KUALA LUMPUR: Guocoland (Malaysia) Bhd has received conditional approval from the Economic Planning Unit (EPU) for its proposed purchase of a 18.68ha land from Bonds Corp Sdn Bhd.
The acquisition is subject to the condition that Wonderful Space Sdn Bhd (WSSB) has at least 30 per cent Bumiputera equity interest before the transfer of land is affected.
WSSB is seeking clarification from the EPU on the Bumiputera equity condition.
By Business Times
Saturday, February 11, 2012
Friday, February 10, 2012
Foreign developers set to mark presence at Mapex
Mapex chairman Datuk Ng Seing Liong said up to five foreign property developments in Thailand, Australia, the UK and the Philippines are likely to be featured at the event to be held from March 2 to March 4.
To date, companies with projects in Thailand and the Philippines have registered to participate and the organiser, Real Estate and Housing Developers' Association Malaysia (Rehda), is still awaiting confirmation from the Australian participants.
The Thai company will be promoting a property development in the UK as well, he told a press conference here yesterday.
Ng said at least 50,000 visitors are expected at the event, themed "Home and Abroad", which will be held at the Mid Valley Exhibition Centre and "we expect thousands of transactions to take place".
Mapex brings together a wide range of innovative property development, priced above RM240,000, from those under construction to completed projects, as well as offering financing packages for potential purchasers and investors.
He said Mapex will be a useful platform for international participants to showcase their projects to the Malaysian public apart from giving them the opportunity to meet top Malaysian developers.
As for the local players, 81 companies have confirmed their participation showcasing more than 300 housing developments, including Sime Darby, SP Setia, Mah Sing, Malton Bhd, IJM Properties, Lebar Daun Development, Naza TTDI, I&P Group and a few more.
Ng said the property market in Malaysia is still a sustainable industry and based on the country's population, 100,000 new houses are needed annually.
"And Klang Valley is still where the property market is most active, followed by Penang and Johor Baru," he said.
He added that the trend among Malaysians is still towards properties that are landed and in the urban areas, but "these properties are getting scarce and becoming more expensive".
Meanwhile, the second national-level Mapex will be held from October 19 to October 21.
By Business Times
Dijaya aims to launch RM1.1b worth of projects
PROPERTY developer Dijaya Corp Bhd aims to launch RM1.1 billion worth of projects this year after accumulating land for development in the past 18 months.
Last year, the master property developer of Tropicana Golf & Country Resort and Tropicana Indah Resort Homes in Petaling Jaya only launched RM700 million worth of properties.
"For 2012, we are targeting sales between RM650 million and RM700 million. It is a conservative target but we hope to achieve more than that," Dijaya managing director Datuk Tong Kien Onn told pressmen after the company's extraordinary general meeting in Petaling Jaya yesterday.
Last year, Dijaya sold about RM420 million of properties.
"Dijaya will be launching many new projects this year and next year on lands that we have purchased over the last one-and-a-half years.
"The total gross development value (GDV) of these lands works out to around RM28 billion," said Tong, adding that the group's total undeveloped landbank area is 324ha.
Among the projects in the pipeline this year are within its flagship Tropicana project in Petaling Jaya as well as in Subang, Cheras, Johor Baru and Penang.
In the third quarter this year, Dijaya will be launching two new projects in Tropicana Indah Resort Homes, namely Golf Villas and Tropicana Gardens.
The RM1.8 billion Tropicana Gardens commercial centre features SoHo units, offices, service apartments, offices, a hotel and lifestyle retail space.
Dijaya aims to develop 5.6ha of the lakefront project over a period of between six to eight years, and the first phase will involve RM200 million GDV.
In Subang, Dijaya had bought 35.4ha for RM385.5 million in 2010 with plans to build three-storey link, semi-detached and bungalow houses, condominiums as well as commercial development.
Dijaya aims to make a huge footprint in Johor's property market with the second project called Tropicana Danga Cove with a total GDV of RM2.8 billion. The construction of the 10-year project is targeted to commence by first half of this year.
On the horizon, due to the limited landbank within the Tropicana development, Dijaya has plans to develop bungalows, link houses and semi-detached units at Tropicana Cheras and Tropicana Balakong.
The acquired landbank in Sungai Long, Cheras and Balakong have an estimated GDV of RM185 million and RM400 million, respectively.
Yesterday, shareholders of Dijaya approved the company's plans to enter into a joint venture with Ivory Properties Group Bhd to buy and develop a 41.02ha site in Bayan Mutiara, Penang.
Tropicana Ivory Sdn Bhd, 51 per cent owned by Dijaya, will invest RM10 billion in a mixed residential and commercial property project that will keep the company busy for eight to 12 years.
By Business Times
Last year, the master property developer of Tropicana Golf & Country Resort and Tropicana Indah Resort Homes in Petaling Jaya only launched RM700 million worth of properties.
"For 2012, we are targeting sales between RM650 million and RM700 million. It is a conservative target but we hope to achieve more than that," Dijaya managing director Datuk Tong Kien Onn told pressmen after the company's extraordinary general meeting in Petaling Jaya yesterday.
Last year, Dijaya sold about RM420 million of properties.
"Dijaya will be launching many new projects this year and next year on lands that we have purchased over the last one-and-a-half years.
"The total gross development value (GDV) of these lands works out to around RM28 billion," said Tong, adding that the group's total undeveloped landbank area is 324ha.
Among the projects in the pipeline this year are within its flagship Tropicana project in Petaling Jaya as well as in Subang, Cheras, Johor Baru and Penang.
In the third quarter this year, Dijaya will be launching two new projects in Tropicana Indah Resort Homes, namely Golf Villas and Tropicana Gardens.
The RM1.8 billion Tropicana Gardens commercial centre features SoHo units, offices, service apartments, offices, a hotel and lifestyle retail space.
Dijaya aims to develop 5.6ha of the lakefront project over a period of between six to eight years, and the first phase will involve RM200 million GDV.
In Subang, Dijaya had bought 35.4ha for RM385.5 million in 2010 with plans to build three-storey link, semi-detached and bungalow houses, condominiums as well as commercial development.
Dijaya aims to make a huge footprint in Johor's property market with the second project called Tropicana Danga Cove with a total GDV of RM2.8 billion. The construction of the 10-year project is targeted to commence by first half of this year.
On the horizon, due to the limited landbank within the Tropicana development, Dijaya has plans to develop bungalows, link houses and semi-detached units at Tropicana Cheras and Tropicana Balakong.
The acquired landbank in Sungai Long, Cheras and Balakong have an estimated GDV of RM185 million and RM400 million, respectively.
Yesterday, shareholders of Dijaya approved the company's plans to enter into a joint venture with Ivory Properties Group Bhd to buy and develop a 41.02ha site in Bayan Mutiara, Penang.
Tropicana Ivory Sdn Bhd, 51 per cent owned by Dijaya, will invest RM10 billion in a mixed residential and commercial property project that will keep the company busy for eight to 12 years.
By Business Times
Property market to see 10% growth this year
KUALA LUMPUR: The property market is expected to see 10 per cent growth in transaction value this year from over RM40 billion last year, according to property consultant CH William Talhar & Wong Sdn Bhd.
Managing director Foo Gee Jen said the growth is slightly lower compared to 11 per cent last year, adding the appreciation in market value is mainly driven by cost rather than demand.
"The higher land value, shortage of labour and rise in building material prices rather than buyers' demand prompted our forecast value," he said.
He said the property market would stay buoyant on the back of the strong housing property segment, with the growth mainly contributed by demand from the young population.
Speaking at a media briefing on the outlook for the property sector today, he said office rentals would remain stagnant or decline for older buildings but there would be higher asking rentals for newly completed buildings with green certification and Multimedia Super Corridor status.
With over 0.74 million sq m of new office space expected to enter the market this year, there will be a very competitive office leasing environment, he said.
"Hence, older buildings will face pressure from declining occupancies as tenants seek newer, better quality offices," he added.
