MPI Quarterly Newsletter - April 2011

3,196 views

Published on

Published in: Real Estate
0 Comments
1 Like
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total views
3,196
On SlideShare
0
From Embeds
0
Number of Embeds
276
Actions
Shares
0
Downloads
0
Comments
0
Likes
1
Embeds 0
No embeds

No notes for slide

MPI Quarterly Newsletter - April 2011

  1. 1. FA C ILITAT ING & PROMOT I N G I N VE ST M E N T F O R M A LAY S I A N R E A L E S TAT E | www.malaysiapropertyinc.com April 2011 GALLERY UPDATE Singapore Foray Success OPINION Rigged for Success REGIONAL FOCUS Penang: Idyllic Island ParadiseALL EYES ON MALAYSIA SPOTLIGHT Mark of Distinction Making Malaysia more Accessible
  2. 2. GALLERY UPDATE In the months leading up to March 24th, The general consensus is that Iskandar Malaysia Property Gallery (MPG) has continued Malaysia appears to be the natural hinterland to be relevant in the eyes of Singaporeans of Singapore and as more of their residents and beyond. are priced out of their home country, Iskandar becomes more relevant by the day. Although March, in particular, has been a busy month for there are still challenges posed by Johor Bahru, MPG, whereby we had Mulpha International, as the state resolves to tackle its issues of Sunway Group and Bandar Raya Development perception, the benefits will definitely pour Berhad taking turns showcasing their projects in in for investors. our gallery. The three, leaders in their respective fields, managed to draw encouraging response Greater Kuala Lumpur, with its efforts to from the Singapore public. transform itself into a cosmopolitan city, continues to attract interest from Singapore. The recently concluded iProperty Expo held The residents of this city state are sold on the at Marina Bay Sands (MBS) convention centre MRT and LRT-expansion plans, as they went drew a large crowd of visitors and Malaysian through the same infrastructure changes over developers accounted for more than half of the the last 15 years and most of them are direct total space occupied. beneficiaries of increased property values due to those improvements. The cultural similarities and proximity of the two countries makes Malaysia a natural KL also offers the best mix of variety and alternative for real estate investments. competition among the many real estate Property developers who know this have developers in Malaysia and it has evolved been taking advantage of the fact that the into a dynamic and viable alternative. Singapore Government has been actively Best summed up by a German expatriate trying to cool the run-away property market by residing in Singapore, KL offers 90% of the imposing more stringent controls as a measure conveniences in Singapore at 30% of the cost; of curbing speculative purchases. Malaysia he has since invested in Malaysia for his stands to benefit from this and is increasingly impending retirement. seen as an alternative investment opportunity for Singaporeans. Total sales, since opening in October 2010 amounted to RM58 million and moving forward, we are confident of increased sales volume for Malaysian properties, as we get to better understand the investment criteria of Singaporeans and others who reside here. Abraham Philip Jacob is Vice President I , Investment Promotions at MPG in Singapore. SINGAPORE FORAY SUCCESS INVESTORS FROM SINGAPORE ARE LOOKING ACROSS THE CAUSEWAY AS AN ALTERNATIVE IN VIEW OF THEIR GOVERNMENT’S INCREASINGLY STRINGENT MEASURES ON REAL ESTATE By Abraham Philip Jacob1 real estate malaysia april 2011 2
  3. 3. OPINION NEWS MPI AND On the office front, he and his team have been That is the single most active in acquiring standing investments and important thing that Kuala development. The team funded Linklaters & Lumpur needs to develop. PROPERTY Paines’ 450,000 sq ft global headquarters at the Barbican in 1994, the first significant What advantages does development in the City of London following Malaysia have compared with the early 1990s crash. Other funding projects include the headquarters other emerging markets? Malaysia has stable economic growth, space, a young DEVELOPER of JP Morgan Chase in Gresham Street in the City; the headquarters of Rabo Bank in Upper Thames Street, as well as the acquisition and subsequent sale of the Lloyds building educated workforce with good work ethics, cultural diversity and a strategic geographical location between the two big JOHN RIGG “Real estate has SYNERGY amongst others. In the West End, they helped economies, China and India. to be packaged in a simple way with on site acquisition, development, funding and easy access.” By Chan Tze Wee and A. Lalitha letting of the landmark Mayfair project 1. What are the fundamental factors that European funds Rigg was in town recently at the invitation of look at before investing