Million Seed to ‘build and sell’

JOHOR BARU: Million Seed Sdn Bhd has become the first developer to introduce the “build and sell” concept in Johor.

The adoption of this concept would instil more public confidence in the company, as purchasers would be buying only completed properties, said managing director Denny Lee.

Samuel Tan Wee Cheng (left)and Denny Lee

“We want to differentiate ourselves from other existing developers in Johor,” he told StarBiz at the launch of its 26 units of three-storey shop offices on Saturday.

Located along Jalan Masai Jaya in Plentong next to the newly opened Tesco Extra store, the units are expected to be completed by year-end.

Lee said the units were part of the company's 4.45ha freehold land project, which would span six years with RM418mil in gross development value.

He said phase two would have 12 units of three-storey shop offices, phase three 1,000 serviced apartments and phase four a hotel tower block.

Lee said the company would focus on developing the commercial properties as many players were already engaged in residential property projects in Johor Baru.

“Demand for shop offices in Iskandar Malaysia is also rising as more businesses are setting up operations in South Johor,” he added.

Project agent KGV-Lambert Smith Hampton (Johor) Sdn Bhd director Samuel Tan Wee Cheng said the Masai-Plentong area was fast emerging as the new commercial hub.

He also said the area was in close proximity to established housing estates such as Taman Molek, Taman Johor Jaya and Bandar Baru Permas Jaya.

He said there were several new upcoming commercial properties in the area and infrastructure projects such as the Eastern Dispersal Link Highway (EDL) and Permas Jaya second bridge to be completed in 2010.

“Masai-Plentong area is part of Iskandar Malaysia and is a brown field area with most infrastructure facilities already in place,” said Tan.

He added that location was integral to the success of commercial projects.

By The Star (by Zazali Musa)

Boon to property market

Malacca's old quarter, which include 17th Century Dutch-era buildings such as the Christ Church (right), has finally been listed as a UNESCO World Heritage site.

MALACCA: Heritage building owners in George Town and here will see a boom now that both the historical cities have been listed as Unesco’s World Heritage Sites.

Despite the strict building code regulations governing renovations to heritage buildings, over 1,000 property owners here are expected to see their property prices increasing.

19th Century Chinese Baroque style embellishments on older buildings along Jalan Hang Jebat (formerly Jonker Street) in Malacca add to the charm of the city's old quarter.

According to Foo Gee Jen, a director of a property evaluation company, property prices for homes along Jonker and Heeren streets have risen steadily over the past 15 years.

“Depending on its size and condition, a unit used to fetch up to RM200,000 fifteen years ago.

“In 2005, property was valued at RM120 per sq ft but shot up to RM200 per sq ft recently,” he said, adding that a unit could now fetch up to RM800,000 to a RM1mil.

He said that the inscription as a World Heritage Site would push prices of the buildings up almost immediately by at least 20% to 30%.

Malacca Heritage Trust president Debbie Lee said there already existed building regulations and guidelines that were adopted by the city council in line with Unesco’s charter on World Heritage Site.

Although there were strict conservation laws, she noted that there is no total ban against owners who wished to renovate their buildings for re-adaptive use.

“What is needed now is for the city council and state to employ more trained conservation architects and officers to carry out implementation and enforcement work,” she said.

The Malacca site comprises 214.6ha and covers two protected areas within the conservation zone of the city and is demarcated by the Melaka River.

The first area is the St Paul's Hill Civic Zone comprising government buildings, museums, churches, the original fortress town from the 16th century Portuguese and Dutch period and Bukit Cina.

The second area is the Historic Residential and Commercial Zone comprising 600 shophouses, commercial and residential buildings, religious buildings and tombs on four main streets.

George Town in Penang has one of the largest concentration of pre-World War Two (1939-45) buildings in Asia.

In GEORGE TOWN, the prices of pre-war houses in the inner city are expected to soar with foreign and local developers looking to capitalise on the recent Unesco listing.

“Pre-war houses are quite cheap now.

“Depending on the location and the state of the building concerned, it could cost between RM800,000 and RM1mil each,” said Datuk Jerry Chan, chairman of the Penang Real Estate Housing and Developers Association (Rehda).

“With potential business opportunities that come with being a Unesco site, local and foreign developers will be snapping up the pre-war buildings, so I think we can expect a 50% to 100% jump in prices.”

He said the association was not against foreign developers coming in but stressed that the Government must regulate business activities in the area.

“In some instances, it actually costs more to restore an old building than to build a new one so perhaps the Government can offer some incentives to those up for the task,” he said.

Penang Municipal Council president Datuk Zainal Rahim Seman said the council would make sure developers and property owners complied with the council’s heritage guidelines when restoring or renovating their premises.

By The Star

Residents in jitters over project

Bad tidings: The notice informing residents of the upcoming development at KL Sentral

The owners of the Suasana Sentral Condominium and Suasana Sentral Loft at Kuala Lumpur Sentral are real unhappy over a plan to build a 30-storey building near their properties.

