YTL Land target price revised downward

Project launches at Pantai Peak are likely to be postponed to second half 2008 due to slower-than-expected approval from the authorities, says DBS Vickers ResearchDBS VICKERS Research has cut its target price on shares of YTL Land Bhd by 18 per cent, citing a delay in project launch.The research house has revised its target price to RM2.70 from RM3.30 previously."Project launches at Pantai Peak are likely to be postponed to second half 2008 due to slower-than-expected approval from the authorities."We understand that the relocation of the current access to the development is slowing the speed of the approval," DBS Vickers said in a report yesterday.Read more>

(New Straits Times 20-2-2008)

Good start for SP Setia project

PETALING JAYA: SP Setia Bhd's Setia Eco Gardens project in Pulai, Johor Baru, garnered RM23mil sales at its maiden launch last Sunday. The sales were derived from two types of single-storey homes – Messius and Sotira – with starting price of RM185,800 and two models of double-storey houses, Norbana and Visellia, priced from RM249,800, SP Setia said in a statement. Group managing director and chief executive officer Tan Sri Liew Kee Sin said: “We are excited to expand the reach of our ecologically-friendly development concept to house buyers in Johor. “We believe this unique model, which strikes a fine balance between nature and the built environment, will capture the interest of the increasingly eco-conscious public.” Setia Eco Gardens is a “forward-thinking futuristic” township modelled after SP Setia’s award-winning brand of “Eco” themed developments. The 949-acre project is set to have 10,000 properties on completion in about eight years.

(The Star 20-2-2008)

SP Setia’s Eco Gardens rakes in RM23m sales

SP SETIA Bhd, a property developer, has sold houses worth some RM23 million in the maiden launch of its latest township project in Johor.Setia Eco Gardens, sprawled across 380ha, is an eight-year project located next to the Johor state's new administration centre in Bandar Nusajaya within the heart of the Iskandar Development Region. It will have some 10,000 houses. The initial sales were from two types of single-storey homes, namely Messius and Sotira, with a starting price of RM185,800. Also, SP Setia sold two models of double-storey houses, comprising Norbana and Visellia, priced at RM249,800 onwards. Read more>

(New Straits Times 20-2-2008)

Profit boost for Bandar Raya, SunCity

PETALING JAYA: Bandar Raya Development Bhd and Sunway City Bhd (SunCity) yesterday reported healthy profit growth in their last financial quarters, lifted by strong demand for high-end projects. The two property development companies, together with smaller-sized OSK Property Holdings Bhd, also expect better results, going forward, despite market concerns of tougher times ahead. “The group looks forward to a (financial) year (ending Dec 31) of strong growth, driven by the positive momentum in its property division,'' Bandar Raya told Bursa Malaysia yesterday. Read more>

(The Star 20-2-2008)

New Development: Taman Impian Putra

Usahama PNSB Dengan Dasar Biringin S/B

Putra Impiana offers value for money, says developer

PETALING JAYA: The property market in Puchong is booming with an increasing demand for landed properties, particularly high-end ones. According to the developer of Taman Putra Impiana, Usahasama Utama Sdn Bhd, its properties there have been enjoying good capital appreciation. “For instance, the value of the units in Phase 1 have increased by 15% since their launch in 2006, and are expected to rise by a further 15% by year-end,” Ronnie Wong, head of operations told theSun. Phase 1 of Taman Putra Impiana is sold out, while Phase 2 has achieved a take-up of more than 95%. To date, more than 20% of the 80 units in Phase 3 have been sold since its launch in mid-January. Future phases will include terraced houses, shop lots and low-rise medium cost apartments. It is scheduled for completion within the next three to four years with a gross development value of RM231 million.Read more

(The Sun 19-2-2008)

Kota Selat inks Danga Bay project deal

KUALA LUMPUR: Kota Selat Tebrau Sdn Bhd has inked a letter of intent (LoU) to develop residential apartments with Singapore-based Oakwood Asia Pacific Pte Ltd, in Danga Bay, Johor. Under the LoU, the parties will enter into a management agreement, offshore technical service and marketing agreement and trademark licence agreement. Construction will start in April. - Bernama

(The Star 19-2-2008)

