Phase 1 of US$1.54b Thai mega project launched

BANGKOK: Three Thai developers, Siam Piwat Co Ltd, Magnolia Quality Development Corp Co Ltd and Charoen Pokphand Group Co Ltd have launched the first phase of their joint venture mega mixed development project, Iconsiam. This project is said to be the largest integrated development when fully completed.

Iconsiam’s first phase sits on 20 acres (8.09ha) of land by the Chao Phraya River in Bangkok, which is about 40 minutes from the Suvarnabhumi International Airport. The US$1.54 billion (RM4.93 billion) first phase has a total gross floor area (GFA) of 750,000 sq m. It will comprise two malls, two high-end condominiums and an event park. It will also feature seven precedent-setting attractions called The Seven Wonders at Iconsiam.

“The reason for this development is to enable Thailand to compete with other mega projects in the global arena that will bring recognition to Thailand,” said Siam Piwat chief executive officer Chadatip Chutrakul during the launch of Iconsiam on Tuesday.

“The planning of this mega development was not easy. We have been planning this project for two years with the government, and public and private industries to ensure its smooth progress and success.”

The land area for the development of Iconsiam was originally 16 acres but was increased to 20 acres through acquisitions of surrounding properties. Chadatip said they are looking to acquire more land for further phases of the mega integrated development.

The two retail complexes for Iconsiam’s first phase will comprise one luxury retail experience. Covering 525,000 sq m, the 10-storey retail complexes are situated back-to-back.

“Once the malls are completed, there will be more than 500 shops, 100 restaurants from 30 countries, and many services and products that are going to be available for the first time in Thailand. There are also venues capable of hosting world-class performances and gatherings,” said Chadatip.

The malls are set to be launched in the third week of July and will be ready for lease in October.

The two high-end residential towers at Iconsiam will be 70 and 40 storeys high and they are dubbed as The Magnolias Waterfront Residences at Iconsiam.

The 70-storey condo will contain 379 units with built-ups from 60 sq m to 346 sq m. The 40-storey condo will have 140 units consisting of sky villa and duplex sky villa.

“We have not finalised the built-ups for the 40-storey tower,” said Magnolias Quality Development chief executive officer Tipaporn Chearavanont. No selling price was disclosed and will be revealed at a later date. The Magnolia Waterfront Residences will be launched at end-July, Tipaporn added.

The construction stage for the project started in March 2014 and it is set to be completed in 2017.

Iconsiam will also be accessible via river transportation. The project will have three piers linked to the mall and residential towers and a pier for private yachts.

An artist’s impression of Iconsiam by the Chao Phraya River in Bangkok.

 

 

 

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Bangkok luxury apartments offer 6% annual return over two years

KUALA LUMPUR: Than Living Sathorn-Charoenrat, a luxury condominium development by Siralai Co Ltd in Bangkok’s new central business district, is offering 6% returns per annum for two years. A preview of the project by Knight Frank Malaysia will be held this weekend for interested Malaysian buyers.

According to Siralai chief executive officer Thanyaporn Chansakulporn, the project chalked up sales of RM8 million in May when it was launched in Singapore.

“The positive response to the Than Living launch in Singapore is a direct indication that Thailand still remains a popular property investment hub for foreign buyers despite the country’s political situation,” she said in a statement.

Than Living Sathorn-Charoenrat is located near its namesake main road as well as Chan Road and Rama III Road, Surasak BTS Station, and Charoenrat BRT Station. The condos overlook the Chao Phraya River, and are close to amenities such as Central Plaza Rama III, Asiatique The Riverfront, popular retail outlets, international schools and hospitals.

The RM200 million project will consist of a 36-storey tower comprising 523 units of apartments with built-ups from 312 sq ft to 1,604 sq ft, excluding penthouse units which have built-ups of 2,852 sq ft to 3,057 sq ft.

Apartment types include 1-, 2- and 3-room duplexes, executive 2- and 3-bedroom apartments. Prices start from RM301,700.

Some of its amenities include a private library, gymnasium, multipurpose room for aerobics or yoga classes, parking, and 24-hour security.

Frank Khan, Knight Frank Thailand executive director and head of residential, noted that the current political unrest in Thailand has not permanently affected the property market.

“In the first four to five months the market may have been a little soft but it has vastly improved and is only continuing to do so. Despite the political turmoil, the private sector is still strong and going well. As a matter of fact, cooling measures were introduced as a result of the political unrest to ensure that oversupply does not occur.”

This article first appeared in The Edge Financial Daily, on July 4, 2014.

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Taylor Wimpey launches Paddington Exchange in Kuala Lumpur

KUALA LUMPUR: UK property developer Taylor Wimpey Central London announced the launch of their new scheme Paddington Exchange in Kuala Lumpur in a statement yesterday. The developer is part of Taylor Wimpey plc, one of the UK’s largest residential housebuilders.

“We are delighted to confirm the addition of this fantastic scheme to the Taylor Wimpey Central London portfolio and very much look forward to getting started,” said managing director Ingrid Skinner. “With unparalleled transport connections across London and beyond, the numerous amenities right on the doorstep, this development has so much to offer.”

The development is set to be located in Zone 1, Central London location of Paddington Basin. Paddington Exchange will be in close proximity to Paddington Station and gives easy access to Circle Line, Hammersmith & City Line, Bakerloo and District Lines via Paddington and Edgware Road.

