From backwater to exclusive hot spot

By Sharen Kaur - Published in NST Property on October 31, 2019 

BUKIT Rahman Putra, a township in Sungai Buloh north of Klang Valley, is located within a short distance from the prestigious neighbourhoods of Valencia and Sierramas.

This township was established in 1991 by Land & General Sdn Bhd and named after Malaysia’s first prime minister, Tunku Abdul Rahman Putra Al-Haj.

“Back then, people looking to buy a home were not impressed with Bukit Rahman Putra as there were a lot of old factories in the area. Connectivity and accessibility was also a major issue. Location-wise, it was considered a remote area by many.

MRCB Land Sdn Bhd chief executive officer Raymond Cheah (right) and chief operating officer property Chin Chew Fan in a show unit of Alstonia.

“The township is now no longer the backwoods. The opening of the Sungai Buloh Hospital Interchange and other types of infrastructure developments has changed the people’s perception towards Bukit Rahman Putra. It started to attract people and developers came in to build more
homes,” said a senior marketing consultant familiar with the area.

The interchange provides residents with an alternative exit and entry point into the North-South Expressway and this has become one of the many key selling points for new projects in Bukit Rahman Putra.

Another attraction in the township is Rahman Putra Club Malaysia, one of the most distinguished golf clubs in the Klang Valley. The golf course, which opened in 1987, was designed by the late Tun Ghafar Baba.

Built over 113ha of shimmering lakes and captivating greenery, it is one of few in the country that hosts a 36-hole championship course which is divided into two — The Lakes and The Hills Championship.

Alstonia Hilltop Homes.Courtesy of MRCB

Overlooking the golf course are a handful of housing such as Sunway Rahman Putra, a 8.5ha gated-and-guarded development that was completed in 2006.

Sunway Rahman Putra features 112 superlink courtyard houses and 41 bungalows spread over 8.5ha of freehold land.

The superlink houses with spacious gross built-ups of 3,413 to 4,568 sq ft were sold at RM657,000 to RM1.1 million. The sale prices for the bungalows with built-ups of 5,000 to 6,500 sq ft were at RM1.3 million to RM1.9 million.

“This project did well as the homes are exquisitely designed within an exclusive environment. The bungalows have golf course view and frontage, and are tastefully designed with Balinese landscaping, complete with water fountains in the garden. The superlink houses resembles the Baba and Nyonya homes in Melaka.

“Looking at the success of this project, other developers started coming as there was pent-up demand for mid- to high-end houses,” said the marketing consultant.

BRANDED DEVELOPERS

In 2014, Malaysian Resources Corp Bhd (MRCB) purchased three plots of freehold land in Bukit Rahman Putra from Bisraya Acres Sdn Bhd, a wholly-owned subsidiary of Gapurna Sdn Bhd, for RM83 million.

MRCB had said that the land would be used for residential and commercial development with an estimated gross development value (GDV) of RM559.1 million.

Kalista Park Homes was launched in early 2016 on the first plot. The 2.2ha project has a GDV of RM101 million.

MRCB recently handed over Kalista units to buyers.

An artist’s impression of Alstonia Hilltop’s well-landscaped sanctuary.

The low-density development comprises only 28 units of superlink houses which had been fully sold. The houses, with built-ups of between 3,829 and 4,257 sq ft, were priced from RM1.6
million.

There are also 18 units of “semi-dees” and MRCB targets upgraders and owner-occupiers for the units.

The semi-dees, with a land size of 40ft x 85ft each, have built-ups of 4,679 sq ft for the golf view units while the standard units’ built-up is 4,561 sq ft.

MRCB Land chief executive officer Raymond Cheah said there are six semi-dees still available at Kalista. They are bumiputera units released recently for sale from RM2.5 million.

The fully-furnished show unit is also for sale at RM3.4 million, he said.

Alstonia Hilltop Homes is MRCB’s second launch in Bukit Rahman Putra. The project was launched in May this year. The project is an exclusive residential enclave on about 1.7ha of land with a GDV of RM250 million.

Cheah said the take-up for Alstonia currently stood at about 40 per cent.


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Growing demand for serviced residences

By NST Property - October 31, 2019

LANDED properties remain more popular with buyers than serviced apartments. However, iProperty.com.my’s “1H2019 Portal Demand Analytics” report shows that there is increasing demand for the high-rise dwellings.

Two months ago, the property portal, which is part of REA Group, launched a set of demand-driven findings, based on its user visits and listings data compiled from January to June 2019.



From the analysis, it showed three interesting trends in the market — pent-up demand in the serviced residence segment, the emergence of property hotspots in the outskirts of Kuala Lumpur and Selangor, and a shift of buyer interest to mainland Penang.

Serviced residences experienced the most significant growth in demand at 14.7 per cent, contributed by visits shifting over from condominiums. Despite the higher demand, serviced residences (with 11 per cent of total visits) still has to play catch-up game with condominiums (with 23 per cent of total visits).

REA Group Asia general manager (customer data solutions) Premendran Pathmanathan said there is a shift in demand from condominiums to serviced residences due to affordability reasons and location.



“The median price has depreciated by 8.2 per cent to RM490,000, thus making serviced residences more affordable with a slightly lower entry price within and around city centres. However, at a national level, this building type median price is somewhat similar to condominiums (RM500,000) because serviced residences provide convenience and accessibility,” he said at the launch of the report.

Premendran said serviced residences should have the right address, accessibility to public transportation and availability of commercial elements. Recent supply of this building type in the right location with the right elements has resulted in growing interests.

Terrace houses, meanwhile, have seen robust growth in demand by 3.7 per cent (with 32 per cent of total visits). This housing type, which makes up more than half of the residential property transactions in Malaysia, is still popular and has maintained positive capital growth of 6.7 per cent with a 3.7 per cent year-on-year increase in demand.



The analytics concludes that among the top four housing markets in Malaysia — Kuala Lumpur, Selangor, Penang and Johor, KL’s demand increased 3.8 per cent and Selangor’s was up 9.8 per cent, while that of Penang and Johor dropped by 4.4 and 16.1 per cent, respectively.