What irked them most is that the developer, Malaysian Resources Corporation Berhad (MRCB), had apparently given them an impression six years ago that the particular area would remain a green spot.

They said the green area was a major factor influencing them to buy their units at the Suasana Sentral and Suasana Sentral Loft.

“The developer had promised us that the land would remain green and that no development would take place there and now we find out that it is going to build a 30-storey building,” said expatriate Timoko Atsuka, a resident of Suasana Sentral.

“The KL Sentral is a transport hub and is congested and the lack of parking bays makes the situation even worse. This new development is going to cause more congestion,” she said.

Rita Vong said she would be moving into the Loft in August and her unit faced the open area where the new building was to be built.

She is worried about noise and air pollution.

Shankar Narayanan, the owner of a unit in Suasana Sentral, said the developer should be responsible enough to brief the residents on the new project and provide them with the density figures.

“There has to be limits as to the population and high-rise density in the area and we want all this information to be made public,” he said.

According to Shankar, the residents are also seeking a traffic assessment report for the entire area.

The residents said they would meet officials of the Coalition to Save Kuala Lumpur, a group comprising residents associations, to seek their advice.

The residents want to find out if the proposed development is in line with the Kuala Lumpur Structure Plan 2020 and the draft Kuala Lumpur City Plan 2020.

The residents are also complaining that the entire neighbourhood is getting congested, and they blame the KL Sentral management for the chaotic situation.

They alleged that a new entertainment outlet at the KL Sentral operating until 5am on weekends was another source of congestion and disturbance.

They said the outlet patrons simply parked their cars in the middle of the road, blocking all entries from the KL Sentral to the Suasana Sentral condominium.

The residents said that buses were also parked on the roadsides under the no-parking and towing signs and were contributing to the congestion in the neighbourhood.

“This place is getting overcrowded and during peak times it gets really bad. Something must be done about the situation,” resident Sunny Yeoh said.

When contacted, a MRCB spokesman said at the time of the KL Sentral’s inception, the empty plot of land on which the Shell petrol station was previously sited did not belong to the KL Sentral or MRCB, nor was it any part of the original blueprint.

The land was sold to Gapurna Sdn Bhd a few years ago by Shell after it closed its petrol station.

The land had always been designated a commercial zone. Gapurna later applied for the full commercial development of the parcel.

Defying the law: Buses and taxis parked all along the road leading to the KL Sentral and bordering the Suasana Sentral condo despite the towing sign.

The MRCB spokesman said his company became aware of this development last year and then signed a joint venture agreement with Gapurna.

“We entered into this venture to exercise some measure of control over the development that would take place on the lot, including its design and construction decisions. We want to ensure that the proposed development would complement the KL Sentral masterplan and development,” he said.

“As a responsible developer, our team of experienced personnel will do the required research and analysis to ensure the feasibility of the development on this plot of land, as well as to ensure that the overall concept is not compromised,” the MRCB official said.

He said the MRCB would ensure that there was sufficient greenery and that proper landscaping was done to benefit the communities nearby and that the company would also reduce the density to ensure that it was consistent with the existing KL Sentral development.

On the issue of buses illegally parked along Jalan Stesen Sentral 3, and disturbances caused by entertainment outlets operating till the wee hours of the morning, the MRCB official promised that Semasa Sentral Sdn Bhd, the managers of the Sentral station, would monitor the situation.

“Action will be taken against those found not adhering to regulations,” he said.

“The KL Sentral has seen rapid progress since its inception 10 years ago. Individual components within the development complement each other, and MRCB will ensure that this value remains,” the MRCB official said.

By The Star (by Bavani M)

MRCB keen on housing projects in Pakistan

MALAYSIAN Resources Corp Bhd (MRCB) is interested to explore investment possibilities in housing and real estate development in Pakistan.

The construction company also plans to lead a high-level business delegation to Pakistan to meet the stakeholders and explore the possibilities of investment and transfer of technology in the sector.

They are also looking into the possibilities of laying intra-city and inter-city railways network, the High Commission of Pakistan said in a statement yesterday.

The interest was expressed by its group managing director, Shahril Ridza Ridzuan, during a meeting with the Pakistani Prime Minister, Syed Yousaf Raza Gillani, in Kuala Lumpur yesterday.

During the meeting, the prime minister said the Pakistan government is committed to provide decent housing facilities to the entire population, especially the low-income group and government employees residing in big cities.

“The government will provide assistance and incentives to foreign investors who are willing to invest in housing sector and real estate development on larger scale,” he said.

By Bernama

Scheme to help lower-income group cope with housing loans

The Finance Ministry is discussing with banks to reduce the monthly repayments for housing loans to lessen the financial burden of the lower-income group.

Second Finance Minister Tan Sri Nor Mohamed Yakcop said the move would enable borrowers to have more disposable income for their daily expenses.

