Country Heights mulls Chinese healthcare hub

By Sharen Kaur
sharen@nstp.com.my
Published in NST on June 25, 2012

Country Heights founder says Malaysia needs a good hospital for those who seek treatment using Chinese medicine and methods from acupuncture to cupping.

KUALA LUMPUR: Country Heights Holdings Bhd (CHHB) is mulling setting up a hub in Kuala Lumpur or Sarawak to house a hospital for traditional Chinese medicine, a university and
college.

CHHB founder Tan Sri Lee Kim Yew said Malaysia needs a good 300-bed hospital so the public can seek treatment using Chinese medicines and methods from acupuncture to cupping.

“I believe this concept will work here. As it is, a lot of people are going to China for this purpose. If we can do that here, it will promote health tourism,” Lee said in an interview with Business Times recently.

“This is a knowledge-based business which is why it’s going a bit slow. I plan to build the hardware first. Once I have all the infrastructure and resources in place, I will proceed with the next step to seek approval to build the hub,” he said.

In its efforts to expand and diversify its health business, CHHB has set up a traditional Chinese and healthcare centre at Golden Horses Health Sanctuary, located at the Mines Wellness City (MWC).

MWC, formerly, Mines Resort City, is an integrated health and wellness resort city in Sri Kembangan, here.

“In the last few years, people have been more willing to spend money on their health. They are paying more attention to food, exercise and wellness. This is why from property development, I diversified into health.

“I have told my successor, which is my daughter, to expand in all these areas. I am not an industrialist. I just believe everything can create an economy, including organic planting,” Lee said.

Lee also wants CHHB to set up 10 wellness centres in Southeast Asia and Malaysia to promote health.

“Our philosophy is more on partnerships. We will look for partners with strong financing, and who can understand and accept our business model,” he said.

Final value of MRT Line to be known by year-end

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

MASS Rapid Transit Corp Sdn Bhd (MRT Corp) said the final value of the 51km Sg Buloh-Kajang (SBK) MRT Line will be determined by the end of this year, when all the 85 contracts are awarded.

So far, MRT Corp has awarded 31 contracts valued at RM13.83 billion, said its director for strategic communications and public relations Amir Mahmood Razak.

Amir said there are 23 contracts in the process of evaluation, and they will be awarded soon.

Among them include the RM1.6 billion contract to supply trains for the Sg Buloh-Kajang line, which will be awarded by end-July, Amir said.

MRT Corp received bids from Changchun Railways Vehicle Co Ltd, Siemens SMH Rail Consortium and CSR Zhuzhou Electric Locomotive Co Ltd to supply the trains.

Three other groups who said they would bid but pulled out from the tender were Kawasaki Heavy Industries Rolling Stock Co, Bombardier Transportation and Hyundai Rotem Co.

"We are disappointed that only three groups have bid for the rolling stocks. We are evaluating the proposals and will award the job next month," Amir said.

Amir is confident that phase one of the MRT line 1 from Sg Buloh to Semantan will be operational by December 2016, and phase two, from Kajang to Taman Maluri, by June 2017.

He was speaking yesterday at a briefing by Sunway Construction Sdn Bhd on its RM1.17 billion contract (package V4) for the MRT line.

Sunway Construction was awarded package V4 in May this year, to build a 6.6km viaduct and other associated works between Section 17 in Petaling Jaya and the Semantan Portal, where the alignment will continue underground.

Three stations will sit along this segment of the line, namely Section 16, Pusat Bandar Damansara and Semantan, with a provisional station at Bukit Kiara.

Kwan Foh-Kwai, the managing director for Sunway's construction division said works on package V4 commenced on June 18, and will be completed by December 2015.

He expects the contract to start contributing to the company's revenue and net profit from this year onwards.

George Kent-led group tipped to win Ampang LRT job

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

KUALA LUMPUR: A consortium led by George Kent Bhd is now tipped to win the systems contract worth RM960 million for the Ampang light rail transit (LRT) line extension project.

Sources with knowledge on the matter said the winning bidder for the job is expected to be announced by the government within the next few days.

Other members of the George Kent consortium include China Railway Construction Corp and Tewet GmbH, a project management consultant firm.

George Kent was established in 1936 and is a leader in mechanical and electrical engineering. For fiscal 2011, George Kent posted a pre-tax profit of RM26.2 million on revenue of RM152.3 million.

