Penang to become 'preferred regional hub'

The Federal Government is to make Penang the preferred hub in the region, Prime Minister Datuk Seri Najib Tun Razak said Monday.

He said several development strategies designed to stimulate the state's economy and provide jobs were driving the federal government towards that goal.

The development in Penang would result in encouraging economic growth in the national interest, he said at the ground-breaking for an extension project at the Bayan Lepas International Airport here. Penang Chief Minister Lim Guan Eng was present at the ceremony.

Najib said 10 infrastructure projects had been identified for implementation, and they included the expansion of the airport, Penang Port and the Penang Bridge, construction of the second bridge and the creation of a multimedia super corridor in the state.

"These initiatives will not only facilitate economic activities but also support our nation's objective to increase tourism revenue from the RM53 billion in 2009 to RM168 billion by 2020," he said.

Najib said Penang had many unique advantages which positioned the state well to become a hub for the northern corridor and the growth triangle comprising Indonesia, Malaysia and Thailand.

"For example, Penang already offers the highest economic density and the shortest distance to market for a city in the growth triangle," he said.

The total development of the airport expansion project, targeted to be completed by 2012, costs RM250 million, which is provided for under the RM60-billion fiscal stimulus package announced by the federal government last year.

Najib said the project was yet another federal government initiative to enhance facilities and services as Penang was a catalyst for growth of the tourism industry.

From the commercial perspective, airports enjoyed a competitive advantage and a captive market and, today, the modern airport offered much more than just a place to catch a flight, he said.

He said that following the example of successful airline hubs around the world, Malaysia envisioned its airports as a platform to drive commercial business.

In today's interconnected world, the abilities to offer high quality reliable air travel services and facilities served as a catalyst to attract trade and investment into any country, he said, adding that this directly supported employment and wealth generation which in turn would help Malaysia's drive to become a high-income nation.

Najib said the Penang international airport had seen encouraging traffic growth, receiving more than 3.4 million passengers this year up to September, up by 30.5 per cent from the corresponding period last year.

"As such, I am sure the expansion of the airport will enable Penang to achieve greater economic growth," he said.

By Bernama

Upswing seen for next year

Despite the gloomy economic outlook on the global front, the local property market is expected to be positive and on the upswing for next year and 2012, the Association of Valuers, Property Managers, Estate Agents and Property Consultants in the Private Sector Malaysia (PEPS) organising chairman Eric Ooi said.

However, there were certain market segments within the property sector that may be lagging behind, he says.

Ooi says the Malaysian economy has bounced back, the stock exchange is reaching new highs, an indication that the stimulus packages introduced by the government after the global financial crisis is working.

On the different property segments, he says landed properties in prime locations have skyrocketed, especially in the Klang Valley, and the retail property segment remains fairly strong.


Eric Ooi fielding questions from reporters, while PEPS president Choy Yue Kwong is on the left.

However, the office sector is still soft but showing signs of improvement, as is the industrial sector, he says.

Ooi also says there is a need to ensure greater balanced growth in all sectors of the property market and this requires government support as well as incentives for the developers to participate in such property developments.

He cites affordable homes to the masses and young couples setting homes as a segment of the property market that need further support from the Government.

However, Ooi concedes that affordable homes in the residential sector, especially in the Klang Valley and in prime locations in other states are possibly going beyond the affordability of this young group of people, based on their general income levels as studies show the average homes in the Klang Valley cost from RM400,000 to RM450,000.

On the value of Malaysian properties, Ooi says there was a time not too long ago when Malaysian properties were undervalued.

But now we believe the properties are generally fairly valued based on our estimates. Malaysian properties generally have a trend of steady and stable growth over the years, unlike some other developing countries in the region where property prices can spike considerably in a matter of a few years, he says.

On high-end properties, he says there is currently a good balance of locals as well as foreigners buying these properties, which are generally worth RM1mil and above.

We are also seeing many high net-worth foreigners showing interest in properties in Asia and some have chosen to purchase properties in Malaysia, despite the lower yield, compared with, say, Vietnam.

These foreign buyers may not be looking at high yield, which normally comes with higher risk, opting for properties with stable growth such as those in Malaysia and Singapore. As a rule, Malaysian properties generally double up in their value over a ten-year period, but there are exceptions, especially in strategic locations in the Golden Triangle, he says.

The 4th Malaysian Property Summit 2011 will be held on Jan 18 at the Sime Darby Convention Centre in Bukit Kiara, Kuala Lumpur.

Organised by PEPS, it will focus on property trends, movements in rents and prices, demand and supply and forecasts for the various property segments of the property market.

We expect over 200 participants from the property sector such as developers, property owners, investors, fund managers and bankers as well as property analysts, economists and property consultants present at the this property summit, Ooi says.

Property consultancy Savills Rahim & Co executive chairman and founder Datuk Abdul Rahim Rahman says he is optimistic about next year, particularly the second half of 2011.

