ISSUE 5, JAN/FEB 2013

In This Issue:

What Does The Snake Year Hold For The Residential Property Market In The Klang Valley? ...Page 1

Klang Valley O�ce Sector Review...Page 5

Klang Valley Retail Sector Review...Page 9

Upcoming Events in March & April 2013...Page 15

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After the blistering and alarming speed at which residential property prices escalated in the years of the tiger (2010) and rabbit (2011), the property market in Malaysia began to show some signs of cooling off in the year of the dragon (2012), after being reined in by several measures introduced by the Malaysian government to head off a potential asset bubble which could be damaging to the economy. These measures included a 70% cap on loans taken after the second mortgage, an increase in the real property gains tax rate to 15% for those who sell within 2 years of purchasing the property and requiring banks to compute loan eligibility based on net income. This last measure in particular, resulted in a significantly higher rate of withdrawals by buyers after they found out that they can only qualify for a smaller quantum of loan. The other factor which may also have played a part in purchasers consciously adopting a wait and see attitude is the uncertainty caused by the long awaited general elections (GE 13). Despite all these, the property market still closed off 2012 on a positive note, with an expected increase in the number as well as value of transactions. The rate of increase in residential prices however, would have eased off from the pace of the preceding two years. Now that we have sneaked into the snake year, what will be in store for the residential property market? We are no soothsayer who can predict the future but we do think that the snake is unlikely to sprint like the tiger and the rabbit and will most likely slither through the year at a slower pace. The following is our take on how the residential property market will be like for 2013. A recent survey by REHDA (Real Estate & Housing Developers Association) indicates an improved property market sentiment and outlook for the first half of this year. Generally, property developers in the country are quite positive about the market and have plans to launch more projects below the RM 500,000 mark in the first half of this year. Whilst we would go along with the findings of REHDA’s survey, our own view is that the first half of the year could be a slow, “wait and see” period for the property market. The first two months of the year will typically be slow due to the start of the new school year and the festive season and heavier spending on consumer goods and services. With GE 13 speculated to be held in March / April and in any case not

later than June, some investors would probably hold on until the dust settles down after the elections before making substantial financial commitments on a new property. By the time the “business as usual” sign is put back on, it will be late April / May i.e. assuming that the political landscape is not drastically altered after the elections and investor confidence has not been shaken. We therefore feel that the first half of the snake year will be a period of missed opportunities. The action will begin to ramp up from April / May and barring any major upheavals overseas, should continue till the end of the year. Overall, 2013 should still end on a positive note although in terms of transactional volume and price increase, we foresee that the rate of increase will likely be tapering off from the past three blistering years. The better than expected increase in GDP for the last quarter of 2012 to 6.4%, which is the highest quarterly growth over the past two and a half years,

indicates that the country’s economic health is still sound, despite strong headwinds overseas. The massive spending under the government’s Economic Transformation Programme (ETP) has resulted in an 18.5% growth in the construction industry in 2012 and will continue to provide the base for economic resilience in 2013 together with strong private consumption, whatever happens in Europe and U.S. This will set the scene for continued confidence in the property market and we foresee the property market to continue its growth momentum, albeit at a slower pace. Property prices are expected to continue to go up, driven by strong demand as well as inflationary pressures but the pace will be at a trot rather than a gallop. For this year, the market should see more projects launched for the middle class who has previously being neglected by both the Government and the private sector. The Government has now stepped in with the PR1MA housing schemes to

What Does The Snake Year Hold For The Residential Property Market In The Klang Valley? By Tang Chee Meng

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provide more home ownership opportunities for first time home buyers in this category. Under the My First Home Scheme, those who meet the set criteria will be able to apply for 100% loans to help them finance their house purchase, the price of which should not be more than RM 400,000. Applicants must be aged below 35 and have a monthly income of not more than RM5,000 for individuals or RM10,000 for joint applicants. The market focus will shift to medium cost houses priced below RM 400,000 although in the major urban centres of Kuala Lumpur, Penang and Johor Bahru where land costs are higher, the range will extend to properties priced up to RM 1 million. To accommodate the affordable housing schemes, areas further from the city such as Rawang, Sungai Buloh, Klang, Kajang and Semenyih will witness more projects being launched. Smaller sized houses and apartments will become the flavor of the year as developers look into ways to bring costs down in order to price the houses below RM 400,000. Major developers such as SP Setia and Mah Sing have already staked their claims in the medium cost segment by acquiring land banks for new townships in these areas and are planning to launch their projects this year, if they have not already done so. The 150 km long Mass Rapid Transit system (MRT) has kicked off, with construction works having commenced on the first line, the 51 km long Sungei Buloh – Kajang line (SBK line). This line will have 31 stations and serve a population catchment of 1.2 million people. Areas located at or close to the stations will stand to benefit from the improved accessibility and become more desirable for people who depend on public transportation to commute to and from work. As experienced in other cities which are served by a mass rapid transit system such as Singapore and Hong Kong, areas along the MRT line will likely to witness more development activities as well as an appreciation in prices. The extension of the LRT line will also bring similar benefits to the areas along which it runs. The proposed Kelana Jaya LRT extension will have 13 new stations and will link Lembah Subang – Kelana Business Centre to Subang, USJ, Alam Megah and Putra Heights whilst the proposed Ampang LRT extension which will consist of 13 new stations, will commence from Sri Petaling and pass through Puchong, Kinrara and end at Putra Heights. On a similar but even more exciting note, the recent announcement of the proposed bullet train project connecting Singapore and Malaysia could have a tremendous impact on the way people live and work in Kuala Lumpur and Singapore. With travelling time between the two cities shortened to only 90

