ISSUE 6, MAC/APR 2013

SOUTH KOREAN PROPERTY MARKET - TIME TO TAKE A LOOK?

S H O P P I N G C E N T R E O F T H E F U T U R E

CROSSRAIL BOOSTS LONDON HOUSE PRICES UP TO 40%

SOUTHEAST ASIAN ART PAVES WAY AT HB’S 5TH AUCTION

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In the 2002 science-fiction movie Minority Report, Tom Cruise character walked through a shopping mall with a row of digital billboards that displayed holographic advertisements that greeted him by his name and offered products that appealed directly to him. When he stepped into a GAP store, a big screen with an image of a woman recalled his recent purchases. Such futuristic technologies are now a reality! Japan tech giant NEC has developed digital signage with built-in cameras that identify shopper’s age and gender when he/ she walks past it. The display signage will then suggest products and services it thinks will appeal to the shopper based on his/ her demographics. This technology is currently been tested in shopping areas in Japan.

Future Trends of Shopping Centre Visiting shopping mall is not just buying goods and services; it is also a leisure activity among Malaysians. Shopping is now a recreation, not a chore. Exciting visual shopping features, free-for-all public space, environmental-friendly facilities, real-time parking channel, retail locator app, and mobile concierge will be some of the common features available at our shopping malls in the near future.

Exciting Shopping Experience Shopping malls of the future will offer exciting visual shopping experience from both outside and inside. They will offer unique architectural features and interior design.

Bull Ring Shopping Centre in Birmingham, United Kingdom was completed in 2003. This impressive 4-storey shopping mall has a total retail floor area of 1.3 million sf. It is anchored by Selfridges, Debenhams and TK Maxx. The main façade of this shopping mall is clad in 15,000 shiny aluminium discs that were inspired by a Paco Rabanne sequinned dress. A multi-storey car park connects the shopping mall with a 37m, curved polycarbonate-covered pedestrian bridge known as the Parametric Bridge.

Kanyon is an ultra-modern shopping mall located in Istanbul, Turkey. Opened in 2006, it has a nett retail floor area of 400,000sf. The exterior architecture of this shopping mall looks like an inverted building. At the inside, the retail walkways curve in the shape of a canyon.

SOHO Galaxy in Beijing, China was completed in 2012 with 900,000sf of retail space spread over 3 floors. The entire building (with office above) comprises of five continuous flowing volumes, set apart yet linked by a sequence of stretched bridges. Each volume adapts outwards, generating a panoramic architecture devoid of corners.

Namba Hips in Osaka, Japan opened in 2007. It is an entertainment complex that has a big hole at the centre of the 10-storey building that resembles a natural number 8 or a violin. This unique architectural building houses cafes, restaurants, pachinko centre, bars, golf studio, spa, an open rock climbing wall and an outdoor free-fall thrill ride.

SHOPPING CENTRE OF THE FUTURE By Tan Hai Hsian, Henry Butcher Retail

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Non-Retail Facilities Non-retail facilities are not uncommon in shopping centres. Cineplex, bowling alley, futsal centre, badminton court, fitness centre, post office, bank, etc. are found in many shopping centres today. However, the offering of FREE non-retail facilities is either none or limited in Malaysian shopping centres.

Osaka Station City is an integrated transport hub located in Osaka, Japan. It consists of a multimodal transport centre, shopping malls, hotel and office buildings. On the 10th and 11th floor of this mega structure, there are two public terraces (called Healing Garden and Wind Plaza) offering green spaces, seating area and a beautiful view of

Osaka city. These are the dining area and resting places for office workers during lunch hours. At the rooftop, it has a sky farm named Tenku no Noen. This green area is planted with various vegetables, herbs and fruits. Vivo City is the largest shopping mall in Singapore. It has a large, knee-deep splash pool on the rooftop called Sky Park. It also has an open-air wet and dry children playground at Level 2. White Sands shopping centre in Singapore has a community library on the fourth floor. This rental library is operated by government-owned National Library Board. The library offers 120,000 books and magazines to the 150,000 of population living nearby.

Rouse Hill Town Centre in Sydney, Australia has a community garden for the residents living in the neighbourhoods. This is a partnership with a not-for-profit organisation Stephanie Alexander Kitchen Garden Foundation in 2011. This shopping centre also has a library and community centre.

On the rooftop of One Utama shopping mall in Selangor, it has a 30,000sf garden with more than 500 species of plants and flowers. Named as The Secret Garden, it was opened in 2009 with limited publicity.

More Eco-Friendly Facilities Atrio is a 416,000sf shopping mall located in Villach, Austria. Opened in 2005, it is one of the greenest shopping centres in the world. The shopping mall used the earth beneath it to generate heat during the winter and power air-conditioning during summer. The shopping mall is equipped with a geothermal heat supply system based on the exploitation of 652 borehole pillars that bear the foundation of the whole structure through which heat is collected from the soil. These ‘energy pillars’ help to save almost half of the electricity it needed to run the shopping mall. Atrio, the building, is also constructed with eco-friendly materials. The first eco mall in Singapore, City Square Mall, has a 49,000sf urban park in front of its shopping centre. It is also equipped with rainwater harvesting system for non-potable uses, motion-sensor car park, twin-chute pneumatic refuse collection and disposal system, charging stations for electric cars and solar panels to power selected area of the mall. Setia City Mall in Selangor introduces extensive environmental-friendly features. Light censors are installed to provide sufficient lighting when the external natural light reduced. It uses energy-saving light fixtures including LED, TF fluorescent lamps and ceramic metal halide bulbs. Rainwater from the roof is flowed into tanks and used in watering plants. Tenants are also required to sign a green lease that requires them to minimise wastage and uses sustainable products in their shop designs.

