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  • property developersBEST

    The methodologyHow the companies are ranked

    PG6

    THE WEEK OF SEPTEMBER 22 | 2003THE EDGE

    RANKING COMPANY SOME SIGNIFICANT PROJECTS*

    1 IGB Corp Bhd Mid Valley Megamall, Sierramas, Desa Kudalari2 SP Setia Bhd Taman Bukit Indah (Johor),

    Pusat Bandar Puchong, Duta Nusantara

    3 IOI Properties Bhd Bandar Puchong, IOI Palm Garden Resort,Bandar Putra Senai (Johor)

    4 Bandar Raya Taman Permas Jaya (Johor), Sri PenagaDevelopments Bhd Condominium, Tivoli Villas Condominium

    5 MK Land Holdings Bhd Damansara Perdana, Damansara Damai,Bukit Merah Laketown Resort (Perak)

    6 Sunway City Bhd Bandar Sunway, Pusat Bandar Seberang Jaya(Seberang Prai), Sunway City Ipoh (Ipoh)

    7 Sime UEP Properties Bhd Subang Jaya, UEP Subang Jaya, Ara Damansara8 Island & Peninsular Bhd Bandar Kinrara, Taman Setiawangsa,

    Desa Mutiara (Penang)

    9 (tie) Sunrise Bhd MontKiara, Seremban Forest Heights(Seremban)

    9 Pelangi Bhd Taman Pelangi Indah (Johor),Taman Perling (Johor), Taman Sutera (Johor)

    *Unless stated the projects are located in the Klang Valley

    TOP 10

    Malaysias Best PG2-4 | Innovative IGB PG8-9 | SP Setia walks the talk PG10-11 | IOI Properties: Maximisingprofitability PG12&14 | Bandar Raya Developments: The quiet one... PG16-17 | MK Land in for the long haulPG18-19 | Sunrise: Delivering on quality and customer service PG19-20 |

    COMPANY

    Asia Pacific Land BhdBandar Raya Developments BhdBCB BhdCountry Heights Holdings BhdDijaya Corp BhdFACB Resorts BhdGlomac BhdGold Bridge Engineers & Construction BhdHong Leong Properties BhdIGB Corp BhdIOI Properties BhdIsland & Peninsular BhdLand & General BhdMalton BhdMetro Kajang Holdings Bhd

    COMPANY

    MK Land Holdings BhdNegara Properties BhdParamount Corp BhdPelangi BhdPetaling Garden BhdPK Resources BhdSelangor Properties BhdSHL Consolidated BhdSime UEP Properties BhdSP Setia BhdSunrise BhdSunway City BhdTalam Corp BhdUDA Holdings BhdWCT Engineering Bhd

    TOP 30 (in alphabetical order)

    The Edge ranks Malaysias top players from the consumers perspective

    Mcc_1_465.pmd 9/18/03, 5:27 PM1

  • 2 THEEDGE MALAYSIA | CITY & COUNTRY | SEPTEMBER 22, 2003

    Malaysias best| BY SREEREMA BANOO |

    What does it take to be a topproperty developer as faras the consumer is con-cerned?Should the title go toone which churns out huge profits sell-ing hundreds or thousands of conven-tional housing units each year? Orshould a developer that builds fewerhomes but which showcase quality, in-novation and creativity be the moredeserving one?

    In short, are quantitative attributesalone enough to place a property de-veloper in high regard by the market?Or are qualitative attributes just as, ifnot more, pertinent?

    Results of The Edges inauguralRanking of Top Property Developers inMalaysia confirm that from the per-spective of a property investor, the topdeveloper has to have both sets of at-tributes and in large doses.

    The ranking, which covered allproperty development companieslisted on the property sector of theKuala Lumpur Stock Exchange andseveral property development arms oflisted companies, was based on fivequantitative attributes group pre-tax profit; revenue; size of sharehold-ers funds; gearing; and cash positionfor financial year 2002 and fivequalitative attributes product qual-

    ity; innovation and creativity; valuecreation for buyers; image; and exper-tise. (See Page 6 on the methodology.)

    While data for the quantitative at-tributes were taken from publishedsources, judging of the qualitative at-tributes was carried out by a distin-guished panel comprising the Interna-tional Real Estate Federation (Fiabci)Malaysia Chapter president KumarTharmalingam, Real Estate and Hous-ing Developers Association of Malay-sia (Rehda) president Datuk Jeffrey Ng,Bandar Utama Development Sdn Bhddirector Datuk Teo Chiang Kok, BukitKiara Properties Sdn Bhd executivechairman Datuk Alan Tong. The Edgesvote was given by City & Country edi-tor Au Foong Yee who also moderatedthe three-hour deliberation.

    As results of the ranking show, onlydevelopers that display strongly bothquantitative and qualitative traits weregiven the thumbs up. Thus, the win-ning names are no stranger to theproperty development fraternity andproperty investors and would-be in-vestors alike.

    Thats why some of the top devel-opers interviewed were also not sur-prised at the findings, and neither weremembers of the judging panel.

    The top 10The make-up of the top 10 developersreveals a mixed bag of players, some

    armed with decades of experience, oth-ers relatively new contenders. There arethose who started in one location,carved out a strong brand name andhave remained in the same location.Others managed to stamp their markin the Klang Valley although theystarted operations elsewhere.

