Celebrating top developers

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S P Setia Bhd has been ranked the No 1 developer in Malaysia in The Edge Top Property Developers Awards (TPDA) 2011, marking its sixth appearance at the top. The developer was No 1 in the annual rankings from 2005 to 2008 and in 2010.

The TPDA ranks developers in Malaysia from the consumers’ perspective based on the developers’ quantitative and qualitative attributes. This is the ninth year of the TPDA.

The developer of the 2,525-acre (1,010ha) Setia Alam township and eco-themed Setia Eco Park in Shah Alam also came in first in the qualitative sub-ranking this year.

Currently in the spotlight after receiving a takeover offer from Permodalan Nasional Bhd (PNB), S P Setia is developing the 240-acre Setia City commercial precinct in Setia Alam and preparing to launch projects including Seti Eco Glades in Cyberjaya, KL Eco City in Bangsar and Setia Eco Cascadia in Johor. It recently announced that it is acquiring another site in Melbourne following good take-ups for Fulton Lane, its maiden project there.

Sime Darby Property Bhd and Sunway City Bhd (now known as Sunway Bhd following a merger with Sunway Holdings Bhd) also retained their second and third positions this year.

The non-listed property division of Sime Darby Bhd retained its No 6 position in the qualitative standings and first in the quantitative ranking with the largest shareholders’ funds and highest turnover (RM1.812 billion) in FY10.

Known for townships such as Subang Jaya, Ara Damansara and Bukit Jelutong, the developer has been launching high-end homes in its townships, including Seri Pilmoor in Ara Damansara and The Glades in Putra Heights. Slated for launch this year is an affordable housing township in Negri Sembilan. Future developments include the Bukit Jelutong Commercial Centre with an estimated gross development value (GDV) of RM3.2 billion and projects in Sime Darby Vision Valley (SDVV). SDVV stretches from Kuala Selangor to Seremban and Port Dickson.

In third place for the fourth consecutive year is Sunway City. The developer of Sunway Integrated Resort City and Sunway City Ipoh has recently launched the 22-acre integrated development Sunway Velocity in Cheras and Sunway Rymba Hills in Sunway Damansara. Upcoming is the 25-storey The Pinnacle office tower in Bandar Sunway while in China, it is developing 102 acres of the 7,400-acre Sino-Singapore Tianjin Eco-City project. With the merger, the listed Sunway Bhd now has a total assets of over RM7 billion and a landbank of close to 2,200 acres with a potential GDV of about RM23 billion.

Chor (ninth from left) flanked by Abdul Wahid (eighth from left) and Tan with winners and judges of the various awards.

Coming in fourth is the developer of Mid Valley City in Kuala Lumpur — IGB Corp Bhd which is preparing to launch the last phase of Mid Valley City comprising offices. The group’s property investment and management division is the main contributor to revenue bringing in RM425.8 million in FY10. IGB is also expanding its St Giles and Cititel hotel brands. Currently at 3,523, the local room inventory is expected to increase to 4,531 in 2013.

I & P Group Sdn Bhd took fifth place, rising two notches from last year. A PNB unit, I & P emerged two years ago from a rationalisation exercise of three companies, namely Island & Peninsular Bhd, Petaling Garden Bhd and Pelangi Bhd. Its Bandar Kinrara township in Puchong won The Edge-PEPS Value Creation Excellence Award in the residential category this year and last year. The developer is working on various phases of development in its 12 townships, including in Bandar Kinrara, Bandar Baru Sri Petaling, Alam Impian, Alam Damai in the Klang Valley and Taman Rinting and Taman Perling in Johor. The group has a total landbank of about 2,200ha in the Klang Valley and Johor.

Retaining its No 6 spot in the TPDA 2011 is IOI Properties Bhd, the developer of Bandar Puteri Puchong, IOI Resort City in Putrajaya and 16 Sierra near Dengkil. It has recently embarked on one of its most iconic projects to date — the IOI City Development in IOI Resort City that comprises a two million sq ft shopping mall, two office blocks, a hotel and serviced residences. The property division of plantation giant IOI Corp saw revenue exceeding RM1 billion in FY10 on strong sales and higher pricing. It is preparing to launch its third project in Singapore following encouraging sales for its Seascape condo in Sentosa Cove and Cityscape @ Mergui Road. The group is also drawing up plans for a 7.7-acre site in Xiamen, Fujian province in China.

Mah Sing Group Bhd is ranked seventh this year, after making its debut among the top 10 of the TPDA in ninth place last year. It showed marked improvement in the qualitative standing coming in fourth. In FY10, Mah Sing breached the RM1 billion sales mark, registering RM1.5 billion. The developer, known for its quick turnaround strategies, has been aggressively acquiring land for a mixed portfolio of products. Among recent notable launches are Garden Residence in Cyberjaya, M-Suites @Jalan Ampang, [email protected] in Batu Maung, Penang, i-Parc @ Bukit Jelutong and Star [email protected]’sara.

