A case of once bitten, twice shy for Selangor Prop

By Sharen Kaur
Published in NST on April 29 2010


SELANGOR Properties Bhd (SPB)  will stop investing in global property funds after losing money on previous bets.

SPB, one of the largest landowners in Damansara Heights, Kuala Lumpur, had invested some RM300 million in 2006 in several funds managed by foreign banks.

"We thought we could make more money but the value started to drop. We have RM88 million in the funds now and the valuation has improved. We will sell when we think it is right," SPB financial controller Lee Boon Kian said.

The group has sold some of its investments but it made provisions of RM77 million in 2009 to account for the lower value of its investments.

Speaking after the company's annual general meeting in Kuala Lumpur yesterday, Lee said SPB may set up a real estate investment trust. It is now building its property portfolio.

Its current portfolio includes Menara Milenium, Wisma Damansara, Kompleks Pejabat Damansara, Wisma HELP and SPB Towers. It also owns half of the Claremont Shopping Mall in Australia.

The book value of the assets, which yields 7 per cent to 8 per cent returns annually, and its 104ha vacant land in the Klang Valley is valued around RM1.3 billion.

SPB may redevelop and upgrade some properties like Wisma Damansara.

"We have RM600-odd million cash in hand and will use part of it for the plan and also to manage our new and existing property development projects in Kuala Lumpur and Australia," Lee said.

SPB holds 51 per cent of Help International Corp Bhd, a private university college. It is building a main campus for HELP University College in Subang 2.

It is also bullish on the property sector and hopes to do better in its next fiscal year ending October 31 2011 as it has several new launches coming up in the second half of this year.

SPB is launching Batai Condominium, a 20-storey tower with 107 units worth around RM350 million, at Jalan Batai, Damansara Heights.

It will also launch new houses at its Bukit Permata and Selayang Mulia projects in Gombak and Selayang.
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SunCity property investment unit to provide half of group's profit

By Sharen Kaur
Published in NST on April 29 2010

SUNWAY City Bhd's property investment division will continue to provide half of the group's net profit as new projects come on stream this year.

The developer is planning to launch the RM1.5 billion Sunway Velocity integrated commercial project in Cheras, which will have a 800,000 sq ft shopping mall, shop offices and serviced apartments.

It will also start building the Lost World Hotel in Ipoh, Perak, two office towers and an apartment for nurses of Sunway Medical in Bandar Sunway, Selangor.

In addition, it will start expanding its Sunway Pyramid mall.


These properties are worth more than RM600 million, managing director for property investment, Ngeow Voon Yean told Business Times.

"Market optimism is coming back and all indicators point to a recovery to a certain extent," Ngeow said.

The division now owns and manages RM4.7 billion worth of properties. They include Sunway Pyramid Mall, Sunway Carnival Mall, Sunway Giza, Menara Sunway, Sunway Tower, The Banjaran Hotsprings Retreat and two universities.

Ngeow said hotel revenue is set to rise as the economy improves and there are more meetings and exhibitions taking place.

"Our hotels are doing well with room bookings and functions giving us a good indication that business travellers are back. We hope to close the year at an average 78 per cent occupancy for all our operating hotels and resorts," Ngeow said.

SunCity owns Sunway Resort Hotel and Spa, Sunway Georgetown, Sunway Seberang Jaya, Sunway Hanoi, Sunway Pnomh Penh and the Banjaran, which collectively has 2,000 rooms.

It manages Allson Angkor Paradise, Allson Angkor Hotel, Golden Diamond hotel and Allson Medan Tuanku

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SunCity positive on sales of Australian project

By Sharen Kaur
Published in NST on April 29 2010

Sunway City Bhd (SunCity) is building logistics and distribution centres at its RM1.1 billion industrial park project in Australia and it is positive on sales.

"Looking at currency appreciation, the economy is doing well. Industrial land price dropped more than 30 per cent in 2009 to A$225 per sq metre (A$1 = RM2.95). It is improving," said SunCity international property development division managing director Ngian Siew Siong.

SunCity and Australand Property Group are developing the project known as Wonderland Business Park on 120ha.

