Exciting times ahead for tourism sector

Sabah’s tourism industry, which has been identified as a key driver for the state’s development, can look forward to exciting times. In line with the Sabah state government’s aim to make every year a “Visit Sabah Year”, the Sabah Development Corridor (SDC) masterplan has incorporated three developmental phases, designed to transform Sabah into one of the most liveable places in Asia by 2025. In Phase One, the blueprint will focus on addressing the basics to support tourism development and lay foundations for its future growth. Phase Two will see Sabah strengthen its position as a premier eco-adventure destination via conservation and sustainable development of new tourism products, which will be anchored by signature resorts. Lastly, Phase Three will turn Sabah into a bustling metropolis within a tropical paradise.

(The Sun 30-1-08)

YNH Property rebounded

THE overnight rebound of 176.72 points on the Wall Street coupled with the better performances on the regional stock markets sent Bursa Malaysia rebounding higher yesterday. Its overall advancing counters out-paced its declining counters by 463 to 301. YNH Property Bhd staged a technical rebound yesterday. Its daily price trend closed at RM2.70, giving a day-on-day gain of 4 sen, or 1.50 per cent. Chartwise, YNH Property's daily price trend fell from its intra-day high of RM2.90 on January 15 all the way down to its intra-day low of RM2.60 on January 22, posting a total loss of 30 sen, or 10.34 per cent. Its daily price trend continued to trend above its intermediate-term uptrend (B1:B2). However, its short-term price trend is attempting to stage a re-test of the support of its uptrend support (B1:B2).YNH Property's daily price trend is likely to stage a re-test of its uptrend support (B1:B2). Further, its daily price trend will continue to consolidate further.

(30-1-2008 New Straits Times)

Boustead exercising option on two estates

PETALING JAYA: Boustead Holdings Bhd is exercising its first call option to buy back two oil palm estates totalling 3,771ha located in Tasek Glugor, Penang, and Pekan, Pahang, from Golden Crop Returns Bhd (GCRB) for at least RM110mil. The two estates were part of a sale and leaseback agreement between Boustead and GCRB in which the former had sold and subsequently leased back the estates for up to three, five and seven years. The exercise was to facilitate the securitisation transaction involving the issuance of RM442mil Sukuk al-Ijarah by GCRB and an RM300mil Musyarakah facility obtained from Lembaga Tabung Angkatan Tentera. To improve the performance of the fund, chairman of Boustead REIT Managers Sdn Bhd Tan Sri Lodin Wok Kamaruddin said in a statement a combination of strategies - existing plantations to be managed for maximum returns and selected plantation assets will be acquired - would be adopted.

(30-1-2008 The Star)

SP Setia’s RM1b Sabah foray

PETALING JAYA: SP Setia Bhd is making its entry into Sabah with a mixed residential and commercial property project in Tanjung Aru with a gross development value (GDV) at RM1 billion. SP Setia group managing director and chief executive officer Tan Sri Liew Kee Sin said the project “gives us a crucial stepping stone to springboard the SP Setia stable of brands into Sabah and capitalise fully on the state’s anticipated economic boom”. He said the expansion into east Malaysia was part of the group’s aim to diversify its geographical concentration into other high growth states in Malaysia as well as international markets. “Aeropod @ Tg Aru will be modelled after the creative hybrid commercial projects that we have launched such as Setia Walk and Setia Nexus 1 in the Klang Valley,” he said.

(30-1-2008 The Edge)

Kota Kinabalu Waterfront development unveiled

KUALA LUMPUR: Waterfront Urban Development Sdn Bhd (WUD) has unveiled its RM500 million Kota Kinabalu City Waterfront (KKCW), an integrated mixed seafront development situated on the waterfront of Kota Kinabalu. In a statement yesterday, it said the development would be done in collaboration with the Kota Kinabalu City Council (DBKK) within the Sabah Development Corridor (SDC). Prime Minister Datuk Seri Abdullah Badawi witnessed the signing of the tripartite agreement between WUD, Kuwait Finance House (Malaysia) Bhd and a consortium of Middle Eastern and Malaysian investors.

(30-1-2008 The Edge)

Launch of corridor heralds new era for Sabah

KOTA KINABALU: A total of RM105bil in investments, 900,000 jobs, a waterfront city, tourism projects and a RM600mil new Sabah Railway terminal ? these are among the things Sabahans will get when the Sabah Development Corridor (SDC) is completed in 18 years.

Five key thrusts of the SDC, which will be to:

1. make Sabah the gateway for trade, investment and tourism in the region.
2. transform the state into a harmonious and prosperous state regardless of race or religion.
3. make the state more technology-savvy to ensure a better quality of life.
4. provide job opportunities in the state.
5. make Sabah a comfortable state to live in with good quality of life accentuated with diverse cultures, heritage and environment.

