NZ house prices rise, rate hike seen on horizon

WELLINGTON: New Zealand's housing sector recovered to its best position in a year in September and the central bank said it would end some emergency support measures amid an improving economy, bolstering expectations of interest rate rises early next year, according to Reuters.

The country is slowly emerging from its worst recession in more than 30 years and the return of some strength and normality in both housing and finance markets has analysts looking for a similar change in the Reserve Bank of NZ's rate policy.

"While we do not expect the RBNZ to increase the cash rate until June 2010, we see the risks skewed to an earlier start," ASB Bank economist Jane Turner said on Wednesday, Oct 14.

The central bank said the decision to remove some temporary measures brought in last year to boost liquidity amid the global financial crisis had no implications for its rate policy.

It has said in its past three rate reviews that it expects to keep rates at their current record low 2.5 percent or lower until the latter part of 2010, as it waits for clear signs the economy is back on a solid footing.

Market players have already priced in a full 25 basis point rise in the first quarter since the RBNZ dropped an explicit reference to rates possibly moving lower in its Sept. 10 statement.

Financial markets were unmoved by the real estate data, although the RBNZ's move was seen as a factor in the NZ dollar moving higher to settle around US$0.7390 after resuming local trading around US$0.7340.

A steady stream of data has shown higher retail sales and more confident consumers and businesses. The economy grew 0.1 percent in the three months to June 30 after five consecutive quarters of contraction.

But policy makers around the world are grappling with the question of whether signs of life are due far more to government stimulus measures than a real recovery in demand, which is key to a sustainable global rebound.

The RBNZ bank last month also renewed its warnings about the danger that a return to debt-fueled housing inflation could pose to an economic recovery, echoing concerns in some parts of Asia such as South Korea and Hong Kong.

HOUSING MARKET IMPROVING

The Real Estate Institute of NZ data showed a near 10 percent jump in house sales in September from August, and more than 46 percent on a year ago, while prices were up nearly 1 percent on the month before and 6.1 percent on a year ago.

"We're seeing a slow, but steady, appreciation in sale values, and we're now back to the prices being fetched in the corresponding period in 2007," said Real Estate Institute President Peter McDonald.

However, the still fragile nature of the New Zealand economy was seen in the government's fiscal accounts for the year to June 30, which showed a core deficit of NZ$3.89 billion (US$2.88 billion), a third higher than forecast in May, as the recession savaged the tax take and forced up expenses.

Finance Minister Bill English said the government has accelerated its borrowing to around NZ$10 billion a year for the medium term as it faces a decade of large deficits and high debt.

He also reiterated the oft-voiced worries about the strength of the currency, which could make exports less competitive and impede a broader economic recovery.

"It is quite a concern to us for the nature of the recovery," he told a media briefing on the government's annual accounts.

In relation to financial market liquidity, the measures being changed included dropping a weekly term auction facility that banks used to borrow using a wide range of collateral, changing lending periods, scrapping a weekly bill tender and amending its weekly open market operations.

"The usage of these special facilities has been very low in the last six months," said Deputy Governor Grant Spencer. "This decision has no implications for the stance of monetary policy."

By Reuters

Impiana to invest RM200m in new Malaysian, Thai hotels

Hotelier Impiana Hotels & Resorts will invest some RM200 million over the next three years for new hotels in Malaysia and Thailand.

The hotels will be within the Klang Valley, in Tioman, Pahang, and in Phuket, Thailand.

Chairman Datuk Seri Farouk Abdullah, in a recent interview with Business Times, said it is now building 12 luxury private villas with individual pools, in Kata Noi, Phuket at a cost of RM40 million.

To be ready by end-2009, the Kata Noi hotel is expected to garner between RM3,700 per night for a 1,200 sq ft villa to RM5,500 per night for a 2,500 sq ft suite.
In Malaysia, Impiana group is keen to run a four-star or five-star hotel in Petaling Jaya, Selangor or in Bangsar, Kuala Lumpur and it has budgeted RM100 million for this.

"We are in talks with a few people, but it is still preliminary," he said.

And if it cannot find a suitable property, it will look at building a hotel at one of the two locations it has identified.

He expects to fund the purchase of building with internal funds and borrowings.

"We are working towards raising the funds," he said.

Meanwhile, Farouk said Impiana may also develop up-market villas in Tioman island.

"We are looking at Tioman. We have 10 ha of land there. We are looking at 30 to 40 units of luxury villas," Farouk said, adding that this could cost between RM50 million and RM60 million, excluding land.

Hotels under the group with the Impiana brand are Impiana Resort Cherating, Impiana KLCC Hotel & Spa, Impiana Koh Samui and Impiana Phuket Cabana Resort.

Impiana is also buying the Impiana Casuarina Ipoh, which it has been managing for two years, for RM44 million from Perak Corp Bhd.

The hotel, now rated as a three-star, will undergo a RM5 million makeover to be upgraded to a four-star property and help garner a higher room rate of RM230 and occupancy of 75 per cent.

Meanwhile, Farouk said that is still in talks to buy between 20 per cent and 25 per cent stake in Impiana KLCC from its owners Heritage Lane Sdn Bhd.

By Business Times (by Vasantha Ganesan)

Impiana aims to have 20 hotels under its wings by 2015

MALAYSIAN owned and operated Impiana Hotels & Resorts hopes to have 20 hotels under its ambit by 2015, says its top official.

It plans to either own, manage or do a combination of both for these hotels that could be in Malaysia or abroad.

The group, with a hotel presence in Malaysia and Thailand, hopes to make inroads into the Middle East market by end-2010.

"We hope that in the next two to three years we are able to sign 10 management contracts," chairman Datuk Seri Farouk Abdullah said.
"Businessmen from the Middle East have approached us, we should be there (in the Middle East) next year to manage hotels," he told Business Times.

There are five hotels under the Impiana brand now, and a sixth - Impiana Kota Noi will open in December 2009.

On where else it would like to see the Impiana hotel brand, Farouk said that it would also like to be in Krabi and Bangkok in Thailand.

The group's hotel operation now enjoys a gross operating profit (GOP) of 30 per cent with its hotels in Thailand enjoying between 43 per cent and 45 per cent in GOP.

GOP is gross revenue (from rooms, food and beverage, laundry or business centre) minus the cost of operations.

The five hotels contributed some RM80 million in revenue last year.

Given the current economic environment and the Influenza A (H1N1) flu, Impiana projects that its performance in 2009 will be the same as in 2008.