minutes, this may provide the impetus for Singaporeans to invest in cheaper properties in Kuala Lumpur as well as the other three states with stops (Seremban in Negri Sembilan, Ayer Keroh in Melaka and Muar, Batu Pahat and Iskandar Malaysia in Johor) even if they do not actually reside in them full time to commute to work in Singapore. It is however not inconceivable for Kuala Lumpur and the other towns to then become weekend retreats for Singaporeans who will be able to capitalize on the strength of their currency to live, play, shop and eat to their heart’s content in a lower cost environment. Malaysian property developers could use this piece of welcome news to make extra forays into the republic to tap into this potentially lucrative market. Back in 2010 when the market was still in the infancy of its recovery from the global financial crisis, developers employed various strategies to boost sales of their projects including DIBS (developer interest bearing schemes). These low entry cost strategies proved to be very effective in drawing out cautious investors still shell shocked from the

aftermath of the financial meltdown suffered by the world’s largest economy and superpower. These schemes have now become so common place that investors have come to expect developers to provide them as a standard offering whenever they launch any new project. Nevertheless such schemes, if continued for too long, may contribute to a property bubble. Just as the Singapore government have pre-emptive measures and stopped such practices, Bank Negara may also follow suit to curb such schemes if they feel that the measures that they have introduced so far have failed to dampen property speculation activities. Developers have begun to look into other ways of enhancing the desirability of their projects and have introduced new design concepts to boost their competitive advantage. Concepts such as hotel inspired living, medically enabled homes, multi-generational living and an increasing adoption of green building certification have been introduced and we foresee more innovative concepts and packaging to make its way into new projects launched this year.

The proposed high speed train project connecting Kuala Lumpur and Singapore is expected to attract development to areas around Seremban, Ayer Keroh, Muar, Batu Pahat and Iskandar Malaysia, by 2020.

TOWER D & E SOLD OUT!Now Selling Tower A, B & FCall us or visit our sales gallery for more info.

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Review for 2012 The cumulative supply of purpose built offices in the Klang Valley rose 2.4% in the first 9 months of 2012 to 102.3 million sq. ft. Approximately 75.6% of the supply is located in Kuala Lumpur whilst the remaining 24.4% is spread over the rest of the Klang Valley. The growth in cumulative supply of purpose built offices in the Klang Valley from year 2008 to Q3 2012 is shown in the graph below:

(Source: NAPIC / HBM Research) * Other parts of Klang Valley - Selangor State excluding Kuala Selangor, Rawang and Semenyih. As at the first half of 2012, there were 17 office projects in the pipeline which will add another 12.05 million sq. ft. of space to the market. 7 of the buildings are located within the Golden Triangle whilst 1 is located within the Central Business District and the remaining 9 within the City Centre.

(Source: NAPIC/HBM Research) The occupancy rate of the office sector in the Klang Valley has improved to 80.24% in Q3 2012 after the declines since 2009 (87.17% inand 84.24% respectively in year 2009 and 2010. Occupancy rates declined further to 79.64% in year 2011.

Year Occupancy rate (%) 2009 87.17 2010 84.24 2011 79.64

2012 (Q3) 80.24

Klang Valley Office Sector Review

G Tower offers facilities and services for offices, hotel and club. The building is Grade A, with hi-tech MSC compliant specifications that are smart and green built. Currently asking rental for office space is RM8.00 per sq. ft or higher.

As one of the prime buildings that is located within the KLCC area, Petronas Twin Towers (Tower 2) maintained the highest rental of between RM9.00 per sq. ft. to RM12.00 per sq. ft.

66.96 70.21 73.34 74.92 77.32

21.27 22.63 24.7 25.03 24.98

020406080

100120

2008 2009 2010 2011 Q3 2012Net

Let

tabl

e Ar

ea (m

illio

n sq

. ft.)

Cumulative Supply Of Purpose Built-Offices In Klang Valley

Kuala Lumpur Other parts of Klang Valley

70

75

80

85

90

95

2008 2009 2010 2011 Q3 2012

(%) Occupancy Rates of Purpose-built Office in Klang

Valley

Kuala Lumpur Other parts of Klang Valley

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Office Transactions in Klang Valley, 2010-2011

