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Discussion Starter · #1 · (Edited)
Sunrise to set KLCC land price record
By Presenna Nambiar Published: 2008/05/28

The developer plans to pay RM179 million, or RM2,588 per sq ft, for the Kuala Lumpur City Centre land, higher than what YTL Corp paid for 0.4ha in Jalan Stonor

SUNRISE Bhd has proposed to buy a piece of prime land in the heart of Kuala Lumpur, a deal that will set a new record for land prices in the Kuala Lumpur City Centre (KLCC) area.

The freehold 69,171 sq ft land houses the 29-year old Wisma Angkasa Raya, and is a stone's throw from the Petronas Twin Towers.

Sunrise plans to buy the land for about RM179 million, or RM2,588 per sq ft (psf), higher than what YTL Corp Bhd paid for 0.4ha in Jalan Stonor earlier this year.

"The price is undoubtedly a new record for Kuala Lumpur," Aseambankers analyst Ong Chee Ting wrote in a report yesterday, adding that it is a fair price.

The deal reflects the bullishness of Malaysian developers as the capital grapples with a shortage of office space.

The land "has potential to be redeveloped into an upmarket commercial development", Sunrise said in a statement to Bursa Malaysia on Monday.

The main risk to the project is that Kuala Lumpur may have too much office space by 2010.

Nevertheless, that risk is offset by the fact that the site is a good location, Ong noted in his report.

Under the deal, Sunrise is buying all of Tanah Tuah Development Sdn Bhd for RM27 million cash from Reliance Pillar Sdn Bhd and Lembaran Segimaju Sdn Bhd.

Tanah Tuah has an interest in the land as it signed a deal on January 14 this year to buy the property for RM152 million.

However, that deal is not completed yet. Sunrise did not identify the original landowner.

In addition, Sunrise will settle a RM30.4 million loan given to Tanah Tuah by Reliance Pillar and Lembaran Segimaju.

Ong calculates that if Sunrise's new property can be sold at RM1,300 psf, there is still a hefty 30 per cent margin to be made.

"This translates into potential gross development value and development profit of RM900 million and RM208 million respectively," he said.

Reliance Pillar and Lembaran Segimaju bought into Tanah Tuah this month for about RM40 million.


106,805 Posts
Discussion Starter · #2 ·
Sunrise to redevelop Wisma Angkasa Raya

PETALING JAYA: Sunrise Bhd is believed to be acquiring Wisma Angkasa Raya, located opposite the Petronas Twin Towers in Kuala Lumpur City Centre (KLCC), for redevelopment into an upmarket commercial project.

In a filing with Bursa Malaysia on Monday, the property developer said it had entered into an agreement with Reliance Pillar Sdn Bhd and Lembaran Segimaju Sdn Bhd to acquire Tanah Tuah Development Sdn Bhd for RM57.4mil.

Sunrise will pay RM27mil in cash and make a RM30.4mil shareholders' advance to Tanah Tuah. It has paid a deposit of RM5mil.

According to the announcement, Tanah Tuah has registrable interest in a piece of freehold land within the KLCC.

“Tanah Tuah represents a good investment as the property that is being acquired by Tanah Tuah has potential to be redeveloped into an upmarket commercial development, which will further strengthen the group's presence in a prime location,” Sunrise said in the statement.

Tanah Tuah had in January agreed to buy the 1.6-acre land from the original owner for RM152mil but the agreement has yet to be concluded.

Sunrise said it had taken the necessary legal measures to safeguard its interest in the event the company's agreement with the vendors was completed before the completion of the accord between Tanah Tuah and the original owner.

Wisma Angkasa Raya, which is around 29 years old, is Kuala Lumpur’s first high-rise office building. The unencumbered property is a 24-storey commercial building comprising a 20-storey office tower and a four-storey podium with two basement carparks.

It has a total net lettable area of 167,728 sq ft and an occupancy rate of 96.4%.

Aseambankers research analyst Ong Chee Ting said that assuming Tanah Tuah had taken a 100% debt funding for the purchase, Sunrise’s RM27mil cash payment to the vendors would have raised its acquisition cost to RM179mil, or RM2,588 per sq ft.

