Big boost to Putrajaya Perdana

The new controlling shareholder of construction firm Putrajaya Perdana Bhd (PPB) has bold plans for the company.

"It is our aim to generate no less than US$1billion [RM3.4 billion] in new businesses for PPB from Abu Dhabi, Kuwait and Malaysia in the near term," says Yousif Mana Al Otaiba, director of international affairs at the Abu Dhabi Crown Prince's Court, in an emailed reply to The Edge.
Yousif is one of the shareholders in Abu Dhabi-Kuwait-Malaysia Investment Corp (ADKM Investment), which controls a 51% stake in Swan Symphony Sdn Bhd (Australian-based Autron Investment Co Ltd owns the remaining 49% of Swan Symphony).

Swan Symphony, led by Yousif and associates, is acquiring a 50.6% stake in PPB from Eastern & Oriental Bhd for RM199 million or RM2.90 a share. The exercise will trigger a mandatory general offer for the remaining PPB shares not owned by Swan Symphony, but Yousif says the intention is to keep PPB listed.

"We want to keep it listed. This is to continue to maintain the current level of transparency and corporate governance. More importantly, we want to offer the opportunity for other investors to ride the upside with PPB," he says.

PPB's current construction order book stands at about RM2.2 billion, according to Yousif. He says Swan Symphony would like to play the role of an active investor in PPB.

"We believe that the influence of Swan Symphony's shareholders, along with the strong execution abilities of PPB management, will put PPB in a pole position to take on any projects or contracts that will emerge from the Iskandar Development Region (IDR) and other economic zones in the near future."

The agreement that PPB has recently entered with Aldar Properties PJSC of Abu Dhabi relating to the development of the IDR project has set the stage for further cooperation, which could include PPB undertaking projects in Abu Dhabi. The cooperation between Aldar and PPB could also be used as a template for investments and projects in other countries, says Yousif.

Aldar, which is the master developer for 2,230 acres in IDR known as Node 1, owns over 34 million sq m of land at strategic locations throughout Abu Dhabi, with development projects worth more than US$60 billion.

Thus, Swan Symphony will tap its vast network in the Middle East to bring PPB into these markets and not just focus on Malaysia.

"With the backing of influential Middle Eastern investors in Swan Symphony, we will seek to promote PPB as the vehicle of choice for Middle Eastern and other investors who are keen to participate in the exciting growth opportunities in Abu Dhabi, Kuwait, Malaysia and other countries," adds Yousif.

The entry of Swan Symphony into PPB will transform the company from its current form as a pure construction outfit.

"It is the common goal of PPB management and Swan Symphony to move PPB up the real estate value chain and venture into property development (either by itself or through joint ventures with blue-chip partners), and continue to expand in the area of energy efficiency buildings with an initial focus on Abu Dhabi, Kuwait and Malaysia," says Yousif.

With the backing of strong shareholders, PPB will be able to take on massive landmark projects that might have seemed daunting previously.

"Swan Symphony is backed by a group of prominent investors with ready access to capital. Besides financial muscle, we will generate significant deals in Malaysia and Middle East for PPB. The size and structure of capital necessary for undertaking future landmark projects will be jointly determined by the management, board of directors and shareholders of PPB. Swan Symphony's shareholders are ready to support the growth of PPB and elevate PPB to the next level," says Yousif.

On why Swan Symphony has chosen PPB as the vehicle to enter Malaysia and potentially become the springboard to the Middle East, Yousif says: "I think the question should be: Why Malaysia? Malaysia has a special place in the eyes of Middle East investors, given our cultural and trading links established over centuries.

In the past few years, there has been a reallocation of Middle East liquidity to Asia from traditional markets such as Europe and the US. The shareholders of Swan Symphony have also been a part of this trend, and we identified Malaysia as the focal point of our investments in Asia."

"We believe that the macro-economic fundamentals of Malaysia are solid and are also impressed with some of the development projects announced by the government. These projects will generate significant businesses and opportunities in the medium and long term."

"Having picked Malaysia, our next goal was to identify solid, well-run emerging companies with proven track record to help us tap the economic growth of Malaysia and the Middle East.

"We have researched deeply into PPB and concluded that it scores strongly in all categories. Also, we believe that it can achieve even greater success with the business contacts of Swan Symphony shareholders," he says.

Article post on 1 Oct'07
By The EDGE (By Siow Chen Ming)

A change in space rejuvenates outlet

By The Star

In recent years, stand-alone restaurants have been mushrooming along Jalan Dungun in Bukit Damansara and these restaurants have been generally well received by nearby residents.

These restaurants are appealing be-cause they provide privacy and exclusivity without requiring any formal dress code. The restaurants also have their own inherent personality that is the result of a blend of the exterior and interior, lending a charming ambience to the whole set-up.

Another plus point is the possibility of extended hours, where patrons can appeal for a dinner to be extended well past closing hour to round off a party with a light supper before bidding final goodbyes.

One such restaurant is The Courtyard Garden, a contemporary restaurant in a resort setting.

Spacious: There is a warm ambience that can be found throughout the outlet.

Recently bought over by a new company, The Courtyard Garden has been rejuvenated with an enhanced menu and a change in space usage, all adding to the charming ambience.

The extended space now allows for a terrace lounge, additional private rooms, two bar counters and a glass-fronted display wine cellar.

Other amenities add to the aesthetic appeal including air mist devices, more air-conditioning, plasma screen at strategic corners and a state-of-the-art sound system. In short, the restaurant now delivers an all-out sensory experience that caters to all five senses.

The two-storey building is also located on spacious grounds, providing ample parking for patrons.

Comfortable: The Lounge offers a more casual dining experience to patrons.

As patrons enter through the timber-panelled entrance gates, an entrance foyer designed to heighten the feeling of arrival will greet them. A generous amount of space has been allocated for the foyer and a flight of pebbled stones leads towards the restaurant's reception area.

From the reception area, patrons have access to the indoor dining area of the Long Bar.

The Long Bar is a popular spot for Sun-day family gatherings and is great for interaction. Located along a terrace lined with dining tables, the Long Bar also sports plasma screens to complete the area.

This is one of the new additions to the restaurant, allowing patrons the choice of Lounge or Terrace dining. I enjoyed the terrace, as it was cosy and inviting, encouraging patrons to relax and unwind, soaking in Mother Nature, which surrounds it.

