Friday, February 25, 2011

Quote of the Day

"Humor is also a way of saying something serious"

Thursday, February 24, 2011

Full Moon Party 2011

The Propertizer supports: PSC's Full Moon Party 2011!


@Fullmoon Malaysia 2011: its gonna be d Experience of 2011! Rozz of Bagan will be jazzin up the early night;

We confirm Zouk's DJ Ken (MatserK) and "ipohmali"'s MC Point Blanc to spin for us for the night!


Andrew Netto will be rockin' the house with laughter! (Some call him Malaysian's own Russell Peters) so expect something GREAT!! (You will be standing on your feet when hes done!)

Party hard but party with a cause as well...this year, we support Penang's fight against poverty (Partners against poverty policy). How many people can we help? Not all, but hopefully we can make a difference in the lives of the some of them.
This year we bring luxury, when Naza our biggest sponsors will be bringing two Maserati top models into Penang, what do you say about partying with some of the world's luxury performance cars, by the sea with great DJs? Come and join in the Experience with us!

Here is the Event Schedule for the Full Moon Party 2011: Maserati by the Sea on the 19th of March 2011 at PSC (Penang Swimming Club).

An Oasis of Peace and Tranquility....Well for the Full Moon Party, I think the environment would be far from peaceful and tranquility that night (and that night only) as we bring powerful lightings and powerful bass sounds from the stage! Woot!


Come and take you pictures next to the luxurious Maserati and our FMP Beautiful, sexy ambassadors! We would have 20 of them present and awaiting to take photographs with you on this exclusive night! There would be some photoshooting sessions soon, propertizer will follow up and let the world see these beauties :)


Tickets are now on discount at RM88.00 until the 1st of March 2011. Remember this is for CHARITY (Penang states policy: Partners against Poverty). Lets do something good and a chance to help those who are in need. Every ticket sold will be given to Charity.

Here are the line up for the night:

06.00 pm: Registration + Maserati GrandCabrio on display
07.30 pm: Rozz Ritmann jazz performance
09.15 pm: Speeches by PSC president, welcome Chief Minister
09.45 pm: Reveal Maserati Quottroporte Sport GTS
09.55 pm: Andrew Netto comedian show
10.20 pm: Dance Performance
10.45 pm: Maserati Fireworks
10.50 pm: Zouk DJs spins till late (f.t. Point Blank)

Please check out of facebook page!
www.facebook.com/pscfullmoon

And finally, we also have tickets for sale, its RM88 till 1st of March 2011. After the 1st, prices would be RM108. Please contact:

Michael: 016-4207727
Daniel: 016-4217121

For more details! Thanks and have a nice day :)

Wednesday, February 23, 2011

Quote of the day

" Experience is the name everyone gives to their mistakes "

Hunza eyes IMT growth triangle for new township

By Regina William of theedgemalaysia.com
Friday, 18 February 2011 13:25

GEORGE TOWN: Hunza Properties Bhd is targeting the Indonesia-Malaysia-Thailand Growth Triangle (IMT-GT), consisting of north Peninsular Malaysia, southern Thailand and Sumatra with a combined population of over 40 million, for its new integrated township development in Bayan Baru on the south western end of Penang island.

Hunza, which bought the 42-acre site for RM82 million last year at RM45 per sq ft, is planning between 8.5 million and 10 million sq ft of residential and commercial space for the township, with a gross development value (GDV) expected to run into billions of ringgit.

Executive chairman Datuk Khor Teng Tong said the recent revision of density guidelines by the state government would allow at least 3,200 high-end residential units to be built within the township.

The units would range from studio to larger units sized between 1,500 and 1,600 sq ft and Hunza expects to develop the township over seven years once the project gets off the ground within the next few years.

The Penang Island Municipal Council (MPPP) had in July last year revised the plot ratio guidelines for high-rise properties on the island which allowed developers to build up to 87 units with a total built-up area of 122,000 sq ft per acre compared with 42,000 sq ft per acre previously but had imposed pricing conditions on the units.

Previously, the plot ratio guideline for high-rise units on the island was 60 units per acre or 42,000 sq ft per acre.

The new plot ratio guidelines are not applicable for prime residential areas such as Jalan Tunku Abdul Rahman (popularly known as Ayer Rajah Road), the Jesselton area, existing established housing zones and general housing areas, the George Town Heritage Site (which includes the buffer zone), certain areas in Tanjung Bungah and Tanjung Tokong.

Speaking at a briefing on its half-year financial results ended Dec 31, Khor said while it was in the midst of settling more than 800 squatters living on the land, Hunza is also scouting for international consultants to plan the integrated city.

"This township is in tandem with the state government's vision to turn Penang into an international city," Khor said.

Among the 10 components of the project are an arena of international standard with a seating capacity of between 4,000 and 5,000 people, high-end condominiums, commercial centre, hotel and service apartments.

Khor believes that demand for properties in Penang will continue to be strong for residential units in the face of shortage.

Quoting press reports that supply on the island in 2009 was reduced by 2,600 units for various types of residences, Khor said there was also a shortage in 2010.

"Going forward, the shortfall in supply in properties cannot be overcome nor addressed in the short term as the population in Penang has been increasing steadily over the years from 1.4 million to 1.6 million in 2010.

"This will lead to a situation where supply cannot meet demand and this will contribute to the increasing trend in property prices.

