YTL's YES initiative for the nation

Sharen Kaur

  YTL Power International Bhd’s 60 per cent-owned YTL Communications Sdn Bhd is working on several initiatives in efforts to alleviate the nation, amid the current difficult times due to the outbreak of the Coronavirus (Covid-19).

Image courtesy of YTL

  One of the initiatives the company has introduced is to zeroise all phone calls for its mobile 4G brand "YES" to emergency helplines.
  YES, which last year emerged as the second country in the world and the first in Asia to deploy the 5G-ready Terragraph network, is also reminding Malaysians to avoid being outdoors during the Restricted Movement Order (RMO), implemented on 18th March nationwide to curb the spread of COVID-19.

  The 4G mobile operator has updated its operator signal bar which now displays ‘Y E S StayHome’ telling all Malaysians to be responsible for their well-being and to stay at home.
  "Today and until the end of the RMO, YES stands with all Malaysians as one by championing the two key initiatives that will make a difference for the better. We are changing the brand name with spacing as a reminder for the need for social distancing. YES is doing the best in its ability to keep Malaysians connected and hopes everyone will stay safe and be responsible for one another," said YTL in a statement.
  YTL said that as Malaysia’s first and only all-LTE service provider, YES has the responsibility to ensure the continuity of operations to serve the nation during this trying time, whilst maintaining constant communication with YES subscribers on its online service.

  YES, which was launched on 19th November 2010 as a WiMAX provider is the first and only 100 per cent 4G mobile operator in Malaysia. It is also the country's first operator to offer voice-over-LTE (VoLTE) service for high definition and crystal clear calls winning innovation awards for its services annually.
  In July 2019, YES deployed the world’s largest Terragraph (gigabit-speed) network in Georgetown, Penang and is eyeing more cities in Malaysia. The Terragraph network is the first millimetre wave network and the first large-scale IPv6 network — the two foundations to support 5G capabilities - of its kind in Malaysia. Using Terragraph, YES can deliver broadband services more than (100Mbps) to businesses and hotels in George Town.
  "This year YES continues to drive the best in mobility with the launch of Malaysia’s first and still only Unlimited HD Prepaid add-on," the firm said.

Effects of Covid-19 on local property market

People are more cautious with their spending due to Covid-19. -- Pix from Pixabay

By NST Property - March 20, 2020 

THE outbreak of the Covid-19 has significantly reduced the average sales of businesses across multiple industries and will play negatively on the local property market, says a senior real estate marketing consultant.

"Many developers are already struggling to keep their heads above water. With daily updates, new information, and more confirmed cases, the long term effects of Covid-19 are simply unknown," said the consultant who wish to remain anonymous.

"Ultimately, it is true that times are tough. People are moving away from buying luxury and big ticket items including property.

"They are saving in anticipation of worst times ahead. But as our history will show, the market will recover. Things will eventually bounce back but it may take a longer time as the world economy is in a crisis," he said.

Early this year there was a neutral outlook for property prospects in 2020, with glimmers of opportunity amid the challenging market environment.

Measures were introduced in 2020 Budget to address specific issues in Malaysia’s property landscape.

Property developers and home buyers, including investors breathe a sigh of relief in January after Bank Negara Malaysia (BNM) decided to reduce the Overnight Policy Rate (OPR) to 2.75 percent - the lowest since 2011.

The OPR is an overnight interest rate set by BNM. It is a rate a borrower bank has to pay to a leading bank for the funds borrowed.

The OPR has an effect on employment, economic growth and inflation. While changes to the OPR have minimal impact upon home loan rates, a cut of 25 basis points translates to a fractional reduction in loan installments, and is still a silver lining for industry players.

The Covid-19 outbreak will play negatively on the local property market, says a senior real estate marketing consultant. -- Pix from Pixabay

Meanwhile, PropertyGuru Malaysia said last month that it does not expect the residential property sector to be as badly impacted as tourism or foreign direct investments by the prolonged Covid-19 outbreak.

The firm said that even though there may be a decline in foreign purchasers such as from Hong Kong and China and a delay in projects throughout the supply chain following the Covid-19 outbreak, Malaysia’s property market would not be directly impacted.

