MONTH: FEBRUARY 2014 ISSUE: 02/2014 Property News PA International Property Consultants is a registered real estate firm committed to providing a comprehensive range of property solutions to meet the needs of investors, occupiers and developers. The Research Division provides core real estate information to clients and internal departments in order to ensure accurate real estate decision-making. Our research team has completed market studies and research work for various ongoing development schemes within Klang Valley, providing comprehensive economic analysis, property PA INTERNATIONAL market information, forecasts and consulting advice based PROPERTY CONSULTANTS (KL) SDN BHD on reliable sources. Phone: 03-7958 5933 We constantly strive to present the most up-to-date Fax: 03-7957 5933 Website: http://www.pa.com.my market knowledge in order to ensure clients are well- Email: [email protected] armed with sufficient data to make the right property decisions. Issue 2: 1- 28 Feb 2014 GENERAL ECONOMIC & PROPERTY MARKET 1. CCM completes disposal of land (Star Biz,14 February 2014) . Chemical Company of Malaysia Bhd (CCM) has completed the disposal of 2-contiguous parcels of freehold GENERAL ECONOMIC & PROPERTY MARKET / DEVELOPMENT LAND land in Kuala Lumpur, along with 3-units of double-storey detached houses, to Permodalan Nasional Bhd (PNB) for RM74.8 million cash. The proposed disposal has been completed and vacant possession of the properties has been delivered to PNB. DEVELOPMENT LAND 2. LBS Bina rises to 2-month high on Johor land deals (Business Times, 18 February 2014) . Last week, LBS Bina bought 1.73ha in Iskandar Malaysia, Johor, from the Employees Provident Fund (EPF) for RM71.82 million. Seven months ago, it acquired a 0.5ha plot in the same vicinity for RM42 million. LBS Bina said it will develop both land parcels into a mixed development worth RM2 billion, which is a fourfold increase in gross development value (GDV) for the proposed project. When LBS Bina acquired the first piece of land last July, it had said the GDV would be around RM500 million. But after the second deal, it decided to combine both land parcels to create a larger development. 3. Eco World plans for Kota Masai (StarBiz, 4 February 2014) . Eco World Development Group Bhd is working on a new plan for undeveloped parts of Kota Masai township in Johor that will reflect its new owner. It gained control of this mature township, which still has 401ha of landbank, after it took over Focal Aims Holdings Bhd last year. The company also would relaunch the final 26 residential units at Saujana 0-Lot, a small high-end development in Glenmarie near Shah Alam, Selangor. 4. 1MDB buys Tadmax land for RM317mil (Star Biz, 21 February 2014) . Government-linked company 1Malaysia Development Bhd (1MDB) has bought a 310-acre land in Pulau Indah from Tadmax Resources Bhd for RM317.3 million, or RM23.50 per sq ft. This is the first plot of land that 1MDB is acquiring from the private sector, given that it had earlier obtained two strategically located plots in the city via direct negotiations with the Government. The leasehold flat land at Lot 72779 is located in Klang, Selangor. With 82 years to run its course before expiring in 2096, the land is located within a larger plot measuring 381 acres adjoining the Port Klang Free Zone (PKFZ) mega transhipment hub. 1MDB is buying 310 acres of this plot. With this purchase in Pulau Indah, IMDB comes in second to A&M Realty Bhd in terms of land bank in the area. A&M Realty is developing the Amverton Cove Golf & Island Resort, a 2,000-acre project worth RM10 billion in Carey Island, south of Port Klang. Our philosophy is simple: A unique combination of People, Intellectual Property, Relationships, Services and Commitment 1 Issue 2: 1- 28 Feb 2014 RESIDENTIAL PROPERTY IN KLANG VALLEY 5. Fiamma eyes project launch in KL early next year (Star Biz, 10 February 2014) . Fiamma Holdings Bhd hopes to launch its second property development project in Kuala Lumpur early next year, comprising two blocks of 40-storey service apartments at Jalan Yap Kwan Seng. The project, that is pending approvals from the relevant authorities, will be located on a 0.6ha site near the Public Bank headquarters and the Australian High Commission at the Jalan Ampang intersection. “The planned development will be bigger than our project at Jalan Tuanku Abdul Rahman,” said the company’s spokesperson. The office and retail project has a gross development value of RM160 million and is almost fully sold. 6. New heights for Kajang (Metro Biz, 10 February 2014) Scenic township (Star Metro, 25 February 2014) Project / development Tropicana Heights Kajang (Fairfield Residences) Developer Tropicana Corp Bhd RESIDENTIAL PROPERTY Location Kajang Development type / unit Two and three-storey terrace homes -289 units (2-storey) -91 units (3-storey) GDV RM2.3 billion