The project will consist of 123 1-, 2- and 3-bedroom apartments. The developers remained tight-lipped about the details of the gross development value and built-up of the units. However, each unit comes with a dedicated external space via a terrace or balcony.

It will also offer facilities such as underground parking, a fully-equipped gym, along with community, retail and business space. An added feature of the development is its modern glass façade that will enable natural sunlight into the property.

Residents can enjoy the surrounding Paddington area, which is home to a number of stylish restaurants and exclusive shopping areas such as Bond Street. Moreover, they can enjoy the nearby recreational spots such as Hyde Park and Regents Park. Other nearby amenities include The Grey Coat Hospital and King Solomon Academy.

To exclusively market Paddington Exchange in Malaysia, C H Williams Talhar & Wong has been appointed the exclusive sales agent .

“We are pleased to announce the sale of this prestigious project in Malaysia” said deputy managing director Danny S K Yeo. “Paddington Exchange presents overseas investors with an exceptional opportunity to purchase within high quality development in an established, Central London Zone 1 location.”

An exhibition of the development will be held at the Westin Hotel Kuala Lumpur over the weekend.

An artist’s impression of Paddington Exchange, which will be in close proximity to Paddington Station.

 

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Sekitar26 Business has achieved 51% take-up since October 2013

PETALING JAYA: The Sekitar26 Business commercial hub in section 26, Shah Alam by Paramount Property (Shah Alam), a division of Paramount Corp Bhd, has seen a 51% take-up rate since its launch in October last year.

Sekitar26 Business has a gross development value (GDV) of RM211 million. It comprises 38 units of 3-storey semi-detached industrial units and a 3-storey detached industrial unit, on 13.2 acres (5.34ha) of freehold land. This commercial hub is the first phase of a wider development called Sekitar26.

“Sekitar26 Business has received positive feedback since its launch of 38-units of 3-storey semi-detached industrial units in October last year with 20 units being sold,” said Beh Chun Chong, deputy chief executive officer, Paramount Property Development.

Built up of units range from 8,689 sq ft to 8,704 sq ft while land dimensions for the units range from 65ft by 155ft to 88ft by 155ft. Prices per unit start from RM5,732,000 or RM570 psf. Paramount is banking on the ready catchment available in section 26 and sees it as a thriving place for business and a vibrant destination for leisure.

“The buyer mix consists of end-users and investors, with the majority of them being end-users who currently have businesses in nearby areas such as Puchong, USJ, Shah Alam and Kota Kemuning. These end-user buyers cited the strategic location with freehold status, easy accessibility, practical designs and soundness of Paramount’s reputation as reasons for choosing the development.

“The buyers will be bringing their current businesses to Sekitar26 Business. The business mix consists of trading businesses, agricultural trading, car showrooms, and furniture showrooms,” he said. “With buyers’ profiles consisting of serious buyers who purchase for their own business use, we are not relying so much on an investor market.”

These industrial units have a full glass frontage ideal for branded signature offices, showrooms and warehouses, according to Beh. Sekitar26 Business is scheduled for completion in the fourth quarter of 2016.

This article first appeared in The Edge Financial Daily, on July 4, 2014.
  
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De Centrum Unipark enjoys take-up rate of more than 50%

KAJANG: De Centrum Unipark Condominium, a freehold residential development in Kajang by Protasco Bhd, achieved a take-up rate of more than 50% in pre-sales since it started selling on June 28, according to group managing director Datuk Seri Chong Ket Pen at the unveiling of the condominium on Monday.


“Most of the buyers were first and second home-buyers,” he said. “We are contemplating to keep one block for ourselves to rent out just to students, but the demand for it is incredibly high and buyers are pressuring us to release it for sale.”  

The RM225 million De Centrum Unipark Condominium will comprise two 20-storey towers with a total of 240 single, 4-bedroom units and 80 duplex, 8-bedroom units. The built-ups are 1,297 sq ft and 2, 594 sq ft respectively.

The price of the single units starts from RM575,400 while that of the duplex units begins at RM1,064,950. “We geared it more towards students and families who wish to stay in this area, which explains our competitive pricing,” said Chong.

De Centrum Unipark will be located a short distance from the Infrastructure University of Kuala Lumpur (IUKL), where more than 4,000 students are enrolled, and is surrounded by three universities within the area with over 15,000 students.

“If you were to rent out to students, you could easily get about RM700 per room. The rooms are large enough to fit two beds so you could opt to charge RM500 per person, making it a total of RM1,000 per room,” said Luis Pazos, project communication consultant of the property development division.

Located at the intersection of the North-South Highway, South Klang Valley Expressway and Silk Highway, it allows for easy accessibility through an upcoming MRT station approximately 500 metres from De Centrum, as well as proposed walkways within the master plan itself.

Every bedroom in the condominium will be ensuite and each unit will be equipped with one designated parking bay. Duplex units have two car park bays, but residents will have the option to purchase an additional one at a cost of RM15,000. There will be a total of 500 parking bays.

Safety measures have been thoroughly taken into consideration with a new three-tier security system. Facilities will include a gym, swimming pool, and tennis and badminton courts.