The “most-in-demand” areas in Kuala Lumpur are Batu Caves, Keramat, Sentul, Taman Tun Dr Ismail, Wangsa Maju, Damansara Heights, Pantai, Bandar Tasik Selatan, Kepong and Cheras.

Batu Caves, which tops the list, may be officially a town within the Gombak district in Selangor.
However, part of it intersects and falls in Kuala Lumpur. Batu Caves performed well in the first half of 2019, with 73.8 per cent year-on-year growth in demand compared to the previous year as there was an increase in the supply of serviced residences that were completed last year.

The “most-in-demand” areas in Selangor are Dengkil, Gombak, Semenyih, Cyberjaya, Sepang, Sunway, Bangi, Petaling Jaya, Klang and Bandar Utama.



Dengkil did well thanks to new launches by reputable developers. The recent opening of the RM150 million Gamuda Cove Interchange in the area may attract more visitors looking for subsale properties to iProperty portal.

The interchange provides direct access from the North-South Expressway Central Link (Elite) highway to the 615.06ha Gamuda Cove township’s commercial business district. Two additional
linkages to connect Gamuda Cove and Cyberjaya via Persiaran Cove Selatan are in the pipeline.

In Penang, Batu Kawan tops the list as new townships and housing projects have started there.

The Penang Designer Village and the IKEA shopping centre, which opened its doors in mid-March, have also generated more interest in properties in Batu Kawan.

Others in the list are Nibong Tebal, Balik Pulau, Kepala Batas, Seberang Jaya, Simpang Ampat, Teluk Kumbar, Bukit Mertajam, Bukit Minyak and Sungai Ara.



Batu Pahat takes the No.1 spot in Johor, followed by Senai, Kulai, Pasir Gudang, Gelang Patah,
Johor Bahru, Skudai, Permas Jaya, Ulu Tiram and Masai.

These areas were ranked according to the area/property listings which garnered the highest number of unique visits from Jan 1 to June 30, 2019.

The report, with additional data compiled from brickz.my, provides a transparent macro view of the current demand trends in the local residential property market.

The four states — Kuala Lumpur, Selangor, Penang and Johor — command more than 60 per cent of the property transaction market share.


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OYO sees good demand for budget spaces

OYO helps small hotel owners grow fast amid the current challenging environment.

By Sharen Kaur - Published in NST Property on October 31, 2019 

LOCAL hoteliers are bracing for a boom in the tourism sector next year as several campaigns have been launched to attract international visitors, such as Visit Malaysia 2020 and the Malaysia Year of Healthcare Travel 2020.

The country is targeting to welcome 30 million international tourists and achieve RM100 billion in tourist receipts next year.

OYO Hotels and Homes — the world’s third-largest and fastest-growing chain of leased and franchised hotels, homes and living spaces — believes that with the strength of the domestic and medium-haul traveller demographic, there will be healthy demand for dependable and good
quality budget accommodation.

“For asset owners in the budget space keen to grab their slice of the hospitality pie, customer
confidence and discoverability are key,” it said.

–– ADVERTISEMENT ––

OYO is helping hotel owners in Malaysia to upgrade their property to boost occupancy and revenue.



On an average, hotels which are part of OYO’s chain, have witnessed an increase in occupancy from 25 per cent to 65 per cent within three months.

The hotels enjoy various benefits, like support for technology, design, operations, revenue management, marketing and distribution.

OYO also help them upgrade their properties to provide quality living spaces for travellers.

The OYO hotel chain, founded in 2013 by Indian entrepreneur Ritesh Agarwal, has more than one million rooms under management globally.

Since its foray into Malaysia in 2016, OYO has been expanding its presence across the country, and more local hotel owners are joining the bandwagon. The company recently achieved a significant milestone, having recorded 10,000 rooms at 300 hotels in its chain across some 40 cities.



There is OYO in Kuala Lumpur, Penang, Kota Kinabalu, Kuching, Kelantan, Kuala Terengganu, Langkawi, Ipoh, Kota Baru, Johor Baru and Melaka, among other cities and towns in Malaysia.

Properties like OYO 535 Tanjong Inn in Kota Baru, Kelantan, have seen significant improvement.

This includes 70 per cent occupancy growth and double revenue, with the impact maintained even during off-peak seasons, said OYO 535 Tanjong Inn’s owner, Che Mohd Ariff.

Before joining OYO, Che Mohd Ariff said he often struggled in getting his accommodation offering noticed.

STREAMLINED MANAGEMENT

Every hotel that is a part of OYO’s chain works on OYO operating system (OS), giving them a cutting-edge advantage with sophisticated features, including express check-in and check-out.

It further allows online procurement and inventory management. The OS offers apps for housekeeping and audits while introducing solutions for multiple hotel management aspects like expense management, staff training and engagement along with performance review and incentives for the hotel staff.

Hotel owners have seen a remarkable improvement like enhanced inventory tracking, room turnaround time and service offerings.

Faster and more effective room cleanup, high-quality upkeep and well-maintained features ensure that user experiences always hit the mark.

All these facets come together to deliver technology-driven efficiency at each one of the 300-odd OYO hotels in Malaysia.




Tan Gok Khim said his hotel, OYO 246 Link Inn in Johor, recorded healthy recovery last year.

Besides boosting occupancy, revenue has also seen an increase by 30 per cent.

“With tracking of inventory and assignments switched over to a digital system, the staff have become more focused on operations. This includes delivering high-quality experiences, employing demand management strategy and creating offerings with dynamic pricing,” he said.

Occupancy at OYO 430 Oak Valley Boutique Hotel, also in Johor, saw a healthy jump from 60 per cent to more than 85 per cent.


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Exchange 106 'retells' KL's nostalgic stories

There are several businesses still operating on Jalan Imbi.

