HOUSE buyers looking for distinct homes which are strategically located can check out BSG Property’s Permai Gardens at the four-day Star Property Fair 2011.

Strategically located in Tanjung Bungah with its plethora of amenities, Permai Gardens is conceptualised as a gated and guarded landed property.

The exclusive project by BSG Property, a proud division of Boon Siew Group, comes equipped with various advantages such as in-house club and its many facilities.

The project consists of 31 units of three-storey villas and 132 units of three-storey terrace houses, and buyers will get to enjoy their own swimming pool, gymnasium, clubhouse and state-of-the-art security system.

With such amenities available, one can actually save the hassle of driving out to the gym for regular workouts.

Some of the villas come with a full view of the pool and have their own private and instant access to the pool via the living room.

Located close to the Permai Linear Park, Permai Gardens will provide residents with a safe trail for walks, jogs and cycling.

Buyers will also get to enjoy the project?s prime location with access to malls like Gurney Plaza and Island Plaza as well as hypermarkets like Tesco and Cold Storage.

Within close proximity are institutions and recreational facilities like the Tenby International School, Tunku Abdul Rahman (TAR) College and the Penang Swimming Club. Residents will also be spoilt for choice with the various entertainment outlets, cafes, shopping, nightlife or just going for a stroll by the beach.

Permai Gardens terraces have a gross floor area from 3,200sq ft (297.2sq m) to 3,400sq ft (315.8sq m) while the villas cover an impressive 4,300sq ft (399.4sq m) to 5,400sq ft (501.6sq m).

Touted as Penang’s premier property expo, the fair?s ninth edition will be held at Gurney Plaza and the adjoining G Hotel from July 21 to 24.

To date, 28 major developers (representing almost all the big boys in the industry) along with several financial institutions, have taken up booths in the fair.

The RM30,000 worth of prizes for the “Surf, Click & Win” contest are sponsored by IJM Land.

The fair, to be open to the public from 10am to 10pm daily, is organised by The Star in collaboration with Henry Butcher Penang. Admission is free.

For enquiries, call 04-6473388 ext 3357 (Shirmein) or ext 3418 (Bessie).

SOURCE: The Star

THE state government should take the lead when it comes to building affordable housing.

This call was made by the Real Estate and Housing Developers’ Association (Rehda) Penang chapter chairman Datuk Jerry Chan (pic).

“Developers are not supermen. They alone cannot construct affordable homes.

“The cost of subsidy is borne initially by developers but ultimately such costs are passed on to buyers of non-subsidised property,” said Chan during a local government forum entitled ‘Affordable Housing A Possi-ble Dream?’ at the state Caring So-ciety Complex on Monday .

He said housing developers also had to pay income taxes just like those in other industries.

“Are we then to expect car manufacturers to build a certain stretch of road for every car sold?” he said in reference to the difficulty faced by deve-lopers in construc-ting affordable units in Penang.

He added that his members also had to contend with rising costs of materials and land.

“Now developers building low medium-cost units are also required to contribute towards building schools as part of the projects’ concessions,” he said.

Chan said the state government could do more in this context.

The state is able to provide land and has the right to build, reclaim, convert, degazette, collect contri-butions, impose charges, change policies and guidelines as well as enact new laws.

“The state government must also re- consider the requirement for additional structures imposed on developers such as being asked to erect hawker sites, schools or religious buildings.

“The private sector should not be asked to do what the (state) government is not prepared to,” he said.

To overcome the acute shortage of land in Penang, Chan suggested more reclamation, updating of planning guidelines and removal of redundant requirements.

State Local Government and Traf-fic Management Committee chairman Chow Kon Yeow who chaired the forum said the state noted the call for its greater involvement in providing affordable housing and would now be more involved instead of just providing guidelines.

“In the past, there were complaints that the Penang Development Corporation or other agencies were competing for higher-end development instead of providing affordable homes. I hope the setting up of the state Housing Board will help mobilise all resources to resolve the issue,” he said.

On availability of affordable housing, Chow said: “In southern Sebe-rang Prai, there are a lot of empty low-cost units. As such, it is important to study the needs of various locations to avoid a mismatch of supply and demand.”

SOURCE: The Star

One of the highlights of the November 5 2009 report titled "Pounding the Pavement in Penang" was the potential property development projects by the state.

