Home is where the Arte is

Designed to promote uniqueness: An artist’s impression of Arte@Kuchai Lama project.

WOULDN’T you like to own a home that is futuristic in its architecture as well as unique in art form? Property developer Nusmetro Group is launching its latest development — Arte@Kuchai Lama, this weekend to promote its new Art Series brand of homes.

Nusmetro, with its philosophy of Branding Homes, will be using Arte as its platform to launch its Art Series brand.

“As the name suggests, Arte will have strong elements of artistic living and art architecture. The Art Series brand is the new addition to the existing category of Signature Homes and Contemporary Homes,” said Nusmetro managing director Thomas Chan.

What makes Arte unique is its strong product differentiation, be it from artistic architecture to unique interior design of its lobby to the egg shape pavilion lounge.

“Sculptures from renowned names like Sculptura, Frank Woo and designer lighting names like Artemide and Tom Dixon are fitted into the lobby and lounges of Arte to give the project a distinctive identity.”

This development is the first of its kind in terms of architecture. Functionality of space was also given much thought as every unit, in two blocks of 23 and 25 storeys, comes with a private lift lobby and most units adopt a wide angle layout concept with a 7.62m-wide balcony which promotes spaciousness of space.

“Arte, with its low density of only 250 units and 15 different types of layout, is designed to promote uniqueness and strong capital appreciation as there are limited units within each type of layout,” added Chan.

Why art? “I travel quite a bit so wherever I visit, I always bring back some ideas to include in our developments,” he said.

The price for each unit starts at RM380 per square feet.

“The pricing for our Arte series is competitive and the 50% release to its registered buyers have been fully sold prior to this weekend launch,” said Chan.

Arte@Kuchai Lama is due to be completed in the third quarter of 2014.

“We are instrumental in creating unique and specialised units so as to not make them identical like what you would find in other condominiums. It is an expensive move to incorporate into the development but we think it will increase capital appreciation,” said Chan.

With a track record of completed properties exceeding 5,000 units valued over RM1.5bil, Nusmetro’s philosophy of Branding Homes is poised to carve its name in the local property scene.

The launching this weekend will be at the Nusmetro sales office in Unit 105 & 106, Block E, Phileo Damansara 1, Jalan 16/11, off Jalan Damansara, Petaling Jaya, from 9am to 6pm (Saturday and Sunday).

By The Star

New commercial project in Cyberjaya

Property developer, Glomac Berhad is launching a freehold commercial project in Cyberjaya at the end of this month.

The site for Glomac Cyberjaya 2 was acquired shortly after the highly successful launch in its maiden project in Cyberjaya.

“To further capitalise the momentum and success of Glomac Cyberjaya Phase 1 & 2 and to continue to develop more shop offices, we acquired the adjacent second plot of land due to its successful take-up rate,” said Glomac group managing director/CEO Datuk FD Iskandar.

Glomac Cyberjaya Phase 1 & 2, which sits on part of the 3.64ha tract, features 63 units of three-storey shop offices is fully sold. It is due to be completed by end of this year.

Glomac Cyberjaya 2 will consist of 55 units of three-storey, three- and-a-half and four-and-half-storey of shop offices and a 24-storey office tower, each with a sophisticated modern facade that more than match its illustrious surrounding neighbours.

The built area is from 3,300sq ft onwards and the range of price starts from RM1.29mil onwards.

This development will present a wider range of investment opportunities that are ideally suited for small to medium-sized businesses seeking a stylish business address in the heart of Cyberjaya.

The entire development of Glomac Cyberjaya is strategically located along Persiaran Apec.

This ideal development is within the address of technological excellence, Cyberjaya, with HSBC, Ericsson, IBM and DHL as its surrounding neighbours.

For more information, call 03-7801 9000.

By The Star

Garden-themed M City sold out

Mah Sing Group has garnered RM412mil sales from its garden-themed mixed development, M City Jalan Ampang which is located less than 5km from KLCC.

First previewed in June this year, all 401 units of designer SoHo (small office, home office) suites worth RM295mil have been taken up.

Response to the 24 retail units worth RM117mil launched a few weeks ago has also been overwhelming, with the 15 units of three-storey boutique retail, four units of single level retail, four kiosks and supermarket fully sold.

