Cabinet nod for green guidelines

New township: (From left) Miss Universe Malaysia 2012 Kimberley Ann Estrop- Leggett, Lee, Chor and Tan looking at a residential model during The Star Property Fair 2011 at the Kuala Lumpur Convention Centre Friday.

KUALA LUMPUR: The Cabinet has approved a green neighbourhood and low carbon city framework and assessment system aimed at reducing the nation's carbon emissions.

Housing and Local Government Minister Datuk Seri Chor Chee Heung said the guidelines would bring the country a step closer to achieving the goal of reducing its carbon footprint by 40% by 2020 as announced by Prime Minister Datuk Seri Najib Tun Razak in Copenhagen last year.

“We are going all out to push the guidelines.

“Studies have shown that urbanisation contributes more than 50% of greenhouse gases released into the atmosphere. Our small cities and townships are getting bigger,'' Chor said after launching The Star Property Fair 2011 at the Kuala Lumpur Convention Centre yesterday.

Also present were Star Publications (M) Bhd executive deputy chairman Datuk Vincent Lee and chief events officer Iris Tan.

A Cabinet paper on the guidelines was approved yesterday, said Chor, adding that it was a joint collaboration between his ministry and the Energy, Green Technology and Water Ministry.

The guidelines, which would be distributed to local authorities, would promote 3R (reduce, reuse and recyle) practices as well as other environmental-friendly policies.

“We hope developers will help spur green neighbourhoods by providing more cycling and walking paths to reduce vehicle use.

“The guidelines are not compulsory but it makes good business sense to do it,” he said.

Chor also congratulated The Star for organising the property fair which had not only attracted developers but lifestyle companies as well.

“It is fair to say that The Star Property Fair is by far the largest. Congratulations for a fantastic job.”

On errant developers, Chor reiterated that the amendments to the Housing Development (Control and Licensing Act) 1966 would ensure “fly-by-night” operators are severely dealt with.

The Bill, which is expected to be tabled in Parliament soon, would see errant developers facing criminal charges and jail sentences for abandoning housing projects.

The Star Property Fair 2011 is open from 11am to 7pm and ends tomorrow. Entrance is free.

By The Star

Residents want development to benefit community

KUALA Lumpur mayor Ahmad Fuad Ismail said the Bangsar Seafood Garden restaurant in Jalan Ara Bangsar still has the right to operate until the Court of Appeal hears the case.

Fuad said the developer of One Bangsar, Markibra Services, had procured a stay order and no date had been fixed for the hearing.

The entire stretch along Jalan Ara Bangsar was filled with chic outlets like Sagar Restaurant, House of Tang, Signature Snips Hair Salon, CungDinh Vietnam Restaurant, Saigon, Divino, Zens Korean BBQ and Vincenzo Ristorante Italiano.


No more: Only the signboards are indications of the outlets that once operated in One Bangsar.

About three months ago, the shops slowly started moving out following a court case that arose after the status of the land that was converted from residential to commercial expired in December 2009.

Unhappy residents who had to deal with a host of problems opposed the renewal of the business licences and asked the Kuala Lumpur City Hall (DBKL) to revert the status to residential.

The Markibra Services in turn filed a judicial review to stop the planning permission. However, City Hall won the case and Markibra has filed an appeal.

Only the Bangsar Seafood Garden restaurant is still opearting along the stretch.

Bangsar Baru Residents Association president Datuk George Joseph said it was up to the owner of the land, Eng Lian Enterprise, to propose future developments on the site.

“Of course we hope to have developments that will benefit the community like a carpark. It will definitely reduce the number of cars double parked in the area,” he said.

However George firmly said they would oppose any future plans for restaurants. According to him, restaurants would only increase noise pollution and traffic congestion.


Lone ranger: The Bangsar Seafood Garden Restaurant is the only outlet still operating at One Bangsar.

“We want the place to be developed because leaving it idle may turn the stretch into a dumping ground,” he added.

Bukit Bandaraya Residents Association deputy president M. Ali said they preferred to revert the land status to residential.

“The land should be used for bungalows according to the original plan,” he said.

Eng Lian Enterprise Property Management head Tan Joon Kai said it was premature to have plans for the land.

He added that they would wait for Markibra Services to enlighten them on the status before deciding on the type of development.

Tan also said their company considered the feedback from the residents and business community important in the decision-making process.

“We ultimately must ensure that the land will be used for the greater good of the neighbourhood,” he added.

Representatives from Markriba Services could not be reached for comments.

By The Star

Factors that define the best places to live

PETALING JAYA: The high cost of a property and the relative prestige of the neighbourhood are only two of the factors that define the best places to live for the super-rich.

