be built by LBS this year. For the past five years, abouts 90% of the company’s sales came from medium-low to medium-cost homes.

Lim says LBS will adopt more green technology and designs in its projects.

As part of its long-term initiative to focus on high-end residential property market, Lim says LBS will launch a re-branding exercise later this month.

LBS has engaged alpha245, the brand communications subsidiary of Leo Burnett, to provide professional advice and guidance on the exercise, Lim says.

“LBS is also improving on customer experience and the quality of its products,” Lim adds.

Known for building affordable homes, the company plans to focus on medium-high to high-end market segment to earn better profit margins.

Lim says LBS is targeting sales to hit RM650mil this year from RM422mil last year.

He expects sales to reach RM800mil in 2012 and RM950mil in 2013.

As at May 31, the company has unbilled sales of RM527mil, which will be realised over the next two years.

Lim says LBS will continue to build affordable homes priced below RM350,000, albeit on a smaller scale.

The company has been building affordable homes at Bandar Saujana Putra, its flagship development spanning over 835 acres in Selangor.

The self-integrated township was launched in February 2003 and has a GDV of RM3bil. Sales of RM850mil have been recorded so far.

LBS has handed over about 5,000 units of various types of properties in the township.

By The Star

Taking a cue from CapitaLand

Johor Baru city skyline and the city which is located within Iskandar Malaysia economic growth corriodr will benefit from the influx of local and foreign investments.

EARLY last year, UEM Land Holdings Bhd CEO and MD Datuk Wan Abdullah Wan Ibrahim brought up the high aspirations he has for the company and Iskandar Malaysia. He told StarBizWeek that he aspires to make UEM Land Holdings Bhd a global property development outfit the likes of Singapore's CapitaLand.


UEM Land Holdings Bhd managing director/CEO Datuk Wan Abdullah Wan Ibrahim

“We hope to one day play a similar role in Khazanah be what CapitaLand is to Temasek. We recognise that we are a relatively small player compared to the highly diversified property player like CapitaLand,” Wan Ibrahim said when talking about the plans he has for southern Johor economic region.

The time for Wan Ibrahim to make that aspiration a reality has come.

Early this week, Khazanah Nasional Bhd issued a joint statement with Singapore's Temasek Holdings Pte Ltd to develop RM30bil worth of real-estate projects in Singapore and Iskandar Malaysia, which is located in the southern part of Johor. It will be the largest property joint venture between the investment arms of the two governments to date. The implications are many and far reaching.

Iskandar Malaysia is Khazanah's largest property investment, while UEM Land is its property flag bearer. UEM Land is the master developer of 9,713ha Nusajaya township. Singapore-based CapitaLand Ltd, on the other hand, is South-East Asia's largest property company in terms of market capitalisation, with sprawling assets and interest throughout the region. It is one of Temasek's portfolio company in the real estate sector. The other portfolio company in the same sector is Mapletree Investments Pte Ltd.

“Iskandar Malaysia, by itself, is essentially Johor Baru, three ports and a domestic airport. Iskandar Malaysia plus Singapore is a different equation altogether. We are then have the additional Jurong and Port of Singapore Authority and Changi International Airport, which connects to over 200 destinations worldwide, with 5,000 arrivals and departures a week by 80 international airlines. In terms of banking and services, it is second to none in the South-East Asia region,” Wan Ibrahim says.

All that connectivity and infrastructure will be there for the state of Johor to leverage on, with sovereign backing from both sides.

UEM Land will not only be working with CapitaLand, it will also be working with Mapletree Investments Pte Ltd, another portfolio company in real estate development.

Two new joint-venture companies, M+S Pte Ltd and Pulau Indah Ventures Sdn Bhd, for joint-development projects in Singapore and Iskandar Malaysia respectively, have been established.

In an e-mailed statement, Wan Abdullah says Sunrise MS Pte Ltd, UEM Land's indirect wholly-owned subsidiary has been appointed together with Mapletree Investments to oversee the development and marketing of four land parcels at Marina South, located at the heart of the financial and business cluster in Singapore's Marina Bay area with a total permissible gross floor area (GFA) of 341,000 sq m.

In addition, UEM Land and CapitaLand have been appointed to oversee the marketing and development of two land parcels in Ophir-Rochor, located between the Kampong Glam Historic District and the Beach Road Conservation Area with a total permissible GFA of 160,020 sq m.

