Ivory and Dijaya to develop RM10bil mixed project in Penang

Penang Development Corp general manager Datuk Rosli Jaafar (left) exchanging documents with Datuk Low Eng Hock. With them are Lim Guan Eng and State Economic Planning Unit deputy director Hafidzah Hassan.

GEORGE TOWN: Tropicana Ivory Sdn Bhd (TISB) is investing RM10bil in a mixed residential and commercial property project on a 102.56 acre site in Bayan Mutiara, Penang.

TISB is a 51:49 joint venture between Ivory Properties Group Bhd and Dijaya Corp Bhd.

Ivory Properties chairman and chief executive Datuk Low Eng Hock said the development covered 102.56 acres, of which 67.56 acres comprised existing land and 35 acres were to be reclaimed.

“The plan for Penang World City is to develop a mix of residential units, shopping mall, office suites, office tower, hotel, retail spaces and open mall with boulevard.

“The development will be completed in eight years and work on the first phase is scheduled to begin next year,” he said.

The land is strategically located within Bayan Mutiara, a new development hub in the eastern part of the Tun Dr Lim Chong Eu Expressway and in the vicinity of Sungai Nibong.

Low said this at the signing of the purchase and development agreement between Chief Minister of Penang (Inc), Penang Development Corp and Ivory Properties. Penang Chief Minister Lim Guan Eng witnessed the ceremony.

Ivory Properties is proposing a renounceable rights issue of 186,000,000 new ordinary shares of 50 sen each together with 186,000,000 new free detachable warrants to pay for the land and the development of the project.

Ivory Properties has to pay 10% as downpayment of the RM1.07bil sale price for the land. It has paid 2%, with the remaining 8% to be paid within 90 days after the signing of the purchase and development agreement.

On the development concept, Ivory Properties operation director Murly Manokharan said the emphasis of the project would be on green buildings, green township and a healthy lifestyle within its community.

“We have proposed for pedestrian network and bicycle tracks connecting to almost each and every building to reduce carbon emission within the township,” he said.

Murly added that there was a proposal for a museum, a landscaped outdoor amphitheatre and educational interactive facilities, providing state-of-the-art entertainment for all, he said.

By The Star

Dijaya, Ivory team up

Dijaya Corp Bhd and Ivory Properties Group Bhd will jointly develop a land in Penang that could generate RM10 billion in gross development value.

The project in Bayan Mutiara, Penang, will be undertaken by a joint-venture company called Tropicana Ivory Sdn Bhd (TISB).

Dijaya will hold 49 per cent of TISB, while Ivory Properties will have the remaining 51 per cent.

The development covers 41ha of land, of which 27ha is existing land. Another 5.6ha will be reclaimed.

The land is being bought for RM1.07 billion. It will be converted into a mix of residential, shopping mall, hotel, office suites, office towers, retail spaces and open mall with boulevard.

It will also include construction of Grade A offices and a specialist medical centre if needed.

The development will be completed over the next eight years and work on the first phase is scheduled to begin next year.

Under the deal signed yesterday, Dijaya will extend financial assistance to TISB in the form of shareholders advances, guarantee, indemnity or collateral of up to RM525.4 million or 49 per cent of the total consideration of the development land.

Ivory Properties may also provide financial assistance of RM482.5 million for the same purpose.

The first tranche of the RM1.07 billion land purchase will be funded through internally generated funds by Ivory and Dijaya.

Subsequent payments will be funded through a mix of internally generated funds and/or bank borrowings.

By Business Times

Pavilion REIT eyes RM710m IPO

KUALA LUMPUR Pavilion Real Estate Investment Trust (REIT) aims to raise up to RM710 million in an initial public offering (IPO), which would be the fourth largest listing in the country this year.

The company will offer 790 million shares at an indicative price of 88-90 sen per share, according to the IPO term sheet obtained by Reuters.

Last month, Reuters reported that the IPO would raise about RM700 million, making it the fourth largest in Malaysia this year after Bumi Armada Bhd, MSM Malaysia Holdings Bhd and UOA Development Bhd.

The proceeds would be used for working capital and for partial payment of acquisitions, according to the information sheet. CIMB, Credit Suisse and Maybank are the joint global bookrunners for the deal.

The Employees Provident Fund and Kumpulan Wang Persaraan and insurance companies Great Eastern Life and American International Assurance Bhd are among those roped in as cornerstone investors for the IPO.

