Property developer Tambun Indah Land Bhd has received the Securities Commission's (SC) approval to list on the Main Market of Bursa Malaysia Securities Bhd.

In a statement today, the company said it has appointed MIMB Investment Bank Bhd adviser, managing underwriter, underwriter and placement agent for the initial public offering (IPO) exercise.

Its managing director, Teh Kiak Seng, said it was timely to seek a listing in view of the increasing demand for properties in mainland Penang.

"We believe it will enable us to strengthen our position as a major property developer here.

"Since the group's inception in 1994, we have been guided by our key principle to design and develop contemporary and high quality homes at affordable prices," he said.

To date, he said, Tambun Indah has sold more than 2,800 units of residential properties, mostly in mainland Penang, with a gross development value of more than RM800 million.

Tambun Indah's portfolio of completed/on-going projects include Juru Heights and Pearl Garden townships, Casa Impian and Casa Permai as well as Scotland Villas. — Bernama


SOURCE: Business Times

The turf club is the single largest prime land plot owner in George Town.

Mah Sing Group Bhd (8583) group chief executive Tan Sri Leong Hoy Kum confirmed that the company has indicated its interest for the Penang Turf Club land.

"We are always on the lookout for good development land, especially in the hotspots of Klang Valley, Penang island and Johor Baru where we've established a strong branding," he said via e-mail.

Other companies invited for the bid are believed to be Berjaya Land Bhd, IJM Land Bhd, IGB Corp Bhd and Eastern & Oriental Bhd.
There was speculation that SP Setia Bhd had also put in a bid but sources said the company was not involved in the submission.

Sources familiar with the plan said the companies were invited by Datuk Seri Teh Choon Beng, a horse trainer and chairman of the turf club, to make the submissions.

Teh could not be reached for comment.

Business Times reported recently that tenders for the land sale were called two months ago and closed on September 30.

Over 20 companies submitted their proposals for the pre-qualifying round, which closed on June 16.

"The validity of the submission is one year, which means Teh can award the land deal anytime during this period," a source said.

The reserve price for the land is RM200 per sq ft or around RM500 million.

The source said the land, located behind the horse racing track, will include a residential development, comprising high-rise and landed properties.

"There will be some commercial elements but very minimal," the source said.

The expected gross development value from the proposed project is around RM1.5 billion.

The club, set up in 1864, is the oldest horse racing club in Peninsular Malaysia. It owns some 104ha of land in the vicinity.

"For now, only 23.1ha have been offered for development. There may be more parcels later but it will depend on many factors," the source said.

SOURCE: Business Times

PETALING JAYA: To promote home ownership among Malaysians, the Government has proposed to introduce First Home Scheme whereby Cagamas Bhd will provide a guarantee on the 10% down-payment for houses priced below RM220,000.

The scheme is for first-time house buyers with monthly household income of less than RM3,000. It is aimed at young adults who have just joined the workforce.

With the guarantee from the national mortgage corporation, it means that eligible house buyers will be able to obtain a 100% loan.

First-time house buyers will also be given stamp duty exemption of 50% on instruments of transfer on a house priced at not more than RM350,000. The Government has also proposed stamp duty exemption of 50% be given on loan agreement instruments to finance such first-time purchase of houses.

To expedite the process of property registration, the Stamp Act 1949 had been amended to enable the Valuation and Property Services Department assess properties after the payment of stamp duty to the Inland Revenue Board. This will reduce the property registration process from 30 days to one day.

Welcoming the First Home Scheme initiative, Real Estate and Housing Developers Association (Rehda) deputy president Datuk FD Iskandar Mohamed Mansor said the scheme was good news for the housing sector, “as just over 73% of houses transacted falls under the category of below RM220,000.”

The 50% stamp duty exemption for houses below RM350,000 covers an estimated additional 10% of the market, and together the incentives benefit all-in-all roughly 87% of housing transactions throughout the country.

While Rehda views the measure as a very positive step towards closing the income gap, it acknowledges that properties which are found within these price brackets are not easily found in Greater KL or Penang due to higher land and construction costs in these vicinities.

Concurring with Rehda, C H Williams Talhar & Wong Sdn Bhd managing director Foo Gee Jen expects the First Home Scheme to have a lesser impact on the Kuala Lumpur market as the prices of most houses here exceeded the ceiling set by the budget.

“There will be more significant impact on housing demand in other cities such as Johor Baru, Malacca, Ipoh, and Kuantan,” he noted.

Reapfield Properties Sdn Bhd managing director David Ong said the Government’s “invisible hand” in steering the housing market was important in the light of the current market conditions.

“The Government is wielding its influence on two fronts – to help first time buyers and to signal to developers that a certain type of housing within a certain price range is needed. Developers can probably consider townhouses or condominiums within a certain price range,” Ong said.

Ong said hopefully, with this move, developers would build houses within this pricing category.

Khong & Jaafar managing director Elvin Fernandez said the Government’s move not only recognised first-time house buyers, “but also acknowledged them as newcomers into the workforce.”

“The perimeters set out in the budget are correct. This is the type of house this group will be able to afford. They will need this kind of assistance,” he said.

The move, he said, did not mean that the Government was not considering raising the downpayment for house purchase to 20% or 30%.

“That may still come later on as increasing the percentage of downpayment does not fall within the budget,” Fernandez said.