But real estate experts and analysts now have different thoughts about the property market following the wide spread of Covid-19.

Speaking to an analyst on condition of anonymity, he said "rough times" are ahead for developers.

"If you look at filings with Bursa Malaysia, many developers posted lower earnings and there are some companies which incurred losses from their operation.

"They are not launching as aggressively as they did before. The numbers and the value of properties they are launching have reduced year-on-year since 2017. It is quite likely that many developers will not meet their sales targets this year as they downsize their property launches with new events in the market place," said the analyst.

The analyst said developers are putting their bet on another round of Home Ownership Campaign (HOC). They hope that the government will introduce HOC 2020 when the situation has cleared up on Covid-19.

HOC 2019 cleared 31,415 residential units developed by federal and state governments, and private builders, valued at a total of RM23.2 billion as at November 2019, surpassing the initial target of RM17 billion.

However, according to sources close to the Real Estate and Housing Developers' Association Malaysia (Rehda), the final value of total sales from HOC 2019 could exceed RM30 billion.

"The last I heard was the final numbers are being tabulated, to include the sales achieved in the month of December. The word I got is that the final sales could surpass RM30 billion.

"This is good and it shows that people are willing to buy a property which they can afford. A lot of developers offered between 10 per cent and 30 per cent discounts, including freebies, which is a good thing as they got the buyers in.

"This trend may repeat with HOC 2020. Developers are keeping their fingers crossed." the analyst said.

Tracking illegal real estate agents in Malaysia

BOVAEP tracking down illegal real estate brokers -- Pixabay Photo

By NST Property, March 19, 2020 

THERE are over 100,000 real estate agents operating without a licence in Malaysia and the Board of Valuers, Appraisers, Estate Agents and Property Managers (BOVAEP) is tracking them to protect the local property market.

BOVAEP and the police recently conducted a joint raid on a real estate cooperative firm carrying out illegal estate agency practice.

This move is indeed timely, said the Malaysian Institute of Professional Estate Agents and Consultants (MIPEAC) president Francis SP Loh.

"More than 50 real estate frauds are being reported every month as a result of illegal real estate brokers operating in the country," said Loh.

Loh said the number of illegal and unregistered real estate brokers are becoming more rampant despite strict laws governing the acting as an agent to buying, selling and renting of real estate.

Issues on illegal real estate brokers have become speckled with unregistered firms or persons involved in acting as an agent in the selling of Malaysian properties for a fee such as property marketing firms, travel agencies, proptech companies, MM2H companies, investor funds and foreigners, too, he said.

Foreign real estate agents or developers cannot sell property on their own in Malaysia.

They are required to engage a local registered real estate agent or firm to market any foreign properties.

There are more illegal real estate agents operating without a licence in Malaysia. -- Pixabay Photo

Loh said there are reported cases of foreign agents from countries such as Singapore, Hong Kong and Japan advertising Malaysian properties for sale, both locally and abroad; and foreign developers selling properties to Malaysians without getting BOVAEP approval.

He said buyers using the services of unregistered brokers are at risk of losing their money.

"Not only are these illegal and unregistered real estate agents and negotiators

profiteering through various fraudulent activities, they are also jeopardising the

professionalism and accountability of the real estate industry," he said.

Estate agency practices in Malaysia are governed by Valuers, Appraisers, Estate Agents and Property Managers Act 1981 (Act 242) where real estate agents must be registered while real estate negotiators must be certified by BOVAEP.

Recent legislative amendments to Act 242 (Part VIII, Section 30) states that any person who acts as an estate agent whether the primary or principal object of his business is estate agency or impersonates a registered estate agent is regarded as committing an offence and is liable on conviction to a fine not exceeding RM300,000 or to imprisonment for a term not exceeding 3 years or both and shall be liable to a further penalty of RM1,000 for each day during the continuance of such offence.

This also apply to any person who aids and abets in the commission an offence under this Act.

"MIPEAC urge the public to come forward and lodge reports with BOVAEP and the police on any activities undertaken by illegal real estate brokers to effectively curb the problem."

