MALAYSIAN Resources Corp Bhd (MRCB) has new projects worth some RM6 billion to launch at Kuala Lumpur Sentral (KL Sentral), the integrated transport hub in Brickfields, before the end of the development in 2015/ 2016.
Group managing director Shahril Ridza Ridzuan said MRCB, one of the country's biggest office space providers, will launch three million sq ft of space next year.
These would include room for two luxury serviced apartment towers, an office building, and the 6-star 200-room St Regis Hotel.
Shahril said the construction for St Regis will start by mid-2010, followed by the office building.
He said the two serviced apartments towers, worth almost RM900 million, will be launched towards the end of next year.
"We have land fronting Jalan Tun Sambanthan, which we are reserving for the final phase of the KL Sentral development. We are in the midst of deciding what we want to build on the land. A decision would be made around 2012," Shahril said in an interview with Business Times in Kuala Lumpur recently.
Currently, there are RM7 billion worth of on-going projects at KL Sentral, which would be completed between 2011 and 2012.
These includes Nu Sentral Mall, a business class hotel, three office towers, an office block for CIMB Investment Group, the KL Sentral park featuring low-rise high-end offices, and 348 Sentral, comprising a 33-storey office tower and 21-storey serviced residence.
Shahril said MRCB is in talks with international operators to manage the business class hotel.
On the three office towers, Shahril said one building with 27 floors will be taken up by Pelaburan Hartanah Bhd.
The two remaining towers will have Korean interest. They will provide capital under the Daol Trust & Fund Co Ltd (Daol Fund), he said. Daol Fund is Korea's first specialised real estate fund investment and management company.
"The structure will be similar to a real estate investment trust (REIT) where the Koreans will invests in the towers, and we would manage it for them for a few years."
On replicating KL Sentral, Shahril said while it would be difficult to do that in Kuala Lumpur due to scarcity of land, there is no doubt the development would be taken international.
He said MRCB is in talks with potential parties to replicate KL Sentral in the Middle East and Asia Pacific, including in China and India.
Malaysian Resources Corp Bhd (MRCB) (1651) plans to undertake its biggest development project ever in the Klang Valley by as early as next year.
The planned project is expected to dwarf MRCB's flagship Kuala Lumpur Sentral (KL Sentral) transport hub in Brickfields.
Group managing director Shahril Ridza Ridzuan said MRCB will use part of the RM566 million raised from a rights issue to buy land for the development.
"We are planning the next big thing after KL Sentral. It would be something more exciting and bigger than any of our existing projects," Shahril said.
KL Sentral is due to complete by 2015/2016.
"We are looking at a few plots of land. Depending on the land size and location, we will decide on the best development to do," Shahril said in an interview with Business Times in Kuala Lumpur recently.
He said the group is also buying land for new commercial and residential projects in 2010.
MRCB, which has RM7 billion worth of construction jobs in hand, has proposed to offer up to 483 million new shares at an issue price of RM1.172 each.
The fund-raising exercise is targeted for completion in the first quarter of next year.
MRCB will use some of the proceeds to fund the RM800 million
Nu Mall project at KL Sentral and expand its environmental engineering and infrastructure business.
For infrastructure development, Shahril said MRCB will bid for the RM7 billion Klang Valley Light Rail Transit (LRT) extension project.
He said tenders for pre-qualification will be out soon.
"We will bid for the project either as a whole package, or in smaller packages. It would depend on what the government wants," Shahril said.
MRCB is also trying to build up its asset portfolio.
It now manages three office towers at KL Sentral and one in Shah Alam. By 2011, it would manage four new towers at KL Sentral, currently under construction.
Shahril ruled out injecting the properties into a real estate investment trust (REIT).
"We are already doing a similar structure and concept as a REIT. We are managing properties for investors for a management fee. We like what we are doing and would build on that," he said. - btimes
Boutique property developer Kuala Lumpur Metro Group will launch two resort developments and a housing project worth a combined RM300 million in Port Dickson, Bangi, and Penang, over the next eight months.
The low-profile group, which made a mark in property development when it launched its landmark project - the Legend International Water Homes in Port Dickson in 2003, is also planning to expand into China and Vietnam.
