Bandar Ainsdale project in Seremban to kick off affordable housing scheme

SIME Darby Property Bhd will be offering affordable housing in the coming years as a stategic component in their up-and-coming townships in line with market needs and to complement the government's affordable-housing scheme.


Wahab: (75% sales record) is a clear reflection that residential properties in prime areas are still very much in demand and we are optimistic.

In his first press statement since he took over as managing director, Datuk Abdul Wahab Maskan says they have already identified areas in their townships for PR1MA housing, also known as 1Malaysia Housing Programme. Their first township to kick off affordable housing will be Bandar Ainsdale in Seremban.

Wahab, who is also Sime Darby Bhd group chief operating officer, assumed the position at the property division from Tunku Datuk Badlishah Tunku Annuar in June. Wahab is also Sime Darby group chief operating officer.

There are several reasons why Sime's contribution to affordable housing will begin at Bandar Ainsdale. First, Bandar Ainsdale is a new 550-acre township that will be launched at the end of this year and it will be viable to begin social housing with a clean slate. Ainsdale will comprise residential and commercial segments. Over and above that, the focal point of that township will be its integrated public transportation component with a KTM station to be its public transportation terminal. This will add to Bandar Ainsdale's accessibility, which will be a much needed infrastructure in any affordable housing scheme.

Other areas that will subsequently offer affordable housing include Ara Damansara in Petaling Jaya near Subang Airport, Bandar Bukit Raja in Klang, Putra Heights in Subang Jaya, Kota Elmina in Sungai Buloh, Elmina West in Shah Alam and Lagong Mas in Rawang, Selangor.

Earlier, it was reported that the Economic Planning Unit (EPU) would focus on three projects comprising the first PR1MA scheme to be offered by the government in Presint 11, Putrajaya, Bandar Ainsdale in Seremban and Bandar Tun Razak in Cheras this year.

EPU deputy director-general Datuk Mat Noor Nawi said about 4,000 units will be offered in this first batch of PR1MA housing with the development in Presint 11 to provide 560 apartment units while the other two developments will consist of a mix of landed and high-rise and apartment units for the Bandar Ainsdale in Seremban and Bandar Tun Razak projects respectively.

Other than affordable housing, Sime also plans to launch more than RM2bil worth of properties from the third quarter of this year to the end of its 2012 financial year which closes at the end of June. Wahab says they are en route to achieving this target.

The division recently launched Isola, a 216-unit serviced condominium in Subang Jaya, Selangor which has a gross development value of more than RM210 mil, which was 75% sold on its first day itself.

“This is a clear reflection that residential properties in prime areas are still very much in demand and we are optimistic. The residential property segment is expected to remain positive this year, especially in the main areas of growth such as the Klang Valley and other urban centres. Similarly, shop houses will also remain attractive to buyers and investors, especially if they are located in high growth areas,” he says.

Launches targeted till the end of this year include link houses (about 271 units), shop offices (about 61 units), condominium/serviced apartments (about 966 units), bungalows (about 71 units) and commercial units (about 171 units) in Denai Alam, Nilai Impian and Bandar Bukit Raja.

To date, it has successfully launched Maple Terrace in Denai Alam, Avalon 1 and Avalon 11 in USJ Heights, Davina 111 and Iluna in Nilai Impian. These properties are worth more than RM320mil collectively, the statement says.

They will have seven launches for the first six months of next year, or 3,848 units of condominiums, industrial properties, mixed development and bungalows. Next year's launches include a mixed development with 35 units in Ara Damansara, 554 units of villas and condominiums in Putra Heights in Subang Jaya, 231 units of mixed development in Bandar Bukit Raja in Klang and about 90 units of industrial properties in Elmina East in Shah Alam. Other launches slated for next year include about 1,000 units of mixed development in Denai Alam, Shah Alam, 540 units of bungalows and condominium-cum-villas in Bukit Jelutong in Shah Alam and about 1,400 units of mixed development in Melawati in Ulu Kelang.

Subsequent to the success of Sime Darby Property's Oasis Square in Ara Damansara, where Sime Darby Property and Sime Darby Plantation's corporate head offices have been re-located to, the next commercial development in the Ara Damansara township will be Oasis Corporate Park. That mixed-commercial development will see its first 340 units of flexi-office suites with 620 sq ft of office space each, launched early next year.

The presence of these two corporate HQs will generate a sizeable retail market for the area. Together with Oasis Corporate Park, the company expects Ara Damansara to be a popular suburb in time to come.

“Development in Ara Damansara is about 85% completed. Residential properties in Ara Damansara have recorded an average price growth of about 100% in five years. This translates into a yearly average growth of 13.7% compounded.” (Source: Jones Lang Wootton research). Together with the 9.8 acres of Oasis Corporate Park development, that township will eventually have a mix of corporate offices, serviced suites, a hotel and a convention centre.

Upcoming developments in Ara Damansara include Senada Condo Villa, an 18-unit project with an estimated selling price of around RM3.8 million per unit with built-up of the units ranging from 7,080 to 7,500 sq ft, which is scheduled to be launched in the second quarter of next year. The other project is Community Square, a commercial hub and low rise centre that focuses on offering convenience to the Ara Damansara community. This community square is also anticipated to provide added value in terms of commercial value to the community.