in Malaysia Property Incorporated. Real Estate South East Asian countries Malaysia caught up with him to gauge the and emerging markets? perception of European institutional funds These funds are very towards Malaysian real estate. risk-averse. They are more interested in not losing simple, clear and guarantees money than making money. predictable returns. They expect high level ofRIGGED What is your impression of Malaysia and Kuala Lumpur as a capital city? security and low risks on investments. International funds are receptive towards this sort of investment. In summary, In the mid-2000’s, the Malaysian real estate industry entered a phase where an availableFOR stock of property, mainly grade-A commercial The last time I visited Kuala Do you think, Malaysian these funds are looking for a buildings, luxury condominiums and major Lumpur was in 1983. I stayed assets are attractive to simple way of investing with regional retail malls, was seen as attractiveSUCCESS at the [then] Hilton Hotel, international funds? relatively management-free to foreign investors. A combination of which overlooked a race Union Investment Real Estate, and predictable returns. the launch of Malaysia’s long-stay visa course. I was amused, as a fund from Germany, acquired programme, Malaysia My Second Home, and from my window I could see CapSquare’s 41-storey office What can Malaysia do the increasing expansion of multinationalTHE HEAD OF SAVILLS people cheering for a race taking place in Penang! tower at the Capital Square Development Project from to attract international funds into the market? corporation branches in the country turnedINTERNATIONAL Bandar Raya Developments Malaysia needs to more foreign homebuyers’ attention to the Malaysian residential market.INVESTMENT GIVES I have always thought Berhad in 2008. Savills has structure investments to beHIS PERSPECTIVE ON Kuala Lumpur is a great city, but the change over the years been involved in the leasing of the building. It’s a brand new relatively easy, transparent and tax efficient. In light of this, Malaysia Property Incorporated began in November 2010 to engage activelyMALAYSIAN REAL ESTATE has been phenomenal. The office building with retail space, with local developers through a series of prosperity, new developments, ample parking space and raised The first investors into an briefings to the Real Estate Housing architecture and the overall floors. This is the sort of asset economy are traditionally Developers Association (REHDA) members cleanliness of the city is that would attract funds. venture capitalists, but that of three states —Penang, Kuala Lumpur,By Sulocana Suppramaniam very impressive. If good quality assets are theory has probably passed and Johor. A fourth session for REHDA Sabah available in the market, they for Malaysia. The next is in the pipeline. Having said that, Kuala Lumpur will definitely be sought after. theory is attracting moreJohn Rigg is well known for his success is at the stage of development institutional investmentsin bringing German funds into Britain. A where it really needs to have What are average yields that with large sums of capital inDirector and Head of Department at Savills a Mass Rapid Transit system, these funds are expecting place that require a degreeCommercial Limited in Britain, he joined the which it has already put in from such investments? of security. They are risk- These briefings serve as a platform for MPI also provides various publicationscompany in 2001. Prior to this he worked for place. The timing is right and The traditional running yield averse investors who are MPI to receive updates on current and designed to assist foreign investors inDTZ, Gerald Eve and GLC. He is a Fellow of the that will be a major factor from such assets tends to be not looking primarily at the upcoming projects by developers in Malaysia. getting reliable information on MalaysianRoyal Institution of Chartered Surveyors and a in the future of the city at 6% to 7%. The foremost returns but also at the levels Through this effort, MPI is able to identify real estate. These include materials suchmember of the Anglo American Real Property because if it relies solely on reason for the success of security and confidence. investment grade assets, joint-venture as Kuala Lumpur, Penang and SouthInstitute. Rigg’s major clients include Deka, motor vehicles its potential of London in attracting opportunities and possible collaborations Johor investor maps and MPI’s quarterlyUnion Investment Real Estate, Commerce Real, for growth will be limited. international funds is the Therefore, real estate has to around the country that would be suitable newsletter with insightful topics such asCGI and DIFA. full repairing and insurance be packaged in a very simple for foreign investors. These