PETALING JAYA: After posting a stellar set of results, UEM Land Holdings Bhd is on the prowl again to expand its land-bank in other locations and diversify geographically in Malaysia and also regionally.

“Our business development division has been very busy with regional expansion, and we like what we see in Sabah and Sarawak,” said managing director and chief executive officer Datuk Wan Abdullah Wan Ibrahim.

“Some developers may have created their footprint in these locations, but it is never too late to venture into these states, as we can learn from past experiences,” he said.

He said the company was in advanced negotiations with some land owners and expected to get something on board this year.

Currently, the company owns about 3,640ha with a gross development value (GDV) of RM77bil, which mainly are located in the Nusajaya area in Johor.

He also said if UEM were to venture into a new location, it would do the projects on a joint-venture basis.

“We still have some land-bank in the Klang Valley out of the acquisition of Sunrise Bhd, and we have some 45 acres of land in Mont Kiara,” Abdullah said.

He said there were still a lot of projects in the pipeline, totalling more than RM30bil.

“We are in discussions with other government agencies to acquire strategic parcels around Penang and Kuala Lumpur, and we hope to be able to land some of these deals this year,” he said.

On the prospects for the Johor property industry, he said although there was a softening of prices in the industry as a whole, Johor was a different story altogether.

“Johor can leverage on its proximity to Singapore and also new product offerings that cater to not only a section of the market but also to the region and the world at large,” Abdullah said.

Meanwhile, the company just released its first full-year consolidated results after the merger between UEM and Sunrise, which showed a growth of 55% in net profit to RM301.7mil from RM194.5mil in 2010. The company has also set a net profit growth target of 40% for 2012, on the back of a 50% rise in revenue.

UEM still has unbilled sales totalling RM1.85bil as at Dec 31, 2011, and is aiming to achieve RM3bil in sales for 2012. Launches worth RM4.5bil in GDV are planned for this year.

SOURCE: The Star

PETALING JAYA: Dijaya Corp Bhd’s majority shareholder, Danny Tan Chee Sing is injecting his personal assets into flagship property company, Dijaya, to enlarge the size of the company and unlock further value for shareholders, said sources close to the company.

These personal assets are currently privately held by Tan and consists of land-banks nationwide as well as investment properties.

While the size of the assets are not known, sources said the injection of the assets would result in Dijaya’s market capitalisation increasing from RM766.4mil to about RM1bil.

Dijaya shares were suspended at about 4.30pm yesterday with its last traded price of RM1.67. The suspension will be from 9am on March 5 to 5pm on March 6.

In an announcement to Bursa, Dijaya said that the company intended to propose a corporate exercise involving a very substantial transaction.

Sources said: “The intention is to create a bigger company and grow more aggressively, moving forward. The investment properties will also provide some form of recurring income for the company.”

The acquisition was likely to be satisfied by a combination of cash and a corporate exercise, the sources added.

Tan is the single largest shareholder of Dijaya, with a 30.51% stake in the company. The other substantial shareholders are Golden Diversity Sdn Bhd (18.27%) and Impeccable Ace Sdn Bhd (17.87%).

For the fourth quarter to Dec 31, 2011, Dijaya’s net profit rose 12.8% to RM39.02mil on a 53.24% increase in revenue to RM156.2mil. For the full year, net profit increased 50.43% to RM65.07mil on a 27.87% increase in revenue to RM373.72mil. As of the period, the company had cash of RM116.36mil, compared with RM232.74mil previously.

Last month, Dijaya’s managing director Datuk Tong Kien Onn told StarBiz that the company planned to build up its market presence in Johor and Penang, and expected to see a bigger contribution from these two growth markets.

Selangor is still its biggest contributor, accounting for more than 70% of sales and bottomline. This year, Dijaya plans to launch RM1.1bil worth of projects, compared with about RM700mil last year.

In Johor, Dijaya has two joint ventures with Iskandar Waterfront Sdn Bhd for projects in Danga Bay.

Tropicana Danga Bay is a 60:40 joint venture between Dijaya and its partner, with an expected gross development value (GDV) of RM3.8bil and an estimated period of eight to 10 years to complete.

Dijaya also has 50:50 joint venture with Iskandar Waterfront to undertake the 91ha Tropicana Danga Cove. This development has a GDV of RM2.8bil and is expected to be completed in 10 to 12 years.

In Penang, Dijaya has a 55:45 joint venture with Ivory Properties Group Bhd to buy and develop a 41.02ha in Bayan Mutiara. The joint-venture company, Tropicana Ivory Sdn Bhd will undertake a mixed residential and commercial property project with a GDV of RM9.8bil over the next eight to 12 years. — By Tee Lin Say

SOURCE: The Star

Environmentalists  and green champions must be applauding the lower number of cars that have been sold since Bank Negara’s latest directive to banks to disburse the quantum of household loan based on a borrower’s net income instead of gross income.

