Continuous improvement needed for developers to remain competitive

FIABCI MALAYSIA is urging local property developers to “raise the bar” in order to remain competitive at the annual FIABCI Prix d’Excellence Awards, which comprises the best of the best from around the world.

“The Malaysian real estate projects are some of the world’s best in the true sense. (However), the competition will get tougher each year as more and more countries enter the competition with their own national winners,” FIABCI Malaysia president Yeow Thit Sang said recently at an appreciation dinner for Malaysian developers that were honoured at this year’s FIABCI Prix d’Excellence Awards.

Yeow however commended the Malaysian companies that were recognised at this year’s Prix d’Excellence Awards.

“There is total transparency and independence in the judging process. None of the 47 judges knew who was marking which project. There was no comparison of opinion between any of them. All the marks were given independently,” he says.

FIABCI Malaysia is the organiser of the annual Malaysia Property Awards (MPA), which is considered the “Oscars” of the property industry.

Over the years, there has been an increasing emphasis on the environment and participants at the MPA have to take this into consideration.

“The impact a particular project has on the environment currently accounts for between 20% and 25% of the judging criteria,” says Yeow.

He also says the standard of judging for the MPA has increased over the years.

“It comprises a four-tier process,” says Yeow, adding that the judges comprise past presidents of FIABCI Malaysia.

“We also have a public auditor who collates all the marks,” he says.

Winners of the MPA in their relevant categories will go on to represent Malaysia the following year at the FIABCI International Prix d’Excellence, an annual competition that honours the world’s best property projects.

This year’s FIABCI Prix d’Excellence Awards, which was held in May at St. Petersburg, Russia, crowned four Malaysian developments in total, namely UEM Land Holding Bhd (for the Master Plan category), Mulpha International Bhd (Residential Low Rise) category, SP Setia Bhd(Specialised Project/Purpose-Built category and Sunway City (Ipoh) Sdn Bhd (Resort category).

Established in 1992, this year’s MPA will be held in November.

Separately, Yeow says he is optimistic about the outlook of the local property market for this year, adding however that things can turn for the worse should the global economic situation deteriorates.

“The economies of the world have a great influence on the local market. If Europe and the United States are affected – because they are buying from us, it will affect us. Eventually, our products cannot sell and there will be unemployment.

“Once unemployment comes in, the real estate market will be affected. If you’ve bought a house and you’re servicing the loan and lose your job, what are you going to do?” — The Star

One step closer to new look

THE proposed upgrading of the Chowrasta Market in George Town has taken a step towards reality.

The Penang Municipal Council (MPPP) has approved a budget of RM12.07mil for the project, said its financial management sub-committee alternate chairman Tan Hun Wooi.

He said the project’s architect would have to submit the paperwork for the project in a month or two.

Tan was, however, unable to say when the project would start as the paperwork had to be reviewed after submission.

“The project is expected to be completed in three years after work starts,” he said at an MPPP full council meeting at the City Hall yesterday.

It was reported earlier that the market would sport a refreshing new look under the project which, among others, would include a five-storey car park with 153 parking bays.

Other proposals include travelators, a small bank with automated teller machines, a post office and an urban farm on the rooftop where hydroponic plants could be grown.

The original Chowrasta Market was built in 1890 by the George Town Municipal Council and was last upgraded in 1961.

On another matter, MPPP councillor Muhammad Sabri Md Osman said the road heading from Jalan Sekolah La Salle towards Jalan Lumba Kuda via Jalan Kuda would be turned into a one-way street from Monday to Friday (6.30am to 8am and 12.30pm to 2pm) to alleviate traffic congestion.

“Part of Jalan Ibbetson (from the junction of Jalan Grove) to the entrance of SM Teknik Tunku Abdul Rahman Putra will also be turned into a one-way street during the same periods,” he said.

He said a three-month trial of the one-way street system on the two roads would be implemented from next month. - The Star

Affordable housing move

DEVELOPERS who opt to build 87 housing units per acre (0.4ha) on Penang island will now have to allocate 15% of their projects for units priced between RM200,000 and RM300,000.

