MONTH: August 2012 ISSUE: 08/2012

Property

News

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The Research Division provides core real estate information to clients and internal departments in order to ensure accurate real estate decision-making. Our research team has completed market studies and research work for various ongoing development schemes within Klang Valley, providing comprehensive economic analysis, property PA INTERNATIONAL market information, forecasts and consulting advice based PROPERTY CONSULTANTS (KL) SDN BHD on reliable sources. Phone: 03-7958 5933 Fax: 03-7957 5933 We constantly strive to present the most up-to-date Website: http://www.pa.com.my market knowledge in order to ensure clients are well- Email: [email protected] armed with sufficient data to make the right property

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Issue 08: 1- 31 August 2012

GENERAL ECONOMIC & PROPERTY MARKET

1. Mah Sing may land up to RM150m deals in Klang Valley (Business Times, 09-August-2012) . Mah Sing Group Bhd (Mah Sing), the sixth largest property stock by market capitalisation, is expected to ink one or two deals to buy land in the Klang Valley for between RM100 million and RM150 million in the next quarter. . The group is targeting to acquire land with gross development value (GDV) of RM5 billion this year. The group has acquired land in Rawang, Kota Kinabalu and Bandar Baru Bangi for a combined RM452.3 million, which is 73 per cent of its GDV target. . The land cost translates to about 12% of the RM3.65 billion GDV that it has achieved. . According to Group managing director and group chief executive Tan Sri Leong Hoy Kum, Mah Sing is buying a large piece of land in the Klang Valley to build mixed landed properties. . He declined to elaborate on the proposed development and land cost. . Mah Sing has 39 residential, commercial and industrial projects, with remaining GDV and unbilled sales of RM18.2billion. Its undeveloped landbank of 613ha has an estimated GDV of RM15.6billion. . According to its 2011 annual report, its cash and bank balances stand at a healthy RM665 million. Its borrowings are at RM705.5 million plus redeemable convertible secured bonds of RM268.3million.

2. TMC sells shares, Penang property (Business Times, 09-August-2012) . TMC Life Sciences Bhd (TMC) has sold shares in Tropicana Medical Centre (Penang) Sdn Bhd (TMCP) for RM2.6 million. . TMC Life Sciences also announced the sale of property in Penang by TMC Properties Sdn Bhd, its wholly- owned subsidiary, for RM11 million cash. . The buyer for the property and shares is Carl Corryntan Holdings Sdn Bhd, an investment holding company. . The share sale is in line with its objective to divest investments which yield negative returns and re-deploy resources for more productive purposes, TMC said in a filing.

3. KSL allocates RM200 million to increase Klang Valley landbank (The Star, 21-August-2012) . KSL Holdings Bhd, the -based developer is in the process of increasing its current 500-acre landbank in the Klang Valley. . Khoo Soon Lee Realty Sdn Bhd, a unit of KSL, is to embark on its maiden Klang Valley project, Canary Garden, at Bandar Bestari, Klang. . Project director Patrick Khoo Keng Ghiap (the one who is responsible to oversee the project) said that the company had allocated RM100 million to RM200 million to increase its landbank in the Klang Valley in a year. . Khoo added, KSL’s gearing of 0.3 is relatively low New project: Khoo Soon Lee Realty sales and compared to the other players, hence KSL marketing head Chris Fong showing a model of the Canary Garden project in Klang definitely has to buy new land in order to generate income.

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. Currently, quality land in the Klang Valley is limited, and KSL just have to wait for the right opportunities, said Khoo. . Some of the factors to consider when acquiring land are the plot ratio and location. . Khoo said that KSL would like to focus on the Klang Valley and did not have plans to expand to other states like Penang or Malacca at the moment. . Khoo explained that the developer want to do it one step at a time and would like to build their name as a main developer in Klang. . The developer moved from its base to the Klang Valley due to better margins, Khoo said. . KSL is also working on the next project, a 50-unit condominium development in Ampang Hilir, Kuala Lumpur. It will sit on a 0.8 acre and is expected be completed in 2015. . The condominium, starting from 2,000 sq ft, works out to RM2.6 million or more per unit.

4. Developers face tougher times with global uncertainties and price hikes (The Star, 22-August-2012) . Property developers in Johor must be ready to face tougher times within the next 6 to 12 months in view of the uncertainties in the global economic growth. . Johor Real Estate and Housing Developers Association (REHDA) branch chairman Koh Moo Hing said they should be optimistically cautious as the outlook was not expected to be rosy. . Koh said property price in Johor, especially in Iskandar , would also be increased by at least 5% in months to come as the hike was unavoidable. . He said with the prices of building materials especially cement, likely to go up and shortage of workers, developers would have not much choice but to pass the cost to consumers. . Koh advised developers to carefully plan when launching a project this year and next and go for products that could still sell in an unfavourable property market. . Although there will be a hike in prices of properties in , it is still not as high as those in the Klang Valley and Penang, Koh said, adding that developers could expect demand for properties in Iskandar Malaysia to remain positive especially from time house buyers and upgraders. . On that note, Koh said many developers in Iskandar were now going for high-density living to fully utilise or maximise the cost of buying the land. There is a shift in demand for high-rise apartment living in Iskandar from younger house buyers in their late 20s to early 30s. . Koh said unlike the older generation who still preferred landed properties, the younger generation were more receptive to apartment living because of the safety and security issues as well as easy maintenance for their abode. . He added, the popular locations included , Nusajaya, Taman Sutera Utama and IOI Kempas Utama, Kempas, with a selling price of RM400 to RM450 per sq ft for a 1,200 sq ft apartment unit.

5. EPF finalises land purchase for RM2.28 billion (The Edge Property, 27-August-2012) Descriptions . Kwasa Land Sdn Bhd, a wholly-owned subsidiary of the Employees Provident Fund (EPF) has finalised the purchase price at RM2.28 billion for 93.2 hectares (2,330 acres) of prime Rubber Research Institute (RRI) land in Sungai Buloh. New Kwasa Damansara . According to Kwasa Land Chairman Tan Sri Samsudin Osman, the new Kwasa Damansara township township development would incorporate plans that are befitting of a city, replete with infrastructure and modern facilities, both residential and commercial that aim to serve the entire Damansara area, if not the Klang Valley. . The proposed township development is expected to create abundant opportunities for developers and contractors to participate in developing residential and commercial properties, main infrastructures and public amenities for an expected 150,000 population.

