Sunway buys PJ land for RM286mil

Sited next to Western Digital in the Sungai Way Free Trade Zone, the land is within the vicinity of the beautiful Kelab Golf Negara Subang.

PETALING JAYA: Conglomerate Sunway Bhd is boosting its land bank close to its flagship development Sunway township by buying 17 acres worth RM286mil.

The parcel, which is situated next to Western Digital in the Sungei Way Free Trade Zone, works out to about RM386 per square foot.

It is believed to have belonged to a politician who used to be active in the 1980s in Selangor and his partner.

With the acquisition, the company plans to roll out a mixed project that entails service apartments and retail shops, with a total gross development value of RM1.8bil.

Sunway said the purchase from a private company, Kelana Resort Sdn Bhd, was in line with its target to buy land ready for immediate launch. It expects the first launch of the project to be in the financial year ending Dec 31, 2016, with a development period of five years.

Sunway said the residential units would be designed to capture the view of the 18-hole golf course of Kelab Golf Negara Subang and a 15-acre water retention pond.

It planned to improve the pond’s landscape by working with local authorities.

“In addition, the land is located about 600m from the Setia Jaya KTM and Bus Rapid Transit Sunway Line stations which provide residents access to public transportation networks to Kuala Lumpur City Centre, Subang Jaya, Sunway Resort City, Shah Alam and Klang,” it said.

The Lebuhraya Damansara-Puchong is on the northern boundary of the land.

Much of the 17 acres is leasehold while 0.2 acre is freehold.

The land was purchased through an open tender. It took into consideration the development potential of the land, which met its required internal rate of return.

“Given Sunway’s knowledge of the market value of the surrounding properties and the potential development value of similar land within the vicinity, i.e. Kelana Jaya, no valuation was carried out on the land,” it added.

It will buy the land through bank borrowings and/or internally generated funds and expected the acquisition to be completed by the second half of the year.

Sunway’s net gearing stood at 0.3 times as at end-December 2014.

“Properties in Petaling Jaya are welcomed due to scarcity of land and continuous population growth. Petaling Jaya, being one of the most developed areas in terms of population and economy, has long been an area of focus by Sunway.

“Sunway is confident that the project will receive positive response when it is launched,” the company said.

It had conducted a feasibility study before bidding for the land while it also studied surrounding projects to assess the viability of the project.

Other nearby integrated projects include WCT Holdings Bhd’s RM1.8bil Paradigm commercial development and Mah Sing Group Bhd’s RM3.2bil Icon City.

Paradigm at Kelana Jaya consists of a shopping mall, corporate offices, serviced residences and hotel suites.

Meanwhile, Icon City, located at SS8, Petaling Jaya, comprises serviced apartments, retail shops, mall, offices and hotel on a 20 acres.

Sunway closed 1 sen lower to RM3.40 with a market cap of RM5.94bil.

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Innovative projects to attract buyers

Penang’s softened property market has become a signal for developers to be more caring and innovative. This year sees more affordable, innovative and value-added housing schemes in line with the state government’s policy.

An aerial view of the Gurney Drive and Kelawei Road neighbourhoods, an upmarket commercial and residential areas in the North-East district.

THE current challenging situation in the property market plagued by high rejection rate of bank loans, inflationary concerns and prospects that bank interests will hike, is pushing developers to initiate new products and sales strategies to sell their products.

Since late last year, Penang and Kuala Lumpur-based developers have devised various strategies to counter the dampened property market.

These strategies include launching affordable properties in prime areas, tagging innovative projects at around RM800 per sq ft, and building new projects within integrated mixed-developments or green environment.

Penang-based developers, Ideal Property Group and BSG Property Group are responding with plans to build affordably priced residential properties in prime areas, changing the landscape of affordable homes.

Affordable property projects in Penang, according to the state government’s guidelines, are priced between RM200,000 and RM400,000, targeting the first-time buyers’ market.

Until about a year ago, Penang island’s south-west district was known as the locality for affordably priced properties.

As an example, since 2008, Ideal Property has developed over 4,000 units of such housing worth some RM3bil in gross development value (GDV) there. But since late last year, Ideal and BSG started looking at building affordably priced properties in Tanjung Tokong, a prime residential neighbourhood in the north-east district.

The completed Lagenda@Southbay landed properties by Mah Sing in Batu Maung.

“There is a (mis)perception in the market that affordable projects are similar to low-medium cost houses.

“Our affordable schemes, marketed under the I-Condo brandname, are priced around RM300,000 to RM400,000.

“We provide quality finishes and a wide range of recreational facilities. All the units come with a free car park,” Ideal executive chairman Datuk Alex Ooi discloses.

BSG Property also plans to launch 998 affordable condominiums in Tanjung Bungah in mid-2015.

Ideal Property executive chairman Datuk Alex Ooi.

The state government’s new incentives for developers involved in affordable property schemes are spawning the trend towards the building of more affordable housing in prime and strategic locations.

Under the state’s affordable housing guidelines introduced last year, developers are allowed to build 2.8 times or a total of 122,000sq ft of built-up area on an acre of land, all comprising affordable homes.