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Greater Use of Mobile Devices Malaysians will soon be able to use their smart phones to search for empty car park lots in shopping malls. In addition, they can locate empty car park lots near to the shops they want to go. From their smart phones, they can receive latest promotions from their favourite shops and restaurants. They can also compare prices of the same products from different stores within a shopping mall. Furthermore, they can reserve tables at their favourite restaurants and purchase movie tickets from a cineplex in a shopping mall via their smart phones.

Mall of America, the largest mall in United States, introduced 3 ways to inform shoppers in real time on the parking situation within its mall. With more than 12,000 car parking lots in Mall of America, its shoppers can use Twitter and mobile web app to check on the car volumes at specific parking areas and levels. Prior to arrival at the mall, it installed 6 hybrid way finding signs at various freeway locations leading

to the mall. These signs advise and assist drivers in finding the least congested way to reach the shopping mall. Point Inside provides a mobile shopper engagement platform that uses multiple indoor location technologies to provide retailers with micro-location marketing and private advertising network capabilities. Point Inside has an app containing more than 1,600 indoor maps and geo-location cross-retailer product search for malls and big box stores. This app helps shoppers to locate retail stores in shopping centres. ShopSavvy is a mobile application for shopping that scans products and finds online and local stores providing these products. While browsing a item in a shopping centre, a shopper is able to use this app to check on prices of similar items found in other stores within the shopping centre. In addition, it can read users’ reviews and compare prices offered by online stores. In 2011, the largest cinema operator in Malaysia, Golden Screen Cinemas (GSC), introduced a mobile app that allows moviegoers to purchase tickets and select seats through their smart phones. While in shopping centre with GSC cineplex, shoppers can book their show tickets before show times without queuing at the ticketing counters. Last year, Sunway Pyramid shopping mall in Selangor launched its mobile app with car park locator, retail outlet navigator, shopping directory and information on latest events and promotions. This app assists shoppers to find their cars and shops as well as view the latest promotions and events.

Brick-and-Mortar Shops Not Disappearing Soon We will continue to return to the shopping centres because of the mall experiences that cannot be found elsewhere. These experiences cannot be duplicated online. Brick-and-mortar shopping centre will not disappear any time soon. Advanced technologies, better architectural presentation and enhancement of offering will continue to draw consumers back to shopping centres. Smart phones will be playing a major role in enhancing the shopping experience in retail malls.

Successful shopping centres of the future will be those that are able to integrate modern technologies with its tenants, provide unique physical environment as well as offer many public facilities to keep shoppers longer. Malls of the future will not only generate sales, but also create products, generate energy and provide education!

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With the conquest of the world music scene by Korean rapper, Psy’s monstrous hit, Gangnam Style in 2012 and now with his latest hit, Gentleman, South Korea looms large in the consciousness of the world. The first Korean wave came in the early 2000’s in the form of Korean dramas such as April Snow and Winter Sonata featuring Korean heartthrob BYJ (Bae Yong-Joon) and Jewel in the Palace featuring sweetheart, Lee Young Ae. This was followed by the the K-Pop phenomenon in the early to mid 2000’s when the Hallyu wave brought in idols such as BoA and Rain and boy / girl bands such as Super Junior, Big Bang, 2NE1, Girls Generation, 2PM, Wonder Girls and Kara, with their youthful, good (albeit cosmetically enhanced) looks, catchy tunes and sexy dance moves. The spread of the K-Pop culture was greatly aided by social media such as YouTube, twitter and facebook. The worldwide popularity of the K dramas and K pop acts led to a surge in interest in anything Korean and the tourism industry in South Korea benefitted as a result, as did Korean cuisine with its ubiquitous kim chi as well as Korean fashion.

Jeju Island which was the filming location for several K dramas including the wildly popular series Jewel in the Palace became a pilgrimage destination of sorts for fans of the movie stars.

The spread of South Korean influence is not only restricted to its culture. South Koreans have also been actively investing in real estate abroad. In the second quarter, of 2012, it was reported that South Koreans bought about USD$53.7 million worth of real estate overseas compared to USD$50 million in the first quarter. This, however, pales to the situation before the financial crisis of 2008. Statistics show that in 2007, South Korean investors snapped up USD $874 million worth of foreign real estate but the investments dropped to only USD $438 million in 2008 and USD $201 million in 2009. A slight pick-up was noted in 2010 when investments increased slightly to $251 million in 2010 but remained almost unchanged at $253 million in 2011.

SOUTH KOREAN PROPERTY MARKET – TIME TO TAKE A LOOK? By Tang Chee Meng, Henry Butcher Marketing

Korean ubiquitous – K drama, K pop, Kimchi and lately, the sensational

self-made millionaire rapper Psy.

