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KTM Land Charges To Be Settled In Court


Extract from The Edge (21/09/10)

SINGAPORE: Malaysia and Singapore have agreed to bring the outstanding issue on the development charges payable on Keretapi Tanah Melayu Berhad (KTMB) land in the city-state that will be jointly developed by both countries, to the international court for arbitration.

According to a joint statement issued after Malaysian Prime Minister Datuk Seri Najib Razak met his Singapore counterpart Lee Hsien Loong at the Istana here yesterday, both leaders agreed to settle the issue amicably through arbitration under the auspices of the Permanent Court of Arbitration.

The statement said both countries had different views relating to the charges payable on the three parcels of Points of Agreement (POA) land in Tanjong Pagar, Kranji and Woodlands. The three parcels of land are expected to be developed by a 60-40 joint-venture company, M-S Pte Ltd, to be set up between Malaysia’s Khazanah Nasional Berhad and Singapore’s Temasek Holdings Ltd.

Najib and Lee had further agreed to accept the arbitration award as final and binding.

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There's Green In Sustainability


Extract from New Straits Times (20/09/10)

THE last decade or so has seen many significant changes in our development landscape, particularly the high-end luxury residential segment which is where all new trends begin before filtering down the ranks.

We have seen plain housing estates morph into gated-and- guarded landscaped resort enclaves, simple apartment blocks evolving into resort condominiums complete with recreational facilities and the adoption of an array of high-tech gadgetry into houses to make living that much easier and efficient.

However, while the going is apparent, it is not without its fair share of challenges. Uncomfortably, it has stirred many developers and their contractors out of their comfort zones - the traditional ways they got things done - and required them to venture into unexplored territory where new designs, technologies and demands are the name of the game.

For those who take the leap without undertaking proper research, the results can be expensive to say the least, but for developers who have studied trends, listened to the desires of discerning buyers and see changes not as a passing fad but as progressive evolution, the rewards can be most satisfying.
Concrete blocks of terraces are finally making way for green enclaves.

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‘Provide Incentives For Developers To Go Green’


Extract from The Star (20/09/10)

MORE education and tax incentives are needed if the Government wants to convince all developers in the country to go green with their buildings.

International Real Estate Federation (FIABCI) Malaysia Penang branch chairman Daisy Ooi said the current tax incentives by the government were insufficient to encourage the developers and other industry players.

“More can be done to encourage everyone to construct or reside in property which comply with the Green Building Index (GBI), including having a hire purchase system for the installation of solar panels and LEDs (light emitting diode). Such items are presently expensive,” she said.

Ooi made the comment after a talk entitled ‘Green Building-Benefits and Tax incentives’ organized by FIABCI-Malaysia Penang branch on Saturday.

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Baneng To Acquire Related Parties’ Properties Worth RM29.22m


Extract from The Edge (21/09/10)

KUALA LUMPUR: BANENG HOLDINGS BHD will acquire RM29.22 million worth of existing related parties’ PROPERTIES as part of its restructuring exercise in a bid to strengthen its financial position.

In a filing to Bursa Malaysia on Sept 20, Baneng said the acquisition would be satisfied via the issuance of 29.22 million new shares at par of RM1 per share, as well as an issuance of 14.61 million warrants on the basis of one free warrant for every two consideration shares issued.

The Practice Note 1 (PN1) company said the consideration shares and warrants would only be issued to the vendors upon the completion of the proposed capital re-CONSTRUCTION and proposed share premium reduction. The properties to be injected are currently charged by related parties to the lenders of the Baneng group.

“The properties have been pledged as collateral to the lenders for banking facilities previously obtained by the Baneng group, and this has been the position since 2000,” the textile and apparel player said.

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Land Owner, Liquidator In Taman Li Project Told To Resolve Issues In 18 Months


Extract from Bernama (20/09/10)

KUALA LUMPUR -- The land owner and liquidator in the Taman Li low-cost flat project in Kepong which has been stalled for four years, have now been told to complete the project in 18 months.

Housing and Local Government Minister Datuk Chor Chee Heung said both parties were given six months to resolve all legal issues including getting a court order and new contractor, and given a year after that to fully complete the housing project.

He said if the two parties failed to reach an agreement within the six months given, the project would be taken over by the ministry to be saved.

"The cost of continuing the project which is 81 per cent completed until it is fully completed will be borne by the land owner, Kepong Development Sdn Bhd," he told reporters after visiting the stalled project, near Jalan Kuang Gunung.