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. Among key features in the design and layout plans are a development hub comprising modern residential, commercial, recreation and education facilities. . It will also incorporate an integrated transportation system that links the township via Mass Rail Transit (MRT) to the rest of the Klang Valley. Notes . Kwasa Land has established itself as a master developer and an investment holding company for the entire development of the township that has been given a 15-year construction lifespan.

6. EPF’s investment creates fresh competition (Business Times, 29-August-2012) . Tan Sri Lee Kim Yew, the founder of Country Heights Holding Sdn Bhd said that the entry of the Employees Provident Fund (EPF) as a big investor in real estate will create more challenges for the sector. . According to Tan Sri Lee Kim Yew, EPF is going to be one of the biggest developers in the recent land acquisition in Sungai Buloh. There is also competition from boutique developers and government agencies that have embarked on property development. . The EPF’s wholly-owned unit, Kwasa Land Sdn Bhd, has acquired 932 hectares of Rubber Research Institute (RRI) in Sungai Buloh from the Malaysian Rubber Board for RM2.3 billion. . Tan Sri Lee Kim Yew said, other challenges faced by the industry included inconsistent government policies by booth federal and state governments. . He added, the building of low cost houses in creating a slump in the market place and does not fulfil the requirement of a quality lifestyle. . Since the 1980’s, developers are required to build low-cost houses priced RM42,000 a unit and below. . However, the increasing cost of raw materials is causing them to lose money from each house built and the take up by the lower income group has been slow. . The issue has been raised numerous times by the Real Estate and Housing Developers’ Association (REHDA), which comprises more than 1,000 members for several years now. . REHDA president Datuk Seri Micheal Yam added that there should be a shift from low-cost housing to affordable homes. . He said, there is a lot of demand for properties priced between RM150,000 and RM300,000 and REHDA is appealing to the government to study the current market demand and situation. . Glomac Bhd group managing director and chief executive officer Datuk Fateh Iskandar Mahamed feels that the property market will face new challenges going forward. . Datuk Fateh Iskandar Mohamed also said that the bankers are still overzealous in end financing. The cost of doing business has also increased in compliance cost, which is now about 30% of total construction expenditure, not related to enhancement of property.

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RESIDENTIAL PROPERTY IN KLANG VALLEY

7. E&O to launch 3 projects with RM1 billion GDV (The Sun, 02-August-2012) E&O plans RM1 billion projects (Business News, 03-August-2012) . Eastern & Oriental Bhd (E&O) will be launching three more condominium projects with a total gross development value of about RM1 billion, within the next six months. The projects are in Kuala Lumpur, Johor and Penang.

PROJECT NAME N/A Medini Integrated Wellness Capital Andaman at Quayside Location Jalan Yap Kwan Seng, Iskandar Malaysia, Johor Seri Tanjung Pinang, Penang Kuala Lumpur Descibtions Located on a 0.5-hectare . It is the first phase of the RM3 . It is the 2nd tower of land billion Medini Integrated Andaman at Quayside Wellness Capital. Condominium. . Expected to be launched in 2013 . Expected to be launched by . A revised master plan for the end of August 2012. Medini Integrated Wellness Capital has been submitted and the developer is waiting for the approval.

. Other than the above, E&O have a joint-venture project with Lion Group known as St Mary Residences located on Jalan Tengah, Kuala Lumpur. This newly completed project is a 1.6- hectare project featuring a 0.5-hectare park and 2-storey retail annex. Comprising 457-units of luxury apartments, units in St Mary Residences are currently 95% sold with one-third of the purchasers being foreigners. . E&O deputy managing director, Eric Chan said that the rental yield for St Mary Residences is at least 5%, with early purchasers enjoying up to 7% rental yield due to capital appreciation. He added, E&O projects traditionally enjoy a capital of 20% to 35%. . Meanwhile, the E&O’s first luxury apartment project in Kuala Eric Chan with a model of the St Mary Lumpur known as E&O Residences offers 200 units of serviced Residences apartments and will be managed by the group. The apartment units, which include 16 penthouses and 4 super penthouses, were sold between RM1.5 million and RM12.18 million. All the apartment units are 100% sold while the penthouse units will be offered for sale soon. . Chan said in collaboration with Lamborghini KL, buyers of the super penthouses will be offered an option to purchase a limited edition Lamborghini priced at RM1.68 million. . He added that the rental price will be between RM5.50 and RM8 per sq ft. The smallest unit is a studio suite measuring 1,131 sq ft while the biggest is the penthouse unit with a size of 6,759 sq ft. . E&O Residences also comprise a retail centre of over 34,400 sq ft, which is expected to be fully occupied by the end of 2012. Chan added, half of the retail spaces have been taken up.

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8. DUAL KEY APARTMENTS ON THE RISE (The Sun, 03-August-2012) . According to Knight Frank’s 1st Half 2012 Real Estate Highlights report, the dual-key concept is steadily gaining acceptance and popularity among developers and purchasers. . These types of units have a studio apartments attached to an otherwise standard condominium unit. There are two separate doors – one leading to the studio apartment and one leading to the adjoining unit, both of which share a common foyer. . Dual-key units are specifically tailored for convenience, privacy, rental potential and configuration flexibility to target owners who want to live with their parents or live-in buyers who wish to rent the separate portion, without compromising on privacy. . Developments that cater to dual-key design include Verticas Residensi, The Loft Service Residence @ Zetapark in Setapak and AraGreens Residences in Ara Damansara. According to the property consultants, all three projects recorded good take-up rates.

9. 2ND KLANG VALLEY MAPEX (The Sun, 03-August-2012) Event Malaysia Property Expo (MAPEX) 2012 Organiser Real Estate Housing Developers’ Association Malaysia (REHDA) Date 19th October 2012 until 21st October 2012 Venue Mid Valley Exhibition Centre, Kuala Lumpur Theme Home and Abroad Participants / features . Booths by more than 50 developers include: - SP Setia Bhd - Sime Darby Properties - Perbadanan Kemajuan Negeri Selangor (PKNS) - IJM Properties Sdn Bhd - Berjaya Land Bhd - I&P Group Sdn Bhd - Lebar Daun Sdn Bhd - Sunway Integrated Properties . Financial institutions such as: - Tribunal for Homebuyers’ Claim - Treasury Housing Loan Division - EPF (KWSP) - National Housing Department of the Ministry of Housing and Local Government . Talks by experts in the property investment and legal fields.