Ireka Development Management Sdn Bhd chief operating officer Lim Ech Chan said the First Home Scheme would enable first-time buyers to afford their first home and promote a healthy property market overall, encouraging more affordable housing to be made available.

Amphil Corp Sdn Bhd chief executive officer PK Poh said it was an excellent measure to provide the means for young households to purchase “starter” homes “as it will be a sort of forced savings and a hedge against inflation, besides saving money on rental.”

“In our major cities, this would often mean buying small one- or two-room apartments in areas a little further from their workplace than they might like. However, the securing of such a loan is still subject to the banker’s determination of the repayment ability of the borrowers.”

On the development of the 1,072ha Malaysian Rubber Board land in Sungai Buloh by the Employees Provident Fund, Poh said most developers were looking forward to the finalisation of the master plan and the granting of conversion and planning approval from the state.

“The land area comprises both freehold and leasehold lands and needless to say, developers would want to see how they could position themselves and participate in the roll-out of this massive development,” he added.

The mixed development comprising affordable houses as well as commercial, industrial and infrastructure facilities, is estimated at RM10bil and is expected to be completed by 2025.

SOURCE: The Star

AFTER undergoing a RM5mil conservation work, a budget hotel has been transformed into a cosy boutique hotel with excellent amenities in the heart of George Town, Penang.

Exuding a historic charm for those seeking to relax in a place of rich culture, the newly restored Yeng Keng Hotel on Chulia Street appears to take guests back to over 150 years ago when the building was first built.

As one walks down the corridors of this historic hotel, one cannot help but admire the vintage furniture and lime washed walls decorated with colourful works of art, including batik paintings.

Conservation and upgrading works began last year by the current owner, Hoo Kim Properties Sdn Bhd, and were completed in April.

Kim Com-pany Sdn Bhd and Kim Mansions Sdn Bhd managing director Datuk Ong Gim Huat spoke of a colourful history linked to the building that was originally a private residence built in the mid-1800s.

He said it was an Anglo-Indian bungalow, which was bought by an Indian Muslim family, but was sold to a group of Chinese businessmen who were trustees of the Cantonese Club ‘Yin Han Pit Shu’ in 1897.

Ong said they bought the building on behalf of the association and it was later donated to the trustees of the Straits Chinese British Association in 1939.

“In the early 1900s, the building was leased to another person who set up Yeng Keng Hotel. The traditional Chinese arch at the entrance was then constructed to add grandeur to it,” he said.

In 1985, the land for the budget hotel was bought over by Ong’s father. The hotel stopped operating in 2009 and its business was subsequently handed over to Ong.

“We wanted to restore the building to its original form apart from turning it into a friendly, homely sort of resort right in the middle of a heritage city,” he said.

Ong added that they engaged architect Laurence Loh, who restored the Cheong Fatt Tze Mansion on Leith Street, to help retain the building as much as they could.

“We did our utmost best to restore it like the original as well as making it modern and livable,” he said, adding that they even roped in skilled craftsmen from China to help with the restoration.

The 20-room hotel, which opened in June, has a small bar, garden, swimming pool and car park. Wi-fi service is also available while its newly opened kitchen will soon serve Hainanese, Chinese and Western food.

The hotel is located at 362, Chulia Street and can be contacted at 04-2622177.

SOURCE: The Star

MALAYSIA Land Properties Sdn Bhd (Mayland) aims to launch its maiden project in Penang, a high-end seafront mixed development worth more than RM2 billion by 2013.

The company is looking at buying 12ha in Penang island, some of which will include reclaimed land, said its director Andrew Chiu.

"We want to lay something like a corner stone development in Penang. We hope to get the land within the next 12 to 18 months," Chiu said in an interview with Business Times in Kuala Lumpur recently.

Chiu said the Penang project will be something like the company's on-going integrated Plaza Damas development in Sri Hartamas, Kuala Lumpur, which started in 1998.

Mayland – founded by Chiu's father, Tan Sri David Chiu, a Hong Kong-based hotelier and property developer is focused currently on developments in the Klang Valley and Johor.

It is looking to launch several new projects and sub-phases within its existing developments.

By end-December, it will launch Elements, a 50:50 joint venture project located off Jalan Ampang, Kuala Lumpur, with Land & General (L&G) Bhd, a company which is about 20 per cent controlled by the senior Chiu.

The RM800 million project will comprise 1,040 units of high-end serviced apartments, each pegged at more than RM800 per sq ft.

In Johor, Mayland plans to launch the final phase of its RM300 million Palazio serviced apartment project in Mount Austin.

The entire project has six 14 to 21 storey residential towers, with a total of 1,828 units. The first four towers, launched in 2009 and early this year, are almost 90 per cent sold, Chiu said.

In the first half of 2011, Mayland will launch projects worth in excess of RM2 billion, starting with a residential development in Pelentong, Johor Baru.

Chiu said the project will have 3,000 serviced apartments in five blocks, worth almost RM1 billion.

In Country Heights Damansara, Mayland will launch 300 units of serviced apartments and 250 townhouses, on 4ha, for RM800 million.

"I feel we are at a beginning of a bullish market and I am confident that most of our projects will sell well under this circumstances.

"We have many repeat buyers, who have experienced our projects appreciating in value by more than 100 per cent. We don't just want to sell a property, but a dream … a lifestyle," Chiu said.

Mayland still has 120ha of undeveloped land in the Klang Valley and 20ha in Johor. It is looking for more land to buy in Kuala Lumpur and Penang, he said.

SOURCE: Business Times