New lease of life for prime site in KL

A mixed development project has been proposed for the site located directly across The Renaissance Kuala Lumpur and next to the Sunway Tower.

The developer of an abandoned hotel project at the junction of Jalan Sultan Ismail and Jalan Ampang in Kuala Lumpur has submitted a new proposal for a mixed development project on the site, the city's mayor said.

The site, a prime piece of land located directly across The Renaissance Kuala Lumpur and next to the Sunway Tower (previously Wisma Denmark), was previously slated for the opening of the five-star The Grand Duta Hyatt hotel.

However, the project was stalled due to the 1998 Asian economic crisis.

Kuala Lumpur City Hall (DBKL) mayor Datuk Ahmad Fuad Ismail said it has received an application from the developer for a 52-storey mixed development project consisting of service apartments, offices and a hotel.
"We have approved (the project) over six months ago for service apartments, offices and a hotel," Ahmad Fuad told Business Times, adding that he does not know the current status of the construction.

"I have only seen the hoarding (in place) but no major work has been done there," he added.

He did not reveal the name of the developer who made the application.

A check at the site last Friday revealed that there was a project information signboard at the location, but no information was available to ascertain details of the project.

Kuala Lumpur Landmark Sdn Bhd, a subsidiary of Olympia Industries Bhd, was given the contract to develop the RM570 million The Grand Duta Hyatt in 1994. The project had then included residential and commercial components.

Mycom Bhd, the holding company of Olympia, then teamed up with Kuala Lumpur Landmark to develop a 52-storey building to house its headquarters and the hotel.

However, construction was halted in July 1998, when the group encountered financial difficulties during the economic crisis. The project was to recommence in 2003, but never did start.

The hotel was built up to the 29th level before it was stopped. Until today, it remains partly completed.

Tan Sri Yap Yong Seong, better known as Duta Yap, controlled Mycom, which is now called DutaLand Bhd. Yap is DutaLand's group managing director.

The Hyatt Group is no longer associated with the project.

By Business Times (by Vasantha Ganesan)

Sunway to buy 60% in Spanland

PETALING JAYA: Sunway Holdings Bhd, via wholly-owned unit SunwayMas Sdn Bhd, has signed a share sale agreement with Templer Forest Resort Sdn Bhd for the proposed acquisition of 60% equity interest in Spanland Sdn Bhd for RM13.8mil.

Yau Kok Seng (left) shaking hands with Datuk Kong Hon Kong after signing the agreement

The agreement was signed on Tuesday by Sunway managing director Yau Kok Seng and Templer Forest managing director Datuk Kong Hon Kong.

Spanland has the development rights for a 98-acre plot in Gombak opposite the Templer Park Country Club. The site has been proposed for a project comprising 163 bungalows with an estimated gross development value (GDV) of RM500mil.

The three-storey bungalows with built-up areas of around 6,500 sq ft have an indicative price of RM3mil.

Sunway managing director Yau Kok Seng said with the proposed acquisition, Sunway’s land bank would be increased to 390 acres with potential GDV of some RM2bil.

The project is expected to be launched by October.

He said that for the financial year ending Dec 31, Sunway was targeting a 50% growth in its property sales and property development would contribute close to 25% of Sunway’s earnings.

The construction division is the biggest contributor at 45%; while the manufacturing, trading and building materials division contributes 20%; and quarrying activities the balance.

“Property development has big potential and we are looking to replenish our land bank via acquisitions and strategic alliances locally and regionally,” said Yau.

Yau sees good potential in Singapore’s property market and is confident of good response to its latest condominium development there. To be launched by the middle of this year, the project will comprise 500 condominiums in eight 12-storey blocks. The 1,100 to 1,300 sq ft units will be priced at around S$1,000 per sq ft for a total GDV of more than S$450mil.

Sunway has launched and sold two public housing projects under the design-build-sell scheme totalling close to 2,000 units in Boon Keng and Toa Payoh. With built-up areas of 1,100 to 1,300 sq ft, the units were priced from S$520 to S$540 per sq ft.

“There is huge potential in Singapore’s medium range housing market and we will be looking for more opportunities there together with our 70% joint-venture partner, the Hoi Hup Group,” Yau said.

Sunway is also looking to launch its maiden project in China in the second quarter this year. The condominium project in Jiangying near Shanghai will have a GDV of close to RM500mil.

The 26:39:35 project between Sunway, Sunway City Bhd and Guanghou, will pave the way for more projects in China.

