Need for master planner of affordable housing

The current challenging economic times is a good time for reflection and we should not waste the opportunity to take stock of where we are heading as a people and a nation.

Going by the adage that life begins at 50, Malaysia is still a fairly young nation and adopting more inclusive policies that mobilise the country's rich human and natural resources will be able to cushion the country from any adverse external shocks.

Reading about Bhutan and how its much-beloved king places great value on the wellbeing and happiness of his people by inventing the Gross National Happiness index is very inspiring indeed.

The fact that the people's happiness is listed as the top priority speaks volume of how much they are appreciated as individuals. Other inspiring aspects that we can take a leaf from include the emphasis on preserving the natural environment and promoting simple and non-intrusive way of living. Despite a deliberate policy to limit the number of tourists allowed to visit Bhutan, an increasing number of tourists are finding their way to Bhutan for its natural beauty and simple way of life.

Their simple way of lifestyle means one can get by with less and there is less pressure to chase material wealth.

In its place is the emphasis on personal virtues and wholesome values of integrity, honesty, generosity and empathy for other people.

I believe the promoting of such values will set the foundation for wholesome community and nation building for our country.

The Bhutan story must have prompted many of us to start reflecting on our journey of life, and how we have fared in terms of the happiness index.

Come to think of it, since the world economy is on the verge of a double-dip scenario and there will be very low or no growth in most nations, some tweaking in national policies and priorities may be what Malaysia needs to see our country and the people through the challenging times.

It may be a good idea for us to draw up a Malaysian Happiness Index to measure how our people are faring against the rest of the world.

In the fast changing world we live in today, the elements that contribute to our happiness are constantly changing but there are some evergreen or “true blue” ones that will remain come what may.

The list may include whether the people have a roof over their head; the cost of living and how much does it take for a family to get by on a daily basis; freedom of expression and to pursue one's interest; and ability for the people to keep safe and thrive in their society.

Recent events around the world have shown that social disparity is still a huge problem in both the developed and developing countries, and can become a source of social discord and public unrest.

In the face of the high cost of living and inflated property prices, one of the immediate tasks of the Government is to pay more attention to social or public housing, and ensure that people have a roof over their heads.

Providing the less-endowed populace with some basic necessities such as a home of their own is tantamount to offering them hope for a better tomorrow.

Even China is counting on its massive effort to build low-priced social housing for the low-income group to provide enough demand to sustain its real-estate market from collapsing. It has set a target to build 36 million subsidised housing by 2015.

In Malaysia's case, the need for concerted efforts to build adequate public infrastructure and housing cannot be over-emphasised as the ongoing efforts are still quite fragmented.

Instead of involving so many agencies in the execution process, having a dedicated agency as the master planner to oversee the overall planning and execution of the projects will ensure a higher rate of success to benefit more people.

Providing enough public housing and other social amenities should be accorded one of the top priorities along with the other economic-based initiatives under the government's Economic Transformation Programme.

The sharp increase in prices of goods and services, including that of property, meant people have less disposable income and spending power.

These projects will be able to wipe out the many squatters and slumps, and rejuvenate our cities. Focusing on public housing can also provide a cushion for the property market from stagnating during troubling economic times.

Deputy news editor Angie Ng hopes improving the Malaysian Happiness Index will be the basis for all nation building policies and initiatives going forward.

By The Star (by Angie Ng)

DBKL will buy up defaulters’ units

KUALA Lumpur City Hall will set up a redemption reserve account to buy up public housing units of loan defaulters after the sixth month.

The loans are arranged through the special housing scheme financed by the Employees Provident Fund (EPF).

This scheme will be managed by Syarikat Perumahan Wilayah Persekutuan established under the Federal Territories Foundation.

Federal Territories and Urban Wellbeing Minister Datuk Raja Nong Chik Raja Zainal Abidin said 20% from the sale of all public housing units would be channelled into the account and not be used for other purposes.

“Profit rate charged by EPF is 5.5%. DBKL guarantees on buying back the units from the defaulters to sell it back to the 27,000 other eligible applicants in the waiting list.

“The value of each unit is double the cost so I hope the current tenants would take the opportunity to buy these units.

“I would also like to remind the buyers to be responsible and service their loans or risk having their units taken away,” he said.

Nong Chik said all the current tenants who had been paying rental on time were automatically eligible for this scheme.

“It is a good scheme for the lower-income group with no down payment required and 100% loan with a repayment period up to 25 years.

“I encourage every one to take it up because it might just be the only asset for many.

“The units bought can be rented to local residents or sold after seven years of settling the loan,” he said.

Starting from March, DBKL would be having roadshows to explain to potential buyers on the scheme. So far, there are 44,146 public housing units for sale of which 4,919 have been sold. Another 12,675 have agreed to accept the offer.

Each unit costs between RM21,500 and RM35,000.

Monthly instalments would be between RM200 and RM300 a month.

By The Star

Jeram Bintang puts Faber Tower up for sale

KUALA LUMPUR: Faber Tower, which was built by Faber Group Bhd in 1986, is up for sale for RM80 million to RM90 million, people familiar with the matter said.

Jeram Bintang Sdn Bhd, which owns 90 per cent of the commercial complex, has appointed CH Williams Talhar & Wong as the exclusive
marketing agent. The rest of the complex is held by individual owners.

Sources close to Jeram said the company is looking to cash out its share in the complex, which it acquired from Faber in 2004, to focus on other ventures.

Faber had entered into a conditional sale and purchase agreement with Jeram, a special purpose vehicle set up by a consortium of banks, to dispose of properties, including hotels and a mall owned by the group as part of its debtrestructuring exercise in May 2004.

The complex comprises two 18- to 20-storey office blocks, a podium and three-level carpark and Jeram is selling 610,000 sq ft of floor area.

Jeram is selling 22 strata office units or 81.4 per cent of Tower 1, and the whole of Tower 2.

Also for sale are 62 strata retail units or 73.6 per cent of the podium, and the carpark.

Property experts said Jeram is selling the properties below market price.

As at December 31 2002, the net book value of the complex sprawled over 2.63 acres was RM105.12 million.

“It is obvious that any investor would be looking at the land area as the buildings are aging and would require a lot of capex (capital expenditure) to be uplifted,” said a property expert who
declined to be named.

He said commercial land surrounding the complex is currently selling for between RM400 per sq ft and RM500 per sq ft.

It is understood WTW has been approached by investors from Malaysia and Singapore.

By Business Times

More than 90 projects worth billions to be farmed out by April

After some dithering, the construction of the My Rapid Transit (MRT) project is moving into higher gear. The two major contracts awarded by MRT Co last week that totalled some RMl.6bil is proof that things are moving.

What's to come is more telling. By April, MRT Co, the overseer and project owner of the country's largest ever infrastructure project, would have awarded a total of around 90 or so projects. The figure of these contracts run into billions and would clearly be a major boost to the construction and related sectors.

The multiplier effect on the economy will soon be felt.

