Encorp wants to venture into Asia, Mideast

PETALING JAYA: Having made its mark in the prefabricated building technology locally, Encorp Bhd is ready for its maiden foray overseas and has set its sights on projects in Asia and the Middle East.

It was negotiating to undertake homes, government quarters and commercial building projects in several countries in the two regions, said group chief executive officer Yeoh Soo Ann.

He said Encorp's reputation in designing, financing and constructing 10,000 teachers' quarters in Malaysia using the industrialised building system positioned the company well to seek overseas ventures that used such technology for mass housing projects.

Yeoh Soo Ann

“We will go where the returns are operationally and financially viable after taking into consideration the political and currency risks of that particular country and/or region,” he told StarBiz.

On when it expected to conclude talks, Yeoh said it hinged on due diligence and feasibility studies.

He said Encorp was also aggressively pursuing opportunities presented by the Ninth Malaysia Plan (9MP).

“We are looking at several projects in the 9MP, with a total value estimated at RM2bil. They are currently at tender and/or negotiation stage,'' he said.

Encorp returned to the black in the financial year just ended Dec 31 (FY07) with net profit of RM69.88mil against losses of RM124.84mil in FY06. Revenue more than doubled to RM327.74mil from RM143.13mil a year earlier.

Yeoh believes that the company was poised for growth and better financial results.

With Encorp's stable financial standing, coupled with successful sales of existing projects, it is scouting around for land that could yield higher returns.

“We do not fancy having a huge land-bank as that will also mean having to carry the cost over a longer term,” Yeoh said

Encorp was also looking into potential partnerships and joint ventures with property developers and landowners, Yeoh said, adding that talks were ongoing with several potential partners, locally and abroad.

An artist's impression of The Strand Damansara

He said the group was optimistic its property division would continue to enhance profits in the future. Meanwhile, plans have been finalised for the launch of serviced apartments and small office, home office phases of The Strand, Damansara later this year, followed by the Shopping Mall at The Strand.

“We are expecting sizeable recurring income from the rental of the mall when it is completed in 2010,” Yeoh said.

Encorp will also launch the Section U10, Shah Alam development this year. With a gross development value of RM300mil, the integrated eco-concept gated community project is expected to be completed by the second quarter 2010.

By The Star - StarBiz - (by Chan Ching Thut)

Millionaire’s property can be a ‘small estate’

A “small estate” is the property of a deceased person having a total value of RM2 million or below, but it must at least consist of some land or a building (that is, immovable property).

The property of a deceased person is known as an “estate” in law. In addition to the land or building, a small estate may consist of movable property, such as cash, money in bank savings or current account, unit trusts, and company shares.

After the recent amendment known as the Small Estates (Distribution) (Amendment) Act 2008 (the amending Act), the value of a small estate is increased to RM2 million. In other words, after the amendment, the property of a deceased millionaire can be a “small estate”.

The debts of the deceased are not to be deducted when ascertaining the value of a small estate. A trust property is not to be included either in the small estate. A small estate must include some landed property (known as immovable property in law) for example, a piece of land, a house or a shop. Without landed property, it cannot be a small estate.

Even if the property of the deceased person consists of only a few thousand ringgit in cash, it does not become a small estate. Movable property (such as cash or company shares) does not constitute a small estate.

Value increased
The amending Act received the Royal Assent on Jan 24, 2008, and was published in the Gazette on Feb 7, 2008. It will come into force on a date to be appointed by the relevant minister by notification in the Gazette.

The most important amendment introduced by the amending Act is the increase in the value of a small estate. The value of a small estate is increased from RM600,000 to RM2 million.

Such an increase is phenomenal. The total value of a small estate is now up to RM2 million. It is 333% of the original value of RM600,000 before the amendment. The drastic increase in the value of a small estate in a way reflects the fast spiralling inflationary trend in this country.

It is instructive to note the upward adjustments in the value of a small estate over a period of 50 years since the inception of the principal Act in 1957.

A “small estate” was worth only RM10,000 or below, when it was first introduced in 1957. The principal Act came into effect on Oct 1, 1957, soon after this country achieved independence.

The recent increase in the value of a small estate from RM600,000 (since 1990) to RM2 million is considerable. The adjustment of 333% in the value of a small estate has been the highest since the introduction of the principal Act (apart from the sixfold increase in 1979).

If one compares RM2 million with the initial RM10,000 (the value of a small estate first introduced in 1957), the former is 200 times the latter! This would mean that over a period of 50 years, the increased value of a small estate amounts to 20,000% (or 200 times) its initial value!

Could it be that the government is anticipating that an impending fuel price hike would lead to a steep increase in property prices?

Where to file the petition?
After the amendment, the petition is to be lodged in the district where the immovable property (a piece of land or a house) is situated: s.8(1). The petition need not be lodged in the district where the greater part of the property is situated.

For example, if a house is situated in district A, the petitioner of a small estate must file his petition in district A, though the greater part of the property is found in another district, say district B. Even though the house may constitute a minor part of the small estate, the petition must be filed in the district where the house is situated.

The Director of Lands and Mines (PTG) of the state concerned, or the Director General of Land and Mines (PBGT) of the Federation, has discretionary power to order that the petition be heard by the land administrator of a particular district.

But someone must make the application. The order made must appear to be convenient to the parties or witnesses, or it is in the interest of justice to make such an order. The order made is final and not subject to any appeal: proviso to s.4(2).

Sale of movable property by land administrator
The land administrator has been given additional power to sell property. Under a new provision, if two (or more) beneficiaries are each entitled to a share in any movable property (such as company shares), the land administrator may sell the property. But, when exercising his discretion, he must have regard to the interests of the beneficiaries concerned: new s.15(5A).

Transitional provision
Under the transitional provision, all small estate petitions filed before the amendment, are to proceed under the old procedure. Only petitions lodged after the amendment are to be heard according to the new procedure.

All petitions for small estates distribution lodged before the coming into force of the amending Act, must follow the previous procedure: s.12(1) of the amending Act.

All small estate matters commenced before the amending Act takes effect (or pending before a land administrator), must continue to be heard under the previous procedure: s.12(2) of the amending Act.

Conclusion
The Small Estates (Distribution)(Amendment) Act 2008, increases the value of a small estate to RM2 million. As a result, a millionaire’s property may be treated as a small estate. It reflects the rapid inflationary trend taking place in this country.

