MIDF maintains 'neutral' call on WCT’s stock

This is despite the property developer receiving Vietnamese government's approval to undertake a residential and commercial development in Ho Chi Minh City.

MIDF Research has maintained “neutral” call on WCT Bhd, despite the property developer receiving approval from the Vietnamese government to undertake a residential and commercial development in the capital city.

Two days ago, WCT told the stock exchange that its unit WCT (S) Pte Ltd was awarded an Investment Certificate to develop a 4.6ha plot at Saigon South in Ho Chi Minh City.

The 70:30 joint venture between WCT and the Vietnamese government’s Southern Land Corp will see WCT setting aside an initial charter capital of US$25.2 million (RM79.88 million).

MIDF said it is sceptical on the execution as back in 2008, WCT was awarded a contract to build Platinum Plaza, the largest shopping mall in Ho Chi Minh City. Yet, up until now, that project is still not contributing to WCT’s income.

“The property market in Vietnam is unstable as the country is still facing high borrowing costs and inflation,” the research house said in its notes to investors.

MIDF estimates that WCT’s share price might settle at RM2.20 from the current RM2.32. It derived the RM2.20 target price by ascribing a price to earnings ratio of 9.6 times.

By Business Times

Mah Sing files suit over project

PETALING JAYA: Property developer Mah Sing Group Bhd has taken legal action to restrain Asie Sdn Bhd and Usaha Nusantara Sdn Bhd from making deals concerning a 4.08-acre leasehold parcel along Jalan Tun Razak, Kuala Lumpur.

Mah Sing told Bursa Malaysia that it had filed a summons on Tuesday at the High Court to apply for an injunction concerning the joint venture land.

Leong: ‘We shall make further announcements when more details are available

On Aug 2, Mah Sing had entered into a 60:40 joint venture with Asie to develop the parcel into a mixed development, tentatively called M Sentral, with a gross development value of RM900mil.

Mah Sing would pay RM106.6mil for the parcel, to be settled via 60% cash and a 40% stake of the joint venture company to Asie.

Usaha Nusantara is a wholly-owned subsidiary of Asie, which is the concession holder for 58 acres of leasehold land slated for urban regeneration under the Blue Corridor policy of Kuala Lumpur City Plan 2020.

The 58-acre land includes the joint venture land, which is part of the urban regeneration area of the Tunku Abdul Rahman flats or popularly known as the Pekeliling flats.

However, Asie has taken the position that the joint venture agreement had lapsed on Dec 2 given that certain conditions precedent (CP) in it were not met.

Mah Sing, however, maintained that the agreement had not lapsed, given that they had waived certain CP.

In a statement to StarBiz, Mah Sing group managing director and group chief executive Tan Sri Leong Hoy Kum said: “Mah Sing has exercised its rights as provided in the joint venture agreement to waive the CP and proceeded with the transaction, and has also filed a civil suit for specific performance on the CP. We shall make further announcements when more details are available.”

Property analysts said the potential loss of the joint venture deal would not have a significant effect on Mah Sing.

“The proposed M Sentral project is not really big when compared with some of Mah Sing's projects in the pipeline,” said a bank-backed analyst.

Kenanga Research said in a recent note that if the project did not go through, there was no material impact on its financial year 2011 - 2012 net income of RM160mil to RM204mil as the project's significant contribution would only commence from FY13 onwards.

“We would be disappointed if the project fell through as we thought it would give the group an opportunity to tap on to other parts of the River of Life project and enlarge its war chest of landbanks.”

Meanwhile, Leong pointed out that presently, Mah Sing had a remaining landbank of 1,070 acres with GDV of RM13bil.

“Together with unbilled sales of RM2.14bil, this should last us five to seven years. We will also be looking out for more good landbank in 2012 and are keen on both privately held land as well as government land that will be developed by the private sector, so that we can continue to enjoy longer term momentum and sustainable growth,” he added.

By The Star

WCT unit in Ho Chi Minh City project

KUALA LUMPUR: WCT Bhd says its unit WCT (S) Pte Ltd will undertake the residential and commercial development project in Ho Chi Minh City in Vietnam.

The project is located at the development corridor of Nguyen Van
Linh Expressway at the New Urban Development Area of Saigon South.

In a filling to the stock exchange yesterday, WCT said the project is earmarked for the development of mid-high-class residential apartments and commercial properties for the purposes of lease and/or sale.

“With a plot ratio of six, the project is planned for commercial shoplots and condominium units complete with a garden and full-fledged facilities for modern living,” the company added.

By Business Times

US rental demand lifts housing sector

WASHINGTON: Brian Keith is busier than ever as the architecture firm he works for rushes to wrap up work on a 300-unit apartment complex in Dallas.

The project is one of dozens the firm, JHP Architecture, has on its hands a surge of business driven by a rise in demand in the United States for rental properties.

