L&G plans to launch RM1.5b projects this year

LAND & General Bhd (L&G) expects to launch two new projects in the Klang Valley this year, worth more than RM1.5 billion in total, as it is bullish about the property sector.

The first project, located off Jalan Ampang, Kuala Lumpur, is planned for a third-quarter launch. It will feature some 1,000 units of high-end studios, one- and two-bedroom condominiums, priced above RM500 per sq ft each, as well as lifestyle and retail components.



The project will have a gross development value of RM400 million and is targeted for completion by the fourth quarter of 2013, managing director Low Gay Teck said after its extraordinary general meeting yesterday in Bandar Sri Damansara, Selangor.

"We are positive on the project as it is a niche development. There are not many products of such nature being offered within the vicinity," he said.
The project is expected to yield an estimated gross profit of RM130 million.

Elite Forward Sdn Bhd (EFSB), a 50:50 joint venture between L&G's wholly-owned unit, Synergy Score Sdn Bhd, and Forward Splendour Sdn Bhd will develop it, using internal funds and loans.

Forward Splendour is a company related to Mayland Parkview Sdn Bhd, a major shareholder of L&G.

Shareholders yesterday approved EFSB's plan to buy the 1.04ha freehold land for the project from Sazean Holdings Sdn Bhd, a firm controlled by former minister Tan Sri Abdul Kadir Sheikh Fadzir, for RM55 million.

Low said the second project, which is awaiting approvals from relevant authorities, is a residential development in Bandar Sri Damansara.

L&G will launch it in four phases, starting at the end of this year. The first phase, worth RM450 million, will feature upmarket condominiums, Low added.

L&G expects to do well financially this year. For its fiscal year ended March 31 2009, it made a net profit of RM15.2 million on revenue of RM37.6 million.

The company also has an ongoing commercial project in Bandar Sri Damansara, called 8trium. L&G expects the project, worth RM160 million, to improve profits for the next three years.

L&G is also in an acquisition mode and looking for land in the Klang Valley to add to its portfolio.

By Business Times

L&G plans niche residential project in KL

KUALA LUMPUR: Land & General Bhd (L&G) plans to launch a niche residential project off Jalan Ampang here by year-end to cater for singles, couples and expatriates.

Managing director Low Gay Teck said the project had a gross development value of RM400mil and would comprise mainly of studio units and serviced apartments.

“There is strong pent-up demand for such properties in the area,” he told reporters after L&G’s EGM yesterday.

Low said the project was expected to be completed by late 2013 or early 2014. “It will consist of about 1,000 units and would sell for RM500 to RM600 per sq ft.”

He added that L&G was confident of a good take-up rate for the project as many properties in the vicinity were valued at RM800 per sq ft.

Low said L&G had proposed to acquire a piece of land in Ampang for RM55mil cash for the project, which is expected to be developed by Elite Forward Sdn Bhd.

Elite Forward is a 50:50 joint-venture between Synergy Score Sdn Bhd, a wholly-owned unit of L&G, and Forward Splendour Sdn Bhd, a company related to Mayland Parkview Sdn Bhd, which in turn is a major shareholder of L&G.

Low said the proposed purchase of the land in Ampang for RM55mil and the joint venture for the project were well received by the majority of L&G shareholders.

“They (shareholders) asked many questions about the two proposals at the EGM but were generally supportive of the proposals,” he said.

A shareholder, who declined to be named, said he wanted to know whether the land would be purchased at fair value and in the interest of shareholders.

“We are told that despite the proposals being a related party transaction, the land will be acquired at market price and will benefit all stakeholders, including shareholders. We will see,” he said.

According to Low, property will continue to be L&G’s core business, contributing over 50% of its revenue. Other divisions in the group include education.

On its financial performance, Low said the company was expected to perform fairly well in its current financial year ending March 31.

By The Star

Ampwalk owners said to be in talks to sell property

Ampwalk, a retail-cum-office building in Jalan Ampang, Kuala Lumpur, has been put up for sale for an estimated RM85 million, sources say.

Ampwalk, located next to The Nomad Sucasa All Suites Hotel, is owned by Permata Alasan Sdn Bhd, a 50-50 joint venture between IGB Corp Bhd and Wearne Brothers (Pte).

"The board of directors recently agreed to put the property up for sale and are in talks with interested parties," a source told Business Times.

The retail component, which Permata wholly owns, measures 65,000 sq ft, while the office component measures 70,000 sq ft. Some office space have been sold to individual owners.

"The retail portion is valued at RM650 per sq ft, while the office component is going for RM550 per sq ft," another source said.
IGB officials could not be reached for comment.

Ampwalk has been in operation since 1997 and was developed by a joint venture between IGB and Wearne. The entire building is said to be worth some RM120 million.