Coming in eighth this year is Sunrise Bhd. Although it voluntarily delisted on Jan 21 this year and is now part of UEM Land Holdings Bhd following a corporate exercise, Sunrise released an annual report for FY10 while still listed in the property sector. Hence, it was automatically considered for this year’s TPDA.

Its latest unbilled sales for 28 Mont’Kiara (MK28), Quintet in Richmond, Vancouver, and Summer Suites (formerly Menara Solaris) in Jalan Sultan Ismail, Kuala Lumpur, are said to be around RM1.2 billion. Slated for launch next are Arcoris (MK20) and MK22 in Mont’Kiara while the mixed-use development on the Wisma Angkasa Raya site in KLCC and in Bukit Jelutong are also in the works.

Moving up a notch to ninth this year is IJM Corp Bhd’s listed property arm IJM Land Bhd — the result of a merger between RB Land Holdings Bhd and IJM Properties Sdn Bhd. From townships such as Seremban 2 and Shah Alam 2 to luxury high-rises such as Ampersand @Kia Peng to iconic developments such as The Light waterfront development in Penang, the developer boasts a variety of projects in various locations throughout the country. It achieved an impressive third place in the qualitative ranking.

Rounding up the Top 10 in the TPDA 2011 is Bandar Raya Developments Bhd (BRDB). It made the news recently for its decision to sell its prime assets, including Bangsar Shopping Centre, Menara BRDB, CapSquare Retail Centre in Kuala Lumpur and Permas Jusco Mall in Johor Bahru.

Besides these assets, BRDB is known for its luxury lifestyle developments, including One Menerung in Bangsar and the Foster & Partners-designed Troika in Kuala Lumpur. Its latest launch is Verdana at Kiara North in Dutamas, setting benchmarks in the location for condo design, quality and pricing.

The TPDA ranking is based on a developer’s FY10 results. Data on the quantitative attributes of listed companies in the property sector of Bursa Malaysia is derived from published sources compiled by Interactive Data Systems Sdn Bhd while unlisted companies are required to submit copies of signed audited accounts. The four quantitative attributes are shareholders’ funds, group pre-tax profit, revenue and net gearing. Since last year, greater weightage has been given to qualitative attributes (65%), namely product quality, innovation and creativity, value creation for buyers, image and expertise. The qualitative attributes were judged by veteran property developers Datuk Alan Tong, Datuk Richard Fong, Datuk Jeffery Ng, Datuk Teo Chiang Kok, Kumar Tharmalingam, Datuk Eddy Chen and The Edge chief marketing officer Au Foong Yee. The results were audited by Deloitte Malaysia.

The captains of the Top 10 companies received their award certificates from Housing and Local Government Minister Datuk Wira Chor Chee Heung at The Edge Property Excellence Awards night last Thursday. Also present was The Edge Communications Sdn Bhd managing director Tan Boon Kean, awards sponsor Malayan Banking Bhd’s (Maybank) president and CEO Datuk Seri Abdul Wahid Omar and supporting sponsor Malaysia Property Inc’s (MPI) CEO Kumar Tharmalingam. Green Excellence and Value Creation Excellence winnersWinners of The Edge-PEPS Value Creation Excellence Award 2011 and The Edge-PAM Green Excellence Award 2011 also received their awards that night.

The winner of The Edge-PAM Green Excellence Award 2011 was 1 First Avenue, a green office building developed by Bandar Utama City Sdn Bhd in Bandar Utama. The judges this year were Malaysian Institute of Architects (PAM) immediate past president Boon Che Wee, PAM president Saifuddin Ahmad, Green Building Index accreditation panel member Serina Hijjas, The Edge chief marketing officer Au Foong Yee and The Edge deputy editor of City & Country and haven Sharon Kam.

The awards, initiated in collaboration with PAM, recognises projects that demonstrate sustainable design innovation while contributing to the community.

Meanwhile, I & P Group Sdn Bhd’s Bandar Kinrara township in Puchong bags The Edge-PEPS Value Creation Excellence Award again in the residential category with another phase — the 2-storey Desiran homes in Phase B41. This award was initiated last year in collaboration with the Association of Valuers, Property Managers, Estate Agents and Property Consultants (PEPS) to recognise property developments with outstanding capital appreciation. The judges this year were PEPS president Choy Yue Kwong, PEPS immediate past president James Wong, PEPS member Foo Gee Jen, Au and Kam.
This article appeared in The Edge Financial Daily, October 3, 2011.