The increased demand has forced JHP to expand, and it expects to keep hiring at least through the first quarter.

“We're seeing overall work come back and there's a backlog of contracts to go through,” said Keith, director of urban design and planning at JHP.

“There's strong interest in multi-family units and plenty of pent-up demand.”

With US unemployment at a lofty 8.6%, home foreclosures rising and property prices under pressure, more and more Americans have given up the dream of owning, opting instead to rent, a shift that is remaking the face of the US housing industry.

The percentage of Americans who own their home dropped from a peak of 69.2% in late 2004 to a 13-year low of 65.9% in the second quarter.

It edged up to 66.3% in the third quarter of this year.

On the flip side, the percentage of rental properties that are empty fell to 9.8% in the third quarter from 10.3% a year earlier.

In a recent report, Oliver Chang, an analyst at Morgan Stanley, dubbed 2012 “The Year of the Landlord.”

“Rents are rising, vacancies are falling, household formations are growing and rental supply is limited,” the Morgan Stanley report stated. “We believe the demand for rental properties will continue to grow.”

Groundbreaking for new housing jumped 9.3% in November to the highest level in 19 months, fuelling optimism that the battered housing market was regaining its footing.

The gains, however, were almost solely in multi-family housing. Groundbreaking for structures with five or more units shot up more than 30% from October to now stand at nearly double the year-ago level.

By Reuters

Buyers storm project site

BUYERS of the problematic Ukay Bistari mixed-development project took matter in their own hands and marched into the site office to get the keys to their units.

The property owners brought the steel barrier down and entered the compound to see their units, something they have been yearning to do for years.

About 100 protesters gathered to express their disappointment and anger against the developer of the project.

The protesters, who were also members of the Abandoned Property Owners Malaysia (Victims) Association, were promised keys to their units in Block A on Dec 27.

Losing patience: Barriers to the site were brought down by buyers.

However, Victims chairman Dr Mohamed Rafick Khan Abdul Rahman announced they would receive the letters of vacant possesion soon. The keys were then returned to the site office.

Dr Rafick said the developer had to ensure that the project was completed on time and not keep quiet about the matter.

“The buyers are desperate and 27 of them have to file for bankcruptcy. The developer has taken money from the people and they have to own up.

“It would seem the developer is not serious about keeping to their promise because there are only 80 workers left at the site from the 300 four months ago,” he said.

He added that the state government had not done much to help the victims of abandoned housing projects compared with the Housing and Local Government Ministry.

Self-employed Mohd Faizal Jaafar, 32, has been waiting to move into his own home since 2006 but it is still a dream.

Which is which?: Purchasers sorting out the keys to the units.

“I have gone through a divorce and remarried but I have yet to have my own place. I bought the unit in 2003 thinking this will be where I start my family.

“I am sad this has happened but as buyers we cannot just sit and wait. We have to do something. I hope the ministry will revoke the developer’s licence and get someone else to take over the project,” he said.

According to the developer’s spokesman, the letters of vacant possession were out as promised.

She said there was no need for the purchasers to behave in an uncivilised manner by taking the keys themselves.

“Their action is considered trespassing and they have even brought down the hoarding. If there is damage to the property, who is going to bear the cost?” she asked.

She added they had filed a police report on the incident.

Housing and Local Government Minister Datuk Datuk Seri Chor Chee Heung had said that 600 units from 1,172 apartment units would be handed over while the remaining would be handed in December and February next year. This involved Block A, E, and E.

Ukay Bistari in Ampang consists of 2,214 mixed-development units with double and two-and-a-half storey houses, low-cost apartments, service apartments as well as shops and office lots.

It was reported that the project was launched in August 2003 scheduled to be completed between August 2005 and June 2007.

A total of 353 double-storey houses were completed in October 2006 while another 103 units were completed in May 2008.

By The Star

Several projects in Kuala Lumpur still in limbo

Abandoned: The stalled Plaza Rakyat project.

ANOTHER year has passed and there seems to be much uncertainty over numerous projects in Kuala Lumpur.

One of the most talked about is the plan to develop one of the oldest Malay settlements in the capital, Kampung Baru.

The few changes that had been done this year were the upgrading of Jalan Raja Abdullah and Jalan Raja Abdul Aziz, as well as the drains and roads, after decades of attempts to redevelop the area.

Kampung Baru is a 110-year-old settlement made up of seven villages, covering 90.2ha, with about 35,000 residents.

The bulk of it is under Malay reserve land. There are about 4,300 owners.

Set aside as a Malay Agriculture Settlement reserve on Jan 12, 1900, it is one of the last remaining sites in the city with distinctive Malay traditional houses and way of life.

