BRDB sets benchmark

6 CapSquare’s strategic location offers commanding views of the KL city skyline including the Petronas Twin Towers and the KL Tower.

In recent years, the emphasis on the property market in and around the Klang Valley has been more than just about having a roof over one's head. The magic word is lifestyle and developers have been overzealously throwing in features which include the elements of luxury into their projects.

Bandar Raya Developments Bhd (BRDB) is one of them. Says chief marketing officer K.C. Chong: “BRDB will not enter a location to fit into the (prevailing) standard of that location. Instead, we will carry our own standard that fits with our image.”

Chong says he is working towards all its projects having an international standard. He does not equate international standards with lifestyle offerings. It is just that best international practices include certain elements of functionality and luxury.

Before the year is over, BRDB will unveil its condominium development in Dutamas, Kuala Lumpur near the Jalan Duta area. The company is set to create a new benchmark in that location in terms of design, quality and pricing. He is quick to add that the new project by BRDB will not have the Dutamas pricing. Properties in the Dutamas area is about half that of Mont' Kiara properties on a per-sq-ft basis. The Dutamas pricing is RM300-RM350 per sq ft today, while adjacent Mont' Kiara-Solaris is about RM550 per sq ft, according to a realtor. Newer projects there cost about RM600-RM630 per sq ft.

Yet to be named, the North Kiara Phase 1 development will have a gross development value of about RM400mil with 298 units. That project will have two phases with a total of 698 units with average build-up of about 1,400 sq ft. Show units will be built in Menerung, Bangsar where it first offered for sale One Menerung, says Chong. It will be put on sale by the middle of this year, says Chong.

The company's second high-end project is in Taman Duta, Kuala Lumpur. Still in its planning and design stage, this low-rise condominium project on about 12 acres of sheer greenery and forestry will be unveiled next year.

Chong declined to reveal more other than to emphasise the point that both these developments will feature the brand image of the company, as with its most luxurious development to date, The Troika, located in the vicinity of KLCC city centre.

Chong says BRDB is investing in a series of enhancements for The Troika, a project by world renowned architect Sir Norman Forster who built London's Millennium Bridge, besides other projects around the world. An outdoor bar and a larger area for children are in the works. The lobby will also be given a new image and the minimalist ambience done away with.

“It will be different after this series of investments,” says Chong.

The KLCC location, he says, will always remain iconic. “The Petronas Twin Towers is very recognisable. It is just unfortunate that along with other locations, it suffered during the last financial crisis,” he says, adding that although there is a perception that prices are high there, to a great extent, prices have stabilised over the last year.

“That location is revered, like New York's Central Park and London's Hyde Park,” he says.

Once the period of enhancement is over, Chong promises that The Troika, which comes with retail on lower floors, will be a very attractive proposition. The details of that enhancement programme is currently being planned and scrutinised. Currently, there are a lot of vacant units in that location with rental rates of about RM4 per sq ft. The huge supply is a legacy of the euphoria of 2006/2007 when developers jumped on the KLCC bandwagon and added their footprint there.

While The Troika will add glitter and glam to its image as a developer, in time to come, and if the design and enhancement of that location is on the cards in line with the government's economic transformation programme to make Kuala Lumpur more liveable its real jewel may actually be CapSquare, located just a few minutes drive away from KLCC. That triangle-shaped 15.2-acre development is bordered by Jalan Munshi Abdullah, Jalan Dang Wangi and Jalan Ampang. The Klang River parallels Jalan Ampang.

There's a great deal of history and old Kuala Lumpur that CapSquare could leverage on. “It's building the new based on the foundation of the past. From CapSquare, one can easily discover the neighbourhood of Masjid India an enclave of Indian shops reminiscent of a bazaar with some of the best Indian food in town or the antiquated Malay houses of Kampung Baru with their well-tended gardens.

“Colourful Chinatown, a well-known bargain hunter's paradise is only a few subway stops away. But KL is not short of the 21st century either. Here post-modern architecture may sit beside gorgeous colonial buildings and it is on this plane that the development of CapSquare fits into this puzzle of the old and new.”

Consider the following: Across Jalan Ampang is the Bukit Nenas forest reserve. Across from Jalan Munshi Abdullah is the old shopping district of Jalan Tunku Abdul Rahman that goes back decades which leads to the old Masjid Jamek Mosque and upon which the city of Kuala Lumpur took shape in the 19th century. A lot of history there.

Then there is the Klang River which may come under the Government's river of life project, a beautification programme to clean up the river in order to enhance real estate value on both sides of it. Then, there is Jalan Ampang, another piece of history there.

“There are certainly a lot of linkages that CapSquare can leverage on. The thing is to integrate all these with CapSquare and its cobblestone street,” he says.

