Crest Builder has property projects worth RM2.5 billion coming up

Crest Builder Holdings Bhd may go ahead and launch its three new property development projects in Klang Valley, worth about RM2.5 billion collectively, albeit cautiously. This includes the long-delayed mixed commercial project, Latitud8, a joint-venture (JV) development with Prasarana Malaysia Bhd.

Crest Builder, whose maiden project is 3 Two Square, launched 13 years ago in Petaling Jaya, has said that Latitud8 is scheduled for launch in the second half of 2020.

According to company sources, the company is looking at the possibility to launch Latitud8 towards the end of the year, subject to the outcome of the Covid-19 situation and also market conditions. Crest Builder officials were not immediately available for comment due to the ongoing Movement Control Order (MCO) to curb the Covid-19 virus spread.

Latitud8 will be developed on top of the Dang Wangi LRT station, codenamed "The Bank", at Jalan Ampang, Kuala Lumpur. It has a gross development value (GDV) of about RM1.1 billion, marking Crest Builder's first billion-ringgit property development project.

Crest Builder entered into a joint venture (JV) with Prasarana and Detik Utuh Sdn Bhd to develop Latitud8 in 2016. The project was touted as the city’s first TOD when it was unveiled then.

During the project's groundbreaking ceremony, Crest Builder group managing director Eric Yong said the 44-storey single tower will feature a lifestyle retail mall, 17 floors of office space (340,000 sq ft), as well as 418 units of small office/flexible office (SoFo), small office/home office (SoHo) and duplexes.

The estimated selling price for the residential units was set from RM1,359 per square ft (psf) to RM1,650 psf.

In September 2018, Crest Builder teamed up with T7 Global Bhd's subsidiary T7 Kemuncak Sdn Bhd to jointly construct the tower. However, according to a filing with Bursa on 28 November 2019, T7 Global said there is no material development on the collaboration between T7 Kemuncak and Crest Builder concerning the construction of Latitud8.

"There have been some changes to the original development plan, factoring in the demand and supply of residential and commercial offerings in Kuala Lumpur.

"Crest Builder and its JV partners want Latitud8 to be a luxury and unique development as it sits on top of a transport hub, to attract foreign property buyers. They will be setting a new price for the residential units, which have multiple sizes," the source said.

According to the company's website, Latitud8 will have serviced residence ranging from 582 sq ft to 1,221 sq ft and duplexes starting from 927 sq ft to 2,178 sq ft, complemented with an urban transit mall and Grade A offices.

Two confirmed projects in 2021

Crest Builder's second launch is a mixed development in Kelana Jaya, which has an estimated GDV of about RM1 billion. This is also a JV project with Prasarana to develop 1.98-ha of land around the Kelana Jaya LRT Station.

The project consists of retail units, serviced residential suites and offices. It may be launched in the middle of 2021.

The third launch is a residential project in Klang, with an estimated GDV of RM450 million. The launch had been scheduled for the first quarter of its financial year 2021, but will now be subjected to market conditions.

Crest Builder acquired 2.646ha in Bukit Tinggi, in December 2019 for RM55 million to develop the project.

"The focus currently is on selling the remaining unsold units within its existing development. The company is also looking to acquire more land to expand its property development division to improve future earnings," said the source.

Crest Builder's income is mainly derived from four segments — construction, property development, property investment and management, and concession arrangement.

For the fourth quarter ended December 31, 2019, the property development division’s revenue and pre-tax loss amounted to RM200,000 and RM5.8 million respectively as compared to the corresponding fourth quarter of the preceding year of revenue of RM49.2 million and pre-tax profit of RM12.6 million.

In a Bursa filing, Crest Builder said the decrease in revenue and the increase in pre-tax were mainly due to the completion of its Batu Tiga Phase 2 (Residensi Hijauan) project in Shah Alam, in the first quarter of 2019.

Crest Builder expects with the recent acquisition of land in Bukit Tinggi, this will make a positive contribution to the company going forward.

