Malls, more malls everywhere

With the opening of 20 malls in the Klang Valley with a total net floor area of 4.4 million sq ft this year, the retail property market is likely to face an oversupply situation with pressure on rental rates, property consultants say.

Many shopping mall projects that were put on hold are back on track, and shoppers can expect to see a plethora of new retail centres on the horizon, especially within the Klang Valley area, comprising Kuala Lumpur, Selangor and Putrajaya.

According to statistics by the National Property Information Centre, as at March 2010, there were currently 49.98 million sq ft of existing retail space within the Klang Valley. Another 7.18 million sq ft is under development and 7.5 million sq ft of new space under planning.

Henry Butcher Retail managing director Tan Hai Hsin believes the new malls that are coming on stream will create an oversupply situation in the market.

“With the completion of at least 20 retail centres this year, the retail property market share will be squeezed,” Tan says, adding that the negative impact will be focused on certain locations with multiple malls.

“For example, the retail market in Cheras will be even more competitive when at least five new retail centres enter the market this year. In Subang, existing shopping centres are facing more challenges with four new players.”

He says newly-completed shopping centres will face pressure on rental rates.

“There are indeed too many malls within the Klang Valley. Newly-opened shopping centres in the last few years have been facing problems in securing sufficient tenants and shoppers. Many of their problems are due to market saturation, not the financial crisis.”

However, not all new malls will be casualties, even when there are already other existing, established shopping centres within the vicinity, says Malaysian Association for Shopping & Highrise Complex Management member Richard Chan.

“The Wangsa Walk Mall was opened in August last year in Wangsa Maju. Despite several prominent shopping centres (Jusco, Giant and Carrefour) already established within the area, retail space for the new mall (Wangsa Walk) has been fully taken-up,” he says.

A new mall can always be successful if it can meet the needs and wants of customers that were not met by existing shopping centres, he says, adding: “Malls are taken up because of a retail gap that cannot be met by the other malls. If you can fill up this gap, to the point of attracting the crowd from far away areas and meet the demands of the people, it will be a success.”

Chan cites KB Mall in Kota Baru, Kelantan, which is attracting customers from as far as Thailand.

“People from Thailand are going to the mall to get things that they cannot get in their own areas,” he says.


Elvin Fernandez feels mall developers should conduct a study and understand the market before constructing.

Khong & Jaafar Sdn Bhd managing director Elvin Fernandez believes that the success of potential new shopping centres is dependent on two key factors – their management and locations.

“Mall developers should conduct a study and understand the market before constructing.

Sometimes, they (the developers) will own part of the mall, say 50%, and divest the rest to different parties to manage. When that happens, you lose control,” he says.

Chan concurs that the number one criteria for the success of a shopping mall is management, rather than location. He says the next most important requirement is “accessibility.”

“The Mid Valley Megamall in Kuala Lumpur is strategically located but would it be successful if it didn’t have all those roads surrounding it? Your shopping centre might be in a good location but it would be pointless if it can’t draw the crowds,” he adds.

Fernandez says rental rates of downtown shopping centres (namely Suria KLCC and Pavilion in Kuala Lumpur) and suburban shopping centres (like Mid Valley in Kuala Lumpur, One Utama and Sunway Pyramid in Selangor) have been holding steady for a while.

Even during the global economic crisis, rates remained fairly steady and we expect them to remain steady for the remainder of 2010, he says, adding that he does not expect a “shoot-up” in rates.

According to Fernandez, rent for average prime space at downtown and suburban shopping centres are currently averaging RM50-RM60 per sq ft and RM30-RM35 per sq ft respectively.

“(Healthy) consumer spending and (good) tourism levels have managed to help keep the (retail) rates up,” he says.

With the improved economic conditions, the outlook for the retail sub-sector in Malaysia seems positive, regardless of the multiple malls, Chan says. “There are more festive holidays in the second half of the year and shopping malls also tend to have sales (in conjunction with the holidays) and year-end sales that will help boost business for the (retail) segment.”

Tan believes that the local retail industry will grow by 5% this year, with total sales turnover expected at RM74.6bil.

