I-Berhad's RM3 million CSR initiative

By Sharen Kaur

    I-Berhad will embark on a Corporate Social Responsibility (CSR) programme at Central Walk @ i-City in the capital city of Selangor which will run from 21 November 2018 till 20th February 2019.
  The RM3 million CSR programme will feature major events, community and social activities, as well as charity drives and festive celebrations.
  There will also be street activities like food fairs, night bazaars and street performances.
  As an International Park frequented by tourists of many nations, this programme will also provide foreign investors and tourists a glimpse of Malaysian life while bridging the cultural divide between the international and local communities, said I-Berhad executive chairman Tan Sri Lim Kim Hong.     Central Walk @ i-City is a multi-block leisure, shopping and hospitality spine of i-City encompassing a theme park, the 1.5 million square feet Central i-City Mall, the i-City convention centre, Best Western Hotel, the five-star Double Tree by Hilton, and High Street retail spaces.
   As such, it is the most appropriate setting for this programme, said Lim.
  i-City is an internationally recognized tourism destination, and has been featured by CNN Travel as one of the world's top 25 most colourful and brightest places.
  Key attractions in i-City include the Red Carpet interactive wax museum, the snowfall experience in SnoWalk and the lightscape at the City of Digital Lights.
  The Central i-City Mall will be the first mall outside of Thailand by the Central Group that will be opened to the public in Jan 2019.
  Lim said, in addition to the many participating parties, i-City will also be working with a number of community service and social organizations to reach out to the less fortunate to ensure that the variety of activities on-hand represent all walks of life and that none are left out.
  i-City will also engage with a number of government agencies in line with its status as a MSC Cybercentre, Tourism Destination and International Park for this event.
  Highlights of this 3-month programme will be the "White Christmas in i-City" and the New Year Countdown celebrations, the Central i-City Mall opening, and Chinese New Year festivities.
  "We are confident that these attractions coupled with the various street performances and cultural shows will offer visitors a unique experience. We are expecting minimum 50,000 students to visit i-City as we will be giving away free tickets as part of the CSR programme.
  "In terms of residents, there are 15,000 people living in i-City now and the workforce is also increasing. So it will be a good opportunity for all those who will partake in this event," said Lim.
  Lim said, as part of the CSR initiatives, the developer will also cover the SME food and retail operators, as well as telcos and the automotive industry with special retail space offering to serve the expected 500,000 visitors during the programme.
  "This CSR will provide opportunities to these operators to boost their income. We will give them space to utilise for free for three months during the CSR programme," said Lim.

Rawang on right track

(File pix) An artist’s impression of M Aruna, a township developed by Mah Sing Group in Rawang. Pix from Mah Sing website

Published in NST Property,  September 27, 2018 

IN the early days, Rawang used to be a satellite town of Kuala Lumpur with an economy powered by tin mining.

Throughout the years, it started to expand and today, its population is close to 200,000.

Mah Sing Group Bhd chief executive officer Datuk Ho Hon Sang believes that Rawang is on the right track to become a property hotspot.

“People used to think that Rawang is far and inconvenient, but it’s a different town right now compared with the old days.

“With constantly enhanced connectivity and infrastructure, Rawang is slowly building its name as an ideal place to live. We believe that with the right land, concept and product, the development will see good take-up rates.”

Ho said Rawang was an up-and-coming area in the Klang Valley, and the company found that many house buyers bought their properties there because they wanted to own a landed unit at reasonable price, with the ease of commuting to work in Kuala Lumpur.

He said the town was also attracting investors, who were banking on the affordable property prices to reap profits through capital appreciation.

“Property investment remains a favourable asset class that helps preserve wealth against inflation. Mah Sing has a good history in Rawang and based on the success of our two townships, we are confident that our third—M Aruna— will be well received,” Ho told NST Property.

He said the population in Rawang was increasing with better infrastructure, resources and economic activities. “We have been investing in Rawang because of its location in the northern corridor of Kuala Lumpur.

“It is just 37km away from the Central Business District (CBD) with good road and rail connectivity.

“Back in 2011, we foresaw that with continued urbanisation, demand for residential land was expanding to the suburbs, including Rawang.

With our fast turnaround business model, we knew we could meet the demand for landed properties.

“As a market-driven developer, we understood the needs of the emerging generation of property buyers, and when the 91.5ha landbank for M Residence@Rawang was acquired, it made perfect sense to build a township that provides rapid access to the CBD with the comfort and joy of suburban living.”

Ho said M Residence@Rawang was envisioned as a place for urbanites and city dwellers to call home. “Due to overwhelming response for M Residence@Rawang, we acquired another 63.5ha of prime land just 2km south to build M Residence 2.”

