SP Setia posts RM48.5m profit

PETALING JAYA: SP Setia Bhd posted net profit of RM48.52mil for the first quarter ended Jan 31, up 3.8% from RM46.76mil in the previous corresponding period, boosted by its property development in the Klang Valley, Johor Baru and Penang. In a statement to Bursa Malaysia yesterday, the company said revenue rose 19% to RM303.65mil from RM255.21mil. Earnings per share was 4.81 sen compared with 4.56 sen before. Apart from property development, the group’s construction and wood-based manufacturing activities contributed to its earnings. SP Setia said its focus for the current financial year was to transform itself from being largely a Malaysian developer of residential homes to a fully integrated regional real estate developer. Commenting on its first integrated commercial project, Setia Walk in Pusat Bandar Puchong, the company said sales had been encouraging. On its overseas ventures, SP Setia said it targeted to launch its first overseas project in Vietnam by July. Meanwhile, Reuters reported that SP Setia expects to double 2007 earnings within four years and predicts that its Vietnamese business will turn a profit by 2009.

(The Star 28-3-2008)

SP Setia Q1 net profit up 3.8% at RM48.52m

PETALING JAYA: SP Setia Bhd posted net profit of RM48.52mil for the first quarter ended Jan 31, 2008, up 3.8% from RM46.76mil a year ago, boosted by its property development in the Klang Valley, Johor Bahru and Penang. The company said yesterday revenue rose 19% to RM303.65mil from RM255.21mil. Earnings per share was 4.81 sen compared with 4.56 sen. Apart from property development, the group’s construction and wood-based manufacturing activities contributed to the earnings. SP Setia said its focus for the current financial year was to transform itself from being largely a Malaysian developer of residential homes to a fully integrated regional real estate developer. Commenting on its first integrated commercial project, Setia Walk in Pusat Bandar Puchong, the company said sales had been encouraging. “Along with the solid contributions by its established residential developments in the Klang Valley, Johor Bahru and Penang, total sales as at Feb 29, 2008 amounted to RM646mil,” it said, adding this was significantly higher than the RM290mil a year ago. On its overseas ventures, SP Setia said it targeted to launch its first overseas project in Vietnam by July this year.

(The Star 28-3-2008)

IJM may make 50 sen-a-share capital payout

IJM Corp Bhd, the country's second biggest builder, may soon declare a capital repayment, while its property unit is close to finalising as many as two en-bloc sales that could help boost profits, UBS Investment Research says in a report."We estimate a pending capital repayment of 50 sen a share and a recurring dividend of 15 sen a share," the investment house said, without disclosing the basis of its estimate.In 2007, IJM paid a dividend of 15 sen a share, of which five sen a share was in the form of a special cash payment.UBS also believes there is potential earnings upside from en-bloc property transactions from IJM's 65 per cent-owned property unit, IJM Land. "According to management, it is finalising two en-bloc commercial transactions worth RM400 million. Our earnings estimates do not assume any en-bloc transactions. "We estimate these two transactions could add RM70 to RM80 million to our financial year 2009 net profit forecast of RM446 million, if they go through," the UBS report said. Read more

(New Straits Times 28-3-2008)

New Development: Bandar Saujana Putra and Min Gardens

LBS is also launching 41 units of 2-storey houses, named Min Gardens, with an estimated GDV of RM 11.3 million. Lim said Min Gardens’ properties, each with built-ups of 1,400 sq ft, are expected to be priced from RM260,000 onwards. The developer is currently offering 48 units of 2-storey terraced houses priced from RM250,000 onwards, with a built-up size of 1,200 sq ft each.LBS has a 500-acre undeveloped land bank in Bandar Saujana Putra. It has to date, completed and sold 4,000 units of low and medium cost properties in the 820-acre, RM5 billion-township since its launch in 2003. When completed over the next three to four years, Bandar Saujana will have more than 12,000 units of mixed development properties.In Taman Tasik Puchong also in Selangor, LBS is launching projects with a GDV of RM32.44 million comprising 90 units of 1,200 sq ft 2-storey link houses and 48 units of 1-storey cluster link houses. These units are also expected to be priced from RM200,000 onwards.And in Taman Perindustrian Tasik Perdana in Selangor, LBS will launch projects worth RM90.4 million comprising 40 units of 1 1/2 –storey factory lots measuring 2,000 sq ft and priced from RM500,000 onwards, and 44 units of 1 1/2 –storey semidee factory units with 7,500 sq ft and priced from RM 1 million onwards. Another 16 industrial lots will also be sold in the vicinity with prices ranging from RM1.3 million onwards.By early next year, LBS will launch 22 units of semidees in Carnation Park, Cameron Highlands with an estimated GDV of RM12.6 million. The houses will have built-ups of 2,700 to 2,900 sq ft. Prices have yet to be determined.