The 39,000sq ft supermarket was acquired by gourmet supermarket chain Village Grocer.

“The location and concept of M City dovetail with the business strategy for our gourmet supermarkets,” said Village Grocer managing director Ong Kim Too.

“We operate in prime developments as anchor retailer/tenant, at sites with a concentration of our target customers,” he added.

A mixed development comprising designer SoHo suites, residential suites, sky villas and boutique retail, M City Jalan Ampang which sits on a 2.02ha freehold site has an estimated gross development value of RM1.4bil.

Located along the famed Embassy Row, M City is a stone’s throw away from Ampang Point which has a proposed MRT station, and is less than 2km away from Gleneagles Hospital, Great Eastern Mall and M Suites. With such an attractive location, there is a catchment of more than 500,000 from the surrounding matured developments.

Mah Sing group managing director Tan Sri Leong Hoy Kum said, “M City is Kuala Lumpur city’s one and only garden city community, and the first ever to boast multi-level thematic hanging gardens in Malaysia.

“We have various thematic hanging gardens spanning over 1.61ha for every sixth floor, with concepts such as sky garden, tropical sanctuary, spring park, bamboo groove and lagoon park which has become the talk of the town and a key selling point. A four-tier clubhouse houses a gymnasium and an infinity pool with an excellent city and lake view has been planned for the enjoyment of residents. The project is also designed to achieve the Green Building Index (GBI) Gold standard by increasing the efficiency of resource usage.”

More than 2,500 parking bays have been allocated for residents, tenants and visitors of M City, with separated residential and commercial parking lots and parking entry points.

He added, “We have carefully planned the project and most of the units are smaller sizes to meet current market need. With such good response to our SoHo and retail units, we intend to launch our residential suites in our sales gallery in Icon Jalan Tun Razak soon.”

The new launch are residential suites priced from RM550,000.

Buyers shall be spoilt for choice with the numerous configurations available, from studio units (506sqft) priced from RM550,000, 1 bedroom (674sqft), 2 bedroom (886sqft) and 3 bedroom units (1,653sqft). All these options are also available as duplex units to ensure that discerning buyers can get exactly what they need.

These units are semi-furnished and amongst the furnishings and electrical appliances to be provided by Mah Sing include bedroom wardrobe and vanity cabinet with mirror, kitchen cabinets, air conditioners, refrigerator, washer cum dryer, microwave oven, built in hood and hob as well as water heaters. Mah Sing shall also absorb the legal fees for sales and purchase agreement.

By The Star

Axis REIT to buy property from DHL for RM48.5m

Axis Real Estate Investment Trust has proposed to buy a three-storey office and warehouse in Penang from DHL Properties (Malaysia) Sdn Bhd for RM48.5 million to expand its business.

At the same time, Axis will lease the property back to DHL for five years. It will have an option to renew the lease for another five years.

"The acquisition is accretive with an unleveraged triple net yield of 8 per cent which will have a long term benefit to the Fund.

"Furthermore the lease has annual built in rental growth which will enhance earnings," Stewart LaBrooy, chief executive officer of Axis REIT Managers Bhd, said in a statement.

The property, located in Bayan Lepas, has a gross built up of some 231,940 sq ft and comes with a 60 year leasehold title which will expire in 2062.

Axis-REIT will use existing bank loans to fund the deal. This will raise its gearing level to 40 per cent.

The latest purchase will boost the fund's asset under management to over RM1.39 billion, upon completion by December 31, 2011.

By Business Times

Kosmopolito to launch five hotels

Expansion plan: Kosmopolito inte nds to develop service apartments on a site near the Dorsett Regency Kuala Lumpur.

KUALA LUMPUR: Kosmopolito Hotels International Ltd (KHI), which has 17 hotels primarily in Asia, has at least five ongoing projects in Malaysia that it plans to launch within the next 12 to 24 months.

KHI vice-chairman Datin Jasmine Abdullah Heng said the company was also looking for land in Malaysia to set up either hotels or serviced apartments.

“We would have more (than five projects) in the pipeline if we can secure the land,” she told StarBiz during a donation ceremony and visit to the National Heart Institute (IJN) on Tuesday.

Its ongoing Malaysian projects include the renovation of Phoenix Plaza in Cheras and the renovation of the Sri Jati serviced apartments in Kuala Lumpur into a hotel cum service apartments.

