Tian Global to start new project after JV talks

By THE STAR

KUALA LUMPUR: Niche property developer Tian Global Sdn Bhd plans to embark on another project after it has concluded talks on a joint venture.

Chief executive officer Datuk Loy Teik Ngan said the company was “earnestly talking to one (potential) partner.”

Since the completion of its maiden project, Flora Murni at Mont' Kiara, the company had been approached by a few parties to form a joint venture to develop their land.

“The next project would most likely be a condominium in Kuala Lumpur. However, nothing can be confirmed yet as the ball is in the other side of the court,” he said during a media briefing and tour of Flora Murni yesterday.

Loy said there were sceptics when he first set up Tian Global – a personal investment vehicle – to undertake property development. However, the first project had been a good showpiece, which Loy hoped people would appreciate.

When launched in 2004, it was sold at RM285 per sq ft (psf) but had since appreciated to over RM550 psf.

Datuk Loy Teik Ngan (left) and project director Evan Horsnell in the duplex condominium show unit at Flora Murni in Mont’ Kiara

Loy said Flora Murni had a gross development value of RM90mil, comprising 71 bungalows, semi-detached houses and condominium units. Most units are sold, with seven condo units still held by the company to be sold later.

Flora Murni is a gated, high-end residential property, developed on 3.5 acres.

On the acquisition of more land, Loy said: “We plan to acquire more land to create small, boutique development and to keep it special. We are looking at the Klang Valley.

“If we have to buy, we will just buy. Otherwise, the next best thing is to set up joint venture with land owners.”

Meanwhile, on the termination of talks between MBF Corp Bhd and OSK Holdings Bhd on the latter's acquisition of 49% equity interest in QBE Insurance (M) Bhd, Loy, who is also MBF chief executive, said the company was exploring other options.

“Maybe we will sell or keep, but there is no decision yet,” he said, adding that MBF was also looking into being taken out of the PN17 status as soon as possible.

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BBT-One set to be new Klang landmark

By BUSINESS TIMES

PROPERTY developer WCT Land Bhd has opened sales for BBT-One, its first commercial complex in Klang's Bandar Bukit Tinggi 1 that includes two office towers and a four-star hotel.

The RM145 million project is built on a 2.83ha piece of land and consists of 20 units of four-storey shop-office, a 192-room business hotel and 270,000 sq ft of Grade B office space in twin buildings.

Construction began one-and-a-half years ago and will be completed by the middle of 2008.

"We expect to officially launch BBT-One in June this year," WCT Land executive director and chief operating officer Lai Yeng Fock told Business Times in an interview.

All 20 units of its shop-office of 26ft by 90ft have been sold out and Lai is confident that the BBT-One office towers will receive a similar response, taking into consideration its location in Bandar Bukit Tinggi.

The development is strategically located along Jalan Langat, next to the existing Tesco hypermarket and within close proximity of the Giant hypermarket and the Aeon Bukit Tinggi Shopping Centre, which is taking shape on a 10.52ha site in Bandar Bukit Tinggi 2 and is expected to be ready by year-end.

Lai said with the retail outlets including restaurants and convenience stores located nearby, companies will be attracted to locate their operations there.

It is targeting port-related services and equipment companies serving the port industry including banks, shipping agents and marine insurance companies to take up space in its new office buildings.

"The BBT-One commercial complex will change the skyline of southern Klang, which currently lacks high-rise office buildings that incorporate the latest technologies, security surveillance systems and modern facade," said Lai.

WCT Land plans to keep one of the office towers (Tower A with 120,000 sq ft of floor area) and lease it, and sell Tower B with 150,000 sq ft of floor area on a strata basis.

This is in line with the group's plans to increase its recurring income in the form of land and real estate rentals in the future to ensure long-term earnings stability.

The group is expecting recurring income to make up about 20 per cent of its future revenue.

"However, our plans may change and we may sell both towers if we receive a good offer," said Lai.

The developer is pricing the office space from RM298 per sq ft onwards, which is within the RM250 to RM350 per sq ft range currently offered by other commercial properties.

For the hotel portion of the development, Lai said it has no plans to sell the hotel.

It is set to enter into an agreement with Allson International Hotels & Resorts, a member of The Sunway Group, for the latter to manage the hotel under the Allson brand.