projects are then “36 Reasons to Buy Malaysian Properties”. Metropolitan cities such as lease. The full repairing and straightforward way with included in MPI’s property bank, which isRigg has overseen around £14billion New York, Tokyo, London and and insurance lease gives easy access. Normally the marketed to potential foreign investors. With these new synergies being formed,(USD22.8billion) worth of investment, Paris have only been able to a neutral triple net return. most effective assets are CBD consolidated efforts between REHDA membersincluding the £1.5billion (USD2.4billion) develop by introducing a way The tenants are responsible (Central Business District) On the developer front, MPI continuously and MPI will continue to push Malaysian realfunding of the Westfield London shopping of bringing large numbers of for the maintenance and office buildings and retail malls. creates new avenues for developers to estate towards higher international standards.centre in west London by CGI. Most recently people into the city centre to cleaning of the building and participate and market their projects overseas,he has advised on the largest retail schemes in work without them having to the investor gets a net return most notably the Malaysia Property GalleryNorthern Ireland, Eire, Scotland, UK and Italy. drive their vehicles to work. on investments. It is very in Singapore.3 real estate malaysia april 2011 4
  4. 4. REGIONAL FOCUSIDYLLIC Voted as one of the top 10 islands in the Given the current situation, now would “Penang has become more accessible and now has products world “you must see before you die” by be the best time to invest in real estate on that are more appealing to Yahoo! Travel writer Greg Mckechnie, it is no the island, he advised. foreign, high-end investors, thusISLAND wonder Penang holds the eighth position drawing more attention to it...” — Zerin Properties — in this poll. It has so much to offer, not Other investors are retirees from only for tourists but investors as well. Indonesia, Singapore, China and Japan who arePARADISE Situated approximately 190km away (a four hour drive) from metropolitan Kuala participating under the Malaysia My Second Home Programme (MM2H). They consider Penang to be a pleasant place and less heavy In 2010, Penang recorded the highest total capital investments in Malaysia. The state attracted RM 12.2 billionPENANG’S RAPID DEVELOPMENT AND MANIFOLD Lumpur, Penang is fast becoming a popular lifestyle destination and many luxurious on the pocket where real estate is concerned compared with places like Shenzhen, Singapore, worth of investments, up five-fold from RM 2.2 billion the previous year.ATTRACTIONS ARE DRAWING INVESTMENT INTEREST condominiums and landed properties are Hong Kong, Shanghai and Xiamen.FROM AROUND THE WORLD steadily being built around the island to cater to the demand from the local population. Aside from property values, foreign investors In light of the current pace of Penang’s modernisation, which may leave many also find the cost of living in Penang to be much traditional buildings defaced or torn down, Why is the island such a popular place lower compared to where they come from George Town, the capital of Penang, wasBy TJ Cheah for property investors? (mainly Australia, Europe, Japan and Korea). declared a UNESCO World Heritage Site on July 7, 2008. George Town was also “Penang has become more accessible and Another attraction is the advanced medical ranked as the 9th most livable city amongImagine waking up to the sound of splashing now has products that are more appealing facilities available on the island. The world-class 49 Asian cities and 63rd among 254 citieswaves and the sight of golden brown sand on to foreign, high-end investors, thus drawing medical services at institutions such as the worldwide by ECA International in 2008.Batu Ferringhi beach along the Straits of Melaka. more attention to it,” explains Zerin Gleneagles Medical Centre, Penang AdventistWhile you draw in your first morning breath, Properties managing director Previn Singhe. Hospital and Island Hospital account for two- This award immortalises Penang’s uniqueyou get a whiff of delicious food permeating thirds of Malaysia’s medical tourism facilities. amalgam of the old and new and offersthe air. The rising demand comes not only from locals. opportunities for building restoration Foreigners who hail from Australia, Singapore, Previn Singhe noted that Penang’s medical programmes and tourism revival activities.Imagine again, passing by the beautifully South Korea, Japan and Great Britain are also tourism is thriving due to its proximity to On Lebuh Farquhar, the legendary Eastern andconstructed 19th century British colonial investing in Penang properties. As a result, Indonesia. In addition, the