Sime property unit eyes 28pc profit margin

Sime Darby Property Bhd hopes to maintain its 28 per cent profit margin for its current financial year, said managing director Datuk Tunku Putra Badlishah.

"The margin is among the best in the industry," he said, adding that lady luck has been with Sime Darby Property as all its launches have had good sales.

"All our recent launches have been very successful, with 80 per cent sales rate within three months of the launch," he said after unveiling its high-end property development in Ara Damansara named "Seri Pilmoor".

Tomorrow it is unveiling another project and has at least one new property launch for the next six months as it has the confidence in the market.
Sime Darby Property contributed about 12 per cent in profit for the group.

"We hope to grow that. We were No. 1 in terms of profitability in the overall property industry and we hope to maintain that as well," he said.

On possible joint venture for property development, Tunku Putra said: "I think given the size of our land bank and the strategies that I have outlined, there are many companies that have approached us."

The company had negotiations with several interest parties, but the main criteria is that there should be some synergy in what the company does.

However, he declined to name the companies that are in negotiations now.

Sime Darby Property has the largest land bank in the country, totalling 36,000 acres.

Seri Pilmoor has a gross development value of RM469 million, it was revealed at a special preview today.

The project comprises 74 bungalow retreats from 6,500 sq ft and 34 semi-detached sanctuaries from 4,600 sq feet ensconced within 28.5 acres of landscaped elevated freehold land.

"The project was up in the website for three months and has attracted about 1,600 interest parties of a good mix but mainly locals," said Tunku Putra.

Hence, the take-up is expected to be good based on the interest.

Prices for the bungalows start from RM4.57 million with three design types and six different rooftop pavillion layouts, while the semi-detached units begin from RM2.8 million with two different pavillion layouts.

The units will be open for sale in phases, he said.

By Bernama

Green strategy for construction sector to be developed

A GREEN strategy approach tailored to suit the country's construction industry is expected to be developed at an upcoming carbon neutral conference. This is in line with the Prime Minister's commitment for a 40 per cent Greenhouse gas reduction by 2020.

Among the suggestions that will be put forward are to encourage buildings to incorporate solar panels, water harvesting and other shading materials, monitor earth work, cutting and replanting initiatives.

"We hope buildings will incorporate as many solar panels to harness solar energy because this is the way forward in doing our part to curb the global warming," said Eastern Regional Organisation for Planning and Human Settlement (Earoph) Malaysia deputy president and Rehda Institute chairman of the board of trustee, Datuk Eddy Chen Lok Loi, in Kuala Lumpur yesterday.

Rehda, Earoph Green Technology Innovation and Sime Darby Property are jointly organising Malaysia's first carbon neutral real estate conference: "The Green Solutions Property Conference 2010", which will be held on April 6 in Kuala Lumpur.
The conference is aimed at bringing together property developers, architects, project managers and green technology inventors to share crucial information on green strategies and the implication of green development.

It will also explore various means and measures the industry can adopt to play a more active role in being more environmentally responsible.

Chen said the conference is timely and vital to Malaysia's building industry.

He hopes that it will be a platform for participants to share their experience and knowledge in the pursuit to meet the international sustainability standards.

By Business Times

China property boom 'not bubble'

SINGAPORE: CapitaLand Ltd, which has Chinese properties valued at more than US$14 billion (US$1 = RM3.32), said demand in China is "strong" and the real estate boom can't be called a bubble.

Still, the Singapore-based developer said it was "comforting" that the Chinese government is taking steps to rein in the market, according to a CapitaLand presentation filed to the Singapore Exchange yesterday.

CapitaLand, Southeast Asia's biggest developer, has said it plans to expand its China business to 45 per cent of its operations within five years.

China's property prices rose at the fastest pace in almost two years in February, adding urgency to the government's efforts to damp speculation and increase the amount of affordable housing.
Residential and commercial real-estate prices in 70 cities climbed 10.7 per cent from a year earlier, the statistics bureau said on its website on Wednesday, topping a gain of 9.5 per cent in January.

To cool speculation, China is requiring a down payment for land purchases equal to 50 per cent of a plot's price, the Ministry of Land and Resources said on its website late on Wednesday.

The government in January re-imposed a tax on homes sold within five years of their purchase, after having cut the taxable period to two years in January 2009 to bolster a then-flaging market.

Bank of China Ltd said on February 3 that it had reduced discounts for some mortgages, citing concern about rising property market risks.

By Bloomberg

SP Setia bags Vietnam deal

PROPERTY developer SP Setia Bhd has in principle bagged a property project from Vietnam's Investment and Industrial Development Corp to develop a 10.8ha land in Binh Duong province,Vietnam, for a 50-year term.

In its filing to Bursa Malaysia yesterday, SP Setia said its subsidiary Setia Lai Thieu Ltd has received an investment certificate from the People's Committee of the Binh Doung Province for the establishment of Setia Lai Thieu One Member Co Ltd with a charter capital of US$6.5 million (US$1 = RM3.32).

Setia Lai Thieu One Member Co will undertake the development of Eco-Xuan Lai Thieu, which features shop houses, terrace houses, semi-detached houses, commercial centres, club house and apartments.

By Business Times

TA to sell S’pore hotel to unit

PETALING JAYA: TA Enterprise Bhd (TAE) has proposed to dispose of a 100%-owned four-star hotel in Singapore to its property arm TA Global Bhd for shares in a deal worth RM651.78mil.

Under the deal, TA Gobal will assume RM398.6mil worth of loans obtained by TAE as part of the purchase consideration.

The final purchase amount of RM253.18mil will be settled via the issuance of 506.36 million new shares in TA Global at 50 sen each to TAE.

“The proposed disposal would enable TAE to streamline its two main core businesses – financial services and property and hospitality division,” it said.

TAE group had, in October 2009, completed its reorganisation exercise which led to the listing of TA Global.

By The Star

Naim to sign pact for Libyan building project

NAIM Holdings Bhd, a Malaysian builder, said it will sign a preliminary agreement to build various facilities and amenities for a project known as Solar Oasis in Libya.

Naim will sign the agreement today in Kuala Lumpur, the company said in an e-mailed statement.

The project is on 100 hectares of land, 30 kilometers from Libya’s Tripoli city center, it said.

By Bloomberg