Prospect Place, located in London's Battersea, and designed by Gehry Partners welcomes its first residents

 By Sharen Kaur - Published in NST Property on April 29, 2022 

Prospect Place, Gehry Partners' flagship residential building at the Battersea Power Station regeneration project in central London. Courtesy image

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Prospect Place, Gehry Partners' flagship residential building in the United Kingdom (UK) and a key component of the Battersea Power Station regeneration project, has welcomed its first residents.

It has 308 new homes, which include studios, one, two, and three-bedroom apartments, as well as four-bedroom townhouses and penthouses.

No two apartments are the same, and they are all finished to the highest quality, making this a once-in-a-lifetime opportunity to own a Frank Gehry-designed home.

A first look inside Frank Gehry’s first residential buildings in the UK. Courtesy photo (Image credit: Taran Wilkhu)

Simon Murphy, chief executive officer at Battersea Power Station Development Company (BPSDC), said that Frank Gehry, founder of Gehry Partners, and his team have gone above and beyond in the delivery of world-class buildings at Prospect Place.

"It is an honour that Frank's first UK residential project is at Battersea Power Station and its completion marks an important milestone in the development. When we first designed the masterplan, we envisioned a thriving community where people can live, work, and play, and with every milestone achieved, we are ever closer to making that vision a reality, particularly as we prepare to open the Power Station to the public from September," he said.

Many of the apartments have views of the Power Station, which is one of the most iconic structures in the UK, and each has a spacious open plan layout and access to either a winter garden or terrace.

The completion of the buildings and the arrival of residents follow the completion of Switch House West and Switch House East, located on the left and right wings of the Power Station, where residents began to move in last year.

A residents' garden designed by LDA Design, the landscape designers of the London Olympic Park, is among the structures.

Double-height retail units at street level bring the 15-minute neighbourhood to life, forming one-half of Electric Boulevard, which will be the main pedestrian gateway to the development and a new high street for Battersea, offering a mix of office space, shops, bars, and restaurants.

This new high street will also serve as an entrance to the new Battersea Power Station Zone 1 tube station, which will be the first major extension to the London Underground network this century, connecting the destination and the surrounding Battersea neighbourhood to the West End, City, and beyond in under 15 minutes.

Residents will have access to the adjacent building, which was designed by the prestigious architectural firm Foster + Partners.

Residents of Battersea Roof Gardens can take advantage of cutting-edge amenities such as an 8,350 sq ft private Sky Lounge, a sunset bar, workspaces, a cinema room, lounge areas, and a gym.

Rooftop gardens designed by James Corner, who designed the New York High Line, and LDA Design will also be available to residents.

Along with the high-quality amenities, Battersea Roof Gardens will include 232 new apartments and new retail space on Electric Boulevard, as well as a 164-room art'otel, the brand's first hotel in London.

Purchasing an apartment designed by Gehry Partners is similar to buying a one-of-a-kind work

Prospect Place and Battersea Roof Gardens are located to the south of the Power Station, and this phase also includes a children's playground, Prospect Park, and Electric Boulevard, the new high street.

Gehry Partners created two colour palettes for the Prospect Place homes: London and Los Angeles. The London palette reflects the development's historical elements, with metal finishes and contrasting rich textures to create a streamlined industrial feel that mirrors the adjacent Power Station.

In contrast, and drawing inspiration from warmer climates, the palette in Los Angeles is more relaxed, with pale wooden finishes and a light colour scheme to complement the bright open spaces and waterside living experience.

A new show apartment, outfitted with the LA palette, has recently opened, providing a first look inside Gehry Partners' development.

Battersea Power Station is one of central London's most expansive, forward-thinking, and eagerly anticipated new riverside neighbourhoods.

The £9 billion regeneration project spans 42 acres and includes 3.5 million square feet of mixed commercial space as well as 4,239 new homes.

It will be a vibrant, mixed-use destination with homes, shops, restaurants, offices, culture, and leisure venues, as well as 19 acres of public space, all served by an extension to the London Underground Northern Line.

The wider Battersea Power Station development is owned by a consortium of Malaysian investors comprising Sime Darby Property (40 per cent), S P Setia (40 per cent), and the Employees' Provident Fund (20 per cent).

