Sunil counting on drive and passion

By Sharen Kaur
sharen@mediaprima.com.my
Published in NST on July 31, 2014

ENTREPRENEURS need to evaluate their economic activities and focus not just on numbers, but also the qualitative aspects of the business, says a former DiGi Telecommunications Sdn Bhd staff-turned-entrepreneur.

“Anything can be a business and it must be legal. Anyone can become a businessman with drive and passion. But one must first strengthen competitiveness, foster greater capacity for technology and innovation, and have financing in place,” said Sunil Sachdev. 

Sunil left DiGi after 13 years to pursue his own business, moving from telecommunications to more leisurely ventures. 

Prior to DiGi, he had worked at Telekom Malaysia Bhd for eight years.

Sunil said what inspired him to move forward was the farsightedness of two businessmen, Tan Sri Jeffrey Cheah and the late Tan Sri SM Nasimuddin SM Amin, and their drive to succeed.

Nasimuddin founded Naza Group in 1974 as a used-car dealer. He was 19 when he used the RM80,000 he had saved up from helping his contractor father to start his automobile business with an allocation of Approved Permits (APs) to import foreign cars. 

He made his first RM1 million in about a year.

Today, Naza operates more than 14 businesses.

Cheah, meanwhile, bought a tin mining area in Bandar Sunway for RM100,000 in the 1970s to build Sunway Resort City, an award-winning integrated township development.

“They both went on to build an empire. They believed in what they were doing and that has inspired me,” Sunil told Business Times, in an interview here, recently.

Sunil currently operates restaurants under the Restaurant Chappatidotcom Group (CDC) and consultancy and real estate services where he works with property developers on projects and land matters.

He also runs Classic Floral Services, an event management company founded in 1998, which manages large-scale private and corporate functions.

Most of the businesses are operated by Sunil and his wife, Cindy.

CDC was founded by him and his partners Updesh Gill, Harry Sidhu and Sanjit Sidhu two years ago.

According to Sunil, CDC plans to expand its Restaurant Chappati.Com chain within the Klang Valley due to popular demand, and venture into other businesses. 

“We hope to make Chappati.Com a brand that lingers in people’s mind, and one to be proud of as this is a Malaysian brand. We believe we can achieve this with our expertise in this industry,” he said.  

Combined, they have almost 40 years of experience in the food and beverage, and entertainment industries. Sunil through Classic Floral Services and Updesh via her family-run business, Hasheel Sidhu. 

The Chappati.Com restaurant. (top). Sunil Sachdev (inset) says one can become a good businessman by being competitive and innovative.

Putrajaya to have more hotels in next two years

By Sharen Kaur
Published in NST on July 30, 2014

PUTRAJAYA will see the unveiling of more hotels over the next two years, raising fears among the existing operators who are scrambling for business with 1,267 rooms available currently.

 The latest opening was the 382-room Everly Hotel by Putrajaya Holdings Sdn Bhd.

 The hotel is managed by the Everly Group and is linked to Alamanda Shopping Centre, the main shopping and leisure attraction in Putrajaya.

 The longest serving hotels in Putrajaya are the four-star Palm Garden Hotel that opened in 1995, the five-star Putrajaya Marriot Hotel that started operating in June 2002, while Putrajaya Shangri-La opened in 2003.

 Pullman Lakeside Putrajaya, which opened in 2008, is managed by French-based Accor group. The five-star hotel, with 281 rooms, currently enjoys 65 per cent room occupancy.

 Its general manager Christophe Keramaris said he is aware that there will be a blooming scene for the hospitality industry, with new hotels opening in Putrajaya. 

The  Mayland group, controlled by Tan Sri David Chiu, is opening the  Dorsett Putrajaya Hotel with 218 rooms later this year. 

 IOI Properties Group Bhd, which owns Palm Garden Hotel and Putrajaya Marriot, is opening Le Méridien Putrajaya next year, while the United States-based Starwood Hotels & Resorts Worldwide Inc will manage the 350-room five-star hotel for the property group.

 Keramaris said the new hotel openings will pose a threat to Pullman Putrajaya and other properties within the vicinity. 