For example, a person who has managed to repay half the amount of his 20-year loan of RM300,000 within 10 years might be given 20 years instead of 10 to repay the rest of the loan.

The monthly loan repayment would thus be reduced, giving the buyer additional disposable income, he added.

“I have discussed this idea with representatives of the banks, and they have given a positive response to the loan restructuring scheme,” he said.

“The lower repayment will ease the burden of borrowers,” he said during the winding-up speech on behalf of his ministry.

On credit cards, Nor Mohamed said the ministry had asked banks to review the move to abolish the 20-day interest-free period for new retail transactions for credit cardholders.

The move was criticised by the public and MPs who said that the 20-day period allowed consumers to plan their spending.

“A decision on this will be announced later,” Nor Mohamed added.

On the fear of recession, Nor Mohamed said Malaysia had shown strong resilience in countering the effects of inflation, a financial crisis and the recent spike in oil prices.

He said such problems had cropped up in 10-year cycles, adding that the country had suffered the effects of a drastic drop in commodity prices in the 1980s, the financial crisis in 1997 and now the surge in global oil prices.

“We don’t know whether such crisis, which came up every 10 years, should be viewed as a coincidence or whether there were some groups who didn’t want other countries, such as Islamic countries, to become economic successes in their own right.

“But, it’s important to understand that such crisis should not be regarded as the last that we will face and we must be prepared for all eventualities,” he added.

Nor Mohamed said it was also pertinent that the Government practised fiscal discipline.

By The Star

I-Berhad seeks foreign investors for mall project

I-BERHAD (I-Bhd) is in talks with several foreign institutional investors to set up a joint venture to develop the shopping complex component of the i-City project's second phase in Shah Alam, Selangor.

I-Bhd hopes to set up a 70:30 joint venture (JV), with the foreign institution holding the majority, to build an international class shopping complex which has an estimated gross development value (GDV) of RM500 million.

"We will set up a JV and sell the land to the JV partner. We will then develop it together and let our partner manage the shopping complex," I-Bhd deputy chief executive officer Lim Boon Siong said.

"We are looking at shopping centre partners who have the expertise in managing shopping centres for this joint venture," he said.

Lim, in a recent press conference in Sydney, Australia, said that I-Bhd could make an announcement on the development in the third quarter of 2008.

"The mall will have one million square feet gross lettable area which is comparable to the Mid Valley Mega Mall in Kuala Lumpur," he said.

i-City, Lim said, is creating an entire new community which is IT advanced and is a lifestyle hub. As such, a mall which services this community is required.

To be ready in 2011, the mall will cater to about 30,000 office population within the i-City township and 50,000 when the entire project is completed in 2012.

I-Bhd believes that the mall will be successful as there is no such shopping destination between Shah Alam and Klang. The catchment for the mall, based on a 15 km radius, is estimated to be around 1.5 million.

On the corporate towers within i-City, which are now at the planning stage, Lim said the company has received enquiries from institutional investors from Korea, the Middle East and Singapore.

"They are interested in buying either one tower or to manage it as a business park," he said.

By New Straits Times (by Vasantha Ganesan)

I-Berhad eyes RM20m profit this year

I-BERHAD (I-Bhd), the first private initiative to be awarded MSC Cybercentre status, is looking to post RM20 million in profit in the current financial year ending December 31 2008, following the sale of the first phase of the i-City project.

The company - which recently phased out its electrical appliances business and moved into property development - last year posted a mere RM1.95 million in net profit on the back of RM4.07 million revenue.

"We are in talks with various parties, a couple of which are in the advance stage, for the sale of the first phase. We expect to formalise a deal for the sale by the third quarter of 2008," deputy chief executive officer Lim Boon Siong said at a press conference in Sydney, Australia, last week.

"If everything goes according to plan, we will definitely show better results," he said.
According to Lim, I-Bhd hopes to sell Phase 1, which consists of the 44-unit CityPark Cybercentre Office Suites, for about between RM400 and RM500 per sq ft. This would fetch the 300,000 sq ft building a price of between RM120 million and RM150 million.

He added that I-Bhd should get between RM15 million and RM20 million from the sale as profit. Once the building has been sold, I-Bhd wants to lease back the property so that it can control the tenant mix.

I-Bhd is building an intelligent city on 30.38ha of land in Shah Alam. The project, which will be completed in 2012, will have an estimated 7.5 million sq ft in built-up.

Asked if the the gross development value (GDV) of i-City would change given rising raw material costs, Lim said it would be able to make a better gauge in six months time.

"Initially our GDV was projected at RM1.5 billion. Subsequently, as our project got more exciting the GDV was estimated at RM2 billion. With the anticipated increases, our GDV could go up by 20 per cent to 30 per cent," he said.

This means the i-City GDV could be as high as RM2.6 billion for the components which include a shopping complex, office towers, serviced residences and hotels.

The first phase is expected to be fully operational by September.