Sime Darby Property's 'Capture 8 Photo' contest offers the chance to win an all-expenses-paid trip for two to London's Battersea

 By Sharen Kaur - Published in NST Property on April 28, 2022 

The iconic Battersea Power Station in Central London.

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Sime Darby Property Bhd is offering an all-expenses-paid trip for two to the famous Battersea Power Station in Central London, United Kingdom, as the grand prize for its 'Capture 8 Photo' contest.

The contest, held in collaboration with Canon Malaysia, asks participants to submit photos that best capture the uniqueness of the developer's townships using three themes: leisure, culture, and nature.

The contest will last eight months, until November 30, 2022, and will cover eight Sime Darby Property townships.

City of Elmina, Serenia City, Putra Heights, Subang Jaya City Centre, KLGCC Resort, and KL East (all in Klang Valley), as well as Nilai Impian and Bandar Ainsdale in Negeri Sembilan, are among the eight townships featured in this competition.

These townships are each notable and prominent in their own right, with ample representation of the contest's themes. The townships are well-known for their leisure amenities that encourage relaxation. Nature is represented in its natural settings and through its sustainability efforts, while culture is abundant in placemaking efforts.

The Capture 8 Photo contest will allow the public to see how three themes are brought to life uniquely in each township.

Each professional, smartphone and drone category will receive eight enticing prizes.

Other prizes worth more than RM288,888 are available to participants, including Canon DSLR cameras, Canon printers, DJI drones, and cash.

Sime Darby Property said in a statement that the Capture 8 Photo contest will allow the public to see how the three themes are brought to life uniquely in each township through careful planning, design, and execution.

Participants are encouraged to use their skills and creativity to tell the stories of these townships in any or all of the competition categories, and to register at the official Capture 8 Photo contest website to enter their submissions.

The entries will be judged based on theme adherence, originality, creativity, and expressiveness.

Data show that the local real estate market is slowly recovering

 By NST Property - Published in NST Property on April 28, 2022 

NSTP/FilePhoto

The property market has shown signs of recovery from the pandemic-induced slowdown in 2020, with the volume of transactions increasing by a marginal 1.5 per cent but the value of transactions increasing by a significant 21.7 per cent, according to the annual Malaysian property market report for 2021.

Tang Chee Meng, chief operating officer at Henry Butcher Malaysia, said this would imply that the average value of transactions is higher than the previous year.

According to the report published by the Valuation and Property Services Department on April 1, 2022, the volume of transactions fell during the second and third quarters as the country entered various Movement Control Order (MCO) modes, but the volume of residential transactions increased significantly during the fourth quarter as home buyers tried to beat the year-end deadline to qualify for benefits under the Home Ownership Campaign (HOC).

Residential sector performance

The residential sub-sector, as it has been for many years, was once again the largest contributor, accounting for 66.2 percent of transaction volume and 53.1 percent of transaction value. Transaction volume increased by 3.9 percent over the previous year, while the transaction value increased by a respectable 16.7 percent.

Selangor contributed the most to both the volume (24.5 per cent) and the value (34.4 per cent) of transactions, with Kuala Lumpur ranking second in terms of contribution to the value of transactions (12.6 per cent).

The residential sub-sector was once again the largest contributor, as it has been for many years, accounting for 66.2 pe rcent of the transaction volume and 53.1 per cent of transaction value. The sector saw a small 3.9 per cent increase in transaction volume over the previous year, while transaction value increased by a respectable 16.7 per cent.

Tang said that terraced houses remained the most popular housing type among Malaysians, accounting for 43 per cent of total residential transactions. Vacant lots and high-rise apartments came next, each accounting for nearly 15 per cent of the total.

Nearly 56 per cent of all residential transactions were for affordable houses priced at RM300,000 or less, followed by those priced between RM300,001 and RM500,000 (24.6 per cent) and RM501,000 to RM1,000,000 (14.8 per cent).

"Although transactions for residences costing more than RM1,000,000 accounted for only 4.8 per cent of total transactions, the number of transactions increased by 26.3 per cent over that achieved in 2020," Tang said.

Tang Chee Meng, chief operating officer at Henry Butcher Malaysia said that terraced houses remained the most popular housing type among Malaysians,

Tang said that there were fewer new launches in 2021 as developers, understandably, held back on new launches and concentrated on clearing existing stocks.