By NST Property - October 30, 2019 

THE Exchange 106, a skyscraper under construction within upcoming financial district Tun Razak Exchange (TRX) in Jalan Imbi, represents some great history of Kuala Lumpur.

Formerly known as TRX Signature Tower, the building retells the significance of Kuala Lumpur’s early developments and structures, most of which were built in the early 20th century when the tin mining industry was booming.

The Exchange 106 draws its beauty from the rich heritage and history of the location.

The area between Jalan Imbi and Jalan Davis was once dotted with many bungalows that flourished and were collectively a well-known landmark among the Kuala Lumpur community known as Pak Luk Kan.

To begin with, the name Pak Luk Kan, which literally translates to“Land of the 106 Bungalows”, was part of the architecture blending of local and colonial styles.

The bungalows in Pak Luk Kan used to house public service employees from the 1920s to 1980s and 1990s when they made way for the Pasar Raya Bukit Bintang, which came to be known as the Imbi Market, and the Pasarakyat Bus Terminal, and thereafter the site of the TRX.

Pak Luk Kan contributed to the rich heritage of different cultures in the area at Jalan Imbi. Originally known as Imby Road in English, Jalan Imbi was named after Sergeant Imby Seed in in 1905 as his home was considered a unique landmark there. From then came other landmarks that still exist today, including the Imbi Chapel, Oversea Restaurant, Sakura Restaurant and Fei Har Ching Ser Temple.

What’s left of Jalan Imbi.

In the vicinity of Pak Luk Kan, there is large part of Jalan Imbi that was owned by the late Loke Wan Tho. A known personality of the day, he was the poetry-loving film and cinema magnate, philanthropist, respected ornithologist and shutterbug who founded the Cathay Organisation and was
the son of tycoon Wong Loke Yew.

Another famous landowner was the Low Yat Group, one of the pioneers of Kuala Lumpur’s development who built commercial buildings in the Golden Triangle. The legacy started by
Tan Sri Low Yat was carried on by his descendants in further developing Kuala Lumpur, taking new opportunity and leaving an indelible mark on Kuala Lumpur.

V. Raju, a retired civil servant from Malaysia’s Department of Survey and Mapping and previously a resident of Jalan Selatan, said almost all government quarters at the Pak Luk Kan area then were built before Merdeka and could have been historical gems if efforts were made to preserve them.

“My family’s time in the 106 bungalows area was idyllic. Kids played out in the road and in each
other’s house. We had Chinese and Malay neighbours on either side, it was all very muhibbah,” said Raju.

He said as the years went by, the Imbi area became a hot commodity with its proximity to the commercial and retail developments of a thriving Kuala Lumpur.

“We knew it was just a matter of time that the government quarters would make way for the spread of the city.”

Raju said he moved out when the area made way for the development of the market area.

“While we may seem to lose a bit of old Kuala Lumpur, I’m glad that the Exchange 106 is paying homage to the Pak Luk Kan era, incorporating a bit of the heritage into its history, too.”

On May 13 2015, 1MDB Real Estate Sdn Bhd (1MDB RE), the master developer of TRX, and Mulia
Group’s unit, Mulia Property Development Sdn Bhd, signed a sale and purchase agreement for the development rights of the land for the Exchange 106, then known as the Signature Tower. The land was sold at RM665 million.

Groundwork commenced on March 1 2016, with the mat concrete foundation laid in May 2016.

CONNECTING TO HISTORY


Mulia Property, the developer of the Exchange 106, found a way to connect the history of Pak Luk Kan to it by referencing the 106 bungalows.

Drawing on the historic references of the land, the company took the original idea of Pak Luk Kan and modernised it. From 106 bungalows that adorned a single area, it transformed the spirit of
the neighbourhood by taking it to the skies. Now, 106 glorious floors dominate the skyline, thus welcoming innovators, dreamers, builders, artists and investors.

The 106-floor building is topped with a 65m, 12-storey high illuminated crown, making it 452m tall. It will have a net lettable area of 240,000 sq m.

The Exchange 106 is nearing completion to the highest international standards, complementing the country’s architectural treasures of Petronas Twin Towers and KL Tower.

It offers column-free office space of 22,000 to 34,000 sq ft, the largest columnless space in the country. These are designed for flexible layouts and open-plan interior configurations.

The diagonal positioning of the tower also provides ample distance from neighbouring towers and 360-degree views.

The main lobby is 15m tall, sophisticated and elegantly finished with highest quality materials, with book-matched marble cladding and English Burl wood veneer ceilings. It functions as a threshold to the different lift zones serving the six vertical zones and podium.

The crown of this magnificent tower will be the marquee and defining element for the TRX development. It is adorned with super-clear glass triangulated and folded to create dramatic and effective reflections during the day and distinctive glow during the night. The LED lights throughout the building change will reflect the colours of the ringgit.

“How befitting the area that used to house the leading public service members of Kuala Lumpur will now house the leading corporate citizens of Malaysia,” said Mulia head of marketing Christine Yeap.


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Challenges in buying old houses

There are many old houses in Malaysia and some make good investment.

By NST Property - October 24, 2019  

CAN old houses be a good investment? What are the common problems, hidden costs and benefits when purchasing such property?

There are a lot of old houses in Malaysia. In some parts of the country, the housing stock is far older. On average, owner-occupied houses outside of Kuala Lumpur have been around for more than 100 years. These are usually wooden houses in rural villages.

By contrast, newer houses and bona fide new constructed homes are common in Greater Kuala
Lumpur, Penang, Johor, Perak and Sabah.



 AN OLD HOME HAS CHARACTER


As a general rule of thumb, houses built after 1990 are considered new, and those built before 1920
are considered “old”. But house age is a subjective condition.

This term ‘old house’ covers properties from colonial mansions to faded terraced houses in well-established neighbourhoods.

Older houses may offer an interesting alternative to the pristine modern developments which are rapidly emerging across Malaysia.

“Buying a house is an exciting step, but buying an old house adds some increased complexity to your property purchase journey. Here’s why a second hand house may, or may not, be for you,” said PropertyGuru Malaysia, in an article entitled “The Simple Guide To Buying An Old House”.



