Bandar Malaysia JV secures funding

KUALA LUMPUR: The Bandar Malaysia Fund will accelerate the development of the major city centre project, which has a gross development value of RM200bil and will be built over 15 to 25 years, according to Iskandar Waterfront Holdings Sdn Bhd (IWH) group executive vice-chairman Tan Sri Lim Kang Hoo.

A consortium comprising four local banks and four international banks with a combined asset base exceeding US$13 trillion has set up the new fund to finance the development of the Bandar Malaysia project in the southern fringes of the capital’s central business district.

“The consortium will provide funding for buildings, infrastructure, hotels and anything else in Bandar Malaysia. Our partners have already outlined all the financial needs for each phase of the project,” he told reporters after a signing ceremony for the Bandar Malaysia project here.

The Bandar Malaysia fund, which will finance development and construction works, is backed by some of the largest banks in the world. Participating international banks include the Bank of China, Industrial and Commercial Bank of China, China Construction Bank, and Hong Kong and Shanghai Banking Corp.

The local banking groups backing the fund include CIMB Group Holdings Bhd, Malayan Banking Bhd, RHB Capital Bhd and Affin Bank Bhd.

According to Lim, the first phase of development comprising some 100 acres will include the construction of Mass Rapid Transit (MRT) lines near the old Sungai Besi Air Force runway area. The development for the phase would take five years to complete.

He added that architectural or construction works relating to the venture would be done on an open tender basis to give local contractors a fair chance to participate.

The creation of the fund was one of three key agreements that were signed yesterday pertaining to Bandar Malaysia, planned to become a premier mixed-use transport-oriented development in the heart of Kuala Lumpur.

The second agreement involved a shareholders’ agreement between Minister of Finance Inc and IWH-CREC Sdn Bhd (ICSB) to regulate their relationship in the joint-venture (JV) company.

ICSB, a 60:40 JV between IWH and China Railway Engineering Corp (CREC), would be spearheading the project.

On March 21, ICSB had announced a US$2bil investment by CREC to build its regional centre in Bandar Malaysia.

The third agreement involved a memorandum of understanding with Malaysian Resources Corp Bhd (MRCB) setting up a JV with Bandar Malaysia Sdn Bhd for the construction of the Bandar Malaysia terminal.

The JV will design, develop and construct a mixed-use integrated transport terminal spanning an area of 60 acres.

“The value of the project to be undertaken by MRCB has not been determined. The focus of the MRCB-led consortium will just be on building the integrated terminal to accommodate the future high-speed rail lines, MRT, Express Rail Link and others,” Lim pointed out.

To a question on whether IWH would undertake an initial public offering in the near future, Lim said the company was in no hurry to do so.

“We are ready for that (listing), but our shareholders will still have to decide on the right time to do so. Bandar Malaysia will be part of IWH’s assets if we were to list,” he said.

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SP Setia to launch third project in Melbourne – Maison Carnegie

Called Maison Carnegie, the residential project would have a gross development value (GDV) of A$32mil and would be completed towards the end of 2017, explained Choong Kai Wai (inset pic), the chief executive officer of S P Setia Australia.(Premium development: An artist’s impression of Maison Carnegie. )

PETALING JAYA: SP Setia Bhd’s third property launch in Melbourne, Australia, is being brought to the market just six months after the developer acquired the land there for A$6.68mil.

Called Maison Carnegie, the residential project would have a gross development value (GDV) of A$32mil and would be completed towards the end of 2017, explained Choong Kai Wai (pic), the chief executive officer of S P Setia Australia.

Made up of 48 affordable luxury units in a low density of four-storied apartments, the properties are being priced at an average price of A$667,225.

Choong said: “This is a premium development and is being competitively priced from A$452,000. This is an appealing price, as the medium house prices here are already more than A$1.2mil”.

Carnegie is an established residential location in south-east Melbourne, located 12km from the city’s central business district (CBD).

Speaking from Melbourne where he is based, Choong said: “Carnegie is also close to the rail network, has good amenities and is within food and retail precints and schools. There is also the Caulfield campus of Monash University and the Chadstone shopping mall, which is Australia’s largest. The value in this area will appreciate and this will be a key driver for buyers to invest here.”

The key target market for the project, according to Choong, will be local buyers, mainly first home buyers. “They will be attracted to the lower entry price point, given the high median house prices nearby. Another market will be the traditional “down-sizers” moving from their suburban residence to an apartment,” said Choong.

Also targeted are young professionals and university students with “well-heeled parents” and foreign buyers seeking a “safe-haven investment” and looking to capitalise on Melbourne’s strong population growth.