The development at these two sites totalling 501,020 sq m, will include office, residential, hotel and retail components with a total estimated gross development value of approximately S$11bil (RM27bil), subject to design and development plans.

“We have the expertise to undertake these two projects and are thus excited to be involved in the development of these two key sites in Singapore. We view this as an excellent opportunity to familiarise ourselves with the Singapore market and regulatory framework, in line with our aspiration to expand to regional markets.

“Our appointment also allows us to establish a close working relationship with two leading real estate companies from Singapore and I view the appointments as win-win for both parties for not only are we able to learn from each other but it also provide a platform for future collaborative opportunities both in Nusajaya and elsewhere.” says Wan Ibrahim.



It is an opportunity that other Malaysian developers would give a leg and an arm for. The last several years, Malaysian developers have been making forays into the city state. These include YTL Land Bhd, sdb Properties Sdn Bhd, the Sunway group, SP Setia and GLC Sime Darby group. With land prices so steep by comparison, one has to have deep pockets and a deep confidence that there will be demand for their offerings. In the case of UEM Land, the prize literally landed on them.

RAM Holdings group chief economist Dr Yeah Kim Leng views the cooperation very positively.

He says from the economic perspective, the synergies when Khazanah and Temasek pool their resources and capital to jointly undertake investments in the two countries will enhance the potential of their investments considerably. The positive spillover arising from the collaboration will be that a lot of things will be fast tracked. There is also a greater chance for success given their sovereign backing from the respective governments.

“It will go beyond real estate to attract other business ventures to enter Iskandar. The positive effect for UEM Land and Iskandar is greater because some of Singapore's excess capacity can be relocated to the Malaysian side given our large land resources. UEM Land will be able to upscale themselves. This is one of the benefits of the JV,” says Yeah.

Despite the difference in size Iskandar Malaysia is three times the size of Singapore Yeah says there is much opportunities for UEM Land, Iskandar Malaysia. “The positive effects of this JV goes beyond property development, UEM Land. It will broaden and deepen Johor's economic base.

“Regionally, there is greater integration from the perspective of the Johor-Singapore region and well as the greater Asean region. With China and India having their huge population to generate demand, this is an opportunity and a catalyst for Malaysia and Singapore and Asean to generate demand. Malaysia will be benefit more because our absorption capacity should be greater and some of the excess capacity from Singapore can be relocated to the Malaysian side,” he says.

The positive effects of the tie-up has already spill over to the private sector. A day after the Khazanah-Temasek announcement, Eastern & Oriental Bhd (E&O) issued a statement it will be partnering both state investment arms to develop an 84ha mixed development dubbed as a wellness township in Nusajaya, Johor. E&O's unit Galaxy Prestige Sdn Bhd has set up a 50:50 joint-venture company, known as Nuri Merdu Sdn Bhd, with Pulau Indah Ventures Sdn Bhd, a 50:50 venture between Khazanah and Temasek.

E&O deputy managing director Eric Chan says in a e-mailed statement that the targeted GDV is estimated at approximately RM3bil and the actual figure will be dependant on the final masterplan. The infrastructure works have already started and targeted for completion by end of this year. Depending on market conditions, this project should last us between five and 8 years.

Says Chan: “The term wellness' is a broad concept that encompasess the well-being of the overall body, mind and spirit. Our consultants and architects are setting out to weave “wellness” elements into the masterplanned development with a view towards providing a quality lifestyle that enriches the well-being of residents.


Work on the master plan will be completed by the end of this year, the next stage is getting approval from the authorities, he says.

Prior to this, the lifestyle property developer signed a partnership agreeement with Japan's Mitsui group, Mitsui Fudosan Co Ltd, to jointly develop residential properties in Malaysia and the region.

Chan says their venture into Iskandar with Pulau Indah Ventures Sdn Bhd has no connection with the Mitsui Group but an analyst says the recent developments will be synergistic for the Penang-based developer.

“They can sell their Iskandar, Penang and Kuala Lumpur projects,” says RHB Research Institute senior property analyst Loong Kok Wen.

She says up to this point, E & O is the only Malaysian developer working with CapitaLand in Khazanah-Temasek venture.

By The Star

How Sungei Buloh became the horticultural hub of Malaysia

GARDENERS all over Malaysia know of Sungei Buloh as the hub of horticulture in Malaysia. Centred on the grounds of the old leprosy hospital and settlement, Sg Buloh has, in the past 50 years, become the place to see what is new and available in garden plants.

