UMLand plans RM1.4b projects

UNITED Malayan Land Bhd (UMLand) plans to develop several property projects in the Iskandar development region in Johor with a gross development value of RM1.4 billion over six years.

UMLand director Datuk Syed Ahmad Khalid Syed Mohammed said construction on the mixed development project in Medini, Iskandar, would start soon.

It is targeting local and foreign investors.

"Under phase one, we plan to build commercial properties such as hotel, serviced apartments and retail buildings," Syed Ahmad told reporters here yesterday after inking the deal with Iskandar Investment Bhd.

The latter was represented by its president and chief executive officer Datuk Syed Mohamed Syed Ibrahim.

Syed Ahmad said the company still negotiating with Iskandar on the land size that it could buy for the project.

UMLand chief operating officer Lim Eng Kuan said the proposed investment could boost Medini's attractiveness as an investment hotspot as well as complement its Bandar Seri Alam flagship project within the Iskandar region.

He added UMLand had already bought several parcels of land in the Iskandar region measuring 404.6ha, earmarked for industrial, commercial and residential development.

This will ensure the continuity and growth in the future earnings for the group.

Medini is located within the Nusajaya development zone, which is one of the five flagship developments of Iskandar, touted to be the country's engine of growth in the southern region.

Comprising an area of 902.8ha, Medini is one of Nusajaya's eight catalyst developments.

Others are Johor's new administrative centre, Puteri Harbour, a southern industrial and logistics cluster, Afiat Healthpark, Educity, an international resort and Nusajaya residences.

By Business Times

UMLand eyes Medini

Developer to hold negotiations with IIB on investments in Iskandar

PETALING JAYA: United Malayan Land Bhd (UMLand) will hold negotiations with Iskandar Investment Bhd (IIB) about investments in Medini, Iskandar Malaysia.

The developer said in a filing with Bursa Malaysia yesterday that it had entered into a collaboration agreement with IIB to talk about its proposed investments in the flagship project. Located in the Nusajaya development zone, Medini is one of the five flagship developments and part of the eight catalyst developments of Iskandar Malaysia, in addition to Johor State New Administration Centre, Puteri Harbour, Southern Industrial and Logistic Cluster, Afiat Healthpark, EduCity, International Destination Resort and Nusajaya Residences.

Syed Mohamed: Medini is well positioned to become the central business district in Nusajaya.

IIB president and chief executive Datuk Syed Mohamed Syed Ibrahim said in a press statement that the 2,230-acre Medini is well-positioned and on track to become the central business district of Nusajaya.

“The proposed investment by UMLand, one of the renowned property developers in the local real estate industry, does not only reflect the attractiveness of Medini as an investment hot spot but will add a new dimension to the vibrancy of the lifestyle development,” he said.

UMLand chief operating officer Lim Eng Kuan said that UMLand had been a major player in the Johor property industry since 1990, starting with its first development Bandar Seri Alam.

“Over the years, the group has made concerted efforts in collaboration with the state government and has seeded vast infrastructure and amenities allowing the group to spread its wings further in Johor.

“This can be seen in the group's strong presence in the region with projects in four out of five flagship zones of Iskandar Malaysia,” he said, adding that the group had also acquired several parcels of land amounting to 1,000 acres in the Iskandar region, earmarked for industrial, commercial and residential development.

It was recently reported that Medini's Arab investors would look to dispose of their land over time to other developers.

By The Star

Sime targets RM2.4b sales

SIME Darby Bhd is targeting RM2.4 billion gross sales for the various projects it has in 10 townships for the financial year ending June 20 2012.

Sime Darby Property managing director Datuk Wahab Maskan said the company has already made RM1.2 billion sales in the first half of the financial year.

"We are on track to meet this target," he said after the launch of Sime Darby Property's latest property campaign called "Lifestyle Collection", a showcase of its residential and commercial properties in and around Greater Kuala Lumpur area.

However, in terms of overall contribution to the Sime Darby group's revenue, it will still be maintained at about 15 per cent like in the last financial year, Wahab said.

He said the "Lifestyle Collection" features 1,800 landed and strata properties which include top- selling and newly launched units as well as planned units.