This is an increase of 5% as the previous requirement for such units for that plot ratio was 10%, said Penang Municipal Council (MPPP) councillor Felix Ooi Keat Hin.

He said developers who take up the plot ratio were able to build more units and, as such, they needed to also build more affordable ones too.

“It is an initiative by the state to build more affordable housing,” Ooi said at a full council meeting at the City Hall in the Esplanade, Penang, yesterday.

He said developers who opted for that plot ratio also had to allocate 5% of their project for units priced RM200,000 and below, and 5% for units priced between RM300,000 and RM500,000.

ull agenda: Councillors discussing matters at the full council meeting at the City Hall.

MPPP Public Health Standing Committee alternate chairman Ong Ah Teong said Alunan Matrik Sdn Bhd had been awarded the tender to manage the use of electronic bunting on street lamps.

He said the award was made through an open tender conducted in June last year.

He said the company would be allowed to put up 100 panels on selected street lamps for which they had to pay the council RM720 per panel a year in addition to a RM10,000 deposit for all 100 panels.

“The company have to comply with regulations set by the council such as a ban on alcohol advertisements,” Ong said, adding that the e-buntings would be up in July.

When contacted, Alunan Matrik marketing vice-president Patricia Pee said the e-bunting was an initiative by the company to go green as there would be no ink and paper wastage. - The Star

Mah Sing may gain up to 25% margins from Southville

KUALA LUMPUR: Property developer Mah Sing Group Bhd is expected to benefit from its latest land purchase in Bangi, Selangor, due to the large pre-tax profit margins the company can gain from the development.

Analysts said the development of Southville City on the Bangi land could achieve pre-tax profit margins of up to 25%.

The project would be developed on a 408-acre freehold land and four-acre leasehold land.

Maybank Investment Bank Bhd analyst Wong Wei Sum said in a report that the development, slated for a launch in the first-half of 2013, could translate into a net profit of RM50mil per annum or six sen per share. This is on the assumption of a 25% pre-tax profit margin and an eight-year development period.

She has retained a “hold” rating on the stock on the premise that higher interest costs had lowered the company's 2012-2013 net profit forecasts by 0.2% to 1.2% and had also raised net profit forecast for 2014 by 4.7%.

“Post-acquisition, Mah Sing's net gearing would jump to 0.6 times from 0.3 times as at end-Dec 2011. There's no change to our RM2.95 revised net asset value estimate,” Wong added.

Hong Leong IB said it was “positive” on the land acquisition.

“We are positive on this acquisition as land cost makes up 16% of overall gross development value, meaning margins should be healthy.

“This is a very quick turnaround project, with Phase 1 to be launched in the second half of this year. We expect earnings contribution to commence in the first half of 2013. Phase 1 will comprise double-storey link homes indicatively priced from RM530,000.”

Hong Leong IB has retained its “buy” call on Mah Sing with a target price of RM2.44, which is a 30% discount to revised net asset value.

Meanwhile, analysts at Kenanga Research have maintained their “market perform” rating on the stock and lowered their target price to RM2 from RM2.18 previously.

They said that it was a sector-driven call due to the unexciting sector dynamics, coupled with Mah Sing's higher-than-average net gearing level among developers under their coverage. - The Star

Inspired by famous Oz market

BY December, people of Paya Terubong in Penang will have a wet market with a modern and dynamic architectural design and facilities complete with a food court.

The Sri Aman Food Court and Wet Market costing RM5mil is a project by developer Chong Company Sdn Bhd under its Corporate Social Responsibility programme.

The project is built on a 0.76ha land in Persiaran Paya Terubong 3.

At the site: A view of the Sri Aman Food Court and Wet Market contruction in progress in Persiaran Paya Terubong 3, Penang

Chong Company executive director Chan Fock Seng said the project was currently under the third phase of construction.

“The building can accommodate 50,000 people and it will be the first wet market and food court complex in Paya Terubong.

“The design is inspired by the Queen Victoria Market in Melbourne, Australia, with high ceilings for good ventilation, car parking bays, loading area, motorcycle parks, toilets and washing area,” he said.