Every land office must therefore have sufficient resources to deal with the influx of small estates matters. Otherwise, the accumulation of small-estate cases and undue delay in their disposal are inevitable. It is hoped that the authorities concerned have taken necessary steps to cater for such eventualities.

The writer is a member of the Conveyancing Practice Committee, Bar Council, Malaysia www.malaysianbar.org.my

Note: This column is brought to you by the Malaysian Bar Council for your information only. It does not constitute legal advice. You should therefore seek professional legal advice for your specific needs. Neither the Malaysian Bar nor the Sun Media Corporation Sdn Bhd shall be liable to any reader who suffers losses as a result of relying on this column.

Articles by theSun (by Yang Pei Keng)

Local REITs gain global attention

Cross-border REIT partnerships will benefit all

BARELY three years after Malaysia's first real estate investment trust (REIT) was on the stock exchange, the industry crossed a new milestone with Wednesday's signing of a partnership agreement between Hektar Klasik Sdn Bhd and Singapore-based Frasers Centrepoint Asset Management (M) Pty Ltd (FCAM).

Today, not only have local REITs grown in market capitalisation to over RM1bil, investors can look forward to enjoying the benefits of this first cross-border REIT partnership. This surely augurs well for the industry as a whole and for the REITs in terms of global recognition by institutional investors.

Commenting on the cross-border REIT partnership, Hektar Asset Management Sdn Bhd chief executive officer Datuk Jaafar Abdul Hamid said the joint venture would benefit both parties.

“It would help harness the combined strengths of the sponsors: FCAM's strategic reach and financial resources within South-East Asia and Hektar group's experience and expertise in Malaysia.

“We have extensive understanding of the Malaysian market and we are gaining momentum in growing the REIT's asset size, especially with our recent retail acquisition in Johor,” he said.

The joint venture agreement is part of the sale and purchase agreement entered into between Hektar Klasik and Fraser Centrepoint Ltd (FCL) on May 16, 2007 for FCL's acquisition of a a 40% stake in Hektar Asset Management Sdn Bhd, the managers of Hektar REIT.

FCL fully owns FCAM and also has a stake in Frasers Centrepoint Trust (FCT), which purchased a 27% stake in Hektar REIT for RM104.5mil in June 2007. FCL is a unit of Fraser & Neave Ltd.

A foreign REIT analyst said the partnership would bring about tremendous synergy and was a win-win situation for both Hektar REIT and FCT.

“It shows commitment by FCAM to grow FCT via a stake in Hektar REIT and also benefits the latter through the combined expertise of the REIT managers from both trusts,” he said.

The Securities Commission had earlier approved the appointment of two directors from FCAM and a third independent director to the board of Hektar Asset Management.

Asked if there could be more cross-border REIT partnerships in time, the analyst said it would be difficult to predict but certainly other REIT managers would be looking at ways to increase their trust asset size, exposure to foreign investors and market capitalisation via various means including cross-border REIT partnerships and mergers and acquisitions.

He said REIT managers could also work with property developers and third parties with good prime assets in strategic locations to inject matured properties into the trusts.

“Every trust is trying to grow by attracting more investors and the competition for funds is getting tougher,” he said.

By The Star (by Danny Yap)

Acerinox picks Malaysia for first Asian plant

The RM5bil facility is Johor's largest foreign investment

JOHOR BARU: Spanish steel company Acerinox S.A. is investing RM5bil in its new production plant in Tanjung Langsat near Pasir Gudang.

The Johor plant will be the company's first plant in Asia. Its existing plants - all developed with partner Nisshin Steel of Japan - are in Spain, South Africa and the US.

Acerinox's investment is the single largest foreign direct investment (FDI) to be secured by Johor to date.

The integrated plant, on a 140ha site, will be developed in phases. When fully ready in 12 years, it will have the capacity to produce one million tonnes of stainless steel, including 600,000 tonnes of cold-rolled steel sheets, annually.

“This is a major success for Johor to continue to position itself as the premier destination for capital-intensive high-technology industries in Malaysia,” Mentri Besar Datuk Abdul Ghani Othman said in a statement yesterday.

Since 2005, maintained its position as the most popular destination for FDIs in Malaysia, he said. The state attracted RM9.24bil in FDIs last year.

Under phase one, the partners will spend RM1bil to build a 240,000-tonne-per-year production line of which 182,000 tonnes will be cold-rolled steel.

The line, which will come on stream in 2011, will include a cold-rolling mill, a combined annealing and picking facility, a skinpass and a finishing shop.

Ghani said Aceronix and Nisshin Steel picked Johor because of its strategic location and excellent connectivity to potential markets within Asean as well as Australia and India.

Once completed, the Malaysian plant - together with the existing three facilities - will boost the group’s installed capacity to 4.5 million tonnes per year.

By The Star (by Zazali Musa)

MRCB Utama offers resort features in Laman Suria

An artist's impression of the Laman Suria apartments

MRCB Utama Sdn Bhd, a subsidiary of Malaysia Resources Corp Bhd, is trying to lure those working in the city of Kuala Lumpur to move to Kajang, Selangor, with its Balinese-themed Laman Suria apartments in Taman Kajang Utama.

Describing them as “e-resort” apartments, MRCB Utama’s sales and marketing manager Chiang Hon Kit said the 4-acre freehold development has resort features with each unit equipped with an alarm system, an electric clothes dryer and entry via personal access cards.

Comprising a total of 255 units, priced from RM88,000 to RM168,00, buyers have a choice of five designs with built-up sizes of 687 sq ft, 840 sq ft, 850 sq ft, 870 sq ft and 879 sq ft.

Chiang told Property Plus that the response has been very encouraging. “We are banking on Laman Suria’s affordable pricing, easy accessibility and full-condo facilities to attract potential buyers,” he said.

Block A of the 5-storey apartments were launched in the iddle of 2006, comprising 99 units that have been fully taken up, while 50% of Block B’s 87 units were sold within a couple of weeks, said Chiang. The units are currently under construction.

“Block C, with 69 units, is scheduled for launch soon,” he added.

The bulk of purchasers for the earlier units are those working in KL. “They prefer to live on the outskirts of the city, away from the crowds and traffic. Laman Suria is easily accessible by major roads as well as the SILK and North-South Expressways,” said Chiang.

