SM Land set to launch NZX Commercial Centre

The second phase of NZX is set for launching next month

SM Land Sdn Bhd is launching the second phase of its freehold NZX Commercial Centre project in Ara Damansara next month. This will comprise 34 units of 3-storey semidee shop lots, 24 units of 5-storey shop lots and a 150-room boutique hotel. Prices start at RM2.5 million onwards for the units with lot sizes of 30ft by 70ft to 25ft by 85ft.

SM Land’s director, Eric Ong, said the development has been receiving a tremendous response since it was opened to the public last month. “We are averaging about 3,000 to 4,000 visitors a day, with more during the weekends.

We are hoping to continue drawing in the crowd by organising yearround events there,” he told PropertyPlus.

To date, all 186 units of 3- and 5-storey shop offices have been sold and handed over to purchasers.

Prices range from RM1.7 million to RM2.5 million for the units with built-ups of between 6,000 sq ft to 9,000 sq ft.

Within the project is Niu Ze Xui, an open-concept pedestrian mall featuring Malaysia’s largest covered boulevard and first-ever climate control system. The 300 kiosks available there have also been tenanted out for rental rates of RM1,500 to RM1,800 per month.

Ong said the second phase is expected to do well, similar to the units in the first phase that were quickly taken up after they were launched. About 20% of the secondphase units have been taken up so far. “The units in the development have a low density and come with an al-fresco design,” he said. It has a gross development value (GDV) of RM200 million and is targeted for completion by 2011.

SM Land is the development arm of Dragon Group, whose core businesses include manufacturing optical media. Their previous developments include the revival of Section 14’s Digital Mall and Pertama Residencies, a condominium project in Cheras.

The developer recently completed its other ongoing project, USJ Nineteen, which is scheduled for launch by the forth quarter this year. It is located on a 4.4-acre tract in UEP Subang Jaya and consists of a 3-storey shopping mall with a net lettable area of 240,000 sq ft as well as 1,064 units of serviced apartments.

On the group’s immediate future projects, Ong said it would include a high-end residential development comprising 70 units of semi-dees in Serdang, as well as an integrated commercial project in Bukit Jalil.

“The project in Bukit Jalil is exciting for the group as it will have a GDV of about RM1 billion. It will consist of a hotel, retail outlets, a shopping complex, offices and serviced suites,” he said, adding that the group will be focusing on more niche projects in the future.

It has an undeveloped landbank in prime locations in the Klang Valley and Penang.

SM Land also has a track record of successfully reviving abandoned or stalled projects to realise their full potential. These developments include Digital Mall, NZX, and USJ Nineteen. “We might be embarking on another upmarket abandoned project located within the Golden Triangle. We are currently in negotiations and hope to finalise the deal by this year,” he said.

By theSun - PropertyPlus (by Yap Yew Jin)

UEM World revamps

Firm to be pure property player after listing UEM Land, spinning off other units



UEM World Bhd plans to become a pure property company by spinning off its cement and drug-making businesses in a sale to its shareholders.

UEM Land Sdn Bhd, its property unit that's overseeing Malaysia's biggest property project in Johor, will be listed while UEM World will be de-listed under its latest restructuring exercise.

"The exercise is carried out to provide the platform for further growth of our business. UEM Land in recent periods has increasingly become the driver for the share price of UEM World," UEM World managing director Datuk Ahmad Pardas Senin said in a media briefing in Kuala Lumpur yesterday.

UEM Group Bhd, which holds 52 per cent of UEM World, will spend roughly RM2 billion to RM3 billion of its internal funds for the restructuring exercise.

He said many investors in UEM World were mainly interested in UEM Land and this exercise would allow them to participate in a pure property company.

UEM Group can then focus its efforts primarily as developer and owner of infrastructure assets, specifically around PLUS and its expertise in project management and engineering and construction.

At the moment, UEM World has three components under its umbrella which include four listed subsidiaries, UEM Land and the remaining unlisted businesses.

In the first phase, UEM World will sell its entire stake in UEM Builders Bhd, Opus Group Bhd, Pharmaniaga Bhd and Cement Industries Malaysia Bhd (CIMA).

This will be carried out through a restricted offer for sale (ROS) to shareholders of UEM World at a 15 per cent premium from a one-month weighted average market price.

"UEM Group will buy all the shares that are not acquired by the shareholders under this proposal to ensure that it will be a success," said Ahmad Pardas.

