Industry awaiting RFP for Track 4 plants

By Sharen Kaur

KUALA LUMPUR: The Energy Commission has yet to issue a request for proposal (RFP) notice to build new power plants under the so-called Track 4, fuelling speculation that it may pursue direct negotiations for the projects instead of competitive bidding.

 Two coal-fired power plants, coded Track 4A and 4B, are in the works following the recent award of Track 3B contract to 1Malaysia Development Bhd (1MDB) to build a 2,000-megawatt (MW) power plant for an estimated RM11 billion.

  Business Times understands that construction of Track 4A and 4B are expected to begin in June next year at a cost of between RM8 billion and RM10 billion and have combined capacity of about 2,000MW.

 An industry source said the notice should have been issued by now as the process from RFP to award and then start of construction might take more than a year to complete.

  The industry, he said, had earlier expected the RFP to be issued on Monday.

 "The perceived delay in issuing the RFP notice for Track 4 has raised concerns that the contracts may be awarded on a direct negotiation basis. It looks like the commission is going back to the old style of awarding contracts for power plants," a source said.

   Prior to 2012, power generation licences were issued through direct negotiations, a process that some critics said did not ensure selection of the most cost-efficient proposal.

  The commission subsequently decided to open up the bidding process.

 The first gas-fired power plant in Prai, Penang, coded Track 1, was awarded under competitive bidding to Tenaga Nasional Bhd (TNB), following its proposal to sell electricity at 34.7 sen per kWh, which was the lowest price.

  The commission has so far awarded contracts to build four power plants, namely Track 1, 2, 3A and 3B through the competitive bidding process.

  Track 3B's 2,000MW coal-fired power plant project attracted four bidders - YTL Power International Bhd, 1MDB, Malakoff Corp Bhd and TNB.

 1MDB won the bid because of its "most competitive" proposal,  ahead of closest rival YTL Power, which was said to have offered the lowest price.

 It was reported that YTL Power did not meet the commission's requirement for the Track 3B power plant to be based on proven ultra supercritical or supercritical technology.
 

MAHB plans catalytic projects at KLIA Aeropolis

By Sharen Kaur
Published in NST on April 30, 2014

DIVERSIFIED AIRPORT CITY: Mega development includes cargo and logistics hub, commercial business district, a theme park

MALAYSIA Airports Holdings Bhd (MAHB) is planning catalytic projects at KLIA Aeropolis here, which will spur domestic and foreign investments in the multi-billion ringgit development.

More than 2,428ha of the 8,966ha KLIA Aeropolis has been developed, while the undeveloped area is planted with oil palm trees.

The development is located about six kilometers from the Kuala Lumpur International Airport (KLIA) and the Kuala Lumpur International Airport 2 (klia2).

MAHB senior general manager of planning, Mohd Khair Mirza, said several catalytic projects are at planning stages, including a cargo and logistics hub, a commercial business district and a theme park.

“KLIA Aeropolis is a mega development and we have interested parties who want to invest in it. We are talking to them,” he said on the sidelines of the ground-breaking of Mitsui Outlet Park KLIA, here, yesterday.

Mohd Khair had earlier said about 1,000ha has been reserved for the theme park and the size suits Disneyland, whose operator is looking for a site to expand in this region.

KLIA Aeropolis will also feature a free commercial zone, a centre for meetings, incentives, conventions and exhibitions, hotels, natural conservation and green tourism zones, which will be completed within the next five to 10 years.

Mohd Khair said KLIA Aeropolis, when completed, will help increase MAHB’s non-aeronautical revenue and net profit contribution to between 60 per cent and 70 per cent. 

Currently, non-aeronautical businesses contribute more than 50 per cent to the national airport operator’s revenue and net profit.

For fiscal year 2013, MAHB, which manages 39 airports in Malaysia and overseas, posted a net profit of RM388.93 million on revenue of RM4.09 billion.

MAHB chairman Tan Sri Dr Wan Abdul Aziz Wan Abdullah said that KLIA Aeropolis will spark growth for the company, KLIA, klia2, retailers and aviation companies.

“Our vision is to transform KLIA into a diversified airport city with significant business, tourism and employment opportunities,” he said.

