MRCB eyes 11.6ha govt plot

By Sharen Kaur
sharen@mediaprima.com.my
Published in NST on June 30, 2014

MALAYSIAN Resources Corp Bhd (MRCB) is said to be targeting an 11.6ha government land adjacent to its PJ Sentral project in Petaling Jaya under a possible privatisation deal.

The plot, home to the former Hotel Singgahsana, Petaling Jaya Magistrate Court and the Chemistry Department, has a potential gross development value (GDV) of more than RM7 billion.

Business Times understands that the land, owned by the Department of Director General of Lands and Mines under the Natural Resources and Environment Ministry, is valued at more than RM600 million, or over RM450 per square feet.

A privatisation proposal for that piece of land was submited by a consortium led by Nusa Gapurna Development (NGD) Sdn Bhd about four years ago, although a deal did not materialise.

NGD — a 60:40 partnership between Gapurna Sdn Bhd and the Employees Provident Fund (EPF) — had a 70 per cent interest in the RM3 billion PJ Sentral mixed development, but was involved in an asset injection exercise with MRCB.

The Selangor State Development Corp (PKNS) had owned the remaining 30 per cent.

“MRCB, which now owns 100 per cent of PJ Sentral after an out-of- court settlement with PKNS recently, wants to take over the 11.6ha land under a privatisation deal, with the government getting payments based on the project value.

“The idea is to have a bigger development that can generate higher GDV than the current estimates," sources said.

MRCB, under the leadership of Tan Sri Mohamad Salim Fateh Din, and NGD, a company that he controls, recently reached a settlement agreement with PKNS Holdings Sdn Bhd over the sale of PJ Sentral Development Sdn Bhd, the owner of PJ Sentral.

In March, PKNS Holdings had filed an injunction to stop MRCB and NGD from completing their multi-million-ringgit merger plans, following MRCB’s proposed acquisition of the 70 per cent equity in PJ Sentral Development from NGD for nearly RM200 million.

The settlement agreement saw MRCB paying RM85.3 million cash for PKNS’ 30 per cent stake in PJ Sentral Development.

MRCB is currently involved in the RM11 billion KL Sentral transport hub in Brickfields, Kuala Lumpur. Its other ongoing projects are Puncak Iskandar in Johor and Taman Kajang Utama in Kajang, Selangor.

Country’s tallest building to be called KL118 Tower?

By Sharen Kaur
sharen@mediaprima.com.my\
Published in NST on June 26, 2014

KUALA LUMPUR: The Warisan Merdeka tower, Malaysia’s future tallest building, could be officially known as KL118 Tower and will also feature four residential blocks, all worth some RM5 billion.

Until now, the 118-storey skyscraper has been known as Warisan Merdeka. But an established Finnish company, which was awarded a lucrative contract to supply elevators and escalators for Warisan Merdeka, may have opened the lid on the tower’s official name.

KONE Corp, in announcing that it has received an order from PNB, yesterday said: “...will be supplying 105 elevators and escalators to KL118 Tower, a 118-storey mixed-use tower developed by PNB Merdeka Ventures Sdn Bhd in Kuala Lumpur”.

PNB Merdeka is a subsidiary of PNB, the country's biggest asset manager.

KONE said the project will feature more than 400,000 square metres of residential, hotel and commercial functions, and will be linked to a metro station.

  “KL118 Tower is expected to be the tallest building in Malaysia upon completion in 2019, a new landmark of the country. Its second phase of development will consist of another four residential towers,” it added.

According to previous reports, the whole development will take shape on a 7.6ha site, located within the enclave of Stadium Merdeka and Stadium Negara.

The two stadiums will be retained as national heritage buildings.

 The project’s gross development cost is expected to be around RM3 billion.

Warisan Merdeka will be the tallest building in Malaysia at more than 500 metres, surpassing the 452-metre Petronas Twin Towers.

  Business Times recently reported that PNB Merdeka is expected to award a few more contracts over the next several months for clearance works and infrastructure development.

  The contract for the superstructure will also be tendered out by year-end or early next year.

  In March, the first contract worth RM74 million went to Pintaras Geotechnics Sdn Bhd, a unit of Pintaras Jaya Bhd, which will undertake the foundation works for the tower.

KONE, which is listed on the NASDAQ OMX Helsinki Ltd in Finland, said the supply of 105 energy-efficient elevators and escalators for KL118 Tower was booked in the current quarter.

The company, however, did not disclose the contract value.

BBCC project tostart next year

By Sharen Kaur
sharen@mediaprima.com.my
Published in NST on June 25, 2014

RM10B GROSS VALUE: UDA Holdings ropes in Eco World and EPF to kick-start redevelopment

WORK to redevelop the former Pudu jail site here into a mega development worth up to RM10 billion will be started early next year by a consortium comprising Eco World Development Holdings Bhd.

Eco World and landowner UDA Holdings Bhd will have a 40 per cent stake each in a special purpose vehicle (SPV) to be set up soon, while the Employees Provident Fund (EPF) will own 20 per cent.

