MBSB's profits soar, lending moderates

By Andrew Batt:

Profit at the Malaysian Building Society Bhd (MBSB) rose 9 percent in Q3 to stand at RM263 million. Revenue also rose by 44 percent year-on-year to reach RM1.3 billion.

This significant increase is attributed to the strong growth in the Islamic banking operations across its retail segments. The largest contributor for the quarter was the Personal Financing-I (Islamic) packages that caters to the stable government market.

“The group’s non-performing loans (NPLs) stood at 4.33 percent as at 30 September as compared to 8.82 percent as at 31 December 2012, and the reason for this was the pursuit by MBSB to resolve its corporate legacy loans,” said Datuk Ahmad Zaini Othman, Chief Executive Officer and President of MBSB.

In Q3, net loans, advances and financing stood at RM23.2 billion, representing an increase of 52.6 percent from last year’s RM15.2 billion.

Personal financing led the company’s performance for Q3, while the growth of its mortgage lending segment moderated as compared to the previous quarter. Moreover, the company’s corporate loans segment saw higher disbursement rates.

“In addition to the securitisation of our loan assets, we are also looking at a structured capital management plan to strengthen the group’s capital structure to support loan assets’ growth while we believe a stronger structure will enable the group to provide competitive returns to its shareholders,” added Ahmad Zaini.

UK property prices decline

By Andrew Batt:

Average house prices in the U.K. dipped by 1.2 percent in the three months to October according to the latest Halifax House Price Index.

Commenting on the decline Halifax Economist Martin Ellis said: "Signs of a modest deterioration in the trend in house prices continued in October. The weak economic background has been a key factor dampening housing demand this year. Recent encouraging developments relating to the level of overall economic activity and conditions in the labour market, however, may help to support demand and underpin house prices around current levels over the coming months."

October’s drop was the fifth successive decline in this measure of the underlying trend and compared with a 0.5 percent fall in September. Average prices in the three months to October were 1.7 percent lower than in the same period a year earlier. This is very similar to the annual rate recorded a year ago: down 1.8 percent in October 2011.

October also saw a continuation of a modest rise in mortgage approvals. The industry-wide number of mortgages approved to finance house purchase - a leading indicator of completed house sales - increased for the third successive month in September.

Approvals increased by 4 percent to 50,000 in September, but were still 2 percent lower than in September 2011 according to seasonally-adjusted figures from the Bank of England.

Properties from the U.K., and epsecially London, have been selling extremely well throughout Southeast Asia during 2012.

What Obama's win means for US property buyers

By Andrew Batt:

America has voted and Barack Obama has won, but what will the vote mean for the increasing number of overseas property buyers and investors from Southeast Asia who are looking stateside?

‘Don’t count on the election to boost housing’ screamed the headline on one of the United States most-read real estate news websites yesterday. Most industry observes shared the same view; nothing much will change short term in the U.S. housing markets regardless of who the next incumbent of the Oval Office will be.

The latest government housing data paints a somewhat encouraging picture with new home sales recording a two-year high in September and foreclosures falling in 62 percent of US cities during the third quarter.

Yet housing issues were, according to exit polls conducted by The Associated Press and U.S. television stations, pretty low in the minds of American voters on Tuesday. Rising prices and unemployment were cited, understandably, as the main concerns.

The question on the minds of many overseas property investors is whether, in general, property prices in the U.S. have hit the bottom. There’s no clear answer to this because in some places prices have been rising for more than a year, while in others there’s arguably further to fall.

Some kind of overseas property buyers’ tax, similar to that introduced in Singapore in December 2011, would certainly win fans at home. It wouldn’t be a surprise, and indeed could well form part of future housing and property policies – especially when the market really starts to take off.

Foreign buyers of U.S. property focus focus their attentions on three key states. Florida account for the vast majority – more than 57 percent – with Michigan (13%) and New York (11%) occupying second and third spot. Together these three states account for more than four of every five foreign property purchase in the United States. Yet the proportion of overseas buyers in the U.S. is still small – just 8.9 percent in the year ending March 2012 according to the National Association of Realtors.