In the early years of the 20th century, lepers were sent into exile to islands such as Pangkor Laut and Pulau Jerejak. In 1930, the hospital and settlement in Sg Buloh were established by the government of British Malaya to serve as a central facility to treat and house leprosy patients and the island settlements were gradually closed.

The patients lived in simple one-room duplex houses with a bit of land around each house on which they could grow vegetable and keep chickens. The patients and their families had practically no prospects of getting out and re-integrating with society at large.

By the 1950s the doctors were confident that leprosy had been beaten medically, but social acceptance of cured patients posed a huge problem. Then John Wyatt-Smith of the Forest Research Institute at Kepong a few miles down the road decided to do something about it. He arranged for about 30 able-bodied men from the settlement to be employed at the institute (now Forest Reserve Institute of Malaysia or FRIM). This was no small undertaking.

No other organisation was willing to offer employment. FRIM was able to take the lead because John Wyatt-Smith was such a respected and towering figure at the institute and the forest department.

When I joined FRIM in 1964, Wyatt-Smith had just retired, but the men from Sg Buloh had become indispensable. They did all the toughest jobs, moving heavy loads, felling trees, clearing land, and looking after the plant nursery.

In the process they earned the respect of their co-workers. Those not employed by the institute were encouraged by the hospital to take up the growing of ornamental plants, to sell by the roadside in front of their houses.

Slowly overcoming their fears, people in KL began to go to Sg Buloh to buy plants, because such plants were cheap compared with elsewhere. In the 1970s, the hospital organised a garden show, in which Lam Peng Sam and I were the judges.

My nurseryman at FRIM was Mat Isa bin Bulat. He died a few months ago, by then a highly successful businessman and living in a big bungalow in Sg Buloh. As a youth in Langkawi, Mat Isa's world crashed when he was diagnosed with leprosy. Sent to Sg Buloh for treatment, he was one of those selected to work in FRIM. I was at that time making an encyclopaedic survey of fruits, seeds and seedlings of forest trees.

This work would eventually be published in two thick volumes and become the reference textbook for those in the business of raising forest trees. At that time no such business existed.

Mat Isa looked after the hundreds of species of forest trees that I was raising, learning to recognise all the plants and their names. He learnt not only their Malay names but also their scientific names (Greek and Latin to most people) from the labels I attached to the plants. Then one day, he shocked everybody by announcing his resignation to go into business.

Kuala Lumpur was taking up urban greening in a big way and there was a willingness to try new species of trees from the forests. Mat Isa saw his opportunity. He could recognise and name hundreds of species of forest trees by their local as well as their scientific names. He rented land from his neighbours to set up nurseries in Sg Buloh, and was able to supply the growing demand.

I did not know how he was progressing until some years later when he overtook me on the on road to FRIM and waved cheerily. He was driving a Mercedes while was I driving my Datsun.

On another day, while having a drink with him in a kopitiam he told me how he had just lost a large sum of money. It was stolen from his car when he had stopped for lunch after withdrawing the money to pay salaries. It was something like RM 20,000. Did you report to the police?' He merely shrugged and said “what's the point”. I guess when one has been through what Mat Isa has been through, the loss of RM 20,000 is not such a big disaster.

Over the years, Sg Buloh has become the centre of a highly innovative network of self-made men and women engaged in the horticultural business in Malaysia. This network keeps thousands of people employed, not only in Sg Buloh but also in feeder nurseries outside KL, and as far as Cameron Highlands and Muar. New flower varieties are usually first offered in Sg Buloh before they appear elsewhere.

From its original hub at the hospital area, flower nurseries have been established in the surrounding area. Sg Buloh provides a good example of how the best commercial or industrial hubs come into existence organically' through time. It requires the interaction of many individuals, in unique ways, in some unique place.

Such a hub can be easily destroyed but not easily duplicated elsewhere. As an example of how planned hubs can fall short, we have the so-called green lane' on the road from the Sg Buloh junction to the Rubber Research Institute. All along one side of the road, the land has been divided and let out to nurseries, but such nurseries are strung out for several miles, and the road has become a noisy, busy highway.

It is unpleasant to walk from one nursery to the next and dangerous to park and re-park on the roadside. It is also impossible to turn back. At the historic hospital hub, one can visit a large number of different nurseries within a small area, in peace and quiet. Now that leprosy and been beaten and its hospital relegated to history, the horticultural hub and its historical buildings, especially the one-room duplex houses, survives as a reminder of a huge human tragedy overcome by human determination. The Malaysian horticulture industry will suffer a serious setback if its Sg Buloh hub is lost.