SP Setia will be doing a special preview for existing SP Setia customers and Malaysians, while the launch in Melbourne will be on Aug 6. “There is a new stamp duty surcharge of 7% which will come into effect from July 1, and we would like the Malaysian purchasers to beat this deadline,” he added.

Maison Carnegie marks SP Setia’s third project in Melbourne, following the success of its two luxury apartment developments Fulton Lane and Parque, which were fully sold out.

SP Setia officials had previously said that Australia remained a crucial part of its growth strategy and that it as a developer is becoming increasingly familiar with the Melbourne market. The company has also acquired a 1.02-acre plot of land in the east end of Melbourne’s CBD for A$101mil and another smaller piece in Prahran, south-east Melbourne, for A$10mil.

It has been reported that the latest CBD purchase will be developed as a mixed development with an estimated GDV of A$640mil and is slated to be launched by the second half of 2017. The Prahran project will have 47 suburban apartment units.

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Mah Sing seeks JV with Govt to build affordable homes

Q&A session: Leong (centre) with executive director of corporate and investment Datuk Steven Ng Poh Seng (left) and CEO & executive director Ng Chai Yong briefing reporters after the company’s AGM.

KUALA LUMPUR: Mah Sing Group is currently in talks with the Government with the view of having a tie-up as it looks to further expand its affordable homes portfolio.

Managing director Tan Sri Leong Hoy Kum said the group is looking for more land acquisition and joint venture deals as the property developer was currently sitting on a RM1.1bil cash pile and net gearing of 0.09 times.

He said that the group is currently in discussions to work together with the Government but nothing has been confirmed at the moment.

He added that Mah Sing’s key focus is on affordable housing, and is planning for more products that would suit the mass market.

“The Government has a lot of land so basically it is ideal at this current point as it will benefit both parties,” he said in a media briefing after the group’s annual general meeting yesterday.

Mah Sing is currently looking for land in Greater KL, Klang Valley, Iskandar Malaysia and Seberang Prai and is not looking to venture outside of Malaysia.

“Malaysia will still be the best place for us,” Leong said.

Mah Sing currently has 46 development projects under its belt with 35 already in various stages of development.

“We currently have 2,522ha of existing land bank, which will keep us busy for the next eight years,” Leong added.

The group is intensifying efforts to reach its sales target of RM2.3bil with more upcoming launches in the second half of the year.

“We expect our upcoming launches this year to further add to our sales target. The second half of the year will be an important period and we are up for the challenge,” he said.

He said that Mah Sing’s upcoming launches are receiving good responses from the public and has recorded 4.5 times oversubscription for Cerrado in Bangi as well as Feringghi Residence 2 in Penang.

Commenting on the performance of the group in the first quarter, Leong said that despite a shorter working quarter due to the long festive season, the group has achieved property sales of RM536mil up to Apr 30, 2016.

The group also paid a minimum 40% of net profit as dividend for the 10th consecutive year.

Shareholders also approved a number of resolutions, among them the first and final single-tier dividend of 6.5 sen per ordinary share of 50 sen each in respect of the financial year ended Dec 31, 2015 which translates to an attractive dividend yield of about 4.5%.

As at March 31, 2016, the group’s remaining gross development value and unbilled sales stands at about RM32.26bil.

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Googolplex aims RM3bil sales

PETALING JAYA: Googolplex Properties Sdn Bhd aimed to achieve RM3 billion sales this year, after a prosperous 2015 which sees the company hitting RM1.3 billion sales.

The company headquarter at Jaya One recorded top sales among the seven branches within Peninsular Malaysia, said group chief executive director Christopher Liang in a statement.

Googolplex has established seven branches at Kota Damansara, Seri Kembangan, Ipoh, Kuantan, Johor Bahru and Malacca within the past year.

The local properties sales agency recently held its annual dinner and award night on June 18.

The award categories included One to Five Star Distinction Award, Top Recruiter Award, Top Personal Sales Award, Top Manager Award and Top Branch of the Year Award.

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Googolplex aims RM3bil sales

PETALING JAYA: Googolplex Properties Sdn Bhd aimed to achieve RM3 billion sales this year, after a prosperous 2015 which sees the company hitting RM1.3 billion sales.

The company headquarter at Jaya One recorded top sales among the seven branches within Peninsular Malaysia, said group chief executive director Christopher Liang in a statement.

Googolplex has established seven branches at Kota Damansara, Seri Kembangan, Ipoh, Kuantan, Johor Bahru and Malacca within the past year.

The local properties sales agency recently held its annual dinner and award night on June 18.

