Gardenz @ One South ~ Seri Kembangan ~ by Prop Park Sdn Bhd

Project name:          Gardenz @ One South
Area:                       Serdang Perdana, Seri Kembangan

Developer:               Prop Park Sdn Bhd (www.huayang.com.my)

Type:                       Serviced Residence

Tenure:                    Leasehold (Commercial land title)

Price range:              from RM380,000 to RM520,000
Size range:               from 1,020 to 1,220 ft2

Price/ft2 range:        approx. RM373 to 426/ft2
Total Units:              377 units
*Above info @ July 2011 

You can get more info from following website:
http://onesouth.huayang.com.my/

http://www.iproperty.com.my/developments/developmentreview.aspx?pid=2123

The developer: 
Prop Park Sdn Bhd is a wholly-owned subsidiary of Hua Yang Berhad which started business since 28th Dec. 1978 (approx. 33 years in business) and majority of their developments are in Perak. They also have development in Klang Valley, Johor and Negeri Sembilan.
Hua Yang is listed on the Main Board of KLSE ~ current share price is 1.58
They are the one who develop Symphony Heights too.

Location:

Sri Kembangan is quite far away from KLCC, it is in between Puchong and Kajang. The Site Location is closed to The Mines.

Price:
Although it is slightly closer to KLCC compare to Puchong but the price/ft2 is approx. 30% higher compare to: 

• Calisa M @ Puchong ~ price from approx. RM286/ft2 (price info @ Aug 2011)(http://awonginvestment.blogspot.com/search/label/Malaysia%20Properties)

Another example, it is slightly further away form KLCC compare to Sri Petaling, yet the price/ft2 is approx. 8% higher compare to:

• 8 Petaling @ Sri Petaling ~ price from approx. RM346/ft2 (price info @ Aug 2011) (http://awonginvestment.blogspot.com/2011/08/8-petaling-by-petaling-garden-sdn-bhd.html)

Now compare with same area in Seri Kembangan, price increased 42% in one year??

• The Sanderson @ Seri Kembangan ~ price from approx. RM263/ft2 (price info @ July 2010) (http://www.thesanderson.com.my/) (http://www.iproperty.com.my/developments/developmentreview.aspx?pid=1761)

My View:

Although price is slightly 8% more than 8 Petaling @ Sri Petaling, this might be due to better location (closed to The Mines), better developer (public listed company), more facilities etc. So best way is to go there have a look, compare both development, before making any decision. 

Total 377units vs 8 Petaling @ Sri Petaling which only have 156units. Check below the site plan, still have few more developments to go in the future. So the total units might increased further. 

To some ppl more units might be a disadvantage........ yet it can be advantage too if the development is successful, the price for future development will become more expensive than now, just like what happened in Sentul.

Based on 90% loan for RM380,000, say BLR6.6%-2.2% = 4.4% interest per annum, for 30 years. The monthly repayment is approx. RM1,632. If you are planning to buy & rent for investment, you need to take this into consideration. Will ppl willing to pay more than RM1,632 per month to rent a place in Seri Kembangan?

Don't forget the approx. monthly repayment of RM1,632 excludes following items:
a) Maintenance fees
b) Assessment tax
c) Quit rent
d) Interest rates increased for the loan (this is the main risk as BLR still low at the moment)

As mentioned before, recently a lot of condo launched around Cyberjaya, which is far away from KLCC, selling more than RM400/ft2.

Thus the price for this condo might consider reasonable (but at top end) to me and I would prefer Sanderson more.

To me I still believe the property prices in Klang Valley are too high at the moment and should collapse soon (maybe after 2012 election). Unless you are desperately to invest now, we shall keep more cash in hand for rainy days or shall not invest in properties more than RM400/ft2 unless it is a prime location not far away from KLCC.

PUNCAK drop around 63% ~ potential share for investment?

PUNCAK (6807) http://www.puncakniaga.com.my/

Background:

• Established in 7th January 1997 and listed on the Main Board of KLSE on 8th July 1997 (14 years in business).
• This company is the leading regional integrated water, wastewater and environmental solutions provider and to emerge as a significant player in the oil & gas sector.
• The company structure is as follows:

Current Share Price:  1.13





My View:

This share has drop around 63% recently since Sept 2010.

Why DROP so much??

Check this out (article in 2010):

Tan Sri Rozali paid RM21,795 per day in 2009

According to Puncak Niaga Holding Bhd’s audited account for 2009, Syabas CEO Tan Sri Rozali Ismail was paid RM6.8 million. Rozali is also the Selangor Umno treasurer. Recent news reports have contained allegations that Syabas imported RM375 million worth of pipes from an Indonesian company owned by Rozali, instead of sourcing them locally in June 2005.

More than 72% of contracts, worth RM600 million, was awarded through direct negotiation, not open tender process. Between 2005 and 2007, RM325 million could not be accounted for in Syabas’s public accounts and the record of contracts. RM51.2 million, or 120% more than the RM 23.2 million approved by Jabatan Kawalselia Air Selangor (JKAS), was spent on Syabas office renovations.