(30-1-2008 The Star)

Launch of corridor heralds new era for Sabah

KOTA KINABALU: A total of RM105bil in investments, 900,000 jobs, a waterfront city, tourism projects and a RM600mil new Sabah Railway terminal these are among the things Sabahans will get when the Sabah Development Corridor (SDC) is completed in 18 years.

Five key thrusts of the SDC, which will be to:

1. make Sabah the gateway for trade, investment and tourism in the region.
2. transform the state into a harmonious and prosperous state regardless of race or religion.
3. make the state more technology-savvy to ensure a better quality of life.
4. provide job opportunities in the state.
5. make Sabah a comfortable state to live in with good quality of life accentuated with diverse cultures, heritage and environment.

(30-1-2008 The Star)

Sabah nets 13 deals in minutes

KOTA KINABALU: One of the agreements was between the state Infrastructure Development Ministry and SP Setia Bhd for the redevelopment of the 20ha Sabah Railway terminal in Tanjung Aru near here based on the KL Sentral model utilising RM600mil under the Private Finance Initiative concept. The others included:

1. THE development and promotion of Sabah as a meeting, incentive and exhibition (MICE) destination by Yayasan Sabah, Carlota’s Borneo Holidays Sdn Bhd and East West Executive Travellers Ltd of Singapore;
2. THE setting up of a bulking facility at the Palm Oil Industry Cluster (POIC) in Lahad Datu by POIC Sabah Sdn Bhd, PMB and POIC Bulking Sdn Bhd;
3. CONSTRUCTION of the Kota Kinabalu City Waterfront Development project by the Kota Kinabalu City Hall, Waterfront Urban Development Sdn Bhd, Intonasi Sdn Bhd and Kuwait Finance House (Malaysia) Bhd; and
4. THE provision of fish-landing facilities in Tawau, Sandakan and Lahad Datu by Innoprise Corporation Sdn Bhd, Felda and WTC Marine Ventures Sdn Bhd.
The eight MoUs inked yesterday were for:
1. THE establishment of a health and medical tourism centre by Borneo Eco Healing Centre and US-based Ariana Cosmetic Surgery and Laser Centre;
2. THE construction of condominium complexes and five-star hotels by Suria Capital Holdings Bhd, IJM Bhd, Pavilion International and Glomac Bhd;
3. THE development of tourism centres, townships and an SME Park by the Sabah Economic Development Corporation (Sedco) and Longyuan Construction Group Co of China;
4. A project in the POIC by Sawit Kinabalu and Sime Darby Sdn Bhd;
5. THE production of crude Jatropha biodiesel fuel by Sabah Land Development Board, Nihon Biotec Inc of Japan, Kelana Stabil (M) Sdn Bhd, Jadora LLC and TKM Resources Sdn Bhd;
6. AN agrotourism project as well as an orang-utan rehabilitation project at Ulu Segama in Lahad Datu by the Sabah Forestry Department and Sime Darby Plantations Sdn Bhd;
7. THE development of aquaculture at Darvel Bay in Lahad Datu by the Sabah Ministry of Agriculture and Food Industry and Dubai-based Semakan Group; and
8. A proposed Jatropha curcas research and development and seeds production centre by the Sabah Land Development Board and Borneo Alam Ria Biomatrix (Sabah) Sdn Bhd.

(30-1-2008 The Star)

SP Setia in maiden Sabah venture

MALAYSIA'S most valuable property company, SP Setia Bhd, has unveiled plans for its first venture in Sabah, a RM1 billion mixed development project in Tanjung Aru. Under the agreement, SP Setia will build a transport terminal and new headquarters and ancillary buildings of Jabatan Keretapi Negeri Sabah on part of 24 hectares near the Tanjung Aru township and the Kota Kinabalu International Airport. In return, it will have the rights to develop the balance of 17ha into a mixed residential and commercial project, named Aeropod @ Tg Aru. The project will have a shopping mall, a five-star as well as a three-star hotel, and residential condominiums, among other developments.

(30-1-2008 New Straits Times)

Subang Terminal 3 refurbishment 'in the works'

SUBANG SkyPark Sdn Bhd is expected to announce next month the award of major refurbishment works to Terminal 3 of Subang airport, currently catering to Firefly and Berjaya Air passengers. Last month, the government had awarded Subang SkyPark a 59-year lease through Malaysia Airports Holdings Bhd to undertake the transformation of Terminal 3 into an ultra-modern general and corporate aviation hub. Covering 9,000 sq ft, the international standard but locally designed SkyLounge is expected to be ready by the end of March 2008.