By The Star (By Vasantha Ganesan)

I-Bhd plans to sell i-City en bloc

SYDNEY: I-Bhd is close to clinching an en bloc sale of the first phase of its 72-acre freehold i-City integrated commercial project in Shah Alam.

Deputy chief executive officer Lim Boon Siong told reporters the company was close to signing a deal comprising 44 units of three- and five-storey shop-offices.

Lim Boon Siong

“We're in an advanced stage of negotiation and will be making an announcement in the next few weeks,” Lim said.

“It would be on a sale-and-leaseback option as the company would prefer to have control of the tenant mix”, he added.

The RM2bil project, scheduled for completion in 2012, will comprise a shopping mall, two corporate towers, shop- offices, serviced apartments, data centres, a five-star hotel and an innovation centre.

It will be equipped with seamless wireless access, integrated information and communications technology and building networks, and multimedia and collaborative tools.

He estimated that the en bloc sale would bring RM15mil to RM20mil in net profit to the company. “We believe we can command at least 20% to 30% premium or RM400 to RM500 per sq ft for the shop-offices,” Lim added.

The company signed an agreement last week with Servcorp Ltd, the world's second largest managed office operator, in which Servcorp and 65%-owned subsidiary i-Office2 Sdn Bhd would provide state-of-the -art concierge services.

I-Bhd has also partnered with US-based Cisco Systems Inc for the Cisco Connected Real Estate that will be used as the vehicle to provide the services.

Lim said the company was also negotiating to sell the project's mall component on an en bloc basis.

“We’ll announce towards the end of the third quarter our joint venture with a foreign shopping operator, that is one of the largest in Asia, which will also be managing the mall.”

Lim said recurring income from property management and fees from i-Office2 would form 20% to 25% of revenue going forward.

By The Star (by Fintan Ng)

KLCC Property Holdings positive on earnings

KUALA LUMPUR: Integrated real estate developer KLCC Property Holdings Bhd is optimistic of its earnings prospect despite challenges in the current economy.

According to group chief executive officer Hashim Wahir, its outlook remains positive, as the demand for office space in prime areas of the city centre remains strong and stable.

Kashim Wahir

A major part (46%) of the company's revenue is derived from property investment and office rental, followed by hotel property (21%), retail centre (27%) and management services (6%), he said after the company AGM yesterday.

“For the hotel operations we need to be innovative, focus more on marketing and sustain occupancy. For example, Suria KLCC is registering 99% occupancy. "

Hashim disclosed that ExxonMobil was renewing its lease agreement with KLCC Property's wholly owned subsidiary Arena Johan for Menara ExxonMobil. The management expects a 3% increase in rental revenue every three years.

“The traffic volume at the Suria KLCC currently stands at 40 million people per year. KLCC Property has yet to see any impact from the decline in domestic demand and consumer spending,” Hashim said.

Asked on KLCC Property's acquisition plans, Hashim said its hands were full with Lot C development in the KLCC precinct, which was under the substructure phase, and Lot D1, which is in the planning stage, but it did not discount the possibility in the future.

Plans for Lot D1are expected to be finalised in one to two years.

By The Star

KLCC Property bullish on growth

KLCC Property Holdings Bhd is optimistic of positive growth in the current financial year ending March 2009 because about 70 per cent of its recurring rental revenue is fixed under three-year leases.

Group chief executive officer Hashim Wahir said KLCC Property has locked in a recurring rental revenue, which is revised upwards once every three years at a rental growth rate of three per cent.

"Despite a challenging business environment in the year ahead, we remain positive because our RM9 billion property assets are located in prime areas in the middle of the Kuala Lumpur city centre.

"Demand for offices in Kuala Lumpur remains strong and revenue from office property is stable. KLCC remains the preferred address for leading multinational corporations," Hashim told reporters in Kuala Lumpur yesterday after its shareholders' meeting.

KLCC Property, one of the world's largest integrated real estate developments, raked in a net profit of RM442 million in financial year ended March 2008 on the back of RM843 million revenue.

Office space contributes to 46 per cent of its total revenue, hotel 21 per cent, retail 27 per cent and management services six per cent.

All of its office space such as at Petronas Twin Towers and Menara Dayabumi is fully occupied, and retail space at Suria KLCC is 99 per cent occupied. Suria KLCC recorded 40 million visitors last year.

By New Straits Times (by Zaidi Isham Ismail)

Mudajaya accepts Tune Hotels job

MUDAJAYA Group Bhd via its unit, Mudajaya Corp Bhd, has accepted a letter of award from Tune Hotels Sdn Bhd for the design, construction and completion of a Low-Cost Hotel Building at the Low-Cost Carrier Terminal in Sepang for RM22.25 million.

In a filing to Bursa Malaysia, Mudajaya said it has commenced construction works. The project is expected to be completed by mid-February 2009.

It said the project is also expected to contribute positively to the earnings and net assets of the company for the financial years ending December 31, 2008 and 2009.