“We have been waiting for this, as these projects have already been earmarked by the Government before. The industry and the country need these projects to spur economic growth, in light of the gloomy global scene. The multiplier effects are well spelt out,” says Master Builders Association Malaysia (MBAM) president Kwan Foh-Kwai.

While research houses have yet to make an outright bullish call on the construction and related sectors, there are hints that a re-rating is in the offing. Among the larger contracts that are being dished out are for elevated civil works that entail the building of viaduct guideways and other associated works. There are eight of these packages, each averaging RM500mil, according to MRT Co.

However, the two that have already been awarded recently to IJM Corp Bhd and Ahmad Zaki Resources Bhd were for RM974mil and RM764mil respectively, indicating that the RM500mil figure could be on the low side.

There are also contracts for stations and depots. And the single biggest one will be for tunnelling works for the 9.5km underground portion of the Sungai Buloh-Kajang MRT line.

The bill for this is estimated at 40% of the total project cost, which is estimated at RM30bil. The first line stretches 51km.

“The positive news from MRT Co reinforces our positive view on the construction sector as we expect a lot of sizeable projects to be awarded this year,” wrote MIDF Research in a recent note.

OSK Research said that if it did turn positive on the Malaysia market, construction would be one of the sectors it would be bullish about.

Its research head Chris Eng says: “If global markets hold up, the improved risk-taking sentiment will provide a boost to construction stocks, given that the MRT awards will happen this year.”

But are the contracts being farmed out too hurriedly? And what assurance is there that the right parties are winning the awards? These are valid concerns, considering that Malaysia has a questionable track record when it comes to the building of large infrastructure projects in terms of contractors' ability to deliver the goods in time and within budget. In the past, a massive amount of money had been spent by the Government in bailing out the two light rapid transit (LRT) operators and the monorail project.

Federation of Malaysian Consumers Associations secretary-general Muhammad Sha'ani Abdullah says:“Caution should be taken to ensure that the best and deserving companies are awarded the deals. We don't want situations where companies chosen later fail to carry out the projects within budget and time. And these companies then end up getting bailed out by the Government, as had happened in other infrastructure projects in this country.”

But MRT Co CEO Datuk Azhar Abdul Hamid explains that the plan to get these contracts awarded by April is to ensure that the MRT (since renamed Klang Valley MY Rapid Transit or KVMRT) isn't delayed.

“We are already about six months behind schedule and also want to make sure we can deliver the project ahead of the expected completion time in July 2017. There is nothing wrong to speed things up as we do not rely on one company to do the work and that's why we are spreading it out. The most important thing is coordination and supervision,” he says.

Rigorous selection process

Azhar explains that a rigorous process is involved in deciding which companies are awarded with the contracts. In fact, the selection process dates back to even before Azhar, the former head of Sime Darby's plantation division, was made chief executive of MRT Co last August.

Syarikat Prasarana Negara Bhd (Prasarana) which was first tasked with managing the KVMRT project, had earlier called for parties to express their interest in participating in the works for the KVMRT. That was back in 2010 and by September 2011, Prasarana had decided on the “pre-qualification” list for all the different packages involved in building the KVMRT.

According to Azhar, the bids which are then submitted by the pre-qualified contractors are first evaluated by a working committee chaired by both MRT Co and the Project Delivery Partner (PDP) to gauge applicants' technical and financial capabilities. One unique feature of the KVMRT project is the presence of the PDP. In late 2010, a Gamuda-MMC consortium, who had first pitched a plan of the MRT to the Government in the early part of that year, had been appointed as PDP consultants for the MRT project.

The PDP bear certain management risks in this project and are therefore key stakeholders in the KVMRT. Hence it has a say in the decision-making process of contract awards.

From there, the applications go on to a one-stop technical committee chaired by Azhar.

“Finally, we will present the outcome of these evaluations to the one-stop procurement committee to be chaired by three different persons depending on the contract value.”

The chairpersons include Finance Ministry secretary-general for contracts up to RM50mil; the Second Finance Minister (up to RM300mil) and the Prime Minister for contracts worth more than RM300mil.

Checks and balance

Additionally, the KVMRT project has two very notable checks and balances in place to minimise the Government having to provide additional funding in the event contractors can't deliver. First is the role of the PDP. Explains Azhar: “Under the PDP environment there's a step-in clause where if the contractors fail to undertake and continue doing the jobs, the PDP is obliged to come in and get the job done.”

Azhar adds that in cases where there are cost overruns, it is only to be expected that the PDP will also be penalised for that. “In the case of variation orders, we will only look at very exceptional cases,” Azhar says.

Aside from the PDP, there's also the role of the independent consulting engineer or ICE. It has been reported that Prasarana had already issued a letter of intent to engineering firm HSS Integrated Sdn Bhd in a JV with SNC Lavalin (of Canada) to take on the role of ICE. HSSI was previously involved in the design, construction and supervision of the KL International Airport, the Light Rail Transit System 2, the North-South Expressway, Maju Expressway and the Express Rail Link.

Azhar says the role of the ICE is crucial as it will monitor the progress of the project and its input is needed before contractors are paid. It is also tasked with safety aspects of the project.

Still on the issue of the PDP, recall that the appointment of Gamuda-MMC as the PDP for the KVMRT project had caused some controversy, considering that they are also bidding for the tunnelling portion, which is single biggest contract in building the MRT.

Azhar explains that it is Gamuda and MMC who has first come up with the MRT proposal to the Government and they have from the start indicated their keenness to be involved in the tunnelling portion of the project.

“To ensure proper due diligence and that the Government is getting the right pricing for the tunnelling portion, that's the basis of having the Swiss Challenge method for picking the tunnelling contractor,” Azhar says.

To date, five groups of companies, including the Gamuda-MMC JV, have been shortlisted for the tunnelling job. If Gamuda-MMC wins the tunnelling job, it would step out of the PDP role relating to that part of the project. Under the Swiss Challenge system, MMC-Gamuda will have the first right of refusal to do the job at the lowest bid plus a small 2.5% to 7.5% margin. Curiously, this has not stopped other parties from making a bid.

“Take note that the other bidders for the tunneling job are made up of two Chinese, one South Korean and one Japanese company. Aren't they also able to have advantages of economies of scale and possibly government funding on their part?” Azhar notes.

Crucial issue of funding

As the KVMRT goes into high speed, many are still questioning if the country can really afford a project as ambitious as this. It is estimated that the first line of the KVMRT would cost around RM30bil. But he says: “The Government will finance the entire line 1 (Sungai Buloh-Kajang) via bond issuances. That will be done very soon. In the mean time, if we need money, we can used short-term financing from financial institutions which can then be converted into bonds later on. We expect good response for the bonds as there is a lot of liquidity in the market as well as investors are looking at Asia now as the situation the West is not quite healthy.”

Azhar says that it will be Dana Infra that will be raising the bonds.

It has been reported that a special unit of the Finance Ministry called Dana Infra Nasional Bhd (Dana Infra) has been set up to issue bonds to raise the financing for the MRT building cost. Checks with Government sources reveal that Dana Infra is headed by Fazlur Rahman Ebrahim, who is the current managing director of Prokhas Sdn Bhd, itself a unit of MoF that was set up in 2006 to manage the residual assets of Danaharta.