An artist's impression of the new market's interior

“It will house 143 stalls in the wet market section and 37 stalls in the food court section,” he told reporters after visiting the project site with state Local Government and Traffic Management Committee chairman Chow Kon Yeow recently.

Chow commended the company’s Green Initiatives Plan to incorporate a Recycling Centre, Natural Ventilation, Sun Shading, Skylight (Natural Lighting) & Low Energy Fittings into the project.

He said: “It is the state’s hope to upgrade the facilities and outlook of wet markets and to do away with the perception of them being smelly and unclean places.

“The state government through both the Penang Municipal Council and the Seberang Prai Muni- cipal Council have spent over RM10mil to upgrade the wet markets on the island and on the mainland.” - The Star

初步概念翻新巴刹店面 乔治市商业改进区现形

（槟城24日讯）乔治市商业改进区计划（BIDS）逐渐“现形”，初步概念中，旧社尾巴刹一带将改头换面，除了翻新巴刹及店面，也提议建立图书馆、文化中心、房屋等。Think City项目经理许仁强在槟州首长林冠英的陪同下，于周四在光大首长办公室向媒体呈献初步概念。商业改进区计划委员会由槟州发展机构担任主席，而Think City与国库控股则为先锋队。
许仁强表示，经过1年半时间与多个单位讨论后才拟出大蓝图，概念建立在5个设计理念上，即衔接、绿意、民众安全、包含性及多元化，可分为5个阶段进行，涉及范围从柑仔园时代广场到加马购物中心、头条路、槟榔路以及林萃龙路。“无论如何，这只是大概念，还未细节化，也不是最后定案，因为与州政府、市政局、私人领域等多方面合作，配合交通大蓝图，还有寻求民众意见等。”
他接着说，该概念中，第1阶段涉及柑仔园路的连接，第2阶段是林萃龙路及头条路、第3阶段将提升光大及新光大，而最后一个阶段是翻新旧社尾巴刹一带区域。他透露，其中新光大顶楼的建议是要设立空中花园、室内足球场、滑板公园等。
他提及，HENG LEE & CO有限公司、玮力产业集团、第一大道广场、新光大、槟州发展机构、加马百货（GAMA）、龙城酒店（Cititel Express）、PLENITUDE公司、乐台居等已纷纷提供建议。林冠英表示，州政府注重绿意及公共空间的提升。民众若有任何意见都可寄至Bidi@thinkcity.com.my。出席者包括槟州发展机构总经理拿督罗斯里、光大区州议员黄伟益等。- 光华

SP Setia has big plans in Penang

GEORGE TOWN: After recently acquiring 21.3 acres in Tanjung Bungah for RM185.6mil, SP Setia Bhd is now looking at an adjacent 14-acre site.

SP Setia Property (North) divisional general manager Datuk S. Rajoosaid the group was now in an advanced stage of negotiation to buy the property.

“We expect to ink the deal soon. The two properties are an integral part of the group's business plan to launch about RM2.5bil worth of properties on the island this year and in 2013,” Rajoo said.

“Land on the island is becoming scarce. Since SP Setia wants to continue playing a dominant role in the property market on the island, it is seizing every opportunity to expand its landbank, capitalising on attractive deals,” he said.

SP Setia's business plans for Penang include the launch of residential and commercial properties worth over RM638mil in the second half of 2012.

In 2013, besides the RM1.1bil project in Tanjung Bungah, SP Setia will also launch a RM175mil condominium project in Sungai Nibong, and the Wave and Breeze condominium projects for Setia Pearl Island, with a gross development value (GDV) of RM350mil and RM300mil respectively.

“In the second half 2012, the key projects include the RM250mil Setia Triangle, the RM335mil Setia Greens 2, and a RM53mil condominium project in Teluk Kumbar,” he said.

The Setia Triangle project on 6.8 acres in Setia Pearl Island comprises two-, three-, and four-storey shop offices with built-up areas of 3,000 sq ft, 4,500 sq ft, and 6,000 sq ft respectively. Each unit will be priced between RM1.95mil and RM3.6mil.