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*The Berjaya JejuAirest City project, which has a total gross development value of US$3.2 billion is a 74.4ha integrated resort

located by the coastline of Yerae-dong, Seogwipo City in Jeju Province. Once completed, the site will boast of a 45-storey

Landmark Tower, a casino hotel, a massive retail and shopping

mall, a medical centre and entertainment and sports facilities.

Malaysia, too, saw a wave of Korean interest in its property market in the 2007/8 period with several enbloc deals with Korean investors being announced by a number of Malaysian developers. However, the subsequent slowdown in the Korean economy following the global financial crisis in 2008 led to quite a few of these deals being aborted when the Korean enbloc buyers found that individual Korean investors have lost their appetite for international real estate investments. With the heightened consciousness of South Korea on the world stage, it is no wonder then that when the Korean government liberalized the country’s real estate sector in a bid to revive the market after the Asian financial crisis of 1997/8, foreign investments in South Korea’s real estate sector took off. The amount of South Korean land owned by foreign entities, including foreign-invested companies, was reported to have increased to 224.71 square km by the end of June 2012, based on information provided by the Ministry of Land, Transport and Maritime Affairs whilst the number of properties owned by foreigners has risen to 82,729 properties worth approximately KRW 33.5 trillion (USD$29.9 billion) in the April-June 2012 period. American ccompanies and individuals are the leading foreign land owners, accounting for about 54.2% of total foreign land ownership, followed by the Europeans and Japanese with 10.5% and 8.5% respectively. Approximately 59.2% of foreign owned land was either forest or farmland, whilst industrial land made up about 29.9%. How about Malaysian interest in the Korean property market? Apart from a resort project being undertaken by the Berjaya group on Jeju Island*, it is very rare to read of Malaysian real estate developers or investors taking an active interest in the Korean property market. This is despite increasing trade between the two nations over the past few years. According to Secretary-general of the Asean-Korea Centre, Chung Hae Moon,the trade volume between

Malaysia and South Korea has increased to US$17.6bil last year from US$16.7bil in 2010 whilst South Korea's investment in Malaysia between January and September last year was US$244mil, a two-fold increase from the same period a year ago. Although Malaysia has, over the past few years, emerged as an important market for property developers from Singapore, London and Melbourne, Korean real estate has never really been promoted to Malaysians. The lack of familiarity with the market besides the language barrier, have been key factors why Malaysians do not take an interest in the Korean property market. Are there strong reasons now to take a look at the market? Perhaps, it is time to do so as the Korean administration under the newly elected President, Park Geun Hye, has unveiled several measures to stimulate the country's property market, as part of overall efforts to improve the faltering economy. South Korean housing sales are at the lowest levels since 2006 as housing sale transactions fell 14% to 47,288 units in February whilst prices slid. Home prices in Seoul are lower than at any time since March 2008. Demand has

slumped after mortgage-lending restrictions were rolled out over the past decade to prevent asset bubbles from building up and as pessimism over valuations increased because of the global financial crisis. Reviving the housing market will be one of the key policies for the new government as falling home prices can send household debt out of control. Under the new policies, first-time home buyers will now be allowed to borrow more at a lower interest rate from a government administered fund whilst home buyers in general will be exempt from capital gains tax for the next five years if the home that they purchase is worth not more than KRW909 million (RM 2.49 million). In this regard, the current capital gains tax is between 6 % and 38 % so this represents a significant saving for those planning to sell their home within the next five years. This may be the spark needed to revive the Korean residential property market.

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Source: Global Property Guide

House Price Change % change over a year earlier

House Purchase Change

% change over a quarter

Housing Purchase Price Index

(June 2011=100)

For those who are considering investing in the Korean property market but are not familiar with the property scene there, there are a few important things that you should take note of. NB: the following are not meant to be a comprehensive guide.

Property Tenure/Ownership Property tenure/ownership in South Korea is based on the following:

Fee simple or freehold title (similar to Malaysia)

Strata title – Sub-division of air space to provide the equivalent of freehold ownership on a floor-by-floor basis. (similar to Malaysia)

Leasehold – Short-term nature. (land is rarely leased).

Land: Maximum lease is 10 years with possible extension for a further 10 years.

Commercial buildings: Essentially for 12 months, but can be for 3 to 5 years.

Housing (government-built apartments): For ‘long-term housing’, the minimum lease term is 5 years. For ‘permanent rental housing’, the minimum term is 50 years.

Regulations Governing Foreigners 1. Foreigners who are resident in South Korea Foreigners who plan to buy property in South Korea are subject to the Foreigner's Land Acquisition Act and the Real Estate Registration Act. The foreigner must report the purchase transaction to the appropriate district office, ie. theSi/Gun/Gu office, within 60 days of signing the contract to purchase the property. Once the buyer pays the whole purchase price, the registration of the transfer of ownership must be completed at the registry within 60 days of the date of payment of the balance of the purchase price.