As many as three major universities, shopping complexes and other amenities are in the vicinity of Laman Suria. Besides the quality finishing, Chiang adds that, “a great deal of effort was also put in the landscaping aspects of Laman Suria to give residents a ‘resort’ ambience.” He said among the facilities at the apartments is a swimming pool, a wading pool, a BBQ pit, changing rooms, a multipurpose hall, a convenience store, a launderette, 24-hour security service and a surau.

“Those interested in purchasing a unit in Laman Suria have to pay a down payment of only RM100,” said Chiang.

MRCB Utama’s completed projects include the Residensi Ayu small office home office (SOHO) apartments, also in Kajang.

The SOHO apartments are priced from RM90,000 onwards. The company has also ongoing projects in Negri Sembilan and Penang.

By theSun - Property Plus -(by Tim Leonard)

I&P plans four launches in Bangi

An artist's impression of I&P's Phase 1P3 2-storey cluster home

ISLAND & Peninsular Bhd (I&P) has planned four launches comprising terraced and semi-detached homes this year for its Alam Sari project located in the township of Bangi, Selangor. Having sold out Phase 1P1 of Ilmia during its sales launch in November last year, the developer will be launching Phases 1P2 and 1P3 before the end of this month.

I&P group managing director Datuk Jamaludin Osman told PropertyPlus that most of the buyers of Phase 1P1 were from and within the Bangi locality. “Buyers in Bangi look for landed property with freehold titles. There are purchasers who upgrade from living in apartments to landed homes; there are also some who upgrade from terraced homes to semidees,” he shared.

Phase 1P1 homes were priced between RM248,088 and RM512,760 and offered 90 units of 2-storey terraced homes sized at 22ft by 75ft with built-ups ranging from 2,099 sq ft to 2,271 sq ft. With Phase 1P2 and 1P3, I&P expects to put out 60 units of 2-storey terraced homes and 32 units of 2- storey cluster homes respectively.

Homes in Phase 1P2 are sized at 22ft by 75ft with built-ups from 2,044 sq ft to 2,500 sq ft while Phase 1P3 homes are sized at 33ft by 85ft with builtups between 2,400 sq ft and 2,600 sq ft. The homes are tentatively priced at RM255,000 for Phase 1P2 and RM448,000 for Phase 1P3. According to Jamaludin, these homes are targeted at government servants, businessmen and a multiracial community.

“Phase 1P3 offers cluster-style homes, which are planned in clusters and short rows. The homes are built according to the natural terrain and are functional, with a practical layout suitable for modern-day needs. These homes are also designed to be protected from the sun and rain,” explained Jamaludin.

Located within the heart of Bangi, about 3.5km south of Bandar Baru Bangi, Alam Sari has a gross development value (GDV) of RM1 billion and takes up 432.5 freehold acres. Set within the vicinity of higher learning institutions such as Universiti Kebangsaan Malaysia (UKM), the EPF Training Centre (ESSET) and the Petronas Management Training Centre, the “Neighbourhood of Academia” township will feature academically themed parks and precincts.

Upon completion, the township is expected to have 3,435 units of residential properties including semidees, bungalows, orchard lots and apartments as well as shops, convenience centres and a supermarket or mall complemented by facilities and amenities such as schools, kindergarten, a community hall, police station, parks and gardens.

With an expected population of 17,000 upon full occupation, the township would take between eight and 10 years to complete. “Construction for Phase 1P1 which commenced in November last year, is currently in progress and targeted for completion in the middle of 2009,” said Jamaludin.

I&P’s other developments include Bandar Kinrara, Alam Damai in Cheras, Alam Impian in Shah Alam, and Kota Bayuemas in Klang. In early January, the developer launched Phase 4D5 of shop offices at the RM3.9 billion freehold township, Bandar Kinrara. Out of 30 units, only 20 were opened for sale while the remaining 10 units were retained as assets, said Jamaludin.

Currently about 30% sold, the shop offices come in six designs with standard lots measuring 22ft by 80ft and builtups between 4,960 sq ft and 10,896 sq ft. Pegged between RM1.68 million and RM3.99 million, these units are targeted at business owners, banks, restaurant owners and investors. “The land is currently being cleared, and the project is targeted for completion within three years,” said Jamaludin.

Meanwhile at the residential parcel of Bandar Kinrara, the developer launched Phase 9A9A also known as “Butik Bungalow”. According to Jamaludin, the 14 units of 2-storey bungalows have been 30% sold since it was opened for sale in November last year. Available in five types and five designs, the homes are priced between RM1,137,888 and RM1,459,888.

There are also two bungalow lots for sale within this phase. “These are affordable and modulardesign bungalows with big land areas, which allows room for future expansion.

The homes are targeted at the middle to higher-income group, and for those looking to upgrade,” said Jamaludin. The bungalows come in lot sizes of between 7,200 sq ft and 11,000 sq ft and built-ups of between 2,714 sq ft and 3,030 sq ft. “It is now at the foundation stage and will be completed in approximately two years,” he added.

By theSun (by Yeong Ee-Wah)

The rules of Renovating

People renovate homes for a myriad of reasons, but be aware that the end result could raise the value of your property or, actually make it harder to sell.

RENOVATING one’s home is something very personal and people do it for various reasons. Whatever your reason may be, renovations can enhance the value of your home. From basic touch-ups to expensive extensions, the different types of renovations done will affect the value of your home differently. Nonetheless, spending a huge sum of money does not necessarily mean that you will get the same returns when you put your property on the market. In fact, it may even be difficult to sell your property.

Several real estate agents PropertyPlus spoke to agree that before deciding on any renovations, it is important to work out a reasonable budget while keeping in mind the trends that would appeal to a wider market.


Teh: Don't go for unconventional renovations

“Keep things simple to appeal to a broader market and don’t go for unconventional renovations,” said Kayte Teh, principal of Pacific Alliance Realty. From Teh’s experience, a lot of buyers prefer doing their own renovations and would only consider buying a renovated property if it’s not too pricey. “Heavily renovated homes are always priced at a premium, but the market for it is small,” she stated.


Ng: Keep renovations, simple, nice and cozy

Alice Ng of Reapfield Properties (KL) Sdn Bhd agrees. “If you’re going to renovate, keep it simple, nice and cozy. Do not go for grand renovations, as it makes it difficult for the new owners to remodel or redecorate,” said Ng.