For the condominium sector, Foo said luxury condominiums could face the threat of oversupply in the future. On new non-landed developments, he said a total of 13,716 units in 47 developments are currently under construction, with about 2,900 units to be completed this year.
"With the average occupancy rate at 68 per cent, this gives some pressure on the developers, whose current focus is more on smaller and more affordable unit sizes of 46.5 to 93.0 sq m," he said.
Selling prices range from RM9,136 to RM21,520 per sq m in the KLCC area, and RM7,532 to RM10,760 per sq m in the Mont' Kiara/Sri Hartamas and Kenny Hills areas, he added.
However, he said, sales of new housing developments are expected to be sustained this year due to the low interest and unemployment rates and attractive financing packages.
He said the take-up rate will be maintained at last year's rate, with the House Price Index at 11.4 per cent for Kuala Lumpur and 9.6 per cent for Selangor.
"Last year, the landed residential sector showed strong movement on the supply side while demand was correspondingly positive, with most new launches recording high sales rates of between 60 and 70 per cent," he added.
By Bernama
Managing director Foo Gee Jen said the growth is slightly lower compared to 11 per cent last year, adding the appreciation in market value is mainly driven by cost rather than demand.
"The higher land value, shortage of labour and rise in building material prices rather than buyers' demand prompted our forecast value," he said.
He said the property market would stay buoyant on the back of the strong housing property segment, with the growth mainly contributed by demand from the young population.
Speaking at a media briefing on the outlook for the property sector today, he said office rentals would remain stagnant or decline for older buildings but there would be higher asking rentals for newly completed buildings with green certification and Multimedia Super Corridor status.
With over 0.74 million sq m of new office space expected to enter the market this year, there will be a very competitive office leasing environment, he said.
"Hence, older buildings will face pressure from declining occupancies as tenants seek newer, better quality offices," he added.
For the condominium sector, Foo said luxury condominiums could face the threat of oversupply in the future. On new non-landed developments, he said a total of 13,716 units in 47 developments are currently under construction, with about 2,900 units to be completed this year.
"With the average occupancy rate at 68 per cent, this gives some pressure on the developers, whose current focus is more on smaller and more affordable unit sizes of 46.5 to 93.0 sq m," he said.
Selling prices range from RM9,136 to RM21,520 per sq m in the KLCC area, and RM7,532 to RM10,760 per sq m in the Mont' Kiara/Sri Hartamas and Kenny Hills areas, he added.
However, he said, sales of new housing developments are expected to be sustained this year due to the low interest and unemployment rates and attractive financing packages.
He said the take-up rate will be maintained at last year's rate, with the House Price Index at 11.4 per cent for Kuala Lumpur and 9.6 per cent for Selangor.
"Last year, the landed residential sector showed strong movement on the supply side while demand was correspondingly positive, with most new launches recording high sales rates of between 60 and 70 per cent," he added.
By Bernama
'Fully developed resort city by 2018'
The resort city, which opened its doors two years ago, currently has a water theme park but more attractions are expected to be added soon.
"We are looking at adding a safari park, an aquaria and an adventure park, " said Sentoria Group Bhd joint managing director Datuk Gan Kim Leong after securing a grant of RM6.9 million to develop the second phase of the Bukit Gambang resort city yesterday.
He said the company was looking at starting work on the Bukit Gambang Safari Park as well as additional development under the Arabian Bay Resort, which has an estimated investment value of RM140 million.
On Sentoria's initial public offering, he said the company was expected to raise RM51.6 million, of which RM27.7 million would be allocated for working capital, RM11.2 million for repayment of bank borrowings, RM9 million for purchase of properties, plant and equipment and the balance RM3.7 million to defray listing expenses.
Applications for Sentoria's IPO will be closed at 5pm today and the company is expected to be listed on the Main Board in the first quarter of the year.
By Business Times
The Wharf set to transform former light industrial area into mini metropolis
CONVERTING and redeveloping an ageing light industrial area into an upmarket resort-inspired residential and commercial enclave is an arduous task, but not an impossible one.
Bolton Berhad, one of Malaysia’s oldest property developers, has proven in its transformation of the 140ha Taman Tasik Prima Puchong over the last 10 years. Taman Tasik Prima has emerged as one of the preferred townships in Puchong on the strength of Bolton’s meticulous planning and innovative product offerings.
The commercial component of the township, The Wharf — a fusion of modern architecture, green and water elements — is set to be the showpiece of suburban Kuala Lumpur. This integrated 3-in-1 commercial development is located at the fringes of a tranquil 81ha lake.
Comprising lakeview apartments, boutique showroom offices and a lifestyle mall inter-connected by intricate, contemporary and environmentally-driven architecture and design, The Wharf is set to transform the former light industrial area into a vibrant mini metropolis and live up to its promise of being the “Neighbourhood Lifestyle Des-tination”.
Bolton’s versatility and innovation has already received international recognition as The Wharf won an award for the Best Mixed Use category for Malaysia at the Asia Pacific Property Awards 2011.
An important factor leading to the impressive take-up rates at Taman Tasik Prima is Bolton’s track record in creating value and capital appreciation for its customers.
When Bolton began developing Taman Tasik Prima, the plan was to achieve RM500mil in gross development value (GDV).
Today, Taman Tasik Prima’s GDV is in excess of RM1bil, with The Wharf commercial development itself being valued at more than RM500mil.
The Wharf is sited on a 6ha tract of commercial land fronting Tasik Prima Puchong and flanked by existing prime landed properties as well as the Bizhub shopoffices.
The project was officially launched on Aug 20, 2010, with the BizWalk comprising 32 units of three-storey boutique showroom offices being the first product to be offered. With a minimum price tag of RM2.2mil and a GDV of RM81mil, BizWalk which boasted a unique design of 25ft wide frontage and each floor being a ground floor, was sold out almost immediately.
Its second product offering, The Wharf Residence was launched on Nov 12 last year.
Tower 8, the first block comprising 334 units offering built-up areas ranging from 795sq ft to 1,173sq ft, was designed with practicality and functionality in mind.
The lakeview apartments offer stylish and comfortable living spaces within a distinctive environment which offer full condominium facilities.
One of its unique features is the large external storage room for each unit, located on the respective floors, which is something that has not been offered before in the Puchong area.
Tower 8, which has GDV of RM120mil, is now 85% sold. The second tower, Tower 18, is now open for registration.
Due to the tremendous response of BizWalk, Bolton launched an innovative 2-in-1 commercial offering called “Flexi Suites” located on Levels 4 and 5 of BizWalk.
The 64 units strata offering is designed to suit the business and lifestyle needs of its intended market, where the owners have the flexibility of renting out, occupying or doing both, hence the 2-in-1 tagline. With an entrance foyer for every unit, and linked to the multi-storey car park giving each unit the feel of being a ground floor unit, the Flexi Suites are also receiving a tremendous response.
The upcoming The Wharf Retail Mall will further strengthen the appeal of The Wharf Residence, BizWalk and Flexi Suites.
The mall, which has 1,296 parking bays, is expected to be completed by 2013. There would be a link bridge from the apartments to the mall, providing integrated convenience to residents.
The Wharf Retail Mall is one of very few malls fronting a lake, and there is ample promenade space for events and alfresco dining.
The mall has already received many enquiries from potential anchor tenants.
This year, the company also plans to launch “Summerhomes”, its last landed lakeview residential development which comprises 58 units of three-storey townhouses and four units of 2½ semi-detached houses with a GDV of more than RM45mil.
Developments around shopping centres tend to appreciate in value due to the convenience, and by virtue of it being located next to The Wharf, Summerhomes is expected to be another hit for Bolton.
By The Star
Johor in RM80bil joint venture with Lim to build waterfront city
JOHOR BARU: Johor Baru's coastline fronting Singapore is in for a major transformation that will have a gross development value (GDV) of some RM80bil and led by a joint venture between the Johor state and businessman Datuk Lim Kang Hoo.