Industry sources said that the decision by IGB to sell is to recoup its investment and use it for future developments.

IGB operates the MidValley Mega Mall through a 75 per cent stake in Krisassets Holdings Bhd. It also owns the more recent The Gardens mall and also owns and manages several office buildings in Kuala Lumpur.

In 2008, IGB sold its 30 per cent stake in Gleneagles Hospital (Kuala Lumpur) Sdn Bhd, as part of its plan to divest non-strategic investments. It has also made known that it is keen to dispose of half of its interest in the 910-room Renaissance Hotel Kuala Lumpur.

By Business Times

Resorts Sentosa expects 13m visitors

RESORTS World Sentosa, the Genting Group's latest and largest family destination in Singapore, expects 13 million visitors in its first year of operations.

The resort, spanning over 49 hectares on Sentosa Island, is built at a cost S$6.45 billion, and is Genting Group's most expensive, most exquisite and ambitious project.

Schduled to open soon, Resorts World Sentosa will be home to Southeast Asia's first and only Universal Studios theme park, six luxury hotels, marine life park and a casino, among others.

The Festive Hotel, Hard Rock Hotel, Crockfords Tower and Hotel Michael opened to the public on Jan 20, 2010.
Visitors to Universal Studios alone are expected at 4.5 million per year, said Resorts World Sentosa Pte Ltd Assistant Director Communications Robin Goh to Malaysian reporters on a familiarisation trip to the resort recently.

The first weekend opening to the public saw the resort commanding more than 90 per cent hotel occupancy, mostly local guests.

Goh said the resort expected more foreign visitors when Universal Studios and the casino opens.

"Preparation work is almost done at Universal Studios and the park's operation team are gearing up for the opening.

"We have not got the casino licence yet and are working closely with the authorities to obtain all necessary licences.

"The date depends on certain factors as safety is our number one priority," said Goh.

As for Malaysian visitors, he said: "The Malaysian market is very important to us. After all, we are a Malaysian group and we want all Malaysians to be part of this (resort).

"We also want Malaysians to come and enjoy all the offerings, including Universal Studios, and be proud because this resort is built by a Malaysian company," he said.

For the convenience of prospective visitors from Malaysia, the resort has tied up with Malaysian travel agents who can facilitate their trip and offer them better rates.

"They (Malaysian travel agents) have different packages to offer which include transport (by air or bus), hotel accommodation and universal studio tickets.

"We also have a Malaysian bus programme which brings people from different states in Malaysia straight to Resorts World Sentosa," he said.

By Bernama

Hunza plans multi-billion ringgit township in Penang

A MINI township is set to take shape on the southwestern end of Penang island in three years, if Hunza Properties Bhd's (HBP) plan takes off.

The developer, which recently bought about 6.48ha land in Bayan Baru for RM82 million, is eyeing a multi-billion ringgit integrated development, which will serve as a mini city, executive chairman Datuk Khor Teng Tong said yesterday.



"We expect to complete the proposed acquisition latest by the end of our 2012 fiscal year and hope to get the project off the ground in that year," he told a media briefing in Penang announcing HBP's 2010 second quarter earnings.

The group's financial year ends on June 30.
Khor said HPB is currently looking to relocate an estimated 800 squatter households occupying the land in Bayan Baru.

"I am confident we can find a solution to the relocation issue," Khor said, add-ing that Hunza is well-versed with the issue through experience in previous projects.

The company is now looking for professionals like architects to develop the proposed mini city.

"We need the expertise of both local and foreign consultants," he added, saying that an international performing arts centre, residential high-rises and serviced apartments may be some of the features in the new development.

On the financial front, Khor said the gearing ratio of HPB is currently at a minimum level.

"The rights issue exercise currently being carried out will further strengthen our financial position.

"Added to this is the anticipated strong cash inflow from the current level of over RM200 million of unbilled sales," he said.

For the second quarter ended December 31 2009, the company recorded RM59.4 million in revenue and RM13 million in profit after tax. Revenue more than doubled while net profit surged 92 per cent from the same period in 2008.

By Business Times

Bukit Jalil project to boost Ho Hup revenue

HO HUP Construction Co Bhd aims to make at least RM300 million in annual revenue for the next 10 years, driven by developments at its 24ha land in Bukit Jalil, Kuala Lumpur.

The company is planning what is known as Jalil Green City, an integrated commercial and residential development that could be worth up to RM2.5 billion.

Its group managing director Lim Chin Choy said the original development plan has been revised.

Jalil City will now have six high-end residential towers, three Grade-A MSC-status office buildings, a 12-storey office block and a 1.5 million sq ft shopping mall.
The development will also comprise five-to-eight-storey shop offices as well as recreational and green facilities.