Jasmine also said KHI intended to develop service apartments on a site near the Dorsett Regency Kuala Lumpur.

“We also plan to launch service apartments within the Grand Dorsett Subang area by year-end and (also) have an on-going project in Sri Hartamas (in Kuala Lumpur),” she said.

“We are also looking at potential projects in Kota Kinabalu (Sabah), Penang, Langkawi, Kuantan (Pahang) and Malacca. We're aggressive on our expansion plans,” she added.

KHI, a subsidiary of Far East Consortium International Ltd (FEC), was set up in January 2007 and listed on the Hong Kong Stock Exchange in October 2010.

The company owns and manages four key hotel brands in different market segments Boutique Series by Kosmopolito, Grand Dorsett, Dorsett Regency Hotels & Resorts, and Silka Hotels, which can be found in Hong Kong, Shanghai, Chengdu, Wuhan, Singapore, Malaysia and London.

On the local front, KHI's properties are the Grand Dorsett Subang, Dorsett Regency Kuala Lumpur, Grand Dorsett Labuan, Silka Hotel Johor Bahru, Maytower Hotel & Serviced Residences Kuala Lumpur and Damas Suites & Residences Kuala Lumpur.

Jasmine declined to comment on an old report that FEC was planning on a real estate investment trust (REIT) listing that would include the Malaysian properties.

Meanwhile, KHI on Tuesday donated RM6,000 to IJN as part of the former's corporate social responsibility initiative. Earlier this year, the National Heart Institute received a donation amounting RM30,000 from KHI.


Chiu will be elected president of the company effective Nov 1

KHI executive director Winnie Chiu, who will be elected president of the company effective Nov 1, said: “We are committed to this good cause. We're supportive of this and will continue to support (IJN) going forward.”

By The Star

KL Metropolis expected to woo RM3.5b foreign investments

Foreign companies may invest that amount to build properties, either on their own or in partnership with Naza TTDI

KUALA LUMPUR: The Naza Group's KL Metropolis project is expected to lure foreign investments of some RM3.5 billion over its 15-year development period.

Foreign companies may invest that amount to build properties, either on their own or in partnership with Naza TTDI Sdn Bhd, the property arm of Naza Group.

"While we can build the structures on our own, we want to give opportunities to others for transfer of technology and expertise," Naza TTDI group managing director SM Faliq SM Nasimuddin said af-ter the project's launch on Tuesday.

The RM15 billion project is located next to the existing Matrade building off Jalan Duta and is touted as a new business district.

It will feature 22 office and residential towers, which include a 100-storey building and three hotels, as well as the new one million sq ft Matrade centre and two retail centres with more than two million sq ft of space on 30 hectares.

Launched by Datuk Seri Mustapa Mohamed, the Minister of International Trade and Industry (Miti), the project will be developed in three phases.

Phase 1 will comprise the exhibition centre, two residential towers, two hotels, two office towers and a retail centre, worth a combined RM6 billion.

Faliq said tenders to cons-truct the buildings will be called next month. It has appointed a local contractor to do the piling work.

Naza TTDI will borrow from banks and use internal funds for the initial stages of development, after which it may raise more money from a bond sale. The company is expected to invest RM500 million on infrastructure alone.

"We aim to complete Phase 1 by 2014/2015," he said.

Naza TTDI is already in talks with several foreign investors to build the retail and com-mercial properties in a joint venture.

It is also in discussions with a few five-star international hotels and mall operators to manage some of its properties.

"We are seeking five-star hotel operators and good retail partners for the project. We want to make this a world-class business and tourist destination," Faliq said.

Naza TTDI will announce several deals before the end of this year or early next year.

Faliq said Phase 2, which will start in 2015, will have five residential towers, three office blocks, a boutique hotel, a healthcare centre and the 100-storey building, worth RM4 billion.

Phase 3, worth RM5 billion, will start in 2019, consisting of three residential towers, three office buildings and a retail centre, he added.

“We have attracted a lot of local and foreign interest for this project, repositioning Malaysia on the world map. We expect several en bloc deals coming in,” Faliq said.

KL Metropolis is designed to Malaysia’s Green Building Index requirement and is also the first registered LEED for Neighbourhood project in Malaysia.

