Flyover to boost sales at RM6.3b Tropicana MetroPark

KUALA LUMPUR: Tropicana Corp Bhd is confident of achieving an 80% take-up rate for Tower B of its Paloma Serviced Residences at its RM6.3 billion Tropicana MetroPark development in Subang Jaya, Selangor, thanks to a proposed dedicated flyover that will link the integrated development to the Federal Highway.

Paloma Serviced Residences has a gross development value (GDV) of RM465 million, comprising two residential towers and 20 villas.

Tropicana group chief executive officer Datuk Yau Kok Seng said the RM106 million flyover was conceived as part of its integrated development masterplan.

“Construction of the proposed flyover will begin in the second quarter of this year and will be completed by the second quarter of 2016,” he told reporters after a signing ceremony and the unveiling of Paloma Serviced Residences show units yesterday.

Up to 70% of the construction cost will be funded via borrowings and the rest by internal funds.

“The building of the new flyover does not involve any acquisition [of land]. It’s a collaboration between us and the Subang Jaya Municipal Council,” Yau said.

Pembinaan Jemerlang Sdn Bhd is the appointed contractor for the proposed flyover.

Tropicana marketing and sales executive director Pam Loh said the average selling price of the 248-unit Tower B Paloma Serviced Residences is RM800 per sq ft.

“We have two towers for Paloma Serviced Residences, but we are only launching Tower B for now. We have already registered a 40% take-up rate for Tower B,” said Loh.

Yau said the remaining components of the Paloma Serviced Residences, featuring  over 300 units of serviced residences for Tower A as well as 20 villas, will be launched at an “appropriate time”.

According to Yau, the first phase of the 88-acre (35.6ha) Tropicana MetroPark development named Pandora Serviced Residences has a GDV of RM365 million and is 90% sold. The project was launched on May 31 last year.

With a total built-up area of over 11 million sq ft, Tropicana MetroPark is divided into nine phases — five residential and four commercial.


This article first appeared in The Edge Financial Daily, on April 16, 2014.



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Ong, Wheelock offer to buy S’pore’s Hotel Properties

SINGAPORE: A consortium that includes Singapore tycoon Ong Beng Seng and Wheelock Properties (Singapore) Ltd offered yesterday to buy Hotel Properties Ltd for S$3.50 (RM9.06) per share, valuing the company at around S$1.8 billion.

The move is the latest in a string of acquisitions in Singapore by large shareholders seeking to take advantage of what they see as attractive valuations to gain full control of property assets.

68 Holdings Pte Ltd had agreed to acquire nearly 214 million shares in Hotel Properties, representing a 41.9% stake in the company, at S$3.50 each, according to stock filings from Hotel Properties and Wheelock Properties with the Singapore Exchange. The group plans to make a cash offer for all the remaining shares it does not own.

Shares in Hotel Properties surged as much as 13.1% to S$3.54, their highest point in almost 11 months, while Wheelock Properties jumped 5.4% to S$1.84 in early Singapore trading.

68 Holdings is 60% owned by Cuscaden Partners Pte Ltd, an investment holding company in which Ong, who is also managing director of Hotel Properties, owns a 90% interest while David Ban Song Long owns the rest.

The remaining 40% of 68 Holdings is held by Nassim Developments, a unit of Wheelock Properties. Wheelock Properties is part of Hong Kong-listed Wheelock & Co Ltd.

Ong, Ban and Wheelock have been long-term shareholders of Hotel Properties and have decided to consolidate their shareholding so they can “implement their shared objectives for HPL and to enhance value over time”, according to the filing.

Hotel Properties owns and operates hotels, and has businesses in property development and investment holding. The company has a portfolio of 28 hotels and resorts spread across 13 countries, according to its website.

The Hotel Properties offer comes a day after CapitaLand Ltd , Southeast Asia’s biggest property developer, said it had bid S$3.06 billion to buy out minority shareholders in its 65%-owned CapitaMalls Asia Ltd.


This article first appeared in The Edge Financial Daily, on April 16, 2014.

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Greenland buys land in Danga Bay for RM600m

KUALA LUMPUR: The Greenland Group, one of China’s biggest state-owned developers and a Fortune 500 company, is making its first foray into Malaysia by acquiring a piece of prime waterfront land in Iskandar Malaysia for RM600 million.

The Chinese developer yesterday signed a sale and purchase agreement with Johor-based Iskandar Waterfront Holdings Sdn Bhd (IWH) for the purchase of a 13.96-acre (5.65ha) site in Danga Bay, with the purchase consideration translating into RM986.70 per sq ft (psf).

The site, located close to the Johor Baru city centre, has been earmarked for a “mixed integrated joint venture development with IWH”, said IWH in a statement yesterday.

Without elaborating on the details of the joint venture, IWH said the project has a gross development value (GDV) of RM2.2 billion and will be completed within five years. It is worth noting that Greenland’s land cost of RM600 million accounts for 30% of the RM2.2 billion GDV.

According to the statement, the Shanghai-based group is keen to expand its landbank in Johor and is finalising talks with IWH and its associated companies for two or three more land acquisitions soon.

“This follows a fact-finding visit in late February by a high-powered delegation from the company to explore investment possibilities in the booming southern growth corridor,” said IWH.

Greenland chairman Zhang Yuliang and vice president Xu Jing yesterday signed the land purchase agreement at the company’s corporate headquarters in Shanghai. IWH was represented by its managing director Tan Sri Lim Kang Hoo and group executive director Lim Chen Herng.

Greenland, which was ranked 359 in the Fortune Global 500 company survey last year, has been on a buying spree in recent years, acquiring big real estate projects in New York, Los Angeles, Sydney, London and South Korea.

The company, which is the builder of the world’s tallest residential tower at 131 floors in Wuhan in Hubei Province in China, is also building another iconic 88-storey tower in Nanjing, making it the seventh tallest building in the world.

“We are very happy to forge a partnership with IWH and share ideas on the development of land in Iskandar Malaysia. We believe this investment, by virtue of its strategic location and proximity to Singapore, will offer good returns on our investment.

“We also believe through this joint venture with IWH, both Malaysia and China can reap the benefits of economic cooperation for the mutual benefit of our people,” said Zhang.

IWH plans to leverage on Greenland’s forte in mixed commercial development, including high-end hotels and residential towers, to help transform Danga Bay in Johor into an integrated international waterfront city.

“We believe Greenland Group will pave the way for more China state-owned companies to invest in outstanding property projects in Iskandar Malaysia and IWH’s extensive waterfront landbank in Johor Baru,” said Chen Herng.

