By Sharen Kaur (Published in NST on Dec 28 2009)
PROPERTY developer YNH Holdings Bhd (3158) may revise the proposal to build a 45-storey Grade A office building in Jalan Sultan Ismail, Kuala Lumpur, after Kuwait Finance House (M) Bhd (KFHMB) aborted plans to buy part of the property.
The proposed YNH Tower was to have featured two wings on a luxury three-level retail podium. The development would take up 1.2ha next to the Shangri-La Hotel.
Changes to the original plan may be made after KFHMB decided against buying one of the wings for RM926 million.
YNH's head of corporate services, Daniel Chan, said it has received more than five offers from investors in Malaysia, Europe, Singapore and Hong Kong since the KFHMB deal was aborted. They include property and pension funds, private equity and real estate investment trusts, which want to buy the whole block.
"If they offer us a good price, we will sell them the whole block. Otherwise, we are in no hurry to sell. We aim to sell the first wing for more than RM926 million, and the second wing for around RM1.2 billion," Chan told Business Times.
Tuesday, December 29, 2009
Dijaya plans RM1.8b property launches
By Sharen Kaur (Published in NST on June 26 2009)
DEVELOPER Dijaya Corp Bhd (5401) will launch properties worth RM1.8 billion in fiscal 2010 to expand and sustain earnings.
Managing director Datuk Tong Kien Onn told Business Times after the company's shareholders meeting yesterday that it expects its net profit and revenue to improve slightly this year despite a weak market.
Tong said Dijaya achieved RM153 million in sales in the first half of 2009 and is expecting RM100 million more in the second half.
But profit will be hit due to higher land and construction costs. The company is projecting a net profit margin of 15 to 18 per cent this year versus 25 per cent before.
For the year to December 31 2008, Dijaya posted a net profit of RM34.4 million on revenue of RM244.1 million.
In the first quarter of 2010, Dijaya will unveil Tropicana Grande, the last residential development at its award-winning 250ha Tropicana Golf & Country Resort in Petaling Jaya.
It plans to offer 300 units of high-end condominiums for about RM2 million each.
In the second or third quarter, Dijaya will launch three projects that will include Tropicana Avenue in Petaling Jaya, which will feature eight- and 10-storey office blocks including two floors for retail.
In Balakong, Kajang, Dijaya will launch a RM380 million resort development comprising apartments, and two- and three-storey semi-detached and link houses.
In Sungai Long, Cheras, it will launch a RM200 million housing project that will have semi-detached and double-storey link houses, and low-cost apartments.
By the end of 2010, Dijaya will introduce Pool Villas in Tropicana, offering semi-detached houses worth an average of RM2.8 million each, or a combined RM160 million.
Finally, it plans to launch twin-tower offices blocks in Tropicana for more than RM150 million.
Dijaya will sell one block and retain the other to build its investment portfolio for recurring income.
Currently, Dijaya's portfolio includes the 12-storey Tropicana City office tower and newly-opened Tropicana City Mall in Damansara.
DEVELOPER Dijaya Corp Bhd (5401) will launch properties worth RM1.8 billion in fiscal 2010 to expand and sustain earnings.
Managing director Datuk Tong Kien Onn told Business Times after the company's shareholders meeting yesterday that it expects its net profit and revenue to improve slightly this year despite a weak market.
Tong said Dijaya achieved RM153 million in sales in the first half of 2009 and is expecting RM100 million more in the second half.
But profit will be hit due to higher land and construction costs. The company is projecting a net profit margin of 15 to 18 per cent this year versus 25 per cent before.
For the year to December 31 2008, Dijaya posted a net profit of RM34.4 million on revenue of RM244.1 million.
In the first quarter of 2010, Dijaya will unveil Tropicana Grande, the last residential development at its award-winning 250ha Tropicana Golf & Country Resort in Petaling Jaya.
It plans to offer 300 units of high-end condominiums for about RM2 million each.
In the second or third quarter, Dijaya will launch three projects that will include Tropicana Avenue in Petaling Jaya, which will feature eight- and 10-storey office blocks including two floors for retail.
In Balakong, Kajang, Dijaya will launch a RM380 million resort development comprising apartments, and two- and three-storey semi-detached and link houses.
In Sungai Long, Cheras, it will launch a RM200 million housing project that will have semi-detached and double-storey link houses, and low-cost apartments.
By the end of 2010, Dijaya will introduce Pool Villas in Tropicana, offering semi-detached houses worth an average of RM2.8 million each, or a combined RM160 million.
Finally, it plans to launch twin-tower offices blocks in Tropicana for more than RM150 million.
Dijaya will sell one block and retain the other to build its investment portfolio for recurring income.
Currently, Dijaya's portfolio includes the 12-storey Tropicana City office tower and newly-opened Tropicana City Mall in Damansara.
Monday, December 28, 2009
Bali hotels expect to do better in 2010
By Sharen Kaur (Published in NST on December 28 2009)
THE Bali Hotels Association (BHA) expects the outlook for Bali next year to be positive as airlines increase their weekly flights to the island.
Chairman Robert Lagerwey said airlines such as KLM and Garuda are making more flights to Bali.
Thus, he expects revenue and room occupancy for hoteliers next year to grow 5-8 per cent.
BHA has 100 member hotels, majority of which are 4- and 5-star properties.
Lagerwey said arrivals in Bali have been strong despite the economic downturn, strongly supported by markets such as Malaysia.
Hotel operators and owners in Bali have been agile, adapting to the changing circumstances to sustain their performance.
"While 2009 was probably not our best year in Bali, some hotels were able to increase occupancy over their prior year.
"Many hotels had a relatively flat performance over 2008, which in itself is a good indicator how fortunate we have been in our markets. They expect to do better next year," he told Business Times.
Lagerwey expects more arrivals from Europe, Russia, Middle East and the US towards the second half of 2010.
"The bottom line is, in Bali there are unique products to sell with great hospitality offerings in a very wide range, all at a stone's throw distance from Singapore, Malaysia, Australia, Hong Kong, Japan and Thailand," he said.
BHA has embarked on a destination marketing programme called "Bali is My Life" by producing a movie cum documentary on all aspects of Bali for distribution worldwide.
"The movie will be National Geographic standard and will help us in promoting our island," he said.
THE Bali Hotels Association (BHA) expects the outlook for Bali next year to be positive as airlines increase their weekly flights to the island.
Chairman Robert Lagerwey said airlines such as KLM and Garuda are making more flights to Bali.
Thus, he expects revenue and room occupancy for hoteliers next year to grow 5-8 per cent.
BHA has 100 member hotels, majority of which are 4- and 5-star properties.
Lagerwey said arrivals in Bali have been strong despite the economic downturn, strongly supported by markets such as Malaysia.
Hotel operators and owners in Bali have been agile, adapting to the changing circumstances to sustain their performance.
"While 2009 was probably not our best year in Bali, some hotels were able to increase occupancy over their prior year.
"Many hotels had a relatively flat performance over 2008, which in itself is a good indicator how fortunate we have been in our markets. They expect to do better next year," he told Business Times.
Lagerwey expects more arrivals from Europe, Russia, Middle East and the US towards the second half of 2010.
"The bottom line is, in Bali there are unique products to sell with great hospitality offerings in a very wide range, all at a stone's throw distance from Singapore, Malaysia, Australia, Hong Kong, Japan and Thailand," he said.
BHA has embarked on a destination marketing programme called "Bali is My Life" by producing a movie cum documentary on all aspects of Bali for distribution worldwide.
"The movie will be National Geographic standard and will help us in promoting our island," he said.
RM6m refurbishment, rebranding for Mint Hotel
By Sharen Kaur (Pubished in NST on December 28 2009)
The three-star Mint Hotel along the Kuala Lumpur-Seremban highway will undergo a RM6 million refurbishment and rebranding programme and re-open by the first half of next year.
Property tycoon Tan Sri Lee Kim Yew, the owner of Mint Hotel, said he is now drafting a business plan to turn the hotel around, which had ceased operations since February 2005.
This follows the conclusion of Lee's acquisition of Mint Hotel from Ambank (M) Bhd for RM45 million, which Lee said was not voluntary.
A sales and purchase agreement was signed with the liquidator, Ernst & Young, in June this year, via his privately-held firm Lambang Raya Sdn Bhd.
"The hotel is not worth that much now. I am a victim. If i don't buy it, the bank will sue me. I will end up in a legal suit. I am caught because of the undertaking I had with the bank a few years ago," Lee, who is also the founder and executive chairman of Country Heights Holdings Bhd, told Business Times.
Property valuers have estimated Mint Hotel to be worth some RM23 million.
Ambank declined to comment.
The issue started when Jennico Associates Sdn Bhd, which is 50 per cent owned by Lee through Lambang Raya, was liquidated by a creditor in January 2000.
At that point, Jennico had already defaulted on a term loan of RM47 million granted by AmFinance Bhd in 1995, under the stewardship of Datuk Major (R) Zulkifli Abdul Mokti and KifliMokti Sdn Bhd, who owns the balance 50 per cent of the company.
Mint Hotel was then auctioned by Ernst & Young in 2005 and this attracted many bidders, including Lee, Lotus Family Group and Majestic Hotel.
They were keen to buy the 413-room hotel as it overlooks the Selangor Turf Club race course and is close to the Mines Exhibition Centre, Mines Wonderland, the Mines shopping mall and a golf course.
Business Times reported in August 2006 that Lotus won the bid to buy the hotel.
But a tussle broke as Lee claimed he was the rightful owner of the property.
According to Lee, he had submitted a bid for RM55 million for the hotel in October 2005 after being advised by AmBank, and a 5 per cent, or RM2.75 million, deposit was made to Ernst & Young.
Lee said his bid was based on a letter of undertaking he signed with Ambank in October 1995 stating that he will buy the hotel for RM55 million in the event of default of a loan taken by Jennico.
The three-star Mint Hotel along the Kuala Lumpur-Seremban highway will undergo a RM6 million refurbishment and rebranding programme and re-open by the first half of next year.
Property tycoon Tan Sri Lee Kim Yew, the owner of Mint Hotel, said he is now drafting a business plan to turn the hotel around, which had ceased operations since February 2005.
This follows the conclusion of Lee's acquisition of Mint Hotel from Ambank (M) Bhd for RM45 million, which Lee said was not voluntary.
A sales and purchase agreement was signed with the liquidator, Ernst & Young, in June this year, via his privately-held firm Lambang Raya Sdn Bhd.
"The hotel is not worth that much now. I am a victim. If i don't buy it, the bank will sue me. I will end up in a legal suit. I am caught because of the undertaking I had with the bank a few years ago," Lee, who is also the founder and executive chairman of Country Heights Holdings Bhd, told Business Times.
Property valuers have estimated Mint Hotel to be worth some RM23 million.
Ambank declined to comment.
The issue started when Jennico Associates Sdn Bhd, which is 50 per cent owned by Lee through Lambang Raya, was liquidated by a creditor in January 2000.
At that point, Jennico had already defaulted on a term loan of RM47 million granted by AmFinance Bhd in 1995, under the stewardship of Datuk Major (R) Zulkifli Abdul Mokti and KifliMokti Sdn Bhd, who owns the balance 50 per cent of the company.
Mint Hotel was then auctioned by Ernst & Young in 2005 and this attracted many bidders, including Lee, Lotus Family Group and Majestic Hotel.
They were keen to buy the 413-room hotel as it overlooks the Selangor Turf Club race course and is close to the Mines Exhibition Centre, Mines Wonderland, the Mines shopping mall and a golf course.
Business Times reported in August 2006 that Lotus won the bid to buy the hotel.
But a tussle broke as Lee claimed he was the rightful owner of the property.
According to Lee, he had submitted a bid for RM55 million for the hotel in October 2005 after being advised by AmBank, and a 5 per cent, or RM2.75 million, deposit was made to Ernst & Young.
Lee said his bid was based on a letter of undertaking he signed with Ambank in October 1995 stating that he will buy the hotel for RM55 million in the event of default of a loan taken by Jennico.
Tuesday, December 22, 2009
Current projects to lift Gamuda earnings
By Sharen Kaur (Published in NST on December 18 2009)
MALAYSIA's second-biggest builder Gamuda Bhd (5398) expects its net profit and revenue for the current financial year to improve due to higher contributions from on-going construction works.
Group managing director Datuk Lin Yun Ling said one third of earnings will come from abroad. He expects half of earnings to come from overseas in 2011.
He said Gamuda has RM8 billion of outstanding orders and unbilled sales of RM700 million, which will be recognised in stages.
Unbilled sales would also double in two years as it has several future launches.
"We have enough on our plate to improve our performance," he said after the company's shareholders meeting in Shah Alam, Selangor, yesterday.
Last year, Gamuda made a net profit of RM193.7 million on a revenue of RM2.73 billion.
Its on-going projects are the RM12.5 billion double-tracking project in Malaysia and a development project in Vietnam worth RM2 billion.
It has contracts worth RM4 billion for the Sitra Causeway Bridges in Bahrain and the New Doha International Airport (NDIA) in Qatar.
Lin said the projects are progressing despite the debt crisis in Dubai.
"We are bidding for jobs at home and in the Middle East. We like highway, road, dam, port and airport projects with reasonable returns," he said.
Locally, Gamuda is eyeing the Pahang-Selangor interstate water transfer project, the Hulu Terengganu hydroelectric dam, the new Sepang low-cost carrier terminal and the extension of the Klang Valley Light Rail Transit.
Meanwhile, Lin said the shareholders of Syarikat Pengeluar Air Sungai Selangor Sdn Bhd (Splash) hope to resolve the sale of its water assets with the Federal government, amicably.
Gamuda and Kumpulan Perangsang Selangor Bhd hold 40 per cent and 30 per cent of Splash respectively. The rest is held by Sweet Water Alliance, controlled by Land & General Bhd founder Tan Sri Wan Azmi Wan Hamzah.
In July, the shareholders had agreed to sell the water-related assets and operations of Splash to the Selangor government for RM2.98 billion.
But the state aborted plans to buy all of Selangor's water assets for RM9.2 billion due to disagreements with the other concessionaire Puncak Niaga (M) Sdn Bhd.
The Federal government has stepped in and will announce its offer price for Selangor's water assets, via Pengurusan Aset Air Bhd, this month.
"The issue now is on pricing. There must be a win-win situation for the buyer and seller," Lin said.
He said the new offer should consider the RM1.5 billion invested by Gamuda so far and the potential income over the remaining 20 years of the concession.
"If the buyer feels he can tear the existing agreement, the matter will not be resolved," Lin said.
MALAYSIA's second-biggest builder Gamuda Bhd (5398) expects its net profit and revenue for the current financial year to improve due to higher contributions from on-going construction works.
Group managing director Datuk Lin Yun Ling said one third of earnings will come from abroad. He expects half of earnings to come from overseas in 2011.
He said Gamuda has RM8 billion of outstanding orders and unbilled sales of RM700 million, which will be recognised in stages.
Unbilled sales would also double in two years as it has several future launches.
"We have enough on our plate to improve our performance," he said after the company's shareholders meeting in Shah Alam, Selangor, yesterday.
Last year, Gamuda made a net profit of RM193.7 million on a revenue of RM2.73 billion.
Its on-going projects are the RM12.5 billion double-tracking project in Malaysia and a development project in Vietnam worth RM2 billion.
It has contracts worth RM4 billion for the Sitra Causeway Bridges in Bahrain and the New Doha International Airport (NDIA) in Qatar.
Lin said the projects are progressing despite the debt crisis in Dubai.
"We are bidding for jobs at home and in the Middle East. We like highway, road, dam, port and airport projects with reasonable returns," he said.
Locally, Gamuda is eyeing the Pahang-Selangor interstate water transfer project, the Hulu Terengganu hydroelectric dam, the new Sepang low-cost carrier terminal and the extension of the Klang Valley Light Rail Transit.
Meanwhile, Lin said the shareholders of Syarikat Pengeluar Air Sungai Selangor Sdn Bhd (Splash) hope to resolve the sale of its water assets with the Federal government, amicably.
Gamuda and Kumpulan Perangsang Selangor Bhd hold 40 per cent and 30 per cent of Splash respectively. The rest is held by Sweet Water Alliance, controlled by Land & General Bhd founder Tan Sri Wan Azmi Wan Hamzah.
In July, the shareholders had agreed to sell the water-related assets and operations of Splash to the Selangor government for RM2.98 billion.
But the state aborted plans to buy all of Selangor's water assets for RM9.2 billion due to disagreements with the other concessionaire Puncak Niaga (M) Sdn Bhd.
The Federal government has stepped in and will announce its offer price for Selangor's water assets, via Pengurusan Aset Air Bhd, this month.
