EMKAY Group, controlled by developer Tan Sri Mustapha Kamal Abu Bakar, plans to build RM4.3 billion worth of properties in Cyberjaya, Selangor, from 2010.

The future developments will add another 10 million sq ft of office space in Cyberjaya in several years, Mustapha Kamal said.

"The group is now looking at buying some 70 acres of prime land for that purpose," he said after a ceremony to mark the construction of an 11-storey office building at its NeoCyber project in Cyberjaya on Saturday.

The Emkay group is helping to develop Cyberjaya through major projects such as NeoCyber and MKN EmbassyTechzone.
The latter's development is a 60:40 joint venture with India's Embassy Group.

Until then, Emkay will first build eight office towers at MKN Embassy Techzone next year.

The office buildings will boast a gross development value of RM800 million, covering an office space of two million sq ft. It had bought 20 acres for the project.

State-owned Amanah Raya Bhd recently bought three completed office buildings at MKN Embassy Techzone development for a combined RM266 million.

Emkay has so far completed projects totalling RM291 million and an office space of 700,000 sq ft in Cyberjaya.

By 2011, it will have provided a total 3.5 million sq ft of office space.

On whether the looming economic recession would hamper the group's development plans, he said: "We have successfully gone through two recessions before. With this experience, God willing, we are confident that our future projects will go on as planned."

Meanwhile, Emkay has built 272 residential units and 205 shop offices at NeoCyber.

Being built in four phases since 2007, the development is into its third phase, which started last month and slated for completion by June 2010.

By Business Times (by Zuraimi Abdullah)

The Emkay Group expects to boost its revenue in Cyberjaya, Selangor, by opening up new land for development via its stake in Setia Haruman Sdn Bhd, the master developer of Cyberjaya.

Setia Haruman, 75 per cent held by Emkay and 25 per cent by the UEM Group, has the rights to sell land parcels and plan, design and develop the infrastructure in Cyberjaya from 1997 until the project is developed by 2019.

It has 2,832.8ha of land under its belt, of which 30 per cent has been developed.


Mustapha Kamal: Cyberjaya project is going to be a vibrant development

Emkay, controlled by property tycoon Tan Sri Mustapha Kamal Abu Bakar, had previously bought 18.6ha of land in Cyberjaya from Setia Haruman for RM143 million to develop NeoCyber, an integrated development; MKN Embassy TechZone, an information technology park; and Bangunan Mustapha Kamal.

It may buy more land to build data centres, more purpose-built commercial buildings and a university for local and international investors, Mustapha Kamal told Business Times in an interview recently.

The group also wants to sell land parcels via Setia Haruman to local developers to build high technology buildings for overseas and local clients.

"The investment that Emkay did (in Cyberjaya) has shown results. Many big names have come in. It proves that the Cyberjaya project is going to be a vibrant development," he said.

Rental rates at Cyberjaya have increased from RM3.50 per sq ft a year ago to RM4.50 per sq ft now.

Emkay is developing MKN Techzone, featuring four commercial blocks worth RM350 million, developed under Phase One, and eight buildings worth over RM600 million in Phase Two, in a 60:40 venture with India's Embassy Group.

State-owned Amanah Raya Bhd (ARB) recently bought two blocks in Phase One, and also Bangunan Mustapha Kamal for RM266 million.

The buildings, which offer more than eight per cent yields, have been tenanted to government agencies for 10 to 15 years.

ARB chairman Datuk Dusuki Ahmad has indicated that the group may buy two blocks in Phase Two.

Emkay is looking for buyers for the other two blocks in Phase One, where one has been leased to Pejabat Pengarah Tanah dan Galian. It is finalising a deal to lease the last block to a government agency.

"The strategy that we took was to construct the buildings, lease them, and then scout for buyers. Embassy is expected to attract new investments from India," Mustapha Kamal said.

Due to good response from tenants and buyers, Emkay plans to launch Phase Two next year, offering two million sq ft of office space.

"Techzone will be developed as a campus project where everything will be integrated. We will not stop our activities because of the current global uncertainties," he said.

In the pipeline is a plan to build an 18-hole golf course and residential units.

By New Straits Times (by Sharen Kaur)

CYBERJAYA: The Emkay Group plans to construct eight office buildings in Cyberjaya with a total gross development value (GDV) of over RM800mil, as it sees great prospects for such properties in the area.

Chairman Tan Sri Mustapha Kamal Abu Bakar said the buildings would be built on a 8ha-site and construction would probably start by end-2009.

“The projects would take about six years to complete,” he said after a press briefing yesterday on the disposal of its three office buildings to Amanah Raya Bhd for RM266mil. The three buildings are Bangunan Mustapha Kamal and block A and B of MKN Embassy Techzone.

