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Public Bank Bhd will mobilise RM40 billion in ESG (environmental, social, and governance) friendly financing by 2025, including increasing customer access to green building financing, says its managing director and chief executive officer (CEO), Tan Sri Dr. Tay Ah Lek.
This was in addition to a goal to achieve net zero emissions by 2050 and carbon neutrality by 2030, he said.
He said this in a statement released by Eco World Development Group Bhd (EcoWorld) following the signing of a memorandum of understanding (MOU) today to offer consumers buying EcoWorld houses a special sustainable financing package.
EcoWorld is giving green and sustainable development financing for properties developed by the company which has received green certifications from the Green Building Index, GreenRE, and other accreditation agencies.
According to Tay, the agreement is significant since it establishes a partnership between EcoWorld and the banking group to improve the environment.
"It also presents a good opportunity for Public Bank and EcoWorld to jointly promote the green building agenda and be part of the global climate solution for a sustainable planet," he said in the statement.
Tay said the property industry makes up a sizeable portion of the country's gross domestic product, but studies have shown that it also accounts for roughly 40 per cent of the world's carbon emissions, making it a key player in attempts to slow down global warming.
"This MOU signing is a step in the right direction as EcoWorld is addressing the sector's climate impact through the conceptualisation, design, and construction of many sustainable projects in the country, including in Klang Valley, Johor, and Penang," he said.
Since the beginning of 2016, Public Bank has provided funding for two projects by EcoWorld namely Eco Grandeur and Eco Business Park V (EBP V).
Eco Grandeur is EcoWorld's largest township and is located in the Klang Valley's developing Puncak Alam growth corridor, while Eco Business Park V is one of a series of green industrial parks being developed by the firm in the same corridor.
The two projects' combined land area is close to 2,300 acres.
By Sharen Kaur - Published in NST Property on August 26, 2022
sharen@nst.com.my
Eco World Development Group Bhd will provide green and sustainable development financing for the properties that the company develops.
The company today signed a Memorandum of Understanding with Public Bank Bhd to provide consumers with its special sustainable financing package for the purchase of EcoWorld properties that have earned green certifications from Green Building Index, GreenRE, and other accreditation agencies
The package is a part of Public Bank's green initiatives, which seek to encourage individuals and businesses to adopt environmentally friendly practices and lessen their carbon footprints.
It covers the financing of both residential and non-residential assets in accordance with Public Bank's Green 5HOME Plan and Green SWIFT Plan.
Attractive features offered include discounted pricing, fast lane approval, and a financing option for customers looking to upgrade the sustainability aspects of their houses with eco-friendly and energy-efficient appliances, fixtures, and fittings.
EcoWorld's president and chief executive officer, Datuk Chang Khim Wah, expressed his company's pleasure at working with Public Bank to encourage their respective customers to embrace sustainability in their residences, places of employment, and daily lives.
"The need to take proactive steps to combat climate change has never been more urgent. With Public Bank as our partner, it is easier and more affordable for customers now to own a green-certified property. On our part, we will continue to pursue sustainable development, promote green living and invest in green certification for our projects. This is a commitment we made since we first established the EcoWorld brand and to date, close to 90 per cent of our projects are green accredited," he said.
Chang said from an environmental, economic, and societal standpoint, Eco Grandeur, Eco Business Park V (EBP V), and Laman Haris (Settler Home Precinct) are EcoWorld's most comprehensive expressions of the company's sustainability objectives to date.
"As a developer, our greatest desire is to create outstanding living, working, and recreational spaces that will positively impact lives and livelihoods. Today, less than six years since we first acquired the lands in 2016, the entire corridor where Eco Grandeur and EBP V are situated has become a thriving residential, commercial, and industrial hub," he said.
Chang thanked Public Bank for supporting EcoWorld during construction on the nearly two-decade-old abandoned site.
Social justice issues were also addressed when Eco Grandeur successfully finished and handed over 987 landed units to the original inhabitants of the land who had waited more than 20 years for their dream homes, following the project's abandonment by the original developers.