Botanist and researcher Francis Ng is the former deputy director-general of the Forest Research Institute of Malaysia. He is now the botanical consultant to Bandar Utama City Centre Sdn Bhd and the Sarawak Biodiversity Centre.

By The Star

Malaysia-Singapore joint venture a win-win enterprise

The involvement of the Malaysian and Singaporean governments in the development of real estate in Johor and Singapore is significant in more ways than one. It is not only a move that harnesses the benefits to be reaped from real estate development in both countries; there is also the political side of it, besides the social aspect.

The following may not be the best analogy, but it does sum up the relationship between the two countries. Imagine two lads from different countries, with no political, historical and economic baggage, coming together to build sand castles on the beach. It could be a beach in Singapore or Johor.

There is healthy competition and both lads benefit from their time together. You watch how I build, and I watch how you embellish your sand castles. Who will build the most impressive sand castles? Who gets to use the spade and pail first, if there is only one spade and one pail? These are little things, but sometimes little things can blow up to big ones and friendships are lost in the process.

Iskandar Malaysia, Marina South and Ophir-Rochor are the beach. Iskandar, by itself, already has a lot of superlatives. It is the first of several economic zones being promoted by the Government and so far, it has been the most successful, although it did not have an effervescent start in 2006. At 2,217 sq km, it is three times the size of Singapore. It is Khazanah Nasional's largest property investment.

This joint venture (JV) between the two governments will make this RM30bil real estate development one of the biggest in Malaysian real estate. Khazanah, incorporated in 1993, has investments in banking, steel, power, infrastructure, real estate, telecommunicaitons, healthcare and port development. The guardians of Iskandar Malaysia could not be more illustrious. The Prime Minister and the Johor Mentri Besar are co-chairmen, and they are advised by the Iskandar Development Regional Authority (Irda).

Established in 2007, Irda is the agency that regulates, plans, promotes and strategises Iskandar Malaysia's growth. The corporate motor that drives it is Khazanah, whose managing director, Tan Sri Azman Mokhtar, sits on the Irda board. There are two other GLCs involved in Iskandar, Iskandar Investment Bhd (IIB) and Danga Bay Sdn Bhd.

Let's go across the causeway. The personalities behind Temasek is no other than Ho Ching, who is executive director and CEO. She is also the wife of Singapore premier Lee Hsien Loong. At one time, Ho Ching was ranked third among the world's 100 most powerful women. Incorporated in 1974, Temasek Holdings is an Asia investment company headquartered in Singapore. Temasek owns a diversified S$186bil portfolio as at March 31, 2010, concentrated principally in Singapore and the emerging economies.

Temasek's investment covers a broad spectrum of industries: financial services, telecommunications, media and technology, transportation and industrials, life sciences, consumer and real estate, and energy and resources. Personalities aside, Singapore is one of the most vibrant economies in South-East Asia and our closest neighbour geographically. Our political and social ties go back a long way. In terms of infrastructure, financial services, logistics, the city state is far ahead.

In terms of real estate, its properties command a higher value than Malaysia's on a per sq ft basis. Residential developments in district 9 and 10, considered as prime areas around Orchard, are priced between S$2,000 and S$3,000 per sq ft. In less prime areas, it is about S$1,200 per sq ft. Our KLCC condominium prices have not come up close to that range; it is instead very project specific, from RM1,000 to RM1,800 per sq ft. Average prices for high-end condminium development in Johor Baru is about RM500 per sq ft.

In the rental market, while the occupation cost (gross rental rate) for prime office space in KL City Centre range between RM6 and RM8 per sq ft (psf), the cost in Singapore range between RM25 and RM30 psf.

In Johor Baru, where most of the buildings are more than 10 years old, the current rental rate 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.

Valuers are indignant when asked to compare Johor Baru prices with the city state. It is not possible to compare the two. With property prices having escalated so much in Singapore, Iskandar offers an alternative.

When the Iskandar idea was first mooted, the target audience were Singaporean investors. The city state's presence, in the form of Temasek and its portfolio companies like CapitaLand and Mapletree will lend credence and confidence to Singaporean investors, both large and small.

Assistant news editor Thean Lee Cheng hopes this JV will be another oppportunity to cement ties.

