RM540m boost for Iskandar region

Three Malaysian companies are investing a total of RM540 million in new waterfront properties within the Iskandar Development Region (Iskandar), Johor Menteri Besar Datuk Abdul Ghani Othman said yesterday.

The projects — by Kota Selat Tebrau Sdn Bhd (KST), Best Reality Point Sdn Bhd and Tune Hotels Sdn Bhd — are all coming up in Danga Bay, which is within a 25km stretch of the Iskandar waterfront.

KST, a special purpose company under the South Johor Investment Corporation (SJIC), is the master developer of waterfront land in Nusajaya and Danga Bay, which are among the two prime locations within the Iskandar.

KST will develop Iskandar’s first high-end serviced condominium called Oakwood Residence Johor (ORJ).

ORJ, a joint venture with Singapore-based Oakwood Asia Pacific Pte Ltd, will occupy a 22-storey tower block offering 235 fully-serviced units. Also to be built are a podium and two 40-storey towers, which will be converted into serviced residences.

This RM400 million integrated-building coming up on a 2.43ha waterfront site will be jointly developed by KST and Danga Bay Sdn Bhd. Construction is due to start in April.

Construction will also start this month on a new 371-room four-star hotel by Best Reality Point. The company is investing RM120 million in the development, including RM11.5 million for land.

The 25-storey hotel, which will be managed by the International Hotel Group, will be ready by mid-2010.

Tune Hotels, meanwhile, is investing RM20 million to open a 220-room hotel in Danga Bay, with construction scheduled to start by June.

The hotel, when ready early next year, will have café and fast-food outlets, a 24-hour convenience store, Internet room, safe room, male/female surau, self-service laundry and luggage room.

Abdul Ghani said to date, Iskandar has attracted some RM22 billion in total investments, and the hive of activity has spurred a property boom in Johor Baru with no less than 25 local developers investing billions of ringgit over the past year into new townships and residential schemes.

Abdul Ghani said all indications are that Iskandar is on track to achieve the total investment target of RM47 billion by 2010.

“The IDR is the brainchild of the Prime Minister. We are anxious to roll out all planned projects fast to fully realise his vision for south Johor,” he said in a statement, adding that more announcements about new Iskandar investments are likely soon.

By New Straits Times

Local firms to build IDR waterfront projects

JOHOR BARU: Three local companies will undertake new waterfront property projects worth about RM540mil in the Iskandar Development Region (IDR) this year.

Kota Selat Tebrau Sdn Bhd, Best Reality Point Sdn Bhd and Tune Hotels Sdn Bhd have projects slated in Danga Bay, which is within the 25km stretch of the IDR waterfront.

“The investments are a clear indication of confidence not only by foreign investors but also among local investors in the IDR,” Johor Mentri Besar Datuk Abdul Ghani Othman in a statement.

To date, IDR has attracted some RM22bil in investments, especially from Middle Eastern investors. It is on track to achieve the targeted RM47bil by 2010.

He said no less than 25 developers had invested billions of ringgit in the IDR over the past one year.

Ghani, the co-chairman of the Iskandar Development Region Authority (IRDA), said more announcements on IDR investments would be made soon.

An artist’s impression of Oakwood Residences, Johor Baru

Kota Selat Tebrau will develop the IDR’s first high-end serviced condominium, Oakwood Residence Johor (ORJ), which is a joint venture with Singapore-based Oakwood Asia Pacific Pte Ltd.

Oakwood manages serviced apartments in China, India, Indonesia, Japan, South Korea and Thailand, with 19 more properties due to open over the next two years across the Asia-Pacific.

The RM400mil project comprises a 22-storey tower block with 235 fully serviced units, two 40-storey towers which will be converted into serviced residences, and a podium.

Best Reality Point will be investing RM120mil in a 25-storey hotel with 371 rooms which would be managed by the International Hotel Group on its completion in mid-2010.

Tune Hotels is investing RM20mil in its 220-room hotel, with construction to start in June for completion in early 2009.

The no-frills hotel operator plans to open six more hotels this year in Ipoh, Penang, Miri, Kuching, Kota Kinabalu and at the Low Cost Carrier Terminal in Sepang.

By The Star (by Zazali Musa)

PKNS expects De Rozelle Phase 3 to sell out

PKNS' De Rozelle Condominium is very popular with young buyers

PETALING JAYA: The Selangor State Development Corporation (PKNS) expects the third and final phase of De Rozelle Condominium in its Kota Damansara township to sell out within a week of its launch.

“With 300 interests received and only 100 units available, we expect Phase 3 to be sold out fast,” said Mohd Wazir Bin Haji Abdul Gani, public relations manager of PKNS.

According to Wazir, the project is very popular especially among the Chinese population, with a lot of buyers being newly weds and young working adults. A large portion of buyers is in the younger age group, with 20% to 30% of buyers aged 35 years and above.

