Affordable housing agenda

1MDB plans to bluild 10,000 affordable housing units in the Klang Valley in the next 10-15 years.

1MDB plans to start off Bandar M’sia project with units priced from RM220,000-RM300,000

PETALING JAYA: 1Malaysia Development Bhd (1MDB) will kick- start the development of the Bandar Malaysia project in Sungei Besi with the launch of affordable housing units within the next one to two years, said senior vice-president, of planning, development and real estate, Juraimi Azahar Taharin.

Juraimi said the 1MDB affordable housing concept, complete with a prototype unit, would be unveiled soon to seek input from the public as part of its information gathering exercise to find out the facilities that were needed to best serve the target buyers.

“One of the purposes of this feedback exercise is to align the developer's plan with what the market requires. What we have in mind is to build housing units of between 800 sq ft and 1,000 sq ft at an estimated price of RM220,000 to RM300,000. Both are subject to the findings of the survey,” Juraimi told StarBiz.

Juraimi says a protype affordable housing unit of Bandar Malaysia will soon be unveiled to the public.

He said 1MDB's affordable housing programme was aimed at providing modern and quality affordable living in the city for young families.

“One of the key focus will be on sustainable development and facilities for child care and transit centres for the young and older children,” he said. He added that 1MDB was working with PRIMA for its affordable housing schemes, and was looking to build 10,000 affordable housing units in the Klang Valley over the next 10 to 15 years.

The locations for the housing projects are currently being finalised, but one of the main criteria is that they have to be in areas that have easy accessibility and connectivity. The scheme is open to all Malaysians with household monthly income of less than RM6,000 and they are buying their first house for their own occupancy.

1MDB is a government-owned master developer for the redevelopment of the 495-acre Bandar Malaysia in Sungei Besi, which used to be the base for the Royal Malaysian Air Force (RMAF).

The developer signed a sale and purchase agreement in June with the Federal Land Commissioner for the transfer of the 495 acres of Sungai Besi airport land to 1MDB.

The mixed development project with livability and sustainability as its distinctive characters, aims to be a new and vibrant landmark that reflects the aspirations of a Greater Kuala Lumpur.

1MDB is working with the Malaysian Institute of Planners in organising an international master planning design competition for Bandar Malaysia that is open to local and international urban planners.

The key principles to be included in the plans are planning and design; ecological footprint; infrastructure; diverse housing solutions; transportation; open space, parks and green density; innovation in land structure; urban solutions; technology; history and culture.

The result, expected to be announced in July next year, will be the basis for Bandar Malaysia's urban planning. Juraimi said the priority was to ensure the relocation process of the RMAF base went on smoothly. The relocation process will be done over several years in several phases.

1MDB has to ensure that RMAF has an appropriate place to move their assets and operations, as well as they are comfortably functional at the new location.

“Discussions with regards to the relocation is on-going with the help of Malaysian Armed Force Fund Board and areas such as Subang, Sendayan, Butterworth as well as Kuantan have been identified for the purpose,” he added.

By The Star

Sunway, Khazanah in Iskandar land pact

Sunway Bhd has acquired two parcels of land in Medini Iskandar, Johor, through a joint-venture (JV) vehicle with Khazanah Nasional Bhd.

In a statement today, Sunway said the 276.4 hectares, with an estimated gross development value (GDV) of RM12 billion, were acquired for RM745.3 million.

Sunway said it has formed a JV company, Semerah Cahaya Sdn Bhd, with Khazanah's unit, Dayang Bunting Ventures Sdn Bhd.

"The company will be principally involved in conceptualising, managing, implementing and developing the said land.

"Sunway currently holds 38 per cent in the JV but will increase it to 60 per cent within 54 months from the date of the lease purchase agreement," it said.

It said with the acquisition, the company would have 302ha of development land in Johor, in addition to the existing land at Bukit Lenang, with estimated total GDV of RM13 billion.

Sunway chairman, Tan Sri Jeffrey Cheah Fook Ling, said the land acquisition was in line with the company's strategy to continue extending its expertise in building and managing integrated cities.

"We want to replicate this expertise in Johor and develop an iconic development which will capture the local, regional and international market segments as we have done with our integrated developments," he said.

