Sime Darby targets RM1b GDV worth of projects annually

SUBANG JAYA: Sime Darby Property, the property unit of re-listed Sime Darby Bhd, targets RM1 billion in gross development value annually and plans to develop 3,642 hectares or some 25% of its 14,973ha landbank over the immediate to medium-term, a senior executive said.

The division’s executive vice president of property development and strategic investments Datuk Tunku Putra Badlishah said yesterday that the unit aimed to be the country’s largest property company and hoped to make a larger contribution to the group’s total earnings from the 5.9% in its financial year ended June 30, 2007.

In terms of landbank, he said the company, being the largest property company, would optimise the land with plans to use 3,642ha over the next five years.

Speaking to reporters after the launch of its Royale Palms Villas high-end residential development project here, Tunku Badlishah said the total GDV for all its projects currently under planning was RM18 billion.

The Royale Palms Villas, located on the 727ha Putra Heights mixed development site, comprised 36 units of premium and guarded community villas with a built-up area of between 4,170 sq ft and 4,900 sq ft, and a GDV of RM55 million, he said.

The residential project is the first to be launched since the re-listing of Sime Darby Bhd.

He said the company targeted a 50% take-up rate of the properties within six months, with most purchasers expected to be customers of its previous projects.

“The collection of Royale Palms villas is our first roll-out of luxury homes as part of our new focus on the higher-end segment of the property market to meet the demands of the increasingly affluent and lifestyle seeking homebuyers,” he said.

Tunku Badlishah said the focus on the development of high-end properties was also part of Sime Darby Property’s strategy going forward following the consolidation of Sime UEP Properties Bhd, Sime Darby Property, Guthrie Properties Development Holdings Bhd and Negara Properties (Malaysia) Bhd.

By The EDGE MALAYSIA (by Ellina Badri)

Sandakan’s RM40m boutique hotel to open on Dec 23

KUALA LUMPUR: Sandakan’s first boutique hotel, the RM40-million @ease waterfront hotel — located within the RM450 million Sandakan Harbour Square — will be opened on Dec 23.

The hotel, which overlooks the Sandakan Harbour, has 138 deluxe rooms and suites, business centre and banquet facilities and it is targeting corporate clients, businessmen and tourists.

It would be the first hotel within the Sandakan Harbour Square and fourth hotel under the three-star category in Sandakan. The project was undertaken by Sara Timur Sdn Bhd’s subsidiary Sara Timur Properties Sdn Bhd.

Sara Timur — a Sarawak-based engineering and construction company — was the main contractor for the first two of four phases of the 12-acre Sandakan Harbour Square. The hotel will be managed by the Value Hospitality group.

Sara-Timur Properties joint managing director Rosita Hamden said yesterday there was good potential for tourism in Sabah.

“Sandakan has many attractions to offer including the Sepilok Orang Utan Rehabilitation Centre, the Kinabatangan river and eco-tourism,” she said at a press briefing here yesterday.

She said first daily flights from Kota Kinabalu to Sandakan are usually packed with tourists and businessmen, adding there was a shortage of 6,000 hotel rooms in Kota Kinabalu.

“We are expecting 60% occupancy for the first year which is according to the standard average industry occupancy,” said Value Hospitality’s area general manager John Augustin.

Sara-Timur Sdn Bhd’s regional director (Sabah region) Anthony Tiong said the company was looking for more opportunities and would first focus within Malaysia. Sandakan Harbour Square is Sabah’s first integrated urban renewal development project that was launched in January 2003 and targeted to complete in 2010.

By The EDGE MALAYSIA (by Rosalynn Poh)

The Store buys Alor Star Mall for RM130m

KUALA LUMPUR: The Store Corporation Bhd is proposing to acquire Jurus Kota Sdn Bhd, which owns the Alor Star Mall in Kedah, from YS Tang Holdings Sdn Bhd for RM130 million in cash.

Under the agreement announced yesterday, The Store would also assume the liabilities of RM43.91 million which Jurus Kota owed to YS Tang as at Dec 31, 2006.

The Alor Star Mall is a two-storey commercial complex with mezzanine floor and basement car park.