The award categories included One to Five Star Distinction Award, Top Recruiter Award, Top Personal Sales Award, Top Manager Award and Top Branch of the Year Award.

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E&O’s Tamarind property project launch this weekend

Tamarind project: Lau showing the scale model of the RM900mil Tamarind project at E&O’s showroom in Seri Tanjung Pinang.

GEORGE TOWN: Eastern & Oriental Bhd (E&O) will release for registration the second tower of its RM900mil Tamarind project this weekend at its show gallery in Seri Tanjung Pinang, Tanjung Tokong.

E&O marketing and sales general manager (Penang) Christina Lau said the first tower block had registered a 90% take-up rate since its soft launch in February, prompting E&O to open the second block for registration on June 20 and 21.

The Tamarind project will also be officially launched this weekend.

“More than 400 people have registered with us to take up the first block,” said Lau.

“The successful sale of the first block is due to the distinctive E&O brand and the Tamarind’s attractive pricing.

“Selling from RM600,000 per three-bedroom unit of 1,047 sq ft, the Tamarind is definitely a good entry price for young professionals or new homeowners to own an aspirational property by E&O.

“The Tamarind showcases unique facilities to cater to the lifestyle of its residents including a private one-acre waterscape of beach and free-form swimming and wading pools for the family to enjoy,” added Lau.

She said the Tamarind was one of the most sought after address in Penang as it had easy access in Seri Tanjung Pinang to the Straits Quay retail marina, Tesco hypermarket, Straits Quay Convention Centre, Straits Green Public Park, Penang Performing Arts Centre and the 1.6 km seafront promenade.

Located on 6.9 acres, the Tamarind features two blocks of 33 storeys, comprising 1,104 units with three-bedrooms and two bathrooms.

Lau said E&O had also partnered a renowned home furnishing specialist to collaborate on the interior design of its show unit.

“Ikea provides all the furnishings of the show unit. This is the first time a Malaysian developer has worked with IKEA to set up the show units for a project,” she said.

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Agreement signed to develop tech park in Seberang Prai

Industrial aspirations: Rosli (right) showing the plan of the area in Byram/Changkat in south Seberang Prai, which will be developed into a high-tech industrial park for small and medium-sized enterprises. With him are Mohd Bakke (left) and Lim. The entire project will cover just over 2,000ha in Seberang Prai.

SIME DARBY Property (Utara) Sdn Bhd and Penang Development Corporation (PDC) are set to develop a high-tech industrial park in south Seberang Prai for small and medium-sized enterprises (SME).

The project is expected to make south Seberang Prai an economic growth centre in Penang, in line with the state government’s plans.

Sime Darby Property signed a memorandum of understanding on the project with PDC at the end of last month.

Chief Minister Lim Guan Eng said the signing marks an important milestone as it symbolises the cooperation and synergy between the Sime Darby and the state’s development agency, for the development of the agricultural area in Byram and Changkat in south Seberang Prai as an industrial park.

He said the collaboration was in line with the state’s emphasis on promoting industrial development and small and medium-sized industries.

“Sime Darby’s plans for developing the land is very much in line with the state government’s aspirations to enhance SMEs,” he said, adding that the Sime Darby SME High-Tech Park will have an estimated gross development value of RM1.8bil.

He noted that under the agreement, both parties would formulate a master plan that was mutually agreed upon.

Under the Byram/Changkat Master Plan, Sime Darby will develop 376.3ha (929.8 acres) of land for SMEs, while PDC will develop 1,625.8ha for heavy industries, SMEs and mixed development.

“Each party is responsible for the environmental impact assessment for their portion of the project,” he told a press conference in Komtar.

Lim added that InvestPenang, the state’s investment promotion agency, would promote Sime Darby and PDC’s portions of the project, including screening companies interested in being located in the park.

Sime Darby Bhd president and group chief executive Tan Sri Mohd Bakke Salleh said the company had long realised south Seberang Prai’s potential as a major industrial area.

“We are confident we will witness the growth of this area in the next eight years. That is why we applied last year to rezone three plots of land in Byram Estate, measuring 376.3ha in total, into industrial land from agricultural land.

“This development will definitely have a positive effect for the area and other sectors of the economy, including housing and hospitality, which will benefit Penang as a whole.

“But most importantly, it will provide more jobs in which new skill sets will be developed,” he added.

Sime Darby Property acting managing director Datuk Jauhari Hamidi, Sime Darby Property senior vice-president Mohd Salem Kailany, PDC general manager Datuk Rosli Jaafar and PDC deputy general manager Chang Wing Mow signed the MoU, witnessed by Mohd Bakke and Lim.

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