The condominium will be a five-minute walk to De Centrum City Mall, a three-storey retail mall with a net lettable area of 150,000 sq ft.

The De Centrum Unipark Condominium is part of Phase 2 of Protasco’s 100-acre (40.5ha) De Centrum City in Kajang, which also includes a hotel, sports complex and stadium, and offices. The condominium is expected to be completed in December 2016.

“In 2013, our profit growth was about 23%,” said Chong. “So we hope that contribution from property to the overall group profit growth will grow from our 5% last year to 10% this year. By the time De Centrum City is completed, we hope property would’ve contributed to at least 25% of the overall profit, as we consider property and construction to be the main drivers of the profit growth.”

Chong (left), with his son Kenny, has the condo units priced competitively to interest their target market of students and families who wish to stay in Kajang

 
This article first appeared in The Edge Financial Daily, on July 4, 2014.

Landmarks ready for the limelight

KUALA LUMPUR: Having kept a low profile since the acquisition of 338ha of resort development land on Bintan Island, Indonesia for RM769.12 million in 2008, Landmarks Bhd is now ready to step back into the limelight with the unveiling of Phase 1 of the integrated resort development known as Treasure Bay Bintan, which has a gross development value of US$650 million (RM2.08 billion).

Landmarks chief operating officer (COO) Fong Chee Khuen told The Edge Financial Daily that the initial facilities within Phase 1 of the development called Chill Cove include a RM65 million clearwater lagoon and a hotel featuring 40 chalet-like tents. These two facilities will be open for operations in the last quarter of this year.

By 2016, Landmarks will have fully developed the 90ha piece of land that has been allocated for Phase 1 which will include a wellness resort operated by well-known US spa operator Canyon Ranch, entertainment areas, bars, restaurants, aquatic sports facilities, retail areas, and at least eight hotels.

It has taken years for the Treasure Bay Bintan development to take shape.

Asked why, Fong said: “We do not want to be (just) another developer who builds the hardware. We actually spent a lot of time to study the market.”

Paul JH Leong, COO of the Treasure Bay Bintan, concurred.

“It has taken us a bit of time to analyse and then to react to make sure that Bintan has the right offering in terms of new products, features, games, food and beverage, and retail,” he said.

For one, instead of rolling out another typical property development and anchoring itself on property sales, Landmarks had opted to differentiate itself by offering health and wellness themed resorts to travellers by establishing joint ventures with international brands to drive visitor arrivals.

However, Leong said the group will now be more forthcoming about its Treasure Bay Bintan venture now that the development plans are “a bit more firm” and investors can expect future announcements on “who the hotel operators” and “joint venture (JV) partners” are.

To drive this development, Leong said there is no need for Landmarks, which is in net cash position, to raise additional funds as the group’s balance sheet has been managed carefully.  As at Dec 31, 2013, the group’s cash stood at RM115.4 million, while its borrowings stood at RM88.5 million.

Fong said Landmarks has to date secured hotel management contracts with international hotel brands such as Ibis Budget and Mercure and is now in advanced discussion with several five-star international hotel brands for management contracts.

Fong says completion of Phase 1 will add an additional 1,500 rooms to Bintan island

Fong said the completion of Phase 1 of Treasure Bay Bintan will add an additional 1,500 rooms to Bintan island’s existing 1,375 which will help solve the current shortage in hotel room supply. This bodes well for Landmarks as Bintan island now commands room rates from as low as S$160 (RM410) to S$1,000 a night and enjoys a healthy average occupancy rate of 65%. “We need to compete with the likes of Bali, Phuket and to a certain extent Langkawi. For us to compete, Bintan has to offer enough rooms and enough scale for it to hold a major convention … We reckon that 5,000 rooms are at least a (good) starting number for the island to have to become a premier tourist destination,” Fong added. Meanwhile, in a filing with Bursa Malaysia yesterday, Landmarks announced that its unit PT Treasure Development Services (PT TDS) has teamed up with Indonesia’s PT Ekasurya Mandiri (PT EM) to set up a concrete batching plant on Bintan island to supply concrete for the development of Treasure Bay Bintan, or to such other places in Indonesia as may be efficacious. Under the deal, a joint venture entity named PT Pesona Lagoi Mandiri (PT PLM) will be formed to undertake the business of producing and supplying ready mix and dry mix concrete and mortar for use in construction works. PT TDS will have a 51% stake in the JV firm, while PT EM will hold the remaining 49%. “The intended paid-up capital of PT PLM is 10 billion rupiah (RM2.68 million),” said Landmarks. “The construction of the resort destination will require large amounts of concrete and the JV will ensure that the group will have adequate, timely and cost effective access to the construction material, tapping on the experience and expertise of a proven supplier,” it added. Shares in Landmarks closed two sen or 1.82% at RM1.12 yesterday, giving it a market capitalisation of RM538.5 million. This article first appeared in The Edge Financial Daily, on July 4, 2014. For more information on Building and Construction seminars, please visit www.asiapacificevents.com

Sime Darby unlocking asset value through land sale

Sime Darby Bhd
(July 7, RM9.66)
Upgrade to outperform with target price of RM10.50: Sime Darby has announced that it is selling its freehold land in Sungai Buloh, Selangor for RM239.8 million to Eastern & Oriental Bhd (E&O). The 135-acre (54.6ha) tract will be carved out from the current 843 acres land owned by Sime Darby Elmina Development Sdn Bhd.

