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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