10. SPNB to deliver 10,000 homes (The Star, 09-August-2012) Programme 1Malaysia People-friendly Home (RMR1M) Descriptions . Syarikat Perumahan Negara Bhd (SPNB) is focusing on delivering 10,000 houses this year under the 1Malaysia People-friendly Home (RMR1M) programme. . Managing director Datuk Kamarul Rashdan Salleh said there were 14,000 applicants under the programme, which was developed to help low-income earners, such as fishermen and farmers, who own a piece of land. . Currently, there are 14,000 applicants under this RMR1M programme. RMR1’s conditions Applicants must be: . Household income of applicants must not exceed RM3,000 per month . Buyer must not be owning a house or living in an old, incomplete or dilapidated house. Notes . SPNB, a unit of Minister of Finance Inc is established in 1997 to provide affordable housing in accordance with the national housing objective. . On the rehabilitation of abandoned housings, SPNB has completed 85 projects involving 25,283 units with investment of RM613 million.

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. According to Datuk Kamarul, SPNB is currently in the process of rehabilitating 7 abandoned projects involving 3,109 units with the cost of RM244 million. . He added, in 2010 the Government decided that the responsibility of rehabilitating abandoned housing projects in Malaysia would be taken over by the National Housing Development.

11. Apartment with a view (MetroBiz, 10-August-2012) PROJECT NAME Zeva Location Equine South, Seri Kembangan Developer Trinity Group Type A mixed development project comprises; . Block A & B: 446 units of serviced-apartments . Block C: 320 units of studio apartments . Zeva point: 12 units of shops Development land area 1.3-hectare Land tenure Leasehold Launching date . Block A & B : Early 2012 . Block C: August 2012 (Expected) Awesome experience: This unique deck is Take-up rate . Block A & B : 90% the first of its kind in the region and is . Block C: Yet to be launched inspired by a tourist attraction in Chicago. Built-up area Studio units: 455 sq ft – 638 sq ft Developer’s selling price Studio units: From RM220,000 Facilities . Three-tier sky terrace . Olympic length infinity pool . Four-tier of security features . Floating gymnasium (overlooking the pool) . Garden-concept café with Wi-Fi hotspot . Sky club with pool centre 400 ft above ground level Notes . The studio units feature a unique glass deck on the rooftop. . Zeva is located in a strategic area as it is accessible to many expressways and highways as well as public amenities.

12. Island of architectural design (MetroBiz, 10-August-2012) PROJECT NAME Setia Eco Glades Location Cyberjaya Developer Joint venture between SP Setia Bhd and Setia Harum Sdn Bhd Type / units . Phase A1 / Liu Li: 104 linked villas . Phase B / Lepironia Gardens: 104 semi-detached houses . Phase 3 / Charm of Nusantara: a) 30 linked villas b) 34 semi-detached houses c) 11 bungalows . Other phases: a) Sanctuary of Eastern Heritage b) Sanctuary of Western Heritage c) Isles of Kamares d) Jewels of Grasmere Selling points: An SP Setia sales e) Glades of Westlake executive lists out the advantages of Development land area 108.45-hectare Setia Eco Glades’ architectural style Gross Development Value RM3 billion and landscaping to prospective (GDV) buyers.

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Land tenure Freehold Launching date 20th July 2012 Built-up area . Phase A1 / Liu Li: 2,835 sq ft – 3,130 sq ft (263.4 sq m – 290.8 sq m) . Phase B / Lepironia Gardens: 3,251 sq ft (302 sq m) Developer’s selling price . Phase A1 / Liu Li: From RM1.1 million . Phase B / Lepironia Gardens: From RM1.7 million . Phase 3 / Charm of Nusantara: a) Linked villas – From RM 1.2 million b) Semi-detached houses – From RM 1.8 million c) Bungalows – From RM 2.4 million Favourable factors . Easy access via Elite Highway and Maju Expressway. . Located 20-minute driving distance to the city centre and Kuala Lumpur International Airport. Notes . Charm of Nusantara which is inspired from traditional Balinese architecture is also known as ‘island’ as it is located besides an artificial lake. . The Sanctuary of Eastern Heritage is inspired by Peranakan-style architecture while the Sanctuary of Western Heritage is inspired by the late renaissance / early colonial aesthetic. . Other islands such as Isles of Kamares will implement elements from Mediterranean and Grecian style; Jewels of Grasmere with elements of the English countryside; and Glades of Westlake modelled after China’s Xi Hu in Hangzhou.

13. Chor asks PR1MA coordinating unit to fast-track low-cost housing projects (The Edge Property, 14- August-2012) . Housing and Local Government Minister Datuk Seri Chor Chee Heung has asked the unit coordinating the 1Malaysia Housing Programme (PR1MA) to fast-track their projects as many applicants are still on the waiting list. . He said many low-income earners have applied for houses under the government's PR1MA programme. . Information on PR1MA projects should also be published on the PR1MA website for the people's benefit. . He added, the Government wants the people to understand the programme so that eligible applicants can apply for the houses. . The PR1MA housing programme aims to provide middle-income earners in cities nationwide the opportunity to own their first home at reasonable prices of between RM150,000 and RM300,000 depending on the location. . The minister said that the government sees the need to mitigate the financial burden of young middle- income earners due to the high cost of living particularly in urban areas. Therefore, housing industry players must play their role in helping the people in need of houses.

14. Making way for affordable homes (Business Times, 15-August-2012) . The government must free some of its land to make way for affordable houses to address the current pent- up demand situation. . Real Estate and Housing Developers Association Malaysia (REHDA) president Datuk Seri Micheal Yam Kong Choy said it must act now before the situation becomes critical. . As of now, Malaysia needs 180,000 homes a year but the industry can only supply 100,000 units. One of the many ways to counter this problem is to identify federal or state lands which can be converted into affordable housing schemes, said Datuk Seri Micheal Yam Kong Choy. . Datuk Seri Micheal Yam Kong Choy is presenting a paper at the roundtable discussion on “Housing Affordability – Issues and Challenges”, launched by Housing and Local Government Minister Datuk Seri Chor Chee Heung.

