BOLTON Berhad’s second tower block of the Surin condominium project is on schedule to be completed by the first quarter of 2013.

Group executive director Chan Wing Kwong said about 60% of the block comprising 192 units had been completed.

He said: “The buyers of the Surin are mainly locals. They buy with the objective to stay. There are no sub-sales.”

He was speaking at an exclusive preview of the Surin’s completed first tower block of 198 units for business partners and associates, real estate agents, and the media.

Initially when launched in 2008, the price per sq ft of a Surin condominium was around RM300, compared to about RM600 presently,

Chan said that currently, there were only 13 units still available, and they were the three-bedroom unit (1,307sq ft) and four-bedroom penthouse (2,827sq ft) priced from RM690,988 and RM1.35mil respectively.

Residents of Surin will be able to enjoy amenities such as an infinity swimming pool, a rooftop garden, two covered car park bays per unit, three-tier security, a barbeque area and sky decks.

“Surin residents get unparalleled vistas of the sea and green hills during the day, offering probably one of the best all-round views amongst the newer condominiums in Penang.

“Surin is equipped with facilities that include a swimming pool, gymnasium and playground,” he added.

The completed first tower block of 198 units is completely sold with certificate of fitness obtained, while the second tower block of 192 units is 93% sold.

Source: The Star

KUALA LUMPUR: Lifestyle developer Mah Sing Group Bhd has reported a RM168.6 million net profit on the back of RM1.6 billion revenue for its financial year 2011.

This represents 43 per cent and 41 per cent increases respectively against the net profit and revenue achieved in 2010.

Property development projects that contributed to Mah Sing's revenue and profit during the year under review included Garden Residence in Cyberjaya, Kinrara Residence in Puchong, Perdana Residence 2 in Selayang, M-Suites in Jalan Ampang, One Legenda, Hijauan Residence and Bayu Sekamat in Cheras, and Icon Residence in Mont' Kiara.

The group closed 2011 with some RM2.26 billion locked in property sales, surpassing the previous year's full sales target of RM2 billion.

Group managing director and chief executive officer Tan Sri Leong Hoy Kum said the 2011 financial performance marks a new record high and represents more than 46 per cent improvement from the RM1.55 billion achieved in 2010.

As for this year, Leong said the group is on track to meet its sales target of RM2.5 billion. "We achieved about RM338 million as at February 15," he said in a statement.

Meanwhile, Mah Sing also intends to roll out at least RM3 billion worth of property launches this year to achieve its sales target.

Leong said the greater Kuala Lumpur projects are expected to make up the bulk (68 per cent) of the launch targets, while Penang and Johor Baru are expected to contribute 20 per cent and 12 per cent respectively.

"We have a clear focus on residential projects this year, and our high-rise and landed residential projects make up 75 per cent of our launch targets.

"Commercial projects are expected to be a strong contributor, at 22 per cent of launch targets, and industrial projects to make up the balance 3 per cent," he said.

Leong said close to 70 per cent of Mah Sing's launches will come from products with an average unit price of RM1 million and below, in view of the current market sentiment and pent-up demand in this segment.

Launches planned for this year include new and existing residential projects such as Kinrara Residence, Garden Residence 2 in Cyberjaya, Garden Plaza in Cyberjaya, M-City in Jalan Ampang, Icon Residence in Georgetown.

SOURCE: Business Times

PLB Engineering Berhad is launching, via its subsidiary PLB Land Sdn Berhad, a RM270mil mixed-development project on a 20.2ha site in Balik Pulau, Penang.

It is called Prestige III Central Park City and the project will commence in the second quarter of 2012.

Group executive chairman Datuk Ong Choo Hoon (pic) told a press conference that the project comprised 919 units — 322 single and double-storey terrace homes, 40 double-storey semi-detached houses, 57 double-storey shop offices, and 500 medium and low medium-cost apartments.

“The project, comprising three phases, will be completed in 2016.

“The first phase should be completed in 2014.

“We will kick off the project in April or May with the launch of 242 units,” he said.

The prices of the single-storey terrace and double-storey terrace houses are RM360,000 and RM460,000 respectively.

The double-storey semi-detached houses cost RM600,000.

The highlight of the project is a 1.2ha park for the residents to enjoy the greenery, the river and streams.

“The project has received overwhelming response,” Ong said.

He said the group would also launch 98 medium-cost apartments on a site larger than one acre in Sungai Nibong this year.

“The project is planned according to the new density guidelines of the state government which allows for 87 units per acre. Under the new ruling, 15% of the units have to be priced between RM200,000 and RM300,000,” he said.

“We are also targeting to launch a RM1bil township project in Paya Terubong on a 28.3ha site in two years,” he said.

The group is also planning a RM45mil low density medium-cost apartment project in Teluk Kumbar later this year.

“We have also submitted plans for light industry factories in Juru Auto City and Mak Mandin.

“The estimated sales revenue for these projects is around RM115mil,” he said.

Source: The Star

Applications are coming in for the RM40mil Penang SME Centre which is scheduled to open in June this year.

It has received enough to cover about 100,000sq ft of the floor area of the 166,874sq ft building.

Penang SME Centre management council chairman Datuk Seri Kelvin Kiew said about 10 small and medium companies from the electronics and semiconductor manufacturing sector were being considered for the four-storey building at the Bayan Lepas Industrial Park.

