Series of discussions to harmonise standard, price of affordable homes
The Urban Wellbeing, Housing and Local Government ministry has held two series of discussions with state governments to harmonise the standard and price of affordable houses nationwide. Minister Datuk Abdul Rahman Dahlan said the outcome of the discussions would be submitted to the National Housing Council for approval before being announced. He urged housing developers and agencies to use the study by Bank Negara Malaysia (BNM) on capability of house ownership in the country as a guide in constructing houses. The study found that an affordable house bought by Malaysians was priced at RM356,803, with an average monthly payment of RM1,550. This is much lower compared to an affordable residence as defined by developers and property agents, namely, RM500,000. It was also discovered that those in Group B40 could only afford a house of around RM50,000 with repayment of RM217 per month, while those in the M40 group generally could afford a maximum RM265,100 house with monthly repayment of RM1,151. (The Sun Daily)
1,000-acre KLIA Aeropolis in the making
Airport operator Malaysia Airports Holdings Bhd (MAHB) announced that it is planning to develop 1,000 acres of landbank near its airports, with the potential of generating RM7 billion in investments over five years, during the launch of MAHB’s five-year business plan, Runway to Success 2020. The KL International Airport (KLIA) Aeropolis would be developed through three major clusters: air cargo and logistics (200 acres); business and aviation parks (400 acres); as well as meetings, incentives, conferences and events (MICE) and leisure (400 acres). Key projects include a theme park, hotel, KLIA Aerotech Park, KLIA Cargo and Logistics Park and Regional Transshipment Centre. The Mitsui Outlet Park is one of the earliest developments of the KLIA Aeropolis, with the second and third phases ready by 2018 and 2021 respectively. The detailed plan of KLIA Aeropolis will be announced on May 23. (The Star Online)
(Image from The Star)
SP Setia to launch RM2bil Setia Eco Templer township
Property developer SP Setia Bhd group will be launching its GDV RM2 billion new township, Setia Eco Templer, next month. The 7.69ha development is located on the former site of the Perangsang Templer Golf Club in Templer Park in Rawang, and will comprise residential and commercial properties, with a master plan featuring English, Balinese or Peranakan themed architectural designs. It will take about seven years to complete from the date of launch. Construction of the first phase one is targeted to start in June with GDV estimated at RM400mil. SP Setia will build a RM25mil interchange connecting directly to Jalan Ipoh-Rawang, to serve the Setia Eco Templer community. It will be completed upon vacant possession of Setia Eco Templer’s first phase. (The Star Online)
Scale model of the Setia Eco Templer township (Photo from The Star)
IGB REIT 1Q net property income up 4%
IGB Real Estate Investment Trust’s (IGB REIT) net property income (NPI) grew nearly 4% to RM93.62 million in 1QFY16, driven by higher total rental income in the quarter. Its distributable income increased 4% to RM82.66 million, up from RM79.59 million in the same quarter last year. No distribution was declared for the current financial period ended March 31, 2016. The manager of Mid Valley Megamall and The Gardens Mall said its revenue for the quarter was up 4.6% to RM131.21 million, but warned that the subdued growth in retail sector for 1QFY16 may register a negative year-on-year growth of 0.4%. It also noted that prices of retail goods and services have been increasing gradually, although weakening in oil prices has reduced consumers’ spending power. (The Edge Markets)
Jakel Mall (pictured) will be part of the Jakel Square development, formerly CapSquare in Kuala Lumpur. (Photo from Utusan)
First LuLu store in Malaysia to open soon
Middle Eastern retailer LuLu Group International is expected to open its first store in Malaysia next month or latest by early June, in time to capture the Hari Raya shopping period. The LuLu outlet, which will be located near Masjid India in Jalan Munshi Abdullah, has already held its pre-opening prayers and is believed to be stocking the shelves. The store is located within the CapSquare Retail Centre that will be renamed Jakel Square, which is under textile retailer and wholesaler Jakel Group’s property division. The 250,000 sq ft store will be about 2.5 times larger than Tesco Mutiara Damansara’s hypermarket, but slightly smaller than Aeon Mid Valley. The LuLu’s Hypermarket & Department Store, which is a hypermarket cum department store, has created some confusion as to the rules that would apply to the store, as foreign hypermarket operators need to divest a 30% stake to a local partner within three years, while foreign department stores do not have to. (The Edge Markets)
Seacera inks RM85mil agreement to build manufacturing plant
Seacera Group Bhd has signed two agreements, worth RM84.9 million, with Small Medium Enterprise Development Bank Malaysia Bhd (SME Bank) and the Northern Corridor Implementation Authority (NCIA) to build a tile manufacturing plant in Kamunting, Perak. Seacera, which is involved in tile manufacturing, property development and construction businesses, has also signed an MoU with SPNB Edar Sdn Bhd (SPNB) to supply tiles for SPNB’s projects. The company will receive a RM77.5 million Islamic banking facility from SME Bank and a RM7.4 million grant from the Bumiputera Agenda Steering Unit to purchase machinery and construction of the first phase of the plant. The construction cost is estimated at RM170 million with the first phase of the plant to be completed by end-2017, phase two by June 2018 and phase three by June 2020. (Bernama)
