IOI Corporation Bhd and Dutaland Bhd have agreed to mutually rescind the sale and purchase agreement (SPA) for the proposed acquisition of 11,977.91ha of oil palm plantation land for RM830 million.
IOI said its unit Sri Mayvin Plantation Sdn Bhd and Dutaland's Pertama Land and Development Sdn Bhd had entered into a deed of rescission with immediate effect in a move to resolve all issues and disputes relating to the SPA.
"The parties are released from all obligations and liabilities in connection with the SPA and neither party shall have any further claim against the other in respect thereto," it said in a filing to Bursa Malaysia today.
IOI said following from the execution of the deed of rescission, OSK Trustees Bhd, the stakeholder jointly appointed by the parties, will proceed to refund the RM83 million deposit earlier paid by Sri Mayvin together with all interest accrued to Sri Mayvin.
In a separate statement, Dutaland said the rescission is not expected to have a material effect on the earnings, net assets and gearing of the company for the financial year ending June 30, 2012.
Dutaland said it would continue to manage the properties to generate positive returns.
By Bernama
Wednesday, November 9, 2011
Guocoland wants to buy PJ City Devt
GUOCOLAND (Malaysia) Bhd wants to buy PJ City Development Sdn Bhd from GuoLine Asset Sdn Bhd for RM29.8 million.
The acquisition will be financed wholly from borrowings, the company said yesterday.
Hong Leong Bank Bhd's Tan Sri Quek Leng Chan owns an indirect 65 per cent stake in GuocoLand.
PJ City owns two parcels of land in Petaling Jaya, one commercial and another industrial.
GuocoLand will convene an extraordinary general meeting to get shareholders approval for the acquisition.
By Business Times
The acquisition will be financed wholly from borrowings, the company said yesterday.
Hong Leong Bank Bhd's Tan Sri Quek Leng Chan owns an indirect 65 per cent stake in GuocoLand.
PJ City owns two parcels of land in Petaling Jaya, one commercial and another industrial.
GuocoLand will convene an extraordinary general meeting to get shareholders approval for the acquisition.
By Business Times
Guocoland to buy firms
PETALING JAYA: Guocoland (M) Bhd has proposed to acquire PJ City Development Sdn Bhd for RM29.79mil cash.
It told Bursa Malaysia yesterday that the exercise involved the acquisition of five million shares in PJ City from GuoLine Asset Sdn Bhd.
Guocoland also announced that it had proposed to acquire PJ Corp Park Sdn Bhd from MPI Holdings Sdn Bhd for RM258,000 cash. PJ Corp owns two units of low-cost houses in Masai, Johor.
By The Star
It told Bursa Malaysia yesterday that the exercise involved the acquisition of five million shares in PJ City from GuoLine Asset Sdn Bhd.
Guocoland also announced that it had proposed to acquire PJ Corp Park Sdn Bhd from MPI Holdings Sdn Bhd for RM258,000 cash. PJ Corp owns two units of low-cost houses in Masai, Johor.
By The Star
KL-Singapore high-speed rail project on track
Kuala Lumpur: The high-speed rail system linking Kuala Lumpur and Singapore could take shape by next year, with three groups leading the early race to win the multi-billion ringgit job, people familiar with the plan said.
The Land Public Transport Commission (SPAD) is expected to start a feasibility study on the project early next year.
The commission had already completed a pre-feasibility study, SPAD chief development officer Azmi Abdul Aziz told Business Times.
SPAD will undertake a feasibility study next, which should take six to 12 months to complete, Azmi added.
If feasible, the project is estimated to cost as much as RM12 billion, with the interested parties offering either European or Chinese technologies.
It is believed that up-and-coming rail tycoon Tan Sri Ravindran Menon has teamed up with UEM Group to vie for the project.
Ravindran controls Skypark Terminal, which recently received an offer from the government to undertake a RM1.5 billion rail project.
The project is to connect the Keretapi Tanah Melayu Bhd (KTMB) station in Subang Jaya, Selangor, to the Skypark Terminal at the Sultan Abdul Aziz Shah Airport.
Business Times understands that the Ravindran-UEM venture made a presentation to the government early this year, specifically on the more than 300km high speed rail line.
Sources said they planned to lay railway lines parallel to the North-South Expressway from Kuala Lumpur, Seremban and Malacca to Johor Baru, before connecting to Singapore.
Others said to be in the running for the job are China Infraglobe Consortium-Global Rail Sdn Bhd and YTL Corp Bhd.
China Infraglobe-Global Rail consortium last made a submission for the job in 2009.
To date, it has yet to make a revised proposal to the government, a company official said.
YTL group managing director Tan Sri Francis Yeoh Sock Ping, who is in New York, declined to comment when asked if the company had made a fresh submission.
YTL, operator of the KLIA Express, first mooted the idea to build a high-speed rail in the late 1990s and again in 2006.
The project was put on hold in April 2008 due to high cost, which was estimated at RM8 billion.
In the middle of 2009, YTL expressed hope that the government would relook at the proposal.
It said it would build the rail line on the coastline of Peninsular Malaysia, rather than that mooted in an earlier proposal of building on the existing track.
Last year, the government said it would revive the project.
It was highligted as a high impact project in the government's Economic Transformation Programme roadmap in a bid to increase economic activities.
Yesterday, the government reiterated that it may go ahead with the project.
Transport Minister Datuk Seri Kong Cho Ha said it would wait for feedback from its Singaporean counterparts as the track would go into its land.
Germany's Siemens had previously offered its solutions to the project.
It proposed the use of its Velaro trains, which have a top speed of 350kph.
By Business Times
Uda seeks LRT joint venture with SPNB
UDA HOLDINGS Bhd had two weeks ago submitted a proposal to Syarikat Prasarana Negara Bhd (SPNB) to jointly develop the Dang Wangi LRT station.
The land, measuring 11,008 sq m in Jalan Ampang, is strategically located and has the potential for residential, commercial or mixed development.
In a statement, UDA Holdings chairman Datuk Nur Jazlan Mohamed said the group has over 40 years of experience in urban redevelopment and the technical capacity for the proposed joint venture with Syarikat Prasarana to develop the land.
By Business Times
The land, measuring 11,008 sq m in Jalan Ampang, is strategically located and has the potential for residential, commercial or mixed development.
In a statement, UDA Holdings chairman Datuk Nur Jazlan Mohamed said the group has over 40 years of experience in urban redevelopment and the technical capacity for the proposed joint venture with Syarikat Prasarana to develop the land.
By Business Times
iProperty ranked 4th by Aussie magazine
iProperty Group, an online property group, has clinched fourth place in the Top 100 Fastest Growing Business by Business Review Weekly (BRW), an Australian business magazine.
iProperty generated over AU$7.3 million in the 2010 calendar year and clocked an average growth of 223 per cent over the previous three years, making it the only ASX listed company in the top four.
The company also generated over 3.5 million unique visitors and over 45 million page views across the iProperty Group of leading property portals in Indonesia, Hong Kong, Malaysia and Singapore.
Its chief executive officer Shaun Di Gregorio said: "This recognition is a tremendous accomplishment to the Group and being part of the list is a testament to our hard work and dedication.
"This continued success is a reflection to our commitment to providing highly innovative products to our customers and assist them in searching for their dream home," Di Gregorio said in a statement today.
By Bernama
iProperty generated over AU$7.3 million in the 2010 calendar year and clocked an average growth of 223 per cent over the previous three years, making it the only ASX listed company in the top four.
The company also generated over 3.5 million unique visitors and over 45 million page views across the iProperty Group of leading property portals in Indonesia, Hong Kong, Malaysia and Singapore.
Its chief executive officer Shaun Di Gregorio said: "This recognition is a tremendous accomplishment to the Group and being part of the list is a testament to our hard work and dedication.
"This continued success is a reflection to our commitment to providing highly innovative products to our customers and assist them in searching for their dream home," Di Gregorio said in a statement today.
By Bernama
Prices of DBSS flats in Singapore soar
SINGAPORE: Design, Build and Sell Scheme (DBSS) flats have been attracting such strong interest that they now cost nearly as much as executive condominium (EC) units.
Their overall median price was now only S$100 to S$150 per sq ft (psf) lower than that of the condo units, said Lee Sze Teck, senior manager of research and consultancy at Dennis Wee Realty.
The scheme's popularity comes despite the fact that it is under review, following an outcry when Centrale 8 in Tampines made the news for its high asking prices in July.
Lee said the high demand was due mainly to the fact that the projects were located in mature estates, near MRT stations.
Prices for Trivelis, the latest DBSS launch in Clementi, were about S$580 to S$728 psf. The cost of new EC flats ranges from S$501 to S$820 psf, according to data that Lee gathered from sources such as the Housing and Development Board and the Urban Redevelopment Authority.
“The pricing of DBSS flats has been pushing the boundaries so much that they are now not far off from the prices of new EC projects under development,” he said.
