City & Country: Seri Pajam introduces green living to Pajam

THE roads of Pajam in Negeri Sembilan, a little over an hour’s drive from Kuala Lumpur, are lined with old kampung houses that have seen better days. Seri Pajam Development Sdn Bhd, the largest developer there, is looking to change that.

Pajam falls under the Nilai district and sits along the main road that connects Kajang and Seremban.

Seri Pajam has already introduced modern bungalows and semi-detached houses to the area with Perdana College Heights, which was launched in 2006. Prior to this, such homes could only be found closer to the Seremban city centre.

Seri Pajam was established in 1994 and has six ongoing projects with a combined gross development value (GDV) of RM1.52 billion. The developments are Perdana College Heights, Citra Hill & Nada Alam in Pajam, Bandar Warisan Puteri in Seremban, Nusa Intan in Senawang, Tiara Heights in Salak Tinggi and Desa Putera in Bahau.

Now, Seri Pajam is offering Pajam a new lifestyle concept. Its director Tey Soo Leng says the developer is introducing green living via Nada Alam — its latest development in Pajam.

Nada Alam, which has a GDV of RM630 million, sits on 160 acres of freehold land separated into five precincts with 13 acres of green space. The first phase — Nada 1 — consists of 198 two-storey terraced houses on 20 acres with sizes ranging from 2,366 to 2,545 sq ft. Prices start at RM420,000.


With a GDV of RM91.7 million, this phase has 26 facilities, including a herb garden, bamboo walkway, reflexology path, soccer field, mini wetland, viewing tower and gazebos. Previewed in August 2014, Nada 1 has been fully taken up.

Seri Pajam is looking to introduce Nada 3 to the market next.

Nada 1 will be completed next year while the entire development will take five to six years to complete.

“We will continue our concept of green living with a mix of products, including super link, 2-storey terraced and semi-detached homes,” says Tey.

Green living
Seri Pajam’s new concept will include green living and the reduction of its carbon footprint. “We have semi-open areas in our super-link designs and bicycle bays in all our parks to encourage the residents to cycle,” says Tey.

Seri Pajam is also fully incorporating the industrialised building system (IBS) in the construction of Nada Alam.

With such green features as rainwater harvesting and extra-wide windows for better ventilation and natural light in these products, one would assume Seri Pajam’s next step would be to go for green building certification.

But Tey says not so soon. “This is our first project with so much emphasis on green features. We need better preparations before we go for Green Building Index (GBI) certification. When we are ready, we will definitely go for it.”

The GBI is Malaysia’s green rating tool. It has been developed to suit the country’s tropical climate and environment.

As green living is new to Nilai and the surrounding areas, Tey says Seri Pajam is testing customer response. Some may say Nada Alam only meets the minimal requirements, but Tey stresses that it has embraced the concept by blending into its natural surroundings, thus reducing the damage of earthworks and other construction processes.

Tey: We will continue our concept of green living with a mix of products, including super link, 2-storey terraced and semi-detached homes in Nada Alam

“Green living was chosen because of its sustainability. It is more sustainable than other concepts in terms of maintenance and its impact on the surrounding environment. Green living also encourages the growth of the lush greenery in the parks and the delicate wildlife they support. We want to present new homeowners with such parks.”

Before construction began, Seri Pajam conducted a river preservation exercise on the site of Nada Alam and also minimised the cutting of trees. The design incorporates a 7km-long jogging path, recycling bins and solar spotlights for the gardens and billboards, among other things.

Besides emphasising green living, Seri Pajam is also introducing new safety features its products. “For property, the most frequent accident is fire, so we will be providing fire blankets, smoke detectors and escape ladders to our developments. Some of these will be introduced in the later phases,” says Tey.

“We have got a lot of support from buyers in Seremban, Nilai and KL. About 90% of our buyers are from the Klang Valley.”

Tey attributes this to the accessibility of Seri Pajam’s developments via Lebuhraya Kajang-Seremban and the North-South Expressway.

“Five years ago, we were a very small company. When we started developing the Pajam area, we could see a rise in population,” he recalls.

According to Tey, the value of properties have gone up quite a lot since.

“We launched Perdana College Heights’ 2-storey units at RM148,000 in 2006 and Citra Hills in 2012 at RM380,000. But now, the subsale prices are RM500,000,” he says. “Our house owners are very happy.”

Seri Pajam has another 300 acres of undeveloped landbank and is still expanding it. Tey believes Nada Alam will become its flagship project there.