Currently, the land is meant for plantation purposes but Sime Darby will procure the relevant approval to convert its status to residential and commercial.

We gather that the land price of RM239.8 million includes RM192.8 million as cost of the land and RM47 million as cost of the major infrastructure.

Note that Sime Darby needs to construct the infrastructure (drains, main roads, incoming water and sewerage reticulation pipes, electricity and telecommunications cables) within 36 months.

The agreement between Sime Darby and E&O also states that the baseline gross development value (GDV) for the project is RM1.54 billion. If the actual GDV exceeds RM1.54 billion, Sime Darby is still entitled to 20% profit sharing on any GDV above the baseline GDV.

The deal is only expected to be completed in the first quarter of calendar year 2019 as it will take time for Sime Darby to get the land title converted and construct the infrastructure.

The deal is justified because it will enhance the combined branding and value of Sime Darby’s City of Elmina project, also located in Sungai Buloh.

Separately, The Wall Street Journal reported, quoting “people familiar with the process”, that Sime Darby had invited banks to pitch for a mandate to advise it on an initial public offering (IPO) of its automobile business, which is likely to raise about US$500 million (RM1.6 billion).

The Sungai Buloh land valuation works out to RM33 per sq ft (psf). We think this pricing fair as it is close to the current asking price of RM35 psf for nearby tracts of land. We are positive on this sale as it enables Sime Darby to unlock the value of its land bank while keeping the option to enjoy the upside of the project should the GDV exceed RM1.54 billion. Additionally, Sime Darby can still benefit through its 22% associate stake in E&O.

We believe that the sale of the land is targeted at realising the value of its property assets. In the mid term, we expect more corporate exercises involving Sime Darby’s property division and this could include a reverse takeover, merger and acquisition or even acquiring a real estate investment trust (REIT). There was speculation by the media that Sime Darby is looking to acquire a REIT into which it injects its commercial properties. Regardless of the eventual method Sime Darby chooses to realise the hidden value in its property division, we believe the group is now in the stage of unlocking the hidden value of most of its non-plantation divisions which we believe has caused its valuation to stay low against its peers.

In the past three months, Sime Darby has proposed four deals, all of which were related to the sale or reduction of its stake in its non-plantation divisions. If market talk of the motor division’s IPO materialises, it may be the fifth such deal.

We are positive about this direction as it should allow Sime Darby to emerge from the current value trap of being a conglomerate which usually commands lower price-earnings valuation (against pure plantation companies). — Kenanga Research, July 7


This article first appeared in The Edge Financial Daily, on July 8, 2014.

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Ascott REIT to acquire three accretive assets in Malaysia, China for S$173.9m

SINGAPORE: Ascott Residence Trust (Ascott REIT) has entered into conditional agreements to acquire its first serviced residence in Kuala Lumpur as well as Wuhan and Xi’an in China. The total property value of the acquisition is S$173.9 million (RM445 million).

Ascott REIT will acquire the 207-unit Somerset Ampang Kuala Lumpur from The Ascott Ltd (Ascott) for RM175 million.

It will also acquire the 249-unit Citadines Zhuankou Wuhan and the 251-unit Citadines Gaoxin Xi’an for 252 million yuan (RM129 million) and 270 million yuan, respectively, from Ascott Serviced Residence (China) Fund.

The three serviced residences will continue to be managed by Ascott.

Commenting on the acquisition, Ascott Residence Trust Management Ltd (ARTML) chairman Lim Jit Poh said it was their first acquisition of a serviced residence in Malaysia, which has a stable and growing economy.

“The acquisition of the two properties in Wuhan and Xi’an will further expand our presence in China. Many multinational corporations have established offices in Malaysia, increasing foreign direct investment by 25%, year-on-year, to a record RM38.8 billion in 2013.

“This trend is expected to gain momentum given the government’s pro-business policies to make Malaysia a business and investment-friendly destination.

“Demand for serviced residences in China remains strong due to the continual influx of multinational companies and increasing domestic and international business travel,” Lim said in a statement.

ARTML chief executive officer Ronald Tay said Kuala Lumpur is a key commercial centre and a gateway to Malaysia for international travellers.

“The government is positioning the city as a leading destination in Asia for meetings, conferences and exhibitions having secured many international events.

“Kuala Lumpur’s modern infrastructure, quality facilities and competitive business costs will continue to attract multinational companies to set up businesses in the city and drive demand from expatriates and travellers for serviced residences,” he said.

Ascott REIT will have close to 10,000 apartment units after the acquisition of the three high-quality assets which will expand Ascott REIT’s asset size to S$4 billion.  — Bernama

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Fajarbaru buys three tracts in Australia

KUALA LUMPUR: Fajarbaru Builder Group Bhd (FBG) has acquired three pieces of land in Australia for A$6.9 million (RM20.6 million) cash through its indirect unit, Fajarbaru-Beulah Melbourne Pty Ltd. FBG said the acquisition was to add land bank to its property development division. “The property development to be undertaken on the said land is expected to provide FBG with a new source of income,” said the construction outfit in a filing with Bursa Malaysia yesterday. It said the acquisition is expected to be completed by the third quarter of 2014. It added that the acquisition would not have any material impact on the earnings and earnings per share or net assets of the group. This article first appeared in The Edge Financial Daily, on July 8, 2014. For more information on Building and Construction seminars, please visit www.asiapacificevents.com

Rehda concerned over impact of tax on housing affordability

KUALA LUMPUR: The Real Estate and Housing Developers’ Association (Rehda) is concerned over the impact that the implementation of the goods and services tax (GST) will have on the affordability of housing here.

