Tuesday, 29 April 2014

Suntrack to launch Cyberjaya SoHos by end May

CYBERJAYA: Suntrack Development Sdn Bhd and Prima Avenue Property Sdn Bhd plan to launch their new Kanvas SoHo joint venture in Cyberjaya by end-May, said Suntrack project director James Tan.

The SoHos, which are now open for registration and said to be “quite affordable”, are targeted at first-time property buyers, entrepreneurs, singles and couples working in Cyberjaya, he told reporters at a project briefing recently.

“There is potential for yields of up to 6% based on our surveys of comparable properties in the area,” said Tan.

He said the population of Cyberjaya, who are employees of companies primarily in the IT and service industries, is currently 52,000, but it is set to double by 2020.

He added the project has attracted much interest from the public.

The freehold Kanvas SoHo has a gross development value of RM201 million and comprises 646 SoHos housed in two 30-storey towers and 16 retail lots on a 3.4-acre site (1.37ha) on Jalan Teknokrat 6.

Priced from RM260,000 to RM322,000, the SoHos offer built-ups of 484 sq ft and 485 sq ft and come partly furnished with built-in kitchen cabinets, branded hoods and hobs, two air conditioners, a water heater tank, fridge and parking bay.

Maintenance fees are RM180 per month.

Other facilities include a 25m infinity pool, dipping pool with jacuzzi and gymnasium, as well as meeting rooms, storage cubicles for rent and two sky lounges atop the SoHo towers.

Access to the SoHos will be controlled by security cards that limit residents’ access to only common areas, including the sky lounges, and their own floors.

About 150 parking spaces will be allocated to the shops.

“Ideally, we’re looking at four restaurants, a supermarket and launderette,” he said of the potential retail tenant mix.

The project is aiming for green certification from the Real Estate and Housing Developer’s Association.

Some of its green features include cross ventilation, a predominantly north-south orientation and rainwater harvesting for use in common areas.

Kanvas SoHo is due to be completed by June 2017.



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Monday, 28 April 2014

Construction begins on Freeport A’Famosa Outlet Village

MELAKA: The Freeport A’Famosa Outlet Village in Alor Gajah has commenced construction after Tun Mohd Khalil Yaakob, the Yang di-Pertua Negeri of Melaka, broke ground in a ceremony last month.

The development, a partnership between A’Famosa Group’s wholly-owned subsidiary Langkah Realiti Sdn Bhd and Freeport Retail, a European developer, will have an estimated gross development value of RM190 million and a gross land area (GLA) of 310,000 sq ft (28,800  sq m).

Chris Milliken, the commercial director of Freeport Retail, said he is looking forward to bringing the Freeport outlet shopping experience to central Malaysia.

“We will offer premier designer fashion brands, casual wear, accessories and sports brands at low prices ... [with the development having] the added footfall benefit and synergy of two popular leisure and tourist destinations on its doorstep,” he said.

The Freeport A’Famosa Outlet Village will be next to A’Famosa Resort, a 520ha golf and leisure resort. Phase 1 will cover a GLA of 175,000 sq ft and feature more than 80 retail units, 1,200 parking bays as well as an exhibition and event hall. It is slated to open in April, 2015.

Julian Lau, director of Langkah Realiti, said that the joint venture with Freeport Retail is a major step forward for the retail industry in the region with long-term positive contributions to the state and local economy.

The project, which is expected to generate jobs for over 600 people, will be developed over three phases with Phase 2 spanning 62,000 sq ft of GLA and Phase 3, 73,000 sq ft. Freeport A’Famosa Outlet Village, with its strategic location and merchandise from international brands with savings of between 30% and 70%, is expected to be a major shopping destination.

The outlet will be designed as a single-level, village-style development with a Dutch colonial theme to reflect Melaka’s image as a historical town. The project will emphasise customer care with a VIP lounge, valet parking, gift wrapping and other personal shopping services.

The development will have a spillover from A’Famosa Resort’s two million visitors annually, a catchment of 9.3 million people from the Klang Valley, Negeri Sembilan and Melaka, as well as from the 14 million visitors who visit Melaka annually.

The site is accessible via the North-South Expressway and the Alor Gajah-Simpang Ampat interchange and is a 55 minute-drive from Kuala Lumpur.

A’Famosa Resort is a one-stop centre for business and pleasure. It offers an international championship golf course, a water theme park, animal safari, cowboy town, and hotels and villas.


This article first appeared in The Edge Financial Daily, on March 07, 2014.


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Sunday, 27 April 2014

MRT to generate GNI of between RM3b and RM4b

KUALA LUMPUR: Malaysia’s Mass Rapid Transit (MRT) project looks to generate a gross national income (GNI) of between RM3 billion and RM4 billion per year, said Datuk Sri Sufri Mohd Zin in his speech at the 41st Master Builders Association Malaysia (MBAM) and International Federation of Asian & Western Pacific Contractors’ Association (IFAWPCA) convention from March 2 to 5 in Jakarta, Indonesia.

“The new MRT line is expected to raise property values by an estimated RM300 million in gross development value, broaden house buyers’ choices, expand developers’ projects to new areas, increase pedestrian accessibility and improve amenities [among others],” he added.

The MRT line will significantly improve rail-based public transport in the Klang Valley, and create more than 130,000 jobs in its construction.

The MRT project, one of the largest under the 10th Malaysian Plan, is scheduled for completion by 2017. It will cover 51km and will have 31 stations and three provisional stations for future development.