"The fact that the island is scarce of land supply has caused land prices to accelerate further and other factors like increase in building material prices and labour costs, and inflation have also contributed to higher property prices on the island," he added.

Khor said that with Penang leading the nation with RM12.2 billion investments in 2010, it would also attract more skilled human talent, which would also enhance demand for high-end property on the island.

Thus, the outlook for the property market is set to remain positive, he added.

Hunza recorded RM128.2 million in revenue and RM44.7 million in net profit after tax for the six months ended Dec 31, an increase of 10.13% and 73.93% from RM116.4 million and RM25.7 million respectively from the previous corresponding period.

Khor said among Hunza's projects, Gurney Pragon condominiums are expected to be completed in 2011, while the shopping mall would start operations in the second half of 2012.

Alila II, a high-rise green building joint venture project with a GDV of RM300 million, comprising 260 units at Lembah Permai on the island, is also expected to be launched soon.

Beside the 42-acre site at Bayan Baru, Khor said Hunza's landbank includes 450 acres in Kepala Batas, 350 acres in Sungai Petani, Kedah, 37 acres in Juru on the mainland for commercial development and another 6.5 acres in Segambut, neighbouring Mont'Kiara, where construction of 400 high-end units with a GDV of RM300 million will commence next year.

Pemandu: Penang not left out of ETP

KUALA LUMPUR: Penang has not been left out of the Economic Transformation Programme (ETP), contrary to claims by certain quarters, that the island-state was not being offered any project or development under it.

According to the Performance Management and Delivery Unit (Pemandu), some 95 entry points projects (EPPs), will be implemented in Penang over the next 10 years within 11 National Key Economic Areas (NKEAs).

In a statement on Friday, Feb 11, it said that in 2010, the Malaysian Investment Development Authority (Mida) facilitated the inflow of RM12.2 billion in investments involving 128 projects to Penang.

Pemandu also said it was inaccurate to adopt a proportional approach to determine the amount of investment that a state is entitled to, either as a whole or on a point in time such as the third ETP Progress Update, where 19 developments and projects were announced.

The ETP is a focused, inclusive and sustainable initiative that will transform Malaysia into a high-income nation by 2020.

Where inclusiveness is concerned, the ETP aims to share the wealth of the country with all segments of the population, whether urban or rural, regardless of gender and in all regions, including Penang, although the island is under the opposition pact government.

For example, in November 2010, at the second ETP Progress Update, it was announced that Cisco will be investing in Penang via the transfer of its manufacturing process and skills for a wide range of routing and switching products from the United States to Penang.

Traditionally, Penang is renowned as the hub for the Electronics and Electrical (E&E) sector and within the ETP, Penang will see developments in many of the 13 Entry Point Projects within this NKEA.

These EPPs cut across four subsectors that will strengthen Malaysia's capabilities across the value chain, particularly in higher value-add upstream activities.

Penang-grown Pensonic Bhd is embarking on an expansion over the next five years to realise the establishment of an electrical home appliance manufacturing hub and international distribution network.

"This is one of the EPPs identified in the ETP Roadmap within the E&E NKEA," Pemandu said.

Under the Tourism NKEA, Penang has been identified as a potential location for the development of EPPs such as the establishment of a Premium Outlet, becoming one of the stops for the Straits Riviera cruise, developing local expertise and better regulation of the spa industry. — Bernama

Advice from three property investment experts

At a recent one-day property intensive preview titled Real Estate Investment Congress, property investment guru Milan Doshi and two of his previous students, Prudence Wong and Nancy Ng, answered interesting questions from the crowd. Doshi has been investing in both properties and the stock market since the 1990s, and has written two books, How You Can Get Rich From The Property And Stock Markets and How You Can Become A Multi Millionaire Real Estate Investor. At last count, his properties are worth more than RM22 million.

Popular titles: Milan Doshi’s books on investment

Wong is a property investor turned property developer. Her first project will be an integrated commercial development called Qube in Shah Alam. Ng is the sales director for that project. Wong and Ng met each other in an Internet seminar and have since been formed a solid friendship and business partnership with each other.

Here are some of their answers from the live forum.

-----

Question: Property prices are going up. Are there still many good deals out there?
Ng: The best investments I made were in the last three to five years. It is still possible to purchase properties that are below market value. When will the next depression be? I don’t know but I will still buy (properties). If you are a good customer, the bank will usually try to work something out with you should you face some cashflow problems.

Wong: I still buy properties every year. Previously, at one point, I bought properties every month.

-----

Question: Please share the best location for commercial properties.

Wong: For commercial, you must look at the amenities, population and human and car traffic. If at a location, you can’t find parking, the property appreciation will be huge. I go for locations with more supply than demand. And I also purchase the best lots, which are corner or adjoining units.

-----

Question: What “homework” should I do before investing?
Wong: Before investing, do lots of research. Before going to the unit, check its value and double check with the agent. Also, check the latest transacted price. You should know the location, its surroundings and available amenities. Don’t stay in the dark and also talk to your potential neighbours. I have more than 1,000 clippings of properties that I have visited before in my filing system.

Doshi:
Know who to listen to. Some professionals such as bankers or lawyers, in all good intent, share their advise accordingly, but if they are not an investor, you should not listen to them 100%.