Under the second step, a shareholder with 100 UEM World shares will receive 125 UEM Land shares.

To participate in the ROS, a shareholder will have to pay RM120.26 to receive a basket of 35 shares in UEM Builders, 21 shares in Opus, five shares in Pharmaniaga and five shares in CIMA.

UEM World will also sell off all its unlisted businesses and undertakings to UEM Group for RM13.9 million.

As UEM World turns into a shell company, cash realised under the ROS and disposal of unlisted businesses exercise will be returned to shareholders of UEM World.

This means that a shareholder with 100 UEM World shares will get RM125.82 cash under a capital repayment exercise.

Currently, UEM Land shareholders are UEM World at 71.5 per cent and UEM Group at 28.5 per cent. After the exercise, UEM Group will own 65.7 per cent of the newly listed property unit with the remaining stake owned by other shareholders of UEM World.

The corporate restructuring is expected to be completed in September.

By New Straits Times (by Adeline Paul Raj and Jeeva Arulampalam)

Revamp plan to drive UEM World

Analysts say it will make group more focused and raise unit UEM Land profile

UEM World Bhd's proposed restructuring to better position the group for further growth has received positive response from analysts.

“The exercise will make UEM World more focused and raise the profile and financial capability of UEM Land Sdn Bhd,” an analyst said, adding that the exercise would create a strong and full-fledged property development company.

UEM World managing director Datuk Ahmad Pardas Senin told a briefing yesterday the exercise would provide a platform for further growth in the company's business.

“It is designed to give shareholders of UEM World direct participation in UEM Land, which in recent periods has increasingly become the driver for the share price of UEM World,” he said.

Datuk Ahmad Pardas Senin at the media briefing.

UEM World has seen its share price more than double from RM1.78 in the beginning of 2007 to RM4.12 before its suspension from trading on Tuesday.

An analyst at a local brokerage said the proposed consolidation of UEM World would make UEM Land a group more focused on the property business.

“It will be able to leverage on and take advantage of its huge land ownership in the Iskandar Development Region (IDR),” he said, adding that local and foreign investors had bought into UEM World for the company's long-term viability.

Under the proposed restructuring, existing shareholders of UEM World will receive what they effectively own in UEM World. They would also have to pay a 15% premium on the market value of the listed subsidiaries, should they choose to subscribe for the non-renounceable restricted offer for sale (ROS).

Assuming that a shareholder who owns 100 UEM World shares accepts the ROS, he would have to pay RM120.26 for a basket of 35 UEM Builders Bhd shares, 21 Opus International Group Bhd shares, and five shares each in Pharmaniaga Bhd and Cement Industries of Malaysia Bhd. On top of that, the shareholder would also receive RM124.82 cash.

If the same shareholder does not accept the ROS, he will receive 125 shares in UEM Land and RM124.82 in cash.

Analysts said both options would benefit shareholders, as they would be offered a capital repayment of RM124.82 per 100 UEM World shares.

“The exercise will not put shareholders at a disadvantage. Apart from the capital repayment, they would also receive dividend in specie as well as capital gains from the disposal,” an analyst said.

“The exercise will eventually turn the company into a pure property play. The current property market is very lucrative,” he added.

Analysts say Bandar Nusajaya, a key component of IDR and UEM World's flagship project, would enjoy higher value as the company launches more properties there in the coming years.

UEM World, which posted a year-on-year net profit growth of 200% for the third quarter ended Sept 31 to RM37.59mil, has a construction order book that continues to excite investors. Analysts said the company would continue to do well, largely due to its development in the IDR.

By The Star (News Analysis by Leong Hung Yee)

Analysts mixed on UEM World restructuring

Most like the direct exposure to group's biggest asset

ANALYSTS were mixed in their opinions as to whether the proposed restructuring of UEM World Bhd would be good for all its shareholders.

Most liked the fact that the deal allows investors to have direct exposure to the group's biggest asset, the soon-to-be-listed UEM Land, master developer of the Iskandar Development Region in Johor.

UEM Land is 71.5 per cent owned by UEM World.

"It's changing from a conglomerate to a pure-play property development company. It's good for shareholders to have that focus," said an analyst from Hwang-DBS Vickers Research.

UEM Land is, after all, the prime beneficiary of Iskandar, he pointed out. As it stands now, investors have to buy UEM World to have exposure to UEM Land.

