IJM Land Bhd, the property development arm of the IJM Group, is targeting between RM200 million and RM250 million in sales with the introduction of its home ownership plan, My Space Plan, managing director Datuk Soam Heng Choon said today.
The plan would attract buyers to choose and acquire their preferred living space from condominiums to landed properties according to their budget, starting from today until June 30, he said.
"If we have the right product in the right location, people will still buy despite the current economic slowdown," he told reporters at the launch of the plan in Kuala Lumpur.
Soam said the tailor-made, home-ownership plan, is applicable to all its properties that are in various stages of development in Penang, the Klang Valley, Seremban, Johor, Sabah and Sarawak.
"The current economic situation should not deter first time buyers or investors from buying properties as they can enjoy our incentives like a low down payment from RM500 and cash rebates of up to a maximum of 10 per cent, he explained.
The plan also offers a low interest rate for the 5:95 payment scheme, cash back guarantee, zero interest during the construction period, six months installment holiday and an easy payment scheme.
He said the company had a land bank size of 3,600 hectares located at strategic locations, including its Canal City development project in Kuala Langat, Selangor.
This will keep IJM Land busy over the next 20 years with a potential gross development value of RM17 billion.
Meanwhile, the company plans to launch several property project worth RM750 million during its current financial year ending March 31, 2010, Soam said.
"Although Malaysia's economy is likely to shrink in the first quarter, we still see people buying property. We have a very young population who need homes," he said.
Soam also disclosed that the company had no plan to halt its RM500 million mixed development project in Changchun, China.
"The project is in progress. We have submitted our proposal for approval," he added.
By Bernama
Wednesday, April 1, 2009
Call to scale down Penang high-rise projects
FOUR property developers involved in high-rise projects in Penang's heritage zone in George Town have been asked to consider scaling down their projects in a bid to safeguard the state's heritage status.
The Penang Heritage Trust (PHT) contends that losing the recognition given by the United Nations Educational, Scientific and Cultural Organisation (Unesco) on the World Heritage List will likely affect all businesses in the city, including the value of the properties the four developers are hoping to build.
The developers comprise Asia Global Business Sdn Bhd, Boustead Holdings Sdn Bhd, E & O Bhd and the Low Yat Group.
The projects in question are AGB's Pier Hub @ Weld Quay and Boustead Royale Bintang Hotel behind the General Post Office in Lebuh Downing, both lying in the heritage core zone.
The other two are E & O Hotel's extension and a 23-storey hotel in Jalan Sultan Ahmad Shah by the Low Yat Group in the buffer zone, both of which are reported to be 84.4m high.
The World Heritage Committee, which administers Unesco's World Heritage programme, stipulates in its guidelines that a maximum height of 18m (or roughly five storeys) has been set for buildings on the island's heritage core and buffer zones.
"We are surprised that the Penang Municipal Council could have allowed such a major slip-up in failing to apply Unesco heritage guidelines on these four building applications," PHT president Dr Choong Sim Poey said in a statement yesterday.
He said regular meetings of the State Heritage Conservation Committee since 2000 were made fully aware of the guidelines during talks on the conservation of the heritage city.
"All relevant state and municipal council officers including the Penang branch of the Real Estate and Housing Developers Association Malaysia (Rehda), along with PHT representatives were part of this committee," Dr Choong said.
He said while the four developers could have been misguided by the planning officers, they should now seriously reconsider their options, after being made aware that George Town stands to lose her heritage status.
"Somewhere along the line, a price will have to be paid for these mistakes, either in losing the Unesco status or compensating the developers," Dr Choong said.
"The government and the people will have to decide which is the greater price to pay," he added.
Meanwhile, Rehda in an advertorial taken out in two English dailies last week noted that there is no absolute prohibition of any structure going above 18m.
"The ongoing furore over the four projects, notwithstanding the fact that they were approved by the council according to the then prevailing guidelines, does not inspire confidence in would-be investors in our state," the association said.
"This is more so when we read that the owners will now be invited and persuaded to reduce the heights of their approved structures," it added.
By Business Times (by Marina Emmanuel)
The Penang Heritage Trust (PHT) contends that losing the recognition given by the United Nations Educational, Scientific and Cultural Organisation (Unesco) on the World Heritage List will likely affect all businesses in the city, including the value of the properties the four developers are hoping to build.
The developers comprise Asia Global Business Sdn Bhd, Boustead Holdings Sdn Bhd, E & O Bhd and the Low Yat Group.
The projects in question are AGB's Pier Hub @ Weld Quay and Boustead Royale Bintang Hotel behind the General Post Office in Lebuh Downing, both lying in the heritage core zone.
The other two are E & O Hotel's extension and a 23-storey hotel in Jalan Sultan Ahmad Shah by the Low Yat Group in the buffer zone, both of which are reported to be 84.4m high.
The World Heritage Committee, which administers Unesco's World Heritage programme, stipulates in its guidelines that a maximum height of 18m (or roughly five storeys) has been set for buildings on the island's heritage core and buffer zones.
"We are surprised that the Penang Municipal Council could have allowed such a major slip-up in failing to apply Unesco heritage guidelines on these four building applications," PHT president Dr Choong Sim Poey said in a statement yesterday.
He said regular meetings of the State Heritage Conservation Committee since 2000 were made fully aware of the guidelines during talks on the conservation of the heritage city.
"All relevant state and municipal council officers including the Penang branch of the Real Estate and Housing Developers Association Malaysia (Rehda), along with PHT representatives were part of this committee," Dr Choong said.
He said while the four developers could have been misguided by the planning officers, they should now seriously reconsider their options, after being made aware that George Town stands to lose her heritage status.
"Somewhere along the line, a price will have to be paid for these mistakes, either in losing the Unesco status or compensating the developers," Dr Choong said.
"The government and the people will have to decide which is the greater price to pay," he added.
Meanwhile, Rehda in an advertorial taken out in two English dailies last week noted that there is no absolute prohibition of any structure going above 18m.
"The ongoing furore over the four projects, notwithstanding the fact that they were approved by the council according to the then prevailing guidelines, does not inspire confidence in would-be investors in our state," the association said.
"This is more so when we read that the owners will now be invited and persuaded to reduce the heights of their approved structures," it added.
By Business Times (by Marina Emmanuel)
Promoting green buildings
GREEN property development is currently in vogue. To help in rating these green buildings, the Malaysian Institute of Architects and the Association of Consulting Engineers Malaysia have jointly developed a rating system – the Green Building Index.
A preview of the Malaysian version of green building rating system was held in conjunction with the Green Design Forum on Jan 3 at the Kuala Lumpur Convention Centre.
Two different sets of Green Building Indices have been developed for commercial and residential properties.
The assessment criteria of the Green Building Index for commercial and residential buildings include energy efficiency, indoor environmental quality, sustainable site and management, materials and resources and water efficiency.
Based on these criteria, commercial buildings will be rated and certified silver, gold and platinum.
This is a new green rating system in addition to the current more than 100 types of environmental rating tools available globally.
Among the well-known rating systems are LEED (the United States and Canada), Energy Star (US), BREEAM (Britain), CASBEE (Japan), Green Star (Australia) and NABERS (Australia).
Most of these tools rate a building through its design and construction phase. Only Energy Star, NABERS and ABGR rate a completed building in operation. The Green Building Index is expected to be applied to new buildings.
The green building property trend is very much driven by developers to differentiate their new developments to add a marketing edge to their new projects.
This is evidenced by GTower and 11 Mont’ Kiara which received a Green Mark Gold certification (provisional) Award and Green Mark Certified Award (provisional) respectively from the Building and Construction Authority of Singapore.
Such certification could potentially differentiate the properties from other competitive developments.
A newly developed green building is perceived to have lower development risk as it readily attracts and retain tenants.
There is willingness by occupiers and owners to occupy such sustainable buildings in the US and Australia. Such buildings are perceived to provide a better workplace which could enhance productivity, reduce energy costs, improve indoor environment quality and reduce carbon dioxide emissions.
With the introduction of the Green Building Index in Malaysia, it is expected that the initial ratings will focus mainly on office buildings and that most of the buildings to be rated will be new ones.
The effect of the rating will create a dichotomy of buildings i.e. green and non-green buildings.
While evidence is starting to emerge to confirm the performance benefits of green buildings in the US, there is relatively little quantitative evidence in Australia and other countries where green buildings are newly introduced.
Green buildings in the US are found to outperform non-green buildings in occupancy rate, capital values and rental rates. Green buildings command a rent premium and have a higher occupancy rate.
However, there are debates in Australia on whether green buildings necessarily command a premium in capital values.
Theoretically, green buildings may have a lower level of obsolescence and operating costs, thereby offering better net operating income and lower capitalisation rate.
However, being new buildings, it is arguable whether an increase in rental or capital value can be attributable to the green building features rather than the properties just being new.
Specifically, would there be any significant differences in the returns from an existing prime office building and a similar green building?
Aren’t new prime office buildings always designed with better specifications, equipped with the latest services and automation systems which are more energy efficient, water efficient and better indoor environmental quality?
When the dichotomy of green and non-green buildings is formed, there will be a profound effect on property investment.
There will be implications to property fund managers, particularly real estate investment trust managers, who may want to re-examine their property holdings in existing property portfolios, criteria for future new property acquisitions and property portfolio strategies.
Non-green buildings are likely to continue to be the bigger stock of commercial spaces. To remain competitive, the challenge is for property owners to refurbish these buildings to turn them into green buildings.
● Associate professor Dr Ting Kien Hwa is director at the Centre for Real Estate Research, Universiti Teknologi Mara. We welcome your feedback on this article. Please e-mail to starbiz@thestar.com.my.
By The Star (by Dr Ting Kien Hwa)
A preview of the Malaysian version of green building rating system was held in conjunction with the Green Design Forum on Jan 3 at the Kuala Lumpur Convention Centre.
Two different sets of Green Building Indices have been developed for commercial and residential properties.
The assessment criteria of the Green Building Index for commercial and residential buildings include energy efficiency, indoor environmental quality, sustainable site and management, materials and resources and water efficiency.
Based on these criteria, commercial buildings will be rated and certified silver, gold and platinum.
This is a new green rating system in addition to the current more than 100 types of environmental rating tools available globally.
Among the well-known rating systems are LEED (the United States and Canada), Energy Star (US), BREEAM (Britain), CASBEE (Japan), Green Star (Australia) and NABERS (Australia).
Most of these tools rate a building through its design and construction phase. Only Energy Star, NABERS and ABGR rate a completed building in operation. The Green Building Index is expected to be applied to new buildings.