Mustapha Kamal said the rental rates for office buildings in Cyberjaya were expected to grow further due to the aggressive development in nearby Putrajaya.

“The rental rates in the area had increased to RM5 per sq ft from RM1 about 10 years ago,” he said, adding that demand for office buildings was still robust in Cyberjaya.

On the impact of the global crisis, chief operating officer Peter Teh Heng Poh said the effect was minimal, as most of its projects had been sold.

“There has been a slowdown in the demand of certain kinds of properties, such as apartments, in well-developed areas,” he added.

Teh said the company would create more products that could cater to the needs of information technology companies and was currently involved in the development of data centres.

On Emkay’s financial status, he said: “We have a good cash flow and are not facing any financing problems as the banks are supportive.”

Meanwhile, Amanah Raya group managing director Datuk Ahmad Rodzi Pawanteh said the company would lease Bangunan Mustapha Kamal to the Education Ministry for 10 years.

“We are in negotiation to lease the two remaining buildings to government bodies as well,” he said.

On the possibility of injecting the three buildings into AmanahRaya Real Estate Investment Trust (ARREIT), Ahmad Rodzi said the proposal was possible but the company would leave it to ARREIT to decide.

Amanah Raya subsidiary AmanahRaya JMF Asset Management Sdn Bhd is the manager of main board-listed ARREIT.

By The Star (by Lee Kian Seong)

CYBERJAYA landowner Cyberview Sdn Bhd says that the average occupancy rate for offices in the MSC status area is at 94 per cent.

The demand for office space is so great that Cyberview will start work on SME Technopreneur Centre III a year ahead of schedule.

Cyberview had planned to start work on the third instalment of offices catered to small and medium enterprises in 2010.

Cyberview was set up by the government in 1996, with the Minister of Finance Inc owning 70 per cent and the remaining stakes held by different government agencies, which include the Multimedia Development Corporation (MDeC).

Between September 2007 and August 2008, the supply of office space in Cyberjaya had increased by another 1.05 million sq ft to 4.22 million sq ft.

Another additional 1.64 million sq ft of office space will be ready by the third quarter of 2009, bringing the total space for businesses in Cyberjaya to 5.86 million sq ft.

Cyberview managing director Redza Rafiq said interest in the intelligent city has also not waned, adding that MDeC is in talks with between five and six multinational corporations (MNCs) to set up base in the area. He did not elaborate.


MORE PROJECTS: MDeC is in talks with five to six multinational corporations to set up base in Cyberjaya, says Redza.

There are 474 companies located in Cyberjaya, 30 of which are MNCs.

Meanwhile, the master developer of Cyberjaya, Setia Haruman Sdn Bhd, is also upbeat about its housing projects in Cyberjaya.

Demand is now shifting to out-of-town buyers from just those working and living in Cyberjaya, said Setia Haruman chief operating officer Lao Chok Keang.

The Emkay group owns 75 per cent of Setia Haruman, which was appointed as master developer of Cyberjaya in 1998.

Setia Haruman has developed some 3,000 houses, of which 250 are high-end developments while the rest are medium-cost housing.

To date, some 750 medium-cost houses and about 200 high-end units have been sold. More medium-cost houses are expected to be built in the area to meet demand for homes within the RM200,000 to RM500,000 bracket.

By New Straits Times (by Presenna Nambiar)

Setia Haruman is considering a listing, either locally or overseas, in three to five years and venturing beyond Cyberjaya.


GROWING CONCERN:Lao says Setia Haruman intends to keep the business flourishing even after Cyberjaya is developed.

SETIA Haruman Sdn Bhd, master developer of the country's first information and communications technology (ICT) hub Cyberjaya, may plan an initial public offering (IPO) in three to five years to raise funds.

It may consider a local IPO or list on a foreign exchange, Setia Haruman chief operating officer Lao Chok Keang said.

He said Setia Haruman was considering venturing beyond Cyberjaya to stretch its boundaries.

"We are currently a single-project entity with only Cyberjaya in our hands. We want to run it as a growing concern so that the business can flourish even after Cyberjaya is developed," Lao said.

Setia Haruman, 75 per cent held by Emkay Group and 25 per cent by UEM Group, has the rights to sell land parcels as well as plan, design and develop the infrastructure at Cyberjaya from 1997 until the project is developed by 2019.

In an interview with Business Times in Cyberjaya, Lao said that Setia Haruman may buy land on the outskirts of Cyberjaya and in other high-impact areas in the country to build up the company.

It may also venture to Vietnam, Cambodia and eastern European countries looking at similar developments like Cyberjaya.