(Source: APIC/HBM Research) *GFA - Gross Floor Area The transaction market for purpose-built offices in the Klang Valley appeared to be more subdued in the first half of this year compared to 2010 and 2011. During the period 2010 to first half of 2012, the highest transacted price of purpose built offices recorded was for Tower 1, Avenue 5 in Bangsar South. This office building was transacted at RM37.5 million or RM1,010 per sq. ft. based on net floor area. There were only 4 purpose-built office buildings sold in the Klang Valley during the 1st half of 2012, within a price range of between RM364 per sq. ft. and RM938 per sq. ft. Office rentals were generally stable for Klang Valley. Average asking rentals of purpose-built offices in Kuala Lumpur range between RM5.00 per sq. ft. and RM12.00 per sq. ft. Only a few selected prime office buildings for example Petronas Twin Towers 2, Menara Maxis and G Tower, have asking rentals of RM8.00 per sq. ft or higher (These buildings are Grade A, with modern facilities and located within the KLCC area). Petronas Twin Towers (Tower 2 maintained the highest rental of between RM9.00 per sq. ft. to RM12.00 per sq. ft. On the other hand, prime purpose-built offices in Petaling Jaya are being rented out at between RM3.50 per sq. ft. and RM4.50 per sq. ft. Since the revision of location requirements for MSC Malaysia companies took effect, office buildings located within the MSC Malaysia Cybercentre boundary have increased their asking rentals including Mid Valley City’s Menara IGB, Centrepoint South and Centrepoint North whereby the asking rentals now start from RM5.50 per sq. ft. Major projects that will boost the office sector within Klang Valley are the KL Eco City, Kuala Lumpur International Financial District (now renamed as Tun Razak Exchange (TRX)), New MITI and KL Metropolis, Menara Warisan KL and Damansara City 2 in Pusat Bandar Damansara. Rentals have generally remained stable and newly completed buildings with improved specifications especially GBI-certified and MSC status buildings are able to command higher rental rates. However these buildings are taking a longer time to fill up with tenants.

Market Outlook for 2013 Demand for office space in the Klang Valley is expected to remain positive in 2013 with the implementation of the various economic initiatives under the Greater Kuala Lumpur NKRA for instance, InvestKL’s government supported initiatives to attract 100 MNC’s to set up their Operational Headquarters (OHQ), International Procurement Centres (IPC), Regional Distribution Centres (RDC) or Regional Shared Services in the Klang Valley. The unexpectedly strong 6.4% growth posted by the Malaysian economy in Q4 2012 pushed overall GDP growth for the full year to 5.6% and indicates that the economic fundamentals are still sound and the country will likely continue to ride on the momentum through 2013. The massive spending under the Economic Transformation Programme (ETP) will provide not only support for the economy and take up any slack in export growth but will also create demand for services which will lead to higher demand for office space. However, it is noted that the global economic recovery still not taken firm root and the anticipated substantial increase in supply of office space in the Klang Valley may start to put pressure on both occupancy and rental rates in 2013. In particular, the significant supply of office space that will come onto the market with the implementation of the various projects being undertaken by the government as well as the private sector viz., the 100 storey Warisan Merdeka Tower, the TRX financial centre, the NAZA Matrade expo centre development and SP Setia’s KL Eco-city, poses some concern to industry players as the supply of office space will be significantly boosted with the completion of these projects and may lead to a glut unless there is a quantum leap in the demand for office space over the next few years.

Building Location NLA (sq.ft) Transacted Price

RM Million RM per sq.ft

2010

The Icon (East Wing)

Wisma Volkswagen

Wisma Time

Menara Pan Global

Menara UOA Bangsar (Tower B)

Wisma KLIH

Sunway Towers

Menara Olympia

Wisma UOA Damansara II

Dana 13

Menara PKNS

Wisma Goodyear

Jalan Tun Razak

Off Jalan Bangsar

Jalan Tun Razak

Off Jalan Raja Chulan

Bangsar

Jalan Bukit Bintang

Jalan Ampang

Jalan Raja Chulan

Jalan Changkat Semantan

Subang

Shah Alam

Kelana Jaya

278,182

43,743

171,611

250,000

312,298

55,208

268,412

454,828

296,850

GFA :333,438

244,316

114,286

227.0

40.0

78.0

154.0

289.0

48.0

172.0

200.0

211.0

99.0

91.0

38.0

814

914

455

614

925

869

639

440

711

Na

372

332

2011

Tower 1, Avenue 7

Tower 1, Avenue 5

Wisma Goldhill

Amcorp Trade Centre

Menara Multi-Purpose

CIMB Building

Pudu Plaza

Bangsar South

Bangsar South

Jalan Raja Chulan

Petaling Jaya

Jalan Munshi Abdullah

Jalan Hang Lekiu

Jalan Bugis

46,100

GFA : 37,132

270,000

Na

541,424

GFA : 51,990

Na

36.0

37.5

174.5

75.0

375.0

16.5

78.0

781

1010

646

Na

693

317

Na

2012

117, Jalan Cheng Lock

Lot 45 & 46, Jalan Syed Putra

Menara TSR

Tower 8, Avenue 5

Jalan Cheng Lock

Jalan Syed Putra

Mutiara Damansara

Bangsar South

GFA : 86,329

GFA : 87,378

30,942

100,000

38.0

31.8

21.0

93.8

440

364

678

938

GONG XI FA CAI FEVER IN TOWN!

For more pictures, visit www.facebook.com/henrybutchermalaysia

23 Feb: AraGreens Sales Gallery @ Ara Damansara

HSB Development Sdn. Bhd., the developer of AraGreens project, organised a Chap Goh Mei lunch celebrations at their sales gallery in Ara Damansara, complete with lion dance performance, Bian Lian (face changing) show and magic show. HSB Development CEO Seth Lim and HSC Healthcare Sdn. Bhd. Chairman Dr. Lim attended the event, together with over 200 AraGreens clients and guests. Other programme highlights include Buyers Get Buyers incentive and opportunity to win prizes at their Wheel of Fortune game.

21 Feb: Henry Butcher KL Office @ 25, Jalan Yap Ah Shak

Henry Butcher ushered in the New Year with lion dance performance and appreciation bu�et dinner at the main o�ce in Kuala Lumpur for all sta� in Klang Valley. The rain that evening didn’t hamper the lion dancers, who not only move perfectly to the beat of the drums, but also got very creative with the o�erings of fruits and greens.

