GAIM seeks to invest more in Iskandar

Berinda Group chief executive officer and Tanjung Bintang group managing director Frank Goon Swee Kheong (right) briefing Johor Baru mayor Jaafar Awang (centre) and Charlie Taka on the Molek Pine 3 Tower.

The Macau firm has just acquired two condo blocks there for RM200mil

JOHOR BARU: Global Asia Investment (Macau) Ltd (GAIM) is looking to invest in more property projects in Iskandar Malaysia following its initial foray into Johor Baru market.

Chief executive officer Charlie Taka said the prospects in Iskandar Malaysia were good and the company wanted to benefit from long-term growth of Malaysia's first economic growth corridor.

Headquartered in Macau, GAIM is an asset-building consulting company with 10,000 members. It assists its clients, who are mostly Japanese, in investing overseas.

“Iskandar's close proximity to Singapore and its strategic location in the region is the major selling point to attract investors from all over the world,'' Taka told StarBiz at the ground-breaking ceremony of Molek Pine Tower 3 project here recently.

He said like Chinas' Shenzhen, which benefitted from the economic spillover of Hong Kong and Macau, Iskandar would benefit from Singapore's position as an international trade and financial centre.

He expects Iskandar to be fully developed in 10 years although Iskandar Regional Development Authority, under its Comprehensive Development Plan, has set a target for the economic corridor to become an international metropolis in 2025.

Meanwhile, GAIM has purchased the two condominium blocks at Molek Pine Tower 3 from Tanjung Bintang Sdn Bhd for RM200mil. The blocks would be used for its “Malaysia My Second Home” programme for its Japanese clients.

The project comprises a 28-storey tower block with 212 units and a six-storey block with 36 units on a 2.42ha site in Taman Molek.

The units will have built-up areas of 1,300 to 2,300 sq ft. The condo, with selling price from RM500,000, is expected to be completed in two years.

It is being developed by Tanjung Bintang, a unit of the Berinda Group, which in turn is a property development arm of the Kuok Group. Taman Molek was launched in 1990 and now has about 5,000 residential and commercial units.

“With European and the US economies still have a long way to recover and Japan's economy not in a good shape either, we are focusing on China and Asean countries for investments,'' said Taka.

He said GAIM would look at several options when investing in Iskandar including joint ventures with local partners, buying properties en bloc and acquiring stakes in companies.

Taka said apart from Iskandar, the company also had property investments in Kuala Lumpur and Penang.

GAIM, which has a revolving fund of RM500mil, has similar investments in Canada, China, Cambodia, Europe, Hong Kong, Japan, Macau, Thailand, the United States and the Philippines.

By The Star

Challenging times ahead for Iskandar

JOHOR BARU: Iskandar Regional Development Authority (Irda) chief executive officer Ismail Ibrahim says attracting new investments to Iskandar Malaysia is going to get tougher and more challenging.

He said although the country's first economic growth corridor was making significant progress and moving in the right direction, albeit uncertainties in the global economy, Iskandar could not afford to rest on its laurel.

“The intensity of the competition is becoming greater and we have to prove our sceptics wrong that Iskandar is indeed taking shape as planned,'' Ismail said in an interview with StarBiz.

He said the challenge was not only in attracting new investments to Iskandar, but also receiving financial support from the Government for infrastructure development projects.


Ismail Ibrahim … ‘We have to prove our sceptics wrong, that Iskandar is indeed taking shape as planned.’

Under the Comprehensive Development Plan 20062025, Iskandar is set to transform into a metropolis of international standing.

Iskandar, launched on Nov 4, 2006, is located in the southern most part of Johor and spans over 2,217 sq km. It is three times bigger than Singapore and has five flagship development zones JB City Centre, Nusajaya, Eastern Gate Development, Western Gate Development and Senai-Skudai.

The corridor has attracted investments totalling RM67.68bil up to November last year. A total of RM39.42bil, or 58%, of the total investment was from domestic investors and the balance from foreign investors.