Tenure Freehold Land area 199 acres Fairfield Residences -25 acres Completion date About 10 years to complete Price From RM736,000 to RM1.4 million Built-up From 2,135 sq ft. Facilities . Multi-purpose hall . Playground . Swimming pool . Kindergarten . Barbeque area Features . Market square . Neighbourhood schools . Landed residential property . Significant green areas . Condominiums Notes . Previously the land was known as Kajang Hill Golf Club. The area is easily accessible via the SILK and Lekas Highways and flyovers and upgrade of roads have been proposed to service the nearby developments. Tropicana is also expected to open its show village soon to showcase its Kajang property. While this translates to an average price of RM360psf, which is on the high side for a property in Kajang. Fairfield Residences is planned as a low density residential area with only about 11 units of homes per acre. In line with the developer’s vision for a green development, a sizeable part of Tropicana Heights Kajang has been allocated for green space. This includes a 16- acre central park flanked by mature trees transplanted from the existing golf club. The central park will also feature a children’s playground, fitness garden, futsal court and spice garden among other things. There will also be a 1.5-acre community linear park within Fairfield Residences itself. More than 60% of units are booked. 1.5-acre linear park, which is in line with the concept of Tropicana Heights being Our philosophy is simple: A unique combination of People, Intellectual Property, Relationships, Services and Commitment 2 Issue 2: 1- 28 Feb 2014 a green township. The main draw of this green concept is the additional 16 acres dedicated to the creation of a Central Park in Tropicana Heights, which is also currently being developed with Fairfield Residences. Single entry and exit entrance at Fairfield Residences with 24 hours guards. Tropicana Heights is designed to be a low-density township with a mix of both landed and high-rise residential and commercial properties hence Kajang can expect to see big developments in the years to come. Kajang will be especially well connected after the completion of the new Mass Rapid Transit (MRT) Sungai Buloh-Kajang line. The local council is also working with several local developers to finalise the details for a proposed nearby flyover access directly from Bangi, which will greatly increase the accessibility of Tropicana Heights. RESIDENTIAL PROPERTY Two and three-storey terrace homes 7. L&G plans RM788mil project (Star Biz, 12 February 2014) L&G plans project with GDV RM788m (Sun Biz, 12 February 2014) . Land & General Bhd (L&G) plans to launch its second Ampang serviced apartment project by the end of this year or early next year, having obtained shareholder approval. The joint-venture (JV) project with the Malaysia Land Properties Sdn Bhd (Mayland) group has a gross development value of RM788 million. With a gross development cost of RM558 million, L&G should see an estimated profit of RM230 million from this project in its 2015 financial year. They are trying to include features like dual-key units and 3+1 bedroom units and are awaiting approval from local authorities. The new development will have four 46-storey apartment blocks and will be launched in two phases. The group was looking to price the units at about RM900 per sq ft. In November 2013, the company’s wholly owned subsidiary, Pillar Quest Sdn Bhd, entered into a JV and shareholders’ agreement with Positive Valley Sdn Bhd, a unit of Malaysia Land Properties Sdn Bhd to acquire and develop the land via Extreme Meridian Sdn Bhd as the JV company. Extreme Meridian also entered into a conditional sale and purchase agreement with Bingo’s Gold Sdn Bhd for the proposed acquisition of land for cash RM118.49 million. Our philosophy is simple: A unique combination of People, Intellectual Property, Relationships, Services and Commitment 3 Issue 2: 1- 28 Feb 2014 8. Developer to launch new phase in Melawati (Metro Biz, 21 February 2014) Project / development Nadayu Melawati (Nadayu62) Developer Nadayu Properties Bhd Location Taman Melawati Development type / Apartment / 182 unit unit GDV RM91 million Land area 2 acres Built up From 950 sq ft to 2,015 sq ft Price From RM612,000 onwards or RM579 per sq ft Completion date 2017 Facilities . Multi-purpose hall . Playground . Swimming pool . Kindergarten . Barbeque area Notes . The surrounding developments are priced at an average price of RM600 per sq ft. Mohd Farid Nawawi, Chief Executive Officer of Nadayu Properties, says enquiries about Nadayu62 have been good so far and he expects the project to be sold out at the official launch, which is slated for mid-March. Nadayu Melawati is located about 15km away from KLCC and is served by several major RESIDENTIAL PROPERTY highways including the DUKE Highway and the MRRII.