"If they believe in the prospects of UEM Land, which I think has very big potential, they should go for the deal," he added.

Some analysts, however, felt that the 15 per cent premium on the restricted offer for sale (ROS) to UEM World shareholders - which allows them to participate directly in the company's four listed subsidiaries - is nothing to be terribly excited about.

(It is a 15 per cent premium to the one-month volume weighted average market price of the companies' shares up to February 12.)

Jon Oh of JPMorgan, for one, said he was neutral on the deal as it was minimal value-enhancing.

The deal seems to be nothing more than just selling off the UEM World assets at close to market value and hiving off UEM Land, he felt.

"This just ring-fences the Iskandar investments away from the other businesses. They are still banking on the story of asset reflation and on Iskandar being a success," he said.

The premium on the ROS is "OK, but not spectacular", he added.

Meanwhile, analysts noted that there was a possibility of some of the listed subsidiaries, like Pharmaniaga Bhd, being taken private.

UEM Group owns 51.9 per cent of UEM World, which in turn owns 72.5 per cent of Pharmaniaga today.

UEM Group will thus have to make a mandatory takeover offer for the remaining shares in Pharmaniaga it does not own once the ROS becomes unconditional.

"They can privatise Pharmaniaga, or if they want to keep it listed, they may place out the shares," an analyst noted.

Analysts were told at a briefing by UEM World officials yesterday that the group wants to keep the four subsidiaries listed.

By New Straits Times (by Adeline Paul Raj)

UEM Land listing in September

Restructuring exercise worth RM2bil to RM3bil

KUALA LUMPUR: UEM Land Sdn Bhd, the property development subsidiary of UEM Group Bhd, will be listed in September in a restructuring exercise worth between RM2bil and RM3bil, while UEM World Bhd, the listed investment holding company of the group, will eventually be delisted.

UEM Group has a 51.9% stake in UEM World and 28.5% stake in UEM Land.

The restructuring exercise would involve the non-renounceable restricted offer for sale (ROS) of UEM World’s shares in four listed subsidiaries to its (UEM World’s) shareholders. The company’s stakes in the four listed subsidiaries are Pharmaniaga Bhd (72.5%), Opus Group Bhd (62.2%), UEM Builders Bhd (51.7%) and Cement Industries of Malaysia Bhd (CIMA, 50.7%).

From left: UEM Group Bhd senior director of corporate development Raja Azmi Raja Nazuddin, Datuk Ahmad Pardas Senin and UEM Land Sdn Bhd managing director Wan Abdullah Wan Ibrahim at the media briefing

The ROS price would be at a 15% premium to the one-month volume weighted average market price of the shares of the listed subsidiaries up to Feb 12 and entitled shareholders would be able to acquire the shares in proportion to their shareholding in UEM World on a rights basis.

UEM Group would also undertake to acquire all the shares not acquired under the ROS besides acquiring UEM World’s other remaining businesses and undertakings for about RM14mil.

UEM World, which has a 71.5% stake in UEM Land, would then distribute its equity interests in the company to its shareholders via a dividend in specie (DIS) followed by the listing of UEM Land by way of a new company. The transfer of UEM World’s stake in UEM Land to UEM Group would result in the latter having a 65.7% stake in the company.

UEM World would also undertake a capital repayment exercise to return all the cash to its shareholders following the proposed ROS and proposed DIS.

The company is also offering two options for shareholders. For those who opt for UEM Land shares, the exercise will see them getting 125 UEM Land shares plus a capital repayment of RM125.82 for every 100 UEM World shares. For those who wish to participate in the ROS, they will have to pay RM120.26 to receive a basket of 35 shares in UEM Builders, 21 shares in Opus Group, five shares in Pharmaniaga and five shares in CIMA and will also receive the capital repayment sum.

UEM Land’s issued and paid-up share capital as at Jan 31 was RM1.09bil, comprising 2.18 billion shares, while UEM World had an issued and paid-up capital of RM2.1bil.

UEM World managing director Datuk Ahmad Pardas Senin said the exercise would provide a platform for further growth in the company’s business.

“It is designed to give shareholders of UEM World direct participation in UEM Land, which in recent periods has increasingly become the driver for the share price of UEM World,” he told a media briefing yesterday.

Ahmad Pardas added that the exercise would also enhance the transparency of valuation and unlock value in UEM Land.