Of the overall investment received, RM6.28bil was from the public sector; RM14.45bil went to tourism, utilities and others; RM20.25bil for properties; and RM26.38bil for the manufacturing sector.

During the same period, RM27.61bil or 40.8% of the total committed investments have been spent on development projects in the region.

Ismail said Irda would continue to work closely with government agencies like Malaysian Industrial Development Authority and Malaysia External Trade Development as well as foreign missions to promote Iskandar.

He said Irda also had a good working relationship with the Johor State Investment Centre (JSIC) although Irda's coverage was limited to Iskandar only, while JSIC covered the entire state.

Irda is the regulatory body mandated to plan, promote and facilitate the development of Iskandar. Prime Minister Datuk Seri Najib Razak and Johor Mentri Besar Datuk Abdul Ghani Othman are the co-chairmen.

“We are mindful of the growing Asia-Pacific region and we are coming out with programes to attract more investments from China, India, Indonesia and Singapore,'' Ismail said.

He said besides these countries, Irda would continue to woo investors from Europe, the United States and the Middle East, and would likely to extend its reach to Brazil, Russia and South Africa.

Ismail said although the economies of Europe and the United States were still in the doldrums, Irda believed that they still offered good investment opportunities for Iskandar as not everyone there was affected by the downturn.

He said Iskandar was now in the second phase of its road map which focused mainly on attracting new investments and the completion of phase-one projects.

Ismail said Irda would have more outreach programmes this year with the private sector, which would not be limited to meeting them as groups in seminars or conferences, but would be on one-to-one basis.

“We want to engage them better and intensively so as to share our plans for the private sector in Iskandar and vice versa,'' he said.

Ismail said the private sector stakeholders included property developers, investors, chambers of commerce, small and medium-scale enterprises and land owners.

On why the Government decided to allocate an additional RM600mil for Iskandar in November from the RM339mil announced by Najib in Budget 2011, he said the Government must have its own reasons for that.

Ismail said the bulk of the allocation would be spent this year on ongoing projects like the New Coastal Highway, Iskandar Malaysia public housing project and river cleaning works.

“We believe (the extra allocation) has got to do with our timely delivery of our infrastructure projects and the commitment shown by us and the new projects already in the pipeline,'' he said.

By The Star

SP Setia to expand Johor landbank

KUALA LUMPUR: SP Setia Bhd, which has established a strong foothold in Johor, continues to expand its landbank in the state by acquiring a land from Kenyalang Property Development Sdn Bhd for RM125.8 mil.

In a filing to Bursa Malaysia yesterday, SP Setia said its subsidiary, Setia Indah Sdn Bhd, had entered into an agreement with Kenyalang for the acquisition, which is expected to conclude during the financial year ending Oct 31, 2011. It plans to develop a mixed residential development located in the Tebrau corridor.

By Bernama

Setia Indah to acquire 106ha in Johor Baru

SP SETIA Bhd’s wholly-owned unit Setia Indah Sdn Bhd has entered into a conditional sale and purchase agreement with Kenyalang Property Development Sdn Bhd to buy 106ha in Johor Baru, Johor, for RM125.8 million.

It told Bursa Malaysia yesterday that it intends to develop a mixed residential development project on the land.

By Business Times

Land re-pricing to boost UEM Land, Tebrau

UEM Land Bhd, Tebrau Teguh Bhd and Mulpha International Bhd are among Malaysian property companies that will benefit from a “re-pricing” of the land and property values in the southern Johor state, according to RHB Research Institute Sdn Bhd.

“The re-rating of the Johor property play started following the negotiation of the land swap deal between Singapore and Malaysia,” RHB said.

“The re-rating process was further accelerated by the introduction of the Government’s economic transformation program.”

By Bloomberg

RM500m Azea latest project in Danga Bay

A RM500 million high-end mixed development known as Azea Properties will be coming up on a 1.7ha site in Danga Bay, Johor Baru, one of the the key flagship zones within Iskandar Malaysia.

