Steady property demand in Penang

Investment-friendly: A file picture shows visitors at the recent Star Property Fair in Penang. Affin Hwang believes that property developers with land bank and established presence in Penang will benefit from rising property demand.

PETALING JAYA: An increasing population in Penang coupled with long-term property demand will be supported by major projects driven by public-private partnerships (PPPs), according to Affin Hwang Capital Research.

Among the PPP projects, the largest being the RM27bil Penang Transport Master Plan (PTMP), could be awarded by September. Singapore’s Temasek Holdings also has a proposed joint venture with Penang Development Corp (PDC) to develop an RM11.3bil business process outsourcing centre and an international technology park.

The research house said in a report that its top stock picks for infrastructure and property exposure to Penang were Gamuda Bhd, IJM Corp Bhd, and Eastern & Oriental Bhd (E&O).

It said the Penang government had pushed for the economy to move up the value chain by encouraging knowledge-intensive and innovation-led manufacturing and services.

“Property development companies such as E&O, Eco World Development Group Bhd and Ewein Bhd are embarking on new large-scale mixed development projects in the state with total gross development value (GDV) of RM60bil,” it added.

E&O has the highest exposure to Penang with property development projects in the state comprising 77% of GDV totalling RM34bil.

The multi-billion ringgit PTMP has seen keen interest, with six consortiums submitting bids to be the project delivery partner (PDP) while Affin Hwang Capital understands that discussions for the joint venture with PDC were in the final stages.

“The joint development agreement is expected to be inked in July or August. Work on the BPO Prime is expected to start in the first quarter of 2016.” The entry of Temasek would also attract more Singapore companies and other foreign investors to Penang.

“We believe Gamuda will likely be appointed the PDP for the project. Also, being one of the largest contractors in Penang, IJM Corp is expected to win a substantial portion of construction work for the PTMP,” it said.

“The Penang government also managed to convince Hewlett-Packard to choose Penang as the location to set up its new RM1bil manufacturing facility instead of Iskandar Malaysia.”

The plant would produce high-speed inkjet printer heads for the global market.

A ready pool of skilled workers out of a total workforce of 797,700, developed infrastructure, established information technology eco-system, and consistent and investment-friendly state government policies could be the reasons why Penang continue to be attractive compared with Iskandar Malaysia.

The island’s popularity with tourists, diverse culture, historical attractions, beautiful coasts and famous cuisine were added attractions.

“We believe property developers with land bank and established presence in Penang will benefit from rising property demand in the long run.

“Job creation from rising investments in industrial and service sectors should support population growth from organic expansion and inbound migration,” said Affin Hwang Capital Research.

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Nexgram gets delivery order for RM1.15bil ‘Angkasa Icon City”

PETALING JAYA: Nexgram Holdings Bhd has obtained the development order from the Sepang Municipal Council for the RM1.15bil “Angkasa Icon City” project in Cyberjaya, according to a filing with Bursa Malaysia.

Nexgram’s subsidiaries – Nexgram Land Sdn Bhd and Nextnation Datacity Sdn Bhd – had entered into an off-take-cum-sale and purchase agreement with MyAngkasa Bina Sdn Bhd last December.

The agreement would see Nexgram Land undertaking the mixed commercial development project on freehold land held by Nextnation Datacity, measuring 2.39ha.

The Cyberjaya project would be developed by Nextnation Datacity in three phases; with the first phase comprising office and commercial lots, the second phase consisting of shop offices/virtual offices, and the final phase comprising of service suites.

The development would be sold by Nexgram Land and Nextnation Datacity to MyAngkasa Bina, a subsidiary of Angkatan Koperasi Kebangsaan Malaysia Bhd, for RM1.15bil.

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New London development being marketed to Malaysians

By KELLY TEH

(From left) Campbell, Berkeley Homes head of sales Jacob Sullivan, Goh and Lewis at the recent Kuala Lumpur unveiling of South Quay Plaza.

A NEW skyscraper will soon become a landmark in England’s capital.

UK developer Berkeley Group is launching South Quay Plaza in September, a two-tower leasehold residential project that located in the Canary Wharf district in London’s East.