Andrew Ngiam, also from Reapfield Properties recommends the modern and contemporary look. “Renovations are quite personal, it depends on personal preference and taste, so renovate tastefully. If it looks like something you can pick out of an interior magazine, it would most probably sell,” he said.


Goh: Don't spend more than 50% of the cost of your home

When it comes to budget, the rule of thumb is not to spend more than 50% of the cost of your home on renovations, said William Goh, head of sales at Reapfield Properties (KL). “If you’re looking to renovate, make sure the cost is within your budget. Extensions are costly, but it will greatly affect the price; an increase in space translates to an increase in selling price.”

A renovated home could increase the value of the property by 10% to 20%, said Goh. “It can even increase by 30% to 40% if the renovations are properly done, with high quality finishes. The home should also be in very good condition,” he added.

Enhancing value
According to Teh, who has been in the industry for 15 years, some things that would enhance the
value of a home include wet and dry kitchens, spacious master bedrooms and living areas or a remodeled bathroom. “A well-designed garden helps too. A landscaped garden, koi pond, water features or perhaps a quiet area in the garden all significantly add value to a home,” she said.

Ngiam agrees. Having been in the business for eight years, he said the kitchen and bathroom are the most important areas of a home. “People are looking at modern kitchens and modern bathrooms. The modern and clean look is the trend now.”

The garden is very important as well, said Ngiam. While adding items, such as water features, ponds and fountains, enhances the aesthetic value of the home, it also lends a feng shui appeal; especially features with elements of flowing water.


Foo: Renovating a very old house is not recommended

Meanwhile, SM Foo of Oriental Realty does not recommend renovating an old house. “If the house is more than 30 years old, the design would be really outdated. Just a basic touch-up or simple refurbishment would do,” said Foo, who has been in the business for 13 years. It is not worth it to spend too much on renovations just to remodel an old house, unless there is enough capital for grand renovations, which would place the property in a premium market, he explained.

Extensions, especially to the back of the house, are very common, said Foo. “An extension of between five to eight feet to the back would cost approximately RM20,000,” he said, adding that
an extension could add to the value of the home about 40% of the cost.

Market feedback
From her experience, Teh said, it is difficult to sell renovated linked houses at a premium whereas bungalows sell better because the unit is larger and offers more space. “Buyers are willing to spend more if the cost is justified with space.

Nicely renovated homes are sellable of course, but it narrows down the market. In which case, you need to find the right buyer,” Teh shared. Although the market for premium, renovated homes is small, renovated mid-range and lowrange homes are more common compared to renovated bungalows, said Goh. “If a buyer is looking for a bungalow, he most likely wants to do his own renovations, and would have the capital to do so,” he added.

Goh, who has been in the industry for 20 years feels the target market for renovated mid-range and low-range homes are mostly first-time buyers such as young couples who do not have the capital to do their own renovations. “They prefer a unit in which they can just move in without having to spend too much.”


Renovated kitchens can add to the value of a property

Trends
The current trends in renovation, observed Teh, are Balinese and modern contemporary. “Many homes are sporting Balinese-inspired wood flooring and trimmings. The modern design is also hot right now, which is basically a really clean cut look featuring colours such as black and white or metallic,” she said.

“Spend on good quality built-ins with granite tops and have separate wet and dry areas in the kitchen. The kitchen should have a modern and classy feel,” advised Ngiam. “In the bathroom, rainshowers (a type of shower head attached to the ceiling) are the ‘in’ thing now,” he added.

Other features such as lighting and flooring also play a part in creating the look and feel of a home. “Downlights are really popular, and buyers generally don’t like fluorescent lighting, which can be too harsh,” said Ngiam. “Flooring depends on individual taste, but keep in mind if you decide to put in wood flooring, make sure it is of high quality. Expatriates also favour wood flooring, if you are planning to sell or rent to an expatriate,” he added.

Foo on the other hand recommends getting a designer. “You can tell when a home has been modelled by a designer; it makes a difference,” he said. Although it can be costly, it is worth it as properly renovated homes are definitely easier to sell as well as to rent.

Keeping cost down
If you’re strapped for cash, there are still ways to enhance the value of your home. “Finishings, a new coat of paint and built-ins add value to a home without having to spend too much,” said Goh.

“Refurbish your home to make it look nice, touching up parts that have gone through wear and tear. A change of flooring, especially if it is parquet, makes a difference. If you have wooden flooring that isn’t too old, a coat of varnish would do the trick,” he added.

According to Ng, basic touch-ups are adequate. “Fix any and all obvious problems; buyers are especially particular about watermarks, which lead them to think that there is a piping problem,” she advised. “Clean and tidy your home prior to viewings, to make it look spacious. First impressions are important,” she added.

“As a rule of thumb, make your house look nice and presentable,” said K Soma Sundram, president of Malaysian Institute of Estate Agents (MIEA).


Soma: Renovations are a personal choice

Leaky roofs, peeling paint, a rusting gate, cracks in the wall, watermarks, termite problems and a faulty toilet should be fixed. “Spend some money to make it look habitable,” advised Soma.

“One of the things we’re [estate agents] required to do is to make sure any property for sale is in habitable condition and free of repairs. Therefore, the seller should make the necessary repairs as new owners would be turned off by having to fork out more than the cost of the property,” he explained.

Although renovations — especially those done tastefully — definitely add value to a property, there are no set rules to follow. “Renovations are a personal choice; it is to meet the home owner’s needs and is ultimately for the home owner to live in and to enjoy,” he said.

By theSun - PropertyPlus - (by Yeong Ee-Wah)

Wal-Mart to headline at Retail City conference

The driving force behind the “pile ‘em high, sell ‘em cheap” philosophy of the world’s largest retailer is to share his insights with Middle East business leaders on turning a modest business into a global giant.



Don Soderquist (pix), former senior vice-chairman and chief operating officer of Wal-Mart, will be giving the keynote address on the remarkable growth of the US retail giant at Retail City, which takes place from June 1-3, 2008, at the Dubai International Exhibition Centre.

“No other executive since the legendary Walton himself has embodied the principles of the company’s culture. Don will share his knowledge and experience of Wal-Mart’s amazing success, something that regional retailers should find invaluable,” said Irina Awote, conference director of Retail City 2008, organised by IIR Middle East.

