Thinkproperty Blog

Extract from Business Times (03/02/2012)

KUALA LUMPUR: Sime Darby Property Bhd has won two awards for outstanding achievements in the property development sector in Malaysia and Southeast Asia.

It bagged the BCI Asia Awards 2011, the second consecutive year that it has won the honour. The award covers Malaysia, Hong Kong, Indonesia, the Philippines, Singapore, Thailand and Vietnam.

Sime Darby Property managing director Datuk Wahab Maskan said it was an honour to be one of the top 10 developers in Asia and to be acknowledged for its sustainable efforts in Malaysia.

"These awards reflect the appreciation of society and customers for our efforts to provide sustainable development for our stakeholders. We will continue to work even harder to be the preferred developer in the region," he said.

Extract from Business Times (30/01/2012)

KUALA LUMPUR: Trinity Corporation Bhd (TCB) has proposed additional collateral to the holders of the balance of its RM84.65 million Sukuk Al-Ijarah in the form of sales proceeds of 40 units of shop offices at Saujana Putra totalling RM40 million, arising from a proposed joint venture.

This is in addition to the existing securities in the form of the balance of three commercial buildings, namely Midpoint Shopping Complex, Menara Maxisegar Commercial Building and Pandan Kapital Shopping Complex.

The company issued the RM150 million sukuk in January 2005.

Extract from Business Times (30/01/2012)

HOTELS in Malaysia, particularly those in the Kuala Lumpur City Centre, are expected to fill more rooms this year, says the Malaysian Association of Hotels (MAH).

Hotels within the Kuala Lumpur city centre could finish the year at an average occupancy rate of 68 per cent, up from 65 per cent in 2011, said MAH vice-president Ivo Nekvapil.

"This year should be stronger than last year... I do not foresee a dramatic drop in the number of arrivals," Nekvapil told Business Times.

"Asia is very strong, China business is strong, too, and India (performance) is coming along great," he said.

Extract from Business Times (30/01/2012)

KUALA LUMPUR: Malaysian Rating Corporation Berhad (MARC) has affirmed its rating on DutaLand Berhad’s (DutaLand) outstanding RM20,649,024 Redeemable Unsecured Loan Stocks (RULS) at B with a stable outlook.

The rating action incorporates DutaLand’s improving operating performance, underpinned by a higher contribution from its plantation division that has offset weaker earnings from its property development activities, and its reliance on asset disposals to generate liquidity to meet its significant financial commitments.

DutaLand’s major property project, the 73-acre Kenny Heights Development, which is located in the Sri Hartamas vicinity in Kuala Lumpur and jointly undertaken with a related company, Olympia Industries Berhad, has seen slower-than-expected progress due partly to liquidity constraints.

As of date, only one project consisting of 49 units of 4-storey villas with a gross development value of 216.0 million ringgit was completed and handed over in April 2011.

Extract from Business Times (26/01/2012)

WITH a higher buyout offer in place and an assurance that its chief Tan Sri Liew Kee Sin will continue to helm the company, SP Setia Bhd's stock climbed to an almost six-month high yesterday.

State investor Permodalan Nasional Bhd (PNB) roped in Liew as a joint bidder and improved on its last September solo bid of RM3.90 a share for the property developer last Friday.

The joint bidders are now offering RM3.95 for each SP Setia share and 96 sen for each warrant, instead of 91 sen before.

The stock rose by 1.5 per cent to close at RM3.94 yesterday, off an intra-day high of RM3.97.

Extract from Business Times (20/01/2012)

THE local housing market is expected to gather steam in the first half of this year, after cautious consumers shunned buying at the end of last year due to global economic uncertainties.

Datuk Seri Michael K.C. Yam, president of the Real Estate and Housing Developers' Association Malaysia (Rehda), said people are more confident on the Malaysian economy now despite uncertainties in developed countries.

Yam said the Economic Transformation Programme, the Government Transformation Programme and projects like the mass rapid transit and River of Life have garnered confidence in the market.

"They will have spin offs, creating jobs and business opportunities," Yam said yesterday, at the Rehda property market update for the first half of the year.

Extract from Business Times (18/01/2012)

KUALA LUMPUR: Higher housing starts and building plan approvals last year signify confidence of developers and investors in the development activity, said National Property Information Centre (Napic) director Dr Zailan Mohd Isa.