By The Star

Polish the gems of KL

The festive season is just around the corner. Many of us have either planned our vacation and are most probably travelling at this very moment. Whichever destination we have in mind for our vacation, the consensus is travelling provides us an opportunity to revitalise ourselves, gain knowledge and broaden our experience.

For some of us, travelling is an avenue for reflection and inspiration. Seeing a new place and/or experiencing a new culture allows us to reflect on what we have and gives us the motivation to seek improvements.

Without a doubt, the experience and knowledge gained from my trips especially those abroad have inspired me with many ideas to improve myself, my family and the community. By simply comprehending the ordinary activities of the common people around the world, a new sphere of ideas becomes apparent.

Insignificant at first sight, a closer examination draws out the importance of the activities of the people albeit with different perspective from different people. For me, the significant realisation was that these activities were made possible due to the structure and growth of the city as well as the mindset of the people. These activities form part of the pivotal elements that make a city liveable, likeable and eventually, a world class city.

Going down memory lane, I remember seeing hundreds of people practising Tai Chi in one of the parks in Beijing. In other parts of the world, young executives are commonly seen reading the newspapers on their way to work via the Metro in Paris; children running freely around the playground in Sydney; students performing at a music festival in Hong Kong; families having fun at a carnival in London; and the list goes on.

One would enquire: “What is so special or significant about these ordinary activities that other people in different parts of the world do?”

Let's take the Tai Chi exercise in Beijing as an example. In my view, it reflects the health consciousness, community spirit, and the value of volunteerism practised by the society in Beijing. The group leader of the Tai Chi exercise conducts the exercises on a voluntarily basis. In return, he/she is joined by people of all ages who are interested in the exercise for health reason, community kinship or simply, as a form of relaxation. This creates a healthy society and a sense of belonging among the community, something of which we could promote in Malaysia.

My last article touched on the macro aspects of making Kuala Lumpur a world class city. Now, let's cover the social and cultural aspects which form the other integral parts that would contribute to this vision.

The social and cultural characteristics basically address the “software” aspects of the society. The elements that form this “software development” include peace, prosperity, history, culture, education, entertainment and the rich diversity of the society. With these elements in place, bountiful benefits can be achieved.

Let's reflect on the examples that I have shared earlier. What allows the children to run freely in a playground or why do young executives have the luxury to read the newspaper on their way to work or how does one get students to perform at a music festival or run a carnival for families to enjoy?

There is probably more than one answer to all of the questions. One thing that is common is the fact that all these activities are made possible when the city is allowed to flourish, free of crime and has world class facilities for people.

We can achieve the same by changing our mindset from “wait-an- see” to “let's explore”. We can work together to prevent crime and encourage the use of public amenities such as parks with care through education and public awareness. An improved public transportation system to ease traffic congestion and enhance workforce efficiency is definitely a must.

In terms of human resources development, a well thought and long-term plan is required to retain local talent and attract professionals from abroad. Educational institutions must provide a high level of quality education and encourage students to have a balance exposure to the arts and sciences in order to cultivate greater creativity which would benefit the society as a whole.

To generate a greater sense of belonging and to promote community living, city stakeholders can organise more social events and entertainment events, such as cultural performances, open air concerts, carnivals and sporting events. Significant events will bring in the tourists and can eventually become attractions for the city.

Living in a multi-racial and multi-cultural society, we get to enjoy the differences that come with this diversity and uniqueness. For example, we are pampered with a seemingly endless variety of food and eating out is a real gastronomic treat. Imagine having a simple meal and drink of your choice at a mamak stall and paying less than RM10 for the whole dining experience. Malaysia, especially KL, is a gourmet centre for the locals and tourists alike. I believe every Malaysian would attest to that and agree that food is the common element that brings people together.

We should therefore put emphasis on sustaining and enhancing this social and cultural uniqueness to our benefit. Each of us plays a part in contributing to the transformation of KL and of the country. Let us start by equipping ourselves with good practices so that KL can earn the recognition as a world class city and place Malaysia more prominently on the world map.

The diversity of our food, culture and heritage is the hidden gems ready to be uncovered and once discovered and polished, they will make KL and Malaysia shine and reveal their true beauty.

Datuk Alan Tong is the group chairman of Bukit Kiara Properties, he was the FIABCI World President in 2005-2006 and was recently named Property Man of The Year 2010 by FIABCI Malaysia.

By The Star (by Datuk Alan Tong)

Singapore move likely to benefit Iskandar

JOHOR BARU: Property developers in Iskandar Malaysia are expected to benefit from the new ruling introduced by Singapore for foreigners buying private properties in the republic.

The move was introduced on Wednesday to cool private residential property prices in the island state which are on the uptrend despite a slowing economy.

Johor Real Estate and Housing Developers Association branch chairman Simon Heng said foreigners buying properties in Singapore for investment might look elsewhere in the region.