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The Joint Management Body (JMB) of Southgate held its first Chinese New Year celebrations or Chap Goh Mei celebrations at Southgate Kuala Lumpur on Saturday, 23 February 2013. The event was organised by Henry Butcher Malaysia Sdn. Bhd. (Building Management) and Henry Butcher Real Estate Sdn. Bhd. (Leasing), appointed property manager and leasing team for Southgate respectively.

The highlights of the event included Lion Dance, “Bian Lian” (Face-Changing), acrobatic performance by the Shanghai Acrobatics Troupe and Guzheng recital. Lucky draw sessions were carried out throughout the entire event with more than 50 prizes sponsored by the tenants and business owners of Southgate.

Chairman of the JMB, Mr Kerk Han Meng (who also the Chairman of Technoplx and CJ Polymers Sdn. Bhd.) shared that demand for office space in the Klang Valley is expected to remain positive in 2013 with the implementation of the various economic initiatives under the Greater Kuala Lumpur NKRA. “We are glad to see the occupancy rate in Southgate has been improved greatly with the presence of professional property manager and leasing team under Henry Butcher, and we have confident that Southgate will be fully occupied with our JMB on-going effort and Henry Butcher’s expertise”, says Mr Kerk. Southgate, an upcoming commercial hub in Sungai Besi, is set to benefit from the overflow of two colossal projects namely the RM26 billion Tun Razak Exchange and the 495 acres Sungai Besi Airport redevelopment a.k.a. Bandar Malaysia under the Greater Kuala Lumpur development plan. This commercial centre features creative work spaces with modern facilities and an atrium with F&B retail shops with the highest standards of a well-planned business park. Southgate’s contemporary and stylish concept also makes it an ideal location for niche boutiques, fitness centre and specialty stores. Restaurants, sidewalk cafes, and bistros as well as banks are present to support these business and visitors. Current tenants include Hong Leong Bank, Nissan, MMC Gamuda, Zalora, Nichii, Pappa Rich, and others. More about Southgate

Positioned at the intersection of Jalan Dua and Jalan Sungai Besi, this integrated commercial hub spreads over 5 acres freehold land is conveniently located to all the local amenities (Chan Sow Lin LRT station, Pudu Police Department, Jalan Pudu Fire & Rescue Department, City Medical Centre, Prince Court Medical Centre, and Hospital Tung Shin) with good transport links to and from the city centre (Jalan Tun Razak, KL-Seremban Highway, Federal Highway, Besraya Highway, Kesas Highway and

Middle Ring Road). This busy location benefits from a high volume of passing vehicular and pedestrian traffic and a good surrounding residential catchment area (Cheras, Bandar Sri Permaisuri, and Salak Selatan). There are five blocks at Southgate; its two main blocks, Apex (offering office space between 5,000 sq. ft. and 50,000 sq. ft.) and Corporate which are highly visible from Jalan Dua and Jalan Sungai Besi respectively, and three shop-office blocks, Vox, Vivo and Vertex (offering office space between 581 sq. ft. and 1,690 sq. ft.) which enjoy interconnectivity through the wide, airy atrium space. Residents and visitors will appreciate the alfresco ambience, ample basement level parking spaces, high speed wireless internet hotspots, 24 hours security surveillance, as well as the artistic landscape and water features within the buildings.

For leasing enquiries at Southgate, please contact Ms. Carmen Liew at 013-329 4319 / 03-9222 8118 or email: carmenliew@henrybutcher.com.my. Website: www.southgate.com.my

Southgate Ushers in the Year of the Snake

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Existing Supply The cumulative supply of retail space in the Klang Valley amounted to 44.71 million sq. ft. as at Q3 2012 with the bulk of it situated within Kuala Lumpur with a total net lettable area of 26.14 million sq. ft. This is a 4.4% increase compared to the supply in year 2011.

Future Supply Currently 23 retail malls with a total net lettable area of 10.956 million sq. ft. are under construction in KL / Selangor and are expected to be opened from year 2013 to 2015. These malls are tabulated below:-

S/N Name Location Nett Lettable Area (sq. ft.)

2013 1 Nu Sentral KL Sentral 650,000 2 Cheras Sentral (former Plaza Phoenix) Cheras 400,00 3 Encorp Strand Mall Kota Damansara 260,000 4 KLIA2 Sepang 350,000 5 Gateway@KLIA2 Sepang 350,000 6 D’Pulze Cyberjaya 300,000 7 Market Hall @ Pudu Jalan Pudu 250,000

2014 8 Quill 15 Jalan Sultan Ismail 1,000,000 9 Sunway Pyramid 3 Bandar Sunway 62,000

10 M Square Shopping Centre Puchong 186,000 11 Damansara Uptown Mall Damansara Uptown 385,000 12 Empire City Mall Damansara Perdana 1,000,000 13 Atria Shopping Gallery Damansara Jaya 660,000 14 Glomac Damansara Mall Damansara 300,000 15 i-City Mall Shah Alam 1,000,000 16 The Wharf Puchong Puchong 303,000 17 Pavilion KL Phase 2 Bukit Bintang 300,000 18 Bangsar Trade Centre Plaza Pantai 100,000 19 Da:men USJ 400,000 20 Jaya Shopping Centre PJ 300,000

2015 21 Sunway Velocity Cheras 1,000,000 22 IPC Mall Cheras 1,000,000 23 Melawati Mall Taman Melawati 800,000

TOTAL 10,956,000

20.54 22.93 22.93 22.78 23.01 25.15 26.14

13.6 13.59 13.52 16.24 16.6 17.66 18.57

05

101520253035404550

2006 2007 2008 2009 2010 2011 Q3 2012

Net

Let

tabl

e Ar

ea (m

illio

n sq

. ft.)