The green building property trend is very much driven by developers to differentiate their new developments to add a marketing edge to their new projects.
This is evidenced by GTower and 11 Mont’ Kiara which received a Green Mark Gold certification (provisional) Award and Green Mark Certified Award (provisional) respectively from the Building and Construction Authority of Singapore.
Such certification could potentially differentiate the properties from other competitive developments.
A newly developed green building is perceived to have lower development risk as it readily attracts and retain tenants.
There is willingness by occupiers and owners to occupy such sustainable buildings in the US and Australia. Such buildings are perceived to provide a better workplace which could enhance productivity, reduce energy costs, improve indoor environment quality and reduce carbon dioxide emissions.
With the introduction of the Green Building Index in Malaysia, it is expected that the initial ratings will focus mainly on office buildings and that most of the buildings to be rated will be new ones.
The effect of the rating will create a dichotomy of buildings i.e. green and non-green buildings.
While evidence is starting to emerge to confirm the performance benefits of green buildings in the US, there is relatively little quantitative evidence in Australia and other countries where green buildings are newly introduced.
Green buildings in the US are found to outperform non-green buildings in occupancy rate, capital values and rental rates. Green buildings command a rent premium and have a higher occupancy rate.
However, there are debates in Australia on whether green buildings necessarily command a premium in capital values.
Theoretically, green buildings may have a lower level of obsolescence and operating costs, thereby offering better net operating income and lower capitalisation rate.
However, being new buildings, it is arguable whether an increase in rental or capital value can be attributable to the green building features rather than the properties just being new.
Specifically, would there be any significant differences in the returns from an existing prime office building and a similar green building?
Aren’t new prime office buildings always designed with better specifications, equipped with the latest services and automation systems which are more energy efficient, water efficient and better indoor environmental quality?
When the dichotomy of green and non-green buildings is formed, there will be a profound effect on property investment.
There will be implications to property fund managers, particularly real estate investment trust managers, who may want to re-examine their property holdings in existing property portfolios, criteria for future new property acquisitions and property portfolio strategies.
Non-green buildings are likely to continue to be the bigger stock of commercial spaces. To remain competitive, the challenge is for property owners to refurbish these buildings to turn them into green buildings.
● Associate professor Dr Ting Kien Hwa is director at the Centre for Real Estate Research, Universiti Teknologi Mara. We welcome your feedback on this article. Please e-mail to starbiz@thestar.com.my.
By The Star (by Dr Ting Kien Hwa)
Demand in Shanghai residential market emerges
KUALA LUMPUR: Demand in the Shanghai residential market has gradually re-emerged as developers slashed house prices since the end of last year.
“The overall market saw a decrease in prices but there is an increase in sales volume in March,” said Colliers International's East China division, director of research and advisory Hingyin Lee when presenting Colliers' March 2009 Shanghai Research Bulletin.
In February, sales surged 136.5% year-on-year and 52.2% month-on-month, as the average home price experienced a drop by 13.2% month-on-month to 12,314 renminbi (RM6,569) per sq m.
Although the number of visitors to the Shanghai Spring Real Estate trade fair held from March 10 to 12 hit new highs, the wait-and-see attitude was still overwhelming, said Lee.
The Shanghai municipal government has also issued a notice in March in relation to the progress of the redevelopment of old districts’ where district and county-level governments are encouraged to purchase low-to-mid end commodity residential properties to resettle residents who are affected by re-development.
“We believe the government’s acquisition for the low-to-mid class housing will help drive demand in the market,” said Lee.
As for the land market, it has been quiet overall with several prominent developers seen taking part in land auctions.
Three residential plots first listed for auction sale in 2009 located in the sub-urban districts such as Jiading and Fengxian were sold at the initial bidding price, with the largest piece measuring 149,813 sq m located at Xuhang town, Jiading district acquired by the Shanghai Jiading Real Estate Development Company Ltd (Shanghai Jiading).
Lee said the land plots acquired by the local government-owned enterprises suggested that they believe the market is near to touching the bottom.
The Grade A office market in Shanghai also saw the first major en-bloc transaction in 1Q2009 after a lacklustre period.
Transacted on March 19, the POS Plaza located at Pudong district was acquired by the Lujiazui Group from the South Korea-based POSCO Engineering & Construction Co Ltd for 1.76 billion renminbi.
“This deal implies an initial yield of 8.9% and suggests that domestic investors with strong balance sheet will become the market players,” Lee added.
By The EDGE Malaysia
“The overall market saw a decrease in prices but there is an increase in sales volume in March,” said Colliers International's East China division, director of research and advisory Hingyin Lee when presenting Colliers' March 2009 Shanghai Research Bulletin.
In February, sales surged 136.5% year-on-year and 52.2% month-on-month, as the average home price experienced a drop by 13.2% month-on-month to 12,314 renminbi (RM6,569) per sq m.
Although the number of visitors to the Shanghai Spring Real Estate trade fair held from March 10 to 12 hit new highs, the wait-and-see attitude was still overwhelming, said Lee.
The Shanghai municipal government has also issued a notice in March in relation to the progress of the redevelopment of old districts’ where district and county-level governments are encouraged to purchase low-to-mid end commodity residential properties to resettle residents who are affected by re-development.
“We believe the government’s acquisition for the low-to-mid class housing will help drive demand in the market,” said Lee.
As for the land market, it has been quiet overall with several prominent developers seen taking part in land auctions.
Three residential plots first listed for auction sale in 2009 located in the sub-urban districts such as Jiading and Fengxian were sold at the initial bidding price, with the largest piece measuring 149,813 sq m located at Xuhang town, Jiading district acquired by the Shanghai Jiading Real Estate Development Company Ltd (Shanghai Jiading).
Lee said the land plots acquired by the local government-owned enterprises suggested that they believe the market is near to touching the bottom.
The Grade A office market in Shanghai also saw the first major en-bloc transaction in 1Q2009 after a lacklustre period.
Transacted on March 19, the POS Plaza located at Pudong district was acquired by the Lujiazui Group from the South Korea-based POSCO Engineering & Construction Co Ltd for 1.76 billion renminbi.
“This deal implies an initial yield of 8.9% and suggests that domestic investors with strong balance sheet will become the market players,” Lee added.
By The EDGE Malaysia
WCT aims to secure projects worth RM1b
WCT Berhad, Malaysia’s biggest construction and property development group, aims to secure RM1 billion worth of new projects in Malaysia and the Middle East this year.
WCT regional general manager for the Middle East Elina Abdul Aziz said the group was tendering for projects in Abu Dhabi and Oman.
The group, with RM2.6 billion order book as at Dec 31, 2008, is now positioning itself in three major markets -- Malaysia, Vietnam and Middle East.
“In spite of the slowdown in Middle East markets, there are still opportunities in countries such as Oman and Bahrain.
"In major cities such as Dubai where development has reached its height could be experiencing some slowdown," she told BERNAMA during the Malaysia Services Exhibition 2009 which ended in Dubai recently.
Elina said it was crucial for WCT to position itself and strengthen its foothold in the Middle East market in view of more opportunities when the economy recovered.
She said the Abu Dhabi Formula 1 circuit, one of the iconic projects in Middle East, will be the platform for WCT to expand further in the region.
"The circuit will be completed in August in time for the race date in November," she said.
The project, costing 3.3 billion dirham (US$1=3.704 United Arab Emirates dirham) is reputed to be the world's most modern and finest F1 circuit, with a 50,000 spectator capacity.
WCT has also secured the 235 million dirham Yas Marina Royal Yacht Club located adjacent to the F1 circuit to host the Royal family of Abu Dhabi and VIP visitors for the Abu Dhabi F1 Grand Prix.
"We entered the Middle East construction market in 2002. The Bahrain Formula One circuit project, which we completed at a record time of 16 months, provided us the platform to penetrate into the Middle East market," she said.
WCT's current projects in the Middle East include the 1.6 billion dirham Bahrain City Centre, the country's largest leisure and entertainment hub, 43km 800 million dirham West Dukhan Highway in Qatar and infrastructure work at the New Doha International Airport.
The 2.6 billion dirham airport is touted to be the most modern international airport in the Gulf region.
Elina said while the economic climate and financial situation have become more challenging now due to low demand for construction projects owing to the global economic downturn, WCT is confident of weathering the economic crisis.
She said infrastructure projects are still in demand in the Middle East region though the clients may be more selective.
"The projects we are doing are not affected by the economic downturn and clients are keen to go ahead with the projects.
"In Dubai, for instance, we are finishing with the storm water project and are looking at tenders for infrastructure projects.
"The Middle East market looks promising now while in the next three years Vietnam will be an attractive market," she said.
Elina said to be successful in overseas markets, especially in the Middle East, it is crucial to work with local partners.
In Vietnam, WCT is focusing on the Platinum Plaza project, set to be the country's largest leisure and entertainment centre, she said.
The project will be completed in 2014.
By Business Times
WCT regional general manager for the Middle East Elina Abdul Aziz said the group was tendering for projects in Abu Dhabi and Oman.
The group, with RM2.6 billion order book as at Dec 31, 2008, is now positioning itself in three major markets -- Malaysia, Vietnam and Middle East.
“In spite of the slowdown in Middle East markets, there are still opportunities in countries such as Oman and Bahrain.
"In major cities such as Dubai where development has reached its height could be experiencing some slowdown," she told BERNAMA during the Malaysia Services Exhibition 2009 which ended in Dubai recently.
Elina said it was crucial for WCT to position itself and strengthen its foothold in the Middle East market in view of more opportunities when the economy recovered.
She said the Abu Dhabi Formula 1 circuit, one of the iconic projects in Middle East, will be the platform for WCT to expand further in the region.
"The circuit will be completed in August in time for the race date in November," she said.
The project, costing 3.3 billion dirham (US$1=3.704 United Arab Emirates dirham) is reputed to be the world's most modern and finest F1 circuit, with a 50,000 spectator capacity.
WCT has also secured the 235 million dirham Yas Marina Royal Yacht Club located adjacent to the F1 circuit to host the Royal family of Abu Dhabi and VIP visitors for the Abu Dhabi F1 Grand Prix.
"We entered the Middle East construction market in 2002. The Bahrain Formula One circuit project, which we completed at a record time of 16 months, provided us the platform to penetrate into the Middle East market," she said.
WCT's current projects in the Middle East include the 1.6 billion dirham Bahrain City Centre, the country's largest leisure and entertainment hub, 43km 800 million dirham West Dukhan Highway in Qatar and infrastructure work at the New Doha International Airport.
