Tabung Haji said to be buyer of Naza building

Tabung Haji is believed to be the buyer of a multi-storey tower in the heart of Kuala Lumpur that will be built by Naza TTDI Sdn Bhd.
A source said that Tabung Haji had purchased the 30-storey building, located at the RM4.1 billion integrated upmarket commercial and residential property project known as Platinum Park.It would be the second property in the project that Naza TTDI has sold, after last year's RM640.7 million deal with plantation group Felda for a 50-storey tower."I don't know whether Tabung Haji will move its headquarters to the new building or whether it bought for investment purposes," the source told Business Times. Tabung Haji has declined to comment.In an interview with Business Times recently, Naza TTDI group managing director SM Faliq SM Nasamuddin said that a 30-storey building had been sold to a government-linked company. He did not reveal the buyer."This tower together with two other towers is scheduled for completion within five years," the source said.Naza Group of Companies joint executive chairman SM Nasarudin SM Nasimuddin, when met at a function in Kuala Lumpur yesterday, declined to reveal the buyer of the third tower at Platinum Park."It has already been sold, but I am not about to reveal who the buyer is," he said after witnessing the signing of an agreement between Naza Group and Well Spring Inc in Kuala Lumpur.Naza has been given a master licence by the US-based company to operate "Tutti Frutti" frozen yogurt outlets in the country.Work has started on the Felda building as well as the 50-storey building which will house Naza Group's headquarters.Platinum Park, developed by Naza TTDI, is in the vicinity of the Petronas Twin Towers and the Suria KLCC shopping centre.It is set to be the single largest luxury project undertaken by a Bumiputera company in the heart of Kuala Lumpur.There will be seven buildings at Platinum Park.Naza TTDI is the property arm of the Naza group. Founded by the late Tan Sri Nasimuddin SM Amin, the group was better known as a motoring company before it bought over TTDI from Danaharta in 2004.

Properties need Malaysian flavour

Local property players should place more emphasis on giving their products a Malaysian identity to ensure quality goods.
Prime Minister Datuk Seri Najib Tun Razak said imbuing local properties with the Malaysian flavour would help reinforce the country’s reputation for quality.
“The pursuit and promotion of quality Malaysian properties is another piece of the jigsaw that supports enhancing our cities as economic centres,” he said in his speech, which was read by Minister in Prime Minister’s Department Tan Sri Nor Mohamed Yakcop, at the launch of Malaysia Property Incorporated here yesterday.
He said the pursuit of quality required rigorous attention to detail and the needs of consumers, even to the level of ensuring that the design of the lavatories would make them easier to be maintained and kept clean.
Najib said Malaysian properties must also be truly functional and take into consideration local factors, such as the weather and culture.
“A focus on function means that a property is not just a physical structure of brick and mortar but a structure which truly supports one’s activities and lifestyle and, at the same time, is well integrated into the surrounding community.
“The combination of strong identity, functionality and sustainability will no doubt augur well to reinforce Malaysia’s property proposition,” he said.
Najib said Malaysia provided value for money to foreign investors, offering high-end properties supported by world-class infrastructure and connectivity at relatively affordable prices.
Later, Nor Mohamed told reporters that the Economic Planning Unit’s study to find solutions to the issue of toll increases every three years was on track and that the results would be announced soon.
“It will be in due course. It will not be too long from now,” he said.
The Government had deferred the toll rate increase for five highways, which was scheduled to take place on March 1, resulting in it having to fork out RM287mil in compensation to the toll concessionaires.

Malaysia to be made property hub

RM50mil grant each from Govt and private sector for promos

THE Government, through one of its public/private sector initiatives, will be rolling out plans to make Malaysia an international property destination.

Datuk Seri Effendi Norwawi, Minister in the Prime Minister's Department, told StarBiz: “The idea is to make Malaysia a destination for foreigners to buy properties. Property prices here are so much cheaper than in places such as London and Singapore. We should show that we have real value for money.''

A matching grant of RM50mil each between the Government and private sector is likely to be introduced for international promotions.