The Government has announced various mega projects. This will have a spillover effect. But you cannot expect to see the cranes immediately. That will come later. The land (for the various projects) has been identified. As for the development of Kampong Bharu, the bill has been tabled for first reading. So the corporation to see to that development will be set up some time next year, says Abdul Rahim.

Much of the economic growth will be driven by the services and manufacturing sectors and this will have a positive effect on the property sector.

Nevertheless, Abdul Rahim cautions that there must be adequate studies done on demand and supply today and in the future for office space.

There are 6 million sq ft of office space in Kuala Lumpur under construction today. This will be ready by 2012, excluding those announced and being planned by the government this year. It is prudent to do more detailed feasibility studies on demand and needs, with some consideration given to what is happening in US and Europe today, and if there is a need to postpone some of these projects, let's do so.

Nonetheless, Abdul Rahim says he supports the high value, high impact projects because they will help to push the country into the high-income bracket model that the government is envisioning.

But do not do it at the expense of a glut, he says.

In all likelihood, if the government goes ahead with the planned projects, there will be 10 million sq ft of office space on the cards entering the market in years to come.

The city of Kuala Lumpur can only absorb 1.5 million sq ft of office space. This has been the trend for the last three years. That means, next year and 2012, we can only absorb 3 million, and we have 6 million sq ft coming on stream in 2012, excluding the office space that will be made available in the several high-impact projects announced this year.

By The Star

Land rights and legacy

MALAYSIA is 53 years old this year. More than 20 years ago in the 1980s, a group of Penans from Sarawak, wearing only flimsy loin cloths and feathered head gear, flew into Kuala Lumpur to protest against the deforestation. The opening up of the interiors resulted in environmental degradation, clogging rivers and cutting off their source of food and clean water supply.

They contented that the forest was their home, ancestral grounds, source of livelihood, that they have native customary land rights'' to the forest. Remember the movie Avatar?

Fast forward to 1990s, a decade later. Initial plans to build the Bakun hydroelectric dam in Sarawak created another hue and cry among natives. Thousands of Kayans and Kenyahs were displaced. The 67,000ha reservoir, about the size of Singapore, is being flooded right now, after much delay in its construction.

Enter the present. Early this week, the Kampong Baru Development Corp Bill was tabled for its first reading. It will go through the usual process for debate in the lower house of Parliament and in Senate, the upper house.

That Bill paves the way for the setting up of a corporation to implement the development of Kampong Baru (literally translated new village), a Malay reserve enclave that goes back to British India days in the late 19th century.

Covering about 380 acres amid the progress and modernity of the city, the village is a rustic world of timber and concrete housing, with chickens running helter skelter admist the gleaming Petronas Twin Towers. In Kampong Baru, traditions still reign supreme.

For years, the different administrations have tried to bring development to the land owners there ar 4,300 lot owners only to face a palette of issues, from legal to political to racial. It is the hotbed of Malay sentiments.

What has the natives of Sarawak laying claim to the forest got to do with the Malays laying claim to Kampong Baru? First, they are all Malaysians, known singularly as bumiputras, or sons of the soil. Secondly, they want their land rights to be protected.

Land ownership is a funny thing. It stirs up much sentiment within each of us, no matter what tribe we may hail from. Although we may lay claim to modernity and display elements of it, in many ways, if we examine the roots of our being, each of the race that make up this country is tribal. And each of us have a legacy we want to protect and pass on to future generations.

Legacy goes beyond land ownership, or wealth but has much to do with it. Legacy also includes values, knowledge, experiences that are passed down from generation to generation. These are the intangibles that must be considered as assets, as much as the tangibles like land and houses.

Legacy should not just denotes the past. It includes the present and future because mankind is made in such a way that they enter this world with the desire to leave something for future generations.

Herein lies the need for strong leadership because how a family or a country is governed has a strong influence on the future. The core issue of Kampong Baru development will be its Malay land rights, just as the natives of Sarawak demand their native customary rights, just as everybody in this country desire his right to live, work and prosper in this country, unquestioned.

The number of hotels, office blocks, residential houses or condominiums, roads and healthcare are important, but when laid side-by-side with the issue of the legacy of the Malay community of Kampong Baru, the future architectural landscape seems peripheral.

Kampong Baru is among several mega property projects to be undertaken by the government but it is probably, by far, one that may potentially be the most contentious because of this issue of legacy and land rights.

Let's have consensus, not directives.

Assistant news editor Thean Lee Cheng is all for development, but don't leave out the soul of that development.

By The Star (by Thean Lee Cheng)

IJM unit wins RM460m job from Naza TTDI

PETALING JAYA: IJM Corp Bhd said its wholly-owned unit received a contract worth RM460.59mil from Naza TTDI Construction Sdn Bhd for superstructure works for the latter’s development in Kuala Lumpur.

It told Bursa Malaysia yesterday that IJM Construction Sdn Bhd received the work contract acceptance letter on Dec 16 for the execution and completion of superstructure works for the Platinum Park Phase 3 along Jalan Stonor.

