Eastern & Oriental Bhd (E&0) has been given three additional years to complete the reclamation works for phase 2 of the RM25bil Seri Tanjung Pinang development.

The property developer told Bursa Malaysia that its indirect subsidiary Tanjung Pinang Development Sdn Bhd (TPD) and the Penang state government inked on Wednesday a supplemental agreement to the 1992 concession agreement.

Under the supplemental agreement, the reclamation works that began in 1997 are required to be completed by Dec 31, 2022.

TPD, which is 78.8% owned by the E&O group and the rest by the Penang Development Corp, had completed the reclamation of 240 acres under phase 1 in 2005 and is now working on reclaiming 760 acres under phase 2.

It was previously reported that the reclamation concession would expire in 2019, and that the reclamation of phase 2 would take three to five years.

Wednesday’s supplemental agreement came a month after Chief Minister Lim Guan Eng said the Penang state government had written to TPD and another developer to get their consent to waive confidentiality clauses on land reclamation agreements made with them.

The STP project, approved back in 1992 by the state government, has seen its reclamation works being abandoned twice before E&O came onboard to revive it in 2003. One reason for the abandonment was the Asian financial crisis.

Another salient term of the supplemental agreement is that a total of 191.13 acres will be reclaimed and surrendered to the Penang government arising from STP Phase 2, which includes 131.09 acres at Persiaran Gurney.

In a Bursa announcement in November 2014, E&O said the planning permission for land reclamation works was conditional on it surrendering 191.09 acres of reclaimed land to the state, of which 110 acres will be the net area of land available for development (made up of 60 acres on the man-made island and 50 acres at Persiaran Gurney).

Another salient term in the latest agreement is that TPD may, after completion of reclamation, apply to convert those parts of the STP Phase 2 reclaimed land that can be alienated under the terms of the National Land Code 1965 (i.e. after providing for the portions to be surrendered to the Government and for various reserves) from land of leasehold to freehold tenure.

Conditional on payment of the requisite premiums and TPD also complying both with the provisions of the code and all conditions imposed by the state authority, the state government would approve the conversion.

E&O shares sank 6 sen on Thursday to close at RM1.38, with 2.032 million shares being traded.

Source: TheStar.com.my

Following the success of Eco Meadows gated and guarded scheme by EcoWorld, another commercial development has recently been proposed by Oriental Eagles Sdn. Bhd. along Jalan Paboi. It is located next to the intersection of Bukit Tambun exit, less than 2km away from Eco Meadows.

This is a 28-storey commercial development, comprising 11 units of 3-storey shop offices and 239 units of serviced apartments.

More details to be available upon official launch.

Project Name : (to be confirmed)
Location : Simpang Ampat
Property Type : Commercial, serviced apartment
Total Units: 239 (serviced apartment), 11 (shop office)
Built-up Area: (to be confirmed)
Developer : Oriental Eagles Sdn. Bhd.

Location Map:

Only World Group Holdings Bhd (OWG) expects to complete the project to revitalise the 65-storey Komtar tower in Georgetown, Penang, in the second half of this year.

The food outlet and water amusement park operator had announced on Monday that it would use RM48mil from the estimated gross proceeds of up to RM50.17mil from a private placement exercise to fund part of the total expansion cost of Komtar.

On Wednesday, OWG gave further details to Bursa Malaysia on the revitalisation project that it clinched from the Penang Development Corp in December 2012 (prior to its listing in December 2014).

The Shah Alam-based company explained that the Komtar revitalisation project involved the proposed refurbishment and enhancement of five specific levels within Komtar leased to OWG – levels 5, 59, 60, 64 and 65, with a total built-up area of 130,333 sq ft – to create high end commercial space for retail, food and beverages and recreational purposes.

OWG was granted a 45-year lease, with the option to extend the lease for another 15 years.

“Subsequently in 2015, additional floor (level 66) and new spaces (levels 3, 4 ,5 and 6) were added to the project which would at least double the total built-up area,” it said.

On Jan 18 when it announced the private placement, OWG gave the total expansion cost for the Komtar revitalisation project as RM180mil, substantially higher than the amount given in its initial public offering (IPO) prospectus. The remaining cost of the project, which is expected to turn Komtar into an integrated tourism destination, would be funded via internally generated funds and bank borrowings, it said.

In its prospectus dated Nov 26, 2014, OWG had said the revitalisation project would cost RM60mil and that it would use 60.44% (RM30mil) of its IPO proceeds to partially fund the project. According to the document, the project was scheduled for completion in the third quarter of 2015.

OWG shares lost 14 sen to close at RM2.39 on Wednesday.

Source: TheStar.com.my

Penang government today announced the rebranding of low-cost and medium-cost houses to affordable housing types A and B.

With the rebranding, low-cost houses costing RM42,000 each will now be known as affordable housing type A and low medium-cost houses priced at RM72,500, as affordable housing type B.

State Housing, Town and Country Planning Committee chairman Jagdeep Singh Deo said houses priced at RM150,000 each would be known as affordable housing type C; a house worth RM200,000 as type D; that costing RM300,000 as type E, and one costing RM400,000 as type F.

He said the Penang government had been studying the said rebranding based primarily on the fact that the word “low” had a very negative connotation and would bring about a stigma to the purchasers of such units.

“Further, it was noted that purchasers of such units would inevitably be first-time home buyers and it would not be proper to have such a connotation through such a label being given to their first roof over their head,” he said at a press conference, here, today.

However, he added, there might be legal implications as a result of such rebranding as there were several statutes that referred specifically to “low-cost” housing, which might require amendment.

* Click here for full list of affordable housing projects in Penang *

Source: Bernama

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