DBSS flats, which are built on government land sold to private developers, were introduced in 2005 to provide more choices in the housing market. They have better design and finishes than standard flats, but unlike ECs, they cannot be privatised after 10 years or contain facilities such as pools.
Since the scheme was put under review, three projects that were already in the pipeline have been launched and they attracted strong interest. Some had as many as three bidders for every unit.
Lee said DBSS properties were attractive also because, unlike resale flats, they required no cash-over-valuation, the premium paid over and above the official value.
By The Straits Times Singapore
Their overall median price was now only S$100 to S$150 per sq ft (psf) lower than that of the condo units, said Lee Sze Teck, senior manager of research and consultancy at Dennis Wee Realty.
The scheme's popularity comes despite the fact that it is under review, following an outcry when Centrale 8 in Tampines made the news for its high asking prices in July.
Lee said the high demand was due mainly to the fact that the projects were located in mature estates, near MRT stations.
Prices for Trivelis, the latest DBSS launch in Clementi, were about S$580 to S$728 psf. The cost of new EC flats ranges from S$501 to S$820 psf, according to data that Lee gathered from sources such as the Housing and Development Board and the Urban Redevelopment Authority.
“The pricing of DBSS flats has been pushing the boundaries so much that they are now not far off from the prices of new EC projects under development,” he said.
DBSS flats, which are built on government land sold to private developers, were introduced in 2005 to provide more choices in the housing market. They have better design and finishes than standard flats, but unlike ECs, they cannot be privatised after 10 years or contain facilities such as pools.
Since the scheme was put under review, three projects that were already in the pipeline have been launched and they attracted strong interest. Some had as many as three bidders for every unit.
Lee said DBSS properties were attractive also because, unlike resale flats, they required no cash-over-valuation, the premium paid over and above the official value.
By The Straits Times Singapore
UK home costs jump in October
LONDON: British house prices jumped in October, mortgage lender Halifax said, in a rare sign the housing market may be weathering the economic turbulences better than many fear.
Home prices were 1.2% higher than in September, Halifax said. Prices were 1.8% lower in the three months to October compared with the previous year's period.
Analysts polled by Reuters had expected a monthly increase of only 0.1% and an annual decline of 2.3%.
“The housing market has proved highly resilient in recent months despite the weak economic recovery and the deterioration in the outlook for both the UK and global economies,” said Martin Ellis, Halifax housing economist.
“Despite these developments, house sales and the supply of properties for sale have remained very stable since late 2010,” he said. “The prospect of exceptionally low official interest rates over the foreseeable future is likely to continue to support the market in the face of a very difficult economic climate.”
Other surveys have painted a bleaker picture and many economists see house prices in Britain falling in the months ahead as the country is teetering on the brink of a recession.
Consumers cut back spending as their budgets are squeezed by soaring costs of living, which outweigh small wage increases.
By Reuters
Home prices were 1.2% higher than in September, Halifax said. Prices were 1.8% lower in the three months to October compared with the previous year's period.
Analysts polled by Reuters had expected a monthly increase of only 0.1% and an annual decline of 2.3%.
“The housing market has proved highly resilient in recent months despite the weak economic recovery and the deterioration in the outlook for both the UK and global economies,” said Martin Ellis, Halifax housing economist.
“Despite these developments, house sales and the supply of properties for sale have remained very stable since late 2010,” he said. “The prospect of exceptionally low official interest rates over the foreseeable future is likely to continue to support the market in the face of a very difficult economic climate.”
Other surveys have painted a bleaker picture and many economists see house prices in Britain falling in the months ahead as the country is teetering on the brink of a recession.
Consumers cut back spending as their budgets are squeezed by soaring costs of living, which outweigh small wage increases.
By Reuters
Tuesday, November 8, 2011
Private property market unabated
An artist’s impression of Hijauan On Cavenagh, a project in district 9, Singapore
SINGAPORE: Selangor Dredging Bhd (SDB) is upbeat about the republic's private property market despite the economic uncertainties in the eurozone and the United States.
Its communications and corporate affairs manager, Yeoh Guan Jin said demand for private residential properties here was still positive with demand coming from Singaporean and foreign buyers.
“The property market registered 16% and 20% take-up rate for private residential properties in the first and the second quarter of the year respectively,” he said.
Yeoh told StarBiz at a sales gallery showcasing SDB's latest freehold residential project in Singapore Hijauan On Cavenagh.
He said as Singapore continued to welcome and attract affluent people and expatriates from all over the world, demand for private residential properties in the city state would remain good.
Yeoh said with no restriction to foreigners buying private properties in the republic, investers could expect to fetch good rental.
“With more Malaysians looking to invest in properties overseas, Singapore is the best place for them due to its close proximity with Malaysia,” he said.
Yeoh added that the company was optimistic the project would receive positive response, similar to its Okio Residences project launched in the second quarter of 2011.
Okio Residences a mixed freehold residential and commercial project to be built on a 0.2ha site at Balestier Road in district 12 had recorded about 70% take-up rate from Singaporeans as well as foreigners.
The 18-storey apartment block consists of 104 units of one and two-bedroom units priced between S$660,000 and S$1mil and 10 units of retail shops and offices priced between S$1.5mil and S$4.6mil.
Work on Okio Residences with gross development value (GDV) of S$102mil started in the third quarter of the year with expected completion in the last quarter of 2015.
Hijauan On Cavenagh, located on Cavenagh Road in Singapore's prestigious district 9, will be built on a 0.18ha site that was previously Cavenagh Mansion with expected completion in the third quarter of 2015.
“We are banking on the location of Hijauan On Cavenagh as the strong selling point to attract potential buyers,” said Yeoh.
He added that it was just minutes away from the Somerset, Dhoby Ghaut and Orchard MRT stations and close to the Orchard Road shopping belt, education institutions and Central Expressway.
Yeoh said the name reflected the greenery in a coveted green lung within walking distance from Orchard Road and a tree-lined passageway beside the Istana and adjacent to 25,000 sq ft of lush state land.
The Istana is the official residence and working office for both the president and prime minister.
The project will comprise a six-storey residential block of 41 high-end apartment units featuring five garden units with built-up area from 1,001 sq ft to 1,141 sq ft.
The 28 typical units has floor area from 527 sq ft to 1,249 sq ft and eight penthouses from 463sq ft to 1,884 sq ft with each unit priced from S$1.3mil to S$3.5mil.
“Being in a prestigious location and close to the Istana, property development projects along the area must adhere to certain rulings such as they should not be higher than the Istana,” said Yeoh.
SDB's other projects in Singapore were the 22 units of low-rise condominiums called Jia at Wilkie Road with GDV of S$55mil completed in December 2010.
It was also developing the high-rise condominium project Gilstead Two at Gilstead Road consisting of 110 units with a GDV of S$200mil and the project is expected to be ready in the fourth quarter of 2014.
By The Star
SP Setia adopting the Aussie standard of property development
MELBOURNE: Through its property ventures in Australia, SP Setia Bhd aims to adopt the best practices from that market for its other developments, said president and CEO Tan Sri Liew Kee Sin.
(From left): Setia Melbourne CEO Choong Kai Wai, Liew, Fulton Lane architect Karl Fender, Chor, Lee and Malaysian consul-general Dr Mohammad Rameez at the launch.
“We need to blend in with the local environment that is important. When you go to a new place to invest, you have to learn first before you think about making money. You need to learn how things work,” Liew said at the launch of the developer's Fulton Lane property in the central business district here.
“Things are transparent here. We think that by learning the systems here, it will make us a better developer in Malaysia. For instance, respecting the environment is something the Australians do well. In terms of design, your building is not allowed to cast a shadow on another building.”
The 487-apartment unit Fulton Lane, which comprises two residential towers and a retail podium, has sold about 80% of the first tower block and 30% of the second block.
Set to be completed in 2014, the land was bought for A$30mil in March last year and has a gross development value of A$470mil.
“I think Melbourne is a good market, but we will not be big here. We will start small, we want to understand the market and make sure we build a brand like how we did in Malaysia, which is a brand that people can trust.
“We'll do it slowly and make sure we execute it to the best quality. In Malaysia for example, it took us 20 years to build SP Setia. We'll be slow and steady on this.”
Although Liew maintained that the Malaysian property market was still SP Setia's main focus, the company was hoping for revenue from its overseas projects to hit 30% in five years.
He was not concerned by talk of a softening property market in Melbourne, saying: “A couple of weeks ago the Australian government reduced interest rates by a quarter per cent. If they reduce it by another quarter per cent, that would be perfect as the currency will drop and people will start to invest again.”
In his speech earlier, Liew said Melbourne had 30,000 Malaysians with permanent residence status, making it an attractive proposition for SP Setia.
The first block in Fulton Lane has received interest from investors as well as owner-occupiers, primarily Malaysians.
The second block, which is the taller of the two, has attracted the locals along with Indonesians and Singaporeans. SP Setia will also begin marketing the project in China in a few weeks, after similar excursions in Hong Kong, Jakarta and Brunei.
