Beautiful Space: Episode 5 In the lap of luxury at Sheraton Pattaya Resort

By Delia Zamir and Willy Wilson Aug 9, 2010

Beautiful Space season 2 launches its fifth episode today exclusively at StarProperty.my.
The popular and runaway favourite online series, hosted by Malaysia’s design king Eric Leong, focuses on architectural features and interior design aspects of premium hotels and resorts in Thailand.
In the fifth episode of the season, Eric dwells in a luxurious three-pavilion villa of a beach resort located by the Gulf of Thailand in Pattaya. He focuses on the exotic contemporary theme of the resort as well as usage of decor accessories, and gives viewers ideas and tips as he examines the beautiful interiors of Sheraton Pattaya Resort.
Incidentally, viewers will be able to get the chance to win a free stay at this luxurious hotel. For more information, visit EricLeong.tv.
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The sprawling triple-pavilion of Baan Sai Nam villa, Sheraton Pattaya
The fifth episode sees Eric visiting the famous Sheraton Pattaya, located in the eastern Gulf of Thailand. The architecture of the Sheraton gives the resort more of a private country club feel rather than a holiday beach resort.
Sheraton Pattaya is known as one of the city's more exclusive ocean front locations, comfortably accommodating over 150 guests with a choice of standard rooms, 'pavilions' or private villas.
Eric focuses on Baan Sai Nam villa, a premium ocean-front villa and considered as the jewel of the Sheraton. This villa is split into three pavilions - the guest room, the dining and living pavilion and the master bedroom - and the hallmark of Baan Sai Nam is its restful infinity pool and private 'sala', or Thai-style gazebo for shaded and private chilling-out time in the outdoors.
Sheraton Pattaya is famed for its personal attention to each and every one of its guests, as well as the traditional bedding 'turndown' at dusk.
This week, Eric shares with us about the importance of decor accessories to anchor a particular theme. He highlights the usage of items such as porcelain vases, artwork and smaller wooden sculptures to add character and provide the design perspective of an interior.
Going regional After making his name in his homeland, Eric, who is best known for his makeover television shows such as Casa Impian and Deko Bersama Eric, is all set to conquer the regional market.
Riding on the growing popularity of the Internet in this region, Eric believes Beautiful Space will be the right platform for him to up his game. Highlighting the advanced architecture and design of Southeast Asia is his goal.
His first stop is Thailand. With the support from Tourism Authority of Thailand, Eric is adamant that the show would be a favourite among the Southeast Asians and travelers alike. He also believes that the show is a perfect platform to lend some support to the country whose image was damaged following a political turmoil recently.

YTL Land going global

By THEAN LEE CHENG

leecheng@thestar.com.my

TAN Sri Francis Yeoh has great entrepreneurial spirit and is fully behind the Government’s plan to improve the country through innovation and technology.

“I think of blue ocean projects. But what was previously blue ocean has today become a must-have,” Yeoh says.

Blue ocean business strategy refers to strategies that an organisation undertakes by creating new demand in an uncontested market space.

The Cameron Highlands Resort is one of the pieces of real estate owned by Tan Sri Francis Yeoh.

“Whatever we do since 1955 have elements of blue ocean, be it the low-cost apartments or otherwise. If we are to build a population for the future, we will not build small five-storey walk-up apartments of about 600 sq ft and have a family of seven living in them. We are condemning them to a social slum (if we do that),” he says.

Whether it is WiMax, or plain bricks and mortar, Yeoh carries with him this big picture of what he wants to do.

Besides wiring up the nation of some 26 million, one of the must-haves that he would like Malaysia to have is that fast train connecting Malaysia with Singapore.

Yeoh believes that the connection will help to close the gap of property prices between Singapore and Malaysia.

“We have the most ‘unappreciated’ real estate. We have been very profitable in Singapore and I am not going to wait around wishing for property (prices) to go up (here),” he says.

He has indicated that he will wait for prices to improve when asked about the lack of activity in Sentul, a nearly 300-acre site the group has undertaken to develop over a 10-year period since early this decade. The last launch in Sentul west was The Maple in 2003.

The award-winning Tanjong Jara Resort with its two swimming pools.

Real estate aspirations

The group unveiled the redevelopment of the Sentul area in late-1990s, after it took over the project from Taiping Consolidated Bhd and renamed it YTL Land & Development Bhd. The plan was to redevelop Sentul and improve its connectivity with train services.

Although property prices have doubled in Sentul and in Pantai Hill Park in the Kerinchi area in the secondary market – YTL Land is developing in both areas – Yeoh is comparing property prices here with other countries in the region where prices have escalated much faster.

Like other Malaysian developers who have developed properties in Singapore, he has found the trip “very profitable.”

To take advantage of buoyant property prices in the region, Yeoh wants YTL Land to go global by leveraging on the expertise of YTL Corp Bhd. Already, YTL Land will be developing Singapore’s Sandy Island and Kasara villas in Sentosa Cove and redeveloping Westwood Apartments on Orchard Boulevard.

YTL Land’s global forays are part of its current ongoing restructuring exercise.

“By the end of this year, YTL Land will become global, with a global CEO to run it.

This will change the whole dynamics of YTL Land,” he says.

Other than in Singapore, YTL Land will also be building a US$100mil (RM338mil) boutique resort on its Koh Samui land in Thailand. That is due to open next year.

“Koh Samui will be the Mediterranean of the East. We will build hotels on the extra Koh Samui land,” says Yeoh.

The restructuring of YTL Land follows the recent consolidation of the group’s hospitality and commercial assets under its two real estate investment trusts (REITs).

The REIT thing

On a current international branding exercise, Yeoh has put his hospitality and resort assets under the Malaysia-based Starhill REIT while Starhill Global REIT (SGREIT) groups his retail malls.

Besides the group’s interest in Singapore’s Wisma Atria and Ngee Ann City, SGREIT also has interest in Japan, Australia, China and Malaysia. With him at the helm, SGREIT has expanded to cover 13 properties worth S$2.6bil in five countries.

His aim is to establish SGREIT as the main YTL-linked vehicle for ownership of prime retail and commercial properties in Asia Pacific.

Starhill REIT will be the country’s first hospitality and resorts trust with assets in Malaysia and abroad.

Starhill REIT has a market capitalisation of US$289mil as at February this year and a portfolio value of US$443mil as at June last year.

The Singapore-based Starhill Global REIT has a market capitalisation of US$747mil as at February this year and a portfolio value of US$2.1bil as at February.

He has injected Niseko Village, which he recently bought for about RM205mil, into the Starhill REIT. The 617-ha ski resort is in Hokkaido, Japan.

He also has The Muse Hotel in Saint Tropez, France which, soon after its relaunch, has become one of Europe’s 20 most popular new hotels. He bought that for between 20 million and 30 million euros.

“Niseko will be the Aspen of the East. We bought into Saint Tropez in France because we wanted to take a French brand back to Asia. St Tropez will be the window to (our assets here),” says Yeoh whose assets, besides Wessex Waters in Britain, tend to concentrate in Asia. He has The Chedi, a resort in Phuket.

He may soon be an acquisition trail globally for real estates.

On the home turf, he already has some award-winning real estate. This includes Pangkor Laut Resort, Tanjong Jara Resort and Cameron Highlands Resort. His hotel brands are Ritz-Carlton, Spa Village, J W Marriott and The Majestic in Malacca.

The group also has Malaysia’s fastest growing cement company in the country. It is the first ready-mix concrete company and the second largest cement company in Malaysia with annual production capacity of 6.1 million tonnes.

YTL Cement has regional expansion plans and is evaluating investment opportunities in Indonesia and China. In 2008, it acquired 100% of China’s Zhejiang HangZhou Dama Cement.

Lease on island owned by Tonga king goes up for sale

The lease on a tropical island owned by the king of Tonga has been put on the market in a receivership sale.
Although the king -- George Tupou V -- has issued a proclamation that Nukunamo Island cannot be mortgaged or used as security "for any purpose whatsoever", the receivers believe they can sell the 99-year lease.
The lease on the island was held by a first cousin of the Tongan king, Koloiana Naufahu, but was taken over after Naufahu failed to meet loan repayments to the Westpac Bank of Tonga.
The sale-by-tender advertisement, posted on the Matangi Tonga website on Thursday, says the island is being sold by the court-appointed receiver of Kololiana Naufahu.
The lessor of the island, which covers more than 66 acres (27 hectares), is listed as "His Majesty George Tupou V King of Tonga".
The rent for the successful lessee is 16,000 Tongan Pa'anga (7,900 US dollars) and the property is offered on an "as is where is" basis.