By Sharen Kaur - Published in NST Property on August 26, 2022
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Sime Darby Property Bhd delivered five real estate projects in the first half of this year (H1 2022), despite the fact that a labour shortage caused delays on roughly 30 per cent of the developments.
According to the company's group managing director Datuk Azmir Merican, there is still a 50 per cent labour deficit in the present, down from 60 per cent in the first half of 2022.
Azmir anticipates that the labour shortage issue will be overcome within the next two months and that it would hire more workers to accelerate its progress by the end of the fourth quarter of this year (4Q22).
He was also confident that Sime Darby Property would be able to complete seven more projects by the end of the year.
"We have managed to bring down delayed projects due to labour shortage to around five to 10 per cent now from 20 to 30 per cent. So, we will be able to hand over the rest of the projects by the end of this year.
"This is something we would work closely with our subcontractors as we cannot do it alone. Hence, we are finding ways and pushing very hard to get workers in as this is our top priority," he said in a virtual media briefing on the company's H1 2022 financial results ended June 30, 2022 today.
"We need to understand that as the economy recovers post-Covid-19, this is a unique situation where the supply chain is being activated, but it is not going in the direction we intended. This was something that was not unexpected," he said.
According to Azmir, the outlook for the real estate market is generally positive since purchasers prefer to work with recognised developers that can produce high-quality work on schedule.
Meanwhile, the company plans to achieve the remaining RM1.3 billion in gross development value (GDV) from the RM2.8 billion targeted for 2022.
Azmir said that RM1.5 billion worth of properties has been launched in the first quarter of 2022, with 94 per cent of residential properties, excluding statutory products, already sold as of August 7.
The company plans to begin new projects both here and in the United Kingdom, where it is currently developing Battersea Power Station.
Else, a boutique hotel located on busy Jalan Tun H S Lee in Kuala Lumpur's city centre will finally open its doors on Sept 10, this year.
The 49-room, restored, and repurposed building spans seven stories and over 56,000 square feet.
Else took over the former Lee Rubber Building, which was once Yap Kwan Seng's previous vacation home, giving the pre-war building new life.
The building's ancient architecture had been meticulously conserved, keeping many of its original elements.
The art deco Lee Rubber Building was built in 1930 with a grey facade. It was developed by Arthur Oakley Coltman of Booty Edwards & Partners.
With only four floors when it was completed, it was the tallest building in Kuala Lumpur at the time.
Between 1942 and 1945, the building was used by the Japanese government as the headquarter of the Japanese secret police during World War II.
In the 1950s, an additional floor was added to the structure, making it a five-story building.
The property has a land area of 10,637 sq ft, a total built-up area of 46,607 sq ft, and a net lettable area of 38,126 sq ft.
The historic building reportedly was put up for sale in 2015 by its owner, Lee Rubber Group.
The then-85-year-old structure, according to news reports, was sold for RM29 million to Singapore-based GF Land Sdn Bhd in January 2016.
Hillington Pte Ltd is the sole owner of the Johor-registered company. Tony Con-Ling Chen, Robert Conway Chen, and Justin Chen are the directors.
Justin Chen, the deputy chief executive officer of Arcc Holdings, and Javier Perez, the owner of Series of Intentions, co-founded Else as a gathering place and retreat for tourists seeking to immerse themselves in the local culture and revitalise.
According to Justin Chen, Else is a four-year effort that was made possible by the difficulties posed by the global pandemic and was motivated by the advent of a new traveller generation.
"The result is an urban haven for the globally minded and curious. Our design and construction team have a sensitively balanced contrast of new and old with a refined juxtaposition of a pre-war building beautifully preserved and innovative design that invites all our guests to explore the property on their own, and discovers intimate pockets to pause and reflect," he said in a statement.
He said that Else respects the architectural tradition of the well-known monument while embracing modern design and a fresh take on hospitality.