The LEED certification is an internationally-recognised green rating system that incorporates the principles of smart growth, urbanism and green building.

By Business Times

Naza TTDI's next step is to get listed

KUALA LUMPUR: After launching its biggest property project so far, Naza Group is aiming to list its property unit on the local stock market in about three years.

Naza TTDI Sdn Bhd's initial public offering (IPO) is also expected to be among the largest property IPOs on Bursa Malaysia, joint group executive chairman SM Nasarudin SM Nasimuddin told Business Times.

"Now that we have launched KL Metropolis, the next step is to take Naza TTDI to new heights and to do that, we will need the IPO," he said on Tuesday after the launch of the project by Minister of International Trade and Industry Datuk Seri Mustapa Mohamed.

Business Times first reported that Naza TTDI wanted to list in 2008 but this was postponed due to weak market conditions and also because it wanted to build its asset base.

It had hired CIMB Investment Bank Bhd to arrange the IPO and planned to raise more than RM1 billion.

"With the KL Metropolis development, Naza TTDI is a step closer to becoming a sizeable property group," Nasarudin said.

Naza Group, founded by the late Tan Sri Nasimuddin Amin in 1974, is well-known as an automotive player. It ventured into property development by acquiring Naza TTDI more than five years ago.

Meanwhile, Naza TTDI is well-known for the development of Taman Tun Dr Ismail in Kuala Lumpur.

KL Metropolis is currently the single biggest integrated mixed development in Kuala Lumpur for Naza TTDI and piling work has started.

The RM15 billion development is almost four times bigger than Naza TTDI's ongoing Platinum Park project in the Kuala Lumpur city centre, which is worth RM4 billion.

KL Metropolis will have 18 40-storey office and residential towers, a 100-storey building and three hotels, as well as the new one-million-sq-ft Matrade centre and two retail centres with more than two million sq ft of space.

By Business Times

Axis REIT to buy RM48.5m assets

KUALA LUMPUR: Axis Real Estate Investment Trust (REIT) has proposed an acquisition and leaseback of a three-storey office block and a logistic warehouse complex for RM48.5mil cash from DHL Properties (M) Sdn Bhd.

The agreement was entered into by OSK Trustee Bhd, the trustee for Axis REIT.

The 3.083ha land is located in Barat Daya district, Penang, Axis REIT said in a statement on Tuesday.

“The proposed acquisition and leaseback of the properties is consistent with the investment objective and strategy of Axis REIT and it will be accretive to Axis REIT's distributable income.

“It will also diversify and enlarge Axis REIT's portfolio of properties and is expected to benefit in the long term from economies of scale,” it said.

By Bernama

Kuala Terengganu City Centre to give real estate a boost

KUALA LUMPUR : The Kuala Terengganu City Centre (KTCC) project by the East Coast Economic Region Development Council (ECERDC) will have a significant long-term impact on Terengganu’s property market.

The region will be able to attract more local and foreign investments into Terengganu’s real estate sector via this landmark development which has a gross development value of RM5 billion.

Foo Gee Jen, managing director of CH Williams Talhar & Wong, a renowned property consultancy, said KTCC’s trickle-down effect on the local property sector was already seen in Kuala Terengganu where the prices of land and homes had increased significantly.

By Bernama

KL Eco City to get off the ground early 2012

Kuala Lumpur: After more than a decade of delay, property developer SP Setia Bhd expects to start working on the RM6 billion KL Eco City, opposite Mid Valley Megamall in Kuala Lumpur, by early next year.

The land, where the development is to take place over 12 years, has been cleared and is currently vacant.

SP Setia first announced its intention to develop the land almost a decade ago, but had faced problems with squatters in the area, among other things.

In its filing to the stock exchange yesterday, SP Setia said Kuala Lumpur City Hall or Dewan Bandaraya Kuala Lumpur (DBKL) had finally formalised the privatisation of the 10ha cluster of land parcels in the Kampung Haji Abdullah Hukum area.

The land is being alienated to KL Eco City Sdn Bhd (KLEC), which is owned by SP Setia and Yayasan Gerakbakti Kebangsaan on a 60:40 basis.

With net saleable area of 5.7 million square feet, SP Setia proposes to build a retail podium, three boutique office blocks, strata-titled office suites, three office towers, three residential towers and a serviced apartment tower.