By Business Times

Iskandar draws RM600mil investment for Medini township

PETALING JAYA: Iskandar Investment Bhd's flagship development Medini in Iskandar Malaysia has attracted property developer Darul Tinggi Sdn Bhd to invest in a project with a gross development value of RM600mil.

This project is secured one week after Medini secured investments from Beijing-based property developer Zhuoda Group.

With the signing of a shareholders and subscription agreement and a development and lease purchase agreement between Iskandar's wholly owned unit Medini Land Sdn Bhd and Darul Tinggi, both parties had agreed to set up a joint-venture company for the development of a high-rise mid-premium condominium in Medini, said Iskandar in a statement.

The joint-venture company. Distinctive Resources Sdn Bhd, will be 80% owned by Darul Tinggi and 20% by Medini Land.

Iskandar said the residential enclave was designed to be a contemporary lifestyle development and would be implemented in two phases.

Construction work for Phase 1 involving 351 condominium units is scheduled to take place in May, 2012.

The second phase comprising the remaining 334 condominium units is expected to take place 20 months upon completion of the first phase.

By The Star

SP Setia Australian venture pays off

Last Monday, Franklin Street in Melbourne was abuzz as kompang players and lion dancers readied themselves at the entrance to SP Setia Bhd’s new sales gallery.

Malaysia’s biggest property developer launched its Fulton Lane property that morning, which is presently just an empty parking lot across the street, but by 2014 will be home to two high-rise apartments.

If the turnout was any indication, buyer interest is intact. Corporate-types and well-heeled guests packed the gallery showcasing SP Setia’s maiden venture into Australia.

With this property, the developer is hoping to attract those who seek proximity to Melbourne’s many amenities; Queen Victoria market, RMIT and La Trobe University are some of the places in walking distance to it.

Sandwiched between two streets, the one-acre, A$470mil gross development value project will comprise a 29-storey tower facing Franklin Street with 291 apartment units, and a 45-storey tower facing A’Beckett Street with 409 units. Connecting the two blocks is a retail podium that rises to nine levels. SP Setia president and CEO Tan Sri Liew Kee Sin says the first tower has sold about 80% of its lots and the second tower, the taller of the two, about 30%.

The first tower was bought by mostly Malaysians – at its preview sale a few months ago, 70% was snapped up within three days. The second tower is targeted at local Australian buyers as well as those from Indonesia, Singapore, Brunei, and Hong Kong. In a few weeks, SP Setia will head to China to market it there. Buyers for the first tower are investors and owner-occupiers while the second tower will primarily be owner-occupiers.

The project is expected to fetch a margin of 20%, comparable to developments in other major cities in emerging markets.

Fulton Lane’s apartments, which come with one, two and three-bedrooms, start from A$365,000. Facilities include a garden terrace, gymnasium, indoor heated lap pool, a lounge cum reading room, two areas for barbecue, and a theatrette.

The “lane” in its name is not accidental – SP Setia plans to create a lane between Franklin and A’Beckett Street to mimic Melbourne’s “laneway culture”.

And no wonder - the city’s lanes and alleys are its claim to fame, where tourists and locals flock to savour Melbourne’s coffee and cuisine.

SP Setia’s venture into Australia has also enabled it to pick up on that market’s best practices, Liew says. For one, environmental sustainability is a prime concern there, and being a developed country, Australia also operates more transparently.

This, Liew points out, is something SP Setia can learn from.

But even as Australia prospers from a mining boom, there is relentless talk of oversupply in the housing market.

The Australian Bureau of Statistics recently released data showing that new construction of apartments in Victoria for the March quarter this year hit 5,168, the second highest on record. Similarly, a report out last week from the Housing Industry Association found that new home sales were down 14% in the third quarter, and suggested the drop in house prices may accelerate.

CB Richard Ellis (M) Sdn Bhd executive director Paul Khong says Melbourne’s property market is currently “toppish” due to the supply from various new projects.

“It has been a popular destination for foreign buyers investing in Australia especially for education purposes, but the prices have already moved up quite a bit over the last 24 months,” he tells StarBizWeek.

“We expect residential prices in Melbourne to be flattish and do not see any drastic oversupply that may cause a major dip in capital values.

“We expect capital values to stabilise as we see good support on the tenancy side,” he says, adding that residential yield is about 4% to 5% and anticipated to stay at that level.

Nonetheless, Melbourne is widely acknowledged as Australia’s fastest growing city, its population boosted by students and emigrants.

The State Australian Cities report by an Australian ministry says the population in Melbourne grew by 605,000 to 4.077 million over the past 10 years and is projected to rise to five million by 2027 at the current growth rate.