Tenders for the systems contract for the Ampang line extension closed on June 16 2011. Eight groups had made the bids.

Business Times first reported that George Kent may win the job in July last year.

It was speculated early this year that the Posco-Sojitz-Daewoo International-Thales group was also one of front-runners to win the contract.

However, the Invensys-Balfour Beatty Rail-Ingress consortium later emerged as the odds-on favourite to win the systems contract. The contract was supposed to be awarded last month.

But Syarikat Prasarana Negara Bhd issued letters to the bidders, asking them to extend the validity of their bid to July 27, to give it more time to evaluate the proposals.

The other bidders are Colas-CMC Engineering-Thales, Samsung-LG-Thales, SNC Lavalin-WW Engineering-Bombardier, Siemens-Scomi Engineering and Ansaldo-Emrail-Leighton.

“After a detailed study on all the proposals, a decision has been made on the best candidate, said a source with knowledge of the matter.

Prasarana, a wholly-owned government company established by the Finance Ministry, had budgeted RM1.5 billion for the system works.

The budgeting was done by UK consultant Halcrow/HSSI.

MRCB to develop prime Bangsar land?

By Sharen Kaur
sharen@nstp.com.my
Published in NST on June 23, 2012

Malaysian Resources Corp Bhd has emerged as the frontrunner to develop a prime 8.09-ha site on Jalan Bangsar in Kuala Lumpur where the Unilever headquarters and factory once sat.

Sources said MRCB is close to inking a deal with landowner Pelaburan Hartanah Bhd (PHB).

They added that MRCB plans to build several office towers, a serviced apartment-cum-hotel, a retail mall and boutique outlets on the plot.

The project is expected to rake in more than RM5 billion in gross development value (GDV), they said.

“It will be an extension of the KL Sentral development in Brickfields, and may be linked to the Bangsar LRT station,” said a source.

MRCB is the developer of KL Sentral, an integrated transport hub with GDV of over RM10 billion. The project is slated to complete in 2016.

The sources said MRCB is fine-tuning its masterplan for the project and expects to submit to the relevant authorities soon.

It is still unclear if MRCB will acquire the land outright or develop it in a joint venture with PHB.

“PHB may give the land to MRCB in exchange for properties in the development and cash. It may also develop the land jointly with MRCB,” said the source.

Business Times had reported early this month that PHB was studying a few proposals it had received to develop the area.

PHB had pre-qualified more than five property developers last year, to submit their proposed masterplan for the land development, before shortlisting the list to three.

The three are MRCB, SP Setia Bhd and Mah Sing Group Bhd. 

Formerly a well-known landmark housing Lever Brothers’ soap and margarine factory, the land has been left unoccupied since Unilever Malaysia moved out in 2003.

The land used to belong to Railway Asset Corp (RAC) but came under the ownership of PHB in early 2011. PHB bought the land from RAC at about RM150 per sq ft two years ago.

PHB is a subsidiary of Yayasan Amanah Hartanah Bumiputera, created under Budget 2006 with an initial capital of RM2 billion, to promote Bumiputera ownership of prime real estate.

According to Zerin Properties chief executive officer Previndran Singhe, the land, if it has been converted to commercial use, could fetch about RM600 psf, given its frontage to the busy Jalan Bangsar.

"If it has not been converted to commercial use, then I reckon it could be worth RM400 psf to RM450 psf," he told Business Times.

As a perspective, SP Setia had paid under RM400 per sq ft for a 10.1ha land on the former Kampung Haji Abdullah Hukum site along Jalan Bangsar, not too far from the former Unilever headquarters.

It is developing KL Eco City, with a projected GDV of RM6 billion on the site.

The land is said to be currently worth around RM600 per sq ft, given that several phases of the project have been launched.

Eversendai plans to acquire firms

By Sharen Kaur

sharen@nstp.com.my

Published in NST on June 19, 2012

MEETING REVENUE TARGET: Group expects to announce two or three deals in next few months

EVERSENDAI Corp Bhd, a specialist structural steel and power plant contractor, is buying several companies related to its core business to help achieve its RM2 billion revenue target by 2016.

The group, which has RM1.9 billion worth of ongoing contracts in hand, is also bidding for more jobs in Southeast Asia, the Middle East and India.