SP Setia Melbourne sales and marketing manager Jeffrey Ong said there had been some interest from institutional investors as well, but this was at the discussion stage.
On the proposed mandatory general offer by Permodalan Nasional Bhd, Liew said the state investment arm had come to an agreement with him and this would be reflected in the offer document that was to come from PNB.
“This is subject to the Securities Commission's approval, and if it goes through, it will be in the offer document. That's why it was delayed. We want to play fair to all the shareholders and keep them fully informed,” he said.
On SP Setia's plans for its 2.23-acre South Yarra land, also in Melbourne, Ong said it would have 329 apartment units and cater to local buyers. The A$250mil GDV project is still in the planning stage, and Ong said it was slated to be launched next year and would take some three years to develop.
The launch was attended by Housing and Local Government Minister Datuk Seri Chor Chee Heung and SP Setia Foundation chairman Tan Sri Lee Lam Thye.
By The Star
(From left): Setia Melbourne CEO Choong Kai Wai, Liew, Fulton Lane architect Karl Fender, Chor, Lee and Malaysian consul-general Dr Mohammad Rameez at the launch.
“We need to blend in with the local environment that is important. When you go to a new place to invest, you have to learn first before you think about making money. You need to learn how things work,” Liew said at the launch of the developer's Fulton Lane property in the central business district here.
“Things are transparent here. We think that by learning the systems here, it will make us a better developer in Malaysia. For instance, respecting the environment is something the Australians do well. In terms of design, your building is not allowed to cast a shadow on another building.”
The 487-apartment unit Fulton Lane, which comprises two residential towers and a retail podium, has sold about 80% of the first tower block and 30% of the second block.
Set to be completed in 2014, the land was bought for A$30mil in March last year and has a gross development value of A$470mil.
“I think Melbourne is a good market, but we will not be big here. We will start small, we want to understand the market and make sure we build a brand like how we did in Malaysia, which is a brand that people can trust.
“We'll do it slowly and make sure we execute it to the best quality. In Malaysia for example, it took us 20 years to build SP Setia. We'll be slow and steady on this.”
Although Liew maintained that the Malaysian property market was still SP Setia's main focus, the company was hoping for revenue from its overseas projects to hit 30% in five years.
He was not concerned by talk of a softening property market in Melbourne, saying: “A couple of weeks ago the Australian government reduced interest rates by a quarter per cent. If they reduce it by another quarter per cent, that would be perfect as the currency will drop and people will start to invest again.”
In his speech earlier, Liew said Melbourne had 30,000 Malaysians with permanent residence status, making it an attractive proposition for SP Setia.
The first block in Fulton Lane has received interest from investors as well as owner-occupiers, primarily Malaysians.
The second block, which is the taller of the two, has attracted the locals along with Indonesians and Singaporeans. SP Setia will also begin marketing the project in China in a few weeks, after similar excursions in Hong Kong, Jakarta and Brunei.
SP Setia Melbourne sales and marketing manager Jeffrey Ong said there had been some interest from institutional investors as well, but this was at the discussion stage.
On the proposed mandatory general offer by Permodalan Nasional Bhd, Liew said the state investment arm had come to an agreement with him and this would be reflected in the offer document that was to come from PNB.
“This is subject to the Securities Commission's approval, and if it goes through, it will be in the offer document. That's why it was delayed. We want to play fair to all the shareholders and keep them fully informed,” he said.
On SP Setia's plans for its 2.23-acre South Yarra land, also in Melbourne, Ong said it would have 329 apartment units and cater to local buyers. The A$250mil GDV project is still in the planning stage, and Ong said it was slated to be launched next year and would take some three years to develop.
The launch was attended by Housing and Local Government Minister Datuk Seri Chor Chee Heung and SP Setia Foundation chairman Tan Sri Lee Lam Thye.
By The Star
Melati Ehsan back in the news after winning RM297mil housing contract
PETALING JAYA: Low profile turnkey contractor Melati Ehsan Holdings Bhd is in the limelight again, this time for bagging a RM297mil contract to design and build residential flats for the Housing and Local Government Ministry's People's Housing Programme (PPR).
Melati Ehsan was also in the news recently when it was reported that the company's massive RM1.62bil property development project with the Selangor State Development Authority (PKNS) in Kelana Jaya, Petaling Jaya (that will see it redeveloping the PKNS Sports Complex) would likely go ahead despite opposing views from the residents in the area.
Yap holds an indirect 49.74% stake in Melati Ehsan.
Little details have been provided about the RM297mil contract from PPR. The company said the contract had been awarded to its wholly-owned subsidiary, Pembinaan Kery Sdn Bhd, and that it had just received the letter of award. It said the contract would be split into two portions, with one part valued at RM82.1mil for the provision of 500 units of flats, while the remainder 1,600 units of flats would be built for RM215.9mil. The company also revealed that the properties would be built in Kuala Lumpur but with no further details of the locations.
Going by the numbers revealed by Melati Ehsan in the announcement, it seems that it will be building the flats for between RM135,000 and RM164,000. The flats are expected to be completed earliest by 2014, assuming that the construction stays on its stipulated time line of completion of 30 months and 36 months respectively. Melati Ehsan has yet to reply to questions from Starbiz for details on this new award.
Melati Ehsan's joint venture with PKNS is to redevelop the PKNS Sports Complex, which is 30 years old, and includes a field, six tennis courts and a clubhouse. The planned development by Melati Eshan and PKNS is a RM1.62bil sports-themed mixed development, with five 35-storey apartment blocks, two 15-storey business complexes, a performing arts centre and an integrated sporting hub.
The company is helmed by managing director Tan Sri Yap Suan Chee, who has an indirect stake of 49.74% in the company. Melati Ehsan, which was listed in 2007, had completed mainly infrastructure construction projects like the Trans Eastern Kedah Interland Highway for RM287mil, and also two Carrefour hypermarkets in Kota Damansara and Bandar Tun Hussein Onn.
Its other substantial shareholders include the country's pilgrims fund board, Lembaga Tabung Haji, which has a direct 7.28% stake in the company, and according to its 2010 annual report, Melati Ehsan's 30 largest shareholders collectively own 89.54% of the company.
It is also involved in several ongoing residential housing projects in the Klang Valley, namely in Bukit Tengku, Bukit Jalil and also a mixed development in Pandamaran, Klang, which will comprise 501 units of residential houses and 320 shoplots, along with commercial areas covering 8.97 acres and industrial areas covering 6.92 acres. It has also completed housing projects in Kota Damansara, namely Bayu Perdana 2 and Bayu Damansara. In Johor, it has completed several phases of its development named Taman Ehsan Jaya and is still busy with the mixed development which comprises over 5,000 units of residential and commercial units.
Listed at an initial public offering (IPO) price of RM1.28, the counter has not touched its IPO price since June 2008. Although still profitable, its earnings have been seen a slight decline. For its year ended Aug 31, 2011 (FY11), the company recorded a net profit of RM6.1mil on the back of RM86.55mil in revenue, while for FY10, FY09 and FY08, it had recorded net profit of RM5.47mil, RM12.69mil and RM18.9mil respectively.
The company had cash balance of RM34.61mil as at the August 31, 2011 and its share price had been trading at the 80 sen range, below its net tangible asset of RM1.21.
With a current market capitalisation of RM96mil, it is interesting to note that the recent contract it has secured is more than two times its market value.
By The Star
Melati Ehsan was also in the news recently when it was reported that the company's massive RM1.62bil property development project with the Selangor State Development Authority (PKNS) in Kelana Jaya, Petaling Jaya (that will see it redeveloping the PKNS Sports Complex) would likely go ahead despite opposing views from the residents in the area.
Yap holds an indirect 49.74% stake in Melati Ehsan.
Little details have been provided about the RM297mil contract from PPR. The company said the contract had been awarded to its wholly-owned subsidiary, Pembinaan Kery Sdn Bhd, and that it had just received the letter of award. It said the contract would be split into two portions, with one part valued at RM82.1mil for the provision of 500 units of flats, while the remainder 1,600 units of flats would be built for RM215.9mil. The company also revealed that the properties would be built in Kuala Lumpur but with no further details of the locations.
Going by the numbers revealed by Melati Ehsan in the announcement, it seems that it will be building the flats for between RM135,000 and RM164,000. The flats are expected to be completed earliest by 2014, assuming that the construction stays on its stipulated time line of completion of 30 months and 36 months respectively. Melati Ehsan has yet to reply to questions from Starbiz for details on this new award.
Melati Ehsan's joint venture with PKNS is to redevelop the PKNS Sports Complex, which is 30 years old, and includes a field, six tennis courts and a clubhouse. The planned development by Melati Eshan and PKNS is a RM1.62bil sports-themed mixed development, with five 35-storey apartment blocks, two 15-storey business complexes, a performing arts centre and an integrated sporting hub.