Cumulative Supply Of Retail Space In Klang Valley

Kuala Lumpur Other parts of Klang Valley

Klang Valley Retail Sector Review

(Source: NAPIC/HBM Research) *Other parts of Klang Valley include Petaling Jaya, Subang Jaya/ Sunway, Damansara, Kelana Jaya, Puchong/ Sg Besi, Ampang, Selayang and Kepong.

Nu Sentral, KL Sentral

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Demand Analysis

Overall occupancy rates of retail malls in the country declined marginally during the third quarter of 2012, registering at 78.8% compared to 79.5% for 2011 and 80.6% for 2010. The increasing supply of retail space appears to be beginning to have an impact on occupancy as well as rental rates, with newly completed malls taking a longer time to fill up with tenants.

For Kuala Lumpur and Selangor, occupancy rates of retail malls remained steady during 2009 and 2010, registering at 84.2% and 89.0% respectively. However, by Q3 2012, occupancy rates of retail malls in Selangor recorded a slight decrease due to the addition of more retail space on the market. Occupancy rates of retail malls in Kuala Lumpur as at Q3 2012 stood at 82.3% after a slight decrease in 2011.

Capital Values A total of 10 retail malls in the Klang Valley were reported to have been transacted between 2010 and 2012. 6 malls were transacted in 2010 at prices ranging from RM378 per sq. ft. for suburban malls (Selayang Mall) to between RM1,561 per sq. ft. and RM2,115 per sq. ft. for retail malls within Kuala Lumpur City Centre. Sunway Pyramid was reportedly transacted at RM1,265 per sq. ft. in 2010 whilst Pavilion Mall was acquired by Pavilion REIT in 2011 at RM2,390 per sq. ft. Retail Transactions in Klang Valley, 2010-2011

Building Location Net lettable area

(sq.ft) Transacted Price

RM Million RM per sq.ft 2010 Selayang Mall Sunway Pyramid Part of Sg Wang Plaza Starhill Gallery Lot 10 1 Mont Kiara*

Selayang Bandar Sunway Bukit Bintang Bukit Bintang Bukit Bintang Mont Kiara

338,515 1,685,568 450,470 297,354 256,811 225,920

128.0 2,132.0 724.0 629.0 401.0 333.0

378 1,265 1,607 2,115 1,561

- 2011 Putra Place** Pavillion Mall The Gardens Mall Citta Mall

Jalan Putra Jalan Raja Chulan Mid Valley City Ara Damansara

501,000 1,335,119 814,860 424,467

820.0 3,193.3 820.0 245.0

- 2,390 1,006

577 Rental Rates Rentals of retail space in shopping complexes were generally stable with minimal movement recorded over the last two years. The rental rates of some of the major retail malls within Kuala Lumpur City Centre are tabulated below:- Name of Retail Mall Lower

Ground Ground First Second Third

Rental Rate (RM per sq. ft. per month) Pavilion 5 - 60 9 - 70 6 - 60 6 - 50 6 - 45 Sg Wang Plaza 15 - 33 13 - 44 7 - 18 4 - 16 4 - 9 BB Plaza 15 - 22 23 - 38 13 - 14 5 - 10 4 - 5

75777981838587899193

2006 2007 2008 2009 2010 2011 Q32012

Occ

upan

cy ra

te (%

)

Year

Occupancy Rate for Kuala Lumpur & Selangor Shopping Complexes, 2006 - Q3 2012

Malaysia

Kuala Lumpur

Selangor

(Source: NAPIC/Henry Butcher Malaysia Research) *1 Mont Kiara consists of a 20 storey office tower block and a 5 storey retail mall. **Putra Place consists of The Mall, Putra Place, The Legend Hotel and 1,323 carpark bays.

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Market Outlook for 2013 The retail property market in the Klang Valley was stable in 2011 through to the first half of 2012 though there were uncertainties with the impending general elections in Malaysia, the European debt crisis and global economic slowdown as well as tightened credit measures introduced by Bank Negara to address the issue of high household debt. Some notable events in the retail property market over the past two years include the launching of Pavilion REIT in 2011 and IGB REIT in 2012. These two REITs were valued at RM3.19 billion and RM 4.6 billion respectively. A more recent event was the acquisition of Carrefour’s hypermarkets by Aeon Japan and their rebranding as Aeon Big. A number of key retail players like Parkson and Aeon Malaysia have announced plans to increase their presence throughout the country whilst some of the leading malls are also embarking on expansion plans. These include Pavilion Phase 2, Sunway Pyramid 3 and Suria KLCC extension. Although these will add substantially to the supply of retail space in the Klang Valley and exert some pressure on overall occupancy rates, these malls which have been able to attract high footfalls should be able to fill up the space and maintain, if not improve on their overall position in the market with the new retail attractions that they will be able to bring on with the additional space. Going forward, if the nation’s economy is able to sustain its growth, the retail industry should retain its growth momentum although overall occupancy rates may come under increasing pressure with the opening of the many new malls currently under construction.