“There will also be a residential component comprising a 225-unit condominium, priced between RM575,000 and RM1.2mil,” Rajoo said.

The Wave consists of 535 condominium units priced from RM300,000 to RM750,000, while the Breeze comprises 450 units with a price tag of RM500,000 onwards.

“The scheme in the Teluk Kumbar development comprises 98 condominium units with built-up areas of 1,000 sq ft and 1,4000 sq ft, priced between RM500,000 and RM700,000.

“To date, we have launched over RM1.1bil worth of residential properties in Setia Pearl Island. Once the Setia Triangle, Wave, and Breeze are launched, the GDV for Setia Pearl Island will rise to RM2bil,” he said.

Rajoo said SP Setia had also recently acquired two pieces of land in Balik Pulau for RM38mil, where the group planned to develop both landed and high-rise properties.

He added that the group's projects in Penang should generate about 15% of the its revenue for the fiscal year ending Oct 31. - The Star

Rehda eyes RM10b 'green allocation'

THE Real Estate and Housing Developers' Association Malaysia (Rehda) is lobbying for a RM10 billion annual allocation from the government to help upgrade existing buildings to be energy efficient.

The association wants this to be in the 2013 Budget.

Rehda president Datuk Seri Michael Yam said the fund would cover up to 30 per cent of the costs to make the buildings green.

With this in mind, the association is also asking the government to recognise other international green certifications like Singapore's Green Mark, Australia's Green Star, UK's BREEAM and the United States' LEED.
This was to enable those buildings already certified with those certifications to qualify for incentives provided by the government, Yam said.

Among other incentives that Rehda is seeking are stamp duty waiver for transfer of green certified properties from developers to buyers for the next five years, and double tax deduction on training expenses incurred by property development firms.

Yam said this yesterday at the launch of "Green Tour KL 2", a showcase of prestigious green rated developments in the Klang Valley.

Green Tour KL 2 is organised by Rehda Youth. It was officiated by Datuk Loo Took Gee, the secretary-general for the Energy, Green Technology and Water Ministry.

Yam said the building sector, at present, contributed about 40 per cent of the global greenhouse gas emissions but added that it could be reduced as green buildings had lower carbon emissions.

Currently, less than 0.5 per cent of all commercial and residential buildings in Kuala Lumpur were green certified, Yam said.

During Green Tour KL 2, projects showcased were the new Rehda headquarters in Kelana Jaya; KEN Rimba, Legian Residences, a project by KEN Holdings Bhd in Shah Alam; 11 Mont Kiara by Sunrise Bhd, a unit of UEM Land Holdings Bhd; Sime Darby Idea House in Shah Alam; and S11 House here. - Business Times

大吉隆坡放眼全球20大城市 科技专家：需克服四大挑战

在打造智能城市（Smart City）方面经验丰富的跨国企业IBM指出，大吉隆坡/大巴生谷（Greater KL/Klang Valley）想要在2020年之际，在经济增长方面排名全球前20大，并成为全球20大最适合居住的城市，就必须克服眼前四大挑战，包括如何成为外资投资首选地点、打造绿色环境、提升公共交通使用率，以及营造适合居住的城市环境。

IBM东盟区荣誉工程师兼科技总监冯修文(译音，Foong Sew Bun)今天出席由亚洲策略与领导机构（ASLI）主办的《第二届大吉隆坡全国峰会》时表示，大吉隆坡/大巴生谷放眼在2020年之际，实现“20-20”目标，即在经济增长方面排名全球前20大，并成为全球20大最适合居住的城市。

他认为，如果大吉隆坡想要达到以上目标，就必须克服眼前四大挑战包括如何成为外资投资首选地点、打造绿色环境、提升公共交通使用率，以及营造适合居住的城市环境。

马来西亚并非外资公司的首选投资地点，目前只有1600家外资公司来马投资和营运。相比之下，新加坡有6000家外资公司、中国北京有4000家外资公司，而中国上海则有1万7000家外资公司。- Merdeka Review

Mah Sing's land buying since 2010 exceeds RM1b

KUALA LUMPUR (May 22): Mah Sing Group Bhd's active landbanking moves have seen the developer acquiring some RM1.08 billion worth of tracts across Malaysia in the last two years, including Monday's acquisition of 412 acres (165ha) in Selangor's Bangi enclave of RM333.25 million principally from the Loh's family.

