Property players upbeat, credit resilient Malaysia's economy

By Sharen Kaur
sharen@nstp.com.my
Published in NST on December 31, 2012

HOME DRIVEN: Sector expected to do better next year, thanks to domestic investments PROPERTY developers are general optimistic on the property market outlook for 2013, as Malaysia targets a five per cent growth in gross domestic product (GDP) despite weak exports.

Bank Negara Malaysia governor Tan Sri Zeti Akhtar Aziz has reiterated her optimism that the economy will continue to do well in 2013 despite challenges in the global economy.

The GDP growth target of five per cent will be made possible by the resilience displayed by the domestic economy, fuelled by local private investments.

Mah Sing Group Bhd group managing director Tan Sri Leong Hoy Kum is certain that the overall property industry will do better next year as it is highly dependent on the domestic market.

"As long as the properties have good concepts, are in the right location, and they cater to market demand, it will do well. We are supported by young demographics which continue to form new households, high savings rate and low unemployment rate.

"As long as income remains intact and properties remain affordable, the local property market should continue to remain resilient and serve as a hedge against inflation," Leong told Business Times.

He expects the residential market to continue being the main driver for property sales next year, similar to previous years' trends.

Leong said Mah Sing will be focusing on landed residential projects and niche size high-rise projects, which amounts to 77 per cent of the group's RM3 billion sales target for 2013.

In the commercial segment, he said retail offices in good schemes, smaller SoHo (small office/home office) and SoVo (small office/versatile office) properties would also do well due to the affordable price points and lack of supply in selected locations, especially in integrated development projects.

"We are also confident about mass market housing for the middle-income class where there is a pent-up demand for basic shelter. Mah Sing will continue its land banking exercises next year," Leong said.

Mah Sing is one of the more active developers in terms of landbanking. It set a RM5 billion gross development value landbanking target for 2012 but had exceeded that by 18 per cent.

Meanwhile, Sunway REIT Management Sdn Bhd chief executive officer Datuk Jeffrey Ng expects the office sub-sector to remain challenging as a result of oversupply situation and stiff competition.

He said rentals are expected to remain stagnant or on a declining trend.

On demand side, it will be driven by relocation of tenants from older office buildings to newer towers with better specifications.

Ng also expects more competition in the hospitality sector with the incoming supply of five-star hotels such as St Regis and Banyan Tree.

"More supply equates to more competitive environment. Under such circumstances, it is the survival of the fittest where hotel operators with strong brandname and track records will have competitive advantage over other hotel operators," he said.

Sunway REIT portfolio swells

By Sharen Kaur 

sharen@nstp.com.my

Published in NST on dECEMBER 27, 2012

Sunway REIT, Malaysia's largest real estate investment trust, is upbeat its total assets under management will exceed RM7 billion in three to five years.

This will be driven by the RM3 billion pipeline assets it has and third-party acquisitions, Sunway REIT Management Sdn Bhd chief executive officer Datuk Jeffrey Ng told Business Times.

For third-party acquisitions, the focus is on retail or mixed-use assets with strong growth prospects, in large and high growth cities here, Ng said.

Listed on Bursa Malaysia's Main Market in 2010, Sunway REIT is the largest REIT, in terms of asset size.

Its total assets under management will reach RM4.95 billion after the acquisition of Sunway Medical Center (SMC) by end of this month.

Sunway REIT, also one of the largest retail-focused REITs in Malaysia, has obtained the approval from unitholders to buy SMC for RM310 million.

With the acquisition, Sunway REIT's portfolio will expand to 12 properties.

"By acquiring SMC, Sunway REIT is adding yet another quality asset into its portfolio. More importantly, SMC is a leading private healthcare centre that is located within the Sunway Resort City township, alongside with four other Sunway REIT assets.

"It is the synergistic fit into the township assets that is more crucial to us instead of a standalone property.

"We will only consider other asset classes provided that they are located in townships, master-planned and developed by our sponsor (Sunway Bhd)," Ng said.

The inclusion of SMC will diversify the income stream of Sunway REIT.

Sunway REIT has entered into a master-lease arrangement with the hospital operator for an initial term of 10 years with the option to renew it for another 10 years.

The deal is based on a pre-agreed initial rental of RM19 million for the first year and annual incremental rental of 3.5 per cent for the remaining nine years of the initial term.

Ng said under the master-lease structure, Sunway REIT enjoys certainty in income stream with a guaranteed incremental rental reversion.

Going forward, Ng said Sunway REIT's strategy is to remain focused on retail with at least 60 per cent of its assets in the retail segment, measured by either asset size, revenue or net property income.

Sunway REIT remains bullish on the retail sector on the back of strong consumerism, young population and growing affluence of the nation, in line with government's aspiration to achieve a high income nation by 2020.

"We are also optimistic of prospects of the hospitality sector, where the tourism business will benefit from the government's ongoing promotional activities to boost tourist arrivals ahead of Visit Malaysia Year 2014," Ng said.

Iskandar Investment expects earnings to take off next year

By Sharen Kaur

sharen@nstp.com.my

Published in NST on December 25, 2012

ON SOUND FOOTING: Company sees recurring income from completed projects in Iskandar Malaysia

ISKANDAR Investment Bhd (IIB) expects earnings to improve next year as it generates recurring income from completed projects in Iskandar Malaysia, Johor, said its president and chief executive officer Datuk Syed Mohamed Syed Ibrahim.

IIB, which is 60 per cent-owned by Khazanah Nasional Bhd, also expects strong returns in the form of dividends from its investments in several joint venture developments with the likes of UEM Land Holdings Bhd and Sunway Bhd.

Syed Mohamed, however, declined to comment on IIB's expected net profit and revenue for fiscal years 2012 and 2013.

He said IIB is currently "profitable" and that the global financial meltdown has so far not had an impact on its performance, including its developments in the Iskandar region.

According to its audited financial statement for fiscal 2010, IIB's total net operating revenues rose 60.27 per cent from RM488,280 to RM782,571.

Its operating results increased from a loss of RM80,779 in 2009 to a profit of RM13,381 a year later.

The other shareholders of IIB, which was set up in 2006 as a strategic developer of catalytic projects in Iskandar Malaysia, are the Employees Provident Fund and Kumpulan Prasarana Rakyat Johor Bhd, who each own a 20 per cent stake in the company.

As the catalyst of change, IIB promotes, coordinates and invests in strategic and catalytic initiatives through joint ventures or contribution of land, either through sale or lease, or granting of a concession or development rights.

IIB is developing four clusters - education, driven by Educity; leisure and tourism, led by LegoLand; healthcare and wellness, with Gleneagles Medini Hospital being the key driver; and creative development, with Pinewood Iskandar Malaysia Studios as the catalytic project.

Thus far, Legoland has been completed along with several universities at Educity, including Newcastle University, the University of Southampton Malaysia campus, Raffles University Iskandar and Marlborough College.

Meanwhile, Syed Mohamed said there are no plans to list IIB on the local bourse to fund future expansion.

On how IIB intends to fund new catalytic projects, he said it will partly use internal funds as the recurring income base builds up.

Business Times recently reported that IIB is mulling the possibility of selling some of its operating assets in Johor to help fund the next stage of development in Iskandar Malaysia.

