SP Setia hub sets green benchmark

By Sharen Kaur
sharen@nstp.com.my
Published in NST on October 22, 2010

P Setia Bhd's Setia City integrated commercial hub in Shah Alam, Selangor, will have 40 office towers with green certification over the next 10 to 15 years, its chief said.
Setia City is by far the only commercial hub that will have more than 40 buildings. It will include residential blocks, four-star hotel, retail mall, convention centre, hospital and university.

Setia City, estimated to be worth RM5 billion, will set a new benchmark where green development is concerned, SP Setia president and chief executive officer Tan Sri Liew Kee Sin said.

According to Liew, Setia City will be the first integrated project in the country to have all its buildings certified under the Green Building Index.

"While green buildings may not be a new phenomenon in the country, they are usually standalone structures," he said at the launch of Setia City by Housing and Local Government Minister Datuk Chor Chee Heung yesterday.

Setia City, sprawled over 96ha in Setia Alam, is expected to attract local and multinational companies, Liew said.

SP Setia is also selling land at Setia City and companies which buy the land can build their own towers to their specifications.

To date, Top Glove Corp Bhd and Khind Holdings Bhd have bought land to set up Grade A office towers as their new corporate headquarters.

Top Glove will build an 18-storey tower, while Khind is mulling over its plans.

SP Setia will also set up its corporate headquarters in a nine-storey building.

Ongoing works at Setia City include the 1.23 million sq ft Setia City Mall by Land Lease Australia.

On the hotel, university and hospital, Liew said the company will talk to local operators to run the facilities.

Meanwhile, Chor said his ministry and Bank Negara Malaysia were monitoring property price movements to prevent a housing bubble.

"We are still far from a property bubble. But we are monitoring and will take action against speculators," he said.

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100-storey tower to be PNB new HQ

By Shahriman Johari and Sharen Kaur

Published in NST on October 21, 2010

The tower forms part of Warisan Merdeka, which will be PNB's single biggest property project to date and its construction to create some 5,000 jobs.

  The 100-storey tower that forms part of Warisan Merdeka will be the new headquarters of Permodalan Nasional Bhd (PNB) as the fund manager is already thinking about redeveloping its existing head office.

Come 2016, its main building on Jalan Tun Razak, Kuala Lumpur, will be 30 years old. It is already fully occupied by PNB and its companies.

"We have to ensure we have occupancy. We need to move to this place. It will be mainly used by us and our investee companies," group chief executive officer Tan Sri Hamad Kama Piah Che Othman said at a briefing in Kuala Lumpur yesterday.

Warisan Merdeka, a 10-year mixed-development project estimated to cost RM5 billion, will be PNB's single biggest property project to date. Its construction is set to create some 5,000 jobs.

The tower alone, of about 525 metres, makes up half of the cost. The project will be done by PNB's wholly-owned PNB Merdeka Ventures Sdn Bhd, but it is open to having partners.

It may also sell part of the 14.6ha site, but this has yet to be finalised as it also wants to have recurring income from the properties.

"We must make sure returns prevail," Hamad Kama Piah said, adding that 8-10 per cent a year would be a good rate.

More importantly, Warisan Merdeka will boost the prices of residential, office and retail properties in the Golden Triangle, especially the Jalan Hang Tuah area, Pudu and Imbi, said Zerin Properties founder and chief executive officer Previn Singhe.

Property valuers said property prices shot up when the Petronas Twin Towers was built in 1985. Some foresee Warisan Merdeka to be the next KLCC.

"We need to look at the project very objectively. New York had five tallest towers in the world at any one time and they are all doing well," Previn said.

The land price in the Golden Triangle area is currently around RM2,000 per sq ft, while the net lettable area of a top office building is about RM800 per sq ft.

But valuers who were not so bullish said the key challenge is how to deal with traffic flow.

"You must look at the project site. It is very dense and road access and public transportation is limited. If the government can improve that, then we will have a different price outlook," said a valuer who declined to be named.

This was acknowledged by Hamad Kama Piah, who stressed that PNB has consultants working on the traffic issue. The cost of improving infrastructure in the area has also been factored into the overall RM5 billion cost, he explained.

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Move to make KL most livable city by 2020

By Sharen Kaur
sharen@nstp.com.my
Published in NST on October 20, 2010

THE aim to make Greater Kuala Lumpur a sustainable and livable city can easily be achieved with high-quality infrastructure, green spaces and developing inner city residential areas.