surrounding Oriental Hotel, after years of faded grandeur,buildings while you’re out and about and property prices are set to rise even further. beaches and exposure to nature provide closed for a well needed renovation. Nowpausing to drink in the architecture of a excellent conditions to recuperate. all spruced up, it has regained its old charm,bygone era that has stood the test of time. Hunza Properties Berhad (HPB) Group with the original floors and mouldings. TheIn the background, graceful highrise executive chairman Datuk Khor Teng Penang, being the third-largest economy after stunning newly-painted white stucco hotelbuildings soar above, a perfect modern Tong thinks that the scarcity of land on Selangor and Johor in Malaysia, is driven by still has all the exterior Victorian touches andday backdrop for the heritage buildings Penang island, among other factors, manufacturing and services, which contribute like its sister hotel, The Raffles in Singapore,that have been preserved for posterity. has contributed to rising prices. 39% and 57% of the State’s GDP respectively. represents the architecture of a glorious past. Other important sectors of Penang’s economyImagine an idyllic lifestyle on the tranquil, “The increase in building material prices include tourism, finance and shipping. With all this going on, the outlook of propertyyet modern island that is Penang… and labour costs, coupled with a restriction investment is certainly promising. Some on working hours, has resulted in a rise in APPROVED MANUFACTURING projects have registered more than 100% property costs on Penang island,” he said. PROJECTS IN PENANG returns in just over half a decade. An example is Putra Place Condominium, which was 14000 180 “The shortfall in supply of property cannot sold at RM160,000 in 2005 but is now priced Proposed Investment (RM Million) be addressed and overcome in the short term 12000 160 at RM400,000. That is a whopping 125% and this will lead to a situation where supply 120 return on investment in a mere six years. 10000 will not be able to meet demand,” he added. 100 8000 Another condominium at N-Park, Batu Uban, 80 This, he said, would contribute further to 6000 is going for approximately RM190,000 and the increasing trend in property prices. 60 commands a rent of RM1,200 a month, 4000 40 translating into an annual return of 7.7%. NUMBER OF LIVING QUARTERS 2000 Joshua Cheah of Zerin’s Penang office cites AND HOUSEHOLDS IN PENANG 20 (’000) the presence of good international schools, 0 0 colleges and universities as another draw for 2006 2007 2008 2009 2010 500 investors. The State Government is acquiring No. of Applicants SOURCE 100 acres of land in Balik Pulau to set up 400 Domestic MIDA Foreign more educational hubs and facilities. Penang Total also hosts SEAMEO RECSAM, a research and 300 training facility for the enhancement of science 200 The southern part of the island is also and mathematics education in Southeast Asia. highly industrialised, earning it the nickname 100 ‘Silicon Valley of the East’, much in tandem When an island has got all these advantages with KPMG’s professional service report for investment, it is no wonder Penang, 0 in 2009, which listed Penang as the only although the second smallest state in 1980 1991 2000 2010 Malaysian city amongst 31 other cities in the Malaysia, is also one of the country’s richest. SOURCE world that can challenge existing outsourcing Some have labelled it a tropical paradise. Those Population and Housing Census 2010, hubs in India or China principally due to who have purchased real estate here are also Living Quarters Preliminary Count Report, Dept. of Households  Statistics, Malaysia superior human resources and talents. probably calling it an investment paradise.5 real estate malaysia april 2011 6
  5. 5. SPOTLIGHT MARK OF The next phase of the Intermark’s With a nett lettable space of 736,000 sq ft, redevelopment saw the refurbishment of the hotel and retail podium. The former Integra Tower is positioned to attract tenants looking to locate themselves in an BANKING ON MALAYSIAN DISTINCTION Crown Princess was transformed into the international-standard “green building”. 