Putrajaya Perdana confident of big jobs

Putrajaya Perdana has the experience in building zero-energy office for Malaysia Energy Centre and now working on similar concept for Malaysian Energy Commission headquarter in Putrajaya.

KUALA LUMPUR: Putrajaya Perdana Bhd is confident of securing this year at least 20% of the total RM2bil projects it has tendered for.

Chief executive officer Wie Hock Kiong said the amount represented only Malaysia-based construction projects that comprised retail offices and condominiums for the Government and private sector.

“Later this year, supported by our new major shareholder Swan Symphony Sdn Bhd, we are looking forward to bidding for projects in Iskandar Malaysia and Abu Dhabi,” he said after the company AGM yesterday.

Swan Symphony, which holds 49.13% in Putrajaya Perdana, will open the door for the construction company to expand its wings to lucrative Middle East and Iskandar Malaysia markets.

This is because Swan Symphony is a 51%-owned subsidiary of Abu Dhabi Kuwait Malaysia Investment Corp.

Wie said the company was in the midst of setting up a branch office in Abu Dhabi that would be ready by the next quarter.

Some of the projects Putrajaya Perdana can bid for in the Middle East are the US$27bil Saadiyat Island Development and the “zero carbon, zero-waste and car-free” city being planned by the Abu Dhabi government.

The company, with assistance from Swan Symphony, has signed a memorandum of understanding with Abu Dhabi-based Aldar Properties PJSC to undertake the construction, design and consultancy works of node 1 of Iskandar Malaysia.

Additionally, Putrajaya Perdana will continue to focus on the construction of energy-efficient building.

Currently, Putrajaya Perdana's order book stands at RM2.2bil, of which half has been completed.

The outstanding RM1.1bil will last the company more than 18 months.

On the rising raw materials costs, Wie said the company was trying its best to mitigate the impact through hedging and securing flexible contracts for its future projects.

“The prices of steel bars and cement have moved up significantly and going forward, we are proposing a sharing of the fluctuating raw materials costs with customers for our new tenders,” he said.

For the nine months ended Dec 31, 2007, Putrajaya Perdana reported a pre-tax profit of RM37.9mil on revenue of RM336.1mil.

Last year, the company changed its financial year-end to Dec 31 from March 31 previously.

By The Star

Putrajaya Perdana sees UAE as springboard

CONSTRUCTION company Putrajaya Perdana Bhd (PPB) is hopeful that its branch in Abu Dhabi in the United Arab Emirates (UAE) will open soon, after which plans to go big in the Gulf state can easily take off, its chief said yesterday.

Chief executive officer Wie Hock Kiong said PPB will make UAE its first overseas venture, taking advantage of the company being controlled by shareholders from Abu Dhabi.

According to PPB's latest annual report, the firm is "prospecting some potential projects in Abu Dhabi" such as the US$27 billion (RM85 billion) mixed commercial, residential and leisure Saadiyat Island development.

It is also eyeing an environment-friendly city known as Masdar City, and said "the securing of work" in the city will put the group on the global stage of energy-efficient technology.

Locally, PPB is already one of the few players in the construction of energy-efficient buildings. Wie said it will continue to play a significant role in this area.

"Naturally, we want to have a big presence in Abu Dhabi and we expect our few major projects this year will come from Abu Dhabi and Iskandar Malaysia (Iskandar)," he told reporters in Kuala Lumpur after PPB's annual general meeting yesterday.

Meanwhile, chairman Krishnan Menon said PPB has tendered for some RM2 billion of local projects, excluding the ones in Iskandar, and it hopes to have an order book of RM3 billion this year.


MENON: Putrajaya Perdana has tendered for some RM2 billion of local projects

"We currently have an order book of RM2.2 billion and the outstanding projects are worth RM1.1 billion," he said.

Menon said despite PPB's optimism of its business this year, it is still cautious of the uncertainty in the raw material prices, especially steel bars and cement.

PPB for the nine-month period ended December 2007 registered a net profit of RM30 million against a revenue of RM336.1 million. (The group changed its financial year from March to December last year).

By New Straits Times (by Roziana Hamsawi)

Mah Sing sees RM2.5b GDV from four projects

Developments to keep company busy for three to five years

MASAI: Mah Sing Group Bhd expects to generate about RM2.45bil in gross development value (GDV) from its property development projects in Johor and Penang.

