Plan for 2 convention centres in Iskandar to capture Mice market

JOHOR BARU: Two new international convention centres will be built in Iskandar Malaysia within the next three years to capitalise on the meetings, incentives, conventions and exhibitions (Mice) market.

Iskandar Regional Development Authority (Irda) chief executive officer Datuk Ismail Ibrahim said the multi-billion ringgit projects would be located in Medini, Nusajaya and the Senai-Kulai flagship development zones.

“The Mice market is rapidly growing in Iskandar Malaysia in recent years but we lack facilities of international levels to cater to the needs,” he said after witnessing the signing of the hospitality partnership between Metropoint TAFE College and Double Tree by Hilton Hotel, Renaissance Hotel and Traders Hotel here yesterday.

He said the Persada Johor International Convention was not enough to cater to the Mice segment.

Ismail declined to provide details on the upcoming convention centres including the gross development value and the developers.

“It is good to have them (the centres) in Nusajaya and the Senai-Kulai zones instead of the city centre as we need to spread the Mice business to other zones in the economic region,” he said.

He said there was a shortage of hotel rooms in Iskandar Malaysia as the 6,600 hotel rooms to be available by 2015 would be insufficient to cater to tourist arrivals.

“Hotels in Iskandar Malaysia recorded good occupancy rates and we need 5,000 rooms especially five-star hotels for business travellers,” said Ismail.

Most of foreign and domestic tourists visiting Singapore preferred to stay in Johor Baru as the hotel rates here were much cheaper than those in the republic.

Launched on Nov 4, 2006, Iskandar Malaysia covers 2,217 sq km and is three times bigger than Singapore and double the size of Hong Kong.

It is divided into five flagship development zones – the JB City Centre, Nusajaya, Eastern Gate Development Zone, Western Gate Development Zone and Senai-Kulai.

For more information on Building and Construction seminars, please visit www.asiapacificevents.com 

Guocoland to launch projects worth RM2.5bil over 3 years

BY CHERYL POO

KUALA LUMPUR: Guocoland Malaysia Bhd is planning to build and sell properties worth RM2.5bil over the next three years in the Klang Valley area.

The projects include a township development in Rawang, a mixed project in Sepang and a corporate office venture in Petaling Jaya.

The planned new launches will add to the group’s ongoing RM2.5bil flagship Damansara City development, which is expected to be fully completed by mid 2016.

The construction of Damansara City was awarded to two South Korean contractors – SsangYong Engineering & Construction Co Ltd and Daewoo Engineering and Construction Co Ltd.

SsangYong is undertaking the construction of two upscale residential blocks (DC Residency), elevated parking as well as five to six levels of basement car park, for RM431.1mil.

Daewo, meanwhile, will build a 300,000-sq ft four-storey retail mall, a five-star hotel and two office towers – for RM538mil. The hotel will be run by Clermont Kuala Lumpur.

“I expect DC Residency to be fully sold by next year. We are actually not in a hurry as prices will go up after the mass rapid transit lines are ready in the area,’’ managing director Tan Lee Koon told reporters after the topping out ceremony of the DC Residency project yesterday.

Guocoland has a total 4,046ha of land-bank in Petaling Jaya, Rawang, Cheras and Sepang. It also owns some 1,618ha in Jasin, Malacca.

Tan said phase one of the terrace housing project in Sepang had been fully taken up and that construction of phase two would begin mid next month.

“These projects will bring about a substantial stream of recurring income to our books,” he added.

For the third quarter ended March 31, 2014, Guocoland’s net profit soared 79% to RM15.71mil from RM8.79mil last year due to more recognised profit from PJ City and Damansara City.

For more information on Building and Construction seminars, please visit www.asiapacificevents.com

YTL Hotels launches Kasara brand in Japan

PETALING JAYA: YTL Hotels will be launching Kasara, a new hotel brand in Niseko Village in Hokkaido, Japan in December, according to a press release on Wednesday.