The mall has a net lettable area of about 296,532sq ft with 386 car park bays. The mall started operations in 2004 with the major tenant being Pacific Hypermarket and Departmental Store Sdn Bhd, a subsidiary of The Store.

The Store said the acquisition would be financed from its own funds and/or bank borrowings.

“The Store Group will be able to increase its revenue base through recurring rental income from the Alor Star Mall, which will complement The Store Group’s existing retailing income,” the company said.

It would also be able to enjoy rental savings, which would otherwise be incurred by the Pacific outlet, which occupied 72% of the total lettable area of the Alor Star Mall. It expected the acquisition to be completed by the end of first quarter of 2008.

YS Tang had also provided a warranty that the net tangible assets (NTA) of Jurus Kota as at Dec 31, 2007 would be at least RM133.28 million as in the audited NTA as at Dec 31, 2006.

Jurus Kota posted RM1.79 million in net profit on the back of RM8.54 million in revenue for the audited financial year ended Dec 31, 2006. In FY05, net profit was RM2.85 million and revenue at RM6.62 million.

According to The Store, the rental revenue per annum from the mall was about RM10.5 million per annum, based on existing rental rates. About 86.9% of the building was occupied.

The Store’s bank borrowings are expected to increase from RM199.36 million to RM329.36 million after the proposed acquisition, which would see its gearing ratio increase from 0.76 times to 1.25 times.

By The EDGE MALAYSIA (By Kevin Tan)

Dubai Ventures buys into Guocoland

KUALA LUMPUR: Dubai Ventures Ltd bought into Guocoland (Malaysia) Bhd, acquiring 74 million shares in the property-based company on Wednesday.

A filing to Bursa Malaysia showed the acquisition of the shares by the Dubai investment group represented a 10.56% stake.

Guocoland, which is controlled by Tan Sri Quek Leng Chan, saw its share price closing at RM3.14 on Wednesday.

The company posted net profit of RM3.36 million on the back of RM36.35 million in revenue for the quarter ended Sept 30, 2007.

By The EDGE MALAYSIA

E&O JV in Penang luxury seafront villas project

PENANG: E&O Property Development Bhd’s joint-venture luxury bungalows project on Penang island, where the units are priced between RM2.75 million and RM7.5 million, will be launched on Saturday.

The Villas By-The-Sea project villas would be built on 15 acres of freehold land in Seri Tanjung Pinang, with total of 750 metres of frontage facing the Straits of Malacca. They are scheduled to be completed by mid-2009.

The JV partners include Bahrain’s Al Salam Bank and CIMB-Mapletree Real Estate Fund 1 Sdn Bhd.

E&O Property director of marketing and sales KC Chong said with the rising affluence in Asia, the concept of luxury had evolved significantly and shifted from tangibles like ownership of properties, to intangibles like time, personal space and relaxation.

“These have become very valuable to many, thus resort-styled homes and developments that are set in lush natural surroundings and blessed with the sun, sand and sea are becoming highly sought after. But what makes our Villa By-The-Sea truly unique is their prime location just minutes away from Gurney Drive,” he said.

CIMB-Mapletree chief executive officer Raja Noorma Othman said the project represented the real estate fund’s maiden foray into the upscale residential market in Penang.

“We are confident that this joint venture will strengthen our position in the international luxury property market and pave the way for further developments in the high-growth market,” she said.

CIMB-Mapletree is a private real estate fund managed by CIMB-Mapletree Management Sdn Bhd, a joint venture between CIMB Real Estate Sdn Bhd and Mapletree Capital Management Ltd.

The villas come in three designs, namely Martinique which is located by the sea, Abrezz and Skye with land area ranging from 4,999 sq ft to 12,860 sq ft each.

By The EDGE MALAYSIA (By Sharon Tan)

SP Setia net profit up 9.2% to RM260m

KUALA LUMPUR: SP Setia, which posted a net profit of RM260 million for the financial year ended Oct 31, 2007, on the back of RM1.15 billion in revenue, targets group sales to hit RM1.8 billion in FY08.