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Malaysia-Singapore To Settle KTM Land Development Charges In Arbitration Court


Extract from Bernama (20/09/10)

SINGAPORE - Malaysia and Singapore have agreed to bring the outstanding issue on the development charges payable on Keretapi Tanah Melayu Berhad (KTMB) land in the city-state that will be jointly developed by both countries, to the international court for arbitration.

According to a joint statement issued after Malaysian Prime Minister Datuk Seri Najib Tun Razak met his Singapore counterpart Lee Hsien Loong at the Istana here Monday, both leaders agreed to settle the issue amicably through arbitration under the auspices of the Permanent Court of Arbitration.

The statement said both countries had different views relating to the charges payable on the three parcels of Points of Agreement (POA) land in Tanjong Pagar, Kranji and Woodlands.

The three parcels of land are expected to be developed by a 60-40 joint-venture company, M-S Pte Ltd, to be set up between Malaysia's Khazanah Nasional Berhad and Singapore's Temasek Holdings Ltd.

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UK Launching More Projects For M'sian And Asian Home-Buyers


Extract from The Star (20/09/10)

KUALA LUMPUR: Over the weekend of Sept 4 and 5, Malaysian home-buyers parted with £785,000 (RM3.7mil) for a one-bedroom 530 sq ft apartment and about £2mil (RM9.6mil) for a 1,500 sq ft three-room apartment in prime London.

The yet-to-build project in Kensington High Street, considered a prime London location opposite the Hilton chain, was also exhibited in Hong Kong and Singapore. The average price for the project is £1,400 per sq ft.

This project by Berkeley Homes is one of the most expensive to be brought into Kuala Lumpur. They are working with Malaysian agent Henry Butcher. Berkeley is London’s largest volume house builders.

In the next several months, other house builders like Land Securities Group Plc and Native Land will also be making their way into Kuala Lumpur. They will be working with Rahim & Co.
An earlier property offering, The Sugar House apartments, by Berkeley Homes. The yet-to-build Kensington High Street project by Berkeley Homes is one of the most expensive brought into Kuala Lumpur. They are working with Malaysian agent Henry Butcher. Berkeley is London’s largest volume house builders.

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Rapid Development In Kota Kinabalu Has Its Drawbacks


Extract from The Star (20/09/10)

KOTA KINABALU is arguably – one of the fastest growing cities in the country – given the number of commercial development taking place both within the central business district as well as the outskirts.

Buoyed by the rapid growth of its tourism industry as well as the palm oil boom, KK as it is popularly known, has seen tremendous changes to its skyline over the last 15 years.

New buildings including largest shopping mall on Borneo island, aptly called 1-Borneo, has dotted the coastal city, which is the gateway to Sabah the home of world renowned Sipadan Island, the iconic Mount Kinabalu and a host of eco tourism attractions.

And the somewhat controversial KK Waterfront development, sitting smack in the city center, would somehow add a new dimension to the city’s image.
Prime location: Aerial view of the city.

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Cooling Down The Market


Extract from The Star (18/09/10)

THE issue of whether an asset bubble is forming has become a hot topic in a number of countries in Asia these days.

Hong Kong, China and Singapore have sounded the alarm on skyrocketing property prices and are worried that a bubble could be building up and will lead to a market collapse if the north-bound prices are left unchecked.

When an asset bubble happens, prices for a broad spectrum of properties would have escalated beyond the affordability of many common folks. The price increases are not due to fundamental demand but are being artificially pushed up by speculators.

This is what is happening in the “hot” property markets in the region today, and their governments are scrambling to cool the market down with tightening measures such as stricter mortgage loan policies and higher deposits for purchasers.
Buyers who already own at least one property should have to dig into their own pockets for a higher downpayment for their subsequent purchase.

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New Supply Of Office Space In Three Years


Extract from The Star (18/09/10)

OFFICE rentals in Malaysia are expected to remain flat this year, as new supply of space over the next three years, primarily within the Klang Valley, will continue to make for a highly competitive leasing environment and further boost the city’s appeal as a business hub.

Khong & Jaafar Sdn Bhd managing director Elvin Fernandez says since the global financial crisis, average rental rates for Grade A offices within the Klang Valley had stabilized to between RM7 and RM8 psf.

“Nothing has changed for about a year. We’re currently in the post-crisis level where I don’t expect to see any upward movement in rents or values,” he tells StarBizWeek.

Fernandez says he expects rental rates of prime buildings to remain around RM7 psf, adding that landlords of buildings not located within prime areas may need to lower their rents (below RM7 psf) to attract tenants.

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