"The issue now is on pricing. There must be a win-win situation for the buyer and seller," Lin said.
He said the new offer should consider the RM1.5 billion invested by Gamuda so far and the potential income over the remaining 20 years of the concession.
"If the buyer feels he can tear the existing agreement, the matter will not be resolved," Lin said.
Nikko Bali in talks with AirAsia on room sales
By Sharen Kaur (Published in NST on December 22 2009)
NIKKO Bali Resort and Spa, a five-star resort in Nusa Dua, Bali, is in talks with airlines including AirAsia to sell rooms and grow the hotel's occupancy and revenue.
"We are still discussing with AirAsia as certain conditions don't match what we want. (But) Malaysia is an important destination for us," its general manager Jean-Charles Le Coz said in an interview with Business Times.
"While business from Malaysia is still small, we expect it to grow as other airlines increase their flight frequency," he added.
Business Times reported recently that Indonesia's national carrier Garuda Indonesia is looking to reinstate its flights from Kuala Lumpur to Denpasar in Bali by September 2010.
Le Coz said the financial meltdown has affected room sales in the first half of the year.
The resort, wholly-owned by Indonesia's PT Caterison Sukses, has revised its hotel occupancy rate and revenue target for 2009 to 60 per cent and US$14 million, (US$1 = RM3.44) respectively.
It had targeted for revenue to rise 30 per cent to US$17 million this year, helped by higher room rates, and closing at 70 per cent, similar to last year.
Nikko Bali, which has 389 rooms with garden, ocean and pool views, has raised room rates by 40 per cent this year.
The rates now start from US$160 per night for a standard room to US$2,000 per night for a presidential suite.
Le Coz said Nikko Bali will do better next year fuelled by its meeting, incentive, convention and exhibition (MICE) and wedding packages.
He said four- and five-star hotels and resorts in Bali are performing above average currently with rising tourists arrivals from Europe, Southeast Asia, Australia, Russia, North Korea and Japan.
"We are looking for new markets and to grow our market from Western Europe and Southeast Asia," he said.
He said he is also planning to tap the Greater China market.
"Competition is stiffer now in Bali but what we can offer is an alternative," Le Coz said.
Nikko Bali sits on a 40-metre cliff and offers a stunning 180 degree view over the Indian Ocean. It is 25 minutes from the Ngurah Rai International Airport.
Among its facilities, those operating via third parties are Mandara Spa and a Camel Safari.
NIKKO Bali Resort and Spa, a five-star resort in Nusa Dua, Bali, is in talks with airlines including AirAsia to sell rooms and grow the hotel's occupancy and revenue.
"We are still discussing with AirAsia as certain conditions don't match what we want. (But) Malaysia is an important destination for us," its general manager Jean-Charles Le Coz said in an interview with Business Times.
"While business from Malaysia is still small, we expect it to grow as other airlines increase their flight frequency," he added.
Business Times reported recently that Indonesia's national carrier Garuda Indonesia is looking to reinstate its flights from Kuala Lumpur to Denpasar in Bali by September 2010.
Le Coz said the financial meltdown has affected room sales in the first half of the year.
The resort, wholly-owned by Indonesia's PT Caterison Sukses, has revised its hotel occupancy rate and revenue target for 2009 to 60 per cent and US$14 million, (US$1 = RM3.44) respectively.
It had targeted for revenue to rise 30 per cent to US$17 million this year, helped by higher room rates, and closing at 70 per cent, similar to last year.
Nikko Bali, which has 389 rooms with garden, ocean and pool views, has raised room rates by 40 per cent this year.
The rates now start from US$160 per night for a standard room to US$2,000 per night for a presidential suite.
Le Coz said Nikko Bali will do better next year fuelled by its meeting, incentive, convention and exhibition (MICE) and wedding packages.
He said four- and five-star hotels and resorts in Bali are performing above average currently with rising tourists arrivals from Europe, Southeast Asia, Australia, Russia, North Korea and Japan.
"We are looking for new markets and to grow our market from Western Europe and Southeast Asia," he said.
He said he is also planning to tap the Greater China market.
"Competition is stiffer now in Bali but what we can offer is an alternative," Le Coz said.
Nikko Bali sits on a 40-metre cliff and offers a stunning 180 degree view over the Indian Ocean. It is 25 minutes from the Ngurah Rai International Airport.
Among its facilities, those operating via third parties are Mandara Spa and a Camel Safari.
Monday, December 21, 2009
Garuda aims to reinstate flights from KL to Denpasar, Medan
By Sharen Kaur (Published in NST on December 21 2009)
Indonesia's national carrier Garuda Indonesia plans to reinstate its flights from Kuala Lumpur to Denpasar in Bali and Medan by September 2010, six years after the service was halted.
Joseph Tendean, general manager for Malaysia, said Garuda will use its new 737-800 aircraft to fly daily from Kuala Lumpur to the two destinations.
"We have the landing rights and will apply for a time slot in mid-2010," he said in an interview with Business Times in Kuala Lumpur recently.
Garuda stopped air travel from KL to Denpasar and Medan in 2004 due to poor traffic mainly due to the Bali bombings.
Tendean said Garuda is looking to grow its Malaysian business, which contributes around 3-5 per cent to group net profit and revenue.
Garuda, which made an operating revenue of RM7 billion last year, currently operates one daily flight for its KL-Jakarta-Lombok-Jakarta-KL route.
"Our load factor for the KL-Jakarta-KL route is around 70 per cent. This is an amazing increase from 45 per cent last year when it first started," Tendean said.
The flight to Lombok was introduced on November 1 this year. Garuda is using its 737-300 aircraft for the service but will switch to 737-800 in May 2010.
The carrier's fleet, which now consists of 63 aircraft, will double by 2014. It is buying new Boeing 777s, 737s and Airbus A330-200s.
"We have a few plans here. We know that Denpasar, Medan and Lombok are popular among Malaysians. Flight frequencies may increase in the near future." he added.
Garuda has code share agreements with more than seven airlines in Asia Pacific, including Malaysia Airlines (MAS) to help it strengthen its business.
Its partnership with MAS was inked six years ago, when it stopped flights to Bali and Medan.
"The partnership with the airlines is important to help Garuda grow. Competition is stiffer due to excess capacity led by weaker demand for travel.
"We are competing with Merpati Air and Lion Air for traffic here, which is why we developed the Lombok route," Tendean said.
Tendean said he expects the business from Kuala Lumpur to Lombok to be positive thanks to Malaysian companies like Sime Darby, Tabung Haji, Felcra and Felda hiring workers from the region.
He said there are some 50,000 people from Lombok employed in Malaysia and that is set to grow.
Indonesia's national carrier Garuda Indonesia plans to reinstate its flights from Kuala Lumpur to Denpasar in Bali and Medan by September 2010, six years after the service was halted.
Joseph Tendean, general manager for Malaysia, said Garuda will use its new 737-800 aircraft to fly daily from Kuala Lumpur to the two destinations.
"We have the landing rights and will apply for a time slot in mid-2010," he said in an interview with Business Times in Kuala Lumpur recently.
Garuda stopped air travel from KL to Denpasar and Medan in 2004 due to poor traffic mainly due to the Bali bombings.
Tendean said Garuda is looking to grow its Malaysian business, which contributes around 3-5 per cent to group net profit and revenue.
Garuda, which made an operating revenue of RM7 billion last year, currently operates one daily flight for its KL-Jakarta-Lombok-Jakarta-KL route.
"Our load factor for the KL-Jakarta-KL route is around 70 per cent. This is an amazing increase from 45 per cent last year when it first started," Tendean said.
The flight to Lombok was introduced on November 1 this year. Garuda is using its 737-300 aircraft for the service but will switch to 737-800 in May 2010.
The carrier's fleet, which now consists of 63 aircraft, will double by 2014. It is buying new Boeing 777s, 737s and Airbus A330-200s.
"We have a few plans here. We know that Denpasar, Medan and Lombok are popular among Malaysians. Flight frequencies may increase in the near future." he added.
Garuda has code share agreements with more than seven airlines in Asia Pacific, including Malaysia Airlines (MAS) to help it strengthen its business.
Its partnership with MAS was inked six years ago, when it stopped flights to Bali and Medan.
"The partnership with the airlines is important to help Garuda grow. Competition is stiffer due to excess capacity led by weaker demand for travel.
"We are competing with Merpati Air and Lion Air for traffic here, which is why we developed the Lombok route," Tendean said.
Tendean said he expects the business from Kuala Lumpur to Lombok to be positive thanks to Malaysian companies like Sime Darby, Tabung Haji, Felcra and Felda hiring workers from the region.
He said there are some 50,000 people from Lombok employed in Malaysia and that is set to grow.
Monday, December 7, 2009
KL Metro to use Dubai as base into Middle East market
By Sharen Kaur (Published in NST on December 7 2009)
KUALA Lumpur Metro (KL Metro) Group wants to have a presence in the Middle East, to help expand its property development and hotel business.
KL Metro, which set up a branch office in Dubai in 2006, hopes to use it as a launchpad.
Managing director Datuk Low Tak Fatt told Business Times that the company will use it as a base to get buyers from the Middle East, India and Pakistan for its potential water home projects in the Gulf region.
"Majority of our buyers for our water homes in Port Dickson are from Qatar, Kuwait, Dubai, Bahrain, India and Pakistan and they have asked us to build similar properties in the Gulf," Low said.
He added that KL Metro is looking at a few options, which includes the possibility of developing and reclaiming land to carry out water home projects with the Arabs.
The company is looking at similar investments in Vietnam and China. Plans are still preliminary.
"We want to take our brand, 'The Hibiscus' overseas. We are looking to trademark it," Low said.
KL Metro, which started as an infrastructure construction company ventured into property development in 2003, to generate an additional income stream.
Its landmark project is "The Legend International Water Homes" development in Port Dickson, Selangor.
In Penang, KL Metro will launch its flagship water homes project dubbed "The Hibiscus", by mid-2010.
Worth more than RM250 million, it consists of 460 units of five-star water homes, built and lined up in the shape of a hibiscus flower on sea.
KUALA Lumpur Metro (KL Metro) Group wants to have a presence in the Middle East, to help expand its property development and hotel business.
KL Metro, which set up a branch office in Dubai in 2006, hopes to use it as a launchpad.
Managing director Datuk Low Tak Fatt told Business Times that the company will use it as a base to get buyers from the Middle East, India and Pakistan for its potential water home projects in the Gulf region.
"Majority of our buyers for our water homes in Port Dickson are from Qatar, Kuwait, Dubai, Bahrain, India and Pakistan and they have asked us to build similar properties in the Gulf," Low said.
He added that KL Metro is looking at a few options, which includes the possibility of developing and reclaiming land to carry out water home projects with the Arabs.
The company is looking at similar investments in Vietnam and China. Plans are still preliminary.
"We want to take our brand, 'The Hibiscus' overseas. We are looking to trademark it," Low said.
KL Metro, which started as an infrastructure construction company ventured into property development in 2003, to generate an additional income stream.
Its landmark project is "The Legend International Water Homes" development in Port Dickson, Selangor.
In Penang, KL Metro will launch its flagship water homes project dubbed "The Hibiscus", by mid-2010.
Worth more than RM250 million, it consists of 460 units of five-star water homes, built and lined up in the shape of a hibiscus flower on sea.
Monday, November 30, 2009
Bina Puri in talks on RM200m KK waterfront mall, condo project
By Sharen Kaur (Published in NST on November 30 2009)
CONSTRUCTION firm Bina Puri Holdings Bhd (5932) is eyeing a contract worth around RM200 million to construct a retail mall and condominium at the Kota Kinabalu City Waterfront (KKCW) in Sabah.
The four-storey mall will feature a waterfront lifestyle, with a "single-spine" concept incorporating high-end retailers, while the condominium will have designer suites.
Bina Puri Construction Sdn Bhd (BPCSB) managing director Datuk Henry Tee Hock Hin said it is negotiating the contract with the developer, Waterfront Urban Development (WUD) Sdn Bhd.
"Talks are still on-going. We are ironing out some details with WUD," Tee told Business Times in an interview in Kota Kinabalu.
The RM500 million KKCW project, with a promenade centred on the culture of al-fresco and fine-dining, is a mixed commercial development comprising the mall and condominium, and a five-star international hotel.
The whole development, which is a joint venture between WUD and the Kota Kinabalu City Hall, is expected to be completed by the first quarter of 2011.
Tee said BPCSB has an existing contract with WUD worth RM30 million to lay the foundation for phase one of the development.
He added that the company is also eyeing another contract to build a mall for around RM100 million in Kuching, Sarawak.
Tee declined to elaborate on the project, but added that BPCSB has a contract worth around RM60 million from the client to lay the foundation for the mall.
Meanwhile, BPCSB is eyeing several projects in Sabah and Sarawak under the Ninth Malaysia Plan. These include hospital projects, roads, highways and private housing.
"For private housing, we are looking mainly at constructing high-end condos for developers. That is our niche area," Tee said.
BPCSB has several on-going projects in Sabah and Sarawak exceeding RM700 million.
It is constructing phases 1 and 2 of Universiti Malaysia Sabah for RM150 million, and low-cost houses for Syarikat Perumahan Negara Bhd worth around RM400 million.
BPCSB also recently completed the construction of the new State Assembly Hall in Kuching for RM300 million.
CONSTRUCTION firm Bina Puri Holdings Bhd (5932) is eyeing a contract worth around RM200 million to construct a retail mall and condominium at the Kota Kinabalu City Waterfront (KKCW) in Sabah.
The four-storey mall will feature a waterfront lifestyle, with a "single-spine" concept incorporating high-end retailers, while the condominium will have designer suites.
Bina Puri Construction Sdn Bhd (BPCSB) managing director Datuk Henry Tee Hock Hin said it is negotiating the contract with the developer, Waterfront Urban Development (WUD) Sdn Bhd.
"Talks are still on-going. We are ironing out some details with WUD," Tee told Business Times in an interview in Kota Kinabalu.
The RM500 million KKCW project, with a promenade centred on the culture of al-fresco and fine-dining, is a mixed commercial development comprising the mall and condominium, and a five-star international hotel.
The whole development, which is a joint venture between WUD and the Kota Kinabalu City Hall, is expected to be completed by the first quarter of 2011.
Tee said BPCSB has an existing contract with WUD worth RM30 million to lay the foundation for phase one of the development.
He added that the company is also eyeing another contract to build a mall for around RM100 million in Kuching, Sarawak.
Tee declined to elaborate on the project, but added that BPCSB has a contract worth around RM60 million from the client to lay the foundation for the mall.
Meanwhile, BPCSB is eyeing several projects in Sabah and Sarawak under the Ninth Malaysia Plan. These include hospital projects, roads, highways and private housing.
"For private housing, we are looking mainly at constructing high-end condos for developers. That is our niche area," Tee said.
BPCSB has several on-going projects in Sabah and Sarawak exceeding RM700 million.
It is constructing phases 1 and 2 of Universiti Malaysia Sabah for RM150 million, and low-cost houses for Syarikat Perumahan Negara Bhd worth around RM400 million.
BPCSB also recently completed the construction of the new State Assembly Hall in Kuching for RM300 million.
Sunday, November 29, 2009
Ascott aims to double portfolio here to RM1b
By Sharen Kaur (Published in NST on November 28 2009)
THE Ascott Group Ltd, the hospitality arm of the Temasek Holdings-controlled CapitaLand Ltd, aims to double its asset portfolio in Malaysia to more than RM1 billion by 2013.
Its Malaysian assets are currently worth around RM500 million, said Ascott managing director for Southeast Asia and Australia, Alfred Ong.
They include Ascott Kuala Lumpur, Somerset Seri Bukit Ceylon and Somerset Ampang.
Somerset Ampang comprises a 21-storey serviced residence of 207 units, which will house the HSC Medical Centre in the first eight floors.
The RM160 million project is scheduled to be completed by end-2010.
Ascott also owns and/or manages Somerset Gateway in Kuching, Sarawak.
Under its corporate leasing division, it manages 68 apartment units in Seri Bukit Ceylon Residence and Marc Residence in Kuala Lumpur.
By the third quarter of 2010, it will start to manage 147 units of Tiffini by i-Zen in Mont' Kiara, KL, a development by Ireka Group, which is slated to be completed by first half of 2010.
"We have several other projects in the pipeline in Malaysia. We are in the final stages of negotiation with the respective developers for management contracts," Ong said in an interview with Business Times in
Kuala Lumpur.
"We are looking into new frontiers like Penang and Petaling Jaya and making a stronger presence in Malaysia," he added.
