Research
‘THE WEEK THAT WAS’
15th January – 21st January 2018
The Maples Niseko, Hokkaido, Japan
Knight Frank Malaysia
Prepared by:
Research & Consultancy Knight Frank Malaysia Suite 10.01, Level 10 Centrepoint South Mid Valley City, Lingkaran Syed Putra 59200 Kuala Lumpur
T: +603 228 99 688 F: +603 228 99 788
Table of Contents
(A) RESIDENTIAL ...... 6 Westside III project in Desa ParkCity ahead of schedule, says GDB (theedgemarkets.com, 17th January 2018) ...... 6 1,000-strong crowd at ballot for Platinum Victory’s affordable housing projects (EdgeProp.my, 16th January 2018) ...... 6 Sime Darby Property launches Azira in Bandar Bukit Raja (The Star, 18th January 2018) ...... 7 Sime Darby Property to launch 1,000 affordable units this year (The Edge Financial Daily, 17th January 2018) ...... 7 Luxury homes close to nature (The Star, 21st January 2018) ...... 8 80,000 Rumawip homes by year end (The Star, 16th January 2018) ...... 8 Hektar Aneka aims to build more affordable homes (The Malaysian Reserve, 17th January 2018) ...... 8 More affordable homes to be built by PR1MA in Sabah (The Sun Daily / Bernama, 20th January 2018) ...... 9 MBSB sees affordable housing to boost project financing to RM1.9b (New Straits Times, 16th January 2018) ...... 10 Maybank Islamic's rent-to-own scheme now open to public ([email protected], 16th January 2018) ...... 10 (B) MIXED DEVELOPMENT ...... 11 Berjaya Land’s tall order (Focus Malaysia, 13th – 19th January 2018) ...... 11 Aspen inks partnership with LG smart products (theedgemarkets.com, 118th January 2018) ...... 12 Poised to transform town (The Star, 21st January 2018) ...... 12 (C) COMMERCIAL / OFFICE ...... 13 Wisma MCA to be redeveloped (Focus Malaysia, 13th – 19th January 2018) 13 Jabil finds home in refurbished mall (The Star, 17th January 2018) ...... 13 (D) RETAIL ...... 14 Shopping malls turn to F&B for better yield (The Malaysian Reserve, 15th January 2018) ...... 14 IGB expands Dave’s Deli chain to Sydney (The Edge Financial Daily, 19th January 2018) ...... 15 Poh Kong aims to outdo strong FY17 growth (theedgemarkets.com, 17th January 2018) ...... 15 Online sales bring cheers to online retailers (The Malaysian Reserve, 15th January 2018) ...... 15 CJ Wow shop eyes RM120m sales (New Straits Times, 16th January 2018) ... 16 (E) INDUSTRIAL / PLANTATION ...... 16 Tasco sells warehouse, land in Port Klang for RM17.5m (theedgemarkets.com, 15th January 2018) ...... 16
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PetChem kick-starts 2018 with output at new Kuantan plant (The Malaysian Reserve, 15th January 2018) ...... 16 Dominant Enterprise to expand capacity at BM, Dengkil plants (The Star, 16th January 2018) ...... 17 CCM to boost chlor-alkali output at Pasir Gudang plant (The Star, 18th January 2018) ...... 17 (F) INVESTMENT ...... 17 Fostering closer ties between China and Sabah (The Star, 20th January 2018)17 (G) CORPORATE ...... 18 Advance Synergy expands property biz with Klang Valley commercial buildings buy (theedgemarkets.com, 16th January 2018) ...... 18 Aspen to invest RM58.8m in Selangor residential project (EdgeProp.my, 15th January 2018) ...... 19 Titijaya has ongoing, future projects of RM12.3b GDV (The Edge Financial Daily / Bernama, 15th January 2018) ...... 19 Titijaya lines up RM1.45b new launches in FY18 (The Edge Financial Daily, 16th January 2018) ...... 20 Sime Darby Property FY18 sales seen exceeding FY17’s(The Edge Financial Daily, 19th January 2018) ...... 20 Jalan Semarak parcels returned to Felda (EdgeProp.my, 15th January 2018) 21 Mofaz seeks to list construction unit in 3 years (The Edge Financial Daily, 15th January 2018) ...... 21 Gabungan AQRS and Tera Capital agree to more time for One Jesselton project ([email protected], 16th January 2018) ...... 22 Sunsuria eyes large scale infrastructure projects (The Star, 17th January 2018)22 MMC liquidates JV company with Zelan (theedgemarkets.com, 16th January 2018) ...... 23 (H) REIT / FUND ...... 23 Pavilion REIT expects 5-6% rental rate growth in 2018 (The Malaysian Reserve, 16th January 2018) ...... 23 MQREIT 4Q earnings slump to RM3.32m, proposes final gross income distribution of 4.16 sen (theedgemarkets.con, 19th January 2018) ...... 23 (I) TOURISM / LEISURE ...... 24 Malaysia's first Banyan Tree resort to open in June (theedgemarkets.com, 15th January 2018) ...... 24 WCT, EPF launch New World Petaling Jaya Hotel (The Edge Financial Daily, 18th January 2018) ...... 24 Avillion Hotel Group opens its fifth hotel in Cameron Highlands (theedgemarkets.com, 17th January 2018) ...... 25 KL to welcome its first Fairfield by Marriott by 2020 (EdgeProp.my, 18th January 2018) ...... 25 International firms can help promote local products (New Straits Times, 18th January 2018) ...... 26
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Developer introduces shared ownership model (EdgeProp.my, 19th January 2018) ...... 26 Crest Builder gets RM149.5m hotel building job (theedgemarkets.com, 18th January 2018) ...... 27 MNC Wireless to take up units in Malacca's Marina Point for luxury homestays ([email protected], 15th January 2018) ...... 27 Higher international arrivals benefit local theme parks (The Malaysian Reserve, 15th January 2018) ...... 28 RM46mil project in Melaka to include 2.5km cable car line and theme park (The Star, 19th January 2018) ...... 29 ESCAPE appoints events consultant to enhance services (The Star, 19th January 2018) ...... 29 Xiamen Airlines makes inaugural Beijing-KK flight (The Star, 16th January 2018) ...... 29 (J) INSTITUTION ...... 30 Ekuinas sells Tenby Education Group (theedgemarkets.com, 17th January 2018) ...... 30 JM Education targets listing on LEAP Market (The Star, 17th January 2018) . 31 Doctor2U aims Oceania market (The Malaysian Reserve, 17th January 2018)31 Mexter’s healthcare business takes off (The Star, 20th January 2018) ...... 32 (K) INFRASTRUCTURE ...... 33 Three local consortiums, one Chinese consortium submit tenders for MRT Circle Line (theedgemarkets.com, 19th January 2018) ...... 33 First phase of Iskandar Malaysia BRT to be ready by 2021 (the Star, 19th January 2018) ...... 33 Malaysia-Singapore ink agreement on RTS (Bernama, 16th January 2018) ... 34 JB-S’pore rapid transit system to start by Dec 31, 2024 (EdgeProp.my, 16th January 2018) ...... 34 Japan HSR equity offer to Malaysia, Singapore companies (EdgeProp.my, 15th January 2018) ...... 34 YTL Corp’s KL-Singapore HSR operating company bid looks promising (The Edge Financial Daily, 18th January 2018) ...... 35 ECRL set to transform the East Coast (The Star / Bernama, 19th January 2018)36 HSS associate gets China letter for ECRL job (The Star, 18th January 2018) .. 36 (L) ISKANDAR MALAYSIA ...... 36 Sunway Citrine Hub to steer Lakeview Precint growth (New Straits Times, 19th January 2018) ...... 36 Capital World launches Malaysia’s biggest indoor theme park (EdgeProp.my, 15th January 2018) ...... 36 Johor aiming to become high-value tourist destination (The Star, 20th January 2018) ...... 37 Mah Sing partners EduCity to provide fully furnished accommodation (theedgemarkets.com, 17th January 2018) ...... 37
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Forest City developer signs MoU with schools (The Star, 20th January 2018)38 Johor MB: RTS will boost cross-border economy between Malaysia and Singapore (The Star, 20th January 2018) ...... 39 (M) OTHERS ...... 39 DBKL: Register with us if you rent your properties out for short stays (EdgeProp.my, 19th January 2018) ...... 39 Another 55 owners of The Arc@Cyberjaya units to sue Meda Inc's Maju Puncakbumi over GRR scheme ([email protected], 17th January 2018) ...... 40 Comfortable living quarters for construction workers (The Malaysian Reserve, 19th January 2018) ...... 40 Labuan IBFC to unveil transformational plan (New Straits Times / Bernama, 17th January 2018) ...... 41 All domestic economic sector to grow in 2018: SERC (New Straits Times, 17th January 2018) ...... 41 Labour force participation and unemployment rates drop in November ([email protected], 15th January 2018) ...... 42 KL much more affordable for rental accommodation, Singapore 8th most expensive (NST Business, 16th January 2018) ...... 42 (N) OVERSEAS ...... 43 Malaysia, Singapore successfully delivers Marina One, DUO (NST Business, 15th January 2018) ...... 43 MTD Capital to build RM1.77b ‘Putrajaya’ in the Philippines (EdgeProp.my, 20th January 2018) ...... 44 Berjaya Land unit submits arbitration notice to recover sum from China mall sale (theedgemarkets.com, 19th January 2018) ...... 44 T7 Global receives shareholders' approval for RM31m property disposal in Birmingham (NST Business, 15th January 2018) ...... 45 EWI achieves cumulative sales of RM7.7b from UK and Australian projects (theedgemarkets.com, 16th January 2018) ...... 45 Creation of long-term asset ownership platform for Battersea power station (theedgemarkets.com. 18th January 2018) ...... 45 UK RICS house price gauge unexpectedly picks up from four-year low (The Star, 18th January 2018) ...... 46 SP Setia raises the bar with UNO Melbourne (The Star, 18th January 2018) . 47 Amcorp Properties JV to finalise first HK purchase by Q1 of 2018 (The Star, 18th January 2018) ...... 47 China’s home prices rise in most cities in 6 months (The Malaysian Reserve, 19th January 2018) ...... 48 Chinese demand drives construction boom in Cambodia (Reuters, 16th January 2018) ...... 49 China's Wanda sells interests in high-profile London property project (The Star / Reuters, 17th January 2018) ...... 49
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JD.com widens South-East Asia presence by investing in Vietnam’s Tiki.vn (The Star / Reuters, 16th January 2018) ...... 50 China luxury sales rebound as millennials snap up cosmetics, handbags — report (Reuters, 17th January 2018) ...... 51 Lower investments abroad by China in 2017 (The Star, 17th January 2018) .. 51
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(A) RESIDENTIAL
Westside III project in Desa ParkCity ahead of schedule, says GDB (theedgemarkets.com, 17th January 2018)
• GDB Holdings Bhd said construction of the RM245 million Westside III mixed development project in Desa ParkCity is ahead of schedule.
• Work had commenced on December 21, 2015 and the contractual completion date is December 20, 2018.
• GDB was appointed as the main contractor by Perdana ParkCity Sdn Bhd.
• Westside III is a 49-storey condominium which is currently the tallest structure in Desa ParkCity. It consists of 469 residential units, with facilities that include a jogging track, a water park, secret garden, sun deck, kids' fun zone, and multipurpose hall.
1,000-strong crowd at ballot for Platinum Victory’s affordable housing projects (EdgeProp.my, 16th January 2018)
• About 1,000 potential homebuyers showed up to ballot for Platinum Victory Sdn Bhd’s affordable homes under the Rumah Wilayah Persekutuan (RUMAWIP) scheme: VISTA Wirajaya and VISTA Wirajaya 2, on Sunday afternoon.
• The 35-storey VISTA Wirajaya and 30-storey VISTA Wirajaya 2 consist of 515 and 438 homes respectively, offering a total of 953 condo units.
• The former will offer homes of 884 sq ft while the latter will offer homes of 850 sq ft and 1,000 sq ft.
• Each home is priced at RM300,000.
• Facilities for VISTA Wirajaya and VISTA Wirajaya 2 are comparable to the condominium facilities.
• Both projects are located 200m from Taman Melati LRT (Light Rain Transit) Station and is within walking distance to Tunku Abdul Rahman University College, making them very attractive to homebuyers.
• VISTA Wirajaya and VISTA Wirajaya 2 were over-subscribed as much as three times the units offered ever since they opened for registration in the RUMAWIP website in August 2017.
• Those who have registered for VISTA Wirajaya and VISTA Wirajaya 2 but have yet to get their approval letters will be placed on the waiting list.
• RUMAWIP registrants should also consider VISTA Langkawi, which is located along Jalan Langkawi, Setapak that has all the convenience of city living with amenities nearby like hospital, LRT station, bus stops and shops. The homes in this scheme will have built-ups of 926 sq ft.
• Platinum Victory has more launches in the offing.
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Sime Darby Property launches Azira in Bandar Bukit Raja (The Star, 18th January 2018)
• Sime Darby Property is launching its latest residential development, Azira in Bandar Bukit Raja.
• The development comprises 111 units of 20’ x 75’ double-storey link homes with a built-up area from 1,901 sq ft to 2,275 sq ft and comes with four bedrooms and four bathrooms.
• Offering freehold ownership, the prices start from RM678,888 before Bumiputera discount with the completion date slated for January 2020.
• Azira is also the first launch in Bandar Bukit Raja that will fully incorporate the ‘Bandar Bukit Raja (BBR) Home Design Principles’ concept focusing on four key areas of Natural Ventilation, Natural Lighting, In Harmony with Nature, and Multi- Generational Homes.
Sime Darby Property to launch 1,000 affordable units this year (The Edge Financial Daily, 17th January 2018)
• Sime Darby Property (SD Property) plans to launch about 1,000 affordable apartment units this year under the Selangor government’s housing programme, Rumah Selangorku, by mid-2018. The affordable apartments to be priced between RM200,000 and RM270,000, will have built-up area between 900 sq ft and 1,000 sq ft.
• SD Property is looking to launch 1,000 units by May or June this year in the City of Elmina and in Putra Heights, Subang Jaya.
• The 5,000-acre (2023.43-hectare) City of Elmina freehold township development by SD Property, with an estimated gross development value (GDV) of RM27 billion, covers Denai Alam, Bukit Subang, Elmina East and Elmina West.
