E&O aims to grow F&B, property units in region

By Sharen Kaur
Published in NST on September 30 2010


EASTERN & Oriental Bhd (E&O) wants to expand regionally to grow its property development and food and beverage (F&B) units, its chief said.

The developer's businesses are currently in Kuala Lumpur and Penang, where it is involved in property development and investment, and operating hotels and restaurants.


Under the F&B division, E&O operates the Delicious Chain of restaurants in Malaysia and it wants to expand this to Singapore, Thailand and Indonesia, said its executive director, Eric Chan.

"F&B contributed some RM3 million to E&O's net profit last year and we aim to increase this going forward," Chan said yesterday, after the company's shareholders meeting in Kuala Lumpur.

E&O operates six Delicious outlets and one Chinese restaurant.

The company has RM500 million in its coffers to spearhead the F&B expansion. However, the bulk of the cash will be used to generate fresh cash flow by launching new projects and buying more land, Chan said.

On the property development front, Chan said E&O aims to launch flagship projects in Singapore and Jakarta, Indonesia, but there are no concrete plans yet.

"Our priority is to launch projects locally. We have more than RM4 billion worth of high-end housing projects to launch in Penang and Kuala Lumpur. We will launch as long as the market can take it.

"If there are no negative policies being implemented, then we expect the markets in Penang and Kuala Lumpur to be positive," he said.

Among the projects that E&O plans to launch are seafront terraces, villas and semi-detached homes in Penang, and condominiums at Jalan Yap Kwan Seng and Jalan Kia Peng as well as in Bukit Tunku in Kuala Lumpur.

Chan said E&O aims to achieve record sales of RM1 billion. No time frame was, however, given.

For its financial year ended March 31 2010, E&O posted RM70.5 million in net profit on revenue of RM352.4 million.

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Syed Mohamed set for IIB top job

By Shahriman Johari and Sharen Kaur
Published in NST on September 30 2010

Datuk Syed Mohamed Ibrahim, the property head at DRB-HICOM Bhd, is slated to join Iskandar Investment Bhd (IIB) as its chief executive officer (CEO), replacing Arlida Ariff who currently holds the post.

Arlida's contract expires at the end of this year and it is believed that her term will not be extended, sources said.   





"The offer has been made and he (Syed Mohamed) may even start this year," one of the sources said.

IIB confirmed that Arlida's contract finishes at the end of the year, but declined to comment further.
Syed Mohamed and Khazanah Nasional Bhd, the parent of IIB, also declined comment.

Syed Mohamed has been the group director of DRB-HICOM's property and infrastructure division since early this year.

He returned to Malaysia after a stint as chief operating officer of Seera City Real Estate Development Co, a firm leading the RM24 billion, 15-year project known as the "Knowledge Economic City" in Madinah, Saudi Arabia.


The city is one of six new cities being built by Saudi Arabia and is intended to be an education and technology hub.

Before that, Syed Mohamed was the CEO of Tabung Haji's property arm, TH Properties Sdn Bhd, the developer of Bandar Enstek, a RM9.2 billion township in Negri Sembilan.

He will succeed Arlida, an engineer by profession, who was appointed IIB executive director on July 2 2007. She became the president and CEO on January 1 2008.

Under her watch, IIB has brought in significant projects like the Legoland theme park, factory outlets, and some world-renowned universities.

The RM750 million theme park, which is among the main attractions at Medini North in Iskandar Malay sia, will be the fifth Legoland in the world and is scheduled to open in 2012.

Since the set-up of IIB in November 2006, the company has also awarded over RM3 billion worth of construction jobs in Iskandar Malaysia.

In Medini North, there are RM1.7 billion worth of ongoing projects, including Legoland Malaysia and 1Medini, a residential project by WCT Bhd and IIB.

Arlida said recently that she was in talks with several local and foreign investors to build a three-star resort hotel, a four-star business hotel, a retail mall and a high-rise tower in Medini North worth RM1 billion.

IIB is also trying to get two other universities to set up engineering and multi-programme schools in EduCity, the 120ha education enclave in Nusajaya. One is with Singapore's Raffles Education Group.

In June, IIB signed a deal with the Management Development Institute of Singapore (MDIS) to set up an MDIS campus in EduCity.

The MDIS campus is the third in EduCity, the other two institutions being the UK's Newcastle University of Medicine and the Netherland's Maritime Institute of Technology.

Bina Puri to develop Medini project in 2011

By Sharen Kaur
Published in NST on September 8 2010

BINA Puri Holdings Bhd will develop its flagship commercial project worth RM500 million in Medini North in Iskandar Malaysia, Johor, from early next year.