The towers, designed by famous architects Foster + Partners, comprises of a 68-storey, 220m tower as well as a 36-storey tower with 888 residential units in total.

The development will feature studio units, one, two, three bedroom apartments as well penthouses. According to Berkeley Homes managing director Harry Lewis, South Quay Plaza marks the first time the developer is touching base in Canary Wharf.

“It used to be a financial hub, but in recent years has become a mature mixed-use area,” he said, explaining the developer’s choice of the location.

Lewis also said the arrival of the high-speed rail link Crossrail public transportation project in 2018, would change the connectivity of Canary Wharf to other parts of London.

“The Crossrail is a gamechanger. Through it, Heathrow Airport will be less than 40 minutes away while London city and the West End will just be a mere seven and three minutes away, respectively. It will be of a direct link to other underground routes,” added Lewis.

Foster + Partners partner Patrick Campbell said some of the highlights of the development include the smaller building footprint, public connectivity and amenities.

“It is created with an elegant and rationale approach. There’s a generous landscaped public realm measuring over 1.6 acres including a dockside promenande and a pocket park,” said Campbell.

According to Jazmine Goh, head of international residential property services for JLL Property Services (Malaysia) Sdn Bhd, the local marketing agent for the development, the project is expected to see appreciation of 37% over the next five years.

“With new sources of capital coming in, a robust London housing market is expected.

“London is an international city and over the years, investors have found value in Canary Wharf,” said Goh.

The anticipated gross development value of South Quay Plaza is £650mil (RM3.8bil).

Prices range from £490,000 for studio units to above £2mil for larger units. The 68-storey tower is slated for completion in the third quarter of 2021 and the smaller tower in the third quarter of 2022.

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Tips on investing overseas

ONE can consider investing in overseas properties instead of relying on mutual funds or fixed deposits.

“In Malaysia, inflation is high and rental yield is low. Affordability is also at an all-time low with the ringgit falling and oversupply of local properties.

“Overseas investment of properties such as in Australia and UK can be a better choice,” said MIG Network Sdn Bhd chief executive officer Datuk Brian Wee in his talk ‘Is Overseas Property a Better Choice to Invest In With Falling Ringgit and Oversupply of Local Property?’ at the recent Star Property Fair 2015.

“Make sure you get positive rental yield to at least cover repayment.

“Do not settle for anything lower than 6%,” he said.

Feng shui master David Koh from the Malaysian Institute of Geomancy Sciences, in his talk ‘External Environology (feng shui)’, said the thinking brain is influenced by an unseen vibrating energy in the space where one works and lives, which in turn influences the thinking brain to think and decide.

“The clue is to work on how to get the right energy to suit oneself through environology,” he said.

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Allure of the elements

Developer expects project’s location to be a major drawing card

Up in the hills: Yap with a model of the Ion D’eleme project. He says the development is set in a location that capitalises on the beauty of the surrounding area.

YOU can now live up among the clouds quite literally at Ion D’elemen, a project by developer NCT Group that will be the latest addition to the hill resort area of Genting Highlands.

The project, carried out by NCT subsidiary Galeri Tropika Sdn Bhd, is one that group managing director Datuk Seri Yap Ngan Choy feels will truly bring to the fore the beauty of the area.

“Before everything started, I made a personal visit to the actual site itself. I went alone. When Igot to the spot, I immediately felt it was a very good one. It had everything going for it,” he said during an interview at Menara NCT.

Located just a short distance from the main part of Genting Highlands and next to the Amber Court apartments, Ion D’elemen will feature a luxurious resort-like development in the naturally cool highland atmosphere throughout the year.

“There is more green than buildings around Ion D’elemen. The weather is cool and the sunset seen across the rolling hills is a majestic sight, with all the beautiful colours and peaceful ambience,” Yap said.

In an effort to stand out, NCT is bringing an international touch to the project with the concept design from an Australian firm, interior design by a Hong Kong company while the world’s largest hotel chain Best Western Premier is confirmed as the management for the launched phases.

Yap said the first phase, which was launched in 2013, is expected to be completed with the handover of keys early next year while the 75%-sold phase 2 is expected to be completed in 2017.