He said the project was expected to contribute positively to Sunway’s future earnings and cash flow by 2013.

By Bernama

DRB-Hicom: Rebak developers shortlisted

DRB-Hicom Bhd has short-listed several leading developers from Asia and Europe for the development of Rebak Island in Langkawi.

In a statement here today, it said the development of the island would push up Rebak Island's name to be on par with other famous island resorts in the world.

It will directly position Langkawi as not only an attractive destination in terms of its natural beauty but also its offer of a unique luxury holiday resort catering to the elites of the world, it said.

DRB-Hicom Head of Property, Asset and Construction, Zamri Yusof, said in order to ensure that there is extensive marketing for the development of the island to both domestic and foreign investors, the existing land title status would have to be changed from the Malay reserve status.

He said the company's collaboration with leading property developers will provide DRB-Hicom the opportunity to work with them and share their expertise and experience.

"In fact, DRB-Hicom is in the final stages of getting approval for the conversion of the land status prior to presenting it to the Kedah state government for approval," he said.

By Bernama

HK luxury home rents at 'tipping point'

Hong Kong luxury home rents, which fell last quarter for the first time since mid-2009, may slump 10 percent next year as banks and hedge funds scale back amid the threat of a global recession, according to brokers including Jones Lang LaSalle Inc. and Colliers International.

“We’re definitely at that tipping point,” said Anne-Marie Sage, Hong Kong-based head of residential leasing at Jones Lang, the world’s second-largest commercial brokerage.

“We’ve began to see vacancies at the very top end of the market. The banking and the financial sector have basically stopped all movement.”

By Bloomberg

KL City Hall to spend RM84mil to tackle floods

KUALA LUMPUR: City Hall (DBKL) will allocate RM84.1mil next year to tackle flash floods, Mayor Tan Sri Ahmad Fuad Ismail said.

Of the amount, RM10.35mil will be from DBKL, RM10mil from the 10th Malaysia Plan allocation, RM4.25mil from the flood mitigation allocation and RM59.5mil from the Greater Kuala Lumpur/Klang Valley allocation through the "River of Life" programme which will give a new breath of life to the Klang and Gombak rivers.

"DBKL expects the main challenge for us will be to tackle the flash flood which causes damage to properties and threatens lives," he said when tabling DBKL's 2012 Budget.

He said several plans were being drawn up to tackle the problem especially at Jalan Tun Razak, among them by creating a diversion to divert the water from Sungai Bunus to Titiwangsa Lake before channelling it to Sungai Gombak.

Two retention ponds at Air Panas and Setapak Jaya would also be upgraded at the cost of RM20mil to slow down the flow of waters into Sungai Bunus, he said. The Department of Irrigation and Drainage was preparing a working paper for the purpose.

Ahmad Fuad said DBKL also planned to develop housing areas to address the squatter problem and provide 1,620 units of affordable houses, proposed for construction in Kampung Wira Jaya and Setia Jaya in Setapak, Indian Settlement in Kampung Pandan and Sungai Udang in Segambut.

DBKL will also allocate RM96.75mil to repave 33 main roads over 118.71km as well as public roads and streets with a combined length of about 2,000km.

"This includes repairing roads, drains and dangerous intersections," he said.

By Bernama

Sunway flaunts its assets

SUNWAY Bhd is targeting RM50 million in sales at the Sunway Integrated Properties Show 2011 - Christmas Edition at Sunway Pyramid in Bandar Sunway this weekend.

The group's property development division is introducing a variety of properties at its 12 on-going projects in Greater Kuala Lumpur, Ipoh and Penang.

The projects are Sunway Nexis SOHO and Sunway Rymba Hills at Sunway Damansara, Sunway Velocity serviced apartment in Kuala Lumpur, Sunway 27 Square and Sunway Alam Suria at Shah Alam, Sunway Vivaldi at Mont Kiara, Sunway Montana and Sunway Rydgeway at Melawati, A'marine, BayRocks and LaCosta at Sunway South Quay Bandar Sunway, and MontBleu Residence in Ipoh.

Ong Ghee Bin, chief operating officer of Sunway's property development division, said it will be showcasing properties priced between RM481,000 for a townhouse in Ipoh, and about RM6.5 million for a luxury bungalow in Greater Kuala Lumpur.

