MONTH: JUNE 2012 ISSUE: 06/2012

Property

News

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Issue 06: 1- 31 June 2012

GENERAL ECONOMIC & PROPERTY MARKET

1. M’sian invest in Aussie properties to grow (The Star, 06-June-2012) . Investments from Malaysia in the Australian property market is expected to grow by about 15% this year from RM125mil in 2011. . Property Talk director Steven Cheah said in an interview that for the past two years the investment in Australia had remained flat at about RM125mil per annum. This was due to the stronger Australian dollar. But since March, the Australian currency had weakened slightly and so we are anticipating more property investments in Australia. . Cheah said every year many Malaysians go to study in Australia, thus creating a severe shortage of property for rental. Many parents find that buying property for their children make more economic sense than renting. Once their children completed their education, the property can be rented as rental income or they can sell with good capital income. . According to Cheah, Melbourne was the top destination for Malaysian property investment funds. This is because many Malaysians have relatives who have migrated to Melbourne, where we can find a variety of Malaysian restaurants. . According to the latest research by Australian Property Monitors, of the major capital cities, Melbourne has been the standout performer for house price growth over the last five years, with prices increasing almost 30% in just 15 months. . Cheah added, Perth was the worst performing city, with the median house price unchanged in five years, which is largely a hangover from a resource-fuelled boom in prices in the early 2000.

2. Utusan may venture into property development (The Sun, 08-June-2012) . Utusan Melayu (Malaysia) Bhd, may venture into property development in the future as part of its strategy to unlock the value of its current land bank. Executive chairman Tan Sri Hashim Makaruddin said this would enable the company to earn recurring income in the long-term. . The company which owns 4-hectare of land in Jalan Chan Sow Lin, , has leased the land to the service and manufacturing industries. Tan Sri Hashim added, the land can be developed into commercial buildings such as offices, condominiums and service apartments in the future. . He also said newspaper circulation and advertising would continue to remain significant contributors to the group’s revenue in a 60:40 ratio.

3. Property price to stabilise : Home prices in suburban areas in Klang Valley expected to hold steady in next two years (The Star, 11-June-2012) . Property prices in suburban areas in the Klang Valley may be stable in the next two years, as there would be a lot of supply to cater to the demand. . Low Yat Group executive director Low Su-Ming said she believed that prices will be holding the way they are because there is more supply coming up in the northern and southern corridors, and that developers were already branching out to areas beyond the first tier locations. . There will be no acceleration unless the development is prime but having said that, construction cost and land prices will not come down, she added. . There is a choice for Malaysians. People can own an inner-city dwelling yet live 20 minutes away and have a huge mansion of their dream. She said noting that it was something intense, highly developed cities like Hong Kong and Singapore could not offer.

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4. Bank Negara to keep key rate: Domestic demand still very strong, says Zeti (Business Times, 13- June-2012) . Bank Negara will maintain its key benchmark interest rate at 3% due to robust domestic demand unless the country's export growth is affected sharply by global developments, including the eurozone sovereign debt crisis. . Bank Negara governor, Tan Sri Dr Zeti Akhtar Aziz said that the domestic demand was still very robust; it was the trade that had been affected by the developments in Europe. . She added, the domestic demand comprising consumption is still strong, investments are robust and loan growth is also strong. These are the factors that will be taken into consideration in deciding the overnight policy rate (OPR). . Zeti say consumption was currently growing by 6% to 7% while investments, on the other hand, were growing by more than 10%. . Data released by central bank for the first quarter showed that gross domestic product expanded by 4.7% year-on-year supported mainly by domestic activities. . Exports for the month fell 0.1% to RM57.74bil from RM57.8bil previously, while imports rose 7.4% to RM50.23bil.

5. SP Setia under selling pressure (The Edge Property, 27-June-2012) . SP Setia Bhd president and CEO Tan Sri Liew Kee Sin has for the first time exercised the put option granted to him by Permodalan Nasional Bhd (PNB), a move that sees him reduce his interest in the property development company. . According to filings, Tan Sri Liew on Monday transferred 45.19 million SP Setia shares (2.35% stake) to PNB in exercising the put option extended to him under the management agreement dated Jan 20. The 2.35% block was worth RM178.53 million based on the transacted price of RM3.95 per piece. . The management agreement between Tan Sri Liew and PNB came about after the latter's aborted takeover of SP Setia that started in November last year. . The offer met with resistance from Tan Sri Liew and the management and both parties came to an agreement in January which resulted in some revisions such as, he being included as part of the takeover offer. . Following Tan Sri Liew's exercising the option, he now holds a 5.88% stake in SP Setia while PNB and its unit trust funds under management collectively hold about 73.06%. . When PNB unexpectedly launched its takeover of SP Setia in 2011, questions abound as to whether Tan Sri Liew would remain with the property developer. The initial offer was at RM3.90 per share. . As part of the agreement, he was also granted the put option to sell his shares in SP Setia to PNB at RM3.95 each during the period. . The 53-year-old former banker joined SP Setia as an executive director in 1996 and has been credited for growing SP Setia from a construction company to a major property developer.

