Project 3B on Pulau Indah land?

KUALA LUMPUR: 1Malaysia Development Bhd (1MDB), which last week won the coveted 2,000mw coal-fired power plant known as Project 3B, may move the proposed project site to Pulau Indah, Selangor, from its original location in Jimah, Negeri Sembilan.

There has been rampant market speculation, with confirmation from several industry sources, that the state-owned investment company is in discussion with the Energy Commission (EC) to explore the relocation of the RM11 billion project to the 310-acre (125.45ha) piece of land in Pulau Indah which 1MDB recently purchased from Tadmax Resources Bhd for RM317.3 million.

The Pulau Indah land was acquired barely a week before Project 3B was awarded. 1MDB originally proposed to undertake Project 3B at the recently acquired 1,400mw Jimah Power Station.

It is understood, however, that a change of location would directly contravene the tender rules. The EC is under pressure to explain why it awarded Project 3B to 1MDB when YTL Power International Bhd had put in the lowest bid.

Both 1MDB and the EC could not be reached for comment.

Given that 1MDB now won the project, the change of location to Pulau Indah stands to benefit all the stakeholders — 1MDB, Tenaga Nasional Bhd as the sole off-taker, and the public as end-users, according to industry players. They believe Pulau Indah would be a better site for the power plant due to the size and location of the land.

Tadmax, one of the seven original contenders for Project 3B, had proposed the Pulau Indah site in its bid but the company did not make it to the next round after failing to meet the technical and financial requirements.

“Building two 1,000mw blocks on the Jimah site would be no mean feat. There simply isn’t enough room. Just use Google maps and see how much space the 1,400mw Jimah plant currently occupies. Then compare this with the vacant land [next to the existing Jimah plant] and imagine building a new 2,000mw plant there,” an industry player told The Edge Financial Daily.

Therefore, 1MDB is expected to undertake land reclamation if the Jimah site is to accommodate the huge 2,000mw plant. But land reclamation is not only expensive, it is also time-consuming. The scale of the earthworks would also make it challenging to meet the October 2018 deadline to hand over the first phase of Project 3B.

Also, the bigger site at Pulau Indah means that there would be room for future expansion, a bonus for 1MDB. When the tender for Project 3B was originally opened it was supposed to be a greenfield project.

Most of the existing brownfield coal-fired plants are already heavily planted up and lack room for expansion, said another industry player, adding that a new greenfield site would broaden the coal-fired planting-up options for the EC in the future.

Industry players also noted that it would be easier for 1MDB to build the transmission line from Pulau Indah to the Olak Lempit injection node than to build the line from Jimah to Olak Lempit. Both transmission lines would be about 30km long.

“The northern alignment [Pulau Indah to Olak Lempit] for the transmission lines would mainly run through plantation land, which is easy to acquire. In comparison, the southern alignment from Jimah runs through some land that might be difficult to acquire,” said an industry player.

However, the northern alignment would require the cooperation of the Selangor government.

It remains to be seen if 1MDB and the EC will be able to relocate Project 3B. On the one hand it would reflect poorly on the tender process if bidders were allowed to make material changes to their proposals even after the tender was awarded. If the EC allows the project to be relocated, it is likely the other bidders will call for a re-tender.

However, the relocation could be justified if 1MDB can offer lower tariffs to Tenaga.


This article first appeared in The Edge Financial Daily, on March 05, 2014.

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Suntrack to launch Cyberjaya SoHos by end May

CYBERJAYA: Suntrack Development Sdn Bhd and Prima Avenue Property Sdn Bhd plan to launch their new Kanvas SoHo joint venture in Cyberjaya by end-May, said Suntrack project director James Tan.

The SoHos, which are now open for registration and said to be “quite affordable”, are targeted at first-time property buyers, entrepreneurs, singles and couples working in Cyberjaya, he told reporters at a project briefing recently.

“There is potential for yields of up to 6% based on our surveys of comparable properties in the area,” said Tan.

He said the population of Cyberjaya, who are employees of companies primarily in the IT and service industries, is currently 52,000, but it is set to double by 2020.

He added the project has attracted much interest from the public.

The freehold Kanvas SoHo has a gross development value of RM201 million and comprises 646 SoHos housed in two 30-storey towers and 16 retail lots on a 3.4-acre site (1.37ha) on Jalan Teknokrat 6.

Priced from RM260,000 to RM322,000, the SoHos offer built-ups of 484 sq ft and 485 sq ft and come partly furnished with built-in kitchen cabinets, branded hoods and hobs, two air conditioners, a water heater tank, fridge and parking bay.

Maintenance fees are RM180 per month.

Other facilities include a 25m infinity pool, dipping pool with jacuzzi and gymnasium, as well as meeting rooms, storage cubicles for rent and two sky lounges atop the SoHo towers.