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15. Efforts to curb property speculation (Business Times, 15-August-2012) . The government will initiate measures to address various issues gripping the property sectors, including curbing rampant speculative activities in the market. . Housing and the Local Government Minister Datuk Seri Chor Chee Heung said that he would present to the cabinet findings of an industry meeting which could be used to come up with innovative ways to build affordable homes. . Malaysia government have done fairly well in adressing the housing issues of the lower income. However, 40% of the medium-income society still need accommodation. . The govenment will put forward recommendations, which will be based on proposal made by Real Estate and Housing Developers Association Malasia (REHDA) such as on how to curb speculative property prices, financing, abandoned projects and sluggish developments.

16. Govt urged to fine-tune Bumi quota (Business Times, 15-August-2012) . National House Buyers Association secretary general Chang Kim Loong said the average Malaysian in a major urban area are struggling to buy their dream home where the average household with income of RM5,962 in 2009 would not be able to qualify for a 90% loan over a 30-year period. . Assuming the average household income rises 15% in 2012, the household may still not qualify for a 90% loan in far areas such as Kajang, let alone hot areas such as Kuala Lumpur. . He added that the government must fine-tune the Bumiputera quota which has not made any headways.

17. Strong sales for first homes released at Setia Eco Glades (The Edge Property, 17-August-2012) PROJECT NAME Setia Eco Glades Location Cyberjaya (Located next to the 400-acre Cyberjaya Lake Garden) Developer A 70:30 joint venture between SP Setia Bhd and Setia Haruman Sdn Bhd Type / units . Link houses : 80 units . Semi-detached : 91 units . Bungalows : 6 units . Total : 177 units Development land area 268-acre / 108-hectare About 500 registrants turned up to Gross Development Value RM3 billion participate in the balloting at Cyberview (GDV) Resort & Spa Take-up rate 80% Built-up area . Link houses : 2,400 sq ft . Semi-detached : 3,100 sq ft . Bungalows : 4,500 sq ft Developer’s selling price . Link houses : from RM1.044 million . Semi-detached : from RM1.6 million . Bungalows : from RM1.8 million Notes . The developer will build an interchange between the development and the Putrajaya link, which is directly linked to the North South Central-Link (Elite) and Maju Expressway (MEX), which will cost RM35 million. . Once the interchange is completed, Setia Eco Glades Sdn Bhd’s Koe Peng Kang says it will take only 20 minutes to go to Kuala Lumpur and 15 minutes to the Kuala Lumpur International Airport. . The project will take about six years to complete.

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18. Wait over for apartment residents (The Sun, 15-August-2012) . After 7 years of waiting, the Certificate of Fitness (CF) has finally been issued to Prima Tiara 1 and Prima Tiara 2 apartments in Taman Seri Sinar, Kuala Lumpur. . Segambut MP Lim Lip Eng said the delay in the issuance is due to the developer’s failure to pay the compulsory contribution due to Kuala Lumpur City Hall (DBKL) and its accumulated interests. . Lim said, he has highlighted the issue to DBKL in February and asked the authority to speed up the process. Finally, the CF was issued on July 17. . He added that he felt that it is not fair for DBKL to make the houseowners wait when the defaulter are the developers. Perhaps, DBKL could issue the CF first and take legal action againts the developer instead. . Prima Tiara 1 Joint Management Body chairman Daniel Chong Tiam Kwai said he was relieved that the wait is finally over. It is not right for the authority to make the purchasers wait for something that is not their fault, he stressed, and hopes that DBKL will review their procedures to be fair to all, as there may be others caught in similar situation and are helplessly waiting for the CF.

19. Demand for houses and real estate in Klang Valley continues despite high prices (The Star, 21- August-2012) Descriptions . The interest in real estate in and around the Klang Valley is expected to continue from foreign and local buyers despite the high land prices. Indications . According to Tang Chee Meng, the operating officer of Henry Butcher Marketing Sdn Bhd, the company received lots of enquiries from China and local developers seeking out land for development. . Tang said, the demand for land for development continues to be buoyant, adding that the recent sale by tender of a 28,000 sq ft piece of property in Jalan Ampang is a good indication. . The recent tender of Wisma Char Yong and its adjacent plots received many enquires from developers, companies and individuals. Tender of Wisma Char . Wisma Char Yong which is formerly occupied by Citibank, is for sale together with 3 pieces of Yong vacant land and 3 pieces of land currently occupied by pre-war shophouses near the Jalan Ampang – Jalan Munshi Abdullah junction. . Wisma Char Yong is a 16-storey building which sits on a 16,000 sq ft land with a 60-year lease which will expire in October 2071. The building has a net lettable area of 150,000 sq ft. It consists of a 3-level car park and a basement. . The other six plots sit on a 12,000 sq ft freehold land. . The indicative price for the entire entity is between RM40 million and RM50 million. Notes . Tang said land prices in the Wisma Char Yong vicinity are between RM800 and RM1,000 per sq ft. . Although the property is not located in an upmarket part of town, Tang added that the development of Cap Square had given the place a lift. . That part of Jalan Ampang used to be Kuala Lumpur's banking district. As the city grew, attention moved to the other end of Jalan Ampang.