A new vehicle called Iskandar Waterfront Holdings Bhd (IWH) is being created and it would be injected with massive landbank hitherto mainly owned by the Johor state and Lim. As a result of these injections, Lim would have 60% of IWH while the Johor state, through its vehicle Kumpulan Prasarana Rakyat Johor (KPRJ), would hold the remaining 40%.
The straight-talking Lim, who granted StarBiz an interview after numerous calls were made to his office, also didn't rule out the listing of IWH.
“We are still preparing for it ... One day it will be listed,” he said at his modest office in downtown Johor Baru.
StarBiz interview with Lim: ‘The partnership we have entered into is driven to enhance the development of the southern tip of Johor which is the gateway to Malaysia from Singapore.’ – By ABDUL RAHMAN EMBONG/Starpic
He said the development would be undertaken over several years and would become a major economic engine of growth for the state.
IWH will oversee the development of the valuable landbank stretching 3,000 acres from west to east of southern Johor Baru to be transformed into an integrated waterfront city.
One of the assets being acquired by IWH was a 33.15% stake in Tebrau Teguh Bhd held by KPRJ. This led to concerns that the state was hiving off its assets to Lim.
“It's a misperception. This is a consolidation exercise to put all the landbank into the holding company. In the end, what KPRJ will have is joint ownership of a much larger pie than what it had before,” he said.
“We and KPRJ are the master developers and we will take charge of the development of Danga Bay, Iskandar Waterfront, Tebrau Coast and the central business district development in Johor.
“To have a project of this size, the need for a strategic partnership with the state is necessary,” Lim said.
The entire waterfront project is part of flagship A of the massive Iskandar Malaysia development, which is spearheaded by Khazanah Nasional Bhd.
“The partnership we have entered into is driven to enhance the development of the southern tip of Johor which is the gateway to Malaysia from Singapore,” Lim said.
A key component of the project is for IWH to attract established world class developers to undertake different parcels. These parties are also expected to part fund the entire development, bringing in the much needed foreign direct investment, said Lim.
“We are aggressively trying to attract more local and foreign developers to invest in Johor. We are not into building townships but we want property developers to be our clients to develop the landbank we have,” he said.
The company has attracted developers such as Dijaya Corp Bhd, Singapore's Azea Residences, Plazzo Hotels & Service, Waz Lian Group, Tune Hotel and Australia's Walker Group.
It has been reported that Dijaya has committed to invest RM3.8bil to build a high-end mixed development while Singapore's Azea Residences will work on four blocks of high-end apartments at a cost of over RM500mil. Australia's Walker Group has also partnered with IWH to develop Senibong Cove into a high-end residential development modelled after the Hope Island project in Australia's Gold Coast.
Lim said the project had received enquiries almost on a daily basis from both local and foreign developers.
“The interest level we see now is nothing like what we have seen in the past 15 years. We are swamped with serious enquiries and over the past year we have seen every developer from Malaysia going to Johor Baru and also some very big names from abroad,” he said.
By The Star
A new vehicle called Iskandar Waterfront Holdings Bhd (IWH) is being created and it would be injected with massive landbank hitherto mainly owned by the Johor state and Lim. As a result of these injections, Lim would have 60% of IWH while the Johor state, through its vehicle Kumpulan Prasarana Rakyat Johor (KPRJ), would hold the remaining 40%.
The straight-talking Lim, who granted StarBiz an interview after numerous calls were made to his office, also didn't rule out the listing of IWH.
“We are still preparing for it ... One day it will be listed,” he said at his modest office in downtown Johor Baru.
He said the development would be undertaken over several years and would become a major economic engine of growth for the state.
IWH will oversee the development of the valuable landbank stretching 3,000 acres from west to east of southern Johor Baru to be transformed into an integrated waterfront city.
One of the assets being acquired by IWH was a 33.15% stake in Tebrau Teguh Bhd held by KPRJ. This led to concerns that the state was hiving off its assets to Lim.
“It's a misperception. This is a consolidation exercise to put all the landbank into the holding company. In the end, what KPRJ will have is joint ownership of a much larger pie than what it had before,” he said.
“We and KPRJ are the master developers and we will take charge of the development of Danga Bay, Iskandar Waterfront, Tebrau Coast and the central business district development in Johor.
“To have a project of this size, the need for a strategic partnership with the state is necessary,” Lim said.
The entire waterfront project is part of flagship A of the massive Iskandar Malaysia development, which is spearheaded by Khazanah Nasional Bhd.
“The partnership we have entered into is driven to enhance the development of the southern tip of Johor which is the gateway to Malaysia from Singapore,” Lim said.
A key component of the project is for IWH to attract established world class developers to undertake different parcels. These parties are also expected to part fund the entire development, bringing in the much needed foreign direct investment, said Lim.
“We are aggressively trying to attract more local and foreign developers to invest in Johor. We are not into building townships but we want property developers to be our clients to develop the landbank we have,” he said.
The company has attracted developers such as Dijaya Corp Bhd, Singapore's Azea Residences, Plazzo Hotels & Service, Waz Lian Group, Tune Hotel and Australia's Walker Group.
It has been reported that Dijaya has committed to invest RM3.8bil to build a high-end mixed development while Singapore's Azea Residences will work on four blocks of high-end apartments at a cost of over RM500mil. Australia's Walker Group has also partnered with IWH to develop Senibong Cove into a high-end residential development modelled after the Hope Island project in Australia's Gold Coast.
Lim said the project had received enquiries almost on a daily basis from both local and foreign developers.
“The interest level we see now is nothing like what we have seen in the past 15 years. We are swamped with serious enquiries and over the past year we have seen every developer from Malaysia going to Johor Baru and also some very big names from abroad,” he said.
By The Star
Hua Yang to set aside RM100mil to expand landbank
PETALING JAYA: Property developer Hua Yang Bhd is setting aside RM100mil to go on a landbank acquisition spree for its financial year ending March 31, 2013, and is aiming to develop projects worth RM800mil to RM1bil in gross developmental value from the land acquired.
“We have set aside RM30mil of our own internal resources as capital expenditure, and is planning to raise another RM100mil to support our plans for land acquisition,” said Hua Yang chief executive officer Ho Wen Yan. However, he said the company had not decided on the specific exercise to raise the amount needed.
Ho said the company spent only about RM56mil last year to expand its landbank as land sales were difficult to complete as bullish market sentiments held back buyers who were holding out for a better price.
Ho: ‘Investors can expect better dividends this year.’
“I hope to secure more land this year, and the money we intend to raise would definitely be done by 2013,” he said.
Besides targeting more land in Penang and Perak, the company is also eyeing land in east Malaysia, especially Kota Kinabalu, Sabah.
Currently, the company has a total landbank of 787 acres worth a gross development value of RM2.4bil.
Speaking on the outlook of the property market, Ho said the affordable housing sector would still remain strong driven by demand of for properties ranging RM400,000 and below. “While other segments of the market might experience some softening especially high end areas in the Kuala Lumpur city centre, and also pockets in the Klang Valley where prices had gone up quicker than the others,” he said.
For its nine-month period ended Dec 31, 2011, the company achieved a net profit of RM39.9mil, an increase of 136% from RM16.9mil when compared with the previous corresponding period. Revenue grew by 82% to RM222.1mil from RM122.1mil previously.
The company is set to deliver another record year as its financial performance for its nine-month period had surpassed what was achieved for the full financial year of 2011.
“Investors can expect better dividends than last year, as based on current results, 2012 will be better than the previous year,” he said.
By The Star
“We have set aside RM30mil of our own internal resources as capital expenditure, and is planning to raise another RM100mil to support our plans for land acquisition,” said Hua Yang chief executive officer Ho Wen Yan. However, he said the company had not decided on the specific exercise to raise the amount needed.
Ho said the company spent only about RM56mil last year to expand its landbank as land sales were difficult to complete as bullish market sentiments held back buyers who were holding out for a better price.
“I hope to secure more land this year, and the money we intend to raise would definitely be done by 2013,” he said.