"Cyberjaya is a planned city and there're only a few in the world. We have to create a character to sell the idea," Lao said.

He declined to elaborate on plans or say if the company was in talks with any parties.

"Our people are well equipped to handle projects overseas. We have expertise in housing, infrastructure development and building construction that requires specific ICT needs."

In the financial years 2006 and 2007, Setia Haruman achieved more than RM500 million sales, with 10 per cent profit margin.

Lao said there will be an improvement this year as the company has been selling more land in Cyberjaya to developers eyeing high-impact projects.

Setia Haruman has formulated a five-year plan, ending 2010, to sell land parcels for housing, research institutions, hospital and colleges.

"While it is difficult to attract people to come here, we are saying that the cost is lower to operate in Cyberjaya. We are already seeing a number of big names establishing a base here," Lao said.

Setia Haruman is promoting the digital city with other stakeholders - Multimedia Development Corp (MDeC), Sepang City Council and Cyberview Sdn Bhd - to ensure its sustainability.

"The driver for Cyberjaya is the government's investment through MDeC in bringing information technology companies here," Lao added.

By New Straits Times (by Sharen Kaur)

SETIA Haruman Sdn Bhd is optimistic its RM200 million CBD Perdana 2 project in Cyberjaya will report a high take-up rate, amid current market uncertainties.

The two-year project, comprising signature retail-cum-corporate office suites, is earmarked for launching earliest by September this year.

The company, which the Emkay Group and the UEM Group hold a 75 per cent and 25 per cent stake respectively, is also launching 55 units of semi-detached houses priced more than RM800,000 per unit in December.


MASTER DEVELOPER: Setia Haruman chief operating officer Lao Chok Keang (left) and Balasundram looking at a model of the development projects for Cyberjaya

Setia Haruman corporate finance general manager Balasundram R. said Setia Haruman is confident of achieving positive sales from the two projects as they offer unique designs and features.

CBD Perdana 2 boasts a smart business environment and is suitable for companies wanting to adopt information technology in their businesses.

The suites will add 500,000 sq ft of office space to the current 3.7 million sq ft completed office space in the digital city by 2010, Balasundram said.

As the master developer of the 2,800ha Cyberjaya, Setia Haruman had previously developed over 200 high-end bungalow lots, 42 units of superlink homes fronting the lake and high-end condominiums dubbed "D'Melor".

The 120-unit D'Melor has been fully sold and tenanted, while more than 80 per cent of the bungalow lots have been taken up.

Balasundram said Cyberjaya's population, which stands at 35,000, is projected to grow to 60,000 by 2010, hence the need to build more housing.

"We want to ensure Cyberjaya has good ingredients to grow with the right product mix as international names are coming in," he said.

Balasundram said there has been interest from foreign parties looking to set up data centres in Cyberjaya, which will be the main activities there besides research and development centres.

Balasundram said 20 per cent of Cyberjaya has been developed year-to-date. 70 per cent of land in Cyberjaya is available for sale, while 10 per cent has been reserved for new projects.

By New Straits Times (by Sharen Kaur)

CYBERVIEW Sdn Bhd, which has four contracts in hand in Cyberjaya worth in excess of RM200 million, is eyeing more jobs, said managing director Redza Rafiq.

"A few local and foreign information technology firms have expressed interest to move to Cyberjaya. Discussions are still in initial stages. We are planning to design and construct buildings for them according to their specific requirements," Redza told Business Times.

"We have 100.8ha in our pockets ready for development. The areas are suitable to build data centres and for high-impact companies to operate from," he added.

Cyberview is currently building a global delivery campus for Satyam Computer Services Ltd, a leading global consulting and information technology services provider, for RM100 million.

Its other contracts are to build a knowledge workers' development institute for the nation, a four-storey data centre for a prominent local firm, and park-and-ride facilities to improve the transportation system in Cyberjaya.

"Satyam is planning to relocate from its existing premises to a bigger space. We are building the campus in two phases. The first phase will be completed by September and the second, by March next year," said Redza.

The building of the 300,000 sq ft data centre, meanwhile, is part of the company's programme to encourage local firms to do business in Cyberjaya.

The data centre will be operational by year-end. Redza, however, declined to identify the company.

It is learnt that the data centre is being constructed for E-Basis Bay Sdn Bhd, a unit of technology services and hardware solutions vendor Basis Bay Group.

By New Straits Times

CYBERVIEW Sdn Bhd, a government-linked entity mandated to spearhead the development of Cyberjaya, will launch its flagship housing project, myHome@Cyberjaya, for more than RM150 million by August.

It will build 1,000 units of affordable apartments, double-storey houses and two- and three-storey shopoffices in two phases over a span of four years to cater to the needs of the Cyberjaya knowledge workers.