"We are looking at resort developments in China and Vietnam. We believe there is a market for resort-type products. We have identified the local partners, but plans are still preliminary," said KL Metro managing director Datuk Low Tak Fatt.
Locally, KL Metro will launch Phase 3 of the Legend Water Homes valued at RM45 million and 30 units of semi-detached houses in Bangi, worth RM25 million, by December.
By mid-2010, KL Metro will launch The Hibiscus in Penang, which features 460 units of five-star water homes at Teluk Kumbar.
The Penang development is worth some RM200 million and KL Metro is targeting buyers from Asia Pacific, Europe and the Middle East.
"Demand for water homes in Malaysia is greater than supply so we expect our projects to do very well," Low told a media briefing on the second phase of its Legend Water Homes in Kuala Lumpur yesterday.
Phase 2, which will open on November 1, offers 166 water homes, 44 garden chalets and 39 sky pool villas.
Priced from RM400,000 to RM700,000 each, some RM160 million or 99 per cent of the properties have been sold, Low said.
Majority of the buyers were from the Hong Kong, Singapore, Macau, the Middle East and some European countries, with an option to lease back at an 8 per cent gross rental income return a year.
Low said he expects 50 per cent occupancy in the first year, with average promotional room rates starting from RM550 per night to RM900.
He said KL Metro is aiming for occupancy to grow by 10 per cent per year via aggressive marketing.
"Despite the downturn of the economy and credit crunch worldwide, we still managed to complete Phase 2 three months ahead and sell all the units. We are proud of this development," Low said.
Phase 1, which has 329 units, was completed in 2006 and fully sold within two years.
The Balinese-themed resort took the "Best Architecture" and "Best Development" titles at the CNBC International Property Awards in London in 2007.
Sunrise Bhd (6165), the country's fourth biggest developer in terms of revenue, is exploring proposals to develop land in Vietnam, China and India.
ITs only venture abroad is in Vancouver, Canada, where it is planning a RM1 billion mixed development.
"We receive proposals from all over, just like any others, but we can't tie up with the economics and regulatory environment," executive chairman Tong Kooi Ong said.
Sunrise is re-engineering its project in Richmond, Vancouver, to reduce construction costs.
"We have budgeted for low selling price, which has forced us to budget for lower construction costs. If all goes well, we will launch the project in mid-2010," Tong said at a briefing to analysts in Kuala Lumpur yesterday.
On the home front, Sunrise is trying to find a niche in Iskandar Malaysia, Johor, as well as Penang, he added.
"We must have economies of scale and brand value. We can't hit and run."
According to Tong, Sunrise will still be busy with developments in Mont'Kiara for the next eight years. It has some 30ha to develop.
On whether Sunrise could surpass its 2008 earnings, Tong said he was confident that it would do well in the current year.
Last year, Sunrise made RM156.2 million net profit on RM803.9 million revenue.
It is expecting unbilled sales of RM864 million and two new strata developments in Kuala Lumpur, worth RM1.5 billion, to underpin earnings until 2011.
Most of the unbilled sales, or sales that have yet to be booked into its accounts, were from higher-margin products in the prestigious Mont'Kiara enclave.
The government will look at the feedback and if there is a need to do any adjustments, it will reconsider, says Deputy International Trade and Industry Minister
The government may do away with the real property gains tax (RPGT) based on feedback from industry players, said Deputy International Trade and Industry Minister Datuk Mukhriz Mahathir.
The RPGT will return next year at a fixed 5 per cent after it was scrapped in 2007, following the 2010 Budget announcement on October 23.
However, some industry players were upset about the tax as they feel it could hurt the market and Malaysia's effort to promote local properties to foreigners.
"We will look at the feedback and if there is a need for us to do any adjustments, we will reconsider," he said in response to media queries.
Mukhriz was launching a one-day seminar on the impact of globalisation and liberalisation to the business and real estate industry.
Mukhriz said the government had received feedback from non-governmental organisations and other agencies.
Earlier, he said the government had provided numerous incentives to the housing sector to shore up the economy as shown in the RM400 million incentives extended through the two stimulus packages.
In addition, there is a tax relief on housing loan interest of up to RM10,000 for three years in the 2009 Budget to stimulate the industry.