“Even at RM2,588 per sq ft, it is considered a fair price. Assuming that KL City Hall grants Sunrise a 10 times plot ratio for redevelopment, similar to the upcoming Menara YNH in Jalan Sultan Ismail, the price per plot ratio works out to RM259 per sq ft.

“Adding RM500 per sq ft per plot ratio for the construction of an upmarket development and factoring in an efficiency ratio of 80%, the total construction cost comes to about RM1,000 per sq ft per net saleable area,” Ong said.

Given that KL City Hall has raised the plot ratio for commercial development to nine to 10 times now compared with Wisma Angkasa Raya's three times, Ong said the redevelopment could yield a gross development value of at least RM900mil.

“If Sunrise’s new property can be sold above RM1,300 per sq ft, there's still a 30% margin to be made. This translates to a development profit of RM208mil,” he said.

Ong said the risk for the redevelopment plan was a possible oversupply of new office space in Kuala Lumpur by 2010, although this risk is “mitigated by the property’s prime location''.

106,805 Posts
Discussion Starter · #8 ·
Sunrise pays RM179m for land near Petronas Twin Towers
By Ooi Tee Ching Published: 2008/08/29

SUNRISE Bhd may carry out a mixed development project on a piece of prime land opposite the Petronas Twin Towers where Wisma Angkasa Raya now sits.

This could include hotels, offices and service apartments, executive chairman Tong Kooi Ong said in a briefing in Kuala Lumpur yesterday.

Plans will be finalised by the third quarter of 2009.

"We'll get the best architects to come up with an iconic structure," he said.

The property developer, under a deal with Reliance Pillar Sdn Bhd and Lembaran Segimaju Sdn Bhd, will pay RM179 million for the 69,171sq ft land on which the building is situated, or an equivalent of RM2,588 psf.

That price is a record for land bought for redevelopment in the Kuala Lumpur City Centre area.

Wisma Angkasa Raya, which is around 29 years old, is Kuala Lumpur's first high-rise office building. The unencumbered property is a 24-storey commercial building comprising a 20-storey office tower and a four-storey podium with two basement carparks.

It has a total net lettable area of 167,728 sq ft and an occupancy rate of 96.4 per cent.

Sunrise reported a net profit of RM45 million for the fourth quarter to June 30 2008, a 28 per cent jump from the same quarter a year ago.

Revenue improved 48 per cent to RM258 million.

Sunrise has a dividend policy of 35 per cent of the group's profits but for the financial year ended June 2008, there is no cash dividends.

"We've already informed shareholders that Sunrise bought shares from the open market and gave out treasury shares in lieu of cash," Tong said.

106,805 Posts
Discussion Starter · #9 ·
Sunrise to proceed with launch of 3 projects
New Straits Times 10-29-2008 Byline: Sharen Kaur

Sunrise Bhd plans to proceed with the launch of three projects next year despite concerns over cooling property prices.

The projects, two in Malaysia and one in Canada, are worth a combined
RM2.5 billion
and had been slated for launch in December this year but deferred a few months due to weak market sentiments.

The projects comprise 28 Mont’ Kiara, a six-star condominium development worth RM900 million; Solaris Towers, featuring two office blocks worth RM600 million, and a RM970 million maiden project in Richmond, Canada, featuring five residential blocks with commercial elements.

Executive deputy chairman Datuk Allan Lim Kim Huat said Sunrise will prepare for the launches when the market is better and hold the launches till costs reduce. He did not rule out putting Solaris Towers up for sale en bloc.

According to Lim, Sunrise will grow from the Richmond project as margins are similar to its projects in Malaysia. The project is a modification of Mont’ Kiara but with smaller built-ups of between 600 sqf and 700 sqf.

Lim also expects the easing of commodity prices to stabilise earnings. He hopes Sunrise’s net profit and revenue will perform better this year, given that it has RM1.36 billion of unbilled sales with 32 per cent gross margins that will be realised over the next 30 months.

For its fiscal year ended June 30, 2008, Sunrise achieved a 119 per cent growth in net profit to RM147.8 million from the previous year’s RM67.5 million. Revenue rose by 22.9 per cent to RM685.8 million. Sunrise’s unbilled sales will soon reach RM1.49 billion as it gears up to sell 19 completed bungalows worth RM130 million.