Managing director Redza Rafiq told Business Times in an interview that the apartments and houses will be priced from RM88,000 to RM168,000 respectively, while pricing for the shop-offices is still being planned.


REDZA: Cyberview together with the other major stakeholders of Cyberjaya are all hard at work to ensure Cyberjaya's position is firmly entrenched in the global ICT map

"The 11.63ha myHome@Cyberjaya project will be our first residential development. All the units will be uniquely designed by award-winning architects. As the development progresses, we will invest in new projects to build corporate buildings suited to clients' specific requirements. We will also construct international schools," Redza said.

The main objective of Cyberview is to ensure that the development of Cyberjaya adheres the government's guidelines and aspirations and to advise it on Multimedia Super Corridor/Cyberjaya development matters.

It has 100.8ha in its pockets, of which less than 32ha have been utilised or are being developed.

The land was given up by Setia Haruman Sdn Bhd, the master developer of Cyberjaya, under a revamp exercise.

In 1999, Cyberview signed a development agreement with Setia Haruman granting it the right to develop 2,832ha in Cyberjaya as the master developer in exchange for 8.5 per cent return on equity, while Cyberview became the landowner.

By 2002, the development model became unsustainable and had to be restructured.

Cyberview was asked to come in by the government to save the Cyberjaya project from being derailed due to Setia Haruman's high gearing and its inability to service its obligations to the tune of RM3 billion.

Cyberview had taken over a substantial portion of the obligations and helmed the restructuring exercise for the project, which phased the remaining amount to give Setia Haruman breathing space and to ensure the development of Cyberjaya will be continued.

The exercise was concluded in May 2006. Under the exercise, Setia Haruman gave up its sale and development rights over a 101ha tract of land to Cyberview for RM500 million.

Initially, Setia Haruman was equally held by UEM World Bhd, Country Heights Holdings Bhd (CHHB), Landmarks Bhd and Tan Sri Mustapha Kamal Abu Bakar's Emkay Group.

In 2004, Mustapha Kamal bought over the shares from CHHB and Landmarks for RM100 million cash resulting in Emkay gaining 75 per cent control over Setia Haruman. UEM holds 25 per cent.

"With the restructuring exercise, Cyberjaya was able to move forward again and now houses more than 400 local and foreign corporations. The amount of office space is expected to breach the five million sq ft mark before the end of 2010, from 3.7 million sq ft currently," said Redza.

Emkay, which is one of the bigger private developers in Cyberjaya, will alone offer 3.5 million sq ft of office space by 2011.

"Cyberview, together with the other major stakeholders of Cyberjaya such as Multimedia Development Corp (MDeC), Majlis Perbandaran Sepang and Setia Haruman, are all hard at work to ensure Cyberjaya's position is firmly entrenched in the global ICT map," added Redza.

By New Straits Times (by Sharen Kaur)

Property unit finalising 40ha land deal with Setia Haruman, says company source



UEM Land Bhd will acquire about 40ha from Setia Haruman Sdn Bhd, the master developer of Cyberjaya, and launch its first housing project in the digital city worth some RM1 billion by year-end.

It is learnt that UEM Land- a unit of UEM World Bhd, Malaysia's third biggest construction concern - will buy the land for less than RM150 million to construct over 3,000 units of superlink, semi-detached houses and condominiums.

A company source told Business Times that UEM Land plans to sell the houses from RM500,000 each, and condominiums starting from RM200,000 per unit.

"Both firms are finalising the land deal. It is Setia Haruman's objective to equip Cyberjaya with 6,200 homes by 2010," the source said.

Cyberjaya, Malaysia's IT hub, has 2,700 houses comprising landed properties and apartments.

The homes were built by Setia Haruman, Country Heights Holdings Bhd, MK Land Holdings Bhd and Emkay Group of Companies.

The source said by 2010, UEM Land will add 1,000 homes in Cyberjaya and another 1,000 units will come from Cyberview Sdn Bhd, one of four key stakeholders of Cyberjaya besides Setia Haruman, Multimedia Development Corp and Sepang Municipal Council.

Cyberview will launch myHome@Cyberjaya, its first housing project, by August.

The other players in the intelligent city now are Emkay Group and Country Heights, building over 500 apartments collectively.

Emkay Group and UEM Land, which hold 75 per cent and 25 per cent of Setia Haruman respectively, are buying land in the company to jump-start land purchase by other developers, said the source.

Emkay Group had previously bought land from Setia Haruman to develop an IT park, dubbed MKN Embassy TechZone, corporate buildings and affordable housing.