The 2.6 billion dirham airport is touted to be the most modern international airport in the Gulf region.
Elina said while the economic climate and financial situation have become more challenging now due to low demand for construction projects owing to the global economic downturn, WCT is confident of weathering the economic crisis.
She said infrastructure projects are still in demand in the Middle East region though the clients may be more selective.
"The projects we are doing are not affected by the economic downturn and clients are keen to go ahead with the projects.
"In Dubai, for instance, we are finishing with the storm water project and are looking at tenders for infrastructure projects.
"The Middle East market looks promising now while in the next three years Vietnam will be an attractive market," she said.
Elina said to be successful in overseas markets, especially in the Middle East, it is crucial to work with local partners.
In Vietnam, WCT is focusing on the Platinum Plaza project, set to be the country's largest leisure and entertainment centre, she said.
The project will be completed in 2014.
By Business Times
Axis REIT plans bond sale to refinance debt
AXIS Real Estate Investment Trust, the world's only Islamic office and industrial REIT, plans a bond sale in the first half of this year to help refinance debt as it prepares for potential acquisitions this year.
"There's nothing worse than having the sale of the century if you haven't got any money to buy anything," Stewart LaBrooy, chief executive officer of Axis REIT Managers Bhd, manager of the property trust, said in an interview in Kuala Lumpur on Monday.
"The-re's a lot of opportunities and fat pickings," he added.
Axis REIT, which is eyeing RM100 million of property assets, may sell Islamic bonds under a seven-year programme to refinance about RM220 million of debt, he said. It may also sell new stock to private investors.
Axis REIT owns RM726.4 million of assets in Malaysia, from offices and warehouses to logistic centres. It is taking advantage of a global recession to snap up properties at cheaper prices and ride on an eventual rebound when economies recover.
The company was reclassified as an Islamic REIT from a conventional property trust in December, allowing it to attract a wider pool of funds, LaBrooy said.
Axis REIT may raise about RM70 million selling new units to private investors to help fund any acquisitions, LaBrooy said. It raised RM90 million last year from a placement of 50 million units and will consider the fund-raising plan once it refinances its existing debt, he said.
Still, it won't be easy to acquire high-yielding properties amid the economic decline, said Terence Wong, an analyst at CIMB Investment Bank Bhd.
By Bloomberg
"There's nothing worse than having the sale of the century if you haven't got any money to buy anything," Stewart LaBrooy, chief executive officer of Axis REIT Managers Bhd, manager of the property trust, said in an interview in Kuala Lumpur on Monday.
"The-re's a lot of opportunities and fat pickings," he added.
Axis REIT, which is eyeing RM100 million of property assets, may sell Islamic bonds under a seven-year programme to refinance about RM220 million of debt, he said. It may also sell new stock to private investors.
Axis REIT owns RM726.4 million of assets in Malaysia, from offices and warehouses to logistic centres. It is taking advantage of a global recession to snap up properties at cheaper prices and ride on an eventual rebound when economies recover.
The company was reclassified as an Islamic REIT from a conventional property trust in December, allowing it to attract a wider pool of funds, LaBrooy said.
Axis REIT may raise about RM70 million selling new units to private investors to help fund any acquisitions, LaBrooy said. It raised RM90 million last year from a placement of 50 million units and will consider the fund-raising plan once it refinances its existing debt, he said.
Still, it won't be easy to acquire high-yielding properties amid the economic decline, said Terence Wong, an analyst at CIMB Investment Bank Bhd.
By Bloomberg
Tuesday, March 31, 2009
Suria KLCC eyes 5pc growth in retail sales
AMIDST the gloomy outlook of a weakening economy and dampened consumer sentiments, one of Kuala Lumpur's shopping bright spots, Suria KLCC, expects total retail sales to grow for the 11th consecutive year.
The premier shopping centre, housing 330 specialty stores within the 1.04 million sq ft of retail space, hopes to grow total retail sales by up to 5 per cent to about RM2.1 billion this year.
The growth, though small compared to the 15 per cent in 2007, is still better than its marginal growth in 2008.
Retail sales were stable at Suria KLCC last year amidst lower traffic count as a result of an additional 2.9 million sq ft of retail space in the market (at the Pavilion Kuala Lumpur, The Gardens Mid Valley and Sunway Pyramid) and high fuel price.
The premier shopping centre, housing 330 specialty stores within the 1.04 million sq ft of retail space, hopes to grow total retail sales by up to 5 per cent to about RM2.1 billion this year.
The growth, though small compared to the 15 per cent in 2007, is still better than its marginal growth in 2008.
Retail sales were stable at Suria KLCC last year amidst lower traffic count as a result of an additional 2.9 million sq ft of retail space in the market (at the Pavilion Kuala Lumpur, The Gardens Mid Valley and Sunway Pyramid) and high fuel price.
Suria KLCC Sdn Bhd's chief executive officer Andrew Brien said this year's strategy is to get customers to stay longer and spend more.
"In 2008, we grew by a few percentage points to just over RM2 billion in sales, despite a 4.5 per cent drop in traffic (to 42.02 million) from 44 million in 2007. We have been able to maintain modest growth in what has been a challenging environment. This is a testament of our strength," he told Business Times.
In a previous interview, Brien had noted that the high growth experienced for two-and-a-half years (between mid 2004 and 2007) would be nearly impossible to sustain forever.
Suria KLCC is a 60:40 partnership between KLCC Property Holdings Bhd and ING Real Estate.
For the financial year ended March 31 2008, Suria KLCC registered RM232.3 million in revenue, representing a 8.2 per cent growth from RM214.7 million achieved in the previous year.
The 57 per cent urbanised Malaysian population and a higher level of job security, particularly for those in the Klang Valley as well as the high spending tourist crowd, also works in the mall's favour.
"If there has been a drop in tourists numbers we have not seen it. They still account for 20 per cent of our business as they are big spenders," he said.
He added that even rentals was not an issue at the mall. "If a mall is successful, rent is never an issue," he said, adding that Suria KLCC does not plan to cut its advertisement and promotion spending for 2009.
"We have a good team, a good product, and we want to make sure it remains great," he said.
Apart from investments to spruce up the mall, Suria KLCC has also remixed the retailers to drive sales. Some of the recent additions include Harrods, Ed Hardy, Mulberry, 7 For All Mankind and ck Calvin Klein Accessories.
By Business Times (by Vasantha Ganesan)
"In 2008, we grew by a few percentage points to just over RM2 billion in sales, despite a 4.5 per cent drop in traffic (to 42.02 million) from 44 million in 2007. We have been able to maintain modest growth in what has been a challenging environment. This is a testament of our strength," he told Business Times.
In a previous interview, Brien had noted that the high growth experienced for two-and-a-half years (between mid 2004 and 2007) would be nearly impossible to sustain forever.
Suria KLCC is a 60:40 partnership between KLCC Property Holdings Bhd and ING Real Estate.
For the financial year ended March 31 2008, Suria KLCC registered RM232.3 million in revenue, representing a 8.2 per cent growth from RM214.7 million achieved in the previous year.
The 57 per cent urbanised Malaysian population and a higher level of job security, particularly for those in the Klang Valley as well as the high spending tourist crowd, also works in the mall's favour.
"If there has been a drop in tourists numbers we have not seen it. They still account for 20 per cent of our business as they are big spenders," he said.
He added that even rentals was not an issue at the mall. "If a mall is successful, rent is never an issue," he said, adding that Suria KLCC does not plan to cut its advertisement and promotion spending for 2009.
"We have a good team, a good product, and we want to make sure it remains great," he said.
Apart from investments to spruce up the mall, Suria KLCC has also remixed the retailers to drive sales. Some of the recent additions include Harrods, Ed Hardy, Mulberry, 7 For All Mankind and ck Calvin Klein Accessories.
By Business Times (by Vasantha Ganesan)
TSR to build, equip RM1.7bil hospital
PETALING JAYA: Construction group TSR Capital Bhd looks set to build and equip a teaching hospital costing RM1.7bil for International Islamic University Malaysia (IIUM) in Nilai, Negri Sembilan.
Prime Minister Datuk Seri Abdullah Ahmad Badawi will today officiate the ground-breaking ceremony for the hospital which will be funded by private finance initiative (PFI).
Prime Minister Datuk Seri Abdullah Ahmad Badawi will today officiate the ground-breaking ceremony for the hospital which will be funded by private finance initiative (PFI).
Under a PFI scheme, a private sector company will finance the development of infrastructure and lease it to the Government over a period of many years.
TSR recently announced to Bursa Malaysia that it has received approval in-principle from the Economic Planning Unit for its subsidiary Medicalcity Corp Sdn Bhd to develop a post-graduate teaching hospital for IIUM.
The project remains subject to terms and conditions to be negotiated and a concession agreement to be executed.
TSR senior accountant K. K. Ng said Medicalcity was a joint-venture company that was 70:30 owned by TSR and Lembaga Tabung Haji (LTH) group.
Medicalcity would design, manage the turnkey construction and finance the development of the hospital while TSR would construct and equip the facility, Ng told StarBiz yesterday. After TSR has completed construction, Medicalcity will provide maintenance services for the hospital and its facilities over the next 30 years.
“The doctors can focus on medical treatment and teaching while the building and facility maintenance services are outsourced to us,” Ng said.
The PFI arrangement will be under a build-lease-maintain and transfer (BLMT) scheme where the facilities will be transferred to the Government at the end of the lease period.
There will be key performance indicators to be adhered to by Medicalcity in its maintenance contract for the facilities.
The total development cost of RM1.7bil comprises about RM1bil for construction of the hospital and about RM700mil for the medical equipment.
While that is a huge sum to finance at this time, it is doable because bankers would be comfortable with the Government as the customer. Even so, Medicalcity will work on a debt-to-equity ratio of 80:20 as against a higher leverage of 90:10 that was originally planned.
“That’s to enable us to work towards a triple A rating for the bank loans. Bankers will be more comfortable if we put 20% of equity into the financing structure,” Ng said.
The teaching hospital will be built on a large piece of land in Nilai that’s owned by the Higher Education Ministry, and within Bandar Enstek that is being developed by a joint venture of Negri Sembilan State Development Corp and TH Properties Sdn Bhd, a subsidiary of LTH.
It is also near a 370-acre site owned by TH Properties and planned for a medical city. It is expected that TH Properties will form a joint venture with TSR to develop that.
The medical city will comprise facilities to offer services such as a combination of western and eastern or herbal medicine and treatment.
The whole concept focuses on the dual objectives of training knowledge workers and making available herbal treatment in a managed facility.