A popular event: CIMB Property Mart Home Fiesta

Attractive offers: Booths at the event were popular amongst visitors
The CIMB Property Mart Home Fiesta auction event stretched beyond property bidding alone. The event was held on last Saturday, August 7, 2010, at a hotel in the city. More than 300 property enthusiasts turned up for the event. Among the key highlights were exclusive talks by Feng Shui expert, Ms Joe Choo, who co-writes on property Feng Shui with Master David for The Star on every Friday.
Even before the talk started, seats were quickly snapped up. A hot favourite was the auction sessions which were packed with anxious registered bidders and curious first-timers who joined in to witness a live auction. A total of 46 out of more than 100 properties in Klang Valley, including apartments, condominiums, landed residential properties and shop lots were auctioned off to proud owners and investors, accumulating to RM4.1 million in value.
The excitement continued as successful bidders were given the chance to take part in the Home Fiesta Makeover contest which runs from August 7 to December 18. One lucky winner from the pool will walk away with RM1,500 worth of Dulux paints, courtesy of ICI Paints Malaysia.
Live auction: The live auction at CIMB Property Mart Home Fiesta was a crowd-puller
Attendees were also treated to light refreshments, followed by great bargains from participating merchants such as Floor Depot, ICI Dulux, StarProperty.my and many more.
Apart from welcome goodies from CIMB Property Mart, visitors were seen queuing to try their luck at the games corner. A dedicated consultation section was also popular with visitors, who were assisted on their queries pertaining to property, mortgages and other CIMB Bank services. The event ended with lucky draws for 10 winners worth over RM1,000.
StarProperty.my rewards its membersVisitors who signed up as a StarProperty.my member at the event were entitled to five free online property listings, which is valid for three months. This reward was in conjunction with StarProperty.my's first anniversary celebration. Additionally, current members of StarProperty.my were also given the five free listing, which has been automatically credited into members' account. The three-month free listing period began from August 11, 2010. The offer has ended, but if you would like to sign up as a StarProperty.my member, click here. Members will be able to view the latest property listings, use the property tracker tool and be updated via e-newsletters, amongst others.
The next property mart home fiestaMany visitors took the opportunity to register for the next CIMB Property Mart Home Fiesta event, which is scheduled for September 4, 2010, from 9am – 1pm at Hotel Istana, Kuala Lumpur. Ms Joe Choo will be present to share more tips on ‘Enriching Your Property with Feng Shui’ and CIMB Property Mart will conduct yet another signature auction event. For registration or more information, contact the CIMB Property Mart hotline at 1-300-88-0811.

The money is in realty (Part I)

Property developers have topped a Hong Kong rich list, according to Forbes magazine. The city’s wealthiest are now worth US$135 billion, up from US$82 billion a year ago, but still well below the peak of US$179 billion in 2008.
As China goes, so too does Hong Kong these days, usually for the better but not without risks, as evidenced by the Hang Seng's recent pullback in response to the Chinese government's plans to tighten lending.
This is particularly true for the city's richest businesspeople, who have largely been upping their bets on the mainland, investing billions in buildings, shops and hotels. Peter Woo's Wheelock is finishing construction on one of Shanghai's tallest towers. Hang Lung Group, run by Ronnie Chan, gets 40 per cent of its rental income from Shanghai. Over a dozen of Hong Kong's 40 richest have substantial real estate investments there.
The mainland has also bolstered fortunes in Hong Kong and Macau as affluent Chinese tourists spend their money in the city's stores, hotels and casinos. All of this has helped push up the total net worth of Hong Kong's richest.
Li Ka-shing is again the city's richest, gaining US$5 billion, though still worth a lot less than his 2008 estimate of US$32 billion. Not one list member is poorer. Twenty-four of the returning tycoons added at least 50 per cent to their net worths.
Forbes’ list was compiled using shareholding and financial information obtained from the families and individuals themselves, stock exchanges and analysts. Stock prices and exchange rates were locked in on 22 January. Private companies were valued based on comparison with prevailing earnings or other financial ratios.

Hong Kong Billionaires
1. Li Ka-shing, 81, widowed, 2 children, US$21.3 billion His Cheung Kong paid US$100 million for shares in Russian aluminium maker Rusal ahead of its January Hong Kong listing; his Hutchison Whampoa offered US$545 million to take its telecom subsidiary private. Li's been buying up shares in both firms. Oil firm Husky Energy, in which he has big stake, made another big gas discovery in the South China Sea in 2009.
Li Ka Shing
2. Lee Shau Kee, 82, divorced, 5 children, US$19 billion Lee's wealth rebounded, thanks in part to doubling share price of his property firm, Henderson Land. Active investor with stakes in such outperfomers as China Shenhua Energy. Chairman of Hong Kong & China Gas, which distributes gas in more than 90 cities.
Lee Shau Kee
3. Kwok family, US$17 billion Walter, who ran family's property firm Sun Hung Kai Properties for 18 years before being replaced by his two younger brothers, Thomas and Raymond, in 2008, dropped his lawsuit alleging improper dismissal last year and is now a non-executive director. Mother, Kwong Siu-hing, is non-executive chairman. The firm is finishing construction of Hong Kong's tallest building, the International Commerce Centre. It opened a replica of Noah's Ark in Hong Kong in May as a tourist attraction.
Kwok family
4. Cheng Yu-tung, 84, married, 4 children, US$7 billion His New World Development, which launched a Facebook page in December, reportedly hired bankers for upcoming debt road show. Cheng's personal investment firm bought stakes in Ming Fung Jewelry, New Times Energy, property firm Evergrande.
Cheng Yu-tung
5. Joseph Lau, 59, divorced, 4 children, US$6 billion One of Hong Kong's biggest landlords kept occupancy rates above 90% at his Chinese Estates despite downturn. Launched first development in Chengdu. Spent $9.5 million for a 7.03-carat blue diamond, which he renamed "Star of Josephine" after youngest daughter.
Joseph Lau
6. Michael Kadoorie, 68, married, 3 children, US$5 billion Power generator CLP is still core of Kadoorie's wealth, but Hongkong & Shanghai Hotels generated some of best returns last year. It opened the Peninsula in Shanghai, the city where the family got its start before leaving in the wake of the Communist revolution. It took control of the Peninsula in Chicago.
Michael Kadoori
7. Peter Woo, 64, married US$4.2 billion Wheelock, whose main subsidiary, the Wharf (portfolio includes Hong Kong's Times Square, Harbour City), rebounded along with real estate sector. The group is close to finishing one of Shanghai's tallest structures in prestigious Jing'an district. Its I-Cable is bidding for a free-to-air broadcast licence, the city's third.
Peter Woo
8. Chen Din Hwa, 87, US$3.2 billion His Nan Fung Group first made money in textiles; it is now a property developer, with interests also in shipping. Partnering with HSBC to invest in property in China, the two recently formed a venture with UK's Tesco to invest in malls. Chen owns minority stake in Sino Land.
Chen Din Hwa
9. William Fung, 60, married, 1 child, US$3 billion
William Fung
10. Victor Fung, 63, married, 2 children, US$2.9 billion Outsourcing giant Li & Fung just signed an agreement to act as a buying agent for Walmart. Last year, it picked up Liz Clairborne's sourcing operations in Asia, became exclusive sourcing agent for Talbots, and bought children's apparel maker Wear Me and footwear supplier Shubiz. William, who was named to Singapore Airlines board in January, is managing director; brother Victor, a US citizen, is chairman. Possible successor: Victor's son Spencer, an executive director. The brothers own stakes in newly public luxury men’s wear retailer Trinity.
Victor Fung
11. Chee Chen (CC) Tung, 66, married, US$2.89 billion The family's shipping firm, Orient Overseas, lost US$231 million in the first half of 2009. Its stock jumped in January after it sold US$2.2 billion worth of mainland property. CC has headed Orient since brother Tung Chee Hwa stepped down to lead Hong Kong's government between 1997 and 2005.
CC Tung
12. Ronnie & Gerald Chan, 60/58, US$2.6 billion Hang Lung Group, the property developer that Ronnie heads, gets more than 40 per cent of its rental income from Shanghai, through such landmarks as Plaza 66. It uses the same digits on other mainland projects in Dalian, Tianjin and elsewhere. Gerald leads the family's Morningside Group, with interests in media, Internet and life sciences.
Ronnie Chan
13. Michael Ying, 60, married, 3 children, US$2.5 billion The former chief of Esprit steadily reduced his stake in the apparel maker, pocketing close to US$2 billion over time. He retains almost 9 per cent in the company, which just reported its first annual profit decline in a decade. Said to be an amateur palaeontologist, he is married to former Taiwanese actress Brigitte Lin.
Michael Ying
14. Richard Elman, 69, married, 4 children, US$2.3 billion The British national has run commodities trading firm, Noble Group, from Hong Kong for more than two decades. He recently sold part of his stake to a Chinese-government-owned investment firm; he still has 24 per cent. Elman grew up in Brighton; he quit school at 15. He worked in scrap business in the US, Japan, Thailand, and India. Later, he became the regional director of commodities trader Phibro.
Richard Elman
15. Patrick Lee, 66, married, 5 children, US$2.25 billion The net worth of Lee & Man Paper's founder, which dropped from US$3.2 billion to US$485 million last year, has more than quadrupled as stock recovered strongly, making him the year's biggest percentage gainer. The group's delayed Vietnam expansion is apparently back on track.