In terms of investment properties, Crest Builder has The Crest, located in Seksyen 19, Petaling Jaya and Tierra Crest, which is in Kelana Jaya. Both properties are receiving RM8 million and RM9 million yearly rental respectively.

The investment division recorded revenue of RM2.6 million and a pre-tax loss of RM700,000 as compared to the corresponding fourth quarter of the preceding year of RM4 million and RM2.4 million respectively. The decrease in revenue and pre-tax loss were mainly attributable to the decrease in the occupancy rate of certain investment properties.

No changes to earnings forecast

AmBank Group Research (AmBank Research) is making no changes to its FY20–FY22 earnings forecasts for Crest Builder's property development division at this juncture, taking into account the scheduled launches this year.

In a note yesterday, the research house said during a recent engagement with Crest Builder, the management updated analysts on its latest development and the impact of the MCO and Covid-19 to the company's business.

Crest Builder said, for the property development division, Latitud8 and the development in Kelana Jaya are scheduled for launch this year and in 2021, respectively.

AmBank Research had earlier cut the company’s FY20–FY21 earnings forecast by 6.8 per cent to reflect the impact of the MCO and its spillover effects on the economy, which may result in lower revenue recognition.

“We believe the company's medium-term outlook is positive, anchored by several construction wins in the past few months while the upcoming launches will be among its major earning contributors beyond FY21,” it said.

AmBank Research said what Crest Builder will need to do is to increase their work shifts to clear its backlogged work (construction division) due to the MCO.

According to the firm, the progress of Crest Builder's construction projects is between 10 to 15 per cent ahead of schedule on average before the introduction of MCO.

Source

The Crest, 3 Two Square. =)

The view of my office. =P

The CNY Lion Dance performance at 3 Two Square.

The Kee Ling Kok Lion Dance Association was engaged to perform - for the 3rd year running for our Chinese New Year celebrations on the 25th February 2010. Although it was raining on Thursday afternoon, we shifted the performances from the Boulevard to the ground floor of the Corporate Tower.

The start of the performance.

The performances started with a prayer session first - after which they then shifted onto the Ground Floor lobby for their 'stilt stunts'.

At the stilts.

The lions were jumping and almost 'flying' - doing an array of stunts on the high stilts.

The ground fight.

The 3 lions had a 'good fight' to impress the boss - and then handed over the tray of goodies - a symbol of prosperity and good luck.

A Shopaholic's Den Birthday Bash.

While most people were celebrating Wesak Day yesterday, many youngsters came by to 3 Two Square to come check out the event that was held at the Ground Floor of our Corporate Tower at The Crest. It was the 'A Shopaholic's Den Birthday Bash'!

There were almost 100 stalls featuring clothes and accessories - mostly for ladies, especially students and the teenagers (judging by the fashion type). In this tough economic situations, there are many of these warehouse sales and jumble sales, practically week in and week out.

In fact, on our part, we're also scheduling more warehouse sales at the Ground Floor to create more awareness of the public of 3 Two Square. Next up, the handphone fair.

The banner.

For more pictures, check out the 3 Two Square blog.

3 Two Square in the news.

I was reading through an article by Mr S C Cheah today in The Star entitled "Freebies galore as developers push sales" and funnily, there was a sizable picture of 3 Two Square. (note below) However, after reading through the entire article - but there was no mention on Crest Builder or 3 Two Square at all.

In challenging times like this, many developers must be suffering quite badly I assume. According to Cheah, generous freebies and incentives are also thrown in to push the sales. But so far, its been the 'big boys' who are doing so.

I saw a huge advert near Centrepoint at Bandar Utama the other time - a well known developer is offering a "Guarantee Buy-Back" option. This is a very interesting offering - bearing in mind the market conditions are tough, and property buyers and investors might be taking a very safe stand as to purchase or not to purchase. In this case, the cash buyers would look at it as a safe approach - hence make their moves.

With this kind of offers, I think there will be a certain amount of buyers and consumers who may come out of their hidings and make some purchases. But most others may still take a safer stand and wait before anything happens.

