OSK Property expects current projects to sustain 2015 earnings

An artist’s impression of Mirage by the lake condominiums and lake villas being developed by OSK Property in Cyberjaya.

PETALING JAYA: Ongoing residential and commercial projects for the remainder of the year will continue to help sustain OSK Property Holdings Bhd’s earnings.

This is despite the softer property market currently, said the company.

“All of the group’s projects are progressing well and are expected to contribute positively to the earnings of the group for the remainder of the year.

“The board is optimistic that the group will achieve satisfactory results for this year,” OSK Property said on Wednesday.

The group acknowledged that it expects the property market in general to continue to be challenging.

“Despite this, the group’s phase 3 (Eclipse Residence) of Pan’gaea project in Cyberjaya is almost sold out as take up rate reached 98%. Meanwhile, Emira Residence project in Shah Alam has achieved sales of 75%. The Group’s first mall – Atria Shopping Gallery in Damansara Jaya is completing and is expected to open to the public by end of May 2015.

In a report early this year, Jones Lang Wootton Malaysia executive director Malathi Thevendran was quoted as saying that retail space in Klang Valley is projected to grow from 55 million sq ft to 80 million sq ft by 2017.
An industry observer said there is still good demand for retail space, despite large, incoming supply.

“There is still demand, so long as it is meeting the right kind of demand,” he said, adding that potential mall managers should conduct proper research beforehand to determine if building a new mall would be feasible.

For its first quarter ended March 31, 2015, OSK Property’s net profit surged 111% to RM48.3mil from RM22.9mil registered in previous year’s corresponding quarter. Meanwhile, the revenue has seen a surge of 103% to RM284mil from RM139.7mil.

“The higher profit in the first quarter is mainly due to the disposal of freehold land to PR1MA Corporation Malaysia (PR1MA) and higher level of construction work carried out during the current period for on-going projects such as Pan’gaea in Cyberjaya, Mirage Residence in Kuala Lumpur, Atria SOFO suites in Damansara Jaya and Bandar Puteri Jaya in Sungai Petani,” said the company.

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Strong interest in commercial development

Well attended: Prospective buyers checking out property at EkoCheras Hotel and Office Suites launch at its sales gallery in Jalan Desa Gombak 1.

DEVELOPER Ekovest Bhd says it saw brisk sales at the launch of its EkoCheras Hotel and Office Suites project.

Ekovest managing director Datuk Lim Keng Cheng said within the first hour of the launch last month, 50% of the hotel and 40% of the office suites were booked.

EkoCheras is a mixed development situated on a 4.8ha freehold land on Jalan Cheras and is close to the planned Taman Mutiara MRT station. It consists of serviced apartments, office suites, hotel suites and a shopping mall.

“Our concept is to transform the office requirements in Cheras. The traditional businessman in Cheras buys a shoplot and turns it into an office but since we launched our residential units a lot of people have started requesting for Grade A offices.

A Grade A office is a brand new, recently developed or refurbished office building in a prime location.

“That is why we converted our original shops lot into a four-level shopping mall and built an office tower.

“Many people also requested for the hotel. The hotel is flexible, we allow people to invest in it and we will lease back from them or they can choose to stay. It will be managed by Ekovest Asset Management.

“In all our development, we emphasise clean, neat and sustainable designs. Our designs are also durable and energy-efficient.

Changing landscape: Ekovest Bhd managing director Datuk Lim Keng Cheng (left) being congratulated by Federal Territory MCA chairman Datuk Yew Teong Look at the launch of the EkoCheras Hotel and Office Suites.

“We are very particular with the with the materials and systems that we use,” he said at a press conference after the launch at its sales gallery in Jalan Desa Gombak 1.

The hotel suites are priced RM100 per sq ft and come in two layouts of 250 sq ft. The office suites are priced at RM800 per sq ft and range between 1,118sq ft and 2,706sq ft.

The launch was attended by Federal Territory MCA chairman Datuk Yew Teong Look.

Ekovest sales and marketing manager Brandon Lim says the company is well aware of the flooding that happen occasionally in the area and have plans underway to mitigate future floods.

“Kuala Lumpur City Hall awarded tenders on Dec 3 last year to upgrade the Jalan Cheras crossing from Taman Mutiara Barat towards the opposite side of Sungai Kerayong.

“EkoCheras assisted DBKL to design and prepare the pipe culvert tender document for free.

“A total of four pipe culverts with the diameter of 1.5m will be installed to ensure a greater discharge capacity with the existing box culvert. Relocation of services has begun on Jan 8 and DBKL is expecting the completion of the pipe culverts by Sept 16 this year.