Phase three includes the proposed development of two office tower blocks of 50 and 38 levels, comprising one facilities area, eight levels of podium carpark and three levels of basement carpark.

The completion date for this project is Dec 31, 2013.

Platinum Park is an integrated high-end residential and commercial development. It will see seven towers, namely two super condominium towers, a serviced apartment, a five-star hotel and three Grade A office towers.

By The Star

KPJ to inject assets into REIT

KPJ Healthcare Bhd is set to raise RM138.7 million by injecting three of its hospital buildings into a real estate investment trust (REIT) scheme called Al-'Aqar KPJ REIT.

KPJ managing director Datin Paduka Siti Sa'diah Sheikh Bakir said under the scheme, the healthcare group will in return get a combination of RM1.1 million in cash and the balance in new Al-'Aqar KPJ REIT units.

The exercise involves the sale of two hospital buildings here - the Bandar Baru Klang Specialist Hospital in Selangor and the Kluang Utama Specialist Hospital in Johor.

The third hospital is the Rumah Sakit Bumi Serpong Damai building in Jakarta, Indonesia.



To retain the use of the buildings, the group in turn will rent the buildings via a 15-year lease with an option to extend the tenure for another 15 years.
The asset injection will allow the group to unlock value and realise its investment in the properties, Siti Sa'adiah said.

Proceeds from the asset sales will be used to pare down the group's borrowings and trim the gearing to 0.4 times from 0.5 times and an interest cost-savings of about RM2.2 million a year.

"This will enable us to gain access into funds in our plans to build new hospitals next year such as in Pasir Gudang, Kuantan, Klang, Muar and in Sabah," she told reporters in Kuala Lumpur yesterday after Al-'Aqar KPJ REIT's annual shareholder meeting.

Al-'Aqar KPJ REIT is the first and largest Islamic healthcare REIT in Malaysia and managed by Damansara REIT managers Sdn Bhd, which is a member of the Johor Corp Group (JCorp).

The sale and leaseback of the three hospitals is the fourth tranche of the REIT's injection since its launch in 2006.

The first tranche involved the injection of six hospital buildings valued at RM481.2 million, the second involved the sale of five buildings for RM170.0 million and the third comprised seven hospital buildings and one nursing college for RM292.5 million.

With the injection, Al-'Aqar KPJ REIT's total enlarged units stands at 636.8 million units with a total of 22 hospital buildings under its scheme, one nursing college, the Selesa Hotel, Metropolis Tower and another two properties in Jakarta.

Upon completion of the proposed acquisitions, the enlarged total asset value will be more than RM1.2 billion.

Al-'Aqar KPJ REIT will seek listing and quotation for its consideration units of 56.6 million units on the Main Board of Bursa Securities.

By Business Times

MRT project to generate billion$ in GNI

The implementation of the mass rapid transit (MRT) project in the Klang Valley is expected to generate a Gross National Income (GNI) of between RM3 billion and RM4 billion beginning next year until 2020, said Prime Minister Datuk Seri Najib Tun Razak.

He said between RM8 billion and RM12 billion was expected to be generated in terms of spinoffs from the construction of the MRT project.

"RM21 billion in GNI incremental impact is anticipated to be generated in 2020 from the value appreciation of the project and increase in productivity rate," Najib told a press conference at the Royal Malaysian Air Force base in Subang before his departure to Kuala Terengganu for a one-day official visit.

The Prime Minister said the Cabinet had approved the implementation of the MRT project at its weekly meeting on Friday.

The MRT, the largest infrastructure project in Malaysia, is an economic entry point project identified for the Greater Kuala Lumpur/Klang Valley National Key Economic Area under the Economic Transformation Programme.

Najib also said the MRT project would generate 130,000 jobs during the duration of its construction which was expected to commence July next year and be complete in five to six years.

Once operational, the MRT will first ply the Sungai Buloh to Kajang route via the Kuala Lumpur city centre.

"The travel distance is about 60km and 35 MRT stations will be built along that route. Integrated stations would be built in locations where the MRT overlaps KTM Commuter, Kelana Jaya and Ampang Light Rail Transit (LRT) routes," he explained.

The Sungai Buloh-Kajang MRT will provide efficient train service to 1.2 million people, he said, adding that it would serve densely populated Kota Damansara, Mutiara Damansara, Bandar Utama, Taman Tun Dr Ismail, Bukit Damansara, Cheras, Bandar Tun Hussein Onn and Balakong.

Najib also said more than 400,000 commuters would benefit from the Sungai Buloh-Kajang MRT service daily.

The routes and locations for the MRT have yet to be finalised and value management studies would be conducted taking into account the optimum utilisation rate and maximum real estate realisation value.

As such, he said the actual project cost can only be determined once the value management studies are completed.

"The entire cost of building the project is being fine-tuned. Initial estimates made in 2009 placed the figure at about RM36 billion but this was subject to changes," Najib said.