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DEVELOPMENT LAND

6. Magna unit in RM100mil land deal : Shah Alam 20-acre acquisition to be paid by RM70mil cash and share issuance (The Star, 06-June-2012) . Magna Prima Bhd unit Magna Ecocity Sdn Bhd has proposed to buy 20 acres from PCM Bina Sdn Bhd, located in Section 15, Shah Alam, for RM100mil via cash and share issuance. . Magna Prima signed a conditional sale and purchase agreement with PCM Bina Sdn Bhd yesterday and stated that the RM100mil payment would be satisfied by RM70mil cash and the balance in the form of 1.11 million issuance of new ordinary shares representing a 30% interest in the enlarged share capital in Magna Ecocity or at approximately RM26.92 per Magna Ecocity share. . The said land was located at the north-west intersection of Federal Highway, Expressway Lingkaran Tengah (ELITE) Highway and Guthrie Corridor Expressway. . Magna Ecocity will be responsible to undertake the overall construction and completion of the proposed development of the property. Currently the property is vacant. . Magna Prima is proposing to develop the land into a mixed residential and commercial project, comprising 180 units of 3-storey shop offices and 1,620 residential apartments. . The gross development value of the proposed development is estimated at RM832.67mil and the total development cost is estimated to be RM624.83mil with an expected gross profit of RM207.84mil. The proposed development is expected to commence in 2013 and estimated to be completed by 2016.

7. KL land price too high? : Freehold land along Jalan Bukit Ceylon selling for RM700 per sq ft (The Star, 11-June-2012) . Three parcels of freehold land located at the intersection of Jalan Bukit Ceylon and Jalan Ceylon, Kuala Lumpur was recently put up for sale with a high reserve price of RM26 million, or about RM700 psf. . A valuer said, a price of RM500-RM550 is more realistic considering its residential use status. . Totalling 36,563 sq ft, the land is situated on a hilly area and prospective developers who may be eyeing the piece of land will need to carry out additional levelling works, which will further add to the costs of development. . He added that the developers who are planning to develop the land should have a 20% margin before carrying out development work. . Another property consultant used the example of a piece of prime freehold land measuring 50,063 sq ft located in nearby Jalan Tengah, just next to Eastern & Oriental group's St Mary's Residences. . This piece of land is being transacted at about RM100mil, which prices it close to RM2,000 psf. However, the land has commercial status which does not require any additional costs for conversion.

8. Dijaya subsidiary to buy land (The Star, 26-June-2012) . Dijaya Corp Bhd’s 80%-owned subsidiary, Aliran Peluang Sdn Bhd, has entered a sales and puchase agreement to buy 11 parcels of land, measuring a total of 2.4 million sq ft (55.07-acre), in Mukim Pulai, Johor, for a total cash consideration of RM105.07 million from the vendor, Chua Joo Cheng @ Chua Su Yin.

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9. GBH intends to develop land in Segambut (The Edge property, 27-June-2012) . Goh Ban Huat Bhd (GBH) plans to venture into property development within the next three to five years. . The sanitaryware trader has 5.92-hectare of prime land located in Jalan Segambut, Kuala Lumpur, on which its manufacturing plant is built. Property prices in areas near Segambut and Mont’ Kiara have escalated. Land cost has increased as well. The factory is sited on expensive land. . According to Thor Poh Seng the GBH director, GBH is doing some "conceptual planning". They analysed that condominiums in Segambut and Mont Kiara are currently over supply. . Thor Poh Seng added, GBH will time their property development plans appropriately when they embark on them. . About two years back, GBH underwent a drastic change in management, after Tan Sri Robert Tan Hua Choon gained control in the group, resulting in the ouster of the Goh family, who founded the sanitaryware manufacturer. . GBH currently relies on clay pipe manufacturing and trading on sanitarywares.

RESIDENTIAL PROPERTY IN KLANG VALLEY

10. 9% rebate for luxury Bukit Jalil condo (The Sun, 1-June-2012) PROJECT NAME KM1 West Location Next to Bukit Jalil Golf Course Developer Berjaya Properties (Subsidiary of Bejaya Land Bhd) Type Luxury Condominium Tenure Freehold Incentives . 9% rebate on the downpayment . 1% payment during the sale and purchase agreement (SPA) . Free Legal fees on Sale and Purchase Agreement Block / Level Two 26-storey blocks No. of units 350 condominium units with 3+1 bedrooms (7 units each floor : 3 of which are stand- alone units while 2 units are corner units) An artist’s impression of KM1 West Built-up area 1,335 sq ft – 1,508 sq ft Developer’s selling price From RM718,880 Completion date 2014 Facilities . 24-hour security with card access system . Indoor games room . CCTV cameras at lift lobbies, gym and . BBQ area guardhouse. . Shop . Two car parks for each units . Gym . Swimming pool . Surau . Tennis court . Laundrette . Multi-purpose hall . Cafeteria . Basketball half court . Reading room . Children’s playground Notes . The opening of Maju Expressway (MEX) has put Bukit Jalil right in the middle of this popular highway that whisks commuters between Putrajaya and Jalan Tun Razak within 30 minutes. . Bukit Jalil even has a Kuala Lumpur address. The area could very well be Southeast KL’s undiscovered gem. . There are abundances of parks in Bukit Jalil from the pretty Taman Komanwel radiating out from

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a small hill, to the 80-acre Taman Bukit Jalil which is managed by DBKL, as well as Bukit Jalil Golf Course which provides a large tranche of greenery for the area. . Located on an elevated site overlooking the golf course which in turn fringed by affluent bungalow lots. . Within walking distance to a new LRT station.

11. I-Bhd launches serviced residences in i-City (The Sun, 1-June-2012) PROJECT NAME i-Residence Location I-City Shah Alam Developer I-Bhd Type Serviced residences Gross Development Value RM225 million (GDV) Block / Level 2 blocks comprise: . 346 units of serviced residences . 20 units of low-density duplex villas Sales rate 65% Notes . According to Chief Executive Officer, Datuk Eu Hong Chew, the first residential component in i-City will be a new benchmark for 's i-City flyover: direct flyover access from capital city from the design, amenities as well federal Highway to i-City as infrastructure perspective. . He added, the residential units in i-City are unique as it is within a MSC Malaysia Cybercentre and thus enjoy many of the infrastructure and services associated with a Cybercentre. . The i-Residence which constitutes 20% of 29-hectare of i-City development is scheduled for completion in 2½ years.