By The Star (by Eugene Mahalingam)

Bolton in talks to buy land with RM500m GDV

Property developer Bolton Bhd is in talks to buy land with potential gross development value (GDV) of RM500 million this financial year, says its top executive.

"We target to acquire strategic landbank for our future development in Penang and the Klang Valley," said chairman Datuk Mohamed Azman Yahya.

Bolton plans to use about a third of the RM195 million loan it got in May this year for the purchase.

"With a low net gearing of 0.1 times and having raised additional banking lines, we now have the opportunity to gear up and embark on a landbank acquisition exercise to fuel our growth phase," he told pressmen after the company's annual general meeting in Shah Alam, Selangor, yesterday.
The group would focus on developing high-end residential properties.

Bolton now has 2.4ha to 2.8ha of land and this is expected to keep the company profitable for the next three to four years.

Its plan also includes the launch of four major projects this year, which can bring in RM500 million in sales.

The projects are the recently-launched RM155 million Arata condominiums in Bukit Tunku, the RM202 million "SixCeylon" condominiums and the RM220 million "51 Gurney" niche apartments, all located in Kuala Lumpur.

And later this month, Bolton will unveil The Wharf, a commercial development within Taman Tasik Prima township in Puchong with a GDV of RM650 million.

The group may raise more debt from loans or bond sales or it can also sell new shares to raise funds.

Meanwhile, executive director Chan Wing Kwong said Bolton may venture abroad in two years if the right opportunity arises.

By Business Times

Bolton to launch Puchong property this month

SHAH ALAM: Bolton Bhd will unveil a new commercial development in Puchong, known as The Wharf, later this month, said executive director Chan Wing Kwong.

The development, with a gross development value (GDV) of RM650mil, is a mixed offering of boutique shop offices, service apartments and a retail shopping mall.

The Wharf would highlight green features that would capture the imagination of an ever-demanding market, Chan said after the company AGM yesterday.

Projects in the pipeline include a 33-storey condominium development, known as “Sixceylon” at Bukit Ceylon, Kuala Lumpur, with a GDV of about RM180mil.

Meanwhile, its “51 Gurney” comprises 71 super luxury condominium with a GDV of about RM150mil.

On expansion plans, Chan said Bolton would continue building on its strength in the Malaysian property market and consider venturing overseas in the next one to two years. “We will look within the region,” he added.

For the financial year ended March 31, Bolton posted a pre-tax profit of RM50.7mil on revenue of RM257.5mil against RM38.11mil and RM292.04mil respectively in the previous year.

By Bernama

Magna Prima eyes good, small plots of land in Klang Valley

MAGNA Prima Bhd, a property developer, said there are still many pockets of land available in the Klang Valley that fits its strategy.

"If you are talking about those 500-acre lands, then it will be difficult to find. But if you look closely, there are many good, small plots of land in the Klang Valley that are suitable for smaller property projects like townhouses and apartments, which is what we are focussing on.

"As long as you are not in a hurry, know the prices and market well, you will be able get good value from the land," said chief executive officer Yoong Nim Chee after the company's extraordinary general meeting in Petaling Jaya, Selangor, yesterday.

Yoong said the local property market, especially in the middle to higher income segment, has improved this year and expects the company to benefit from it.
But it is also seeing demand from first time buyers who are only willing to pay between RM200,000 to RM300,000 per unit.

He expects the company to perform better than last year, when it registered a net profit of RM6.67 million, a decline of more than 70 per cent against 2008 net profit of RM27 million.

For the rest of the year, the company will launch several residential properties, including D'Sierra in Selayang, One Villa at Shah Alam, One Jalil at Bukit Jalil, Magna City off Jalan Kuching, Kuala Lumpur, as well a commercial property in Shah Alam, which will be rented out.

The D'Sierra project, a 3-storey townhouse development, is expected to have a gross development value of about RM70 million. The project is expected to be launched within two months. The EGM held yesterday was to secure shareholders' approval to buy the land for the D'Sierra development.