The proposed development will also include a new KTM Komuter train station that will be integrated with the existing Abdullah Hukum LRT station.

Railway Asset Corp (RAC) has mandated SP Setia to deposit RM42.09 million in land bond to ensure construction of the train station.

Under the privatisation agreement, SP Setia must pay DBKL RM105.92 million, less the premium already paid, over 36 months.

As soon as SP Setia starts construction, it has to deposit RM10.55 million as performance bond with DBKL.

It also has to cough up a minimum guaranteed profit of RM191.96 million for the proposed development.

These are in addition to the initial agreement that DBKL be taking 20 per cent of the project's net profits.

The privatisation is conditional upon SP Setia paying DBKL RM11.4 million, being the difference between the actual construction cost of the low medium cost Apartment Abdullah Hukum 1 and the purchase price offered to the squatter families on the DBKL land.

The deal also requires SP Setia to pay RM10.59 million, being 10 per cent of the residual land value and RM1.62 million, being the land value for Plot F of the DBKL cluster of land.

SP Setia said these payments to DBKL will not have a material effect on its gearing for the year ending October 2011.

SP Setia estimates the KL Eco City's gross development cost to total RM5 billion.

By Business Times

Naza seeks investors for RM15b project

Naza Group, Malaysia’s biggest luxury vehicle importer, is seeking to draw local and foreign investors for a proposed RM15 billion property project in Kuala Lumpur.

Naza is in talks with local and international investors who are “serious” in taking part in the project, which may include a 100-floor tower, Naza Group Joint Executive Chairman SM Nasarudin SM Nasimuddin told reporters in Kuala Lumpur today.

Naza won land rights in 2009 from the government in return for building an exhibition center. The company will develop the land in three phases over 15 years, it said in a statement.

By Bloomberg

SP Setia unit in development deal with KL mayor

PETALING JAYA: SP Setia Bhd's subsidiary KL Eco City Sdn Bhd (KLEC) has entered into a privatisation agreement with Datuk Bandar Kuala Lumpur for the development of about 24.88 acres in Kampung Haji Abdullah Hukum in Kuala Lumpur.

In a statement, SP Setia said the privatisation agreement was done in pursuant to a memorandum of understanding dated Aug 21, 2007 between the Datuk Bandar and KLEC, then known as Pelita Dunia Sdn Bhd.

SP Setia group owned 4.38 acres of the piece of land in Kampung Haji Abdullah Hukum, while Datuk Bandar owned the remaining 20.5 acres. KLEC has proposed to develop an integrated commercial and residential development with a net saleable area of about 5.7 million sq ft on the said land.

The proposed development, worth a gross development value of RM6bil and a gross development cost of RM5bil, would comprise a retail podium; three boutique office blocks; strata-titled office suites; three office towers; three residential towers and a service apartment tower.

By The Star

HK office space still costliest

HONG KONG: Hong Kong continues to be the most expensive place in the world to rent office space, according to research from a property brokerage.

And despite an expected slowdown over the next 12 months, Hong Kong would likely retain its world-leading position, Colliers International said yesterday.

Hong Kong again topped the rankings for the world’s most expensive cities to rent office space, ahead of London’s West End, Paris, Tokyo and the City of London, according to Colliers.

By Reuters

More Malaysians buy properties in London

KUALA LUMPUR: There has been an influx of Malaysian buyers for properties in central London in the last two years, driven by the favourable exchange rate and long-term investment appeal, says Savills Inc director James Talbot.

Talbot said more Malaysians are buying properties in London to spread their investment risk.

"There is also the feel-good factor of owning a property in central London, being an international financial district," he said in an interview recently.

Talbot said property prices in central London have appreciated by 13 per cent over the last three years and are forecasted by Savills Research to grow by 6 per cent per year over the next five years.

Rental yields have also increased from 3 per cent five years ago to about 5 per cent, he said.

"London is a good and safe place to put your money. If you compare with Australia, it is easier to buy and sell a property in London.

"For Australia, as a foreigner, you can only buy properties that are under construction and sell to an Australian and pay tax on profits. There is no such ruling in the UK," Talbot said.

Savills, a global real estate service provider with over 200 offices and associates around the world, is introducing a new project in central London called Caro Point to Malaysian investors.