Since Jan 1, banks have to use net income instead of gross income to calculate the debt service ratio for loans. The guideline covers housing, personal and car loans, credit cards, receivables and loans for the purchase of securities.

The effectiveness of the ruling can be seen in the lower number of vehicles sold in January. At 40,948 units, it was 14% lower than in December 2011 and a 25% drop against January last year.

This goes to show that many of those who previously managed to sign up for new car loans and other types of consumer loans could be grossly over-geared and may have inadequate disposable household income. What’s left of one’s income after deducting payment for loan servicing, income tax and contribution to the Employees Provident Fund, differs from individual to individual, depending on one’s financial commitment.

Don’t forget that for many sole breadwinners, they also have to shoulder a host of other payments – spouse and children’s household expenses and education fees, pocket money to ageing parents and dependents, and other miscellaneous expenses. The list goes on.

The central bank has good reasons to rein in the rising ratio of household loan to income as the benefits are manifold.

The measure should be applauded as I believe the right policy is the first step to steer people in the right direction of living within their means rather than allowing them to become dependent on debts to maintain their lifestyle.

With the prevailing uncertainties in the world today, it is a good time for families to consolidate their household income and expenses account. And along the way they can point out to their young ones about the virtues of being contented with what they have.

Instead of rushing to place booking for a new car whenever a new model comes out, it is nothing wrong to drive around in an older model as long as the vehicle is road worthy.

Don’t forget that our young ones are always watching us, the adults, as their role model. In many ways, they are a mirror of what we are, so it is important for us to watch our thoughts, words and deeds. Remember the saying, “What goes around, comes around.”

As a mother to two teenage girls, I know – even our facial and body language would be scrutinised for “signs” of approval or disapproval. A friend had once vouched that her teenage girl (girls are said to be more mentally discerning) even use telepathy to read her mind – so beware of what goes on in our head when in their presence.

Come to think of it, since less people qualify for loans to buy cars now, it may be an opportune time to revert to cycling or better still, walking.

Cycling and walking are certainly more sustainable modes of moving around, more environmentally friendly and healthier options.

When there are less vehicles on the roads and facilities are provided for pedestrians and cyclists, such as covered walkways and bicycle lanes on roads and highways, the walking and cycling vogue is bound to take off.

Less petrol would be consumed and there would be less pollution from vehicular emissions.

As for the property sector, the net income formula and maximum loan-to-value ratio of 70% for a third and subsequent housing loan taken by a borrower would avert unhealthy speculative activities and rein in sharp jump in property prices.

The lower loan quantum would inadvertently increase demand for affordable housing products and developers would have to redesign their products to cater to this market.

The same maxim applies: If the house is still functional, stay put first. Moving into a newer and trendier place, although is a status symbol, incurs cost and may involve higher loan commitment.

Nevertheless, those with the means and surplus cash to spare can opt to invest in multiple properties as they still offer one of the best hedge against inflation.

SOURCE: The Star

The trend of developing residential properties priced between RM200,000 and RM400,000 is picking up in Penang, a state where property prices are second highest in the country after Kuala Lumpur.

Tambun Indah Land Bhd, PLB Engineering Bhd, Ideal Property Development Sdn Bhd, and Belleview Group are some of the Penang-based developers with plans to launch moderately priced projects on the island.

With the exception of Belleview, Tambun Indah, PLB, and Ideal Property are taking advantage of the plot ratio guidelines introduced in 2010 which allowed developers to build 87 units per acre, with a total built-up area of 122,000 sq ft per acre and priced at between RM200,000 and RM300,000.

Under the revised guidelines, developers have to allocate 5% of the total units in a development scheme to be priced at RM200,000, 10% to be priced at RM300,000, and 5% not exceeding RM500,000.

Tambun Indah’s Straits Garden in Jelutong, PLB’s Sungai Nibong Residences and Ideal Property’s Valencia Park are the new projects using the revised guidelines.

The layout plans of the projects have been approved and the company is now waiting for the go-ahead for the building-plans.

Previously, the plot ratio guideline for high-rise was 60 units per acre or 42,000 sq ft per acre or 30 units of 1,400 sq ft apartments.

The revised plot ratio guidelines are applicable in areas where it is allowed to develop 30 units per acre and above and in areas designated as commercial/tourism areas under MPPP’s structural planning and development control plan.

They are not applicable for prime residential areas such as Jalan Tunku Abdul Rahman (popularly known as Ayer Rajah Road), Jesselton area, existing established housing zones and general housing areas, George Town Heritage Site (which includes the buffer zone), certain areas in Tanjung Bungah and Tanjung Tokong.

Real Estate and Housing Developers’ Association (REHDA, Penang) chairman Datuk Jerry Chan said the new plot ratio guidelines for the island was a win-win situation for both the developers and the state government.

“The guidelines make the developers supply affordably priced properties and in return the developers get to better utilise the land for development,” Chan said.

