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Taking a cue from CapitaLand

Property News/ 2 July 2011 No comments

EARLY last year, UEM Land Holdings Bhd CEO and MD Datuk Wan Abdullah Wan Ibrahim brought up the high aspirations he has for the company and Iskandar Malaysia. He told StarBizWeek that he aspires to make UEM Land Holdings Bhd a global property development outfit the likes of Singapore’s CapitaLand.

“We hope to one day play a similar role in Khazanah – be what CapitaLand is to Temasek. We recognise that we are a relatively small player compared to the highly diversified property player like CapitaLand,” Wan Ibrahim said when talking about the plans he has for southern Johor economic region.

The time for Wan Ibrahim to make that aspiration a reality has come.

Early this week, Khazanah Nasional Bhd issued a joint statement with Singapore’s Temasek Holdings Pte Ltd to develop RM30bil worth of real-estate projects in Singapore and Iskandar Malaysia, which is located in the southern part of Johor. It will be the largest property joint venture between the investment arms of the two governments to date. The implications are many and far reaching.

Iskandar Malaysia is Khazanah’s largest property investment, while UEM Land is its property flag bearer. UEM Land is the master developer of 9,713ha Nusajaya township. Singapore-based CapitaLand Ltd, on the other hand, is South-East Asia’s largest property company in terms of market capitalisation, with sprawling assets and interest throughout the region. It is one of Temasek’s portfolio company in the real estate sector. The other portfolio company in the same sector is Mapletree Investments Pte Ltd.

“Iskandar Malaysia, by itself, is essentially Johor Baru, three ports and a domestic airport. Iskandar Malaysia plus Singapore is a different equation altogether. We are then have the additional Jurong and Port of Singapore Authority and Changi International Airport, which connects to over 200 destinations worldwide, with 5,000 arrivals and departures a week by 80 international airlines. In terms of banking and services, it is second to none in the South-East Asia region,” Wan Ibrahim says.

All that connectivity and infrastructure will be there for the state of Johor to leverage on, with sovereign backing from both sides.

UEM Land will not only be working with CapitaLand, it will also be working with Mapletree Investments Pte Ltd, another portfolio company in real estate development.

Two new joint-venture companies, M+S Pte Ltd and Pulau Indah Ventures Sdn Bhd, for joint-development projects in Singapore and Iskandar Malaysia respectively, have been established.

In an e-mailed statement, Wan Abdullah says Sunrise MS Pte Ltd, UEM Land’s indirect wholly-owned subsidiary has been appointed together with Mapletree Investments to oversee the development and marketing of four land parcels at Marina South, located at the heart of the financial and business cluster in Singapore’s Marina Bay area with a total permissible gross floor area (GFA) of 341,000 sq m.

In addition, UEM Land and CapitaLand have been appointed to oversee the marketing and development of two land parcels in Ophir-Rochor, located between the Kampong Glam Historic District and the Beach Road Conservation Area with a total permissible GFA of 160,020 sq m.

The development at these two sites totalling 501,020 sq m, will include office, residential, hotel and retail components with a total estimated gross development value of approximately S$11bil (RM27bil), subject to design and development plans.

“We have the expertise to undertake these two projects and are thus excited to be involved in the development of these two key sites in Singapore. We view this as an excellent opportunity to familiarise ourselves with the Singapore market and regulatory framework, in line with our aspiration to expand to regional markets.

“Our appointment also allows us to establish a close working relationship with two leading real estate companies from Singapore and I view the appointments as win-win for both parties for not only are we able to learn from each other but it also provide a platform for future collaborative opportunities both in Nusajaya and elsewhere.” says Wan Ibrahim.

It is an opportunity that other Malaysian developers would give a leg and an arm for. The last several years, Malaysian developers have been making forays into the city state. These include YTL Land Bhd, sdb Properties Sdn Bhd, the Sunway group, SP Setia and GLC Sime Darby group. With land prices so steep by comparison, one has to have deep pockets and a deep confidence that there will be demand for their offerings. In the case of UEM Land, the prize literally landed on them.

RAM Holdings group chief economist Dr Yeah Kim Leng views the cooperation very positively.

He says from the economic perspective, the synergies when Khazanah and Temasek pool their resources and capital to jointly undertake investments in the two countries will enhance the potential of their investments considerably. The positive spillover arising from the collaboration will be that a lot of things will be fast tracked. There is also a greater chance for success given their sovereign backing from the respective governments.