Where growth was concerned, Ho believed Rawang had enough amenities to draw a new generation of homeowners. “This generation does not mind travelling further to work as long as they own a landed property.

“This is why our developments in Rawang have distilled the essence needed by this group.

The crucial factors that property buyers look into are always location, price and accessibility.

“The popular response to M Residence2 once again proved that Rawang has good potential when it comes to property acquisition.

“We are essentially meeting market demand for good quality homes with exceptional concepts and delivered in a timely fashion,” said Ho.

Competitive office space market

(File pix) Is there a glut in the office market in Kuala Lumpur? Pix by Ghazali Kori

Published in NST Property,  September 27, 2018

IS office space glut in Kuala Lumpur likely to worsen? Kuala Lumpur may attract foreign investments and multinational companies, but office rents are expected to remain competitive due to oversupply in certain locations.

The total existing space for purpose-built office in Malaysia in the first quarter (Q1) was 16,162.87 sq m, while occupancy stood at 12,514.15 sq m, or 77.4 per cent, according to the National Property Information Centre’s Q1 report.

The report showed in Kuala Lumpur, there is 8,394.7 sq m of existing space for purpose-built offices and the occupancy is 6,573.53 sq m, or 78.3 per cent.

Selangor has 3,403.52 sq m of existing space with occupancy of 2,513.55 sq m, or 73.9 per cent. The substantial supply of office space due to come to the market is expected to result in vacancy rates rising significantly.

Under construction is The Exchange 106 and a few other towers in the Tun Razak Exchange, the 88-storey Signature Tower at Bukit Bintang City Centre, and Merdeka PNB 118.

There are a few other major office developments that are part of massive integrated commercial projects in the city which have been announced and, if launched and completed, will add significantly to the future supply of office space in Kuala Lumpur.

They include KL Eco City, KL Sentral, Tradewinds Towers (50- and 26-storey office towers), Lot 185 KLCC, Tradewinds Square (proposed 110-storey corporate tower and 61-storey mixed use tower) and the 80-storey office tower that will be added to Menara Dayabumi.

Pelaburan Hartanah Bhd is also developing several office towers on land that used to house Unilever Malaysia’s soap and margarine manufacturing plant along Jalan Bangsar, while Tenaga Nasional Bhd has started a few commercial projects on its Bangsar land.

“All these developments will increase the supply of office space substantially and this has given rise to fears of an acute oversupply situation in the coming years,” Henry Butcher Malaysia has said.

Bank Negara Malaysia, in its report for the third quarter of last year, warned of an impending glut in office space, which may result in one in three offices to be vacant by 2021.

CBRE WTW said in its 2018 Asia Pacific Real Estate Market Outlook that the overall purpose-built office market is expected to remain challenging.

It currently has a total supply of 105.1 million sq ft and completion of some 4.13 million sq ft of office space by this year is expected to put pressure on the occupancy rate and rental market, it said.

Public Mutual Office, Menara Suezcap Tower 1, Sunway Geo and UOA Commercial Centre are some of the new additions.

The report also stated that last year, the average prime rental in Kuala Lumpur was RM7 per sq ft. It is expected to decline further in view of the competition among new buildings and ample future supply.

GLOOMY MARKET

Knight Frank Malaysia executive director of corporate services Teh Young Khean said the office market outlook for both Kuala Lumpur and Selangor remains lacklustre.

Impending supply, coupled with a tight leasing market, will continue to put pressure on occupancy and rental rates, he said.

“Landlords with older and newly completed buildings, especially in Kuala Lumpur, are more accommodating in providing additional incentives to retain existing tenants as well as to attract potential tenants,” said Teh.

The office rental market in Kuala Lumpur recorded the steepest decline in the Asia-Pacific region in the second quarter, according to Knight Frank’s Asia-Pacific Prime Office Rental Index for the second quarter.

The index showed Kuala Lumpur’s office rent had declined 0.8 per cent over the quarter.

On the overall office rental market in Asia Pacific, Knight Frank Asia-Pacific’s head of research Nicholas Holt said steady demand seen in the prime office market is expected to bolster rental growth for the second half of the year.

“Despite several headwinds, including trade rensions, regional economic growth continues to fuel demand for Grade-A office space,” he said.

Knight Frank’s Asia-Pacific office rental index increased 2.4 per cent quarter-on-quarter to 137.2 points, surpassing the 0.9 per cent growth recorded in the first quarter.

The main cities driving growth this quarter were Tokyo, Bengaluru, Hong Kong and Sydney — the markets that are facing supply constraints.