The Prime Minister said the final cost of the project would depend on factors such as the awarding of contracts through open tender, the escalating cost of raw materials and others.

The Prime Minister also added the government decided on kicking off the project with the Sungai Buloh-Kajang route as this corridor did not have adequate rail transport service.

Indepth studies were also carried out on this route which was proposed by Syarikat Prasarana Negara Bhd in 2008 and by MMC-Gamuda Joint Venture Sdn Bhd recently.

The Sungai Buloh-Kajang MRT will built under phase one of the MRT network in the Klang Valley.

Future routes to be developed gradually over several stages have been proposed and is being studied under the Urban Public Transportation Masterplan, he said.

Asked if any new entry points projects would be unveiled, Najib said several projects would be announced in January.

By Bernama

YTL Land to launch Capers in Q1 2011

PROPERTY developer YTL Land and Development Bhd will launch its iconic condominium, "The Capers" in Sentul East in the first quarter of 2011, its customer relation's manager, Karen Tan, said.

The stunning architectural icon comprising two 36-storey towers interrupted at random with sky gardens and flanked by two five-storey low-rise duplex townhouses, will definitively be a statement of loft living, she said.

However, she could not divulge the project's gross development value as it was still being assessed but added that the iconic condonomium was set to change the face of the 100-year old former railway town that was now a draw for the young modern crowd.

Two other condominiums in the area, built by YTL Land, are "The Tamarind" and "The Saffron", completed in 2005 and 2008, respectvely.

A total of 5,000 buyers have expressed thier earnest enthusiam by registering for units in the project, she told a press conference to announce the completion of the first office project in Sentul West and Sentul East, called "d7".

"d7", is a seven-storey architecture and cutting edge duplex sky office, located on prime land, which boosts of boutique offices, retail, food and beverage outlets encased in a lush landscaped courtyard atrium area.

Karen said "d7", which was completely sold out, had appreciated by more than 40 per cent since its debut in September 2007.

The launch price for "d7" then was RM380 per square feet and today it is valued at RM650 per square feet.

"d7" will soon be connected to "d6" via a sky bridge stretched over Jalan Sentul and the elevated Sentul Skywalk will connect all of Sentul East developments in the future to provide convenience to the community.

By Bernama

Mulpha sells Hilton Melbourne for RM327mil

Hilton Melbourne Airport Hotel

PETALING JAYA: Mulpha International Bhd will use the RM327mil proceeds from the sale of its Hilton Melbourne Airport Hotel to repay its debt levels unless new investment opportunities arise.

Executive chairman Lee Seng Huang, in an e-mail reply to questions from StarBiz, explained: While we have no current use of the proceeds, we will repay our outstanding facilities as much as possible. But if and when an opportunity comes up, we can redraw our loan facilities to make an acquisition. This is part of our treasury management to ensure we maximise returns on our cash resources.

In a statement to Bursa Malaysia yesterday, Mulpha said that the proceeds, if used to repay debts, could bring down the group's debt levels from RM1.5bil to RM1.18bil.

To recap, yesterday Mulpha said it's wholly-owned subsidiary Mulpha Australia Ltd, had sold the Hilton Melbourne Airport Hotel to Singapore-listed Pan Pacific Hotels Group for A$108.89 (RM337.5mil) cash, with the sale expected to be completed by the first quarter of next year.

Mulpha said the hotel was acquired in June 2004 at a cost of A$40mil (RM120mil) as part of a larger acquisition of a portfolio of properties.

The disposal of Hilton Melbourne Airport Hotel crystalises the embedded asset value in this investment which has significantly appreciated in value since the acquisition in 2004. During this time, the hotel performed exceptionally well and has won numerous awards. The sale will result in a one-off pre-tax gain of A$77mil (RM238.6mil) for the group, Lee said in a statement.

The Hilton Melbourne Airport Hotel is a six-level, four-and-a-half star hotel comprising 276 rooms on a 6,630 sq m land.

Mulpha other assets in Australia include the five-star InterContinental Sydney, a resort-styled property development called Sanctuary Cove in northern Gold Coast and Hayman, a five-star private island destination on the Great Barrier Reef.

Mulpha also owns 25% of Australian-listed FKP Property Group, the largest private owner/operator of retirement villages in Australia and New Zealand. All these assets were acquired by Mulpha Australia between 2002 and 2004.

FKP and Mupha were recently in the news in Australia over rumours that the former's second-largest shareholder, Stockland a leading Australian property developer was seeking to take over FKP.

Lee had then said that Mulpha was not keen on selling its shares in FKP as there was still a lot of upside potential in it. In an earlier interview with StarBiz, Lee also said that Mulpha was inclined to reinvest its profits.

Mulpha's investment philosophy is to maximise the value of its assets and recycle that money into other assets that can generate more value,'' Lee said.

By The Star

Foreign interest in high-end KL condos set to grow

FOREIGN interest in high-end condominiums in Kuala Lumpur will accelerate next year with the impact from Economic Transformation Programme's Greater Kuala Lumpur plan, property market players said.