By New Straits Times

Banks agree to restructure housing loan payment

The government has been discussing with banks in Malaysia on restructuring the payment plans for housing loans in order to help reduce the burden of borrowers.

Second Finance Minister Tan Sri Nor Mohamed Yakcop said the banks welcomed the government’s suggestion and that he had been informed by the banks offering housing loans of their move to restructure their housing loans.

The lower repayment on loans will ease the burden of the borrowers, he said at the winding up session of the debate on the mid-term review of the Ninth Malaysia Plan at Dewan Rakyat today.

On Bank Negara Malaysia (BNM)’s decision to allow banks issuing credit cards to stop the interest free period payment on the purchase of retail items, Nor Mohamed said BNM was introducing a tier pricing structure to encourage credit card users to be more careful and smart in their spending.

He said three types of tier pricing structures had been introduced namely a mechanism which allows credit card holders to enjoy a lower finance charge of 15 per cent a year if they are able to make all their credit card payments on time, while the second tier charges 17 per cent if the users pay 10 months out of the 12 months on time and under the third tier 18 per cent will be charged if the credit card holder frequently fails to pay back on time.

“This tier pricing structure will help to reduce the cost of credit card usage compared with the previous system which charged 18 per cent,” he said.

With this system, Nor Mohamed said the previous offer of 20 days repayment period without interest charge enjoyed by all credit card holders automatically without taking into account the monthly credit card payment, will be discontinued.

However, he said he had meetings with all the banks and had asked them to review the matter and that they had agreed to reviewing it.

By Bernama

Materials at 'friendly' prices: Builders to know next week

The government will tell contractors next week where they can get construction materials like cement and steel at reasonable prices.

Works Minister Datuk Mohd Zin Mohamed said a committee, set up in May to find solutions to the escalating cost of building materials, will come up with the recommendations.

"I have asked the committee, which is headed by the ministry's secretary general (Datuk Dr Abdul Munit Kasmin) to prepare a report in a week," he said after officiating MTD's new corporate office building in Batu Caves, Selangor, yesterday.

He was asked when the committee, which also comprised the Construction Industry Development Board, the Public Works Department, the Malaysian Highway Authority and Master Builders Association Malaysia, will submit its recommendations.

"It will not take a long time for them to come out with the recommendations as it is easier to get data on the materials such as the sources and prices.

"If there is a need for a change of policy and (to) produce a Cabinet paper on the matter, I will present those recommendations to the Cabinet," he said.

Mohd Zin said he will also try to meet International Trade and Industry Minister Tan Sri Muhyiddin Mohd Yassin and Domestic Trade and Consumer Affairs Minister Datuk Shahrir Abdul Samad to discuss further action to tackle the problems.

"I also had a dialogue with industry players last week, discussing the various issues plaguing them," he said.

Mohd Zin said it is important to further grow the country's construction industry to sustain economic growth.

"Currently, the construction industry is growing at 5.2 per cent, which accounted for 6.1 per cent of the country's gross domestic product," he said.

Despite the lifting of ceiling prices for cement and steel, Mohd Zin said there seems to be a continued shortage of these materials, which has resulted in higher prices.

By New Straits Times

Five condos at one go

"Kuala Lumpur currently represents one of the best property investment opportunities globally and within KL, Zehn represents one of the best," says Chidgey.

British investor Bill Chidgey visited 40 condominium developments in Kuala Lumpur before deciding on buying five units at Zehn Bukit Pantai.

Bill Chidgey

In an email interview, Chidgey said he came to know of the Zehn condominium project through the real estate company, Knight Frank Malaysia.

“In November 2006, I visited the Zehn show unit as a result of CapitaLand and Knight Frank’s involvement as well as due to the reputation of a high quality product.”

It was the “comprehensive package” that came with the units which included a unique chef’s kitchen and bathroom fittings and accessories that impressed the professional property investor.

The businessman opted for the layout plan that spans 2,496sq ft with units located on the seventh, ninth, 12th, 15th and 20th floors. But he has yet to decide if he would move into any of the units which are basically purchased for investment.

“Zehn looks to be a fantastic product, synonymous with the reputation of CapitaLand as well as Knight Frank.

It was the “comprehensive package” that came with the condo units which included a unique chef’s kitchen and bathroom fittings and accessories that impressed the professional property investor.

“I believe Kuala Lumpur currently represents one of the best property investment opportunities globally and within KL, Zehn represents one of the best, not just because of the above, but also due to its exclusiveness and rarity within the highly desirable Bangsar area. I cannot wait until it is finished!”

By The Star

Solar homes for Malaysia

MBIPV funding support has led to a growing number of PV-equipped buildings which serve as demonstration sites such as a roof link bridge at Monash University in Bandar Sunway, Selangor

IT IS now possible for Malaysians to have solar-powered homes. Three housing developers are offering high-end homes equipped with photovoltaic (PV) systems, in the Klang Valley.

