Redevelopment deal of Crag Hotel stalled

GEORGE TOWN: A deal for a developer to redevelop one of the state’s oldest landmarks on Penang Hill — Crag Hotel — appears to have stalled, due to an alleged exclusion of surrounding properties in the hotel’s vicinity.

Business Times has learnt that although Sri Nisuh Sdn Bhd had been initially promised several bungalows adjacent to the historic hotel when the contract was discussed, the said bungalows did not find their way into a draft agreement.

“Three bungalows adjacent to Crag Hotel were promised to be integrated into a memorandum of understanding between the Penang authorities and developer,” a source said.

“However, the said properties were excluded by the State Secretary in the draft agreement.”

In May, the state government announced that Amanresorts International Pte Ltd will run the famous Crag Hotel on Penang Hill, which was one of the earliest hilltop homes and later turned into a hotel in 1929.

The hotel has been in a neglected and derelict state since 1977 after the International School of Penang (better known as Uplands School) vacated the premises and moved to George Town.

The project was reported to have been awarded in April to Sri Nisuh Sdn Bhd and the company was said to be investing US$12 million (RM38.04 million) to finance the project, which was to be completed within 30 to 36 months.

Chief Minister Lim Guan Eng was quoted at the end of May as saying that redevelopment project will take off after an agreement is inked between the developer and the state government two weeks after he made the announcement.

He said the Aman Group would be awarded a long-term contract tenure by the state to manage the property.

Three months ago, Amanresorts’ media communications manager Anjali Nihalchand said that the firm would be forwarding its proposal to the state’s Chief Minister Incorporated on September 5 for final approval.

When contacted yesterday to enquire on the status of the approval sought from the state authorities, Anjali said in an email that there were no current updates as “this is still at its very early stage and we have not got anything further to share at the moment”.

Meanwhile, state-owned Penang Hill Corp director Datuk Lee Kah Choon did not comment on whether approval had been granted as yet to the developer of the proposed project. “This is a state project,” he said in a SMS reply, “and you may wish to check with the State Secretary’s office.”

State Seccretary Datuk Fariz Darus did not respond to an email enquiry from Business Times.

By Business Times

MPSJ to discuss revised development project in Bandar Sunway with residents

The Subang Jaya Municipal Council (MPSJ) will call for a discussion with residents to address the issue of a proposed revision for a development project in PJS 7, Bandar Sunway.

MPSJ president Datuk Asmawi Kasbi said the details of the discussion would be decided by the MPSJ’s Urban Planning Department, but it was tentatively scheduled for January next year.

“Developer Ceria Pujangga Sdn Bhd had submitted an application to revise the planning permission for the layout plan for the project,” he said.

“Their proposal is to revise the residential units from apartments to smaller sized Soho units. In principle, the MPSJ will still retain the plot ratio of five.”

The developer had submitted an application to revise the layout plan for two multi-storey blocks by increasing the number of residential units.

According to the minutes of the MPSJ’s One-Stop Centre Committee’s meeting, the proposed revision would have 629 Soho units compared with 166 service apartments at one block, and 332 service apartments compared with 166 service apartments at another block.

Councillor R. Rajiv highlighted the issue at the MPSJ full board meeting, citing residents’ concerns of the expected increase in traffic should the revised project be approved.

He suggested that MPSJ delay the approval for the application to revise the project, pending a discussion with residents to address their concerns.

Councillor K. Arumugam, who sits in the MPSJ’s One-Stop Centre Committee, said construction for the project had commenced with one block having completed its foundation process.

Asmawi explained that the developer probably wanted to revise the project due to its proximity to Taylor’s College, hence the revision to cater to the student population.

“The MPSJ will call for a discussion with the residents and explain about the revision,” he said.

“From there, a decision will be made as to whether to allow the project to continue or bring the matter to the State Planning Committee.” On the status of approval for the project, Asmawi said it remains status quo as per the originally approved plan.

By The Star

SP Setia wins land tender in Singapore

Property developer SP Setia Bhd has won a tender bid of an 18,700sqm site along Chestnut Avenue, Singapore, for S$180 million (RM437.4 million).

"The Chestnut Avenue site has a potential development value of RM1.1 billion and a maximum allowable gross floor area of 39,270sqm," the company said in a statement today.

The land tender represents SP Setia's second foray into the Singaporean property market following its acquisition of a freehold development along Woodsville Close in April.

The group's maiden project in at Woodsville Close is expected to be launched in a few months' time followed by the proposed launch of the Chestnut Avenue site by end-2012.