Some 400,000 transactions valued more than RM100 million were undertaken during the first three quarters of last year.

Zailan said the second quarter of 2011 was the most active period during the period with more than 115,000 transactions recorded.

Housing starts, a key economic indicator, refer to the number of residential building construction projects begun during a particular period.

Extract from Business Times (18/01/2012)

KUALA LUMPUR: Construction Industry Development Board (CIDB) CIDB expects mega projects under the Economic Transformation Programme (ETP) to spur investments in mechanisation by industry players.

The ETP projects which will be rolled out this year include the Sungai Buloh-Kajang MRT line and development of the 1,200 ha Sungai Buloh land.

CIDB chief executive officer Datuk Seri Dr Judin Abdul Karim said the RM40 billion MRT project is expected to stimulate property development along the MRT line, with some developers leveraging on this development by building affordable homes in the suburbs near the MRT line.

"These projects will spur the mechanisation investment and transformation of local construction industry. In addition, this sector will also see an increase in green technology initiatives and products," he said.

Extract from Business Times (17/01/2012)

GEORGE TOWN: Penang is set to welcome investments totalling RM35 million this year from food and beverage operators into phase one of the Gurney Paragon development on Gurney Drive.

The project's developer, Hunza Properties Bhd (HPB), has already seen the entry of nine tenants into Phase 1B of its multi-billion ringgit waterfront development with capital investments in excess of RM10 million.

"We are working hard to continue bringing in established names which have yet to set up a presence in Penang to open their businesses in Gurney Paragon," HPB executive chairman Datuk Khor Teng Tong told Business Times yesterday.

Phase 1B of the project comprises some 100,000 sq ft of lettable space, and its developers are touting the entire Gurney Paragon project as the only one in the country for now which integrates a restored heritage building amidst modern residential, retail and commercial spaces.

Extract from Business Times (17/01/2012)

KOTA BARU: Construction and engineering firm Sara-Timur Sdn Bhd plans to invest up to RM600 million to develop an integrated commercial property project called Kota Baru Sentral@Tunjong in Kelantan.

Chairman emeritus professor Datuk Dr M. Zawawi Ismail said the project, which will feature shopping malls, luxury apartments and condominiums, a convention centre and office blocks, will be developed over three phases on a 16.5ha land in Tunjong.

"We expect to begin construction by June or July as land acquisition procedures and other preliminary engineering works are already completed," he told reporters here.

The project, Zawawi said, will be jointly developed with the Kelantan Menteri Besar Incorporated and Tunjong Development Corporation.

Extract from Business Times (16/01/2012)

JOHOR state investment company Johor Corp will spend up to RM40 million to upgrade all its hotel assets to cater to the expected increase in tourist arrivals, which is driven by the opening of several attractions in Iskandar Malaysia.

By end of this year, the RM350 million indoor theme park in Puteri Harbour, which is developed by government investment arm Khazanah Nasional Bhd, will open its doors.

In Nusajaya, Legoland Malaysia, which is being built at a cost of around RM750 million, is expected to open in September.

For the first nine months of last year, tourist arrivals through the state's entry points rose five per cent to 12.5 million.

Extract from Business Times (11/01/2012)

KUALA LUMPUR: En route to a listing, Pavilion Real Estate Investment Trust (REIT) plans to buy three shopping malls, namely the Fahrenheit88, the extension to Pavilion Kuala Lumpur Mall (Pavilion Mall) and a soon-to-be-developed mall in USJ Subang Jaya, within the next two years.

Pavilion REIT Management Sdn Bhd chief executive officer Philip Ho said this is part of Pavilion's growth strategy as outlined in its prospectus.

"We believe our listing will serve to enhance the growth of our retail and corporate property business. We hope to provide a platform for investors to invest in a REIT that provides a stable distribution income, capital appreciation as well as opportunities to benefit from its future acquisitions of yield-enhancing assets," he said at the launch of Pavilion REIT's prospectus here yesterday.

Speaking to reporters later, Ho said Pavilion plans to acquire Fahrenheit88 by 2013, Pavilion Mall's extension by 2014 and a retail mall in USJ Subang Jaya by 2015.