The economic crisis in the past two years had seen a dip in foreign interest leading to a 30 per cent drop in prices.

"Going forward, we expect a return in buyer interest from Singapore, Hong Kong, Indonesia and more recently from the Middle East," said Eric Y.H. Ooi, organising chairman of the forthcoming Fourth Malaysian Property Summit at a briefing yesterday.

Prices of these high-end units in the city centre, ranging from RM1 million and RM2 million, have caught up with previous peak levels.

Foreign ownership to local ownership, which was at 30:70 per cent ratio, is expected to increase.

"Come 2011 we will be able to see whether foreign interest will be better than the past two years or to the peak in 2007/2008 when it was 50:50 per cent ratio," Ooi said, adding that there had been drop in interest from European investors.

Ooi, who is also managing director of Knight Frank Malaysia, described the Malaysian property market scene as probably one of the most attractive in the region with fewer number of ownership restrictions.

Foreign investors are attracted to the higher yield from these high rise investments at 5 per cent compared to landed properties, which provide between 2 to 3 per cent yield.

He said it would be interesting to see the property market scene when the second-tier Chinese investors from the mainland are allowed to purchase overseas properties. Already there has been a spike of Chinese interest in properties elsewhere in Australia and Singapore.

Past president of the Association of Valuers, Property Managers, Estate Agents and Property Consultants in the Private Sector Malaysia James Wong expects the inflow of foreign buyers to increase in 2012 with the implementation of the ETP.

"With the Greater KL and billions of ringgit in the MRT (mass rail transit) and LRT projects, we can expect to see an influx of expatriate population as seen during the last boom when the Petronas Twin Towers was taking shape," Wong said.

He added that unlike China and Singapore, Malaysia is not expected to see property asset bubble in the foreseeable future.

Wong also expects non-performing loans ratio (NPLs) to go up in the first quarter of 2011 although not at alarming rates.

He attributed it to the 5 to 10 per cent easy down payment scheme to purchase properties.

The Fourth Malaysian Property Summit organised by PEPS will be held at the Sime Darby Convention Centre in Kuala Lumpur on January 18.

It will have an overview of the property market performance and outlook for the office market, retail market, industrial market, high end condominium and REITs.

PEPS president Choy Yue Kwong said the property summit is also relevant to those who wonder whether it is the right time to sell their properties for alternative investments or right time to buy or invest or do nothing and wait for property prices to appreciate further.

By Business Times

Freehold serviced apartments in the middle of the city

Green living: The sitting room in the studio showhouse unit of VUE Residences Serviced Suites.

If you are looking for an abode that offers chic lifestyle amid tall skyscrapers, then look no further than the VUE Residences Serviced Suites located along Jalan Pahang, Kuala Lumpur.

Developed by Prinsiptek Corporation Berhad (PCB), the freehold project comprises 23-storey with a roof garden/sky garden on the 24th floor. The first to seventh floors are multi-level carparks where residents are entitled to a parking bay per unit. There are 340 car park bays.

PCB group managing director Datuk Foo Chu Jong said the project is surrounded by various prominent landmarks like the Suria KLCC, Pavilion Shopping Centre, Titiwangsa Lake Garden, KPJ Tawakal Specialist Centre, Prince Court Medical centre, Istanan Budaya, and the National Art Gallery and it just five minutes away from the Chow Kit monorail station and Titiwangsa LRT station.

With 72 units, every floor has a combination of four models ranging from 500 sqft studio units to the bigger two-roomed units and the 1003 sqft three-roomed units.

“There is an indoor lap pool, gymnasium and a 24-hour security to give residents a peace of mind” added Foo.

Prices range from RM370,000 to RM772,000 and the project is expected to be completed by Dec 2013.

PCB’s other notable projects are The Prince in Bangkok, Section 8 Bandar Baru Bangi, Serdang Perdana Sky Villas, Ampang Prima Condominium and Section 7 Shah Alam.

By The Star

SPNB to sell 6,300 houses in 2011

Syarikat Perumahan Negara Bhd (SPNB), a wholly-owned subsidiary of the Minister of Finance Incorporated (Mof Inc.), has targeted to sell 6,300 houses next year.

"This year, we succeeded in selling about 3,000 units with a total value of around RM400 million," its managing director, Dr Sr Kamarul Rashdan Salleh told reporters here today.

"SPNB is confident that sales next year will double as are going to sell in cooperation with Cagamas Berhad (Cagamas), while offering an attractive package, including, a discount of between 10-30 per cent - depending on the location - along with free legal services.

SPNB chairman Datuk Ir Idris Haron explained that through the cooperation with Cagamas, buyers with an income of RM3,000 and below, will be able to own a RM220,000 house without having to making a downpayment.

"The sale also involves the participation of the Malaysia Building Society Bhd and Bank Simpanan Nasional," he said.