The money is in realty (Part 2)

Article and photos courtesy of LIVE IN Magazine Jul 21, 2010

We ran through the top 15 richest men from Hong Kong last week. Let's have a look at the rest in the list.
Forbes’ list was compiled using shareholding and financial information obtained from the families and individuals themselves, stock exchanges and analysts. Stock prices and exchange rates were locked in on 22 January. Private companies were valued based on comparison with prevailing earnings or other financial ratios.
16. Michael & Patrick Wu, 72/71, US$2.13 billion The cousins cashed out at the top of the market, selling the family's Wing Lung Bank, which they ran together, to China Merchants Bank for three times the book value in 2008.
Michael and Patrick Wu
17. Stanley Ho, 88, married, 17 children, US$2.1 billion The fortunes of Macau and its casino king are rebounding, thanks to the new political leadership in the gambling mecca and hopes for economic recovery. His SDTM (Sociedade de Turismo e Diversões de Macau) bought Mandarin Oriental Hotel in Macau last year, renaming it Grand Lapa. He also has real estate in China. Ho was hospitalised briefly late last year, causing speculation about the succession of his empire.
Stanley Ho
18. Tang Yiu, 74, married, US$2 billion Tang is the founder of Belle International, China's largest retailer of women's shoes with about 7,000 stores. Its Hong Kong-traded shares tripled this past year on strong consumer spending. Tang and other executives sold some shares in December. He shares his fortune with daughter Tang Ming Wai, the group's executive director, to whom he lately transferred more shares.
Tang Yiu
19. Vincent Lo, 61, married, 2 children, US$1.95 billion His wealth rebounded thanks to improving fortunes of his property developer Shui On Land, best known for its Shanghai Xintiadi development. He has announced plans to find a successor in the next year though he says he'll remain chairman. He also heads cement producer Shui On Construction. Lo took over two hotels in Shanghai in late December. He is a member of the Chinese People's Political Consultative Conference, and a director at Hang Seng Bank. He remarried, to former Miss Hong Kong 2008, and recently bought a plane.
Vincent Lo
20. Li Sze Lim, 51, married, US$1.9 billion The stock of Guangzhou R&F Properties, of which he is chairman, jumped along with China's property market. The Math major is a part-time professor at Sun Yat-Sen and Jinan universities.
Li Sze Lim
21. Or Wai Sheun, 58, married, US$1.8 billion His Kowloon Development recovered from investment losses in 2008 in part through successful sales of luxury projects in Hong Kong, Macau. He is working with Hong Kong's Urban Renewal Authority and Hong Kong Playground Association to create a combination sports stadium, youth centre, commercial complex and residential tower.
Or Wai Sheun
22. David Li, 70, married, 2 children, US$1.55 billion His Bank of East Asia is back on track after the 2008 run on shares due to discovery of undisclosed derivative trading losses. Its stock soared on news that Malaysian billionaire Quek Leng Chan upped his stake in an apparent takeover attempt. The Bank of East Asia then issued shares to two other banks in a defensive move that diluted existing shareholders.
David Li
23. Francis Choi, 63, married, 3 children, US$1.5 billion He made his initial fortune in toy manufacturing, and now owns dozens of properties in Hong Kong, including parking lots, malls and homes. His other assets include shares in Regal Hotels, Town Health and cars; he is expecting delivery of a new yacht this year.
Francis Choi
24. Lui Che Woo, 80, married, 5 children, US$1.47 billion The construction tycoon who got a Macau gaming licence is again a billionaire, thanks to the rebound in his Galaxy Entertainment. He upped the budget of his mega-resort on Cotai by 40 per cent, and plans to look for funding for the resort, now expected to open in 2011. He also leads property firm K Wah International.
Lui Che Woo
25. Helmut Sohmen, 70, married, 3 children, US$1.39 billion The Austrian national settled in Hong Kong almost 40 years ago. He chairs BW Group, one of the world's largest maritime groups. His wife is the daughter of the late shipping tycoon Yue-Kong Pao.
Helmut Sohmen
26. Richard Li, 42, single, 1 child, US$1.3 billion His telecom, PCCW, dropped its US$2.1-billion privatisation plan after the deal ended up in court. It later issued a special one-time cash dividend to shareholders, including Li. He formed a joint venture with China's Caijing magazine to start a news service, and is negotiating to buy AIG's asset management business for US$500 million. His girlfriend, Isabella Leong, 21, a former actress, gave birth to a boy in April 2009.
Richard Li
27. Alfred Chan & Edward Tan, 62/66, US$1.29 billion The brothers, who spell their surname differently, successfully listed in December their luxury department store operator, PCD, which Alfred chairs. Canadians by nationality, the Hong Kong residents already had success with luxury fashion retailer Ports 1961, listed since 2003, which also operates stores in China for BMW.
Alfred Chan
28. Lee heirs, US$1.25 billion Peter Lee, long-time head of the largest commercial landlord in Hong Kong's busiest shopping district, Hysan Development, died in October. His cousins Anthony Hsien Pin Lee, Chien Lee, and Deanna Ruth Tak Yung Rudgard, with whom he shared the fortune, are overseeing the transition of business founded by their grandfather Lee Hysan.
Peter Lee
29. Hui Sai Fun, US$1.2 billion With his family, he operates Central Development, the owner of valuable Hong Kong properties, including the Central Building.
Hui Sai Fun and wife
30. Patrick Wang, 59, married, 4 children, US$1.15 billion His fortune doubled, thanks to the improved outlook for his Johnson Electric, maker of automotive micro motors. He opened a factory in Chennai in January, and secured a US$400-million loan in December to be used to refinance debt. Johnson chief executive, his mother Yik-Chun Koo Wang, is the honorary chairman, with his two brothers and a sister sitting on the board.
Patrick Wang
31. Lo Ka Shui, 62, married, 4 children, US$1.1 billion The brother of Vincent Lo, he runs property developer, hotel operator Great Eagle, and opened a Langham boutique hotel in Shanghai 2009.
Lo Ka Shui
32. Allan Wong, 59, married, 2 children, US$1.06 billion He co-founded Video Technology in 1976 to make home TV game consoles. Today VTech, which he heads, is one of world's largest makers of cordless phones, and is number one in the US. It also makes electronic educational toys.
Allan Wong
33. George Wong, 58, US$1.05 billion He and three brothers own property developer Chyau Fwu Group, with hotels and residences in Asia and Europe. His father built up the family business in Taiwan before moving its headquarters to Hong Kong.
34. Pong Hong Siu Chu, 88, widowed, 7 children, US$1 billion She co-founded Shiu Wing Steel with her late husband, Pong Ding Yuen, in 1950. It is now Hong Kong's only remaining steel producer. Most of the family fortune comes from its 1997 property sale. Despite her age, she still goes to the office.
Source: forbes.com
Note: This article is republished with permission from Ericane JC Communications Sdn Bhd, an associate company of Ericane & Webb Sdn Bhd and publisher of Live In magazine. Live In combines both property and home décor - a natural marriage of property information and interior décor ideas to realise a beautiful, comfortable home.
The 272-page Live In magazine is published every two months and is available at major bookstores.