Jalil City is targeted to be an environment friendly and sustainable development. The buildings will incorporate green features.

Previously, the plan was to build conventional-type shop-offices housed in four- to eight-storey buildings, a hypermarket, a piazza, 2,000 units of condominiums and a Grade A office building.

"We want to make this the best development for Klang Valley. I will aim for three awards for the project for best integrated commercial development, best high-rise residential development and best shop-office development," Lim told Business Times in an interview in Kuala Lumpur recently.

Lim, formerly the chief executive officer (CEO) of property developer Magna Prima Bhd, took over Ho Hup on June 1 2009.

The company has been in the red since 2006. In the fiscal year ended December 31 2008, its net loss was RM56.2 million.

For the nine months to September 30 2009, it posted a net loss of RM23.8 million.

Lim has been spearheading Ho Hup's corporate restructuring to reduce debt, inject new capital and generate revenue.

By Business Times

MIDF Amanah upbeat on residential property market

The residential property market is expected to thrive this year as it rides on the surge in demand, particularly in the medium-high segment, says MIDF Amanah Investment Bank Bhd.

It said although new property launches in key cities like Kuala Lumpur, Johor Baru and Penang are less encouraging, the expected stronger economy this year should see the launch of previously delayed projects.

"Our survey with key developers shows that purchasing interest remained high with take-up rates of new projects at an average of 70 per cent just from private previews or first few days of the launch," MIDF Amanah said in its research note.

Despite signs of sectoral revival, it said the property sector still lacks foreign participation to drive its marketability.
More measures are needed to secure foreign participation, apart from the present tax incentives and MSC-status benefits.

The investment bank maintained its "neutral" call on the property sector as it expects property sales to undergo a minor correction when Bank Negara Malaysia begins to tighten monetary policy and foreign funds start withdrawing should the economic recovery lose its momentum.

"However, we believe local investors will cushion the downside as property buyers will seize any buying opportunity. We continue to favour counters with exposure to the mid- to -high-end residential market and industrial developments," it said.

MIDF Amanah said medium- and high-end properties benefit from an economic recovery as consumer purchasing power increases and participation in the small- and medium-scale property sector also increases from business expansion.

The residential sector remains a favourite for hedging purposes, it added.

By Bernama

i-City gets required licences from MCMC

DIGITAL city, i-City, has received the required licences from the Malaysian Communications and Multimedia Commission (MCMC) that would allow it to operate as a telco-neutral development.

The licences were presented to the developer of i-City by Deputy Minister of Information, Communication and Culture Senator Heng Seai Kie.

The Government established MCMC under the Ministry of Information, Communications and Culture to oversee the regulatory framework for the convergence of telecommunication, broadcasting and online activities, and therefore as the first networked development in the country, i-City naturally comes under the purview of MCMC.

"When i-City development plans were first presented to MCMC a few years ago, we were very supportive as we have a Malaysian developer that is leading the way to implement many of the ideas and concepts that MCMC were set up to regulate. I would like to congratulate i-City for what they have achieved," Heng said.

He commended i-City as a development that has provided the right infrastructure, facilities and services for digital storage and digital distribution, including in the plans to promote i-City as a tourism destination, working on digital lights and digital content.

i-City is a 28.8ha commercial development in Shah Alam where digital technology has been integrated into the fabric of the development, designating i-City as both a MSC Cybercentre as well as a tourism destination.

Under its charter as a MSC Malaysia Cybercentre, i-City needed to be a telco neutral zone. To implement this, it has invested in its own last mile infrastructure

The whole i-City hosts a large Cisco network with both high speed as well as redundant broadband.

By Business Times

Emville Golf Resort project to be revived

There is hope yet for those who bought bungalow lots at the abandoned Emville Golf Resort (EGR) in Dengkil more than 10 years ago as the Gema Padu Group, developers of Kota Warisan in Dengkil, would be reviving the project.

When EGR was first launched in 1998, the project located next to the Bukit Unggul Golf Resort in Dengkil, promised a refreshing treat for avid golfers as the course provided contrasting appeal from the first nine and the second nine holes.

The first nine or Pine Nine set within a garden concept and dotted with flower beds and pine trees and the second nine or Orchard Nine allowed golfers to experience a scenic route through the fairways with nine different types of fruit trees planted on either side.

Designed by Bobby Lim, Malaysia’s first golf professional, the course was poised to inspire seasoned golfers. However, buyers dreams for a resort-style life away from the city were shattered when the developers Emville Sdn Bhd abandoned the project as the company went into liquidation eight years ago.

Twelve years on, the more than 700 buyers of the project’s bungalow lots are feeling a little optimistic now as the Gema Padu Group has promised that the EGR is expected to be completed within three years.