The entire project, due by 2019, is divided into four construction phases consisting of 1,168 units measuring between 385 sq ft studio to the over 3,000 sq ft penthouse.

Phase 3 is expected to be launched in the fourth quarter of this year and the last phase will be launched in the middle of next year.

Yap is confident that the last two phases of the project will sell fast, especially since the project is now more well known.

“We had to spend a lot of marketing during the first phase. Many people were confused and wary because they believed that an address in Genting Highlands could only be from the Genting Group.

It took a while but our good reputation as a developer and the education effort we went through has paid off,” he said.

Yap said many of their purchasers were locals looking for a good investment as well as a place to get away from the hustle and bustle of the city.

Ion D’elemen has a gross development value of Rm1.1bil and comes with several F&B and retail outlets.

The jewel in its crown, however, comes in the form of a recent partnership with JK Medical Group, famed in South Korea for plastic surgery, among other things, to open a wellness centre at Ion D’elemen.

The project will also feature an outdoor challenge course complete with a flying fox among other things which will help bring people much close to nature as well as a little adventure from all the calming environment.

The freehold property is selling at RM650,000 to Rm4mil per unit with a maintenance fee set at 42 sen per sq ft.

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Sunway Property announces second half launches

Cheah announcing the firm’s upcoming projects for the year 2015.

BANDAR SUNWAY: Malaysia’s master community and top developer, Sunway Property, announced that the corporation will keep to their total sales target of RM1.7bil this year.

In the past six months, the developer has further strengthened its position as a master community developer with the launch of Malaysia’s first elevated Bus Rapid Transit (BRT) – Sunway Line, which connects the 500,000 commuters in the Sunway and Subang Jaya areas to the rest of Klang Valley; the opening of Sunway University’s new 12-storey academic block; joint venture with Daiwa House from Japan to build 100 units of high quality pre-fabricated landed homes in Sunway Iskandar; and the soft launch of the 600,000 sq ft Sunway Putra Mall in KL City Centre.

The joint venture with the Malaysian subsidiary of Japan’s largest homebuilder, Daiwa House Industry, is to build 100 green homes with an estimated GDV of RM210mil in Sunway Iskandar. The developer has also acquired a new 17-acre land bank in Kelana Jaya to develop an exclusive residential enclaves with a lake and golf course views. While there had been no new launches from the property development division, the developer had secured sales valued at RM500mil for the first half of the year on its ongoing projects, despite the weaker market sentiment.

In the pipeline
In the next six months, the developer will continue to track sentiment and plan accordingly to launch a total of six projects. In Klang Valley, the new launches include Sunway Gandaria in Bangi, Casa Kiara 3 in Mont Kiara, new retail and office units within Sunway Velocity in KL South, and Sunway Geo Residence 3 in Sunway South Quay, Bandar Sunway.

In Penang, the developer will launch 48 units of landed homes in Sunway Cassia, Batu Maung with an approximate gross development value (GDV) of RM90mil.

In Sunway Iskandar, Sunway Property will launch its first 196 units of landed homes called Sunway Emerald Residence, at the Lakeview Precinct, which is next to the Sunway International School (SIS) Sunway Iskandar.

“Amidst the softer sentiment, we are pleased to see that there is still demand for our properties. We believe that the positive response that we have received is due to our ‘Build, Own & Operate’ business model, displaying our commitment as a holistic Master Community Developer. We will continue to monitor the market in the next six months while we target our new launches to start from RM500,000 in price,” says Sunway Berhad managing director of property division (Malaysia and Singapore) Sarena Cheah.

Sunway Gandaria is a leasehold 2.06-acre project in Bangi, Selangor, which consists of 259 service apartments and 34 retail units. This projects targets to gross an approximate of RM226mil GDV.

Expected to gross RM336mil GDV, Casa Kiara 3 condominium in Mont Kiara will be developed on a 2.88-acre freehold land and will comprise 288 units. The development will feature dual-key units, which has previously attain success for Sunway Property in Sunway Geo development.