Interview with David Ong, founder and president of Reapfield Properties Sdn Bhd

David Ong
David Ong, 55, was recently awarded Man of the Year 2009/2010 at the MIEA (Malaysian Institute of Estate Agents) National Real Estate Awards. Ong founded the company 25 years ago and his expertise lies in building the business through recruitment, training and development – which forms a big part of Reapfield’s business model. To date, Reapfield has 13 offices and 750 agents. He credits his success to his great team.
Congratulations on winning Man of the Year 2009/2010! Would you like to say anything with regards to your win, and also your agency's win in many of the categories? The awards are a testimony of the commitment from each member of the Reapfield family. It would not have been possible without the whole group’s drive and support. We feel honoured and humbled by these wins. We hope that through the awards and recognition by the real estate industry, we are able to contribute positively to the industry and share what we have learnt over the last 25 years with humility with the intention of lifting the whole industry to a new level. The real estate industry is huge.
We want to continuously learn and positively help the industry in unison to move it to a new level so that the industry flourishes. The industry is still at its infancy as compared to many parts of the developed world. We have to drive the industry through visible, quantifiable results. Only with this are we able to convince more consumers to use our services and see our services not as part of their cost, but a profitable exercise.
We believe that in whatever we do, we need to perform the best we can in varying market conditions through adaptation and applying cutting edge wisdom. We are in the people development business and we need to know that we are able to develop our people to the best possible standards and entering awards is one way of making sure that we remain the best in the industry.
Results don’t lie and awards are surely a fair yardstick or a measure of success for the specified categories.
How do you differentiate Reapfield’s agents from the rest? We see our agents as an asset that has not been shaped to their full potential yet and it is our responsibility to discover their fullest potential so that these agents are able to fulfil their dreams. Our leaders have a genuine interest in the agent’s welfare, both at work and at home. Because of the way we conduct our business and the values we subscribe to, we will inevitably attract agents who are attracted to those values. Our responsibility is to continue to build on this culture which we have done so for the last 25 years. We focus on the importance of continuous growth and conducting business with utmost integrity and excellence.
What is your immediate vision for the company? The immediate vision of the company is to continue to attract agents who subscribe to similar business values. That is one of the immediate goals of the company. This is because successful agents attract potential candidates who also ascribe to this success. This vision will be accomplished by maximising the potential of our existing agents and enhancing their productivity.
What are your hobbies and passion (apart from the real estate)? What do you do to relax? Swimming, walking and travelling.
You have three daughters. Do you see them taking over the business? There are many successful corporations who are run very successfully by siblings and there are equally many others which started off as family businesses and continued to flourish under the leadership of quality leaders. Keeping an open mind on this issue, while assessing the needs of the times, will determine the most appropriate decision when it requires one.
You started Reapfield with your wife in year 1984. How did you start from then, into building the brand into what it is today? I was not in real estate prior to 1984. It came about because one of my parent’s neighbours needed an agent to sell their property. I took on that task and was amazed by the results, on what was achieved through what seemed like simple work.
The real estate industry involves the provision of a basic necessity in life. Building on this universal need seemed like a wise way to build my future. Property has proven itself to be one of the best investment instruments.
Reapfield has gone through many different life cycles. In the last 25 years, we built on the basic premise that we are here to equip and develop our key stakeholders, our agents, to serve our customers. These agents needed to have a platform where they could grow and we wanted to be that platform. Building a brand such as Reapfield was not an overnight process but a continuous process where it required united team work from all involved, most importantly, the leaders, the agents themselves and all the supporting staff. We are genuine and clear about our intentions and that, coupled with great financial success stories of our key agents, Reapfield is now a Superbrand and consumers recognise Reapfield as Malaysia’s number one choice for their real estate agency, based on a survey conducted by the Nielsen group.

Iskandar research centre gets RM500mil from China

By ZAZALI MUSA zaza@thestar.com.my Aug 10, 2010

JOHOR BARU: Iskandar Malaysia Universiti Teknologi Malaysia Research Centre (IMrec) has attracted RM500mil from five Chinese investors.
Executive director Prof Abdul Ghani Khalid said the investments would be for new technologies
and research and development (R&D) activities of Iskandar Malaysia.
He said they were mainly for applications and usage of energy saving and green technology for building, street lighting, electrical transformer and industrial building system.
Ghani said the investments were secured during a one-day workshop and exhibition on new technologies and R&D for Iskandar held last week.
“More Chinese investments in technology-related and R&D activities are coming.
“The R&D activities will be on joint-collaboration with IMrec,” he said on Saturday.
Ghani said this at a symposium on Advancement of Construction Management and Real Estate: Towards Sustainable Development of International Metropolis.
The symposium was jointly organised by IMrec and Chinese Research Institute of Construction Management.
Ghani said IMrec officials and Universiti Teknologi Malaysia researchers would visit Beijing before the year-end to hold meetings and discussions with Chinese researchers as well as to attract more investors to Iskandar.
He said the Chinese and UTM researchers would improve on existing technologies from countries such as Germany, Japan and South Korea.

Aug 4, 2010

Malaysia's first retirement transformation initiative launched

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Discussion forum on future retirement of Malaysia. From L-R: Preedeben Kannan, Datuk Yeow Chin Kiong, Professor Ong Fon Sim and Datuk Dr Zainal Aznam Yusof.

KUALA LUMPUR: The inaugural RETIREMENT TRANSFORMATION CONFERENCE 2010 (RTC) was held yesterday to realise a comprehensive initiative aimed at redefining the retirement industry in Malaysia.

The conference was held to create a platform to bring together the different stakeholders pertaining to retirement such as from the government, private sector, NGOs, financial institutions and academics. Prominent speakers include Datuk Dr Zainal Aznam Yusof, Datuk Michael Yam, Professor Ong Fon Sim, Mohamed Akwal Sultan and many more.

The aim is to share and learn, debate and strategise as well as tackle retirement issues including social security, medical care, promoting lifelong learning and productivity post-retirement and an appreciation of the retirement mindset.

The intention of this conference is to assist the government’s initiative of adopting a policy of extended employability beyond the present retirement age, and in the process optimising our senior talents – a policy which can be applied effectively by both the public and private sector.

The eventual aim of the conference is to help facilitate the government in establishing a comprehensive blueprint and set of policies to improve the care of senior citizens and to initiate the development of retiree-centric financial products and services, investment planning and protection.

The RTC covered key issues which are pertinent for the retirement industry to move forward in the next few years. These include issues on economic security for retirees and financial preparedness as well as tax incentives and financial products specific for retirement in Malaysia.

The other issues include human capital deployment and employment opportunities as well as the development of quality and affordable health care and retirement living opportunities in Malaysia.

Participants of the conference heard success stories from pioneers of the ageing market and discussions of best practices, commercially viable regulatory, business models and case studies in property development, retirement living and aged care services, healthcare and wellness services, retirement education, employment, financial services, media and business branding that will benefit from capturing Malaysia's ageing baby boomers.

By EUGENE MAHALINGAM
eugenicz@thestar.com.my | Aug 7, 2010

Malls, more malls everywhere Klang Valley will be flooded with retail centres, adding pressure on rental rates

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WITH the opening of 20 malls in the Klang Valley with a total net floor area of 4.4 million sq ft this year, the retail property market is likely to face an oversupply situation with pressure on rental rates, property consultants say.

Many shopping mall projects that were put on hold are back on track, and shoppers can expect to see a plethora of new retail centres on the horizon, especially within the Klang Valley area, comprising Kuala Lumpur, Selangor and Putrajaya.

According to statistics by the National Property Information Centre, as at March 2010, there were currently 49.98 million sq ft of existing retail space within the Klang Valley. Another 7.18 million sq ft is under development and 7.5 million sq ft of new space under planning.

Henry Butcher Retail managing director Tan Hai Hsin believes the new malls that are coming on stream will create an oversupply situation in the market.

“With the completion of at least 20 retail centres this year, the retail property market share will be squeezed,” Tan says, adding that the negative impact will be focused on certain locations with multiple malls.

“For example, the retail market in Cheras will be even more competitive when at least five new retail centres enter the market this year. In Subang, existing shopping centres are facing more challenges with four new players.”

He says newly-completed shopping centres will face pressure on rental rates.

“There are indeed too many malls within the Klang Valley. Newly-opened shopping centres in the last few years have been facing problems in securing sufficient tenants and shoppers. Many of their problems are due to market saturation, not the financial crisis.”

However, not all new malls will be casualties, even when there are already other existing, established shopping centres within the vicinity, says Malaysian Association for Shopping & Highrise Complex Management member Richard Chan.

“The Wangsa Walk Mall was opened in August last year in Wangsa Maju. Despite several prominent shopping centres (Jusco, Giant and Carrefour) already established within the area, retail space for the new mall (Wangsa Walk) has been fully taken-up,” he says.