Upstairs, the owners have kept it simple and reserved the space for two private rooms. The larger one can comfortably seat about 20 people while the smaller on caters to about 10.

Cozy: Even the silverware and the table decorations have been chosen to blend in with the overall feel of the outlet.

Both rooms come complete with plasma screens and Courtyard Garden has actually used them for karaoke functions in the past.

While dining may be the main focus of the outlet, the private rooms also lend themselves perfectly for meetings and seminars, when the rooms can be tailored to fit more people in. Projectors are also available.

Apart from keeping in touch with its customers needs, the new management has upgraded the restaurant's facilities to five star standards, allowing them to cater to everything from individual diners to large parties and events, all without compromising personalised service, efficiency, quality and attention to detail.

The Courtyard Garden is located at 10, Jalan Dungun, Bukit Damansara.

By Catherine Lai, a trained Interior Con-sultant, reviews interesting commercial space and can be reached at esca@tm.net.my.fnb@corushotelkl.com

Reading a REIT statement

By New Straits Times

Just bought yourself some shares in a Real Estate Investment Trust or REIT? Congratulations on taking that first step into what promises to be a rewarding world.

Now comes stage two: How to read a REIT financial statement.

Sometimes an onerous task, especially when it is accompanied by a thick report, you can stay on top if you keep an eye on some key metrics which will give you an inkling of future prospects.

Gross revenues

This is the first item in a REIT statement.

An aggregate of the total income flowing into your trust, it comprises the rental income received by the investment properties as well as car-park fees and income derived from additional charges levied on tenants.

Compare this amount with the previous corresponding period to see just how your REIT has performed. Since most of them in the country are in a sharp growth mode, huge jumps in revenue should come as no surprise.

Property expenses

Here, all the expenses incurred to manage the properties are totalled, and include assessments, utilities charges, service contracts, maintenance and security costs as well as property management fees.

Deducting this item from the gross revenue provides the nett rental income received from the properties in your REIT.

Do a mental calculation to give an estimate of the growth in rental income, and to see if they are in line with general trends.

Manager's fees

This is the second biggest expense in the REIT statement.

Paid to the REIT manager, it is generally made up of four components: Basic fee; performance fee benchmarked against an index; acquisition fee; and disposal fee.

The latter two are a percentage of the value of the properties acquired or disposed of during the period.

Expect this amount to be on an uptrend for active REITs.

Borrowings

Found in the balance sheet under liabilities, there is a prescribed limit as to how much REITs can borrow to fund their property purchases.

Under Malaysian guidelines, it should not be more than 50 per cent of the vaue of all assets. For REITs that are way below this level, it mean that their managements are taking a conservative approach and therefore, may not be optimising opportunities.

Too close to the 50 per cent mark, however, could mean that further growth is limited unless more units are issued.

Net asset value (NAV) per unit

The NAV has special significance as it is indicates the income-generating power of a REIT.

Also found in the balance sheet, it is determined by deducting all the liabilities from total assets.

The stock price of your REIT should be more or less in line with the NAV per unit, and any large variation of say 20 per cent or more should cause alarm bells to sound.

If it is higher, then the market could be perceiving that something positive is brewing and is thus pricing it ahead, which warrants investigation.

On the flipside, if it is lower, your REIT could either have been overlooked or has fallen out of favour with investors.

Too many unanswered questions

By New Straits Times

A Penangite recently asked me whether the appearance of more iconic landmarks on Penang Island will bring about the end of the island's heritage status. I had not thought of it that way, but he has a point - it may very well happen.

The reason behind his query: The Penang Global City Centre (PGCC) project.

When completed, Penang will have another 33 high-rise towers each 40 storeys high on what was before a beautiful stretch of green lung.

I have always wondered why the Penang Turf Club sold its prime asset, the 260-acre land at Jalan Batu Gantong that many consider "a veritable goldmine", for a mere RM488 million in 2002.

Friends tell me the sale price works out to just over RM40psf, and even if we exclude a portion of the land that cannot be developed, the price is still low at just over RM60psf.

With the land now rezoned for mixed development, it is now worth anything up to RM300psf, they say.

According to data I gleaned from a local website, it appears that the Penang state government's move to rezone the land began in November 2002. On Nov 25 that year, 78 per cent of the Penang Turf Club members, as vendors, voted at an extraordinary general meeting to sell the land to purchaser Abad Naluri.

On Sept 12, 2007 Prime Minister Datuk Seri Abdullah Ahmad Badawi officially launched PGCC. An official launch, in the people's eyes, means official blessing.

National news agency Bernama quoted the prime minister as saying at the launch that "Penang will emerge as a world-class regional logistics and services hub when the RM25 billion PGCC project in Batu Gantung is completed."

My research shows that the land was alienated to the turf club in the 1930s. It was then zoned as open space, and only a minimal premium was paid.

Subsequently, many attempts to change the use of the land to "mixed development" did not go down well with a large section of the public and as recently as this year, it encountered many protests during the island's 2007 Structure Plan exercise (as provided for under Section 9 of the Town and Country Planning Act 1976).

Three days after PGCC's official launch on Sept 15, a group of concerned NGOs in Penang released a joint press statement opposing the development.

This group consists of the Consumers' Association of Penang (CAP), Sahabat Alam Malaysia (SAM), Penang Heritage Trust (PHT), Malaysian Nature Society (MNS), Citizens for Public Transport (CEPAT) and Aliran Kesedaran Negara (Aliran).

Among other things, the statement said the group "is shocked that the PGCC has been launched even before obtaining all major planning approvals. The government should not have granted fast-track status for the project, seeing that the scale of the development is going to create a drastic impact on the areas of traffic, social and environment on Penang Island."

It then went on to say that several questions "about the manner in which the land was converted from 'open space' to 'mixed development'; about traffic congestion; public consultation; and provision for social housing" have remained unanswered.

The group then set out in explicit detail several "glaring issues" that needed to be answered by the relevant approval authority.

On the issue of traffic congestion the NGOs asserted that "the project is so large that it will affect almost every person in Penang, but there has been very little public consultation".

On the absence of public consultation, they said that during the drawing up of the Penang Structure Plan "public consultation was minimal, perfunctory and the results were entirely ignored".