The developer will be launching another 24 units of retail shops and another 40 units of office suites in Sunway Velocity, a RM4bil freehold integrated development, located merely 3.8km from the KL City Centre. Being Sunway’s prominent development, this project consists of a shopping mall, residences, offices, retail shops, hotel, medical centre, and a two-acre Central Park. The retail, hospitality and healthcare components comprising 40% of the integrated city, will be built, owned and operated by Sunway. The development will be served by upcoming MRT and LRT stations.

The developer will also launch Sunway Geo Residences 3, at Sunway South Quay, which will be the final launch in the development. Sunway Geo Residences 3 comprises 420 units of condominiums and 44 units of townhouses. Sunway Geo is a 23.4-acre integrated development with an estimated RM2bil GDV. The development is located within the growing education and healthcare precincts of Sunway Resort City and is served by the newly launched Bus Rapid Transit (BRT) – Sunway Line. Previous launches in this development consist of retail shops, flexi suites, serviced apartments and residences, that have an average of 90% take-up rate.

“The developer’s mid-term strategy is to strengthen its ‘Build, Own & Operate’ model, to ensure that it will continue to enjoy sustainable development profit as well as recurrent income from its investment assets. This fully integrated model diversifies our earnings base especially through our market cycles,’ adds Cheah.

In the first half of the year, the property development division has acquired a new 17-acre land bank in Kelana Jaya that surrounds a 15-acre lake, just 10 minutes away from Bandar Sunway and has easy access via Damansara – Puchong Expressway (LDP), Federal Highway and New Klang Valley Expressway (NKVE). The land is slated to be an exclusive residential development with an estimated GDV of RM1.8bil.

Sunway Property is also planning its first integrated development in Paya Terubong, Penang, on a 24-acre freehold land. The estimated GDV for the development is RM1.5bil, which consists commercial, SOHO high-rise residential and a 1.4mil sq ft shopping mall.

The group’s unbilled property sales of RM2.5bil combined with its remaining land bank of 3,343-acres as of July 2015 and a total GDV of RM50.4bil will keep the property division busy for the next 15 years. The total value of Assets Under Management of the division as of 31 December 2014 was more than RM7bil with a total net lettable area exceeding 8.3mil sq ft, is expected to generate healthy recurrent income for the group.

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Living high in Shah Alam

Popular area: An artist’s impression of garden patio at Emira.

DEVELOPER OSK Property is banking on the hustle and bustle of Section 13, Shah Alam, to sell its new Emira mixed development project by the third quarter of this year.

OSK Property senior manager of sales and marketing Aemy Lim noted that Shah Alam is the rising new hotspot for vibrant living and Emira fit into the vicinity.

“We are blessed with a good location. Section 13 is a busy area. It is where the stadium is located and most of the commercial activity happens there. There are also other high-end residential projects in the area,” she said, adding that the recently announced LRT Line 3 and Bus Rapit Transit infrastructure will be a much welcomed convenience for homeowners in the area.

Emira, with a gross development value of RM275mil, consists of 50 units of retail space and 400 units of residential suites.

Prices of the suites start from RM375,000 with an average price of RM500psf. The units come in one-bedroom (614sq ft), two-bedroom (883sq ft) and three-bedroom (1,227sq ft to 1,238sq ft) options. Maintenance fee for the units is 33 sen psf including a sinking fund.

The high-rise suites are partially-furnished with kitchen cabinets and air-conditioner points. Some of its facilities include a gym, swimming pools and jacuzzi.

Lim said the smaller units come with either one or two parking lots while the two-bedroom and three-bedroom units come with two and three parking lots respectively.

To-date, some 80% of the residential units have been taken up.

“We are currently signing the sales and purchase agreements for the units and there is a waiting list for the smaller units. We are quite ambitious. We are hoping to clear off 100% of the project by the third quarter,” said Lim.

The retail units have been fully sold with prices starting at RM970,000 when they were launched earlier this year. The retail units are expected to house food and beverages as well as service-based businesses.

Emira sits strategically between the upcoming Aeon and Stadium Melawati. The project is well connected to major expressways such as the Elite Highway, Federal Highway, Guthrie Corridor Expressway and Lebuhraya Damansara-Puchong.