Hence, it has submitted a list of proposals to the finance ministry on possible ways to minimise the impact of the GST so as not to put “property developers and ultimately housebuyers at a major disadvantage”, said its immediate past president and patron, Datuk Ng Seing Liong.

He revealed this during a session titled “Impact of GST on Property-related Industries” at the National GST Conference 2014, yesterday.

While Rehda remains supportive of the government’s initiative, he said there are a number of issues that the industry is facing, especially on keeping affordable housing “affordably priced”.

Affordable housing refers to residential properties with a selling price of not more than RM400,000.

Some of the proposals Rehda has submitted are: the provision of a fixed allocation for residential input tax credits for mixed developments, a GST zero-rating to major cost components, the rationalisation of stamp duty on the transfer of real properties, and a GST relief order for affordable housing.

Ng said if the relief order was applied, developers can then claim full tax input credits. Presently, it is not allowed as residential property is considered tax-exempt.

“This will mitigate the increased cost for affordable housing and provide status quo opportunities to target groups to buy properties which are comparable [to those] in the pre-GST regime.

“It is better to make it zero-rated so that we, developers, don’t have to pass back the cost burden to consumers,” he added.

Currently, 55% property development costs are classified as construction costs which include construction components such as concrete and bricks.


This article first appeared in The Edge Financial Daily, on July 11, 2014.



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Eco World, a property mover and shaker

Eco World Development Group Bhd
(July 10, RM5.18)
Maintain add with target price of RM8.15: We cut our financial year 2014 ending Sept 30 (FY14) earnings per share forecast by 55% to factor in the absence of launches from existing projects but we retain our FY15 and FY16 numbers. Our implied target price (still based on parity with revised net asset value [RNAV]) rises after revising its RNAV for the surplus value from its new land bank in Semenyih. Eco World remains an “add” and one of our top sector picks, with its asset injection exercise and land banking being the key catalysts.

We estimate that Eco World’s four projects will boost group gross development value by around RM20 billion to nearly RM63 billion. This will put Eco World behind only UEM Sunrise Bhd and S P Setia Bhd.

Since our initiation of coverage on Eco World, we have had to explain to investors that Eco World is neither a low price-earnings ratio nor high yield play. Instead, the company is an RNAV and newsflow play. We expect Eco World to replicate S P Setia’s sterling 20-year track record, but within a much shorter period as it is in a hurry to build scale and size. — CIMB Research, July 9

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Sunway Geo Residences 2 preview draws good response

PETALING JAYA: Sunway Bhd’s public preview of its Sunway Geo Residences 2 show unit has drawn more than 900 registrations of interest for the available 318 units. More than 1,000 people came for the unveiling late last month.

The project is part of the 23.4-acre (9.47ha) integrated Sunway Geo development, which has a gross development value (GDV) of RM2 billion. Previous launches include retail shops, flexi suites, serviced apartments and residences. It is located in the education and healthcare precinct of Sunway Resort City (SRC).

Sunway Geo Residences 2 offers units with built-ups ranging from 654 sq ft to 1,055 sq ft. Some units will have an unobstructed view of the Sunway South Quay lake and Sunway Lagoon. Selling prices start from RM650,000 or RM1,000 per sq ft (psf).

One of the factors that attracted property purchasers to the development is Malaysia’s first Elevated Bus Rapid Transit (BRT) — Sunway Line — which will have direct connection to Sunway Geo and which is expected to be completed in early 2015, said Ong Ghee Bin, Sunway property development division (central region) executive director in a press release recently.

“The BRT electric bus is set to change the landscape of SRC. It will reduce traffic congestion and provide the public with an eco-friendly and time-efficient transportation. In addition to that, the expansion of Sunway University and Sunway Medical Centre will provide residents and visitors of this area an expanded opportunity for learning and added services of healthcare.

“Integrating all these components together will be the expansion of the Canopy Walk. Buyers can look forward to the completion of these five game changers in the next few years, contributing to capital appreciation and connectivity of the area,” said Ong

The 5.4km Sunway Line will connect to the USJ 6 LRT station, which is currently under construction, and to the existing Setia Jaya KTM station.

Residents will also have access to over 200 retail outlets and over 600 office suites which are set to be completed in 2017. Other amenities include an aqua gym, a swimming pool and jacuzzi, all of which will be facing the lake.

New developments such as Sunway University’s new academic building, which is set to be completed by 2015, as well as Sunway Medical Centre’s expansion plan to construct a new block are set to increase the convenience for the community in SRC.

Sunway Geo will also be secured by Sunway’s own security team and CCTV under its Safe City Initiative.

“Facilities and amenities are all located within a short distance away. Sunway Geo will benefit from the integrated components of SRC. The BRT and canopied walkway will connect Sunway Geo to other components in SRC, namely retail, residences, offices, hospitality, and leisure,” said Ong. 