In 2010, revenue from hotel operations is expected to improve by a tenth.

The Impiana group is part of the KAB Group. Hotel operations and property development each contribute 40 per cent to total group revenue.

By Business Times

Glomac: We'll sell office towers en-bloc if offers meet our price

GLOMAC Bhd says it is willing to sell en-bloc its seven office towers under development to improve its earnings and develop future projects.

The property developer has this year alone sold two office buildings - Wisma Glomac 3 and Block B of Glomac Business Centre - for RM72.6 million

"If we do have offers (for any of the office towers) that meet our price then we will sell," group managing director Datuk FD Iskandar told Business Times recently.

He said Glomac is talking with several parties who are interested in buying the office blocks.
"There is now, suddenly, a demand for office towers outside of Kuala Lumpur's central business district," he added.

He said Glomac is also close to finalising the sale of a 25-storey building at its Glomac Damansara project.

"Hopefully within a month we should be able to make an announcement of a very substantial sale in probably Glomac Damansara first. Its almost a done deal," he said.

A recent Business Times report stated that Glomac intends to sell a 30-storey corporate tower in Glomac Damansara to a government agency for RM200 million.

The upmarket RM800 million Glomac Damansara development in Petaling Jaya also has another 15-storey office tower, including two 25-storey serviced apartment blocks, five- and eight-storey shop offices, nine- and 11-storey office suites and a hybrid retail mall.

Glomac is now marketing the RM75 million 15-storey office tower on an en-bloc basis.

By Business Times (by Rupinder Singh)

Low Yat sees RM55m rentals from Rivercity

Leow Sian Hong ... 'We found Jalan Ipoh to be a strong catchment area'.

KUALA LUMPUR: Low Yat Group, which is investing RM7mil to upgrade its Rivercity mixed development at Jalan Ipoh here, expects the project to generate RM55mil in rentals over the next five years.

Deputy general manager Leow Sian Hiong said she expected rental rates to double to RM8 per sq ft once the upgrading works were completed.

“We expect revenue of RM55mil over the next five years. We want to transform one of Kuala Lumpur’s oldest and bustling areas into a vibrant lifestyle hub,” Leow told a media briefing yesterday.

Refurbishment works started early this year and is expected to be completed by year-end.

Leow said the group was renting up to 162,000 sq ft of space and was trying to secure tenants, especially for a supermarket it had started building within the development.

“We currently have an occupancy rate of 50%. With the supermarket coming in, we should reach 70%,” she said.

Low Yat, in a statement issued yesterday, said it was targeting a 90% take-up rate for Rivercity by the first quarter of 2010.

“We are very selective about the tenants we choose,” Leow said.

In a slide show presentation, Leow said the bulk of the lettable areas would be for food and beverage outlets and offices.

Rivercity will also offer home furnishing outlets, beauty and wellness centres, education facilities like the Victoria International College, edutainment, telecommunications and service centres.

“Located on nine acres of prime land, Rivercity is positioned to meet the discerning taste and needs of the ever growing population of more than 300,000 families, college, schools, business and commercial entities with its 5km radius,” Leow said.

“It will also help boost the rental yields of our Rivercity condominium which is located within the area.”

She said the group decided to embark on the upgrades following an in-depth study on the locality.

“We found Jalan Ipoh to be a strong catchment area as it is strategically located within the city centre with multiple roads and highways accessible via Jalan Tun Razak, Jalan Kuching, Jalan Duta, North Klang Valley Expressway, Duta-Ulu Kelang highway and the Penchala Link,” Leow said.

By The Star

Refurbishment of Rivercity to boost Low Yat rental income

Property development and investment firm Low Yat Group expects to earn RM55 million in rental income from its Rivercity project over the next five years after it raises prices following a refurbishment.

Rivercity, located at Batu 3, Jalan Ipoh, in Kuala Lumpur, features eight 1- to 3-storey warehouses and shop-office blocks, built in the 1940s.

The properties are being given a RM7 million facelift, slated for completion by December, its deputy general manager for property development Leow Sian Hiong said.

After the refurbishment, Low Yat will increase rental rates to between RM4 and RM8 a sq ft from RM2 to RM4 a sq ft currently.
"We are refurbishing the properties to enhance the appeal of Jalan Ipoh and transform the area into a vibrant lifestyle hub.

"We may (further) raise rental rates after the fifth year, but it will depend on the market situation," Leow told a media briefing in Kuala Lumpur yesterday.

One of the three-storey shop-office blocks has been redeveloped into a seven-storey office building. It is home to Low Yat and Asia Pacific Land (AP Land) Bhd, which has moved out from Empire Tower in Jalan Tun Razak.

Low Yat, set up in 1947, is a substantial shareholder of AP Land, which has an integrated development worth nearly RM1 billion next to Rivercity.

Leow said the remaining seven blocks at Rivercity will comprise food and entertainment outlets, home furnishing concept stores, showrooms, beauty and wellness outlets, and electrical and electronics as well as telecommunications centres.

There will also be a 25,000 sq ft supermarket, which will boost Rivercity's current occupancy of 50 per cent to almost 90 per cent by the first quarter of next year.

Leow said Rivercity will be positioned to meet the taste and needs of the growing population of more than 300,000 families, students and business community within its 5km radius.

Meanwhile, Low Yat's development plans for next year include taking its flagship brand, Fairlane Hospitality, global.

Its real estate management firm, Fairlane Hospitality Sdn Bhd, offers hospitality services to the group's serviced residences such as Bintang Fairlane Residences in Bukit Bintang, Kuala Lumpur, and plans to expand overseas.

By Business Times (by Sharen Kaur)

FDI inflow into Iskandar's first phase may top target

ISKANDAR Malaysia in Johor could surpass the US$13 billion (RM44 billion) foreign direct investment target for its first phase of development due to fresh investment interest from Hong Kong, South Korea and Europe.

To date, the economic zone has received 92 per cent, or US$11 billion, of the targeted amount in the first phase of investment.

"We have a lot of foreign developers and investors who have expressed surprise that we are not better known.

"They said Iskandar Malaysia is Asia's best-kept secrets. We can expect Iskandar Malaysia to have a new wave of investments next year," Iskandar Investment Bhd (IIB) managing director Arlida Ariff told Business Times in an interview.
IIB, a unit controlled by state-owned investment arm Khazanah Nasional Bhd, is the catalytic developer of Iskandar Malaysia.

