IVORY Properties Group Berhad continued its winning streak when the property developer bagged the International Standard Quality (ISQ) 2011 award.

Handed out by the European Union Analysis Alliance (EUAA), the award was for ‘Quality Property Developer & Contractor’.

Ivory’s non-independent non-executive director Ooi Choi Kiat said the award came right on the heels of the group winning the bidding for a 41.5ha plot of land at Bayan Mutiara in Penang.

“This is yet another recognition for us. We will continue serving the community by ‘building a better world for our future generations’ (Ivory’s tagline).

“We will work harder to live up to our status as one of the most established and reputable property developers in the northern region,” he said.

He was speaking after receiving the award from Domestic Trade, Cooperative and Consumerism Deputy Minister Datuk Rohani Abdul Karim.

In May, the group’s Moonlight Bay pro-ject in Penang earned the highly commended citation as the Best Leisure Development at the Asia Pacific Property Awards 2011.

The ISQ award was aimed at recognising companies and individuals who have demonstrated excellence and dedication in the corporate sector.

SOURCE: The Star

The PGCC was a proposed project to be located at the PTC grounds, carrying a gross development value of RM25 billion and to be built over a span of 15 years by its developer Abad Naluri Sdn Bhd, an associate company of Equine Capital Bhd.

Abad Naluri bought the land for RM488 million from the club in 2002 and had, among others, planned to include two five-star hotels, a performing arts centre, retail complex, monorail transportation and a world-class convention centre.

Following public opposition to the development, which was considered misleading and lacking in transparency with issues such as land rezoning and traffic congestion, along with a host of other concerns, the proposed project was officially declared “dead” after the Penang Island Municipal Council in 2008 rejected it on the basis of the developer’s failure to submit the layout plans on time and comply with the council requirements.

On Tuesday, Berjaya Corp Bhd founder and chairman Tan Sri Vincent Tan was in Penang to ink a sale-and-purchase agreement between Berjaya Land Development Sdn Bhd (BLand) and Penang Turf Club (PNTC).

BLand is buying 22.8ha of freehold prime land within PNTC for RM459 million cash, and is proposing to develop a low-density, exclusive, guarded and gated housing development comprising bungalows, semi-detached homes and low-rise condominiums with an abundance of landscape and garden areas to complement the serenity and exclusivity of the surrounding areas.

The company, unlike other property developers which have entered Penang in recent times, is set to meet the requirement of building affordable housing units within the same site, although these homes will be located away from the high-end residential units.

Tan made it clear to reporters when he was asked if there would be any controversy on the project, that he was not expecting any from those living in the neighbourhood of the PNTC.

This he said is because there is no retail component to the proposed development, and the condominium would only include two low-rise blocks.

As concerns about traffic congestion owing to an incremental impact of new residents to the area are likely to surface in due time, it would be prudent for BLand to take proactive measures and devise a traffic dispersal system.

On its part, the PNTC has to contend with decreasing horse-racing revenues, while doling out large sums in quit rent and assessment in recent times.

This is because the present site of the PNTC was originally given by the government for a nominal sum and zoned as an “Open Space”. However, this was changed in 2007 to a “Mixed Development” zone, to facilitate the PGCC project.

The club is now saddled with paying revised rates and has been making efforts to increase its revenue base.

In 2009, PNTC said it was planning to embark on a RM30 million development project to build 25 bungalow units on the fringes of the club, which can be rented out to generate income.

Plans for this development is still on the cards, the club’s officials said, and it is currently awaiting the necessary approvals to proceed with the project.

While BLand has made it clear that Penang has become much more attractive as an investment destination in recent times and the company is on the lookout for other opportunities, there should be no major issues or opposition arising from its planned development on the PNTC grounds.

At the end of the day, it is simply a property transaction between two parties, with hopefully no “ghosts” lurking in the shadows.

SOURCE: Business Times

PETALING JAYA: Berjaya Land Bhd (BLand) has entered into a conditional sale and purchase agreement with Penang Turf Club to acquire 57.3 acres of prime freehold land for RM459mil cash for high-end residential property projects.

In a filing with Bursa Malaysia yesterday, BLand proposed development that includes (but not limited to) the construction of bungalows, semi-detached houses, condominiums and apartment units on the newly acquired land.

“The salient features of the development are a low-density exclusive guarded and gated-up housing development comprising bungalows, semi-detached houses, condominiums and low medium cost housing (as required by the local regulations) cum abundance of landscape and greenery,” it said.

BLand added that estimated GDV of the project was RM1.52bil, However, the total development cost and the source of funds for the development would only be ascertained once the development plans were finalised. The property development is expected to be developed over five years.

Upon the execution of the sale and purchase agreement, BLand has to pay a deposit of RM20mil to Penang Turf Club while the balance of the deposit of RM25.9mil to be paid within 14 days after obtaing the planning approval. Subsequently, BLand will make the first payment of RM137.7mil within 12 months from unconditional date of the sales and purchase agreement while second payment to be paid within 12 months after the first payment followed by a third payment at a 12 months interval from the second.

BLand said the purchase price at about RM8.01mil per acre or RM184 per square feet.

“The purchase price will be funded through the internally generated funds of the BLand group and borrowings. The actual mix will be decided at later stage after taking into consideration the BLand group’s gearing, interest costs and other working capital requirements,” it said.