Construction started this year and the project is due for completion by 2014.

Ngian told Business Times that the company has sold one distribution centre to Best & Less, a retailer for A$44 million.

"We are negotiating two more deals. One local Australian company plans to buy a logistic and distribution centre and the other company wants to lease a separate building," Ngian said.

SunCity ventured into Australia in 1997 when it bought 220ha of land, which partly housed the Wonderland Sydney Theme Park in 1997.

Around mid-2000, the company closed the park and sold 100ha to a local institution and to Australand, which is controlled by Singapore's CapitaLand.

In 2005, it signed a joint venture with Australand to develop the remaining 120ha.

"We are proud of this venture. We may consider more developments in Australia," Ngian said.

SunCity targets to have 30 per cent of its net profit from overseas projects by 2015, from some 5 per cent currently. Its focus is on India and China, Ngian said.

The company has two joint-venture projects each in India and China, worth almost RM8.3 billion collectively.

Its project in China is Sunway Guanghao in Jiangyin, which will be launched in May or June. It comprises medium-end condominiums and specialty shops.

SunCity also has 110 acres to develop at the Tianjin Eco-City eco-themed integrated project. It will launch the project early next year.

In India, it plans to build Sunway Opus Grand Residency in Hyderabad, comprising more than 3,000 condominium units.

It will also build 1,500 units of condominiums on a 14-acre site near Hyderabad starting next year.

"The combined population in India and China is 2.5 billion so it is a huge market as house ownership is still very low. There is strong emerging middle class," Ngian said.

Bidders for PAAB water project trimmed to 12

By Sharen Kaur
Published in NST on April 26 2010

PENGURUSAN Aset Air Bhd (PAAB) has narrowed down the list of companies that can bid to build a RM2 billion water treatment plant in Hulu Langat, Selangor, to 12 from more than 30 before.

  A source familiar with the plan said PAAB will call for a tender in May or June. The 12 groups are expected to submit a detailed proposal, outlining the framework, costing and design of the project.

"The 1,130 MLD (million litres a day) treatment plant, which will take two to three years to construct, will process the raw water transferred from Pahang to Selangor via a 44.6km tunnel," the source said.

The plant is part of the Pahang-Selangor Interstate Raw Water Transfer Project, which will ease the water shortage problem in Selangor and Kuala Lumpur.

It will be owned by PAAB, a wholly-owned company of Minister of Finance Inc.

The 12 groups are Gamuda and Biwater International, MMC and Salcon, Loh & Loh and UEM Builders, WCT and Sinohydro Corp, LGB Engineering, George Kent and Taliworks.

Others include LBH Group, Puncak Niaga (M) Sdn Bhd, IJM Construction Sdn Bhd, Kumpulan Perangsang Selangor Bhd, Hati Muda Sdn Bhd, Mewah Kota Sdn Bhd and Asia Baru Construction Sdn Bhd.

Business Times understands that the design-and-build project had attracted more than 30 companies, including Japanese and South Korean firms.

The only major contract awarded under the Pahang-Selangor water transfer project is the tunnelling work from Karak in Pahang to Hulu Langat.

A tie-up between IJM Corp, UEM Builders Bhd, Shimizu Corp and Nishimatsu won the RM1.3 billion job.

Once completed, 1,890 million litres of raw water from Sungai Semantan in Pahang will be channelled daily via the tunnel through the Main Range to Sungai Hulu Langat.

Three more contracts are pending, each worth around RM200 million and RM300 million, to construct intake and pumping stations, pipe-laying and to build the Kelau Dam.

The source said the contracts are under technical evaluation and will be awarded by August.

A consortium comprising Loh & Loh Corp Bhd, George Kent (Malaysia) Bhd and Japan's Hazama are expected to win the contract to build the intake and pumping station.

"The pipe-laying contract had attracted 15 bidders but seven have been disqualified as they failed to meet the technical aspects of the project," the source said.

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On lookout for signs ofspeculation, overheating

By Sharen Kaur
Published in NST on Apri 24 2010

AS THE property market makes its recovery, the government has one eye on potential speculative activities.