• The units to be built under the Harmoni project at Elmina West, with GDV of RM155 million, will be housed in three residential blocks of 19 to 20 storeys each, with 562 units in total. The project will be complemented by 11 units of shop offices.
• Separately, through a collaboration with the youth and sports ministry, SD Property has named the 36-acre Elmina Community Park as “Elmina TN50 Community Park” to support the aspirations of the TN50 youth initiative on sustainability, including for greener, affordable housing and quality living standards.
• SD Property will also launch part of the 1,700 units of affordable apartments that it is developing at Harmoni 1 in Putra Heights, to make up the remaining target of 1,000 affordable homes it wants to launch by mid-year. Harmoni 1 has an estimated GDV of RM359 million.
• Harmoni will be SD Property’s third affordable housing project under Rumah Selangorku, after Bandar Bukit Raja launched in 2015, and Harmoni 1 in Putra Heights.
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• Meanwhile, SD Property aims to launch its double-storey link homes at Denai Alam and Elmina West, with built-up areas of between 24x80 ft and 20x70 ft. The homes will be sold between RM600,000 and RM800,000 per unit.
Luxury homes close to nature (The Star, 21st January 2018)
• The luxurious Astana Parkhomes in Sungai Petani, Kedah, include the stylish Natalea and Natasya single-storey link bungalows. Both types are set on plots of land measuring 40ft x 80ft.
• The Natalea units are priced from RM385,000 and have built-up areas of 32ft x 50ft while the Natasya units are priced from RM388,000 and have built-up areas of 32ft x 49.5ft.
• Also part of this urban community are Davinea single-storey bungalows that sit on land measuring 60ft x 90ft and with built-up areas of 33.5ft x 52.5ft.
• Another township-style project in Sungai Petani, Puncak Surya has been developed progressively for over a decade with a range of homes that epitomise the notion of ‘affordable style’.
• Its latest components are the Neris single-storey linked bungalows that sit on plots sized at 40ft x 80ft. Designed to offer spacious living, they come with built- ups of 30.5ft x 45ft. Prices start from RM299,000.
• Both Astana Parkhomes and Puncak Surya are developed by Eupe Kemajuan Sdn Bhd, a subsidiary of Eupe Corporation Berhad.
80,000 Rumawip homes by year end (The Star, 16th January 2018)
• The Federal Territories Ministry is close to offering 80,000 affordable homes under the Rumawip programme in Kuala Lumpur by end of 2018.
• Buyers, however, are cautioned to adhere to the moratorium where they are not allowed to sell their units in the next 10 years. This is to avoid property market speculation and it benefits the next generations of buyers.
• As of last month, the Rumawip programme had reached 89.44% of the targeted units offering a total of 71,554 units in Kuala Lumpur and Putrajaya.
Hektar Aneka aims to build more affordable homes (The Malaysian Reserve, 17th January 2018)
• Hektar Aneka Sdn Bhd plans to develop more affordable housing projects in Kuala Lumpur (KL), particularly under the Rumah Wilayah Persekutuan (Rumawip) campaign, in line with the government’s mandate build 80,000 units under the scheme by 2020.
• The company’s sole focus is to support the government’s aspiration to develop more affordable housing projects to boost the nation’s home ownership level, particularly among the younger buyers.
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• The company has bought several pockets of land in strategic areas in KL, which it hopes to transform into another Bumiputera and Islamic housing concept by year-end, following the recently unveiled Residensi Hektar,.
• Hektar Aneka is expected to contribute approximately 2,400 units to the Rumawip scheme once its condominium project Residensi Hektar, which has an estimated gross development value (GDV) of RM700 million, is completed by December 31, 2021.
• Since the condominium sits on a plot of Malay Reserve land, it is targeted at Bumiputera buyers.
• Currently, the project has garnered a 60% take-up rate and is expected to be fully sold in the immediate future.
• The development comprises five high-rise blocks and is strategically located with choice proximity to many highways for easy access to the city, surrounding suburbs and also to interstate destinations.
• Residensi Hektar is located next to Gombak Main Market along Jalan Gombak. The three-bedroom, two-bathroom units are priced between RM266,000 and RM299,500.
More affordable homes to be built by PR1MA in Sabah (The Sun Daily / Bernama, 20th January 2018)
• The state government will build more affordable homes in Sabah to enable the people, especially those in the middle-income group (M40), to own a house.
• The prices of homes offered by PR1MA Corporation Malaysia (PR1MA) are lower by 10% to 15% than those built by the private sector.
• The new housing development of PR1MA @ Menggatal targets those in the M40 group. It features a community lifestyle living concept and offers 1,200 units priced at RM243,000 to RM300,000 for unit sizes of 850 sq ft to 1,000 sq ft. The project will soon commence and is expected to be completed within three years.
• The PR1MA @ Menggatal project, equipped with various facilities such as closed-circuit television cameras, a multipurpose hall, nursery and surau, is among those open for sale in the first quarter of 2018.
• Other projects to sell their units in the first three months of this year are PR1MA @ Borneo Cove (999 units), PR1MA @ Kota Marudu (360), PR1MA @ Ranggu (1,300), PR1MA @ Kinarut Selatan (502), PR1MA @ Pusat Bandar Sandakan (750) PR1MA @ Kota Marudu 2 (360).
• Over 5,000 units at an estimated gross development value (GDV) of RM1.25 billion will be sold in the first quarter of 2018 for those in the M40 group in Sabah who are keen on quality housing equipped with various facilities to suit their lifestyle.
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MBSB sees affordable housing to boost project financing to RM1.9b (New Straits Times, 16th January 2018)
• Malaysian Building Society Bhd (MBSB) sees more growth opportunities in affordable housing this year, which will boost its project financing for the sector close to RM1.9 billion.
• The bank will finance another eight more Rumawip projects with financing facilities of RM700 million.
• MBSB has so far financed nine Rumawip projects with total approved facilities amounting to RM1.17 billion.
Maybank Islamic's rent-to-own scheme now open to public ([email protected], 16th January 2018)
• Maybank Islamic Bhd’s rent-to-own (RTO) scheme, dubbed HouzKEY, is now open to the public for application.
• The scheme was first launched last November whereby it was only made available to Maybank employees.
• Since the launch, it has recorded about 13,000 visits to its portal and 2,000 of them have indicated interest on the product.
• Close to 70% of them are from the target age group of between 25 and 34 years old.
• Through the portal www.Maybank2own.com, the public can now browse through a range of properties by 12 established developers which include EcoWorld Bhd, SP Setia, Mah Sing Properties, Sime Darby Property, Gamuda Properties, UEM Sunrise, Selangor Dredging Bhd, and Mitraland. It is expected that seven more developers will come on board by the end of this month.
• HouzKEY has been designed to provide an alternative solution for home ownership through an innovative scheme which only requires three months of rental deposit and the customer can immediately move into their dream house. The customers are given the option to purchase the property after renting for at least one year at a pre-agreed price.
• HouzKEY is the first such RTO homeownership plan in the country to be fully enabled on a digital platform, with the application and submission of supporting documents all being done online.
• Once an applicant chooses a property on the online portal and applies to rent it under HouzKEY, the bank will provide a decision within 24 hours working day, following which the customer must make the three-month rental deposit within seven days.
• After the agreement is signed, the property is locked in at a fixed rental price for five years and the customers can migrate to Maybank mortgage seamlessly after
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one year of renting, or they can continue renting with 2% step up on the 6th year until their tenure end.
(B) MIXED DEVELOPMENT
Berjaya Land’s tall order (Focus Malaysia, 13th – 19th January 2018)
• Berjaya Land Bhd, the property arm of Berjaya Group, has set its sights on tripling revenue for the coming year. • Projects expected to contribute to the developer’s ambitious taget include The Ritz-Carlton Residences Kuala Lumpur, The Tropika in Bukit Jalil, bungalow developments at The Peak in Ampang and Kensington Gardens in Penang, as well as Timur Bayu condominium in Shah Alam. • The Ritz-Carlton Residences Kuala Lumpur One of the developer’s most iconic projects in the city centre, developed in partnership with international hospitality label, The Ritz-Carlton. The RM1.21 billion branded residences project is a 48-storey tower in a larger 1.1-hectare Berjaya Central Park integrated development at the junction of Jalan Ampang and Jalan Sultan Ismail, with the 48-storey Menara Bangkok Bank as its sister tower. In total, The Ritz-Carlton Residences offers 288 residential suites with built- ups from 1,023 sq ft to 4,284 sq ft in eight layouts, with average selling price of RM2,384 per sq ft to RM3,002 per sq ft. Launched in May 2014, the freehold project was handed over by Berjaya Corp Bhd’s subsidiary, Wangsa Tegap Sdn Bhd last December 8, and is currently managed by The Ritz-Carlton Hotel Company LLC. • The Tropika in Bukit Jalil This is Phase 2 of The Link 2 mixed development in Bukit Jalil. The Tropika, on site spanning 2.62 hectares, features 861 residential units in four towers, along with initial plans for 14 retail units and 14 dining outlets for an estimated gross development value (GDV) of RM730 million. Built-up areas range from 997 sq ft to 1,049 sq ft with pricing from RM665 per sq ft to RM815 per sq ft. The first tower is tentatively slated for launch in April. Completion is expected by first half of 2022. • Timur Bayu in Shah Alam This is a RM333 million freehold condominium project on a 3.44-hectare site in Berjaya Park, Shah Alam. It will comprise 456 units in three high-rise blocks and 62 residences in eight low-rise blocks. The units with built-ups from 1,000 sq ft to 1,200 sq ft have target pricing of RM540 per sq ft to RM570 per sq ft. It is scheduled for launch in the third quarter • The Peak in Taman Tun Abdul Razak This project features 88 bungalow lots with land area from 8,624 sq ft to 71,994 sq ft and price points from RM321 per sq ft. Launched in October 2005 and completed three years later, the project has a GDV of RM300 million. • Kensington Gardens in Penang Located adjacent to the Penang Turf Club, the project offers 69 bungalow lots with land areas from 6,000 sq ft to 10,000 sq ft, priced at RM671 per sq ft. It forms the first phase of its larger Jesselton Villas project with a total GDV of RM1.3 billion in four parcels.
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Aspen inks partnership with LG smart products (theedgemarkets.com, 118th January 2018)
• Aspen (Group) Holdings has entered into a collaboration with South Korea's LG Electronics Inc.
• Under the collaboration, LG will offer its products, services and technology solutions to the group to enhance its real estate developments in South-east Asia, including Aspen Vision City. Aspen Vision City is a 245-acre (99 hectares) freehold mixed-development project between Aspen Group and IKEA Southeast Asia located in Batu Kawan, Penang.
• This comes as Aspen is seeking to outfit its developments with the latest functional technology — such as smart business solutions, home appliances and/or home automation solutions which are Internet of Things (IoT) enabled — to drive down costs and enable efficiency.
• Under this agreement, LG will also set up their first academy in Malaysia, where LG will provide training in skills specialisation, mechanical training and support in after sales service of LG's products. This is so as to build an ecosystem with highly skilled mechanics that can support the needs and solutions of the products and services provided by both Aspen Group and LG.
Poised to transform town (The Star, 21st January 2018)
• MBI International’s two integrated township developments of Desa Ku and MBI Soraya are all set to change the face of Kulim, Kedah.
• Located at Padang Meha, the mega projects will also stand tall as unique tourist attractions with their distinct lifestyle concepts.
• Desa Ku, sprawled across 248 acres of freehold land, will be a vibrant township with 2,000 residences and shop offices. There will also be a 12-acre Agro Park and a 47,000 sq ft convention centre. The former strives to reduce the carbon footprint on the environment while the latter is set to be the biggest convention centre in the northern region.
• Categorised into five phases, Desa Ku offers single, double and three-storey bungalows, semi- detached and terraced homes, all featuring aesthetic architecture and generous living spaces.
• Meanwhile, the double-storey shop offices come with lavish built-ups, an open layout and ample parking spaces. Fronting the Butterworth-Kulim Expressway (BKE), excellent visibility is assured.
• Desa Ku is easily accessible via the BKE leading to the Kulim Hi-Tech Park and is well-connected to established townships like Sungai Petani, Lunas, Seberang Jaya and Butterworth.
• The proposed Kulim International Airport and highway connecting Kulim to Bukit Mertajam in Penang, when completed, will further enhance the value of Desa Ku.
• The 3,651-acre MBI Soraya development is divided into 13 world-class districts - agro tourism, commercial park, auto park, theme park, commercial facilities,
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infrastructure zone, transportation hub, education park, commercial hub, industrial park, medical tourism and residential (two precincts).
• Targeted for completion in 2020, Phase 1 of My Garden Villa is an open-resort agro-tourism development spanning over 850 acres.
(C) COMMERCIAL / OFFICE
Wisma MCA to be redeveloped (Focus Malaysia, 13th – 19th January 2018)
• Plans are afoot for the 37-year old Wisma MCA in Kuala Lumpur to undergo a massive facelift involving the redevelopment of its annexe block.
• Built in 1981, the freehold office building owned by Huaren Resources Sdn Bhd is made up of a 23-storey office block and the annexe block.
• It is envisioned that the annexe block will be of similar height to the adjacent 23- storey office block. Its upper floors will mainly be used as office space while the lower floors will be made up of banquet and meeting halls.
• Existing tenants include Secret Recipe and Malayan Flour Mills Bhd.
Jabil finds home in refurbished mall (The Star, 17th January 2018)
• Multinational corporation (MNC), Jabil Inc, has secured its place as a tenant of the Global Business Centre (GBC) in Penang at GBS@Mayang in Bayan Baru. Jabil Sdn Bhd (Jabil Global Business Centre) signed the tenancy agreement with Penang Development Corporation (PDC).
• As a major tenant of the building, Jabil will occupy two floors covering over 72,700 sq ft, which will allow the company a future head count expansion of 1,000 executives.
• The new office will support its capabilities enhancement plans, which will include applying a robotic process automation investment in the centralised procurement function.
• Jabil has a long, established 23-year history in Penang. The MNC started its operations from a leased office building and now occupy several locations in Penang which house its manufacturing and shared services operations.
• On April 7 last year, it was announced that the state government would spend RM10 million to refurbish Mayang Mall building into a Global Business Services (GBS) centre known as GBS@Mayang for investors.
• About 110,000 sq ft of office space would be made available.