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20. PROPERTY NEWS: i-Residence @ i-City sold in three months (New Straits Times, 24-August-2012) PROJECT NAME i-Residence @ i-City Location i-City Shah Alam Developer i-Berhad Type Serviced residences Block / unit . Total: 366 units . West Wing: 173 units of service apartments . East Wing: - 116 units of service apartments - 20 units of exclusive duplex and triplex villas with 3+1 or 4+1 rooms respectively and with direct access from i-Berhad Director Monica Ong next to a model of i- basement car park via a private lift to each level. Residence - 57 tower units Gross Development Value RM5 billion (whole i-City integrated development) (GDV) Take-up rate . West Wing: Sold out within 3 months . East Wing: N/A Built-up area West Wing: . Service apartments: 1,140 sq ft –1,361 sq ft . Duplex villas: From 2,400 sq ft . Triplex villas: From 3,700 sq ft . Tower units: 715 sq ft – 754 sq ft Notes . i-Residence @ i-City features a 50-metre infinity swimming pool and a double volume grande drop-off lobby. . i-Residence is the tallest iconic tower on the highest point within the vicinity with all homes whether West Wing or East Wing at ‘the highest point of high living’, the fusion of eco- modern landscapes with lifestyle recreational facilities. . i-Residence @i-City sets a new benchmark for Shah Alam from the design, amenities as well as infrastructure perspective. . Designed by Architects 61, a -based award-winning firm, i-Residence rivals any luxury urban homes within KL city centre. . World-renowned urban-planning firm, Jerde Partnership, is the Master Planner of i-City. California-based Jerde is well known for the success of Roppongi Hills in Tokyo, amongst others. . Real estate experts have confirmed that property prices in Shah Alam have climbed steadily over the last five years. The contributory factors include highway accessibility, spillover effects from the rise of property prices in Subang Jaya, Glenmarie, Bukit Jelutong and Kota Kemuning, and more industry players emerging into the area, including I-Berhad.

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21. Residents fearful of another landslip (The Star, 27-August-2012) . The tattered tarpaulin sheets exposing soil erosion on the hills of Persiaran Endah, Kuala Lumpur, is causing fear among residents. . The sheets which were put up after a landslip in early March to cover the exposed soil and prevent further damage is not serving its purpose. . The trees perched on the edge of the hill are also unstable and look like they could come crashing down at any time. . Impian Diatas condominium residents, directly affected by the landslip and whose units are located along its perimeter, are worried everytime it rains.

Dangerous: Tattered tarpaulin sheets exposing the bare soil is an accident waiting to happen. Trees are also seen perched up the slope.

22. A home with a heart (MetroBiz, 28-August-2012) PROJECT NAME The Royal Regent Location Off Jalan Kuching, Kuala Lumpur Developer Mayland Group of Companies Gross Development Value RM432 million (GDV) Type Low density condominium development Level / block / unit . The development comprises 4 blocks of 35-storey condominium development with a total of 654 units. . The 4 blocks are named Hampton, Hamilton, Winchester and Westminster Tenure Freehold Launching date N/A Completion date July 2013 Take-up rate 70% Built-up area 860 sq ft – 3,300 sq ft Developer’s selling price RM540,000 – RM1 million (from RM450 per sq ft) The Royal Regent’s model Facilities . Three-tier security system: 24-hour closed-circuit television (CCTV) monitoring. Favourable factors . Low density development with only 4 units in each floor making each unit is a corner unit. . Located 3km from the Kuala Lumpur City Centre. . Easily accessible via major highways. . Will soon have a direct link to Jalan Kuching with a new 100ft access road. . Developed by reputable developer. Notes . Other value-added benefits for the development include Developer Interest Bearing Scheme, free sales and purchase agreement and free legal fees. . Mayland Group of Companies is established by Tan Sri David Chiu in 1995.

. This developer has built over 20,000 houses and various commercial prime developments in Malaysia.

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RESIDENTIAL PROPERTY IN SOUTHERN PENINSULAR

23. SP Setia launches Sky Oasis Residences with RM180 million GDV (The Edge Property, 08-August- 2012) PROJECT NAME Sky Oasis Residences Location Setia Indah Housing Estate, Johor Baru Developer SP Setia Bhd Type / units A 28-storey condominium with 434 units. Gross development Value RM180 million (GDV) Built-up area 758 sq ft – 1,003 sq ft Developer’s selling price From RM300,000 Facilities . Infinity swimming pool . Sky terraced An artist’s impression of Sky Oasis Residences . Gymnasium Favourable factors . Enjoy the panoramic view of 5.6 hectares (14 acres) lake and a golf course view. . Surrounded by various facilities such as a hypermarket, a private tertiary learning institution, a petrol kiosk and a bank within proximity to the Economic Corridor. . Located 20 minutes away from the International Airport and the Customs Immigration and Quarantine Complex at Sultan Iskandar building.

24. Homes with a bold design (The Sun, 27-August-2012) PROJECT NAME Aria Park @ Citra Hill Location Nilai, Negeri Sembilan Developer Seri Pajam Development Sdn Bhd Type Single storey link house Special features . Additional 13 feet of ceiling room . Full height wall tiles . Plaster ceilings . Underground cabling Facilities Gated and guarded

An artist’s impression of the double storey linked An artist’s impression of the single storey linked houses in Aria Park (Type A) houses in Aria Park (Type B)

Our philosophy is simple: A unique combination of People, Intellectual Property, Relationships, Services and Commitment 12 Issue 08: 1- 31 August 2012

COMMERCIAL PROPERTY IN KLANG VALLEY

25. Kuala Lumpur offices moving to periphery (The Sun, 03-August-2012) . Based on data recently released by the Ministry of Finance’s National Property Information Centre (NAPIC), increases in office rentals have been observed in the outlying parts of Kuala Lumpur. . Average rentals in these areas have increased from the beginning of 2009 to the end of 2011 by 13% to 18%. . Over the last three years, average office rents within the city centre which includes Midvalley and KL Sentral (excluding KLCC, the Golden Triangle and Masjid Jamek areas) rose from RM2.92 per sq ft per month to RM3.46 per sq ft per month. . Meanwhile, in the suburban area includes Bangsar, Bangsar South, Damansara Heights, Mont’ Kiara and Taman Tun Dr Ismail, average rent rose from RM 3.10 to RM3.51 per sq ft per month. New commercial building in . In contrast, NAPIC’s Purpose-built Office Rent Index Wilayah Bangsar South include The Persekutuan Kuala Lumpur report demonstrated that average rent Horizon Phase 2 in the KLCC-Golden Triangle area stayed consistent over the last three years, having increased approximately 1% from RM4.60 to RM4.66 per sq ft per month. . KLCC rentals nevertheless remained the highest among all KL areas with the highest recorded office rental of RM11.50 per sq ft per month. . The “CBD” area, which was delineated as the older portion of Kuala Lumpur centred around Masjid Jamek, in fact dropped in average rentals from RM3.46 to RM3.27 per sq ft per month. . NAPIC director Dr Zailan Mohd Isa said that the best explanation for this is that some offices are relocating themselves outside the city centre.