Mah Sing Properties Sdn Bhd chief operating officer Ng Heng Phai said RM1.15bil would come from three projects in Johor and RM1.3bil from one project in Penang.

The Johor projects are Sierra Perdana (RM500mil), Sri Pulai Perdana I (RM500mil) and Sri Pulai Perdana II (RM157mil) in Johor while the Penang project is Southbay (RM1.3bil).

The company also has another ongoing project in Johor – Austin Perdana – but Ng did not provide its GDV.

“The Johor and Penang projects will keep us busy for the next three to five years,” Ng said at the Treasure Blitz grand draw ceremony recently.

Tan Pia Choo, a retired teacher from Meru in Selangor, won an RM88,000 office suite in Austin Perdana.

The grand prize of the upcoming premier event is a RM800,000 bungalow in Kemuning Residence, Shah Alam.

Ng said that over the period of a few months, the company had given away prizes worth RM900,000.

Including the bungalow, it would have spent RM2mil for the campaign, which is open to buyers of its 14 projects nationwide.

Ng said Mah Sing would launch Sri Pulai Perdana II before the end of the year.

Southbay, developed on a 33.18ha site, was soft-launched recently. It would have 288 link houses priced above RM755,000, three- and four-storey bungalows going for more than RM2.5mil each, retail shops, three to five-star hotels, serviced apartments and a retail mall.

Ng said Mah Sing was optimistic on the Johor property market as all its ongoing projects were located within Iskandar Malaysia.

He said the group had a total landbank of 323.73ha nationwide, adding that it would look for more land in Johor, particularly in Iskandar Malaysia.

By The Star (by Zazali Musa)

Skyscraper in Kota Baru

31-Storey twin towers taking shape

KOTA BARU: The first phase completion of a RM300mil mixed development project in Jalan Raja Dewa here in 36 months will transform the skyline of the state capital.

The Dataran Raja Dewa project was hailed as an iconic real estate boost for Kelantan with the building of a twin towers of 31 storeys, said developer Petraz Holdings Sdn Bhd managing director Datuk Dr Stanley Chew.

Datuk Dr Stanley Chew (right) exchanging documents with Kelantan State Secretary General Datuk Mohd Aiseri Alias after the signing ceremony. With them is Deputy Mentri Besar Datuk Ahmad Yaakob.

Sited on 6.3ha, the project would showcase Islamic architecture, he said after signing a memorandum of understanding between the Kuala Lumpur-based Petraz and the Kelantan government last Wednesday.

Dr Chew said Petraz had 23 years' experience in the property market with its niche in the warehousing industry in Klang, Selangor.

On Petraz’s foray into Kelantan, he said real estate was reaching saturation levels in other states while Kelantan was an emerging market.

“There is potential here so we have come to seek the opportunities while bringing about modern development to the town,” Dr Chew said.

He said the developer was discussing with potential anchor tenants including five-star hotel operators, hypermarket operators and shopping mall operators about the commercial aspect.

The shophouses would likely be leased by state government departments and local merchants, he said, adding that the first phase would be ready in 36 months and the second by 2014.

Besides bringing in new commercial enterprises and investments, the project is set to become a new landmark for Kota Baru.

The project comprises 40 units of three-storey shophouses, four blocks of five-storey office lots, twin 31-floor office lots, an eight-storey building which can house trade exhibitions and a three-storey car park.

There are also two 12-storey service apartments and 126 town houses in the project.

By The Star (by Ian Mcintyre)

Hunza spending RM10m to restore heritage building

PENANG: A heritage building in Hunza Properties Bhd's Gurney Paragon mixed development project will be modelled after the famous CHIJMES in Singapore.

Executive chairman Datuk Khor Teng Tong told a press conference recently the group had allocated RM10mil to restore the St Joseph’s Novitiate built by the Christian De La Salle Brothers in 1916.

Assoc Prof A. Ghafar Ahmad (left) and Datuk Khor Teng Tong with the report.

Also present was the company's conservation consultant, Assoc Prof A. Ghafar Ahmad from Universiti Sains Malaysia’s school of housing, building, and planning.

“This is the first time a developer in Penang is restoring and incorporating heritage structures into a mixed development project.

