KUALA LUMPUR: IGB Corp Bhd expects its strategically-located G Residence condominiums to sell out by the end of the year .
Jointly developed with SHL Consolidated Bhd on a 70:30 basis, G Residence is scheduled to be completed by February 2015.
It is located along Jalan Desa Pandan here on a 1.46ha site and overlooks the Royal Selangor Golf Club. The two-tower 23-storey residential development incorporates a multi-purpose hall, a gym, 30m lap pool and a common garden.
IGB head of property development, Teh Boon Ghee, said G Residence looks over on Lingkungan U-Thant, backs the Polo Club and neighbours the Royal Selangor Golf Club.
"G Residence is surrounded by a mature township of shop offices and cosy apartments. It is very affordable considering its location. Great Eastern Mall is just a leisurely 10-minute walk away," he said.
So far, 80 per cent of G Residence have been sold out. Priced at an average of RM650 per sq ft, the condominiums are sold between at RM610,000 and RM1 million per unit.
"All the units in Block A are sold out. Only 40 per cent units in Block B are still available," Teh told a press briefing here yesterday.
"Those who wish to buy G Residence units for investment can expect a rental yield of about 5.5 per cent. A 1,500-sq-ft unit can be rented out for RM4,000," he added.
Since the start of 2012, Bank Negara Malaysia mandates banks to explain to borrowers the implications of the loans they take, illustrating to them just how much more they will have to pay should the base lending rate go up.
This is applicable to housing and car loans, credit and charge cards, personal financing including overdraft facility and financing for the purchase of shares in the stock market.
Asked if the BNM ruling has affected property sales, Teh replied, "not really. Out of all the sales at G Residence, only a few buyers were seen to take a little longer to secure their home loans."
He then said it is worthwhile to note that starting July 2012, borrowers will not be penalised heavily for early settlement of their housing loans.
Instead, banks will only be allowed to charge for the cost incurred in processing the loan and not for profit loss from the early repayment.
By Business Times
Thursday, February 23, 2012
Building on foreign interest in properties
China has tightened loans,restricted purchases of multiple properties and imposed higher down payments while Singapore has introduced tougher measures aimed at foreign buyers, who have become increasingly visible in the residential sector.
“This is a good time for Malaysia to attract foreign buyers. But there are three key areas that we have to improve on, which are security, education and healthcare,” said Bandar Utama Development Sdn Bhd managing director, Datuk Teo Chian Kok.
Khong & Jaafar managing director Elvin Fernandez said there was a future for properties in Malaysia as more foreigners were expected to invest here.
He said once projects under the Economic Transformation Programme kicked in, there would be more demand for residential properties.
“The focus now is to make the city more robust and there will be automatic response,” he said at a media roundtable at Balai Berita, here, yesterday.
Real Estate And Housing Developers’ Association (Rehda) immediate past president Datuk Ng Seing Liong said the first
national-level Malaysian Property Exposition (Mapex) for 2012 would be a good platform to introduce Malaysian properties to overseas buyers.
Mapex 2012, to be held from March 2 to 4 at the Mid Valley
Exhibition Centre here, will have 85 developers showcasing more
than 300 housing developments across Malaysia.
The exposition, themed “Home and Abroad”, will also have foreign developers showcasing their projects here for the first time.
They include Century Properties Inc from the Philippines and Knight Knox International from Britain.
Ng said Mapex 2012 was expected to generate property sales of up to RM100 million.
By Business Times
Mudra Tropika's RM30m project
Called 28@Gertak Merah, the new lifestyle residential area is located in the old quarter of the southern city in Jalan Mustapha near the Istana Besar's Royal Gardens and the Abu Bakar Mosque.
With only 28 limited edition units of semi-detached homes on international leasehold lots, the houses start from RM1,177 million to RM2.534 million.
The units cover a total of 1.861ha, which is surrounded by greenery and away from the hustle and bustle of the city's commercial areas.
It is learnt that the project is designed with a modern colonial-cum-tropical concept. Every unit will be equipped as a modern smart home with an alarm system, complete with panic buttons and an automatic gate. The residential area will be a 24-hour guarded commune.
Mudra Tropika chief executive officer Mohd Nazim Sabtu said the 28@Gertak Merah project's main advantage is its strategic location on prime land, about three kilometres from the Johor Baru city centre.
"The main concept and objective is to deliver exclusive living with unobstructed hill view, low density, privacy and landscaped environment. In a nutshell, its an exclusive residential area in the heart of Johor Baru," he told Business Times when met yesterday.
Nazim said they had planned the concept of having a low-density boutique residences about two years ago.
The 28@Gertak Merah project is the latest addition to Johor Baru's growing, but exclusive market for high-end lifestyle residential properties which is priced more than RM1 million.
Once completed, it will be a main part of the Flagship A zone under the Iskandar Malaysia economic development corridor.
Nazim, who is also a director of Mudra Tropika, revealed that the company has always put pride in being different when it comes to property development, and the 28@Gertak Merah project is testament of this.
Despite talk that this year will see a slowdown in property sales, he said Mudra Tropika is confident that it can achieve 50 per cent of sales for 28@Gertak Merah by this year.
The figure equates to RM20 million in the project's gross development value.
"The groundwork has started and the project is scheduled to be completed by early 2014," said Nazim.
Mudra Tropika was established in 2006 and was initially put in charge to privatise and develop several parcels of state government land.
The company has seen the development of several Malay Reserve land in the Nong Chik area starting with Nongchik Heights, D'Permata homes, a block of three-storey commercial shoplots, the Nongchik Riverside commercial project and of late the 28@Gertak Merah project.
By Business Times
SP Setia confident of hitting sales target
SP Setia Bhd is still confident of achieving its sales target of RM4 billion in its financial year ending Oct 31, 2012 despite Bank Negara Malaysia's new guidelines for loan borrowers.
President and chief executive officer Tan Sri Liew Kee Sin who welcomed the ruling, said the move would ensure only genuine buyers who had no financial problems own a property.
"The whole idea of the central bank is to dampen property bubble or credit bubble which is going on.
"Though the ruling will definitely affect the property sector, but we in SP Setia is confident that we can still achieve RM4 billion sales, driven by both local and foreign property sales," he told a media conference after the company's annual general meeting in Shah Alam, Selangor today.