After several attempts to kick-start the plan to develop the settlement, the Kampung Baru Development Corporation Bill 2010 was tabled for first reading by Federal Territories and Urban Wellbeing Minister Datuk Raja Nong Chik Raja Zainal Abidin in December last year.

The move, however, irked residents including the Kampung Baru Development Association who claimed that they were not consulted before the bill was tabled.

Problems cited by the residents included the immunity of the Kampung Baru Development Corporation and representatives of the landowners in the corporation.

A consensus was finally reached between the Federal Territories and Urban Wellbeing Ministry, Kuala Lumpur City Hall (DBKL) and representatives of stakeholders in June.

The representatives of the stakeholders included the Kampung Baru Malay Agricultral Settlement board of management, Kampung Baru Development Association and Kampung Baru Malay Children’s Welfare Association (Pakam).

Nong Chik at that time said the representatives had agreed to a comprehensive development in the area by the corporation and government-linked companies.

Only after months of meetings and consultation with the residents, a new amended Kampung Baru Development Corporation Bill was tabled, debated and passed during the Dewan Rakyat sitting in October this year.

The three most important issues amended in the bill were revoking the immunity of the Kampung Baru Corporation, retaining the Malay Agricultural Society and introducing a new post of deputy chairman for the Kampung Baru Development Corporation that will include a landowner.

With the bill now passed, it is only expected to be gazetted by the first quarter of next year, paving the way for the setting up of Kampung Baru Corp after numerous hiccups along the way.

Another project which has been in limbo is the Keramat Mall, a project that has stalled for a number of years now.

The four-storey market complex with a food court, bank and post office was completed last year at RM49mil.

Traders at the Keramat wet market nearby were asked to move into the new mall but they refused to do so, citing several problems.

The traders were unhappy with the design of the building as well as the lots and have asked for a nearby building to house just the wet market.

The project faced more trouble as landowners of the proposed building refused to move, citing insufficient compensation from Kuala Lumpur City Hall (DBKL).

Recently, Nong Chik said a new deadline would be given to the traders to move.

He added that the traders did not want to move because they were afraid of losing their customers, but eventually they have to move.

The Plaza Rakyat is another project that’s turning into an eyesore.

The RM70mil mixed-commercial development near the Puduraya bus station was left half-completed about 15 years ago when the developer ran into financial difficulty.

Many of the buyers have pressured DBKL to solve the problem, however, nothing has been done so far to revive the abandoned project.

Nong Chik had earlier said a new developer would be appointed by the Economic Planning Unit through an open tender, after the deal with the original developer was terminated.

However, so far nothing has been announced on the plan to revive the project.

The authorities need to come to a quick solution to solve the problems in these projects that have been in limbo for so long.

By The Star

Property: Klang Valley elite enclaves in the making

With the rise of luxury property developments all over the Klang Valley, picking the next elite residential address may not just be confined to paying over RM1,000 per sq ft.

While elite enclaves like Bukit Tunku, Taman U Thant as well as certain sections of Damansara Heights may offer snob appeal to wealthy property buyers, such neighbourhoods may not necessarily have everything that today's lifestyle expectations demand. For instance, iconic architecture and integrated facilities.

Residential property specialist Chan Ai Cheng picks several upcoming developments that will shape up to be elite residences when completed.

Chan Ai Cheng: Iconic design by distinguished architectural firms is a must for landmark developments

“The overall concept is important,” said Chan, who is S.K. Brothers Realty Sdn Bhd general manager. And for top places to live in the near future she cites:

Symphony Hills (Cyberjaya) by UEM Land Bhd

KL Metropolis by Naza TTDI group

KL Eco City by SP Setia Bhd

Bangsar South by UOA Holdings Bhd.

Today's discerning property buyers, she explains, will look at developments that offer a modern lifestyle concept with a combination of desirable factors lush greenery, iconic design by distinguished architectural firms and high quality material.

“The right mix of products such as an integrated development combining residential with commercial and retail property is another attraction,” said Chan.

“The convenience of the place itself, that is, being self-contained with a concept that combines life, work and play' as well as easy access and connectivity to other locations would be another significant factor.”

She points out that when it comes to inspiring developments, the futuristic enclave of Cyberjaya will be one of the best places to live.

“Cyberjaya offers selected developments that are beautiful in concept and way of life such as the Symphony Hills development,” said Chan.

Developed by UEM Land, Symphony Hills is a mixed strata project that forms part of a development spanning 98 acres.

Located near the Multimedia University, UEM Land plans to build 2,865 residential and commercial units with a gross development value (GDV) of RM1bil within eight years.

KL Metropolis

Touted as KL's new international trade and exhibition district, KL Metropolis spans 75.5 acres and reportedly involves a GDV of RM15bil. The project will house the new Matrade Centre and other building components.

To be ready by 2016, the Matrade Centre will cover 13.1 acres while the remaining 62.4 acres would be developed in three phases over 15 years.

