GEORGE TOWN: Ivory Properties Group Bhd is expecting approval from the Penang Development Corporation (PDC) this week for its proposed RM10 billion “Penang World City” project at Bayan Mutiara.

Executive director Murly Manokharan said yesterday the development was expected to incorporate, among others, medical facilities, Grade-A offices and both high-end and affordable housing units.

“We are open to working with strategic partners for certain components of the development, such as a shopping mall and a medical centre, as opposed to seeking investors for an outright sale of chunks of the land,” he told Business Times after the company’s extraordinary general meeting (EGM).

Present was Ivory’s deputy chairman and executive director Datuk Seri Nazir Ariff Mushir Ariff.

During the EGM, which lasted 40 minutes and saw a shareholder turnout of 62 per cent, the company received unanimous approval from those present for its plan to purchase and develop a 41.02ha site in Bayan Mutiara on Penang island, from the PDC and Chief Minister of Penang (Incorporated).

The land was sold for RM1.07 billion, or RM240 per sq ft, to be paid over five years.

Shareholders also gave their nod for a joint-venture between Ivory and Dijaya Corporation Bhd to develop the land, which is located near the Penang Bridge.

After the execution of the Builder Agreement, Tropicana Ivory Sdn Bhd – which is 55-per cent owned by Dijaya and 45 per cent by Ivory – will develop the RM10-billion Penang World City development. The development will be a mixed-use residential and commercial project.

Murly said the master-planned development, which has been crafted by international firm Design 103 International Ltd, would adhere to any height restrictions imposed by the Department of Civil Aviation, owing to the project’s proximity to the Penang International Airport at Bayan Lepas. Any project sited within 15km from the airport is deemed by the DCA to be in the flight path.

Penang World City, he noted, was expected to be completed in eight years, with work on the first phase commencing at the end of this year.

“Now that we have obtained shareholder approval to enter into the joint-venture with Dijaya and also for the proposed rights issue, we are looking at a RM500 million capitalisation and are in a better financial position to carry out the project,” Murly said.

As the principal builder of the project and turnkey contractor, Ivory will manage and develop the entire project, for which it will be entitled for 48 per cent of the gross development value.

“We are currently engaging with both local and foreign investors who may been keen to partner us in certain phases of the proposed development.

“However, our first obligation is to honour whatever outstanding payments which are being owed and we are looking at settling the RM80 million being owed to the PDC by April 10,” Murly added.

PDC and Chief Minister Inc sealed a deal on November 11 last year to sell the land to Penang-based Ivory Properties Group Bhd for RM1.07 billion, or RM240 per sq ft, to be paid up in five years.

Ivory’s chairman and group chief executive officer Datuk Low Eng Hock was quoted last month saying that the company has paid a RM22.1 million deposit for the land and that the remainder will be paid according to the scheduled progress payment after shareholder approval was obtained at the EGM.

SOURCE: Business Times

Carissa Villas, a low-density gated and guarded development by Tambun Indah. Located at Bagan Lallang at the centre of fast growing Raja Uda Township and near to the renowned Chung Ling High School, SRJK Kwang Hwa, wet markets, Sunway Carnival, banks & other amenities.

Its strategic location & established infrastructure provides fast access to the Penang Bridge, Butterworth Outer Ring Road and other major towns like Bukit Mertajam and Juru.

Property Project : Carissa Villas
Location : Bagan Lallang, Butterworth, Penang
Property Type : 3-Storey Terrace
Land Area : 20′ x 61′ onwards
Built-up Area : 20′ x 40′ onwards
Total Units : 48
Indicative Price : RM 628,000 onwards
Tenure : Freehold
Developer : Tambun Indah

Contributed by reader (28/09/2012)

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THE Penang Development Corporation (PDC) Properties has successfully completed the construction of 715 low to low medium-cost housing units in Sungai Dua.

PDC Properties chief executive officer Phan Gaik Cher said the development cost of the project was about RM80mil.

“Construction started in early 2009 with a targeted completion date in July this year.

“We managed to finish the project four months ahead of schedule,” Phan declared, adding that the required Certificate of Fitness (CF) was ob-tained on Jan 30 this year.

PDC Properties is a subsidiary of the state’s development arm Penang Development Corpo-ration.

The project called Halaman Kenanga stands on a 1.74ha plot and has 510 low medium-cost units and 204 low-cost units in two 22-storey blocks.

The 700sq ft low medium-cost units cost RM72,500 while the 680sq ft low-cost units cost RM42,000.

Chief Minister Lim Guan Eng, who was present yesterday to hand over keys to some of the owners, said that the project was proof that the state put the interests of the people first.

“There has been criticism from certain quarters that the state has not provided a single low-cost unit.

“Since taking over the state government, the Pakatan administration has in fact approved 11,596 low-cost and low medium-cost units,” he said after handing over mock keys to 22 Halaman residents.

Lim hopes that the affordable housing issue would finally be put to rest.

“The state could have used this land for profit, but instead we decided to use it in the commu-nity’s interests,” he added.

The Penang Government came under fire last year after the Auditor-General’s Report 2010 stated that the state had not built a single low-cost house from 2008 to 2010.

Among those who received their keys was self- employed Ahmad Yatim, 70.

“This is the first home I have ever owned,” the grandfather of 10 said, adding that he would move into the three-bedroom flat with three family members.

Source: The Star

THE Penang Regional Develop-ment Authority (Perda) will build 238 low-cost units for the poor at Kampung Tok Subuh in Bukit Minyak, Bukit Mertajam.

Construction will start soon and the project is expected to be completed in two years.

Perda chairman Datuk Azhar Ibrahim, who is also Penang Umno secretary, said the project costing RM15mil would benefit the poor in the area.

