Scomi to bid for RM15b worth of deals

By Sharen Kaur

KUALA LUMPUR: Scomi Engineering Bhd will bid for new monorail jobs in Asia and South America where tenders for projects worth around RM15 billion are expected to be called over the next 18 months.
 
  It is already bidding for monorail projects in Thailand, Turkey, India and Indonesia with a tender book worth RM2 billion.
 
  Scomi group chief executive officer Kanesan Veluppillai is upbeat on its prospects.
 
  "There are a few tenders that will be out this year and we will go in with our partners. They include a new monorail project in Rio ( Brazil), one each in West Bengal and Chennai (India), and one in Bangkok.
 
  Turkey will also call for one or two tenders.
 
  "The fact that Scomi has delivered two systems, one for the Mumbai monorail system in India and another for the KL Monorail fleet expansion, augurs well for the company to take on new jobs," he told Business Times.
 
  Scomi, a unit of Scomi Group Bhd, has five monorail projects in hand worth RM1.6 billion that will be carried out until 2019.
 
  It is understood that the potential market size for Asia and South America's monorail tenders over the next 10 years is USD$45 billion (RM161 billion).
 
  There are a few projects proposed in Brazil, Taiwan, Turkey (has eight lines), Thailand (shortlisted four lines in Bangkok), and Indonesia (lines planned in Surabaya, Palembang and Jakarta). Sri Lanka has also earmarked and approved the alignment for a massive monorail project in Colombo.
 
  All these projects are worth about USD20 billion.
 
  In India, the value of new monorail projects is around USD25 billion.
 
  Scomi is one of three global major monorail contenders.
 
  These companies have monorail technology that poses a high barrier of entry for new companies to compete in the industry.
 
  This means that there is a good chance for Scomi to land one-third of the USD45 billion worth of new monorail jobs.
 
  In 2008 and 2012, Scomi won three of the seven monorail projects tendered worldwide.
 
  With its Indian partner Larsen and Toubro Ltd, it won the RM1.85 billion Mumbai monorail project in 2008, and two jobs in Brazil worth a combined RM5.6 billion in 2012.

Bukit Bintang City Centre project scales new heights

By Sharen Kaur

KUALA LUMPUR: ALMOST a year after an official announcement to redevelop the former Pudu Jail, a consortium known as BBCC Development (BBCCD) Sdn Bhd has been formed to turn the 7.85ha site into a masterpiece called Bukit Bintang City Centre (BBCC).
 
  The BBCCD shareholders comprise UDA Holdings Bhd and Eco World Development Group Bhd with a 40 per cent stake each, and the Employees Provident Fund (EPF) with the rest.
 
  The market is quite positive on BBCC, as it is with the Battersea Power Station regeneration project in the United Kingdom, where SP Setia Bhd is a partner.
 
  The key players behind SP Setia, led by Tan Sri Liew Kee Sin, are now with Eco World.
 
  UDA, being the landowner, invited Eco World last June to be part of the RM8 billion redevelopment project due to the expertise of the latter's key personnel, who were involved in the Battersea project when they were with SP Setia.
 
  The "Liew factor" has somehow become an important element in any redevelopment project, be it in Klang, Semenyih or, in this case, the site of the former Pudu Jail.
 
  BBCCD is now focused on selling residential and commercial units on a site with a colourful history.
 
  Pudu Jail was built in phases by the British colonial government between 1891 and 1895 on the site of a former Chinese burial ground. During World War 2, the Japanese occupation forces incarcerated many Allied prisoners of war there.
 
  The prison complex was closed in 1996 and demolished in 2010.
 
  Liew, who is Eco World non-executive director, is bullish on BBCC's prospects.
 
  He expects a strong take-up rate for the 2,700 apartment units to be sold in phases starting early next year, as well as leasing of the office space.
 
  He believes there will be no negativity attached to the project despite the site having been abandoned for many years.
 
  "Obviously, we are going to 'cleanse' the place before we start any work. Nevertheless, this will be a great landmark project in Kuala Lumpur. The location is strategic and there is great connectivity. There will be interesting concepts and ideas," he told Property Times after the signing of a joint-development agreement between UDA, Eco World and EPF recently.
 
  BBCC will include an 88-storey signature tower (encompassing serviced apartments, hotel and office space), three apartment towers, and a 40-level strata office building.
 
  The project will also have a transport hub complementing Pudu Sentral (formerly Puduraya Terminal), which is operated by UDA. The transport hub will provide monorail and light rail transit services.
 
  It is already off to a good start, having attracted the interest of investors from Europe, Japan and China.
 
  BBCCD has so far inked agreements with Japan's real estate conglomerate Mitsui Fudosan (Asia) Pte Ltd and Sony Music Entertainment (Japan) Inc's unit Zepp Hall Network Inc.
 
  The deal with Mitsui is to co-develop the 1.2 million sq ft lifestyle mall that will feature a Malaysian Grand Bazaar, food and beverage outlets, and entertainment components that include a 2,500-capacity live event hall.
 
  Zepp will help manage the hall. UDA chairman Datuk Johari Abdul Ghani said the system for the live event hall alone would cost RM100 million.
 
  He said the next step would be to look for investors in the hotel component.
 
  "It is UDA's hope that the BBCC initiative will be similar to the high-profile Battersea project, with its bold brand presence, coupled with proven financial capacity," Johari said.
 
  En bloc deal talks with foreign investors
 
  BBCC Development Sdn Bhd (BBCCD) is in talks with investors in Asia and Europe, including London property buyers, for potential en bloc deals in the Bukit Bintang City Centre (BBCC) project.
 
  Eco World Development Group Bhd executive vice-president for strategic projects, Datuk Richard Ong Kek Seng, said marketing for the RM8 billion BBCC has commenced and he is upbeat on sales and progress of the development.
 
  "We are talking to many foreign parties for the sale of apartments and some corporate suites in BBCC," he told Property Times in an interview, here, recently.
 
  Three apartment towers and a 40-storey strata office building will be built on the field adjacent to the former Pudu Jail complex, which was demolished in 2010.
 
  The site will see the development of a 1.2 million sq m mall, an 88-storey signature tower, and food and beverage outlets.
 
  He said BBCCD would retain the mall while UDA, which is the landowner, will acquire some of the strata offices for investment or its own use.
 
  Ong said one third of the signature tower will comprise corporate suites, while another 25 floors will house a fiveor six-star hotel.
 