IIB has received offers from local and European fund managers and asset management companies for the assets it owns, especially those in Educity.

"We are not selling the assets currently. Going forward, because of such request, IIB can package the sale of new income recurring assets with yield that will match their expectations," said Syed Mohamed.

Cargo line plan revival?

By Sharen Kaur
sharen@nstp.com.my
Published in NST on December 22, 2012

The Land Public Transport Commission (SPAD) will undertake a study on the viability of building a new railway line for cargo services in Port Klang.

SPAD chief operating officer Mohd Nur Kamal said the possible new route, linking Serendah to Port Klang, is to help divert cargo traffic from the main KTM freight line between Rawang and Seremban, which is currently facing a bottleneck.

Business Times learnt that the line (Serendah-Port Klang) will stretch about 100km and may cost about RM4 billion to build.

The idea to build the line was first mooted in 2008.

KTMB was directed by the government to carry out a preliminary engineering and route alignment study for the Serendah-Port Klang-Seremban by-pass line in September 2008 but the efforts did not materialise.
It was reported recently that the government was planning to revive a plan to build the line.

It was also reported that the front runner for the job is a joint venture comprising Malaysian Resources Corp Bhd (MRCB) and DMIA Sdn Bhd.

"It is in our masterplan to build the line (Serendah-Port Klang). But we have not started any study on the matter as the government hasn't approved it," Mohd Nur Kamal told Business Times in a telephone interview.

Mohd Nur Kamal squashed talks that SPAD had received several proposals from companies to build the railway line, including from the MRCB-DMIA joint venture.

An official from MRCB said there is nothing in the works regarding the building of the Serendah-Port Klang line.

"We have not established a joint venture, or signed agreements with any party. There is no draft created. We are interested in the project, as well as other developments," he said.

The Serendah-Port Klang link is one of two routes that the government is looking to implement under Keretapi Tanah Melayu Bhd (KTMB)'s freight relief line plan to divert cargo trains from Kuala Lumpur to Port Klang.

The other is a line connecting the KTM station in Subang Jaya to Subang Skypark at the Sultan Abdul Aziz Shah Airport, and then to the Sungai Buloh KTM station and the Sungai Buloh-Kajang mass rapid transit system.

Business Times reported a year ago that the government had given Subang Skypark Sdn Bhd the nod to build the link from the KTM station in Subang Jaya to Subang Skypark, at a cost of around RM500 million.

The two lines will help boost KTMB's freight division, which, according to its president Datuk Elias Kadir, had registered losses of about RM60 million last year.

Iskandar Investment mulls asset sales

By Sharen Kaur
sharen@nstp.com.my
Published in NST on December 14, 2012

BUYING INTEREST: Local and European fund managers, and asset management firms have sounded out IIB on possible sales 
ISKANDAR Investment Bhd (IIB) is mulling the possibility of selling some of its operating assets in Johor to help fund the next stage of its massive development plan in the area.

Business Times was told that both local and European fund managers, and asset management firms have sounded out IIB on possible sales of the assets.

In the event IIB does indeed sell some of the assets, it would be a first time for the company, which is 60 per cent owned by Khazanah Nasional Bhd.

The other shareholders of IIB, which was set up in 2006 as a strategic developer of catalytic projects in Iskandar Malaysia, are Employees Provident Fund and Kumpulan Prasarana Rakyat Johor Bhd, who each owns a 20 per cent stake in the company.

Analysts point out that the landscape in Johor is changing very quickly, with another Kumpulan Prasarana Rakyat-linked company also deciding to directly sell land to a third party, instead of entering into a joint venture.

A week ago, Iskandar Waterfront Holdings Sdn Bhd, a 40 per cent unit of Kumpulan Prasarana Rakyat, inked a deal to sell some 55ha of land for nearly RM900 million to Hong Kong-listed Country Garden Holdings.

Iskandar Waterfront is 60 per cent controlled by tycoon Tan Sri Lim Kang Hoo.

"They (the funds and asset management companies) are looking at good-yielding assets within the four clusters that we are developing in the Iskandar region. They asked us if we were selling and we are discussing with them now," IIB president and chief executive officer Datuk Syed Mohamed Syed Ibrahim said.

Syed Mohamed said that going forward, because of such request, IIB can package the sale of new income recurring assets with yield that will match their expectation.

"What we would get is immediate sale of our properties, which will be quite useful to fund our next catalytic projects. The next stage of growth for IIB would be self-driven," he told Business Times in an interview.


IIB is developing four clusters - education, driven by Educity; leisure and tourism, led by LegoLand; healthcare and wellness, with Gleneagles Medini Hospital being the key driver; and creative development, with Pinewood Iskandar Malaysia Studios as the catalytic project.

Iskandar Malaysia, one of the country's core special economic zone, is seeking to be self-sufficient in its future capital expenditure.

The Iskandar project has thus brought in committed investments to the tune of RM105.13 billion over the past six years.

"All the while we thought we would fund catalyst projects using our own sources. Not anymore. We see that opportunities created as a result of what we are doing, we will get the necessary income," Syed Mohamed said.

Pressed on the assets which have attracted third parties, Syed Mohamed said a few parties are interested in its education offering. 

At Educity, IIB has built Newcastle University, the University of Southampton Malaysia campus, Raffles University Iskandar, Marlborough College and Raffles American School, investing around RM600 million.

IIB is currently building Reading University and Multimedia University, which would bring total investments in Educity to more than RM700 million, Syed Mohamed said.

He added that majority of the universities are currently owned by IIB and on long-term lease to existing operators.

B&G Capital targets Iskandar

By Sharen Kaur
sharen@nstp.com.my
Published in NST on December 13, 2012

B&G Capital Resources Bhd, which is launching RM8.3 billion worth of new projects over the next five years in Klang Valley, has bought land in Johor for RM73.35 million to expand its market reach.

Executive chairman and managing director Tan Sri Barry Goh said the group is looking to expand its property development business and is targeting Iskandar Malaysia, which is growing its investment numbers.

Investments in Iskandar, an area three times the size of Singapore, have increased in recent months as several projects there reached tipping point.

Prime Minister Datuk Seri Najib Razak yesterday said investments have reached RM105.14 billion since the southern corridor development was launched in 2006.

B&G Capital, which owns over 388ha and has seven ongoing projects worth RM4.2 billion, yesterday inked a lease purchase agreement with Medini Land Sdn Bhd to buy 3.4ha in Zone A, North of Medini in Iskandar.

It plans to undertake a RM1 billion mixed development comprising a gross floor area of 2.2 million square feet, starting next year.

The properties include SOFO (small office flexible office)/studio units, serviced apartments, Grade A office towers, hotel and a boutique retail gallery.

Goh is upbeat on the project because of its close proximity to Legoland Malaysia and the lifestyle Mall of Medini, and strong buying interest from Singaporeans.

"We are confident our expertise will complement the ongoing efforts to transform Johor into an attractive value proposition for local, regional and global investors, and businesses," he said at the signing.

Medini Land is a subsidiary of Iskandar Investment Bhd (IIB), which is the catalytic developer for various projects in Iskandar Malaysia.

For IIB, the land deal with B&G Capital will conclude its target for this year.

It has sealed similar deals with companies like Sunway Bhd, UEM Land Holdings Bhd, China's Qingdao Zhouyuan Investment Holdings, Mah Sing Group Bhd, WCT Bhd and Distinctive Ace Sdn Bhd.