In the statement, SP Setia President and Chief Executive Officer Tan Sri Liew Kee Sin said the land tender provided the group with an extremely rare and excellent opportunity to showcase its core and multiple award-winning development expertise of building eco-brand sanctuaries in a lush green neighbourhood.

"We are very excited about this site which is next to the Zhenghua Park with nearby Bukit Timah Nature Reserve and Bukit Batok Nature Park offering scenic views and recreation," he said.

By Bernama

LBS Bina reaps higher 9-month revenue

LBS Bina Group Bhd has chalked up higher revenue and pre-tax profit for the nine-month period ended Sept 30, 2011 of about RM302 million and RM46 million, respectively.

This represents 59 per cent improvement in revenue and 2113 per cent pre-tax profit in the same period last year, the company said in a statement.

For the current quarter under review, the group earned RM125 million revenue and RM16 million pre-tax profit, respectively.

"This represents a 57 per cent improvement in revenue and 230 per cent rise in pre-tax profit in the same quarter last year," it said.

The company attributed the better growth to its ongoing projects with good take-up rates such as D’Island Residence in Puchong, Topaz III, Ivory Residences I & II, Indigo Homes and Lavender II in Bandar Saujana Putra.

Other commercial and industrial projects such as the Tasik Perdana Industrial Park in Puchong and Saujana Business Park in Bandar Saujana Putra also contributed to the company's good showing in the third quarter.

By Bernama

Singapore private resale home prices remain flat

SINGAPORE: Resale prices of private homes rose a touch last month, reversing a slight dip in September, but the overall trend suggests a period of flat values.

The new Singapore Residential Price Index (SRPI) flash figures out yesterday showed that prices rose 0.9% last month, rallying from a 0.1% dip in September. The overall SRPI which tracks a basket of completed non-landed projects points to a cautious market, with monthly price movements mostly fluctuating within a range of just 1% or less this year.

Prices of centrally located homes, excluding small apartments of less than 500 sq ft, posted a gain of 1% last month compared with the 0.4% dip in September. Non-central area values rose 0.8%, building on September's 0.1% increase. Prices for small apartments inched back 0.9% after a 3.5% drop in September.

Experts offered various reasons for the trends seen in the SRPI index, which is compiled by the National University of Singapore.

DTZ head of Asia-Pacific research Chua Chor Hoon noted that the index's ups and downs could be due to its nature as a monthly snapshot, and there were fewer caveats lodged in October.

Chesterton Suntec International research head Colin Tan said the fluctuation could be due to prices reaching a turning point.

“The underlying trend is still up ever so slightly. This is to be expected as there is still positive economic growth,” he added, suggesting that there could be a to-and-fro between the HDB resale and private resale mass market segments.

By The Straits Times

Retail rents jump 32% in Melbourne

SYDNEY: Retail rents in Melbourne surged 32.3% in the year to September, the third fastest growing market behind Hong Kong and Beijing, fuelled by international tenants tapping the market, said property services firm CBRE.

Against the backdrop of its relatively healthy economy, Australia has lured a number of high-profile international retail brands.

Zara, owned by the world's biggest fashion retailer Inditex SA, opened stores in Melbourne and Sydney this year, while UK fashion retailer Topshop is opening its store in Melbourne next month.

In the third quarter this year, Sydney was the third most expensive retail market globally and Melbourne ranked eighth, while New York retained the top spot to be the world's expensive shopping destination, CBRE said.

Still, CBRE expects Australian markets to slip down the rankings next year partly due to the record levels of outbound tourism and increasing labour and utility costs.

Globally, total retail rents edged down 0.6% quarter-on-quarter in the third quarter, with rents in the Americas dropping 2% while those in the Asia-Pacific, Europe, the Middle East and Africa regions remained flat, according to CBRE.

By Reuters

HK plans to get tough with errant developers

HONG KONG: Hong Kong has proposed a new law that will slap fines and jail terms on developers that mislead buyers of new homes.

The government yesterday kicked off a two-month consultation period on the new law, which it hopes to introduce to the Legislative Council in the first quarter of next year.

“There are consumer protections in other areas, and there should be similar protections on selling properties,” Eva Cheng, the secretary for transport and housing, said as she called for improved transparency, as she unveiled the proposed law. “It has to be done, and there is never a better time.”

Cheng said the current slump in property prices in Hong Kong did not affect the government's motivation to put new rules in place. A steering committee has been working on the rule changes over the past year. The new law would govern all first-hand projects, whether completed or sold off-plan.