The whole development is expected to be completed by 2025. The first phase include residential and office towers as well as a regional retail centre scheduled to be ready by 2015.

KL Eco City

KL Eco City is developed by SP Setia through its subsidiary KL Eco City Sdn Bhd. Involving 25 acres of leasehold land, the project with a GDV of RM6bil comprises an integrated, mixed-use development. It is estimated to take 10 years to complete.

The master plan is by Jerde Partnership International USA in partnership with local architectural firms GDP Architects Sdn Bhd, BEP Akitek Sdn Bhd and GRA Architects Sdn Bhd.

Bangsar South

Bangsar South is another integrated, high-density development with residential and commercial properties.

Besides its central location at Kampung Kerinchi next to the Federal Highway, this 60-acre development by UOA Holdings boasts of excellent Internet and transport connectivity.

Launched in 2007, it will take about 10 years to complete. Total GDV is RM2.5bil.

By The Star

The Pudu Jail transformation

The decision to transform the Pudu Jail site into a prominent landmark in Kuala Lumpur has set tongues wagging among industry observers and experts within the local property scene.

The project, better known as the Bukit Bintang City Centre (BBCC), was initially set to be an integrated mixed development but is now slated to become a vibrant transport hub. Regardless of what it will become, the question at the end of the day remains the same do we really need it?

It should be noted that BBCC, should it be turned into a commercial centre, will have to compete with not just existing, thriving developments in the vicinity such as Berjaya Times Square, but also potential projects in the near future in and around the Kuala Lumpur Golden Triangle area.

It also has to cope with mammoth projects a little outside the city centre such as the KL Metropolis by Naza TTDI Sdn Bhd that will add millions of square feet of office, retail and residential space. In addition, there is competition from the ongoing KL Sentral project and the recent launch of the KL International Financial District.

Other projects in the pipeline include Menara 3 Petronas, Menara Binjai, Menara Worldwide and Permodalan Nasional Bhd's proposed 100-storey Menara Warisan Merdeka.

Commercial value

“With many developments coming up, this project (BBCC) will face some competition,” says Elvin Fernandez, managing director of property consultancy firm Khong & Jaafar Sdn Bhd.

Elvin: ‘It will take a lot of good planning and execution, (and) if a project is well placed and you add more space, it makes things better.’

He however adds that BBCC is strategically located and has the potential to be successful.

“It will take a lot of good planning and execution. Astute management plays a big part. Lots of research and correct decisions from day one this is the stuff of success. But it cannot be underestimated what needs to be done.”

Elvin does not think that BBCC will “steal the crowd” from the Berjaya Times Square area.

“I doubt it will steal the crowd from there. In fact, I think it will enhance Berjaya Times Square. If a project is well placed and you add more space, it makes things better.”

Elvin notes the Government's need to make Kuala Lumpur a liveable city which is one of the twelve Key Economic Areas (NKEA) identified under the Economic Transformation Programme (ETP).

“The ETP and emphasis on making KL a liveable city is a property-dependent policy. You need to look at all projects and not just one in isolation. Sufficient demand must be created to receive the supply.”

Soo: ‘There is a possibility that the 100-storey (Menara Warisan Merdaka) tower could take up all of the demand and vacuum clean the market!’

Depending on how the development is planned, CB Richard Ellis Malaysia managing director Allan Soo reckons that new supply of space at BBCC could be either a boon or a bane.

“The question is what kind of commercial space will be offered. Take the 100-storey (Menara Warisan Merdaka) building as an example. On one hand, having a 100-storey tower nearby justifies having more commercial space.

“However, there is also a possibility that the tower could take up all of the demand (for commercial space) and vacuum clean the market! So the success rate is 50-50.”

The development of the former Pudu Prison was first unveiled by Second Finance Minister Datuk Ahmad Husni Hanadzlah in May last year. Back then, the plan was to redevelop the land into a mixed development project that would comprise a 33-storey office tower, shopping complex, 43-storey hotel and 44-storey serviced apartment.

UDA Holdings Bhd is the project's master developer. The company was recently issued a directive by its shareholder, the Finance Ministry, to divide the 20-acre land into three plots to maximise the value of the land.

Two plots will given to bumiputra investors to develop, while UDA will develop the one parcel.

Transport hub

Earlier this month, UDA chairman Datuk Nur Jazlan Mohamed said the company's transport consultant had indicated that the site was instead suitable to be redeveloped into a transportation hub and so a big bus terminal is expected to be constructed on the site.

He says the transportation hub will be able to accommodate 200,000 to 300,000 commuters daily and complement the monorail and light rail transit facilities already at the Pudu Jail site.

Nur Jazlan says the transport hub will also help to ease vehicle congestion around Kuala Lumpur's golden triangle area, adding that the terminal will complement the my rapid transit (MRT) and ease commuter travel into the city centre in the future.