Fazlur has yet to respond to queries from StarBizWeek on the planned bond issuance. Sources, however, have indicated that these bonds would be fully government-backed.

The Government has stated in the past that the rationale for the KVMRT being government-funded is on the basis of the multiplier effects it would have on economic growth in the country and the competitive advantage that the Klang Valley would have once the MRT was up and running

It had also been reported that while the MRT was not going to be profitable, there would be a strong focus to reduce its cost and this was where a “rail plus property” plan had been cited before, where some level of real estate development would be emarked on to recoup some of the losses from the MRT. Another non-fair revenues would be sought such as from advertising.

StarBizWeek had previously quoted economist Dr Yeah Kim Leng of RAM Holdings, who opined that assuming RM30bil is raised by the Government via bonds to the fund the MRT, it will raise the Government debt-to-GDP ratio by 3.9 percentage points to 57% based on the 2010 gross domestic product (GDP) figure.

He said when compared with the debt situation of many advanced economies where the debt levels are either close to or above 100% of GDP, the Government does have the borrowing capacity. He had also said that the bond issuance of RM30bil would raise the fiscal deficit by an estimated 0.2% of GDP which “may necessitate either a cut-back in spending on other areas or raising revenue through means such as asset sales or tax increases, in order to achieve the fiscal deficit target of less than 3% of GDP by 2015,” he reportedly said.

On a positive note, Yeah had added that the MRT project would “boost the economy by adding jobs and crowding-in investment which would have the desired effect of enlarging the GDP, thereby contributing to either stabilising or lowering the debt-to-GDP ratio”.

Those following the KVMRT saga would also be aware of the problems Azhar and his team faced when securing the allignment in some parts of the city centre. There were quarters who opposed the development of the KVMRT. Azhar is confident that the problems would eventually be ironed out. His message has been consistent: that MRT Co isn't interested in taking land in places like Chinatown, except for the station. “We just need the time for them to vacate the area with compensation for six months for us to do the tunnelling works underground.”

But Azhar goes on to say:”Some people just refuse to understand.”

The KVMRT though, is going ahead and Azhar is winning the battle with the majority of land owners having inked agreements to facilitate the MRT allignment. “A lot of efforts are being made on our part to do this correctly. We will get there,” he ethuses and is hopeful that the July 2017 target for the first line of the KVMRT would be achieved.

By The Star

MBAM bullish on construction sector

DESPITE the global economic uncertainty, the Master Builders Association Malaysia (MBAM) is bullish about the growth of the local construction industry in 2012.

The Malaysian construction industry is expected to grow to RM92bil this year from RM85bil last year,” says MBAM president Kwan Foh Kwai.

“However, with the uncertainty of the global economy and the expectation that the property sector may be less robust, MBAM is cautiously optimistic that the construction industry outlook for 2012 will be relatively stable, backed by the continued implementation of projects under the 10th Malaysia Plan (10MP) and the Entry Point Projects (EPP) under the Economic Transformation Programme (ETP),” he adds.

Kwan says the timely awards and implementation of projects under the 10MP and ETP will contribute positively to the growth in 2012, as the projects requires a gestation period to generate impact to the economy.

“A continued conducive environment for doing business in the country, clear guidelines and timelines for approval processes and a level playing field will definitely help spur growth and investment in Malaysia.

“This planned and progressive awarding of projects will reduce any abrupt increase in demand for building materials and manpower, which may jeopardise the targeted growth due to temporary shortages in supply. This will also prevent unnecessary price increases which will add burden to contractors,” he says.

Analysts, meanwhile, are pretty upbeat about the outlook for the construction sector, in light of the call for tenders of the Klang Valley My Rapid Transit (MRT) jobs by MRT Co.

Last month, it was reported that MRT Co is expected to call for tenders of MRT jobs that comprise 18 elevated civil, station and depot work packages under Phase 1 worth RM15bil. Phase 1 involves 20 km between Maluri and Kajang.

Meanwhile, tenders for Phase 2 of the MRT project will be called in the second half of 2012, which the market values at RM15bil.

“The positive news from MRT Co reinforces our view on the construction sector as we expect a lot of sizeable projects to be awarded this year, especially in the second half of 2012,” says MIDF Research in a report.

An analyst from a local bank-backed brokerage says the new MRT jobs will bode well for the construction industry this year.

“It will create some excitement for the industry and spur spin-off jobs, which will benefit the local construction sector,” he says.

Kwan notes that the Government has targeted a 7% growth for the construction industry this year.

“The kind of growth we hope as envisioned in the 10MP (which covers the period from 2011 to 2015) is to have an annual growth of at least 3.7% per year as compared with 6% per annum gross domestic product growth for the country.”

Kwan believes that the Government’s public-private partnership business model will play an integral role in the development of the local construction industry.

“There is also a need to bring in foreign direct investments (FDIs) which will definitely play an important part to promote construction growth in 2012.

“MBAM opines that boosting investors’ confidence and sentiment with measures aimed at enhancing economic efficiency through market liberalisation and lowering business costs will help add to the country’s FDI growth momentum in 2012,” he adds.

Kwan says the MBAM has urged the Government to speed up the award of new projects, especially those with that would have a high impact to the economy in 2012.

“For projects involving FDI and domestic investors, the timely issue of construction permits will further improve confidence of investors.

“Timely awards and implementation of projects as per the 10MP and ETP from now will contribute positively to construction growth in 2012, as the projects require a gestation period in order to generate impact to the economy.”

Other issues the MBAM feels could present challenges to the local construction industry, says Kwan, include the stability of building material prices, policy and law related matters, aside from high import duties for construction heavy machinery.

The MBAM has suggested the Government reduce the import duty and sales tax for heavy machinery on a systematic basis within two years, until it is reduced to 5% to 10% for import duty and 5% for sales tax, from the 20% and 10% currently. “With the use of new and bigger capacity machinery, productivity will increase and less foreign workers will be employed.”

Kwan says having sufficient and skilled workforce for the sector is also vital. The MBAM has appealed to the Government to lift the temporary suspension for workers’ quota application, saying that the construction industry is currently facing a shortage of manpower.

“The MBAM has written to the Government to allow construction workers above the age of 45 who have been trained as skilled workers to be legalised so as to remain working in Malaysia. This will save both labour cost and reduce the number of new unskilled foreign workers to be brought in.”

Kwan says there is currently a critical need to replenish the pool of skilled construction manpower.

“It is estimated that 35.1% of local construction personnel would reach the age of 50 and above, in seven years from now. Therefore, MBAM is taking steps by collaborating with Open University Malaysia to develop and design industrial based programmes for working adults. The courses developed will incorporate knowledge and entrepreneurship skills which would be industry oriented.”

Kwan says MBAM is also collaborating with the KLIA Professional and Management College and conduct the MBAM Site Safety and Health Supervisors (SSS) training course, which is accredited by the Department of Safety and Health and help address the shortage of SSS in the construction industry.

