AVENUE Properties Bhd has introduced a scheme for retail investors to buy interests in properties.

The company launched yesterday Avenue Hotel Property Interest Scheme, offering 10,500 property interests or units where 70 per cent are available for the public to buy at RM4,800 each.

Chief executive officer Richard Woo said the scheme will offer property interest or unit holders seven per cent returns per annum, for the first 14 years of its 35-year tenure.

The rate of return is higher in comparison to fixed deposits, the Employees Provident Fund and endowment policies, where the returns are two per cent to six per cent, but lower than investing in properties and bonds.

Unit holders will be investing in a 130-room four-storey boutique hotel on Jalan Raja Uda in Butterworth, Penang, and the returns will be paid annually.

Woo told reporters that the rate of return will be more than seven per cent after the 14th year onwards, as the market matures.

He said the property interest is not transferable and neither can it be disposed of by unit holders during the first 12 months from the date of take-up.

"We expect the property interests to be fully subscribed over the next three to three-and-half-years, generating some RM50 million for the company," Woo said.

The business hotel, which is being constructed for as much as RM30 million, will be completed by the first quarter of next year. It is part of a 24ha rehabilitation project being undertaken by Avenue Properties.

Other components of the project, which is estimated to have a gross development value of RM500 million to RM600 million, are condominiums, a mall, and shop offices.

Khong Yue Chen, Avenue Properties group director for marketing and communications, said it is expecting an average room occupancy rate of 60 per cent in the first year of operation, with average rate of RM280 per room a night.

She said the company will offer a collection of resorts and villas next for unit holders to invest in.

SOURCE: Business Times

PETALING JAYA: Dijaya Corp Bhd wants to build up its market presence in Johor and Penang, and expects to see a bigger contribution from the two growth markets.

Although the central region of Selangor is still the biggest contributor accounting for more than 70% of the company’s sales and bottomline, Dijaya managing director Datuk Tong Kien Onn is looking at bigger contribution from the northern and southern regions.

“We want to build a stronger presence in these two markets to take advantage of the strong growth in Penang and Johor,” Tong told StarBiz.

Over the next two to three years when the projects started to move, he said contribution from Selangor was expected to drop to about 40%.

Dijaya plans to launch RM1.1bil worth of projects this year compared with about RM700mil last year. For 2012, it is targeting sales of between RM650mil and RM700mil. Last year, it sold about RM420mil worth of properties.

In Johor, Dijaya has two joint ventures with Iskandar Waterfront Sdn Bhd for projects in Danga Bay.

The first project, Tropicana Danga Bay on 37 acres is a 60:40 joint venture between Dijaya and its partner. The project under the joint venture company, Global Corporation Sdn Bhd is located only about five minutes to the Johor-Singapore Causeway. The land was purchased at a cost of RM318mil about 1½ years ago.

Tropicana Danga Bay with expected gross development value (GDV) of RM3.8bil will comprise 60% commercial and 40% residential components. It will take eight to 10 years to complete. The first phase comprising a block of 420 service residences was launched last December at average prices of RM620 per sq ft. Tong said about 90% of the non-bumi lots have been sold to-date.

Dijaya also has a 50:50 joint venture with Iskandar Waterfront Sdn Bhd to undertake the 225 acre Tropicana Danga Cove. The land was bought for RM220mil in the last quarter of 2011.

The RM2.8bil development is expected to take 10 to 12 years. Construction of the project may kick off in March with the first phase comprising 3-storey shop offices.

In Penang, Dijaya has set up a 55:45 joint venture with Ivory Properties Group Bhd to buy and develop a 41.02ha site in Bayan Mutiara. The joint venture company, Tropicana Ivory Sdn Bhd paid RM1.07bil for the land and the repayment period will be over five years.

Tropicana Ivory will undertake a mixed residential and commercial property project with GDV of RM9.8bil over the next eight to 12 years.

Last Thursday, Dijaya received the nod from its shareholders to enter into the joint venture with Ivory Properties.

Tong said the master plan for the Penang project would be finalised in the next two to three months and the mixed integrated development is set to showcase some iconic structures.

Meanwhile, in Selangor, projects in the pipeline this year will comprise two new projects in Tropicana Indah Resort Homes namely Golf Villas and Tropicana Garden.

In Subang, Dijaya plans to build three-storey link, semi-detached and bungalow houses, condominiums as well as commercial development on its 35.4ha landbank.

Also in the pipeline will be bungalows, link houses and semi-detached units at Tropicana Cheras and Tropicana Balakong.

SOURCE: The Star

Malaysia-listed premier lifestyle property developer Eastern & Oriental Bhd (E&O) has announced the official launch of Andaman at Quayside, luxurious Andaman Sea-facing condominiums touted to be the finest on Penang Island.%9

Andaman at Quayside is sited on 8.5 ha. of the final, most-prime plot on
E&O’s acclaimed world-class masterplanned development, Seri Tanjung Pinang, with 75 per cent of all suites providing unobstructed views of the sea and the famous Gurney Drive.

Featuring a 1.8 ha. signature waterpark and clubhouse surrounded by an
additional 2.8 ha. of tropical gardens along with a world-class retail
enclave, Andaman at Quayside offers lifestyle and entertainment experiences
by-the-sea.

