Naza to build up construction arm

By Sharen Kaur
Published in NST on June 15 2010

NAZA Group of Companies plans to grow its construction arm and take it overseas to bid for high margin building and infrastructure projects, said Naza TTDI Sdn Bhd group managing director S. M. Faliq S. M. Nasimuddin.

Faliq said while construction is more challenging as compared with automotive and property development, he is confident that the division will grow in time to come.

"We have key people in the company and that is important. You must have vision, mission and long term strategies. I have personally set my own key performance indicators to grow the construction business.

"I am targeting at least 10 per cent profit growth year on year. Currently, the division is involved in building construction. I am looking at venturing into road and highway building, among others, internationally.

"There is a lot that our construction arm can do," Faliq said in an interview with Business Times in Shah Alam, Selangor, recently.

The Naza Group, which began operations in 1974 is traditionally known for its automotive operations.

It ventured into properties a few years ago and targets to become among the top three developers within the next three to five years.

Construction is a new business for the group.

The group is involved in hotel operations and is moving aggressively to expand its portfolio to include four- and five-star as well as boutique hotels.

Under the food and beverage portfolio, it has food outlets such as Bubba Gump Shrimp restaurants and Tutti Fruitti.

"We want to build the construction business and go overseas aggressively. Malaysia is a small playground. There are a lot more opportunities overseas," Faliq said.

-ENDS-

RM3b boost for Naza TTDI's Platinum Park

By Sharen Kaur
Published in NST on June 14 2010

Naza TTDI Sdn Bhd's Platinum Park project in Kuala Lumpur will see a new wave of development as the property developer launches lifestyle properties worth about RM3 billion next year and in 2013.

The 3.68-hectare Platinum Park is a high-end integrated residential and commercial development in the Kuala Lumpur City Centre (KLCC) area, worth RM4 billion.

Group managing director SM Faliq SM Nasimuddin said Naza TTDI will introduce its first residential property - a luxury serviced apartment, by early next year.




It will next launch a high-end condominium towards the end of 2011 or by early 2012.

Faliq said the towers may be named Platinum Park Suites and Platinum Park Residences, respectively.

He said there will be more than 200 units of serviced apartments, with sizes ranging from 500 sq ft to 1,100 sq ft offered to retail investors.

The condominium tower will have more than 100 units, ranging from 2,000 sq ft to 3,500 sq ft.

"We will sell individual units but if we get a good offer for an en bloc, we will consider," he told Business Times in an interview in Shah Alam, Selangor, recently.

Faliq said Naza TTDI will build niche lifestyle retail outlets with some 200,000 sq ft of space.

The final component of Platinum Park will include a luxury five-star 50-storey hotel, where construction will start after 2012.

Faliq said Naza TTDI is in negotiations with several international operators in Asia Pacific and Europe to run and manage the hotel.

Naza TTDI is also in talks with local and foreign investors who are keen to form joint ventures with the company to build the hotel or buy it over.

"We have several options. The end deal will depend on what we have on the table," Faliq said.

Naza TTDI will look at a few financing options to fund the lifestyle components.

"I am very excited with the Platinum Park development. My aim is to make it the most iconic project here. We are targeting to complete this project by 2016 or 2017," Faliq said.

Work in progress include three office towers, which will be built between March and December in 2013.

They include the 50-storey Naza Towers, which will be the Naza Group of Companies' new headquarters, and a 50- and 38-storey tower for plantation group Felda and a government-linked company, respectively.

The towers are designed to be "green buildings" through the efficient use of energy, water and materials.

Naza TTDI will apply for certification under the Green Building Index of Malaysia.

Naza TTDI has big overseas plans

By Sharen Kaur
Published in NST on June 14 2010

NAZA TTDI Sdn Bhd is mulling the idea of taking the TTDI brand overseas by building townships and mixed developments.

Group managing director SM Faliq SM Nasimuddin said the property company will focus on Asia Pacific and expects to start its maiden construction by 2013.

The plan will include building hotels to expand its leisure division.