Founded by Sam Walton in 1962, Wal-Mart is the world’s largest public corporation by revenue, according to the Fortune Global 500. Wal-Mart was built on Walton’s “pile ‘em high - sell ‘em cheap” philosophy. The company built on this by re-investing profits to obtain better terms from suppliers, in turn leading to better deals for customers.

After Walton’s death, Soderquist became known as the “keeper of the culture” and believes business ethics are not a luxury but an essential element in creating high performance organisations.

Now with 7,100 stores in 15 countries, Wal-Mart recently reported three months sales above US$100 billion (RM318.5 billion) for the first time in history. With almost two million employees, Wal-Mart is also the largest private employer in the world and the fourth largest utility or commercial employer after the Chinese army, the UK National Health Service, and Indian Railways.

“Put into perspective, Wal-Mart is bigger than Europe’s Carrefour, Tesco and Metro combined,” added Awote.

The Retail City 2008 exhibition and conference brings together global retailers, investors, shopping centre developers, franchise networks, shopping centre managements, architects and regional authorities to discuss the dynamic retail sector both in the Middle East and other emerging markets.

This year a new Retailers Pavilion will also be unveiled providing invaluable networking opportunities for both new and established retailers to expand their brand presence and to make direct contact with mall management, retail developers, investors and operators.

The Retail City Awards will also take place at the June event, rewarding excellence in the retail industry, with categories such as Emerging Market Retailer, Retailer of the Year, Corporate Social Responsibility, Architectural Designer, Franchise Operator, Mall of the Year and World’s Best Retail Destination.

By theSun

S$18 million revamp of Tiong Bahru Plaza

SINGAPORE: Shopping mall management group, AsiaMalls Management, the joint venture between ARMF and Singapore Exchange-listed Guthrie Group, announced recently that it will be repositioning Tiong Bahru Plaza (above), one of the suburban malls in its portfolio which includes six other malls — Hougang Mall, White Sands, Century Square, Liang Court, Central Plaza and the upcoming Tampines 1.

Two floors of the Central Plaza office tower (acquired early last year) located next door to Tiong Bahru Plaza will be converted to civic use. This allows the latter to provide additional gross floor area for retail use. Targeted for completion by 3Q2008, the estimated cost of the revamp is S$18 million (RM41.3), and will add another 19,000 sq ft for retail and F&B outlets, while the existing areas will be reconfigured.

By The Edge Singapore

Malaysian property mart outlook 'very bright'

Prospects for the Malaysian property market this year continue to be bright, with the residential sector expected to be the star performer yet again, says top real estate services company CH Williams Talhar & Wong (WTW).

The commercial sector, however, is set to become increasingly important as property trusts actively look to expand and foreign property funds continue to show keen interest here.

As usual, the Klang Valley is expected to lead the market, but things are also looking good in places like Johor Baru (Johor) and Butterworth (Penang).

"Overall, the outlook is very bright. Property prices haven't peaked. Foreign interest is helping drive the market, but there's also a lot of local interest," WTW managing director Goh Tian Sui said yesterday at the launch of its property market and CEO opinion survey for 2008.

Concerns over the impact of the US subprime crisis remain a downside risk, but it has so far not affected the local property market, he said.

"Foreign investors are still actively looking for spots to buy Malaysian assets. People who come to us are prepared to pay top dollar. There's so much capital chasing too few buildings," he remarked.

He predicts that Malaysia, in line with markets elsewhere, will see yields of less than six per cent this year in the Klang Valley, compared with between 6.25 per cent and seven per cent now.

Malaysia's residential sector, which typically accounts for about 60 per cent of total property transactions, has been the best-performing of all sectors since 1997.

Current hotspots include the Kuala Lumpur city centre, KL Sentral, Melawati-Ulu Kelang, Mutiara Damansara, Mont Kiara/Segambut, Kota Damansara and Menjalara/Kepong.

Boutique developments, rather than townships, are expected to do better and are set to be the trend this year.

By New Straits Times (by Adeline Paul Raj)

Property market to keep drawing foreigners

KUALA LUMPUR: The property market will continue to attract strong foreign interest, says international property consultant CH Williams Talhar & Wong Sdn Bhd (WTW).

Managing director Goh Tian Sui said the economic slowdown in the US and Britain had drawn investors to Malaysia due to the higher dividend yield compared with its regional peers.

The exemption of the real property gains tax (RPGT) announced in Budget 2008 was also another pulling factor, he told reporters at the release of the WTW Property Market Outlook for 2008 & CEO Opinion Survey yesterday.

According to the survey results, 90% of respondents said the RPGT exemption would have a positive impact on the local property industry, while 96% thought the exercise would increase the volume of transactions in the industry.

It also showed 76% of respondents felt the flexible monthly withdrawal by Employees Provident Fund contributors would drive up the local property market.

Last year, integrated mall KL Pavilion, which is 49% owned by Singapore-based Pacific Star group, together with The Gardens@MidValley and Sunway Pyramid 2 contributed 63% of new local retail space, said Goh.

He added that local retail space grew by 14.5% to 36.87 million sq ft last year from 2006.

“We expect another seven retail centres in the Klang Valley to be completed this year,” he said.

Meanwhile, the residential market – principally in the KL City Centre area – remained the “star performer” in the property sector.

In the industrial sector, foreign investments rose 57% to RM21.8bil for the first nine months ended Sept 30, 2007 from RM13.9bil in the previous corresponding period, while domestic investment slipped 17%.

Goh said the top three foreign investors for the period were from Japan, Iran and Singapore.

“We expect the healthy demand for investment-grade properties to continue this year,” he said.

In the hospitality sector, WTW predicted hotel occupancy rate in the country to continue to be over 70% this year.

Last year, tourist arrivals increased to 20.97 million from 17.5 million in 2006.

By The Star

IDR highway project to be completed by 2010

JOHOR BARU: The construction of the RM1.1bil Coastal Highway has begun and the 15km six-lane project is expected to be ready by 2010.

The highway's seven interchanges and three bridges would be a lifeline for the Iskandar Development Region (IDR) as it provides a vital road link between the east and west of South Johor, Mentri Besar Datuk Abdul Ghani Othman said.

He said site-clearing works had begun and they would be followed by piling and construction.

“It is one of the biggest infrastructure projects within the IDR,” Ghani said in a statement.