BENEFITS OF AN OLD HOUSE


1) Cost savings

While some old houses are beautifully-maintained bungalows transacting for millions of ringgit, there are still many which offer more affordable prices.

PropertyGuru said faded old houses can offer potential buyers significant cost savings, giving them a more affordable option than pristine new properties.

2) Better return on investment

There’s low cost involved when buying old houses, and this provides a substantial potential for return on investment. After buying an old house, spend a bit of money to turn it into a well-manicured home to bring in significant financial rewards in years to come.

3) Transaction Time

It takes a short time to buy and own an old house or a property in the secondary market. You can own the property after a few months of completing the deal and do whatever necessary to upgrade it, rather than wait three to four years to get the keys for a new property from the developer.

4) Buying an old house on prime land

Land is scarce in prime areas and more expensive, so buying an old house in can be a good deal although it may require some repair works. But make sure you know the neighbourhood and that it is in a desirable location.

Older houses may offer an interesting alternative to pristine modern property.-Courtesy of Propertyguru


 

CHALLENGES THAT COME WITH BUYING AN OLD HOUSE

1) Non-stop repairs

Old homes can require a lot of work to make it safe for the family. You may need to fork out a bit of money before you move in to get this done.


2) Hidden faults

Old houses have faults like hidden leaks in pipes, old wiring, water filtration issues, roof leak and rotting timbers. “There are some of the major problems which could be hidden from the sight,” said
PropertyGuru.


3) Hazardous materials

PropertyGuru said renovation work can reveal some unfortunate truths, and one of them is that older homes can be built with hazardous materials.


“Lead-based paint and asbestos are two of the more frequent challenges found in older homes built before a certain period. While asbestos is not illegal for use in housing in Malaysia, owners should be aware of the significant health risks it poses. You may need a professional team
to help replace these materials,” it said.


4) Sudden cost to incur

There is possibility of spending more than you expected on repairs and renovation. It will be a while before you see some significant improvement in the value of the property with all the money spent.


5) Pest infestations

Imagine moving into your newly-acquired old home and finding rodents and cockroaches that had made your home theirs long before you moved in. You will have to call pest control to get rid of them before you can enjoy your new property.


6) Mold

You are going to get a headache or bad migraine every now and then if there’s mold in the property after you have moved in. Mold remediation can be very expensive, but technology has come a long way and make sure you get the best method to remove it. It would cost a lot to remove the mold and
hopefully it is a one-time investment.

“The idea of financial return is obviously a big part of the pros and cons of buying an old house. If you’re purchasing a house in a desirable area for RM1 million, renovating it for RM500,000 worth of your time and effort and selling it on for RM2 million at the end... you can see why some people might be tempted by this equation.

“Of course, an old house is also a great place to make a new home. So, the financial return in that case might be more of a long-term investment bonus,” said PropertyGuru.

It advises those looking to buy an old house to do a survey on the property before committing to a purchase, particularly if the house is in a state of disrepair.


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The Peak — luxury amid natural grandeur

By Sharen Kaur - Published in NST Property on October 24, 2019  

BERJAYA Land Bhd (BLand) is selling the remaining freehold bungalow lots at The Peak @ Taman TAR in Ampang Jaya, Kuala Lumpur and is capping their price at RM15 million each, says senior general manager of properties marketing Tan Tee Ming.

BLand launched The Peak more than a decade ago with 88 bungalow lots, priced from RM1.7 million to RM12.7 million, or RM150 to RM268 per sq ft (psf).

The Berjaya Corp Bhd subsidiary has to date sold 73 lots in the low-density guarded-and-gated (G&G) development.

According to Tan, the majority of the buyers are industry captains.

The Peak is sited on a 27.1ha freehold development with 88 carefully-gazetted bungalow lots of 8,624 to 71,944 sq ft. These ready-to-build lots allow buyers the freedom to turn their dream home
into a high-value property.

The park at The Peak -courtesy of Berjaya Land

“We have 15 bungalow lots left to sell. They are bigger lots and we are trying to cap the price at RM15 million each or around RM300 psf. We are confident of selling the remaining lots, despite the current market conditions.



“The Peak is one of few last G&G developments in the prestigious neighbourhood. G&G is a successful development type. Malaysians like G&G because of security and its concept,” he told NST Property.

Tan said The Peak is an elite sanctuary for families, a much-coveted address for those who desire a luxurious home amid “nature’s grandeur”. It is exclusive with private road access to the enclave.

The Peak’s grand entrance.-Courtesy of Berjaya Land

“It is rare to find a development in Kuala Lumpur that is surrounded by greenery and located in a hilly area. Those who bought land at The Peak, they are slowly coming in to build their homes. In fact their investment in the land have increased a lot since the day they bought it,” he said.

Strategically located within a pristine green lung at Taman Tun Abdul Razak and against the undulating landscape adjacent to the Ampang Forest Reserve, The Peak offers spectacular views of Kuala Lumpur city skyline and Kelab Darul Ehsan Golf & Recreation.

There are International School Kuala Lumpur, Ampang Puteri Specialist Hospital and Ampang Point shopping mall nearby the development.



In addition, the project is close to business and financial institutions, restaurants and many more within the radius of a 15-minute drive.

The Peak’s gateway into the G&G community is impressing. The grand entrance assures uncompromised attention to each and every resident’s privacy and safety with 24-hour CCTV surveillance, intercom system and regular security patrols.

NEW LAUNCH IN SHAH ALAM

Tan said BLand is launching its next project, Timur Bayu Residence, in Shah Alam, Selangor.

The high-rise duplex condominium project has a gross development value (GDV) of RM330 million, he said.



“We are selling bigger units ranging from 1,300 to 1,800 sq ft. For the indicative selling price, we hope to break the RM500,000 mark.”

Timur Bayu also comprises landed villas with GDV of more than RM300 million.