2. Foreigners who are not resident in South Korea Non-resident foreigners buying property in South Korea must similarly abide by the Foreigner's Land Acquisition Act and Real Estate Registration Act as well as Foreign Exchange Transactions Act. They have to provide documents certifying their residency in the foreign country with proper authentication. Non-resident foreign investors bringing capital into South Korea to buy property must report the transaction to a foreign exchange bank by submitting a copy of the property sale & purchase agreement, an appraisal report, and a certified copy of the property registration. They must report the transaction to the appropriate district office, ie.theSi/Gun/Gu office, within 60 days of signing of the sale & purchase agreement. Once the balance of the purchase price is settled, the buyer must complete the registration of the transfer of ownership at the registry within 60 days with a registration number issued by the appropriate immigration office and a certified copy of the land acquisition report and a copy of his passport.

3. Registration of title The purchase of the property is legally secured via the official registration. In the event that there is a title defect after registration, the rightful owner can recover the property title through civil procedures in a court of law.

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Almost 90% of the land in South Korea is mountainous, meaning that the 50 million over Koreans have had to use space ingeniously to make room for everybody. By far, the most popular type of housing in South Korea is the

apartment, and Koreans see the “apatu” much like Westerners see the single-family house with white picket

fence and private lawn. For this reason, there has been a housing boom in

South Korea as speculators build more and more apartment blocks. Renting

apartments in Korea can be expensive, with equally high housing deposits.

Apartments are usually stacked above one another in identical blocks that can

be found throughout the country.

4. Payment The buyer can make payments by way of a cashier's cheque issued by a bank or by telegraphic transfer. In South Korea, personal cheques are not usually accepted but cashier's cheques, which are guaranteed by the issuing bank are accepted.

5. Property related taxes There are three types of taxes related to property as follows: 5a. Purchase-related taxes Stamp duty is levied on the preparation of documents and account books that certify the establishment, transfer, change or lapse of rights to property. It ranges from KRW 100 to KRW 350,000.In general, the acquisition of real estate is also subject to the following taxes:

Acquisition tax: 2% of purchase price

Special tax for rural development: 10% of acquisition tax

Registration tax: 2% of purchase price

Education tax: 20% of registration tax

Value added tax: 10% of purchase price for building (corporations will be reimbursed)

Purchase of National Housing Bonds (NHBs). In the case of an FDI company, the NHB purchase requirement shall be reduced according to the FDI ratio of the company. Where the acquisition of real estate is by an FDI company undertaking an advanced technology and services business supporting the domestic industry or by an FDI company located within an FIZ, the acquisition, registration and property taxes shall be reduced according to the sum of the calculated tax, multiplied by the FDI rate by 100% for the first 5 years and 50% for the following 3 years. The period and ratio of reduction may be extended by 8 to 15 years in accordance with ordinances of local governments. In the case of construction permission and real estate registration for a building of an FDI company, the duty of purchasing NHBs shall be reduced.

5b. Possession-related taxes Property tax must be paid on each property owned if the total value of all the owner's properties in South Korea is over KRW 600 million or KRW 900 million if the property is owned by one family. Taxes that are to be paid for the holding of real estate include: Property tax

Building: 0.25-4% of the building value (taxation standard price determined by the government)

Land: 0.07-4% of the official land value (taxation standard price determined by the government)

Aggregate real estate tax: 0.6-4% of the property value as determined by the government

Regional education tax: 20% of property tax/aggregate land tax

Special tax for rural development: 20% of aggregate real estate tax

In the case of construction or expansion of factories in an overconcentration control region, property tax shall be imposed at a multiple of five times the standard rate for five years. Property tax shall be reduced for advanced technology-related business or businesses located in a Foreign Investment Zone (FIZ).

Those engaged in the leasing business shall pay a value added tax of 10% of the rent and a corporate tax (13% or 25%) or an individual income tax (8-35%) on income generated from the leasing transaction.

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5c. Transfer-related taxes This is a form of capital gains tax. Individuals pay transfer-income tax based on the difference between their original purchase price and the subsequent sale price of their properties. Corporations pay transfer-related taxes through their corporation tax. Stamp duty is levied on the preparation of documents and account books that certify the establishment, transfer, change or lapse of rights to property. It ranges from KRW 100 to KRW 350,000. Taxes to be paid for the disposal of real estate are as follows:

Value added tax: 10% of the sale price of the building

Individuals

Transfer income tax: 8 – 35% of capital gains

Inhabitant tax: 10% of transfer income tax Corporations

Corporation tax: 13% or 25% of capital gains (NB: The gains generated from the transfer are included in non-operating profits and are thus subject to corporation tax)

Inhabitant tax: 10% of corporation tax The surcharge on transfer income tax shall be increased by 60% when an individual transfers without filing a registration with the authorities.

6. Value added tax/goods and services tax (‘GST’) A standard 10% value added tax is levied on all goods and services except for specified exempt goods and services, including:

Unprocessed foodstuff

Certain professional services

Banking services The following goods are zero-rated:

Goods and services for export

Services rendered outside South Korea

International transportation

Other goods or services supplied for foreign exchange earnings

7. Tax depreciation Generally, expenses which are incurred for business purposes and adequately documented are allowed for tax purposes. For buildings and intangible assets, only the straight-line method of depreciation is allowed. Corporations must notify the tax authorities of the depreciation method adopted. Depreciation allowed under the CITA is deductible only if the amount is recorded in the appropriate accounting records and reflected in the official financial statements.