The equity structure is similar to the Battersea Power Station redevelopment in London undertaken by a Malaysian consortium of SP Setia Bhd, Sime Darby Bhd and the EPF, said UDA Holdings chairman Datuk Johari Abdul Ghani.

He said Eco World was chosen as the preferred partner for the project, known as the Bukit Bintang City Centre (BBCC), because of the people behind it led by Tan Sri Liew Kee Sin.

“We invited Eco World to participate in the project. We want BBCC to be a world-class tourist destination. With the experience and connection of Liew, we are quite confident of the project’s success.

“We are targeting local and foreign investors and property buyers. With Liew behind it, we are sure it will be a success.

“This is the last piece of prime land in Kuala Lumpur that we have and we don’t want it to turn into another abandoned project like Plaza Rakyat,” Johari said at a media briefing, here, yesterday.

BBCC will be developed on a 7.85ha site that once housed the 101-year-old Pudu Jail, which was closed in 1996.

He said three developers, including Naza Group and Malaysian Resources Corp Bhd, were shortlisted for the project last year after a request for proposal, but their proposals were found unsuitable for the development.

“Their proposals were to take the land outright and give us royalty. Through this consortium, UDA Holdings will execute the development rights to the SPV, which will be the master developer.

“The SPV will procure project funding, while UDA Holdings will grant it the development rights with the land valued at RM1,200 per square feet, slightly over RM1 billion. UDA will ensure that the SPV will not sell nor charge the land to a third party,” Johari said.

BBCC, to be developed in seven years, will have three residential towers consisting 2,000 units, a 40-storey block, a one million square feet retail mall, an entertainment hub, a transit hub and a mosque.

The jewel in the crown will be an 88-storey signature tower, a close comparison to Burj Khalifa in Dubai, Johari said.

He said one third of the tower will comprise strata title office, and the rest will feature up to 400 hotel rooms and exclusive condominiums.

Business Times reported yesterday that the BBCC project will cost more than RM5.5 billion.

According to Johari, more than RM1 billion will be invested in infrastructure, including the transit hub and traffic dispersion system, to ensure smooth traffic flow.

“We even plan to have high ceiling for underground parking so that buses will have ample parking space.

“BBCC will offer another iconic tower for Kuala Lumpur, and I am sure every developer in the Pudu area will want to have our 88-storey tower as a backdrop for their project, just like the Petronas Twin Towers,” he added.

Oxley to launch 8 projects worth RM10b

By Sharen Kaur
Published in NST on June 24, 2014

KUALA LUMPUR: Oxley Holdings (Malaysia) Sdn Bhd may be a new kid on the block but it has eight projects worth about RM10 billion to launch over the next four to five years.

 The projects, featuring condominiums, villas, office towers, hotels and retail units, are located in the Klang Valley, Iskandar Malaysia in Johor, and Penang.

Oxley Malaysia is a unit of Singapore-listed Oxley Holdings Ltd, a lifestyle property developer that builds residential, commercial and industrial properties at competitive prices.

 Oxley Holdings’ strong performance in Singapore has built a sturdy foundation from which to pursue opportunities overseas.

  It currently has a premier waterfront development called Royal Wharf in London, four projects in Cambodia, two in China, and now, eight in Malaysia.

The Malaysian unit was set up recently to support its pipeline of overseas projects.

The company is headed by
Datuk Othman Omar, the former general manager of PKNS (Selangor State Development Corporation).

According to Othman, the company expects to launch three to four projects in the second half of this year or early next year.

 “Oxley Holdings has been successful in Singapore with the shoe box concept where it makes small units that are affordable. We will duplicate that concept here,” he said in an interview with Business Times recently.

  Othman said Oxley Malaysia will be prudent with all its developments to ensure that they are integrated, have the right product mix, brand and security features.

 He is bullish on prospects, given the strong brand name and reputation of Oxley Holdings.

  Citing Royal Wharf, he said when Phase 1 was launched in March, both in London and Singapore, all of the 811 units were sold out within two weeks of its launch, at more than £400 (RM2,192) per sq ft.

 The units comprised townhouses, three-, two- and one-bedroom apartments and studio units.

   Othman said Phase 2A of Royal Wharf was scheduled to be launched last weekend.

 The project is expected to receive robust interest, from end-buyers and investors, due to its strategic location, accessibility and affordable prices, he said.

 “The market is soft now and developers have to change the way they do things and make their projects more appealing to buyers Buyers (now) are more educated and they look for yield,” he said.

‘Pudu regeneration to cost over RM5.5b’

By Sharen Kaur

Published in NST on June 24, 2014

KUALA LUMPUR: The Bukit Bintang City Centre (BBCC) project here will cost more than RM5.5 billion and project owner UDA Holdings Bhd is looking for a financially-sound developer with a good track record to help it develop the site, say sources.

  BBCC will be developed on a 7.85ha site that once housed the 101-year-old Pudu Jail, which was closed in 1996.

