NewsSP Setia to Buy RM1bil Worth of Land in Klang Valley, Penang and Iskandar Malaysia Yearly
Extract from The Star (28/05/2012)
ST PETERSBURG (Russia): SP Setia Bhd is allocating RM1bil yearly to acquire new land for future development in the Klang Valley, Penang and Iskandar Malaysia.
President and chief executive officer Tan Sri Liew Kee Sin said replenishing its landbank in the shortest time possible would place the company in a better position compared with other developers.
He said the move was vital as the company would be able to continually launch new projects as the takeup rate for its properties was good.
“Sufficient landbank is the life-line for us (developers) without which we could not properly plan our future projects,” Liew said after SP Setia's award winning development Setia Eco Gardens in Iskandar Malaysia bagged the FIABCI Prix d'Excellence award at a ceremony held here recently.
- Created on Monday, 28 May 2012 10:45
Renewed Interest Seen in M-REITs
Extract from The Star (28/05/2012)
PETALING JAYA: The continued volatility in the global stock markets is expected to generate renewed interest in local real estate investment trusts (M-REITs) in the medium term, Malaysian REIT Managers Association (MRMA) chairman Stewart LaBrooy said.
With stock markets expected to be in for a correction, he said the narrow trading bands of M-REITs would absolve them from the shocks in the global markets.
“In the current volatile global environment, we have been witnessing a flight of capital to dividend stocks with low beta, such as real estate investment trusts. As investors flee the equity markets, M-REITs have seen their stock prices rising to new highs with a number of them providing their unitholders with double-digit returns in 2011. We believe we should also see strong returns for 2012,” he told StarBiz.
Labrooy said the M-REIT market's liquidity and depth would improve with new REIT listings like the upcoming Mid Valley Megamall and Gardens REIT by IGB (IGB REIT).
- Created on Monday, 28 May 2012 10:00
Mixed Views on Land Acquisition in a Cooler Market
Extract from The Star (28/05/2012)
PETALING JAYA: Research analysts and property consultants have mixed views about developers that have been buying sizeable parcels of land recently, as the real estate market has slowed down and prices are relatively reasonable.
“It is a good time to acquire land when the market is slow. Some property developers may just be able to get a bargain price for their purchases,” said property consultancy CB Richard Ellis (M) Sdn Bhd executive director Paul Khong.
Khong told StarBiz via e-mail that real estate sellers would also be more realistic concerning prices, as there were not too many buyers around.
He pointed out that the property sector was moving slowly back to a “buyer's market” and the principle of “cash is king” would rule again.
- Created on Monday, 28 May 2012 09:37
Jaya33 Cybercentre Rowers Ready Soon
Extract from The Star (28/05/2012)
PETALING JAYA: The developer of Jaya 33 will be offering for lease two new office towers in a couple of months. Towers 4 and 5, built at a cost of about RM200mil, will be connected to the existing Jaya33 block with a bridge for cars and pedestrians.
Its marketing director L.C. Toh said the two blocks, known as Jaya33 Cybercentre, had just received its Multimedia Super Corridor (MSC) status and boasted of several unique features. The nearest MSC-status office premises is First Avenue in Bandar Utama, Petaling Jaya.
Toh said the new blocks offered the largest commercial floor space at 19,000 sq ft per floor compared to the conventional 8,000-10,000 sq ft. This will cater to the increasingly popular open office plan concept. The floor interior is laid out to house more people and to improve space efficiency from the conventional 100 sq ft per person to 75 sq ft per person.
The floor design also incorporates additional space to accommodate any extra mechanical and electrical requirements for telecommunications and computer cabling.
- Created on Monday, 28 May 2012 09:19
MPHB Not Planning to Go Big in Real Estate
Extract from Business Times (28/05/2012)
KUALA LUMPUR: Multi-Purpose Holdings Bhd (MPHB), a gaming outfit, have no plans to go big in real estate but will continue its joint venture development projects with Bandar Raya Developments Bhd (BRDB).
The joint venture with property developer BRDB can easily generate more than RM4.5 billion in gross development value (GDV).
Both companies are planning to jointly develop 268ha in Mimaland (Gombak, Selangor), Rawang and Penang.