“We are trying to model the three-storey, 32,000 sq ft St Joseph Noviate building after Singapore's Convent of the Holy Infant Jesus, a school converted into an enclave of fine dining and retail boutiques,” Khor said.

He said one of the aims of restoring the building and opening it to the public was to educate visitors on the history of St Joseph Novitiate.

The company's restoration efforts were endorsed by the state tourism action council last year.

Khor said the conservation of the building in the Gurney Paragon project, with an estimated gross sales value of over RM1.2bil, would help raise the value of properties near it.

Ghafar said another heritage structure in the Gurney Paragon project, the 430 sq ft National Shrine of the Boy Jesus, would be dismantled, salvaged and reconstructed at a new site.

By The Star (by David Tan)

MDeC plans more cyber centres nationwide

CYBERJAYA: Multimedia Development Corp (MDeC) has received many proposals, including from state governments, to set up MSC Malaysia cyber centres, said chief executive officer Datuk Badlisham Ghazali.

MDeC had also received proposals from the private sector in several unserved areas, particularly in the Klang Valley, he said in an interview.

He said MDeC would continue to open more cyber centres, now numbering 11, in the country.

MDeC was in discussions with state governments like Sabah, Kelantan, Pahang and Perlis on the possible rollout of cyber centres, according to Badlisham.

On setting up the cyber centres, he said: “Obviously, it is not a property development activity.

“First, we look at where opportunity should expand based on the existing ICT companies.

“Second, we would like to see green field development where people from the start put up the necessary infrastructure.”

The proposed area should have 99.9% availability of power and telecommunications, such as broadband facilities, he said.

By Bernama

Moves to buy IGB's MiCasa

IGB Corp Bhd has been approached by several parties to buy all or part of the MiCasa All Suite Hotel in Kuala Lumpur.

Sources told Business Times that several parties, including listed property entities, had approached IGB to buy into the 242-suite hotel.

"IGB is exploring various options. They are looking to either sell the entire property or a stake to a strategic partner that can elevate the property to a higher level comparable to hotels like Four Seasons and Hyatt, which is opening in the area," a source said.

The property in Jalan Tun Razak could go for as much as RM230 million, the source added.

IGB officials could not be reached for confirmation.

Business Times reported in January that IGB was closing its doors to undergo a RM50 million renovation and refurbishment, and that it would consider selling the MiCasa for at least RM175 million.

The renovation was expected to take some 18 months, and the hotel would likely reopen in the middle of next year.

The 20-year-old building is undergoing an extensive upgrade of all its rooms, pool deck and public areas. It will be revitalised as a five-star luxury all-suite hotel.

IGB has a stable of hotels in various cities, including the St Giles Hotel in London in the UK; MiCasa All Suite Hotel in Yangon, Myanmar; and New World Hotel in Ho Chi Minh City, Vietnam.

The group also runs the Cititel hotel chain in Penang and Kuala Lumpur as well as the Boulevard and Cititel Express hotels.

New openings include the five-star The Gardens Hotel and Serviced Apartments at Mid Valley City in Kuala Lumpur and the St Giles in Manila in the Philippines.

By New Straits Times (by Vasantha Ganesan)

2nd Penang bridge delayed due to rising costs

PRIME Minister Datuk Seri Abdullah Ahmad Badawi said the construction of the Second Penang Bridge will be delayed following problems getting the allocated land, the best design and increasing building costs.

“Several matters have delayed its construction. Firstly in getting the land that had been allocated for building the bridge.

“Secondly, there is a need to ensure that the given design is the most suited and also the issue of cost where there may be changes due to increased prices,” he told reporters after officiating the Asia-Europe Culture Ministers Meeting in Kuala Lumpur today.

Abdullah said this when asked on why the building of the bridge was being reviewed under the Ninth Malaysia Plan (9MP).

He also said several other projects under the 9MP are being reviewed as well.

The building of the 24-km bridge linking Batu Kawan in Seberang Perai south and Batu Maung on the island has been receiving criticisms from various parties for its delay.

The original agreement between UEM Group Bhd and its consortium partner China Harbour Engineering Company (CHEC) has been extended for nine months to provide more negotiation time for them to reach an agreement that will be same with the original deal.

Earlier, UEM had given the guarantee that the building of the Second Penang Bridge will be smooth and completed as scheduled in 2011.