The properties are located in Sime Darby Property's 10 townships in Klang Valley and Nilai in Negri Sembilan which range from the cheapest residential unit in Nilai at RM431,000 to over RM1 million.

Wahab, who is also Sime Darby group chief operating officer, said the conglomerate's property unit is still doing well despite the little consolidation in the luxury segment of the property market.

"It is a bit challenging in the high-end market but we believe it is still reasonably strong, especially in the Greater Kuala Lumpur and Klang Valley areas," he said.

Wahab added that the company's properties priced between RM1 million and RM2 million are still marketable.

"(Properties) above RM2 million may face challenges to sell but we do not have many of those."

On the affordable housing market, he said depending on the approval from authorities, Sime Darby Property can build between 4,000 and 5,000 units a year for five years beginning next year.

"We will build our own units and we can also collaborate with the government's programmes," Wahab said.

He said Sime Darby Property has also plans to look out for property deals in places it has operations like Singapore, London and Australia.

Wahab said in Singapore the company is now working out one or two deals that could be the redevelopment of some old properties or a joint venture with local parties there.

He said Sime Darby Property, which has a total landbank of 14,800ha, is always looking for more local and foreign local acquisitions.

Meanwhile, Wahab said the "Lifestyle Collection" campaign will start today until April 14 at its property gallery in Ara Damansara. From April 14 to April 30, the public can view the products at the respective sales galleries of the specific properties.

Some benefits buyers can enjoy during the period include low initial payment, cash incentives up to RM10,000 and waived stamp duties and legal fees.

He also said properties developed by Sime Darby have high appreciative yields of about 15 per cent a year.

By Business Times

Oriental in project buy-back

PETALING JAYA: Oriental Pearl City Properties Sdn Bhd, a subsidiary of Malaysia Pacific Corp Bhd (MPCorp), will pay for the RM110.8mil buy-back of AmanahRaya Development Sdn Bhd's (ADSB) stake in a development project both parties had earlier agreed to via internal resources, loans or “other strategic investors.”

Ch’ng says any new investors will be decided by MPCorp without the restriction of seeking mutual consent from ADSB

ADSB has since exercised its rights to sell its investment in Johor's LakeHill Resort Development Sdn Bhd where it had a 22% stake, and Oriental, the remaining 78%.

MPCorp chief executive officer Datuk Bill Ch'ng told StarBiz that Oriental would purchase ADSB's stake and that the new investors, if any, would be decided by MPCorp, without the restriction of seeking mutual consent from ADSB.

In August 2008, a joint-venture agreement was entered into between ADSB and property firm MPCorp's wholly-owned Oriental whereby Oriental had granted a put option to ADSB to exercise its rights to sell its entire investment of 22% in LakeHill Resort Development to MPCorp on or before the expiry of the option period on Jan 31 this year.

The expiry date of the option period was then extended to Wednesday.

On Monday, the company said ADSB had given notice that it was exercising the put option granted to it and that Oriental was to purchase ADSB's participation in the joint-venture project.

The put option price of RM110.8mil shall be paid within a period of 60 days from March 26, the company told Bursa Malaysia.

It added that it was now at liberty and sole discretion to negotiate with other new strategic partner(s) of its choice.

No details were given as to why ADSB wanted to end the relationship.

StarBiz queries to ADSB were not answered by press time.

In explaining the termination of the relationship, Ch'ng said: “We understand Amanah Raya Bhd, of which ADSB is a subsidiary, is presently being transformed into holding the exclusive role of a trustee' company and shall no longer be involved in property development projects.”

The exercise of its option was both mutually satisfactory and friendly, he added.

LakeHill Resort Development, according to reports, is currently developing Aptec City on a 638-acre piece of land in Iskandar Malaysia under its wholly-owned unit, Asia Pacific Trade & Expo City Sdn Bhd.

Upon its completion in eight years' time, Aptec City will reportedly be MPCorp's jewel in the crown.

As at Dec 31, loss-making MP Corp had cash and cash equivalents of RM1.6mil. Notably, its total assets stood at RM511.1mil while liabilities totalled RM125.3mil.

By The Star

Crescendo posts higher profit of RM88m

Crescendo Corp Bhd registered a pre-tax profit of RM88.062 million for its financial year ended Jan 31, 2012, up from RM50.766 million in the previous year.

