The winner’s circle

This has been an eventful year for The Edge Malaysia Property Excellence Awards (TEPEA). The turbulence in the property market shook up the rankings — with some interesting results — and new and revamped award categories to recognise the larger-than-life personalities and outsized developments that have shaped the sector kept things fresh and exciting as TEPEA entered its 13th year.

The awards gala night was held on Nov 30 at the Mandarin Oriental in Kuala Lumpur and more than 300 of real estate’s biggest players and experts came together to celebrate the industry’s best and brightest stars.

Sunway Bhd reprised its winning performance for the second straight year, taking home the coveted top prize in The Edge Malaysia Top Property Developers Awards (TPDA) — the anchor for TEPEA — and the Best in Qualitative Attributes sub-award.

The developer seems to have emerged from the last two recessions stronger and wiser. Its gearing ratio is at a tolerable 0.3 times and it is in a position to acquire prime distressed assets.

The group made a net profit of RM734 million on revenue of RM4.56 billion in its financial year ended Dec 31, 2014 (FY2014). In comparison, net profit and revenue in the previous year stood at RM1.5 billion and RM4.72 billion respectively. The company’s dividend payout ratio for FY2014 was 23.5% versus 12% in FY2013. It also recently rewarded its shareholders at group level with a special dividend of 26 sen per share.

“We are very honoured to be recognised yet again and we thank all our stakeholders and customers who believe in us. We will continue to deliver quality products,” said Sarena Cheah, managing director of Sunway’s property division for Malaysia and Singapore, after receiving the award.

She added that she will celebrate the twin triumphs with her team, who she credited with continuing to inspire her.

In recent years, TEPEA has expanded to include various sub-awards, including The Edge Malaysia-PEPS Value Creation Excellence Award, The Edge Malaysia-PAM Green Excellence Award, The Edge Malaysia Affordable Urban Housing Excellence Award and The Edge Malaysia Notable Property Achievement Award.

New additions are The Edge Malaysia Lifetime Property Achievement Award and The Edge Malaysia Outstanding Property CEO Award.
Sub-awards that were renamed are The Edge Malaysia Outstanding Property Entrepreneur Award (formerly The Edge Malaysia Outstanding Property Personality Award) and The Edge Malaysia Property Development Excellence Award (formerly The Edge Malaysia Outstanding Property Project Award).

Companies listed under properties on Bursa Malaysia are automatically in the running for the TPDA while seven unlisted developers submitted their financials to qualify.

Judges who abstained from qualitative scoring were Tan Sri Eddy Chen for MKH Bhd, Datuk Seri Michael Yam for Sunway Bhd and Paramount Corp Bhd, Datuk Jeffrey Ng for Sunway and Datuk Soam Heng Choon for IJM Land.

The Edge Malaysia-PEPS Value Creation Excellence Awards drew 13 entries this year.

Simply the best

“Condo King” Datuk Alan Tong Kok Mau, the founder of Sunrise Bhd and current chairman of Bukit Kiara Properties Sdn Bhd, was the proud recipient of the inaugural The Edge Malaysia Lifetime Property Achievement Award.

The spry octogenarian is revered in the real estate circles for his integrity, foresight and gumption in transforming a rubber estate in Segambut into Mont’Kiara, an international high-rise enclave.

“I am quite speechless,” said a beaming Tong. “This award was completely unexpected.”

He attributed his success to the principles instilled in him by his father. “Be someone people are proud to say they work with,” he said.

The Edge Malaysia Outstanding Property Entrepreneur Award was shared by Tropicana Corp Bhd founder and adviser Tan Sri Danny Tan and Mah Sing Group Bhd group managing director Tan Sri Leong Hoy Kum.

Tan, whose various ventures in sales ultimately led him to real estate, spent over 23 years building Tropicana into one of the nation’s top property developers, whose stable includes its flagship 625-acre Tropicana Golf & Country Resort in Petaling Jaya and a host of other multibillion-ringgit projects, such as the 863-acre Tropicana Aman (RM13 billion), 199-acre Tropicana Heights (RM2.18 billion), and 88-acre integrated development Tropicana Metropark (RM7.2 billion).

Leong was recognised for his business acumen in leading his company’s diversification drive — first into plastic manufacturing in 1986 and then into property in 1994.

With his can-do attitude, the group’s initial three multimillion-ringgit projects have become 46 projects across the country with a remaining gross development value (GDV) of RM26.4 billion. These include the Meridin East township in Johor Bahru (RM5 billion) and Ferringhi Residences Phase 2C (RM735 million).

The Edge Malaysia Outstanding Property CEO Award was conferred on Eco World Development Group Bhd president and CEO Datuk Chang Khim Wah and Sime Darby Property Bhd managing director Tan Sri Abd Wahab Maskan.

In the TPDA, IJM Land vaulted from 14th place last year to second place this year, marking the developer’s return to the Top 10 list after a two-year hiatus. It was last in 10th spot.

In its financial year ended March 31, 2015 (FY2015), the developer’s revenue dropped to RM2.203 billion from RM2.224 billion a year ago. Property sales stood at RM1.8 billion compared with RM2.9 billion a year ago — including RM700 million from its maiden London venture Royal Mint Gardens.
IJM Land also took home The Edge Malaysia Notable Property Achievement Award for its 152-acre coastal integrated development The Light Waterfront in Penang.