While it is possible to take a walk from CapSquare to the KLCC, the heat and humidity may be a drawback today. What is needed, says Chong, is for the outer peripheral and within CapSquare itself is to have pockets or clusters of greenery to provide a green canopy to make it a pleasant walk into the old parts of Kuala Lumpur. That would be ideal and runs with what botanist Dr Francis Ng says about Kuala Lumpur's liveability.

Says botanist Dr Francis Ng during an interview on how to make the city more liveable: “Plant clusters of three to five trees, of different species, here and there within Kuala Lumpur and its various developments and before you know it, you have a series of connecting corridors of green.” Ng is the former deputy director-general of the Forest Research Institute of Malaysia .

This will mean more investments but it will bring the diversity that the tropics offers into CapSquare, which today, is pretty much concrete.

Says Chong: “Green canopies will integrate CapSquare with our surrounding areas and beyond, right up to the KLCC vicinity.”

At the moment, Chong is focusing on what is within CapSquare. 6CapSquare, with a GDV of RM241mil, is the second residential development there; the first is CapSquare Residences. Prices for this second development start from RM950 per sq ft. Sizes range from 1,000 sq ft to 4,400 sq ft.

Beyond Kuala Lumpur, BRDB also has a presence in Johor Baru. This year, it started selling The Straits View Residences a landed, gated and guarded development in the south-east sector of Bandar Baru Permas Jaya, Johor Baru. With a gross development value of RM230mil, this project involves a 35-acre freehold strata land parcel within Permas Jaya.

The semi-detached units are priced from RM1.3mil while the bungalows start at RM2.4mil. Phases 1 and 2 enjoyed brisk sales and based on that, Phase 3 is now open for sale. Chong says this is Johor Baru's first strata-titled project.

By The Star

To buy a home or wait

FIRST time home buyers who are daunted by soaring prices of residential properties in the Klang Valley should not wait in the hope of a softening in the property market.

Prospective new home buyers may want to take note of rising construction costs that are driving up property prices, as well as possible further interest rate hikes in view of the consumer price inflation hitting a 22-month high of 2.9% in February.

On Wednesday, SP Setia Bhd president and chief executive officer Tan Sri Liew Kee Sin said he expected home prices to rise by at least 10% this year, depending on location, to reflect higher construction costs.

“Property prices will not drop as the costs do not allow this anymore,” said Liew during the Invest Malaysia 2011 conference in Kuala Lumpur.

Meanwhile, a recent report from Hwang DBS Vickers Research says that as a proven inflation hedge, property should remain in demand even with potential interest rate hikes.

The report says while it is believed that the 70% loan-to-value cap managed to cap speculative activities to a certain extent, strong underlying demand from first-second home owners and upgraders has continued to support recent property sales, even at new benchmark prices.

The 70% loan-to-value ratio satisfies Bank Negara's ruling (announced last November) which requires buyers of third and subsequent residential properties to fork out 30% downpayment.

Also, a recent survey by the Malaysian Institute of Economic Research (Mier) on residential property in the country says an astounding 61% of housing developers who responded to the survey had adjusted their prices of their residential properties upwards in the first quarter of this year the highest proportion garnered since the third quarter of 2008.

None of the respondents in the survey had lowered their prices.

However, the Mier survey report concludes that pressure exerted by high costs of raw raw materials, fears of rising oil prices, and the interest rate factor could all combine and impact negatively on the sector in the coming months.

“This is likely to impinge on the future growth of outlying areas, and may also dampen the revival process of developments

that are currently suffering from low take-up rates, low population inflow and an overhang problem,” said the report.

Short-term outlook

The Mier report pointed out that “the short-term outlook for the residential property sector looks calm generally”.

Financial coaches and planners contacted by StarBizWeek also say that first time home buyers should not sit on the sidelines.

“There is no certainty that if you wait, you can get a cheaper residential unit. A property loan is long term. Even half a percentage point rise in interest rate will have a major effect for the home buyer,” said CTLA Financial Planners Sdn Bhd managing director Mike Lee.

Whitman Independent Advisors Sdn Bhd managing director Yap Ming Hui shares a similar opinion.

However, Yap cautions, “Waiting for a few months before making a buying decision may not make much difference in the purchasing costs, depending on the location and type of property the buyer is looking at.”

Carol Yip, chief executive officer of Abacus Advisory Sdn Bhd, also advises home buyers not to be too hasty.

“They must always look at their own financial positions and the affordability factor,” said Yip.

By The Star

Australian developer The King comes to town

KUALA LUMPUR: Australian developer The King Property Group has set up a base in Malaysia to sell its properties to local investors.



Its director Edwen Yew said the group is venturing into Asia to build its brand and raise its profile to prepare for an initial public offering (IPO) in Hong Kong in three years.