IWH, a public-private partnership involving the Johor and federal governments and local investors, is the master developer of some 4,000 acres of waterfront land on the eastern and western sides of the Johor Causeway.


This article first appeared in The Edge Financial Daily, on April 17, 2014.

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Sunway named Builder of the Year

KUALA LUMPUR: Sunway Bhd has been acknowledged as Malaysia’s Builder of the Year by global consulting firm, Frost & Sullivan, under the “Best of the Best” category.

The award recognises companies in regional and global markets for demonstrating outstanding achievement and superior performance in areas such as leadership, technological innovation, customer service and strategic product development.

“It is an honour to receive this award, which came in time for Sunway’s 40th anniversary celebration. I would like to say that Sunway did not make the journey here alone.

“Our people and our communities who have believed in us since we first undertook the transformation of a derelict tin mine 40 years ago to the ever-evolving Sunway Resort City you know today has made all the difference for us,” Sunway Bhd joint managing director (property development division) for Malaysia and Singapore, Serena Cheah, said in a statement yesterday.


This article first appeared in The Edge Financial Daily, on April 17, 2014.

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LBS Bina to launch two projects in Iskandar Malaysia

KUALA LUMPUR: LBS Bina Group Bhd is set to launch two more developments in Iskandar Malaysia, Johor, in a move to tap the red-hot demand for property in the booming economic zone.

The projects will fall into the mid-range segment, said its managing director Datuk Seri Lim Hock San, adding that an announcement will be made in two months.

“I don’t see an oversupply (of properties) in Iskandar Malaysia. If Chinese developers are eagerly tapping the development there, they must have done their homework,” Lim told Bernama during a recent media trip to Cameron Highlands to witness the launch of its first sales gallery there.

“Iskandar Malaysia is being heavily promoted in China and almost everyone there knows this is the place to invest, thanks to its proximity to Singapore,” he said.

The two new projects come on the heels of the company’s February announcement, when it said it was undertaking a mixed development project, consisting of 2,700 residential and commercial properties in Iskandar Malaysia that has an estimated gross development value of RM2 billion.

The bulk of the 2.2ha of land for this project was acquired from the Employees Provident Fund for RM71.82 million.

This eight-year development is expected to commence next year and will target the premium segment.

Lim said Johor is expected to enjoy spillover effects from Singapore, just like Shenzhen in China, which rode on the economic boom of its neighbouring powerhouse, Hong Kong.


This article first appeared in The Edge Financial Daily, on April 17, 2014

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Amcorp to co-invest RM421.2m with HK firms

KUALA LUMPUR: Amcorp Properties Bhd, together with Hong Kong’s Grosvenor Asia-Pacific Ltd and Nan Fung Group, will invest US$130 million (RM421.2 million) in a portfolio of high-end property projects in Tokyo, Japan.

In a filing with Bursa Malaysia yesterday, Amcorp Properties said its wholly-owned subsidiary, Amcorp Far East Ltd, will invest US$50 million in a joint venture (JV) company to pursue its investment there.

Amcorp Far East yesterday entered into a co-investment agreement with Grosvenor and Nan Fung Group, which consists of NRJ Investment Ltd and True Lead Investment Ltd, to invest in a high-end residential real estate development and commercial value-add projects.

Prior to this, the co-investors will procure the incorporation of a JV private limited company in Hong Kong, to be named Grosvenor Development Partnership Ltd (Grosvenor Ltd), for the purpose of the investment. Grosvenor Ltd will be appointed the manager of the JV company to manage and report on its activities.

“Each co-investor’s shareholding interest in the JV shall be based on its capital contributions,” said Amcorp Properties. Amcorp Properties and Grosvenor Asia-Pacific will each hold a 38.5% stake in Grosvenor Ltd, contributing US$50 million each. The remaining 23% will be owned by Nan Fung Group with its contribution at US$30 million (RM97.2 million).

The capital commitment of Amcorp Far East will be funded by advances from Amcorp Properties, internal funds and bank borrowings.

It is worth noting that Hong Kong- based Amcorp Far East is wholly-owned by Mawar Delima (M) Sdn Bhd, which in turn is a wholly-owned subsidiary of Amcorp Properties.

Grosvenor Asia-Pacific is involved in property investment and development, while NRJ and True Lead are part of a privately held group of companies and business interests carrying on the business of property development in China under the business or trade name of Nan Fung.

Amcorp Properties said the co-investment is part of the group’s strategy to diversify its property investment and development portfolio and as an impetus towards its quest to embark on niche developments in high growth international markets.

Its counter climbed to an all-time high of RM1.01 on Tuesday. It closed 1.51% lower at 98 sen yesterday.

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KLCC Property eyes up to RM1b acquisition

KUALA LUMPUR: KLCC Property Holdings Bhd (KLCCP) plans to acquire more assets in Kuala Lumpur’s Golden Triangle this year, after receiving shareholders’ nod to issue new shares of up to 10% of its share capital — to raise up to RM1 billion. Group chief executive officer Datuk Hashim Wahir (pic) said the property developer will scout for prime assets in the Golden Triangle that would optimise shareholder value. “We have sufficient headroom [for more land acquisitions] and we are now open to look at assets that will meet shareholder value accretion in terms of asset value, and that will give us the increase in terms of distribution,” he told reporters after the group’s annual general meeting yesterday. Hashim said the group will have the capacity to fund acquisition of “a single asset of up to RM1 billion”, adding that KLCCP has reduced its gearing to 17% with headroom to borrow up to RM5 billion. Last year, KLCCP undertook a corporate restructuring exercise which involved the restructuring of KLCCP Group into a stapled structure known as KLCC Stapled Group where the existing shares in KLCCP are stapled together with the units in KLCC Real Estate Investment Trust (KLCC REIT) to form the resultant KLCC Stapled Group. On May 9, 2013, KLCC Stapled Group was listed under the REIT sector of the Main Market of Bursa Malaysia as the first-ever syariah stapled REIT structure. The new stapled security structure has promised to pay more than 95% of its distributable income from KLCCP and KLCC REIT as dividends, said Hashim, which brings its total dividend declared for the financial year ended Dec 31, 2013 (FY13) to 28.9 sen. Investors who have been investing in KLCCP stand to receive a net dividend yield of 4.95% for FY13, he added. Following the restructuring exercise, the Petronas Twin Towers, Menara 3 Petronas and Menara ExxonMobil — all of which are wholly owned by Petroliam Nasional Bhd (Petronas) — are now under KLCC REIT, while the remaining assets including Suria KLCC, Menara Dayabumi, Mandarin Oriental Hotel and Lot D1 remain under KLCCP. Hashim said KLCCP is still on the prowl to secure an anchor tenant for Lot D1, which is an undeveloped parcel of land located in the vicinity of the Kuala Lumpur City Centre, covering 5,726 sq m (1.5 acres or 0.61ha) in front of the Mandarin Oriental Hotel. The value of KLCCP’s assets now stands at RM14.1 billion. On plans to refurbish Menara Dayabumi, he said the group is looking to build a 60-storey tower on the site on which a six-storey office and retail podium called City Point is currently situated. Renovation works are expected to commence in the middle of next year, he added, noting that it would take at least four years to complete. This article first appeared in The Edge Financial Daily, on April 18, 2014. For more information on Building and Construction event, please visit www.asiapacificevents.com