The project is located on 3.4ha land within Berjaya Park (formerly known as Berjaya Industrial Park) near Bukit Kemuning Golf & Country Club.

Berjaya Park is an integrated residential, commercial and industrial township that is easily accessible via several highways including Kesas Highway, North-South Central Link, North-Klang Valley Expressway and Federal Highway.

Previous residential developments in Berjaya Park include Hazel, Hazel 2, Aspen, Mulberry and Maple, which were all sold-out.

BUILDING SMART AFFORDABLE HOMES IN MYANMAR

BLand was recently awarded a public housing and mixed development project in Yangon, Myanmar, which could generate a GDV of RM2.63 billion.

In a filing with Bursa Malaysia, the group said the contract was awarded by the Yangon Region government.

The 74.05ha project comprises 14 parcels of mixed development which will include affordable housing, mid- to high-end condominiums, shop houses, retail spaces, the farmers market, community hall, schools and infrastructure, and will be built over three phases.

Apart from 10,000 residential units, the project will have commercial space with about 1.2 million sq ft for retail. BLand is inviting entities, such as hospitals and international schools, to take up the space.



The project, which is located about 40 minutes from downtown Yangon, is reportedly expected to take off early next year.

“Based on the preliminary plan of the proposed development, the estimated GDV is about RM2.63 billion,” said BLand.


Yangon Region Chief Minister U Phyo Min Thein said the public-housing portion of the Dagon Seikkan Smart City District project is expected to provide homes for 30,000 civil servants who are retiring next year.

The smart-city project initially started as a government effort, but a decision was made to involve the private sector to speed it up.


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YTL's Tan Sri (Dr) Francis Yeoh receives his knighthood from Her Majesty Queen Elizabeth II

 YTL Group Executive Chairman, Tan Sri (Dr) Francis Yeoh has been conferred the honorary British award of Knight Commander of The Most Excellent Order of the British Empire (KBE) by Her Majesty Queen Elizabeth II for services to UK-Malaysian bilateral relations.

  The award was presented by His Royal Highness Prince Charles at his official residence at Clarence House on 13 October 2019.
  Yeoh was previously conferred with an honorary Commander of the Most Excellent Order of the British Empire (CBE) by Her Majesty Queen Elizabeth II in 2006 in recognition of his substantial contribution to economic relations between Malaysia and the United Kingdom, and to the UK economy.
  In recent years, Yeoh has received numerous honorary awards by foreign dignitaries. In 2018 he was bestowed the Order of the Rising Sun, Gold Rays with Rosette by His Majesty the Emperor of Japan and in the same year the Italian government conferred upon him the honour of Grande Officiale of the Order of the Star of Italy.
 

  YTL's bilateral relations with the UK began with the Nucleus Hospitals project in 1989. Built with a British Aid grant to the Malaysian Government, the YTL Group has had a track record of successful engagement with the UK.
  Since 2002, the YTL Group has been the largest Malaysian investor in the United Kingdom with the acquisition of Wessex Water, one of the 10 Water and Sewerage Companies (WASCs) in the UK. Over the past 17 years of the YTL Group's ownership, Wessex Water has consistently been rated as one of the best performing WASCs by OFWAT, the UK water industry regulator, and three time winner of the Queen's Award for Sustainability.
  More recently, YTL Hotels has developed a portfolio of luxury hotels in the UK. The first, the Gainsborough Hotel in Bath, won the AA Hotel of the Year, England, 2017/2018 and was voted number 3 in the UK in the Condé Nast Traveller Readers' Choice Awards 2019. The newest property in the portfolio, Monkey Island Estate, has already received accolades for the quality of the hotel and its stunning landscape and just 6 months after its opening has been listed by the UK Sunday Times as one of the top 100 British hotels.

  The Group's Filton development project in Bristol is about to launch its first residential offering on the site of the former Filton airfield, a 380 acre site that was the birthplace and home to the Concorde jet. The mixed use development when completed will comprise over 3,000 homes as well as over 2 million square feet of commercial and mixed use spaces including a 16,000 seat arena that will be the largest indoor arena in the South West of England.
  Speaking after the ceremony, Yeoh said he felt humbled and honoured by the award which he attributed to the hard work of all the great employees in the YTL Group both in the UK and Malaysia.

   Yeoh thanked Her Majesty, HRH Queen Elizabeth II for the honour and conveyed his appreciation for the Government of Malaysia, under the leadership of Prime Minister Tun Dr Mahathir Mohamed and shared this honour with the country.
  "I would like to thank my family - my late father, my mother, my siblings, my late wife, my children and grandchildren for their support. My family has been my pillar of support and their unconditional love has kept me going.
  "Most important of all, I thank our Lord Jesus Christ who has guided me and given me every blessing. I give Him all the glory and all the honour," he said. (Story and pix courtesy of YTL Group)

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More foreigners expected to buy high-rise units in Johor

By NST Property - October 17, 2019 

THE Johor property market could see an increase in transactions for high-rise residential units next year as foreigners will be allowed to buy properties worth RM600,000 and above in urban areas.

Experts said the government’s move to reduce the pricing threshold from RM1 million will open the floodgates for foreign buyers, especially those from Singapore.

Tropez Serviced Residence @ Tropicana Danga Bay is fully sold. Pic source: Tropicana

 A property worth RM600,000 would cost only S$197,000. This is considered cheap when compared with neighbouring countries, they said.

“There are Singaporeans who are finding it too costly to live in their own country. They may consider
relocating to Johor. We think the more popular choice would be Danga Bay since it is a prime area and a mere 10-minute drive from the Johor-Singapore Causeway,” said a property market consultant.

 An ongoing project in Danga Bay which could benefit from this move is Tropicana Corp Bhd’s Tropicana Danga Bay mixed-integrated development.

This RM8.5 billion project spans 14.9ha. Phase 1, called Tropez Serviced Residences, offers apartments ranging from 463 sq ft to 1,798 sq ft.