Revenue for the year rose to RM290.424 million from RM215.225 million a year ago.

In a filing to Bursa Malaysia today, the company said the significant increase in revenue was mainly attributed to higher sales in industrial properties.

"The substantial increase in pre-tax profit was mainly contributed by higher sales as well as improved margins from industrial properties," it added.

For the fiscal fourth quarter, Crescendo posted a pre-tax profit of RM23.18 million, up from RM16.122 million in the corresponding quarter previously.

Revenue for the three-months period rose to RM70.610 million from RM56.706 million.

Moving forward, the construction and property firm said it had total unbilled sales brought forward and new locked-in sales of RM124 million but it expected market condition to be challenging in the near to medium term.

"Nevertheless, demand for property in Johor is expected to be least affected in view of the enhanced bilateral collaborations between Iskandar Malaysia and Singapore recently.

"The group expects industrial property sales to be the main profit contributor but it will also start to launch residential houses in Bandar Cemerlang in the 2013 financial year," the company said.

By Bernama

Selangor Properties unit gets notices of land acquisition

KUALA LUMPUR: Selangor Properties Bhd subsidiary Bungsar Hill Holdings Sdn Bhd (BHH) has received notices of acquisition from Mass Rapid Transit Corp Sdn Bhd (MRT Corp).

In a filing with Bursa Malaysia, Selangor Properties said that BHH received the notices of acquisition in the form of Form E and Form F under the Land Acquisition Act 1960 from the Government. The proposed acquisition was intended for the Mass Rapid Transit project's Sungai Buloh-Kajang line.

“BHH objected to the proposed acquisition and has filed an application for leave for judicial review for an order of certiorari to quash the notices of acquisition. The said application for leave for judicial review is now fixed for mention by the court on June 21,” it said.

It added that BHH had in the meantime been negotiating with MRT Corp to seek a solution to either reduce and/or avoid the proposed acquisition of the said land.

On Feb 28, BHH and MRT Corp had agreed in principle, via an undertaking letter and points of agreement, that the area for the proposed land acquisition for title no. Geran 58376, Lot 54305 will be reduced; the area for the proposed land acquisition for title no. H.S.(D) 100364, PT 5785 will be reduced; the proposed land acquisition for title no. Geran 70133, Lot 56495 will be withdrawn subject to BHH undertaking to provide the facilities and railway reserve required for the MRT station at Pusat Bandar Damansara to the specifications provided by MRT Corp.

This arrangement provided under the points of agreement is not binding on the parties until a definitive agreement is signed by both the parties.

Following the above arrangements, the land acquisition hearing for the said land has been postponed with no hearing date being fixed yet.

By The Star

Mid Valley Johor in the making

IGB Corp Bhd is replicating Mid Valley City here in Johor with the project's gross development value exceeding RM6 billion, its chief said.

The megamall project in Johor Baru is the second such development for IGB and is also the first project for the developer in Johor.

Group managing director Robert CM Tan said IGB is bullish on the Johor market, especially with continuous growth in Iskandar Malaysia and more Singaporeans going there for properties.

Tan said "Mid Valley Johor" will take some five years to complete and construction is expected to begin by the end of this year or early 2013.

There are many issues to be addressed such as land matters and finalising the project's development plan for approval.

"We have not finalised the planning of the project. We will undertake a study to identify the best components. Right now, we plan to build a 1.5 million square feet mall, either one or two hotels, high-end residences and commercial towers.

"We hope to resolve the land issues and other matters soon," he said yesterday after inking a memorandum of understanding with Selia Pantai Sdn Bhd to set up a 70:30 joint venture company named Southkey Megamall Sdn Bhd.

Johor Mentri Besar Datuk Abdul Ghani Othman was present at the signing ceremony.

Tan said IGB will maximise the value of the land, estimating the project's gross development cost to be in the region of RM3 billion.

Southkey Megamall will buy 15 hectares for the project. The land is part of Selia Pantai's RM15 billion Southkey development, which started early last year.

Selia Pantai is a public-private partnership between Selia Group founded by Datuk Mohamed Zaini Amran, and Johor state investment company, Kumpulan Prasarana Rakyat Johor.

Tan said IGB is also mulling over developing a megamall project in the north, most likely Penang.