“The SSS courses are currently conducted in Kuala Lumpur and will be extended to other areas such as Penang, Sabah and Sarawak as per request from the construction industry.”

By The Star

Construction sector to gain more

The kickoff of the country's largest infrastructure project the Klang Valley My Rapid Transit (KVMRT) could spark re-ratings across several sectors starting with the construction sector which is the direct beneficiary.

A flurry of construction jobs which would swell up the order books of companies by leaps and bounds, is expected to be announced over the next six months as the multi-billion MRT development, which is six months behind schedule, strives to play catch up.

To kick-start, MRT Co has appointed IJM Corp Bhd (IJM) and Ahmad Zaki Resources Bhd (AZRB) for the construction of viaduct guideways and other associated works.

MRT Co is the project and asset owner of the MRT.

The two separate multi-million contracts at RM974mil and RM764mil for IJM and AZRB respectively are part of eight complete packages in the elevated civil works portion one of the largest portions of the MRT project.

There are a total of 90 work packages for the entire first MRT line, providing ample jobs for virtually everyone in the consruction industry and including those in building materials and property.

MRT Co chief executive officer Datuk Azhar Abdul Hamid says six more of the eight major packages are expected to be awarded within the next six months.

Of the eight, five will be from the open tender category while three contractors will come from the bumiputra category.

“It should be a fast process as we already have a pre-qualified list,” he says.

While the margins of contractors cannot be predicted, analysts have said that technically, margins for MRT works should be higher than the 5% earned by contractors who worked on the light rail transit or LRT system given the higher complexities and financial risks of the former.

Among those on the pre-qualified list for the elevated civil works portion, analysts have singled out a few companies which are likely beneficiaries based on several factors.

One of this is Naim Engineering Sdn Bhd, a wholly-owned unit of Sarawak's largest property developer and construction firm Naim Holdings Bhd.

Reports point out that Naim's construction and engineering arm has a track record of completing more than RM2.7bil worth of projects either on time or earlier and within budget.

This should augur well for the company since the ability to stick to a strict timeline and within stipulated costs is vital in a mega project like the MRT.

Naim has experience in projects involving road, bridges and buildings for both the Government and private sector.

It is also a pre-qualified candidate in all of the elevated works portion of the project including civil, stations and depot jobs as well as being represented both in the open and bumiputra tender categories.

Besides Naim, AmResearch construction analyst Mak Hoy Ken says for the remaining six elevated civil work packages, he likes IJM, Sunway Holdings Bhd and Malaysian Resources Corp Bhd as possible contenders, for their solid track records in delivering major construction and property projects.

HwangDBS Vickers Research chooses IJM, Sunway, Muhibbah Engineering (M) Bhd and TRC Synergy Bhd as possible recipients, all of which have been pre-qualified for all elevated works including civil, depots and stations.

Azhar says that he does not rule out the possibility of IJM and AZRB being awarded with contracts again despite being the chosen ones in the first round.

“There is a possibility, yes,” he tells StarBizWeek.

On the tunnelling portion - which is the single largest portion of the MRT project valued at about RM8bil, HwangDBS says it is optimistic that the MMC Corp Bhd-Gamuda Bhd joint venture would win the bid despite stiff competition including from foreign parties.

The result of this should be known by April.

“Conventional wisdom suggests it is best to keep this MRT project domestic with a stronger multiplier effect on the economy, especially with possibly slower gross domestic product growth in 2012,” the research house says.

Gamuda is jointly appointed with MMC as the project delivery partner for the entire MRT project.

Additionally, the joint-venture is the only pure local party with bumiputra interest, and therefore would be accorded a 7.5% tender pricing advantage; it also has an edge over its competitors in terms of having better understanding of Malaysia's soil conditions and experience in completing the SMART Tunnel.

As for the initial spillover to other parts of the economy, AmResearch's Mak says the imminent roll-out of MRT jobs is expected to first prod renewed focus on building material players.

“Our initial checks indicate that the Sungai Buloh-Kajang line alone may require 500,000 tonnes of steel, with the maiden orders likely to kick-in by the end of the first half of this year.

“This should benefit Ann Joo Resources Bhd and Lion Industries Corp Bhd, both in steel and Lafarge Malayan Cement,” he says.

The Sungai Buloh-Kajang line is the first line out of three under the entire MRT plan.

According to MRT Co, line two, the circle line (MRT 2) and line three (MRT 3) should be completed by 2020 and are expected to cover the regions of Kuala Lumpur and the north-west corridor of Greater Klang Valley which includes linking Sungai Buloh, Kepong and Selayang with the eastern half of the city centre (including Kampung Baru and the Kuala Lumpur International Financial District).

With such a strong pipeline of multi-million projects just waiting to flow into the order books of the local boys, there remains the huge cloud of political risk with the impending general election. Needless to say, disruptions in political conditions could derail or delay the take-off of any national infrastructure project.

Profit-wise, the earnings impact of the jobs on companies' balance sheets are not expected to be meaningful until at least in two years' time when the project should be in full swing.

Even then, JF Apex Securities Bhd deputy managing director Lim Teck Seng warns that profits gained by companies involved may not be within expectations.

“Swelling order books and actually making money from that are two separate things.

“Most of the jobs will be awarded to companies which offer the lowest price, so if related costs arising from inflationary pressure go up beyond their expectations, the companies may even end up making losses,” he says.

Vincent Khoo, head of research UOB Kay Hian (M) Holdings Sdn Bhd points out that in terms of stock prices, a lot of the good MRT news have already been priced in especially when it comes to the big boys of the sector.

“Hence, valuations may be a little lofty taking into account external uncertainties, upside could be limited but downside significant, if there are delays in dishing out of contracts,” he says.

MRT Co, is expected to make public the list of all the works for the Sungai Buloh-Kajang MRT line very soon with most of the big packages being awarded this year and the smaller ones in the early part of next year.

For now, OSK Research Sdn Bhd is maintaining a “neutral” call on the construction sector.

“We do not discount a potential re-rating on the sector in the near future, pending more concrete signals,” it says.

By The Star

Freehold project located next to Bukit Lanjan Forest Reserve

New phases: Low (right) and Ferdaus with the scaled models of Damansara Foresta.

With the scarcity of land in Selangor and especially in the greater Petaling Jaya, condominium dwellers don’t have the luxury of being surrounded by a green lung or natural environment. But now they will, with the ongoing freehold residential development of Damansara Foresta, being developed by Land & General Bhd in Bandar Sri Damansara.

Positioned as freehold “residential homes within nature”, this project is located next to the Bukit Lanjan Forest Reserve.

The overall project site consists of 17ha whereby only 8.5ha will be developed for residential development, leaving the remaining half as green lung especially for residents.

“The land area will be filled with no less than 3,000 trees to filter out city noises and airborne pollutants and supply natural fresh air,” said the company’s managing director Low Gay Teck.