Depending on personal priorities, elite property buyers will consider a combination of factors when deciding on the best home for themselves or investment. And for the ambitious, there are newer residential enclaves to consider.



According to Henry Butcher Marketing Sdn Bhd chief operating officer Tang Chee Meng, the preferred residential locations in the Klang Valley still relate to well-established and high-priced real estate, namely Damansara Heights, Bukit Tunku/Taman Duta, KLCC, Ampang Hilir/U Thant, Bangsar, and Mont'Kiara.

“Besides pricing, I would consider other factors such as quality of the residential environment, security of the neighbourhood and availability of amenities such as schools, shops, eateries and entertainment outlets as well as accessibility,” pointed out Tang, who has been in the real estate business since 1979.

“The areas mentioned are prestigious locations which have snob appeal,” said the veteran consultant, who himself lives in Damansara Heights.

Is it too expensive now to buy properties in areas like Bukit Tunku, Damansara Heights or even Bangsar?

“Well-heeled locals are still keen on properties in these areas. They are prestigious addresses which command good rentals and enjoy strong potential for capital appreciation due to the scarcity of land for the development of new homes.

“Foreigners, too, tend to buy in established locations and, as such, will still consider these areas.”

However, living in an elitist neighbourhood is not without its share of negative factors.

For one thing, the residents here are mainly well-connected and powerful personalities. Some would not hesitate to be litigious should their property rights be infringed by neighbours, whether knowingly or unknowingly.

Newer residential enclaves such as Mont'Kiara are viewed by certain property investors and agents as being “over-developed”. Despite that, their prices keep going up.

“People have been talking about an oversupply situation in Mont'Kiara for years but new projects have continued to enjoy a good take-up rate in terms of sales. This is due to the perception that Mont'Kiara properties enjoy good capital appreciation. And units can easily be rented out due to its popularity with the expatriate community.

“However, with recent project launches which have large units and are priced at around the RM1,000 per sq ft threshold sales have been sluggish.

“As most Mont'Kiara developments are high-rise condominium projects, population density is much higher than other residential areas such as Ampang, Bangsar and Bandar Utama.”

Apparently, it may take some time for the market to “digest” such units available, provided economic factors remain stable and government regulations do not affect demand adversely.

And for those with not-so-deep pockets, Tang who has witnessed his fair share of property ups and downs in the market picked certain upcoming and promising residential areas as having high potential for property investment.

The “good” areas include Setia Ecopark, Bandar Utama-Mutiara Damansara-Desa ParkCity residential belt and Kemensah Heights.

Similar positive factors also apply to other established residential developments in Tropicana in Petaling Jaya, Sierramas in Sungai Buloh and Country Heights in Kajang.

“Buying into an established and prestigious location cannot go wrong as prices will hold better during a downturn and recover faster,” advised Tang.

“So, the strategy is to go in when the market has started to move up and sell when the price has gone up to a level which will give the investor an attractive gain. Never regret having made less if the prices go up higher as the market could have turned the other way.”

For more of this story, including a table of comparison on the preferred residential locations, log on to StarProperty.my.

By The Star

An oasis up in the skies

Luxurious: The Verve Suites serviced apartments development by Bukit Kiara Properties.

STANDING amid a well-manicured lawn and sipping cocktails under the stars while listening to jazzy tunes, the small gathering of people might feel they were at a resort.

Well, a resort it is not, but it is an oasis in the midst of the urban hustle and bustle of Mont’ Kiara.

The little party of guests would tend to agree that Bukit Kiara Properties had accomplished its mission of creating a stylish space for the contemporary lifestyle of professionals.

Its four blocks of serviced apartments — Viva, Vibe, Vogue and Vox towers — collectively known as the Verve Suites have each been assigned a “living concept.”

The first two towers, sporting the Vertigo and the Hypercubes concepts, were completed in 2009 and 2010 respectively. They have been handed over to the homeowners and are now occupied.

Vogue, the reason for the cocktail do, will be handed over in early 2012.

The showpiece for this tower’s Concentrico living concept, named after the concentric circles of a tree trunk, is set out on the 31st floor. It was also where dinner was served for the guests invited to “experience” the showpiece.

The Gardens of Concentrico features three main layers of a “jungle.”

The top layer is formed by 52 Leopard Trees, the second layer consists of 80 tree ferns and 45 wild water plums, while the last layer is made up of 20 species of low shrubs and ground covers. The amount of soil used for this “jungle in the sky” could fill 75 six-tonne lorries.

At the far corners of this sky lounge, which has a built-up of 6,240sq ft, are platforms called Podium Panorama furnished with hammocks for residents to chill, shoot the breeze or just enjoy the vista.