By New Straits Times (by Sharen Kaur)

KUALA LUMPUR: Cyberjaya, the national ICT hub, will receive RM1bil in investments over the next 12 months as local and foreign companies relocate their operations there.

Setia Harum Sdn Bhd chief operating officer C.K. Lao said the company, together with a few sub-developers, were negotiating with several parties on the possibility of setting up their operations in Cyberjaya.

From left: Setia Haruman director Peter Teh, chief operating officer C.K. Lao and general manager Balasundram R. at the briefing

“We are in advanced discussions with a few companies that have shown interest to relocate,'' he said after a media briefing yesterday.

Setia Haruman, the master developer of Cyberjaya, is responsible for the planning, design and development of the township and also the sale of land parcels to investors and sub-developers.

While those keen to relocate were mainly American and European companies, Cyberjaya is also finalising some local deals.

Lao said the two US-based companies were a department store and a company involved in data centre services.

“There is also a bank from Europe and a South Korean company,” he said, adding that Cyberjaya was now moving in “high gear” and had more than 10 ongoing projects.

“Major ongoing projects include the MKN Embassy Techzone, Satyam Global Delivery Centre, Bank Negara Data Centre, CSF 11 Data Centre, IMPACT Building, Prime 8, JPJ Data Centre, TM R&D Centre and the Showroom@Cyberjaya.”

These projects alone would increase the population from the present 35,000 to 60,000 by 2010.

Launched in 1997, the 7,000-acre Cyberjaya is home to multinational companies like Ericcson, Dell and IBM.

Lao expects an influx of data centres to Cyberjaya as there was high demand from the government and private sectors.

He said the company was also mulling on the idea of expanding and opening new areas in Cyberjaya to cater to high-end data centres.

By The Star (by Eileen Hee)

 

KUALA LUMPUR: Cyberview Sdn Bhd will launch affordable homes by August in Cyberjaya in an initiative to make the country’s first cybercity a more affordable place to live in.

Cyberview, together with stakeholders such as Setia Haruman Sdn Bhd, the master developer of the city, as well as the Multimedia Development Corp, will take delegates from the ongoing World Congress on Information Technology 2008 and members of the press on a technical tour of Cyberjaya today.

Cyberview managing director Redza Rafiq said the tour was an opportunity for the stakeholders to show what Cyberjaya had to offer as a place to work and as a community.

Cyberview is the landowner and the entity spearheading the entire Cyberjaya development.

“Housing in the city is not cheap with apartments priced from RM300,000 but by August, we’ll be launching apartments priced from RM88,000 and two-storey townhouses priced from RM168,000,” he told StarBiz.

Redza said Cyberjaya was now undergoing a second surge in development after a slowdown from 2002 to 2004.

“So far, Cyberjaya has bucked the trend in growth. During the Asian financial crisis, Cyberjaya boomed but when the economy was coming out of the crisis in the early 2000s, Cyberjaya stagnated,” he said.

Redza said the city now had seven projects with a total gross development value of RM400mil. “Yes, we’re worried about the slower economic growth but we still have to deliver initiatives that bring value.''

Redza likened the city to a larger version of a Google or Microsoft campus. “For cybercities, growth is organic in nature. It’ll take time to grow but what the delegates will see is that the city is not just a concept; the infrastructure is ready. We’re ready,” he said.

“It took us a long time to build up 1 million sq ft of office space, now we’ve 3 million sq ft and the target is 5 million sq ft by 2010. I think by the way things are going, we’ll be achieving it earlier.”

By The Star (by Fintan Ng)

 

The nucleus of MSC Malaysia, Cyberjaya, is expected to receive more than RM1 billion in investments in the next 12 months from the US, Europe, South Korea and two local companies.

Setia Haruman Sdn Bhd chief executive officer C.K. Lao said a few sub-contractors are negotiating with several companies on the possibility of setting up facilities in Cyberjaya.

"Two companies, involved in data centre services and departmental store, are from the US while another two are banking companies from Europe and South Korea.

"We are in advanced stage of discussions with a few companies who have shown keen interest to relocate to Cyberjaya,” he told a media briefing at the World Congress of Information Technology 2008 which ended yesterday.

Lao said the company has more than 10 on-going projects.

"Among them are development of data centre building for Bank Negara Malaysia, Road Transport Department, Telekom Malaysia, IMPACT Building and CSF Advisers Sdn Bhd,” he said.

Cyberjaya township covers 2,800 hectares and it has become a choice destination for global information and communications technology (ICT) operations.

It is ranked as one of the top three global destinations for business support services and outsourcing.

The township is home to multinational companies such as Shell, EDS, Ericsson, BMW, HSBC, DHL, Motorola, Dell, Satyam, Wipro and Nokia.

