Mont Kiara, , Mont’ Kiara, Kuala Lumpur, Malaysia

1) A Synopsis

2) Investment Summary

3) Malaysia

4) Mont’ Kiara

2 A Synopsis

Malaysia

With a population of 24m (half of which are under 27 yrs of age), with urbanisation occurring at an alarming rate of 10% per annum, and with supply estimated at 44% of current demand, the Malaysia property market is an exciting place to be right now.

Add to this a ten-year high for affordability, low interest rates, mortgage lenders providing longer repayment periods and with wages increasing, indicators for profitable investment abound. Economically Malaysia is also robust, with unemployment now below 4%, GDP has been over 5.5% for past 3 years and consumer confidence sustained near 10%.

Mont’ Kiara, Kuala Lumpur

10 minutes from the CBD, Mont’ Kiara combines the most highly desirable and affluent international community in Kuala Lumpur with the prime region for international business development. A crucial location for communication, with quick access to central business regions, Mont’ Kiara is also the most popular with Japanese, Korean, American and British business people. Kuala Lumpur is home to the world’s longest fully automated light rail transit system.

With an affluent business population, the need for high quality apartments in this area is high and so demand for stylish and quality residences is at its peak. One of the most prestigious developers in the regions, Ireka Land Sdn Bhd are providing a number of developments to the community with a host of luxury facilities to enhance the living experience. Provided in a fully furnished and prime rental location, these developments will provide luxury lifestyle to owner-occupiers and command premium income for all those buying purely for investment.

3 Investment Summary

• Freehold ownership to foreign investors.

• Local yields achievable range from 7% - 10%.

• Ireka were winners of “Malaysia Property Awards 2005 – Hotel Category”.

• The apartments provide ultimate luxurious living, 5-star views and recreational facilities.

• Mont’ Kiara is one of the most highly desirable regions of Kuala Lumpur, with take-up rates near 100%.

• Mont’ Kiara is just 10 minutes from the CBD and connected by an advanced infrastructure network.

• Major local & international corporations are decentralising to new suburb business districts such as Mont’ Kiara, which has an increasingly affluent population.

• With a confident banking sector and booming economy, affordability is at a ten-year high (only 18% of monthly income now required to service a mortgage).

• Urbanisation rates are very high, with the urban community set to increase by 4.5m over next 15 years.

• GDP growth was 5.9% (est) for 2006.

• Over half the Malaysian population under 27 years of age.

• Capital Gains Tax on property was repealed in April 2007.

4 Malaysia

An overview of the investment indicators for Malaysia

– General

– Economy

– Confident banking sector

– Young, Educated & Urbanizing workforce

– Tourism

5 General

Malaysia’s economy is now expanding very quickly, taking advantage of improved export relationships with China coupled with very high levels of foreign direct investment from the US, China and Japan. As export opportunities rapidly increase for Malaysian businesses, particularly to China, and whilst the country benefits from healthy foreign exchange reserves, low inflation and a small external debt, both the internal banking confidence and international investor’s confidence in the stability and sustainability of this growth has never been higher. These growth rates are indicated by high GDP growth and FDI figures.

Sustainability of this growth is an important consideration, and Malaysia’s sustainability indicators are very high, with one of the youngest & most rapidly urbanising populations in the world. With real estate prices far lower than other South East Asian counterparts and being a vibrant city now home to regional headquarters for more and more multinational companies, Kuala Lumpur itself is rapidly developing with plenty more room for growth.

As mentioned briefly, with an extremely confident banking sector and rapidly increasing local urban wealth, affordability is at a ten-year high. With international investment of highest priority to the Malay government, this market liquidity has trickled down through to residential property investors, making mortgage acquisition now easier even to foreigners and positively affecting the property market.

In addition to all these factors, Malaysia has a rapidly expanding tourism market thanks to its stunning natural beauty, cost of travel and unspoilt feel slowly disappearing in other regions of South East Asia. From the nightlife of KL, through the jungle depths of Taman Negara to the heavenly beaches of Langkawi, Malaysia has something for everyone.

6 Economy

Malaysian economy is on track to achieve stronger GDP growth of around 5.9% in 2006, from 5.4% in 2005. Unemployment is maintained at a healthy 3.5% over the past 5 years.

Known as the “manufacturing hub of the east”, Malaysia’s manufacturing sector now accounts for 31.6% of GDP whilst exports of manufactured goods make up 78.4% of the country’s total exports. From being the world’s largest producer of rubber and tin, Malaysia is today one of the world’s leading exporters of semiconductor devices, computer hard disks, audio and video products and room air-conditioners. Known as the “Multimedia Super Corridor”, Malaysia’s export growth in 2006 was lifted further by the tech recovery and expanded at a stronger pace of around 10.0%, (8.3% 2005).