Meanwhile, under the Affordable Homes Ownership Programme (RMM), SPNB is developing 33 projects involving 35,000 units of houses throughout Malaysia and of this, six will be completed next year.

"We are also starting four new projects involving 1,200 units of houses in Kedah, Selangor, Johor and Sabah.These will begin in the second quarter of next year," Kamarul explained.

SPNB, has since 2001, been undertaking the rehabilitation of abandoned housing projects on the instruction of the Ministry of Housing and Local Government.

"However, from March this year,SPNB has not received any new instruction from the Ministry to manage abandoned housing projects.

"Still, if SPNB is asked to assist in rehabilitating abandoned projects, we will not reject the request," Idris said.

To date, SPNB has successfully rehabilitated 77 projects involving 24,326 units at a development cost of RM480 million throughout the country.

Commenting on reports that SPNB had failed to implement the Taman Anggerik Fasa 2, Senawang, project, Idris clarified that it was under the National Housing Board (JPN).

SPNB, he added, would be discussing the issue with the JPN.
SPNB, today,launched the Helpful, Informative, Friendly,Immediate (HIFI)Work Culture Programme at its headquarters here.

The programme is an initiative to transform SPNB into a committed company with an emphasis on customers.

By Bernama

PEPS: Govt must ensure homes remain affordable for average income earners

KUALA LUMPUR: There should be a national housing policy for affordable homes, said Datuk Mani Usilappan, who is council member the Association of Valuers, Property Managers, Estate Agents and Property Consultants in the Private Sector Malaysia (PEPS).

He said it was timely that such a policy be implemented to ensure homes remain affordable to the mainstream home buyers.

Mani, who is also advisor to PEPS organising committee, said housing, especially in prime locations, were becoming too costly for average income earners.


Datuk Mani Usilappan ... ‘It is difficult for property developers to resolve this issue by themselves.’

There is need for the Government to implement a national housing policy, particularly for this group of people who represent the bulk of Malaysians, he said at a media briefing on the 4th Malaysian Property Summit 2011 yesterday.

Mani said perhaps the national housing policy could include the different categories of the property market, including the affluent segment. It is difficult for property developers to resolve this issue (affordable homes for the masses) by themselves, he said.

PEPS organising chairman Eric Ooi concurred with Mani, adding that while the overall outlook of the Malaysian property sector is positive, there is a need to ensure affordable housing is available to mainstream home buyers.

He acknowledged there was a growing number of young people (35 years and below) and young couples who were finding it difficult to own a home. Studies show the average home in the Klang Valley costs about RM400,000, so it would be quite impossible for these people to own one, he said.

On foreigners snapping up these homes, Ooi said it was more a perception than reality as the majority of foreigners tended to buy residential properties in prime locations that can cost RM1mil or more.

We don't see this as an issue, he said, noting that the Government had plans to raise the income levels of Malaysians over time by improving productivity.

PEPS past president James Wong said the Government had a significant role to play to ensure affordable housing was available to the masses. The authorities have to ensure land and funds are available for such housing projects and developers are give sufficient incentives to build these homes, he said.

The 4th Malaysian Property Summit 2011 will be held on Jan 18 at the Sime Darby Convention Centre.

By The Star

Al-'Aqar KPJ REIT gets shareholders nod

Al-'Aqar KPJ REIT, the first and largest Islamic Healthcare REIT in Malaysia, has got the nod from its shareholders for proposed acquisitions at its Extraordinary General Meeting (EGM) today.

Al-'Aqar KPJ REIT has proposed to acquire the entire interest in Bandar Baru Klang Specialist Hospital Building in Klang, Kluang Utama Specialist Hospital Building, Kluang, Johor and Rumah Sakit Bumi Serpong Damai Building in Jakarta, Indonesia, from the subsidiaries of KPJ Healthcare Bhd.

This is in addition to the Rumah Sakit Medika Permata Hijau Building in Jakarta, Indonesia, from PT Khidmat Perawatan Jasa Medika, a subsidiary of Johor Corporation.

In a statement here today, the company said it has proposed to acquire the above properties for a total cash consideration of RM159.910 million to be satisfied partly by RM104.402 million cash and partly by the issuance of 56,641,000 new units in Al-'Aqar KPJ REIT at an issue price of RM0.98 per unit.

Al-'Aqar KPJ REIT will seek listing of and quotation for its consideration units of 56,641,000 on the Main Board of Bursa Securities.

It said this will bring the total enlarged unit capital of the Al-'Aqar KPJ REIT after the proposed acquisitions to 636,808,000 units and also from the existing 18 hospital to 22 hospital buildings, one nursing college and also the Selesa Hotel and Metropolis Tower.

It also brings the total number of properties to 24 - 22 in Malaysia and two in Jakarta. The proposed acquisition is expected to be accretive to Al-'Aqar KPJ REIT''s distributable income going forward.

Upon completion of the proposed acquisitions, the enlarged total asset value will be approximately more than RM1.2 billion.

