UDA to review plan to divide Pudu jail site

Unlocking value: The proposed transportation hub is capable of accommodating 200,000 to 300,000 commuters daily and complements the existing monorail and LRT facilities on the Pudu Jail site.

KUALA LUMPUR: UDA Holdings Bhd will review the Finance Ministry’s (MoF) proposal to divide into three plots the former Pudu Jail site, better known as the Bukit Bintang City Centre (BBCC), to maximise the value of the land.

Chairman Datuk Nur Jazlan Mohamed said a study on the matter was being conducted by a special committee chaired by an UDA board member.

Previously, MoF had ordered UDA to divide the former Pudu jail land, or BBCC into three plots with two to be given to local bumiputra companies and the remainder to a non-bumiputra entity.

The directive was issued after MoF did not consider UDA’s proposal to appoint a China’s government-linked company, Everbright International Construction Engineering Corp, as its joint-venture partner for the project. The plan involves a foreign direct investment valued at nearly RM4bil.

Nur Jazlan said the special committee which reports directly to the UDA board of directors would use the model proposed by Everbright as a benchmark for any form of implementation of BBCC project.

He said the proposed model would be the best solution as it gave the best return in terms of assets and recurring income to guarantee UDA’s sustainability in the future.

“I understand and respect the decision made by MoF on the basis of giving priority to bumiputras and UDA as a bumiputra company would never marginalise the agenda.

“Therefore, we believe the implementation of the development cannot be done hastily and in-depth study should be conducted to meet the needs of UDA and MoF as the main shareholders of the company,” Nur Jazlan said.

He said the planning for the development of the 20-acre had to be made carefully and without haste because the survival of UDA and almost 1,400 of its employees depended on its successful implementation.

UDA also said its transport consultant indicated that the site was suitable for a transportation hub. Therefore, a a big bus terminal and other properties in BBCC would be built around the transportation hub.

Nur Jazlan said the proposed transportation hub would be able to accommodate 200,000 to 300,000 commuters daily and complemented the existing monorail and LRT facilities on the Pudu Jail site.

The transport hub would also help to ease vehicle congestion in Kuala Lumpur’s golden triangle area.

By The Star

UDA to review plan to divide BBCC site

KUALA LUMPUR: UDA Holdings Bhd will be reviewing the proposal by Ministry of Finance (MoF) to divide the former Pudu Jail site, better known as Bukit Bintang City Centre (BBCC) into three plots, to ensure the value of the land can be maximised.

UDA chairman Datuk Nur Jaz-lan Mohamed said the study is being conducted by a special committee chaired by a board member before it is presented to MoF for consideration.

He said the development of the 20 acres has to be made carefully and without haste because UDA's survival and almost 1,400 of its employees depends on its successful implementation.

"For UDA, this development marks the continuation of the company's survival for the future, and the board of directors has agreed that any form of development needs to prioritise UDA's interest first," Nur Jazlan said in a statement yesterday.

It was reported that the MoF had asked UDA to divide the former Pudu Jail land into three plots with two being given to Bumiputera companies and the remainder to a non-Bumi entity.

The directive was issued after the MoF did not consider UDA's proposal to appoint a China government-linked company, Everbright International Construction Engineering Corporation, as its joint venture partner for the land.

By Business Times

Land acquisition hurdles highlight new challenges in property sector

PETALING JAYA: The recent snag that hit the projects of two property developer giants, Mah Sing Group Bhd and SP Setia Bhd highlights a new risk faced the sector in terms of landbanking activities.

On Tuesday, both SP Setia and Mah Sing separately announced that they might not successful in acquiring the targeted land parcels.

RHB Research believes that this could be due to the deals getting unattractive to the landowners who expected land value to further appreciate going forward.

“In SP Setia case, Guan Hin Realty, the vendor of a 1,010.5-acre in Beranang, has not agreed to an extension of the period for the fulfillment of the conditions precedent (CP) which include the requirement for the approval of the Estate Land Board for the sale and transfer of the land to the developer. SP Setia, as a result, is currently seeking legal advice,” it said in a report yesterday.