A joint-venture agreement to develop the commercial project was signed among Imperial Marine Pte Ltd, Danga Bay Sdn Bhd and Pembinaan Sahabatjaya Sdn Bhd in Johor Baru yesterday.

Johor Mentri Besar Batuk Abdul Ghani Othman, who is also the joint-chairman of the Iskandar Regional Development Authority, witnessed the signing ceremony. .

Imperial Marine, a Singapore-based property investment company helmed by Tan Yang Po, will invest RM150 million or 30 per cent of the cost of the project, while Danga Bay will put in RM185 million (37 per cent).

Pembinaan Sahabatjaya Sdn Bhd will invest RM165 million, or 33 per cent of the project cost.

Danga Bay is a waterfront master developer with landbank over 182ha along the Straits of Johor, while Pembinaan Sahabatjaya, a building and civil engineering company, has successfully undertaken projects worth over RM1.3 billion since 1999.

Tan, also the chief executive officer of Azea Property Investment Pte Ltd, has property investments around the world including in the UK and the US, where over RM50 million worth of its choice residential properties have been snapped up.

The proposed waterfront development in Danga Bay would comprise 700 units of serviced apartments spread over four tower blocks. Selling prices range between RM650 and RM880 per sq ft.

Retail spaces will also be incorporated into the buildings.

The latest joint-venture comes on the heels of several major recent investments in Danga Bay, including a RM40 million hotel by Tune Hotels Sdn Bhd and a RM150 million four-star hotel to be built by a Kuala Lumpur based developer.

By Business Times

Malaysia-S'pore firm to develop Johor poject

Singaporean and Malaysian investors today announced a partnership to jointly develop a RM500 million new waterfront residential and commercial project in Johor.

To be known as Azea Properties, the high-end development will be coming up on a 1.68 hectare site in Danga Bay – one of the key flagship zones within Iskandar Malaysia.

The Singapore investment, valued at an estimated RM150 million, is by Imperial Marina Pte Ltd – a property investment company helmed by businesswoman Tan Yang Po.

The company is a special purpose vehicle set up by Tan to explore and seize investment opportunities in the booming Iskandar Malaysia real estate sector.

According to a statement today, she will be teaming up with Danga Bay Sdn Bhd (37 per cent) and Pembinaan Sahabatjaya Sdn Bhd (33 per cent) to develop the project through a joint-venture company – Para Impiana Sdn Bhd.

Witnessing the joint venture signing ceremony in Johor Baru today was Menteri Besar Datuk Abdul Ghani Othman, who, with the Prime Minister, is joint-chairman of the Iskandar Regional Development Authority (IRDA).

Danga Bay is a waterfront master developer with a land bank of over 450 acres along the Straits of Johor, while Pembinaan Sahabatjaya, a building and civil engineering company, has successfully undertaken projects worth over RM1.3 billion since 1999.

Tan, who is also chief executive officer of Azea Property Investment Pte Ltd, has property investments around the world.

Her latest foray was into the United Kingdom and the United States, where over RM50 million worth of choice residential properties were snapped up.

This joint-venture comes on the heels of several major recent investments in Danga Bay, including the RM40 million hotel by Tune Hotels Sdn Bhd and a RM150 million 4-star hotel project to be built by a Kuala Lumpur-based developer.

In August this year, property developer Dijaya Corporation Bhd had also entered into a 60:40 joint venture with Danga Bay Sdn Bhd (DBSB) subsidiary, Iskandar Waterfront Sdn Bhd, to develop high end condominium and retail properties on 37 acres of land.

DBSB chief executive officer Datuk Lim Kang Hoo said the latest joint venture with Imperial Marina was a clear signal of the growing confidence of Singapore investors in opportunities across the causeway since the Prime Ministers of Malaysia and Singapore announced a resolution to the long-standing issue of Malaysian railway land in the Republic earlier this year.

Lim also noted a marked increase in investment interests since Khazanah Nasional Berhad and Temasek Holdings Limited announced the setting up of a joint-venture company to explore iconic property developments in Iskandar Malaysia.