"We are talking to investors and hope to form several partnerships with other property developers in Asia Pacific. We have to step outside of Malaysia to expand the growth of the company. We will look at every given opportunity," Faliq said in an interview with Business Times recently.


Faliq said he would like to replicate the multi-billion ringgit Taman Tun Dr Ismail (TTDI) township development in the region.

"We want to move forward with the TTDI brand. People always associate Naza with automotive (business). But we are more than that. We have diversified the group's strategies into other businesses. The core is still auto, followed by property development," he said.

Faliq, 25, is the fourth child of the late Tan Sri Nasimuddin, and probably Malaysia's youngest group MD.

He took control of Naza TTDI at the peak of the company's crisis, when he was 23.

"I saw the worst and was able to push things through. The company is strong and healthy now. We have a few projects in hand worth a combined RM8.5 billion, including Platinum Park, which I am very proud of," Faliq said.

Naza TTDI has unbilled sales of RM1.3 billion and is planning to launch new projects this year.

On how he manages the Naza Group's property and construction division as well as personal life, Faliq said being hands on is a key contributor.

"I spend most of my time in the office and I know exactly what is going on around. I read a lot of materials about the market place.

"This is still a family business. I am very close to all my siblings and we always sit together for dinner and talk about the day's happenings and how to achieve a new beginning. It is very exciting," Faliq said.

Faliq is a huge fan of the Ferrari Maserati and drives the marque himself to work.

He is active in sports and plays football, badminton and golf, occasionally, with his childhood friends.

Faliq is a firm believer of maintaining a healthy body and tries to visit the gymnasium once a week.

"I cannot live like any 25-year-old because of my responsibilities. When I have time, I make it possible for everything else that is not work-related," he said.

Investments in Iskandar set to hit RM70b by year-end

By Sharen Kaur
Published in NST on June 29 2010

ISKANDAR Investment Bhd (IIB) said investments in Iskandar Malaysia could hit RM70 billion by year-end as more investors eye Johor for expansion.

The region has attracted some RM60 billion of investments so far, said IIB president and chief executive officer Arlida Ariff.

Iskandar was expected to receive RM54 billion investments by end-2010. Under its Comprehensive Development Plan (CDP) 2006-2025, Iskandar was forecast to receive RM110 billion of investments.

Arlida said there have been more investments lately because of the infrastructure that have been put into place.

The improving economy and incentives like 10-year tax breaks in Medini in Iskandar has attracted investors. Companies can also bring in as much foreign capital and knowledge workers.

"We are talking to several players and will announce new deals by the end of this year," she said.

Arlida was speaking to Business Times yesterday after the signing ceremony between Education@Iskandar Sdn Bhd, an IIB unit, and the Management Development Institute of Singapore (MDIS) to set up an MDIS campus in EduCity, the 120ha education enclave in Nusajaya in Iskandar.

The event was witnessed by Minister of Higher Education Datuk Mohamed Khaled Nordin.

The MDIS campus, the third in EduCity, will cost RM163 million to build. It will open in 2013 and would attract 10,000 students.

The other two institutions at EduCity are UK's Newcastle University of Medicine and Netherland's Maritime Institute of Technology.

IIB is also in talks with two other universities to set up engineering and multi-programme schools in EduCity. One is with Singapore's Raffles Education Group.

Meanwhile, Khaled said the government plans to set up a centre of higher learning in Pagoh in north Johor, on land owned by Sime Darby Bhd.

"We are studying the plan. This centre will comprise local university branches. It will not rival Iskandar, which is more focused on attracting foreign universities," he said. -ENDS-

Aero Mall to liven up Senai airport

By Sharen Kaur
Published in NST on June 26 2010

Developments at the Senai International Airport in Johor are expected to accelerate following the set-up of the Aero Mall, a stand-alone and external airport mall.

  "There are now RM2.5 billion worth of ongoing projects at the airport area," Senai Airport Terminal Services Sdn Bhd (SATS) chief executive officer Datuk Mohd Sidik Shaik Osman told Business Times in an interview.

