Office design a big part of setting up shop

Looking forward: Dhanalakxmi said offices now had to be playful, colourful and people-friendly.

SMALL and medium enterprises should also look at office design when setting up shop to create a conducive and productive working environment.

Odil Design Sdn Bhd design director T. Dhanalakxmi said office space quickly becomes a second home for most people and it is important for employers to make them feel comfortable.

“It has to be playful, people friendly and colourful. Open concepts and a less stressful discussion area are a must,” she said.

She added that the modern office concept became mainstream following Google’s popularity and Google’s concept has become a benchmark for startups and entrepreneurs.

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Kinta Lake District project beginning by year-end

New development: Dr Zambry explaining the ‘green’ township project. With him is ( from left) Mentri Besar Inc CEO Aminudin Hashim and State Local Government Committee chairman Datuk Saarani Mohamad.

THE Perak Government has announced a RM2.18bil “green” township project to be developed near Tronoh in Batu Gajah.

Mentri Besar Datuk Seri Dr Zambry Abd Kadir said the mix development project would be eco-friendly promoting the use of sustainable resources and materials and incorporating the concept of green buildings for modern living.

Themed “Kinta Lake District” project, Dr Zambry said it would be developed on a 106.8ha piece of land near the Ipoh-Lumut road during the memorandum of understanding between Mentri Besar Inc (MB Inc) and Ipoh City Development Sdn Bhd, a subsidiary of Putrajaya Perdana Bhd at the state secretariat building recently.

“With the development, it will add another landmark in the state.

“The project is also an effort to develop ex-mining land, to ensure these would not be left idle,” he said.

“We will also preserve some of the lakes and former mining pools, which have become a sanctuary for flora and fauna,” he said.

“The project will also be developed within a 15-year span, which includes housing estates, commercial units, education centres and recreational parks,” he added.

Dr Zambry said the project had been in planning in the last few years.

He said it was part of the Perak Amanjaya development blueprint, that was intended to steer the social, economic and regional development of the state to become fully developed.

Putrajaya Perdana Bhd executive chairman Datuk Rosman Abdullah said the project was still being planned out and hoped that it could begin before year-end.

“The first phase of the project will include 4,500 units of houses, including bungalows, terrace and semi-detached homes.

“Of the 4,500 homes, about 1,000 units would consist of affordable homes,” he said.

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High-end homes near park

Simply marvellous: Exclusive semi-detached houses next to Bukit Dumbar Recreational Park.

MARVELLOUS Land Sdn Bhd will launch RM51mil worth of high-end residential property next to Bukit 

 Dumbar Recreational Park over the next 12 months.

They are the RM15mil Quattro Primera 6, comprising six three-storey semi-detached houses, and the RM46mil Quattro Light with 76 condominiums, located in Jalan Bukit Dumbar and Jalan Faraday respectively.

Marvellous director Yeow Jing Hooi said Quattro Primera 6 would be launched in March.

Priced from RM2.5mil each, the semi-detached units have a 3,600sq ft built-up area and a 3,500sq ft land area.

”All the units are equipped with a lift and jacuzzi.

”Quattro Primera 6 is a private sanctuary located in a quaint enclave.

“Residents will enjoy the pleasant tranquillity and still live conveniently close to surrounding amenities such as the Tesco hypermarket at MetroEast in Jalan Udini, and a mixed-development scheme that includes the well-known retail-cum-office complex, e-Gate.

“The Penang International Badminton Hall and Nicol David Squash Centre in Bukit Dumbar Recreational Park are just a stone’s throw away,” she said.

“Quattro Primera 6 homes are designed with tall windows for optimum illumination and natural light into the home, creating a cosy and invigorating living atmosphere.

“To ensure excellent air circulation, we provide cross-ventilation.

“The units have spacious built-up areas for ample privacy.

“All the units have a timeless design which will remain relevant for future generations,” she said.

Quattro Primera 6 can be previewed today at Marvellous Land office at 8, Jalan Mas, from 10am.

The 24-storey Quattro Light project comprises condominiums with built-up areas of 1,000sq ft and 1,400sq ft.

“The key attraction is its low-density feature, as there are only five units on each floor.

“We plan to launch the scheme early next year,” she said.

Marvellous Land, which was established in 2008, has developed 52 units of high-end landed residential property on prime land on the island.

“The company will continue to source for new land on the island to launch more high-end homes, as they are still very much in demand,” Yeow said.

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Ken plans RM2bil projects

Artist’s impression of KEN TTDI, a platinum grade corporate office project in Taman Tun Dr Ismail, Kuala Lumpur.