Danny Tan may inject more assets into Tropicana

Tropicana Danga Cove. Pix from Tropicana Danga Cove website

By Sharen Kaur - September 27, 2018

TAN Sri Danny Tan Chee Sing, who in the past had injected over RM11billion of his private properties into Tropicana Corp Bhd, may likely sell more assets to the property group.

Tan, the younger brother of Berjaya Group's Tan Sri Vincent Tan, has a wide spectrum of businesses like property development, property investment, resort management, restaurants and leisure through his investments in public and private limited corporations.

According to Forbes, the 63-year-old businessman and entrepreneur's net worth as at July this year was US$990 million (RM4.09 billion).

Tan, who retired after 23 years from the day-to-day operations of Tropicana in 2015, is selling 50.1 per cent of his private firm Peluang Duta Sdn Bhd (PDSB) to the group which he founded in 1992 for RM49.05 million.

PDSB's 70 per cent-owned subsidiary, T Sanctuary Development Sdn Bhd, owns two plots of land measuring 133.182ha in Johor. The land has been earmarked for a mixed development project with a potential net gross development value (GDV) of RM4.3 billion.

The proposed project will comprise 70 per cent residential and 30 per cent commercial, which includes terraced houses, shop offices, urban affordable homes, serviced apartments and an international school.

Tropicana said in a filing with Bursa Malaysia recently that the total purchase consideration was based on RM40 per square foot (psf), which is about 11 per cent discount from the indicative market value of RM45 psf.

Tropicana has entered into a conditional share sale agreement with Tan and his children to acquire the stake in PDSB. This is deemed a related party transaction, as Tan, who is responsible in the development of the Tropicana Golf & Country Club in Petaling Jaya, is a major shareholder of Tropicana with about 70 per cent direct and indirect stakes.

His children—Datuk Dickson Tan Yong Loong and Dion Tan Yong Chien—are the group's deputy group chief executive officer and group managing director, respectively.

Dickson Tan and Dion Tan, as well as Danny Tan's other children, Dillon Tan Yong Chin and Diana Tan Sheik Ni are also major shareholders and directors of PDSB.

Tropicana expects to complete the proposed acquisition of PDSB next month.

Meanwhile, the group said it is bullish on the Johor market, taking into account the increased transaction volume by 11.6 per cent in the first quarter of this year compared with the preceding quarter last year.

"The residential sector remains dominant in the overall property market," it said.

Commenting on Tropicana Danga Cove, the group's project in Iskandar, Johor, it said the first residential phase, Ayera Residences has been well received witha100 per cent take-up for the non-Bumiputera units.

Tropicana is launching the second phase in the fourth quarter of this year.

"Riding on the success of Tropicana Danga Cove, this proposed acquisition is timely as it allows the group to increase its land bank size in prime locations in Johor that have positive development value, which can be unlocked immediately upon completion of the proposed acquisition," said Tropicana.

The 112.09ha Tropicana Danga Cove has a projected total GDV of about RM7 billion.

Tropicana is also developing Tropicana Danga Bay in Johor.

TTDI longhouse settlers seek quick delivery

(File pix) Taman Tun Dr Ismail residents are against the proposed housing development by Malton Bhd as it will take away a portion of Taman Rimba Kiara Park. Pix from tamanrimbakiara.net

By Sharen Kaur - September 27, 2018 

THE delay of a RM3 billion housing development in Bukit Kiara, Kuala Lumpur, by Malton Bhd’s 51 per cent-owned unit, Memang Perkasa Sdn Bhd, is affecting the livelihood of Taman Tun Dr Ismail (TTDI) longhouse settlers.

The proposed development —a joint venture between Memang Perkasa and Yayasan Wilayah Persekutuan (YWP)—comprises eight blocks of luxury serviced apartments, between 42- and 54-levels with 1,800 units. It also includes a 29-storey block featuring 350 affordable apartments with 200 units reserved for the relocation of the longhouse families.

TTDI residents are protesting the proposed development as they fear the 10.24ha Taman Rimba Kiara Park — their “last green lung” in the area — would be in jeopardy.

Kuala Lumpur City Hall (DBKL) had in mid 2016 approved the housing development on 4.86ha land in Taman Rimba Kiara, which is designated as a public open space under the Kuala Lumpur City

Plan 2020.

It was reported that YWP had carved out the 4.86ha for the proposed development and procured the issuance of a title to itself in 2014, after which it formed the joint venture with Memang Perkasa.

