THE WEEK THAT WAS' Knight Frank Malaysia
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Research
‘THE WEEK THAT WAS’
15th January – 21st January 2018
The Maples Niseko, Hokkaido, Japan
Knight Frank Malaysia
Prepared by:
Research & Consultancy
Knight Frank Malaysia
Suite 10.01, Level 10 Centrepoint South
Mid Valley City, Lingkaran Syed Putra
59200 Kuala Lumpur
T: +603 228 99 688
F: +603 228 99 788
Table of Contents
(A) RESIDENTIAL .............................................................................................. 6
Westside III project in Desa ParkCity ahead of schedule, says GDB
(theedgemarkets.com, 17th January 2018).................................................................... 6
1,000-strong crowd at ballot for Platinum Victory’s affordable housing
projects (EdgeProp.my, 16th January 2018) .................................................................. 6
Sime Darby Property launches Azira in Bandar Bukit Raja (The Star, 18 th
January 2018) .......................................................................................................................... 7
Sime Darby Property to launch 1,000 affordable units this year (The Edge
Financial Daily, 17th January 2018)................................................................................... 7
Luxury homes close to nature (The Star, 21st January 2018).................................. 8
80,000 Rumawip homes by year end (The Star, 16th January 2018) .................... 8
Hektar Aneka aims to build more affordable homes (The Malaysian Reserve,
17th January 2018) ................................................................................................................. 8
More affordable homes to be built by PR1MA in Sabah (The Sun Daily /
Bernama, 20th January 2018) ............................................................................................. 9
MBSB sees affordable housing to boost project financing to RM1.9b (New
Straits Times, 16th January 2018) ................................................................................... 10
Maybank Islamic's rent-to-own scheme now open to public
(sunbiz@thesundaily.com, 16th January 2018) ......................................................... 10
(B) MIXED DEVELOPMENT ............................................................................ 11
Berjaya Land’s tall order (Focus Malaysia, 13th – 19th January 2018) ............... 11
Aspen inks partnership with LG smart products (theedgemarkets.com, 118th
January 2018) ....................................................................................................................... 12
Poised to transform town (The Star, 21st January 2018) ....................................... 12
(C) COMMERCIAL / OFFICE ........................................................................... 13
Wisma MCA to be redeveloped (Focus Malaysia, 13th – 19th January 2018) 13
Jabil finds home in refurbished mall (The Star, 17th January 2018) .................. 13
(D) RETAIL ....................................................................................................... 14
Shopping malls turn to F&B for better yield (The Malaysian Reserve, 15 th
January 2018) ....................................................................................................................... 14
IGB expands Dave’s Deli chain to Sydney (The Edge Financial Daily, 19 th
January 2018) ....................................................................................................................... 15
Poh Kong aims to outdo strong FY17 growth (theedgemarkets.com, 17th
January 2018) ....................................................................................................................... 15
Online sales bring cheers to online retailers (The Malaysian Reserve, 15th
January 2018) ....................................................................................................................... 15
CJ Wow shop eyes RM120m sales (New Straits Times, 16th January 2018)... 16
(E) INDUSTRIAL / PLANTATION .................................................................... 16
Tasco sells warehouse, land in Port Klang for RM17.5m
(theedgemarkets.com, 15th January 2018)................................................................. 16
Click to the table of contentsPetChem kick-starts 2018 with output at new Kuantan plant (The Malaysian
Reserve, 15th January 2018)............................................................................................. 16
Dominant Enterprise to expand capacity at BM, Dengkil plants (The Star,
16th January 2018) .............................................................................................................. 17
CCM to boost chlor-alkali output at Pasir Gudang plant (The Star, 18th
January 2018) ....................................................................................................................... 17
(F) INVESTMENT............................................................................................. 17
Fostering closer ties between China and Sabah (The Star, 20th January 2018)17
(G) CORPORATE ............................................................................................. 18
Advance Synergy expands property biz with Klang Valley commercial
buildings buy (theedgemarkets.com, 16th January 2018) .................................... 18
Aspen to invest RM58.8m in Selangor residential project (EdgeProp.my, 15 th
January 2018) ....................................................................................................................... 19
Titijaya has ongoing, future projects of RM12.3b GDV (The Edge Financial
Daily / Bernama, 15th January 2018) ............................................................................ 19
Titijaya lines up RM1.45b new launches in FY18 (The Edge Financial Daily,
16th January 2018) .............................................................................................................. 20
Sime Darby Property FY18 sales seen exceeding FY17’s(The Edge Financial
Daily, 19th January 2018) .................................................................................................. 20
Jalan Semarak parcels returned to Felda (EdgeProp.my, 15th January 2018) 21
Mofaz seeks to list construction unit in 3 years (The Edge Financial Daily,
15th January 2018) .............................................................................................................. 21
Gabungan AQRS and Tera Capital agree to more time for One Jesselton
project (sunbiz@thesundaily.com, 16th January 2018).......................................... 22
Sunsuria eyes large scale infrastructure projects (The Star, 17th January 2018)22
MMC liquidates JV company with Zelan (theedgemarkets.com, 16th January
2018) ........................................................................................................................................ 23
(H) REIT / FUND............................................................................................... 23
Pavilion REIT expects 5-6% rental rate growth in 2018 (The Malaysian
Reserve, 16th January 2018)............................................................................................. 23
MQREIT 4Q earnings slump to RM3.32m, proposes final gross income
distribution of 4.16 sen (theedgemarkets.con, 19th January 2018)................... 23
(I) TOURISM / LEISURE ................................................................................. 24
Malaysia's first Banyan Tree resort to open in June (theedgemarkets.com,
15th January 2018) .............................................................................................................. 24
WCT, EPF launch New World Petaling Jaya Hotel (The Edge Financial Daily,
18th January 2018) .............................................................................................................. 24
Avillion Hotel Group opens its fifth hotel in Cameron Highlands
(theedgemarkets.com, 17th January 2018)................................................................. 25
KL to welcome its first Fairfield by Marriott by 2020 (EdgeProp.my, 18 th
January 2018) ....................................................................................................................... 25
International firms can help promote local products (New Straits Times, 18 th
January 2018) ....................................................................................................................... 26
Click to the table of contentsDeveloper introduces shared ownership model (EdgeProp.my, 19th January
2018) ........................................................................................................................................ 26
Crest Builder gets RM149.5m hotel building job (theedgemarkets.com, 18th