In the Klang Valley, a mixed development on 111 acres will be launched in Sungei Long. The project will have GDV of more than RM550mil.

By The Star

Genting’s Johor resort part of bigger plan

Justin Leong, head of strategic investments at Genting Bhd, speaks on the company’s proposals to build a theme park and hotel in Iskandar, a special economic development region in Johor.

The company, Asia’s largest publicly traded casino operator, is exploring the project through its plantation unit, Genting Plantations Bhd which is already working on a joint venture project to develop a high-end shopping complex in the state, which borders Singapore.

Leong made these comment in an e-mailed statement to Bloomberg News.

“The building of a theme park and hotel in Johor is part of a broader development plan that the Genting Group has for its operations in Iskandar Malaysia.

“The development plan will be subject to a detailed market feasibility study and is contingent to the successful development of the Johor Premium Outlets, the retail shopping project that the Genting Group is developing with US-based Simon Property Group Inc.”

By Bloomberg

Shedding the kampung image

KUALA TERENGGANU: Another batch of affordable apartments will be made available to local folks affected by the ongoing facelift of Ladang, an area considered a niche property zone in the Kuala Terengganu City Centre (KTCC) re-development scheme.

Mentri Besar Datuk Ahmad Said said the 192 apartments would be built adjacent to the Gemilang apartments that were nearing completion.

Construction of the new apartments started recently and is expected to be completed in 18 months.

The new medium-low-cost apartments are more spacious than regular apartments that have three bedrooms and two bathrooms and cater to those with big families.

“We decided to make the units bigger as those who visited the show apartment of the first project complained that the units were cramped,” Ahmad told The Star.

The second project will consist of 16-storey blocks similar to Gemilang.

Ahmad said the state planned to set up day-care centres at both projects to help working parents.

The 1,000 residents living in the area’s 70-year-old village houses will be relocated in stages from April. Some will move to the Gemilang apartments.

Each unit costs RM50,000 but relocated residents have to fork out only RM12,000 as the state has pledged a grant of RM38,000 to each household involved in the relocation.

Ahmad said the subsidy was given in the hope that they would purchase the apartments.

“The state is concerned about the welfare of locals affected by the relocation,” he said.

Kuala Terengganu hopes to shed the kampung-town image through its re-development into a modern city.

By The Star

Axis REIT plans new acquisitions

Axis Real Estate Investment Trust (REIT) plans to acquire another three to five properties in 2010 and raise RM113 million in the early part of the year.

Its target was expand the total assets to at least RM1 billion from RM907.7 million as at December last year, said Axis REIT Managers Bhd Chief Executive Officer Stewart LaBrooy.

Axis REIT Managers is the promoter of Axis REIT. LaBrooy said the potential acquisition targets included two units of brand new logistics warehouses in Johor, a factory or warehouse in Puchong and an office building in Cyberjaya.

The acquisitions will total RM180 million.
As at Dec 31, 2009, Axis REIT had 21 properties in Malaysia.

In a media briefing on Axis REIT's financial performance for last year and its future growth prospects, he said: "We are positive about our financial results this year despite the soft property market.

"Our strategy is to maintain occupancy rates and make new acquisitions."

He said the trust also planned another capital raising exercise in early 2010. "There is potential to place out another 61.4 million units and raise a war chest of RM113 million for future acquisitions," he disclosed.

LaBrooy said that among other developments for this year would be on its corporate property in Petaling Jaya called Quattro West which was formerly known as Nestle House.

"We are undergoing a complete refurbishment of the building to reposition the asset and increase revenue," he said.

He said Quattro West would be taken up by another listed company that had committed to a 15-year lease of 50 per cent of the space commencing July.

Another property that would provide unitholders with opportunities for capital gain was the proposed acquisition of two logistics warehouses in Seberang Perai, Penang which was expected to be completed by March.

The Seberang Perai warehouse acquisition at RM24.25 million, he said, was at a 9.2 per cent discount to market value and would provide unitholders with a cpaital gain of approximately RM1.78 million.

"The acquisition will increase gearing level from 34.03 per cent to 35.61 per cent," he added.

LaBrooy said 35 per cent would be the trigger point for gearing level and should it touch above this level, Axis REIT would a undertake private placement to bring it down.

Axis REIT's unit price, he pointed out, saw an improvement at the end of 2009 as compared to end of 2008. "It closed at RM1.93, a 72 per cent increase from the 2008 closing price," he added.

By Bernama

The Light to brighten IJM sales prospects

PROPERTY developer IJM Land Bhd remains optimistic over demand for its Penang projects this year, as it continues to unveil new offerings within its "The Light" waterfront project on the island.