Ascott recently inked a deal with GSB Sentral Sdn Bhd to manage the 21-storey serviced residence tower at 348 Sentral at KL Sentral, a transport hub in Brickfields.
GSB, a joint venture between Malaysian Resources Corp Bhd and Gapurna Sdn Bhd, is developing the energy efficient 348 Sentral for RM1 billion.
348 Sentral will also feature a 33-storey office tower but this will be managed by GSB.
The 348 Sentral project is schedule to be completed by the third quarter of 2012 and Ascott will manage the serviced residence for 15 years from then.
Ong said the serviced residence will strengthen Ascott's leadership position in Malaysia and increase its portfolio to 1,000 apartment units.
"If there is an offer from GSB to manage the office tower, we will consider it. For now, we will focus on getting new jobs in Malaysia," Ong said.
THE Ascott Group Ltd, the hospitality arm of the Temasek Holdings-controlled CapitaLand Ltd, aims to double its asset portfolio in Malaysia to more than RM1 billion by 2013.
Its Malaysian assets are currently worth around RM500 million, said Ascott managing director for Southeast Asia and Australia, Alfred Ong.
They include Ascott Kuala Lumpur, Somerset Seri Bukit Ceylon and Somerset Ampang.
Somerset Ampang comprises a 21-storey serviced residence of 207 units, which will house the HSC Medical Centre in the first eight floors.
The RM160 million project is scheduled to be completed by end-2010.
Ascott also owns and/or manages Somerset Gateway in Kuching, Sarawak.
Under its corporate leasing division, it manages 68 apartment units in Seri Bukit Ceylon Residence and Marc Residence in Kuala Lumpur.
By the third quarter of 2010, it will start to manage 147 units of Tiffini by i-Zen in Mont' Kiara, KL, a development by Ireka Group, which is slated to be completed by first half of 2010.
"We have several other projects in the pipeline in Malaysia. We are in the final stages of negotiation with the respective developers for management contracts," Ong said in an interview with Business Times in
Kuala Lumpur.
"We are looking into new frontiers like Penang and Petaling Jaya and making a stronger presence in Malaysia," he added.
Ascott recently inked a deal with GSB Sentral Sdn Bhd to manage the 21-storey serviced residence tower at 348 Sentral at KL Sentral, a transport hub in Brickfields.
GSB, a joint venture between Malaysian Resources Corp Bhd and Gapurna Sdn Bhd, is developing the energy efficient 348 Sentral for RM1 billion.
348 Sentral will also feature a 33-storey office tower but this will be managed by GSB.
The 348 Sentral project is schedule to be completed by the third quarter of 2012 and Ascott will manage the serviced residence for 15 years from then.
Ong said the serviced residence will strengthen Ascott's leadership position in Malaysia and increase its portfolio to 1,000 apartment units.
"If there is an offer from GSB to manage the office tower, we will consider it. For now, we will focus on getting new jobs in Malaysia," Ong said.
Monday, November 23, 2009
Bina Puri plans RM1.5b resort development
By Sharen Kaur (Published in NST on November 23 2009)
Bina Puri Holdings Bhd (5932) is planning a luxury resort development in Kota Kinabalu that could cost more than RM1.5 billion.
Bina Puri Construction Sdn Bhd (BPCSB) managing director Datuk Henry Tee Hock Hin, who oversees projects in Sabah, Sarawak and Brunei, said the development will feature hotels, resorts, high-end condominiums and villas.
Tee said it would be Bina Puri's first luxury development of such scale.
BPCSB is in talks with local developers and foreign parties, and a joint-venture company will be set up once all parties reach agreement.
"It is too early to say when the project will start, but we are looking at it seriously. What is important is to get the right partners in to build it together.
"We have seen a few parcels of land. BPCSB will ink some deals soon for the project," Tee said.
BPCSB will offer its expertise in design and construction, and assist the local authorities in promoting Sabah tourism, while its partners will provide the funding.
Tee said demand for luxury products in Sabah is set to improve over the next few years in line with the state government's plans to enhance tourism, education and healthcare.
"Besides the tourism project, we will continue to launch and build high-end developments in Sabah as there are fewer players in this segment in the marketplace."
Tee also said that Bina Puri, through BPCSB, will launch Phase 2 of its Jesselton condominium project in Tuaran, Kota Kinabalu, costing some RM50 million.
Phase 1, comprising 133 luxury condominium units worth RM64 million, was sold within a year of its launch at end-2006.
Bina Puri Holdings Bhd (5932) is planning a luxury resort development in Kota Kinabalu that could cost more than RM1.5 billion.
Bina Puri Construction Sdn Bhd (BPCSB) managing director Datuk Henry Tee Hock Hin, who oversees projects in Sabah, Sarawak and Brunei, said the development will feature hotels, resorts, high-end condominiums and villas.
Tee said it would be Bina Puri's first luxury development of such scale.
BPCSB is in talks with local developers and foreign parties, and a joint-venture company will be set up once all parties reach agreement.
"It is too early to say when the project will start, but we are looking at it seriously. What is important is to get the right partners in to build it together.
"We have seen a few parcels of land. BPCSB will ink some deals soon for the project," Tee said.
BPCSB will offer its expertise in design and construction, and assist the local authorities in promoting Sabah tourism, while its partners will provide the funding.
Tee said demand for luxury products in Sabah is set to improve over the next few years in line with the state government's plans to enhance tourism, education and healthcare.
"Besides the tourism project, we will continue to launch and build high-end developments in Sabah as there are fewer players in this segment in the marketplace."
Tee also said that Bina Puri, through BPCSB, will launch Phase 2 of its Jesselton condominium project in Tuaran, Kota Kinabalu, costing some RM50 million.
Phase 1, comprising 133 luxury condominium units worth RM64 million, was sold within a year of its launch at end-2006.
PNB may turn MAS building into 5-star hotel
By Sharen Kaur (Published in NST on November 23 2009)
PERMODALAN Nasional Bhd (PNB) may convert Bangunan MAS into a business or five-star hotel and demolish the multi-level podium next to it to make way for a luxury serviced apartment tower worth a combined RM1 billion.
PNB bought the 35-storey building on Jalan Sultan Ismail from Malaysia Airlines (MAS) three years ago for RM130 million.
The building, the former MAS headquarters, is currently 60-70 per cent tenanted at an average RM3.50 per sq ft.
Its biggest tenants are Jabatan Kebudayaan dan Kesenian Negara and Syarikat Perumahan Negara Bhd, each occupying 10-12 floors.
It is learnt that PNB is finalising details of the building plans and working on getting the necessary approvals from the relevant authorities.
"It would be wise for PNB to build the apartments from scratch instead of the hotel. Once PNB has finalised the details of the plan, it would demolish the podium, maybe around the second half of 2010 to make way for the apartments," sources said.
The podium levels have a huge advantage of large floor plates boasting some 15,000 sq ft to 23,000 sq ft, enabling efficient space allocation for the apartments to generate higher returns.
On Bangunan MAS, PNB will be refurbishing the whole building while retaining the existing structures.
"The hotel will have world-class standards. It would be operated by a third party," a source said
PNB president and group chief executive Tan Sri Hamad Kama Piah Che Othman, when met at the launch of the Malaysia 1000 (Malaysia Top Corporate Directory) 4th Edition in Kuala Lumpur recently, told Business Times the redevelopment of Bangunan MAS would take place "soon".
He declined, however, to give details of the plan but said it would feature high-end products.
Meanwhile, the tenants of Bangunan MAS have yet to get any letter from PNB to vacate the building.
"If they want us to vacate, they should give us six months notice so we have time to find a new place," said the official of one company, who declined to be named.
(ends)
PERMODALAN Nasional Bhd (PNB) may convert Bangunan MAS into a business or five-star hotel and demolish the multi-level podium next to it to make way for a luxury serviced apartment tower worth a combined RM1 billion.
PNB bought the 35-storey building on Jalan Sultan Ismail from Malaysia Airlines (MAS) three years ago for RM130 million.
The building, the former MAS headquarters, is currently 60-70 per cent tenanted at an average RM3.50 per sq ft.
Its biggest tenants are Jabatan Kebudayaan dan Kesenian Negara and Syarikat Perumahan Negara Bhd, each occupying 10-12 floors.
It is learnt that PNB is finalising details of the building plans and working on getting the necessary approvals from the relevant authorities.
"It would be wise for PNB to build the apartments from scratch instead of the hotel. Once PNB has finalised the details of the plan, it would demolish the podium, maybe around the second half of 2010 to make way for the apartments," sources said.
The podium levels have a huge advantage of large floor plates boasting some 15,000 sq ft to 23,000 sq ft, enabling efficient space allocation for the apartments to generate higher returns.
On Bangunan MAS, PNB will be refurbishing the whole building while retaining the existing structures.
"The hotel will have world-class standards. It would be operated by a third party," a source said
PNB president and group chief executive Tan Sri Hamad Kama Piah Che Othman, when met at the launch of the Malaysia 1000 (Malaysia Top Corporate Directory) 4th Edition in Kuala Lumpur recently, told Business Times the redevelopment of Bangunan MAS would take place "soon".
He declined, however, to give details of the plan but said it would feature high-end products.
Meanwhile, the tenants of Bangunan MAS have yet to get any letter from PNB to vacate the building.
"If they want us to vacate, they should give us six months notice so we have time to find a new place," said the official of one company, who declined to be named.
(ends)
Wednesday, November 18, 2009
TA Global plans to include HK or Singapore listing?
By Sharen Kaur (Published in NST on November 16 2009)
TA GLOBAL Bhd, en route to a listing on the Main Market of Bursa Malaysia, has lined up a series of plans for next year, including a possible dual listing abroad.
It is learnt that shareholders are looking to list the company either in Singapore or Hong Kong, a year after its local debut, to build up the brand internationally.
TA Global is due to list on Bursa Malaysia on the 23rd of this month.
Its parent, TA Enterprise Bhd (TAE), aims to raise RM230 million from the listing. TAE has folded all its property assets into TA Global to "unlock the hidden value".
"TA Global will be taken global. In future, it will have a presence in the US, Asia-Pacific starting with Singapore, and Europe, targeting the UK first. It will develop luxury properties and buy hotels," a source told
Business Times.
At present, TA Global is focused on Malaysia, Australia and Canada.
On the home front, it has lined up some RM7 billion worth of property development projects to be launched over the next two years.
They include Dutamas in Mont'Kiara, U-Thant 28 in Ampang, Seri Suria in Sri Damansara, Nova Square and two 50-storey residences near the Petronas Twin Towers in Kuala Lumpur City Centre.
In Canada, TA Global owns Terasen Centre (a triple A office building) and the four-star Aava Whistler Hotel. In Australia, it owns the five-star Radisson Plaza in Sydney and the Westin Melbourne. It is in the process of buying the Swissotel Merchant Court hotel in Singapore for S$260 million (RM632 million).
The source also said that TA Global was poised to launch a mixed development comprising luxury apartments, office towers and a hotel in Canada in 2010/11.
TA Global director and co-founder and TAE managing director Datin Alicia Tiah confirmed the plans for Canada, but declined to elaborate.
"We are looking at it. We have the landbank ready, but we want to wait for the right time to launch," she told Business Times at TA Global's prospectus launch in Kuala Lumpur in October.
Tiah had said she was looking to build TA Global's hospitality and property investment business by taking it global.
The plan includes buying four- to six-star hotels below market value and raising the company's image.
"It is still a good time to buy as prices are low. Locally, we hope to have a hotel in Penang and Malacca. We may build the hotels on our own or take over existing buildings."
TA Global, with RM2.4 billion of assets, was also eyeing hotels in international gateway cities like London and New York, Tiah said.
TA GLOBAL Bhd, en route to a listing on the Main Market of Bursa Malaysia, has lined up a series of plans for next year, including a possible dual listing abroad.
It is learnt that shareholders are looking to list the company either in Singapore or Hong Kong, a year after its local debut, to build up the brand internationally.
TA Global is due to list on Bursa Malaysia on the 23rd of this month.
Its parent, TA Enterprise Bhd (TAE), aims to raise RM230 million from the listing. TAE has folded all its property assets into TA Global to "unlock the hidden value".
"TA Global will be taken global. In future, it will have a presence in the US, Asia-Pacific starting with Singapore, and Europe, targeting the UK first. It will develop luxury properties and buy hotels," a source told
Business Times.
At present, TA Global is focused on Malaysia, Australia and Canada.
On the home front, it has lined up some RM7 billion worth of property development projects to be launched over the next two years.
They include Dutamas in Mont'Kiara, U-Thant 28 in Ampang, Seri Suria in Sri Damansara, Nova Square and two 50-storey residences near the Petronas Twin Towers in Kuala Lumpur City Centre.
In Canada, TA Global owns Terasen Centre (a triple A office building) and the four-star Aava Whistler Hotel. In Australia, it owns the five-star Radisson Plaza in Sydney and the Westin Melbourne. It is in the process of buying the Swissotel Merchant Court hotel in Singapore for S$260 million (RM632 million).
The source also said that TA Global was poised to launch a mixed development comprising luxury apartments, office towers and a hotel in Canada in 2010/11.
TA Global director and co-founder and TAE managing director Datin Alicia Tiah confirmed the plans for Canada, but declined to elaborate.
"We are looking at it. We have the landbank ready, but we want to wait for the right time to launch," she told Business Times at TA Global's prospectus launch in Kuala Lumpur in October.
Tiah had said she was looking to build TA Global's hospitality and property investment business by taking it global.
The plan includes buying four- to six-star hotels below market value and raising the company's image.
"It is still a good time to buy as prices are low. Locally, we hope to have a hotel in Penang and Malacca. We may build the hotels on our own or take over existing buildings."
TA Global, with RM2.4 billion of assets, was also eyeing hotels in international gateway cities like London and New York, Tiah said.
TA Global lines up RM7b projects over next 2 years
By Sharen Kaur (Published in NST on October 31 2009)
TA GLOBAL Bhd, which will rank as the country's fifth biggest listed property group in terms of market value, has lined up around RM7 billion worth of property development projects locally, to be launched over the next two years.
Director Datin Alicia Tiah said three projects will be launched in the second half of next year. They are Dutamas in Mont' Kiara, U-Thant 28 in Ampang and Seri Suria, a mix development in Sri Damansara.
By 2011, the group plans to launch Nova Square at the junction of Jalan Bukit Bintang and Jalan Imbi, and two 50-storey residences near the Petronas Twin Towers, in Kuala Lumpur.
Nova Square features an office tower, a serviced apartment block, a five-star hotel carrying the Aava brand, and a podium for boutique shops.
Tiah said the development order has been approved for Nova Square and it will be submitting its building plans soon.
"We will take a year to lay the foundation. Construction would take another three years. We are confident of selling the property due to its location. We will, however, retain the hotel, a few apartments and the
podium for recurring income," she added.
Tiah said she expects TA Global to maintain its profits in the current financial year ending January 31 2010 and in 2011. But revenue may dip due to fewer launches.
"We expect higher margins from our overseas investment properties, thanks to foreign exchange gain. Locally, we sold many high margin products and the profits would be recognised over the next few quarters,"
she said.
Last year, TA Global made a net profit of RM92.9 million on a revenue of RM441 million.
"If things go well and we get faster approvals for our projects, TA Global may surpass the RM93 million in fiscal 2011," she said at the launch of TA Global's prospectus in Kuala Lumpur yesterday.
TA Global is due to list on the Main Market of Bursa Malaysia on November 23.
Its parent, TA Enterprise Bhd (TAE) is looking to raise RM230 million from the listing.
Tiah, who is TAE co-founder and managing director, said it will use the proceeds to pare down debt and for working capital to expand its financial services.
TAE folded all its property assets into TA Global to "unlock the hidden value".
The initial public offering entails 460 million ordinary shares of RM0.50 each at an offer price of RM0.50 apiece.
It will offer 360 million shares for private placement to selected Bumiputera institutions and investors, and 90 million shares to Bumiputera citizens, companies, societies, cooperatives and institutions by way of balloting.
Some 10 million shares will be issued to eligible directors and employees of the company.
TAE will retain a 57 per cent stake in TA Global after the listing, while TA Global executive chairman Datuk Tony Tiah Thee Kian will hold 8.1 per cent.
In addition, TA Global, which has total assets valued at RM2.4 billion, will raise RM135 million via a rights issue.
Proceeds from the rights issue will be used to renovate its Aava Whistler Hotel in Canada, acquire more assets and undertake new developments.
TA GLOBAL Bhd, which will rank as the country's fifth biggest listed property group in terms of market value, has lined up around RM7 billion worth of property development projects locally, to be launched over the next two years.