The brand will make its debut with the opening of the Kasara Niseko Village Townhouse within the group’s existing integrated ski resort, Niseko Village on Dec 1. This hotel component will be a new build comprising eight units of 3-bedroom townhouses.

A stay here will begin at US$2,000 (RM6,359) per night. The luxury townhouse hotel will provide bespoke services and priority privileges exclusively for its guests.

The Kasara Niseko Village Townhouse will add to the existing inventory of accommodation within the village, namely Hilton Niseko Village and The Green Leaf Niseko Village. Construction on the hotel started in May and is slated for completion in November.

Beyond the eight initial townhouses there will be an option to pre-select and purchase freehold townhouses in the next development phase.

Kasara will encompass a collection of unique luxury hotels, resorts and residences in exotic locations to be opened globally including Hokkaido, Japan; Koh Samui, Thailand; and Pulau Tiga in Borneo.

“It is with great excitement that we now reveal Kasara,” said Luke Hurford, vice- president of sales and marketing at YTL Hotels. “The privilege of early morning access to hidden powder stashes guided by a local Niseko Village expert, native fishermen in long-tailed boats serving up a sumptuous seafood feast in Koh Samui, holistic immersion into natural mud baths in Borneo and free-diving into the aquamarine waters of the Coral Triangle — these are some of the authentic experiences which await the Kasara guest, alongside stunning properties in exotic locations.”

The new brand will add to YTL Hotel’s current collection of 24 resorts, hotels and spa villages. “Kasara will expand its presence to Koh Samui in early 2016 and Pulau Tiga, shortly thereafter.

“We will definitely be looking into growth in other exotic destinations if they inspire the Kasara brand DNA in offering an experience of luxury, authenticity and timelessness,” says Hurford.

Targeting affluent travellers, Kasara will differentiate itself from other brands by the incorporation of local influences, culture and tradition into their hotels in order to create a compelling experience that resonates with each destination. The design of each hotel under the brand will be driven by the location’s environment, such as alpine, rainforest or beach.

YTL Hotels is the hospitality arm of YTL Corp Bhd and it owns and manages resorts, hotels and spa villages in Malaysia, Thailand, Indonesia, China, Japan, France, and the UK. The hospitality arm has seen much expansion over the past decade with the acquisition of the Niseko Village, the Marriott hotels in Sydney, Brisbane and Melbourne in Australia, as well as the upcoming heritage-listed The Gainsborough Bath Spa in the UK.

An artist’s impression of the interior of Kasara Niseko Village Townhouse.

For more information on Building and Construction seminars, please visit www.asiapacificevents.com