The EGR is now in an abandoned state with overgrown lalang and almost bare hillslopes where some half-completed bungalow structures still stand.

The only part which has been preserved is the golf course and the clubhouse.

However, all this is expected to change with the signing of a Memorandum of Understanding (MOU) recently at the EGR between Gema Padu Group and Aman Golf School (AGS) which will see to the administration of the golf course.

The MOU was signed between AGS managing director Sharifah Mordiah Sayeed Alwie and Gema Padu Sdn Bhd director Lee Kuan Yong.

“The clubhouse is still standing and the golf course with its first nine would be rehabilitated and the whole area would be transformed into an exclusive area, all within the next three years,” said Lee.


For exclusivity: Lee explaning the rehabilitation programme for the Emville Golf Resort.

Sharifah, meanwhile, said that AGS is presently located at the Bukit Beruntung Golf and Country Resort and would be moving their business to EGR once the project is completed.

The AGS, registered with the Education Ministry, was established in 2002 to train young people with talent to become professional golfers.

“The AGS is equipped to facilitate the students’ training programme. We coach students to reach a certain benchmark of professional golfing,” said Sharifah.

In conjunction with the signing of the MOU, more than 120 golfers from both the private and government sectors and members of the media were invited for a friendly round of golf at the Bukit Unggul Golf and Country Resort.

By The Star

Online application for projects

KUALA LUMPUR: An online version of the Housing and Local Government’s One-Stop Centre (OSC) has been launched to allow for round-the-clock Internet submission of applications for development projects.

These would include applications for government projects and the build-then-sell projects, minister Datuk Seri Kong Cho Ha said.

Kong said the online system would allow people to submit their applications anytime at their own convenience without having to queue at the ministry’s counter.

“By introducing the OSC in 2007, we were able to reduce the processing time from two years to the current 120 days or less.

“With the online version of the system, we are taking it a step further and we hope it will also cut the processing time even shorter,” he told a press conference after launching the OSC online system here yesterday.

From April 2007 to Dec 31 last year, Kong said 91,163 such applications had been submitted to the OSC.

“Of all the applications, 59,665 or 65.4% have been approved while 7,172 or 7.9% are still under consideration, and 24,044 or 26.4% will either be cancelled, modified or rejected,” he said.

He added that the number of approved applications had also increased by 10.4% to 83.8% last year over 2008.

“Of the total 103 local councils in Peninsular Malaysia, 64 of them or 62% have managed to handle applications above the national average, which is 89.3%,” he said.

He revealed that 18 local councils had started using the OSC online system, which costs RM3.8mil, since last year. All other local councils were expected to use the system by this year.

“The implementation of OSC online is in line with the Government’s aim for all its agencies, including local councils, to use information and communication technology as a medium to deal with customers.

“This is also to ensure that the services provided are more efficient, convenient and cost-saving.”

By The Star

Four Seasons KL may rope in MidEast partner

A Middle Eastern consortium may become the partner for the RM2.5 billion Four Seasons Place Kuala Lumpur, which will occupy a site next to the Petronas Twin Towers.
Sources said the group is one of the largest investors in the Gulf region and it is now in talks with project developer Venus Assets Sdn Bhd.

The project has been delayed because of minor changes and the fact that Venus Assets has had a lot of suitors.

One source denied that the developer - owned by Tan Sri Syed Yusof Syed Nasir, the Sultan of Selangor and Ipoh-born tycoon Ong Beng Seng - was having financing problems and said that half a dozen prominent suitors had approached Venus Assets for tie-up talks.

"Venus Assets has one chance to get it right and wants no stone to be left unturned, and for it to be a perfect development that can enhance the Kuala Lumpur skyline and the property market," the source added.
In fact, the Gulf investors came into the picture after talks with state investment agency Khazanah Nasional Bhd ended.

It is believed that Khazanah had wanted 30 per cent ownership, a stake that would be worth about US$60 million (RM205 million).

Officials from Venus Assets could not be reached for comment.

Venus Assets is owned by Venus Pacific Sdn Bhd.

Venus Pacific is 30 per cent owned by ISY Equity Sdn Bhd, a company controlled by Syed Yusof and the Sultan, while the balance is held by Attesa Investment Ltd, which is controlled by Ong and partner.

Previously, it was speculated that the Kingdom Group, the vehicle of Saudi Arabian Prince Alwaleed bin Talal bin Abdulaziz Alsaud, was supposed to have taken a stake in Venus Assets.

However, that did not happen.

There was also talk that Venus Assets had spoken to KLCC Property Holdings to possibly build a twin towers development on a larger piece of land.

That, too, did not materialise.