The land was purchased at RM330mil or RM7.50 per sq ft in August.

The development of the land, which will be named Setia Emas, is estimated to yield a gross development value of RM3.5bil.

“While we will not know the outcome of the tussle' yet, we highlight that if SP Setia is unable to win the case, our RNAV (revised net asset value)/share estimate will be eroded by 9.1 sen from the current RM4.15, after excluding the contribution of Setia Emas,” said the research house.

RHB Research said a second parcel in Beranang was acquired from Spektrum Megah, an unrelated party of Guan Hin Realty.

“Given that the acquisition price was higher at RM13 per sq ft, we think SP Setia should not have the same problem in completing the acquisition,” it said.

In the case of Mah Sing, it has encountered a snag in their 60:40 joint-venture (JV) agreement with Asie Sdn Bhd and Usaha Nusantara Sdn Bhd over the 4.08-acre acquisition at Pekeliling.

The vendors have taken the position that the JV agreement had lapsed on Dec 2 given that certain CP in it were not met.

Mah Sing, however, maintained that the agreement had not lapsed, given that they had waived certain CP.

Under the JV agreement, Mah Sing is to undertake a RM900mil mixed development on the Pekeliling land.

Hong Leong Investment Bank said while details were sketchy at this juncture, it believed the hiccup could be legal in nature than commercial.

“Timeline is also an uncertainty given that their JV agreement with the vendor has previously been delayed.

“However, even if the JV were to be called off, we believe impact would be minimal, given their diligent landbanking activities, it said.

Moreover, Mah Sing had enjoyed a record-setting year in sales, having hit RM2bil sales in October,” it said in a report.

By The Star

Teluk Segadas in Pangkor Island to undergo RM20mil development

The Pangkor Island skyline is set to undergo major changes following plans to develop a 121ha piece of idle land in Teluk Segadas into a tourist hub.

Mentri Besar Datuk Seri Dr Zambry Abdul Kadir said the project would consist of houses, which tourists could invest in, as well as boarding houses.

“There will be mixed development on the piece of land, which has been left idle for some 20 years now,” he told reporters after a working visit to the island recently.

Noting that the developer had recently met with him to discuss its plans for the site, Dr Zambry explained that the developer had been holding on to the piece of land due to lack of funding.

“Now that this has been settled, it is all systems go,” he said.

On another matter, Dr Zambry said the state would be setting up additional fishing villages on the island to accommodate its second generation of fishermen.

“Under Budget 2012, the Federal Government had allocated RM20mil for the purpose.

“We are in the process of identifying which are the suitable locations on the island to develop these villages,” he said, adding that fishing villages on the island were located at Teluk Gedong and at the end of Sungai Pinang Kecil, at present.

Dr Zambry also told reporters that the state Public Works Department had been tasked with ensuring public projects were delivered on time.

Citing the island’s RM70mil police station as an example, he said work had been delayed for several months due to a change in contractors.

“I want to see the project completed within the 18-month contract period,” he said, adding that the SM Pangkor hall was also being delayed.

By The Star

I-Bhd praised for roping in China investor

SHAH ALAM: The Selangor state government has applauded I-Bhd for successfully roping in a China company to invest in Selangor.

Mentri Besar Tan Sri Khalid Ibrahim said the state was very supportive of any investment into Selangor and would help to facilitate the investment between I-Bhd and Everbright International Construction Engineering Corp (EICEC) from China.

Both companies had on early this week inked an agreement to co-develop the remaining 30 acres in i-City, Shah Alam.

“The cooperation augurs well for the development of i-City and also to the people in Selangor,” he said during a briefing by I-Bhd regarding the cooperation with its Chinese counterpart yesterday. The briefing was carried out by group chief executive officer Datuk Eu Hong Chew.

Khalid was hoping to see more investment coming into the state and said that this year, about RM1.5bil worth of investments were recorded for the state.

The cooperation between the two companies would see Everbright holding a 70% stake in the deal while the remaining would be held by I-Bhd.