By The Star (by C.S.Tan)
TSR recently announced to Bursa Malaysia that it has received approval in-principle from the Economic Planning Unit for its subsidiary Medicalcity Corp Sdn Bhd to develop a post-graduate teaching hospital for IIUM.
The project remains subject to terms and conditions to be negotiated and a concession agreement to be executed.
TSR senior accountant K. K. Ng said Medicalcity was a joint-venture company that was 70:30 owned by TSR and Lembaga Tabung Haji (LTH) group.
Medicalcity would design, manage the turnkey construction and finance the development of the hospital while TSR would construct and equip the facility, Ng told StarBiz yesterday. After TSR has completed construction, Medicalcity will provide maintenance services for the hospital and its facilities over the next 30 years.
“The doctors can focus on medical treatment and teaching while the building and facility maintenance services are outsourced to us,” Ng said.
The PFI arrangement will be under a build-lease-maintain and transfer (BLMT) scheme where the facilities will be transferred to the Government at the end of the lease period.
There will be key performance indicators to be adhered to by Medicalcity in its maintenance contract for the facilities.
The total development cost of RM1.7bil comprises about RM1bil for construction of the hospital and about RM700mil for the medical equipment.
While that is a huge sum to finance at this time, it is doable because bankers would be comfortable with the Government as the customer. Even so, Medicalcity will work on a debt-to-equity ratio of 80:20 as against a higher leverage of 90:10 that was originally planned.
“That’s to enable us to work towards a triple A rating for the bank loans. Bankers will be more comfortable if we put 20% of equity into the financing structure,” Ng said.
The teaching hospital will be built on a large piece of land in Nilai that’s owned by the Higher Education Ministry, and within Bandar Enstek that is being developed by a joint venture of Negri Sembilan State Development Corp and TH Properties Sdn Bhd, a subsidiary of LTH.
It is also near a 370-acre site owned by TH Properties and planned for a medical city. It is expected that TH Properties will form a joint venture with TSR to develop that.
The medical city will comprise facilities to offer services such as a combination of western and eastern or herbal medicine and treatment.
The whole concept focuses on the dual objectives of training knowledge workers and making available herbal treatment in a managed facility.
By The Star (by C.S.Tan)
IOI Corp offer for IOI Prop to close today
KUALA LUMPUR: IOI Properties will be suspended with effect from April 7 and be removed in due course from its listing on Bursa Malaysia.
AmResearch said in a research note said the final closing date of the voluntary takeover offer was on March 31.
On March 30, IOI Corp announced the level of acceptances for its voluntary takeover of IOI Properties had reached 90.65% of the latter’s issued and paid-up share capital on March 30.
IOI Corp had previously said that as long as it received acceptances resulting in the minimum level of 90% shareholding in IOI Properties, it would suspend and delist IOI Properties.
Shareholders of IOI Properties, who have not accepted IOI Corp’s voluntary takeover offer of the company, will face the risk of holding shares in an unlisted company. The only form of return that they would get would be dividends.
“To recap, we view the privatisation of IOI Properties positively as IOI Properties is being acquired close to the bottom of the property cycle.
“Offer price of RM2.598 per share values IOI Properties at an annualised FY09F price-to-earnings (PE) of 8.9 times and price to book value (P/BV) of 0.7 times versus the sector’s average P/BV of 1.1 times,” said the research house.
AmResearch said the acquisition of IOI Properties would increase IOI’s FY10F net profit by 4% to 5% as the elimination of minority interest would more than compensate for the increase in IOI’s share base and loss of interest income.
After the privatisation exercise of IOI Properties, IOI Corp would still have plenty of cash left in its reserves.
The group’s gross cash and cash equivalents amounted to RM1.9 billion as at end-December 2008. Cash outflow from privatising IOI Properties was about RM66 million.
“We believe that IOI Corp would most probably still be looking for acquisitions or expansions in the downstream segment of oleochemicals or specialty fats.
“We maintain a Buy on IOI Corp as it will benefit from improving crude palm oil prices. IOI Corp is one of the more efficient plantation companies in the country,” it said.
By The EDGE Malaysia (by Joe Chin)
AmResearch said in a research note said the final closing date of the voluntary takeover offer was on March 31.
On March 30, IOI Corp announced the level of acceptances for its voluntary takeover of IOI Properties had reached 90.65% of the latter’s issued and paid-up share capital on March 30.
IOI Corp had previously said that as long as it received acceptances resulting in the minimum level of 90% shareholding in IOI Properties, it would suspend and delist IOI Properties.
Shareholders of IOI Properties, who have not accepted IOI Corp’s voluntary takeover offer of the company, will face the risk of holding shares in an unlisted company. The only form of return that they would get would be dividends.
“To recap, we view the privatisation of IOI Properties positively as IOI Properties is being acquired close to the bottom of the property cycle.
“Offer price of RM2.598 per share values IOI Properties at an annualised FY09F price-to-earnings (PE) of 8.9 times and price to book value (P/BV) of 0.7 times versus the sector’s average P/BV of 1.1 times,” said the research house.
AmResearch said the acquisition of IOI Properties would increase IOI’s FY10F net profit by 4% to 5% as the elimination of minority interest would more than compensate for the increase in IOI’s share base and loss of interest income.
After the privatisation exercise of IOI Properties, IOI Corp would still have plenty of cash left in its reserves.
The group’s gross cash and cash equivalents amounted to RM1.9 billion as at end-December 2008. Cash outflow from privatising IOI Properties was about RM66 million.
“We believe that IOI Corp would most probably still be looking for acquisitions or expansions in the downstream segment of oleochemicals or specialty fats.
“We maintain a Buy on IOI Corp as it will benefit from improving crude palm oil prices. IOI Corp is one of the more efficient plantation companies in the country,” it said.
By The EDGE Malaysia (by Joe Chin)
Axis REIT plans bond sale in first half
AXIS Real Estate Investment Trust, the world’s only Islamic office and industrial REIT, plans a bond sale in the first half of 2009 to help refinance debt as it prepares for potential acquisitions this year.
“There’s nothing worse than having the sale of the century if you haven’t got any money to buy anything,” Stewart LaBrooy, chief executive officer of Axis REIT Managers Bhd, manager of the property trust, said in an interview yesterday. “There’s a lot of opportunities and fat pickings.”
Axis REIT, which is eyeing RM100 million (US$27 million) of property assets, may sell Islamic bonds under a seven-year program to refinance about RM220 million of debt, he said. It may also sell new stock to private investors.
Axis owns RM726.4 million of assets in Malaysia, from offices and warehouses to logistic centers. It is taking advantage of a global recession to snap up properties at cheaper prices and ride on an eventual rebound when economies recover.
Axis may raise about RM70 million selling new units to private investors to help fund any acquisitions, LaBrooy said. It raised RM90 million last year from a placement of 50 million units and will consider the fund-raising plan once it refinances its existing debt, he said.
Axis REIT’s stock has gained 18 per cent this year, making it the second-best performing property trust in Malaysia, outpacing the benchmark Composite Index’s 0.7 per cent decline.
By Bloomberg
“There’s nothing worse than having the sale of the century if you haven’t got any money to buy anything,” Stewart LaBrooy, chief executive officer of Axis REIT Managers Bhd, manager of the property trust, said in an interview yesterday. “There’s a lot of opportunities and fat pickings.”
Axis REIT, which is eyeing RM100 million (US$27 million) of property assets, may sell Islamic bonds under a seven-year program to refinance about RM220 million of debt, he said. It may also sell new stock to private investors.
Axis owns RM726.4 million of assets in Malaysia, from offices and warehouses to logistic centers. It is taking advantage of a global recession to snap up properties at cheaper prices and ride on an eventual rebound when economies recover.
Axis may raise about RM70 million selling new units to private investors to help fund any acquisitions, LaBrooy said. It raised RM90 million last year from a placement of 50 million units and will consider the fund-raising plan once it refinances its existing debt, he said.
Axis REIT’s stock has gained 18 per cent this year, making it the second-best performing property trust in Malaysia, outpacing the benchmark Composite Index’s 0.7 per cent decline.
By Bloomberg
Monday, March 30, 2009
Cyberview draws up 5-year plan for Cyberjaya
CYBERVIEW Sdn Bhd is drawing up new plans for Cyberjaya - including products and development - that will cover a five-year period from 2011 to 2015, a top official said.
"We will have a round of discussion with the Economic Planning Unit to identify what are the niche areas that need to be prompted and expanded. One area where I see a lot of potential is creative multimedia," said Redza Rafiq, managing director of the government-linked entity spearheading developments at Cyberjaya.
He believes there will be an influx of investments to Cyberjaya as companies worldwide, especially Ame-rican information and communications technology (ICT) firms, relocate to keep costs low.
Cyberview has embarked on a campaign to promote Cyberjaya in North America, and several firms have indicated their intention to move to the ICT hub, Redza told Business Times in an interview recently.
"We are expanding. It is not a real estate game. We are using property as a tool to create economic opportunities in targeted sectors. We believe there are opportunities in every crisis," he said.
Redza said Cyberview is moving to develop more land and provide more buildings as demand has outstripped supply.
There are currently 500 companies operating in Cyberjaya, 465 of which are homegrown and the rest, multinationals. This is 65 per cent more than three years ago.
Redza said 26 companies have confirmed moving to Cyberjaya since July last year, including Malladi, a biotech firm from India; Rhythm & Hues Studios, which specialises in visual effects and computer animation for feature films; Experian plc, a global information services company; institutional investor services provider RBC Dexia; and a prominent US-based micro processor.
Cyberview is currently busy building eight properties for, among others, Dell, Satyam, Hewlett-Packard, KRU Studios, and the Knowledge Workers Development Institute.
These properties are worth a combined RM585 million, and will add 1.65 million sq ft of new office space in Cyberjaya by end-2010, breaching the anticipated five million sq ft mark.
Redza said it will also create 7,000 new jobs by then, increasing the current workforce of 19,000.
Cyberview, meanwhile, has postponed the launch of its flagship housing project, myHome@Cyberjaya, worth over RM100 million, to the fourth quarter.
It was aiming to launch the project, comprising 1,000 units of serviced apartments and double-storey houses worth from RM88,000 to RM168,000 respectively, in August last year.
The delay is due to unexpected demand from knowledge workers in Cyberjaya, Redza said.
Today, some 25 per cent of Cyberjaya's total land size is developed with proper infrastructure, public amenities, houses, commercial blocks, SME buildings and learning institutions.