MKH launches eight projects worth RM1.6b this year

KAJANG: MKH Bhd will launch eight projects this year, with a gross development value (GDV) of RM1.6 billion. The eight projects are Pelangi Heights in Pajam, Negeri Sembilan; Hillpark Shah Alam in Puncak Alam, Selangor; Kajang Avenue, MKH Avenue 1, MKH Avenue 2 and Saville @ Kajang in Kajang; as well as Hillpark Homes 3 in Semenyih, Selangor; and Saville @ Cheras in Cheras.

According to the group, MKH initially planned to launch only six projects and MKH Avenue 2 and Saville @ Cheras were not included. However, due to the encouraging response to its affordable and mid-range landed residential homes such as Hillpark Shah Alam, Kajang East, Pelangi Heights and commercial development MKH Avenue I in Kajang’s commercial business district in recent months, MKH decided to launch Avenue 2 and Saville @ Cheras.

The group said demand from genuine home buyers and upgraders has been strong with 60% to 100% of units sold within a few weeks of the launch.

MKH managing director Tan Sri Eddy Chen said, “Following the successful launch and positive response to these projects, other residential projects to be launched soon include the affordable landed properties Hillpark 3 in Semenyih and high-rise residential units adjacent to the MRT stations — Saville @ Kajang and — Saville @ Cheras in Kajang and Cheras respectively.

“Enquiries for the three new projects have been very good so far and we expect the project to be sold out at the official launch, which is slated within these few months during our property carnival campaign.”

MKH will showcase all its current, new and future projects in conjunction with the official launch of its property carnival themed “MKH Treasures You”, on Sunday in the Kajang 2 sales office gallery. The nationwide property carnival will be on for six months from March 11 until Aug 30.

“As we value and appreciate our customers, we believe the ‘MKH Treasures You’ property carnival is a great way to reward our customers. The amazing and irresistible RM10 million worth of prizes are up for grabs! Participants will receive unique prizes of investment that can be passed on to future generations, plus  grand prizes including cars and MKH’s signature home,” said Chen.

During the property carnival, customers can choose their dream homes from any of MKH’s signature developments in Kajang and greater Kuala Lumpur. All these projects are located within well-planned infrastructures and matured townships, some of which are within few kilometres of MRT stations.

Pelangi Heights has a GDV of RM198 million, comprising bungalows (RM900,000), semi-detached houses (RM700,000) and 2-storey links (RM450,000) which will be launched in three consecutive quarters from the first quarter (1Q) until 3Q this year. The RM700 million Kajang East will be launched in 1Q.

In 2Q, MKH plans to launch Hillpark Shah Alam, MKH Avenue 1 and Saville @ Kajang, with GDV of RM1.3 billion, RM158 million and RM285 million respectively.

The group plans to launch its RM173 million Hillpark Homes 3 in 3Q.

Its additional projects such as the RM200 million MKH Avenue 2 and RM280 million Saville @ Cheras will be launched in 2Q and 4Q respectively.

For its residential properties, prices start from RM290,000 and RM4.2 million for  commercial projects. However, prices of Saville @ Cheras and MKH Avenue II have yet to be announced.

 

This article first appeared in The Edge Financial Daily, on April 18, 2014.

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Two types of enforcement under the new Strata Management Tribunal

PETALING JAYA: The soon-to-be-implemented Strata Management Tribunal will have two enforcement tools — civil and criminal.

An award of the tribunal can be executed by civil actions such as the seizure and sale of the properties of the judgement debtor in the courts; garnishing the money in the hands of a third party like a bank; a judgement debtor can be made a bankrupt; if it is a company, it could be wound up; and other available remedies.

“The Strata Management Tribunal is set to provide a more flexible, cost-efficient and quicker resolution for strata management issues, which require quick resolutions,” said Yong Yung Choy, past president of the Home Buyers Tribunal for nine years, who had arbitrated many disputes between developers and purchasers in the housing industry.

He was speaking at a seminar at The Real Estate and Housing Developers’ Association (Rehda) Institute.

Yong is also a senior Advocate and Solicitor of the Malaysian Bar and a member of the Malaysian Mediation Centre and the Kuala Lumpur Regional Centre for arbitration.

He emphasised that while the new tribunal may be more flexible, it will have to comply with the fundamental provisions of the Strata Management Act 2013.

The more flexible arrangements of the strata management tribunal are more user friendly compared to court laws. They allow the judge to perform on-site inspections, set the time and place of the proceedings, draw on their own experience and expertise on the subject matter without being bound by the Evidence Act 1950.

“Strata Management is a complicated and technical matter. The tribunal will provide the expertise and specialists,” Yong said.

Former housing and local government minister Datuk Seri Chor Chee Heung said tribunal members will comprise retired judges and lawyers with at least 10 years of experience in the field. They will take turns to sit on the tribunal.

To further enhance efficiency, he said the Commissioner of Buildings (COB) Department in local councils will have a full-time deputy to address problems relating to high-rise buildings.

“The department will also have an additional four to five employees. This is all at the expense of the Federal Government,” Chor said.

The move was introduced as some COBs are also local council presidents or mayors who may not be available to address issues due to their other responsibilities, he said.

According to Yong, the largest monetary value of a dispute permitted under the jurisdiction of the tribunal is RM250,000. Also, cases cannot be filed with courts and the tribunal at the same time. If a case has been filed with a court, it cannot be filed again with the tribunal. If it is already filed with the tribunal, then it must be withdrawn.

People who are eligible to file claims include the developer, purchaser, proprietor including the original proprietor, joint management body, management corporation, subsidiary management corporation, management agent, any person with leave of the strata management tribunal (if the tribunal sees fit) or a COB.