“For those who opt for the ROS, this is an opportunity to participate directly in the listed subsidiaries and, at the same time, to realise value from monetisation of the listed subsidiaries at a premium to the market value,” he said.

He added that the exercise was expected to be complete in September if things were to go according to plan.

By The Star (by Fintan Ng)

Big jump in revenue from sales at property unit

KUALA LUMPUR: UEM Land Sdn Bhd, which will be listed in September should the restructuring exercise it will undergo soon pass through smoothly, has a lot of work in hand.

It is the master developer of the 24,000-acre Bandar Nusajaya located in Gelang Patah in southwestern Johor.

Bandar Nusajaya is also in the heart of the Iskandar Development Region (IDR) and UEM Land is currently developing 11,000 acres of the land.

According to UEM Land managing director Wan Abdullah Wan Ibrahim at a media briefing yesterday, the company has seen substantial improvement in revenue from sales of residential units, industrial plots and sale of land to other developers for co-development purposes.

“Our growth strategy is to create a nucleus for the IDR via seven catalyst development projects.

“They comprise a resort, Puteri Habour, Johor State New Administration Centre, Southern Industrial and Logistics Clusters, EduCity, MediCity and Nusajaya Residences,” he said.

For the residential components, UEM Land is in a joint venture with Limitless LLC, a unit of Dubai World, for the development of a 111-acre project in Puteri Harbour comprising 900 waterfront homes.

It is also in a joint venture with Gamuda Bhd to develop the 1,200-acre Horizon Hills, which includes 12-gated precincts.

The company is directly developing the 250-acre Nusa Idaman, the bungalow-only 360-acre Ledang Heights and the 365-acre East Ledang, a gated community to be launched next week.

Wan Abdullah also said 600 acres of the Southern Industrial and Logistics Clusters would be ready for their purchasers to build factories before the end of the year.

By The Star (by Fintan Ng)

UEM Land’s profit catalyst

PETALING JAYA: UEM Land Sdn Bhd expects record sales and profit by 2012 when development of its Bandar Nusajaya in the Iskandar Development Region (IDR) picks up momentum.

Managing director Wan Abdullah Wan Ibrahim said the development of Nusajaya should reach its “tipping” point by 2011 as new activities and projects were being launched.

Targeted for completion in 30 years, Nusajaya is expected to incur a total gross development cost of RM55bil.

UEM Land is currently working on 11,000 acres in Nusajaya.

The sale of 4,500 acres to Khazanah in 2006–2007 for RM1.9bil has reduced the company's gearing to 0.48 time from 17.38 times before.

Upon completion, Nusajaya will have 100,000 homes and a population of 500,000. Besides the residential component, the other growth catalysts for Nusajaya include a theme international resort, education city (EduCity), medical city (MediCity), waterfront development, Johor's new administrative centre and the Southern and Industrial Logistics Centre, an industrial estate development.

Analysts said the expected consolidation of UEM Land's parent, UEM World Bhd, would raise the profile and financial capability of UEM Land to actively promote its Nusajaya development.

UEM World is expected to announce today a major corporate exercise that could involve the streamlining of the group's business structure.

“The proposed consolidation of UEM World will make it a more focused group in the property business. It will be able to leverage and take advantage of its huge land ownership in the IDR,” an analyst at a local brokerage said.

Wan Abdullah said the company needed to establish considerable level of activities and critical mass to ensure Nusajaya's success in a shorter time.

“Going by its normal pace, the development will take about 180 years but we are fast tracking it by working with strategic partners who are competent in their areas of expertise,” he told StarBiz recently.

So far, the development of Nusajaya is progressing steadily with 11,000 homes completed by various developers and delivered to buyers.

The value of the units sold by UEM Land last year rose to RM485mil compared with RM80mil in 2006.

The sales value does not include other contributors to revenue, such as sale of land during the de-gearing exercise, revenue from construction of the new administrative centre and other strategic land sale to joint-venture partners.

By April, Johor's administration will be moving to Nusajaya. To date, 95% of the Mentri Besar's office and the state legislative assembly office have been completed.

UEM Land is negotiating to build the Federal administrative complex, which will be under the build, lease and transfer model.

According to Wan Abdullah, many developers are vying to participate in the development of Nusajaya and that the company would be selective and only team up with those that could add value to the development.