SP Setia is probably hoping for that outcome as it is in the midst of planning for an upcoming project in South Yarra, also in Melbourne, which sits on 2.23 acres and may accommodate up to 329 apartments.

A property analyst thinks that Fulton Lane can count as SP Setia’s first successful foray overseas.

“Their project in Vietnam is not making money, the Singapore one has yet to take off, and they’ve given up on the China joint-venture. So it (Fulton Lane) is good news,” he says.

By The Star

TTDI the first township to gain from Safe City programme

GOING around Taman Tun Dr Ismail, one would notice the number of changes that has taken place over the past months.

The township is the first to enjoy the benefits of the Safe City programme under the National Key Results Area (NKRA).

Housing and Local Government Minister Datuk Seri Chor Chee Heung had set aside a budget of RM1.45mil for the scheme implemented in TTDI in October.

TTDI Residents Association chairman Mohd Hatim Abdullah said most of the features installed in the neighbourhood were requested by the residents.


Finer details: A worker repairing the damaged fencing along the playground.

Hatim said the residents wanted the Government to install railings along walkways, safety mirrors and closed circuit cameras.

He said they were happy that their area was chosen for the pilot project.

He added that there were about 30 crime cases a month in TTDI involving house burgalry, car break-ins and snatch thefts.

So far, Kuala Lumpur City Hall (DBKL) has installed seven safety mirrors at the commercial area in TTDI to help curb crime.

Safety mirrors can been at the backlanes of Jalan Aminuddin Baki and Jalan Burhanuddin Helmi especially for pedestrians to look out for suspicious characters in the alley.

Three emergency hotline notice boards were also put up in Jalan Burhanuddin Helmi, Jalan Tun Mohd Fuad and Jalan Dato’ Sulaiman.

Railings to enable pedestrians to walk along the pathway without fear have also been put up along Jalan Burhanuddin Helmi.

“We had also requested for a perimeter fence made of galvanised steel at the border of TTDI and Kampung Sungai Penchala, however, due to budget constraints a chain link fence is being erected,” added Hatim.

According to him, residents have been waiting for a fence for about 15 years as the roads heading into TTDI near Lorong Rahim Kajai 5 would be crowded during peak hours.

Some of the residents also proposed that the playgrounds in TTDI be lighted up to deter youngsters from hanging out and indulging in bad habits.


Protected: Railings are installed along Jalan Burhanuddin Helmi to enable pedestrians to walk along the pathway without fear of being robbed by motorcyclists. There is also a sign bearing emergency numbers.

So far the playgrounds in Lorong Rahim Kajai 4 and Lorong Burhanuddin 8 have been fitted with streetlights.

Several hotspots will have new streetlights with 250watts compared with the 100watts now.

Hatim said they were waiting for all their other requests to be fulfilled before the NKRA sent another feedback form to gather the residents’ opinion.

“We have informed all the residents that we are working closely with the Government and DBKL and are looking forward to getting the approval for a gated and guarded community,” he said.

TTDI has long since requested for a gated and guarded community, however, the Government needed 80% of residents’ consent to do so.

Hatim said they had the consent of 60% of the residents now.

Hatim said they would continue to work with the government until the residents feel that TTDI had become a safe township.

By The Star

Make city living enticing

The heavy traffic leading into Kuala Lumpur in the morning and out of the city in the evening may be acommon sight, but there are a number of lessons that can be learned from it.

I'm sure many of us would ask why people who work in the city can't just stay in the city as then there would not be such a massive flow of traffic.

This daily occurrence on roads leading into the city and those within the city congests the city in the day time, and by night the town becomes quiet again, and this is a telling sign that Klang Valley folks have not embraced the concept of city living.

It is worth finding out why the capital city is still not popular as a residential address.

Instead of opting for the convenience of living in the city and avoiding the hassle of having to brave those heavily congested roads on a daily basis, many have chosen to stay in the suburban areas.

Although many of them may be feeling quite overwhelmed by now, they have little choice but to put up with the daily “pilgrimage” on a daily basis just to get to their work place.

The way our cities and towns have been planned certainly has something to do with it, and it looks like we can do with some tweaking and re-planning to turn our cities around to become lesser of a dilemmaand more friendly to city folks and road users.

Our town planners should learn from the current inadequacies and shortcomings that are plaguing our cities, and it is still not too late to make amends and attend to those.

Identifying the prevailing shortcomings that have rendered city living unappealing for many Klang Valley folks will provide the necessary solutions.