“We are pushing hard on the direct-selling channel through accorhotels.com for more direct bookings to boost the occupancy. We are also collaborating with the Putrajaya Council and corporate companies from Cyberjaya to tap on their shared market,” he said in an interview.

Pullman Lakeside Putrajaya, the five-star hotel with 281 rooms, currently enjoys 65 per cent room occupancy.

100pc take-up for Sunway Iskandar's office suites

By Sharen Kaur
Published in NST on July 24, 2014

JOHOR BARU: Sunway Bhd's Phase 1 office suites at Sunway Iskandar in Johor has achieved a 100 per cent take-up, at an average selling price of RM760 per sq ft.

Called Citrine, it comprises 167 office suites and 51 retail units spanning over 140,000 sq ft.

The office suites, located next to the eight-hectare tranquil Emerald Lake garden within The Lakeview precinct, range between 746 sq ft and 1,671 sq ft.

Citrine also consists of 328 serviced apartments ranging from 618 sq ft to 1,571 sq ft with a price range of RM800 per sq ft (psf) to RM900 psf.

Sarena Cheah, who is the joint managing director of Sunway's property development division for Malaysia and Singapore, said the opening of the Sunway Iskandar sales gallery had bolstered sales.

She said the serviced apartments will be launched next, followed by landed homes ¿ all anchored around Emerald Lake.

With the overwhelming response for the office suites, Sunway has decided to immediately open registration for the priority preview of Citrine's serviced apartments, said Cheah.

"We are very encouraged by the strong response to our first launch as our buyers like our approach in providing a holistic range of products to create a community within The Lakeview precinct: to live, learn, work, shop and play," she said.

Cheah said, Citrine is designed to be a community where residents can enjoy having every convenience of a modern city, including a highspeed broadband connection, while immersing in the beauty of nature.

"As a sustainable community developer, we believe that we are not here just to sell properties, but to coinvest and continue to grow with the community in line with our build, own and manage business model.

To ensure livability and comfort, we are also building our purpose-built Sunway International School," she said.

Sunway Iskandar, located within Medini, is one of the largest township projects on 720ha of land, offering a world-class city balanced with the beauty of nature.

The master plan brings luxurious city lifestyle in nature with spacious homes and more landscaping for all residents to enjoy with a plot ratio of one.

UDA to redevelop Kompleks Niaga

By Sharen Kaur

KUALA LUMPUR: UDA Holdings Bhd will demolish Kompleks Niaga Utama (KNU) in Bangsar, here, and redevelop the site into a luxury residential tower with a gross development value (GDV) of more than RM250 million.

This will be the second residential tower that UDA will develop in Bangsar.

In 2008, UDA launched Gaya Bangsar, which is a 34-storey luxury condominium tower comprising 285 residential units with a RM157 million GDV, next to Dataran Maybank.

The national property development agency sold 95 per cent of Gaya Bangsar within a week of its pre-launch.

The units, ranging from 671 to 1,610 sq ft, were priced between RM350,000 and RM900,000 each.

They were taken up mostly by locals, while expatriates bought less than 10 per cent of the units.

UDA had achieved the Bumiputera sales quota of 40 per cent for the property.

"We plan to demolish KNU and redevelop the site into a luxury residential tower. We are focusing on encouraging Bumiputera ownership in real estate.

"We hope to start the project next year, once all the building plans are approved," said UDA chairman Datuk Johari Abdul Ghani in an interview, here, recently.

There is an urgent need to redevelop KNU because it is aging and will cost UDA more than what it can collect from rentals.

The property has been operating since 1986.

It was initially built as a parking facility, but due to the transfer of squatter settlements, UDA provided 68 shop lots for squatters to do businesses.

Johari said after 28 years, only about 15 lots are still in operations.

UDA charges the traders less than RM3 per sq ft in rent, much lower than KNU's neighbouring towers.

"We are talking to the traders to relocate their businesses, either to Pudu Sentral or Pertama Complex. We have given them notice to move.

"The land is worth around RM27 million and it is not fair for a property that is worth that much to have only around 15 operating traders," Johari said.