The NGOs alleged that the mega project "was approved in Putrajaya", while plans "were finalised without any local input, and have now been publicly launched with much fanfare".

Describing it as "a top-down planning of the worst type", the NGOs consider the entire exercise as going "against all principles of participatory democracy."

I will not go so far and describe it in the same way, but to my mind it is certainly against everything that I have learned about "participatory planning".

The expression "participatory planning" is a 2001 development of the old "principle of public engagement" that Malaysia declared it would uphold when it participated in the Earth Summit in Rio, Brazil, in 1992.

On social housing, the six NGOs pointed out that national policy requires all development projects to include "30 per cent lowcost units", and yet "none will be built on the site".

The developer, they claimed, intends to build 6,933 luxury apartments and houses, while the low-cost units will be built "elsewhere."

In view of the the size of the project, the NGOs said, a detailed Environmental Impact Assessment (EIA) report should also be carried out.

I agree with this, and would add a Social Impact Assessment (SIA) report as provided for under subsection (1A), Section 21A of the 1976 Act.

I am told that a team of 60 architects, engineers and technicians from London, New York and Hong Kong have been working on the PGCC for the last four years, apart from a year the principal architect took to research Penang's "culture, history, social patterns and way of life" before actual designing work began.

The architect was quoted as saying, "We have designed the buildings to blend with the surrounding hills and greenery ... they must fit into a carbon-free city scheme."

Opposing this remark, another NGO, Penang Watch, asked, "How can 'zero carbon' be applied to a project that will cause so much social and environmental pollution and destruction"?

Are we, again, merely paying lip service to sustainable development? Will there ever be an end to more iconic towers in Penang Island?

__________________________________________________________________

Salleh Buang is senior advisor of a company specialising in competitive intelligence. He is also active in training and public speaking and can be reached at sallehbuang@hotmail.com

Super prime highrises popular

By New Straits Times

Spanking new super-prime highrise apartments are red hot buys in Hong Kong, thanks to the scarcity of such units in its luxury residential districts.

This is why a unit in the Lodgeon- the-Park project in Mid-levels managed to sell for a mind-blowing HK$1 billion (RM455 million), or HK$11,091psf (RM5,046psf). And in The Legend in Jardine's Lookout tower, a penthouse named "King of the House" was sold in March for HK$128 million (RM58.24 million) or HK$33,300psf (RM15,152psf).

CB Richard Ellis (CBRE) Hong Kong managing director Rick Santos said in the international real estate services report for the first half of 2007 that high-end luxury residential units are being highly sought-after by investors as well as end users who have made huge profits from the stock market.

Developers are frantically trying to diffuse - as well as cash in on - the demand by acquiring land suitable for upscale living.

One of their purchases was a site in Tai Po opened by the HK government that fetched a record HK$6,109psf (RM2,780psf).

In the commercial arena, Santos said in view of the shortage of prime Grade A office stock in HK, foreign institutional funds have widened the scope of assets they would consider acquiring to include not only office space but retail properties in secondtier locations as well.

Among recent purchases was the Mong Kok Computer Centre by Singapore-based Alpha Partners Investment, a property fund of Keppel Land, for HK$750 million (RM341.25 million) or HK$28,846psf (RM13,125psf).

Nevertheless, Santos said the star attraction remains prime office space, due to the escalation in rental and sale values by 10.2 per cent and six per cent respectively in the first half of the year.

Driven by persistent demand from banking and hedge fund tenants for prestigious office space in Central, he said 5,000sq ft in the Two IFC building was rented for a record HK$170psf (RM77.35psf).

Such signings have given foreign companies such as Citigroup Property Investors the confidence to buy two towers of Crocodile House and the adjacent Ananda Tower in Central for HK$1.5 billion (RM682.5 million) for redevelopment purposes.

Santos said he expects the office rental market to be further boosted by the large number of public companies slated for flotation in HK.

In the retail segment, CBRE said supply in the current year comes mainly from three new shopping malls: MegaBox and EMax in Kowloon Bay and Elements at Kowloon Station of the Airport Express.

The first half-year also saw international brands open flagship stores in HK, some with multi-levels located in prime areas.

On the industrial front, it said the launch of the HK-Shenzhen Western Corridor is expected to make a significant impact on the logistics industry and HK's industrial properties.

Hong Kong's never had it so good

By New Straits Times

A decade has passed since the rock that is Hong Kong was formally handed back to China by Britain. And how it's prospered since then.

According to the world's largest real estate services firm CB Richard Ellis (CBRE), there's no where for HK's real estate sector to go but up, thanks mainly to investments from the mainland that are fuelled by "encouraging market conditions".

CBRE Hong Kong managing director Rick Santos said in the company's property market review covering the first half of 2007, the latest wealth management opportunities introduced by the mainland's Qualified Domestic Institutional Investors (QDII) scheme have caused funds to step up their pursuit of equities in the HK stock market, which in turn has created an explosive effect on investment activities.

With high liquidity in the perceived promise of monetary returns, he said many funds have actively expanded their property portfolios.

"The finite supply of premium properties is also attracting substantial interest from buyers who had previously adopted a wait-and-see approach," he pointed out, adding that "the buoyant demand and relatively limited supply of top quality properties will continue to maintain property prices at a relatively high level".

On top of that, Santos said mounting inflationary pressure amid a weak US dollar and renminbi appreciation has made real estate an attractive investment alternative as it will push prices to new levels in the foreseeable future.

These are among the most recent stimuli influencing a region that has for over a century been seen as a world-class investment destination because of its strategic location, well-developed infrastructure and services, free flow of information and low, simple tax system.

As an international financial and business hub, dozens of companies have adopted HK as their base for Asia Pacific operations, causing a huge influx of foreign investment.

This will only get better in the future with China's accession to the World Trade Organisation and the signing and phased implementation of the Closer Economic Partnership Arrangement (Cepa), which is HK's new trade arrangement with China.

On HK's investment market in the first half of 2007, Santos said 96 transactions were registered across all property sectors, worth over HK$27.5 billion (RM12.51 billion).

Of this, local investors accounted for 70.8 per cent while foreigners made up the rest.

CBRE said the residential sector made up 32.9 per cent of the transactions and the office sector, 26.6 per cent.

Make building inspections common practice

By New Straits Times

Faulty piping, rotting panels and cracking walls. These are just some of the many faults that can arise as a result of shoddy workmanship.