They include the RM2 billion Senai High Tech Park and the Free Zone Logistics and Aerospace Industrial Park.

Sidik said the Aero Mall, which will open on July 1, will set a new wave of development for SATS, which has 1,120ha surrounding the Senai airport.

The RM80 million, 173,338 sq ft mall is an integrated lifestyle complex adjoining the airport. It has 29 retail outlets and 30,000 sq ft piazza area. Some 70 per cent of the lots have been taken up for shopping, entertainment and dining facilities.

Sidik said that there are also plans for a cineplex and a digital complex.

"When we took over the airport in 2003, it was just a building to service passengers flying to Kuala Lumpur. We have expanded service to include flights to Penang, Kota Kinabalu and Kuching, and other facilities.

"Malaysia Airlines and AirAsia operate some 220 flights a week (out of the airport) and we hope that will be increased as we work to grow air traffic and passenger volume," Sidik said.

"Passenger traffic at the airport is now more than two million, including meeters and greeters. We expect this to double in the next three years."

Sidik expects new developments in Iskandar Malaysia in the state to contribute to the airport's growth.

Ongoing projects at Iskandar Malaysia include Legoland, premium factory outlets, universities and hospitals, targeted to be ready by 2012.

"Iskandar is expecting some four million visitors a year. We think this will increase air traffic and passenger volume. The airport can handle up to 4.5 million passengers a year before it requires any expansion."

On the Senai High Tech Park and the Free Zone Logistics, Sidik said that SATS might undertake a fund-raising exercise, in the form of internal funds and loans, to get the projects moving.

He is ambitious about both projects and is confident that they will attract investors.

The high-tech park has drawn interest from investors in the US, Europe and China who are in various sectors, including semiconductor and solar energy.

There are confirmed investments from China's EQ Solar Technology International Sdn Bhd, which will invest US$500 million (RM1.6 billion) to produce solar modules, and leading industrial gas provider MOX-Linde Gases Sdn Bhd, which plans to set up an industrial gas separation plant.

"We have incentives to attract investors. Those who come into the Iskandar region will enjoy low income tax, among other things," Sidik said.

Still, SATS may face stiff competion from Singapore, the KL International Airport and the Port Klang Free Zone, which are also aggressively attracting investors through various incentives.

-ENDS-

Mah Sing eyes 30pc sales abroad by 2015

By Sharen Kaur
Published in NST on June 26 2010

Mah Sing Group Bhd, the country's fifth largest property developer by revenue, expects overseas projects to contribute 30 per cent of total sales by 2015, group managing director Tan Sri Leong Hoy Kum said.

Currently, there is no contribution from overseas.

Mah Sing has a cash pile of RM233 million and plans to capitalise on opportunities in China, Singapore, Australia, Indonesia and Vietnam.

It will launch its maiden project early next year in Jiangsu province, China, with an investment cost of US$620 million (RM2 billion).

Mah Sing has a 51 per cent stake in the project, which is expected to contribute to its sales from next year.

"We want to replicate what we have been doing here and further enhance our image and branding to be one of the premier lifestyle regional developers. We want to grow big and satisfy our shareholders," Leong told reporters yesterday after the company's shareholder meeting in Kuala Lumpur.

Mah Sing's strong institutional shareholders, who collectively own 56 per cent of the company, include Permodalan Nasional Bhd, the Employees Provident Fund and Koperasi Permodalan Felda Bhd.

Mah Sing has 21 projects worth RM6.3 billion in the Klang Valley, Penang and Johor.

The company has set a sales target of RM1 billion this year. In the first three months, it raked in sales of RM601 million.

Leong said that Mah Sing was confident of exceeding its 2010 target with contributions from its new projects and unbilled sales of RM1.1 billion.

Among the projects to be launched in the second half of the year are the Icon Residence @ Mont'Kiara, M Suites @ Jalan Ampang, One Legenda in Cheras, Garden Residence and Garden Plaza in Cyberjaya, and Austin Suites in Johor Baru.