Magna Prima is also planning to launch a high-end property project near the KL City Centre area in the near future. The project will be the company's second project within the KLCC vicinity, since the Avare development which was done a few years ago.

By Business Times

REIT vs direct real estate investment

Investing in real estate can be tricky.

For a start, those who intend to make a quick buck by “flipping” property within a few months will find that it is risky, especially in a property market less buoyant than in Hong Kong or Singapore.

The alternative is hard work, that is, managing residential properties (and absorbing all the hidden costs that come along with it) as long term investments, receiving rent and selling them off for a capital gain or profit.

Another factor that may deter investors from real estate is the difficulty in raising enough capital to purchase a particular property.

So, should you consider putting your money in a real estate investment trust (REIT) instead?

Granted, a REIT does not comprise residential property, but if it is profit you are interested in, it may be an option.

REITs originated in the United States in the 1960s, but it wasn’t until 2005 that Axis REIT became the first property trust to be listed on Bursa Malaysia.

In Malaysia, there are now 14 REITs to choose from on the Main Market, offering investors a choice to own stakes in commercial, industrial, plantation and office real estate.

Aside from being more liquid than investing in real estate, one of the reasons why REITs are more appealing than investing in actual real estate is because of its high yield.

Gross dividend yield in the FTSE Bursa Malaysia index is about 2.9%, while the average yield for a REIT in Malaysia is about 8%.

REITs yield higher returns because commercial real estate generates a huge amount of cash flow from rentals.

If one invests in real estate though, it may be hard to charge the most preferred rental rate, even if the property had been purchased for a hefty price, simply due to market forces.

As for REIT prices on the stock market, they generally tend to be “low risk” because their prices are sustained by the yield factor, hence the volatility element is reduced.

Even so, REITs are not immune to economic difficulties.

REITs such as AmFirst, Hektar, UOA and Axis hit their lowest point in the middle of the financial crisis in 2008 but have since recovered to their pre-crisis prices, if not better.

Part of their recovery, says an analyst, is due to good management, good investor relations and a proven track record when it comes to acquisitions.

Still, one critic of REITs says it is probably more worthwhile to purchase stocks of established companies if they want to play safe.

Advocates of the property trust point to the fact that REITs are a different investment class altogether, choosing to view them as an investment that bridges the gap between a fixed deposit and the stock market.

One drawback of REITs is their inability to benefit from capital gain, unlike real estate.

But with REITs, returns may be secured with less risk which make them a nice way to take advantage of the big booms in the real estate market.

Investors can do without taking on the risk of mortgage payments, unscrupulous tenants and rising tax rates.

However, less risk obviously comes with less reward.

Good capital appreciation is still the main factor driving demand for landed residential properties.

Since 2008, there has been an annual compounded growth rate of 10% for capital appreciation in residential hotspots such as Petaling Jaya, Taman Tun Dr. Ismail and Mont Kiara.

A home can go up in value ten-fold given the right market conditions, which would give one a hefty sum of money right into his or her pocket - this won’t happen with any REIT.

Ultimately, for someone who wants to have more control of their assets and is willing to improve their value, investing in residential real estate can be a good choice.

For someone looking for passive real estate investment, with the added benefits of portfolio diversification and liquidity, a REIT is a good option to consider.

Think of them as allowing investors to be exposed to the real estate market without having to fork out as much capital.

Alternatively, REITs could be purchased as part of a balanced portfolio, until one has enough capital to enter the real estate market.

By The Star

GuocoLand unit ups stake in Tower REIT

PETALING JAYA: GuocoLand Malaysia Bhd’s wholly-owned HLP Equities Sdn Bhd has acquired 4.55 million units, or 1.62%, in Tower REIT for RM5.1mil including transaction costs via a direct transaction.

The acquisition raised GuocoLand’s interest in Tower REIT to 21.66% from 20.04% previously, it told Bursa Malaysia yesterday.

Tower REIT is a real estate investment trust that owns three office buildings – Menara HLA, Menara ING and HP Towers.

By The Star

Bolton to unveil RM650m 'The Wharf'

Property developer Bolton Bhd will unveil a new commercial development in Puchong, known as "The Wharf", later this month, said its executive director Chan Wing Kwong.

