THE Penang Development Corporation (PDC) Properties has successfully completed the construction of 715 low to low medium-cost housing units in Sungai Dua.

PDC Properties chief executive officer Phan Gaik Cher said the development cost of the project was about RM80mil.

“Construction started in early 2009 with a targeted completion date in July this year.

“We managed to finish the project four months ahead of schedule,” Phan declared, adding that the required Certificate of Fitness (CF) was ob-tained on Jan 30 this year.

PDC Properties is a subsidiary of the state’s development arm Penang Development Corpo-ration.

The project called Halaman Kenanga stands on a 1.74ha plot and has 510 low medium-cost units and 204 low-cost units in two 22-storey blocks.

The 700sq ft low medium-cost units cost RM72,500 while the 680sq ft low-cost units cost RM42,000.

Chief Minister Lim Guan Eng, who was present yesterday to hand over keys to some of the owners, said that the project was proof that the state put the interests of the people first.

“There has been criticism from certain quarters that the state has not provided a single low-cost unit.

“Since taking over the state government, the Pakatan administration has in fact approved 11,596 low-cost and low medium-cost units,” he said after handing over mock keys to 22 Halaman residents.

Lim hopes that the affordable housing issue would finally be put to rest.

“The state could have used this land for profit, but instead we decided to use it in the commu-nity’s interests,” he added.

The Penang Government came under fire last year after the Auditor-General’s Report 2010 stated that the state had not built a single low-cost house from 2008 to 2010.

Among those who received their keys was self- employed Ahmad Yatim, 70.

“This is the first home I have ever owned,” the grandfather of 10 said, adding that he would move into the three-bedroom flat with three family members.

Source: The Star

THE Penang Regional Develop-ment Authority (Perda) will build 238 low-cost units for the poor at Kampung Tok Subuh in Bukit Minyak, Bukit Mertajam.

Construction will start soon and the project is expected to be completed in two years.

Perda chairman Datuk Azhar Ibrahim, who is also Penang Umno secretary, said the project costing RM15mil would benefit the poor in the area.

“A local consultant has been appointed to oversee the project unlike the state which appointed a Singaporean consultant company to handle its low-cost project in Batu Kawan.”

He said this after presenting keys to 13 house owners who were former occupants of the land at Kampung Tok Subuh on Friday.

The houses built by Syarikat Perumahan Negara Berhad (SPNB) cost RM70,000 each.

The Federal Government has subsidised RM44,000 and the re- maining RM26,000 will be paid by the new owners over the next 25 years.

Also present at the handover were SPNB acting senior general manager Datuk Ahmad Azizi Ali and Bukit Mertajam Umno division chief Senator Datuk Musa Sheikh Fadzir.

Azhar said the project was to show that the Government was concerned about the plight of the poor and it had plans to uplift the lifestyle of poor and the lower-income groups.

Source: The Star

CAPITALAND Commercial (M) Sdn Bhd, an indirect wholly-owned subsidiary of Singapore’s CapitaLand Ltd, is actively looking for potential land in prime locations in the Klang Valley and other key cities in Malaysia for more property developments.

Its vice-president of project and asset management Lim Chee Ming says the company’s long term plan is to focus on residential and commercial projects.

“We also intend to set up new funds to take part in more developments. We are monitoring market conditions very closely as the timing must be right,” he shares with StarBizWeek.

Lim says the Malaysia Commercial Development Fund (MCDF) is a successful fund which has distributed double-digit returns to its investors to-date. It is on track to return the balance of the investments by 2013.

MCDF was established in 2007 by CapitaLand and Maybank to invest in real estate development projects in the Klang Valley. The private real estate fund closed at US$270mil.

Some of the completed projects by the fund include One Mont Kiara and KL Sentral Lot J, in which MCDF has already divested.

Lim says moving forward, the company intends to set up similar funds for its new developments.

“The Malaysian government’s plan to attract 100 multinational companies to establish their global or regional headquarters in the Klang Valley has the potential to upkeep a buoyant outlook for the office sector.

“We are also positive with the outlook of the residential sector. There is still high demand for new residential properties as the take up rates of recently launched residential developments are encouraging,” he says.

The company’s most recent project in Kuala Lumpur is Sastra U-Thant, a luxury residential project in Taman U-Thant, a prestigious diplomatic enclave off the Kuala Lumpur City Centre. The project is a joint venture between CapitaLand and Juta Asia Corporation Sdn Bhd.

As of last month, the foundation and basement works for the project have been completed, and Sastra U-Thant is slated for completion next year.

CapitaLand Commercial Malaysia head of marketing Jaselyn Wan says the project has received strong support from high net-worth Singaporean buyers who are keen to invest in prime properties in Malaysia.

Wan says the sentiment for the local residential market is still positive with encouraging take up for new residential projects.

“There is increasing interest from high net-worth Singaporeans to invest in prime Malaysian properties due to the attractive rental returns and affordability,” she notes.

Lim says CapitaLand Commercial’s portfolio of investment property is through Quill Capita Trust (QCT), a real estate investment trust listed on Bursa Malaysia.

CapitaLand Commercial’s investment in QCT is held through CapitaCommercial Trust which has a 30% stake in QCT.

According to Lim, QCT’s investment objective is to acquire and invest in office and commercial properties. “We are always actively exploring acquisitions for QCT,” he says.

In the retail sector, CapitaMalls Asia chief executive officer Lim Beng Chee says the company continues to look for opportunities to grow its presence in the local market.

“We are open to acquiring or investing in good mall assets which will benefit our stakeholders and which are in line with our investment criteria. The focus is on growing urban centres in Malaysia.”

CapitaMalls Asia is well-positioned for growth in the country’s retail sector, given that its five malls are located in the major urban centres of Penang, Kuala Lumpur, Selangor and Kuantan.

The malls are Gurney Plaza and Queensbay Mall in Penang; Sungei Wang Plaza in Kuala Lumpur; The Mines in Selangor; and East Coast Mall in Kuantan.

CapitaLand’s serviced residence unit, The Ascott Ltd, also sees strong growth potential for its serviced residence operation in Malaysia.

The Ascott Ltd regional general manager for Singapore and Malaysia, Tan Boon Khai says the company is positive about the serviced apartment outlook in Malaysia and would continue to look for opportunities to expand its footprint and presence.

“The country’s resilient economy and attractiveness as a destination for foreign direct investments (FDIs) augurs well for the sector.

“As FDIs increase, we expect strong demand for serviced residences and we are constantly seeking opportunities to strengthen our leadership position in Malaysia,” Tan adds.

As at December 31, 2011, Ascott’s Malaysia portfolio is valued at S$101mil, The assets include Somerset Ampang Kuala Lumpur and Somerset Seri Bukit Ceylon Kuala Lumpur which are 100% owned by the company, and Ascott Kuala Lumpur (which it has a 50% stake).

Last year, Ascott expanded to Cyberjaya, Petaling Jaya and Iskandar Nusajaya in Johor, which consolidated its leadership position as the largest international serviced residence owner and operator in Malaysia.

Tan says the company has more than 1,000 units in the country which are scheduled to open over the next five years.

“This year, we will be opening our first Citadines serviced residences in the country, Citadines Uplands in Kuching. This will be followed by Ascott Sentral Kuala Lumpur and Somerset Puteri Harbour Iskandar in 2013.

“2014 will see us opening Citadines D’Pulze Cyberjaya and in 2016, we will have our new Somerset property in Damansara in Petaling Jaya. In total, this will bring our Malaysian portfolio to about 1,600 units,” Tan says.

SOURCE: The Star

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