Mah Sing is also scouting for niche, quick-turnaround landbank in Kuala Lumpur, Penang and Johor and an area of more than 80ha in Selangor, Leong said.

"When we buy land, we want to launch immediately and lock in sales to pare down debts. Property business is a financial game. You have to manage your cash flow.

"We are not highly geared now. With good concept, branding and track record, we are able to sell well all our products. We are confident our niche products will attract locals and foreigners," he said.

Leong added that Mah Sing was keen to develop the prized government land in Sg Besi and Sg Buloh and had expressed its interest to the government. It also wants to lend a hand in the proposed international financial hub in Kuala Lumpur.

-ENDS-

Perdana Parckcity project in Hanoi delayed

By Sharen Kaur
Published in NST on June 21 2010

PERDANA ParkCity Sdn Bhd has rescheduled its launching of a billion ringgit township project in Hanoi to the fourth quarter of this year.

"We are excited about the project but we pulled the breaks as there is uncertainty in the market place, affecting buying sentiments.

"If you want to go to a place like Vietnam, you have to be prepared and the market has to be ready," group chief executive officer Lee Liam Chye said.


The 78ha housing project, dubbed ParkCity Hanoi, is valued at more than RM6 billion and was scheduled for July launch.

"We are ready to launch but we will wait and see how the market reacts over the next few months," Lee said in an interview in Kuala Lumpur recently.

ParkCity Hanoi comprises townvillas, townhouses, semi-detached homes, bungalows, condominiums as well as apartments. It is a replica of the company's ongoing Desa ParkCity township project in Bukit Menjalara, Kuala Lumpur.

The township will be developed in 15 phases and include a commercial belt, a community clubhouse, a central park and international schools.

It will be developed by The Vietnam International Township Development JSC, in which Perdana ParkCity has a 59 per cent stake.



Vietnam's Vinaconex-Hoang Thanh Urban Development and Investment JSC holds another 40 per cent in the joint venture, while the remaining 1 per cent is owned by a local Vietnamese businessman.

Lee said Perdana ParkCity expects to launch phase one and two of the project by December, comprising 1,200 units of three-storey terraced houses and apartments.

The 2,200 sq ft terraced houses are priced from RM1.4 million each and the apartments at around RM750 per sq ft, with sizes ranging from 950 sq ft to RM1,600 sq ft.

"We expect brisk sales when we launch as the Vietnam market is underserved in areas including offices, houses, retail, hotel and industrial. We will be targeting affluent Vietnamese," he said.

Lee said the company has taken possession of the land and completed earthworks.
-ENDS-

Perdana ParkCity eyes regional marts

By Sharen Kaur
Published in NST on June 21 2010
PERDANA ParkCity Sdn Bhd, a subsidiary of the timber-based Samling group, hopes to replicate its successful Desa ParkCity township model abroad, targeting Southeast Asia.

The company is looking for landbank of more than 120ha in Jakarta, its group chief executive officer Lee Liam Chye said.

"We will form joint ventures with landowners and developers. We think Asia is on an upstream and we are at the beginning of a recovery after a recession.

"For me, the sooner we get into actualising our vision to be a regional player the better it would be for the company," Lee said in an interview with Business Times in Kuala Lumpur recently.

Perdana ParkCity is now busy with its multi-billion ringgit Desa ParkCity project, which is expected to be completed by 2015.

It has a similar project in Hanoi worth more than RM6 billion, which will take eight years to develop.

Lee said township development will be the driving force for the company to grow into a regional player.

"There are reasonable margins to be made in township development. This year, we are expecting sales of RM650 million from our Desa ParkCity project and the money will be rolled over," he said.

Lee ruled out listing to raise funds for expansion.

"As a listed company, you are compelled to fix things short term and that does not go well with township developments. In township, we always fix things on long-term consideration," he said.

Lee said the company's recent win at the Fiabci World Congress in Bali, where it bagged the Fiabci Prix d'Excellence Awards 2010 for the Residential (Low Rise) Category, will put the company on good footing.