IIB president and chief executive officer Datuk Syed Mohamed Syed Ibrahim said companies like B&G Capital will help enhance the value of real estate landscape in Johor, with multiplier effects on the overall economy.

"The emerging shape and form of Iskandar Malaysia is showing itself as a beautiful masterpiece with extremely high-po-tential investment and growth opportunities.

"B&G Capital will support our endeavour to add more hues and colors in the form of contemporary business and lifestyle solutions to the big picture," he said.

\

Malaysia to make rail decisions by Q1

By Sharen Kaur
sharen@nstp.com.my
Published in NST on December 13, 2012

WORTH RM35B: KL-Singapore bullet train and Gemas-Johor Baru double-tracking projects

THE government will decide by the first quarter of next year when the bullet train and the Gemas-Johor Baru electrified double tracking project (EDTP), with a combined worth of about RM35 billion, will be implemented, sources said.

Malaysia is planning to build a 300km high-speed rail (HSR) line linking Kuala Lumpur and Singapore under a public-private partnership.  The project will cost about RM20 billion to RM25 billion.

The Land Public Transport Commission (SPAD) is conducting a study on the HSR system, which it expects to complete by the end of this month. If feasible, SPAD will call for pre-qualification bids by mid-2013.SPAD chief executive officer Mohd Nur Kamal, when contacted, told Business Times that the study is ongoing.

Its chairman Tan Sri Syed Hamid Syed Jaafar Albar said recently that several states have expressed strong interest for the high-speed rail to pass through their land because of the economic spillover.

Besides Kuala Lumpur and Singapore, Malaysia is also studying the possibility of linking the HSR system to Thailand, Laos, Vietnam and several cities in China.

Business Times reported that Tan Sri Ravindran Menon, who controls Skypark Terminal at the Sultan Abdul Aziz Shah Airport, has teamed up with UEM Group to vie for the HSR project linking Kuala Lumpur and Singapore.

They plan to lay railway lines parallel to the North-South Expressway from Kuala Lumpur, Seremban and Malacca to Johor Baru, before connecting to Singapore.

The standard gauge railway network will be used, where the trains would run at 350 km/h.

Commuters using the trains could travel from Kuala Lumpur to Johor Baru in 80 minutes and to Singapore in 90 minutes, compared to six hours by road, currently.

Transport Minister Datuk Seri Kong Cho Ha recently said several options and alignments are being explored for the Kuala Lumpur-Singapore route.

He said the train could either run non-stop from Kuala Lumpur to Singapore, or start from KL Sentral in Brickfields and have stops at Kuala Lumpur International Airport, Seremban and beyond.

Meanwhile, the Gemas-Johor Baru EDTP will involve around 197km of parallel railway tracks.

Valued at an estimated RM8 billion, it includes building stations, depots, halts, yards and bridges and cover systems such as electrification, signalling and communications.

KTM Bhd on track to profitability

By Sharen Kaur
sharen@nstp.com.my
Published in NST on December 10, 2012

KTM Bhd (KTMB) says the five-year business plan that it presented to the government recently is aimed at turning around the loss-making company into a profitable entity.

KTMB president Datuk Elias Kadir said the business plan includes improvements to the commuter train's delivery time and operational efficiency.

"The government is looking at the plan, which aims to improve the overall performance of KTMB's operations. We want to make our customers happy by providing efficient and reliable services.

"We need to improve the commuter services. We are struggling but are also definitely moving forward. We have great people who have been with KTMB for more than 10 years and they are working tirelessly to improve the company," Elias said at a briefing on the company's plan recently.

KTMB has been recording losses since it was corporatised in 1992 due to high operating costs. Nevertheless, it did make a net profit of RM9 million to RM15 million from 1993 to 1995, before falling into the red in the following years.

According to the Auditor-General's report tabled in Parliament in October, KTMB registered losses amounting to RM118.91 million in 2008 and RM82.81 million in 2007.

The report also stated that from 1994 to 2008, KTMB had sought government help in the form of cash fund injections totalling RM760 million.

Elias said KTMB is currently registering losses of up to RM220 million per annum, including RM60 million from the cargo business, which also happens to be its biggest revenue generator.

"Our biggest challenge is punctuality of the train services. Even if KTMB is making losses, it has to provide good services."

Elias took over as KTMB president in May and since then, the punctuality rate has improved from 17 per cent to 86 per cent.

The improvement was made possible with the cooperation of key KTMB officials and its non-executive staff, helped by the new six-car train sets purchased from China.

Elias said more than three million people use the KTM commuter services each month, adding that he expects the number to increase when the mass rapid transit (MRT) and light rail transit (LRT) line extension projects in the Klang Valley are completed.

"The proposed high-speed rail and the double tracking projects will also contribute to passenger growth as connectivity strengthens. KTMB, going forward, is going to be something else," Elias said.

Besides cargo and KTM commuter services, the company generates income through inter-city railway service and ocean shipping, road haulage and port clearance services.

Nusajaya property prices set to scale new heights

By Sharen Kaur

sharen@nstp.com.my

Published in NST on December 8, 2012

TIPPING POINT: UEM Land says demand for high-end units rising as Phase 1 completed  THE chief of UEM Land Holdings Bhd says that property prices at Nusajaya in Iskandar Malaysia are set to reach new heights next year as Phase 1 of the project has reached a tipping point.

"Property prices are moving upwards because land price is increasing. As we move into Phase 2, we are seeing steep rise in demand for high-end properties," said UEM Land managing director and chief executive officer Datuk Wan Abdullah Wan Ibrahim.

When UEM Land launched the Ujana executive apartments three years ago, it was selling at RM310 per square feet (psf). Impiana resort apartments were launched in September 2011 at a benchmark average price of RM500 psf and Imperia residences, launched around the same period, was selling at RM725 psf.

Wan Abdullah said that foreigners bought about 70 per cent of the Nusajaya properties. Speaking after a media familiarisation tour and briefing on Nusajaya recently, he said foreigners include Singaporeans, Europeans working in Singapore, and Southeast Asia, Japanese, South Korean, India, Chinese and Bangladeshi expatriates.
UEM Land is the master developer of the 9,600ha Nusajaya, which is Malaysia's first economic growth corridor in Johor and one of the flagship zones in Iskandar Malaysia.

It owns 4,141ha land there and is building homes, waterfront properties, offices, hotels, factories, hospitals, campuses and theme parks, making it Malaysia's biggest real estate development.

Phase 1, which started six years ago comprises Kota Iskandar, Educity, Puteri Harbour, Southern Industrial and Logistics clusters, Afiat healthpark, Medini, Legoland Malaysia, Puteri Harbour Family theme parks, and Nusajaya residences.

Among its residential projects, some still ongoing, include East Ledang, Puteri Harbour, Horizon Hills, Ledang Heights, Nusa Idaman and Nusa Bayu.

"We have finally arrived at a tipping point where all the developments in Phase 1 have been completed. We are now working at developing Phase 2," Wan Abdullah said.

Earlier this week, UEM Land, the property development arm of UEM Group Bhd, a diversified outfit controlled by government's investment arm Khazanah Nasional Bhd, unveiled new catalyst projects to spur the region's growth.