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KL Kepong to develop RM1.6b township in Sg Buloh

By THE EDGE

Kuala Lumpur Kepong Bhd (KL Kepong) will launch its 404ha integrated township in Sungai Buloh early next year as the first step in unlocking the value of its 2,828ha plantation land identified for property development in that area.

Its director Datuk Lee Hau Hian said the new township, which would have an eventual gross development value of RM1.6 billion, would keep the company busy “for a few years at least”.

Speaking to reporters after a signing ceremony to launch its five-year Sukuk Ijarah Islamic Commercial Papers (ICP) / Islamic Medium Term notes (IMTN) to raise RM500 million in Kuala Lumpur on April 25, Lee said property development was not new to the company, as it had carried out other such developments before.

The property projects developed by KL Kepong include the Sierramas development via a joint venture in Kumpulan Sierramas (M) Sdn Bhd, and the ongoing 92.9ha Desa Coalfields mixed development. Both the projects are in Sungai Buloh.

“The available land in Sungai Buloh can be developed over the next 10 to 20 years, and the type of properties to be developed would depend on the demand,” he said.

On the private debt securities, Lee said up to RM210 million from the proceeds of the issue would be used to refinance its existing bank borrowings while the rest to finance future Syariah-compliant investments and working capital requirements.

Aseambankers Malaysia Bhd and CIMB Investment Bank Bhd are joint lead arrangers as well as joint lead managers and joint book runners for the Sukuk Ijarah programme.

The Sukuk Ijarah programme allows KL Kepong to issue ICP and/or IMTN of different tenors to meet its short- to medium-term funding requirements, with the flexibility to issue ICPs in tenors of below 12 months and IMTNs in tenors of one year to five years.

Lee said the proceeds from the issue would also allow the company to continue with its plantation expansion plans and further downstream development of its oleochemicals and resource-based manufacturing activities.

“Our plantation landbank will increase to 205,000ha upon completion of our recent proposed acquisitions of 22,000ha in central Kalimantan.

“Over the next few years, we hope to increase our total landbank to 250,000ha with future acquisitions coming mainly from Indonesia. At the same time, our goal is to continue to plant up between 10,000ha and 15,000ha annually in Indonesia,” he said.

Lee said the company was optimistic that crude palm oil prices would remain around RM2,000 per tonne for the rest of the year, supported by continued demand from growth in edible oil usage in China and India, as well as from the biodiesel sector.

“The continuing trend of replacing non-renewable petroleum-based products with oleo-based products extracted from renewable vegetable oils would also support our optimism,” he said.

On its acquisition of Swiss-based Dr W Kolb Holdings AG, a specialty oleochemical holdings company, last December, Lee said it was part of its downstream integration and that the company was synergistic with its oleochemical operations, adding that it enabled KL Kepong to develop immediate market penetration in Europe.

He said KL Kepong would supply fatty alcohol and fatty acids to Kolb from its new fatty alcohol plant being commissioned at Westport, Port Klang, and expected its annual worldwide oleochemicals production capacity to reach 772,000 tonnes by year-end.

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Vietnam park wooing investors

By THE STAR

HO CHI MINH: Vietnam Singapore Industrial Park (VSIP1) wants more Malaysian companies to set up operations in its expanded industrial area and boost Malaysia's US$83mil capital investment in the area.

VSIP JV Co Ltd executive director and deputy chief executive officer Hunyh Quang Hai said this recent investment figure was derived from the 11 Malaysian companies located in VSIP1.

He said good response from investors to VSIP1 had led to the opening of a second industrial park called VSIP2. The total area of both parks was close to 1,000ha, he added.

“This allows about 500 companies to set up their operations,” he told StarBiz after a briefing for about 50 foreign delegates from the Vietnam Economic Forum on Tuesday.

Hunyh said Malaysian company Alcamax Packaging VN Co Ltd was the first to set up operations in VSIP1 in 1997.

To date, he said, VSIP1 had attracted about 300 projects from 22 countries, with capital investment of over US$1.5bil.

Hunyh added that since VSIP1’s official launch in 1996, it had been attracting various multinational corporations to establish manufacturing bases catering to the local and export markets.