January 2018) ....................................................................................................................... 27
MNC Wireless to take up units in Malacca's Marina Point for luxury
homestays (sunbiz@thesundaily.com, 15th January 2018) .................................. 27
Higher international arrivals benefit local theme parks (The Malaysian
Reserve, 15th January 2018)............................................................................................. 28
RM46mil project in Melaka to include 2.5km cable car line and theme park
(The Star, 19th January 2018) .......................................................................................... 29
ESCAPE appoints events consultant to enhance services (The Star, 19 th
January 2018) ....................................................................................................................... 29
Xiamen Airlines makes inaugural Beijing-KK flight (The Star, 16th January
2018) ........................................................................................................................................ 29
(J) INSTITUTION ............................................................................................. 30
Ekuinas sells Tenby Education Group (theedgemarkets.com, 17th January
2018) ........................................................................................................................................ 30
JM Education targets listing on LEAP Market (The Star, 17th January 2018) . 31
Doctor2U aims Oceania market (The Malaysian Reserve, 17th January 2018)31
Mexter’s healthcare business takes off (The Star, 20th January 2018) ............. 32
(K) INFRASTRUCTURE ................................................................................... 33
Three local consortiums, one Chinese consortium submit tenders for MRT
Circle Line (theedgemarkets.com, 19th January 2018) ........................................... 33
First phase of Iskandar Malaysia BRT to be ready by 2021 (the Star, 19th
January 2018) ....................................................................................................................... 33
Malaysia-Singapore ink agreement on RTS (Bernama, 16th January 2018) ... 34
JB-S’pore rapid transit system to start by Dec 31, 2024 (EdgeProp.my, 16 th
January 2018) ....................................................................................................................... 34
Japan HSR equity offer to Malaysia, Singapore companies (EdgeProp.my,
15th January 2018) .............................................................................................................. 34
YTL Corp’s KL-Singapore HSR operating company bid looks promising (The
Edge Financial Daily, 18th January 2018) .................................................................... 35
ECRL set to transform the East Coast (The Star / Bernama, 19th January 2018)36
HSS associate gets China letter for ECRL job (The Star, 18th January 2018).. 36
(L) ISKANDAR MALAYSIA ............................................................................. 36
Sunway Citrine Hub to steer Lakeview Precint growth (New Straits Times,
19th January 2018) .............................................................................................................. 36
Capital World launches Malaysia’s biggest indoor theme park
(EdgeProp.my, 15th January 2018) ................................................................................ 36
Johor aiming to become high-value tourist destination (The Star, 20th
January 2018) ....................................................................................................................... 37
Mah Sing partners EduCity to provide fully furnished accommodation
(theedgemarkets.com, 17th January 2018)................................................................. 37
Click to the table of contentsForest City developer signs MoU with schools (The Star, 20th January 2018)38
Johor MB: RTS will boost cross-border economy between Malaysia and
Singapore (The Star, 20th January 2018) ..................................................................... 39
(M) OTHERS ..................................................................................................... 39
DBKL: Register with us if you rent your properties out for short stays
(EdgeProp.my, 19th January 2018) ................................................................................ 39
Another 55 owners of The Arc@Cyberjaya units to sue Meda Inc's Maju
Puncakbumi over GRR scheme (sunbiz@thesundaily.com, 17th January
2018) ........................................................................................................................................ 40
Comfortable living quarters for construction workers (The Malaysian
Reserve, 19th January 2018)............................................................................................. 40
Labuan IBFC to unveil transformational plan (New Straits Times / Bernama,
17th January 2018) .............................................................................................................. 41
All domestic economic sector to grow in 2018: SERC (New Straits Times, 17 th
January 2018) ....................................................................................................................... 41
Labour force participation and unemployment rates drop in November
(sunbiz@thesundaily.com, 15th January 2018) ......................................................... 42
KL much more affordable for rental accommodation, Singapore 8th most
expensive (NST Business, 16th January 2018) ........................................................... 42
(N) OVERSEAS ................................................................................................ 43
Malaysia, Singapore successfully delivers Marina One, DUO (NST Business,
15th January 2018) .............................................................................................................. 43
MTD Capital to build RM1.77b ‘Putrajaya’ in the Philippines (EdgeProp.my,
20th January 2018) .............................................................................................................. 44
Berjaya Land unit submits arbitration notice to recover sum from China mall
sale (theedgemarkets.com, 19th January 2018)........................................................ 44
T7 Global receives shareholders' approval for RM31m property disposal in
Birmingham (NST Business, 15th January 2018) ....................................................... 45
EWI achieves cumulative sales of RM7.7b from UK and Australian projects
(theedgemarkets.com, 16th January 2018)................................................................. 45
Creation of long-term asset ownership platform for Battersea power station
(theedgemarkets.com. 18th January 2018)................................................................. 45
UK RICS house price gauge unexpectedly picks up from four-year low (The
Star, 18th January 2018) .................................................................................................... 46
SP Setia raises the bar with UNO Melbourne (The Star, 18th January 2018) . 47
Amcorp Properties JV to finalise first HK purchase by Q1 of 2018 (The Star,
18th January 2018) .............................................................................................................. 47
China’s home prices rise in most cities in 6 months (The Malaysian Reserve,
19th January 2018) .............................................................................................................. 48
Chinese demand drives construction boom in Cambodia (Reuters, 16th
January 2018) ....................................................................................................................... 49
China's Wanda sells interests in high-profile London property project (The
Star / Reuters, 17th January 2018) ................................................................................. 49
Click to the table of contentsJD.com widens South-East Asia presence by investing in Vietnam’s Tiki.vn
(The Star / Reuters, 16th January 2018) ....................................................................... 50
China luxury sales rebound as millennials snap up cosmetics, handbags —
report (Reuters, 17th January 2018) ............................................................................. 51
Lower investments abroad by China in 2017 (The Star, 17th January 2018) .. 51
Click to the table of contents(A) RESIDENTIAL
Westside III project in Desa ParkCity ahead of schedule, says GDB
(theedgemarkets.com, 17th January 2018)
• GDB Holdings Bhd said construction of the RM245 million Westside III mixed
development project in Desa ParkCity is ahead of schedule.