It signed several collaborative agreements with companies from Malaysia, Singapore, South Korea and China for deals worth slightly over RM4 billion.

The companies are Iskandar Investments Bhd, Telekom Malaysia Bhd, China Mall Holdings Pte Ltd, Singapore's Fastrack Autosports Pte Ltd and South Korea's Centios and Cisco.

In October, UEM Land had signed an agreement with Singapore's Ascendas Land International Pte Ltd to jointly develop a RM3.76 billion technology park project in Gerbang Nusajaya, a RM18 billion greenfield development sprawling over 1,800ha.

"As the project passes the tipping point, Nusajaya is on course to become the largest fully integrated urban development in Southeast Asia. The second phase of development will drive Nusajaya towards its full potential," Wan Abdullah said
.

Catapulting Iskandar into world-class metropolis

By Sharen Kaur
sharen@nstp.com.my
Published in NST on December 7, 2012

RM100b AND COUNTING: Key players expect a new wave of development next year

THE chief of Iskandar Regional Development Authority (IRDA) said Iskandar Malaysia will develop into a metropolis of international standing.

“To grow into a metropolis, you need the right ingredients and we have it all in Iskandar,” IRDA chief executive Datuk Ismail Ibrahim said after a media briefing here yesterday.

Cumulative investments in Iskandar have breached the RM100 billion mark and key players in the region like IRDA and Iskandar Investment Bhd are expecting a new wave of development next year, led by domestic interests and Singapore.

Iskandar, three times the size of Singapore, was launched in 2006. From then up to September 30 2012, cumulative investments had reached RM99.79 billion where 63 per cent was domestically-driven.
Thirty-seven per cent was foreign investments and from that amount, 42 per cent had come from Europe, 44 per cent from Asia including Japan and South Korea, and 14 per cent from the Middle East.

According to Ismail, there is rising interest from bigger Singapore companies that are looking to invest in Iskandar.

He said the Khazanah Nasional Bhd and Temasek Holdings Pte Ltd partnership to develop parcels of land in Iskandar has spurred interest among Singapore investors.

The two sovereign wealth funds plan to build RM3 billion worth of properties in Iskandar through their partnership called Pulau Indah Ventures Sdn Bhd.

Ismail said the project showed the confidence from Singapore, which would lead to more investments from the country and other global investors.

“Previously, we had small- and medium-sized companies from Singapore that were investing in Iskandar. Also, with improved bilateral trade between Malaysia and Singapore, we anticipate bigger companies to arrive here.

“We recently had Fastrack Autosports Pte Ltd of Singapore which said it wanted to build a RM3.5 billion motorsports city in Gerbang Nusajaya. All these are good for Iskandar,” Ismail said.

The 108ha motorsports city is a joint venture between UEM Land Bhd (a unit of UEM Land Holdings Bhd) and Fastrack, controlled by Singapore billionaire Peter Lim who has also indicated his interest to venture into real estate development in Iskandar.

Last year, Lim had announced a plan to develop a RM200 million healthcare project at Stulang Laut in Johor Baru.

“We expect the proposed high-speed bullet train from Kuala Lumpur and Singapore and other infrastructure developments here to further spur growth in Iskandar as we move forward,” Ismail said.

BRDB's Serai luxury units snapped up

By Sharen Kaur
sharen@nstp.com.my
Published in NST on Decmeber 5, 2-12

BANDAR Raya Developments Bhd says its RM900 million Serai Bukit Bandaraya niche project in Bangsar, Kuala Lumpur, has achieved 54 per cent sales in over three months.

Serai is BRDB's most luxurious development so far comprising 121 private residences situated in two elegant 21-storey towers, nestled in 2.4 hectares of greenery.

The project, which will be completed by the third quarter of 2016, was unveiled yesterday by BRDB chief executive officer Datuk Jagan Sabapathy.

The units have built-ups ranging between 4,025 sq ft and 6,913 sq ft and each are equipped with designer kitchens and bathrooms.

BRDB chief marketing officer K.C. Chong said each unit is priced from RM5.8 million to RM10 million or between RM1,300 per sq ft and RM1,500 per sq ft.

Chong said a bulk of the purchasers were Malaysians who bought to stay with their families.

"There were less than five foreign purchasers and around two to three bought the units as a 'trophy' collection," Chong said yesterday at the unveiling of Serai.

"They know it is a good investment. Serai is located on one of the most precious land in the Bangsar enclave. There will be price escalation," he said.

When BRDB launched One Menerung in 2006, it was priced at RM600 per sq ft. The units are now selling at RM1,000 per sq to RM1,500 per sq ft, he added.

Chong said Serai will be marketed in Singapore soon and it is targeted to be sold out by early 2013.

There are two 14,000 sq ft penthouses worth about RM22 million each and BRDB is close to inking a deal with several property buyers who have expressed their interest to own them, Chong said.

On the 2013 property market outlook, Chong is bullish that demand will hold strong for high-end properties, given the right product and location.

BRDB is launching Senja, a gated community in Seri Kembangan, and Emerald Bay in Puteri Harbour, Johor, over the next six months.

On the privatisation of BRDB, Chong said business will be as usual for the company.

"There is no change of direction. Our brand values and pipeline projects will remain. We will still do what we have been doing," he said.

Brickfields project set to take off

By Sharen Kaur

sharen@nstp.com.my

Published in NST on December 4, 2012

MIXED DEVELOPMENT: MRCB plans RM1b worth of properties on a two-hectare football field MALAYSIAN Resources Corp Bhd (MRCB) expects to start work next year on a new mixed development worth over RM1 billion opposite the Kuala Lumpur Sentral commercial hub in Brickfields.

MRCB head of marketing for property Zamry Ibrahim said the development will comprise residential, retail and office components.

The properties will be built on a two-hectare land which is a football field at Jalan Tun Sambanthan.

MRCB struck a deal last year with the government to undertake public infrastructure projects worth RM128.71 million in Brickfields at its own cost in exchange for the land.

Country Annexe Sdn Bhd (CASB), a special-purpose vehicle in which MRCB holds 70 per cent stake, was set up to develop the projects. DMIA Sdn Bhd owns the rest of CASB.

The projects are Little India, which is to upgrade and beautify Jalan Tun Sambanthan; the three-storey Pines Bazaar office building with carparks and contruction of 212 new government Class 'F' quarters near Jalan Ang Seng to replace the existing ones.

Zamry said MRCB is in the midst of drawing up plans for the development and finalising the land swap deal with DMIA.

"By next year, we will have more concrete plans on the site. The plan now is to get all the necessary approvals by the first half of next year," he said Business Times in an interview.

Zamry said getting approvals is the key as MRCB will then be ready to execute the project in phases.

The commencement of the project, however, would depend on the result of the real estate market during the time, he said.

Separately, Zamry said MRCB will be launching new projects next year in Penang and Kuala Lumpur.

"We have parcels of land in Kuala Lumpur out of the KL Sentral development that we want to develop next year. We will plan high grade and luxury properties in areas where it will be acceptable by the market," he said.

On the funding for new and existing projects, Zamry said that MRCB will look at the debt-equity partnership and its internally generated funds.

Besides the KL Sentral development, MRCB's existing projects are Bandar Seri Iskandar in Perak and Taman Kajang Utama in Selangor.