For these reasons and more, it is high time building inspection be made a mandatory part of the house purchasing process, say industry watchdogs.

"Buying a house is perhaps the most important and most expensive investment most Malaysians will ever make," said Eastern Regional Organisation for Planning and Human Settlements (Earoph) secretarygeneral Khairiah Talha.

"However, this all too often turns out to become a buyer's biggest nightmare... just because he or she doesn't have the expertise to suss out or foresee inconspicuous defects before signing on the dotted line."

Pointing out that this is as likely to happen in new housing projects delivered under the highly encouraged Build- Then-Sell scheme as it is with purchasing a used unit from the secondary market, she said "building inspections are important because professional inspectors know exactly what to look for".

"They have the trained eye to identify faults disguised by cosmetic improvements, which may be missed by laymen."

According to Khairiah, this is why the country's real estate industry needs to emulate the likes of Singapore, Australia and several European nations that have made pre-purchase building inspection common practice.

In Australia, buildings are even graded based on a professional building inspector's report.

These inspectors are guided by strong codes of ethics that are set by the national Inspection of Building Standards and upheld by regional building inspection institutes.

"It is important to note that home inspectors in Australia are also held accountable for their reports," said Khairiah.

"Buyers are protected by law and insurance indemnity is taken out by the inspectors to safeguard them from any consequences arising from misleading reports... this is the kind of structure I hope can be implemented in our country."

Typically, she said a thorough inspection should pinpoint:
- Structural cracking or deformities on walls, roofs and floors;
- Dampness leading to rotting or unsound structure;
- Damage to timber caused by fungal decay, wood borers, termites or by industrial chemicals;
- Defective plumbing and drainage systems; and
- Superficial repair work.

In addition, the home inspector's report will estimate the cost of remedying any defects found.

ArchiCentre, the building advisory service of the Royal Australian Institute of Architects set up in 1981 to assist home buyers, new home builders and renovators, says in its website (www.archicentre.com.au) that house buyers are often deceived by "cover up jobs aided by DIY products".

Its head Robert Caulfield said many cover-ups are "effective because prospective buyers don't know what to look for, and where".

"They fail to understand cost of these hidden problems... a house that looks perfect the untrained eye may be some hiding some nasty surprises."

Common "weapons of deception" include the use of inferior gap fillers, wall panelling, or newly painted surfaces.

Cover-ups can even take form of strategically placed furniture, potted plants and rugs.

Earoph's Khairiah pointed out that in countries such as Singapore, Australia and the United Kingdom, the job of inspecting buildings typically falls on the shoulders architects, civil and structural engineers, or building surveyors who also have an architectural or engineering degree as well.

Although Malaysia has not made building inspection mandatory, there nevertheless are a few architectural and building survey firms that offer such a service.

However, the use of their inspection service is not widespread and the extent of the checks they conduct is usually limited to a client's specific request.

This is largely because the cost involved can be hefty - especially in the case of large properties and commercial buildings.

An advocate for the wider use of the service is architect and BIS Building Inspection Services principal Akbal Singh Sandhu, who believes the cost of the exercise is one reason why the service is commonly relegated to the "unessential" tray (see sidebar).

But, he says, the money spent "can ultimately save property buyers thousands of ringgit or more".

"House buyers in Malaysia need to be educated about their rights... they have to be made aware of the issues they face, and they have to demand quality for the huge sums of money they are paying for their property," he said.

Akbal, who has to date inspected more than 1,000 buildings around the country, pointed out that "buyers who don't consider defects and shoddy workmanship as important are allowing themselves to be short-changed".

Building surveyors, he explained, can provide the expert eye buyers need when deciding on a property to buy because they are familiar with building by-laws and knowledgeable about various building guidelines.

These range from the specified heights and lengths for staircases to the amount of ventilation a room should have.

Despite the cost issue, Akbal said he is confident the use of building inspection services will grow as the nation becomes more industrialised and the people more sophisticated.

Issues pertaining to quality, he said, have already been making headlines and it is only be a matter of time before buyers "naturally engage professionals for advice before making a major purchase".

Echoing Akbal's sentiments, is Specialised Surveying Solutions Sdn Bhd operations and liaison director Leon Hamid, who said more and more buyers are realising the need for expert help before confirming their purchasing decision.

Since his company was set up in March last year, its clientele has increase from two to eight a month, with inquiries increasing by 20 per cent.

Service users are mostly young professionals and firsttime buyers in their 30s and 40s.

"If you're buying from the secondary market, home inspection is important," advised Hamid.

"It can shed light on the amount you should be prepared to pay for repairs, or even save you from a disastrous purchase.

"If you're buying from the primary market, an inspector's report can be used to hold developers accountable for any shoddy workmanship."

National House Buyers Association (HBA) secretarygeneral Chang Kim Loong agrees that building inspections can save the buyer from unnecessary heartaches.

It can also serve as an effective tool to promote greater accountability among developers, he said, and is willing to put his association behind any move to make building inspection common practice in Malaysia.

"Several parties are lobbying for this... besides HBA, they include the Institute of Surveyors Malaysia," he said.

"Most people are under the mistaken belief that local councils issuing Certificates of Fitness for Occupation or professionals awarding Certificates of Completion and Compliance are able to ferret out defects and shoddy workmanship, but this is not true.

"Their duties are to ensure that no by-law or safety issues have been violated. The local council officers and building professionals are not quality assurance officers, nor do they have that kind of authority.

"The best way to have peace of mind is to engage an independent party to make sure the property you buy will bring pleasure instead of pain."

KL's office market charts upward course

By New Straits Times

One of the surest signs that Kuala Lumpur's commercial sub-sector is alive, vibrant and growing is the performance of its office rental segment.

Here, recent studies show that gross returns are currently a healthy six to 13 per cent per annum, on the back of capital values ranging from RM253psf to RM589psf. And, by the time this year is through, it's going to make the jump past the RM650psf mark, said international commercial real estate firm Cushman & Wakefield (C&W).

In its Asia Pacific Investment Report prepared by the firm in conjunction with the MIPIM Asia real estate conference and exhibition that will be held in Hong Kong next month, C&W said KL's commercial market is on the boil with several new projects taking shape both within and on the fringes of the city that are seeking to satisfy demand.