(30-1-2008 New Straits Times)

QSR to spend RM20m on new Pizza Hut, KFC outlets

FAST food chain operator QSR Brands Bhd plans to open 20 new outlets this year to further strengthen its lead in the segment, and at the same time help boost the group's earnings for 2008. At present, its brands such as Pizza Hut commands 70 per cent of the pizza market in Malaysia while KFC Holdings Malaysia Bhd which is 43 per cent owned by QSR has over 460 quick service outlets in Malaysia, Singapore, Brunei and Cambodia. In the first nine months ended September 30 2007, QSR recorded a net profit of RM48.8 million on a revenue of RM339 million.

(30-1-2008 New Straits Times)

REITs on the rise in Malaysia

KUALA LUMPUR: Although it is a standard practice in certain countries for property developers to become Real Estate Investment Trust (REIT) promoters and to inject their own projects into the trust, Malaysians are still skeptical and considers it an “asset dumping” exercise by the companies, said Asia Pacific International Real Estate Federation (FIABCI) Regional Secretariat secretary general Kumar Tharmalingam. Several developers that have plans to enter the REIT market this year include TA Properties Sdn Bhd, Bandar Raya Development Berhad, UEM Land Sdn Bhd and Sunway City Bhd. Budget 2008 proposed an increase in foreign ownership on REITs management companies to 70% from 49%, with the bumiputera-ownership requirement remaining at 30%.

(The Sun 29-1-08)

Property to rise above stock market volatility

PETALING JAYA: There is still growth potential in the local property market although the prevailing volatility of the stock market has turned property consultants and analysts more cautious of the upside. While concerned that the recent stock market jitters, which saw the benchmark Kuala Lumpur Composite Index (KLCI) tumble 54.12 points or 3.84% last Tuesday, would affect property stocks in the near term, they are upbeat that the sector is able to ride out the negative investor sentiment. Property consultant DTZ Nawawi Tie Leong Sdn Bhd executive director Brian Koh said volatile markets would present both threats and opportunities to institutional funds, who may view real estate in Malaysia as an attractive asset class, given a lack of alternatives in volatile markets elsewhere.

(29-1-2008 The Edge)

SP Setia warrants surge 112% on debut

KUALA LUMPUR: Warrants of SP Setia Bhd surged 112.5% or 54 sen to close at RM1.02 yesterday from their reference price of 48 sen on their first day of listing. The warrants of the property developer opened at 88 sen, up 40 sen. There were 30.64 million units done at prices ranging from 88 sen to RM1.04. However, its share price closed unchanged at RM4.96. SP Setia had issued 168.15 million warrants on the basis of one warrant for every four existing shares held in SP Setia.

(29-1-2008 The Edge)

BLand in pact on Vietnam bridge project

KUALA LUMPUR: Berjaya Land Bhd (BLand) has entered into an agreement in principle with three Vietnam companies on the proposed construction of a bridge across the Dong Nai River linking Nhon Trach District, Dong Nai Province to Ho Chi Minh City. In a statement to Bursa Malaysia yesterday, BLand said it entered into an agreement with Vietnam’s Tin Nghia Co Ltd (TNC), Development Investment Construction Corporation (DIC) and Vietnam Infrastructure Hexagon Ltd (VIHL) on the proposed bridge project. Under the agreement, BLand said the parties had agreed to establish an enterprise either in the form of a limited liability company (LLC) or a joint stock company or to form a business cooperation (JV) to invest in and carry out the bridge project.

(29-1-2008 The Edge)

BLand ratings unaffected by move to drop Viet project

BERJAYA Land Bhd's decision to drop a planned transportation infrastructure job in Vietnam last week did not stir concerns among analysts, who believe that the firm will be better off picking jobs that are more financially viable.The group is already occupied with five property development projects in both Hanoi and Ho Chi Minh City and they are not too worried about a single infrastructure job that did not pan out well. BLand last Friday said that it will not proceed with a plan with Tin Nghia Co Ltd, a state-owned company from the southern Dong Nai Province, on the overall development of Nhon Trach District that included its transportation network. The companies have decided to let the memorandum of understanding signed in late 2006 lapse, after a 12-month extended feasibility study done by BLand.

(29-1-2008 New Straits Times)

Call to allow full foreign ownership of REIT firms

REAL estate investment trusts (REITs) in Malaysia can grow further if complete foreign ownership of REIT management companies are allowed, said a top spokesperson for the International Real Estate Federation of Asia Pacific (FIABCI). Currently, REIT management firms are allowed up to 70 per cent foreign ownership while the minimum Bumiputera ownership requirement is 30 percent.