"It would be unrealistic to assume that we would be unaffected by job cuts by companies operating from Cyberjaya. But it is realistic to believe the effect on Cyberjaya will be more muted compared to other areas," he told Business Times.
By Business Times (by Sharen Kaur)
He believes there will be an influx of investments to Cyberjaya as companies worldwide, especially Ame-rican information and communications technology (ICT) firms, relocate to keep costs low.
Cyberview has embarked on a campaign to promote Cyberjaya in North America, and several firms have indicated their intention to move to the ICT hub, Redza told Business Times in an interview recently.
"We are expanding. It is not a real estate game. We are using property as a tool to create economic opportunities in targeted sectors. We believe there are opportunities in every crisis," he said.
Redza said Cyberview is moving to develop more land and provide more buildings as demand has outstripped supply.
There are currently 500 companies operating in Cyberjaya, 465 of which are homegrown and the rest, multinationals. This is 65 per cent more than three years ago.
Redza said 26 companies have confirmed moving to Cyberjaya since July last year, including Malladi, a biotech firm from India; Rhythm & Hues Studios, which specialises in visual effects and computer animation for feature films; Experian plc, a global information services company; institutional investor services provider RBC Dexia; and a prominent US-based micro processor.
Cyberview is currently busy building eight properties for, among others, Dell, Satyam, Hewlett-Packard, KRU Studios, and the Knowledge Workers Development Institute.
These properties are worth a combined RM585 million, and will add 1.65 million sq ft of new office space in Cyberjaya by end-2010, breaching the anticipated five million sq ft mark.
Redza said it will also create 7,000 new jobs by then, increasing the current workforce of 19,000.
Cyberview, meanwhile, has postponed the launch of its flagship housing project, myHome@Cyberjaya, worth over RM100 million, to the fourth quarter.
It was aiming to launch the project, comprising 1,000 units of serviced apartments and double-storey houses worth from RM88,000 to RM168,000 respectively, in August last year.
The delay is due to unexpected demand from knowledge workers in Cyberjaya, Redza said.
Today, some 25 per cent of Cyberjaya's total land size is developed with proper infrastructure, public amenities, houses, commercial blocks, SME buildings and learning institutions.
"It would be unrealistic to assume that we would be unaffected by job cuts by companies operating from Cyberjaya. But it is realistic to believe the effect on Cyberjaya will be more muted compared to other areas," he told Business Times.
By Business Times (by Sharen Kaur)
UK's Sure Corporate eyeing property bargains in KL
FOREIGNERS are fishing for investment opportunities in Malaysia's property sector, riding on the gloomy economy that has made properties cheaper by 15 to 30 per cent, especially in Kuala Lumpur.
Property investment firm Sure Corporate Holdings Sdn Bhd, a unit of UK-based Sure Holdings Ltd (SHL), is looking for properties, but is also tightening its belt now as developers are reluctant to offer discounts on properties still under construction.
Property investment firm Sure Corporate Holdings Sdn Bhd, a unit of UK-based Sure Holdings Ltd (SHL), is looking for properties, but is also tightening its belt now as developers are reluctant to offer discounts on properties still under construction.
"We are not investing over the next quarter. Like most investors, we will watch for sellers to lower their price. We will only buy what we consider to be an absolute bargain that has a real potential for good rental yield," says SHL founder James Pala.
"In my view, condominiums in Mont' Kiara are over priced by 15 per cent. It's greed on the developer's side," Pala told Business Times in Kuala Lumpur.
He said there is also a big gap of property pricing range in KLCC. While a 500 sq ft studio apartment costs around RM600,000, a 5,000 sq ft condominium is priced at RM10 million to RM15 million.
"There is no price correlation. Prices need to be adjusted if developers want to sell," Pala said.
Pala is not new to the Malaysian real estate scene. He has been buying and selling luxury condominiums and expensive landed homes since 1999.
The 34-year-old British born is buying properties to lease to expatriates and foreigners under the Malaysia My Second Home (MM2H) programme.
In its portfolio, it has 50 properties in Mont' Kiara, KLCC, Hartamas and Dutamas, bought in bulk from PJ Development Holdings Bhd, Sunrise Bhd, Mayland Properties and Palam Mesra Sdn Bhd.
Pala says the properties, which are 70 per cent occupied, are leased for RM2,500 to RM10,000 a month, 20 per cent cheaper than a year ago, as depression heightens.
"Our philosophy is to buy high-rise properties in bulk, hold for five years, then sell. For landed properties, we will hold for 5 to 10 years. If the market is good, you can double your money when you sell," he said.
Pala said for new purchases, SHL will stick to areas like Mont' Kiara, Bangsar, Golden Triangle, Sri Hartamas and Dutamas to invest.
It may look at potential growth areas being developed like Segambut.
"Malaysia has a lot of scope for growth. The properties are by far cheaper in comparison to Singapore and Hong Kong, hence making it a viable place to invest," Pala said.
SHL also trades in Fine Vintage French Wines, to complement its property investment business.
"We buy and sell for our private clients and build portfolios for them. They are the same investors who buy our properties," he added.
By Business Times (by Sharen Kaur)
"In my view, condominiums in Mont' Kiara are over priced by 15 per cent. It's greed on the developer's side," Pala told Business Times in Kuala Lumpur.
He said there is also a big gap of property pricing range in KLCC. While a 500 sq ft studio apartment costs around RM600,000, a 5,000 sq ft condominium is priced at RM10 million to RM15 million.
"There is no price correlation. Prices need to be adjusted if developers want to sell," Pala said.
Pala is not new to the Malaysian real estate scene. He has been buying and selling luxury condominiums and expensive landed homes since 1999.
The 34-year-old British born is buying properties to lease to expatriates and foreigners under the Malaysia My Second Home (MM2H) programme.
In its portfolio, it has 50 properties in Mont' Kiara, KLCC, Hartamas and Dutamas, bought in bulk from PJ Development Holdings Bhd, Sunrise Bhd, Mayland Properties and Palam Mesra Sdn Bhd.
Pala says the properties, which are 70 per cent occupied, are leased for RM2,500 to RM10,000 a month, 20 per cent cheaper than a year ago, as depression heightens.
"Our philosophy is to buy high-rise properties in bulk, hold for five years, then sell. For landed properties, we will hold for 5 to 10 years. If the market is good, you can double your money when you sell," he said.
Pala said for new purchases, SHL will stick to areas like Mont' Kiara, Bangsar, Golden Triangle, Sri Hartamas and Dutamas to invest.
It may look at potential growth areas being developed like Segambut.
"Malaysia has a lot of scope for growth. The properties are by far cheaper in comparison to Singapore and Hong Kong, hence making it a viable place to invest," Pala said.
SHL also trades in Fine Vintage French Wines, to complement its property investment business.
"We buy and sell for our private clients and build portfolios for them. They are the same investors who buy our properties," he added.
By Business Times (by Sharen Kaur)
Pan Arab Dev-Hong Bee project talks
PAN Arab Development Co Sdn Bhd, controlled by a Pakistan businessman, aims to develop a commercial project in the Klang Valley, in partnership with the Hong Bee Group.
Its founder Aftab Adamjee said its investment in the development will be over RM200 million, but declined to elaborate as plans are still preliminary.
The project is a first in a series of investments Aftab will make in Malaysia.
Founded in 1933, Hong Bee is run by the low-profile Gan family, with interests in textile.
Aftab is in talks with Hong Bee to also build houses for the Muslim community from the Middle East, Pakistan and the West.
"I am talking to Glomac Bhd and Ireka Corp Bhd for similar purpose. But the bigger plan is to get investors from Pakistan and the Middle East to invest here," he told Business Times in an interview.
Aftab is also buying houses in bulk from developers in choice locations, and selling to the Muslim community worldwide.
"I see large groups of Muslims from the Middle East and Pakistan coming here over the next five years under the Malaysia 'My Second Home programme'. They feel insecure because of what is happening in their home country," he said.
Aftab, via a private firm, has sold RM50 million worth of properties for Ireka, to high-net worth people in Pakistan, and is in talks with Glomac to sell its properties in the same country.
"Developers are giving good rebates if you buy in bulk. If you have the heart to weigh it out during this turmoil, it is a good time to do it. You will be getting better deals now than six months ago. Obviously, this is the time to also negotiate," he said.
Aftab does not foresee the downtrend cycle to be long term as he expects a turnaround in three to five years' time.
But the biggest challenge is getting funds as banks have increased margin requirements, he said.
"For Malaysian acquisition, we try to get funding from local banks. I have been successful so far in getting more than RM50 million in credit from UOB, Affin and CIMB," he said.
Aftab said he is looking at downstream projects to do with oil- and gas-related firms, and derivatives of palm oil like pharmaceutical grade by-products.
By Business Times (by Sharen Kaur)
Its founder Aftab Adamjee said its investment in the development will be over RM200 million, but declined to elaborate as plans are still preliminary.
The project is a first in a series of investments Aftab will make in Malaysia.
Founded in 1933, Hong Bee is run by the low-profile Gan family, with interests in textile.
Aftab is in talks with Hong Bee to also build houses for the Muslim community from the Middle East, Pakistan and the West.
"I am talking to Glomac Bhd and Ireka Corp Bhd for similar purpose. But the bigger plan is to get investors from Pakistan and the Middle East to invest here," he told Business Times in an interview.
Aftab is also buying houses in bulk from developers in choice locations, and selling to the Muslim community worldwide.
"I see large groups of Muslims from the Middle East and Pakistan coming here over the next five years under the Malaysia 'My Second Home programme'. They feel insecure because of what is happening in their home country," he said.
Aftab, via a private firm, has sold RM50 million worth of properties for Ireka, to high-net worth people in Pakistan, and is in talks with Glomac to sell its properties in the same country.
"Developers are giving good rebates if you buy in bulk. If you have the heart to weigh it out during this turmoil, it is a good time to do it. You will be getting better deals now than six months ago. Obviously, this is the time to also negotiate," he said.
Aftab does not foresee the downtrend cycle to be long term as he expects a turnaround in three to five years' time.
But the biggest challenge is getting funds as banks have increased margin requirements, he said.
"For Malaysian acquisition, we try to get funding from local banks. I have been successful so far in getting more than RM50 million in credit from UOB, Affin and CIMB," he said.
Aftab said he is looking at downstream projects to do with oil- and gas-related firms, and derivatives of palm oil like pharmaceutical grade by-products.
By Business Times (by Sharen Kaur)
Kampong Baru project may cost RM500m
The Puncak Baru project, a mixed deveopment venture on the site of the Sunday market in Kampong Baru, Kuala Lumpur, is estimated to cost RM500 million.