"A lot of investors are looking for integrated developments to buy properties. For Sunway, we are the pioneer in integrated developments and have a strong following. Therefore, we are bullish of meeting our sales target," Ong said in an interview with Business Times yesterday.

To appeal to buyers, the division is introducing, for the first time, a down-payment of only RM10,000, which can be spread over a year. However, this is subject to a 90 per cent loan margin and applicable to selected properties like Sunway Nexus SOHO, Sunway Velocity and LaCosta.

"We believe the RM10,000 low down-payment scheme will attract many first-time buyers. We plan to hold this event annually, but each year the incentives will differ," Ong said.

Sunway is expecting 15,000 visitors at the property showcase, which ends tomorrow. This is the first time Sunway is showcasing all its products as a merged entity. Sunway, which has a market capitalisation of RM3 billion to RM3.5 billion, is the result of a merger between Sunway Holdings Bhd and Sunway City Bhd.

By Business Times

Measures push down China property prices

AS China's property market experiences a slowdown in recent months, developers in the country are digging deep to walk out of the tough times unscathed.

The average price of residential properties across 100 Chinese cities surveyed fell to 8,832 yuan (RM4,416) per sq m in November, which was a 0.28% decline from October, according to a report released by the China Real Estate Index System.

House prices declined for the third straight month after the government moved to cool the overly-hot market with a wave of tightening measures early this year.

Yu: ‘We believe that property will still be in the government’s social development agenda. So, it’s a question of when it will start rela xing its policies again.’

In 10 first-tier cities such as Beijing, Shanghai and Tianjin, house prices decreased 0.36% month-on-month to 15,663 yuan (RM7,831) per sq m while Nanjing and Chengdu saw a sharp decline of up to 1.2%.

The drastic measures include restricting locals and foreigners from owning more than one or two homes, imposing annual property tax in some cities and requiring buyers to pay a minimum downpayment of 30% of the value for the first property and 60% for a second unit.

For second hand property, the downpayment ranges from 40% to 60% depending on the age of the property.

Other policies such as ensuring banks impose mortgage rates 1.1 times the benchmark lending rate and imposing a full business tax payment for a property that is resold in less than five years, have all contributed to a slowdown in property sales and prices.

Except for a recent move by the People's Bank of China to cut reserve requirements for banks by 50 basis points starting Dec 5, the government has shown no further sign of loosening the regulations as it is steadfast in bringing market prices to reasonable levels.

The situation leaves cash-strapped developers with no choice but to offer 20% discount for their units amid uncertainties in the real estate market.

During a recent interview with StarBizWeek, Shanghai Firstreach Real Estate Co Ltd, a wholly-owned Malaysian property developer, related how it responds to the slowdown in the market.

Its chief operating officer Yu Tat Loong says despite the strict control measures, China's property market still has good prospects.

Setting trends: The Imago Mall along with Imago Tower has become an iconic development for Shanghai Firstreach Real Estate, a wholly-owned Malaysian property developer in China.

“We will still expand our operations here because long-term wise there is room for development even in first-tier cities and especially so in second and third-tier cities,” Yu shares of the company's plans.

Incorporated in Shanghai in 1997 with a start-up capital of 330 million yuan (RM165mil), the company bought a piece of land in Putuo district, within Shanghai's inner ring road, for the development of the Palm Garden condominium project.

The first phase with more than 350 bare-shell units was completed in 2003. Two years later, the construction of the second phase with another 600 units began. The entire project was completed in 2008 with a total gross development value (GDV) of approximately 2.5 billion yuan (RM1.25bil).

The company also completed a 110,000 sq m commercial development called Imago, on the land adjacent to Palm Garden, which hosts an office tower, a shopping mall and serviced residences with a GDV of four billion yuan (RM2bil). Oakwood Residence Shanghai opened in April 2010, followed by a six-storey Imago Mall in June 2010 and a 24-storey Imago Tower in January this year, all managed in-house.

Yu says the office spaces at Imago Tower and the serviced apartment units are not for sale.

“Many developers are facing funding problems this year and are forced to sell their residential units at a lower price to ease their cashflow. We sold off a significant number of units at Palm Garden early and have an asset in Imago, which can generate recurring revenue to sustain our operations,” he says.

