IGB may spin off assets into 3 REITs

IGB Corp Bhd is mulling over spinning off its assets into three separate real estate investment trusts (REITs) comprising its retail, hotel and commercial components, its top executive said.

Group managing director Robert Tan Chung Meng said that should this plan take off, this could "potentially be the biggest REIT in Malaysia".

Currently, the planned REIT by the Sunway City Bhd at an estimated RM3 billion to RM4 billion is said to be the largest in Malaysia.

Should IGB's plans take off, it could also create history by being the first group to spin off three REITs.
Tan said that it was considering a REIT proposal given that the tax regime has become more favourable.

"Before, we were not too keen to do a REIT. Recently, they changed the tax rules ... now we are seriously contemplating it. We want to unlock the value," he told reporters at a press conference after KrisAssets Holdings Bhd's AGM.

"We prefer to be more focused," Tan said, adding that it could spin off three separate REITs for retail, hotel and commercial/ office space instead of putting several different components into a single REIT instrument.

"If we spin off all three, it's going to be huge," he said.

Tan said that timing of the REIT would depend on market conditions as Malaysia's REIT sector is still considered to be in its infancy.

IGB also owns several hotel properties, including the Cititel hotel chain, Micasa All Suites, The Gardens Hotel, The Boulevard Hotel and the Pangkor Island Beach Resort.

By Business Times

Sunway woos REIT cornerstone investors

KUALA LUMPUR: Malaysia's Sunway City may place out about a fifth of its planned initial public offering (IPO) of a real estate investment trust (REIT) to cornerstone investors who have greater holding power for the shares, sources with direct knowledge of the deal said.

The country's sixth biggest property company by market value is in talks with seven local funds in the hopes of getting some of them to become cornerstone investors in the IPO which is expected to raise around $500 million, the sources said.

The Sunway REIT, with a fund size of 2.78 billion units, is set to become Malaysia's largest when it is listed in the third quarter of this year.

Sunway's planned REIT offering has received positive response from investors so far due to its size, steady income source and good growth prospects, a source said.

“This is something significant that investors would not want to miss. The interest is definitely there, the question is pricing,” said the source.

The Sunway REIT will feature some 1.65 billion units for public subscription, of which 1.5 billion are for institutional and selected investors, the company said earlier this month.

“They are talking to seven funds, which consist of insurance funds, unit trust funds, governmentlinked investment companies, and a few pension funds,” said a second source.

Sunway is looking to place out about one fifth of the offering to cornerstone investors, one of the sources said.

Cornerstone investors normally commit to buy shares before a public listing and promise to hold them until a later date.

Sunway City declined to comment.

The issue price of the Sunway REIT will be determined in a bookbuilding process.

Earlier this month, Sunway City said it would receive RM2.7bil ringgit in cash and about 1.0 billion units in the REIT for the eight properties it will inject into the unit.

The properties, comprise of shopping malls, office towers, and hotels, have a combined market value of about RM3.7bil.

Sunway City Group, controlled by businessman Tan Sri Jeffery Cheah, will own about 38% of Sunway REIT after the listing, which the company said might be completed in mid-July.

By Reuters

Iskandar allots 200ha for wellness township

SINGAPORE: Iskandar Malaysia will parcel out about 200 hectares (500 acres) of land for the proposed joint iconic wellness township project between Malaysia and Singapore.

Malaysia’s Khazanah Nasional Bhd and Singapore’s Temasek Holding Ltd will form a 50-50 joint venture company to undertake the development of the project with the participation of private sectors from both countries.

This was announced by Prime Minister Datuk Seri Najib Tun Razak after meeting Singapore Prime Minister Lee Hsien Loong during a leaders’ retreat at Shangri-La Hotel here today.

Today’s announcement is the latest tangible development after the idea for the project was mooted during Najib’s official visit to Singapore following his appointment as prime minister early last year.
In their joint press conference, both Najib and Lee reiterated their support for the “live work play” wellness township concept proposed by the Joint Ministerial Committee on Iskandar Malaysia (JMC) which would offer holistic wellness services and facilities.

Both leaders hoped to launch the project within a year.
The township will be designed to be vibrant, culturally distinctive, yet socially harmonious and environmentally friendly.

A unique feature of the project will be the encapsulation of “wellness” within activities throughout the township, alongside the integration of traditional healing methods, complementary alternative medicine and modern treatments.

By Bernama

Talam hopes to get out of PN17

PETALING JAYA: Talam Corp Bhd is hopeful of getting out of the Practice Note 17 (PN17) list if auditors give it a clean bill of health.

Bursa Malaysia has requested for more information after the company made a submission to be uplifted from the PN17 list on April 30.