"To achieve the target, we have to acquire a few companies and we are mid way now. I foresee in the next few months, we will announce two or three acquisitions," said Eversendai group managing director Datuk AK Nathan.

Nathan said the companies, both local and foreign, are involved in oil and gas and manufacturing and that the businesses will complement Eversendai's own. He said the companies will add value to the group and enhance its financial performance.

Nathan is also unfazed by the eurozone crisis and is maintaining his target to achieve double-digit growth in revenue and net profit.

"Our businesses and performance are not affected by the situation in Europe as our focus is in the Middle East, India and Malaysia. We will continue to be prudent in what we invest in," he said yesterday after the group's shareholders meeting.

For fiscal 2011, Eversendai posted a pre-tax profit of RM136 million on RM1.03 billion revenue.

In the first quarter ended March 31 2012, it recorded a pre-tax profit of RM31.25 million on RM249 million revenue.

To bring the company forward, Nathan said Eversendai is looking at organic growth in its existing markets, as well as projects in new areas like Singapore, Indonesia and Vietnam.

"There are few projects in the pipeline. Even, in Malaysia, there are a lot of jobs coming up under the Economic Transformation Programme. We are bullish Eversendai will perform better than last year," he said.

Year-to-date, Eversendai has won contracts worth about RM810 million. It anticipated to clinch the RM850 million Abu Dhabi International Airport (ADIA) structural steel contract and two high-value structural steel jobs, worth RM700 million, in Azerbaijan this year. 

Maybank Investment Bank Research is maintaining its "buy" call on Eversendai, with an unchanged target price of RM2.17 (based on 12 times 2012 price-earnings ratio).

The research unit believes that Eversendai is in a strong position to secure the ADIA job as it is the only structural steel contractor which submitted its bid with a bond and has a strong track record.

If Eversendai gets the ADIA job, its outstanding order book will increase from its already historical high of RM1.9 billion to RM2.8 billion.

RM160b to lift rail transport

By Sharen Kaur
sharen@nstp.com.my
Published in NST on June 20, 2012

Malaysia's railway industry will pump up to RM160 billion in total investment between now and 2020 to develop the rail infrastructure, said the Land Public Transport Commission (SPAD) yesterday.
“The government has invested more than RM50 billion in rail transport since the 1990s. Investment for future rail projects is estimated to reach RM160 billion by 2020,” said SPAD chairman Tan Sri Syed Hamid Albar.

The industry generated more than RM1.7 billion in revenue and employed some 9,500 people in 2010, with that numbers set to increase, he told stakeholders yesterday at the Future Rail 2030: National Rail Industry Development Roadmap briefing.

The government’s aspiration to improve land public transport is reflected in the National Key Result Area and National Key Economic Areas.

SPAD is currently undertaking a series of studies under the Urban Rail Development Plan. Among them are the KL Monorail extension plan from Jalan Tun Sambanthan in Brickfields to Happy Garden in Old Klang Road; MRT 2 circle line from Sentul Timur to Ampang; MRT 3 north-south line from Selayang to Putrajaya;
and the KTMB freight relieved line from Subang to Port Klang.

SPAD has also started a feasibility study on a high-speed rail project linking Kuala Lumpur and Singapore. Syed Hamid said the study was expected to be completed by year-end.

According to the Malaysian Industry-Government Group for High Technology (MIGHT) website, there are several issues and challenges hampering the development of the local rail industry, including policy and regulation, economy, human capital, technology, lack of investment and environment.

The National Rail Industry Development Roadmap will map out details like reducing foreign dependency, improving greener transportation, capability and capacity, creating new business opportunities for the locals and capturing a bigger share of the US$218 billion (RM690 billion) global rail market.

The initiative for the roadmap started as a foresight programme by MIGHT early last year.

"Today is basically the last engagement with the stakeholders. We hope to finalise the roadmap by August," said MIGHT director of myForesight, Rushdi Abdul Rahim.

The stakeholders are SPAD, MIGHT, Keretapi Tanah Melayu Bhd, Syarikat Prasarana Negara Bhd and 60 local railway experts like Scomi Group, Skypark Line, CMC Engineering, SMH Rail and Global Rail.

Bombardier, Thales and Colas also attended the briefing.