He added the encouraging growth in passenger movements augurs well for the KLIA Aeropolis vision, whose critical returns, among others,  is the opportunity to expand the group’s non-aeronautical base, in line with its 2010-2014 business direction.

Avani Sepang - Fun and relaxing getaway

By Sharen Kaur
Published in Travel Times, NST on April 17, 2014

For a great family outing or just to de-stress, there’s Avani Sepang Goldcoast Resort, writes Sharen Kaur

I HATE driving to Sepang because of the scorching sun and haze but when there’s a night’s stay at the newly re-branded Avani Sepang Goldcoast Resort at the end of the journey, I just can’t resist it!

Travellers have been raving about the resort which is located on the Selangor coast near Sepang International Circuit — home to the Formula 1 Grand Prix — and a 45-minute drive from Kuala Lumpur International Airport.

I set out at 8.30am from KL and arrive at the resort 90 minutes later.

It is a long drive but scenic after I pass the Sepang International Circuit as the route takes me through beautiful countryside of hills and kampung houses.

Along the way, I wonder what the resort looks like now that it has been re-launched under the Avani flag following the completion of the first of two phases of a RM15 million refurbishment programme.

Thailand-based Minor Hotel Group owns the Avani brand and renamed the property. It was formerly known as Golden Palm Tree Iconic Resort & Spa.

As I walk into the lobby to check-in, I am awed by the beautiful settings. The resort comprises sea villas set in the shape of a palm tree, spreading out over the sheltered waters of the Strait Of Malacca.

Without wasting time. I get my key and head for the one-bedroom villa that sits on the trunk of the “palm”. I place my luggage inside the room and change into something more comfortable to enjoy the facilities.

Then I grab a bicycle for moving around and get a better picture of the place. The resort has over 400 bicycles for the complimentary use of its guests.

Grab a bicycle and cycle around the neighbouring kampung.

I am also hungry and thirsty, so I head for Sepoi-Sepoi restaurant which serves local and western food.

After lunch I go to the beach to enjoy the breeze and watch activities ranging from sailing, kayaking, canoeing and windsurfing to beach soccer and sand painting for the younger kids. And it’s all complimentary.

Sunset at the five-star resort reflects the intimacy and natural beauty of the Sepang coastline.

Stunning sunset adds romance to the Polynesian-inspired water chalets.

My day isn’t ended yet but already, I am convinced that Avani Sepang Goldcoast Resort is perfect for eco-adventure, family-friendly fun and a relaxing getaway.

FAST FACTS

HOTEL
Avani Sepang Goldcoast Resort (formerly Golden Palm Tree Iconic Resort & Spa)

GETTING THERE
Use the Maju Expressway and head towards LCCT Sepang. Turn left at the traffic lights before the Sepang International Circuit. Follow signboards from there.

MAIN ATTRACTION
Polynesian-inspired water chalets

FIRST IMPRESSION
Nice and cosy

ROOMS
392 contemporary Polynesian-inspired one-, two- and three-bedroom villas built on stilts with Balinese-inspired alang-alang roofing.

F&B OUTLETS
Nine outlets that can do better

OVERALL SERVICE
Within expectations

PLACES WITHIN WALKING DISTANCE
Bagan Lalang beach, homestays, seafood restaurants. Nearby attractions include Sepang Goldcoast Environment Interpretive Centre (Malaysia Nature Society), Sepang Riverine Mangroves Sanctuary and Wetlands, Orang Asli settlement and handicrafts centre.
 

Avani Sepang Goldcoast Resort is a perfect retreat to de-stress.

  

New Pullman head upbeat revenue will grow by 5-8pc

By Sharen Kaur
Published in NST on April 28, 2014

KUALA LUMPUR: The new head of Pullman Kuala Lumpur Bangsar is upbeat the hotel will break even on a revenue of RM50 million in its first year of operation.

“It is a tough target, and it is given to motivate and drive the team,” said Eric Tan, the hotel general manager who came on board last month.

Tan told Business Times recently he is upbeat that revenue will also grow by between five and eight per cent on a yearly basis.

Pullman Bangsar, which is the Accor Group’s largest hotel in Southeast Asia by rooms, started operations five months ago.