Bukit Kiara Public Housing Residents Association chairman Sunderam Vadiveloo said the prejudicial objections raised by TTDI’s residents associations and management bodies against the housing development have caused delay in the construction of the 29-storey block and has directly affected the rights of the longhouse settlers.

He said the settlers have waited for 36 years to move into their permanent homes.

In 1982, DBKL temporarily relocated some 98 families from Bukit Kiara Estate to the longhouses after the government acquired the rubber estate that is now known as Bukit Kiara.

The longhouses were built on a 1.78ha site, which now forms part of the proposed housing development by Memang Perkasa.

The settlers were told that the longhouses were merely temporary shelters and that they would be given proper homes.

According to Sunderam, permanent houses should have been built in five years but the families had been kept waiting longer.

In 2015, a Master Resettlement Agreement (MRA) was signed between YWP and the settlers.

Under the agreement, the settlers were offered permanent affordable housing on land next to the Sri Maha Mariamman temple and opposite the existing longhouses.

“The YWP made an offer of two affordable housing units for each family. The original settler would get a unit for free and a next of kin would be able to buy a unit at half the price, or RM175,000.

“All the families agreed to this and signed the agreement. The affordable apartments are supposed to be completed by next year, but it (the project) has yet to take off because of the dispute between the developer and TTDI residents,” he said.

Sunderam said the settlers hope that the affordable houses would be constructed soon so that they could rebuild their lives.

Recently, about 20 residents of the longhouses handed a memorandum to the Prime Minister’s Department asking Minister in the Prime Minister’s Department Waytha Moorthy to speed up the construction of the affordable housing project.

The memorandum was received by the minister’s political secretary, Muniandy Ponnusamy.

“Our families including children, 500 people altogether, are still living in cramped and dilapidated conditions. We hope the new government will solve this problem soon,” Sunderam said after handing over the memorandum.

“We know there are people objecting and there have been court proceedings to try and stop the project, but our houses are in a bad state and the residents, who are mostly in their senior years, are in dire need of better homes.”

It was reported that Federal Territories Minister Khalid Samad was in negotiations with the developer to scale down the project and find an amicable solution so the longhouse residents get their apartments as promised.

Segambut Member of Parliment Hannah Yeoh had proposed building flats close to the TTDI market for the longhouse settlers, but Sunderam said they prefer to have a permanent home near the Indian temple as promised in the MRA.

Far East bringing Dorsett brand to Australia

(File pix) Gold Coast skyline. Pix from Wallpaper-house.com

By Sharen Kaur - September 27, 2018 

HONG Kong-based Far East Consortium (FEC), controlled by businessman Tan Sri David Chiu, has started a A$400 million (RM1.21 billion) project at The Star Gold Coast resort development on Broadbeach Island in Australia.

FEC, which started operation in Australia in the mid-1990s, is developing a 53-storey hotel and apartment tower through Destination Gold Coast Consortium (DGCC) — a joint venture (JV) between FEC, The Star Entertainment Group and Hong Kong-based Chow Tai Fook Enterprises.

The project will herald the entry of the Dorsett hotel brand into Australia and it is slated to open for business in early 2022. The 316-room Dorsett Hotel will take the tower’s lower levels, while 423 apartments ranging from 54 to 109 sq m, known as Star Residences, will occupy the upper levels.

The one-bedroom apartment units are priced from A$467,000, while the two-bedroom units start from A$668,500. The 4.5-star hotel will be among an elite group of hotels on the coast with more than 300 rooms and the second biggest in the Broadbeach region behind only The Star Grand.

Dorsett Hotel International (DHI) vice-chairman Datin Jasmine Abdullah Heng said the recent ground-breaking ceremony for Dorsett Hotel in Gold Coast wasaproud moment for the hotelier.

“The Gold Coast is an attractive tourist destination with its beautiful beaches and surfing spots, exciting theme parks, vibrant nightlife, great dining and shopping experiences. We see its enormous potential and cannot wait to offer a whole new level of sophistication, service and style to future guests.

“We are one of Asia’s fastest growing hotel groups and our strategy is to target China’s fast-growing affluent middle-class market, offering memorable experience at great value and the highest levels of hospitality,” said Heng.

The introduction of Dorsett Hotel on Broadbeach Island will bring with it increased awareness in the global market, especially in Asia, where DHI owns and operates the majority of its 54 hotels.

The hotel and apartment project is the second development for the JV partners in southeast Queensland, following its historic endorsement by the Queensland government to transform Queen’s Wharf Brisbane with a US$3 billion (RM12.4 billion) integrated resort and residential development.

The JV company is also involved in a mega project in Sydney and has acquired the Sheraton Grand Mirage beachfront resort on the Gold Coast.