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(D) RETAIL
Shopping malls turn to F&B for better yield (The Malaysian Reserve, 15th January 2018)
• Shopping malls in the Klang Valley are undergoing a “transformation period”, with more retail operators across all tiers remodelling their retail spaces into food and beverage (F&B) outlets.
• Experts believe the integration of F&B outlets within a shopping space serves as a hedge against increasing competition, amid the aggressive rolling-out of new supplies of retail outlets.
• Malaysia Retail Chain Association (MRCA) had projected earlier in 2017 that shopping malls were expected to allocate 30% of their retail spaces to be converted into F&B outlets compared to the previous ratio of between 15% and 20%.
• Experts have since revised the ratio upwards to more than 30% as operators are pressured to introducing aggressive promotions, while integrating F&B outlets across different sets of retail genres.
• One of the leading retail operators, Sunway Shopping Malls — which is part of the Sunway Group conglomerate — is already reinventing its strategies to convert its malls from a traditional buying and selling place into a lifestyle destination.
• The social aspect of retail as a one-stop lifestyle centre is becoming more prominent. Hence, the need for more F&B outlets is becoming more significant, in line with the consumers’ evolution. There is a significant integration taking place among many retail outlets.
• In Sunway Pyramid alone, there are currently approximately 170 F&B outlets, which is a significant number for a first-tier mall within an integrated surrounding.
• Additionally, stand-alone malls and newer supplies that are about to enter the market are expected to face challenging times ahead compared to first-tier malls such as Sunway, One Utama, Pavilion Kuala Lumpur and Suria KLCC, which are all leveraging on the integration of their surroundings and amenities.
• At the moment, retail operators are burdened with approximately six million sq ft of additional retail spaces in the Klang Valley alone, which is expected to enter the market over the next two to three years.
• The situation worsens as consumers get more cautious with their spending habits — anticipating the outcome of the upcoming general election, apart from having to deal with the rising cost of living, risk of unemployment, as well as other macro and micro economic factors.
• The cloudy days projected for the retail segment are also reflected in Retail Group Malaysia’s downward revision of the industry’s annual growth forecast for 2017 from 3.7% to 2.2% for a total sales turnover of RM100 billion against its earlier projection of RM101.4 billion.
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• With the aggressive rollout of more F&B outlets amid booming demand, retailers also need to equip themselves with unique selling points to stay ahead of the curve of facing stiff competition.
IGB expands Dave’s Deli chain to Sydney (The Edge Financial Daily, 19th January 2018)
• IGB Corp Bhd is expanding its portfolio with the opening of Malaysia’s own Dave’s Deli in its Tank Stream Hotel in Sydney, Australia.
• The collaboration between Tank Stream Hotel and Dave’s Deli aims to offer a high-quality range of dishes served in under 10 minutes and at an affordable price. The philosophy is to go beyond takeaway food by providing made-to-order good value meals using fresh produce and quality ingredients, served quickly but in high-quality surrounds, differentiating the venue from food court outlets and American chain stores.
• Dave’s Deli has 12 outlets in Malaysia and the Sydney outlet is its first international venture.
Poh Kong aims to outdo strong FY17 growth (theedgemarkets.com, 17th January 2018)
• Poh Kong Holdings Bhd is expecting to better the double digit growth in net profit achieved in its financial year ended July 31, 2017 (FY17) in FY18.
• This comes with the extended upward trend in gold prices, as well as expectations of improving consumer demand.
Online sales bring cheers to online retailers (The Malaysian Reserve, 15th January 2018)
• Thanks to technology, retailers have and are moving out from brick-and-mortar stores to join the cyber world. As a result, street retail sales are accelerating on the Internet, offering shoppers better deals because they do not have to worry about the overhead expenses which traditional stores have to deal with.
• MyCybersale 2017, a five-day online sales festival organised by the National ICT Association of Malaysia along with the Malaysia Digital Economy Corp, managed to rack in a gross merchandise value (GMV) of RM311 million, exceeding the RM300 million target set for the year.
• RM39 million of the RM311 million GMV were derived from international shoppers which surpassed the export revenue target of RM20 million. It was a phenomenal growth of over 254% from the 2016 export revenue of RM11 million.
• According to ShopBack Malaysia, the average spending per customer surged more than threefold during the recent the 12.12 online shopping celebration compared to the Single’s Day 11.11.
• The average spending per customer during the 12.12 was RM485, whereas for 11.11 it was US$76 (RM302.04). This was due to the increase in travel bookings made for the year-end holidays along with Christmas gift purchases, as well as apparels purchases for the New Year.
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• ShopBack Malaysia collaborated with more than 30 online partners during 12.12, among them were Lazada, Zalora, 11street as well as Booking.com.
• On a separate note, founder of Christy Ng Sdn Bhd, who started her business in her mother’s living room years back, now owns five brick-and-mortar stores that delivers to 30 different countries. 60% of her customer base comes from the online store, whereas the remaining 40% of customer base are from its physical outlets.
CJ Wow shop eyes RM120m sales (New Straits Times, 16th January 2018)
• CJ Wow Shop, a media commerce company that has established a joint venture with Media Prima Bhd, is on track to double its revenue in 2017, targeting sales of up to RM120 million based on the success of its sales campaign throughout the year.
• The company’s achievement and future performance depends on a number of factors, including credibility and the capability to establish trust with consumers through televised product demonstrations.
• Operating across a broad range of platforms and channels — 20 million daily viewers on television, seven million tonton users and more than 170,000 CJ Wow Shop mobile app subscribers, the company has the potential to reach audiences nationwide, regardless of where they are.
• Established in 2016, CJ Wow Shop is a home shopping network that is accessible via television, online and mobile.
• Apart from Media Prima, the company also has a joint venture with South Korea’s CJO Shopping Co Ltd, Asia’s No. 1 TV home shopping operator.
(E) INDUSTRIAL / PLANTATION
Tasco sells warehouse, land in Port Klang for RM17.5m (theedgemarkets.com, 15th January 2018)
• Tasco Bhd is disposing of 7.8 acres of industrial land in Port Klang, Selangor to Onostatic Sdn Bhd for RM17.5 million.
• Its wholly-owned subsidiary, Titian Pelangi Sdn Bhd, entered into a sale and purchase agreement with Onostatic last Friday.
• The warehouse and office buildings sited on the plot of the land are currently rented by Titian Pelangi to Tasco for its warehousing business.
Note: The property consists of a parcel of leasehold industrial land held under Title HS(M) 6200, PT 4166, Mukim of Kapar, District of Klang, State of Selangor. The land, measuring 339,676 sq ft, is erected upon with a warehouse and building that bears postal address Lot 12, Lengkungan Sultan Hishamuddin, North Klang Straits Industrial Area, Kawasan 20, Mukim Kapar, 42000 Port Klang, Selangor. The property has a lettable aea of 144, 648 sq ft.
PetChem kick-starts 2018 with output at new Kuantan plant (The Malaysian Reserve, 15th January 2018)
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• BASF Petronas Chemicals Sdn Bhd, a subsidiary of Petronas Chemical Group Bhd (PetChem), has recently concluded the start-up of a new plant in Gebeng, Kuantan.
• The plant, the first of its kind in South-East Asia, successfully produced its first batch of highly reactive polyisobutene (HR-PIB). It has a total annual capacity of 50,000 metric tonnes.
Dominant Enterprise to expand capacity at BM, Dengkil plants (The Star, 16th January 2018)
• Dominant Enterprise, which manufactures environmentally friendly engineered wood mouldings, laminated wood panel products, plans to expand its production capacity through its Bukit Mertajam and Dengkil plants.
• The company also distributes and exports a wide range of wood panel products worldwide.
• Its plants are in Johor Bahru, Kulai, Muar, Sungai Buloh, Penang in Malaysia and Ho Chi Minh in Vietnam, which are adequate for present demand.
• The newly Bukit Mertajam plant may complement the existing production capacity of the Penang’s factory and allow the company to cater more effectively to demand from northern Peninsular Malaysia, as well as southern Thailand.
• Dominant intends to build a factory in Dengkil which is slated to start operations in 2020. This factory will place the company near its central peninsular customers with hope to capture a larger market share.
• It also plans to expand its geographical coverage to South Africa, the Philippines, and the Middle East as well as produce new products annually to remain innovative and competitive.
CCM to boost chlor-alkali output at Pasir Gudang plant (The Star, 18th January 2018)
• Chemical Company of Malaysia Bhd is spending RM68.5 million to increase chlor-alkali products output at its plant in Pasir Gudang, Johor.
• The project is expected to start by the end of this quarter.
• Chlor-alkali products are commodity chemicals required by a wide variety of industries. Its production typically consumes a lot of electricity.
• In November 2016, CCM completed a rationalisation exercise of its Pasir Gudang Work 1 (PGW1) and Pasir Gudang Work 2 plants in Johor Bahru to modernise the facilities.
(F) INVESTMENT
Fostering closer ties between China and Sabah (The Star, 20th January 2018)
• China plans to expand trade and other forms of exchange with Sabah and this has been further boosted by the Belt and Road Initiative.
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• Companies, such as the China National Complete Plant Import and Export Corporation and Huawei, have signed memoranda with local partners and there has been growing investment in the fields of agriculture, finance and business over the years.
• Sabah had also become the favoured destination of Chinese tourists, In 2016, 380,000 visited Sabah and this rose to 430,000 in 2017.
(G) CORPORATE
Advance Synergy expands property biz with Klang Valley commercial buildings buy (theedgemarkets.com, 16th January 2018)
• Kuching-based Advance Synergy Bhd is acquiring two commercial properties — one located in Jalan Yap Ah Shak here and the other at Temasya Glenmarie, Shah Alam — for a combined RM40.95 million.
• Its wholly-owned subsidiary Advance Synergy Realty Sdn Bhd has signed a sale and purchase agreement with Petaling Garden Sdn Bhd for the proposed acquisition of a 70% stake in a detached commercial five-storey building block in Jalan Yap Ah Shak for RM18.9 million.
• Separately, Advance Synergy Realty signed a deal with Temasya Development Co Sdn Bhd for a 70% stake in a detached commercial four-storey building in Temasya Glenmarie for RM22.05 million.
• Petaling Garden is wholly owned by I&P Group Sdn Bhd, a wholly-owned unit of S P Setia Bhd, while Temasya Development is a 66.06%-owned subsidiary of Petaling Garden and a 30.1% associate of UDA Holdings Bhd.
• The remaining 30% interest in both properties will be acquired by Kibar Konsep Sdn Bhd.
• The proposed acquisition forms part of Advance Synergy's new strategy to expand into property investment and diversify its property business from East Malaysia to Peninsular Malaysia.
• The group believes that the proposed acquisition will contribute positively to future earnings, given the prospects of the long-term growth and demand for co- working and serviced office spaces in the Klang Valley.
Notes: (1) Property 1 is a detached commercial 5-storey office block with car park on freehold land held under Title Geran 49661, Lot 5108, Seksyen 41, Bandar Kuala Lumpur, District of Kuala Lumpur, Wilayah Persekutuan, bearing postal address No. 17, Jalan Yap Ah Shak, 50300 Kuala Lumpur. The property built on land measuring 722 sq m has gross and net floor areas of 3,394.7 sq m and 1,878 sq m respectively. (2) Property 2 is a detached commercial 4-storey building block on freehold land held under Title Geran 332990, Lot 53432, Bandar Glenmarie, District Petaling, Selangor bearing postal address No. 9, Jalan Kajibumi U1/70, Seksyen U1, Temasya Glenmarie, 40150 Shah Alam, Selangor Darul Ehsan. The building erected on land measuring 3,314 sq m has gross and net floor areas of 5,178.48 sq m and 4,319.20 sq m respectively.
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Aspen to invest RM58.8m in Selangor residential project (EdgeProp.my, 15th January 2018)
• The Aspen Group will invest RM58.8 million to redevelop a piece of commercial land in Selangor through a joint venture with the Selangor Agricultural Development Corp (PKPS).
• The 12,185 sq m land in Seri Kembangan will be developed into a residential project with a gross development value (GDV) of about RM300 million.
• Sales are expected to begin from 2019.
• The land is in a prime location within a mature residential township with established infrastructure and amenities.
• PKPS will receive RM47.59 million in cash, with the remaining RM11.25 million payable with apartment units at a 10% discount to the market rate.
• Aspen is a Penang-based property development company.
• The group is well known for its Aspen Vision City project, a 245-acre freehold mixed-use development in Bandar Cassia, Batu Kawan, Penang.
• Aspen Vision City carries a total GDV of RM8 billion comprising a central transport hub, an international school, condominiums and suites, hotels, medical centre and healthcare facilities, shopoffices, apartments, a central island park, office towers, a shopping mall, and commercial and retail spaces.
Titijaya has ongoing, future projects of RM12.3b GDV (The Edge Financial Daily / Bernama, 15th January 2018)
• Titijaya Land Bhd, a leading Malaysian property developer, has currently on- going and future projects of about RM2.3 billion and RM10 billion in gross development value (GDV) respectively.
• The urban developments and land bank are located in strategic locations across Greater Kuala Lumpur, Penang and in Kota Kinabalu.
• To date, the developer has completed over RM3 billion worth of properties.
• The recent signing with Tokyu Land Corp (TLC) reflects its vision in partnering reputable companies to strengthen its capabilities and enhance the value of its developments.
• TLC, focusing on urban and transit-oriented development, wellness and overseas business, is a real estate company founded in 1953. It is the core company of the Tokyu Fudosan Holdings Group, which is listed in the First Section of the Tokyo Stock Exchange and Nikkei 225 Index.
• TLC invested RM47 million in Titijaya’s unit Epoch Property Sdn Bhd through a conditional share subscription agreement in November last year.
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• The agreement entails the subscription of the 47 million units representing 100% of Class A shares in Epoch Property for an on-going project, the Mizu Residence, in Ara Damansara, Selangor.
• Launched on Saturday, the project has a GDV of RM300 million.
Titijaya lines up RM1.45b new launches in FY18 (The Edge Financial Daily, 16th January 2018)
• Despite the overall still soft local property market, Titijaya Land Bhd in the second quarter ended December 31, 2017 of financial year 2018 (2QFY18) is expected to match its sales of about RM100 million achieved in 1QFY18, which helped to sustain its unbilled sales at about RM400 million.