“Singaporeans are keen to buy houses in Johor, but they are not willing to spend more than S$300,000. Most of them are renting in Johor. Tropez is their preferred choice because it is centrally located,” said the market consultant.

Finance Minister Lim Guan Eng said last Friday the lower threshold price of RM600,000 for foreigners was expected to reduce the overhang of condominiums and apartments totalling about RM8.3 billion.

The total residential overhang was valued at RM4 billion at the end of 2014 and this snowballed to RM29.7 billion by the end of last year, according to the National Property Information Centre
(Napic).

Condominiums and apartments accounted for 43 per cent of the overhang. Bank Negara Malaysia and property players have warned about a housing glut in cities such as Johor Baru.

Certain quarters, including the Real Estate a Housing Developers Association (Rehda), had earlier appealed to the government to reduce the pricing threshold of properties for foreigners.

Last month, Johor’s Housing, Communication and Multimedia Committee chairman Dzulkefly Ahmad said the state government was considering lowering the RM1 million threshold for foreigners in a bid to clear 51,000 unsold units in the state.

He had said houses priced from RM600,000 accounted for 70 per cent of unsold properties in Johor.

The government had also unveiled the Home Ownership Campaign (HOC) early this year as an initiative under the National Housing Policy 2.0 to deal with the property overhang and to boost the lagging housing sector.

Up to 21,000 property units worth RM13.44 billion had been sold under the HOC, surpassing Rehda’s six-month target of RM3 billion.

The HOC has been extended to Dec 31.

ADDRESSING THE GLUT

Knight Frank Malaysia said there is a shift in focus in the 2020 Budget from house buyers to developers in addressing the residential property overhang.

Generally, Malaysia has a higher distribution of unsold, completed high-rise residential properties above RM600,000 at 53 per cent compared with those below RM600,000 (47 per cent), said managing director Sarkunan Subramaniam.

“It may be an immediate remedy for the overhang situation. However, there are no rules that foreigners must buy from developers, like in Australia. Such rules could be implemented to avoid creating stiff competition in the secondary property market.

“However, the property overhang is attributed to various factors such as mismatch of products and location rather than pricing alone. Some units remain unsold due to their less favourable locations.”

PropertyGuru country manager Sheldon Fernandez said the move to reduce the foreign ownership threshold from RM1 million to RM600,000 is an interim measure to address the residential overhang in the country.

However, domestic sentiment must be balanced against the short-term benefit of reducing the oversupply, as external intervention is not an ideal solution, he said.

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Lagoi Bay, Treasure Bay Bintan a prime destination

By Sharen Kaur - Published in NST Property on October 17, 2019

BINTAN Island in Indonesia is one of key investment destinations for Malaysian investors in the Asia.

The luxury pool villa at Holiday Villa Pantai Indah on Bintan Island is a major attraction among international holidaymakers. - Pic courtesy of Holiday villa

It is close to the borders of Singapore and Johor Baru.

Just 45km south-east of Singapore, Bintan is a sought-after destination for holidaymakers.

The government designated the entire northern coast of the island for tourism, which includes 17,500ha parcel of land, an area 35 times the size of Sentosa Island in Singapore.

There are two key areas in Bintan that are being developed currently, namely Lagoi Bay and Treasure
Bay Bintan, and both have Malaysian investors.

Treasure Bay Bintan is a 338ha integrated resort city, a project by Malaysian hospitality investment and destination development company Landmarks Bhd, an associate company of Genting Bhd.

The project, which has a gross development value (GDV) of over RM2 billion, started more than
two years ago. The concept of the development is wellness, culture and leisure (preventive healthcare themes) with its master plan integrating tourism, wellness, culture, leisure, residential and commercial real
estates.

There were reports that Landmarks had planned to undertake the project jointly with United States-based healthy living and luxury spa vacations provider Canyon Ranch, but the deal was aborted
in 2016.

Canyon Ranch had announced the proposed Canyon Ranch Bintan health and spa facility in June 2014, although there was no announcement by Landmarks on the joint venture.

The US firm said the wellness resort development would consist of 64 hotel suites and 64 villas, arranged in compound-like configurations of one to three units each. Each villa was to be appointed with luxurious finishes, private fitness area and lap pool as well as service quarters.

Villa sales were to have started in October 2014 and each would have cost between S$3.5 million and S$6.5 million (RM10.68 million to RM19.82 million).

In 2017, Landmarks chief operating officer Fong Chee Khuen said the group planned to have eight to nine hotels surrounding its iconic 800m long crystal water lagoon covering some 6.07ha which has
opened.

Fong said Landmarks had signed up with Mercure, Ibis, Canyon Ranch and Chiva’som for Phase 1 of the project and was in talks with another five international brands, with two to three of the
discussions in advanced stages.

He said Landmarks had invested about RM800 million to develop the project as at 2017, including RM700 million to acquire the land.

The Bintan development was funded by cash, mainly generated from the RM1.2 billion gains from the disposal of some assets like Teknologi Tenaga Perlis Sdn Bhd and Datai Langkawi.

MALAYSIA’S PRIDE IN BINTAN

Ipoh-based developer Superboom Projects Sdn Bhd is developing The Haven Bintan in Lagoi Bay.

The company’s chief executive officer Peter Chan said the project had garnered strong interest from foreign investors.

According to Chan, there are several investors currently exploring opportunities with Superboom Projects to build within The Haven Bintan.

“There are investors talking to us. They include institutes of higher learning and wellness operators. There are also several hotel operators talking to us to operate the six-star hotel that we plan to develop in Phase One. We hope to sign a deal in 2020,” Chan told NST Property.

The Haven Bintan sits on a 25.8ha site and has an estimated GDV of over RM4 billion.

Last year Superboom Projects awarded a US$288 million (RM1.21 billion) construction contract to China’s Yunnan Construction Investment Holding Group and Indonesia’s PT Total Bangun Persada to build six 26-storey towers of condominium suites, a 250-room six-star hotel and a convention
centre with a capacity of 3,000 in four phases.

The final few phases of The Haven Bintan will include a commercial centre with medical facilities, restaurants and retail.