Fun in the water: Gardens of Concentrico includes a hydro-gym in a heated pool. — Pix courtesy of SC SHEKAR

There is also an open-air theatrette, whimsically named Cinema Paradiso, a mere stroll away.

As if all these are not impressive enough, the designers have achieved a coup of sort by setting up a hydro-gym, the first in a high-rise residential property in Malaysia.

The gym equipment were specially sourced and imported from the UK.

The whole of Vogue Tower has 255 fully furnished one- and two-bedroom suites ranging from 462 to 926sq ft.

Residents have access to all sky lounges in the Verve Suites, including that in the upcoming tower.

The Vertigo sky lounge houses foosball and pool tables, jacuzzi and sauna among other things while Hypercubes features a spa.

The final block, known as Vox Tower and near sold out, is expected to be completed in 2014.

It will have 250 units of 462sq ft to 1,394sq ft, the largest of which will consist of three bedrooms.

Sitting atop them, on the 34th floor, will be a — believe it or not — sky beach!

Preview is open for Vox Tower. For details, visit www.vervesuites.com

By The Star

Unique landscape for condos

A PRE-launch ceremony for the Se terra — boutique homes — and a Night of Appreciation was recently held to thank associates, consultants, bankers and lawyers for its success.

Hosted by property developer Briswood Sdn Bhd, more than 100 guests attended the occasion, which was held at its showroom located along Jalan Masjid in Kayu Ara, Petaling Jaya.

Se terra promises a breathtaking landscape, which is one of its unique selling point.

Sprawled over 0.6ha of land, Se terra consists of low-density leasehold condominiums designed to provide a secured living set in natural surroundings.


Informative: Briswood Sdn Bhd managing director Datuk Kee Cheng Teik (left) talking to potential buyers at Se terra’s pre-launch ceremony.

The living space per unit ranges from 1,813 sq ft to 3,778 sq ft.

Each unit (standard and duplex) has a private lift lobby with the living and dining spaces opening onto a balcony that oversees a beautiful landscape.

The double kitchen area is made for families to spend quality time during mealtimes or for those who love to cook.

One need not incur additional costs for an expensive kitchen cabinet as each unit comes with a fully outfitted kitchen.


Comfortable abode: A place for play and study in the children’s bedroom.

Each unit has four bedrooms — a master bedroom, children’s room, guestroom and maid’s room.

Every bedroom has an attached bathroom with modern fixtures.

The duplex units, which is 3,568 sq ft in size, offers space across two levels. Perched above are the 5,744 sq ft penthouse units.

The entrance leads you to the centre of the penthouse with a living room for unwinding or entertaining, while the dining area overlooks an outdoor garden with water features.

The development is equipped with facilities such as an infinity pool, wading pool, barbeque area, an outdoor gymnasium, children’s playground, a multipurpose hall, parking bays and utility storage areas.

Se terra is located within Bandar Utama with access to Damansara-Puchong, NKVE and Sprint highways.

It is close to 1Utama, Centrepoint, Tropicana City Mall, The Curve, Ikea and Ikano Power Centre.

For those who to love golf, Bandar Utama Golf Course and the Tropicana Golf and Country Club are also nearby.

The smallest unit is priced at RM1.3mil, while units from 3,778 sq ft onwards is priced at RM2mil and above.

Se terra is designed by HMSK Architecture.

The project is expected to be completed by 2013.

By The Star

Three-in-one offering in Puchong for potential buyers

TAMAN Tasik Prima in Puchong will soon become a lively place when The Wharf Residence makes its debut soon.

The residences which comprises of three blocks of waterfront apartments by Bolton Berhad is located on a 6.07ha tract as part of the area’s development plans.

The project has a mix of residential and commercial developments.


Smart offerings: The public taking a closer look at The Wharf Residence.

“The first is the The Wharf Residence comprises three blocks of high-rise towers featuring 1,002 high end apartment units overlooking Tasik Prima, followed by the integrated three-in-one development which has boutique showroom offices, flexi suites a retail mall,” said Bolton Berhad executive director Chan Wing Kwong during the launch of Tower 8 — the first of the three The Wharf Residence’s towers.

The tower features 334 units with a built-up area ranging from 795 sq ft to 1,173 sq ft.

With a starting price of RM275,130, The Wharf Residence also provides owners with facilities such as swimming pools, a gymnasium, a playground, a yoga zone, a jogging track and a garden.

Chan said a unique feature of the apartment units was the introduction of an external storage room on each floor.

“There is one storage room for every unit which you can turn it into a store room,” he added.


Check it out: Bolton Bhd sales general manager Pamela Tan pointing to the available units for the Wharf Residence.

Besides the apartment units, the public also had a sneak peek into the BizWalk comprising 32 units of three-storey boutique showroom offices.

