Those who are waiting for this proposed project at Batu Maung, you can expect to see the launch of the semi-detached and bungalow houses soon with the latest acquisition by PLB Engineering Bhd.

Read the news below:

PLB buys Penang property developer for RM23.5mil

PLB Engineering Bhd has acquired property developer Phoenix Residences Sdn Bhd (PRSB) for RM23.5mil.

The property development firm, whose shares were last month reclassified from construction sector to properties sector, told Bursa Malaysia that its unit PLB Land Sdn Bhd signed an agreement on Monday to acquire 100% equity interest in Penang-based PRSB.

PLB’s announcement did not specify the size of PRSB’s landbank or its exact location in Penang.

However, it said PRSB’s property came with approved development plans and development license already issued by the Urban Wellbeing, Housing and Local Government Ministry, making the asset a very marketable property.

“The value of RM23.5mil is justified considering the location of the property at the Penang Island, near amenities and infrastructure like the Second Bridge with much potential for value appreciation,” it added.

PLB said that based on PRSB’s audited financial statements for the year ended June 30, 2014, the company was in a net assets position of RM112,066 with a net loss for the year of RM76,906.

PLB shares were last traded at RM1.45 last Friday.

Source: TheStar.com.my

The Penang state is mulling various avenues to finance the operation of the rail system that forms part of its Transport Master Plan (TMP), among which is the set-up of a revolving fund with recurring rental revenue from property leasing once its planned 3,000-acre (1,214ha) land reclamation in the south of the island to finance the construction of the RM27 billion TMP is completed.

It is also considering taking full ownership of the entire rail system — comprising the light rail transit (LRT) and the monorail — as part of its long-term financial plan for the state’s transportation sector.

For starters, Chow Kon Yeow, Penang’s local government, traffic management and flood mitigation committee chairman, said the revolving fund could finance the operation of the LRT, which will be managed privately by a company selected via open tender.

“Public transport is a public good, so having a fund would be better. But it is too premature to identify how much the fund needs for operating costs. That will be subject to the contract awarded to the system operator … it will be on commercial terms.

“It would be ideal that once the approval is given, the operator comes in to work on the design and engineering with the consultant, although the construction of the system will take four to five years to complete,” he told The Edge Financial Daily.

But the state will not offer the use of the fund to the operator for maintenance or help with operation costs if it fails to run the infrastructure efficiently or if it incurs losses, said Chow.

He added that it will be a challenge to even meet the operation expenses of the planned rail system, but indicated that the state will take a leaf from Hong Kong’s management of its mass transit railway (MTR) system, which has proven to be profitable, as its revenue does not come only from ticket sales.

“You cannot rely solely on ticket fares. It (the rail system) has to also generate income from advertisements,” he said.

Chow was asked to comment on the financing model the state would take on to fund the entire RM9.7 billion rail system, which is regarded as the key to alleviating traffic under the RM27 billion Penang TMP.

On Aug 14 last year, the state appointed Gamuda Bhd-led SRS Consortium as the project delivery partner for the TMP. Also part of the consortium are Penang-based Ideal Property Development Sdn Bhd and Loh Phoy Yen Holdings Sdn Bhd.

Chow also said running a public transportion system using state funds is not really a novel idea, as it is similar to the federal government’s way of compensating highway concessionaires by using public funds to halt or delay toll rate increases.

Alternatively, Chow said the state can set up a department — like an LRT/monorail department — to run the rail system, as the capital expenditure for the infrastructure would be funded via land sales (on the reclaimed sites). This means the system will belong to the state.

“After owning the asset, we can run the system ourselves through the set-up of a department. We may establish a Public Transportation Corp to oversee the processes, and eventually, the entity will take over the asset in the future.

“We will then appoint operators (as in concessionaires). These are the ideas we are discussing now as it demonstrates our long-term vision to sustain the operation of the rail system,” he said.

The first priority of the TMP is the LRT linking Komtar and Bayan Lepas, he said, followed by the Pan Island Link, a 20km road connection that connects Tanjung Bungah to the Penang International Airport.

As for the LRT connecting George Town and Butterworth, and the monorail between Tanjung Bungah and George Town, those will be part of Phase Two that may take off 10 to 15 years later, according to Chow.

The detailed environmental impact assessment studies for the Bayan Lepas LRT and the land reclamation are expected to be completed and submitted to the department of environment by the end of June.

Source: TheEdgeMarkets.com

by Charles Tan

If we are buying a new place with two car parks and there are available car parks for sale, should we buy one more? These days, all condos should come with 2 car parks. Read here: Condos should NOT come with just one car park. A lady wrote in to ask about this. She had just bought a new apartment in Penang. It came with two car parks and she was offered the opportunity to buy one more for RM35,000. Her reason for buying? Her son would most probably be driving to college next year. In other words, that third car park would be for her son’s use.