Genting halts worldwide gaming operations until March 31

Resorts World Genting will be closed temporarily from March 18-3. – BERNAMA photo

By Sharen Kaur - Published in NST Property, March 18, 2020 

Genting Malaysia Bhd (GenM) is temporarily closing its resort destinations in Malaysia and in the United States (US) until March 31, joining the growing list of gaming and entertainment centres around the world shutting their doors following the outbreak of the Coronavirus (Covid-19).

The casino giant is closing Resorts World Genting (RWG), Resorts World Awana, Resorts World Kijal and Resorts World Langkawi until March 31, following the Movement Control Order announced on Monday.

Prime Minister Tan Sri Muhyiddin Yassin announced a nationwide MCO starting March 18 until 31 due to the outbreak, which is enforced under the Prevention and Control of Infectious Diseases Act 1988 and the Police Act 1967.

In a statement, GenM said the closure encompasses all of its hotel facilities, food and beverage outlets, casino, Skytropolis Indoor Theme Park, entertainment facilities, attractions, shopping malls as well as retail outlets at RWG.

It said essential resort-based services such as security, Fire and Rescue Department, utilities and clinics will remain operational during this period.

RWG will resume operations from April 1.

GenM said all reservations during the period have been cancelled and guests may seek for a refund or change their reservation dates.

The same applies for reservations made at Resorts World Awana, Resorts World Kijal and Resorts World Langkawi.

Meanwhile in the US, GenM temporarily closed its two massive casinos - Resorts World Casino New York City (RWNYC) and Resorts World Catskill (RWC) - until further notice.

RWV posted on its website that after careful deliberation with New York State officials and it partners at the New York Hotel Trades Council, it has decided to temporarily close the resort for the health and safety of its workforce, patrons and community.

GenM also operates Resorts World Sentosa in Singapore, Resorts World Bimini in the Bahamas, and over 40 casinos including Resorts World Birmingham in the United Kingdom, among others.

Axis-REIT buys factory in Klang

Axis REIT to acquire properties worth RM140 million. (Photo source from axis-reit.com.my)

By NST Property - March 18, 2020 

Axis Real Estate Investment Trust (Axis-REIT) has completed the acquisition of a leasehold property within the Bukit Raja industrial zone in Klang, Selangor for RM37 million.

The property comprises 5.6-acre land with two blocks of detached factory and a double-storey office building. It was acquired from Lion Steelworks Sdn Bhd, a unit of Lion Corp Bhd.

The net lettable area is 149,605 sq ft. There is a 99-year lease on the property, expiring on 22 October 2088.

In a filing with Bursa Malaysia, Axis REIT Managers Bhd (ARMB), the Manager of Axis-REIT said the acquisition of the property had been completed on Tuesday in accordance with the terms and conditions of the Sale and Purchase Agreement dated 24 December 2019.

The acquisition is in line with the fund's investment objectives and to achieve growth in the net asset value (NAV) per unit of Axis-REIT, by acquiring high quality, earnings accretive properties with strong recurring rental income.

ARMB said last December that the property will be accretive to Axis-REIT’s distributable income and further strengthens it's portfolio of industrial properties.

It is expected to contribute positively to the earnings of the fund for the financial year ending 31 December 2020.

The occupancy rate of the property, which has an approximate age of 33 years is 100 per cent as at 24 December 2019.

Lion Steelworks is using the site to manufacture and distribute office equipment, security equipment and steel related products.

Now that the acquisition is completed, Lion Steelworks will lease the property and it shall pay advance rental to Axis-REIT for the first 24 months of the initial term, amounting to RM5.4 million. This is around RM225,000 monthly rental to Axis REIT.

The tenancy is for a fixed period of two years and five months from the tenancy agreement’s commencement date, with an option to renew for another two terms of one year each.

As of June 2019, the property’s net book value stood at RM2.6 million.

ARMB on acquisition trail this year

Axis REIT is Malaysia’s first real estate investment trust.

It was listed on Bursa Securities on August 3,2005 and has a diverse portfolio of 48 properties located in the Klang Valley, Johor, Penang, Pahang, Negri Sembilan and Kedah.

ARMB chief executive officer Leong Kit May said at a media briefing in January that the board is actively scouting around for properties.

She said ARMB aims to acquire RM140 million worth of properties to be added into the portfolio.