Under Bank Negara's new guidelines that took effect from Jan 1, a prospective loan borrower will be assessed based on net income basis (instead of gross income) after deducting statutory deductions for tax and EPF and all other debt obligations (eg. car loan, other housing loan, credit cards).
Liew said SP Setia had already locked in sales of RM933 million for the first quarter of its current financial year ended Jan 31, 2012.
This represented a 27 per cent increase over the sales achieved in the corresponding period of previous year of RM737 million.
Liew said sustained demand for properties in the group's existing projects in the Klang Valley, Johor Baru and Penang would continue to underpin the group's sales performance in the 2012 financial year.
"We have many exciting new projects to help us capture new markets and further diversify our product mix.
"Our strong balance sheet also gives us ample room to continue to aggressively pursue opportunities to acquire good landbank thereby locking in future growth," he said.
Meanwhile, Liew said the SP Setia group also was keen on the London and Vietnam markets and was looking at opportunities there.
"We are looking at acquiring land in downtown Hanoi and Ho Chi Min for our property projects which will be more customer-based.
"SP Setia is also looking at acquiring land for property projects in London city as we want to make London an important market for SP Setia," he said.
Elsewhere, he said the group was targeting at least 30 to 50 per cent sales of its projects in Singapore would be from Malaysian buyers despite the 10 per cent increase in stamp duty for foreign buyers in the republic.
In Singapore, he said, the group would launch its maiden project namely a high-rise condominium development called Woodsville.
By Bernama
President and chief executive officer Tan Sri Liew Kee Sin who welcomed the ruling, said the move would ensure only genuine buyers who had no financial problems own a property.
"The whole idea of the central bank is to dampen property bubble or credit bubble which is going on.
"Though the ruling will definitely affect the property sector, but we in SP Setia is confident that we can still achieve RM4 billion sales, driven by both local and foreign property sales," he told a media conference after the company's annual general meeting in Shah Alam, Selangor today.
Under Bank Negara's new guidelines that took effect from Jan 1, a prospective loan borrower will be assessed based on net income basis (instead of gross income) after deducting statutory deductions for tax and EPF and all other debt obligations (eg. car loan, other housing loan, credit cards).
Liew said SP Setia had already locked in sales of RM933 million for the first quarter of its current financial year ended Jan 31, 2012.
This represented a 27 per cent increase over the sales achieved in the corresponding period of previous year of RM737 million.
Liew said sustained demand for properties in the group's existing projects in the Klang Valley, Johor Baru and Penang would continue to underpin the group's sales performance in the 2012 financial year.
"We have many exciting new projects to help us capture new markets and further diversify our product mix.
"Our strong balance sheet also gives us ample room to continue to aggressively pursue opportunities to acquire good landbank thereby locking in future growth," he said.
Meanwhile, Liew said the SP Setia group also was keen on the London and Vietnam markets and was looking at opportunities there.
"We are looking at acquiring land in downtown Hanoi and Ho Chi Min for our property projects which will be more customer-based.
"SP Setia is also looking at acquiring land for property projects in London city as we want to make London an important market for SP Setia," he said.
Elsewhere, he said the group was targeting at least 30 to 50 per cent sales of its projects in Singapore would be from Malaysian buyers despite the 10 per cent increase in stamp duty for foreign buyers in the republic.
In Singapore, he said, the group would launch its maiden project namely a high-rise condominium development called Woodsville.
By Bernama
Sentoria debuts on the Main Market at 84 sen
KUALA LUMPUR: Sentoria Group Bhd, made its debut on the Main Market of Bursa Malaysia Securities at 84 sen today, with 3,000 shares traded.
The shares recorded a discount of three sen over its offer price of 87 sen.
Sentoria, the first company listing for this year, is the developer and operator of Bukit Gambang Resort City (BGRC) in Kuantan, Pahang.
It is also the first and largest water park resort city in the east coast of Malaysia.
The company had earlier said it had received a total of 6,829 applications for 127.2 million shares with a total value of RM108.1 million, for the public tranche of 20.0 million shares under the group's initial public offering (IPO).
Its IPO had been oversubscribed by 5.4 times.
The company planned to invest RM48 million from internally-generated funds to develop a safari park, slated to commence operations by year-end.
Among its ongoing projects are Arabian Bay Resort, the safari park and Taman Indera Sempurna 2.
The company said it is undertaking a RM735 million gross development value project, known as Global Heritage, to develop up to 1,070 units of themed resort villas and a five-star, 273-suite boutique hotel over 46.134 hectares.
In a statement today it said the resort villas, sold on a sale-and-leaseback option strategy, will feature distinctive architectural designs based on international themes.
Its Head of Public and Investors Relations Nasiruddin Nasrun said the development of Global Heritage - the company's first high value project in BGRC - is in tandem with the group's growing profile as a hospitality operator and property developer in the east coast.
"We aim to not only increase our accommodation capacity in BGRC, but also attract high-end visitors to our theme park attractions and comprehensive conference and exhibition facilities," he added.
Global Heritage is targeted for completion by 2018 in stages.
"The sale-and-leaseback strategy gives property investors the option to buy and lease their luxury villas back to BGRC," the company said.
Sentoria's IPO raised RM51.6 million in proceeds for the group.
Sentoria said RM27.7 million would be allocated for working capital, RM11.2 million for repayment of bank borrowings, RM9.0 million for the purchase of property, plant and equipment and the balance RM3.7 million, to defray listing expenses.
By Bernama
The shares recorded a discount of three sen over its offer price of 87 sen.
Sentoria, the first company listing for this year, is the developer and operator of Bukit Gambang Resort City (BGRC) in Kuantan, Pahang.
It is also the first and largest water park resort city in the east coast of Malaysia.
The company had earlier said it had received a total of 6,829 applications for 127.2 million shares with a total value of RM108.1 million, for the public tranche of 20.0 million shares under the group's initial public offering (IPO).
Its IPO had been oversubscribed by 5.4 times.
The company planned to invest RM48 million from internally-generated funds to develop a safari park, slated to commence operations by year-end.
Among its ongoing projects are Arabian Bay Resort, the safari park and Taman Indera Sempurna 2.