• Work had commenced on December 21, 2015 and the contractual completion
date is December 20, 2018.
• GDB was appointed as the main contractor by Perdana ParkCity Sdn Bhd.
• Westside III is a 49-storey condominium which is currently the tallest structure in
Desa ParkCity. It consists of 469 residential units, with facilities that include a
jogging track, a water park, secret garden, sun deck, kids' fun zone, and
multipurpose hall.
1,000-strong crowd at ballot for Platinum Victory’s affordable housing projects
(EdgeProp.my, 16th January 2018)
• About 1,000 potential homebuyers showed up to ballot for Platinum Victory Sdn
Bhd’s affordable homes under the Rumah Wilayah Persekutuan (RUMAWIP)
scheme: VISTA Wirajaya and VISTA Wirajaya 2, on Sunday afternoon.
• The 35-storey VISTA Wirajaya and 30-storey VISTA Wirajaya 2 consist of 515
and 438 homes respectively, offering a total of 953 condo units.
• The former will offer homes of 884 sq ft while the latter will offer homes of 850 sq
ft and 1,000 sq ft.
• Each home is priced at RM300,000.
• Facilities for VISTA Wirajaya and VISTA Wirajaya 2 are comparable to the
condominium facilities.
• Both projects are located 200m from Taman Melati LRT (Light Rain Transit)
Station and is within walking distance to Tunku Abdul Rahman University
College, making them very attractive to homebuyers.
• VISTA Wirajaya and VISTA Wirajaya 2 were over-subscribed as much as three
times the units offered ever since they opened for registration in the RUMAWIP
website in August 2017.
• Those who have registered for VISTA Wirajaya and VISTA Wirajaya 2 but have
yet to get their approval letters will be placed on the waiting list.
• RUMAWIP registrants should also consider VISTA Langkawi, which is located
along Jalan Langkawi, Setapak that has all the convenience of city living with
amenities nearby like hospital, LRT station, bus stops and shops. The homes in
this scheme will have built-ups of 926 sq ft.
• Platinum Victory has more launches in the offing.
Click to the table of contentsSime Darby Property launches Azira in Bandar Bukit Raja (The Star, 18th January
2018)
• Sime Darby Property is launching its latest residential development, Azira in
Bandar Bukit Raja.
• The development comprises 111 units of 20’ x 75’ double-storey link homes with
a built-up area from 1,901 sq ft to 2,275 sq ft and comes with four bedrooms and
four bathrooms.
• Offering freehold ownership, the prices start from RM678,888 before Bumiputera
discount with the completion date slated for January 2020.
• Azira is also the first launch in Bandar Bukit Raja that will fully incorporate the
‘Bandar Bukit Raja (BBR) Home Design Principles’ concept focusing on four key
areas of Natural Ventilation, Natural Lighting, In Harmony with Nature, and Multi-
Generational Homes.
Sime Darby Property to launch 1,000 affordable units this year (The Edge
Financial Daily, 17th January 2018)
• Sime Darby Property (SD Property) plans to launch about 1,000 affordable
apartment units this year under the Selangor government’s housing programme,
Rumah Selangorku, by mid-2018. The affordable apartments to be priced
between RM200,000 and RM270,000, will have built-up area between 900 sq ft
and 1,000 sq ft.
• SD Property is looking to launch 1,000 units by May or June this year in the City
of Elmina and in Putra Heights, Subang Jaya.
• The 5,000-acre (2023.43-hectare) City of Elmina freehold township development
by SD Property, with an estimated gross development value (GDV) of RM27
billion, covers Denai Alam, Bukit Subang, Elmina East and Elmina West.
• The units to be built under the Harmoni project at Elmina West, with GDV of
RM155 million, will be housed in three residential blocks of 19 to 20 storeys
each, with 562 units in total. The project will be complemented by 11 units of
shop offices.
• Separately, through a collaboration with the youth and sports ministry, SD
Property has named the 36-acre Elmina Community Park as “Elmina TN50
Community Park” to support the aspirations of the TN50 youth initiative on
sustainability, including for greener, affordable housing and quality living
standards.
• SD Property will also launch part of the 1,700 units of affordable apartments that
it is developing at Harmoni 1 in Putra Heights, to make up the remaining target of
1,000 affordable homes it wants to launch by mid-year. Harmoni 1 has an
estimated GDV of RM359 million.
• Harmoni will be SD Property’s third affordable housing project under Rumah
Selangorku, after Bandar Bukit Raja launched in 2015, and Harmoni 1 in Putra
Heights.
Click to the table of contents• Meanwhile, SD Property aims to launch its double-storey link homes at Denai
Alam and Elmina West, with built-up areas of between 24x80 ft and 20x70 ft. The
homes will be sold between RM600,000 and RM800,000 per unit.
Luxury homes close to nature (The Star, 21st January 2018)
• The luxurious Astana Parkhomes in Sungai Petani, Kedah, include the stylish
Natalea and Natasya single-storey link bungalows. Both types are set on plots of
land measuring 40ft x 80ft.
• The Natalea units are priced from RM385,000 and have built-up areas of 32ft x
50ft while the Natasya units are priced from RM388,000 and have built-up areas
of 32ft x 49.5ft.
• Also part of this urban community are Davinea single-storey bungalows that sit
on land measuring 60ft x 90ft and with built-up areas of 33.5ft x 52.5ft.
• Another township-style project in Sungai Petani, Puncak Surya has been
developed progressively for over a decade with a range of homes that epitomise
the notion of ‘affordable style’.
• Its latest components are the Neris single-storey linked bungalows that sit on
plots sized at 40ft x 80ft. Designed to offer spacious living, they come with built-
ups of 30.5ft x 45ft. Prices start from RM299,000.