This includes Grade A logistics facilities and manufacturing facilities with long leases from tenants; retail warehousing for last-mile distribution; as well as office, business parks and industrial assets with potential for future enhancements.

ARMB had been focusing on getting industrial-type assets in the manufacturing and warehousing sector.

Leong said the company is bullish on industrial properties like warehousing, and foresee higher demand following the growth of e-commerce.

E-commerce growth means there will be higher requirement for warehousing and logistics space, she said.

"The logistics market is doing well. Port Klang reported a 10.7 per cent increase in activities in their twenty-foot equivalent units (TEUs) that they handled to about 12.3 million TEUs. We will also be looking at well-located retail warehousing and locations ideal for last-mile distributions,” he said.

Last month, ARMB acquired a property in the industrial area of Nilai, Negri Sembilan from K-Plastics Industries Sdn Bhd for RM50 million in cash.

The leasehold land with a gross floor area of 246,500 sq ft houses a single-storey factory with a double-storey office annexed. K-Plastics is using it to manufacture plastics and packaging products.

Analysts are saying the purchase of the Nilai property is an "attractive investment".

The tenancy has been fixed for a period of 10 years from the commencement date of the lease agreement with an option to renew for another five years.

The rental income for the property is RM277,096 per month f

rom the first year to the third year. From the fourth year onward until the sixth year, the rental will be adjusted to RM304,805.60 a month. It will be RM335,286.16 per month from the seventh year to the ninth year.

In the tenth year of the lease term, the rental will be RM368,814.77 per month.

As of December 2019, the property’s net book value stood at RM33.7 million.

i-City shaping up with better investor confidence in Selangor's golden triangle

I-Berhad executive chairman Tan Sri Lim Kim Hong showing the location of i-City in Selangor

By Sharen Kaur - Published in NST Property, March 16, 2020 

sharen@nst.com.my

I-Berhad is shaping up its i-City project in the heart of Selangor's golden triangle with a new wave of development and investment in Artificial Intelligence (AI) technology.

Executive chairman Tan Sri Lim Kim Hong told NST Property that in spite of a challenging market environment, I-Berhad will continue to invest in i-City because of strong investor confidence in the development.

The developer is also investing in AI technology, among others to launch a do-it-all super app, adding to the regional "super app" phenomenon.

Lim said the AI strategy for i-City is to boost the development which has the remaining 60 per cent of gross floor area (GFA) that has yet to be developed.

"This is a forward-thinking smart city. Apart from launching the super app, we are accelerating and enhancing the development with the Internet of Things features and a robust digital network. When we say we are going to do something in i-City, we will do it despite a slow economy. We have to invest and create exciting things and developments for the project to remain vibrant," said Lim.

The i-City development in Selangor’s capital city has remaining 60 per cent of gross floor area (GFA) that has yet to be developed. File Photo

I-Berhad chief technology officer, Ricky Lim said the super app would create an ecosystem where users would not need to use multiple apps. It saves phone space and frees users from having to look for different apps.

He said the app will be rolled out in stages to improve community smart living in i-City, an MSC status development.

The app is applicable for property owners, tenants, visitors, investors and the working population in i-City.

"There are currently a lot of apps in Malaysia for food delivery, transport, hotels, movie tickets, checking property launches, car parking, payments, and banking. This is where i-City is going and the project has started. We will integrate all those services into one app.

"Currently in i-City we have Central Mall i-City, Hotel Best Western i-City, over 4,000 residences, retail, offices, Sumurwang corporate tower and coming up next is DoubleTree by Hilton. The super app will unlock all services into one to make it easy for those who stay, work, shop and play in i-City. We will monetise these services so that the super app will be self-sustaining and allow us to re-invest," he said.

I-Berhad chief technology officer, Ricky Lim said the super app would create an ecosystem where users would not need to use multiple apps. PHOTO/SHAREN KAUR

He said the pilot project for the super app has started with the company's internal staff, who use the app for parking and for check-in using facial recognition, among others.

"From a technology standpoint it is not a big deal but from a developer's standpoint, it is a milestone. For the app, you need a lot of infrastructure and technology and this year alone, we have invested RM5 million. This is a testament to the fact that when we say we want to launch a super app, we have already spent the money and the investments will continue," he said.

He said, in line with the Golden Triangle vision, i-City's technology would be widely available.