Talam and its adviser, RHB Investment Bank Bhd, are still collating the necessary documents. This will include the audited accounts for financial year ended Jan 31, 2010, which is expected to be out this week.

The company, which has been on the PN17 list since Sept 1, 2006, has taken longer than expected to exit from the troubled companies list because of prolonged negotiations on assets disposal. It plans to dispose land and buildings to pay off its outstanding loans.

Once the country’s largest builder of low- and low-medium cost houses, Talam slipped into the PN17 list after its auditors failed to provide an opinion on its results for financial year ended Jan 31, 2006. The company had also defaulted on term loans and bond obligations.

Its debt restructuring exercise involves three parts – a capital reduction and a share split, the issuance of new convertible instruments to address certain defaulted debts, and a proposed asset divestment programme.

As at Jan 31, 2009, Talam’s debts stood at some RM666.57mil, of which 78%, or RM522.46mil, are sukuk, Al Bai’ Bithaman Ajil Islamic debt securities and bridging loans.

Talam has about 2,400 ha of landbank, which is mostly located in Selangor. It is understood that the company plans to dispose about 1,214 ha, which is about half of its total landbank. The largest tract of land to be disposed would be the company’s Bandar Bukit Beruntung development.

To date, Talam has divested more than RM800mil of its properties, mainly land, including about RM670mil that was committed to be sold to Menteri Besar Selangor Inc to settle debts totalling RM392mil. The balance would be used to repay debts due to financial institutions.

Most of the debts stemmed from joint ventures on land belonging to state agencies, such as subsidiaries of Kumpulan Hartanah Selangor Bhd, Permodalan Negeri Selangor Bhd and Pendidikan YS Sdn Bhd.

Talam partially completed its debt restructuring in July last year and returned to the black in financial year ended Jan 31, 2009.

Even if the company settles all its debts and is uplifted from PN17 status, it still has to redeem its image following stalled projects that have caused many house buyers to be disgruntled.

The company has 8,000 properties in various stages of completion and has roped in IJM Construction Sdn Bhd as the principal contractor for its stalled projects.

The projects are Kinrara Section 3, Ukay Perdana, Lagoon Perdana, Putra Perdana, Lestari Puchong, Saujana Puchong, Saujana Putra, Lestari Permasi and Jalil Heights.

A Talam official said 5,000 units would be handed over with vacant possession to the buyers in the next two months. IJM has completed the Taman Puncak Jalil project with over 3,000 houses delivered. While IJM does not have a direct stake in Talam, it owns 25% of Kumpulan Europlus Bhd (KEuro), which in turn has a 24% stake in Talam.

A KEuro spokesman said the company intends to retain majority interest in Talam eventhough KEuro had pared down its stake in Talam from more than 40% about a year ago.

Talam’s management plans to turn around the company and move on with its project development plans. It is targeting to achieve at least 90% completion rate this year for its stalled projects.

It will concentrate on its joint-venture projects such as Sierra Ukay, Sierra Selayang and Ukay Perdana, as well as disposing its converted industrial and commercial land. These projects have a combined gross development value of more than RM1.4bil.

By The Star

Robust outlook for Sungai Besi

Sungai Besi is well connected and easily accessible via numerous highways

Sungai Besi is looking to be the next property development “hotspot” for local developers, and to a certain extent, foreign investors, according to industry players and experts.

According to YTL Land & Development Bhd project director Safian Ibrahim, the Sungai Besi area holds much potential as the next “new thriving address” in Kuala Lumpur due to its strategic location.

He notes that it is very well connected and easily accessible via numerous highways as well as railways.

“What this means is that Sungai Besi has already answered three of the main criteria of homeowners - location, location, location. The only other question that remains is what type of property they can invest in and its subsequent potential returns.

“More people are realising how much the area has to offer and we expect its future to be exceptionally bright,” Safian says.


Ho Wen Yan ... 'Sungai Besi will become a hotspot, akin to a golden triangle.'

Hua Yang Bhd chief operating officer Ho Wen Yan also believes the area is rapidly developing into an ideal location for property development.

“We foresee that within five years, Sungai Besi will become a hotspot, akin to a golden triangle location with its multiple accessibility channels and convenient public amenities. Because of escalating property prices, Sungai Besi and Seri Kembangan are becoming suitable locations, as it is well connected via major highways,” he says.

Property developer Hua Yang will be launching its One South mixed development project in Sungai Besi this year. The RM750mil project features residential, commercial and retail components.

The development will be carried out in five phases. The first phase will consist of retail outlets and offices. Phases two, three and four will consist of serviced apartments while the fifth phase will consist of offices.