26. Suria KLCC to be extended (New Straits Times, 24-August-2012) . The Suria KLCC will have its mall extended with an interconnected four-storey retail building by 2017. . The extension will be built between Suria KLCC and the Assyakirin mosque on Lot 185 that faces the KLCC park. . The upcoming retail outlet will be part of a mixed commercial development that will also include a hotel and office units. . The construction works are already under way. . The retail area will take up 10 per cent of the space in the extension. Altogether 3,500 new parking bays will also be built. The extension at Suria KLCC will take . The new development is part of the KLCC Holdings Sdn Bhd's place at the fenced up area (right). master plan for the iconic mall. Suria KLCC chief executive officer Andrew Brien said the existing cinema will be relocated to the new retail building once it is ready. . Some 80 new retail tenants will be housed in the new building. . Over 41 million customers visit the mall yearly. . Suria KLCC has 384 tenants with 75% of the businesses owned and operated by local tenants.

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27. WCT pays RM180 million for MBSB land and shopping mall (The Edge Property, 24-August-2012) Title . WCT Bhd is buying a land in Johor Baru for RM180 million cash, in a deal that potentially gives it recurring income. . The deal nets the seller, Malaysia Building Society Bhd (MBSB), a one-time profit of about RM55 million. Location . The land is located at Jalan Skudai, Johor which is the main road linking the North-South Expressway to Johor Baru city centre. Property description . The property is a 5-hectare commercial land with a 4-storey vacant retail podium and a 2-level car park. . WCT intends to develop the land into a mixed development project. Notes . The price WCT is paying MBSB’s wholly owned Idaman Usahamas Sdn Bhd, is 1.45 times the property’s net book value of RM124.55 million as at end-December 2011 and 1.13 times the RM160 million value ascribed by valuer Messrs Jordan Lee & Jaafar on Feb 15 this year. . WCT’s winning bid was more than double the only other bid of RM89 million received for the property, according to MBSB’s statement to Bursa Malaysia. MBSB said the disposal is in line with its objective to sell non-income generating assets and other previously acquired foreclosed properties.

INDUSTRIAL PROPERTY IN SOUTHERN PENINSULAR

28. DRB-Hicom to spend over RM1 billion to develop Proton City (The Sun, 09-August-2012) PROJECT NAME Proton City Location Tanjung Malim, Perak Developer DRB-Hicom Bhd Type / units A vibrant automotive town and a Proton car manufacturing hub Development area 1,618 hectares Development stage 30% Notes . According to Perak Menteri Besar Datuk Seri Dr Zambry Abdul Kadir, DRB-Hihom Bhd will expedite the development of Proton City by injecting over RM1 billion in the next 5 years. . Dr Zamry said, Proton City, where Proton cars are being assembled now, was developed in 1996. . He added, various infrastructures will be provided in Proton City including an access road to Proton City from the North-South Expressway to enable Proton cars to be brought out of Proton City. . A commercial centre and a school will also be built in the area, Dr Zamry added.

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Our philosophy is simple: A unique combination of People, Intellectual Property, Relationships, Services and Commitment 14 Issue 08: 1- 31 August 2012

29. Demand for industrial properties on the rise in Iskandar malaysia (The Star, 27-August-2012) . Demand for industrial properties in Johor is likely to remain positive based on the state's position as one of the top investment destinations in the country. . According to Iskandar Regional Development Authority (IRDA) chief executive officer Datuk Ismail Ibrahim, the current situation would create demand for industrial properties especially in Iskandar Malaysia. . Ismail added, property developers should venture into industrial park projects to cater for the demand apart from the residential properties. . He also said that Johor was still strong in the Demand for industrial properties on the manufacturing sector and remained one of the top three rise in Iskandar Malaysia destinations for foreign direct investments (FDI) in Malaysia. . Statistics from the Malaysian Industrial Development Authority showed that it had approved 929 manufacturing-related activities for Johor from 2007 until April this year with RM41.48 billion in investment. . Of the figure, RM14.99 billion (14.4%) came from the domestic investors and RM26.49 billion (15.3%) from foreign investors. . The manufacturing sector was the top recipient of the cumulative committed investments in Iskandar Malaysia from 2006 until June 30. . It received RM32.71 billion contributing 34% out of Iskandar Malaysia's total cumulative committed investments of RM95.45 billion. . Johor's proximity to Singapore was an added advantage as many of the small and medium enterprises (SMEs) and multinational corporations (MNCs) were looking elsewhere to relocate their operations. . Logically, Johor Baru is the best choice for many of them as they could have the best of both worlds in two countries, Ismail said. . He also said the new industrial parks within Iskandar Malaysia such as Senai Hi-Tech Park, Setia Business Park, , IOI Kempas Utama and Southern Industrial Logistics and Clusters@Nusajaya are doing well. . Ismail added, to-date Singapore was the largest foreign investor in Iskandar Malaysia with total cumulative investments of RM4.56 billion as at Dec 2011.

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Our philosophy is simple: A unique combination of People, Intellectual Property, Relationships, Services and Commitment 15 Issue 08: 1- 31 August 2012

HOTEL

30. Puteri Harbour park eyes 500,000 visitors in first year (The Sun, 01-August-2012) Descriptions . According to the Theme Attractions and Resorts Sdn Bhd (TAR), the RM350 million Puteri Harbour Family Theme Park in Nusajaya, Johor, which is slated to open in November is expected to draw half a million visitors in the first year of operation. . TAR, the leisure and tourism arm of Bhd, expects locals to make up 55% of the visitors and the rest are foreigners mainly Singaporeans. Puteri Harbour park . Puteri Harbour Park is a 4-level building spanning over 80,000 sq ft and expected to create about 200 jobs. . The theme park features: - Lat’s Place, the first animated themed restaurant based on the famed Kampung Boy cartoon - Sanrio Hello Kitty Town, the first outside Japan - The little Big Club which offers a series of rides and activities which follow the HIT Entertainment characters like Bob the Builder, Barney and Friends, Angelina Ballerina, Pingu and Thomas and Friends. Notes . TAR’s CEO, Tunku Datuk Ahmad Burhanuddin said that the total investment for the indoor theme park has reached RM115 million and the company hopes to get a double-digit return on investment in the first year, similar to other investments that TAR embarked on such as KidZania Kuala Lumpur, KidZania Singapore, Ocean Quest and Water World at Desaru Coast. . Tunku Ahmad added, TAR is working with partners such as airlines, travel agents and the Tourism Ministry to market the theme park as part of the country’s attractions.