Meanwhile, Tan said the proposed waterfront development in Danga Bay would comprise 700 units of serviced apartments spread over several tower blocks.

Retail space would also be incorporated into the buildings.

“All available units in one of the tower blocks has already been booked even before the project launch,” she disclosed, with selling prices ranging from RM650-RM880 per sq ft.

She said the premier seafront project offered exceptional value because of its prime location and proximity to Singapore.

Most of the prospective buyers, she admitted, would be members of the Azea Property Investment Club - a 1,000-strong member club of ordinary individuals who invest in properties around the globe.

The group recently acquired £3 million (about RM15 million) worth of 12 Victorian-styled apartment units in London and another 200 units of landed properties valued at over US$7 million (about RM21.7 million) in Houston, USA – all of which were going for sale below market value.

“We’re also looking into developing commercial properties on an adjoining parcel of land in Danga Bay,” she said.

By Bernama

Johor developers face future challenges

JOHOR BARU: Demand for residential properties is still good in Johor but developers will face challenges in the coming years due to labour shortage and a hike in building material prices.


Simon Heng .... ‘The take-up rate for new houses in Johor is still good despite the increase in prices.’

Real Estate and Housing Developers Association (Rehda) Johor branch chairman Simon Heng said developers did not have much choice but to pass the additional cost to house buyers.

He said building materials costs had increased by 10% to 15% in the past two months, translating into higher selling prices for new houses, especially in Johor Baru.

The take-up rate for new houses in Johor is still good despite the increase in prices and hopefully the trend continues next year,'' Heng told StarBiz on Wednesday.

He said banks were still offering attractive home loans, including full-loan facility for first-time buyers with a monthly household income of less than RM3,000 as announced recently in Budget 2011.

He said developers should look at coming out with innovative packages, including gated-and-guarded precincts and high-speed broadband facilities, to attract buyers.

Heng said the construction industry was also facing labour shortage and had to depend on foreigners as locals were not interested to take up the job.

He said many Indonesians that had been working in the construction sector in Malaysia for more than five years had left home as the construction sector in the republic was booming.

He said despite having workers from Bangladesh, Pakistan and Vietnam, contractors still preferred Indonesians as they were more hardworking and easy to communicate with.

By The Star

RM27b investment spent in Iskandar Malaysia

A total of RM26.89 billion or 42 per cent of the committed investments of RM64.38 billion in Iskandar Malaysia have been spent on projects on the ground as at end of September.

A statement from the Iskandar Regional Development Authority (IRDA) said the 9th meeting of the Members of Authority (MoA) of IRDA, which was chaired by Prime Minister Datuk Seri Najib Tun Razak on Monday, was pleased that several key projects were on track and ready to commence operations in 2011/2012.

These include the Netherlands Maritime Institute of Technology (recruitment to start in 2011); Newcastle Medical University Malaysia (in October 2011); Johor Premium Outlets (in November 2011); LEGOLAND theme park in Medini North (2012); Lifestyle Retail Mall@Medini (2012); and Marlborough College Malaysia (2012).

Najib is the IRDA co-chairman with Johor Menteri Besar Datuk Abdul Ghani Othman.

The statement said Iskandar Malaysia's positive growth continued to be on track for 2010 with greater awareness locally and internationally.

This was achieved despite the weak worldwide economic growth last year but following a strong rebound of regional economies in 2010.

It said the meeting also discussed strategies to woo more local and foreign investments to Iskandar Malaysia.

IRDA members were also informed that Iskandar Malaysia has been in the forefront of implementing the government's Economic Transformation Programme (ETP), aligned with the New Economic Model (NEM).

Seven of the 12 National Key Economic Areas (NKEAs) under the ETP are being promoted in the region, it said.

The statement said several Entry Point Projects (EPPs) under the NKEAs not only offered business opportunities to local and foreign investors but also help develop Iskandar Malaysia to be "a strong and sustainable metropolis of internatioal standing".