(The Sun 27-3-2008)

New Development: Bandar Saujana Putra (LBS Bina)

SHAH ALAM: Local developer LBS Bina Group Bhd has slated four projects worth more than RM330 million for launch in the Klang Valley this year.According to its managing director Datuk Lim Hock San, they will be focusing on building medium and medium-high cost properties.At its flagship development of Bandar Saujana Putra in Selangor, LBS is expected to launch medium and medium-high end houses with an estimated gross development value (GDV) of more than RM179 million this year. “We are waiting for approval from the relevant authorities on these projects and will make an announcement in the coming months,” said Lim.Among the projects slated for Bandar Saujana Putra are 78 units of 3- and 5-storey shop officeswith a GDV of RM71.5 million, 67 units of 2-storey linked houses with built-up area of 990 sq ft, and 74 units of 2-storey linked houses with built-up of 1,400 sq ft. The houses have an estimated GDV of RM37.8 million, priced from RM200,000 onwards.“We will also be launching 15 industrial lots with an average acreage of 1.38 acres,” said Lim, after the company’s EGM recently. The industrial lots are expected to carry a GDV of RM78.7 million.

(The Sun 27-3-2008)

Selangor to review hillslope projects

SHAH ALAM: All hillslope development projects in Selangor will be reviewed, said its Menteri Besar Tan Sri Khalid Ibrahim yesterday. Speaking to reporters after chairing the first state executive council meeting, he said exco member Ronnie Liu, who is in charge of local government, has been tasked with finding ways to resolve the problem of hillslope projects. He said Liu will meet presidents from local councils like Ampang Jaya where there are hillslope projects and advise the executive council on what measures to take on this matter. Hillslope developments have been equated with the rape of hills, and this has been a sore point as such projects continue to be done despite statements made by national leaders over the years, including prime ministers. On another matter, Khalid revealed that the state government wanted to revive the controversial Port Klang Free Trade Zone. “With RM4.5 billion invested in that project, we do not see the vibrancy and dynamism in that area. If you have that sort of real estate not being utilised, can you imagine the state not having the responsibility to take care of that area?” he asked. He believed his involvement in the privatisation of Port Klang services in 1992 as a former chairman of then Kontena Nasional Sdn Bhd will help him to carry out the task.

(The Edge 27-3-2008)

SP Setia in JV with DBKL on mega project near Mid Valley

KUALA LUMPUR: SP Setia Bhd is set to finalise a joint venture (JV) agreement with Dewan Bandaraya Kuala Lumpur (DBKL) to develop high-rise residential cum commercial project on a 20-acre (8.1ha) plot located opposite the Mid Valley City. Speaking to reporters at Invest Malaysia 2008 yesterday, SP Setia’s managing director Tan Sri Liew Kee Sin said the company secured an approval from the Economic Planning Unit (EPU) seven years ago for the project. Although it had subsequently signed a memorandum of understanding (MoU) a few years ago with the DBKL, a privatisation agreement is still pending. “We expect to finalise a deal with DBKL soon and launch the project next year,” said Liew. However, he declined to reveal the value of the project. Squatters residing on the land were relocated to nearby apartments recently, indicating that the project is making progress. The JV between SP Setia and DBKL will be similar to previous deals such as the one between IGB Group Bhd and DBKL for the now completed Mid Valley City project. Under such deals, DBKL would provide land while developers such as SP Setia or IGB carry out the development work and invest in the infrastructure. Read more

(The Edge 27-3-2008)