• Both Astana Parkhomes and Puncak Surya are developed by Eupe Kemajuan
Sdn Bhd, a subsidiary of Eupe Corporation Berhad.
80,000 Rumawip homes by year end (The Star, 16th January 2018)
• The Federal Territories Ministry is close to offering 80,000 affordable homes
under the Rumawip programme in Kuala Lumpur by end of 2018.
• Buyers, however, are cautioned to adhere to the moratorium where they are not
allowed to sell their units in the next 10 years. This is to avoid property market
speculation and it benefits the next generations of buyers.
• As of last month, the Rumawip programme had reached 89.44% of the targeted
units offering a total of 71,554 units in Kuala Lumpur and Putrajaya.
Hektar Aneka aims to build more affordable homes (The Malaysian Reserve, 17th
January 2018)
• Hektar Aneka Sdn Bhd plans to develop more affordable housing projects in
Kuala Lumpur (KL), particularly under the Rumah Wilayah Persekutuan
(Rumawip) campaign, in line with the government’s mandate build 80,000 units
under the scheme by 2020.
• The company’s sole focus is to support the government’s aspiration to develop
more affordable housing projects to boost the nation’s home ownership level,
particularly among the younger buyers.
Click to the table of contents• The company has bought several pockets of land in strategic areas in KL, which
it hopes to transform into another Bumiputera and Islamic housing concept by
year-end, following the recently unveiled Residensi Hektar,.
• Hektar Aneka is expected to contribute approximately 2,400 units to the
Rumawip scheme once its condominium project Residensi Hektar, which has an
estimated gross development value (GDV) of RM700 million, is completed by
December 31, 2021.
• Since the condominium sits on a plot of Malay Reserve land, it is targeted at
Bumiputera buyers.
• Currently, the project has garnered a 60% take-up rate and is expected to be
fully sold in the immediate future.
• The development comprises five high-rise blocks and is strategically located with
choice proximity to many highways for easy access to the city, surrounding
suburbs and also to interstate destinations.
• Residensi Hektar is located next to Gombak Main Market along Jalan Gombak.
The three-bedroom, two-bathroom units are priced between RM266,000 and
RM299,500.
More affordable homes to be built by PR1MA in Sabah (The Sun Daily / Bernama,
20th January 2018)
• The state government will build more affordable homes in Sabah to enable the
people, especially those in the middle-income group (M40), to own a house.
• The prices of homes offered by PR1MA Corporation Malaysia (PR1MA) are
lower by 10% to 15% than those built by the private sector.
• The new housing development of PR1MA @ Menggatal targets those in the M40
group. It features a community lifestyle living concept and offers 1,200 units
priced at RM243,000 to RM300,000 for unit sizes of 850 sq ft to 1,000 sq ft. The
project will soon commence and is expected to be completed within three years.
• The PR1MA @ Menggatal project, equipped with various facilities such as
closed-circuit television cameras, a multipurpose hall, nursery and surau, is
among those open for sale in the first quarter of 2018.
• Other projects to sell their units in the first three months of this year are PR1MA
@ Borneo Cove (999 units), PR1MA @ Kota Marudu (360), PR1MA @ Ranggu
(1,300), PR1MA @ Kinarut Selatan (502), PR1MA @ Pusat Bandar Sandakan
(750) PR1MA @ Kota Marudu 2 (360).
• Over 5,000 units at an estimated gross development value (GDV) of RM1.25
billion will be sold in the first quarter of 2018 for those in the M40 group in Sabah
who are keen on quality housing equipped with various facilities to suit their
lifestyle.
Click to the table of contentsMBSB sees affordable housing to boost project financing to RM1.9b (New Straits
Times, 16th January 2018)
• Malaysian Building Society Bhd (MBSB) sees more growth opportunities in
affordable housing this year, which will boost its project financing for the sector
close to RM1.9 billion.
• The bank will finance another eight more Rumawip projects with financing
facilities of RM700 million.
• MBSB has so far financed nine Rumawip projects with total approved facilities
amounting to RM1.17 billion.
Maybank Islamic's rent-to-own scheme now open to public
th
(sunbiz@thesundaily.com, 16 January 2018)
• Maybank Islamic Bhd’s rent-to-own (RTO) scheme, dubbed HouzKEY, is now
open to the public for application.
• The scheme was first launched last November whereby it was only made
available to Maybank employees.
• Since the launch, it has recorded about 13,000 visits to its portal and 2,000 of
them have indicated interest on the product.
• Close to 70% of them are from the target age group of between 25 and 34 years
old.
• Through the portal www.Maybank2own.com, the public can now browse through
a range of properties by 12 established developers which include EcoWorld Bhd,
SP Setia, Mah Sing Properties, Sime Darby Property, Gamuda Properties, UEM
Sunrise, Selangor Dredging Bhd, and Mitraland. It is expected that seven more
developers will come on board by the end of this month.
• HouzKEY has been designed to provide an alternative solution for home
ownership through an innovative scheme which only requires three months of
rental deposit and the customer can immediately move into their dream house.
The customers are given the option to purchase the property after renting for at
least one year at a pre-agreed price.
• HouzKEY is the first such RTO homeownership plan in the country to be fully
enabled on a digital platform, with the application and submission of supporting
documents all being done online.
• Once an applicant chooses a property on the online portal and applies to rent it
under HouzKEY, the bank will provide a decision within 24 hours working day,
following which the customer must make the three-month rental deposit within
seven days.
• After the agreement is signed, the property is locked in at a fixed rental price for
five years and the customers can migrate to Maybank mortgage seamlessly after
Click to the table of contentsone year of renting, or they can continue renting with 2% step up on the 6th year
until their tenure end.
(B) MIXED DEVELOPMENT
Berjaya Land’s tall order (Focus Malaysia, 13th – 19th January 2018)
• Berjaya Land Bhd, the property arm of Berjaya Group, has set its sights on
tripling revenue for the coming year.
• Projects expected to contribute to the developer’s ambitious taget include The
Ritz-Carlton Residences Kuala Lumpur, The Tropika in Bukit Jalil, bungalow
developments at The Peak in Ampang and Kensington Gardens in Penang, as
well as Timur Bayu condominium in Shah Alam.