Moving on to north Selangor
According to Tey, Seri Pajam is planning projects in northern Selangor next. “Our company has been developing in southern Selangor, in Nilai and Bahau, since 1978. This provided us with the opportunity to focus on building quality products because land prices are still manageable. We can still build comfortable homes for our buyers.

“However, we are planning to move to, maybe, Cheras, Kajang and Petaling Jaya. If we find suitable land in these places, we’ll buy it.”

But even if the developer purchased land in the Klang Valley, it will not be for high-end products like those offered by other developers in the Klang Valley these days, Tey adds.

“Our prices and products will depend on market demand. We started out as a construction company, so we have our own contractor and supplier. We have hardware, manufacturing, construction and development. So, we can save some cost, which will benefit our future buyers.”

Moving forward, Tey is optimistic that the developer’s products will sell well. “As we have enjoyed full take-up, we can proceed with the planning of future components and we are confident at this point.”

Seri Pajam’s Nada 3 is now open for registration and offers terraced and semi-detached homes.  It will officially be launched in March 2014.


This article first appeared in The Edge Malaysia Weekly, on January 20, 2014.

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E&O opens sales gallery for The Mews

KUALA LUMPUR: Eastern and Oriental Bhd (E&O) launched its sales gallery for its latest project, a joint venture development with Japan-based real estate developer Mitsui Fudosan Co Ltd dubbed The Mews on Jan 20.

Currently, 70% of the project has been taken up with 10% of the buyers from Japan.

The Mews offers 256 units with built-ups between 922 sq ft and 2,619 sq ft priced at RM1,700 psf. It offers two 38-storey serviced apartment towers on 1.29 acres (0.52ha) of freehold land in Jalan Yap Kwan Seng.

It commands a gross development value of RM400 million. The sales gallery features three show units with built-ups of between 923 sq ft and 1,459 sq ft.

The development is a 51:49 joint venture project in favour of E&O. Amenities include a gymnasium, squash court, swimming pool, spa pool, pond, residents lounge, children’s pool, children’s playground, function room and herb garden. It also offers 24-hour security and concierge services. Completion is expected within the third quarter of 2017 (3Q17).

According to Eric Chan, deputy managing director of E&O, property has to be seen from a long-term perspective. He feels the prospects for property development in the country are still good at this time.

“Malaysia still has a lot to offer in the region,” he said.

Ryosuke Uematsu, general manager of Mitsui Fudosan’s overseas department, said Malaysia’s economy is stable with good growth opportunities and potential for development.

The launch was performed by Uematsu and Chan along with Lyn Chai, director of E&O’s group corporate strategy and Tomoo Nakamura, executive director and head of Mitsui Fudosan’s residential team. All four took part in the kagami biraki or sake barrel ceremony that required them to break open the sake barrel.

Meanwhile, E&O is expected to launch its latest development in Johor, Avira, in 1Q14. Chan said further details will be announced soon.

E&O is a luxury lifestyle developer listed on the Main Market of Bursa Malaysia. It has a proven track record with a series of exclusive addresses in Kuala Lumpur and Penang. Its projects include Dua Residency condominium in KL city centre, Idamansara and Seventy Damansara in Bukit Damansara, and Seri Tanjung Pinang in Penang.


This article first appeared in The Edge Financial Daily, on January 24, 2014.

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Demand for homes in core central region may pick up-

SINGAPORE: Some market watchers said demand for homes in the core central region could pick up as early as the second half of this year, as prices continue to moderate.

Property consultancy Savills added that some unsold units in the city were even transacted at below valuation.

According to recent marketing materials, Hijauan on Cavenagh is offering units at prices from as low as S$1,701 per square foot.

Located near Orchard Road, a 915 square foot two-bedroom unit is available for just under S$1.9 million.

Property agents said the 41-unit Hijauan project is about 75 percent sold.

It is not the only project selling below valuation.

Alan Cheong, research head at Savills Singapore, said: "We've heard of anecdotal evidence where pricing has been below valuations. In the Newton area for example, prices six months ago was S$1,800 per square foot.

"Today, you can get it for S$1,700 to S$1,600 per square foot for a 1,700 to 1,800 square-foot apartment.

"For core central region, it is probably going to be quite the norm -- (as) we expect more aggressive marketing strategies by developers."

In particular, analysts said the larger units will be a tough sell as cooling measures and loan curbs have affected the buyer's ability to afford them.

Savills said the pricing sweet spot for city homes now is probably between S$1.5 million and S$1.7 million.

Home prices in the core central region fell 1.9 percent in 2013 and some analysts expect to see another 5 percent drop this year. They said that could potentially trigger a return of buying interest for core central region homes.