This is a risk because borrowing costs are still low while developers have their promotions to boost sales. This combination could induce people to bet on rising property prices, aided by an economic recovery.

Indeed, Valuation and Property Services Department director general Datuk Abdullah Thalith Md Thani said the government is concerned about the property market overheating.

However, he pointed out that the government has been taking preventive measures such as the Real Property Gains Tax (RPGT).

The 5 per cent RPGT is applicable to properties that are sold within five years of their purchase.

Still, the property market's recovery appears to be modest as the average price of a house based on The Malaysian All House Price Index, rose by 3.2 per cent to RM184,574 in the last quarter of 2009.

Houses in Kuala Lumpur are the most expensive at at average price of RM381,802, followed by Sabah at RM299,566 and Selangor at RM266,686 in the same quarter.

According to data from the National Property Information Centre, property transactions for the first three months of 2010 rose to 91,979 units, valued at RM25.3 billion, which is 52 per cent higher than in the first quarter of 2009.

Abdullah Thalith said the next three quarters will be better as people generally buy more properties in the second half of the year.

Demand for high-end units priced above RM500,000 will increase steadily. Last year, there were more sales for houses priced between RM100,000 and RM500,000.

By type, terraced houses will still be the most sought after as land prices are rising.

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One or two projects at a time to ensure quality

By Sharen Kaur
Published in NST on April 22 2010

SUPERBOOM Projects Sdn Bhd, a privately held property developer, plans to focus on one or two projects at a time to ensure the quality of its work.

"We have received offers to develop land. We are keeping our options open," said chief executive officer Peter Chan.

Superboom was set up by Chan and his partner, David Yam, in 2002.

Chan is the former chief executive officer of bereavement care provider NV Multi Group Bhd while Yam has over 20 years of experience in the construction and project management industry.

He started work with Sunrise Bhd and was involved in Mont Kiara Phase 1.

Superboom's previous projects are the 576-unit Permai Lake View Apartments in Ipoh, and

Subang Galaxy in Subang 2, Selangor, comprising 175 double storey terraced houses.

Chan said the two projects were completed ahead of schedule and prices have appreciated by more than 30 per cent since completion.

"Our focus for the next three years is on The Haven. We hope to sell all the units within the next two years," Chan said.

The Haven is a high-end lakeside gated residential development in Ipoh, Perak, with three 26-storey blocks of luxury condominiums. Each block has 165 units.

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Haven of holiday homes

By Sharen Kaur
Published in NST on April 22 2010

THE Haven, a high-end lakeside gated residential development in Ipoh, Perak, is attracting investors from Hong Kong, Vietnam and Singapore who are looking for holiday homes in Malaysia.

The RM250 million project is developed by Ipoh-based Superboom Projects Sdn Bhd, and features three 26-storey blocks of luxury condominiums.

Chief executive officer Peter Chan said The Haven is unique as it has natural settings with picturestique backdrop.

Each block has 165 units overlooking a 1.6ha private natural lake with running water, a 14-storey high monolithic limestone rock formation, and the existing 280 million-year-old limestone hills.

The units are available in 12 configurations - panoramic corner, lakeview, central lakeview, two- and three-bedroom bungalows in the sky, duplex and penthouses and garden units.

Chan said The Haven is aimed to be among the first developments to embark on all feasible avenues of harvesting nature's renewable, sustainable resources such as wind, water, bio-gas and pro-active mechanical resources to power and maintain common areas.

He said the condominiums will be the highest and the most expensive development in Perak, setting a benchmark of modern living.

Chan added that almost half of the first block has been sold since the unveiling of the project in Tambun, Ipoh, about one month ago.

"Majority of the buyers are up-graders from within Ipoh. The project has met our expectations in terms of sales. We believe the remaining units will be snapped within the next few months.

"We are now getting the attention from foreign property seekers and will open for sale the second block by the end of this year. We are bullish on the market," Chan told Business Times in an interview.

The regular units range from 958 sq ft to 2,840 sq ft, while the penthouses range between 3,743 sq ft and 4,345 sq ft. The units are priced from RM250,000 to RM1.4 million each.