Sufri, who is MBAM vice-president and IFAWPCA chief delegate said: “Superior and well maintained infrastructure [will] attract the best talent as well as dynamic businesses seeking reliable connectivity and a high [standard] of living for its employees.”

He also urged the government to quickly consider implementing other planned mega infrastructure projects such as the High Speed Rail line to Singapore, and the second and third lines of the MRT to ensure optimum and efficient use of resources.

Sufri advised delegates to disseminate the knowledge gained from the convention to improve service delivery in the construction value chain.

IFAWPCA promotes international fellowship and cooperation, better relationships between governments and contractors in the region, and improved working arrangements in the construction industry.

Among the delegates that attended the convention were senior general manager of the Construction Industry Development Board Malaysia, Megat Kamil Azmi Megat Rus Kamarani, MBAM honorary life president, Tan Sri Dr Yeoh Tiong Lay, president of Persatuan Kontraktor Melayu Malaysia, Datuk Haji Mokhtar Samad and president of Sabah Builders Association Choo Kim Min.


This article first appeared in The Edge Financial Daily, on March 07, 2014.

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Thursday, 24 April 2014

UK apartments to be launched in Kuala Lumpur

KUALA LUMPUR: UK developer English Rose Estate Ltd will be selling its latest premium residential product called Rupert Street to the Malaysian market over this weekend in Kuala Lumpur.

“Rupert Street will appeal to [Malaysian] investors looking for prime, central London Zone 1 locations with the highest specifications and designs,” said Ockert Van Den Berg, the chief executive officer of English Rose Estate.

Rupert Street is in Soho, one of London’s most sought-after locations, and comprises two leasehold buildings offering 11 studio flats, 19 one-bedroom flats and four two-bedroom flats with built-ups of between 118 sq ft and 649 sq ft. Selected apartments offered to the Malaysian public start from £527,100 (RM2.8 million).

All apartments will have fully fitted kitchens with integrated appliances. They will be near public amenities such as world-class restaurants, shopping facilities and lifestyle centres.

They are also near Trafalgar Square, Piccadilly Circus and Leicester Square’s underground station, as well as the University of Central London, the London School of Economics and King’s College. The apartments offer Malaysians a rare opportunity to invest in London property, especially one in Soho, a central location within the city.

Rupert Street is expected to be completed in the first quarter of 2015.

English Rose Estate was established in 2001 and specialises in urban and brownfield regeneration for residential, commercial and mixed-use development and investment schemes. Its assets are in Mayfair, Marylebone and Fitzrovia.

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Wednesday, 23 April 2014

Seaview sets its sights on Iskandar Malaysia, Rapid

JOHOR BARU: Fresh from acquiring 51% of Damansara Realty Bhd, Johor-based Seaview Holdings Sdn Bhd has set its sights on the opportunities present in Iskandar Malaysia and Pengerang.

Its chairman Datuk Daing Abdul Malek Daing Abdul Rahaman said, Seaview was vying to be actively involved in the fast-developing southern economic corridor and the Refinery and Petrochemical Integrated Development (Rapid) in Pengerang.

National oil company, Petroliam Nasional Bhd (Petronas) has committed RM60 billion to develop Rapid.

“Seaview plans to rejuvenate Damansara Realty’s property and construction divisions,” he said in a statement issued after the share sale agreement (SSA) between Seaview and Johor Corp (JCorp) here, yesterday. JCorp was the owner of Damansara Realty before selling its stake to Seaview for RM79 million.

According to Daing Malek, the immediate plan is to further develop the businesses of Damansara, namely the parking business (Metro Parking (M) Sdn Bhd), facilities management (TMR Urusharta (M) Sdn Bhd), hospital consultancy (Healthcare Technical Services Sdn Bhd), and industrial cleaning.

“I strongly believe Damansara Realty has untapped potential for growth and value increment for its shareholders,” he said.

The acquisitions of Damansara Realty shares will trigger a mandatory general offer (MGO), where both parties expect the conditions set out in the SSA to be satisfied within a month, said Damansara Realty in the statement.

“It is the intention of Seaview to maintain listing Damansara Realty upon completion of the MGO and to enhance the value proposition of its investment,” it said. — Bernama


This article first appeared in The Edge Financial Daily, on March 07, 2014.


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Tuesday, 22 April 2014

LBS Bina sticks to affordable, middle-range homes

KUALA LUMPUR: Property developer LBS Bina Group Bhd will continue to focus on the affordable and middle-range residential market this year and in 2015, said managing director Datuk Seri Lim Hock San.

“There is a growing demand from home-occupied buyers and LBS Bina will continue to support the government’s efforts to provide more options for the middle income bracket,” he said in a statement yesterday.

Lim said although the group has expanded into the high-end property sector with its flagship D’Island Residence in Puchong, Selangor, it continues to build affordable homes in the country.

LBS Bina was named “Best Company for Leadership of Property Development” at the 2014 International Alternative Investment Review (IAIR) Awards in Hong Kong recently.

“We take pride in receiving the acclaimed 2014 Best Company for Leadership in the Property Development category for Malaysia. Our aim is to be an internationally recognised developer and we regard this award as a testament from the market that we are on the right track,” said Lim.

He attributed the group’s success to its value proposition in “building inspiring lifestyle spaces that enhance community living”.

“We are not merely building homes, we are building communities,” said Lim.

The IAIR Awards recognise Asian companies based on eight judging criteria. They are sustainability, business results, leaderships in the field, strategic development, high quality of service, innovation in the field, education and green initiatives.

Award recipients were selected by over 50,000 IAIR readers, international teams of journalists and industry leaders through independent nomination questionnaires.