A new mall can always be successful if it can meet the needs and wants of customers that were not met by existing shopping centres, he says, adding: “Malls are taken up because of a retail gap that cannot be met by the other malls. If you can fill up this gap, to the point of attracting the crowd from far away areas and meet the demands of the people, it will be a success.”

Chan cites KB Mall in Kota Baru, Kelantan, which is attracting customers from as far as Thailand.

“People from Thailand are going to the mall to get things that they cannot get in their own areas,” he says.

Khong & Jaafar Sdn Bhd managing director Elvin Fernandez believes that the success of potential new shopping centres is dependent on two key factors – their management and locations.

“Mall developers should conduct a study and understand the market before constructing.

Sometimes, they (the developers) will own part of the mall, say 50%, and divest the rest to different parties to manage. When that happens, you lose control,” he says.

Chan concurs that the number one criteria for the success of a shopping mall is management, rather than location. He says the next most important requirement is “accessibility.”

“The Mid Valley Megamall in Kuala Lumpur is strategically located but would it be successful if it didn’t have all those roads surrounding it? Your shopping centre might be in a good location but it would be pointless if it can’t draw the crowds,” he adds.

Fernandez says rental rates of downtown shopping centres (namely Suria KLCC and Pavilion in Kuala Lumpur) and suburban shopping centres (like Mid Valley in Kuala Lumpur, One Utama and Sunway Pyramid in Selangor) have been holding steady for a while.

Even during the global economic crisis, rates remained fairly steady and we expect them to remain steady for the remainder of 2010, he says, adding that he does not expect a “shoot-up” in rates.

According to Fernandez, rent for average prime space at downtown and suburban shopping centres are currently averaging RM50-RM60 per sq ft and RM30-RM35 per sq ft respectively.

“(Healthy) consumer spending and (good) tourism levels have managed to help keep the (retail) rates up,” he says.

With the improved economic conditions, the outlook for the retail sub-sector in Malaysia seems positive, regardless of the multiple malls, Chan says. “There are more festive holidays in the second half of the year and shopping malls also tend to have sales (in conjunction with the holidays) and year-end sales that will help boost business for the (retail) segment.”

Tan believes that the local retail industry will grow by 5% this year, with total sales turnover expected at RM74.6bil.

By ANDREW LEE
andrewlee@thestar.com.my | Aug 7, 2010

REIT vs direct real estate investment

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INVESTING in real estate can be tricky.

For a start, those who intend to make a quick buck by “flipping” property within a few months will find that it is risky, especially in a property market less buoyant than in Hong Kong or Singapore.

The alternative is hard work, that is, managing residential properties (and absorbing all the hidden costs that come along with it) as long term investments, receiving rent and selling them off for a capital gain or profit.

Another factor that may deter investors from real estate is the difficulty in raising enough capital to purchase a particular property.

So, should you consider putting your money in a real estate investment trust (REIT) instead?

Granted, a REIT does not comprise residential property, but if it is profit you are interested in, it may be an option.

REITs originated in the United States in the 1960s, but it wasn’t until 2005 that Axis REIT became the first property trust to be listed on Bursa Malaysia.

In Malaysia, there are now 14 REITs to choose from on the Main Market, offering investors a choice to own stakes in commercial, industrial, plantation and office real estate.

Aside from being more liquid than investing in real estate, one of the reasons why REITs are more appealing than investing in actual real estate is because of its high yield.

Gross dividend yield in the FTSE Bursa Malaysia index is about 2.9%, while the average yield for a REIT in Malaysia is about 8%.

REITs yield higher returns because commercial real estate generates a huge amount of cash flow from rentals.

If one invests in real estate though, it may be hard to charge the most preferred rental rate, even if the property had been purchased for a hefty price, simply due to market forces.

As for REIT prices on the stock market, they generally tend to be “low risk” because their prices are sustained by the yield factor, hence the volatility element is reduced.

Even so, REITs are not immune to economic difficulties.

REITs such as AmFirst, Hektar, UOA and Axis hit their lowest point in the middle of the financial crisis in 2008 but have since recovered to their pre-crisis prices, if not better.

Part of their recovery, says an analyst, is due to good management, good investor relations and a proven track record when it comes to acquisitions.

Still, one critic of REITs says it is probably more worthwhile to purchase stocks of established companies if they want to play safe.

Advocates of the property trust point to the fact that REITs are a different investment class altogether, choosing to view them as an investment that bridges the gap between a fixed deposit and the stock market.

One drawback of REITs is their inability to benefit from capital gain, unlike real estate.

But with REITs, returns may be secured with less risk which make them a nice way to take advantage of the big booms in the real estate market.

Investors can do without taking on the risk of mortgage payments, unscrupulous tenants and rising tax rates.

However, less risk obviously comes with less reward.

Good capital appreciation is still the main factor driving demand for landed residential properties.

Since 2008, there has been an annual compounded growth rate of 10% for capital appreciation in residential hotspots such as Petaling Jaya, Taman Tun Dr. Ismail and Mont Kiara.

A home can go up in value ten-fold given the right market conditions, which would give one a hefty sum of money right into his or her pocket - this won’t happen with any REIT.

Ultimately, for someone who wants to have more control of their assets and is willing to improve their value, investing in residential real estate can be a good choice.

For someone looking for passive real estate investment, with the added benefits of portfolio diversification and liquidity, a REIT is a good option to consider.

Think of them as allowing investors to be exposed to the real estate market without having to fork out as much capital.

Alternatively, REITs could be purchased as part of a balanced portfolio, until one has enough capital to enter the real estate market.

Early bird gets the best pick

Buyers registering for Tree Residency enjoy exclusivity
JEREMY TAN north@thestar.com.my
SPACIOUS homes imbued with contemporary elegance characterise Phase 3 of Ideal Homes Properties' One Residence project in Bayan Lepas, the Tree Residency.
It will be open for registration at the Star Property Fair 2010 at G Hotel and Gurney Plaza from Friday till Sunday, with its soft launching scheduled for September this year.
Its general sales and marketing manager Nancy Teo said early birds who register their interest would enjoy exclusive packages and have first pick of the phase's 316 units upon launch.
The units come in three designs — link house, courtyard superlink and semi-detached — with built up areas ranging from 2,280sq ft to 3,005sq ft.
All are double-storey units built on freehold land, priced from RM730,000.
''Our concept places emphasis on space. The link houses and semi-Ds are built on parcels measuring 22ft by 70ft and 26ft by 70ft respectively.
''The courtyard superlink units come in two sizes — 24ft by 70ft and 34ft by 70ft, with an additional room by the side which can be used as a guestroom, or to entertain friends and family,'' she said.
The units' design concept utilises modernistic, clean-lines with a hint of tropical influence, with a tall ceiling height of 11ft, four-bedroom layout and generous car porch space large enough to accommodate two cars.
''There are also skylights above the staircase which helps bring in natural lighting into key circulation areas and creates a cosy ambience on the upper level,'' Teo said.
The project's facilities within its gated and guarded community include 24-hour surveillance, club house, a swimming pool, tai chi area, barbecue pits, children's play areas and spice gardens.
Teo said the One Residence project, with phases 4 and 5 to come, was scheduled to be completed by 2015.

Five-star sanctuary for Haven dwellers

CHAN LI LEEN lileen@thestar.com.my
THE HAVEN offers much more than a home.
It is a sanctuary — a modern condominium project boasting five-star services and amenities spread across 9.63ha in Tambun, Ipoh.
The RM230mil scheme comprises three blocks of 26-storey condominiums with the limestone hills of Kinta Valley as its backdrop and a 1.6ha natural lake and monolithic limestone rock formations as its centrepiece.
Despite being so close to nature, The Haven is only 10 minutes from Ipoh city centre and between three and eight minutes to all major hypermarkets.
The Haven Sdn Bhd co-principal David Yam said they aimed to be among the first projects to harvest nature's renewable resources to power and maintain common areas through the use of solar panels and wind technology.
''No where else can you expect to live in such natural surroundings and at the same time, have all the trappings of luxury and the promise of security,'' he said, adding they would showcase the scheme at the Star Property Fair at G Hotel and Gurney Plaza from Friday to Sunday.
The 489-unit project's facilities include a club house with gymnasium, sauna, a cafe/restaurant, a 60m pool, spa, children's playground, car park and multi-layered security.
Yam said the scheme had received favourable response even before its official launch, with about 65% of Block A taken up while Block C was just open for sale.
He added work was progressing according to its targeted completion in 2013.