Tambun Indah is proposing to develop a RM180mil high-rise residential project called Straits Garden in Jelutong on a 1.69ha site, the north-east district of the island, with 15% of the total units priced between RM200,000 and RM300,000.

Tambun Indah managing director Teh Kiak Seng said the project’s layout plan had been approved and was now waiting for the building-plan approval from the relevant authorities.

“The project located in the heart of the island and would feature modern apartments, office suites and shop lots to meet the demand for commercial and lifestyle properties in the central business district.

“We anticipate to commence development in the fourth quarter of the year. Targeted completion is by the fourth quarter of 2014,” he added.

In Sungai Nibong, which is close to the Penang International Airport, PLB plans to launch the Sungai Nibong Residences, comprising 98 units of medium-cost apartments on an over 0.4ha site.

PLB executive chairman Datuk Ong Choo Hoon said the project has a gross development value (GDV) of RM70mil and was expected to be launched in the third quarter this year.

Some 15% of the total units would be priced between RM200,000 and RM300,000 in accordance with the conditions of the revised plot ratio guidelines.

The lay-out plan of the project had been approved and is now waiting approval for it’s building plan.

Ideal Property also plans to launch 788 apartment units called Valencia Park on a 9.1-acre site in Relau, south-west district of the island in September.

Ideal Property managing director Datuk Alex Ooi said the project, which had a GDV of RM330mil, comprised apartments with built-up areas of 1,000 sq ft and 1,200 sq ft.

In the past two years, Ideal Property had developed and sold over 500 units of apartments priced between RM300,000 and RM400,000 in the south-west district.

Belleview’s RM100mil Autumn Tower project, comprising 220 condominiums at All Seasons Park in Bandar Baru Air Itam, does not come under the new plot ratio guidelines.

“The project is scheduled for launch in May 2012.The pricing for the units ranges between RM350,000 and RM400,000”, said Belleview managing director Datuk Sonny Ho.

Meanwhile Raine & Horne Malaysia director Michael Geh said the sub-sale transactions of high-rise properties priced between RM300,000 and RM400,000 were very active in the south-west district of the island in Relau, Bukit Jambul, Bayan Baru, Bayan Lepas, and Sungai Ara.

“Properties in these locations have been steadily rising at about 10% per annum,” Geh said, adding that there was strong take up for newly-launched properties in the first two months of 2012.

“We observed that the demand came from newly-weds, families that want to upgrade their lifestyle, and retired couples looking for smaller high-rise properties in prime locations,” he said.

In Seberang Prai, Asas Dunia Bhd is undertaking some 1,357 units of landed properties this year with a GDV of RM226.7mil in Central and South Seberang Prai.

Group managing director Chan said the price ranged between RM120,000 and RM580,000, depending on the type of property and the location.

The properties comprised largely single-storey terraced, single-storey semi-detached, and single-storey bungalow houses.

Over the past two years, the prices of residential properties have increased from 10% to 15% per annum on the island, making properties in the RM200,000 to RM400,000 price range increasingly rare.

Prime Minister Datuk Seri Najib Tun Razak had last July launched the first phase of 1Malaysia Peoples’ Housing (PR1MA) programme, under which residential properties priced between RM150,000 and RM300,000 would be developed.

PR1MA is specifically for first time house buyers and moderate-income Malaysians earning not more than RM6,000 monthly regardless whether they work with the government, the private sector, or self-employed.

Some 42,000 houses under PR1MA have been identified for 20 sites in the Klang Valley, Rawang and Seremban, and companies like Sime Darby Bhd, SP Setia Bhd and Putrajaya Corp have been invited to participate.

In the last budget announcement, the federal government also raised the ceiling price for first home scheme buyers to RM400,000 from RM220,000 with 100% loan financing and stamp duty exemption to promote home ownership among the middle-income groups.

As Sime Darby owns a large bulk of land bank in Penang via Eastern & Oriental Bhd, the state could be a site for moderately priced housing projects under PR1MA.

Eastern & Oriental Bhd is reclaiming 740 acres for the second phase of the Seri Tanjung Pinang project in Tanjung Tokong to develop two islands for mixed development projects, which will have a GDV of RM12bil.

SOURCE: The Star

Sunway Wellesley is Sunway’s latest integrated development of residential and commercial properties here in Bukit Mertajam, Penang.

At Sunway Wellesley, the residents here will enjoy enhanced modern living in a place familiar to them. The landscape will be changed to meet the move of urban trends, where modern and contemporary architecture blend right in with the best of nature’s offering.

Shop Offices

• Land Area : 1,300 – 1,460 sq.ft.
• Built Up : 3,815 – 4,270 sq.ft.
• Total Units : 29
• Indicative Price : RM 1,000,000 onwards

Property Project : Sunway Wellesley
Location : Bukit Mertajam, Penang
Property Type : Mixed Development
Land Tenure : Freehold
Developer : Sunway City