Meanwhile, the profits of Puncak Niaga, the holding company of Syabas has dropped from RM364.5 million in 2005 to RM21.57 million in 2008. The total debt of the Selangor water privatised companies is RM6.4 billion but they have been paying dividends amounting to more than RM700 million to-date.

In December 2009, the federal government provided a RM320.8 million back-loaded interest free unsecured soft loan to Puncak Niaga, the holding company of Syabas, to settle their debts.

The federal government is reported to be looking into a further RM1 billion bailout of Syabas at the end of this year.

http://www.mysinchew.com/node/49312?tid=14

Disregards the above, Puncak:

• Operate, manage and maintain 29 Water Treatment Plants in Selangor and KL (equivalent to approx. 49% of treated water distributed to the five million domestic agricultural and industrial end-users.)
• Operate and maintain 3 Dams (Sungai Langat, Klang Gates and Tasik Subang)
• The above operates & maintains agreement expires on 31 December 2020 (started since 1994/95, approx. 25/26 years of contract) 9 more years to go

I'm currently looking at this share at the moment. The reasons i might invest this are as follows:

a) Value drop 63%
b) Major shareholder are 

• Tan Sri Rozali Bin Ismail with approx.  41.25%
• Central Plus (M) Sdn Bhd with approx. 30.24%
• EPF with approx.                                     11.08%
• Total approx.                                          82.57%

Even things happened in 2009, until now Tan Sri Rozali Bin Ismail still tworking as the Executive Chairman. Wonder why? Must be a very powerful guy?

EPF in 1Q2010 hold approx. 13.53% of this company shares, until now 3Q2011 it still has approx. 11.08%. Why? Previously purchase price too high? They believe the price will go up? Have you ever heard companies with EPF as major shareholder gone bankrupt before?

Puncak still have 9 more years to go with the existing contract. Easy money continue to flow in? Selangor got approx. 5.5millions of populations. Say RM1 increased every month for 9 yrs = RM594millions

Puncak now have more business in China and India. More potential to increase profit?

One main point is Puncak have stop paying out dividends now. If you are not risk taker, you should consider put it in the bank for FD and get around 3% interest per annum.

Boulevard Residence Damansara @ PJ by OCR Sdn Bhd

 
 

Project name:          Boulevard Residence Damansara
Area:                       PJU6A, Petaling Jaya

Developer:               Ong Chong Realty Sdn Bhd (http://www.ocr.com.my/index.asp)

Type:                       Condo

Tenure:                    Leasehold

Price range:              from RM400,900
Size range:               from 850 to 1,900 ft2

Price/ft2 range:        approx. RM472/ft2
Total Units:              300 units
Maintenance Fee:    RM0.25/ft2
*Above info @ April 2011 

You can get more info from following website:

http://www.iproperty.com.my/developments/developmentreview.aspx?pid=2054

http://www.youtube.com/watch?v=anyaoaIG13E (check this video for this development, very nice ^_*)

The developer: 
started business in 1989 (22 years in business) and majority of their developments are in PJ areas.

Location:

Not far away from KLCC. PJ is one of the prime location in Klang Valley, that's why the price is approx. 65% higher than Selayang or Puchong. You can check out my previous blogs for:

• 228 Selayang Condo (Aveda 228) @ Selayang(http://awonginvestment.blogspot.com/2011/09/228-selayang-condo-aveda-228-by-mahumas.html)

• Calisa M @ Puchong (http://awonginvestment.blogspot.com/search/label/Malaysia%20Properties)

The price/ft2 for the above two properties are approx. RM286/ft2.

Google Map

Map data ©2011 MapIT - Terms of U

Price:
This development price/ft2 is approx. 36% more than 8 Petaling @ Sri Petaling (http://awonginvestment.blogspot.com/2011/08/8-petaling-by-petaling-garden-sdn-bhd.html) which is slighty a bit further away from KLCC compare to this development.



My View:
RM472/ft2 is a bit steep to me. 

Based on 90% loan for RM400,900, say BLR6.6%-2.2% = 4.4% interest per annum, for 30 years. The monthly repayment is approx. RM1,806. If you are planning to buy & rent for investment, you need to take this into consideration. Will ppl willing to pay more than RM1,806 per month to rent a place in PJ?

Don't forget the approx. monthly repayment of RM1,806 excludes following items:
a) Maintenance fees
b) Assessment tax
c) Quit rent
d) Interest rates increased for the loan (this is the main risk as BLR still low at the moment)

To me I still believe the property prices in Klang Valley are too high at the moment and should collapse soon (maybe after 2012 election). Unless you are desperately to invest now, we shall keep more cash in hand for rainy days.

RM4.5billion school internet contract for 15 years on the bid

Malaysia government is looking for companies to provide internet access and a virtual learning module platform for about 10,000 schools in the country under the 1Bestarinet project.

The bid is split into 5 years contract each.