“With Iskandar Malaysia progressing well since its inception five years ago, these buyers (foreigners and Singaporeans) are most probably looking at Johor Baru,’’ he told StarBizWeek.

Heng said prices of residential properties in Johor were much lower than those in Singapore and Johor’s close proximity with the republic was an added advantage compared with places like Kuala Lumpur and Penang.

He said developers with projects in Nusajaya would benefit the most as there were no restrictions on property ownership by foreigners, including Singaporeans.

On the other hand, areas outside Nusajaya in Iskandar did not enjoy the privilege and in places where the 30% quota was imposed on developers selling residential properties worth RM500,000 and above, Heng said.

Another strong selling point for Nusajaya was its location, not far from the second link crossing, which made it a favourite place for Singaporeans living in Johor Baru but working in the island, he added.

UEM Land Holdings Bhd is the master developer of the 9,308ha Nusajaya which is the key driver of Iskandar and one of the five flagship development zones in the country’s first economic region.

Nusajaya comprises seven signature developments – Kota Iskandar (Johor State New Administrative Centre), Southern Industrial and Logistics Clusters, Puteri Harbour Waterfront Development, EduCity, Medical City, International Destination Resort and Residential Developments.

Other flagship development zones in Iskandar are the Johor Baru City Centre, Eastern Gate Development Zone, Western Gate Development Zone and Kulai-Senai.

“Rehda members are hoping that the special treatment accorded to Nusajaya would be extended to other development zones in Iskander as well,’’ he said.

Meanwhile, Daiman Development Bhd general manager Siah Chin Leong said it was still too early to see the impact on the Johor Baru property market following the new ruling.

He said majority of foreigners buying private residential properties in Singapore were investors and high net income individuals who already owned properties in other major cities in the world.

Siah said overseas investors were particularly the affluent Chinese from the mainland, Indonesian Chinese, Indian nationals and, to some extent, Malaysians, were flocking to buy properties in Singapore.

Berinda Group sales manager Lim Sung Heng expected that there would be a spill-over effect from the ruling on the Johor Baru property market probably within the next few months.

He said the state government and other relevant agencies must make more effort to make Iskander a preferred destination for property buyers not only Singaporeans but also other nationalities.

By The Star

Foreigners and PRs have to pay more stamp duties in Singapore

On Wednesday, The Singapore government imposed a new 10% stamp duty on foreigners and companies buying private residential property in the city state. The move, its fifth in the past two years, is the first in 15 years targeted at foreign buyers.

The stamp duty, effective from Dec 8, is in addition to the existing buyers' stamp duty, which is 1% for the first S$180,000 of the purchase price, 2% for the next S$180,000 and 3% for the rest, The Straits Times reported.

Permanent residents who already own a property, and who are buying a second or subsequent property, will now have to pay an extra stamp duty of 3%. Singaporeans who already own two properties and are buying a third or subsequent property will also pay extra stamp duty of 3%.

For a S$1 mil property, a foreigner will have to pay an additional buyer's stamp duty of S$100,000 on top of the current S$24,600.

The move underscores two important issues.

The first, that inspite of the “open and free” market system there, the government is ready to swallow the bitter pill of plying measures that may well add to an already weakening Singapore economy, if those measures were to be the salvation of the country's greater economy in the long-term.

The second is its timing. Why, at this juncture when European leaders are meeting this week in an attempt to solve the eurozone crisis?

Thus far, foreigners and Permanent Residents, many of whom are Malaysians, have enjoyed a fairly “open and free market” when it comes to property ownership. Until Wednesday, they faced only certain restrictions in buying landed homes.

Notwithstanding this open, free and transparent system, Singapore has a two-tiered property market. There is the HDB (or Housing Development Board) and the private residential market. HDB housing makes up the bulk of the market, at about 80%. Private residential market accounts for only 20%.

The fact that the government is concerned about prices shooting further in this 20% portion underscores the primacy of the property sector in the country's greater economy.

It also underscores its vast exposure in terms of value, that this 20% commands in Singapore's property market. This private residential portion is primarily owned by foreigners where prices are many times that of the HBD portion.

In the event the eurozone talks hit a snag due to disagreements among the eurozone members this weekend, and because of Singapore's high foreign exposure, any price fall in that 20% portion will also affect the HBD portion.

In any market where there is a large foreign exposure, there will be a greater degree of volatility because foreign buyers will be the first to leave that market. They will not be staying around to weather the storm. It is the PR holders and citizens who will be staying put.

Foreign buyers accounted for 19% of all private residential property purchases in the second half of this year, up from 7% in the first half of 2009. These figures exclude purchases by PRs, The Straits Times reported.

Sales of new private homes hit a record 16,292 last year. This year looks to be another banner year with 13,688 units sold in the first 10 months, Straits Times reported. That imposition of the stamp duty is sending a message to investors and speculators that the government is seriously concerned about the formation of any bubbles in that 20% private residential portion.

Let us return to Malaysia. For years, property consultants and developers have been trying hard to sell high-end properties, both landed and high-rise to foreigners. They are at a loss why despite comparatively low prices in Malaysia, our properties have not enjoyed the same attention as those in Singapore, Hong Kong, China, Vietnam and other southeast Asian countries.