The MoA noted that Iskandar Malaysia continues to attract interest from investors given its strategic location, strong brand, competitive cost of doing business, transparency and good investment environment.

The economic corridor attracted 58 per cent domestic and 42 per cent foreign investments, with positive outlook from Singaporeans, both in the manufacturing and services sectors.

IRDA said it is also targeting at more impactful promotions and marketing activities next year.

The MoA was also given updates on the progress of the Johor Baharu Sentral Business District Transfrmation Plan and the Iskandar Malaysia Human Capital Blueprint initiatives, among other matters.

By Bernama

RM700m boost for Iskandar Malaysia

The government has agreed to allocate an additional RM700 million for rolling plans for Iskandar Malaysia over the next two years.

Johor Menteri Besar Datuk Abdul Ghani Othman said the amount is an addition to the RM339 million set aside to the southern Johor growth region during the recent tabling of Budget 2011.



"Yesterday, Prime Minister Datuk Najib Razak agreed to add funds for rolling plans with another RM700 million for Iskandar Malaysia programmes," Ghani said in his speech at the launch of the Kota Iskandar Tourism Programme and Sinar Jauhar gallery in Nusajaya yesterday.

He did not elaborate on the rolling plans. Sources said the funds may be for various infrastruture projects and new investments which have not been announced by the government.

Najib is co-chairman of the Iskandar Regional Development Authority.

On a related matter, Ghani said , Nusajaya is set attract more tourists with the new guided tours for the Sultan Ismail Building which houses the state assembly in Kota Iskandar.

"In 2009, the building attracted 8,000 tourists, and between January 2010 and now, the tourist arrivals have risen by 30 per cent.

By Business Times

Skudai to get new RM500mil hub

Datuk Lim Kang Hoo (right) with Teras Hijaujaya Sdn Bhd director Lim Chern Herng looking at the model of the Danga Utama project.

Danga Utama commercial project is latest development in growth corridor

JOHOR BARU: Teras Hijaujaya Sdn Bhd, the developer of commercial project Danga Utama, wants to position the development as the new business hub in the Skudai growth corridor.

Chief executive officer Datuk Lim Kang Hoo said the Skudai growth corridor would derive immense benefits from its close proximity to Nusajaya and Danga Bay, the two main growth components in Iskandar Malaysia.

Spanning over 9,307ha, Nusajaya is one of the five flagship development zones in Iskandar Malaysia, the country's first economic growth corridor launched in 2006.

Our project is located just a few kilometres away from the Skudai exit of the North-South Expressway and Second Link to Singapore and also from Danga Bay, Lim said at the project's launch recently.

He said the company had, under phase one, sold 85% of the 129 three-storey shop offices with mezzanine floors priced from RM1.35mil.

Other components in phase one include six six-storey corporate office towers with selling prices from RM6.1mil.

Lim said the project on a 7.3ha site along Jalan Skudai and Jalan Sutera Danga would be completed in the next four to five years with gross development value of RM500mil.

He said phase two would have high-end condominium towers and retail outlets overlooking Sungai Skudai which would be rehabilitated under the 10th Malaysia Plan.

The Federal Government has allocated about RM300mil for a comprehensive river beautification programme which include dredging, widening and complete clean-up of filthy rivers in the country.

We want to repeat the success of Danga Bay in our Danga Utama project. Phase two will also see us introducing water taxi services from Danga Bay to the project here, said Lim, who is also Danga Bay Sdn Bhd CEO.

Located along Jalan Skudai, Danga Bay is now one of the most sought after addresses for waterfront development properties in Johor Baru, with Lim as one of the players behind the transformation of Danga Bay.

Upcoming projects in Danga Bay include three hotels, high-end condominiums, a marina, an international convention and exhibition centre, and office towers.

Iskandar Regional Development Authority has also chosen a waterfront area in Danga Bay for the wellness township development project in Iskandar.

Khazanah Nasional Bhd and Temasek Holdings Ltd will be jointly developing the project on the 202ha site.