The number of units launched fell from 47,178 in 2020 to 43,860 in 2021 (down 7.6 per cent).

Landed properties accounted for 43.3 per cent of the units launched, while highrise residences accounted for 28.9 per cent. Houses priced at RM500,000 and below accounted for roughly 70 per cent of new launches, while those priced above RM1 million accounted for only 2.1 per cent.

"This highlights developers' current focus on more affordably priced homes that commanded a higher level of demand in the context of the current softer market conditions," Tang said.

Selangor led the way with 9,827 new launches, followed by Johor with 5,513 units and Perak with 5,239 units. WP Kuala Lumpur, which topped the list of new launches in 2020, did not make the top three this time.

Terraced houses accounted for approximately 60 per cent of new launches, while condominiums and apartments accounted for only 27.4 per cent. Penang led the way in terms of sales performance, with 65.1 per cent, followed by Kedah (61.2 percent), Selangor (54 per cent), and Johor (49.2 per cent).

WP Kuala Lumpur performed poorly in 2021, with a sales performance of 14.4 per cent.

The improved sales performance in 2021 resulted in a 31 per cent increase in the value of loans approved when compared to 2020, as the market showed strong signs of recovery.

The total amount of loans approved was the highest in the last ten years.

The national residential overhang increased by 24.7 per cent in 2021, totaling 36,863 units worth RM22.6 billion (an increase of 20.5 per cent), while the overhang of serviced apartments increased by 33,181 units worth RM1.58 billion.

Surprisingly, houses priced under RM300,000 accounted for 31.5 per cent of the residential overhang, with those priced between RM300,000 and RM500,000 accounting for the remaining 25.7 per cent. Houses costing more than RM1 million accounted for only 12.6 per cent of the residential overhang.

"It is critical for the industry to determine the reason for the high number of overhang units for lower-priced houses. Is it because these projects are being built in less desirable or inconvenient areas for the buyers who are being targeted, or because they are being built in areas where the targeted buyers are not really in the market for new homes because they are comfortably settled in their kampung homes? Perhaps the unsold homes are for Bumiputeras, and more efforts must be made to attract and assist buyers from this community," Tang said.

Tang suggested that agencies tasked with developing affordable housing rethink their business model by building homes for rent to lower-income groups or partnering with financial institutions to offer Rent-to-Buy schemes to the target groups.

He said that, as in previous years, high-rise residences accounted for 55.6 per cent of residential overhang, while terrace houses contributed about 21.3 per cent.

Selangor and Johor had the highest residential overhang stocks in terms of state, each contributing about 6,000 units, with the total value of the residential overhang reaching RM5.28 billion for Selangor and RM4.72 billion for Johor. Penang came in second, with 5,493 units worth RM3.56 billion, and WP Kuala Lumpur came in third.

Penang came in second with 5,493 units worth RM3.56 billion, and WP Kuala Lumpur came in third with 3,908 units worth RM3.17 billion.

Tang said that in terms of serviced apartment overhang, those priced between RM500,000 and RM1 million made up about 64 per cent of the total, while those priced above RM1 million made up about 23.4 per cent.

"The higher price bracket of the unsold service apartments is understandable given that most service apartment projects with commercial titles are built in more urbanised areas where land costs are typically higher," Tang explained.

In terms of the Malaysian House Price Index (HPI), it increased by 0.6 per cent in 2021.

Tang said that the rate of growth in house prices appeared to have peaked in 2012 and has since slowed.

While Johor and Selangor saw marginal increases in the HPI at the state level, Kuala Lumpur and Penang saw declines.

Terraced houses were the only housing type to see a two per cent increase in the HPI, while all other types saw small declines.

In 2021, the national median house price increased by five per cent to RM 310,000. This represents a 96.2 per cent increase over the RM158,000 recorded in 2010. Putrajaya had the highest median price at RM628,000, followed by Kuala Lumpur (RM490,000), Selangor (RM410,000), Johor (RM360,000), and Penang (RM317,000). Kedah has the lowest recorded median price, at RM 207,000.

Tang predicted that the first quarter of 2022 will likely see a lower volume and value of residential transactions than the fourth quarter of 2021, which was fueled by HOCs.