By Bernama

S P Setia targets RM3 billion sales in 2011

S P Setia will be launching an integrated green commercial development called KL Eco City

S P Setia Berhad recently announced that it targets to achieve RM3 billion sales in FY2011. This is on the back of its new sales record of RM2.31 billion for FY2010 ending 31 October which represented a 40% increase from its previous FY2009 record of RM1.65 billion.

FY2010 is the third consecutive year of increase in the Group's new sales, and the seventh consecutive year since FY2004 that total Group sales have exceeded the RM1 billion mark.

The Group achieved a net profit of RM251.8 million on the back of revenue totalling RM1.7 billion in FY2010, representing an increase of 47% and 24% respectively over the results for the preceding year.

President and chief executive officer Tan Sri Liew Kee Sin said the sales numbers are a testament of the Group's strong branding and product desirability in all its developments and across market segments.

"For FY2011, we expect all our existing projects in the Klang Valley, Johor Bahru and Penang to continue to do well. In addition, we will shortly be launching KL Eco City, our exciting new integrated green commercial development opposite Mid Valley City which should also contribute strongly towards the targeted RM3 billion new sales."

By The Star

90pc of Naza-TTDI's 'Viola' snapped up on launch day itself

NAZA-TTDI said some 90 per cent of its 'Viola' residential project in Alam Impian, Shah Alam, were booked on the launch day itself.

The latest offering follows the succesful launch of TTDI Alam Impian's "Spira", the township's first phase of residential development which completely sold out in only 3 days.

Naza-TTDI said the "Viola" will raise further the benchmark for modern living.

The latest project marks the developer's second residential development phase for its Alam Impian township that promises to offer home owners a unique urban living experience that's ideal for the modern family.

Setting itself apart from conventional townships, this new precinct will bear four different elegant contemporary home layouts encircling pockets of parks to provide residents with wholesome and vibrant community living.

The Viola offers several designs and layout plans with spacious built up areas ranging from 1,952 sq ft to 3,116 sq ft.

It is located strategically in Shah Alam and is accessible via several highways such as, NKVE, KESAS, ELITE as well as the newly completed LKSA highway.

"We are certain that with Viola, we are one step closer to reaching our aim of making TTDI Alam Impian the township of choice for growing modern families in and around Shah Alam," group managing director SM Faliq SM Nasimuddin said in a statement yesterday.

By Business Times

MRCB, IJM Land extend validity of MoU to merge

KUALA LUMPUR: Malaysian Resources Corp Bhd (MRCB) and IJM Land Bhd have extended the validity of their memorandum of understanding to merge and create the country's second-largest property company to Dec 29 from Dec 14 previously.

The companies said in separate statements yesterday that both parties were still in the midst of finalising the terms and conditions of the definitive merger agreement for the proposed merger.

Last month, MRCB announced it would team up with IJM Land under a newly incorporated company (Newco). The proposal would involve a share swap of MRCB and IJM Land with new shares in the Newco.

The Newco is expected to take over the listing status of both companies in the second half of next year with an implied market capitalisation of RM7bil and net asset of over RM3bil, which will make it the second-largest property developer on the exchange.

By The Star

Funds for the building allocated over the years

The allocation to rebuild the Petaling Jaya mayor’s official residence was first included in the 2008 Budget, with RM871,900 budgeted but was not used.

A total of RM900,000 was thus side aside for the purpose in the following year’s budget and that raised some eyebrows. An additional RM600,000 was allocated in Budget 2010 due to an increase in the cost of building materials.

Some questioned if the expense was necessary but the full board approved it eventually as the official residence had been torn down due to being termiteinfested. The site was left idle for years and became an eyesore.

All Petaling Jaya Residents Association (Apac) chairman Johan Tung Abdullah said the money spent on the mayor’s official residence was “very generous” but declined to elaborate.

“Now that you have a huge mansion there, it is important for the Petaling Jaya City Council to maintain the asset properly and ensure there is no recurrence of termite infestation. We do not want to see another RM1.5mil allocated for the same purpose again a few years down the road,” he said.

Former Apac chairman Liew Wei Beng, who was in office when the issue was first raised, said the allocation was fair but that the council could have been more transparent in how they handled the money.

“It is fair that the mayor be provided with a proper residence to show his status and the amount is not exorbitant.

“Still, the council was not transparent throughout the process. The allocations budgeted for different years were rather confusing. Also, questions arise over whether there was an open tender? Was it done properly? We did not know,” he said.

MBPJ councillor Richard Yeoh, who is the former executive director of Transparency International, said he did not see a problem in the construction of the new residence.

“The mayor’s residence had been there for about five decades but it fell into a state of disrepair due to termites. Currently, spending RM1.5mil for a house for the mayor is reasonable as there should be an official residence for the mayor to host visitors or to have official functions.

He added that the mayor’s residence was a public asset and proposed that the community and councillors be allowed to use it for public events.

By The Star

Bina Goodyear eyes 2 more contracts

Property and construction firm, Bina Goodyear Bhd, aims to secure two more new contracts and seek property development investment opportunities.