The prime development will have good access to all parts of the Klang Valley via the Damansara-Puchong Highway (LDP), MRR2, New Klang Valley Expressway (NKVE) and Sprint Highway.

Phase 1 of the project consists of four blocks ranging from 227 to 327 units for each block. The unit size ranges from 1,400 to 1,600 sq ft to a luxurious penthouse of above 3,000 sq ft.

The selling price for Phase 1 ranges from RM500 to RM600 psf with a maintenance fee of 25 sen psf.

“We have sold 99% of Block 1 and 95% of Block 2. Our theme is to provide living in harmony with nature.

“We are now constructing Phase 1 which consists of four blocks of condos on a 6.9ha site. Registration is now open for the third block and the official launch will be held this month,” he added.

Within the vicinity, the residents of Damansara Foresta will also enjoy a natural park as well as other facilities including a jungle trek, hammock garden, tree house, camping site, lookout points and yoga zone.

There will be a three-tier security system comprising the main entrance guardhouse, a guard at the lobby area and access card security in the elevator as well as two parking bays for each unit.

“For Phase 1, residents can enjoy a big swimming pool, roof-top garden on each block, hanging bridges and pergolas.

“As a developer, we strive to provide functionality, accessibility and practicality. Therefore, every level of the condo will be accessible from the parking ramp for added convenience.”

The units come with a spacious living room.

“We spend a lot of time designing the units so residents can enjoy a luxurious space for living in an efficient manner. It gives them a sense of spaciousness,” said Low.

The company’s executive director Ferdaus Mahmood said the entire property was 180 metres above sea level.

“We’re selling lifestyle. Each unit comes with kitchen cabinets and air-conditioning points too,” said Ferdaus.

For all the four phases, a total of 2,700 units will be built. Phase 1 has 928 units.

By The Star

Hua Yang to focus on Malaysian market for now

KUALA LUMPUR: Property developer Hua Yang Bhd, will explore the overseas market when the company achieves its targeted RM800 million revenue in the next few years, says chief executive officer Ho Wen Yan.

"We hope to grow our revenue to RM800 million by 2018. By then, we will be at a comfortable size and can start looking for opportunities overseas or other high-end segments," he said.

For the nine-month period ended December 31 2011, Hua Yang's revenue was RM222.13 million.

Ho said the company could bring its affordable housing model and technical expertise to emerging markets like Vietnam, Cambodia and Indonesia.

"Currently, venturing overseas is not in our plan, not within the next three years. The Malaysian market is still very strong, especially for our segment, the affordable housing.

"After three years, we will take a look. I hope these countries are ready for foreign investors then. We are now exploring opportunities," he said.

On the domestic front, Hua Yang plans to launch its next township "Pulai Hijauan" in Johor in April or May.

"Everything is ready now for the official launch of the township," Ho said.

Pulai Hijauan, with an estimated gross development value (GDV) of RM380 million, is about a kilometre from the company's existing township, Taman Pulai Indah, in Skudai.

Ho said the total GDV for the company's ongoing projects and yet-to-be-developed ones was RM2.4 billion. Of this, the GDV for ongoing projects is about RM983 million.

By Bernama

Sime Darby Property honoured for sustainable development efforts

KUALA LUMPUR: Sime Darby Property Bhd has won two awards for outstanding achievements in the property development sector in Malaysia and Southeast Asia.

It bagged the BCI Asia Awards 2011, the second consecutive year that it has won the honour. The award covers Malaysia, Hong Kong, Indonesia, the Philippines, Singapore, Thailand and Vietnam.

Sime Darby Property managing director Datuk Wahab Maskan said it was an honour to be one of the top 10 developers in Asia and to be acknowledged for its sustainable efforts in Malaysia.

"These awards reflect the appreciation of society and customers for our efforts to provide sustainable development for our stakeholders. We will continue to work even harder to be the preferred developer in the region," he said.

Sime Darby Property was also recently conferred the Prime Minister's Hibiscus Award 2012 for Notable Achievement in the Environmental Excellence Category.

It won the award for its Bukit Jelutong township, following a two-stage assessment process that included a site visit and detailed submissions on 14 areas covering a range of environmental issues.

By Business Times

Legoland Malaysia names sales director

Legoland Malaysia, the first Legoland theme park to open in the Asia-Pacific and the sixth in the world, has appointed Thila Munusamy as the Director of Sales and Marketing to strengthen its senior management team.

In a statement today, it said that Thila will oversee the theme park's overall marketing, public relations, social media, sales and regional promotion activities.

Joining Sunway Lagoon as a marketing manager in 2005, she contributed to the successful turnaround of the company. She was also responsible for many successful marketing initiatives that propelled Sunway lagoon into an award-winning theme park.

"Given her wealth of experience in the hospitality and tourism sector, we are confident that Thila will play a key role in making LEGOLAND Malaysia a household name and a preferred destination for our target visitors," said its general manager, Siegfried Boerst.

By Bernama

UMLand to start mixed project in downtown Johor Baru

PASIR GUDANG: United Malayan Land Bhd (UMLand) plans to start its multi-million ringgit mixed development project in Jalan Wong Ah Fook in downtown Johor Baru this year.

Group chief Pee Tong Lim said the project was now in the planning stage which included the gross development value (GDV), land utilisation and other related development details.

“We are looking at building a hotel block, a serviced apartment tower and a retail podium on the site,'' he said at the opening of the company's sales gallery and corporate office Galleria Seri Alam here by UMLand chairman Tun Musa Hitam.

Also present at the events were the company's executive director Datuk Ng Eng Tee, UMLand's subsidiary Seri Alam Properties Sdn Bhd general manager Frankie Tan Kiat How and Iskandar Regional Development Authority chief executive officer Ismail Ibrahim.

Pee said he hoped the project would start concurrently with the RM1.8bil Johor Baru City Centre transformation plan which is expected to start either in the second or the third-quarter of the year.

The land is situated opposite Kompleks Tun Abdul Razak and just a short distance from JB City Square shopping mall.

Under the transformation plan, Sungai Segget which has been covered and turned into a pedestrian walkway would be opened up and beautified similar to the famous Cheonggyecheon river in downtown Seoul.

Separately, Pee said the company's joint venture project with UEM Land Bhd, the master developer of Nusajaya at Puteri Harbour, would start early next month.

By The Star

Hua Yang plans overseas expansion

Property developer, Hua Yang Bhd, will explore the overseas market when the company achieves its targeted RM800 million revenue in the next few years, says chief executive officer Ho Wen Yan.

“We hope to grow our revenue to RM800 million by 2018. By then, we will be at a comfortable size and can start looking for opportunities overseas or other high-end segments,” he told Bernama in an interview.

For the nine-month period ended Dec 31, 2011, Hua Yang’s revenue was RM222.13 million.

Ho said the company could bring its affordable housing model and technical expertise to emerging markets like Vietnam, Cambodia and Indonesia.

"Currently, venturing overseas is not in our plan, not within the next three years. The Malaysian market is still very strong, especially for our segment, the affordable housing.

"After three years, we will take a look. At that time, I hope these countries are ready for foreign investors. We are now exploring opportunities,” he said.