  "Above the hotel, we will have 21 floors of serviced apartments. The selling price will be from RM2,000 per sq ft. For the 2,700 units of apartments, we expect to start selling them from RM1,400 psf," he said.
 
  Ong said BBCCD was targeting local investors as well as those from Singapore, Hong Kong, Indonesia, and Europe for the apartments.
 
  For hotel management and operation, the company is talking to a Europe-based operator.
 
  "We target to secure the approval for development order for the project within six months. Tenders for infrastructure work and to build the mall, strata office building and one apartment tower will be called in the third quarter. Work is envisaged to start in the fourth quarter," Ong said.

KTMB aims to break even this year

By Sharen Kaur

KUALA LUMPUR: KERETAPI Tanah Melayu Bhd (KTMB) aims to break even this year but that may be a challenge, given that its current operational cost is around RM600 million and revenues are two thirds of that.
 
  According to chairman Datuk Nawawi Ahmad, KTMB needs revenue of RM650 million to RM700 million in order to break even.
 
  "My intention is that by the end of this year, KMTB should be able to break even. We have three quarters left to achieve the target.
 
  "The current focus is to grow our non-fare revenue from below five per cent to 40 per cent in the next five to 10 years.
 
  "Most rail operators in Asia, especially in Japan, Hong Kong and Taiwan, depend on non-fare business to survive. This segment contributes 40 per cent to their yearly revenue and we are looking at the same business model.
 
  "We are in discussion with the Transport Ministry to increase advertisement revenue. For our fibre optic business, we are getting a few million ringgit a year in revenue and there are plans to expand this business further," he said, here, recently.
 
  KTMB has established the framework for a transformation in its bid to be the preferred transporter of goods and people.
 
  Its primary focus will be on commuter, intercity Electric Train Services, cargo and non-fare businesses.
 
  Nawawi said with the objective to analyse the current state of KTMB's profitability, a thorough profit and loss (P&L) analysis was carried out on the company's each business unit.
 
  He said the commuter P&L showed that all trips between Batu Caves and Port Klang, Rawang to Sungai Gadut, and Rawang to Tanjung Malim were making losses amounting to RM82 million a year.
 
  The intercity P&L showed that all trips for the three routes (east bound, north bound and south bound) are running at a loss amounting to RM110 million.
 
  The cargo P&L, meanwhile, indicated that 25 out of 55 trips were making losses totalling RM36.5 million.
 
  "We want to grow revenue by increasing ridership and cargo tonnage, raise fares and generate more income from non-fare components.
 
  In terms of reducing expenditure, we want to eliminate cost due to delay and derailment, optimise network to ensure maximising revenue by reviewing the P&L analysis by routes and rightsizing the organisation to ensure productivity.
 
  "The other focus would be to ensure services are safe and reliable by making sure infrastructure is properly maintained and able to meet the demand of the public," he said.
 
  Nawawi said while cargo was profitable, he expects commuters to make profit next year upon implementing the planned strategies.
 
  He hopes that the government will raise commuter and passenger fares by at least 50 per cent this year.
 
  Since KTMB's corporatisation in 1992, its audited collective revenue as of December 31 2013 was RM7.4 billion.
 
  However, during the same period, KTMB recorded collective losses amounting to RM2.5 billion.
 
  Its operating revenue of RM137.80 million in 2013 was lower than its RM550.70 million operating cost, mainly because of low ridership, tonnage, tariff and charge rate.
 
  Last year, KTMB recorded a revenue of RM370 million while losses were around RM80 million.
 
  "If the government raises passenger and commuter tariff, we will be able to grow our cargo volume, KTMB is poised to break even this year with all the plans that we have put in place, including lowering operational cost," he said.

Syed Mokhtar-led ports in cargo talks with KTMB

By Sharen Kaur

KUALA LUMPUR: Ports controlled by Tan Sri Syed Mokhtar Albukhary are talking to Keretapi Tanah Melayu Bhd (KTMB) to expand their logistics operations by rail in a bid to reduce dependency on road, water and air transport, amid the current market challenges.
 
  It is understood that the parties are in discussions to transport cargo.
 
  "They are looking at cheaper alternatives to move their cargo.  KTMB covers 1,600km of rail track across Peninsular Malaysia and some stations are close to the ports.
 
  "The port operators are also looking at the double-tracking system, which the government spent more than RM20 billion to develop. Movement by rail on the double tracks would be faster, cheaper and more reliable," said a source.
 
  Syed Mokhtar, who according to Forbes has an estimated net worth of USD2.9 billion (RM10.7 billion), owns Port of Tanjung Pelepas (PTP) and Johor Port via MMC Corp Bhd.
 
  He also controls Penang Port Sdn Bhd (PPSB) and has a stake in NCB Holdings Bhd, the owner of Northport, which operates a container terminal in Port Klang.
 
  NCB also owns Malaysia's largest haulage company, Kontena Nasional Sdn Bhd.
 
  KTMB chairman Datuk Nawawi Ahmad confirmed that the company was in talks with the port operators.
 
  He hoped to ink several deals with them soon to increase the company's freight revenue.
 
  KTMB is aiming to achieve RM650 million to RM700 million revenue this year in order to break even.
 
  Last year, it recorded a revenue of RM370 million while losses were around RM80 million. Cargo revenue alone was about RM200 million.
 
  "The port operators are keen on connectivity. It is a prudent call since the ports are located in the southern and northern states and we have more than 100 stations to accommodate their requests.
 
  "We are hoping that through this deal, our cargo revenue can triple to around RM600 million. We can transport almost one million 20-foot equivalent units (TEUs) per annum for a start. We understand that the port operators are looking at transporting more than six million TEUs annually by rail alone.
 
  "It will be a win-win situation for both KTMB and the Syed Mokhtar-led companies. We just want to make sure that revenue is higher than the cost per TEU per km. Currently, it is the other way round," Nawawi told Business Times.
 
  PTP handles more than six million TEUs a year while Penang Port handles more than one million TEUs.
 
  On another matter, Nawawi said Syed Mokhtar was not keen to take over KTMB but wanted to collaborate in terms of moving cargo.
 
  "He is not buying KTMB but wants to cooperate with us." Business Times had reported that MMC was undertaking due diligence on KTMB in early 2012, with a view of taking over the ailing rail operator.
 
  KTMB operates the national railway line while the rail assets and land are owned by a separate entity, the Railway Assets Corporation.
 
  In total, the assets and land are estimated to be worth RM50 billion.