“It will go beyond real estate to attract other business ventures to enter Iskandar. The positive effect for UEM Land and Iskandar is greater because some of Singapore’s excess capacity can be relocated to the Malaysian side given our large land resources. UEM Land will be able to upscale themselves. This is one of the benefits of the JV,” says Yeah.

Despite the difference in size – Iskandar Malaysia is three times the size of Singapore – Yeah says there is much opportunities for UEM Land, Iskandar Malaysia. “The positive effects of this JV goes beyond property development, UEM Land. It will broaden and deepen Johor’s economic base.

“Regionally, there is greater integration from the perspective of the Johor-Singapore region and well as the greater Asean region. With China and India having their huge population to generate demand, this is an opportunity and a catalyst for Malaysia and Singapore – and Asean – to generate demand. Malaysia will be benefit more because our absorption capacity should be greater and some of the excess capacity from Singapore can be relocated to the Malaysian side,” he says.

The positive effects of the tie-up has already spill over to the private sector. A day after the Khazanah-Temasek announcement, Eastern & Oriental Bhd (E&O) issued a statement it will be partnering both state investment arms to develop an 84ha mixed development dubbed as a wellness township in Nusajaya, Johor. E&O’s unit Galaxy Prestige Sdn Bhd has set up a 50:50 joint-venture company, known as Nuri Merdu Sdn Bhd, with Pulau Indah Ventures Sdn Bhd, a 50:50 venture between Khazanah and Temasek.

E&O deputy managing director Eric Chan says in a e-mailed statement that the targeted GDV is estimated at approximately RM3bil and the actual figure will be dependant on the final masterplan. The infrastructure works have already started and targeted for completion by end of this year. Depending on market conditions, this project should last us between five and 8 years.

Says Chan: “The term ‘wellness’ is a broad concept that encompasess the well-being of the overall body, mind and spirit. Our consultants and architects are setting out to weave “wellness” elements into the masterplanned development with a view towards providing a quality lifestyle that enriches the well-being of residents.

Work on the master plan will be completed by the end of this year, the next stage is getting approval from the authorities, he says.

Prior to this, the lifestyle property developer signed a partnership agreeement with Japan’s Mitsui group, Mitsui Fudosan Co Ltd, to jointly develop residential properties in Malaysia and the region.

Chan says their venture into Iskandar with Pulau Indah Ventures Sdn Bhd has no connection with the Mitsui Group but an analyst says the recent developments will be synergistic for the Penang-based developer.

“They can sell their Iskandar, Penang and Kuala Lumpur projects,” says RHB Research Institute senior property analyst Loong Kok Wen.

She says up to this point, E & O is the only Malaysian developer working with CapitaLand in Khazanah-Temasek venture.



SOURCE: The Star

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Beautifying Penang mainland

Property News/ 1 July 2011 No comments

KEPALA BATAS: The public will be allowed to give their feedback on a pilot corporate social responsibility (CSR) landscaping programme initiated by the Seberang Prai Municipal Council (MPSP).

Council president Maimunah Mohd Sharif said while government agencies and corporate companies were invited to sponsor and maintain the programme, public views on its design and suitability would be sought before it is carried out.

“Our CSR landscaping programme, which has more than 20 projects under it, is similar to the one currently practised by the Penang Municipal Council.

“But, we wanted to include the people’s feedback in this public sector-private sector initiative to ensure that the programme is accepted by the people,” she said after chairing a full council meeting at Dewan Milenium here yesterday.

Maimunah said the council had identified 25 strategic locations on the mainland for the projects to help make Seberang Prai more vibrant and beautiful.

She said the public could convey their feedback on the projects’ proposals via municipal councillors or by sending emails to the council’s website at http://www.mpsp.gov.my/.

“The council might also hold exhibitions on the project designs in the different Seberang Prai districts for the public to view them and give their feedback.

“When I was the general manager for George Town World Heritage Incorporated, I sought feedback from several Carnavon Street residents before we conducted the beautification work,” she said.

At present, Maimunah said, private developer MMC-Gamuda JV Sdn Bhd under its CSR initiative, had proposed that a monumental park called Taman Tugu Kota Demokrasi Bagan be constructed in Jalan Permatang Pauh, near Taman Bagan, Butterworth.