"We are always looking for opportunities to expand. We are also looking for real estate developments overseas," he said.

IGB shares closed at RM2.85 yesterday, seven sen lower than Tuesday.

By Business Times

Johor’s own Mid Valley City

From left: Tan, IGB Corp chairman Tan Sri Abu Talib Othman, Selia Pantai MD Datuk Mohamed Zaini Amran, Ghani and Kumpulan Prasarana Rakyat Johor Sdn Bhd chief Executive officer Johar Salim Yahaya looking at a model of the proposed Southkey Megamall in Johor Baru.

KUALA LUMPUR: The proposed Mid Valley City-type mixed development in Johor Baru, via a joint venture between IGB Corp Bhd and Selia Pantai Sdn Bhd, is expected to take four to five years, and has a tentative gross development value of RM6bil.

“Tentatively, the project will have a gross development cost of RM2bil to RM3bil. It took us 15 years to get Mid Valley City to what it is today. Hopefully, it will take us only half that time with the Johor project,” said IGB Corp group managing director Robert Tan.

IGB Corp, the developer of Mid Valley City in Kuala Lumpur, has entered into a conditional memorandum of understanding (MoU) with Selia Pantai for the joint venture.

Johor Menteri Besar Datuk Abdul Ghani Othman, who witnessed the MoU signing, said the project would complement other developemnts in the Iskandar Malaysia economic growth corridor.

A joint-venture company called Southkey Megamall Sdn Bhd will be set up to acquire three parcels of leasehold land measuring 36 acres for the project within the 300-acre Southkey development in Johor Baru.

Selia Pantai is the Southkey developer and is a public-private partnership between the Selia Group and the Johor government via Kumpulan Prasarana Rakyat Johor Sdn Bhd (KPRJ).

IGB Corp will have a 70% stake in Southkey Megamall, with the balance owned by Selia Pantai.

Southkey is located within the Johor Baru city flagship zone A of Iskandar Malaysia and is accessible via five-minute drive from the Sultan Iskandar Customs, Immigration and Quarantine (CIQ) complex as well as via Jalan Tebrau, Jalan Bakar Batu and the Eastern Dispersal Link.

Tan said it was a great location for the proposed Southkey Megamall.

“It is not easy to find a location like this. We are bullish on the Johor market. There are many things happening in Iskandar Malaysia,” he said.

He said Selia Pantai had approached IGB Corp about six months ago with the proposal for the project, which is planned to have a retail mall as well as hotels, serviced apartments and offices.

The proposed Southkey Megamall will have six million sq ft of space, and will include a net lettable area of 1.5 million sq ft, with about 7,000 carparks and can accomodate two major anchor tenants as well as 400 to 500 retail outlets.

IGB Corp will fund its portion of the project via internal funds and bank borrowings.

According to Tan, another six to nine months will be needed to do studies as well as resolve planning approvals and other issues pertaining to the project.

“We hope to start construction in 2013. This is our first project in Johor. we are always on the lookout for opportunities. We want to look in the north also. Ideally, we want to have Mid Valley City-type developments in the south, central and north (Penang),” he said.

By The Star

Sime on track to hit RM2.4b property sales

Sime Darby Property Bhd is on track to achieve a gross sales value (GSV) of RM2.4 billion in the current financial year ending June 30, 2012, said managing director Datuk Wahab Maskan.

He said the value would be mainly contributed by some 23 property projects under its Lifestyle Collection umbrella. Of the 23 projects, 10 were launched today as the first phase of the Lifestyle Collection series.

"The ten projects have a GSV of RM1.2 billion and the others, RM1.3 billion.

"The promise that we gave to our parent company, Sime Darby Bhd, was to register a GSV of more than RM2 billion. We are sure of reaching RM2.4 billion," he told reporters after the launch.

Wahab, who is also the Chief Operating Officer of Sime Darby said the property arm of the conglomerate, expects its profit to be sustained at between RM400-RM500 million for the current financial year.

He added that Sime Darby Property is also looking to maintain the profit contribution at about 10-15 per cent.

"We have seen tremendous growth in demand for high-end and medium range housing and commercial properties. If this continues, then I would not be surprised, if we touch 20 per cent in the coming years," Wahab said.