Penang’s softened property market has become a signal for developers to be more caring and innovative. This year sees more affordable, innovative and value-added housing schemes in line with the state government’s policy.

Innovative projects to attract buyers Under the old guidelines, the plot ratio was also 2.8 times, but developers had to make sure 30% of the units have low-medium cost price tag of RM72,500, and another 35% in the RM200,000 to RM400,000 price range.

“For example, they can build 144 condominiums of 850sq ft in built-up, or a mix of 750sq ft, 900sq ft, and 850sq ft units as long as the total built-up area of the units did not exceed 122,000sq ft on one acre.

“This is why you can see developers getting involved in the affordable home projects in prime locations.

“These affordable properties will put pressure on mid-range houses priced between RM500,000 and RM700,000,” says Real Estate & Housing Developers’ Association (Rehda) Penang chairman Datuk Jerry Chan.

Inflationary concerns and fear of an interest hike are also influencing developers to plan for innovative value-added schemes priced around RM800 per sq ft, according to Raine & Horne Malaysia senior partner Michael Geh.

From market surveys conducted, developers are aware there is still strong demand for properties tagged at about RM800 per sq ft, provided the homes are well designed and fitted with the essentials of modern-living, and located within a mixed-integrated development or in a secured and green environment.

Penang REDHA chairman Datuk Jerry Chan.

“Some of these schemes are IJM Land Bhd’s RM220mil Waterside Residence Condominium project in the business hub of The Light Waterfront Penang, located next to the Penang Bridge.

“It is a smart way of selling residential properties, as the commercial environment will create demand for the homes from those working in the business hub.

“Even if the buyers do not want to stay there, they will also have no problem renting out the properties,” Geh observes.

Eco World’s EcoTerraces in Paya Terubong are fitted with essentials such as cabinets and wardrobe, air condition, vanity top and water heater for each of the units to attract buyers.

“Eco World is also allocating at least 70% of the 13 acre site for green space, which is an unusual sizeable green space for a project in the suburb of the island.

“This is another way to sell properties during challenging times like now,” he says. The secondary property market provides an alternative for house buyers looking for homes on strategic locations in Penang.

“It is still a very vibrant market, as a significant percentage of transactions in the local property market are in the sub-sales segment, due to the fact that the homes are ready and there are more choices in terms of location for the buyer to choose,” Geh adds.

According to Chan, there has been at least a 30% decline in property transactions so far this year, compared with the same period last year.

“Moving ahead, we can expect to see little or no appreciation for high-end condominiums.

“The mid-range high-rise properties with price tags of RM400,000 to RM500,000 are likely to see appreciation.

IJM Land Bhd (Northern Region) senior general manager Datuk Toh Chin Leong.

“We can also expect to see lower demand for landed residential properties priced between RM3.5mil and RM5mil,” he adds.

On bank loans, Rehda Penang deputy chief Datuk Toh Chin Leong says for some projects, the rejection rate is as high as 50%.

“It is very common nowadays for developers to return the deposit payment when the loan facility is turned down.

“This is something you don’t see three years ago, but is happening more and more often in the past 18 months,” Toh says.

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F&N to launch RM2bil PJ property project in 2016

Lim: ‘We are a different kind of developer. We don’t have a property division with 500 people, we are quite lean.’

KUALA LUMPUR: Food and beverage company Fraser & Neave Holdings Bhd (F&N) is looking to launch its RM2bil integrated property project at Section 13, Petaling Jaya, by the second quarter of 2016.

The company had earlier anticipated to launch the project last month, but delayed it due to weak market sentiment.

Chief executive officer Lim Yew Hoe, who only recently joined F&N, said the company was also taking the time to review the project to enhance its product offering.

“We have been looking at what products we, in this softening property market, could come up with that would provide comfort to buyers that they are buying into something that is really good. This is why we have to deliberate a little bit longer,” he told reporters at a briefing.

The project, called “Fraser Square”, is a joint venture with Singapore-based Frasers Centrepoint Ltd. It consists of five phases comprising 900 serviced apartment units on top of a shopping mall, small offices home offices, a corporate office and hotel components.

“We are a different kind of developer. We don’t have a property division with 500 people, we are quite lean,” Lim said.

He added that F&N was not in a hurry to launch the Section 13 project, and considers the land to be very valuable.

“We are not slowing down our construction. By the time we launch, hopefully, we would have done some work and the buyers would very clearly know what they are getting,” he said.

Chief financial officer Soon Wing Chong added that once the project commenced, it would be developed over a six-year period. “The land belongs to us, that is why we have a little bit of luxury in terms of timing our launch,” he said.

Meanwhile, Soon expects to keep revenue growth at “current levels” for the second half ending Sept 30, 2015, despite uncertainty in consumer spending following the implementation of the goods and services tax (GST) in April.

He added that interest rate hikes by Bank Negara would also affect consumer sentiment.
On Tuesday, the company announced a 3.5% increase in net profit to RM70.49mil for the second quarter ended March 31, 2015.