  UDA may reveal its joint-venture partner at a media briefing today, albeit rumours that Eco World Development Group Bhd, Malaysian Resources Corp Bhd and Naza Group are among a few companies that have been shortlisted to be the preferred partner.

Government-owned UDA plans to convert the land into an iconic development, which will comprise more than five residential and commercial towers, a hotel, a mall and a retail strip.

  It is also expected to have a transport hub, complementing Pudu Sentral (formerly Puduraya Terminal), which is operated by UDA.

  Sources said the gross development value for BBCC is expected to be between RM8 billion and RM10 billion and the project will take around 10 years to complete.

  According to a source, the Finance Ministry will kick-start the project with a small funding.

  A news portal report recently tipped Eco World to win the Pudu Jail redevelopment deal.

  Quoting a source from Eco World, the portal said the company is entering into a 70:30 joint venture with UDA to develop the site.

  Eco World chief executive officer Datuk Chang Khim Wah was overseas and he was unable to comment.

  “This (BBCC) is a huge development... UDA wants a developer who is able to sell the project to both local and foreign buyers. For the office towers, they are looking at en bloc deals and for the mall, we can expect an international operator,” a property specialist said.

  He said this was the right time to start the project with the ongoing infrastructure developments in Kuala Lumpur, such as the mass rapid and light rail transit lines.

  The site has been abandoned for the past few years despite being made an Economic Transformation Programme project. 

  UDA had called for a request for proposal to develop BBCC last year.

  The company held a concept briefing on September 23, which was attended by 24 developers. 

  Five developers, including one from Singapore, were reported to have submitted proposals for the redevelopment. 

IOI Prop plans RM16b launches

By Sharen Kaur
Published in NST on June 24, 2014

DEVELOPMENTS IN 3 YEARS: 70pc of new projects will be priced below RM1m

  IOI Properties Group Bhd is preparing to launch RM16 billion worth of new projects over the next three years as the company is bullish about the local property market.
  Chief executive officer Lee Yeow Seng said the company is scaling up launches to gain more confidence from buyers and investors.
  “The local property market has taken some correction this year on the back of strong growth in the past two years and due to recent cooling measures by the government to curb speculation. It is good that the market is taking a breather.

  “Once buyers digest all these, including the Goods and Services Tax next year, we will see another rebound in 2015 due to limited supply in the last one year,” Lee said in an interview, here, recently.
  He said 70 per cent of the new projects will be priced below RM1 million.
  These are properties will be located within existing projects and new developments in the Klang Valley, Johor, Singapore and China.
  According to Lee, IOI Properties, which has a market capitalisation of RM8.5 billion, will have between 40 and 50 projects by 2017.
  The company has 20 ongoing projects currently, with a gross development value of RM5 billion.
  By year-end, it plans to launch two new townships in the Klang Valley worth a combined RM4 billion.
  They are Bandar Puteri Warisan in Kota Warisan, located nearby the Kuala Lumpur International Airport 2 in Sepang, and Bandar Puteri Bangi.
  Meanwhile, on house prices, Lee expects them to continue to increase due to an uptrend in the prices of oil and building materials.
  “We are now seeing the effects of subsidy rationalisation. Input cost is going up, and definitely, inflation will set in. With all these taking place, house prices will surely rise,” he added.

YTL HOTELS DOES MALAYSIA PROUD BY WINNING THREE AWARDS AT THE PRESTIGIOUS GOURMAND WORLD COOKBOOK AWARDS IN BEIJING

YTL HOTELS DOES MALAYSIA PROUD BY WINNING THREE AWARDS AT THE PRESTIGIOUS GOURMAND WORLD COOKBOOK AWARDS IN BEIJING

Kuala Lumpur, Malaysia – May 23, 2014: There was much excitement in the air at the Beijing Daxing Theatre on May 21, 2014, where the annual Gourmand World Cookbook Awards was held. Authors, publishers, culinary television personalities and food and beverage industry professionals from all over the world graced this special event to vie for top placing in various award categories from best wine and cookbooks to the best television personality for year 2013. The Awards is an equivalent to the Oscars in the world of cookbooks.

Zwei Freunde – Eine Küche (Two Friends – One Cuisine) was awarded the Special Award of the Jury (Germany and Malaysia) and Best Cookbook of the Year (Germany). Published in Germany by Johann Lafer’s Stromburg and photographed by Michael Wissing, the stunning bilingual (German and English) coffee table book showcases the passion for food and life of two celebrated chefs in Malaysia and Germany. The book is a result of a great culinary and personal friendship between Johann Lafer, Austrian Michelin-starred chef and television personality in Germany and Wai Look Chow, award-winning Corporate Executive Chef at YTL Hotels in Malaysia. The book features Asian specialities infused with Austrian-German influences conjured by Chef Wai and distinct Asian touches in Chef Lafer’s creations, discovered whilst on their culinary adventures to Germany and Malaysia. It also includes personal recipes by both chefs and a short film.