Director Datin Alicia Tiah said three projects will be launched in the second half of next year. They are Dutamas in Mont' Kiara, U-Thant 28 in Ampang and Seri Suria, a mix development in Sri Damansara.
By 2011, the group plans to launch Nova Square at the junction of Jalan Bukit Bintang and Jalan Imbi, and two 50-storey residences near the Petronas Twin Towers, in Kuala Lumpur.
Nova Square features an office tower, a serviced apartment block, a five-star hotel carrying the Aava brand, and a podium for boutique shops.
Tiah said the development order has been approved for Nova Square and it will be submitting its building plans soon.
"We will take a year to lay the foundation. Construction would take another three years. We are confident of selling the property due to its location. We will, however, retain the hotel, a few apartments and the
podium for recurring income," she added.
Tiah said she expects TA Global to maintain its profits in the current financial year ending January 31 2010 and in 2011. But revenue may dip due to fewer launches.
"We expect higher margins from our overseas investment properties, thanks to foreign exchange gain. Locally, we sold many high margin products and the profits would be recognised over the next few quarters,"
she said.
Last year, TA Global made a net profit of RM92.9 million on a revenue of RM441 million.
"If things go well and we get faster approvals for our projects, TA Global may surpass the RM93 million in fiscal 2011," she said at the launch of TA Global's prospectus in Kuala Lumpur yesterday.
TA Global is due to list on the Main Market of Bursa Malaysia on November 23.
Its parent, TA Enterprise Bhd (TAE) is looking to raise RM230 million from the listing.
Tiah, who is TAE co-founder and managing director, said it will use the proceeds to pare down debt and for working capital to expand its financial services.
TAE folded all its property assets into TA Global to "unlock the hidden value".
The initial public offering entails 460 million ordinary shares of RM0.50 each at an offer price of RM0.50 apiece.
It will offer 360 million shares for private placement to selected Bumiputera institutions and investors, and 90 million shares to Bumiputera citizens, companies, societies, cooperatives and institutions by way of balloting.
Some 10 million shares will be issued to eligible directors and employees of the company.
TAE will retain a 57 per cent stake in TA Global after the listing, while TA Global executive chairman Datuk Tony Tiah Thee Kian will hold 8.1 per cent.
In addition, TA Global, which has total assets valued at RM2.4 billion, will raise RM135 million via a rights issue.
Proceeds from the rights issue will be used to renovate its Aava Whistler Hotel in Canada, acquire more assets and undertake new developments.
YTL Land in talks on Penang Island project
By Sharen Kaur (Published in NST on November 7 2009)
YTL Land & Development Bhd, the property arm of YTL Corp Bhd, said it will continue to launch new projects next year but will pace them out to match market demand to maintain its profitability.
Executive director Datuk Yeoh Seok Kian said it is also planning a new project in Penang.
"We are looking at a building on the island. We are in talks with the state government to see what we can do with the property. Penang Island is an exciting place. We believe there is potential to grow in terms of hotel
operation," Yeoh said in an interview with Business Times recently in Kuala Lumpur.
YTL Land has a landbank of more than 800ha, with estimated sales value of RM12 billion.
Among its largest projects at present is Sentul, Kuala Lumpur, the innovative 120ha residential and commercial development and Malaysia's first private gated park.
The Sentul development, comprising Sentul East and Sentul West, is expected to generate an estimated RM8 billion in sales over the next seven years.
The 36ha Pantai Hillpark development, which was first launched in 1991, is set to be completed within the next four years.
The last phase of the development is Pantai Peak, the RM500-million project, featuring a 16ha gated community. It will offer 233 units of luxury three-storey hillside semi-detached homes and bungalows with a
variety of layouts and design options.
YTL also has more than 400ha of land in northern Perak.
"We had planned to build housing and a university on the land but things did not materialise. We have no plans yet to develop the land. It would take a few more years before we embark on anything," Yeoh said.
On the company's performance, Yeoh said there will be an improvement in the current financial year ending June 30 2010, thanks to the sales of higher margin products at Lake Edge, Puchong, and Sentul.
Last year, YTL Land made a net profit of RM3.3 million on revenue of RM279 million .
YTL Land & Development Bhd, the property arm of YTL Corp Bhd, said it will continue to launch new projects next year but will pace them out to match market demand to maintain its profitability.
Executive director Datuk Yeoh Seok Kian said it is also planning a new project in Penang.
"We are looking at a building on the island. We are in talks with the state government to see what we can do with the property. Penang Island is an exciting place. We believe there is potential to grow in terms of hotel
operation," Yeoh said in an interview with Business Times recently in Kuala Lumpur.
YTL Land has a landbank of more than 800ha, with estimated sales value of RM12 billion.
Among its largest projects at present is Sentul, Kuala Lumpur, the innovative 120ha residential and commercial development and Malaysia's first private gated park.
The Sentul development, comprising Sentul East and Sentul West, is expected to generate an estimated RM8 billion in sales over the next seven years.
The 36ha Pantai Hillpark development, which was first launched in 1991, is set to be completed within the next four years.
The last phase of the development is Pantai Peak, the RM500-million project, featuring a 16ha gated community. It will offer 233 units of luxury three-storey hillside semi-detached homes and bungalows with a
variety of layouts and design options.
YTL also has more than 400ha of land in northern Perak.
"We had planned to build housing and a university on the land but things did not materialise. We have no plans yet to develop the land. It would take a few more years before we embark on anything," Yeoh said.
On the company's performance, Yeoh said there will be an improvement in the current financial year ending June 30 2010, thanks to the sales of higher margin products at Lake Edge, Puchong, and Sentul.
Last year, YTL Land made a net profit of RM3.3 million on revenue of RM279 million .
Thursday, November 12, 2009
MRCB: RM6b new projects at KL Sentral in the pipeline
By Sharen Kaur (Published in NST, Nov 12 2009)
MALAYSIAN Resources Corp Bhd (MRCB) has new projects worth some RM6 billion to launch at Kuala Lumpur Sentral (KL Sentral), the integrated transport hub in Brickfields, before the end of the development in 2015/ 2016.
Group managing director Shahril Ridza Ridzuan said MRCB, one of the country's biggest office space providers, will launch three million sq ft of space next year.
These would include room for two luxury serviced apartment towers, an office building, and the 6-star 200-room St Regis Hotel.
Shahril said the construction for St Regis will start by mid-2010, followed by the office building.
He said the two serviced apartments towers, worth almost RM900 million, will be launched towards the end of next year.
"We have land fronting Jalan Tun Sambanthan, which we are reserving for the final phase of the KL Sentral development. We are in the midst of deciding what we want to build on the land. A decision would be made around 2012," Shahril said in an interview with Business Times in Kuala Lumpur recently.
Currently, there are RM7 billion worth of on-going projects at KL Sentral, which would be completed between 2011 and 2012.
These includes Nu Sentral Mall, a business class hotel, three office towers, an office block for CIMB Investment Group, the KL Sentral park featuring low-rise high-end offices, and 348 Sentral, comprising a 33-storey office tower and 21-storey serviced residence.
Shahril said MRCB is in talks with international operators to manage the business class hotel.
On the three office towers, Shahril said one building with 27 floors will be taken up by Pelaburan Hartanah Bhd.
The two remaining towers will have Korean interest. They will provide capital under the Daol Trust & Fund Co Ltd (Daol Fund), he said. Daol Fund is Korea's first specialised real estate fund investment and management company.
"The structure will be similar to a real estate investment trust (REIT) where the Koreans will invests in the towers, and we would manage it for them for a few years."
On replicating KL Sentral, Shahril said while it would be difficult to do that in Kuala Lumpur due to scarcity of land, there is no doubt the development would be taken international.
He said MRCB is in talks with potential parties to replicate KL Sentral in the Middle East and Asia Pacific, including in China and India.
MALAYSIAN Resources Corp Bhd (MRCB) has new projects worth some RM6 billion to launch at Kuala Lumpur Sentral (KL Sentral), the integrated transport hub in Brickfields, before the end of the development in 2015/ 2016.
Group managing director Shahril Ridza Ridzuan said MRCB, one of the country's biggest office space providers, will launch three million sq ft of space next year.
These would include room for two luxury serviced apartment towers, an office building, and the 6-star 200-room St Regis Hotel.
Shahril said the construction for St Regis will start by mid-2010, followed by the office building.
He said the two serviced apartments towers, worth almost RM900 million, will be launched towards the end of next year.
"We have land fronting Jalan Tun Sambanthan, which we are reserving for the final phase of the KL Sentral development. We are in the midst of deciding what we want to build on the land. A decision would be made around 2012," Shahril said in an interview with Business Times in Kuala Lumpur recently.
Currently, there are RM7 billion worth of on-going projects at KL Sentral, which would be completed between 2011 and 2012.
These includes Nu Sentral Mall, a business class hotel, three office towers, an office block for CIMB Investment Group, the KL Sentral park featuring low-rise high-end offices, and 348 Sentral, comprising a 33-storey office tower and 21-storey serviced residence.
Shahril said MRCB is in talks with international operators to manage the business class hotel.
On the three office towers, Shahril said one building with 27 floors will be taken up by Pelaburan Hartanah Bhd.
The two remaining towers will have Korean interest. They will provide capital under the Daol Trust & Fund Co Ltd (Daol Fund), he said. Daol Fund is Korea's first specialised real estate fund investment and management company.
"The structure will be similar to a real estate investment trust (REIT) where the Koreans will invests in the towers, and we would manage it for them for a few years."
On replicating KL Sentral, Shahril said while it would be difficult to do that in Kuala Lumpur due to scarcity of land, there is no doubt the development would be taken international.
He said MRCB is in talks with potential parties to replicate KL Sentral in the Middle East and Asia Pacific, including in China and India.
MRCB mega project on drawing board
Malaysian Resources Corp Bhd (MRCB) (1651) plans to undertake its biggest development project ever in the Klang Valley by as early as next year.
The planned project is expected to dwarf MRCB's flagship Kuala Lumpur Sentral (KL Sentral) transport hub in Brickfields.
Group managing director Shahril Ridza Ridzuan said MRCB will use part of the RM566 million raised from a rights issue to buy land for the development.
"We are planning the next big thing after KL Sentral. It would be something more exciting and bigger than any of our existing projects," Shahril said.
KL Sentral is due to complete by 2015/2016.
"We are looking at a few plots of land. Depending on the land size and location, we will decide on the best development to do," Shahril said in an interview with Business Times in Kuala Lumpur recently.
He said the group is also buying land for new commercial and residential projects in 2010.
MRCB, which has RM7 billion worth of construction jobs in hand, has proposed to offer up to 483 million new shares at an issue price of RM1.172 each.
The fund-raising exercise is targeted for completion in the first quarter of next year.
MRCB will use some of the proceeds to fund the RM800 million
Nu Mall project at KL Sentral and expand its environmental engineering and infrastructure business.
For infrastructure development, Shahril said MRCB will bid for the RM7 billion Klang Valley Light Rail Transit (LRT) extension project.
He said tenders for pre-qualification will be out soon.
"We will bid for the project either as a whole package, or in smaller packages. It would depend on what the government wants," Shahril said.
MRCB is also trying to build up its asset portfolio.
It now manages three office towers at KL Sentral and one in Shah Alam. By 2011, it would manage four new towers at KL Sentral, currently under construction.
Shahril ruled out injecting the properties into a real estate investment trust (REIT).
"We are already doing a similar structure and concept as a REIT. We are managing properties for investors for a management fee. We like what we are doing and would build on that," he said.
Friday, October 30, 2009
SP Setia to develop RM2b mixed project in China
By Sharen Kaur (Published in NST on October 29 2009)SP SETIA Bhd, the country's biggest property developer, will develop a
RM2 billion mixed development project in XiaoShan, Hangzhou City in China, scheduled to begin in the first quarter of 2010.
This will be SP Setia's maiden project in China, in a joint venture (JV) with Chinese landowner, Hangzhou Ju Shen Construction Engineering Ltd (HJSCEL).
SP Setia, through its subsidiary Setia (Hangzhou) Development Co Ltd, holds a 55 per cent stake in the JV, while HJSCEL has a 45 per cent stake.
Work on the 10ha project will be completed in four phases over five years.
It features 11 residential towers, five office blocks, serviced apartments, a four-star hotel, a 300,000 sq ft retail mall and signature shops, said SP Setia president and chief executive officer Tan Sri Liew Kee Sin.
"We are awaiting for approvals from the Chinese authorities. We hope to get them by early 2010 and start Phase 1 of the project immediately," he said after the signing of the JV agreement with HJSCEL in Shah Alam, Selangor, yesterday.
The event was witnessed by Housing and Local Government Minister Datuk Kong Cho Ha.
"Phase 1 includes commercial properties and service apartments worth RM500 million," Liew said.
"We are not looking at borrowings as it is a self-funded project. We are developing the properties on a sell-and-build concept," he added.
However, it will retain the mall to control its tenant mix.
The service apartments will be pegged at RM400-RM500 per sq ft, while the commercial properties will go for RM500 per sq ft onwards.
"Our first income from this project will come in two years. The project will contribute positively to the future earnings and cash flow of SP Setia. It will also tell the world that we are ready to be an international property player," Liew said.
Liew said SP Setia is in talks with other landowners in China to form JVs, with priority to develop in Hangzhou.
He added that the company has a five-year plan to get 30 per cent of its net profit and revenue from overseas projects by 2014, from 2-3 per cent currently.
"We will focus on Vietnam and China for the next few years."
RM2 billion mixed development project in XiaoShan, Hangzhou City in China, scheduled to begin in the first quarter of 2010.
This will be SP Setia's maiden project in China, in a joint venture (JV) with Chinese landowner, Hangzhou Ju Shen Construction Engineering Ltd (HJSCEL).
SP Setia, through its subsidiary Setia (Hangzhou) Development Co Ltd, holds a 55 per cent stake in the JV, while HJSCEL has a 45 per cent stake.
Work on the 10ha project will be completed in four phases over five years.
It features 11 residential towers, five office blocks, serviced apartments, a four-star hotel, a 300,000 sq ft retail mall and signature shops, said SP Setia president and chief executive officer Tan Sri Liew Kee Sin.
"We are awaiting for approvals from the Chinese authorities. We hope to get them by early 2010 and start Phase 1 of the project immediately," he said after the signing of the JV agreement with HJSCEL in Shah Alam, Selangor, yesterday.
The event was witnessed by Housing and Local Government Minister Datuk Kong Cho Ha.
"Phase 1 includes commercial properties and service apartments worth RM500 million," Liew said.
"We are not looking at borrowings as it is a self-funded project. We are developing the properties on a sell-and-build concept," he added.
However, it will retain the mall to control its tenant mix.
The service apartments will be pegged at RM400-RM500 per sq ft, while the commercial properties will go for RM500 per sq ft onwards.
"Our first income from this project will come in two years. The project will contribute positively to the future earnings and cash flow of SP Setia. It will also tell the world that we are ready to be an international property player," Liew said.
Liew said SP Setia is in talks with other landowners in China to form JVs, with priority to develop in Hangzhou.
He added that the company has a five-year plan to get 30 per cent of its net profit and revenue from overseas projects by 2014, from 2-3 per cent currently.
"We will focus on Vietnam and China for the next few years."
SunCity to take part in RM2.5b China project
By Sharen Kaur (Published in NST on October 28 2009)
SUNWAY City Bhd (SunCity) has signed a joint-venture agreement with Sino-Singapore Tianjin Eco-City Investment and Development Co Ltd (SSTEC) to undertake a RM2.5 billion mixed development in Tianjin, China.
However, implementation of the project is subject to a feasibility study.
The massive 3,000ha Tianjin Eco-City, which is worth several billion ringgit, will be developed in three phases from 2011.
SunCity will develop part of the second phase, covering 41ha, with SSTEC.
Sunway Group founder and chairman Tan Sri Dr Jeffrey Cheah said that a joint-venture company, led by SunCity, will be set up after the study is completed.
The joint-venture company will build bungalows, villas, semi-detached and terraced houses, high-rise residences and commercial properties, including a shopping mall, on less than 20ha. The rest will be kept green.
"We are very confident of this project as it is driven by the Chinese and Singaporean government. SSTEC has attracted the largest and best eco-developers in Asia. This proves the project will happen," said Cheah.
He was speaking at a press conference yesterday in Bandar Sunway, Selangor, after inking an agreement with SSTEC to carry out the study and market research, and to come up with a sustainable business model for the project within six months.
The developers include China's Shimao Group, Japan's Mitsui Fudosan and Taiwan's Farglory Group, which are involved in the first phase of Tianjin Eco-City.
"The main thing is to get the right product so the development can run.