PETALING JAYA: Ken Holdings Bhd has lined up four hotels and an office project, all with a gross development value of RM2bil, over the next two years to boost its earnings.

Group managing director Sam Tan said the hotels would be located in Genting Highlands, Johor Baru, Kota Baru and Shah Alam, while the office project would be in Kuala Lumpur.

In line with his vision of steering Ken Holdings towards building more environmentally sustainable projects, Tan said the development would be green-rated.

“We intend to introduce a top-level brand for the hotels in Genting Highlands and in KEN JBCC in Johor Baru, and a boutique business hotel concept in Kota Baru, Kelantan, and in KEN RIMBA, Shah Alam,” Tan told StarBiz.

The properties are both for sale and recurring income.

Tan said the group’s long-term strategy was to build a strong recurring income.

Its platinum grade corporate office, KEN TTDI, which has incurred some RM150mil in investment, is due for completion by the first quarter of 2015, while KEN Kota Baru and KEN JBCC are earmarked for launch this year.

Located in Jalan Burhanuddin Helmi in Kuala Lumpur’s Taman Tun Dr Ismail, the MSC-status and double platinum award winning (LEED Platinum and GreenMark Platinum) KEN TTDI houses a performing arts theatre, facilities for meetings, incentives, convention and exhibition, a rooftop pool, gymnasium, and F&B outlets.

For the KEN JBCC project in Johor Baru, Tan said Ken Holdings was a strategic partner to the Iskandar Regional Development Authority, adding that it would be the first green integrated city in Iskandar Malaysia.

Located near the Woodlands checkpoint, he said the project would have retail space, hotels, serviced suites, offices and medical centres.

Meanwhile, its Kota Baru project, located next to the KB Mall, will also feature a green-compliant hotel and serviced suites.

“Hailed as the equivalent of the iconic KLCC, it aims to introduce a new standard of green living for the professionals and returning Kelantanese,” Tan said.

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City & Country: Cover Story - ‘No such thing as a slow period’