One of the obvious reasons is a lack of affordable housing and community living projects in the inner city.

Many would not mind owning a house in the city if there are more residences that have an average built-up of 1,000 sq ft to 2,000 sq ft, and are priced between RM300,000 to RM500,000.

But sadly, most of the housing units are quite sizeable from 2,000 sq ft to more than 10,000 sq ft and of course these are tagged at nothing less than RM1mil a unit making them far from affordable.

For this reason, many of those working in the city centre have little choice but to brave the daily jams. There is also a large number among them who commute from as far as Bentong, Nilai and Seremban.

But for many, living in the suburbs also means they have the luxury of choosing from a wider range of housing options at lower prices, while city living usually equates to a higher cost of living.

To address the issue of cost, which developers usually attribute to the high cost of land and construction materials, the redevelopment plans for the Sungai Besi airport and other Government land (Jalan Cochrane and the 3,300 acre Rubber Research Institute in Sungei Buloh) should have a larger ratio of residential component versus commercial property.

There is still an over supply of commercial property, including office space, in the capital city, and priority should be given to increase the number of residential units in those projects to meet demand.

Developers should also look into adopting newer technology and construction methods and materials that have higher quality and durability at lower cost.

If we look around, there are many old buildings that are deplorable and have been vacant for many years, and it will be a great idea to restore these buildings and give them a new lease of life.

We can take a cue from Singapore's Urban Redevelopment Authority (URA) as it goes about redeveloping the city state's old buildings by offering them up for redevelopment through open tenders.

As a one-stop agency, the URA will invite developers to bid through open tenders and submit their plans for the redevelopment process.

The selection of the successful tender will be based on a set of pre-determined criteria, which besides costing, includes the ability of the project to add value to the people's living, working and recreational space.

Likewise, there are also many opportunities for the dilapidated parts of our city to be revived and for some of the older and idle commercial buildings and assets to be torn down and rebuilt into residences.

In the planning process, it is important to retain a healthy balance between the built and unbuilt by retaining some parts of the natural environment as green lungs and parks.

Open space is important for people to unwind and take a breather from the hustle and bustle of city life and to promote a happier and healthier populace.

Deputy news editor Angie Ng believes KL city folks deserve to have at least another two public parks (in the likes of London's Hyde Park) to walk about.

By The Star

No loss occurred over Talam takeover

The Selangor Government hopes to make RM1.2bil after taking over Talam Corporation two years ago.

Mentri Besar Tan Sri Khalid Ibrahim said the acquired plots of land were in Kuala Langat, Kuala Selangor and Hulu Selangor.

“They are from projects in Bukit Beruntung, Bestari Jaya and Canal City,’’ he said in reply to a question from Datuk Mohammad Bushro Mat Johor (BN-Paya Jaras).

Khalid said the state had also cashed out RM50mil earlier by taking over Talam.

He said the state had obtained bank loans as part of its efforts in paying off debts owed by Talam to some companies.

“We incurred a total cost of RM391mil from the takeover bid.

‘’We have been successful in taking back the plots of land that have been given to cronies.

“We have returned the land to the people of Selangor with the opportunity of making RM1.2bil from the land value alone,’’ he said.

Khalid said a book would be released on how the reconciliation exercise was done.

He also said there was an exhibition on the exercise at the state secretariat in Shah Alam recently.

By The Star

S'pore billionaire to buy 10ha from Johor royal family

PETALING JAYA: Singapore billionaire Peter Lim, dubbed the “Remisier King”, has signed a deal with the Johor royal family to acquire 10ha in Johor for the development of a medical hub and a marina city.


Lim wants to develop the 10ha into a medical hub and marina city.

The joint venture company behind the development is Best Blend Sdn Bhd, which Lim owns 70%, and the royal family owns 30%. Lim is ranked by Forbes business magazine as Singapore's eighth wealthiest individual with a fortune of S$1.8bil.

“The cost of the medical hub is estimated at S$200mil and the total development cost could range from S$1bil to S$2bil. The medical hub will be funded through a mixture of debt and equity,” said Koh Kim Huat, a director of Best Blend.

The hospital, when completed, will be managed by Thomson International Health Services, the consultancy and management division of Thomson Medical Pte Ltd.

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

The site of this hub is located at Bandar Johor Baru, and is within close proximity to Johor's new royal customs, immigration and quarantine complex as well as Singapore's Woodlands checkpoint.

The first phase of the project will see the construction of a medical hub which will include a private hospital and healthcare-related facilities and also supporting facilities including serviced apartments, a mega shopping mall and a mega fully secured car park. A special feature of the complex is a state-of-the-art security deterrence and detection systems.