He also said that the property developer is keen on increasing its landbank, with the focus on countries like England, Singapore and Australia.

"We will still concentrate on Malaysia but the international property market is also very vibrant and attractive. We currently have some projects in the said countries.

"We will thus be looking for new land and projects while restructuring the development projects in hand," he added.

By Bernama

Tradewinds Corp to build resort hotel in Langkawi

LANGKAWI: Tradewinds Corporation Bhd's subsidiary, Benua Mahsuri Sdn Bhd, will build an international-standard resort hotel on this duty-free island.

Langkawi Development Authority (LADA) chief executive officer Tan Sri Khalid Ramli said this would draw more affluent tourists to Langkawi, hence increase the island's tourism receipts per capita in the future.

He was speaking to reporters after signing the land lease agreement with Tradewinds Corporation chief executive officer Shaharul Farez Hassan here today.

The hotel will be built on LADA's 36.7-acre land in Teluk Burau.

Khalid said the project would create over 400 new jobs.

By Bernama

Prasarana in property joint venture

PETALING JAYA: Syarikat Prasarana Negara Bhd will work with a local property developer to build a RM200mil high-rise mixed development project over its underground Dang Wangi light rapid transit (LRT) station.

Managing director Datuk Shahril Mokhtar said they had made the decision last week in selecting the best developer to work with Prasarana and due announcement would be made soon.

“The bidders submit their proposals via an open tender process and presented their creative ways to develop the piece of land there.

“It’s going to be a mixed development of offices and residential units,” he told reporters after the memorandum of understanding signing yesterday between Prasarana and the Malaysian Anti-Corruption Commission yesterday.

This property venture will be the first for Prasarana that is expected to enhance its revenue stream.

It was previously reported that UDA Holdings Bhd was one of the developers that had sent a proposal to Prasarana to jointly develop the 11,008 sq m.

Previous reports also described that the Dang Wangi development might be emulating the Kuala Lumpur City Centre with underground LRT.

Going forward in this new venture, Prasarana would also be looking at other locations with potential to have property developments especially in high traffic areas such as Ara Damansara, Subang Jaya KTM station and Awan Besar along the Kesas Highway.

By The Star

Nakamichi M’sia sells property

KUALA LUMPUR: Nakamichi Malaysia Sdn Bhd has signed a sale and purchase agreement with Century Advance Technology Sdn Bhd for the proposed disposal of a piece of industrial land and building for RM19mil.

Nakamichi Malaysia is a wholly-owned unit of Nakamichi Corp Bhd.

Nakamichi Corp, in a filing to Bursa Malaysia yesterday, said the proposed disposal was expected to be completed in the fourth quarter of 2012.

By Bernama

BRDB closer to open tender

PETALING JAYA: Bandar Raya Development Bhd (BRDB) is one step closer to selling off its four prime assets via an open tender, after the company announced the appointment of its legal and financial advisers to assist in the deal.

In a filing with Bursa Malaysia, the company said it was working with Lee Hishammuddin Allen & Gledhill and CIMB Investment Bank Bhd to assist in the proposed disposal.

It said the board had decided to proceed with the proposed disposal, while noting that Ambang Sehati Sdn Bhd had to-date been unable to confirm its plans to increase its stake in BRDB.

In September 2011, Ambang Sehati proposed to buy BRDB's properties, namely Bangsar Shopping Centre, Menara BRDB, CapSquare Retail Centre and Permas Jusco Mall for RM914mil.

The proposal drew criticism from various parties, who expressed concern over the lack of transparency in the deal and the fairness of the offer price, coupled with the fact that it was a related-party transaction.

Subsequently, the company called off the sale and decided to call for an open tender to take into consideration the interest from credible parties to acquire its assets, and also Ambang Sehati's intention to increase its stake in the company.

Ambang Sehati is the private investment vehicle of Datuk Mohamed Moiz Jabir Mohamed Ali Moiz, BRDB's chairman, who owns 18.88% of BRDB.

“The company had decided to proceed with the disposal exercise. Last year, when the news broke (about the four properties), Ambang Sejati wanted to buy (them). At that point in time, Ambang Sejati was thinking of increasing its stake in the company, that is why the board decided to defer the exercise.