SOMETHING is brewing at Berjaya Land Bhd, but it is not another land deal. The property development arm of conglomerate Berjaya Corp Bhd has in recent years become better known for its costly and controversial land deals in Malaysia instead of its new projects. Lim Ching Choy, who joined Berjaya Land as executive director in November, feels that it is time for a change. “That’s why I was brought in [because Berjaya Land is quiet locally]. I know it’s a tall order but I plan to achieve sales in all our immediate projects by April 2015, which is the end of our financial year,” he tells City & Country. The group has projects worth more than RM2.5 billion lined up over the next year and Lim plans to sell all of these properties by 2015. In the financial year ended April 30, 2014, its property development segment saw revenue of RM201.9 million and net profit of RM2.6 million. Lim took over the group’s local projects from CEO Datuk Francis Ng, who now looks after Berjaya Land’s projects abroad — Jeju Airest City in South Korea (183.7 acres, gross development value of US$3.2 billion), The Four Seasons Place in Kyoto, Japan (five acres, RM1 billion), The Great Mall of China on the outskirts of Beijing (18.5 million sq ft built-up, RM7.5 billion), and two projects in Vietnam. Lim is no stranger to the real estate industry, having spent the last 12 years as the CEO of HCK Capital Sdn Bhd, group managing director of Ho Hup Construction Co Bhd, CEO of Magna Prima Bhd and CEO of Mah Sing Group Bhd. Before joining the real estate industry, his career in the banking sector spanned almost 20 years. Can he achieve his ambitious goal? He believes it is possible through sheer hard work. I think if you have a plan, a target, you have to work even if it’s the holidays … that’s why sometimes it’s good to launch during the holiday season, because you’ll have less competitors” — Lim “My philosophy is to work 365 days a year. I work during Chinese New Year, I work during Hari Raya. There is no such thing as a slow period because it depends on your marketing and how you position yourself. That’s why I will launch Jesselton Villa [in Penang] on the fourth to eighth day of Chinese New Year at Plaza Gurney. I think if you have a plan, a target, you have to work even if it’s the holidays … that’s why sometimes it’s good to launch during the holiday season, because you’ll have less competitors. Because they are resting, I am working.” He lists three immediate launches that will keep the group occupied over the next year, including its Ritz-Carlton Residences at Berjaya Central Park. The entire development was announced in 2009. However, the project took a while to launch, prompting some quarters to assume that the project had been abandoned. Why launch it now? “We revised the plans a lot to be in line with market requirements. For example, our Ritz-Carlton Residences was revised to have smaller units to suit demand and it is already near completion. Not many developers launch their projects now but we are almost ready to sell our project,” he explains. Developed to sell The group will continue to market its Menara Bangkok Bank at Berjaya Central Park, a 2.7-acre freehold mixed-use development on Jalan Ampang, Kuala Lumpur. The 48-storey building is named after Bangkok Bank, which bought the top eight floors (105,000 sq ft) in 2011 for RM100 million. Meanwhile, Berjaya Sompo Insurance Bhd, an associate of the Berjaya group, took up six floors or 78,000 sq ft , bringing the tower’s total sales to RM315 million. The group is putting 15 storeys on the market with an estimated value of over RM200 million. The offices will come with en suite executive bathrooms with showers, low-e glass, variable refrigerant volume system, carbon dioxide level monitoring on all floors including the seven floors of parking bays, and a high-efficiency lift system with destination control system. The building also comes with lots earmarked for commercial use and food and beverage outlets. While Berjaya Land is selling the offices on a per floor basis, the offices will be issued strata titles upon vacant possession and completion of payment. This means the owners will be able to sell the offices individually on the secondary market, says Lim. He adds that the offices are targeted at investors, multinational corporations and companies that wish to own office space in Kuala Lumpur’s central business district. “We are targeting to sell 5 to 10 floors in the next three months. In fact, we are already negotiating with several parties. We are looking at not just local companies, but also foreign buyers who are keen to invest in Malaysia, especially the office sector. For Singaporeans, it is cheap because it amounts to around S$600 per sq ft and we are targeting yields of 7% net so that is very attractive,” he says. “We are in talks with two foreign companies now, while a number of local companies have expressed interest in our project. They are keen to buy some floors as they get to keep the units and enjoy capital appreciation while paying less in instalment than what they would pay in rent. “Assuming you get an 80% loan to finance your purchase, you end up paying only RM5.80 psf over the next 30 years. This beats paying RM8.50 to RM12 psf for a building of the same standards.” However, despite the building’s apparently good prospects, Berjaya Land is not interested in keeping the building. “We are a developer, not an investment holding company, so it makes more sense for us to sell the building,” he explains. Next up is the Ritz-Carlton Residences, which will feature 48 storeys of fully-furnished serviced apartments. About 70% of the units will offer a view of the Petronas Twin Towers and KL Tower, and a premium will be placed on these units.   “We are looking at late February or early March to officially launch the residences. Today, all 16 units of the penthouses have already been reserved while 40 typical units have been reserved,” he says. Some facilities exclusive to the residences include concierge service and pools. “The office tenants have the right to look at the pool, but not swim in it,” he jokes. Lim is banking on the fact that the development is strata titled, and has facilities for individual units, green credentials and a Golden Triangle address to attract buyers. He hopes this product will sell despite the oversupply of office space in Kuala Lumpur, coupled with competition from decentralised areas with depressed rents. “That the office market is depressed is misleading. Valuers describe the office market as depressed in general, but there is still interest in green and MSC-certified office buildings,” he says. YY Lau, director of YY Property Solutions Sdn Bhd, concurs: “New office buildings that are at strategic locations and equipped with MSC Status and green building certifications are expected to be in a better position to secure tenants if the landlords offer reasonably higher rental rates than the buildings without these two features,” she tells City & Country. Outside of Kuala Lumpur, the group will proceed with The Link 2, its Bukit Jalil mixed-use development next to its Bukit Jalil Golf & Country Resort. The Link 2 will comprise condominiums and shopoffices. Phase one will comprise “affordable” serviced apartments and 4- and 6-storey shopoffices. Over half of the shopoffices have already been sold, while the serviced apartments are not yet available for sale. “We haven’t decided on the price yet but the new launches nearby are selling at around RM770 psf, so we definitely cannot sell below that price,” says Lim. Bukit Jalil has seen a slew of new condominium launches in recent years but he is banking on Berjaya Land’s history in the area to push the project through the market. Some of the group’s previous projects in the area are Covillea, Savanna 1 and 2, Arena Green Apartments, Greenfields Apartments, The Link, KM1 and Green Avenue Condominiums. The group has around 14 acres left in Bukit Jalil. This includes the second phase of The Link 2, which will be launched at a date to be determined later. See Kok Loong, principal of Metro Homes Sdn Bhd, observes that most buyers are investors who took advantage of rebates and the now-defunct developer interest bearing schemes. “Most the buyers are investors because of developer interest bearing scheme (DIBS) and rebates. There is also a small group of end-users that prefer to stay in prime locations with easy access to KL, Puchong and PJ. Usually, they are from nearby areas like Puchong and Serdang,” says See. According to him, gross yields of condos in the area are around 5% to 6%. Most investors prefer to sell their units immediately instead of holding onto them as it firstly costs around RM20,000 to RM30,000 to furnish the units for tenants, and secondly, capital appreciation of new condos over the past three years range from 10% to 20% per year. Over in Penang, the group will launch its Jesselton Villas development, which is adjacent to the Penang Turf Club and the exclusive Jesselton Heights enclave. So far, about 50% of the lots have been reserved by investors from Penang, Kuala Lumpur, Singapore, Hong Kong, Thailand and Indonesia, he says. The project will comprise vacant bungalow lots instead of the bungalows, semi-detached homes and low-rise condominiums previously planned. While Berjaya Land is only offering vacant lots within the gated and guarded project, it will offer design and build services to the buyers in the future. However, the designs and prices of the bungalows have yet to be firmed up. Lim is undeterred by what many players and observers say will be a challenging period ahead. “There have been sales in the past two months and so far the response has been positive. The regulations and policy changes in the industry have not actually had an impact on these projects because these are very good locations. “I think buyers in niche and high-end projects are less sensitive to all these. I think if you are an owner and mid-term investor, you will not be affected. As an investor, my personal view is that if you want to make money from properties, your holding period has to exceed five years to reap good returns. I think that differentiates the speculators from the long-term investors,” he says. This article first appeared in The Edge Malaysia Weekly, on January 20, 2014. For more information on Building and Construction seminars, please visit www.asiapacificevents.com