By The Star (by Thean Lee Cheng)

Magna Prima plans project in Australia

KUALA LUMPUR: Magna Prima Bhd will embark on its maiden overseas venture in Melbourne, Australia, with a proposed A$210mil development, Dynasty Living.

The company said in a statement the 25-storey, single-tower apartment project would be built on a 2,700 sq m site. It will feature 320 units, inclusive of one to three-bedroom apartments, and a two-storey penthouse.

Construction is expected to commence in the fourth quarter and the development is expected to be completed in 2013.

By Bernama

Last-minute bid blocks SunREIT from Putra Place

Kuala Lumpur: An eleventh hour court ruling yesterday barred Sunway Real Estate Investment Trust Bhd (SunREIT) from taking possession of the Putra Place located opposite Putra World Trade Centre.

The Court of Appeal yesterday granted a stay of execution on an order made by the High Court on June 28 2011 which declared SunREIT as the true owner of Putra Place. SunREIT was to move into the premises and take possession and control within 72 hours or at noon yesterday.

OSK Trustees Bhd, acting on behalf of SunREIT, had on March 30 2011 bid and won the building that had been put up for auction.

The Putra Place, which houses The Mall, an office complex, and the Legend Hotel, was auctioned off by Commerce International Merchant Bankers Bhd to recover loans given to property owner Metroplex Holdings Sdn Bhd.

Metroplex is claiming that SunREIT is not the registered owner and wants to nullify the public auction.

Following the High Court decision in favour of SunREIT, the previous owner filed a notice of appeal.

SunREIT, as the registered owner, moved into the mall and set up a management office in a vacant lot.

But it could not move into the hotel until it obtained a licence to operate the hotel. Its hotel licence was effective from yesterday.

Yesterday morning, Metroplex went to the Court of Appeal to seek a stay of the execution order granted by the lower court pending its appeal to the Court of Appeal and a July 7th date was fixed for hearing. But shortly after, SunREIT solicitors were told the matter would be heard at 4pm.

Meanwhile, SunREIT was allowed to enforce the order with the assistance of the police in case Metroplex failed to hand over the control and management of the property. Some 30-odd police personnel were at Putra Place yesterday.

At around 11.40am, some 15 Sunway management team were briefed on what the next course of action would be, including the process of entering into the hotel premises.

At around 12.20pm, reporters were informed that Metroplex's request for a stay would be heard at 4pm. Pending the decision, the management decided not to take possession of the building.

A Sunway Hotel van carrying support staff for the hotel were told to turn back. They returned later in the evening and were identified as operations personnel. This group was briefed and was on standby should there be any hotel employees (under the Legend hotel management) walking out.

The hotel had to run smoothly to avoid disruption to guests staying at the hotel. SunREIT solicitors will try and expedite the hearing of the appeal at the Court of Appeal.

By Business Times

Mah Sing banking on govt to hit RM5b target

KUALA LUMPUR: Property developer Mah Sing Group Bhd is eyeing government-related projects to help achieve its aim of RM5 billion in market capitalisation in five years.

With its track record and healthy financial standing, the company is optimistic of being able to work with the government especially in the 1,200 hectares of Rubber Research Institute Malaysia land in Sungai Buloh and the old Sungai Besi airport land, which is slated to be transformed into Bandar Malaysia.



Mah Sing's current market value stands at RM2.2 billion, having expanded tenfold from just RM189 million in 2005.

"Being a healthy company with a good track record and strong financial position, we believe the group definitely stands a good chance in these projects," managing director Tan Sri Leong Hoy Kum said after its annual general meeting yesterday.

"Mah Sing is very keen to participate in these projects via joint venture or land acquisition," he added.

To date, the group has 34 ongoing projects in the Klang Valley, Penang and Johor Baru, which yield a combined remaining gross development value and unbilled sales of RM14 billion between five and seven years.

Halfway into year 2011, the group has already achieved close to 60 per cent of this year's sales target of RM1.15 billion.

Mah Sing reported a higher net profit at RM41.2 million from RM28 million before for the first quarter ended March 31 2011. Revenue was 31 per cent higher at RM311.8 million.

Its shares closed 1 sen higher yesterday to RM2.61 with a volume of 393,700 shares.

Research firm Macquarie Equities Research has forecast that Mah Sing's earnings will grow at a compounded annual rate of 54 per cent for the financial years 2011 until 2013.

Meanwhile, Leong expects the positive sentiment in the property market to continue, riding on the favourable employment conditions and stable economic growth.