Business Times reported in November last year that the completion of the hotel might be delayed as the developer was in the process of getting a new partner. Venus Assets was said to be undergoing an internal restructuring of its shareholding.

Minor changes to the 65-storey building - comprising a hotel, apartments and a retail area - were also said to be cause for delay.

Venus Assets bought the prime 1.05ha site for RM90 million in 2003 from the estate of the late Khoo Teck Puat, the former major shareholder of Standard Chartered plc.

By Business Times

Gamuda Land gets highest CONQUAS rating

PETALING JAYA: Gamuda Land Sdn Bhd’s quality drive has earned the company the highest rating in the Construction Quality Assessment System (CONQUAS) so far for landed residential and institutional buildings in Malaysia.

On Jan 25, the company’s Bandar Botanic Phase 18A and Phase 18B bungalows and Jade Hills Resort Club scored ratings of 86.9% and 80.6% respectively.

Managing director Chow Chee Wah (pic) said the achievement underscored Gamuda’s active drive to ensure high standards in all its projects. Assessments are marked over 100 points, so a higher score translates to better quality workmanship.

Chow said Gamuda was constantly raising its internal benchmarks to achieve higher workmanship standards and better quality buildings. “As a result, our scores have been steadily rising over the years,” he told StarBiz.

Chow said Gamuda Land was the first developer for landed property in the country to implement CONQUAS to build good quality residences and buildings. “There are very few developers willing to adopt the system because it incurs extra cost in construction and the process is very stringent,” he said.

Since implementing CONQUAS in Bandar Botanic in 2003, Gamuda Land has scored an average rating of 75.9%. “The quality assessment system has been extended to all the company’s townships to ensure a certain standard of workmanship across its products and to provide higher value to property buyers,” Chow added. At present, both Gamuda Land’s residential and institutional buildings are CONQUAS-assessed.

He said CONQUAS was a stringent quality assessment system that scored the structural, mechanical and electrical integrity in a newly completed building from foundation to roof.

“The implementation of CONQUAS not only improves the overall quality of the company’s products but also its construction building processes. This is because the assessment is divided into three main components – structural works, architectural works, and mechanical and electrical works.

“A CONQUAS-assessed property translates to superior quality standard which is an additional assurance by the developer to the purchaser,” Chow said.

Stressing the importance of “doing it right from the start”, Chow said having the right quality focus and mindset were mandatory.

“We observe a stringent pre-qualification of contractors to ensure only those that adopt the accepted quality practices will be shortlisted for contract tenders.

“The points they score will be used to decide the quantum of incentive payment that they will receive. This has lowered the incidences of defect liability from 0.3% of the total complaints received to 0.1%,” he said.

Implementing CONQUAS had saved Gamuda considerably in defect rectification operation costs during the defect liability period, according to Chow. “We have cut down at least 40% of our rectification works cost. This shows that if things are done right from the start (during construction), there is less to be expended on defect rectification works later,” he said.

By The Star

39,000 houses worth RM4.11b sold via Mapex

KOTA BAHARU, Feb 2 (Bernama) -- The Real Estate and Housing Developers Association (Rehda) Kelantan Branch sold 39,355 houses worth RM4.11 billion through the Malaysia Properties Expo (Mapex) held yearly over the past 10 years.

However, demand for houses dwindled of late due to global recession that impacted Malaysia's economy, said State Rehda chairman Sekarnor Che Omar.

"Demand has dropped by about 30 per cent though the overall property market is still stable," he told Bernama.

Last year, a total of 1,774 houses costing RM210 million were sold by Rehda members as compared with 2,044 units worth RM237.2 million in 2008 and 5,020 units in 2007 valued at RM448.4 million.
Sekarnor said housing developers' profit margin has been affected by spiralling prices of raw materials, particularly cement, steel and labour costs.

Established in 1999, Kelantan Rehda has 33 members comprising local housing development companies, including subsidiaries of State Economic Development Corporation - Binaraya PKINK Sdn Berhad and SPP Development Sdn Berhad.

Sekarnor hoped more houses would be sold during the four-day Mapex 2010 beginning Feb 12.

By Bernama

Ho Hup board confident of prevailing at meeting

The board of Ho Hup Construction Co Bhd, embroiled in a tussle with some of its substantial holders, say they could prevail at a shareholders' meeting on Thursday as they have made progress to turn around the company.

Financially strained Ho Hup has been struggling, having been served 23 winding-up petitions over a five-year period for failing to pay RM5.1 million. It has debts of RM110 million in addition to late delivery charges of RM23 million.

The board, led by Ho Hup deputy executive chairman Datuk Vincent Lye Ek Seang and group managing director Lim Ching Choy, has restructured loans and resolved problems with creditors and buyers.