This article first appeared in The Edge Financial Daily, on March 07, 2014.
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Monday, 21 April 2014

City & Country: Big market for building of resorts in Malaysia

MALAYSIA has always been marketed as a travel destination famous for its islands and beaches. Even the government’s Visit Malaysia Year 2014 campaign is promoting them as one of the attractions.

According to Philippe Villeroux, the founder and director of Tropical Area Resort Consultants (TARC), Malaysia is not building resorts fast enough, considering it has a lot more to offer. TARC is a resort design consultancy.

“There are very few resort projects in Malaysia now,” says the Frenchman. “The resort industry is quite slow here.”
He says there are probably many reasons why the resort industry in the east coast is not thriving as much as it should.

“It’s probably due to the monsoon season.” However, he says it isn’t really a major issue.

“I think it’s a mistake because at the end of the day, you still have a nice place to visit and beautiful things to see.

“People generally say it’s going to be seasonal. Look at Koh Samui in Thailand, it has the same climate and season, and people still go there all year round. It’s a shame though, because Redang and Perhentian islands are so much better than Koh Samui.”

The problem, he says, is that Langkawi and other islands in Malaysia rely too much on transfer by boat.

“When you build a resort, you must provide the services as well. That means, if the sea is rough, there must be a way for visitors to reach the islands by other means.”


Building a reputation
Villeroux has 13 years of experience designing resorts in places like Sepang in Malaysia, the Maldives and French Polynesia, and used to work and live in Tahiti.

He was at the REKA Conference in October last year where he shared his knowledge and experience on resort designs in more than 40 remote locations.

He has done design work with Club Med when working at Eric Raffy & Associates. Then, he joined Tropical Architecture, a leading architecture firm in French Polynesia, where he gained extensive knowledge about overwater resorts.

When Tropical Architecture was hit by the global financial crisis in 1998, Villeroux was forced to move back to Tahiti. In 2001, he came back to Malaysia and set up Tropical Area Sdn Bhd, concentrating on resorts in the Maldives, French Polynesia and Southeast Asia.
“I came to Malaysia in the early 1990s to work on a Club Med Cherating renovation project. I was working in French Polynesia at the time. Tahiti is a beautiful place, but it was too far for doing business.”

Villeroux says he fell in love with Malaysia during his journey to Cherating, Pahang, from Kuala Lumpur.

“At the time, there was no highway and the trip just made me fall in love with the rainforest between Pahang and Kuala Lumpur. It’s difficult to explain.”

He has worked on a host of projects in Malaysia, including Sepang Gold Coast in Sepang, Selangor, and Club Med Cherating, Pahang, as well as a few others in Langkawi, Ipoh and Kuala Lumpur.

According to him, his company has 75 projects in Malaysia, both completed and ongoing.

“It’s starting to be a good business for us because we have built a reputation. And it’s purely by word of mouth.”

Villeroux says a resort is the location and the environment, not the buildings.

“People don’t come for the buildings. You go to a resort because of the location, the beaches, the forests and the views.

“Something I learnt while working with Six Senses Hotels Resorts Spas in the Maldives is that the ideal resort is one without buildings. If you have a beautiful island, you only need a building, just a nice place to sleep.”

Today, almost half of TARC’s clients come to them with a parcel of land earmarked for a resort. “We have clients who have land but don’t know what to do with it,” he says.

Despite the good demand for his services, Villeroux never takes on more than four projects at a time.

“My strategy is to stay small. It’s pretty easy to grow the company, but all I want is to maintain a small team of not more than 20 people. We are focusing on quality rather than quantity.”

According to him, TARC wants to improve its products and services. “It’s smaller, so the quality is better. The turnover will grow with the quality of our projects.”

This strategy is also a safety measure in terms of being able to withstand the ups and downs of the market since there are a lot of challenges in this industry, he says.

“We had a project in Lahad Datu that was affected by the intrusion of Sulu gunmen, while a kidnap and murder case happened at another project on Pom Pom island in Sabah. This means that the projects are often halted. We have to be conservative.”

He says most of his projects take eight to 10 years to complete, particularly if there are issues with land rights and design.

Moving ahead
He adds that 2014 is going to be a year of continuity for several of his projects.

“We are in the process of designing two projects in Sabah. We’re also starting the physical work at Ritz Carlton in Langkawi and a project each in the Maldives and Bali.”

In Sabah, Villeroux is looking at smaller projects. Besides the two in hand, Villeroux is expecting to take on another six to seven equally smaller projects. “One of our projects is on Pulau Gaya. The first phase will be a sort of kelong floating around the island, never staying at one spot for more than six months. It’s for people who don’t like making reservations. So we are trying to work with the villagers on the island to sell their produce to the tourists.”

He adds that the kelong project will take a long time to complete as it will have to go through several phases, from design to construction.

However, he says, the state authorities are very helpful. “It’s a matter of explaining and making them understand. Most of the time it’s just respecting the locals and taking into account their needs. This is the balance you have to strike.”

On the challenges he faces in the industry, Villeroux says the time it takes to complete a project is one of them.

“Our projects are usually developed over five to 10 years. During this period, there will be bursts of intense work and long waits. It is quite difficult to have the same focus on the project while having to organise our activities with flexibility.”

TARC also experiences some financial difficulties. According to him, the contract fees may seem promising initially, but will look very small after six years of work, with another two years to go.

“So, you really need to focus on the project and its achievement instead of the financial gain.”

Another challenge is the members of his team. Villeroux says it is difficult to find professionals with long-term commitment and the ability to adapt to different environments.