540-room Doubletree hotel. The Doubletree, a prestigious brand under the banner The column-free design gives the building one of the largest floor plates in the Golden REAL ESTATE of Hilton Hotels Corporation, is the first Triangle – averaging 25,000 sq ft per floor – A BRILLIANT MAKEOVER GIVEN TO A TIRED Doubletree to open in South East Asia. and allowing for flexible space planning. BRISCO FAN, PROJECT DIRECTOR OF INTEGRATED DEVELOPMENT COMPRISING THE INTERMARK SPEAKS TO SHEILA COMMERCIAL AND RETAIL ELEMENTS The retail podium has been given a whole new facelift, transforming it into a gleaming Judging from the appearance of the new integrated development and its state-of-the- SINGAM ABOUT THE RATIONALE BEHIND THE ACQUISITION AND REBRANDING PROMISES TO DELIVER GREAT RETURNS retail centre to complement the look and feel art facilities and clean, uber modern design, OF THE INTEGRATED DEVELOPMENT TO ITS NEW OWNERS of the other components. Offering 208,000 sq ft of net lettable area, it has already the Intermark is going to be a talking point amongst investors on the astute strategy of attracted tenants who are expected to “buy and fix” adopted by its new owners. move in progressively and fill the catchment By Sheila Singam population’s need for restaurants, cafes, The strategy may catch on in the region, spas, gyms and other products and services. if the recent purchase of Putra Place for The flagship component of the whole RM513.95 million by Sunway Real Estate Intermark development is the 39-storey Investment Trust is anything to go by.Do you remember the integrated Enter MGPA, an independently managed And so, a new integrated landmark for Integra Tower, currently under construction. Sunway REIT is planning a major turnarounddevelopment comprising City Square, private equity real estate investment advisory the gateway to Kuala Lumpur’s Golden The LEED pre-certified building sits on the exercise for the property. Another markEmpire Tower, Crown Princess Hotel and company representing a broad range of Triangle — the Intermark — was born. site of the former Ampang Plaza, which was of distinction in the making, perhaps?Yow Chuan Plaza (later renamed Ampang institutional investors including some of the demolished to allow it to be built from scratchPlaza) that sat at the junction of Jalan Tun world’s largest pension funds. MGPA saw the Designed to have four components — and incorporate sustainable design features.Razak and Jalan Ampang? Well, it’s gone. potential of the mixed development and in two Grade A office buildings, a hotel The transformation of a tired commercial July 2007, decided to acquire and redevelop and a retail podium pulling the whole precinct in one of Kuala Lumpur’s premierOkay, not gone entirely, because parts it, giving the existing components a complete development together – the redevelopment locations into a cutting-edge developmentof it are still there. But these parts have overhaul and in the case of Ampang Plaza, exercise was carried out in phases. has attracted much attention since theundergone such an extensive makeover knocking it down and rebuilding a new Grade A first Doubletree by Hilton Hotel in Souththat they are practically unrecognisable office building with LEED (Leadership in Energy The first phase saw the redevelopment and East Asia opened its doors there last year.as that faded old haunt you may have and Environmental Design) certification. rebranding of Empire Tower into a spankingvisited to pick up some bargains. Up till four years ago, the development, comprising four tired components – an officeTo be fair, the development wasn’t always tower, hotel and two retail centres builta jaded old dame. In its heyday back in the almost two decades ago – appeared to be1980s, it was probably one of the most in danger of becoming a white elephant ashappening commercial developments of tenants and clientele alike began to shun itsits time. Offering a plethora of upmarket weary, fading premises in favour of other edgyboutiques and restaurants, it was also home new developments sprouting up in the city.to one of Kuala Lumpur’s most popular discos,as well as a highly respected bookshop brand. However, the whole development was promised a new lease of life in 2007 when itHowever, as the years went by and other was acquired by MGPA, an independentlynewer retail and commercial developments managed private equity real estate investmentcame up, City Square and its sister components advisory company with a track record forwent into a slow decline that was exacerbated acquiring, refurbishing and rebrandingby the unending road upgrading works real estate to yield generous returns.that took place along the stretch of JalanTun Razak just outside their doorstep. The Intermark is MGPA’s first foray into the Kuala Lumpur real estate scene. AcquiredThe traffic congestion that ensued put a and redeveloped through its Asian arm,spanner in the development’s accessibility MGPA Asia Developments, the presentand one by one, the tenants began to bow components of the Intermark are beingout of the buildings. Low demand brought transformed into a world-class, integrateddown rental rates and the retail buildings The move was completely in line with MGPA’s new Grade A office building called Vista Tower. mixed-use development and include a spankingbegan to attract a different set of tenants key investment strategy of acquiring sub-grade The completion of the 62-storey