They include:

* 12ha of strategically located land for commercial and residential development at Bayan Mutiara,

* 2,400ha of land in Batu Kawan on the mainland where the 2nd Penang Bridge will link up to Batu Maung on the island,

* Potential reclamation for Penang's famous seaside promenade Gurney Drive,

* 2ha of land earmarked for rehabilitation/redevelopment where the former Prangin Market and 46 units of pre-war houses were sitting in the heart of George Town, and

* 160ha of hill land with elevation of 250-1,700 feet perched on the Relau/Paya Terubong Hill.

"The Penang state government plans to invite proposals for the development of these five parcels of land," said CIMB.

"We understand that big developers are showing keen interest in some of the strategically located landbank, particularly the Bayan Mutiara and Gurney Drive Offshore projects," it added.

Noting that although the Batu Kawan land is sizeable and well-located, the report said the soil is swampy and difficult to develop.

"We view favourably the participation of the big developers in these projects as it will not only help accelerate development of Penang but could also be a significant share price catalyst if pricing is fair."

For Penang-based property player MTT Properties and Development Sdn Bhd, its garden township development called "Botanica CT" in Balik Pulau, is set to make waves when the first full-boarding international school comes up.

The school, which will offer the British curriculum system, will have the infrastructure to house 800 students and the first enrolment is planned for September 2011.

Ivory Properties Group, which is planning an initial public offering, also has several condominium and landed property projects lined up, along with a tourist mall.

CIMB also said that feedback from developers on what it is like operating under the Pakatan state government compared to before was that the new officials are working hard but need time to move up the learning curve.

"Also, the civil service remains relatively unchanged and, therefore, both sides need to cooperate better to facilitate speedier processing. Certainly, hidden monetary costs are minimal but the trade-off is more bureaucracy and slower approvals.

"The slower approvals contributed to delays in launches and construction progress, which in turn partly explains the firmer-than-expected property prices in the state," said CIMB.

SOURCE: Business Times

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EARLY last year, UEM Land Holdings Bhd CEO and MD Datuk Wan Abdullah Wan Ibrahim brought up the high aspirations he has for the company and Iskandar Malaysia. He told StarBizWeek that he aspires to make UEM Land Holdings Bhd a global property development outfit the likes of Singapore’s CapitaLand.

“We hope to one day play a similar role in Khazanah – be what CapitaLand is to Temasek. We recognise that we are a relatively small player compared to the highly diversified property player like CapitaLand,” Wan Ibrahim said when talking about the plans he has for southern Johor economic region.

The time for Wan Ibrahim to make that aspiration a reality has come.

Early this week, Khazanah Nasional Bhd issued a joint statement with Singapore’s Temasek Holdings Pte Ltd to develop RM30bil worth of real-estate projects in Singapore and Iskandar Malaysia, which is located in the southern part of Johor. It will be the largest property joint venture between the investment arms of the two governments to date. The implications are many and far reaching.

Iskandar Malaysia is Khazanah’s largest property investment, while UEM Land is its property flag bearer. UEM Land is the master developer of 9,713ha Nusajaya township. Singapore-based CapitaLand Ltd, on the other hand, is South-East Asia’s largest property company in terms of market capitalisation, with sprawling assets and interest throughout the region. It is one of Temasek’s portfolio company in the real estate sector. The other portfolio company in the same sector is Mapletree Investments Pte Ltd.

“Iskandar Malaysia, by itself, is essentially Johor Baru, three ports and a domestic airport. Iskandar Malaysia plus Singapore is a different equation altogether. We are then have the additional Jurong and Port of Singapore Authority and Changi International Airport, which connects to over 200 destinations worldwide, with 5,000 arrivals and departures a week by 80 international airlines. In terms of banking and services, it is second to none in the South-East Asia region,” Wan Ibrahim says.

All that connectivity and infrastructure will be there for the state of Johor to leverage on, with sovereign backing from both sides.

UEM Land will not only be working with CapitaLand, it will also be working with Mapletree Investments Pte Ltd, another portfolio company in real estate development.

Two new joint-venture companies, M+S Pte Ltd and Pulau Indah Ventures Sdn Bhd, for joint-development projects in Singapore and Iskandar Malaysia respectively, have been established.

In an e-mailed statement, Wan Abdullah says Sunrise MS Pte Ltd, UEM Land’s indirect wholly-owned subsidiary has been appointed together with Mapletree Investments to oversee the development and marketing of four land parcels at Marina South, located at the heart of the financial and business cluster in Singapore’s Marina Bay area with a total permissible gross floor area (GFA) of 341,000 sq m.