The King Group is looking at raising more than US$1 billion (RM3.02 billion) from the IPO to carry out property development projects in Australia.

The group, which has been in business for over 20 years, is a builder of landed and high-rise residential and commercial properties in Melbourne and Sydney.

It has 10 ongoing residential projects in Melbourne, worth up to A$400 million (RM1.27 billion) each, which it intends to sell here through its Malaysian arm, OZ Property Group Sdn Bhd.

Each property is priced between A$430,000 (RM1.37 million) and A$650,000 (RM2.07 million) each.

OZ Property will assist Malaysians to buy the properties and secure up to 80 per cent loan. The company has tied up with 79 real estate agencies in Malaysia to sell the properties, starting this month, Yew said.

Yew, who is also the chief executive officer for OZ Property, said he is upbeat on Malaysia.

"We have a lot of cash-rich Malaysian investors who come to us in Australia to buy our properties. Now, they don't have to travel far to make their purchases," he said at the soft opening of OZ Property in Sri Hartamas here yesterday.

By Business Times

South Beach acquisition to boost IOI’s reputation

NEWS that IOI Corp Bhd was acquiring a 49.9% stake in Singapore's South Beach project didn't come as a surprise to the market, particularly since the group had previously mentioned its intentions to further expand into Singapore's property market.

This acquisition will add to IOI Corp's property portfolio in Singapore which now includes its joint venture with Singapore's Ho Bee Group for two condominium developments in Sentosa Cove and the development of a condo project in Balestier Road.

Most analysts are generally neutral on this move, more so from the earnings perspective. They, however, see synergies for IOI Corp to further entrench its reputation as a sound property developer in Singapore.

Analysts see IOI Corp gaining valuable experience through its joint venture with its other 51.1% shareholder, City Developments Ltd, which is a reputable property developer in Singapore.

The deal

Over the week, IOI Corp announced that it has acquired a 49.9% interest in the South Beach project in Singapore through a restructuring exercise. The 51.1% shareholder of South Beach is City Developments.

IOI Corp had bought a 33.3% stake in the project from Elad Group Singapore Pte Ltd for S$173.8mil (RM417mil).

Subsequently, IOI Corp had injected the 33.3% stake into Scottsdale Properties Pte Ltd. Scottsdale Properties now wholly owns South Beach.

IOI Corp then paid S$115mil (RM276mil) for a 49.9% stake in Scottsdale and will advance S$28mil in the form of a shareholder's loan.

IOI Corp paid around S$316.3mil (RM759.1mil) for the stake (including Elad Group's 33.33% stake in South Beach Consortium) and expects to contribute further equity of around S$500mil in Scottsdale.

“IOI and City Developments may be required to further contribute equity of S$500mil each to redeem existing mezzanine notes of the project, working capital and part-finance the construction of South Beach,” says AmResearch analyst Gan Huey Ling.

The group indicated that in total, it will invest up to S$816.8mil (RM1.96bil) in the project. In total, analysts estimate that IOI paid S$317mil (RM761mil) for a 49.9% stake in the South Beach project.

The group's net gearing stood at 11.2% as at end Dec 2010. Net debt was RM1.28bil while its cash position was RM3.6bil.

While AmResearch's Gan is neutral over IOI's investment in South Beach, she says that risk of the project is mitigated by the group's partner, which has an established track record in the property development sector in Singapore.

“The good location of the project should encourage demand. South Beach is located between Raffles Hotel and Suntec City and next to the mass rapid transit station,” says Gan.

She points out that based on an operating margin of 20% and assuming that the project's total earnings is recognised over six years, the project could increase IOI's bottomline by 3%-5%. Gan continues to like IOI for its low-cost plantation operations.

Iconic development

“We also believe that there is potential for the group to restructure. A listing of the manufacturing or property division would transform the group into a pure plantation company,” she adds.

CIMB Research analyst Ivy Ng says that the acquisition represents an opportunity for IOI Corp to be involved in an iconic development in downtown Singapore with sizeable office, hotel, residential and retail components.

“The substantial size and location of the development, which is in close proximity to landmarks such as the Suntec City Convention Centre and Raffles Hotel, will make this development one of the most popular and prominent mixed-use developments in downtown Singapore,” says Ng.

Ng says IOI Corp will gain in stature as a player in the Singapore property market and could see earnings enhancement given the relatively attractive acquisition cost. This is however partially offset by concerns over the group's increasing exposure to the property sector, which may dilute the price earnings rating accorded to the group.

Despite the strategic location and the fact that South Beach is likely the last major iconic site in the Civic District, Hong Leong Research remains neutral on the latest development, given the huge investment cost involved.