KVMRT’s first 4-car trainset to undergo testing

By Sharen Kaur
Published in NST on July 22, 2014

KUALA LUMPUR: THE first set of four-car trains for the Klang Valley MRT (KVMRT) Sungai Buloh-Kajang line will undergo testing and commissioning at the depot in Sungai Buloh, Selangor, in November.

MRT Corp Sdn Bhd has ordered 58 four-car train sets for the Sungai Buloh-Kajang line from the Siemens-SMH Rail consortium through a RM3.36 billion tender that was awarded last year.

The driverless trains are designed by DesignworksUSA, a unit of BMW Group.

China's CSR Puzhen will manufacture 232 units of empty train shells for the consortium.

The Chinese company has so far delivered four units.

MRT Corp strategic communications and public relations director Amir Mahmood Razak said SMH Rail is assembling the first train set at its plant in Rasa, Hulu Selangor, using components that are manufactured locally and regionally.

He said when the trains are ready, they will be moved to the Sungai Buloh depot for testing and commissioning and stored there.

"The schedule is that two empty train shells will arrive every two weeks and we will be receiving the next batch soon," he told Business Times, after MRT Corp's breaking of fast with the media, here, last week.

MRT Corp ordered the train sets based on the ridership forecast from 2017 up to 2026.

The Sungai Buloh-Kajang line will serve 1.2 million people living in Sungai Buloh, Kota Damansara, Dataran Sunway, Bandar Utama, TTDI, Section 16, Pusat Bandar Damansara, KL Sentral, Warisan Merdeka, Bukit Bintang, Pasar Rakyat, Cochrane, Maluri, Cheras and Kajang.

The expected ridership is 442,000 passengers per day, with a frequency of one train every 3.5 minutes during peak hours.

Each set of trains can accommodate up to 1200 passengers, equivalent to 12 buses or around 700 cars.

The trains will travel at maximum speed of 100km per hour while the average speed will be about 40km per hour.

"The fact that we have a full train set undergoing testing and commissioning in the next four months shows how quickly the MRT project is moving," Amir said.

The KVMRT involves the construction of a railway network, which will form the backbone of the Klang Valley's public transport system.

It will be developed in three phases and Line 1 is from Sungai Buloh to Kajang, covering a distance of 51 kilometers, of which 9.5km is underground. It will have 31 stations.

Amir said as at June 30 2014, MRT Corp has completed 45.6 per cent of the total project and the company is on schedule to have it ready by 2017.

‘MRT Line 1 within RM30b budget’

By Sharen Kaur
sharen@mediaprima.com.my

51KM MRT STRETCH: RM23b for systems and construction costs, while RM7b for consultant fees and reimbursables, among others

MASS Rapid Transit Corp Sdn Bhd (MRT Corp) says the total cost to build the Klang Valley MRT (KVMRT) Sungai Buloh-Kajang line, or Line 1, will be within the RM30 billion budget and ready for opening at the end of 2016.

  This confirms Business Times’ report last August that said the 51km line will cost that much.

  Chief executive officer Datuk Wira Azhar Abdul Hamid said RM23 billion is the cost for systems and construction, while RM7 billion includes fees for consultants and reimbursables to the project delivery partner (PDP). The PDP for Line 1 is MMC-Gamuda KVMRT (T) Sdn Bhd.

  Azhar said Line 1, which is now 47.63 per cent completed, will be ready by July 2017 and within budget.

  He said the winning formula of keeping cost within budget has been the awarding of contracts to qualified contractors and suppliers who have been working 24 hours to complete the project fast to avoid cost escalation.

  The first phase from Sungai Buloh to Semantan will open by December 2016, Azhar said at a media briefing, here, yesterday.

  MRT Corp has issued four series of sukuk for Line 1 totalling RM11 billion.

  The company has so far paid out RM8.03 billion to work package contractors and MMC-Gamuda.

  “We have been trying to control cost and we have not spent more than RM8.03 billion of the funds,” Azhar said.

  MRT Corp has, to date, awarded 77 packages out of 85, with a total value of RM21.1 billion. 

  One tender is currently being called while tenders for the remaining seven work packages will be called between now and December.

  “We expect to complete our procurement process by awarding the remaining seven work packages by the end of the year,” he said.