L-R: Prudence Wong, Nancy Ng and Milan Doshi address the crowd’s questions


-----

Question: Should I refinance my paid property?
Doshi: Take the longest possible loan with the least possible cash for property investment. Keep refinancing every three to five years.

Ng: One must love to borrow money. By borrowing, you are able to buy a few more properties. In a few years, the properties will appreciate and then when you refinance, you can buy more properties. Some people, they have a phobia of borrowing money from the bank. They are not able to sleep at night. If you are such a personality, then please do not refinance (laughs).

-----

Question: I bought a freehold double storey link house (DSLH). Initially it was for my own stay. What’s your advice? Should I sell or hold the property? Completion is in approximately nine months’ time.

Ng: If there is still nine more months, then don’t worry first. In nine months also someone can already have a baby (laughs). Worry about it only when it is two to three months away from completion. Monitor the market momentum at that point and decide only then.

-----

Question: I have a limited budget. Should I buy high-end or low cost?

Doshi: A few high-end or many low cost units. You can use the No-Money-Down strategy to buy many medium or low cost units. If it is a high-end unit, you can go for commercial. Personally, I would rather not buy a high-end condominium. If a unit is more than RM800,000, at that level the tenant pool is small as there’s an oversupply. In Bangkok, there’s more than 100,000 expatriates while Malaysia has about 30,000 to 40,000 expatriates.

Question: How do I avoid from being emotionally attached to a property?
Ng: Think of it like adoption. Adopt the property for three years and then sell it. Ask yourself, do you need the money. If you sell it, would you buy another better one? If you are afraid that you can’t find a better property, keep it and refinance it. It is advisable to refinance the property with the bank that the loan was taken from, as there would already be a borrowing relationship and you might get a better price.

Doshi: Always buy with the intention to keep or flip (sell). So when the time comes, you are not so emotional. Sometimes, I would not sell unless the price is too good.

-----

Question: Should I resign?

Ng: Do you have seed money when you resign? Acquire the knowledge first.

Wong: In year 2002 to 2004, I was still working. You should get good cashflow before resigning. Employment is good for getting loans. The job is the vehicle for you to get loans for property investment.

Attentive audience: Doshi speaking to a packed hall during his property investment workshop preview session

Question: I found a a commercial development offers retail guarantee. Is that a good thing?
Doshi: The developer should ideally be the one handling the retail guarantee, and not some small two dollar company. Ask the agent, read the fine lines or check with your lawyer to see who the contract is between.

Ng: If you are a beginner, don’t be too ambitious. Zoom in and study a few areas that you are comfortable with. For residential units, you can go to websites. 70 to 80 percent of the information is there. For commercial units, there are limited shops. Read the papers to know what is going on.


-----

Question: How do I evict bad tenants for commercial properties?

Wong: There are two ways – illegal and legal (laughs). To avoid bad tenants for commercial, check the tenants out. Check if the company directors are in any sort of bankruptcy situation, find out the nature of the business and do cross-reference checks.

For me, every three or four months, I send my team to check out the properties to see how the tenant’s business is doing. If they default the payment the first time, I will send a notice. After the third notice, if they still do not pay, I will then cut the water and electricity bill. It is advisable to have a separate utility account for tenants, so that when they do not pay, for example, the electricity, Tenaga chases the tenant, and not you.

Malaysia's Budget 2011 related to the property-sector.

Malaysia's Budget 2011 related to the property-sector.
KUALA LUMPUR: Malaysia's Budget 2011 was tabled in Parliament by Prime Minister Datuk Seri Najib Abdul Razak on Friday Oct 15. Below are proposals related to the property-sector.

* Proposed stamp duty exemption of 50% be given on instruments of transfer of residential properties, not exceeding RM350,000 for S&P must be executed between Jan 1, 2011 to Dec 31, 2012. Apply to first residential property purchased by a Malaysian citizen and it can be claimed once only within the exemption period.
* Stamp duty exemption of 50% be given on loan agreements for residential property priced not exceeding RM350,000.Apply to first residential property purchased by a Malaysian citizen and it can be claimed once only within the exemption period.

* 'Skim Rumah Pertamaku' or 'My First Home Scheme' through Cagamas Berhad to assist those with household income of less than RM3,000 per month to buy a house. Scheme would provide a guarantee on down payment of 10 per cent for houses costing below RM220,000. The house buyers will obtain a 100 per cent loan without having to pay the 10 per cent down payment.

* 'Skim Pembiayaan Perumahan Kos Rendah' or the 'Low-Cost Housing Financing Scheme' with an allocation of RM50 million, managed by Bank Simpanan Nasional. The scheme is open to all Malaysian permanent estate workers to assist them to obtain housing loans up to a maximum of RM60,000 for the purchase of low-cost houses at four per cent interest rate and a repayment period of up to 40 years.


* Allocation of RM568 million to build 300 units of affordable homes under the 'Projek Bantuan Perumahan Bandar' or 'Urban Housing Aid Project', 79,000 units under the 'Program Perumahan Rakyat' or 'Public Housing Programme' and 8,000 units under the 'Projek Bantuan Rumah Sewa' to assist the poor and low-income group

* A 2,680-acre mixed development project to be undertaken by the Enployees Provident Fund (EPF) including affordable houses, commercial, industrial and infrastructure facilities offices at a cost of RM10 billion at the Malaysian Rubber Board land in Sungai Buloh to be completed by 2025


* A RM5 billion landmark integrated development known as "Warisan Merdeka" developed by Petronas to be completed by 2020.It will feature a 100-storey tower to be completed by 2015, the tallest in Malaysia. The adjacent Stadium Merdeka and Stadium Negara will be retained as heritage buildings.