The company said it is undertaking a RM735 million gross development value project, known as Global Heritage, to develop up to 1,070 units of themed resort villas and a five-star, 273-suite boutique hotel over 46.134 hectares.
In a statement today it said the resort villas, sold on a sale-and-leaseback option strategy, will feature distinctive architectural designs based on international themes.
Its Head of Public and Investors Relations Nasiruddin Nasrun said the development of Global Heritage - the company's first high value project in BGRC - is in tandem with the group's growing profile as a hospitality operator and property developer in the east coast.
"We aim to not only increase our accommodation capacity in BGRC, but also attract high-end visitors to our theme park attractions and comprehensive conference and exhibition facilities," he added.
Global Heritage is targeted for completion by 2018 in stages.
"The sale-and-leaseback strategy gives property investors the option to buy and lease their luxury villas back to BGRC," the company said.
Sentoria's IPO raised RM51.6 million in proceeds for the group.
Sentoria said RM27.7 million would be allocated for working capital, RM11.2 million for repayment of bank borrowings, RM9.0 million for the purchase of property, plant and equipment and the balance RM3.7 million, to defray listing expenses.
By Bernama
Wednesday, February 22, 2012
Green mall for Setia Alam
SETIA City Mall in Bandar Setia Alam, Shah Alam has received overhelming reponse with more than 95% of its retail outlet already leased out.
Setia City Mall marketing director Daniel Steffe said the response was good especially since the mall would only open its doors to the public in May.
“Being a neighbourhood mall, we received plenty of feedback from residents in the area through Facebook and Twitter.
“From the feedback, we gave leases to tenants that met our criteria. Like any other shopping centre, Setia City Mall will open from 10am to 10pm daily.
“Visitors can expect a wide range of offerings including Golden Screen Cinema’s nine-screen cinema, Parkson outlets, a Wangsa Bowl bowling alley, Harvey Norman, Courts, Zara and a Fitness First gymnasium.
“They also will not have to worry about parking as we will provide about 2,700 parking bays,” he said.
“We are also looking at having a karaoke outlet here and there is a park on the ground floor for children to play in. Parents can watch their children from the comfort of F&B outlets such as Starbucks, Delicious, Carl’s Junior and TGIF near the park,” Steffe added.
Key green initiatives in Setia City Mall include a high efficiency air-conditioning system, the implementation of an integrated building energy management system, natural daylight in the concourse and car park and energy-efficient escalators and lifts.
The mall includes a 20% saving in water consumption with rainwater harvesting for landscape irrigation, low-emissivity glazing, bicycle parking bays and bio-composting of organic food waste.
Setia City Mall development director Robert Spinks said he hoped that all the outlets would open at the same time when the shopping center opens it doors.
“It would be great if all the outlets open at the same time.
“Retailers lease each lot from RM6 to RM30 per square foot depending on the area they are situated,” he said,
The Setia City Mall is a 50/50 joint venture between Lend Lease and S P Setia. The RM450mil retail destination has also received Singapore’s Building and Constructrion Authority (BCA) Green Mark Gold Award.
It it the first shopping center in Malaysia to receive the accreditation.
The award is in recognition of the Setia City Mall’s sustainability initiatives, which meet the five evaluation criteria — energy and water efficiency, environment protection, indoor air quality and innovation.
By The Star
IGB Corp FY2011 net profit, revenue jumps
IGB Corporation Bhd posted an increase of 36.09 per cent in net profit to RM237.65 million for the financial year ended Dec 31, 2011 from RM174.62 million previously.
Revenue for the year rose to RM772.13 million from RM719.36 million a year ago.
For the fourth quarter (Q4), net profit surged to RM91.88 million from RM53.1 million in the previous corresponding period due to the improved performance by the hotel division as well as the inclusion of a one-off gain on the disposal of an associate company.
Revenue in Q4 was up by five per cent to RM225.03 million from RM214.98 million in the same period previously due to higher contributions from property investment, hotel and construction divisions.
IGB said although global economic conditions are still expected to be challenging, it is envisaged that the local economy would continue to grow, albeit at a moderate pace.
“The group’s three major operating sectors - property development, property investment and hotel - are not expected to be significantly adversely affected, barring a drastic change in the global and local economic conditions,” it said.
For property development, the group is targeting to launch a couple of high-end condominium developments.
In the commercial sector, all office buildings located in Mid Valley City have achieved occupancy rates in excess of 95 per cent while rental renewals in 2011 have shown a five per cent to 20 per cent increase.
The total rental collections are therefore expected to increase in the current year, it added.
In the retail segment, the group’s two major shopping malls, namely, Mid Valley Megamall and The Gardens Mall are currently enjoying 100 per cent occupancy and contributions from these malls are expected to improve compared to the last financial year.
IGB is confident the operational results for the current fiscal year will be better than the previous year.
By Bernama
Revenue for the year rose to RM772.13 million from RM719.36 million a year ago.
For the fourth quarter (Q4), net profit surged to RM91.88 million from RM53.1 million in the previous corresponding period due to the improved performance by the hotel division as well as the inclusion of a one-off gain on the disposal of an associate company.
Revenue in Q4 was up by five per cent to RM225.03 million from RM214.98 million in the same period previously due to higher contributions from property investment, hotel and construction divisions.
IGB said although global economic conditions are still expected to be challenging, it is envisaged that the local economy would continue to grow, albeit at a moderate pace.
“The group’s three major operating sectors - property development, property investment and hotel - are not expected to be significantly adversely affected, barring a drastic change in the global and local economic conditions,” it said.
For property development, the group is targeting to launch a couple of high-end condominium developments.
In the commercial sector, all office buildings located in Mid Valley City have achieved occupancy rates in excess of 95 per cent while rental renewals in 2011 have shown a five per cent to 20 per cent increase.
The total rental collections are therefore expected to increase in the current year, it added.
In the retail segment, the group’s two major shopping malls, namely, Mid Valley Megamall and The Gardens Mall are currently enjoying 100 per cent occupancy and contributions from these malls are expected to improve compared to the last financial year.
IGB is confident the operational results for the current fiscal year will be better than the previous year.