“The Singaporean government's measure to cool its property sector may in turn affect demand and hence the pricing of this development,” it added.

Subdued view

Other analysts are somewhat concerned over the subdued view of the Singapore property market and the group's mixed track record in Singapore property investment.

Meanwhile, the S$173.8mil price tag for the 33.33% stake in South Beach Consortium is attractive as it represents a 23.5% discount to South Beach Consortium's net asset value of S$681.8mil as at 31 Dec 2010.

“Although the price is 12% higher than what CityDev paid for a similar 33.3% stake bought from another party, we believe that the acquisition price is fair,” says Ng.

According to management, its effective land cost for this project is quite close to the initial bid price of S$1,069psf for potential gross floor area in 2007 due to the accumulated interests on the loan.

Hong Leong Research also believes that IOI would not have issue funding the acquisition, given its healthy balance sheet.

The South Beach project is a mixed use development on Singapore's Beach Road. The land is strategically located between Raffles Hotel and Suntec City and is next to the Esplanade MRT station. The total land area is 376,295 sq ft and has a leasehold tenure of 99 years.

Based on reports, the South Beach development will have 171 apartments, 560 hotel rooms, 632,164 sq ft of office space and 158,014 sq ft of retail space.

In Singapore, City Development has an impressive track record, having built more than 22,000 luxurious and quality homes. As one of the biggest landlords in Singapore, it owns over 6mil sq ft of lettable office, industrial, retail and residential space.

It also boasts one of the largest landbanks among property developers, with over 3.5mil sq ft that has the potential of being developed into over 7mil sq. ft of gross floor area.

By The Star

Don’t circumvent Bank Negara’s ruling

LAST November, Bank Negara introduced a macroprudential measure to curb speculation in the property market. Buyers of third and subsequent properties were required to pay a minimum downpayment of 30% of the purchase price.

Four months into that ruling, Bank Negara's monthly statistical bulletin showed that for four consecutive months since November, the number of loan applications for residential property has reduced. Observers and analysts say a minimum of six months are needed to conclude if this anti-speculation measure is working.

Nevertheless, there is reason to believe that there are property buyers who are trying to negotiate around this ruling with the help of bank officers and agents because they want to pay a downpayment of only 10%.

How widespread this is today is just a matter of conjecture. Bank officers are not likely to confirm this. Banks will also want to lend out as much as possible. Agents will want to protect their own interest as they want to sell as many properties as possible. The same goes for the developers.

There are different ways to circumvent this ruling. The saying, where there's a will, there's a way certainly seems to ring true.

On the part of the buyer, it is learned that some are topping up the difference with a personal or a business loan. Another way to do it is to buy the property with a sibling or to use the name of children who are working. The combination of two salaries results in a larger loan when only one person may be actually paying for the mortgage. The risk, therefore, falls on the borrower who will be responsible for the mortgage.

Group chief economist at RAM Holdings Bhd Dr Yeah Kim Leng says it is possible for bank officers to “structure” loans such as topping up with personal loans to circumvent the 70:30 ruling particularly when they are convinced about the customers' credit profile and repayment ability.

He says such overlending risk is likely to be isolated given that it is detectable through the centralised credit information system used by all banks. Obviously, if the circumvention becomes prevalent, it will dent the effectiveness of Bank Negara's macroprudential measure to curb excessive speculation in the property market. Nevertheless, the banking institutions and the regulators have to be alert against such practices as isolated problems tend to become system-wide when there is excess liquidity and intensifying competition in the loans market, he says.

On the part of the developer, there are also developers who are trying to negotiate around this ruling. Buoyant though the property may be, there are developers of certain segments of the property market who may find it a bit challenging to sell, coupled with the pricing they are asking as well as the location of their projects.

Because their revenue is dependent on sales and because they want to “catch” the market as quickly as possible before the situation turns, they offer a rebate as an enticement. By offering a 20% rebate on the property price, they effectively enable the purchaser to make a downpayment of 10% and have the rest in the form of a 70% loan, which meets Bank Negara's criteria.

In this case, the developer absorbs the loss while the buyer “gains” a 20% discount of the selling price. From the consumer standpoint, this is a better way rather than topping up with a personal or a business loan.

Whichever route a buyer takes, there is some element of risk involved, as with any investment. Globally, we are not out of the woods and on a national that Sarawak election is something to watch. We won't have to wait long, though. On a regional basis, inflation is running high, although Malaysia's inflation rate of 2.9% as of February is considered among the lowest in the region.

A statement by Bank Negara says the 30% downpayment requirement was put in place to curb speculative activity in the property market and to promote the continued affordability of homes for the general public.

The provision of additional financing facilities (such as personal/company loans) together with housing loans as a means to circumvent the loan-to-value ratio limit would be inconsistent with the intended objectives of the measure and is not a practice that the Central Bank considers acceptable.