“The partners must have the right technical expertise, financial strength and marketing network to add value and contribute positively to the development of the sprawling township,'' he said.

UEM Land has tied up with a few partners, including Gamuda Bhd to undertake the development of Horizon Hills and with Limitless LLC, a unit of Dubai World, to build 900 waterfront homes in Puteri Harbour.

The 1,200-acre Horizon Hills resort development is a 50:50 joint venture between UEM Land and Gamuda.

Since the first product was launched in March last year, sales have to date reached RM350mil.

In December, the company signed a 40:60 joint venture with Limitless.

“We are looking at working with more competent partners to offer more quality property products as we are targeting the regional market,” Wan Abdullah said.

By The Star - StarBiz (by Angie Ng)

RM4b business within a year seen

YEE: KWC hopes to not only double the value of the current business but to grow exports to a level that puts foreign and local demand on equal footing

The developer of Kenanga Wholesale City (KWC), a one-stop centre for garment wholesalers, believes that within a year of operation, its tenants will have transacted business valued at RM4 billion.

KWC is a wholesale market concept akin to Dubai's Gold Souk. It is being developed in the Pudu area of Kuala Lumpur.

The building, when ready in 2010, is expected to house most of the wholesalers already in the Jalan Kenanga area (behind the Jalan Pudu Fire Station) and to rope in new ones too.

Built by Kenanga Wholesale City Sdn Bhd, the 22-storey building will have a gross built-up of 1.8 million sq ft and a net lettable area of 500,000 sq ft.

The relocated retailers together with new players, including those in the shoe and handbag business, are also expected to spur export business.

"The Wholesale City's history began 20 years ago at Kenanga area with small wholesale businesses. (However) the area surrounding it is not that impressive, there is traffic congestion, lack of car park space, and loading and unloading is a constant problem," Kenanga Wholesale City Sdn Bhd chief executive officer and managing director Yee Ia Howe said.

"There are about 350 wholesale operators in the Kenanga area, who are operating from shophouses. Their current transaction value is about RM2 billion, of which 30 per cent is exported and 70 per cent is for the local market.

"With the Wholesale City, we will offer more space, including for newcomers," he said.

Yee added that KWC hopes to not only double the value of the current business but to grow exports to a level that puts foreign and local demand on equal footing.

"We expect business transaction to be RM4 billion within a year of operations," he said.

This will also be made possible by KWC working together with the Malaysia Garments Wholesale Merchants Association to promote the market overseas, targeting in particular Singapore, south Thailand, Cambodia, the Philippines, Brunei and the Middle Eastern countries.

Kenanga Wholesale will be built on a 1.29ha piece of land, which used to be the site for Tenaga Nasional Bhd staff quarters.

The new building will have a gross development value of RM1 billion.

About 70 per cent of the KWC space has already been sold, with 10 per cent of the buyers being investors who have leased their property back to the developer.

Yee expects some 792 retail lots, measuring between 300 sq ft and 600 sq ft to be taken up within the next four to six months.

KWC will also continue to hold some of the floors which translates into 51 per cent control of the mall space.

"This will ensure that the developer will be able to control and manage the property and safeguard the investment of the owners," he said.

By New Straits Times (by Vasantha Ganesan)

E&O to build RM1bil investment portfolio

KUALA LUMPUR: Eastern & Oriental Bhd (E&O) intends to build RM1bil worth of property investment portfolio in the next five years, now that the proposed merger with listed property arm E&O Property Development Bhd (E&O Prop) has got the go-ahead from shareholders.

Three years ago, E&O attempted to take E&O Prop private by making a voluntary general offer but the deal fell through because the latter’s minority shareholders voted against it at an EGM.

This time, the proposal received a huge approval of 99.9% in terms of shareholding value, and 80 positive votes from 86 shareholders during the court-convened meeting by E&O Prop yesterday.

E&O Prop shareholders are given three options – share swap, combination of cash and shares or maximised cash option. The merger is expected to be completed by June.

E&O managing director Datuk Terry Tham told reporters after the meeting that going forward, the group was expected “to continue to make handsome profits.”

Datuk Terry Tham

Executive director Eric Chan said the group had identified several prime properties to form part of the property investment portfolio, which would provide recurring income to the group.

Eventually, earnings contribution between the three core businesses – property development, property investment, and hospitality and lifestyle – would be more balanced in the ratio of 60:20:20.