* Construction of new highways including the Ampang-Cheras-Pandan, Elevated Highway, Guthrie-Damansara Expressway, Damansara-Petaling Jaya Highway, Pantai Barat-Banting-Taiping Highway, Sungai Dua-Juru Highway and Paroi-Senawang-KLIA Highway

* Allocation of RM850 million for infrastructure support for corridor and regional development. Iskandar Malaysia (RM339 million), Northern Corridor Economic Region (RM133 million), East Coast Economic Region (RM178 million), Sarawak Corridor of Renewable Energy (RM93 million), Sabah Development Corridor (RM110 million).

* Bumiputera Property Trust Foundation (BPTF) to launch a syariah-compliant Bumiputera Property Trust Scheme of RM1 billion


* RM85 million to provide infrastructure facilities to facilitate construction of hotels and resorts in remote areas with the potential to attract tourists.

* RM50 million to construct several shaded walkways in the KLCC-Bukit Bintang vicinity.

* Development of world's first integrated eco-nature resort at a cost of RM3 billion by Nexus Karambunai in Sabah to commence next year.

* Implementation of the Feed in Tariff (FiT) mechanism under the Renewable Energy (RE) Act to allow electricity generated from RE by individuals and independent providers to be sold to electricity utility companies.

* Pioneer Status and Investment Tax Allowance for the generation of energy from renewable sources and energy efficiency activities to be extended until Dec 31,2015.

* Import duty and sales tax exemption on equipment for the generation of energy from renewable sources and energy efficiency to be extended until Dec 31, 2012.

If your life’s an open book, beware — Shaun Seow

I think this is a very good article that everyone should take note of.

If your life’s an open book, beware — Shaun Seow

February 23, 2011

FEB 23 — It came a month ago, that straw in the wind.

My Facebook friend was appointed “Mayor” of a local Mexican restaurant. I knew that status meant he was the most “checked in” visitor at the restaurant via the Foursquare app. I did not think much of it then, apart from a mental note to visit.

Then Friend#2 started “checking in” and has been updating, almost obsessively, on where she has been dining.

I get a sense that Friend#2 aka Gourmand will soon be checking into a slimming centre.

I feel I am about to face the whole enchilada, now that Facebook has opened to Singapore’s two million plus accounts its version of “check-in” called Places.

Just this past weekend, the first since Places’ debut, I have been regaled with visits to Sentosa Cove (tai-tai’s weekend home), Shangri-la Hotel’s Line restaurant (last Chinese New Year binge) and Ma Kwang@Middle Road (presumably for acupuncture treatment; another mental note).

To life’s great mysteries, I would add why people “check in” using Foursquare, Places and the like, along with why some (600 million people, including two teens in my household) live their lives like an open book on Facebook, sharing the minutiae of their everyday existence.

Narcissism? Whatever the reason, there must be strong emotional appeal to “check in”. I have heard pragmatic reasons for doing so.

A friend is hoping for chance encounters with people he knows. Another cites peace of mind from regular “check ins” by her young daughter living in London.

A third reason was rather bizarre, at least to me: All the updates go towards a 21st century diary, so that this friend would know exactly where he has been on any day by simply looking at his “check ins”.

To be sure, not everyone has jumped on the “check in” bandwagon. But once mobile coupons are awarded for “check ins” in a big way, the momentum should pick up as it has in the United States and some European countries.

A buck off a Starbucks latte on “check in,” or a free Fajita on your fifth “check in”? Before long, “check ins” could be salsa hot.

It helps that “checking-in” takes just a few taps on a smartphone. Most of these apps will ask you if you allow them to know your location.

Once you click “allow,” you will be able to share your location with friends, find out in real time where your friends are (if they are using the same app), and discover new places in your neighbourhood.

Alas, that much-touted serendipity could be discovering my tai tai friend’s plush home in Tanglin, where she lives with her husband while not on Sentosa. It is a location she has “checked in” before, which will be obvious to those reading her Wall that it was left vacant last weekend.

I hope she knows who her “friends” are — the ones she shares her updates with on Facebook. She may not realise this but her “check ins” could be cyberspace equivalents to walking around Colonia Centro (Mexico City’s most dangerous neighbourhood) in Manolo heels and slinging a Louis Vuitton Avant-Garde Pochette with 20-dollar bills sticking out.

All right. That may have been an exaggeration. She did not totally “open” her empty house to burglars as some early naive Facebook users had done to theirs by putting their postal address on the Wall AND posting “out of town” updates.

Still, never underestimate the will or wiles of those looking for empty homes to burgle.

Consider another scenario: her updates could be an invitation to stalkers or kidnappers. Equally undesirable, no?

Label me fear monger if you will, but I would like to point my tai tai friend to some simple do’s and don’ts when using location based services.

In this regard, I found some useful tips offered recently by Microsoft:

— Never “check in” from home. Also, do not include GPS coordinates in tweets, blogs or social networking accounts.

— Never geo-tag photos of your home.

— Check location privacy settings on phones, social networking sites and online applications.