Andrew Batt, International Group Editor of PropertyGuru, said: “Property buyers and investors from Southeast Asia have been watching developments in the United States with interest. Even last weekend there was a New York property investment opportunity being showcased in Singapore, and properties from throughout the country have been selling well this year. It will likely be several months before the President starts to fine tune policies which have the potential to impact overseas buyers.

Sandakan Harbour Square helps transform Sandakan

By theedgeproperty.com
Friday, 02 November 2012 15:16

SANDAKAN: The opening of the Four Points by Sheraton Sandakan Hotel and Harbour Mall Sandakan has helped transform the city into a more modern and vibrant one. The hotel and mall also marked the completion of the Sandakan Harbour Square (SHS) urban renewal project.

The integrated masterplan development with a gross development value of about RM510 million also consists of a central market (market and fish jetty), town square and waterfront esplanade, Swiss Inn Waterfront Hotel and commercial shop offices. SHS is developed by ICSD Ventures Sdn Bhd, a subsidiary of Ireka Corp Bhd's London-listed associate Aseana Properties Ltd, with joint development partner Sandakan Municipal Council and managed by Ireka Development Management Sdn Bhd.

"We look forward to seeing Sandakan's revival to its halcyon days as the ‘Little Hong Kong' of the East," said Sabah Chief Minister Datuk Seri Panglima Musa Aman at the official opening on Oct 23.

Also present at the opening ceremony and gala dinner were Sandakan Municipal Council president James Wong, ICSD Ventures Sdn Bhd managing director Lai Voon Hon and Ireka Corp Bhd group managing director Lai Siew Wah.

"Having witnessed the birth of this project in 2003, I can testify that Sandakan city centre has been transformed from a sleepy backwater to the modern, vibrant city it is now.

"Sandakan Harbour Square is a great example of private-government joint partnership. This iconic landmark has rejuvenated Sandakan into a thriving commercial hub, complementing this famous eco-tourism destination with international class accommodation and shopping facilities.

"We must also not forget the abundant employment and business opportunities Sandakan Harbour Square brings to Sandakan," said Musa.

"From the technically challenging sea reclamation, which added 25% land area to the central business district of Sandakan in three months which we completed well ahead of schedule, to today's grand opening of this final phase, we are grateful for the strong support from the state government," said Voon Hon.

"Undoubtedly the success of Sandakan Harbour Square is also fuelled by the economic potential of the Sabah Development Corridor. We are very proud to see our vision coming to fruition — to bring modern lifestyle, social rejuvenation and tourism boost to Sandakan city."

Fronting the coast of Sandakan Bay, Four Points by Sheraton is the only internationally branded hotel in Sandakan offering 300 rooms. Harbour Mall Sandakan, which opened in July, is managed by international mall manager, CB Richard Ellis.

The 12-acre Sandakan Harbour Square was completed in four phases within the targeted 10 years. Sandakan is a famous eco-tourism destination in Southeast Asia. Unique attractions include the Sandakan Heritage Trail, Sepilok Orang Utan Sanctuary, Turtle Islands Park, Labuk Bay Proboscis Monkey Sanctuary, Sun Bear Sanctuary, Kinabatangan River and Gomantong Caves.

This article first appeared in The Edge Financial Daily, on Nov 2, 2012.

BLand to kick off luxury village on Jeju island

By Lam Jian Wyn of theedgeproperty.com
Friday, 02 November 2012 15:14


JEJU (South Korea): Berjaya Land Bhd (BLand) will kick off its multi-billion dollar integrated resort development known as Berjaya Jeju Resort or Berjaya Jeju Airest City with a luxury project, Gotjawal Village, on the southern coast of Jeju island in South Korea.

Gotjawal Village will cover an area of 92,811 sq m and will feature 51 villas and 96 shophouses with an estimated total gross development value (GDV) of US$250 million (RM763 million).

"We are looking at South Korean CEOs and professionals as well as creative industries to come to Gotjawal Village," CEO Datuk Francis Ng Sooi Lin told reporters and fund managers at a briefing in Jeju yesterday.

BLand also plans to attract the affluent Chinese who visit the island to enjoy its scenery, natural wonders and various world-class golf courses.