"The fact that our site is protected from tsunamis is yet another advantage," said its managing director Datuk Soam Heng Choon.

Several parts of Malaysia, including the islands of Penang and Langkawi, were hit by tidal waves, resulting from of an earthquake near Sumatra, Indonesia, in December 2004.

Soam said iconic landmarks such as a digital hub, boutique hotel and a convention centre will set The Light apart from other waterfront developments on the island.

The Light, which is a RM5.5 billion mixed development project, is being carried out on reclaimed land north of the Penang Bridge.

Phase 1, which sprawls over 16ha, comprises residential units and is expected to take six years to complete.

One component of this phase, which will set IJM apart from its competitors, is the 19 units of seafront designer bungalows tagged at RM15 million each.

The units are due to be launched by the end of next year.

The second phase encompasses 41.2ha and will take 15 years to be developed.

The project's The Light Linear condominiums, which were soft-launched in July last year, saw non-Bumiputera units sold out within the day.

"As for The Light Point luxury condos, which are due to be completed by December next year, about 65 per cent of the units have been sold since its soft launch last month," said Soam.

The Light Linear units, which are priced between RM522,000 and RM730,000, have been snapped up mostly by local buyers, he added.

"We are planning for overseas roadshows in Beijing, Shanghai, the Middle East and Singapore this year, and these will (focus) mainly on the second phase of The Light where we plan to target potential investors and en-bloc buyers."

By Business Times (by Marina Emmanuel)

Genting plans Iskandar hub

The Johor hub is expected to help facilitate two-way visitor flow between its Resorts World Genting development in Pahang and its soon-to-open integrated Resorts World Sentosa.

Gaming group Genting plans to set up a hub in Iskandar Malaysia, Johor, that will feature a mall with premium outlets in the first phase and, later, hotels and a theme park, its chief said.

"Under (our leisure unit) Genting Malaysia Bhd, we are working on how we can invest in Iskandar in terms of creating a hub," Genting Bhd chairman and chief executive Tan Sri Lim Kok Thay told reporters after launching the group's 45th anniversary logo in Kuala Lumpur yesterday.

The hub in Johor is expected to be a mid-way point to help facilitate two-way visitor flow between its Resorts World Genting development in Pahang and its soon-to-open integrated resort in Singapore, Resorts World Sentosa.

The proposed project in Iskandar has been approved by both the state and federal governments, Lim said.
The mall, to be known as Chelsea Premium Outlet, will be operated jointly with US firm Simon Property Group and will be the anchor of the whole project. It is expected to open next year.

"If we can attract tens of millions of visitors to the outlet, then all the supporting facilities (like hotels and theme park) can be built and be profitable. We plan to build a whole resort experience around the anchor," Lim said.

Genting unit Genting Plantations Bhd has some 4,050ha in Kulai on which the group can expand, he said.

Genting Plantations last September formed an equal partnership with Simon Property, the US' largest mall operator, to establish the mall comprising designer brand discount outlets in Kulai.

Genting's initial share of investment in the project is small, at RM200 million, said Lim.

He said the group had already signed up some 60 outlets for the first phase of the mall, which is the first of its kind in this region.

Similar malls in Japan and South Korea, located outside of the city, have been very successful, Lim noted.

By Business Times (by Adeline Paul Raj)

Sunway unit to buy 60pc of Spanland

SUNWAY Holdings Bhd’s unit SunwayMas Sdn Bhd has entered into a deal to buy a 60 per cent stake in property firm Spanland Sdn Bhd from Templer Forest for RM13.8 million.

The deal outlines the joint venture (JV) of SunwayMas and Templer Forest to jointly undertake a RM500 million property development project on 98.43 acres in Rawang, Selangor.

SunwayMas will fund the proposed acquisition and proposed JV through bank borrowings and internally generated funds.

By Business Times

E&O piles on the luxury for Quayside condo project

The luxury condominium project in Penang will boast the region's first private waterpark within a gated community.

An international marina, premium water-taxi service, upscale food and retail outlets and commanding views of the Andaman Sea are among the attractions property developer E&O Property Development Bhd will offer potential buyers at its RM1.8 billion Quayside Seafront Resort Condominum development in Penang next month.

The company's general manager (sales and marketing) Lim Hooi Yen yesterday said the luxury condominium project - which is part of E&O's Seri Tanjung Pinang waterfront development - will also boast the region's first private waterpark within a gated community.