By The Star

Growing appetite for investments

Medini is a mixed-development comprising three clusters – lifestyle and leisure, cultural and Iskandar financial district in Iskandar Malaysia, Johor. The three clusters are pivotal to the whole development of Nusajaya City.

Investors still committed to Iskandar Malaysia despite downturn, says Millennium Development

MILLENNIUM Development chairman Oussama Kabbani, whose company is involved in the development of Iskandar Malaysia, says the success of the growth corridor is its proximity to Singapore.


Oussama Kabbani ... ‘We are in a position to make the best of this recovery.’

Once the bullet train to Singapore becomes a reality, it will be possible to time one's journey to the city state. Even if it is delayed, it will happen. And the same goes for Medini, says Harvard-trained urban planner Oussama who was in Kuala Lumpur recently.

Medini is a mixed-development comprising three important clusters namely lifestyle and leisure, cultural and Iskandar financial district in Iskandar Malaysia, Johor. The three clusters are pivotal to the whole development of Nusajaya City.

When we first came three years ago, there was no housing, no Kota Iskandar, no shopping centres. In the last three years, the change has been unbelievable. Now there is warehousing and industries. Despite what the world economy has gone through, commitment from investors is still there. The world's appetite for investment is rising. We are in a position to make the best of this recovery, says Oussama.

Millennium Development is a member of Saraya Holdings, a Middle Eastern real estate development company. Its expertise is in development management services.

The company undertakes work on behalf of developers and investors in real estate. Essentially, they set up the development strategy and undertake all the work done by a developer.

The only difference is the investment does not come from Millennium Development but from the investors, which can be the Government or private sector.

Oussama says Millennium Development offers clients a portfolio of services which includes business development, urban planning, architecture, finance, marketing, legal and construction management.

We are only the catalyst. If you go through the check list, all the right factors are there, the location and the government support, among them.

How demand is created from abroad is a question of influence, he says.

Many projects sank during the recent economic crisis but Medini grew greater. The fundamentals are there. In a year or two, things will be coming up. LegoLand, the housing community, he said.

Oussama said credit goes to the investors and public-private initiatives, adding that where there is population and growth in wealth, there will be increasing aspiration for better social infrastructure and this is where Millennium Development adds value.

Southeast Asia is ripe for that. There is demand and big apirations but these aspirations are not limited to this region alone. The same is happening in China, the Middle East and Africa.

On the various development projects that are being undertaken around Kuala Lumpur by the Government in various public-private enterprises, Oussama said when one builds, one has to bear in mind that one is building for generations.

You have to be careful and creative about many things; the timelessness, a place of different incomes, all of which are timeless factors that make cities what they are. And they must be memorable.

By The Star

Malaysia Pacific, S. Korean firm in Iskandar green city project pact

MALAYSIA Pacific Corp Bhd (MPC) has signed a memorandum of understanding (MOU) with South Korea's information technology firm LG CNS for a green city project in Iskandar Malaysia.

The MOU is to promote and develop a long term cooperation and collaboration for the Lakehill Resort and Aptec "Smart Green City" related projects in Iskandar Malaysia.

LG CNS offers IT consulting, system and network integration and outsourcing services.

The green city park will enable the services of LG CNS to be used as a strategic planner in providing information and communications technology related services in design construction and maintenance of the Smart Green City project.

However, the details and scope of the project will be determined via mutual agreement at the time of the contract which will be approved by the board of directors of MPC and LakeHill Resort Development Sdn Bhd.

MPC in a statement to Bursa Malaysia yesterday said the MOU will be effective for six months from the date of the signing and can only be renewed if both parties agreed to do so.

By Business Times

Comprehensive plan needed to revive JB

An aerial view of Johor Baru city centre. Visitors used to stop by before the opening of the CIQ complex.

Opening of new immigration complex and shifting of govt offices left city centre deserted

JOHOR BARU: Comprehensive planning is needed to ensure the Johor Baru city centre transformation succeed together with strong political will and concerted efforts from various parties.