The development, with a gross development value of RM650 million, is a mixed offering of boutique shop offices, service apartments and a retail shopping mall.

The Wharf would highlight green features that would capture the imagination of an ever-demanding market, he told reporters after the company's annual general meeting today.

Other projects in the pipeline include a 33-storey development, known as "Sixceylon" at Bukit Ceylon, Kuala Lumpur, comprising 215 units of luxury condominiums with a gross development value of about RM180.0 million.

Meanwhile, "51 Gurney" is a unique offering comprises 71 units of super luxury condominium with a gross development value of about RM150.0 million.

Asked on expansion plans, he said the company would continue building its strength in the Malaysian property market while consider venturing overseas in the next one to two years.
"We will look within the region," he added.

For the financial year ended March 31, 2010, the company registered a pre-tax profit of RM50.7 million, up 33 per cent, compared with 38.113 million chalked up in the same period last year.

However, revenue declined to RM257.473 million from RM292.044 million previously.

By Bernama

Bolton to start RM500m projects in 2010

Bolton Bhd, a Malaysian property developer, will start property projects this year that may generate RM500 million in sales, chairman Azman Yahya told reporters in Shah Alam, near Kuala Lumpur today.

The projects are mostly in the capital, including high-end condominiums in Bukit Tunku residential area and Jalan Bukit Ceylon, Azman said.

By Bloomberg

CDL weighs options on prime KL land

PETALING JAYA: City Develop-ments Ltd of Singapore (CDL) is considering the available options, including whether to sell the 32,000 sq ft land in Jalan Bukit Bintang in Kuala Lumpur that is owned by a wholly-owned unit of its 54% subsidiary, Millennium & Copthorne Hotels plc.

In a statement yesterday, CDL said the group had from time to time received indications of interest from third parties keen on the land. CDL will make further announcements as appropriate if and when any agreement has been entered into for the sale of the subject site,” it said.

CDL’s Malaysian unit, City Developments Sdn Bhd, had earlier planned to build a 42-storey high-end serviced apartment project, Millennium Residence, comprising 135 one-, two- and three-bedroom units on the site.

It was initially planned for launch in the first half of 2008 but the project has been delayed several times due to the soft market for high-end condominiums around the KLCC area. The parcel is located between the Grand Millennium Hotel and the Pavilion Kuala Lumpur shopping centre.

CDL, which is owned by Singapore tycoon Kwek Leng Beng, owns the Grand Millennium Hotel.

A local daily had on Wednesday reported that the selling price for the land was being negotiated for more than RM3,000 per sq ft (psf).

An analyst in a local brokerage said “if materialised, this will re-write the previous record set by Sunrise for Wisma Angkasa Raya (RM2,588psf) and recent transactions of RM2,000-RM2,200psf for landbank around the KLCC area.”

Commenting on the possible sale of the land, a real estate consultant said land around KLCC was getting scarce and although the market was still quite soft, companies with deep pockets were still on the lookout for strategic land.

“The successful bidder may have to hold the land for a while until the market gets better if it intends to build a residential project there,” he told StarBiz.

By The Star

KL Plaza to re-open as farenheit88

KUALA LUMPUR: The 27-year-old KL Plaza will be opening for business on Sunday after a refurbishment of more than RM100mil.

It will be officially launched next month, mall manager Kuala Lumpur Pavilion Sdn Bhd said.

Its chief executive officer for retail Joyce Yap yesterday unveiled two of the anchor tenants for the former KL Plaza, which has been renamed fahrenheit88, at a press conference.

These are Japan’s top casual wear brand UNIQLO and Malaysia’s Signature IT.

Both of them will be taking up 23,000 sq ft and 75,300 sq ft of space respectively in the mall, which has a net lettable area of about 300,000 sq ft, about a quarter the size of Pavilion KL.

Yap, who will be managing both malls, said there would be more homegrown brands in fahrenheit88.