“There will also be 32 private villas,” said Chan.

HOLIDAY VILLA SHINING IN BINTAN

Holiday Villa Hotels & Resorts, founded by Tan Sri Azman Shah and his wife Puan Sri Mavis Masri, is managing Holiday Villa Pantai Indah Bintan Island (pool villas) located in Lagoi, north of Bintan Island for a Singapore-based group.

Holiday Villa Pantai Indah is sprawled across 13ha of lush tropical land and flanked by stunning seaside views.

It has a total to 99 private pool villas.

The soft opening introduced 40 private villas that comprise a private swimming pool with one and two bedrooms. Fully furnished like a stylish private home, each villa is designed to offer complete privacy and is a short walk to the beach.

In the first quarter of 2017, Holiday Villa Pantai Indah launched another 50 private villas.

“Bintan Island is the ultimate destination for every holidaymaker, honeymooners, adventurer seekers and those looking for exclusivity and luxury retreat. The island possesses rich hinterland, culture and
historic sites that make it different from other beach destination. We are targeting expatriates, residents and corporates from Europe, Singapore, Indonesia, India, China and Malaysia,” said Nina Karina Azman, director of corporate affairs at The Holiday Villa Group.

Nina told NST Property the group was looking forward to the opening of a new international airport in Bintan that will spur demand for hotel rooms in the island.

It was reported that the US$150 million airport project is expected to start operation next year with a 3,000m runway. The airport terminal will be connected to a ferry terminal which will service Singapore and Batam.

Nina said visitors from Malaysia currently fly to Batam and take a 20 minute ferry ride from there to Bintan Island.

Bintan is set to surpass its 2018 visitor numbers of over one million with key new developments and sporting events.

The island is home to a variety of independently owned and operated resorts, recreational facilities and attractions.

Nina said one of key attraction is the four designer courses by Ian Baker Finch Course (Bintan Lagoon), Jack Nicklaus Course (Bintan Lagoon), Greg Norman Course (Laguna Bintan) and Gary Player Course (Ria Bintan)

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Kamarulzaman is the new CEO for KTMB

 FILE PIX of KTMB trains

By Sharen Kaur

  Datuk Ir. Kamarulzaman Zainal has been appointed as the new chief executive officer (CEO) for the country’s largest rail service Keretapi Tanah Melayu Bhd, effective October 21, 2019.

  This confirms a report by New Straits Times last week that Kamarulzaman had been tipped to helm KTMB.

  He replaces Mohd Rani who stepped down last month after two years at the helm.

  Kamarulzaman, aged 56, was appointed to the KTMB board on August 1 2016.

  He was senior vice president of industry intelligence at the Malaysian Industry-Government Group for High Technology (MIGHT).

  He will be tasked to help turn around the loss-making national railway company.

  “Let’s wait and see what Kamarulzaman can do for KTMB. He will be attending the Asean Railway CEO’s conference in Bangkok next week where he will be meeting leaders in railway from around the world. It’s a great start for him,” said a person close to him.

  KTMB, owned by the MOF, has been undergoing a restructuring exercise to return to profitability.

  The company has lost more than RM3 billion since it was corporatised in 1992.

  KTMB did post a net profit of between RM9 million and RM15 million from 1993 to 1995.

  The company started to bleed again from 1996 and has been trying for almost two decades to turn around its fortunes.

  Despite the many changes to its top management and injection of funds by the government, KTMB has been unable to turn around.

  An audit conducted in 2011 showed that KTMB had incurred RM100 million in losses, which almost tripled to RM280 million in 2012. In fiscal year 2015, KTMB suffered a net loss of RM226.25 million.

  Low fares are among the main contributing factors that led to KTMB racking up losses.

  The other main contributing factor was KTMB’s high operational cost in maintaining its rail coaches and infrastructure, plus high electricity and diesel consumption, and manpower costs.

  As a result of the deteriorating conditions of KTMB’s rolling stock, coaches and infrastructure in stretches along the east coast and south, nearly 40 per cent of its operating expenses is spent on manpower costs.

  KTMB’s former CEO Sarbini said in early 2017 that the company was technically bankrupt.

  He said that for every ringgit the company made, 80 sen went to staff cost.

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Wessex Water's £1.5b Plan

By Sharen Kaur

LONDON: Wessex Water, which is fully-owned by the YTL Group via YTL Utilities (UK) Ltd, expects to invest £1.5 billion (RM7.72 billion) from next year to 2025 to expand its business and lower the bills for customers, says chief executive officer Colin Skellett.

Wessex Water won a concession in 1989 from the United Kingdom government to supply clean and treated waste water from a 10,000 sq km area in southwest England for a minimum of 25 years.

It supplies drinking water and sewerage services to more than 2.8 million customers in Bristol, most of Dorset, Somerset and Wiltshire and parts of Gloucestershire and Hampshire.

Skellett said Wessex Water was committed to improving the health of more than 643.73km of rivers in the region, making substantial cuts to the number of accidental pollution and having a clear ambition to be a carbon-neutral company.

He said the company would invest in three main areas and the first was to improve the quality of water supply and its waste water treatment facilities.

"The second area is to service new developments. There are a lot of developments in Bristol. We need to provide sewers. We are doing tunnelling for up to 15km, and the cost to do this is £45 million," Skellett told the New Straits Times during a plant visit, here, recently.

Skellett said the third area was to replace and renew the asset base, adding that the company aimed to further reduce leakages that were already at the lowest levels.

He said there would be a lot of investments to remove pesticides (including compounds used to control weeds and insects) and neutrons from the water while improving the environment.

Skellett said in some areas, traces of the pesticides used in farms, roads, or gardens could find their way into local watercourses and sources used for water supply.

This is mostly due to rainwater washing them off crops or plants and out of the soil.

He said Wessex Water was working with local farmers to help manage the use of pesticides to reduce the possibility of traces entering water sources.