For its One South development, Ho says the company is targeting small and medium-scale enterprises and office tenants that were looking to upgrade to a newer working environment and lifestyle.

He also says the company has been looking for a suitable piece of land to develop in the past three years and has identified Sungai Besi as a suitable location.

Ho says more people are choosing to live outside the KL city and Petaling Jaya area due to escalating property prices and congestion, making Sungai Besi and Seri Kembangan ideal.

“To make property purchases more accessible, more developments choices need to be given to the surrounding and existing residents in that area, as they look to upgrade their lifestyle.

“Waiting for the Government to upgrade infrastructure such as roads and public transport may take time and private sector-led projects (need to) strive to provide what the market needs.

Safian meanwhile says the biggest challenge in developing projects in Sungai Besi is to find a way to bring value to the area while meeting the needs of homeowners.”

YTL Land has been present there since 2005, when it launched its Lake Fields project, a joint venture with Employees Provident Fund, comprising a 70ha residential development that fronts a 6ha lake.

“The project was initially earmarked for high-rise condominiums, but from our market research, we noticed that the majority of homes in the area were already made up of condominiums like in Desa Petaling and Seri Kembangan, and matured neighbourhoods like Kuchai Lama and OUG.

“So we decided to fill this gap in the market with landed homes set in a modern, landscaped environment. Coupled with the advantages of having a strategic location, public transportation and surrounding amenities, we decided that the concept for Lake Fields is all about spacious, convenient, modern living.

According to Safian, the first phase of homes, Meadows & Glades, which was launched in February 2005, was a tremendous success.

“All 514 units of the three-storey link homes were snapped up overnight demonstrating homeowners' need for spacious homes,” he says.

The development of the Sg Besi Royal Malaysian Air Force (RMAF) air base is another positive factor.

The Government is redeveloping that 162ha into an integrated commercial hub.

Association of Valuers, Property Managers, Estate Agents and Property Consultants in the Private Sector Malaysia president James Wong believes this would present an opportunity for property development in that location.

“The Government has the avenue to make Sungai Besi a destination for property investment,” he says.


Richard Chan says he is hopeful it will be developed with an environmental emphasis.

Malaysian Association for Shopping and Highrise Complex Management advisor Richard Chan is hopeful that the area will be developed with an environmental emphasis.

“There is simply a lack of green within the Klang Valley area. It's so congested and concrete-looking, it doesn't look nice!” He says part of the land could be turned into a recreational or fruit park.

“We have good weather with an abundance of sunshine and rain. Fruit trees will thrive, so why not?”

Ho believes the re-development of RMAF base will be the catalyst for the growth of the southern part of the Klang Valley.

“A commercial centre is ideal as the site is surrounded by mature residential areas such as Cheras, Bukit Jalil, Serdang and Seri Kembangan. Furthermore, all the major infrastructure is in place, such as highways and public transport.

“There will be a definite spillover effect. We expect aggressive growth in that area,” he says.

Safian believes it would raise the profile of Sungai Besi significantly.

“Sungai Besi has been under the radar of property investors, when in fact, it has so much to offer as the next future address of the city.”

By The Star

Need to be wary of brewing asset bubble

These days a mere few months will make a lot of difference and this is obvious even in the property market.

The stronger economic rebound in the region is once again threatening asset bubbles in various Asian cities.

One of the obvious reasons for the jump in residential property prices is the big movement of people around the globe these days. Foreigners are making up a big group of the buyers in major Asian cities from Shanghai to Singapore.

It will be just a matter of time before the trend catches up in the other cities, including Kuala Lumpur.

Penang's popularity as the choice for foreign participants of Malaysia, My Second Home programme is already seeing a big jump in foreign buying interest in its property market.

The high savings rate among Asians and their yearn for property as an investment asset is also another factor.

The under-performing equity markets and low bank savings rates are also not providing people with spare cash to invest with other better viable choice.

To the layman, creeping property prices mean more expensive homes and higher costs of living. The lower-income group will be the most hard hit by fly-away property prices.

To curb overheating, China and Singapore have already imposed higher downpayment requirements for mortgages.

There is a high correlation between property prices and liquidity, and to avoid excess liquidity in the system, their governments have no choice but to tighten credit lending and raise interest rates.

These measures will also aid in stabilising inflation.

China has recently raised downpayment for first-time homebuyers to 30% (from 20% previously), while second-home borrowers have to pay a 50% downpayment. To curb speculative activities, it has also re-imposed the 5.5% transaction tax for properties held for less than five years.

Malaysia also has to be wary of the possibility of an asset bubble brewing although the Government had also acted by imposing a 5% real properties gains tax.

Given the strong surge in property demand in the last six months or so, this has not acted as a big deterrent to curb buying and selling activities.