The next six months is very crucial. We will plan the 41ha properly to come up with a sustainable, workable and viable development," Cheah said.
He added that the project will be funded by equity and bridging finance.
Part of the funding will also come from a real estate investment trust (REIT) that SunCity is planning to launch in the next one to two years.
SSTEC is the master developer of Tianjin Eco-City. It is a 50:50 joint venture between the Chinese consortium led by Tianjin TEDA Investment Holding Co Ltd and the Singapore consortium led by the Keppel group.
Tianjin Eco-City is a landmark bilateral project between China and Singapore with private-sector investment and development. When completed, it will have 26,500 households.
SSTEC chief executive officer Goh Chye Boon said it was targeting reputable developers from the project to work with when it embarks on new projects in China.
"We want to make sure Tianjin Eco-City is sustainable so we can replicate the development in other parts of China. We are looking for bigger land now," Goh said, adding that SunCity may be given more jobs in
Tianjin Eco-City.
He said SunCity may also be roped in to work on other projects that the Chinese and Singaporean consortiums are eyeing in China, Indonesia, Vietnam and India.
SUNWAY City Bhd (SunCity) has signed a joint-venture agreement with Sino-Singapore Tianjin Eco-City Investment and Development Co Ltd (SSTEC) to undertake a RM2.5 billion mixed development in Tianjin, China.
However, implementation of the project is subject to a feasibility study.
The massive 3,000ha Tianjin Eco-City, which is worth several billion ringgit, will be developed in three phases from 2011.
SunCity will develop part of the second phase, covering 41ha, with SSTEC.
Sunway Group founder and chairman Tan Sri Dr Jeffrey Cheah said that a joint-venture company, led by SunCity, will be set up after the study is completed.
The joint-venture company will build bungalows, villas, semi-detached and terraced houses, high-rise residences and commercial properties, including a shopping mall, on less than 20ha. The rest will be kept green.
"We are very confident of this project as it is driven by the Chinese and Singaporean government. SSTEC has attracted the largest and best eco-developers in Asia. This proves the project will happen," said Cheah.
He was speaking at a press conference yesterday in Bandar Sunway, Selangor, after inking an agreement with SSTEC to carry out the study and market research, and to come up with a sustainable business model for the project within six months.
The developers include China's Shimao Group, Japan's Mitsui Fudosan and Taiwan's Farglory Group, which are involved in the first phase of Tianjin Eco-City.
"The main thing is to get the right product so the development can run.
The next six months is very crucial. We will plan the 41ha properly to come up with a sustainable, workable and viable development," Cheah said.
He added that the project will be funded by equity and bridging finance.
Part of the funding will also come from a real estate investment trust (REIT) that SunCity is planning to launch in the next one to two years.
SSTEC is the master developer of Tianjin Eco-City. It is a 50:50 joint venture between the Chinese consortium led by Tianjin TEDA Investment Holding Co Ltd and the Singapore consortium led by the Keppel group.
Tianjin Eco-City is a landmark bilateral project between China and Singapore with private-sector investment and development. When completed, it will have 26,500 households.
SSTEC chief executive officer Goh Chye Boon said it was targeting reputable developers from the project to work with when it embarks on new projects in China.
"We want to make sure Tianjin Eco-City is sustainable so we can replicate the development in other parts of China. We are looking for bigger land now," Goh said, adding that SunCity may be given more jobs in
Tianjin Eco-City.
He said SunCity may also be roped in to work on other projects that the Chinese and Singaporean consortiums are eyeing in China, Indonesia, Vietnam and India.
KL Metro plans to launch projects worth RM300m
By Sharen Kaur (Published in NST on October 28 2009)
BOUTIQUE property developer Kuala Lumpur Metro Group will launch two resort developments and a housing project worth a combined RM300 million in Port Dickson, Bangi, and Penang, over the next eight months.
The low-profile group, which made a mark in property development when it launched its landmark project - the Legend International Water Homes in Port Dickson in 2003, is also planning to expand into China and
Vietnam.
"We are looking at resort developments in China and Vietnam. We believe there is a market for resort-type products. We have identified the local partners, but plans are still preliminary," said KL Metro managing
director Datuk Low Tak Fatt.
Locally, KL Metro will launch Phase 3 of the Legend Water Homes valued at RM45 million and 30 units of semi-detached houses in Bangi, worth RM25 million, by December.
By mid-2010, KL Metro will launch The Hibiscus in Penang, which features 460 units of five-star water homes at Teluk Kumbar.
The Penang development is worth some RM200 million and KL Metro is targeting buyers from Asia Pacific, Europe and the Middle East.
"Demand for water homes in Malaysia is greater than supply so we expect our projects to do very well," Low told a media briefing on the second phase of its Legend Water Homes in Kuala Lumpur yesterday.
Phase 2, which will open on November 1, offers 166 water homes, 44 garden chalets and 39 sky pool villas.
Priced from RM400,000 to RM700,000 each, some RM160 million or 99 per cent of the properties have been sold, Low said.
Majority of the buyers were from the Hong Kong, Singapore, Macau, the Middle East and some European countries, with an option to lease back at an 8 per cent gross rental income return a year.
Low said he expects 50 per cent occupancy in the first year, with average promotional room rates starting from RM550 per night to RM900.
He said KL Metro is aiming for occupancy to grow by 10 per cent per year via aggressive marketing.
"Despite the downturn of the economy and credit crunch worldwide, we still managed to complete Phase 2 three months ahead and sell all the units. We are proud of this development," Low said.
Phase 1, which has 329 units, was completed in 2006 and fully sold within two years.
The Balinese-themed resort took the "Best Architecture" and "Best Development" titles at the CNBC International Property Awards in London in 2007.
BOUTIQUE property developer Kuala Lumpur Metro Group will launch two resort developments and a housing project worth a combined RM300 million in Port Dickson, Bangi, and Penang, over the next eight months.
The low-profile group, which made a mark in property development when it launched its landmark project - the Legend International Water Homes in Port Dickson in 2003, is also planning to expand into China and
Vietnam.
"We are looking at resort developments in China and Vietnam. We believe there is a market for resort-type products. We have identified the local partners, but plans are still preliminary," said KL Metro managing
director Datuk Low Tak Fatt.
Locally, KL Metro will launch Phase 3 of the Legend Water Homes valued at RM45 million and 30 units of semi-detached houses in Bangi, worth RM25 million, by December.
By mid-2010, KL Metro will launch The Hibiscus in Penang, which features 460 units of five-star water homes at Teluk Kumbar.
The Penang development is worth some RM200 million and KL Metro is targeting buyers from Asia Pacific, Europe and the Middle East.
"Demand for water homes in Malaysia is greater than supply so we expect our projects to do very well," Low told a media briefing on the second phase of its Legend Water Homes in Kuala Lumpur yesterday.
Phase 2, which will open on November 1, offers 166 water homes, 44 garden chalets and 39 sky pool villas.
Priced from RM400,000 to RM700,000 each, some RM160 million or 99 per cent of the properties have been sold, Low said.
Majority of the buyers were from the Hong Kong, Singapore, Macau, the Middle East and some European countries, with an option to lease back at an 8 per cent gross rental income return a year.
Low said he expects 50 per cent occupancy in the first year, with average promotional room rates starting from RM550 per night to RM900.
He said KL Metro is aiming for occupancy to grow by 10 per cent per year via aggressive marketing.
"Despite the downturn of the economy and credit crunch worldwide, we still managed to complete Phase 2 three months ahead and sell all the units. We are proud of this development," Low said.
Phase 1, which has 329 units, was completed in 2006 and fully sold within two years.
The Balinese-themed resort took the "Best Architecture" and "Best Development" titles at the CNBC International Property Awards in London in 2007.
Tuesday, October 20, 2009
KTMB president raises net profit target to RM1m
By Sharen Kaur (Published in NST on October 9 2009)
THE new chief of Keretapi Tanah Melayu Bhd (KTMB) has raised the national railway company's net profit target this year to RM1 million, much higher than his predecessor's aim of just RM1.
President Dr Aminuddin Adnan, who started on August 1 this year, felt that the target could be met after a restructuring of KTMB's government loans and streamlining of operations.
KTMB expects capacity to increase by a quarter from next month, helped by its revamped commuter train schedule, he said in an interview with Business Times in Kuala Lumpur yesterday.
It will now run more trains in high-density sectors, increasing its current ridership of 100,000 a day by 10 per cent.
"We have a new organisation chart. We are streamlining our strategic business units and will reorganise KTMB to be more efficient in its service.
"I hope KTMB can deliver its results for better services, connectivity, collecting higher revenue and making money," Aminuddin said.
KTMB's previous managing director, Datuk Abd Radzak Abd Malek, who was in charge for less than a year after being terminated by the government in July, was targeting a RM1 net profit on revenue of RM400 million this year.
He wanted to improve business by cutting operating costs by 30 per cent.
He was also expecting RM200 million from the freight business, RM100 million from its KTM Komuter service and RM100 million from intercity rail service, property investment and advertisements.
The RM1 million net profit target by Aminuddin would be KTMB's first earnings in 14 years.
KTMB has been bleeding red ink since it was corporatised in 1992 due to high operating costs.
Nevertheless, it did make a net profit of RM9 million to RM15 million from 1993 to 1995, before falling into the red again in the following years.
In 2007, the group posted a net loss of RM116.1 million on revenue of RM349.2 million.
It is learnt that for 2008, KTMB posted an unaudited loss of around RM150 million on lower revenue.
KTMB is still suffering from high operating costs of around RM200 million a year despite efforts to lower expenditure by cutting manpower and stopping money-losing operations.
Aminuddin said KTMB was banking on new business from April next year, after taking delivery of the six-car electric train sets (ETS) from Korea.
The government had ordered five ETS two years ago for some RM250 million from Japan's Marubeni to service the Ipoh-Rawang double-tracks.
The first set will be delivered by next month, and the rest by February next year.
THE new chief of Keretapi Tanah Melayu Bhd (KTMB) has raised the national railway company's net profit target this year to RM1 million, much higher than his predecessor's aim of just RM1.
President Dr Aminuddin Adnan, who started on August 1 this year, felt that the target could be met after a restructuring of KTMB's government loans and streamlining of operations.
KTMB expects capacity to increase by a quarter from next month, helped by its revamped commuter train schedule, he said in an interview with Business Times in Kuala Lumpur yesterday.
It will now run more trains in high-density sectors, increasing its current ridership of 100,000 a day by 10 per cent.
"We have a new organisation chart. We are streamlining our strategic business units and will reorganise KTMB to be more efficient in its service.
"I hope KTMB can deliver its results for better services, connectivity, collecting higher revenue and making money," Aminuddin said.
KTMB's previous managing director, Datuk Abd Radzak Abd Malek, who was in charge for less than a year after being terminated by the government in July, was targeting a RM1 net profit on revenue of RM400 million this year.
He wanted to improve business by cutting operating costs by 30 per cent.
He was also expecting RM200 million from the freight business, RM100 million from its KTM Komuter service and RM100 million from intercity rail service, property investment and advertisements.
The RM1 million net profit target by Aminuddin would be KTMB's first earnings in 14 years.
KTMB has been bleeding red ink since it was corporatised in 1992 due to high operating costs.
Nevertheless, it did make a net profit of RM9 million to RM15 million from 1993 to 1995, before falling into the red again in the following years.
In 2007, the group posted a net loss of RM116.1 million on revenue of RM349.2 million.
It is learnt that for 2008, KTMB posted an unaudited loss of around RM150 million on lower revenue.
KTMB is still suffering from high operating costs of around RM200 million a year despite efforts to lower expenditure by cutting manpower and stopping money-losing operations.
Aminuddin said KTMB was banking on new business from April next year, after taking delivery of the six-car electric train sets (ETS) from Korea.
The government had ordered five ETS two years ago for some RM250 million from Japan's Marubeni to service the Ipoh-Rawang double-tracks.
The first set will be delivered by next month, and the rest by February next year.
EON Bank aims to lead mid-size pack
By Sharen Kaur (Published in NST on October 2009)
EON Bank Bhd's new chief says he plans to turn the country's seventh biggest lender by assets into a leader among its medium-sized banks.
Group chief executive officer (CEO) Michael Lor Chee Leng said he wants to grow hire purchase loans, home loans and loans to small- and medium-scale enterprises.
Lor told Business Times in an e-mail interview that he will also refine the group's investment banking offerings and make use of its treasury for additional sources of income.
"We recognise that we are a local bank in our origins and presence. But we will be one that offers Malaysians world-class services and products," he said.
Lor, who was previously EON Bank's head of group consumer banking, was promoted to the post of group CEO, filling the vacancy left by his predecessor Albert Lau Yiong, who retired earlier this year.
Lor joined EON Bank in February last year and was responsible for growing its consumer banking business.
He said EON Bank's consumer banking division could grow by 8 per cent this year, contributing around 5 per cent to a group-wide growth rate.
"We consider this quite positive given how the overall economy has been performing," Lor said.
The lender also has "healthy control" of non-performing loans (NPL).
"We continue to close the gap with the industry with our gross NPL ratio dropping to 4.5 per cent. The net NPL ratio now stands at 2.7 per cent and we have raised our loan loss coverage to over 80 per cent," he
said.
Lor, who has more than 20 years experience in the banking industry across Asean, was a worldwide director of banking solutions with Hewlett-Packard Asia-Pacific's financial service industry segment.
Prior to that, he was the executive vice-president and head of consumer banking at RHB Bank.
When asked if he would use the same strategies as his predecessor, Lor said there would be a few changes.
"I won't necessarily say I will have a different strategy compared to Lau. I think we should complete the few things we started, such as our Project Quantum Leap, and other transformation initiatives as a lot of good will come out of that.
"There are a few things that will be different. Some changes might come from my working style and personality. Other initiatives will be those that will seek to build on the progress and success we have already enjoyed thus far," Lor said.
What is important is that the bank focuses on its target customers first before it can consider grand ambitions, he added.
On plans to give EON Bank a new name to better reflect its aspiration, Lor said such a move was still pending.
"This requires approval from regulators. However, I can say that any rebranding effort must be complete from the inside out. A change of identity will be effective only if our internal personnel, products and processes can deliver on any brand promise.
"For us, a new identity will be the icing on the cake that has already been baked to perfection," he said.
EON Bank Bhd's new chief says he plans to turn the country's seventh biggest lender by assets into a leader among its medium-sized banks.
Group chief executive officer (CEO) Michael Lor Chee Leng said he wants to grow hire purchase loans, home loans and loans to small- and medium-scale enterprises.
Lor told Business Times in an e-mail interview that he will also refine the group's investment banking offerings and make use of its treasury for additional sources of income.
"We recognise that we are a local bank in our origins and presence. But we will be one that offers Malaysians world-class services and products," he said.
Lor, who was previously EON Bank's head of group consumer banking, was promoted to the post of group CEO, filling the vacancy left by his predecessor Albert Lau Yiong, who retired earlier this year.
Lor joined EON Bank in February last year and was responsible for growing its consumer banking business.
He said EON Bank's consumer banking division could grow by 8 per cent this year, contributing around 5 per cent to a group-wide growth rate.
"We consider this quite positive given how the overall economy has been performing," Lor said.
The lender also has "healthy control" of non-performing loans (NPL).
"We continue to close the gap with the industry with our gross NPL ratio dropping to 4.5 per cent. The net NPL ratio now stands at 2.7 per cent and we have raised our loan loss coverage to over 80 per cent," he
said.
Lor, who has more than 20 years experience in the banking industry across Asean, was a worldwide director of banking solutions with Hewlett-Packard Asia-Pacific's financial service industry segment.
Prior to that, he was the executive vice-president and head of consumer banking at RHB Bank.
When asked if he would use the same strategies as his predecessor, Lor said there would be a few changes.
"I won't necessarily say I will have a different strategy compared to Lau. I think we should complete the few things we started, such as our Project Quantum Leap, and other transformation initiatives as a lot of good will come out of that.
"There are a few things that will be different. Some changes might come from my working style and personality. Other initiatives will be those that will seek to build on the progress and success we have already enjoyed thus far," Lor said.
What is important is that the bank focuses on its target customers first before it can consider grand ambitions, he added.
On plans to give EON Bank a new name to better reflect its aspiration, Lor said such a move was still pending.
"This requires approval from regulators. However, I can say that any rebranding effort must be complete from the inside out. A change of identity will be effective only if our internal personnel, products and processes can deliver on any brand promise.
"For us, a new identity will be the icing on the cake that has already been baked to perfection," he said.
KTM to buy 4 used trains from Spain
By Sharen Kaur (Published in NST on October 19 2009)
KERETAPI Melayu Bhd (KTMB) plans to buy four second-hand two-car diesel multiple units (DMUs) from Spain for RM28 million.