The hotel has two restaurants, a board room, a state-of-the-art gym, floating meditation pods, a drawing room, and a library. It also has a 25-meter plunge pool and numerous wellness amenities.
From now until October 31, 2022, hotel nights start at RM398.
Four categories of accommodations have been designed for guests, starting with the Mantra Room (standard), a charming 25 square metre sanctuary, and the Urban Room (deluxe), a 33 square metre tastefully furnished room with a seating area.
The Sanctuary, located on the upper floors, is furnished with a super king-sized bed and a private balcony, while Sutera, a 69 sqm suite, exudes quiet luxury, complete with a private living area for extended family.
The Else Suite, a sprawling 84 sqm sanctuary with a private balcony, is the largest room.
By NST Property - August 22, 2022
A new wave of retail and leisure brands will start operating at the historic Grade II listed building and on Electric Boulevard, central London's newest pedestrianised high street, starting this year, according to Battersea Power Station.
The Battersea Bookshop, a brand-new neighbourhood bookshop from specialised bookseller Stanfords, is one of the lists of new brands. To honour the history and architecture of its home inside the Power Station, the innovative concept will house a carefully chosen collection of art, architecture, and design books in a contemporary, minimalist-designed store.
The London fitness brand Third Space will also open a 28,000 sq ft club in 2023 offering space for training, recovery, relaxation, and nutrition on the recently created pedestrianised high street, Electric Boulevard, which will run from the south of the Power Station, between Frank Gehry's Prospect Place and Foster + Partners' Battersea Roof Gardens to the Northern Line underground station
The other brands are British sportswear brand Castore, British women's activewear brand Sweaty Betty, and men's and women's technical apparel brand lululemon, which will open this year. Luxury Swiss watchmakers IWC, Watches of Switzerland, one of the largest Swiss watch luxury retailers in the UK, and Amsterdam-based eyewear brand Ace + Tate are among the others.
Retailers in the fashion industry include the home of British menswear, Hackett; contemporary fashion label Theory; British luxury lifestyle brand, Mulberry; internationally renowned American clothing company, Levi's®; Italian womenswear brand, Pinko; British material technology company engineering Clothes That Grow, Petit Pli; and the international lifestyle brand, Abercrombie & Fitch®.
These brands will join a long list of retailers opening their doors at Battersea Power Station, including Uniqlo, Ralph Lauren, Calvin Klein, Tommy Hilfiger, The Kooples, Ray-Ban, L'Occitane, Gant, The Body Shop, Lacoste, A'sop, Mango, Reiss, Le Labo, Hugo Boss, MAC Cosmetics, Space NK, Jo Malone London, and Kiehl's Since 1851.
The importance of the customer experience has never been greater when it comes to developing a new retail location, said Sam Cotton, head of leasing at Battersea Power Station Development Company (BPSDC),
"We're extremely excited to be working with some of the leading retail, hospitality, and dining concepts from around the globe, as well as independent, up-and-coming brands to bring something new and dynamic to London. Our aim has always been to create a visitor destination with something for everyone and the brand mix announced so far demonstrates that we have successfully achieved this."
Simon Murphy, chief executive officer of BPSDC said the Power Station will open its doors to the public for the first time in history.
Locals, Londoners, and tourists from other countries will be able to see for themselves how the Grade II* listed landmark has been turned into a retail and leisure destination unlike any other starting this autumn, he said.
"From the very beginning, our shareholders have been committed to giving back to the local community. The opening of the Power Station will not only allow members of the public to visit and enjoy one of Britain's treasured landmarks, but it will also create over 2,500 new jobs and help boost both the local and wider London economy," he said.
The two recently restored historic Turbine Halls, which appear to be identical from the outside but have quite different interior designs, will host the Power Station's shopping experience.
Turbine Hall B, which was completed in the 1950s, has a more brutalist, industrial aesthetic than Turbine Hall A, which captures the extravagant Art Deco grandeur of the 1930s when the Power Station was constructed.