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Another residential component of Cybersouth township announced

Pang with a model of the Casaview housing project which is expected to be completed in 2018. – Photos: SAM THAM

FIRST-time house buyers seeking double-storey houses now have another option to consider in the Casaview development in Dengkil, Selangor.

The development by Eco Green City Sdn Bhd, a subsidiary of MCT Bhd, is the second phase of the Cybersouth township development in Dengkil and will feature two-storey link houses with spacious built-up areas ranging from 182 sq m to 251 sq me (1,959sq ft to 2,702sq ft).

Planned as a gated and guarded community of cul-de-sacs and a linear network of wide roads, the developer says Casaview prioritises not just smooth traffic flow and pedestrian accessibility, but also safety.

The development, located some 400m from the boundary of Putrajaya, 1.5 km from Cyberjaya, 30km from Subang Jaya, 35km from KLCC, and 25km from KLIA, is accessible via major highways such as Putrajaya-Cyberjaya Expressway, Elite Highway, South Klang Valley Expressway (SKVE), New Klang Valley Expressway, Maju Expressway, as well as the Damansara-Puchong Highway which links to the B15 Jalan Puchong-Dengkil route via the Persiaran Utara Interchange.

MCT marketing senior manager Sean Pang says buyers of property in the project, expected to be completed in 2018, need not worry about the connectivity or amenities in Casaview.

“It is away from the hustle and bustle of the city, but still connected. Once the MRT line comes up, there will be three stations nearby to service the residents,” he said.

Pang added that Casaview would feature a4ha central park with lakeside walkways, jogging track, gardens, recreational putting ground, children’s playground, as well as a fishing and barbecue deck.

Facilities such as a community clubhouse with a swimming pool and gymnasium will ensure a fun time for all members of the family.

Malls such as IOI City Mall and D’Pulze, and hospitals such as Putrajaya Hospital and Hospital Serdang are located near the development .

Educational institutions in the area such as Nexus International School, SMK Dengkil, UiTM and Lim Kok Wing university will prove convenient for familiers with school-going children living in the four-bedroom houses, which start from RM630,000.

Pang added that the show house for the project will be ready in five months time for public viewing.

“Eighty per cent of the 341 1,959sq ft units have been taken up.

“In two months time, we will be launching the, 2, 702sq ft units but we have already started taking registrations,” he said.

Prior to Casaview, the first residential component phase launched in April, Green Casa, had 418 units which were sold out within two months.

Interested house buyers can visit the MCT Gallery located at ground floor, MCT Tower, One City, Jalan USJ 25/1, 47650 Subang Jaya, call 019 243 5071 or go towww.cybersouth.my.

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Hong Leong Group’s global headquarters heads to Damansara City

KUALA LUMPUR: GuocoLand (Malaysia) Berhad (GuocoLand) today confirmed that its flagship development, Damansara City, has been chosen as the future home for the Hong Leong Group’s global headquarters. The 33-storey Grade-A office tower block in the southwest (direction) end of the iconic development, will be the star anchor tenant within Damansara City, once it is fully occupied by the end of second quarter next year. Office Tower A’s 530,000 sq. ft. of usable area will be progressively handed over to various operating companies within the Hong Leong Group in coming months.

Spread over two 28-storey residential towers, DC Residency residents will enjoy seamless integration with the workings of a five-star hotel, a lifestyle mall and Grade A offices all located within the 8.5-acre (3 ha) freehold development of Damansara City.

“Today’s announcement reinforces the position of Damansara City as the heart of a leading new business district in the Greater Kuala Lumpur and Damansara Height’s community. It underscores our unique combination of factors that sets us apart and has spurred both investor and corporate interest in the project to date. This includes our location within the exclusive enclave of Damansara Heights which is mere minutes away from Bangsar, the KL city centre, the KL Sentral transportation hub and other established townships; the highest levels of seamless integration between our corporate, residency and hospitality facilities; the onsite presence of a refined and curated lifestyle mall; and accessibility through multiple road systems and the soon to be completed MRT line,” said GuocoLand managing director Tan Lee Koon.

Damansara City, with a gross development value of RM2.5 billion, is an Entry Point Project (EPP) under Malaysia’s Economic Transformation Programme. It has been identified as a key component and driver of one the fastest growing business districts in the Greater Kuala Lumpur area with strong and growing interest from buyers and tenants across South East Asia.