Arlida said investors are attracted to the economic zone as the entry level for investments is lower than other parts of the world.

She added that Iskandar Malaysia has become a viable alternative for investors who want to go into less risky types of investments.

Three times the size of Singapore, Iskandar Malaysia spans 2,217 sq km and is a mixed use development planned for completion in 2025.

The expected investment of US$110 billion (RM375 billion) is split between an initial start-up of US$13 billion from 2006-2010 and US$97 billion (RM331 billion) from 2011-2025.

Since its launch in November 2006, the bulk of investments into Iskandar Malaysia have come from Asia, Europe and the Middle East with focus on manufacturing, pro-perty and tourism projects.

The biggest investment is from Acerinox SA of Spain and Japan's Nisshin Steel, which have committed RM5 billion in investments to build a stainless steel plant.

IIB's Arab partners - Mubadala, Millenium, Kuwait Finance House and Aldar - have committed another US$1.2 billion (RM4.27 billion) to develop properties in Medini in Nusajaya.

Interest has also been shown by Merlin Entertainment to build Legoland Malaysia in Medini for US$200 million (RM726 million) and the UK's Newcastle University of Medicine to set up a branch campus worth US$100 million (RM363 million) in EduCity.

Arlida said the design for Legoland Malaysia has been finalised and 26 sub-contracts have been awarded. "We target to break ground at the site by November this year," she added.

By Business Times (by Sharen Kaur)

Construction sector still unaware of certificate of approval

PETALING JAYA: The problems surrounding the implementation of the certificate of approval (COA) on iron and steel products have not been totally resolved, said Master Builders Association Malaysia (MBAM) president Ng Kee Leen.

“Some of the industry players are still not aware about it (the COA). However, we have worked closely with the Construction Industry Development Board (CIDB) and some major issues have been sorted out,” he told StarBiz.

The ruling on COAs, which are issued by CIDB for the construction sector and by Sirim for the non- construction sector, follows the liberalisation of the iron and steel industry. The move is aimed at preventing the infux of sub-standard products into the country.

Rehda president Ng Seing Liong said that while he preferred the market to be open, end users should not be penalised.

OSK research analyst Ng Sem Guan said the implementation of the COA would protect the market share of local steel players. It was recently reported that iron and steel products were stranded at several air, sea and road entry points into the country as Customs was unable to clear the shipments without approval from the CIDB and Sirim Bhd.

By The Star (by Eileen Hee)

SunCity sees strong recovery

Artist’s impression of Sunway Opus Grand in Hyderabad

PETALING JAYA: Sunway City Bhd (SunCity) is looking at a strong recovery from the dampened sales inflicted by the global financial crisis and plans to move on with its planned property projects both locally and abroad.

According to SunCity managing director for property development Ngian Siew Siong, the local property market had not been too badly impacted by the global crisis and it should recover quite fast.

Ngian Siew Siong ... ‘With the country’s economy expected to bounce back next year, property demand should also move in tandem.’

“Demand for property is a function of economic growth and, with the country’s economy expected to bounce back next year, property demand should also move in tandem with the higher market confidence,” he said.

For the fourth quarter ended June 30, SunCity’s property sales showed a strong rebound of 120% to RM88mil from RM40mil in the previous quarter.

The stronger sales were mainly due to improving consumer sentiment and the launch of the “Triple Z Series” promotion in April.

Sunway SPK Villa Manja’s semi-detached residences showed a stronger take-up with RM57mil sales during the quarter compared with RM8mil in the preceding quarter.

However, year-to-date revenue was down 16.8% to RM1.09bil compared with the previous corresponding period while earnings before interest and tax dropped 7.8% to RM331.1mil.

Property development earnings, which dropped 39.6% year-on-year due to lower sales and construction progress, were the main culprit. For the current financial year, SunCity will be changing its financial year-end from June 30 to Dec 31.

To further boost its RM743mil unbilled sales, which will provide more than a year’s earnings visibility for the company, SunCity is planning over RM1bil in new launches next year.

The projects include Sunway Velocity in Jalan Peel, Sunway-SPK townhouses, South Quay condominiums, and Sunway Damansara zero-lot bungalows.

Ngian said the company would be using its cash reserve of close to RM450mil to expand its land bank in the Klang Valley as well as in China and India. “Land prices have come off from their previous highs and we are actively looking to make some value buy.”

SunCity would also be launching its India and China projects next year.

“We have already done our homework and feasibility studies on both countries and we like what we saw there. There is a growing middle-class population and the higher purchasing power is translating into greater demand for housing,” Ngian said.

With a population of 1.3 billion in China and 1.2 billion in India, the two countries make up 40% of the world population. The sheer size and growth prospects were very attractive, he added.

For its maiden project in China, SunCity has partnered with Sunway Holdings Bhd’s subsidiary, SunwayMas Sdn Bhd, and Shanghai Guanghao Real Estate Development Group Co Ltd for a mixed high-rise development in the central business district of Jiangyin New Harbour City in Jiangsu Province.

The 39:26:35 joint venture to develop the RM492mil project will be launched in mid-2010. The Sunway Guanghou Jiangyin project will have 1,172 medium-end condominiums and some specialty shops on about 17 acres.

“We believe our maiden project in China will be our platform to secure other future property projects in this high growth country, especially in tier-two cities,” Ngian said.

In India, SunCity’s maiden project, Sunway Opus Grand in Hyderabad with a gross development value of RM1.17bil, is also targeted for launch next year.

The 35-acre project will comprise 2,423 medium-range condominiums priced from RM193 per sq ft.

Ngian said India was still a very young country as far as progress in property development was concerned, and SunCity’s expertise in project design, quality and management capability had opened up immense opportunities to play a bigger role in its property market.

Its preferred cities include Hyderabad, Bangalore and Pune. Hyderabad tops the list as its growth is fuelled by the information technology and biotech industries.

Besides a huge demand for quality housing, Grade-A commercial properties are also in short supply in India.

By The Star (by Angie Ng)

Positive Q4 outlook for construction

KUALA LUMPUR: The outlook for the domestic construction sector looks positive in the fourth quarter, but the roll-out of major projects will likely only happen next year, analysts and industry players said.

Ng Kee Leen ... 'Developers must be market driven'.

Master Builders Association Malaysia (MBAM) president Ng Kee Leen said there was certainly greater optimism of a revival in the construction sector, thanks mainly to the Government’s stimulus packages and overall improvement in the global economy.