— Be discerning in who you are adding to your location based service network and keep your location data away from public view.

If all this sounds like good old common sense, that is because it is. If you do not tell a stranger in the real world where you are at any point in time, you should not be doing that in the virtual world.

But staying “safe” is going to be more difficult going forward.

The number of location based services is mushrooming, going beyond Foursquare and Places to include photo sharing tools. And with incentivised “check ins”, sharing your current location can be as addictive as say, tortilla chips.

Here is a mental grenade to end. Even if you do not “check in”, someone sitting in front of a server farm who knows your name, gender and address could still easily track your current location.

Big Brother-creepy? Calm down.

He is someone employed by your local telephone operator, which has orbiting satellites to thank for that capability.

For years, telephone operators have been cautious in exploiting this due to subscribers’ privacy concerns, though that is about to change, as telcos seek to monetise this intimate knowledge through location based mobile advertisements.

Take SingTel for instance, which says on its website that its location-based advertising feature allows advertisers to send targeted ad messages that “can be further personalised according to the time and locations”.

I have not been served a location based ad by SingTel or any telco yet. But I do hope that in the same spirit of “check in” tools, telcos will ask me to opt in to their location based advertising, rather than treat my current location as another data point.

If the latter does indeed happen, I know I shall be telling my operator to take a hike (not my first choice of words but I have to be guided by my editor on what is printable). Or as they say in Mexico, go “freir asparagos” (fry asparagus). — Today

* Shaun Seow is the Deputy CEO of MediaCorp who suspects he will soon be succumbing to “check ins” for free skinny lattes.

* This is the personal opinion of the writer or publication. The Malaysian Insider does not endorse the view unless specified.

Bangsar Shopping Centre constantly reinvents itself to keep up with competition


Upgrades to the BSC in Bangsar are over as there’s no more space left.

BANGSAR Shopping Centre (BSC), which was developed some 20 years ago by Bandar Raya Developments Bhd (BRDB), is still a successful and thriving mall today.

This is despite having to face competition from malls such as Mid Valley Megamall, Bangsar Village I & II and Tropicana City Mall, which are all located within a radius of less than 5km.


John Sironic likens BSC’s lasting power to how Madonna has remained relevant after all these years.

BRDB group retail operations head John Sironic likens BSC's lasting power to how the Queen of Pop, Madonna, has remained relevant after all these years.

“The key is never to stay still, like the Madonna Principle. The reason she has been able to be around for so long (in the music scene) is because she's constantly reinventing herself,” he tells StarBizWeek.

“That's how we have been around for so long. We can't rest on our laurels. We need to keep reinventing ourselves and be up-to-date with the latest trends,” Sironic adds.

According to Sironic, BSC started off about two decades ago with just a single (East) wing.

“About 10 or 12 years ago, we added a new (West) wing,” he says.

In February 2008, BRDB invested RM250mil to upgrade BSC as it felt that the time was right to “reinvent.”

“The mall had been around for so long and it was starting to look a little old. So, we redressed the mall both internally and externally,” Sironic says.

Upgrades, which included a new annex and a 12-storey office block at the back of the mall, took over a year to complete.

“We completed the construction in July of 2009. The job could have been done a lot faster but to do that, we would have needed to close down the mall.

“But we did not do that because we did not want to cause inconvenience to our shoppers,” Sironic says.

The refurbishment of BSC saw the mall increase its floor space to 325 sq ft from 262 sq ft previously. The number of shops also increased to 170 from 126 before.

Sironic also says the addition of new stores was timely as people had become more affluent over the years and had better spending power.

“We felt that it was time to make the mall more contemporary and current. We also felt that we owed it to our tenants, some of which also upgraded to larger lots.”

Sironic says that during the upgrading process, BRDB also took the opportunity to “reshuffle” its tenant mix a little for the better.

“We did some retail zoning and decided to cluster certain tenants in certain areas. So now, you have tenants that specialise in information technology in one area, services for women on one side and home furnishing or jewellery in certain locations.”

The need for reinvention is necessary, especially as needs to compete with malls such as Bangsar Village I & II, which are arguably its closest competitors.

Bangsar Village I “opened its doors” in 2004. Sironic admits that BSC did experience a slight drop in shoppers when the new mall started.

“Initially, there was an impact as shoppers were curious to see what they had to offer. However, people are creatures of habit and after a while they go back to the mall that they had been shopping at for so long.”

Sironic argues that BSC is different from its nearest competitors.

“BSC has a large F&B (food & beverage) offering. The layout of our mall is also different. We have an open front and it is not shaped like a box.

“Even our entrance has no doors and this provides an inviting, resort-like feel.”

Despite conducting the renovations in the thick of the global financial crisis, Sironic says BSC did not see any real drop in shoppers.

“We think this was because we (BSC) have been here for quite a while and our customer base is quite loyal.”

BSC's shoppers generally comprise a more affluent crowd especially expatriates.

“We get a lot of expatriates because they live within the (Bangsar) area. Our mall has sort of become like their backyard. A lot of them come here in simple clothes, wearing a pair of shorts and slippers. We're not a shopping centre that requires you to dress up.”

Sironic says BSC has always positioned itself as a lifestyle, boutique mall that has niche tenants offering niche products.

“We are not intentionally expensive (in terms of product offering). We have small boutique retailers that don't necessarily attract a mass crowd.

