GEORGE TOWN: The Penang government has decided to go back on a land reclamation deal with Boustead Holdings Bhd, which was part of a compensation mechanism for the latter, after it scaled down its Royale Bintang Hotel project in the heritage core zone.

Penang Chief Minister Lim Guan Eng said the state government will discuss the issue with Boustead to avoid a legal recourse.

"After much public consultation, the Penang state government has taken cognisance of the views of the residents of Putra Marine, Gold Coast and Bay Garden and decided not to pursue the land reclamation at Bayan Bay to Boustead.

"This decision by the Penang state government is also pursuant to the legal notice of defamation sent by Boustead to Pantai Jerejak state assemblyman Sim Tze Tsin over his public remarks in defending the interests of his constituents, which the state government views with displeasure and as a form of pressure exerted on the state government.

"As the state government only submits to the people of Penang, to pursue the land reclamation deal with Boustead under the shadow of the legal notice of defamation sent by Boustead to YB Sim is wholly inappropriate.

"Boustead will still be required to comply with the World Heritage's building height control of 18m within the heritage core zone in George Town. The form of compensation to be paid and whether it should be paid is still subject to further negotiations with Boustead," Lim said at a press conference on Monday.

Boustead had agreed to submit a revised building plan for approval from the Penang Island Municipal Council (MPPP) which will not exceed the required height in consideration of the state government/MPPP agreeing to Boustead to reclaim up to 100 acres (40ha) or as sufficiently needed to provide for a minimum of 50 acres of net saleable development land area along the coastal area off Queensbay on a freehold basis to be formalised via a reclamation agreement.

This was supposed to be in lieu of monetary compensation sought by Boustead for having to scale down its 12-storey hotel to five storeys (18m), following the inscription of George Town as a Unesco World Heritage site in July 2008.

A signing ceremony was initially planned on June 27 this year for Boustead to enter into an agreement with the state government and MPPP.

"In that agreement, strictly without prejudice, I must emphasise, Boustead had agreed to revise the building plans of the hotel project by reducing from 12 storeys to five in exchange for compensation in the form of the reclamation project.

"However, I postponed the signing ceremony over the objections of Boustead, as I wanted to listen to Pantai Jerejak assemblyman YB Sim and the views of the residents in the surrounding affected areas," Lim added.

The project approved by the previous state government originally comprised the development of a 12-storey four-star hotel with 293 rooms and the restoration of a three-storey Heritage Building at No 1 & 2 Weld Quay, Penang on a 1.195-acre site.

Planning approval was obtained from MPPP on April 9, 2007 and building plans were approved on Feb 15, 2008.

"I must say this project was approved by the previous state government despite the fact that it had already submitted to Unesco that the limit of five storeys within the heritage enclave would be imposed.

"They were breaking their own promise, which they made to the international organisation and when the World Heritage site status was granted, this became an issue.

"This state government felt that since the commitment had been made, it had to be honoured," Lim added.

Before the land reclamation deal was initiated, Boustead had sought RM60 million in compensation claim from MPPP.

The Royale Bintang Hotel is among four projects affected by the Unesco ruling in the core zone of the World Heritage Site in George Town.

There are no problems with the other three projects, namely Asian Global Business Sdn Bhd's (AGB) Rice Miller Weld Quay Development in the core zone which has been rescaled to 18m in height, Eastern & Oriental Bhd's annexe building of the E&O Hotel in the buffer zone which has also been reduced in height and Low Yat group's project along Jalan Sultan Ahmad Shah.

SOURCE: The Edge Property

KUALA LUMPUR: Nadayu Properties Bhd, formerly known as Mutiara Goodyear Development Bhd, will use part of the cash from disposing of its non-core assets to buy land in the Klang Valley.

Yesterday, shareholders approved Nadayu's plan to dispose of four office lots and 3,087 car-park bays in Selangor to a company, called Park Access Sdn Bhd, for RM42.6 million.

Nadayu executive chairman Hamidon Abdullah is happy with the stakeholder approval as it will free up cash for the company, which should help it focus on property development.

"We will be able to buy more land now and expand our property development activities. We have pockets of land in Sunway, Melawati and Cyberjaya. If we want to spread our resources, we will look at land nearby these areas," Hamidon said after the company's extraordinary general meeting (EGM).

Hamidon aims to grow the company to become a niche developer, focusing on medium to high-end developments in the Klang Valley and Penang.

"As we move forward from one development to another, we will look for more innovation and incorporate green elements. We want to ensure our projects have elements of sustainability, hygiene and security," Hamidon said.

Nadayu has three projects worth RM1.5 billion for launches in Bandar Sunway, Cyberjaya and Bukit Gambir in Penang, starting from the current quarter.

On rising raw materials prices, Hamidon said the company will look into the matter to ensure its profit margin does not erode.

"Sometimes we have to bite the bullet to give the same template and that is when our profit margin will erode. So we have to build in volume and be mindful of what we provide," he said.