The fact is, low prices alone will not attract foreign buyers. While property ownership seems easy enough foreigners can buy residentials exceeding RM500,000 there are many other factors that play an important role. Notwithstanding all these, do we want a large foreign exposure? There are mixed views about this among property consultants, developers and government.

It is a fact that the Malaysian property sector will not have the global intricacies tied up with being an international financial hub, so we need not be too worried about that. But we do need to mull over our own property sector as a result of Singapore's move and consider how we can fine-tune our property sector less the threat of eurozone woes come knocking on our doors. We do have a lot of high-end properties waiting to be sold and authorities who approve such projects need to consider today's global climate.

Assistant news editor Thean Lee Cheng has two questions: Do we want a large foreign exposure? And if not, what are we to do with the thousands of units of high-end housing which are unsold today?

By The Star

SP Setia targets RM4bil in property sales

SHAH ALAM: SP Setia Bhd posted a 30% year-on-year jump in net profit to RM327.97mil for its financial year ended Oct 31, 2011 (FY11). The property developer attributed this mainly to higher selling prices for new launches and the stabilisation in the prices of construction materials. Revenue also increased 27.9% to RM2.23bil.

The group also set a new full-year sales record in FY11 of RM3.29bil, a 42% increase from the previous record of RM2.31bil set in FY10.

It was the fourth consecutive year of increase in the group's sales and represented the second consecutive year that total group sales had exceeded the RM2bil mark, said SP Setia in a Bursa Malaysia filing.


Liew: ‘We target 70% of our product range in Singapore to cater to local upgraders.’

(The sales figures are based on the retail pricing of properties sold, while revenue is recognised in the accounts when the developer is paid at the point of purchase and also when construction is completed in stages.)

SP Setia has proposed a final dividend of 9 sen per share. Together with the interim dividend of 5 sen per share, total dividend for the year works out to be 14 sen per share, representing a payout of about 59% of the group's net profit.

The group's profit and revenue were largely derived from property developments in the Klang Valley, Johor Baru and Penang.

Ongoing projects which contributed included Setia Alam and Setia Eco-Park at Shah Alam (Selangor), Setia Walk at Pusat Bandar Puchong (Selangor), Setia Sky Residences at Jalan Tun Razak (Kuala Lumpur), Bukit Indah, Setia Indah, Setia Tropika and Setia Eco Gardens in Johor Baru and Setia Pearl Island and Setia Vista in Penang.

President and chief executive officer Tan Sri Liew Kee Sin said the group was aiming to achieve total new sales of RM4bil in FY12.

“This is despite factors such as the external headwinds from the economic uncertainty in Europe, and Bank Negara's guidelines seeking to further encourage prudence in bank lending,” he told reporters.

About 90% of new sales in FY12 would come from Malaysia, with the balance from foreign markets.

Liew stated that the group had strong branding, and offered an extensive range of products that cater to diverse market needs.

The group's recent launch of its integrated green commercial and mixed residential development, KL EcoCity (Kuala Lumpur), is expected to contribute strongly to sales in FY12.

Other recent launches like Fulton Lane and EcoXuan, the group's maiden project in Melbourne and second project in Vietnam respectively, are expected to also help augment sales in FY12.

Meanwhile, Liew said he was not too concerned about the recent 10% increase in stamp duty for foreigners buying homes in Singapore.

“We target 70% of our product range in Singapore to cater to local upgraders. Foreign buyers will be about 30%, so we do not think there will be much of an impact,” he said.

Liew also said SP Setia was interested in making another bid to secure the project to redevelop London's Battersea Power Station. SP Setia had submitted a 262mil (RM1.3bil) offer for the project in November that was turned down, before recently making a a second bid of 324mil (RM1.6bil) that was also rejected.

By The Star

Mutual gain for SP Setia, PNB

SHAH ALAM: The proposed management agreement between property developer SP Setia Bhd, its president and chief executive officer Tan Sri Liew Kee Sin and Permodalan Nasional Bhd (PNB) is a “win-win” for everyone.

Liew told reporters that the proposed management agreement was now subject to the approval of the Securities Commission (SC), which has the option of requesting for an extraordinary general meeting (EGM) concerning the proposal.

“If the SC clears the proposal, then the management agreement will become part and parcel of the offer documents (by PNB). Until then, we are not allowed to talk about it,” said Liew.

In late-September, PNB and parties acting in concert announced a takeover bid of the property developer at RM3.90 per SP Setia share and 91 sen per warrant.

Liew added that the proposed management agreement, which was thrashed out over the last six weeks, was the first of its kind in Malaysia. Hence, the SC may require the company to hold an EGM.

“There has never been a takeover, and then (the parties) do a management agreement. Have you ever heard of this in Malaysia?”

Liew said in the event the proposed management agreement was not approved by the SC, SP Setia could make an appeal to the regulator.

Last Friday, Bursa Malaysia was told that SP Setia, Liew and PNB had proposed to enter into an agreement to formalise the incentives and management rights relating to the management and general conduct of the business of SP Setia.