New Malaysian Airlines firm on track to return to black in 3 years

By Sharen Kaur

KUALA LUMPUR: Malaysia Airlines Bhd (MAB), the new company arising from the restructuring of Malaysia Airlines (MAS), is off to a good start as several key messages delivered at a recent townhall meeting indicate that it will be on track to deliver profits in three years.
 
  Key officials at the townhall meeting, who had discussed major shareholder Khazanah Nasional Bhd's MAS Recovery Plan, touched on the progress of the provisional business plan and operational transformation.
 
  Sources said the provisional business plan, which was in progress, included a review of the end-to-end processes, people requirement, tools and systems.
 
  "The provisional vision of MAB is to be the leading airline in Kuala Lumpur that offers a network, products and services, and price proposition that the customers will value.
 
  The network will focus on key markets, which include domestic, Asean and regional, matching it to the fleet requirement.
 
  "It is expected that there will be a 10 per cent reduction this year in terms of capacity and some routes in Europe will be affected. There will be plans on how to connect passengers to the affected routes," a source told Business Times.
 
  Khazanah announced last week that the restructuring of MAS was showing steady progress for the company to return to sustained profitability.
 
  The restructuring of MAS involves a "complete overhaul".
 
  This entails the transformation of MAS' corporate structure, financial position, operating performance and human capital management, guided throughout by the principles of fairness, transparency and compassion.
 
  Critical milestones achieved so far include a 25 per cent reduction on monthly bills to MAS, and RM1.38 billion that was disbursed to shareholders pursuant to the successful selective capital reduction and repayment exercise, as part of the first phase of conditional investment funding amounting to RM2 billion.
 
  According to key MAS officials, products and services for MAB are being reviewed in order to avoid overlapping with the business models of low-cost carriers in Malaysia.
 
  "The plan is to adopt a product bundling strategy so that there is no overlapping of business and redundancy in operations," said an official.
 
  He said for people requirement, there was an ongoing talent review programme, which would take into consideration several points to assess internal talent.
 
  These include personal data, performance and disciplinary record (where applicable), experience, periodic technical accreditation and aspiration to join MAB.
 
  The official said the selection or matching would be done by its board restructuring committee and global human resource management firm Hay group.
 
  "Ultimately, it has to be agreed by MAB chief executive officer-designate Christoph Mueller. Nothing is final until the staff receive official letters from the company.
 
  "Terms and conditions of MAB have to be sustainable for the business and aligned to market.
 
  "Guiding principles to establish the terms and conditions include fresh start, performance and productivity-driven rewards, compensation to be benchmarked versus market and best practices," added the source.
 
  On operational transformation, he said MAB would look at three key areas - frontline, back office and subsidiaries.
 
  "This is done in order to have the right manpower size with competitive terms and conditions.
 
  "Processes and systems will be redesigned aggressively and there will also be a reduction in cost structure for short-hauls.
 
  "The other focus will be to centralise shared functions in a bid to lower operational cost," he said.

Robert Kuok still the wealthiest

By Sharen Kaur
Published in NST on March 18, 2015

KUALA LUMPUR: TAN Sri Mokhzani Mahathir, the former vice-chairman of SapuraKencana Petroleum Bhd, and businessman Tan Sri Syed Mokhtar Albukhary slipped in the country's wealthiest ranking list after both saw their wealth reduced by more than half.
 
  Syed Mokhtar, the richest Bumiputera on the list, saw his wealth fall from RM11.07 billion to RM5.23 billion, pushing him two spots down to 8th place.
 
  According to Malaysian Business, which unveiled its annual list of the country's 40 richest people, his wealth dipped as he had taken five of his companies private in the past year.
 
  Mokhzani, the second son of former prime minister Tun Dr Mahathir Mohamad, and one of the founders of SapuraKencana, fell out of the top 10 to number 29 after his wealth dropped to RM1.54 billion.
 
  He resigned recently from SapuraKencana, which will now be led by its chief executive officer, Tan Sri Shahril Shamsuddin, who was ranked as the country's 25th richest, with a net worth of RM1.91 billion.
 
  Shahril's father, Tan Sri Shamsuddin Abdul Kadir of Sapura Group, was ranked 11th on the list with a wealth of RM4.44 billion.
 
  Shamsudin is among five billionaires who returned to the list this year.
 
  The others are Tan Sri Danny Tan Chee Seng of Tropicana Corp Bhd, Tan Sri Desmond Lim of Pavilion REIT, and YTL Corp Bhd's Datuk Yeoh Soo Keng and Datuk Yeoh Soo Min.
 
  There are three new faces in the top 10 list and they are Sabahborn Ong Beng Seng, Rimbunan Hijau's Tan Sri Tiong Hiew King and Tan Sri Panglima Lau Cho Kun of Hap Seng Group.
 
  Ong, the founder of Singapore's Hotel Properties Ltd, jumped to seventh spot from 12th. He is worth RM6.63 billion this year, nearly double that of last year's RM3.53 billion.
 
  Tiong (RM5.1 billion) and Lau (RM4.9 billion) finished at ninth and 10th spots, respectively, up from 11 and 14 a year ago.
 
  Hong Kong-based Robert Kuok Hock Nien, via his flagships Kerry Group and Kuok Group, remains the wealthiest tycoon this year. His wealth, however, fell to RM41.35 billion from RM54.48 billion last year.
 
  Telecommunications tycoon T. Ananda Krishnan maintained his second position for the 11th year running, with his assets held via Usaha Tegas Sdn Bhd worth RM35.5 billion.
 
  Third on the list is Genting Bhd chairman and chief executive Tan Sri Lim Kok Thai, who jumped from seventh position last year, with a wealth of RM25.35 billion.
 
  Banker Tan Sri Quek Leng Chan of Hong Leong Group maintained his fourth position with assets worth RM20.42 billion.
 
  Public Bank Bhd's Tan Sri Teh Hong Piow dropped two rungs to fifth position. His wealth, however, increased from RM18.06 billion last year to RM18.17 billion.
 
  IOI Group's Tan Sri Lee Shin Cheng took the sixth spot with RM13.45 billion in wealth.
 
  The combined wealth of the 40 richest Malaysians, which is based on the value of their stakes in listed firms, grew 6.2 per cent this year to RM236.56 billion, thanks to steady economic growth in the first three quarters of last year.
 
  The monthly business magazine, however, feels that things could be tougher for many of these billionaires and millionaires this year.

`Weststar Aviation listing plan still on

By Sharen Kaur

KUALA LUMPUR: The listing of Weststar Aviation Services Sdn Bhd to raise RM1.5 billion for global expansion is still on, albeit a slight delay in view of the current oil prices, said founder Tan Sri Syed Azman Syed Ibrahim.
 