12. Affordable lakeside homes : Lake Residence Puchong offers homes by the water priced from about RM318,000 (The Sun, 8-June-2012) . The Klang Valley has its share of waterside properties , especially having been a ex-tin mining area. Old cement mines and dug out plantation lands, as well as tin mines, have now evolved into lifestyle attractions for upscale bungalows, semi-detached and condominiums in areas such as Bandar Sunway, Puchong, Damansara Perdana and Cyberjaya. . Many of these landed properties are priced well over RM1 million. However, after the 7% bumi discount and RM28,000 rebate, the townhouses in Lake Residence, Puchong are offering affordable prices from RM289,967 for non-lake view unit and from RM317,869 for the lake view unit. Datuk Lim Hock San, the LBS Bina managing director said that it is immpossible to find any area with this sort of prices for properties facing the lake. . The developer (LBS Bina) believes that these townhouses are ideal starter landed homes for young families currently staying in apartments and wanting to upgrade to landed property.

An artist’s impression of Lake Residence in Puchong

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PROJECT NAME Lake Residence Location Puchong Developer LBS Bina Group Bhd Type Town house Tenure Leasehold No. of units Phase 1: 235 unit townhouses (80% sold) Phase 2: 64 unit townhouses (yet to be launched with a slight price increase) Total : 299 unit townhouses Built-up area 1,390 sq ft – 1,421 sq ft Completion date 2014 Maintenance charge RM50 per month Developer’s selling price RM317,967 - RM406,900 each (after 7% bumi discount & before rebate) . Units with lake view : from RM345,867 (after 7% bumi discount & before rebate) . Non-lake view units : from RM317,967 (after 7% bumi discount & before rebate) . LBS Bina offers RM28,000 rebate which cuts prices down to RM289,967 and RM317,867 (average price : RM246 per sq ft) Notes . The estimated monthly capital & interest loan repayments: RM1,511 to RM1,985 (based on 5% p.a interest on 90% loan over 30 years, after Bumiputra discount) . The 22’X80’ plot allows for both ground floor and upper floor units to have a 22’x11’ driveway, which fits two cars each. . 80% of Lake Residence’s 1st phase has been sold.

13. Fajar Baru submits plans for condo projects (Business Times, 13-June-2012) . According to a source, Fajar Baru Builder Group Bhd has submitted plans to the local authorities in Selangor and Kuala Lumpur to build residential condominium units in Puchong and Jalan Ipoh. . Currently Fajar Baru has some RM1 billion worth of ongoing construction jobs at hand. In 2011, the company has brought the land for about RM39.94 million. Fajar Baru also bought 0.9 hectare land in Jalan Ipoh – Sentul area for RM23.6 million. The land is said to be a gold mine as it is the nearest point to the city. Hence, it can easily fetch more than RM500 per sq ft. . The high-rise project in Jalan Ipoh will have a gross development value of about RM280 million.

14. I-Berhad to launch first KL project next year (Business Times, 13-June-2012) PROJECT NAME Grand i-Residence Location Jalan Changkat Kia Peng Kuala Lumpur (nearby to Traders Hotel) Developer Joint venture development between i-Berhad and Sumurwand Sdn Bhd (the land owner) Type 450 Soho units (single office/home office) Gross development value Expected to generate RM500 million Development area 0.43-hectare Launching date Originally slated for launch at the end of 2008 known as The Peak @ KLCC, however the development is postponed due to unforeseen circumstances. Notes . Sumurwang is the majority share holder of i-Berhad, controlled and founded by Tan Sri Lim Kim Hong. . Tan Sri Lim via Sumurwang, has brought the land at KLCC in 1993 for RM280 per sq ft.

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15. Trinity Group to debut Zeva (The Edge Property, 14-June-2012) PROJECT NAME Zeva @ Equine South Location Located at the intersection between Jalan Putra Permai and Persiaran Pinggiran Putra in Bandar Putra Permai, Seri Kembangan. Developer Trinity Group Sdn Bhd Gross development Value RM260 million (GDV) Type Block A & B Service apartment units Block C : Studio units Development land area 3.71 acres Block / Level Block A & B : 15-storey tower Block C : 20-storey tower No. of units Block A : 210 units Block B : 236 units Block C : 320 units Built-up area Block A & B : 881 sq ft – 1,536 sq ft Block C : 455 sq ft – 638 sq ft Developer’s selling price Block A & B : From RM350,000 Block C : From RM220,000 Launching date Block B : Early June 2012 (open to customer who had registered for the project earlier) An artist’s impression of Zeva @ Equine South Block A & C : Yet to be launched Completion date 2015 Selling performance 70% - 80% (expected) Facilities . 50m Olympic-length swimming pool . Cafeteria . 3-tier sky terrace sauna . Barbeque area . Multipurpose hall . Chilcare centre . Launderette . Playground Notes . The development is easily accessible via Damansara – Puchong Highway (LDP), South Klang Valley Expressway (SKVE) as well as the proposed Kinrara – Damansara Expressway (KIDEX) and the Serdang – Kinrara – Putra Highway (SKIP). . Zeva @ Equine South also comprises a retail component consisting of 12 units of 3- to 4- storey boutique retail shops, with built-up areas of 5,703 sq ft to 12,230 sq ft. Prices start from RM2.8 million. . Datuk Neoh Soo Keat, the managing director and founder of Trinity Group said that Trinity Group will retain 3 units of the boutique retail shops and sell the rest. . Trinity Group aims to launch projects with a total GDV of RM640 million by the end of its financial year dated March 31, 2013. The developer plans to launch another serviced apartment project in Subang USJ with a GDV of RM280 million.

