Some 1,000 acres of the land on the two islands that will be reclaimed to the south of Penang island as part of the state government’s land swap deal with SRS Consortium for the Penang Transport Master Plan (PTMP) have been earmarked for industrial development.

Recall that on Nov 27, SRS Consortium project manager Szeto Wai Loong said the two islands, measuring 1,300 acres and 2,100 acres, would be reclaimed at a cost of RM7 billion to RM8 billion respectively. An 800-acre island next to these islands had also been identified for further reclamation in future, pending the state’s needs.

Yesterday, Ideal Property Development Sdn Bhd (IPD) director Datuk Alex Ooi told reporters that the 1,000 acres earmarked for industrial development would feature sites for the electronic and electrical sector, as well as light industries.

“There is no other industrial cluster which is as big as this in Southeast Asia, so we want to provide that space,” he said.

He added that the RM27 billion PTMP is viewed as an economic transformation project for the state, with a five-time multiplier effect in terms of economic benefit from the project — which is easily RM135 billion — and as such, is Penang’s growth catalyst.

Ooi said the remaining acreage would be allocated for green area (1,000 acres), a dam, airport expansion, administrative buildings, sewage plant, offices and residential units.

IPD, a subsidiary of Ideal Property Group Sdn Bhd, is one of three players — including Penang-based Loh Phoy Yen Holdings Sdn Bhd — in the SRS Consortium, the appointed PTMP project delivery partner that is led by Gamuda Bhd.

Ooi said the consortium has spent more than RM10 million on preliminary studies for the land reclamation.

The reclamation, identified as a land swap model to finance the PTMP, is expected to take off in 2018 once federal and state approvals for the project component are attained.

It was previously reported that the cost of the detailed environmental impact assessments for the road, rail-based public transportation and the reclamation would amount to about RM300 million to RM400 million, and would be borne by the state.

A tender for the reclamation will be called once approvals from the authorities are completed and the detailed design for the rail-based segment is completed.

Meanwhile, Ooi said the Penang entities’ role in the project, including Loh Phoy Yen’s, is to provide local expertise for the project.

“Our job is to provide local expertise. We will liaise with the local authorities and carry out consultations with fishermen and other stakeholders. From feedback on the ground, about 90% of it was favourable,” he said.

Source: TheEdgeMarkets.com

Penang-based property player Ideal United Bintang Bhd (IUBB) plans to stick to affordable housing projects in the next two years, given the slowdown in the economy and property sector in the country.

IUBB’s executive chairman Datuk Alex Ooi Kee Liang said at present, the group will be concentrating on its maiden development, the I-Santorini located at Tanjung Pinang, Penang.

“The I-Santorini is an affordable housing development that consists of 2,155 residential units, as well as shop offices, with a price range of between RM300,000 to RM500,000 per unit. The total gross development value for the project is approximately RM900 million,” he told reporters, after the group’s extraordinary general meeting (EGM) today.

Property development is not unchartered waters for Ooi. His private vehicle Ideal Property Group is a renowned developer in Penang, with properties such as the Imperial Residences and the Solaria Residences in Bayan Lepas under its belt.

Ooi took over the reigns of heavy machinery importer and exporter United Bintang Bhd in October 2013, and subsequently in April 2014, the group announced that United Bintang was diversifying into the property development business. The group then changed its name to Ideal United Bintang in May 2014.

“At present, the undeveloped landbank for the Ideal Property Group in total is 250 acres, which we intend to develop over the course of the next 10 years. We will also look into developing more affordable housing projects and injecting these projects into IUBB,” he said.

He added that while I-Santorini would be the focus of IUBB at this juncture, the group is also looking at more affordable developments in the Bayan Lepas and Green Lane areas in Penang.

“We intend to allocate 75 acres or 30% of our 250 acre undeveloped landbank for affordable housing projects. This includes the allocation for the I-Santorini project,” said Ooi.

Besides its affordable housing development, the group will also be working on the renovation of 22 floors of the 26-floor Menara LA (previously known as Menara Liang Court) located on Jalan Sultan Ahmad Shah, Penang, and subsequently sell its floors by the first quarter of next year.

IUBB shareholders gave their approval for the group to acquire 10 floors of the building for RM15.04 million in November last year. At its EGM today, the group’s shareholders approved the acquisition of another 12 floors for RM19.5 million. The remaining floors of the building not owned or being acquired by IUBB are owned and occupied by AmMetLife Insurance Bhd.