Federal Territories Minister Datuk Seri Zulhasnan Rafique said the project on the land owned by City Hall (DBKL), provides a balance, by taking into account the needs of local residents and that of the property market.
He said that the project comprises four main components,a 60-storey condominium tower with 392 residential units, 40 floors of office units, three floors for shopping and businesses as well as an integrated development for the Kampong Baru LRT station and business space or "Bazaar".
"The Puncak Baru project is expected to change and enhance the image of Kampong Baru into a modern village cum commercial centre with the same world status as that of the Kuala Lumpur City Centre or KLCC," he said at the ceremony to launch Puncak Baru in conjunction with the redevelopment of the Sunday market site here today.
The project was launched by the Prime Minister Datuk Seri Abdullah Ahmad Badawi.
Zulhasnan also hoped that the project would serve as the catalyst for the development of Kampong Baru as a whole.
Meanwhile, Naza TTDI chairman SM Nasarudin SM Nasimuddin said the project is expected to begin within three months and slated for completion in four or five years time.
By Bernama
Federal Territories Minister Datuk Seri Zulhasnan Rafique said the project on the land owned by City Hall (DBKL), provides a balance, by taking into account the needs of local residents and that of the property market.
He said that the project comprises four main components,a 60-storey condominium tower with 392 residential units, 40 floors of office units, three floors for shopping and businesses as well as an integrated development for the Kampong Baru LRT station and business space or "Bazaar".
"The Puncak Baru project is expected to change and enhance the image of Kampong Baru into a modern village cum commercial centre with the same world status as that of the Kuala Lumpur City Centre or KLCC," he said at the ceremony to launch Puncak Baru in conjunction with the redevelopment of the Sunday market site here today.
The project was launched by the Prime Minister Datuk Seri Abdullah Ahmad Badawi.
Zulhasnan also hoped that the project would serve as the catalyst for the development of Kampong Baru as a whole.
Meanwhile, Naza TTDI chairman SM Nasarudin SM Nasimuddin said the project is expected to begin within three months and slated for completion in four or five years time.
By Bernama
Country Heights in luxury villa deal
COUNTRY Heights Holdings Bhd said its 70%-owned Borneo Heights Sdn Bhd will cooperate with Coughar Properties Sdn Bhd to develop, construct and market up to 20 premium luxury villa units in Sarawak.
Under the agreement, Borneo Heights will contribute land for the project while Coughar agreed to a minimum total sales value of US$160mil.
By Bernama
Under the agreement, Borneo Heights will contribute land for the project while Coughar agreed to a minimum total sales value of US$160mil.
By Bernama
Saturday, March 28, 2009
RM2bil projects to be launched
Penang to see new development year-round
An artist’s impression of the IJM’s Light Point project along the Jelutong Expressway.
KUALA LUMPUR-BASED developers will execute projects with an estimated gross sales value of RM2bil on Penang island this year despite a challenging economic climate and price the new products competitively.
IJM Land Bhd, for example, is launching projects with estimated gross sales value (GSV) of RM350mil in the second and third quarter of 2009.
These are high-end sea-fronting projects comprising the RM200mil Light Linear, RM102mil Light Point, and the RM48mil Lots 28 located near the Jelutong Expressway.
The Light Linear consists of two 17-storey block of 328 condominiums on a 7.6 acre land, while the Light Point is a 28-storey block of 88 condominiums on a 2.8 acre site, and Lots 28 comprises 28 units of two and three-storey commercial and shop offices on a 2.6 acre site.
Pricing new property launches competitively does not mean lowering the selling price.
IJM Land Bhd managing director Datuk Soam Heng Choon says the group’s new properties would be priced competitively to reflect current construction cost, which in reality was still above the pre-July 2008 level.
“In reality, prices of construction materials are still high, with the exception of steel bars.
“To reduce the price further means to go for lower specification and finishes. “However, the flexible loan packages and other incentives thrown in by the developer will make the properties more affordable,” he says.
Soam adds that the group recently launched the RM174mil Summer Place condominium project, located at the Jelutong Expressway.
“About 40% of the 531 condominiums in Summer Place was taken up on the first two days of the recent soft launch,” he says.
C P Group is implementing its RM300mil BayVillas water project at the end of 2009 for its RM2bil Queensbay project in Bayan Lepas.
Its executive chairman Datuk Tan Chew Piau says the BayVillas comprises 76 waterfront bungalows, waterfront gardens, and garden villas, equipped with built-up areas ranging between 3,100 sq ft and 10,000 sq ft.
The entire project is guarded and has private swimming pool facilities and smart home features.
Tan says the group’s 335-room, Eastin Hotel located in Queensbay, will come on by the end of 2009.
“This will be the second hotel operating under the Eastin brand name,” he says.
Tan adds that the group is holding back the commercial project, BayCapital office suites, scheduled for launching in mid-2008, after the country succumbed to the global economic recession.
To date, CP Group has generated about RM600mil from the sales of its properties in Queensbay.
The largest project to take off the island this year comes from Mah Sing Group Bhd, which expects to launch its RM1.35bil Southbay Penang by mid-2009.
Group managing director and chief executive Datuk Seri Leong Hoy Kum says that the launch of the project would coincide with the completion of Southbay Penang’s showhouses.
Leong says the Southbay Penang had to date attracted more than 3,000 prospective buyers of which 70% had registered their interest for Residence@Southbay’s superlink homes, and the rest registered their interest for Legenda@Southbay’s designer bungalows and Southbay City, the commercial precincts.
On the prices of Southbay Penang’s properties, Leong says the early registrants would still enjoy the old prices they signed up.
“We will not lower the prices but we will make it easier for buyers to own properties through our Easy Home Ownership scheme which has been very well received.
The Southbay Penang, comprising 376 units of landed residential properties and an integrated commercial hub, is scheduled for completion within seven years.
By The Star (by David Tan)
An artist’s impression of the IJM’s Light Point project along the Jelutong Expressway.
KUALA LUMPUR-BASED developers will execute projects with an estimated gross sales value of RM2bil on Penang island this year despite a challenging economic climate and price the new products competitively.
IJM Land Bhd, for example, is launching projects with estimated gross sales value (GSV) of RM350mil in the second and third quarter of 2009.
These are high-end sea-fronting projects comprising the RM200mil Light Linear, RM102mil Light Point, and the RM48mil Lots 28 located near the Jelutong Expressway.
The Light Linear consists of two 17-storey block of 328 condominiums on a 7.6 acre land, while the Light Point is a 28-storey block of 88 condominiums on a 2.8 acre site, and Lots 28 comprises 28 units of two and three-storey commercial and shop offices on a 2.6 acre site.
Pricing new property launches competitively does not mean lowering the selling price.
IJM Land Bhd managing director Datuk Soam Heng Choon says the group’s new properties would be priced competitively to reflect current construction cost, which in reality was still above the pre-July 2008 level.
“In reality, prices of construction materials are still high, with the exception of steel bars.
“To reduce the price further means to go for lower specification and finishes. “However, the flexible loan packages and other incentives thrown in by the developer will make the properties more affordable,” he says.
Soam adds that the group recently launched the RM174mil Summer Place condominium project, located at the Jelutong Expressway.
“About 40% of the 531 condominiums in Summer Place was taken up on the first two days of the recent soft launch,” he says.
C P Group is implementing its RM300mil BayVillas water project at the end of 2009 for its RM2bil Queensbay project in Bayan Lepas.
Its executive chairman Datuk Tan Chew Piau says the BayVillas comprises 76 waterfront bungalows, waterfront gardens, and garden villas, equipped with built-up areas ranging between 3,100 sq ft and 10,000 sq ft.
The entire project is guarded and has private swimming pool facilities and smart home features.
Tan says the group’s 335-room, Eastin Hotel located in Queensbay, will come on by the end of 2009.
“This will be the second hotel operating under the Eastin brand name,” he says.
Tan adds that the group is holding back the commercial project, BayCapital office suites, scheduled for launching in mid-2008, after the country succumbed to the global economic recession.
To date, CP Group has generated about RM600mil from the sales of its properties in Queensbay.
The largest project to take off the island this year comes from Mah Sing Group Bhd, which expects to launch its RM1.35bil Southbay Penang by mid-2009.
Group managing director and chief executive Datuk Seri Leong Hoy Kum says that the launch of the project would coincide with the completion of Southbay Penang’s showhouses.
Leong says the Southbay Penang had to date attracted more than 3,000 prospective buyers of which 70% had registered their interest for Residence@Southbay’s superlink homes, and the rest registered their interest for Legenda@Southbay’s designer bungalows and Southbay City, the commercial precincts.
On the prices of Southbay Penang’s properties, Leong says the early registrants would still enjoy the old prices they signed up.
“We will not lower the prices but we will make it easier for buyers to own properties through our Easy Home Ownership scheme which has been very well received.
The Southbay Penang, comprising 376 units of landed residential properties and an integrated commercial hub, is scheduled for completion within seven years.
By The Star (by David Tan)
i-City project could be a model for other locations, says Hamad
Tan Sri Hamad Kama Piah Che Othman (left) and Datuk Lim Kim Hong. Hamad says i-Bhd has acquired knowledge in developing properties with state-of-the art facilities amd it's good to learn more about it.
The intelligent business park project that I-Bhd is developing in Shah Alam can be constructed along similar lines by the company. It has the expertise and financial resources to do so.
It has made early tracks in establishing a record in this field which is now held back by the global recession. A successful completion of its RM2bil i-City will set it on the road to other states. Permodalan Nasional Bhd (PNB) CEO Tan Sri Hamad Kama Piah is convinced I-Bhd has developed expertise in this niche.
Hamad, who became I-Bhd’s non-executive chairman in February, says: “The i-City project could be a model for other locations and be replicated in other states, from an opportunity point of view.”
To a question on joining a company that’s small for the scale of PNB, he told StarBizWeek recently that it’s not a matter of small or big.
“It has acquired knowledge in developing properties with state-of-the-art facilities and it’s good to learn more about it,” he adds.
i-City boasts multi-telecommunications facilities and high-speed Internet access at a speed of 10 megabits per second (Mbps), which is 10 times the speed of Telekom Malaysia Bhd’s Streamyx service of 1Mbps or less.
The high-speed broadband will be useful for workers of companies in the information technology (IT), animation arts, law, architecture and banking sectors for which i-City is designed for.
In addition to the interest in i-City, Hamad says PNB has been associated with I-Bhd deputy chairman and controlling shareholder Datuk Lim Kim Hong for several decades.