As developers are still continuing with their housing packages and allowing low downpayment of between 5% and 10%, entry cost is still very low for property buyers.

Moreover, they will only have to start servicing their loan only upon vacant possession of the property.

While those who have built up a comfortable portfolio of property assets will benefit from the value appreciation of their assets, many Malaysians are finding it hard to buy reasonably-priced landed property these days.

Kuala Lumpur and Klang Valley folks are certainly among those feeling the pinch.

Penangites have also seen one of the more pronounced property price increases as land on the island is really getting scarce and the number of landed housing projects is getting fewer.

New condominiums there are averaging RM600 to RM700 per sq ft, semi-detached houses and even terraced houses with some land are priced at more than RM1mil while bungalows are from RM3.5mil to RM4mil.

No wonder many island folks have no choice but to opt for medium-cost apartments.

The liberalisation of the local property market has opened up a bigger catchment customer base and created more opportunities for industry players.

In the process, there have been many new developments and project launches that are mostly targeted at the high-end market.

There are fewer affordably-priced properties unless one is prepared to travel as they are mostly located in places further away from the city centres.

To assist those who find private housing way beyond their means, the Government should work towards a holistic and concerted plan to appoint a dedicated agency to undertake the overall planning on the actual need for affordable public housing in the country and have them built in easily-accessible places.

The Singapore model, where all the public housing projects with good community facilities are within a stone's throw from the mass rail transit stations, is a sure winner.

It will overcome the problem faced in the country where many low-cost housing projects are not occupied because they are located in very far-away places that do not have convenient public transport link.

Deputy news editor Angie Ng believes all Malaysians deserve to live in secure, well planned and managed housing estates, whether they are private or public housing.

By The Star

Attractive investments on display at expo

Property hunters and investors can expect another round of exciting properties to be showcased at the upcoming iProperty.com EXPO at the Mid Valley Exhibition Centre until tomorrow.

Organised by iProperty.com Malaysia, the exhibition brings together the hottest local and international properties from India, the Pacific Islands, Bali, the UK and more.

Some 50,000 home buyers and property agents are expected to visit the three-day exhibition that also features property seminars by renowned industry experts.

Whether one is looking for properties in the heart of the city, by the sea or amidst lush greenery, the expo has it all.

Over 100 property developments across Penang, Ipoh, Seremban, Johor and Klang Valley by well known developers such as Gamuda, SP Setia, Mah Sing Group, Mutiara Good Year, Mayland Group, MK Land Group, Dijaya, AP Land and many more will be on display.


Also in the lineup are top developers from Penang like Ivory Properties and Belleview Group while famed UEM Land will be showcasing properties in Johor.

Experts Michael Tan, Juanita Chin, Dr Peter Yee and Milan Doshi are among the speakers who will be presenting talks during the expo.

There will also be topics catering to real estate agents. Tips on selling to investors, closing sales and personal real estate success stories are guaranteed to catch the attention of rookies and veteran agents alike.

“The expo is the perfect opportunity for property hunters to view the latest properties in the market,” iProperty.com Malaysia country manager Ken Tsurumaru said.

The next expo will be held from July 30 to Aug 1 at the Kuala Lumpur Convention Centre (KLCC) and Oct 23 to 24 at Marina Bay Sands in Singapore.

By The Star

AR-REIT in early talks to buy 3 or 4 properties

The manager of AmanahRaya Real Estate Investment Trust (AR-REIT), which plans to increase its asset size to RM1.5 billion within the next two years, is in early talks to buy three to four commercial properties.

The properties, which comprise office buildings and shopping centres, are mainly in the Klang Valley.

"Talks (with the vendor) are at a very preliminary stage. We're hoping to complete the purchase by the middle of next year," said Adenan Md Yusof, chief operating officer of AmanahRaya-Reit Managers Sdn Bhd (ARRM).

AR-REIT has an asset size of about RM1 billion, making it the country's second largest property trust after Starhill REIT.
The property trust yesterday agreed to lease a warehouse complex in Port Klang to Kontena Nasional Bhd, the national container haulier and logistics services provider, for nine years.

The lease will contribute an annual rental of RM2.15 million for the first three years, which is about 3.5 per cent of the total income received by AR-REIT.

"There will be a five per cent step-up rental (after the first three years)," Adenan told reporters after the signing ceremony.

The warehouse is one of the 15 properties managed by ARRM and one of the five industrial properties in the AR-REIT portfolio.

"Kontena has now increased its storage capacity and expanded its services without having to raise funds for construction of new facilities," Kontena's chief executive officer Hood Osman said.