Fiabci is the acronym for the Paris-based International Real Estate Federation.

"We have a brand and taking that overseas will be easy for us. The Fiabci award comes at a time when we are looking to expand overseas," Lee said.

The award was for Perdana ParkCity's Adiva Parkhomes, one of 13 neighbourhoods at Desa ParkCity.

The 4.5-acre gated-and-guarded freehold strata-titled Adiva comprises 78 units of Parkhomes, 66 courtyard terraces and 16 courtyard apartments.

They were launched in July 2003 and completed and handed over in April 2006.

-ENDS-

Sunway to work with ministry to boost science and medicine

By Sharen Kaur
Published in NST on June 15 2010
 
THE Sunway Group will work with the Ministry of Health in research and development (R&D) in the area of science and medicine, said founder and chairman Tan Sri Jeffrey Cheah Fook Ling.

"Besides R&D, we will work on other areas with the ministry to churn out quality professionals and contribute to (the) medical (sector)," Cheah said.

The group's Jeffrey Cheah School of Medicine and Health Sciences houses the region's leading neuroscience facility, the Brain Research Institute at Monash University Sunway Campus in Bandar Sunway, Selangor.

Cheah was speaking to Business Times yesterday after the naming of the school and the beginning of a pharmacy course at Monash University.
Health Minister Datuk Liow Tiong Lai, Cheah and Monash University vice chancellor Professor Edward Byrne laid a time capsule to commemorate the event.

Cheah said the group is expanding Monash University, Sunway University College and the Jeffrey Cheah School by introducing new facilities.

It plans to offer more programmes to increase student population from the current 16,000, he said.

Monash University will add new facilities such as medicine and pharmacy research laboratories, classrooms, staff offices, and seminar rooms.

The university now has 5,000 students and there is a plan to grow this by 20 per cent by end-2011.

A hostel is being constructed for RM170 million to boost student population. It will be ready by end-2010 and can accommodate 1,800 students.

The three institutions, including Sunway International School, are part of the Jeffrey Cheah Foundation, the charity arm of the Sunway group.

-ENDS-

SPNB to call for LRT project tenders by June

By Sharen Kaur
Published in NST on June 25 2010

STATE-owned public transport operator Syarikat Prasarana Negara Bhd (SPNB) will call for tenders for Package A of the light rail transit (LRT) line extension in the Klang Valley by end of this month and award the contracts in November.

Package A includes contracts for main civil works for the Kelana Jaya line from the Kelana Jaya station to Summit USJ (9.2km) and for the Ampang line from the Sri Petaling station to Kinrara (7.4km).

It also includes sub-contracts for facility works for the supply of segmental box girders for both the lines, SPNB group managing director Datuk Idrose Mohamed said.

Following that, SPNB will call for tenders for 24 sub-contract works to build stations and park & ride facilities for each line.

"We will award the contracts to the most competitive bidders. We have pre-qualified 15 contractors for the main line and 17 sub- contractors for the facilities work," he told a media briefing in Kuala Lumpur yesterday.

"For the remaining sub-contract works, it will be opened to Class A contractors," Idrose added.

It is learnt that the contracts under Package A are worth some RM3 billion. Idrose declined to comment.

The whole LRT extension project is estimated to cost about RM9 billion.

Companies like Sunway Construction, IJM Construction, Muhibbah Engineering, MRCB Engineering, Gamuda, Ahmad Zaki, Loh & Loh Construction, MTDC-Persys, Mudajaya Corp Bhd, MMC-Zelan, WCT- Sinohydro, Ranhill-CCCC, UEM Builders-Intria Bina, Zabima-Leighton, Trans Resources Corp and Fajarbaru Builder-Signatium Construction are expected to bid for the main lines.

SPNB had earlier launched a RM4 billion bond programme to finance the initial stages of the project, of which RM2 billion has been drawn down, Idrose said.

It has so far awarded sub-contracts worth RM88 million to relocate telecommunications and TNB low voltage (underground) cables.