A recent StarBiz report quoted a source as saying PNB might be paying out lucrative bonuses and stock options to SP Setia’s top management staff in order to persuade them to stay on with the group.

There had been fears expressed earlier that PNB’s move to take control of SP Setia might lead to an exodus of the group’s management staff.

By The Star (by THOMAS HUONG)

Magna Prima plans projects worth RM700mil GDV next year

Rahadian (left) exchanging documents with Al-Madinah International Foundation chairman Professor Ahmad A A Al-Sheha.

KUALA LUMPUR: Magna Prima Bhd will launch property projects with gross development value (GDV) totalling RM700mil next year.

These included Boulevard Business Park Phase 2 in Jalan Kuching, Kuala Lumpur, consisting of serviced apartments with a GDV of RM220mil, executive director Datuk Rahadian Mahmud Mohammad Khalil said.

He was speaking to reporters after an agreement signing for the sale of the company's U1 office tower blocks to the Al-Madinah International Foundation. The 15-storey single tower in Shah Alam with about 92,700 sq ft of gross floor space has a GDV of RM29mil.

The Middle Eastern-based educational foundation, which will be the sole tenant, will rename the building MIF Tower and will make it its headquarters.

Rahadian said Magna Prima would also launch the second phase of its Alam d'16 consisting superlink homes in Shah Alam with a GDV of RM210mil and its first overseas property project, Dynasty Living, in Melbourne, Australia, with the remaining unsold GDV of RM270mil.

“We will offer this remainder of the Australian apartments, which have been 60% sold so far, to locals in January 2012. This development is located in the central business district opposite Victoria Market, a very prime location,” he said.

Rahadian said the Australian system for selling properties was different from Malaysia as “Australia practices the build-then-sell concept, which means Magna Prima would not be able to realise revenue from its Australian development until the handover is done”.

“We have to build first while the initial 10% deposit paid by buyers will be placed in a trust fund. We use our own money to build for the time being,” he added.

Rahadian said property sales were expected to remain good next year. “We think there are concerns for office space but the outlook for residential property market remains good,” he said.

By The Star

S’pore property shares plunge on cooling move

SINGAPORE: Shares of Singapore developers fell sharply after the government took new steps to cool property prices with the toughest measures aimed at foreign buyers who have become increasingly visible in the residential sector.

Effective yesterday, buyers who are not Singapore citizens or permanent residents will have to pay an additional 10% stamp duty when they buy a home, effectively raising the purchase price by 10%.

Previous policy measures had targeted speculators by imposing an extra duty on those who bought and sold properties within four years and limiting the amount of loans available to prospective buyers.

“It probably signals a change in policy. The government had previously been very consistent in welcoming foreign investments, so that is why the new policy came as a shock,” said Colin Tan, head of research and consultancy at Chesterton Suntec International.

Singapore residential prices have held up well despite a slowing economy, helped by low interest rates and rising demand from overseas investors, in particular those from China.

The surprise an-nouncement on Wednesday night hit shares of property developers yesterday.

CapitaLand Ltd, South-East Asia's largest developer, fell as much as 8% to S$2.40, while No. 2 ranked City Developments Ltd dropped 7.3% to S$9.29.

Shares of Ho Bee Investment Ltd, which focuses on high-end condominiums, fell by as much as 12.1% to S$1.09.

By Reuters

Hektar REIT buys assets for RM181m

PETALING JAYA: Hektar Real Estate Investment Trust’s (REIT) trustee AmTrustee Bhd has entered into two conditional sale and purchase agreements for the acquisition of two malls from Sri Awona Sdn Bhd and Awona Land Sdn Bhd for a total RM181mil.

The trustee signed an agreement for a freehold three-storey mall, Landmark Central Shopping Centre, located in Kulim worth RM98mil and another agreement worth RM98mil for 110 strata parcels within the freehold six-storey Central Square Shopping Centre in Sungai Patani, Kedah.

By The Star

SP Setia targets RM4b sales in FY2012

SP Setia Bhd targets RM4 billion sales in its financial year ending Oct 31, 2012, driven by both local and foreign property sales.

President and CEO Tan Sri Liew Kee Sin said the group achieved historic highs in both sales and profits for its financial year ended Oct 31, 2011.

The group's full-year sales for FY2011 of RM3.29 billion represents a 42 per cent increase from its previous record high of RM2.31 billion set in FY2010.

The group's profit after tax for FY2011 of RM322.4 million also increased 28 per cent from RM251.8 million in the previous year, the highest ever profit achieved by SP Setia for a financial year.

"In spite of the difficult economic environment, we are confident we can achieve the target as we are able to deliver products that people want to buy," he said at a media briefing on SP Setia's financial results.

Liew said sustained demand for properties in the group's existing projects in the Klang Valley, Johor Baharu and Penang will continue to underpin the group's sales performance in FY2012.

FY2012, he said, will also see the launch of a slew of new projects which will enable the group to tap into new sources and corridors of growth to expand its market share.