The offices were launched in August last year and had sold out since.

However, Chan said Bolton plans to follow-up the success with the launch of specially-designed flexi suites, a two-in-one commercial offering.

“The flexi suites can be used as an office and a residential space as well.

“You can stay in one and operate your office in the other or you can even rent it out,” said Chan.

As for the retail mall, it has a gross floor area of 506,510 sq ft and some 1,296 parking bays.

When completed, the mall will also see a link bridge from the apartment blocks.

Chan also shared that the mall will also be incorporating green features such as using less energy, less treated water, thus reducing chemical footprint in general.

The Wharf Residence show unit at the Bolton Studio sales gallery in Taman Tasik Prima Puchong is open seven days a week between 9am and 6pm.

For details, call 03-7844 6333/8068 4030.

If you have upcoming projects, property sales previews or launches to highlight, e-mail us at metro@thestar.com.my

By The Star

Dijaya Q3 revenue up 28% on strong sales

KUALA LUMPUR: Dijaya Corp Bhd registered a 28.2% increase in revenue to RM89.2mil for its third quarter ended Sept 30, 2011 from RM62.2mil in the previous corresponding period.

The company attributed this to the strong sales performance and recognition of progress billings from its project launches.

“The increase in revenue and improvement in operational results was mainly due to higher profit margin contributions from its new property launches such as Tropicana Grande golf-fronted condominiums and Casa Tropicana final Block E condominium at Tropicana Golf & Country Resort as well as villas at Tropicana Indah Resort Homes,” it said in a statement Bursa Malaysia.

Due to accounting standards, Dijaya has also made a fair value adjustment on marketable securities of RM22.3mil which had caused it to record a technical net loss of RM12.84mil. Excluding this fair value adjustment, Dijaya had registered an adjusted profit after tax and minority interest (Patmi) of RM9.5mil from RM5.6mil previously.

Meanwhile, year-to-date revenue rose by 14.3% to RM217.5mil from RM190.3mil before. The year-to-date Patmi was RM26.1mil, which represented a RM17.4mil increase from the previous corresponding period’s RM8.7mil.

Dijaya’s CEO Tan Sri Danny Tan Chee Sing expects the company to continue posting improved numbers moving forward based on the current set of results and the good location of the company’s current and upcoming new developments.

“Dijaya now owns sizeable land bank worth RM28bil in GDV spread across the main cities in Peninsular Malaysia to be launched in the near future. Dijaya now has its footprint in central, southern and northern regions, which are the major property development area. With all these projects in the pipeline, we are poised for growth,” Tan said.

By The Star

More than 200 Bungalows left to rot

Nobody’s home: An abandoned unit covered with thick undergrowth next to an occupied residential unit in the Rasah Kemayan township.

The Rasah Kemayan (RK) housing estate has now become a ghost town with more than 200 bungalows left abandoned, some with real estate banners hanging over the gates for years while others are slowly being swallowed by thick undergrowth.

All the bungalows come with huge compounds and some have been renovated extensively into large mansions.

Retiree Luciano Charles De Silva said there were many bungalows, bought by speculators were now not cared for or maintained.

“Some are well-maintained but have been unoccupied for years,’’ said De Silva, who bought a bungalow because of its strategic location and the Rasah Kemayan golf course.

The housing estate’s proximity to KLIA and talks that a new highway to be built to link to the airport were another reason why many opted to buy their retirement homes here.

“However, now with another new town, Bandar Sri Sendayan near Rasah Kemayan would turn this once quiet and peaceful residential housing area into a ghost town.

“More houses are being vacated and people moving out recently for better homes in other well-planned townships,’’ said De Silva.

He said the thick undergrowth had become a home for snakes, monitor lizards and rodents.

And due to the large number of abandoned houses, security has also become a problem with increasing number of thefts.

The residents once pooled their resources to build a two-storey guardhouse at a cost of RM15,000 in view of the increasing number of thefts and burglaries and to help control traffic in the residential area.

However, the guardhouse is also abandoned and there is no control over traffic movement into the area.

By The Star

SP Setia denies London deal

Kuala Lumpur: Property developer SP Setia Bhd rebuffed claims that it has agreed terms with Irish group Real Estate Opportunities to take control of London’s landmark Battersea Power Station and fund a RM27.2 billion redevelopment of the site.

It said the lenders to the site, Lloyds Banking Group plc and the National Asset Management Agency, did not intend to engage further on its preliminary offer in a letter dated November 23 this year.

SP Setia, however, said it “still firmly believes that property development prospects in London are positive”.

“Accordingly, the group will continue to look out for and assess other possibilities to invest, via strategic partnerships and landbanking opportunities,in this exciting market,” it said in a reply to a Bursa Malaysia query yesterday.