VPC Alliance (Malaysia) Sdn Bhd director James Wong points out that there are already a number of transport hubs in Kuala Lumpur.

“We already have KL Sentral and the Pudu Raya bus terminal. You may have to close one if you want to build another.”

One industry observer who requests anonymity says it will not be viable to set up a transportation hub in Pudu.

“Just look at the bus terminal there. It's always congested and the traffic jams in the area are crazy!”

Soo believes that the area can be made into a transportation hub if it is planned properly.

“With the current infrastructure, the current bus terminal is always congested. If we can take it out of that fringe and offer taxi as well as MRT services, it could work.”

Former prison site

Whatever is to become of BBCC, one will eventually have to address the elephant in the room. For over 100 years, the site housed some of the country's most notorious criminals and served as an execution ground for convicts a fact that might not sit well with potential investors and residents, especially the superstitious types.

“If BBCC is to house retail and office space, it might not be a problem,” says Wong.

“However, if the land is redeveloped to comprise residential property, it may affect demand.”

Elvin reckons the “stigma” associated with Pudu Jail will not be a big deal.

“To me, it's not an issue, although to some people, it might be. Ultimately, it's all about perception.”

Soo says it all depends on how BBCC is marketed.

“As long as your rebrand it properly, people will not be reminded of the former prison. Besides, people tend to forget after a while, especially with the newer generation coming into the market.”

Soo also says the project can be marketed to foreign investors and buyers, who are less likely to be concerned with the site's history.

By The Star

1MDB embarks on tender process for KLIFD project

PETALING JAYA: The tender process on major foundations works for the Kuala Lumpur International Financial District (KLIFD) has started, 1Malaysia Development Bhd (1MDB) said.

The Government-owned company had invited contractors to participate in a pre-qualification exercise in the construction and completion of earthwork and excavation works, retaining structure, piling works and related sub-structure works.

Deputy chief executive officer (operations) Datuk Azmar Talib said in a statement yesterday: “This is probably among the largest earthwork, covering the size of about 20 football fields (12ha) and excavating about 20m or about four storeys into the ground.”

Azmar said many activities had been taking place in view of the start of construction in the first quarter next year. Amid this, they are creating and enhancing value to the site.

Acting as the master developer for KLIFD, 1MDB is taking measures in environment management planning to minimise the impact of construction on the surrounding environment.

“As the master developer for KLIFD, we are always conscious of our responsibility to the community. We have sought the guidance and cooperation of Dewan Bandaraya Kuala Lumpur. We have taken proactive steps to submit the Environment Impact Assessment (EIA),” Azmar said.

The EIA is voluntary as the size of the KLIFD development is below 50ha, which is the minimum development size that will call for a mandatory EIA.

The notice of pre-qualification will close on Jan 6. Short listings and invitations to tender have been scheduled to complete by mid-Feb next year.

Azmar said 1MDB sought an inclusive participation by both big and small players. Companies can form joint ventures (JV) or consortium to participate in the pre-qualification.

The JVs can also be between local companies and international companies with locally incorporated operations. This will promote a blend of global and local expertise as well as technology transfer.

1MDB is also developing a Digital Master Plan for a digitally smart financial district, utilising technologies that are smart, intelligent and future proof.

The 30ha development in the Imbi area in between Jalan Tun Razak, Jalan Sultan Ismail and the Putrajaya elevated highway, seeks to create a catalytic pool of world-class players by combining leading financial institutions and top global companies.

By The Star

AEON, Parkson rightly command higher valuations

KUALA LUMPUR: AEON Co (M) Bhd and Parkson Retail Asia (PRA)'s solid price to earnings (PE) ratio shows that good consumer companies in the region rightly command higher valuations.

In its report, OSK Research Sdn Bhd has tagged AEON, which runs the Jusco retail stores, at a higher PE of 15 times to RM8.23.

PRA, which was recently listed on the Singapore Stock Exchange (SGX), currently trades at a 18 times forward PE, it added.

"Although the group posted two consecutive quarters of top and bottom-line year-on-year contractions, AEON still logged in positive revenue and net profit growth in Q3 after reopening its department store in 1 Utama. Since August, the company has been delivering positive profit growth since 1998," it said.

Hence, OSK Research has recommended the stock as a "buy", at a fair value of RM8.23.

It said AEON has new stores in the pipeline. The retailer plans to open two to three outlets next year alone.

"In the next two years, we expect AEON to open one outlet each in Kedah, Johor and Penang, for which the land was acquired in early 2011 (in Kedah and Johor) and in December in Penang," it said.

AEON also plans to penetrate Sabah and Sarawak, where it has no presence, next year. At the same time, the group will maintain its strategy as a residential area mall and will only penetrate small towns.