The construction group yesterday inked a deal with Medini Land Sdn Bhd, a unit of Iskandar Investment Bhd (IIB), to jointly develop the 2.8ha project, known as Medini Square, via Medini Square Sdn Bhd.

Bina Puri holds 80 per cent of Medini Square, which will build retail, shop-offices and two 23-storey towers, each comprising small office/home office (SOHO) and office units.

Medini Square will have 1.05 million square feet of gross floor area, Bina Puri chairman Datuk Wong Foon Meng said after the signing ceremony in Kuala Lumpur yesterday.

"This is a strategic move for Bina Puri and we hope to be the catalytic developer and mover to attract other investors into Medini North," he said.

Bina Puri, which has RM2.5 billion worth of ongoing construction works, is eyeing several infrastructure projects, including in Iskandar Malaysia.

It has bid for projects worth RM4 billion here, in the Middle East, Pakistan, Brunei and Thailand and it expects a 10 per cent success rate.

Meanwhile, IIB president and chief executive officer Arlida Ariff said Medini Square will spur new developments in Medini North.

It will also complement the RM1.7 billion worth of ongoing projects in Medini North, namely Legoland Malaysia and 1Medini, a residential project by WCT Bhd and IIB, she said.

IIB is in talks with several local and foreign investors to build a three-star resort hotel, a four-star business hotel, a retail mall and a high-rise tower in Medini North worth RM1 billion.
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Wing Tai to launch projects in Malaysia

By Sharen Kaur
Published in NST on September 6 2010

WING Tai Holdings Ltd, a property developer, will launch several new projects in Malaysia as it is bullish on the market, its deputy chairman Edmund Cheng said.

Wing Tai will continue to develop high-end properties in the Klang Valley. It currently has 80ha of land in Kuala Lumpur and Penang.

"We are looking to increase our landbank in the Klang Valley, and work with suitable partners," he said.

Wing Tai, through its Malaysian-listed unit DNP Holdings Bhd, will launch Kondominium Nobleton Crest at Jalan U-Thant in Kuala Lumpur in 2011, pending market conditions.
 

The project comprises three blocks of low-rise residences.

It will also launch a prime development in Jalan Ampang, Kuala Lumpur, comprising two blocks of 49-storey and 43-storey serviced residences.

The project, on a freehold site spanning 0.6ha, is under construction.

"Work is progressing well. The launch will depend on market conditions. The market can expect several other exciting projects," Cheng said in a recent interview with Business Times in Singapore.

Wing Tai, through DNP, is currently developing Verticas Residensi, 423 units of freehold condominium in the Bukit Ceylon enclave.

Cheng said the project has received good response from the preview of its Tower A in July 2009.

Tower B was officially launched in January 2010 and the units have been quite well received, he said.

Verticas is under construction and it is expected to be completed in 2012.

Its other ongoing developments are in Penang. They are Sentral Greens in Relau, Phase 2 of BM Utama in Butterworth, and Phases 4 and 5 of Taman Seri Impian, comprising terraced and semi-detached houses.

Wing Tai started in Hong Kong as a garment manufacturer in the 1950s. It expanded its business in Malaysia in the 1960s and has developed over 70 projects to date.

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Wing Tai upbeat despite Singapore property move

By Sharen Kaur
Published in NST on September 6 2010

STRONG demand for high-end properties in Singapore means that property developers who build assets in that segment won't be affected by the island republic's measures to cool the property market.

Singapore had put a 70 per cent cap on loan-to-property-value for second mortgages, among other measures, to prevent the market from overheating.

Property developer Wing Tai Holdings Ltd deputy chairman Edmund Cheng said at the launch of its luxury project Belle Vue Residences in Singapore last week that the new curbs will not affect the group.

"The measures are few but for genuine buyers it is still okay. It may affect upgraders. Most of our projects are upper middle, high-end and super high-end, so the impact is not much," he said.

"Wing Tai will continue to launch new projects as there is pent-up demand for high-end properties, especially among international investors and home seekers," he added.

Foreign buyers generally make up about 29 per cent of Singapore's property market, Cheng said.

Meanwhile, Wing Tai may replicate Belle Vue Residences, its most valuable residential project worth S$350 million (RM812 million), in other Asia Pacific countries.

The project may be developed in Hong Kong, China or Malaysia, provided there is suitable land and Japan's renowned architect Toyo Ito agrees to design it.

Belle Vue was designed by Ito, whose free-flowing spaces and designs mirror the rhythms and patterns of organic growth. This is his first residential project outside of Japan.

Some 62 per cent of its 167 units have been sold, mostly to international property buyers, at between S$2,000 (RM4,640) per sq ft and S$2,300 (RM5,336) psf.