“However, I think it is a misconception that we only attract expatriates or only high-end shoppers. You get a large local crowd as well and despite our niche tenant mix, we cater to all income segments.”

Despite having niche tenants within its premises, Sironic says BRDB is open to any kind of tenant that is interested in setting up shop at BSC.

“We don't want cannibalisation, in that we don't want to have tenants that offer the same kind of products. However, we're open to all tenants. We never say never. But for now, our retail mix is complete.”

Pulling in the crowd

One of BSC's key anchor tenants is Cold Storage supermarket, which is a popular attraction for shoppers.

Sironic says it is a misconception that prices of goods and products at BSC's Cold Storage outlet are overpriced.

“From the discussions that we have with them, we understand that they regularly conduct price checks with other competitors to remain competitive.”

Other than Cold Storage, Sironic says other tenants are equally important in terms of “pulling in the crowd.” “They also act as anchors in their own way.”

Many successful malls today have a cineplex as part of their tenant mix. Some time back, BSC had a couple of cinemas but no longer. Sironic says there are no plans to have a movie theatre at BSC.

“For cinemas to be successful, you need a huge area to accommodate multiple cinemas. Because we're not a large mall, we do not want to cater too much space only for movie theatres.”

According to Sironic, the average rental rate at BSC ranges from as low as RM3 per sq ft to RM50 per sq ft.

“It's a wide range and depends on location and usage,” says Sironic. According to him, about 32% of the mall's floor space comprises F&B tenants, which is unusually high for a typical mall.

“We have a wide range of F&B tenants, which include American fast food, coffee shops, fine dining, lifestyle and outlets that cater to a much younger crowd. We want to have a mall where anyone can come and just enjoy themselves.”

BRDB is also planning to open up a 10,000 sq-ft food court in BSC by mid-year.

It also plans to offer free shuttle services from the Bangsar LRT to the mall by next month.

“Once the food court opens and together with the new shuttle service, we expect to attract more customers into the mall, Sironic says.

Sironic says BSC organises three types of promotional events to attract shoppers. First, it hosts activities that are done by external parties.

Case in point is local Peugeot distributor Nasim Sdn Bhd which launched its 308 cc Cabriolet convertible at BSC last month.

“Other promotional activities are done by our tenants themselves and then, there are also calendar-based or festive events.”

Sironic says Christmas is often its peak period in terms of sales, followed by the Chinese New Year festive season.

“Christmas is also a big period because it's the year-end and a time when people get their bonuses,” he says.

BRDB's Grade-A office block, BRDB Tower, meanwhile, currently has a 50% take-up rate. Sironic says BRDB intends to fully lease the 12-storey block by the third quarter of this year.

“Our tenants include banks RHB and Al-Rajhi. There's also a gym and a neurological specialist coming, he says, adding that BRDB is offering “Grade-A” office rates to its tenants.

Sironic says BRDB targets tenants that can also take advantage of the mall's services and facilities.

For now, upgrades to BSC are over, he says. “There's just no more space. We've expanded as much as we can.”

However, setting up a new BSC in another location is definitely a possibility, he adds.

“A new BSC is possible. We're always looking for opportunities. It (setting up a new mall) could be done either independently or via a joint venture.”

By The Star

Rich say don’t need MRT, but poor welcome it

Rich say don’t need MRT, but poor welcome it

February 17, 2011
Trains are parked on a Taipei Metro line. A proposed KL MRT system has met with opposition in affluent residential areas. — WikiCommons
KUALA LUMPUR, Feb 17 — Wealthy residents have dismissed the need for the Klang Valley mass rapid transit (MRT) system, unlike low-income earners who hailed it for its convenience.

Damansara Heights residents’ association president Tan Sri Abdul Aziz Abd Rahaman said his neighbours would likely not use the MRT as they preferred to drive their luxury cars.

“They’ll still go on their Jaguars,” Abdul Aziz told The Malaysian Insider recently.

“People in our area will not use this (the MRT). People from other areas... pass through our area to go to town. That makes the whole place jammed (already),” he added.

Abdul Aziz also pointed out that land was scarce in the affluent neighbourhood, which counts ministers, tycoons and top civil servants as among its residents.

“[There is] no more land in our area. The whole place will be congested,” said Abdul Aziz, a one-time managing director of flag carrier Malaysia Airlines.

“So we want to know exactly where is it and how are they going to plan to do it,” he added.

Taman Tun Dr Ismail (TTDI) residents’ association president Mohd Hatim Abdullah also said his neighbours were unlikely to use the TTDI station, which will be located near the TTDI market.

“People who live there already own four or five cars,” said Hatim.

He added that TTDI residents in Kuala Lumpur also objected to the 1Utama MRT station as it would likely worsen traffic congestion on the Damansara-Puchong Expressway (LDP).

“The LDP now is very congested. During construction period, what will happen to the traffic?” he asked.

“They (the MRT stations) are both at our entry and exit points,” he added.

Hatim pointed out that the proposed location of the 1Utama station was on TTDI land next to the LDP headed towards Kuala Lumpur.

He said TTDI residents wanted the 1Utama station to be moved to a more suitable location nearby, such as the Bandar Utama golf driving range.

The driving range is located behind the 1Utama shopping mall in Petaling Jaya.

“The driving range is perfect,” said Hatim, pointing out that it was larger than the current proposed location.