The company is helmed by managing director Tan Sri Yap Suan Chee, who has an indirect stake of 49.74% in the company. Melati Ehsan, which was listed in 2007, had completed mainly infrastructure construction projects like the Trans Eastern Kedah Interland Highway for RM287mil, and also two Carrefour hypermarkets in Kota Damansara and Bandar Tun Hussein Onn.
Its other substantial shareholders include the country's pilgrims fund board, Lembaga Tabung Haji, which has a direct 7.28% stake in the company, and according to its 2010 annual report, Melati Ehsan's 30 largest shareholders collectively own 89.54% of the company.
It is also involved in several ongoing residential housing projects in the Klang Valley, namely in Bukit Tengku, Bukit Jalil and also a mixed development in Pandamaran, Klang, which will comprise 501 units of residential houses and 320 shoplots, along with commercial areas covering 8.97 acres and industrial areas covering 6.92 acres. It has also completed housing projects in Kota Damansara, namely Bayu Perdana 2 and Bayu Damansara. In Johor, it has completed several phases of its development named Taman Ehsan Jaya and is still busy with the mixed development which comprises over 5,000 units of residential and commercial units.
Listed at an initial public offering (IPO) price of RM1.28, the counter has not touched its IPO price since June 2008. Although still profitable, its earnings have been seen a slight decline. For its year ended Aug 31, 2011 (FY11), the company recorded a net profit of RM6.1mil on the back of RM86.55mil in revenue, while for FY10, FY09 and FY08, it had recorded net profit of RM5.47mil, RM12.69mil and RM18.9mil respectively.
The company had cash balance of RM34.61mil as at the August 31, 2011 and its share price had been trading at the 80 sen range, below its net tangible asset of RM1.21.
With a current market capitalisation of RM96mil, it is interesting to note that the recent contract it has secured is more than two times its market value.
By The Star
Rahsia Estates Resort to expand in Langkawi
PETALING JAYA: Rahsia Estates Resort, Residences and Spa, a RM300 million development in Langkawi, Kedah, is eyeing additional land for future development on the island.
The developer now has 6.89ha of land located near Kampung Temoyong which is some 15 minutes away from the airport.
Work on its first phase will start next month. Chief executive officer of Rahsia Estates Sdn Bhd, Hanizah Tun Abdul Hamid said that it is already negotiating for an additional 1.62ha of land and is looking for more land in the vicinity of Rahsia Estates development.
"We could possibly buy more land and we are open to forming joint-venture for our future projects," Hanizah said, adding that a likely partner would be one which has similar aspiration and passion for such a project.
Rahsia Estates, which faces the Lake of the Pregnant Maiden, is promoting itself as an eco-tourism resort as it will be maintaining the mangrove in the area as well as some 0.81ha of forest within the resort.
The resort's hotel will conform to the Green Building Index. It plans to invest in enhancing the fishing jetty for the local fishing community's benefit.
The mixed hotel-residential development, expected to take three years to complete, comprises several precincts that will include both luxury villas and suites.
Precinct 1, Phase 1 - Tree Top Villas - will have six main villas with a total of 50 units. Work will start early 2012 and is slated for completion in the first quarter of 2013.
Rahsia Estates is looking at selling these units and leasing back at least 80 per cent of the units sold.
Meanwhile, the hotel component with about 116 rooms to 119 rooms will not be sold.
"Due to high material costs, we are expecting return on investment to take 12 years ... but we are working to push it to eight years," she told Business Times in an interview.
Rahsia Estates' plan is to sign a management contract with a resort manager that will run both the hotel and the villas.
The hotel, Hanizah said, is likely to be a four-star as several recent new hotel announcements on the island have been in the five-star category.
The developer, which is already in talks with several hotel operators, is keen to sign an operator that can deliver hospitality as experienced in Bali and Thailand. "The Thais and the Balinese have perfected the art of hospitality," she said.
Meanwhile, Phase 2 of Precinct 1 will see an addition of 50 villas, which will be developed at a later stage.
Precinct 3 will have 32 Cabana Villas while Precinct 4 comprises 31 units of Tree Top Chalets.
Rahsia Estates is a member of HD Concepts Consolidated Sdn Bhd group of companies. Riverbank Suites, Merdeka Plaza and the New Kuching Courts in Sarawak are among the developer's previous projects.
By Business Times
The developer now has 6.89ha of land located near Kampung Temoyong which is some 15 minutes away from the airport.
Work on its first phase will start next month. Chief executive officer of Rahsia Estates Sdn Bhd, Hanizah Tun Abdul Hamid said that it is already negotiating for an additional 1.62ha of land and is looking for more land in the vicinity of Rahsia Estates development.
"We could possibly buy more land and we are open to forming joint-venture for our future projects," Hanizah said, adding that a likely partner would be one which has similar aspiration and passion for such a project.
Rahsia Estates, which faces the Lake of the Pregnant Maiden, is promoting itself as an eco-tourism resort as it will be maintaining the mangrove in the area as well as some 0.81ha of forest within the resort.
The resort's hotel will conform to the Green Building Index. It plans to invest in enhancing the fishing jetty for the local fishing community's benefit.
The mixed hotel-residential development, expected to take three years to complete, comprises several precincts that will include both luxury villas and suites.
Precinct 1, Phase 1 - Tree Top Villas - will have six main villas with a total of 50 units. Work will start early 2012 and is slated for completion in the first quarter of 2013.
Rahsia Estates is looking at selling these units and leasing back at least 80 per cent of the units sold.
Meanwhile, the hotel component with about 116 rooms to 119 rooms will not be sold.
"Due to high material costs, we are expecting return on investment to take 12 years ... but we are working to push it to eight years," she told Business Times in an interview.
Rahsia Estates' plan is to sign a management contract with a resort manager that will run both the hotel and the villas.
The hotel, Hanizah said, is likely to be a four-star as several recent new hotel announcements on the island have been in the five-star category.
The developer, which is already in talks with several hotel operators, is keen to sign an operator that can deliver hospitality as experienced in Bali and Thailand. "The Thais and the Balinese have perfected the art of hospitality," she said.
Meanwhile, Phase 2 of Precinct 1 will see an addition of 50 villas, which will be developed at a later stage.
Precinct 3 will have 32 Cabana Villas while Precinct 4 comprises 31 units of Tree Top Chalets.
Rahsia Estates is a member of HD Concepts Consolidated Sdn Bhd group of companies. Riverbank Suites, Merdeka Plaza and the New Kuching Courts in Sarawak are among the developer's previous projects.
By Business Times
GuocoLand proposes to acquire PJ City
GuocoLand (Malaysia) Bhd has proposed to acquire the entire equity interest in PJ City Development Sdn Bhd from GuoLine Asset Sdn Bhd (GASB) for RM29.785 million cash.
PJ City is the beneficial owner of two parcels of land situated in Section 32 in Petaling, Selangor. The lands are located within Section 51A, Petaling Jaya next to the Federal Highway at approximately two kilometres south-west of the city centre of Petaling Jaya and 12 kilometres south-west of the city centre of Kuala Lumpur.
In a filing to Bursa Malaysia today, GuocoLand said it has also proposed to buy PJ Corporate Park Sdn Bhd (PJ Corp) from MPI Holdings Sdn Bhd for RM258,000 cash. PJ Corp is the registered proprietor of the lands.
PJ Corp owns two units of low-cost houses located in Masai, Johor. These houses are residual units from a housing development project undertaken by PJ Corp in the 1980s. The total audited net book value of these two low-cost houses as at June 30, 2011 was RM44,000.
GuocoLand said the proposed acquisitions would enable the group to increase its land banks in strategic locations for future developments and to enhance its earnings.
"As PJ Corp is the registered proprietor of the lands, the proposed acquisition of PJ Corp will enable the group to have better control over the administrative matters in relation to the lands," the company said.
GuocoLand said that the proposed acquisitions are expected to contribute positively to the earnings of the group in future years.
By Bernama
PJ City is the beneficial owner of two parcels of land situated in Section 32 in Petaling, Selangor. The lands are located within Section 51A, Petaling Jaya next to the Federal Highway at approximately two kilometres south-west of the city centre of Petaling Jaya and 12 kilometres south-west of the city centre of Kuala Lumpur.
In a filing to Bursa Malaysia today, GuocoLand said it has also proposed to buy PJ Corporate Park Sdn Bhd (PJ Corp) from MPI Holdings Sdn Bhd for RM258,000 cash. PJ Corp is the registered proprietor of the lands.
PJ Corp owns two units of low-cost houses located in Masai, Johor. These houses are residual units from a housing development project undertaken by PJ Corp in the 1980s. The total audited net book value of these two low-cost houses as at June 30, 2011 was RM44,000.
GuocoLand said the proposed acquisitions would enable the group to increase its land banks in strategic locations for future developments and to enhance its earnings.