More than 1.000 people came for the unveiling of the Sunway Geo Residences 2 show unit.

 

 

This article first appeared in The Edge Financial Daily, on July 11, 2014.

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Emerging markets propel Westin brand’s global growth

STAMFORD (Connecticut): Emerging markets now account for nearly 70% of Westin development pipeline, according to Starwood Hotels & Resort Worldwide Inc.

The demand is fuelled by accelerating demand in China and India, where rising wealth and rapid urbanisation have generated a fierce appetite for strong global brands, said Simon Turner, president of Starwood Global Development in a press statement recently.

“The opening of The Westin Chongqing marks the Westin brand’s debut in this important economic hub in southwest China and offers travellers an ideal location in the city’s central business district,” said Turner.

Westin Chongqing is located in Chongqing Liberation Square in Chongqing, China.

Starwood expects the Westin portfolio in China to surpass 20 hotels including debuts in several other new markets, such as Zhujiajian in Zhoushan, Qingshui Bay and Haikou in Hainan by year-end. The Westin portfolio in China will see an increase of almost 50% with 11 new hotels.

The Westin will also open The Westin Delhi North Capital Region Noida next year, on track with its aim to increase its portfolio in India by 50%.

The group is expected to open nine new Westin hotels worldwide in 2014 and another 30 by the end of 2016, with almost half of the new hotels in Westin’s fastest-growing region, the Asia Pacific.

“The Westin brand has built a strong foundation and following in established markets over the last decade, and the fact that we have opened our 200thWestin in China is illustrative of the phenomenal demand we are now experiencing in the Asia Pacific, as well as our strong local teams in dynamic markets worldwide,” added Turner.

Starwood is also looking to expand in Indonesia from one to three hotels in the next two years. Westin Ubud Resort & Spa is set to open in Bali later this year and the brand will debut The Westin Jakarta next year.

Westin will also continue to reignite in markets across the Asia Pacific with the brand’s return to Singapore last November after a 12-year absence and is looking to re-enter the Philippines in 2016.

In the Middle East, Westin is expanding rapidly and will triple its portfolio by 2016 with the addition of five new hotels in markets including Saudi Arabia, Jordan and the United Arab Emirates.


This article first appeared in The Edge Financial Daily, on July 11, 2014.

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WB Land to launch phase 2 of Frontier Industrial Park

Wong (left) and Woon standing in front of a model of the Frontier Industrial Park.

JOHOR BARU: WB Land Sdn Bhd will launch the second phase — Frontier 2 — of its maiden project, Frontier Industrial Park on July 19. The launch will be officiated by Johor Menteri Besar, Datuk Seri Mohamed Khaled Nordin.

“We are excited and grateful that the Menteri Besar will grace our launch next week and we are happy that Frontier has done Johor proud,” said WB Land general manager and director Wong Yen Yap in a press statement recently.

Frontier Industrial Park has also won the “Five-Star Best-in-Malaysia” award for industrial development at the recent Asia Pacific Property Awards (APPA) 2014. Frontier Industrial Park sits on 136 acres (55ha) freehold land in Taman Desa Cemerland in Ulu Tiram, Johor, and has a gross development value (GDV) of RM600 million.

The RM354 million Frontier 2 spans 62 acres and encompasses 86 semi-detached units and six detached units. The built-ups for the semi-detached units are from 7,008 sq ft to 13,395 sq ft while the built-ups for its detached units are between 23,409 sq ft and 65,156 sq ft. The units are priced from RM2.2 million to RM9 million.

“Frontier 2 epitomises a ‘green home’ for industries and its location, within the matured industrial area of Ulu Tiram, enhances its appeal to industries in Johor and nearby Singapore,” said WB Land head of marketing, Kevin Woon.

“We further challenged the norms of factory design by providing a dormitory for workers so buyers do not have to worry where to house their workers. Our buyers particularly love this. The secured workers’ dormitory would be ready in the first quarter of 2016.”

The second phase is expected to be completed in the fourth quarter of 2015.

Frontier 2, in Ulu Tiram, is within Iskandar Malaysia and it is only 15 minutes to Johor Port, 25 minutes to Woodlands checkpoint and 30 minutes to Senai Airport.

“We have taken the bold decision to offer a centrally-located park complete with a gym, jogging tracks and pavilions as we want to give better value to our buyers who are looking for more than just factories to work in.

“With greater emphasis to work-life balance and healthy living in today’s society, we are certain our buyers will appreciate these features,” Woon added.

WB Land Sdn Bhd is the property arm of Woon Brothers Construction Sdn Bhd, which has a 38-year track record.

An artist’s impression of the largest semi-detached unit for Frontier Industrial Park.

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‘Demerger of property unit a boon for IOI Corp’

KUALA LUMPUR: Six months after the completion of the demerger of IOI Corp Bhd’s property business, its shareholders are still enjoying the benefits of the corporate exercise.

“Despite having lower earnings due to the loss of property income upon the demerger, cash flow has improved significantly as it no longer needs to consistently allocate capex (capital expenditure) to its property division,” Kenanga Research senior research analyst Alan Lim Seong Chun told The Edge Financial Daily.