Caro Point offers 84 apartment units, priced between STG355,000 (RM1.7 million) and STG11 million (RM55 million).

Talbot said 26 units have been sold to investors in the UK and nine in Southeast Asia.

The STG100 million Caro Point is part of the Grosvenor Waterside development in central London.

Talbot said Savills will continue to introduce new projects in London to Malaysian investors despite the global uncertainties. The group has introduced some 20 projects in Malaysia in the last five years.

By Business Times

Damansara Realty gains most in 28 months

Damansara Realty Bhd, a Malaysian builder and property developer, rose to its highest level in more than 28 months after The Edge reported that its parent Johor Corp may transfer property projects to the company.

The stock gained 6.7 percent to 88 sen at 9:16 a.m. local time in Kuala Lumpur trading, set for the highest close since June 16, 2009.

By Bloomberg

iProperty bags website award

KUALA LUMPUR: iProperty Group bagged the "Digital Media Company of the Year" award in the Property and Real Estate in Malaysia category and "GoHome.com as Property Portal of the Year 2011" in Hong Kong.

Group chief executive officer Shaun Di Gregario said the fact that the group garnered the respect of the industry was proof that iProperty Group was the clear market leader in a highly competitive property arena.

"Our mission is to continue to deliver first-class customer service and highly innovative products that will create a more engaging experience for property buyers and investors, helping them make a more informed decision," he said in a statement.

This was the third time iProperty Malaysia had won this highly coveted award on being recognised as the Digital Media Company of the Year for advertising and marketing.

Aside from this prestigious award, iProperty.com Malaysia magazine was also voted the No. 1 magazine for the third year running for advertising and marketing in Malaysia.

With the leading market position among consumers and real estate professionals alike, being dubbed as "Property Portal of the Year 2011" further strengthens go.home.com.hk leadership position in Hong Kong.

"The accreditation of this award is recognition of the great work that go.home.com.hk team has done over the recent times," Di Gregario added.

By Bernama

Consider the rentability of an affordable commercial property

Although global sentiments remain weak for the moment, it is business as usual as developers move ahead with their property launches. In the Klang Valley in the next couple of months and even into the new year, developers will be offering apartments with small built-up areas.

These are essentially serviced apartments but developers prefer to call them by various other names.

Some of these names include the following - versatile office suites, small office home office (or Soho), lifestyle suites, small office versatile office or office suites. Whatever names they are called, all of them share several features.

These properties are built on commercial titles, not residential titles. Because they are on land with commercial title, utility charges will be 25% to 30% higher than if they were built on residential land. And because they are located on commercial land, developers offer that “office” component, hence the name small office, home office. Maintenance charges will also be higher compared with projects on residential titles.

A second feature they share is the built-up area. Most of these units are sized between 400sq ft and 600sq ft. Some may be as large as 800sq ft or even larger. Generally, however, they tend to hover around 500sq ft. Most of them will be one-room or studio apartments. Those with larger built-up areas may have two rooms.

One may ask, if they are so small, how can it be a home and an office at the same time? This goes back to the land title again.

The built-up of these properties are cut rather small because of high land cost. If the developer were to offer a three-bedroom apartment of about 1,200sq ft, these properties may be out of the reach of many. As it is, it is the smaller units which tend to sell faster.

A close scrutiny will show that most of these units are located in pretty urban or commercial areas which means there are conveniences close by. In the case of Section 13, Petaling Jaya, properties like Centrestage, which is currently being constructed, will be close to the Section 14 commercial area.

But besides Section 14, there are also the commercial areas of Section 17, Section 19 and SEA Park within a 10km radius.

The project will, therefore, leverage on the old commercial areas in the vicinity. Two blocks are being developed by Tetap Tiara Sdn Bhd, the developer who built the Jaya One commercial blocks located at the Jalan University-Jalan 13/6 corner. Other serviced apartment projects are being planned in Section 13.

Over in Ampang, Kuala Lumpur, serviced apartment projects are being planned in and around that area. The projects will leverage on the commercial areas in that locality. Developers are also featuring its proximity to the Petronas Twin Towers as a selling point.