“That was 2011, and now Ambang Sejati is still evaluating its options, but the board can no longer wait for them and this (announcement) is a go-ahead with the tender,” said a source familiar to the matter.

He said the company had not appointed a property consultant yet but the legal adviser appointed was in the midst of finalising the proposal on how to go ahead with the tender.

OSK Research said it was acceptable for BRDB to monetise its assets as long as the company disposed of them at a fair and attractive pricing.

“As we think Ambang Sehati's offer price is unattractive, we see the open tender route as positive as this would enable the group to garner better pricing for its assets via competitive bids from other interested parties,” it said.

It said it was very likely that the company would distribute some of the disposal proceeds as special dividend to its shareholders.

By The Star

Bolton in its first build-then-sell development

KUALA LUMPUR: Bolton Bhd is embarking on its first build-then-sell residential development with a gross development value of RM80mil on a 2.34ha site in Setapak.

The company has entered into an agreement with CRSC Property Sdn Bhd to develop 70 three-storey superlink terraced houses on the leasehold site, which is part of an ongoing 26.97ha residential and commercial development in Taman Sri Rampai.

Under the agreement with CRSC Property, Bolton will construct and complete the development by February 2015.

“We expect this project to be a quick turnaround for Bolton as the land is currently vacant and ready for development,” said executive chairman Datuk Mohamed Azman Yahya in a statement yesterday.

“Although this is our first build-then-sell concept development, we are confident that Bolton's good and solid reputation has garnered us a strong following in the Klang Valley to ensure the saleability of the superlink terraced houses.”

He said Taman Sri Rampai was a sought-after mature township, which enjoys good accessibility to the city centre via several major highways.

“As this project is a landed development, this would ensure that the property would enjoy healthy capital appreciation upon its completion,” he added.

By Bernama

BRDB to proceed with disposal of properties

PETALING JAYA: Bandar Raya Development Bhd (BRDB) will proceed with the proposed disposal of BR Property Holdings Sdn Bhd, CapSquare Retail Centre and Permas Jusco Mall via a tender exercise.

In a note to Bursa Malaysia yesterday, BRDB said its board noted that while Ambang Sehati Sdn Bhd, its second largest shareholder, is still evaluating its plan to increase its stake in the company (which may or may not result in a general offer), the latter has yet to confirm its decision to proceed with the exercise.

BRDB said it was working with its legal and financial advisers to implement the proposed disposal in an efficient manner.

By The Star

IGB to ink deal to co-develop Johor project

PETALING JAYA: IGB Corporation Bhd will be signing a non-binding Memorandum of Understanding (MoU) with Selia Pantai Sdn Bhd for the proposed establishment of a 70:30 joint venture (JV) to acquire and develop three vacant parcels of leasehold land situated in Johor into a retail mall and / or mixed development.

IGB told Bursa Malaysia today that the MoU shall remain valid for 30 days except as otherwise mutually agreed in writing by the parties.

“Full announcement of the proposed JV will be made in the event the parties have executed a joint venture agreement which shall constitute the definitive documentation providing the details in respect of the matters broadly set out in the MoU,” the company said.

By The Star

Singapore's HDB to launch 8,000 flats today

SINGAPORE: The Housing Board (HDB) will launch a bumper crop of 8,000 flats today through a joint build-to-order (BTO) and sale of balance flats exercise. The flats are located in mature and non-mature estates, such as in Bukit Timah, Bedok and Clementi, and cover the full range of flat types.

“With the wide range of flats offered, flat buyers will be able to apply for one that best meets their needs, and in an estate of their choice,” said National Development Minister Khaw Boon Wan in his latest blog posting.

He expects strong demand for the completed/near completed flats and flats in mature estates. Those who wanted to have a better chance of success should widen their choice and consider applying for a BTO flat in the non-mature estates, he said.

The results of the launch will help HDB calibrate the BTO rules for future launches, to ensure that the policy objectives are met. “Our priority remains to help first-timers get their first HDB flat as quickly as possible, so that they can proceed to start their family,” he said.

Earlier this month, Khaw announced in parliament new measures to help various groups of home buyers.

They include tripling the BTO chance for second-timers in non-mature estates, enhancing the married child priority scheme and introducing a new multi-generation priority scheme to help married children live with or near their parents, as well as introducing an ageing-in-place priority scheme and a silver housing bonus scheme to help the elderly right-size and age in a familiar environment.