It plans to designate the complex as Kontena Nasional Distribution Centre 11, housing 12 units of single-storey warehouses, offices, cold room and open yard facilities.

Kontena will continue to offer tenancy to the existing tenants at the warehouse complex in the hope that it will also be able to provide to them its logistics services.

The tenants there now include Gudang Damansara, Ikano, Rafsanjan Pistachio Producers, Milawa and Taskar Shipping & Forwarding.

By Business Times

Mah Sing wins at 2010 Cityscape Asia Real Estate Awards

Southbay City, Penang

Mah Sing Group Berhad (Mah Sing) won the prestigious award for Best Developer – Waterfront Development (Future) for its Southbay project in Penang Island at the 2010 Cityscape Asia Real Estate Awards Ceremony in Singapore on May 18.

Southbay is an iconic township located at Batu Maung, Penang Island. The elite township development comprises residential homes and serviced residences, retail and commercial strips, recreational and tourism attractions, hotels and malls, and world-class lifestyle entertainment, shopping and dining districts. The first phase of Southbay City has more than 1,500 registrants thus far.

Mah Sing Group managing director Tan Sri Leong Hoy Kum said, “We are very pleased with this award as it recognises the Group’s firm commitment to excellence. This award marks the Group’s seventh award for the year - the Group was named the Best Brand in the Property Category in The Brand Laureate 2009-2010 Awards; our projects in Klang Valley and Penang Island won four awards at the Asia Pacific International Property Awards 2010; and our plastics division had garnered the 8th Asia Pacific International Honesty Enterprise – Keris Award 2009.

“It is indeed an honour to be recognised for what we do but more importantly it is testament to the talent and passion of our entire organisation, which is committed to delivering innovative concepts, high quality and exceptional service. These awards have not only given us the recognition but also the boost for us to perform better.”

The Cityscape Awards for Real Estate in Asia recognises and rewards excellence and outstanding performance in architecture and design for projects in the region.

By The Star

AmanahRaya-REIT to grow assets to RM1.5b

AmanahRaya-REIT Managers Sdn Bhd is to grow the asset size of the real estate investment trust (REIT) to RM1.5 billion in the next two years, from RM1.002 billion, at present.

The total assets puts AmanahRaya-REIT in second place after Starhill REIT, said Chairman Tan Sri Ahmad Fuzi Abdul Razak.

Meanwhile, the company has embarked on an acquisition trail of commercial properties.

"We are currently in preliminary negotiations to acquire 3 to 4 assets, mainly office buildings and shopping centres," AmanahRaya's Chief Operating Officer Adenan Md Yusof said after a leasing signing ceremony with Kontena Nasional Bhd today.
He said AmanahREITS, which has been accored a global investable grade rating of "BBB-", hoped to conclude some deals by mid-2011.

"AmanahRaya REITS will continue to scout for properties in good locations in order to give the best returns to unit holders," he said.

By Bernama

KEuro seeks to retain majority interest in Talam

PETALING JAYA: Kumpulan Europlus Bhd's (KEuro) recent selldown of a 5.21% stake in Talam Corp Bhd, which reduced its holding in Talam to about 24%, is to raise fund to pay for financial instruments issued by Talam that KEuro has bought from Abrar Discounts Bhd (Abrar).

At an EGM on Nov 4 last year, KEuro shareholders approved the proposed acquisition from Abrar of financial instruments issued by Talam with total par/nominal value of RM423.35mil for a total purchase price of RM125mil.

A KEuro spokesperson said the company was expected to fully settle to Abrar the outstanding sum by this year. “Once we managed to achieve that, we expect the group's shareholding in Talam to creep back to above 30%.

“We have the intention to retain our majority interest in Talam because we see potential in the company when it assumes its business as a township developer in the Klang Valley,” he told StarBiz yesterday.

Talam has been classified under Practice Note 17 (PN17) on Sept 1, 2006, after its auditors failed to provide an opinion on its results for its financial year ended Jan 31, 2006. The company had also defaulted on term loans and bond obligations.

The developer partially completed its debt restructuring in July last year. The exercise was effectively divided into three parts - a capital reduction and a share split, the issuance of new convertible instruments to address certain defaulted debts, and a proposed asset divestment programme.

As at Jan 31, 2009, Talam's debts stood at some RM666.57mil, of which 78% or RM522.46mil are sukuk, Al Bai' Bithaman Ajil Islamic debt securities and bridging loans.

Its proposed regularisation plan has been delayed by prolonged negotiations on assets disposal.

A Talam official said due to the great effort by the management, the company had divested more than RM800mil of its properties, mainly land, including about RM670mil that was committed to be sold to Menteri Besar Selangor Inc to settle its total debts of RM392mil. The balance will be used to repay debts due to financial institutions.