• The Ritz-Carlton Residences Kuala Lumpur
One of the developer’s most iconic projects in the city centre, developed in
partnership with international hospitality label, The Ritz-Carlton.
The RM1.21 billion branded residences project is a 48-storey tower in a
larger 1.1-hectare Berjaya Central Park integrated development at the
junction of Jalan Ampang and Jalan Sultan Ismail, with the 48-storey Menara
Bangkok Bank as its sister tower.
In total, The Ritz-Carlton Residences offers 288 residential suites with built-
ups from 1,023 sq ft to 4,284 sq ft in eight layouts, with average selling price
of RM2,384 per sq ft to RM3,002 per sq ft.
Launched in May 2014, the freehold project was handed over by Berjaya
Corp Bhd’s subsidiary, Wangsa Tegap Sdn Bhd last December 8, and is
currently managed by The Ritz-Carlton Hotel Company LLC.
• The Tropika in Bukit Jalil
This is Phase 2 of The Link 2 mixed development in Bukit Jalil.
The Tropika, on site spanning 2.62 hectares, features 861 residential units in
four towers, along with initial plans for 14 retail units and 14 dining outlets for
an estimated gross development value (GDV) of RM730 million.
Built-up areas range from 997 sq ft to 1,049 sq ft with pricing from RM665
per sq ft to RM815 per sq ft.
The first tower is tentatively slated for launch in April.
Completion is expected by first half of 2022.
• Timur Bayu in Shah Alam
This is a RM333 million freehold condominium project on a 3.44-hectare site
in Berjaya Park, Shah Alam.
It will comprise 456 units in three high-rise blocks and 62 residences in eight
low-rise blocks. The units with built-ups from 1,000 sq ft to 1,200 sq ft have
target pricing of RM540 per sq ft to RM570 per sq ft.
It is scheduled for launch in the third quarter
• The Peak in Taman Tun Abdul Razak
This project features 88 bungalow lots with land area from 8,624 sq ft to
71,994 sq ft and price points from RM321 per sq ft.
Launched in October 2005 and completed three years later, the project has
a GDV of RM300 million.
• Kensington Gardens in Penang
Located adjacent to the Penang Turf Club, the project offers 69 bungalow
lots with land areas from 6,000 sq ft to 10,000 sq ft, priced at RM671 per sq
ft.
It forms the first phase of its larger Jesselton Villas project with a total GDV
of RM1.3 billion in four parcels.
Click to the table of contentsAspen inks partnership with LG smart products (theedgemarkets.com, 118th
January 2018)
• Aspen (Group) Holdings has entered into a collaboration with South Korea's LG
Electronics Inc.
• Under the collaboration, LG will offer its products, services and technology
solutions to the group to enhance its real estate developments in South-east
Asia, including Aspen Vision City. Aspen Vision City is a 245-acre (99 hectares)
freehold mixed-development project between Aspen Group and IKEA Southeast
Asia located in Batu Kawan, Penang.
• This comes as Aspen is seeking to outfit its developments with the latest
functional technology — such as smart business solutions, home appliances
and/or home automation solutions which are Internet of Things (IoT) enabled —
to drive down costs and enable efficiency.
• Under this agreement, LG will also set up their first academy in Malaysia, where
LG will provide training in skills specialisation, mechanical training and support in
after sales service of LG's products. This is so as to build an ecosystem with
highly skilled mechanics that can support the needs and solutions of the products
and services provided by both Aspen Group and LG.
Poised to transform town (The Star, 21st January 2018)
• MBI International’s two integrated township developments of Desa Ku and MBI
Soraya are all set to change the face of Kulim, Kedah.
• Located at Padang Meha, the mega projects will also stand tall as unique tourist
attractions with their distinct lifestyle concepts.
• Desa Ku, sprawled across 248 acres of freehold land, will be a vibrant township
with 2,000 residences and shop offices. There will also be a 12-acre Agro Park
and a 47,000 sq ft convention centre. The former strives to reduce the carbon
footprint on the environment while the latter is set to be the biggest convention
centre in the northern region.
• Categorised into five phases, Desa Ku offers single, double and three-storey
bungalows, semi- detached and terraced homes, all featuring aesthetic
architecture and generous living spaces.
• Meanwhile, the double-storey shop offices come with lavish built-ups, an open
layout and ample parking spaces. Fronting the Butterworth-Kulim Expressway
(BKE), excellent visibility is assured.
• Desa Ku is easily accessible via the BKE leading to the Kulim Hi-Tech Park and
is well-connected to established townships like Sungai Petani, Lunas, Seberang
Jaya and Butterworth.
• The proposed Kulim International Airport and highway connecting Kulim to Bukit
Mertajam in Penang, when completed, will further enhance the value of Desa Ku.
• The 3,651-acre MBI Soraya development is divided into 13 world-class districts -
agro tourism, commercial park, auto park, theme park, commercial facilities,
Click to the table of contentsinfrastructure zone, transportation hub, education park, commercial hub,
industrial park, medical tourism and residential (two precincts).
• Targeted for completion in 2020, Phase 1 of My Garden Villa is an open-resort
agro-tourism development spanning over 850 acres.
(C) COMMERCIAL / OFFICE
Wisma MCA to be redeveloped (Focus Malaysia, 13th – 19th January 2018)
• Plans are afoot for the 37-year old Wisma MCA in Kuala Lumpur to undergo a
massive facelift involving the redevelopment of its annexe block.
• Built in 1981, the freehold office building owned by Huaren Resources Sdn Bhd
is made up of a 23-storey office block and the annexe block.
• It is envisioned that the annexe block will be of similar height to the adjacent 23-
storey office block. Its upper floors will mainly be used as office space while the
lower floors will be made up of banquet and meeting halls.
• Existing tenants include Secret Recipe and Malayan Flour Mills Bhd.
Jabil finds home in refurbished mall (The Star, 17th January 2018)
• Multinational corporation (MNC), Jabil Inc, has secured its place as a tenant of
the Global Business Centre (GBC) in Penang at GBS@Mayang in Bayan Baru.