Details of Ho Hup’s Bukit Jalil development to be out soon

KUALA LUMPUR: Details of the 50-acre (20.23ha) development in Bukit Jalil, dubbed “Pavilion 2”, to be co-developed by Ho Hup Construction Co Bhd and Malton Bhd will be out by the third quarter of this year, according to Ho Hup’s management. “The driver for our growth will be this joint venture (JV) project with Malton,” said Ho Hup’s chief executive officer (CEO) Derek Wong, adding that Malton would be making an announcement on the development over the next few months. The Bukit Jalil development that comprises a huge shopping mall and several blocks of apartments is estimated to have a total gross development value (GDV) of RM4.2 billion. Under a JV arrangement, Malton will take the lead and fund the cost of development, whereas Ho Hup will provide the said piece of land in return for an 18% share of the GDV. While the 50-acre piece is for the JV with Malton, Ho Hup has actually started developing an adjacent 10-acre on its own, with a GDV of RM1.2 billion. Ho Hup was uplifted from being a PN17 firm in May this year, after it completed its financial regularisation exercise. Wong, speaking after the firm’s annual general meeting (AGM) yesterday, said that the construction and property firm is doing much better now and that it is on target to achieve double-digit growth. The group posted a net profit of RM22.5 million for the financial year ended Dec 31, 2013, on revenue of RM149.4 million. A bulk of the earnings was from the development of the 10-acre tract in Bukit Jalil, while the remaining was from its construction projects, both locally and overseas. “We have started building the basement on our 10-acre tract in Bukit Jalil. Our shops have been 100% taken up and our small offices versatile offices (SoVos) are about 70% taken up. To date, we have achieved total sales of close to RM400 million from the development,” said Wong. On its construction segment, the CEO said the group’s order book stood at RM400 million with projects tendered worth RM2 billion. “We will be happy with 20% of success rate from the projects tendered,” he added. While its Bukit Jalil development is gathering momentum, Ho Hup is looking to replenish its land bank mainly in the Klang Valley, the outer area of Klang Valley and Johor, said Wong, who also pointed out that the firm would be looking at areas such as Semenyih and Rawang. The group has also recently ventured into property and construction projects in Myanmar. Its subsidiary, Ho Hup Construction Company (Labuan) Ltd has inked a JV agreement with Myanmar’s construction firm Zaykabar E&C Co Ltd on June 5 to incorporate a new firm called Ho Hup (Myanmar) E&C Co Ltd. Wong said, “We should be doing our maiden launch for a residential project in Myanmar this October. The GDV of the project is estimated at about US$150 million (RM485.06 million) on a 50-acre tract of land.” This article first appeared in The Edge Financial Daily, on June 19, 2014. For more information on Building and Construction seminars, please visit www.asiapacificevents.com

Landmarks to launch phase one of Treasure Bay Bintan in 4Q

SINGAPORE: Landmarks Bhd will launch the first phase of its Treasure Bay Bintan in Bintan, Indonesia in the fourth quarter (4Q) of this year.

The development, which consists of several themed resorts and other components, sits on 338ha of leasehold land and has an estimated gross development value (GDV) of US$3.5 billion (RM11.27 billion). The entire development will be built with strategic partners and investors.

“We’re proud of this flagship project in Bintan as it will be the preferred island destination in Asia. We believe the wellness and health concept the resort carries, with two internationally known wellness resorts such as Canyon Ranch and Chiva-Som being part of our health resort, people will enjoy their time in Treasure Bay Bintan,” said Treasure Bay Bintan Pte Ltd chief operating officer Paul Leong in a signing ceremony between Landmarks Bhd and the two internationally-renowned wellness resorts in Singapore recently.

The group is expecting 1,500 rooms to be added to Bintan’s current 1,375 rooms upon the completion of Treasure Bay Bintan’s first phase.

Its first phase, spanning 90ha, will comprise 6.3ha of crystal clear water lagoon, aquatic sports facilities, bars and restaurants, retail areas, and eight hotels and a wellness resort managed by Canyon Ranch. The first phase also will have a 20ha organic farm producing fruit and vegetables.

According to Landmarks, 60% of the hotels will be operated by well-known international and boutique operators.

“It is intended that Treasure Bay Bintan’s food and beverage outlets will also benefit from the cultivation of free-range poultry and freshwater farming,” said Leong.

The entire development of Treasure Bay Bintan has three phases and the resort will be fully developed in 20 years.

Landmarks is expected to launch the second phase of Treasure Bay Bintan in the next three years. The second phase is currently in the design stage, and construction is scheduled to commence in 2016 ahead of its launch.

The second phase will comprise an iconic building known as the Ring Resort, water villas, a second wellness resort known as Chiva-Som, and commercial and residential spaces.

The group expects tourist arrivals into Bintan to double by 2017.

“With other developments across Bintan, it is the intention of stakeholders to offer not less than 5,000 rooms by 2017, competing with Langkawi that has 7,000 rooms currently.

“Bintan International Airport, which is scheduled to be operational by 2016 will add to and improve connectivity of Bintan to Singapore, Malaysia and the rest of Indonesia,” he said.


This article first appeared in The Edge Financial Daily, on June 20, 2014.
 