Revenue was marginally higher at RM939.89mil against RM935.4mil in the same quarter a year ago. Soft drinks revenue saw a 11.8% decline despite Chinese New Year trade and promotional activities.

The company attributed its performance to the heavy pre-GST destocking by its distributors and retailers. However, Soon said F&N was already seeing some restocking activities and expected the destocking activity to reverse between April and June.

Dairies Malaysia also saw flat revenue during the quarter due to cautious spending. Sales recorded by Dairies Thailand were 15.6% higher due to increased outlets penetration, improved trade and consumer off-take, as well as a higher level of promotional and trade management activities.

For the first half, F&N saw net profit grow 2.6% to RM140.43mil against RM136.86mil in the previous year. Revenue was 4.9% higher at RM1.976bil from RM1.883bil in the first half in 2014

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IJM goes for meritocracy to manage company

Soam was appointed managing director of the construction giant last month.

PETALING JAYA: IJM Corp Bhd is essentially managed by the key executives of Road Builder (M) Holdings Bhd of yesteryear, which the former acquired in 2007.

Datuk Soam Heng Choon was appointed last month as managing director of the construction giant that has transformed into a well-diversified group with its pre-tax profit exceeding RM1bil.

The next person after Soam, who has five more years to go before he retires, is Lee Chun Fai, who is the new deputy CEO and deputy managing director.

Former chief executive officer and managing director Datuk Teh Kean Ming said the appointment of the two to the top positions showed that IJM practised meritocracy.

“It does not matter where you come from… if you can assimilate into the IJM culture and perform, you will be given the due recognition,” he said in an interview recently.

Soam and Lee were previously from Road Builder prior to the acquisition. A check on its website also revealed many of the Road Builder employees are running divisions of IJM now.

When IJM announced in October 2006 the takeover of its nearest competitor, Road Builder, lock stock and barrel for RM1.56bil, the general view then was that the former wanted Road Builder for its order book.

According to reports, IJM had said the acquisition was more about manpower and talent, which was dismissed by many sceptics. But now that has turned out to be the case – eight years after the merger was completed in end 2007.

IJM is a product of a merger between three medium-sized local construction companies – IGB Construction Sdn Bhd, Jurutama Sdn Bhd and Mudajaya Sdn Bhd in 1983,

The Employees Provident Fund is the single-largest shareholder in IJM with a 11.85% stake. IJM can count itself as the largest professionally-run company in Malaysia with an impressive track record of rewarding shareholders and employees.

It is a tradition that was started by its founders. The first managing director was Koh Boon Chor followed by Goh Chye Keat. The current deputy chairman Tan Sri Krishnan Tan was the third MD of IJM and Teh was the fourth.

“Teh is last of the top management who had worked with the founders. Soam is the first to be holding the top post and who is not from IJM itself. But he has learnt the culture well. IJM rewards those who do well,” said an industry executive.

He citied the example of Tan who was the first non-engineer to be appointed MD of IJM because the founders were confident that he could perform.

IJM is known to run a tight ship, which is vital for a construction company to prevent leakages. There are several checks and balances to ensure that there is no one person authorised to sign off large cheques. All tendering of projects beyond RM1bil will have to go through the board that comprises people well-versed with project management.

“It has to pass muster with the board first who scrutinises all numbers,” said the official.
IJM adopts a system where all its jobs including internal ones are tendered out.

“At IJM, we believe that no department should be a parasite to another. There is no parasite culture here, even within the group, we tender for jobs on a competitive basis, based on market rates,” Teh said.

He explained that everything was based on market rates and that its construction arm cannot subsidise its property arm.

IJM’s phenomenal growth over the past three decades is the result of its unwavering focus on its core competencies, diversification into strategically related businesses and selective expansion into new markets.

It ventured into property development out of necessity during the recession in the mid-80s. There were fewer construction opportunities then but the Government provided land for companies to build mass low and medium cost houses under privatisation programmes.

IJM Land has some 4,900 acres of undeveloped landbank, with a gross development value of RM30bil.
IJM currently owns and operates several toll concessions in Malaysia, namely the Sungai Besi Highway,

New Pantai Expressway and Kajang-Seremban Expressway. It also has a port concession in Kuantan. The opportunity came about when Road Builder was up for sale in 2006.
IJM closed seven sen down to RM7.33 last Thursday giving the company a market capitalisation of RM13bil.

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Government to build 100,000 houses to show its gratitude

KUALA LUMPUR: The Government has initiated many housing schemes to meet the needs of its people, including one specifically for civil servants, said the Prime Minister.

Datuk Seri Najib Tun Razak said to meet the growing needs of civil servants for affordable housing, the Government had set up Perumahan Penjawat Awam 1Malaysia (PPA1M) programme with the aim of building 100,000 units nationwide.

“We are aware that civil servants aspire to own houses but like others, not all can afford it as the prices in the open market are not within their reach.

“This is our way of showing gratitude to Government staff for their dedication,” he said at the launch of PPA1M scheme in Bukit Jalil yesterday.