"We spent three years designing this project. Our philosophy is to deliver attractively designed and finished homes to purchasers. Much attention is given to details so no renovation is necessary when the owners move in," said Superboom co-principle David Yam.

Yam said the five-level security from the entrance of the driveway leading up to the entrance of each floor, in addition to a fenced-up parameter and regular patrols was another selling point of the project.

Superboom will be introducing The Haven to home buyers in Kuala Lumpur tomorrow on a special invitation basis.

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Coastal ties to help Ramunia see profits again

By Sharen Kaur
Published in NST on April 20 2010

RAMUNIA Holdings Bhd (7206), which has just sold its main asset, expects to be back in the black and free from the PN17 label this year as it partners shipbuilder Coastal Contracts Bhd.

It plans to continue with the engineering business, servicing the oil and gas industry, despite selling its fabrication yard in Johor to Sime Darby Bhd for RM515 million.

Loss-making Ramunia was classified as a PN17 company on February 25 this year as its shareholders' fund fell below half of its paid-up capital. The label typically identifies financially troubled firms.

The company has until March 1 next year to come up with a revamp plan, director Too Kok Leng told reporters after a shareholders' meeting in Kuala Lumpur yesterday.

On February 28, Ramunia signed a memorandum of understanding with Coastal's wholly-owned unit, Pleasant Engineering Sdn Bhd, to undertake oil and gas projects.

Coastal offers a wide range of marine services and vessels to worldwide clients of different industries and has a fabrication yard in Sandakan, Sabah.

"It is a good marriage. We have the licence and expertise, and Coastal has a yard. So we are complete in that sense.

"We are looking at some fabrication work as well as onshore and offshore engineering projects by Petronas (Petroliam Nasional Bhd) and the private sector," Too said.

In the year ended October 31 2009, Ramunia posted a net loss of RM53 million.

"Our first quarter earnings were positive. We made a net profit of RM3.42 million, and we hope to keep that going," Too added.

Chairman Datuk Azizan Abd Rahman said the current management was looking at various opportunities.

Ramunia will also meet its creditors on May 7 to settle its borrowings.

The group has outstanding loans of RM347 million, money it borrowed to modernise the yard, and it is seeking a haircut from lenders.

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Perdana ParkCity sees record RM600m sales

By  Sharen Kaur
Published in NST on April  20 2010

PERDANA ParkCity Sdn Bhd expects to rake in sales of RM600 million for the year to December 31 2010, its highest since it was set up 10 years ago, group chief executive officer Lee Liam Chye said.

"For the first time we are going to launch more than RM500 million worth of products in Desa ParkCity. We are confident of sales as we have a lot of registrations from repeat buyers," Lee said.

The company is launching 338 units of condominiums for some RM260 million and 147 units of two- and three-storey terraced houses, worth around RM300 million in June and July, respectively.

Perdana ParkCity was set up in 1990 as a subsidiary of Samling Group to venture into property development. Its flagship project is Desa ParkCity in Bukit Menjalara.

Sarawak-based Samling Group is controlled by tycoon Datuk Yaw Teck Seng. It is one of the biggest logging companies in Malaysia with some 1.5 million ha of forests in Sarawak.

The development of Desa ParkCity on 190ha started in June 2002. The land, formerly a site for a quarry, was bought from SPK Group in 2000 for around RM200 million.

It took the company three-and-a-half-years to form the site by blasting granite rocks.

"It was a very hostile site for development. There were 12.5 million cu m of material, where 75 per cent were rocks.

"We had to spend RM100 million upfront to form the site. It would have cost us more than RM200 million but we had two crushing plants to process the rocks, which were of commercial value and sold that in the market to lower the cost," Lee said.

Land clearing was clearly a drag on the project, which was planned for completion in 2012.

"It slowed us down a lot. Once we passed through that phase, we were able to ramp up. We are now targeting to complete by 2015," Lee said.

Lee, who has more than 20 years of experience in property consulting and development has been involved in Desa ParkCity since 1999.