OSK Research likes AEON's unique business model as a department store-cum-shopping mall operator, which locates its outlets near residential areas and targets the mass market.

It said PRA's higher forward PE than AEON's reflects the former's regional presence and faster growth.

By Business Times

TA Enterprise Q3 profit falls to RM20m

KUALA LUMPUR: TA Enterprise Bhd’s pre-tax profit declined to RM20 million in the third quarter ended October 31 from RM36.5 million in the same quarter last year.

However, its revenue rose to RM173.1 million from RM153.3 million previously.

In a statement to Bursa Malaysia yesterday, TA Enterprise said it recorded lower contributions from both the stockbroking arm and TA Global Group in the current quarter.

It said contributions from its property division would continue to be positive, despite growing uncertainties in the global economic landscape.

By Business Times

Three-storey superlink homes launched

Luxurious: Nautilus, D’Island Residence’s latest three-storey superlink homes are priced from RM1.71mil.

LBS Bina Group Berhad (LBS) launched Nautilus, D’Island Residence’s latest three-storey superlink homes priced from RM1.71mil for land area of 24’ x 80’ and RM1.81mil for the 24’ x 100’ recently.

Inspired by the classic charm of the Nordic region as well as its renowned tradition of minimalist design, Nautilus will appeal to those with a discerning taste for subtlety and understated elegance.

The luxury Superlink homes, each endowed with an authentically Nordic essence, boast a spacious gross built-up area from 4,246sq ft for 24’ x 80’ and from 4,791sq ft for 24’ x 100’, defined by versatile en suite spaces throughout.

Distinctively contemporary in design, Nautilus offers two lavish layout choices with five bedrooms, one utility room and six bathrooms.

The architecture and overall design of Nautilus is characterised by a series of modern, symmetrical forms, enhanced by a subdued colour palette.

The spacious interior of each home is further accentuated with an expansive indoor atrium which allows for an abundance of natural light, illuminating indoor areas and bringing forth a feeling of domestic warmth.

A private roof garden serves as a natural extension into the great outdoors, facilitating spectacular views of the development’s beautifully landscaped surroundings.

The inclusion of a private in-house lift gives residents the ultimate sense of exclusivity.

Explaining the overall concept for the luxury residential development, LBS managing director Datuk Lim Hock San said, “Our idea is to capitalise on the natural terrain and the beautiful 404ha water mass surrounding the 71ha D’Island Residence development. We will use existing landscapes to bring out the best in each launched phase to create a unique experience for every homeowner.”

In addition to exclusive sunrise and sunset views right from their terraces, residents at D’Island Residence will be able to delight in the calm waters and pristine landscaping surrounding their homes.

The serene laid-back atmosphere will provide the foundation for an inspiring way of life, creating a haven for residents to unwind and recharge.

Thus far, all 122 units of Apicalia, D’Island Residence’s first phase three-storey luxury superlink units have been sold.

The recently launched 44 units of Balvia, a series of three-storey semi-detached homes, are already more than 40% sold.

D’Island Residence has an estimated GDV of RM3.6bil and is expected to take five to seven years to complete.

The development’s superlinks, semi-detached and bungalows are scheduled to be launched in 2012.

By The Star

Well connected township

Mah Sing Group previewed its new 91ha township, M Residence@ Rawang for priority registrants recently, with 80% take up of Phase 1 achieved in a single day.

The township which has an estimated gross development value of approximately RM948mil drew some 2,500 registrants since the land was acquired in October.

Good buy: Priority registrants having a first look at M Residence@Rawang.

Registrants were able to confirm their interest for properties in Phase 1 comprising 214 units of 18’x70’ link homes with built up of approximately 1,650sq ft priced from RM360,800.

Phase 2 shall be opened to meet buyers’ demand. This comprises 233 units of 22’x80’ superlink homes with built-up of approximately 2,380sq ft priced from RM558,800.

Mah Sing’s chief operating officer James Bryuns said, “M Residence@Rawang meets the current need for quality housing at accessible entry level. We believe that Phase 2 shall see equally strong interest as we are offering semi-detached layouts in our superlink homes, at link home pricing.”

The 22-footers in M Residence@Rawang have an expansive layout boasting three bedrooms with en-suites on the first floor, whilst the ground floor houses the living room, dry and wet kitchen, a guest room, bathroom and powder room. They also enjoy a generous 10ft yard area at the back.

M Residence@Rawang is well connected and is only 5km from the mature townships of Anggun 1&2@Kota Emerald and 8km from Emerald East and West. It only takes 20 minutes to get to the Rawang toll from Kuala Lumpur (Jalan Duta toll) and Petaling Jaya (Damansara toll).

In terms of distance, it is only 28km from both tolls. From the Rawang toll, it is less than 10 minutes or 10km to the project.