31. One World Hotel wins Asia-Pacific hotels awards (The Edge Property , 26-August-2012) . One World Hotel (One World) Petaling Jaya has been voted the Best Convention Hotel in Malaysia and Asia-Pacific in the 2012 Asia-Pacific Hotel Awards. . In a statement on Tuesday, One World said the Awards recognised the highest levels of hotel construction and design, architecture, interior design and marketing. . One World is the first hotel in Malaysia to earn both 5-star awards and now competes against equivalent award winners in Europe, Africa, the Americas and Arabia in the award function.

32. Malaysia gets vote as a top Muslim tourist spot (TheStar , 27-August-2012) . The Muslim tourist sector is booming and Malaysia has been hailed in an independent study as a top destination for the multi-billion dollar industry. . Based on the number of trips, the top destinations for Muslim tourists are Malaysia, Turkey and UAE. . The Global Muslim Lifestyle Travel Market: Landscape & Consumer Needs Study survey conducted by United States-based marketing research firm Dinar Standard stated that the next six markets are Singapore, Russia, China, France, Thailand and Italy. . It estimated that the Muslim tourism market was worth US$126.1 billion / RM390 billion in 2011, or 12.3% of the world's outbound tourism expenditure, surpassing Germany as the largest spending tourist market and almost twice that of China's tourist spending in 2011. . In the report, Malaysia was highlighted for catering to Muslim tourists' needs. . 67% of the survey respondents, having ”halal”’ food options marked as the most important factor in choosing a travel destination. . The report also stated that, Muslim tourists may very well be the largest untapped niche market of the tourism industry.

Our philosophy is simple: A unique combination of People, Intellectual Property, Relationships, Services and Commitment 16 Issue 08: 1- 31 August 2012

REITs

33. Asia-Pacific REITs still performing well (The Sun, 01-August-2012) . According to a senior executive at AmInvestment Bank Group, the Malaysian real estate investment trusts (REITs) are still performing well despite a reversal in capital flows from Asia to the US and the eurozone, thanks to Asia's demographics and increasing demand for retail and commercial space. . Andrew Wong, the AmInvestment Bank Bhd's Funds Management Division (FMD) chief investment officer of equities said that the Asia-Pacific REITs have outperformed global REITs with funds like AmAsia Pacific REIT aiming for an average 6% dividend per year. . Wong added that the REITs as an asset class for the stocks we have, have given about 15-16% yield to date and they far exceed the AmInvestment Bank's benchmark of about 8-9%. . However, Wong advised investors to avoid office REITs for the time being due to the oversupply of office space in Malaysia which have kept rental rates stagnant for the past two to three years. . He added that the Group are comfortable with retail (REITs) and are neutral on office (REITs). Logistics (services) would always be needed, especially in this age of Internet but need to be mindful of liquidity of the stocks.

34. Sunway REIT optimistic (Business Times, 09-August-2012) . Sunway REIT Management Sdn Bhd expects to sustain the distributable income for financial year ending June 2013 despite a challenging environment due to the loss of income from the temporary closure of Sunway Putra Mall. . REIT, or real estate investment trust, is like a stock of which investors put their money in a certain property and gain returns from the property such as rental income. . Sunway REIT chief executive officer Datuk Jeffrey Ng said the closure of Sunway Putra Mall due to major refurbishment will be cushioned by healthy growth Sunway REIT’s CEO Datuk Jeffery Ng said net from its retail and hotel assets as well as interest property income for Q4 rose 16.7pc year-on-year to RM75.9m on stronger asset contribution savings from the capital management programme. . Ng said, he is happy to see efforts on capital management programme coming into fruition, which are expected to result in substantial interest savings in the coming years. . Ng unveils Sunway REIT's net property income for the fourth quarter ended June 30 2012, which rose 16.7% year-on-year to RM75.9 million on stronger assets (retail and hotel) contribution. . The retail segment posted a growth of 14.3% for the quarter under review compared with the previous corresponding period, mainly contributed by Sunway Putra Mall and Sunway Pyramid Shopping Mall. . The hotel segment grew 35.4% year-on-year in the fourth quarter, mainly due to Sunway Putra Hotel and Sunway Resort Hotel & Spa. . He added that in maintaining Sunway Pyramid Shopping Mall's position as Malaysia's most popular mall, the asset manager will continue to introduce new attractions, higher standards of customer service and aggressive marketing promotions.

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35. REITs demand resilient (The Star, 22-August-2012) . Demand for real estate investment trusts (REITs) will remain resilient in the short term as investors seek shelter in defensive stocks in the current market volatility. . There could be some interest, especially in retail REITs, as IGB Corp Bhd lists its mall properties under IGB REIT sometime in mid-September. . REITs are in favour now as they are considered a safe haven investment. In the next three months, because of all the uncertainties in Europe, the United States and China, people will still go into it,” said the head of research of a local bank-backed research house. . However, he added that when market conditions improved, people would shift from REITs into riskier assets. . He said, whenever conditions improve, affordability improves as well. Hence, instead of investing in defensive stocks like REITs, people would invest in the property's stock itself. . IGB REIT, which recently released its prospectus exposure to the Securities Commission, expects to raise RM837.5 million from the initial public offering (IPO) on Bursa Malaysia's Main Market. . It will be the fifth mall REIT to be listed, adding to the list that includes Pavilion REIT, Capitamalls Malaysia Trust (CMMT REIT), Sunway REIT, and Hektar REIT. Based on its retail price of RM1.25 per unit, IGB REIT will have the highest total market capitalisation of the mall REITS at RM4.25 billion. . The analyst said the main reason to invest in REITs was for its dividends.