“The demand is good because of the location; close to TV3, the public Seri Selangor Golf Club, Bandar Utama, Tropicana and Petaling Jaya. There are also access roads nearby such as the North Klang Valley Expressway (NKVE) and the Damansara Puchong Highway (LDP),” he explained.

De Rozelle Condominium takes up 11.70 acres and comprises four 100-unit blocks. The project was first launched at the end of 2005. Sold under the build then sell (BTS) scheme, Phases 1 and 2 have since been sold out.

Phase 3, which is now open for registration, is already up to 90% constructed and will be completed with certificate of fitness (CF) by the middle of this year. The condominium units come in two designs: Type A sized at 998.35 sq ft and Type B sized at 1,040 sq ft. Prices for Phase 3 begin at RM185,000, an increase from RM180,000 for Phase 2 and RM175,000 for Phase 1.

Wazir also revealed that PKNS has plans to develop its first SoHo project, also in Kota Damansara. “Piling works have already begun, but It’s too early to say much except that it will have bigger and more expensive units, equipped with modern facilities and perhaps a SMART home system. All these will be announced in due time,” he added.

PKNS’s other projects within the 3,924- acre township include shop offices and 2-storey superlink homes. Priced from RM850,000 and RM571,000 respectively, both projects are almost sold out with only Bumiputera lots left.

The development of the Kota Damansara township commenced in 1981 and is expected to accommodate 120,000 residents upon completion. It features a 4242.79-acre forest reserve and houses the 780.85-acre Selangor Science Park 1.

By theSun (by Yeong Ee-Wah)

More developments for IDR

JOHOR BARU: Three Malaysian companies are investing a total of RM640 million in new waterfront properties within the Iskandar Development Region (IDR).

The projects by Kota Selat Tebrau Sdn Bhd (KST), Best Reality Point Sdn Bhd and Tune Hotels Sdn Bhd are all coming up in Danga Bay, which is within a 25km stretch of the IDR waterfront.

Johor Menteri Besar Datuk Abdul Ghani Othman said the investments were a clear indication of, not only strong foreign interests, but also growing local confidence in the IDR.

To date, the IDR has attracted some RM22 billion in total investments, especially from Middle Eastern investors. Major local firms like UEM Land Bhd are also blazing a trail with signature developments in the southern corridor.

The hive of activity has also spurred a property boom here with no less than 25 local developers investing billions of ringgit over the past year into new townships and residential schemes.

Ghani said all indications were that the IDR was on track to achieve the total investment target of RM47 billion by 2010.

The new project announcements by KST, Best Reality Point and Tune Hotels are among the latest developments coming up along the waterfront here.

KST will develop the IDR’s first high-end serviced condominium called Oakwood Residence Johor (ORJ). ORJ, a joint venture with Singaporebased Oakwood Asia Pacific Pte Ltd, will occupy a 22-storey tower block offering 235 fullyserviced units. Also to be built are a podium and two 40-storey towers, which will be converted into serviced residences.

This RM400 million integrated building coming up on a six-acre waterfront site, will be jointly developed by KST and Danga Bay Sdn Bhd. Construction is due to start in April.

“We’ve no doubt the IDR will become a regional destination and we are excited about establishing our presence in Danga Bay,” said Oakwood Asia Pacific managing director PG Mathew. Oakwood now manages serviced apartments in China, India, Indonesia, Japan, Korea and Thailand. Nineteen extra properties are due to open over the next two years across the Asia Pacific.

Meanwhile, construction will also start this month on a new 371-room four-star hotel by Best Reality Point. The company is investing RM120 million in the development, including RM11.5 million for land. The 25-storey hotel, which will be managed by the International Hotel Group, will be ready by mid-2010.

“We are excited about the IDR as a business proposition. I want to commend the Prime Minister
for his vision and foresight in opening this growth corridor in Johor,” said company director Mok Tai Dwan.

Tune Hotels is also investing RM20 million to open a 220- room hotel in Danga Bay, with construction scheduled to start by June. The no-frills hotel, with an on-line room booking facility, is among the six the company plans to open this year in Ipoh, Penang, Miri, Kuching, Kota Kinabalu and the Low Cost Carrier Terminal in Selangor.

“We already have 25 sites under construction and are looking for more sites in strategic locations,” said Tune Hotels chief executive officer Mark Lankester, noting that the company was among the first to make a strategic decision to invest in the IDR in February last year.

By theSun

MRCB expects job orders to hit RM9b

MALAYSIAN Resources Corp Bhd (MRCB), a construction and property company, expects orders to jump by as much as 50 per cent to RM9 billion by the end of the year, its top official said.

The combined order book of the main board company currently stands at around RM6 billion to RM7 billion.