“Jalan Cheras fronting EkoCheras Development Kuala Lumpur bound traffic side will be raised between 0.5m to 1m. Accordingly, the basement entry/exit points thus completely eliminating the surface water from entering into the basement.

“As a further measure, the basement will also be equipped with pumps to discharge any incidental surface water originating from the basement entry/exit points,” he said, adding that the company is also building a U-turn ramp to MRR2 heading towards Jalan Ampang which is expected to be completed by 2017.

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Making your home in Semenyih

ONE would never have guessed it, but there’s an exquisite gem that’s waiting to be discovered at Semenyih, Selangor.

Allow yourself to be swept away by the natural beauty of gently undulating hills and enjoy the welcome respite from having a home away from the hectic city life. Consisting of serviced apartment units, Ascotte 

Boulevard is the first high-rise residential development in Semenyih.

There are four types of units, distinguished by two factors — the location (intermediate or corner) and built-up size (860 – 1,100 sq ft / 80 – 102 sqm).

The smaller units are perfect for single individuals or those with small families, considering the affordable price tag of RM286,000. The bigger units would attract those with larger families or people who want more space.

At a recent showing by PropLeague Realty Sdn Bhd, project sales director Steven Tay showed us the unit Type BC, a corner lot with a spacious built-up of 1,051 sq ft (98 sqm). Tastefully designed in an elegant, minimalistic style, it represented the epitome of ‘living in the lap of luxury’.

The unit comes with three bedrooms of a capacious size, two bathrooms, a living and dining area, as well as a kitchen that looks out onto the apartment’s very own private yard deck. The entire area provides enough room to grow and bond with loved ones.

“People have the assumption that Semenyih is far away from main development areas, but with the recent spate of new properties being developed and interest shifting to locations further south, Ascotte Boulevard looks set to amaze its residents,” said Tay.

Propwall has over 100 active listings of houses for sale and rent in Semenyih, Selangor.

Details

Development: Ascotte Boulevard (Type BC)

Address: Jalan Semenyih, 43500 Semenyih, Selangor

Property type: Serviced Apartment

Tenure: Freehold
Bedrooms: 3
Bathrooms: 2
Built-up: 1,051 sq ft
Furnishing: Unfurnished
Selling price: From RM394,000
Selling price per sq ft: RM326
Potential rental: RM1,800
Parking space: 2
Facilities: Health reflexology park, children’s playground, herbs garden, morning jogging track, kindergarten, multipurpose hall, cafe, barbecue area, garden pavilion, infinity swimming pool, wading pool, gymnasium, retail shops, 360° viewing deck, rooftop garden, linear gardens, surau.
Security: CCTV / Control Room, 3-tier multifunction access door, gated and guarded 24-hour security
Maintenance: RM0.22 per sq ft (including sinking fund)
Developer: TopHome Builder Development Sdn Bhd

Neighbourhood
Business: Local and multinational companies at Beranang Industrial Park and Kesuma Industrial Park
Schools/colleges: Kampung Rinching Primary School, Rinching Hilir

Tropicana profit seen improving this year after buoyant Q1

An artist’s impression showing the view from the sky gym of the Tropicana Metropark project in Subang Jaya.

PETALING JAYA: Property developer Tropicana Corp Bhd, which recorded a year-on-year net profit growth of over 140% for its first quarter ended March 31, is expected to see improved earnings this year as more projects come on-stream.

“We expect sales to pick up, as Tropicana only did a soft launch for Tropicana Aman in the second quarter of 2015, which was well-received by the market,” said Kenanga Research in a report yesterday.

UOB Kay Hian Research in its report yesterday concurred: “We expect full-year earnings to improve in the following quarters, as initial quarters would have been seasonally slower.”

Tropicana’s net profit for its first quarter surged 146% to RM19.28mil from RM7.83mil in the previous corresponding period due to higher revenue across key projects and proceeds from land sales.

Revenue during the period increased to RM390.92mil from RM252.68mil in the previous corresponding period. UOB Kay Hian Research said net profit has been seeing improved margins.

“Net margin rose to 16.2% in the first quarter of 2015, as a result of lower finance charges after the company’s move to capitalise the interest expense incurred based on the progress billings of the projects, as well as its developments going through to more advanced stages, and hence, the improvement in margins.”