The 200-bed general hospital will house centres of excellence for diabetes, orthopaedics, ophthalmology, women's health, and a state-of-the-art day surgery centre.

“The medical hub will provide quality private healthcare at affordable prices to Singaporeans and Malaysians,” said Koh.

When asked whether TMC Life Sciences would be involved in the medical hub, Koh said there were no plans at this point.

Lim made headlines in Malaysia last year when he bought a substantial stake in TMC Life Sciences Bhd, a private healthcare group which is popular for its fertility treatments. Lim is now the largest shareholder of TMC with 32.59% stake.

Koh said fertility would be one of the key focus segments of the hospital. Among others, the focus for the hub will be the treatment of chronic and lifestyle diseases associated with growing affluence and which afflicts increasing numbers of Malaysians. The hub aims to provide a one-stop centre for chronic disease management of diabetic patients. A training school will be set up for nurses and medical technicians.

By The Star

Sime to unveil E&O plan soon

KUALA LUMPUR Sime Darby Bhd, which bought a 30 per cent stake in Eastern & Oriental Bhd (E&O), will unveil its potential collaboration with the property developer on November 25.

Sime president and group chief executive Datuk Mohd Bakke Salleh said more details would be known on that day, which is also the day that Sime will announce its first quarter results ended September.

"We will announce the E&O collaboration, outlook for the next financial year as well as Sime's 2012 KPI (Key Performance Index) target on November 25," Bakke said after its annual shareholders meeting.

Sime bought the 30 per cent stake in the Penang-based property developer for RM766 million in August. The conglomerate, however, has not nominated any board representation in E&O, even though it has management control.

"No plans yet on board representation but the directors will have to go through the process."

Bakke said Sime also had no plans to increase its stake in E&O.

By Business Times

Sentul medium-cost flats to be built under Govt programme

PETALING JAYA: Melati Ehsan Holdings Bhd will design and build medium-cost flats in the vicinity of Sentul, after clinching a RM297mil contract from the Government.

In unveiling the location of the project, a source revealed that the company would embark on the project on two separate parcels of land in the area, which would ultimately see more residences being supplied to cater to the growing demand in Kuala Lumpur city and its surrounding area.

The company had announced earlier that it had won the contract to build residential flats for the Housing and Local Government Ministry's People's Housing Programme (PPR), without revealing further details.

“It (Melati Ehsan) will be tasked with the design and building of the flats, while the authorities are still responsible for selling and distributing the units,” the source said.

According to the source, the two pieces of land are currently occupied by squatters, and it would be a resettlement plan (for the people staying there) and the project would provide new residences for eager homeowners.

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: one part is valued at RM82.1mil for the provision of 500 units of flats, and the other is for 1,600 units of flats worth RM215.9mil.

The flats will probably be sold for between RM135,000 and RM164,000 each. They are expected to be completed earliest by 2014, assuming the construction of the 500 and 1,600 units are completed on schedule by 30 and 36 months respectively.

If the flats are sold at the expected prices, they will be categorised as medium-cost flats, which suggests the units will have better design and built-up than the low-cost flats in previous PPR projects.

The source said compared with the old PPR flats, which only provided one parking space for every four units, the new flats would have one parking lot for each unit.

Meanwhile, Melati Ehsan is also busy with a RM1.62bil joint property development project with the Selangor State Development Authority in Kelana Jaya, where it is redeveloping the PKNS Sports Complex.

The 30-year old complex, which includes a field, six tennis courts and a clubhouse, will most likely make way for a sports-themed mixed development with five 35-storey apartment blocks, two 15-storey business complexes, a performing arts centre and an integrated sporting hub.

By The Star

Stylish Bukit Bayu bungalows in Shah Alam designed for growing families

Cosy: A bedroom in the bungalow.

Large families will testify to the fact that even the most spacious-looking home can fail to meet expectations when they eventually move in with their belongings.

Years go by, and it becomes apparent that life would be easier with an extra bathroom here and another bedroom there. And the children will chime in that an added play area would be just great, too.

Bukit Bayu in Section U10 in Shah Alam, nestled next to the Bukit Cherakah Forest Reserve, is everything a family needs as they grow together.

Luxurious five- to six-bedroom bungalows are being built with a children’s retreat and lots of storage space.

Only 133 bungalows are being built by Melati Ehsan Holdings Berhad in two phases and the development will see 65 units completed in the first phase while the remainder will be in phase two.