By Bernama
Homeless crisis due to lack of affordable homes
ONE of the main contributing factors to Kuala Lumpur’s homeless problem is the lack of affordable housing for the poor, said Universiti Kebangsaan Malaysia’s Institute of Ethnic Studies research fellow Datuk Dr Denison Jayasooria.
According to Denison, the shortage of affordable housing, particularly to renters with extremely low incomes like the rural poor, often result in them ending up on the streets.
Denison, who was responding to StarMetro’s cover story yesterday, said hundreds of people from rural areas come to the city in search of work and a better life, yet when they arrive they find the cost of living in KL is too high.
“Before they can even find a job, finding a reasonable accommodation that is close to their workplace with decent facilities and low rental is simply impossible,’’ he said.
“With no decent and cheap housing for these people, it is not surprising to find them seeking shelter under the bridges in the city,’’ Denison said.
Denison said the government, and in this case Kuala Lumpur City Hall (DBKL), must address the shortage of rental housing for these group.
“DBKL must provide a decent hostel style housing with a common bathroom and water facilities at least, with the rental at RM10 a day. And these accommodation must be given to genuine cases who have come to the city seeking better employment for casual jobs like despatch worker with low income,’’ he added.
“The city must review this matter and find solutions for these group,’’ he said.
“There must be constant monitoring of this problem as well,’’ Denison added.
Denison said most of the big cities in the world have an affordable home system that looks to the needs of the rural poor and KL must start looking at providing such facilities for its homeless community.
Kuala Lumpur City Hall Advisory Board member C. Ramanathan agreed that lack of affordable housing is a serious concern for the city, but added the problem is not just confined to the young working adults but students who come to the city to seek education or enrol in courses.
Ramanathan, who holds the housing and squatter relocation portfolio in the DBKL board, said homelessness comes about when people who have to choose between shelter or other basic needs tends to forgo the most expensive need.
“When people are unable to pay for basic necessities like house, food, medicine, education, they often they choose to live in the streets as housing absorbs the biggest portion of their income,’’ Ramanathan said.
Federal Territories and Selangor Community Association (Permas) president Tan Jo Hann said a federal policy was needed to look at the housing needs of this group.
“The Government must provide the safety net for them, in fact City Hall can offer the empty PPR units (People’s Housing Scheme) for these group while they look for a job,’’ he said.
The arrangement, Tan added, though temporary, will provide them with a roof over their heads and also keep them off the streets or else more and more slums will emerge in the city.
By The Star
According to Denison, the shortage of affordable housing, particularly to renters with extremely low incomes like the rural poor, often result in them ending up on the streets.
Denison, who was responding to StarMetro’s cover story yesterday, said hundreds of people from rural areas come to the city in search of work and a better life, yet when they arrive they find the cost of living in KL is too high.
“Before they can even find a job, finding a reasonable accommodation that is close to their workplace with decent facilities and low rental is simply impossible,’’ he said.
“With no decent and cheap housing for these people, it is not surprising to find them seeking shelter under the bridges in the city,’’ Denison said.
Denison said the government, and in this case Kuala Lumpur City Hall (DBKL), must address the shortage of rental housing for these group.
“DBKL must provide a decent hostel style housing with a common bathroom and water facilities at least, with the rental at RM10 a day. And these accommodation must be given to genuine cases who have come to the city seeking better employment for casual jobs like despatch worker with low income,’’ he added.
“The city must review this matter and find solutions for these group,’’ he said.
“There must be constant monitoring of this problem as well,’’ Denison added.
Denison said most of the big cities in the world have an affordable home system that looks to the needs of the rural poor and KL must start looking at providing such facilities for its homeless community.
Kuala Lumpur City Hall Advisory Board member C. Ramanathan agreed that lack of affordable housing is a serious concern for the city, but added the problem is not just confined to the young working adults but students who come to the city to seek education or enrol in courses.
Ramanathan, who holds the housing and squatter relocation portfolio in the DBKL board, said homelessness comes about when people who have to choose between shelter or other basic needs tends to forgo the most expensive need.
“When people are unable to pay for basic necessities like house, food, medicine, education, they often they choose to live in the streets as housing absorbs the biggest portion of their income,’’ Ramanathan said.
Federal Territories and Selangor Community Association (Permas) president Tan Jo Hann said a federal policy was needed to look at the housing needs of this group.
“The Government must provide the safety net for them, in fact City Hall can offer the empty PPR units (People’s Housing Scheme) for these group while they look for a job,’’ he said.
The arrangement, Tan added, though temporary, will provide them with a roof over their heads and also keep them off the streets or else more and more slums will emerge in the city.
By The Star
KrisAssets revalues Mid Valley
KRISASSETS Holdings Bhd has revalued Mid Valley Megamall 18 per cent higher at RM2.36 billion as at December 21 2011, compared the revaluation as at December 30 2009 of RM2 bilion.
It said the market value of The Gardens Mall is RM930 million, which is 13.4 per cent higher from the valuation on September 30 2011, at RM820 million.
The company told Bursa Malaysia that the revaluation was carried out by independent professional valuers, Jordan Lee & Jaafar Sdn Bhd.
Mid Valley is owned by Mid Valley City Sdn Bhd, while The Gardens owned by Mid Valley City Gardens Sdn Bhd, both wholly-owned units of KrisAssets.
By Business Times
It said the market value of The Gardens Mall is RM930 million, which is 13.4 per cent higher from the valuation on September 30 2011, at RM820 million.
The company told Bursa Malaysia that the revaluation was carried out by independent professional valuers, Jordan Lee & Jaafar Sdn Bhd.
Mid Valley is owned by Mid Valley City Sdn Bhd, while The Gardens owned by Mid Valley City Gardens Sdn Bhd, both wholly-owned units of KrisAssets.
By Business Times
Consultant assessing bid for late Tan Sri Lee Yan Lian’s family assets
PETALING JAYA: The sale by tender of the five parcels of freehold land in the Klang Valley owned by the late Tan Sri Lee Yan Lian's family has attracted strong interest from bidders.
Teh: ‘The bidders are mostly Malaysians and they comprise both companies and individuals.’
The closing date for the tender was on Jan 30. Colliers International Property Consultants Sdn Bhd is the property agent for the exercise.
Colliers managing director Teh Teik Bin said the consultancy was now assessing the bids and the successful bidders would be finalised next month.