The national railway company is believed to have opted for second-hand DMUs due to cash constraints.
A DMU is a multiple-unit train comprising multiple carriages powered by one or more onboard diesel engines.
The DMUs, which have been in operation for the past 30 years, are expected to be delivered in two months and be used as a stop-game measure to solve KTM's current commuter woes.
However, industry sources said KTMB should be buying new three-car electrical multiple units (EMUs) to be efficient, instead of second-hand DMUs.
An EMU is a multiple unit train consisting many carriages and powered by electricity. A new three-car EMU set costs RM18 million to RM20 million.
"More cost would be incurred to refurbish the DMUs after a few years in service," the source said.
The source added that for KTMB to be more productive, it should have 112 three-car EMUs, running on a 10-minute interval.
The company currently has 66 EMUs, including 16 which are beyond repairs, either because they have aged or were involved in accidents.
KTMB is overhauling the remaining 50 EMUs at an estimated cost of RM400 million to RM500 million.
It has overhauled 20 EMUs, which are in operation now. Another five EMUs are being refurbished and will be ready by the middle of next year.
KTMB president Dr Aminuddin Adnan told Business Times it is buying the DMUs to service the KTM commuter routes in the Klang Valley and later deploy them to high demand areas in the east coast.
"We are expanding our fleet of trains to improve our intercity, freight and commuter business. Currently, demand is higher than capacity," Aminuddin said.
He said KTMB's current ridership per day is 100,000, but this could increase by more than 15 to 20 per cent wi"h more trains running.
"We have customers, like YTL Cement and Lafarge Cement, increasing their business with us. So we do need trains. Second-hand trains are not only cheaper, they can also be delivered faster," he said.
"While we have government support, we are trying to expand first within our scope," Aminuddin said.
Aminuddin said by mid-2010, KTMB will have 34 trains running, from 20 EMUs currently.
This would include the five DMUs and five EMUs that are under refurbishment.
KERETAPI Melayu Bhd (KTMB) plans to buy four second-hand two-car diesel multiple units (DMUs) from Spain for RM28 million.
The national railway company is believed to have opted for second-hand DMUs due to cash constraints.
A DMU is a multiple-unit train comprising multiple carriages powered by one or more onboard diesel engines.
The DMUs, which have been in operation for the past 30 years, are expected to be delivered in two months and be used as a stop-game measure to solve KTM's current commuter woes.
However, industry sources said KTMB should be buying new three-car electrical multiple units (EMUs) to be efficient, instead of second-hand DMUs.
An EMU is a multiple unit train consisting many carriages and powered by electricity. A new three-car EMU set costs RM18 million to RM20 million.
"More cost would be incurred to refurbish the DMUs after a few years in service," the source said.
The source added that for KTMB to be more productive, it should have 112 three-car EMUs, running on a 10-minute interval.
The company currently has 66 EMUs, including 16 which are beyond repairs, either because they have aged or were involved in accidents.
KTMB is overhauling the remaining 50 EMUs at an estimated cost of RM400 million to RM500 million.
It has overhauled 20 EMUs, which are in operation now. Another five EMUs are being refurbished and will be ready by the middle of next year.
KTMB president Dr Aminuddin Adnan told Business Times it is buying the DMUs to service the KTM commuter routes in the Klang Valley and later deploy them to high demand areas in the east coast.
"We are expanding our fleet of trains to improve our intercity, freight and commuter business. Currently, demand is higher than capacity," Aminuddin said.
He said KTMB's current ridership per day is 100,000, but this could increase by more than 15 to 20 per cent wi"h more trains running.
"We have customers, like YTL Cement and Lafarge Cement, increasing their business with us. So we do need trains. Second-hand trains are not only cheaper, they can also be delivered faster," he said.
"While we have government support, we are trying to expand first within our scope," Aminuddin said.
Aminuddin said by mid-2010, KTMB will have 34 trains running, from 20 EMUs currently.
This would include the five DMUs and five EMUs that are under refurbishment.
Improve housing approval process
By Sharen Kaur (Published in NST on October 19 2009)
THE government should give incentives for first-time house buyers, review its policy on low-cost housing and improve the approval process, says YTL Land & Development Bhd.
These are some of the property developer's suggestions for the upcoming Budget 2010, which will be presented on Friday.
Currently, there are no incentives for first-time buyers although the industry has lobbied for it since last year.
Fiabci, an international real estate federation, has asked the government for grants of up to RM10,000.
YTL Land executive director Datuk Yeoh Seok Kian also held the view that the government should examine what he termed as unhealthy competition in the high-end residential market.
State firms like the Selangor State Development Corp (PKNS) are building houses priced at more than RM800,000 each.
He argued that PKNS should stick to providing social housing instead of competing with the private sector.
"This will certainly improve the overall well-being of deserving Malaysians faced with financial difficulties. A lot more can be provided for at the end of the day and the responsibility should not only fall on private developers," Yeoh told Business Times.
Under current policy, 30 per cent of a developer's residential project must be low-cost housing.
Yeoh also hopes that the government will improve the approval process for new development projects.
"This is one of the challenges we continue to face. While the government has acknowledged this as an issue with the set-up of the One-Stop Centre (OSC) in 2007, there should be better follow-through to ensure all parties are working towards the same intent," he said.
Yeoh said delays caused by unnecessary red tape and bureaucracy could be reduced with better enforcement and regulation.
"Ongoing reviews of policies can play a major role in helping the property sector stay robust and competitive," he added.
THE government should give incentives for first-time house buyers, review its policy on low-cost housing and improve the approval process, says YTL Land & Development Bhd.
These are some of the property developer's suggestions for the upcoming Budget 2010, which will be presented on Friday.
Currently, there are no incentives for first-time buyers although the industry has lobbied for it since last year.
Fiabci, an international real estate federation, has asked the government for grants of up to RM10,000.
YTL Land executive director Datuk Yeoh Seok Kian also held the view that the government should examine what he termed as unhealthy competition in the high-end residential market.
State firms like the Selangor State Development Corp (PKNS) are building houses priced at more than RM800,000 each.
He argued that PKNS should stick to providing social housing instead of competing with the private sector.
"This will certainly improve the overall well-being of deserving Malaysians faced with financial difficulties. A lot more can be provided for at the end of the day and the responsibility should not only fall on private developers," Yeoh told Business Times.
Under current policy, 30 per cent of a developer's residential project must be low-cost housing.
Yeoh also hopes that the government will improve the approval process for new development projects.
"This is one of the challenges we continue to face. While the government has acknowledged this as an issue with the set-up of the One-Stop Centre (OSC) in 2007, there should be better follow-through to ensure all parties are working towards the same intent," he said.
Yeoh said delays caused by unnecessary red tape and bureaucracy could be reduced with better enforcement and regulation.
"Ongoing reviews of policies can play a major role in helping the property sector stay robust and competitive," he added.
Thursday, October 8, 2009
RM28bil rail plan
By Sharen Kaur (Published in NST on October 9 2009)
PRIVATELY-HELD Global Rail Sdn Bhd and its partner from China have jointly submitted a RM28 billion proposal to develop a high-speed railway and inter-modal freight system in Malaysia, linking economic corridors to major airports and seaports.
Global Rail managing director Fan Boon Heng said the proposal was submitted on September 28 to the Ministry of Finance, the Economic Planning Unit and the Johor Menteri Besar.
The project is a private finance initiative (PFI) with China Infraglobe Consortium, a global infrastructure development and logistics specialist.
Fan said China Infraglobe has the financing in place to fully fund the project, which will be implemented in four phases over 10 years.
He said the financial mechanism will be crafted such that the local government will have a total cost capped for the whole project and risks will be allocated to the parties best able to manage them.
"It will free up the current government funds for public spending in other areas," he told Business Times in an interview.
Fan said the implementation of the project to lay electrified double tracks will start from Iskandar Malaysia in Johor.
Under the first phase, the parties involved will lay the tracks from Johor Baru to Gemas, while under Phase 2, the tracks will run from Gemas to Tumpat in Kelantan.
Phase 3 will start from Kluang, with connections to the KL International Airport, Port Klang and the Port Klang Free Zone (PKFZ) in Selangor.
The fourth phase will be from PKFZ to Perlis and up to the Thai border.
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"We will call for tenders for local participation on the civil works, building of stations and yard facilities after we get the green light from the government. China Infraglobe will work with a European group on the systems portion," Fan said.
The proposal is in line with the government's 2020 National Physical Plan on Transportation.
"This development plan will transform Malaysia into a regional logistics hub for Asean and be the southern gateway to the overland logistics rapid freight system for China and Europe," Fan added.
It is also expected to propel Keretapi Tanah Melayu Bhd into a major logistics and industrial corporation, enhancing and augmenting its role as a national rail and logistics services provider in passenger and freight services.
Global Rail, set up in July last year, was founded by Fan, who previously headed ABB Daimler-Benz Transportation and, later, Balfour Beatty Rail Sdn Bhd for over 15 years.
It already has jobs from Road Builder Sdn Bhd for electrification for a railway project in Batu Gajah, Perak, and from YTL Corp Bhd to supply automatic train protection system and railway point machines for its Sentul-Batu Caves railway project.
PRIVATELY-HELD Global Rail Sdn Bhd and its partner from China have jointly submitted a RM28 billion proposal to develop a high-speed railway and inter-modal freight system in Malaysia, linking economic corridors to major airports and seaports.
Global Rail managing director Fan Boon Heng said the proposal was submitted on September 28 to the Ministry of Finance, the Economic Planning Unit and the Johor Menteri Besar.
The project is a private finance initiative (PFI) with China Infraglobe Consortium, a global infrastructure development and logistics specialist.
Fan said China Infraglobe has the financing in place to fully fund the project, which will be implemented in four phases over 10 years.
He said the financial mechanism will be crafted such that the local government will have a total cost capped for the whole project and risks will be allocated to the parties best able to manage them.
"It will free up the current government funds for public spending in other areas," he told Business Times in an interview.
Fan said the implementation of the project to lay electrified double tracks will start from Iskandar Malaysia in Johor.
Under the first phase, the parties involved will lay the tracks from Johor Baru to Gemas, while under Phase 2, the tracks will run from Gemas to Tumpat in Kelantan.
Phase 3 will start from Kluang, with connections to the KL International Airport, Port Klang and the Port Klang Free Zone (PKFZ) in Selangor.
The fourth phase will be from PKFZ to Perlis and up to the Thai border.
"We will call for tenders for local participation on the civil works, building of stations and yard facilities after we get the green light from the government. China Infraglobe will work with a European group on the systems portion," Fan said.
The proposal is in line with the government's 2020 National Physical Plan on Transportation.
"This development plan will transform Malaysia into a regional logistics hub for Asean and be the southern gateway to the overland logistics rapid freight system for China and Europe," Fan added.
It is also expected to propel Keretapi Tanah Melayu Bhd into a major logistics and industrial corporation, enhancing and augmenting its role as a national rail and logistics services provider in passenger and freight services.
Global Rail, set up in July last year, was founded by Fan, who previously headed ABB Daimler-Benz Transportation and, later, Balfour Beatty Rail Sdn Bhd for over 15 years.
It already has jobs from Road Builder Sdn Bhd for electrification for a railway project in Batu Gajah, Perak, and from YTL Corp Bhd to supply automatic train protection system and railway point machines for its Sentul-Batu Caves railway project.
Tuesday, October 6, 2009
Bina Puri sees 20pc growth in net profit, revenue
By Sharen Kaur (Published in NST on October 5 2009)
BINA Puri Holdings Bhd expects net profit and revenue to grow by as much as 20 per cent in the current year, helped by some RM1.15 billion of new jobs it has won this year, and also from contributions of existing works.
It has RM2.4 billion worth of projects in hand, which have yet to be booked into its accounts, group managing director Tan Sri Tee Hock Seng said.
For fiscal 2008, Bina Puri posted a net profit of RM4.3 million on revenue of RM676 million.
Bina Puri has been profitable since its establishment in 1975 and its revenue has been growing steadily by 10 to 15 per cent, especially after listing in 1995.
Its net profit has always been single-digit, but Bina Puri is now aiming for double- digit earnings.
"This year would definitely be better for Bina Puri. The price of raw materials have stabilised and the projects in hand are starting to contribute significantly to our earnings. A lot of our projects are fast track," Tee told Business Times.
He said the most significant contribution in the future will be from its Kuala Lumpur-Kuala Selangor Expressway (KSE) project, which it expects to complete by mid-2011.
The company holds the design-and-build contract, worth almost RM1 billion, for the KSE Package 1 and 2 and it will start to contribute to earnings from 2015.
Bina Puri was founded by Dr Tony Tan Cheng Kiat, who is related to Tee, and his partner. Tee was roped into Bina Puri in 1983.
Both Tan and Tee hold 37 per cent of Bina Puri while Bumimaju Mawar Sdn Bhd, controlled by Tan Sri Tong Yoke Kim and son Datuk Andrew Tong So Han, holds 19.27 per cent stake.
Bina Puri started with a small building contract for the police station and staff quarters in Kepong for the Public Works Department.
It evolved from a class "BX" licence contractor to class "A" industry leader in September 1985.
The company expanded its business activities in 1995 to include property development, highway concessionaire, quarry operations, manufacturing of construction materials and polyurethane system house.
Its first overseas venture was in 1999 and it has since completed many highway and housing projects in India, China, Nepal and Thailand.
BINA Puri Holdings Bhd expects net profit and revenue to grow by as much as 20 per cent in the current year, helped by some RM1.15 billion of new jobs it has won this year, and also from contributions of existing works.
It has RM2.4 billion worth of projects in hand, which have yet to be booked into its accounts, group managing director Tan Sri Tee Hock Seng said.
For fiscal 2008, Bina Puri posted a net profit of RM4.3 million on revenue of RM676 million.
Bina Puri has been profitable since its establishment in 1975 and its revenue has been growing steadily by 10 to 15 per cent, especially after listing in 1995.
Its net profit has always been single-digit, but Bina Puri is now aiming for double- digit earnings.
"This year would definitely be better for Bina Puri. The price of raw materials have stabilised and the projects in hand are starting to contribute significantly to our earnings. A lot of our projects are fast track," Tee told Business Times.
He said the most significant contribution in the future will be from its Kuala Lumpur-Kuala Selangor Expressway (KSE) project, which it expects to complete by mid-2011.
The company holds the design-and-build contract, worth almost RM1 billion, for the KSE Package 1 and 2 and it will start to contribute to earnings from 2015.
Bina Puri was founded by Dr Tony Tan Cheng Kiat, who is related to Tee, and his partner. Tee was roped into Bina Puri in 1983.
Both Tan and Tee hold 37 per cent of Bina Puri while Bumimaju Mawar Sdn Bhd, controlled by Tan Sri Tong Yoke Kim and son Datuk Andrew Tong So Han, holds 19.27 per cent stake.
Bina Puri started with a small building contract for the police station and staff quarters in Kepong for the Public Works Department.
It evolved from a class "BX" licence contractor to class "A" industry leader in September 1985.
The company expanded its business activities in 1995 to include property development, highway concessionaire, quarry operations, manufacturing of construction materials and polyurethane system house.
Its first overseas venture was in 1999 and it has since completed many highway and housing projects in India, China, Nepal and Thailand.
Bina Puri working hard to fatten up its order book
By Sharen Kaur (Published in NST on October 5 2009)
BINA Puri Holdings Bhd, one of Malaysia's largest construction groups with RM4.2 billion jobs in hand, will continue to aggressively tender for new projects to sustain growth in earnings and bring the group to a higher level.
It has ongoing projects in Malaysia, Pakistan, Thailand, Brunei and Abu Dhabi, but is aiming for more work in the existing markets to keep its business in the local and overseas sectors moving, group managing director Tan Sri Tee Hock Seng said.
Tee said in an interview with Business Times recently that it will submit bids for construction projects worth more than RM2 billion a year.
Bina Puri, involved in construction, property, highway concession, quarry and manufacturing, is targeting public and private sector projects.
Locally, it is looking to bid for jobs from the new permanent low-cost carrier terminal (LCCT) in Sepang, the light rail transit (LRT) extension works, road and highway projects, housing and building construction.
"There are a lot more projects to award under the Ninth Malaysia Plan. Many have not been executed as a lot of time is spent negotiating and finalising details of the contracts with the relevant ministries, before the letters of award are issued," Tee said.
Tee said as the company will be finishing some of its projects in Pakistan, Abu Dhabi and Thailand over the next three to eight months, it is working hard to replenish its order book.