MRCB: Subway system is several times costlier than monorail

KUALA LUMPUR: While the suggestion from Penang’s new Chief Minister Lim Guan Eng to build a subway system in Penang as opposed to a monorail is technically feasible, it will cost considerably more, said Malaysian Resources Corp Bhd (MRCB) managing director Shahril Ridza Ridzuan at Invest Malaysia 2008. MRCB was picked to build the monorail system by the Federal government. “Engineering-wise it is not so much an issue. At the end of the day, it is whether it meets the requirements of what they (the state and federal governments) are trying to achieve on a technical point, or whether from a cost point of view it is attractive. “A tunnel solution for public transport will cost substantially more, you are talking about maybe a factor of four or five times more depending on soil conditions,” said Shahril. Lim said recently that a subway rail system could be considered over an overhead structure, as a subway system could also double up as a flood mitigation tunnel. Read more

(The Edge 27-3-2008)

Danga City Mall to open in Johor in July

ONE of the biggest shopping complexes in Johor Baru - Danga City Mall - will open in July with Metrojaya as its anchor tenant.The tenancy agreement will be signed on Friday between the complex owners, Danga City Mall Sdn Bhd (DCM) and Metrojaya Bhd’s wholly-owned subsidiary, MJ Department Stores Sdn Bhd.DCM director Gary Lee Seaton said the mall is scheduled to open in July as soon as Metrojaya completes its renovations and fittings.News of the opening has spurred a great deal of interest in Johor Baru with strong enquiries from Malaysian and Singapore-based retailers and traders for take-up of the 500-odd shop lots in the complex. — Bernama

(New Straits Times 27-3-2008)

Penang mulls subway system instead of monorail

PENANG is mulling the idea of building a subway system as a long-term solution for its traffic and flooding problem, instead of the elevated monorail project mooted by the federal government."The final say on this matter, however, rests with the federal government, since the monorail is a project which is to be financed by the federal authorities," Penang Chief Minister Lim Guan Eng said.He was speaking to reporters after chairing his second state executive council meeting in George Town yesterday.Lim said he realises that an underground transportation system will cost at least three times more than the monorail system. The chief minister, who received a courtesy call on Tuesday from Malaysian Resources Corp Bhd (MRCB) officials, said he was briefed on the monorail project."The parties involved in the monorail project said that they are unable to secure financing for a subway system," Lim said.MRCB, together with Penang Port Sdn Bhd and Scomi Engineering Bhd's subsidiary, Scomi Rail Bhd, have jointly bid for a monorail project on the island.In January, Syarikat Prasarana Negara (SPNB) issued a letter of intent to the consortium for the monorail job. The monorail is said to comprise two lines measuring 25km.The first route proposed is between the Penang International Airport and George Town, while the second line will be from George Town to Tanjung Bungah.

(New Straits Times 27-3-2008)

SP Setia eyes RM520m profit

SP Setia Bhd, Malaysia's most valuable property company, aims to double its net profit in four years, helped by new product offerings and overseas expansion.The company expects overseas businesses to contribute equally to its net profit and revenue by 2012, said group managing director and chief executive officer Tan Sri Liew Kee Sin.SP Setia, which has a market value of some RM5 billion, made a net profit of RM260 million for the 12 months ended October 31 last year. Its revenue was flat at RM1.15 billion."We are looking at launching new projects in nearby neighbouring countries, which we can effectively manage. "There is huge potential in Southeast Asia. Besides maintaining a steady growth in Malaysia, we will launch projects in new markets," Liew told reporters at Invest Malaysia 2008 in Kuala Lumpur yesterday. Read more

(New Straits Times 27-3-2008)

Headline inflation rises at slower pace of 2%

THE headline inflation rate, as measured by the annual change in the Consumer Price Index (CPI), increased at a slower pace of 2% in 2007 (2006:3.6%). The level of inflation was within the forecast range of 2% to 2.5%. While supply factors remained important, they contributed less to overall inflation, as the impact of earlier adjustments to administered prices waned in the first quarter of 2007.Read more

SP Setia Q1 net profit up 3.8% at RM48.52m

PETALING JAYA: SP Setia Bhd posted net profit of RM48.52mil for the first quarter ended Jan 31, 2008, up 3.8% from RM46.76mil a year ago, boosted by its property development in the Klang Valley, Johor Bahru and Penang. The company said yesterday revenue rose 19% to RM303.65mil from RM255.21mil. Earnings per share was 4.81 sen compared with 4.56 sen. Apart from property development, the group’s construction and wood-based manufacturing activities contributed to the earnings. SP Setia said its focus for the current financial year was to transform itself from being largely a Malaysian developer of residential homes to a fully integrated regional real estate developer. Commenting on its first integrated commercial project, Setia Walk in Pusat Bandar Puchong, the company said sales had been encouraging. “Along with the solid contributions by its established residential developments in the Klang Valley, Johor Bahru and Penang, total sales as at Feb 29, 2008 amounted to RM646mil,” it said, adding this was significantly higher than the RM290mil a year ago. On its overseas ventures, SP Setia said it targeted to launch its first overseas project in Vietnam by July this year.

