Developer marks historic opening

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

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

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

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

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

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

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

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

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

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

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

For more information on Building and Construction seminars, please visit www.asiapacificevents.com

Luxury development rapidly taking shape in Kuala Lumpur

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

For more information on Building and Construction seminars, please visit www.asiapacificevents.com

Mall project in Johor attracts strong interest

An artist’s impression of Capital 21 development in Iskandar Malaysia.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Capital 21 is slated to be complete in 2018.

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

For more information on Building and Construction seminars, please visit www.asiapacificevents.com

Big plans for Ipoh

An artist’s impression of the new Foo Yet Kai Building and hotel that City Motors Group plans to build in Jalan Sultan Iskandar, Ipoh.

AT AN age when most people are enjoying their retirement, Datuk Dr Foo Wan Kien, 72, is still busy steering his company towards carrying out several mega projects.

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

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

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

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

Wan Kien with material detailing the projects to be undertaken by his group of companies in the near future.

 “Just like the country’s first fire dragon performance, which took place in Ipoh recently and was sponsored by our group, I want to create something for my hometown to help it progress and prosper.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

For more information on Building and Construction seminars, please visit www.asiapacificevents.com

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

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

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

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

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

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

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

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

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

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

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

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

For more information on Building and Construction seminars, please visit www.asiapacificevents.com

Location, quality to drive GuocoLand’s growth

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

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

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

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

He expects 80% to 85% of the launches to be residential units this year.

To him, location and quality are the key ingredients for good sales.

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

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

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

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

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

Living room of the show house with drapes.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

It is launching 74 units under the project known as The Rise, which sits on the highest point in the Emerald 

development, today. It has received overwhelming interest particularly on the zero-lot bungalows.

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

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

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

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

For more information on Building and Construction seminars, please visit www.asiapacificevents.com

Jump in i-Bhd’s net profit

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

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

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

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

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

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

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

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

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

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

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

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

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

For more information on Building and Construction seminars, please visit www.asiapacificevents.com