He predicted that in the first half of the year, developers will try to find the right mix of incentives and sales packages to entice buyers, while the economic fallout from the sanctions imposed by the West after Russia invaded Ukraine will cause investors to be cautious.

Rising building material costs, supply chain constraints, and labour shortages will raise construction costs, while developers will be unable to pass on all additional costs to purchasers due to softer market conditions.

A stronger market recovery will be more likely in the second half of the year, he said, especially if the general elections, which are widely expected to be held this year, produce a more stable government.

CBRE|WTW: Malaysian island resorts will benefit from a tourism recovery this year

 By Sharen Kaur - Published in NST Property on April 28, 2022 

File Photo of Pangkor Laut Resort.

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Resorts in Langkawi, Kedah, and other popular Malaysian islands will benefit greatly from a tourism recovery this year, says CBRE|WTW chairman Foo Gee Jen.

According to him, business travel and leisure expenditures on resorts in Langkawi, among other getaway islands, will see a gradual increase in occupants as many have grown to worry less about the statistics of the Covid-19 numbers, which initially created a mental block.

Foo said the increasing level of confidence among tourism operators, coupled with easing entry procedures, will drive the demand for tourism products.

According to CBRE Asia Pacific's insights from its Kuala Lumpur Hotel Market Outlook & Prospects 2022 report, Malaysia's tourism market is expected to recover this year, led by the return of Singapore travellers following the resumption of travel between the two countries.

Singapore has historically been the top source market for Malaysia, accounting for an average of 46 per cent of total arrivals between 2015 and 2019.

Kuala Lumpur will benefit from Malaysia's reopening to international travel.

According to Steve Carroll, CBRE's head of hotel and hospitality for Asia Pacific capital markets, Kuala Lumpur has long been a hub for business and leisure travel in the region.

"Like many travel hubs, the city's hotel industry has had to navigate the challenges brought about by the pandemic. However, the city's strong economic growth and the government's plan to revitalise its tourism industry, coupled with improving fundamentals and notable infrastructure developments in the pipeline, make Kuala Lumpur's hotel market a prime candidate for investment in 2022 and beyond," he said.

Kuala Lumpur's hotel RevPAR (revenue per available room) increased in the fourth quarter of 2021, and CBRE expects RevPAR to rise further in the coming years as international brands enter the market and luxury and upscale hotel projects are completed.

Mid-scale city hotels continue to maintain healthy gross operating margins of 40 to 50 per cent, in line with other well-established markets in the region such as Singapore.

Country Heights to transform a portion of MIECC for its new JDMines retail venture

 By Sharen Kaur - Published in NST Property on April 27, 2022 

An aerial view of the Mines International Exhibition and Convention Centre (MIECC) in Seri Kembangan.

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Country Heights Holdings Bhd (CHHB) is set to transform part of the Mines International Exhibition and Convention Centre (MIECC) in Seri Kembangan to launch a new retail business that will offer customers a seamless shopping experience.

MIECC, Malaysia's premier exhibition venue, has a total built-up area of approximately 1.2 million sq ft and a banquet seating capacity of more than 8,000 people.

The ground floor of the building, which has previously been used for car shows and exhibitions, will be transformed into a large retail space with both an e-commerce platform and offline experiential touchpoints.

The transformation is part of CHHB's plan to build its new retail business using its omnichannel business model via the recently launched JDMines online e-commerce platform.

The group expects to invest more than RM250 million over the next five years to set up large retail spaces and small retail footprints nationwide.

CHHB's entry into the retail business was established on December 28, 2021, when the property development and investment group signed a licensing and collaboration agreement with Beijing Wodong Tianjun Information Technology Co Ltd, a wholly-owned subsidiary of JD.com.

JD.com is a Beijing-based international e-commerce company that has reportedly invested in high-tech and artificial intelligence delivery around the world.

Country Heights Holdings Bhd managing director Datuk Jared Lim at the official launch of JDMines.

CHHB had set aside RM50 million to build the flagship retail store at the ground floor of MIECC, which spans 150,000 square feet, according to its managing director Datuk Jared Lim.

Lim said it will have a few anchor divisions such as smart living, smart home furnishing, smart home appliances, and consumer products from China that aren't easily available in Malaysia.

He told NST Property that CHHB will expand its retail business by introducing a new type of retail experience to Malaysia using advanced technologies developed by JD.com.