Under the agreement, Everbright would finance the entire construction and lead a consortium of China-based companies to set up operations in i-City, while I-Bhd would be responsible for providing the land, as well as ensuring that the subsequent development would continue to be certified as an MSC Malaysia Cybercentre and a tourism destination.

Everbright chairman and chief executive officer Zhang Huaipu said during the briefing that Everbright was seeking more investment opportunities in Malaysia and also would help to attract more Chinese companies to invest in Selangor.

He also said the group would help to woo more Chinese tourists to i-City.

The mix development on the 30 acre site would be undertaken in two phases, involving 14 acres of land taken up for the initial phase and the balance in the subsequent phase.

The total gross development value of the entire project is tagged at RM3.5bil and expected to be completed in 2020.

By The Star

Mithril to sell office space for RM43mil

PETALING JAYA: Mithril Bhd is selling off 29 parcels of commercial office space in Menara MAA, Kota Kinabalu for RM43.2mil to repay its redeemable convertible secured loan stock (RCSLS).

Mithril is compelled to repay in full the outstanding amounts owing to the RCSLS holders.

In its filing with Bursa Malaysia, the company said the sale was “paramount to avoid an event of default under the terms of the trust deed and deeds of assignment of the RCSLS”.

The proposed disposal is expected to result in a consolidated after-tax loss on disposal of RM5.3mil and represents a discount of about 10.9% on the market value of the properties.

By The Star

Luxury island plan for Rebak

KUALA LUMPUR: DRB-HICOM Bhd is drafting plans to turn Pulau Rebak in Langkawi into a holiday magnet for the rich and famous.

The group wants to develop a "boutique" luxury holiday concept there to match the likes of The Residences at W Bali, Bvlgari Residences and Banyan Tree Ungasan in Bali, Six Senses Private Residences in Vietnam, The Yamu in Phuket, W Residence in Koh Samui and St Regis Saadiyat Island Resort in Abu Dhabi.

"The time has come for Malaysia to have luxury holiday residences that can woo the rich and the famous globally to pick Pulau Rebak as their preferred holiday destination," DRB-HICOM group managing director Datuk Seri Mohd Khamil Jamil said in a statement yesterday.

Mohd Khamil said Pulau Rebak's strategic location and the government's plan to upgrade the holiday haven to be on par with the world's top holiday islands would serve as a catalyst to its aspirations.

"The launch of the Langkawi Tourism Blueprint by Prime Minister Datuk Seri Najib Razak recently, entailing an estimated RM5 billion investment over the next five years, was a welcome initiative.

"I'm confident with the blueprint, coupled with the cooperation and participation of all parties, the government's estimate to double tourism revenue to RM3.8 billion via the arrival of three million tourists to Langkawi by 2015 will be realised," Mohd Khamil added.

The absence of an ultra luxury concept property development on a local holiday island has provided an opportunity for DRB-HICOM to explore the prospect, he said.

"We have been discussing the Pulau Rebak development plan since 2009 and the feedback received from international development consultants, residential property owners and world-class holiday companies is very encouraging," Khamil added.

By Business Times

RM78mil facelift for Singapore Marriott Hotel

New hotel rooms at the Singapore Marriott will have Eames Desk Chairs as dictated by Tang Holdings chairman Tang Wee Kit.

Tang Holdings will invest RM78.4mil (S$32 million) in the refurbishment of Singapore Marriott Hotel on Orchard Road. It is the largest renovation project to date, in the luxury hotel’s 16-year history, and is already underway with Phase One nearing completion.

“The Singapore Marriott Hotel is the crown jewel of Tang Holdings and with every treasure, it is imperative we keep it at its prime,” said Tang Holdings chairman and managing director Tang Wee Kit, who has added a personal touch to the refurbishment exercise. “The hotel has undergone significant refurbishments in the past but we deemed it time to overhaul a number of the spaces to ensure we retain our competitive edge.”

Phase One of the property renovation includes the make-over of the hotel lobby, now called the Marriott Great Room and removes traditional architectural barriers dividing the lobby space into warm open-plan zones where guests can choose to work, relax, drink or dine. The front desk is set against a dramatic, oriental-inspired fretwork, reflecting an Asian influence which interior design firm Hirsch Bedner Associates (HBA) will weave throughout the property, blending east with west.