• Similar to 1QFY18, the bulk of the sales in 2QFY18 has come from the RM916 million four-block H2O Residences in Ara Damansara, one the most sought-after addresses in the Klang Valley.
• At about RM835 per sq ft, the high-rise residential project is being priced at a slight premium to similar products in the vicinity. However, the sales have been strong, as it is able to differentiate itself from the others by branding itself as an aquatic themed project with, among others, a facade that resembles interlocking ice cubes, a swimming pool with an LED display of marine life and a children’s water playground, and a posh glass-walled gym overlooking the swimming pool. Given the compact sizes of 450 to 1,000 sq ft, the units are considered affordable in absolute terms.
• Overall, Titijaya has lined up RM1.45 billion new launches in FY18, largely in the affordable segment, such as high-rise residential units in Damansara West, Bukit Subang (RM300,000 to RM450,000 per unit) and The Shore @ Kota Kinabalu (RM455,000 to RM810,000 per unit), as well as compact serviced suites in Riveria @ KL Sentral (RM340,000 to RM780,000 per unit).
Sime Darby Property FY18 sales seen exceeding FY17’s(The Edge Financial Daily, 19th January 2018)
• The 5,000-acre (2,023.43-hectare) City of Elmina, which includes Elmina West (2,661 acres), Elmina East (1,089 acres), Denai Alam and Bukit Subang (1,250 acres), is located along the Guthrie Corridor Expressway (GCE). With a remaining developable area of 3,583 acres and remaining gross development value (GDV) of RM20.4 billion, it is currently the biggest township in Sime Darby Property’s portfolio. It contributes about 24% of the total remaining GDV of RM85.9 billion.
• City of Elmina is located 21km west of Kuala Lumpur City Centre. The township has good connectivity via the GCE (through Denai Alam and Elmina Interchange), Shah Alam-Batu Arang Highway, New Klang Valley Expressway, Kuala Lumpur-Kuala Selangor Expressway, and the proposed Damansara-Shah Alam Elevated Expressway (DASH), which is slated for completion in 2020. DASH will shorten the travelling time from Batu Arang-Penchala to 15 minutes versus one hour by the old route.
• Year-to-date financial year 2018 (FY18), Sime Darby Property has launched projects with a GDV of RM245.2 million in City of Elmina. For the second half of FY18, the group is expected to launch another RM618 million GDV worth of
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projects in City of Elmina. The launches in City of Elmina will contribute about 33% of its planned GDV launches of about RM2.6 billion in FY18. With the recent ramp-up in project launches, FY18 sales will likely exceed FY17 sales of RM1.92 billion.
Jalan Semarak parcels returned to Felda (EdgeProp.my, 15th January 2018)
• Synergy Promenade Sdn Bhd (SPSB) has returned all the land parcels at Jalan Semarak that were at the heart of a dubious land ownership transfer deal to the Federal Land Development Authority (Felda).
• A signing ceremony of a memorandum of understanding on the return of the parcels has been held between the developer and Felda.
• Felda had managed to lodge a personal caveat on the 16 parcels on April 14, and after making a police report on December 12, lodged a registrar’s caveat on 15 of the lots on December 26. A registrar’s caveat on the final lot was made after another police report on December 28.
• Following this, all the land titles of the 16 parcels alienated to the developer had been returned to Felda at no cost.
• Meanwhile, the Kuala Lumpur Vertical City (KLVC) will continue as development approvals have already been obtained, but Felda will negotiate with Synergy Promenade better terms for the project.
• Under the existing terms of the development agreement with SPSB, Felda is set to get either RM500 million or 10% of the GDV of KLVC, whichever is higher.
• Nonetheless, the police investigation will continue.
• The land parcels, which were transferred to SPSB in 2014, are valued at over RM200 million.
Mofaz seeks to list construction unit in 3 years (The Edge Financial Daily, 15th January 2018)
• The Mofaz group of companies has set out towards what would be its maiden listing in at least three years’ time via its property and construction business after acquiring a majority stake in a Chinese family-owned contractor.
• It is eyeing a possible initial public offering (IPO) that hinges on the financial performance of its new construction unit.
• The family-owned bumiputera conglomerate, via Kumpulan Mofaz Sdn Bhd, has inked an agreement for a 70% stake in YCM Construction Sdn Bhd. However, the purchase price was not disclosed.
• Upon the deal’s completion, the latter would be renamed Mofaz YCM Sdn Bhd.
• The new construction unit will take up the conglomerate’s construction and property development projects with an overall gross development value (GDV) of RM2 billion.
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• The project pipeline represents about half of Mofaz’s existing land bank and it (Mofaz) is examining the remaining parcels for future development.
• According to the Securities Commission’s listing requirements, the profit test listing route requires a company to have between three years and five years of uninterrupted profitability, with an aggregate net profit totalling RM20 million — with RM6 million from the most recent financial year.
• YCM holds a G7-category contractor’s licence and is also ISO9001:2008- certified. It also has a warehousing and steel fabrication facility measuring 25,000 sq ft in Serendah, Selangor.
• Meanwhile, Mofaz’s main businesses include being a distributor of Honda and Mercedes-Benz vehicles. It also operates several resorts and manufactures some fast-moving consumer goods, such as the Alla Fonte drinking water.
• The biggest among the projects is an upcoming high-rise development in Sungai Penchala , located near the Empire City Damansara project, which is envisioned to offer 1,400 units with a GDV of RM1.2 billion. Final approvals are expected to be obtained within the next month.
Gabungan AQRS and Tera Capital agree to more time for One Jesselton project ([email protected], 16th January 2018)
• Gabungan AQRS Bhd and Tera Capital Bhd have agreed to a second extension of time to finalise a definitive agreement to invest, construct and operate a mixed integrated property development on 6.284 acres One Jesselton Waterfront, Kota Kinabalu, Sabah.
• The initial memorandum of understanding (MoU) between Gabungan AQRS and Tera Capital signed on July 19, 2017, has now been extended to May 31, 2018.
Sunsuria eyes large scale infrastructure projects (The Star, 17th January 2018)
• Sunsuria Bhd, the property developer, is seeking shareholders approval to expand into construction and large-scale infrastructure development, projecting the new business division to generate more than quarter of its future profits.
• The company, however, did not identify any of the projects that it is eyeing to participate in.
• Sunsuria, in April last year, had acquired a majority 51% stake in a construction firm, Sunsuria Asas Sdn Bhd (SASB), which has a grade 7 license issued by Construction Industry Development Board (CIDB).
• It had also established in June, a joint venture with Hong Kong-based Citic Construction Co Ltd.
• The proposed diversification will be undertaken through SASB and Citic Sunsuria Sdn Bhd (CSSB) where in Sunsuria will be able to leverage on the proven track record, engineering expertise, technical sophistication and resources of the strategic partners in executing the construction projects as well as in identifying additional business opportunities and winning over large-scale infrastructure and property projects.
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• The company has no intention to exit the property business, saying that the proposed diversification will provide the group with additional sources of income.
MMC liquidates JV company with Zelan (theedgemarkets.com, 16th January 2018)
• MMC Corp Bhd has passed a special resolution to liquidate MMC Zelan Sdn Bhd (MMCZ), a joint venture (JV) company with Zelan Bhd, as part of its rationalisation efforts to wind up dormant subsidiaries.
• MMC and Zelan respectively hold 60% and 40% of the shareholding in MMCZ. The company was supposed to undertake any Light Rail Transit project but has not commenced any operations since its incorporation in May 2010.
(H) REIT / FUND
Pavilion REIT expects 5-6% rental rate growth in 2018 (The Malaysian Reserve, 16th January 2018)
• Pavilion Real Estate Investment Trust (REIT), managed by Pavilion REIT Management Sdn Bhd, is expecting single-digit rental rate growth for 2017 and 2018, with double-digit growth to register in 2019 as more tenants are due for contract renewal then.
• The REIT anticipates about 5% to 6% rental rate growth for 2017 and 2018, with some 17% of its tenants due for rental reversion in 2017 while 19% are due in 2018. Another 64% of its tenants are due to sign new contracts come 2019.
• The net property income (NPI) will likely see “strong single-digit growth in 2018, while NPI for 2017 will not be worse than the previous year.
• As for net profit, the REIT’s earnings for 2017 are expected to be flattish, while 2018 should see a return to positive expansion.
• The REIT’s largest asset, Pavilion Kuala Lumpur Mall, had an occupancy rate of 81% as at November 30, 2017, while the rate is currently closer to 98%.
• Its other malls, namely Intermark Mall in Kuala Lumpur and da:men in USJ, are targeted to hit occupancy rates of around 96% and 86% respectively this year.
MQREIT 4Q earnings slump to RM3.32m, proposes final gross income distribution of 4.16 sen (theedgemarkets.con, 19th January 2018)
• MRCB-Quill Real Estate Investment Trust (MQREIT) net profit for the fourth quarter ended December 31, 2017 (4QFY17) slumped to RM3.32 million from RM16.92 million a year earlier, despite recording a higher revenue of RM46.05 million versus RM38.93 million.
• For the financial year ended December 31, 2017 (FY17), MQREIT posted a net profit of RM69.91 million compared with RM62.77 million, on the back of revenue RM181.50 million versus RM136.65 million.
• Property operating expenses were higher by 18.6%, due to the inclusion of Menara Shell.
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• Overall, 4Q realised net property income rose by 35.2%, compared with a year earlier.
• On prospects, MQREIT said 14% of its total net lettable area (NLA) in 2017 was due for renewal. As at December 31, 2017, the Manager has successfully renewed approximately 80% of these leases and is now in active negotiations for the renewal of leases due in 1Q2018.
• Due to the challenging Klang Valley office market, the Manager will focus on asset management and leasing strategies that are centred on tenant retention to overcome the challenging operating environment.
(I) TOURISM / LEISURE
Malaysia's first Banyan Tree resort to open in June (theedgemarkets.com, 15th January 2018)
• Banyan Tree Hotels & Resorts will open Malaysia's first Banyan Tree resort in June in Kuala Lumpur's Golden Triangle, offering a modern city sanctuary with signature local experiences.
• Occupying the top seven floors of Banyan Tree Signatures Pavilion Kuala Lumpur building, Banyan Tree Kuala Lumpur features 55 rooms and suites, ranging from 51 sq m to 200 sq m in size, most of which overlook the Petronas Twin Towers and Kuala Lumpur Tower.
• The resort is designed for travellers looking to immerse themselves in the excitement of urban adventures, but still desire their own private haven to relax in. It is home to a French-inspired bakery at the Arrival Lobby, sky high afternoon tea and wine lounge on 53rd Floor, an exquisite steakhouse on 58th Floor and the highest hotel rooftop bar in the city centre on 59th Floor.
• Banyan Tree Kuala Lumpur also offers three spacious and fully equipped boardrooms for those seeking to host intimate executive meetings or private engagements, an open-air pool with a towers view, and a state-of-the-art gym.
WCT, EPF launch New World Petaling Jaya Hotel (The Edge Financial Daily, 18th January 2018)
• WCT Holdings Bhd and the Employees Provident Fund (EPF) opened the New World Petaling Jaya Hotel at the Paradigm Integrated Development in Kelana Jaya yesterday.
• The hotel is managed by New World Hotels & Resorts, which is one of the brands under Rosewood Hotels & Resorts — owned by Hong Kong-based New World Development, and is its first property in Malaysia.
• The hotel, which is jointly owned by WCT and EPF, shares a single 30-storey tower with a residential component called Azure Residences. The hotel rooms are situated from the 19th floor. The rooms will be released in phases and the full inventory of rooms will be available for booking by Chinese New Year.
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• The hotel is one component of the RM1.8 billion Paradigm integrated commercial development, which also includes Paradigm Mall and The Ascent corporate office tower.
• The investment for the hotel totalled RM300 million.
• Separately, there is one more parcel of land nearby, which WCT will develop a residential project called “Sapphire Residence” that will be launched in the second quarter of this year.
Avillion Hotel Group opens its fifth hotel in Cameron Highlands (theedgemarkets.com, 17th January 2018)
• Avillion Hotel Group Sdn Bhd's first hotel in Pahang and the fifth in its chain of Avillion-managed hotels, the Avillion Cameron Highlands, made its debut today after a soft opening.
• The five-storey new hotel sits on top of Cameron Fair — a new commercial and lifestyle development in Tanah Rata that is developed by Ascendvest Sdn Bhd.
• The hotel offers one hundred bespoke, spacious studios and suites, with facilities like a shared courtyard playground, an in-house F&B outlet that will be fully operational later this year, and a gymnasium.
• The location of the hotel is only a few hundred metres from Cameron Highlands' main public transportation hub.
KL to welcome its first Fairfield by Marriott by 2020 (EdgeProp.my, 18th January 2018)
• Marriott International Inc has partnered with Johawaki Holdings Sdn Bhd to introduce the first Fairfield by Marriott in Kuala Lumpur.
• JH Hospitality Sdn Bhd, a wholly-owned subsidiary of Johawaki Holdings, signed hotel management agreements for the 188-room hotel at Jalan Pahang today.
• JH Hospitality will undertake the construction of the hotel with a total development cost of RM85 million.
• Sitting on an 8,000 sq ft-land next to Grand Seasons Hotel at Jalan Pahang, the 14-storey Fairfield by Marriott Kuala Lumpur is expected to be fully operational by 2020.
• In Kuala Lumpur, Marriott International now has 15 hotels which are open under 11 brands.
• Fairfield by Marriott Kuala Lumpur is the second hotel under the brand in Malaysia, with the first one being Fairfield by Marriott Bintulu Paragon, which is expected to be opened in 2019 or 2020.
• Marriott International is also set to unveil a Marriott hotel in Kota Kinabalu later this year, followed by the opening of Courtyard by Marriott in Penang and Melaka and Marriott Executive Apartments in Kuala Lumpur in 2019.
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• Johawaki Holdings hopes to have more collaboration with Marriott International in the future to expand its presence in hospitality business.
• Currently, the company has some 50 acres of land in Alor Setar, Kedah; Seremban, Negeri Sembilan; and Melaka that are currently earmarked for more hotel developments.
International firms can help promote local products (New Straits Times, 18th January 2018)
• Green Target Group (GTG) and Best Western Hotels and Resort have signed a Joint Agreement that will see the construction of Best Western MesaHotel, which offers 210 rooms, and MesaHill Premier, a construction project of 1,076 units of apartments at MesaHill Nilai.