He said that the goal of the collaboration with JD.com is to reinvent the retail experience, both offline and online, by leveraging the firm's experience and technology.

"People are shifting their purchasing habits and going online. We hope to pioneer a new and distinctive shopping experience in Malaysia. Our partnership with JD.com is very strategic. The majority of a company's capital expenditure is usually spent on research and development, programming, and platform development. In this case, JD.com is our technology partner, and they built everything, which we are now localising for Malaysia," he said.

Country Heights Holdings Bhd founder and chairman Tan Sri Lee Kim Yew said the partnership with JD.com is a “good marriage” between the two companies.

Tan Sri Lee Kim Yew, founder and chairman of CHHB, said that the collaboration between CHHB and JD.com is a marriage between two companies to take the e-commerce business to a whole new level.

"Malaysia must have a good set-up for import and export. The relevant agencies must have more liberal rules and regulations. Trade is very important for Malaysia. We are a trading nation.

"I hope Mines will transform into a major trading hub and also become a platform for new products for Malaysia. I believe that the trading business will become very sizeable. Our tie-up with JD.com is not cheap. We hope that all Malaysian will look at this platform for trading.

"With the joint venture, we hope to set up a business development unit to help Malaysians to develop products to export to China. The products must comply with China standards. We can export a lot of products and fruits like durians, pineapple, papaya, and mangoes to China like what I have been doing in the past," Lee said.

Immense value in omnichannel model

TA Securities believes that introducing the internationally recognised e-commerce brand, JD.com, via an omnichannel model, rather than the more commonly seen online-focused model implemented by peers such as Shopee, Lazada, Zalora, and others, has enormous value.

"Although some may think JDMines is late to the game in Malaysia, we reckon the inclination of consumers wanting to view and touch products before committing to new purchases online, having various options of purchasing based on respective preferences alongside being assured of good after-sales services and warranties would accelerate user growth within JDMines ecosystem.

"In addition, JDMines would be able to bridge Malaysian consumers to some of the well-priced high-quality goods available in China's JD.com through its ecosystem by easing complex warehousing, shipping, and delivery arrangements alongside the complicated process of translating the Chinese language into more familiar languages of Malaysians," the research firm said in a note recently.

In terms of JDMines' funding requirements, TA Securities said it understands that the initial set-up cost will be funded by CHHB via a c.RM20 million shareholder's loan at 10 per cent per annum.

Following that, a series of debt or equity funding would be raised externally at the JDMines level based on respective milestones met, limiting CHHB's overall exposure to the initial loan.

"We estimate CHHB's equity stake in JDMines would be diluted over time to c.40 per cent from the initial stake of 70 per cent. Nonetheless, the expected exponential growth in size and valuation of JDMines would make CHHB's investment in JDMines a worthy investment," it said.

Phase 3B of the Battersea Power Station will be launched this year

 By Sharen Kaur -  Published in NST Property on April 25, 2022

File photo of the Battersea Power Station project in Central London.

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This year, Sime Darby Property Bhd is set to launch phase 3B of the Battersea Power Station project in Central London.

Rizal Rickman Ramli, its non-independent and non-executive chairman said that the Battersea Power Station project shows promising prospects, with crowds returning to the development for the summer.

He stated in Sime Darby Property's integrated annual report 2021 that the group is looking forward to launching phase 3B of the joint-venture (JV) development.

Sime Darby Bhd, S P Setia Bhd, and the Employees Provident Fund (EPF) formed Battersea Project Holding Company Ltd (BPHCL) in July 2012 and purchased the iconic Battersea Power Station for £400 million.

Sime Darby and S P Setia each own 40 per cent of BPHCL, with the EPF holding the remaining 20 per cent. Sime Darby also serves as the venture's chairman.

Future phases of the Battersea Power Station project, according to Rizal Rickman, are currently being reviewed, guided by a flexible planning and development strategy.

He stated that Sime Darby is closely monitoring market trends in the United Kingdom, including London, and is learning from the experience of managing this massive investment for future business.

"Despite our sanguine mood for better prospects and opportunities in 2022, we are under no illusion that there are still uncertainties and challenges in the economy due to the rising inflation, geopolitical tensions, and the lingering impact of the prolonged Covid-19 pandemic.