Consequently, IOI Corp announced a higher dividend payout. On July 1, it declared a second interim dividend of 120% or 12 sen per share. With the first eight sen per share interim dividend announced on Feb 25, this brings the total dividends for the year to 20 sen.

IOI Corp’s share price increased 22.4% to RM5.14 last Friday from RM4.20 on Jan 15, the day its demerged property business, IOI Properties Group Bhd, made its initial public offering debut.

However, Moody’s Investors Service is concerned about the distribution as its credit metrics are “already challenged” following the acquisition of Unico-Desa Plantations Bhd in November 2013.

“While we expected FY14 (financial year 2014 ended June 30) to be a year of transition and for IOI’s credit profile to weaken, the pressure on leverage has been aggravated by management actions”, Moody’s vice-president and senior credit officer Alan Greene said in a statement last Thursday.

It said the performance of IOI Corp’s retained businesses in FY14 seems to have a “limited relationship” with the company’s bulk of debt and its shareholder-friendly distribution during the year.

“The group’s net debt as at March 31, 2014 was some RM1.8 billion larger than suggested by the pro forma numbers presented when the property hive-off was announced.

“As a result, credit metrics are unlikely to be restored to a level appropriate to the rating until the financial year ending June 2016 at the earliest,” said Moody’s.

Kenanga Research’s Lim feels that IOI Corp’s bond credit-worthiness is not a major issue given its strong cash flow from its plantation business.

“IOI Corp should be able to serve its interest payments and repay its debts on time, even with the higher dividends,” he said, adding that a near-term catalyst should result from the dividend, which has been a positive surprise.

“We expect next quarter results to be good with an estimated core net profit growth of 14% to RM1.46 billion,” he said.

According to Bloomberg data, Kenanga Research has a “buy” call on IOI Corp while Maybank IB Research has a “sell” call. Six other research houses which also cover the stock have either a “neutral” or “hold” call.

To JF Apex Securities Bhd, IOI Corp is unlikely to see exciting earnings’ growth in the near term as it is hampered by its relatively mature plantation acreage.

“Earnings of other planters will increase [overall] but IOI Corp’s momentum will be slower compared to plantation companies with younger trees like TSH Resources Bhd,” said JF Apex research analyst Jessica Low Jze Tieng.

The research house also said IOI Corp’s nine-month (9MFY14) core net profit of RM990 million was below expectations because of the higher operating cost and lower margin from its downstream business.

“While we like its status as a pure upstream player after the demerger of its property division, we reckon that the high replanting cost would continue to weigh on the group’s earnings.

“We expect the group’s downstream business to be challenging going forward, following the recovery of feedstock price,” it said in a report.

IOI Corp’s net profit jumped 283% to RM2.18 billion in the third quarter ended March 31, 2014, from RM567.8 million in the previous corresponding quarter. Revenue was 0.9% higher at RM2.9 billion.

M&A Securities, which recently initiated coverage of IOI Corp, said the company remains an efficient plantation player despite its unattractive tree age profile and losing income from the property division after the demerger.

“We foresee IOI Corp still being one of the most efficient and respected integrated palm oil players in Malaysia and loved by investors, given its deep liquidity and big market cap,” it said.

It added that IOI Corp has one of the highest fresh fruit bunch yields among the stocks under its coverage, with 24.46 million tonnes against its peers and industry’s 19 million tonnes.


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


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Timeless Homes introduces luxury chalets in the Tyrol Alps

PETALING JAYA: Timeless Homes GmbH announced last Friday that its new brand Timeless Chalets has been put on the market with the brand’s first project, a luxury chalet in the town of Going. This location is within a region called Wilder Kaiser, which is one of the top real estate locations in the Tyrol Alps in Austria. Timeless Homes of the Timeless Luxury Group is a Munich-based company which creates exclusive turnkey luxury villas under the Timeless Homes brand, and leases high-quality vacation villas under the Timeless Hideaways brand. “We are delighted to be able to offer our clients a first-class Timeless Chalets brand property in such a unique and fabulous location,” said Timeless Luxury Group chief executive officer Michael Gössl. “Our architectural concept, which combines traditional construction with modern architectural and design elements, fits into the Wilder Kaiser region perfectly,” he said. The luxury chalets are situated at the foothills of the Wilder Kaiser mountain range not far from the Stanglwirt Hotel and near the Kitzbühel winter sports area. The chalets are projected to be completed within the first half of 2015 and the property is for immediate sale. The client also has the option to purchase the chalets fully furnished with the entire interior design concept. The chalets employ the distinctive design style of the Timeless brand. Utilising an innovative architectural concept based on a modern interpretation of traditional timber construction, Timeless Chalets features clean lines, minimalistic elegance and an atmosphere of luxurious comfort. The houses are constructed using high-quality natural materials, such as natural stone and aged wood. They have luxurious amenities and have large glass facades and glass-enclosed balconies which create a spacious environment with easy access between indoor and outdoor areas. The 2-storey chalet has a floor area of approximately 400 sq m and comprises four double rooms that can accommodate up to eight guests, three baths, a large open living and dining area, and a wellness area which has a sauna, steam bath and whirlpool. A unique feature of the chalet is its spacious southwest-facing terrace with an open fire pit and a breathtaking view of the Wilder Kaiser and the Kitzbüheler Horn. Timeless Chalets, being the second Timeless Homes real estate project this year following the sale of the property in Grünwald near Munich, is built in collaboration with Geisler & Trimmel GmbH, one of the most renowned hotel developers in Austria. The luxury chalet will be marketed directly via Timeless Homes as well as through various local sales partners and will be targeting private users as well as commercial investors who wish to take advantage of the boom in luxurious chalets in the Alps. Ensuing Timeless Chalets projects will be situated at high-profile locations in the Alps as well. The Timeless Luxury Group’s other company Timeless Luxury GmbH implements other projects beyond the real estate sector under the Timeless brand, such as the Timeless Yachts brand which launched an 18m “Ocean Club” luxury yacht at the Boot Düsseldorf trade fair early this year. — By Chai Yee Hoong This article first appeared in The Edge Financial Daily, on July 18, 2014. For more information on Building and Construction seminars, please visit www.asiapacificevents.com