For more information on Building and Construction seminars, please visit www.asiapacificevents.com

Hap Seng unit sells 2 land parcels in Sabah for RM278m

KUALA LUMPUR: Hap Seng Consolidated Bhd’s unit, Hap Seng Properties Development Sdn Bhd, has entered into two separate sale and purchase agreements to dispose of two parcels of leasehold land in Sabah for RM278 million.

“The proposed disposals are in the ordinary course of business of the vendor which is a company principally involved in property development.

“They are in line with the group’s policy to divest non-strategic properties in Sabah and Sarawak to enable it to position itself in prime locations within Peninsular Malaysia,” it said in a filing with Bursa Malaysia yesterday.

The proposed disposals are expected to be completed in the second quarter of 2014. — Bernama


This article first appeared in The Edge Financial Daily, on June 20, 2014.

For more information on Building and Construction seminars, please visit www.asiapacificevents.com

 

Bina Puri unit looks to revive more abandoned projects

PETALING JAYA: Sumbangan Lagenda Sdn Bhd, a 55% subsidiary of Bina Puri Holdings Bhd, has successfully revived an abandoned mixed development in USJ Subang after investing almost RM200mil over the past five years.

Managing director Jason Yam said the project, called Main Place@USJ 21, cost RM80mil to redevelop but the company had also added investments to upgrade facilities and design.

The gross development value is RM291mil, with a total sellable area of 880,000 sq ft.

The 4.3-acre project was no mean feat and Yam believes Main Place offered a more fulfilling business strategy than the conventional build-from-the-ground.

“We took this on because we saw money to be made,” he said in an interview.

Among the plus points, he noted that there were ready buyers who were now finally getting their investments’ worth as well as a good location.

“The four blocks of serviced apartments were already 90% sold out when we took over the project. We now only have two units left,” he said of the 1,211-unit apartment blocks.

“Fifteen years ago, the buyers bought their units at RM148 per sq ft but now the going rate in the USJ area is about RM600 per sq ft,” Yam said.

The original concept for the development was a time-sharing hotel and the units do not come with car park bays. Sumbangan Lagenda, therefore, has 1,500 carpark bays to earn rental from.

Below the serviced apartments is a retail podium which the company will keep for recurring income. The mall has 130 retail lots, 85% of which are already rented out when it was opened in March this year. The developer expects full occupancy by September this year.

The total leasable area is 240,000 sq ft across the 3.5-floor mall. The rental rates are going at RM5.80 per sf.

“We are open to taking on other similar abandoned projects, using this experience as a stepping stone. The cashflow is better,” he said.

The developer is currently considering several high-rise residential or mixed development projects that have been abandoned in the Klang Valley and Penang.

He added that greenfield projects were not its focus now as new land is usually more expensive or may be located in less attractive areas.

Yam revealed that three other developers, among which two are listed companies, had approached him to buy over Main Place when Sumbangan Lagenda had first taken over the project from the previous owner.

“We are the second white knight actually, the first one was a smaller developer and did not have the resources for it,” Yam said.
Main Place is easily accessed from Lebuhraya Damansara-Puchong, and the future MRT will be a 250m walk away.

Sumbangan Lagenda is a sponsor for The Star Business Awards (SOBA) 2014.

“SMEs need to strive for excellence and not underestimate what they are capable of,” he said.
In conjunction with the awards, The Star will also hold the Learning Series workshops focused on the GST implementation in Penang (June 24), Petaling Jaya (June 26), Ipoh (August 7) and Malacca (August 14) conducted by BDO.

Participation for the awards is open to all local enterprises that are not part of a multinational group or listed group incorporated in Malaysia with foreign equity not exceeding 50%. For more information on the awards, call The Star Events Dept at 03-7967 1388 ext 1240 (Melissa)/1475 (Pei Wen) or visit www.soba.com.my.

For more information on Building and Construction seminars, please visit www.asiapacificevents.com