"However, with the group's strong leadership, agile employees, and sound fundamentals, we are confident that our ability will enable us to navigate situations and challenges with sustained success. Overall, we are confident that we are on track to achieving our end goal of becoming a real estate company by 2025," he said.

The board is generally pleased with the progress made thus far, particularly in the fiscal year 2021, when Sime Darby Property achieved numerous tangible positive outcomes, including solid sales achievement, the highest-ever gross development value of new launches, and financial improvements across all business lines, Rizal Rickman said.

Matrix Concepts anticipates better times ahead, fueled by international projects

 By Sharen Kaur - Published in NST Property on April 22, 2022 

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Matrix Concepts Holdings Bhd is ready to return to a sustainable growth trajectory supported by its overseas projects, according to chairman Datuk Mohamad Haslah Mohamad Amin.

Mohamad Haslah said that the company expects earnings contributions from M. Greenvale, its second sold-out Australian development.

He said the company's Indonesian venture is also doing well, with the encouraging execution of Menara Syariah, which is scheduled to be completed next year.

"These (two projects) will supplement the robust and growing demand at our townships enjoyed in recent years and which have allowed us to be cautiously optimistic of another solid year," he told reporters after the company's MetaRaya iftar event yesterday.

The ongoing M. Greenvale development in Melbourne's outskirts is set to be completed in May 2022.

Mohamad Haslah, according to Bernama, said that it will provide a lump sum revenue recognition in accordance with local accounting standards.

Matrix Concepts will launch its next Melbourne project, 333 St. Kilda, in the middle of this year.

The A$80 million (A$1=RM3.18) 12-story mixed development will be the company's largest project in Australia to date.

According to Mohamad Haslah, the development will capitalise on St. Kilda's popularity as a popular Melbourne suburb destination.

Meanwhile, the twin-tower, 29-story Menara Syariah building is the company's first Indonesian joint-venture (JV) project with local partners.

Mohamad Haslah said that the office and retail podium will allow it to establish a long-term presence in the area.

According to Bernama, the Indonesian JV will start more projects in the prime area of Pantai Indah Kapuk 2, an international waterfront township where the RM1 billion Menara Syariah is currently under construction.

Mohamad Haslah said that the company's efforts to diversify its revenue stream prior to the start of the pandemic resulted in the expected delivery of its international projects in the fiscal year 2023 (FY2023).

"We have illustrated our ambition for growth since listing and we believe that despite the many heights the group has achieved over the years, we have not reached our peak. We will be seeking opportunities for strategic collaboration to further strengthen our value proposition as well as secure quality land for developments as part of our growth strategy and to enhance shareholders' value," he added.

Matrix Concepts anticipates RM1.2 billion in property sales in the fiscal year ending March 31, 2023, owing to continued strong take-up rates, particularly at its flagship Bandar Sri Sendayan township in Negeri Sembilan.

Despite a number of challenges during the year, including limited operating conditions and a slower-than-expected domestic economic recovery, the company achieved 83.2 percent of its FY2022 property sales target.

Country Heights will reappear on investors' radar as it begins to implement new transformation plans

 By Sharen Kaur - Published in NST Property on April 22, 2022

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Country Heights Holdings Berhad (CHHB) is set to reappear on the radar of investors as management begins to implement new plans that will lead to greater transformation.

According to TA Securities, based on the recent series of events at CHHB since the appointment of managing director (MD) Datuk Jared Lim Chih Li (DJ) in September 2020, the group could reach new heights.

DJ, the son-in-law of Tan Sri Lee Kim Yew, CHHB's former MD and controlling shareholder with current collective interest of 63 per cent, brings nearly 30 years of experience in corporate finance, private equity, entrepreneurship, and transformational leadership with him.

Lee has stepped back from operations and has publicly stated that he intends to resign from the Board in the near future to focus on his privately held ventures.

According to TA Securities, CHHB has laid out multiple plans to integrate its existing businesses with technology to achieve the goal of being an integrated digital landlord under the new leadership of DJ.

"Given the congruence of goals for being the family member of controlling shareholder and management, we believe DJ would make the most out of the company and take it to new heights," the firm said in a note today.

DJ is the executive director of Techna-X Bhd, which is spearheading diversification and leading transformation in the energy storage and digital transformation space, in addition to CHHB.