A similar scheme had been launched in Putrajaya involving more than 15,000 units under Phases 1 and 2.
Najib stressed that the Govern­ment would not be making further payments for this project because the land had been awarded to the developer, which would use profits from development on part of the land to build the houses.

“As the Government wants its staff to enjoy comfortable living that comes with good amenities, a moratorium of 10 years is imposed before they can sell the units.

“We hope that with their housing needs settled, civil servants can continue to give their best to serve the people,” he added.

The Government has earmarked the construction of 80,000 units of houses by 2020 in Kuala Lumpur, Putrajaya and Labuan to meet the growing need for housing in the Federal Territories.

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CapitaCommercial Trust Q1 distribution per unit rises 3.9%

CapitaCommercial Trust booked a distribution per unit of 2.12 Singapore cents in Q1 2015, up 3.9 per cent year-on-year from 2.04 cents.

SINGAPORE: CapitaCommercial Trust (CCT), Singapore’s largest office real estate investment trust (REIT), has reported a 3.9 per cent year-on-year rise in its distribution per unit (DPU) for Q1, on the back of higher net property income and distributable income.

The estimated DPU for the financial quarter ended Mar 31, 2015, was 2.12 Singapore cents, up from 2.04 cents a year ago, said CCT in a news release on Wednesday (Apr 22). The distribution yield was 5 per cent, based on the closing price per unit of S$1.725 on Apr 21 and an annualised Q1 2015 DPU.

The firm attributed the increase to higher net property income from its wholly-owned properties and more distributable income from its 60 per cent stake in integrated development Raffles City Singapore.

The net property income in Q1 2015 was S$53.9 million - 6.4 per cent higher than S$50.7 million in the same period a year ago. CCT's distributable income in Q1 2015 was S$62.8 million, up 4.7 per cent year-on-year from S$59.9 million.

CCT said its portfolio committed occupancy, including its new Grade A office building CapitaGreen, is 97 per cent, above the market occupancy rate of 96.1 per cent as at Mar 31, 2015. CCT also signed about 240,000 square feet of new leases and renewals in the latest quarter.

The monthly average office portfolio gross rent grew 2 per cent quarter-on-quarter, from S$8.61 per square foot at end-December 2014, to S$8.78 per square foot at end-March 2015. Its Grade A properties hit monthly rents of between S$12 and S$16 at CapitaGreen. 

Going forward, limited new office supply in 2015 may still result in rental growth this year, but the growth may be moderated by the expected large future supply due to be completed from Q2 2016 onwards, it added.

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Hartamas presents new homes in North London ideal for investors

11th – 12th April 2015, Kuala Lumpur – Leading Malaysia estate agency, Hartamas Real Estate launches a collection of luxury apartments in Finsbury Park, North London which have a predicted annual yield of 4.5 – 5%.

The first phase of Aqua, a new build development by Fairview New Homes, will comprise 32 one, two and three bedroom apartments ranging from 458 sq. ft. to 948 sq ft with prices starting from £437,750.

In the heart of Finsbury Park, in North London, the development will benefit from excellent transport connections and picturesque surroundings.

Multi-million plans to enhance nearby Finsbury Park’s retail offering and public transportation will add further value to the development.

Robert Fraser, Managing Director of Fraser & Co, comments: “Finsbury Park is certainly on the up as investment from the council and independent developers demonstrates. Offering the best of both worlds with easy access to central London and beautiful green surroundings found at Finsbury Park, the area appeals to young families who work in the city.

 Regeneration plans for Finsbury’s commercial spaces are also creating more residential opportunities with a number of exciting new build developments already taking shape.”

Apartments which will complete from Q4 2015 onwards feature contemporary, stylish interiors with open plan design.

Oak flooring has been used throughout the living and dining areas while plush carpets give the bedrooms a luxurious feel. Kitchens come with high gloss units, stainless steel Zanussi ovens and fully integrated washer dryers and fridge freezers.

A three minute walk from Manor House tube station, Aqua residents will be able to reach central London in a matter of minutes as Piccadilly line services to Kings Cross and Oxford Street take just eight and 12 minutes respectively.

A little further on, Finsbury Park has both overground and underground trains across London with direct trains to Heathrow airport. With excellent connectivity, London’s top attractions and world-class universities will be on Aqua’s doorstep.

UCL, which placed 5th in the QS World University Rankings this year, and King’s College, one of England’s oldest and most prestigious university institutions, can both be reached in less than half an hour.
Prices for a one bedroom apartment start from £437,750, while two bedrooms are available from £514,999 and three bedrooms from £586,585.

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UEM Sunrise unveils plans

(From left) KLK Land Sdn Bhd director Datuk David Tan, FASTrack director Barry Kan, Tay, UEM Sunrise CFO Azhar Othman, Cheah, Ismail and property expert Ho Chin Soon at the media briefing.

NUSAJAYA: UEM Sunrise Bhd has unveiled its comprehensive development plans for the second phase of Gerbang Nusajaya, attracting international investors into its commercial and business development.

