Here is a few article on the Sunway City most aggressive project in Bandar Sunway, Petaling Jaya, Selangor.
It is called SOUTH QUAY (read: key), it will be build on "extreme park" which is an old ex-Tin mine. The main selling point of this Huge area is the "Lake" which is practically a "mining pool" ha3x...
But Sunway City has always been rated as one of TOP-3 best Malaysian's developer and from civil engineering point of view, malaysia is one of the most advance in the world if you're watching their Highway network and their civil engineering achievement.
I am still very green in Property investment as this kind of investment require a huge capital for entry point as I am foreigner that in many cases would prefer purchasing property in cash ( like i have the cash hahaha :P_)
I will update few pictures later after the following Articles from a few newspaper
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South Quay , Bandar Sunway
Sunway City on the way up again, April 23, 2007, The Edge
Ten years after the Asian financial crisis saddled Tan Sri Jeffrey Cheah's property development and investment arm Sunway City Bhd with a mountain of debt, the group's prospects are looking sunnier.
Cheah owns a 43.6% stake in Sunway City, while Government of Singapore Investment Corp has 24.3% and the Selangor State Economic Development Corp 6.2%. Sunway City's better outlook has not escaped the market's attention, especially over the past month.
Its share price, which was trading at about RM1.70 last November, hit RM3.10 on Feb 26. A market correction in end-February sent it down to RM2.35, but since then, it has shot up again, jumping 81% to close at RM4.46 last Wednesday.
Even with this significant rise, analysts reckon that there is more upside potential. The fair value they have accorded Sunway City is over RM5.60. Which begs the question: What does the market know now that it did not know two months ago about Sunway City's prospects?
The catalyst has been recent government incentives to boost the property sector. The real property gains tax has been abolished since April 1, while rules that govern the buying of property by foreigners have been relaxed. Foreigners are now allowed to take up to three property loans.
These measures augur well for Sunway City, which has a landbank of 3.1 billion acres, 70% of which are located in the KlangValley. Its flagship project is Sunway South Quay, which is situated on a 178-acre site in Bandar Sunway and has a gross development value (GDV) of RM3.7 billion.
"Sunway City aims to make South Quay the next hotspot for the upmarket and expatriates to stay," says an analyst.
The first phase, comprising 77 bungalows, will be launched in this quarter. A block of condominiums worth RM200 million has been sold to a South Korean party and the company is negotiating the sale of another block worth RM300 million.
Sunway City has strong equity partners for the project, which reduces the risk of the company not being able to complete the project. The Employees Provident Fund and Kuwait Finance House each own a 20% stake in Sunway South Quay while Sunway City indirectly owns the rest.
"Management is also working closely with Kuwait Finance House to market this project in the Middle East as there has been keen interest from buyers in that region for properties in Malaysia," says KAF-Seagroatt & Campbell Securities in a recent research report.
"The resort living lifestyle offered by the project, coupled with good location and accessibility, should garner good foreign interest," the report adds.
Sunway City's other high-end project is KL South, which is located on a 23-acre plot in Kuala Lumpur. KL South is a mixed commercial and residential project with a GDV of RM1.5 billion.
It will feature a shopping mall, apartments and shop offices. The project is being undertaken with the landowner on a 50:50 joint venture.
Sunway City's ongoing projects, including Sunway Damansara, Sunway SPK and Kiara Hills, have a total GDV of RM2.23 billion.
"The company's strategy to focus on high-end properties with strong partners for its major launches fits in well with the government's measures to boost the property sector," says an analyst.
Based on the upcoming launches, RHB Research Institute expects the company to achieve a compound annual growth rate of 15.6% over the next three financial years. The company's financial year-end is June 30.
The research house expects Sunway City to achieve earnings per share (EPS) of 29 sen in FY2007, 35.3 sen in FY2008 and 41.6 sen in FY2009. Forecast EPS in FY2008 and FY2009 were made on the assumption that a private placement, which the company is now undertaking, has been completed.
Steps to degear
The placement of up to 42.59 million shares is one of the measures Sunway City is taking to pare its debts and raise funds for working capital. When the proposal was announced several months ago, Sunway City's share price was much lower. For illustrative purposes, the company then stated that if the issue price of the placement shares was RM2.76 each, the exercise would raise RM117.60 million.
However, Sunway City's share price has almost doubled now. Based on the closing price of RM4.46 last Wednesday, the exercise could potentially raise up to RM190 million. The issue price has yet to be finalised.
Will there be takers for the placement shares at this price? The answer is still a yes, according to the head of a research house.
He says this is because the valuation of the company's shares, even though the price has increased tremendously, is fair. Stocks in the property sector are trading at a price-to-earnings ratio (PER) of about 12 times. Based on Sunway City's forecast EPS for FY2008 and FY2009, the company's current share price mirrors the sector's valuation of 12 times, which means it is fully valued.
But RHB Research feels that Sunway City deserves a higher PE multiple valuation of 16 times because of its exposure to high-end properties and its plan to unlock value via the establishment of a real estate investment trust (REIT).
Before the REIT can be established, Sunway City needs to redeem the properties that are tied to an asset backed securitisation (ABS) bond issued in 2002.
Towards this end, Sunway City is issuing a RM250 million bond to RHB Investbank. The proceeds from the issuance of the bond are to be used to redeem the ABS bonds. After the redemption, Sunway City would own the properties which it plans to inject into a REIT.