Before Monday's acquisition, Mah Sing had acquired some 555 acres for a collective value of RM750 million, according to the developer's filings with the exchange between April 2010 and February 2012.

Notable deals in terms of value include the acquisition of seven parcels of contiguous residential freehold land measuring 61.03 acres  in Penang's Batu Ferringhi enclave for RM157.3 million, 4.7 acres in Kuala Lumpur for RM114.91 million, and 51.38 acres in Kinrara for RM178.4 million.

In a statement to the exchange Monday, Mah Sing said the Bangi tracts, a portion of which fronts the North-South Highway, are expected to accommodate the developer's planned RM2.15 billion township to be known as Southville City. Notable landmarks nearby include Universiti Kebangsaan Malaysia and the Sony factory.

Mah Sing via its wholly-owned unit Tristar Acres Sdn Bhd is acquiring eight parcels of adjacent freehold land with a net area of 408.24 acres for RM330.77 million from Boon Siew Development Sdn Bhd. The company is also acquiring a nearby 4.12-acre  leasehold tract for RM2.48 million from individual owner Wong Hong Foi. In square feet terms, these freehold and leasehold tracts have a combined area of 17.96 million sq ft which translates into a price of RM18.55 psf

"Tristar will be submitting the relevant proposed development plans to the relevant authorities for approval. Therefore, it is too preliminary at this stage to ascertain the total development cost and the expected profits to be derived from the proposed development.

"Subject to authorities' approval, the proposed development is expected to commence by the first half of 2013. Awareness programme and registration of interest for Southville City are expected to commence in the third quarter of 2012," Mah Sing said.

The developer said its plans to finance the land acquisition and development cost for the Bangi tracts with internally-generated funds and bank loans. Mah Sing's latest balance sheet shows that it had a cash pile of RM665.72 million as at Dec 31, against debt obligations of RM706.11 million, translating into a net debt of RM40.39 million. Its retained earnings stood at RM496.77 million then.

According to Mah Sing, the proposed land purchase is in tandem with its strategy to buy strategic larger tracts with the potential for township projects with high development value.

Based on preliminary plans, the developer said it would set aside some 30% of Southville City for commercial development and that the initial phase of the project could see the construction of double-storey linked homes.

The residential units will have an indicative price of RM530,000 onwards, it said. Looking ahead, the firm said it plans to develop semi-detached units and bungalows in subsequent phases of the project.

"As close to 70% of the residential component will be priced below RM1 million, this proposed development will provide an opportunity for the group to balance and complement the group's existing product portfolio to meet the strong market demand for bread and butter properties," Mah Sing said.

In a note, RHB Research said Mah Sing's latest land purchase at RM18.55 psf  is "arguably reasonable", taking into account that the sites have a 2km stretch fronting the North-South Highway. The price Mah Sing is paying is benchmarked against rival developers S P Setia Bhd and UEM Land Holdings Bhd's transaction price of RM13 psf and the current land price of between RM25 and RM28 psf in Kajang, according to RHB.

"The land is now occupied by matured oil palm trees. Mah Sing plans to build a new interchange on the North-South Highway just 2.5km away from the existing Bangi interchange to allow direct access to its site.

"Hence, including the infra cost, effective land price could be about RM20-RM21 psf," wrote RHB which values Mah Sing shares at RM2.10 with a "market perform" call.

In a separate statement, Mah Sing group managing director and chief executive Tan Sri Leong Hoy Kum said with its latest land acquisition in Bangi, the developer has fulfilled 73% of its 2012 full-year landbanking goal of buying tracts which can generate a combined gross development value of RM5 billion.

"The group is still actively scouting for more prime land suitable for developments which meet market demand. The land must also fit the group's quick turnaround business model and the group is keen on both privately held land as well as government land that will be developed by the private sector," Leong said. - The Edge Property