Its chief operating officer Raymond Cheah said 1,841.72ha of the entire development were designed for growth via catalytic developments and strategic partnerships with established developers and multinational companies.

“Among the developments in the second phase are a 210ha integrated eco-friendly tech park, namely Nusajaya Tech Park and FASTrack Iskandar, which is a 212.40ha motorsport city.

“The Nusajaya Tech Park is on target to complete its first batch of ready-built facilities by year-end, while FASTrack is close to finalising the details for the commencement of physical construction works,” he said.

Cheah said during a media briefing at its sales gallery in Puteri Harbour Clubhouse here yesterday that Gerbang Nusajaya commanded a gross development value of RM42bil which would be developed over 25 years.

“Upon full completion, it is expected to create 76,000 direct and 137,000 indirect jobs, together with some 220,000 population.

“A balance of 64% of Gerbang Nusajaya’s landbank is currently uncommitted for development and UEM Sunrise is planning to develop it holistically on a phase-by-phase basis,” he added.

Meanwhile, Ascendas CEO William Tay said the tech park, which offered both ready-built factories and land for build-to-suit, had recorded a 73% take-up rate. The tech park is a joint venture between Ascendas, a well-known property company from Singapore, and UEM Sunrise.

“Apart from flagship clients Telekom Malaysia Bhd and Sanwa, some 88% of the investors are international traders including Singaporeans,” he said.

Iskandar Regional Development Authority CEO Datuk Ismail Ibrahim said the authority would continue to offer specially customised incentives to attract more investors.

“To attract investments into Iskandar Malaysia, we have to offer incentives to investors who are promoting the nine key economic sectors,” he said, adding that the incentives could come in the form of a tax waiver for a selected period of time.

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MRCB the favourite in RM1.1bil land deal

MRCB 2nd KL land purchase?

PETALING JAYA: Malaysian Resources Corp Bhd (MRCB) is said to be in the lead to purchase the French embassy land which is one of the few remaining sizeable parcels of land in the city centre.

Sources said MRCB had the best offer on the table for the 7.9 acres that the embassy is disposing through a competitive tender.

If MRCB wins the bid as expected, it would be buying a second piece of land in the city, a week after announcing its purchase of the German embassy’s 1.87 acres in Jalan Kia Peng last week.

The French embassy land, comprising two parcels, with a combined acreage of 7.98 acres along Jalan Ampang is said to be sold at about RM3,188 per sq ft.

At that price, it will cost the government-linked company about RM1.108bil. There are two pieces of land involved in the French deal, one which has a residential title while the other is insitutional land.

The deal is expected to be signed this week, sources said. According to press reports, the tender closed on Feb 12 this year. There was no reserved price for the French embassy land.

Interested parties “would know” the market value, a source said.

The land is located opposite the former British High Commission which was sold to SP Setia in late 2012. 

The developer bought the 3 acres, at RM2,200 per sq ft, at a premium of 47% over its reserved price of RM1,500 per sq ft. As with the French parcels, the British High Commission land comprised two parcels, a residential and a commercial parcel.

MRCB’s first purchase in Jalan Kia Peng last week is expected to result in a commercial development. Within walking distance of the Kuala Lumpur Convention Centre, the price MRCB paid at RM3,188 per sq
 ft translates into about 6% premium to the market value of the land based on appraisals conducted by independent valuers, press reports said.

AM Research said in its research report last week the merits of MRCB’s German purchase will be anchored by its strategic location and possibly, an attractive plot ratio. The project could kick off early next year with an indicative gross domestic value (GDV) of about RM1.3bil, Am Research said.

“We believe that the latest development reaffirms MRCB’s increasing penetration as an urban property developer, with a lucid focus on highly visible or transport-oriented developments,” it said.
MRCB said the acquisition of the German land was part of the group’s expansion strategy after taking into consideration the scarcity of freehold land in the sought-after KLCC area.

According to several industry sources, land sales in the city has been brisk since the British High Commission sale with other diplomatic missions giving up their land in order to relocate to a building.

The two German land sales – the former Goethe Institute site and the German ambassador’s residence in Jalan Kia Peng – and now the French embassy land lend credence to this.

But it is not just diplomatic missions giving up their land that is sparking interest among local land-hungry developers. The entrance of foreign developers, from China and Singapore has also pushed up prices.

In 2013, Oxley Holdings (M) Sdn Bhd, a unit of Singapore-based developer Oxley Holdings Ltd, purchased 3.2 acres in Jalan Ampang, forking out RM3,300 per sq ft, with an absolute price of RM446.7mil. Located on the Pelita Nasi Kandar site, it is separated from the Petronas Twin Towers by Wisma Central.

Land value has moved up in the city considerably the last several years. City Hall’s “continual increase of plot ratio” has also fired up the imagination of land owners who demand high prices.

Land value is dependent on the plot ratio and land use. The higher the plot ratio, the higher the development.

  

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Development with a vision

Sleek and stylish: The first phase of Aspen Vision City known as Verve, is the largest gated and guarded commercial precinct in the northern region.