Among Malaysian companies that have set up their base in VSIP1 are Woventex (Vietnam) Co Ltd, Poly Tower (Kinsplastic), Kian Joo Can Vietnam Co Ltd and Perstima (Vietnam) Co Ltd. They cover industries such as packaging, garment and canning.

Earlier at the briefing, Hunyh told delegates that seven Malaysian companies had invested in VSIP2. Both VSIPs are located in the Binh Duong Province, some 30km from the city centre.

The delegates were also taken on a tour of some companies operating in VSIP1. Countries that have invested in VSIP1 include Taiwan, Japan, South Korea, the US and Germany.

The tour was part of the two-day Vietnam: Modernisation and Regional Integration forum organised by The Asia News Network, Vietnam’s Planning and Investment Ministry and Vietnam News.

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The Cova attracts brisk sales

By THE STAR

SUBANG JAYA: Despite being a relatively new player in the property industry, Andaman Group Sdn Bhd appears to have struck a chord among buyers with its latest project.

The Cova in Kota Damansara, which has a gross development value of RM332mil, has raked in sales of RM252mil within 10 months of its launch last June.

The mixed development project comprises 346 apartments, 64 retail units, 268 small office home office (SOHO) units and 386 condominium units. The Cova is being developed over three phases: Cova Villa, Cova Square and Cova Suites.

Andaman Property Services Sdn Bhd chief executive officer B.H. Tan said 60% of the condominiums (known as Cova Suites) had been sold since their official launch on April 13. Andaman Property Services is a unit of Andaman Group.

“We had a remarkable crowd that weekend. Over four days, we sold 100 units for RM30mil,” he told StarBiz.

As competition increased, Tan said developers had to inject creativity and innovation into their products.

B.H. Tan with a model of the Cova development

“Buyers are now very knowledgeable and particular about what they are looking for,” he said.

Cova Suites, with built-up areas ranging from 1,059 to 2,850 sq ft, are priced from RM259,800. The condominiums are housed in three blocks.

Tan added that buyers ought to make purchases based on the good return value, especially yield and capital appreciation.

Each unit comes with three parking bays, three years' defect liability period, three years' free maintenance and three air-conditioners.

Tan said such benefits would help reduce the burden on buyers.

“Rather than offer a discount, we want to give something that is tangible.

“By giving three years' defect liability period compared with the standard two years, buyers can be assured they will not be short-changed and we will deliver property that is of good quality.

“As for the free maintenance for three years, it will serve young families very well as they can plan their finances properly and allocate money for other matters,” he added.

Although one can dismiss Cova Suites as just another condominium development, Andaman Group aims to create something unique.

“We want to be practical in our design as well as the facilities we provide to buyers. We observe what is popular with buyers.

“Therefore, you will not find tennis courts at Cova Suites. Instead, we will provide facilities such as sky garden, lap pool and infinity pool,” Tan said.

The Cova is scheduled for completion in 2010.

The development is located opposite the Sri KDU Smart School, SEGi College and Tropicana Medical School, and accessible via the Sprint Highway (Penchala Link), Lebuhraya Damansara-Puchong, New Klang Valley Expressway and North-South Expressway.

Andaman Group has also acquired land opposite The Cova for commercial development, tentatively scheduled for launch in July.

Tan described the Cova Corporate City as an “iconic development”.

“It will be a corporate headquarters development, which is suitable for emerging companies,” he said.

The RM350mil Cova Corporate City will have several office towers of different facades and built-up areas.

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Lien Hoe sells unit for RM65mil

By THE STAR

KUALA LUMPUR: Lien Hoe Corp Bhd has agreed to sell its wholly-owned subsidiary Billiontex Industries Sdn Bhd to property company Perfect Eagle Development Sdn Bhd for RM65mil.

Billiontex’s sole asset is a piece of leasehold land measuring 259,050 sq m in Seri Kembangan, Selangor, Lien Hoe told the stock exchange.

It added that the sale consideration was negotiated on a willing-buyer, willing-seller basis after taking into consideration the selling price of RM251 per sq m for the land.

Lien Hoe said the proposed sale “is in line with the company’s strategy and plan to raise cash through sale of assets for debt repayment.”

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