On April 30, Talam made a submission to Bursa Malaysia to have it uplifted from PN17 and Bursa had requested for further furnishing of documents. Talam and its adviser, RHB Investment Bank Bhd, are collating the necessary documents as requested by Bursa and expect this to be done by early June.

The official said once the documents were in place, the company was hopeful of getting Bursa's approval soon. “There are plans to turn around Talam and allow the company to start on a clean slate to move on with its project development plans.”

He said the company's audited results were expected to be announced next week.

By the Star

Mah Sing wins award for its Southbay project

PENANG: MAH SING GROUP BHD bagged an award as best developer in the future waterfront development for its Southbay project in Penang Island at the 2010 Cityscape Asia Real Estate Awards Ceremony in Singapore on Tuesday, May 18.

The first phase of the billion-ringgit township development has been opened for registration with more than 1,500 registrants thus far, said the company in a statement on Thursday.

Southbay is located at Batu Maung, Penang Island. The development comprises residential, commercial and tourist attractions, with shopping and dining districts.

Group managing director Tan Sri Leong Hoy Kum said Mah Sing was pleased with the award, which was its seventh for the year.

Cityscape is the world's largest business-to-business real estate event brand. Mah Sing has 16 years of experience in property development, with 26 residential, commercial and industrial projects under its belt.

By The EDGE Malaysia

Kurnia Setia plans RM2b township

PAHANG-BASED oil palm plantation group Kurnia Setia Bhd (KSB) plans to invest up to RM2 billion over the next 15 years to develop an integrated township called Kota Sri Ahmad Shah (KotaSAS) in Kuantan, Pahang.

The group's maiden venture into property development will be via its property arm, KotaSAS Sdn Bhd.

KSB director Tengku Datuk Zubir Tengku Datuk Ubaidillah said the group was following in the footsteps of other plantation companies like IOI and Sime Darby, which have expanded into property development by developing their former plantation land into townships and housing estates.

"We are always looking for opportunities, although our plantation land are mainly located in remote areas. But if the areas surrounding the land have potential for property development like that of KotaSAS, we will do so," Zubir said.
Nevertheless, plantation of oil palm will remain its core business. KSB has some 14,000ha of oil palm plantations in Pahang.

"We will continue to look for other opportunities, but for now we will concentrate on developing KotaSAS since it is a big project covering a huge tract of land.

"We plan to build 10,000 units of residential and commercial units and the development will be carried out in several phases spanning 15 years," said Zubir, who also serves as KotaSAS executive director.

The proposed township is strategically located near Istana Abdul Aziz and is accessible via the East Coast Highway and the Kuantan-Kemaman bypass. It features residential, commercial, institutional and recreational components.

In line with its aim of creating a signature township with a premier location, Zubir said it will be divided into four precints with wide roads, pavements, and plenty of landscape, green open space and buffer zones.

The project will also be a low density development, with six units per acre compared with the average housing density of between 12 and 16 units per acre.

Amenities include a recreational lake, park, five schools, a public field and facitilies for polo and horse riding and go-cart activities, which will be opened to the public. The township will also have patrols by security guards.

Prices of units will be between RM200,000 and RM400,000. The first phase covering 98ha for 320 units of bungalows, semi-detached and linked houses is expected to be completed by early 2012.

A sales carnival will be held on May 28 and 29 2010 at the site.

By Business Times

Faber eyes RM1b revenue from overseas this year

INTEGRATED facilities management (IFM) and property developer Faber Group Bhd hopes its revenue from overseas will reach RM1 billion this year, by expanding on its non-concession income base.

The group will continue to focus on its businesses in the UAE and India to expand its non-concession income base, especially in the areas of bio-medical engineering services and facilities engineering services.

Managing director Adnan Mohammad said Faber has recently managed to secure a second contract extension for maintenance of low-cost houses in Abu Dhabi. The first year of the contract is valued at RM62 million. It has also bid for a similar tender in Abu Dhabi. In India it has bid for a RM10 million-a-year contract to service seven Fortis Hospitals.

"We have set a KPI (key performance index) of between 12 per cent and 15 per cent increase in revenue this year, pushed by both IFM and property development activities," he said after the group's annual general meeting in Kuala Lumpur yesterday.
In the financial year ended December 31 2009, Faber recorded a 21.8 per cent rise in revenue to RM805.3 million. Of this, 85 per cent was from IFM and 15 per cent from property development. Its net profit last year was RM106 million.

With a cash flow of about RM300 million in hand, the group is looking to widen its landbank and explore opportunities for potential mergers and acquisitions to expand its IFM business.