Idrose said it may launch a second bond programme for Package B, or look for other sources of funding.

Contracts for the system work under Package A will be called later when the whole alignment for the Ampang and Kelana Jaya LRT lines, which cover a total of 17.7km and 17km respectively, are approved, Idrose said.

SPNB now has sectional approval of the final railway scheme from the Department of Railways, covering a distance of 12km from the Kelana Jaya station to USJ Subang, while the approval for the Ampang line covers a distance of 15.2km from the Sri Petaling station to Taman Puchong Prima.

On talks that the LRT lines may be extended to Kota Damansara, Sungai Buloh and Cheras, Idrose said SPNB has a plan for it and will be ready when there is approval from the government.

   

-ENDS-

Mah Sing plans 'Icon City'

By Sharen Kaur
Published in NST on June 25 2010

 MAH Sing Group Bhd, the country's fifth largest property developer by revenue, plans to launch the "Icon City" in Selangor, its biggest commercial development thus far, which has a gross development value of over RM1.5 billion.

The project, which will be developed in phases, is located on 7.93ha site in SS8, Sungei Way, a site formerly occupied by Matsushita Group of Co.

Mah Sing had bought the land from Panasonic HA Air-Conditioning (M) Sdn Bhd for RM89 million or RM104.23 per sq ft. The deal was completed in March this year.

The land is situated at the crossroads of the Lebuhraya Damansara-Puchong and Federal Highway, making it strategic for development.
Initial plans for the land were to build three 17-storey serviced apartment buildings, a 16-storey hotel, five blocks of 25- to 31-storey office towers, a 20-storey small office home office block, 18 units of three-and-a-half-storey showrooms and 80 units of four-and-a-half-storey shop lots.

However, Mah Sing chief operating officer for commercial projects, Andy Chua, said the development plan for the five-year project is being modified to enhance its appeal.

"We are adding some unique and interesting concepts. We expect Icon City to be a new landmark for Petaling Jaya," Chua told Business Times.

He said Icon City will be a one-of-its-kind green and eco-friendly development with smart features and it will further enhance Malaysia as a property investment destination.

Chua added that the office towers will be tailor-made and sold en bloc while the apartments and shoplots will be kept for retail investors.

"We are bullish on the project as there is a pent-up demand for commercial properties in Petaling Jaya. Although the market may not be ready, but if the project is unique and special and people see the value of the properties, people will invest.

"A lot of companies are also moving to Petaling Jaya as an alternative to having an office in the Kuala Lumpur city centre. The rental yields are good here," he said.

Chua said Mah Sing aims to submit its final development plan to the local authorities by the third quarter of this year and start construction immediately.

It has started to demolish the Matsushita building and will complete the works by September, he said.

-ENDS-

SP Setia taking new tack with KL project

By Sharen Kaur
Published in NST on June 10 2010

SP Setia Bhd (8664), the country's largest property developer by sales, is targeting to launch its much-talked-about KL Eco City, a RM6 billion project in Kuala Lumpur, by December.


"We postponed the launch of KL Eco City previously because of what was happening globally. We hope this time the project will come on stream as planned," SP Setia president and chief executive officer Tan Sri Liew Kee Sin told reporters after visiting Balai Berita in Kuala Lumpur yesterday.

KL Eco City, described as a green mixed development, is located opposite Mid Valley Megamall. It will be developed in three phases over some 10 years.

SP Setia will build office towers, condominiums and signature offices, including an area for retail.

The project is a joint venture with Kuala Lumpur City Hall (DBKL), which owns the 9.7ha leasehold land in Kampung Haji Abdullah Hukum.

DBKL is partnering SP Setia on a profit-sharing basis, taking 20 per cent of the project's net profit.

Liew said he was upbeat about the project, among SP Setia's biggest.

"We will have a different marketing approach for KL Eco City. It will be something never done before - not by us nor any other developers in Malaysia."

Liew also expressed optimism that SP Setia would meet its RM2 billion sales target for the fiscal year ending October 31 2010.