SEGi sharply reduces bank debts

PETALING JAYA: SEG International Bhd (SEGi), which sold its flagship campus in Kota Damansara to AmanahRaya Real Estate Investment Trust last year, has reduced its bank borrowings to 20% of equity from 100% previously. It sold the college for RM145mil with an agreement to lease back the property for 15 years. SEGi is the owner of SEGi College Malaysia, which itself is a consolidation of the Systematic and Prime education groups. "We are targeting student growth of between 15% and 20% this year" - DATUK CLEMENT HIISEGi chief executive officer Datuk Clement Hii said this was achieved after the consolidation of the group, which started in 2006, and the sale of the Kota Damansara campus. Read more

(The Star 19-2-2008)

Al-'Aqar KPJ REIT may double in size

THE Al-'Aqar KPJ REIT, the world's first Islamic healthcare property trust, may buy more hospitals in Malaysia and abroad to double its size.It has bought 11 hospitals from KPJ Healthcare Bhd for about RM631 million so far. It may buy the remaining seven that KPJ has in Malaysia this year, said Datin Paduka Siti Sa'diah Sheikh Bakir.Al-'Aqar may even buy the six hospitals that are operated by KPJ overseas, she said."When we explained to them (the hospital owners), it opened their mind," said Sa'diah, managing director of KPJ Healthcare and a director of Damansara REIT Managers Sdn Bhd, which manages Al-'Aqar.KPJ operates three hospitals in Indonesia, two in Jeddah and one in Dhaka.Having a REIT has helped KPJ grow faster, Sa'diah said. The company may also reduce its debt and hike dividend payouts."We are asset light, we can spend (to expand)," she said.KPJ holds about 48 per cent of Al-'Aqar.Read more

(New Straits Times 19-2-2008)

HSL buying Mukah land for shipyard ops

KUCHING: Hock Seng Lee Bhd (HSL) will buy industrial land in Bandar Baru Tanjung Manis in Mukah Division for RM9.5mil to diversify into ship fabrication, maintenance and repair services. The company accepted the offer to acquire the 19.6ha from landowner Sarawak Timber Industry Development Corp (STIDC) at a ceremony witnessed by Sarawak Chief Minister Tan Sri Abdul Taib Mahmud on Saturday. Tanjung Manis, which is located within the newly launched Sarawak Corridor of Renewable Energy, has been identified as a key shipbuilding hub. Read more

(The Star 19-2-2008)

UEM World among most-active counters

PETALING JAYA: UEM World Bhd, which resumed trading yesterday after announcing a major restructuring involving the listing of property arm UEM Land Sdn Bhd, succumbed to profit taking after the morning's gains. One of the most actively-traded counters, UEM World recorded a volume of 42.6 million shares in a relatively weak market. The counter opened at the day's high of RM4.30. However, the positive momentum could not be sustained for long, as investors took profit. The stock shed 32 sen, or 7.77%, to RM3.80. On Friday, UEM World announced that it planned to list UEM Land on Bursa Malaysia and delist itself under a proposed restructuring exercise. Read more

(The Star 19-2-2008)

New Company: Bandar Putra, Tanjung Lumpur, Kuantan

Welcome to PASDEC HOLDINGS BERHAD

New Development: Hampshire Place

TAN & TAN DEVELOPMENTS BERHAD

Company Announcement: HOCK SENG LEE BERHAD

PURCHASE OF INDUSTRIAL LAND FOR SHIP BUILDING OPERATION

The Board of Directors of Hock Seng Lee Berhad (“HSL”) is pleased to announce that HSL Hydro Sdn Bhd (“HSL Hydro”), a wholly owned subsidiary of HSL has on 16 February 2008 accepted the offer from Sarawak Timber Industry Development Corporation (“STIDC”) to purchase a 48.43 acre plot of leasehold industrial land at Lot 1434, Block12, Buan Land District, Bandar Baru Tanjung Manis for a total cash consideration of RM9,493,248.60. The Land is to be acquired free from all encumbrances. Read more

(KLSE 18-2-2008)

Company Announcement: Faber Group Berhad

PROPOSED DISPOSAL BY FABER HOTELS HOLDINGS SDN BHD, A WHOLLY-OWNED SUBSIDIARY OF FGB, OF ITS 100% EQUITY INTEREST IN FABER LABUAN SDN BHD TO BERJAYA LAND BERHAD (“BLAND”) FOR A TOTAL CASH CONSIDERATION OF USD68.22 MILLION (OR APPROXIMATELY RM228.54 MILLION) (“PROPOSED DISPOSAL”).Reference is made to the announcements dated 10 December 2007, 4 January 2008, 17 January 2008, 29 January 2008 and 31 January 2008 in relation to the Proposed Disposal. On behalf of FGB, CIMB Investment Bank Berhad wishes to announce that the Proposed Disposal has been completed today. This announcement is dated 18 February 2008.