The consultancy said it also expects the retail sub-sector to continue its upward trajectory, fuelled by the strengthening ringgit, high export growth, increasing confidence in the government's administration, positive stock market performance, political stability and the country's growing number of tourist arrivals from China and the Middle East.

The tourism sector has been the second biggest foreign exchange earner since 2000, the report noted, receiving 17.55 million international travellers with receipts amounting to RM36.27 billion last year, an increase of 6.8 per cent and 13.5 per cent respectively.

In the residential sub-sector, C&W noted that activities have increased since 2002, due to pentup demand for houses following the slowdown in construction activities after the 1997 Asian financial debacle.

It said the high-end residential segment was particularly bullish, due to high levels of interest from foreign buyers, especially from the Middle East, and added that with capital values in the RM250psf to RM1,000psf band, gross returns are expected to be between six and 12 per cent.

However, C&W warned of changes to the scenario, among them the possibility of property price increases by up to 25 per cent due to inflation and the continued shortage of steel bars.

Overall, the report said the country's property market will continue trending higher, and cited the 11 government mega projects in the works worth an estimated RM90 billion as being instrumental in driving the surge.

Other catalysts include the increase in acquisitions by Real Estate Investment Trusts (REITs) and property companies, as well as steps taken by the government to expedite property purchases and to deregulate the industry.

On the state of the Asian property market, C&W describes it as "the world's most exciting today", noting that foreign investments in China are set to increase exponentially as investors begin to feel more comfortable with the republic's investment climate.

Malton going prime in Petaling Jaya

By New Straits Times

Public-listed Malton Bhd is aiming to end the year on a high note with the launch of two major projects in prime locations of Selangor.

The first is a mixed commercial venture that's breaking ground on a 2.63-acre site in Petaling Jaya city's main thoroughfare of Jalan Utara.

Located beside the Tun Hussein Onn Eye Hospital and close to the Armada Hotel, the company said its subsidiary Khuan Choo Property Management Sdn Bhd (KCPM) will develop the site into a cluster of business suites and retail lots in seven-storey blocks.

While the project has yet to be officially named, sources within the company say that the name "VSquare" is being bandied about.

Malton senior sales manager Andrew Goh said the company could launch the project by early December and is already inviting prospective buyers to register their interest.

The first offering, he said, would be business suites at an indicative price of RM480psf.

KCPM's involvement with the site is via a development agreement it entered into with the board of trustees of Lutheran Church in Malaysia and Singapore (LCMS) in October 2003.

Under the terms of the agreement, KCPM will build for the church an 85,000sq ft building costing at least RM12.5 million on 38,000sq ft of land next to the 2.63-acre site.

The developer has 24 months to complete the building, after which LCMS will transfer all its rights to the 2.63-acre site.

Based on the agreement's total consideration of RM19.5 million, it implies that the site is worth RM170psf.

Another undertaking Malton is preparing for launch is a high-end serviced apartment near the Saujana Golf and Country Club in Shah Alam.

Situated next to the Japanese International School and fronting the Subang Airport highway, the 6.02-acre project has been planned to accommodate 360 units in three blocks of 13 storeys.

To be called Amaya Condominiums, Malton's Goh said the project will boast units with the look and feel of semidees and bungalows.

"We're still at the planning stage and will release more details closer to our launch in late December," he said, but indicated starting prices could be in the region of RM500,000.

This would be similar to what another serviced apartment in the area called Hijauan Saujana is tagged at.

Undertaken by Focal Aims Bhd subsidiary, Esquire Corner Sdn Bhd, units of between 1,700sq ft and 4,200sq ft are being offered together with facilities, private lift access and extra storage space on the parking levels from RM600,000.

The developer is also expected to offer a limited number of twoand three-storey penthouses from the RM900,000 mark.

Homedec is back again

By The Star (Post 10Oct'07)

Great ideas and loads of prizes to be won at expo

THE most awaited exhibition for "renovation, redecoration and refurbishment" – HOMEDEC – will be held from Nov 1-4 at the KL Convention Centre from 10am-8pm.

True to its reputation for providing the best platform for home decorating needs in Malaysia, Homedec 07 will offer home-owners the opportunity to discover the latest products and interior trends.

The exhibition will be a one-stop centre for are invaluable tips at the Interior Design Clinics, latest colour concepts at the Nippon Colour Creation Centre and Feng Shui seminars. Besides this, interactive cooking demos will also be held.

Visitors will also be able to catch the extraordinary Fashionable Curtain Fashion Show at the Bagus Curtain Sdn Bhd booth.

One of the highlights of the exhibition is the HOMEDEC Contest. The organisers are giving away prizes such as cash and products worth more than RM50,000 in total value. The Grand Prize is RM10,000 in cash and RM15,000 worth of products by the main sponsor, Bagus Curtain Sdn Bhd. Visitors just need to spend a minimum of RM100 to participate.

Ahmad Suhaime receiving the HOMEDEC contest grand prize from GE Green Sdn Bhd general manager Dickson Niew (centre) while C.I.S. Network Snd Bhd president Vincent Lim looks on. The recent contest was held in conjunction with the HOMEDEC 07 (Special Edition) event at Mid Valley from Aug 30-Sept 2.

As an incentive, those who participate in the contest will automatically qualify for the ‘Purchase & Win’ contest, where there is a chance to win the daily give-away of an LG Pearl Black Series 32-inch LCD TV (LB9, sponsored by LG Electronics (M) Sdn Bhd.

Also, do not miss the Design Fast Forward talk by Eric Leong – Malaysia’s well-known interior designer – on Nov 4 from 10am-4pm at the Plenary Theatre, KL Convention Centre. Touted as the "Grand Finale Talk Show" to wrap up the year 2007 in conjunction with HOMEDEC 2007, Eric will reveal 2008 trends for designs, décor and colours.

This one-day talk is open to all home-owners and professionals, and entry tickets are chargeable at RM88 per person. Goodie bags worth more than RM1,000 each will be given away while stocks last. There is also a chance to win the Lucky Draw Grand Prize for a home makeover for your living room by Eric Leong worth RM50,000.

For details, visit www.homedec.com.my or call 03-79824668.