Bank Negara will continue to monitor the practices of banks closely, and will act against institutions found to be facilitating or encouraging the circumvention of the measure, the statement says.

Assistant news editor Thean Lee Cheng thinks what's yours is yours. No point losing sleep trying to scheme and plan.

By The Star (by Thean Lee Cheng)

E&O aims to begin reclamation work for RM12bil Penang project

Aerial view of Seri Tanjung Pinang phase one, showing Straits Quay festive retail mall.The upcoming Quayside Seafront Condominiums is superimposed on this actual site photo.

PETALING JAYA: Eastern & Oriental Bhd (E&O) is targeting to commence reclamation work next year for 740 acres of land in Tanjong Tokong in the north-east coast of Penang for its RM12bil Seri Tanjung Pinang phase two (STP2) development.

Executive director Eric Chan said the group's subsidiary, Tanjung Pinang Development Sdn Bhd, had received the approval in principle for the masterplan of STP2 from the Jabatan Perancangan Bandar dan Desa Pulau Pinang via a letter dated April 11.

“It should take two years from the start of the land reclamation before the first project launch can be embarked upon.

“Phase two will be a mixed integrated development comprising two islands of approximately 740 acres in size. At three times the size of phase one, phase two is expected to generate RM12bil in gross development value,” Chan told StarBiz.

As in phase one, he said residential property would be the key component in STP2, besides commercial and public spaces.

“In totality, Seri Tanjung Pinang phases one and two will embrace a range of residential, commercial, recreational and leisure properties within an integrated masterplanned development.

“We expect this iconic development to ultimately redefine Penang island on the world map as a vibrant new seafront resort destination to reside, holiday, work and invest,” he added.

Chan said STP2 would take the E&O brand to the next level and support the group's aspiration to extend the brand regionally and globally.

“The development will also be a symbol of pride and progress, gaining worldwide publicity and prestige; and attract capital inflows and investment, employment and business opportunities, especially for Penang's tourism. It will complement other major projects to turn the state into a world class city and an international property destination,” he added.

In 1992, TPD was granted the exclusive right to reclaim and develop approximately 980 acres of land in Tanjong Tokong.

It has to date reclaimed and is continuing to develop phase one of the project comprising about 240 acres of land.

The total GDV for phase one of Seri Tanjung Pinang is approximately RM4bil.

The E&O group, through TPD, had sought the state's approval to reclaim the balance concession area of about 740 acres.

In a filing with Bursa Malaysia on Tuesday, E&O said while the in-principle approval was a vital step towards being able to reclaim the balance concession area, there were other steps still to be undertaken and approvals to be obtained before reclamation works could actually commence.

It said while it was too early to outline the detailed effects of the approval in respect of the masterplan or its implementation timetable, “the board of directors of E&O is of the view that in the longer term, the group will derive substantial benefits with a successful implementation of the in-principle approval.”

On the progress of Seri Tanjung Pinang phase one, Chan said more than 600 landed residential units and 217 serviced suites had already been completed and sold to date. There will also be seven condominium towers.

The landed properties include the Ariza range of courtyard and seafronting terraced houses, Avalon and Acacia semi-detached homes, and the Martinique, Skye and Abrezza villas by-the-sea.

Last February, the first tower of the 21-acre Quayside Seafront Resort Condominiums was launched and another two towers were launched in the last 12 months. The overall take-up of the launched condominiums is about 75%.

Meanwhile, the commercial area includes the Straits Quay festive seafront mall which has 270,000 sq ft of net lettable area; a 7-acre parcel of TESCO hypermarket development and a few other smaller plots.

Chan said since its soft opening last November, the Straits Quay mall had recorded a tenancy occupancy of close to 60%, comprising a myriad of marina-fronting food and beverage outlets, fashion, and lifestyle stores.

By The Star

Spacious semi-Ds for the family in Rawang

Modern and simple: An artist’s impression of the three-storey semi-detached units in Rawang.

The Puteri Height’s latest three-storey semi-detached Saffron units by Hartawan Pasific Sdn Bhd (HPSB) in Rawang is focused on space, privacy and indoor/outdoor living.

The new housing development neighbouring Bandar Country Homes and priced from RM611,000 onwards, is close to shopping facilities, hypermarket, schools, parks and playgrounds, lakes with water sports facilities, the 27-hole Tasik Puteri Golf and Country Club and the 18-hole Kundang Lakes Golf Country Club and is linked to major roadworks.

HPSB chief executive officer Low Gee Teong said these 96 semi-D units, with plot sizes from 46ft x 100ft and built-up sizes from 3,100 sq ft, offered spacious living spaces for larger families, with six bedrooms, including two master bedrooms.