(The Star 27-3-2008)

Development anarchy in KL

IF only the rules are followed, there would not be such a mess in the nation’s capital city. True? Khan: ‘Now everything is topsyturvy’This is the question on the minds of city folks each time they see developments encroaching into green areas in their neighbourhoods. The rules in question are the ones contained in the Kuala Lumpur Structure Plan 2020 and the Federal Territory (Planning) Act 1982. The mess? The unlawful hillside developments taking shape in areas like Bukit Sri Persekutuan (Federal Hill), Jalan Gallagher and Bukit Tunku. Despite having the rules, the Kuala Lumpur City Hall (DBKL) has continued to totally disregard them by going ahead to approve ad-hoc developments in the city. Ratepayers and residents are extremely unhappy with the way planning decisions are being made and projects approved in the city. But what irked the city denizens most is the fact that despite being major taxpayers, they have absolutely no say in the way their city is being run. In the case of Federal Hill, the question puzzling the residents is how an area designated as “institutional” (police reserve) has suddenly become commercial overnight? What piqued the residents most is the fact that they have never been told by the local authorities concerned, in this case the DBKL, about what is happening there. Read more

Fabricator plans to buy more land, expand capacity

FABRICATOR and design engineering company APB Resources Bhd is looking to utilise between RM40 million and RM50 million cash in hand to buy more land and expand its capacity, chief operating officer Alex Tan Teng Khuan said yesterday."Preferably, we want to acquire land near our existing facilities in Shah Alam and Gebeng, Pahang, or the seafront so that we would not encounter logistics problems," he told reporters after APB Resources' annual general meeting in Kuala Lumpur.In its annual report, APB Resources said there is strong demand for process equipment in the oil and gas, energy, petrochemcial and oleo-chemical sectors. However, the group's operations continue to be constrained by production capacity. Read more

(New Straits Times 26-3-2008)

Klse Announcement: PARAMOUNT CORPORATION BERHAD (“PARAMOUNT” OR “THE COMPANY”)

PROPOSED ACQUISITION BY JANAHASIL SDN BHD (“JSB” OR “THE PURCHASER”), A WHOLLY-OWNED SUBSIDIARY OF KDU COLLEGE SDN BHD, WHICH IS, IN TURN, A 85% OWNED SUBSIDIARY OF THE COMPANY, OF A 10-ACRE FREEHOLD AGRICULTURAL LAND FORMING PART OF THE LAND HELD UNDER H.S. (D) 450559 NO. LOT PTD 153275 IN MUKIM PULAI, DAERAH JOHOR BAHRU, JOHOR DARUL TAKZIM FROM NUSAJAYA RISE SDN BHD AND UEM LAND SDN BHD AT A TOTAL CASH CONSIDERATION OF RM13,068,000.00
Contents:
JSB, a wholly-owned subsidiary of KDU College Sdn Bhd, which is, in turn, a 85% owned subsidiary of Paramount, has on even date entered into a Sale and Purchase Agreement (“SPA”) with Nusajaya Rise Sdn Bhd (Nusajaya Rise) and UEM Land Sdn Bhd (UEM Land), a wholly-owned subsidiary of UEM World Berhad, for the acquisition of a 10-acre freehold agricultural land forming part of the land held under H.S. (D) 450559 No. Lot PTD 153275 in Mukim Pulai, Daerah Johor Bahru, Johor Darul Takzim at a total cash consideration of RM13,068,000.00.

(KLSE 24-3-2008)

Paos disposes of land in Klang

PAOS Holdings Bhd's unit, Paos Industries Sdn Bhd, is disposing of a leasehold industrial land in Klang, Selangor, to KYS Enterprise Sdn Bhd for RM20.5 million. Proceeds from the disposal will be utilised towards working capital of the company, it said in a filing to Bursa Malaysia.