building has new environmentally-sustainable Grade Awho contributed to bringing down the tone properties in prime locations and repositioning released 555,000 sq ft of nett lettable space office tower (see accompanying story).of the place. Alas, it looked like the once- them by redeveloping them to provide what that has attracted the attention of someupon-a-time glamorous office-retail-hotel the market wants. In this case, the market prestigious tenants. So far, the list of confirmed Real Estate Malaysia caught up withdevelopment of the Ampang area was going in that locale was ripe for a new, top-class tenants includes the Sumimoto Banking Group, The Intermark project director Briscointo a slow and painful decline, neglected hotel, a prestigious retail centre and Grade BNP Paribas, Thomson Reuters, Roche, Regus, Fan to find out more about the decisionby once-faithful patrons and the owners A office space that would combine to create Ranhill WorleyParsons, Hyundai and the to invest in Malaysian real estate.who no longer saw any merit in the place. a vibrant new hub for work and leisure. embassies of Norway and the Czech Republic. Here are excerpts of the interview:7 real estate malaysia april 2011 8
  6. 6. SPOTLIGHT REGULATIONS ATTRACTIVE FINANCING What are the positive points podium that supports and that spurred MGPA to invest in integrates the development; the Malaysian property sector? and the soon-to-be-completed OPTIONS FOR MGPA is a private equity real Integra Tower, Malaysia’s estate investment advisory first pre-certified platinum company with a team of LEED (Leadership in experienced professionals working throughout Asia and Europe to identify Energy and Environmental Design) office tower. FOREIGN PURCHASERS and secure the best investment opportunities. Which geographic locations are you focusing on in INVESTORS ARE FINDING IT MORE CONVENIENT TO terms of investment? OBTAIN LOANS FOR PROPERTY In 2006, we had the At this stage we are opportunity to acquire a well- focusing on KL City Centre located mixed-development as most investment grade By Afiq Syarifuddin comprising office, retail and properties and opportunities hotel components in Jalan are available here. Tun Razak, Kuala Lumpur. At the time, we saw strong What is your portfolio value? growth outlook for Malaysia’s MGPA is currently managing The ability to acquire property depends very % BASE LENDING RATE (%) It is worth noting that the Economic economy and improving approximately USD10 billion much on the financing facilities available. 7.00 Planning Unit (EPU) of the Prime Minister’s fundamentals, especially in in assets worldwide. The As the single largest commitment for any 6.80 Department has raised the minimum value the Kuala Lumpur City Centre. investment cost of The household, buying property locks away 6.60 for foreign acquisition of residential property Intermark is RM2.2 billion. a large chunk of liquidity in bricks and from RM250,000 to RM500,000 effective 6.40 Our view of the strong mortar, so most purchasers would opt for 1 January 2010. The main intention here growth outlook for Malaysia’s Why did you choose to the road most travelled – a bank loan. 6.20 is to promote the purchase of high-end economy was based on the invest in an existing 6.00 housing properties to foreign purchasers. liberalisation of the financial development as opposed to In 2009, property acquisition guidelines 5.80 services sector to attract constructing a new one? for foreign purchasers were liberalised The new policies on home ownership and 5.60 more financial services One of MGPA’s key investment with the aim of attracting a larger chunk relaxation of lending guidelines for foreign institutions, including strategies is to acquire, of them to high-end real estate. However, 5.40 investors augurs well for the Malaysian growth in Islamic finance. hold and reposition the a major source of concern for prospective 5.20 real estate market. These government subgrade property in Kuala investors still remained and related to 5.00 initiatives, when combined with already What are the sectors of Lumpur City Centre through the availability of financing options from existing characteristics such as a stable FEB 07 MAY 07 AUG 07 NOV 07 FEB 08 MAY 08 AUG 08 NOV 08 FEB 09 MAY 09 AUG 09 NOV 09 FEB 10 MAY 10 AUG 10 NOV 10 FEB 11 the property market that major redevelopment, Malaysian financial institutions. economy, modern infrastructure, centralisedREM: How do you view Malaysia On a macro level, we see new attract you the most? then capitalise on demand location and attractive lifestyle options,as an investment destination? investments coming into Mixed-use Grade A commercial for Grade A office space One of the reasons for this was Bank ensure that it is a great place to invest. office and retail properties