16. Nadayu eyes twofold rise in sales (Business Times, 19-June-2012) . Nadayu Properties Bhd aims to increase property sales by twofold to RM400 million this year, led by its latest launch in Bandar Sunway, Selangor. . The developer will be launching Nadayu 28 in August 2012. The project comprises high-rise residences with 10 units of shoplots, worth RM440 million in total. . According to Nadayu chairman Hamidon Abdullah, 50% of the project has been sold before the releasing date. . He added, Nadayu has RM280 million in unbilled sales, which will be recognised throughout this year.

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RESIDENTIAL PROPERTY IN NORTHERN PENINSULAR

17. Penangites go for leasehold projects (The Star, 23-June-2012) PROJECT NAME Darra Location Tanjung Tokong, Developer UDA Land (North) Sdn Bhd Type Condominium Tenure Leasehold Gross development value RM650 million (GDV) Built-up area 1,400 sq ft – 1,800 sq ft Developer’s selling price From RM800,000 Launching date 1Q 2013 Notes . Currently, the layout plan for the condominium units in Darra is at the final stages of approval. . UDA Land chief operating officer Kamarudzaman is showing an artist’ Kamarudzaman Mohd Zain said that with the right pricing, residential properties impression of Darra located in prime locations are still doing well such as the condominium units in Brezza which are fully sold in a year to mainly local buyers. Other developments by Brezza: UDA Land (North) Sdn Bhd . Similar to Darra, Brezza is also located at Tanjung Tokong, Penang. . Brezza comprises 312 condominium units. . Units in Brezza have built-up ranging between 1,250 sq ft and 1,450 sq ft. . Developer prices are from RM350,000 to RM500,000 per unit. . Launched in late 2010, all Brezza units are 100% sold. . The sub-sale market for Brezza units has reached about RM700,000.

Vantage Desiran Tanjung: . Comprising a 4-storey business centre with 120 units shop offices. . The development stage is at 80% completion. . Despite a slowing economy with an anticipated GDV of 4.6% compared to over 5% in 2011, all shop office units in the Vantage Desiran Tanjung are 100% sold. . The price for a standard ground floor unit is around RM1.2 million. . The units on the higher floors have lower prices.

Serambi: . Currently UDA Land is planning to submit the building plan for Serambi project. . Serambi is a RM98 million project sited on a 16-acre land. . The development comprises 3-storey semi-detached, terrace and bungalow units. . The plan for the project has been approved.

Arcaria: . Arcaria have RM22 million gross development value. . It will be launched in early 2013. . The scheme comprises 26 units of 3-storey semi-detached, 3-storey super-linked and bungalows. . Units in Arcaria will be priced at: - From RM725,000 (for terraced houses) - RM900,000 (for semi-detached units) - From 1.4 million (for bungalow units).

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18. SP Setia sees RM500mil revenue from Penang (The Star, 25-June-2012) . SP Setia Bhd is projecting its Penang properties would generate about 15% or about RM500mil of the company's 2012 revenue, expected to be about RM4bil. . SP Setia Property (North) general manager Datuk S. Rajoo said that the developer's key contributing projects in Penang included Setia V Residences, Setia Triangle, Pearl Villas and 11 Brook Residences. Setia V Residence Setia Triangle Pearl Villa & 11 Brook Residences . The biggest contributor to revenue for the . Expected to add about RM120 million . The Pearl Villas bunglows and 11 financial year ending Oct 31, 2012 (FY12). to the company’s 2012 fiscal year. Brook Residences are expected . Expected to generate RM150 million for . Comprises 34 units of 2-, 3- and 4- to contribute about RM150 the company’s 2012 fiscal year. storey shop offices with built-up areas million to the group’s 2012 . Comprising 166 units in 43- and 48-storey of 3,000, 4,500 and 6,000 sq ft. revenue. towers in Kelawei Road. . The units are priced from RM1.95 . About 20% of the project has been sold to million to RM3.6 million. Penangites working overseas, locals and . 50% of the shop offices have been sold foreigners from Medan and China. during the soft launch in April 2012. . The 48-storey block will be the tallest . Setia Triangle will also consist of a 225- residential tower in Penang and is built to unit condominium priced between withstand earthquake vibrations of up to RM575,000 and RM1.2 million. 6.8 on the richter scale. . Units in Setia V Residence are ranging from 2,700 sq ft and priced from RM2.7 million.

A model of Setia V Residences

19. An enclave of 22 homes (The Star, 27-June-2012) . Asia Green Group is offering visitors to the The Star Property Fair 2012 a chance to own their own luxurious homes amidst a Garden of Eden setting through its Hilltop Villas development. . Including financial institutions and investment companies, there are 50 exhibitors who have confirmed their participations in the property fair. . Among the major players are IJM Land, SP Setia Group, Mah Sing Properties, Sunway Bintang, Ivory Properties Group, DNP Land, BSG Property, Ideal Group, Bukit Kiara Properties, Andaman Property, Henry Butcher, KPWG International, Magna Putih, Province Valley and Tambun Indah Land. PROJECT NAME Hilltop Villas Developer Solid Tribute Sdn Bhd (subsidiary of Asia Green Group) Location Batu Feringgi, Penang Development type An exclusive collection of 22 luxurious homes tucked away in Batu Ferringhi, Penang Built-up 4,600 sq ft – 9,500 sq ft Development theme Based on a tropical island setting with a design element rich in solid wood and timber as well as a

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natural Balinese stone facade around the exterior walls, while providing for every modern comfort and convenience. Special features . Open outdoor kitchen and entertainment area build on the concept of a tropical villa. . Garden deck platform with usable grass landscape extending from the residence. Notes . Group managing director Tan Boon Huat said the Hilltop Villas currently offer the largest average land size and a built-up for any hillside development with a sea view. . He added, in order to maximise the usable area, a great deal of effort was placed on creating a flat land space around each residence by using reinforced concrete retaining walls and by building upwards, as high as four levels on many of the units. . Located in a quiet upscale suburban neighbourhood, Hilltop Villas is a short drive from the excellent dining, entertainment, and shopping options, as well as Penang’s best hotels and international schools.