“Our projects usually seem simple to young architects. However, designing small buildings in natural settings is not as appealing to them as designing a 100-storey tower. In fact, this requires a lot of knowledge, culture and sensitivity.”

Villeroux’s solution to this is to have a small team of key people. Some of his staff have been with him since the establishment of the company.

However, his greatest challenge is aborted projects. “As we usually intervene at the early stages of development, clients sometimes don’t know what they want to do with their investment, so many projects are never completed.”

He says for every project completed, five are stopped at different stages of design. He adds that one client said he would rather spend RM10 million in abortive studies than lose RM50 million in a failed resort.

“It is very difficult to have dreamed of a resort that you always believe will be the best only to realise that it will never happen.

“The ideas we come up with for a particular project are never applied to another. We design based on the site and the type of holiday the resort will provide, so a lot of the solutions are unique. It hurts to see that some of them will never be used.”


This article first appeared in The Edge Malaysia Weekly, on February 14, 2014.


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Sunday, 20 April 2014

Developer marks historic opening

Significant moment: Teh (centre) presenting the mock cheque for their sponsorship to Lim (right) and looking on is Tew.

MAH Sing Group Bhd will be sponsoring RM10,000 worth of The Star in conjunction with the official launch of the second Penang bridge this weekend.

Its chief operating officer Teh Heng Chong said he was proud of their partnership with “The People’s Paper” and the two companies had worked together on many other projects in the past.

“It was an easy decision to work again with The Star for this historic moment in Penang’s history.

“The second Penang bridge will not only ease traffic congestion but also bring new opportunities to Batu Kawan on the mainland and Batu Maung on the island,” said Teh, adding that the airport is also located nearby.

Teh was speaking after presenting a mock cheque for RM10,000 to The Star’s circulation assistant manager Andrew Lim at Wisma Mah Sing, Jalan Sungai Besi yesterday. Also present was Mah Sing’s corporate communications general manager Lyanna Tew.

Mah Sing is developing Loft@Southbay City in Batu Maung, comprising low-density serviced residences, just a stone’s throw from the second bridge.

“The bridge will increase exposure for our projects in Penang.

“Our developments at Southbay City include South City Plaza, terrace houses, commercial centres and bungalow units that are expected to be completed by the end of this year,” said Teh.

Prime Minister Datuk Seri Najib Tun Razak will launch the bridge, the longest in South-East Asia at 24km, at 8pm today.

Mah Sing Group Bhd will set up several booths to showcase their projects at the landing of the bridge in Batu Maung from 11am to midnight today and tomorrow.

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Thursday, 17 April 2014

Luxury development rapidly taking shape in Kuala Lumpur


The interior for one of the show units for The Horizon. – Photos by AZLINA ABDULLAH

A new luxury residential tower will soon grace Jalan Tun Razak in Kuala Lumpur.

The Horizon Residences, developed by Hap Seng Land Sdn Bhd, will feature serviced apartments in two 27-storey towers that sit on 1.35 acres of freehold land.

With a prices from RM1,300 psf, the development offers units with built-up areas ranging between 549sq ft to 2,551sq ft for its typical units, and 3,552sq ft to 4,316sq ft for the penthouses.

Once completed, the 335 units that are semi-furnished, will have easy access to embassies nearby, the Prince Court Medical Centre, an international school, and malls .

According to a news report, Japanese department store operator Takashimaya Co Ltd is said to beconsidering setting up an outlet at the Tun Razak Exchange (TRX), Kuala Lumpur’s upcoming international financial district, which is a stone’s throw from The Horizon Residences development.

Some of the main features of the project include panoramic views of either the Royal Selangor Golf Club, the Kuala Lumpur city skyline or Petronas Twin Towers.

Khor says the project has been drawing the interest of foreign buyers.

David Khor, Hap Seng Land’s chief operating officer, says, currently the apartments have been attracting the interest of both local and foreign buyers.

“The profile of local buyers are aged 40 and up, while smaller units are mostly taken up by young professionals in their 30s.

“We have had Singaporeans, South Koreans and Japanese buying our units,” Khor said, adding that foreign buyers so far are from nine nationalities.

He said approximately 90% of the units have already been sold.

The project, which has a gross development value of RM412mil, features a floating gym, a 50m infinity edge lap pool, a bubble jet pond with stepping stones and a comprehensive three-tier security system.

Each unit is also equipped with double-glazed glass to cut out external noise from traffic.

“This is one of the luxury developmentsbeing worked on by the company. It’s not just a good location but it’s also filled with energy-saving fittings.”” said Khor.

According to Khor, the project is using the Construction Quality Assessment System for , a widely recognised and internationally accepted construction quality assessment system by Singapore’s Building and Construction Authority to measure quality standards in building projects.

The project has also submitted a Green Building Index certification, which is a green rating tool for buildings.

Officially launched in January last year, the project is expected to be completed by March 2015.

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Wednesday, 16 April 2014

Mall project in Johor attracts strong interest

An artist’s impression of Capital 21 development in Iskandar Malaysia.
LAUNCHED in December 2013, Capital 21 @ Capital City, a themed retail development located within Iskandar Malaysia development region in Johor has caught the attention of industry experts with its strong sales since its introduction into the Malaysian property market.

Two months after its official launch, Capital 21 has been drawing strong interest in Johor.

The new retail development comprising 1,200 retail units ranging from 120sq ft to 5,000sq ft, is said to be increasingly in demand among local and foreign investors.