Sun and sea come to play in coastal resort

By JAYAGANDI JAYARAJ jaya@thestar.com.my Jul 30, 2010

Away from the city: An aerial view of the Avillion Admiral Cove.
BEARING an image of its majestic colonial-inspired architecture before a bright blue ocean, Avillion Admiral Cove Port Dickson’s brochure says “Welcome to Harmony”.
Flip inside, it further explains that the resort is strategically located at a five and a half mile stretch of Port Dickson’s finest beach and it is a perfect getaway for many urbanites.
For those who crave for some sun, sea and sand, the quaint resort, owned by the Avillion Hotel Group is just an hour away from Kuala Lumpur.
Previously known as the Admiral Marina and Leisure Club, the resort has a marina and spans an area of about 105 acres. In April, it launched its Vista Wing, which offers some 160 rooms.
Depending on what one needs, you can opt for rooms with different views of choice.
There is a nice pool to relax and other facilities like a gym and a tennis court are available. Those who would like a spa can also pamper themselves here.
“It’s really up to our guests what they want to make of their holidays, although many come here for a quiet time and it is especially a popular place for couples on honeymoon.
“We also have many corporate companies who book the place for team building activities and retreats,” said resort sales director Fazrizah Noor, adding that the beach’s cleanliness was another factor.
“Many are under the impression that Port Dickson beaches are dirty, however at Avillion, we make sure that our beach is clean. In fact, we have an annual clean up to remove debris from the beaches to keep it clean as part of our corporate social responsibility,” she said.
Guests can opt to have meals at the resort’s Trader’s Food Shop. The menu has a wide selection of seafood, chicken and lamb with local fare like ais kacang, roti canai and fried koay teow.
For enquiries, call 06-647 0888 or visit www.avillion.com

MRCB will consider setting up REIT, says CEO

By EUGENE MAHALINGAM eugenicz@thestar.com.my Jul 29, 2010
MRCB will consider setting up REIT, says CEO
Mohamed Razeek Hussain exchanging documents with Maimoonah Mohamed Hussain. With them are MRCB senior vice-president and head of property Wong Dor Loke (left) and Danajamin Nasional Bhd CEO Ahmad Zulqarnain Onn.
KUALA LUMPUR: Malaysian Resources Corp Bhd (MRCB) will consider injecting some of its properties into a real estate investment trust (REIT) as part of the company’s growth strategy, said chief executive officer Mohamed Razeek Hussain.
“REIT has never been (far) away from our minds. It is a strategy that we might employ in the future, perhaps in the mid to long term.
“We are strengthening our balance sheet to enhance recurring income. When it is substantial and the time is right, we will consider,” he said after an agreement signing between MRCB and Affin Investment Bank Bhd yesterday.
Razeek was responding to a research report earlier this month that MRCB was gearing up for a REIT.
“For us, mid term would mean (within) three years and long term (is anything) beyond that,” he said.
Meanwhile, MRCB plans to raise RM400mil via a guaranteed commercial paper/medium-term note (CP/MTN) programme.
This is to finance its mixed commercial development, KL Sentral Park, which is valued at RM600mil.
MRCB Sentral Properties Sdn Bhd, a wholly-owned unit of MRCB, has appointed Affin Investment to act as principal adviser and lead arranger for the programme, which will be guaranteed by Danajamin Nasional Bhd.
The financial arrangement would come with an option of both floating and fixed interest rates, said Affin Investment managing director Maimoonah Mohamed Hussain.
“The MTN allows fixed-rate funding wherein MRCB can lock in the current low rates of interest, given the environment where interest rates are trending upwards.
“The CP, on the other hand, allows MRCB to issue short-term notes on a floating rate basis.”
Razeek said the first tranche, worth some RM50mil, would be issued “as soon as possible”. “For future tranches, it’s up to us to draw down whenever we want,” he said.
KL Sentral Park, which is about 18% completed, is scheduled for completion next year.
The project will comprise five blocks of office buildings, retail shops, business centres and green spaces with a net lettable are of about 518,000 sq ft.

MK Land profit down, sees better year ahead

PETALING JAYA: Property developer MK Land Bhd reported a lower net profit of RM3.8mil in the second quarter ended Dec 31 from RM5.2mil a year earlier, but sees a better year ahead on expectation of higher sales and tighter cost control.
Revenue was flat at RM48mil.
Executive chairman Tan Sri Mustapha Kamal said in a statement yesterday that the company was working to “improve its performance in the coming quarters, and with concerted effort of everyone, we aim to overcome the odds.’’
It was also confirmed that three of four chief operating officers of MK Land had left recently.
A top company executive was quoted by StarBiz on Wednesday as saying that internal management changes were an ongoing process to strengthen the group.
“With the continued confidence and mandate accorded to me by the board of directors and the support of the existing management team, we have managed to establish good relationship among our stakeholders, all of which have translated into the performance of the company,’’ Mustapha said in yesterday’s statement.
MK Land is also in the midst of raising fresh funds with the proposed rights issue to raise at least RM150mil.
Mustapha said the group was cautiously optimistic about its prospects moving forward given the increased interest of buyers of MK Land’s property projects in the Klang Valley.

Someone bought a penthouse for RM38mil in KL!

By TEE LIN SAY
linsay@thestar.com.my Jul 7, 2010
KUALA LUMPUR: The Binjai On The Park development in Kuala Lumpur City Centre (KLCC) caused a stir in the property market when one of its two super penthouses was sold last month for RM38mil, making it among the most expensive homes to have been sold in Malaysia in recent years.
Some property consultants, such as Zerin Properties chief executive officer Previndran Singhe, believe that this is the country’s largest condominium transaction, although it has yet to be verified.
The buyer is a corporate figure who has been on Forbes magazine’s list of wealthiest people. On June 22, he bought the triplex penthouse, measuring 14,300 sq ft, on the 42nd floor of Binjai’s Tower B. The price tag of RM38mil meant the penthouse was sold for almost RM2,660 per sq ft (psf).
“The buyer bought the penthouse to stay. He fell in love with the 360-degree unobstructed view of the KLCC skyline right at his doorstep, similar to views offered by the likes of London’s One Hyde Park. He said Binjai On The Park was just like one of his other homes around the globe,” said Terri Har, marketing and sales manager of Layar Intan Sdn Bhd, the developer.
Layar Intan is 100% owned by KLCC (Holdings) Sdn Bhd, which in turn is a wholly-owned subsidiary of Petronas.
Binjai’s two 45-storey towers have a total of 171 units. To date, the project has recorded sales of more than RM600mil at an average price of RM2,600 psf.
Over the last six months, three other penthouses have been sold for approximately RM18mil. On a psf basis, the most expensive unit so far was a standard unit on the 38th floor, which was sold for RM2,900 psf or RM10.6mil.
With Tower B now sold out, what is left are mainly Tower A’s standard units, which offer 3,700 sq ft each. Binjai is the only condominium located on the 50-acre KLCC Park and is part of the KLCC development master plan.
“Binjai’s key selling point is the fact that every unit has an unobstructed view of the park, along with a spacious balcony,” said HwangDBS Vickers Research analyst Yee Mee Hui.
Said Har of Layar Intan: “Some 30% of our buyers are from Japan, Hong Kong, Britain and other parts of Europe. Most of our buyers are businessmen and corporate people who already have homes around the world. They appreciate Binjai as the only development in the vicinity with an unblocked view of the KLCC skyline.”
She added that most of the local purchasers bought Binjai units to live there or as homes for their children, while the foreign buyers treated the units as holiday homes or transit points.