According to Lim, Ho Hup expects to settle the payments with the respective parties in installments over the next two to three years.

"If we didn't do all these fast enough, Ho Hup would have been under water. We may not be here today," Lim told Business Times in an interview in Bukit Jalil, Kuala Lumpur, last week.
Ho Hup has built 225 houses in Jalil Sutera that were abandoned since 2006. Some 205 units have been handed over to buyers, Lim said.

It also launched last week 20 semi-detached homes in Jalil Sutera worth RM30 million. Almost all the units have been sold.

"The RM30 million will help us achieve our next target," Lim said, without elaborating.

Ho Hup has secured RM125 million in financing from Sabah Development Bank (SDB) for its RM2 billion integrated Jalil Green City project in Bukit Jalil.

"With the launch of Jalil City, we will be on a better financial footing. We will get the ball rolling for the project through the money secured. Following that, the project will be self-funded and we will be moving ahead with generating income," Lim said.

Ho Hup is also bidding for new building, construction and road infrastructure development projects in Peninsular Malaysia worth more than RM500 million to replenish its order book, Lim said.

"To me, Ho Hup needs to move forward. What we have done in the past nine months are the first steps to return the company to the black," Lim said.

Ho Hup former managing director Datuk Low Tuck Choy had called for the meeting to replace Lim and Lye as well as five other board members with six new directors.

Low claimed that the revamp plan submitted last October by the current board was not in the best interest of the company's minority shareholders.

"Shareholders should vote for a team that is working for them to enhance shareholders' value and manage the company professionally, to create a strong brand and raise market capitalisation.

"The vote for the right management is important for Ho Hup to move forward and get out of the Practice Note 17 (PN17) category," Lim said.

Lim said SDB, UOB, AmInvestment Bank and Maybank have indicated their support for Ho Hup under the current team.

Ho Hup has also been in the red since 2006. In fiscal 2008, its net loss was RM56.2 million. For the nine months to September 30 2009, it posted a net loss of RM23.8 million.

The 50-year-old company was declared a PN17 company in July 2008.

By Business Times

Green plans for IJM's The Light

Property developer IJM Land is putting about 5 per cent of the construction costs of the Penang waterfront project into green-related technologies

Property developer IJM Land Bhd's efforts in turning "The Light" waterfront project into Penang's first green development, will see the company putting about 5 per cent of its construction costs into green-related technologies.

Its managing director Datuk Soam Heng Choon said the company is fine-tuning basic design or passive design to cut its reliance on high-technology products for IJM Land's flagship waterfront development in Penang, which carries a development value of RM5.5 billion.

Among others, emphasis will be placed on tapping into natural lighting and cross-ventilation of buildings.

"Our first approach is to reduce materials usage for the project, rather than specifically source for recycled materials," he told Business Times.

Referring to the use of optic cables as an example, Soam said a single core of fibre optics would tremendously reduce a lot of copper cables and yet provide better quality of service to the occupants.

"However we are still sourcing for appropriate sustainable recycled materials for this project, where possible," he said.

Among the few green construction materials identified by IJM Land so far include recycled pavers and composite timber.

The Light, which serves as IJM Land's crown jewel, spans 60.8ha of reclaimed land along the eastern coastline of Penang island. The project stretches from the Penang Bridge to the city centre.

IJM Land is the property arm of IJM Corp Bhd, and is the result of a merger of IJM Properties Sdn Bhd and RB Land Holdings Bhd.

Phase one of The Light is a 16.8ha residential precinct which includes The Light Linear and The Light Point condominiums.

Both The Light Linear and Light Point will be built according to green standards.

Soam said IJM Land, which is working towards complying with Malaysia's Green Building Index (GBI) certification, said rainwater harvesting would be incorporated to reduce water consumption for landscape purposes.

"We also plan to provide a dedicated space for the recycling of household waste for all residents of The Light.

"Educational talks on recycling will be conducted regularly for residents and proceeds from the recycling programme can be donated to charitable organisations," he said.

Apart from using energy-saving lights and air-conditioners with built-in invertor technology in every unit in The Light, Soam said that a centralised vacumn system would be fitted in all units of The Light Point and The Light Collections to reduce the amount of airborne particles that might be reintroduced into the habitable space.

On the advantages of having these green-technology items installed in each unit, Soam said that the inverter air-conditioner, for instance, could help the user lower the power consumed by 60 per cent.

By Business Times (by Marina Emmanuel)

IJM project aims to rival other landmarks

IJM Land Bhd, which serves as the property arm of IJM Corp Bhd, was the result of merging IJM Properties Sdn Bhd with RB Land Holdings Bhd.