Minister of Federal Territories and Urban Wellbeing Datuk Raja Nong Chik Datuk Raja Zainal Abidin said a flexible strategic vision was necessary to foster competitiveness and build a comprehensive transportation linkage and network in the area.

He said projects like the RM40 billion mass rapid transit system (MRT), increasing pedestrian walkways and the Klang River beautification project to promote recreation, urban revitalisation and real- estate development will contribute in making Kuala Lumpur one of the most livable cities in the world by 2020.

"The Tenth Malaysia Plan has dedicated a whole chapter on the building of an environment that enhances the quality of life. We are encouraging better city designs and innovations," Raja Nong Chik said in his speech at the opening of the 2nd International Conference on World Class Sustainable Cities 2010 in Kuala Lumpur yesterday.

A sustainable city is a city designed with consideration of environmental impact to improve the quality of life. This includes ecological, cultural, political, institutional, social and economic components, without leaving a burden on the future generations.

"A thriving city will continue to grow. It is therefore vital to properly plan a city to meet future needs and challenges," he said.

The Greater KL is one of the National Key Economic Areas. It is expected to increase gross national income contribution from RM258 billion to RM650 billion per year.

The government wants to achieve top-20 ranking in the EIU Liveability Index Survey and grow the population from six million to 10 million, with a focus on growing the foreign talent base from 9 per cent to 20 per cent of the population.

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Big projects eye foreign tenants

By Sharen Kaur
sharen@nstp.com.my
Published in NST on October 20, 2010

The Matrade Centre and Warisan Merdeka, two large property projects worth a combined RM20 billion, will include offices that will be marketed to multinational companies (MNCs).
"The two projects will have office towers with full-fledged upmarket facilities, even better than the Petronas Twin Towers," Federal Territories and Urban Wellbeing Minister Datuk Raja Nong Chik Raja Zainal Abidin said.

The RM15 billion Matrade Centre will be built by the Naza group. It will include an exhibition centre, residences, offices, a mall and a hotel, spanning 26ha, under a privatisation deal with the government. The 10-year project will be launched next month.

Warisan Merdeka, located within the enclave of Merdeka Stadium and Stadium Negara, will have a 100-storey tower. The project, which will start next year and be completed in 2015, is an initiative by Permodalan Nasional Bhd (PNB). Little else is known about the project.

Raja Nong Chik said PNB has done its homework to ensure the project will be viable.

However, PNB will have to address the issue of limited road access as the project is located in a densely occupied area.

"The project is a good move by PNB, which is looking at various avenues to invest. But they must ensure that the tower is taken up as the money is coming from them. They are answerable to their shareholders.

"PNB also has to ensure that the building is attractive so that investors don't go to Singapore, Vietnam and India. We will lose then," he said.

Raja Nong Chik was speaking to reporters in Kuala Lumpur yesterday after opening the 2nd International Conference on World Class Sustainable Cities 2010.

He also said that the ministry aims to launch Invest KL by early next year. It will work with the Malaysian Investment Development Authority (Mida) to encourage MNCs to set up shop here.

The minister expressed confidence that the government would achieve its target of having 200 new MNCs by 2020. Currently, there are 1,800 MNCs in the country.

"While the number is small as compared with Shanghai, which has 16,000 MNCs, and (against the) 4,000 in Singapore, we hope to surpass 2,000 in 10 years."

Invest KL will target MNCs worldwide, especially from the Middle East, China and India.

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Govt to spend RM100m on Karambunai resort

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

DEVELOPER and resort operator Karambunai Corp Bhd (3115) will build an integrated eco-tourism resort (IR) in Kota Kinabalu, Sabah, for over RM3 billion.

In unveiling the 2011 Budget yesterday, Prime Minister Datuk Seri Najib Tun Razak said the government will allocate RM100 million to part-finance the development.

Najib said the project will start next year.

The IR project is now under planning and it will take about five years to complete.

It is learnt that the project, which may look like Singapore's Marina Bay Sands, will be developed over 200ha of land in the Karambunai peninsula.

Karambunai Corp has 600ha of land in the Karambunai peninsula. It has since 1997 used about 130ha to build the five-star Nexus Resort Karambunai, Nexus Golf Resort Karambunai and 200-odd units of luxury beachfront villas.