In the 1980s and 1990s, this association was in Dreamland Holdings Bhd where both Lim and PNB were substantial shareholders. Lim sold his controlling stake in Dreamland some years ago. During his watch, Dreamland produced steady profits and dividends, attributes that attract PNB.
Lim, through his family-owned company Sumurwang Sdn Bhd, owns 58% of I-Bhd while PNB owns 18%.
In a re-entry into the corporate sector, Lim bought a controlling stake in Neico Industries Bhd which manufactured Sanyo electrical appliances. Neico was renamed I-Bhd but, after an unsuccessful attempt to expand the electrical appliances business, this division was phased out in 2007.
Its sole business now is its i-City project and a lot of cash.
I-Bhd has net cash of RM120mil, which exceeds the company’s total market value of RM89mil on Thursday.
The i-City project may need RM60mil of that for working capital but the rest of the development cost can be met by other means.
Eu Hong Chew, a director, says I-Bhd can tap a combination of some borrowings, internally-generated profits and capital injections by joint-venture partners.
In a joint venture with the Al Rajhi banking group, for instance, 80% of i-City’s phase one was sold to that group for RM95mil last year, with I-Bhd retaining the balance.
The company has used just 10% of the land for phase one, which leaves most of the rest of the 72-acre i-City to be developed.
While I-Bhd is cash-rich, it is not asset-rich in land as the i-City land was bought and is owned by parent company Sumurwang.
Eu says there is a supportive arrangement with Sumurwang such that I-Bhd pays for the land only as and when each parcel is developed. It is thus an asset-light business model.
In the development, I-Bhd follows a build-and-sell model. It does not sell prior to construction “and it doesn’t even have to borrow to build,” he adds.
By The Star (by C.S.Tan)
I&P upbeat on next phase of Alam Impian township
ISLAND & Peninsular Bhd (I&P) is “cautiously confident” that all the 103 properties under the next phase of its Alam Impian township in Shah Alam will be almost sold within six months of launch in May.
Priced under RM400,000 per unit, the 22ft x 80ft Canting 2 double-storey terrace houses have an estimated gross development value of RM40mil.
Noor Lida Nazri with a model of the Nukilan houses currently being developed by I&P at Alam Impian.
Group marketing and communication general manager Noor Lida Nazri says I&P is confident of strong response because of the project’s location.
“This is an integrated township, not a piecemeal development. It is very hard to get a good township in the Klang Valley.
“However, looking at the market condition now, we probably have to launch in stages as we do not want to flood the market.
“We have to be very cautious but we are confident that terrace houses are still something that people look for,” she tells StarBizWeek in an interview.
Alam Impian is a RM4.5bil township that is expected to be fully developed in 12 to 15 years. I&P plans to build about 10,000 homes on the 1,235 acres of freehold land.
Noor Lida says the next phase will only be launched when sales of Canting 2 have hit between 60% and 70%.
Since Alam Impian was launched in 2006, I&P has sold about 265 of the 309 units launched.
Two earlier phases, Canting and Tinta which were launched last December and in January, comprised 115 double-storey terrace houses and 106 semi-detached units respectively. Both phases are sold out and have been handed over to buyers.
Early this month, I&P launched Nukilan comprising 54 double-storey linked-houses with land area of 24ft x 80ft and priced from RM465,000 per unit.
Noor Lida says a lot of people are viewing the Nukilan show unit but making a commitment would take time due to the economic uncertainty.
“They need to check on financing and the downpayment. So far, we have sold 10 units,” she says, adding that the partial opening of Kemuning-Shah Alam Expressway (LKSA) has allowed quick access to Federal Highway and Shah Alam. The LKSA is expected to be completed by the middle of this year.
I&P has other township development such as Alam Damai (Cheras), Alam Sari (Bangi), Bayuemas (Klang) and Bandar Kinrara (Puchong). The company focuses on landed property and its products cater mostly for locals. It has a land bank of over 5,263ha in the peninsular.
By The Star (by K.C.Law)
Priced under RM400,000 per unit, the 22ft x 80ft Canting 2 double-storey terrace houses have an estimated gross development value of RM40mil.
Noor Lida Nazri with a model of the Nukilan houses currently being developed by I&P at Alam Impian.
Group marketing and communication general manager Noor Lida Nazri says I&P is confident of strong response because of the project’s location.
“This is an integrated township, not a piecemeal development. It is very hard to get a good township in the Klang Valley.
“However, looking at the market condition now, we probably have to launch in stages as we do not want to flood the market.
“We have to be very cautious but we are confident that terrace houses are still something that people look for,” she tells StarBizWeek in an interview.
Alam Impian is a RM4.5bil township that is expected to be fully developed in 12 to 15 years. I&P plans to build about 10,000 homes on the 1,235 acres of freehold land.
Noor Lida says the next phase will only be launched when sales of Canting 2 have hit between 60% and 70%.
Since Alam Impian was launched in 2006, I&P has sold about 265 of the 309 units launched.
Two earlier phases, Canting and Tinta which were launched last December and in January, comprised 115 double-storey terrace houses and 106 semi-detached units respectively. Both phases are sold out and have been handed over to buyers.
Early this month, I&P launched Nukilan comprising 54 double-storey linked-houses with land area of 24ft x 80ft and priced from RM465,000 per unit.
Noor Lida says a lot of people are viewing the Nukilan show unit but making a commitment would take time due to the economic uncertainty.
“They need to check on financing and the downpayment. So far, we have sold 10 units,” she says, adding that the partial opening of Kemuning-Shah Alam Expressway (LKSA) has allowed quick access to Federal Highway and Shah Alam. The LKSA is expected to be completed by the middle of this year.
I&P has other township development such as Alam Damai (Cheras), Alam Sari (Bangi), Bayuemas (Klang) and Bandar Kinrara (Puchong). The company focuses on landed property and its products cater mostly for locals. It has a land bank of over 5,263ha in the peninsular.
By The Star (by K.C.Law)
Raising KL’s living standards
Michael Yam still contributing to property development
VETERAN property developer Datuk Michael Yam wants to contribute towards raising the standards of the country’s living environment through his strategic, technical and project management consultancy firm, Impetus Partnership which he set up last May to offer holistic strategic solutions to property development companies.
Yam ... It’s not too late to undertake a comprehensive master planning for Kuala Lumpur.
Since retiring from Sunrise Bhd last March after helming the company for 11 years, Yam is happy to let go of the responsibilities of “micro managing” to other younger breed of managers.
“My objective is to provide an avenue for people to harness their skills and expand their horizon as entrepreneurs. I see my role as a lead surgeon who works with other specialists to offer holistic solutions to industry players,” says Yam.
He is currently an advisor to several local and foreign conglomerates including Tan Chong Motor Holdings Bhd, Cahya Mata Sarawak Bhd, Serai Saujana Development Sdn Bhd, and more recently Rajawali Corp.
Yam believes the business of creating wholesome living spaces lies with good planning and a good vision from the start of a project’s conception.
“Developers need to be proactive by introducing more zest and refreshing layout plans and designs in their projects. Through more holistic planning strategies, they can make a difference by planning and building more wholesome and energising living spaces for the people,” he says.
The market is getting more sophisticated with consumers demanding more facilities, convenience and built quality to improve their quality of life.
“Good planning and understanding of the relationship between the various usage components is imperative to ensure good quality of life and environmentally-friendly and sustainable developments. Some of the issues to consider include transport connectivity, lifestyle facilities, shopping convenience, community services, as well as security and safety,” he points out.
To keep his passion of building quality residences alive and keep him abreast of the latest building know-how, Yam is also venturing into small niche developments in the Klang Valley.
Together with some partners, Yam is involved in the Serai Saujana residential project, a luxury RM320mil gated and guarded community on ten acres next to the Saujana Golf and Country Club and two 18-hole golf courses in Saujana Subang.
The project comprises two 15-storey blocks of 163 condominiums priced from RM400 to RM650 per sq ft and 42 three-storey villas priced at RM3.5mil to RM4mil each.
Launched early last year, the project is scheduled to be completed next year.
Together with his consortium members who are private equity funds, Yam is also assessing the viability of two parcels in the Damansara area for a commercial project.
With an economic recession at the country’s door step, Yam says the property sector has a big role to play to contribute towards a recovery of the country’s economy given its link to more than 140 other industries.
He hopes to make more contributions and changes for the property industry through his active participation in the Real Estate and Housing Developers’ Association (Rehda). He is Rehda deputy president and also the chairman of Rehda Kuala Lumpur.
He sees his recent two-year term appointment as a member of the advisory board to the city of Kuala Lumpur as a good opportunity for him to contribute towards turning Kuala Lumpur into a sustainable world-class city.
“Kuala Lumpur’s 1.7 million population is expected to expand by 30% within the next decade and there is an urgent need to address the various issues such as putting in place an integrated public transport system, well planned housing projects and world-class infrastructures to meet the needs of the growing population.
“Kuala Lumpur must have in place facilities that can sustain a high density if it wants to continue flourishing and become a world-class city,” Yam points out.
He says by adopting a proactive stand and active joint private-public participation in urban redevelopment programmes, Malaysia’s cities will continue to thrive and change with the needs of the times.
According to Yam, it is still not too late to undertake a comprehensive master planning for Kuala Lumpur as long as there is a strong political will and cooperation from all the relevant stakeholders, including land owners, to enhance the city’s sustainability and quality of life for the city folks. A building engineering graduate from the University of Westminster UK in 1978, Yam is a fellow of the Royal Institution of Surveyors and a qualified member of the Chartered Institute of Building (CIOB).
He had an illustrious career spanning 30 years in the construction, real estate and corporate sectors, including five years in Britain and in various Malaysian companies such as Landmarks Bhd, Peremba Malaysia Sdn Bhd, Country Heights Holdings Bhd and Sunrise Bhd. He was involved in the development of hotels, resorts, shopping malls, golf courses, international schools, residential and mixed developments in Malaysia, Australia, Britain and South Africa.
Among the projects that he feels passionate about include the Georgian Mansion in London, which he looks upon as his “finishing school” after his graduation; Sungei Wang Plaza (for its vibrancy, variety, wealth and profit generated); Carcosa Seri Negara (a restored state guest house for the rich and famous); The Datai resort (a truly world-class Malaysian resort); and the recently opened St Regis Bali Resort in Bali.
Recognising his contribution for steering Sunrise to its leadership position in the high-end condominiums market in the Mont’Kiara enclave and for his good leadership qualities, Yam was voted “CEO of the Year 2002” for Malaysia by American Express Corporate Services and Business Times.
