Prime land near Istana Negara sold to Jakel Land
A 19.14-acre parcel of government land fronting Jalan Duta near Istana Negara in Kuala Lumpur has been sold for RM646 million — 22% below the original advertised reserve price. The buyer is said to be Jakel Land Sdn Bhd, which is equally owned by Symphony Life Bhd, Permodalan Nasional Bhd (PNB) and JBiz Development Sdn Bhd. According to sources, Jakel Land bought the prime tract located in Jalan Lembah Ledang to build a mixed-use development with a gross development value of RM5 billion to RM6 billion. It is understood that Jakel Land bought the tract last December, but it is still in the name of the Federal Land Commissioner. (The Edge Markets)
Rehda: Economies of scale needed for IBS adoption
The Industrialised Building System (IBS) has to reach economies of scale for it to be economically viable, and volume is key, said Rehda. Without economies of scale, IBS adoption continues to be low. According to the results of a survey by the Construction Industry Development Board (CIDB) released earlier this month, private sector adoption is still low at around 15%, while government projects are seeing higher adoption at 70%. There are sufficient IBS suppliers in the Klang Valley, but other states are still lacking. Another factor that makes construction more expensive is compliance cost, and that state government and local authorities are charging very high conversion fees, development charges and capital contribution. (The Edge Markets)
Boutique developer debuts with Avara Seputeh
Ba Sheng Sdn Bhd will be launching its maiden project in Malaysia called Avara Seputeh at Old Klang Road, Kuala Lumpur next month. Targeting small families and young executives, the 1.39-acre freehold serviced apartment project with an estimated GDV of RM320 million will have 366 units over two 35-storey towers. The development will also have eight retail units on the ground floor. The boutique developer is already sourcing for more land parcels in KL. (The Edge Markets)
Managing director Alex Koh with a scale model of Avara Seputeh (Photo by Low Yen Yeing/EdgeProp)
Kerjaya Prospek bags RM291mil condo job in Bangsar South
Kerjaya Prospek Group Bhd has bagged a RM291 million contract from property developer Bon Estates Sdn Bhd for ancillary works for a condominium project called The Estate in Bangsar South. The proposed project is expected to commence this month, and completed within 32 months. Sited on 3.68 acres of land, The Estate will comprise two 46-storey condominium towers housing 328 units and a three-storey podium for recreational facilities on top of a 4½-level basement car park. (The Edge Markets)
Foreign investor eyeing stake in Titijaya
Titijaya Land Bhd is in an advance stage of negotiation with a few parties, the frontrunner being a large foreign property company, that are looking to buy a stake in the developer. The foreign party, which is not a China company, is interested in Titijaya because of its landbank in prime locations, particularly in the Klang Valley. Titijaya has a total landbank of 432 acres accumulated over the last two decades, with a total GDV of RM8.6 billion, which has not been revalued for 20 years. The source added that most of the foreign developer’s past projects were similar to Titijaya’s in terms of pricing and offerings – medium cost homes and in urban areas – and that discussions are ongoing with several interested parties. (The Star Online)
Malaysian REITs earnings to improve in 2H2017
CIMB Equities Research expects earnings of Malaysian REITs under its coverage to improve in the second half of 2017. The improvement would be supported by mid-single-digit rental reversions from retail assets in prominent locations (Suria KLCC, Mid Valley, The Gardens Mall and Sunway Pyramid) as well as stronger tenant sales boosted by year-end holidays.The year-on-year improvement would be supported by contribution from newly-added assets by MRCB-Quill REIT, Axis REIT, and additional net lettable area in KLCCSS’s Menara Dayabumi. (The Star Online)
UM project offers housing for elderly
Universiti Malaya (UM) will set up assisted living homes for the elderly and use technology such as motion sensors or activity trackers to ensure the safety and well-being of their elderly residents. The initiative comes under the university’s commercial unit in collaboration with several private companies, and is expected to be up and running within five years. Assisted living homes, while uncommon in Malaysia, can be found in countries like Australia and the United States as an option for the elderly who may need help with dressing, bathing, eating or going to the toilet but do not need intensive medical and nursing care. (The Star Online)
Nam Cheong to dispose corporate office property in Singapore
Malaysia’s Nam Cheong is proceeding to dispose of its corporate office property in Singapore so as to pay off an outstanding amount for the mortgage, in light of the company’s ongoing discussions on a proposed debt restructuring. The Paya Lebar freehold property in Singapore, currently Nam Cheong’s principal place of business, will be sold to a third party for S$4.5mil. This is the second property disposal by Nam Cheong, as the OSV builder earlier this month sold three Singapore office units that were also on mortgage to DBS Bank. (Seatrade Maritime News)