“The rental at the centre is very competitive at RM1.50 per sq ft for the second floor compared to RM2.50 per sq ft in the market for a similar level.

“The rental for the first floor at the centre is RM1.80 per sq ft,” he said in an interview.

Kiew added that during times of economic crisis, the centre could help local small and medium companies to expand as the cost to rent was at a very low rate.

The key business areas that the centre aims to promote are research and development, manufacturing activities for the light-emitting diodes (LEDs), solar power manufacturing, industrial electronics, and the semiconductor industry.

Meanwhile, investPenang general manager Loo Lee Lian said tenants at the centre could tap into investPenang and Penang Development Corporation’s industrial network to gain access to venture capitalists, research and development centres, and potential markets.

“The tenants will be promoted to local multinational corporations with the aim of becoming preferred suppliers.

“The centre will also serve as a local supply chain showcase to foreign and local investors,” she said.

Loo said the tenants would also be given priority to move into the proposed SME village in Batu Kawan.

Source: The Star

There are still several questions left unanswered by the Penang government over the sale of the prime property.

Several Penang-based analysts and local community leaders have questioned the Penang government for selling a 41.5ha plot of prime state land to a private developer, Ivory Properties Group Berhad, for RM1.07bil.

Their concern is understandable due to scarce availability of state-owned land on the island which may hinder the ability of the state government to drive a balanced development and ensure it does not drive out the lower middle-income group from the area.

Most private property projects on the island are focused primarily on premium and luxury property which have driven up prices beyond the reach of most Penangites. There is worry that the sale of the state-owned Bayan Mutiara land to a private developer may end up in a similar fate.

Apart from escalating property prices, there is a concern that the land may have been sold below the prevailing market value. The state government had explained that the current selling price was above market value at the time of transaction.

However, it does not explain if it is usual to allow the purchaser a period of five years to settle the full payment. Did the transacted price factor in any interest payment accrued by the five-year payment period?

The opportunity cost derived from a potential increase in land premium over the next five years should be included to ensure that it is a fair deal.

Accusations and allegations of a lack of transparency in the tender process should be comprehensively addressed by the state government. Critics had alleged that the sale was done through direct negotiations between the state government and the purchaser.

Without justifying the five-year payment period, these allegations will create doubt over the much ac­­claimed transparency and ac­­count­ability of the state government.

Moreover, the allegations are peppered by talk that a bidder who is prepared to make a full payment for the purchase was not selected during the tender process.

Some analysts have questioned how can the sale benefit the people? They wonder why the development of Bayan Mutiara cannot be taken up by the Penang Development Corporation (PDC) which has the capacity and experience to handle people-centric development projects such as the Penang Free Trade Zones, housing estates, Komtar and others.

Regrettably, the issue of public accountability and good governance has been grossly politicised by certain parties. Politicians have gone to the extent of throwing down the gauntlet of challenging each other to resign over false allegations related to the land sale. We expect such showmanship from politicians but we deserve straight and accurate answers from them.

Politicising this issue is going to deprive many concerned stakeholders a chance to ask relevant and legitimate questions about the decision to sell the land to a private developer.

Chief Minister Lim Guan Eng had described allegations of wrongdoing over the tender award for the Bayan Mutiara mixed deve­lopment project by PDC as “a pack of lies”.

While some of these allegations may be malicious, it is pertinent for Lim’s administration to identify legitimate concerns over the sale. He should acknowledge that the state government controls less than 5% of total land size on the island and this calls for a prudent and strategic management of state-owned prime land.

Hence, it is best for his administration to address these issues immediately in order to convince the people of Penang that it has taken the best interests of the people into consideration before agreeing to the sale. Major issues include:

> What was the rationale to allow a five-year payment period to the purchaser? It gives an impression that the purchaser may not have secured financing for the purchase.

> Is it true there was another bidder who was prepared to pay an upfront full payment for the asking price?

> Did the transacted price factor in any interest charges or projected land price appreciation over the next five years?

> Is there any restriction or precondition between the state government and the purchaser to discourage any sub-sales? If the purchaser were to divide and resell some parcels of the land to other developers at a higher premium, it may further drive up property prices on the island. If such sales were allowed, is the state government entitled to a share of the higher premium?

> It is understood that the government would like to use the proceeds from Bayan Mutiara land to finance its low-cost housing scheme in Batu Kawan. While the low-cost housing scheme is welcomed and encouraged, the state government needs to justify if the sale of Bayan Mutiara land is the best option to help finance the project.

> Lim said part of the RM500mil financing for the housing scheme came from the state coffers. If this is the case, what is stopping the state from raising money through external sources to fund the entire project and carefully weigh all options to optimise the use of the Bayan Mutiara prime land bank?

Bayan Mutiara is no longer about selling above the current market value but the use of scarce prime land on the island for the purpose of socio-economic transformation. Ownership of prime land is very crucial for the state government to drive the state’s economy.

We do not want a repeat of high premium-reclaimed lands being sold to private developers who in turn inflate property prices in Penang and raked in billions in profit at the expense of the people.

Bayan Mutiara could be what the state government needs to help transform the landscape of Penang and create new attractions to boost its attractiveness as a tourism and cultural destination and a services hub.

Time will judge if the current state government has made the right decision on Bayan Mutiara and if the proposed plan is not going to turn out to be just another expensive commercial project by a private property developer.

Source: The Star