Besides targeting more land in Penang and Perak, the company is also eyeing land in east Malaysia, especially Kota Kinabalu, Sabah.
Currently, the company has a total landbank of 787 acres worth a gross development value of RM2.4bil.
Speaking on the outlook of the property market, Ho said the affordable housing sector would still remain strong driven by demand of for properties ranging RM400,000 and below. “While other segments of the market might experience some softening especially high end areas in the Kuala Lumpur city centre, and also pockets in the Klang Valley where prices had gone up quicker than the others,” he said.
For its nine-month period ended Dec 31, 2011, the company achieved a net profit of RM39.9mil, an increase of 136% from RM16.9mil when compared with the previous corresponding period. Revenue grew by 82% to RM222.1mil from RM122.1mil previously.
The company is set to deliver another record year as its financial performance for its nine-month period had surpassed what was achieved for the full financial year of 2011.
“Investors can expect better dividends than last year, as based on current results, 2012 will be better than the previous year,” he said.
By The Star
Thursday, February 9, 2012
Dream homes remain a dream
For the property buyers of Alam Perdana Court in Ijok and Casa Gemilang in Gombak, their dream home is still far from reality.
They have laboured through many years to resolve the issues surrounding the projects.
The buyers were caught by surprise that the land in both development was marked for agricultural purpose instead of residential, and this status has left them in limbo until today.
The Casa Gemilang project consists of Desa Gemilang double-storey terrace houses and Casa Gemilang service apartments and townhouses launched in 2003.
Phase 1 of Desa Gemilang ran into trouble over the environmental impact as it was sited next to a slope and encroaching into a forest reserve.
A stop-work order was issued by Selayang Municipal Council in 2006.
Casa Gemilang buyers committee chairman Jaafar Ismail said the developer faced many issues, hence the project dragged on for many years as the company failed to comply with safety standards.
“Unfortunately, according to the Housing Development Act 1966, townhouse comes under commercial development, therefore it does not fall under the purview of the Housing and Local Government Ministry (KPKT) before 2007.
“However, our main question is how did the developer manage to develop a project on agricultural land,” he asked.
Jaafar said 40% of disbursement had been paid out by the bank, which came up to about RM6mil, but there is no construction at the site for Casa Gemilang.
“The project was marked as abandoned by KPKT on Jan 9, 2009 and the ministry had been unable to help us.
“ We want to know what happened to our money totalling RM6mil paid via disbursement, because the project does not seem like it will ever take off based on what we have seen so far,” he said.
“We staged a protest in front of the developer’s office on Jan 18, 2011 as patience was running thin.
“At the time, the developer agreed to return the deposit and payments made for those whose sale and purchase agreement was still valid.
“But the developer tried to get buyers to sign the Deed of Rescission and Revocation that was never referred to the bank and was biased so we advised the buyers not to sign anything,” he added.
For Dr Roslina Ab Wahid, chairman of the Alam Perdana Court bungalow lot purchasers group, her woes began in 2002 when she purchased a lot and the developer failed to pay the premium to develop the land.
The project consisted of bungalows, single-storey and double-storey houses spread over 400ha of land, affecting some 400 buyers. Although part of the development had been completed, the project was abandoned.
“I had purchased a bungalow package worth almost RM100,000 only to find out that it does not belong to me.
“The land was confiscated by the state government in November last year. Now the state government is trying to revive the project and make it livable as it is full of defects.
“The state government said the houses will be delivered in March while the plight of the lot purchasers woudl be looked into after the infrastructure on site is fixed,” said Roslina.
At a recent meeting with the buyers, Selangor Mentri Besar Tan Sri Khalid Ibrahim said the state had paid RM147mil to acquire the land for the stalled Taman Alam Perdana development from developer Ladang Bukit Cherakah Nominees Sdn Bhd (LCBN), so that construction of the houses could resume.
An additional RM40mil was allocated to complete the infrastructure for the project last year.
The Association for Abandoned Building Owners Malaysia (Victims) chairman Dr Mohamed Rafick Khan Abdul Rahman said the root of this problem was the weakness of the Housing Development Act as well as the lack of regulation and enforcement by the authorities.
He said it was a common practice by developers back then to develop land without conversion, leaving that process till later when construction work was ongoing.
“Since land is a state matter, the state government can impose a deposit payment on developers as a condition if they want to develop any land. The state can determine the value of the land before development commences; should the developer fail, the money can be used for the project.
“In the case of Alam Perdana Court, the state government could have taken legal steps jointly with the buyers or resolved the issue of the bungalow lots immediately by getting the buyers to pay the premium and issue the title,” he said.
By The Star
100% loans but few homebuyers
KOTA KINABALU: Sabahans have yet to tap into the Government’s My First Home scheme that enables young Malaysians to own a home.
The response to the scheme has been lukewarm despite potential buyers being offered 100% loans, Deputy Housing and Local Government Minister Datuk Lajim Ukin said.
He said at the Federal level, the scheme was coordinated by the Finance Ministry through an appointed agency while at state level, it was handled by the state government.
“I am sure the state government has taken proactive steps to get the scheme rolling in Sabah and also impart information about it to the younger generation through various departments and agencies in the state,” he said after attending a ground-breaking ceremony for a mosque in Kampung Melabau, Beaufort, yesterday.
Lajim said under the 2012 Budget, the Federal Government had increased the eligibility of buyers earning from RM3,000 to RM6,000 and also increased the value of houses from RM200,000 to RM400,000.
He said the new eligibility under the scheme had been effective since Jan 1.
He said the scheme was to help the younger generation entering the job market to buy an affordable house.
By The Star
The response to the scheme has been lukewarm despite potential buyers being offered 100% loans, Deputy Housing and Local Government Minister Datuk Lajim Ukin said.
He said at the Federal level, the scheme was coordinated by the Finance Ministry through an appointed agency while at state level, it was handled by the state government.
“I am sure the state government has taken proactive steps to get the scheme rolling in Sabah and also impart information about it to the younger generation through various departments and agencies in the state,” he said after attending a ground-breaking ceremony for a mosque in Kampung Melabau, Beaufort, yesterday.
Lajim said under the 2012 Budget, the Federal Government had increased the eligibility of buyers earning from RM3,000 to RM6,000 and also increased the value of houses from RM200,000 to RM400,000.
He said the new eligibility under the scheme had been effective since Jan 1.
He said the scheme was to help the younger generation entering the job market to buy an affordable house.
By The Star
Developer: We have been victimised by state policy
The developer of Casa Gemilang in Sungai Pusu, Gombak said they have been victimised by the policy of state government, resulting in the project being delayed.
Gemilang Excel Holdings Sdn Bhd administrative manager Azman Rosdi said the company was stuck between a rock and a hard place.
He said the state government had approved the development but it was also one that contributed to the delay factor, thus causing the chain of events.
In July 2006, the developer was slapped with a stop-work order following a landslide in Kampung Pasir.
The order was issued to all development near hillsides, which affected Desa Gemilang and Casa Gemilang.
“We held a series of meeting with the state because we had to meet our deadline by 2008 for the project, but the state upheld its policy. We told them that we buyers are bound by an agreement to about 200 but in the end we had to comply with the order.
“In 2009, we made an appeal and the stop-work order was revoked. We resumed work on the site but the banks did not want to pay the progress claims because of the economic crisis and they said the project was not viable.
“We could not resume construction without any payment, so we had issued a notice to terminate the sale and purchase agreement (S&P) to some of the property buyers.
“The 40% of disbursement money had already been used for site clearing, earthworks and piling. We are still here trying to find a solution to this,” he added.
Azman said the buyers were offered a refund for the project but they had to terminate the earlier S&P.
“We contacted the buyers to sign the Deed of Rescission, which some signed, and the money will be reimbursed within 24 months. We have not received any offer from the state government or agencies pertaining to the project; they told us to just fix the problem,” he said.