Ho said there are ample opportunities in Indonesia and Vietnam and developed countries like Singapore and Australia.

However, his company would have to offer different products for Singapore and Australia, being developed nations.
On the domestic front, Hua Yang plans to launch its next township "Pulai Hijauan" in Johor in April or May.

"Everything is ready now for the official launch of the township," he said.

Pulai Hijauan, with an estimated gross development value (GDV) of RM380 million, is about one kilometre away from the company’s existing township, Taman Pulai Indah, in Skudai.

Ho said the total GDV for the company’s ongoing projects and yet-to-be-developed ones was RM2.4 billion. Of that, the GDV for ongoing projects stands at about RM983 million.

“The rest are undeveloped and some are in the planning stage. These properties will be developed in the next few years. More phases will be developed in our townships, Taman Pulai Indah and Bandar Universiti Seri Iskandar in Perak,” he said.

Ho said the company aims to launch RM800 million worth of properties in Johor, Perak and the Klang Valley next year.

By Bernama

JCorp in RM40m hotel upgrade

JOHOR Corp, Johor state's investment company, will spend up to RM40 million to upgrade all its hotel assets in line with increasing tourist arrivals in the state, spurred by the opening of several attractions in Iskandar Malaysia, including the Johor Premium Outlets.

Government investment arm Khazanah Nasional Bhd is developing an indoor theme park in Puteri Harbour for RM350 million, which is slated to open by end-2012.

In Nusajaya, Legoland Malaysia, which is being built at a cost of around RM750 million, is set to open in early 2013.

JCorp Hotels & Resorts Sdn Bhd deputy chief executive officer Muhamad Mazlan Ali said the upgrading work will commence in early 2012 starting with The Puteri Pacific Johor Baru.

"The hotel, which opened in 1990, is quite tired now and needs some uplifting. Our competitors have refurbished their properties. To stay afloat, we have to upgrade our properties.

"We will review upwards our pricing strategy once the refurbishment exercise is completed in about a year or two," Muhamad Mazlan told Business Times.

Currently, the average room rate in the Johor market is about RM180.

JCorp Hotels, the hospitality arm of Johor Corp, owns and manages five properties in Johor. Apart from The Puteri Pacific Johor Baru and the Persada Johor International Convention Centre, it owns Sibu Island Resort, Selesa Johor Baru and Selesa Pasir Gudang.

The company also has a property in Negri Sembilan, called Selesa Port Dickson. The six properties are worth as much as RM600 million.

Muhamad Mazlan acknowledged that Johor needed more hotels.

There are over 4,000 rooms available in the two- to five-star categories currently and this is expected to double by 2014, but still may not be sufficient to meet demand, he said.

"We expect room demand to increase with the expected influx of tourists and attractions. We are optimistic that the attractions in Johor will bring more people to the state.

"With more universities and colleges opening at EduCity, we can expect a large number of international students too," he said.

EduCity is a fully integrated knowledge-based hub comprising world-class universities, industry-centric R&D clusters, international schools and colleges, as well as conference and exhibition amenities.

By Business Times

Enhancing Langkawi's appeal

The proposed rejuvenation of Langkawi, via a five-year tourism blueprint, is set to see the potential entry of fresh investments that will make the resort island more appealing to higher-end tourists.

The Langkawi Tourism Blueprint envisages RM5 billion worth of investment in tourism projects and aims to increase tourism arrivals from the current 2.4 million to three million by 2015. That would more than double its contribution to the country's economy from RM800 million to RM1.9 billion, as well as create 4,200 new jobs.

The government's financial commitment to the blueprint includes RM420 million to build infrastructure, acquire some land and promote the island so that tourists no longer give it a miss in favour of destinations like Bali, Phuket and the Maldives.

"The blueprint serves as an impetus and provides a focused approach on specific areas of development such as product development, key infrastructure and supporting enablers.

"This in turn provides existing and new investors a clear vision and direction set forth for Langkawi," says Northern Corridor Implementation Authority (NCIA) chief executive Datuk Redza Razif.

The role played by the NCIA in helping uplift Langkawi's position is to play a lead role in the development of the blueprint, along with the delivery of its current initiatives on the island.

The authority is tasked to lead three out of 14 initiatives which have been outlined in the blueprint. They include plans for luxury stays and a vibrant north-west for the island, ensuring better connectivity and seeing to the setting up of a tourism academy by working closely with the Ministry of Higher Education and the Performance and Delivery Unit (Pemandu) in the Prime Minister's Department.

Khazanah Nasional Bhd had announced in December that it will be ploughing capital investments of some RM1 billion in Teluk Datai via Teluk Datai Resorts Sdn Bhd, its investee company.

This move is expected to be achieved via the implementation of a Teluk Datai master development plan which in turn will see reinvestments in the existing hotels at Teluk Datai, along with investments in select pieces of earmarked land which total around 604ha.

Projects include the enhancement of The Datai Langkawi, upgrading The Golf Club, Datai Bay, and optimising land for beachfront development.

Khazanah, via Teluk Datai Resorts, has also entered into a heads of agreement with Shangri-La Hotels (M) Bhd to jointly develop a five-star resort.

The proposed resort has been reported to be managed by Shangri-la International Hotel Management Ltd under the Shangri-La brand and will serve as Shangri-La debut on Langkawi.

Tradewinds Corp Bhd is said to be bringing more rejuvenation to Langkawi, via development of the Telaga Harbour Park at Pantai Kok and building new residential and commercial properties.

The company, which reportedly now owns the three-star Mutiara Burau Bay Resort, is believed to have plans to tear down the existing resort and rebuild it into a higher end accommodation offering.

The existing resort, which is currently in need of a major facelift, is dotted with sea-fronting chalets and appears to be "tired" and does nothing currently in terms of infrastructure and amenities for its guests.

Just up the road is the Oriental Village, which was opened by the Langkawi Development Authority (LADA) in 2003 and is poorly managed.

Originally envisioned to be a cluster of factory outlets stories, it is today nothing but a mix of crafts shops and buskers and serves as the occasional backdrop for television and movie producers.

Its close proximity to the island's top attraction - Panorama Langkawi cable car services - does not help the image of the cable car operator which offers rides to the peak of the 700 metro Matchingchang mountain range.

Although Panorama Langkawi Sdn Bhd, a profit making subsidiary of Syarikat Prasarana Negara Sdn Bhd, has over the past year done wonders to improve its image for its services, visitors are not accorded a positive first impression, owing to the conditions of the Oriental Village, which is in drastic need of a revamp.

While details of a supposed revamp of LADA are not publicly known, Langkawi locals and tourism players are now placing their hopes on the authority's newly-appointed chief executive officer Tan Sri Khalid Ramli, who previously served as chairman of the Malaysian Communications and Multimedia Commission.

A delivery management office (DMO), for which LADA will serve as lead agency, is set to be established in overseeing the blueprint.

"With a targeted approach taken by the blueprint, timely implementation, sound business plans and on-ground support by all sectors, we are confident that Langkawi will emerge as a premier island destination," noted Redza.