"It is a good time to buy properties now in view of the rising construction cost environment as buyers can lock in current property prices and enjoy borrowing rates, which are still very reasonable," he said.

Other factors that will help to drive the property sector include high impact projects like the MRT (mass rapid transit), young population base, high saving rates and affordable homes.

By Business Times

Mah Sing continues expanding

KUALA LUMPUR: Mah Sing Group Bhd will continue to acquire prime land and enter into joint ventures in future, to further boost its expansion strategy.

Managing director Tan Sri Leong Hoy Kum said the group was keen on both privately held and government land that could be developed as it had the track record, experience, branding and financial capacity to unlock and enhance the value.

“This year should be another good year, particularly for developers with a knack for creative product development and market strategies, among others.

“The mid to high-end residential segment in well-established locations should continue to thrive together with the mass housing market, echoing the Government's call to provide affordable housing,” he told reporters after Mah Sing's AGM here yesterday.

To date, the group has a total of 34 projects, all in Greater KL (Kuala Lumpur and Klang Valley), Penang and Johor Bharu, which yield a combined remaining gross development value (GDV) and unbilled sales of approximately RM14bil to last for five to seven years.

Leong also expected the positive sentiment for the property market to continue, riding on the favourable employment conditions and stable economic growth.

“It is a good time to buy properties now in view of the rising construction cost environment as buyers can lock in current property prices and enjoy borrowing rates, which are still very reasonable.

“Buyers should consider the developer's track record in terms of product delivery, quality, service and potential upside of the property,” he said.

He added that the group would maintain its focus on the local property market for its expansion plan.

For the first quarter ended March 31, Mah Sing reported a net profit and revenue of RM41.2mil and RM311.8mil respectively.

“We surpassed our shareholders' expectations last year and are working hard on achieving another good year in 2011 with more launches coming up in the second half,” Leong said.

Macquarie Equities Research, the latest research firm to have initiated coverage of the group, had forecast Mah Sing' earnings to grow at a compound annual growth rate of 54% over financial years 2011-2013.

In order to provide continuous value enhancement to shareholders, the group was aiming for a RM5bil market capitalisation within five years, from its present RM2.2bil.

By Bernama

Aussie apartment boost

The Australian apartment market is bucking a softening trend of the overall housing market, especially in Sydney.

Tighter Asian property rules lifting aparment market, especially Sydney

SYDNEY: Tighter government regulations introduced by some Asian countries to cool sizzling house prices are contributing to higher demand for new apartments in Australia, property services firm CB Richard Ellis said.

The Australian apartment market is bucking a softening trend of the overall housing market, especially in Sydney.

Capital growth for Sydney apartment units rose 3% in the year to May, while houses eked out only a 0.1% gain, according to research firm PRData-Rismark.

“The government tightening measures broadly across Asia are increasing the amount of interest in Australian properties,” Darien Bradshaw, executive director for CBRE's international project marketing in Asia, told Reuters yesterday.

Last year, Singapore introduced a new rule to cool property prices under which owners of Housing and Development Board (HDB) flats, or government-subsidised apartments, must stay in the property for five years before they can buy a second property.

The Chinese government has also introduced a series of new regulations including a home ownership tax to deter real estate speculation.

“There are limited options for the Chinese with money to invest other than keeping it in cash,” Bradshaw said. “So one of the options is obviously in the current climate is to look more and more overseas.”

He also said young couples who plan to raise more than one child are keen to own houses overseas, adding the targeted price range for Australian assets for Asian investors is anywhere between A$400,000 (US$430,000) and A$1,000,000.

“They've always got on the back of their mind ... where the second child may reside and live and be educated,” he said.

To capture the growing appetite for overseas assets among Asian investors, CBRE is casting wide.

Its sales teams in Hong Kong, Singapore, Kuala Lumpur and Shanghai, conducted a synchronised launch over a series of weekends to market a high-rise residential project in Chatswood, Sydney, called Metro Residences.

The efforts paid off with all 292 units offered in the first phase sold out in the first weekend in March.

Some Australian developers are positioning themselves for the Asian market.

Private property developer Meriton Group, headed by Australian billionaire Harry Triguboff, said it would develop in excess of 1,500 apartments in the next 12 months, compared with 1,000 units in the last year as demand from Chinese investors keeps growing.

“Chinese mainland residents have shown strong interest in our residential apartments with demand increasing every week,” James Sialepis, Meriton's national sales and marketing manager, said via an email.