“We should go out to the world with our best projects,'' he said. “In this respect, we are careful with the kind of properties and developers we promote.

A bungalow in Mont Kiara. Property prices here are so much cheaper than in places such as London and Singapore

“We do not want cases where investors buy properties they are not satisfied with, as these will give us a bad reputation. Self-regulation is important to maintain our image,'' he stressed.

Under the plan which is expected to be implemented soon, Malaysia's premier properties will be showcased at exhibitions overseas, with targeted markets in the Middle East, South Korea and Japan.

“We've been having dialogues with Fiabci and the Real Estate Housing Developers Association (Rehda) on the ways to reform the property sector,'' he said.

The Government has taken heed to the recommendations from the private sector and liberalised many areas in the property sector, the latest being the waiver on real property gains tax. “We are now ready to take on the challenge worldwide,'' Effendi said.

The Government's international marketing plan will be coordinated with Fiabci and Rehda.

Among others, real estate agents will be the ambassadors to tell the Malaysian property story. In this respect, their skills and professionalism will be further enhanced to ensure that the message gets across effectively and foreign investors are impressed.

“Our integrated efforts will include pushing the Malaysia My Second Home programme as well as health and ecotourism. There will be no more excuses this time,'' he said.

“We talk to Rehda and have a wonderful working relationship with them. They have brought many of the issues to the National Implementation Taskforce and we have freed all the restrictions.

“We are optimistic that this plan will work because many of our properties are so undervalued,'' he said.

However, he is aware that the speculative element would be something to watch out for. “We ought to be watching this carefully and be prepared to deal with it.

“But our main priority now is to get the promotions going. There is still quite a large property overhang and we have to release it,'' he said.

The first batch of properties to be showcased will probably be those located in the Klang Valley, followed by those in the Iskandar Development Region and Penang.

Property transactions expected to increase

The recent relaxation of the FIC rules is expected to spur demand for residential and commercial property financing.

PETALING JAYA: Bank earnings and loans growth are likely to improve towards the end of the year, bolstered by the recent deregulation of the Foreign Investment Committee (FIC) guidelines on properties as well as easing conditions for new listings and fund-raising activities.

According to a foreign brokerage, property transactions, both residential and commercial, are expected to increase following the relaxation of the FIC rules, which should spur demand for property financing.

Higher property financing would lead to a turnaround in loans growth by year’s end or early next year, it said, noting that property financing comprised 36.4% of total loans in the banking system.

“The policy changes will create more revenue streams for Malaysia’s financial sector and reduce dependency on pure interest income,” the foreign research house said, adding that loans growth in May was underpinned by the relatively stable household loans segment, which grew 8.4% year-on-year.

In addition, the liberalisation would also encourage more mergers and acquisitions (M&As), as well as more capital and equity market activities, which would benefit investment banks, it said. With greater foreign ownership allowed in stockbrokers, product innovation – such as the roll-out of more varied derivative products – is likely to improve.

The foreign research house added that Malaysia’s capital market was expected to gain better access to capital and investments with the removal of the 30% bumiputra equity requirement, making it more attractive for foreign listings while supporting existing listed companies seeking to raise funds.

A local bank-backed brokerage said residential mortgages showed “no signs of weakening” as they sustained 10% growth from December 2008 to May 2009 despite the gloomy economic landscape.

This was due to progressive release of housing loans approved in the past one to two years, high savings rate of Malaysians, sustainable property transactions thanks to limited speculation, low interest rates and attractive schemes by developers, it said.

Moreover, there could be more corporate deals in the pipeline, including new listings and M&A transactions on the back of improved average daily trading value on Bursa Malaysia, it said.

This would augur well for investment banking income, including brokerage and corporate advisory fees, the research house added.

HwangDBS Vickers Research, meanwhile, said the liberalisation was “very bold measures” to improve the competitiveness of Malaysia’s properties internationally.

“The biggest winners will be developers with large exposure to the more ‘open’ districts like the Federal Territory and Penang, where the authorities would likely be supportive,” it said.