As its name suggests, the themed floors of Capital 21 will feature 21 different “Capitals”. Some of which are country capitals, and others prominent and memorable cities or countries. The 21 capitals are Hawaii, Los Angeles, Switzerland, Las Vegas, Tokyo, Washington DC, Madrid, Paris, Milan, Amsterdam, Stockholm, Athens, Istanbul, Cairo, Dubai, New Delhi, Singapore, Hong Kong, Shanghai, Seoul and Sydney.

Now, not only will shoppers have access to renowned fashion brands and international cuisine, they will also be able to experience the excitement of world cultures in one locale. The ambitious new retail model is the first of its kind in Malaysia.

The Capital 21 development is located in Zone A of Iskandar Malaysia.

For an introduction to the development’s concept, visitors can go to the Capital City Show Gallery located at 1132, Jalan Tampoi, Kawasan Perindustrian Tampoi, Johor Baru.

The gallery offers a glimpse into the actual 360° view and 3D layout of the mall with five featured capitals. Visitors can experience first-hand the lifestyle in Tokyo, the life-size windmill feature from Amsterdam, Hong Kong’s famous street markets, the ski slopes in Switzerland and the vibrancy of Madrid.

As part of a joint-venture initiative between developers, Hatten Group Sdn Bhd, Sunbuild Development Sdn Bhd and contractor, Gadang Holdings Bhd, Capital 21 is just the first phase of the RM2.2bil integrated project named Capital City.

Spread across 14 acres in the increasingly developed area of Iskandar Malaysia, the vast mixed-use development will also house two international hotel blocks and three SOHO towers nestled atop Capital 21’s massive mall platform which offers over 1 million sq ft of retail space.

The unconventional marketing approach to Capital City is also drawing attention.

Instead of introducing the residential phase first to establish a population and consumer base for the retail element, the partners have launched the shopping mall — Capital 21 . The move was initially questioned by critics but the result speaks for itself with high sales figures recorded in just two months. When asked about the sales response achieved for Capital 21, Colin Tan, group managing director of Hatten Group Sdn Bhd,
 attributed the success to the passion and experience of the joint venture partners.

“With our combined expertise in the property industry, we have worked together to design and conceptualise this project and we have the utmost faith in the success of Capital City. We are pleased that the sales figures are reflecting such outstanding public trust and support,” he said.

Siow Chien Fu, group managing director of Sunbuild Development Sdn Bhd, said, “Investors are tapping into the high-potential of Capital 21 not only for its unique, multi-capital mall concept, but also due to its strategic location, its fully-integrated development layout and the surety of a guaranteed 15% rental yield for the first two years.”

Capital 21 is slated to be complete in 2018.

For more information go to www.capitalcity.com.my or call 017 309 1399.


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Tuesday, 15 April 2014

Big plans for Ipoh

An artist’s impression of the new Foo Yet Kai Building and hotel that City Motors Group plans to build in Jalan Sultan Iskandar, Ipoh.
AT AN age when most people are enjoying their retirement, Datuk Dr Foo Wan Kien, 72, is still busy steering his company towards carrying out several mega projects.

His Ipoh-based City Motors Group has in recent months shifted into high gear to change the landscape of its birthplace.

“We are entering a new era as the group celebrates its 50th anniversary this year.

“We will be developing prime land throughout Malaysia and rightfully, we are coming back to Ipoh,” said Foo who owns a range of companies, which he started by selling cars and later by diversifying into the plantation, property development, aquaculture and healthcare sectors.

The group executive chairman said he has not one but five projects, valued between RM100mil and RM200mil, planned for Ipoh.

Wan Kien with material detailing the projects to be undertaken by his group of companies in the near future.
 “Just like the country’s first fire dragon performance, which took place in Ipoh recently and was sponsored by our group, I want to create something for my hometown to help it progress and prosper.

“This is also to enable our children to stay put, and not have to go to the Klang Valley to further their education or to look for jobs,” he said.

Top on Foo’s wish list for Ipoh is to build a new headquarters, replacing the current Foo Yet Kai Building on Jalan Sultan Iskandar in the city centre.

“The new Foo Yet Kai Building will be part of a block of apartments.

“Next to it will be a hotel and if the authorities give the approval, this will become a new landmark for Ipoh.

“There are also plans for a new entertainment outlet to be built across the road, next to SJKC Yuk Choy,” he said.

Foo also excitedly revealed that Ipoh is set to have a new theme park amid a planned resort living development next to the Kek Lok Toong Temple in Gunung Rapat off Jalan Raja Dr Nazrin Shah.

“There will be rope climbing, mountain climbing, boating and lots of other activities for the public.

“It will not be very expensive as we want to ensure that everyone can afford to go on an adventure,” he said.

Also in Gunung Rapat, plans are afoot to set up Ipoh’s first retirement village.
“Surrounded by limestone hills and ponds, it will be a place where the elderly can relax. And with the many activities planned, there is no chance to be bored,” he said.

Like his father, the late tin miner and philanthropist Foo Yet Kai, many of Foo’s efforts are channelled towards charity and helping the local community.

Kinta Medical Centre, the first private hospital in Ipoh, is owned and managed by the group.

“In 1964, my father bought the Chung Thye Phin Villa from the family of the late kapitan and donated the property to The Sister of Franciscan Missionaries for the setting up of a private hospital, then known as Our Lady Hospital.

“In 1983, upon the departure of the nuns, we took over the operations of the hospital and named it the Kinta Medical Centre.

“We will be expanding the hospital. We will be bold by making it a non-profit hospital to help people who cannot afford medical treatment,” said Foo, adding that a medical mall was being built on the hospital grounds at present.