All disputes relating to performance and enforcement of all duties and powers are under the Strata Management Act, while all costs and repairs on a parcel and its common property are subjected to Section 16N(2) of the Housing Development Act 1966. According to the act, claims must be filed within 12 months from the certified completion and compliance, date of expiry of defects during the liability period and date of termination of the sale and purchase agreement.

The tribunal needs to resolve a case within 60 days and to give a reason for the settlement in writing based on the relevant provisions of the Strata Management Act. If the tribunal makes a reference to the High Court, it is bound by the decision of the High Court.

Failure to comply is considered an offence which will result in a fine not exceeding RM250,000 or jail sentence not exceeding three years or both. A further fine of RM5,000 will be imposed for a continuing offence. Prosecution cannot occur without consent from the public prosecutor in writing.

The High Court has the power to review settlements, set them aside or remit back to the tribunal for re-consideration.

This article first appeared in The Edge Financial Daily, on April 18, 2014.

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The Meadow Park achieves 30% take-up rate

KUALA LUMPUR: The Meadow Park development by Everest Mobile Sdn Bhd, a member of Everest Group, has achieved a 30% take-up rate ahead of its launch tomorrow. The development is built on 22.3 acres (9.02ha) of leasehold land in Kampar, Perak. It commands a gross development value of RM160 million and offers 426 units of 4-bedroom and 4-bathroom town villas. Built-ups for the units are 1,080 sq ft with prices of between RM354,888 and RM358,888. Facilities available include a clubhouse, fitness centre, study area, swimming pool and sports activities. It is located five minutes from Universiti Tunku Abdul Rahman. Amenities nearby are Kolej Tunku Abdul Rahman, Giant hypermarket, Hospital Kampar and eateries. Everest will officially launch the development tomorrow and Sunday. It is expected to be completed at end-2016. Everest Mobile has changed its name to Everest Elite Sdn Bhd. The company is involved in property development, construction and land investment. This article first appeared in The Edge Financial Daily, on April 18, 2014. For more information on Building and Construction event, please visit www.asiapacificevents.com

Investment opportunities in areas around new Crossrail stations

PETALING JAYA: The largest infrastructure project since World War Two in London, Crossrail, will see residential properties in areas within key stations outperforming the general prime central market by 6% by 2018 when the stations are completed. Knight Frank’s Asia Pacific Head of Research, Nicholas Holt, revealed this hot investment tip at The Edge Investment Forum on Real Estate 2014 on Saturday, April 19, where he spoke on the topic of “Investing in London – is it too late?” “Crossrail is an East-West railway line of under and over-ground tracks essentially linking Heathrow to Canary Wharf,” he said. “The key stations are Canary Wharf, Whitechapel, Liverpool Street, Farringdon, Tottenham Court Road, Bond Street and Paddington and we’re expecting a 1% outperformance within a 10-minute walk to these stations, and a 1.5% outperformance in the key interchanges of Farringdon and Tottenham Court Road. “If we map the cumulative price growth with our forecast over the next five years, the areas around Crossrail stations are likely to outperform the general prime central London markets by up to 6% by 2018 and possibly more beyond that.” Holt also shared that the London residential market is still strong as demand continues to outstrip supply. He said that according to the 2014 The Wealth Report by Knight Frank, London holds court as a global economic city with leading financial banking institutions, media and technology, and service industries. And he also pointed out that high net worth individuals select London as their city of choice when it comes to children’s education, networking, and financial security and stability. As a result, demand for property in London remains strong. He also revealed that there will not be any oversupply of residential property in the future. The UK government forecast of household growth by 2022 is that an additional 525,000 households will require housing in London. The research data Holt said revealed that “there is a huge shortfall in supply over the next 10 years” with only 277,000 units coming into the market. So what can investors expect moving forward? For 2015, Holt says, the market will go flat, due to the UK general elections, which generally cool the market as people await the outcome of who is selected to government, and also the application of the new capital gains tax on non-residents selling their property. After the elections, Holt believes the market will pick up again. The forum themed 'Buy, Sell or Hold?' was organised by The Edge Malaysia, sponsored by Hong Leong Bank and supported by Sunway Bhd. For the full coverage of The Edge Investment Forum on Real Estate 2014, read the coming April 28 issue of City & Country, the property pullout of The Edge weekly.

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New infrastructure boons for popular property markets

PETALING JAYA: Massive new infrastructure projects are poised to create more investing opportunities in already-popular property markets, according to a presentation by mapmaker Ho Chin Soon. During his presentation at The Edge Investment Forum on Real Estate 2014 on Saturday, April 19, titled “Are there any more hotspots – Where to put your money?” he cited several locations that he believes will be major future hotspots. “For Penang, in the years to come, you should look carefully at Batu Kawan as well as Gurney Drive as there will be possible reclamation projects. In Iskandar Malaysia, they have announced the High Speed Rail (HSR) and the Rapid Transit System (RTS) while in Greater Kuala Lumpur, the centre of gravity is heading south driven by the recently approved mass rapid transit (MRT) line 2, among other new infrastructure works,” said Ho, who is founder and director at property research firm Ho Chin Soon Sdn Bhd. In Penang, Ho noted that in due time, there will be a new highway built in Gurney Drive with land reclamation and new developments to happen near the Gurney roundabout. “Banyan Tree has plans for a resort in Teluk Bahang while in Batu Kawan, there are still a lot of land left for development. Ikea is also entering Batu Kawan while Seri Tanjung Pinang and the Royal Military Air Force base is receiving attention due to the proposed undersea tunnel project.” He also noted that down south, the HSR will create more hotspots starting at Bandar Malaysia with the last stop likely to be Gerbang Nusajaya in Iskandar Malaysia, although plans have yet to be finalised. As for the RTS, all eyes are on Stulang Laut as it has great potential depending on where the Singapore government plans to place the RTS stations, said Ho. He also highlighted Woodlands North as China-based Guangzhou R&F Properties Co Ltd had acquired a 116-acre parcel of land from the Sultan of Johor for RM4.5 billion. “In five years time, the Thomson line will open in Woodlands North, opening up opportunity for a cross border link between Johor Baru and Singapore. Whether it will be an undersea tunnel or above ground has yet to be determined,” he said. Meanwhile, Greater Kuala Lumpur’s  centre of gravity has shifted to the south towards Kinrara Army Camp, spurred by the new Serdang-Kinrara-Putrajaya Expressway (Skip), Kinrara-Damansara Expressway (Kidex), Sungai Besi-Ulu Kelang Elevated Expressway (Suke), and Damansara-Shah Alam Highway (Dash). “Of more importance besides the highways is the MRT. As you all know, real estate prices along the first line, the blue line, have gone up tremendously and last month when they approved the MRT line 2, the market again buzzed with excitement.” “The first station for the blue line starts at Sungai Buloh. It will then pass through Kampung Baru and the city centre on its way to the Tun Razak Exhange. The Kampung Baru development authority has a master plan for what it wants to do and there will be a water feature.” This is the eighth year of the property forum, which was organised by The Edge Malaysia. The forum was sponsored by Hong Leong Bank and supported by Sunway Property. For the full coverage of The Edge Investment Forum on Real Estate 2014, read the coming April 28 issue of City & Country, the property pullout of The Edge weekly. For more information on Building and Construction event, please visit www.asiapacificevents.com

Titijaya, Bina Puri in tie-up

PETALING JAYA: Titijaya Land Bhd and Bina Puri Holdings Bhd are collaborating to develop a mixed residential and commercial strata development in Brickfields, Kuala Lumpur.