  Business Times reported recently that the first set of four-car trains for Line 1 will undergo testing and commissioning at the depot in Sungai Buloh, Selangor, in November.

  MRT Corp has ordered 58 four-car train sets for Line 1 from the Siemens-SMH Rail consortium through a RM3.36 billion tender that was awarded last year. 

  The driverless trains are designed by DesignworksUSA, a unit of BMW Group.

E&O to focus on London properties

By Sharen Kaur
Published in NST on July 21, 2014

EASTERN & Oriental Bhd’s (E&O) will focus on developing prime residential properties in the United Kingdom as part of its growth strategy abroad.

Deputy managing director Eric Chan Kok Leong said although it owns the luxury heritage Eastern & Oriental Hotel and the beachfront Lone Pine Hotel in Penang, and holds the hospitality management contract for E&O Residences Kuala Lumpur, the immediate focus is to develop apartments in central London, instead of leisurely units.

“At this juncture, the E&O board has approved that our overseas growth engine be focused on central London until such time it feels it is prudent and opportune to expand elsewhere,” he said.

The Penang-based developer ventured into London in 2012 when it acquired Princes House, a prime freehold office-cum-retail building for £20.25 million (RM100.91 million).

Princes House is located along Kingsway, in the prestigious Borough of Westminster, and is E&O’s maiden offshore project.

Constructed in the early 1920s, it is a significant mixed-use building comprising around 4,281 sq m of office and retail space.

  E&O is refurbishing the building into a high-end apartment block with 20 residential units and 34 serviced apartments ranging from 428 sq ft to 2,714 sq ft. 

It expected gross development value (GDV) is RM250 million with prices for each unit averaging £1,800 (RM9,755) per sq ft.

“We ventured into London to extend the E&O property development brand and footprint overseas, and I am glad to say that this maiden endeavour has been successful” said Chan.

“Our launch of Princes House earlier this year was very well received with all units reserved without advertising.”

Besides E&O, other local developers with projects in London include SP Setia Bhd and Sime Darby Bhd, which, together with the Employees Provident Fund, are developing the RM40 billion Battersea Power Station residential project.

IJM Land Bhd, meanwhile, is involved in the development of the Tower Bridge project with a GDV of RM1.5 billion.

E&O is refurbishing Princes House into a high-end apartment block with 20 residential units and 34 serviced apartments. The project has an expected gross development value of RM250 million.

Asian airport job on MAHB’s radar

By Sharen Kaur
sharen@mediaprima.com.my
Published in NST on July 14, 2104

KUALA LUMPUR: Malaysia Airports Holdings Bhd (MAHB) is in talks for a new concession to build and operate an Asian airport as it ramps up its overseas operations.

According to sources close to MAHB, the company is positive of securing the deal within the next six to nine months.

“MAHB is upbeat on this development.

Negotiations are ongoing and it is beyond the preliminary stage,” a source told Business Times after MAHB’s breaking of fast with the media, here, last Friday.

The source could not elaborate on the negotiations due to the sensitivity of the issue.

“Overseas expansion is part of MAHB’s plan to diversify its income stream and it is going beyond borders where there is growth potential,” the source said.

MAHB manages three international airports — Indira Gandhi International Airport in Delhi and Rajiv Gandhi International Airport in Hyderabad (both in India) and Sabiha Goksen International Airport in Istanbul (Turkey).

It recently raised its Sabiha International Airport stake to 60 per cent from 20 per cent.

MAHB also provides airport management services for the Angkor International Airport and Phnom Penh International Airport in Cambodia via a joint-venture arrangement with Aéroports de Paris Management S.A.

The source said MAHB is exploring new opportunities to manage other airports in Asia, including India and the Middle East.

“MAHB is already building up its management capabilities to address these businesses.

Officials have visited these markets to identify suitable investments in the commercial aspect

of things,” the source said.

Based on MAHB’s business strategy 2010- 2014 coded “Runway to Success”, the commercial focus starts with retail and land development, which has been ongoing. The final aspect is overseas ventures, which includes airport management, operations and investment.

MAHB’s integrated strategy is projected to drive financial performance with group earnings before interest, tax, depreciation and amortisation (Ebitda) of RM1.12 billion and return on equity exceeding 10 per cent in fiscal year 2014.