"These include Setia Eco Glades in Cyberjaya and Setia Business Park II in Tebrau Johor, and the Group's first high-rise luxury integrated residential and commercial project in JB City Centre called 88 Setia," he said.

Over in East Malaysia, the group will shortly be launching its maiden project in Sabah, Aeropad -- an integrated commercial development located in Kota Kinabalu.

On the international front, Fulton Lane in Melbourne is also doing well, and the group targets to launch the first development in Singapore to be called 18 Woodsville during the first half of 2012, he said.

"In Vietnam, both Eco Lakes and EcoXuan, the group's second project, are expected to help augment sales," he said. SP Setia has proposed a final dividend of nine sen per share.

Together with the interim dividend of five sen per share, total dividend for the year works out to 14 sen per share, representing a payout of approximately 59 per cent of the group's net profit.

Liew said the group is also keen on the London property market and is looking at opportunities.

As for the Singapore property market, he said, the group's property project there is focusing on locals who are upgrading to better homes.

On Sept 28, 2011, SP Setia received a notice of take-over offer from Maybank Investment Bank Bhd (Maybank IB) on behalf of Permodalan Nasional Bhd (PNB) in respect of PNB's obligation to extend a take-over offer.

On Oct 14, the Securities Commission (SC) approved the takeover offer by PNB. On Dec 2, 2011 Maybank IB, on behalf of PNB, submitted an application to the SC in relation to the proposed formalisation of certain incentives and management rights relating to the management and general conduct of business of the SP Setia group of companies to be entered into between PNB, Liew and SP Setia Bhd.

The proposed arrangement and the offer document is pending the approval of the SC. Liew said the group is waiting for the SC's clearance.

The management agreement submitted to the SC is a win-win plan for everybody in PNB and SP Setia, he added.

By Bernama

Pavilion REIT seeks expansion

PAVILION Real Estate Investment Trust (Pavilion REIT), the largest retail REIT in Malaysia, is eyeing more local assets to spur growth.

Pavilion REIT Management Sdn Bhd chief executive officer Philip Ho said the trust is seeking opportunities to expand its assets in Penang, Johor and the Klang Valley.

Ho said Pavillion REIT will evaluate any financially viable investment opportunity that comes around.

"As a retail real estate investment trust, our duty is to acquire malls and build up the portfolio," he told reporters after its listing ceremony here.

Ho said the company's trustees had signed three rights of first refusal (ROFR) to acquire Farenheit88, the Pavilion Mall's extension, and a mall in USJ Subang Jaya.

With an appraised value of RM3.54 billion, Pavilion REIT is currently made up of two assets - Pavilion Mall and Pavilion Tower.

The mall, which contributes 96.4 per cent to the appraised value, has 1.3 million sq ft of net lettable area.

It boasts of about 450 retail tenants, making it the largest premium retail fashion mall in Malaysia.

Pavilion REIT yesterday fetched a 13.3 per cent premium over its offer price on its debut on Bursa Malaysia.

It opened at RM1.03, 13 sen higher than its institutional price of 90 sen, with 15.7 million unit shares traded.

Ho said the listing provides the company with direct access to capital markets, thereby strengthening its financial capacity to seize new opportunities in the country.

"We are committed to enhance unitholders' return and value, both through the organic growth of our existing portfolio as well as visible growth via acquisitions," he added.

By Business Times

New measures to cool Singapore housing mart

SINGAPORE: Singapore yesterday announced new measures to cool the city-state’s housing market, saying foreigners who buy private homes will have to pay an additional stamp duty equal to 10 per cent of the property value.

Permanent residents who already own a Singapore home will pay an additional stamp duty of three per cent when they buy a second and subsequent properties, while citizens who purchase a third and subsequent homes will pay three per cent.

By Reuters

RM26m properties sold at HomeGuru event

More than RM26 million worth of property was snapped up by Singaporean property buyers at HomeGuru’s inaugural Malaysia Property Showcase in Singapore on Dec 3-4.

The event drew almost 900 property buyers and saw over 300 units of real estate sold. It involved the participation of six leading Malaysian developers, namely Andaman Group, Iereka Corporation Bhd, Lone Pine Group, Sime Darby Property, The Haven Sdn Bhd and UEM Land.

In a statement today, PropertyGuru Group chief executive officer Steve Malhuish said, "In collaboration with its Singaporean counterpart, PropertyGuru.com.sg, HomeGuru established the Malaysia Property Showcase 2011 to create awareness of key Malaysian developments regionally, especially amongst interested investors in Singapore, Indonesia, Hong Kong and Thailand.

It functioned as an optimal platform for the participating developers to network amongst each other and with prospective international investors, he added.

Noting the event's success, Andaman Group head of sales and marketing Datuk Vincent Tiew said: "We are very inclined towards participating in future showcases with PropertyGuru Group at the helm."

By Bernama

River of Life beautification works valued at RM1bil

KUALA LUMPUR: The River of Life (RoL) project beautification works portion, of which the Ekovest-MRCB joint venture (JV) is said to be ultimately eyeing, is worth RM1bil, analysts said.