In their separate filings with Bursa Malaysia, Titijaya and Bina Puri’s wholly owned subsidiary Bina Puri Construction Sdn Bhd said the project would be undertaken by their joint-venture company, Prosperous 

Hectares Sdn Bhd (PHSB).

PHSB, which is involved in property development, is now the wholly-owned subsidiary of Titijaya.

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Love your neighbours, strata wise

IF you walk into a property showroom today and decided to invest and make a purchase, it is very likely you will be buying yourself a ticket into an experience in “Strata Living”.

A strata property development scheme is no longer a simple tall building with many unit owners sharing the common property; it is also horizontally possible within the ever popular “secured” gated and guarded scheme to even sharing the usage of the building to cover commercial, retail and every other possible element that enhances your urban life style today that focuses on both convenience and connectivity.

Here are three hard facts that you need to deal with:

• The developer will not be managing the strata property forever; the owners need to take full responsibility over the entire building eventually.
• The service charge payable by each unit owner has no buffer and works on a presumption of a 100% prompt payment. Any non-payment is a compromise to the budget to manage the building effectively.
• The building standard and lifespan are not to last the entire tenure of the underlying master title. Wear and tear is to be expected and replacement costs is to be borne from the sinking fund where the sufficiency at the material time is questionable.

The basis of strata living is on self-management and self-sufficiency. It can only function in optimum when all the owners participate. The initial period driven by the developer is meant to be a grace period for the owners to learn the trade in managing their own property. The 2007 legislation in forming the joint management body is the clearest manifestation of such intention.

With the intended issuance of strata title simultaneously with delivery of keys to the units, owners should learn even faster as the concept of joint management will be eliminated effectively and that the owners shall immediately take charge of the strata scheme through the formation of the Management Corp.

While there are developers that are keen to ensure that these strata schemes developed by them to be continuously well maintained as part of the ongoing branding portfolio, the standard of maintenance is essentially in the hand of the owners. Pointing fingers in this regard would still ultimately lead back to the owners. It is the owners’ in-charge and thus it is only wise for the owners to take charge.

Therefore, a key consideration in selecting a strata scheme is always whether it is more likely to be owner-occupied or it is more driven by investors that are keener for gains and returns.

The common presumption is always that the users are likely to participate effectively in the management of the scheme. Passing through the property in the evening with just a few lighted units is certainly not an encouraging sign.

In addition to that, no building is ever built to last forever. The developer delivers the property subject to a defect liability period contractually or imposed by the law and then the longevity of the building is then in the hand of its occupants. There is always an expiry date even with timely services and parts replacement from time to time. Owners need to be prepared for further reinvestment to get the maximum values out from the property.

With the duly passed and yet to be effective Strata Title (Amendment) Act 2013 as well as the Strata Management Act 2013, the legal framework is playing catching up. The practical issue is whether the occupants have the correct attitude and mindset living in a Strata scheme?

For ages, we have practised the concept of “My home, my kingdom” where we have fenced up the boundary of our piece of land and sit on the very throne of our own building that we called “home”. Then few kingdoms grouped up together to form a small community where we usually called “Taman”.

Back then, living in Taman has been harmonious and governed by the voluntary “Rukun Tetangga” as a mean of self-help and cross guarding for community living. Not to forget also the Muhibbah under a subject in school named Civic that tough us how to behave as a citizen of a community which was since then replaced by Moral in year 1989.

There was not much issue of security and sharing of common facilities (even with no form of ownership like a strata scheme) where everyone helped out each other to maintain a peaceful living surrounding.

Strata living however is a different ballgame altogether. It works on the basis of an almost agape concept of “love your neighbours” rather than setting the boundaries of your “kingdom”.

Once you bought into a strata scheme, the involuntary community living starts. Like it or not, you need to work together with your fellow residents and homeowners to make your strata living a success.

Here is the deal: a strata owner is no different from a shareholder of a public listed company. While the legal regime expects a high standard of corporate governance from the management, it can still go haywire without the active participation of its owners. That’s why you better start loving your neighbours and take charge to first and foremost protect the very investment that you live in.

>> Chris Tan is the founder and managing partner of Chur Associates
>> The views expressed are entirely the writer’s own.

 

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Nadayu plans RM1.5bil projects, four in Klang Valley one in Penang

Hamidon (right) talking to homebuyers during the site visit to Nadayu28 condominium.

PETALING JAYA: Nadayu Properties Bhd, which has just completed its privatisation exercise, aims to launch five projects with a combined gross development value (GDV) of RM1.5bil this year.

Executive chairman Hamidon Abdullah said the company had lined up four projects in the Klang Valley and one in Penang to be launched in phases.

“It would be a busy year for us as we will also be focusing to redefine our products,” he told StarBiz after the company’s inaugural homebuyers’ site visit to its Nadayu28 Bandar Sunway on Saturday.

“The competition is getting tough, developers are chasing for buyers, hence that is why our emphasis for this year is to redefine our products as well as keeping a close relationship with our customers,” he said.

He said the site visit for house buyers was part of the company initiatives to understand its customers and to allow housebuyers to provide their feedback on the units constructed.

The niche property developer will be launching Nadayu62 and Nadayu63 in Melawati, Nadayu99 in Cyberjaya, Nadayu290 Bukit Gambir in Penang and the first phase of Areca Contempo Homes, Cyberjaya, this year.

The Areca Contempo Homes is developed by Nadayu’s sister company Areca Properties Sdn Bhd.

All the projects will have an equal mix of landed residential properties and high-rise units, comprising condominiums, serviced apartments and hotel, linked villas and small-office-home-offices (SoHos).

Hamidon said most of the properties weare expected to be priced between RM400,000 and RM600,000.