“The bidders are mostly Malaysians and they comprise both companies and individuals,” Teh said.
The five parcels of land are part of the prime land in the Lee family's estate.
A well-known philantrophist and community leader, Lee was a successful housing developer in the 1960s until his demise in 1983.
An industry observer said that in the wake of land scarcity in the Klang Valley, these parcels were among the last sizeable freehold land suitable for redevelopment into mixed property projects.
In the sale tender, a 7,239-sq-ft land in the prime location of Jalan Bukit Bintang, Kuala Lumpur, has a reserve price of RM50mil. The land is now occupied by The Malaysia Hotel.
The second piece, measuring 276,832 sq ft at 4 miles of Old Klang Road (near the Pearl International Hotel), has a reserve price of RM90mil.
The other three parcels are in Petaling Jaya.
A 265,245-sq-ft plot in Jalan SS23/15 in Taman SEA has a reserve price of RM150mil, and another piece of 82,715 sq ft in Jalan SS2/64, which is currently used as a car park, is going for RM100mil.
A vacant 84,315-sq-ft land made up of seven plots with old bungalows on two plots in Taman Tan Sri Lee Yan Lian in Section 16 has a reserve price of RM25mil.
By The Star
The closing date for the tender was on Jan 30. Colliers International Property Consultants Sdn Bhd is the property agent for the exercise.
Colliers managing director Teh Teik Bin said the consultancy was now assessing the bids and the successful bidders would be finalised next month.
“The bidders are mostly Malaysians and they comprise both companies and individuals,” Teh said.
The five parcels of land are part of the prime land in the Lee family's estate.
A well-known philantrophist and community leader, Lee was a successful housing developer in the 1960s until his demise in 1983.
An industry observer said that in the wake of land scarcity in the Klang Valley, these parcels were among the last sizeable freehold land suitable for redevelopment into mixed property projects.
In the sale tender, a 7,239-sq-ft land in the prime location of Jalan Bukit Bintang, Kuala Lumpur, has a reserve price of RM50mil. The land is now occupied by The Malaysia Hotel.
The second piece, measuring 276,832 sq ft at 4 miles of Old Klang Road (near the Pearl International Hotel), has a reserve price of RM90mil.
The other three parcels are in Petaling Jaya.
A 265,245-sq-ft plot in Jalan SS23/15 in Taman SEA has a reserve price of RM150mil, and another piece of 82,715 sq ft in Jalan SS2/64, which is currently used as a car park, is going for RM100mil.
A vacant 84,315-sq-ft land made up of seven plots with old bungalows on two plots in Taman Tan Sri Lee Yan Lian in Section 16 has a reserve price of RM25mil.
By The Star
Glomac unit buys land in Klang
GLOMAC Bhd’s wholly-owned subsidiary, Kelana Kualiti Sdn Bhd, has bought two parcels of lands via an auction for RM44 million.
The land is located north of Klang town.
Glomac said the acquisition is in line with its core strategy of acquiring suitable development landbank within the Klang Valley with strong potential for prime and sizable new developments.
“The group intends to develop a mixed development project on the lands,” it said in a statement to Bursa Malaysia yesterday.
By Business Times
The land is located north of Klang town.
Glomac said the acquisition is in line with its core strategy of acquiring suitable development landbank within the Klang Valley with strong potential for prime and sizable new developments.
“The group intends to develop a mixed development project on the lands,” it said in a statement to Bursa Malaysia yesterday.
By Business Times
Tan & Tan's G Residence to be sold out by year-end
KUALA LUMPUR: G Residence, developed by Opt Ventures Sdn Bhd, a unit of Tan and Tan Development Bhd, is expected to be sold out by year-end.
Tan and Tan Development is an IGB Corp Bhd company.
IGB's head of property development, Teh Boon Ghee, said: "The residence consists of two blocks of serviced apartments and a two-storey retail shop.
"All the units in Block A are sold out, and only about 40 per cent units are available in Block B," he told a press briefing on Tan and Tan Development's latest project, the G Residence.
The development, located on a 1.46-hectare land along Jalan Desa Pandan here, has a total gross development value of RM430 million.
The residence was officially opened for sales on Dec 8 last year, and is scheduled for completion in Feb 2015.
G Residence is priced at an average of RM650 per square feet, and would range between RM610,000 and RM1 million per unit.
Meanwhile, Teh said: "We are always looking for land to buy and develop, especially in the Klang Valley area."
Tan and Tan Development still had 688 hectares of undeveloped land that would be fully utilised in 15 years, he said.
By Bernama
Tan and Tan Development is an IGB Corp Bhd company.
IGB's head of property development, Teh Boon Ghee, said: "The residence consists of two blocks of serviced apartments and a two-storey retail shop.
"All the units in Block A are sold out, and only about 40 per cent units are available in Block B," he told a press briefing on Tan and Tan Development's latest project, the G Residence.
The development, located on a 1.46-hectare land along Jalan Desa Pandan here, has a total gross development value of RM430 million.
The residence was officially opened for sales on Dec 8 last year, and is scheduled for completion in Feb 2015.
G Residence is priced at an average of RM650 per square feet, and would range between RM610,000 and RM1 million per unit.
Meanwhile, Teh said: "We are always looking for land to buy and develop, especially in the Klang Valley area."
Tan and Tan Development still had 688 hectares of undeveloped land that would be fully utilised in 15 years, he said.
By Bernama
S’pore house prices to drop in next 6 months
SINGAPORE: PropertyGuru, Singapore’s leading property site, revealed its fourth quarter 2011 survey results on the property market sentiment in Singapore.
The survey indicates that home buyers and investors expect the new government measures to lower the cost of property, compared to third quarter 2011.
Largely due to the impact of ABSD (Additional Buyer’s Stamp Duty), 52% believe that property prices will decrease in the next six months.
The government has imposed an ABSD for private property of between 3% and 10% for Singaporeans, Permanent Residents and foreigners to moderate investment demand for private residential property and promote a more stable and sustainable market since Dec 8, 2011.
Rentals were also expected to fall in the same period as a reaction to the availability of future supply.
By Bernama
The survey indicates that home buyers and investors expect the new government measures to lower the cost of property, compared to third quarter 2011.