Serviced apartments are also being launched in relatively new areas in and around the Klang Valley. This includes Empire City by the Subang-based Empire group. Empire City is located on 25 acres of commercial land opposite Damansara Perdana. Blocks of office towers, serviced apartments and a hotel will be located along the Lebuhraya Damansara-Puchong.

In Sri Damansara, TA Global Bhd will be having serviced apartments too. There will be other similar projects in Kota Damansara.

The proliferation of these 500 sq ft apartments is also as a result of the financial crisis. Developers have learned that smaller units are easier to rent and sell than a 2,500 sq ft unit. The many empty condominiums around the Petronas Twin Towers is an example. Most of the units there are 2,000sq ft and above. Now those who are planning projects there are building units under 2,000sq ft. By cutting the size small, these smaller units are also more affordable.

Here then is the catch. Buyers, fearing that property prices may go up further, are going for these smaller units with the hope to either flip sell them after completion, or to rent them out. But while developers are able to make their projects affordable, can they make them rentable?

Most of these small units are priced around RM500,000. At that price, they have tempted many into signing on the dotted line. But the buyer must also consider the fact that instead of one big 2,500sq ft unit, there are now five small units, which means there are now a large number of small apartments.

The density has increased. The higher the density, the longer it will take to rent out that unit, or to sell later on. Instead of one owner offering to rent or sell his 2,500 sq ft unit, a buyer is now competing with four others to rent, or to sell, their units.

So do not make a decision because you can afford that RM500,000 unit, but consider rentability and other factors that contribute to that rentability, like accessibility and the availability of basic amenities.

Assistant news editor Thean Lee Cheng suggests that potential investors consider rentability, and not just affordability.

By The Star

The case for green buildings

Yeang: ‘Green buildings provide better cost savings in the long run.’

As a world-renowned eco-architect, Datuk Kenneth Yeang truly believes that buildings with environmental features are more than just about design and aesthetics.

To him, there are definitely pure economic benefits from having green structures.

“There is definitely a strong commercial case for green buildings,” he tells StarBizWeek in an interview.

“Green buildings provide better cost savings in the long run and provide better indoor air quality. With an environment that’s less polluted, there is a lower chance of your staff getting sick, which also means better productivity for your business.”

Yeang feels that the benefits of green buildings are still not properly communicated to the general public.

“The benefits of investing in green buildings needs to be communicated better to investors and end-users.

“Unless this is done, banks would not want to provide loans for such projects and developers would won’t want to be involved in it.

“At the end of the day, it’s about education.”

Yeang also says that there are too many buildings that are rated green but “don’t look green enough.”

“You may have a structure that is rated green but it does not portray that image and just looks like any other building around.

“Developers (of green buildings) should be more explicit with their designs in portraying it (that it is a green building) because the public expects it.”

Yeang was recently bestowed the prestigious Merdeka Award in the Environment Category for his outstanding contribution to the development of design methods for ecological design and environmental planning.

No stranger to winning accolades for his work, Yeang is humble about his latest achievement.

“People ask me how I feel, but I’m still the same person I’ve always been.”

Yeang, who pioneered the application of ecological principles to skyscrapers for more than three decades, has received awards for landmark buildings that include the Spire Edge Tower in Delhi, India, the National Library in Singapore, as well as the DiGi Technical Operation Centre in Subang Jaya.

Yeang says Malaysia is ahead of many countries in promoting green buildings, adding however that there is more that can be done.

“We have a Green Building Index and the Government also provides tax incentives for green buildings.

“In the last 10 years, there has been an increase in demand for green buildings.”

T.R. Hamzah & Yeang Sdn Bhd was co-founded in 1976 with Tengku Robert Hamzah in Kuala Lumpur.

The firm now has four offices in China, a sister office in Britain and associate offices in Japan and Australia. He says there are no immediate plans to expand further.

Three decades

The firm has been in existence over three decades, with projects in Europe, the United States and Asia. Key projects include the high-rise National Library Board building (Singapore), the 40-storey Eco-Tower at Elephant & Castle, the 24-storey IBM Building (Malaysia) and 15-storey Mesiniaga Building (IBM franchise) (Malaysia) and the Wirrina Cove Condominium (Australia).

Yeang considers the profession a business and an art and he feels that having business knowledge is essential to be a successful architect.

“Business knowledge is very important for an architect.

“After my first year (as an architect), I took up business classes in the evenings for two years.