"As PJ Corp is the registered proprietor of the lands, the proposed acquisition of PJ Corp will enable the group to have better control over the administrative matters in relation to the lands," the company said.
GuocoLand said that the proposed acquisitions are expected to contribute positively to the earnings of the group in future years.
By Bernama
Monday, November 7, 2011
Demand for luxury residential properties expected to turn cautious
PETALING JAYA: Demand for luxury residential properties is expected to turn cautious, given greater economic uncertainties and a tightening of credit by banks, DTZ Research said in its latest Property Times market report.
In the report for Kuala Lumpur for the third quarter, the research house said there would be an increasing downside risk on prices at the higher end of the market if the conditions got worse next year.
“The residential sector experienced significant completions in the quarter and this will put pressure on rentals, especially in the larger prime condominium units where demand has not kept pace.
“Generally, while price remains stable, new pressure to sell is expected as some owners taking delivery of completed units may wish to exit their investments. There remained selective demand for new launches,” it added.
The quarter saw the completion of a significant number of projects with an additional 2,278 condominium units in Kuala Lumpur, including two city-centre projects: Brunsfield Embassyview and The Pearl, eight projects in Mon’t Kiara, and one in Bangsar.
A further 52 condominium units are expected to be completed by the end of the year, all of which are in the city centre.
In 2012, about 5,384 units are expected to enter the market with about 92% or 4,952 units located in the city centre.
A boutique luxury condominium project in Persiaran Raja Chulan, St John Woods Residence, has reportedly received strong response, with almost half of the 48 units booked within two days. The selling price of the units are between RM3.3mil and RM4.4mil each (or RM900 per sq ft).
According to Property Times, the average capital value of high-end condominiums in Kuala Lumpur is generally stable at RM626 per sq ft, with properties in the Kuala Lumpur city centre averaging RM902 per sq ft.
“The market may see short-term selling pressure as owners of newly delivered units may exit their investment,” it pointed out.
The average rental value of high-end condominiums in Kuala Lumpur is stable at RM3.50 per sq ft per month but new completions will keep the rate competitive, especially for larger units where demand has not kept pace with supply.
It noted that to maintain or increase pricing level, developers had resorted to smaller units marketed under the guise of small-office home-office in mixed developments to appeal to younger buyers seeking more lifestyle options and to investors.
The outlook for the office sector is likely to be more sombre in the light of substantial pipeline supply in 2012.
Three office buildings are expected to be ready by the fourth quarter this year, which will add 1.1 million sq ft to the year’s total supply of about 2.5 million sq ft. They are D’tiara Amanaraya Corp Tower, Crest Tower and Lot E @ KL Sentral, of which the first and third properties will be substantially owner-occupied.
The report pointed out that external headwinds were expected to create uncertainties and the overall net absorption rate could further slow in the fourth quarter, adding that the situation would not provide comfort to a market that was expecting 2012 to be a potential tipping point with some 7.4 million sq ft projected for completion in the office market.
During the third quarter this year, leasing activities were driven mainly by the oil and gas, information technology (IT) and financial sectors.
With no new completions adding to competitive pressure, office rents remained stable with prime gross rental rates at RM6.22 per sq ft a month.
Among the major leases and relocations were that of RHB Insurance at The Icon for 100,000 sq ft and Touch n Go taking up 67,000 sq ft at The Horizon, Block 6, Bangsar South.
The third quarter saw no change in the capital value of office buildings, with good quality suburban offices sold at RM600 to RM700 per sq ft. The average capital value of prime office in Kuala Lumpur stood at RM807 per sq ft.
The investment property market saw an increase in both value and activities, with total value topping RM1.3bil in the third quarter, an increase of 39% from the second quarter.
There were 10 deals in the quarter – five offices, two mixed developments, and a retail, industrial and residential property each – compared with eight in the second quarter.
The biggest deal recorded in the third quarter was the sale via public auction of The Putra Place, which was sold to Sunway REIT for RM513.9mil.
The other major transaction was a prime office building in Cyberjaya – Bangunan Lestari Kumpulan Emkay – that was on a long-term lease to Shell, with an estimated initial yield of 5.7%.
Most of the properties sold are located in and around Kuala Lumpur, with one transaction recorded in Penang, a Tesco-leased hypermarket in Tanjung Sri Pinang, and in Johor Baru where a major prime stratified office, Menara Landmark, was sold via a public auction to developer Daiman Bhd.
The investment market was more active with strong deal flows from investors and also supported by end-users buying for own occupation. But going forward, the market is expected to be dominated by local investors as foreign investors have become more cautious.
In terms of pricing, Menara Landmark was sold at RM164 per sq ft, which the report noted was significantly below the RM600 to RM700 per sq ft fetched by good quality suburban offices in Kuala Lumpur.
Three of the transactions during the quarter involved mid-sized offices purchased for owner-occupation. The buyers are from the IT, oil and gas, and infrastructure sectors which are key sectors under the Economic Transformation Programme.
As for the retail sector, Property Times said rental growth was likely to be moderate going forward, especially with new malls still sprouting up in the suburbs in an increasingly tougher operating environment.
About 860,000 sq ft of new space was added in the quarter in Kuala Lumpur with the completion of three major retail centres – Suria KLCC (extension), Solaris 2 and 1 Shamelin Shopping Mall. The total stock reached 45.8 million sq ft in the Klang Valley.
It said the overall outlook for the retail sector was expected to remain optimistic due to a stronger ringgit, with total retail sales projected to grow from RM182.44bil in 2011 to RM279.83bil by 2015.
The average occupancy rate at retail centres registered a slight increase to 91% in Kuala Lumpur and 88% outside the capital. However, newly completed retail centres have experienced slow leasing rate, given the increasing market saturation of retail facilities even in good suburban locations.
Meanwhile, growth in online shopping poses a challenge to the domestic retail industry which is facing higher costs of goods and operations.
In 2010, there were about 1.1 million online shoppers with an average RM2,500 spending per head. According to a research by AC Nielson, the online purchasing market had reached RM1.8bil in 2010 and is expected to increase to RM5bil in 2014.
“This rising trend is a challenge to local merchants who will have to adopt multi-channel retail strategy to capture the rising online market,” Property Times added.
By The Star
Saturday, November 5, 2011
SDB in Penang debut with By The Sea
Landscaped project: SDB’s By The Sea in Batu Ferringhi will be the second beach front property for residential purposes along a stretch dominated by hotels. The project is being developed on a commercial title.
SELANGOR Dredging Bhd (SDB) will be making its debut on Penang shores, literally, with a breezy project known as By The Sea.
The foray into the island's famed Batu Ferringhi beach comes just several months after the launch of its fourth project in Singapore.
The Kuala Lumpur-based developer has completed several projects in the Klang Valley.
“I believe I could do something different with this piece of land in Penang,” says SDB managing director Teh Lip Kim.
The move by the property developer is seen as a strategy to extend its branding into cities favoured by the expatriate community and Asia's well-heeled, says the Real Estate and Housing Developers' Association Malaysia (Rehda) Penang chief Datuk Jerry Chan.
According to a survey by ECA International on 254 cities, George Town, the capital of Penang, is the eighth most liveable city in Asia, while Singapore is Asia's most liveable city.
The project comprises 138 units of serviced suites spread over three blocks of between five and 11 storeys. There will also be a low-rise commercial block to provide basic amenities to the residents and the public. The site of the development is located between Bank Negara's holiday complex and a community mosque.
The two hotels closest to it are the Hard Rock Hotel and Park Royal, both of which are just less than five minutes' walk away in opposite directions.
Teh's confidence in providing something different stems from the fact there will be two major focal points in the development that sits on 4.7 acres.
The first focal point of the RM230mil development is the beach which it will share with some of the island's most popular five-star and boutique hotels Shangri-La's Rasa Sayang Spa and Resort, Golden Sands Resort, Hard Rock Hotel and the newly-refurbished Lone Pine.
Her second focal point is Sungai Satu, or One River, which flows through the land. The development will use the river as a border to separate the suites from the amenities block. The river, which flows past a cluster of squatters, will be cleaned and rehabilitated by the time it flows into By The Sea.
“The rubbish will be cleared and the water clarity improved considerably by the time it flows past the project and enters the sea,” she says. The river banks will be landscaped to add to the serenity and ambience of By The Sea.
Because beaches are public areas, the project will be set 60 m inland in order to create a park and a recreation area for residents.
“There will be value in the open space,” Teh says.
Priced at an average of RM1,200 per sq ft, By The Sea will be setting new benchmark in a predominantly tourist-centred area dotted by hotels. It is expected to be completed in the first quarter of 2016.
At that price and in today's uncertain economic climate, Teh says she is targeting the Penang diaspora who would like to return to the island. The company is known for setting new benchmarks. In Puchong, the gated and guarded development AmanSari has set new standards in what was then a fairly ordinary township, while Ameera and Five Stones adds a new dimension to high-rise living in SS2, Petaling Jaya, an established township with predominantly landed terraces.