Properties from a feng shui perspective: Jalan Sultan Ismail

By The Star (by David Goh)

Jalan Sultan Ismail, between the Klang River and Jalan Imbi, is well known and recognised for its row of five-star hotels. By day, it is a busy thoroughfare with several prominent office towers. By night, it is a popular entertainment area.

The road curves slightly and is generally perpendicular to the Klang/Ampang River. This river curves in an embracing fashion and joins the Gombak River at Masjid Jamek to create the main Klang/Gombak River. That means, buildings along Jalan Sultan Ismail that face west or southwest are generally conducive for business and homes.

However, we must also consider the undulating landform in the vicinity. Properties should ideally sit with its back to high land and face lower land. Here, we’re not talking about building on hill slopes.

Any slope exceeding 45 degrees is considered too steep to build and the energy moves too quickly to be beneficial. It can even be harmful.

Yet, developers and the rich continue to insist on erecting buildings in such precarious places, believing that such a unique location and design are prestigious and valuable. They may solve the problem of soil stability with expensive and sophisticated foundations, but this does not mitigate the energy flow.

Concorde Hotel's location has some good points feng shui-wise

WHICH SIDE TO CHOOSE

As we survey Jalan Sultan Ismail, we will find that it passes through Bukit Nanas on its west and the land gradually becomes lower towards the KLCC. Therein lays the dilemma. Buildings on the opposite side of the road may face or be parallel to the river but they face uphill. Businesses then may experience ups and downs.

At the junction of Jalan Sultan Ismail and Jalan Ampang, we find the uncompleted Hyatt Hotel, which remained so for a number of years. It actually could enjoy fantastically good feng shui if its entrance is redesigned to face the river or the mini-confluence just behind Menara Safuan. This way, Bukit Nanas would be at its back, and it would face lowland and a concaving or embracing river.

Most architects will not do that. They prefer the frontage to face the intersection where it is more prominent. Since the project has been suspended, we will not know. At this same intersection, we also find the Renaissance hotel. The Renaissance parallels the downstream river which is a good sign. It also skirts the highland-lowland issue by not facing Bukit Nanas directly. This is conducive for business.

However, we must also mention our concern with regards to the monorail system that runs along Jalan Sultan Ismail: in fact, it is difficult to discuss Jalan Sultan Ismail without interlinking it with the monorail system.


The Renaissance parallels the downstream river which is a good sign

TRAIN TROUBLES

In a previous article, we discussed the possible ramifications of a train system on the fortunes of buildings nearby. Trains moving quickly and periodically create a vacuum and drag in their wake. As energy is dispersed by winds, this artificially created wind has the tendency to suck away and disperse the gentle pool of homogenous energy that collects in the embracing concave arm of a river.

Therefore, buildings that are near a train system may find their good fortune somewhat dampened or subject to fluctuation. Those that are not doing too well may find conditions deteriorating further. Naysayers could pooh-pooh this comment. They may cite economic cycles, market forces, mismanagement and what-have-you as the real reasons for these phenomena. Aren’t these the same reasons they would use for why the wealth of some families would last only a single generation, or why businesses keep changing hands?

We must state clearly here: we are not bashing the monorail. We have nothing against it and believe it serves an important purpose for the general public. We are merely observing the environment and offering an analysis from a feng shui perspective as described by sages.

IT’S JUST A TOUR

Mind you, this is not a feng shui audit either: it is a feng shui tour. No doubt, some of these buildings could have been audited by a feng shui practitioner and remedies were implemented to mitigate any negatives or accentuate the positives. It is difficult to implement “cures” or mitigation for a completed building.

Ideally, geomancy should be included in the planning stage so that everything is optimised by good energy. Once a building is completed, mitigation work is limited: sometimes, it only helps in minimising the bad but does not optimise the good.

The Concorde Hotel and the Hard Rock Café used to be the Merlin Hotel, one of Kuala Lumpur’s earliest hotels. This location has some good points feng shui-wise. It sits at the concave side of Jalan Sultan Ismail. On the other hand, it faces high land and is smack in front of the monorail, factors which could be a concern.

Menara IMC and Menara Prudential are modern office buildings that face the Klang/Gombak River and are parallel to the downstream Ampang River. That is a plus point. This could help mitigate the fact that they are just off the convex side of the road, face high ground and the monorail.

HILLS AND RIVERS

Menara Haw Par on the opposite side has its back to Bukit Nanas, which is a more conducive location. However, it sits just off the convex side of the road, and again, there is the monorail. Next door, the Shangri-La Hotel and UBN Tower have their backs to high ground and face lower ground, which is good, but the buildings do not face the river.

A view of Jalan Sultan Ismail from Wisma Genting

There are a few entertainment outlets here facing Jalan P. Ramlee. Those with their back to the river are not in the most ideal of locations. Their opposite number should do better, if they can mitigate the effects of the monorail. Wisma Tong Ah, located at the junction of Jalan P. Ramlee and Jalan Perak, could do better if its entrance faces Jalan P. Ramlee – and the river.

Its neighbouring buildings, on the other hand, could require more consideration and mitigation. These buildings all sit with the front facing high land and the back on low land (Jalan Perak). They face the convex side of Jalan Sultan Ismail and the monorail to boot. I wonder how businesses fare in such a situation, and whether feng shui mitigation, if taken, has helped.

On the opposite end, there is the impressive Si Khiong Star Mercedes Benz showroom. The story goes that the original construction did not quite meet with feng shui standards. The owners tore down the structure and rebuilt it! Today, the prestigious showroom has two entrances, from Jalan Sultan Ismail and Jalan P. Ramlee.

This way, the back is now on higher ground and the front is lower (Jalan Sultan Ismail). Nonetheless, the second entrance on Jalan P. Ramlee faces the Klang/Ampang River and minimises the monorail’s effect by not facing the tracks.

Jalan Sultan Ismail snakes a bit after this and buildings on the convex side are usually not very conducive compared to the concave side. As mentioned in a previous article, Bangunan MAS has a lot of good feng shui going for it. The rear is higher than the land in front and it sits at the concave side of the road. However, we are concerned about the monorail’s effect, plus the fact that its back is to the Klang/Gombak River and it faces upstream to Klang/Ampang River.

GOOD LOCATION

The Lodge restaurant is actually situated in a very good location. Its back is towards higher ground and it overlooks lower ground. It also faces the embrace of the road where Jalan Raja Chulan joins Jalan Sultan Ismail. As with all other sites we’ve visited, there are plus and minus points in each. For example, in this case, the river is at its back and the monorail’s proximity may negate some of the positives.