The RM36.6 billion Klang Valley MRT project will have 35 stations along its first line that stretches 51km from Sungai Buloh to Kajang with four rail interchanges, according to documents released in the project website.

Eight stations between KL Sentral and Maluri will be underground as 9.5km of the Sungai Buloh-Kajang (SBK) line will be built under the capital city.

Land Public Transport Commission (SPAD) CEO Mohd Nur Ismal Kamal has reportedly said that the cost of underground works would be five to 10 times higher on a per km basis if the line were to go underground, depending on geological conditions.

Groundworks for the SBK line is due to start this July 16 and will be completed in 2016.

There are two other proposed lines under the MRT.

Hatim also suggested that the TTDI station be relocated to Damansara Uptown, a commercial area.

“It can serve Taman Tun, Tropicana shopping centre, Uptown, DJ (Damansara Jaya), DU (Damansara Utama), (and) Damansara Kim. That area’s perfect,” said Hatim.

Sunway Damansara residents said The Curve MRT station would mar the aesthetic image of their neighbourhood in Petaling Jaya.

“If you look at it, Sunway Damansara and the surrounding areas, Mutiara Damansara, are basically hot market areas,” said Sunway Damansara residents’ association president Winslow Wong.

“With the massive columns to support the MRT line, it’s not going to contribute to the aesthetic value,” he added.

Wong pointed out that the MRT station would cause massive traffic jams on Persiaran Surian, which is already congested during peak hours.

“Persiaran Surian is already very narrow with condominiums on both sides, especially nearer to The Curve,” said Wong.

An environmental impact assessment (EIA) report by the project’s environmental consultant ERE Consulting Group warned that significant traffic congestion would affect Persiaran Surian, the LDP and Jalan Semantan in Damansara Heights.

Bandar Utama residents similarly expressed concerns about traffic congestion that may potentially be caused by the 1 Utama and The Curve MRT stations.

“We are worried about the traffic,” said Bandar Utama residents’ association chairman Lim See Meng.

“The jam will be... backed up all the way to DU,” he said.

Low income-owners like the residents of Kampung Sungai Balak in Kajang, however, welcomed Malaysia’s largest infrastructure project.

“If the project does not affect our houses, we have no problem,” said village head Mohd Tahir Salleh.

The EIA report released on Monday said Kampung Sungai Balak residents may be forced out of their homes, which will be the third time they are affected by land acquisition.

But Tahir said the public display of the alignment showed that the proposed Taman Mesra MRT station avoided the village.

“It involves empty landlots... and goes through old roads,” said Tahir.

Batu 11 Cheras residents also supported the MRT project.

“It is very convenient for our area. So far, no complaints,” said Batu 11 Cheras village head Alex Neo.

Affluent neighbourhoods in other countries have similarly opposed big-ticket development projects that are proposed near them, using initiatives which are termed “Not In My Backyard” (NIMBY).

NIMBY protests reportedly stopped the construction of a railway line from Glasgow Central to East Kilbride in Scotland in 1989. The proposal had involved tunnelling under residents’ back gardens.

The MRT is an entry-point project identified for the Greater Kuala Lumpur/Klang Valley National Key Economic Area under the Economic Transformation Programme.

Prime Minister Datuk Seri Najib Razak said last December that the implementation of the project is expected to generate a gross national income (GNI) of between RM3 billion and RM4 billion beginning in 2011 until 2020.

He had said that between RM8 billion and RM12 billion was expected to be generated in terms of spin-offs from the construction of the MRT project.

The proposed alignment map for the SBK line is up for public viewing until May 14 at seven locations across the city.

They are Kuala Lumpur City Hall, Petaling Jaya City Council, Shah Alam City Council, Selayang Municipal Council, Kajang Municipal Council as well as the Bangsar LRT station and the SPAD office in Menara Dayabumi.

The public can provide their feedback on the project via email to feedback@kvmrt.com.my or through the SPAD toll free line at 1-800-82-6868.

The detailed environmental assessment impact report has been uploaded for public viewing at the Department of Environment’s website.

MRT system to spark more JVs, M&As for land

KUALA LUMPUR: The Mass Rapid Transit (MRT) project is expect to spark more joint ventures and mergers and acquisitions (M&As) by property developers to secure strategic land banks near rail lines, says HwangDBS Vickers Research associate director Yee Mei Hui.

Yee said on Friday, Feb 18 companies without land bank near proposed MRT stations were likely to start hunting for land plots to benefit from expected gains from having property projects near the massive public transport infrastructure.

"For those without land bank, they'll need to act quite fast,” she said at a press briefing on property plays related to the MRT project.

Yee, who covers the property and gaming sectors, also said three mixed developments near MRT stops would set the tone for future property plays along the MRT system.

The three projects are KL Eco-City near the Mid Valley area, Capers in Sentul East and Damansara City in Damansara Heights.

By The EDGE Malaysia

Will an MRT affect the price of your properties?


File picture shows MRT and surrounding properties. - The Star

PETALING JAYA: While some property consultants and analysts have been bullish on the overall impact of the mass rapid transit (MRT) on property prices, another group of property consultants has reservations about the blanket “price hike” touted by their counterparts and other parties.

This second group of property consultants, together with sources familiar with the project, have an alternative view.