"Master planning the 190ha was not easy but I knew how to. We just had to do a lot of research and the fundamentals of what people wanted was quite clear," Lee said.

"It was tough as we had to plan 25 neighbourhoods and the concepts were different. But I think today, we made the right judgement call," he said.

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Desa ParkCity project to be completed by 2015

By Sharen Kaur
Published in NST on April 219 2010

PERDANA ParkCity Sdn Bhd will launch RM600 million worth of properties a year at its Desa ParkCity township in Bukit Menjalara, Kuala Lumpur, to complete the project by 2015.

Group chief executive officer Lee Liam Chye said it is planning the launch of 5,000 homes over the next six years, mostly condominiums in 12 neighbourhoods, worth more than RM3.5 billion.

The Samling Group's subsidiary is optimistic of the market.

"Since the launch of the first neighbourhood in 2005, the price of properties have more than doubled, surpassing the value of terraced houses in Bangsar, Bandar Utama and Taman Tun Dr Ismail," he told Business Times during a visit to the project.

"The terraced houses here are worth more than RM1 million each currently. Despite the depressed market last year people were making around 65 per cent profit selling their properties in the secondary market," Lee said.

Desa ParkCity aims to offer a lively, safe and vibrant community. Each neighbourhood has its own concept, is gated and fully landscaped.

Once completed, Desa ParkCity will have 7,278 residences in 25 neighbourhoods with a population of 35,000 people.

The completed township will include a 18ha mixed-use commercial belt, a 17ha central park, a RM60 million clubhouse, local and international schools, a neighbourhood mall and a private hospital operated by Sime Darby Bhd.

"Most of our buyers are repeat customers and they believe in our product value. I am very critical about bad designs and carelessness. We owe our customers a duty to make sure we give them the best so they speak good about us," Lee said.

On the new products this year, the company will launch 338 units of condominiums for some RM260 million or more than RM450,000 each in June.

It will launch "Casaman" in July. According to Lee, Casaman will be the last batch of terraced houses at Desa ParkCity, featuring 147 units of 2 and 3 storey terraced houses, worth RM300 million.

The intermediate 2 storey and 3 storey houses are each priced from RM1.5 million and RM2 million

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YTL wants to make it a dozen Spa Villages

By Sharen Kaur
Published in NST on April 19 2010

YTL Corp Bhd  plans to open six new spas under the “Spa Village” brandname over the next three years, building up its leisure and hospitality portfolio.

The Spa Village is the world’s only spa to base its therapies on the healing heritage of the Baba-Nyonya — a unique combination of Chinese and Malay influences.

YTL operates six Spa Villages currently — in Pangkor Laut, Kuala Lumpur, Cameron Highlands, Tanjong Jara, Malacca and Tembok, Bali. All the spas have their own signature treatments.

YTL vice-president of spa division Chik Lai Ping, said business has been sustaining well despite the global financial turmoil.

“The spa continues to act as an amenity to the guests in the resort. We have a lot of followers that travel to all our YTL hotels and resorts to explore the uniqueness we have created for each space. Some travellers stay in the resort because of its Spa Village,” Chik told Business Times via email.

Chik said time and research are invested far in advance before a spa is developed. She did not elaborate on the investment costs involved.

The first Spa Village was officially launched by the late Luciano Pavarotti in September 2002 at Pangkor Laut Resort in Perak.

“Ever since we opened it, we have won many awards and recognition including Pangkor Laut Resort being named ‘Number One in the World’ by Condé Nast Traveller in 2003,” Chik said.

British newspaper, The Sunday Telegraph placed the spa among the World’s Top 25 Spas.

In 2003, it also won first place in British Conde Nast Traveller’s Awards for Best Overseas Destination Spa, beating venerable places like Les Sources des Caudalie in Bordeaux, France and Clinique La Prairie in Switzerland.

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Blue Archipelago aims to be global player

By Sharen Kaur
Published in NST on April 14 2010

BLUE Archipelago Bhd, a shrimp producer owned by Khazanah Nasional Bhd, will make its maiden overseas shipment to the US, Europe and Japan in July.