I wrote her an answer as below:

Start of reply

I think emotionally you believe another car park is needed so that your son can also park his car within the condo. Let me tell you the financial aspect. If you rent a car park instead of buying. Typical rental per month is RM80 if not higher, depending on the condo. If it is RM80,then it’s RM960 per year. This is a total loss every year.

Assuming, you take out RM35,000 from your FD to pay for this car park. This RM35,000 FD would give you about RM1,400 per year. This is about RM117 per month. If the car car rental does not change at all and remain RM80 forever, you lose RM37 per month or RM1.23 per day. I would definitely choose to lose RM1.23 per day for the following:

1) Safety (instead of parking far away and walking when I come back at midnight etc.) – For your son, might be weekly….

2) Convenience (Rain / park faraway etc.) – Nearly daily….

3) It’s impossible for car park rental to stay at RM80 forever…. (In KL, the car park rental is typically Rm160 per month) – proven in KL.

4) You can afford it. (For those who couldn’t and needed to borrow money from relatives etc, I think better not buy lah)

5) In future, three car parks would be advantage if u want to sell your place.

End-of-Reply.

One important point I missed. This is in Penang. Car parks are definitely a premium today and in the future. Actually, there are lots of other reasons why more car parks would always be better. Seriously, if we can afford it today, better buy today because we may not be able to afford it in the future. RM35,000 per one car park slot? It may not stay this way forever. Happy buying and enjoying the 3rd car park.

>> This guest article comes courtesy of my friend, Charles, the founder of kopiandproperty.com. He is popular for sharing his thought on property investment mostly based on his own 13 years experience as well as from all the readings and conversations with property gurus in the industry. (Source)

A mixed development proposed by Eonlite Ventures at Jalan Patani in Georgetown. This development will see the demolition of the existing office and warehouse building located next to Jalan Patani Flat, for the construction of a 21-storey condominium and shop offices.

The new condominium will consist of 108 residential units in two different sizes. There will also be 6 units of 4-storey shop offices with underground car parks.

This project is still pending for approval. Details to be available upon project launch.

Project Name: (to be confirmed)
Location: Georgetown, Penang
Property Type: Mixed development
Built-up Area: 1,000 sq.ft. & 1,250 sq.ft. (condo)
Indicative Price: (to be confirmed)
Total Units: 108 (condo), 6 (shop office)
Developer: Eonlite Ventures Sdn. Bhd.

Location Map:

Aerial view of Bandar Tanjung Pinang / Gurney Drive

Ewein Bhd’s subsidiary is buying 50 acres of land at Bandar Tanjong Pinang, Penang for RM2.83bil for a proposed “Wellness City of Dreams” resort.

The Penang-based property company said on Friday its 60% owned Ewein Zenith Sdn. Bhd had inked a memorandum of agreement to buy the land from Consortium Zenith BUCG Sdn. Bhd at RM1,300 per sq ft.

At 2.178 million sq ft, the purchase price would be RM2.83bil, it said.

The development would comprise a wellness resort, apartments, resort, retirement and healthcare residential suites, serviced apartments with wellness facilities, SOHO and ambulatory services.

“The proposal will be funded entirely by internally generated funds of Ewein,” it said.

Ewein said the proposal was in line with the group’s strategy to increase its land bank in order to expand the group’s revenue base particularly in the property development division.

The directors of Ewin Senith are Datuk Ewe Swee Kheng, Datuk Zarul Ahmad Mohd Zulkifli, Chan Gooi Yew, Datuk Lee Chee Hoe and Chuah Poh Lim.

Consortium Zenith’s core activities are construction and project management. The directors of are Datuk Zarul Ahmad Mohd Zulkifli, Datuk Lee Chee Hoe, Datuk Abdullah Sani Ab Hamid, Shahidan Shafie, Wong Kwai Wah, Harjinder Singh A/L Saudagar Singh, Ibrahim Sahari and Li Guangyao.

Ewein said on Dec 28 last year, Consortium Zenith had signed a sale and purchase agreement with Ewein Zenith II Sdn Bhd, a 60% subsidiary of Ewein to dispose all that piece of freehold land in Section 1, Bandar Tanjong Pinang.
The 4.4252 acres (192,761.7 square feet) of land was for RM162mil.

According to the statement then, the proposed acquisition is in line with Ewein’s strategy to increase its landbank in order to expand the group’s revenue base, particularly in the property development division.

“In light of the strategic location of the land, which is in a matured and established prime area for residential and commercial purposes, the board opines that the said land is strategic for the future development of the group,” deputy chairman and group managing director Datuk Ewe Swee Kheng had stated then.

The remaining 40% of Ewein Zenith II is held by Consortium Zenith, a construction company that was awarded the works for the major roads project and the third link (tunnel) project in Penang by the State Government of Penang for RM6.3bil.

Ewein expects to complete the acquisition in the first half of 2016. The company plans to develop residential and commercial properties on the land.

Source: TheStar.com.my