Rushdi said the roadmap would take into account the expected RM160 billion investment but the focus would be on developing local expertise, supporting small- and medium-sized enterprises and creating jobs.

"There will be a RM50 billion expenditure on the MY Rapid Transit project and as we do not want to rely on outside expertise, we must develop local talent," he said.

Rushdi also said the high-speed rail project was not part of the RM160 billion total investment.

Mulpha Land: Boutique projects on drawing board

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

PETALING JAYA: Mulpha Land Bhd, which has four on-going projects with gross development value (GDV) of RM800 million, plans to add more developments in the short term.

Executive director Ghazie Yeoh Abdullah said Mulpha Land will be busy for the next five years, launching boutique developments and expanding into new horizons.

"We have to look at where we want to be in the next three years, and five years. We are opening up into different sectors, and moving into high-growth areas," Ghazie told Business Times in an interview.

Ghazie said part of the bigger plan for the company is to acquire land in Kuala Lumpur, Selangor and in the northern states, as well as undertake property development projects on privatisation basis and joint ventures.

He added that the key is to buy sizeable land that can generate huge GDV and good returns.

"We want to grow our GDV to previous records. We plan to stick to bite-size products as the market seem to be acquiring that. We are expanding our market reach to foreign property buyers," Ghazie said.

He added that Mulpha Land's vision is in line with its parent, Mulpha International Bhd, which is to grow to new heights. 

Mulpha International, a diversified conglomerate with shareholder's fund exceeding RM2.9 billion, owns 70.54 per cent of Mulpha Land.

Mulpha Land's existing projects are Bangsar Enclave in Bangsar and Raintree Residence in Ampang, Kuala Lumpur, Bukit Punchor in Penang, and Desa Aman in Kulim, Kedah.

The company has in its pocket, undeveloped land of up to 250ha in the central and northern regions, which will be developed over the next five to eight years, Ghazie said.

Ghazie said all existing and new projects by the company will be Green Building Index rated.

He said Mulpha Land is gearing to introduce its next exclusive project, six luxury bungalows in Bukit Tunku, Kuala Lumpur, targeting high networth locals and Arabs.

Ghazie was appointed to the board of Mulpha Land on May 22 2012, to spearhead business development for the company, including land purchase and new product design.

He has been offered by Mulpha International to exercise the option to acquire 30 million ordinary shares of RM0.10 each in Mulpha Land at a price of RM1.16 per share. 

If successful, this means Ghazie will hold 32 per cent of Mulpha Land while Mulpha International will have 38 per cent stake remaining in the property development company.

Mulpha International will receive cash of RM34.8 million if all the call options are exercised.

Nadayu eyes twofold rise in sales

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

NADAYU Properties Bhd aims to increase property sales by twofold to RM400 million this year, led by its latest launch in Bandar Sunway, Selangor.

The developer will be launching Nadayu 28 in August. The project comprises high-rise residences with 10 units of shoplots, worth a combined RM440 million.

"We have enjoyed more than 50 per cent sales before the release. We are certain that once the sales gallery is up in July, there will be more coming in," Nadayu chairman Hamidon Abdullah said.

Hamidon said yesterday after Nadayu's shareholders meeting that the company is expecting to do better in the current fiscal year ending December 31 2012.

Nadayu has RM280 million in unbilled sales, which will be recognised throughout this year, he said.

It also has on-going projects worth about RM1.7 billion, being launched in phases.

For fiscal 2011, Nadayu posted a pre-tax profit of RM26.7 million on revenues of RM175.8 million.

"Today is not just about selling the product and getting purchasers on the table. You have to cross another hurdle which is end financing. This has made the market more difficult," Hamidon said.

"The real truth in a company is what you have done before. It is your track record that will give you the edge. Our priority is a satisfied customer, so we get recurring purchasers," he added.

Hamidon said the company is looking to increase its landbank, from its current size of 362ha.

The current land size, mainly in the Klang Valley and Penang, is expected to generate a gross development value exceeding RM5 billion over the next 10 years.

"We will look at all opportunities to grow the business and expand to new territories," he said.

Mulpha Land targets record sales this year

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

PETALING JAYA: Boutique developer Mulpha Land Bhd is targeting record sales of RM60 million to RM70 million in the current year, led by its Bangsar Enclave project in Kuala Lumpur.