The units come with contemporary finish and design.

Located on a hilltop, residents will get to enjoy a panoramic view of the city from their lanai terrace.

The interiors have also been designed to allow for natural light to stream in and the courtyard has space for four cars with auto-gate facilities.

Located just 10 minutes away from the Rawang interchange, residents will also appreciate the easy access via existing trunk roads linked to the North-South Expressway (NSE).

“From Saffron, it is a 30-minute drive to Kepong and 45 minutes to the city centre,” said Low.

This is the second phase of the development and; so far, 50% of the units have been sold.

By The Star

SP Setia to redevelop Singapore property

SP SETIA Bhd is buying the Leong Bee Court strata development in Singapore for RM159 million, and it plans to redevelop the place into a new apartment with a gross development value of RM318 million.

Work is expected to start in 2012 and finish in three years, it said in a statement to Bursa Malaysia yesterday.

Leong Bee Court sits on a parcel of freehold land of 29,436 sq ft within a matured residential enclave of Potong Pasir.

It is also within close walking distance to the Potong Pasir North East MRT Station

By Business Times

SP Setia buys site in Singapore for RM156.65mil

KUALA LUMPUR: SP Setia Bhd, through its unit SP Setia International (S) Pte Ltd, has entered into a private treaty with owners of all 27 units of Leong Bee Court to buy the site for S$65mil (RM156.65mil).

The company said in a statement yesterday it would build on the acquired site measuring 29,440 sq ft a high-rise building comprising 105 units of one, two and three-bedroom apartments and launch the project by the middle of next year.

Its president and chief executive officer Tan Sri Liew Kee Sin said the group had been carefully crafting its strategy to expand its development base to include integrated commercial-cum-high rise residential projects as well as international expansion.

“We see this as a good timing to participate in the upturn of Singapore's economy,” said Liew.

By Bernama

Mutiara Goodyear unit in Thai project

MUTIARA Goodyear Development Bhd’s unit Pembangunan Bandar Mutiara, Bangkok, Thailand.

It will subscribe for 3 million Redeemable Preferred Shares (RPS) in Agathis One Ltd.

Proceeds from the RPS will be used by Agathis to invest in a proposed joint venture development project on a 25.6 acre land area in Tambon Bang Kaew, Ampur Bang Phi, Samutprakam Province, Thailand.

The investment will enable Mutiara Goodyear to participate in a potential high growth area in Bangkok, Thailand

By Business Times

SP Setia may make foray into S'pore soon

KUALA LUMPUR: SP Setia Bhd is considering the possibility of venturing into Singapore's property market soon, says its president and chief executive Tan Sri Liew Kee Sin.



"With the breadth and depth of products that we have to offer, from townships to luxury homes and integrated commercial developments, we are well-positioned to benefit from the structural upshift in this sector," Liew told newsmen at invest Malaysia 2011 here yesterday.

The property developer is also on track to achieve its targeted RM3 billion sales this year from RM2.3 billion in 2010, backed by new project launches and the growing property market.

SP Setia's sales for the first five months of the financial year hit RM1.21 billion as at March 31.
Liew said the strong impetus provided by the government's Economic Transformation Plan, a young demographic with more people entering the house-buying age, growing income levels and a supportive banking sector augur well for the domestic property sector.

He said the group is confident that prospects for the Malaysian property market will remain robust.

"The growing confidence in the country's private sector, together with the government's stimulus, is boosting the property market," he said.

He said over the last eight months, the group has been steadily increasing its landbank in Johor and Klang Valley.

Liew said SP Setia's current active projects, including that in Penang, have a remaining gross development value (GDV) of about RM19 billion.

With the upcoming launch of its KL Eco City and Setia City, which have GDV of RM6 billion and RM10 billion respectively, coupled with three new projects in Klang Valley and Johor Baru with total GDV of RM5.5 billion, the group's project pipeline has increased to RM40.5 billion.

SP Setia, which has a current market capital of RM7.5 billion, expects to launch its venture in Melbourne, Australia, called Fulton Lane, a A$450 million (RM1.4 billion) high-rise residential development within two months.

By Business Times

SP Setia plans residential apartments in Singapore, GDV S$130m

KUALA LUMPUR: SP SETIA BHD plans to undertake a multi-storey residential apartment building at Woodsville Close in Singapore with an estimated gross development value of S$130 million.

The company said on Thursday, April 14 its subsidiary SP Setia International (S) Pte Ltd had signed a sale and purchase agreement with 27 strata units’ subsidiary proprietors at Leong Bee Court.

The acquisition would include the strata units and common property on a 0.68 acre site for S$65 million or RM159 million.

“The land is square shaped with a flat terrain which makes re-development potential very attractive. The purchaser proposes to undertake a re-development of the said land into a multi-storey residential apartment building.