RESIDENTIAL PROPERTY IN SOUTHERN PENINSULAR

20. UEM Land plans Johor resort (The Sun, 1-June-2012) . UEM Land Holdings Bhd has bought nearly RM500 million worth of land to develop a high-end residential resort in Desaru, Johor which expects to rake in RM5.4 billion gross development value from the project. . The company yesterday announced that it had bought 25 parcels of land measuring 271.48 hectares for RM485.3 million. . The proposed development entails residential components, comprising bungalows, semi-detached houses, link houses, townhouses and service apartments/condominiums as well as a beach club. . The development will be surrounded by two 27-hole and 18-hole golf courses. . The project, in collaboration with Desaru Development Holdings One Sdn Bhd, a subsidiary of Desaru Development Corp Sdn Bhd (DDC) is expected to start by 2013 with completion of the final phase within 20 years.

21. JB has land for affordable houses (The Star, 19-June-2012) . According to Johor Real Estate and Housing Developer Association branch chairman Koh Moo Hing, there are still large tracts of land in Johor Baru that have potential to be developed into affordable homes with decent built-up area for the first-time local house buyers. . He added, since the inception of Iskandar Malaysia, land prices in the economic growth corridor had risen steadily between 30% to 40% depending on the locations. He described that the prices of properties in Iskandar are still reasonable and competitive. . Government-backed Iskandar sprawls on a 2.217 sq km in the southern most part of Johor Baru City Centre, Nusajaya, Eastern Gate Development, Western Gate Development and Senai-Kulai. . Koh also said that, developers with land in the sub-urban areas can offer affordable houses to the first-time home buyers as location is no longer an issue to them. . He added, developers in places such as Senai, Kulai, Ulu Tiram, Pasir Gudang and Kota Tinggi are popular with the first-time home buyers as they offer houses priced between RM110,000 and RM220,000. . Johor property market had yet to reach the boiling point like in Penang Island, where prices of properties have soared by more than 25% over the last five years, said Koh.

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COMMERCIAL PROPERTY IN KLANG VALLEY

22. Jaya 33 Cybercentre launches new towers (The Sun, 1-June-2012) . With the launch of two new 22-storey tower blocks to go with three existing office towers and a retail podium, Jaya 33 in Petaling jaya is now known as Jaya 33 Cybercentre. . The new towers are targeted to be completed for occupancy this December. Tower 5 is open for leasing with minimum requirement of 19,000 sq ft. Rental starts from RM4.50 per sq ft. . According to the developer, the building’s MSC-status application is in the final stages of approval.

23. More than just a facelift : Pantai Plaza rebranded as Bangsar Trade Centre to house wholesale mall (The Star, 5-June-2012) . Pantai Plaza which is located along the Federal Highway will be renamed as Bangsar Trade Centre (BTC). It will house a wholesale centre for food and beverage and hospitality industry. The plans to revive the mostly vacant Pantai Plaza are expected to commence in August and to be completed in stages with gross development value of RM850mil. . Malaysia Building Society Bhd (MBSB) signed a RM120mil debt settlement agreement with Twin Pavilion Development Sdn Bhd to revive Pantai Plaza. This agreement will also settle the debts of the plaza’s previous owner, Atlas Corporation Sdn Bhd. . According to the Twin Pavilion Development chairman Tan Sri Ramli Ngah Talib, plans for the plaza included a corporate office tower, convention and exhibition centre, strata office suites and a hotel. . Tan Sri Ramli Ngah Talib estimates a total of 10,000 visitors daily and potentially to increase when the surrounding commercial properties such as KL Eco City come into full occupancy. . Meanwhile, the Twin Pavilion Development chief executive officer Lee Seng Khoon said that they will be refurbishing the plaza as well as some construction work. . He added that the existing podium with a space of 400,000 sq ft will be refurbished to house the wholesale centre where suppliers will be able to connect with buyers. Also, there will be constructing towers, providing an additional 1mil sq ft of floor space.

Close inspection: Tan Sri Ramli Ngah Talib (left)

checking out the BTC model after the signing ceremony

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24. Festival City lights up (Metrobiz, 8-June-2012) PROJECT NAME KL Festival City Location Jalan Genting Kelang, Kuala Lumpur Owner / management Festival City Sdn Bhd [a wholly subsidiary of Parkson Holding Bhd (part of parkson group)] Development type 3-storey shopping mall with a basement car park

Gross Development Value RM250 million (GDV) Gross retail space 1.1 million sq ft Net lettable space Approximately 500,000 sq ft Major tenants . Parkson Department Store . Econsave Supermarket . MBO Cineplex KL Festival City shopping mall Leasing rate More than 98% leased Notes . There are over 2,000 parking bays in KL Festival City and the surrounding areas for customer convenience. . The mall houses over 200 shops with over 40 restaurants and food bars. It services a catchment area with a population of more than 600,000 within a 15-minute drive time.

