SP Setia plans mixed township in Ulu Langat, GDV RM3.5b

KUALA LUMPUR: SP SETIA BHD plans to undertake a mixed residential township development project in Ulu Langat with an estimated gross development value of RM3.5 billion.

The company said on Friday, Aug 12, the project would be carried out on 1,010.5 acres of freehold land which it is purchasing from Ban Guan Hin Realty Sdn Bhd for RM330.13 million or RM7.50 per square foot.

“The proposed acquisition which will be satisfied entirely in cash will not have any effect on the share capital and major shareholders of SP Setia,” it said.

SP Setia said the proposed acquisition offered “a good opportunity to tap into strong demand for attractively priced homes by first time owners and other home buyers in the Semenyih-Kajang corridor”.

It said the proposed acquisition would enable it to further reinforce and expand its core business by replicating its proven township development model in an emerging growth corridor presently not served by the group’s more matured projects in the Klang Valley.

SP Setia said it had established a solid reputation for delivering quality homes within its projects.

It cited its flagship Setia Alam township project in the Shah Alam-Klang corridor has seen the starting price for a standard 20 ft by 70 ft double-storey terrace house more than triple from RM218,000 to RM668,000 in just over seven years.

It pointed out the significant price increase achieved in Setia Alam was underpinned by the substantial investments and enhancements to the infrastructure, connectivity, amenities and overall livability of the township.

On the proposed land which it was acquiring, SP Setia said the terrain of the land is generally undulating and is zoned for mixed housing development.

It said the land was midway between Semenyih, Bangi old town and Beranang. It is 12km south of Kajang town and 25 km south of Kuala Lumpur city centre.

By The EDGE Malaysia

MRCB profit boosted by property

PETALING JAYA: Malaysian Resources Corporation Berhad (MRCB) posted a 55.4% year-on-year jump in net profit to RM19mil for the second quarter ended June 30, 2011.

In a Bursa Malaysia filing yesterday, MRCB said the higher profit for the quarter under review was mainly contributed by recognition of progress profit from the ongoing property development projects at Kuala Lumpur Sentral, including the recent sales launch of its Q Sentral strata office.

Profit was also boosted by its construction activities in Johor, such as the Permai Hospital, Eastern Dispersal Link Expressway and Marlborough College.

The group's revenue increased 25% year-on-year to RM456mil.

In a statement yesterday, MRCB chief executive officer Datuk Mohamed Razeek Hussain said more than 50% of the Q Sentral office block had been sold at record prices averaging RM1,200 per sq ft.

“Also, Kuala Lumpur Sentral, known as KL Sentral Park, which is due to be completed in the second half of the year, continues to attract strong rental interest with occupancy reaching 80%. A condominium development within Kuala Lumpur Sentral, known as The Sentral Residences, is due to be launched within the immediate month.”

MRCB said with the strong demand momentum for the group's property projects, and the active progressive works from its construction and engineering activities, it was on track to achieve the targeted revenue recognition of RM1.3bil for the current financial year.

By The Star

Govt to acquire 600 lots of land for MRT project

KUALA LUMPUR: The Government will be acquiring between 500 to 600 lots of private land for the My Rapid Transit (MRT), which is about 20% of the total land area needed.

Of these, 250 lots will be in Kuala Lumpur. The private lots would comprise residential, commercial and vacant land, a source familiar with the project said.

“The balance 70% to 80% of land required is government land,” he said at a public hearing held at Syarikat Prasarana Negara Bhd office in Bangsar. Yesterday's session was for land owners along Jalan Sultan, Kuala Lumpur, which is part of the popular Chinatown area. Their properties will located above part of the 9.5km underground stretch of the MRT which runs from Jalan Duta to Maluri, Cheras.

The Sg Buloh-Kajang line will run 51km. The multi-billion ringgit project is touted to be the largest, and potentially the most expensive, civil infrastructure project undertaken by the Government as part of the Economic Transformation Programme (ETP). It will have 27 elevated stations and seven underground stations from KL Sentral to Maluri stretch.

About 80 people attended the jam-packed meeting at Prasarana's office to voice their grouses and submit a letter of protest against stretches of the underground portion of the MRT that will come under the Land Acquisition Act 1960.

Under the Act, if the Government tunnels under a certain tract of land, it must acquire the properties above, thus compelling owners to vacate their premises.

The impending acquisition has raised concerns as it involves heritage buildings, some as old as 100 years. About 20 to 30 buildings will be torn down, a few of them being Kuala Lumpur landmarks such as Yook Woo Hin restaurant, Lok Ann Hotel, and Yan Keng Benevolent Dramatic Association building. Other larger buildings to be acquired include the old Klang bus station, formerly known as Foch Avenue, Plaza Warisan and UDA Ocean.

Prasarana project director Zulkifli Yusoff, who chaired the hearing, said land acquisition was unavoidable, adding that it was part of the Government's urban renewal plan.

“You cannot stop the acquisition,” he told the land owners.

The acquisition cost for the private land is not yet known as the prices have to assessed by the Valuation Department of the Ministry of Finance. Several meetings on valuation and compensation would be held with the private land owners beginning the middle of this month, sources say.

At the hearing, Yusoff said the Government was not destroying Chinatown but merely renewing some lots. He said Prasarana would conduct dilapidation surveys on the affected buildings before, during and after the construction process as mandated by law.

The initial ground works to prepare for the underground tunnelling has already started in three locations, Sg Buloh, Jalan Duta and Cochrane area.

Sources said tenders for the actual underground construction works would be called at the end of the year.

The tunnels will be 20 to 30 m underground, or 40 m if it has to go under the SMART tunnel. Tunnelling works should be completed by 2015 as the entire MRT has a 2016 deadline for completion.

By The Star

Daiman unit wins bid to buy land

PETALING JAYA: Daiman Development Bhd's unit Daiman Properties Sdn Bhd has succeeded in its bid to buy the Menara Landmark in Johor for RM55mil.

It told Bursa Malaysia yesterday that Daiman Properties had put in the bid to acquire the property in a public auction at a reserve price of RM55mil. The acquisition would be financed from its own funds.

The group said the building had 171,097 sq ft of retail complex, 163,339 sq ft of office tower, a car park area for 673 cars and 471 bays for motorcycles (estimated built-up area of 290,170 sq ft).

By The Star