Pavilion KL Mall is one of the premium shopping centers in the heart of golden triangle of Kuala Lumpur. Located at one of the busiest streets in town, Bintang Walk area of Jalan Bukit Bintang, Pavilion KL Mall is well positioned to be a key shopping destination for tourists.

The development of Phase 3 of Sunway Pyramid consists of both retail and hotel properties. When completed in mid-2014, this will bring in additional retail space of 62k sq. ft., 435 new hotel rooms and some 760 new car parking bays. Sunway Pyramid 3 is estimated to attract 111k new visitors.

IGB REIT was launched in 2012 at the value of RM4.6 billion with assets comprising Mid Valley Megamall and The Gardens Mall. Currently it is the largest retail REIT in Malaysia by asset size.

In November 2012, AEON acquired the operation of Carrefour Malaysia with an enterprise value of €250 million. AEON is now the second largest retailer in the nation with the combined sales from AEON Retail stores (formerly known as JUSCO) and current Carrefour outlets.

With the addition of 140,000 sq. ft. of net lettable area, Suria KLCC now boasts 1 million sq. ft. of shopping, leisure and entertainment mix. The iconic shopping mall features more than 320 specialty stores and enjoys a steady occupancy rate of over 99%.

ABDUL LATIFF MOHIDIN Mindscape, 1983, oil on canvas, 182cm x 91cm, estimate RM 250,000 - 350,000

25, Jalan Yap Ah Shak, 50300 Kuala Lumpur, Malaysia.

t. +603 2691 3089 | f. +603 2691 3127 | www.hbart.com.my | info@hbart.com.my

Enquiries: Chris Tay +6016 298 0852 | chris@hbart.com.my

MALAYSIAN& SOUTH EAST ASIANART AUCTION

PENANG PREVIEW

28 - 31 March 2013, 11am - 7pma2 Gallery 27 Lorong Bangkok, 10250 Penang, Malaysia.

SINGAPORE PREVIEW

4 - 7 April 2013, 11am - 7pmHelutrans Artspace39 Keppel Road #01-05, Tanjung Pagar Distripark, Singapore 089065.

KUALA LUMPUR FULL VIEWING

11 - 20 April 2013, 11am - 7pmWhite Box, MAP@PublikaLevel G2-01, Block A5, Dutamas, 1 Jalan Dutamas 1, 50480 Kuala Lumpur, Malaysia.

SUNDAY 21 APRIL 2013, 1PM

SIME DARBY CONVENTION CENTRE, KUALA LUMPUR

Ballroom 3, 1A, Jalan Bukit Kiara 1, 60000 Kuala Lumpur, Malaysia

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Bao Fun (MM2H) Sdn. Bhd., a new service arm under the Henry Butcher Malaysia group, is established to assist foreigners who wish to either retire or invest in Malaysia. When our clients choose to apply for MM2H status through us, our service starts from the comfort of our clients’ home wherever they are, right up to finding a new home and settling down in a new country. As a Licensed MM2H Agent by the Ministry of Tourism Malaysia, we work closely with the Ministry by taking part in foreign and local expatriate and tourism exhibitions.

The MM2H programme was introduced by the Government of Malaysia to allow citizens of all countries that are recognized by Malaysia, regardless of race, religion, gender and age to stay in Malaysia for a period of 10 years and renewable thereafter. It initially started out as the Silver Hair programme in year 1996 to attract foreigners but was later rebranded as the “Malaysia, My Second Home” programme or in short MM2H in year 2002 with many conditions being relaxed compared to the previous programme. Participants are welcome to stay here for 365 days a year without having to leave the country. There is also no minimum stay requirement and participants are free to enter and leave the country anytime. To qualify, participants must fork out at least RM150,000 (RM300,000 for those below 50 years of age), which will be kept as a fixed deposit at any banking institution in Malaysia. Alternatively, participants who have purchased and fully-owned residential properties (at RM1 million and above) in Malaysia are only required to open a fixed deposit account of RM100,000 (RM150,000 for those below 50 years of age).

MM2H participants are allowed to invest and participate in business, subject to existing Government policies, regulations and guidelines which are in force for the relevant sectors. They are also allowed to apply for a special work permit (up to 20 hours a week) to work under certain critical sectors subject to the prevailing guidelines of the Immigration Department of Malaysia. Bao Fun (MM2H) truly believe Malaysia is a beautiful country to work, live and play, without compromising one’s need to feel more at home; and hence our concerted effort to promote Malaysia as a whole to the world.

For enquiries about MM2H application and requirements, please contact our Ms. Carrine Koay at 03-2694 3688 or email: baofunmm2h@gmail.com.

Malaysia My Second Home (MM2H) Programme by Bao Fun (MM2H) Sdn. Bhd.