Setia Haruman is the master developer of Cyberjaya.

Meanwhile, Lao said the company is considering opening up new areas for high-end data centre amid higher demand.

"We hope we can continue to build an attractive home for data centre and any ICT-related activities,” he said.

By Bernama

The Emkay Group of companies, controlled by developer Tan Sri Mustapha Kamal Abu Bakar, is buying more land in Cyberjaya to continue its investments and focus there.

Emkay, which has spent more than RM400 million since 2004 from its coffers for developments at the digital city, is planning to construct buildings under a build-and-lease concept and plan custom-made properties for local and foreign firms.

HUGE POTENTIAL: Azman (centre), Mustapha (left) and Jitendra at the signing ceremony

"We may resort to borrowings to finance bigger projects here if we have to. We are planning new housing and commercial projects and will rope in Embassy Group, our Indian partner, in planning them," Mustapha Kamal told Business Times at the official opening of Block A of MKN Embassy TechZone by Ambank Group chairman Tan Sri Azman Hashim in Cyberjaya recently. Also present was Jitendra Virwani, director of Embassy Group of India.

TechZone is a 12ha information technology park comprising four hi-tech buildings worth RM350 million, jointly developed by Emkay and Embassy. Another eight blocks would be added by 2011.

Emkay has 36.4ha in Cyberjaya that it acquired for RM215 million, which would translate to a gross development value exceeding RM5 billion offering 15.3 million sq ft of office space.

Azman, meanwhile, told Business Times that AmBank is happy to support Bumiputera entrepreneurs who are planning large-scale projects that are viable in Cyberjaya.

In developing Cyberjaya, which started in 1997, Azman said it (Cyberjaya) would require more companies like the Emkay Group to push developments forward.

"Emkay is here to fast-track developments. Their partnership with Embassy proves there is still huge potential at Cyberjaya and AmBank would be happy to support them financially not just for future projects, but existing ones as well," Azman said.

Emkay is also building Neo Cyber, Cyberjaya's first integrated development, comprising an 18-storey serviced apartment block, a 10-storey office tower, offices and 15-storey apartment blocks.

By New Straits Times (by Sharen Kaur)

 

An exclusive bungalow at IOI Resort Putrajaya

The Klang Valley's southern corridor is set for more activities as developers and property investors continue to see good upside potential in the bustling corridor.

Until a few years ago, it was one of the few corridors in the Klang Valley that had large tracts of estate land that were suitable for property development. But in the past decade many new townships and projects have emerged.

However, with building activities increasing in the past decade, sizeable pieces of land are not easy to come by these days. As land sizes shrank, the cost of land has escalated.

Land prices in Cyberjaya and Putrajaya have risen to between RM25 and RM100 per sq ft (psf), depending on location, from less than RM10 psf about eight years ago.

Developers who have the foresight to lock in vast tracts of land here have secured “goldmines” and went on to reap a fortune from their developments.

Key property developers in the robust southern corridor include IOI Properties Bhd, SP Setia Bhd, Island & Peninsular Bhd, Bukit Hitam Development Sdn Bhd, Putrajaya Holdings Sdn Bhd and Setia Haruman Sdn Bhd.

According to IOI Properties director Datuk David Tan, the large land tracts have enabled the development of well planned integrated townships with good infrastructure, commercial hubs, modern amenities, employment opportunities and secure neighbourhoods in the corridor.

Datuk David Tan

“The southern corridor has proven to be a preferred choice with its high accessibility, modern infrastructure and employment opportunities,” Tan said.

The pull of the corridor has been further enhanced with the good road network including the Damansara-Puchong Expressway (LDP), North South Expressway Central Link (Elite), South Klang Valley Expressway (SKVE), KL-Putrajaya dedicated highway and the North-South Expressway.

Stretching from Puchong and Seri Kembangan to Sepang, Putrajaya and Cyberjaya, remarkable growth in the form of new townships and infrastructure network, have spawned many new opportunities.

New centre of gravity
“The pull of Putrajaya, Cyberjaya, KL International Airport and Sepang International Circuit remains strong, and this has contributed to Klang Valley's new centre of gravity moving southwards towards Sepang.

“The northern part of Sepang that covers Cyberjaya and Putrajaya will experience a faster growth rate, especially with the completion of the SKVE project and the dedicated Kuala Lumpur-Putrajaya Highway that was completed last December.

“Within the next three to five years, the growth in this corridor will continue to outpace other parts of the Klang Valley,” Tan added.

SP Setia Bhd group managing director Tan Sri Liew Kee Sin said that based on the draft local plan, Puchong could look forward to more exciting times as an estimated RM3.1bil was expected to be pumped in for infrastructure improvement by the local council over the next 12 years.