In its latest phase at Setia Eco Park in Shah Alam, Selangor, SP Setia is including PV systems in 20 of the 39 bungalows, which are going for around RM1.58mil. The 5kilowatt peak (KWp) system cost over RM170,000 each and is expected to generate RM150 worth of electricity every month.

In Precinct 16 of Putrajaya, developer Putrajana Perdana is offering PV modules in 15 bungalows ranging in price from RM2.9mil to RM4mil. The PV systems average around 5.4KWp each. Another developer, Amarin Wickham, will incorporate PV cells into the sunshade on the roof of its low-density condominum in the U-Thant area of Kuala Lumpur.

All three developments will benefit from a 30% to 35% subsidy from the Malaysian Building-Integrated Photovoltaic (MBIPV) project, which funds PV systems for private dwellings, commercial buildings and housing development, to promote solar energy.

This scheme is implemented by Pusat Tenaga Malaysia (PTM) and is partially sponsored by the United Nations Development Programme/Global Environment Facility.

MBIPV funding support has led to a growing number of PV-equipped buildings which serve as demonstration sites: the Sri Aman school in Petaling Jaya; shoplots in Damansara Uptown in Petaling Jaya; six bungalow show units at Setia Eco Park in Shah Alam; Putrajaya Perdana office in Putrajaya; a roof link bridge at Monash University in Bandar Sunway, Selangor; and four bungalows at Precinct 16 in Putrajaya.

The MBPIV component that most benefit the public is Suria 1000. Here, people can bid for PV system subsidies of up to 50%. This scheme has so far given 30 house owners the rare opportunity of generating solar power.

The MBIPV project also backed development of the Ministry of Energy, Water and Communications Low Energy (LEO) Building and PTM Zero Energy (ZEO) Building. Both structures have incorporated PV cells and energy-conservation features.

Numerous workshops were also held to build up expertise in BIPV technology, promote a local PV industry, and outline laws and policies that will encourage BIPV development.

By The Star

Aussie concept for Amverton Park

Did you know that a nice Australian-inspired residential development is coming up in Shah Alam?

Called Amverton Park, this 30-acre freehold development by A & M Realty Bhd, is within the established neighbourhoods of Bukit Rimau, Kota Kemuning, Kemuning Utama and Berjaya Park.

As this project is part of the company's 150-acre Bukit Kemuning Golf & Country Resort, residents have a “green lung” in the form of an 18-hole golf course next door.

The developer AMJ Properties Sdn Bhd, a subsidiary of A & M Realty, will build190 bungalows (with individual titles) over five phases. It has built three show bungalows and two more are constructed at the site.

Purchasers can choose from five designs for Phase 1- Alfresco, Grandieur, Maestro, Pavillion and Vista with features like big window panes, 20 feet front lawn, alfresco terrace, double volume ceiling in the living area, sliding glass doors, 8ft-high doors, attached bathrooms and walk-in wardrobes in the bedrooms.

The price? Only RM1.5mil to RM2.8mil for a dream home of 4,100 sq ft to 7,000 sq ft built-up and land size of 5,400 sq ft to 15,000 sq ft. About 80% of the 36 bungalows launched under Phase 1 had been sold, some to its golf club members.

Although the facade has the contemporary modern look, many aspects of the interior layout are reminiscent of Australian homes. There are features like a spacious dry kitchen that opens out to the dining area and which in turn, opens into a large alfresco terrace, reflecting the Aussie love for the outdoors.

“Once the foldable doors to the terrace are opened, you extend your dining area outdoors, and have a barbecue party,” said Steven Ng, A & M Realty Bhd executive director.

Steven Ng

Ng, who is the third son of the company's founder and executive chairman Datuk Ng Thiam Hock, spent nine years studying in Perth (he graduated at the age of 19 in 1999 with a Bachelor of Commerce degree, majoring in finance and marketing from the University of Western Australia).

He is eager to introduce Australian lifestyle into home designs.

Ng said buyers would get a complimentary A & M Lifestyle membership card entitling them to enjoy golf, clubhouse, hotel and dining privileges.

Like Australian homes, there will be no fences or walls to separate the houses in the gated community, but there will be a small gate towards the rear garden for privacy. It also has the Australian “Green Street” concept where utility cables and drains are underground.

Amverton Park will have a gross development value (GDV) of RM330mil.

Senior marketing manager Thang Ah Hong said 20 more bungalows under Phase 2 would be launched in September.

It's Amverton brand is also extended to a high-end two-tower condominium called Amverton Kiara in Kuala Lumpur that might be launched in the third quarter this year. The 2,500 sq ft to 4,000 sq ft unit would be priced around RM750 psf to RM800 psf. One tower will have penthouses at the top while the other will have a sky lounge with swimming pool and entertainment area.

Each floor will have a mix of unit sizes so that one can buy say a 4,000 sq ft unit and a 2,500 sq ft adjoining unit and create a door between them. “Buyers can have one large unit of about 7,000 sq ft, a mansion in the sky,” said Ng, adding that the project with RM500mil GDV, is 160 metres above sea level overlooking Mont' Kiara.