The hotel has 513 rooms but only 350 are open at the moment. Based on that count, the hotel’s occupancy is at 60 per cent.

Tan has no qualms of achieving 50 to 55 per cent occupancy once all the rooms are opened and to raise that to over 65 per cent from the third year of operation.

He said the light rail transit (LRT) line extension and MRT projects, and the KL Sentral transport hub in Brickfields, which is linked to the Kuala Lumpur International Airport and the Kuala Lumpur International Airport 2 will help the hotel to grow.

“Many people see this area as very secluded and not central but I take it as a plus point. If you look at the city hotels, their location is quite congested because of the on-going LRT and MRT works.

“That is a plus point for us as many local and foreign leisure travellers are now coming over to this side. We have a LRT station within walking distance from the hotel, which is connected to KL Sentral, and it is attracting a lot of corporate and MICE business for us.”

Meanwhile, Tan said the building owner, Cygal Development Sdn Bhd, will invest between US$4 million and US$5 million (RM13 million and RM16 million) to improve the facade and open two new outlets.

“We are adding two iconic outlets, including a Skybar on the 28th floor. All these improvements will be completed by the first or second quarter of next year,” Tan said.

Accor, which is a French hotel operator, is managing and operating Pullman Bangsar for Cygal Development.

It also manages seven other properties in Malaysia, including Pullman Putrajaya Lakeside, Pullman Kuching, Novotel Kuala Lumpur City Centre and ibis Styles Kuala Lumpur Cheras hotel.

KSK taps Kempinski for Conlay project

By Sharen Kaur
Published in NST on April 16, 2014

KUALA LUMPUR: KSK Group Bhd will bring Europe's oldest luxury hotel outfit, Kempinski, to its RM4 billion Jalan Conlay project, here, adding another opulent accommodation to the city, said sources.

    Formerly known as Kurnia Asia Bhd, the group is developing a mixed-use project on a 1.6ha site in Jalan Conlay, next to Prince Hotel & Residence.

    KSK acquired the land for RM568 million from Suasana Simfoni Sdn Bhd in a deal that was completed last month.

    The project will be developed by its subsidiary, KSK Land Sdn Bhd, and  will feature three towers and a 200,000 sq ft retail podium.

   The sources said the tallest tower is 60-storey high and will house the five-star hotel and serviced apartments, which are expected to be managed by Kempinski.

    The other two blocks, standing at 50 and 55 storeys each, will comprise luxury condominiums.

     According to the sources, KSK had considered either Kempinski and Nevada-based gaming and hospitality company, MGM Resorts International, to manage the hotel and serviced residences.

     Kempinski is an international hotel chain founded in Berlin, Germany, in 1897.

     It is majority controlled by Thailand's Crown Property Bureau, a Royal Thailand authority responsible for administering the properties of the Royal House of Thailand.

    Kempinski operates around 80 historic grand hotels, city hotels, resorts and residences in 30 countries in Europe, the Middle East, Africa and Asia.

    KSK Land  will develop the Conlay project starting year-end. The project is slated to be completed by 2020.

     "KSK Land will also launch the condominiums by year-end. No price is fixed yet, but it will surely be above RM2,500 per sq ft.

    "There will be competition from Banyan Tree residences and Harrods Hotel, which are also under construction in Jalan Conlay.  KSK Land, however, is bullish on property sales and is targeting 50 per cent local investors," the sources said.

      The KSK group is expected to use part of the RM1.63 billion obtained from the sale of its core insurance business, Kurnia Insurans (M) Bhd, to AmG Insurance Bhd in September 2012, to fund the project's initial stage.

     The group, which currently focuses on growing its two general insurance operations in Indonesia and Thailand,  ventured into property development last year.

‘No concrete plan for Mutiara Beach Resort’

By Sharen Kaur
Published in NST on April 14, 2014

25-YEAR-OLD PROPERTY: Tradewinds focusing on mega projects in Langkawi, KL

TRADEWINDS Corp Bhd, may only look at redevelopment plans for Mutiara Beach Resort in Penang next year, said a key official.

“We have too much on our plate to start planning now, with two major ongoing projects in Langkawi and the large developments in Kuala Lumpur. We are focusing on these mega projects,” the official said.