Net profit rose 9.16% from RM238.2 million a year ago. Earnings per share was 38.72 sen. It also proposed a final dividend of 15 sen per share less tax, which brings the total dividend for the year to 25 sen per share.

In the fourth quarter, revenue rose 14.4% on-year to RM317.16 million, while net profit increased 41.7% on-year to RM99.79 million.

Group managing director and chief executive officer Tan Sri Liew Kee Sin said yesterday its profits and revenue were primarily driven by established projects. They were Setia Alam and Setia Eco Park in Shah Alam, Duta Tropika in Sri Hartamas, Setiahills in Ampang, Bukit Indah, Setia Indah and Setia Tropika in Johor Bahru and Setia Pearl in Penang.

“The group targets RM1.8 billion in sales for FY08. That will be a 50% jump in sales, and we are very confident we can do it. We feel the economy is right (for the growth).

“We are evolving from a landed property developer to a fully integrated international developer,” said Liew, adding that the integrated projects would give it better value, income and margins.

Liew said the group’s total sales totalled RM1.2 billion, up 33.3% from RM900 million in FY06. On the RM1.8 billion sales target, he said it would come from 20 active projects next year including four new ones, among which is the Duta Enclaves bungalow project in Kenny Hills and EcoLakes in Vietnam. Its maiden luxury condominium project, Setia Sky Residences in KL, is scheduled for launch next year.

Asked if SP Setia planned to expand to other countries after Vietnam, Liew said SP Setia had received invitations from India and China, but added that it wanted to focus on Vietnam.

“We want to prove to the Vietnamese authorities that we are serious developer,” he said, adding it planned to acquire more landbanks there.

Its 500-acre joint venture with state-owned conglomerate Becamex IDC Corp in Ho Chi Minh City would begin in March 2008.

In Malaysia, SP Setia would team up with Sabah’s state authorities to undertake an integrated project with commercial buildings, hotel and apartments in Kota Kinabalu.

“We think Sabah has a lot of potential,” said Liew. He added SP Setia was negotiating for a high-value piece of land in Kota Kinabalu. Details would be announced soon, he added.

By The EDGE MALAYSIA (by Sharon Tan & Lim Yu Min)

High-end projects to lift SP Setia revenue next year

PETALING JAYA: Analysts expect SP Setia Bhd’s first property launch in Vietnam and a slew of new high-end projects at home to lift the developer’s revenue to a record next year.

In a report yesterday, TA Securities said following management guidance, it had raised SP Setia’s revenue estimates to RM1.77bil from RM1.3bil for the year ending Oct 31, 2008 (FY08).

“Consequently, we have revised upward our net earnings projection by 17% for FY08 and 31% for FY09 to reflect its Vietnam contribution,” the research house said.

The joint venture with Becamex IDC Corp to develop EcoLakes in Vietnam had an estimated GDV of RM2.1bil and was scheduled to be launched in March, it said.

Locally, the company has unbilled sales of RM1.44bil, the highest ever. Its total sales of RM1.153bil for FY07 came within analysts’ expectations.

On Wednesday, group managing director Tan Sri Liew Kin Sin said the company would launch 10 projects next year to bring its total projects to 20, with a total gross development value (GDV) of RM30bil.

SJ Securities concurred that the Vietnam venture was the long-term catalyst for the group’s earnings.

It said SP Setia had unveiled a five-year plan to double its profit by 2012 from next year by focusing on the expansion in its three residential brands: Setia, Eco and Duta. It would also launch its first high-end condominium project in Kuala Lumpur - Setia Sky Residences in Jalan Tun Razak and ultra luxury homes under Duta Grande brand.

The plan also involved undertaking commercial projects with shop offices within townships and integrated commercial development, SJ Securities said.

SJ Securities is maintaining an “overweight” call on the counter.

TA Securities has a “sell” call on the stock with a target price of RM7.70, which would offer a return of 9.1%.

The counter closed at RM7.40 yesterday, down 30 sen, on volume of 8.39 million shares.

By The Star (by Shannen Wong)

Gamuda starts work on Vietnam park project

KUALA LUMPUR: Gamuda Bhd has commenced construction works for the Yen So Park integrated development project, located 6km south of Hanoi.