SOURCEFAN: We believe that Malaysia Malaysia, creating jobs and complemented by a service Negara Malaysia’s cautious stand on Bank Negara in city centre locations. We retail facility and an offering loans to foreign purchasers. Due Malaysia PURCHASE VALUE LIMITS SET BY THE DIFFERENTis one of the most underrated opportunities for Malaysians. STATES IN MALAYSIAinvestment destinations in On a more micro and very prefer these because these upgraded business hotel. to the 1998 Asian Economic Crisis, which are the sectors in which we saddled Malaysia with overwhelming debt, States min. value tresholdthe region. MGPA made a real level, our development,substantial investment in the Intermark, now boasts have the most experience. Would MGPA continue Bank Negara Malaysia (BNM) tightened Currently, foreigners are allowed to apply Federal Territory of Kuala RM500,000 The subject property to invest in Malaysia? regulations on financing for the property for mortgage loans for residential properties Lumpur & Labuan, Penang, Malaysia in 2007 through the two newly licensed banks, Johor, Melaka, Negeri Sembilan,acquisition of the Intermark. BNP Paribas and Sumitomo was underperforming Definitely. sector to safeguard Malaysia against that are completed and under construction Terengganu, Perlis, Kedah,We’re extremely encouraged Mitsui Banking Corporations and neglected. Against speculative activities that had previously for up to 85% of the market value. Targeting Perak, Selangorto see the bold and positive as tenants at our newly the backdrop of strong What are your reasons? led to a hike in non-performing loans. expatriates working in Malaysia, banks are Pahangsteps the government of refurbished Grade A office economic growth, we saw We have confidence in offering other attractive perks to lure this • All over Pahang RM250,000 • ameron Highlands, Bentong C RM750,000Malaysia is undertaking building, Vista Tower. a strong potential for Malaysia’s continued The effect of this is that in the aftermath borrower segment. & Kuantanto promote Malaysia as an Both are global financial repositioning the subject growth through its positive of the crisis, banks generally took a property with extensive government policies on cautious stand when it came to financing These include benefits such as a loan tenure Sarawak RM300,000investment destination. institutions looking to dramatically increase their capex (capital expenditure) foreign investment. We real estate purchases, particularly reaching up to 40 years, financing for the buyerSince the announcement footprint in Malaysia. to take advantage of have built a team of over when it came to foreigners. up to 70 years of age, reasonably high margin Another important policy to take note ofmade during the presentation improving property 35 local professionals and of financing of 80% to 85% where applicable, is that property disposal within 5 years ofof the mini-budget for the In addition, we believe market fundamentals acquired substantial local This scenario has changed however, and financing for Group Mortgage Term Assurance purchase will be taxed at 5% under the RealSecond Stimulus Package on Malaysia’s comprehensive and the good location. market knowledge over liberalisation of the financial services sector (GMTA), and tailor-made financing to suit Property Gains Tax (RPGT) guideline. However,10 March 2009, Prime Minister rationalisation of the the past four years. has seen banks aggressively competing to different requirements. no tax would be levied should the property beDatuk Seri Mohd Najib Tun investment guidelines will We are pleased that our attract new customers. Malaysia currently disposed of after 5 years.Abdul Razak has followed continue to help reduce views have been validated offers an attractive Base Lending Rate (BLR) Foreigners are required to produce certifiedthrough on his promise to regulatory barriers to entry for with the liberalisation of the at 6.3%, with the effective market rate at true copies of the following documents:liberalise the services sector other international investors. financial sector and we now -1.8% to -2.5%, a level that is quite inviting • International passportto attract more foreign have transformed a tired for foreigners actively seeking financing • Latest income statementinvestments and bring more property into a Grade A office options here for their property purchases. • Income tax slip for the past one yearprofessionals and technology space known as Vista Tower; • Sale & Purchase Agreementas well as strengthen the an international business • Downpayment receipt for the propertycompetitiveness of the sector. class hotel managed by • ny other documentation that may be A DoubleTree by Hilton; a retail required at the point of application9 real estate malaysia april 2011 10

×