“A local consultant has been appointed to oversee the project unlike the state which appointed a Singaporean consultant company to handle its low-cost project in Batu Kawan.”

He said this after presenting keys to 13 house owners who were former occupants of the land at Kampung Tok Subuh on Friday.

The houses built by Syarikat Perumahan Negara Berhad (SPNB) cost RM70,000 each.

The Federal Government has subsidised RM44,000 and the re- maining RM26,000 will be paid by the new owners over the next 25 years.

Also present at the handover were SPNB acting senior general manager Datuk Ahmad Azizi Ali and Bukit Mertajam Umno division chief Senator Datuk Musa Sheikh Fadzir.

Azhar said the project was to show that the Government was concerned about the plight of the poor and it had plans to uplift the lifestyle of poor and the lower-income groups.

Source: The Star

CAPITALAND Commercial (M) Sdn Bhd, an indirect wholly-owned subsidiary of Singapore’s CapitaLand Ltd, is actively looking for potential land in prime locations in the Klang Valley and other key cities in Malaysia for more property developments.

Its vice-president of project and asset management Lim Chee Ming says the company’s long term plan is to focus on residential and commercial projects.

“We also intend to set up new funds to take part in more developments. We are monitoring market conditions very closely as the timing must be right,” he shares with StarBizWeek.

Lim says the Malaysia Commercial Development Fund (MCDF) is a successful fund which has distributed double-digit returns to its investors to-date. It is on track to return the balance of the investments by 2013.

MCDF was established in 2007 by CapitaLand and Maybank to invest in real estate development projects in the Klang Valley. The private real estate fund closed at US$270mil.

Some of the completed projects by the fund include One Mont Kiara and KL Sentral Lot J, in which MCDF has already divested.

Lim says moving forward, the company intends to set up similar funds for its new developments.

“The Malaysian government’s plan to attract 100 multinational companies to establish their global or regional headquarters in the Klang Valley has the potential to upkeep a buoyant outlook for the office sector.

“We are also positive with the outlook of the residential sector. There is still high demand for new residential properties as the take up rates of recently launched residential developments are encouraging,” he says.

The company’s most recent project in Kuala Lumpur is Sastra U-Thant, a luxury residential project in Taman U-Thant, a prestigious diplomatic enclave off the Kuala Lumpur City Centre. The project is a joint venture between CapitaLand and Juta Asia Corporation Sdn Bhd.

As of last month, the foundation and basement works for the project have been completed, and Sastra U-Thant is slated for completion next year.

CapitaLand Commercial Malaysia head of marketing Jaselyn Wan says the project has received strong support from high net-worth Singaporean buyers who are keen to invest in prime properties in Malaysia.

Wan says the sentiment for the local residential market is still positive with encouraging take up for new residential projects.

“There is increasing interest from high net-worth Singaporeans to invest in prime Malaysian properties due to the attractive rental returns and affordability,” she notes.

Lim says CapitaLand Commercial’s portfolio of investment property is through Quill Capita Trust (QCT), a real estate investment trust listed on Bursa Malaysia.

CapitaLand Commercial’s investment in QCT is held through CapitaCommercial Trust which has a 30% stake in QCT.

According to Lim, QCT’s investment objective is to acquire and invest in office and commercial properties. “We are always actively exploring acquisitions for QCT,” he says.

In the retail sector, CapitaMalls Asia chief executive officer Lim Beng Chee says the company continues to look for opportunities to grow its presence in the local market.

“We are open to acquiring or investing in good mall assets which will benefit our stakeholders and which are in line with our investment criteria. The focus is on growing urban centres in Malaysia.”

CapitaMalls Asia is well-positioned for growth in the country’s retail sector, given that its five malls are located in the major urban centres of Penang, Kuala Lumpur, Selangor and Kuantan.

The malls are Gurney Plaza and Queensbay Mall in Penang; Sungei Wang Plaza in Kuala Lumpur; The Mines in Selangor; and East Coast Mall in Kuantan.

CapitaLand’s serviced residence unit, The Ascott Ltd, also sees strong growth potential for its serviced residence operation in Malaysia.

The Ascott Ltd regional general manager for Singapore and Malaysia, Tan Boon Khai says the company is positive about the serviced apartment outlook in Malaysia and would continue to look for opportunities to expand its footprint and presence.

“The country’s resilient economy and attractiveness as a destination for foreign direct investments (FDIs) augurs well for the sector.

“As FDIs increase, we expect strong demand for serviced residences and we are constantly seeking opportunities to strengthen our leadership position in Malaysia,” Tan adds.

As at December 31, 2011, Ascott’s Malaysia portfolio is valued at S$101mil, The assets include Somerset Ampang Kuala Lumpur and Somerset Seri Bukit Ceylon Kuala Lumpur which are 100% owned by the company, and Ascott Kuala Lumpur (which it has a 50% stake).

Last year, Ascott expanded to Cyberjaya, Petaling Jaya and Iskandar Nusajaya in Johor, which consolidated its leadership position as the largest international serviced residence owner and operator in Malaysia.

Tan says the company has more than 1,000 units in the country which are scheduled to open over the next five years.

“This year, we will be opening our first Citadines serviced residences in the country, Citadines Uplands in Kuching. This will be followed by Ascott Sentral Kuala Lumpur and Somerset Puteri Harbour Iskandar in 2013.

“2014 will see us opening Citadines D’Pulze Cyberjaya and in 2016, we will have our new Somerset property in Damansara in Petaling Jaya. In total, this will bring our Malaysian portfolio to about 1,600 units,” Tan says.

SOURCE: The Star