City & Country: Seri Pajam introduces green living to Pajam

THE roads of Pajam in Negeri Sembilan, a little over an hour’s drive from Kuala Lumpur, are lined with old kampung houses that have seen better days. Seri Pajam Development Sdn Bhd, the largest developer there, is looking to change that.

Pajam falls under the Nilai district and sits along the main road that connects Kajang and Seremban.

Seri Pajam has already introduced modern bungalows and semi-detached houses to the area with Perdana College Heights, which was launched in 2006. Prior to this, such homes could only be found closer to the Seremban city centre.

Seri Pajam was established in 1994 and has six ongoing projects with a combined gross development value (GDV) of RM1.52 billion. The developments are Perdana College Heights, Citra Hill & Nada Alam in Pajam, Bandar Warisan Puteri in Seremban, Nusa Intan in Senawang, Tiara Heights in Salak Tinggi and Desa Putera in Bahau.

Now, Seri Pajam is offering Pajam a new lifestyle concept. Its director Tey Soo Leng says the developer is introducing green living via Nada Alam — its latest development in Pajam.
Nada Alam, which has a GDV of RM630 million, sits on 160 acres of freehold land separated into five precincts with 13 acres of green space. The first phase — Nada 1 — consists of 198 two-storey terraced houses on 20 acres with sizes ranging from 2,366 to 2,545 sq ft. Prices start at RM420,000.

With a GDV of RM91.7 million, this phase has 26 facilities, including a herb garden, bamboo walkway, reflexology path, soccer field, mini wetland, viewing tower and gazebos. Previewed in August 2014, Nada 1 has been fully taken up.

Seri Pajam is looking to introduce Nada 3 to the market next.

Nada 1 will be completed next year while the entire development will take five to six years to complete.

“We will continue our concept of green living with a mix of products, including super link, 2-storey terraced and semi-detached homes,” says Tey.

Green living
Seri Pajam’s new concept will include green living and the reduction of its carbon footprint. “We have semi-open areas in our super-link designs and bicycle bays in all our parks to encourage the residents to cycle,” says Tey.

Seri Pajam is also fully incorporating the industrialised building system (IBS) in the construction of Nada Alam.

With such green features as rainwater harvesting and extra-wide windows for better ventilation and natural light in these products, one would assume Seri Pajam’s next step would be to go for green building certification.

But Tey says not so soon. “This is our first project with so much emphasis on green features. We need better preparations before we go for Green Building Index (GBI) certification. When we are ready, we will definitely go for it.”

The GBI is Malaysia’s green rating tool. It has been developed to suit the country’s tropical climate and environment.

As green living is new to Nilai and the surrounding areas, Tey says Seri Pajam is testing customer response. Some may say Nada Alam only meets the minimal requirements, but Tey stresses that it has embraced the concept by blending into its natural surroundings, thus reducing the damage of earthworks and other construction processes.

Tey: We will continue our concept of green living with a mix of products, including super link, 2-storey terraced and semi-detached homes in Nada Alam

“Green living was chosen because of its sustainability. It is more sustainable than other concepts in terms of maintenance and its impact on the surrounding environment. Green living also encourages the growth of the lush greenery in the parks and the delicate wildlife they support. We want to present new homeowners with such parks.”