The Seaside Maison villas and the Market Walk shophouses are tentatively priced from US$2 million to US$3 million and US$500,000 to US$2 million respectively.

Foreigners who buy properties worth at least US$500,000, or 500 million won, are eligible for permanent residency in South Korea, which is an especially attractive proposition for China nationals. Jeju offers tourist visa exemptions for 187 countries, including China, with about half of the tourists from the republic.

Gotjawal Village is part of South Gate 3, which comprises a five-star resort hotel and lodging called Art Valley. Ng said the group is in talks with The Ritz Carlton Hotel to operate the hotel.

South Gate 3, along with South Gate 1 and 2, as well as North Gate 1 and 2, form Berjaya Jeju Resort, which will feature a medical centre, more hotels, a one million sq ft mall, spa, auditorium and a casino.

The entire development has an estimated GDV of US$3.2 billion and will be on an 183-acre tract along the southern coast of Jeju island.

So far, BLand has ploughed in about US$35 million for infrastructure in the area, which includes roads. Berjaya Leisure (Cayman) Ltd, a unit of BLand, holds a 72.6% stake while Jeju Free International City Development Centre tasked with developing and promoting Jeju, holds a 19% stake, and Swan Street Partners LLP with the remaining 8.4%.

BLand is also in talks with some parties to run the casino, and the group hopes the casino can tap the South Korean market, said Ng.

The Jeju government is in talks with the South Korean central government for the right to issue licences for casinos catering to locals. Currently, Jeju's government can issue licences for casinos that welcome foreigners only.

Ng said the group is still considering various development options, whether to jointly develop the mall with another party or build then sell it.

Two operators, Lotte Shopping Co Ltd and Shinsegae Co Ltd, have approached the group to buy the parcel of land designated for the mall, which is behind the Seaside Maison.

There are five other major projects in the pipeline in Jeju, a special self-governing province within South Korea. They are Global Education City, Jeju Healthcare Town, Jeju Science Park, Myths and History Theme Park and Seogwipo Tourism Port.

This article first appeared in The Edge Financial Daily, on Nov 2, 2012.

Verdy @ Ara Damansara by VILLAMAS

Green Living with Glorious Views 

Verde @ Ara Damansara offers a hotel-inspired living experience that speaks to nature lovers and those who truly appreciate privacy.

Ara Damansara is becoming a coveted address for those who would like to live or invest in exclusive townships in Petaling Jaya. One key difference that one would notice almost immediately is the generous space, especially the roads. Another plus point is its location; Ara Damansara is one of the last parcels of freehold land in Petaling Jaya. It is located near the Sultan Abdul Aziz Shah Airport road and is in close proximity to the established residential and commercial areas of Tropicana, Damansara, Subang Jaya, Bandar Utama and Kelana Jaya.

The township promotes easy accessibility via the New Klang Valley Expressway (NKVE), Lebuhraya Damansara-Puchong (LDP), New Pantai Expressway (NPE) and Federal Highway, while its rapidly expanding and improving infrastructure will further enhance its value and appeal. The township is still growing and will encompass approximately 4,000 units of various types of property in the next 4 years.

A Lovely Shade of Green

Serenely tucked within Ara Damansara’s quiet neighbourhood, Verde @ Ara Damansara will speak to nature lovers and those who truly appreciate privacy. The development’s location is arguably subdued, yet well linked to many daily conveniences and indulgences. The word ‘Verde’ translates to ‘green’ in the Spanish, Portuguese, Italian and Romanian language.

This namesake is largely reflected throughout the development’s grounds and in the units. Green initiatives within the units include the proposed installation of a rainwater harvesting system, Smart Home System that encourages a paperless environment, and the usage of low volatile organic compound (VOC) emitting materials such as paint, adhesive and sealants.

Verde @ Ara Damansara will also include biological ponds that feature a range of proposed recreational amenities such as an active aqua life, herb garden and sky garden that are exclusively for its residents. The developer, Villamas, aims to achieve a gold star rating in accordance with the standards of the Green Building Index (GBI) for its environmental considerations.