Currently only 6 companies are shortlisted for the 1st 5 years contract:

1) YTL Communications

2) Telekom Malaysia Bhd/Time dotCom Bhd (joint bid)

3) Celcom Axiata Bhd

4) Maxis Bhd

5) Multimedia Synergy Corp

Who will win??

1) YTL Communications
    (http://www.ytlcomms.my/EN/Index.aspx)

• YTL Communications is a subsidiary and the communications utility of YTL Power International
• YTL Power International is a subsidiary of YTL Corporation
• I sure most of the people in Malaysia know about YTL which is owned by, Tan Sri Dato' Seri (Dr.) Yeoh Tiong Lay, 6th richest guy in Malaysia net worth USD2.7billion and ranked 420 in the World Billionaires List provided by Forbes

2) Telekom Malaysia Bhd/Time dotCom Bhd (joint bid)

    (http://www.tm.com.my/Pages/Home.aspx) (http://www.time.com.my/)

• Both owned by M'sia government body
• Telekom Malaysia Bhd - approx. 12.58% owned by EPF
• Time dotCom Bhd - approx. 42.38% owned by Khazanah Nasional Bhd (you can read more about this company in my previous blog http://awonginvestment.blogspot.com/2011/08/timecom-share-to-look-at.html)

3) Celcom Axiata Bhd
    (http://www.celcom.com.my/)

• Celcom is a member of Axiata which listed in KLSE
• Is owned by M'sia government body
• Axiata - approx. 39.27% owned by Khazanah Nasional Bhd and 13.16% owned by EPF

4) Maxis Bhd
     (http://www.maxis.com.my/main.asp)

• Maxis Communications is part of Ananda Krishnan's business empire.
• 2nd richest guy in Malaysia net worth USD9.5billion and ranked 93 in the World Billionaires List provided by Forbes

5) Multimedia Synergy Corp

• Really no idea about this company. Never heard about it before and seems like can't find anything by searching through internet
• A black horse??

6) Jaring Communications
    (http://www.jaring.my/)

• Is owned by M'sia government body
• In December 2006, the Ministry of Finance, Malaysia officially takes over JARING
• Used to be famous 10 years ago......i'm sure many ppl heard about Jaring before 

Which company going to WIN?? Government bodies vs Billionaires??

If you have bought shares for these companies, this big WIN will definitely improve their company revenue + potential of share price shooting up!!

For me: I wish YTL Communications or Telekom Malaysia Bhd/Time dotCom Bhd to WIN. :)

228 Selayang Condo (Aveda 228) by Mahumas Sdn Bhd

 

Project name:           228 Selayang Condominium (Aveda 228)
Area:                       Selayang

Developer:               Mahumas Sdn Bhd (http://www.mahumas.com/)

Type:                       Condo

Tenure:                    Leasehold

Price range:             from RM275,000
Size range:              from 965ft2

Price/ft2 range:        RM285/ft2
Total Units:             219units
Maintenance Fee:    RM0.18/ft2

 

You can get more info from following website:

http://www.iproperty.com.my/developments/developmentreview.aspx?pid=2118

The developer: is a small company started business in 1997 (14 years in business). I never heard about this company before but seems like most of their developments are in Rawang and this is the first development outside Rawang.

Location: Quite far away from KLCC. Distance from KLCC is about the same as Puchong, that why the price is similar to Calisa M @ Puchong (http://awonginvestment.blogspot.com/search/label/Malaysia%20Properties) which I have blogged about it recently. The price/ft2 for Calisa M @ Puchong from approx. RM286/ft2.

http://maps.google.com.qa/maps?hl=en&tab=wl 


Price: gone up significantly since 2008, almost 82%, as follows:

Symphony Heights @ Selayang by Daya Niaga Sdn Bhd http://www.huayang.com.my/

• Phase 1 selling starting from RM157/ft2 [info @ Jun 2008]
• Phase 3 (Final Phase) selling starting from RM236/ft2 [info @ May 2009] 

My View:

82% increased in price for Selayang areas within 3 years is a bit crazy. Don't you think so? If you look at Symphony Heights, after 1 year they launched Phase 3 which price is 50% more than Phase 1. Now 228 Selayang Condo launched with approx. 82% more expensive compare to Phase 1 of Symphony Heights which launched 3 years ago (average 27% increased per year).

Another point is how come average increased drop?? Shouldn't it be 50%? I think this might be due to the high price and less & less buyers nowadays.

One of the advantage for this development is that it only has 228 units (including 9 units of 2 storey Villas) compare to Symphony Heights which has 946 units. If you want to sell it fast in the future, you might consider for a development with less units.

Based on 90% loan for RM275,000, say BLR6.6%-2.2% = 4.4% interest per annum, for 30 years. The monthly repayment is approx. RM1,239. If you are planning to buy & rent for investment, you need to take this into consideration. Will ppl willing to pay more than RM1,239 per month to rent a place in Selayang?

To me I still believe the property prices in Klang Valley are too high at the moment and should collapse soon (maybe after 2012 election). Unless you are desperately to invest now, we shall keep more cash in hand for rainy days.