Bolton to unveil RM650m 'The Wharf'

Property developer Bolton Bhd will unveil a new commercial development in Puchong, known as "The Wharf", later this month, said its executive director Chan Wing Kwong.

The development, with a gross development value of RM650 million, is a mixed offering of boutique shop offices, service apartments and a retail shopping mall.

The Wharf would highlight green features that would capture the imagination of an ever-demanding market, he told reporters after the company's annual general meeting today.

Other projects in the pipeline include a 33-storey development, known as "Sixceylon" at Bukit Ceylon, Kuala Lumpur, comprising 215 units of luxury condominiums with a gross development value of about RM180.0 million.

Meanwhile, "51 Gurney" is a unique offering comprises 71 units of super luxury condominium with a gross development value of about RM150.0 million.

Asked on expansion plans, he said the company would continue building its strength in the Malaysian property market while consider venturing overseas in the next one to two years.
"We will look within the region," he added.

For the financial year ended March 31, 2010, the company registered a pre-tax profit of RM50.7 million, up 33 per cent, compared with 38.113 million chalked up in the same period last year.

However, revenue declined to RM257.473 million from RM292.044 million previously.

By Bernama

Bolton to start RM500m projects in 2010

Bolton Bhd, a Malaysian property developer, will start property projects this year that may generate RM500 million in sales, chairman Azman Yahya told reporters in Shah Alam, near Kuala Lumpur today.

The projects are mostly in the capital, including high-end condominiums in Bukit Tunku residential area and Jalan Bukit Ceylon, Azman said.

By Bloomberg

CDL weighs options on prime KL land

PETALING JAYA: City Develop-ments Ltd of Singapore (CDL) is considering the available options, including whether to sell the 32,000 sq ft land in Jalan Bukit Bintang in Kuala Lumpur that is owned by a wholly-owned unit of its 54% subsidiary, Millennium & Copthorne Hotels plc.

In a statement yesterday, CDL said the group had from time to time received indications of interest from third parties keen on the land. CDL will make further announcements as appropriate if and when any agreement has been entered into for the sale of the subject site,” it said.

CDL’s Malaysian unit, City Developments Sdn Bhd, had earlier planned to build a 42-storey high-end serviced apartment project, Millennium Residence, comprising 135 one-, two- and three-bedroom units on the site.

It was initially planned for launch in the first half of 2008 but the project has been delayed several times due to the soft market for high-end condominiums around the KLCC area. The parcel is located between the Grand Millennium Hotel and the Pavilion Kuala Lumpur shopping centre.

CDL, which is owned by Singapore tycoon Kwek Leng Beng, owns the Grand Millennium Hotel.

A local daily had on Wednesday reported that the selling price for the land was being negotiated for more than RM3,000 per sq ft (psf).

An analyst in a local brokerage said “if materialised, this will re-write the previous record set by Sunrise for Wisma Angkasa Raya (RM2,588psf) and recent transactions of RM2,000-RM2,200psf for landbank around the KLCC area.”

Commenting on the possible sale of the land, a real estate consultant said land around KLCC was getting scarce and although the market was still quite soft, companies with deep pockets were still on the lookout for strategic land.

“The successful bidder may have to hold the land for a while until the market gets better if it intends to build a residential project there,” he told StarBiz.

By The Star

KL Plaza to re-open as farenheit88

KUALA LUMPUR: The 27-year-old KL Plaza will be opening for business on Sunday after a refurbishment of more than RM100mil.

It will be officially launched next month, mall manager Kuala Lumpur Pavilion Sdn Bhd said.

Its chief executive officer for retail Joyce Yap yesterday unveiled two of the anchor tenants for the former KL Plaza, which has been renamed fahrenheit88, at a press conference.

These are Japan’s top casual wear brand UNIQLO and Malaysia’s Signature IT.

Both of them will be taking up 23,000 sq ft and 75,300 sq ft of space respectively in the mall, which has a net lettable area of about 300,000 sq ft, about a quarter the size of Pavilion KL.