Optimistic outlook

He says the company, even with an apartment block at Palm Garden not yet sold, amid the downward trend in residential prices in the city, decided to hold onto the properties at Imago as it was convinced that the market would rebound after a correction.

“If the remaining units were sold at a lower price, there would be cash going back to the system. But, we are no longer dependent on the sale of apartments to keep us running, so we decided to keep them,” he adds.

In 2003, the units at Palm Garden were sold for an average of 7,000 yuan (RM3,500) per sq m. The units of the second phase were then sold in 2007 at 18,000 yuan (RM9,000) and reached 35,000 yuan (RM17,500) by 2009. Over the past eight years, the prices have increased five to six-fold.

During the first quarter (Q1) of 2011, Palm Garden saw prices average at 38,000 yuan (RM19,000) per sq m before going up to 39,000 yuan (RM19,500) in the second quarter (Q2). The price reached 40,000 yuan (RM20,000) by the fourth quarter (Q4).

Yu hopes the government will relax its regulatory policies on the housing market so that developers like Shanghai Firstreach will be able to chart their expansion plans, especially on residential projects.

“There is definitely a demand but it is just that house buyers are adopting a wait-and-see attitude hoping developers will further lower their prices. If these policies are still in place, going into residential projects will be more risky with escalating land cost and sluggish sales,” Yu says.

“We believe that, be it affordable housing or more luxurious apartments, property will still be in the government's social development agenda. So, it's a question of when it will start relaxing its policies again.”

Yu says Shanghai Firstreach has made the right choice by venturing into commercial and retail property sector earlier as this has cushioned the impact that stringent housing policies have brought about.

“The prospect of commercial projects is positive. Shanghai has seen rental rates at office towers escalating. Despite the fact there are already so many properties up, there is still a demand for quality office space and that's why we have made two upward adjustments to our rental rate in the second half of the year,” he says.

Imago Tower, with an international tenant portfolio of Malaysians, Singaporeans, Japanese, South Koreans, French and Germans, saw gross rental averaging at 4.50 yuan (RM2.25) per sq m a day in Q1 before revising to five yuan (RM2.50) in Q3 and six yuan (RM3) by Q4.

The 11-month-old Imago Tower has an occupancy rate of 60% while Imago Mall is almost 97% occupied by retailers, restaurants and a supermarket.

Yu says the retail market was booming from an increasing domestic demand with many foreign brands such as Uniqlo, Charles & Keith, Morgan, Oasis and Zara expanding fast. Zara has opened its largest store in the East China region at Imago Mall.

“Old tenants may have moved out but new ones come in paying higher rental. Gross rental on the ground floor of Imago Mall has reached 35 yuan (RM18) per sq m a day. You can see that retailers are confident with the market and with us,” he says.

Besides Palm Garden and Imago, the developer admits that it still does not have enough iconic developments for it to have a firm foothold in Shanghai.

The company is set to increase its land bank in the city and surrounding cities.

“We are acquiring another piece of land in Shanghai for a residential and commercial-cum-mall development. We are also in the midst of negotiations to build and operate a retail mall in the heart of Suzhou,” he says.

“At the same time, we are bringing our experience back to Malaysia and providing retail consultancy and management for a 160,000 sq m mall there,” says Yu.

With a lesser-known track record than its Singaporean counterparts, who outnumber Malaysian developers in China, Shanghai Firstreach had some problems to market its properties initially.

“Many retailers and house buyers are not familiar with Malaysia. But we tell them we are a Malaysian company and with the experience we have over the past two decades, we are bringing an international-type management to China's property market,” he says.

By The Star

Projects of two developers hit a snag

Two prominent developers are put in a tight spot after the owners of the land on which their development is to be carried out, abruptly end the agreements to sell the land.

Mah Sing Group Bhd and SP Setia Bhd see their potential projects in Pekeliling and Beranang respectively, disrupted but they are still keen to pursue them.

Earlier this week, the two companies separately announced that they might not be successful in acquiring the targeted parcels of land.

Analysts say the reason for the cancellation of the agreements could be because of dispute over the land price, which the owners claim is below the current market price.