“What an honour to have been bestowed the Special Award of the Jury. Having come from a small Styrian village, this is a dream come true and proved that I have done something right in life. My close friendship with Chef Wai and YTL Hotels developed over the years and the friendship is evident as you turn the pages of the book. This special award also shows that different cultures and cuisines can be shared and cooked in total harmony and I am deeply grateful that Zwei Freunde – Eine Küche (Two Friends – One Cuisine) has been recognised at the esteemed Gourmand World Cookbook Awards.”, Chef Lafer said.

Chef Wai added, “Chef Lafer and I have a unique bond which spans almost a decade. We inspire each other and have many fascinating memories which saw us exchanging ideas, creating new dishes with local ingredients, wandering through colourful vibrant markets, vineyards, tea plantations and much more. Each time we meet, we embark on a new culinary voyage. These accolades are great achievements for us and I am very happy and privileged to have received the awards in Beijing for Chef Lafer and myself.”

The third accolade YTL Hotels garnered that evening was for A Perennial Feast. The eclectic culinary coffee table book was awarded second place in the Corporate Cookbook category.

Published by Talisman Publishing, and authored by Ms Kim Inglis, A Perennial Feast takes the reader on a gastronomic journey from Malaysia to Japan and China, and all the way to Europe. Beginning in Malaysia, the heart and home of the YTL Group, it showcases island resorts, city heritage hotels and restaurants, all the while providing an overview of Malay cuisine. Recipes for traditional Malay fare are combined with some East meets West fusion food and innovative seafood dishes. The book then branches further afield into the snowy landscape of Hokkaido and the cityscape of modern Shanghai, whilst exploring both recipes and cuisines from Japan and China. Sections on Indonesia, Thailand, England and France follow – showcasing not just the cuisine but also the iconic properties in full colour photography by Danish photographer, Jacob Termansen, which further enhances the reading experience. The book is simply much more than a restaurant review or a recipe collection. A Perennial Feast is available at the following bookstores in Singapore and Malaysia - Kinokuniya, MPH Bookstores, Times the Bookshop and major bookstores in Southeast Asia and the United Kingdom. The book is priced at SGD49.95/ MYR125/ GBP25 per copy.

“On behalf of Talisman Publishing, myself as author and Jacob Termansen as photographer, I would like to say how delighted we are to learn of our first runner-up placing in the Corporate Cookbook category at the recent Gourmand World Cookbook Awards. From the outset our intention was to showcase YTL’s considerable culinary talents in all their glory — both visually and in text. To keep the subject matter lively, it was decided that both anecdotes and food history be added, as well as recipes and restaurant reviews. The end result is a book that has multiple attractions: there are plenty of recipes, lots of information and a complete roundup of all the YTL restaurants, cafés and kitchens. The team behind the book is very proud of our award.”, said Ms Inglis.

Present to receive the awards were Chef Wai Look Chow and Mr Laurent Myter, Executive Vice-
President, Resorts, YTL Hotels.

The Gourmand World Cookbook Awards was founded in 1995 by Mr Edouard Cointreau, President
and Founder. Books can be submitted for competition by anyone: authors, publishers or even
readers. The Jury decides in which categories those books would compete. 187 countries
participated in the Awards this year.

MOL’s Nasdaq listing in Oct

By Sharen Kaur
Published in NST on June 23, 2014

INTERNET BOOM: IPO will raise US$300 million, of which one third is  for working capital purposes

TYCOON Tan Sri Vincent Tan is listing MOL Global Pte Ltd on the Nasdaq Stock Market in the United States in October and expects the company to be worth US$3 billion (RM9.7 billion) in five years.

  MOL, which bought social networking site Friendster Inc in 2009 for US$26.4 million, expects a market capitalisation of U$1 billion upon listing.

 “Potentially, MOL can be a very big company. If you look at the market capitalisation of Internet companies, they are huge. China’s Alibaba is worth almost US$300 billion, while Tencent, which owns WeChat, is around US$150 billion. 

  “Our target of US$3 billion may be a small fraction of that, but I do believe it can grow. We started the company with just RM2 million in 1999 and have invested RM150 million so far to expand.

“Today, we have presence in 14 countries and are expanding in Latin America, the Middle East and Africa,” Tan told Business Times in an interview recently.

  The company, which owns MOL AccessPortal Bhd, a global online payment service provider, is also targeting growth in Europe, although cautiously, he said.

MOL’s major profit contributor is MOLPoints, which is an all-in-one online currency for games, content and services. 

 The company is 73 per cent owned by Tan, Malaysia’s 10th richest man with a net-worth of US$1.3 billion, and his family. 

 Group chief executive officer and co-founder Ganesh Kumar Bangah and Sultan of Johor, own 12 per cent and 15 per cent of the company, respectively.

MOL will be the first Southeast Asian company to carry out an initial public offering (IPO) in the US in more than four years.

The IPO will raise US$300 million, and one third will be utilised for working capital purposes, Tan said. 

“The balance of around US$200 million will be returned back to me and my family as we dilute our shares for the listing,” he added.

Tan said after listing MOL, he and his family will own less than 50 per cent of the company.

 Stakes of Sultan of Johor and Ganesh will reduce to 14 and 10 per cent, respectively, he said.