In addition, UEM Land and CapitaLand have been appointed to oversee the marketing and development of two land parcels in Ophir-Rochor, located between the Kampong Glam Historic District and the Beach Road Conservation Area with a total permissible GFA of 160,020 sq m.

The development at these two sites totalling 501,020 sq m, will include office, residential, hotel and retail components with a total estimated gross development value of approximately S$11bil (RM27bil), subject to design and development plans.

“We have the expertise to undertake these two projects and are thus excited to be involved in the development of these two key sites in Singapore. We view this as an excellent opportunity to familiarise ourselves with the Singapore market and regulatory framework, in line with our aspiration to expand to regional markets.

“Our appointment also allows us to establish a close working relationship with two leading real estate companies from Singapore and I view the appointments as win-win for both parties for not only are we able to learn from each other but it also provide a platform for future collaborative opportunities both in Nusajaya and elsewhere.” says Wan Ibrahim.

It is an opportunity that other Malaysian developers would give a leg and an arm for. The last several years, Malaysian developers have been making forays into the city state. These include YTL Land Bhd, sdb Properties Sdn Bhd, the Sunway group, SP Setia and GLC Sime Darby group. With land prices so steep by comparison, one has to have deep pockets and a deep confidence that there will be demand for their offerings. In the case of UEM Land, the prize literally landed on them.

RAM Holdings group chief economist Dr Yeah Kim Leng views the cooperation very positively.

He says from the economic perspective, the synergies when Khazanah and Temasek pool their resources and capital to jointly undertake investments in the two countries will enhance the potential of their investments considerably. The positive spillover arising from the collaboration will be that a lot of things will be fast tracked. There is also a greater chance for success given their sovereign backing from the respective governments.

“It will go beyond real estate to attract other business ventures to enter Iskandar. The positive effect for UEM Land and Iskandar is greater because some of Singapore’s excess capacity can be relocated to the Malaysian side given our large land resources. UEM Land will be able to upscale themselves. This is one of the benefits of the JV,” says Yeah.

Despite the difference in size – Iskandar Malaysia is three times the size of Singapore – Yeah says there is much opportunities for UEM Land, Iskandar Malaysia. “The positive effects of this JV goes beyond property development, UEM Land. It will broaden and deepen Johor’s economic base.

“Regionally, there is greater integration from the perspective of the Johor-Singapore region and well as the greater Asean region. With China and India having their huge population to generate demand, this is an opportunity and a catalyst for Malaysia and Singapore – and Asean – to generate demand. Malaysia will be benefit more because our absorption capacity should be greater and some of the excess capacity from Singapore can be relocated to the Malaysian side,” he says.

The positive effects of the tie-up has already spill over to the private sector. A day after the Khazanah-Temasek announcement, Eastern & Oriental Bhd (E&O) issued a statement it will be partnering both state investment arms to develop an 84ha mixed development dubbed as a wellness township in Nusajaya, Johor. E&O’s unit Galaxy Prestige Sdn Bhd has set up a 50:50 joint-venture company, known as Nuri Merdu Sdn Bhd, with Pulau Indah Ventures Sdn Bhd, a 50:50 venture between Khazanah and Temasek.

E&O deputy managing director Eric Chan says in a e-mailed statement that the targeted GDV is estimated at approximately RM3bil and the actual figure will be dependant on the final masterplan. The infrastructure works have already started and targeted for completion by end of this year. Depending on market conditions, this project should last us between five and 8 years.

Says Chan: “The term ‘wellness’ is a broad concept that encompasess the well-being of the overall body, mind and spirit. Our consultants and architects are setting out to weave “wellness” elements into the masterplanned development with a view towards providing a quality lifestyle that enriches the well-being of residents.

Work on the master plan will be completed by the end of this year, the next stage is getting approval from the authorities, he says.

Prior to this, the lifestyle property developer signed a partnership agreeement with Japan’s Mitsui group, Mitsui Fudosan Co Ltd, to jointly develop residential properties in Malaysia and the region.

Chan says their venture into Iskandar with Pulau Indah Ventures Sdn Bhd has no connection with the Mitsui Group but an analyst says the recent developments will be synergistic for the Penang-based developer.

“They can sell their Iskandar, Penang and Kuala Lumpur projects,” says RHB Research Institute senior property analyst Loong Kok Wen.

She says up to this point, E & O is the only Malaysian developer working with CapitaLand in Khazanah-Temasek venture.

SOURCE: The Star