The second phase of the renovation is currently in progress and consists of a major overhaul of the hotel’s popular Marriott Cafe, Crossroads Cafe and all guest rooms. The project will be completed by April next year.

Hotel general manager Antony Page said, “Our goal is to provide guests with a timeless experience during their stay with the Marriott. We want to create sophisticated and spacious rooms with all the amenities, a modern-day traveller would appreciate. For example, all 372 rooms will be smartly decorated with ergonomically optimised furniture and thoughtful state-of-the-art finishing, reflecting the key personalities of a savvy urban dweller – sophisticated, tasteful, and sleek.”

Rooms will take on a neutral colour palette with bold accent fabrics. Most notably bathrooms will be reconfigured to offer guests greater space with a large walk-in waterfall shower and resting bench as well as extended vanity area, while the newly-installed 46-inch Samsung Full-HD Smart TVs provide guests entertainment experiences. Two signature 1956 leather and enamelled Eames Desk Chairs will be a prominent feature in each new guest room, personally selected by Tang Wee Kit, who has worked closely with HBA to fulfill his desired new look.

A number of aesthetic changes will be made to Crossroads Cafe whilst Marriott Cafe will undergo a complete renovation.

The Singapore city centre hotel opened in 1995 and has been the recipient of a number of awards and accolades. The property recorded 39,243 guests in 2010 and will complete another successful year this month.

By The Star

S’pore loses lustre, investors considering other options like Hong Kong

SINGAPORE: The heavier stamp duties announced last week may have already dented Singapore's standing as a major property investment destination while giving rivals such as Hong Kong a boost, said analysts.

Britain-based consultancy Black Brick Property Solutions said it has received inquiries from Asian and overseas investors who had been thinking of investing in Singapore property, but who have been deterred by the new tax rules.

Other property agencies said they expected more clients to ask about their investment options after the festive period.

The new measures unveiled last week included an extra stamp duty of 10% on a home bought by a foreigner a move expected to dampen foreign demand while increasing interest in markets such as Britain and Hong Kong that do not have restrictions on foreign buyers.

Camilla Dell, managing director of Black Brick Property Solutions, said: “Stamp duty can be significantly reduced in Britain if the property is owned in a company name. Buyers pay very little or no tax on the acquisition.” She added that the tax system was more favourable, particularly for overseas investors who pay no seller's or capital gains tax if they were not British residents. This gives them a tax break of 28% when they sell their properties.

Julian Sedgewick, director of international residential sales at Savills, said: “London, in particular, could stand out because of the good currency exchange rate between the pound and the dollar”. The exchange rate is 1 to about S$2.

Hong Kong is looking attractive too, because of the government's adoption of a non-intervention policy, meaning no restrictions are placed on foreign property investments. Its government also recently said it might reverse some of the property cooling curbs if the economic situation worsens.

Another spin-off from the stamp duty move could be that foreign developers and agencies might get more aggressive marketing their properties here as investors in Singapore look elsewhere, said Chua Yang Liang, head of research at Jones Lang LaSalle (JLL).

Although local and foreign investors with a short-term outlook would have more of an appetite for properties outside of Singapore now, many analysts predict that the pool of foreign buyers in Singapore would not dry up. The Straits Times

These include buyers from Indonesia, Malaysia, India and China.

“Businesses are still investing in Singapore and the country is still considered an attractive place to work, live and visit,” said Chua.

By The Straits Times Singapore

China's Everbright investing RM2bil in i-City

Working together: (from left) I-Bhd chairman Tan Sri Lim Kim Hong, China Enterprises Association in Malaysia president Zheng Jingbo, Chai, Chor and Zhang at the signing ceremony

PETALING JAYA: I-Bhd has entered into a 30:70 joint venture (JV) with Everbright International China to co-develop 30 acres in i-City, Shah Alam.

“The development will be done in two phases. Phase one, involving 14 acres with a GDV of RM1.5bil, will comprise a one-million-sq-ft shopping mall and two-million-sq-ft mixed residential, MSC (Multimedia Super Corridor) offices and educational institute.