He added that the Langkawi Tourism Blueprint defines specific initiatives and complements the Northern Corridor Economic Region's overall blueprint which is to see the economic fortunes of the four northern states of Perak, Penang, Kedah and Perlis improve.

On the proposed development of Teluk Datai, Redza said that the opportunity for NCIA in this effort will be to assist in scaling up local entrepreneurs to provide complementing services in the vicinity of the new resort.

"This would include the development of souvenirs, availability of well-trained private tour guides and the provision of authentic dining experiences which reflect among others, local culture," he added.

On whether it was too ambitious a plan to expect the blueprint to yield its targeted results at the end of 2015 when the document was only launched at the end of 2011, Redza said: "During the development of the blueprint, some groundwork and key issues were identified and as a result, quick-win initiatives were targeted and already rolled in late 2011 and part of this year".

By Business Times

Sentoria plans 2nd theme park

More visibility: Sentoria joint MD Datuk Jimmy Chan (left) and Gan at the launch of the company’s prospectus. Gan says a listing on the stock market would make it easier for the company to attract potential investors and business partners.

KUALA LUMPUR: Property developer, and leisure and hospitality company Sentoria Group Bhd, which aims to raise RM51.6mil from its initial public offering (IPO), intends to invest the bulk of the proceeds on a second theme park in its Bukit Gambang Resort City (BGRC) in Kuantan, Pahang.

Sentoria joint managing director Datuk Gan Kim Leong said that the company had allocated a capital expenditure (capex) of RM48mil for a Safari Park, which would boost the number of visitors to BGRC.

“The park will open in stages from the end of this year,” he said at the launch of the company's prospectus yesterday.

Sentoria public and investor relations head Nasiruddin Nasrun said he was optimistic the Safari Park, spanning 35.7ha in Gambang's secondary jungle, would follow the success of the company's first theme park, known as Bukit Gambang Water Park, which had already attracted more than one million visitors since BGRC's opening in July 2009. Sentoria is the developer and operator of BGRC.

According to Gan, the hospitality business contributed about 30% to Sentoria's total earnings, with the balance 70% coming from its property development division.

Nasiruddin said the company expected to grow the contribution from the hospitality business to 50% by the time BGRC was completely developed in 2018.

“But we do expect to reach 50% much earlier, perhaps in the next couple of years,” he said.

Gan said a listing on the stock market would enable the company to create more visibility and make it easier to attract potential investors and business partners.

He also said it was timely to float the company despite the current global economic uncertainties. “We cannot foresee if the global economy will be good or bad, so any time is the best time,” Gan said.

Nasiruddin added that Sentoria was no stranger to an “economic downturn”.

“We embarked on BGRC during the global financial crisis in 2007 and 2008. So, we are no stranger to economic downturns,” he said.

Apart from the capex, the balance IPO proceeds will be used to repay bank borrowings and defray listing expenses.

En route to a listing on the Main Market of Bursa Malaysia by the first quarter of this year, Sentoria's IPO entails a public issue of 60 million new shares and an offer for sale of 40 million promoters' shares.

Of the 60 million public shares, 20 million are allocated for public balloting and 10 million for eligible directors, employees and business associates of the group at a price of 85 sen each. About 30 million shares will be allocated for private placement at 87 sen apiece.

The 40 million promoters' shares allocated for bumiputra investors are priced at 87 sen each.

AmInvesment Bank Bhd is the principal adviser, managing underwriter and joint placement agent for the IPO, while Kenanga Investment Bank Bhd is the joint placement agent.

By The Star

Sentora to invest RM48mil to develop safari park

KUALA LUMPUR: Sentoria Group Bhd, en route for listing on Bursa Malaysia Securities Bhd in the first quarter of this year, plans to invest RM48 million from internally-generated funds to develop a safari park.

Joint managing director, Datuk Gan Kim Leong, said the 35.28-hectare Bukit Gambang Safari Park in Bukit Gambang Resort City (BGRC) would commence operations by year-end.

"We are optimistic the safari park will follow the success of our first theme park," he said at the launch of the group's initial public offering (IPO) prospectus here today.

Gan said the company's first park, Bukit Gambang Water Park, has received over a million visitors since BGRC's opening in July 2009. "The addition of the second theme park would stake our place as an up-and-coming leisure and hospitality destination for visitors in Malaysia and the region," he said.

Sentoria is the developer and operator of BGRC in Kuantan, Pahang one of the largest integrated resort cities in Malaysia with 218.8ha.

The group has also carved out a niche in developing affordable housing primarily in Kuantan, Pahang.

Among its ongoing projects are Arabian Bay Resort, safari park and Taman Indera Sempurna 2.

Gan said the IPO would raise RM51.6 million in proceeds, of which RM27.7 million would be used for working capital.

He said RM11.2 million would be used to repay bank borrowings, RM9 million for purchase of property, plant and equipment and RM3.7 million to defray listing expenses.

The IPO entails a public issue of 60 million new ordinary shares and an offer for sale of 40 million promoters' shares at 87 sen apiece.

By Bernama

Cooling measures may turn investors away from S'pore residential property into stocks

SINGAPORE: Singapore's property cooling measures could deter investors from residential property and into stocks, according to investment experts.

The latest measures imposed an additional 10% stamp duty on foreigners buying private homes, a move that could affect demand and investment strategies, said DBS Group Research.

“Owner-occupier buyers are likely to hold back in anticipation of a dip in prices,” said the research house, which expected home prices to retrace by 5% this year - a muted impact due to the low interest rate environment.

Potential buyers already appear to be adopting a wait-and-see attitude, suggesting they may place their cash into stocks instead.

Lorraine Tan, director of Asia equity research at Standard and Poor's, told The Straits Times: “The property curbs limit the speculative element in investing in properties. When you don't have that and there is expectation that prices could come down, it's going to affect buying. As equities are more liquid, the money will get channelled into equities.”

Colin Tan, head of research and consultancy at Chesterton Suntec International, agrees: “Most people who have held back buying properties could invest in the stock market. There are lots of funds swirling around from one asset class into another.”

Not all concur. Teoh Kok Lin, managing director of Singular Asset Management, which manages funds in Kuala Lumpur and Singapore, said the stamp duty affected foreign buyers most but “these purchasers are likely, if they choose, to channel their cash to property markets in other countries.”

Just what effect the cooling measures might have on the share market was also a hot topic among most investors at a recent roadshow by CIMB Singapore, held in Asia and the United States.

“That was the question investors asked. My view is that there are other factors that drive stock market liquidity,” said CIMB Singapore research head Kenneth Ng.

He pointed out that retail participation in the stock market tapered off in 2010 and last year.

That coincided with the opening years of the two casinos and very strong transaction volumes in the property sector.

A resolution to the financial turmoil in the eurozone this year could spur more interest in shares, he noted. “That might be a good reason for market interest to come back and stock market volumes to rise.”

Tan of Standard and Poor's said confidence needed to improve significantly before shares would go up.