Their conclusion is: not all properties affected by the Sg Buloh-Kajang line will have a positive impact. In fact, there will be properties that will have an adverse impact.

A source who declined to be named said: “If you can hear it, see it, feel the vibration, but cannot access it, your property will be negatively impacted. You want it (MRT) close, but not too close.”

The 50km line that begins from Sg Buloh will splice through the monorail and light rail transit (LRT) in the city and head south towards Kajang, affecting a total 91,900 properties along the way. Of these, 82,700 units, or 90%, will be residential units with a total population of about 341,000. About 40% of these are located in the Sg Buloh-Semantan area, and 46% in the Cheras-Kajang area.

It will be the country's largest infrastructure project, reportedly costing RM36.6bil.

A source said: “Logically speaking, people should not oppose the MRT or any form of public transport. But, if it is going to affect your standard of living, either by the noise, vibration or visual impact, then it is logical for them to oppose it.

“Imagine this: you live in a quiet, serene area for years, and all of a sudden you have the MRT line running in front or behind your property. Your serenity is broken, your standard of living is negatively impacted, and so will the value of your property.”

The noise level will be tremendous. The MRT begins from 6am to midnight. In time to come, the MRT will run every 1.8 minutes.

The affected areas are Section 4 and 6 of Kota Damansara; Pelangi Damansara condominium; Taman Tun Dr Ismail; Damansara Utama; Section 17/52 Petaling Jaya; Bukit Bandaraya; Jalan Bukit Ledang; Bukit Damansara; Taman Desa Aman; Taman Connaught; and Taman Koperasi.

According to the executive summary posted on the Department of Environment website, as the line enters Kota Damansara, which is predominantly residential and remains so until TTDI, the line visual, vibration and noise level will be significant to properties in that area. And as the line enters the residential area of Cheras, the visual impact, noise and vibration level will also impact negatively on the property values there.

“Most of the measured noise levels exceeded the recommended limit for suburban residential area and urban residential area,” the executive summary said.

Reports that property prices would go up by between 100% and 500% were “too bullish”, said the group of property consultants. A property developer who has several projects in Kota Damansara said the visual impact, noise and vibration would affect values negatively.

Last week, the Land Public Transport Commission (LPTC) and Prasarana exhibited the alignment at Mid-Valley Megamall. They are seeking a location in Petaling Jaya to exhibit the alignment.

The MRT route will be displayed for three months at local authority offices in the Klang Valley, in Bangsar LRT station and at LPTC in KL Sentral. The environmental impact assessment will be displayed for one month from Feb 14 to March 14.

By The Star

Plantation and property sectors boost IOI results

PETALING JAYA: IOI Corp Bhd's net profit rose 12.8% to RM520.2mil in the second quarter ended Dec 31, 2010 compared with RM461.2mil in the previous corresponding period mainly on higher contribution from its plantation and property divisions.

Revenue for the second quarter stood at RM3.97bil, which was 29.7% higher than RM3.06bil posted in the same period last year.

The company proposed an interim single-tier dividend of 80%, or 8 sen per ordinary share of 10 sen each, which is not taxable in the hands of the shareholders, be declared in respect of the financial year ending June 30, 2011.

In a filing with Bursa Malaysia, IOI said the plantation segment reported a 14% increase in operating profit to RM363.7mil for the second quarter compared with RM319. 9mil previously.

“The higher profit is mainly due to higher crude palm oil (CPO) and palm kernel prices realised. Average CPO price realised for second quarter in this financial year (FY11) is RM2,800 per tonne comp ared with RM2,225 per tonne for the second quarter of FY10,” it said, adding that the average palm kernel price realised for the second quarter o f FY11 was RM1,979 per tonne compared with RM1,089 per tonne previously.

It said the higher operating profit for property development and investment was mainly due to gains recognised on disposal of investment properties amounting to about RM61mil during the second quarter.

“Despite the higher profits achieved in refining activities, the resource-based manufacturing segment recorded lower profits mainly due to fair value losses on the adoption of FRS 139,” it said.

During the second quarter, the total fair value losses on derivative contracts recognised were about RM73mil.

For the first six months ended Dec 31, 2010, IOI's net profit jumped 8.4% to RM1.02bil from RM939.6mil in the same period last year. Its revenue was RM7.49bil, which was 18.2% higher th an RM6.34bil previously. IOI said the group was expected to perform satisfactorily in the current financial year underpinned by strong palm oil and palm kernel prices and a resilient property market.

CIMB Research said at 40% of its full-year forecast and 42% of consensus projections, IOI's core net profit for the firs t six months was broadly in line as it expected better secondhalf earnings.

“The second-quarter resourcebased earnings missed our forecast because of RM73mil fair value losses on derivative contracts following the adoption of FRS 139 in the current year. However, this was offset by a RM61mil gain on the disposal of investment properties,” the research house said.

It said the second-quarter results also included a RM20.6mil loss on foreign-denominated debts, which was a reversal from a gain of RM159.7mil in first quarter.

An analyst told StarBiz that IOI's results for the quarter under review were within market expectation and the group was expected to post better results in the second half.

“The group is expected to do well in the second half given the higher CPO price as well as manufacturing earnings, particularly a stronger earnings from downstream business. The current CPO price is over RM3,000 per tonne, which is higher than RM2,700-plus per tonne realised in the first half,” the analyst said.

By The Star

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