• The hotel, featuring a Rooftop Sky Lounge and Sky Walk, is expected to be completed by 2020, while MesaHill Premier, which is currently under construction, is expected to be completed this year.
• The project has an estimated gross development value (GDV) of RM350 million.
Developer introduces shared ownership model (EdgeProp.my, 19th January 2018)
• The property arm of Ho Wah Genting Group (USA) Ltd has recently introduced a new property investment concept for its two maiden hotel development projects in the country — Goldmen Suites near Bukit Bintang, Kuala Lumpur and HWG Resort in Port Dickson, Negeri Sembilan.
• The investment concept for Goldmen Suites and HWG Resort, based on a shared property ownership model, was introduced to the Malaysian market on November 11, 2017. Some 200 registrations of interest were received that day.
• Located at the junction of Jalan Kampung Pandan and Jalan Imbi, Goldmen Suites is a proposed 60-storey hotel project with 600 rooms, each with a built-up size of 500 sq ft. The project, which has a gross development value (GDV) of RM900 million, is a joint-venture project with Lembaran Beruntung Sdn Bhd, which is the landowner. The land is currently being leased to a carpark operator. Earthworks are expected to start once the lease expires in March this year.
• HWG Resort is a seafront development in Port Dickson with a GDV of RM900 million. There are three components in this project — a cruise entertainment hub, hotel town and water chalet. The water chalet component offers a total of 182 units with four different layouts ranging from 974 sq ft to 2,312 sq ft. The project is being developed by Earth Synergy Sdn Bhd, a wholly-owned subsidiary of Ho Wah Genting Property. The piling works will begin soon.
• Under the shared model, every unit in these two projects is allowed a maximum of 12 owners, with Ho Wah Genting Property being one of them so it can play the administrator role.
• At Goldmen Suites, instead of coming up with RM1 million for a unit, you will just need to fork out RM125,000 to become one of the 12 owners of a 500 sq ft hotel suite to enjoy benefits such as a 30 nights-in-a-year entitlement either for your own use or to be rented out for returns.
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• Besides paying RM125,000 as a one-off payment or a maximum of 24 months’ instalments to the developer, every investor will also need to pay RM700 in monthly maintenance fee.
• To avoid concurrent bookings by the unit owners during peak season, flexibility is given to the owners to utilise all their 30 nights’ entitlement at one time.
• The record of ownership and benefit entitlement will be done using blockchain technology.
• The company is also exploring the possibility of allowing bitcoin to be used for the transactions.
• One of the aims of this investment model is to encourage people to invest and do business, hence the lower entry point with no guaranteed returns.
Crest Builder gets RM149.5m hotel building job (theedgemarkets.com, 18th January 2018)
• Crest Builder Holdings Bhd has clinched a RM149.50 million contract to build a 44-storey hotel with a car park podium at Jalan Imbi.
• Its wholly-owned subsidiary Crest Builder Sdn Bhd secured the contract from Mega Capital Development Sdn Bhd.
• The contract spans 39 months from January 12 this year.
MNC Wireless to take up units in Malacca's Marina Point for luxury homestays ([email protected], 15th January 2018)
• M N C Wireless Bhd plans to turn 120 Dual-Key units under Sanichi Technology Bhd's Marina Point serviced residence and retail mall development in Klebang, Malacca, into luxury homestays.
• Sanichi’s wholly-owned subsidiary, Sanichi Property Sdn Bhd (SPSB) and MNC have inked a Memorandum of Understanding (MoU) to provide, online leasing or short-term rental service at SPSB’s development project.
• MNC will lease, upgrade, market and operate the units from SPSB, which has a special leaseback agreement with its individual unit purchasers at the point of sales for the next 10 years after the completion of the project.
• MNC and SPSB are looking to commence the partnership by second quarter of 2020. Currently, the retail section of Marina Point is 55% completed and residential is 25% completed, and on track to hand over to its unit owners by first quarter of 2020.
• Marina Point, a mixed development with a gross development value (GDV) of RM230 million, is located less than five minutes’ drive away from historical Bandar Hilir downtown Malacca, overlooking Straits of Melaka. It features a sky lounge, 1st mini water themed park, 52m long swimming pool, gymnasium, mini theatre and a mall.
• The demand and supply gap of hospitality in Melaka holds golden opportunity and MNC is certain that this alliance will contribute positively to its bottom line,
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given that online leasing or short-term rental service is the newest in-trend services that is sought after and the potential is huge.
• Since 2009, Melaka has welcomed 8.91 million tourists and the number has increased to 16.28 million in 2016, which resulted in massive demand for rooms in the state. Statistics in 2016 proved tourists per day could reach as high as 44,500 persons, whereas room supplies are only at 19,000 rooms per day.
Higher international arrivals benefit local theme parks (The Malaysian Reserve, 15th January 2018)
• Malaysian theme parks saw an increase in the number of visitors last year, driven by higher inbound arrivals at the country’s 39 airports.
• The 49.4 million international arrivals in 2017 have been a boon for local theme park operators helping to cushion the softer sentiment in the domestic market.
• Sunway Malls and Theme Parks CEO said both Sunway Lagoon and Lost World of Tambun recorded an incremental growth in visitor-ship in 2017, with 1.6 million visitors and 1.1 million visitors respectively.
• International visitors, particularly from the Middle Eastern countries, India, China, Singapore and Indonesia, make up 60% of the visitors profile for Sunway Lagoon, while Lost World of Tambun in Ipoh is popular among domestic visitors.
• A large population base and a burgeoning middle-class has resulted in a theme park boom in Asia over the last five years.
• Malaysia, poised to become the theme park capital in the Asean region, currently has over 20 theme parks and water parks with more expected by 2020 — including the world’s first Twentieth Century Fox Studios and a Ubisoft video game theme park.
• Themed Attractions Resorts and Hotels Sdn Bhd (TAR&H), the tourism subsidiary of sovereign fund Khazanah Nasional Bhd, said Malaysia’s young population and fast economic growth have allowed the attractions market to expand rapidly in recent years.
• However, the operator of Legoland Malaysia said each theme park must have a targeted marketing strategy and product development to encourage return visitors and generate a sustainable income for the industry.
• The rise of many more theme parks and attraction offerings around the country, will help increase inbound tourists and contribute to a steady rise in local visitors.
• The industry outlook for 2018 remains bright as there is a healthy demand for theme parks.
• To unlock the potential of the industry, growing international visitor-ship, affordable prices and a holistic approach are needed to compete with other regional peers.
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RM46mil project in Melaka to include 2.5km cable car line and theme park (The Star, 19th January 2018)
• Melaka state will get its first cable car as well as a theme park by the end of this year.
• The project, called “Seven Mini Wonders”, cost RM46 million with the cable car running across the Marina in Pulau Melaka to Klebang. The 2.5km cable car line is proposed to run overhead at certain busy locations overlooking the Straits of Malacca.
• The cable car project will also be linked to various other attractions along Melaka River such as the theme park with roller-coaster rides and pirate ship, among others.
• The theme park will be strategically located and the whole project aims to attract even more tourists to the state.
ESCAPE appoints events consultant to enhance services (The Star, 19th January 2018)
• Fans of Penang’s rave theme park in Teluk Bahang, ESCAPE, can expect plenty more good times in the park with the appointment of Maverick Media Productions as the park’s special events consultant.
• The consultant’s role includes promoting the park facilities to factories and corporate companies for group events, liaising with groups on their event needs and providing support services to them. The company is also tasked with creating on-site events for the park’s walk-in guests to enjoy activities such as Social Media Splash, Escape Pool Party, Escape Zumba Fest and many more.
• The park, which is a twin offering of ESCAPE Adventureplay and Waterplay, opened in 2012 and last November, respectively.
• ESCAPE Waterplay being the newest water park in Malaysia will be a big draw for Penang. The park can accommodate up to 5,000 visitors at a time.
• The theme park expects group businesses to make up about 30% of the park’s visitors compared to 10% now.
Xiamen Airlines makes inaugural Beijing-KK flight (The Star, 16th January 2018)
• Chinese tourist arrivals in Sabah will be boosted as Xiamen Airlines has opened the state to the northern China market with its inaugural direct flight from Beijing to Kota Kinabalu.
• The airline made Kota Kinabalu its first international destination from Beijing and expects more tourists from the city and northern China to travel to Sabah, in addition to those from the southern and central parts of the country.
• Xiamen Airlines has been operating direct flights from Fuzhou in central China to Kota Kinabalu since January 2017, with an average 80% load on their Boeing 737-800 aircraft.
• About 40 chartered flights from China are expected over the next three months.
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• Sabah had 3.65 million Chinese visitors last year, a record increase of 430,000 visitors or more than 14% compared to 2016. The value of tourism receipts was estimated as RM7.7 billion.
(J) INSTITUTION
Ekuinas sells Tenby Education Group (theedgemarkets.com, 17th January 2018)
• Ekuiti Nasional Bhd (Ekuinas), a government-linked private equity fund management company, has sold its 100% shares of Tenby Education Group to International Schools Partnership (ISP). However, it did not disclose pricing details.
• The sale marks Ekuinas’ eighth divestment, bringing total realisation proceeds to more than RM1 billion, including divestment of its 42.3% stake in Icon Offshore Bhd last year.
• Established in Ipoh in 1960, Tenby is an education group in Malaysia offering private national and international curricular across six campuses in Ipoh, Penang, Miri, Setia Alam, Johor Baru and Semenyih.
• Via its investment in Tenby, Ekuinas said it has undertaken a few initiatives to aggressively grow Tenby’s revenue and earnings, such as increasing student numbers from about 4,600 to over 5,000, and driving expansion through the opening of Tenby Ecohill in 2016 and Tenby Tropicana Aman, which is scheduled for 2018.
• ISP was founded by a team of experienced school operators with both educational and commercial expertise, managing and providing education to 16,000 students in Pre-K-13 schools across Europe, North America, Central America and the Middle East.
• With Tenby, ISP's portfolio of schools will increase to 25.
• Last week, Ekuinas had announced the disposal of its entire stake in APIIT Education Group for an enterprise value of RM725 million.
• The new owners of APIIT Group are joint-venture (JV) vehicles owned by the existing key management team of APIIT Group and KV Asia Capital — a private equity firm that invests in mid-sized companies in Southeast Asia.
• APIIT Group comprises the Asia Pacific Schools (APS), Asia Pacific University of Technology & Innovation (APU) and Asia Pacific Institute of Information Technology (APIIT).
• With the disposals of Tenby and APIIT Group, ILMU Education Group Sdn Bhd is now left with three education brands, including Unitar International University, Cosmopoint College, and Kuala Lumpur Metropolitan University College — also parked under Cosmopoint.
• Ekuinas is reportedly planning to shut down ILMU by the end of 2017, after the sale of its education assets.
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JM Education targets listing on LEAP Market (The Star, 17th January 2018)
• Education provider JM Education Group Bhd aims to be the third listing on the Leading Entrepreneur Accelerator Platform (LEAP) Market, pending approval from Bursa Securities.
• The group is primarily involved in the provision of educational counselling and student placement services. It also offers technical and vocational education and training (TVET) services through Miraj Academy in Kuala Lumpur.
• Based on its 2016 financial results, overseas markets contribute 76.5% of its revenue while services for the local market contribute 5.7%, and the local TVET segment contributes the remaining 17.8%.
Doctor2U aims Oceania market (The Malaysian Reserve, 17th January 2018)
• Local online platform for on-demand healthcare service, Doctor2U plans to expand its mobile medical services to the Oceania countries.
• As part of the plan, the mobile application is expected to be launched in Australia in the third quarter of 2018 (3Q18).
• The company has successfully developed a customer base in Malaysia with a 70% mobile penetration rate, and has a market presence in the Philippines, China, Singapore and Indonesia through a collaboration with the Philippines- based insurance company, Maxicare Healthcare Corp.
• Meanwhile, Doctor2U has entered into a tripartite collaboration between Prudential Assurance Malaysia Bhd (PAMB), Prudential BSN Takaful Bhd (PruBSN).
• A digital arm for local private healthcare provider, BP Healthcare Group, Doctor2U currently has 450,000 mobile downloads and 4,000 daily active users in Malaysia. Doctor2U had also recorded an eight-figure sales revenue last year.
• BP Healthcare has more than 85 medical centres all over Malaysia.
• In July 2017, Doctor2U added a new feature that allows users to request for an ambulance service that operates similarly as the existing ride-hailing service.
• For the ambulance service, Doctor2U is partnering a private ambulance company, First Ambulance Services Sdn Bhd, which allocates 20 vehicles for the service.
• At present, Doctor2U has seven main services, namely the doctor’s home visit, ambulance service, medication delivery, video consultation, electronic medical record, free medical live chat and e-commerce.
• Launched in October 2015, Doctor2U has partnered 1,500 licensed medical officers, which account for 85% of general practitioners and 15% of specialists.
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Mexter’s healthcare business takes off (The Star, 20th January 2018)
• From the time Lim Yin Chow, the co-founder and owner of HSC Medical Centre, took over a controlling stake in low-profile IT firm Mexter Technology Bhd last March, the market has been watching its developments.
• HSC, a notable diagnostic, heart and medical centre in the city, reported an annual profit of more than RM60 million in 2014.
• Lim is reported to have divested his stake in HSC in early 2016.
• On March 1, Mexter’s first mother-and-child centre will open in the affluent suburb of Taman Tun Dr Ismail (TTDI) in Kuala Lumpur. Called the “LYC Mother & Child Centre”, it will be located at levels two and three of the podium block in Plaza VADS, TTDI. The centre will have a capacity of 33 rooms.
• Mexter has chosen mother-and-child-related healthcare services as its maiden focus in the healthcare segment as Malaysia has a relatively young demographic, which makes this sub-segment an attractive business proposition with good long-term viability.
• Confinement care is a traditional post-natal practice which is aimed at helping new mothers recover from the rigours of pregnancy, labour and birth. The main objective of a postpartum care centre is to ensure that the mother and baby are healthy, and the mother is equipped with all the information about motherhood and the baby is looked after during the mother’s recovery period.
• Another reason for this business - new mothers in urban areas are finding it increasingly difficult to source suitable confinement ladies.
• This industry is growing with a number of existing and new mother-and-child centres being opened mostly in the Klang Valley.