Today, Malaysia’s market-oriented economy, combined with an educated multilingual workforce and a well-developed infrastructure, has made Malaysia one of the largest recipients of FDI among developing countries. Foreign Direct Investment in 2004 reached the highest growth levels since the Asian Financial Crisis in 1997, with figures reaching $8.5bn in 2004. The Institute for Management Development (IMD) in its 2004 World Competitiveness Yearbook ranked Malaysia as the 5th most competitive country in the world (for countries with a population of greater than 20 million), ahead of countries such as Germany, United Kingdom, Japan and Mainland China. According to the latest Offshore Location Attractiveness Index (A.T. Kearney), Malaysia is among the top three contenders for off-shore business in the world. Malaysia is considered a “natural choice” for offshore services in view of its low costs, the most attractive business environment and high levels of global integration.

Foreigners are ploughing their money back into Malaysian assets not only for direct growth but also foreign exchange gains from the Malaysian Ringgit. Goldman Sachs and Morgan Stanley are predicting big movements for the Ringgit following its undervaluation being pegged to the US$. With China ready to ease its grip on the currency, Malaysia will have little reason to hold back the Ringgit, one more reason to obtain Ringgit assets as soon as possible.

7 Confident Banking Sector

With the booming economy, high levels of FDI, inflation under control and low levels of international debt, the Malaysian banking sector is now as confident as it has ever been. This confidence combined with low interest rates and increasing salaries, means banks are now far more prepared to lend on real estate assets. Offering higher loan-to-value mortgages and longer repayment periods this is now the highest affordability this decade, directly resulting in rising prices. Furthermore, banks are having to actively compete for a slice of the residential mortgage market, rolling out newer and better financing solutions to prospective house buyers, both locals and foreigners alike.

It is estimated that only 18% of the average household monthly income is now required to service the mortgage for an average priced house in the . This affordability is extremely good, compared to 35% during the Asian financial crisis, and with incomes rising leaves plenty more room for growth.

Interest rates are an important factor in the lending market. These are expected to either be kept low or rise just slightly, however with the robust economy and domestic demand continuing to rise, this should not affect the overall market confidence. Consumer spending sustained at around 10% for 2006.

8 Young, Educated & Urbanizing Workforce

Kuala Lumpur is the largest city and also the capital of Malaysia. Whilst Malaysia has a population of 24m, Kuala Lumpur is small by capital city standards with an urban population of only almost 2 million people. A modern & world-class city rapidly developing as a high-tech centre, Kuala Lumpur is famous for being home to the world’s tallest twin towers and the longest fully automated light rail transit system. Of vital importance to the Malaysian Economy is the continued ability to maintain high levels of foreign direct investment. To support the inflow of multi-national companies, the high level of education of the local population must be sustained.

Altogether, Malaysia now has over 500 private universities and colleges offering tertiary education in varieties of relevant fields, most multi-lingual but some in Kuala Lumpur specialising in education for Japanese, Korean or English speaking students. Central to this thriving education system is the provision of a young population in the right locations. Urbanisation is occurring rapidly; in 1993 only 54% of the Malaysian population was urban, rising to 66% by 2003 with projections showing this figure reaching 84% by 2023.

Not only is urbanisation important for continued education and economic expansion, but this is also a crucial consideration in the appraisal of the developing property market and its sustainability. With an extra 4.3m urban inhabitants expected in the next 15 years, primarily in Kuala Lumpur, the increased housing demand generated will be enormous.

Another big positive for the future of the Malaysian property market is its current low house ownership and young population. The total supply of houses is currently only 44% of the estimated demand, whilst over half the population under 27 years of age! Most of these younger individuals have not yet entered the property market, but with increasing education, incomes and affordability, they soon will. This increase in demand will cause another surge in market prices.

9 Tourism

With 16.5 million arrivals in 2005, increasing from just 10.5 million in 2003, and 20 million forecasted for 2007, tourism is another economy thriving at around 8% a year.

Assisted by high levels of government expenditure, backed by the Malaysia My Second Home program (bringing retirees in to the country) and with Chinese tourism forecast to increase by 38% by 2009, this looks set to continue at a fast rate in the years to come. This year Malaysia is celebrating 50 years of independence and has launched its ‘Visit Malaysia 2007‘.

With visitors options ranging from the ubiquitous twin towers of KLCC, the tropical jungles of Taman Negara, some of the best dive sites in the World in Sipadan and of course the stunning Mount Kinabalu, the attractions are endless. Malaysia, with its diverse attractions, interesting gastronomy and friendly people, is rapidly becoming South East Asia’s most popular destination.