"Apart from marketing the project to well-travelled and well-heeled locals, we will also promote the units in markets like Singapore, Hong Kong, Medan, Jakarta, Surabaya, China, Australia, Japan and Korea," she told a media briefing at the project site in Penang.

The Quayside condominiums, which comprise seven blocks of seafront units, will be sprawled on a 8.4ha site, with 1.8ha of land dedicated to a signature waterpark and clubhouse.
Lim said the proposed project is expected to be completed in about seven to 10 years and about 60 per cent of the total 1,200 Quayside condominium units are expected to be sold to Malaysians.

On the Straits Quay retail marina, which is adjoining the Quayside Condominiums, Lim said the 4.96ha retail enclave will offer everything from boutiques to bistros, seaside cafes, bars and boat rides.

"Just like in Venice, Italy, we hope to introduce the E&O limo which will be a water limousine service," she added, saying that the com-pany has already identified a watercraft that is needed for the water-taxi service.

"We also plan to engage the fishermen in the area to work with us, by having local fishing boats bringing in the island's fresh catch of the day twice daily to a fishermen's pontoon which we plan to build."

Straits Quay and the marina are expected to open by the end of this year, she added.

By Business Times (by Marina Emmanuel)

CapitaLand pays US$2.2b for properties in China

HONG KONG/SINGAPORE: Orient Overseas (International) Ltd (OOIL) has sold US$2.2 billion (US$1 = RM3.34) in Chinese property to Singapore's CapitaLand as the loss-making Hong Kong company seeks to raise cash and focus on its core shipping business.

The sale of residential, hotel, and retail properties in China will generate a lump sum of cash for OOIL which posted a net loss in the first half of last year, badly hit by the global economic crisis.

CapitaLand, which raised US$1.8 billion from the listing of its CapitaMalls shopping malls unit in November, has been increasing its footprint in China.

"This proposed acquisition is timely and an excellent strategic fit for CapitaLand," Richard Hu, chairman of CapitaLand, said in a statement yesterday.
"It also fits into our stated goal of growing our assets size in China from the present 28 per cent of total assets to 45 per cent over the next five years as we remain very confident of the long-term future of the country."

The US$2.2 billion deal includes the portfolio value of the seven sites of about US$2 billion and cash within the business of about US$262 million, CapitaLand said.

The deal with CapitaLand, Southeast Asia's largest property developer, is expected to be completed by the end of the first quarter with the approval of OOIL shareholders, CapitaLand said.

Trading in shares of OOIL, a Hong Kong-based container ship operator, and CapitaLand, were suspended yesterday pending announcements, the companies said.

Last Friday, OOIL's stock ended at HK$5.15 (HK$100 = RM43.07), while CapitaLand shares closed at S$4.28 (S$1 = RM2.41).

OOIL posted a net loss of US$231.9 million in the first half of last year versus a net profit of US$158.3 million in the year earlier period. The loss came as the global economy was still suffering through the financial crisis, taking a major toll on shipping companies that rely heavily on trade.

OOIL, which is controlled by the family of former Hong Kong chief executive Tung Chee Hwa, made a US$5.1 million loss from its properties in the first six months of last year against a US$5.9 million gain a year earlier.

The company had 1.4 million sq m of total gross floor area under development at the end of 2008 with the focus on Chinese cities, including Shanghai, Beijing and Tianjin.

OOIL also holds a stake in Beijing Oriental Plaza, which comprises a retail mall, office towers, service apartments and a five-star hotel, and Wall Street Plaza, in New York City's financial district but those assets were not included in the deal.

By Reuters

Sunway to develop land near Templer Park

SUNWAY Holdings Bhd, through wholly-owned subsidiary SunwayMas Sdn Bhd, today entered into a share sale agreement with Templer Forest Resort Sdn Bhd for the proposed acquisition of a 60-per cent equity in Spanland Sdn Bhd for RM13.8 million cash.

Sunway told Bursa Malaysia that both parties also signed a shareholders agreement to jointly undertake a property development project on parcels of leasehold land measuring 98.43 acres in Rawang, Selangor.

The shareholders agreement will come into effect on the completion of the proposed acquisition.

"The land is strategically located opposite the Templer Park Country Club in the affluent area north of Kuala Lumpur.

"It is suitable for high-end development and is proposed for a property development project comprising low-density residential units of exclusive lifestyle bungalows which can be launched within 12 months from the completion date of the share sale agreement.

"This fits into the group's strategy of focusing on niche residential projects with fast turnaround," Sunway said.