"With this investment in technology, we can play a new game. You can't call yourself a Golden Triangle if you do not have the connectivity. Today, the Internet bandwidth in i-City is 400 gigabit, which is four times more than the Kuala Lumpur International Airport. We have dedicated internet access and telecommunication companies coming in."

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Riverbank Cove set for growth this year

An artist impression of an overview of Riverbank Cove in Manjung, Perak. Courtesy of RH Consortium

By Sharen Kaur - Published in NST Property, March 12, 2020 

sharen@nst.com.my

Perak-based developer RH Consortium Sdn Bhd, which aims to go public in the next three to five years is in talks with healthcare and hotel operators for its project, Riverbank Cove, in Manjung, Perak.

Riverbank Cove, which is situated at the river mouth of Sungai Tiong overseeing Pangkor Island has a gross development value of RM2 billion.

The plan for the 52-hectare development is to have residential and commercial properties, a healthcare centre, a boutique hotel, and student accommodation.

The company's executive chairman Ramelle Ashram Ramli said it is looking to open a branded boutique hotel with 80 to 100 rooms, and a confinement centre in Riverbank Cove.

"We want to build something different at Riverbank Cove and not the ordinary brick and mortar, which is why we have a hotel, to cater to the expatriate market and visitors, and healthcare. With Pangkor's duty-free status, there are more international tourists coming so we think a hotel will do well in our development," said Ramelle.

Ramelle told NST Property he hopes to sign an agreement with the hotel group in the third quarter, and with the healthcare operator by the end of this year.

RH Consortium has raised RM200 million via Sukuk issuance with Kenanga Investment Bank Bhd to fund Riverbank Cove.

Ramelle said the company has drawn down RM33 million for the initial phases of the development.

New property launches in Riverbank Cove

Ramelle is cautiously optimistic that the property market will bounce back, thus it is gearing up to launch new phases in Riverbank Cove this year.

He is also bullish that it will meet the revenue target this year.

The company is targeting RM30 million in revenue this year as it is just starting off the development. The revenue target for 2021 is to achieve close to RM100 million.

"I am very confident because Manjung is not an investors' market. Its real people buying there. The locals are buying for their children. We are currently selling the houses below market as we want to introduce people to our development. We want to launch Riverbank Cove with a positive start," said Ramelle.

There are six phases of development in Riverbank Cove, and about 10 per cent of the total land size has been allocated for green spaces.

About 10 per cent of the total land size in Riverbank Cove is allocated for green spaces. Courtesy of RH Consortium

Riverbank Cove will have four parks, four lakes and a 20-metre canal that flows through part of the development from Sungai Manjung.

The first phase of Riverbank Cove has a GDV of RM150 million and will offer a total of 557 residential units, to be developed in four sub-phases.

To date RH Consortium has launched the first sub-phase comprising 100 units of double-storey terrace houses, selling from RM290,000 to RM480,000 (corner units).

The houses, launched in October 2019 are about 60 per cent sold.

Ramelle said the company is launching the second and third sub-phases featuring a total of 350 townhouses in the third quarter of this year.

The townhouses will be selling from RM190,000 to RM220,000 each, he said.

An artist impression of the type of double-storey terraced houses available in Riverbank Cove. Courtesy of RH Consortium

The final sub-phase will consist of 107 units of double-storey terraced houses, priced up to RM350,000 each. The launch is expected to take place in the fourth quarter of this year.

"The units are slightly bigger than our first launch and have more finishings," said Ramelle.

Ramelle said the government has given approval for RH Consortium to launch the MyHome (private affordable ownership housing scheme) programme for Riverbank Cover.

He said the MyHome scheme will be an added advantage for Riverbank Cove as it will allow more people to purchase the houses.

Riverbank Cove has the "ingredients" for growth

RH Consortium group chief executive officer Hamzarul Hazmir Hamdan said the Manjung district is surpassing Taiping and Ipoh in terms of rental rate and sale price thanks to all the industries located there.

Manjung is home to TNB Janamanjung, Petronas oil terminal, Sapura Energy fabrication yard, shipbuilding companies, mineral companies who export their products through Lumut port, and Vale, a Brazilian iron ore firm.