“Unlike other shopping malls where the average outlet is about 2,000 sq ft, about 50% of the stores in this new mall will be between 200 and 500 sq ft. Many of them will be small and medium-sized businesses,” she said.

Yap, who is also managing Kuala Lumpur Pavilion, said fahrenheit88 would have a different appeal.

Its main target will be those aged between 18 and 35.

UNIQLO is making its debut in Kuala Lumpur after entering into a joint venture with DNP Clothing Sdn Bhd, a subsidiary of Wing Tai Asia, with a capital of RM18.8mil.

UNIQLO owns 55% while DNP the remaining 45%. The brand entered the Singapore market 18 months ago.

DNP operates more than 50 retails outlets in Malaysia carrying various brands such as Dorothy Perkins, Miss Selfridge, Top Man and Top Shop.

UNIQLO managing director Satoshi Onoguchi said there were plans to open more stores in all major cities around the world.

The expansion into Singapore in April last year marked its entry into South-East Asia.

There are currently over 900 stores worldwide.

Fahreheit88 is owned by Makna Mujur Sdn Bhd, which is owned by Pavilion International Development Fund Ltd.

The principal of this fund is Qatar Investment Authority (QIA). QIA also owns 49% of the Pavilion KL shopping mall nearby.

Fahrenheit88, formerly known as KL Plaza, was acquired by Makna Mujur for RM470mil in 2007. KL Plaza was previously owned by the Berjaya group.

By AP

Ivory to buy land in Penang for RM25m

IVORY Properties Group Bhd will buy a plot of land measuring 0.5ha in Bandar Batu Ferringhi, Penang, for RM25 million.

Ivory told Bursa Malaysia yesterday that it had entered into a conditional sale and purchase agreement with Lim Soon Hin and Lim Soon Vin for the purpose.

It plans to build 96 units of condominium with an estimated GDV of RM159 million on the land.

By Business Times

Hektar REIT: Buy, fair value price RM1.23

AMRESEARCH Sdn Bhd has maintained a "buy" call on Hektar REIT Bhd's due to its future earnings potential which are in line with expectations despite a weak occupancy.

In its research note, AmResearch said Hektar has attractive yield and defensive assets under its portfolio with a fair value of RM1.23 a unit under review pending a meeting with the management.

Hektar reported a net income of RM9 million for second quarter 2010, taking its first half earnings in 2010 to RM19 million.

Net income grew by 7 per cent on the back of 4 per cent increase in rental income. This is mostly driven by stronger occupancy in Mahkota Parade following its asset enhancement exercise.
Similarly, Wetex Parade showed stronger occupancy to 92 per cent, from 90 per cent as at end of last year.

However, Subang Parade's tenancy dropped to 95 per cent (from 100 per cent) as some of its tenants moved out, most notably Toys R US.

While this is a slight setback to the portfolio, AmResearch said this gives an opportunity for Hektar to redesign its mall concept at certain floors, thus enhancing its mall.

At current price, the REIT is trading at par to its net asset value of RM1.28 per unit and its current yield of 9 per cent remains attractive comparing against 10-year government bonds (4.2 per cent) and fixed deposit of 2.8 per cent.

By Business Times

Distressed property sales to increase

LONDON: More distressed property sales are expected in the next 12 months as changes to international regulations will likely raise the capital cost of holding commercial property on banks' balance sheets, an industry body said.

Growth in distressed property listings eased in the second quarter of this year, but are expected to worsen in the third, the UK Royal Institution of Chartered Surveyors (RICS) said yesterday, based on the results of a survey of its members.

RICS defines distressed properties as those with foreclosure orders or which are advertised for sale by their mortgagee, and which tend to fetch lower prices than their market value.

Three European countries - Portugal, Spain and Germany - were worse off in the second quarter, reporting distress in their market had risen at a faster pace.

By Reuters

Singapore's Kwek in talks to sell KL land

The parcel of land in Jalan Bukit Bintang could fetch more than RM3,000 per sq ft, possibly a record price for a land deal in Malaysia's history.

Singapore's property tycoon Kwek Leng Beng is in talks to sell a parcel of land in Jalan Bukit Bintang, Kuala Lumpur, which could possibly fetch a record price for a land deal in this country's history.