According to TA Securities, given Techna-renewed X's primary activities, which include energy storage solutions and smart batteries, smart city and IoT solutions, business intelligence, and data analytics, CHHB will be able to source digital solutions from the company to accelerate productivity and improve residents' experience in the group's projects.

In October 2020, CHHB signed a Memorandum of Understanding with Techna-X to form a blockchain-technology-driven smart city partnership for Mines Wellness City stakeholders.

Tan Sri Lee Kim Yew established Country Heights Holdings Bhd in 1984.

The journey of transformation

Country Heights Kajang was the first township development established by CHHB in 1984. Mines Resort City was then built from the world's largest open cast tin mine.

The group reached its peak in the late 1990s. However, as Lee began to focus on other ventures in his private portfolios, his activities and property launches dwindled.

The market has taken notice of the group again in the last 18 months, thanks to DJ's leadership, according to TA Securities.

"We are excited about the potential of transforming CHHB into a digital landlord and the possibility of CHHB regaining its prior glory," TA Securities said.

CHHB now has four main business divisions: healthcare, resort and hospitality, exhibition and convention, and property. It plans to launch a new retail division (JDMines) in the second half of the fiscal year 2022.

According to TA Securities, the group's future earnings/cash flow generators will be the property and new retail divisions.

The firm's property division, according to the firm, owns legacy land and property with significantly higher than market margins.

In the coming years, the property division is expected to be more robust, with deliberate plans to monetise about RM300 million in assets in the form of completed properties, including the sale of Mines Wellness Suites (GDV of RM180 million) and College Heights Estate (GDV of RM85 million).

Plans are in the works to transform Mines township, CHHB's crown jewel, into a smart city connected via a Mines smart city app and infrastructure upgrades.

Its wellness division, based in the Mines, has also begun expansion plans to build a complementary medicine hospital and a confinement centre.

"These are expected to raise the overall value of the township where CHHB still has a significant land bank," according to the firm.

Assets are worth more than it appears

According to TA Securities, CHHB's assets are significantly more valuable than what appears on the financial statement (given that accounting standard tends to be prudent and recognise long-term assets based on historical cost).

As of December 31, 2020, the firm discovered that more than 80 per cent of CHHB's 2,357-acres of properties were acquired or last revalued before 2002 (20 years ago), and significantly understate the value of its properties compared to the marketable value today.

"For instance, an 11-acre land in Kajang acquired in 1987 has a book value of RM2 million or RM4.00 per st ft (psf) despite fetching a realisable value of RM100 sq ft to RM150 sq ft now. Similarly, some of CHHB's key investment properties such as the Palace of the Golden Horses, Mines Wellness Hotel and Mines International Exhibition Centre that carry book values based on the period of 1998-2008 appear underappreciated by the investment community. Note that, the Malaysian house price index has been on the rise for most of the 21st century except for the recent two years when Covid-19 mildly dampened the market sentiment," it said.

According to management, the book value of CHHB's properties is closer to RM2 billion in today's market valuation than the RM1.1 billion stated in its financial statement.

When combined with Lee's upcoming asset injection, the realisable value of CHHB's properties is estimated to be RM2.5 billion, or RM3.00 per enlarged share cap, after accounting for all foreseeable corporate exercises, according to the firm.

"We see no obstacles for CHHB to fund its expansion plans given multiple avenues to raise funds. These include leveraging on its current balance sheet (low gearing of 0.24 times with a high net asset of RM800 million, its proposed private placement of up to 20 per cent of the group's total number of issued shares, and potential proceeds from the exercise of outstanding warrants, which could raise to RM158 million (RM132 million outstanding warrants at an exercise price of RM1.20), " it said.

YTL Power to build solar-powered data centre in Johor

 By Sharen Kaur - Published in NST Business on April 22, 2022 

YTL Power International Bhd, the country's first independent power producer, is building a 500 megawatt (MW) solar-powered data centre in Johor's Iskandar region.

KUALA LUMPUR: YTL Power International Bhd, the country's first independent power producer, is building a 500 megawatt (MW) solar-powered data centre in Johor's Iskandar region.