Its projected revenue growth is RM3.19 billion, but MAHB exceeded that last year.

Net profit and revenue for fiscal year 2013 was RM389.1 million and RM4.1 billion, respectively, while Ebitda was RM899.7 million.

Eversendai to get new jobs from Vahana

By Sharen Kaur

Published in NST on July 9, 2014

KUALA LUMPUR: TAN Sri A.K. Nathan's privately-held Vahana Offshore (S) Pte Ltd will award new contracts worth over RM600 million to Eversendai Corp Bhd.

The contracts will be awarded by early next year, he said in an interview, here, recently.

Nathan, who founded Vahana Offshore this year, owns 70.95 per cent of Eversendai, an integrated structural steel turnkey and power plant contractor.

He is awarding the contracts to Eversendai's wholly-owned unit, Eversendai Offshore, via Vahana Offshore, to create a track record and platform for the company to build liftboats and jack-up rigs for the oil and gas (O&G) sector.

The Eversendai group will be the first Malaysian outfit to build these units on its own.

The units will be fabricated at its yard at RAK Maritime City in Ras Al Khaimah, United Arab Emirates.

Last month, Vahana Offshore awarded RM580 million worth of contracts to Eversendai Offshore to build two liftboats, which will be ready in February and May 2016, respectively.

Each liftboat will have four 95-metres truss-type legs with electric drives and pinion jacks that will allow it to jack up to a depth of 70 metres.

"I plan to build two more liftboats, which will have four truss-type legs of over 100 metres and can work to a depth of more than 100 metres. It will also have a larger deck space, and accommodation for over 200 people.

"By virtue of constructing liftboats, we are building a platform for Eversendai to build jack-up rigs. After that we will venture into refurbishment and maintenance of liftboats and jack-up rigs to create recurring income business.

"The business for liftboats is very lucrative and it will inch up our earnings. Jack-ups rigs are a supporting business, which will help grow the company," Nathan said.

On Vahana Offshore, he said the company will eventually own assets in the marine and O&G sectors.

"I am taking the risk to become an owner of these assets and by awarding contracts to Eversendai Offshore to pre-qualify the Ras Al Khaimah yard, creating a track record for the company in the O&G sector.

"My life is all about Eversendai," Nathan said.

KUB to be compensated for Singgahsana closure

By Sharen Kaur
Published in NST on July 9, 2014

KUALA LUMPUR: KUB Malaysia Bhd will be compensated for the closure of Hotel Singgahsana in Petaling Jaya, Selangor, which may be demolished next year to make way for a massive project.

Managing director Datuk Wan Mohd Nor Wan Ahmad said the company will receive compensation for the remaining 10-year concession to operate the hotel.

The cessation of Hotel Singgahsana, or KUB Singgahsana (PJ) Sdn Bhd, which is KUB's 100 per centowned unit, was effective from January 1.

"We will be compensated for the 10 years that we are not able to operate the hotel. The amount is small and we will receive the compensation by the end of this year," he told Business Times after the company's shareholders meeting, here, recently.

Hotel Singgahsana is standing on a 11.6ha government land adjacent to the RM3 billion PJ Sentral project being undertaken by Malaysian Resources Corp Bhd (MRCB).

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

Business Times reported recently that MRCB is targeting the 11.6ha government land under a possible privatisation deal to expand the PJ Sentral project.

Analysts said Hotel Singgahsana's closure will improve KUB's balance sheet.

"We understand that KUB has been losing around RM3 million a year from the hotel operation, dragging down its overall earnings. Now that it is closed for good, KUB will have a bit more in its pocket to count on," they said.

In 2008, KUB did try to cash out from the hotel operation by selling it to Eden Inc Bhd for RM3.5 million. The deal was aborted due to commercial reasons.

Meanwhile, Wan Mohd Nor is confident KUB will double its pretax profit this year as it diversifies and hives off non-core assets.

For its fiscal year 2013, the company posted a pre-tax profit of RM7.5 million and an operating profit of RM7.7 million.