The KMC Medical Mall, he said, would be a one-stop centre offering a health mini market, aesthetic centre, medical equipment store, traditional Chinese medicine centre and consultation suites.

“I will continue to do charity, just like my father.

“I believe that as you make money from society, you should also give some back to it,” said Foo, who is also looking at setting up the Foo Yet Kai Foundation in memory of his father.

The foundation is expected to benefit handsomely from a proposed RM500mil new hotel in Bukit Bintang.

City Motors, through its member company Kenco Properties Sdn Bhd, in a joint venture with Mass Rapid Transit Corp Sdn Bhd, is seeking approval to build a 56-storey, four-star business hotel and suites near the Pavilion Kuala Lumpur.

“If approved, it will be the highest hotel in the Bukit Bintang area with 500 rooms and suites. It will be a trust for my future generations and partly my foundation,” he revealed, adding that plans for a RM30mil business hotel and apartments in Bangsar had also been submitted to the authorities for approval.

Despite his impressive portfolio, which includes business interests throughout Malaysia, Singapore and as far as Hong Kong, the millionaire prefers to maintain a low profile and still enjoys his breakfast of noodles at coffee shops in Ipoh Old Town.

“I am a simple man. I believe that god gave me a good life because I do not fancy fine things.

“Simple things make me happy and I do not care what people say about me. I do what makes me happy as long as I do not hurt anyone,” said Foo.


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Monday, 14 April 2014

Mah Sing Q4 earnings up 27.6% to RM70.7mil

KUALA LUMPUR: Mah Sing Group Bhd’s earnings in the fourth quarter ended Dec 31, 2013, rose 27.6% year-on-year to RM70.7mil from RM55.4mil, matching the 29.2% improvement in revenue.

The quarter’s revenue hit RM570.2mil from RM441.4mil in the corresponding quarter a year earlier.

Profit before tax for the property developer and plastic manufacturer was 26% higher at RM91.1mil, from RM72.3mil previously, and earnings per share inched up to 5.09 sen from 4.98 sen.

The Board of Directors proposed a first and final single-tier dividend of 8 sen per ordinary share of RM0.50 each – subject to approval at the forthcoming AGM.

Earnings for the full year came to RM280.6mil – up 21.7% from RM230.6mil in the previous financial year, as revenue went up 13% to RM2.005bil from RM1.775bil.

Profit before tax improved 17.7% to RM371.5mil from RM315.5mil, and earnings per share for the year came to 21.52 sen from 20.82 sen.

Revenue in 2013 from property development was RM1.7bil against RM1.6bil a year earlier. Operating profit margin was 20.1% compared to 19.4%. The increase in revenue was attributable to the increasing contribution from mixed developments.

According to Mah Sing, sales closed at a high of RM3bil as of Dec 31, 2013, meeting the group’s target, thanks to the increasing number of projects targeting the mid market.

Meanwhile, the plastics segment saw revenue grow by 12.7% to RM235.4 million (2012: RM208.8 million) as a result of higher pallet sales.

On its prospects for 2014, Mah Sing said with its unbilled sales at RM4.4bil, representing 2.6 times of 2013 full year property revenue, it is assured of near-term revenue visibility and steady streams of cash flow and liquidity.

“The fundamentals of property market remain sound underpinned by the young demographics, population growth, stable employment conditions and urbanisation. Overall, the group expects a positive growth prospect for 2014,” it said. 

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Sunday, 13 April 2014

Location, quality to drive GuocoLand’s growth

Tan showing the dining room of a DC Residency show house.

WHILE some developers are rolling out property launches at a slower pace this year, GuocoLand (M) Bhd is not slowing down as it aims to achieve RM2bil gross development value this year.

Managing director Tan Lee Koon tells StarBizWeek the main drivers for the company will be Damansara City at Damansara Heights, Emerald at Rawang, Alam Damai at Cheras and Pantai Sepang Putra.

“It will be a busy year for us. Furthermore, our land is in prime areas so it shouldn’t be much of a concern for us,” he says.

He expects 80% to 85% of the launches to be residential units this year.
To him, location and quality are the key ingredients for good sales.

“Apart from GuocoLand Malaysia’s track record, we will pay greater attention to product differentiation, innovative concept, designs and quality,” he adds.

As the prices in Iskandar Malaysia have gone up a lot, people are starting to see value in the Klang Valley.

“We see buying interest returning to Kuala Lumpur as the price gap between Johor and Kuala Lumpur reduces,” he says, explaining that the population growth in the Klang Valley will generate demand for property.

He also says the company has not encountered issues of tremendous slowdown in sales as most of its customers purchase for own-stay and it does not provide the developer interest bearing scheme which was lifted due to new rulings.

The developer’s outstanding landbank is at a sizeable 10,000 acres, which is enough to keep it busy for a long time. It has 4,760 acres in Sepang, 560 acres in Rawang, 3,870 acres in Jasin, and 46 acres in Alam Damai.

Living room of the show house with drapes.

However, the company is still on the lookout for more land, particularly strategic parcels in the city and large tracts for township development.

It is in the midst of planning the development in Sepang as well as looking for a development concept for the Jasin, Malacca land which is planned this year.

“Some local and foreign investors have approached us so we hope to conclude something this year,” he says without elaborating.

Updating on one of its most exciting projects – the RM2.5bil Damansara City, he says it will sell the residential units but will keep the hospitality, mall and possibly the commercial components.

Asked if there are plans for the office towers to be injected into its sister company, Tower Real Estate Investment Trust, he says there are no definite plans about where to keep the assets but it will be within the Hong Leong group.