“It was a big help. Architecture is not just an art, it’s a business as well.”

Yeang says he also took up a one week business course at the Harvard Business School in 2002 to hone his “business skills.”

“It cost me US$13,000 but it was worth it!

“In fact, I should have done it earlier! It changed my outlook and made me realise that architects are quite silly, really,” he enthuses.

Being conned

Yeang says that architects are so engrossed in their work that they fail to realise it when they are being conned!

He also notes that the architect profession is a stressful and competitive business – more so today than when he first started out.

“When I first started, there must have been 40 or 50 firms in Kuala Lumpur. Today, there are about 500!”

When not designing concepts for environment-friendly buildings, Yeang writes about them.

In 1997 he published what is considered the seminal book on skyscrapers – The Skyscraper: Bioclimatically Considered: A Design Primer. Yeang has already written 12 books.

In measuring success, Yeang says what clearly defines winners and losers is that winners “keep getting back up.”

“It does not mean that winners never lose. Winners lose too but the difference is that they always pick themselves up and continue fighting. Losers stay down and never get up,” he says.

By The Star

Malaysia funds' appetite for overseas properties

Kuala Lumpur: More Malaysian investment funds are buying properties overseas to diversify risk and portfolio and the trend is set to continue in 2012.

Rahim & Co managing director Robert Ang said they are taking advantage of the current global downturn which has forced owners to sell properties below market price.

The UK is still the hottest market for Malaysian investment funds and plenty of buildings are for sale currently, especially in London.

“The banks are not lending as they used to. In fact, they are trying to recover some loans so there is a lot of pressure from owners to sell now,” he told Business Times in an interview yesterday.

“The simple investment strategy is to buy at low prices and sell at a handsome profit. We can expect major deals next year,” Ang said.

The Employees Provident Fund (EPF) has in the last eight months bought five grade A commercial buildings in central London for about RM5 billion.

This is after the government allocated some RM10 billion for the pension fund to buy properties overseas to diversify its portfolio so it could earn better.

The pension fund last year appointed ING Real Estate Investment Management and RREEF as consultants.

Ang said the EPF is currently looking for commercial buildings in London, Australia and Europe to spend the balance RM5 billion.

He also said that Permodalan Nasional Bhd, which has invested in properties in Australia last year, is eyeing several buildings in the UK.

Last year, PNB bought an upmarket office block in Brisbane, Australia, called Santos Place, reportedly for more than A$290mil (RM928 million).

The 37-storey building has 373,508 sq ft of lettable space with about two-thirds of that leased to Australian oil and gas giant, Santos.

Ang said the Retirement Fund Inc (KWAP) has also expressed interest to buy properties in London while pilgrims fund Tabung Haji is looking at syariah-compliant buildings in Australia.

He said KWAP is seriously looking at buying something in London and is mulling setting up a representative office there.

Rich Malaysians are also snapping up properties for their personal investment in the same markets.

"We have major shareholders of listed companies who are buying properties in London and Australia as part of their private investment. There were several deals done recently where they paid RM50 million to RM100 million for several properties," Ang said.

By Business Times

Malaysia’s biggest development projects in China

NANNING: The China Malaysia Industrial Park in Qinzhou, Guangxi Zhuang Autonomous Region, will become Malaysia’s biggest development projects in China with a total area of 55 sq km.

Leaders from both countries have agreed to turn the industrial park, near a deepwater sea port at the southern tip of Guangxi, into the iconic project for Sino-Asean cooperation.

Prime Minister Datuk Seri Najib Tun Razak said the project had great potential as the park was located strategically close to the Asean market and north of Hainan Island, which is earmarked as China’s latest recreational resort.

Najib said the initial stage of the development had already started and he hoped that the parties involved would finalise their plans and launch the project as soon as possible.

Chinese Premier Wen Jiabao said the project would be the first industrial park joint venture between China and its Malaysian counterpart in the western region of China.

Najib and Wen witnessed the signing of the agreed minutes on the industrial park during Najib’s one-day working visit to Nanning for the 8th China-Asean Expo and China-Asean Business and Investment Summit.

Meanwhile, Najib announced the appointment of Malaysia China Business Council joint-chairman Tan Sri Ong Ka Ting as prime minister’s special envoy to China.

By The Star