In a statement on Monday, Tropicana said first quarter earnings were driven by key projects within the Klang Valley, such as Tropicana Gardens in Kota Damansara, Tropicana Heights in Kajang and Tropicana Metropark in Subang Jaya, as well as Tropicana Danga Bay in the Iskandar Region in Johor and gain from a land sale located in the Klang Valley.

“The marketing strategy for 2015 will be to vary and adapt launches to suit market demand – incorporating higher components of landed properties.

“The group will focus on projects in the central and northern regions for 2015, where the markets are more resilient,” it said.

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MRCB to launch four projects with RM1.2b GDV

Ann (right) speaking to reporters after the AGM and EGM. Looking on is chief operating officer Kwan Joon Hoe.

Ann (right) speaking to reporters after the AGM and EGM. Looking on is chief operating officer Kwan Joon Hoe.

KUALA LUMPUR: Malaysian Resources Corp Bhd (MRCB) has RM1.2bil worth of projects lined up for the financial year ending Dec 31, 2015.

Chief financial officer Ann Wan Tee said on Monday the company will be launching four to five projects this year with about RM1.2bil in gross development value (GDV).

 “The immediate one which will probably be done by June is The Grid at Kia Peng. For that, the GDV is about RM400mil,” he said after MRCB’s shareholders meetings.

He added MRCB hopes to achieve 70% of sales from the GDV this year.
“We always target for at least 70% for the units available,” he said.

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Sunway to develop mixed project with RM1.8bil GDV near Sg Way FTZ

PETALING JAYA: Sunway Bhd plans to develop 16.99 acres next to Western Digital in the Sungai Way Free Trade Zone, Petaling Jaya, into service apartments and retail shops with a total gross development value of RM1.8bil.

Sunway bought the various parcels of land on Monday via indirect unit Sunway Dimension Stones Sdn Bhd for RM286mil. The land is close to Sunway’s flagship development is boosting its land bank close to its flagship development Sunway township by buying 16.99 acres worth RM286mil.

“The first launch is expected to be in financial year 2016 over a development period of approximately five years,” the company said.

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

On the prospects, it said: “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.”

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Rehda: Iskandar Malaysia remains attractive to investors

“The slowdown is short term. It is attributed to the overcautious reaction to the goods and services tax, government property cooling measures and tighter lending conditions by banks,’’ Hoe said in an interview.

JOHOR BARU: The property market in Iskandar Malaysia remains attractive for many developers, despite the recent slowdown in sales, as investors are still optimistic on the long term growth prospects of the economic region here.

Johor Real Estate and Housing Developers Association (Rehda) branch chairman Hoe Mee Ling said as far as the fundamentals remained strong, Iskandar Malaysia would continue to attract interest from domestic and foreign investors.

“The slowdown is short term. It is attributed to the overcautious reaction to the goods and services tax, government property cooling measures and tighter lending conditions by banks,’’ Hoe said in an interview.

The latest investment figure released by the Iskandar Regional Development Authority (Irda) last week reflected the confidence level amongst investors in the region.

According to Irda’s statistics, from end-2006 to March 31, Iskandar Malaysia had received RM166.10bil in total cumulative committed investments from RM158.13bil as of Dec 31, 2014.

Hoe was commenting on National Property Information Centre (Napic) data which showed that in the fourth-quarter of last year, transactions in Iskandar Malaysia plunged 33% compared with the third-quarter of 2014.

A Maybank Investment Bank report on the Napic data showed that property prices in Johor had weakened by 1% quarter-on-quarter compared with the national average of a fall of 0.2%. Prices of property in Kuala Lumpur were down 0.9%, Selangor (-0.1%) and Penang (-0.3%).

“With developments in economic activities and catalytic projects moving in tandem with the property sector, we will see more sustainable demand in Iskandar Malaysia in the long-term,’’ said Hoe.

She pointed out that the progress of property investments here had outweighed other sectors thus creating a mismatch between supply and demand of property in the short term.

“The acceleration of other sectors such as services, tourism, healthcare, manufacturing, logistics and creative industries will bridge the gap,’’ she said.

Foreign developers were targeting a different segment compared with local developers, supplying properties to buyers from their home country and foreigners especially Singaporeans.

“This should not create anxiety over the oversupply situation and the performance of the market as a whole,’’ added Hoe.

KGV International Property Consultants (M) Sdn Bhd director Samuel Tan Wee Cheng concurred with Hoe that the slowdown was a short-term situation and Iskandar Malaysia would continue to attract investors.

“Iskandar Malaysia remains attractive due to its proximity to Singapore and it is more viable compared with other economic growth corridors in the country,’’ he said.

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