By ANN/ST

The Arabs are out others in, in Medini land

Syed Mohamed(left in pic):‘The Arabs will no longer be involved, but it was good that they came initially.’ File picture shows Iskandar Investment Bhd president/CEO Datuk Syed Mohamed Syed Ibrahim (left) and UEM Land Holdings Bhd managing director/CEO Datuk Wan Abdullah Wan Ibrahim exchanging documents on Jan 10, 2011, after a signing ceremony to mark their collaboration to form a joint venture company offering security services in Nusajaya at Iskandar Malaysia, Johor. UEM an early investor is also involved in other developments in the Iskandar area.

KUALA LUMPUR: Arab investors who were originally the master developers of 2,230 acres at Iskandar Malaysia known as the Medini development will no longer be involved and about 80% of that land has since been sold to other foreign investors, including those from East Asia.

“If the Arabs are not willing to develop the land, we cannot let the project be left idle, there must be activity on the land. In fact, we had initiated this (to get other investors) who are from China, South Korea and also Japan to invest in the land,” Iskandar Investment Bhd (IIB) president/chief executive officer Datuk Syed Mohamed Ibrahim said in an interview.

He added that the Arabs “will no longer be involved in Medini, but it was good that they came (initially).”

Five years ago, Abu Dhabi's Mubadala Development Co was the leading consortium investing US$720mil (RM2.1bil) in Medini Iskandar Malaysia to jointly develop 2,230 acres. But the global crisis had thrown the Arab property world into disarray and that had somewhat slowed the development of the Medini parcel.

Hence, IIB had to get other investors, including those from Singapore, North Asia and domestic players.

“The interest (from the foreign investors) came to our office and we facilitated the deals with the foreign investors,” he added.

But it cannot be denied that the Arabs did put in the money when Malaysia wanted foreign investors to invest in Iskandar Malaysia, which is the country's first economic corridor.

Since then, Malaysia has had investors from other parts of the world including domestic investors who had bought plots of land to develop. One of the bigger foreign investors thus far that has invested RM2bil in Medini's development is Beijing-based real estate developer, Zhuoda Real Estate Group. The Sunway Group has bought 691 acres to undertake a mixed development.

The 2,230-acre Medini development would house lifestyle and leisure development. IIB's overall land bank in Johor is 8,889 acres, of which 2,230 acres are for Medini and Legoland theme park and hotel. Nearby, there is also a educity, a wellness centre and a creative studio, UK-based Pinewood, that will be housed.

For the educity, nine universities and campuses will be sited and they include Singapore's Raffles University, University of Southampton Malaysia campus, Malborough College Iskandar Malaysia, Newcastle University Medicine Malaysia, University of Reading Malaysia and the Netherlands Maritime Institute.

IIB is 60%-owned by Khazanah Nasional Bhd, 20% each by Employees Provident Fund and Kumpulan Prasarana Rakyat Johor.

Syed Mohamed said parties from China had wanted to buy the entire Medini area, but because it would be developed into a cosmopolitan area, they had to ensure there was a mix of investors from different parts of the world.

“We have got a nice problem as far as genuine interest from potential local and foreign parties for the land is concerned. We have a suite of investors and we have no restrictions to sell the plots of land to foreigners. There is a lot of interest for land and while there is limited land out there, we are not ready to open the over 6,000 acres for sale presently,” he said.

He would rather wait for land prices to appreciate before opening the over 6,000 acres for development.

Turning to Legoland, Syed Mohamed said the theme park, sited on 76 acres, will open its doors in the fourth quarter of this year. At a cost of US$700mil, the company is also getting a water theme park because of its strict procurement process.

“For the price of one we are getting two theme parks. The water theme park will open in 2013 together with the Legoland theme park hotel,” he said.

Thus far, IIB has managed to sell 10,000 of the unlimited one-year theme park entry passes which are being offered at a special price of RM195. He is targeting one million visitors per year but has yet to promote the theme park in Indonesia, which he believes has a huge potential market.

By The Star

Mah Sing enters Sabah with Sutera Avenue

KUALA LUMPUR: Mah Sing Group Bhd will enter Sabah property market with a mixed development, called Sutera Avenue with an estimated gross development value (GDV) of RM830million.