Views from property developers, owners, businesses, non-governmental organisations, town planning experts, chambers or commerce and Johor Baru folk must be taken into account in drawing up the urban renewal plan.


Prof Ahmad Nazri Muhamad Ludin ... ‘It is vital to rejuvenate Johor Baru.’

It is vital to rejuvenate Johor Baru into a vibrant city as it has lost its appeal,'' said Universiti Teknologi Malaysia dean in the Faculty of Built Environment Prof Ahmad Nazri Muhamad Ludin in an interview.

Under the 10th Malaysia Plan, some RM1.8bil will be allocated under the transformation plan with the Iskandar Regional Development Authority and the state economic planning unit as the project's facilitator.

Many blamed the opening of Bangunan Sultan Iskandar Customs, Immigration and Quarantine (CIQ) complex at Bukit Chagar in 2008 as the reason why the city centre is now deserted.

Prior to the opening of the CIQ complex, motorists and visitors especially Singaporeans and locals working in Singapore entering Johor via the old CIQ would stop at the city centre to change money and patronise the eateries.

But the traffic now has been diverted to Jalan Tebrau and Stulang Laut, hence money changers and eateries in the two areas enjoyed brisk business.

He said the shifting of state government offices to the state's new administrative centre of Kota Iskandar in Nusajaya in 2009 from Bukit Timbalan here made matters worse.

Lunch crowds especially office workers have declined and the public dealing with the government offices now have to go to Nusajaya,'' said Ahmad.

He said unlike Kuala Lumpur, after the federal offices moved to Putrajaya, it still has contents such as Jalan Tuanku Abdul Rahman, Jalan Petaling, Jalan Chow Kit and Central Market to attract crowds, but not Johor Baru.

Ahmad said people did not see a need to come to the city centre as its suburban areas were also developing; in fact Johor Baru has more vibrant suburban neighbourhoods than the city centre itself.


Samuel Tan Wee Cheng says that opening up Sungai Segget is the right move.

KGV-Lambert Smith Hampton director Samuel Tan Wee Cheng lauded the plan to redevelop the former sites of Lumba Kuda and Bukit Chagar low-cost flats in the same way as KLCC.

He said the development should include high-rise condominiums and serviced apartments as these could attract Malaysian professionals working in Singapore and expatriates based in the republic.

The sites' close proximity to the CIQ and the proposed extension of the MRT line from Singapore to Johor Baru Sentral are the good selling points to attract buyers,'' said Tan.

He said incentives should be given to property owners in the form of soft loans to upgrade their rundown properties in the city centre as the upgraded properties could fetch better rental returns for owners.

Tan said these properties could be turned into boutique hotels, specialty retail stores, food and beverage outlets as well as offices like in Singapore's Arab Street, Emerald Hill, Joo Chiat and Tanjung Pagar areas.

He said opening up Sungai Segget which flows alongside Jalan Wong Ah Fook in the city centre was the right move as water elements would bring back life and soul to the area.

Under the transformation plan, RM200mil will be spent to clean up Sungai Segget, one of the dirtiest rivers in the country with its reputation for being a dumping ground for raw sewage; RM6mil was spent several years ago to cover the stretch.

Southern region representative of Malaysian Association for Shopping and Highrise Complex Management Jenny Chan said old parts of Johor Baru city should be preserved in the renewal plan.

She said Johor could learn from Malacca and Penang in retaining and preserving old buildings in Jonker Street and George Town.

Chan said old buildings within the enclave of Johor Baru city might not be as old as those in Malacca or George Town but still worth preserving them due the uniqueness of the faade such as art dcor and neo-classical designs.

A vibrant city should be a blend of the old and the new. Look at London and Istanbul where the two elements blend well in the two cities attracting tourists from all over the world,'' said Chan.

She said regulat street performances, arts and culture activities, al fresco hawker centre could attract crowds back to the city centre after office hours and weekends and it was high time for Johor Baru to have its own Central Market like in Kuala Lumpur.