It will start with 2,000 tonnes of shrimp worth around RM22 million, from its 420ha farm in Kerpan, Kedah, chief executive officer Shahridan Faiez said.

Exports will increase to 14,000 tonnes per annum, or RM150 million, by the first quarter of 2011 when the first phase of its RM250 million 1,000ha Integrated Shrimp Aquaculture Park (iSHARP) in Setiu, Terengganu, starts operations.

"We aim to be a global player in shrimp aquaculture. We are targeting 5 per cent of the global shrimp market for specific product category over the next five years," Shahridan said.

The current shrimp industry is worth around US$19 billion (RM61.37 billion) and growing annually by 11 per cent, he said at the signing ceremony between Blue Archipelago, SAP Malaysia, ObTech Asia Pacific and IBM Global Services in Petaling Jaya, Selangor, yesterday.

"I am bullish on growth in the industry. This is a sunrise industry as population and wealth is growing.

"At the same time, the supply of shrimps, which traditionally came from wild catch in the sea, is dropping now. We are in to fill the gap," Shahridan said.

Blue Archipelago plans to set up 5 iSHARPs under the 10th Malaysia Plan (2011-2015). Depending on the size, each will cost more than RM150 million.

Blue Archipelago is also investing RM4 million in information technology (IT) to operate more efficiently, and improve its inventory and resource management.

"In five years from now, we will have operations in other parts of Malaysia and overseas and we need to coordinate our operations from feed mills to processing plants to produce high-quality products," Shahridan said.

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Masterskill to list on Main Market

By Sharen Kaur
Published in NST on April 14 2010

Masterskill (M) Education Group Bhd, Southeast Asia's largest nursing and healthcare college operator, is finally listing on the Main Market of Bursa Malaysia next month, after putting on hold twice its plans to sell shares.


According to a company source, the initial public offering (IPO) is expected to raise some RM800 million.

In its draft prospectus on the Securities Commission website, it is stated that the IPO will involve an offer for sale of 164 million existing shares and a public issue of 41 million new shares.

This means that Masterskill will only raise about RM164 million from the IPO, while the rest will go to the shareholders involved in the offer for sale.

The draft prospectus did not provide the IPO price as the group will ask for bids from institutional investors first before fixing the final price.

However, sources indicate that it could be around RM4 a share and the listing is slated for sometime next month.

Masterskill will be the country's first health science college to be listed on the local bourse.

"In February, the group was ranked first in Malaysia among all providers of nursing education in terms of student enrolment, with an estimated market share of 16 per cent," Masterskill said in its draft prospectus.

Masterskill had twice postponed the IPO: in the first quarter of 2008 and then in November the same year as market conditions were not suitable for the exercise.

It has hired CIMB Investment Bank Bhd and Goldman Sachs to help arrange the IPO.

Masterskill plans to use proceeds from the IPO to set up a nursing and medical campus in Johor in addition to nursing universities in Sabah, Sarawak and overseas.

Masterskill was set up as a company in 1997. It operated as a college in 2004 and as a university college in 2008.

Its revenue and net profit have been growing steadily since 2007 as more students enrol for its nursing and health programmes.

Last year, it had 17,165 students, up 27 per cent from the number in 2008.

In the fiscal year ended December 31 2009, Masterskill achieved net profit of RM97 million on revenue of RM273 million.

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Ahmad Zaki to bid for RM700m contracts

By Sharen Kaur
Published in NST on April 13 2010

CONSTRUCTION group Ahmad Zaki Resources Bhd (AZRB)  said it will bid for contracts to build four office towers in Putrajaya worth some RM700 million to grow its income.


It will also bid for other building and infrastructure projects called by Putrajaya Holdings Sdn Bhd, AZRB executive director Datuk Wan Zulkifli Wan Muda said.

Wan Zulkifli told Business Times that AZRB is hopeful of getting more contracts by the end of this year. It is bidding for work in Malaysia, the Middle East and in India.

"The unbilled portion of our existing order book is RM1.4 billion and this is expected to grow. We are hopeful of doing better in the current financial year," he said.