(KLSE 18-2-2008)

Company Announcement: FABER GROUP BERHAD

PROPOSED DISPOSAL BY FABER HOTELS HOLDINGS SDN BHD, A WHOLLY-OWNED SUBSIDIARY OF FGB, OF ITS 100% EQUITY INTEREST IN FABER LABUAN SDN BHD TO BERJAYA LAND BERHAD (“BLAND”) FOR A TOTAL CASH CONSIDERATION OF USD68.22 MILLION (OR APPROXIMATELY RM228.54 MILLION) (“PROPOSED DISPOSAL”).Reference is made to the announcements dated 10 December 2007, 4 January 2008, 17 January 2008, 29 January 2008 and 31 January 2008 in relation to the Proposed Disposal. On behalf of FGB, CIMB Investment Bank Berhad wishes to announce that the Proposed Disposal has been completed today. This announcement is dated 18 February 2008.

(KLSE 18-2-2008)

Company Announcement: Berjaya Land Berhad

ACQUISITION OF 100% STAKE IN FABER LABUAN SDN BHD WHICH HAS 70% INTEREST IN VIMAS JOINT VENTURE COMPANY LIMITED, OWNER OF SHERATON HANOI HOTEL AND TOWERS, HANOI CITY, VIETNAM FOR A CASH CONSIDERATION OF USD68.22 MILLION ("ACQUISITION"). This is in reference to our earlier announcements dated 10 December 2007, 17 January 2008 and 18 January 2008 in relation to the Acquisition.The Board of Directors of Berjaya Land Berhad is pleased to announce that the Acquisition is completed today.

(KLSE 18-2-2008)

Company Announcement: HEKTAR REAL ESTATE INVESTMENT TRUST

Acquisition by AmTrustee Berhad (“AmTrustee” or “Purchaser”) on behalf of Hektar Real Estate Investment Trust (“Hektar REIT”) from Wetex Realty Sdn Bhd (“Wetex” or “Vendor”), of a five (5) storey shopping complex known as “Wetex Parade” (“Mall”) and hotel tower known as “Classic Hotel” (“Hotel”) together with a basement car park held under H. S. (D) 19633, No. Lot PTB 10586 (“PTB10586”) and Geran 84560 (formerly known as Certificate of Title No. 2955), Lot No. 3675 (“Lot 3675”) both in Bandar Maharani, District of Muar, Johor Darul Takzim (collectively “Property”) for a cash purchase consideration of RM117,500,000 (“Acquisition of Property and Lease Back of Hotel”) Read more

(KLSE 18-2-2008)

CIMB closes 21 branches in rationalisation

PETALING JAYA: CIMB Bank and CIMB Islamic have closed 21 branches in the country under its branch rationalisation exercise, reducing the number to 362. CIMB Bank said last Saturday the closure of the branches was the second phase of CIMB Bank’s plans to optimise its distribution network after acquiring Southern Bank Bhd in March 2006. CIMB Bank head of consumer sales and distribution Sulaiman Mohd Tahir said the group was “right-sizing our branch network” by merging, closing or relocating branches located near each other or within the same area. “In addition to promoting efficiency and reducing costs, this move frees us to set up branches in under-served areas and better meet our customer needs,” he said. Read more

(The Edge 18-2-2008)

Exclusive homes by the Malacca River

CASA del Rio (M) Sdn Bhd, a unit of the Casa del Mar Group, expects its latest prestigious product, the Casa del Rio boutique hotel and serviced apartments in Malacca, to cater to rising room demand in the state by end-2009.The company is building the properties for RM85 million on a 1.3ha heritage site by the Malacca River. Aptly translated as "Home by the river", Casa del Rio will set forth Malacca as an international destination that offers world-class accommodation and residential living that will cater to all markets domestically and internationally.The properties are stylish and designed to capture the essence of the uniquely beautiful Peranakan House with its charming courtyards and the beauty of the Malacca Sultanate heritage.Group managing director Tan Sri Syed Yusof Syed Nasir said it is targeting to launch the five-storey serviced apartments, comprising 32 exclusive two- and three-bedroom units, by April."We have pegged the units at RM600 per sq ft to RM1,800 per sq ft and we are targeting local and foreign buyers," Syed Yusof told Business Times.Read more