The highway will connect Johor Baru city to the Johor State New Administrative Centre in Nusajaya (JSNAC) and the Second Link crossing.

JSNAC, the nexus of the IDR, is 90% completed and will be ready for occupation by June.

The highway project is spearheaded by the South Johor Investment Corp (SJIC), the master developer and investor in strategic projects.

The highway will be a boon for visitors from Singapore using the new Customs, Immigration and Quarantine Complex here as it will provide direct access to Danga Bay, Nusajaya, JSNAC and a proposed theme park.

“The economic spin-offs from the highway project will be tremendous as it will lead to the creation of new growth centres in Skudai and Gelang Patah,” Ghani said.

He said at least two mega projects worth billions of ringgit would begin this year in the IDR, including the RM4.2bil Node 1 project funded by Arab investors.

By The Star

RM540m boost for Iskandar region

Three Malaysian companies are investing a total of RM540 million in new waterfront properties within the Iskandar Development Region (Iskandar), Johor Menteri Besar Datuk Abdul Ghani Othman said yesterday.

The projects — by Kota Selat Tebrau Sdn Bhd (KST), Best Reality Point Sdn Bhd and Tune Hotels Sdn Bhd — are all coming up in Danga Bay, which is within a 25km stretch of the Iskandar waterfront.

KST, a special purpose company under the South Johor Investment Corporation (SJIC), is the master developer of waterfront land in Nusajaya and Danga Bay, which are among the two prime locations within the Iskandar.

KST will develop Iskandar’s first high-end serviced condominium called Oakwood Residence Johor (ORJ).

ORJ, a joint venture with Singapore-based Oakwood Asia Pacific Pte Ltd, will occupy a 22-storey tower block offering 235 fully-serviced units. Also to be built are a podium and two 40-storey towers, which will be converted into serviced residences.

This RM400 million integrated-building coming up on a 2.43ha waterfront site will be jointly developed by KST and Danga Bay Sdn Bhd. Construction is due to start in April.

Construction will also start this month on a new 371-room four-star hotel by Best Reality Point. The company is investing RM120 million in the development, including RM11.5 million for land.

The 25-storey hotel, which will be managed by the International Hotel Group, will be ready by mid-2010.

Tune Hotels, meanwhile, is investing RM20 million to open a 220-room hotel in Danga Bay, with construction scheduled to start by June.

The hotel, when ready early next year, will have café and fast-food outlets, a 24-hour convenience store, Internet room, safe room, male/female surau, self-service laundry and luggage room.

Abdul Ghani said to date, Iskandar has attracted some RM22 billion in total investments, and the hive of activity has spurred a property boom in Johor Baru with no less than 25 local developers investing billions of ringgit over the past year into new townships and residential schemes.

Abdul Ghani said all indications are that Iskandar is on track to achieve the total investment target of RM47 billion by 2010.

“The IDR is the brainchild of the Prime Minister. We are anxious to roll out all planned projects fast to fully realise his vision for south Johor,” he said in a statement, adding that more announcements about new Iskandar investments are likely soon.

By New Straits Times

Local firms to build IDR waterfront projects

JOHOR BARU: Three local companies will undertake new waterfront property projects worth about RM540mil in the Iskandar Development Region (IDR) this year.

Kota Selat Tebrau Sdn Bhd, Best Reality Point Sdn Bhd and Tune Hotels Sdn Bhd have projects slated in Danga Bay, which is within the 25km stretch of the IDR waterfront.

“The investments are a clear indication of confidence not only by foreign investors but also among local investors in the IDR,” Johor Mentri Besar Datuk Abdul Ghani Othman in a statement.

To date, IDR has attracted some RM22bil in investments, especially from Middle Eastern investors. It is on track to achieve the targeted RM47bil by 2010.

He said no less than 25 developers had invested billions of ringgit in the IDR over the past one year.

Ghani, the co-chairman of the Iskandar Development Region Authority (IRDA), said more announcements on IDR investments would be made soon.

An artist’s impression of Oakwood Residences, Johor Baru

Kota Selat Tebrau will develop the IDR’s first high-end serviced condominium, Oakwood Residence Johor (ORJ), which is a joint venture with Singapore-based Oakwood Asia Pacific Pte Ltd.

Oakwood manages serviced apartments in China, India, Indonesia, Japan, South Korea and Thailand, with 19 more properties due to open over the next two years across the Asia-Pacific.

The RM400mil project comprises a 22-storey tower block with 235 fully serviced units, two 40-storey towers which will be converted into serviced residences, and a podium.

Best Reality Point will be investing RM120mil in a 25-storey hotel with 371 rooms which would be managed by the International Hotel Group on its completion in mid-2010.

Tune Hotels is investing RM20mil in its 220-room hotel, with construction to start in June for completion in early 2009.

The no-frills hotel operator plans to open six more hotels this year in Ipoh, Penang, Miri, Kuching, Kota Kinabalu and at the Low Cost Carrier Terminal in Sepang.

By The Star (by Zazali Musa)

PKNS expects De Rozelle Phase 3 to sell out

PKNS' De Rozelle Condominium is very popular with young buyers

PETALING JAYA: The Selangor State Development Corporation (PKNS) expects the third and final phase of De Rozelle Condominium in its Kota Damansara township to sell out within a week of its launch.

“With 300 interests received and only 100 units available, we expect Phase 3 to be sold out fast,” said Mohd Wazir Bin Haji Abdul Gani, public relations manager of PKNS.

According to Wazir, the project is very popular especially among the Chinese population, with a lot of buyers being newly weds and young working adults. A large portion of buyers is in the younger age group, with 20% to 30% of buyers aged 35 years and above.

“The demand is good because of the location; close to TV3, the public Seri Selangor Golf Club, Bandar Utama, Tropicana and Petaling Jaya. There are also access roads nearby such as the North Klang Valley Expressway (NKVE) and the Damansara Puchong Highway (LDP),” he explained.

De Rozelle Condominium takes up 11.70 acres and comprises four 100-unit blocks. The project was first launched at the end of 2005. Sold under the build then sell (BTS) scheme, Phases 1 and 2 have since been sold out.

Phase 3, which is now open for registration, is already up to 90% constructed and will be completed with certificate of fitness (CF) by the middle of this year. The condominium units come in two designs: Type A sized at 998.35 sq ft and Type B sized at 1,040 sq ft. Prices for Phase 3 begin at RM185,000, an increase from RM180,000 for Phase 2 and RM175,000 for Phase 1.