“The second phase has a GDV of RM2bil involving 16 acres,” group CEO Datuk Eu Hong Chew said at the joint venture agreement signing ceremony yesterday. The event was witnessed by Housing and Local Government Minister Datuk Seri Chor Chee Heung and Chinese Ambassador Chai Xi.

Eu said phase one was expected to be completed in 2016 or 2017 while the whole project, with a GDV of RM3.5bil, was expected to be completed by 2020. Construction works are expected to start next year.

“We have developed half of i-City already and the balance would be developed by Everbright,” Eu said.

Apart from financing the construction, Everbright would also lead a consortium of Chinese companies to set up operations in i-City.

“We will be investing RM2bil with I-Bhd to develop i-City's commercial project,” Everbright chairman/CEO Zhang HuaiPu said.

There have been several major investments from China recently.

Last week. China's Shougang group announced a joint venture with Hiap Teck Venture Bhd to build an integrated steel complex in Kemaman, Terengganu.

Aluminium Corp of China has recently entered into a JV with Gulf International Investment Group Holdings Sdn Bhd and UAE-based business leader Mohamed Ali Rashed Alabbar to develop a US$1.6bil (RM5bil) aluminium smelting plant in Sarawak.

By The Star

I-Bhd in construction venture with Everbright

PETALING JAYA: I-Bhd yesterday entered into a strategic alliance with China-based Everbright International China to co-develop 12.14 hectares of land in i-City via a joint venture.

Everbright will have a 70 per cent shareholding in the venture. I-Bhd, in a statement here yesterday, said it will hold the balance stake.

Apart from financing the construction, Everbright will also lead a consortium of Chinese companies to set up operations in i-City, Shah Alam.

The development will be undertaken in two phases involving 5.66ha for the initial phase and the balance 6.47ha in the subsequent phase.

The first phase of the development is for a commercial hub with a gross development value of RM1.5 billion comprising a 92,903 sq m shopping mall and 185,206 sq m of mixed residential, MSC offices and educational institute.

By Bernama

Mah Sing disputes JV partners’ claims

KUALA LUMPUR: Mah Sing Group Bhd has disputed its joint-venture partners' claims that the joint venture agreement (JVA) for the proposed joint-venture development on 4.08 acres along Jalan Tun Razak has lapsed.

Mah Sing said Asie Sdn Bhd and Usaha Nusantara Sdn Bhd through their solicitors had taken the position that the JVA had lapsed and was of no effect from Dec 2 “as they inter alia take the position that the conditions precedent in the JVA were not met.”

“Mah Sing, however, takes a different position and maintains that the JVA has not lapsed and as stated in our announcement dated Dec 6, has waived the conditions precedent 2.6.2(b), 2.6.2(c), 2.6.2(d) and 2.6.2(e) as set out in the announcement dated Aug 2.

“Mah Sing's solicitors have today issued a letter to Asie's and Usaha Nusantara's solicitors inter alia maintaining this position.

“Together with the letter, Mah Sing's solicitors also returned the RM6.4mil deposit (with interest earned thereon) attempted to be refunded by Asie and Usaha Nusantara as Mah Sing is unable to accept the refund of the deposit,” it said.

Mah Sing had in August this year secured the development rights for a 4.08-acre parcel along Jalan Tun Razak-Jalan Pahang, which formerly housed the Pekeliling flats.

Mah Sing's wholly-owned subsidiary, Grand Pavilion Development Sdn Bhd, had entered into a joint venture agreement with privately-held Asie Sdn Bhd and its unit, Usaha Nusantara Sdn Bhd, to undertake a niche development named M Sentral with a potential gross development value of RM900mil.

By The Star

Ban Guan Hin rejects SP Setia’s extension request

KUALA LUMPUR: SP Setia Bhd's request for an extension to fulfill some conditions for its proposed acquisition of 1,010.5 acres in Ulu Langat, Selangor for RM330.1mil was not agreed by vendor, Ban Guan Hin Realty Sdn Bhd.