According to an industry analyst, it would be a disappointment for Mah Sing to lose the project, but it would not be a major blow to the company as it has many other projects in the pipeline.

“Although Mah Sing would only develop four acres of the M Sentral project, it is also eyeing to be a partner for the rest of the Pekeliling concession land which spans 58 acres,” he says.

He says Mah Sing will fork out RM106.6mil for the four acres, which translates into RM600 per sq ft, while the average market value of land in Kuala Lumpur is between RM1,500 and RM2,000 per sq ft.

“I believe Mah Sing will re-negotiate with the landowners but it's too early to tell of the outcome,” he says.

On Tuesday, Mah Sing brushed aside its partners' claims that the joint venture agreement (JVA) for the proposed development on the four acres along Jalan Tun Razak has lapsed.

Mah Sing says Asie Sdn Bhd and Usaha Nusantara Sdn Bhd, through their solicitors, have taken the position that the JVA has lapsed and is of no effect from Dec 2.

Mah Sing, however, maintains that the JVA has not lapsed.According to an RHB Research report in August, Mah Sing has announced a 60:40 joint venture with Asie to develop the four acres of leasehold land along Jalan Tun Razak- Jalan Pahang into M Sentral - a mixed development with GDV of RM900mil.

The report says the site is formerly called the Tunku Abdul Rahman flats or commonly known as the Pekeliling flats, and that the land is ready for immediate development, given that demolition works and partial earthworks have been completed.

RHB Research says Mah Sing will pay RM106.6mil for the 4.08 acres, to be settled via 60% cash and a 40% stake of the JV company to Asie.

“Mah Sing may also be the potential JV partner for the rest of the Pekeliling concession land, which spans 58 acres which would be renamed the Riverside Garden City Mega Project with a potential GDV of RM9bil,” says RHB Research.

Meanwhile, Hong Leong Investment Bank says the financial impact of the Pekeliling project is uncertain, given that Mah Sing is busy with a number of projects including its flagship developments in Icon City and M City, and M Residence @ Rawang.

“Even if the JV is to be called off, we believe impact would be minimal, given Mah Sing's diligent land banking activities.

“Moreover, Mah Sing has enjoyed a record-setting year in sales, having hit RM2bil in October,” says Hong Leong Investment.

For SP Setia, another analyst says that it could be due to a disagreement in the quoted land price.

The vendor Ban Guan Hin Realty's 1,010.5 acre land in Beranang is purchased at RM330mil or RM7.50 per sq ft and SP Setia has bought a second parcel land in Beranang from Spektrum Megah at RM13 per sq ft.

“I believe SP Setia is ready to negotiate with Ban Guan Hin,” he says.

On Tuesday, SP Setia Bhd announced that its 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 agreeable by Ban Guan Hin.

In filing with Bursa Malaysia, SP Setia said the conditions for the land buy included an approval from the Estate Land Board for the sale and transfer of the land.

It is currently seeking legal advice on its position under the sale and purchase agreement and will seek an appropriate relief from the court, if necessary.

SP Setia has planned a mixed development project and is committed to build starter homes priced from RM300,000.

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

A ramp has been planned to connect to the Lekas highway.

“While we will not know the outcome of the tussle', we highlight that in the event that SP Setia is unable to win the case, our RNAV/share estimate will be eroded by 9.1 sen from the current RM4.15, after excluding the contribution of Setia Emas.

“Thus far, SP Setia has only paid 10% deposit, and it is refundable since the fulfilment period has lapsed,” says RHB Research.

By The Star

L&G property unit gets RM90mil credit facility

KUALA LUMPUR: Land & General Bhd (L&G) subsidiary Sri Damansara Sdn Bhd has secured RM90mil credit facility from OCBC Bank (Malaysia) Bhd.

The facility was to enable the company to undertake a condominium project, called Damansara Foresta in Bandar Sri Damansara, and for general working capital, it said in a filing with Bursa Malaysia.

Sri Damansara, a property development company, has an issued capital RM69mil.

By Bernama

Malaysia property mart expected to moderate next year

KUALA LUMPUR: The property market is expected to moderate in 2012 due to continued slowdown in global economy amid growing concerns on the Eurozone debt.

The uncertainty in the market in view of the impact from the upcoming 13th general election will also influence the expected lacklustre performance in the property sector next year.