8. Corporate taxation Corporations are classified as ‘domestic’, ‘resident foreign’ and ‘non-resident foreign’ for tax purposes:

Domestic corporations – these are corporations with their head office located in South Korea, regardless of the place of incorporation. Such corporations are subject to corporate tax on their worldwide income.

Resident foreign corporations – these are corporations whose parent company is not incorporated in South Korea and they are only subject to corporate tax on their income generated in Korea.

Non-resident foreign corporations – these are corporations without a permanent establishment in South Korea and are subject to a withholding tax on their income generated within Korea.

Corporate income tax is levied on a sliding scale.

9. Personal Taxation For income tax purposes, all individuals are classified as ‘citizens’, ‘residents’ or ‘non-residents’. South Korean citizens or resident individuals are subject to an income tax on their worldwide income. Non-resident individuals are subject to an income tax only on income derived from sources within South Korea, unless a bilateral taxation treaty stipulates otherwise. (Malaysia has a bilateral tax agreement with South Korea). A person is considered to be a resident if his or her occupation requires a continuous residency in South Korea for a year or more. Taxable income derived by individuals is grouped into four categories:

Global income, which includes salaries and wages, termination payments, interest, dividends, rental income and income derived from business and other sources

Severance payments

Capital gains from the sale or transfer of property and shares in unlisted companies

Income from forestry Individual income is subject to global and scheduler taxation. ‘Global income’ denotes income that is subject to global taxation at the following tax rates: Under scheduler taxation, severance payments, capital gains and forestry income are taxed separately at varying rates. ____________________________________________________ The information herein is believed to be correct at the point

of publication of this article. However, we do not vouch for

the accuracy of such information and shall not be held liable

in any way to any party relying on such information.

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The ten-car trains will run at the frequencies of up to 24 trains per hour (tph) in each direction through the central tunnel section, providing high frequency, safe and comfortable journey. During peak times, up to 78,000 commuters will be able to travel every hour.

Crossrail, a new railway linking Maidenhead and Heathrow in the west, to Shenfield and Abbey Wood in the east, was introduced in London in 2008. It is the largest addition to London’s public transportation system since World War II. The 118 km railway is currently under construction and the central section is estimated to be completed by the end of 2018

1.

Crossrail - Central Section The central tunnels run from a portal just west of London Paddington station to Whitechapel, with further tunnelling to Stratford and to Canary Wharf.

Paddington (additional facilities)

Bond Street (additional facilities)

Tottenham Court Road (major reconstruction)

Farringdon (additional facilities) – also connects to Thameslink and Barbican

Liverpool Street (additional facilities) – also connects to Moorgate

Whitechapel (additional facilities)

Currently, property prices within a 10-minute walk of central London Crossrail stations have risen by more than 30% since the Crossrail project was announced in 2008. The planned Crossrail project is poised to lift the value of residential properties within a 10-minute walk of new Crossrail stations by an average 9% above normal home price growth in London by 2018, according to new research

2.

1Transport for London website, May’13 2Knight Frank Report 2013, London Hotspots

CROSSRAIL BOOSTS LONDON HOUSE PRICES UP TO 40 per cent By Feng Wai Chia, Henry Butcher International Marketing

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Architects impression image shows a cross section view of Canary Wharf

Crossrail station. Canary Wharf will be one of the largest Crossrail stations,

to be built in the North Dock water of West India Quay. The station and

proposed retail and park areas will be

six storeys high.

It was critical that Crossrail gets the internal design of stations right as the new stations have been designed to last for the next century. Taking into consideration that around 200 million passengers will travel on Crossrail each year and the route will provide a 10% increase to rail capacity in the capital. The design incorporates retail components in most of the stations in the Central Section with easy underground access to current operating tube lines. It will also support the delivery of over 57,000 new homes and 3.25 million square metres of commercial space. Significant property investment could take place at locations including Canary Wharf, Whitechapel, Liverpoool Street, Farringdon, Abbey Wood, Custom House, Ealing Broadway, Southall and Woolwich.

Traveling to Airports in London via the Crossrail The Crossrail, together with the Thames Link Rail (another new British railway system running 225 km north to south through London from Bedford to Brighton, serving both London Gatwick Airport and London Luton Airport) will lessen travelling times to the major airports in London.

Popularity of Developments Surrounding the Upcoming Crossrail Stations In Q1 2013, properties surrounding future Crossrail stations such as Canary Wharf and Whitechapel have sold very well in launches overseas and in the UK with up to 90% of the apartments in a particular development being snapped up in less than a month. In May, Henry Butcher International Marketing will be launching an exhibition for Lincoln Plaza, a highly anticipated project by Galliard Homes that is located nearby Canary Wharf Station. The earlier completed phase adjacent to this block being launched has achieved up to 7% in rental yield.

Residential prices around Canary Wharf are expected to increase by 40% over the next five years, according to Jones Lang LaSalle latest report.

Image: The Telegraph

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KUALA LUMPUR - An enthusiastic crowd of over 500 were present at Henry Butcher Art Auctioneers’ fifth sale on Sunday, 21 April 2013 which concluded a strong total of RM3,451,140, well beyond the pre-sale estimates of RM1.9 to RM2.7 million. With such positive response, the auction attained outstanding results with 99% lots sold and 72.5% were sold above higher estimates.

