SunCity faces challenge in selling high-end units

PROPERTY developer Sunway City Bhd (SunCity) (6289)faces a great challenge to sell a massive stock of RM1.2 billion houses, particularly the high-end projects in Mont Kiara and Bandar Sunway where sales have been slow, AmResearch says.

The group is aiming for RM330 million in residential sales this year but has so far achieved only RM130 million, the broker said.

The take-up rate for Bayrock South Quay in Bandar Sunway, which has 77 bungalows priced between RM4 million and RM7 million per unit, has stalled at 35 per cent since the soft launch in April last year.

Only about two-fifths of the Vivaldi project in Mont Kiara were sold, where there are 234 units priced at RM850 per sq ft.
"We understand from its management that the group is unlikely to bring prices down to speed up inventory liquidation," AmResearch said in a report yesterday to initiate coverage on the company.

Instead, SunCity plans to lure potential buyers with more attractive financial scheme for selected projects, such as no-interest payment during construction and no payment for up to 24 months, the report said.

AmResearch rates the shares of SunCity as a "hold", with a fair value of RM3.45. The stock appears "fairly valued" after its price more than doubled in March this year, the broker said.

SunCity fell 1.8 per cent to close at RM3.20 yesterday. The stock has risen 83 per cent this year, beating a 36 per cent rise in the FTSE Bursa Malaysia KLCI so far.

The primary catalyst for the shares continues to centre on SunCity's potential to cash out from its large portfolio of investment properties worth an estimated RM3 billion to RM4 billion via the set up of an real estate investment trust (REIT).

"We, however, are skeptical that the group can successfully launch a REIT given our concern over pricing and quality of assets to be injected," AmResearch said.

Aside from Sunway Pyramid shopping mall and Wisma Denmark, other assets that the group plans to sell into the property trust are not really suitable for a REIT, it pointed out.

Sunway Group had planned to float a REIT which holds its key assets that include office towers, retail malls, a hospital and university hostel by as early as 2007. The plan has been delayed so far, mainly due to unfavourable market conditions.

Source: BT Times 8 Sept 2009

Launch for Green Developer Bluwater's RM3b Sri Kembangan project

BOUTIQUE property developer Bluwater Developments Bhd will launch the first phase of its RM3 billion residential project in Seri Kembangan, Selangor, in June, offering 18 bungalow lots worth a combined RM25 million, or RM150 per sq ft, for sale.

The bungalow lots, dubbed "Bluhaven", are part of the upscale Bluwater Estate, which sprawls over 100ha and will be developed over eight years by phases.

And depending on market demand, it will launch a few lakeside villas, priced from RM800,000 to about RM1 million each, in the second half of this year.

Bluwater Developments is a unit of Clearwater Group, controlled by Dian Lee Cheng Ling, eldest daughter of property tycoon Tan Sri Lee Kim Yew.
Dian Lee, who is Bluwater Developments managing director, said she believes in Bluwater Estate's product offering, which is planned and designed by award-winning architect Sim Boon Yang of Eco-id Architects.

In addition to bungalow lots and villas, the estate will have semi-detached homes and condominiums. Some 1,000 households will live there after its completion.

The company is targeting to sell the properties to buyers in Europe and Asia Pacific, including Malaysia.

"The market sentiment has weakened due to turmoil. There are, however, astute investors who continue to look for good quality and priced properties thus, we do see sales in our projects, albeit at a slower pace," Dian Lee told Business Times in Seri Kembangan recently, after inking a deal with GD Baby Programme (S) Pte Ltd for rights to distribute Glenn Doman learning tools in Malaysia.

She believes there is possibility of some form of recovery in the second half of 2009 as trillions of dollars are being pumped into global economies in the form of fiscal stimulus.

"There is a chance that recovery would be sooner. The stock market will probably lead the recovery, followed by the property markets," she added.

Glenn Doman Baby Malaysia Sdn Bhd, the lifestyle arm of Clearwater, will provide the learning kits and programmes for normal and brain injured babies and toddlers up to age six.