Despite his busy schedule, Yam is serving as a director of the British Malaysian Chamber of Commerce and a trustee of Standard Chartered Charity Trust. He is an independent non-executive director of public listed PECD Bhd and statutory board CLAB Bhd.
Yam is also one of two Asians on the Board of Trustees of the British-headquartered Chartered Institute of Building which sets global standards for the management and implementation of the construction process. He is an examiner and accreditor for the Institute which has 42,000 members worldwide.
With so much on his plate, Yam is taking his time to evaluate and analyse offers available on the table.
“Certain criteria have to be met. Apart from the land being in prime location, the project must be easily accessible, has the right address and on a friendly terrain, is not too large, has good visibility and is located in a neighbourhood where the market is ready and receptive towards a green and sustainable development,” he says.
By The Star (by Angie Ng)
VETERAN property developer Datuk Michael Yam wants to contribute towards raising the standards of the country’s living environment through his strategic, technical and project management consultancy firm, Impetus Partnership which he set up last May to offer holistic strategic solutions to property development companies.
Yam ... It’s not too late to undertake a comprehensive master planning for Kuala Lumpur.
Since retiring from Sunrise Bhd last March after helming the company for 11 years, Yam is happy to let go of the responsibilities of “micro managing” to other younger breed of managers.
“My objective is to provide an avenue for people to harness their skills and expand their horizon as entrepreneurs. I see my role as a lead surgeon who works with other specialists to offer holistic solutions to industry players,” says Yam.
He is currently an advisor to several local and foreign conglomerates including Tan Chong Motor Holdings Bhd, Cahya Mata Sarawak Bhd, Serai Saujana Development Sdn Bhd, and more recently Rajawali Corp.
Yam believes the business of creating wholesome living spaces lies with good planning and a good vision from the start of a project’s conception.
“Developers need to be proactive by introducing more zest and refreshing layout plans and designs in their projects. Through more holistic planning strategies, they can make a difference by planning and building more wholesome and energising living spaces for the people,” he says.
The market is getting more sophisticated with consumers demanding more facilities, convenience and built quality to improve their quality of life.
“Good planning and understanding of the relationship between the various usage components is imperative to ensure good quality of life and environmentally-friendly and sustainable developments. Some of the issues to consider include transport connectivity, lifestyle facilities, shopping convenience, community services, as well as security and safety,” he points out.
To keep his passion of building quality residences alive and keep him abreast of the latest building know-how, Yam is also venturing into small niche developments in the Klang Valley.
Together with some partners, Yam is involved in the Serai Saujana residential project, a luxury RM320mil gated and guarded community on ten acres next to the Saujana Golf and Country Club and two 18-hole golf courses in Saujana Subang.
The project comprises two 15-storey blocks of 163 condominiums priced from RM400 to RM650 per sq ft and 42 three-storey villas priced at RM3.5mil to RM4mil each.
Launched early last year, the project is scheduled to be completed next year.
Together with his consortium members who are private equity funds, Yam is also assessing the viability of two parcels in the Damansara area for a commercial project.
With an economic recession at the country’s door step, Yam says the property sector has a big role to play to contribute towards a recovery of the country’s economy given its link to more than 140 other industries.
He hopes to make more contributions and changes for the property industry through his active participation in the Real Estate and Housing Developers’ Association (Rehda). He is Rehda deputy president and also the chairman of Rehda Kuala Lumpur.
He sees his recent two-year term appointment as a member of the advisory board to the city of Kuala Lumpur as a good opportunity for him to contribute towards turning Kuala Lumpur into a sustainable world-class city.
“Kuala Lumpur’s 1.7 million population is expected to expand by 30% within the next decade and there is an urgent need to address the various issues such as putting in place an integrated public transport system, well planned housing projects and world-class infrastructures to meet the needs of the growing population.
“Kuala Lumpur must have in place facilities that can sustain a high density if it wants to continue flourishing and become a world-class city,” Yam points out.
He says by adopting a proactive stand and active joint private-public participation in urban redevelopment programmes, Malaysia’s cities will continue to thrive and change with the needs of the times.
According to Yam, it is still not too late to undertake a comprehensive master planning for Kuala Lumpur as long as there is a strong political will and cooperation from all the relevant stakeholders, including land owners, to enhance the city’s sustainability and quality of life for the city folks. A building engineering graduate from the University of Westminster UK in 1978, Yam is a fellow of the Royal Institution of Surveyors and a qualified member of the Chartered Institute of Building (CIOB).
He had an illustrious career spanning 30 years in the construction, real estate and corporate sectors, including five years in Britain and in various Malaysian companies such as Landmarks Bhd, Peremba Malaysia Sdn Bhd, Country Heights Holdings Bhd and Sunrise Bhd. He was involved in the development of hotels, resorts, shopping malls, golf courses, international schools, residential and mixed developments in Malaysia, Australia, Britain and South Africa.
Among the projects that he feels passionate about include the Georgian Mansion in London, which he looks upon as his “finishing school” after his graduation; Sungei Wang Plaza (for its vibrancy, variety, wealth and profit generated); Carcosa Seri Negara (a restored state guest house for the rich and famous); The Datai resort (a truly world-class Malaysian resort); and the recently opened St Regis Bali Resort in Bali.
Recognising his contribution for steering Sunrise to its leadership position in the high-end condominiums market in the Mont’Kiara enclave and for his good leadership qualities, Yam was voted “CEO of the Year 2002” for Malaysia by American Express Corporate Services and Business Times.
Despite his busy schedule, Yam is serving as a director of the British Malaysian Chamber of Commerce and a trustee of Standard Chartered Charity Trust. He is an independent non-executive director of public listed PECD Bhd and statutory board CLAB Bhd.
Yam is also one of two Asians on the Board of Trustees of the British-headquartered Chartered Institute of Building which sets global standards for the management and implementation of the construction process. He is an examiner and accreditor for the Institute which has 42,000 members worldwide.
With so much on his plate, Yam is taking his time to evaluate and analyse offers available on the table.
“Certain criteria have to be met. Apart from the land being in prime location, the project must be easily accessible, has the right address and on a friendly terrain, is not too large, has good visibility and is located in a neighbourhood where the market is ready and receptive towards a green and sustainable development,” he says.
By The Star (by Angie Ng)
A softening housing sector
The property market in Penang experienced a slight decrease in sales for the first three months of 2009, compared to the previous corresponding period, and the housing sector is likely to soften further by end year.
Although there is a drop in sales, there is no corresponding decrease in property prices.
Henry Butcher Malaysia (Penang) director Dr Teoh Poh Huat says at this juncture there were no symptoms of a “fire sale”.
“For sub-sales, some owners are asking for a lower price to attract buyers. However, current sentiments suggest that the property market will become increasingly soft by the end of 2009,” he says.
Presently landed properties in Penang are still holding firm at RM600,000 to RM700,000, depending on the location and size of the properties. Mid-end high-rise properties are still priced between RM300,000 and RM400,000 for a 1,000sq ft unit, depending on their sizes and location.
The price of super-condominiums still hovers between RM2mil to RM3mil.
The total transactions in terms of sales volume and value in Penang for 2008 are expected to be at least 20% lower than 2007, although the finance ministry had yet to release the official figures.
Teoh says the high-end category was more vulnerable to the global economic climate because the owners were now under pressure to seek suitable tenants or a divestment opportunity.
“Rental returns from the high-end properties are also rather low.
“It is now a buyers’ and a tenants’ market for the high-end property segment in Penang.
“Expatriates are now spoilt for choice,” he says.
Teoh says the mid to high-end segment was quite sustainable, due to the demand from the young population in Penang.
Real Estate & Developers Housing Association chairman Datuk Jerry Chan says the price of properties in Penang would not plunge drastically.
“This is because prices in Penang have moved upwards gradually between 7% to 10% per annum over the past five years, unlike the KLCC area where property prices doubled during the period 2006-2008,” he says.
Chan adds that developers were now dishing out free legal fees on sales and purchase agreement, free legal fees on loan, and other easy payment terms to roped in buyers during this challenging market condition.
On the mainland, there is a 20%-30% drop in property transaction for the first three months of 2009, compared to last year’s corresponding period, due to the uncertainty in the prevailing market and the caution banks are taking towards loans.
Prai-based Kington Real Agency business development manager Frankie Soon says however, there was no corresponding drop in prices.
“The single-storey terraced properties are the most popular in Seberang Prai.
“However, developers are not building that many because they are not profitable,” Soon says.
By The Star
Although there is a drop in sales, there is no corresponding decrease in property prices.
Henry Butcher Malaysia (Penang) director Dr Teoh Poh Huat says at this juncture there were no symptoms of a “fire sale”.
“For sub-sales, some owners are asking for a lower price to attract buyers. However, current sentiments suggest that the property market will become increasingly soft by the end of 2009,” he says.
Presently landed properties in Penang are still holding firm at RM600,000 to RM700,000, depending on the location and size of the properties. Mid-end high-rise properties are still priced between RM300,000 and RM400,000 for a 1,000sq ft unit, depending on their sizes and location.
The price of super-condominiums still hovers between RM2mil to RM3mil.
The total transactions in terms of sales volume and value in Penang for 2008 are expected to be at least 20% lower than 2007, although the finance ministry had yet to release the official figures.
Teoh says the high-end category was more vulnerable to the global economic climate because the owners were now under pressure to seek suitable tenants or a divestment opportunity.
“Rental returns from the high-end properties are also rather low.
“It is now a buyers’ and a tenants’ market for the high-end property segment in Penang.
“Expatriates are now spoilt for choice,” he says.
Teoh says the mid to high-end segment was quite sustainable, due to the demand from the young population in Penang.
Real Estate & Developers Housing Association chairman Datuk Jerry Chan says the price of properties in Penang would not plunge drastically.
“This is because prices in Penang have moved upwards gradually between 7% to 10% per annum over the past five years, unlike the KLCC area where property prices doubled during the period 2006-2008,” he says.
Chan adds that developers were now dishing out free legal fees on sales and purchase agreement, free legal fees on loan, and other easy payment terms to roped in buyers during this challenging market condition.
On the mainland, there is a 20%-30% drop in property transaction for the first three months of 2009, compared to last year’s corresponding period, due to the uncertainty in the prevailing market and the caution banks are taking towards loans.
Prai-based Kington Real Agency business development manager Frankie Soon says however, there was no corresponding drop in prices.
“The single-storey terraced properties are the most popular in Seberang Prai.
“However, developers are not building that many because they are not profitable,” Soon says.
By The Star
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