The maximum penalty for misleading the public would be a fine of HK$5mil and seven years in prison. Minor breaches would be punished by a fine of around HK$100,000.

Under the proposed rules, developers would have to make a sales brochure on each property available at least seven days before sales begin. The brochure would list the property's address and the neighbourhood it is in. The brochure would also have to provide the saleable area of the property, and would not be allowed to contain artist's impressions of the development.

Residential property in Hong Kong has traditionally been priced and promoted based on gross floor area, not the net area. But consumers have complained about misleading practices from developers, who often include an apportionment of public areas such as lift lobbies, electricity plants and clubhouses in the gross floor area of a flat.

Cheng admitted that current legislation on new-home sales was insufficient.

“We agree the current measures are not sufficient,” she said, adding that the new rules were a top priority for her bureau in the coming year.

“The public is rightly concerned about the sale of first-hand properties,” Cheng said.

The saleable area is the floor area of the residential property itself, including any verandah or utility platform, but excluding bay windows and public parts of a development.

Developers would also be required to provide a price list for the development at least three calendar days before it goes on sale. With the government cracking down on property speculation in Hong Kong, transactions have stalled and prices weakened.

Edward Farrelly, the director of research for Hong Kong, Macau and Taiwan at brokerage CBRE, expects residential prices to fall 20% over the next year.

The new rules would have an impact, he said. “I think there's a lot of good in getting more transparency into the market,” he said. “It remains to be seen how the secondary market responds.”

New home prices would likely rise as a result of developers building extra costs into their baseline price, Farrelly said. But they may not be able to push through that kind of increase in the current market.

“Developers will try to resist a major hit on their margin,” Farrelly said. “However, if the market is faced with a downturn, they may have to accept lower margins.”

Andrew Lawrence, the Hong Kong property analyst at Barclays Capital, has forecast a decline of 25% to 30% in Hong Kong property prices, assuming the former British colony pulls off a soft landing. The drop would rise to 35% to 45% in case of a hard landing, Lawrence predicts.

His favorite pick in the sector is Cheung Kong, run by Hong Kong tycoon Li Ka-shing, since the company has been deleveraging its balance sheet over the past 24 months.

That should allow it to buy assets at the bottom of the cycle, Lawrence said. Cheung Kong is Hong Kong's second largest developer by market capitalisation, behind Sun Hung Kai Properties.

By contrast, Sun Hung Kai, the world's second biggest developer by market capitalisation, was relatively highly geared, Lawrence said. It and Henderson Land had the potential to need to issue fresh equity in the future, he said.

By Reuters

Atria SOFO Suites popular with buyers

Bustling: The special preview and launch of Atria SOFO suites attracted a lot of buyers.

DEVELOPER of the Atria@Damansara, OSK Property Holdings Bhd, hit the ground running when its Atria SOFO Suites were sold out just after its launch recently.

The 392 SOFO (small office flexible office) units are part of the 2.23ha freehold mixed development project replacing the Atria shopping centre.

Scheduled to complete in 2014, the project also features a shopping gallery and entertainment facilities.

Housed in two 16-storey towers above the retail floors, its built-up size ranges from 488 sq ft to 1,343 sq ft. Depending on the size, each unit is priced from RM360,800 to RM1mil.

Some of the unique selling points of the SOFO units are their modular design for better space planning, high ceilings at approximately 2.8m, vertical void for better ventilation and garden terraces on selected floors.

Company director Ong Ju Xing said the development complemented the mature neighbourhood very well as it catered to the middle and upper class segments.

He added that tenants from the former Atria shopping centre had also expressed interest in the new shopping gallery.

“We believe the development project will cater and complement the mature and affluent township of Damansara Jaya,” he said during the launch.

The project has a gross development value of close to RM1bil.

For details, visit www.atria.com.my

By The Star

UEM Land sets RM3b sales target

UEM Land CEO says the company is optimistic on hitting the property sales target.

KUALA LUMPUR: UEM Land Holdings Bhd, the country's biggest property player by market capitalisation, aims to sell RM3 billion worth of properties next year, an increase of 40 per cent from this year.

Managing director and chief executive officer Datuk Wan Abdullah Wan Ibrahim said the company was optimistic on hitting the sales target.

"We are confident as we have the right products to offer in the market. We are close to achieving this year's sales target of RM2.2 billion," said Wan Abdullah.

The merger with Sunrise Bhd has also raised UEM Land's profile, given the former's expertise in high-rise integrated developments and branding.

For the year ended Dec 31, 2010, UEM Land posted a net profit of RM194.5 million on a revenue of RM469.7 million.