“We are extremely delighted to witness energetic bidding across the saleroom that

contributed to the vibrant atmosphere this afternoon.

This is by far the best crowd we have ever seen!”

“HBArt’s first endeavour to introduce Southeast Asian art into the market has proven a great success with all 11 Indonesian works sold above the higher estimates. We are also pleased to see new interest from collectors locally as well as from overseas. This new venture to penetrate the regional market is

aimed at promoting and presenting Southeast Asian art to Malaysian collectors and Malaysian art to counterparts abroad,” said director of Henry Butcher Art Auctioneers Mr. Lim Eng Chong. The Southeast Asian art segment contributed to the excitement in the bidding room with Sudjono Abdullah’s Market Scene setting the highest record percentage of 523.3% above higher estimate, sold at RM37,400. Koempoel Soejatno’s Countryside dated 1972 fetched a smashing RM17,600. An anonymous telephone bidder won the bid for a nostalgic and desirable piece by Henry van Velthuysen entitled My Village executed in 1939 for RM19,800. Dang Xuan Hoa’s My Child was also sold above the higher estimate at RM11,000 while Chen Wen Hsi’s Swimming Ducks saw intense bids across the saleroom and it reached its peak price of RM88,000 to an anonymous telephone bidder.

Mindscape remained the highlight of the sale with its impeccable provenance and a remarkable combination of quality and rarity that sparked strong interest among prospective buyers. The diptych gem fetched a buoyant RM396,000 to a room bidder. Also on offer were two immaculate paper works both dated 1965 from the Pago-Pago series which continued to gain buyers’ attention. The works established new records for the artist as the prices for these rare sketches soared to RM50,600 (lot 35) and RM40,700 (lot 26) respectively. Pago-Pago series is one of the most compelling in Southeast Asian art by the artist whose works were heavily influenced by nature at the time. “The Chinese ink section also thrived tremendously in this sale. Among the high record-setting prices were established by Huang Yao (lots 83 and 84) - fetching RM41,800 and RM30,800, 248.3% and 242% above higher estimates respectively - Calligraphy of Zen Poem by Chuk Mor, Reverend Dato’ brought RM12,100 which showed demand and growth for Chinese ink painting,” director Datuk Vincent Sim commented. Henry Butcher Art Auctioneers has been conducting successful auctions in Malaysia since 2010, raising more than RM16mil in sales. The company’s pioneering work in promoting Malaysian art through a transparent and competitive platform vis-à-vis an auction house has provided a comparative benchmark to local art pieces’ latest valuation. For more information, kindly contact Mr. Christopher Tay at +6016 298 0852 or email chris@hbart.com.my. To view the April 2013 catalogue and full results, please visit www.hbart.com.my

SOUTHEAST ASIAN ART PAVES WAY AT HENRY BUTCHER’S 5TH AUCTION By Chris Tay, Henry Butcher Art Auctioneers

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“It's not how much we give but how much love we put into giving.”

- Mother Teresa -

For almost two months, the HB Property Management team worked with the residents from Kiara Park TTDI and The Residence TTDI to collect daily home supplies including groceries, toiletries, household products, stationery and clothes. These items were later donated to the residents at Pusat Penjagaan Kanak-kanak Cacat Taman Megah (PPKKCTM), Taman Megah and Rumah Hope, Taman Paramount on 16 March and 23 March respectively. “I feel truly blessed with what I have, and what I am today, knowing that there are so many other people out there who are not as lucky as I am. I am glad that the residents at Kiara Park TTDI shared the same sentiment and went all out to donate these items for PPKKCTM. I would like to thank Mr. Low Hon Keong, Mr. Lee Choon Hoe and their team for organising this donation drive on our behalf, and we hope to contribute more to the next one soon!” quipped Ms. Grace Adams, former chairperson of Kiara Park TTDI Management Corporation. “Disabilities aside, the residents at the Pusat are very polite, well-mannered and friendly. I am humbled to see little boys and girls trying their best to help us carry some (heavy) items when we arrived there,” general manager of HB property management division Mr. Low Hon Keong said. “I’ve never seen anybody enjoying a simple food like ‘nasi lemak’ as much as them!” remarked property manager Mr. Lee Choon Hoe while he was helping to serve the food during tea break. According to the administration manager Mr. Baskin, the Pusat is self-supporting and depends solely on public contribution and volunteers for

its day-to-day running. Currently they are collecting funds to build a one-stop centre on a piece of land they recently acquired in Taman SEA. The projects construction is estimated to cost RM5-6 milliion. In the latter donation drive, Ms. Callie Poh collected the donated goodies from The Residence TTDI and personally made sure the items arrived safely at Rumah Hope. The children were particularly excited to see some toys and stationery in the boxes.

If you wish to make a personal contribution or organise a donation drive, please contact them directly: Pusat Penjagaan Kanak-kanak Cacat Taman Megah (PPKKCTM) Address: 2, Jalan SS 24/10, Taman Megah, 47301 Petaling Jaya, Selangor Tel: 03-7806 1143 Fax: 03-7805 1484 Email: ppkkctm_4@yahoo.com Website: www.ppkkctm.org.my Rumah Hope, Taman Paramount Address: 45, Jalan 20/2, Paramount Garden, 46300 Petaling Jaya, Selangor Tel: 03-7954 5523 / 79572860 Fax: 03-7954 5722 Email: info@rumahhope.org.my Website: www.rumahhope.org.my

CHARITY BEGINS AT HOME…THE HB HOME! By Callie Poh, Henry Butcher Property Management

Rumah Hope is currently housing 60 children between the ages of 5 and 17

who were either formerly abused, neglected or under-privileged.