“Based on the preliminary feasibility study and subject to the approvals of the relevant authorities, the proposed project is expected to have an estimated GDV of approximately S$130 million or approximately RM318 million,” it said.

By The EDGE Malaysia

Property developer has The Elements to boost earnings

The concept of The Elements project is to cater for young urbanites looking for a sanctuary within the city.

PETALING JAYA: Land & General Bhd (L&G), a property developer, expects to remain profitable in the current financial year, helped by its newly-launched joint venture project, called The Elements in Ampang.

The firm has projects with a gross development value of about RM700 million.

The property developer posted a net profit of RM29.54 million in the financial year ended March 31 2010, nearly double the RM15.31 million net profit it posted in the previous corresponding period.

Up to the nine months ended December 31 2010, the company's net profit stood at RM13.4 million.
"We expect our ongoing commercial project, 8trium in Bandar Sri Damansara to help improve profits for the next three years," executive director Ferdaus Mahmood told Business Times after the company's extraordinary general meeting (EGM) in Bandar Sri Damansara yesterday.

At the EGM yesterday shareholders voted on a plan to buy 10 parcels of land with a 27 hole golf house in Negri Sembilan for RM25 million.

"Apart from the golf course we will develop it into residential project," he said, adding that the company will use internally generated funds to acquire the assets.

Meanwhile, speaking on its newly launched project - The Elements, Ferdaus said that the project is a joint venture with Malaysia Land Properties Sdn Bhd.

The concept of The Elements project is to cater for young urbanites looking for a sanctuary within the city.

The project features some 1,000 units of high-end studios, one- and two-bedroom condominiums, as well as lifestyle and retail components.

The 8trium comprises a two-storey 100,000 sq ft retail podium and 260 units of office suites contained in two blocks.

By Business Times

Active role for MRCB in Sg Buloh redevelopment

Some 1,214ha of rubber land in Sungei Buloh has been alienated to the pension fund, EPF, which owns 40 per cent of MRCB

Kuala Lumpur: Some 1,214ha of rubber land in Sungei Buloh, Selangor, has been alienated to the Employees Provident Fund (EPF), Malaysian Resources Corporation Bhd (MRCB)'s chief executive officer Datuk Mohamed Razeek Hussain told fund managers and analysts at the Invest Malaysia 2011 yesterday.



"Our chairman Tan Sri Azlan Zainol, who is also EPF's chief executive officer, told MRCB shareholders last week that the Sg Buloh land has already been alienated to the pension fund," Mohamed Razeek was quoted as saying by a fund manager who attended the briefing.

The land is currently owned by the Malaysian Rubber Board.

Mohamed Razeek said MRCB, which is 40 per cent controlled by the EPF, is set to be an active participant in the project.
"Mohamed Razeek said that since MRCB is 40 per cent controlled by EPF, MRCB can be expected to be active in the Sg Buloh redevelopment," a fund manager who did not want to be identified told Business Times after the closed-door presentation.

MRCB also plans for a mixed-development on 27.41 acres with gross development value (GDV) of RM1.5 billion in Setapak, Kuala Lumpur.

At a total development cost of RM1.2 billion, the expected profits to be derived from the said development amount to about RM300 million, representing 20 per cent of the GDV.

The land will be developed from 2012 over an eight year period into a mixed-development comprising both commercial and residential properties with an estimated GDV of about RM1.5 billion.

At a total development cost of RM1.2 billion, the expected profits to be derived from the said development amount to about RM300 million, representing 20 per cent of the GDV.

MRCB derives recurring income from leasing out some of its properties and collecting tolls from its Duta Ulu Kelang Expressway in Klang Valley and the Eastern Dispersal Link in Johor that connects to the North-South Expressway.

"Going forward, Mohamed Razeek also said the group is hopeful that its recurring income from building leases and tolled roads would make up 35 per cent of group revenue," the fund manager said.

Apart from property development, MRCB also bids for construction work. Currently, the group's order book totals RM1.6 billion and this will ensure sustained income for another 30 months.

By Business Times

Mah Sing confident of hitting RM2b goal

KUALA LUMPUR: Mah Sing Group Bhd, having chalked up sales of RM738 million in the first 15 weeks of this year, is optimistic of achieving its RM2 billion target by year-end as housing demand is still strong.

"We're confident of meeting our target as the confluence of strong fundamentals and our branding, location, concept and products will make 2011 another good year," said group managing director and chief executive Tan Sri Leong Hoy Kum.

Last year, the group sold RM1.5 billion worth of properties. Leong was speaking to reporters at Invest Malaysia 2011 held in Kuala Lumpur yesterday. Also present was executive director and chief financial officer Steven Ng Poh Seng.