“We are definitely seeing more tenders and small public works jobs being dished out in recent months, but most of the bigger or mega projects are likely to be rolled out next year,” he told StarBiz recently.

The construction sector grew 1.1% in the first quarter but contracted 2.8% in the second.

“We expect the third and fourth quarter results to be positive,” he said, adding that the construction sector’s growth for the whole of 2009 could be 3%.

For 2010, Ng said “barring unforeseen circumstances, the construction sector’s gross domestic product should be better than this year’s 3% forecast, but definitely well below the highs seen in early 2000 when it was hovering around 6% to 7%.”

The construction sector remains attractive, especially since material costs such as sand, steel and cement prices have stablised, he said.

However, Ng advised construction players, especially developers in the sector, to not just build “more of the same” and expect the market to mop up whatever they build.

“Developers must be market driven to build projects that are wanted by the community,” he said, adding that there was now more interest in energy-saving buildings that embraced the green concept.

According to Ng, the construction sector’s yearly turnover was around RM60bil.

“About 50% of this turnover are from government projects and the balance from private initiated investments,” he said, adding that much of the government spending was for infrastructure development, including road works.

Ng noted that developers were also more confident of the property sector’s growth, with some unlisted ones like GSB Sentral Sdn Bhd, a member of the diversified Gapurna Group, having already started groundworks on its 348 Sentral development – a green property project with a gross development value RM1.1bil to be completed 2012.

GSB Sentral director Imran Salim said the company was very confident of the project’s success going by the 60% uptake of floor space of the building by its main tenant – Shell Malaysia.

Datuk Osman Abu Bakar, the secretary-general of the Malay Contractors Association which represents some 7,000 bumiputra contractors, said many of the projects dished out so far by the Government were for smaller projects.

“There are more tenders and small construction projects out these days and our members have benefited from these projects as our members are mostly Class F contractors,” he said.

A member of the Indian Contractors’ Association said he had benefited from the Government’s simulus packages.

“Most of the contracts we’ve secured are small roadworks projects. However, our company has not derived any benefits or jobs from mega projects,” he said.

A construction analyst with OSK Research concurred that the construction sector was on the road to recovery and that players in the market, from developers and contractors to real estate agents, were definitely more optimistic of the sector’s growth going forward.

“There are more property launches by developers and more tenders this third and fourth quarters. This is a good sign. But many contractors are waiting for more mega projects to be rolled out, which we suspect will occur next year,” he said.

The billion-ringgit projects that are likely to be rolled out or have been confirmed include the RM9bil Pahang-Selangor interstate raw water transfer project, the RM7bil Kelana Jaya and Ampang light rail transit line extension works and the construction of the low-cost terminal, according to the OSK analyst.

A construction analyst from another brokerage said that while there were early signs that the construction sector was recovering, the rollout pace of major projects remained slow.

“Also, now that the global economy appears to be on the mend, we wonder if the mega projects proposed when the economy was in a downturn will be implemented,” the analyst said.

“Granted mega projects implemented can help boost significantly the construction sector, but government funds on smaller infrastructure projects such as those in east Malaysia can also have significant impact on the overall health and resilience of the Malaysian economy, besides the construction sector, over a longer term.”

By The Star (by Danny Yap)

Saudi developer to start 7.5b-riyal Jeddah project

RIYADH: Saudi Arabia's Dar Al-Arkan said yesterday it would spend 7.5 billion riyals (100 riyals = RM92.64) over a period of five years on a new residential project in Jeddah.

Construction on the new project, which will have more than 10,000 units, will begin in 2010, according to a statement on the bourse website.

Dar al-Arkan Real Estate Development Co, Saudi Arabia's largest developer by market value, on Saturday reported a 14.4 per cent drop in third-quarter net profit due to a property sector slowdown.

The company made a net profit of 616.2 million riyals in the three months to Sept 30, down from 719.5 million riyals a year earlier, it said in a statement on the Saudi bourse website.
"The decline in third-quarter net profit ... is due to the higher profit margin (made) during the third quarter of last year, itself due to the growth recorded by the real estate market throughout much of 2008," it said.

Revenues stood at 1.52 billion riyals in the three-month period, up from 1.48 billion riyals a year earlier, it added.

"The (revenues') growth of 2.8 per cent reflects the stability of the property market," it said.

By Reuters

Malaysians urged to invest in Saudi project

RIYADH (Saudi Arabia): Jabal Omar Development Co has invited greater Malaysian participation, including Tabung Haji, in the 24ha real estate project near the Grand Mosque in Mecca.

International Trade and Industry Minister Datuk Mustapa Mohamed, who is on the final leg of his week-long trade and investment mission to three Arab countries, said the project involves 18 billion Saudi riyal (RM17 billion).

"Work has started. They are inviting Malaysian investors, including Tabung Haji, to rent part of the area that is under development," he said here last Saturday.

"God willing, we are able to hold meetings with the relevant parties in Malaysia to encourage them to invest in this project."
Jabal Omar Development Co, listed on the Saudi Stock Exchange, is the real estate investment, development and property manager of Jabal Omar.

The project, aimed mainly at providing better housing facilities for pilgrims, will have 92 multi-storey buildings, 27 five-star and four-star hotels, parking for 12,000 vehicles, commercial centres, 4,500 shops and 3,000 showrooms, a central transport station, and prayer facilities for 202,000 worshippers.

The land and infrastructure part of the project is scheduled for completion next year.

Mustapa said that he had also been briefed by Saudi Arabia-Malaysia Business Council chairman Dr Sheikh Ghassan Al-Sulaiman on the possibility of enhancing further bilateral cooperation, including the participation of Malaysian companies in several integrated tourism projects.

"This is one field that is being developed by Saudi Arabia. Previously, tourism was seen as a less convincing sector, but today, many of the Gulf nations, including Saudi Arabia, are diversifying their economies,

"In the past, they relied too much on oil and gas. Today, they all want to diversify their economies, and I was briefed that tourism is one of the sectors in focus."

Mustapa added that the sector was open not only for Saudis but also for people in the Gulf region.

"Therefore, the opportunity for Malaysian companies is really good."

By Bernama

Glomac to see 'explosive' earnings growth

Maybank Investment Bank Bhd has rated Glomac Bhd, a Malaysian developer, a new “buy” with a target price of RM1.78.

The research outfit said Glomac will record "explosive” earnings growth over 2009 to 2012, driven by high-margin commercial projects.