The Star Entertainment Group chairman John O’Neill said: “Together with our partners we have, in progress or planning, projects that will see our investment across Brisbane and the Gold Coast exceed US$4.5 billion.

“We are delighted to further enhance the tourism appeal of the Gold Coast and southeast Queensland with this latest joint-venture development,” said O’Neill at the groundbreaking for the hotel and apartment tower.

Australia’s largest privately-owned construction company, Hutchinson Builders, was named recently as the preferred contractor for the tower development.

Menta Construction preparing for IPO in 2019

By Sharen Kaur, NST Online, September 25, 2018 

KUALA LUMPUR: Menta Construction Sdn Bhd aims to launch an initial public offering (IPO) next year to raise about RM1 billion for expansion.

Chief executive officer, Tan Choon Hock told NST Business that Menta would use part of the IPO fund to invest in construction companies.

"We are looking for good investments and will invest in companies that are profitable and have businesses in construction.

"We will also utilise part of the proceeds from the IPO to acquire more land and undertake property projects. The focus right now is in Malaysia. In the future, if there are opportunities to venture overseas we will look into it," Tan said.

Menta was incorporated on April 6, 1982, and has done various construction work in excess of RM3 billion. This includes a RM1.27 billion earthwork contract for Petronas’ Refinery and Petrochemical Integrated Development (RAPID) in Pengerang, Johor.

In 2016, Menta registered a net profit of RM120 million. The company expects to achieve RM150 million this year.

Menta's current order book is valued at RM700 million. It has a RM500 million sub-contract for the Pan Borneo Highway in Sabah, and a RM200 million job to upgrade a 43 kilometre road between Gambang, Pahang and Segamat, Johor.

Tan said Menta was bidding for more jobs with a combined value of over RM1 billion.

It is eyeing a contract for drainage and earthwork worth RM200 million to RM250 for the Gemas-Johor Baru electrified double tracking project, and other jobs to build roads.

According to Tan, Menta had submitted its bid for the drainage and earthwork contract to the main contractor and would know the outcome within the next few weeks.

"We have another joint venture with a Sarawak-based company to pre-qualify the tender stage for a major road project in the coastal area in Sarawak. We understand that 105 tenderers have submitted for the pre-qualification so it will be a tough race," Tan said.

According to Tan, there were 18 parcels up for grab for the road project and each may be worth between RM500 million and RM600 million.

"We can bid for any of the parcels once we are pre-qualified. We will know whether we have been pre-qualified in the next two to three months and the Sarawak state will invite us to submit our bid," Tan said.

It was reported that the construction of the first part of the coastal road will start in the middle of next year.

Tan said Menta is also eyeing a major highway project in northern Malaysia but he declined to give more details.

Menta was in negotiation with several parties to jointly bid for the project, he added.

'Three shortlisted for TNB job'

(File pix) An artist’s impression of the new Tenaga Nasional Bhd tower. Pix from Melati Ehsan website

By Sharen Kaur - Published in NST Property, September 20, 2018

TENAGA Nasional Bhd (TNB) is believed to have shortlisted three companies to develop four office blocks and shared facilities within the vicinity of its headquarters in Jalan Bangsar, Kuala Lumpur.

The three companies are Sunway Construction Group Bhd, Ahmad Zaki Resources Bhd and Pesona Metro Holdings Bhd.

Sources close to TNB said the contract value for Phase 2 of the project is between RM700 million and RM800 million.

Phase 1, which includes a RM40 million job to build Balai Islam complex, has been awarded to Malaysian Resources Corp Bhd (MRCB).

"The frontrunner for Phase2 is Sunway Construction, which will be awarded with the project soon," said the source.

This landmark development with a gross development value (GDV) of more than RM1 billion is expected to house TNB's workforce and offer enhanced synergy and organisation collaboration.

It is also likely where the new TNB headquarters will be located as the existing one is 81 years old. In 2007, TNB had planned to build a new 34-storey headquarters that would cost up to RM300 million and be ready by 2011, but it was called off due to the economic slowdown.

TNB had wanted a new office to cater for its 30,000 workforce and expand operations. The headquarters were supposed to be designed based on Pucuk Rebung, which depicts a young bamboo shoot with strong foundations at its root and few leaves sprouting.

Meanwhile, Bayu Mantap Sdn Bhd, a company linked to property developer-cum-construction firm Melati Ehsan Holdings Bhd, is developing the 1.52ha land for TNB at the corner of Jalan Bangsar/Jalan Pantai Baru.

TNB and Bayu Mantap inked an agreement in June 2016 to undertake the freehold commercial development.