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Our philosophy is simple: A unique combination of People, Intellectual Property, Relationships, Services and Commitment 18 Issue 08: 1- 31 August 2012

INFRASTRUCTURE & AMENITIES

36. East Coast Rail project to be implemented in stages (The Sun, 01-August-2012) . According to East Coast Economic Region Development Council (ECERDC), the feasibility study on the East Coast Rail Route (ECRR) from Tumpat in Kelantan to Kuala Lumpur has been completed and will be implemented in stages, starting with Phase 1 covering 109 km from Kertih to Kuantan. . Prime Minister Datuk Seri Najib Razak, said that the ECRR project will have a significant impact in terms of improving East Coast Economic Region's (ECER) connectivity with the West Coast of Peninsular Malaysia and expediting the economic growth within the region. . Prime Minister added, the proposed rail system for the East Coast will provide a major boost for investors as businesses will be able to reduce their costs significantly by using this cost-effective and efficient mode of transport which is also more environment-friendly. . From 2007 to end-June 2012, the ECER attracted over RM32.7 billion worth of investments, of which RM12 billion were recorded in the first half 2012. Of the total, some RM21.9 billion have been received, creating 30,000 jobs and contributing RM7 billion in gross national income.

37. MRT project moves into active construction phase (The Star, 02-August-2012) . Mass Rapid Transit Corp (MRT Corp) has announced that the country’s biggest infrastructure project, the Sungai Buloh-Kajang Mass Rapid Transit Line is on schedule. . The MRT Corp director of strategic communications and public relations, Amir Mahmood Razak said that the project has moved from preparatory work to active construction phase. . Amir said, since finalisation of the Sungai Buloh-Kajang alignment in July 2011, the planning, design and preparatory works for construction have been in full swing. . He added that so far 33 packages worth RM15.5 billion have been awarded for the Sungai Buloh-Kajang Line 1 package. . The deadline for phase one operations of the Sungai Buloh-Kajang Line 1, which runs from Sungai Buloh to Semantan, is on December 2016.

38. Big plans for Penang Port (The Star, 02-August-2012) . Seaport Terminal Sdn Bhd wants to position Penang Port as a regional port to tap opportunities as far out as India and for that it plans to grow its capacity and invests nearly RM1 billion in capital expenditure over the next five years. . Over 30 years, the plan is to spend a whopping RM4.71 billion in capex and with that kind of investments planned, the country's oldest port would be turned into one of the most efficient, profitable and competitive ports in the northern region. . Seaport Terminal director Datuk Mohd Sidik Shaik Osman said Seaport Terminal had plans to “sweat the assets'' to grow the business so that Penang Port would be profitable. Besides, there is also a plan to restructure Penang Port's debts of RM1.2 billion. . He added, Penang Port is the only port in the (northern) region with modern facilities. It has the competitive advantage and the company’s view is that it should serve the greater hinterland. . As for now, the cargo at Penang Port comes from the northern area of Penang and southern parts of Thailand. It is located at the north of the straits and ideal to be a regional port serving the northern Peninsula, south Thailand, north Sumatra and Myanmar.

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39. Smoother ride soon (The Star, 27-August-2012) . The removal of the Templer roundabout in Petaling Jaya has been welcomed by the residents living in the vicinity. . Residents of Section 3, Old Town Petaling Jaya and Taman Gasing Indah are hoping for a congestion- free road with traffic lights installed at the roundabout. . The project, which costs RM10 million, came about after a proposal was drafted following consultations Reducing congestion: The Jalan Templer Raoundabout, with the residents. A traffic impact assessment is or more popularly known as Jalan Othman roundabout, also due to be completed in September. will make way for traffic lights soon. . For years, residents have been facing massive traffic jams during peak hours every day. Sometimes, the traffic on weekends is unbearable, leaving many frustrated. . Section 3 Rukun Tetangga chairman Shamsuddin Hassan said residents have been asking for the roundabout to be removed for a long time. . Section 3 roads are also used as a shortcut by some impatient drivers, turning the single lanes into double lanes. . Shamsuddin said when the PKNS building near Jalan Penchala was demolished last year, it was reported that a multi-storey building will be constructed in its place and that residents had requested for an alternative road to Old Klang Road. However, there is no news received on this until now. . Taman Gasing Indah Rukun Tetangga chairman Eric Chew said while any move to overcome traffic problems in the area is welcomed, a detailed traffic impact assessment should be carried out. . The Petaling Jaya City Council (MBPJ) should present the findings of the study to affected residents and hold dialogue sessions before making any decision, Shamsuddin added.

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Our philosophy is simple: A unique combination of People, Intellectual Property, Relationships, Services and Commitment 20 Issue 08: 1- 31 August 2012

OVERSEAS

40. London property calling (The Star, 02-August-2012) . Amcorp Properties Bhd is the latest to venture into the London property market. The company announced that it had entered into a joint venture (JV) to acquire a freehold property in London via wholly owned subsidiary Old Burlington Ltd (OBL) with NL (Pollen) Ltd and HPL (Mayfair) Pte Ltd. . The company’s investment portion would amount to a maximum of £23.75 million (RM117.6 million). . OBL, together with NL and HPL, formed a JV company to acquire the property from Standard Life Assurance Ltd for £85 million. . The JV company, Ten Acre (Mayfair) Ltd, plans to redevelop the property for residential use. A further £5 million will be considered for the conversion of the property for that purpose. . The property is located east of Mayfair, which boasts as a prestigious retail and residential area in London. . The property comprises a mid-terraced, Mayfair office building totalling 83,024 sq ft of commercial accommodation over basement, ground and eight upper floor levels. The ground and basement comprised restaurant and gallery tenants with office accommodation on the upper floors. . Ten Acre intends to acquire and manage the property in two stages. The first of which is to secure a high quality residential led scheme. The second stage will see the development, marketing and sale of the completed units at the property. . The building was constructed in the 1930s, and was subsequently refurbished in the 1980s. . In late 2010, Amcorp Properties had acquired a residential property with 10 self-contained apartments in Lexham Gardens, London via its unit Riverich Ltd for £7.3 million. The company said the rental from the property provided a sustainable recurring income. According to the company's website, the rental yield for the property is about 4%.

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