The nearby Wisma Genting was covered in a previous article, so we will dispense with it. But isn’t it too close to the monorail as well, you ask? Look closer and you will see a monorail station right in front. What do trains do when they approach a station? They slow down, of course, and this reduces the vacuum and drag impact of the trains. That means buildings very close to stations are spared the powerful effects of the trains.

We can see a similar mitigating effect with Sungei Wang Plaza down the road. Although it is beside the monorail line, there is a station right at the entrance. The location of this station is a boon for commuters and shoppers alike. Thus, it serves a dual purpose: it brings more traffic to the area and reduces the impact of fast-moving trains in its vicinity.

There are several office towers along Jalan Sultan Ismail, between Jalan Raja Chulan and Jalan Bukit Bintang. As you can tell, on one side where Hotel Istana sits, the landform slopes downhill. Alas, most buildings face the other direction.

This can be considered a multiple whammy: buildings facing east have a low rear; their backs are to the Klang/Gombak River; they face upstream of the Klang/Ampang River; they are on a slight convex of the road; and of course, the monorail. Buildings on the opposite are conversely more conducive, except for the monorail.

As to how true this is, I leave to your own observation and conclusion. This is not the power of auto-suggestion: it’s an observation and one can see if reality matches the hypothesis.

You can see for yourself. Have you noticed that along any given road, one side usually prospers while the opposite does not? Do you see this in your part of the neighbourhood?

*This series on feng shui and real estate properties appear courtesy of the Malaysia Institute of Geomancy Sciences (MINGS). David Koh is the founder of MINGS and has been a feng shui master and teacher for the past 35 years.

Zelan banks on repeat performance

By New Straits Times

The RM400 million Hampshire Residences is almost completely sold since its official launch late last year

Fuelled by the response to its Hampshire Residences condominium, Zelan Bhd is developing a second upmarket project in the vicinity of the Kuala Lumpur City Centre (KLCC).

This gives the group, which only recently ventured into development from its mainstay of construction and engineering, the rare distinction of being among the few with more than one project in KL's most prized real estate address.

The new undertaking costing RM169.4 million is the result of a development agreement between its subsidiary, Zelan Development Sdn Bhd, and landowner Masteron Liga Klasik Sdn Bhd.

To be developed on a 25,000sq ft site off Jalan Yap Kwan Seng and along Jalan Lidcol, the project with an expected height of 33 storeys will abut the 388-unit Hampshire Residences, which is slated for completion by December 2008.

Since it was officially launched late last year, almost all the units in Hampshire Residences have been sold, thanks partly to the expertise of one of Zelan's jointventure partners, Singapore property giant CapitaLand Ltd.

For the new venture which is currently pending approvals from the relevant authorities, Zelan could embark on a similar tie-up.

For the financial year ended Jan 31, 2007, Zelan's foray into development contributed only RM30 million or 4.7 per cent to the group's total revenue, but this is likely to increase as more opportunities are sought out.

The group is also venturing abroad: In Bangkok, Thailand, it acquired a long-term lease on a 2.64-acre site, upon which it will build a Grade A office building, while in Hyderabad, India, it will develop luxury villas and condominiums jointly with a local partner.

Pearl of Puchong

By News Straits Times

Latest phase of Mutiara Indah offers feature-rich terraces and bungalows



In the Klang Valley, there are a few locations that can do no wrong - places where buyers will be willing to call home because of its centrality, accessibility and amenities.

Puchong in Selangor is such a place, having matured from its quarrying and estate past over the last two decades to become one of the most sought-after addresses for both first-time owners and upgraders.

Starting out as an area to satisfy basic housing needs, it has steadily evolved to match increasing affluence and expectations, and with the 82-acre Mutiara Indah by Ehsan Armada Sdn Bhd (EASB), buyers can look forward to living in a gated-and-guarded enclave loaded with space and resort-style overtones.

In the latest phase of the RM280 million development situated in the southeast of Puchong town centre, EASB, a subsidiary of public-listed Malton Bhd, has two types of houses available to suit different budgets.

At the sub-RM300,00 mark (from RM291,834 to be exact), it has 145 units of double-storey terraces with standard dimensions of 22ft by 70ft.
Inside, the units will come with four bedrooms inclusive of a private study and walk-in wardrobe in the master bedroom, three bathrooms and separated dry and wet kitchens.

Built-up areas range from 2,089 sq ft for an intermediate to 2,290 sq ft for a corner. With slightly more than twice the budget (from RM662,625), buyers can set their sights on one of the 24 units of two-and-a-half storey link bungalows fashioned from 48 ft by 70 ft of land.

These will accommodate two master bedrooms with premium en-suites and three bedrooms with deluxe en-suites in between 3,487 sq ft and 3,812 sq ft of space.
Buyers will also be entitled to the change of putting a BMW 320i in their car porch.

Every bungalows includes "his-and-hers" wash basins in two bathrooms, a water filtration system, security alarm system, motion detector lights, automated main gate and three-phase power supply.

Aside from the terraces and bungalows, the other components of Mutiara Indah are 186 units of two and two-and-a-half-storey link semi-detached houses, 20 shop-offices, 118 link semidees and 39 superlinks.

Being developed on elevated land, the development is accessible to Kuala Lumpur and Petaling Jaya via the Lebuhraya Damansara-Puchong (LDP), the Shah Alam Expressway, the North-South Central Link and the South Klang Valley Expressway.

Within a 5km radius of it are institutions of higher education, banks, hypermarkets, shopping malls, entertainment outlets and golfing greens, while its neighbours include the ongoing townships of Taman Bukit Puchong, Saujana Puchong and Equine Park.
Cyberjaya and Putrajaya are 15 minutes away.