25. High-end corporate suites for the discerning (The Sun, 8-June-2012) PROJECT NAME Menara Bangkok Bank @ Berjaya Central Park Location Located at the junction of Jalan Sultan Ismail and Jalan Ampang, Kuala Lumpur. Developer Wangsa Tegap Sdn Bhd (a wholly owned subsidiary of Berjaya Corporation Berhad) Tenure Freehold Type A 48-storey tower consists of Grade A corporate suites Development land area 2.7-acre No. of units 207 units (7 units each floor) Built-up area From 775 sq ft Developer’s selling price From RM1.02 million Completion date 1Q 2014 Unique feature . Ensuite executive bathroom with shower incorporated in every unit. . Motion Sensors along toilets, bathrooms, corridors, car parks and other common areas. . The lift in Menara Bangkok is equipped with a Floor Destination Control system (FDCS) to reduce waiting time and energy costs. Favourable factors . With only seven units per floor and flexibility in term of size, business owners can design their suites to meet their business growth plan. . Menara Bangkok has won the 2012-2013 Asia Pacific Property Award in the category of Commercial High Rise Development for Malaysia. . Berjaya Central Park has been awarded BCA Green Mark Gold (Provisional) Certification by the Building and Construction Authority of Singapore.

An artist’s impression of Menara Bangkok Bank

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26. i-City to earn more from properties (The Star, 13-June-2012) . I-Bhd, the developer of i-City, expects to see its property development segment accounting for 50% of its net profit in two to three years. . The leisure business posted 43% to profit margin last year. Since the launch of i-City's “City of Digital Lights,” revenue from the segment has grown from RM2.8mil in 2010 to RM17mil last year. Future Developments in i-City Children’s gym This 10,000 sq ft gym is expected to be opened in August 2012. Water theme park Expected to be opened in November 2012 with total area of 4-acre. City Mall . Development type: A shopping mall comprising a 5-storey podium block, 4 blocks of hotel tower and 3 blocks of serviced residences. . Built-up area: 1 million sq ft . Total land area: 14-acre . Gross Development Value (GDV): between RM600 million to RM700 million Notes . The gross development value for children’s gym and water theme park is RM25 million. . City Mall will be the only other mall to have direct access from the Federal Highway apart from Mid Valley Mall. The RM58 million flyover is currently under construction and expected to be completed in September. The project is undertaken by the Mentri Besar Inc to ease traffic flow to and from the area.

A model of i-City project

27. Eco-friendly workplace (The Sun, 19-June-2012) PROJECT NAME Univ360 Location Serdang South Developer f3capital Group of Companies Type Designer Small Office Flexi-Office (D-SOFO) Project details Univ360 embodies the fusion of green beauty and cutting-edge facilities while combining practical attributes and visionary ideals. The project offers essential facilities that complement modern, urban living such as fiber- optic infrastructure and multi-tired 24-hour security. Note . 60% of the units have been sold prior to the project launch. An artist’s impression of Univ360 . For more info visit www.f3capital.com.my

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28. UDA Holding Awaiting Treasury Decision On Tradewinds’ Participation To Rebuilding BB Plaza (The Edge Property, 26-June-2012) . UDA Holdings Bhd is still awaiting the decision from the Finance Ministry on the application by Tradewinds (M) Bhd to participate in the Bukit Bintang Plaza shopping complex reconstruction. . Ahmad Abu Bakar the Managing Director of UDA Holdings Bhd said UDA Holdings has received the formal application from Tradewinds and other companies are also keen to part take in the project. . The shopping complex, the symbol of Bumiputera business centre in the city’s golden triangle area, is expected to be demolished in early 2013. . He added, MRT Corp has given tenants time until end 2012 to vacate the building. Eviction notice will be issued to the tenants to move out.

COMMERCIAL PROPERTY IN NORTHERN PENINSULAR

29. Ivory in talks to develop commercial companents in Bayan Mutiara (Business Times, 19-June-2012) . According to Murly Manokharan, the Ivory Properties Group Bhd executive director/chief operating officer, Ivory Properties Group Bhd (Ivory) is in talks with few interested parties from local and overseas including Singapore and Japan, to develop commercial components in Bayan Mutiara. The developer is also expecting a deal on the joint venture partner within the next three months. . Ivory is looking for value-add investors specifically for commercial content, hospital and office for the land. . Murly stressed, it is not a direct outright sale, the partnership will be an added value similar to the strategic collaboration between Ivory and Dijaya Corporation Bhd. . He said for investors who are interested to own land in Bayan Mutiara, a joint venture company will be set up for financing and cashflow positioning of the projects. . The entire project of Bayan Mutiara covers a total land size of 41.5-hectare, comprising 27.3-hectare of existing land and 14.2-hectare area to be reclaimed. . The first phase of residential development in Bayan Mutiara is expected to be launched at year-end or first quarter 2013, with a gross development value of between RM700 and RM800 million. . To be developed under a joint venture company, Tropicana Ivory Sdn Bhd, the first phase will comprise affordable homes with 1,500 units measuring 500 sq ft to 600 sq ft. . A planning permission approval to develop a sales gallery in Bayan Mutiara has been obtained. The sales gallery is expected to be ready by year-end 2012.

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HOTEL

30. Daiman hotel under Hilton brand (The Star, 1-June-2012) . A Daiman Development Bhd property in Johor Baru is set to become part of Hilton Hotels & Resorts stable. . Daiman Development clarified that the management agreement signed on May 28 by wholly- owned Daiman Landmark Hotel Sdn Bhd and Hilton of Malaysia LLC is for Hilton to provide development services and to operate a hotel owned by Daiman Landmark Hotel. . The hotel will be run under the “DoubleTree by Hilton” brand. Hilton of Malaysia is an affiliate of Hilton Worldwide Inc.