A major road upgrade to turn the road into a dual carriageway from the junction of the Rawang toll to the junction of the main road to Bandar Tasik Puteri is in progress, and shall improve the traffic flow along this road. M Residence@Rawang can also be accessed via the Kuala Lumpur-Kuala Selangor Expressway (formerly known as Latar Highway).

Besides Rawang town itself, the project has a large target market catchment from Kuala Lumpur, Petaling Jaya, Shah Alam, Bukit Jelutong, Subang Jaya, USJ, Kepong and Selayang who are looking for an affordable alternative in a well connected location.

Furthermore, there are large catchments of upgraders from Batu Arang, Kundang, Kuang, Sungai Buloh, in search of new township schemes offering a lifestyle concept.

Bukit Badong Forest Reserve is located next to M Residence@Rawang and extensive green reserves namely Templer’s Park, Kanching Forest Park and Commonwealth Forest Park are all within the radius of 15km of the project.

By The Star

Property market to see a gradual slowdown next year

KUALA LUMPUR: The Malaysian property market is likely to see a gradual slowdown next year, taking into consideration the uncertainty in the global economic situation.

Fiabci Malaysia president Yeow Thit Sang said the high end residential units were already seeing a slowdown both in pricing and take-up rate.

“There are fewer expatriates from multinational companies coming here and rentals with a yield of between 6% and 8% are no longer achievable. Investors in these units will have to wait longer to realise their investment. The slowdown in global economy is definitely affecting the high-end property market,” he told Bernama recently.

He also saw a fallout for office space next year, saying the category was already overbuilt and the overhang felt in the market with rental falling and a slow take-up rate.

Meanwhile, Zerin Properties chief executive officer Previndran Singhe said the slowdown in the property market would only last until the first quarter next year and the industry would be stable afterwards.

“Prices will remain stable, with asking prices, not values, becoming more reasonable as owners check their values to real pricing. At present, sentiment is down due to the eurozone financial crisis and the US double dip fears, which has been faring for a long time, but I think we are more Asia focused,” he said.

By Bernama

HK ‘Superman’ swoops on another mall

Li Ka-shing-owned Cheung Kong Group is buying The Citta, the new suburban mall in Ara Damansara

The Cheung Kong Group, owned by Hong Kong tycoon Li Ka-shing, is buying The Citta Strip Mall for an estimated RM245 million.

Sources told Business Times that the purchase was done through Cheung Kong Group’s ARA Asia Dragon Fund.

Citta, the new suburban mall in Ara Damansara, is 70 per cent-owned by German real estate fund SEB Asset Management and 30 per cent by property developer Puncakdana Group.

“There are a few conditions precedent that have to be met before the deal is completed and one of it is state approval,” a source told Business Times.

Messages left at the office of Mah Siew Sian, the managing director of Puncakdana, were not returned.

The open air shopping mall, with some 424,467 sq ft of nett lettable space, opened for B4business in April 2011.

The mall covers three floors, excluding the basement and rooftop, and has over 800 car park bays.

Tenants in the mall include Harvey Norman, MBO cinema, Pappa Rich, Chili’s, Julia Gabriel, RakuZen and Anjappar Restaurant.

Li, who is in the list of Asia’s richest men, is known as “Superman” in Hong Kong due to his deal-making ability.

His Cheung Kong conglomerate is one of Hong Kong’s biggest property developers and owns the world’s largest operator of container ports, among others.

Cheung Kong’s affiliate, ARA Asia Dragon Fund, bought two properties in Malaysia last year – One Mont’ Kiara in Kuala Lumpur and Aeon Bandaraya Mall Melaka – for a total of RM710 million.

In May, ARA Asia Dragon Fund won the bid for three shopping complexes – Klang Parade in Selangor, Ipoh Parade in Perak and Seremban Parade in Negri Sembilan.

It paid some RM450 million to TMW Asia Property Fund.

By Business Times

Consultants: Right timing for PNB's RM1.74bil London property buy

PETALING JAYA: Permodalan Nasional Bhd's (PNB) reported 350mil (RM1.74bil) purchase of Milton & Shire House building in London is a good move owing to the weak pound sterling and the European economic woes, said property consultants.

The Times reported recently that PNB had bought the 15-floor complex from US-based fund manager Beacon Capital Partners.

The complex is said to have 460,000 sq ft of office space, and houses global law firm Linklaters which is paying RM100mil in rental annually on a lease that expires in 2026.

CB Richard Ellis executive chairman Christopher Boyd said that it was a unique time to buy real estate in London, as traditional major funds from the United States and Europe were not in the market due to the global economic slowdown.

“So you have less competition for buildings like this. The downside risk is minimal as PNB bought the building with a long lease,” he said.

Property consultancy DTZ Nawawi Tie Leung executive director Brian Koh pointed out that London was a global financial and commercial centre, and had some of the most expensive real estate in the world.