Currently, property development comprised more than 90% of earnings, Chan said, adding that over RM4bil worth of properties were targeted for launch within the next three years.

E&O, which owns the Delicious Group, plans to open another restaurant at the Dua Residency Annexe, Kuala Lumpur, which is also owned by E&O.

Presently, there are three Delicious and two D’lish outlets under the group in the Klang Valley.

Tham said a Delicious outlet was also anticipated to open at one of its properties in Penang.

On the recent memorandum of understanding signed with Kuwait Finance House for the development of Heritage District in the Iskandar Development Region, Chan said it was still at a preliminary stage as the involved parties had not finalised the terms.

“It is still hot from the oven. We will be looking at the details of the plan in the next couple of months,” he said.

By The Star

Property to be enlarged E&O revenue driver

PROPERTY development will continue to be the core driver of the soon-to-be-enlarged Eastern & Oriental (E&O) group, with over RM4 billion projects to be launched within the next three years.

Managing director Datuk Terry Tham said in five years, property development would account for 60 per cent of the group's earnings, while property investment and hospitality/lifestyle business would equally contribute 20 per cent each.

"Our property investment division will allow us to maintain prime commercial assets worth RM1 billion over the next five years," he said, adding that this will provide the group with recurring income and capital appreciation.

Tham also said expansion plans are under way for the group's existing E&O Hotel and Lone Pine Hotel as well as increasing the number of its food and beverage outlets under the Delicious group.

He added that an additional 150 suites will be added to E&O Hotel's 101 suites while Lone Pine Hotel will see an increase of 50 rooms.

Tham said this at a press conference in Kuala Lumpur yesterday after the extraordinary general and court-convened meetings where shareholders voted in favour of the merger between E&O Property Development Bhd and E&O Bhd (EOB).

Expected to be fully completed by the middle of this year, the enlarged E&O group will have a market capitalisation in excess of RM1.7 billion, based on the enlarged EOB share capital as at February 11.

The shareholders of the two companies will be given three options before the merger can take place, namely full share swap, fixed cash and share combination or maximised cash.

Tham said a total of RM213 million cash funding is readily available should all the minority shareholders elect for the fixed combination option.

The full share swap option is on the basis of 1,000 unit of E&O Property shares for 1,100 unit of EOB shares while the fixed combination will involve 650 units of E&O Property shares for 715 units of EOB shares while the remaining 350 units of E&O Property shares is exchangeable for cash of RM875.

Tham also said EOB has signed a memorandum of understanding with Cultural Cluster Sdn Bhd on Thursday to form a joint-venture company for the development of a 78ha parcel of land within the Iskandar Development Region.

Cultural Cluster is a special purpose development vehicle owned by Al-Nibras 2 Ltd, a Labuan-based private fund company managed by Kuwait Finance House (Labuan) Bhd which is a wholly-owned subsidiary of Kuwait Finance House (Malaysia) Bhd.

By New Straits Times (by Roziana Hamsawi)

SP Setia sees revenue rise

New and existing projects to rake in RM1.8b

PENANG: SP Setia Bhd expects to generate about RM1.8bil in sales revenue from new and existing property projects in the country and overseas in the financial year ending Oct 31.

Speaking at a press conference during the company’s Chinese New Year celebration here, group managing director and chief executive officer Tan Sri Liew Kee Sin said new property launches in Vietnam were expected to rake in sales of RM300mil to RM400mil.

Existing and new projects in Penang were seen contributing about RM250mil, he said, adding that it planned to launch Setia Vista, a RM250mil landed property scheme in Relau, in April.

Tan Sri Liew Kee Sin posing for a photo at the SP Setia Show Village.

“The Eco Garden scheme, to be launched in Johor Baru (tomorrow), and other existing projects in Kuala Lumpur would generate the rest of the (targeted) revenue,” Tan said.

He said the Setia Pearl Island project in Sungai Ara had generated RM286mil in sales revenue since its launch last April.

“We are interested in introducing ecological-friendly development projects to Penang.

“In our projects, every plant, tree and shrub is planted to serve a particular ecological purpose.

“Landscaping and ecological planning is what differentiates SP Setia from other developers,” he said.

Tan added that the group was currently sourcing for land in Penang to launch new projects.