Eric Chan, Deputy Managing Director of E&O, said, "We conceptualised Andaman at Quayside to celebrate the best facets of island living in Penang.
%9
"The Andaman at Quayside sits within Penang Island’s largest seafront
development and most sought-after residential address," he said in a statement here today.

Apart from competitive pricing, the project's interest-absorption scheme
offers another incentive for investors seeking to get a slice of vibrant
Penang’s property pie with just a 10 per cent initial down payment, while the
availability of up to 90 per cent financing (subject to eligibility) makes it
even more attractive. For more information, check out www.quaysideresort.com — Bernama


SOURCE: Business Times

Eastern & Oriental Berhad (E&O) is launching the RM1.2bil Andaman at Quayside project at Tanjung Seri Pinang, Tanjung Tokong, on Saturday.

E&O (Penang) marketing and sales head Christina Lau said that to add flavour to the launch, a special observation platform had been constructed at the 2.5ha project site for visitors to admire the spectacular sea-view surrounding Andaman at Quayside.

The platform is built 15.2m away from the project which comprises three tower blocks of 548 condo units.

Refreshments will be served throughout the launch which runs from 3pm to 7.30pm.

“Other highlights include an exclusive talk on the yachting lifestyle in Malaysia by Simpson Marine, Asia’ s leading yacht broker.

“A special treat is in store for visitors who make bookings that day.

“They will receive a voucher for a Simpson Marine yacht ride for two which will depart from the Straits Quay marina nearby,” she said.

Lau said visitors would also get to view fully furnished show units for three types of designs.

They can check out the actual fittings, furnishings and appliances offered.

“To demonstrate the practicality and functionality of the fitted kitchens in Andaman units, pastry chefs from E&O will be conducting baking demonstrations right at the show unit kitchens,” she said.

The Andaman at Quayside project is located on 2.5ha within the 8.4ha Quayside development.

Prices start from RM973,800 with unit sizes ranging from the compact one-bedroom at 914sq ft to the spacious three-bedroom at 2,800sq ft.

About 75% of the condominium units have unobstructed views of the sea.

Source: The Star

PETALING JAYA: The Malaysian Institute of Estate Agents (MIEA) expects a slowdown in the high-end residential property sub-sector this year as potential buyers are likely to maintain a cautious approach in light of the economic uncertainties in Europe and the United States.

“There is a lot of caution now due to the uncertainty in Europe and the United States. With fear of a potential spillover effect, most buyers are adopting a ‘wait-and-see’ approach,” said MIEA president Nixon Paul.

“We don’t expect to see any slowdown for property transactions within the RM300,000-to-RM600,000 range and believe there will still be a lot of activity within this segment.”

Paul said the various “checks and balances” by Bank Negara to control the increase in household debt would also affect residential property transactions.

Starting this year, banks have been using net income instead of gross income to calculate the debt service ratio for loans.

According to reports, this is a pre-emptive move by Bank Negara to contain the rise in consumer debts. The guidelines cover housing, personal and car loans, credit cards, receivables and loans for the purchase of securities.

The MIEA is the authorised body representing all registered estate agents in Malaysia.

Paul said there was an over-supply of condominium units in the country and that rental rates for such units could be affected.

Despite this, he said, it would be a good time now to invest in the high-rise market for long-term investors.

“We are one of the cheapest in the region and if you are looking to invest over the long term, say 10 years, now is a good time to get into the condominium market. Over the next decade, prices will appreciate.

“But if you’re dependent on rental income to service your loan, I wouldn’t advise it.”

Paul noted that rising property prices in Malaysia had forced many people to buy homes further away from the city.

“I do feel sorry for the average guy, but if you look anywhere else in the world, it’s a natural progression. Those who can’t afford it live further away from the city.

“It’s happening in cities all over the world. Out of necessity, you’ll see more people buying condominiums instead of landed property.”

Paul said one of the main issues facing residential property transactions today was the big disparity between the intended property price and valuation price.

“A buyer and seller might agree on a particular price but the valuation might not be the same. When that happens, the loan application procedure becomes a problem and the deal ends up getting aborted,” he said.

Separately, Paul said the commercial property sub-sector would be buoyant this year.

“It’s going to be a buzz! Most investors are shifting to commercial from residential because they feel this sub-sector is more resilient, especially in a downturn,” he said, adding that there was pent-up demand for commercial property in Malaysia.

“We believe that the industrial sub-sector will also be quite active. Property prices in Bukit Jelutong and Glenmarie are at an all-time high.”

Paul said the office sub-sector might face a slowdown due to oversupply in space.

“There is an oversupply of office space. Rentals in prime locations such as KLCC may not be affected but not those located in the outskirts of the city,” he said, adding that major shopping complexes, especially within Kuala Lumpur, would continue to experience good take-up this year.

Despite the global uncertainty, Paul said that property was still the “best place to invest in.”

“It’s still the safest place to put your money in. These days, a lot of people are shifting their investments into property. You can hedge yourself well against inflation when you invest in property,” he said.

SOURCE: The Star