Eversendai raises stake in Technics

By Sharen Kaur
sharen@nstp.com.my
Published in NST on December 4, 2012

KUALA LUMPUR: Eversendai Corp Bhd, a structural steel turnkey and power-plant contractor, has raised its stake in Singapore-listed Technics Oil & Gas Ltd to 13.63 per cent, in a bid to strengthen its position in the oil and gas (O&G) sector. Just last Friday Eversendai said it bought 11.2 per cent stake in Technics for RM62.1 million using its IPO (initial public offering) proceeds. With the 13.63 per cent stake, Eversendai has invested a total of RM75.2 million in Technics. This is the first acquisition for Eversendai since its listing in 2011 and is part of a bigger plan to acquire different entities to add value and enhance its financial performance. "We will raise our stake progressively if the price is right. Technics is a strong dividend-paying company and its numbers will add value to us. "As time goes buy, we will buy companies which are inter-related to our core business, to enhance profitability," said Eversendai executive chairman and group managing director Datuk AK Nathan. Eversendai bought into Technics to secure stronger footing in the O&G fabrication sector. Nathan told Business Times that he expects Eversendai to venture into the O&G sector in Southeast Asia and the Middle East by the first quarter of next year and earnings to flow in from 2013. Eversendai recorded a net profit of RM83.25 million in its nine-month period ended September 30 2012, on revenues of RM746.91 million. The stock closed one sen lower yesterday at RM1.34. "Eversendai's expertise is towards highly complex steel fabrication works and mechanical erection works for plant construction. The topside for O&G structures consists of structural steel and mechanical works which fit into our business model. "What is lacking is the track record in the sector. By buying into Technics, Eversendai is instantly able to create a track record, and along with our expertise, we will be able to enhance our business opportunities in the sector in time to come," Nathan said. Technics designs and fabricates process modules and equipment, including gas compression packages, which are integrated to form the operating system for production operations and storage applications in both onshore and offshore O&G exploration and production activities. Its net profit recorded a four-year compounded annual growth rate of 51.9 per cent from S$3.8 million to S$20.2 million (RM9.46 million to RM50.30 million), underpinned by the buoyant O&G sector and lucrative contracts secured from oil majors like Keppel Fels, Chevron, Petronas, Emerson, Siemens, PetroChina and Worley Parsons. "If you look at O&G at large, there are phenomenal opportunities, especially in Southeast Asia and the Middle East. There is also huge oil findings in the African continent. "With Eversendai moving into that direction, it will contribute to our RM2 billion revenue target by 2017. With our strong presence in the Middle East, we will be able to grow the business in O&G in a much bigger way. Our infrastructure in the Middle East will complement the growth," Nathan said.

UEM Land inks RM4b Nusajaya deal

By Sharen Kaur

sharen@nstp.com.my

Published in NST on December 4, 2012

 

It is understood that UEM Land signed agreements with the companies from Malaysia, Singapore, South Korea and China for various projects over the past week.

  UEM Land Holdings Bhd, the property development arm of UEM Group Bhd, has inked deals worth about RM4 billion with six companies to develop Phase 2 of Bandar Nusajaya in Johor.

It is understood that UEM Land signed agreements with the companies from Malaysia, Singapore, South Korea and China for various projects over the past week.

The companies are Iskandar Investments Bhd (IIB), Telekom Malaysia Bhd (TM), China Mall Holdings Pte Ltd, Fastrack Pte Ltd of Singapore and South Korea's Centios and Cisco.

People familiar with the matter said there will be four rounds of exchanging of documents between UEM Land and the six companies at the World Islamic Economic Forum today.

UEM Land will exchange documents with China Mall in the first round, followed with IIB and TM. It will next exchange documents with Fastrack and finally with IIB, TM, Centios and Cisco, Business Times was told.

"These deals are important for UEM Land as Phase 1 of Nusajaya, which started six years ago, has achieved its tipping point," a source said.

UEM Land managing director and chief executive officer Datuk Wan Abdullah Wan Ibrahim had said previously that a slew of initiatives would be completed by the end of the year.

The company is the master developer of the 9,600ha Nusajaya, which is Malaysia's first economic growth corridor in Johor and one of the flagship zones in Iskandar Malaysia.

UEM Land owns 4,141ha there and is building homes, waterfront properties, offices, hotels, factories, hospitals, campuses and theme parks there, making it Malaysia's biggest real estate development.

Developments under Phase 1 included Kota Iskandar, which is to become Johor's new administrative centre, and the Legoland Malaysia and Puteri Harbour Family theme parks.

To spearhead developments at Nusajaya, UEM Land had in October signed an agreement with Singapore's Ascendas Land International Pte Ltd to jointly develop a US$1.23 billion (RM3.76 billion) technology park project.

The park will be developed in the new Nusajaya precinct called Gerbang Nusajaya, a RM18 billion greenfield development sprawled over 1,800ha.

UEM Land's net profit rose by 53.4 per cent to RM247.1 million for the nine-month period ended September 30, 2012 on revenues of RM1.24 billion.

The stock closed two sen higher yesterday at RM2.13 yesterday.

Scomi trains to run in Mumbai

By Sharen Kaur
sharen@nstp.com.my
Published in NST on December 3, 2012

SCOMI Engineering Bhd, which is bidding for several monorail projects in India, expects to deliver all the four-car train sets for the Mumbai monorail by June next year.

The group is manufacturing 15 sets of third generation four-car trains for the Mumbai monorail at its plant in Rawang, Selangor. It has so far delivered six sets.

"We have two more sets at the Rawang plant, ready for delivery. Between now and June next year, we hope to deliver the rest," said Scomi group chief operating officer of transport solutions, Kanesan Veluppillai.

Kanesan said the major accomplishment for Scomi for the Mumbai monorail was the successful testing of the four-car trains at 80kph, a feat that was never done before with its existing monorail cars.
"We are proud as these high-speed monorail cars were built and tested in Malaysia, dismantled, shipped to Mumbai and re-assembled. It reflects not only the ability of Scomi as a group but the people involved in the project," he said during a visit to the project site.

Kanesan said another accomplishment for Scomi was the successful integration of the car system, communication, signalling, electrical and civil system interface.

Scomi is not only building the trains but is also involved in designing the entire monorail system according to the client's specifications.

"Seeing the trains run on the tracks here (Mumbai) is a major milestone for us. This is a Malaysian-made product and today, we are recognised globally because of the technology we put behind in implementing the system," Kanesan said.

Scomi won the US$527 million (RM1.6 billion) monorail project in the Mumbai Metropolitan Region with its consortium partner Larsen & Toubro (L&T) Ltd, in November 2008. Scomi has a 49 per cent stake in the consortium with L&T holding the rest.

The Mumbai monorail is the first such project in India, which is planning new lines across the nation.

The project, which comprises Line 1 (8.9km) and Line 2 (10.7km), is being implemented on a build, operate and transfer basis (BOT) for at least 30 years.

Line 1 of the Mumbai monorail from Wadala to Chembur has been completed. It is expected to commence operation in February next year.

Line 2, from Wadala to Jacob Circle, will start operations a year later, Kanesan said.

Scomi's India unit, Urban Transit Pte Ltd, will be in charge of the operations and management of the full completion of the project for a duration of six years.