Yap, who will be managing both malls, said there would be more homegrown brands in fahrenheit88.

“Unlike other shopping malls where the average outlet is about 2,000 sq ft, about 50% of the stores in this new mall will be between 200 and 500 sq ft. Many of them will be small and medium-sized businesses,” she said.

Yap, who is also managing Kuala Lumpur Pavilion, said fahrenheit88 would have a different appeal.

Its main target will be those aged between 18 and 35.

UNIQLO is making its debut in Kuala Lumpur after entering into a joint venture with DNP Clothing Sdn Bhd, a subsidiary of Wing Tai Asia, with a capital of RM18.8mil.

UNIQLO owns 55% while DNP the remaining 45%. The brand entered the Singapore market 18 months ago.

DNP operates more than 50 retails outlets in Malaysia carrying various brands such as Dorothy Perkins, Miss Selfridge, Top Man and Top Shop.

UNIQLO managing director Satoshi Onoguchi said there were plans to open more stores in all major cities around the world.

The expansion into Singapore in April last year marked its entry into South-East Asia.

There are currently over 900 stores worldwide.

Fahreheit88 is owned by Makna Mujur Sdn Bhd, which is owned by Pavilion International Development Fund Ltd.

The principal of this fund is Qatar Investment Authority (QIA). QIA also owns 49% of the Pavilion KL shopping mall nearby.

Fahrenheit88, formerly known as KL Plaza, was acquired by Makna Mujur for RM470mil in 2007. KL Plaza was previously owned by the Berjaya group.

By AP

Ivory to buy land in Penang for RM25m

IVORY Properties Group Bhd will buy a plot of land measuring 0.5ha in Bandar Batu Ferringhi, Penang, for RM25 million.

Ivory told Bursa Malaysia yesterday that it had entered into a conditional sale and purchase agreement with Lim Soon Hin and Lim Soon Vin for the purpose.

It plans to build 96 units of condominium with an estimated GDV of RM159 million on the land.

By Business Times

Hektar REIT: Buy, fair value price RM1.23

AMRESEARCH Sdn Bhd has maintained a "buy" call on Hektar REIT Bhd's due to its future earnings potential which are in line with expectations despite a weak occupancy.

In its research note, AmResearch said Hektar has attractive yield and defensive assets under its portfolio with a fair value of RM1.23 a unit under review pending a meeting with the management.

Hektar reported a net income of RM9 million for second quarter 2010, taking its first half earnings in 2010 to RM19 million.

Net income grew by 7 per cent on the back of 4 per cent increase in rental income. This is mostly driven by stronger occupancy in Mahkota Parade following its asset enhancement exercise.
Similarly, Wetex Parade showed stronger occupancy to 92 per cent, from 90 per cent as at end of last year.

However, Subang Parade's tenancy dropped to 95 per cent (from 100 per cent) as some of its tenants moved out, most notably Toys R US.

While this is a slight setback to the portfolio, AmResearch said this gives an opportunity for Hektar to redesign its mall concept at certain floors, thus enhancing its mall.

At current price, the REIT is trading at par to its net asset value of RM1.28 per unit and its current yield of 9 per cent remains attractive comparing against 10-year government bonds (4.2 per cent) and fixed deposit of 2.8 per cent.

By Business Times

Distressed property sales to increase

LONDON: More distressed property sales are expected in the next 12 months as changes to international regulations will likely raise the capital cost of holding commercial property on banks' balance sheets, an industry body said.

Growth in distressed property listings eased in the second quarter of this year, but are expected to worsen in the third, the UK Royal Institution of Chartered Surveyors (RICS) said yesterday, based on the results of a survey of its members.

RICS defines distressed properties as those with foreclosure orders or which are advertised for sale by their mortgagee, and which tend to fetch lower prices than their market value.

Three European countries - Portugal, Spain and Germany - were worse off in the second quarter, reporting distress in their market had risen at a faster pace.

By Reuters