Kuala Lumpur International Airport (KLIA) itself opened in 1998 and is considered one of the most modern airports in the region. Its 10,000-hectare land area includes a Formula 1 racetrack – one of the fastest in the world - theme parks, an amusement centre and provision for airport expansion to handle 100 million passengers annually.

For a great insight in to the enchanting country of Malaysia, please visit: http:www.tourism.gov.my

10 Mont’ Kiara

Overview of investment indicators for Mont’ Kiara

– Demand

– Desirable

– Infrastructure

– The experts

11 Demand

International and local property buyers looking to invest in Malaysia have a wealth of urban residential real estate and tropical holiday accommodation to choose from. Those looking for a lifestyle purchase will either be drawn to the coastal resort regions or may favour the cosmopolitan Kuala Lumpur. Offering a high yield market, an under-supply of good housing stock in areas of big demand, and high medium to long-term growth potential, Kuala Lumpur is our recommendation to those looking for the best investment options. In particular, for reasons we will now explain, Fairbrother Asset Management rate the suburb of Mont’ Kiara over any other, where “take-up rates” have been some of the highest the past year. As a result of the high sales rate in this area, an upsurge in interest from developers to acquire land in up-market residential project areas has occurred, continuing to push prices higher. Land is now scarce to be found, increasing developer prices and pushing prices from the base, whilst the huge popularity of the region is also squeezing prices upwards at the top.

12 Desirable

The strategically located Mont’ Kiara enclave in attracts a high expatriate population, representing more than 30 nationalities. In particularly, the Japanese, Korean, British and Americans enjoy this region the most, the first two of whom comprise almost half the total residential population.

Served by two local international schools (American & British), a Japanese school just 15 minutes away, and only 10 minutes from the Central Business District, focus is on continuing to attract international investors coming in by their thousands to service the rapidly expanding Malaysia business sector.

From a business perspective, Mont’ Kiara is important – being the first township in Malaysia with full broadband services for residential and business users. With high level of infrastructure and modern transport links, Mont’ Kiara is also ideal for attracting new businesses to the area and continues to be one of the main regions of interest for multi-national companies.

For recreation, the area boasts a prestigious golf club, an equestrian club, cafes and restaurants, some of the nicest commercial centers in the country and a modern sports stadium. For relaxation there is also the renowned “Flea Market” providing the opportunity to browse arts & crafts, whilst the broad range of leisure facilities at Plaza Mont’ Kiara gives something else for the weekend.

Combining leisure, work and home all within walking distances, Mont’ Kiara is the only choice for those looking for the dream lifestyle.

13 Infrastructure

Mont’ Kiara is an extremely popular township strategically located at the heart of Klang Valley, 15mins to the North West of (KLCC) and 10 minutes from the Central Business District.

It is an established commercial and social hub with good public transport accessibility, modern transport links and public transport.

Connected via various major arteries; the “Sprint Highway”, the “Expressway”, the “Federal Highway”, the “Penchala link tunnel” and the “Kerinchi Link” all provide high-speed commuting to central and South KL and to the North of Malaysia.

Ideal for those focused on making the most of beautiful Malaysia, access to the northern part of the country is easy via the North Klang Valley Expressway (NKVE).

14 The experts

What are your pick of the residential hotspots? (The Sun, Malaysia, 2006)

“Mont’ Kiara/ as it has already established the critical mass and popularity for high-end housing, especially condominiums.” (Datuk Lee Yeow Chor, Group Executive Director, IOI Properties Bhd)

“With increasing number of properties coming in to the market, location will be a crucial factor in determining price and demand. Investors will also be selective, focusing on development companies with a strong presence in the Klang Valley, superior product attributes, strong branding and a track record.” (Robert Tan, Group Managing Director, IGB Corporation Bhd)

“Mont’ Kiara – good accessibility to KL and PJ; amenities such as international schools, retail centres, recreation clubs and golf courses; natural “lifestyle” enclave inherent in the culture of a primarily expatriate population” (Datuk Michael Yam, Managing Director, Sunrise Bhd)

15 Developer

Ireka Land Sdn Bhd. Listed on the Kuala Lumpur Stock Exchange, Ireka is a leading construction & development company in Malaysia, with a focus on four core businesses - Construction, Property Development/Real-Estate, Hospitality & Leisure and e-commerce & IT.

Under the i-Zen brand, Ireka is the owner and developer of a selection of meticulously designed up-market residential and commercial properties in Malaysia such as i-Zen @ Kiara, i-Zen @ Kiara 2, i-Zen @ Villa Aseana and i-Zen @ Tiffani.

For more information on the developer and an insight in to their business please visit: www.ireka.com

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