Jabil Sdn Bhd (Jabil Global Business Centre) signed the tenancy agreement with
Penang Development Corporation (PDC).
• As a major tenant of the building, Jabil will occupy two floors covering over
72,700 sq ft, which will allow the company a future head count expansion of
1,000 executives.
• The new office will support its capabilities enhancement plans, which will include
applying a robotic process automation investment in the centralised procurement
function.
• Jabil has a long, established 23-year history in Penang. The MNC started its
operations from a leased office building and now occupy several locations in
Penang which house its manufacturing and shared services operations.
• On April 7 last year, it was announced that the state government would spend
RM10 million to refurbish Mayang Mall building into a Global Business Services
(GBS) centre known as GBS@Mayang for investors.
• About 110,000 sq ft of office space would be made available.
Click to the table of contents(D) RETAIL
Shopping malls turn to F&B for better yield (The Malaysian Reserve, 15th January
2018)
• Shopping malls in the Klang Valley are undergoing a “transformation period”, with
more retail operators across all tiers remodelling their retail spaces into food and
beverage (F&B) outlets.
• Experts believe the integration of F&B outlets within a shopping space serves as
a hedge against increasing competition, amid the aggressive rolling-out of new
supplies of retail outlets.
• Malaysia Retail Chain Association (MRCA) had projected earlier in 2017 that
shopping malls were expected to allocate 30% of their retail spaces to be
converted into F&B outlets compared to the previous ratio of between 15% and
20%.
• Experts have since revised the ratio upwards to more than 30% as operators are
pressured to introducing aggressive promotions, while integrating F&B outlets
across different sets of retail genres.
• One of the leading retail operators, Sunway Shopping Malls — which is part of
the Sunway Group conglomerate — is already reinventing its strategies to
convert its malls from a traditional buying and selling place into a lifestyle
destination.
• The social aspect of retail as a one-stop lifestyle centre is becoming more
prominent. Hence, the need for more F&B outlets is becoming more significant,
in line with the consumers’ evolution. There is a significant integration taking
place among many retail outlets.
• In Sunway Pyramid alone, there are currently approximately 170 F&B outlets,
which is a significant number for a first-tier mall within an integrated surrounding.
• Additionally, stand-alone malls and newer supplies that are about to enter the
market are expected to face challenging times ahead compared to first-tier malls
such as Sunway, One Utama, Pavilion Kuala Lumpur and Suria KLCC, which are
all leveraging on the integration of their surroundings and amenities.
• At the moment, retail operators are burdened with approximately six million sq ft
of additional retail spaces in the Klang Valley alone, which is expected to enter
the market over the next two to three years.
• The situation worsens as consumers get more cautious with their spending
habits — anticipating the outcome of the upcoming general election, apart from
having to deal with the rising cost of living, risk of unemployment, as well as other
macro and micro economic factors.
• The cloudy days projected for the retail segment are also reflected in Retail
Group Malaysia’s downward revision of the industry’s annual growth forecast for
2017 from 3.7% to 2.2% for a total sales turnover of RM100 billion against its
earlier projection of RM101.4 billion.
Click to the table of contents• With the aggressive rollout of more F&B outlets amid booming demand, retailers
also need to equip themselves with unique selling points to stay ahead of the
curve of facing stiff competition.
IGB expands Dave’s Deli chain to Sydney (The Edge Financial Daily, 19th January
2018)
• IGB Corp Bhd is expanding its portfolio with the opening of Malaysia’s own
Dave’s Deli in its Tank Stream Hotel in Sydney, Australia.
• The collaboration between Tank Stream Hotel and Dave’s Deli aims to offer a
high-quality range of dishes served in under 10 minutes and at an affordable
price. The philosophy is to go beyond takeaway food by providing made-to-order
good value meals using fresh produce and quality ingredients, served quickly but
in high-quality surrounds, differentiating the venue from food court outlets and
American chain stores.
• Dave’s Deli has 12 outlets in Malaysia and the Sydney outlet is its first
international venture.
Poh Kong aims to outdo strong FY17 growth (theedgemarkets.com, 17th January
2018)
• Poh Kong Holdings Bhd is expecting to better the double digit growth in net profit
achieved in its financial year ended July 31, 2017 (FY17) in FY18.
• This comes with the extended upward trend in gold prices, as well as
expectations of improving consumer demand.
Online sales bring cheers to online retailers (The Malaysian Reserve, 15th
January 2018)
• Thanks to technology, retailers have and are moving out from brick-and-mortar
stores to join the cyber world. As a result, street retail sales are accelerating on
the Internet, offering shoppers better deals because they do not have to worry
about the overhead expenses which traditional stores have to deal with.
• MyCybersale 2017, a five-day online sales festival organised by the National ICT
Association of Malaysia along with the Malaysia Digital Economy Corp, managed
to rack in a gross merchandise value (GMV) of RM311 million, exceeding the
RM300 million target set for the year.
• RM39 million of the RM311 million GMV were derived from international
shoppers which surpassed the export revenue target of RM20 million. It was a
phenomenal growth of over 254% from the 2016 export revenue of RM11 million.
• According to ShopBack Malaysia, the average spending per customer surged
more than threefold during the recent the 12.12 online shopping celebration
compared to the Single’s Day 11.11.
• The average spending per customer during the 12.12 was RM485, whereas for
11.11 it was US$76 (RM302.04). This was due to the increase in travel bookings
made for the year-end holidays along with Christmas gift purchases, as well as
apparels purchases for the New Year.
Click to the table of contents• ShopBack Malaysia collaborated with more than 30 online partners during 12.12,
among them were Lazada, Zalora, 11street as well as Booking.com.
• On a separate note, founder of Christy Ng Sdn Bhd, who started her business in
her mother’s living room years back, now owns five brick-and-mortar stores that
delivers to 30 different countries. 60% of her customer base comes from the
online store, whereas the remaining 40% of customer base are from its physical
outlets.