The shares of Glomac Bhd rose 4 per cent to RM1.31, set for the highest level since February 18, 2008.

By Business Times

Commuters want exact locations of new stations

It has been almost a month since Syarikat Prasarana Negara Bhd revealed its preferred alignments for the proposed extension to the Kelana Jaya and Ampang LRT lines.

Since then, there have been numerous calls by residents and stakeholders requesting that the exact locations of the stations be identified.

Having a clear idea of where these stations are located would help people provide feedback, comments and suggestions to the proposed lines as well as prevent any confusion in future that might hamper the project.

Several locations have been proposed and it is believed that the most of the stations will be within a 500m radius of these locations with some exceptions.

The Kelana Jaya line starts from the Kelana Jaya station, passing through Subang Jaya and USJ, before ending at Putra Heights, covering 17km, with 13 new stations.

There are two stations in Petaling Jaya, while Subang Jaya has seven stations located along Jalan Jengka and Persiaran Kewajipan and three stations in Putra Heights.

The line will have five stations with multi-storey park-and-ride facilities.

The Ampang line, which spans 17.7km, starts at the Sri Petaling station and passes through the Kinrara and Puchong industrial zones before ending at Putra Heights.

It has 13 stations, with six multi-storey carpark and park-and-ride facilities, including Putra Heights. Two stations are located in Kuala Lumpur, while 10 stations are in Puchong.

The 35km of lines, which are estimated to cost about RM7bil, will be elevated and are expected to be ready by 2012.

For those wanting to make comments and objections, note that the display hours are from Monday to Friday from 9am to 5pm. It is closed on Saturdays, Sundays and public holidays.

Views should be in writing and submitted to the Department of Railways director-general’s office before Dec 14.

For details call 03-2278 1222 or visit www.dor.gov.my.

By The Star

Building an iconic expo city

“It will be a truly integrated city attracting all types of people and nationalities that will have something to interest each one of them. The city will create a huge influx of tourists,” says Ch’ng.

Through much of this year, Malaysia Pacific Corp Bhd chief executive Datuk Bill Ch’ng’s business compass has been focused on the iconic Asia Pacific Trade & Expo City (APTEC) – the centre-piece of the company’s project in Iskandar Development.

Ch’ng wants to turn the RM1.6bil APTEC into Asia’s biggest trade and distribution hub with hotels, service apartments, office towers, retail malls, international entertainment city, factory outlets, Malaysia cultural heritage village, and other tourist attractions.

Ch’ng ... ‘I want to build it all at one go.’

“It will be a truly integrated city attracting all types of people and nationalities that will have something to interest each one of them. The city will create a huge influx of tourists,” says Ch’ng.

APTEC’s other unique component is LakeHill Resort City, a mixed-zone development comprising residential, commercial and tourism attractions.

This is located at Iskandar’s Eastgate Development Zone.

Once completed, both developments will have a combined gross developmental value of RM6.6bil.

“All the 22 parcels of land in the LakeHill Resort City, totalling 638 acres, are unencumbered. The 2008 valuation of the land is at RM450mil, but this will increase once the development starts,” says Ch’ng in an interview with StarBizWeek.

Some of the parcels of land, he points out, have been earmarked for joint venture (JV) purposes.

“Cash from these JVs will provide immediate profits to pay future dividends and cash for funding,” he says.

Interestingly, MP Corp is the only non government-linked company currently involved in the development of the massive Iskandar Regional Development Authority (IRDA).

The masterplan has already been approved and MP Corp has started on infrastructures and civil works and is seeking approval for each of the 22 parcels within the development.

MP Corp’s sole partner in the IDR projects – APTEC and LakeHill – is AmanahRaya Development Sdn Bhd, a subsidiary of AmanahRaya Bhd.

AmanahRaya, wholly owned by the Minister of Finance Inc, has a 22% interest in the joint venture.

Renowned architect

Ch’ng, 70, was the original architect who master-minded the proposed Genting Highland Casino Hill Resort between 1965 and 1972 which encompassed a ‘casino’ as an economic icon of the period to attract tourism and foreign exchange earnings.

He was also named one of the “50 Asia’s Top Corporate Takeover and Turnaround CEOs” by Business Weekly International magazine in 1989, for turning around the Emporium Group Singapore from bankruptcy and also Bousted-Co Singapore and Bousted PLC, United Kingdom from the doldrums.

He was appointed by tycoon Tan Sri Quek Leng Chan as an advisor and subsequently chief executive officer of MP Corp in 2005.

In December 2006, Ch’ng acquired a controlling stake of 60% in MP Corp through his Hong Kong-based private vehicle Top Lander Offshore Inc.

Ch’ng recalls that when he first took over the reins of the company “it was like taking over a sick baby”. Back then, MP Corp was developing low to medium cost houses in the area, now earmarked for the Iskandar development, which he put an immediate halt to. In place, he drew up a new masterplan which got the nod last year.

His mission now is to woo strategic investors – local and foreign – into the project.

By year end, MP Corp will launch its residential properties.

“Our office in Hong Kong is also coordinating and marketing APTEC and LakeHill in Hong Kong and China,” he enthuses.

Ch’ng sees huge potential in Iskandar-Singapore, as he sees strong similarities to Shenzen and Hong Kong economic success story.

“Iskandar-Singapore’s combined logistic, strategic and natural geographical advantage will be the epicentre of the Asia Pacific, Indian Continent and Middle East’s huge consumer market population,” he says.

Originally, the plan was to complete the whole development in 12-15 years but Ch’ng wants to fast track it to within 8 years.

“I want to build it all at one go. You cannot do it on a piecemeal basis. That always fails. You need something very unique and an icon to attract foreigners to come in. And APTEC will spur the imagination of foreign direct investments,” he says.

Ch’ng is now targeting Chinese exhibitors to take up 50% of its wholesale permanent exhibition centre comprising of 2.25 million nett exhibition space.

Meanwhile, initial construction will be financed by bank borrowings.

MP Corp is currently in discussions with some financial institutions to raise a term loan to undertake the project. MP Corp is also seeking a tax-incentive status similar to the ones obtained by Medini and Puteri Harbour in Nusajaya.

In the fourth quarter to June 2009, revenue grew 16% to RM2.73mil year-on-year; the company made a loss of RM915,000 from a profit of RM8.56mil in the previous year’s corresponding quarter.