Company sources said the IR project will have four- and five-star hotels and resorts, waterfront properties and an entertainment centre.

It may also include a museum, cultural villages, a cable car and a theme park similar to the famed Disneyland.

"We have the support of the state-government, which is very pro-active in eco-tourism projects in Sabah. International experts will be roped in for the IR project to ensure that it attracts locals and foreigners, targeting a boost in tourism," one source said.

Sabah-based Karambunai Corp is linked to NagaCorp Ltd, which is listed in Hong Kong and operates a casino in Cambodia.

The two companies' common shareholder is Tan Sri Dr Chen Lip Keong, who founded NagaCorp and serves as its chief executive officer. Chen is president of Karambunai Corp.                                                                (ends)

Govt scheme to boost house ownership

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

TOWNSHIP developers are happy that the government is moving to help young adults with income of less than RM3,000 a month to own a home.

Prime Minister Datuk Seri Najib Razak said yesterday the government will introduce a scheme via Cagamas Bhd, which will provide a 10 per cent guarantee down payment for houses below RM220,000.

This scheme is for first-time house buyers. It allows them to own a home without having to pay the 10 per cent downpayment.

Najib said first-time house buyers purchasing homes under RM350,000 will be given a stamp duty exemption of 50 per cent.


Mah Sing Group Bhd group managing director Tan Sri Leong Hoy Kum applauded the move as it will reduce the cost of buying a home by as much as RM3,000.

Leong said it would directly and indirectly benefit the buyers of several of Mah Sing's projects, where the properties are priced below the RM350,000 range.

Mah Sing has double-storey homes in Bayu Sekamat, Hulu Langat, priced from RM240,000, and residential suites in Garden Plaza, Cyberjaya, priced from RM108,000.

To facilitate civil servants in owning houses, the government is raising the maximum loan eligibility to RM450,000 compared with RM360,000 currently, effective January 1 2011.

Glomac Bhd group executive vice-chairman Datuk Richard Fong said this will allow civil servants to own more expensive homes.

Fong said he expects the company's townships, especially Bandar Saujana Utama in Sg Buloh, to sell better.

"It is very encouraging for the property sector, for the civil servants and first time house buyers. While developers like Glomac will benefit, it will encourage more people to come forward and buy homes instead of shying away," he said.

Fong also said the government's move will be a big boost for properties priced below RM300,000.

(ENDS)

Mayland plans RM2b maiden project in Penang

By Sharen Kaur
sharen@nstp.com.my
Published in NST on October 15 2010

MALAYSIA Land Properties Sdn Bhd (Mayland) aims to launch its maiden project in Penang, a high-end seafront mixed development worth more than RM2 billion by 2013.


The company is looking at buying 12ha in Penang island, some of which will include reclaimed land, said its director Andrew Chiu.

"We want to lay something like a corner stone development in Penang. We hope to get the land within the next 12 to 18 months," Chiu said in an interview with Business Times in Kuala Lumpur recently.

Chiu said the Penang project will be something like the company's on-going integrated Plaza Damas development in Sri Hartamas, Kuala Lumpur, which started in 1998.

Mayland - founded by Chiu's father, Tan Sri David Chiu, a Hong Kong-based hotelier and property developer is focused currently on developments in the Klang Valley and Johor.

It is looking to launch several new projects and sub-phases within its existing developments.

By end-December, it will launch Elements, a 50:50 joint venture project located off Jalan Ampang, Kuala Lumpur, with Land & General (L&G) Bhd, a company which is about 20 per cent controlled by the senior Chiu.

The RM800 million project will comprise 1,040 units of high-end serviced apartments, each pegged at more than RM800 per sq ft.

In Johor, Mayland plans to launch the final phase of its RM300 million Palazio serviced apartment project in Mount Austin.

The entire project has six 14 to 21 storey residential towers, with a total of 1,828 units. The first four towers, launched in 2009 and early this year, are almost 90 per cent sold, Chiu said.

In the first half of 2011, Mayland will launch projects worth in excess of RM2 billion, starting with a residential development in Pelentong, Johor Baru.

Chiu said the project will have 3,000 serviced apartments in five blocks, worth almost RM1 billion.

In Country Heights Damansara, Mayland will launch 300 units of serviced apartments and 250 townhouses, on 4ha, for RM800 million.