Azman also clarified the issue of building on agricultural land, stating that they had filed an application simultaneously to change the land status to residential and bordering under the Land Code Section 124A for Gombak district to the Selangor Land Office in October 2005.
He said if people conducted a search on the status now, the land would still be classified as agricultural because the change would be applicable only when individual titles were given out.
“We have paid the premium for the land and the state government then had approved the change of land usage on Nov 29, 2004. Everything has been done according to the law.
“As for the encroachment into the buffer zone, that was for us to carry out slope-stabilising work and the developer’s land and the reserve were bordering each other.
“We had written to the Forestry Department for permission but no response was ever given even after nine months of waiting, so we went ahead with the works as it was the monsoon season,” he said.
At present, Azman said the company was looking for interested parties who wanted to buy over the project but it had to be done accordingly.
By The Star
Gemilang Excel Holdings Sdn Bhd administrative manager Azman Rosdi said the company was stuck between a rock and a hard place.
He said the state government had approved the development but it was also one that contributed to the delay factor, thus causing the chain of events.
In July 2006, the developer was slapped with a stop-work order following a landslide in Kampung Pasir.
The order was issued to all development near hillsides, which affected Desa Gemilang and Casa Gemilang.
“We held a series of meeting with the state because we had to meet our deadline by 2008 for the project, but the state upheld its policy. We told them that we buyers are bound by an agreement to about 200 but in the end we had to comply with the order.
“In 2009, we made an appeal and the stop-work order was revoked. We resumed work on the site but the banks did not want to pay the progress claims because of the economic crisis and they said the project was not viable.
“We could not resume construction without any payment, so we had issued a notice to terminate the sale and purchase agreement (S&P) to some of the property buyers.
“The 40% of disbursement money had already been used for site clearing, earthworks and piling. We are still here trying to find a solution to this,” he added.
Azman said the buyers were offered a refund for the project but they had to terminate the earlier S&P.
“We contacted the buyers to sign the Deed of Rescission, which some signed, and the money will be reimbursed within 24 months. We have not received any offer from the state government or agencies pertaining to the project; they told us to just fix the problem,” he said.
Azman also clarified the issue of building on agricultural land, stating that they had filed an application simultaneously to change the land status to residential and bordering under the Land Code Section 124A for Gombak district to the Selangor Land Office in October 2005.
He said if people conducted a search on the status now, the land would still be classified as agricultural because the change would be applicable only when individual titles were given out.
“We have paid the premium for the land and the state government then had approved the change of land usage on Nov 29, 2004. Everything has been done according to the law.
“As for the encroachment into the buffer zone, that was for us to carry out slope-stabilising work and the developer’s land and the reserve were bordering each other.
“We had written to the Forestry Department for permission but no response was ever given even after nine months of waiting, so we went ahead with the works as it was the monsoon season,” he said.
At present, Azman said the company was looking for interested parties who wanted to buy over the project but it had to be done accordingly.
By The Star
Pavilion REIT posts RM12.4m Q4 net profit
KUALA LUMPUR: Pavilion Real Estate Investment Trust (REIT) posted a net profit of RM12.4mil for the fourth quarter ended Dec 31, 2011 on revenue of RM22.5mil.
Pavilion REIT was listed on Bursa Malaysia on Dec 7, 2011.
In the notes accompanying its results, Pavilion REIT said gross revenue for the period totalled RM22.5mil and net property income was RM16.3mil.
Management fees and borrowing costs incurred during the period were RM1.2mil and RM2.3mil respectively resulting in income before taxation of RM12.4mil.
Its distributable income for the period under review amounted to RM13.1mil, or 0.44 sen per unit, consisting of realised income of RM12.4mil and non-cash adjustments of depreciation, amortisation of borrowings transaction cost of RM100,000 and surplus cash arising from 50% of manager's management fee payable in units of RM600,000.
By The Star
Pavilion REIT was listed on Bursa Malaysia on Dec 7, 2011.
In the notes accompanying its results, Pavilion REIT said gross revenue for the period totalled RM22.5mil and net property income was RM16.3mil.
Management fees and borrowing costs incurred during the period were RM1.2mil and RM2.3mil respectively resulting in income before taxation of RM12.4mil.
Its distributable income for the period under review amounted to RM13.1mil, or 0.44 sen per unit, consisting of realised income of RM12.4mil and non-cash adjustments of depreciation, amortisation of borrowings transaction cost of RM100,000 and surplus cash arising from 50% of manager's management fee payable in units of RM600,000.
By The Star
Wednesday, February 8, 2012
Plan for RM13b Danga Bay waterfront project
The soon-to-be-launched project is billed as the most exclusive and unique waterfront development in Iskandar Malaysia southern economic corridor over the next five years.
It will spread over 120 hectares at the estuaries of three rivers at the Danga Bay.
The Danga Bay waterfront development is an important component in one of the flagship developments in Iskandar Malaysia.
The site of the mega development is at two small peninsulas opposite the Danga Bay. The peninsulas are almost parallel to Sungai Sku-dai, Sungai Danga and Sungai Melayu.
Five commercial epicentres have been planned for the riverine development combining the best of the east and west cultural heritage which is set to become the jewel in the economic region.
The total project cost for the five epicentres, named The Venice, The Gateway, The Rivera, The Bund and The Fisherman Wharf, are estimated at RM13.4 billion.
The 120ha project is part of the 800ha earmarked for the Danga Bay waterfront development.
The development will be handled by Iskandar Waterfront Holdings Sdn Bhd (IWH).
Lim, who is IWH chief executive officer, said the projects are conceived to inject life into the integrated waterfront development, aiming to attract both tourists and investors.
"We welcome investors to take part in the development, either through joint venture with us, or on their own but based on our masterplan.
"Our products will be totally different from what you would find in Singapore, as our purpose is not to compete with them, but to complement them by offering something which are truly unique so as to attract their interest," Lim told the Business Times at his office here recently.
From what the names suggest, one does not need to travel far to Venice and Shanghai Bund to see the tourist destinations as both will be as near as the doorstep in future.
The Venice is one of the most interesting features in the waterfront developments as it will simulate the real topography and architectural design of the Italian city, which are canals running across rows of Venetian-style buildings.
Among the features in The Venice, which will be turned into a sleepless city, are a riverside promenade, a lifestyle street mall with a waterfront alfresco and entertainment outlets, a lifestyle street mall, hotels, apartments, among others.
The Venice will incorporate several watergates to control water level and quality.
Meanwhile, The Bund will showcase a lifestyle cultural village with water alfresco and entertainment outlets, apartments, hotels, among others.
The Fisherman Wharf is the most expensive project, costing RM3.9 billion and is aimed at complementing the existing tourism products available at the Johor Straits, which are kelongs (offshore fish cages).
Phase one of the project will see the development of apartments and sky villa while phase two will have a maritime museum, a riverfront boardwalk and wharf, and a fish auction plaza, together with hotels and thematic retail shops.
The development will simulate the setting of the fishermen wharfs in Cape Town, Norway and San Francisco, but in a modern architectural setting to reflect the localised culture.
Both The Gateway and the Rivera will have apartments, retail shoplots and hotels at the waterfront.
By Business Times
Seri Chenang Resort draws strong response
SERI Chenang Resort & Spa Langkawi will be the newest addition to the Island of Legends when it opens this Labour Day and if forward bookings are anything to go by, this luxury boutique hotel has proven to be quite popular.
It has managed to secure full occupancy for the months of May, June and July 2012.
This 13-room hotel will be operated by brother and sister team Mohammad Shukor and Norlin Zainal Abidin.
The resort is being developed by SCRL Properties Sdn Bhd on the land belonging to the duo's father Datuk Zainal Abidin.
In 2009, Norlin then aged 35 and her brother 28 took on the challenge to develop and manage the hotel, instead of leaving the land undeveloped.
Norlin, who has only a shopping complex management experience, had then decided to be a hotelier.
Located on a 0.53ha of land on Kuala Chenang River next to the popular Chenang Beach, the investment into the hotel and land is to the tune of RM5 million.