Bangsar Enclave comprises seven units of three-storey bungalows in a gated and guarded community.

The project, with a green architecture concept and located at Jalan Medang Tanduk in Bangsar, will be completed in four months.

Mulpha Land executive director, Ghazie Yeoh Abdullah said each unit will be selling at RM12 million and above.

The company is positive on the take-up as it has a ready market.

He said Mulpha Land has a strong following from the Middle East buyers who are looking for homes here, to buy in bulk or individual units.

"The reach to the Middle East has been in our past organisation where we have constructed several projects in Saudi Arabia. We have a strong network there," Ghazie told Business Times yesterday after the company's shareholders meeting.

Mulpha Land is the property arm of Mulpha International Bhd, a diversified group. 

The company's other ongoing projects are Bukit Punchor in Penang, Desa Aman in Kulim, Kedah, and Raintree Residence in Ampang.

The projects, including Bangsar Enclave, have a combined gross development value of about RM800 million, Ghazie said.

He said Raintree Residence, located opposite the Raintree Club at Jalan Wickham in the diplomatic enclave of Ampang Hilir and U-Thant, comprises 12 units and they will be retained for recurring income.

"Our current focus is to complete all current projects and realise our profitability. Long-term plans include focusing on projects in Kuala Lumpur, Selangor and in the northern states," he said.

For fiscal 2011, Mulpha Land posted a pre-tax profit of RM1.62 million on revenues of RM17.85 million.

In the first quarter of 2012, it recorded a pre-tax loss of RM601,000 on revenues of RM637,000.

The stock fell 2.5 sen yesterday, to close at 57.5 sen.

Mulpha Land deputy chief executive officer for property division Ronn Yong said he is positive on the outlook for the luxury segment of the property market.

"With the votality of the euro crises, a lot of people are hegding on properties. The rich are not affected and that is driving sales of our high-end properties," Yong said.

Fajarbaru eyes MRT deals

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


FAJARBARU Builder Group Bhd is understood to have submitted bids to build stations for the RM40 billion MyRapid Transit (MRT) project.

Business Times (BT) understands that Fajarbaru is eyeing contracts to build MRT stations under packages S4 and S5, which closed on May 28 and June 11, respectively.

The combined value of the two packages to build the seven stations is about RM650 million.

Fajarbaru executive director Teo Sock Cheng confirmed that it had submitted the bids to MRT Corp, but declined to reveal the value.

Other companies which had also submitted proposals are WCT Bhd, Sunway Group, Muhibbah Engineering (M) Bhd and IJM Corp Bhd.

Their bids range between RM550 million and RM700 million, BT was told.

"We aim to be a big player in the railway development business if given the opportunity, and will continue to bid for jobs under the MRT project," Teo said.

He added that the company is also eyeing potential contracts for the RM8 billion Gemas-Johor Baru double-tracking job.

"We are eyeing earth and infrastructure works, similar to what we are doing right now for the Seremban-Gemas electrified double-tracking project (EDTP)," said Teo.

Fajarbaru, which has RM1 billion worth of construction jobs in hand, is a new kid on the block as far as railway development works are concerned. The company ventured into the sector only in 2008.

It secured its first rail contract worth RM316 million with India's Ircon International in 2008 to help build the Seremban-Gemas EDTP between Tampin and Batang Melaka.

Since then, Fajarbaru has developed a reputation as the contractor of choice for the RM7 billion light rail transit (LRT) line extension project.

In the last one year, the company won several contracts worth a combined RM450 million from Syarikat Prasarana Negara Bhd to build two stations for the Ampang line extension, three stations for the Kelana Jaya line extension, and a depot in Putra Heights, Selangor.

"We were nominated by Prasarana to the Bina Puri Holdings Bhd-TIM Sekata joint-venture, Trans Resources Corp Sdn Bhd and Malaysian Resources Corp Bhd, respectively," Teo said.

The three companies are the core contractors that are undertaking some RM2.914 billion worth of rail related works for Prasarana's LRT project.

RHB Research recently noted that for the year ending June 2012, Fajarbaru had secured five key contracts, boosting its year-to-date new contracts to RM668 million from RM368 million and outstanding order book by 46 per cent to RM925 million from RM625 million.

Analysts said that based on Fajarbaru's recent success, it must be seen as a favourite to bag the RM650 million job for Package S4 and S5.