PJD investing in more projects

By Sharen Kaur

Published in NST on July 8, 2014

KUALA LUMPUR: PJ Development Holdings Bhd (PJD), in which veteran stockbroker Tan Sri Ong Leong Huat has a majority stake, is actively scaling up its property investment portfolio to boost recurring income.

The property group is working on seven projects comprising hotels and residences, with gross development value of more than RM1.2 billion.

PJD is building Swiss-Garden Residences Sungai Karang and Damai Laut Sea Villa, both in Kuantan, Pahang; D'Majestic serviced apartments in Kuala Lumpur; Swiss-Inn Johor Bahru; and Swiss-Garden Hotel & Residences Cameron Highlands, which it will wholly own.

It will also operate Swiss-Garden Hotel & Residences Malacca and Pavilion-Garden Suites in Kota Baru, Kelantan, under a management contract for third parties. All the properties, when completed, will be parked under Swiss-Garden International Hotels, Resorts & Inns, the leisure division of PJD.

According to Swiss Garden International general manager, Jimmy Chow, the leisure division will have 3,300 rooms by the middle of next year, 50 per cent more than the current level.

The additional rooms will come with the opening of the properties in Sungai Karang, Pudu, Johor Baru and Malacca within the next six to nine months.

Chow said in the next five years, the division will add 1,500 rooms, bringing the total number of rooms to 4,800.

This is from the opening of Swiss-Garden Hotel & Residences Cameron Highlands, Damai Laut Sea Villa and Pavilion-Garden Suites in Kota Baru.

"We are still in the league and will keep on growing and expanding," Chow told Business Times, in an interview, here, recently.

Swiss Garden International currently owns and operates nine hotels and resorts in Kuala Lumpur, Perak, Pahang, Kedah and Australia.

It also has two such assets under management contracts in Penang.

Chow said all the properties are profitable and contributing positively to the earnings of PJD.

For the nine months to March 31 this year, PJD recorded a net profit of RM75.86 million on revenue of RM705.5 million.

The leisure division recorded a net profit of RM10.45 million on revenue of RM93.96 million.

ERLSB eyes listing if it wins HSR project

By Sharen Kaur
Published in NST on July 2, 2014

KUALA LUMPUR: Express Rail Link Sdn Bhd (ERLSB) will look to raise funds, including a listing on Bursa Malaysia, if it lands the proposed Kuala Lumpur-Singapore high-speed rail (HSR) project.

The company, which is majority-controlled by YTL Corp Bhd, is hoping to expand on back of the project, says its chief operating officer Noormah Mohd Nor.

"We are interested to build HSR as we have the expertise. Once the government or the Land Public Transport Commission come out with the tenders, we will bid for it.

"As for listing, we don't have any plans now. We will look into an initial public offering to fund the construction of the HSR project, if we get it," she said recently.

ERLSB operates the KLIA Ekspres and KLIA Transit train services from KL Sentral in Brickfields to the Kuala Lumpur International Airport (KLIA) and Kuala Lumpur International Airport 2 (klia2) in Sepang.

The company won a 30-year concession in August 1997 to finance, build, maintain and control the express rail link (ERL) operations.

It recently extended the ERL line from KLIA to klia2 at a cost of RM100 million.

Noormah said ERLSB is looking at expansion to enhance its earnings.

Business Times recently reported that the company plans to extend the ERL service from KLIA to Seremban and Malacca.

The ERL line, which is served by 12 four-car train sets, is expected to carry 8.4 million passengers this year between KL Sentral and the airports, and 10 million next year.

Analysts said annual passenger numbers may double if the line is extended to Malacca.

"The numbers would get bigger with the HSR line taking shape in 2020," they said.

Redevelopment of BB Plaza to create RM3b GDV

By Sharen Kaur
sharen@mediaprima.com.my
Published in NST on July 7, 2014

THE redevelopment of Bukit Bintang Plaza (BB Plaza), here, will comprise a 60-storey luxury condominium atop a three-level mall, which will generate around RM3 billion in gross development value.

The redevelopment will be incorporated with an underground mass rapid transit (MRT) station that is currently under construction, said UDA Holdings chairman Datuk Johari Abdul Ghani.

A joint-venture company, set up by UDA Holdings and Tan Sri Syed Mokhtar Albukhary-controlled Tradewinds (M) Bhd, is undertaking the redevelopment work.