Association of Valuers, Property Managers, Estate Agents and Property Consultants in the Private Sector (PEPS) immediate past president James Wong said he expects banks to be more conscious in loan approval next year as loan eligibility is now based on net income as compared to gross income previously.

"Over the years, property sector experienced oversupply of product, especially in the high-end condominium and offices. In addition to other factors that were mentioned, we expect to see a dip in property market performance next year," Wong said.

During the first half of this year, the property market registered an overwhelming 214,764 transactions worth RM64.75 billion. This represents a growth of 18 per cent and 29.7 per cent respectively against the same period in 2010.

"The year 2010 was acknowledged by all as a good year for the residential sector, which was then reflected in the volume and value of transactions," said Wong.

The market was expected to soften this year but it went against the odds, spurred by government projects, especially those under the Economic Transformation Programme (ETP).

PEPS president Choy Yue Kwong said the world is concerned with the possible contagion effect of the Eurozone financial crisis.

"Locally, home property prices have risen significantly over the past two and a half years and the market is concerned if there will be a property bubble," Choy said.

He said these are among the issues that will be discussed in the upcoming Fifth Malaysian Property Summit 2012 (5MPS), which will be held on January 17 next year.

PEPS, which is the organiser of 5MPS, has lined up eminent speakers like Knight and Frank Malaysia managing director Eric YH Ooi, KGV International Property Consultants (M) Sdn Bhd executive director Anthony Chua Kian Beng and deputy managing director CH Williams Talhar and Wong Sdn Bhd Danny SK Yeo. - By Zurinna Raja Adam

By Business Times

Hunza plans RM7b Penang project

GEORGE TOWN: Hunza Properties Bhd will submit plans to the local authorities next year for a mixed-development project in Bayan Baru with a gross development value (GDV) of RM6bil to RM7bil.

Executive chairman Datuk Khor Teng Tong told a press conference after the company's AGM that the group had engaged a couple of architects from Singapore to draw a master plan for the project sited on over 16.2ha, opposite the Bukit Jambul Complex.

Khor said the group had just acquired 2ha for the development of 1,000 units of low-cost homes for the households currently occupying the over 16.2ha site.

“We have initiated steps to obtain approval from the local authorities to develop the low-cost homes. Once the approval is obtained, it will take about 18 months to complete the low-cost project,” he said.

On the Gurney Paragon Mall, Khor said the second phase of the project would be completed next year-end and would open in March 2013. The second phase, comprising the corporate headquarters and shopping mall, was now 50% completed.

“The first phase has been completed with certificate of fitness obtained,” Khor said.

By The Star

Hunza to submit Bayan Baru plan mid-2012

Hunza Properties Bhd (HPB) expects to submit plans to the relevant authorities by the middle of next year for its proposed integrated development in Bayan Baru on Penang island.

The company's executive chairman Datuk Khor Teng Tong yesterday said that international consultants have begun working on a masterplan for the development, which is expected to carry a development value of between RM6 billion and RM7 billion.

The company had purchased 16.9 ha of prime land in Bayan Baru for RM82 million.

"Our plans will be in tandem with the Penang state goverment's vision to turn the island state into an international city," Khor told reporters after the company's annual shareholders meeting.

Khor said the company has initiated getting the necessary approvals from the state authorities to build affordable housing units for squatters affected by the proposed project.

"Over and above the 16.9ha land, we also purchased 1.6 ha in the surrounding area in order to build around 1,000 low-cost units to house the affected squatters," he added.

"Once all approvals are obtained, we expect to complete building the affordable homes within 18 months."

Khor also said the Gurney Paragon condominiums, which are located at the sea-fronting Gurney Drive promenade, are now 70 per cent sold with its certificate of fitness for occupation obtained in June this year.

"Construction work on our Gurney Paragon lifestyle shopping mall continues and is targeted for completion during the second half of 2012," he said, adding that the first phase of the Gurney Paragon mall (which comprises food and beverage outlets housed in the historical St Joseph's Novitiate premises) will open soon.

He added that HPB's leasing team has been tasked with ensuring an optimum tenant mix and one of the main features of the new mall would be to bring in established shops and operators that are not present in Penang as yet.