PPKKCTM provides shelter and services to physically handicapped

and disabled children. There are about 138 children of all races living

at the Pusat, ranging in age from 9 months and adults up to 56 years of

age and coming from all over

peninsular Malaysia.

HB HERALD Issue 6

15 | P a g e

Henry Butcher Malaysia started its operation from an office of four staff in Kuala Lumpur in 1987. Since then the company has grown into a network of 25 offices with over 400 personnel and the group has expanded into Southeast Asia with equity interest in an asset management company in Thailand, a full office in Cambodia and associates in Indonesia, Singapore, Hong Kong and the U.K. In collaboration with HBM Building Solutions Sdn. Bhd., the company has launched the HB+ membership programme, designed exclusively for clients, associates, and business partners of Henry Butcher Malaysia group, to say thank you for their support throughout these 26 years. HB+ is conceived with the objective of fostering a better relationship with HBM clients, through products, services and events that will enhance the quality of living of our members.

HB+ Home Services, Expertise at Your Doorstep HB+ Home Services is our inaugural programme that provides home services and maintenance solutions to our members. Knowing the difficulty of getting a good and reliable plumber, technician or even contractor, our concept is simply based on efficient services, effective solutions and peace of mind for home owners. Our scope of services includes:

Electrical – Lightings, fuses, circuits and electrical outlets, and any other related home electrical issues.

Plumbing – Water taps and hose, shower head, bathroom inner workings, and any other home related plumbing issues.

Air Conditioning – remote control and unit circuit, air filter, fan motor, and any other home related air conditioning issues.

HB+ and More! We also have plans to roll out more benefits and privileges to our members, including:

Talks on home maintenance, investment and health

Special rebates and bulk discounts from merchants and property developers

Invitation to exclusive members-only previews of projects to be marketed

Members-only discounts on fees for professional services provided by Henry Butcher Malaysia group

Reward Programme through HB+ Points

It is our sincere wish that you, as one our clients, associates or business partners fully reap the benefits of our HB+ membership. If you wish to join our programme or find out more information, please contact our Ms. Lim Sooi Ping at +603-2694 3688, email members@hbplus.com.my or visit our website at www.hbplus.com.my. Our HB+ membership is free.

50% Discount for Home Repair

As an introductory offer, HB+ members will get 50% off the total bill

1 for any repair and maintenance

services related to plumbing, electrical and air-conditioning. Please call us our HB+ Hotline 1700-81-5505 (Mon to Fri, 9am to 9pm).

Win the Latest iPad!

We would like to get to know you better and make your experience with HB+, a wonderful one. By completing the Member Profile Registration Form and returning to us (kindly email members@hbplus.com.my), you will get a chance to win the latest iPad and other attractive prizes in our Lucky Draw

2!

1The introductory discount is limited to one-time use per member, subject to a maximum of RM200. The discount is only applicable for repair and maintenance works (see HB+ Home Services leaflet for full details), and not for new installation or purchase of parts. Standard conditions of service apply. 2To be eligible for the Lucky Draw, member must complete the Member Profile Registration Form and successfully submit to the HB+ Team. The Lucky Draw will be held in June 2013. Standard conditions of lucky draw apply.

Henry Butcher Rewards Clients

HB HERALD Issue 5

16 | P a g e

Henry Butcher Retail Director Speaking Engagement at PUNB Industrial Talk Perbadanan Usahawan Nasional Berhad (PUNB) is a national entrepreneur development corporation, focusing on developing high-potential Bumiputera SME entrepreneurs particularly in retail & distributive trade industry. RGM Retail Group (Malaysia) Managing Director Mr. Tan Hai Hsin will be giving a talk on, “The Outlook of Malaysia Retail & Distributive Trade Industry”. Date: 13 May 2013 Time: 3.00pm –5.00pm Venue: Level 10, Blok 1B, Plaza Sentral, Kuala Lumpur Sentral Contact Person: Pn. Norliza Mohd Nazri, +603-2785 1433

Preview – Lord Kensington, Kensington High Street, London W1 A prestigious collection of 1, 2 and 3 bedroom apartments and penthouses located at prime Kensington High Street. One of the rare and remarkable opportunities to invest in the Royal Borough of Kensington and Chelsea. Private residents’ leisure suite to include swimming pool, spa, fitness studio and business suite. Harrods concierge service. Date: 18 – 19 May 2013 Time: 10.00am – 7.00pm daily Venue: Mandarin Oriental Hotel Kuala Lumpur Contact: Jazmine, +6017-877 7489, jazgsh@henrybutcher.com.my Exhibition – Royal Victoria Garden, Marine Wharf, Surrey Quays, London SE16 Only 3 minutes to Canary Wharf by tube, this new vibrant destination features contemporary apartments, duplex apartments and duplex penthouses in an established residential area. Short walk to Canada Water Underground station for direct links to Canary Wharf, London Bridge, Bond Street and Baker Street. On-site shops, restaurants and leisure facilities include a newly opened Tesco Express. Potential to earn 6% rental yield with rental demand from Canary Wharf and the City. Date: 24 – 26 May 2013 Time: 10.00am – 7.00pm daily Venue: Mandarin Oriental Hotel Kuala Lumpur