By Bernama

Start investing in property this year: Portal

Confidence in the local property scene is high with strong purchasing intention at 85.3 per cent over the next 12 months, according to top property website, iProperty.com.

In its survey, the website said that 29.5 per cent of Malaysians were still looking for their first purchase and 36 per cent had owned at least two properties.

"Despite the 2009 economic downturn, Malaysians believe 2010 will be a good year to start investing again. Our survey shows that we will see a steady increase in property purchases," its executive chairman, Patrick Grove said in a statement in Kuala Lumpur, today.

As for preference, iProperty.com said landed properties, especially those completed remained the first choice at 53.5 per cent, followed by ready-made condominiums at 44 per cent.
It said 83.3 per cent agreed that location remained the most important criteria, followed closely by price at 73.7 per cent, while 48.6 per cent were aiming for potential capital appreciation with 35.5 per cent regarding the trust in developers and brands as a top concern too.

With the confidence that the property market would bottom out soon, iProperty.com said that 35.2 per cent of Malaysians with an annual household income of over RM300,000, would snap up properties.

It added that 83.7 per cent of them would go especially for properties at between RM300,000 and RM500,000 and for which prices were falling.

Bernama

Naim bids for RM150m village relocation job

KUCHING: Naim Holdings Bhd is bidding for a RM150mil project to relocate villagers from several Bidayuh villages affected by the Bengoh dam now under construction in Padawan near here.

Corporate affairs head Ricky Kho said the resettlement project in Sematang, Padawan, was expected to be implemented in two phases, which would involve 1,300 villagers from four settlements.

“We (Naim) are now constructing the Sematang-Skio Road that will link up to the proposed resettlement site,’’ he told StarBiz recently.

The RM70mil road project is funded by the Sarawak government.

Kho said the Bengoh dam project, which is to supply raw water to meet Kuching’s requirements up to 2030, was expected to be completed early next year.

He added that Naim was eyeing another road project – from Balingian in Mukah Division to Bintulu – estimated to be worth RM120mil, which would be located within the Sarawak Corridor of Renewable Energy (Score).

Naim is in the midst of constructing the RM188mil Jalan Selanggau-Matadeng road project, also within Score, which is due for completion in the first half of 2011.

The company has embarked on the RM140mil Kuching flood mitigation scheme (phase one).

According to Kho, Naim’s wholly-owned subsidiary, Naim Cendera Engineering Construction (Fiji) Ltd, has secured a road maintenance job worth RM38mil on Fiji’s main Viti Levu island.

Naim’s first contract in Fiji is now underway and it involves the upgrading of the 9.2km Kings Road, a RM65mil project funded by Asian Development Bank.

By The Star

MBSB wants to further tap east coast states

JOHOR BARU: Malaysia Building Society Bhd (MBSB) wants a deeper market penetration in the east cost states where demand for financial products is still largely untapped.

Chief executive officer Ahmad Zaini Othman said the company would focus on two main segments – personal financing and disbursement of loans to owners of Malay reserve land.

He said unlike in the west coast states, property development activities in Pahang, Kelantan and Terengganu were moving at a rather slower pace.

“These two segments in the three east coast states offer good growth prospects for us, especially for Islamic financing products,’’ Ahmad Zaini said recently.

From left: MBSB regional business representantive (southern region) Abdul Halim Zainal, Tan Sri Abdul Halim Ali and Ahmad Zaini Othman at the opening of the sales and service centre.

He was speaking at the opening of the MBSB Tebrau sales and service centre at Taman Mount Austin near here by company chairman Tan Sri Abdul Halim Ali.

The centre was relocated from Pasir Gudang where MBSB’s Masai outlet was opened in 2000. MBSB presently has 32 sales and service centres nationwide.

Ahmad Zaini said most of the Malay reserve land remained undeveloped as financial institutions were not keen to provide loans to the land owners due to the status of their land.

“We are willing to offer financial assistance to the land owners or we could look at jointly developing the land with them,’’ he added.

Ahmad Zaini said MBSB owned several pieces of land in the country with an estimated current market value of RM300mil and had no immediate plan to dispose of or develop them.

He said the company also planned to open a regional business representative office in the East Coast Economic Region (ECER) to better serve its customers and attract new ones.

It presently has four sales and service centres in the ECER – in Kuantan, Kemaman, Kuala Terengganu and Kota Baru.

Ahmad Zaini said the company would be targeting more civil servants as its potential customers and planned to introduce more products tailored to their financial capabilities.