Faber plans to launch three property projects this year, with a total value of RM500 million. The residential developments are all located in the Klang Valley. It has a total landbank of 15.39ha, valued at RM850 million.

On the home front, its wholly-owned subsidiary Faber Medi-Serve Sdn Bhd has submitted a proposal to the Ministry of Health to renew its existing 15-year government concession to provide hospital support service.

The current concession covers 79 government hospitals in Malaysia located in Perak, Penang, Kedah, Perlis, Sabah and Sarawak and will expire in October 2011.

Commenting on the possible merger between Faber Medi-Serve and Pantai Holdings Bhd's Pantai Medivest Sdn Bhd, Adnan said: "If the option is there, we will look into it."

By Business Times

CL Integrated takes on high-end job

Property developer CL Integrated Resources Sdn Bhd plans to launch by next year a high-end gated residential project worth RM500 million in Seksyen U10 in Shah Alam, Selangor.

Its founder and executive director Chu Bak Teck said the 50-acre development will comprise 400 units of hillside bungalows, semidetached houses and villas, priced from RM1 million.

Chu said CL Integrated has submitted the layout plans and is awaiting the authority's approval.

"If all goes well, we hope to start construction by mid-2011 and launch the project six months later," he told Business Times in an interview.

CL Integrated is owned by four individuals, who have more than 10 years of experience each in real estate development.

The other three directors are managing director Kenneth Lim, John Lam Joo Onn and chairman Datuk Pua Kim An.

The company's existing project is 1 Sentul Condominium in Kuala Lumpur, which is being developed in a 50:50 joint venture with Zalam Builder Sdn Bhd.

Some 95 per cent of the 284 units, each priced from RM317,800 to RM903,800, have been sold. The project is expected to be completed by early next year.

CL Integrated's latest development is PJ21 on 2 acres of freehold land in SS3, Petaling Jaya, comprising 21 blocks of four and six storey shop offices.

This is a joint development with low-profile Jalur Rimbun group of companies.

Chu said 80 per cent of the blocks were taken up less than two months after the soft launch.

Buyers were mainly local businessmen buying for their own use and for investment.

He expects the remaining blocks to be sold by July.

The four-storey blocks are priced from RM2.88 million each, which the six-storey is selling at more than RM5.95 million per unit.

"This is evidence that the property market is improving. We are optimistic on the outlook and are looking for more land to buy," Chu said.

Chu said construction on PJ21 is expected to start next month and the project will be completed by December next year.

By Business Times (by Sharen Kaur)

Iskandar to offer RM1b worth of contracts

Iskandar Investment Bhd, which oversees a special development zone in Malaysia’s southern state of Johor, will offer RM1 billion worth of contracts for retail outlets, hotels and office space by the end of this year, an executive said.

Financing will come “substantially” from equity from partners Chief Executive Officer Arlida Ariff said in an interview today. The rest would be through bank borrowings, she said.

Malaysia’s government launched the Iskandar development in November 2006 with the hope of attracting 382 billion ringgit of investment into the area in two decades.

State-controlled Iskandar Investment will tender out another six packages of contracts worth 250 million by the end of this month for the construction of schools, a stadium and initial administrative buildings for a Legoland theme park, Arlida said.

Iskandar Investment has seen a “marked increase” in interest from foreign investors from Southeast Asia as the global economy recovers, Arlida said. In particular, there was been growing interest out of neighboring Singapore, she said.

“For the balance of this year, we will be going out quite aggressively into the region, focusing mainly on Asia,” said Arlida. “We will be travelling to China, South Korea and possibly Indonesia in the next three months” to attract investors and speak to people who’ve shown interest in the past, she said.

By Bloomberg

Many developers yet to go green

Many developers have yet to seriously consider the potential of sustainable development via the use of green technologies, a senior minister said.

Housing and Local Government Minister Datuk Seri Kong Cho Ha, however, noted that several industry players had taken up the green challenge.

"Several of the industry's players are well on their way to creating the first batch of sustainable development in the country," Kong said.

He spoke to reporters after opening "The Green Solutions for Property Development 2010" conference in Kuala Lumpur yesterday.

It was organised by the Eastern Regional Organisation for Planning and Human Settlement (EAROPH Malaysia) and the Real Estate and Housing Developers' Association Malaysia (Rehda).
Kong said developers had yet to come to terms with balancing their bottomline with the incremental costs that comes with developing a green project.

To promote the use of green technologies in buildings, the ministry is reviewing the Uniform Building By-Laws.

"Some green technologies will be considered from the practical aspects to be incorporated into it in order to create a more sustainable living environment for homeowners, their families and the community at large," he said.

Kong said 2009 was a watershed year for green in Malaysia, with the introduction of various initiatives and incentives.