Extract from Business Times (10/01/12)

KUALA LUMPUR: Trinity Group Sdn Bhd, a property developer, plans to launch at least four new projects, with a gross development value (GDV) of RM640 million in Kuala Lumpur and Selangor, over the next two years.

Trinity Group founder and managing director Datuk Neoh Soo Keat said the four potential new projects will be in Serdang, USJ (Subang Jaya), Ampang and Taman Melawati.

"We have adequate landbanks for these projects and are acquiring more land. We are now awaiting for approvals from the relevant authorities.

"We expect to launch the first of these four in Serdang in March this year. It will be a mixed commercial and residential development," he told reporters after the official handing over of keys to buyers of Trinity Group's the Zest serviced apartments in Bandar Kinrara near here yesterday.

Extract from Business Times (10/01/12)

SINGAPORE: InterContinental Hotels Group (IHG) has signed an agreement with RB Capital to manage Kuala Lumpur's first Holiday Inn Express, to be built along Bukit Bintang by Amsterling Hotels Sdn Bhd, a subsidiary of RB Capital.

The site is near RB Capital's 26-storey tower housing HSBC's Malaysian headquarters.

The 200-room Holiday Inn Express Bukit Bintang is slated to open in 2015.

Holiday Inn Express is a well-established brand that offers fuss-free comfort, convenience and value in great locations, said Jan Smits, IHG's chief executive for Asia, Middle East and Africa (AMEA).

Extract from Bernama (05/01/12)

UEM Land Holdings Bhd, a Malaysian developer, rose the most in a week in Kuala Lumpur trading after RHB Research Institute upgraded the country's property industry to neutral.

 

The stock climbed 1.4 percent to RM2.26 at 9:13 a.m. local time, set for its biggest increase since Dec. 27.

UEM Land was among RHB's top picks, according to a report by analyst Loong Kok Wen today.

Johor Land Bhd is talking to Malaysian and foreign investors to expedite development of its RM2 billion integrated resort township project in Tanjung Leman, south off Mersing in Johor.

According to a source, the 142ha township project has attracted interest among investors due to its product offering and location.

The project is located within the Eastern Coast Economic Region, which is among the comprehensive development blueprints put in place by the government.

Tanjung Leman, meanwhile, is one of many beaches along Johor's east coast, besides Desaru, Tanjung Balau and Tanjung Sedili.

KUALA LUMPUR: The Family Entertainment Centre (FEC), a four-storey indoor theme park which will be home to the first Hello Kitty Town in southern Asia, is 80 per cent complete.

Themed Attractions and Resorts Sdn Bhd managing director and chief executive Tunku Ahmad Burhanuddin said work on the FEC is progressing well and it is slated for opening by the end of next year.

“At present, progress for the FEC is well under way and has reached 80 per cent completion. We are looking forward to its opening end of 2012,� Tunku Ahmad said in a statement.

According to the statement, Sanrio Co Ltd top executives recently visited Puteri Harbour, Johor, to view the progress of the FEC, which will house Sanrio’s first Hello Kitty Town in southern Asia.

KUALA LUMPUR: InterContinental Hotels Group (IHG) swept all 22 awards in 16 categories at the Hospitality Asia Platinum Awards (HAPA) 2011-2013 Regional Series last month.

The IHG winners included representatives from InterContinental, Holiday Inn, and Crowne Plaza in Singapore, Malaysia, Indonesia and Vietnam.

The HAPA Awards 2011-2013 Regional Series, which runs every two years, was held in Singapore on November 17-18.

“We are in the business of delivering great service and unique guest experiences, and these awards tell us that our commitment has been recognised.

KUALA LUMPUR: UDA Holdings Bhd will be reviewing the proposal by Ministry of Finance (MoF) to divide the former Pudu Jail site, better known as Bukit Bintang City Centre (BBCC) into three plots, to ensure the value of the land can be maximised.

UDA chairman Datuk Nur Jaz-lan Mohamed said the study is being conducted by a special committee chaired by a board member before it is presented to MoF for consideration.

He said the development of the 20 acres has to be made carefully and without haste because UDA's survival and almost 1,400 of its employees depends on its successful implementation.

"For UDA, this development marks the continuation of the company's survival for the future, and the board of directors has agreed that any form of development needs to prioritise UDA's interest first," Nur Jazlan said in a statement last Wednesday.