By Business Times

SP Setia cancels London project

PETALING JAYA: SP Setia Bhd confirmed that it was in talks with Irish group Real Estate Opportunities (REO) to acquire a stake in the redevelopment of the Battersea Power Station in south London but the deal had fallen through as the creditors of REO had rejected its preliminary offer.

In an announcement to Bursa Malaysia yesterday, SP Setia said the lenders, Lloyds Banking Group Plc (Lloyds) and the National Asset Management Agency (NAMA), had in a letter dated Nov 23, informed SP Setia that they did not intend to engage further on SP Setia's preliminary offer.

The property group said it had on Nov 18 instructed its investment adviser to submit a conditional non-binding preliminary offer to acquire from Lloyds and NAMA, the senior debt facilities and the swap exposure and other related claims in the Battersea Power Station site and its holding company for 262mil (RM1.3bil).

“The preliminary offer was conditional upon satisfactory results from a technical, environmental, financial, corporate, tax and legal due diligence exercise to be carried out on the opportunity, and results of the detailed due diligence being presented to SP Setia's board and shareholders for approval,” it added.

SP Setia said its preliminary offer was made in the ordinary course of the group's activities to always seek out good opportunities in both local and selected international markets to expand its operations.

An official from SP Setia told StarBiz that the group had decided not to pursue the deal or make another offer.

Despite the deal having fallen through, SP Setia said it still believed that property development prospects in London were positive and would continue to look out and assess other possibilities to invest via strategic partnerships and landbanking opportunities there.

“Our recent success in penetrating the competitive Australian property market with the launch of our Fulton Lane project in Melbourne's central business district has also given us the confidence to explore other strategic global cities where the group's branding and strong customer base can be effectively deployed.”

An analyst with a bank-backed brokerage said the redevelopment of the Battersea power station would continue to be challenging given the need to set aside funds to conserve the derelict power station.

“There is a plan to link the site to the London Underground station, of which REO must agree on a 600mil financing terms. It is not certain whether the funding for the London Underground station has been sorted out.

“Plus the presence of a waste transfer station and a cement plant on the river frontage would make the development even more challenging,” he added.

Another analyst said if SP Setia had clinched the deal, it would be a shot in the arm for the group to take its brand to the global market.

“The location of the site in the border of London's Zone 1 and Zone 2 is strategic, given that London is still attracting massive foreign funds to invest in its real estate market.” The analyst said SP Setia could still shop around for other development opportunities in London.

Its healthy financial position with a net gearing ratio of only 0.2 times would afford it the opportunity to leverage on more bank borrowings for its expansion to the United Kingdom, he added.

By The Star

Developers offer houses that comply with Vasthu

HOUSING developers in the country offer over 70% of ready-built houses which comply with Vasthu Sastra (Indian feng shui) and are auspicious for occupancy, said Sunday Star columnist T. Selva.

He said his survey showed that builders were incorporating geomancy values in their construction and many houses were now built on a rectangular or square plot, which was favourable.

“I believe developers are more aware of buyers’ demands to incorporate ancient sciences of construction like Vasthu and feng shui in their designs,” he said, adding that Vasthu was a 5,000-year-old science which focused on harmonious living.

However, Selva noted that problems arose when property owners made alterations and renovations on the built-up area or land to match their convenience and comfort without taking into account the effects to the environment and the dweller.

“Some extensions are favourable and some are not, depending on which sector of the plot is extended or cut,’’ said Selva, who is the author of the Vasthu Sastra Guide book.

He will present a talk titled “How to choose an auspicious property and using pyramids to attact positive energy” at 2pm on Sunday at The Star Property Fair 2011 at the Kuala Lumpur Convention Centre (KLCC). Admission is free.

The talk is among the highlights of Malaysia’s Premier Fair for stylish living, organised by Star Publications (M) Bhd.

The mega event promises an array of new property launches, irresistible package deals and attractive rebates offered by major developers.

Selva said Vasthu was the equivalent of architecture plus a result-oriented science to ensure harmony.

Sharing insights into Vasthu, Selva said that if the north-east corner of the land was cut, it would be regarded as inauspicious and would affect the family growth and ancestry.

“North-east is given a lot of importance in Vasthu because the cosmic rays hit the earth at the north-east corner of the earth,” he noted.

At the talk on Vasthu, Selva will be giving away mini pyramids to attract subtle positive energy to participants.

The nine pyramids embedded in the micro-pyramid are powerful energy enhancers and those having them will enjoy improved dynamism.

The pyramids, imported from India, will be given away to the first 100 participants attending the talk which will also see Selva explaining the science of pyramid power.