Maybank Investment Bank expects the company to record a strong 37 per cent growth in net profit in 2011, mainly due to the consolidation of Sunrise's earnings.

Wan Abdullah said UEM Land had launched projects worth close to RM11 billion in the past four years and RM10 billion of that would be realised over the next few years.

"We have projects worth RM34 billion to be launched over the next several years," he said after unveiling the RM1.3 billion Angkasa Raya, Sunrise's new landmark project in the Kuala Lumpur city centre, last Tuesday.

UEM Land is the property arm of UEM Group, which owns 69.1 per cent of the company. UEM Group, in turn, is wholly owned by Khazanah Nasional Bhd.

The company became the biggest property player on Bursa Malaysia after buying Sunrise earlier this year. It now has a market capitalisation of about RM11 billion.

UEM Land is currently developing Nusajaya, one of the five flagship zones of Iskandar Malaysia in Johor.

Nusajaya spans 9,662ha, with UEM Land owning 4,161ha that are under various stages of development.

UEM Land also has projects in Bangi, Cyberjaya, Kajang and Mont'Kiara.

By Business Times

CapitaLand may place China projects into Reit

SINGAPORE: CapitaLand Ltd, South-East Asia's largest property developer, may place its US$5.3bil projects in China into a real estate investment trust (Reit), The Straits Times reported yesterday, quoting a senior executive of the company.

CapitaLand chief operating officer Lim Ming Yan said should the company decide to do that, the plan would not happen in the near future because five out of seven of its projects, under its Raffles City brand, in China were still under development, according to the report.

“That's always an option, obviously, but you have to wait for the right market timing. I think it's still too early. We have two operating Raffles City (projects) in China, the other five are still under development,” Lim said.

CapitaLand, 40%-owned by Singapore state investor Temasek Holdings, said the projects, with a total commercial floor area of more than 2.1 million sq m, were expected to be worth S$7bil (US$5.33bil) in total upon completion, the report said.

Lim also said the company was looking to start a few new private-equity funds, but did not give further details, it said.

CapitaLand was not immediately available for comment.

By Reuters

China to maintain curbs on property market

BEIJING: China will maintain restrictions on the property market, vice-premier Li Keqiang has said, despite growing speculation that curbs could be eased to prevent a damaging slump in prices.

Real estate sales and prices have been falling nationwide due to tough restrictions on purchases and bank lending, fuelling fears that the market could collapse and send debt-laden property developers to the wall.

China’s property market was “in a key stage” and restrictions needed to stay in place to “promote the healthy development” of the sector, the official Xinhua news agency quoted Li as saying on Sunday.

“We must maintain policies to prevent property prices from rising overly fast and further consolidate the results of the controls,” Li said.

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

A surge in bank lending in recent years has fuelled investment in the real estate sector and pushed property prices out of the reach of many ordinary Chinese, angering people struggling to buy their first home.

The government would maintain restrictions and step up construction of low-cost housing to “satisfy the multiple and diversified housing needs of the public,” Li said.

Li’s remarks echoed those of Chinese Premier Wen Jiabao, who recently said house prices should return to “reasonable levels” before policies were eased.

Renmin University in Beijing said last week it expected the government to relax some property market curbs next year due to concerns that slumping prices could hurt growth in the world’s second largest economy.

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%, it said in a report.

Property investment was also a contributor to economic growth, so Beijing might act to help ensure gross domestic product growth – which creates jobs and prevents social unrest – remained strong, it said.

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.

By AFP

Influx of office space in Klang Valley worsens oversupply situation

KUALA LUMPUR: An influx of office space in the Klang Valley is putting a downward pressure on yields.

Property consultants said the entry of more office space was making the oversupply situation worse.

However, they said the situation could be remedied should the economy perform better, thus keeping demand afloat.

“In certain areas, yields will be pressured downward because of the glut situation. But this is also highly dependent on the location of the offices. Those located in prime areas will have less chance of coming under yield pressure,” DTZ Debenham Tie Lung executive director Brian Koh told StarBiz.

Khong & Jaafar managing director Elvin Fernandez said that the slightly higher vacancies this time around was “not too abnormal a situation”.

“The thing about property cycle is that there can be a glut today but this oversupply condition can be offset if demand returns. I do not view it as being serious,

“However, there could be a lot more supply that would flood the office space sector in the medium to long term,” he said.

There were 20 million sq ft of vacant space in the Klang Valley, 22.5 million sq ft of office space under construction and 25 million sq ft which had been approved for construction.