Up to May 31 this year, it had achieved revenue of RM1.6 billion, attributed to property sales from its 10 ongoing projects in Malaysia and Vietnam.

Since last year, SP Setia has launched several marketing programmes to promote sales, including its popular "5/95 home loan package", which has been emulated by other property developers, and the "Best for the Best" scheme. The latest was the "Invest in Setia Homes".

SP Setia achieved its highest sales of RM1.65 billion last year in spite of the global economic turmoil.

-ENDS-

ExxonMobil may call bids for Tapis jobs

By Sharen Kaur
Published in NST on June 8 2010


EXXONMOBIL Exploration and Production Malaysia Inc is expected to call for bids to construct platforms and pipelines for its US$1 billion (RM3.3 billion) Tapis oil recovery project in Terengganu.

ExxonMobil Subsidiaries in Malaysia chairman Hugh Thompson said the company is currently in front-end engineering to identify the facilities that it will need for the Tapis oil field.

This will take a few months, he said on the sidelines of the Asia Oil and Gas Conference in Kuala Lumpur yesterday.

The Tapis oil development lies in a water depth of 64m, about 190km off Terengganu.


It was reported that leading fabricators like Malaysia Marine and Heavy Engineering Sdn Bhd, Kencana HL Sdn Bhd and Sime Darby Engineering Sdn Bhd are expected to bid for the contract to fabricate the platform.

The contract involves fabricating topsides of up to 20,000 tonnes and a 6,000-tonne eight-legged jacket and it should take about 24 months to complete. Offshore installation should take place by 2013 for production to commence.

"Tapis is important as it is another way to build partnership. It may lead to potential for us to do bigger projects here," Thompson said.

ExxonMobil has invested more than US$15 billion (RM50 billion) in Malaysia over the past 117 years.

The company signed last year a 25-year production sharing contract (PSC) with Petronas and Petronas Carigali Sdn Bhd to develop seven oil fields, namely Tapis, Seligi, Guntong, Semangkok, Irong Barat, Tabu and Palas.

Under the terms of the PSC, the three parties will spend a minimum of US$2.1 billion (RM6.9 billion) to undertake major enhanced oil recovery projects, rejuvenation of facilities as well as development and drilling activities in the fields.

This is currently the biggest project for ExxonMobil in Malaysia and it is looking for more jobs.

-ENDS-

Putrajaya Perdana bids for RM3b jobs

By Sharen Kaur
Published in NST on June 7 2010


PUTRAJAYA Perdana Bhd has bid for building and infrastructure projects worth more than RM3 billion this year as it is upbeat on the construction sector.

Chief executive officer Wie Hock Kiong said the group will eye private finance initiative projects under the 10th Malaysia Plan. It may also grow its concession business.

Putrajaya Perdana, via subsidiaries CMS Roads Sdn Bhd and CMS Pavement Sdn Bhd, holds a concession for road maintenance in Sarawak until 2017.

The group expects to do better this year because it has more projects in hand and the stable contribution from the concession division.

"Financially, we are strong and that gives us the edge to bid for large projects," Wie said after the company's shareholders meeting yesterday.

"The key challenge for us is the price of building materials, which is very volatile and there are more players in the market place," he said.

The group, which is focused in Malaysia, may look abroad for projects, riding on Saudi Arabia's PetroSaudi International Ltd's (PSI) international presence.

Diversified PSI is buying all shares in UBG Bhd, the parent of Putrajaya Perdana, for RM2.50 a share.

"We are waiting for the deal between PSI and UBG to be finalised. If PSI asked us to go overseas and bid for projects, we will. We are ready," Wie said.

Putrajaya Perdana's outstanding order book is worth more than RM1 billion. Its major on-going projects include a RM287.2 million contract to build a 50-storey office building at Naza TTDI's Platinum Park in Kuala Lumpur, and office buildings in Putrajaya and in Sarawak.

The group has one building project worth RM20 million in Abu Dhabi.

