PJD to unveil third phase of Harbour Place

Lim Lian Seng pointing to the proposed sky bridge linking Menara PJD to the Star LRT and KL monorail stations.

KUALA LUMPUR: PJ Development Holdings Bhd (PJD) targets to launch the third phase of its Harbour Place project, the Ocean View Residences, in Penang with a gross development value of RM83mil by the middle of this month.

Chief operating officer Lim Lian Seng said the project, which consists of 386 condominium units with built-up areas of 938 and 1,100 sq ft, was located on a three-acre site near Penang Sentral transport hub.

Targeted at young working adults and scheduled for completion within three years, the building has incorporated distinct green elements such as eco-friendly landscaping and “sky garden”.

This is part of the group’s compliance with the Green Building Index endorsed by the Malaysian Institute of Architects.

PJD has registered an average sales of 90% for phase one, Park View Residences, and phase two, Sea View Residences, of its 24-acre residential development.

Year-to-date, the group has registered some RM120mil sales from its one new and nine existing projects.

Among its existing projects are its flagship development – Swiss Garden Residences and Endah Promenade in Kuala Lumpur and Impian Meridien in Subang Jaya.

Meanwhile, PJD had invested some RM700,000 in a sky bridge to link its Menara PJD business tower to the STAR light railway transit and KL monorail stations, Lim said.

“We took over an abandoned serviced apartment project for about RM140mil last year and invested another RM100mil to convert it into a commercial building,” Lim said.

With an average rental rate of RM5 per sq ft, the group hoped to achieve 80% occupancy for Menara PJD in the first year of its opening in September, which would translate into a yield of at least 7% per annum, he said.

“We are in talks with various parties, including a major anchor tenant who has shown interest in leasing the whole building, and expect to close the deals within the next two months,” said Lim.

The 28-storey purpose-built business tower has 75 office suites with floor sizes from 1,335 to 29,353 sq ft. Of the 75 suites, 19 are corporate and the balance executive.

The former has more than 8,000 sq ft with attached bathroom and pantry while the latter will be from 1,367 to 8,000 sq ft. Menara PJD also consists of retail lots with built-up area of 646 to 12,487 sq ft.

Currently, PJD has some 1,500 acres undeveloped land bank in the Klang Valley, Kuantan, Johor and Penang.

For the third quarter ended March 31, PJD posted a net loss of RM1.77mil against a net profit RM9.29mil in the previous corresponding period.

Revenue dropped to RM133.35mil from RM159.15mil a year ago.

For the nine months to March 31, it recorded a 86.43% drop in net profit to RM11.47mil while revenue fell 10.61% to RM460.52mil.

By The Star (By Shannen Wong)

Dubai developer takes on additional ops

DUBAI: Dubai is giving oversight over a sprawling complex of partially built high-rises to the struggling developer of the sheikdom's palm-shaped islands, as the government works to bring its skidding property market under control.

The property developer Nakheel said yesterday in a joint emailed statement with the Dubai Multi Commodities Center that it will take control of all of DMCC's real-estate operations. Both companies are part of state-owned conglomerate Dubai World, which also controls port operator DP World and investment firm Istithmar World.

"DMCC's property-related operations have been integrated with Nakheel to better accommodate current market conditions and optimise resources and expertise," the companies said.

DMCC's property holdings consist of a 202.3-ha Dubai development known as Jumeirah Lakes Towers, as well as three skyscrapers within the project.

Several of the approximately 80 high-rise buildings in the complex are at least partially occupied, but others remain under construction. The development remains a building site clogged with cranes, cement mixers and other equipment.

Besides the complex as a whole, Nakheel will be responsible for the Almas, Au and Ag Towers, a DMCC spokeswoman said. The nearly complete Almas is Dubai's second-tallest building, rising about 1,200 ft - almost as high as the Empire State Building.

By Reuters

Naim plans eyeing major infrastructure and property projects in Sarawak

KUCHING: Construction company Naim Holdings Bhd is eyeing major infrastructure and property development projects in Sarawak Corridor of Renewable Energy (SCORE).

Senior vice-president/director Ahmad Abu Bakar said Naim was in talks with state agencies and other interested parties on several development proposals within SCORE.

“However, discussions are still at the preliminary stage,” he told StarBiz.

SCORE will be driven by the development of Sarawak’s abundant hydro and coal resources to generate electricity to power energy-intensive industries, like alunimium smelters, to be set up with the regional economic development belt.