A ground-breaking ceremony was held on Tuesday at the project site, the company said in a statement yesterday.

Among those who attended the event were Vietnam’s Deputy Minister of Construction Cao Lai Quang, Hanoi People’s Committee vice chairman Nguyen Van Khoi, Malaysian Ambassador to Vietnam Lim Kim Eng and Gamuda group managing director Datuk Lin Yun Ling.

Gamuda will build a world-class public park, a modern sewerage treatment plant, as well as a modern commercial centre comprising office towers, five-star international hotels, a convention centre, shop offices and residential components.

“The Yen So project is not just about the construction of the largest sewerage treatment plant in Vietnam but also includes the construction of an international park with a beautiful waterfront with lakes.

“The lakes and park cover 280ha, making it Asia’s largest urban park facility,” Lin said in the statement.

Lin said Gamuda was transforming south Hanoi into a modern city with a beautiful environment, which would provide much needed recreational space for the city’s inhabitants.

By The Star

Sime Darby offers luxury with Royale Palms Villas

KUALA LUMPUR: Sime Darby Property launched its high-end Royale Palms Villas in Putra Heights yesterday, its first property development project launch since it became a merged entity comprising Sime Darby Bhd, Kumpulan Guthrie and Golden Hope Plantations. Sime Darby Bhd’s new corporate logo was unveiled on Nov 28.

The 2- and 3-storey villas in a guarded development located on 7.5-acre freehold site have a gross development value of RM55 million. Priced from RM1,388,888 onwards, these villas have built-ups of between 4,170 sq ft and 4,900 sq ft. The 3-storey units are offered in two designs.

“The collection of Royale Palms Villas is our first roll-out of luxury homes as part of our new focus on the higher-end segment of the property market to meet the demands of the affluent, ‘lifestyle-seeking’ homebuyers,” said Datuk Tunku Putra Badlishah Tunku Annuar (pix), Sime Darby Property's executive vice-president of property development and strategic investments,
during the launch.



Standard features for the villas include a minimum of five ensuite bathrooms, solar hot water systems, air-conditioning units in all bedrooms, home alarm systems, automatic gates as well as lighting arrestors and surge protection systems.

According to Tunku Badlishah, the villas are spacious, have generous garden space, and feature large windows and doors to enhance natural light and ensure better ventilation. “The exclusivity of Royale Palms, with its many exceptional features, will appeal to buyers and investors who are seeking a better quality of life,” he said, adding that the project should be completed by end-2009.

Putra Heights is an integrated township development comprising residential and commercial properties, including the newly completed Putra Point town centre offering 324 units of 2- and 3-storey shop offices. The township sits on some 1,796 acres and is accessible via the Damansara Puchong (LDP) and the Elite highways.

For a limited time, Sime Darby is offering buyers a Bofi kitchen system worth up to RM80,000, which includes a fridge, microwave, oven, oven hood, hob and food waste disposer. It is also offering HSBC Home Smart, a home financing package with endfinancing of up to 80% of the property’s value at a base lending rate of 1.85% throughout the loan's tenure.

By theSun (by Yeong Ee-Wah)

Royale Palms Villas Launched

Sime Darby aims to sell half of the 36 luxury homes within six months

SUBANG JAYA: Sime Darby Property Bhd is targeting to sell half the 36 luxury Royale Palms Villas within six months of the project launch, executive vice-president Datuk Tunku Putra Badlishah said.

“We have done extensive research and development (R&D) and are confident of achieving that target,” he said after the launch of the company’s high-end residential offering, Royale Palms Villas.

The new project, which would be located at the 727ha Putra Heights township, will comprise eight two-storey and 28 three-storey detached homes with a gross development value of RM55mil.

Putra Heights is an integrated township of mixed development units, including the newly completed Putra Point town centre of 324 units of two and three-storey shop offices.

Badlishah said Royale Palms Villas, to be completed in two years, was targeted primarily at high-end income earners, especially existing customers.

“We have been in property development for close to 20 years. A lot of our (existing) customers have complained to us that they did not have a product to which they could upgrade,” he said, adding that he expected many potential purchasers to be existing customers.