The retail experience will continue on Electric Boulevard, where there will be a variety of offices, shops, bars, and restaurants, a park, a community centre, and an exciting new 164-room hotel from art'otel®, the brand's first hotel to open in London.
Circus West Village, the first phase of Battersea Power Station's revitalisation, is already home to more than 1,800 people and more than 20 pubs, restaurants, cafés, fitness centres, and leisure facilities.
By NST Property - August 23, 2022
Hong Leong Investment Bank (HLIB) is still wary of UEM Sunrise Bhd's near-term prospects, despite selling its interest in a South African real estate development company for a gain of RM20 million.
The investment bank is being cautious given the deteriorating sales momentum following the completion of the Home Ownership Campaign (HOC), the increase in building costs, and the labour scarcity situation.
The company also has a sizable land bank exposure in Johor, where the local real estate picture is still dim, according to a research report published by HLIB.
"While we view the recent corporate exercise, including this divestment as well as the recent Kuala Lumpur land acquisition and Johor land disposal positively as UEM Sunrise is moving ahead to optimise its land and development portfolio for a more targeted and sustainable growth plan forward, nonetheless, we are still cautious on the company's near term prospects," the investment bank said.
Despite this, HLIB supports UEM Sunrise's plan to sell land in South Africa since it believes the project is too far along and challenging for the firm to supervise.
The company will be able to reorganise its operations and concentrate its resources on projects where it has the expertise, visibility, and presence, as a result of the disposal, according to HLIB.
On August 19, 2022, UEM Sunrise stated that it was selling its 80.4 per cent stake in the South African real estate developer Roc-Union Proprietary Limited (Roc Union) to Olive Investment Trust for RM38 million.
Discussions on potential partnerships between Malaysia and Africa took place in 1994 between Malaysia's former Prime Minister, Tun Dr. Mahathir Mohamad, and South Africa's former president, President Mandela.
As a result, in 1998, a joint venture called Roc-Union was created by the subsidiary of UEM Sunrise and a local South African business called Vulindlela Investment.
The JV purchased a 70.2-acre freehold plot of property near the Point in Durban, South Africa. The JV is the project's master developer as well as the project's landowner.
The project's goals included generating investment possibilities and rebranding Durban as a cutting-edge African metropolis. The development will also contain office buildings, retail stores, hotels, and recreational areas among other improvements.
The South African project's remaining land bank currently consists of 31 acres, according to HLIB.
The sale from UEM Sunrise is contingent on the sale of the 19.6 per cent remaining stake by its joint venture partner, which must be finished within 30 days of August 19, 2022.
It is anticipated that the final settlement of the RM38 million sales revenues will be finished 33 days after August 19, 2022, or on September 22, 2022.
UEM Sunrise will completely leave the South African market post divestment.
After this divestment and the company's most recent purchase of land in Kuala Lumpur on August 4, UEM Sunrise's net gearing will grow to 0.53x (from 0.5x as of March 31, 2022), according to HLIB.
UEM Sunrise purchased a freehold plot of property in Kuala Lumpur's Jalan Sultan Yahya Petra (formerly known as Jalan Semarak) for RM384.04 million.
Its indirect wholly-owned subsidiary, Lucky Bright Star Sdn Bhd, entered into a sale and purchase agreement (SPA) with Nippponkey Sdn Bhd for the land acquisition.
The purchase will be partially funded with cash (RM235.8 million), with the rest sum to be paid in kind using the company's 107.82-acre Gerbang Nusajaya property in Iskandar Puteri, Johor.
The proposed project in Kuala Lumpur is anticipated to create a gross development value (GDV) of RM1.5 billion over four years, starting with its anticipated launch in 2024, according to UEM Sunrise.
Sufian Abdullah, chief executive officer of UEM Sunrise, reportedly said that the company has noticed a high and sustained demand for small to mid-sized products close to the Kuala Lumpur Convention Centre (KLCC) and priced below the RM1 million price point.