  Syed Azman, popularly known as the "AP King", told Business Times he has no qualms about listing the company this year but the current oil price, which is hovering around USD43 (RM159) per barrel, is slowing down business in the oil and gas (O&G) sector.
 
  Weststar Aviation, a unit of the Weststar Group, provides offshore helicopter transport for O&G firms. It is the largest helicopter operator in Southeast Asia, with operations in Malaysia, Thailand and Morocco.
 
  It operates 37 helicopters and has an order book of around RM10 billion.
 
  Its sister company, Weststar General Aviation Sdn Bhd, operates six helicopters, mainly for general charter and use by various industries, which includes media and timber, and government agencies.
 
  Business Times on Tuesday reported that Weststar Aviation, partly owned by United States private equity firm KKR, is reviewing its listing plan because of the low oil price and market uncertainties.
 
  The company is looking at an initial public offering (IPO) in the third or fourth quarter of this year.
 
  "We do not have any issues with our business. We are cash-flow positive.
 
  Our IPO is mainly for our global expansion and to pare down debt, which is at around RM1 billion. But with the current market conditions and weak oil price, it will be difficult to launch an IPO and to expand.
 
  "Of course our business has nothing to do with the oil price as we provide services. We are in the business of moving people to and from oil rigs, sometimes involving more than 200km. If our clients are not drilling new fields or increasing their production, there won't be any business for us.
 
  "The market is weak at the moment, which is why we are not going for an IPO now. It is wrong timing.
 
  "Many other companies have also deferred their listing plans. Perhaps everyone is waiting to see how the market is going to react when Malakoff (Corp Bhd) goes for listing this year. Our IPO plan is still on, it is just a matter of timing," he added.
 
  Weststar Aviation is currently valued at about RM4 billion.
 
  Syed Azman said the company had tendered for new jobs globally, valued at more than USD200 million (RM740 million), with the focus on Indonesia and Africa.

Liew remains focused on Battersea project

By Sharen Kaur

KUALA LUMPUR: Tan Sri Liew Kee Sin will remain focused on the Battersea Power station redevelopment in the United Kingdom, despite starting three new projects in London via his private vehicle.
 
  Liew said his love for the STG10 billion (RM54.8 billion) Battersea redevelopment is just as strong as his admiration for Eco World Ballymore Holding Co Ltd (Eco World-Ballymore), the company which owns the three London projects with a gross development value of STG2.3 billion.
 
  EcoWorld-Ballymore plans to launch up to STG1.2 billion London properties between May and December this year, and the rest, from next year.
 
  The company is 75 per cent-controlled by Eco World Investment Co Ltd (EWI), a private vehicle owned by Liew and his right-hand man Datuk Voon Tin Yow, and 25 per cent by UK-based Ballymore Group.
 
  "Battersea and the EcoWorld-Ballymore projects are good developments. I love Battersea ... it is my life. I, myself, have invested in several units there and will do my best for the Battersea project," he said.
 
  Liew is the chairman of the board for Battersea Project Holding Co Ltd (BPHCL), the firm which is undertaking the Battersea redevelopment.
 
  He will be stepping down this September to focus on his private ventures and also Eco World Development Group Bhd, where he was recently appointed chairman.
 
  On whether EcoWorld-Ballymore or the listed Eco World may replicate the Battersea project, Liew said a development of such scale and type would not be easy while it also depends on the company's balance sheet.
 
  "We are not SP Setia, Sime Darby or EPF that are financial power houses. Our focus is on affordable quick turnaround projects," he said, at the launch of EcoWorld International Centre, here, yesterday.
 
  The one-stop centre, located at The Gardens North Tower in Mid Valley City, is set up to facilitate Eco World's international launches with focus on the three London projects, namely London City Island, Wardian @ Canary Wharf and Embassy Gardens, as well as a A$300 million (RM861 million) residential project in Sydney, Australia.
 
  Meanwhile, Liew hopes to list Eco World International (EWI) Bhd on Bursa Malaysia in the third quarter of this year.
 
  EWI will be the first property-focused special purpose acquisition company to be listed on the local bourse. It will have assets in hand worth RM13.3 billion - the London projects and development in Sydney.
 
  "This is not a blank cheque initial public offering (IPO). It will be listed with property assets. We are awaiting the outcome of the IPO application to the Securities Commission.
 
  We will add more international projects to EWI, as we move forward and the focus will still be in London and Australia," he said.

Maldives is back on, tweets Fernandes

By Sharen Kaur

KUALA LUMPUR: AirAsia Bhd may take over AirAsia X Bhd's (AAX) axed route to Male, Maldives, and provide services to the destination starting next month.
 
  On Tuesday, AirAsia group chief executive officer Tan Sri Tony Fernandes tweeted that Maldives is back on, and that the airline will start selling in two weeks.
 
  According to Fernandes, AirAsia is giving away two free tickets to travel to the destination.
 
  However, AirAsia has not issued any official statements regarding Fernandes' tweet.
 
  Fernandes was also not available for comment at press time.
 
  AAX, the long-haul, low-fare affiliate of the AirAsia group, suspended its services to Male, effective March 1 2014 due to the challenging business conditions.
 
  The airline started its operation to Maldives with its A330-300 aircraft landing at Ibrahim Nasir International Airport on September 28 2013.
 
  It operated four weekly flights on Kuala Lumpur-Male-Colombo-Kuala Lumpur route and on Kuala Lumpur-Colombo-Male-Kuala Lumpur route.
 
  Despite efforts by AAX to sustain the services, external factors, such as the depreciation of Asian currencies against the US dollar and lack of hotel room supply in Maldives, resulted in cancellation of thousands of bookings by travel operators.
 
  Sources close to AirAsia said that it is targeting Maldives as part of its growth strategy and capturing the growing tourism market there.
 
  The Maldives received close to 1.4 million tourists last year, about 7.1 per cent more than in 2013. Majority of the tourists arrived from Europe and Asia, led by China.
 
  The source said AirAsia may fly to Maldives from Klia2, Penang or Langkawi.
 
  AirAsia recently announced Langkawi as its latest international hub.
 
  Fernandes had said that AirAsia plans to put five planes in Langkawi and generate up to 1.5 million passengers from the island, with focus on Asean destinations and gradually expanding the connectivity to China and India.