For the year ended June 30 2011, Fajarbaru registered a net profit of RM13.6 million.

Kenanga Research expects its profit to rise to RM15.8 million this year and RM27.1 million by 2013.

The research house has an "outperform" call on the stock with a RM1.27 target price.

The stock closed unchanged yesterday at RM1.08.

Elements model for Pudu project?

By Sharen Kaur

sharen@nstp.com.my

Published in NST on June 12, 2012

HONG KONG FLAVOUR: UDA Holdings keen on Everbright International’s mall proposal as it ensures long-term sustainability.

UDA Holdings may redevelop Pudu Jail into an integrated transport hub, a la Elements of Hong Kong, to attract domestic and foreign direct investments.

The plan could generate more than RM8 billion in gross development value, said UDA chairman Datuk Nur Jazlan Mohamed.

Nur Jazlan said the company had hired consultants to study proposals from the Ministry of Finance (MOF) and Everbright International Construction Engineering Corp (EICEC), a China government-linked company.

“We will compare the two proposals to see which is more superior. The study, which will take another six to eight months, will be presented to the government and the final decision is theirs,” Nur Jazlan told Business Times in an
interview recently.

UDA is in favour of EICEC’s proposal, which moves along the lines of Elements, a large shopping mall with an ice rink and a 1,600-seat cinema that is located directly above the Kowloon
MTR station.

This is also despite the MOF having rejected the Chinese developer’s proposal in favour of splitting the 8ha plot into three parcels, mainly to be given to Bumiputera developers.

“We prefer the proposal by EICEC as we get to control the land and it will give us RM2.4 billion worth of investment properties, which in turn will provide us with long-term recurring income,” Nur Jazlan said.

“EICEC also said it would hand over the properties to us four to five years after construction commences. The key here is money, which we need for long-term sustainability,” he added.

Nur Jazlan reiterated that UDA’s survival and the fate of its 1,400 employees depended on the success of the Pudu Jail redevelopment project.

He said UDA had no choice but to be competitive as it was no longer receiving any direct assistance from the government.

UDA, with assets worth more than RM2 billion, is RM900 million in debt.

“If we find investors with risk appetite to take on the development, we will consider them. The project has big risk and we need more than RM1 billion up front to develop the infrastructure and build the properties.

“We want the development to be sustainable and, therefore, we need investors with deep pockets,” he said.

The Pudu Jail redevelopment is part of the Economic Transformation Programme (ETP) under the New Economic Model to turn the Klang Valley into the Greater Kuala Lumpur economic district and Malaysia into a highincome nation by 2020.

UDA may sell BB Plaza

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

UDA Holdings Bhd said yesterday it may ask for RM474 million from MRT Corp Bhd for its Bukit Bintang Plaza (BB Plaza) were it to let go of the property for the construction of an underground MY Rapid Transit (MRT) station.

Chairman Datuk Nur Jazlan Mohamed said the prime property could cost around RM374 million, with a further RM100 million required to compensate BB Plaza retailers who had to leave before their lease expired.

Speaking to Business Times after launching UDA Holdings’ RM13 million IT transformation programme yesterday, Nur Jazlan said construction of the underground station would also affect Bumiputera businesses as at least 60 per cent of the 150-odd retailers at BB plaza, which is owned by UDA and built in the 1970s, are Bumiputeras.

MRT Corp plans to take over the land fronting BB Plaza and the adjacent Yayasan Selangor building next month to start work on the underground station, which is one of 13 stations for the 51km Sungai Buloh-Kajang MRT line.

It will then take over the basements of both buildings to build the station, which means the retailers may have to move out next year.

There are also talks on whether to redevelop BB Plaza or leave the building as it is.

Nur Jazlan said while he supported the building of the station, the redevelopment of BB Plaza would harm the agenda to provide space for Bumiputera retailers in the capital city’s main shopping district.

“If we were to redevelop BB Plaza, the replacement cost will be high and we have to increase rental rates. This will complicate our Bumiputera agenda. It is better to leave the building as it is.”

He said if MRT Corp were to acquire the plaza, the benchmark would be RM374 million for the building.

"BB Plaza is the only prime asset we have left but if we can get RM374 million for the property, based on current market value, then we are willing to let it go.