PROPERTY hunters are in for a bargain with hard-to-resist deals by Aspen Group in the upcoming Home & Property Investment Fair by iProperty.com at the Kuala Lumpur Convention Centre (KLCC).

During the fair from Friday to April 19, the Penang-based property development and real estate investment group will showcase its gated and guarded commercial precinct – Verve, which is the first phase of Aspen Vision City in Bandar Cassia, Batu Kawan.

Aspen Vision City is a joint venture development between Aspen Group and Ikano Pte Ltd.

Touted as the first and largest of its kind in the northern region, Verve, which utilises the High Street concept, sits across 14.1ha (35 acres) of freehold land.

It consists of 441 units of three-storey (intermediate units) and four-storey (corner units) shop offices with build-up ranging from 3,300sq ft to 12,150sq ft.

It is also the gateway to the first IKEA store in the northern region as well as a state-of-the-art regional shopping centre that will be managed by Ikano Pte Ltd.

Its aesthetic building façade is suitable for all types of business. The modern project with practical and spacious column-free layout design will also help minimise the renovation cost for tenants post completion as they will only need to renovate the interior to suit their business needs.

Each unit is equipped with a private lift for ease of access and transportation of goods to the upper floors.

Property buyers will enjoy four years of defect liability period while there will be security guards on standby and 24-hour patrolling.

Verve is set to be the region’s largest commercial hub and central business district and it is also supported by comprehensive infrastructure, meticulously planned development components, strategic location and excellent accessibility that caters to the demand by the masses.

It is currently under the preview stage where interested buyers can select their preferred unit and place their booking with the company.

Strategically positioned at the landing point of Sultan Abdul Halim Mu’adzam Shah Bridge, Verve is easily linked to and within close proximity of the island as well as numerous townships on the mainland and neighbouring states.

With a gross development value of RM723mil, work on Phase 1 of Verve is estimated to commence in the fourth quarter of 2015 and it will be completed in 2018 with its overall development to be completed in 2025.

Owners can also be rest assured that Batu Kawan is the next metropolis crafted by the Penang government with clearly demarcated zones including residential, commercial, leisure, tourism, industrial, education, hospitals and sport and recreational.

Attractive indicative price for the Verve project starts from RM1.36mil, which is about RM412 per sq ft.

Early bird buyers will get an attractive deal from the developer during this exhibition. Interested investors are urged to seek out more information from Aspen Group. Visit Aspen Group during the fair at KLCC Hall 2, booth 101-116, from 11am to 8pm to find out more about the deals.

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Ken Holdings plans RM80mil property project in Kelantan

BY INTAN FARHANA ZAINUL

KUALA LUMPUR: Property developer Ken Holdings Bhd is planning a RM80mil project, comprising hotels and service apartments, in Kelantan this year as it seeks to expand revenue base to the east coast.

Group executive chairman Datuk Kenny Tan said the proposed development in Kelantan would have 200 service apartments and a 150-room hotel on an acre next to the Kota Bharu Mall.

“We have received the necessary approvals. At the moment, we are making some amendments. This project is a joint venture with the Kelantan state,” he told reporters after Ken Holdings’ AGM yesterday.

He added that the company had also earmarked several hotel developments on its existing landbank, such as in Genting Highlands, Johor Baru and Shah Alam, in line with its plan to increase recurring income moving forward.

Currently, the company has a landbank of 112 acres in Pahang, Malacca, Penang, Perak and Johor Baru, which would keep it busy for the next 10 to 15 years. It has unbilled sales of RM230mil.

Ken is also expected to start churning more than RM10mil a year of recurring income by year-end from the rental of its Menara Ken @ TTDI office tower in Taman Tun Dr Ismail.

Tan envisaged that the building, which is located along Jalan Burhanuddin Helmi would be completed by the end of this year.

The group has reportedly invested RM120mil in Ken TTDI project.

Menara Ken @ TTDI boasts platinum-grade office spaces, an art gallery, a performing arts theatre, a roof-top pool, a sky bar, a gymnasium and a vast variety of F&B outlets.

“It is expected to provide a long-term recurring income for the Ken group,” he added.

For the financial year ended Dec 31, 2014 (FY14), Ken posted a 53% rise in net profit to RM31.95mil from RM20.90mil previously. Revenue rose to RM91.08mil in FY14 from RM55.83mil a year ago.

Tan said the company was also looking to launch its Ken Rimba Condominium 2 in Shah Alam, which would have a 240-unit condominium, by end-2015.

“The total GDV of Ken Rimba Condominium 1 project is about RM340mil and we have developed about 15% of the project,” he said.

The Ken Rimba Condominium 1 is part of the Ken Rimba township, comprising 653 units in three blocks of condominiums and 26 pool villas. The first phase of the project was launched in July last year, with a take-up rate of 75% for the entire project.

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MRCB submits bid to buy French embassy land

MRCB 2nd KL land purchase?

PETALING JAYA: Property developer Malaysian Resources Corp Bhd (MRCB) has confirmed that it has submitted a bid to acquire the French embassy land in Kuala Lumpur.