Bayu Mantap is controlled by Melati Ehsan's largest shareholder, Tan Sri Yap Suan Chee, and his family.

According to sources, TNB and Bayu Mantap will develop two high-rise towers and a two-level commercial complex, with a GDV of RM1.3 billion to RM1.5 billion.

One of the towers will be a Grade A office building. The other tower will include high-end serviced apartments and a four- or five-star hotel.

According to Melati Ehsan's website, the two towers will have 66 and 54 levels, respectively.

The other parties involved in this project are international firms, such as Turner Construction Co and Woods Bagot.

Turner Construction is the project management company that is also managing Permodalan Nasional Bhd's PNB 118 building, which is under construction in Kuala Lumpur.

Woods Bagot, a global architecture firm that is responsible for award-winning projects like the National Australia Bank headquarters in Melbourne and Chongqing Tower in China, designed the towers.

URBAN REGENERATION PROJECTS

It is surprising that TNB has started the three projects when the overall market is depressed.

A real estate expert said despite the current market sentiment, a development with the right mix of factors thatinclude location, lifestyle concept, pricing and marketing mix can perform reasonably well and attract buyers.

What the market wants to know is whether the TNB developments will fair well in the current market situation where there is oversupply, especially in retail and office space.

PropertyGuru Malaysia country manager Sheldon Fernandez said the TNB redevelopment is similar to many other urban regeneration projects in Malaysia.

"The goal is to unlock latent value of the land and assets and, if done correctly, is a welcome move. Urban regeneration is an essential part of city development that is similar to the development of TRX (Tun Razak Exchange) and Bandar Malaysia," Fernandez told NST Property.

He said urban regeneration has proven to be successful, citing the transformation of KL Sentral.

Fernandez said the KL Sentral Suites is a good example.

"The crux of the matter, however, is in the details. How will the land be developed? What is the financing model put in place? Will it be a joint-venture with TNB partnering an external developer? Will TNB still retain ownership of the land? What will the government's role be in all this? Has there been a thorough SIA (social impact assessment), TIA (traffic impact assessment and other impact assessment reports been conducted? Would it be a green building?

"Secondly, as always, there would be challenges, especially if the involved parties have different ideas. Recently, a similar development approach between UEM Sunrise Bhd and Telekom Malaysia Bhd signed in 2016 was scrapped.

"At this stage, we need to see more details from both parties before the full potential benefits of the projects and impact can be better gauged. But it is only natural for a company to wish to unlock its assets and commercialise or monetise them."

Fernandez said hospitality components would be a good fit for the TNB developments given the location, which is close to

Pantai Hospital and Pullman Kuala Lumpur Bangsar hotel.

"A hotel may support medical tourism in the area. As for commercial and/or retail, this needs careful planning as there is a present glut of commercial spaces and there are established retail spaces in Bangsar. MidValley also is relatively close by.

"Perhaps the commercial or retail spaces can be geared towards the healthcare sector to give the development a unique edge. If it's going to be Grade A office spaces, this in the long run should continue to do well, as Malaysia continues to see reasonable demand for such spaces and in the long term will likely be filled out, barring other factors aside," he said.

Fernandez also does not think the TNB projects would directly compete with KL Eco City and Pelaburan Hartanah Bhd's seven towers opposite The News Straits Time Press (Malaysia) Bhd.

"Rather than compete, we always believe that complementing existing developments is a better strategy to unlock value, while at the same time finding a unique niche within the specific location. A medical tourism or hospitality component may be suitable for the development to distinguish itself from others," he said.

Fernandez said Bangsar remains a well desired address and a mature locale and established suburb.

Prices continue to show upside on average for all residential property types— highrise homes, landed terrace homes, semi-detached and bungalow residences, he said.

"However, residents have voiced concerns about overdevelopment. Therefore, it is rather crucial that developments remain sustainable. However, given the location of TNB's land, which is not too close to residential areas, it is likely to have little social impact. But a TIA and SIA should be conducted to ensure this," said Fernandez.

On whether TNB is turning to real estate development, Fernandez believes that it is likely that TNB has considered all propositions and has adopted this approach to maximise its investment.

TNB, in its 2017 annual report, said it has 76.19ha leasehold and freehold land in the Federal Territory of Kuala Lumpur valued at almost RM228 million.

The net book value of its land and buildings in Kuala Lumpur is in excess of RM700 million and nationwide RM14.45 billion.

TNB's mega developments

(File pix) An aerial view of Tenaga Nasional Bhd's new development works in Bangsar. Pix by Muhd Zaaba Zakeria

By Sharen Kaur - Published in NST Property, September 20, 2018 

THE transformation of Jalan Bangsar in Kuala Lumpur with landmark skyscrapers has been progressive over the last five to eight years, led by KL Eco City.