For the year to December 31 2009, AZRB posted a net profit of RM20.7 million on revenue of RM458.1 million.

Putrajaya Holdings chief Datuk Azlan Abdul Karim said it will call for tenders for the 14- and 15-storey office towers in the next five months.

It will also call for tenders for other building projects in Putrajaya later this year due to demand for new office space.

Ahmad Zaki Sdn Bhd chairman Datuk Abdul Rahman Abdullah said each project the group bids for is worth several hundred million ringgit.

"These are mainly building and infrastructure projects. There are a lot of new projects coming up in Malaysia and in the Middle East. We will take on the projects provided the price is right," he said.

It plans to build its base and tap the potential in the Gulf region, covering Saudi Arabia, Qatar, Bahrain, Oman, Kuwait and the United Arab Emirates.

AZRB has four existing projects in Saudi Arabia worth almost RM900 million.

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Putrajaya to call for project tenders worth RM1b

By Sharen Kaur
Published in NST on April 13 2010

Putrajaya Holdings Sdn Bhd will call for tenders for projects worth over RM1 billion this year as it is bullish on the property market in Putrajaya.


Chief executive officer Datuk Azlan Abdul Karim said the tenders are to build four office towers worth a combined RM700 million, residential properties and office blocks.

Tenders for the 14- and 15-storey office towers with one million sq ft of built-up space will be called in the next five months.

Companies like Ahmad Zaki Resources Bhd (AZRB), IJM Corp Bhd, Sunway Holdings Bhd, UEM Group and Ireka Corp Bhd are set to bid.

"When you have the government as the anchor tenant here, there are always spin-offs. There is support from the private sector and government agencies," Azlan said.

"We will lease the four office towers first and sell later. We have prospective buyers," he told Business Times after the signing of an agreement between Putrajaya Holdings and AZRB's construction arm, Ahmad Zaki Sdn Bhd (AZSB), in Putrajaya yesterday.

As Putrajaya is due for a cybercity status, more multinational companies (MNC) are expected to step in.

"The government wants Putrajaya to be a green city. This will attract more MNCs and local private sector companies as well as foreign firms.

"But for Putrajaya to go green, we need a monorail. I hope the government will have a budget to build a monorail under the 10th Malaysia Plan. That will help boost activities in Putrajaya," Azlan said.

According to Azlan, Perbadanan Putrajaya, the city's local authority, has sent in a request to the government. The matter is still pending.

On the signing with AZSB, Azlan said it will build a waterfront commercial project fronting the Putrajaya lake for RM126 million over the next two years.

AZSB will construct three blocks of three- and five-storey buildings comprising 106 units of retail lots and shop offices.

Azlan said the average selling price per unit is around RM500 per sq ft and more than half have been booked.

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Sunway -- from mining land to integrated resort city

By Sharen Kaur
Published in NST on April 12 2010

THE multi-billion-ringgit Sunway Integrated Resort City (SIRC) in Bandar Sunway started when founder Tan Sri Jeffrey Cheah Fook Ling turned to property by chance in the 1970s.


Cheah was born in Pusing, a small town outside of Ipoh in Perak. He had his primary and secondary education in Batu Gajah before leaving to pursue his tertiary education at the Footscray Institute of Technology (now Victoria University) in Melbourne, Australia.

Cheah started his career as an accountant in a motor assembly plant in Malaysia but decided it was not his cup of tea and left to venture out on his own.

By luck he came across an opportunity to buy a tin mining company, owned by a British. The company was mining over 350ha of land in Bandar Sunway, Selangor.

When the British decided to exit the business, Cheah made a quick decision to buy the land at RM100,000.

In 1974, Cheah founded the Sunway Group of companies and later set up Sunway City (Suncity) Bhd to develop the 350ha land.

According to Suncity managing director, property investment, Ngeow Voon Yean, Cheah had envisaged more than 15 years ago that the SIRC would be a vibrant city attracting generations ahead and a major tourism destination.

Today, the SIRC is the only integrated resort city in Malaysia which fully encapsulates the "livability" concept with the presence of six key components - shopping mall, hotel, office, theme park, education institute and medical centre.