It is considering injecting eight of its properties, namely Sunway Pyramid mall and hotel, Sunway Resort Hotel & Spa, Menara Sunway, Monash University Campus, Sunway University College, Sunway Carnival Shopping Mall in Penang and a Giant hypermarket in Ipoh.
Sunway City expects the REIT to have a total market value of RM2.91 billion and will end up holding a 33% stake in the trust. RHB Research expects Sunway City to receive net proceeds of RM738 million, which will be used to reduce its debts, which amount to RM903.5 million at present.
With the company's turnaround plan mapped out, the government's incentives for the property sector could not have come at a better time.
The last piece of the puzzle for the company is to ensure the take-up for its properties is high.
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Expansion repositions Sunway Pyramid
By Leong Hung Yee
PETALING JAYA: Sunway Pyramid Sdn Bhd is set to be one of the larger shopping malls in the Klang Valley upon the completion of its expansion programme.
Sunway City Bhd property investment managing director Ngeow Voon Yean said Sunway Pyramid shopping mall should not be viewed as two separate buildings when the extension was completed.
Ngeow Voon Yean with the model of the bigger Sunway Pyramid shopping mall
“When completed, there will be no phases I and II like other shopping malls. It will be a whole new Sunway Pyramid. We see ourselves as one shopping centre,” he said in an interview.
Sunway Pyramid is 52% owned by Sunway City and 48% by the Government of Singapore Investment Corp.
Ngeow said the return on investment for its RM550mil extension was estimated to take 10 years.
“We took less than 10 years to recoup investments in the existing phase,” he added.
The RM550mil new investment includes RM25mil for dedicated ramps connecting to the New Pantai Expressway from both Subang Jaya and Kuala Lumpur.
Another RM50mil is allocated to refurbish the existing shopping mall to blend in with the new extension.
Scheduled for completion next September, the extension will add a gross area of 1.5 million sq ft to the existing 2 million sq ft in the mall.
“Upon completion, the whole shopping mall will have about 1.7 million sq ft of net lettable area,” Ngeow said.
The shopping complex will have four distinct zones: Fashion Central, Asian Avenue, Marrakesh and Oasis Boulevard. Apart from the existing tenant Parkson, new tenants would include Jusco, Harvey Norman, California Fitness and Tony Roma's.
According to Ngeow, architecture in the extension will reflect a contemporary retail design with elements that resemble the existing Egyptian theme and a huge open-air piazza will be incorporated in the development as well.
He added that the expanded mall was expected to draw 2.5 million visitors a month from 1.5 million currently.
He said part of the existing covered parking bays would be turned into shoplots, and the monorail station would be relocated to the new Sunway Lagoon resort entrance.
On increasing competition in the retail scene, Ngeow said: “We have made a name for ourselves and we have throngs of tourists visiting the mall. Moreover, we have a high tenancy rate and there is still a long list of people waiting to come in.”
Ngeow said the group still had 100 acres of undeveloped land in the area.
Among ongoing developments is South Quay, which will feature high-end mixed properties comprising condominiums, luxury villas, serviced apartments and offices fronting a lakeside.
“We are also presently involved in developing four office towers east of the Sunway township and a multi-storey small-office home-office commercial residential tower next to Sunway Pyramid,” he said.
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Thursday May 24, 2007
Discerning house buyers
PETALING JAYA: Buyers are becoming more discerning and want houses that stand for a certain lifestyle and provide more than just a roof over their heads.
In line with this, Sunway City Bhd (SunCity) believes that a house should be defined by its quality, and so should be built as more than just a shelter, a company spokesman said.
The property developer has completed projects at more than 20 locations locally and abroad. Its developments range from residences, retail, and offices to industrial units.
SunCity Bhd's D'Villa show unit at Kota Damansara
SunCity prides itself for its “resort living within the city” concept in Bandar Sunway. Its ongoing high-end developments include D’Villa in Kota Damansara, Casa Kiara II and Kiara Hills, both in Mont’ Kiara, and The Palazzio in Hartamas.
Units at Casa Kiara II, with a gross development value of RM125mil, are priced from RM600,000 each. The units have built-up areas of 1,375 to 1,574 sq ft.
D’Villa comprises two-storey and 2½-storey detached units priced from RM2.5mil onwards. The bungalows offer 5+1 rooms with seven bathrooms and built-up areas of 5,198 to 6,651 sq ft.
An artist’s impression of SunCity's development, Casa Kiara II, Mont Kiara
The company’s emphasis on quality and service excellence has been the driving force behind all its developments. It has been voted “Top 4 Property Developers” in Malaysia for four consecutive years from 2003 to 2006, and named one of Malaysia’s ‘Top 3 Property Developers” by Euromoney in 2006.
SunCity is currently working on the Sunway South Quay development located at the southern precinct of Bandar Sunway. The project will have a mix of luxury lakeside bungalows, high-end condominiums, serviced apartments, boutique shops and retail outlets, shop offices and suites.
The new Monash University Malaysia campus is located within this development. The 178-acre project (including a 28-acre lake and the campus) has a gross development value of RM3.7bil.
The spokesman said SunCity’s recipe for success was its branding, innovative designs, and competitive prices.
After being in the business for more than 20 years, the company remains focused on its pursuit to stand out as a premier property developer in Malaysia and overseas.
SunCity had responded successfully to the challenges of the industry and would continue to strive for excellence, the spokesman added.