“There are over 1.5 million civil servants in the country and the figure offers good growth potential for our personal finance business,’’ he said.

The personal finance division currently contributes about 30% of MBSB’s total business while the balance 70% comes from home mortgages.

By The Star (by Zazali Musa)

Sentosa resort won't affect Malaysia tourism

The opening of the Resorts World Sentosa, Singapore's first integrated resort, will not affect tourist arrivals in Malaysia.

"We will grow and will not be cannibalised because the pie will grow. More visitors will come especially if the economy recovers.

"So, the important thing is to make it a more complete experience," Genting Group Chairman Tan Sri Lim Kok Thay told reporters after the launch of the group's 45th anniversary logo in Kuala Lumpur today.

Genting Singapore PLC, a subsidiary of Genting Bhd, will open four hotels tomorrow under the first phase of the US$4.4 billion casino-resort in Singapore.
The Festive Hotel, Hard Rock Hotel Singapore, Hotel Michael and Crockford Tower will offer a total of 1,350 rooms and 10 restaurants.

They are expected to enjoy an occupancy rate of above 80 per cent.

Meanwhile, Singapore's first legal casino and Universal Studios theme park will open to the public as soon as the group obtains licences from the Singapore government.

"It(the resorts) is ready to open and we are now waiting for the licences (casino and theme park) to be issued. As soon as it issued, we will open," Lim said.

The Singapore casino is viewed as the group's key earnings drivers in the future.

"By end of next week, Universal Studios Singapore will open and when we officially launch Resorts World Sentosa later this year, it will be another significant and historical milestone achievement for the group," Lim said.

Under the second phase of the Resorts World Sentosa, Lim said another two projects, the Equarius Hotel and Spa Villas, would be completed by mid-2011.

He said Genting's involvement in a mixed development within Iskandar Malaysia comprised theme parks, hotels and premium outlets which would serve as a gateway for local visitors to Singapore and vice-versa.

The group teamed up with New York-listed Simon Property Group to venture into upscale outlet shopping in Iskandar Malaysia under the Chelsea Premium Outlet Centres concept.

Genting Plantations Bhd's unit, Azzon Ltd, signed a joint venture agreement last year with Simon''s Chelsea Malaysia LLC to establish the centres.

Under the partnership, Genting Plantations and Simon will form a 50:50 joint-venture called Genting Chelsea Sdn Bhd to invest and operate Premium Outlet Centres in Malaysia.

The Johor Premium Outlets, will be the first project to be built in Kulai, Johor, and is set to become the iconic flagship outlet centre in the Southeast Asian retail market.

Expected to open in 2011, the centre aims to synergise with Genting's existing property operations and the group's leisure and hospitality footprint in the region.

On Genting's Resorts World, the crown jewel within the group, Lim said the group expected its customer base to increase to 20 million visitors this year from last year's 19.5 million.

Resorts World Genting, a premier integrated family leisure and entertainment resort at the peak of Genting Highlands, will offer various events throughout the year in conjunction with the group's 45th anniversary.

The events were the group's way rewarding customers with rewards and giveaways which would include special discounts on hotel rooms, food and beverages, lucky draws, theme park packages, international shows and grand sales at retails outlets.

Bernama

Selangor wants to acquire AmFIRST land

AMFIRST Real Estate Investment Trust said the Selangor state government wants to compulsorily buy a piece of land in front of the The Summit Subang USJ for the light rail transit extension project.

The land, measuring 4,121 sq m, comprises 159 accessory parcels in the form of car park bays attached to two plots of land that are owned by AmFIRST REIT.

By Business Times

A time to learn and energise

The Malaysian Institute of Estate Agents (MIEA) has been organising its yearly Malaysian Annual Real Estate Convention for more than 10 years now, with its latest instalment in 2010 (popularly known as MAREC 10) scheduled on Jan 23 and 24 at the Putra World Trade Centre in Kuala Lumpur.

Estate agents and other property professionals throughout the country are expected to make a beeline for the convention over the weekend to learn, energise and perhaps reinvent themselves.

MAREC 10 promises to be a smashing success, if the number of participants registered so far is any measure. To date, a total of 400 people have signed up for MAREC 10 and the numbers continue to grow.

MIEA is also planning a welcome dinner on Jan 22, primarily for speakers, past presidents of MIEA and other VIPs. Delegates are also encouraged to attend this dinner, as the marketing opportunities are endless.

According to MAREC 10 convention chairman Loke Fu Fah, quite a number of those who have registered for the convention are negotiators. Negotiators are essentially sales and marketing staff who work under the direct supervision of registered estate agents.