Melati Ehsan managing director Tan Sri Yap Suan Chee said besides being spacious, Bukit Bayu bungalows were stylish.

“First impressions are important, once inside the main door.

“You will be immediately captivated by the breadth and height, all of which are enhanced by the sweep of a stairway with huge windows that stream in natural lighting,” he said.

He added that the formal living and dining area was an open plan and light-filled, with windows covering almost one wall in the dining room.

Executive director Datuk Tan Hong Ming said in the kitchen, there was space to incorporate a large U-shaped island bench so that a cook could actually serve meals for even the largest gathering of family and friends.

“Storage is also a design priority here, and owners should have no problem accommodating a twin- door refrigerator, an array of built-in cupboards and even a walk-in pantry,” he said.

After the launch of Bukit Bayu by Shah Alam mayor Datuk Mohd Jaafar Mohd Atan recently, reporters were taken on a tour of the show units where up the staircases were five roomy bedrooms.

On the first floor is another family area and five bedrooms. The master bedroom is actually a suite. It has space for two large walk-in wardrobes and a spacious attached bedroom.

In fact, the bathroom is so large its various functions can be physically segregated.

In one portion, a toilet and bidet can be installed, while another part can be used as a shower room.

Other rooms have been styled with practicality in mind.

Yap said Bukit Bayu was a person’s passport to a life enriched by the beauty of nature as the neighbouring forest offered refreshingly crisp, cool air .

Owners of the bungalows will have a guarded concept and enjoy the luxurious clubhouse that has a swimming pool and multipurpose hall.

By The Star

Extreme Equatorial makeover?

Kuala Lumpur: Hotel Equatorial Kuala Lumpur may be torn down under an extreme makeover, reflecting rising competition among hotels as Malaysia's tourism industry grows.

It could also mean that the 38-year-old hotel will be the fourth structure along the busy Jalan Sultan Ismail to be earmarked for rebuilding.

Malaysia wants to triple tourism receipts to RM168 billion in 2020 from last year's figure of RM56.5 billion by attracting 46 per cent more visitors.

Hotel Equatorial will close from April 1 2012.

It is understood that the hotel management had informed its staff a few weeks ago on its plans to temporarily cease operations from March 31 2012.

"We are intending to do a major upgrading exercise that will involve the closure of the hotel," said its general manager Alan Ong.

"The hotel was built and designed for the 1960s and today there is a need to upgrade. (In order) to stay relevant in the business, we have to do the upgrading," Ong said.

Equatorial KL, which opened for business in 1973, was last renovated some eight years ago.

The hotel has a room inventory of 275 and sits on a land covering close to 85,000 sq ft, which according to industry estimates is worth as much as RM250 million.

Hotels have to regularly undergo renovation and refurbishment exercise in order to remain competitive in the market.

Competition is expected to be stiff, with several new hotel openings and extensions announced in the Kuala Lumpur city centre including Grand Hyatt, Impiana KLCC and the Banyan Tree Signatures.

Meanwhile, Ong was unable to say how long the hotel will be closed for upgrading works.

According to sources, it could take up to three years before the hotel will be able to open for business, as there are plans to tear down the building.

Messages left by Business Times at Equatorial KL's corporate office to obtain details on the project were left unreturned.

Nevertheless, a search on the Internet revealed that the owners had submitted and obtained approval as early as last year from Kuala Lumpur City Hall for the proposed makeover.

In February 2011, Business Times quoted Tradewinds Corp Bhd's chairman Tan Sri Megat Najmuddin Megat Khas as saying, "TCB plans to demolish both Komplex Antarabangsa and Crowne Plaza Mutiara Hotel to make way for a new property project".

In September 2011, Kuala Lumpur mayor Tan Sri Ahmad Fuad Ismail said TCB had been granted a development order for Hotel Istana, which is located at the corner of Jalan Sultan Ismail and Jalan Raja Chulan.

However, as at press time, it is still unclear when these buildings will be demolished.

Hotel Equatorial's website states it is located in three major Asia Pacific countries with seven properties in the group.

In Malaysia, the Equatorial hotels are in Penang, Cameron Highlands, Bangi and Malacca.

The properties abroad are in Shanghai, China and Ho Chi Minh in Vietnam.

By Business Times

MRCB plans to build affordable homes: CEO

Malaysian Resources Corporation Bhd plans to build affordable houses in one of its projects to serve the medium-income populace, its chief executive officer Datuk Mohamed Razeek Hussain said today.