HB HERALD Issue 5

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Amazing meals at surprising low prices – that’s how I wish describe my maiden trip to Phnom Penh, the capital and largest city of Cambodia. A self-confessed night owl, I was inundated by the vibrant nightlife and numerous bars and pubs located along the bustling banks of the Mekong River. Towers of beer in R&B and Hip Hop bars, Rock N’ Roll live band, a glass of imported wine or champagne with some Jazz and Oldies playing in the background, or even a cup of flat white with Gelato - there was always something, for everyone! I had the Angkor beer, the national beer of Cambodia, which many claim as the best beer in the region. I was immediately ‘localised’ and hooked! Rich golden colour, light hoppy aroma and full bodied with a hint of bitterness, the beer comes down my throat smoothly and feel very enjoyable to drink. A glass of Angkor beer only costs 0.5USD, a glass of rum costs 3USD and a glass of cocktail costs 4USD. Imported goods in Cambodia are cheap as the government imposes low import duty on them. Liquors at the grocery store next door are priced lower than those sold at airport. The land size of Phnom Penh is about 678 square kilometres, roughly 0.37% of Cambodia’s total area and populated by over 1.5million people. Being a small town, I was surprised by the number cafes and restaurants available to the locals as well as tourists. One can easily dine on anything in the town centre, from the local Cambodian Lok Lak to Mexican Fajitas. Going along the recommendation of my two other friends, we went to Aria D’Italia Pizzaria for some ‘real’ pizzas. We ordered the Bruschetta, Parma ham Pizza and Marinara pasta. For desserts, we had Panna Cotta and Tiramisu. Total bill = 21USD. I believe this meal could have easily cost a minimum of RM100 back in Kuala Lumpur! Still looking for Western dining experience, I dropped by Java Café and Gallery. Amidst a backdrop of artworks including local paintings and sculptures, this café serves a wide variety of salad,

sandwiches, and their specialty burgers and coffee.

I was totally satisfied with their bacon gruyere cheese burger – slices of crispy bacons and chunks of melted Swiss cheese sandwiched between warm, toothsomely brittle buns, and accompanied by generous servings of fresh-cut fries, lettuce and tomatoes slices - absolutely ‘yummylicious’! A cup of flat white was served right after my burger. I have to say their coffee is one of the best in town. My friend, Ryan had the local Cambodian coffee, which is a dark coffee without milk. In fact, the taste is thick, rich and definitely worth a try.

Moving on, the local fare was simply delightful. I was introduced to an open-air Cambodian food court that offers midscale dining experience with a tropical ambience. The kitchen and food counters were located at the middle of the food court and each counter served

different type of dishes. Fresh ingredients were placed at the front of each counter. What caught my eye were the heaps of skinless and plump frogs, ready to be cooked to your preference. These edible frogs can be easily found in Malaysian night market. But it was the first time I see an open display of fresh frogs! Do try the local deep fried frogs served with pepper lime sauce.

I tried their local ginger fish dish with rice noodle. This dish can also be served with eel or chicken. The ginger and fish were cooked in a wholesome soup, and served with fragrant herbs, such as mint, lemongrass, Kaffir lime and coriander. Dining in Cambodia is such a pleasant activity due to the wide menu selections and affordability. Cambodia was once part of the colony of French Indochina from 1863 to 1953. One of the French influences on Cambodian cuisines includes the popular baguettes bread. There are many street stalls, selling fresh baguette, filled with Laughing Cow cheeses, pieces of roquette, meat slices, butter and sauces at only 1.5USD. They are simple, yet tasty. The high influx of expats in recent years has brought different culture and dining experience into Phnom Penh. Due to the low cost of living and low import tariff, the price of goods and services in the city is one of the lowest in region. Based in Phnom Penh, HB Consultancy (Cambodia) Pte. Ltd, a member of Henry Butcher Malaysia group has been in operation since Jan 2011. The company offers consultancy services related to valuation, project marketing, agency, research, property management and plant and machinery. For enquiries, please call +855 23 723 212, or email: hbccambodia@gmail.com.

Fresh frogs on display

Bacon gruyere cheese burger

Panna Cotta

Lovely Bruschetta

Eating Out in Cambodia – A Delightful Experience By Issac Neng

HB HERALD Issue 5

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Exclusive Preview – Baltimore Tower, Canary Wharf, London E14

Baltimore Tower is within 10 minutes walk or 2 stop hop on the DLR from Canary Wharf. With over 93,000 people already working in and commute to Canary Wharf daily, Canary Wharf remains a powerhouse of global headquarters and the fastest growing business district in the UK. It is also the center of fashion and recreation with 200 quality boutiques, brand name shops, bars & restaurants. Baltimore Tower has no equal. It is the place to be for the Canary Lifestyle!

Date: 1 - 3 March 2013

Time: 10.00am – 7.00pm daily

Venue: Mandarin Oriental Kuala Lumpur, 50088 Kuala Lumpur.

Contact Person: Jazmine, +6017-877 7489, london@henrybutcher.com.my

AraGreens Residences @ Bumiputera Property Exhibition 2013

The Bumiputera Property Exhibition (BPEX) is an exhibition that highlights the properties from various developers to sell off their Bumi lots to potential customers. Exclusive for this event, AraGreens Residences will be offering up to 9% rebate*, free legal fee and DIBS to potential buyers.

Date: 1 – 3 March 2013

Time: 11.00am – 9.00pm daily

Venue: Mid Valley Exhibition Centre, Mid Valley City, Lingkaran Syed Putra, 59200 Kuala Lumpur.

Contact: +603-7843 6188

Exclusive Preview – The Hamptons, Breakfast Point, Australia

The Hamptons – the latest release in Sydney’s premier harbour front community at Breakfast Point. The Hamptons contains a mix of 44 x 1 bedroom and1 bed + study apartments, 37 2 bedroom and 2 bed + study apartments, only 5 x 3 bedroom apartments and 5 exclusive luxury penthouses, all a short walk from world famous Sydney harbour at Breakfast Point. These apartments are ideal for owner occupiers and investors looking for a low maintenance home close to the harbour and enjoying world class facilities and lifestyles.