Seri Chenang will comprise of six villas, each designed like traditional Malay houses from different states including Negeri Sembilan, Terengganu, Kedah, Pahang, Malacca and Selangor.
The smallest villa, a one-bedroom unit, measures about 113 sq m for a studio villa and the largest, a five bedroom unit, measures 393 sq m.
"It's set in a traditional style but equipped with modern amenities," she said.
The resort is for anyone who appreciates tradition in today's modern luxury living.
It will be marketed in Europe, Australia, Japan and Korea.
The resort's focus will be on personalised service from pre-arrival to post-departure.
"The general manager will greet each guest at the airport," she said.
Despite an encouraging response in the first three months of operations, Norlin prefers to be cautious about performance in the first year of operations.
"In the first year, we expect to achieve over 50 per cent occupancy and average room rate of RM1,700. In the second year, we are looking at an average occupancy of 70 per cent and an ARR of RM1,900," she said.
The hotel is expected to run at a gross operating profit (GOP) of 50 per cent. The GOP is the cost of doing business or gross revenue (from rooms, food and beverage, laundry or business centre) minus cost of operations (wages, electricity and amenities).
Accordingly, Norlin expects return on investment could take between five and seven years.
In keeping with the Seri Chenang theme, the resort will have a spa, Kayangan Spa, which provides traditional treatments.
While the hotel does not have a beach front, it is a mere five minutes away and there is free shuttle service to and from the beach.
By Business Times
This 13-room hotel will be operated by brother and sister team Mohammad Shukor and Norlin Zainal Abidin.
The resort is being developed by SCRL Properties Sdn Bhd on the land belonging to the duo's father Datuk Zainal Abidin.
In 2009, Norlin then aged 35 and her brother 28 took on the challenge to develop and manage the hotel, instead of leaving the land undeveloped.
Norlin, who has only a shopping complex management experience, had then decided to be a hotelier.
Located on a 0.53ha of land on Kuala Chenang River next to the popular Chenang Beach, the investment into the hotel and land is to the tune of RM5 million.
Seri Chenang will comprise of six villas, each designed like traditional Malay houses from different states including Negeri Sembilan, Terengganu, Kedah, Pahang, Malacca and Selangor.
The smallest villa, a one-bedroom unit, measures about 113 sq m for a studio villa and the largest, a five bedroom unit, measures 393 sq m.
"It's set in a traditional style but equipped with modern amenities," she said.
The resort is for anyone who appreciates tradition in today's modern luxury living.
It will be marketed in Europe, Australia, Japan and Korea.
The resort's focus will be on personalised service from pre-arrival to post-departure.
"The general manager will greet each guest at the airport," she said.
Despite an encouraging response in the first three months of operations, Norlin prefers to be cautious about performance in the first year of operations.
"In the first year, we expect to achieve over 50 per cent occupancy and average room rate of RM1,700. In the second year, we are looking at an average occupancy of 70 per cent and an ARR of RM1,900," she said.
The hotel is expected to run at a gross operating profit (GOP) of 50 per cent. The GOP is the cost of doing business or gross revenue (from rooms, food and beverage, laundry or business centre) minus cost of operations (wages, electricity and amenities).
Accordingly, Norlin expects return on investment could take between five and seven years.
In keeping with the Seri Chenang theme, the resort will have a spa, Kayangan Spa, which provides traditional treatments.
While the hotel does not have a beach front, it is a mere five minutes away and there is free shuttle service to and from the beach.
By Business Times
Johor Premium Outlets attract more brands into Johor Baru
JOHOR BARU: The opening of the Johor Premium Outlets (JPO) late last year has created much interest among many Malaysian shoppers who are still new to the shopping concept.
Southern region representative of the Malaysian Association for Shopping and High Rise Complex Management Jenny Chan said since it was a new shopping format, it would take time for shoppers to adapt and adopt.
She said the luxury premium brand outlet format might not be new for Malaysians who had visited similar outlets overseas, but not for those who had never patronised such outlets before. “JPO is targeting at a specific group of shoppers hunting for reasonably priced quality and branded items,'' Chan said in an interview with StarBiz.
JPO is the only such outlet in South-East Asia, while 58 other outlets are in the United States, one in Puerto Rico, one in Mexico, eight in Japan and two in South Korea.
Among the brands avaialable at JPO are Armani, Burberry, Canali, Coach, Ermenegildo Zegna, Guess, Michael Kors, Ralph Lauren and Salvatore Ferragamo.
The outlet is a 50:50 joint venture between Genting Bhd's subsidiary Genting Plantations Bhd and Premium Outlets, the retail outlet division of Simon Property Group Inc.
Under the second phase of its development, Genting plans to spend RM100mil to increase the number of stores from the present 70 to 130.
The company is also expected to invest up to RM1bil to develop the area, including constructing a 2,000-room hotel together with a water-theme park and a meeting, incentive, conference and exhibition centre.
Chan said unlike in the Klang Valley and Singapore where customers were spoilt for choices when it came to branded fashion items available from shopping complexes, it was not the case in Johor Baru.
She said for many years, Johoreans living in the city would either travel to Kuala Lumpur or cross over to Singapore if they were looking for branded fashion items.
She said the opening of JPO saw many brands making their debut in the Johor Baru retail sector and offered to Johoreans a wider range of brands.
Chan added the format would work well with tourists and Malaysians from other states as well Singaporeans coming to shop at the outlet as it offered attractive bargains and discounts.
She said shoppers would be pampered with original discounted goods with good quality and she hoped that consumers would support genuine luxury products instead of imitation goods.
Asked whether the location of JPO was too remote, Chan said it was typical for Premium Outlets worldwide to operate away from the city centre.
“However, you must remember that this format is destination-bound'; therefore, shoppers will drive there for a different shopping experience,'' she said, adding: “It's better than travelling all the way to Premium Outlets in the United States, Japan or South Korea.”
Chan said Johor's close proximity with Singapore would allow the outlet to tap tourists including those from Australasia, China, India, Europe and Middle East visiting the republic.
Similarly Chan said JPO's presence would not affect other shopping mall business as its product range was totally different from normal shopping malls.
She added that shopping mall tenant mix was based on the target audience needs, especially within 5km radius or up to 10km radius.
By The Star
Tuesday, February 7, 2012
E&O expects to launch wellness-based township in Iskandar early next year
PETALING JAYA: Despite the unending controversies that have beleaguered Eastern & Oriental Bhd (E&O) since last year, the niche property developer is forging ahead with its next flagship development in Iskandar Malaysia.
The Penang-based company is looking southwards to Johor's new growth region to build a wellness-themed township called Medini Integrated Wellness Capital.
Deputy managing director Eric Chan told StarBiz that the project, which is still in its early stages, could be launched as early as next year.
The Wellness Capital, with a gross development value of RM3bil, will occupy 210 acres in Medini, one of the clusters in Iskandar. The land was bought for RM350mil in mid-2011.
Chan said this would be E&O's maiden foray into Johor, and the first of its kind wellness-based township in the region.
“We believe the market is moving in this direction,” he said of the rationale for the focus on wellness, adding that the idea was first mooted by Khazanah Nasional Bhd.
According to Chan, this was not an entirely new concept as there have been similar developments in Canada and other countries.
The project will be undertaken by Nuri Merdu Sdn Bhd, which is a 50:50 joint-venture (JV) between Galaxy Prestige Sdn Bhd, a wholly-owned subsidiary of E&O, and Pulau Indah Ventures Sdn Bhd.
Pulau Indah Ventures is a 50:50 JV between Teluk Rubiah Ventures Sdn Bhd, a wholly-owned subsidiary of Khazanah Nasional, and Aneto Investments Pte Ltd, an indirect wholly-owned subsidiary of Temasek Holdings (Pte) Ltd.
E&O is responsible for the overall project management as well as sales and marketing.