(29-1-2008 New Straits Times)

Sabah’s three-pronged plan

THE idea initially was confined to Sabah’s east coast, specifically Sandakan, Lahad Datu and Tawau. But it grew. Today the term “corridor” is a misnomer, as the Sabah Development Corridor (SDC) encompasses the entire state, including the interior regions and the burgeoning west coast. The SDC, which will be launched by Prime Minister Datuk Seri Abdullah Ahmad Badawi today, is a three-pronged blueprint designed by the Institute for Development Studies, Sabah, targeted primarily at agriculture, tourism and manufacturing. At the same time, its architects hope that subsidiary industries will also enjoy spin-off benefits. The SDC is a three-phase programme. Under the first leg spanning 2008-2010, the RM147mil injection into the agropolitan project, involving the planting of rubber and fish cultivation in Pulau Banggi, will redress pockets of poverty on that island.

(29-1-2008 The Star)

Sri Kembangan project to drive LBI Capital

SHAH ALAM: LBI Capital expects its commercial development in Sri Kembangan to be its main revenue contributor for the financial year ending Dec 31, 2008.Managing director Datuk Jeffrey Ng Chin Heng expressed confidence in the project comprising 100 units of two- and three- storey shoplots in Taman Pinggiran Putra in Sri Kembangan, which have a gross development value (GDV) of RM80mil. This project has been well received and has achieved 85% take-up since it was launched at the end of last year,? he said after the company EGM yesterday. Ng said the company planned to launch by year-end an industrial park on 36 acres in Puchong Perdana with a potential GDV of RM70mil.

(29-1-2008 The Star)

Morubina pushes Kinta Riverfront to Chinese real estate investors

HEFEI: Developer Morubina Sdn Bhd is looking to China to attract investors for its latest project, Kinta Riverfront. On the Kinta Riverfront project, Ting said sales had been swift with some 60% snapped up, valued at a total RM45.5mil. Work on the project had been completed 30% and was due for completion by 2009. The RM80mil 20-storey Kinta Riverfront Hotel and Service Suites project offers 239 units priced between RM199,999 and RM2.9mil each.

(28-1-2008 The Star)

Crest Builder to sustain robust earnings in FY08

PETALING JAYA: Crest Builder Holdings Bhd expects to sustain its strong earnings performance in 2008 on the back of RM920 million worth of construction projects in hand and significant contribution from its property development projects, its managing director Yong Soon Chow said. The company plans to build service apartments with a gross development value (GDV) of RM80 million in Alam Hijau’s Phase 3 and commercial development comprising shops and an office tower worth RM120 million in Phase 4. Both phases are pending the authority’s approval and are expected to be launched in the second half of this year. Phase 5 of Alam Hijau, a commercial development, is still in the early design stages. Crest Builder is also undertaking a commercial development project, Tierra Crest, in Kelana Jaya and a high-end condominium project in Mont’ Kiara.

(28-1-2008 The Edge)

Genting to gain from Landmarks’ gaming foray

KUALA LUMPUR: Landmarks Bhd’s possible venture into gaming operations in Indonesia’s Bintan Island has put its parent Genting Bhd in the spotlight as analysts believe it would enable the latter to expand its clientele base amid a wider regional presence. Moreover, the presence of a gaming unit within Landmarks’ RM4.07 billion “Bintan Treasure Bay” mixed development in Bintan Island’s Treasure Bay enclave is also seen as a catalyst for potential upsides in the value of real estates in the integrated resort, analysts said. Speaking to The Edge Financial Daily, a Landmarks official said the company would study the feasibility of running a gaming unit in Bintan after the green light from the Indonesian authorities.

(28-1-2008 The Edge)

SDB to launch properties worth RM1.6b

KUALA LUMPUR: Property developer Selangor Dredging Bhd (SDB) plans to launch RM1.6 billion worth of real estate locally and abroad in the next three years, with overseas projects expected to contribute about 30% of turnover in fiscal year 2010. The former mining company, which started building properties in 2002 and owns Hotel Maya here, hopes to unveil the first of its overseas real estate developments — two projects in Singapore collectively valued at some RM410 million — within the next few months. Earnings for the current financial year to March 31, 2008, and for FY09 would be largely underpinned by property development income, helped by some RM230 million of unbilled real estate sales, SDB managing director Teh Lip Kim said.