(New Straits Times 18-2-2008)

Eversendai expects new deals to boost revenue

The engineering group is bidding for some RM2 billion worth of contracts EVERSENDAI Engineering Group of Companies expects revenue this year to be the highest on record on the back of recently secured contracts, which has helped broaden its order book by a third.For the 12 months ended December 31 2007, Eversendai posted a revenue of RM620 million, said group managing director Datuk A.K. Nathan."This year, we are expecting revenue to expand to a record," Nathan told Business Times in an interview.Read more

(New Straits Times 18-2-2008)

Group: We want a public hearing

A GROUP of owners and residents have filed for a judicial review by the High Court to compel the Kuala Lumpur City Hall (DBKL) to hold a public hearing on a proposed development at the KL side of Bukit Gasing. The application was filed on Feb 11 by 108 property owners from Maxwell Towers, Cameron Towers, Frasers Towers and Gasing Indah, all of whom live in the neighbourhood of the proposed development. Joint Action Committee for Bukit Gasing (JACBG) committee member Gary Yeoh said concerned owners and residents have had a series of meetings and submitted petitions to DBKL, but DBKL sent a letter on Dec 31, 2007 refusing to grant a public hearing. Read more

(The Star 18-2-2008)

Syed Mohamed going to Saudi Arabia for big offer

DATUK Syed Mohamed Syed Ibrahim not only wants to give his best in everything he does but also likes challenges that will enable him to bring out his best. This is the man whose name in the corporate circle is synonymous with the RM9.2bil smart township, @enstek in Negri Sembilan – a project by TH Properties Sdn Bhd where he was the chief executive officer. He left the company last month, after a four-year stint. Datuk Syed Mohamed Syed IbrahimIn March, the Universiti Malaya economics graduate will be heading to Saudi Arabia for a bigger challenge – to helm the development of the Madinah Knowledge Economic City (K.E.C. Madinah), a RM25bil project. “K.E.C. Madinah ranks third (in value and size) among the six economic cities to be developed throughout Saudi Arabia, after King Abdullah Economic City and Jazan Economic City,” said Syed Mohamed, 50. Read more

(The Star 18-2-2008)

POIC project attracts RM1.8bil investments

POIC Sabah Sdn Bhd's palm oil industrial cluster (POIC) project in Lahad Datu has steadily attracted quality investors since its launch over the past two years. POIC is Malaysia's first dedicated large-scale palm oil downstream industrial park on a 2,000ha site to be developed in the next 18 years. Datuk Dr Mohamad Hashim Ahmad TajudinTo date, it has secured investments worth RM1.8bil from 18 companies, including foreign groups from South Korea, Britain, Australia, Singapore and Hong Kong. Among its major investors are Chemical Company of Malaysia Bhd (CCM), Lahad Datu Edible Oils Sdn Bhd (part of the Wilmar-Kuok Group), QL Resources Bhd, Australia-based Sterling Biofuels International Ltd, South Korea-based ECO Solutions Co Ltd, and Union Harvest Group, which is partly owned by Sumifert Sdn Bhd that is linked to Japanese multinational Sumitomo Corp. Read more

(The Star 18-2-2008)

Work to start on Iskandar theme zones

WORK is to begin soon on the Iskandar Development Region's (Iskandar) three theme zones in Node 1, the flagship catalyst project to grow the first integrated international city there.Rim City Sdn Bhd (RCSB), the master concessionaire of Node 1, and Cultural Cluster Sdn Bhd (CCSB) have jointly announced that the definitive agreement has been made effective.In a joint statement recently, RCSB and CCSB said Node 1 is set on 931ha of prime greenfield land in Nusajaya, located between the second crossing to Singapore and the New Johor State Administrative Centre."CCSB is vested with the development of the Logistics Village, Creative Park and Heritage District, covering about 251ha, offering an abundant choice in residential and commercial properties and mixed development," it said.RCSB and CCSB said that the transaction is valued at RM1.2 billion. - Bernama