(New Straits Times 26-3-2008)

New Development: KDU Smart School, Nusajaya (Part II)

The school, which is targeted to open its doors on January 1, 2011, will cater to the current and future population of Nusajaya as well as the Johor population. It will have a slightly smaller capacity compared to its Sekolah Sri KDU in Kota Damansara, which has a full capacity of more than 2,500 students. Other established names under the KDU banner include KDU College in Damansara Utama, Sekolah Sri KDU in Kota Damansara, KDU Management Development Centre (KMDC) in Kuala Lumpur and Petaling Jaya, as well as KDU International Language Training School (KILTS) in Chongqing, China. According to Wan Abdullah, the school will be fronting the Coastal Highway connecting the Johor city to Nusajaya. The highway project is being spearheaded by South Johor Investment Corporation and is funded by the federal government to improve connectivity.East Ledang, a 365-acre development launched about four weeks ago, has had its first phase 50% taken up and expects to be 100% sold in a matter of three to four months, said Wan Abdullah. He reveals that its second phase, comprising terraced homes, semidees and bungalows will be launched in 4Q2008. UEM Land is the master developer of Nusajaya, a 24,000-acre regional city located in South Johor touted to be the largest fully-integrated urban development in South-East Asia. The group is currently undergoing a restructuring exercise which will be completed in September, said Wan Abdullah. “There have been no setbacks,” he said.

(The Sun 26-3-2008)

Sri KDU Smart School coming up in Nusajaya, johor

PETALING JAYA: Janahasil Sdn Bhd, a wholly-owned subsidiary of Paramount Corporation Bhd (Paramount) has signed a sale and purchase agreement with UEM Land Sdn Bhd (UEM Land) yesterday for the acquisition of 10 acres of land in Nusajaya, Johor. Sold for a total consideration of RM13.068 million, the land is located within UEM Land’s latest development known as East Ledang. Paramount, with a track record in the educational services sector under the KDU brand, will construct and operate the proposed Sekolah Sri KDU Smart School on the 10-acre plot. “Paramount will be the first private education operator in Nusajaya. The setting up of a private school of this stature is in line with our plans to develop an integrated community with world class infrastructure in Nusajaya. I am confident that the school, when completed and ready for enrolment in 2011, will be welcomed by young families looking for quality yet affordable education for their children,” said Wan Abdullah Wan Ibrahim, managing director of UEM Land. Datuk Teo Chiang Quan, group managing director and group CEO of Paramount, said another RM40 million would be allocated for the construction of the school’s first phase. Paramount also has an option to acquire another 15 acres of land from UEM Land for future expansion. According to Teo, the group has three years to exercise the option, which it is considering. “We are committed to doing something there; we are now doing a market study to find out why should we do another school there,” he added. According to Teo, the company is in the midst of planning the blueprint, which could take about three months after which relevant submissions will be done. “We aim to begin piling works seven months from now, perhaps in October. It will take one and half years to build the school,” he said.

(The Sun 26-3-2008)

Berjaya Land expands landbank

BERJAYA Land Bhd is acquiring a freehold vacant land in Johor from MOL.com Bhd for RM10.5 million. The deal is between its unit, Berjaya Land Development Bhd, and LKH Wires & Cable Sdn Bhd, which in turn is wholly-owned by MOL.com. The acquisition will increase the company's landbank amid the robust property market in the southern part of Peninsular Malaysia.

(New Straits Times 26-3-2008)

Paramount to build RM53m private school in Nusajaya

PROPERTY developer Paramount Corp Bhd will invest over RM53 million to develop a private school, the Sri KDU Smart School, in Nusajaya township, Johor. Main board-listed Paramount is buying a four-hectare piece of land in East Ledang, Nusajaya from UEM Land Sdn Bhd for RM13.1 million.Group managing director and chief executive officer Datuk Teo Chiang Quan said the company will be spending another RM40 million on the school building, school equipment and fixtures and fittings. "We have an option to acquire another six hectares of land from UEM Land for the extension of Sri KDU School. "We may go for an international school," he said at the signing of the sales and purchase agreement in Petaling Jaya yesterday.Also present were Paramount chairman Datuk Md Taib Abdul Hamid, Bandar Nusajaya Development Sdn Bhd director Tan Sri Mohd Sheriff Mohd Kassim and UEM Land Sdn Bhd managing director Wan Abdullah Wan Ibrahim.Sri KDU Smart School in Nusajaya is targeted to open its doors on January 1 2011. This will be the company's second smart school after Sri KDU Smart School in Kota Damansara, Selangor.Education contributes about a third to Paramount's revenue.Wan Abdullah said the school will be strategically located within UEM Land's new development, the 146ha East Ledang. Read more