Its managing director, Wong Chick Wai, said currently, the group's outstanding construction contracts stood at over RM400 million.

"We are hoping to secure the projects from both government and private sectors," he told reporters after the company's annual general meeting here today.

In the past six months, he said, Bina Goodyear has secured two contracts valued at over RM160 million. Wong said the implementation of Economic Transformation Programme would boost the construction sector.

"The prospect of the sector is good and the company will continue to actively tender for local construction projects," he said.

For the financial year ended June 30, 2010, Bina Goodyear's pre-tax loss was reduced to RM8.95 million from RM24.03 million in the same period of 2009.

Its revenue, however, rose by 1.5 per cent to RM338.684 million from RM333.764 million previously.

By Bernama

Naza TTDI takes modern living to greater heights at TTDI Alam Impian

Latest township by NAZA TTDI - VIOLA.

Following the successful launch of TTDI Alam Impian’s SPIRA, the township’s first phase of residential development which completely sold out in only three days, NAZA TTDI is now geared to further raise the benchmark of modern living with the unveiling of VIOLA.

The launch of VIOLA marks the developer’s second residential development phase for its Alam Impian township that promises to offer home owners a unique urban living experience that’s ideal for the modern family. Setting itself apart from conventional townships, this new precinct will bear four different elegant contemporary home layouts encircling pockets of parks to provide residents with wholesome and vibrant community living.

In conjunction with the unveiling of TTDI Alam Impian’s Viola held recently, close to 200 property enthusiasts attended the event where almost 95% of NAZA TTDI’s VIOLA homes have been booked by eager home buyers, all in just one day.

Offering several designs and layout plans, the VIOLA homes have spacious built up areas ranging from 1,952sq ft to 3,116sq ft. Located strategically in Shah Alam, these VIOLA homes are also easily accessible via several highways such as, NKVE, KESAS, ELITE as well as the newly completed LKSA highway.

According to group managing director SM Faliq SM Nasimuddin, “Tremendous amount of thought and research have gone into the planning and design of these homes to complement the whole concept of TTDI Alam Impian. Our aim as a passionate and innovative developer is to create a sanctuary for home owners that offers the convenience of contemporary living with the warmth and familiarity of a traditional neighbourhood. We are certain that with VIOLA, we are one step closer to reaching our aim of making TTDI Alam Impian the township of choice for growing modern families in and around Shah Alam.”

Faliq further adds that he is encouraged by the overwhelming response received during the launch and several NAZA TTDI launches that came before it. “It is a testament to the strength of our brand and of the products we put forward. We are always looking for ways and means to better ourselves.

This is reflected in what we offer to our purchasers. Customer satisfaction is what we stress upon in this organisation. In any development we embark upon, we also take into consideration what can be benefitted by the community there and the surrounding areas. I promise that NAZA TTDI is a developer that delivers quality and value, each and every time. What I can say is look out for our upcoming launches!”

By The Star

Penang property a goldmine

Property in Penang will continue to remain a favourite choice among investors as it is expected to show returns that are above the national average.

Henry Butcher Malaysia (Penang) Sdn Bhd director Dr Jason Teoh said property investment was generally perceived to have a longer term horizon as it was not so volatile compared to stocks.

He said investing in property had proven to be a good hedge against inflation because the returns ge-nerated were higher than the Con-sumer Price Index.

“In fact, seasoned real estate in-vestors from Hong Kong and Singa-pore have predicted that real value will increase over the next few years.

“Among the reasons is Malaysia’s recent positioning in the top 10 list of the world’s most competitive countries,” he said in a statement in conjunction with the official launch of the lifestyle suites, 118@Island Plaza, at level seven of Island Plaza, Penang, this weekend.

The public is invited to the sales gallery to view the show unit between 10am and 6pm on Satur-day and Sunday.

Response to the initial sales preview had been overwhelming with 50% of the 106 suites sold prior to the official launch.

Henry Butcher Malaysia (Penang) is the sole and exclusive marketing consultant for the contemporary suites owned by Omega Moments Sdn Bhd.

Teoh said foreign real estate investors had complimented Pe-nang’s progress in offering some of the most attractive product designs, but at prices which were only a fraction of those in their home countries.

“Penang’s real estate market can now be benchmarked against some of the best schemes in Kuala Lumpur and Singapore,” he said.

He added that Penang, being voted among the eighth most liveable cities in Asia, on par with KL and Bangkok by ECA International, had created further excitement, especially among foreigners seeking a second home.

118@Island Plaza is the first alteration and amendment development of its kind, which when completed, will offer much demanded housing and office units for professionals and expatriates.

Each unit, ranging from 500 sq ft to 1,160 sq ft, is thoughtfully conceptualised and designed as part of Island Plaza’s remodelling programme to bring in greater vi- brancy.

For enquiries, contact Henry Butcher Malaysia (Penang) Sdn Bhd at 04-2298999.

By The Star