Archive for the ‘Real Estate News’ Category

The Asia Pacific Trade and Expo City (APTEC) project in Iskandar led by Malaysian Pacific Corp Bhd (MPCorp) is expected to see an investment of RM3 billion over a period of five years.

The project, aimed at promoting Malaysia as Asia’s “economic corridor” will require participation from various countries in the 10- member Asean region, India, South Korea and many others.

“We are in talks with various countries for partnerships and they liked the idea. Recently, I met the Indian Minister of Commerce and he was interested in the project,” MPCorp chairman and CEO Datuk Bill Ch’ng told The Malaysian Reserve last Friday on the sidelines of the 5th World Chinese Economic Forum in Kuala Lumpur.

The project, when completed, will provide about three million sq ft of space where consumer product manufacturers from various countries can showcase their products.

The aim is to turn the Malaysian states bordering Johor into a consumer products trade hub for the region, he pointed out.

“The funding for the project is to be done from internally generated funds and borrowings.

Some of it will also come from other stakeholders,” Ch’ng said.

MPCorp inked a memorandum of understanding with China’s state-owned corporation Black Sea Horizon Investment Holdings Ltd last Friday.

Black Sea is involved in consumer trade, property development, hospitality, oil refineries and oil trade. MPCorp, as a property development company, will be the anchor partners for the project, said Ch’ng.

The two companies will coordinate and secure the relevant approvals from the respective regulatory bodies in China and Malaysia.

“APTEC will serve as a onestop centre for the new ‘Silk Route’ of trade, sourcing, procurement and distribution showcase window for China manufactured consumer products as well as products made in Asean, Japan, South Korea, Australia, New Zealand, India and the Middle East,” said Ch’ng.

About one million sq ft of land will be used by the Chinese company and the rest of the two million sq ft will be left for other countries, he said.

MPCorp has a landbank of 638 acres in Iskandar Malaysia and is building its prospects on the “already paid for” land that it owns in Malaysia’s fast growing investment destination in Johor.

Apart from the APTEC, it is also involved in the RM2 billion LakeHill Resort City.

“Last few years have not been good for the company. When you put in all the investment in such a big project you do not have cashflow. But this is going to end soon,” said Ch’ng.

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China-based Huawei is building a new data center in Malaysia with the federal government’s investment fund, Khazanah Nasional Berhad.

The facility will provide 90,000 sq ft of office and warehouse space for data hosting and logistics in Iskandar – a special economic zone developed by Khasanah as a major port and financial services district.

Huawei will use the data center to service its regional customers and to support government investment incentives.

Khazanah said it will help facilitate the build for the proposed Huawei Regional Data Hosting and Logistics Center.

Huawei South Pacific Region president David Wei Cheng Min said Malaysia is one of Huawei’s most important markets in the Asia pacific.

“Our new investment into Nusajaya, Iskandar, Malaysia is another major milestone in making Malaysia as our regional business gateway to reach out to the Asia Pacific region,” he said.

“Malaysia’s openness to foreign investment, its strong incentives of encouraging foreign investment, richly skilled workforce and geographic advantages underline our confidence in further investment in Malaysia.”

The development, which will provide jobs for 600 people in admin, management and technical positions, is expected to help support the ICT transformation of the region, Khazanah said.

It said the Iskandar region is increasingly attracting investment from domestic and foreign investors across a range of sectors.

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It is worrisome that when one analyst said Putrajaya has the potential oversupply due to many projects come in to that area. Gan Eng Peng, head of Equities at Hwang Investment Management told that Even without some of the largest mega projects like the PNB building and financial hubs, we are facing that situation (in the future).

Instead of fear from market crash just like in Dubai, Malaysia especially in Kuala Lumpur still have the demand over supply. He added,”The key difference between the crash of Dubai and potentially in KL is that in Dubai, there was massive overbuilding combined with a collapse in end-demand due to the credit crisis.”

One of the way to cut off new supply is to impose a moratorium on the construction of new office buildings as undertaken a few years ago. Also, they should also reconsider some of their iconic projects as they are compounding the problem, Gan said.

Another difference, according to Real Estate and Housing Developers’ Association of Malaysia (Rehda) president Datuk Seri Michael Yam, was that around 80 per cent of Dubai’s 2.1-million population were expatriates. In contrast, Greater KL’s population was now 6.5 million and projected to grow to 10 million by 2020, he said.

They both said that this is to be expected as office space growth was outstripping demand while prices for real estate may soften with the planned supply coming through. Prices, especially of the old buildings, will also suffer capital stagnation or even losses as tenants move towards newer buildings, they said. But Rehda president believed the market would automatically correct itself before reaching a crisis similar to Dubai’s.

News details

Wowowo…
1st time ever happened..8ha S.E.A aquarium at Resort World Sentosa, Singapore had been booked as venue for wedding ceremony.

Dato Tan Eng Boon, a real estate developer from Malaysia, had booked the viewing gallery of the aquarium last Saturday evening for his son Edwin Tan’s wedding, reported Chinese evening daily Lianhe Wanbao.

2 million which includes of 1.2 million price of Lamborghini as a wedding gift for the couple from Dato Tan Eng Boon. Not more than 262 guests were invited to celebrate the wedding.

Sounds cool is it?

SOurce