“Prior to this project, we (Sime Darby) never had houses in Putra Heights over the RM1mil mark. With our R&D, we will be building houses with bigger built-up areas and better finishes.

“Our customers will appreciate the difference we are making,” Badlishah said.

On why only 36 homes would be built, he said: “This is a high-end township and not everyone would be able to afford the homes,” he said. The prices of the homes start from RM1.3mil but do not exceed RM2mil.

On another note, Badlishah said the (Sime Darby) group intended to develop its property division further.

“We want to position ourselves as the leading developer within a sustainable community,” he said.

By The Star

Sandakan harbour project to have boutique hotel

Integrated: An artist's impression of Sandakan Harbour Square

Sandakan Harbour Square, Sabah's first integrated urban renewal development project, will soon have a RM40 million boutique hotel.

Named the @ease boutique hotel, it will have 138 deluxe rooms and suites, a modern business centre, and state-of-the-art meeting facilities, among others.

Parkcity Everly Hotel general manager John Augustin said @ease will be the first hotel for the project which has a 1.5km esplanade located near the city's central business district.

With strong tourist arrivals in Sabah, the state's capital Kota Kinabalu currently faces a shortage of 6,000 rooms.

The hotel is managed by Value Hospitality Group that also manages the Prescott and Everly hotels.

It will officially be opened on December 23 by Sabah's Tourism Minister.

With timber as its sunset industry, Sandakan, which is also popular destination for ecotourism, is keen to revive its Little Hong Kong of the East label.

The RM450 million project, which is on a 4.8ha site, is undertaken jointly by Sara-Timur Sdn Bhd and ICSD Ventures Sdn Bhd. It is due for completion in 2010.

ICSD is a partnership between Kuala Lumpur-based Ireka Corp Bhd and Sabah-based construction and development company Syarikat Charng Sheng Sdn Bhd.

Sarawak's Sara-Timur, an engineering and construction works services provider, is the main contractor for the first and second phase of Sandakan Harbour Square.

The project comprises a three-storey central market, fish market and jetty, 129 units of three- and four- storey shop-offices, a waterfront esplanade, multi-storey car park facility, shopping complex and an international standard hotel.

By New Straits Times (by Rupa Damodaran)

@ease targets 60% occupancy rate

KUALA LUMPUR: @ease boutique hotel, a hotel in Sandakan, Sabah and owned by Sara-Timur Properties Sdn Bhd, expects to achieve an occupancy rate of up to 60% in line with the industry’s average rate.


From left: Rosita Hamden, John Augustin and ICSD Ventures Sdn Bhd joint managing director Kenneth K.Y.Tiong at the media briefing

The hotel, built at a cost of over RM40mil, is part of the Sandakan Harbour Square, a RM450mil integrated, commercial, retail, and recreational development project.

At a media briefing on @ease, the operator of the hotel, Value Hospitality Group, said the peak tourist season in Sandakan would be from April to December.

“Sandakan itself has been earmarked as a new growth hub for Sabah, whereby commercial and tourism activities are increasing,” said Value Hospitality area general manager, east Malaysia, John Augustin.

Value Hospitality also manages the Prescott and Everly hotels.

@ease, which was soft launched on Nov 26, is scheduled for official launch on Dec 23.

“We are looking at opening eight more hotels in the peninsula as well as East Malaysia in the future,” said Sara-Timur joint managing director Rosita Hamden.

A property developer with various projects in the country, the company is also the main contractor for Phase I and Phase II of the Sandakan Harbour Square.

Rosita said the company was looking at having the same boutique hotel concept for the eight hotels it planned to build but had yet to decide on the cost of investment.

@ease will feature 138 deluxe rooms and suites, a business centre, and banquet and state-of-the-art meeting facilities.

By The Bernama

Hunza Properties records 40pc bookings

Hunza Properties Bhd had recorded over 40 per cent bookings for its high-end condominiums at the "Gurney Paragon" project on Penang island.

The company's executive chairman, Datuk Khor Teng Tong, yesterday said the buyers for the units which are priced from RM1.6 million to RM2.9 million are made up of both locals and foreigners.