For the full year, it made a net profit of RM54mil from RM57mil previously.

As at June, the company’s net asset value per share is RM1.55. The counter finished trading on Friday at 54.5 sen.

Two weeks ago, MP Corp proposed a two-renounceable-call rights issue of up to 129.448 million shares together with 129.448 million free detachable warrants.

The rights issue is at RM1 per share; the first call of 42 sen will be fully payable in cash by shareholders while the second call of 58 sen will be capitalised from the retained profits account.

The proposed rights issue is expected to raise gross proceeds of up to about RM54.37mil, of which RM30mil will be used to retire advances from Top Lander.

The proposed three-for-four rights issue is being undertaken on a minimum subscription basis to enable the company to raise funds without incurring interest costs.

MP Corp had determined a minimum subscription of 76.827 million rights shares and the company will obtain a letter of undertaking from its substantial shareholder, Top Lander Offshore Inc, to subscribe for all the rights shares.

The proposed rights issue is expected to be completed by the first quarter of 2010.

By The Star (by Tee Lin Say)

A new benchmark in PJ

Selangor Dredging’s Five Stones to set new standards in condominium living

Those looking to buy a condominium or service apartment around Petaling Jaya maybe hard pressed in the next several months ... or maybe not.

For those looking for something exclusive, property developer Selangor Dredging Bhd will be launching the last two blocks of its Five Stones project in the first quarter of next year. Prices begin from RM490 per sq ft, compared with RM450 per sq ft when the five-block project was first launched in August.

The first phase, which comprises a 38-storey block, a four-storey block and a 15-storey block, is today 90% sold. The entire project will have 377 units.

Teh Lip Kim ... ‘Residents will be able to enjoy the facilities and the park without having to leave the safety and security of the community.’

Its managing director Teh Lip Kim says the two blocks will have a total of 192 units with built-up of 2,000 sq ft in Block E (36-storey high) and 2,900 sq ft in Block D (25-storey).

Teh says the company will have a private launch before Chinese New Year next year, which falls in February.

The 25-storey villa block will differ slightly from the previous launch. It will have a lanai and a broad passage – what Teh calls a breezeway – between the entrance and the living area.

“The old traditional houses have very good cross ventilation and we are going to incorporate this. Besides these two extra features, in terms of design, the unit remains about the same,” she says.

She says Five Stones will be setting a new benchmark for condominiums in Petaling Jaya.

“Most of the developments come with a pool and some facilities. With Five Stones, there is a one-acre park, a pool, basketball and badminton courts. Residents will be able to enjoy the facilities and the park without having to leave the safety and security of the community,” she says.

The company is also offering a 10/90 scheme where buyers pay 10% and the stamp duty for the loan documentation subject to bank approval. Installment begins three years later for the remaining 90%. The interest has already been factored into the price of the unit. Those who are paying cash will have a 3% rebate, she says. When the project was first launched, its smallest unit, at 1,700sq ft, was sold for about RM800,000.

Selangor Dredging also developed Ameera, which is situated next to Five Stones. Ameera was launched three years ago at RM290 per sq ft. That project is now 100% sold, with the last unit going at RM410 per sq ft.

“SS2 is undervalued when compared with Mont’Kiara, Kuala Lumpur, and Bandar Utama in Petaling Jaya. SS2 is an established area and very central, like Mont’Kiara,” she says.

Chan Ai Cheng ... ‘The company (Selangor Dredging) is essentially targeting families, the owner-occupier market, which is why the built-up is pretty large.’

S.K. Brothers Realty (M) Sdn Bhd general manager Chan Ai Cheng says RM490 per sq ft seems a bit steep but for those who want the location and a project of that category, they do not have much of a choice.

Says Chan: “If you want something new and in that location, that is the only thing at the moment. There are the Ken I, II and III developments, with the best being Ken II. Developers are improving their offerings. The company (Selangor Dredging) is essentially targeting families, the owner-occupier market, which is why the built-up is pretty large. Their audience are those who are already in the Petaling Jaya, or specifically in a double-storey landed unit in SS2, and who now wants the security of such an environment,” she says.

The SS2 market is different from the Damansara Perdana market, which is predominantly a tenant market, she says. There is also no gated and guarded projects in SS2, which appeals to home buyers today, she says.

“The main thing is access. On that same road, there is Ameera, Five Stones, Ken III and Jasmine Towers. There will also be a mall development there with double-storey housing on the other side of the road. This means residents in that area will have to go through housing area to get to their destination if congestion builds up,” says Chan.

Another source from a real estate agency says it is difficult to talk about pricing because the project has not been built. “There is nothing to compare it with at the moment but it will be high-density for that location once it is completed,” he says.


The loft unit in The Tropics.

Besides Five Stones, other developments in that area include Casa Suites and The Tropics, both by Dijaya Corp Bhd. Casa Suites is already completed and a unit with a built-up of 675 sq ft is currently going for about RM330,000. There are units with built-up of nearly 700 sq ft and about 800 sq ft available. The larger units, however are priced close to RM400,000.

On a per square foot basis, this works out to more than RM450 per sq ft. When it was first launched, the units were priced at RM198,000 or RM280 per sq ft. Casa Suites is located in Damansara Intan, between Ken II and Tropicana Mall.

Alternatively, if buyers are not in a hurry, there is The Tropics, which is currently being constructed above Tropicana Mall. The project will be completed in the first quarter of next year. Like Casa Suites, the built-up of the units begin from about 600 sq ft.

Dijaya Corp will also be offering Casa Damansara 3 in the first quarter of next year. Casa Damansara 3 will comprise 200 units with a built-up of between 1,100 and 1,200 sq ft with three bedrooms. The project will be located behind Tropicana Mall. Prices have not been confirmed yet.

By The Star (by Thean Lee Cheng)

Need for higher quality public housing projects

Malaysia’s aspiration to join the ranks of high income economies should bring cheer to Malaysians as it means they can look forward to higher income and enjoy a higher standard of living.

Hopefully with the new economic model to raise the people’s income level, their higher consumption ability will be able to drive domestic consumption for a broad variety of products and services, and strengthen the economy further.

For the rural and urban poor, more proactive measures to help them own a home will be a good start. Despite the many housing packages offered by developers to promote sales and home ownership during the past year, the poor are still unable to fork out the minimum 5% or 10% downpayment for a property. These people depend on affordable public housing projects.

With growing urbanisation in many parts of Malaysia, there is a need to ensure that higher quality and better equipped public housing projects are built for the poor.