The Government recently earmarked several areas for commercial development such as the KL International Financial District in Jalan Tun Razak, the 100-storey Warisan Merdeka, the Sungai Besi military airport and the Rubber Research Institute land in Sungai Buloh which are expected to come onstream within the next 10 years.

Meanwhile, a report by CB Richard Ellis released earlier this month revealed that office yields in Kuala Lumpur prime area had been flat from 2005 until 2011, ranging from a low of 6.25% to a high of 6.75% (see chart).

The report also showed the office space vacancy rate in the Klang Valley was under 13% on an average basis, which consultants said could rise once new space came in with the completion of several mega projects.

“With all the large-scale development projects coming in, we are looking at a potential oversupply situation but if the economy does exceptionally well despite the problems in the eurozone, this problem would ebb,” said Koh.

Vacancies had risen during the 2008 global financial crisis in prime office spaces and rental rates had been on a slight decline.

The prevalent trend among corporates was to move their bases away from the city centre into newer office buildings within other established suburbs such as Petaling Jaya and Klang as many of the workers lived in these suburbs.

“After the My Rail Transit has been completed, office development would focus back to the city centre as long as they are affordable and corporates can make a decent profit even after paying off these leases. I expect this trend to reverse and that Kuala Lumpur will remain at the primacy of development in the Klang Valley,” Fernandez said.

By The Star

Amphil to start sale of high-end Rimbun condos

Lush greenery: An artist’s impression of Amphil’s Rimbun condominium.

It’s optimistic of take-up for high-end, green condo

PETALING JAYA: P. K. Poh, the chief executive officer and director of relatively new boutique developer Amphil Corp Sdn Bhd, is a perfectionist.

The company will start selling its maiden project Rimbun, a “green” high-end condominium project, next month. However, Poh is still unsatisfied with the number of green features being offered as he feels there should be more.


Poh: ‘It’s not just about paying lip service.’

To be located in Jalan Ampang Hilir, behind the Great Eastern Mall in Kuala Lumpur, there will only be 56 units with prices ranging from RM1,000 to RM1,200 per sq ft. With a gross domestic value of RM200mil, the 17-floor Rimbun comprises 28 units with a built-up area of 3,500 sq ft and 26 units with a built-up area of 4,500 sq ft.

There will also be two triplex penthouses with built-up space of 18,000 sq ft. Poh said Amphil would retain one of the penthouses.

“We have not fixed the price for the penthouse and will probably offer it based on negotiation basis. Seeing as there will only be one owner, we give them the flexibility to redesign it.”

Poh said Rimbun was targeted at individuals in their mid-forties and onwards.

“These are the people who have travelled the world, stayed in the best hotels, are currently living in large, luxurious houses and whose children have flown the coop, locally or overseas.

“They may now prefer to move from houses to a more secure condominium unit that is at least 3,500 sq ft, with high-tech smart home systems and broadband connectivity. Anything smaller in size will not be comfortable for them as they are used to a spacious environment,” he said.

Poh said he was optimistic of the potential take-up for Rimbun.

“Of course, we don't expect it to be totally sold out in a week. But we don't want it to be that way as well. We want people to understand and appreciate what we're offering.

“Rimbun is just minutes away from all the excitement in the KLCC vicinity with all the dining, shopping, entertainment and commercial outlets. Yet, it does not have the noise and cramped conditions of city living.

“Our access is via tree-lined avenues and we are surrounded by a polo club, a golf club, parks, lakes, top medical centres, a number of international schools and so on. We call it the best of both worlds,” he said.

Poh said Rimbun would be marketed on a “personalised” basis. “Once they have expressed an interest in our units, all they have to do is fill in their details on our website and we will meet them personally.”

The name Rimbun, which means “lush, leafy greenery,” is matched by a plethora green features that will be incorporated into the building.

The environment-friendly features include solar photovoltaic panels, rain water harvesting system, aerated concrete blocks, high internal ceilings, high performance glass, low volatile organic compounds paint, green label fittings, energy-efficient lighting, titanium dioxide coating, motion sensors, energy-efficient lifts, recycling bins, non-chemical swimming pool, herb garden, drip irrigation with rain sensor, naturally ventilated porch and terrace, recycled rubber humps, hybrid vehicles car park and fume extract sensors.

There will be more features but right now, Poh prefers to keep them under wraps for competitive reasons.

Rimbun has also achieved the internationally recognised green-mark gold plus provisional certification from the Building and Construction Authority, Singapore.