(New Straits Times 26-3-2008)

UEM Land sees good response

PETALING JAYA: UEM Land Sdn Bhd expects the first phase of its 365-acre East Ledang high-end residential property development in south Johor to be sold out in four months. Managing director Wan Abdullah Wan Ibrahim said 50% of the first phase had been sold since the project was launched four weeks ago. “We had very good response from Singaporean and Johorean buyers. “Judging from the response, we expect to launch the second phase in the fourth quarter,” he told a press conference after Paramount Corp Bhd’s wholly owned subsidiary, Janahasil Sdn Bhd, inked a sale and purchase agreement with UEM Land for 10 acres in East Ledang. Wan Abdullah Wan Ibrahim (right) and Datuk Teo Chiang Quan at the press conferenceUnder the agreement, Paramount will purchase the land from UEM Land for RM13.07mil and construct and operate a private school called Sri KDU Smart School. The first phase of the East Ledang development on 40 acres comprises 140 terrace and semi-detached units with a total gross development value (GDV) of RM97mil. The project’s total GDV is about RM1.3bil. Read more

(The Star 26-3-2008)

KLSE Annoucement: KKB ENGINEERING BERHAD

PROPOSED ACQUISITION OF A PARCEL OF PROVISIONAL LEASEHOLD LAND OF APPROXIMATELY 27.6 HECTARES TOGETHER WITH BUILDINGS THEREON FROM CMS STEEL BERHAD, A SUBSIDIARY OF CAHYA MATA SARAWAK BERHAD FOR A TOTAL PURCHASE CONSIDERATION OF RM32,000,000 TO BE SATISFIED BY THE ISSUANCE OF 16,000,000 NEW ORDINARY SHARES OF RM1.00 EACH (“SHARES”) IN KKB AT AN ISSUE PRICE OF RM2.00 PER SHARE (“PROPOSED ACQUISITION”) On behalf of the Board of Directors of KKB, AmInvestment Bank Berhad (a member of AmInvestment Bank Group) is pleased to announce that the shareholders of the Company had passed the resolution pertaining to the Proposed Acquisition tabled at the Extraordinary General Meeting of the Company held today.This announcement is dated 24 March 2008.

(KLSE 24-3-2008)

Gurney project in Penang may be reviewed

PENANG: The state government will review the billion-ringgit Gurney Paragon project if there are “justifiable grounds”. Chief Minister Lim Guan Eng said the state government would get views from all quarters and welcomes any objection. “We will revisit the projects approved by the previous administration and if necessary, review them if these projects are adversely affecting people’s lives. Raising concerns: Artist impression of Gurney Paragon, a mixed integrated development comprising a shopping mall, high-end condominiums and a heritage building.“The concerns expressed to us by NGOs have been taken into account and we want certain procedures to be complied with, as should be the way the government works,” he said after a dialogue session with members of the Free Trade Zone Penang Companies’ Association yesterday. Lim was responding to calls by the Penang Heritage Trust (PHT) and Bar Council Legal Aid Centre to review and hold an open hearing on the project. Read more

(The Star 25-3-2008)

IJM: Builders to maintain profits

IJM Corp, Malaysia’s second-biggest builder, said the nation’s construction companies will be able to maintain profits for at least two years, dismissing concern that the government’s poll losses will slow spending on public works.Opposition victories in five states won’t hamper IJM’s earnings, managing director Krishnan Tan told reporters today at an investor conference in Kuala Lumpur organised by the Malaysian stock exchange.“It’s not peaking,” Tan said. “Awards may peak but jobs take two to three years to finish so one has to be clear that in terms of revenue spins, they’ll be on for two to three years.”Shares of Malaysian builders including IJM have plunged on fears Prime Minister Datuk Seri Abdullah Ahmad Badawi’s spending plan for roads, bridges and ports may be delayed after the ruling coalition lost its two-third parliamentary majority. The Kuala Lumpur Construction Index has dropped 9.4 per cent since March 8. “Most of the big construction companies already have substantial order books that will take them to two years of earnings,” Tan said. “If there’s a delay, it will be a delay in order-book enhancement. It shouldn’t affect the earnings in immediate terms.”Many of the country’s large construction contracts have yet to be awarded, “so I don’t see how it can peak,” he said, referring to new orders.