"Between 2015 and this year our total investments in the three principal areas are estimated to be £1.2 billion. The investment will be higher in the next five years as we are required to deliver more services, but we are still finalising the £1.5 billion to be spent over the next five years," he said.

Skellett said since YTL Corp Bhd took over the debt-laden Wessex Water in 2002, the company had been expanding progressively.

Wessex Water was bought by Enron, an American company, for US$2.4 billion (RM10 billion) in 1998 and placed in a newly-formed subsidiary Azurix.

Following Enron's collapse, Wessex Water was sold to YTL Power International in 2002.

YTL Power acquired 100 per cent of Wessex Water for £1.24 billion (RM6.69 billion at the time).

YTL Power had paid £545 million in cash and assumed Wessex Water's debt of £695 million.

"There were 26 bidders for Wessex Water when it went bust and YTL Corp was the only Malaysian company that submitted a bid. The rest were bankers, private equity firms, as well as investors from Italy and France.

"YTL Corp won the bid as it was able to complete the deal quickly and it offered a fair price. Within few years of Malaysian ownership, we got Wessex Water back on track," he said.

YTL Corp, as at March 31 this year, was 49.68 per cent-owned by third party shareholders and 50.32 by Yeoh Tiong Lay & Sons Family Holdings Ltd.

For fiscal year ended March 31 this year, Wessex Water's turnover increased by £7.1 million, or 1.3 per cent, to £547.7 million, while underlying operating costs rose by £8.5 million, or 4.2 per cent.

Its pre-tax profit excluding exceptional items fell £16.6 million, from £151.3 million last year, to £134.7 million. This was mainly due to increases in retail services, site operations and environment agency charges.

Profit for the year was at £110.2 million versus £133.5 million in the year before and total assets worth were at £3.9 billion.

Skellett said for the financial year ending March 31 next year, Wessex Water profit was likely to remain flat or improve slightly.

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Sunway eyes UK student housing market

Lost World of Tambun is Sunway Group’s theme Park in Ipoh, Perak.Courtesy of Sunway City Ipoh

By Sharen Kaur - Published in NST Property on October 10, 2019 

SUNWAY Group founder and chairman Tan Sri Jeffrey Cheah says the group is looking out for opportunities in the United Kingdom, especially in the student accommodation market.

He said it is a good time now to tap the UK property market.

According to Cheah, the Sunway group is buying three buildings for student accommodations in Bristol and Sheffield.

“Student accommodations are the way to go. We are gearing up for that, hopefully. I don’t have a crystal ball, but if we work hard, we will succeed. In terms of education, the UK gives some of the best education,” he told host Christine Tan during an interview on CNBC’s Managing Asia programme.

Cheah said Sunway has bought, through a fund in which the group has a big say, 97 properties of which tenants are all from the British government, giving a reasonable return.

He also believes that China will be the biggest market for Sunway in foreign land.

“China has brought 700 million people out of poverty. That has never happened in the world. No one has done it and they have done it. So I have great confidence that under its system and good leadership, China will be the No.1 in the world, in all forms.”

Cheah said had he studied in a Chinese school during his younger days, Sunway Group’s investment in China would have been bigger than the current size.

“My father said (at that time), if you don’t go to an English school, you will not get a job. So I went to an English school, but now I feel a loss with the Chinese. If I spent six years in a Chinese school, today my investment in China would have been much, much bigger.”

Tan Sri Jeffrey Cheah Sunway Group founder

BUILDING ‘HARVARD OF THE EAST’

Sunway Group aims to build Sunway University into a “Harvard of the East”.

It is a tall ambition, especially when there is competition here in the region, said Cheah, but he feels that it is possible.

“I have always set very high benchmarks. If I don’t set high benchmarks, my people may think that we are so good. So, I say ‘Harvard of the East’. Now, of course, we are linked with Cambridge and Harvard, and universities always compete.

“I tell my friends, competition is always good and it’s always there. You can’t stop it and it brings out the best of all of us. I want to set the foundation now, but I don’t think it will happen during my lifetime,” he said at the interview.

Cheah hopes Sunway University will become a top 100 university in the world in 10 to 15 years from now.

“If you go to Harvard and Cambridge, a lot of people asked me, ‘How do you get to link up with these people?’” We have to do what we have to do. They will check you left, right and centre... your integrity, reputation, who are we and who are we tying up with. They are all now very satisfied with the relationship, and we can develop a much, much stronger relationship... they will help us. They’re happy to impart knowledge to our people. I tell my people that I want to learn from the best,” he said.

Sunway Group founder and chairman Tan Sri Jeffrey Cheah with CNBC’s Managing Asia programme host Christine Tan at The Banjaran Hotsprings Retreat in Ipoh. Courtesy of CNBC

RE-INVESTING FOR GROWTH IN MALAYSIA

Cheah believes in re-investing in all of the group’s assets and adding value without putting pressure on profit margins.

He cited The Banjaran Hotsprings Retreat in Ipoh where the operator could recoup the investment in upgrading the property via higher room rates.

“Teeming costs money. We tie ropes on the walk track, (put) a bit of artificial rock here and there to make it look real, and then landscaped it very well. These are extra, extra things. But when people come, they say, ‘wow’. When you charge them a higher price, they say, ‘OK, it’s fine’.

“Like the Sunway Lagoon theme park, you have to continuously re-invest. You won’t like to go back to a theme park when you’ve seen and played with everything. So, we need to upgrade and put new rides and attractions, and that’s what we are doing,” said Cheah.

He said profit margin had dropped from more than 20 per cent when the group started property development, to between 10 and 12 per cent currently.

“Sometimes, what we do in business is affected by the external environment. Right now, there’s a trade war. Trade war is one thing, but then business confidence is not there. Business people or fund managers don’t like uncertainty. There’s uncertainty out there. For the world, there’s the trade war. You don’t know all this geopolitics is going to cause a lot of headache.”

Chead said as far as Malaysia is concerned, businesses are looking at the government’s promises. “We like to see things happen, but unfortunately, it’s slowly happening.”

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