(New Straits Times 18-2-2008)

No imminent price bubble in KLCC enclave

In the final part of our focus on KLCC, we look at new price benchmarks and growing interest from real estate investors in the property hotspot

THERE is no imminent worry of a price bubble in the residential and commercial property markets around the Kuala Lumpur City Centre (KLCC) enclave given the existing strong demand, especially for quality developments, according to developers and property consultants. They concurred that the market was still able to absorb the incoming supply although in the short term, there might be an oversupply in the residential sector. In the next one to two years, 3,000 more residences will come on stream in addition to the existing 6,000 units. In the commercial market, a lack of Grade A office space has resulted in high occupancy and rental rates for offices. Zerin Properties Sdn Bhd chief executive officer Previndran Singhe said the price level of RM2,000 per sq ft for upmarket apartments now was reflective of the pent-up demand for such units in the KLCC area.

(The Star 18-2-2008)

Penang agency to build RM100m office tower

Besides Citigroup, the Penang Development Corp is wooing other Fortune 500 companies to open their offices at the 16-storey office tower in Bayan Mutiara PENANG Development Corp (PDC), the state's development arm, plans to build a RM100 million office tower in Bayan Mutiara on the island, which is set to be its flagship commercial building.It is also in talks with Citigroup to make the US bank the anchor tenant of the 16-storey building. PDC is also wooing other Fortune 500 companies to open their offices there."PDC has made its presentations and submitted proposals to Citigroup, and the latter is said to be deliberating the matter at its head office in the US."The corporation is also eyeing other top global names to invest there," an industry source said.

(New Straits Times 18-2-2008)

More to be done to improve infrastructure

THE success of the Kuala Lumpur City Centre (KLCC) enclave has raised the profile of Kuala Lumpur on the world map, but much still needs to be done for it to reach the status of other world-class cities such as New York, London and Singapore. The plus features of the KLCC include the integrated nature of the development comprising the Kuala Lumpur Convention Centre, three shopping complexes (Suria KLCC, Pavilion KL and Avenue K), a number of five-star hotels, as well as food and beverage outlets. According to Henry Butcher Marketing Sdn Bhd chief operating officer Tang Chee Meng, world-class cities have a wide range of social amenities and facilities such as shopping, healthcare, public recreational parks, places of worship and schools. Read more

(The Star 18-2-2008)

Grade A office in tight supply

ACCORDING to the Valuation and Property Services Department's third quarter 2007 (3Q07) commercial property stock report, the total existing stock of purpose-built offices in Kuala Lumpur stood at 372 properties with 65.04 million sq ft of space and an 83% occupancy rate. The report noted that with the completion of one building with 272,434 sq ft of space in 3Q, there was a further 17 properties with 8.02 million sq ft of space that were under construction. Planned supply for the quarter stood at 14 properties with about 12.36 million sq ft of space. In the Golden Triangle area that encompasses those streets nearest KLCC, there were a total of 44 properties with about 9.40 million sq ft of space and an occupancy rate of 82.1% while in the Jalan Ampang area comprising those streets neighbouring KLCC, there were 23 properties with 8.28 million sq ft of space. The occupancy rate for the area was 88.9%. One property with 106,778 sq ft was under construction in the Golden Triangle while planned supply for the area stood at two properties with a total of 692,560 sq ft. Read more

(The Star 18-2-2008)

Commercial property still a good buy

DUE to the tight supply and continued foreign interest in purchasing, on an en bloc basis, purpose-built Grade A office buildings in Kuala Lumpur in the past year, the commercial property segment of the market will remain a good bet in the short term. Besides foreigners, real estate investment trusts (REITs) and property funds have also been on the hunt for commercial properties. The Macquarie Global Property Advisors' acquisition of the City Square Centre for RM680mil from Asia Pacific Land Bhd announced in mid-2006 and completed last year among one of the first. The quarterly market reports of a number of property consultancies have also noted the continued interest among foreigners, in particular Middle Easterners and Singaporeans, in downtown Kuala Lumpur's commercial property development projects or in older Grade A office buildings. Read more

(The Star 18-2-2008)