Although there are many low-cost and affordable housing projects, most of them have failed to provide an improved quality of life to the lower income population. This is because these no-frills projects have not been properly maintained and managed.

Perhaps we can emulate China and Hong Kong, which have initiated government-driven public housing projects to house their urban poor and displaced people.

As prices of properties have appreciated sharply in many first and second tier cities in China, local councils and private developers in Nanjing came together to address the issues of good property management and quality living for displaced villagers and squatters.

Each project is targeted for 5,000 homes in multi-storey blocks with each 5,000 home development equipped with a 24 classroom primary school and a 12 classroom kindergarten. There is also a service centre, a community day-care medical centre, a supermarket and some retail single-storey shop lots.

The utilities include an organic solid waste bio chemical disposal station, sewage recycling and waste water recycling system, solar energy heating system for all homes and centres, and photo voltaic cells for street lighting.

The entire concept was not only to solve the problem of providing affordable housing but to address the issue of post development property management.

The proposal was to fund the entire support system of the project with capital expenditure up front to reduce the long term management and maintenance cost.

Local councils previously were unhappy to manage designated low cost housing due to problems in collection of service charges and the resulting lack of services.

The urban planning model is based on self management by the residents.

The project does not allow vehicular traffic within the urban landscape but allows for courtyard style neighbourhoods with pedestrian and bicycle traffic only.

The project cost 2,232 yuan per sq metre based on the net residential area. The fund for the project was subsidised by the state government, a loan from the bank and part construction subsidy from the private contractor.

Last November, the Nanjing project was awarded the United Nations Special Contribution Award for Sustainable Urban Development by the United Nations.

It will be good for local industry players and governing authorities to emulate similar high quality standards to liven up our public housing projects.

Deputy news editor Angie Ng believes that thinking out of the box and being proactive will be the saving grace for many old existing problems in the world today.

By The Star (by Angie Ng)

Hybrid home deals catch on

For the time being, floating home loans will be more popular than fixed rate packages.

Home buyers may see the introduction of more hybrid packages by the banking sector to fit today’s economic climate despite the current low interest rates, said RHB Banking Group.

Its head of retail banking Renzo Viegas says customers should expect to see more hybrid packages as the economy turns for the better.

Viegas ... ‘Customers rarely opt for fixed rate for the entire tenure.’

“We expect to see more of these hybrid packages,” says Viegas. These packages combine fixed rate for a particular tenure which subsequently convert into a floating rate after the expiry of the fixed rate tenure.

“Customers rarely opt for fixed rate for the entire tenure. Another variation could be floating rate with a cap on maximum interest rate,” he said in an email interview last week.

But for the time being, floating home loans will continue to be more popular than fixed rate packages. Viegas says that just over 10% of RHB’s market size of RM13.1bil are under fixed rate pricing.

“Floating rate packages are more attractive than fixed rate home loans as the base lending rate (BLR)/overnight policy rate (OPR) outlook is flat. There are no signs of an increase in BLR/OPR in the near future,” he adds.

Last week, Australia’s central bank became the first among the Group of 20 nations to raise interest rates since the height of the global financial crisis. This was followed soon after by a statement from Bank Negara governor Tan Sri Dr Zeti Akhtar Aziz that Malaysia’s interest rates still need to support the country’s economic recovery.

The leaning towards floating rates underscores the current sentiment in the country – that interest rate will remain low.

Viegas says the average loan pricing in the market is 3.75% (BLR -1.8%) compared to fixed rate packages at 4.85% being offered by some insurance companies. As interest rate rise, fixed rates will tend to be more popular as they offer stability. However, the disadvantage is, customers will not be able to enjoy any savings through reduction in the interest rate when there is any reduction in the BLR/OPR, he said.

Viegas says the banking group will reduce installments immediately in order to pass the benefit to customer when there is a reduction in the BLR/OPR.

He says fixed rate packages are more suited for individuals who want to forecast their cash flows accurately as they may not be able to fork out additional installments if the interest rate increases, and among younger cutomers who want a longer loan tenure.

Floating rate packages are more suited for customers opting for a shorter loan tenure of less than 10 years since historically, BLR in the last 10 years or so has not shown significant movement.

Over at HSBC Bank Malaysia Bhd, general manager, personal financial services, Lim Eng Seong says the London-based bank has always made available both packages irrespective of the economic climate.


Lim Eng Seong says each option has its benefits.

“During the 97/98 Asian financial crisis, the BLR hit a peak of around 12%. Since then, the BLR has been on a downward trend. It is this trend that has contributed to the popularity of floating rates over the past decade,” he says.

He says each option has its benefits, depending on the needs of the individual customer. The bank offers a fixed rate option under its Amanah Home Financing-i series.

Lim says the biggest benefit of floating rate is that it is cheaper than fixed interest rates by at least 1%-2%.

“Even if the floating rate rises above the fixed rate, it is likely to be for a period of time only and not for the entire loan tenure. Furthermore, if the floating rate falls, you enjoy more savings.

“The main disadvantage of a floating rate is that your monthly instalment may fluctuate and thus affect the planning of your personal finances and budgeting.

“On the flipside, fixed rate loans offer certainty in that your EMI (equated monthly instalment) is fixed for the entire tenure of the loan and does not fluctuate, which makes budget planning easier,” he says.

Like RHB, HSBC’s floating rate options have been more popular although there have been request for fixed rate loans.

Lim says that in a declining interest rate environment, a floating rate loan makes better economic sense.

“In an increasing rate environment, fixing your rate may be a good option but bear in mind, fixed rates usually cost more than floating rates. Hence, it would only make economic sense if interest rates are likely to increase by more than the difference in costs between the fixed rate and floating rate, and if it is likely to stay that way for the majority of the loan tenure,” he says.

HSBC fixed rates begin from 6.85% for the entire tenure with no lock-in period and customer pay costs.

Its floating rates start from BLR - 1.75% for first five years. Thereafter, it is BLR - 2.10%, subject to a five-year lock-in period. Customers pay costs.

Citibank declined comment while Maybank did not return email.

By The Star (by Thean Lee Cheng)

Would you own 3 to 4 properties in your lifetime?

There was a recent Singapore news report about steps taken by the government to “cool” down the real estate market. There was concern that speculative fever might be heightened, especially when forecasts seem to indicate a more challenging and subdued economic environment.

How can the Singapore property market run up so significantly on the back of the worst global financial crisis in history?