"I feel we are at a beginning of a bullish market and I am confident that most of our projects will sell well under this circumstances.

"We have many repeat buyers, who have experienced our projects appreciating in value by more than 100 per cent. We don't just want to sell a property, but a dream ... a lifestyle," Chiu said.

Mayland still has 120ha of undeveloped land in the Klang Valley and 20ha in Johor. It is looking for more land to buy in Kuala Lumpur and Penang, he said.

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PJD to launch projects worth RM2b next year

By Sharen Kaur
sharen@nstp.com.my
Published in NST on October 12 2010

PJ Development Holdings Bhd (PJD) is set to unveil three new projects worth over RM2 billion next year as it is bullish that market will perform better on pent-up demand for high-end properties.


Managing director Wong Ah Chiew said he is confident that the new projects, located in hot spots like Sri Hartamas, Cheras and Kuantan, Pahang, will do well.

This year, PJD did not launch any new projects except for sub-phases in existing developments because of uncertainties in the market.

The company has five on-going projects, lasting it for the next five years. They are Swiss-Garden Residences at Jalan Pudu, Kuala Lumpur, Taman Putri Kulai and Mont' Callista in Johor, Taman Bukit Istana in Kuantan, and Ocean View in Butterworth, Penang.

"These projects have been selling well. For instance, Ocean View, a condominium development, is 80 per cent sold. We have a number of enquiries for new projects and that is why we are launching," Wong said.

In Sri Hartamas, PJD will launch Dutamas Kingsbury, located near Solaris, the bustling commercial centre of Mont' Kiara, by early next year.

Dutamas Kingsbury boasts over 200 condominium units, each with built-up of more than 2,000 sq ft, priced from RM650 per sq ft, and some 60 units of three-storey super link homes, with over 3,000 sq ft in built-up area, selling from RM3 million.

"Demand and choice are there and availability of land is scarce in the Mont' Kiara area. So we hope there will be good take-up," Wong said after the company's extraordinary general meeting in Kuala Lumpur yesterday.

In Cheras, PJD plans to launch an integrated development featuring retail lots, shopoffices, a mall and high-rise serviced apartments, by mid-2011.

Wong said the best project will be the resort-style development at Sg Karang in Kuantan, located close to Swiss-Garden Resort & Spa Kuantan.

The project, which is targeted for launch in the second half of next year, will comprise seafront condominiums, and a four- or five-star hotel.

"We expect that from 2011, when all these projects take off, our turnover from property development will increase. We have several other new projects in the planning stage," Wong said.

For fiscal year ended June 30 2010, PJD posted a net profit of RM52.8 million on revenue of RM666 million, whereby 40-odd per cent was contributed by property development.

PJD also runs a profitable power cable manufacturing business and owns the Swiss Garden chain of hotels.

"We will definitely perform better in the current year," he said.

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Mah Sing on aggressive land acquisition trail

By Sharen Kaur
sharen@nstp.com.my
Published in NST on October 9 2010

MAH Sing Group Bhd, the country's fifth largest property developer by revenue, is in talks with the government and private land owners to buy land in the Klang Valley, Penang and Johor.


Group managing director Tan Sri Leong Hoy Kum said the company is on an aggressive land acquisition trail.

For government land, Leong said Mah Sing is open to cooperation with relevant government-linked companies, but he declined to disclose the name of the company it is talking to.

"We are confident that we will lock in more land soon. We do not want to miss the chance to buy government land, more so with the mass rapid transit (MRT) project that is coming up.

"There are also many government projects being tendered out from now until the middle of next year ... so we must get ourselves ready to capitalise on the opportunity," Leong said.

The three-line MRT project, costing more than RM30 billion, is to improve public transport in the Klang Valley.

Mah Sing has RM300 million cash in hand, some of which will be used to buy land. By early next year, it expects to receive RM215 million from the sale of an eight-storey building to Koperasi Permodalan Felda Bhd.

"We have enough funds," Leong said yesterday after the company's extraordinary general meeting in Kuala Lumpur.

Mah Sing has 21 ongoing projects worth RM6.3 billion in the Klang Valley, Penang and Johor. It is planning 10 more projects, expected to be launched from year-end.

Among them are Kinrara Residence, a RM830 million medium- to high-end housing development in Puchong, featuring 836 bungalows as well as semi-detached and super-link homes.