The 8.5-acre development started in late-2012 will see DC Residency block A comprising 370 units, the shopping mall, and the 19-storey MSC-status office tower B completed in the first quarter of 2015.

Office tower A will be completed in the second quarter of 2015 and the hotel block, that will be operated by a brand under its parent’s belt The Clermont, will be ready in the fourth quarter of 2015 and expects to open its doors in 2016.

“As construction works at the site is done concurrently, the various components will be ready at about the same time,” he says, adding that it is the sum-of-parts that enhances the value of each property by leaps and bounds.

Residents can request for room service that will be provided by the hotel operator while the residential block will have a concierge.

“Residents at the serviced apartments will be able to enjoy services like hotel guests and the only difference is that they own the unit,” he quips.

Some of the elements of the luxurious residential units include imported and branded fittings, personal lift, integrated smart home system, marble flooring and American oak timber flooring for the rooms.

On top of that, the master bedrooms will feature a walk-in wardrobe and all the toilets have marble finishing up to the ceiling.

Half the buyers for DC Residency are foreigners, of which about half of them are Singaporeans.

He says Damansara City will see some contribution in the financial year ending June 30, 2014 (FY14) and the contribution will be stronger in FY15 and FY16.

Its office suites Commerce One at Old Klang Road, Kuala Lumpur will also contribute to its top and bottom line for FY14.

As for its 1,000-acre township development in Rawang, which has been going on for more than a decade, has also been an important revenue contributor to the property player.

It is launching 74 units under the project known as The Rise, which sits on the highest point in the Emerald 
development, today. It has received overwhelming interest particularly on the zero-lot bungalows.

“Rawang has benefited from rapid development and publicity. A lot of people have chosen to upgrade their homes there,” he says.

Due to the lifestyle and concept it introduces in Rawang, he says houses in Emerald is able to fetch a premium compared to other development.

For its second quarter ended Dec 31, 2013, the company raked in RM59.1mil revenue, 32% higher than the revenue it gained for the same quarter a year earlier.

Net profit, however, declined to RM12.3mil. Its net asset per share for the period was RM1.23.

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Thursday, 10 April 2014

Jump in i-Bhd’s net profit

PETALING JAYA: I-Bhd’s net profit for its fourth quarter ended Dec 31, 2013 surged over 200% to RM29.58mil from RM9.08mil in the previous corresponding period, mainly due to higher profit from ongoing projects in its property development division, as well as fair value gains of RM13mil arising from the revaluation of investment properties held by the group.

Revenue increased to RM55.66mil from RM30.74mil previously.

For the financial year ended Dec 31, 2013 (FY13), meanwhile, net profit rose to RM43.97mil from RM16.82mil in FY12, while revenue jumped to RM152.15mil from RM66.66mil previously.

The company said in a statement yesterday that the revenue increase was mainly due to higher sales from ongoing projects as well as growth in the leisure division.

In the same statement, deputy chairman Datuk Eu Hong Chew said i-Bhd’s property development segment emerged as its biggest contributor, with 62.4% of total revenue.

“The growth of the property development segment is the result of various projects in i-City coming on-stream. In 2012, we launched about RM300mil in gross development value (GDV) worth of projects, while in 2013, the launched GDV was in excess of RM1bil.”

I-Bhd’s ongoing projects are its i-Residence and i-SOVO projects which have been fully sold, as well as its i-SOHO development which was launched in the fourth quarter of 2013. All these developments were located within the vicinity of the i-City ultrapolis in Shah Alam, said the company.

The leisure business division registered a significant 47.3% growth in revenue in FY13.

“Part of this growth came from new attractions such as the Red Carpet@i-City interactive wax museum and House of Horror@i-City that were rolled out in the second half of 2013, while the balance came from increased revenue from existing attractions,” added i-Bhd.

On plans for 2015, Eu said that with RM400mil of unbilled sales as at the end of 2013 and RM1.6bil of launches for 2014, i-Bhd was on target to generate annual revenues of RM500mil for its property development sector over the next two to three years.

“At the same time, there is still another RM4.5bil of development to be launched from the balance of land in i-City,” he said.

“All-in, our balance sheet shows that the group still maintains low gearing, and when our ongoing corporate exercise is completed in the third quarter of 2014, the group will continue to build on its strong financials as it builds up its property investment assets,” said Eu.

I-Bhd’s board has proposed a final single-tier dividend of six sen per share, to be approved at the company’s forthcoming AGM. If approved, the dividend payout will amount to RM6.9mil, or 13% of its FY13 net profit.

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Wednesday, 9 April 2014

Greenland to invest RM3bil in Danga Bay

PETALING JAYA: The Greenland Group, one of China’s biggest state-owned companies, is planning to invest RM3bil in an integrated real estate development project in Danga Bay in Johor.

In a statement yesterday, it said the company chairman, Zhang Yuliang, led a six-member high-powered delegation from its headquarters in Shanghai to finalise a major land deal with Iskandar Waterfront Holdings Sdn Bhd (IWH) for the development.

It said Greenland, which is reportedly keen to acquire around 60ha land in IWH, was expected to formalise the land deal soon.

The high-profile China developer has been on a buying spree in recent years, acquiring big real-estate projects in New York, Los Angeles, Sydney, London and South Korea.

Greenland was ranked 359 in the Fortune Global 500 company survey last year.

“Greenland’s forte is in mixed commercial development, including high-end hotels and residential towers.

“We expect them to bring their expertise and market knowledge to help build world-class waterfront properties in Danga Bay,” said IWH executive director Lim Chen Herng. He said the premier waterfront site had drawn strong interests from major property players from around the world, several of whom had already launched landmark projects here.