The project was launched in phases starting August 2008 and the remaining units will sell from S$2,300 psf to S$2,800 (RM6,496) psf.

Cheng said he was confident that the project will be fully taken up soon.

"Belle Vue is our best project but we are aiming for another best development," Cheng said.

Belle Vue, located on Orchard Road, is designed to parallel nature's simplicity.


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PKNS picks RM10b projects for REIT plan

By Sharen Kaur
Published in NST on 2 September 2010

SELANGOR State Development Corp (PKNS) has identified 16 high-profile projects worth RM10 billion for future injection into its real estate investment trust (REIT), its chief said.

PKNS general manager Othman Omar said six of the projects have been confirmed. They are Datum Jelatek in Kuala Lumpur, PJ Elevated City, PJ Sentral Garden City and Kelana Sports City in Petaling Jaya, Selangor Science Park 2 in Sepang and the proposed Healthcare City.

Othman said the development site for the remaining 10 projects is expected to be finalised soon.

PKNS aims to launch a REIT soon and it plans to initially inject Menara PKNS in Section 7, Petaling Jaya, Kompleks PKNS and SACC Mall in Shah Alam, with net value of over RM270 million.

"We are excited about the REIT because the proposed injection is a strategic exercise which enables us to leverage on three prime assets to recapitalise," Othman said in an interview with Business Times.

He said the average yield expected from the three properties after a revision to the rental agreements is 7-8 per cent.

Othman said the ability to realise the latent value of PKNS properties will mean a capital gain of RM80 million, RM162 million in cash and a subsequent 30 per cent stake in Amanah Raya's Real Estate Investment Trust (ARREIT).

"Assuming that dividend yield holds constant at 8.5 per cent, we should be looking at RM16 million in additional revenue per year, which bodes well for our liquidity," he said.

PKNS hopes to complete the exercise by the fourth quarter of this year.

Othman said in the medium to long term, PKNS will work with its partners to build and strengthen the asset base of its REIT investments, and when viable, inject more high-profile projects in the Klang Valley to increase the profile and attract foreign investors and fund managers to the investment potential.

He added that with new projects in place, PKNS foresees ARREIT to grow above RM1.5 billion in the next three to four years.

"We are launching the REIT as part of our strategy to transform PKNS group-wide, and a key aspect of that strategy calls for a rationalisation of our assets.

"REITs allow us a ready and stable way to unlock the latent value in these properties and provide significant additional capital which will allow us to be more competitive.

"This is addition to the alternative revenue stream we hope to create in the form of dividends, and the diversifying of our portfolio into properties outside of the state," Othman said.

He is optimistic with the future prospects and development of the REIT industry.

"Malaysia's REITs market is poised with more potential given that it is still relatively limited in terms of diversity, and there remains a lot more areas in which we can explore.

"For example, Hong Kong has long included government premises and even urban car parks in its REITs, given its very real returns ability. Some 40 per cent of Japan's REITs are retail based, and its 25 per cent in Singapore. These are all areas we can look at," he said. 

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Selangor Dredging bullish on sales

By Sharen Kaur
sharen@nstp.com.my
Published in NST on 27 August 2010

SELANGOR Dredging Bhd expects future earnings to improve as it aims to launch several new projects in Klang Valley and Singapore worth a combined RM1 billion over the next two years.

Its unbilled sales of RM650 million from its recent launches namely Five Stones in Petaling Jaya, 20trees West in Kuala Lumpur and Gilstead Two in Singapore will also drive growth, chairman Eddy Chieng Ing Huong said.

Last year, Selangor Dredging posted a net profit of RM18 million, four per cent more than in 2008.

"We will continue to capitalise on the projects we have launched. From the unbilled sales, it is quite clear the company will do well," Chieng said after the company's shareholder meeting in Kuala Lumpur yesterday.

Selangor Dredging has five ongoing projects, two in Taman Melawati in Kuala Lumpur, one in Petaling Jaya and two in Singapore worth RM1.2 billion, which will last another four years.

Chieng said the projects have garnered an average 80 per cent sales over the past 12 months.

The condominiums and bungalows are priced at more than RM1 million and RM3.5 million, respectivly. For the project in Singapore, the apartments are worth more than S$1.8 million (RM4.8 million) each.

"We are able to sell our projects at a premium because of the concept. Our purchasers like what we sell and we do not price ourselves like a commodity.

"A lot of our purchasers buy a collection of properties here and in Singapore. Buyers are very discerning. Even during bad times they buy," he said.

Chieng said in the next six months it will launch Dedaun off Jalan Ampang, comprising low-rise condominiums, and 262, Balestier Road in Singapore, which is a commercial and residential development, both worth some RM350 million.