"This is a national project and if asked by the government to sacrifice the building, we will comply. However, we will also seek compensation for the retailers," he said.

If the asset sale does go through, it won't be the first deal between UDA and MRT Corp. About six months ago, MRT Corp paid UDA RM80 million to acquire UO Superstore and Plaza Warisan in Kuala Lumpur, RM40 million below market price, to build an MRT station at the sites.

EPF not planning to buy Battersea

By Sharen Kaur
sharen@nstp.com.my
Published in NST on June 1, 2012

KUALA LUMPUR: The Employees Provident Fund (EPF) is not bidding for the Battersea power station in London but it has been approached by companies that have tendered for the property to offer financing, said an official.

It was reported that EPF is poised to snatch the Battersea power station from London-based football club Chelsea FC with an offer worth STG375 million (RM1.84 billion).

According to the Financial Times, EPF is in late-stage negotiations with Ernst & Young and Knight Frank, which are running the sale.

EPF deputy chief executive officer for investment, Datuk Shahril Ridza Ridzuan, told Business Times that it was looking for properties in London but not the Battersea power station.

"We are not bidding for it. The report is wrong. All I can say is that we have been approached by companies who are bidding for it to be their financial partner," Shahril said, without disclosing names.

EPF is believed to be negotiating with British supermarket chain Sainsbury for the purchase of its distribution centre outside central London for RM400 million, and two more properties there for a combined RM1.5 billion.

The acquisitions are part of EPF's plan to invest up to RM5 billion in the British capital's property market. 

The Battersea power station is a highly sought after asset as investors compete over land in one of the world's top financial centres.

The site has been the subject of several failed takeover bids, including plans to turn it into a theme park, a concert venue and an office development.

SP Setia, Malaysia's largest listed property developer by revenue, was said to be making a fresh bid for the 15.78ha site after its redevelopment plans were rejected last year.

There were reports stating that EPF is expected to join forces with SP Setia and RREEF, Deutsche Bank's real estate arm, to convert the site into a mixed development worth close to RM7 billion.

Chelsea's Russian owner Roman Abramovich allegedly is bidding for the Battersea power station, built in the 1930s, to turn it into a 60,000-seat stadium for his club.

According to a report by property researchers CoStar, the bid from Chelsea was significantly less than that from EPF and SP Setia.

Pelaburan Hartanah vets proposals to develop site

By Sharen Kaur
sharen@nstp.com.my
Published in NST on June 1, 2012

PELABURAN Hartanah Bhd (PHB), which owns the 8.09ha land on Jalan Bangsar, Kuala Lumpur, where the Unilever headquarters and factory once sat, is scrutinising the few proposals it has received to develop the area, said people familiar with the matter.

PHB had pre-qualified more than five property developers last year, to submit their proposed masterplan for the land development.

Among the developers are SP Setia Bhd and Mah Sing Group Bhd.

It is understood the developers have submitted their proposals to PHB early this year and they are being reviewed currently.

Sources said the developers are proposing to build office towers, serviced residences, hotels and a retail mall, similar to Setia Eco City and Mid Valley Megamall in Kuala Lumpur, and Icon City in Petaling Jaya, Selangor.

They said the project will have a gross development value exceeding RM4.5 billion. 

"We do not know how PHB will pen out the land development. We think PHB is looking at a joint venture development so it could continue to enjoy the residual profits from the project and capital appreciation in the development, should they choose to take the properties in kind.

"That is why they are taking time to scrutinise the masterplan. They want to do it properly to extract the best value from the land," said a source.

Formerly a well known landmark housing Lever Brothers' soap and margarine factory, the land has been left unoccupied since Unilever Malaysia moved out in 2003.

The land used to belong to Perbadanan Aset Keretapi but came under the ownership of PHB in early 2011. 

PHB is a subsidiary of Yayasan Amanah Hartanah Bumiputera, created under Budget 2006, with an initial capital of RM2 billion, to promote Bumiputera ownership of prime real estate.

A property valuer said the land could fetch around RM300 per sq ft, translating to about RM300 million.

"We believe PHB is in no hurry to sell the land and that is why it could be taking its time to evaluate all the proposals. We think PHB can get a better deal if they call for a tender," the value said.

Other developers eyeing the land include UEM Land Holdings Bhd, Malaysian Resources Corp Bhd and Glomac Bhd.