This confirms a StarBiz report yesterday on the probable RM1.1bil deal quoting sources.
MRCB in its filing with Bursa Malaysia yesterday said the company had on Feb 12 submitted the tender for the French embassy land and is still waiting for the outcome of the tender.

“We will make the appropriate announcement to Bursa Malaysia in accordance with the listing requirements, as and when required,” it said.

According to the report, MRCB was speculated to be in the lead to purchase the French embassy land which is one of the few remaining sizeable parcels of land in the city centre.

According to the sources, MRCB had the best offer on the table for the 7.9 acres that the embassy is disposing through a competitive tender.

If MRCB wins the bid as expected, it would be buying a second piece of land in the city, a week after announcing its purchase of the German embassy’s 1.87 acres in Jalan Kia Peng last week.

The French embassy land, comprising two parcels, with a combined acreage of 7.98 acres along Jalan Ampang is said to be sold at about RM3,188 per sq ft.

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Highest award: The outside view of University college of Technology Sarawak.

SIBU: University College of Technology Sarawak (UCTS) has become the first university in the world to be platinum-rated for the Green Building Index (GBI) award.

Its vice-chancellor Prof Datuk Dr Abdul Hakim Juri said the university which started operations on April 1, 2013, had scored 87 points, one more than the minimum 86 which is required for the award.

“UCTS is the first university in the world to receive the highest rating for a green building,” he said, adding that it would be presented with the award next month.

The GBI rating system is regulated by the GBI Accreditation Panel which is an independent committee consisting of PAM (Malaysian Architect Organisation) and Association of Consulting Engineers Malaysian professionals.

In revealing this during a visit by state Welfare, Women and Family Development Minister Datuk Fatimah Abdullah yesterday, Dr Abdul Hakim said UCTS fulfilled a lot of conditions, mainly on energy conservation, that needed to be met to achieve the rating.

Hence, he said, green technologies had been incorporated into the buildings to preserve energy and the environment.

“We are now using 50% less energy than any normal building as our buildings have double glazing glass to conserve energy.

“Our buildings are also fitted with Light Emitting Diodes (LEDs) to reduce energy consumption. With motion sensors, lights would automatically switch on and off when a person walks under it,” he said.

The university is also harvesting rain water and storing them in the pond in front of the university. The water collected will be recycled for air conditioning and flushing of toilets while the water from the toilets will again be recycled for gardening use.

UCTS is built on a 44.08ha of land. Prime Minister Datuk Seri Najib Tun Razak officiated the ground breaking ceremony on Sept 16, 2012.

Currently, UCTS has a total of 685 students and will be able to accommodate up to 5,000 students when the campus is fully completed in the next two to three years.

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Ter injects assets into Sunsuria

PETALING JAYA: Datuk Ter Leong Yap, the major shareholder of Sunsuria Bhd, is injecting his private property assets of over 440 acres worth RM350mil and which comes with a gross development value of RM11bil into Sunsuria.

Out of the proceeds, Ter will be reinvesting some to subscribe for 102.04 million new shares in Sunsuria at an issue price of 98 sen, which will increase his stake to some 58% from 51.12% currently. (98 sen is the theoretical ex-rights price of Sunsuria shares).

According to an announcement to Bursa Malaysia, Ter is mainly injecting shares of Sunsuria Gateway Sdn Bhd, Sunsuria Medini Sdn Bhd and Rentak Nusantara Sdn Bhd into Sunsuria.

These are his private property companies which already own existing property development projects which have a collective gross development value of RM10bil.

Sunsuria has made a proposed subscription for 99.99% of the securities in Sunsuria Gateway for RM1mil. It has also proposed to subscribe for 237 million new redeemable preference shares (Class B) of Sunsuria Gateway for RM237mil.

Secondly, there is a proposed acquisition of a 20% effective equity interest in Sunsuria Medini for RM53.12mil via the acquisition of Concord Property Management Sdn Bhd. Concord currently holds 250,000 shares in Sunsuria Medini, which represents a 20% stake in the latter.

Sunsuria is buying a further 12,500 shares in Sunsuria Medini for RM1.85mil for a 1% stake.

Thirdly, there is the proposed subscription for 25 million new shares of RM1 each, representing 99.01% in Rentak Nusantara Sdn Bhd and the proposed subscription for 32 million new redeemable preference shares for RM32mil.

The indicative fair market value of Sunsuria Gateway which ranged between RM230mil and RM250mil, was based on its 50% share of the indicative enterprise value of Sime Darby Sunsuria Development Sdn Bhd (SDSD), which was appraised by Ernst & Young.

SDSD is a joint venture between Sunsuria Gateway and Sime Darby to undertake a proposed property development project on 346.58 acres of freehold land adjacent to the Salak Tinggi express link station.

Meanwhile, the purchase consideration for Sunsuria Medini was derived based on the market value of RM600mil for the company’s land bank and its ongoing developments as appraised by C H Williams Talhar & Wong on Jan 31.

As for Rentak Nusantara, it is now undertaking an ongoing bungalow development in Setia Alam, Selangor which comprises 68 parcels of bungalow plot known as Suria Hills 2A and 2B.