The company with interests in property development, hotels, plantations and investments, plans to develop a 27-hole golf course on its 2,000-acre land on Carey Island.

By The Star

Singapore property boom cooling: Analysts

SINGAPORE: Singapore's booming residential property sector is finally showing signs of cooling but projects including two casino developments should underpin long-term prices, analysts say.

The market was described by real estate giant Jones Lang LaSalle as the world's hottest in 2007, when the city-state's property prices surged 31 per cent overall.

But this year the sector has not escaped wider concerns over a US-led global economic slowdown and inflationary pressures.

Private home prices rose 0.4 per cent in the second quarter, the slowest increase in four years, the government's preliminary figures showed last week.

The second-quarter rise was also much slower than the 3.7 per cent increase recorded in the previous three months but prospective buyers waiting for huge bargains may be disappointed.

Property analysts say prices are likely to fall further in the third quarter but experts rule out massive declines because of the multiplier effect from two multi-billion-dollar gaming resorts now under construction.

Housing demand is expected to pick up when the first of the two casinos opens next year, employing thousands, said Chua Yang Liang, head of Southeast Asia research with Jones Lang LaSalle.

Some of the workforce for the resorts will likely come from foreign countries, creating possible demand for housing, he said.

"To staff these people, you need housing so there will be a potential effect," Chua said.

Foreigners currently make up more than 20 per cent of Singapore's 4.6 million population.

The Marina Bay Financial Centre, a new financial district under construction which will also feature luxury apartments, should also underpin the market in the longer term, analysts said.

Tan Huey Ying, director for research with Colliers International real estate consultants, said prices are not about to spiral downwards even though second quarter figures indicate the residential property market may have peaked.

"Singapore's positive mid-term prospects on the back of the completion of the two integrated resorts and the Marina Bay Financial Centre will help to prop prices up," said Tan.

Values may hold, or decline by no more than three percent, in the third quarter but overall for 2008 home prices could still rise four to eight per cent, said Tan.

Analysts from DTZ real estate consultancy said buyers are still interested in project launches.

By AFP

Foreigners still find good values in M’sia

FOREIGNERS still see good valuations in Malaysian properties and other assets despite the current political uncertainties.

When the ruling coalition Barisan National lost its two-thirds majority in Parliament in March, there was initial fear that foreign investors would reduce their investments in the country.

But this has been proven wrong given the high level of foreign interest and investments since the election results.

In fact, many sectors are benefiting from foreign investments and the number has grown steadily over the years.

According to the Malaysian Industrial Development Authority (Mida), the country's foreign direct investment (FDI) inflows this year is expected to surpass last year's RM33.4bil.

Outgoing Mida director-general Datuk R. Karunakaran was quoted as saying that the first four months of 2008 saw RM23.9bil investments approved, of which RM16.6bil was FDIs.

He said the amount (RM23.9bil) did not include newly announced projects by Ibiden Co Ltd, Q-Cell, SunPower Corp and Honeywell International Inc.

The combined investment by the three foreign companies is expected to hit RM9bil, bringing total FDIs to over RM20bil.

Sectors benefiting from foreign investment

Foreign investments are flowing into a host of sectors from high-end manufacturing, property development, information technology, banking and biotechnology, among others.

Japanese printed circuit-board maker Ibiden said it would invest RM1.2bil in the first phase of its printed wiring board plant at Penang Science Park.

Germany’s Q-Cells AG, the world's largest independent solar cell manufacturer had picked Malaysia to be its first manufacturing plant in Asia for photovoltaic products with an investment of over RM1bil for Phase 1.

US-based company SunPower plans to build an RM2.2bil solar cell fabrication plant in Malaysia in two phases, with the first phase comprising 14 solar cell production lines.

While another US-based company Honeywell International Corp, via its business group Honeywell Aerospace plans to invest RM115.2mil in a 220,000 sq ft avionics manufacturing plant in Penang.

Biotechnology

Malacca Chief Minister Datuk Seri Ali Rustam said the state had secured foreign investments worth RM6.5bil this year, which is about half the amount received over the last seven years.

Ali said Malacca had attracted foreign biotechnology and manufacturing companies.

“From 2000 to 2007, we attracted RM15.6bil of foreign direct investment,” he said, adding that Malacca's yearly foreign investment target was RM3bil.

Vivo Bio Malaysia Sdn Bhd, a subsidiary of India's Vivo Bio Tech Ltd, plans to invest RM450mil by year-end to build a research and manufacturing plant in Malacca for treatment of diseases.

Property development and banking sectors

Meanwhile, the Prime Minister's Department senator Tan Sri Amirsham A. Aziz said current total investment projects recorded in Iskandar Malaysia was about RM33bil, representing 70% of total targeted investment of RM47bil.