KHOR: The company is investing RM10 million to refurbish a heritage building at the project site

"Piling works have just been completed for the 220 condominium units which carry a gross development value of RM380 million," he told reporters after the company's annual shareholders meeting in Penang.

Khor also said the company is investing RM10 million to refurbish a heritage building at the project site.

The historical St Joseph's Novitiate building which fronts the famed Gurney Drive waterfront will see its stained glass windows, doorknobs and other old fixtures restored, he added.

"We are also taking preventive measures to ensure the safety of the 82-year-old building during the construction of the two condominium towers which will frame the building," he added.

The 82-year-old French style building which served as a novitiate for the Christian brothers sits on a 4.08ha freehold site. It was purchased by Hunza Properties from the Federation of Malaya of the Christian Brothers' Schools for RM97 million.

The "Gurney Paragon" project which will comprise a shopping mall, retail lots, 220 high-end condominiums and an office block is due for completion by the first quarter of 2010.

On the company's RM240 million "Infinity" beachfront project in Tanjung Bungah, Khor said foundation works have been completed.

"The current take-up rate for the project is 37 per cent," he noted, "and close to half of the buyers are from countries like the UK, Singapore, Hong Kong and the Middle East."

The 119 units are priced between RM1.6 million and RM3.2 million and Hunza Properties has begun rehabilitating the nearby Sungai Kelian and carrying out landscape works for RM600,000.

"We are adopting the stretch of beach fronting the project which we will maintain but will remain accessible to the public," Khor added.

For its 2007 financial year ending June 30, Hunza Properties recorded RM57.5 million in profit before tax. This reflects a 65.2 per cent increase from the RM34.81 million recorded in 2006.

Profit after tax for 2007 was RM39.24 million, a 98 per cent increase from the RM19.8 million recorded during the 2006 fiscal year.

By New Straits Times (by Marina Emmanuel)

Sunway close to signing deals

PETALING JAYA: Sunway International Hotel & Resort is close to signing hotel management agreements with four to six parties in Malaysia, Vietnam and China, chief executive officer Hanley Chew said.

“We are already in negotiations with four to six parties in the region. We are close to signing the agreements,” he said yesterday after a signing ceremony with Angkor Tourism Co Ltd to manage two hotels in Cambodia.

The hotels are Allson Angkor Hotel and Allson Angkor Paradise Hotel, located in Siem Reap.

The agreement would enable the hospitality and management arm of Sunway City Bhd to expand its presence in Cambodia, Chew said.

Chew said the company would start managing the hotels next month for an initial period of 10 years.

“We aim to achieve 60% occupancy rate for both hotels in the coming years,” he said.

Angkor Tourism managing director Kousoum Saroeuth said the company believed Sunway International was capable of managing the two hotels in Siem Reap well.

“Sunway has a good reputation and is performing well not only in Cambodia but also in Malaysia and Vietnam. So it is definitely an opportunity for us to take advantage of Sunway’s expertise and marketing network to develop better our hotels around the world,” he said.

The Malaysian hospitality group now operates and manages 13 hotels and resorts under two hotel brand names –the Sunway Hotel & Resorts and Allson Hotel & Resorts – in Cambodia, Indonesia, Malaysia, Singapore and Vietnam, representing up to 3,000 guestrooms

By The Star

CIMB offers auctioned properties

KUALA LUMPUR: CIMB Group has launched a service to offer the public the chance to buy real estate that is being auctioned.

The service, called CIMB Property Mart, entails a showroom of such properties, with staff at hand to educate visitors about the auction process. CIMB will also offer financing packages for purchases.

“By setting up the CIMB Property Mart as an alternative sales channel, we hope to raise the profile of auction properties and persuade the public that they represent a viable and sound real estate investment.

Staff will be on hand at the property gallery to answer questions on the properties, action process as well as our financing packages,” said group chief executive Datuk Nazir Razak at the launch.

About RM600 million worth of properties ­— properties and land — foreclosed or owned by CIMB Bank and CIMB Islamic were available for sale as at Nov 30.