31. 30-storey green building constructed in 15 days (The Sun, 1-June-2012) . A 30-storey five-star hotel was completed within a record 15 days in the Hunan Province of China last December, by Broad Group, a Chinese construction company which specialises in sustainable architecture. Learn how this was done at the GBI (Green Building Index) International Series 2012 on June 12 to be held at One World Hotel Bandar Utama. . Broad Group’s senior vice president Juliet Jiang will speak on how this building, termed the T30, and housing the Ark Hotel, was built using pre-fabricated modules. The event will also feature an update on GBI Malaysia by the chairman of GBIAP. . The event will be held from 9 am to 1 pm and admission costs RM80 per person.

REITs

32. Starhill REIT buys three Australian hotels for RM1.3b (The Sun, 14-June-2012) . Starhill Real Estate Investment Trust (Starhill REIT) is acquiring the hotel properties and business assets of three Marriott hotels in Australia for A$415 million (RM1.3 billion). . This is the second country that Starhill REIT has ventured into after Japan, with the overseas hotel assests accounting for some RM1.5 billion. In Japan the REIT ownes Hilton Niseko. . In a statement yesterday, Pintar Project Sdn Bhd, the manager of Starhill REIT, said the trust will be acquiring the hotel properties and business assests of Sydney Harbour Marriot Hotel, Brisbane Marriott Hotel and Melbourne Marriot Hotel. . It has entered into agreements through its indirect wholly-owned subsidiaries and trusts to buy the hotels from Commonwealth Managed Investments Ltd. . Pintar Project CEO Tan Sri Dr Francis Yeoh Sock Ping said, the acquisition of this new portfolio of hospitality assets will upon completion, enlarge the trust’s portfolio to approximately RM3 billion from RM1.58 billion currently.

33. Positive outlook for M-REITs (The Star, 26-June-2012) . A two months REITs conference with ‘REIT Reality’ theme, organised by the Asian Strategy and Leadership Institute has been held at Hotel Istana, Kuala Lumpur. . According to speakers at the conference, the outlook for Malaysia's real estate investment trusts (M-REITs) continues to be positive, with plenty of room for further growth.

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. Sunway REIT Management Sdn Bhd chief executive officer Datuk Jeffrey Ng said, M-REITs were considered to be at the infancy stage. . He pointed out that the market capitalisation of M-REITs was expected to rise 30% to around RM20 billion in 2012, from RM15 billion in 2011. . He added, it is due to the expected listing of the IGB REIT in 2012, which may have a market capitalisation of between RM3.5 billion and RM4.5 billion. . A recent AmResearch report stated that, IGB Corp Bhd would benefit handsomely from the listing of its two malls - MidValley Megamall and Gardens Mall via a REIT.

INFRASTRUCTURE & AMENITIES

34. Elements model for Pudu project? (Business Times, 12-June-2012) PROJECT NAME Redevelopment project of Pudu Jail Developer UDA Holdings (UDA) Type Integrated transportation hub (similar to the Elements of Hong kong) Gross development Expected to generate more than RM8 billion value Development stage Preparation of development proposal . UDA is hiring consultants to study proposals from the Ministry of Finance (MOF) and Everbright International Construction Engineering Corp (EICEC), a China government- linked company. . UDA is in favour of EICEC’s proposal, which moves along the lines of Elements, a large shopping mall, located directly above the Kowloon MRT station, Hong Kong. Note . According to UDA Chairman Datuk Nur Jazlan Mohamed, UDA’s survival and the fate of its 1,400 employees depended on the success of the Pudu Jail redevelopment project, since UDA has RM900 million debt. Currently, UDA’s assets are worth more than RM2 billion. . The Pudu redevelopment project is part of the New Economic Model to turn Klang Valley into the grater Kuala Lumpur economic district and Malaysia into a high income nation by 2020.

The Element shopping mall in Hong Kong which boasts of an ice rink and a 1,600-seat cinema is located directly on top of the Knowloon MRT station.

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35. Upgrades for Johor Port (The Star, 18-June-2012) . Johor Port has embarked on a five-year business and port expansion plan involving significant redevelopment and restructuring of infrastructure as well as major upgrading of its equipment and facilities. . Chairman Datuk Mohd Sidik Shaik Osman said, the objective of the plan was to be able to serve its customers in a more efficient and cost-effective manner and to remain as a competitive port in the region. . Datuk Mohd Sidik added that under the expansion plan, the port will be modernised in phases and in 2012, a total of RM100 million will be spent to modenise the port. . Since its inception in 1977, Johor Port has become one of the most successful multi-purpose port facilities in the country. . It is also one of the only 35 ports in the world which handles London Metal Exchange's (LME) non-ferrous metals. . The industries in Pasir Gudang are growing to the extent that they have now expanded to the Tanjung Langsat industrial area. . In order to continue being the preferred port for LME cargo in the region, Datuk Mohd Sidik said it will undertake space optimisation initiatives by reconfiguring some parts of the port's layout to create more space. . He added, the port will continue to play a key role in facilitating the needs of the oil and gas sector.