He said his property development and investment company supported the government's Projek Perumahan Rumah 1Malaysia as it was an excellent way to help the people who have not achieved the requisite income level to buy high-value properties.

"We are supportive of the housing scheme and plan to include such houses in one of our projects soon. We hope to get approval and assistance from the government," he told reporters after the company's corporate social responsibility event themed

"Promoting Intelligence, Nurturing Talent, Advocating Responsibility" here today.

On another note, Mohamed Razeek said the group had done the soft launch for its two blocks of condominiums at Kuala Lumpur Sentral.

Known as "The Sentral Residences", the project received good public response.

"We've almost sold all the units on the first block and when we opened the second block (for booking), it was a brisk sale," he added.

By Bernama

Companies eyeing job to sell BRDB’s assets

PETALING JAYA: Bandar Raya Developments Bhd (BRDB) has yet to make a decision on the appointment of consultant for the sale of its prime assets but industry sources said companies such as Jones Lang Wootton Malaysia, DTZ and Knight Frank Malaysia could be eyeing the job.

BRDB had on Sept 26 that it would hire an independent international property valuation firm to conduct a tender exercise for the sale of BR Property Holdings Sdn Bhd, which owns the successful Bangsar Shopping Centre and Menara BRDB as well as CapSquare Retail Centre and the Permas Jusco Mall.

This came about after calls urging the company to do so after Ambang Sehati, BRDB's major shareholder with an 18.88% stake, had proposed to buy the prime assets for RM914mil.

Ambang Sehati, the investment vehicle of BRDB chairman Datuk Moiz Jabir Mohamed Ali Moiz, would also be invited to participate in the tender exercise.

BRDB has yet to reply to queries by StarBiz on further developments regarding the tender exercise.

It is also unclear whether the property valuation firm would be appointed directly or after a RFP (request for proposal) to property consultancies.

Sources told StarBiz that the decision might be made at the next BRDB board meeting, of which a date has not been fixed.

Property consultancies contacted by StarBiz said they had not heard of any RFPs from BRDB or further developments regarding the tender exercise.

“BRDB has been very quiet on this matter,” noted one consultant.

By The Star

SPNB to take over Oriental Village?

GEORGE TOWN: Syarikat Prasarana Negara Bhd (SPNB) is in talks with the Langkawi Development Authority (Lada) to take over the operations of the Oriental Village in Teluk Burau on the resort island.

Business Times has learnt that talks on the prospect began last year and a due diligence is ongoing.

Sources said that by taking over the management of the Oriental Village from asset owner Lada, SPNB will be able to promote a greater value-add for its cable car operation, which is located within the Oriental Village compound.

Panorama Langkawi Sdn Bhd (PLSB), a unit of SPNB, operates the cable car service that was introduced in 2003. Its base station is sited within the village.

PLSB chief operating officer Eby Azly Abdullah when contacted, confirmed that the company is in talks with Lada.

"We are talking to Lada on several options," he said, adding that one option could entail profit-sharing with the asset owner.

The Oriental Village, featuring some 50 retail outlets and located at the foothills of Bukit Machinchang, is one of several properties currently managed by Lada's wholly-owned Lada Eco-Tourism Sdn Bhd.

The company also oversees the development and management of the Geopark Hotel Langkawi and Mutiara Burau Bay Resort in Teluk Burau.

In recent times, the condition of the shops at Oriental Village has been a sorry sight for tourists visiting the area.

Apart from having merchandise in most shops that mirror each other, the quality of the goods reportedly have been inferior.

By Business Times

Retailers can bid for KLIA2 space next year

SEPANG: Retailers interested to be part of the new KLIA2, slated to be open end of 2012, can bid for space through two open tenders next month and February next year.

Malaysia Airports Holdings Bhd (MAHB) senior general manager of commercial services Faizah Khairuddin said the tenders would be placed on MAHB website and major newpapers in early December and another one on February 15.

The tender for next month will be open from December 5 to 9.

"We will have the first batch in December and hope to get at least 20 to 30 per cent of the retailers then. The next one will be open in February after Chap Goh Meng celebrations," she said at a press conference after a preview on KLIA2 retail space here, yesterday.

Faizah said KLIA2 will not automatically take in the retailers from the present low cost carrier terminal.

"These retailers would also have to go through the open tender process like the rest," she said.

According to her, the tendering process will be done in two batches because of the holidays in between, including New Year and Chinese New Year.

The bidding process would take between four to six weeks.

"May the best man win and in this case, companies that are outcome-driven would likely be given a chance," she said.