These properties mainly comprise apartments, landed properties, development land and shop lots located nationwide with the majority in Selangor, Wilayah Persekutuan, Negeri Sembilan and Johor.

“In future, we hope to leverage on the group’s regional presence and use CIMB Property Mart to attract foreign property investors into the Malaysian property market,” said Nazir.

CIMB Property Mart is located at Grd Flr, Block B, Plaza Damansara, 45 Medan Setia 1 Bukit Damansara, Kuala Lumpur or you can call its hotline number at 1300-88-0811.

By The EDGE MALAYSIA

SP Setia expects sales to jump 50pc in 2008

SP Setia Bhd, Malaysia's valuable property developer, expects sales to jump 50 per cent to RM1.8 billion in fiscal 2008 as it launches four new projects, its top official said.

Group managing director and chief executive officer Tan Sri Liew Kee Sin said growth would also come from existing projects in Kuala Lumpur, Penang and Johor, with the launch of new phases next year.

LIEW: Growth will also be accelerated by the low interest rate regime and EPF withdrawal scheme

"We are very confident we can do it as the Malaysian economy is right. The growth will also be accelerated by the low interest rate regime and EPF withdrawal scheme," Liew told reporters after announcing the group's full year results in Kuala Lumpur yesterday.

New projects slated for launch next year are Setia Sky Residences, its maiden luxury condominium project in Kuala Lumpur, and Duta Grande, Kenny Hills, comprising 15 luxury bungalows priced at RM30 million each. These will be marketed to rich tycoons in Singapore, Hong Kong, the Middle East and Malaysia.

It will also launch Setia Eco Gardens in Johor Baru, Setia Eco Villas in Cyberjaya and EcoLakes in Vietnam.

EcoLakes, SP Setia's maiden development outside Malaysia, will be launched in March 2008.

"Sales from EcoLakes would roll next year but it would only contribute to group revenue from 2009," Liew said.

SP Setia has 16 on-going projects with a combined gross development value of RM30 billion.

Its total undeveloped landbank stands at 1,959ha inclusive of 223ha in Vietnam.

The company has also been invited to expand in Libya, China and India but it wants to establish itself in Vietnam first.

SP Setia, which has a market value of some RM5 billion currently, reported a 9.2 per cent increase in 2007 net profit.

It made a net profit of RM260 million for the 12 months ended October 31 2007. Revenue was flat at RM1.15 billion.

He said SP Setia plans to launch its first integrated development project in Kota Kinabalu, Sabah, on a joint venture with one of Sabah's state authority.

"We have narrowed in on a piece of landbank located near the city area. We are negotiating currently. We hope to launch it at the end of our next financial year (Oct 2009)," Liew said.

By New Straits Times (by Sharen Kaur)

BLand to develop Vietnam township

BERJAYA Land Bhd, a unit of Berjaya Corp Bhd, will develop a 405ha site in Hanoi, Vietnam into a new township with a potential gross development value (GDV) of some RM8 billion over 10-12 years.

This would swell BLand's expected GDV from five projects in Hanoi and Ho Chi Minh City including the latest venture, to some RM40 billion, BCorp chairman and chief executive officer Tan Sri Vincent Tan said.

Tan said overseas projects would contribute significantly to BLand's revenue and profit from 2010 or 2011, with Vietnam potentially generating more earnings than its Malaysian operations over the period.

"Together with the other (four) properties that the group are acquiring in Vietnam announced earlier, we would have a total of 1,334ha which when developed has a potential GDV in excess of US$10 billion (RM33.2 billion)," Tan told Malaysian reporters in Hanoi yesterday.

"These acquisitions demonstrate our belief in the long-term growth of the Vietnam economy. The strong GDP (gross domestic product) growth of an average seven per cent for the past decade and the phenomenal increase in foreign direct investment in recent years say much about this country," he added.

Additionally, BLand - which also has businesses or projects in countries like Thailand, South Korea and China, has bought two five-star hotels in Hanoi from Malaysian businessmen and expects to seal another major project in the capital by year-end.