Source: BTTimes June 2009

MRCB's Integrated Development At KL Sentral To Be Completed By 2012

Malaysian Resources Corporation Bhd (MRCB)'s new integrated development project at Kuala Lumpur Sentral (KL Sentral) is already 10 percent underway and expected to be completed by 2012, group managing director Shahril Ridza Ridzuan said Tuesday.

The project includes a retail mall, three office towers and a hotel.

Shahril said the retail mall called Nu Sentral is expected to attract a decent rental revenue as it would be catering for medium to high end retailers but declined to reveal posibble tenants.

"We expect a decent commercial return from the mall which we are developing with Pelaburan Hartanah Bhd (PHB)," he told reporters after the launch of Nu Sentral by Prime Minister Datuk Seri Najib Razak here.

The hotel, he added, is expected to be launched next year.

Nu Sentral and the office towers development is a joint investment between MRCB and PHB, a subsidiary of Yayasan Amanah Hartanah Bumiputera.

Shahril said Nu Sentral would be managed by Nu Sentral Sdn Bhd, a joint venture development by MRCB and PHB with 51:49 equity stakes respectively.

MRCB and its partners invested more than RM3 billion in the integrated development project, of which the group itself put in about RM1 billion of the total sum.

Earlier at the launch, MRCB chairman Tan Sri Azlan Zainol said the next three years would see more developmental activities within KL Sentral as MRCB raced towards fulfilling its development masterplan's goal of completion in 2015/2016.

He said MRCB and its partners were also simultaneously building the new CIMB headquarters in front of the National Museum, the new Shell headquarters at 348 Sentral and would soon begin construction of KL Sentral Park, a green office campus development.

By next year, MRCB expects to start construction of a new office development, luxury hotel and new luxury condominiums in front of the museum, Azlan said.

"All these developments will bring the total gross floor area under construction at KL Sentral to more than six million square feet with a gross development value of RM7 billion," he said.

Source: Bernama August 2009

Selangor Dredging to go big in Singapore

KUALA LUMPUR: Selangor Dredging Bhd (SDB) plans to launch more luxury condominiums in Singapore after its maiden project there, comprising 22 luxury condos at Wilkie Road, received good response and drew in sales worth RM163mil.

“We do have projects in the pipeline for Singapore,” managing director Teh Lip Kim said at the company AGM here.

Teh Lip Kim ... ‘Singapore has been identified by Selangor Dredging as a place of growth.’

“Singapore has been identified by SDB as a place of growth and there are potential development opportunities that suit our niche market.”

The former tin mining company recently acquired a piece of land in the Newton Circus area of Singapore and is in the works to build 110 luxury condos.

The project was expected to generate a revenue of RM450mil for the company, Teh said.

While there are no immediate plans to expand property development beyond Malaysia and Singapore, Teh did not rule out the idea, citing the recovery in regional propert markets.

On SDB’s controversial Damansara 21 project in Kuala Lumpur, chairman Eddy Chieng confirmed that the stop-work order issued by City Hall had not been lifted.

The hillside construction of 21 luxury bungalows at Damansara Heights drew protests from the public due to concerns over its enviromental impact on surrounding areas.

Chieng dismissed fears that the project might cause landslides, claiming that Damansara 21 was benchmarked against standards in Hong Kong, which has many hillside developments.

“We have fully complied with the Government’s recent guidelines regarding hillside developments, and we are just waiting for further approval,” he said.

SDB reported a net profit of RM17.24mil on turnover of RM164.07mil for the year ended March 31.

Source: The Star August 2009

Plan To Make It A Must For New Buildings To Meet GBI Criteria

The government is expected to introduce a new policy under the Tenth Malaysia Plan (10MP) to require all new buildings to meet the criteria under the Green Building Index (GBI).

Public Works Department (PWD) director-general, Datuk Seri Dr Judin Abdul Karim, said the Economic Planning Unit in the Prime Minister's Department would decide on the criteria.