The bridge will be the longest in Malaysia and South East Asia once it is completed.

Last year, Malaysia and China signed a loan facility worth RM2.7 billion for the building of the bridge. The parties involved were the Government of Malaysia, Exim Bank from China and Bank Pembangunan (Malaysia) Bhd.

By Bernama

QCM Q1 net profit jumps 95% to RM7.1mil

Revenue increases 84% to RM11.38mil

PETALING JAYA: Quill Capita Management Sdn Bhd (QCM) reported a 95.5% rise in net profit to RM7.1mil for the first quarter ended March 31 and has forecast full-year net profit at RM27.33mil.

QCM, which manages the real estate investment trust, Quill Capita Trust (QCT), said revenue rose 84% to RM11.38mil for the first quarter. In the first quarter for 2007, net profit and revenue were RM3.63mil and RM6.2mil respectively.

“The increased revenue and profit were driven by QCT’s active acquisition strategy which saw the value of its portfolio grow by 134% from RM275mil at the initial public offer (IPO) stage to RM645mil currently via five new property purchases,” it said in a statement yesterday.

The acquisitions of Wisma Technip and the commercial units and car parks of Plaza Mont’Kiara for RM215mil were completed in September 2007, it added.

The acquisitions of Quill Building 5-IBM, Quill Building 8-DHL and Quill Building 10-HSBC (Section 13) were completed last month for RM94.5mil.

QCM chief executive officer Chan Say Yeong said the higher revenue included the full rental income of Wisma Technip and the commercial units of Plaza Mont’Kiara for the quarter.

“In the subsequent quarters, we will begin to fully account for rental income from Quill Building 5-IBM, Quill Building 8-DHL and Quill Building 10-HSBC, and this will further raise our revenue and profit,” he said. With the current portfolio, QCM projected the 2008 distribution per unit to rise to 7.01 sen compared with six sen stated in the IPO forecast.

QCM expected asset value to reach its RM750mil target in the financial year ending Dec 31 (FY08). With a low gearing of 25%, it said it was well positioned to raise debts to make yield-accretive acquisitions when opportunities arose.

For FY08, QCM projected net profit at RM27.33mil on revenue of RM49.32mil.

It said the projections were based on higher income from rentals and car park in accordance with the existing lease and tenancy agreement. It also assumed that leases would be renewed.

For FY09, QCM projected net profit of RM29.38mil on revenue of RM53.84mil, based on higher rental income for three new properties.

By The Star

Quill Q1 net soars, thanks to acquisition strategy

QUILL Capita Management Sdn Bhd's (QCM) first-quarter net profit ended March 31 2008 jumped 95.5 per cent, driven by its active acquisition strategy.

The manager of Quill Capita Trust (QCT), a real estate investment trust, saw its profit surge to RM7.1 million from RM3.63 million of the same period previously.

Its revenue also increased by 84 per cent to RM11.38 million from RM6.2 million in 2007.

QCM chief executive officer Chan Say Yeong said QCT's active acquisition strategy saw the value of its portfolio grow by 134 per cent from RM276 million at the initial public offering (IPO) stage to RM645.5 million currently via five new property purchases.

Chan: Sees continuing demand for quality assets

The acquisitions include Wisma Technip and the commercial units and car parks of Plaza Mont'Kiara for a total consideration of RM215 million, which were completed in September 2007.

Others are Quill Building 5-IBM, Quill Building 8-DHL (XPJ) and Quill Building 10-HSBC (Section 13), completed last month for a total purchase price of RM94.5 million.

"The higher revenue includes full rental income of Wisma Technip and the commercial units of Plaza Mont'Kiara for the quarter," Chan said in a statement yesterday.

He said in subsequent quarters, the firm will begin to fully account for rental income from the Quill Building series, thus further raising its revenue and profit.

Chan said with the current portfolio, the 2008 distribution per unit is projected to rise to 7.01 sen against six sen stated in the IPO forecast.

"We expect QCT's asset value to reach its target of RM750 million within the current financial year. With a low gearing of about 25 per cent, it is well-positioned to raise debts to make yield-accretive acquisitions when opportunities arise."

Chan added that strong demand for quality commercial assets, such as in the Klang Valley, Penang and Johor is expected to continue.

By New Straits Times