“The pyramid has been known from ancient times as a powerful design that connects to energy forces and its shape is identified with healing qualities,” he said.

He said one of the pyramid’s main functions was to remove or recycle stagnated and negative energy and focus on harmonising energies.

“Pyramids are gaining popularity in homes as means of enhancing energy flow, particularly in homes that are governed by dullness.

For details on the fair, call 03-79671388 ext 1165 or 1168.

By The Star

Pavilion REIT expected to raise RM710m from IPO

KUALA LUMPUR: Pavilion Real Estate Investment Trust (REIT), a shopping mall trust part-owned by Qatar Investment Authority, is raising RM710 million in an initial public offering (IPO), two people with knowledge of the matter said.

The company plans to sell units at 90 sen apiece to institutions and at 88 sen to retail investors, said the people, who asked not to be identified as pricing details are private.

Pavilion REIT had marketed the units at 88 sen to 90 sen.

The IPO will be the Southeast Asian nation's fourth biggest this year, after share sales by Bumi Armada Bhd, UOA Development Bhd and MSM Malaysia Bhd.

Pavilion REIT said earlier this month it is seeking acquisitions within the country and throughout Asia.

Pavilion REIT, which is expected to list next month, owns the Pavilion mall and an adjacent office tower in the capital's Bukit Bintang area.

The mall, with a gross floor area of 2.2 million square feet, has an appraised value of RM3.4 billion as of June 1, according to its prospectus, and houses luxury retailers including Bulgari SpA and Prada SpA.

Qatar Investment Authority will be the single largest owner of Pavilion REIT with a 36 per cent stake, according to its pros-pectus.

The trust aims to start trading in Kuala Lumpur on December 7. Pavilion REIT plans to pay out at least 90 per cent of its distributable income on a half-yearly basis from 2012, it said.

From the listing date to December 31 2012, it will distribute 100 per cent of its income.

CIMB Group Holdings Bhd, Malayan Banking Bhd and Credit Suisse Group AG are among managers of the sale. Bloomberg

Pavilion REIT owns the Pavilion mall that has a gross floor area of 2.2 million sq ft and an appraised value of RM3.4 billion as of June 1.

By Business Times

Pavilion REIT IPO oversubscribed

PETALING JAYA: The retail offering of Pavilion Real Estate Investment Trust’s (REIT) initial public offering (IPO) has been oversubscribed by 7.5 times. Total demand for its institutional book, excluding allocation for cornerstone investors, was oversubscribed by about 28 times.

The price for institutional investors was fixed at 90 sen per unit, while the final retail price is 88 sen. The IPO is expected to raise RM710mil.

En route to a listing on Dec 7, Pavilion REIT is issuing 790 million new shares or 26.3% of its total issued units upon listing. This comprises 755 million shares offered to institutional investors, and the rest came under the retail offering.

By The Star

SAAG in talks on RM600mil Tamil Nadu project

PETALING JAYA: SAAG Consolidated (M) Bhd said it is in the final stages of clinching a contract worth more than RM600mil to build houses in the southern Indian state of Tamil Nadu.

In a filing to Bursa Malaysia yesterday, the group said its India-listed subsidiary SAAG RR Infra Ltd is presently in advanced stage of negotiations with the main licensee of the affordable housing project in India which has the rights for the German technology to build 60,000 solar-powered affordable homes per annum for Tamil Nadu.

“SAAG RR has built seven model homes, financed by the main licensee, which are ready to be handed over by the Chief Minister of Tamil Nadu to the underprivileged shortly,” it said, adding that appropriate announcements would be made if and when the project was awarded to SAAG RR.

SAAG RR would have the rights to manufacture, assemble and sell composite panels for the houses.

The Tamil Nadu government is expected to fund the project and construction works are expected to start by year-end, of which about 180,000 rupees (RM11,112) will be allocated for the construction of each house.

By The Star

Pavilion REIT said to raise RM710m IPO

Pavilion Real Estate Investment Trust, a Malaysian shopping mall trust part-owned by Qatar Investment Authority, is raising RM710 million (US$223 million) in an initial public offering, two people with knowledge of the matter said.

The company plans to sell units at 90 sen apiece to institutions and at 88 sen to retail investors, said the people, who asked not to be identified as pricing details are private. Pavilion REIT had marketed the units at 88 sen to 90 sen.

The IPO will be the Southeast Asian nation’s fourth biggest this year, after share sales by Bumi Armada Bhd, UOA Development Bhd. and MSM Malaysia Bhd. Pavilion REIT said earlier this month it’s seeking acquisitions within the country and throughout Asia.