Access to the SoHos will be controlled by security cards that limit residents’ access to only common areas, including the sky lounges, and their own floors.

About 150 parking spaces will be allocated to the shops.

“Ideally, we’re looking at four restaurants, a supermarket and launderette,” he said of the potential retail tenant mix.

The project is aiming for green certification from the Real Estate and Housing Developer’s Association.

Some of its green features include cross ventilation, a predominantly north-south orientation and rainwater harvesting for use in common areas.

Kanvas SoHo is due to be completed by June 2017.
This article first appeared in The Edge Financial Daily, on March 07, 2014.

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Construction begins on Freeport A’Famosa Outlet Village

MELAKA: The Freeport A’Famosa Outlet Village in Alor Gajah has commenced construction after Tun Mohd Khalil Yaakob, the Yang di-Pertua Negeri of Melaka, broke ground in a ceremony last month.

The development, a partnership between A’Famosa Group’s wholly-owned subsidiary Langkah Realiti Sdn Bhd and Freeport Retail, a European developer, will have an estimated gross development value of RM190 million and a gross land area (GLA) of 310,000 sq ft (28,800  sq m).

Chris Milliken, the commercial director of Freeport Retail, said he is looking forward to bringing the Freeport outlet shopping experience to central Malaysia.

“We will offer premier designer fashion brands, casual wear, accessories and sports brands at low prices ... [with the development having] the added footfall benefit and synergy of two popular leisure and tourist destinations on its doorstep,” he said.

The Freeport A’Famosa Outlet Village will be next to A’Famosa Resort, a 520ha golf and leisure resort. Phase 1 will cover a GLA of 175,000 sq ft and feature more than 80 retail units, 1,200 parking bays as well as an exhibition and event hall. It is slated to open in April, 2015.

Julian Lau, director of Langkah Realiti, said that the joint venture with Freeport Retail is a major step forward for the retail industry in the region with long-term positive contributions to the state and local economy.

The project, which is expected to generate jobs for over 600 people, will be developed over three phases with Phase 2 spanning 62,000 sq ft of GLA and Phase 3, 73,000 sq ft. Freeport A’Famosa Outlet Village, with its strategic location and merchandise from international brands with savings of between 30% and 70%, is expected to be a major shopping destination.

The outlet will be designed as a single-level, village-style development with a Dutch colonial theme to reflect Melaka’s image as a historical town. The project will emphasise customer care with a VIP lounge, valet parking, gift wrapping and other personal shopping services.

The development will have a spillover from A’Famosa Resort’s two million visitors annually, a catchment of 9.3 million people from the Klang Valley, Negeri Sembilan and Melaka, as well as from the 14 million visitors who visit Melaka annually.

The site is accessible via the North-South Expressway and the Alor Gajah-Simpang Ampat interchange and is a 55 minute-drive from Kuala Lumpur.

A’Famosa Resort is a one-stop centre for business and pleasure. It offers an international championship golf course, a water theme park, animal safari, cowboy town, and hotels and villas.


This article first appeared in The Edge Financial Daily, on March 07, 2014.

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MRT to generate GNI of between RM3b and RM4b

KUALA LUMPUR: Malaysia’s Mass Rapid Transit (MRT) project looks to generate a gross national income (GNI) of between RM3 billion and RM4 billion per year, said Datuk Sri Sufri Mohd Zin in his speech at the 41st Master Builders Association Malaysia (MBAM) and International Federation of Asian & Western Pacific Contractors’ Association (IFAWPCA) convention from March 2 to 5 in Jakarta, Indonesia.

“The new MRT line is expected to raise property values by an estimated RM300 million in gross development value, broaden house buyers’ choices, expand developers’ projects to new areas, increase pedestrian accessibility and improve amenities [among others],” he added.

The MRT line will significantly improve rail-based public transport in the Klang Valley, and create more than 130,000 jobs in its construction.

The MRT project, one of the largest under the 10th Malaysian Plan, is scheduled for completion by 2017. It will cover 51km and will have 31 stations and three provisional stations for future development.

Sufri, who is MBAM vice-president and IFAWPCA chief delegate said: “Superior and well maintained infrastructure [will] attract the best talent as well as dynamic businesses seeking reliable connectivity and a high [standard] of living for its employees.”

He also urged the government to quickly consider implementing other planned mega infrastructure projects such as the High Speed Rail line to Singapore, and the second and third lines of the MRT to ensure optimum and efficient use of resources.

Sufri advised delegates to disseminate the knowledge gained from the convention to improve service delivery in the construction value chain.

IFAWPCA promotes international fellowship and cooperation, better relationships between governments and contractors in the region, and improved working arrangements in the construction industry.