Teh's main forte is landscaped housing, and this normally comes with a premium. She will use the same formula in the Penang property.
While SDB's lifestyle concept developments may be new to the local Penang population, buyers in the Klang Valley and Singapore are familiar to its style and concept.
In Singapore, the company recently launched Hijauan on Cavenagh in District 9, one of the city state's most prestigious areas and just minutes away from Orchard Road. The six-storey residential block sits on a half-acre plot and will have a total of 41 apartments with units ranging between 463 sq ft and 1,884 sq ft.
The units are priced between S$1.3mil and S$3.5mil each.
It will be built on the former Cavenagh Mansion land. Hijauan is expected to be completed in the third quarter of 2015.
Cavenagh Road was named in honour of Maj-Gen William Orfeur Cavenagh, the last India-appointed governor of the Straits Settlements who governed from 1859 to 1867. Hijauan will have a combination of garden units, penthouse and typical units but all will enjoy the greenery in a coveted green lung within walking distance from Orchard Road and a tree-lined passageway besides the Istana and adjacent to 25,000 sq ft of lush state land.
The Istana is the official residence and working office for both the President and Prime Minister of Singapore and is also the place where they receive and entertain state guests.
A link bridge will connect Hijauan to Orchard's Centrepoint shopping mall. Twelve of the 41 units have been sold.
Besides Hijauan, SDB's other project in the city state includes Jia, OKIO and Gilstead Two. The company recently bought two acres in Singapore's Pasir Panjang near the National University of Singapore.
With today's concerns about eurozone, Teh says Singapore, like Britain, is seen as a safe haven for property investment, particularly if they are located in London's zone 1 and zone 2.
“Similarly, I see the same in Singapore. For me, (whether it is Singapore, Klang Valley or Penang), I want to do something different,” says Teh.
Next year, Teh says SDB will launch a development in Cheras that will set tongues a wagging.
For now, her focus will be By The Sea and Singapore's Hijauan.
By The Star
Concept and size set SDB apart from other sea-fronting developers
What is it about the sea that attracts both developers and homebuyers? Along the Penang coastal road from Gurney Drive to Batu Ferringhi, condominiums, apartments and landed housing compete for buyers and tenants.
Landed units and villas sit snugly on hill slopes fronting narrow roads on one side while multi-storey high-rise projects front the sea or the beach with names like Skyhomes By the Beach, The Cove, Moonlight Bay and Springtide Residences.
Registered and chartered valuer C.A. Lim & Co proprietor Lim Chien Aun says in a telephone interview: “Everbody builds on the beach. We hardly talk about the inlands anymore. The exclusiveness (of being at the beachfront) is gone. We are like Hawaii many years ago.”
Most of the multi-storey beach and seafront high-rise developments are located in the Gurney and Tanjung Bungah area.
Valuers and property consultants contacted via the telephone say all of them have been sold.
While some of these developments have been built more than 10 years ago, there are also some new ones like Springtide and Skyhomes By the Beach.
Old or new, many of them are hardly-occupied.
They serve as holiday or weekend homes for well-to-do Malaysians. Many of them belong to foreigners who use them to escape from the cold winter in their countries.
What differentiates these developments from Selangor Dredging Bhd's By The Sea is concept and size.
Many of Penang's super condominiums have built-ups ranging from 2,000 sq ft to 10,000 sq ft. These were built years ago when there was a cap on density, but not size.
As a result, developers went overboard, with some units having two kitchens and two entrances, valuers say. The idea then was to enable buyers to sub-divide these units themselves.
Says Lim: “The ideal size of 1,500 sq ft were very few or were in older and medium-cost apartments and these were spread out here and there.”
Besides the scarcity of luxurious 1,200sq ft to 1,500sq ft units, lifestyle homes were a trend introduced by E&O's Seri Tanjung Pinang several years ago.
Fin Chong, the former president of Master Builder Penang says: “The lifestyle concept came too early to Penang. Most of the buyers for E&O's project came from their own database outside Penang.”
With an average price of RM1,200 per sq ft, valuers and consultants say the price may be prohibitive for local Penangites. Prices of By The Sea range from RM1.2mil to RM3.3mil.
Says Chong: “Penang has its share of millionaires. They fall into two categories. The retired ones can afford their RM5mil landed properties because they do not want to pay the monthly charges. Then there is the working millionaire who can buy their RM5mil properties and are willing to pay heftily every month to support a lifestyle.”
SDB's By The Sea will the second beachfront suites in Batu Ferringhi, which is 5km away from Tanjung Bungah.
The first beachfront residential in Batu Ferringhi is Mahligai Baiduri, which has less than 50 units, says Henry Butcher Penang Shawn Ong.
“Those who want to live closer to town and all the amenities it has to offer will opt for Tanjung Bungah as Ferringhi comes across more as a holiday home where most of the hotels are located.
“Although the zoning is the same when it comes to resort properties, they are both commercial titles, Ferringhi will command a better value than Tanjung Bungah,” says Ong.
Besides SDB's By The Sea, the other Kuala Lumpur-based developers which have made inroads on the island includes the YTL group. It will be building a niche development next to the famed E&O Hotel in the city. IJM group will have a mixed integrated project on reclaimed land near the bridge that connects the island to the peninsula.
While both of these projects front the sea, they will not have a beach. They will instead be known as sea-front properties.
IJM's most recent launch The Light Collection 3 averages RM850 per sq ft while Seri Tanjung Quayside is priced between RM880 and RM1,100 per sq ft. Both of these are on reclaimed land.
By The Star
Landed units and villas sit snugly on hill slopes fronting narrow roads on one side while multi-storey high-rise projects front the sea or the beach with names like Skyhomes By the Beach, The Cove, Moonlight Bay and Springtide Residences.
Registered and chartered valuer C.A. Lim & Co proprietor Lim Chien Aun says in a telephone interview: “Everbody builds on the beach. We hardly talk about the inlands anymore. The exclusiveness (of being at the beachfront) is gone. We are like Hawaii many years ago.”
Most of the multi-storey beach and seafront high-rise developments are located in the Gurney and Tanjung Bungah area.
Valuers and property consultants contacted via the telephone say all of them have been sold.
While some of these developments have been built more than 10 years ago, there are also some new ones like Springtide and Skyhomes By the Beach.
Old or new, many of them are hardly-occupied.
They serve as holiday or weekend homes for well-to-do Malaysians. Many of them belong to foreigners who use them to escape from the cold winter in their countries.
What differentiates these developments from Selangor Dredging Bhd's By The Sea is concept and size.
Many of Penang's super condominiums have built-ups ranging from 2,000 sq ft to 10,000 sq ft. These were built years ago when there was a cap on density, but not size.
As a result, developers went overboard, with some units having two kitchens and two entrances, valuers say. The idea then was to enable buyers to sub-divide these units themselves.
Says Lim: “The ideal size of 1,500 sq ft were very few or were in older and medium-cost apartments and these were spread out here and there.”
Besides the scarcity of luxurious 1,200sq ft to 1,500sq ft units, lifestyle homes were a trend introduced by E&O's Seri Tanjung Pinang several years ago.
Fin Chong, the former president of Master Builder Penang says: “The lifestyle concept came too early to Penang. Most of the buyers for E&O's project came from their own database outside Penang.”
With an average price of RM1,200 per sq ft, valuers and consultants say the price may be prohibitive for local Penangites. Prices of By The Sea range from RM1.2mil to RM3.3mil.
Says Chong: “Penang has its share of millionaires. They fall into two categories. The retired ones can afford their RM5mil landed properties because they do not want to pay the monthly charges. Then there is the working millionaire who can buy their RM5mil properties and are willing to pay heftily every month to support a lifestyle.”
SDB's By The Sea will the second beachfront suites in Batu Ferringhi, which is 5km away from Tanjung Bungah.
The first beachfront residential in Batu Ferringhi is Mahligai Baiduri, which has less than 50 units, says Henry Butcher Penang Shawn Ong.
“Those who want to live closer to town and all the amenities it has to offer will opt for Tanjung Bungah as Ferringhi comes across more as a holiday home where most of the hotels are located.
“Although the zoning is the same when it comes to resort properties, they are both commercial titles, Ferringhi will command a better value than Tanjung Bungah,” says Ong.
Besides SDB's By The Sea, the other Kuala Lumpur-based developers which have made inroads on the island includes the YTL group. It will be building a niche development next to the famed E&O Hotel in the city. IJM group will have a mixed integrated project on reclaimed land near the bridge that connects the island to the peninsula.
While both of these projects front the sea, they will not have a beach. They will instead be known as sea-front properties.
IJM's most recent launch The Light Collection 3 averages RM850 per sq ft while Seri Tanjung Quayside is priced between RM880 and RM1,100 per sq ft. Both of these are on reclaimed land.