KWAP buys tower for RM1.07b

By Sharen Kaur

KUALA LUMPUR: Retirement Fund Inc (KWAP) has acquired its first asset here for RM1.07 billion and is buying more properties.
 
  Chief executive officer Wan Kamaruzaman Wan Ahmad said KWAP would be allocating between six and eight per cent of its fund for investment in domestic and international property markets.
 
  KWAP, which was incorporated in 2007 and is the country's second largest pension fund, has a total fund size of RM99.92 billion as at December 31 2013, versus RM61.5 billion in 2009. Its fund size has grown by an average 13 per cent per annum.
 
  KWAP's maiden acquisition in Malaysia is the RM1.07 billion Integra Tower, which is located at the intersection of two of the most active commercial spines here - Jalan Ampang and Jalan Tun Razak.
 
  The tower, which was completed in 2012, was acquired from a private real estate fund managed by Black-Rock.
 
  The 39-storey Grade A office building with LEED Platinum certification forms part of The Intermark that comprises Vista Tower, Double Tree by Hilton and Intermark Mall. Integra Tower, with net lettable area of 70,673 square metres and 850 parking bays, will provide a six per cent yield to KWAP.
 
  "Integra Tower will give good returns to KWAP from rental income," said Wan Kamaruzaman in a statement yesterday.
 
  KWAP made its first property acquisition abroad in 2010 and owns six properties in Sydney, Melbourne and Brisbane in Australia, and three in London, the United Kingdom.
 
  As at December 31 2013, KWAP's total investment in international properties was RM4.08 billion.
 
  KWAP is looking to increase its property investment overseas and is eyeing a few assets in the United States, albeit cautiously.
 
  "KWAP intends to buy two or three quality assets in the US that will give around six per cent yield. It is looking at a few commercial properties but is not rushing to buy because of the market situation and ringgit depreciation," said a source with knowledge of the matter.

Plan to integrate MRT with hgiih speed rail

By Sharen kaur

KUALA LUMPUR: THE re-alignment of the mass rapid transit (MRT) Line 2 will integrate with the proposed Kuala Lumpur-Singapore high speed rail (HSR) at the RM190 billion Bandar Malaysia development in Sungai Besi, here.
 
  Under the original alignment, MRT Line 2 (Sungai Buloh-Serdang-Putrajaya) would be 59.5km long and have 40 stations.
 
  It will run from Sungai Buloh to Jalan Sultan Azlan Shah (Jalan Ipoh), Kampong Bharu and KLCC East, heading towards Tun Razak Exchange (TRX).
 
  From TRX, it would move on to Taman Maluri, Pandan Jaya, Pandan Mewah and Plaza Phoenix to Alam Damai, Mines Resort City, Seri Kembangan and Putrajaya Sentral.
 
  Mass Rapid Transit Corp Sdn Bhd (MRT Corp) is proposing a realignment of MRT Line 2, which will see the closure of some sections of the original route and the inclusion of stations at Bandar Malaysia and Jalan Chan Show Lin.
 
  As part of the Land Public Transport Commission's (SPAD) public transport master plan, there will be two MRT stations in Bandar Malaysia, the site of the Royal Malaysian Air Force Base.
 
  However, the stations due to be built along the MRT Line 3 alignment are in the planning stage.
 
  MRT Corp strategic communication and public relations director Amir Mahmood Razak told Business Times that it makes sense to re-align the MRT Line 2 to Bandar Malaysia, as the government was proposing to build the HSR stop there.
 
  According to Amir, the proposed re-alignment will see total ridership on MRT Line 2 rising to 529,000 a day, from the expected 513,000.
 
  "The proposed re-alignment would start from TRX station where it will head to Chan Sow Lin and Bandar Malaysia. It then moves to Kuchai Lama, Sri Petaling, Sungai Besi, Serdang Raya and then connects back to Seri Kembangan.
 
  This is a massive catchment for the MRT Line 2.
 
  "We are axing Taman Maluri, Pandan Jaya, Pandan Mewah, Plaza Phoenix, Alam Damai and Mines Resort City from the alignment as these are areas served by the light rail transit (LRT) line, while the Sungai Besi area is only serviced by KTM Komuter.
 
  "With the re-alignment, we will have 36 stations and the total stretch would be slightly shorter at 52.2km. MRT Line 2 will be linked to the LRT, monorail, Express Rail Link and KTM Komuter. The plus point is the HSR.
 
  "In terms of duration of journey for the full loop, it used to be one hour and 41 minutes. Now, it would be one hour and 24 minutes. The elevated alignment will be shorter from 49.3km previously to 38.7km.
 
  The plan will also involve building a 13.5km underground tunnel from Jalan Ipoh to Bandar Malaysia," Amir said.

Naza TTDI - Landscaping for enhanced living

By Sharen Kaur

KUALA LUMPUR: SUCCESSFUL property development projects, whether residential or commercial, require landscape design that offers a blend of natural beauty and homely charm. A well-designed landscape is aesthetically pleasing and functional.
 
  Increasing standard of living has made landscaping an indispensable requirement for homes and commercial establishments, and character building is part of the planning, design and management process.
 
  Malaysian property developers have been spending more time and money landscaping their development projects and have won many international awards.
 
  Naza TTDI Sdn Bhd, the property development arm of the Naza group, has received recognition for its collection of fine homes such as TTDI Ascencia in Taman Tun Dr Ismail here, TTDI Alam Impian in Shah Alam and The Valley TTDI in Ampang.
 
  The upcoming TTDI Ascencia, being developed at Jalan Damansara, will include various landscape features such as a sky garden at the 33rd floor, enabling residents to not only enjoy panoramic view of the city but also experience the luxury of landed property landscape. The car park podium will be decorated with faÁade treatment of green creepers and trees will be planted at the facility level, creating a 'lake-like' environment for relaxation and recreation purposes.
 
  Meanwhile, the lavish landscaping of The Valley TTDI is inspired by the pristine neighbouring forest, superseding all expectations of living in harmony with nature. The exclusive development is designed to maximise comfort, privacy and functionality.
 
  Naza TTDI chief development officer Megat Rozlan Abdul Rahman said landscaping is more than just planting trees.
 
  "It is about creating a cosy and comfortable 'public art' for our purchasers, surrounding community and public visitors in general. The 'look and feel' of each development is crucial. It influences the marketability of products tremendously.
 
  "Landscape is to enhance the environment of a development to create a quality ambiance that compliments the project and surrounding. For example the landscape and greeneries within TTDI Ascencia is planned to decrease temperature and enhance the mood of relaxation," Rozlan told Property Times.
 