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Project in Abu Dhabi
Tee added that Bina Puri should be able to secure more than 30 per cent of the bids as its proposals are usually more competitive and it has strong networking.
He said the group has letters of intent for four projects now, worth RM410 million, and it is working to convert them into letters of award soon.
This year alone it has won projects in Malaysia, Brunei and Pakistan to the tune of RM1.15 billion. Its biggest win was a RM693 million job to build 2,000 houses in Brunei.
In 2006 and 2007, Bina Puri secured projects worth RM1.6 billion and RM1.42 billion respectively.
BINA Puri Holdings Bhd, one of Malaysia's largest construction groups with RM4.2 billion jobs in hand, will continue to aggressively tender for new projects to sustain growth in earnings and bring the group to a higher level.
It has ongoing projects in Malaysia, Pakistan, Thailand, Brunei and Abu Dhabi, but is aiming for more work in the existing markets to keep its business in the local and overseas sectors moving, group managing director Tan Sri Tee Hock Seng said.
Tee said in an interview with Business Times recently that it will submit bids for construction projects worth more than RM2 billion a year.
Bina Puri, involved in construction, property, highway concession, quarry and manufacturing, is targeting public and private sector projects.
Locally, it is looking to bid for jobs from the new permanent low-cost carrier terminal (LCCT) in Sepang, the light rail transit (LRT) extension works, road and highway projects, housing and building construction.
"There are a lot more projects to award under the Ninth Malaysia Plan. Many have not been executed as a lot of time is spent negotiating and finalising details of the contracts with the relevant ministries, before the letters of award are issued," Tee said.
Tee said as the company will be finishing some of its projects in Pakistan, Abu Dhabi and Thailand over the next three to eight months, it is working hard to replenish its order book.
Project in Abu DhabiTee added that Bina Puri should be able to secure more than 30 per cent of the bids as its proposals are usually more competitive and it has strong networking.
He said the group has letters of intent for four projects now, worth RM410 million, and it is working to convert them into letters of award soon.
This year alone it has won projects in Malaysia, Brunei and Pakistan to the tune of RM1.15 billion. Its biggest win was a RM693 million job to build 2,000 houses in Brunei.
In 2006 and 2007, Bina Puri secured projects worth RM1.6 billion and RM1.42 billion respectively.
Bina Puri wins RM185m job
By Sharen Kaur (Published in NSTon October 6 2009)
Bina Puri Holdings Bhd, one of the largest construction groups in the country, has won a RM185 million contract from Mayland View Sdn Bhd to build a 38-storey serviced apartment building in Jalan Kuching, Kuala Lumpur.
It beat companies like the China-listed Beijing Urban Constructive Group Ltd and local construction and engineering firm Setiakon.
The contract is the second biggest win for Bina Puri this year.
In March, the group won a RM693 million job to build 2,000 houses in Brunei.
The Mayland contract brings the value of new jobs in hand this year to RM1.4 billion, fattening its order book to nearly RM4.4 billion, with almost 60 per cent comprising unbilled sales.
In a filing to Bursa Malaysia yesterday, Bina Puri said it accepted the contract from Mayland, a unit of Mayland Group controlled by Tan Sri David Chu, on September 25.
The building, dubbed Regalia @ Jalan Sultan Ismail, has potential to generate gross development value of around RM600 million. It is scheduled for completion by early 2011.
The group will be paid progressively and the contract will start to contribute immediately to its bottom line, Bina Puri group managing director Tan Sri Tee Hock Seng said.
"This is our first win with Mayland. It was a tough bet and we went in very competitively with the intention to secure more work from Chu," Tee said in a telephone interview with Business Times.
"Apart from Mayland group, Chu is the major shareholder in Hong Kong's Far East Consortium and Land & General Bhd.
"We believe, in the longer term, we can get more contracts for new projects under the respective groups from Chu," Tee said, adding that Bina Puri wants to be less dependent on government projects, which take a longer time to be implemented.
Bina Puri Holdings Bhd, one of the largest construction groups in the country, has won a RM185 million contract from Mayland View Sdn Bhd to build a 38-storey serviced apartment building in Jalan Kuching, Kuala Lumpur.
It beat companies like the China-listed Beijing Urban Constructive Group Ltd and local construction and engineering firm Setiakon.
The contract is the second biggest win for Bina Puri this year.
In March, the group won a RM693 million job to build 2,000 houses in Brunei.
The Mayland contract brings the value of new jobs in hand this year to RM1.4 billion, fattening its order book to nearly RM4.4 billion, with almost 60 per cent comprising unbilled sales.
In a filing to Bursa Malaysia yesterday, Bina Puri said it accepted the contract from Mayland, a unit of Mayland Group controlled by Tan Sri David Chu, on September 25.
The building, dubbed Regalia @ Jalan Sultan Ismail, has potential to generate gross development value of around RM600 million. It is scheduled for completion by early 2011.
The group will be paid progressively and the contract will start to contribute immediately to its bottom line, Bina Puri group managing director Tan Sri Tee Hock Seng said.
"This is our first win with Mayland. It was a tough bet and we went in very competitively with the intention to secure more work from Chu," Tee said in a telephone interview with Business Times.
"Apart from Mayland group, Chu is the major shareholder in Hong Kong's Far East Consortium and Land & General Bhd.
"We believe, in the longer term, we can get more contracts for new projects under the respective groups from Chu," Tee said, adding that Bina Puri wants to be less dependent on government projects, which take a longer time to be implemented.
Thursday, September 24, 2009
Langkawi, the great Island of Malaysia
The name "Langkawi" is believed to be related to the kingdom of Langkasuka, centred in modern-day Kedah. The historical record is sparse, but a Chinese Liang Dynasty record (c. 500 AD) refers to the kingdom of "Langgasu" as being founded in the 1st century AD. 'Langkawi' mean's Eagle Island, it may be noted, and indeed there is a great abundance of eagles in the area. In Kuah, there is an eagle monument in Eagle Square which commemorates the origin of Langkawi's name.
Langkawi is also the site of the Mahsuri legend. The legend speaks of a young woman who was accused of adultery and was executed by the public despite her pleading innocence. Mahsuri, before her death, made a curse on the island for seven generations of bad luck. Langkawi eventually came under the influence of the Sultanate of Kedah, but Kedah was conquered in 1821 by Siam and Langkawi along with it. The Anglo-Siamese Treaty of 1909 transferred power to the British, who held the state until independence, except for a brief period of Thai rule under the Japanese occupation of Malaya during World War II. Thai influences remain visible in the culture and food of Langkawi, while Thai language is still understood by many on the island.
Langkawi was the site of the Langkawi Declaration, issued by the Heads of Government of the Commonwealth of Nations and making environmental sustainability one of the priorities of the Commonwealth.
On June 1, 2007, Langkawi Island has been given a World Geopark status by UNESCO.[1] Three of its main Geopark components are Mount Machincang Cambrian Geoforest Park, Kilim Geoforest Park and Pulau Tasik Dayang Bunting (Island of the Pregnant Maiden Lake).
Sheltered by the mountainous backbone of Peninsular Malaysia, Langkawi escapes the northeastern winter monsoon entirely and enjoys sunny skies when the eastern provinces are flooded. Coupled with natural white sand beaches, lush jungle foliage and craggy mountain peaks—but hampered by inaccessibility—the island was at one time touted as "Malaysia's best-kept secret".
Langkawi remained a sleepy backwater until 1987, when the island was granted tax-free status with the intention of promoting tourism. Subsequently the island's airport was upgraded and ferry links were increased.
Beginning 1990s, Langkawi competes with nearby Penang for the title of Malaysia's largest tourist draw. Resorts and 5-star hotels line the beaches and in the winter high season, direct flights land from as far as Europe and Japan.
Besides being tax-free, the beach and eagle, another attraction in Langkawi is the Cable Car to the tops of Gunung Mat Cincang at 705 m above sea level. Galeria Perdana a collection of over 2500 gift to the fourth Prime Minister of Malaysia, Tun Mahathir Mohamad.
Langkawi is affected by the milder western monsoon (May-September), and while diving is possible at Pulau Payar, water clarity tends to be poor.
Langkawi used to be the starting point of the annual international cycling race Tour de Langkawi cycling event, however after 2000, Langkawi was omitted from the race itinerary. Langkawi also hosts the biennial Langkawi International Maritime and Air Show (LIMA).
Transportation:
From the Kuah jetty, there are high-speed ferry connections to Satun in southern Thailand, Pulau Payar, Penang, Kuala Kedah and Kuala Perlis in the mainland of Peninsular Malaysia. Star Cruises ships dock at the Awana Porto Malai harbour on the west coast of the island. Malaysia Airlines has daily flights to Langkawi whilst AirAsia flies from Bangkok, Kuala Lumpur and Kota Kinabalu. SilkAir flies to Langkawi from Singapore and there is a Penang-Langkawi flight route operated by Firefly airline. The Langkawi island has a well developed road network. Taxis and car rentals are available at the Langkawi International Airport.
Club Mediterranee sees Asia-Pacific as growth region
By Sharen Kaur (Published in NST on September 22 2009)
PARIS-LISTED Club Mediterranee plans to set up more ski and beach resorts and is targeting Asia-Pacific as a growth region.
Club Med vice-president of marketing and general manager of commercial for Asia-Pacific, Olivier Horps, said it is looking to open three resorts in China and one in Japan within the next three years for more than RM150 million.
"We are looking at management contracts and setting some up on our own with developers. Our aim is to be one of the biggest ski and beach resort operators in China and Japan," he said in an interview.
Club Mediterranee is the world leader for ski resorts with 23 properties, the bulk of which are in Europe.
"We find that Asia-Pacific is less affected by the current economic crisis and people from worldwide have continued their vacations in this region. So we believe there is potential for us to grow," Horps said.
Club Mediterranee has 10 resorts in Asia-Pacific, of which two are in Hokaido and Kabira, Japan, two in Mauritius, and one each in Malaysia, Bali, Maldives, Phuket, Bintan and Australia.
Worldwide, it has a total of 80 resorts, which hosted a combine 1.36 million customers in 2008, representing a growth of 2.8 per cent.
Horps said its resorts in Asia-Pacific are expected to close the year with 60 per cent occupancy.
Last year, its Asia-Pacific operations earned Euro200 million (RM1.02 billion) contributing 12 per cent to Club Mediterranee's global revenue of Euro1.5 billion (RM7.68 billion).
"This year, we hope to maintain the revenue for our business in Asia-Pacific. In the current context, maintaining is already good. It has been a rough year with the economic crisis first, and then influenza A(H1N1).
"What we see is more late bookings. People are planning their holiday on shorter notice," he said.
At group level, revenue will decrease slightly but Club Mediterranee is expecting to do better than its competitors, Horps said.
Its net profit for fiscal 2008 was Euro2 million (RM10.24 million), as compared with a loss of Euro8 million (RM40.96 million) in 2007.
(END)
PARIS-LISTED Club Mediterranee plans to set up more ski and beach resorts and is targeting Asia-Pacific as a growth region.
Club Med vice-president of marketing and general manager of commercial for Asia-Pacific, Olivier Horps, said it is looking to open three resorts in China and one in Japan within the next three years for more than RM150 million.
"We are looking at management contracts and setting some up on our own with developers. Our aim is to be one of the biggest ski and beach resort operators in China and Japan," he said in an interview.
Club Mediterranee is the world leader for ski resorts with 23 properties, the bulk of which are in Europe.
"We find that Asia-Pacific is less affected by the current economic crisis and people from worldwide have continued their vacations in this region. So we believe there is potential for us to grow," Horps said.
Club Mediterranee has 10 resorts in Asia-Pacific, of which two are in Hokaido and Kabira, Japan, two in Mauritius, and one each in Malaysia, Bali, Maldives, Phuket, Bintan and Australia.
Worldwide, it has a total of 80 resorts, which hosted a combine 1.36 million customers in 2008, representing a growth of 2.8 per cent.
Horps said its resorts in Asia-Pacific are expected to close the year with 60 per cent occupancy.
Last year, its Asia-Pacific operations earned Euro200 million (RM1.02 billion) contributing 12 per cent to Club Mediterranee's global revenue of Euro1.5 billion (RM7.68 billion).
"This year, we hope to maintain the revenue for our business in Asia-Pacific. In the current context, maintaining is already good. It has been a rough year with the economic crisis first, and then influenza A(H1N1).
"What we see is more late bookings. People are planning their holiday on shorter notice," he said.
At group level, revenue will decrease slightly but Club Mediterranee is expecting to do better than its competitors, Horps said.
Its net profit for fiscal 2008 was Euro2 million (RM10.24 million), as compared with a loss of Euro8 million (RM40.96 million) in 2007.
(END)
Club Med may set up another village here
By Sharen Kaur (Published in NST on September 22 2009)
FRENCH-BASED Club Mediterranee, which operates the Club Med resort chain, may set up another village in Malaysia if it gets the chance to take over an existing property with a management contract.
Club Med vice-president of marketing and general manager of commercial for Asia-Pacific, Olivier Horps, said having a second resort in Malaysia would help to boost its revenue for Asia-Pacific.
"We may look at Kota Kinabalu, Sabah as a second destination. It could happen soon if there is a proposal from somebody," Horps told Business Times in an interview.
He said currently, a lot of foreigners are travelling to Malaysia and staying at its sole resort here, the Club Med Cherating in Pahang.
Club Med Cherating, which was set up in 1979, is poised for further development, having last been refurbished at a cost of RM30 million in 2004/2005.
The refurbishment had helped increased its occupancy rates from 50 per cent in 2004 to between 60 per cent and 65 per cent.
The resort, which has about 700 beds, looks at the number of beds instead of rooms to gauge its occupancy.
It now sells each room from RM550 per person per night, inclusive of accommodation, three meals, snacking and free flow of alcohol and non-alcohol beverages and entertainment.
"We review our (room) prices each year. The only time we raised room rates by a higher percentage was recently, when we included the two-day/one-night stay package with free-flow of beverages and dining.
But it has improved our sales volume," Horps said.
"We will make investments this year to add environment-friendly activities, instead of increasing rooms. We plan to create a new path in the jungle. We have cliffs looking into the sea and may create new activities there," Horps said.
Club Mediterranee, set up in 1950 by Gerard Blitz, has 80 resorts in its global portfolio with Malaysia being the first country in Asia-Pacific to have a Club Med resort.
(END)
FRENCH-BASED Club Mediterranee, which operates the Club Med resort chain, may set up another village in Malaysia if it gets the chance to take over an existing property with a management contract.
Club Med vice-president of marketing and general manager of commercial for Asia-Pacific, Olivier Horps, said having a second resort in Malaysia would help to boost its revenue for Asia-Pacific.
"We may look at Kota Kinabalu, Sabah as a second destination. It could happen soon if there is a proposal from somebody," Horps told Business Times in an interview.
He said currently, a lot of foreigners are travelling to Malaysia and staying at its sole resort here, the Club Med Cherating in Pahang.
Club Med Cherating, which was set up in 1979, is poised for further development, having last been refurbished at a cost of RM30 million in 2004/2005.
The refurbishment had helped increased its occupancy rates from 50 per cent in 2004 to between 60 per cent and 65 per cent.
The resort, which has about 700 beds, looks at the number of beds instead of rooms to gauge its occupancy.
It now sells each room from RM550 per person per night, inclusive of accommodation, three meals, snacking and free flow of alcohol and non-alcohol beverages and entertainment.
"We review our (room) prices each year. The only time we raised room rates by a higher percentage was recently, when we included the two-day/one-night stay package with free-flow of beverages and dining.
But it has improved our sales volume," Horps said.
"We will make investments this year to add environment-friendly activities, instead of increasing rooms. We plan to create a new path in the jungle. We have cliffs looking into the sea and may create new activities there," Horps said.
Club Mediterranee, set up in 1950 by Gerard Blitz, has 80 resorts in its global portfolio with Malaysia being the first country in Asia-Pacific to have a Club Med resort.
(END)
Friday, September 18, 2009
What are developers thinking?
By Sharen Kaur
Property developers are adjusting their business plan for next year as the economy improves. The first 7 months of the current year saw developers launching incentives such as the 5/95 package, free S&P and legal fees, and zero interest during construction. Transactions were quick for properties in up-market areas thanks to the discounts and goodies offered. And those who were holding on to their property purchase plans may regret now as they will be paying more than they should have if they had bought the properties earlier. This is because, developers are thinking of scrapping the discounts, and raising their prices.
For example, a property which costs RM400,000 in July, may now sell for RM430,000 and buyers would have to pay for legal fees and S&P. It is heard also that banks are cautious on their lending and loans may be hard to come by.
During bad times, every business owner would try to offer the best to win customers. Now, customers would have to go looking for the best,which is going to be time consuming.