Trinity to launch RM660m projects over next 12 months

KUALA LUMPUR: Trinity Group Sdn Bhd is planning to launch RM660 million worth of residential projects in the Klang Valley over the next 12 months, said the founder and managing director Datuk Neoh Soo Keat.

The projects will be in Sungai Besi and Mont Kiara, he told reporters yesterday. Both projects are high-rises.

“We have already begun work on these projects. They will keep us busy over the next few years,” he said.

According to Neoh, the freehold projects will cover approximately three acres (1.21ha)  each.

The Sungai Besi condominium, which the group plans to launch in October or November, has a gross development value (GDV) of RM270 million and will have over 400 units.

While he declined to reveal the unit prices, he said “they will be very competitive”.

Meanwhile, the development in Mont Kiara, which the group plans to launch in the second quarter of 2015, has a GDV of RM390 million with over 300 residential units that will be priced from RM1 million.

Both projects will have units ranging from 1,000 sq ft to 1,300 sq ft, he added.

Neoh was speaking at a media tour of The Z Residence condominium in Bukit Jalil, in Kuala Lumpur.

The Z Residence, which was completed in June, comprises four blocks of 26- and 27-storey condominiums over a 6.7-acre freehold site.

There are 1,136 units with 2-, 3- and 3+1-bedroom layouts while built-ups range from 1,032 sq ft to 1,407 sq ft. Prices start from RM350,000, bringing the project’s GDV to RM580 million.

Almost all but 30 of the units have been sold since the first block was launched in 2011, according to a Trinity Group spokesman.

The condo’s facilities include a 180-foot infinity pool with a pool pavilion, a sky lounge perched 430 feet above ground level, and floating gardens on the ground floor.

To reduce congestion, Trinity Group also built an 800m road to shorten travelling time between Puchong and Bukit Jalil via the Bukit Jalil Highway at a cost of RM3 million.

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GuocoLand has upcoming projects worth RM2.5b in GDV

KUALA LUMPUR: GuocoLand (Malaysia) Bhd, the property arm of Hong Leong Group Malaysia, has in its pipeline several projects  with a total gross development value (GDV) of RM2.5 billion, which will last for three years.


“These include our township project in Rawang, as well as our Sepang project. [Sepang] is an exciting project for us as we registered a 100% take-up rate for the terrace houses for which we had a pre-launch a few weeks ago. The demand is pretty strong,” GuocoLand managing director Tan Lee Koon told reporters after the topping-out ceremony for the group’s DC Residency project last Friday.

“While we will focus on the residential developments in Sepang this year, we will have some commercial products coming up next year,” he said.

GuocoLand’s upcoming projects are the Emerald, a township project in Rawang; Pantai Sepang Putra in Sepang; Alam Damai, a 50-acre (20.23ha) residential development in Cheras; and PJ City in Petaling Jaya.

Tan was not able to disclose the group’s current unbilled sales as GuocoLand is in a closed period as its full-year financial performance is due to be announced soon.

For the nine months ended March 31, 2014, GuocoLand posted a net profit of RM40.9 million on revenue of RM178.6 million, which had fallen 5.2% from the previous corresponding period, when the group benefited from a sale of land in Cheras amounting to RM68.6 million.

GuocoLand has a current land bank of 10,000 acres located within the central region of the Klang Valley and in Jasin, Melaka.

Tan said prospects for the group look bright. “Next year is definitely exciting as the Damansara City project will be completed and with a lot of components being sold, we should see a substantial regular, recurring income base. It may not be realised immediately, but [next year] will be the turning point.

“At the same time, our other residential projects are very promising. All in all, I am optimistic about the company’s prospects,” he said.

Earlier the group completed its topping-out ceremony for DC Residency, which features two 28-storey blocks comprising 370 serviced apartments with prices starting from RM1,600 per sq ft. It is part of the RM2.5 billion Damansara City integrated development in Damansara Heights, which is slated for completion by mid-2016.

“The entire Damansara City project will be completed well ahead of the Sungai Buloh-Jalan Semantan mass rapid transit (MRT) line, which is expected to be operational before the end of 2016,” said Tan.

The 8.5-acre development will have a MRT station nearby. Apart from DC Residency, Damansara City features two office towers, a shopping mall and a five-star hotel, which will be managed by Clermont Kuala Lumpur — also part of the Hong Leong Group.


This article first appeared in The Edge Financial Daily, on July 21, 2014.


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