Lets see how the year ends and see what 2009 has to offer.

NKF Colourful Fun & Food Fair at 3 Two Square.

Today, the Crest Builder Holdings Berhad Group and the National Kidney Foundation organized a charity event at the boulevard of 3 Two Square. The Guest-of-Honour was of course, the Member of Parliament for PJ Utara, YB Tony Pua.

YB Tony Pua giving his speech.

The event is officially open!

At our booth with YB Tony Pua.

The mobile Healthcare check centre.

*updated*

For the benefit of the Chinese readers, here's a press release in the Sinchew.

Fire Drill at The Crest.

Yesterday, one of our tenants decided to conduct a fire drill on their staffs and employees. Novartis, our tenants at Level 15 and Level 12B, decided to conduct the private fire drill for their internal records.

The assembly at the valet car park area.

On our part, we have scheduled for a full fire drill exercise sometime in December 2008 or January 2009. This is when our blue chip tenant Celcom Malaysia would have fully shifted in Level 5, Level 6, Level 8, Level 9 and Level 10.

Pappa Rich Opens.

Yesterday was yet another great day.

Apart from the 08.08.08 Olympics opening ceremony, the Pappa Rich Kopitiam also opened at 3 Two Square - bringing a new level of competition for the kopitiams at 3 Two Square. Hence now, in terms of drinking places, we have 2 Kopitiams, 1 coffee house, a Nasi Kandar mamak and also a food court!

Mmm the smell of coffee is just so good...

Delicious fresh Hainanese bread...

Tasty looking nasi lemak...

This is bad. I'm going to get fatter.

Gong Xi Fa Chai!

Today we celebrated Chinese New Year with a bang!!! We roped in 3 nos of 'lions' to come and perform at the Boulevard at 3 Two Square. Soon after the performance at the boulevard, they came up to the lobby of the corporate tower - and then headed to the Penthouse. I'm pretty sure that those who witnessed the performances were impressed!

Gong Xi Fa Chai!

Crest Builder - MBAM Social Night!

Last night, CB was the main sponsor and organizer for the December session of Master Builders' Association Malaysia's Social Gatherings/Nights. The event was a pretty good one - held at the Ground Floor of The Crest at 3 Two Square. Those who graced the night included the members of the MBAM, staffs and employees of the Crest Builder Group as well as the special guests of the night, Porsche Club of Malaysia.

No rock bands or head banging DJs. It was traditional music all night long.

Speech by MBAM's Vice President and a good buddy of mine, Matthew Tee.

Matthew wowing the audience.

Porsches to lighten up the night!

Novartis at The Crest.

We recently secured a big multi-national corporation for the Corporate Tower. They are truly huge, in fact, one of the larger blue chip conglomerates in the world.

Novartis International has taken up 2 entire floors at the Corporate Tower at 3 Two Square, comprising over 20,000 sf of office space. They are scheduled to move in next month, whereby its renovations are undergoing currently.

Novartis is considered to be one of the largest pharmaceutical corporations in the world. Their major divisions include pharmaceuticals, vaccines and diagnostics, Sandoz as well as consumer health. Their geographical dominances covers a span of over 140 countries.

First Restaurant in 3 Two Square.

Today was the grand opening of Home Delights Restaurant; they opened at the Ground Floor of Lot C-13. Our office havent shifted in yet, but will be soon enough by December. I think Home Delight has became the trendsetter for more tenants and restaurants as well as any other outlets to come by.
HOME DELIGHTS Restaurant opens at 3 TWO SQUARE! Featuring a unique array of traditional home recipes and home style cooking, Home Delights offers a fresh and lively environment and ambience to cater to the food lovers from all ages!

This picture was taken from its website. This is the delicious Hot & Sour Vinegar Pork Knuckles.

Look at those juicy meat! Makes you feel hungry just from the pictures!

Restoran Home Delights

C-13-01, 3 Two Square,

No 2, Jalan 19/1, 46300 Petaling Jaya

Tel: +6017-2377 550