Johor developers keen to play integral role

zaza@thestar.com.my Jul 24, 2010
PROPERTY developers in Johor want the Government to engage them in the consultation for and drafting of a plan to transform Johor Baru into a vibrant city.
Real Estate and Housing Developers’ Association (Rehda) chairman of Johor branch, Simon Heng, says the private sector should not be left out in the drawing up of the plan although the initiative was mooted by the Federal and Johor Governments.
“It will be good for all stakeholders if both the public and private sectors could work together to ensure the success of the project,’’ he says in an interview with StarBizWeek.
Heng urges the Johor government to open up state-owned land in the city centre for redevelopment projects via the open tender system instead of awarding the parcels directly to certain parties.
He says it is only logical to engage property developers as they are responsive to the market and know what products sell and what buyers want.
“The former sites of the Lumba Kuda and Bukit Chagar low-cost flats are the best areas to build high-rise condominiums and serviced apartments.
“These properties will attract Malaysian professionals working in Singapore and expatriates based in the republic due to the close proximity,” he adds.
Heng says the number of Singaporeans renting houses in Johor Baru has risen in recent months because of the high rentals in the city-state. Most of these people commute daily from Johor Baru to work on the island.
Prime Minister Datuk Seri Najib Tun Razak had last month announced that the Government would allocate funding to rehabilitate and transform Johor Baru.
Under the 10th Malaysia Plan, some RM1.8bil will be spent within the city centre. T
his include RM200mil to clean up Sungai Segget, one of the dirtiest rivers in the country.
Sungai Segget flows along Jalan Wong Ah Fook in the city centre. Several years ago, RM6mil was spent to cover up a stretch of the river, which has a reputation for being a dumping ground for raw sewage.
The money for the proposed Johor Baru project comes from the Federal Government’s facilitating fund while the Iskandar Regional Development Authority (Irda) will act as a facilitator together with the State Economic Planning Unit (Upen).
According to Irda chief executive officer Ismail Ibrahim, Irda and Upen have until the end of this year to conduct studies to determine how the plan should look like. The findings are to be submitted to the Federal Government.
Undoubtedly, it is vital to rejuvenate Johor Baru city centre, in line with its status as one of the five flagship development zones in Iskandar Malaysia.
“Apart from engaging developers, views from property owners, non-governmental organisations, experts in town planning and chambers of commerce should be taken into account,’’ says Heng.
SP Setia Bhd executive vice-president (property division, northern and southern regions) Datuk Chang Khim Wah agrees with Heng.
He says the redevelopment plan will definitely increase the value of properties in areas near the city. These include those in Taman Pelangi, Taman Abad, Taman Sentosa and Taman Sri Tebrau.
Chang says while Johor Baru should have its own identity, the stakeholders can always look at the success stories of city-centre redevelopment in other parts of the world.
“A vibrant city should be a blend of the old and new, and a city should be a lively place not only during the day but also at night,’’ he says.
Chang says Istanbul is a good example as the city, with historical sites and monuments, blends well with its chic Taksim Square.
He says Johor Baru should have enough attractions to lure crowds back to the city centre even after office hours and during weekends. These can be done by having street performances, building specialty stores and boutique hotels in the old parts of the city, and by reopening the Ungku Puan night outdoor hawker centre.
The centre, which was the biggest alfresco dining area in the city centre, was highly popular with locals and tourists but was closed several years ago; instead, ugly concrete kiosks have been put up there.
KSL Holdings Bhd executive director Ku Hwa Seng suggests the authorities re-zone certain parts of the old housing estates near the city centre as part of the transformation plan.
He says residential properties facing the main roads in these estates could be converted into food and beverage outlets and specialty retail stores like in Bangsar, Kuala Lumpur.
Ku says developers should be allowed to buy these houses, refurbish and upgrade them, and lease these properties to restaurant and store owners.
“Concerted efforts are needed from the relevant parties to ensure the success of the plan. But the most important thing is the political will of the state government,’’ he says.

International tender for integrated scheme project

GEORGE TOWN: The state government will be calling for an international open tender at the end of this year for the Bayan Mutiara integrated project, said Chief Minister Lim Guan Eng.
He said the project, which had attracted tremendous interest, would involve 24ha between the Penang Bridge and Queensbay Mall in Bayan Bay, with another 16ha to be reclaimed.
“The successful bidder will be required to build a private hospital and an MSC status modern office complex,” he said at the opening of the Star Property Fair 2010 yesterday.
Lim had earlier announced that the development would comprise prestigious offices, medical facilities, commercial blocks, residential enclaves, retail and public spaces.
He said only companies with a paid-up capital of RM50mil would be invited to submit tenders.
He also said in his speech that Penang needed more branding for its products, services and properties.
“Developers must work hard to create a branding that is synonymous not only with quality, reliability, safety, sustainability and integrity, but also with affordability,” he said, adding that this was because there were still many property investors in countries such as northern China who were unaware about Penang and what it had to offer.
Lim said the state would work with the Real Estate Housing Developers Association (Rehda) and other relevant players in the housing industry to effectively brand Penang to attract overseas investments in properties, which was in line with the country’s objective to turn Malaysia into a knowledge-based and high-income country.
He added that the fair was timely as Penang could now offer between 20,000 and 40,000 jobs at all levels.
More than 20 major developers are taking part in the fair, organised by Star Publications (M) Bhd in collaboration with Henry Butcher Malaysia Penang, at G Hotel and the new wing of Gurney Plaza. The fair is open from 10am to 10pm and ends tomorrow.
Also present during the opening ceremony were Penang Domestic Trade, Consumer Affairs and Reli­gious Committee chairman Abdul Malik Abul Kassim, and Star Publications (M) Bhd executive directors Tan Sri Kamal Hashim and Datuk Seri Wong Chun Wai, who is also group chief editor.

1Malaysia Development awaits clarification on Bakun power supply

By Yap Leng Kuen
KUALA LUMPUR: 1Malaysia Development Bhd (1MDB) is awaiting clarification on the Bakun undersea cable transmission to assess the impact of a potentially larger supply of hydropower on its projects in Sarawak.
“News that the Bakun undersea cable project to Peninsular Malaysia may not take off has changed the plans and there has emerged an urgent need to pull up industries that can use all that energy,’’ said 1MDB CEO Shahrol Halmi.
Early this year, 1MDB signed an agreement with power utility giant State Grid Corp of China (SGCC) to carry out a number of multi-billion ringgit joint-venture projects in the Sarawak Corridor of Renewable Energy (Score).
According to reports, the two parties will set up a joint-venture company to pursue projects that would generate US$11bil worth of economic value.
SGCC is reported to be investing between US$6bil and US$8bil to set up one of the world’s largest aluminium smelter plants (estimated to involve US$3bil) and three hydro-electric dams in Sarawak through this cooperation with 1MDB.
“The project will take in a few new factors now,’’ said Shahrol. “We are awaiting clarification on where the Bakun Dam will supply power to.
“If the Government sees a role for us to play, we will bring more investors to Sarawak to use that power,’’ he said.
Energy, Green Technology and Water Minister Datuk Seri Peter Chin said in February that Bakun would initially supply Sarawak’s needs first before expanding to the peninsula.
Under the proposed plan, the cable project involving the construction of a 1,000km high-voltage direct-current transmission line and a 680-km undersea cable, was expected to be completed in 2015 with an open tender process to be launched in the first quarter of this year. Each cable would be able to transmit 800MW.
The Bakun dam project, with an installed capacity of 2,400MW, is expected to turn up some 300MW of juice by next month and to be fully commissioned by October 2011.
It was announced in February that Tan Sri Syed Mokhtar Al-Bukhary’s controlled GIIG Holdings Sdn Bhd had tied up with Aluminium Corp of China Ltd (Chalco) to develop a US$1bil smelter plant with an initial capacity of 330,000 tonnes per year in Samalaju Industrial Park in Bintulu. The plant will need some 600MW of electricity.
Another multi-billion ringgit aluminium smelter being planned in the same industrial area is by a 60:40 joint venture between Rio Tinto Alcan and Cahya Mata Sarawak Bhd with an initial capacity of 550,000 tonnes a year.
A memorandum of understanding was signed back in 2008 for Sarawak Energy Bhd (SEB) to supply between 900MW and 1,200MW of power to this smelter, presumably also from Bakun.