Wazir also revealed that PKNS has plans to develop its first SoHo project, also in Kota Damansara. “Piling works have already begun, but It’s too early to say much except that it will have bigger and more expensive units, equipped with modern facilities and perhaps a SMART home system. All these will be announced in due time,” he added.

PKNS’s other projects within the 3,924- acre township include shop offices and 2-storey superlink homes. Priced from RM850,000 and RM571,000 respectively, both projects are almost sold out with only Bumiputera lots left.

The development of the Kota Damansara township commenced in 1981 and is expected to accommodate 120,000 residents upon completion. It features a 4242.79-acre forest reserve and houses the 780.85-acre Selangor Science Park 1.

By theSun (by Yeong Ee-Wah)

More developments for IDR

JOHOR BARU: Three Malaysian companies are investing a total of RM640 million in new waterfront properties within the Iskandar Development Region (IDR).

The projects by Kota Selat Tebrau Sdn Bhd (KST), Best Reality Point Sdn Bhd and Tune Hotels Sdn Bhd are all coming up in Danga Bay, which is within a 25km stretch of the IDR waterfront.

Johor Menteri Besar Datuk Abdul Ghani Othman said the investments were a clear indication of, not only strong foreign interests, but also growing local confidence in the IDR.

To date, the IDR has attracted some RM22 billion in total investments, especially from Middle Eastern investors. Major local firms like UEM Land Bhd are also blazing a trail with signature developments in the southern corridor.

The hive of activity has also spurred a property boom here with no less than 25 local developers investing billions of ringgit over the past year into new townships and residential schemes.

Ghani said all indications were that the IDR was on track to achieve the total investment target of RM47 billion by 2010.

The new project announcements by KST, Best Reality Point and Tune Hotels are among the latest developments coming up along the waterfront here.

KST will develop the IDR’s first high-end serviced condominium called Oakwood Residence Johor (ORJ). ORJ, a joint venture with Singaporebased Oakwood Asia Pacific Pte Ltd, will occupy a 22-storey tower block offering 235 fullyserviced units. Also to be built are a podium and two 40-storey towers, which will be converted into serviced residences.

This RM400 million integrated building coming up on a six-acre waterfront site, will be jointly developed by KST and Danga Bay Sdn Bhd. Construction is due to start in April.

“We’ve no doubt the IDR will become a regional destination and we are excited about establishing our presence in Danga Bay,” said Oakwood Asia Pacific managing director PG Mathew. Oakwood now manages serviced apartments in China, India, Indonesia, Japan, Korea and Thailand. Nineteen extra properties are due to open over the next two years across the Asia Pacific.

Meanwhile, construction will also start this month on a new 371-room four-star hotel by Best Reality Point. The company is investing RM120 million in the development, including RM11.5 million for land. The 25-storey hotel, which will be managed by the International Hotel Group, will be ready by mid-2010.

“We are excited about the IDR as a business proposition. I want to commend the Prime Minister
for his vision and foresight in opening this growth corridor in Johor,” said company director Mok Tai Dwan.

Tune Hotels is also investing RM20 million to open a 220- room hotel in Danga Bay, with construction scheduled to start by June. The no-frills hotel, with an on-line room booking facility, is among the six the company plans to open this year in Ipoh, Penang, Miri, Kuching, Kota Kinabalu and the Low Cost Carrier Terminal in Selangor.

“We already have 25 sites under construction and are looking for more sites in strategic locations,” said Tune Hotels chief executive officer Mark Lankester, noting that the company was among the first to make a strategic decision to invest in the IDR in February last year.

By theSun

MRCB expects job orders to hit RM9b

MALAYSIAN Resources Corp Bhd (MRCB), a construction and property company, expects orders to jump by as much as 50 per cent to RM9 billion by the end of the year, its top official said.

The combined order book of the main board company currently stands at around RM6 billion to RM7 billion.

"We're quite confident in terms of where we're going," group managing director Shahril Ridza Ridzuan said in an interview with Business Times.

The two businesses typically account for up to 85 per cent of group revenue and profit, with the balance coming from environmental activities, property assets and building services, among others.

On the property front alone, the group is planning up to RM6 billion worth of new developments. It is keen on securing more projects in the Middle East, Shahril said.

MRCB was once a cash-strapped company that has managed to successfully transform over the years. Today, it is a favourite among foreign fund managers.

The group is well known for its KL Sentral development in Kuala Lumpur, which comprises hotels, apartments, shops and the rail and bus terminals.

Shahril pointed out that MRCB has achieved solid growth in revenue and pre-tax profit over the last four years.

Net profit last year, up 21 per cent to RM40.7 million, would have been about RM28 million higher had the company not decided to take in a deferred tax liability in the fourth quarter, as well as the entire cost of a bond refinancing for its KL Sentral project, he said.

The group will start to pay dividends for the first time in its history, starting from the 2007 fiscal year.

Despite the group's rosy prospects, MRCB's share price has been falling sharply this year.

Just last year, it was one of the stock market's star performers, appreciating 145 per cent as both local and foreign funds lapped up the shares.

Shahril insisted that the company's strong fundamentals remained intact.

"I think what you're seeing now is nothing more than a fallout from redemptions in the overseas market; foreign funds having to essentially sell their profitable holdings, which means companies like ourselves, Gamuda, IJM.

"If you look at the universe of stocks that we live in, everybody has gone down in this period. So we're really no different from our market segment," he said.

Analysts agreed, pointing out that at least 60 per cent of the company's shares are typically held by funds.

They continue to like the stock, with 11 of at least 12 analysts who track the stock recommending a "Buy" on it.

"It's a stock we like for three reasons: the turnaround story and strong financials, its professional management, and the exposure it offers to government spending as a government-linked construction company," said Choo Swee Kee, chief investment officer at TA Investment Management.

The shares, which ended last year at RM2.55, peaked at RM3.04 in mid-January, then started on a downward trail that became more pronounced last month. The stock closed at RM1.84 yesterday, down seven sen.

By New Straits Times - Business Times (by Adeline Paul Raj)

MRCB-led group wraps up Penang monorail talks

A GROUP of firms led by Malaysian Resources Corp Bhd (MRCB) has wrapped up talks with the government on the RM3.4 billion Penang monorail project.