Sarawak is now building the proposed Murum dam – which could generate about 900MW - in the upper Rejang Basin in central Sarawak. Murum is located upstream of the on-going Bakun hydroelectric dam project capable of generating up to 2,400MW.

Several other hydro dam projects have also been planned in the upper reaches of the Rejang River.

To provide accessibility to these proposed dam sites, Sarawak Second Finance Minister Datuk Wong Soon Koh said recently that six major road projects, with a combined length of 403km, within SCORE would be built.

The design for the access road from Jalan Bakun extended to Murum has been completed while other proposed access roads are still being designed.

Meanwhile, Naim was close to securing two road projects worth RM250mil in Sarawak, said Ahmad. The projects are funded by the federal government under the stimulus package.

He said Naim had an outstanding net order book of RM2.5bil that could keep the group busy in the next five years.

Its ongoing projects include a RM630mil contract from Syarikat Perumahan Negara Sdn Bhd to build some 5,000 residential homes in Kuching, Samarahan and Miri divisions, the RM310mil Bengoh dam near here, RM150mil phase one, Kuching flood mitigation project in Matang (the entire project is estimated to cost RM1.6bil), a RM188mil road project in Sibu and the proposed RM90mil Sarawak Islamic Centre project here.

Ahmad said Naim sold 633 houses and shophouses worth RM165mil last year. For the 2009 first quarter, it raked in some RM26mil from the sales of 103 such properties.

“Our target this year is to sell 800 units, 80% of them residential homes. Unsold houses (mostly high end), commerical units and detached lots are worth about RM20mil,’’ he said, adding that the company was carrying out various promotion activities to attract buyers.

Ahmad said Naim would save at least RM5mil this year through a series of cost-cutting measures introduced last year.

Naim posted a group net profit of RM83mil on a turnover of RM524mil for the financial year ended Dec 31, 2008 compared with RM80mil and RM646mil respectively in 2007.

For the first quarter ended March 31, Naim chalked up a group net profit of RM17mil on revenue of RM95mil.

Naim’s 36%-owned Dayang Enterprise Holdings Bhd contributed RM22mil in net profit to the group last year.

By The Star (by Jack Wong)

TA Enterprise to buy land for RM26m

TA Enterprise Bhd will buy a piece of freehold land in Pekan Sungai Penchala Selangor for RM26 million.

Its wholly-owned unit entered into a sale and purchase agreement with Elite Meridian Sdn Bhd yesterday for the land measuring 3629 sq metres together with a four storey commercial building with one level basement car park.

“The property is purchased for recurring rental income as well as to house some of TA Enterprise Group’s operations,” it told Bursa Malaysia yesterday.

By Business Times

Malaysian infrastructure skills sought

INDIA is seeking Malaysia's expertise to help it build two rail freight corridors linking several major cities, which will include industrial and logistic parks.

Economic counsellor with the Indian High Commission, B.N. Reddy, said the proposed project has picked up momentum in the wake of the new Cabinet after the general elections.

"Malaysian companies have exhibited their core competency in the development of infrastructure and we feel that they can expand strategic partnerships in the development of townships and industrial centres," he told a media briefing at the one-day Malaysia-India Business Conference 2009 in Kuala Lumpur yesterday.

The Indian economy, which has been expanding rapidly in recent years, has seen increased capacity of rail freight transportation.

The Dedicated Freight Corridor Corp of India, under its Railways Ministry, wants to set up industrial corridors and logistic parks along its alignment.

Under the first phase, it will develop two corridors: western linking New Delhi to Mumbai and eastern linking Ludhiana in Punjab to Kolkata in Bengal.

"Construction cost of the 2,800km railway line is estimated at US$10 billion (RM34.9 billion)."

Reddy said that Japan was financing close to 70 per cent of the construction cost of the western corridor, while the eastern corridor will be partly financed by several sources, including the World Bank and Asian Development Bank.

Cumulative Malaysian investment in India to date stands in excess of US$4.5 billion (RM15.7 billion).

The Indian government has expanded the development of infrastructure under its five-year plan to US$500 billion (RM1.7 trillion), including highways, airports and power needs.

Meanwhile, Deputy Minister in the Prime Minister's Department, Datuk S. K. Devamany, said that Malaysia was looking to leverage on India's expertise in biotechnology, tourism and business process outsourcing.

He identified India, China and the Middle East as the main markets for Malaysian enterprises to develop.

Bilateral trade between India and Malaysia was US$10.5 billion (RM36.6 billion) last year, with imports from Malaysia at US$7 billion (RM24.4 billion).

By Business Times (by Rupa Damodaran)