Hotel-inspired Living Experience

Verde @ Ara Damansara is built on 4.808 acres of freehold land and is conceptualised as service hotel suites, where the residents can benefit from the amenities and level of luxury expected of a contemporary hotel. The development will also feature a grand lobby and concierge. Emphasis is placed on producing a resort-like ambience, by incorporating environmental-friendly features such as lush tropical landscapes, gardens, water features, biological ponds, pools, cascades and artworks.

Built-up sizes for the units range between 1,383 sq ft and 2,110 sq ft. Inward facing units will overlook the leisure facilities deck, while outward facing units will enjoy the vistas surrounding the plot (river, waterways and green network). The palette of colours and materials chosen is aimed at creating a warm and lavish atmosphere that is parallel to a top-notch hotel.

The 13-storey serviced condominium houses a total of 409 units in 4 blocks. There will be 3 levels of basement car parks (with an estimated 1,050 car park lots for the residents), in addition to attractive amenities such as a nursery, observation deck, glass walled gym overlooking a crystalline infinity pool, reflective pond, half basketball court, yoga space, whirlpool, sky garden and function hall, among others. All these features and amenities are within a gated and guarded development, with a 3-tier security system to ensure a better peace of mind for the residents.

Verde @ Ara Damansara sales gallery tentatively will be ready for preview by mid of November and completed in January 2016. For details, call (603) 7728 6666 or (6012) 651 2355, or visit www.verde-aradamansara.com.

About the Developer

Villamas is established mid-size property developer with projects dating back to 1995. Since its first foray into property development in 2000, Villamas has experienced an outstanding growth rate that currently having ongoing and future developments exceeding RM1 billion in gross development value.

Previous developments include Villa Park at Seri Kembangan, Villamas Apartment, Atmosfera Condominium at Puchong, and Bukit Kepong Baru. Other current projects include Serin Residency at Cyberjaya and Zefer Hill Residence in Puchong Jaya. 

Exclusive IGB-led group wins bid to build RM8b Taipei Twin Towers

By Ho Wah Foon of theedgeproperty.com
Tuesday, 30 October 2012 13:06

PETALING JAYA (Oct 30): A multinational consortium led by IGB Corporation Bhd has won the bid to build Taipei’s Twin Towers with total investment of about NT$80 billion (RM8.3 billion), according to news reports in Taiwan.

The project, sited at Taipei's Main Railway Station, is Taiwan's biggest urban development project.

"The Taipei City Government announced that the consortium, led by IGB Corp Bhd, a Malaysia-based company engaged in investment holding and property development, had beaten two other bidders for the project, with a total investment of NT$70 billion-NT$80 billion," reported the Taipei Times yesterday (Monday), quoting a government statement.

The official Taiwan Today also carried similar news.

The consortium of Malaysian, Japanese and Taiwanese firms (Taipei Gateway International Development Co Ltd) is expected to break ground for the construction of two high-rise buildings — one with 56 stories above ground and four basement levels, and the other with 76 stories above ground and four basement levels — on the site of Taipei's main railway station within one year.

According to Taipei Times, the two buildings will be "multi-functional, with housing and shopping malls, office spaces and international hotels".

The project, to start in 2013, is expected to cover a total floor space of 158,000 ping (sq metres), equivalent to 1.5 times the size of Taipei 101 Building.

When completed in 2017, the twin towers will serve as the main hub for the Taoyuan airport MRT line to Taipei and five other railway and MRT lines in the capital, according to Taipei Times.

Taipei Mayor Hau Lung-bin said the Taipei Twin Towers project would create 23,000 jobs in the local construction, real estate and services sectors after work commences in 2013.

Meanwhile, Taiwan Today reported that Taipei Main Railway Station will be the site of a multibillion dollar real estate development featuring hotels, offices, restaurants and shops after 2017.

It said under the terms of the project, the Taipei City government will not be responsible for any capital expenditure, but will benefit from its 55% property ownership once the project is completed.

According to the city government, the project has been in the pipeline since 2007 but it failed to take off due to financing problems.

"Taipei Gateway won out as its bid requires no taxpayer funding and offers 55% of property rights to the municipality and other landowners," a city official told Taiwan Today. "The firm's proven management track record is also a strong plus."