As part of its greening mission with "The Light" waterfront project, IJM Corp seeks to tap the indigenous environmental elements which have contributed to the Penang essence, or Penang air, which the locals and foreign visitors love, seek and enjoy.

For The Light project, new trees will be planted and ample greenery integrated to create green zones that will enhance a visit to the site.

The RM5.5 billion project, to be developed over the next 12 to 15 years, has been designed to rival landmarks such as Canary Wharf in London, the UK; Docklands in Melbourne, Australia; and Queens Quay in Toronto, Canada.
The developer has appointed six Malaysian architectural firms to design the residential components in the first phase. The project will be developed over three phases.

Among the eco-friendly initiatives that will reportedly be carried out by IJM in developing The Light is the harvesting of coral reefs in the waterways that will be built around the residential units.

Apart from ensuring a healthier marine life, the coral reefs will add aesthetic appeal to the development, notably at night, when they will be lit with a soft underwater glow.

The underwater glow, to be powered by wind generators, is expected to give residents a view of what is underwater from the balconies or windows of the units.

By Business Times

Bukit Kiara Properties makes foray into Ampang

KUALA LUMPUR: Bukit Kiara Properties Sdn Bhd (BKP) is moving beyond its home turf of Mont’Kiara to develop The Ambangan in the vicinity of Embassy Row in the U-Thant area of Ampang.

The exclusive freehold five-storey condominium project will have only 19 units and will be sited on slightly less than an acre in Persiaran Madge, according to BKP group managing director N. K. Tong.

Each unit will have a built-up area of about 3,000 sq ft. The area is home to several small boutique developments which have sprung up in the last 10 years.

Malaysian, South Korean and Singaporean developers had in the early part of the millennium converged on the U-Thant/Madge area because it was seen as offering an alternative to the Kuala Lumpur City Centre (KLCC) site.

Divided by Jalan Tun Razak, the U-Thant area’s land prices were trailing that of the KLCC area, and because the authorities had a height restriction for the U-Thant area, the financial outlay was also reduced without compromising on exclusivity.

Rental yields in the KLCC area have of late come under pressure, while those in the highly populated Mont’Kiara have dropped since the fall of Lehman Brothers in September 2008.

N. K. Tong is the son of “Condo King” Datuk Alan Tong of the Sunrise-Mont’Kiara fame.

It was Alan Tong who saw the potential of what was then known as Segambut and renamed it Mont’Kiara. That location turned out to be a hit. When Alan Tong subsequently left Sunrise, his son set up BKP in 2000 but remained on what was then his father’s home turf. BKP has three projects, all at Mont’Kiara.

It is currently selling Verve Suites, a four-tower development, of which two towers have been fully sold, while 85% of the third tower has been sold. The fourth tower will be launched in the second half of the year.

N.K. Tong’s foray into Ampang is significant in more ways than one. Sunrise Bhd, one of the first developers in Mont’Kiara, is also beginning to go beyond the area into the city centre and Bukit Jelutong, with a new strategy to offer multiple products in multiple locations.

By The Star

Puchong Gate seeks land and JV partners

KUALA LUMPUR: Puchong Gate Development Sdn Bhd, a relatively new player in the property scene, is actively looking for land or potential joint ventures with other developers for future projects.

Khoo Boo Tee…’ We’re new and we want to be another reputable company in this business.’

Executive director Khoo Boo Tee said the company was eyeing potential developments mainly within the Klang Valley.

“We’re looking for land and have identified some locations with good prospects. If the timing is right, we will acquire the land,” he told StarBiz in an interview. “We’re also considering tying up with other players. We’re new and we want to be another reputable company in this business.”

Khoo said Puchong Gate would focus on developing niche projects. “We’re not focusing on mass developments unless we have a large land-bank,” he said.

Puchong Gate is a unit of Newfields Group, an established financial advisory firm set up in 2002. In 2004, Newfields ventured into property development and launched its maiden project, Puchong Gateway, a 52-acre integrated commercial hub next to the Damansara-Puchong Highway in southern Puchong.

Khoo said the first phase, comprising 104 units of 2½ and three-storey shoplots, was completed and delivered six months ahead of schedule in April 2009.

Late last year saw the launch of the second phase, Gateway Square, which comprised 66 units of two, three, four and five-storey shoplots.

Khoo said about 70% of the units, priced from RM808,000 to RM2mil, had been taken up.

“The economy is picking up and people are still buying. It is a lot better than placing your money in the bank,” he said. “Interest rates are still low compared with a few years ago. Give another two months and it (phase two) should be fully taken up.”

Business operators that had taken up space in the first phase include a range of food and beverage outlets, furniture and car showrooms, petrol kiosk and offices.

Earthworks for the second phase have been completed and construction is expected to begin in mid-February.