Kuala Lumpur-based Pavilion REIT, which is expected to list next month, owns the Pavilion mall and an adjacent office tower in the capital’s Bukit Bintang area, which Malaysia is developing to rival Singapore’s Orchard Road. The mall, with a gross floor area of 2.2 million square feet, has an appraised value of RM3.4 billion as of June 1, according to its prospectus, and houses luxury retailers including Bulgari SpA and Prada SpA.

Qatar Investment Authority will be the single largest owner of Pavilion REIT with a 36 percent stake, according to its prospectus. The trust aims to start trading in Kuala Lumpur on Dec. 7.

Pavilion REIT plans to pay out at least 90 per cent of its distributable income on a half-yearly basis from 2012, it said. From the listing date to Dec. 31, 2012, it will distribute 100 per cent of its income. CIMB Group Holdings Bhd, Malayan Banking Bhd and Credit Suisse Group AG are among managers of the sale.

By Bloomberg

China to ease property curbs

SHANGHAI: China will likely relax some property market curbs next year due to concerns that slumping prices could hurt economic growth, a prominent Chinese university said in a report.

China has introduced a range of measures aimed at bringing down property prices in the last year, such as bans on buying second homes in some cities, hiking minimum downpayments for buyers and introducing property taxes.

But Beijing-based Renmin University has forecast that the government would likely relax limits on bank lending to the property sector and purchases of new homes in the third quarter of 2012, according to a report published in the state-run China Securities Journal.

Industry officials and analysts are divided over when the government might ease curbs, originally put in place to cool the red-hot property sector after a surge in prices put homes out of the reach of many.

Chinese Premier Wen Jiabao recently dashed hopes of any change in the short term, saying housing prices should return to “reasonable levels”.

But cash-strapped local governments were heavily reliant on revenue from land sales, and the central government would likely intervene to prevent property prices from falling more than 25%, Renmin University said.

Property investment was also a contributor to economic growth, so Beijing might act to help ensure gross domestic product (GDP) growth which created jobs and prevented social unrest remained strong, it said.

The prestigious university's economic research institute forecast annual GDP growth of 9.2% in 2012, against an estimated 9.4% in 2011.

Official data showed the number of major Chinese cities posting a drop in home prices doubled to 34 in October from September, in a sign efforts to cool the country's surging property market are working.

Housing prices in the capital Beijing, commercial hub Shanghai and the southern cities of Guangzhou and Shenzhen among the most speculative markets all fell slightly in October from September, figures showed.

The report said property prices and sales volume were likely to continue to fall through the first quarter of 2012, but it ruled out a large-scale selloff and a hard landing for the economy.

By AFP

52% of London office blocks owned mostly by German and US investors in 2011

LONDON: British investors own less than half the office properties in London city's financial hub, with foreign ownership of towers such as the Gherkin likely to continue, a report said.

Property company Development Securities said that 52% of city office blocks were foreign owned in 2011, up from 8% in 1980, with German and US investors hiking their stakes considerably over that period.

“City offices are perceived to offer quality and transparency, a safe haven for foreign buyers who have in turn deepened liquidity in the market,” chief executive Michael Marx said in the report, Who Owns the City.

IPD figures show property values fell 50% during the global financial meltdown to August 2009, subsequently rebounding 25%, creating a buying opportunity for cash-rich investors such as sovereign wealth funds, pension funds, insurance firms and real-estate investment companies.

“Traditional owners livery companies, institutions, established property companies have experienced a sharp decline in city office ownership,” Development Securities said, noting these investors now held 17% of the office stock, from 29% in 2005.

In their place, German investors hiked their market share to 16%, from 1% in 1980. US investors held 10%, from zero, while Middle East investors weighed in at 6%, from 3%, the survey found.

The 180m tall Gherkin tower, so-called because of its shape and one of the most distinctive in the city, has been part owned by German property behemoth IVG Immobilien since 2007.

Foreign ownership increased during the global financial crisis, Development Securities said, noting the changing dynamics of globalisation and international investment would continue to be reflected in city office ownership.

“Such resilience would appear all the more remarkable in the light of the city's associations with the failures of the international financial system. What offsets the systemic risk in relation to the city's lack of diversification is the exceptional liquidity that characterises its office market,” it said.

The Development Securities survey also showed the changing profile of owners, with a growing trend towards private ownership by high net worth individuals.

In terms of functional ownership, 41% of the office space was owned by companies in the finance, insurance and real estate sectors, and 57% by financial and business services firms.

By Reuters

IJM Land set to launch "Canal City" project

SINGAPORE: IJM Land Bhd, a leading property developer in Malaysia, is set to mount a roadshow to launch the "Canal City" project in the Klang Valley early next year.

Chief executive officer and managing director Datu Soam Heng Choon said:"We are going to launch the "Canal City" in the Klang Valley middle of next year.