BLand yesterday signed a deal with state-owned Hanoi Electronics Corp to jointly develop the 405ha in Long Bien district into a mixed residential, commercial and industrial township through a 70:30 joint venture company called Berjaya-Hanel Co Ltd.

Tan said the company expects to obtain an investment licence to kickstart construction of the project within three to four months.

BLand will pump in some RM700 million into Berjaya-Hanel as its paid-up capital, while its partner should come up with some RM300 million.

BLand, in an announcement to Bursa Malaysia yesterday, said the project should cost around RM4.4 billion to develop. It will boast residentials like townhouses,villas and low and high rise apartments, as well as schools, shop offices, business and industrial parks,shopping mall, medical and sports centres.

Meanwhile, Tan reiterated that funding for its Vietnamese projects could potentially come from sales of more BLand irredeemable cumulative unsecured loan stocks (ICULs) and matured assets in Malaysia.

He noted that BLand still has about 600 million ICULs that can be sold if need be, to complement the previous sales that had generated RM570 million which were partly used to pay for its earlier investments in Vietnam.

By New Straits Times (by Zuraimi Abdullah)

BLand plans mixed development in Hanoi

HANOI: Berjaya Corp Bhd (BCorp) unit Berjaya Land Bhd (BLand) is planning a mixed residential, commercial and industrial development with open landscape and water features on about 1,000 acres in Sai Dong A, Long Bien.

BCorp chairman and chief executive officer Tan Sri Vincent Tan said the group was excited to be given the opportunity to develop the huge parcel of land was just 8km from Hanoi.

“The group’s Thach Ban New City project, which is just 4km away, has received good response and we are confident of achieving similar success with this new project,” he said after signing the memorandum of understanding with Hanoi Electronics Corp general director Nguyen Quoc Binh.

The RM8.4bil development over 10 to 12 years would be implemented via a 70:30 joint venture company between BLand and Hanoi Electronics.

“We hope to get the investment licence within four months to start works on the project,” Tan said.

Tan said he was in talks with another party for a similar sized development project and would likely make an announcement by month-end.

He is also looking to replicate his corporate strategy of diversification in Vietnam.

“We have just concluded an agreement with Starbucks. We will be a 50% joint venture partner with Starbucks in Vietnam ,” he said.

Tan added that the group would be able to decide by April whether to invest in the monorail project in Ho Chi Minh City.

“It is a risky project but we would be keen to invest if returns on investment are reasonable,” he said.

Tan expressed confidence that the group’s overseas earnings contribution would be substantial within three years.

By The Star (by Laalitha Hunt)

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Magna Prima acquires site in Shah Alam

KUALA LUMPUR: Magna Prima Bhd has plans to offer a mixed development with a gross development value (GDV) of some RM112.5 million in Section 13, Shah Alam. Plans for the project include 378 apartments as well as a 15- storey office building.

In a filing to Bursa Malaysia on Dec 10, Magna Prima announced that it has entered into a sale and purchase agreement with Muafakat Kekal Sdn Bhd via its wholly owned subsidiary, Magna Shah Alam Sdn Bhd, to acquire the 4.78-acre site located in Section 13.

The land to be developed is linked by the Kesas Expressway, Elite Expressway, NKVE and Federal Highway. It is a five-minute drive to Subang Jaya via Federal Highway and 10 minutes away from Damansara via the NKVE.

According to the developer, the purchase consideration amounting to RM9 million was arrived at on a willing-buyer willing seller basis and it plans to fund the proposed acquisition through internally generated funds as well as bank borrowings.

The proposed acquisition will enable the Group to expand its land bank for development. Magna Prima’s board believes that the tract is located in a strategic location for development and contribution from the project will enhance the earnings of the Group.

Magna Prima also has another mixed development in Shah Alam’s Section 15 and it launched the leasehold Dataran Otomobil last year.

With a GDV of more than RM250 million, Dataran Otomobil comprises 870 apartments, 336 shop offices and 200 shop lots.

Magna Prima’s other projects include Magnaville condominiums in Selayang, the high-end Avare condominiums in the city centre and Casa Prima condominiums in Kepong.

By theSun (by Loo Pik Kwan)