Sri KDU Smart School coming up in Nusajaya, Johor

Teo and Wan Abdullah after the signing ceremony

PETALING JAYA: Janahasil Sdn Bhd, a wholly-owned subsidiary of Paramount Corporation Bhd (Paramount) has signed a sale and purchase agreement with UEM Land Sdn Bhd (UEM Land) yesterday for the acquisition of 10 acres of land in Nusajaya, Johor.

Sold for a total consideration of RM13.068 million, the land is located within UEM Land’s latest development known as East Ledang. Paramount, with a track record in the educational services
sector under the KDU brand, will construct and operate the proposed Sekolah Sri KDU Smart School on the 10-acre plot.

“Paramount will be the first private education operator in Nusajaya. The setting up of a private school of this stature is in line with our plans to develop an integrated community with world class infrastructure in Nusajaya. I am confident that the school, when completed and ready for enrolment in 2011, will be welcomed by young families looking for quality yet affordable education for their children,” said Wan Abdullah Wan Ibrahim, managing director of UEM Land.

Datuk Teo Chiang Quan, group managing director and group CEO of Paramount, said another RM40 million would be allocated for the construction of the school’s first phase.

Paramount also has an option to acquire another 15 acres of land from UEM Land for future expansion. According to Teo, the group has three years to exercise the option, which it is considering. “We are committed to doing something there; we are now doing a market study to find out why should we do another school there,” he added.

According to Teo, the company is in the midst of planning the blueprint, which could take about three months after which relevant submissions will be done. “We aim to begin piling works seven months from now, perhaps in October. It will take one and half years to build the school,” he said.

The school, which is targeted to open its doors on January 1, 2011, will cater to the current and future population of Nusajaya as well as the Johor population. It will have a slightly smaller capacity compared to its Sekolah Sri KDU in Kota Damansara, which has a full capacity of more than 2,500 students.

Other established names under the KDU banner include KDU College in Damansara Utama, Sekolah Sri KDU in Kota Damansara, KDU Management Development Centre (KMDC) in Kuala Lumpur and Petaling Jaya, as well as KDU International Language Training School (KILTS) in Chongqing, China.

According to Wan Abdullah, the school will be fronting the Coastal Highway connecting the Johor city to Nusajaya. The highway project is being spearheaded by South Johor Investment Corporation and is funded by the federal government to improve connectivity.

East Ledang, a 365-acre development launched about four weeks ago, has had its first phase 50% taken up and expects to be 100% sold in a matter of three to four months, said Wan Abdullah. He reveals that its second phase, comprising terraced homes, semidees and bungalows will be launched in 4Q2008.

UEM Land is the master developer of Nusajaya, a 24,000-acre regional city located in South Johor touted to be the largest fully-integrated urban development in South-East Asia. The group is currently undergoing a restructuring exercise which will be completed in September, said Wan Abdullah. “There have been no setbacks,” he said.

By theSun (by Yeong Ee-Wah)

UEM Land sees good response

Wan Abdullah Wan Ibrahim (right) and Datuk Teo Chiang Quan at the press conference

PETALING JAYA: UEM Land Sdn Bhd expects the first phase of its 365-acre East Ledang high-end residential property development in south Johor to be sold out in four months.

Managing director Wan Abdullah Wan Ibrahim said 50% of the first phase had been sold since the project was launched four weeks ago.

“We had very good response from Singaporean and Johorean buyers.

“Judging from the response, we expect to launch the second phase in the fourth quarter,” he told a press conference after Paramount Corp Bhd’s wholly owned subsidiary, Janahasil Sdn Bhd, inked a sale and purchase agreement with UEM Land for 10 acres in East Ledang.

Under the agreement, Paramount will purchase the land from UEM Land for RM13.07mil and construct and operate a private school called Sri KDU Smart School.

The first phase of the East Ledang development on 40 acres comprises 140 terrace and semi-detached units with a total gross development value (GDV) of RM97mil. The project’s total GDV is about RM1.3bil.

On the progress of parent company UEM World Bhd’s restructuring exercise, Wan Abdullah said the scheme was progressing “smoothly”.

“We hope to call for an EGM for the UEM group in July and complete the whole exercise by September,” he said.

Paramount group managing director and chief executive officer Datuk Teo Chiang Quan said the agreement gave the company the option to acquire another 15 acres within the next three years.

By The Star

IJM: Construction firms' earnings will hold up

TAN: Opposition victories in five states won't hamper IJM's earnings

IJM Corp, Malaysia's second biggest builder, said the nation's construction companies will be able to maintain profits for at least two years, dismissing concern that the government's polls losses will slow spending on public works.

Opposition victories in five states in the March 8 elections won't hamper IJM's earnings, managing director Datuk Krishnan Tan told reporters yesterday.

"It's not peaking," Tan said. "Awards may peak but jobs take two to three years to finish so one has to be clear that in terms of revenue spins, they'll be on for two to three years."

Shares of Malaysian builders including IJM have plunged on fears Prime Minister Datuk Seri Abdullah Ahmad Badawi's spending plan for roads, bridges and ports may be delayed after the ruling coalition lost its two-third parliamentary majority. The Kuala Lumpur Construction Index has dropped 9.4 per cent since March 8.

"Most of the big construction companies already have substantial order books that will take them to two years of earnings," Tan said. "If there's a delay, it will be a delay in order-book enhancement. It shouldn't affect the earnings in immediate terms."

Many of the country's large construction contracts have yet to be awarded, "so I don't see how it can peak," he said, referring to new orders.

By Bloomberg