By The Star
Ting plans multi-billion ringgit project for Langkawi
Langkawi: Langkawi's economic fortunes as a tourist destination may be enhanced if Sarawak businessman Tan Sri Ting Pek Khiing has his way.
He is proposing a reclamation of some 80 hectares of land for the region's biggest marina centre, along with residential and commercial properties.
The proposed multi-billion ringgit "Port Langkasuka" project will comprise nine parcels of land containing among others, a golf course, resort and private villas.
"A RM200 million breakwater was built in the mid-1990s as a basis for this proposed development.
"I am hopeful that we can obtain the necessary approvals from the state government to proceed," he told reporters after former prime minister Tun Dr Mahathir Mohamad opened the Four Points by Sheraton Langkawi Resort here yesterday.
The resort, which was previously known as the Langkasuka Beach Resort, underwent a RM30 million refurbishment prior to the rebranding.
The resort is owned by Global Upline Sdn Bhd - which also owns the Four Points by Sheraton property in Kuching, Sarawak.
Ting, who is Global Upline's group adviser, was instrumental in building Langkawi's first five-star resort Sheraton Langkawi Beach Resort 20 years ago and also the Delima Resort Langkawi.
Dr Mahathir, who during his tenure as prime minister worked closely with Ting, is raising the island's profile as a preferred tourism destination, said that the duty-free island still has a lot of potential to be developed.
"There is still a lot of potential for resorts, as we have not used the mountains (to build resorts). Since the weather is cool up there, why not build a mountain resort?
"Perhaps mountain bike racing can be introduced," he noted, and said the five-year 'hiatus' which was taken after his tenure by the authorities in promoting Langkawi, can be addressed by allocating budgets to market the island better.
"Build another port, since there is demand for it and we have many good locations where the port can be built," Dr Mahathir added.
By Business Times
Commercial development not a priority for MRT Co
Contrary to perception that Klang Valley's multi-billion My Rapid Transit (MRT) would have a big property angle to make the project viable, this is not likely to be the case.
MRT Co chief executive officer Datuk Azhar Abdul Hamid says that following the rail and property development model of Hong Kong's Mass Transit Railway (MTR) Corp Ltd is not feasible here as “our civil and legal system does not allow that luxury.”
MTR Corp, which is listed on the Hong Kong stock exchange with a market capitalisation of HK$145.48bil (RM58.5bil), is one of the largest property managers in the special administrative region.
In addition to its railway operations, MTR Corp is involved in the development of residential and commercial projects, property leasing and management, advertising, telecommunication services and international consultancy services.
“Given a choice, I would want to follow the Hong Kong model. But when we look at Hong Kong and Singapore, they have specific laws that allow for the development of a mass rail transit. We don't. I do not have a masterplan that existed 20 years ago which said Kuala Lumpur would have an MRT system. This is something that was put together a few years ago.”
Properties affected: Land owners in Jalan Bukit Bintang will be among those affected by tunneling works for the 9.5km underground section of the MRT Sungai Buloh-Kajang line.
Still, this does not mean that there will be no property development to help sustain the viability of the MRT.
Azhar says that in Sungai Buloh, where the MRT station will be an interchange station to Sungai Buloh KTM Komuter, there is an opportunity there to work with KTM Bhd on a commercial development.
“If there are opportunities for property developments, yes, we will do it.”
To date, MRT Co has not made an assessment of the potential for property development along the 51km MRT Sungai Buloh-Kajang line.
“Right now, the priority is to get the project off the ground.”
Under Azhar's helm, one priority is to reduce MRT project costs via minimising compulsory land acquisition as far as possible.
Besides a huge reduction in what might have amounted to between RM2bil and RM3bil in land acqusition costs, according to some estimates, this would also avoid creating resentment from affected property owners.
“This is a project for the people. Compulsory land acquisition undertaken via the Land Acquisition Act 1960 is a last resort for us.”
According to the Land Public Transport Commission (SPAD), 70% of the 51km MRT Sungai Buloh-Kajang alignment runs on road reserves and Government land while the rest is on private land.
In Azhar's opinion, holding discussions with affected property owners and tenants can be beneficial to all concerned parties.
“To me, this is an easier approach although it involves a lot more work. It is less painful.”
At the moment, Azhar is busy resolving disputes with property owners in Jalan Sultan (Chinatown), Jalan Inai and Jalan Bukit Bintang who would be affected by tunneling works for the 9.5km underground section of the MRT Sungai Buloh-Kajang line.
On Thursday, MRT Co said 16 out of 23 lot owners in Jalan Sultan (Chinatown), as well as 20 out of 21 lot owners in Jalan Inai, have signed the memorandum pledging to pursue a mutual agreement.
Not possible: Azhar says that following the rail and property development model of Hong Kong’s Mass Transit Railway Corp Ltd is not feasible here as ‘our civil and legal system does not allow that luxury.’
Lawyers representing the parties are due to meet next week to work out the conditions for mutual agreements.
Concerning Jalan Sultan (Chinatown), Azhar says, “The argument was they had been living there for decades, and there are heritage issues. So I asked my team Do we really want the land?'. I reasoned that we are just tunnelling 100ft underground. We are not going to demolish any building.”
He points out that the Government would compensate the affected parties for loss of business as well as legal fees.
“We can even work out terms for compensation for temporary accomodation and making good damages incurred during construction work for the MRT.”
Work on the MRT line in Jalan Sultan is expected to be in the second quarter of 2014, and tenants of the affected shop lots would need to move out for a period of up to six months for safety reasons.
“We must make sure that when we tunnel through, nothing happens on the top surface because they are old buildings.”
Azhar says among the items to be proposed to affected property owners is a mention on the property title that a tunnel exists below the building.
“One day, you may sell your property. So, if you are going to do anything, please refer to MRT Co because we need to protect the tunnel that's all.”
Regarding Jalan Inai, Azhar is quite optimistic of a positive outcome as a property developer that is buying some lots in the area has agreed to allow tunneling works, subject to a mutual agreement being signed.
“Here, the property developer wanted us to assist them with the authorities concerning their project. So, we told them we can bring Kuala Lumpur City Hall (DBKL) in during the discussions on the mutual agreement. DBKL is willing to work with us, and answer the property developer's queries. In turn, when the property developer undertakes the piling work for their project, we need to make sure that it does not impact the MRT tunnel.”
According to Azhar, the property developer has essentially agreed that some buildings on their lots would be demolished.
“The property developer is going to re-develop the land anyway.”
Regarding Jalan Bukit Bintang, Azhar says the area is “tight” and buildings would need to be demolished during the tunneling works.
About 21 lots in the area, believed to include two fast-food restaurants namely McDonald's and KFC, would be affected.
Azhar says MRT Co has offered two options to affected property owners in Jalan Bukit Bintang.
One option is for a joint venture with the owners of the demolished lots to re-develop the area to obtain enchanced values, while the other is to rebuild the structures as per their original condition.
“We kept engaging the owners and recently, many of them have indicated that they are agreeable in principle to our proposals. They will not lose their properties. Also, we do need some land for technical requirements such as air ventilation shafts so maybe one lot owner in Jalan Bukit Bintang might be willing to sell. We will work out these details with the property owners,” he says.
At this juncture, it is still uncertain whether affected property owners in Jalan Bukit Bintang will opt for a joint re-development project with MRT Co or ask for the structures to be rebuilt.
Azhar is prepared for more disputes concerning properties affected by the MRT line in the near future.
“This will not be the end of it. Each affected area will need different solutions.”
Meanwhile, areas and developments such as Sentul, Pusat Bandar Damansara and SP Setia Bhd's KL Eco City should see the strongest property upside potential, according to a HwangDBS Vickers Research report.
HwangDBS Vickers notes that property developers would be rushing to acquire landbank with the MRT factor, given the long conversion cycle (five to six years from land acquisition to construction completion) and rising land values.
A banked-backed property analyst notes that existing residential and commercial units located near an MRT transfer station would benefit from an upside in capital and rental values.
She also points out that new and future property developments would play the MRT factor in their launching prices, and such properties would be priced at a premium.
“As such, buyers of new properties that are located near MRT stations would probably take a number of years to reap significant returns on their investments.”
By The Star
MRT Co chief executive officer Datuk Azhar Abdul Hamid says that following the rail and property development model of Hong Kong's Mass Transit Railway (MTR) Corp Ltd is not feasible here as “our civil and legal system does not allow that luxury.”
MTR Corp, which is listed on the Hong Kong stock exchange with a market capitalisation of HK$145.48bil (RM58.5bil), is one of the largest property managers in the special administrative region.
In addition to its railway operations, MTR Corp is involved in the development of residential and commercial projects, property leasing and management, advertising, telecommunication services and international consultancy services.
“Given a choice, I would want to follow the Hong Kong model. But when we look at Hong Kong and Singapore, they have specific laws that allow for the development of a mass rail transit. We don't. I do not have a masterplan that existed 20 years ago which said Kuala Lumpur would have an MRT system. This is something that was put together a few years ago.”