She added that Bertam Properties Sdn Bhd had also agreed to fulfil its town planning requirement, by spending nearly RM1mil to create a Vision Park within its development project in Bertam, Kepala Batas.

“All applications to sponsor and maintain the CSR landscaping programme, will be vetted through a special committee in the council and not via department heads,” she said.

Earlier, Maimunah and the councillors observed a moment of silence as a mark of respect to former MPSP president Datuk Md Aris Ariffin who passed away on Wednesday.

He had served as council president from April 2004 to March 2007.



SOURCE: The Star

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View Court

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Property Project : View Court Apartment
Location : Farlim, Penang
Property Type : Apartment
Tenure : Leasehold
Indicative Price: RM400,000 onwards
Developer : Farlim Group

 

 

 

 

 

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Mah Sing to continue land acquisitions, JVs

Property News/ 30 June 2011 No comments

Property developer, Mah Sing Group Bhd, will continue to acquire prime land and enter into joint ventures in future, to further boost its expansion strategy.

Managing Director, Tan Sri Leong Hoy Kum said the group is keen on both privately held and government land, that could be developed, as it had the track record, experience, branding and financial capacity to unlock and enhance the value.

"This year should be another good year, particularly for developers, with a knack for creative product development and market strategies, among others.

"The mid to high-end residential segment in well established locations should continue to thrive together with the mass housing market, echoing the government's call to provide affordable housing," he told reporters after Mah Sing's Annual General Meeting here, today.

To date, the group has a total of 34 projects in Greater KL (Kuala Lumpur and Klang Valley), Penang and Johor Bharu, which yield a combined remaining gross development value (GDV) and unbilled sales of approximately RM14 billion to last for five to seven years.

Leong also expects the positive sentiment for the property market to continue, riding on the favorable employment conditions and stable economic growth.

"It is a good time to buy properties now, in view of the rising construction cost environment as buyers can lock in current property prices and enjoy borrowing rates, which are still very reasonable.

"Buyers should consider the developer’s track record, in terms of product delivery, quality, service and potential upside of the property," he said, adding, the group will maintain its focus on the local property market for its expansion plan.

For the first quarter ended March 31, 2011, Mah Sing reported a net profit and revenue of RM41.2 million and RM311.8 million respectively.

"We surpassed our shareholders' expectations last year and are working hard on achieving another good year in 2011 with more launches coming up in the second half," Leong said.

Macquarie Equities Research, the latest research firm to have initiated coverage of the group, has forecast Mah Sing' earnings to grow at a compound annual growth rate (CAGR) of 54 per cent over financial years 2011-2013.

In order to provide continuous value enhancement to shareholders, the group is aiming for a RM5 billion market capitalisation within five years, from its present RM2.2 billion. — BERNAMA


SOURCE: Business Times

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Developer sees positive financial contributions from projects

Property News/ 30 June 2011 No comments

PROPERTY developer Tambun Indah Land Berhad is anticipating at least 15% revenue growth this year from RM128mil recorded last year.

Its managing director Teh Kiak Seng said the company currently has six ongoing projects with total gross development value (GDV) of RM500mil.

“We will launch three more pro-jects at the end of the year, namely the BM Residence in Bukit Merta-jam, Capri Park in Butterworth and Kelisa Residence in Seberang Jaya with total GDV of RM110mil.

“We will have another project in Jelutong with three blocks of apartments and a block of office podium with GDV of RM200mil. Hopefully it can be launched by early next year,” he said after the company’s annual general meet- ing at Eastin Hotel in Penang last Friday.

The company’s ongoing projects include the Pearl Garden and Pearl Villas, Juru Heights, Carissa Park, Impian Residence, Dahlia Park and Tanjung Heights.

Teh said the company was also planning to develop an area called Pearl City consisting of over 445.15ha in Simpang Ampat.

“It will take a minimum of eight years to develop the place with GDV surpassing RM3bil.

“A business park will be sur-rounded by residential areas there and we are negotiating with hypermarkets, colleges and hospitals now. Hopefully, we can get one of them to come in.” Teh said.

He said more people from Penang island were favouring properties on the mainland.

“Last year we had about 10% purchasers from the island while this year, 35% of our purchasers are from the island.

“Properties over at the mainland are comparatively cheaper with a terrace house selling at about RM300,000,” he said.



SOURCE: The Star

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