The Hong Leong Group is a leading conglomerate based in Malaysia with diversified businesses in banking & financial services, manufacturing & distribution, property development & investment, hospitality & leisure, and principal investment. The Group today controls a number of listed companies in various stock exchanges with hundreds of operating subsidiaries and associate companies in Malaysia to North and Southeast Asia, Western Europe and the UK, as well as North America and Oceania.

The jewel of Damansara Heights, Damansara City is an integrated city development consisting of two Grade-A office towers; two towers of luxury residences known as DC Residency; an F&B-centric lifestyle mall; and a 5 star hotel. The entire project will be fully operational by mid 2016.

Rising jewel within coveted enclaveThe office spaces at Damansara City are setting a new benchmark, not just in the Damansara Heights and greater Kuala Lumpur areas but also inviting great interest in the regional property market. Strong regional demand for both its commercial and living spaces is being driven especially by Damansara City’s strategic location in Damansara Heights and office towers which are MSC-status ready developments that comply with the Green Building Index (GBI) Certified rating; the Leadership in Energy & Environmental Design (LEED) Gold rating; and CONQUAS Quality Assessment for its building construction works.

Hong Leong Group is the first of several prominent brands that are moving their corporate headquarters to Damansara City. DC Mall, the soon to be opened lifestyle and F&B heart of Damansara City is also seeing strong demand for its space as it has already secured in- principle agreements with some well known local and international brands for half its lettable space as well.

“This is translating into ever growing demand for the residential towers within Damansara City which is why we have decided to officially open Tower A of DC Residency for sale to the general public with very attractive packages for early bird purchasers from today,” announced Tan who added that a healthy portion of DC Residency’s units had already been placed through private showings and previews here and around the region.

DC Residency offers two 28-storey residential towers, consisting of 370 contemporarily designed serviced apartments with built-up areas (for typical units) ranging between 899 sq ft (1 bedroom) and 2,705 sq ft (3+1 bedroom).

Residents and tenants at Damansara City will, in addition to the host of facilities, also have access to a walking garden along the top of the retail mall. This is on top of the health and gym facilities that include an Olympic length salt-water pool and an aqua gym for residents at DC Residency.

The choice destination for some of Malaysia’s most influential people, living in Damansara Heights is often seen as the highest mark of stature and accomplishment. It is also a key target for investment among local and international buyers who are looking to invest in integrated high-end property in Kuala Lumpur. Over the years, the tranquil neighbourhood has been a steady investment magnet to affluent homeowners and expatriates but recent interest in developments in the area has reignited higher demand for the increasingly scarce property within Damansara Heights.

Damansara City appeals to buyers looking for a lifestyle close to the amenities offered while enjoying easy access to nearby townships and the Kuala Lumpur city centre. The upcoming MRT station that will be completed in the coming months will also link them to KL Sentral which will house the future KL-Singapore Rail Link station as well which was announced by both Prime Ministers of Malaysia and Singapore last month.

“Now more than ever high achievers and discerning buyers are opting for a social lifestyle that’s about convenience and quality – living close to shops, cafes and amenities with everything they need within reach. GuocoLand, being an expert in creating thoughtful spaces, is leading the way in master-planned communities, as it offers a place for residents to belong – an excellent opportunity for residents to live, work, play and become part of a community of the very best people,” added Tan.

GuocoLand expects Damansara City to have an initial traffic of 10,000 people daily working within the integrated development and average another 6,000 visitors when it is fully operational. The future development of surrounding areas is expected to enhance the foot traffic within the area and further increase the demand for and the valuation of Damansara City’s units in both the residential and commercial towers.

GuocoLand has built an enviable track record as a leading property developer with a history that spans over 50 years in residential townships, commercial and mixed development projects in Malaysia such as the upcoming master planned townships Emerald Rawang and Pantai Sepang Putra, as well as upcoming Alam Damai and Jasin. It is part of the Singapore-based GuocoLand Ltd, which is a leading regional property player with established operations in China, Singapore and Vietnam.

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