The group has about 100 personnel, including 15 who are Malaysians, trained in all aspects from operations control, depot and rolling stock maintenance, and OEM (original equipment manufacturer).

KL Sentral to be next hotspot for tourists

By Sharen Kaur
sharen@nstp.com.my
Published in NST on December 3, 2012

KUALA LUMPUR: The Kuala Lumpur Sentral development in Brickfields, here, which is valued at RM15 billion, is set to become a new tourist destination and hotspot for multi-national companies.

The project, developed by Malaysian Resources Corp Bhd (MRCB), has properties with combined gross floor area of nine million square feet under construction, which is more than what has been developed.

Properties under construction include the St Regis and Alof hotels, Ascott Sentral serviced apartment, Nu Sentral mall, Menara CIMB, Menara Shell, Nu Towers, Q Sentral, Sentral Residences and 1 Sentrum.

The properties, which will be completed between end-2012 and 2016, are green and MSC-rated (multimedia super corridor).

"Our strategy has always been to retain majority of the properties and sell some. For the properties that we retain, we have received unsolicited offers. As for the buildings which we have sold, if the owners want to exit, we will help them sell," MRCB property division head of marketing Zamry Ibrahim said in an interview recently.

Spread across 29.16ha area, KL Sentral encompasses the RM1.1 billion world-class transit hub known as Stesen Sentral, several Grade-A office towers and suites, condominiums, two hotels and a 1.2 million sq ft retail mail.

"KL Sentral is not static. It is growing with new components and all the buildings are an improvement in every term. The development has the largest concentration of green buildings in a single area in the Klang Valley," he said.

The blueprint of KL Sentral began with the master plan of a "City-within-a-City" concept designed by the renowned architect Dr Kisho Kurokawa. 

On KL Sentral as a new tourism destination, Zamry said the 1.2 million sq ft Nu Sentral Mall will pave the way to make it a happening place.

Nu Sentral is targeted to open by the fourth quarter of next year. So far, 70 per cent of the floor area has been leased. The anchor tenant is Parkson.

"Currently, around 150,000 passengers pass through the station daily. With the mall, the idea is for people to stop and shop. Nu Sentral is the only mall in Kuala Lumpur that will be linked to the Kuala Lumpur International Airport by rail. With the mall and more hotel offerings, we expect KL Sentral to be the real tourist destination in Kuala Lumpur," he said.

Upbeat developers, upscale projects

By Sharen Kaur

sharen@nstp.com.my

Published in NST on November 27, 2012

MORE developers are launching upscale projects next year as they are upbeat that the real-estate market will perform better despite global financial turbulence and tighter credit here.

Sunway Bhd managing director of property development division Ho Hon Sang quashed talk of a property bubble due to oversupply situation.

"We don't expect a bubble burst as Malaysia's economy is resilient and it will continue to grow. Malaysia has massive projects under the Economic Transformation Programme (ETP) that will keep the economy healthy.

"Employment will also be positive. When people have income, they will invest, especially in real estate and you will never go wrong with that," he told Business Times in an interview.
Sunway, developer of the award-winning Sunway Integrated Resort City in Bandar Sunway, Selangor, will be launching se-veral projects with various offerings next year in the Klang Valley, Penang and Johor, Ho said.

It will launch condominiums and shop offices at Sunway South Quay, courtyard villas and semi-detached homes at Sunway Montana, serviced apartments, office and shop units at Sunway Velocity, and superlink houses, apartments and retail at Sunway Alam Suria, Sunway Eastwood and Sunway Bangi.

In Penang, it will launch three-storey terraced houses at Sunway Cassia and semi-detached houses and townhouses at Sunway Wellesley while in Johor, it plans to offer semi-detached homes and bungalows.

MRCB Land Bhd, the property arm of Malaysian Resources Corp Bhd (MRCB) is launching Kia Peng Residences in Kuala Lumpur, a mixed development in Brickfields and Batu Ferringgi Residences in Penang and targeting the high-income group.

The firm expects to rake in over RM1.5 billion in gross development value.

According to MRCB Land's website, the indicative selling price for Kia Peng Residences, located on Jalan Kia Peng, is RM1,200 per sq ft to RM1,300 psf. Various sizes are offered, ranging from 600 sq ft to 2,600 sq ft.

Batu Ferringgi Residences, with a view of Andaman sea, will feature 17 boutique Villas and 48 units of condominiums.

Eastern & Oriental Bhd has plans to launch RM2.5 billion worth of properties between now and December next year, with half of the targeted sales to come from both its local and overseas ventures.

Bolton Bhd will develop its maiden residential project in Kota Kinabalu, Sabah, comprising 500 units of luxury condomi-niums and 50 villas, worth a combined RM480 million.

Its executive chairman Tan Sri Azman Yahya believes Kota Kinabalu is a good market offering high potential for both developers and investors.

MRCB: Penang Sentral to take off in 2013

By Sharen Kaur
sharen@nstp.com.my
Published in NST on November 26, 2012

MALAYSIAN Resources Corp Bhd (MRCB) says the Penang Sentral project in Butterworth, estimated to be worth over RM3 billion, will begin in 2013 after more than four years of delay.

Penang Sentral, an integrated mixed commercial development was expected to start in 2008 but works got delayed due to land acquisition matters. MRCB was awaiting federal government allocation to fund the public utility project.

It was then reported that Phase 1, comprising the integrated transportation hub with a retail component, worth an estimated RM400 million, would start in December 2010.

MRCB's property division head of marketing Zamry Ibrahim said construction will begin next year and there would be some changes to the plan, like the incorporation of more green elements in the buildings.
"There is a lot of demand for energy efficient buildings from multi-national companies and local players. We will develop what is required by the market," Zamry told Business Times in an interview recently.

The 9.6ha Penang Sentral will feature a transport terminal for ferries, buses, taxis, trains and a projected monorail station.

Zamry said the terminal will be integrated and surrounded with commercial, residential and retail components, similar to MRCB's Kuala Lumpur Sentral integrated commercial hub in Brickfields.

The 28.8ha KL Sentral development, which started over eight years ago, currently comprises a transport hub for rail, buses and taxis, two hotels, a mall, and several residential and commercial towers.

Penang Sentral, which is part of the Northern Corridor Economic Region initiative, will be developed by MRCB and Pelaburan Hartanah Bumiputera Bhd.

The project is poised to be the catalyst of growth to rejuvenate the economy in the northern region.

It has been reported that Penang Sentral is expected to generate economic spill-over effects of over RM8 billion when it is completed in about 10 years.

It is also expected that with the completion of the KTMB electrified double tracking project, train service between Penang Sentral and KL Sentral will be shorten to three hours.

Read more: MRCB: Penang Sentral to take off in 2013 http://www.btimes.com.my/Current_News/BTIMES/articles/MRCB21/Article/#ixzz2DLgrcx00

UEM: Outcome of Turkish bids soon

By Sharen Kaur

sharen@nstp.com.my

Published in NST on November 23, 2012

UEM Group Bhd may soon know the outcome of its bid for the privatisation of bridges and highways in Turkey.

The Privatisation Administration of Turkey (OIB) is expected to decide on the privatisation by year end, the group said.

Group managing director and chief executive officer Datuk Izzaddin Idris said UEM and its joint venture partners are in discussions with OIB on the bid they had submitted.