Sime Darby Property, meanwhile, dropped one place to No 3. In FY2014 ended June 30, it achieved gross sales of RM2.1 billion with 1,659 units sold that comprised new supply and existing stock. The group plans to raise its sales target for its current financial year to
RM3.6 billion from about 4,626 units.

The developer’s Saron in Bandar Bukit Raja won The Edge Malaysia Affordable Urban Housing Excellence Award.

S P Setia Bhd slipped one spot to No 4. The group saw its best financial performance yet with its third-quarter revenue surging to RM1.63 billion while profit before tax came in at RM406.3 million.

Total sales for the first nine months of its current financial year ended July 31 amounted to RM2.54 billion while unbilled sales were RM9.9 billion as at Sept 30.

S P Setia took home The Edge Malaysia-PAM Green Excellence Award for its corporate headquarters in Setia Alam and The Edge Malaysia Notable Property Achievement Award for its 791-acre Setia Eco Park in Shah Alam.

Mah Sing Group rose four places to No 5. The group posted revenue of about RM1.6 billion and net profit of RM189.4 million for the six months ended June 30 — up 16.1% and 10.8% respectively from the same quarter in the previous year. Unbilled sales stood at RM4.8 billion.

Also returning to the Top 10 was UOA Development Bhd (No 6), the development arm of UOA Group. The developer, listed on Bursa with a market capitalisation of RM3.1 billion in June 2011, is one of the largest property developers in the country.

Its upcoming projects include an integrated development on 30 acres in Jalan Ipoh, Kuala Lumpur, modelled after Bangsar South and boasting a GDV in excess of RM6 billion, a 10-acre mixed-use development in Kepong with a GDV of over RM1.5 billion and a nine-acre mixed-use development in Sentul worth RM1.5 billion.

UEM Sunrise Bhd dropped three places to No 7 this year. The development arm of UEM Group Bhd has total assets worth over RM5 billion and owns sizeable tracts of land in Johor. It is the master developer of the 4,551-acre Nusajaya, one of the five flagship zones in Iskandar Malaysia. Some catalytic projects coming up there include Nusajaya Tech Park, Motorsports City, Signature Residences and Gerbang Nusantara.

IOI Properties moved up two spots to No 8 this year. The property development arm of IOI Group had a momentous year, opening the largest shopping mall in southern Klang Valley — IOI City Mall — near Putrajaya and Four Points by Sheraton Puchong, a partnership with Starwood Hotels and Resorts, at the Puchong Financial Corporate Centre in Bandar Puteri Puchong.

The group owns 10,000 acres in Malaysia and abroad and is making its presence felt in Xiamen, China.
IGB Corp Bhd dropped to ninth spot this year from eighth. The developer has residential, retail, commercial and hospitality projects here and overseas, most notably its iconic Mid Valley City in Kuala Lumpur — home to Mid Valley Megamall and The Gardens Mall — and the St Giles brand of hotels in Penang, Sydney, London, New York and the Philippines.

Gamuda Bhd’s property division Gamuda Land fell five places to No 10. The group sold an impressive RM1.5 billion worth of properties in its financial year ended July 31, mostly at its Gamuda City and Celadon City projects in Hanoi and Ho Chi Minh City in Vietnam. Currently, the group has 3,332 acres of undeveloped land at home and 571 acres abroad.

The developer took home the The Edge Malaysia Property Development Excellence Award for its flagship Kota Kemuning township in Shah Alam and The Edge Malaysia-PEPS Value Creation Excellence Award in the residential category for Phase 15 of Ambang Botanic in Bandar Botanic, Klang.

Gamuda Land’s flagship township in Shah Alam was recognised for its green and tranquil environment underpinned by good engineering and planning.
Kota Kemuning and Perdana ParkCity Sdn Bhd’s Desa ParkCity jointly won The Edge Malaysia Property Development Excellence Award in recognition of their positive contribution to the vibrancy of the surrounding areas.

Tropicana, which had debuted in the Top 10 list at No 6 last year, fell to No 11 this year while Eastern & Oriental Bhd, which was in eighth place last year, was ranked 12th this year.

The Edge Malaysia-PEPS Value Creation Excellence Award’s non-residential winner was TA Global Bhd’s Ativo Plaza in Bandar Sri Damansara, Kepong, Kuala Lumpur, while the merit award went to The Z Residence by Trinity Group Bhd, a familiar name in this category.

The Edge Malaysia Notable Property Achievement Award went to Mulpha International Bhd’s Leisure Farm in Johor. The project is one of the pioneers of luxurious landscaped precincts with security and top-notch facilities.

MKH Bhd’s Pines @ Hillpark Shah Alam North project won The Edge Malaysia Affordable Urban Housing Excellence Award this year The developer had won the award when it was introduced last year for its Pelangi Semenyih 2 (Phase 2A) project. TEPEA 2015

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This article first appeared in City & Country, a pullout of The Edge Malaysia Weekly, on Dec 7, 2015. Subscribe here for your personal copy.