"Because of these industries and mega projects in Manjung, there is a strong market for residential and commercial properties. We also anticipate robust demand for student accommodation as University Kuala Lumpur (UniKL) Manjung campus is located close to our development.

"Manjung is also covered under the northern corridor economic region and this is why we are putting a huge bet on it," said Hamzarul.

Hamzarul said the company is planning to also launch student accommodations this year.

RH Consortium plans to build two blocks of apartments with a total of 400 units and sell with a leaseback option.

Hamzarul said the units, with sizes ranging from 800 sq ft to 1,000 sq ft will be selling from RM280,000 to RM400,000.

"There is a ready market for students in Manjung, which means there is high potential to lease the apartments. UniKL has more than 2,000 students currently and they have plans to increase up to 5,000 students in the next three years," said Ramelle.

Hamzarul said future developments in Riverbank Cove will include gated and guarded projects.

"We plan to build terraced houses at a slight premium price. There will be a luxury cluster of semi-detached homes with their own internal park and high-end townhouses. These luxury residential offerings will be complemented with a 20,000 square feet clubhouse," he said.

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Johan hopes to get approval for RM127 million land sale in Puchong

An artist impression of Gravitas industrial building development in Shah Alam, which is now fully completed. Source from OSK

By NST Property - March 10, 2020 

Johan Holdings Bhd is having an extraordinary general meeting this month for shareholders to vote for the proposed sale of land in Puchong, Selangor for RM127 million to OSK Group, which it had intended to develop on its own in 2017.

The group had in October 2017 announced a plan to develop part of a parcel of land in Puchong where it owns a ceramics tiles manufacturing plant via its wholly-owned subsidiary Prestige Ceramics Sdn Bhd (PCSB).

PCSB had been operating the plant up until August 2017 when it ceased its operations as it has been bleeding losses for six years.

The site, measuring 10.9 hectares, has been vacant since then.

Johan said it had applied to the Sepang Municipal Council for a development order for the development of about 2.4ha of the land.

The first phase was intended to be a mixed development comprising serviced apartments and commercial projects, with a projected gross development value of RM364.4 million.

It said, the gross development cost, inclusive of revalued land cost, is projected at RM294.9 million, giving a projected gross development profit of RM69.5 million.

Last November, Johan said in a filing with Bursa Malaysia that PCSB inked a deal with Aspect Potential Sdn Bhd (APSB) for the proposed disposal of the parcel of land in cash and in kind.

As part of the deal, Johan will receive industrial properties in kind in Selangor that will generate additional recurring income for the group.

APSB is a wholly-owned subsidiary of OSK Property Bhd, which in turn is 99.93 per cent-owned by OSK Holdings Bhd.

Johan said APSB will pay for the land via a combination of cash totalling RM108 million, and payments in kind amounting to RM19 million.

The settlement in kind includes three units of three-storey terraced factories located at Gravitas, Shah Alam, and four units of retail lots (with car park bays) located at USJ One, Subang Jaya.

Johan intends to keep the factories and retail lots for investment purposes, to generate recurring rental income and for capital gain to the group in the event there is a demand for the properties at a higher sale price moving forward.

"The market outlook specifically on the commercial properties within Selangor was an improving trend. As such, the board expects that the demand and the take-up rate for these properties will appear positive moving forward," it said.

The factories and retail lots have a total market value of RM12.67 million and RM6.4 million, respectively.

Johan said the properties are strategically located in the relatively mature and established areas within Klang Valley.

Gravitas is located within an established industrial hub of Shah Alam. Within this locality, there are multinational companies, logistics companies, and manufacturers sited, coupled with the well-structured residential areas in the surrounding areas.

USJ One, on the other hand, is located at a fast-maturing commercial and industrial area within Subang Jaya. Commercial developments are seen within this area such as hypermarkets, Mydin Mall, serviced apartments, One City Mall, Riverdale @ USJ One Park and several other major developments.

"The board expects that the future demand for the properties to be encouraging premised on the strategic location, the internal design of the properties and the population surrounded within the localities of the Properties," said Johan.

The units at Gravitas, Shah Alam have a modern design, which reflects a contemporary light industrial development within an already established light industrial development area.