Chris Koh, director of Chris International, said: "By middle of this year, we would have looked at four quarters of correction. Once the prices adjust by 5 to 10 percent, it would look significant.

"And the moment it looks significant, my gut feel is the buyers and investors who have been waiting on the sidelines will then pour back into the market again."

Market watchers said demand for city homes could also grow if prices of units in the city fringe, or rest of central region, continue to recover.

Home prices in the city fringe rose 0.4 percent in the fourth quarter of last year, compared to the 2.1 percent decline for city homes.

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The changing legal landscape of the property sector in 2014

Lawyer Khairul Anuar writes on the changing legal landscape of the property sector in 2014.

THE property sector received a big jolt when a few measures in Budget 2014 were implemented to put a brake on the overheated property market. It was said that too many people were buying properties in the hope of making fast cash by selling them immediately upon purchasing units from housing developers. Housing developers were said to be making loads of profit by packaging the houses they sell with the Developer Interest Bearing Scheme (DIBS). Banks also made a killing as DIBS needs their participation to be successful. Lines were snaking around the block at most residential property sales launches.

All these came to a halt when a few measures were introduced to the property market with 2014 as the starting point. Will the property sector experience a slowdown or, will it be business as usual? What is the new legal landscape for the property sector? DIBS or any such form of schemes where the housing developer helps the buyers to purchase the property contrary to how payments are supposed to be made as set out in the Sale and Purchase Agreement (SPA) in the Housing Development (Control & Licensing)Regulations 1989 are now prohibited.

Currently, housing projects that come with the new Development Order (DO) are prohibited from offering DIBS. Projects that are still offering DIBS are those that have obtained their DOs before DIBS was prohibited. Real Property Gains Tax (RPGT) is now raised to 30% for any property owner who disposes the property after holding it for less than three years; 20% for disposal between three and four years, and 15% for disposal between four to five years. Upon reaching the sixth year, RPGT will not be imposed on locals. Foreigners and companies will still have to pay 5% of the RPGT. It is a bit more than the tiered system of RPGT that was imposed before April 2007. Foreigners are not allowed to purchase properties below RM1mil.
There are rumours that this imposition is deferred until April 2014. However, there are states in Malaysia such as Penang which has imposed its own measures in restricting sales of properties to foreigners to above RM1mil. The amount imposed before this measure was implemented in Budget 2014 was RM500,000. Each state in Malaysia has its own threshold of sale to foreigners depending on the areas the houses are being built.
Other than the measures in Budget 2014, people should be aware of the highly awaited Strata Management Act 2013 which will supersede the Building and Common Property (Maintenance and Management) Act 2007. Gazetted last year but still awaiting all states in Malaysia to endorse it in order for it to be implemented, this will streamline the issuance of strata title by making it faster for an owner to obtain it from the housing developer. Besides this, it will impose higher penalties for non-compliance, put more responsibilities on the housing developer for the strata buildings and make sure the management of strata properties is more responsible.
>> Khairul Anuar is a practising lawyer who is also an author of books related to property law.

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IGB REIT Q4 earnings rise 7.6%

 

A file picture of shoppers in Midvalley Megamall. IGB REIT has reported a rise of 7.6% in its earnings for the fourth quarter ending Dec 31, 2013.

KUALA LUMPUR: IGB REIT, which owns the Mid Valley Megamall and the Gardens Mall, saw its earnings rise 7.6% to RM158mil in the fourth quarter ending Dec 31, from RM146.9mil in the corresponding quarter a year earlier.

This put earnings per share at 4.63 sen, against 4.32 sen previously.

Revenue for the quarter came in RM114.3mil, up 11% from RM103mil previously. (The profit figure is higher than revenue figure because it includes unrealised gains from assets appreciation.)

IGB proposed a dividend 3.61 sen, amounting to RM123.9mil, and payable on Feb 28, 2014 to unit holders entitled to payment as at 4pm on Feb 18.

Year-to-date, IGB’s earnings rose 103.5% to RM311.9mil from RM153.3mil previously, as revenue totalled RM430.7mil – up 273.6% from the RM115.3mil before.

According to the management, the whopping increase was down mainly to the acquisition of investment properties by IGB REIT that was completed on Sept 20, 2012. Hence, the corresponding period-to-date only covered approximately 3.37 months while current period-to-date covered 12 months of financial results.

Moreover, a revaluation on Mid Valley Megamall and The Gardens Mall by Henry Butcher Malaysia put the market value of Mid Valley Megamall and The Gardens Mall as at Dec 31, 2013 at RM3.56bil and RM1.245bil respectively, from RM3.5bil and RM1.2bil.