"Since the government has shown its desire to adopt the GBI under the 9th Malaysia Plan, I don't see any hesitation to introduce the policy under the 10MP," he said.

Judin was speaking to reporters after delivering a keynote address at the launch of Infrastructure Asia's Conference on Building Information Modelling and Sustainable Architecture here on Wednesday.

He said existing buildings were expected to be upgraded to meet the GBI requirements in stages as it was expensive to do it immediately.

On another development, he said the PWD has introduced a new project review process, 'Gerbang Nilai' to supervise infrastructure projects.

He said this would ensure that a project was really perfect and in accordance with the plan submitted.

"We want all the new projects to mature from each stage as many do not know their initial mistakes and realise it during the finishing stage," he said.

Source: Bernama 19 August 2009

PAM To Propose Incentives For Malaysian Green Developers

The Malaysian Institute of Architects (PAM) will submit a proposal asking the government to provide incentives to developers who fulfilled the Green Building Index (GBI) criteria.

Its president Lee Chor Wah said PAM hoped that the proposal, to be submitted to the Finance Ministry on Friday, would be considered positively by the government as a form of appreciation to developers who built environmental-friendly buildings, which cost higher.

Lee said financial factors were among the issues hampering efforts to build green buildings, which cost 10 to 15 per cent higher than ordinary buildings.

"I think there will be announcement on the matter later," he told Bernama at the signing of a memorandum of understanding today between PAM and Universiti Putra Malaysia's Faculty of Design and Architecture to incorporate the PAM-developed GBI system into the faculty's curriculum.

Apart from developers, the PAM also hoped that the government could provide incentives to contractors, architects and engineers similar to what was being practised in Singapore.

He said that the incentives need not be in the form of cash.

It could be in the form of tax relief as well as rebates on equipment and stamp duties, he added.

Lee said that since its launching in May this year, only one building fulfilled the GBI criteria, namely the GEO building in Bangi.

There were also 40 GBI projects currently being evaluated by PAM, he said.

There are six categories for the GBI evaluation namely energy efficiency, interior air quality, site planning and management, material and resources, water usage efficiency and innovation.

Source: Bernama 28 August 2009

Bina Puri Secures RM36.6 Million Project In Kota Kinabalu

Bina Puri Construction Sdn Bhd, a wholly-owned subsidiary of Bina Puri Holdings Bhd, has been awarded a RM36.6 million substructure project in Kota Kinabalu, Sabah.

The award from Sunsea Development Sdn Bhd is for the construction and completion of earthworks, piling works, pile caps, basement slab and basement retaining wall for a proposed commercial development in Kota Kinabalu, Sabah.

The substructure works are part of the Kota Kinabalu City Waterfront (KKCW) development and construction is expected to be completed within nine months, the holding company said in a statement Thursday.

KKCW which had its groundbreaking in February, is a mixed commercial development comprising four-levels of retail mall, residential designer suites and a five-star international hotel, all to be built on a 1.248 hectare of sea frontage land.

Source: Bernama 3 Sept 2009
The project is a joint venture between DBKK Holdings Sdn Bhd and Sunsea Development Sdn Bhd, a subsidiary company of Waterfront Urban Development Sdn Bhd, the statement added.

With the above award, Bina Puri group's current book order stands at RM2.32 billion, having managed to secure new projects of up to RM1.15 billion so far in 2009.

It will continue bidding for new projects, both locally and internationally and is confident of securing new projects before year-end.

Meanwhile, Bina Puri Construction's on-going projects in Sabah, include the construction and completion of "Dewan Kuliah Pusat Ke-2" and "Pusat Pasca Siswazah for Universiti Malaysia Sabah (UMS), Kota Kinabalu, Sabah and a housing development at Sayang Buang, Papar.

It had completed projects valued about RM1.5 billion in Sabah which includes, the 38-km of Kota Kinabalu Sulaman Coastal Road, Institute Latihan Perindustrian Sabah, Wisma PERKESO, Road from Jalan Sipitang to Tenom and Jesselton Condominium.