Back to drawing board for RM3.6bil The Paragon@KL Northgate
KL Northgate Sdn Bhd continues to see delays in its planned RM3.6 billion gross development project in Gombak – The Paragon@KL Northgate – amid the oversupply situation in the property market. KL Northgate had decided to review the whole development concept and development components of The Paragon@KL Northgate in view of the current real estate glut and the imbalance in the supply-demand conditions. Anzo Construction Sdn Bhd (ACSB), which was supposed to bid for the project together with MCC Overseas (M) Sdn Bhd last month, was further informed that the whole process will take at least another six to nine months before the bidding and tendering exercise can be carried out. The 18-acre project was initially designed to include a shopping mall, shop offices, hotels, residences and serviced suites. It included the redevelopment of the long-abandoned Selayang Springs Condominium project. (The Sun Daily)

Retail sector enters consolidation phase
The retail sector is entering a consolidation phase with retailers re-strategising in order to adapt to new challenges, the Association of Complexes Management Malaysia said. The retail market is still affected by the imposition of the goods and services tax (GST). Given that household debt against the gross domestic product (GDP) is still relatively high, at about 85%, this will impact the discretionary spending ability of consumers. Occupancy rates of shopping malls in Malaysia have been rather consistent, and for those that are located in Kuala Lumpur and Selangor, their performance is even better despite the number of new malls entering the market. Strategic planning and proactive management are essential for successful malls. (The Star Online)

MAHB Subang Aerotech Park Phase 1 to complete by year-end
The 24.28ha Subang Aerotech Park project development is currently on track with its first phase expected to be completed by year-end. Project owner MAHB has already concluded deals with some delivery partners to build one of the first phase developments for the project. The company has proposed a sublease of its 2.83ha project land to RHB Trustee Bhd, the trustee of Axis REIT, to build a single-storey manufacturing plant cum office building. The facility is expected to be operational by the end of 2018. (The Malaysian Reserve)

Alrajhi family buys Wisma Mont Kiara for RM122mil
Saudi Arabia’s Alrajhi family is acquiring the 16-storey Wisma Mont Kiara office building for an estimated RM122 million from Singapore-based ARA Asset Management Ltd. The acquisition of this property may be the first of more investments by the family in Malaysia. Wisma Mont Kiara offers 241,682 sq ft of gross floor area and 181,992 sq ft of net lettable area (NLA). Based on the NLA, the transaction works out to RM670 psf. (The Edge Markets)

DBE to venture into property development
Integrated poultry company DBE Gurney Resources Bhd is planning to go into property development as the loss-making company seeks to return to profitability. It will undertake a proposed joint development with Misi Jutari Sdn Bhd for the construction and development of a mixed development project across 3.77ha of freehold land in Bota Kanan, Seri Iskandar, Perak, with a GDV of RM24.5mil. The mixed affordable development project will comprise 10 units of single-storey semi-detached houses, 85 units of single-storey terraced houses, three units of double-storey shophouses and 16 units of single-storey shophouses. (The Star Online)

Mitrajaya targets RM1.2bil new orders this year
Construction and property firm Mitrajaya Holdings is aiming to secure RM1.2 billion worth of new orders in 2018 as Malaysia undertakes massive projects to boost infrastructure. The company is currently bidding fo domestic contracts worth RM3.3 billion. Last year, it secured RM1 billion worth of contracts, and the company is confident that the construction sector outlook remains positive with more projects rolling out. New launches planned for 2018 include Block A of Wangsa 9 Residency, and 24 unit shop-houses in Johor. (Nikkei Asian Review)

PPA1M Mercu Jalil (Image from LBS)

Affordable homes for civil servants
More government employees are on their way to becoming homeowners, thanks to the ongoing implementation of the 1Malaysia Civil Servants Housing Project (PPA1M). Applications are currently being accepted for the PPA1M Mercu Jalil apartments in Bukit Jalil, a project developed by LBS Bina Group Bhd. “We are still accepting applications, so we urge civil service employees to grab this opportunity as a first step towards owning a home,” said LBS Group managing director Tan Sri Lim Hock San. PPA1M Mercu Jalil comprises two blocks of 47-storey apartments with 1,360 units, inclusive of a nine-storey carpark facility. It is expected to be completed in four years. (The Star Online)