Properties affected: Land owners in Jalan Bukit Bintang will be among those affected by tunneling works for the 9.5km underground section of the MRT Sungai Buloh-Kajang line.
Still, this does not mean that there will be no property development to help sustain the viability of the MRT.
Azhar says that in Sungai Buloh, where the MRT station will be an interchange station to Sungai Buloh KTM Komuter, there is an opportunity there to work with KTM Bhd on a commercial development.
“If there are opportunities for property developments, yes, we will do it.”
To date, MRT Co has not made an assessment of the potential for property development along the 51km MRT Sungai Buloh-Kajang line.
“Right now, the priority is to get the project off the ground.”
Under Azhar's helm, one priority is to reduce MRT project costs via minimising compulsory land acquisition as far as possible.
Besides a huge reduction in what might have amounted to between RM2bil and RM3bil in land acqusition costs, according to some estimates, this would also avoid creating resentment from affected property owners.
“This is a project for the people. Compulsory land acquisition undertaken via the Land Acquisition Act 1960 is a last resort for us.”
According to the Land Public Transport Commission (SPAD), 70% of the 51km MRT Sungai Buloh-Kajang alignment runs on road reserves and Government land while the rest is on private land.
In Azhar's opinion, holding discussions with affected property owners and tenants can be beneficial to all concerned parties.
“To me, this is an easier approach although it involves a lot more work. It is less painful.”
At the moment, Azhar is busy resolving disputes with property owners in Jalan Sultan (Chinatown), Jalan Inai and Jalan Bukit Bintang who would be affected by tunneling works for the 9.5km underground section of the MRT Sungai Buloh-Kajang line.
On Thursday, MRT Co said 16 out of 23 lot owners in Jalan Sultan (Chinatown), as well as 20 out of 21 lot owners in Jalan Inai, have signed the memorandum pledging to pursue a mutual agreement.
Not possible: Azhar says that following the rail and property development model of Hong Kong’s Mass Transit Railway Corp Ltd is not feasible here as ‘our civil and legal system does not allow that luxury.’
Lawyers representing the parties are due to meet next week to work out the conditions for mutual agreements.
Concerning Jalan Sultan (Chinatown), Azhar says, “The argument was they had been living there for decades, and there are heritage issues. So I asked my team Do we really want the land?'. I reasoned that we are just tunnelling 100ft underground. We are not going to demolish any building.”
He points out that the Government would compensate the affected parties for loss of business as well as legal fees.
“We can even work out terms for compensation for temporary accomodation and making good damages incurred during construction work for the MRT.”
Work on the MRT line in Jalan Sultan is expected to be in the second quarter of 2014, and tenants of the affected shop lots would need to move out for a period of up to six months for safety reasons.
“We must make sure that when we tunnel through, nothing happens on the top surface because they are old buildings.”
Azhar says among the items to be proposed to affected property owners is a mention on the property title that a tunnel exists below the building.
“One day, you may sell your property. So, if you are going to do anything, please refer to MRT Co because we need to protect the tunnel that's all.”
Regarding Jalan Inai, Azhar is quite optimistic of a positive outcome as a property developer that is buying some lots in the area has agreed to allow tunneling works, subject to a mutual agreement being signed.
“Here, the property developer wanted us to assist them with the authorities concerning their project. So, we told them we can bring Kuala Lumpur City Hall (DBKL) in during the discussions on the mutual agreement. DBKL is willing to work with us, and answer the property developer's queries. In turn, when the property developer undertakes the piling work for their project, we need to make sure that it does not impact the MRT tunnel.”
According to Azhar, the property developer has essentially agreed that some buildings on their lots would be demolished.
“The property developer is going to re-develop the land anyway.”
Regarding Jalan Bukit Bintang, Azhar says the area is “tight” and buildings would need to be demolished during the tunneling works.
About 21 lots in the area, believed to include two fast-food restaurants namely McDonald's and KFC, would be affected.
Azhar says MRT Co has offered two options to affected property owners in Jalan Bukit Bintang.
One option is for a joint venture with the owners of the demolished lots to re-develop the area to obtain enchanced values, while the other is to rebuild the structures as per their original condition.
“We kept engaging the owners and recently, many of them have indicated that they are agreeable in principle to our proposals. They will not lose their properties. Also, we do need some land for technical requirements such as air ventilation shafts so maybe one lot owner in Jalan Bukit Bintang might be willing to sell. We will work out these details with the property owners,” he says.
At this juncture, it is still uncertain whether affected property owners in Jalan Bukit Bintang will opt for a joint re-development project with MRT Co or ask for the structures to be rebuilt.
Azhar is prepared for more disputes concerning properties affected by the MRT line in the near future.
“This will not be the end of it. Each affected area will need different solutions.”
Meanwhile, areas and developments such as Sentul, Pusat Bandar Damansara and SP Setia Bhd's KL Eco City should see the strongest property upside potential, according to a HwangDBS Vickers Research report.
HwangDBS Vickers notes that property developers would be rushing to acquire landbank with the MRT factor, given the long conversion cycle (five to six years from land acquisition to construction completion) and rising land values.
A banked-backed property analyst notes that existing residential and commercial units located near an MRT transfer station would benefit from an upside in capital and rental values.
She also points out that new and future property developments would play the MRT factor in their launching prices, and such properties would be priced at a premium.
“As such, buyers of new properties that are located near MRT stations would probably take a number of years to reap significant returns on their investments.”
By The Star
MPCorp to begin works on city in Iskandar soon
PETALING JAYA: Malaysia Pacific Corp Bhd (MPCorp) hopes to start civil construction works for its flagship project in Iskandar Malaysia by the first quarter next year, starting with the infrastructure surrounding its Asia Pacific Trade and Expo City (APTEC).
Speaking on the sidelines of the World Chinese Economic Forum, chairman Datuk Bill Ch’ng the company would collaborate with the Government to integrate and build the infrastructure and amenities like roads, rails and highways that would connect to the city.
He said the investment for APTEC, one of Iskandar Malaysia’s flagship projects, was about RM2.9bil from the total investment of RM4.5bil in the Lakehill Resort City.
“We are still in the midst of discussion with different investors and it will be partly funded by AmanahRaya,” he said.
APTEC and the LakeHill Resort City are developed by LakeHill Resort Development Sdn Bhd, a joint-venture between MPCorp and AmanahRaya Development Bhd.
Ch’ng said the development of APTEC, which was envisioned to be a major trading hub in the region for manufacturers and buyers alike, would not be undertaken on a piecemeal basis.
By The Star
Speaking on the sidelines of the World Chinese Economic Forum, chairman Datuk Bill Ch’ng the company would collaborate with the Government to integrate and build the infrastructure and amenities like roads, rails and highways that would connect to the city.
He said the investment for APTEC, one of Iskandar Malaysia’s flagship projects, was about RM2.9bil from the total investment of RM4.5bil in the Lakehill Resort City.
“We are still in the midst of discussion with different investors and it will be partly funded by AmanahRaya,” he said.
APTEC and the LakeHill Resort City are developed by LakeHill Resort Development Sdn Bhd, a joint-venture between MPCorp and AmanahRaya Development Bhd.
Ch’ng said the development of APTEC, which was envisioned to be a major trading hub in the region for manufacturers and buyers alike, would not be undertaken on a piecemeal basis.
By The Star
TH Prop to help develop Tabung Haji's landbank
SEPANG: TH Properties Sdn Bhd plans to help parent Lembaga Tabung Haji develop its landbank nationwide.
The move should help bolster TH Properties' own property development and construction arm, its chairman Datuk Azizan Abd Rahman said in an interview with Business Times.
The fledgling property and construction unit is currently involved in Tabung Haji's integrated Haj Pilgrims Complex development at the Kuala Lumpur International Airport, but it needs more jobs to expand its order book.
The complex, which is expected to be completed by 2014, will comprise Haj facilities, a hotel and convention centre. Tabung Haji is also building similar facilities in Terengganu and Kedah.
The complex will help generate income for Tabung Haji through the hospitality and tourism sector.
"One of our responsibilities is to look after Tabung Haji's investment funds and one way is by investing in property development," said Azizan.
The core activities of Tabung Haji is to manage funds generated by deposits from Muslims in Malaysia and invest the accumulated funds to earn income for the depositors.
TH Properties currently has two projects in the Klang Valley, including Bandar Enstek at Sepang and a residential project in Keramat.
Bandar Enstek, which started in 1999, is expected to generate a gross development value of RM9.2 billion upon completion in 2025.
For the project in Keramat, TH Properties is awaiting approvals from the relevant authorities to build luxury villas and condominiums worth a combined RM700 million.
"We hope to launch the project by the middle of next year," Azizan said.
For construction, TH Properties has a contract worth RM400 million to develop a complex in Putrajaya for the Department of Islamic Development Malaysia.
"We have started piling work and are looking for more projects to build our order book," Azizan said.
By Business Times
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