He said so far, the total number of investors for Iskandar was 160, Sabah Development Corridor (34) and Sarawak Corridor of Renewable Energy (31) respectively.

The number of investors for the Northern Corridor Economic Region and East Coast Economic Region is yet unclear.

Malaysia also attracted a fair number of foreign investors from the Gulf Cooperation Council (GCC) countries comprising Saudi Arabia, Bahrain, Qatar, Kuwait, Oman and the United Arab Emirates.

Currently, six foreign companies from UAE, Kuwait, Saudi Arabia and Lebanon have invested in Iskandar Malaysia, while some had ventured into Islamic banking and properties.

They are Kuwait Finance House, Aldar Properties PJSC, Mubadala Development Company, Millennium Development Company, Damac and Limitless Dubai.

Kuwait Finance House (M) Bhd, (KFH) a wholly-owned subsidiary of Kuwait Finance House, GCC's second-largest Islamic lender by market value, plans to expand its capital base here by another US$100mil (RM325.48mil) this year.

KFH Malaysia managing director Datuk K. Salman Younis said the bank would still commit to invest in Malaysia despite the tougher operating conditions and political uncertainty.

Other GCC companies such as Middle East lender Al Rajhi Bank Malaysia is waiting for its international Islamic banking licence, while Abu Dhabi Commercial Bank (ADCB) recently acquired a 25% stake in RHB Capital Bhd.

The acquisition was to enable ADCB to use RHB Cap as a springboard into Asean countries such as Thailand, Brunei and Vietnam for its Islamic banking operations, while RHB Cap could capture ADCB's network for sukuk issuance in Abu Dhabi.

It is interesting to note that in a recently released Global Competitiveness Report 2007-2008, Malaysia's competitiveness had moved up to 19th position from 23rd in 2007.

Also, Kearney's 2007 Global Services Location Index (GLSI) indicated that Malaysia was among the top three best destinations in the world for outsourcing activities.

Judging by some of the foreign investments, Malaysia remained a favoured destination to do business but of course, the number can be improved and the sky is the limit.

By The Star (by Danny Yap)

Resorts World picks China firm for Universal project

SINGAPORE: China Jingye Engineering Corporation Ltd (Singapore branch) has been chosen to build the Universal Studios Singapore theme park in Singapore by Resorts World at Sentosa (RWS).

The project is worth S$705 million to China Jingye, a wholly-owned subsidiary of one of China's biggest construction conglomerates, the Metallurgical Corporation of China(MCC) Group.

The Universal Studios Singapore is part of the attractions at the S$6 billion RWS development.

RWS, in a statement said, China Jingye would undertake the general building works of the theme park. This includes structural buildings, facades, walkways and an amphitheatre.

“Universal Studios Singapore's 24 attractions, designed and pre-fabricated by renowned theme-park ride manufacturers worldwide, would also be installed under the coordination of China Jingye,” RWS added.

The Chinese government-linked MCC Group is one of the country’s top five construction-engineering companies.

The MCC has been involved in the structural design, project management and consultation of some of Chinas biggest landmark projects. These include, the Beijing Olympics “bird nest main stadium, the new Beijing Opera House and the China Central Television (CCTV) headquarters.

Last September, the MCC won a S$60 million contract to supply, fabricate and deliver 23,000 tonnes of structural steel for the RWS venture.

RWS, Asia's leading family holiday destination, is on track for a soft opening in early 2010.

RWS, has to date, awarded building contracts totalling S$2.7 billion.

By Bernama

Fewer project launches in Penang

GEORGE TOWN: There will be fewer property projects launched this year in Penang due to the rising cost of fuel and building materials.

“This is reflected in the new launches lined up for exhibition at the upcoming Malaysian Property Exhibition (MAPEX) 2008 scheduled to be held on the island from July 11 to July 13.

There are only three new launches this year for MAPEX 2008, with a gross sales value (GSV) of RM44.5mil, compared to seven last year, which had a GSV of RM300mil,” Real Estate Housing & Developers' Association (Rehda) Penang chairman Datuk Jerry Chan said at a press conference.

The three launches would see 207 housing units launched on the island and mainland.

Chan said the majority of the units launched would be priced below RM250,000 a unit but the new houses were 30% more costlier than those available in the market.

There were currently 6,571 units of houses being constructed on the island and mainland with an estimated GSV of RM1.7bil, added Chan.

Chan said in view of soaring energy and building prices, there would be no new developments of low cost and low medium cost houses, which were currently priced at RM42,000 and RM75,000 respectively.

“We are appealing to the state government to revise these prices. Otherwise developers would resort to building only expensive homes comprising less than 150 units per scheme, which does not require them to build affordable housing,'' he said.

“We are also appealing to the state government to allow developers to have higher density and larger built-up areas for projects in the city.”

Chan said Malaysia was the only country where developers had to undertake the building of low and low-medium cost units.

“Worldwide, this responsibility is shouldered by governments as is the case with healthcare and education,” he added.

By The Star (by David Tan)