"We hope to improve our performance this year. The next two to three years will not be an issue for us as by 2010, we expect to launch the (mix development) project at Wisma Angkasa Raya in Kuala Lumpur, which is in the planning stage now," Lim said.

Sunrise hopes to maintain the pricing of its products which are targeted at medium- to high-income groups despite the economic slowdown. Its remaining 32ha in Mont' Kiara, with an estimated gross development value of more than RM3 billion, will continue to be the cash cow for the company over the next six to eight years.

Its other land bank include 160ha in Mersing, Johor, 80ha in Seremban, Negri Sembilan and 22ha in Serdang, Selangor for future launches.

106,805 Posts
Discussion Starter · #14 ·
Pressure on owners to refurbish old buildings
By Sharen Kaur Published: 2011/03/17

THERE will be pressure on owners of old office building in the Klang Valley as they will be forced to refurbish or redevelop their properties to keep tenants.

Landlords of aging buildings will face a threat with 17.1 million sq ft of new office space coming into the market by 2013, said CH Williams Talhar & Wong Sdn Bhd managing director Foo Gee Jen.

To face off competition, Foo said, the landlords will have to consider installing green features and modern facilities to flow with the current trend.

"The only way forward is to demolish the buildings and rebuild," Foo said yesterday in Kuala Lumpur, at the launch of the company's 2011 property market outlook report.

Old buildings in Kuala Lumpur that will be demolished to make way for new projects include Kompleks Antarabangsa and Crowne Plaza Mutiara Hotel on Jalan Sultan Ismail, and Wisma Angkasa Raya on Jalan Ampang. Bangunan MAS, meanwhile, will be upgraded.

Foo said it would cost landlords some RM250 per sq ft (psf)to build a new tower and about RM150 psf to refurbish an old building, of more than 25 years.

"With a fresh look and new facilities, they can raise their rental rates," he said.

Currently, a building more than 10 years old is tenanted at around RM5.00 psf while less than that is going for RM6.00 to RM6.20 psf. For the new office supply, the asking price is RM7.00 to RM7.50 psf, Foo said.

On the new supply, Foo said there could be a challenge by the building owners to fill up the space but it may be overcome if the entry point projects (EPP) under the Economic Transformation Programme (ETP) are implemented yearly.

Foo said with the EPP and ETP, more multi-national companies (MNCs) are expected to relocate here.

"There is strong interest from MNCs from the US and Europe involved in oil & gas, pharmaceuticals and information technology," Foo said.

He said the ETP and EPP will also strengthen the market for residential properties, retail and hotels.

"The landed residential segment will remain the most active this year while we expect moderate growth for the rest of the sectors," Foo said.

1,020 Posts
Sunrise Tower Kuala Lumpur by Zaha Hadid

Zaha Hadid’s design for Sunrise Tower in Kuala Lumpur, Malaysia, engages with the city in multiple ways. By exploring potential synergies at different levels and anchoring itself to the existing urban fabric, it creates a platform of services that engage with neighbouring developments, sustaining critical mass and a sense of community. The scheme merges all programmes into one building, distancing itself from the traditional tower and podium typology. Through a detailed landscape strategy the design interweaves tower and ground, extending and connecting the different parts of the site, integrating the new pedestrian routes and internal road system, structuring the fabric of the new development.

The building is designed through a series of independent flows that map the tower and organize different routes for different programmes. Along these routes the lobby and shared facilities floors work as communication hubs, like intersections that enable flexible itineraries and changes between uses. Similarly to the skin, the circulation materializes as a multi dimensional spatial grid, inclusive of the program, treating interior and exterior in a seamless way, thus maximizing the clarity of the scheme and the perception of the different levels. The design of a clear navigation system for lobbies, atria and common areas, enables visual communication as well as access through the cores, ensuring fully accessible environment for all users. The building’s complex programme is distributed through 66 floors in total, 4 bellow ground and 62 above ground, with an absolute height of 280m. The ground lobby is the primary hub of the tower, defining 4 different dedicated lobbies for residential, hotel, offices and general public.
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