It is understood that the entire RM2.2bil project which was announced on Tuesday for the RoL project includes the total cost of land development and sales adjoining the Klang and Gombak rivers with a total stretch of 10.7km.

Thus, if the Ekovest-MRCB JV is successful in attaining the project, Ekovest Bhd which holds a 60% stake in the JV would be getting RM600mil worth of jobs while RM400mil worth will go to Malaysian Resources Corp Bhd (MRCB).

The Ekovest-MRCB JV was on Tuesday appointed the project delivery partner for the first phase of the RM2.2bil RoL project to transform the rivers running through the heart of Kuala Lumpur through river rehabilitation, beautification of riverbank and river corridor developments.

It is also understood that this project, if the Ekovest-MRCB venture were to eventually secure it, is expected to see Ekovest taking a front lead’s role given its majority stake in the JV.

Ekovest shares closed 4 sen higher to RM2.64 yesterday but with little volume traded of only 10,000 shares.

However, this project is likely to positively impact smaller-capitalised Ekovest more than MRCB should the Government decide to award the beautification works project to the Ekovest-MRCB JV.

At this stage, with the current appointments, the Ekovest-MRCB JV will earn a fee of RM22mil equivalent to 1% of the project value over the project period of three years, which is an insignificant amount of RM2.9mil per year to MRCB over the next three years.

RHB Research in a report yesterday said it expected the formal awarding of the contract for the beautification works and the physical works of this project to only start next year.

Analysts are positive on the project and RHB Research had rated MRCB a “trading buy” with a target price of RM2.55 while Hong Leong Investment Bank had a target price of RM2.22 on the stock.

By The Star

Hektar REIT said buying 2 malls for RM180m

Hektar REIT is buying two malls in Kedah for an estimated RM180 million, sources say.

The malls are believed to be Kulim Landmark Central and Central Square Sg Petani.

An announcement from the company is expected to be made as early as today.

By Business Times

UDA seeks partners for Pudu project

UDA Holdings Bhd expects its new master plan for the Pudu Jail redevelopment project to attract local and foreign investors as it seeks partners to share the development bill.

"We need to find the most suitable model that will attract investors and bring in funds for the project," said UDA chairman Datuk Nur Jazlan Mohamed.

UDA, whose assets are estimated to be worth RM2 billion, has a debt of more than RM900 million. Its cash in hand is about RM90 million.

Nur Jazlan had said in June that the Pudu Jail redevelopment project would bring in new sources of recurring rental income to UDA, estimated at between RM200 million and RM300 million a year, and more importantly, a secure future.

The 8ha Pudu Jail site became Kuala Lumpur's main prison from 1895 until its formal closure in 1996.

An integrated commercial and transport hub is being planned for the site, which will comprise office towers, serviced residences, a mall and shoplots worth more than RM6 billion overall.

The project is part of the Economic Transformation Programme (ETP) under the New Economic Model (NEM) to turn Klang Valley into the Greater Kuala Lumpur economic district and Malaysia into a high-income nation by 2020.

It was reported that China's Everbright International Construction Ltd had submitted a bid to develop the hub for around RM3 billion.

UDA had also recommended Everbright as its partner for the redevelopment after a shortlisting process but it was rejected by the Ministry of Finance (MOF).

The MOF then instructed UDA to set up a steering committee to oversee the redevelopment and split the 8ha land into three parcels.

MOF wants two parcels to be given to Bumiputera companies to boost their participation in land development projects in the country. One parcel is to be given to a non-Bumiputera firm.

Deputy Finance Minister Datuk Dr Awang Adek Hussin said the government would be flexible in allowing the Bumiputera companies to partner non-Bumiputera firms to develop the two land parcels.

"But there must be full Bumiputera participation in the land development," he said at the launch of the 3-star Ancasa Express Hotel at Pudu Sentral and UDA's own 40th anniversary corporate stamps yesterday.

By Business Times

Re-developing Pudu jail site project split into three parcels

KUALA LUMPUR: The Government, via the Finance Ministry (MoF), has instructed UDA Holdings Bhd to split its re-development plans for the Pudu Jail land into three parcels to ensure more bumiputra participation in the project.

UDA chairman Datuk Nur Jazlan Mohamed said that of the three parcels, two would given to bumiputra investors to develop, while UDA would develop the balance parcel.

The Pudu Jail redevelopment project has already been named Bukit Bintang City Centre.

“We are doing a new master plan for the development. The Government wants more participation of bumiputras in the real estate sector in Malaysia,” he said yesterday after the launch of UDA's “40 years” personalised corporate stamp and the opening of Hotel Ancasa Express @ Pudu.

Nur Jazlan remarks confirm earlier reports that UDA had been instructed by its shareholder, the MoF, to carve up the land.


File picture of Pudu Prison. The site has vast potential and has been named Bukit Bintang City Centre.

“UDA will be the main developer for the project. For the two plots, bumiputra developers will be sourced through open tenders and they need to be financially capable,” he said, adding that Pudu Jail was expected to be developed as a “transport hub”.

The Pudu Jail land on 8.09ha close to Berjaya Times Square in Kuala Lumpur has vast potential for high-end mixed development.