• Mexter’s healthcare division is setting up a ‘five-star’ confinement centre targeting urbanites in the city and with their first facility of 33 beds, lays claim to being the largest in the local market.
• Other aspects of its facility include a wellness spa, hair salon and a partnership with local wellness partner Tanamera for the provision of pre- and post-natal massages.
• Mexter will be spending RM6 million on renovation costs to create a high-end centre for its patients.
• Another key differentiating factor is that Mexter has engaged an operations consultant from Taiwan, Dr Cheng Chih-Chieh – founder of Taiwan’s Darling Baby Postpartum Nursing Centre, who will help oversee Mexter’s centre and expansion plans over the next five years.
• Mexter plans to set up five to seven sizeable portpartum centres in Malaysia with a total of 100 to 200 beds in the Klang Valley in the near future. The company is also looking to venture into medical tourism through potential mergers and acquisitions.
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(K) INFRASTRUCTURE
Three local consortiums, one Chinese consortium submit tenders for MRT Circle Line (theedgemarkets.com, 19th January 2018)
• Three Malaysian consortiums and one Chinese consortium have submitted their turnkey tenders with financing for the MRT Circle Line or MRT Line 3.
• According to Mass Rapid Transit Corp Sdn Bhd (MRT Corp), the consortiums are the Sapura-TIEC consortium, the MMC-Gamuda-George Kent joint venture (JV), the Pacific-Mudajaya-JEC consortium and the China Communications Construction Co Ltd-China Communications Construction Co (M) Sdn Bhd JV.
• The tender submission closed yesterday and the contract for the MRT Circle Line is tentatively set to be awarded within the first quarter of 2018.
• An evaluation will be made by MRT Corp based on the best evaluated tender from the three main evaluation criteria: technical, financial standing and the financing package. A recommendation will then be submitted to the ministry of finance for decision and approval.
• To ensure strong local participation in the project, MRT Corp is enforcing a requirement for Malaysian and bumiputera participation in the project as one of the conditions of the turnkey contract.
• The MRT Circle Line is expected to be 40km in length, of which 32km will be underground with 26 stations planned along the alignment. The line, which will run around the periphery of Kuala Lumpur city centre, will intersect with Klang Valley's entire urban rail network, expanding its coverage significantly and providing greater mobility to commuters.
First phase of Iskandar Malaysia BRT to be ready by 2021 (the Star, 19th January 2018)
• Work on the Iskandar Malaysia Bus Rapid Transit (IMBRT) is expected to start in the first quarter of next year and phase one of the project is slated for completion by mid-2021.
• The focus this year will be on development planning, land acquisitions, designs of the stations and public engagements.
• The Federal Government has allocated RM1 billion while RM1.6 billion will come from the private sector.
• The project will cover almost 90% of Iskandar Malaysia with over 300km routes, of which 50km were trunk routes and the remaining were feeder routes.
• Globally, 125 cities have implemented BRT, while 121 more are either in the construction or planning stages of the project.
• The IMBRT is to cater to the transportation needs of the population in Iskandar Malaysia which is expected to reach three million in 2025, from 1.5 million when Iskandar Malaysia was established in 2006.
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Malaysia-Singapore ink agreement on RTS (Bernama, 16th January 2018)
• Malaysia and Singapore signed a bilateral agreement on the 4-km Rapid Transit System (RTS) Link between Johor Bahru and Singapore at the 8th Singapore- Malaysia Leaders’ Retreat today.
• The cross-border MRT system, first announced in 2010, will run from Bukit Chagar in Johor to Woodlands North station in Singapore.
• The RTS Link will be able to carry up to 10,000 passengers per hour in each direction, once ready in 2024.
• The RTS is expected to shorten the travel period between both countries to 30 minutes, from more than one hour currently.
JB-S’pore rapid transit system to start by Dec 31, 2024 (EdgeProp.my, 16th January 2018)
• The Johor Bahru-Singapore rapid transit system (RTS) link passenger service is targeted to commence operation by December 31, 2024.
• The cross-border rail agreement — the second such deal by both countries in as many years, following the Kuala Lumpur-Singapore high speed rail (HSR) one — which was inked today records the technical, safety and security requirements, commercial, financing, procurement and regulatory frameworks, as well as customs, immigration and quarantine (CIQ) arrangements for the RTS link.
• When completed, the RTS link will improve connectivity, deepen people-to- people ties and stimulate economic growth in Singapore and Johor. To facilitate commuter flow, there will be co-located CIQ arrangements similar to the HSR at each RTS link station in Bukit Chagar (Malaysia) and Woodlands North (Singapore), hence passengers will only need to undergo CIQ clearance at their point of departure.
• The RTS link stations will be well-integrated within the local public transport networks of both countries.
• The RTS link will be operated by a joint-venture company by SMRT Corp Ltd and Prasarana Malaysia Bhd for a concession period of 30 years.
• The service will see trains arriving every eight minutes on average, while during peak hours this will be sped up to four minutes on average.
• The link will initially comprise five trains and ultimately increase to seven, ferrying up to 10,000 passengers per hour.
• Following the commencement of the RTS link passenger service, all KTMB railway services in Singapore will eventually stop within six months.
Japan HSR equity offer to Malaysia, Singapore companies (EdgeProp.my, 15th January 2018)
• Japanese firms will offer substantial equity participation to Malaysian and Singapore companies, while setting up cooperation in a myriad of areas, if they
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are successful in bidding for the Kuala Lumpur-Singapore High-Speed Rail (HSR) project.
• The HSR will not just create business and job opportunities for locals, but will also be an impetus for the nationwide growth of Malaysia and Singapore. It will trigger a boom for Malaysian and Singaporean companies, including small and medium enterprises.
• A set of companies to be established in Malaysia and Singapore will have the joint participation of both Japanese and local industries.
• Japan's HSR bid will come with the best technology, cost effectiveness and financial package.
• Other bids are expected to come from China, South Korea and France for the KL-Singapore HSR project worth between RM50 billion and RM60 billion.
• Meanwhile, Tokyo will reportedly provide financial backing to Japan’s 10- company consortium for its bid for the KL-Singapore HSR.
• The public-private fund Japan Overseas Infrastructure Investment Corp for Transport and Urban Development is expected to support the consortium seeking to win tenders for the project.
• Japan plans to submit its proposal for the project by June.
YTL Corp’s KL-Singapore HSR operating company bid looks promising (The Edge Financial Daily, 18th January 2018)
• YTL Corp Bhd has good prospects to bid for the Kuala Lumpur-Singapore High- Speed Rail’s (HSR) operating company (OpCo) tender given its experience in the 45%-owned Express Rail Link Sdn Bhd (ERL) — the sole domestic HSR service concession built at only RM35 million per km — arguably the lowest cost in the region.
• OpCo is one of the three main components of the Kuala Lumpur-Singapore HSR’s structure — project delivery partner (PDP) and assets company (AssetsCo) being the other two.
• YTL Corp has now emerged as one of the five known JV/consortiums that are bidding for the PDP, OpCo, and AssetsCo tenders for the Kuala Lumpur- Singapore HSR project.
• While it remains to be seen if YTL Corp or 45%-owned ERL would be looking to rake in foreign partners for the Kuala Lumpur-Singapore HSR tenders, the group is expected to be leveraging its existing domestic partnerships. ERL is currently 45% owned by YTL Corp, 36% by Lembaga Tabung Haji, 10% by SIPP Rail Sdn Bhd, and 9% by Trisilco Equity.
• Even excluding Kuala Lumpur-Singapore HSR, the group is targeting a significant jump in outstanding order book of up to RM12 billion (RM400 million currently). The group had reportedly secured the RM8.9 billion Gemas-Johor Bahru rail project contract (via a JV with SIPP Rail).
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ECRL set to transform the East Coast (The Star / Bernama, 19th January 2018)
• The RM55 billion East Coast Rail Line (ECRL) project, covering 688km from Port Klang in Selangor to Tumpat in Kelantan, is set to change the face of the East Coast.
• The mega project, to be completed in 2024, is seen not only to be able to change the economic landscape of East Coast states, including Pahang, and spur development, but also change the social structure, especially of the rural areas.
• The transformation project will traverse the smaller towns in Pahang like Bentong, Mentakab, Maran, Gambang, Kota SAS, Kuantan Port City I and II, and Cherating, and this augurs in attracting investment to this part of the country.
HSS associate gets China letter for ECRL job (The Star, 18th January 2018)
• HSS Engineers Bhd’s associate company, HSS Integrated Sdn Bhd (HSSI), has accepted a letter of appointment from China Communications Construction (ECRL) Sdn Bhd appointing HSSI as the consultant to provide detail design and shop drawing design consultancy services for infrastructure works for the East Coast Rail Link (ECRL) from KM0 to KM213.5 of the ECRL contract.
• The contract with a value of RM25 million will commence upon the acceptance of the letter of appointment and is expected to be completed within the second quarter of 2026.
(L) ISKANDAR MALAYSIA
Sunway Citrine Hub to steer Lakeview Precint growth (New Straits Times, 19th January 2018)
• Sunway Citrine Hub, the central business hub for Lakeview Precinct township, is set to steer economic growth in the area.
• The hub, spanning 6,596.12 sq m, houses 51 retail units and 167 office suites for the surrounding community. The integrated development is also located near the 8.09-hectare Emerald Lake park.
• To date, all 167 office suites have been taken up and occupied while the 328 serviced residences have been completed and ready for occupancy.
• The recently launched Jaya Grocer supermarket at the Sunway Citrine Hub was the grocer’s 23rd branch in the country.
Capital World launches Malaysia’s biggest indoor theme park (EdgeProp.my, 15th January 2018)
• Malaysian developer Capital World Ltd, a group listed on Singapore’s Catalist board, has launched the country’s biggest indoor theme park concept at its Capital City development in Johor.
• The group has signed leases with international and local brands of F&B and consumer products, among others, such as Starbucks, KFC, Pizza Hut, Old
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Town White Coffee, The Teh Tarik Place, Moonlight Cake House, Guardian Pharmacy, Caring Pharmacy, F.O.S and Owndays.
• The indoor theme park is expected to draw greater footfall to the mall as Capital City will be transformed into a one-stop entertainment hub and shopping haven in the heart of Johor Bahru.
• Capital City is poised to be one of the key tourist attractions in Johor with its offering of the 315-room Hilton Garden Inn, 630 units of hotel-style serviced suites and 690 units of serviced apartments.
Johor aiming to become high-value tourist destination (The Star, 20th January 2018)
• Johor wants to attract more tourists with high spending power from countries in the region instead of just day trippers.
• Under the Johor Tourism Master Plan 2014-2023, the state together with all stakeholders in the tourism sector, will work to achieve the target.
• The state is set to attract more domestic and foreign visitors with more indoor and outdoor theme parks to be opened in the state within the next few years.
• Johor has 10 indoor and outdoor theme parks, making it the state with the most theme parks in the country. The theme parks have positioned Johor as one of the leading regional players that offer family-based entertainment for children and young adults.
• Figures from the Statistics Department showed that Johor received 7.4 million domestic tourists in 2016, which was the highest in the country.
• Meanwhile, statistics from Tourism Malaysia placed Johor in the third spot in terms of attracting foreign tourists in 2016, and that the number of tourist arrivals had increased significantly from 3.9 million in 2012 to 10 million tourists, comprising locals and foreigners, in 2016.
• Tourism Malaysia will increase its efforts to attract more tourists from Australia, China, India and Thailand.
• On a separate note, the RM50 million Sea Life Malaysia @ Legoland Malaysia Resort which had its ground-breaking ceremony recently is expected to open in the fourth quarter of this year.
• Sea Life is the world’s largest aquarium brand located next to the existing resort. The double-storey aquarium on the 2,213 sq m land will have more than 25 display tanks in 11 habitat zones, featuring thousands of sea creatures. The habitat zones will include shoaling ring, tropical rainforest, ocean tunnel and tropical stingray bay.
Mah Sing partners EduCity to provide fully furnished accommodation (theedgemarkets.com, 17th January 2018)
• Mah Sing Group Bhd has teamed up with EduCity Iskandar Malaysia Sdn Bhd (EduCity), a wholly-owned subsidiary of Iskandar Investment Sdn Bhd, to provide
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student accommodation at Phase 2 of Mah Sing's Meridin@MediniExecutive Suites in Iskandar Puteri, Johor.
• Mah Sing today inked a Memorandum of Understanding (MoU) with Educity to offer 183 fully-furnished apartment units, which would cater to 370 students, out of the 583 available units.
• Students will have the option of choosing a studio unit or twin-sharing studio unit, which have built-up spaces ranging from 341 sq ft to 603 sq ft. The units come with induction cooker, heated shower, air conditioner, lightings, mattress, wardrobe, study tables, chairs as well as fridge. The starting price will from RM850 per month per student.
• The Meridin@Medini project is located about 3.6km from EduCity and will be the first external student accommodation provider for Iskandar Malaysia’s education hub. Mah Sing will provide two-way bus shuttle services between Meridin@Medini and EduCity for students staying at its development.
• The partnership with EduCity is an on-going one because there is continuous inflow of students to study at the education hub.
• Phase 2 of Meridin@Medini features Meridin Executive Suites, Meridin Walk Lifestyle Mall and two blocks of hotel suites namely Ramada Meridin and Ramada Encore Meridin.
• The project has seen a take-up rate of 60% and the group targets to hand over the keys to purchasers by the first quarter of 2018.
• EduCity comprises universities and institutions of higher education, research and development centres, accommodation and recreational facilities.
• Among the institutions located at EduCity are Raffles University Iskandar, University of Southampton, Netherlands Maritime Institute of Technology, Newcastle University Medicine Malaysia and Management Development Institute of Singapore.
Forest City developer signs MoU with schools (The Star, 20th January 2018)
• The master developer of the multi-billion-ringgit Forest City project, Country Garden Pacificview Sdn Bhd (CGPV), is partnering two educational institutions to produce more marketable graduates.
• CGPV recently signed a memorandum of understanding (MoU) on the matter with China-based Guangdong Country Garden Polytechnic and Southern University College from Johor Baru. Guangdong Country Garden Polytechnic in Qingyuan city started in 2014. It is the first private vocational college set up by the Country Garden Group offering free education and accommodation for poor students. It has seven programmes in hotel management, construction and pre-school education. Southern University College, set up in 1990, offers 57 academic programmes of which 42 are accredited by the Malaysian Qualifications Agency and nine under the School of Professional and Continuing Education programmes.
