E&O Property Development and E&O Berhad has been making headlines recently with their property play. iProperty.com speaks to Ms Lim Hooi Yen, general manager, marketing and sales for E&O, to get an update on property development and luxury properties.

iProperty: Please share with us the ongoing developments that E&O has and what are your expectations on these projects?

Lim: E&O Property Development, a subsidiary under Eastern & Oriental Berhad has just launched St Mary Residences serviced suites targeting international home buyers from Hong Kong, Japan, Singapore and the United Kingdom. Response has been positive and this can be attributed to location as it is perched on a secluded hilltop in the heart of Kuala Lumpur’s Central Business District area, just eight minutes walk from the city’s landmark Kuala Lumpur City Centre (KLCC). St Mary Residences’ design is styled after Manhattan’s iconic loft apartments and comes fully furnished with air-conditioning, built-in wardrobe units, fully-fitted kitchen cabinet system and appliances. St Mary Residences offers attractive pricing at below peak prices plus interest absorption scheme and attractive loan package. Buyers need only pay 10% cash upfront with no further payments needed till the TOP date in 2012 – the developer will absorb the loan interest that is accrued during the construction period. Rental yield is expected to be between 5-6%.
 
In Penang, at E&O Property Development’s Seri Tanjung Pinang development – the largest and only city international-class masterplanned seafront development in Malaysia – work is geared towards the launch of Quayside Resort Condominiums slated for January 2010. Quayside will be part of the Seri Tanjung Pinang enclave that caters to an international audience of prospective home buyers from the Asia Pacific region. Occupying 196,000 square feet in site area, this first-of-its-kind in the region seafront water-themed tropical resort condominium boasts one of the largest one-bedroom units at 1,135 square feet. Quayside Resort Condominiums offers an unobstructed vista of the Andaman sea and the Straits of Malacca, and is close to international schools and beach resorts. Home buyers will enjoy low upfront cash commitment and access to world-class medical facilities. When completed, Seri Tanjung Pinang will join an international list of iconic waterfront communities including The Palms in Dubai, Australia’s Sovereign Islands and Sentosa Cove in Singapore.

iProperty: E&O is raising funds for upcoming launches. What are these projects?

Lim: E&O’s recent rights issue of irredeemable convertible secured loan stocks (ICSLS) received overwhelming response, achieving an oversubscription of 2.9 times above the minimum subscription level. A total of RM236 million was raised from this exercise. The funds raised from this exercise will be used as working capital for on-going and future development projects; for possible strategic mergers, acquisitions; and/or for repayment of bank borrowings. Significantly, this additional capital further fortifies the Group’s financial position to forge ahead with its strongly-branded development projects and also allows the Group to be on the best footing to capitalise on new opportunities.

iProperty: How does the group plan to entice foreign investors for your premium properties?

Lim: We have a tried and tested marketing strategy that has worked successfully for our past launches which we will continue to employ for our present and future launches. This includes extended publicity campaigns covering regional advertisement placements, road shows in key gateway cities, which in the case of St Mary Residences and Quayside Resort Condominiums will include Hong Kong, Tokyo, Singapore and London, as well as an active press relations programme with mainstream and online media.
 
iProperty: In your opinion, what are the key traits of E&O luxury properties that make them desirable to your customers?

Lim: E&O luxury properties are located in prime locations in key gateway cities in Asia. Design and layout embody practicality and usability whilst retaining the luxury factor. This format of building top-end suites appeal to discerning local and international home purchasers who in turn enjoy fixed rental income from leasing out their apartments to expatriates. In all, E&O’s residential developments have proven good capital upside track record.

iProperty: How has customers feedback influenced E&O’s property development strategy?

Lim: E&O has always fostered strong customer relations and this includes ensuring prospective home buyers and all of E&O’s home owners easy, available access for feedback and discussion with E&O’s management, operations and marketing teams. This steady stream of customer feedback has given E&O a successful, working blueprint to tailor-design and build facilities and amenities to ensure top line marketability and significant brand placement for each of E&O’s luxury developments to the international home buying audience, and to great take-up rates.

iProperty: E&O’s property developments are mostly in the Klang Valley and Penang island, are there any plans to venture abroad?

Lim: E&O is always open to viable opportunities to take the brand to the next level, both locally and abroad. Presently, we are focusing on our sizeable prime landbanks in the Klang Valley and Penang where collectively we have RM4 billion worth of properties to launch over the next two years.

iProperty: What is E&O’s outlook for the luxury property industry for 2010?

Lim: The luxury residential real estate sector is expected to continue to thrive and see launch and resale prices climb at a steady pace. Gateway cities in Asia such as Hong Kong, Tokyo and Singapore should see prices spiralling upwards as well as launch units getting smaller in size with launch per square foot prices not abating. Malaysia especially Kuala Lumpur as the capital city provides excellent investment opportunities as prices will still be below peak as compared to the region and the exchange rate will be the key deciding factors for overseas buyers to park their money in Kuala Lumpur. E&O’s luxury developments bank on quality fittings and finishings and together with our prime locations in Kuala Lumpur (Kuala Lumpur City Centre) and Penang (waterfront development adjacent to Gurney Drive) guarantee capital appreciation and good rental yield for the long-term.