It is understood that the selling price for the land, owned by Kwek's City Developments Ltd (CDL), is being negotiated for more than RM3,000 per sq ft.

To date, the most expensive land deal reported has been Sunrise Bhd's acquisition of Wisma Angkasa Raya in Jalan Ampang, Kuala Lumpur, for RM2,588 per sq ft. In May this year, FFM Bhd and Kuok Brothers Sdn Bhd sold a piece of land in Jalan Perak, Kuala Lumpur, for RM2,200 per sq ft.

CDL's land in Jalan Bukit Bintang is about 32,000 sq ft. At RM3,000 per sq ft, the deal could fetch RM96 million.

The land sits between the Grand Millennium Kuala Lumpur hotel and the Pavilion Kuala Lumpur shopping centre. CDL, which is part of Singapore's Hong Leong Group, also owns the Grand Millennium hotel.

Contenders for the land are believed to be the owner of Pavilion Kuala Lumpur and the YTL group, both of which have sizeable assets along Jalan Bukit Bintang.

Sources told Business Times that the RM500 million Millennium Residences project originally planned for the site and launched in 2007 had been aborted and that the land was being negotiated for sale.

A quick check at the site revealed that the project signage and hoarding had been removed. Some work on the 42-storey high-end condominium with an additional 15-storey crown started in 2008, but has since stalled.

In late March, a spokesperson for Singapore's Hong Leong said that the Millennium Residences would be launched later this year.

However, replying to a follow-up question from Business Times last week, the spokesperson said: "There are no details on the Millennium Residences available at this point."

When asked if the project had been scrapped and the land was being negotiated for sale, the spokesperson said: "We have no comment at this stage."

Pavilion Kuala Lumpur is wholly owned by Urusharta Cemerlang Sdn Bhd, which in turn is 51 per cent owned by Urusharta Cemerlang Development Sdn Bhd and 49 per cent by the Qatar Investment Authority (QIA).

Pavilion Kuala Lumpur will be managing the new Fahrenheit 88 shopping centre, previously known as KL Plaza. It belongs to Makna Mujur Sdn Bhd, which is owned by Pavilion International Development Fund Ltd, of which the principal is the QIA.

YTL owns the Starhill Gallery and Lot 10 shopping centres and the JW Marriott hotel in the vicinity.

By Business Times

CapitaMalls may seek venture in Vietnam

CapitaMalls Asia Ltd, the retail property unit of Southeast Asia’s biggest developer, may seek shopping-center ventures in Vietnam after expanding in markets including China and India.

Singapore-based CapitaMalls may collaborate with its parent company CapitaLand Ltd to explore "interesting opportunities" in Vietnam, Chief Executive Officer Lim Beng Chee said.

CapitaLand, which is building homes in the nation, said this year it expects properties in Vietnam to make up 10 per cent of its assets in three to five years from about 1.5 per cent now.

“If they come across something interesting that we could look at for a shopping mall, we can tap on their expertise to go into the market,” Lim said in an interview in Singapore late yesterday.

CapitaMalls is seeking retail projects in Vietnam as the economy expanded 6.4 per cent in the three months through June, compared with 5.8 per cent in the first quarter. The company also plans to invest S$800 million (US$592 million) to S$1 billion in the second half in Singapore, Malaysia and China, it said yesterday.

The retail property operator will also open three more malls in China by the end of the year in addition to the four properties it recently acquired, Lim said.

"There is definitely a positive outlook on retail in the region," said Ong Choon Fah, head of research at DTZ Debenham Tie Leung in Singapore, a real-estate consulting group. Lifestyle changes in the region "will support retail, but it’s very competitive. There will be some that do exceedingly well, and there will be some that fall to the wayside."

CapitaMalls said yesterday its second-quarter profit fell 24 per cent to S$113.1 million as it booked a smaller gain from the increase in value of its properties. Without the one-time changes, earnings would have increased six times, it said.