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• The signing ceremony took place in Guangdong, China.
• The MoU aimed to spur talent grooming in both countries.
• Forest City, South-East Asia’s largest mixed-use green development in Iskandar Malaysia has a committed investment of about US$100 billion (RM395.9 billion).
• CGPV is a joint-venture between Country Garden which holds 60% equity and Esplanade 88 Danga Bay Sdn Bhd, an associated company of Kumpulan Prasarana Rakyat Johor.
Johor MB: RTS will boost cross-border economy between Malaysia and Singapore (The Star, 20th January 2018)
• The Johor Baru-Singapore Rapid Transit System (RTS), which is expected to be operational in December 2024, will boost cross-border economy.
• The RTS project will connect Bukit Chagar in Johor Baru and the planned Woodlands North MRT station, which is part of the upcoming Thomson-East Coast (TEL) Line in Singapore.
(M) OTHERS
DBKL: Register with us if you rent your properties out for short stays (EdgeProp.my, 19th January 2018)
• Owners or operators of residential properties leasing them out for short-term stays on platforms such as AirBnB will have to register with Kuala Lumpur City Hall (DBKL).
• DBKL is proactively registering and studying the feasibility of short-term leases in various parts of Kuala Lumpur to ensure that owners and operators can rent their properties out legally.
• Short-term rental is widely marketed through websites such as AirBnB, HomeAway, as well as iBilik, and it may cause disturbance to other units and contribute to safety and cleanliness problems.
• The registration programme is done so that the Companies Commission of Malaysia (SSM) can conduct studies on the operators who rent out their properties for short-term stays legally and be placed under the supervision of DBKL.
• Failure to register will be considered as an offence, and action will be taken by DBKL.
• The registration programme has begun and will run throughout the year, with registration open to individuals, agents, or companies involved in short-term stays without limitations on citizenship.
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Another 55 owners of The Arc@Cyberjaya units to sue Meda Inc's Maju Puncakbumi over GRR scheme ([email protected], 17th January 2018)
• Another group of The Arc @ Cyberjaya project owners is initiating a legal suit against Meda Inc Bhd's wholly owned subsidiary Maju Puncakbumi Sdn Bhd claiming RM1.8 million in outstanding rentals under a guaranteed rental return scheme (GRR).
• This follows the success of a suit by 137 owners of the same project last month, after the Shah Alam High Court ruled in favour of their class-action lawsuit.
• Maju Puncakbumi is appealing to the Court of Appeal and a hearing on stay application is set for January 29.
• Meanwhile, for the latest legal action, the 55 owners have no other avenue but to file a suit claiming lack of response from the developer, which was served a notice of demand on December 11, 2017.
Comfortable living quarters for construction workers (The Malaysian Reserve, 19th January 2018)
• Three out of eight centralised labour quarters (CLQs) set up by the government are ready to house construction workers throughout the year. The other five will be completed by the fourth quarter of 2020.
• This move by the government, set under the quality, safety and professionalism strategic thrust for the Construction Industry Transformation Programme, is to drive improvements in the living conditions of the construction workers.
• The Construction Industry Development Board (CIDB) via its subsidiary — the Construction Labour Exchange Bhd (CLAB) — launched its first CLQ in Shah Alam yesterday.
• CLAB’s gated-and-guarded self-sustaining residential facilities furnished with all the amenities needed for the safety and comfort of the workers will be the first of its kind in the country.
• The building, which is located in Shah Alam, was previously utilised by Mass Rapid Transit (MRT) Corp Sdn Bhd during the construction of the MRT line.
• The 144-room lodgings which sleep six per room will be housing 864 workers — all come equipped with a surau, a cafeteria, kitchen, sport facilities, an assembly area, a sun- dry and laundry shop, as well as a sick bay. These facilities are especially conducive for construction companies.
• The CLQ is targeted at factories located within a 10km or 20km radius.
• The rental rate will be minimal as long as it covers the operational cost.
• CLAB is currently in talks with Penang Development Corp and Putrajaya Corp to oversee the construction and operations of two new CLQs located at Batu Kawan, Penang, and Putrajaya this year.
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Labuan IBFC to unveil transformational plan (New Straits Times / Bernama, 17th January 2018)
• The Labuan International Business and Financial Centre’s (Labuan IBFC) Transformational Plan is designed to turn Labuan into a well-integrated regional economic hub to better serve the business, investment and intermediation needs of the region, including East the Malaysian and Asian markets.
• The Transformational Plan is part of a chapter in the Labuan Development Blueprint that is scheduled to be launched by the Prime Minister tomorrow.
• Labuan Financial Services Authority (Labuan FSA) will broaden Labuan IBFC’s business base. There will be greater focus on developing emerging niche segments of the financial sector that can be expanded to become key areas of growth for Labuan IBFC.
• As the subset of the whole Labuan Development Blueprint 2030, the Labuan IBFC’s Transformational Plan reflects and facilitates the government’s commitment to elevate the economic stature of Labuan to become an integral growth component of the nation’s economy.
• The plan also focuses on the integration of the financial sector with the local economy, as well as that of the nation’s.
All domestic economic sector to grow in 2018: SERC (New Straits Times, 17th January 2018)
• Socio-Economic Research Centre (SERC) expects all local economic sectors across the board to grow in 2018 albeit at a slower pace.
• The service, manufacturing and construction sectors will continue to lead.
• The drivers of services are steady domestic spending, logistics services and demands from electronics and electrical (E&E), refined petroleum and wood products industries. Domestic-market oriented demand such as construction- related building materials, food products and transport equipment will also push the growth of the service sector.
• The on-going civil engineering infrastructure projects such as the East Coast Rail Line (ECRL), MRT Sungai Buloh-Serdang-Putrajaya (SSP) line, Electrified Double-Track Gemas-Johore Bahru, Setiawangsa-Pantai Expressway (SPE) and Pan Borneo Highway will support the construction sector.
• SERC also expects the construction of residential and affordable housing programs to continue but a slowdown in commercial and retail space development due to property overhang in 2018.
• The country's gross domestic product (GDP) growth is expected to stabilise to 5.1 per cent this year coming from a high base of 5.8 per cent last year.
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Labour force participation and unemployment rates drop in November ([email protected], 15th January 2018)
• Labour force participation and unemployment rates for the month of November dropped a percentage point compared with October 2017, according to Department of Statistics.
• Labour force participation rate stood at 67.9% for the month, while unemployment rate was at 3.3%. The labour force stood at 15.04 million, while unemployment was at 505,100.
• Those who are outside the labour force, comprising of housewives, students (including those pursuing further studies), retired, disabled and not interested to work, was up 0.1% in November, compared with October 2017, or 7.12 million in absolute numbers.
• Year-on-year showed that labour force participation rate in November 2017 increased by 0.2 percentage point. This was as year-on-year unemployment rate fell 0.1 percentage points as compared with November 2016.
• On a seasonally adjusted month-on-month basis, the unemployment rate for November 2017 decreased 0.1 percentage point to 3.4%.
KL much more affordable for rental accommodation, Singapore 8th most expensive (NST Business, 16th January 2018)
• Kuala Lumpur continues to fall out of Asia’s top 40 list of most expensive places for rental accommodation, showing no signs of stopping.
• According to the latest Accommodation Survey by ECA International (ECA), Kuala Lumpur is now more affordable than places such as Colombo, Sri Lanka, and Kathmandu, Nepal.
• The property market in Kuala Lumpur has suffered from high levels of speculation over the past couple of years and high levels of new construction. The market is oversupplied, and landlords have to compete significantly on price to secure tenants.
• The domestic economy has not been strong enough to bolster demand for the excess of higher-end properties on the market. However, a slowdown in property construction and cooling measures from the Malaysian central bank should see the market stabilise in future years.
• Meanwhile, Singapore is now the eighth most expensive location in Asia for rental accommodation, down one place from last year, and down from fourth in 2016.
• This is due to a slowing of economic growth and a net reduction in inbound assignments, exacerbating the surplus of higher-end properties on the market that would normally attract expatriates. The oversupply has reduced average rent levels in Singapore for the past three years.
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• Rental prices for an unfurnished, mid-market, three-bedroom apartment in areas commonly inhabited by international executives in Singapore average US$4,337 per month – over US$175 cheaper per month than a year previously.
• Elsewhere in the region, accommodation costs have been on the rise. • Hong Kong remains the most expensive location in Asia for rental accommodation. Rental prices for an unfurnished, mid-market, three-bedroom apartment in areas commonly inhabited by international executives in Hong Kong average US$10,461 per month.
(N) OVERSEAS
Malaysia, Singapore successfully delivers Marina One, DUO (NST Business, 15th January 2018)
• Malaysia and Singapore mark the successful delivery of two iconic joint development projects in Singapore, with the official opening of Marina One and DUO.
• Khazanah Nasional Bhd and Temasek Holdings (Private) Ltd yesterday announced the completion and official opening of Marina One and DUO, worth a combined S$11 billion (RM33 billion) in gross development value (GDV).
• The project is a result of mutually beneficial cooperation between Malaysia and Singapore arising from the two countries’ strong and longstanding bilateral relationship.
• The development of Marina One and DUO, located in Marina South and Ophir- Rochor respectively, was undertaken by M+S Pte Ltd (M+S), which is owned 60:40 by Khazanah and Temasek respectively.
• M+S was established in 2011 to develop land parcels in the Marina South and Ophir-Rochor areas, following the full implementation of the Points of Agreement (POA) between Malaysia and Singapore in 2011.
• In addition, Khazanah and Temasek are undertaking joint developments in Iskandar Malaysia through Pulau Indah Ventures Sdn Bhd, a 50:50 joint venture that is developing the Afiniti Medini and Avira integrated wellness projects.
• Afiniti Medini was completed in 2016.
• Marina One and DUO are integrated developments with office, retail and residential components, and have won multiple awards and recognition including for sustainability and environmentally-friendly designs.
• Marina One and DUO are well-positioned to tap into the continued growth of the property and commercial sectors, and have attracted strong market interest.
• The two developments have recorded significant take-up rates for their respective residential and commercial components, securing key anchor tenants including global multinational companies.
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MTD Capital to build RM1.77b ‘Putrajaya’ in the Philippines (EdgeProp.my, 20th January 2018)
• Infrastructure group MTD Capital Bhd will be developing a national government administrative centre (NGAC) modelled after Putrajaya on 60-hectare of land at New Clark City in the Philippines.
• The ground-breaking ceremony for the project which will cost PHP22.7 billion (RM1.77 billion) is expected to take place on Tuesday (January 23).
• The NGAC will comprise satellite offices and major administrative offices of various executive departments and agencies, as well as a sports complex, which features an athletics stadium and aquatic centre that will likely be the venue for the upcoming 2019 Southeast Asian Games.
• The Bases Conversion and Development Authority (BCDA), the landowner will jointly develop the NGAC with MTD Capital on a 10:90 basis, representing the land value and the cost of the development, respectively.
• The first phase of the development, slated for completion by the end of next year, will cover 40 hectares and cost PHP12.7 billion. It will comprise two 7-storey government buildings, an integrated operations centre, the aquatic centre, athletics stadium, athlete’s village, government housing and parks, among others.
• Meanwhile, construction of phase 2 is targeted to begin next year and complete by 2022, with the 20-hectare phase featuring more government office buildings, housing, parks and facilities such as retail centres.
• The BCDA’s decision to build the NGAC in New Clark City, which is 80km away from Manila, was prompted by the need to reduce traffic congestion and overpopulation in the metropolitan area, as well as to catalyse economic development outside the capital city.
Berjaya Land unit submits arbitration notice to recover sum from China mall sale (theedgemarkets.com, 19th January 2018)
• Berjaya Land Bhd's 51%-owned unit Berjaya (China) Great Mall Co Ltd (GMOC) today submitted a notice of arbitration against Beijing SkyOcean International Holdings Ltd to seek recovery of an outstanding payment of 974.07 million renminbi (RM598.97 million).
• GMOC had completed the disposal of the Berjaya (China) Great Mall Recreation Centre in China to Beijing SkyOcean in December 2016 for 2.08 billion renminbi.
• Under the terms of payment, the purchaser paid 1.065 billion renminbi as at the completion date and was supposed to pay the balance 1.015 billion renminbi by November 2017, which has not been remitted as at December last year.
• Subsequently, GMOC sought legal advice and issued a notice of demand to Beijing SkyOcean and its guarantors to pay the outstanding amount and accrued late payment interest within three days of the notice.
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• The company has yet to receive the payment for the remaining adjusted cash consideration of 974.07 million renminbi.
• Berjaya Land had proposed the disposal in December 2015, when the mall was still under construction to raise cash to repay borrowings, creditors, contractors and to defray taxes on sale of the mall and incidental expenses.
T7 Global receives shareholders' approval for RM31m property disposal in Birmingham (NST Business, 15th January 2018)
• T7 Global Bhd, an upstream and downstream oil and gas service provider, obtained shareholders' approval to dispose its property in Birmingham for £5.75 million (RM31.45 million) in cash.
• The disposal is in-line with the Group’s current corporate planning to focus in current business and new ventures.
EWI achieves cumulative sales of RM7.7b from UK and Australian projects (theedgemarkets.com, 16th January 2018)
• EcoWorld International Bhd (EWI) has achieved cumulative sales of RM7.7 billion from property development projects in the UK and Australia as at October 31, 2017.
• They comprise RM7.57 billion exchanged contracts and reserved units worth RM147 million.
• Upon completion of the acquisition of a 70% equity stake in Be Living’s residential development business and the new project in Macquarie Park, EWI will have nine projects in the UK and three projects in Australia.
• The construction of all launched blocks is progressing well and the company is on track to achieve its maiden handover of two blocks within its London City Island Phase 2 project and one block of the Embassy Gardens Phase 2 project in the current financial year ending October 31, 2018.
• At the same time, EWI is expected to generate operating revenue upon handover of the above residential units in the same financial year.
• Separately, Bursa Securities has approved EWI’s application for a waiver from being classified as an affected listed issuer pursuant to Paragraph 8.03A(2)(b) of the listing requirements, which states a listed issuer may not have adequate level of operations when its business generates revenue representing 5% or less of its share capital, based on its latest annual financial statements.