It is reported the Government had dropped a mainland Chinese developer's US$1bil (RM3bil) redevelopment plan in favour of splitting the prime site into parcels to be developed by mainly bumiputra companies.

UDA is said to have come under fire recently for allegedly abandoning the bumiputra agenda by not appointing bumiputra joint-venture turnkey investors for the proposed Bukit Bintang City Centre but Nur Jazlan had denied the allegation.

By The Star

New homes released into the Singapore market this year may hit decade-high

SINGAPORE: The number of new private homes hitting the market this year would likely be the highest in a decade, thanks to a surge of launches recently, said analysts.

Experts said that about 18,300 new homes could be released this year, surpassing the 16,500 last year the highest so far in a decade and easily trumping the annual average of 9,900 between 2001 and 2010.

The numbers have been rocketing this quarter as developers rush out homes in what is usually a quiet period.

There were several major launches in October and last month, including Sim Lian's Parc Vera condo in Hougang, City Developments' The Palette in Pasir Ris, and Bedok Residences from CapitaLand.

More new projects were likely to follow this month, said industry watchers, bucking the festive season trend for a sales slowdown.

Rushing to release projects earlier allowed developers to ride on the prevailing home-buying momentum, said Chia Siew Chuin, director of research and advisory at Colliers International.

“Some developers have managed to expedite the sales preparation process and shorten the period from a typical timeline of between nine and 12 months to between six and nine months,” Chia said.

Pushing homes out for sale now also meant getting a headstart on the large batch of government land sales sites that were sold this year and which were expected to debut in the market next month, said Nicholas Mak, head of research at SLP International.

An UOL Group and SingLand joint-venture started sales of its Archipelago project last Friday with average prices hovering just above S$1,000 per sq ft (psf). About 200 homes were expected to be launched in the first phase of sales.

The UOL Group declined to reveal sales figures, saying more details would be released next week.

Far East Organisation's 231-unit The Scotts Tower in Scotts Road will be launched next week, two years after plans to reconfigure the then 68-unit luxury development into smaller units were announced.

Far East said in a statement on Monday that 34 of the 56 units released during the preview sales had been bought.

Prices started at S$1.94mil, or S$3,109 psf, for a 624-sq-ft one-bedroom SoHo apartment.

Far East's The Hillier, a 528-unit project in Hillview Avenue, near the upcoming Hillview MRT station, and the 435-apartment The Nautical in Sembawang, being built by MCC Land, would be launched within the next two weeks.

Agents said prices at The Hillier were expected to be around S$1,200 psf, with 503-sq-ft one-bedroom units to go for about S$750,000.

Indicative prices for The Nautical are expected to range between S$850 and S$1,000 psf.

By Straits Times Singapore

River of life job in KL valued at RM2.2bil

Ekovest-MRCB JV will earn RM22mil fee from the River of Life project

PETALING JAYA: Ekovest-MRCB JV Sdn Bhd (EMJV), a 60:40 joint venture between Ekovest Bhd and Malaysian Resources Corp Bhd (MRCB), has been appointed the project delivery partner (PDP) by the Government to assist in the implementation and delivery of the River of Life (ROL) project.

Ekovest told Bursa Malaysia yesterday that the project was valued at RM2.2bil over three years. The value of the contract was only revealed yesterday.

“As the PDP, it (EMJV) will earn a maximum fee of RM22mil, which is equivalent to 1% of the total projected works to be delivered over the three-year period. The PDP will also enjoy monetary incentives with respect to the river rehabilitation and beautification works,” it said.

It did not elaborate on the monetary incentives.

The ROL is an Entry Point Project identified in the Greater Kuala Lumpur National Key Economic Area under the Government's Economic Transformation Programme. It aims to transform the rivers running through the heart of Kuala Lumpur by undertaking river rehabilitation, beautification of riverbank and river corridor development.

The ROL project entails the rehabilitation of the Klang and Gombak Rivers, and the beautification works on an initial 10.7km stretch.

Ekovest said the PDP project would not have an immediate effect on the company's earnings per share and net tangible assets for the current financial year ending June 30, 2012, but it was expected to contribute positively to the future earnings of the company.

In February, MRCB announced to Bursa Malaysia that the Ekovest-MRCB joint venture had received a letter of intent from the Government for the ROL project.

The following month, MRCB and Ekovest signed an agreement to set up a joint-venture company known as KL Bund Sdn Bhd to undertake the ROL project.

Kuala Lumpur Mayor Tan Sri Ahmad Fuad Ismail was reported in August as saying said the PDP would not be allowed to bid for government land near the Klang River as long as the joint-venture company remained the Government's partner in the upgrading of the river.

He said this was due to its competitive edge over others, given that it had access to information in its role as PDP.

By The Star

Ekovest and MRCB in River of Life venture

KUALA LUMPUR: Malaysian Resources Corp Bhd and Ekovest Bhd says Ekovest-MRCB JV Sdn Bhd signed a project delivery partner pact with the government for the River of Life development.

The companies said he venture will earn one per cent of the total estimated River of Life project cost and enjoy monetary incentives

By Business Times