Some attribute this to the liquidity available in the banking system, while others are quick to point to a low interest rate environment. It was also highlighted that many buyers were home upgraders who are cash-rich, and of course, some were speculators hoping to make a quick profit within a year or two. There are certainly many types of players in the real estate market, and it is not easy to fully comprehend the dynamics.

In a recent discussion that I had with some colleagues, an interesting trend surfaced – a person is likely to own about three to four properties in his or her life time! Mapping that to one’s life stages, it is easy to identify the four possible stages. Such life stages are similar to those used for investment planning as well.

The first stage is what I call the “carefree” period of one’s life. It describes a person who is fresh out of college and has probably worked for a few years. He or she would have little wealth, few assets or little liability, and generally a higher risk tolerance.

In the property dimension, this would be the first step towards independence, when one thinks of moving out of the family home or relocating for work. Many may start by renting a place, but in time, one might consider owning a small apartment, especially when the rental can somewhat offset part of the mortgage obligations. Typically, this person is in his or her 20s.

The second stage is what I call the “family” stage of life. In the 30s and perhaps no longer single, one would be looking forward to settling down. Not only is one more financially able now (assuming a few years of disciplined saving and investing and having paid the first mortgage), the family unit is also likely to benefit from double income. With that decision to get married and in time start a family, the considerations are now very different.

This would lead to property upgrades. The home that served them well in their singlehood will no longer be suitable. So one would typically plan for a bigger place like a landed property or a bigger apartment with more rooms. Just like investing, having built up some wealth and assets, this is the point where one can enlarge one’s investment portfolio while still taking high risks.

The third stage is what I call the “established” stage. Typically, it describes people in their 40s to early 50s who are established in their career. They may have a few school-going children.

Generally, this group would have built up a substantial wealth portfolio and a reasonably comprehensive insurance coverage. From an investing perspective, this group is likely to be more balanced. They are likely to be unwilling to take too many risks, but at the same time not too conservative as to keep everything in cash or low-risk products.

At this stage, a couple of scenarios are possible. One possibility is an upgrade from the matrimonial home to a bigger house in a better district, perhaps a semi-detached, a detached house, or an even larger apartment. Another possibility is that one becomes “sort of” a real estate investor.

Those with the means can end up buying residential properties or shoplots for investment, with the objective of renting out for additional income. Naturally, the sky is the limit, and people in this stage of life can own multiple properties or stay in one of them.

The fourth stage is what I call “Looking Forward to Retirement” and “Retirement” stage. As one approaches retirement or is retired, perspectives can change very significantly. His or her children may likely have completed their university education or have already started working. They may also have moved out of the home bought in one’s third stage of life. A significant retirement nest egg would have been established and liabilities are generally lower as mortgages are almost fully paid off, or the children do not need as much financial support.

One also tends to take a more conservative approach to investing and taking risks. Planning ahead can take on varied routes. One option is to stay on in the large house and enjoy the golden years; although its residents are probably only the old couple lamenting the quietness of the house, a maid and maybe a pet dog or cat.

The other is to move into a smaller home with more convenient amenities. I realise that some retired couples are choosing the latter option as living in a smaller condominium allows them to enjoy the facilities and relative safety and security. Invariably, they may hold on to investment properties where rental can be used for retirement cashflows or passed on as inheritance.

We all go through these four stages of life as reflected in the trend in property demand. While most of us do not build up sufficient wealth to be multiple properties owners concurrently, it is not difficult to appreciate and understand why we are likely to own between three to four properties during the course of our lives.

I believe that property ownership is an integral part of our lives and culture. And when it comes to personal finance, property ownership is a key element that I would like to focus on in the weeks to come. Perhaps some learned readers can also share their views with me, as I believe there are many qualified property experts out there.

Tay is senior vice-president and senior head of UOB’s personal financial services division.

By The Star (by Tay Han Chong)

Carcosa Sri Negara to be upgraded

The government has called for bids to upgrade Carcosa Seri Negara, a 97-year old boutique, city hotel and heritage building that was once home to Frank Swettenham, the highest ranked British representative to the Malay States.

It will be closed for renovation from January 1 2010. However, the property would will keep its name. Bids must be in by October 29 this year.

"We are inviting fresh ideas (for the property)," Nurulhakeem Hasim, the principal assistant secretary from the Property and Land Management Division of the Prime Minister's Department said in a briefing on Thursday.

The Request For Proposal (RFP) document highlighted that the proposer must bear all upgrading costs and pay a monthly rental.
The developer/operator must also propose a profit sharing deal with the government.

The government wants bids from candidates with strong financial standing, wide experience and recognition in hotel and resort management and one with a chain of hotels/resorts in Malaysia and abroad.

The applicant should own a hotel brand and have a proven administrative and management track record.

Some 17 people attended the briefing, including representatives from Swiss Garden, Impiana Group, Johor Corp, Peremba, Landmarks Bhd and MITC Ancasa Hotel Melaka.

Those present told the Business Times that they were surprised that advertisements only appeared in the Malay dailies last week.

They also lamented on the short time frame to prepare the proposal. Moreover, no financial details were given as to the past performance nor rental for the lease.

According to Nurulhakeem, renovations will be done in two phases. The first phase involves upgrading and developing the existing product while the second phase will be managing and operating the hotel.

The hotel, work on it that started in 1904, was completed in 1912. It is essentially divided into two, the seven-suite Carcosa and the six-suite Seri Negara. The two blocks sit on a 1.62ha site near Taman Tasik Perdana.

The Carcosa was originally the private residence of Frank Swettenham, the highest ranked British representative to the Malay States, while the Seri Negara was for his guests.

This designated heritage site is owned by the Government and was taken on a 20-year lease by Landmarks Bhd in 1989. This lease ends on December 31, 2009.

Landmarks operated the premises until five years ago, when General Hotel Management Group was brought in, in 2004, as a guardian for the heritage site.

Meanwhile, the period for which the hotel will be closed, will depend on the extent of work that was proposed.

The developer must propose the duration of the lease based on the return on investment anticipated after the upgrade.

An interested party said that since all the investment will come from the private sector, unlike previously when the government paid for all the renovation and refurbishment, the investment amount has to be practical.

Nurulhakeem indicated that certain terms on government's usage of the facility may be incorporated. It is however unclear, if the some 365 years of free nights available to the government will continue under the new contract.

By Business Times (by Vasantha Ganesan)