One of the biggest challenges leading up to full construction of the building was for Amphil to ensure that it complied with the dictates of Conquas, which is Singapore's construction quality assessment body, said Poh. The project is slated for completion in the third quarter of 2014.

Poh said that the company did not decide to go green in a big way just because it felt like the “in” thing to do.

“With all the environmental degradation and global warming that are going on, we felt that we needed to build something sustainable.

“It is said that buildings contribute 40% to the total carbon emissions, which makes developing a truly green building a heavy responsibility and it behooves us to ensure that our carbon footprint is reduced as much as possible,” he said.

Poh said it was uncommon for a typical condominium project in Malaysia to have so many green features incorporated into its structure. “This makes Rimbun stand out from the rest.

“A developer may incorporate a number of green features over a range of projects but never so many into just one.

“It's not just about paying lip service. Ultimately, it's our residents who will benefit. We want to engage our residents long after the project has been completed.”

Amphil was set up in 2007 and spearheaded by Poh, who has 30-odd years of experience in the property market. He is also a director and adviser for Tradewinds Corp Bhd.

Poh said Amphil comprised “a very small team of people” that was supported by a strong group of consultants and engineers with years of experience.

The company is solely focusing on Rimbun but is open to potential joint ventures for future projects.

By The Star

Tan brothers look to 'conquer' Penang

KUALA LUMPUR: For a while now, there has been speculation about who would partner Ivory Properties Bhd in its multi-billion ringgit Bayan Mutiara project in Penang.

That was ended when it roped in Dijaya Corp Bhd. They now plan to build residential and commercial properties on the land, estimated to generate sales of some RM10 billion.

This is not their first tie-up. Within the Batu Ferringi tourism belt, Dijaya has a joint-venture project called "10 Island Resort" with Ivory.

In Bukit Mertajam, Dijaya has a mixed development project dubbed Aston Villa, in which Ivory is the turnkey developer.

But that partnership has overshadowed an interesting fact. Penang has now seen the entry of two highly successful businessmen and both happen to be brothers.

Dijaya is controlled by Tan Sri Danny Tan Chee Sing, the younger brother of Berjaya Corp Bhd founder and chairman Tan Sri Vincent Tan Chee Yioun.

Barely three months ago, the senior Tan made a comeback to Penang as a property developer after a hiatus of nearly two decades.

The Berjaya Group - via Berjaya Land Development Sdn Bhd - signed a deal to buy 22.8ha of prime freehold land within the Penang Turf Club for RM459 million.

At the signing ceremony in Penang, Vincent did not mince his words in expressing his displeasure with the previous state government.

Vincent's approval of the current state administration is a strong signal to other developers that the island state has plenty of potential.

And this probably explains Danny's continued interest.

The latest alliance with Ivory is a very big undertaking and one which will ensure its presence in the state for many years to come.

Danny, the man behind Petaling Jaya's Tropicana Golf and Country Resort, will have his hands full with the latest venture. As for Vincent, he did not discount the possibility of enlarging Berjaya Group's footprint in Penang.

Together, the Tan brothers will be a force to be reckoned with in Penang.

By Business Times

LBS has land-bank with GDV of RM9bil, wants more land

Ongoing project: Lim looking at a model of the D’Island Residence project in Puchong which has a GDV of RM3.5bil.

PETALING JAYA: LBS Bina Group Bhd is looking at a few avenues to raise funds to finance new land acquisitions for its projects.

Managing director Lim Hock San said the options included internal funds, bank financing and private placement.

“We are still in the assessment process and nothing has been firmed up yet. An announcement will be made if a plan has been finalised,” he told StarBiz.

According to Lim, LBS is currently studying a few proposals on possible land acquisitions to expand its landbank.

LBS currently has a land-bank of about 2,300 acres worth an estimated gross development value (GDV) of RM9.1bil.

Some 46% of its land-bank, or 1,071 acres, is in Selangor, while those in Johor make up 25% of its land-bank (574 acres), Perak 18% (406 acres), and Pahang 3% (70 acres). It also has 197 acres in China.

Its ongoing projects include D'Island Residence on 175 acres in Puchong comprising 237 super-link houses, 298 semi-detached units, 148 bungalows and 352 condominiums.

The project with a GDVof RM3.5bil will also have two blocks of commercial units. Its other flagship development is Bandar Saujana Putra that spans over 835 acres in Selangor.

The township launched in February 2003 has a GDV of RM3bil.

LBS also has projects in Cameron Highlands and Bandar Putera Indah in Batu Pahat, Johor.