According to SP Setia, in filing to Bursa Malaysia yesterday, conditions precedent included the approval of the Estate Land Board to be obtained for the sale and transfer of the said land to the purchaser.

“The purchaser is currently seeking legal advice on its position under the sale and purchase agreement and will seek the appropriate relief from the court, if necessary,” it said.

SP Setia had planned a mixed development for the land and was committed to building starter homes priced from RM300,000 onwards.

By The Star

Halifax expects British house prices to be stagnant for next year

LONDON: Britain's housing market is likely to stagnate in 2012, with low interest rates offset by a squeeze on household budgets, according to mortgage lender Halifax.

In its outlook for next year, Halifax said it expected house prices to end 2012 in a range of down 2% to up 2%. Prospects for Britain's economy were “particularly uncertain” but the likelihood of the Bank of England leaving interest rates at a record low 0.5% for the foreseeable future would help support the market, it said. 

“Overall, we expect continuing broad stability in house prices nationally during 2012. Prices are again likely to end the year at levels close to where they begin with the market continuing to lack any real direction,” said Halifax economist Martin Ellis.

However, demand for homes would be constrained by rising unemployment and the weak outlook for growth.

“These pressures will come from a combination of subdued earnings growth, high (but falling) inflation, the substantial fiscal tightening that is taking place and an ongoing rebalancing of household sector finances with many families seeking to reduce their debts,” Ellis said.

Meanwhile, Britain had 11% more houses valued at 1mil or more available for purchase in the third quarter than it did a year earlier, Investec Specialist Bank said in a report yesterday.

 By Agencies

Housing regulator sues Chicago

WASHINGTON: The Federal Housing Finance Agency said it was suing the city of Chicago to prevent it from enforcing a recently amended ordinance dealing with vacant properties.

FHFA said it was acting on its own behalf and as the conservator for Fannie Mae and Freddie Mac and said it had taken the action reluctantly after trying unsuccessfully to work the issue out with the city.

By Reuters

PLB Land to buy land in Penang

KUALA LUMPUR: PLB Engineering Bhd’s unit, PLB Land Sdn Bhd, has agreed to buy two plots of land in Ayer Itam, Penang, from individual vendors for RM6.5 milion last Friday.

The plots, measuring 4,563 sq m and 5,178 sq m respectively, will be used for future development, the company said in a filing to Bursa Malaysia yesterday.

By Business Times

I-Berhad inks pact with Everbright Intl

I-Berhad today entered into a strategic alliance with China-based, Everbright International China, to co-develop 12.14 hectares (30 acres) of land in i-City via a joint venture.

Everbright will have a 70 per cent shareholding in the venture. I-Berhad, in a statement here today, said it would hold the balance 30 per cent stake.

Apart from financing the construction, Everbright will also lead a consortium of Chinese companies to set up operations in i-City, Shah Alam.

The development will be undertaken in two phases involving 5.66 hectares (14 acres) for the initial phase and the balance 6.47 hectares (16 acres) in the
subsequent phase.

The first phase of the development is for a commercial hub with a gross development value of RM1.5 billion comprising a 92,903 sq m (one million sq ft) shopping mall and 185,206 sq m (two million sq ft) of mixed residential, MSC offices and educational institute. Work on the project is expected to begin by mid-2012.

By Bernama

Seri Alam in JV with S’pore company to build international school in Iskandar

PETALING JAYA: United Malayan Land Bhd's (UM Land) fully-owned subsidiary, Seri Alam Properties Sdn Bhd, has formed a joint-venture company with Singaporean educational management company Raffles Campus Pte Ltd called Raffles Campus (Seri Alam) Sdn Bhd (RCSA) to develop an international school in Bandar Seri Alam, within Iskandar Malaysia in Johor.

The campus will spread over 20 acres next to the Universiti Teknologi Mara campus in Bandar Seri Alam.

Seri Alam Properties entered into a sales and purchase agreement on Sunday with RCSA for the proposed acquisition of a freehold land measuring 19.71 acres for RM10.83mil.

At least 230,000 sq ft will be allocated for the built-up area, excluding staff residences and students' hostel.

The school, Excelsior International School, will feature state-of-the-art facilities catering to up to 2,000 students.