  Tan recently listed Convenience store operator 7-Eleven Malaysia Holdings Bhd in a US$250 million IPO.

He is also exploring Welsh soccer team Cardiff City’s listing on Singapore’s small-cap Catalist exchange as well as that of lottery company Sports Toto and mobile phone operator U-Mobile.

China developer upbeat on property sales here

By Sharen Kaur
Published in NST on June 17, 2014

HONG Kong-listed Country Garden will launch Plot B of Country Garden Diamond City in Semenyih, Selangor, by September and is upbeat on property sales, against the backdrop of a sound investment market.

Country Garden Diamond City is a 102ha freehold development that is divided into Plot A and B.

It is a 55:45 joint venture between Country Garden, one of China’s top 10 developers and Mayland Group.

Plot A was launched last November, comprising 415 units of luxury link houses, bungalows and mansions worth about RM710 million.

According to Country Garden Malaysia regional sales and marketing general manager You Li, 70 per cent of the units were sold during the first week of its launch.

Each unit was sold for between RM700,000 and RM5.4 million. Eighty per cent of the buyers were Malaysians and the rest were from China.

Li said the joint venture decided to keep the remaining units in Plot A and are now opening them to the market again.

“We have increased the prices by over 20 per cent because of on-going infrastructure development here, and also the entry of big boys like Eco World Holdings Group Bhd and SP Setia Bhd, which is boosting property prices here.

“I am quite confident we will be able to sell all the remaining units this month,” he said.

For Plot B, the joint venture will have more than 500 units of semi-detached homes and bungalows, worth about RM1.7 billion, Li said.

Diamond City is supported by large facilities that include a clubhouse and world-class golf-themed landscape garden elaborately designed by China’s chief golf course designer.

It is located opposite the University of Nottingham Malaysia campus and is 30km from Putrajaya and 45km from the Kuala Lumpur city centre.

Country Garden, which has achieved RM5 billion sales from Country Garden Danga Bay in Johor within one year, will consider more developments in Malaysia, Li said.

SEMENYIH

sharen@mediaprima.com.my

Chai to file RM100mil lawsuit against Harvest Court and its directors

By Sharen Kaur
Published in NST on June 17, 2014

KUALA LUMPUR : DATUK Eddie Chai Woon Chet, the new substantial shareholder of Harvest Court Industries Bhd (HCIB), says he will file a RM100 million law suit against the company and its board of directors for defamation.

Chai said he does not own 33 per cent of HCIB that could trigger a mandatory general offer (MGO) of the company, as claimed by its managing director (MD) Datuk Raymond Chan Boon Siew.

"I have no knowledge on the MGO and neither do i have any link with Kenneth Voon, as reported. I am an investor, who sees good potential in HCIB. Doesn't mean HCIB is loss-making, it can't turn around," Chai said at a press conference here yesterday.

Chai, the son of Sabah timber tycoon Tan Sri Chai Kin Kong, now controls 19.55 per cent of HCIB, via his private investment vehicle Zenith City Investments Ltd.

The Sabahan, who is also the MD of Astral Supreme Bhd and XOX Bhd, has been actively raising his stake in HCIB since May 7, from 10.1 per cent.

"I will raise my stake in HCIB, but the plan is not to trigger an MGO," Chai said.

Last month Zenith City served a summon against HCIB and its directors including Chan, for not disclosing information on his substantial shareholding in a circular to shareholders calling for an annual general meeting (AGM) on June 24.

There are six resolutions to be passed at the AGM, including re-electing Chan as a board member.

Zenith City is taking legal action against them for failing to act on its notice dated May 12 requesting certain resolutions to be considered and passed at the AGM.

It had proposed the appointment of Chai, Wong Kwai Wah and Datuk Seri Abdul Azim Mohd Zabidi to the board of HCIB.

Chai was tight lipped when asked whether he will stop the re-election of Chai and other board members at the AGM.

"We see what happens at the AGM. If i am appointed to the board of HCIB, I will inject several on-going property development projects worth over RM1 billion into the company.

"Under Zenith group, I also have building construction projects worth several hundred millions of ringgit. These projects are churning profits. I plan to inject them into HCIB, and return it to profitability," Chai said.

Raising stakes on Berjaya Hills

By Sharen Kaur
sharen@mediaprima.com.my
Published in NST on June 17, 2014

  RM3b COMPLEX: Tycoon wants to re-apply for licence to operate

BERJAYA group founder Tan Sri Vincent Tan will apply for a licence to operate a casino at Berjaya Hills Resort in Pahang, and will invest RM3 billion initially to set up the complex.

Tan is prepared to pump in the money to turn Berjaya Hills, here, into a world-class tourist destination and Malaysia’s biggest tourism development.

He will also bring in investors to develop the complex, which will include a gaming centre, indoor and outdoor theme parks, food outlets, a retail mall, hotels, a convention centre and holiday homes.

In an interview with Business Times, Tan said he hopes there will be no objections from any parties as the casino complex will benefit Malaysia in foreign exchange gain and economic spillovers.