The subscription price of RM57mil was arrived at after taking into account the market price of the projects as at Jan 31.

The total cash funding required for the proposals amounts to about RM250mil, of which RM11mil has been paid.

The balance of RM239mil is expected to be funded via a combination of internally-generated funds and funds from the fund-raising exercise.

The company’s rights issue of up to 475.08 million shares comes with 158.36 million free warrants,

The company said the rights shares had been fixed at a discount of at least 25% to the ex-rights price of Sunsuria shares.

This will be based on the five-day volume weighted average market price of Sunsuria shares up to the price fixing date. In any case, the issue price shall not be lower than 50 sen per rights share.

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Berkeley Homes launches 250 City Road, London, EC1

The first phase of a new community at the heart of a landmark regeneration area

CGI of 250 City Road

BERKELEY Homes North East London is set to launch the first phase of 250 City Road. This is set to be the most talked-about London residential destination of 2015.

Designed by Foster + Partners, one of the most innovative and acclaimed architectural practices of the decade, 250 City Road delivers the optimum place to live and work.

Situated in the heart of one of London’s most vibrant areas and very close to the city and the capital’s tech and creative quarters, this landmark scheme lays the foundation for an enduring new community. Upon completion, the scheme will comprise 930 homes, expertly built by Berkeley Homes, a 190-bedroom 4-star hotel, office and retail space – all set amid breath-taking architecture conceived to complement the existing surroundings.

Overlooking the city skyline, the development incorporates almost two acres of beautifully landscaped gardens and courtyards, all of which are fully Wi-Fi enabled. The intelligently devised studios, one-, two- and three-bedroom apartments and penthouses are arranged across eight buildings, including two landmark towers reaching up to 42 floors that blend effortlessly with the streetscape.

The first phase of 263 apartments features the tallest building on the development, a 42-storey tower and the delivery of the 190-bedroom, 4-star hotel. A second, 36-storey tower will follow at a later phase. Rising above its surroundings in an iconic cluster, the podium towers are each located at an angle to optimise far reaching panoramas across the city and further out facing London’s periphery, with views becoming more dramatic the further up you go.

Whether north-west towards Angel or south-east to Old Street, the development’s inherent interrelation with the city continues at street level. New pedestrian avenues lead onto a wide central plaza and public gardens which will provide a new urban oasis for residents and the local community to enjoy.

Fulfilling the needs and exceeding the expectations of contemporary luxury living, all apartments are fully fitted with the finest materials including Siemens integrated appliances, underfloor heating, comfort cooling and luxurious bathrooms. An exclusive collection of Platinum residences offers the ultimate in artful elegance:

Finishing touches include fitted surround sound systems and natural stone worktops. Each apartment feature balconies, terraces and/or winter gardens.

Berkeley Homes are working with a panel of expert interior designers – Darling Associates, Scott Brownrigg and Goddard Littlefair to create spacious and elegant apartments with a selection of design palettes. As well as facilitating unparalleled views, the angled apartments have also been developed strategically to fill the interior living accommodation with natural light throughout the day.

CGI of 250 City Road

Residents will have access to a rooftop gym and terrace, linked with the residents’ lounge that will offer panoramic views of the city. A 20m (65.6 ft) indoor pool and spa as well as 24-hour concierge services, complete the offering. The development benefits from secure underground parking and round-the-clock security.

Externally, outside space assumes a new dimension at 250 City Road. Extending to almost two acres (0.8 ha) of peaceful and enclosed green spaces complemented by mature trees, water features and wildflower beds, the public realm provides respite from the confines and pressures of city life. In addition, buyers will enjoy a private, residents-only courtyard which emulates a shady woodland copse.

An expansive retail offering, new cafes, restaurants, shops, Grade A office and studio space allocated for start-up companies surrounding a new central plaza will help cement 250 City Road’s arrival as a principal new quarter in this rejuvenated part of town.

Piers Clanford, managing director at Berkeley Homes (North East London) Ltd, comments: “250 City Road will form the centrepiece of this vibrant area, virtually unrivalled in terms of proximity to the capital’s most dynamic employment hubs and creative districts.

“It also comes with the bonus of being located in one of the capital’s most established residential postcodes located within a short distance from popular neighbourhoods including Hoxton and Shoreditch. Providing all the conveniences of luxury living combined with impressive public realm and world-class amenities, Berkeley
Homes’ investment in the infrastructure will not only add to the area’s current offering but will help further establish City Road’s position as a residential destination.”

Located in Zone 1, 250 City Road will be located a short walk from some of London’s most buoyant employment markets including Silicon Roundabout and the Square Mile as well as the fashionable neighbourhoods of Islington and Shoreditch. Those travelling by tube can reach King’s Cross St Pancras in four minutes, London Bridge in five minutes, Canary Wharf in 17 minutes and Bond Street in 29minutes.

From 2018,Crossrail trains from neighbouring Farringdon will transport residents non-stop to Heathrow Airport in 32 minutes.

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