Meanwhile, estate agent Raine & Horne managing partner Datuk Zaki Said said the property sector does not take policy inconsistencies well.
"The international market feels uncomfortable with changes in the policy. On the part of the industry and policymakers, they are looking at the (market) scenario one of which is to curb speculation."
"But we need genuine buyers which will be good for the industry and economy," he said.
The Malaysian property market has been attracting regional buyers, including Singaporeans and there has been higher interest for expensive properties in Kuala Lumpur from Indonesian investors too.
Zaki said the market has stabilised and is expected to grow by 5 per cent to 10 per cent next year. - btimes
Developers in the Klang Valley are planning to launch more projects in the coming months as the local property market continues its recovery.
To provide industry players a platform to showcase their latest developments, The Star Media Group will be organising the first Star Property Fair in Kuala Lumpur from Nov 27 to 29.
Themed “Stylish Living”, The Star Property Fair Kuala Lumpur will be held at the KL Convention Centre halls 4 and 5.
According to Star Publications (M) Bhd group managing director and chief executive officer Datin Linda Ngiam, the economic downturn has affected the property market and there is a need for an integrated platform for property developers and prospective purchasers to meet.
“The Star Property Fair is an integrated platform because it will be an on ground event fully supported by our print, radio, magazine and online media, especially StarProperty portal.
“Through the property fair, we hope to complement the Government’s efforts in stimulating the economy especially in the property market and hasten the process of recovery. Businesses such as financial and lifestyle will subsequently benefit also,” Ngiam said.
The Star has so far organised eight annual property fairs in Penang and response from both exhibitors and visitors has been very encouraging, making it the leading property fair in Penang.
“With our established network and the strategic platform created over the years, we want to leverage on our position as a leading media group to set a new benchmark for property exhibitions in the country,” she added.
Ngiam said many affluent Malaysians were looking to invest in properties that would not only give them good long-term value but also reflect on their lifestyles.
The upcoming fair will enable visitors to view the latest offerings by renowned local developers for a broad range of property from medium to medium high-range residences, luxurious bungalows to exclusive condominiums, and commercial projects.
Visitors will also have the opportunity to obtain advice on financing options from participating financial institutions as well as government agencies that will be on hand to offer information on Employees’ Provident Fund withdrawals and on other matters.
There will also be talks and forums conducted by industry experts on various topics, including property investment, feng shui and home inspirations.
Other attractions include auctions by CIMB Property Mart and a contest for all visitors to the fair with prizes worth over RM20,000 to be won.
The property fair is open to the public from 11am to 8pm (Friday to Sunday) and admission is free.- thestar
Department store Metrojaya Bhd (9725) will close its outlet in Berjaya Times Square next week, three years after moving in as an anchor tenant.
Metrojaya, which occupies 114,000 sq ft of space at the Kuala Lumpur mall, will close its doors at the end of operating hours on Sunday and move out by month-end.
It will be the second time a retailer is leaving Berjaya Times Square. The UK's leading multi-category retailer, Debenhams, exited the mall and the country in August 2006.
Metrojaya chairman Datuk Ahmad Khairummuzammil told Business Times that its exit was part of a rationalisation exercise.
"This is purely a business decision. We feel we can do better if we focus on our other existing stores," Ahmad said, adding that it was leaving at the end of its three-year tenancy agreement.
While the outlet is profitable, Metrojaya feels that it will be better to focus on its 138,000 sq ft store in Bukit Bintang Plaza, located a stone's throw away. It plans to spend RM9 million to renovate this outlet.
Metrojaya will hold a sale from now until the closing of the store.
The store opened officially on November 21 2006, taking over the space vacated by Debenhams.
Berjaya Group's BTS Department Store Sdn Bhd had the franchise for Debenhams, but the deal was mutually terminated after three years when the business proved to be not viable.
Metrojaya, a RM400 million company, operates five other department stores apart from the one in Bukit Bintang Plaza as well as four MJ Fashion Concept Stores.
It also operates speciality store Living Quarters, Somerset Bay, East India Company and Reject Shop.
The management of Berjaya Times Square did not return calls from Business Times.
However, a quick check with the mall's leasing department revealed that it had not yet secured a new tenant for the space.