With the most recent addition, UEM Sunrise's landbank in the Greater Kuala Lumpur region now stands at roughly 265.3 hectares, or RM30.7 billion in GDV, providing the business with durable and sustainable growth over time.
By Sharen Kaur - Published in NST Property, August 23, 2022
sharen@nst.com.my
Johor Land Bhd (JLand), the real estate division of Johor Corp (JCorp), will start working on new property projects this year, as part of its development goals.
The company would take the lead in developing Sedenak Technology Valley in Kulai, Johor, starting with a 130-hectare prototype phase called Discovery City.
By early 2023, new projects will include the development of the 11.2-hectare Tebing@Bandar Tiram, which will build on the success of Bandar Dato' Onn, a project in the Bandar Tiram township.
The company will also spur urban rejuvenation initiatives in its 95-hectare Arena Larkin development in the Larkin district. A central park and commercial assets will be included in the development by the second quarter of 2024, and serviced apartments and small office/home offices will be added by the first quarter of 2025.
According to JLand executive director Mohd Yusof Ahmad, the company would pursue development projects with a targeted development plan and diversify its asset portfolio to include residential, commercial, and industrial real estate.
"Through strategic collaborations with corporate and community partners, JLand is vested to create, implement and deliver on solutions that encapsulate the best of digital technologies whilst embedding sustainability across the value chain. This will be our sustainable growth model moving forward," he said.
Sedenak Technology Valley, according to Mohd Yusof, is a 2,916-hectare integrated development supported by environmental, social, and governance principles and powered by digital technologies.
High-value industry clusters including data centres, logistics and warehousing, advanced electrical & electronic, medical device manufacturing, and green renewable energy will be included in the development.
According to Datuk Syed Mohamed Syed Ibrahim, chairman of JLand and president and chief executive officer of JCorp, JLand must "raise the bar" by building innovative and sustainable projects.
"Moving forward, we must be innovative...it's not an option! We must quickly and earnestly embrace and deploy proptech in our operations. To ensure not just JLand's sustainability for years to come, I urge you to reimagine a new JLand [to future-proof JLand] to ensure that JCorp via JLand will be able to further contribute to the economic development of the state while maintaining the entrepreneurial spirit that has driven JLand's success," he said on its next phase of expansion plans in conjunction with the launch of JLand's new brand identity yesterday.
JLand's new brand positioning, "Enhancing Wellbeing, Enriching Community," and new logo represent the company's next phase of expansion in residential, commercial, and industrial developments to reach a wider market and meet expected real estate demand based on changing demographic patterns.
By NST Property - August 23, 2022
Juwai IQI warned that the 9 per cent loss in newly planned residential supply and the 47 per cent drop in completed housing may soon lead to a price floor for residential properties in Malaysia.
The firm's head of Bumiputera segment Muhazrol Muhamad said that the new home supply will be sufficiently reduced to prevent further price decreases.
"As agents, we still see sufficient activity and buyer demand to keep us busy. We have more concern about supply. The pipeline of new supply is shrinking. Prices last quarter fell by 2.2 per cent, but we believe the shrinking pipeline will put a floor under future price falls.
"Prices drop when there are more properties than buyers, and developers are shifting the equation in favour of supply by reducing the flow of new supply onto the market. That's one thing we are hearing from buyers. They want to buy now while prices are lower because they don't know how long the opportunity will last. They don't want to pay more later by delaying their purchase," he said in a statement.
Inflation, in Muhazrol's opinion, maybe the main reason why developers choose not to start new initiatives.
Developers, he claimed, may protect themselves against the risk of inflation by keeping onto their projects and selling them at a profit in the future.
He said that while the pipeline is getting smaller and the overhang is shrinking, the supply is still adequate today.
However, he said that dwelling completions are dropping quickly.
Comparing the first quarter to the fourth quarter of 2021, completion fell by 47 per cent, from 25,074 to only 13,284.
The availability of newly planned homes has also decreased, he said.