This included the launch in May the Green Building Index (GBI), an accreditation program with specific rating tools to encourage green building development.

The GBI rating tool is seen as a major undertaking as it seeks a good energy-efficient design, indoor environmental quality, site planning and management, materials, resources, water efficiency and innovation.

By Business Times

Bolton gets RM195m loan for expansion

Property developer Bolton Bhd has signed a RM195 million syndicated banking facility with three banks to fund its expansion plan over the next three to five years.

The lenders -- Affin Investment Bank Bhd, Affin Bank Bhd and OCBC Bank (Malaysia) Bhd, have committed to provide RM170 million of term loan facility and RM25 million of revolving credit facility.

Bolton executive chairman, Datuk Azman Yahya, said the funds would help in the acquisition of strategic land bank, part finance its development cost and finance the working capital requirements of the group.

Currently, the group's gearing ratio is still low at 0.58 times even with the full utilisation of the facility, he said in a statement here today.
Azman said in line with its plan to replenish their land bank, half of the approved facility will be use to acquire land, particularly in the Klang Valley and Penang.

Bolton will be launching three new luxury condominium projects in the Klang Valley and a mixed commercial development project in Puchong by end of this year with a total gross development value of more than RM1 billion.

By Bernama

RM11mil in sales at property fair

The recently concluded state-level Malaysia Property Expo (MAPEX) organised by the Seremban chapter of the Real Estate and Housing Developers’ Association (Rehda) netted RM11mil in sales over the three-day fair.

Some 20 developers showcased 1,432 properties including single and double-storey terraces, semi-Ds, shop-offices and bungalow lots during the expo held at the Seremban Parade Shopping Centre.

The annual property expo is a one-stop centre aimed at providing house-buyers the convenience of selecting their properties of choice under one roof.


Full info: Park Properties managing director Datuk Gan Boon Khuay (left) telling Siow about his project at the Mapex fair in Seremban recently. Looking on is Soam (centre).

Rehda Negri Sembilan chairman Datuk Soam Heng Choon said the expo provided a platform for investors to grab choice properties in good locations at unbeatable deals.

“With the improving economic situation, now is indeed a good time for purchasing your ideal home or office before prices start going up.

“We are also mindful in ensuring our developments are environmentally sustainable and will be encouraging our members to construct more energy-efficient and environmentally-friendly homes,” he said adding that this year’s Mapex theme — Go Green — reflected the association’s commitment to promoting green living.

Soam said developers were already planning sustainable development projects with the use of green building materials and through incorporating green features such as water conservation systems (rain water harvesting).

“Homes today incorporate a green living concept with beautifully landscaped parks, with the use of reusable, recyclable or biodegradeable building materials to reduce waste and pollution and energy-efficient lighting systems to reduce long term utility costs,” he said.

State housing, local government, new villages and public transportation committee chairman Datuk Siow Chen Pin commended the association for successfully organising the biennial expo.

He also emphasised the building of quality homes and encouraged developers to incorporate green features in their projects.

“With spacious homes, good amenities and public facilities, I think Seremban is also an ideal place for people working in the Klang Valley to settle down,” he said.

The participating developers offered various incentives including cash rebates and visitors who bought properties at the fair also had the opportunity to participate in a lucky draw.

The expo also had the support of co-sponsors Nippon Paint and Monier.

By The Star

KLCC Property Holdings posts higher profit

PETALING JAYA: KLCC Property Holdings Bhd had posted a higher net profit of RM467.2mil for the fourth quarter ending March 31, 2010 against RM362.5mil it posted on the same quarter last year due to higher valuation surplus of its properties.

It told Bursa Malaysia yesterday that the higher surplus of RM249.6mil was from the value adjustment of its investment properties of RM758mil as compared to RM508.4mil in the preceding year.

The group had declared a final dividend of 6 sen per share in the last quarter, to bring the total payout for the year to 11 sen per share.

For the full year, net profit was RM647.6mil or 69.33sen per share, versus RM535.65mil or 57.35sen per share.

The group's revenue for the financial year ending March 31, 2010 was RM881.3mil, reflected an increase of RM14.9mil or 2% as compared to RM866.5mil it posted last year.

The profit before taxation of RM1.292bil (inclusive of fair value adjustment) in the current year represent an improvement of RM259.3mil or 25% as compared with RM1.032bil for the year ended March 31, 2009, it said.

It added that the increase in revenue was mainly attributed to better rental income (in particular Menara ExxonMobil and Dayabumi) and the retail mall, despite a reduction in revenue from the hotel operations.

The improved profit before taxation was also attributed to lower operating and finance costs during the year.

By The Star