With this project, the group's landbank now stands at 490.4ha with remaining GDV and unbilled sales worth an estimated RM16.27 billion.

This provides the group with strong earnings stream for the next five to seven years, group managing director Tan Sri Leong Hoy Kum said.

Sutera Avenue will be developed on about 3.5ha of prime commercial land along the coastal highway in Kota Kinabalu's central business district.

Leong said the group is keen on Sabah market due to its vibrant economy, strong tourist trade and its population base provides a large market segment.

"Sutera Avenue is a perfect fit with our business strategy; the location is second to none, facilities and amenities abound, and we can launch the project quickly in line with our fast turnaround business strategy.

"We shall develop the project over five years, and intend to commence registration of interest by the second half of this year, as early as the third quarter," he said in a statement released yesterday.

The project is Mah Sing's second land deal in many months, as the developer has a landbanking target of acquiring new projects with potential GDV of RM5 billion in 2012.

Mah Sing's wholly owned subsidiary, Capitol Avenue Development Sdn Bhd had signed a joint development agreement with Paduan Hebat Sdn Bhd for the proposed joint development of 1.7ha for an entitlement of RM39 million or about RM210 per square foot (psf).

Capitol Avenue is also granted an option to jointly develop with Paduan Hebat another 1.76ha of adjacent site at an entitlement price of RM216 psf or abour RM41.5 million, within six months of the agreement.

In the first phase of the development, covering 1.7ha, the group plans to develop multi-storey shop offices fronting the coastal highway. This will be complemented by street mall retail lots and serviced apartments.

"These shop offices with generous lot sizes will incorporate a new and unique concept - inspired by Mah Sing's 30 Jewels and Gourmet Street shops in its flagship Icon City Petaling Jaya - appealing to both business owners, investors and future tenants.

By Business Times

UEM Land targets more foreign joint venture deals

The merger of UEM Land and Sunrise Bhd in early 2011 had provided a much-needed boost to the company, which now has property developments in Canada and management projects in Singapore.

UEM Land Holdings Bhd hopes to seal joint venture (JV) deals with major property developers in India, Vietnam and Myanmar by year-end, as part of its aspiration to become a global property player by 2015.

Managing director (MD) and chief executive officer (CEO) Datuk Wan Abdullah Wan Ibrahim said the company is now in discussions with the developers.

"It will be good if we can ink a deal with each party by year-end. Our aim is to have a strong regional presence," he said yesterday.

Wan Abdullah said UEM Land, which is the property development arm of state-owned Khazanah Nasional Bhd, has big targets as it approaches 2015 and 2016.

By then, it hopes to achieve a much higher revenue and net profit, with more land in its pocket, he said at the MIDF Investment luncheon talk. Also present were UEM Group Bhd MD and CEO Datuk Izzaddin Idris and MIDF group MD Datuk Mohd Najib Abdullah.

The acquisition of Sunrise had increased UEM Land's landbank in prime areas of central Kuala Lumpur, Mont Kiara and Seri Kembangan.

For the financial year ended December 31 2011, UEM Land posted a net profit of RM301.7 million on revenue of RM1.7 billion, up 55.1 per cent and 261.5 per cent, respectively, from 2010 financial year.

UEM Land's headline KPIs (key performance indicator) for 2012 is to launch RM4.5 billion worth of projects and achieve property sales of RM3 billion.

"We are looking at net profit growth of 40 per cent, and return of equity of 10 per cent. By 2015, you can imagine the numbers we are targeting," Wan Abdullah said.

UEM Land's current projects include East Ledang and Puteri Harbour in Nusajaya, Johor; Symphony Hills in Cyberjaya; 28 Mont Kiara, Arcoris Mont Kiara, Angkasa Raya and Summer Suites in Kuala Lumpur; and Quintet in Richmond, Canada.

Its partners for some of the developments are Bandar Raya Development Bhd, Sime Darby Bhd, UM Land Bhd, Gamuda Bhd, MCL Land and Emkay Group.

Wan Abdullah also said that UEM Land is looking for more strategic partners to undertake land development in Nusajaya, especially at the Southern Industrial & Logistics cluster to up the ante.

By Business Times