Among the delegates that attended the convention were senior general manager of the Construction Industry Development Board Malaysia, Megat Kamil Azmi Megat Rus Kamarani, MBAM honorary life president, Tan Sri Dr Yeoh Tiong Lay, president of Persatuan Kontraktor Melayu Malaysia, Datuk Haji Mokhtar Samad and president of Sabah Builders Association Choo Kim Min.


This article first appeared in The Edge Financial Daily, on March 07, 2014.


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UK apartments to be launched in Kuala Lumpur

KUALA LUMPUR: UK developer English Rose Estate Ltd will be selling its latest premium residential product called Rupert Street to the Malaysian market over this weekend in Kuala Lumpur.

“Rupert Street will appeal to [Malaysian] investors looking for prime, central London Zone 1 locations with the highest specifications and designs,” said Ockert Van Den Berg, the chief executive officer of English Rose Estate.

Rupert Street is in Soho, one of London’s most sought-after locations, and comprises two leasehold buildings offering 11 studio flats, 19 one-bedroom flats and four two-bedroom flats with built-ups of between 118 sq ft and 649 sq ft. Selected apartments offered to the Malaysian public start from £527,100 (RM2.8 million).

All apartments will have fully fitted kitchens with integrated appliances. They will be near public amenities such as world-class restaurants, shopping facilities and lifestyle centres.

They are also near Trafalgar Square, Piccadilly Circus and Leicester Square’s underground station, as well as the University of Central London, the London School of Economics and King’s College. The apartments offer Malaysians a rare opportunity to invest in London property, especially one in Soho, a central location within the city.

Rupert Street is expected to be completed in the first quarter of 2015.

English Rose Estate was established in 2001 and specialises in urban and brownfield regeneration for residential, commercial and mixed-use development and investment schemes. Its assets are in Mayfair, Marylebone and Fitzrovia.

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Seaview sets its sights on Iskandar Malaysia, Rapid

JOHOR BARU: Fresh from acquiring 51% of Damansara Realty Bhd, Johor-based Seaview Holdings Sdn Bhd has set its sights on the opportunities present in Iskandar Malaysia and Pengerang.

Its chairman Datuk Daing Abdul Malek Daing Abdul Rahaman said, Seaview was vying to be actively involved in the fast-developing southern economic corridor and the Refinery and Petrochemical Integrated Development (Rapid) in Pengerang.

National oil company, Petroliam Nasional Bhd (Petronas) has committed RM60 billion to develop Rapid.

“Seaview plans to rejuvenate Damansara Realty’s property and construction divisions,” he said in a statement issued after the share sale agreement (SSA) between Seaview and Johor Corp (JCorp) here, yesterday. JCorp was the owner of Damansara Realty before selling its stake to Seaview for RM79 million.

According to Daing Malek, the immediate plan is to further develop the businesses of Damansara, namely the parking business (Metro Parking (M) Sdn Bhd), facilities management (TMR Urusharta (M) Sdn Bhd), hospital consultancy (Healthcare Technical Services Sdn Bhd), and industrial cleaning.

“I strongly believe Damansara Realty has untapped potential for growth and value increment for its shareholders,” he said.

The acquisitions of Damansara Realty shares will trigger a mandatory general offer (MGO), where both parties expect the conditions set out in the SSA to be satisfied within a month, said Damansara Realty in the statement.

“It is the intention of Seaview to maintain listing Damansara Realty upon completion of the MGO and to enhance the value proposition of its investment,” it said. — Bernama


This article first appeared in The Edge Financial Daily, on March 07, 2014

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LBS Bina sticks to affordable, middle-range homes

KUALA LUMPUR: Property developer LBS Bina Group Bhd will continue to focus on the affordable and middle-range residential market this year and in 2015, said managing director Datuk Seri Lim Hock San.

“There is a growing demand from home-occupied buyers and LBS Bina will continue to support the government’s efforts to provide more options for the middle income bracket,” he said in a statement yesterday.

Lim said although the group has expanded into the high-end property sector with its flagship D’Island Residence in Puchong, Selangor, it continues to build affordable homes in the country.

LBS Bina was named “Best Company for Leadership of Property Development” at the 2014 International Alternative Investment Review (IAIR) Awards in Hong Kong recently.

“We take pride in receiving the acclaimed 2014 Best Company for Leadership in the Property Development category for Malaysia. Our aim is to be an internationally recognised developer and we regard this award as a testament from the market that we are on the right track,” said Lim.

He attributed the group’s success to its value proposition in “building inspiring lifestyle spaces that enhance community living”.

“We are not merely building homes, we are building communities,” said Lim.

The IAIR Awards recognise Asian companies based on eight judging criteria. They are sustainability, business results, leaderships in the field, strategic development, high quality of service, innovation in the field, education and green initiatives.

Award recipients were selected by over 50,000 IAIR readers, international teams of journalists and industry leaders through independent nomination questionnaires.


This article first appeared in The Edge Financial Daily, on March 07, 2014.

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