The group's Singapore-based subsidiary YTL Data Center Holdings Pte. Ltd. (YTL DC) will develop the YTL Green Data Center Park, which will include over 535,000 square feet of purpose-built data centre development.

It will provide power and connectivity diversity on a large industrial site, with 275 acres dedicated to data centre development.

Datuk Yeoh Seok Hong, managing director of YTL Power, said this provided excellent opportunities for customers seeking green data centres to meet their needs.

Construction on the first 72MW data centre has begun, and it is expected to be operational by the first quarter of 2024.

"With the development of the YTL Green Data Center Park, we are driving the expansion of our infrastructure platform to the digital age by combining our expertise in renewable energy, property development, telecommunications, and data centres," Yeoh said in a statement.

The project would serve as the group's flagship integrated data centre vision for serving customers in the greater Singapore region, as well as a catalyst for its regional expansion in this space, he added.

The YTL Green DC Park will have dark fibre connectivity to Singapore.

According to Yeoh, this would benefit companies with operations in Singapore that want to expand, supplement, and optimise their data centre processes. 

He also said YTL Power would use the project to leverage its long-standing expertise in infrastructure development, providing end-to-end solutions to clients and partners.

Dark fibre connectivity will provide direct, ultra-low latency network connections to data centres in Singapore and other Malaysian locations. 

YTL DC announced the acquisition of Dodid Pte Ltd (Dodid) in December, the owner of a 12.5MW Tier-III data centre in Singapore spanning 42,000 square feet.

Works are also underway to expand and upgrade the group's 5MW data centre facility in Sentul here to Tier-III standards, providing customers with a strategically located site in the heart of the capital, close to key internet exchange hubs.

YTL DC's future plans include leveraging the company's expertise in renewable energy, telecommunications, and construction to build new data centre campuses in Southeast Asian countries such as Thailand, the Philippines, Indonesia, and Vietnam.

S P Setia's top priority is de-gearing, along with land sales

 By Sharen Kaur - Published in NST Property on April 21, 2022 

sharen@nst.com.my

De-gearing is currently S P Setia Bhd's top priority, according to RHB Research.

The firm believes that the handover of a few projects in Melbourne and Singapore, as well as the potential completion of some land disposals, will help reduce S P Setia's net gearing to 0.51 times to 0.53 times by year's end, down from 0.61 times currently (including non-controlling interests).

It stated in a note today that during a recent meeting with S P Setia's head of IR, it was revealed that Sapphire and UNO in Melbourne, which will be completed in the third quarter of 2022, and Daintree Residence in Singapore, which will be completed in the fourth quarter of 2022, should help to reduce RM1.5 billion to RM1.6 billion in debt from the company's total borrowings of RM12.6 billion.

According to the firm, S P Setia's management has also indicated that it may re-finance the existing Islamic redeemable convertible preference shares RCPS-i B (worth RM1.04 billion) on December 22, after the fifth anniversary.

The current coupon rate for this tranche is at 5.93 per cent, and the firm feels S P Setia is at an advantage to ride on the current low-interest-rate cycle to re-finance it at a lower rate.

This should help to reduce S P Setia's total preferential dividend payment to both RCPS-i which amounted to RM130 million per annum if it materialises, it said.

RHB Research anticipates that S P Setia's financial position will gradually improve in the second half of the year.

It also believes S P Setia is on track to meet its RM4 billion sales target, thanks to RM4.25 billion in launches, 65 per cent of which are landed properties.

The stock has been upgraded to "buy" from "neutral" by the research firm, and the target price has been raised to RM1.48 from RM1.28.

The firm stated that the ongoing sale of non-core landbank and strategic plots within its township developments should help S P Setia further reduce its gearing and accelerate the value unlocking of its land bank.

S P Setia announced in May 2021 that it would sell 959.7 acres of land in Johor to Scientex Bhd for RM518.1 million. The land sale, which will be completed in stages, is currently awaiting approval from the Economic Planning Unit.

According to the research firm, S P Setia is also talking with a few corporates and a logistics company about selling some commercial land plots in Setia Alam Impian.

Regarding the new land acquisition, the firm stated that S P Setia is looking to replenish its land bank in Melbourne, as existing projects will be completed this year.

"We are not concerned over the potential funding as the accumulated profits generated in all S P Setia's past projects in Melbourne should help to finance the new land," it said.