Sarawak Energy looking to buy or lease Bakun dam

By YAP LENG KUEN lengkuen@thestar.com.my
PETALING JAYA: Sarawak Energy Bhd (SEB) is looking at whether to buy or lease the 2,400MW Bakun Dam in its long-term bid to develop the hydropower and industrial sectors in the state.
It is understood that SEB hopes to reach an agreement with Sarawak Hidro Sdn Bhd, the owner of the dam, and the Finance Ministry, which in turn owns Sarawak Hidro, in one or two months’ time on the preferred option.
In the long term, leasing could turn out to be more expensive while a purchase based on deferred payments could be more feasible.
The issue here is that the Federal Government is said to be hesitant to sell power at too low a price while SEB may be unable to pay the “equitable’’ price, bearing in mind that it has not got the critical mass of investors that will take up the power.
Caught in this “chicken and egg’’ situation, it could be more feasible to instead buy up the dam with an upfront payment and subsequent staggered amounts subject to the usage of power.
“The purchase price is being discussed,’’ said an industry source. “But in view of the fact that the Bakun Dam took so long to build, there are certain costs that SEB will likely not want to pay.’’
The tariff talks, which are about to commence following the endorsement of technical details on the term sheet, will likely determine the yearly payments that SEB would have to make under the purchase scenario.
However, it is not known if the Federal Government would accept the deferred payment proposal or if it had in mind some other mode of payment or trade-off.
Among Sarawak Hidro’s main concerns is that the Government must be able to service its loans for the Bakun Dam, which come up to over RM3bil before adding interest and some operational costs.
According to Sarawak Hidro managing director Zulkifle Osman, the final cost of development is estimated at RM7bil. Out of the capacity of 2,400MW, the Bakun project is capable of producing anytime firm energy of 73% representing 1,770MW.
Gestation period
The problem is that even if SEB can procure the commitment from investors to set up their industries, the gestation period for many of these plants can be quite long.
Both parties would also be looking at a certain margin that includes tranmission costs for SEB and a rate of return for the Federal Government.
The smelters and industries, especially in the Sarawak Corridor of Renewable Energy, are also reported to be putting pressure on SEB to come up with “cheap’’ power although SEB is trying to convince them that it is the total package that counts, not just the price of the power.
With dam impoundment or flooding to commence soon, there is an urgency to solve these issues, especially relating to investors, before the first turbine starts generating in the first half of next year.
According to Zulkifle, Sarawak Hidro is getting co-operation from the relevant agencies to submit undertaking documents for the window to impound at appropriate levels.
Civil works on the dam are near completion, with the electrical and electromechanical job in progress for the switchyard and turbine generator.
Dry testing on the turbine generator is being carried out, while details involving firm and installed capacity, switchyard and protection are being finalised.

SIG to invest RM11m in Sarawak plant

KUALA LUMPUR: Industrial gases manufacturer SIG Gases Bhd will invest RM11mil to set up a production-cum-refilling plant in Sarawak, said executive chairman Peh Lam Hoh said.
He said RM9.74mil would be via proceeds from its initial public offering (IPO) while the balance from internally-generated funds.
“Our new facility (in Sarawak) will produce acetylene and carbon dioxide as well as refill nitrogen and oxygen,” he said at the launch of SIG prospectus in conjunction with its listing on the main board of Bursa Malaysia yesterday.
SIG currently has one production-cum-refilling plants each in Senai, Johor, and Nilai, Negri Sembilan.
The new plant in Sarawak will be the group’s third plant and will also enable it to explore opportunities in Brunei and Kalimantan, Indonesia.
“We opine the new plant would be aptly-positioned to cater to the anticipated growth in demand for industrial gases, propelled by the implementation of the Sarawak Corridor of Renewable Energy,” Peh said.
To a question, executive director Stanley Lau said the construction was expected to begin in mid-2011 and would be built in the Similaju Industrial Park, some 60km from Bintulu, Sarawak.
Lau said SIG currently held a 27% market share of acetylene gas in Malaysia, 7% for oxygen and 2% for nitrogen.
On SIG’s IPO, 49.2 million and three million offer-for-sale shares of 50 sen each will be made available for subscription at an issue price of 58 sen.
SIG is expected to raise RM28.54mil from its IPO.
Lau said the group would utilise RM4.2mil from the proceeds to repay its term loan. As at April 30, SIG had total bank borrowings of about RM19.43mil.
For the financial year ended Dec 31, 2009 (FY09), SIG posted a net profit of RM7.1mil on revenue of RM54.6mil. Its net profit margin for FY09 fell slightly to 13.03% from 15.23% in FY08.
For the first four months to April 30, SIG achieved a net profit of RM1.33mil against RM1.35mil in the previous corresponding period. Revenue stood at RM18.6mil for the period.
Despite the relatively flat performance, Peh said the group was confident of maintaining its net profit margin going forward.

subang olives

Everest Point Sdn Bhd
Suite 25-1 & 27-1,1st Floor
Wisma Dicor, Jalan SS17/1A,
47500 Subang Jaya,
Selangor, Malaysia.
Tel :03-5636 5777
Email Add : sales@subangolives.com
Website: www.subangolives.com

Subang Olives, Subang Jaya, Selangor

Subang Olives
Subang Olives is a mixed lifestyle development that is, worth its weight in gold! In modern times, "integration" is the property buzzword. Subang Olives has crafted the neighbourhood in such a way that luxurious serviced apartments sit comfortably near commercial offices and shopping indulgences.
Location
Strategically situated in one of Malaysia’s most sought after addresses, Subang Olives is easily accessible via the Federal Highway, Lebuhraya Damansara Puchong (LDP), New Klang Valley Expressway (NKVE), Kesas Highway and New Pantai Expressway (NPE).
Subang Olives is surrounded by a plethora of modern facilities and amenities, such as the Subang Parade Shopping Mall, Carrefour Hypermarket, Sime Darby Medical Centre, Monash University, Taylor’s College and other renowned institutes of higher learning.
A proposed LRT extension which will extend the Kelana Jaya line to Subang Jaya and ending at Putra Heights is expected to complete in year 2012.
Subang Olives Residence Built-up
Subang Olives Residence is a chic and spacious service apartment, found in the prime commercial and residential township of Subang Jaya. Subang Olives Residence links you up to the adjoining Olives Commercial (a commercial lifestyle centre with complimenting conveniences) and Olives Hotel.
Interested homebuyers are spoilt for choice as there are 13 beautiful and unique designs and two duplex penthouse designs to select from. The built-up of the service apartments range from 1,469sq ft to 3,125sq ft, while the duplex penthouse boasts a spacious built-up of 4,915sq ft and 5,535sq ft. There’s certainly one for everyone.
All units come attached with a self-contained studio apartment, which offers better flexibility in terms of space usage. That’s not all. Household wastes are handled mechanically in the most hygienic manner possible with the central waste vacuum collection system.
Facilities and amenities
Subang Olives Residence boasts comprehensive facilities such as a gymnasium, two swimming pools and a wading pool, tennis, squash and indoor badminton courts, outdoor children’s playground and many more.
There is also a large common exercise and recreational zone and a multi-purpose hall for social gatherings and functions. The development has been designed with CCTV cameras, alarm and intercom systems as well as independent lift services in each tower, which offer residents enhanced security and peace of mind.
Launch
What’s unique about this development is that there is no need for maintenance fees based on the unit sizes. Instead, the fees will be channeled into the car park charges collection instead, to ensure long term upkeep of the home.
The Developer
Everest Point Sdn Bhd (EPSB), developer of the integrated Olives project (formerly known as Jana Towers), is now a wholly owned subsidiary of AmanahRaya Berhad Group and comes directly under the purview of AmanahRaya Development Sdn Bhd (ARD) and AmanahRaya Hartanah Sdn Bhd (ARH). The developer continues to develop and manage Subang Olives in its Phase 1 development stage, covering the service apartments, amenities and facilities.
AmanahRaya, upon taking over the development, has since reviewed the project in entirety in consultation with leading industry players and real estate consultants and valuers, and made a crucial milestone decision to alter the yet-to-be-launched Phase 2 Service Apartment to become a completely new and vibrant office/hotel concept. This complements the Phase 1 service apartment, adding value to Subang Olives as a whole.

Iskandar gets RM4.6bil in new investments

By ZAZALI MUSA zaza@thestar.com.my Jul 5, 2010
PASIR GUDANG: Iskandar Malaysia (IM) has received RM4.62bil new investments in the first five months of the year in the manufacturing, services and information and communication technology (ICT) sectors.
Iskandar Regional Development Authority (IRDA) chief executive officer Ismail Ibrahim said the investments were made by both locals and foreigners.
He declined to divulge the identity of the investors and the countries, saying only that they would be made known to the press at the appropriate time.
Ismail said Prime Minister Datuk Seri Najib Razak or Johor Mentri Besar Datuk Abdul Ghani Othman, the co-chairmen of IRDA, was likely to make the announcement on the new investments soon.
“Similarly, we expect more investments to come from Singapore following the improvement in the bilateral ties between Malaysia and Singapore,” he said.
Ismail was speaking to reporters at the launch of the Iskandar Malaysia Open Day in Pasir Gudang Town Centre by Johor state secretary Datuk Abdul Latiff Yusof on Saturday.
He said apart from Singaporean investors, IM also expected investments from Indonesian investors following the three-day working visit by Deputy Prime Minister Tan Sri Muhyiddin Yassin to Jakarta last week.
International Trade and Industry Minister Datuk Seri Mustapa Mohamed was cited in news reports in May this year as saying that at least 15 American companies had also conveyed their interest to invest in IM following his visit to the United States.
On the allocation for infrastructure projects slated for the 10th Malaysia Plan (10MP) in IM, Ismail said Najib would announce the allocation and details of the projects when he tables Budget 2011 later this year.