MAREC 10, like the previous events, will have separate sessions for both estate agents and negotiators. Topics for both sessions have been carefully chosen and designed to deliver maximum value for money for both these groups.

When the idea of a separate session for negotiators was mooted several years ago, it was met with scepticism and reluctance. Estate agents felt that their negotiators might not be prepared to pay to attend these conventions. The organising committee, nevertheless, felt that it was about time MIEA played a role in the continuous evaluation of negotiators.

Thus, a separate session for negotiators was introduced two years ago at MAREC 08. According to MAREC 08 convention chairman Siva Shanker, the response was lukewarm at first but closer to the convention, more negotiators signed up.

“Soon, we were looking at more than 80 negotiators attending and we had to close registration then as seats were limited,” says Siva. “We never imagined that we would receive such response and we had only booked a small room for the negotiators session. As such, we couldn’t accommodate them at the last minute.”

For MAREC 10, MIEA is continuing the negotiators sessions on a bigger scale. The programme is being fine-tuned to be even better, with both estate agents and negotiators sharing sessions on the first day and attending separate sessions on the second day.

Successful brands
Among the topics to be presented for the estate agents session is “Discover Yourself And Your Estate Agency For Success”. The world is changing faster than businesses can keep up with while competition is heating up and this translates into demand for greater efficiency and better performance. Successful brands seem to be able to capture larger slices of the market whereas small players seem to find the marketplace a never-ending struggle. This paper analyses the effects of branding on creating a successful business and persona that will take you further in your industry.

To present this paper is John Lau, who is managing director of Hann Consulting Asia, which focuses on organisational diagnosis and organisational transformation.

Lau was trained in behavioural science with over 14 years of experience where his strengths have been capitalised in human capital assessment, recruitment strategies, leadership audit and organisational development.

He has headed the Human Capital Services Group of Deloitte Consulting Malaysia where business development, customer service transformation and performance enhancement form his core competencies.

Discipline
Meanwhile, for the negotiators session, an interesting topic being tackled is “Discipline And The Way Forward”. Discipline is the cornerstone of success and a crucial ingredient in achieving a successful business.

Discipline is what makes people wake up in the morning and drive themselves to the office. Discipline is what keeps them going, even when the odds are against them. Without willpower and discipline, most people will not amount to much.

To present this paper, the organisers have enlisted the help of veteran real estate agent Nixon Paul. Nixon is the director of Carey Real Estate and has more than 30 years of experience in the property industry. Over the years, he has single-handedly built Carey Real Estate into a formidable real estate firm.

Interested in attending the upcoming MAREC 10? Rates are given below.

The event is open to members of the public at RM800 per person.



Sign up now for the Malaysian Annual Real Estate Convention – MAREC 10.
For details, call MIEA. Tel: 03-79602577. Fax: 03- 79603757. E-mail secretariat@ miea.com.my. Website: www.miea. com.my

By The Star

SunCity plans RM800m office towers

Sunway City plans to inject the three office towers into its real estate investment trust

Sunway City Bhd (SunCity) will launch three office towers worth some RM800 million in Kuala Lumpur and within the Sunway Integrated Resort in Selangor.

The group plans to subsequently inject them into its real estate investment trust (REIT).

The property in Kuala Lumpur will be on Jalan Ampang next to the current Sunway Tower, formerly known as Wisma Denmark. This second tower, which will be 30 storeys high, will have 330,000 sq ft of nett lettable area with a value of RM230 million.

"Development plans are afoot and we will start physical work as soon as the plans are finalised," SunCity's managing director for property investment Ngeow Voon Yean said.
It is also planning two office developments with nett lettable space of 277,000 sq ft and 500,000 sq ft, valued at RM245 million and RM330 million respectively.

"These are in the advanced stage of design," he said.

Once ready, the offices will be leased as they are slated to be part of the proposed REIT.

Ngeow was speaking to reporters after the launch of Sunway Tower, a 27-storey building with 276,000 sq ft space.

SunCity bought the property for RM170 million and spent RM26 million on upgrading. The building, also said to be part of the planned REIT, saw rental rates improve 30-40 per cent to RM5.50 a sq ft. It is fully occupied compared with 40 per cent previously.

"With this inclusion, it has increased the commercial office net lettable area to about 600,000 sq ft and a total rental of about RM30 million a year to SunCity," Ngeow said.