New Development: PJ's Section 13 (Part II)

Meanwhile, a consultant familiar with the area believes that the project will do well because of its location. Kim Realty principal Vincent Ng also told theSun that the whole Section 13 area has been zoned for commercial use.“Nowadays Jalan Kemajuan is very much considered a main thoroughfare and with its close proximity to the Federal and Sprint highways, it will be suitable for businesses that are looking for an office away from the city centre, which is getting too crowded,” said Ng.Ng also noted that bungalows along Jalan Kemajuan have been transformed into business premises over the past few years. “Businesses here front the main road and enjoy good exposure. Demand for land here is also on the rise and I believe people are willing to pay more than RM200 psf, depending on the size and location of the site,” he added.As land prices become more expensive in the city centre, Ng also feels that businesses are moving away from the city centre to suburban areas. Citing Damansara Heights as an example, he said rental rates for office space there is in the region of RM5.50 psf.“Rental rates in the Section 13 area are easily going between RM3.50 and RM4 psf, such as those in Jaya 33, which is fully occupied, and 3 2 Square’s tower block,” said Ng, adding that PJCC could command a rental rate of about RM4 psf if it were to be a nicely done up modern building.With the appreciating land cost at Section 13, Ng also felt that it would be a waste to offer industrial properties.

(The Sun 25-3-2008)

More Office space for PJ's Section 13

PETALING JAYA: The Brunsfield Group of Companies is targeting multinational companies who are on the lookout for a Petaling Jaya business address to take up space at its upcoming corporate office-cum-showroom building that will be coming up along Section 13’s Jalan Kemajuan.Its executive director of property development Chan Chee Keong told theSun its central location would ensure the success of its project, known as Petaling Jaya Commercial Complex (PJCC).“The commercial site is also near popular eateries like Restaurant Unique Seafood. Nearby existing and upcoming commercial developments point to the potential of this area as well,” said Chan.Having obtained its building plans and development order approvals recently, construction of the eight-storey project with a gross floor area of 378,172 sq ft and a net letable area of 289,997 sq ft on a freehold 3.48-acre site will start in June. Completion is in 36 months and the developer plans to lease the building enbloc.“We have started the pre-leasing exercise and have received a few enquiries.Such a building will be ideal for businesses that also need warehousing or storage facilities to accompany the office. Behind the main block of PJCC, there is space for such facilities,” he added. The Sime Darby Group and Brunsfield jointly own the site. PJCC will house showroom facilitieson the ground and first levels while the remaining upper floors will be for office use. According to Chan, rental rates are between RM4 and RM4.50 psf.

(The Sun 25-3-2008)

Aseana Prop sees RM2b from Mont' Kiara projects

ASEANA Properties Ltd, listed on London Stock Exchange and 20 per cent-owned by Ireka Corp Bhd, expects to rake in nearly RM2 billion in gross development value (GDV) from two high-end projects in Mont' Kiara.Aseana also plans to launch its first overseas project in Vietnam by year-end, subsidiary Ireka Development Management Sdn Bhd chief operating officer Lim Ech Chan said.The Vietnam venture will be a mixed development of serviced apartment, office and retail lots on a partnership with a local party, Lim said.Aseana should generate RM1.3 billion from the recently-launched Seni Mont' Kiara residential resort and RM380 million from Tiffani by i-Zen condominium project.Seni Mont' Kiara and Tiffani by i-Zen are among a few high-end residential and commercial developments under Aseana at Mont' Kiara."The average price of condominiums at Tiffani by i-Zen is RM630 per sq ft (psf). More than 90 per cent of the total 399 units available have been sold in the past one year," Lim said.Sixty per cent of the project has been completed and the handover of the residentials is expected in early 2009.Lim spoke to reporters after Aseana signed an agreement appointing South Korea's LG Electronics as air conditioners supplier for the Tiffani by i-Zen yesterday."The Seni Mont' Kiara will have an average price of RM750 psf," he added.The Seni Mont' Kiara project, Lim said, will comprise four blocks with a total 600 units of condominium. Read more