As its partners are the sovereign wealth funds of both Malaysia and Singapore, a working model of the project was presented to the respective countries' Prime Ministers during their leaders retreat in Putrajaya in January.
The Wellness Capital will comprise two main portions the Medini Estate, which is the overall development, and the Medini Sanctuary, its 12.5 acre core. The township is fringed by a natural mangrove forest.
Chan said an operator would be brought in to run the Sanctuary by the end of the year.
“It is too early to throw out their names. We have not identified anyone yet but a few names have come forward. We will do the rounds to visit their facilities after Chinese New Year.
“Of course, Khanazah and Temasek can use their network to help us get the best team on board,” he said.
He added that the residential side would comprise 96 bungalows, 68 semi-detached homes, 445 terrace houses, 1,415 condominium units and one block of serviced apartments. Some 18 acres have been earmarked for commercial property.
However, this was a work-in-progress and the final numbers were subject to change, he pointed out.
In keeping with the wellness theme, Chan said the township might allocate 20 acres for food planting and fish farming.
On its target customers, Chan explained that they would be locals and foreigners above 40 years of age and from the middle-income group.
“Why 40 and above? Because they have typically acquired some capital by that age and can understand the need to spend money to prolong one's quality and active years,” he said.
He stressed that the development would not cater specifically for the “super-rich” and would be affordable to regular wage-earners.
In terms of returns, Chan said the development was expected to generate a 20% to 25% profit margin in two or three years, similar to E&O's previous projects, and begin contributing to earnings two years after its launch.
By The Star
Asian retail property expected to remain bullish
PETALING JAYA: The Asian retail property sector is expected to remain bullish this year with eager international retailers seeking expansion in Asia, lured by the region's growing wealth and tourism potential.
In the biannual Asian Property Outlook and Strategy report, real estate investment house Pacific Star noted that Asian governments had been focusing on developing domestic demand from a structural perspective, which should bode well for the retail sector.
“The long-term Asian consumption story remains as strong as ever. While we have seen the short-term outlook affected by the uncertainties in the global economy, the growth potential for the region remains.
“This is evident in the comments made by global fashion groups with regards to their expansion plans and the growth in earnings from the region,” said Pacific Star research and strategic planning vice president Lam Chern Woon in a statement recently.
He expects this trend to continue and with it, the demand for innovative retail properties to meet the appetite of the growing Asian consumer.
Pacific Star continues to rate the retail property markets in Singapore, Hong Kong, Kuala Lumpur as Tier 1, given healthy labour market conditions, strong tourism throughput and interest from international retailers.
Markets classified as Tier 1 merit serious investment consideration over the coming six to 12 months, while Tier 2 markets are generally attractive although the risks could be considerably higher due to macroeconomic or supply issues.
“While economic uncertainties will exert downward pressure on prime rents in the near term, the correction is expected to be limited, given the favourable supply outlook and buoyant domestic spending in these markets.
“Retail spending has also held up in Asia due to tight labour market conditions and a buoyant tourism sector,” he said.
He said consumers in this part of the world continue to be more optimistic than their counterparts in the United States and Europe as a result of healthy employment.
While the office sector is expected to be impacted by hiring headwinds due to the fallout from the European debt crisis, the group still rates the Singapore office market as Tier 1 for its attractiveness.
“Pre-commitments have been healthy and the city state remains highly favoured as a global and regional business hub due to its political stability and pro-business environment.
“The cyclical nature of the Singapore office market suggests that it could also recover quickly when global conditions turn around,” he said.
On the Malaysian perspective, the group said the office leasing market in Kuala Lumpur was relatively stable with net absorption improving in the second half of 2011, with relatively healthy economy growth this year expected to support office demand.
However, it said rentals would likely remain soft in the near term with supply outpacing demand, and capital values were expected to remain stable as owners were not under pressure to lower their price expectations.
“Over the medium term, we are cautiously optimistic that governmental initiatives to attract multinational corporations to set up their regional headquarters in Kuala Lumpur will help absorb the new supply and support the office market,” he said.
Meanwhile on the residential front, the group expects policy tightening to tail off where in most Asian residential markets, the effects of earlier property cooling measures have begun to adversely impact sales.
“This has translated into lower home prices in Hong Kong and some Chinese cities.
“Mortgage rates across Asia have also started to creep up over the past few months with a detrimental impact on housing affordability,” he said.
By The Star
Emkay sees Belum resort as future profit driver
GRIK (PERAK): Emkay Group, controlled by property magnate Tan Sri Mustapha Kamal Abu Bakar, expects its Belum Rainforest Resort (BRR) in Pulau Banding to be a profit churner for the group in the future.
The BRR project, which is currently being developed, is expected to be fully completed within the next 10 to 15 years.
"This place would be the next profit centre for us in the future," said Mustapha Kamal, who is the group chairman.
The overall development of BRR involves four phases on over 600ha in Malaysia's 130 million-year-old Belum-Temengor rainforest and will boast a gross development value (GDV) of RM639 million.
Emkay has so far completed the first phase in June 2009, while the second phase is under progress and expected to be completed in March next year.
Mustapha Kamal, who founded Emkay Group, said the group has invested about RM100 million for the two phases.
The first phase of the BRR project was built specifically to attract foreign visitors, while the second phase is aimed at attracting more local visitors, he told a news conference last Wednesday.
The Emkay group has allocated some RM29 million for the development of the second phase.
Under the second phase of development, the resort will have a total of 113 rooms, including six kampung-style houses, and new facilities like spa rooms and swimming pool to cater to the growing number of visitors.
By Business Times
The BRR project, which is currently being developed, is expected to be fully completed within the next 10 to 15 years.
"This place would be the next profit centre for us in the future," said Mustapha Kamal, who is the group chairman.
The overall development of BRR involves four phases on over 600ha in Malaysia's 130 million-year-old Belum-Temengor rainforest and will boast a gross development value (GDV) of RM639 million.
Emkay has so far completed the first phase in June 2009, while the second phase is under progress and expected to be completed in March next year.
Mustapha Kamal, who founded Emkay Group, said the group has invested about RM100 million for the two phases.
The first phase of the BRR project was built specifically to attract foreign visitors, while the second phase is aimed at attracting more local visitors, he told a news conference last Wednesday.
The Emkay group has allocated some RM29 million for the development of the second phase.
Under the second phase of development, the resort will have a total of 113 rooms, including six kampung-style houses, and new facilities like spa rooms and swimming pool to cater to the growing number of visitors.
By Business Times
Builders look forward to busy year
Industry observers said builders would welcome the Year of the Dragon with open arms knowing that the sector is likely to perk up after the impending elections at the end of the first quarter of this year.
In the last budget announcement, the government has made known of its intention to boost the construction sector's growth by seven per cent to drive the national economy this year.
It is an ambitious target, especially when the Malaysian construction industry is set to grow by a bullish RM92 billion this year from RM85 billion last year.
Growth declined for the most part of 2011, expanding by only three per cent in the third quarter of as most large scale projects mooted by the government were deferred.
"This (the slowdown in 2011) is attributable to the slower-than-expected rollout of projects. New domestic contracts in the first nine months of 2011 only amounted to RM49.4 billion, which is only 58 per cent of 2010's full year total of RM85.2 billion and 2007 to 2010 average of RM84.7 billion," said Malaysian Rating Corp Bhd (MARC) vice president of ratings Rajan Paramesran.
This, he said, was unlike 2010 which was boosted by the announcement on the Economic Transformation Programme (ETP) and led the construction sector to rebound to 5.6 per cent.
However, the industry is expected to see a fourth quarter boost in construction activities as seen in previous years to elevate the full-year industry growth to around four per cent in 2011.
Hence, economists believe that timely awards and implementation of projects as per the 10th Malaysia Plan (10MP) and the ETP from now will contribute positively to the growth in 2012 as the projects require gestation period in order to generate impact to the economy.
According to Rajan, various packages for the construction of the Greater KL Mass Rail Transit (MRT) line project that have already been tendered out will contribute to the construction sector's performance.