He said the Economic Transformation Programme has proven to be catalytic and the Greater KL high impact project, like the construction of the Mass Rapid Transport (MRT) was set to generate excitement for the property market.
"Seven of our projects with gross development value of RM2.25 billion should benefit from the MRT development. This is 37 per cent of our unbilled sales of RM12 billion," he said.

With market capitalisation of more than RM2.2 billion, Mah Sing is the sixth largest property developer in the country.

A favourite among investors, Mah Sing since 2006, has been paying out at least 40 per cent of its profits as dividends.

By Business Times

UEM Land to retain Sunrise brand

KUALA LUMPUR: UEM Land Holdings Bhd will retain the Sunrise brand, while trying to integrate the different set of skills and expertise of both the former and recently acquired Sunrise Bhd.

"Everybody is talking about our plans to integrate. My message is why should we want to disturb something that is doing well. Sunrise and UEM Land are doing well, there are two different skill sets.

"Within one or two years, we would be able to pin down how we want to bring together (the skills and expertise)," UEM Land managing director and chief executive officer Datuk Wan Abdullah Wan Ibrahim told reporters on the sidelines of Invest Malaysia 2011, here yesterday.

Asked who will decide to buy landbanks for future development, Wan Abdullah said it will be decided by UEM board of directors.
On the current landbanks that UEM Land has for future development, he said the company has more than a thousand hectare in Nusajaya, Perak, Kuala Lumpur and Cyberjaya.

"Whenever there are opportunities, we will go in and buy. If we are invited to be a party, say the redevelopment of Pudu jail, we will be interested," he said.

He said the company is also looking at expanding its business overseas, but stressed that it will only go in through partnerships.

"Currently, we are presence in Durban, South Africa, as well as in India, the latter is a good country to look into, but we will go in through partnerships," he said.

Overall, he said UEM Land has projects worth a gross development value of RM30 billion.

By Business Times

Amcorp Properties to sell land for RM122.3mil

PETALING JAYA: Amcorp Properties Bhd is looking to sell a piece of leasehold agriculture land in Sepang for RM122.3mil to property investment company Premier Land Resources Sdn Bhd.

In a Bursa Malaysia filing, the company said its wholly-owned sub-subsidiary had entered into a conditional sale and purchase agreement yesterday with Premier Land Resources for the land, which is currently a palm oil plantation measuring 521.1ha.

Proceeds from the disposal will be used mainly to reduce Amcorp Properties' debts and as working capital.

The group estimates a gain of RM39.7mil from the disposal based on the net book value of the land of RM80.9mil as at March 31 this year.

By The Star

Mah Sing buys land

Mah Sing Group Bhd has signed a deal with nine parties to buy nine pieces of contiguous land in Tanjung Kupang, Johor Baru, for RM54.7 million.

It plans to develop an industrial park, dubbed Mah Sing i-Parc on the land as it is near the Port of Tanjung Pelepas and is located within the Iskandar Malaysia region.

It aims to build factories and shop offices with a gross development value of RM610 million, Mah Sing said in a statement.

By Business Times

E&O gets approval

EASTERN & Oriental Bhd (E&O) has received an approval in principle for the proposed mixed development on land to be reclaimed in Tanjong Tokong, Penang (Phase 2).

The approval given by Penang state’s Jabatan Perancang Bandar dan Desa is in addition to the 396.9ha of right already granted to E&O’s unit Tanjung Penang Development Sdn Bhd in 1992.

The current approval is for the balance concession area of 299.7ha.

By Business Times

Mah Sing plans industrial park in Johor, GDV RM610m

KUALA LUMPUR: MAH SING GROUP BHD is buying nine parcels of land in Tanjung Kupang, Johor Bahru measuring 205.72 acres for RM54.7 million for an industrial park.

It said on Tuesday, April 12 the land was acquired at about RM6.10 per sq ft and it plans to develop into an integrated industrial and business park named Mah Sing i-Parc.

“Based on preliminary plans, Mah Sing i-Parc will comprise semi-detached factories, detached factories and shop offices with an estimated gross development value of approximately RM610 million,” it said.

Mah Sing said there would also be some factory land of about 0.5 acre to one acre per lot for sale within the industrial park.

The park is one km from Port of Tanjung Pelepas (PTP) and 23 km to Jurong Industrial Estate in Singapore. Besides being only 8 km from the Second Link Bridge to Singapore.

“Such close proximity to PTP would attract businesses which support port and marine activities, such as those providing bunker facilities, ship repairs and cargo handling services.

“As PTP is a major transportation and transshipment hub, there is a large target market comprising import, export, trading, forwarding and warehousing services which may relocate to Mah Sing i-Parc,” it said.

By The EDGE Malaysia