  He added that the facilities and landscape surrounding the award-winning development is initiated to cater to market's demand of urban living with some space of lawn and trees around their homes.
 
  Since its founding in 1973, Naza TTDI, with its first highly acclaimed township project the Taman Tun Dr Ismail in the suburb here, began to position itself to become a major property developer in the country.
 
  Backed with the vision to be at the forefront of the industry, Naza TTDI has successfully completed more than 15,000 residential and commercial developments and continues to embark on more distinguishable township, boutique and signature developments that include the prestigious Platinum Park, which aims to be Kuala Lumpur's most exclusive integrated residential and commercial development, and KL Metropolis, an international trade and exhibition district.
 
  KL Metropolis that spans across 30.6ha with a gross development value of RM20 billion will be a comprehensive development that integrates the best practices of urban planning and green initiatives. This green space network is targeted to seamlessly integrate existing adjacent properties while respecting the existing topography, landscape and water courses.
 
  Rozlan said there are two main components in landscape design - softscape and hardscape.
 
  "Naza TTDI does not create merely green areas (softscape), but we look into hardscape landscaping too. Softscape elements include soils, plants, shrubs, trees, flowers, turf and colour schemes while hardscape is the function of trails, streetscapes and parks. Both elements play an important role in attracting crowd to each development especially residential townships.
 
  "In addition, with a certain repetitive and distinctive design, hardscape can be moulded into an identity.
 
  This includes identity of the product, development and the company, or in other words, signature landscape and design." Rozlan added that signature landscape can be an innovative way to project or enhance the identity of a product or a brand.
 
  "Landscape plan is compulsory upon submission of a master plan to the local authorities. Hence, Naza TTDI often includes landscape more than what is required by the local authorities and this has won us many customers and awards," he said.
 
  According to Rozlan, Naza TTDI works closely with landscape architects and consultants, contractors, engineers, and the local authorities to map out the planning process for design and landscaping, and the elements to be featured in each of its development.
 
  The design approach and consideration is based on current market trends.
 
  "The landscape has to be planned and designed at the very beginning of the master plan. The softscape and hardscape designs have to be complimentary and be 'hand in hand' with the building. This is not just for beautification of an area, but (also) practicality. The landscape consultants are involved from the very beginning of the process until the implementation stages," he said.
 
  On whether a project would do well without strong emphasis on landscaping especially with today's discerning buyers, Rozlan said it would depend on location, nature of business or lifestyle of the development, as well as the surrounding community and environment.
 
  "In the end, the objective of creating quality lifestyle must be met. Landscaping affects a lot of the 'look and feel' of a project. For example, we foresee that the grey water harvesting and artificial turfing local industry will grow. Landscape will not just be used to beautify the area but also as a facade treatment.
 
  "I believe that the future landscape environment will focus on sustainable landscaping where by hardscape and softscape must work hand in hand to meet the development's objective. We feel that pathways (hardscape) will be a trend in Kuala Lumpur and Selangor as it increases safety and the HSE index within these cities.
 
  "As an industry player, we hope more public green spaces will be available to buyers and the community in general. However, as a developer, we could only do so much cause sometimes, there are limits of boundaries by the local authorities and the surrounding community," he added.

MRCB plans RM1.3b project on German embassy land

By Sharen Kaur

KUALA LUMPUR: Malaysian Resources Corp Bhd (MRCB) is planning a mixed-used integrated project with a gross development value (GDV) of around RM1.3 billion on the German embassy land here.
 
  Its executive director, Mohd Imran Salim, said the group hoped to start the development early next year.
 
  "We are looking at multiple options. It will be a mixed-used project but we are still finalising the components.
 
  "We expect the project to generate a GDV of RM1.2 billion to RM1.3 billion but this may change as the planning progresses.
 
  "We have just signed the sale and purchase agreement and will start applying for the necessary approvals.
 
  "We hope to start construction next year," he told Business Times.
 
  MRCB, which has a market capitalisation of RM2.23 billion, signed an agreement with the German government yesterday to buy the 0.76ha freehold tract in Jalan Kia Peng for RM259.16 million, or RM3,188 per square foot.
 
  The price, based on the appraisal conducted by CH Williams Talhar & Wong and Raine & Horne International Zaki & Partners, is about six per cent higher than the market value.
 
  The German government had on January 26 put up a tender for the sale of the land, which served as the official residence of the German ambassador to Malaysia until June 2013.
 
  The deal was done via Legasi Azam Sdn Bhd (LASB), a 100 per cent-owned unit of MRCB Land Sdn Bhd, which in turn is fully-owned by MRCB.
 
  MRCB group managing director Tan Sri Mohamad Salim Fateh Din signed on behalf of LASB while German ambassador to Malaysia, Holger Michael, signed for his government.
 
  The acquisition is part of MRCB's strategy to grow its property development operations.
 
  In a filing to Bursa Malaysia, MRCB said it hoped to conclude the deal by August.
 
  It would finance the acquisition via bank borrowings and internally-generated funds.
 
  For the 12 months to December 2014, MRCB achieved a net profit of RM152.63 million versus a net loss of RM109.13 million in 2013.
 
  In a separate statement, Salim said the board was optimistic about its prospects after taking into consideration the scarcity of freehold land in the highly sought-after city centre.
 
  "The supply of land is inelastic and the cost of land-banking will continue to rise," he added.
 
  MRCB closed two sen higher to RM1.25 yesterday.

UEM Sunrise sees rail boost to project

By Sharen Kaur

NUSAJAYA (Johor): UEM Sunrise Bhd expects its approximately RM40 billion Phase 2 development called Gerbang Nusajaya, here, will be further boosted by the proposed high speed rail (HSR) link between Kuala Lumpur and Singapore.
 
  Malaysia and Singapore have in principal agreed to build the HSR link, with seven stations planned across Peninsular Malaysia.
 
  In Johor alone, there will be three stations. The other four stations will be located in Ayer Keroh, Malacca; Putrajaya; Labu in Seremban, and Bandar Malaysia in Sungai Besi.
 
  According to UEM Sunrise chief operating officer (commercial) Raymond Cheah, the HSR station will be located in the centre of Gerbang Nusajaya and surrounded by catalytic developments such as Nusajaya Tech Park and Singapore tycoon Peter Lim's Motorsport City.
 
  The Tech Park, which has a gross development value of RM3.7 billion, is a joint venture between UEM Sunrise and Singapore's Ascendas Group.
 
  Cheah said the masterplan for Gerbang Nusajaya is being redesigned to include the proposed HSR station.
 