Khoo said the third phase would primarily take the form of a residential scheme of 500 serviced apartments with some elements of retail to complement the commercial development.

“It depends on market demand but we hope to launch the third phase by early next year,” he said.

The group also has plans for residential and commercial projects in Bukit Serdang and Jalan Tun Razak respectively.

By The Star (by Eugene Mahalingam)

IOI Properties upbeat, plans new launches

Property developer IOI Properties Bhd expects sales to grow by 30 per cent for its current fiscal year ending June 30 2010, driven by the launch of two phases of its "16 Sierra" residential development.

"We expect to achieve sales of about RM850 million this year. However, that is only a conservative target," said its general manager of marketing and business development, Lee Yoke Har.

She said sales for the first seven months of the current fiscal year have already exceeded the company's previous year's sales of around RM650 million.

IOI Properties general manager Teh Chin Guan is optimistic of the general property outlook this year in line with the worldwide economic recovery.

The company has a slew of ongoing developments, namely in Bandar Puchong Jaya and Bandar Puteri Puchong, Selangor.
Both these township developments sprawl over 404ha, with Bandar Puchong Jaya already 80 per cent developed and Bandar Puteri Puchong on its last leg to completion.

Teh said IOI Properties has no plans to halt new launches.

On the drawing board are property developments next to IOI Resort, Putrajaya and plot of land within the Jalan Ampang embassy enclave in Kuala Lumpur.

The Putrajaya project is a mixed commercial development that includes office towers, shop houses and a shopping mall.

"We are doing some groundwork at the site now. We are relocating the existing golf course to make way for the development plan," Teh said.

The development which may be launched in 2 to 3 years spreads across 162ha and is expected to keep the company busy for about 15 years.

At the Jalan Ampang site, IOI Properties plan to build a "super condo" on a small plot of land.

"We are actually submitting the plans for the high-rise residential development. The launch time depends on the market conditions. There is no hurry to launch. I think we want to construct it first," added Lee.

Meanwhile, the 216ha 16 Sierra project with a gross development value (GDV) of RM2 billion is planned as a green township, offering 16 garden themes.

IOI Properties will launch Precinct 8, the first phase of 16 Sierra, today , which features 147 residential units starting from RM448,900 each.

It will also open bookings for the 104 units in the second phase of Precinct 8.

The total GDV of Precinct 8 is RM130 million.

By Business Times

Magna Prima to launch 5 projects in Klang Valley

PROPERTY developer Magna Prima Bhd will launch five projects, worth a combined RM1.2 billion, in the Klang Valley in the second half of the year.

Its chief executive officer Yoong Nim Chee expressed optimism of a pick-up in the property market and said the projects would be launched starting June or July.

They include the much-anticipated Magna Prima City, a RM400 million integrated development in Jalan Kuching, Kuala Lumpur, which will feature serviced apartments, retail mall and shop-offices.

"I believe the market is going to be stable. There is underlying strength in the market. We have people with money to spend. For us, it is going to be a very eventful year," Yoong told Business Times after the company's extraordinary general meeting in Batu Caves, Selangor, yesterday.
Magna Prima has formulated a five-year business plan, which will be assessed yearly.

"One of the strategies is to focus on high-value, low-residue developments and buy pockets of land, instead of huge landbank, so that holding cost is reduced. We want to sell everything we build for quick turnover," Yoong said.

Another project, costing RM100 million, will be developed in Section 16 in Shah Alam, Selangor. It will comprise a gated and guarded residential community of 300 terraced houses on about 7ha.

"This is a low-density development which we will launch in phases. We are going for terraced houses to maximise the land value," Yoong said.

Magna Prima is planning a similar residential project in Selayang, Selangor, which is expected to generate some RM250 million gross development value. It is buying 11ha for RM57 million for the project.

It also plans to launch a gated development in Bukit Jalil, Kuala Lumpur, of terraced and semi-detached houses, worth RM80 million. However, the project is pending completion of a sale and purchase agreement with Ho Hup Construction Sdn Bhd.

In Section 5 in Petaling Jaya, Selangor, Magna Prima will launch a lifestyle commercial project, valued at around RM300 million. There will be four- to five-storey shoplots, a boulevard and a neighbourhood mall.

The development, which may begin late this year or early next year, will take up about 3ha freehold land along Jalan Gasing, which the company bought for RM48.5 million.

"With all the projects lined up and the completion of existing ones, we hope to surpass our 2008 net profit and revenue this year," Yoong said.

In the nine months to September 30 2009, Magna Prima posted a net profit of RM6.4 million on revenue of RM179.3 million. In 2008, it made RM26.9 million net profit on RM280.6 million revenue.

By Business Times