Johari said Mohamed Ali Alabbar, who is the chairman of Tradewinds International Sdn Bhd and Dubai-based Emaar group, the Middle East’s premier property developer, will head the joint venture.

Mohamed Ali Alabbar is the man behind prodigious projects such as the Burj Khalifa, the world’s tallest building, and The Dubai Mall, the world’s largest shopping and entertainment destination.

He has played a pivotal role in positioning Dubai as the world-class city.

“We will capitalise on his experience and how he has developed downtown Dubai. We must bring in experts... we can’t employ them, but we can bring them in as our partners to sell the products,” Johari said in an interview recently.

The iconic BB Plaza, which has been a vital asset for UDA Holdings for more than three decades, is being redeveloped to make way for the MRT station and to blend in with the transformation of Jalan Bukit Bintang.

Jalan Bukit Bintang is bracing itself for a major transformation where many of its aging buildings are revamping their looks to attract new investors and tenants.

The 37-year-old Sungai Wang Plaza, Yayasan Selangor building, the Lot 10 shopping centre and the Plaza Low Yat, have either started or are in the midst of planning a refurbishment.

The Yayasan Selangor building, which is currently vacant, will be transformed into a boutique hotel and linked to the MRT station.

Johari said works to demolish the 35-storey BB Plaza are expected to commence by the middle of next year.

“There are still tenants operating in the mall. Once we are able
to negotiate with all of them 
to move out and also when the building plans are approved, we will demolish the structure,” he said.

UDA Holdings chairman Datuk Johari Abdul Ghani says works to demolish the 35-storey BB Plaza are expected to commence by the middle of next year. Pic by Farizul Hafiz Awang

Eversendai plans more liftboats, rigs

By Sharen Kaur
sharen@mediaprima.com.my
Published in NST on July 3, 2014

KUALA LUMPUR: Eversendai Corp Bhd is scaling up its oil and gas (O&G) venture by building more liftboats and jack-up rigs to bolster revenue and profit.

Eversendai Corp executive chairman and group managing director Tan Sri A.K. Nathan said this will lead to a move into the refurbishment and maintenance of O&G assets business and ensure recurring income.

Nathan is upbeat that by 2017, its O&G business will contribute 50 per cent to its income and help it achieve the RM2 billion revenue target. The rest will come from its structural steel and power-plant businesses.

“I want to move towards becoming a good dividend-paying company, which is why I’m building up Eversendai. The market for liftboats and jack-up rigs is huge and it is a global business,” he said recently.

Last month, Eversendai won a RM580 million contract to build two liftboats from Vahana Offshore (S) Pte Ltd, a company wholly-owned by Nathan.

The contract represents the first venture into the offshore O&G market via its wholly-owned unit Eversendai Offshore RMC FZE, which builds, upgrades and refurbishes jack-up rigs and floating production, storage and offloading systems.

Eversendai is also the first Malaysian company to build its own liftboats and jack-up rigs soon.

Local and international O&G companies currently buy these assets from foreign firms in Europe and Asia, including Singapore.

The liftboats will be built at its fabrication yard at RAK Maritime City in Ras Al Khaimah, United Arab Emirates.

Named Aryan and Arjun, each will have a rectangular hull and four 95m truss-type legs with electric drives and pinion jacks that will allow it to jack up to a depth of 70m. There will also be a 300-tonne crane, accommodation for up to 150 operatives and dynamic positioning systems.

“Eversendai has built all types of complex steel structures since 1980s and in 2000, we moved into mechanical erection work for power plants. When I look at topsides in the O&G sector, I see steel structures and mechanical erection works, thus I know Eversendai can also execute that.

“Based on that, I decided to move into upstream and downstream O&G activities and bid for contracts in Europe, the Middle East and Asia. I have worked tirelessly for the last two years to build this business segment and expand the company,” Nathan said.

Of the two liftboats, he said the hull and jackup legs are made of steel, and Eversendai has the expertise and capability to execute that based on tolerance.

“What we need is the propel, control and jacking systems. This is a specialised area and we are contracting that out to specialist companies,” he added.