Jalan Bangsar is just a short stretch between KL Eco City and the Public Health Institute land (off Jalan Bangsar). However, besides that of KL Eco City, there are several other projects — some new phases with in existing developments — coming up on the main road.

NST Property understands the combined gross development value (GDV) for these new projects is more than RM8 billion.

KL Eco City, with a GDV of over RM7 billion, is a mixed-use development that spans 10.12 ha and was launched in 2011.

The project is located on the site of former Kampung Haji Abdullah Hukum — at one end of Jalan Bangsar, fronting Tenaga Nasional Bhd's (TNB) headquaters.

It is the first integrated green luxury development in the area to be anchored by several prime commercial offices, as well as high-end retail and luxury residential offerings , and new phases are continuously being launched.

Pelaburan Hartanah Bhd (PHB) has also started a mixed-used evelopment on a8.09hasite opposite The New Straits Times Press (Malaysia) Bhd (NSTP).

The company is building at least seven towers with a GDV of more than RM5 billion on the site that used to house Unilever Malaysia's soap and margarine manufacturing plant.

While market players are eagerly waiting to see what type of buildings PHB will build there in terms of design and architecture, they are more surprised with the development projects undertaken by state utility giant TNB on its Bangsar land.

NST Property understands that TNB is undertaking two development projects, with a combined GDV exceeding RM2 billion, fronting the main road.

The first project involves the development of 1.52ha at the corner of Jalan Bangsar/Jalan Pantai Baru, facing the New Pantai Expressway (NPE).

The land is located near Sri Dasmesh International School and Sekolah Kebangsaan Bangsar.

The second project is located within the TNB headquarters premises, facing Jalan Bangsar and KL Eco City. The plan for this project is said to include four office blocks and shared facilities, as well as Balai Islam Center.

The third project is believed to be the development of a complex for building generation on about 5.67ha. It will comprise several generation buildings of no more than 10 floors opposite Zehn Bukit Pantai in Jalan Bukit Pantai.

It is understood that TNB, which aims to be the top 10 global utility by 2025, is building the complex at an estimated cost of about RM1 billion.

Earth-clearing and piling works for all the three projects have started.

When contacted, officials from TNB declined to comment.

It has been reported that TNB has earmarked a recurring capital expenditure (capex) of RM10.5 billion this year for transmission, distribution and energy generation purposes. Last year, its capex was RM12.1 billion.

China's global real estate purchases hit new high

Chinese international property buyers are motivated by a desire to diversify their assets, hedge risks, fund an overseas lifestyle or education, or seek higher returns. Pix from Juwai.com

Published in NST Property, September 20, 2018

BUYERS from mainland China purchased RM9.5 billion worth of residential and commercial properties last year.

More than four-fifths of the investment was in the residential sector, according to Juwai.com, the No. 1 Chinese real estate website.

Chinese buyers acquired residential properties worth RM8.3 billion and commercial real estate worth RM1.2 billion, said its chief executive officer and director Carrie Law.

“There is no secret why these buyers like Malaysia. (Among them are) proximity, affordability, quality of life, and a regulatory framework that allows them to contribute to the country and feel comfortable and safe there,” she said.

Malaysia’s growing economy and commercial links to China and the Belt and Road Initiative has made the Southeast Asian country even more appealing to the investors, she said.

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Law said there were some concerns recently over whether the Malaysian government would continue to welcome foreign investments, but she believed the support would continue.

“They will (support), of course, with sufficient safeguards for the country’s economic interests. Foreign investment in Malaysia means more money for the local economy. Investment leads to economic growth and job creation, and helps boost exports. All of these are good things.

“Chinese property buyers make a direct contribution to Malaysia’s economy. They are very often involved in commercial projects that further boost growth and employment in Malaysia,” she said.

CHINA INVESTMENTS SPREAD GLOBALLY

China has more billionaires than the United States. According to Knight Frank, mainland China plus Hong Kong SAR is home to nearly 14,000 individuals worth more than US$50 million (RM209.62 million).

High net-worth mainland Chinese real estate investors now control an estimated US$5.8 trillion of personal wealth, according to CapGemini.

“Much of it is easily investible, and almost half is already offshore. For these buyers, real estate overseas in 2017 was an appealing investment in an uncertain global environment,” said Law.

Last year, China became the world’s largest international commercial real estate investor, just as it did in the residential sector in 2015.