-ENDS-

Paramount to expand landbank

By Sharen Kaur
Published in NST on June 4, 2010

PROPERTY developer Paramount Corp Bhd said part of the proceeds from its 20 per cent stake sale in Jerneh Insurance Bhd will be used to buy land in the Klang Valley.

"Landbank is an important part of our strategic plan. We just bought 20ha in Cyberjaya, Selangor because of the location. We buy where there is success," managing director and chief executive officer Ong Keng Siew said.

Ong said it is selling its stake in Jerneh to focus on property development and education, which will continue to contribute 70:30 to its bottom line.

"It is very glamorous to diversify but to play the diversification game is not very attractive in the eyes of investors. We have a few options for the proceeds from the stake sale and it may include giving special dividends to shareholders," Ong said.

Paramount, with three ongoing projects, has RM207 million cash in hand and 390ha.

The company is planning to launch some RM2 billion worth of properties this year and next, Ong said after the company's shareholders meeting in Subang Jaya, Selangor yesterday.

Paramount plans to launch a 200ha mixed development project, dubbed "Banyan Hills" in Sg Petani, Kedah by the fourth quarter of this year.

Next year, it plans to start building the new KDU College campus and a mixed development on 8.7ha in Glenmarie, Shah Alam.

"We are relocating our branch campus in Section 13, Petaling Jaya to Glenmarie. We will redevelop the 2.1ha site into a high-end residential and commercial project in the near future," Ong said.

As for the land in Cyberjaya, Paramount plans to build mid-to high-end residential properties worth RM530 million, in two phases, starting next year.

Ong also said the company will hive off its loss-making English language centre in China.

It is talking to a buyer and expects to conclude the deal by the end of this year. Ong did not say how much it is selling the centre for.

"There is a lot to do in Malaysia in education. While the sector is tough as there are many players, we position ourselves as a quality education provider.

"We plan to build more campuses and international schools and are looking at the Iskandar Development Region in Johor. We want to increase our existing 8,000 student population," he said.

-ENDS-

Loh & Loh sets global path

By Sharen Kaur
Published in NST on June 3, 2010

BUILDER Loh & Loh Corp Bhd says the entry of Saudi Arabia's PetroSaudi International Ltd (PSI) in the group will provide a platform for Loh & Loh to bid for international water and energy projects.

On December 29 2009, PSI had offered to acquire all shares in UBG Bhd, the parent of Loh & Loh, for RM2.50 a share.

PSI said it plans to take private and delist UBG and its units Putrajaya Perdana Bhd and Loh & Loh, once the takeover of the three firms for RM1.4 billion is complete.

Negotiations between PSI and UBG on the entire exercise are still ongoing.

"Business will be as usual for us after the takeover. I cannot comment much on the exercise except that PSI will open up a lot of opportunities for Loh & Loh," chief executive officer Jason Loh said after the company's shareholders meeting in Kuala Lumpur yesterday.

Currently, Loh & Loh is focused in Malaysia and has bid for RM2 billion worth of water and energy projects, including road and bridges. It expects to secure some 25 per cent of the jobs, he said.

The company is eyeing new jobs, including the Kelana Jaya and Ampang light rail transit (LRT) extension and water projects.

"We will continue to bid and look at each tender to see how it fits into our order book. Tenaga Nasional Bhd (TNB) has a few jobs coming up and there are talks to build more hydroelectric dams.

"The Hulu Terengganu hydro project awarded to us in March by TNB will alleviate our plans to become a player in building hydro dams," Loh said.

Loh & Loh and its Chinese partner Sinohydro Corp Ltd have a letter of intent for civil works worth RM828 million for the project.

Loh said he is optimistic that the company will do better this year as it launches Idaman Hills in Selayang, comprising 38 semi-detached homes and 142 bungalows, and The Peak, a high-end residential gated project in Bandar Sri Damansara, worth a combined RM370 million, in June and by December, respectively.

Last year, the company posted a net profit of RM27.5 million, 16 per cent more than in 2008.