Mutiara Indah
Type: Two-and-a-half-storey link bungalow
Phases: Phase 2C
Total no.of units: 24
Availability: 24
Dimension /land area: 48 ft x 70 ft
Built-up area/rooms: 3,487 sq ft to 3,812 sq ft / 5 bedrooms
Price range: From RM662,625
Monthly maintenance: NA
Loan repayment: Based on a 90% margin, 7.15% interest repaid over 25 years=RM4,200 monthly
Completion Date: 2009
Developer: Ehsan Armada Sdn Bhd (A subsidiary of Malton Bhd)
Contact: 03-8061 0333
Website: www.malton.com.my

Better value at Bangi

By News Straits Times

Home-hunters with a budget of RM450,000 to spend on a landed property in the Klang Valley with good access and growth potential certainly have a lot of choice. Among their picks: Terraces in Selangor's capital of Shah Alam, the suburbs of Cheras and Ampang ... or a semi-detached unit in Bangi.

Often overlooked - undeservingly - because of its slightly "grey" complexion, Bangi has the location, accessibility and promise to put it in the "must-see" list. And here's where Bandar Seri Putra (BSP) comes into the picture.

BSP's double-storey semidees will offer five bedrooms and four baths.



Situated 10 minutes from the Kuala Lumpur-Seremban Highway's Sungei Besi toll plaza and served by an interchange it shares with the neighbouring Bukit Mahkota township, Bandar Seri Putra strong suits include its midway position of KL city and Putrajaya as well as the host of educational facilities in the area.

With a RM450,000 budget, buyers can consider one of the 60 units of double-storey semi-detached houses that will be launched together with 23 bungalows next month.

Developed by Bangi Heights Sdn Bhd, a subsidiary of main-board listed UM Land Bhd, this newest phase on 14 acres marks the company's move to make BSP a place that will appeal to upgraders.

Its general manager of sales and marketing Lau Boon Ann said the semi-dees will feature four-plus-one bedrooms and will come in three styles ranging from 2,457 sq ft to 2,791 sq ft.

For the bungalows, he said it will be the "first bungalow-and land package offered in the development".
"Buyers can choose from four designs, each with five-plus-one bedrooms," he said.
"With dimensions varying from 55 ft by 80 ft to 80 ft by 70 ft, they will at least 3,329 sq ft of space."
Lau said he expects the bungalows to be tagged from the RM680,000 mark.

The 898-acre BSP that has so far been 11 years in the making and with a current population of 12,000 is characterised by a systematic road network, a host of amenities and recreational facilities, extensive landscaping and dedicated township management services.

Nearby it are institutions of higher learning such as Universiti Putra Malaysia, Universiti Kebangsaan Malaysia, Universiti Multimedia, Universiti Tenaga Nasional and Kolej Islam Malaysia.

"Being in one of the country's fastest growing corridors has also boosted property prices in the area... in fact, appreciation has been steady and there's still more capital upside to be had as the eventual population of the township will be 30,000," said Lau.
__________________________________________________________________

For more information call Bangi Heights at 03-8927 1611, or surf to www.umland.com.my

E&O Prop targets Singapore market

By The Star

KUALA LUMPUR: E&O Property Development Bhd (E&O Prop) has chosen Singapore for its maiden foray overseas, setting up a marketing office and sales gallery in the republic.

The company said Singapore was a clear choice because Singaporeans and Singapore-based foreign investors were some of its largest overseas buyers.

“The high per capita income, buoyant property market and close proximity to Malaysia make Singapore a key strategic market for E&O Prop,” it said in a statement.

Marketing and sales director K.C. Chong said Singapore's property market was mature and investors were savvy and had high purchasing power.

He said Malaysian properties had become more affordable following the Government's relaxed restrictions on foreign property ownership for residential properties and the abolishment of real property gains tax in April.

TA lines up high-end projects

By New Straits Times

STOCKBROKER and property developer TA Enterprise Bhd said it plans to launch two or three high-end developments in the Klang Valley before the end of the year.

TA has 88ha of freehold prime land in the Klang Valley, valued at about RM700 million, which should keep the group busy for at least 10 years.

Group managing director and chief executive officer Datin Alicia Tiah said TA hopes to launch two projects by December.

One is the 20ha Seri Suria project comprising commercial blocks, condominiums, a mall, private school, medical centre, shoplots and a cineplex in Bandar Seri Damansara.

The other project is Nova Square, a three-block condominium at the junction of Jalan Bukit Bintang and Jalan Imbi.

"Seri Suria will be a self-contained integrated township, in the likes of Mont' Kiara. As for Nova Square, we will maintain one block for service apartment to be managed by us and sell the other two blocks," Tiah said.

Tiah said TA also plans to launch a niche and eco-friendly development in Ampang Hilir, where it has 1.21ha, and a unique and high-end project in Jalan U Thant sprawled owver 0.24ha.

"I envisage a lot of interest from UK, Japan, South Korea, the US and the Middle East for these projects. They all want to have a piece of the action," Tiah told reporters after signing an agreement with IFCA MSC Bhd, a software vendor.

TA Properties projects

By The Star

KUALA LUMPUR: TA Enterprise Bhd unit TA Properties Sdn Bhd expects to launch two new projects locally, bringing its total to five by next year.

Ian Jeremy Jones exchanging documents with Datin Alicia Tiah. Within them are IFCA general manager Kuan Seng Wood and TA Properties executive director Kimmy Khoo

TA Enterprise managing director Datin Alicia Tiah said the company targeted to launch its Seri Suria mixed development in Bandar Sri Damansara by year-end.

It had also applied for the development order for its three-block residential and commercial project, Nova Square, located along Jalan Bukit Bintang in Kuala Lumpur.
Nova Square, she said, was targeted for launch by the first quarter of next year.

“These projects will keep us busy over the next two to three years,” she said after an agreement signing between TA Properties and software vendor IFCA MSC Bhd yesterday.

On Nova Square, Tiah said the company had received “a lot of interest” from potential overseas buyers, consisting of developers, fund managers and other parties from countries such as South Korea and Australia.

Nova Square, she added, would consist of three high-rise buildings, one of which would be fully managed by a service operator, and the remaining two sold.

Tiah said the company also had pockets of land in the Bukit Ceylon, Ukay Heights and U-Thant areas. “Expect something very unique and high-end from these (pieces of land),” she said.

On whether TA Properties was ready to go public, she said: “We will keep an open mind. I won't say no, it is something we will consider. If it happens, it will most likely be in Malaysia.”

Meanwhile, the agreement signed is aimed at providing fully integrated portal-based business management solutions for TA Properties.

IFCA MSC executive director Ian Jeremy Jones said IFCA software would help TA Properties to connect to its supply chain and customers through one common platform – its website.