(New Straits Times 24-3-2008)

New Development: Laman Rimbunan, Kepong and Taman Hilltop, Sabah

Adnan disclosed in Kota Kinabalu, FHD will be launching a RM31 million high-end development within the exclusive Taman Hilltop. To be called Hilltop Perdana, it comprises 32 semi-dees and two linked bungalows with average built-up area of 4,000 sq ft. With a selling price of between RM869,060 to over RM1 milllion, the launch is scheduled for the 2Q2008.“Taman Hilltop is an established and exclusive area in Kota Kinabalu. We anticipate very good response there,” said Adnan, adding that within the same vicinity, all high-end developments have been fully taken up.FDH, through its subsidiary Rimbunan Melati Sdn Bhd, is currently developing Laman Rimbunan in Kepong, Kuala Lumpur. The mixed development consists of shop offices, 3-storey terraced houses, and medium and low-cost apartments. It is a JV between FDH and Cekap Corporation Bhd, where FDH holds a 55% stake.Spanning over a 100-acre leasehold tract fronting Jalan Kepong, Laman Rimbunan has a gross development value of approximately RM618 million, consisting of six phases. To date, 60% has been developed, comprising 50-units of 3-storey shop offices and 243 units of 3-storey terraced houses. On-going developments include 360 units of lowcost apartments, eight units of 2-storey shop offices, and 148 units of 3-storey Mawar houses.“Response has been very encouraging. Our 3-storey shop offices, 3-storey houses and low-cost apartments have been fully sold. The second phase of our 3-storey Mawar terraced houses have seen a takeup of 95%,” said Adnan.The Mawar houses have built-up of 3,033 sq ft and a lot size of 22 ft by 75 ft. Launched in November 2006, with pricing at RM471,800 onwards, it is expected to be ready by November this year.Launched earlier this month was its third phase, Matahari, comprising 193 units of 3-storey terraced houses with a lot size of 22ft by 75ft and built-ups from 3,025 sq ft for intermediate units and 3,689 sq ft for corner units. Intermediate units are going from RM547,800 while end lots are priced from RM843,800.Adnan said 50% was sold within a week of the launch. The GDV of Matahari is over RM119 million.According to the developer, a Matahari unit features a 700 sq ft junior master bedroom on the third floor. Laman Rimbunan also boasts the use of high quality materials. The Construction Industry Development Board (CIDB) Malaysia, graded the construction quality of the project's first phase (terraced houses) as above average, or 70%.“The property market in Kepong is vibrant," said Adnan, citing an example of some shop offices that were bought for RM1 million in August 2005 and were recently sold (subsale) for RM1.5 million."For our houses, the buyers are mainly owner-occupiers from Petaling Jaya, Kepong and Taman Desa,” he added. FHD is in the midst of securing more lands within Klang Valley, including one in Puchong. The developer will also be looking at collaborations with its sister company, UEM Land, and will continue to either acquire land or possible JVs with landowners.

(The Sun 24-3-2008)

New Development: Taman Desa,KL

KUALA LUMPUR: Faber Development Holdings Sdn Bhd (FDH), a member of Faber Group Bhd, is set to launch two new projects in Taman Desa here and an exclusive development in Kota Kinabalu, Sabah this year. Within its flagship development in Taman Desa, FDH will launch a joint-venture (JV) project with Dewan Bandaraya Kuala Lumpur (DBKL) comprising 40 units of semi-dees and six bungalows with an average built-up of 4,000 sq ft and 7,000 sq ft respectively.The proposed average selling price for the semidees is RM1.4 million, and RM2.85 million for the bungalows. The target launch for the JV is the 2Q2008, Faber group managing director Adnan Mohammad told theSun in an interview recently.“There is also a lakeside condominium in Taman Desa that we plan to launch by the 3Q2008,” he added. The lakeside development would consist of 176 units of luxury condominiums, with an average builtup of 1,279 sq ft. The proposed average selling price is RM400,000.According to the developer, the two developments to be launched in Taman Desa are adjacent to each other.

(The Sun 24-3-2008)