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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