Tan expects to employ about 10,000 locals to run the complex.

“Malaysians and foreigners are spending their money on gambling, hotels and food in Singapore, Macau, Cambodia, the Philippines and Las Vegas. I’m sure they would like to come here. We can expect hundreds of buses from Singapore to come here.”

Tan had applied for a licence to operate a casino at Berjaya Hills more than 10 years ago but it was rejected amid protests from some quarters.

Berjaya Hills, which is just minutes away from the country’s only casino in Genting Highlands, has a permit to operate slot machines.

“We will re-apply for the licence.  Malaysia should not stick to one operator. It should be shared with other operators as tourism developments can generate a lot of income for the country. 

“South Korea, Japan and Taiwan are looking to give out licences to operate casinos as they realise the full potential of such developments. 

“We will market Berjaya Hills as a new casino destination globally. I have 4,600ha in Berjaya Hills and there is lot that can be done with such a licence.”

  Berjaya Hills, which is home to Colmar Tropicale, The Chateau Spa and Organic Wellness Resort, a golf and country club and other recreational facilities, employs about 800 people.

The idea for Berjaya Hills was mooted by former prime minister Tun Dr Mahathir Mohamad who, after a trip to the Alsace region in France, suggested that Tan replicate the development here.

BLand: Prices will continue to rise

By Sharen Kaur
sharen@mediaprima.com.my
Published in NST on June 9, 2014

BERJAYA Land Bhd (BLand) says the price of properties will continue to rise, given the higher building materials and labour costs.

BLand chief executive officer Datuk Francis Ng Sooi Lin expressed his concern about the goods and services tax (GST) once it is implemented in April next year.

He said the GST will affect everyone across the board, including property developers and house buyers, as the prices of raw materials, goods and services are raised further.

According to him, there is no way developers will be able to lower the price of properties.

“If you want to buy a property, do it now as the longer you wait, the more you will end up paying. Raw material prices have increased by as much as 30 per cent since 2009 and they keep on increasing.

“For developers, if profits are anything less than 10 per cent, then it is not worth doing. There are other costs to factor in, including fees that need to be settled,” he said in an interview, here, recently.

Berjaya Land, which is the property arm of Berjaya Corp Bhd, has ongoing projects in Malaysia, South Korea, Japan, China, Thailand and Vietnam.

Its flagship projects include Vasana 25@Seputeh Heights, ThePeak@Taman TAR, Berjaya Central Park in Kuala Lumpur, Berjaya Jeju Resort in South Korea, and Berjaya Great Mall of China in Yanjiao City, China.

For the RM2 billion Berjaya Central Park in Jalan Ampang, Ng expects the project to contribute between 20 and 25 per cent to the company’s bottom line.

Ng said the cost of the project, comprising Menara Bangkok Bank and The Ritz Carlton Residences, has gone up by more than 10 per cent to RM1.2 billion in the last four years. This includes land cost, which was acquired around 14 years ago for RM790 per sq ft.

The Ritz Carlton Residences, which will be launched this month, is selling at more than RM2,500 per sq ft.

“I don’t think the local property market will ever crash as it is supported by local buyers. Given the choice of the right locations and prices, we are not short of buyers. 

“If you have a market crash, it is because the interest rates have shot up drastically. It is still a safe play in Malaysia,” Ng said.

Berjaya Corp executive director Datuk Zurainah Musa (left) and Berjaya Land CEO Datuk Francis Ng Sooi Lin with the scale model of The Ritz Carlton Residences, to be launched this month. Pic by Effendy Rashid

Eco World upbeat on expansion strategy

By Sharen Kaur
sharen@mediaprima.com.my

ECO World Group Bhd expects its asset injection exercise and property sale to give it surplus cash to support its expansion costs.

The developer has been aggressively acquiring land over the last 10 months in the Klang Valley, Johor and Penang.

Its last major transaction was in March, when it acquired 128ha near Kota Kemuning for RM470.67 million cash.

Eco World has set a sales target of RM2 billion for fiscal year 2014 and RM3 billion for 2015.

Its president and chief executive officer Datuk Chang Khim Wah is upbeat that Eco World will achieve its sales target for this year.

“We are in the luxury market, township development, business park, and integrated projects.
In our experience in the property cycle, there will always be something that does well, even amid soft market conditions,” he said at Invest Malaysia 2014, here, yesterday.

Eco World’s first two projects — EcoBotanic and EcoSky — have achieved combined total sales of RM1.13 billion as at March 31 this year.

Last month, Eco World showcased EcoMajestic in Semenyih, Eco Spring and Eco Summer
in Tebrau Teguh, and Eco Business Park I in Iskandar Malaysia, with a combined gross development value (GDV) of RM20.8 billion.

Chang said for Phase 1 of EcoMajestic, there was a 95 per cent take-up rate for the 612 units of terraced homes.

The two projects in Tebrau Teguh saw a take-up of 85 per cent for the combined 197 cluster and semi-detached units and 497 terraced homes.