In Singapore, CapitaMalls plans to eventually offer its ION mall development along the Orchard Road shopping belt to CapitaMall Trust, the island state’s biggest real-estate investment trust, which it manages. The sale will only be considered when the property is "stabilized," Lim said.

By Bloomberg

Sime aims to double revenue from healthcare

Sime Darby Bhd, the country's largest conglomerate, wants to double its healthcare revenue in three years, looking for land outside the Klang Valley as well as Sabah and Sarawak to build its hospital portfolio.

The healthcare division currently contributes less than 5 per cent to group revenue.

Last year, Sime Darby posted a net profit of RM2.3 billion on a revenue of RM31.01 billion.

Sime Darby Property Bhd managing director Tunku Datuk Badlishah Tunku Annuar said the group may buy land to build its own hospitals or co-develop with others.

Tunku Badlishah said it may also consider buying existing hospitals and refurbishing the properties.
"It can be costly to set up a hospital. Returns on investment can take a while. The best thing is to form smart partnerships like what we did with Perdana ParkCity (Sdn Bhd)," he said.

Perdana ParkCity, a unit of the timber-based Samling group, is building a RM143 million hospital on a design, build and lease concept in the Desa ParkCity township in Bukit Menjalara, Kuala Lumpur.

The 300-bed hospital, called Sime Darby Medical Desa Park City, will operate by first quarter of 2013.

Sime Darby Healthcare has an agreement with Perdana ParkCity to lease the hospital for 15 years.

"We are bullish on the hospital, which is dedicated to women and children's healthcare. It will have good catchment," he said after the ground breaking ceremony at the project site yesterday.

It was officiated by City Hall director general Datuk Salleh Yusup. Also present were Sime Darby Medical Centre Subang Jaya chairman Tengku Datuk Ahmad Shah Sultan Salahuddin Abdul Aziz Shah, Perdana ParckCity chairman Yaw Chee Siew and chief executive officer Lee Liam Chye.

The hospital will comprise a three-storey podium block featuring full service outpatient clinics, advanced diagnostics services, six operating theatres, a 20-bed critical care unit, and a six-storey ward.

It will be the fourth full-fledged hospital operated by Sime Darby Group.

It now owns and operates the 393-bed Sime Darby Medical Centre (previously known as the Subang Jaya Medical Centre) in Subang Jaya and the Sime Darby Specialist Centre Megah in Petaling Jaya.

The group recently acquired a 220-bed Sime Darby Medical Centre Ara Damansara, which is under refurbishment and will open by 2011.

By Business Times

Dijaya, IWSB in Danga Bay venture

Property developers Dijaya Corp Bhd and Iskandar Water Front Sdn Bhd (IWSB) will jointly develop two parcels of prime waterfront land at Danga Bay, Johor Baru, into a mixed development project that carries a gross value of RM3.8 billion over the next 12 years.

Goldhill Quest Sdn Bhd - a 60:40 joint-venture between Nagasari Cerdas Sdn Bhd (a wholly-owned subsidiary of Dijaya Corp) and Global Corporate Development Bhd, which is wholly-owned by IWSB - yesterday sealed the deal to purchase the land for the project from Danga Bay Sdn Bhd for RM308 million or RM190 per sq ft.

Johor Menteri Besar Datuk Abdul Ghani Othman witnessed the signing of the sale and purchase agreements for the two parcels of land totalling 14.8ha in Johor Baru.

It is one of the biggest private land deals since the inception of Iskandar Malaysia in 2006, where it is located.

Dijaya was represented at the signing ceremony by its chairman Datuk Rohana Mahmood and managing director Datuk Tong Kien Onn, and IWSB by its chairman Johar Salim Yahya and chief executive officer Datuk Lim Kang Hoo.

Also present was Dijaya group chief executive officer Tan Sri Danny Tan Chee Sing.

Dijaya is planning an integrated development in Danga Bay, featuring prestigious commercial, residential and leisure properties.

The group is known for its flagship Tropicana Golf and Country Resort development in Petaling Jaya.

Abdul Ghani said the initiation of the project is a milestone in the development of Iskandar Malaysia as it represents the first major interest among local investors in the development corridor.