Johan added that it is not expected to incur any significant costs on these properties as they are newly constructed and in good condition.

Meanwhile, the land that APSB is acquiring from Johan is located along Jalan Meranti Jaya 16 within Taman Meranti Jaya. The immediate surroundings of Taman Meranti Jaya are detached factories, vacant industrial lands, and large industrial premises.

Johan said it is selling the land to realise the property at prevailing market value.

Additionally, it serves as an opportunity to divest the currently dormant property, which Johan has no further plan nor there is any financial contribution from the property to the group.

Johan said the proceeds (from the land sale) received will strengthen its cash flow for its intended purposes. It will utilise RM14.75 million for repayment of the loan, and RM26 million for investment and business opportunities.

The group said it is in the midst of exploring its options to identify suitable new investments that include travel and tour businesses to augment the group's Diners World Travel business in Malaysia and Singapore, among others.

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Quill Residences selling at an average RM1,700 psf

An artist impression of Quill Residences.

By Sharen Kaur - Published in NST Property, March 9, 2020 

sharen@nst.com.my

The Quill Group of companies is selling serviced apartments at its Quill City integrated development in Kuala Lumpur for more than RM1 million each, or at an average RM1,700 per square foot (psf).

The serviced apartments, called Quill Residences offers a total of 552 units with up to 35 layout choices and three tiers of security.

The construction for the long-overdue 36-storey residential tower started last year and is expected to be completed in 2021.

Previously known as Vision City, the Quill City development was originally undertaken by RHB Daewoo Sdn Bhd and subsequently abandoned. Quill Retail Malls Sdn Bhd took over the freehold development in 2007 for RM430 million.

Quill City sits on a 2.87-hectare site on Jalan Sultan Ismail, fronting Sheraton Imperial Hotel Kuala Lumpur. The development includes Quill City Mall which opened six years ago and a 40-storey office tower.

The Quill group’s newly appointed group chief executive officer Koong Wai Seng. Photo credit CHTNetwork

The Quill group's newly appointed group chief executive officer Koong Wai Seng told NST Property he is confident Quill Residences will garner strong interest from home buyers despite the sluggish market conditions.

He said, the project is in a good location and situated adjacent to Quill City Mall which is undergoing some changes in the tenant mix in view of the challenging retail environment.

Quill City Mall is coming out this year "refreshed" with more exciting ideas and new tenants. The mall will transform as a place to relax and rejuvenate to boost its occupancy rate and shopper traffic.

"Quill City Mall is one of the stops for the KL Hop On and Hop Off. After a long day of sight-seeing and under the scorching hot sun, the tourists can definitely use some self-pampering moments when they get off the ride at the mall," said Koong.

Koong, who was formerly the CEO of Sunsuria Bhd said the centre will specifically target the health and wellness group and the tourist market.

Quill City Mall was hit in 2018 when Aeon Co (M) Bhd vacated a huge portion of the mall. Another major blow was when Asia Music City Sdn Bhd decided to close the shop at the mall.

By December 2018, the mall's occupancy rate fell to 47.1 per cent.

The mall has a net lettable area (NLA) of 777,967 sq ft.

"This year several new tenants are moving in, which will bring back up the occupancy rate," said Koong.

New tenants include JDX Presto, which operates the largest cashless concept store in ASEAN, utilising a total of 50,000 square feet in the mall. The store's opening helped push up the mall's occupancy rate to 60 per cent.

JDX Presto Concept Store has opened in Quill City Mall. Photo courtesy of Quill

JDX Presto offers products from a host of brands covering categories such as electrical appliances, gadgets, health & beauty, home & living, fashion, and food & beverages, with a total of up to 3,000 stock-keeping units.

The mall's “permanent residence” is Universiti Kuala Lumpur (UniKL), which will open in July this year. UniKL will occupy 77,000 sq ft of space and is targeting about 2,500 students. This is in addition to the 3,000 students already at the campus next door.

"With the potential of 5,500 students this year in one location, new tenants in the mall and the connection to the monorail station we anticipate there will be a strong interest in Quill Residences.

"We are selling the units at an average RM1,700 psf which is before the early birds discount. It is value for money and an ideal spot for investment. The units are well furnished and fit for short stay purpose," said Koong.

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