An international curriculum will be offered for children from kindergarten up to high school. A management team from Raffles Campus will manage the school.

The design of the campus has been completed. Construction will begin in January 2012 and is expected to be completed in June 2013.

Raffles Campus is a wholly-owned subsidiary of Strategic Technology for Education and Academic Management Pte Ltd, which is 70% owned by Strategic Foundation Ltd (a non-profit organisation). The school will be its first in Malaysia and will commence admission assessments and enrolments in early 2013.

From this project, RCSA hopes to add prestige to the Bandar Seri Alam township and enhance capital values by providing quality and wholesome living for its residents.

UM Land's share trading was halted from 9am to 10am yesterday in view of the company's announcement.

In a statement, Raffles Campus chairman and chief executive officer Ng Boon Yew said: “The school will take into consideration local requirements and, although the medium of instruction will be in English, all the students will be encouraged to learn their mother-tongue as either first or second language.”

By The Star

UDA to build affordable shoplots

ROMPIN: UDA Holdings Bhd will build affordable shoplots at 15 strategic locations with a RM30 million allocation provided by the government.

Its chairman Datuk Nur Jazlan Mohamed said among the locations identified for the "kedai desa" were Kuala Pahang, Kuala Rompin and Mentakab (Pahang); Changkat Jong and Pangkalan Alor (Perak); Muar and Ledang (Johor); Jasin (Malacca); Kuala Pilah (Negeri Sembilan) and Jeli (Kelantan).

He said each location will have between five and eight double-storey units depending on the cost involved and the demand in the areas.

He said the cost for each location would only be RM2 million on average as the sites would be provided by the local authorities.

Construction of each project will only take eight months and once completed, UDA will hand it to the respective local authorities.

The local authority will then let the shoplots to local entrepreneurs at reasonable rates, Nur Jazlan said at the signing of a memorandum of understanding in Rompin, Pahang, yesterday.

By Business Times

Ascott plans to double portfolio in Malaysia

KUALA LUMPUR: Singapore-based The Ascott Ltd, the world's largest international serviced residence owner-operator, plans to double its serviced apartment portfolio in Malaysia over the next five years.

Ascott regional general manager for Singapore and Malaysia, Tan Boon Khai said it aims to open one or two properties a year as it is bullish on the market.

"We see Malaysia as a very good market. Although there is economic recession in some countries, Malaysia is holding up," Tan told Business Times.

"There is a lot of foreign investments flowing into Malaysia. This alone will create demand for our properties. The more properties we have, there will be economies of scale," he said.

Ascott aims to own and manage serviced apartments in Sabah and Sarawak, Johor and Penang. It plans to build the properties from scratch, or buy over existing buildings, Tan said.

Currently, Ascott owns and manages Ascott Kuala Lumpur, Somerset Seri Bukit Ceylon and Somerset Ampang. It also manages Marc Service Suites and Tiffani by i-Zen for third parties.

The average occupancy for the five operating properties between January and October 2011 was 62 per cent.

Over the next five years, the group will manage Ascott Sentral Kuala Lumpur (owned by GSB Sentral Sdn Bhd, an associate of MRCB and Gapurna Group); Citadines Uplands Kuching; Citadines D'Pulze Cyberjaya; Somerset Puteri Harbour, (owned by Nusajaya Consolidated Sdn Bhd and a joint venture between United Malayan Land Bhd and UEM Land Bhd); and Somerset Uptown Damansara (owned by See Hoy Chan Sdn Bhd).

"If the owners are keen to sell their serviced apartments, we will consider exploring. The trend is building where people want to stay in serviced apartments during their travel. We will look at all angles to grow," Tan said.

It operates serviced apartments under three brands - Ascott, Citadines and Somerset.

The flagship Ascott-branded properties are premier serviced residences that offer residents discreet service in an exclusive environment.

Citadines serviced residences cater to independent travellers while Somerset serviced residences are designed for business executives who travel with their families.

The Ascott has about 22,000 operating serviced residence units in key cities of Asia Pacific, Europe and the Gulf region.

By Business Times