Faizah said the whole tendering process would be completed next July, just in time for the airport's opening, scheduled by the end of next year.

The overall retail space up for grabs at the KLIA2 is 225 outlets with a total of 35200 sq m space.

One operator is allowed not more than five oulets.

"Out of this space, 95 per cent would be for commercial purposes while the rest for upcoming small and medium enterprises," she said.

On the commercial side, Faizah said 50 per cent would be for retail, 40 per cent for food and beverages, and the rest for services.

Retailers interested to bid for the retail space at the new airport, can can go to www.malaysiaairports.com.my or www.klia2.com.my.

By Business Times

IOI unit, Pertama Land end land deal

IOI Corp Bhd’s subsidiary Sri Mayvin Plantation Sdn Bhd and Pertama Land & Development Sdn Bhd have mutually agreed to back out of a sale and purchase agreement that was earlier disputed.

Pertama Land had, vide its letter dated October 25 2011, disputed Sri Mayvin’s termination of the SPA on October 25 2011.

Sri Mayvin had initially agreed to buy 11.9ha of oil plantation land from Pertama Land for RM830 million.

The former terminated the deal with Pertama Land, however, saying that it (Pertama Land) had failed to upkeep and maintain its properties, besides there being discrepancies relating to the properties.

Sri Mayvin will be refunded the RM83million deposit it had put up.

By Business Times

Glomac business booms despite global slowdown

CYBERJAYA: Glomac Bhd, unfazed by the slowdown in global economy, will continue to expand its property development activities in Malaysia.

The company is looking to increase its projects in hand to improve earnings, said its assistant general manager, group corporate communication and marketing, Fara Eliza FD Mansor.

As at July 31, Glomac has a net cash position of RM361.6 million.

"We are increasing our landbank size and plan to launch more medium- to high-end developments. We will go where the market is," she told Business Times in an interview recently.



The company has close to 405 hectares in its pocket with a potential to develop properties worth RM3.8 billion over the next seven years.

Glomac's net profit rose 14.7 per cent to RM17.9 million in the first quarter ended July 31, mainly attributed to strong contribution from previous and ongoing projects.

Revenue for the quarter surged to RM127.83 million, from RM126.31 million a year ago.

Glomac is currently focusing on four projects, namely Glomac Damansara, Mutiara Damansara Residences and Glomac Utama in Petaling Jaya, Selangor, and Glomac Cyberjaya. The projects are worth close to RM2 billion combined.

While the RM1 billion Glomac Damansara has started, the company is aiming to launch the RM250 million Mutiara Damansara Residences and RM400 million Glomac Utama by the end of this year or in early 2012.

For Glomac Cyberjaya, the company is now introducing phase two, comprising 55 units of three to 41/2-storey shop offices worth RM250 million.

"Phase 1, consisting of 63 units of shop offices, was sold out within six months. There is still a lot of demand for the properties," Fara said.

She said the limelight for 2012 will be a yet-to-be-named project in Puchong, comprising mainly residential, valued at around RM1 billion.

"That will be our next flagship project after Glomac Damansara," Fara said.

Glomac had acquired 80ha of leasehold land in Bandar Metro Puchong for RM77 million this year to undertake the development.

By Business Times

MB: We will start affordable home project soon

Deplorable: The dilapidated longhouses in PJS1 near Old Klang Road is located on a rubbish-dumping ground. There is also a drain which has been clogged and now a mosquito-breeding ground.

SELANGOR Mentri Besar Tan Sri Khalid Ibrahim said the woes of the 276 longhouse residents in PJS1 near Old Klang Road will be resolved soon.

He said a meeting with the residents would be held in a week to explain the state’s plan.

Khalid said he was confident that the matter would be resolved at that meeting.

“We have already acquired the property and I think the matter is solved,’’ he said yesterday after attending a green development programme in Shah Alam.

Khalid said the matter took a long time to solve because of disputes involving a school and temple.

“I am sure we can start the affordable home project for the longhouse residents soon,’’ he said.

StarMetro reported yesterday that 276 longhouse residents in PJS1 plan to protest at the office of Khalid if affordable homes are not built in the area.

Block E Buyers action committee chairman M. Sugumaran had said they were unhappy with Khalid for not keeping his word to build the homes.

Khalid had promised to build affordable homes four months ago after the Selangor State Economic Action Council meeting on June 16.

The residents are part of a group of squatters who were moved to PPR Lembah Subang and PJS1 longhouses eight years ago with the offer of low-cost flats. The flats have not been built.

By The Star