"Over the past three quarters, planned new supply fell 36 per cent from 26,392 units to just 16,774. That's a significant change from the previous trend in which new planned supply increased steadily, quarter after quarter. Compared to Q4 of 2021, the new planned supply is down 9 per cent.
"Besides reducing supply, developers are also, in some cases giving significant discounts today. As soon as they clear the units they hope to sell in the short term, you can expect these discounts to disappear," Muhazrol said.
On interest rates, Muhazrol believes it will have no significant impact on Malaysia.
"First, inflation in Malaysia is lower than in many other countries, so our interest rates don't have to rise as far to get inflation under control. Second, even though the overnight policy rate has increased slightly to 2.25 per cent, that is still well below the historical average. Rates today are very close to historic lows, which limits any potential impact on the real estate market," he said.
By Sharen Kaur - Published in NST Property, August 23, 2022
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Hilton, a global hospitality corporation, has announced six significant signings for its portfolio of premium brands in the Asia Pacific (APAC) so far this year in response to increased excitement about luxury travel in the region.
The historic agreements include the 2024 opening of the Waldorf Astoria Kuala Lumpur, which will introduce the renowned Waldorf Astoria brand to Malaysia.
Waldorf Astoria Jakarta, which is anticipated to be the city's tallest building, will also open in 2024.
Japan's first Waldorf Astoria hotel will open in Osaka a year later.
Hilton will bring this top-tier luxury brand to Australia and Sydney's well-known Circular Quay with the opening of Waldorf Astoria Sydney in 2026.
The signing of these agreements would bring Hilton's pipeline of five-star properties in the region to 20, the company stated in a statement.
Over the next five years, Hilton said that Waldorf Astoria's presence in the Asia Pacific will be more than trouble.
Travelers will be treated to a stunning portfolio of over 50 luxury hotels around the Asia Pacific when the new properties open in the upcoming years, the hotelier said.
Hilton is the fastest-growing hospitality company in the Asia Pacific, according to Clarence Tan, senior vice president of development for the Asia Pacific at Hilton.
"Our recent signings and robust pipeline reflect the confidence that owners, developers, and investors have in Hilton to capture growing demand and deliver strong returns in APAC's most sought-after destinations. As we continue to pursue quality organic growth and enhance our network effect, we purposefully prioritise the right partnerships to deploy the right brands in the right locations.
"The future of luxury travel presents immense growth opportunities. While owners and developers are increasingly optimistic about the luxury travel sector, they remain highly selective when it comes to partners and brands that will optimise their yield and look to Hilton with confidence to expand their business," Tan said.
Asia Pacific offers a US$10 trillion consumption growth opportunity over the following ten years due to a growing middle class, rising consumer expenditure, and underserved accommodation industry.
Given that the APAC hotel investment volume increased by 46 per cent year over year to more than US$12 billion in 2021 and that investors were most interested in acquiring luxury or resort assets, the post-pandemic recovery has led to an increase in owner and developer interest in hospitality real estate.
In addition, the luxury travel market is predicted to grow as 42 per cent of APAC consumers who want to travel internationally look for luxurious experiences.
Nils-Arne Schroeder, vice president, Luxury, Asia Pacific, Hilton, said, "The strength and recognition of our luxury brands are key drivers of growth for our luxury portfolio in the Asia Pacific. With more destinations in the Asia Pacific becoming increasingly attractive to luxury travellers today, we are seeing a growing demand for our brands which are known globally for providing unforgettable stays, delivered with unrivalled hospitality and intuitive, personalized service."
As Hilton's network of luxury brands continues to expand into intriguing new areas and raise the bar for luxury hospitality to new heights, Schroeder said that the future of luxury travel in this region is more promising than ever.
Next year will also see the opening of Conrad Kuala Lumpur, marking the brand's debut in Malaysia.
Nearly 60 per cent of the Conrad estate worldwide, according to Hilton, is located in the Asia Pacific.
The brand already controls the greatest portion of Hilton's APAC luxury portfolio and will increase by over 50 per cent once the hotels in its pipeline open, according to the company.