By Business Times (by Vasantha Ganesan)

SunCity hopes to list property trust this year

SUNWAY City Bhd (SunCity) hopes to list its real estate investment trust (REIT) in Malaysia this year, the group founder Tan Sri Dr Jeffrey Cheah said.

"We are ready to go if the mar-ket is right for listing," he told Business Times at the launch of Sunway Tower in Kuala Lumpur yesterday.

Cheah said that the right mar-ket would be one that gives a yield of about 6 per cent, which is a more manageable level compared with about 8 to 8.5 per cent currently.

REIT yields rose last year as markets were hit, causing huge discounts to the net asset value (NAV).
When asked if it was certain that the listing would take place on Bursa Malaysia, Cheah said: "Everything points towards a listing in Malaysia."

"The timing (for a possible listing) this year looks more appropriate and we are working towards it," SunCity executive director Datuk Jeffrey Ng said.

It was reported that SunCity was looking at a RM3 billion to RM4 billion REIT which will include Sunway Pyramid Mall, Sunway Resort Hotel, Sunway Pyramid Tower Hotel and Sunway Medical Centre in Selangor as well as Sunway Carnival Mall in Penang.

The group first announced the REIT plan five years ago.

By Business Times

SunCity plans to inject assets into REIT

(From left): Kuala Lumpur mayor Datuk Ahmad Fuad Ismail signs his name while Tan Sri Jeffrey Cheah and Ngeow Voon Yean look on at the launch of Sunway City Bhd’s Sunway Tower.

KUALA LUMPUR: Sunway City Bhd (SunCity) may inject Sunway Towers at Jalan Ampang and Sunway Hotel Seberang Jaya in Penang into its RM4bil real estate investment trust (REIT), said managing director for property investment Ngeow Voon Yean.

Ngeow acknowledged that the group had been planning to float its property assets through a REIT for a number of years, but delayed it due to poor market conditions.

He added that SunCity was hopeful of listing its REIT this year.

“We’re seriously considering it (but) it all depends on timing. Once the window is open for an IPO (initial public offering), we’ll list. We hope to do it this year,” he told reporters after the launch of Sunway Tower yesterday.

Previous reports said SunCity intends to inject Sunway Pyramid Mall, Sunway Resort Hotel, Sunway Pyramid Hotel, Menara Sunway, Sunway University College and Monash University campus in Bandar Sunway, Sunway Carnival Mall in Penang and Tambun Hypermarket Perak into its REIT.

Sunway Tower comprises 27 levels of Grade-A office space with a net lettable area of 276,000 sq ft, eight levels of car park space and a freehold parcel of adjoining vacant land.

Formerly Wisma Denmark, the building was acquired by SunCity in 2007 for RM170mil. Ngeow said the group had spent RM26mil on refurbishments, which resulted in a 30% to 40% increase in rental rates to RM5.50 per sq ft.

Ngeow said the building was almost fully occupied, and the group would be constructing another tower next to it.

“The total net lettable area for both towers will be 600,000 sq ft. The new tower should be 27 to 30 storeys high and will cost RM300mil,” he said. The two will collectively be known as Sunway Towers.

Ngeow also said SunCity planned for the Sunway Integrated Resort two office developments of 277,000 sq ft and 550,000 sq ft with a value of RM245mil and RM330mil respectively.

On the outlook of the Grade-A office space within the Klang Valley, he said: “If it’s well positioned and well managed, there’s still a good demand both in the CBD (central business district) of the Golden Triangle and the suburbs. That’s why we’re confident of expanding in this sector.”

On the group’s joint venture project in Tianjin Eco-City, China, Sunway group chairman Tan Sri Jeffrey Cheah said the project was “proceeding as scheduled.”

The project, which would have a gross development value worth more than RM2.48bil, is a collaboration with Sino-Singapore Tianjin Eco-City Investment and Development Co Ltd (SSTEC).

SSTEC is a 50:50 joint venture between a Chinese consortium led by Tianjin TEDA Investment Holding Co Ltd and a Singapore consortium led by Keppel Group.

Meanwhile, Kuala Lumpur mayor Datuk Ahmad Fuad Ismail, who officiated the launch of Sunway Tower, said City Hall had yet to receive any application from Permodalan Nasional Bhd (PNB) or the Naza Group on their respective proposed 100-storey buildings.

“We only heard about this through the media. We’ve not received anything from either party,” he said.

In recent reports, PNB said it was looking at the possibility of developing a 100-storey skyscraper near the Stadium Merdeka/Stadium Negara area while the Naza group claimed it may develop a similar structure near the proposed Matrade Centre.

By The Star