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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