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

Exhibition – Lincoln Plaza, South Quay, Canary Wharf, London E14 New luxurious apartments just 5 minutes walk to Canary Wharf and within 10 minutes walk to Jubilee Line and forthcoming Crossrail. Facilities include exclusive health spa, sauna, gym, pool, private cinema and snooker suite. Potential to enjoy strong rental returns with potential corporate tenants of over 43,000 employees. Date: 31 May – 2 June 2013 Time: 10.00am – 7.00pm daily Venue: Mandarin Oriental Hotel Kuala Lumpur Contact Person: Jazmine, +6017-877 7489, jazgsh@henrybutcher.com.my

Upcoming Events – May 2013

HENRY BUTCHER MALAYSIA

PENINSULAR MALAYSIA

Klang ValleyAmpangT • +603-4270 2072 / 73F • +603-4270 2082 E • hbampang@henrybutcher.com.my

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

Kuala LumpurT • +603-2694 2212F • +603-2694 5543 E • admin@henrybutcher.com.my

Petaling JayaT • +603-7873 3888F • +603-7873 7288 E • hbpj@tm.net.my

Subang JayaT • +603-5631 5555F • +603-5632 7155E • selangor@henrybutcher.com.my

Northern RegionAlor SetarT • +604-731 5525 F • +604-731 5699 E • hb_kedah@yahoo.com.my

ButterworthT • +604-398 8999 F • +604-398 8666 E • hbmperai@henrybutcher.net

IpohT • +605-253 9933 F • +605-254 9933 E • hbmperak@streamyx.com

KulimT • +604-491 2999 F • +604-491 2311 E • hbmkulim@gmail.com

Pulau PinangT • +604-229 8999 F • +604-229 8666 E • hbpenang@hbmpg.com

Seberang PeraiT • +604-397 5888 F • +604-398 8777 E • hbmperai@henrybutcher.net

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

SerembanT • +606-761 8681F • +606-761 8687 E • hbns@henrybutcher.com.my

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

KluangT • +607-775 1500 F • +607-775 1501 E • henrybutcherkluang@yahoo.com

MuarT • +606-955 5968 F • +606-955 5967 E • muar@henrybutcher.com.my

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

EAST MALAYSIASabahKota 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

For enquiries, please contact our Headquarters:

HENRY BUTCHER MALAYSIA Sdn Bhd (160636-P)25, Jalan Yap Ah Shak, 50300 Kuala Lumpur, MalaysiaT : +603-2694 2212 F: +603-2694 5543 E: admin@henrybutcher.com.mywww.henrybutcher.com.my

ValuationMr. Long Tian Chek, hbmalaysia@henrybutcher.com.myMr. Gary Liew, hbmalaysia@henrybutcher.com.my

Project MarketingMr. Tang Chee Meng, tang.cm@henrybutcher.com.myMs. Linda Ooi, lindaooi@henrybutcher.com.myMs. Lenna Liew, lennaliew@gmail.com

Agency & InvestmentMr. Tang Chee Meng, tang.cm@henrybutcher.com.myMs. Lenna Liew, lennaliew@gmail.comMr. Low Weng Soon, wengsoonlow@gmail.com

International MarketingMs. Jazmine Goh, jazgsh@henrybutcher.com.my

Research ConsultancyPn. Fahariah Abdul Wahab, hbampang@henrybutcher.com.my

Retail ConsultancyMr. Tan Hai Hsin, tanhaihsin@yahoo.com

Asset ManagementMr. Low Hon Keong, secretarypropmgt@henrybutcher.com.my

AuctionsMr. Tang Chee Meng, tang.cm@henrybutcher.com.myMr. Tan Peen Yeow, hbaamalaysia@gmail.com

Plant & MachineryMr. Gary Liew, hbmalaysia@henrybutcher.com.my

Art ConsultancyMr. Christopher Tay, chris@hbart.com.my

MM2HMs. Suyi Chong, suyi@henrybutcher.com.my

DISCLAIMER

Disclaimer Policy:We make no warranties or representations as to its accuracy and we specifically disclaim any liability or responsibility for any errors or omissions in the content. We specifically disclaim any liability direct or indirect, incidental, consequential, consequential or special damages arising out of or in any way connected with the access or use of the information in this newsletter.

The property information provided in this newsletter is for information only and does not constitute a basis for any actions or decisions. No part of this document may be construed as a statement or representation of fact based on which a contract is created.

Copyright Policy:All material in this newsletter including all graphics and writings may not be copied, published, broadcast, rewritten, or redistributed in part or in whole without the written consent from Henry Butcher Malaysia Sdn. Bhd., its authors and contributors of articles.

If consent is given, consent will be subject to the requirement that the copyright owner’s name and interest in the material be acknowledged when the material is reproduced or quoted, in whole or in part.

All rights reserved.

These terms and conditions shall be governed by and construed in accordance with the laws of Malaysia.

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