UDA eyes Pekeliling redevelopment

PROPOSAL UNDERWAY: Company plans to transform area into a Malaysian Battersea
GOVERNMENT-owned UDA Holdings Bhd wants to take over the Pekeliling flats site in Kuala Lumpur, and turn in into "Malaysia's Battersea Power Station project".

Newly-appointed chairman Datuk Johari Abd Ghani said UDA is in the process of submitting its proposal to redevelop the site.

Efforts to rejuvenate the area has stalled for 12 years.

"The 15ha development can be turned into our very own Battersea development project comprising mixed development such as condominiums and commercial lots," Johari said.
The Battersea project is a RM40 billion power station redevelopment in London undertaken by a consortium comprising SP Setia Bhd, Sime Darby Bhd and the Employees Provident Fund.

UDA is ready to develop the Pekeliling area by building affordable homes priced between RM300,000 and RM350,000 a unit strategically located in the city, Johari told reporters after the company's Hari Raya open house yesterday.

The redevelopment of Tuanku Abdul Rahman flats, better know as the Pekeliling flats, was mooted as early as 1995.

The government decided to redevelop the flats as part of a project called Taman Sari to provide better housing and living conditions in the area.

At the end of 2005, government-appointed developer Asie Sdn Bhd began demolishing Block A and B after most of the residents from the 11 blocks moved out.

Demolition work on the rest of the housing blocks, however, stalled due to a legal tussle.

Built in 1967, the 17-storey flats were one of the city's earliest public housing projects.

In 2011, property developer Mah Sing Group Bhd secured a deal to develop part of the Pekeliling flats area into serviced residences and retail units with an estimated gross development value of RM900 million.

But the project did not kick off as Mah Sing faced legal and monetary issues with project owner Asie.

Johari said the Pekeliling project has dragged on for too long and it is time that redevelopment takes off.

"If the EPF, Sime Darby and SP Setia can do it in Battersea, a similar project can also be done in Pekeliling by UDA and joint-venture partners," Johari said, declining to reveal investment details.

Johari said the Pekeliling redevelopment can be partly funded by UDA's other projects such as the ongoing Pudu development.
He said the project will give high priority to the Bumiputera agenda.

For example, the commercial lots will be awarded to genuine Bumiputera enterpreneurs who really want to do business with no political connections and they will not be allowed to sub-let their lots to non-Bumiputeras.

Johari, who was appointed UDA chairman on July 8, said he wants to go all out to bring UDA back to its former glory with emphasis on affordable houses, especially for the middle income group.

"UDA wants to focus on building homes within the RM200,000 and RM300,000 range," said Johari.

UDA, which is wholly-owned by the Finance Ministry, owns malls such as the Bukit Bintang Plaza, Pertama Complex and the AnCasa Hotel and Spa chain.

Business Times, 29 August 2013

iProperty: Affordability remains major concern for Asian property buyers

SINGAPORE: An online cross-market property survey by iProperty Group, owner and operator of Asia's No.1 network of property websites, revealed that consumers in Malaysia, Indonesia, Hong Kong, and Singapore continue to view affordability as the major concern, despite the various cooling off measures introduced by the governments in the region.

Across the four countries surveyed, the respondents had somewhat more in common than they had differences. 

The key similarities included affordability and rising house prices which continued to remain the biggest concerns amongst respondents in all four countries.

The iProperty Group leveraged on their market leading websites in Malaysia (iproperty.com.my), Indonesia (Rumah123.com and rumahdanproperti.com), Hong Kong (GoHome.com.hk), and Singapore (iproperty.com.sg) as the bellwether to gauge the opinions of thousands of consumers in the region.

The survey attracted close to 30,000 respondents, majority aged between 26 and 50 years old.
The respondents comprised largely of executive/managerial and professional occupations and based on their annual household income; most respondents belong to the low- and middle-income group just like in the previous survey.

iProperty Group chief executive officer Shaun Di Gregorio said: "The survey findings revealed a high percentage of first-time home buyers especially in Malaysia, Indonesia and Singapore.
"Their factors of consideration when deciding to purchase property has also changed, with location trumping price, which was not the case six months ago.

"In Malaysia, Indonesia and Hong Kong the respondents' main motivation to purchase property is to own their own home, while the Singaporeans surveyed are motivated by long-term investment," he said when unveiling the survey results here today.

However, in Hong Kong, while price and location were the key factors of consideration, it was interesting to note that the living environment was also a major consideration.

When it came to what type of property these survey respondents preferred, the findings showed that landed property was the most popular property type in Malaysia and Indonesia.

In Hong Kong and Singapore, the survey revealed that private condominiums were the most popular type of property.

"Landed property has long been properties favoured by various investors and property buyers over the course of time and the market for landed property continues to be the favourite.

"The main reason as development and resident population rapidly grows, land tends to grow scarce, hence the more expensive prime land becomes," said Di Gregorio.

This phenomenon can be seen in Singapore and Hong Kong, where the cost of owning landed property is overwhelmingly high, therefore making private condominiums the favourite option.
Due to this, it was not surprising that the survey findings revealed nearly 40% of Singaporeans surveyed were keen in investing in properties in Malaysia and Australia.

The Singaporeans also showed reduced interest (from 42% to 39%) in Malaysia as an investment option, while interest in Australia has picked up (from 15% to 19%).

In Hong Kong, a mere 10% considered buying property overseas. Of those interested in the overseas property market, Southeast Asia was the preferred choice.

Respondents who chose Southeast Asian region (including Singapore, Malaysia, Thailand and Indonesia) climbed to 39%, an increase from the 35% in the last survey.

 Level of support for opportunities in the United Kingdom (25%) and Australia (24%) remained high while interest in China still remained strong, with Shenzhen being the most popular among the Chinese cities named.

- Bernama, 20 August 2013 

CapitaMalls gets offer to purchase Tropicana City Mall, office tower

KUALA LUMPUR: Tropicana Corporation Bhd is offering for sale its Tropicana City Mall and office tower in Petaling Jaya to CapitaMalls Malaysia REIT Management Sdn Bhd.

CapitaMalls Malaysia REIT Management said on Friday it had received a letter of intent from Tropicana City’s unit Tropicana City Sdn Bhd to look into purchasing the properties.

Tropicana City Mall is a four-storey mall with basements which can accommodate 1,759 cars while Tropicana City office tower is a 12-storey building.

“With the signing of the letter of intent, an exclusive period for the due diligence will be granted to CMMT and upon being satisfied with the results, CMMT shall proceed to enter into negotiations on the terms for the proposed acquisition,” it said.

CapitaMalls Malaysia REIT Management is the manager of CapitaMalls Malaysia Trust.

(The Star, 23 August 2013)