UEM's partners are Turkish industrial conglomerate KOC Holding and financial services firm Gozde Girisim Sermaesi Yatirim Ortakligi. UEM and KOC Holdings each own 40 per cent stake in the joint venture while Gozde holds the balance.

The three joint venture partners last month submitted a bid for the privatisation of two bridges over the Bosphorus Straits in Istanbul and seven motorways across Turkey.
The roads and bridges, which link Europe and Asia and span a total of 1,975km in cumulative distance, are being privatised in a single package for 25 years.

According to OIB's website, there are two other contenders for the privatisation of these assets. The first group includes Nurol Holdings, MV (Mustafa Vargi) Holdings, Alsim Alarko, Kalyon Insaat and Fernas Insaat.

The second consortium comprises Italy's Autostrade Per I'Italia SPA, Dogus Holdings, Makyol Insaat and Akfen Holdings.

"We can't comment further on the deal until it is concluded. We have been advised by OIB that they want a closure on this by the end of this year," Izzaddin told Business Times after the signing on the corporate adoption of CIMB-Principal's new private retirement schemes on Wednesday.

He said for project financing, the cash flow from the 25-year concession will drive the funding requirements.

UEM, via its engineering and construction division and expressway arm, has ongoing projects worth over RM9 billion.

They include contracts for klia2 and the Mass Rapid Transit packages V8 and S3, Penang Second Bridge, the Cikampek-Palimanan toll road project in Indonesia, and the Brunei national housing project.

Scomi eyes Penang monorail deal

By Sharen Kaur
sharen@nstp.com.my
Published in NST on November 21, 2012

Scomi Engineering Bhd says it is keen to participate in the RM2 billion Penang monorail project and will bid for the job when the government calls for tenders next year.
"We won the bid before and are keen to tender again. We are very well prepared to execute the project," its group chief operating officer of transport solutions Kanesan Veluppillai told Business Times.

The Penang monorail was proposed under the Ninth Malaysia Plan (9MP) and Northern Corridor Economic Region. Tenders were called by the Federal government in November 2007.

In January 2008, government-owned Syarikat Prasarana Negara Bhd issued a letter of intent for the RM1.6 billion job to a consortium comprising Scomi Engineering, Malaysian Resources Corp Bhd and Penang Port Commission.

Other contenders for the job were Melewar Industrial Group Bhd and its partner Putera Capital Bhd, as well as MMC-Metrail Sdn Bhd.

The government, however, shelved the project during the mid-term review of the 9MP, in favour of people-centred developments.

Penang, with a population of about 1.5 million people and registered private vehicles exceeding two million, requires a new mode of transport due to heavy congestion.

It is understood the government has proposed the Penang monorail project to cabinet for approval. The project is expected to cost over RM2 billion due to changes to the alignment and more stations needed.

Under the initial plan, two lines were proposed - Tanjung Tokong to the Penang International Airport via Scotland Road, Jalan Air Itam and the Penang State Mosque; and Paya Terubong to Weld Quay Terminal, via Jalan Air Itam, Jalan Dato' Keramat, and Kompleks Tun Abdul Razak (Komtar).

On government-owned Kuala Lumpur monorail system, Kanesan clarified that Scomi Engineering is keen to participate in the project as an engineering, procurement and construction contractor, supplying the systems and trains to Prasarana.

"We have not looked at taking it private and to enter the concession business. However, we will continue to play a role as a systems supplier and designer in the transportation business," he said.

Business Times reported yesterday that Scomi Engineering wants to take the KL monorail system private and expand the services to Bandar Sunway, Selangor, in a deal that could be worth over RM3 billion.

Scomi tracking KL monorail system

By Sharen Kaur
sharen@nstp.com.my
Published in NST on November 19, 2012

LINE EXTENSION: Company wants to take operations private, expand coverage to Bandar Sunway, Selangor SCOMI Engineering Bhd wants to take the government-owned Kuala Lumpur monorail system private and expand the services to Bandar Sunway, Selangor, in a deal that could be worth over RM3 billion.

The KL Monorail project was built at a cost of RM1.18 billion by KL Infrastructure Group, which had a 40-year concession to collect fares.

The monorail began operations on August 31, 2003, offering services through 11 elevated stations from Titiwangsa Station in Jalan Tun Razak to KL Sentral in Brickfields.

Government-owned Syarikat Prasarana Negara Bhd stepped in and took over the assets and operations of the monorail system in December 2007 after KL Infrastructure suffered financial constraints.
The system is now operated by Prasarana's wholly-owned unit, KL StarRail Sdn Bhd, and uses 12 two-car trains built by Scomi Rail Bhd, a subsidiary of Scomi Engineering.

Scomi Engineering president Suhaimi Yaacob said the company has prepared two proposals involving the KL monorail system - extending the line to Bandar Sunway on a build, operate and transfer mode and privatising the project.

"We hope the government will reinstate the KL monorail extension project which, we believe, may only be realised in 2014. If given the opportunity, we would like to take it private and run the operation, including the line extension," Suhaimi told Business Times in a recent interview.

Suhaimi said the 22km line extension will start from KL Sentral, passing through Mid Valley City and Old Klang Road before ending at Bandar Sunway.

"The existing line is already highly stressed, which is why the government is expanding from two-car trains to four-car trains, and extending the line beyond Brickfields," he said.

"Monorail is the only rail system that is able to navigate through limited space, thus alleviating the need to acquire properties and other conventional hurdles to make way for it," he said.

As the current trains are running on full capacity, Prasarana has awarded a contract to Scomi to build 12 sets of new four-car-trains for RM494 million.

Suhaimi said the new trains will be supplied to Prasarana in batches between next month and the third quarter of next year.

Club Med plans to expand into Sabah, Sarawak

By Sharen Kaur
sharen@nstp.com.my
Published in NST on November 19, 2012
PETALING JAYA: France's Club Mediterranee, which operates the Club Med resort chain worldwide, is assessing opportunities to expand into Sabah and Sarawak.

The Paris-listed group, which has 80 properties in its portfolio, has owned and operated Club Med Cherating in Kuantan, Pahang, since 1979.

Malaysia was the group's first stop in Asia Pacific, as part of its global expansion plan.

Sprawled within an 80ha enclave, Club Med Cherating is also the largest resort under the "Club Med" banner in Asia Pacific, by land size.

Its country sales and marketing manager for Malaysia, Steven Tan, said the group is mulling setting up a replica of Club Med Cherating in Sabah.

"We were looking at opportunities in Sabah earlier and we are still on the look out in Malaysia. It is always in our discussion to expand in Malaysia. Tourism is great here. We love to have more resorts in our portfolio as we move along," Tan told Business Times in an interview recently.

Club Med Cherating has 297 traditionally-designed Malay kampung-style rooms in 15 three-storey buildings built on stilts. The structures are all made of teak.

Each room is selling from RM620 per person a night, which includes accommodation, three meals, snacking and free flow of alcohol and non-alcohol beverages and entertainment.

According to Tan, more than RM100 million has been invested in the development of Club Med Cherating since its opening.

Tan said despite the global financial turmoil, the total business registered by the Malaysian office has been in the region of around RM40 million to RM45 million per annum.

He said Club Med Cherating welomes around 35,000-40,000 visitors a year, made up mostly of locals.