For its 2011 financial year ended June 30, HPB recorded RM63.7 million in net profit after tax and minority interest. This compares with RM50.9 million during the previous corresponding year.

By Business Times

Zero in on luxury houses in Shah Alam

Spacious: The Saujana O-lot villas are constructed to give house owners an ample private area similar to those of a bungalow.

BREAKING away from the conventional semi-detached houses is the zero-lot concept.

Purchasing a zero-lot home is soon becoming a popular choice among house buyers as these units look similar to a bungalow.

Focal Aims Land Holdings Berhad group general manager Shawn Yee explained that the zero-lot concept meant one side of the house had its side wall close to the boundary while the adjoining house is set back from the same boundary.

“At a glance you do not even realise it is a semi-detached unit because each house looks exactly like a bungalow with a garden to accompany it,” he said when explaining the Johor-based company’s latest development, the Saujana O-lot in Shah Alam.

Built on a 10.48ha hilltop overlooking the Federal Highway, the 48 houses come in two designs — D-Villa and SD-Villa.

Yee said D-Villa has a minimum built-up area of 4,437sq ft while SD-Villa only has a minimum built up of 3,572 sq ft.

The difference between the two villas are not just in size but in exclusivity as only three D-Villas are available with a starting price of RM2.8mil.

The remaining 45 units are in the SD-Villa range, which offers a starting price of RM1.6mil.

Residents of Saujana O-lot need not worry about recreational spots or shopping centres given its location just off the Federal Highway.

“Just minutes away is the Glenmarie Golf Club, Saujana Golf Club and Subang Golf and Country Club,” he said.

Shopping centres and hypermarkets such as Carrefour, Subang Parade, Citta Mall and Empire Subang are also located nearby.

Those who enjoy walking or running around the neighbourhood can utilise its jogging paths and pedestrian footpaths built around lush garden hedges and beautifully-landscaped water features along the gated-and-guarded area.

On accessibility, residents can get home from their work place through the New Klang Expressway, Damansara-Puchong Highway and Federal Highway.

For details, visit the Focal Aims Land office at Peremba Square, Shah Alam or call 03-7622 9983.

By The Star

SP Setia still eyeing UK property mart

SP Setia Bhd is still planning to invest in the UK property market and will be forming a consortium with Malaysian investors after securing projects to help develop them, its chief said.

"We learned a lot of things from our failure (in bidding for a project) in London. Now we know how the system there works. We are not reckless ... we will look at basic valuation for future projects," its president and chief executive officer Tan Sri Liew Kee Sin said.



SP Setia was in talks with Irish Group Real Estate Opportunities (REO) to acquire a stake in the redevelopment of the Battersea Power Station in south London.

The deal fell through as REO creditors REO had rejected its preliminary offer.

SP Setia had on November 18 instructed its investment adviser to submit a conditional non-binding preliminary offer to buy from Lloyds Banking Group plc and the National Asset Management Agency, the senior debt facilities and the swap exposure and other related claims in the Battersea Power Station site and its holding company for around RM1.3 billion.

Liew said despite the aborted deal, SP Setia still believes that property development prospects in London are positive and it will continue looking for investment opportunities.

"Looking at the situation today, we must look out of Malaysia to invest. We must be world leaders like Petronas and Tan Sri Tony Fernandes but don't be reckless in what you plan to do," he said yesterday after SP Setia's extraordinary general meeting (EGM).

Liew said the firm's long-term plan is to seek opportunities to invest in the property market in Australia and Malaysia, besides London.

SP Setia's recent success in penetrating the competitive Australian property market with the launch of its Fulton Lane project in Melbourne's central business district has given the company the confidence to explore other strategic global cities.

"We have no plans for merger and acquisition. We will continue to grow the company by buying land, launching new products and selling them," he said.

SP Setia is targeting RM4 billion in sales for fiscal 2012, driven by local and foreign property sales.

At the EGM, Liew said shareholders agreed to SP Setia's plan to acquire the remaining 40 per cent stake in the RM6 billion KL Eco City project from Yayasan Gerakbakti Kebangsaan.

"Now that we control 100 per cent of KL Eco City, there will be better prospects for SP Setia from this project," he said.

By Business Times

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