Largely due to the impact of ABSD (Additional Buyer’s Stamp Duty), 52% believe that property prices will decrease in the next six months.
The government has imposed an ABSD for private property of between 3% and 10% for Singaporeans, Permanent Residents and foreigners to moderate investment demand for private residential property and promote a more stable and sustainable market since Dec 8, 2011.
Rentals were also expected to fall in the same period as a reaction to the availability of future supply.
By Bernama
China home prices fall in January
BEIJING: Home prices in more than two thirds of China's major cities continued their slump in January from a month before, the government announced, as moves to cool the market continued to bite.
Of 70 cities tracked by the government, 48 saw prices fall month-on-month, slightly fewer than the 52 cities that recorded negative house price growth in December, the National Bureau of Statistics said, while 22 were seen as stable.
Beijing has introduced a range of measures aimed at curbing the real estate market over the last year, such as bans on buying second homes, hiking minimum down-payments and introducing property taxes in select cities.
But analysts worry the correction could have broader implications for the economy, which is already widely forecast to slow this year from 9.2% growth in 2011.
Premier Wen Jiabao reiterated this week that the government had no plans to relax policy restrictions aimed at cooling the market.
Property analysts EC Harris said in a research note that the slowdown was likely to continue, while warning of the risks for the wider economy.
“Property prices in the mid- to long-term will likely continue to decrease as long as the government's current policies remain in place,” the firm said.
“The Chinese government's tightening policies have been effective at reducing fears of a property bubble.”
But the measures “could lead to a cascading' effect that causes the economy to slow down too much”, it added.
China's property market weakened last year, reflected in slower investment and sales, as the government sought to bring down runaway housing prices on fears of a speculative bubble.
In December, China moved to ease credit by trimming bank reserves but the property industry is waiting to see if the government might relax measures aimed specifically at the sector.
China's Renmin University has said the government would likely relax some market curbs in 2012 due to concerns that slumping prices could hurt growth.
Analysts forecast housing prices could fall even further when the measures are eased, as pent-up supply pours into the market.
By AFP
Tuesday, February 21, 2012
Iskandar waterfront zones open to investors
JOHOR BARU: The doors are now open for investors keen in waterfront development in Iskandar Malaysia.
Businessmen and groups such as the chambers of commerce and industry are encouraged to participate actively in development at the Danga Bay waterfront, the central business district and the Tebrau basin.
The three zones make up the southern part of Iskandar Malaysia, the up-and-rising growth area in the country.
In a media briefing here yesterday, Iskandar Waterfront Holdings (IWH) Bhd chief executive officer Datuk Lim Kang Hoo said infrastructures, such as trunk roads, are already in place.
He added that the three zones are considered the most strategically located in Iskandar Malaysia.
As such, this is an opportunity for businessmen to invest in prime waterfront land to develop high-value projects such as hotels and condominiums.
"Any parties interested to engage in the development of the three areas are encouraged to do so.
"As the areas are part of the urban planning, do not expect to pay a low land premium. This is because we have invested in land reclamation and dredging which do not come cheap," Lim said.
Kumpulan Prasarana Rakyat Johor (KPRJ) chief executive officer Johar Salim Yahaya, who was present at the briefing, said KPRJ, which owns several parcels of waterfront land in Iskandar Malaysia, is merely consolidating pieces of its interest with IWH.
"As we are moving into a different phase of development, we need to have commercial input through our consolidation with IWH," he said.
"We have created a situation which is conducive for development. We need investors to come in as it will be too costly for us to develop everything on our own.
"As a master developer, we will orchestrate the creation of value and to sustain it," Johar added.
By Business Times
Businessmen and groups such as the chambers of commerce and industry are encouraged to participate actively in development at the Danga Bay waterfront, the central business district and the Tebrau basin.
The three zones make up the southern part of Iskandar Malaysia, the up-and-rising growth area in the country.
In a media briefing here yesterday, Iskandar Waterfront Holdings (IWH) Bhd chief executive officer Datuk Lim Kang Hoo said infrastructures, such as trunk roads, are already in place.
He added that the three zones are considered the most strategically located in Iskandar Malaysia.
As such, this is an opportunity for businessmen to invest in prime waterfront land to develop high-value projects such as hotels and condominiums.
"Any parties interested to engage in the development of the three areas are encouraged to do so.
"As the areas are part of the urban planning, do not expect to pay a low land premium. This is because we have invested in land reclamation and dredging which do not come cheap," Lim said.
Kumpulan Prasarana Rakyat Johor (KPRJ) chief executive officer Johar Salim Yahaya, who was present at the briefing, said KPRJ, which owns several parcels of waterfront land in Iskandar Malaysia, is merely consolidating pieces of its interest with IWH.
"As we are moving into a different phase of development, we need to have commercial input through our consolidation with IWH," he said.
"We have created a situation which is conducive for development. We need investors to come in as it will be too costly for us to develop everything on our own.
"As a master developer, we will orchestrate the creation of value and to sustain it," Johar added.
By Business Times
Demand for luxury houses seen to be flattish
PETALING JAYA: Demand for houses priced around RM1mil has dropped and is expected to be flattish throughout this year, a reflection of real estate transaction volumes across the Asia-Pacific, an online survey in Malaysia and a Hong Kong-based report show.
External uncertainties, the general election factor on the local front and a general wariness about a possible bubble in the Malaysian market had dampened the market, said iProperty Group chief executive officer Shaun Di Gregoria.
“We are seeing a reduction in volume for the top-end market. Rental is also expected to come off a bit for the top end,” he said after launching the result of an online survey at iproperty.com.my conducted from Dec 5, 2011 to Jan 19, 2012 involving 3,459 respondents.
The findings are supported by telephone interviews with two property agents.
Despite that, Di Gregorio said, Malaysians were expected to continue to be upbeat about the property market, with interest seen mostly in properties priced between RM400,000 and RM500,000.
The survey revealed that 35.7% of the respondents considered themselves property buyers while 26.2% identified themselves as property owners.
This is part of the first cross-market online property survey conducted by the iProperty Group covering Singapore, Indonesia, Hong Kong and Malaysia that attracted about 8,500 respondents.