“To date 16 local and foreign investors have joined hands with IWH to develop properties with a cumulative gross development value of RM125bil,” said managing director of IWH Tan Sri Lim Kang Hoo.

They include Temasek/CapitaLand, Tune Hotel, Tropicana Corp Bhd, Brunsfield Group, Nam Cheong, Skyfront Holdings, Azea Properties and Centurian Properties.

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Tuesday, 8 April 2014

Budding townships in northern KL are bridging the gap between the outskirts and city


DISTANCE is a matter of perspective.

Over the last decade, townships along the Gutherie Corridor Expressway such as Bandar Baru Sg Buloh, Kota Damansara, Bukit Jelutong, Puncak Alam (and further up, Setia Alam) have developed rapidly.

Further up from Sungai Buloh, a new township – 1,000-acre Bandar Seri Coalfields (BSC) – is being developed by Kuala Lumpur Kepong Bhd (KLK).

The property player has a landbank of 6,000 acres there, 230 acres of which have been developed into the mixed residential and commercial real estate Desa Coalfields, now home to a middle income population of about 10,000 for the last decade.

For the average denizen of Petaling Jaya and surrounding suburbs, to that region – 25-45 minutes depending on traffic – is considered far although it is about the same distance to the city centre.

While most city residents hesitate to venture out from their ties and comforts in established townships, these new developments appeal to denizens from as far as Seremban, who desire to inch towards the city centre. 
 Rather than uprooting the entire clan, many still opt to live on the fringes to be closer to Kuala Lumpur and yet be close enough to their families in the outskirts.

Low density

The development of BSC, which has a freehold land tenure, is still in its infancy.

KLK has planned for 6,000 units of housing and commercial real estate in the township. Some 900 units from phase one were handed over since last May, and 80 units of commercial lots will be handed over by this December.

“We are converting our plantation into residential real estate to meet demand,” KLK general manager P.H. Lim says.

Phase one comprises the following: The Bromelia (22x75ft; 4-bedroom, 4 bathroom; starting at RM310,000) and Duranta (24x75ft; 4-bedroom, 4 bathroom; starting at RM350,000) two-storey link houses; Banyan semi-detached units (6-bedroom, 5 bathroom, starting at RM688,000); Oleander double-storey link villas (24x75ft; 5 bedroom, 4 bathroom; RM468,000); and Areca (22x75ft; 4-bedroom+4bathroom; RM400,000) double-storey courtyard homes – all of which were fully sold within months of being launched in 2011.

Early this year, KLK launched Senna (4-bedroom, 3 bathroom; starting at RM480,000), a precinct of 261 double-storey terrace housing.

While 90% of these were snapped up within four weeks, Banyan II, the second phase of its semi-detached units launched in 2012, lags behind with a mere take-up of 20%.

According to Lim, most who bought into the township were middle-incomed young families and parents investing in a home for their children.

Taking into account most townships’ emphasis on greenery and the correlation between people and their environment of living, KLK is integrating a small park in each housing precinct for leisure and family time.

On a larger scale, there will be the 50-acre central park in the heart of the township, landscaped and equipped with a full-sized football pitch, jogging track, cycling path and other game courts.

Lim says the company is not keen on developing condominiums (apart from low-cost apartments, which are integral in any township planning) so as to keep density low.

Its varied property is meant to cater to a diverse resident mix.

BSC is planned with 50 ft-wide inner roads, which will hopefully alleviate traffic and promote more room for residential parking.

The township will include comprehensive proposed public amenities such as primary and secondary schools, kindergartens, government health clinic, wet market, petrol stations, food courts, police station, community halls, bus terminal, church, mosque and surau.

An existing police beat base, community hall, surau and primary school are available at the neighbouring Desa Coalfields, which can cater to the residents’ needs when they move in this year.

The advantage for BSC is its accessibility via the Guthrie Corridor Expressway and KL-Kuala Selangor Expressway (Latar), FR 54 and the upcoming Damansara-Shah Alam Highway (under construction), which leads directly into the Pencala Link.

“Towns in those areas are slowly but surely coming up,” Lim says. “To the crowd from that end, BSC is not as far as we imagine. You will see a transformation along the Guthrie Corridor within the next two decades.”

Investors should bear in mind that progress, as with any township development, can only be realised over the long term.

“The rate of establishment will depend on the market and economy. In planning Desa Coalfields, we targeted 12 years but it was established within eight years,” he added.

Understanding BSC’s neighbouring environment such as Puncak Alam, Meru and Kuala Selangor can give potential buyers an idea of what to expect in the coming years.

These sleepy towns are still rather slow-moving but developers and real estate agents say that development is underway.

Puncak Alam, a stone’s throw away, caters largely to the UITM II community.

Catalyse growth

Middle and lower-incomed families and campus residents fuel the strips of roadside stalls and shop lots in the vicinity, and there is a Tesco hypermarket in the area that will be able to cater to domestic needs in BSC’s early years.

A community mall for BSC is also in the pipeline, but until then, residents are just a 15-minute drive from the Setia Alam Mall. Plans for outdoor play facilities for children are underway.

Further away, there is also the Waterfront community mall at Desa ParkCity as well as the uncoming commercial area of Arcadia (slated for completion by 2016), a 11.3-acre freehold project comprising four-storey buildings with retail shops, offices and SoHos (small office/home office) units.

These amenities will add to BSC’s accessibility to leisure and lifestyle avenues.

Ultimately and together, these townships catalyse further growth along the Corridor to connect the outskirts to the city.


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