By The Star (by David Tan)

SP Setia sees up to RM400m sales from 'EcoLakes' project

PROPERTY developer SP Setia Bhd is targeting between RM300 million and RM400 million in sales of properties at its soon-to-be-launched 'EcoLakes' project in Vietnam.

Its group managing director and chief executive officer Tan Sri Liew Kee Sin said the company, which has obtained the necessary approvals to launch the project in April this year, will use the project to showcase Malaysian expertise in the property development sector in Vietnam.

The 200ha integrated development, which carries a gross development value of RM2.5 billion, is located in Ho Chi Minh City.

"We will ensure that this maiden project of ours in Vietnam carries the same high standards executed in Malaysia as we brand ourselves as one of the best developers in that country," he told reporters during a Chinese New Year gathering in Penang yesterday.

Last month, SP Setia announced that it has clinched a deal to jointly build a 32ha mixed development project in Ho Chi Minh City, which caters to expatriates and senior staff working in the Saigon High Technology Park.

Liew said SP Setia, which is expecting to record sales of RM1.8 billion for its 2008 fiscal year ending October 31, is expecting its projects in Penang to contribute RM300 million to the total.

He said the company's "SP Vista" project which will be launched in the second quarter this year, will see 225 units of three-storey homes being built plus apartments. Spread out on 8.4ha in Relau, it is set to carry a development value of RM250 million.

SP Setia's maiden foray into Penang is the Setia Pearl Island project, which features 1,200 landed homes on a 45ha site.

To be developed over the next five to six years, the project comprises three-storey terraced homes, semi-detached units and commercial lots, and is located between 4km and 5km from the proposed site of the second Penang bridge at Batu Maung, 10km from the Penang Bridge and 20km from George Town.

By New Straits Times (by Marina Emmanuel)

Sabah to set up one-stop investment authority

SABAH will set up a one-stop investment authority called the Sabah Economic Development Investment Authority (Sedia) to facilitate investments in the state.

Executive director of Institute for Development Studies in Sabah, Datuk Dr Mohd Yaakub Johari said Sedia will be governed by a board of directors comprising the prime minister and the Sabah chief minister as co-chairmen.

"It will operate in line with best practices of corporate governance recognised globally and run by a pool of top-notch management talent.

"Sedia will ensure that investors in the identified high priority sectors have one point of contact to obtain the necessary approvals, licences and available incentives for set-ups," he said.

Dr Yaakub said Sedia will also ensure that infrastructure and logistic projects are timely executed.

He was speaking at a briefing on the Sabah Development Corridor for the South Korean Ambassador to Malaysia, Yang Bong-ryull, during the latter's visit in Kota Kinabalu yesterday.

Yang was leading a nine-member delegate to look at business opportunities in Sabah, particularly in petrochemical and plantation sectors.

By New Straits Times (by Julia Chan)

Looking for property ? Step into Asia Move Machine's outlet in KLCC

A new retail property outlet named Propertrack.com.my, operating in Kuala Lumpur City Centre (KLCC), welcomes walk-in property investors interested in the secondary market within the Klang Valley.

Set up by Asia Move Machine Sdn Bhd, this property retail outlet provides licensed real estate agents an alternative marketing platform.

"What we have set up here is a shop where investors can walk in and browse through detailed brochures of residentials and commercial units available in Klang Valley," said Asia Move Machine managing director Stephen Hodgson.

"It is complementary to the classified advertisements in the newspapers as we offer a more personalised and detailed approach to property investment," he said in a recent interview held at his office along Jalan Pinang in Kuala Lumpur.

The retail property concept, inspired from Europe, offers more value-added services for real estate agents as they can treat it like an extension of their own offices.

Within the confines of propertrack.com.my retail outlet along Jalan Pinang, there are 3,800 advertisement space for real estate agents to market their properties.

Each block of space measures half an A4-sized paper.

Citing waivers of real property gains tax (RPGT) and foreign investment committee (FIC) approvals, Hodgson is optimistic of an encouraging response to propertrack. com.my from real estate agents and walk in property investors.

He related a recent incident where a Singaporean family crossed Jalan Pinang (after coming out of the Aquaria at the KL Convention Centre) and walked into propertrack.com.my.

"As they browsed through the properties advertised here they gave serious thought to invest in a couple of condomimiums within KLCC," he said.

"We're optimistic of gaining a small slice of the secondary property market within Klang Valley, especially with the waiver of RPGT and FIC approvals," he added.

By New Straits Times