He said the strategies used by Eco World to deliver a strong and sustained growth is dependent on several factors, including the size, location, landbank quality, diversity of product, accessibility, three-tier security and execution capability.

The asset-injection exercise, meanwhile, is expected to be completed by end-October, where Eco World will have RM1.3 billion cash in hand, which it will spend on expansion.

Eco World has a total of 11 projects with GDV of RM43 billion.

It has five other projects that will be unveiled over time. They include EcoSanctuary in the Klang Valley, the newly-revamped EcoTropics, Eco Business Park II and Eco Business Park III in Iskandar Malaysia and EcoMeadows on mainland Penang.

‘Ignore bubble rumours’

By Sharen Kaur
Published in NST on June 11, 2014

MALAYSIANS should ignore rumours that a property bubble is forming in the local housing market, said IOI Properties Group Bhd chief.

According to executive chairman Tan Sri Lee Shin Cheng, the market is moving sideways at the moment as banks are controlling lending.

“It is difficult to get financing now,” he said at Invest Malaysia, here, yesterday.

However, Lee said he has expected property prices to move upwards after the cooling measures introduced by the government.

“The market is stable now but I expect that in time to come, it will move upwards and the next hike will be higher than the one before the financial crisis,” he said.

On the group’s expansion, Lee said IOI Properties is focusing on building smaller units but offering wider varieties to appeal to buyers.

“This is what most developers are doing and we have also moved in that direction.”

He said developers are still launching new housing projects but sales have been slow.

Buyers have generally held back after the government came out with cooling measures to reduce speculative demand in the property market.

These include an increase in real properties gain tax, curbs to Developer Interest Bearing Schemes and stricter loan-to-value ratio.

ERLSB tracking new profit path

By Sharen Kaur
Published in NST on May 31, 2014

KUALA LUMPUR: Rail operator Express Rail Link Sdn Bhd (ERLSB) is developing a new growth path to boost its revenue and profit.

Chief executive officer Noormah Mohd Noor said ERLSB is planning to build a train station at Mid Valley Megamall, here.

She said the company is working on a proposal for submission to the Transport Ministry and Public Transport Commission (SPAD).

"A lot of people have been asking us what we are going to do next in order to grow. There should be a stop at the Mid Valley Megamall to cater to passengers. But the decision depends on the ministry, SPAD and the other stakeholders.

"We also are working towards increasing our ridership by 40 per cent this year, helped by the new Kuala Lumpur International Airport 2 (klia2) in Sepang," she told Business Times recently.

ERLSB, majority controlled by YTL Corp Bhd, won a 30-year concession in August 1997 to finance, build, maintain and control the express rail link (ERL) operations between KL Sentral in Brickfields and Kuala Lumpur International Airport (KLIA) in Sepang.

ERLSB has also built a 2.2km line extension to klia2 at a cost of RM100 million.

The ERL line, which is served by 12 four-car train sets, carries around 19,000 passengers daily. The trains stop at two terminals (KL Sentral and KLIA) via KLIA Ekspres, and three intermediary stations (Bandar Tasik Selatan, Salak Tinggi and Putrajaya) via KLIA Transit.

Noormah expects total passenger volume to rise by two million to 8.4 million passengers this year and 10 million next year.

"We are looking at buying four new train sets to cater to higher passenger volume. We may acquire them from either Europe, Japan or China," she said.

Noormah said the deal will be finalised within the next two to three months and delivery of the trains will take 23 months.

Tropicana to step up growth via partnerships

By Sharen Kaur

TROPICANA Corp Bhd plans to accelerate its growth via strategic partnerships, said its group chief executive officer Datuk Yau Kok Seng.

He said the company is in talks with several international property developers and investors.

"This is part of our plan to transform the company into a bigger entity. We rebranded the company last year and now want to grow the company, albeit cautiously," he said after launching a sales gallery in Singapore recently.

Tropicana's transformation blueprint includes unlocking value through development and land sales, de-gearing and strategic partnerships, which are potential significant re-rating catalysts.

To sustain its strong sales and profitability growth, the company has added several key management personnel with vast experience in property development and corporate strategy.

In the last three years, Tropicana's new sales have increased to RM2.17 billion from RM429 million in 2011. Its net profit has risen to RM378 million from RM77 million.

On the Singapore sales gallery, Yau said it is aimed at generating awareness on the company's projects in key growth regions, namely Penang, the Klang Valley and Johor.

The two-level sales gallery is located on the ground floor of TripleOne Somerset, near Orchard Road.

Yau said the sales gallery will help make Tropicana's projects more accessible to potential buyers in Singapore, Hong Kong, Indonesia, China and Australia.

"About 40 per cent of the buyers of our integrated projects are Malaysians and expatriates living in Singapore, and Singaporeans. Singapore, for us, is an ideal location to promote and sell the Tropicana collection.

"We will use the sales gallery as a platform to showcase all our developments, especially in Penang and Johor," he said.

Tropicana has four projects in Johor, namely Tropicana Danga Bay, Tropicana Danga Cove, Tropicana Senibong and a development in Mukim Pulai.