Tan Sri Liew Kee Sin

“Among the facilities and amenities that residents can expect in the near future are the proposed Puchong light rail transit station and a RM10mil international camping site at the gazetted Ayer Hitam Forest Reserve,” Liew said.

He said Puchong was at the forefront of the transformation of the southern corridor with a rapidly expanding population, which is estimated at 250,000 today.

Highways turns Puchong into a fast- growing centre
The completion of highway networks has largely elevated Puchong into one of the fast-growing centres in the corridor.

Tan said that under the Selangor Structure Plan, parts of the southern districts of Sepang and Kuala Langat had been designated as Klang Valley 2.

Klang Valley 2 encompasses the federal administrative capital of Putrajaya and the information and communications technology-centred Cyberjaya on one end, and the KLIA and Sepang F1 racing circuit on the other. It also includes the area along the coast north of Sepang GoldCoast as far as Morib.

“It is a worthwhile initiative to ensure more well-planned developments, both residential and commercial, whereby private developers will complement the efforts of the public sector to further enhance the vibrancy of the corridor.

“To ensure more quality lifestyle for the people, Klang Valley 2 should avoid the problems of the existing Klang Valley and provide the right environment for living, recreation, education and work,” Tan said.

By The Star (by Angie Ng and Shannen Wong)

The Emkay group of companies, controlled by property tycoon Tan Sri Mustapha Kamal Abu Bakar, is set to earn stable and sustainable income for years to come, arising from strong sales and rental payments from its property projects.


From 2005 onwards, it will be the investment stage during which we will build specific buildings and then lease them out to earn recurring income for the group. Tan Sri Mustapha Kamal Abu Bakar - Emkay founder

Mustapha Kamal is also the chairman and dominant stakeholder of associate company MK Land Holdings Bhd, a property developer listed on the main board of Bursa Malaysia.

He holds 48.7 per cent of MK Land via privately-held MKN Holdings Sdn Bhd, which in turn is one of 15 companies owned by Mustapha grouped under the Emkay stable.

Emkay will be celebrating its 25th anniversary tomorrow. The event will be attended by former prime minister Tun Dr Mahathir Mohamad.

Mustapha Kamal said Emkay already had a three-phase plan when it started out in 1983.

Under the first phase, 1983-1993, it wanted to go all out to develop new property projects.

"Between 1994 and 2005, we went through the expansion phase.

"From 2005 onwards, it will be the investment stage during which we will build specific buildings and then lease them out to earn recurring income for the group," he said.





In Cyberjaya, for example, some international firms, especially information technology (IT), find it cumbersome to buy land and build their operational offices, he added.

Emkay and associate company Setia Haruman Sdn Bhd, the master developer of Cyberjaya, are embarking on a new initiative for Cyberjaya - constructing the buildings and then renting or selling them to investors.

Emkay chief operating officer Peter Teh Heng Poh said the RM100 million Bangunan Mustapha Kamal in Cyberjaya is a case in point.



The building is expected to be issued with its certificate of fitness this month, with tenants to come in soon after.

"This building, along with Emkay's other projects, will generate recurring income for the Emkay group of companies for the long term," said Teh.

Other ongoing projects include the Menara Mustapha Kamal in Damansara Perdana, Petaling Jaya, the RM350 million MKN Embassy Techzone in Cyberjaya and the RM300 million NeoCyberjaya mixed development, also in Cyberjaya.

Emkay started out with a landbank of 6,072ha, with gross development value of RM29 billion, enough to keep it busy for the next 10-15 years.

It has built 45,000 homes (some projects are carried out together with MK Land) on part of the 6,072ha. The homes, commercial and office blocks have a combined gross development value of RM13 billion.

Emkay is expected to open its RM77 million Belum Rainforest Resort on Pulau Banding in Grik, Perak, as early as this month.

By New Straits Times (by Zaidi Isham Ismail)

KUALA LUMPUR: Glomac Bhd subsidiary Glomac Jaya Sdn Bhd is buying a 3.29-hectare parcel of freehold land, which forms part of Cyberjaya Flagship Zone, in Sepang for RM21.24 million.

In a statement yesterday, Glomac said Glomac Jaya had signed a sale and purchase agreement on Jan 18 with the land owner, Cyberview Sdn Bhd, and the developer, Setia Haruman Sdn Bhd, for the proposed acquisition.

Glomac said it would finance the acquisition via internal funds and bank borrowings. It said the lot had immediate development potential due to its strategic location in the Cyberjaya Enterprise Zone.