He said 15% of Meriton's weekly sales were made to overseas Chinese, although the percentage was much higher if they include local Chinese buyers.

“Locations within a 15 km radius of the CBD that are serviced by good transport and educational facilities are in most demand,” he said.

By Reuters

SunREIT to double value of Putra Place

PETALING JAYA: Sunway Real Estate Investment Trust Bhd (SunREIT) expects to almost double the value of The Putra Place following an asset enhancement.

The Putra Place, to be renamed Sunway Putra Place, was bought via auction by OSK Trustee Bhd for RM513.95 million.

Sunway Reit Management Sdn Bhd's chief executive officer Datuk Jeffrey Ng said the value of the property could be RM1 billion as a result of a capital expenditure of between RM100 million to RM200 million to enhance the property.

"There will be additional retail space. After enhancement, the rental and occupancy rates will be more, in line with the market," Ng said.

Knight Frank had valued the property at RM576 million.

The Legend Hotel, that will be renamed Sunway Putra Hotel, enjoys an average occupancy of 60 per cent. The Mall, which will carry the name Sunway Putra Mall, has an occupancy rate of 80 per cent.

The office, that will be renamed Sunway Putra Tower is fully occupied.

Founder and chairman of Sunway Group Tan Sri Dr Jeffrey Cheah said it plans to bring back the glory that the property once had by upgrading the place to the standards associated with Bandar Sunway.

It could take anything between six months to a year to plan the upgrade and rebranding of the building.

Cheah was speaking at a briefing yesterday to clarify and explain the status of ownership of the Putra Place.

The Putra Place, which houses The Mall, an office complex, and the Legend Hotel, was auctioned off by Commerce International Merchant Bankers Bhd (CIMB) to recover loans given to property owner Metroplex Holdings Sdn Bhd.

OSK Trustees won the bid at the fourth auction held since April 2008.

Since then, there have been several parties including Metroplex which have initiated legal proceedings to block the sale.

However, on Tuesday, the High Court ruled in favour of SunREIT, stating that it is the true owner of the property and gave Metroplex 72 hours to deliver possession and control of the asset.

This means, that by noon today, SunREIT will move in as the new owner.

Nevertheless, it is understood that Metroplex has filed a notice of appeal.

Meanwhile, Cheah said he does not know the ex-owners of the building and it is merely a commercial deal. He doesn't have a personal agenda.

By Business Times

Mah Sing to continue land acquisitions, JVs

Property developer, Mah Sing Group Bhd, will continue to acquire prime land and enter into joint ventures in future, to further boost its expansion strategy.

Managing Director, Tan Sri Leong Hoy Kum said the group is keen on both privately held and government land, that could be developed, as it had the track record, experience, branding and financial capacity to unlock and enhance the value.

"This year should be another good year, particularly for developers, with a knack for creative product development and market strategies, among others.

"The mid to high-end residential segment in well established locations should continue to thrive together with the mass housing market, echoing the government's call to provide affordable housing," he told reporters after Mah Sing's Annual General Meeting here, today.

To date, the group has a total of 34 projects in Greater KL (Kuala Lumpur and Klang Valley), Penang and Johor Bharu, which yield a combined remaining gross development value (GDV) and unbilled sales of approximately RM14 billion to last for five to seven years.

Leong also expects the positive sentiment for the property market to continue, riding on the favorable employment conditions and stable economic growth.

"It is a good time to buy properties now, in view of the rising construction cost environment as buyers can lock in current property prices and enjoy borrowing rates, which are still very reasonable.

"Buyers should consider the developer’s track record, in terms of product delivery, quality, service and potential upside of the property," he said, adding, the group will maintain its focus on the local property market for its expansion plan.

For the first quarter ended March 31, 2011, Mah Sing reported a net profit and revenue of RM41.2 million and RM311.8 million respectively.

"We surpassed our shareholders' expectations last year and are working hard on achieving another good year in 2011 with more launches coming up in the second half," Leong said.

Macquarie Equities Research, the latest research firm to have initiated coverage of the group, has forecast Mah Sing' earnings to grow at a compound annual growth rate (CAGR) of 54 per cent over financial years 2011-2013.

In order to provide continuous value enhancement to shareholders, the group is aiming for a RM5 billion market capitalisation within five years, from its present RM2.2 billion.