The government, through Syarikat Prasarana Negara Bhd, had early this year issued the consortium a letter of intent for the project.

Second Finance Minister Tan Sri Nor Mohamed Yakcop said last month that groundwork for the monorail project was expected to begin by the end of the year.

"We understand that they are now considering all the input we've given them, and we're waiting for them to revert to us if there's anything else that they need, in terms of information," MRCB group managing director Shahril Ridza Ridzuan told Business Times in an interview last week.

If awarded the project, the consortium - comprising Penang Port and Scomi Group - plans to get the project off the ground as soon as possible.

The construction period could stretch between three and four years, he said.

"We've done a lot of preliminary work already at our own expense, in terms of identifying the routes and stations. What needs to be done essentially is to get an agreement from all the relative agencies who would be taking part in this exercise," he said.

Credit Suisse, in a recent report, said it expects details on the project to be announced in the next two to three months.

The monorail project will link the main tourist areas on the island to the city centre and its vicinity.

By New Straits Times (by Adeline Paul Raj)

Zelan wins RM802m job in UAE

A ZELAN Bhd'S wholly-owned subsidiary has been awarded a 925.3 million dirham (RM801.779 million) contract for package 2 of the Meena Plaza construction in Abu Dhabi, United Arab Emirates (UAE).

In a statement, Zelan said Zelan Holdings (M) Sdn Bhd and its joint venture partner Al Ambia Sdn Bhd received the award from Meena Holdings and they have 30 months to complete the project.

The project will not have material impact on the earnings for its financial year ending March 31, 2008 but is expected to contribute positively to future group earnings, it said.

This contract will further enhance Zelan's participation in the construction and infrastructure development of the Gulf region, particularly in the UAE, it added.

The Meena Plaza is the third building construction project for Zelan in the region.

One is the Al-Reem Island project in Abu Dhabi in which it is in a consortium with IJM Construction Sdn Bhd, Sunway Builders Sdn Bhd and LFE Engineering Sdn Bhd.

The other is the Sidra Tower project in Dubai.

Zelan-Al Ambia is a 70:30 joint venture set up to undertake the mixed development project.

Zelan, which has been leveraging successfully on its ability to work as a consortium partner to other international players, also has a significant presence in the infrastructure construction sector in the Gulf region.

Its ongoing projects include two power and water desalination plants in Saudi Arabia.

By Bernama

LBI moves far beyond manufacturing

An artist's impression of Le Putra Avenue

Manufacturer cum developer LBI Capital Bhd (LBI) expects to see a steady growth in its property development activities. Last December, the company signed a joint-venture agreement with Seribu Baiduri Sdn Bhd and Intelstyle Sdn Bhd to develop 25 detached factories in Puchong Perdana. LBI's managing director Datuk Jeffrey Ng Chin Heng (pix) told theSun that the company is expecting a gross development value (GDV) of RM80 million from the project sited on 36 acres of industrial land.



“We are still in the initial stages of planning and aim to commence the project by the end of the year,” he said.

Established in 1978 as Len Brothers Industries Sdn Bhd, LBI started out in the manufacturing of moulded-rubber products. Since then, the company has undergone several changes in terms of company name and ownership. It decided to venture into property development in 2000.

Currently, its property division contributes 95% to the group’s revenue.

“It was a natural transition for us to get involved in property development, as through our affiliated companies and some personal investments, we have over 20 years of experience in property – mainly pocket-size developments,” said Ng said. The company’s current projects include commercial and residential developments in Seri Kembangan, Sri Gombank and Johor Baru. Its completed projects include the fully-sold commercial project in Ara Damansara called Taipan Damansara II, which spans 17 acres and has a GDV of RM214 million.

On the Seri Kembangan project called Le Putra Avenue, Ng said it has seen a take-up rate of over 30% since the launch in October last year.

Le Putra Avenue offers first-of-its-kind zerolot bungalows within Bandar Putra Permai, in Seri Kembangan. The 9.2-acre leasehold development comprises 65 units of bungalows -- 31 units of 2-storey bungalows with builtups of 3,500sq ft, 26 units of 2½-storey bungalows with builtups of 4,000sq ft and eight bungalows with built-ups of 4,500sq ft. Prices start from RM700,000 and RM1 million onwards for the 2-storey bungalows and 2½-storey bungalows respectively. The project has a GDV of RM48 million.

Meanwhile, LBI’s project in Sri Gombak, called Pinggiran Permata, is 96% sold. Launched last November, It comprises 73 units of 2-storey terraced and semi-detached houses with average prices of RM350,000 and RM498,000 respectively. It has a GDV of RM23 million.

On its Johor project, Ng said the company has only seen a takeup rate of 10% for the 25 shops launched in January last year in the 13.7-acre freehold, mixed development in Taman Bukit Mewah.

LBI is planning to launch terraced houses and semi-dees this month once the show unit is ready, said Ng. The project has a GDV of RM54 million.

“It is slightly different in Johor compared to the Klang Valley. As we are developers from Selangor, Johorians tend to wait and see – they prefer to monitor the progress until the development is 50% to 60% complete before they make a commitment. They are cautious, as they might have been ‘burnt’ before,” Ng said.

In terms of undeveloped bank for future projects, Ng said LBI had none.

“Our views are rather conservative - we only acquire land for immediate development and it is not our policy to buy land and keep it. Our capital does not allow us to do so, not at this moment,” he said.

He declined to further reveal LBI's interest in some high-end projects in KL but did not deny the possibility of some strata projects in prime areas. Ng said the company is constantly looking out for jointventure partners but so far, nothing has materialised yet.

As to whether the company would dispose of its manufacturing arm, LBR Industries Sdn Bhd, Ng said it would keep the business going for now. “It’s an uphill tussle for manufacturing in Malaysia, with high labour costs and the inability to turn around but for now, we will maintain our manufacturing base – unless someone makes us a really good offer”, he said.

On overseas ventures, he said LBI has received offers to venture into Dubai. “But we must first see if we can afford to do so. We have been lucky so far – with good responses for our projects and being able to pay out dividends since 2004. We are moving on a slow and steady pace,” he added.

At the moment, Ng said LBI would be focusing mainly on property within the Klang Valley, but is open to considering other locations including Penang and Sabah, for either high-end or midrange developments.

By theSun (by Rosalynn Poh)