  UEM Sunrise, as master developer for Nusajaya, plans to develop the station as a transit-oriented development (TOD) together with the Land Public Transport Commission, he said.
 
  "It will be an integrated mixed-used development, featuring office and residential towers, a hotel, retail and commercial. We are quite bullish on this development. If you look at TOD projects in Japan, Singapore and Europe, they have all been very successful.
 
  "We expect the TOD project to further add value to Nusajaya and Iskandar Malaysia as a complete package," Cheah told Business Times after a media briefing on the second wave of development for Nusajaya yesterday.
 
  Cheah is hopeful that the HSR station in Gerbang Nusajaya will link to the Singapore-Johor Baru rapid transit system (RTS).
 
  Iskandar Regional Development Authority chief executive Datuk Ismail Ibrahim, who was at the briefing, said the key success factors for the HSR link will be connectivity with land, air and maritime travel.
 
  He said the final stop for the HSR terminal in Johor will be in Iskandar Malaysia, in particular flagship B, which is Nusajaya.
 
  "Our prime minister and his (Singapore) counterpart will meet soon on this. We anticipate this will take place at the next leaders' retreat, which is expected to be in the middle of this year," Ismail said.
 
  Gerbang Nusajaya will be developed over 25 years. Upon full completion, it is expected to create an estimated 76,000 direct jobs and 137,000 indirect ones.

IJM joins race for Line 3's PDP role

By Sharen Kaur
Published in NST on April 22, 2015

KUALA LUMPUR: IJM Corp Bhd has emerged as the latest contender for the role of project delivery partner (PDP) for the proposed RM9 billion light rail transit Line 3 development linking Bandar Utama to Klang.
 
  It is understood that IJM bought the tender document on April 10 and is eyeing the PDP role with its partly-owned unit, Scomi Group Bhd, which has Scomi Engineering Bhd as its subsidiary.
 
  "Both IJM and Scomi Engineering have rail expertise to carry out the PDP role for Line 3. They may give the Malaysian Resources Corp Bhd-George Kent (M) Bhd consortium, which remains the favourite for the deal, a run for their money," a source said.
 
  MRCB-George Kent and IJM are among seven firms shortlisted by Prasarana Malaysia Bhd, the project owner.
 
  The others are MMC Corp Bhd, UEM Builders Bhd, the Naza Engineering and Construction (Naza E&P) Sdn Bhd-CSR Zhuzhou Electric Locomotive Co Ltd consortium, Sunway Bhd and the WCT Bhd-AlloyMtd group.
 
  The 36km Line 3 will have 25 stations, including one underground. It is expected to be operational in 2020.
 
  Sources said around 25 companies had submitted proposals for the PDP role. Among those voted out were YTL Corp Bhd, Systra from France and Caf of Spain, said another source.
 
  "It is strange that YTL Corp was disqualified despite building and operating the Express Rail Link between Kuala Lumpur Sentral in Brickfields and Kuala Lumpur International Airport and Kuala Lumpur International Airport 2.
 
  "The concern is that among the seven qualified groups, only George Kent and IJM have experience in railway matters.
 
  "The rest are civil engineering firms and they have no experience in systems engineering, which includes track work, power supply, signalling and communication.
 
  "We understand that some of the parties are talking to Global Rail Sdn Bhd to be the systems integrator so they would have a complete package.
 
  "They have about two months to submit their respective proposals for the PDP role. The fee structure should be a minimum six per cent and it comes with the risk to deliver," the source said.
 
  Global Rail is a railway engineering firm founded by veteran Fan Boon Heng, who previously headed ABB Daimler-Benz Transportation and later Balfour Beatty Rail Sdn Bhd for about 20 years.
 
  Meanwhile, the PDP concept was first used for the Klang Valley mass rapid transit line from Sungai Buloh to Kajang. MMC Corp and its partner Gamuda Bhd were given the PDP role for the MRT and MRT 2 lines.
 
  Under the MRT agreement, the PDP will receive a fee of six per cent of the total aggregate work package contract value. It will get the full fee should the total cost of the project be less than or equal to the target cost.
 
  But if the project cost exceeds the target cost, the PDP fee shall be reduced in accordance with an agreed formula.

Malaysia's USD1.5b sukuk a hit

By Sharen Kaur

KUALA LUMPUR: MALAYSIA'S dual-tranche USD1.5 billion (RM5.48 billion) sukuk - its first bond sales since 2011 - is a hit with orders of USD9 billion from Asia, Europe, the Middle East and the United States.
 
  This reflects foreign investors' confidence in the country's financial and political health over the long term.
 
  The sukuk, which is expected to be assigned ratings of "A-" by Standard and Poor's Ratings Services and "A3" by Moody's Investors Services Ltd, was split into a USD1 billion 10-year tranche and USD500 million 30-year offering issued via a special purpose entity, Malaysia Sovereign Sukuk Bhd (MSSB).
 
  MSSB employed a structure utilising syariah-compliant commodities, leasable assets and non-physical income-generating assets, a world's first for sovereign sukuk.
 
  In a statement, the Finance Ministry said the deal was oversubscribed with an aggregate interest of over USD9 billion from a combined investor base of more than 450 accounts.
 
  The 10-year tranche was oversubscribed by almost seven times, while the 30-year tranche was oversubscribed by about six times.
 
  The deal was priced at the tighter end of the revised price guidance, reflecting investors' confidence, strong external position, monetary flexibility, fiscal sustainability as well as the diversified and competitive Malaysian economy, the ministry said.
 
  Reuters reported that the 10-and 30-year sukuks were priced at 115 basis points (bp) and 170bp over US Treasuries, respectively, representing a tightening of 20bp and 15bp from the given price guidance.
 
  Meanwhile, the ministry said the offering marked Malaysia's fourth US dollar-denominated sovereign global sukuk issuance, following its successful global sukuk issuances in 2002, 2010 and 2011.
 
  Proceeds from the offering would be used for syariah-compliant general purposes specifically for the redemption of 1Malaysia Sukuk Global Bhd's USD1.25 billion trust certificates due in June and to finance development expenditures.
 
  "We are delighted to bring this ground-breaking sukuk to the growing Islamic finance market. We are extremely pleased with the success of this deal and the confidence of the global investors in the Malaysian credit story," said Treasury secretary-general Tan Sri Dr Mohd Irwan Serigar Abdullah.
 