Tender for the largest package, the tunnel works, worth RM8 billion will close by this month and the award is expected to be finalised by middle of this year.
In addition, government funded rural infrastructure development projects, the KLIA 2 project, the Kuala Lumpur International Financial District, and development of he government's Sungai Buloh rubber land, and the Sungai Besi Kuala Lumpur Air Base will provide momentum to the sector, he added.
RAM Holdings Bhd group chief economist Yeah Kim Leng said although the Malaysian economy is expected to moderate this year because of the ongoing eurozone debt crisis, the construction industry is expected to remain well supported by continuing infrastructure-related and property development projects.
"Key pillars will continue to be construction projects earmarked under the five development corridors and the 12 National Key Economic Areas (NKEA), especially the various transportation infrastructure and property-related mega projects planned under the Greater Kuala Lumpur NKEA," he said.
Yeah said the commencement of the mega MRT project and extension of light-rail transit (LRT) systems together with major investments in the oil and gas sector by Petronas, the national petroleum company, in Peninsular Malaysia, Sabah and Sarawak, are expected to boost construction order books.
Entry point projects such as the River of Life project and other iconic projects planned under the Greater Kuala Lumpur NKEA as well as large infrastructure and utilities projects such as the Gemas-Johor Baru electrified double-tracking project are expected to sustain the country's construction activities.
"Start-ups of affordable housing projects under the aegis of the government, continuing medium and high-end housing construction as well as commercial property development projects in the nation's capital as well as in other major cities are anticipated to lend support to the moderately strong pace of construction industry growth anticipated this year," he added.
Apart from the Gemas-Johor Baru double tracking rail project, other new projects that will kick off this year include several highway projects to be implemented under the Second Rolling Plan (RP2).
Among the projects are the Lebuhraya Pantai Timur Jabor-Kuala Terengganu, Lebuhraya Pantai Barat Banting-Taiping, Lebuhraya Segamat-Tangkak and Lebuhraya Central Spine as well as the construction of Kota Marudu-Ranau road.
The RP2 is the government initiative under the 10th Malaysian Plan (10MP) to boost investment with an allocation of RM98.4 billion for 2012 and 2013.
According to Yeah, a further RM978 million would be allocated to accelerate the development in five regional corridors this year.
Among the projects to be implemented are the construction of Johor Baru-Nusa Jaya coastal highway in Iskandar, Johor, heritage tourism development in Taiping in the Northern Corridor, agropolitan scheme in Besut in the East Coast Economic Region, palm oil industrial cluster project in Lahad Datu in Sabah Development Corridor, and Samalaju water supply in the Sarawak Corridor of Renewable Energy.
In the 10MP, the government allocated RM20 billion under the public-private partnerships (PPP) Facilitation Fund that provides a tipping point to assist the private sector develop projects with strategic value.
Of this total, RM18 billion is for high-impact projects, while the remaining RM2 billion is for projects involving bumiputera entrepreneurs.
This year, the government will allocate RM2.5 billion under the fund and an estimated RM300 million is for bumiputera entrepreneurs.
Rajan noted that the private sector will likely play a significant role in construction growth in 2012.
"Furthermore, the government has been emphasising private participation to drive the economic transformation agenda," he added.
A total of 52 projects worth RM62.7 billion have been identified under the new PPP initiative.
The PPP concept would include leases, joint ventures and sale of government land for development, and the normal build-operate-transfer mode.
Project bankability, he said, depends largely on the PPP terms as the private sector has to finance the construction or development and take on the project risks.
Among these PPP projects are seven tolled highways worth RM19 billion, comprising the West Coast Expressway, Guthrie Damansara Expressway, Sungai Juru Expressway and Paroi-Senawang-KLIA Expressway.
Also included are two coal electricity generating plants (RM7 billion) and 1,335 hectares of development in Sungai Buloh (RM10 billion).
However, while the government is banking on the momentum of private investment to enhance the economy in 2012, Rajan said, foreign direct investment (FDI) inflows may be susceptible to the challenging global economic conditions.
Yeah, meanwhile, said that given the one to two years gestation period for FDI projects, the strong pickup in inflows recorded over 2010 and 2011 will translate into start-up of construction activities this year, especially for greenfield projects involving construction of industrial buildings and facilities.
"For 2012, locally owned corporations such as UDA Holdings Bhd and Gamuda-MMC consortium are more likely to be the ones undertaking the major projects," he added.
By Business Times
Monday, February 6, 2012
SPNB will no longer revive abandoned housing projects
KUALA LUMPUR: Syarikat Perumahan Negara Bhd (SPNB), an agency set up to revive abandoned housing projects, will no longer rehabilitate such projects due to a policy change.
Under the latest policy, abandoned projects would be fully managed by the Housing and Local Government Ministry through the Commissioner of Buildings, Managing Director Datuk Dr Kamarul Rashdan Salleh said.
"I understand that the ministry will work with private developers to revive abandoned houses," he told BERNAMA in an exclusive interview.
Kamarul, however, expressed his concern over the escalating costs to restore private developers' housing projects comprising low or medium-low-cost houses because of the requirement to maintain the original house price.
For medium-cost houses, there would be no issue to attract private developers as the price can be set to a competitive level, thus substantial profit can be made, he said.
"Efforts to revive low-cost and medium-low-cost houses do not guarantee lucrative profits. Furthermore, developers will have to put up with spiralling costs.
"If the developers are willing to the risks, I welcome their initiative to do so, but if it is too risky for some developers, then the government has to come up with a workable mechanism to develop abandoned housing projects," he said.
For now, however, Kamarul said the SPNB would start reviving Taman Tangkak Emas and Taman Jasa Amir abandoned projects in Johor next month. The projects have been lying idle since 2005.
Kamarul said while abandoned housing projects exist everywhere in the country, they are significantly prevalent in Selangor, Negeri Sembilan and Johor, where development is taking place at a feverish pace.
Last year, SPNB revived a total of 1,004 units of abandoned houses at Taman Bukit Riah in Pengkalan Hulu, Taman Jalan Intan Pertama in Gerik, Taman Desa Bakti in Machang, Taman Desa Guru in Kuching, Taman Desarina in Kuala Lumpur and Taman Mawar in Kulai.
The SPNB was established on Aug 21, 1997 to provide quality affordable houses for every family in the country.
By Bernama
Under the latest policy, abandoned projects would be fully managed by the Housing and Local Government Ministry through the Commissioner of Buildings, Managing Director Datuk Dr Kamarul Rashdan Salleh said.
"I understand that the ministry will work with private developers to revive abandoned houses," he told BERNAMA in an exclusive interview.
Kamarul, however, expressed his concern over the escalating costs to restore private developers' housing projects comprising low or medium-low-cost houses because of the requirement to maintain the original house price.
For medium-cost houses, there would be no issue to attract private developers as the price can be set to a competitive level, thus substantial profit can be made, he said.
"Efforts to revive low-cost and medium-low-cost houses do not guarantee lucrative profits. Furthermore, developers will have to put up with spiralling costs.
"If the developers are willing to the risks, I welcome their initiative to do so, but if it is too risky for some developers, then the government has to come up with a workable mechanism to develop abandoned housing projects," he said.
For now, however, Kamarul said the SPNB would start reviving Taman Tangkak Emas and Taman Jasa Amir abandoned projects in Johor next month. The projects have been lying idle since 2005.
Kamarul said while abandoned housing projects exist everywhere in the country, they are significantly prevalent in Selangor, Negeri Sembilan and Johor, where development is taking place at a feverish pace.
Last year, SPNB revived a total of 1,004 units of abandoned houses at Taman Bukit Riah in Pengkalan Hulu, Taman Jalan Intan Pertama in Gerik, Taman Desa Bakti in Machang, Taman Desa Guru in Kuching, Taman Desarina in Kuala Lumpur and Taman Mawar in Kulai.
The SPNB was established on Aug 21, 1997 to provide quality affordable houses for every family in the country.
By Bernama
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