CJ Wow shop eyes RM120m sales (New Straits Times, 16th January 2018)
• CJ Wow Shop, a media commerce company that has established a joint venture
with Media Prima Bhd, is on track to double its revenue in 2017, targeting sales
of up to RM120 million based on the success of its sales campaign throughout
the year.
• The company’s achievement and future performance depends on a number of
factors, including credibility and the capability to establish trust with consumers
through televised product demonstrations.
• Operating across a broad range of platforms and channels — 20 million daily
viewers on television, seven million tonton users and more than 170,000 CJ Wow
Shop mobile app subscribers, the company has the potential to reach audiences
nationwide, regardless of where they are.
• Established in 2016, CJ Wow Shop is a home shopping network that is
accessible via television, online and mobile.
• Apart from Media Prima, the company also has a joint venture with South
Korea’s CJO Shopping Co Ltd, Asia’s No. 1 TV home shopping operator.
(E) INDUSTRIAL / PLANTATION
Tasco sells warehouse, land in Port Klang for RM17.5m (theedgemarkets.com,
15th January 2018)
• Tasco Bhd is disposing of 7.8 acres of industrial land in Port Klang, Selangor to
Onostatic Sdn Bhd for RM17.5 million.
• Its wholly-owned subsidiary, Titian Pelangi Sdn Bhd, entered into a sale and
purchase agreement with Onostatic last Friday.
• The warehouse and office buildings sited on the plot of the land are currently
rented by Titian Pelangi to Tasco for its warehousing business.
Note: The property consists of a parcel of leasehold industrial land held under Title HS(M)
6200, PT 4166, Mukim of Kapar, District of Klang, State of Selangor. The land,
measuring 339,676 sq ft, is erected upon with a warehouse and building that bears
postal address Lot 12, Lengkungan Sultan Hishamuddin, North Klang Straits Industrial
Area, Kawasan 20, Mukim Kapar, 42000 Port Klang, Selangor. The property has a
lettable aea of 144, 648 sq ft.
PetChem kick-starts 2018 with output at new Kuantan plant (The Malaysian
Reserve, 15th January 2018)
Click to the table of contents• BASF Petronas Chemicals Sdn Bhd, a subsidiary of Petronas Chemical Group
Bhd (PetChem), has recently concluded the start-up of a new plant in Gebeng,
Kuantan.
• The plant, the first of its kind in South-East Asia, successfully produced its first
batch of highly reactive polyisobutene (HR-PIB). It has a total annual capacity of
50,000 metric tonnes.
Dominant Enterprise to expand capacity at BM, Dengkil plants (The Star, 16th
January 2018)
• Dominant Enterprise, which manufactures environmentally friendly engineered
wood mouldings, laminated wood panel products, plans to expand its production
capacity through its Bukit Mertajam and Dengkil plants.
• The company also distributes and exports a wide range of wood panel products
worldwide.
• Its plants are in Johor Bahru, Kulai, Muar, Sungai Buloh, Penang in Malaysia and
Ho Chi Minh in Vietnam, which are adequate for present demand.
• The newly Bukit Mertajam plant may complement the existing production
capacity of the Penang’s factory and allow the company to cater more effectively
to demand from northern Peninsular Malaysia, as well as southern Thailand.
• Dominant intends to build a factory in Dengkil which is slated to start operations
in 2020. This factory will place the company near its central peninsular customers
with hope to capture a larger market share.
• It also plans to expand its geographical coverage to South Africa, the Philippines,
and the Middle East as well as produce new products annually to remain
innovative and competitive.
CCM to boost chlor-alkali output at Pasir Gudang plant (The Star, 18th January
2018)
• Chemical Company of Malaysia Bhd is spending RM68.5 million to increase
chlor-alkali products output at its plant in Pasir Gudang, Johor.
• The project is expected to start by the end of this quarter.
• Chlor-alkali products are commodity chemicals required by a wide variety of
industries. Its production typically consumes a lot of electricity.
• In November 2016, CCM completed a rationalisation exercise of its Pasir
Gudang Work 1 (PGW1) and Pasir Gudang Work 2 plants in Johor Bahru to
modernise the facilities.
(F) INVESTMENT
Fostering closer ties between China and Sabah (The Star, 20th January 2018)
• China plans to expand trade and other forms of exchange with Sabah and this
has been further boosted by the Belt and Road Initiative.
Click to the table of contents• Companies, such as the China National Complete Plant Import and Export
Corporation and Huawei, have signed memoranda with local partners and there
has been growing investment in the fields of agriculture, finance and business
over the years.
• Sabah had also become the favoured destination of Chinese tourists, In 2016,
380,000 visited Sabah and this rose to 430,000 in 2017.
(G) CORPORATE
Advance Synergy expands property biz with Klang Valley commercial buildings
buy (theedgemarkets.com, 16th January 2018)
• Kuching-based Advance Synergy Bhd is acquiring two commercial properties —
one located in Jalan Yap Ah Shak here and the other at Temasya Glenmarie,
Shah Alam — for a combined RM40.95 million.
• Its wholly-owned subsidiary Advance Synergy Realty Sdn Bhd has signed a sale
and purchase agreement with Petaling Garden Sdn Bhd for the proposed
acquisition of a 70% stake in a detached commercial five-storey building block in
Jalan Yap Ah Shak for RM18.9 million.
• Separately, Advance Synergy Realty signed a deal with Temasya Development
Co Sdn Bhd for a 70% stake in a detached commercial four-storey building in
Temasya Glenmarie for RM22.05 million.
• Petaling Garden is wholly owned by I&P Group Sdn Bhd, a wholly-owned unit of
S P Setia Bhd, while Temasya Development is a 66.06%-owned subsidiary of
Petaling Garden and a 30.1% associate of UDA Holdings Bhd.
• The remaining 30% interest in both properties will be acquired by Kibar Konsep
Sdn Bhd.
• The proposed acquisition forms part of Advance Synergy's new strategy to
expand into property investment and diversify its property business from East
Malaysia to Peninsular Malaysia.
• The group believes that the proposed acquisition will contribute positively to
future earnings, given the prospects of the long-term growth and demand for co-
working and serviced office spaces in the Klang Valley.