    Size-wise, there are relatively mod-est-sized companies as well as hugecorporations with shareholders fundsexceeding RM1 billion. As for theirproducts, given the characteristic andstate of the Malaysian property mar-ket which is largely dependent on theresidential subsector, it is no surprisethat the thrust of the top 10 propertydevelopers lies in the housing seg-ment. Some focus on niche, high-endmarkets, others build homes for themasses, while there are those who alsobuild commercial, retail and leisureproperties. Many may not even con-sider one of the 10 to be a true-bluedeveloper, given its thrust in themanufacturing sector.

    While we examine the success sto-ries and focus of some of the top de-velopers (see stories beginning on Page8), we also take a closer look at someof the attributes that can make or breaka developer. These attributes, besideshelping a developers bottom line, alsostand it in good stead, be it in the boomor bust years.

    Image, branding and track recordIt is unanimous. Members of the quali-tative attribute judging panel and topdevelopers interviewed by City &Country rate image, branding andtrack record highly. They see thesetraits as instrumental for developers towin new buyers and keep existingbuyers loyal.

    One developer that prioritisesbranding is IGB Corp Bhd, ranked Ma-laysias top property developer. Groupmanaging director Robert Tan is thefirst to attest to the importance ofbranding. IGB is responsible for the de-velopment of the successful MidValleyCity in Kuala Lumpur as well as theinnovative and high-end housing en-clave Sierramas in Sungai Buloh (de-veloped by Tan & Tan Developmentwhich, following a corporate restruc-turing exercise, has since come underthe IGB stable.)

    The groups reputation for timelydelivery, Tan feels, has branded thedeveloper as one that is reliable amongprospective buyers. This was seenfrom the last property downturn in the1980s when there were many un-completed projects around, we pridedourselves on completing our projectand delivering them on time.

    SP Setia group managing directorDatuk Liew Kee Sin echoes Tansthoughts on the importance of image,branding and track record for timely

    EDITOR-IN-CHIEFHo Kay Tat

    EDITORAu Foong Yee

    ([email protected])

    SENIOR WRITERSreerema Banoo

    WRITERHazatul Syima Haron

    ADVERTISING &MARKETING

    GENERAL MANAGER(REGIONAL)

    Edward Stanislaus(02) 9699 8339

    GENERAL MANAGER(MALAYSIA)

    Chandran Ravi(012) 267 1000

    ASST MANAGERSAlison Lim

    (012) 212 3442

    John Joseph(012) 288 3952

    EXECUTIVESHeidee Dato Hj Ahmad

    (019) 388 1880

    Sharon Lee(017) 873 8139

    Koo Ping Ping(012) 213 5876

    Shirley Chin(012) 226 2321

    Debbie Joseph(012) 206 9344

    Lau Tuck Hoong(012) 375 7035

    COORDINATORAznita Anuar

    (03) 7660 3838 ext 602

    We welcome yourcomments and criticism.

    Send your letters toThe Edge, PO Box 8348,Pejabat Pos Kelana Jaya,

    46788 Petaling Jaya,fax: (03) 7660 8568;

    e-mail:[email protected]

    Pseudonyms are allowed butplease state your full name,

    address and contact number(tel/fax) for us to verify.

    Qualitative attributesRANKING COMPANY

    1 Sunrise Bhd2 IGB Corp Bhd3 Sime UEP Properties Bhd4 SP Setia Bhd5 Bandar Raya Developments Bhd6 MK Land Holdings Bhd7 Sunway City Bhd8 Pelangi Bhd9 Island & Peninsular Bhd10 (tie) Dijaya Corp Bhd

    Negara Properties Bhd

    Quantitative attributesRANKING COMPANY

    1 IOI Properties Bhd2 SP Setia Bhd3 IGB Corp Bhd4 (tie) Bandar Raya Developments Bhd

    MK Land Holdings BhdSunway City Bhd

    7 UDA Holdings Bhd8 Sime UEP Properties Bhd9 Talam Corp Bhd10 (tie) Island & Peninsular Bhd

    Malton Bhd

    Mcc_2t3n4_465.pmd 9/17/03, 11:57 PM2

  • THEEDGE MALAYSIA | CITY & COUNTRY | SEPTEMBER 22, 2003 3

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    delivery for a developer to be suc-cessful. Besides keeping buyershappy, SP Setia also generatesgoodwill through its charitable ini-tiatives, namely, the SP Setia Foun-dation. The foundation aimed atless fortunate primary schoolchil-dren has been a boon for the de-velopers image, Liew concedes.

    People see the things that we doand they say he is a good guy, sopeople will buy from him [SPSetia], he says candidly. SP Setiaemerged second in the ranking.

    Admittedly, there are developerswho do a better job at image build-ing. But as Bandar Utama Develop-ments Teo points out, some devel-opers may not be high profile but atthe end of the day, the test of thepudding is in the eating develop-ers must deliver on their promises.

    There is a trust or bond betweenthe buyer and developer, a link Sun-rise can surely attest to. Sunrise BhdCEO Datuk Michael Yam says 60 percent of the buyers of its latest launch MontKiara Aman are repeatcustomers while 25 per cent are re-ferred buyer