Date: 16 – 17 March 2013

Time: 10.00am – 7.00pm daily

Venue: One World Hotel (Room Iris & Hibiscus), First Avenue, Bandar Utama City Centre, 47800 Petaling Jaya, Selangor, Malaysia

Contact Person: Jazmine, +6017-877 7489, australia@henrybutcher.com.my

Art Auction Malaysia April 2013 – Penang Preview

Henry Butcher Art Auctioneers returns in its fifth sale with the highly anticipated Art Auction Malaysia this April 2013. Selected highlight pieces will be shown in a traveling exhibition, starting at Heritage Island up north – Penang!

Date: 29 – 31 March 2013

Time: 11.00am – 7.00pm daily

Opening Night: Thursday 28 March 2013, 7pm

Venue: a2 Gallery, 27 Bangkok Lane, 10250 Penang, Malaysia.

Contact Person: Chris Tay, +6016-2980852, chris@hbart.com.my

Upcoming Events – March 2013

HB HERALD Issue 5

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Art Auction Malaysia April 2013 – Singapore Preview

Henry Butcher Art Auctioneers returns in its fifth sale with the highly anticipated Art Auction Malaysia this April 2013. Selected highlight pieces will be shown in a traveling exhibition, stopping at the Art Hub of Southeast Asia – Singapore!

Date: 5 – 7 April 2013

Time: 11.00am – 7.00pm daily

Opening Night: Thursday 4 April 2013, 7pm

Venue: Helutrans Artspace, 39 Keppel Road #01-05, Tanjung Pagar Distripark, Singapore 089065.

Contact Person: Chris Tay, +6016-2980852, chris@hbart.com.my

Art Auction Malaysia April 2013 – Kuala Lumpur Full Viewing

Henry Butcher Art Auctioneers returns in its fifth sale with the highly anticipated Art Auction Malaysia this April 2013. Collectors and art lovers alike will have the opportunity to view the entire collection exhibited in Kuala Lumpur before they go under the hammer.

Date: 11 – 20 April 2013

Time: 11.00am – 7.00pm daily

Venue: White Box, MAP@Publika, Level G2-01, Block A5, Dutamas, 1 Jalan Dutamas 1, 50480 Kuala Lumpur, Malaysia.

Contact Person: Chris Tay, +6016-2980852, chris@hbart.com.my

Art Auction Malaysia April 2013 – Auction Day

Henry Butcher Art Auctioneers returns in its fifth sale with the highly anticipated Art Auction Malaysia this April 2013.

Date: 21 April 2013

Time: 1.00pm

Venue: Sime Darby Convention Centre, Ballroom 3, 1A Jalan Bukit Kiara 1, 60000 Kuala Lumpur, Malaysia.

Contact Person: Chris Tay, +6016-2980852, chris@hbart.com.my

Henry Butcher Retail Director Speaking Engagement with FMM Marketing & Branding Conference 2013

The 6th FMM Marketing & Branding Conference will highlight the best practices of industry leaders and solutions from the retailers. It will bring together decision makers of the retail sector, established market leaders as well as industry incumbents to build new networks, share winning strategies and provide participants with innovative ideas to sharpen their competitive edge through meaningful brand experiences across a multitude of customer touch-points. Mr. Tan Hai Hsin, Managing Director, RGM Retail Group (Malaysia) Sdn. Bhd., will be giving a talk on “Tomorrow's Cities in Malaysia: Future for Shops and Shopping Centres” at 9.45am.

Date: 18 April 2013

Time: 8.00am – 5.15pm

Venue: The Royale Bintang Damansara Hotel, 2, Jalan PJU 7/3, Mutiara Damansara, 47810 Petaling Jaya, Selangor.

Contact Person: Jackie, +603-6286 7200, jackie@fmm.org.my

Upcoming Events – April 2013

HENRY BUTCHER MALAYSIA

PENINSULAR MALAYSIA

Klang ValleyAmpangT • +603-4270 2072 / 73F • +603-4270 2082 E • hbjurunilai@yahoo.com

DamansaraT • +603-7118 3800 F • +603-7727 4077 E • hbdi@henrybutcher.com.my

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Central RegionMelakaT • +606-281 2188F • +606-281 2189 E • hbmalacca@yahoo.com

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Eastern RegionKota BharuT • +609 747 4001F • +609 747 5003 E • hbmkel@yahoo.com

Kuala TerengganuT • +609-620 3838 F • +609-620 3828 E • hmtrg@streamyx.com

KuantanT • +609-516 1155 F • +609-516 3355 E • hbmkn55@streamyx.com

Southern RegionJohor BahruT • +607-236 8060 F • +607-235 3060 E • henrybutcherjohor@gmail.com

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PontianT • +607-686 3060 F • +607-688 2060 E • hbpontian@yahoo.com

EAST MALAYSIA

SabahKota KinabaluT • +6088-255 000 F • +6088-257 333 E • hbsabah@gmail.com

SandakanT • +6089-223 833 F • +6089-223 822 E • skanhbll@streamyx.com

TawauT • +6089-779 380 F • +6089-779 381 E • hbsabah@gmail.com

SarawakKuchingT • +6082-423 300 F • +6082-231 036 E • hbswak@gmail.com

MiriT • +6085-442 800F • +6085-429 699 E • hbmalmiri@yahoo.com

CAMBODIA

Phnom PenhT • +855 23 72 3212F • +855 23 72 3213E • hbccambodia@gmail.com

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