According to him, the Penang resort project has not reached the drawing board and there is no concrete plan as to what the company may want to do there. 

“Of course, the best thing is to have more rooms so that there will be a good return on investment. Whether we sell the property or not would depend on the market situation and the offers,” he said.

The 25-year-old property, which is located on 4.05ha in Jalan Teluk Bahang, has been closed since 2006.  There were earlier plans to renovate and rebrand the property as InterContinental Resort Penang.

However, both Tradewinds and InterContinental mutually terminated the management contract in early 2009.

Tradewinds, which owns eight hotels and resorts, is developing the RM4 billion Perdana Quay and the Burau in Langkawi for RM420 million.

In Kuala Lumpur, Tradewinds' existing projects include the upgrading of Menara Tun Razak and the development of Tradewinds Centre in Jalan Sultan Ismail, both of which are projected to cost more than RM4 billion.

The group is demolishing the 40-year-old Crowne Plaza Mutiara Hotel and 33-year-old Kompleks Antarabangsa to make way for the Tradewinds Centre, which has an estimated gross development value of more than RM7 billion.

Tradewinds has said it will redevelop the 2.8ha site on its own over seven years.

The project will comprise a 65-floor skyscraper and 54-storey bloc of residences, Grade A+ offices, a 24-storey corporate block, a large-scale 14-storey medical centre, retail offices, serviced apartments and hotel.

At Menara Tun Razak, Tradewinds is upgrading the 35-storey office tower and constructing a new 40-storey office tower adjacent to it.

“Tradewinds’ financial results will improve tremendously from next year as property sales from some of the projects start to kick in,” the official said.

Its last financial results for the six months ended June 30, 2013, showed that it made RM75.44 million in net profit from RM474.57 million in revenue.  Its total assets stood at RM3.6 billion.

The 25-year-old Mutiara Beach Resort in Penang has been closed since 2006.

TREC set to make its mark in Kuala Lumpur

By Sharen Kaur

NEW CONCEPT: Avant City plans international tenant mix for RM400m entertainment hub

THE RM400 million TREC entertainment hub here will change the city's night life, and provide a boost to the tourism sector and local economy.

Developed by Avant City Sdn Bhd, TREC will open in the third quarter of next year and would be comparable to Singapore's Clark Quay, Hong Kong's LanKwai Fong and Shanghai's Xin TianDi. It will be developed on a 2.83ha site at the Royal Selangor Golf Club (RSGC).

                   Electric Boulevard - set to be one of the world’s most exciting night-time destinations

                                              TREC’s ground-breaking concept and design

It will feature front-row views over the spectacular greens of the golf course in Jalan Tun Razak and sit directly opposite the billion-ringgit Tun Razak Exchange. 

                                                        Dining with a view of the golf course

Avanti City, which is owned by Daman Land Sdn Bhd (35 per cent), Modern Falcon Sdn Bhd (35 per cent) and Berjaya Assets Bhd (30 per cent), has leased the land for 30 years.

The coming together of these companies will ensure that TREC is sustainable, and it would provide a new destination for local and international clubbing and dining enthusiasts.

Daman Land is controlled by Datuk Douglas Cheng and his father Tan Sri David Cheng. They own several outlets and clubs, including the Dragon-i and Canton-i Chinese restaurants.

Modern Falcon is run by Cher Ng, the co-founder of Zouk KL, and his business partners. Berjaya Assets is the developer of Berjaya Times Square in Jalan Imbi, here.

"The idea for TREC came from Ng, who had to relocate Zouk KL from its present location in Jalan Ampang. We saw the piece of land at the golf course and decided to set up TREC there.

"The project will cost RM152 million and funded via equity by the three parties," the younger Cheng told Business Times.

TREC, comprising five unique zones, will have a net lettable area of 256,000 sq ft and the anchor will be the new Zouk KL.

"We are talking to club owners in the United Kingdom and restaurant operators in Indonesia, Thailand and Singapore to lease the space for between RM10 and RM12 per sq ft.

"We want a good tenant mix for TREC. We are looking for new concepts and don't want what is already in Kuala Lumpur. I am very bullish TREC will be fully taken up before its opening next year," he said.