“Fronting the main road, the lot shares its neighbourhood with other prestigious buildings such as HSBC, IBM, DHL, BMW, Ericsson, NTT, Fujitsu and MDeC HQ.

“It is situated within a stone’s throw away from the Multimedia University and is adjacent to Putrajaya. The surrounding area is a popular address for international IT companies and local MSC status companies,” it said.

By The EDGE MALAYSIA

PETALING JAYA: Quill Capita Management Sdn Bhd is acquiring three more prime assets in the Klang Valley, for a total purchase consideration of RM94.5 million to be injected into its real estate investment trust (REIT), Quill Capita Trust (QCT). The acquisition is expected to be complete by April, which would increase its property portfolio size by 17%, from RM549 million to RM643 million.


Chan: QCT would continue to be active in its acquisition strategy in 2008

The properties involved in the acquisition are Quill Building 5-IBM, a 5-storey property located in Cyberjaya; Quill Building 8-XPJ, a 3-storey property in Shah Alam; and Quill Building 10-HSBC, a 4-storey property in Section 13, Petaling Jaya. The three buildings have a total net lettable area of more than 203,000 sq ft, which would provide an initial net property yield of 6.3% per annum to QCT.

The acquisition of the three new properties was on the back of sustainable and healthy economic growth in the Klang Valley, with the KL office market experiencing an upturn due to strong demand from business expansion coupled with the tight supply of quality office space expected
in the next 12 months.

QCT believes there is increased foreign interest in the KL property market because of favourable foreign property investment policies and expected foreign exchange gains.

Other factors include attractive the pricing and yields offered here compared to regional peers as well as a developing REIT market.

This latest acquisition also marks QCT’s progress as one of the fastest growing commercial REITs in Malaysia, its chief executive officer Chan Say Yeong said in a statement yesterday.

“With the acquisitions of Wisma Technip and the commercial units of Plaza Mont’Kiara in 2007, and the recent revaluation increase in its portfolio by RM57.1 million, QCT has doubled its total assets from RM290.6 million to RM584.9 million,” he said. The REIT has another four properties located in Cyberjaya.

He added that QCT would continue to be active in its acquisition strategy in 2008, as the REIT targets to achieve a total asset size of approximately RM750 million by year-end. “We will be acquiring properties in prime locations that will not only attract blue-chip tenants, but have the potential for long-term value appreciation,” he said.

QCT announced a distributable income of RM19.26 million for the financial year ended Dec 31, 2007, an increase of 34.5% from its forecast of RM14.32 million as stated in its Initial Public Offering prospectus dated Dec 10, 2006.

By theSun (by Yap Yew Jin)

This will increase the property trust's portfolio to RM 643mil

KUALA LUMPUR: Quill Capita Management Sdn Bhd (QCM), the manager of Quill Capita Trust (QCT), has proposed to acquire three assets for RM94.5mil.

According to QCM chief executive officer Chan Say Yeong, QCT targets to increase its property portfolio to RM750mil by end-2008 from RM549mil as at Dec 31, 2007.

“QCT's asset size will increase to RM643mil upon completion of the three proposed acquisitions in April and we are aiming for two more assets before year-end,” he said.

Chan said this after announcing QCT's results for the year ended Dec 31, 2007 (FY07).

He added that the company was in negotiations with a few third parties but declined further comment.

The properties to be injected will be acquired from the Quill group, one of the two main sponsors of the property trust along with CapitaLand group.

“The properties are the five-storey IBM regional processing and call centre in Cyberjaya, three-storey DHL logistics centre and office at Shah Alam, and four-storey HSBC Bank processing centre in Section 13, Petaling Jaya,” Chan said.

He added that the initial net property yield would be 6.3% per annum for these fully occupied assets.

These acquisitions were expected to be financed by internal funds and borrowings, Chan said.

Meanwhile, QCT surpassed its initial public offering (IPO) forecast distributable income of RM14.32mil by 34.5% to RM19.26mil for FY07.

“The main contribution to the increase in distributable income is the rental income of Wisma Technip and the commercial units of Plaza Mont'Kiara, which were acquired by QCT during the financial year, and lower interest expense,” Chan said.

According to Chan, the distributable income of RM19.26mil translates into a distribution per unit (DPU) of 6.46 sen, which is 7.7% above the IPO forecast of 6 sen.

He projects a DPU of 6.93 sen for end-2008.

“An interim DPU of 3.99 sen was paid in September 2007 while the remaining 2.47 sen is expected to be paid next month,” he said.

He added that QCT's policy was to pay out all its distributable income but it intended to retain 10% in 2009.

On the property outlook in Malaysia, Chan said the KL office market was expected to improve due to strong demand from business expansion, coupled with tight supply of quality office spaces.
 

By The Star