Meanwhile, Hamidon said he has no plans to sell Nadayu or merge with other developers despite being approached by several parties.

"We are not keen at this point. We are still in the process of adding value to the company and building the brand name," he said.

The company changed to its current on June 20.

SOURCE: Business Times

GEORGE TOWN: The Second Penang Bridge which is 65% completed, is expected to be ready earlier than November 2013, the deadline.

Works Minister Datuk Seri Shaziman Abu Mansor said with the earnest effort put in by the contractor, he was confident the project would be ready two months earlier than scheduled.

"Everything is going on smoothly and the project contractor expects 70% completion by the end of this year," he said after visiting the project site here on Monday, Oct 17.

"The progress is affected to a certain extent by weather conditions, but if the weather permits, I believe the project will be completed earlier as the progress now is two% ahead of the schedule."

Shaziman also urged companies taking part in the construction of the Second Penang Bridge to train more people.

"I regret to learn that this year, there is no participation by local university engineering students in this project, as this is a good opportunity for them to gain knowledge from such a big project, " he said.

He said last year, about 50 undergraduates participated and they were given an allowance during their practical training.

"Such a bridge can be built anytime if we have the money, but gaining knowledge from it is important and I want our people to do that."

The Second Penang Bridge project, which costs less than RM4.5 billion, is a joint venture between China Harbour Engineering Company Ltd and UEM Builders Bhd. Construction began in 2008.

The 24km bridge, which is the longest in Southeast Asia, connects Batu Maung on the island and Batu Kawan on the mainland. – Bernama

SOURCE: The Edge Property

GEORGE TOWN – The Bayan Bay community today affirms their trust and belief with the Pakatan Rakyat led State Government as Chief Minister Lim Guan Eng scraps a reclamation deal with Boustead Holdings Berhad (BHB), and paid attention instead to the voice of the rakyat of the Pantai Jerejak constituency.

The reclamation deal was a result of a botched development deal made by the previous Barisan Nasional government, approved back in April 2007; with the plans approved in February 2008, a month before the political tsunami of March 08 hit Penang. The proposed development of a twelve storey hotel by BHB was against the conditions imposed by the United Nations Educational, Scientific and Cultural Organization (UNESCO) for George Town’s World Heritage City Status and was thus halted in 2009.

A revised building plan reducing the hotel from 12 storeys to only 5 was then submitted in consideration of the State Government agreeing to a reclamation deal along the coastal area off Queensbay. The Chief Minister however postponed the signing ceremony scheduled in June this year as he wanted to listen to the view of the residents in the area and Pantai Jerejak Assemblyman YB Sim Tze Tin.

In a statement today the Chief Minister decides not to pursue the land reclamation at Bayan Bay to BHB, also because of the legal notice of defamation issued by BHB to YB Sim over his remarks in merely defending the interests of his constituents.

“The Penang State Government only submits to the people of Penang,” says Lim. “To pursue the land reclamation under the shadow of the legal notice of defamation sent by BHB to YB Sim is wholly inappropriate. The State Government views such act with displeasure as it is a form of pressure exerted on the State Government.”

Lim also reminds the residents of the Bayan Bay area who were also present at the press conference today that, “Those who claimed to protect your interest are the one who initiated the problem in the first place.”

The Bayan Bay community took the opportunity to express their gratitude to the Chief Minister, that though he was taking a big toll on the decision, he puts the interest of the Rakyat first above all else. “If you continue helping the rakyat, we will always support you,” says a representative. “The Rakyat has to face the consequences due to problems made by previous government.”

Further negotiations with BHB will decide on whether there will be any form of compensation.

Source: BuletinMutiara

KUALA LUMPUR: Property developer Nadayu Properties Bhd
(formerly known as Mutiara Goodyear Development Bhd) is targeting sales next year of RM300 million of its properties in several locations in Klang Valley and Penang.

Executive chairman Hamidon Abdullah said the company is about to launch three new projects: Nadayu 28 Sunway, expected to be launched early next month; Nadayu 99 Cyberjaya at the end of this year; and Nadayu 290 Penang early next year.

“The Nadayu brand is becoming acceptable, people are starting to identify the name, and people are starting to associate it with some level of quality and delivery.

“But we want to put out complete affordable products,” he told reporters at Nadayu’s extraordinary general meeting (EGM) here today.

Hamidon said to date, the company had achieved sales this year of about RM250 million of its mixed development projects.

At the EGM, shareholders approved the disposal of three office lots at Dataran Prima with a total floor area of 213.435 sq m for a cash consideration of RM42.6 million.

Hamidon said the asset disposal was in line with the company’s strategy of disposing of non-core assets to focus on its core business of property development.

“The cash from the asset disposal will be used to acquire more strategic land banks for future development,” he said.

Upon completion of the asset disposal, Nadayu shareholders’ funds will stand at RM330.9 million with net asset per share of RM1.44. – Bernama

SOURCE: Business Times