It then plans to launch high-end apartments in Batu Feringgi in Penang, a commercial development next to Five Stones, landed housing in Puchong and Dengkil, and a residential project in Singapore.

On the controversial Damansara 21 hillslope project in Bukit Damansara, Chieng said the company is awaiting the approval from the authorities, including City Hall, on when works can start.

A stopwork order was issued some 30 months ago on the project, which consists of 21 bungalows priced RM10 million to RM15 million each, following the Bukit Antarabangsa landslide incident.
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Dijaya plans RM1.2b high-end projects by year-end

By Sharen Kaur
sharen@nstp.com.my
Published in NST on 1 September 2010

Property developer Dijaya Corp Bhd aims to launch four new high-end projects worth RM1.2 billion before year-end as it is bullish on the market, its chief said.
Dijaya plans to launch its Casa Tropicana condominium and Tropicana Avenue office development at Tropicana Golf and Country Resort in Petaling Jaya, Selangor, within the next one month.

Casa Tropicana has 296 units worth RM138 million or more than RM400,000 each, ranging from 986 sq ft to 1,400 sq ft.

Tropicana Avenue, worth RM336 million, comprises 442 offices. Sizes start at 885 sq ft and each office is priced at RM400,000 onwards.

Dijaya managing director Datuk Tong Kien Onn said the two projects have received overwhelming enquiries from buyers including foreigners.

"We expect the projects to do well. There are discerning buyers who want to put their money into properties as an investment," Tong said in an interview with Business Times.

Tong said the company's recent launches namely, Grand Villas and Pool Villas at Tropicana Indah Resort Homes in Petaling Jaya enjoyed good sales.

In May, Dijaya launched Grande Villas, comprising 12 bungalows worth RM61 million. One third has been sold, with each unit being priced at RM5.5 million onwards.

A month later, it launched Pool Villas, which are 54 units of semi-detached homes worth RM194 million or from RM3.6 million each. A few units have been taken up.

Tong said by December it will launch Tropics @ Sg Long in Cheras, where it has 10.7ha of land.

He said the project will comprise semi-detached homes, zero lot and link houses worth over RM200 million.

Also in December, Dijaya will launch Phase One of Tropicana City@Danga Bay, its RM3.8 billion integrated waterfront flagship project in Johor.

Phase One will feature some 700 units of upper middle serviced apartments in three blocks, worth RM600 million or more than RM600 per sq ft each.
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Dijaya to launch Danga Bay project by Dec

By Sharen Kaur
sharen@nstp.com.my
Published in NST on August 16 2010

DIJAYA Corp Bhd will launch phase one of Tropicana City@ Danga Bay, its RM3.8 billion integrated waterfront flagship project in Johor by December this year, its chief said.

Phase one will feature some 700 units of upper middle serviced apartments in three blocks, worth RM600 million or more than RM600 per sq ft each, managing director Datuk Tong Kien Onn said.

"We hope to start construction by December and realise the units block by block. Piling works have been completed. We are confident of the project," Tong said in an interview with Business Times in Kuala Lumpur recently.

Dijaya is developing 14.8ha of prime waterfront land at Danga Bay in Johor Baru over the next 10-12 years with Iskandar Water Front Sdn Bhd (IWSB).

Goldhill Quest Sdn Bhd - a 60:40 joint-venture between Nagasari Cerdas Sdn Bhd (a Dijaya unit), and Global Corp Development Bhd (owned by IWSB) - bought the land from Danga Bay Sdn Bhd for RM308 million or RM190 per sq ft.

It is one of the biggest private land deals since the inception of Iskandar Malaysia in 2006, where it is located.

Goldhill plans to build a retail street mall, office towers and residences, SoHo (small office/home office) and a four- or five-star hotel.

"We are still working out the components. The project will be similar to the Mid Valley development. But our mall will be different as it will focus on food and entertainment," Tong said.

Tong said Dijaya is targeting homeowners, expatriates and investors from Asia Pacific and Europe.

He said there will be spillover from Singapore with the opening of Resorts World Sentosa and The Marina Sands resort, where each have said they will employ more than 35,000 people when the projects are fully completed.

"We expect many of the staff to be relocated to Johor. Singapore expects 10 million additional tourists a year and we hope to ride on that with the opening of a four- or five-star hotel within our development.

"We may look at international operators like Starwood or Ritz Carlton Group to run the hotel. Nothing is on the cards yet as the hotel will be developed at a later stage," Tong said.

Dijaya, known for its flagship Tropicana Golf and Country Resort development in Petaling Jaya, has RM290 million cash in hand which it will partly use to start the development, Tong said.

"We will look at bank loans but we are expecting the project to be self-financing later," he said.


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