Property mart has ‘structural’ issues

By Sharen Kaur
Published in NST on July 1, 2014

THE local property market has “deep” structural problems and it will come under more pressure as cooling measures continue to take effect.
Bukit Kiara Properties group managing director Datuk NK Tong said there is severe asset inflation everywhere because of the synchronised global monetary inflation.
He said cooling measures by Bank Negara Malaysia may affect the efforts to keep house prices low in the long run. 
“Malaysia has a growing population. When cooling measures are applied, the production of housing stock slows down because sales are depressed. This creates a shortage of housing, and by default, the demand for housing too,” he said in an interview.
Tong said the key to keeping house prices affordable, aside from stopping the global monetary inflation, is to ensure an adequate supply of new housing and making land affordable.
“The government should release large tracts of government land for affordable housing, failing which, the problem will not be solved,” he said.
Tong said, high household debt is another concern that is plaguing the local property market.
“Malaysia’s household debt is at 87 per cent. But if we drill down into those numbers, a significant proportion of this debt is in unproductive and depreciating asset classes, namely car loans, personal loans and credit card loans.
“These loans are a real burden to the rakyat as not only are the assets that were purchased with these loans depreciating extremely fast, but also often the interest rates are very high.
“The government should look at applying cooling measures in these categories to stop the pain and destruction of wealth that the rakyat are facing.
“By contrast, while housing loans may be larger, these loans, in the long run, do not burden the rakyat because the interest rates are low and reasonable, and better yet, the properties appreciate in the long run, and not depreciate,” he said.
On the Goods and Services Tax (GST), which will be implemented next year, Tong said it is still too early to speculate on the exact effects of GST in general and on the housing market in particular.
“However, a recent example in Japan could be a good indicator. I am told that their first quarter gross domestic product was high because of the rush ahead of the GST hike in April this year.”

MRT Corp seeks speedy Line 2 decision

By Sharen Kaur
sharen@mediaprima.com.my
Published in NST on July 1, 2014

KUALA LUMPUR: Mass Rapid Transit Corp Sdn Bhd (MRT Corp) hopes a decision on Line 2 of the Klang Valley Mass Rapid Transit (KVMRT) project will be made soon as it wants to immediately deploy resources to it from Line 1, which is more than 40 per cent completed.
“We hope that a decision on Line 2 will be made soon so that we can deploy the learning curve and resources from Line 1 and not waste them. The faster Line 2 starts the better, as Line 1 is progressing well.
“The ball is in the MOF’s (Ministry of Finance) court,” said MRT Corp chief executive officer Datuk Azhar Abdul Hamid.
According to Azhar, 45.59 per cent of Line 1 has been completed as at May 31.
He said seven more contracts worth slightly below RM1 billion will be given out this year, bringing the total value of jobs awarded to RM23 billion.
MMC-Gamuda JV — a 50:50 joint venture between Gamuda Bhd and MMC Corp Bhd — was appointed as the project delivery partner (PDP) for Line 1 in January 2011. It also won the RM8.2 billion tunnelling job.
As a PDP, it will receive a six per cent fee of Line 1’s total contract value. Should the total cost of the project be less than or equal to the targeted cost, the PDP will be entitled to the full fee. However, if the project cost is more than the targeted cost, the fee will be cut in accordance with the agreed formula.
A PDP’s top priority is to ensure the successful completion of mass rapid transit lines within the pre-determined target cost and date.
In the event a contractor or a sub-contractor does not meet the pre-determined work package requirements, the PDP will step in at no risk to project delivery cost and time.
On Line 2, Azhar said it will also be implemented based on the PDP concept and opened to the private sector.
“The government has said Line 2 will be done based on a PDP concept and it is its call on who it wants,” he told Business Times.
MRT Corp is the implementation agency and asset owner of the KVMRT, which comprises three lines estimated to cost around RM80 billion.
Line 1, which is under construction, is from Sungai Buloh to Kajang.
Line 2 will comprise the north-south line from Selayang to Putrajaya, while Line 3 is the circle line that will loop around the Kuala Lumpur city centre.
It is understood that the Land Public Transport Commission has completed the alignment feasibility study for Line 2 and it is currently being reviewed by the MOF.