That appears to have happened already somewhat. The benchmark Straits Times Index has gained 10.2% this year to 2,916.26 points.

“The risk appetite has definitely come back a bit. But the eurozone debt issue is still a dampener.

“And global growth as well as Asia's is slowing. Those are two big issues that will continue to drive interest in equities,” said Tan.

Many potential property investors may be moving into shares while they wait and see how the cooling measures play out on prices.

There has been much talk since the Dec 8 stamp duty came into effect that prices would fall, but Tan of Chesterton Suntec is not convinced.

“There's too much liquidity in the market and borrowing costs are low. I don't think property prices are coming down soon, not even in a slow growth environment,” he said.

The Watertown project in Punggol has achieved strong sales since its preview on Jan 18.

OSK-DMG Research attributes the robust showing to the penchant among Singapore property buyers for mixed developments. But the research house expects primary transaction volume to fall by 20% year-on-year this year.

By The Straits Times

Govt offers housing and community centre for needy families

PEKAN: Prime Minister Datuk Seri Najib Razak officially launched two integrated housing and community centres for the poor in Kampung Padang Rumbia and Kampung Pulau Serai recently that will benefit 162 families.

The housing project, part of a nationwide effort to eradicate poverty, involved the full support of the private sector.

Under this project, families were given furnished homes and provided with income-generating ventures such as agriculture and aquaculture activities and livestock rearing.

The housing area was also completed with facilities such as food processing centres, ICT lab and handicraft production centres.

Najib said no Government allocation had been given for the project and it was funded by the private sector.

“It simply reflects the close cooperation between the Federal and state governments with the private sector,” he added.

Najib also said since becoming the Prime Minister nearly three years ago, he had always been open to all manner of new ideas resulting in the implementation of various Government policies.

A benchmark for any Govern-ment’s authority was in the contestation of ideas, he added.

“The free housing project for needy people is an example born from these exchange of ideas,” he said.

On the housing and community centres, Najib said each house, measuring 92.9 sq m, was fully furnished with a free gas cylinder for cooking.

Fifty families received their house keys from Najib during the function.

Later, at the Kampung Pulau Serai integrated housing project, the Pekan MP officially opened the Kedai Rakyat 1Malaysia which he described as the largest mall concept in Malaysia.

Among the facilities available were a landscape industry centre, fiber boat production centre, handicraft centre and an ICT resource centre.

Najib also gave away house keys to 112 families.

The first integrated housing and community centre project was launched in July, 2010, involving 60 families in Bukit Kenau, Pulau Manis here.

By The Star

Tebrau Teguh picked to develop Johor land

161HA MIXED DEVELOPMENT: Project to be within oil and gas industry hub in Kota Tinggi

PROPERTY developer Tebrau Teguh Bhd, which will see the involvement of construction tycoon Datuk Lim Kang Hoo of Ekovest Bhd in the company, has been chosen by the Johor government to develop 161 hectares of land in the southern state.

The land, located in Pengerang, Kota Tinggi, within the oil and gas industry hub, is to be a comprehensive mixed development that complements Petroliam Nasional Bhd’s US$20 billion (RM60.8 billion) refinery and petrochemicals integrated development.

Tebrau Teguh obtained its letter of appointment from the state government on January 30, it told the stock exchange late yesterday.

The land is owned by the state.

Meanwhile, Lim and Tebrau Teguh’s biggest shareholder, Kumpulan Prasarana Rakyat Johor (KPRJ), are launching a takeover of the property developer.

Tebrau Teguh said, in a separate stock exchange filing yesterday, that KPRJ plans to sell a 33.15 per cent stake in Tebrau Teguh to Iskandar Waterfront Holdings Sdn Bhd (IWH) for 76 sen a share, or RM168.7 million in total.

The move will result in IWH having to make a mandatory general offer for the rest of Tebrau Teguh’s shares at the same price.

KPRJ, which is the Johor state’s investment arm, currently owns a direct 41.15 per cent stakein Tebrau Teguh.

According to Tebrau Teguh, IWH is owned by KPRJ and Credence Resources Sdn Bhd. It did not state their exact shareholding in IWH, saying only that IWH’s directors are Lim, Lim Hoe, Lim Keng Cheng, Lim Chen Herng, Datuk Shahir Nasir, Datuk Ayub Mion and Johar Salim Yahaya.

Interestingly, Lim also owns 70 per cent of Danga Bay Sdn Bhd (DBSB) – the master developer of the Danga Bay waterfront project in Johor – via Credence Resources. KPRJ owns the other 30 per cent of DBSB.

Recent news reports have speculated that DBSB may be injected into Tebrau Teguh as Lim seeks to consolidate his investments. Tebrau, however, when queried by the stock exchange, said yesterday it was “not in any form of discussion with any parties” to buy DBSB.

Lim, a prominent businessman in Johor, is also the co-founder and chairman of Ekovest.

IWH’s offer price of 76 sen a share for Tebrau Teguh is just one sen higher than its last trading price. The stock, which was suspended on Monday this week pending the announcements that were made yesterday, will resume trade tomorrow.

IWH and KPRJ are to enter into definitive agreements on the Tebrau Teguh purchase on April 29, at the latest.

The mandatory offer will be conditional upon IWH and parties acting in concert with it holding more than 50 per cent of the voting shares in Tebrau Teguh.

By Business Times

Hua Yang plans affordable housing projects

Hua Yang Bhd plans to launch affordable housing projects with a total gross development value (GDV) of about RM500 million in the Klang Valley in its 2014 financial year.

Chief executive officer Ho Wen Yan said: "We are in the midst of securing land bank for these mixed development projects. The first launch will be in the next financial year."

He told Bernama today that the affordable housing projects would be in Selayang, Seri Kembangan and Desa Pandan.

"The company is constantly looking to replenish its landbank with specific areas in the Klang Valley being considered are Selayang, Seri Kembangan and Desa Pandan," he said.

Ho said the projects would take between three and five years to complete.

He also said that the company planned a gated development with a GDV of RM70 million in Perak in its financial year ending March 31, 2013.

According to Ho, the company was currently in the process of purchasing a piece of land, which was strategically located in Perak for the gated development. The project will comprise affordable terrace houses measuring 22x70 feet with price tags below RM400,000.

Ho said the company would continue to focus on affordable houses, a segment which Hua Yang had been getting tremendous response since it started its property business in 1978.

"We've been selling between 30 per cent and 50 per cent of our properties during our launches,” he said.

Hua Yang is in the midst of developing five projects with a total GDV of about RM983 million of which 85 per cent of the properties worth RM835 million have been sold.

Two of the five projects, namely Symphony Heights and One South with GDV of RM205.7 million and RM515.3 million respectively, are in Selangor.

Another project, Senawang Link which carries a GDV of RM17.8 million, is located in Negeri Sembilan. Its other two ongoing projects, Bandar Universiti Seri Iskandar with a GDV of RM56.3 million is in Perak while Taman Pulai Indah which has a GDV of RM187.8 million is in Johor.

By Bernama