Before construction began, Seri Pajam conducted a river preservation exercise on the site of Nada Alam and also minimised the cutting of trees. The design incorporates a 7km-long jogging path, recycling bins and solar spotlights for the gardens and billboards, among other things.

Besides emphasising green living, Seri Pajam is also introducing new safety features its products. “For property, the most frequent accident is fire, so we will be providing fire blankets, smoke detectors and escape ladders to our developments. Some of these will be introduced in the later phases,” says Tey.

“We have got a lot of support from buyers in Seremban, Nilai and KL. About 90% of our buyers are from the Klang Valley.”

Tey attributes this to the accessibility of Seri Pajam’s developments via Lebuhraya Kajang-Seremban and the North-South Expressway.

“Five years ago, we were a very small company. When we started developing the Pajam area, we could see a rise in population,” he recalls.

According to Tey, the value of properties have gone up quite a lot since.

“We launched Perdana College Heights’ 2-storey units at RM148,000 in 2006 and Citra Hills in 2012 at RM380,000. But now, the subsale prices are RM500,000,” he says. “Our house owners are very happy.”

Seri Pajam has another 300 acres of undeveloped landbank and is still expanding it. Tey believes Nada Alam will become its flagship project there.

Moving on to north Selangor
According to Tey, Seri Pajam is planning projects in northern Selangor next. “Our company has been developing in southern Selangor, in Nilai and Bahau, since 1978. This provided us with the opportunity to focus on building quality products because land prices are still manageable. We can still build comfortable homes for our buyers.

“However, we are planning to move to, maybe, Cheras, Kajang and Petaling Jaya. If we find suitable land in these places, we’ll buy it.”

But even if the developer purchased land in the Klang Valley, it will not be for high-end products like those offered by other developers in the Klang Valley these days, Tey adds.

“Our prices and products will depend on market demand. We started out as a construction company, so we have our own contractor and supplier. We have hardware, manufacturing, construction and development. So, we can save some cost, which will benefit our future buyers.”

Moving forward, Tey is optimistic that the developer’s products will sell well. “As we have enjoyed full take-up, we can proceed with the planning of future components and we are confident at this point.”

Seri Pajam’s Nada 3 is now open for registration and offers terraced and semi-detached homes.  It will officially be launched in March 2014.


This article first appeared in The Edge Malaysia Weekly, on January 20, 2014.
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E&O opens sales gallery for The Mews

KUALA LUMPUR: Eastern and Oriental Bhd (E&O) launched its sales gallery for its latest project, a joint venture development with Japan-based real estate developer Mitsui Fudosan Co Ltd dubbed The Mews on Jan 20.

Currently, 70% of the project has been taken up with 10% of the buyers from Japan.

The Mews offers 256 units with built-ups between 922 sq ft and 2,619 sq ft priced at RM1,700 psf. It offers two 38-storey serviced apartment towers on 1.29 acres (0.52ha) of freehold land in Jalan Yap Kwan Seng.

It commands a gross development value of RM400 million. The sales gallery features three show units with built-ups of between 923 sq ft and 1,459 sq ft.

The development is a 51:49 joint venture project in favour of E&O. Amenities include a gymnasium, squash court, swimming pool, spa pool, pond, residents lounge, children’s pool, children’s playground, function room and herb garden. It also offers 24-hour security and concierge services. Completion is expected within the third quarter of 2017 (3Q17).

According to Eric Chan, deputy managing director of E&O, property has to be seen from a long-term perspective. He feels the prospects for property development in the country are still good at this time.

“Malaysia still has a lot to offer in the region,” he said.

Ryosuke Uematsu, general manager of Mitsui Fudosan’s overseas department, said Malaysia’s economy is stable with good growth opportunities and potential for development.

The launch was performed by Uematsu and Chan along with Lyn Chai, director of E&O’s group corporate strategy and Tomoo Nakamura, executive director and head of Mitsui Fudosan’s residential team. All four took part in the kagami biraki or sake barrel ceremony that required them to break open the sake barrel.

Meanwhile, E&O is expected to launch its latest development in Johor, Avira, in 1Q14. Chan said further details will be announced soon.

E&O is a luxury lifestyle developer listed on the Main Market of Bursa Malaysia. It has a proven track record with a series of exclusive addresses in Kuala Lumpur and Penang. Its projects include Dua Residency condominium in KL city centre, Idamansara and Seventy Damansara in Bukit Damansara, and Seri Tanjung Pinang in Penang.
 

This article first appeared in The Edge Financial Daily, on January 24, 2014.

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