"We have a growth about five per cent annually in number of new visitors to the resort in the past few years. Our  global strategy of being upscale and premium has led to the increase, not just in Malaysia, but globally," Tan said.

The resort has about 25,000 active members from Malaysia. One can become a member (coupled with insurance coverage) for a fee of RM95 for the first year and RM65 for year-on-year renewal.

"Revenue has been increasing steadily over the past few years. Last year was a challenge because of the global economic crisis. Prices of goods and services had eroded. It is a challenge faced by any business."But things have improved now. We see more families and honeymooners staying at our place."

In 2004, when there was turmoil in the global market, the resort went through a RM30 million overhaul, which has helped to increase its occupancy rates from 50 per cent to between 60 per cent and 65 per cent.

-ends-

Club Med to open 5 more resorts in Asia Pacific

By Sharen Kaur
sharen@nstp.com.my
Published in NST on November 19, 2012

PETALING JAYA: French-based Club Mediterranee (Club Med), which operates the Club Med resort chain worldwide, is opening five new resorts in Asia Pacific within the next five years to increase its presence in the region.

With vibrant economic growth seen in emerging markets, global companies from mature markets continue to expand across the Asia-Pacific region, including in Malaysia.

Asia Pacific is currently the fastest growth region for the Paris-listed travel and leisure group.

It is understood that the group will invest more than RM200 million to open the five resorts.

Set up in 1950 in France, Club Med offers all-inclusive vacations in 80 resorts in 40 countries, from beach to ski holidays for families, couples and the corporate sector. The group is the world leader for ski resorts.

According to Steven Tan, its sales and marketing manager for Malaysia, Club Med, which rakes in around 1.5 billion euro in revenue a year, is bullish on the outlook for Asia Pacific.

To be more concentrated, Club Med has split its business in the region into two units - Greater China, which covers China, Hong Kong and Taiwan, and East and South Asia Pacific comprising Southeast Asia, Japan, Australia, New Zealand and Korea.

Tan said Club Med, which is mulling a second resort in Malaysia, plans to open new resorts in China and Maldives between now and 2015.

In May, Club Med will open its second Chinese resort at Guilin, a 40-hectare site framed by misty jagged mountains that southern China is famous for.

"There are many more on our radar. Beyond five years, we are looking at Southeast Asia, targeting Indonesia, Vietnam and Cambodia," Tan told Business Times in an interview.

Since 2004, Club Med has sought to move upscale and set up resorts in developing countries.

In June, Club Med reported a 70 per cent increase in its first-half net profit. It gained 17 million euro from November through April, a threefold increase over the same period last year.

Its revenue increased 4.6 per cent to 798 million euro.  The group reported a 10 per cent increase in Asian countries like China, Singapore and South Korea.

However, it remained prudent for the full year, due to uncertain global economic prospects, expecting its profit margin to be in the range of nine per cent.
-ENDS-

Glomac plans more Grade A offices

By Sharen Kaur
sharen@nstp.com.my
Published in NST on November 16, 2012

KUALA LUMPUR: Glomac Bhd, a property developer and investment group, aims to build more Grade A office towers in the Klang Valley as part of its expansion, its chief says.

Group managing director and chief executive officer Datuk FD Iskandar Mansor said there is a trend now where multinational companies are moving out of the central business district.

"We anticipate more demand for Grade A office towers. As a developer, if there is demand, we will definitely put up more towers," Iskandar said recently.

Glomac caused a stir in the market in the late 2007 when it sold an A-Grade office tower opposite the Petronas Twin Towers, which was recorded as the highest priced commercial transaction per sq ft in town.

The 40-storey Glomac Tower was sold en bloc to Kuwait Finance House and a private company for a record price of RM1,120 per sq ft or RM577 million. This was the first major en bloc deal for Glomac.

The tower was built by Glomac Al Batha Sdn Bhd on a 0.5ha property, which it acquired for about RM1,000 per sq ft from the Tan family of the Continental Hotel group.

Glomac Al Batha is a 51:49 joint-venture firm between Glomac and Al Batha Group, respectively, one of the largest private business concerns in the United Arab Emirates.

Glomac is currently developing Glomac Damansara, which comprises four high-rise towers - two each for residential and commercial.

While the group has retained one of the office towers for its own use, the second tower with 25 floors was sold to Lembaga Tabung Haji for RM170.73 million in 2009.

Glomac had said that the en-bloc sale to financially strong institutions such as Tabung Haji was part of its strategy to reduce sales risks for new projects.

Sales for residential towers have reached 85 per cent to 90 per cent.

Since its set-up, Glomac has completed properties worth over RM4 billion in total sales value.

From managing just over three projects a year, Glomac now has over 10 ongoing projects including well- received townships Saujana Utama in Sungai Buloh, Saujana Rawang in Rawang and various residential and commercial developments focused in Greater Kuala Lumpur.

Iskandar said Glomac is mulling to build office towers at some of the on-going projects in Greater Kuala Lumpur.

Moving forward, Glomac is entering into a new phase of growth as it is in the midst of launching more than RM1 billion worth of properties per year.

Scomi eyes RM5b Chennai monorail project

By Sharen Kaur
sharen@nstp.com.my
Published in NST on November 16, 2012

MID-2013 BID: Company in midst of preparing tender documents

SCOMI Engineering Bhd expects to submit its bid for a RM5 billion monorail project in Chennai, the capital city of Tamil Nadu by mid-2013.

"We are preparing the tender documents for the project. We hope to submit the bid by March or June," said its president (rail) Suhaimi Yaacob.

If the group gets the job, it would be its second major monorail project in India.

In November 2008, Scomi and consortium partner Larsen & Toubro secured a RM1.85 billion monorail project in the financial district of Mumbai.

Scomi's portion of the job is worth RM785 million. Phase 1 of the project is expected to be completed by mid-2013, and Phase 2, six months later.

In Bangalore, Scomi has a joint bidding agreement with Geodesic Techniques Pvt Ltd to bid for a 59km monorail line.

Suhaimi told Business Times during a visit to the group's monorail plant in Rawang Wednesday that it is also planning to bid for two monorail projects that are coming up in Maharashtra in Mumbai.

Besides Chennai and Mumbai, Scomi is eyeing monorail projects in other states in India like Delhi, he said.

In Delhi alone, the Union Urban Development Ministry has asked the government to build 13 to 14 separate monorail lines across the capital city.

"The market for monorail development in India is estimated to be worth US$15 billion (RM45.9 billion) over the next five years. We hope to get a large share of the pie," Suhaimi said.

Scomi is currently one of four integrated suppliers of monorail systems in the world. The others are Canada's Bombardier Inc, Japan's Hitachi and new player, Chongqing of China.

Following the award of the Mumbai monorail project, Scomi has became a well-recognised brand in India and in other parts of the world.

The group's monorail system is high in demand worldwide. The system enables smooth ride quality, energy efficiency, lower operating costs, environmentally friendly transportation needs and futuristic designs.

In 2011, Scomi won a monorail project each in Sao Paulo and Manaus, Brazil, worth a combined RM5.2 billion. The two joint-venture projects are expected to be completed by end-2014 and mid-2015.

Scomi's operation in India also serves Bangladesh and Sri Lanka whose governments have master plans for monorail projects, worth several billions of ringgit.