“In good times, it is very difficult to penetrate the London market due to high competition for prime properties, which accounted for its low historical yield,” he said.

Koh said the weak pound and the liquidity crunch in Europe, due to the eurozone debt crisis, had made it easier for players from the Middle East, South Korea and Malaysia, among others, to enter the London real estate market at reasonable prices.

The Times said it was the “largest single asset transaction in central London this year”.

It also said PNB was believed to have allocated 1bil (RM4.98bil) for London investments.

The daily quoted PNB president and group chief executive Tan Sri Hamad Kama Piah Che Othman as saying the transaction was “part of a strategic plan in acquiring premium assets in major cities globally after the acquisition of our maiden overseas property, Santos Place in Brisbane last year”.

PNB reportedly bought the upmarket office block in Brisbane for more than A$290mil (RM931mil).

The 37-storey building has 373,508 sq ft of lettable space with about two-thirds of that leased to Australian oil and gas giant, Santos.

A recent StarBiz report quoted sources as saying PNB was looking to invest in properties primarily in London, Sydney, Melbourne and Perth.

PNB's management could not be reached for comments at press time.

By The Star

LBS upbeat on RM800m sales target

LBS Bina Group Bhd (LBS) is confident of achieving RM800 million sales target despite a challenging year ahead.

Managing director Datuk Lim Hock San said strong market demand and competition in the property sector will generate higher value for Malaysian homebuyers.

"We feel this is a positive sign as this creates the opportunity for more innovative and creative products for consumers. Homebuyers will be at an advantage as each investment dollar will generate higher value for them," he said.

Landed property for both affordable homes and high-end homes are expected to be the highlights of 2012 with the rising scarcity of land in urban areas.

Property prices are expected to continue climbing albeit at a lower rate compared with this year.

LBS has a land bank of some 931.5ha worth an estimated gross development value (GDV) of RM9.1 billion.

Lim said the group will launch 13 new projects comprising 2,085 units with a GDV of RM1.5 billion together with some 19 ongoing projects with a GDV of RM562 million.

This includes D'Island Residence, Bandar Saujana Putra, Taman Golden Hills in Cameron Highlands and Bandar Putera Indah in Batu Pahat, Johor.

While focusing on the high-end market, Lim said LBS will continue to offer quality homes in the medium-cost range.

With the implementation of My First Home Scheme and other government initiatives, LBS anticipates this market to contribute 20 per cent to total revenue.

"With our recent rebranding and progressive changes, we will continue to learn and improve throughout the year. Part of that process includes recrui-ting more talented employees to take our growth to the next level," he said.

By Business Times

BLand Q2 net profit higher

KUALA LUMPUR: Berjaya Land Bhd’s net profit rose to RM55.85 million in the second quarter ended October 31 this year from RM43.69 million a year ago.

Group revenue, however, eased to RM988.9 million from RM1.02 billion previously.

The slightly lower revenue was mainly due to the lower property sales registered by its property development business, BLand said in a statement yesterday.

By Business Times

LBS Bina bullish on meeting sales target

Property developer, LBS Bina Group Bhd, is confident of achieving RM800 million sales target despite tough market
conditions.

In a statement today, managing director, Datuk Lim Hock San, said 2012 was expected to be a challenging yet confident year for LBS.

He said My First Home Scheme and other government initiatives would contribute 20 per cent to the group's total revenue.

"Currently, LBS Bina has a land bank of some 920 hectares with an estimated gross development value (GDV) of RM9.1 billion, that will keep it busy for the next few years," he said.

Lim said LBS Bina would be launching 13 projects comprising 2,085 units with a GDV of RM1.5 billion together with some 19 ongoing projects with a GDV of RM562 million.

He expected landed property for both affordable homes and high-end homes would be the highlight next year amid scarcity of land in urban areas.

"At the same time, property prices would continue increasing but at a lower rate compared to this year, especially in a 'central' location," he said.

By Bernama

Tenders for KLIFD project now open

KUALA LUMPUR: 1Malaysia Development Bhd (1MDB) has started a tender process on major foundation works for the Kuala Lumpur International Financial District (KLIFD), where a pre-qualification exercise is currently under way.

The tender invitation is scheduled for completion in mid-February, while the construction is expected to start in the first quarter of next year.

1MDB, is inviting contractors to participate in the construction and completion of earthwork and excavation works, retaining structure, piling works and related sub-structure works.

"This is probably among the largest earthworks, covering the size of about 20 football fields or 12ha, and excavating about 20m into the ground." 1MDB Real Estate Sdn Bhd deputy CEO of operations Datuk Azmar Talib said .

1MDB said the pre-qualification notice, advertised on December 8 2011 in the newspapers, will close on January 6 2012. It is also available at www.1mdb.com.my.

By Business Times