Leong said he is confident the company's sales this year will surpass the RM1.5 billion mark, due to strong numbers already locked in from its balanced and diversified property portfolio. Up to July this year, it had raked in RM1.02 billion.

Leong also said that he is bullish on the property market for the next one to two years.

"We should not worry too much about over-heating. We are promoting Malaysia 'My Second Home' scheme in China, Singapore, Hong Kong, Taiwan and Europe. Some 10 per cent of foreigners contribute to our sales and we expect more going forward," he said.

Mah Sing also hopes the government will further open up its policies to encourage foreigners to buy properties in Malaysia, especially those in the high-end segment, he added.

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Tempo postpones listing plan

By Sharen Kaur
sharen@nstp.com.my
Published in NST on October 6 2010

TEMPO Properties Sdn Bhd has postponed plans to list on Bursa Malaysia next year as it wants to grow its size further.


"The listing is under consideration. Our immediate plan is to bring the company to a level where it is able to compete with the big boys," Tempo chief executive officer Khoo Boo Hian said.

Khoo said in 2008 that Tempo had been working towards fulfilling the profit requirements for a listing on the main board in 2011.

The company has been enjoying 40 per cent revenue growth every year for the last few years. In 2008, it posted RM60.5 million revenue.

Khoo told Business Times in an interview recently that the listing may now happen in the next 3 to 5 years.

"Our primary focus is to develop our existing project, The Atmosphere, and buy land to launch new high-end projects in Kuala Lumpur, to grow the company," Khoo said.

At present, The Atmosphere, a RM850 million mixed commercial project in Seri Kembangan, Selangor, is the company's biggest development.

It has 40 per cent stake in the project. Timber outfit Eksons Corp Bhd holds the remaining shares.

Khoo said Tempo is planning to launch a residential project worth RM160 million off Jalan Ampang in KL, by early next year.

"We are negotiating the land deal with the owner. We expect to ink the deal soon," Khoo said.

Tempo is buying less than 4ha to build two high-rise high-end residential towers of 548 units.
"We are re-looking at the building plans to see what else we can do to add value. We may rope in Eksons to work with us for the development," he said.

Khoo said Tempo is also in negotiations with other land owners in the Ampang area and within the vicinity of Mont' Kiara.

"We are happy to work with Eksons on The Atmosphere and in future projects. Together I believe, we can grow to greater heights," he said.

Tempo, though not part of Eksons, is deemed a related party to the group. Eksons group managing director Tay Hua Sin is a substantial shareholder in Tempo.

On going overseas, Khoo said Tempo has explored China and Vietnam but there are no concrete plans.

"We are serious about going overseas and have been talking to various parties. We are still studying both the markets," he said.

Glomac mulls expanding Damansara project

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

PROPERTY developer Glomac Bhd is re-looking at the development of Glomac Damansara in Petaling Jaya, Selangor, to include another residential block worth some RM130 million, its chief says.


The RM820 million project comprises two 26-storey serviced apartment blocks, a 25-storey office tower, a 16-storey office building, five- and eight-storey shop offices, two 11-storey office suites and a hybrid three-level retail mall.

Glomac group managing director Datuk FD Iskandar said there may be some changes to the plan as it takes into account demand for new homes.

The two apartment blocks with 348 units worth RM250 million or more than RM600 per sq ft, will be launched in December. More than 2,000 people have registered for them, Iskandar said.

"If we can sell the units within a month, then we will make adjustments. What we will do is instead of having two 11-storey office suites, we will have one with 25 floors.

"The space for the second office suites will be converted into residences with another 150 units," he told Business Times yesterday, after the company's shareholders meeting in Kelana Jaya.

The changes will raise the gross development value of the project to RM1 billion.

Glomac has sold the 25-storey office tower to Lembaga Tabung Haji for RM171 million and the shop offices for RM58 million.

The group has 14 ongoing projects, and Glomac Damansara is its biggest development. Next year, it will have 16 projects in hand.

Iskandar also told reporters at a press conference earlier that Glomac has up to RM3 billion worth of projects to launch over the next four to five years.

It aims to launch some RM600 million worth of new products a year, he said.

Glomac, which has 400ha of land, is eyeing to buy more in greater Klang Valley. It is also eyeing some government land, Iskandar said.

(ends)