Hot areas for properties currently - Bangsar, Damansara, PJ, Taman Seputeh, Sentul
Property developers are adjusting their business plan for next year as the economy improves. The first 7 months of the current year saw developers launching incentives such as the 5/95 package, free S&P and legal fees, and zero interest during construction. Transactions were quick for properties in up-market areas thanks to the discounts and goodies offered. And those who were holding on to their property purchase plans may regret now as they will be paying more than they should have if they had bought the properties earlier. This is because, developers are thinking of scrapping the discounts, and raising their prices.
For example, a property which costs RM400,000 in July, may now sell for RM430,000 and buyers would have to pay for legal fees and S&P. It is heard also that banks are cautious on their lending and loans may be hard to come by.
During bad times, every business owner would try to offer the best to win customers. Now, customers would have to go looking for the best,which is going to be time consuming.
Hot areas for properties currently - Bangsar, Damansara, PJ, Taman Seputeh, Sentul
Tuesday, September 15, 2009
National Day of Mexico
By Sharen Kaur
The Mexicans just know how to celebrate their national day. Wine, Champagne, Food...its all things common and the best on the list.
I was invited to celebrate the National Day of Mexico at the 5-star Renaissance Hotel in Kuala Lumpur today. It was amazing because I met many wonderful people...that's what i call good networking
The Mexicans just know how to celebrate their national day. Wine, Champagne, Food...its all things common and the best on the list.
I was invited to celebrate the National Day of Mexico at the 5-star Renaissance Hotel in Kuala Lumpur today. It was amazing because I met many wonderful people...that's what i call good networking
Abu Dhabi,Qatar bright spots in Mideast market
By Sharen Kaur (Published in NST on September 14 2009)
EVERSENDAI Group said the outlook for the Middle East construction market remains bleak, though there are some market opportunities for infrastructure projects.
Founder and managing director Datuk A.K. Nathan said while there are fewer jobs in the Gulf region, and competition is stiffer than before.
"While the market in Dubai has slowed due to effects from the economic crises, activities are still vibrant in Abu Dhabi and Qatar. In the first seven months of the current year, we have won contracts worth RM500 million in Abu Dhabi and Qatar," Nathan told Business Times.
The contracts are to build a convention centre and the Nakilat Shipyard in Qatar for Qatar Petroleum, a high-rise corporate tower in Abu Dhabi, dubbed Capital Gate, and Dubai Pearl, a luxury condominium development.
Nathan added more projects are coming on stream in the Middle East worth a few billion ringgit and as such Eversendai is geared on getting more jobs.
Eversendai's on-going projects include building the New Doha International Airport, a contract worth RM420 million awarded by SO JV, and the 84-storey Dubai Tower project worth RM125 million awarded by the Al Habtoor/Al Jaber joint venture.
Eversendai, set up in 1984 builds steel structures that are transformed into dazzling buildings that famous architects design.
The group gained recognition when it completed Tower 2 of the Petronas Twin Towers in Kuala Lumpur in 1988.
Its entry into the Middle East was through the Burj Al Arab hotel project in Dubai, which it was awarded in 1995.
Burj Al Arab became the company's signature project and helped promote Eversendai. Since then, Eversendai has completed 50 projects in Dubai, Abu Dhabi, Bahrain, Saudi Arabia, Oman and Qatar.
They include buildings such as the Dubai Mall, Rose Tower, Emirates Towers, Ski Dome, Burj Dubai, Dubai Festival City and the Qatar Science and Technology Park.
(ENDS)
EVERSENDAI Group said the outlook for the Middle East construction market remains bleak, though there are some market opportunities for infrastructure projects.
Founder and managing director Datuk A.K. Nathan said while there are fewer jobs in the Gulf region, and competition is stiffer than before.
"While the market in Dubai has slowed due to effects from the economic crises, activities are still vibrant in Abu Dhabi and Qatar. In the first seven months of the current year, we have won contracts worth RM500 million in Abu Dhabi and Qatar," Nathan told Business Times.
The contracts are to build a convention centre and the Nakilat Shipyard in Qatar for Qatar Petroleum, a high-rise corporate tower in Abu Dhabi, dubbed Capital Gate, and Dubai Pearl, a luxury condominium development.
Nathan added more projects are coming on stream in the Middle East worth a few billion ringgit and as such Eversendai is geared on getting more jobs.
Eversendai's on-going projects include building the New Doha International Airport, a contract worth RM420 million awarded by SO JV, and the 84-storey Dubai Tower project worth RM125 million awarded by the Al Habtoor/Al Jaber joint venture.
Eversendai, set up in 1984 builds steel structures that are transformed into dazzling buildings that famous architects design.
The group gained recognition when it completed Tower 2 of the Petronas Twin Towers in Kuala Lumpur in 1988.
Its entry into the Middle East was through the Burj Al Arab hotel project in Dubai, which it was awarded in 1995.
Burj Al Arab became the company's signature project and helped promote Eversendai. Since then, Eversendai has completed 50 projects in Dubai, Abu Dhabi, Bahrain, Saudi Arabia, Oman and Qatar.
They include buildings such as the Dubai Mall, Rose Tower, Emirates Towers, Ski Dome, Burj Dubai, Dubai Festival City and the Qatar Science and Technology Park.
(ENDS)
Eversendai expects net profit to hit RM90m mark
By Sharen Kaur (Published in NST on September 14 2009
EVERSENDAI Group expects net profit in its current financial year to reach the RM90 million mark, helped by cost- cutting measures and consolidation of its business.
For the year ended December 31 2008, Eversendai posted a net profit of RM71 million on RM797 million in turnover.
This year, Eversendai is expecting record profits, on the back of RM900 million in revenue, largely backed by recently secured contracts worth RM500 million in the Middle East.
The company is also bidding for new jobs in the Middle East to replenish its RM1.5 billion order book.
"Even though the market is bleak, Eversendai is able to withstand the crises and do better than in previous years," its founder and managing director Datuk A.K. Nathan said.
Thus far, Eversendai has won contracts to build a convention centre and the Nakilat Shipyard in Qatar for Qatar Petroleum, a high-rise corporate tower in Abu Dhabi, dubbed Capital Gate, and Dubai Pearl, a luxury condominium development in Dubai.
Nathan said Eversendai had consolidated its business and restructured the group's operation six months before the crises hit world markets last year.
"We were fortunate to do that before the turmoil. That has helped us to ride out the storm," he told Business Times in an interview in Kuala Lumpur.
For example, Eversendai has been buying steel materials for its projects in advance, which are kept at its 100,000 sq m storage yard in Sharjah, the United Arab Emirates.
"There is less concern on price fluctuation when we stock up steel a year in advance for the fabrication of structures for buildings," Nathan said.
Eversendai, set up in 1984, employs 6,000 people in Malaysia, India and the Middle East and is looking to hire more professionals as it seeks to expand its business.
"While there is stiffer competition in the Middle East, we are leveraging on our reputation to complete projects within schedule, without comprising on quality and safety. We expect more work later this year," he said.
Eversendai has fabrication factories in Dubai, Sharjah, Qatar and Malaysia with a combine capacity of 120,000 tonnes of fabricated steel per year.
Nathan said presently, the factories are running 24/7 to keep up with the group's workload.
(ENDS)
EVERSENDAI Group expects net profit in its current financial year to reach the RM90 million mark, helped by cost- cutting measures and consolidation of its business.
For the year ended December 31 2008, Eversendai posted a net profit of RM71 million on RM797 million in turnover.
This year, Eversendai is expecting record profits, on the back of RM900 million in revenue, largely backed by recently secured contracts worth RM500 million in the Middle East.
The company is also bidding for new jobs in the Middle East to replenish its RM1.5 billion order book.
"Even though the market is bleak, Eversendai is able to withstand the crises and do better than in previous years," its founder and managing director Datuk A.K. Nathan said.
Thus far, Eversendai has won contracts to build a convention centre and the Nakilat Shipyard in Qatar for Qatar Petroleum, a high-rise corporate tower in Abu Dhabi, dubbed Capital Gate, and Dubai Pearl, a luxury condominium development in Dubai.
Nathan said Eversendai had consolidated its business and restructured the group's operation six months before the crises hit world markets last year.
"We were fortunate to do that before the turmoil. That has helped us to ride out the storm," he told Business Times in an interview in Kuala Lumpur.
For example, Eversendai has been buying steel materials for its projects in advance, which are kept at its 100,000 sq m storage yard in Sharjah, the United Arab Emirates.
"There is less concern on price fluctuation when we stock up steel a year in advance for the fabrication of structures for buildings," Nathan said.
Eversendai, set up in 1984, employs 6,000 people in Malaysia, India and the Middle East and is looking to hire more professionals as it seeks to expand its business.
"While there is stiffer competition in the Middle East, we are leveraging on our reputation to complete projects within schedule, without comprising on quality and safety. We expect more work later this year," he said.
Eversendai has fabrication factories in Dubai, Sharjah, Qatar and Malaysia with a combine capacity of 120,000 tonnes of fabricated steel per year.
Nathan said presently, the factories are running 24/7 to keep up with the group's workload.
(ENDS)
Saturday, September 12, 2009
A classic collection
By Sharen Kaur (Published in NST on July2 2008)
IT was great having dinner at the Selangor Sikh Union's Kelab Aman, the country's oldest Sikh sports club with a clubhouse serving typical and tasty Punjabi food. SHAREN KAUR has the story.
Kelab Aman, which literally means `Peace Club', is the home of the SSU, the first Malaysian Sikh non-religious organisation founded circa 1920.
The two-storey club with a football field is located behind Empire Tower at Jalan Tun Razak, near the Bangladesh Embassy, off Jalan Damai, Kuala Lumpur.
It was once the site of a tin mine and in 1968 more than 4,000 lorry loads of earth were used to fill the pit before groundwork could start.
The club was officially completed in 1974 and remains the site for the Sikh community's cultural functions, carnivals, hockey, cricket and other sports.
It is also popular among the Sikhs and other communities who gather to celebrate weddings, engagements, birthdays, and corporate dinners at its 500-pax hall on the first floor.
While you're there, you'll find it a friendly, family-oriented place, offering ample parking FOC.
There's a full-bar and dance floor downstairs, but the crown in this jewel for me really is D'Aman Northern Indian Restaurant which serves authentic North Indian cuisine, a complete menu offering the community's
famous chappati (leavened bread), saag (spinach), aloo gobi (cauliflower and potato) and good, old susu lembu (cow's milk).
If you dine at night, you might get to see the brightly lighted field when games go on.
D'Aman, owned by husband and wife team Gurdev Singh, 32, and Jaspreet Kaur, 28, does not offer just an extensive menu for daily diners but acts as a one stop centre in event management.
Jaspreet tells me that D'Aman caters food for events at the club and works closely with Classic Floral Services for the decorations, while Gurdev runs a company known as MDJ Sound and Light, providing lights, a comprehensive sound system and live entertainment.
"The fun about establishing our base at Kelab Aman is its popularity among those who are always looking for something new to add to their celebration in terms of exotic food and stylish decoration.
"The non-Sikhs who come here love Punjabi food, hence their decision to host events here," added Jaspreet.
Gurdev said that the club is also strategically located making its appeal more unique.
While competition is no threat to them, Gurdev is a firm believer in offering value-for-money.
The food is reasonably priced. A nice bowl of saag and chappati for two people would cost RM7.40. Adding a piping hot masala tea and cold mango lassi to that would bring the bill to RM12.20 and you know why the place is often patronised.
Jaspreet suggested we taste the house specialties - butter chicken, dhall tarka (lentil gravy), saag (with cottage cheese), tandoori chicken, garlic and Kashmiri naan and mix vegetables Punjabi-style.
The saag which I had first was creamy and simply melted in my mouth, and when I ate it with the naan, it was heaven on earth.
The naan was warm and soft. But if you take just the Kashmiri naan, you may end up eating it on its own as it's superbly made with kismis (raisins), and dusted with lots of almond and cashew nut powder.
Next, I had butter chicken with naan, which you could also eat with jeera rice or chappati but naan for me was the better choice.
The butter chicken, which according to Jaspreet is one of the best sellers at D'Aman, was creamy with perfect texture and flavour.
Jaspreet was reluctant to disclose the ingredients adding that it was traditionally a family recipe but after trying a few spoons myself, I could say there was pure butter and a few different masala mixtures in it.
I had tandoori chicken next. As you take each bite, you just want more as its perfectly done and not too spicy, either.
The Punjabi-style mixed vegetable was a sure thing, which passed my test in terms of freshness, colour, aroma and presentation.
The vegetables - cauliflower, long beans, capsicum, carrot and potato - was not overly cooked giving you that added crunch as you savour it.
Finally, I enjoyed the mango lassi with mango pulp from India and yoghurt. Sugar-free, it was not too heavy and quite thirst quenching after a long day.
Call 012-601-1385 012-601-1385 or email dpspices@gmail.com for reservations.
(END
IT was great having dinner at the Selangor Sikh Union's Kelab Aman, the country's oldest Sikh sports club with a clubhouse serving typical and tasty Punjabi food. SHAREN KAUR has the story.
Kelab Aman, which literally means `Peace Club', is the home of the SSU, the first Malaysian Sikh non-religious organisation founded circa 1920.
The two-storey club with a football field is located behind Empire Tower at Jalan Tun Razak, near the Bangladesh Embassy, off Jalan Damai, Kuala Lumpur.
It was once the site of a tin mine and in 1968 more than 4,000 lorry loads of earth were used to fill the pit before groundwork could start.
The club was officially completed in 1974 and remains the site for the Sikh community's cultural functions, carnivals, hockey, cricket and other sports.
It is also popular among the Sikhs and other communities who gather to celebrate weddings, engagements, birthdays, and corporate dinners at its 500-pax hall on the first floor.
While you're there, you'll find it a friendly, family-oriented place, offering ample parking FOC.
There's a full-bar and dance floor downstairs, but the crown in this jewel for me really is D'Aman Northern Indian Restaurant which serves authentic North Indian cuisine, a complete menu offering the community's
famous chappati (leavened bread), saag (spinach), aloo gobi (cauliflower and potato) and good, old susu lembu (cow's milk).
If you dine at night, you might get to see the brightly lighted field when games go on.
D'Aman, owned by husband and wife team Gurdev Singh, 32, and Jaspreet Kaur, 28, does not offer just an extensive menu for daily diners but acts as a one stop centre in event management.
Jaspreet tells me that D'Aman caters food for events at the club and works closely with Classic Floral Services for the decorations, while Gurdev runs a company known as MDJ Sound and Light, providing lights, a comprehensive sound system and live entertainment.
"The fun about establishing our base at Kelab Aman is its popularity among those who are always looking for something new to add to their celebration in terms of exotic food and stylish decoration.
"The non-Sikhs who come here love Punjabi food, hence their decision to host events here," added Jaspreet.
Gurdev said that the club is also strategically located making its appeal more unique.
While competition is no threat to them, Gurdev is a firm believer in offering value-for-money.
The food is reasonably priced. A nice bowl of saag and chappati for two people would cost RM7.40. Adding a piping hot masala tea and cold mango lassi to that would bring the bill to RM12.20 and you know why the place is often patronised.
Jaspreet suggested we taste the house specialties - butter chicken, dhall tarka (lentil gravy), saag (with cottage cheese), tandoori chicken, garlic and Kashmiri naan and mix vegetables Punjabi-style.
The saag which I had first was creamy and simply melted in my mouth, and when I ate it with the naan, it was heaven on earth.
The naan was warm and soft. But if you take just the Kashmiri naan, you may end up eating it on its own as it's superbly made with kismis (raisins), and dusted with lots of almond and cashew nut powder.
Next, I had butter chicken with naan, which you could also eat with jeera rice or chappati but naan for me was the better choice.
The butter chicken, which according to Jaspreet is one of the best sellers at D'Aman, was creamy with perfect texture and flavour.
Jaspreet was reluctant to disclose the ingredients adding that it was traditionally a family recipe but after trying a few spoons myself, I could say there was pure butter and a few different masala mixtures in it.
I had tandoori chicken next. As you take each bite, you just want more as its perfectly done and not too spicy, either.
The Punjabi-style mixed vegetable was a sure thing, which passed my test in terms of freshness, colour, aroma and presentation.
The vegetables - cauliflower, long beans, capsicum, carrot and potato - was not overly cooked giving you that added crunch as you savour it.
Finally, I enjoyed the mango lassi with mango pulp from India and yoghurt. Sugar-free, it was not too heavy and quite thirst quenching after a long day.
Call 012-601-1385 012-601-1385 or email dpspices@gmail.com for reservations.
(END
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