In Cameron Highlands, LBS is the developer with the largest market share and the company intends to add land-bank there to cement its leadership position.

According to Lim, D'Island Residence will be the biggest growth driver contributing to 41% of its project GDV for the current financial year ending Dec 31, while contribution from Bandar Saujana Putra is expected to make up 36%.

LBS is targeting sales of RM650mil this year and RM800mil in 2012.

As of Nov 20, it had recorded sales of RM604mil. It also had unbilled sales of RM639mil as of Nov 15.

Lim said for the year to-date, the company had launched 1,295 property units worth a GDV of some RM630mil.

Next year, there will be 17 project launches comprising 2,085 units with a GDV of RM1.4bil.

The sales target for FY12 is RM800mil.

OSK Research said in a recent report that LBS Bina should be able to record decent revenue growth over the next few years since it had moved into the mid to high-end market segments from the low to medium-end segments.

The growth in revenue was underpinned by strong unbilled sales and take-up rate for its recent launches.

“To achieve its sales target, LBS plans to launch more than RM1bil worth of projects for this year, with its flagship Bandar Saujana Putra to account for about 45% of the value of the launches,” the report added.

The research house said the company's decision to move up the value chain in the residential market and re-position itself to focus on medium to high-end projects had enabled it to record over 70% year-on-year growth and make a return to the black with profit after tax and minority interests of RM16.5mil in FY10.

It said the unique concept incorporated in the D'Island project contributed to the strong take-up rate, and the project should provide a strong foundation for LBS to further strengthen its position in the high-end market segment.

As for the Cameron Highlands and Batu Pahat projects, although the market size in those areas was rather limited, having a presence there should be able to provide the right balance for LBS through geographical and demographic diversification.

By The Star

techpark@enstek expects to draw more foreign biotech firms

KUALA LUMPUR: TH Properties Sdn Bhd expects more foreign biotechnology companies seeking expansion to set up shop at techpark@enstek in Sepang, Selangor.

techpark@enstek is the biotech hub at Bandar Enstek, TH Properties's ongoing 2,046ha integrated township development in Sepang.

So far, Phase 1 of techpark@enstek has attracted 21 companies with a combined investments exceeding RM1 billion.

TH Properties group managing director and chief executive officer Datuk Roszali Othman said the company expects to ink agreements with three more companies by early next year.

"They are serious in expanding their operations and are targeting our biotech hub because of the facilities we provide and its close proximity to the airport," he told Business Times in an interview recently.

Roszali said that there are more enquiries now from local and foreign parties on available land at techpark@enstek.

"We have 30ha remaining under Phase 1 and this will be fully taken up when the three companies come in. We expect to launch Phase 2, which will have 160ha of land valued at around RM400 million, a year from now," he said.

Bandar Enstek is located nearby the Sepang F1 Circuit and the Kuala Lumpur International Airport.

The township comprises four main components, namely residential, a commercial hub, institutional zones and techpark@enstek.

Since its inception in 1999, the township has attracted investments of more than RM2 billion from government bodies and the corporate sector.

"We are planning more recreational facilities at the whole of Bandar Enstek. We want to get more profits. As the township matures, we want to rake in high margins," he said.

By Business Times

TH Properties hungry for more infrastructure jobs

TH Properties is targeting private finance initiative projects under the Economic Transformation Programme.

TH Properties Sdn Bhd, the property arm of pilgrims fund management institution Lembaga Tabung Haji, will take on more infrastructure projects in Malaysia to expand the company.



Group managing director and chief executive officer Datuk Roszali Othman said the company has about RM1 billion worth of construction jobs in hand and this is expected to increase next year.

TH Properties is targeting private finance initiative projects under the Economic Transformation Programme.

It expects to conclude several deals with the respective government agencies by early next year.

"We are looking into the bigger role now, especially to drive up our construction activities. We have very low gearing and substantial cash in TH Properties to move up a notch," he told Business Times in an interview recently.

Roszali said if the need arises, TH Properties will raise funds through a bond sale, among others.

TH Properties is involved in property development, construction and facilities management.

Its ongoing construction contracts include a RM400 million job to develop a complex in Putrajaya for the Department of Islamic Development Malaysia.

TH Properties is also involved in Tabung Haji's integrated Haj Pilgrims Complex development at the Kuala Lumpur International Airport, besides carrying out its own two property development projects in the Klang Valley.

The two projects are the RM9.2 billion Bandar Enstek township in Sepang and a residential project in Keramat, worth RM700 million.