(28-1-2008 The Edge)

More projects ahead of listing

TTDI Development Sdn Bhd (TTDI) is all set to launch several projects this year in its run-up to its proposed listing on Bursa Malaysia, expected to be one of the largest property initial public offerings (IPO) slated for 2008. The upcoming developments include the newly launched Platinum Park and at least four more: TTDI Alam Impian, TTDI Kajang, The Valley in Ampang and Laman Seri Business Park in Shah Alam.TTDI Alam Impian, a 200-acre mixed development of 1,600 residential units in Alam Impian, Shah Alam, would be launched later this year. The houses would be priced between RM300,000 andRM500,000 for corner units. TTDI Kajang, a 113-acre freehold residential development comprising terraced and semi-detached houses would also be launched later this year. The 35-acre The Valley is a 143-unit upmarket gated and guarded bungalow project in Bukit Indah, Ampang. The semi-detached houses called linked villas would be priced from RM2.5mil while the bungalows would be priced from RM3mil to RM4.5mil.

(28-1-2008 The Star)

Developer counts on Southgate

MAH SING Group Bhd foresees good response for its contemporary European-designed Southgate commercial properties in view of the high demand and short supply of commercial properties in Kuala Lumpur.Deputy chief operating officer Andy Chua said the commercial market is facing a shortage of supply and the demand for good office space, especially in Kuala Lumpur, was “very high”.“For example, he said, Menara YNH was sold for RM1,230 per sq ft, Glomac tower for RM1,120 per sq ft and Bumiputra Commerce building for over RM700 per sq ft.

(28-1-2008 The Star)

Mah Sing project draws foreign interest

MAH Sing Group Bhd, which is actively involved in commercial developments, is in talks with three potential foreign buyers for en bloc sale of two of the five blocks in its Southgate Commercial Centre in Kuala Lumpur.It has begun talks early this month with buyers from London, Singapore and the Middle East, who are keen to purchase the seven-storey 900,000 sq ft Apex Block.The company has also started to approach buyers for the en bloc sale of the main block called Corporate Building, an eight-storey building with 218,000 sq ft built-up area. It fronts Jalan Tun Razak/Jalan Sungei Besi.The Corporate Building and Apex have a floor plate of about 26,000 sq ft and 16,000 sq ft respectivelyThe freehold development's five blocks are called Corporate Building, Apex, Vox, Vivo and Verves.

(28-1-2008 The Star)

Platinum Park to push TTDI into big league

TTDI Development Sdn Bhd's newly launched Platinum Park, a world-class RM3.5bil high-end integrated residential and commercial development in Kuala Lumpur's Golden Triangle, has catapulted the company into the big league of property development.The sale of the 50-storey Menara Felda, the tallest of seven iconic towers in Platinum Park, to the Federal Land Development Authority (Felda) for RM640.7mil last week is a major achievement, not only for the company but also for the whole industry that needs this kind of “fireworks” to brighten the “gloom and doom” of a US and possibly global recession. ith the launch of Platinum Park, about 700 metres from the Petronas Twin Towers and Suria KLCC shopping centre, TTDI is poised to regain its former glory not only as an industry leader but also as a major player to be reckoned with.

(28-1-2008 The Star)

Mah Sing: All components in Southgate for sale

PROPERTY developer Mah Sing Group Bhd says all components of its RM256 million Southgate Commercial Centre on Jalan Tun Razak, Kuala Lumpur, are for sale. The three remaining blocks of the development, namely Vox, Vivo, and Verve, will offer 226 office suites and 63 retail lots. Prices for office suites (range from 592 to 1704 sq) start at RM430 per sq ft, while prices for retail lots (535 to 2095 sq ft) begin from RM800 per sq ft.

(28-1-2008 New Straits Times)

Project to be 'Mid Valley of Petaling Jaya'

PJCC Development Sdn Bhd has sold RM50 million of properties under the first phase of its Petaling Jaya Commercial City (PJCC) development project. The first phase, which is only 45 per cent complete, comprises the retail city precinct that offers three-, five- and eight-storey shop-lots. The book value of the retail city is RM80 million, while the gross development value of the whole project is RM500 million. The overall development, scheduled for completion in 2014, houses four precincts over 13ha and will be developed in three phases. PJCC Development is the owner and developer of the PJCC project.

(28-1-2008 New Straits Times)

Buyers snap up Gaya Bangsar units

NATIONAL property development agency UDA Holdings Bhd has sold 95 per cent of Gaya Bangsar, its latest high-end development in Kuala Lumpur, within a week of the pre-launch. Gaya Bangsar is a 34-storey full-service luxury condominium tower that comprises 285 residential units ranging in size from 671 sq ft to 1,610 sq ft. The units are priced between RM350,000 and RM900,000 each. UDA expects to begin construction on the 0.5ha site next to Dataran Maybank in July.

(28-1-2008 New Straits Times)