• Bursa Securities has also approved a variation for EWI in respect of Paragraph 8.03A(7)(b)(i) of the listing requirements, which allows the group to include the revenue of its joint ventures proportionate to its holdings.
Creation of long-term asset ownership platform for Battersea power station (theedgemarkets.com. 18th January 2018)
• Sime Darby Property Bhd's 40% associate Battersea Project Holding Company Ltd has approved the proposed transaction involving The Power Station building.
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• The proposed transaction is to reorganise the ownership of The Battersea Power Station’s Commercial Property under Permodalan Nasional Bhd (PNB) and the Employees Provident Fund (EPF).
• The Power Station’s Commercial Property represents Phase 2 of the enlarged Battersea Power Station rejuvenation project.
• PNB and EPF have expressed their interest to explore the transaction following strong progress made to date under Phase 2 with over 90% of residential units having been pre-sold.
• An entire office space in the Power Station Building (approximately 470,000 sq ft) has been let to Apple.
• The proposed transaction will provide increased certainty of investment return to Sime Darby Property and S P Setia as development partners.
• The remainder development in Phases 3 to 7 of the Battersea Power Station is estimated to be completed in 2028.
• Residents have started to move in to Circus West, the first phase of the redevelopment of BPS, in early 2017. Circus West Village, the neighbourhood centre for Phase 1 of the development has seen more than 500,000 visitors since it was opened to the public.
• The Electric Boulevard (Phase 3), the main gateway to the entire development, will have 40 retail units, and 10 cafes and restaurants. Apart from 1,218 new homes, there will be hospitality and high-end amenities.
UK RICS house price gauge unexpectedly picks up from four-year low (The Star, 18th January 2018)
• A key gauge of British house prices unexpectedly picked up last month from its lowest level in more than four years, helped by a less negative tone in London and neighbouring areas.
• The Royal Institution of Chartered Surveyors (RICS) said on Thursday that its monthly house price index rose to +8 in December from zero in November, which had been its lowest reading since March 2013.
• British house price growth has slowed over the past year to between 2 and 5 percent, depending on the measure. This largely reflects weakness in London and surrounding areas, with bigger price rises in most of the rest of the United Kingdom.
• London's housing market has suffered since mid-2016, beset both by June 2016's Brexit vote which dented international investor demand, and a steep rise in purchase taxes for rental investments and property costing more than 1 million pounds.
• Weak wage growth and a jump in inflation since the Brexit vote have also squeezed potential home-buyers' spare income.
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• December's RICS index showed surveyors reported the biggest price fall over the past three months in London - but less of a decline than in previous months. Price growth almost everywhere else remained solid and in line with its recent average.
• Over the next 12 months, property prices are expected to rise everywhere except London, and expectations for sales over the coming year are more bullish in all regions.
SP Setia raises the bar with UNO Melbourne (The Star, 18th January 2018)
• SP Setia Bhd, which has a strong presence in this Australian city with its iconic projects, has raised the benchmark again with the impending Kuala Lumpur launch of UNO Melbourne residential and hotel tower project.
• The project, located along A’Beckett Street in the central business district (CBD), comprises 486 apartments and 256 hotel rooms.
• UNO Melbourne represents the latest property project by SP Setia following the successful launches of Fulton Lane, Parque, Maison Carnegie and Marque Prahran and Sapphire by the Gardens.
• The proposed concept for UNO Melbourne aims to produce a landmark development that addresses inner-city urban living in this evolving northern fringe CBD precinct.
• Even before the preview to be held on January 20 and January 21 at the Setia International Centre in Kuala Lumpur, SP Setia has received strong response from buyers.
• Construction of the 65-storey landmark mixed used development – which has a combined gross development value (GDV) of A$518 million (RM1.6 billion) – starts in the third quarter of 2018. It is targeted to be completed by the first quarter of 2021.
• The sizes of the apartments range from 548 sq ft for a one-bed, one-study unit to a three-bed and a study covering1,108 sq ft.
• With a price range from A$499,000 to A$1.45 million, UNO’s target market are owner occupiers, young families, young couples, investors, downsizers and offshore residents that frequent Melbourne, touted the world’s most liveable city.
• The facilities include a lobby and a concierge on the ground floor, a wellness club on level 40, sky lounge on level 64, secured car park, hotel amenities on level, a childcare centre on level two and hotel amenities on level nine.
Amcorp Properties JV to finalise first HK purchase by Q1 of 2018 (The Star, 18th January 2018)
• Amcorp Properties Bhd expects its Hong Kong joint venture, which focuses on en-bloc buildings in good locations, to decide on the first acquisition there by Q1 of 2018.
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• The JV, whose objective is to seek such property with value-add potential, expects the acquisition to be at HK$360 million (RM182 million).
• As for it on-going Sibujaya township development near Sibu airport, it would continue to develop the remaining land bank of over 622 acres over 10 years.
• Commenting on its UK operations, Amcorp said its Burlington Gate and Holland Park Villas, both high end residential developments with a gross development value (GDV) of £270 million and £611 million respectively, have now been physically completed. The units are in the midst of being delivered to buyers progressively since September 2017.
• The remaining premium units and penthouses for both projects with an estimated sales value of £198 million which are being released to the market will add to its results in the coming months.
• To recap, in May 2016, Amcorp and its strategic international partners completed the acquisition of Bankside Yards in Southbank, London.
• This project with a GDV in excess of £1 billion involves a comprehensive redevelopment scheme into a world class residential led mix development project with the existing planning permission being further refined for a total area close to 1.1 million square feet.
• As for its Kilmuir House, an apartment block in the heart of Belgravia, Amcorp said plans are to build a high end new built residential development.
• On its joint venture with Grosvenor in Spain, they had added four projects to its portfolio in Madrid. All these projects are planned for redevelopment into residential units and has a total estimated GDV of €145 million.
• Due to the improving market outlook and pipeline of deals, the group and its partner had on January 4 agreed to inject up to a further €15 million each to bring the equity of the fund to a total of up to €100 million.
China’s home prices rise in most cities in 6 months (The Malaysian Reserve, 19th January 2018)
• China home prices rose in the most cities in six months even as the government prolonged its campaign to curb property speculation.
• New-home prices, excluding government-subsidised housing, in December rose in 57 of 70 cities tracked by the government, compared to 50 in November, according to data from the National Bureau of Statistics. Prices fell in seven cities from the previous month and were unchanged in six.
• Chinese officials are trying to control home prices without triggering an excessive slump in the property industry, which is crucial to the economy. Soon after the easing of some local curbs in north western and central China drew public attention, the central government reiterated vows to clamp down on property speculation.
• Prices in second-tier cities rose the most in seven months, and the fastest in five months in third-tier towns. The provincial capital of Kunming in far-flung Yunnan
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led the gains, with housing prices climbing 2.6% from November, followed by a 2.2% gain in the southern city of Haikou.
• Prices in major cities declined slightly or stayed mostly flat. Prices dropped 0.3% in Guangzhou and 0.2% in Shenzhen, but edged up 0.3% in Shanghai.
Chinese demand drives construction boom in Cambodia (Reuters, 16th January 2018)
• The value of construction projects in Cambodia rose more than 22% to US$6.4 billion in 2017 from the previous year, according to newly released official figures that showed the impact of a boom driven by Chinese investors.
• The Ministry of Land Management, Urban Planning and Construction said it approved a total of 3,052 projects, covering more than 10 million sq m (108 million sq ft) last year.
• The high level of Chinese investment is evident from the skyscrapers that have shot up with apartments and condominiums in Phnom Penh, and the hotels and casinos being built to serve Chinese buyers in the resort city of Sihanoukville.
• China is by far the biggest foreign investor in Cambodia — accounting for some 30% of recorded investment in 2016, according to official figures.
• China's Prince Real Estate and Yue Tai Group were both scheduled to launch major projects in 2018. There is also a growing market for local buyers with condominium sales in the US$22,000 to US$90,000 range.
• Political turbulence last year had little impact on investment.
China's Wanda sells interests in high-profile London property project (The Star / Reuters, 17th January 2018)
• Dalian Wanda Group has agreed to sell its interests in the high-profile London luxury development project, One Nine Elms, for £59 million ($81 million), the latest in a string of asset sales that underscore financial strains hitting the Chinese conglomerate.
• Wanda bought the property in Nine Elms Lane on the south bank of London’s River Thames in 2013 to redevelop it into a hotel, residential, office and retail complex.
• The conglomerate, which has businesses that range from real estate to football and cinemas, had initially said it wanted to transfer ownership of some its overseas assets to its holding company as part of a restructuring, keeping them within the group.
• But the sale has instead gone to a unidentified third party – reportedly Guangzhou R&F Properties, a firm that has also stepped up to purchase other Wanda property assets.
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• Wanda Hotel Development Co Ltd said in a statement it is selling its 60 percent stake in a company that owns the high-profile One Nine Elms project in London for £35.61 million ($49 million). The buyer has also agreed to repay £159.5 million in debt.
• A separate Wanda firm, Wanda Commercial Properties (Hong Kong) Co Ltd, is also selling the remaining 40 percent stake in the property project in southwest London at the same terms.
• Last year, Chinese regulators told banks to stop providing funding for several of Wanda's overseas acquisitions as Beijing looks to curb what it sees as irrational spending by some major domestic conglomerates.
• Shortly after, Wanda sold a portfolio of domestic hotels and tourism assets, including 13 theme parks, for $9 billion to R&F and Sunac China.
• Wanda is also considering a Hong Kong listing for its sports assets as part of efforts to rationalise its portfolio that could also include other sales.
• Its other flagship overseas developments - in Chicago, Los Angeles, Sydney and Australia's Gold Coast - are also available for sale.
• Last year it dropped plans to purchase a neighbouring property, Nine Elms Square which was bought instead by R&F and CC Land Holdings Ltd.
JD.com widens South-East Asia presence by investing in Vietnam’s Tiki.vn (The Star / Reuters, 16th January 2018)
• Chinese online retailer JD.com Inc has made an investment in Vietnamese e- commerce firm Tiki.vn, expanding its South-East Asia business amid growing competition in the region from Alibaba Group Holding Ltd and Amazon.com Inc.
• JD.com co-led the financing with Vietnamese entertainment and social media firm VNG Corp, which is an existing investor.
• Vietnam is the latest focal point in JD.com's strategic push into South-East Asia, where Alibaba and Amazon have also made significant investments in the past year.
• JD.com will tap Tiki.vn's warehousing and delivery system, as well as its technology and payments capabilities.
• While South-East Asia's e-commerce market is still nascent compared to the China's, improvement in Internet services and an increase in mobile-based payments have attracted large international e-commerce firms to the region.
• Alibaba has invested heavily in payment and e-commerce ventures in Thailand, Singapore, Indonesia and Malaysia. US retailer Amazon also launched its subscription-based Prime service in Singapore last month in a bid to challenge Alibaba-backed online retailer Lazada Group in South-East Asia.
• JD.com launched a local online retail business in Indonesia two years ago, and now claims to be the country' largest retailer by revenue. It also formed a US$500mil (RM1.97bil) e-commerce venture with Thai retailer Central Group.
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• Besides VNG, Tiki.vn's previous investors include Seedcom, Sumitomo Corp and CyberAgent Ventures.
China luxury sales rebound as millennials snap up cosmetics, handbags — report (Reuters, 17th January 2018)
• China's luxury goods market is back in fashion.
• Domestic sales of Gucci handbags to Chanel cosmetics, sluggish in China for years, rose at the fastest pace in over half a decade last year and are poised to consolidate the gains in 2018, according to consultancy Bain & Co.
• That could provide a major fillip for brands targeting the world's top luxury spenders, though who benefits most will depend on which brands are able to lure in China's big-spending youth — now the driving force in the market.
• Sales of luxury goods in China hit 142 billion yuan (US$22.07 billion) last year, up around 20% from the year before. That's the sharpest growth since 2011, when luxury sales started to be hit by slower economic growth and a fierce crackdown on corruption.
• China's shoppers are the biggest spenders worldwide on luxury products, making up 32% of the 262 billion euros (US$308 billion) global market last year and propelling France's LVMH, Burberry and Gucci owner Kering.
• The sharp rise — which saw particularly strong growth for women's clothing, jewellery, cosmetics, shoes and handbags — follows tepid growth in 2016 and dips in both 2015 and 2014.
• China's domestic market makes up 8% of global luxury sales and despite fast growth at home Chinese shoppers still make three-quarters of their luxury purchases overseas.
• China's luxury market should also see robust growth this year "fuelled by millennials and ready to wear" attire, though the growth rate would likely slow down to "low-mid teen" levels given the fast growth in 2017.
• The revival is being driven by China's tech-savvy millennial generation aged between 20 to 34, who generally prefer ready-to-wear and fast fashion over more traditional design, helping propel new areas like luxury casual wear and sportswear.
Lower investments abroad by China in 2017 (The Star, 17th January 2018)
• China’s non-financial outbound direct investment in 2017 fell 29.4% year-on-year to US$120.08 billion as firms backed off from speculative overseas investment amid a government crackdown.
• Outbound direct investment (ODI) in December alone rose 49% year-on-year to US$12.53 billion, extending gains from a 34.9% annual growth in November.
• The positive ODI growth in the past two months is largely thanks to increased Chinese investments in manufacturing and information sector while no new Chinese investments were made in property, sports and entertainment industries.
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• Overseas investment by Chinese firms has fallen sharply since Beijing in late 2016 implemented strict controls on capital leaving the country.
• Investment in countries involved in China’s Belt and Road initiative (BRI) , an extensive infrastructure plan meant to link Asia with the Middle East and Europe, totalled US$14.36 billion in 2017.
• Belt and Road deals accounted for 12% of total investments in 2017, up 3.5 percentage points from a year earlier.
• After the tumble in ODI in 2017, China is likely to see an increase in overseas investment deals this year.
• The yuan’s appreciation has provided some impetus for Chinese firms to do deals overseas.
• Foreign direct investment (FDI) into China in December fell 9.2% from a year earlier to 73.94 billion yuan (US$11.49 billion), the first decline in five months.
• For 2017, FDI rose 7.9% to 877.56 billion yuan.
• China faced relatively big external pressure in attracting FDI this year due to the global investment environment’s uncertainties.
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The Maples Niseko, Hokkaido, Japan. Freehold ski-in ski-out apartments from ¥60,000,000.
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