Di Gregorio said although various measures had been taken by the authorities to discourage speculation, the Malaysian property market continued to be friendly to buyers.
He said Malaysia was the number one destination for Singaporeans as property prices here were still affordable to them.
“Yield in Singapore and Hong Kong is low because of the high capital cost there. The United States and Europe have their own challenges, so South-East Asia will increase in popularity, with Malaysia being a good market to be in throughout this year. There is positive sentiment to invest here,” he said.
About 40% of the Singaporean respondents said Malaysia was their preferred destination, followed by Australia (19.4%).
Meanwhile, about 40% of Malaysians considered Australia as their preferred overseas property investment destination, 19.8% liked Singapore and 13.7% chose the United Kingdom.
While iProperty Group paints a positive picture of the local property market, 58.6% of those who responded to the survey in Malaysia believed there is a property bubble in this country versus 53.85% of those who responded in Singapore.
On a larger scale, the drop in transaction volume is also reflected in the Asia-Pacific. A quarterly report by the Asia Pacific Real Estate Association (APREA) and Real Capital Analytics said there was a 32% drop in real estate transaction in the Asia-Pacific year-on-year to US$85.3 bil as at Dec 31, 2011.
“It moderated by as much as 18% since the end of the third quarter last year,” APREA said in a statement.
“Concerns over the eurozone debt crisis contributed to the moderation in the fourth quarter. A strong performance by Singapore helped mitigate the declines in other countries,” said APREA chief executive officer Peter Mitchell.
The decline was seen across all industry segments. Transactions in hotels fell 23%, commercial property 20%, land 17%, and apartments 8%. Stripping out land transactions, Japan led in regional sales volume, accounting for 22% of the fourth-quarter sales. This was followed by Australia with 17% and Singapore, 16%.
“Transactions in the region are continuing to be dominated by domestic players,” Mitchell said.
By The Star
External uncertainties, the general election factor on the local front and a general wariness about a possible bubble in the Malaysian market had dampened the market, said iProperty Group chief executive officer Shaun Di Gregoria.
“We are seeing a reduction in volume for the top-end market. Rental is also expected to come off a bit for the top end,” he said after launching the result of an online survey at iproperty.com.my conducted from Dec 5, 2011 to Jan 19, 2012 involving 3,459 respondents.
The findings are supported by telephone interviews with two property agents.
Despite that, Di Gregorio said, Malaysians were expected to continue to be upbeat about the property market, with interest seen mostly in properties priced between RM400,000 and RM500,000.
The survey revealed that 35.7% of the respondents considered themselves property buyers while 26.2% identified themselves as property owners.
This is part of the first cross-market online property survey conducted by the iProperty Group covering Singapore, Indonesia, Hong Kong and Malaysia that attracted about 8,500 respondents.
Di Gregorio said although various measures had been taken by the authorities to discourage speculation, the Malaysian property market continued to be friendly to buyers.
He said Malaysia was the number one destination for Singaporeans as property prices here were still affordable to them.
“Yield in Singapore and Hong Kong is low because of the high capital cost there. The United States and Europe have their own challenges, so South-East Asia will increase in popularity, with Malaysia being a good market to be in throughout this year. There is positive sentiment to invest here,” he said.
About 40% of the Singaporean respondents said Malaysia was their preferred destination, followed by Australia (19.4%).
Meanwhile, about 40% of Malaysians considered Australia as their preferred overseas property investment destination, 19.8% liked Singapore and 13.7% chose the United Kingdom.
While iProperty Group paints a positive picture of the local property market, 58.6% of those who responded to the survey in Malaysia believed there is a property bubble in this country versus 53.85% of those who responded in Singapore.
On a larger scale, the drop in transaction volume is also reflected in the Asia-Pacific. A quarterly report by the Asia Pacific Real Estate Association (APREA) and Real Capital Analytics said there was a 32% drop in real estate transaction in the Asia-Pacific year-on-year to US$85.3 bil as at Dec 31, 2011.
“It moderated by as much as 18% since the end of the third quarter last year,” APREA said in a statement.
“Concerns over the eurozone debt crisis contributed to the moderation in the fourth quarter. A strong performance by Singapore helped mitigate the declines in other countries,” said APREA chief executive officer Peter Mitchell.
The decline was seen across all industry segments. Transactions in hotels fell 23%, commercial property 20%, land 17%, and apartments 8%. Stripping out land transactions, Japan led in regional sales volume, accounting for 22% of the fourth-quarter sales. This was followed by Australia with 17% and Singapore, 16%.
“Transactions in the region are continuing to be dominated by domestic players,” Mitchell said.
By The Star
Mitrajaya unit bags deals worth RM181m
KUALA LUMPUR: Mitrajaya Holdings Bhd’s (MHB) wholly owned unit, Pembinaan Mitrajaya Sdn Bhd (PMSB), yesterday secured three contracts worth RM181.4 million.
The contracts were awarded by Syarikat Prasarana Negara Bhd (SPNB) and Putrajaya Holdings Sdn Bhd.
PMSB was appointed as nominated sub-contractor by SPNB for the extension of Kelana Jaya and Ampang light rail transit lines worth RM46.8 million and RM55.2 million respectively.
It is also the main contractor for the development of 560 units of medium-cost public apartments inclusive of common facilities and eight units of shop offices at Zone 12E and 12F, Precinct 11 in Putrajaya for RM79.4 million.
By Business Times
The contracts were awarded by Syarikat Prasarana Negara Bhd (SPNB) and Putrajaya Holdings Sdn Bhd.
PMSB was appointed as nominated sub-contractor by SPNB for the extension of Kelana Jaya and Ampang light rail transit lines worth RM46.8 million and RM55.2 million respectively.
It is also the main contractor for the development of 560 units of medium-cost public apartments inclusive of common facilities and eight units of shop offices at Zone 12E and 12F, Precinct 11 in Putrajaya for RM79.4 million.
By Business Times
Iris Land in PNG housing project
KUALA LUMPUR: Iris Corp Bhd’s wholly-owned subsidiary, Iris Land Sdn Bhd, has entered into a teaming agreement with Kida Maru Holdings Ltd for a housing project in Port Moresby, Papua New Guinea (PNG), worth RM160 million.
Kida Maru owns 14.75ha of land in Section Granville in Port Moresby with a valid developer’s licence.