TH Properties will launch several new phases at Bandar Enstek and the project in Keramat next year.

"What we intend to do is to grow all our businesses. It is a positive move forward," Roszali said.

By Business Times

Comments from fair visitors

Said NTV7 news anchor Sheahnee Iman Lee, “This is my first time attending the Star Property Fair. There are a variety of projects showcased by top developers."

Currently staying in a condominium in Shah Alam, Lee is looking for landed property with a built-up area of 325sq m (3,500sq ft) within the Klang Valley.

“I’m keeping my options open and hope to find a house that is spacious and convenient for me and my husband to travel to and from work," said Lee, who is expecting her second child.

Penangite Chin Yoon Ming, 29, was looking to buy a high-rise property near the Second-Link in Penang. “I’m looking for a three-bedroom condominium. My budget is around RM500,000."

This was Chin’s first time at the fair and he hoped that there will be more mid-range properties showcased in the next property fair.

Electrical engineer Laurence Xin from China has been staying in Malaysia for one-and-a-half years and was looking for a condominium unit within Mont' Kiara.

“My main priority is security. I want a place with good security,” said Xin. He was shopping for a condominium unit that was at least 279sq m (3,000sq ft) with a minimum of three bedrooms.



Touted as one of the first luxurious condominium developments in the Klang Valley overlooking a golf course, the Tropicana Grande project was one of the developments promoted at the Dijaya Corporation Bhd booth.

Located in Persiaran Tropicana, the Tropicana Grande development boasts a total of four blocks with only two units per floor – ensuring privacy and exclusivity.

With a total of 328 units, the most popular layout choices among the buyers were the "smaller" units, ranging from 212sq m (2,283sq ft) to 254sq m (2,733sq ft). Prices range from RM1.4mil to RM1.9mil.

For buyers with larger families, they can opt for the more spacious units that offer a built-up space from 308sq m (3,311sq ft) to 341sq m (3,666sq ft). Prices for these units start from RM2.4mil.

By The Star

Chinese developer livid at Iceland’s rejection of resort

Huang: ‘You can come and buy a house, and you can emigrate here and bring your riches with you, or you can buy my luxury goods, but if you want to touch my natural resources, then I’m sorry, I won’t let you.’ — AFP

BEIJING: A multi-millionaire Chinese developer is livid at Iceland’s rejection of his plan to build a sprawling resort, saying it reveals Western “hypocrisy and deep prejudice”.

Foreigners also wrongly assumed Chinese companies automatically had ties to China’s military, Huang Nubo said in comments published in Chinese media yesterday.

The Iceland government on Friday rejected a bid by Huang to buy 300 sq km on the island nation because it did not meet legal requirements on foreign ownership.

Some commentators have said the plan raised questions over regional security because of Iceland’s strategic location in the Arctic where a number of nations are competing for resources, suggesting that Huang could be a surrogate for Chinese expansionism.

“I’m not buying land, I’m investing in tourism infrastructure,” Huang said in an interview with Sina Finance, an online news service.

“The difficulties that Chinese enterprises encounter are numerous, like the view that state-owned enterprises represent your country, that whatever your background is you’re a military business and touch on national security,” he said.

Huang said unspecified foreigners “use all kinds of such reasons to build an invisible wall to surround and contain you.”

“You can come and buy a house, and you can emigrate here and bring your riches with you, or you can buy my luxury goods, but if you want to touch my natural resources, then I’m sorry, I won’t let you,” he said.

Huang, who is chairman of Beijing-based Zhongkun Investment Group and was 161st on the Forbes list of the richest Chinese in 2010, accused Westerners of double standards.

“They come to China and say, ‘this isn’t open, that isn’t open’, which just shows their hypocrisy and deep prejudice and unjust nature,” he said.

Such Western businesses “encourage the opening of the Chinese market while they close their doors to Chinese investments,” Huang said in an interview with the China Daily. “The denial reflects the unjust and parochial investment environment facing private Chinese enterprises abroad.”

Huang had agreed to pay one billion Iceland krona (US$8.3mil) to buy Grimsstadir farm in northeast Iceland, where he planned to build a golf course, hotel and outdoor recreation area.

But Iceland’s Interior Ministry said on Friday that the deal did not meet legal requirements for land sales to companies outside the European Economic Area, including that company directors must be Icelandic citizens or permanent residents for at least five years, and that 80% of shares in purchasing firms should be held by Icelandic citizens.

The deal would have marked the first major Chinese investment in Iceland, which is still recovering from the collapse of its banks in 2008 during the global financial crisis.

By Reuters

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