By The Star

Rising building material, labour and hidden costs main concern for Johor developers

JOHOR BARU: Escalating prices of building materials, higher manpower costs due to shortage of labour as well as hidden costs are among the main concerns of property developers in Johor.

KSL Holdings Bhd executive director Ku Hwa Seng said these problems did not just apply to Johor. He believes that developers nationwide also faced similar predicament.

He said the infrastructure projects outlined in the 10th Malaysia Plan (10MP) and Budget 2011 would further push up prices of building materials and labour costs in the next five years.

“The demand for residential properties in Johor, especially in the Johor Baru district, has improved as the economy gets better but developers might have problems kicking off new launches,’’ Ku told StarBiz.


Ku Hwa Seng says infrastructure projects outlined in 10MP and Budget 2011 would further push up prices of building materials and labour costs in the next five years.

He said building materials prices had increased between 10% and 15% in the last 12 months while labour costs had risen by 50%, compared with two or three years ago.

Ku said that shortage of labour was still the main problem for construction companies.

Mahabuilders Bhd group chairman Mustapha Hassan said while the increase in the prices of building materials was relatively stabilised, the same could not be said for the labour costs.

“Like it or not, we still need foreigners to work at project our sites, locals are not interested or else many projects will be delayed not only the ones by the private sector but also by the public sector,’’ he said.

Mahabuilders is among the few in Malaysia specialising in acquiring and reviving abandoned property projects and labeled as a white knight the construction industry.

Among the company’s revived projects to date include Taman Baiduri Johor Baru, Skudai Villa, Indera Wangsa Larkin, Senai industrial park and Pandan City Johor Baru.

By The Star

BRDB in tie-up to expand presence in Nusajaya

KUALA LUMPUR: Bandar Raya Developments Bhd (BRDB), which recently signed supplemental agreements with UEM Land Bhd, the master developer of Nusajaya, to buy a 60% stake in a special-purpose vehicle used for the development of Residential North in Puteri Harbour, is planning to expand its presence in the township.

The project, on a 111-acre freehold parcel, would be launched in the third quarter of next year and would be completed in six phases over seven years. The expected gross development value (GDV) for the project is RM2.3bil.

BRDB chief executive officer Datuk Jagan Sabapathy said the partnership with UEM Land was just the first step in a strategy to grow the company’s presence in Nusajaya, the flagship township of the special economic zone of Iskandar Malaysia in Johor.

The signing of the agreements was a follow-up to the July announcement by BRDB of the acquisition of the stake in Haute Property Sdn Bhd, the special-purpose vehicle set up for the Residential North project, from Dubai World, the emirate of Dubai’s flagship investment arm.

BRDB paid RM75mil for the stake and would be advancing a further RM70mil to Haute Property for the developmental rights to the project after Dubai World pulled out as a result of the global financial crisis.

“We’re still looking at a couple more tie-ups within Nusajaya, we’re taking a longer-term view of the region and its prospects,” Jagan told StarBizWeek.

He added that besides Nusajaya, the company still had about 300 acres undeveloped in the 1,400-acre freehold Bandar Baru Permas Jaya, also in Johor, where it recently launched the 35-acre Straits Residences, a strata-titled landed project.

Jagan said among projects in the pipeline for the Klang Valley was a 25.25-acre freehold plot slated for commercial development in Subang Jaya next to the Federal Highway, which the company acquired for RM125.86mil in early 2008.

“The plans have been submitted to the relevant authorities and we’re also contemplating acquiring a neighbouring plot of land to build a railway stop for the project,” he said.

Besides Subang Jaya, he said other projects in the pipeline included the first phase of the Hartamas II condominiums located north of Mont Kiara which, according to earlier reports, could have a GDV of RM300mil next year.

As for its overseas ventures, Jagan said the company, in partnership with Defense Housing Authority of Lahore, had completed the first residential phase in the 400-acre Defense Raya together with the golf course.

“We’ve also launched smaller residential units but we feel that the situation in Pakistan has to settle down first,” he said, referring to the country’s volatile political situation.

By The Star (by Fintan Ng)