He noted that while there was a slight slowdown in demand due to various measures introduced by Bank Negara to curb lending to the property sector, the company’s take-up rate remained strong.

“We are a medium-sized developer, hence we are very focus in our delivery,” he said, adding that the company aimed to buy more land in the Klang Valley and Penang next year. It is currently in both of these 

markets.

“We plan to focus on all our projects lined up for this year; only then will we look to expand land bank,” he said.

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New benchmark for office space, Pusat Bandar Damansara at RM1,200 range

The nine office blocks in Pusat Bandar Damansara have been scheduled to be demolished in the third quarter of 2014. Lim owns two pieces of land there.

PETALING JAYA: Datuk Desmond Lim Siew Choon, who is planning to demolish and rebuild a mixed integrated development in Pusat Bandar Damansara (PBD), seems to have set a benchmark for office space in that area at between RM1,000 and RM1,200 per sq ft, sources said. The first phase of the office block is expected to be completed in three to four years.

The 9.58-acre parcel, one of several in that area, is the current site of nine office blocks of six and seven storeys high.

A source said the price range seemed “reasonable” in spite of the oversupply of office space.

Another consultant Siders Sittampalam, managing director of PPC International Sdn Bhd, said a more reasonable range would be RM1,000-RM1,100 per sq ft.

The scenario of Lim setting a benchmark for PBD office space has come about as a result of Impian Ekspresi Sdn Bhd offering to buy out owners of 25 parcels of properties there. Impian Ekspresi, a vehicle

Lim indirectly controls, is the owner and developer of PBD.
Lim, best known for shopping mall Pavilion Kuala Lumpur, is also the executive chairman of Malton Bhd and chairman of Pavilion Reit.

It is believed that a few of the owners are resisting the move while the majority are agreeable, sources said.

Lim has fought a long legal battle with Johor Corp (JCorp) over the prized PBD development.

When it was finally resolved in September 2013, tenants in PBD were given monthly tenancy contracts. The buying-out of the 20 odd owners is seen as the last hurdle to empty the area for demolition works to begin in the third quarter of this year.

The nine blocks will be reduced to rubble on a staggered basis over a period of about one year. Most of the tenants have terminated their contracts. “Tenants have ‘terminated’ the contracts themselves and some of the owners have been paid,” a source said.

Sources said the owners have been offered “less than RM1,000 per sq ft” for their properties.

“They will be able to buy the new units at about the same price they sold their existing parcels as a sort of concession. Any additional space will be sold at between RM1,000 and RM1,200 per sq ft, or the prevalent market rate,” a source said.

Siders said a reasonable rate would be between RM650 and RM700 per sq ft as the buildings are old. It is uncertain if the owners, about 20 of them, were offered the same price for their parcels.

The new mixed integrated development, comprising serviced apartments, offices and a hotel, is expected to be built over a period of five to six years. There is a likelihood some of the offices may be completed earlier, sources said.

Lim paid cash RM500mil and conducted an asset exchange for this 9.58-acre site.

The asset exchange comprised some office space to be built in the new redeveloped PBD and an existing 20-storey commercial office building at V Square@PJ City Centre in Petaling Jaya.

There have been comments by certain parties that Lim got the 9.58 acres at a good price as he did not have to fork out much cash because of the asset exchange whereas he paid a premium for an adjacent parcel of 6.34 acres in the same area last March.

This second parcel is closer to the Bangsar-Jalan Damansara intersection.

Lim bought it via Jendela Mayang Sdn Bhd, a company linked to him. He paid RM450mil for that parcel, or RM1,628 per sq ft. Selangor Properties Bhd (SelProp) was the vendor.

Sources said it was not possible to compare the prices paid for the two pieces of land although they are located in the same area and adjacent to each other because Lim would have to pick up the tab for demolishing the nine structures. The second piece is currently used as a public car park.

Lim is expected to build shopping mall Pavilion 2 on the former car park land and connect it to the Pusat Bandar Damansara MRT station which is currently being built over the Bangsar-Jalan Damansara intersection.

C H Williams, Talhar & Wong managing director Foo Gee Jen said Lim’s interest in PBD was not just about land, although that was an important factor.

“It is about refurbishment, increasing plot ratio and the MRT right at your door step.

“That is what (Desmond) Lim is paying for when he paid a premium for the second piece of land.

“It is about connecting Pavilion KL to Pavilion 2 via 10 minutes by rail and in time to come, his third mall in Bukit Jalil, which will also be connected by rail,” said Foo. “The MRT is the premium which cannot be translated into a per sq ft basis,” Foo said.

He said the beauty of that 9.58 acres is that it is S-shaped. He can demolish all or part of it and do a hybrid but he will have to improve the basement parking, according to Foo.

SelProp built PBD in the 1980s with a plot ratio of four. Lim is expected to increase that to 7.5 or 8.

  

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Talam to get new shareholders

PETALING JAYA: Property developer Talam Transform Bhd is working on a restructuring exercise that will see the emergence of new investors and the exit of its existing largest shareholder – Kumpulan Europlus Bhd (KEuro).

Among the new investors are existing shareholders of Multi Purpose Holdings Bhd (MPHB), which is controlled by Datuk Surin Upatkoon. Surin is already an indirect shareholder of Talam, which was founded 

by Tan Sri Chan Ah Chye (pic inset) , through MWE Bhd

“Some new money will come from the investors as the company undertakes a corporate exercise to beef up its balance sheet. They are investing money because they believe the stock has long-term potential.

“But the new investors will remain as passive shareholders and will not drive operations,” said a source.

Chan is likely to stay on at Talam but his role may be reduced.

Analysts were not too concerned about shareholders of MPHB taking up an interest in Talam. They were more interested in the potential dividend pay-out by MPHB’s listed-subsidiary, MPHB Capital Bhd.

“MPHB Capital recently sold some land, which gave rise to talks of it paying out a special dividend. That is where the attention is now,” said an analyst.

After three consecutive years of making losses, Talam returned to the black in its recent financial year ended Jan 31, 2014.

It posted a full-year net profit of RM9.58mil on revenue of RM171.7mil, mainly due to a RM100.67mil disposal gain of investment properties.

In its filing with Bursa Malaysia, the group said it had completed all unfinished houses and will continue to team up with “reputable corporations” to develop its land bank.

However, it foresees a difficult year ahead due to tougher lending guidelines by Bank Negara as well as increasing construction costs.

KEuro’s impending exit from Talam is not surprising as the company that is managed by its largest shareholder, IJM Corp Bhd, is focussed on implementing the West Coast Expressway.