IGB REIT said it expected 2014 to be a challenging year, and hence was cautiously optimistic that its financial performance for the year ending Dec, 31, 2014 would be satisfactory.

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UOA in share subscription agreement for land deal

An artist’s impression of UOA Development Bhd’s Bangsar South project. UOA Development has entered into a share subscription agreement with several parties for a land deal in Jalan Klang Lama

KUALA LUMPUR: UOA Development Bhd has entered into a share subscription agreement with several parties for a land deal in Jalan Klang Lama.

In a filing with Bursa Malaysia yesterday, UOA Development said the agreement with Eureka Equity Sdn Bhd, Regenta Development Sdn Bhd, Lau Soon Woh, Mow Chooi Yoon and Kok Koek Hung involved the subscription of three million ordinary shares of RM1 each in Eureka at par by UOA and Regenta.

Eureka has pieces of land measuring about 1.2ha in Jalan Klang Lama valued at RM63.5mil.

The principal activity of Eureka, which is currently dormant, is property development.

Following the share subscription, UOA holds 59.99% stake in Eureka, Lau (10%), Mow (20%), Kok (10%) and Regenta (0.00002%).

UOA said the land was located approximately 1km from the federal highway and was near Mid Valley City and has a prominent frontage to Jalan Klang Lama.

The location of the land is also highly accessible.
“The land is ideal for condominium and commercial development.
“The proposed subscription allows the company to strategically expand its landbank in Kuala Lumpur that matches the fast turnaround strategy,” UOA said.
The company said the proposed subscription was expected to contribute positively to the future earnings of UOA following development of the land.
UOA said its management was optimistic about the prospects of the development of the land.
UOA is the developer of Bangsar South, a RM10bil gross development value integrated development on the former Kampung Kerinchi squatter colony.

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Felcra to kick off maiden property project

Bung: ‘Felcra is planning to bring in overseas investors from the United States and Asean.’ Picture shows FELCRA Chairman Datuk Bung Mokhtar Radin exchanging the MOU documents with Datuk Dr. Choo Yuen May after the signing ceremony between FELCRA and MPOB witnessed by Datuk Haji Ramlee Abu Bakar and Datuk Wan Mohammad Khair-il Anuar Wan Ahmad. – LOW BOON TAT/THE STAR

KUALA LUMPUR: Felcra Bhd expects the construction of its maiden premium mixed property development project in Jalan Semarak, Kuala Lumpur to begin in April and completed within the next three years.
Its chairman Datuk Bung Mokhtar Radin said Felcra had received approvals from the relevant authorities for the 1.8ha project, which would be carried out in two phases.
The project will comprise the group’s new headquarters – a 30-storey Wisma Felcra, condominiums and a shopping mall cum business centre.
The gross development value of the entire project was estimated at RM1bil, of which phase one would cost about RM400mil, Bung told a press conference after the signing of palm tissue culture technology transfer agreements between Felcra and the Malaysian Palm Oil Board (MPOB) yesterday.
He pointed out that Felcra was currently on a diversification mode with interest to expand into new businesses, apart from its traditional core plantation business in oil palm, rubber and paddy .
“This year Felcra is planning to bring in overseas investors from the United States and Asean to undertake joint ventures in its new business ventures and also the existing ones,” Bung added.
According to industry observers, Felcra seems to be seriously looking at diversifying into property development given its prime land bank in Kuala Lumpur and Langkawi, iron ore mining at its land bank in Kuala Lipis and downstream related businesses in the palm oil supply chain.

Bung who declined to comment on the group’s new businesses, however, said: “Most of these new businesses are part of our growth strategy going forward. We will reveal them in due time.”
On the proposed listing of Felcra or one of its non-plantation based subsidiaries, he said: “Apart from waiting for the Government’s approval, the group is still studying the prospect to list (on Bursa Malaysia). We also believe it is still not the right time to go for listing.”
Felcra currently has 260,000ha planted with oil palm, rubber and paddy. Of the total, 170,000ha is cultivated with oil palms.
Bung said Felcra would continue to expand its plantation operations by acquiring land bank either locally or abroad.
Felcra is also undertaking replanting of about 25,000ha this year.
“Our initial replanting cost is about RM150mil for oil palm, rubber and paddy,” added Bung.
Earlier, at the Felcra-MPOB signing ceremony, MPOB chairman Ar Datuk Wan Mohammad Khair-il Anuar said the pact with Felcra reflected MPOB’s commitment to assist industry players in setting up their own oil palm tissue culture facilities.
He said the use of superior oil palm clones in planting was a strategic approach to boost productivity through increasing the yield of oil and fresh fruit bunches.

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