MPHB director T. Vijeyaratnam said the group would not hive off the joint venture with BRDB as part of its on-going rationalisation plan.
- Created on Monday, 28 May 2012 09:00
UEM CEO: Nusajaya can be considered as the UN of Johor
Extract from The Star (26/05/2012)
UEM Land Holdings Bhd does not limit itself to Singaporean property buyers and investors when it comes to its development projects in Nusajaya.
Managing director and chief executive officer Datuk Wan Abdullah Wan Ibrahim says although Singaporeans always remain important to the company, it is open to all other nationalities.
“In fact, Singaporeans are among the 50 nationalities who are buyers for our residential properties in Nusajaya,’’ he tells StarBizWeek.
Wan Abdullah says Nusajaya can be considered as the “United Nations of Johor” due to the large presence of foreign property buyers in the development zone.
- Created on Monday, 28 May 2012 08:32
Continuous Improvement Needed for Developers to Remain Competitive
Extract from The Star (5/26/2012)
FIABCI MALAYSIA is urging local property developers to “raise the bar” in order to remain competitive at the annual FIABCI Prix d’Excellence Awards, which comprises the best of the best from around the world.
“The Malaysian real estate projects are some of the world’s best in the true sense. (However), the competition will get tougher each year as more and more countries enter the competition with their own national winners,” FIABCI Malaysia president Yeow Thit Sang said recently at an appreciation dinner for Malaysian developers that were honoured at this year’s FIABCI Prix d’Excellence Awards.
Yeow however commended the Malaysian companies that were recognised at this year’s Prix d’Excellence Awards.
“There is total transparency and independence in the judging process. None of the 47 judges knew who was marking which project. There was no comparison of opinion between any of them. All the marks were given independently,” he says.
- Created on Monday, 28 May 2012 08:00
Look at the Fine Print in Guaranteed Rental Returns
Extract from The Star (26/05/2012)
CALL them what you like leasebacks, buy-to-let, cash back, own-for-free developers have come up with creative plans to woo investors with guaranteed rental returns (GRRs) on yet-to-be-built properties.
Developers would agree to pay buyers rentals ranging from 8% to 12% per annum or a proportion of the purchase price for a certain length of time.
This kind of purchase, which has become increasingly common judging from the press advertisements, sounds enticing to investors who do not want the trouble of managing their own investments. You buy the property, and you get the rental returns thrown in.
While GRRs could be very attractive, investors need to know that the scheme is not as simple as it seems, much like ads that appeal to our desire to lose weight quickly, get rich fast or strike the lottery.
- Created on Monday, 28 May 2012 07:24
Green Developers to be Rewarded
Extract from The Star (26/05/2012)
THE Kuala Lumpur City Hall (DBKL) is planning a incentive scheme to reward developers to design and construct green and sustainable buildings.
Mayor Tan Sri Ahmad Fuad Ismail said DBKL was still in talks with the Federal Territories and Urban Wellbeing Ministry to implement the scheme to recognise and reward developers who construct buildings that could conserve energy and water, provide a healthier indoor environment, better connectivity to public transport as well as adopt recycling and green programmes.
Ahmad Fuad said the incentives could be in the form of reduction in fees paid to DBKL.
“We are still developing a mechanism for the scheme. Reduction in development charges and assessment fees are just some of the incentives that can be offered to developers and building owners.
- Created on Monday, 28 May 2012 07:14
WCT Plans Two More Malls
Extract from The Star (25/05/2012)
PETALING JAYA: WCT Bhd plans to add two more shopping malls to its portfolio to create a steady stream of income to the group.
WCT's maiden retail project, AEON Bukit Tinggi Shopping Centre, was opened in Klang in 2007 and is currently leased to retailer Aeon Co Bhd while its second, the Paradigm Mall, was launched yesterday.
Executive director Choe Kai Keong said WCT's third mall, at KL International Airport 2 (KLIA2) integrated complex, was targeted to be opened by April next year.
“We will be managing the 350,000-sq-ft shopping mall ourselves. Meanwhile, the fourth mall will be part of a 60-acre mixed development in Overseas Union Garden with an expected total gross development value of RM4bil.
- Created on Friday, 25 May 2012 09:47