"So, we are going on a road show for the launch (of the project) may be by the beginning of the year. "It was called the Canal City last time, but we are going out there (during the roadshow) to give it a rebranding," he told Bernama today.

The project with a gross development value of more than RM10 billion will be sprawled over 800 hectares at the back of the Kota Kemuning and Kota Permai Golf Course in Shah Alam, Selangor.

"The design will be based on the green city concept. It is one of the the first green township that we are developing and the project will be one of the first few big green townships in Malaysia" he added.

Soam said the project, comprising a mixed township of commercial and residential components, would be fully completed within 12 and 15 years.

Touching on the city concept, Soam said a water and canal feature would be incorporated to run through the entire development.

On the probability of looking for investors, Soam said:"Not so much because we already have experience in carrying out township developments.

"We actually have township and niche project developments like "The Light Waterfront Penang" project," he said.

Spread over 60 hectares, the RM5.5 billion iconic waterfront development will comprise residential and commercial components complete with 100 per cent fibre optic infrastructure.

Soam said IJM Land was currently undertaking projects in Penang, Klang Valley, Johor, Sabah and Kuching.

Currently, IJM Land has a landbank exceeding 4,000 hectares with a gross development value of more than RM20 billion to be realised over 20 years.

By Bernama

Malaysia property sector remains buoyant

Despite talk of a recession, the Malaysia property scene is still buoyant with many people wanting to buy homes, especially in the city centre and in Johor.

HomeGuru.com.my country manager Steven Tan said there is a lot of interest among overseas investors to buy homes in Malaysia via the Malaysia My Second Home programme, especially in places like Sabah, Kuala Lumpur and Johor.

“As for Penang, the trend is different as many locals are snapping up properties there, mostly luxury condos,” Tan said in an interview with Business Times.

He added that another emerging trend in the Penang property market was that in recent months, there has been a lot of interest among Singapore investors to snap up heritage buildings on the island.

“You will be surprised that after Malaysians and Singaporeans, the third most visits we get for our website are the Europeans,”
he said.

On HomeGuru’s recently concluded survey, in which some 2,800 people were interviewed on the local property market, Tan said 63 per cent of the respondents felt that properties across the board in Malaysia were expensive.

The survey also revealed that 78 per cent of the respondents felt that bungalows were the most expensive type of property.
Tan added that some 18 per cent of the respondents also indicated that they were planning to invest overseas in the coming months.

HomeGuru is a Singapore company which has been in Malaysia for slightly under a year. Its 11-month-old website has about three million visitors a month, Tan said, adding the Malaysian HomeGuru website has over 10,000 agents with more than 70,000 properties to buy and sell.

HomeGuru is the second most popular property portal in the country, but it holds pole position in three other countries, namely Indonesia, Thailand and Singapore.

By Business Times

Property sector to feel impact from tighter lending, slower sales

PETALING JAYA: The winds buffeting the property industry may become stronger with the introduction of guidelines by Bank Negara to rein in household debt which becomes effective from Jan 1.

RHB Research Institute Sdn Bhd analyst Loong Kok Wen said in a report that these regulations would have an impact on the industry with the high-end segment of the market being more sensitive to regulatory tightening as financing availability gets narrower.

She said the stricter lending rules were likely to result in a 14%-37% decrease in affordability with the impact to be felt from the first half of next year.

The central bank issued guidelines last week in a move to clarify lending practices among financial service providers which included the requirement by banks to make appropriate assessment into prospective borrowers' income after statutory deductions and consider all outstanding debt obligations.

Loong said that although banks were already assessing potential borrowers' net salary in their evaluation process, lending would likely be tighten on home mortgages going forward on worries of rising household debt to gross domestic product (GDP) levels.

She said fundamentals in the market remained weak with the prolonged sovereign debt crisis in the European Union overshadowing the global economic outlook.

“From our recent conversation with developers, potential buyers are indeed taking longer time in their property buying decisions than previously, especially on premium properties. Mass housing will continue to fare better due to pent-up demand,” Loong said.

She added that property sales were likely to taper off (after a 21% growth in 2010) with a growth of 0% to 5% in 2012, given that sales were largely driven by GDP growth.

Loong said the house was maintaining an “underweight” and was still cautious on property stocks although they have recovered in tandem with the temporary rebound in the equity market.

“Our stock pick is selective,” she said, adding that UEM Land was recently upgraded to a “trading buy” and Mah Sing Group Bhd to “market perform”.

Loong expects UEM Land Holdings Bhd to benefit from more oil and gas-related news flow in Iskandar, while IJM Land Bhd's share price could be supported by a potential merger and acquisition angle following the recent offer made by Permodalan Nasional Bhd to SP Setia Bhd.

By The Star