It will jointly assist Iris Land in the development of the project that includes developing 275 units of houses.
The development is expected to be funded via project financing to be procured by the company.
By Business Times
Kida Maru owns 14.75ha of land in Section Granville in Port Moresby with a valid developer’s licence.
It will jointly assist Iris Land in the development of the project that includes developing 275 units of houses.
The development is expected to be funded via project financing to be procured by the company.
By Business Times
Tesco launches Thai property fund IPO
TESCO plc, the world's third-largest retailer, launched the initial public offering (IPO) of its Thailand property fund yesterday, aiming to raise up to 18 billion baht (RM1.9 billion) to finance future expansion.
The offering is part of a trend among retailers in recent years to squeeze more value from their real estate assets, bundling them into a property fund, selling the fund to investors and leasing back the property.
The Tesco Lotus Retail Growth Freehold and Leasehold Property Fund, as it is formally called, comprises 17 shopping malls anchored by a Tesco Lotus hypermarket in cities, including Bangkok and tourist destinations such as Krabi.
The fund "is well positioned to capitalise on the steady growth of the Thai economy, the strength of the retail sector and increasing wealth and consumption across the country," Tesco Lotus chief executive Chris Bush said in a statement.
The property fund, similar to a real estate investment trust, or REIT, will offer shares at a price range of 9.65 baht-10.40 baht (RM1.02-RM1.13) each, valuing the total deal at up to 18 billion baht, Tesco's Ek-Chai Distribution System Co unit said in a statement.
At that price, the fund would have a yield of 6.5 to 7 per cent per year. That yield would compare with 8.14 per cent for both the CPN Retail Growth Leasehold Property Fund, which owns three malls and an office tower, and movie theatre owner Major Cineplex Lifestyle Leasehold Property Fund, according to figures from the Asia Pacific Real Estate Association.
Tesco Lotus expects to add at least two more assets to the fund in the 2012/2013 fiscal year and one or two assets a year after that, according to the statement.
The IPO, Thailand's biggest since Rayong Refinery's US$710 million (RM2.15 billion) offering in May 2006, received US$40 million in commitments from US fund manager, the Capital Group Companies, two sources with direct knowledge of the deal said yesterday.
Bank of America Merrill Lynch, Nomura Holdings Inc, Phatra Securities and Royal Bank of Scotland were hired to manage the IPO.
Tesco lags only French group Carrefour and US industry leader Wal-Mart by annual sales, and has over 5,300 stores in 14 countries.
By Reuters
The offering is part of a trend among retailers in recent years to squeeze more value from their real estate assets, bundling them into a property fund, selling the fund to investors and leasing back the property.
The Tesco Lotus Retail Growth Freehold and Leasehold Property Fund, as it is formally called, comprises 17 shopping malls anchored by a Tesco Lotus hypermarket in cities, including Bangkok and tourist destinations such as Krabi.
The fund "is well positioned to capitalise on the steady growth of the Thai economy, the strength of the retail sector and increasing wealth and consumption across the country," Tesco Lotus chief executive Chris Bush said in a statement.
The property fund, similar to a real estate investment trust, or REIT, will offer shares at a price range of 9.65 baht-10.40 baht (RM1.02-RM1.13) each, valuing the total deal at up to 18 billion baht, Tesco's Ek-Chai Distribution System Co unit said in a statement.
At that price, the fund would have a yield of 6.5 to 7 per cent per year. That yield would compare with 8.14 per cent for both the CPN Retail Growth Leasehold Property Fund, which owns three malls and an office tower, and movie theatre owner Major Cineplex Lifestyle Leasehold Property Fund, according to figures from the Asia Pacific Real Estate Association.
Tesco Lotus expects to add at least two more assets to the fund in the 2012/2013 fiscal year and one or two assets a year after that, according to the statement.
The IPO, Thailand's biggest since Rayong Refinery's US$710 million (RM2.15 billion) offering in May 2006, received US$40 million in commitments from US fund manager, the Capital Group Companies, two sources with direct knowledge of the deal said yesterday.
Bank of America Merrill Lynch, Nomura Holdings Inc, Phatra Securities and Royal Bank of Scotland were hired to manage the IPO.
Tesco lags only French group Carrefour and US industry leader Wal-Mart by annual sales, and has over 5,300 stores in 14 countries.
By Reuters
Monday, February 20, 2012
Malaysia attractive for property ownership
KUALA LUMPUR: Low barriers and healthy prices makes Malaysia an attractive market for property ownership not only among locals but also foreigners, says iProperty Group Ltd chief executive officer Shaun Di Gregorio.
He said the main concern in the Malaysian property market today was that of rising prices.
"Other than price, buyers also expressed concern over home financing policies, interest rates, errant developers and finished quality," he said when revealing the findings of the iProperty.com Asia Property Market Sentiment Report 2012 here today.
A total of 3,459 respondents took part in the online survey conducted by Malaysia's number one property website.
Di Gregorio said in light of economic uncertainties in Europe and the United States, consumers could expect a slowdown in the high-end residential property sub-sector this year as potential buyers were likely to remain cautious.
"Despite this, properties in Malaysia were significantly cheaper in comparison with other markets in the region but were poised to appreciate over the next decade.
"The Malaysian survey participants were both upbeat about the property market and at the same time wary of a possible bubble, and with good reasons, given the state of the Malaysian economy going into 2012," he added.
By Bernama
He said the main concern in the Malaysian property market today was that of rising prices.
"Other than price, buyers also expressed concern over home financing policies, interest rates, errant developers and finished quality," he said when revealing the findings of the iProperty.com Asia Property Market Sentiment Report 2012 here today.
A total of 3,459 respondents took part in the online survey conducted by Malaysia's number one property website.
Di Gregorio said in light of economic uncertainties in Europe and the United States, consumers could expect a slowdown in the high-end residential property sub-sector this year as potential buyers were likely to remain cautious.
"Despite this, properties in Malaysia were significantly cheaper in comparison with other markets in the region but were poised to appreciate over the next decade.
"The Malaysian survey participants were both upbeat about the property market and at the same time wary of a possible bubble, and with good reasons, given the state of the Malaysian economy going into 2012," he added.
By Bernama
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