KEuro needed strong shareholders to undertake the RM6bil 233km highway project, which resulted in the exit of Chan.

In October last year, Chan, together with his wife Puan Sri Thong Nyok Choo, sold a 22.15% stake in KEuro to MWE Holdings Bhd for RM155.8mil.

This transaction paved the way for MWE to becoming the second largest shareholder in KEuro after IJM’s 25.1%.

MWE is another listed company that is controlled by Surin.

Chan’s direct stake in Talam stands at 1.09%, while his indirect stake is through his remaining holdings in KEuro.

Surin’s emergence in Talam in October sent the share price to a 19-month high of 7.5 sen on Oct 16. It then settled at the between 6.5 sen and eight sen range.

A subsidiary of MWE, Pijaya Sdn Bhd, has been nibbling shares of Talam.

On April 14, its shares spiked to a high of 11 sen. Last Friday, it closed at 9.5 sen, 0.5 sen lower than the previous day with 89.26 million shares done.

In the 1990s, Talam was the dominant property developer in Selangor as the company bagged several privatisation projects from the state.

Some attributed this to Chan’s close links with the state government at that time.

However, like most other developers, Talam’s debts piled up and eventually was caught flat-footed during the Asian financial crisis in 1998.

Over-geared and unable to service its loan, Talam was forced to halt some of its half-completed projects.

Although it restructured its debts, Talam could not recover from the crisis.

When it was saddled with thousands of uncompleted houses, IJM Corp stepped in by taking up a stake in KEuro in 2005.

Since then, IJM has been driving KEuro, leaving the running of Talam to Chan and existing management.

Talam has a landbank of some 2,000 acres situated mainly in Cyberjaya, Selayang, Ulu Klang and Bukit Beruntung.

At its AGM in July 2013, Talam said that it was embarking on build-then-sell projects on a smaller scale, to prove that it is able to deliver.

It is calling tenders for its build-then-sell affordable housing project in Puchong, which is expected to commence in the second half of 2014. 

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SINGAPORE: From the second half of this year, the government will make productive technologies like the Prefabricated, Pre-finished Volumetric Construction and Cross Laminated Timber part of tender conditions for certain government land sales sites.

It will also be further raising the minimum buildable design and constructability scores in September this year and then again in September 2015.

These measures to boost construction sector productivity were announced in Parliament on Monday.

Nanyang Technological University (NTU) is building Singapore's first multi-storey development using Prefabricated, Pre-finished Volumetric Construction or PPVC.

Successfully used in the US, UK and Australia, PPVC allows whole apartment-sized units, complete with internal fixtures, to be installed on-site.

The new hostel North Hill, which can house 1,800 students, is expected to be completed in end-2015.

Mr Paul Chain, Chief Executive Officer, NTU Development & Facilities Management, said: "We are expecting 40% of labour savings. We are using a bit more materials, so material cost will be higher, but I think if we control properly, the increase in cost ought to be marginal, should not be more than 5%-10%."

NTU is also adopting another new technology - Cross Laminated Timber - in the construction of its new sports hall.

The engineered timber can be used as structural and non-structural components in a building project.

Responding to Channel NewsAsia's query, the Singapore Civil Defence Force (SCDF) said it supports initiatives aimed at raising construction productivity by leveraging new technologies, such as Cross Laminated Timber (CLT).

The SCDF added that a comprehensive list of fire safety requirements was sent out to the building industry on 6 March to support the request for CLT use in building construction.

It was also announced in Parliament on Monday that developers will be required to use Prefabricated Bathroom Units (PBUs) for all residential government land sales (GLS) sites from the second half of this year.

According to the Building and Construction Authority (BCA), more than 14,000 PBUs have been fully fitted out in factories and assembled on-site and they have been used in over 20 private residential projects since 2005.

The government will also set a minimum percentage of prefab level for industrial GLS sites.

Some concerns among developers in using more prefab components include the transportation of large prefab units to the worksite as well as precast supply.

To address this, BCA will roll out more land tenders to have about 10 integrated construction and precast hubs by 2020.

Together with the firms' precast yards in Malaysia, these are sufficient to meet the rising demand of precast components of the industry in the years ahead, says the government.

BCA's CEO, John Keung, said: "You can do precast manufacturing, you can do a lot of prefabrication work, like building the prefab bathroom, you can use it for storage. It is a very intensive use of land. These are enclosed production space, so you can do two shifts if you want to and that will increase the capacity of production."

BCA will also be gradually raising the minimum buildable design and constructability scores to promote easier-to-build building designs and labour-efficient construction methods.

The tightening of the buildable design score by September 2015 could help to achieve manpower savings of 16% to 22%.

BCA says appropriate enforcement action may be taken against developers whose projects deviate from the approved plan. The authority can issue stop work order for non-compliance.

This is in addition to existing penalties including withholding the temporary occupation permit and a fine of up to S$10,000.

BCA says it will also mandate standard components like various floor heights and doors as well as productive technologies such as dry walls for residential projects in September 2014.

Developers will be required to use drywalls for all internal partition wall except wet areas for residential non-landed projects.

To help companies, the government set up a S$250m Construction Productivity and Capability Fund in 2010.

To date, over S$160m has been committed and the scheme has benefited over 4,000 firms, of which 80% are smaller firms.

Mr Lee Yi Shyan, Senior Minister of State for National Development, said: "We will top up the 5-year Fund with another S$30 million to benefit more companies before it ends in 2015. We will explore a second 5-year tranche of funding later when the first one expires."

Mr Lee said the public sector - which is expected to account for about half of the total projected construction demand in the coming years - can take the lead in adopting productive technologies.

For a start, the Ministry of Health will pilot the PPVC system in a nursing home project.
The government will also review its tender evaluation framework for public sector projects to recognise more productive methods of construction.

Mr Lee said: "We will progressively increase the weightage for the productivity component in the Price-Quality Method (PQM) to favour productive construction designs and methods.

"For the Quality Fee Method (QFM), consultants who adopt more buildable design will similarly be recognised with higher productivity score."