Mainland Chinese residential and commercial international property purchases last year reached a new high of US$119.7 billion, up 18.1 per cent from the US$101.4 billion that Juwai.com reported in 2016.

Since 2010, Chinese investors have acquired international properties valued in aggregate at more than US$430 billion.

According to Law, the key factor constraining Chinese international property investment growth last year was the regime of capital controls imposed by Beijing through both formal and informal channels.

Another contributing factor was a shift by Chinese residential property investors towards lower overall average prices, more specifically towards lower-priced markets.

“Looking forward through to year-end, we expect mainland Chinese commercial and residential property investment to increase within the range of three to eight per cent over the 2017 levels.

“That would bring 2018 levels up to around US$123.3 billion to US$129.3 billion globally. We believe this growth range to be sustainable and rational.” Law said separate surveys by UBS Evidence Lab and Financial Times Confidential Research show that capital controls are a relatively small factor for international property residential buyers.

“Two-thirds of Chinese overseas buyers told the UBS Evidence Lab that capital controls ‘didn’t affect me’. Financial Times Confidential Research’s monthly consumer survey shows that household demand for foreign exchange has reached its highest level since early 2016.”

She said Chinese international property buyers are motivated by a desire to diversify their assets, hedge their risks, fund an overseas lifestyle or education, or seek higher returns.

Very few today, though, are driven by the fear that helped drive investment growth in 2015 and 2016, she said.

“What we see today is better called international investments than capital flights. To serve these buyers, a number of actors have emerged to provide financing for international property acquisition with tacit approval (or at least not opposition) from Beijing.

“Some Chinese and Hong Kong institutions provide cash or financing for overseas property acquisition in exchange for assets held in China. Both bank and non-bank lenders — including property developers — in target countries are also seizing the opportunity to finance acquisitions by mainland Chinese.”

Law said the global picture for 2017 is one of plateauing investment in North America and Australasia, accompanied by rapid growth in Asia.

“The bigger a number gets, generally the slower it grows. That’s one explanation for the lower growth rate in Chinese international property investments.

The same level of growth off a larger starting point will give you a lower rate of growth.

“The trade war, lower economic indicators and other factors may seem to give the current environment a negative cast, but investment managed to grow last year despite a similar range of challenges.

We think it will grow again this year,” she added said.

Law added that when it comes to commercial property, there may be a decrease overall this year as volumes decline in North America and Europe, and remain flat in Asia.

Best eye-catching blooms in hot weather

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Published in NST Property, September 14, 2018

THE current scorching hot weather in Malaysia may persist for the next few weeks.

Under this dry weather, one of the best perennial succulents to plant in your garden that can tolerate drought and heat is portulacas, as it requires very little maintenance.

Portulacas may look like roses, but the leaves are the giveaway and the tree also grows just four to six inches tall.

It is the type genus of the flowering plant family Portulacaceae, comprising up to 100 species found in the tropics and warm temperate regions.

Also known as moss roses, they are easy to grow. Moss Rose plants are grown from seeds. Moss Rose seeds can be directly seeded into your flower garden, or indoors for transplanting later. They prefer loose, sandy or loam soils. A well-draining composition is important.

Add a general purpose, high nitrogen fertiliser when first planting, so the tree has a good start. Add a high phosphorous fertiliser just before it blooms. Once it starts blooming, you can stop the fertilisers. Next is all about maintaining the plant.

Portulaca produces vivid-coloured blooms, in shades of rose, pink, yellow, white, orange, red, cream or white, and purple. The wonderful plant will help attract butterflies to your gardens as well as act as eye-catchers for your landscapes.

Place portulacas in front of your flower garden. Or you can plant them as border edging, in rock gardens, as bedding plants or ground cover.

They will also look pretty in containers and hanging pots.

If you decide to grow them in hanging pots, make sure they have enough sunlight, if you are going to hang them under tall shrubs or trees.

If you want to place them in containers the plants will grow out and over the edges of them, making a grand display of strikingly vibrant-coloured blooms.

Most people plant portulacas in the ground or in huge pots as they will seed and spread themselves very well. This means you can buy a few portulacas, perhaps one for each colour, and they will multiple in no time. As they multiple, you can replant them. Soon you will have a garden of portulacas.

Portulacas, however, just like other plants are prone to insects or diseases if not taken care off.

Snails and slugs can be a problem too. Treat with insecticide or repellents, as and when needed.

Fungus diseases can also occur, especially if you have other plants that have them. Use a general purpose fungicide in humid weather, or when problems appear. However, do not use too much!

The roots can also rot if there is too much water added to the plant. Check soil occasionally.

Enjoy your portulacas!