"We're quite confident in terms of where we're going," group managing director Shahril Ridza Ridzuan said in an interview with Business Times.

The two businesses typically account for up to 85 per cent of group revenue and profit, with the balance coming from environmental activities, property assets and building services, among others.

On the property front alone, the group is planning up to RM6 billion worth of new developments. It is keen on securing more projects in the Middle East, Shahril said.

MRCB was once a cash-strapped company that has managed to successfully transform over the years. Today, it is a favourite among foreign fund managers.

The group is well known for its KL Sentral development in Kuala Lumpur, which comprises hotels, apartments, shops and the rail and bus terminals.

Shahril pointed out that MRCB has achieved solid growth in revenue and pre-tax profit over the last four years.

Net profit last year, up 21 per cent to RM40.7 million, would have been about RM28 million higher had the company not decided to take in a deferred tax liability in the fourth quarter, as well as the entire cost of a bond refinancing for its KL Sentral project, he said.

The group will start to pay dividends for the first time in its history, starting from the 2007 fiscal year.

Despite the group's rosy prospects, MRCB's share price has been falling sharply this year.

Just last year, it was one of the stock market's star performers, appreciating 145 per cent as both local and foreign funds lapped up the shares.

Shahril insisted that the company's strong fundamentals remained intact.

"I think what you're seeing now is nothing more than a fallout from redemptions in the overseas market; foreign funds having to essentially sell their profitable holdings, which means companies like ourselves, Gamuda, IJM.

"If you look at the universe of stocks that we live in, everybody has gone down in this period. So we're really no different from our market segment," he said.

Analysts agreed, pointing out that at least 60 per cent of the company's shares are typically held by funds.

They continue to like the stock, with 11 of at least 12 analysts who track the stock recommending a "Buy" on it.

"It's a stock we like for three reasons: the turnaround story and strong financials, its professional management, and the exposure it offers to government spending as a government-linked construction company," said Choo Swee Kee, chief investment officer at TA Investment Management.

The shares, which ended last year at RM2.55, peaked at RM3.04 in mid-January, then started on a downward trail that became more pronounced last month. The stock closed at RM1.84 yesterday, down seven sen.

By New Straits Times - Business Times (by Adeline Paul Raj)

MRCB-led group wraps up Penang monorail talks

A GROUP of firms led by Malaysian Resources Corp Bhd (MRCB) has wrapped up talks with the government on the RM3.4 billion Penang monorail project.

The government, through Syarikat Prasarana Negara Bhd, had early this year issued the consortium a letter of intent for the project.

Second Finance Minister Tan Sri Nor Mohamed Yakcop said last month that groundwork for the monorail project was expected to begin by the end of the year.

"We understand that they are now considering all the input we've given them, and we're waiting for them to revert to us if there's anything else that they need, in terms of information," MRCB group managing director Shahril Ridza Ridzuan told Business Times in an interview last week.

If awarded the project, the consortium - comprising Penang Port and Scomi Group - plans to get the project off the ground as soon as possible.

The construction period could stretch between three and four years, he said.

"We've done a lot of preliminary work already at our own expense, in terms of identifying the routes and stations. What needs to be done essentially is to get an agreement from all the relative agencies who would be taking part in this exercise," he said.

Credit Suisse, in a recent report, said it expects details on the project to be announced in the next two to three months.

The monorail project will link the main tourist areas on the island to the city centre and its vicinity.

By New Straits Times (by Adeline Paul Raj)

Zelan wins RM802m job in UAE

A ZELAN Bhd'S wholly-owned subsidiary has been awarded a 925.3 million dirham (RM801.779 million) contract for package 2 of the Meena Plaza construction in Abu Dhabi, United Arab Emirates (UAE).

In a statement, Zelan said Zelan Holdings (M) Sdn Bhd and its joint venture partner Al Ambia Sdn Bhd received the award from Meena Holdings and they have 30 months to complete the project.

The project will not have material impact on the earnings for its financial year ending March 31, 2008 but is expected to contribute positively to future group earnings, it said.

This contract will further enhance Zelan's participation in the construction and infrastructure development of the Gulf region, particularly in the UAE, it added.

The Meena Plaza is the third building construction project for Zelan in the region.

One is the Al-Reem Island project in Abu Dhabi in which it is in a consortium with IJM Construction Sdn Bhd, Sunway Builders Sdn Bhd and LFE Engineering Sdn Bhd.

The other is the Sidra Tower project in Dubai.

Zelan-Al Ambia is a 70:30 joint venture set up to undertake the mixed development project.

Zelan, which has been leveraging successfully on its ability to work as a consortium partner to other international players, also has a significant presence in the infrastructure construction sector in the Gulf region.

Its ongoing projects include two power and water desalination plants in Saudi Arabia.

By Bernama