  CIMB Investment Bank Bhd, The Hongkong and Shanghai Banking Corp Ltd and Standard Chartered Bank acted as the joint bookrunners and joint lead managers for the global sukuk offering.

Nusajaya - Maximising value and potential

By Sharen Kaur

NUSAJAYA (Johor): URBAN development projects are expected to go beyond the fundamentals of maximising land and asset value. They must meet the requirements of tenants, users, communities and stakeholders, as well as generate value and employment in the economy, raise the quality of life and support community development.
 
  Balancing these requirements require good design, strong overall planning, economic and financial modelling, clear-cut engineering and understanding of the development.
 
  Listed developers in Malaysia have recognised that for a project to be successful, they should focus on integrated planning and infrastructure.
 
  It is interesting to note that the largest urban integrated development in Southeast Asia lies in Johor's Nusajaya.
 
  The 9,600ha Nusajaya will play a key role in shaping Iskandar Malaysia to become a sustainable metropolis of international standing by 2025.
 
  Officially launched on February 15 2007, Nusajaya is one of the five flagship zones of Iskandar Malaysia - an economic corridor three times the size of Singapore.
 
  Upon full completion, the region will provide significant investment, financial and business opportunities for economic growth and development in Johor.
 
  From 2006 to 2014, total committed investment in Iskandar Malaysia stood at RM158 billion, with 35 per cent foreign-driven.
 
  Top investors came from Singapore, China, Japan, Spain and the United Kingdom and they invested mainly in the education, tourism and healthcare sectors.
 
  The master developer of Nusajaya is UEM Sunrise and landmark developments include Kota Iskandar, Puteri Harbour, EduCity Iskandar, Afiat Healthpark, Legoland Malaysia Resort, Southern Industrial Logistics and Clusters (SiLC), and Nusajaya residences.
 
  UEM Sunrise chief operating officer, Raymond Cheah Ho Chee, says the company will be busy in Johor for a few years with the ongoing Phase 2 development of Nusajaya, known as Gerbang Nusajaya, attracting many Singaporean and Chinese investors.
 
  The catalytic developments for the 1,800ha Gerbang Nusajaya include the 207.9ha Nusajaya Tech Park, which has a gross development value of RM3.7 billion (a joint venture between UEM Sunrise and Singapore's Ascendas Group), Motorsports City and the Asian Trade Centre.
 
  Gerbang Nusajaya will also comprise developments such as Signature Residences, Gerbang Nusantara (affordable housing), as well as lifestyle and retail parks, campus offices and residential precincts.
 
  "Nusajaya was off to a promising start a few years ago and now we are talking about growth that has taken place in a short span in Gerbang Nusajaya, which is the next big development for Johor.
 
  "In Gerbang Nusajaya, besides catalytic projects, we will offer homes ranging from RM500,000 to RM7 million at Emerald Bay, so people from all walks of life can own a property here and enjoy the facilities and amenities," Cheah told Property Times.
 
  The technology park will focus on delivering a built environment for a wide range of industries, such as electronics, pharmaceuticals and medical devices, food processing, precision engineering, fast-moving consumer goods, logistics and warehousing.
 
  Motorsports City, launched in December 2012, is a joint venture between UEM Sunrise and FASTrack Autosports Pte Ltd, which is controlled by Singapore billionaire Peter Lim.
 
  The RM3.5 billion project over 118ha will feature a 4.5km race track to host GT, go-kart and motorcycle races, and all kinds of racing outside of single-seat class races. It will also be the model automotive hub, comprising 4S (sales, services, spare parts and systems) centres, car showrooms, bonded warehouses, retail and al fresco spaces with food and beverage outlets.
 
  Cheah says Nusajaya Tech Park is on track to completing its first batch of ready-built facilities by end of the year and has attracted flagship clients SANWA and Telekom Malaysia.
 
  FASTrack is close to finalising the details for the commencement of physical construction works The Asian Trade Centre, which is akin to Dragon Mart in Dubai, will be developed over 48ha. UEM Sunrise's partner for this is Chinamall Holdings Pte Ltd.
 
  The 1.4 million sq ft mall worth over RM600 million will house more than 3,000 merchants offering products ranging from textiles to jewellery.
 
  Gerbang Nusajaya is located 5km from the Tuas Checkpoint via the Malaysia-Singapore Second Link with easy access to the Senai International Airport and Singapore's Changi International Airport.
 
  Meanwhile, Cheah says Gerbang Nusajaya's gross development value of RM42 billion is expected to surpass the RM60 billion mark as it will be connected to the proposed high speed rail (HSR) link between Kuala Lumpur and Singapore, which will raise land and property prices.
 
  Malaysia and Singapore have in principal agreed to build the RM40 billion HSR link, with seven stations planned nationwide.
 
  According to Cheah, there will be a HSR station located in the centre of Gerbang Nusajaya, surrounded by Nusajaya Tech Park, Motorsports City and luxury residences.
 
  UEM Sunrise plans to develop the station as a transit-oriented development together with the Land Public Transport Commission.
 
  It will be an integrated mixedused development, featuring office and residential towers, a hotel, retail and commercial units, similar to the types found in Japan, South Korea, Singapore and Europe, he says.
 
  UEM Sunrise, KLK plan RM20b projects
 
  UEM Sunrise Bhd and Kuala Lumpur Kepong Bhd (KLK) are gearing up to launch two joint mixed property projects in Gerbang Nusajaya and Fraser Metropolis in Johor, with a combined gross development value (GDV) of RM20 billion, next year.
 
  UEM Sunrise chief operating officer Raymond Cheah Ho Chee said the residential components would include homes for all segments of the market, ranging from affordable to high end, priced from RM500,000 to RM7 million.
 
  The RM15 billion Fraser Metropolis project will be undertaken by UEM Land Bhd and KLK Land Sdn Bhd, subsidiaries of UEM Sunrise and plantation group KLK, respectively.
 
  The project will comprise residential, industrial and commercial components on a 1,010ha site.
 
  KLK Land executive director Datuk David Tan said the company was in the midst of finalising the urban design for Gerbang Nusajaya, which would feature a "beautiful resort environment".
 
  "The development will be in two parts... the first being the parcel adjacent to the Ramsar reserve, to cater to demand for landed housing in an exclusive resort setting in a highly secured environment.
 
  "The second will be a higher density low-rise development adjacent to the Motorsports City and the proposed high-speed rail (HSR) station.
 
  "With the HSR link, the development will just get better and better. We hope to increase the plot ratio and density at the parcel facing the station. There will be a vibrant retail mall to complement the development," Tan told Property Times.