36. Big plans for Lumut port (The Star, 28-June-2012) . Lumut port operator Integrax Bhd wishes to resume talks with Brazilian iron ore giant Vale International SA (Vale) even though their agreement lapsed two years ago. . According to Integrax Bhd’s newly-appointed executive director Azman Shah Mohd Yusof, the company is looking to reopen negotiations with Vale through the state government. . Integrax Bhd’s deputy Chairman Amin Halim Rasip said, Vale's objectives co-align with Integrax Bhd and the bigger picture of the growth of Lumut. It is a joint aspiration. There is no reason why both parties can't sit down and talk, he added. . According to Chairman Tan Sri Tajol Rosli Ghazali, Integrax Bhd intends to help drive Lumut as its new economic capital after the Kinta Valley. . Integrax had in December 2009 signed a conditional agreement with Vale to provide transhipment services for the latter's pellet plant project near the Lekir Bulk Terminal in Manjung, Perak. . Under the agreement, Integrax would be required to upgrade its existing facilities by investing in jetty extension, stockyard and export facilities and equipment. . However, it said in October 2010 the discussions with Vale had not resulted in any further agreements, and was terminated. The state government has since given Vale the nod to build its own jetty. . Integrax had previously said it aimed to transform Lumut into the Rotterdam of Malaysia. Often called the “Gateway to Europe”, Rotterdam in the Netherlands is the largest port in Europe and one of the biggest and busiest ports in the world. . Amin Halim Rasip said that, Lumut have the capability to be on the same standing as Rotterdam. . Explaining its difference from Pengerang, he added that the latter would primarily serve the oil and gas industry while Lumut's strength is in dry bulk such as iron ore, limestone, coal, fertiliser and palm oil. . Lumut is on the Straits of Malacca. We are living in a sea of palm oil in the Peninsula and Sumatra, and our approach is to tap both of them, Azman said.

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OVERSEAS

37. Great Mall taking shape (The Star, 05-June-2012) PROJECT NAME Great Mall of China Developer Berjaya Land Berhad (subsidiary of Berjaya Corporation) Descriptions . Great Mall of China is the future world’s largest all-in-one shopping mall inspired by both the West Edmonton Mall and Mall of America. . The mall is strategically located within the radius of Beijing, Tianjin and other Hebei cities, therefore the expected catchment will be 100 million people. . Main highlight of the mall is the coaster rides, which includes the SkyLoop and Pretzel Coaster that will scale up to 60m or approximately 17 storeys. Built-up area 1.84 million sq ft (entire project) Completion date March 2017 Phase 1 . Phase 1 of the RM2.35 billion development comprises a retail mall, an indoor theme park, a family theme park which will be completed in March 2013 and scheduled to open in October. In total, Phase 1 covers 796,529 sq m area. . There will be an extension of a cinema and pedestrian street in the first phase. Phase 2 & 3 . Phase 2 & 3 will include a convention centre that can accommodate 10,000 people, a 2,000-seat capacity theatre, another retail building, office blocks, an aquarium, sport centre, hotel and service apartments. Notes . According to Tan Sri Vincent Tan, the reputation of being the largest mall will attract people from all over the world to the mall. . A mall with this isze can only be built in China where there is a huge population. Otherwise, it will not be economically viable to construct something of this magnitude, Tan added. . Currently, the largest mall is in the South China Mall in Dongguan.

An artist impression of the Great Mall of China

38. China property curbs seen as policy indicator (The Sun, 08-June-2012) . Any move by Beijing to relax restrictions on home purchases for investment is a sign that the government is worried about the economy heading for a sudden dive and has resorted to desperate measures to avoid a stimulus programme. . China clamped down on speculative real estate transactions after its 4 trillion yuan (RM2 trillion) stimulus of 2009-2010 triggered a property frenzy and Premier Wen Jiabao has personally pledged to keep curbs in place until prices return to a reasonable level. . Beijing is so determined to avoid a repeat of the previous upheaval that it is prepared to keep restrictions and sacrifice economic growth, as long as job creation remains steady.

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. That means lifting property restriction will likely be deployed as a last ditch measure to keep the economy on track without introducing stimulus package, which last time led to speculative bubbles, ballooning local government debt and souring loans for banks. . Beijing has confined itself to a gentle easing of monetary and fiscal policies since autum of 2011 when it began “fine-tuning” economic settings to support growth. . Even unexpected weakness in economic data published in mid-May, setting the world’s second-largest economy on course for its slowerst year of expansion since 1999, has led to no more than a quickening of planned infrastructure investment and small-scale incentives for consumer spending in key areas. . Dong Tao, a Credit Suisse economist said, while the tune has sounded more engaged, the property market in China have not had the impression of a panic like in 2009.

39. City&Country: Myanmar opens for business (The Edge Property, 14-June-2012) . Despite beeing isolated for many years, the Myanmar Government did not stop the teaching of English but allowed private schools and colleges to operate. . Nowadays people can see a lot of Burmese communicating in English language. Even singboards in the capital city of Yangon are in English and local languages. . Myanmar and Yangon are starting to open up, and there seems to be greater opportunity for the country to accelerate its development and improve its economy as it already has some fundamentals of international communication. . The Yangon authority has contacted Malaysia Property Inc (MPI) for information on the master-planned cities. They wanted to expose the city to the development strategy that Malaysia has employed over the last 30 years to become a developed economy. They are also particularly impressed with the Petronas KLCC development. . Singapore, China, Vietnam and Japan have been major participants in Myanmar’s economic development over the past 15 years. Just like in Ho Chi Minh City, Vietnam, there are visible presence of Singapore government-linked companies (GLCs), such as Keppel Land and CapitaLand in Myanmar.

40. Singapore May inflation slows to 5% (Business Times, 26-June-2012) . Singapore's inflation slowed to 5% in May from a year earlier and authorities cited moderating price pressures from wages and other business costs, indicating the central bank might have room to ease monetary policy slightly in October. . The May inflation was slightly below the median estimate of 5.1% of 11 economists polled by Reuters and a sharp improvement over April's 5.4%, the highest rate in 2012. . Singapore's inflation has, however, remained high compared with other Asian countries due to a shortage of homes and measures to cap the number of motor vehicles on the roads, which sent car prices spiralling higher.

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