By Bernama

Merge Housing to go private

PETALING JAYA: Property developer Merge Housing Bhd's chief and his two brothers are looking to take the company private, by offering to buy up all remaining shares not owned by them, or some 69.2 million shares, for RM45mil.



In a Bursa Malaysia announcement yesterday, Merge Housing's managing director Lee Kuang Chong and his two brothers, Lee Fatt Chong and Lee Heng Choong, proposed to undertake a conditional take-over offer to buy all the remaining shares of RM1 each in Merge Housing (net of treasury shares) not owned by them for 65 sen per share.

The brothers collectively hold 75.83 million shares in the company, or representing 52.37% of the issued and paid-up capital of Merge Housing (excluding 5.21 million treasury shares). Lee Kuang Chong holds a direct equity interest of 30.11%, Lee Fatt Chong has a 17.36% stake and Lee Heng Choong's holding is 4.9% in Merge Housing.

The offer price represented a premium of 5.5 sen or 9.24% above the closing price of Merge Housing shares on Tuesday of 59.5 sen, being the last trading day prior to the date of this notice.

The announcement said that the offer price was arrived at after taking into consideration a premium of 9.8 sen or 17.75% above the five-day volume weighted average market share price (VWAP) of Merge Housing shares up to and including June 28, of 55.2 sen and a premium of 10.4 sen or 19.05% above the one-month VWAP up to and including June 28 of 54.6 sen.

The consideration for the offer will be satisfied in cash and should the company declare or pay any dividend and/or other distributions on or after the date of the announcement but prior to the close of the offer, shareholders were entitled to retain the dividend and/or distributions.

However, the consideration for each offer share shall be reduced by the quantum of the net dividend and/or distribution per Merger Housing share.

No rationale was provided for the privatisation exercise.

Based on the company's annual report 2010, a net profit of RM1.13mil was posted against a revenue of RM92.6mil for the financial year ended May 31 2010. Meanwhile, it made a net loss of RM24.6mil against a revenue of RM83.6mil for the financial year ended May 31 2009.

According to the group's website, its major land bank is located in Subang 2, Mon't Kiara, Puchong/Old Klang Road as well as Bukit Jelutong. Although it initially catered to the mass low to medium cost market, the group has now shifted into landed properties and higher end properties.

By The Star

Keep politics off affordable housing schemes

It would appear that demand for super high-end homes is showing absolutely no sign of abating. YTL Land & Development issued a press release that its Grove at Lake Fields project in Sungai Besi, from a starting price of RM1.8mil, has been snapped up by eager buyers ahead of its launch.

Maybe its the name of the developer that led to a such a reception towards its project.

YTL has certainly created a reputation for itself in the property market with buyers appreciating the quality of the houses it builds.

But its that kind of mismatch that has created somewhat an imbalance in the supply of property especially in the major markets natiowide like Kuala Lumpur.

With economic activity chugging away and jobs still being created, more so when economic programmes by the Government start to see more investment and employment being created throughout the country, demand for housing in the hot markets will be on the rise.

Unfortunately, most of the homes being launched are beyond the reach of many Malaysians, especially those who are early in their careers, and the gap is set to widen as a larger percentage of Malaysians enter the age of employment year after year.

Given the penchant for developers to reap as much profit from their landbank, the vast majority of Malaysians will be priced out and just cannot afford to shell out that kind of money to buy a house, regardless of how big or how good the developer is, and at the same time keep up with the escalating cost of living.

It therefore comes to no one's surprise that the Government is now looking to step in and fulfil that demand gap by coming up with two affordable housing schemes ranging between RM100,000 and RM300,000 for Malaysians who do not yet own a home.

Both those schemes which will cater for households earning under RM3,000 a month and RM6,000 a month, which together would form the bulk of Malaysians today.

It was revealed that a portion of the redevelopment of the old Sungai Besi airport development which is called Bandar Malaysia would be carved out to build affordable homes for Malaysians.

Similar projects are being hatched in other areas where the Government owns land and eventually, such schemes would require the support of all parties including state governments as more projects are built throughout the country.

But the building of affordable home should not be subject to partisan politics. The last thing people would want is politicians trying to gain mileage at the expense of people's welfare.

It is also worth watching the impact of new public affordable housing on the price of comparably priced houses currently in the secondary market, which is there but not in the choice locations.

Deputy news editor Jagdev Singh Sidhu misses eating tasty food that is bad for your body.

By The Star (by Jagdev Singh Sidhu)