Meanwhile, Bernama quoted Berjaya Corp Bhd founder Tan Sri Vincent Tan as saying: “We’ve won the bid to buy 57 acres of land and we’re now planning to develop the land into an exclusive residential area comprising bungalows, semi-detached houses and low-rise condominium.”

Given the strong demand for high-end landed properties in Penang, Tan hoped the exclusive homes could further boost value of suburban housing in the area.

“In fact, at first, I wondered whether we’ve overpaid the price for the land, but we believe in the long term, it will turn out to be a good investment. We’re confident that with Berjaya’s commitment, this property will be developed into an important residential landmark in Penang,” he said.

Tan said Berjaya established its first property and hotel development in Penang in mid-1990s. “We’re happy to be back here again and to be associated with an established and reputable name like Penang Turf Club,” he said.

He said development of the 57 acres would not affect the turf club horse-racing activities which would be held on the newly repaired and rejuvenated main racing track.

Tan also said BLand was looking for other strategic and attractive places in Penang for investment.

In 2004, BLand has won the bid to relocate the Selangor Turf Club in Sungei Besi for RM640mil, and in return BLand gets the club’s land in Sungai Besi and plans to carry out a mixed development project valued at RM6.3bil.

SOURCE: The Star

GEORGE TOWN: Berjaya Land Bhd (BLand) plans to build a low-density gated residential project with an estimated gross development value of RM1.52 billion on its new Penang land.

The project will be marketed as high-end exclusive residences which will include bungalows, semi-detached and condominium units.

The company is also planning to site the required low and medium housing units within the site, but at a different location.

"We see a growing demand for upmarket landed properties in Penang and we hope to meet this demand with our development," Berjaya Corp's chairman and founder Tan Sri Vincent Tan said yesterday during the signing of a sales and purchase agreement for the land.

Signing on behalf of BLand was Tan, the company's chief executive officer Datuk Francis Ng and its non-independent executive director Tan Thiam Chai.

Penang Turf Club (PNTC), meanwhile, was represented by its committee members Datuk Seri Teh Choon Beng and Saw Lip Khai, general manager Leow Khin Ming and legal adviser Khoo Boon Chye.

The history of the PNTC dates back to 1864, and is the oldest of three turf clubs in Malaysia.

PNTC is located on 108ha of land with a racetrack of about 1,900m long and 24m wide, and the present usage of the site includes horse stables and equestrian masters' quarters and an 18-hole golf course.

Tan said the development of the project on the grounds of the PNTC will not affect the club's horse-racing activities which will take place on the newly-repaired and rejuvenated main racing track.

"However, the proposed sale will include the upper nine of the 18-hole golf course but the club will continue to maintain the bottom nine of the golf course."

The club is situated next to the upmarket Jesselton residential area.

In a filing to Bursa Malaysia yesterday, BLand stated that it paid RM184 per sq ft for the land and the purchase would be funded with internal funds and/or borrowings.

SOURCE: Business Times

 Berjaya Corp Bhd founder and chairman Tan Sri Vincent Tan yesterday said the company is happy to be back in the state.

“I was unhappy 18 years ago and I had said then that I don’t want to invest in Penang anymore.

“But I am pleased to be back here now as Penang has done well over the last few years,” he said in his speech at the signing ceremony of the sale and purchase agreement between Berjaya Land Development Sdn Bhd (BLand) and Penang Turf Club (PNTC) at the latter’s premises here yesterday.

BLand is buying 22.8ha of freehold prime land within PNTC for RM459 million cash.

BLand is proposing to develop a low-density exclusive guarded and gated housing development comprising bungalows, semi-detached homes and low-rise condominiums with an abundance of landscape and garden areas to complement the serenity and exclusivity of the surrounding areas.

Berjaya’s existing property development investment in Penang is Berjaya Penang Hotel in Pulau Tikus.

In early 1990s, Berjaya had plans for a futuristic theme park on Penang Hill which was aimed at reviving tourist trade.

The proposed project which included a 200-room hotel, a 350-unit condominium complex, omnimax theaters and a cable car at a cost of RM500 million, had met with strong protest from citizens’ groups who feared, among others, ecological damage to the hill.

The project was subsequently scrapped.

Speaking at a press conference later, Tan, without naming names, expressed dissatisfaction with the previous state government, helmed by former chief minister Tan Sri Dr Koh Tsu Koon (it was under Koh’s watch that the Penang Hill project was called off).

“Under the leadership of the late Tun Dr Lim Chong Eu,” noted Tan, “we received very strong support.”

“However, we were not happy with the government after that … but we are now back and looking for more opportunities to invest because we think Penang is an attractive place to grow,” he added.

Tan is not the first local investor to voice unhappiness with the previous government.

In 2005, renowned hotelier and property developer Tan Sri Low Yow Chuan said he had enough of the suffocating red tape and numbing bureaucracy in Penang, and threatened to pull out of ever doing any projects on the island.

Low then cited several plans for projects that had taken years to be approved.

However, one particular incident had made him raise his voice.

He recalled that his group had had approval for a 24-storey condominium block near where the historic E&O Hotel is now sited.

Ten years after obtaining approval and spending millions of ringgit for piling and engineering works to meet the local council requirements, the Penang authorities reverted to him and said he had to scale the building down to eight storeys.

Low was chairman of Asia Pacific Land Bhd from 1984 to 2002.

SOURCE: Business Times