Notes: (1) Property 1 is a detached commercial 5-storey office block with car park on freehold
land held under Title Geran 49661, Lot 5108, Seksyen 41, Bandar Kuala Lumpur,
District of Kuala Lumpur, Wilayah Persekutuan, bearing postal address No. 17, Jalan
Yap Ah Shak, 50300 Kuala Lumpur. The property built on land measuring 722 sq m
has gross and net floor areas of 3,394.7 sq m and 1,878 sq m respectively.
(2) Property 2 is a detached commercial 4-storey building block on freehold land held
under Title Geran 332990, Lot 53432, Bandar Glenmarie, District Petaling, Selangor
bearing postal address No. 9, Jalan Kajibumi U1/70, Seksyen U1, Temasya
Glenmarie, 40150 Shah Alam, Selangor Darul Ehsan. The building erected on land
measuring 3,314 sq m has gross and net floor areas of 5,178.48 sq m and 4,319.20
sq m respectively.
Click to the table of contentsAspen to invest RM58.8m in Selangor residential project (EdgeProp.my, 15th
January 2018)
• The Aspen Group will invest RM58.8 million to redevelop a piece of commercial
land in Selangor through a joint venture with the Selangor Agricultural
Development Corp (PKPS).
• The 12,185 sq m land in Seri Kembangan will be developed into a residential
project with a gross development value (GDV) of about RM300 million.
• Sales are expected to begin from 2019.
• The land is in a prime location within a mature residential township with
established infrastructure and amenities.
• PKPS will receive RM47.59 million in cash, with the remaining RM11.25 million
payable with apartment units at a 10% discount to the market rate.
• Aspen is a Penang-based property development company.
• The group is well known for its Aspen Vision City project, a 245-acre freehold
mixed-use development in Bandar Cassia, Batu Kawan, Penang.
• Aspen Vision City carries a total GDV of RM8 billion comprising a central
transport hub, an international school, condominiums and suites, hotels, medical
centre and healthcare facilities, shopoffices, apartments, a central island park,
office towers, a shopping mall, and commercial and retail spaces.
Titijaya has ongoing, future projects of RM12.3b GDV (The Edge Financial Daily /
Bernama, 15th January 2018)
• Titijaya Land Bhd, a leading Malaysian property developer, has currently on-
going and future projects of about RM2.3 billion and RM10 billion in gross
development value (GDV) respectively.
• The urban developments and land bank are located in strategic locations across
Greater Kuala Lumpur, Penang and in Kota Kinabalu.
• To date, the developer has completed over RM3 billion worth of properties.
• The recent signing with Tokyu Land Corp (TLC) reflects its vision in partnering
reputable companies to strengthen its capabilities and enhance the value of its
developments.
• TLC, focusing on urban and transit-oriented development, wellness and overseas
business, is a real estate company founded in 1953. It is the core company of the
Tokyu Fudosan Holdings Group, which is listed in the First Section of the Tokyo
Stock Exchange and Nikkei 225 Index.
• TLC invested RM47 million in Titijaya’s unit Epoch Property Sdn Bhd through a
conditional share subscription agreement in November last year.
Click to the table of contents• The agreement entails the subscription of the 47 million units representing 100%
of Class A shares in Epoch Property for an on-going project, the Mizu Residence,
in Ara Damansara, Selangor.
• Launched on Saturday, the project has a GDV of RM300 million.
Titijaya lines up RM1.45b new launches in FY18 (The Edge Financial Daily, 16th
January 2018)
• Despite the overall still soft local property market, Titijaya Land Bhd in the
second quarter ended December 31, 2017 of financial year 2018 (2QFY18) is
expected to match its sales of about RM100 million achieved in 1QFY18, which
helped to sustain its unbilled sales at about RM400 million.
• Similar to 1QFY18, the bulk of the sales in 2QFY18 has come from the RM916
million four-block H2O Residences in Ara Damansara, one the most sought-after
addresses in the Klang Valley.
• At about RM835 per sq ft, the high-rise residential project is being priced at a
slight premium to similar products in the vicinity. However, the sales have been
strong, as it is able to differentiate itself from the others by branding itself as an
aquatic themed project with, among others, a facade that resembles interlocking
ice cubes, a swimming pool with an LED display of marine life and a children’s
water playground, and a posh glass-walled gym overlooking the swimming pool.
Given the compact sizes of 450 to 1,000 sq ft, the units are considered affordable
in absolute terms.
• Overall, Titijaya has lined up RM1.45 billion new launches in FY18, largely in the
affordable segment, such as high-rise residential units in Damansara West, Bukit
Subang (RM300,000 to RM450,000 per unit) and The Shore @ Kota Kinabalu
(RM455,000 to RM810,000 per unit), as well as compact serviced suites in
Riveria @ KL Sentral (RM340,000 to RM780,000 per unit).
Sime Darby Property FY18 sales seen exceeding FY17’s(The Edge Financial
Daily, 19th January 2018)
• The 5,000-acre (2,023.43-hectare) City of Elmina, which includes Elmina West
(2,661 acres), Elmina East (1,089 acres), Denai Alam and Bukit Subang (1,250
acres), is located along the Guthrie Corridor Expressway (GCE). With a
remaining developable area of 3,583 acres and remaining gross development
value (GDV) of RM20.4 billion, it is currently the biggest township in Sime Darby
Property’s portfolio. It contributes about 24% of the total remaining GDV of
RM85.9 billion.
• City of Elmina is located 21km west of Kuala Lumpur City Centre. The township
has good connectivity via the GCE (through Denai Alam and Elmina
Interchange), Shah Alam-Batu Arang Highway, New Klang Valley Expressway,
Kuala Lumpur-Kuala Selangor Expressway, and the proposed Damansara-Shah
Alam Elevated Expressway (DASH), which is slated for completion in 2020.
DASH will shorten the travelling time from Batu Arang-Penchala to 15 minutes
versus one hour by the old route.
• Year-to-date financial year 2018 (FY18), Sime Darby Property has launched
projects with a GDV of RM245.2 million in City of Elmina. For the second half of
FY18, the group is expected to launch another RM618 million GDV worth of
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