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Avani resort set to change Selangor coastal town into a tourist destination

Avani sets to change the perception of Sepang, turning it into a tourist destination in Selangor

AVANI Sepang Gold Coast Resort is the first of the Minor International Pcl (Mint) venture in Malaysia but the property will not be the last of their investments in this country.
Its owner American-born billionaire William Ellwood Heinecke, who arrived here in his private jet, said he has set his eyes on Malaysia.
“Sepang is a wonderful opportunity and a perfect getaway as a luxury hotel in this region. I believe the resort will attract many tourists,” he said.
He said the hotel’s beautiful architecture reminded him of the Anantara Dubai The Palm Resort and Spa.
“This venture marks an important milestone for the chain in this country,” he added.
The resort, formerly operated as Golden Palm Tree Iconic Resort and Spa, went through a RM15mil refurbishment.
It has 392 contemporary Polynesian-inspired rooms with sea view frontage, five restaurants, a spa, butler service, private buggy and an 840sq metre ballroom, the third largest in Malaysia.
Heinecke, a Thai citizen, who is also Mint chairman and chief executive officer, said the re-branding officially marked the hotel as one of the five hotels managed by Minor Hotel Group’s (MHG).
A signing ceremony, officially appointing MHG to manage the property was witnessed by Tengku Sulaiman Shah, Sepang Goldcoast Group executive president MC Wong, Sepang Goldcoast chairman Yanki Regan, Minor Hotel Group CEO Dhilip Rajakarier and Avani Sepang Goldcoast Resort general manager Thomas Fehlbier.
MHG is a hotel owner, operator and investor. It has over 100 hotels, resorts and serviced suites in operation under Anantara, Avani, Per Aquum, Oaks, Elewana, Marriott, Four Seasons, St Regis and Minor International brands in 14 countries across Asia Pacific, the Middle East, Africa and the Indian Ocean.
Mint focuses on three primary businesses — restaurants, hotels and lifestyle brands distribution. It is one of Asia’s largest restaurant companies with over 1,500 outlets operating in 19 countries under The Pizza Company, Swensen’s, Sizzler, Dairy Queen, Burger King, Thai Express, The Coffee Club, Ribs and Rumps and Riverside brands.

Avani has 392 contemporary Polynesian-inspired rooms with sea view frontage.Avani Sepang Goldcoast Resort general manager Thomas Fehlbier (left) and Heinecke outside their new property in Sepang.

The tycoon, who has more than 45,000 staff under him, credits his success to his great team.
“This success is not mine alone. It’s a great pleasure to work with an excellent team. All my staff is like my children. I make a point to hire executives who are smarter than me and remove mediocre staff. Only then you can see your company grow. Otherwise, the company will shrink,” said this 65-year-old businessman, who is worth US$1bil as of July 2013, according to Forbes’ rich list.
Heinecke founded the Minor Group in l967 and after three decades, it expanded to 30 companies. He has been Mint chairman since 1979.
Since acquiring his first hotel, the Royal Garden Resort in Pattaya in 1978, Mint has grown into one of the largest hospitality and leisure companies in the Asia-Pacific region.
“Running a hotel and a restaurant has similar rewards. It goes back to customers’ satisfaction. I always feel the most rewarding part in this business is staff development. I enjoy seeing how my staff rise from the ranks and become senior executives. It is also exciting to see how I’ve touched so many lives in all my 35 years,” said the bearded Heinecke, who has acquired more than 100 hotels and resorts, 1,300 restaurants and 200 retail-trading outlets.
The pragmatic wealthy man is a firm believer of “it is the people who made the company and not the other way round. I employ people with entrepreneurial skills.”
Despite the success, MINT still tries to meet the growing needs of consumers in Thailand and in 22 markets from Africa to Australia.
Heinecke’s success story began at 18 after he got married to the “right woman”, Kathy Heinecke.

“I made my first million after I got married. I was never the brightest student and I am self-taught. It’s all hard work.
“Everyone is created the same way, it is how we spend our hours that makes us different,” said Heinecke who was born in Virginia and grew up in Hong Kong, Japan and Thailand.
His father, Roy, was a United States diplomat in Asia while his mother, Constance, worked as an Asia correspondent for Time magazine. The family moved to Bangkok 50 years ago.
Like other teenage boys, he loved go-carts, motorbikes and cars but he did not go to college. His break came after he sold newspaper ads and formed his own advertising agency from the living room of his parents’ house.

Avani Sepang has an enchanting view to charm visitors to the resort.

 

When go-cart racing became popular in Thailand, he convinced the Bangkok World editor to give him a weekly go-cart column.
His pay cheque was half of the ads he could sell and after a few months, he was drawing more than most reporters.
To double his income, he began cleaning offices at night, started a professional janitorial service, hired a couple of workers, printed a few dozen cards and eventually set up his first cleaning company, Inter Asian Entrepreneurs.
“I sold ads and worked at my advertising company after I got home. In the evening, I would go around and help my workers cleaned offices,” said Heinecke who has two sons.
With no college background and a very lean financial resources, young Heinecke marched into a lawyer’s office in Bangkok and gave US$1,000 to register two companies, Inter-Asian Enterprise and Inter-Asian Publicity.
The registration fee alone took most of the US$1,200, which he borrowed from a moneylender. He spent the leftover on mops and buckets and a few minutes of airtime on a local radio station.
He sold off Inter-Asian Publicity later to Ogilvy & Mather and founded his first company Minor Holdings at 17.
It is called Minor because he was a teenager when he founded it. By 21, while all his friends graduated from college, he was already a millionaire, a boss to 400 staff and grossed more than US$2.5mil a year which made headlines.

Following the rebranding exercise, the property by the sea is known as Avani Sepang Goldcoast Resort.

 

 

Minor Holdings became The Minor Group over the next four decades, spanning more than 30 companies. In 1991, he gave up his US citizenship for Thai, a decision he never regretted.
At 50, Heinecke was the owner of an extensive business empire and became the most successful foreign businessman in Thailand and one of the most-talked about expatriate entrepreneurs in South-East Asia.
Heineicke, a well-respected figure in the business community in Thailand, was recently honoured with the Asia’s Leading Travel Personality award, for the driving force behind the leading global brands under the Minor Group umbrella.
However, he said he never allowed the millions he has to get to his head.
“I have to thank my strong-willed wife, Kathy who keeps me grounded. She has no qualms telling me to put the garbage out or put the toothpaste cap on.
“So, the 100 hotels don’t get to my head. I have my feet firmly to the ground, in that sense,” said Heinecke whose hobbies include scuba diving, collecting vintage cars, including a 1963 US$3mil Shelby Cobra and a Ferrari, once belonged to Clint Eastwood, luxury motor yachts and private jets like Cessna Citation X.
Heinecke, author of The Entrepreneur: 25 Golden Rules for the Global Business Manager, a best seller that had been translated into a several languages, believes that in a crisis it is better to control the expenses than to slash costs across the board.
“You can make a lot of mistakes and still recover if you run an efficient operation. The entrepreneur who controls his expenses better than his rivals will achieve a competitive advantage, especially when he or she demands the highest standards of quality and service at the same time,” he said.