The amazing rehabilitation and transformation of the landscape has won the township many international awards, including being adjudged the world's best leisure project by FIABCI (International Real Estate Federation, Paris) in 2002.
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Sunway City to focus on commercial, retail properties

By Sharen Kaur
Published in NST on April 12 2010

SUNWAY City Bhd (6289) plans to focus on building retail and commercial properties and luxury homes at its multi-billion-ringgit Sunway Integrated Resort City (SIRC) in Bandar Sunway, Selangor.


Managing director, property investment, Ngeow Voon Yean said there is lack of retail and commercial products at SIRC to attract multinational companies (MNCs).

SIRC, which started some 15 years ago, has two operating hotels, shopping malls and universities, Sunway Medical Centre, condominiums and villas, convention centres, shopoffices and a theme park.

There is Menara Sunway, the only office tower in the township and occupied by Sunway Group.

"We have MNCs keen to set up shop here because of the infrastructure and location. We are planning two 30-storey green office towers and will start building in the second half of this year," Ngeow said.

Ngeow said the first tower, with 277,000 sq ft of net lettable area, will be built next to Sunway Resort Hotel & Spa and linked to Sunway Pyramid Mall. The second tower, with 550,000 of net lettable area, will be built next to Menara Sunway.

He said SunCity will spend RM400 million to build the towers, which may be leased, sold via en bloc or injected into a real estate investment trust (REIT).

"We are optimistic SunCity's property investment division will continue to do well this year. We are looking forward to more excitements as we are in the process of unlocking the value of selected real estate properties for the REIT," he said in an interview with Business Times in Bandar Sunway.

SunCity recently said it plans to sell its stakes in Sunway Pyramid Mall, Sunway Resort Hotel & Spa, Pyramid Tower hotel, Menara Sunway, Sunway Carnival mall, Sunway Hotel Seberang Jaya, SunCity Ipoh hypermarket and Sunway Tower to a REIT.

The REIT, which may be worth around RM3 billion, is schedule to be launched later this year.

Currently, SunCity's investment division owns and manages RM4.7 billion worth of assets, including Sunway Giza, Sunway University College and Monash University Sunway Campus.

Ongoing construction at SIRC is Sunway-Monash U Residence, which is being built for RM170 million, for students at the two universities.

According to Ngeow, SunCity's investment in SIRC will reach RM5 billion by the time it is fully developed within the next five years or so.

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8 shortlisted for RM150m Sibu Airport upgrade

By Sharen Kaur
Published in NST on April 12 2010

Eight companies have been shortlisted to bid for a contract worth some RM150 million to upgrade the main terminal building and parking apron at Sibu Airport in Sarawak.


The companies include Trans Resources Corp Group, IJM Corp Bhd, Gamuda Bhd, Muhibbah Engineering Bhd and diversified Musyati Sdn Bhd, which is based in Kuching.

Business Times understands the eight were shortlisted as they had met the technical requirements and have built or upgraded airports previously.

A source familiar with the plan said the deadline for the companies to put in their bid is May 20.

"The contract may be awarded latest by July. The government wants the airport to be upgraded fast as Sibu is experiencing growth in tourist arrivals," the source said.

Sibu receives a large number of tourists each year from local and foreign countries.

In 2008, the airport, which is located 24km from Sibu town, handled 831,772 passengers on 14,672 flights and 735 tonnes of cargo.

As the second biggest town in Sarawak, Sibu does not want to be left behind in the fast developing state.

According to Malaysian Airports Holdings Bhd in previous reports, the terminal building, when upgraded, would be bigger than the Bintulu and Miri airports.

The terminal will have, among others, three aerobridges so that the distance for passengers to walk to and from the aircraft can be shortened.

Sibu Airport started operations in June 1994. It was built by YTL Corp Bhd at a cost of RM112 million.

The airport can accommodate small and mid-range aircraft like the Boeing 737-500. The 2,000-metre runway is capable of allowing direct flights from Kuala Lumpur using Boeing 737s.

The runway was last upgraded in 1999 by IJM Corp.

-ENDS-