"It's an interesting investment trend as we at Iskandar Malaysia had started with those from the Middle East and Europe and countries such as South Korea.

"Now there seems to be a flurry of investment enquiries among the local companies. We are now looking at a potentially good mix of foreign and local investments in Iskandar Malaysia."

Abdul Ghani attributed the growing interest among local investors towards the development corridor to the level of commitment by the government and agencies tasked with making it a success, as well as the practicality of the area as the best choice of investment in the region.

By Business Times

Dijaya banking on Iskandar’s attraction

Tan Sri Danny Tan Chee Seng (left) and Iskandar Waterfront Sdn Bhd chairman Johar Salim Yahaya at the signing of agreements between their companies yesterday

JOHOR BARU: Dijaya Corp Bhd is banking on the long-term sustainable development of Iskandar Malaysia as the main attraction for its Danga Bay project here.

Group chief executive officer Tan Sri Danny Tan Chee Sing said apart from the project’s location on the prime waterfront land, Johor’s close proximity to Singapore would also be another selling point.

“The time is right for us to come to Iskandar in view of the good progress in the economic growth corridor since its launch,” he said at a press conference at the signing of the sales and purchase agreements for two parcels of land, totalling about 14.97ha in Danga Bay, for RM308mil.

The land is being acquired by Goldhill Quest Sdn Bhd – a 60:40 joint-venture between Nagasari Cerdas Sdn Bhd (a wholly-owned subsidiary of Dijaya Corp) and Global Corporate Development Sdn Bhd, which is 100% owned by Iskandar Waterfront Sdn Bhd.

Tan said Goldhill Quest would develop the project, which has a total gross development value of RM3.8bil, over the next 12 years.

Components of the integrated waterfront development project would include a stand-alone retail mall, four- and five-star hotel towers and serviced apartments blocks, he said.

“The project is likely to be known as Tropicana @ Danga Bay, after our flagship Tropicana Golf & Country Resort in Petaling Jaya,” Tan said.

Meanwhile, Johor Mentri Besar Datuk Abdul Ghani Othman said demand for high-end properties in Iskandar was on the upward trend and Singaporeans would be the major buyers for these properties.

He also said Khazanah Nasional Bhd and Temasek Holdings Ltd’s proposed joint-venture iconic wellness township project in Danga Bay augured well for Iskandar.

By The Star

KYM, Vale agree to extend deadline for property sale

PETALING JAYA: KYM Holdings Bhd has mutually agreed with Harta Makmur Sdn Bhd and Vale Malaysia Manufacturing Sdn Bhd to extend the cut-off date for a sale and purchase agreement (SPA) involving 13 parcels of leasehold properties to Aug 31.

In a filing with Bursa Malaysia yesterday, KYM said the parties had signed a conditional SPA on March 31 pursuant to Vale exercising its option to purchase the properties, totalling 305.94ha, from KYM’s 54%-owned unit Harta Makmur for RM93.76mil cash.

Harta Makmur last year sold 485.6ha of leasehold land in Teluk Rubiah to Vale for RM195.7mil.year.

In a separate statement, KYM said its wholly-owned unit KYM Built Sdn Bhd had on July 29 accepted a contract from Vale Malaysia for the refurbishment of a building for the use as a site office and upgrading of the main entrance at Teluk Rubiah, Perak for RM300,265.

“The contract is expected to commence next week and will be completed within a month.

“None of the directors or major shareholders or persons connected to the directors or major shareholders of KYM has any direct or indirect interest in the award of contract,” it said.

By The Star

HK property prices set to rise another 15pc

HONG KONG: Hong Kong home prices will rise another 15 per cent in the next 12 months as limited supply forces buyers to pay more for property that’s already expensive, CLSA Ltd’s Nicole Wong said.

Prices will increase because the city’s promising job market and growing wealth will help drive demand for real estate while supply doesn’t increase much, Wong, the regional head of property research for CLSA, said at a media briefing yesterday .

“Is Hong Kong real estate too expensive? Definitely,” Wong said.

By Bloomberg