In Penang, it has developed Tropicana 218 Macalister, which comprises 208 hotel rooms, 211 commercial suites and 88 units of serviced apartments.

IGB scaling up hotel portfolio

By Sharen Kaur
Published in NST on May 29, 2014

KUALA LUMPUR: IGB Corp Bhd will invest up to RM2 billion to acquire or construct hotels in Europe, Africa and Asia.

Group managing director Datuk Seri Robert C.M. Tan said IGB will inject RM500 million for this purpose.

"With the capital injection, we can acquire up to RM2 billion worth of properties as we can borrow from banks. We will build from scratch or take over existing hotels. Buying would be faster as we get immediate revenues. But in Europe, I'd rather build."

Tan said the company may also consider acquiring troubled hotels in the Middle East.

IGB is scaling up its hotel portfolio, which currently contributes 20 per cent to its revenue and profit.

The group operates around 6,500 hotel rooms. It will add more than 1,500 rooms when it opens Cititel Express and Wembley-St Giles Premier Hotel in Penang, Cititel Express Ipoh and St Giles Hotel in Sydney within six to 24 months.

Tan is not ruling out the possibility of launching a hotel and commercial real estate investment trust (REIT) in the future.

"We have sufficient properties to launch a hotel or commercial REIT but the environment is not suitable now because of the United States tapering and high interest rates.

"REIT is not the end-game as we have recurring income and assets to raise bonds. It is cheaper to also borrow from banks to expand," he said after the company's shareholders meeting, here, yesterday.

KSK Land: Listing an option

By Sharen Kaur
Published in NST on May 29

KUALA LUMPUR: KSK Land Sdn Bhd, the property arm of KSK Group Bhd, may consider raising capital from the local stock exchange in the future to expand, says its chief.

"We may list KSK Land to raise funds, but at the moment there are no plans. The focus currently is to build the property development portfolio of the company by undertaking luxury projects in the Klang Valley and Penang. In the future, we will expand in Central London," said its managing director Joanne Kua.

KSK Group has two general insurance operations in Indonesia and Thailand.

It ventured into property development last year, after selling its core insurance business, Kurnia Insurans (M) Bhd, to AmG Insurance Bhd in September 2012.

KSK Land's flagship project is 8Conlay, which is a luxury mixed commercial development located on Jalan Conlay, next to Prince Hotel & Residence here.

Kua said the projected gross development value for 8Conlay is RM4 billion.

The gross development cost for the project, including land acquisition, is RM2.37 billion.

8Conlay will feature three towers and an eight-storey podium for retail and parking.

The tallest tower is 60 storeys high and will house a five-star hotel and serviced residences totalling 601 units.

The other two blocks, standing at 51 and 56 storeys each, will comprise 1,147 units of serviced apartments.

Kua said the serviced apartments will be developed in four phases, and Phase 1 will launch early next year at an average RM2,500 per sq ft.

"We will call for tenders in the third or fourth quarter of this year. We expect construction to commence by early next year," she said at a media briefing here yesterday.

Kua said the hotel, serviced residences and serviced apartments will be managed by an international hotel operator.

She said, KSK Land is in talks with two to three hotel operators, but declined to name them.

Business Times has reported that the company is talking to Kempinski, Europe's oldest luxury hotel outfit, and Nevada-based gaming and hospitality company, MGM Resorts International, to manage the properties.

Setback to MAHB plan

By Sharen Kaur
Published in NST on June 2, 2014

CARGO AND LOGISTICS HUB: AirAsia wants headquarters at LCCT to stay put for another year

AIRASIA Bhd may have delayed Malaysia Airports Holdings Bhd’s (MAHB) plan to turn the Low-Cost Carrier Terminal (LCCT), here, into a global cargo and logistics hub this year.
According to people with knowledge on the matter, AirAsia wants its headquarters to remain at the LCCT for at least another year.
The LCCT is a two-storey building and the AirAsia group occupies half of the second floor.
“AirAsia’s new headquarters at Kuala Lumpur International Airport 2 (klia2) was supposed to be ready when the airport opened.
However, it is having funding issues... AirAsia can’t seem to make up its mind and comply with the terms and conditions,” a source said.
According to the sources, this is a setback for MAHB, which wants to grab a piece of the multi-billion ringgit cargo and logistics business  to improve its non-aeronautical revenue.
“MAHB sees a range of opportunities in the cargo and logistics business. It wants to move high-value and sensitive cargo,” the source said.
Business Times recently reported that the transformation of LCCT will take place soon after all airlines have moved to klia2.
Malindo Air, Cebu Pacific Air, Tiger Airways, Mandala Airlines and Lion Air moved to klia2 on May 2, while AirAsia did so on May 9.
“AirAsia requested the government to allow the group to maintain its office at LCCT up to early next year while it decides on how and when to develop its new facilities at klia2.
But the government has rejected the request.
“AirAsia knew three years ago that it was supposed to have the building ready when klia2 opened,” said a source.
The source added that AirAsia is appealing to the prime minister to allow the group to stay at the LCCT.