“One of the interested buyers is a local, while the other is from Singapore. IUBB’s intention is to renovate the floors that we own and sell it. Two floors will be reserved for commercial use. The rest, we intend to convert into a hotel, somewhat like a three-four star express hotel concept, depending on the buyer’s specification.

“As for the selling price, that would again depend on the specification from the buyer [on the magnitude of renovations required],” he said.

IUBB shares closed unchanged at 92 sen today, for a market capitalisation of RM64.94 million.

Source: TheEdgeMarkets.com

There appears to be a new scam in town and it is targeting people who are looking to rent a place.

A nurse who wishes to be known only as Charmaine was almost conned by a “Mr Sim” and his wife “Madam Chew” after she contacted them about a room the couple was leasing out in Singapore.

They had advertised a one-bedroom apartment on a legitimate rental website for S$500 (RM1,513) monthly, cheaper than the average range of between S$900 (RM2,762) and S$1,500 (RM4,543) per month.

Charmaine, 22, was scheduled to start work at a private hospital in Singapore.

She and the couple communicated solely through e-mail and WhatsApp.

“Sim said he’s a reverend and a missionary in China while Chew is supposedly deaf,” she told a press conference at Wisma MCA here yesterday.

Charmaine did not suspect anything amiss until she was asked to help forward a payment from a previous tenant to Chew.

The previous tenant was said to be in Malaysia and owed them five months’ rental amounting to RM4,270.

“They said since I am taking over the room and I am depositing my money for the lease, I could also forward the former tenant’s money as Sim was out of the country and Chew could not communicate through phone.

“The former tenant, Nalini, banked in the amount to my account,” she said.

However, alarm bells rang for the nurse when she was told to transfer the money via MoneyGram Online to a man named Adeniyi Oluwasegun Adebajo in South Africa.

Scared that she was involved in a scam, Charmaine immediately closed her bank account and lodged a police report.

She also returned the money to Nalini, who turned out to be another victim of the couple.

“Nalini was told by them that I was Chew’s personal assistant,” Charmaine said.

MCA Public Service and Complaints Department chief Datuk Seri Michael Chong said although the complainant did not suffer any losses due to her quick-thinking, the same could not be said for other victims.

“There are many scammers out there preying on gullible people. It used to be ‘love scams’ where they make you fall in love with them and part with your money but now scammers have a new modus operandi.

“It appears here that the scammers would collect deposit money from victims without them even seeing the room,” he said.

Source: TheStar.com.my

After numerous delays, Tambun Indah Land Bhd (Tambun Indah) finally received its Advertising Permit and Developer Licence (APDL) last week from the urban wellbeing, housing and local government ministry to launch its new projects.

Recall, due to the long-awaited process to obtain the APDL, Tambun Indah had not been able to roll out any new projects this year, except for Raintree Park 1, launched in January.

This has negatively affected the company’s property sales this year, with nine-month sales achieving only RM193 million, versus full-year RM429 million in 2014.

As the delay has dampened new sales this year, we expect it to grow significantly stronger next year to around RM350 million to RM400 million.

Both projects, Avenue Garden and Raintree Park 2, have a combined gross development value of RM300 million, and we gather that the average booking rate has already hit 50% to 60%.

We are confident that these projects can sell well, as the recently opened GEMS International School provides good visibility on the growth prospects of the township, and some commercial shops would also be handed over soon.

We reiterate that, unlike elsewhere in Malaysia, where demand for properties is sluggish coupled with moderate oversupply issue,Penang mainland market remains healthy.

We continue to like Tambun Indah as it is a good proxy for Penang mainland growth story. — RHB Research

Source: TheEdgeProperty.com.my

The state has no problems making public the concessionaire and land reclamation agreements, said Chief Minister Lim Guan Eng.

“A state executive council meeting will be held on Wednesday to declassify the agreements which were made by the previous state government.

“The reclaimed land will be used to fund the RM27bil Penang Transport Master Plan (PTMP). We will choose the contractors and suppliers once the PTMP has been evaluated by the Project Delivery Partner, SRS Consortium Sdn Bhd,” he said.

Lim was speaking at a session attended by about 100 people about the proposed implementation of the PTMP at the council’s town hall here yesterday.

SRS Consortium has proposed that a 1,375ha reclamation project take place in the southern coast of Penang island. The plan is to have the land be used as an asset for the state to raise funds to deliver the PTMP in a timely and sustainable manner.

The two man-made islands, located near Permatang Damar Laut, spanning 930ha and 445ha, will be known as the South Reclamation Scheme.

SRS Consortium also proposed that a modern port be built for fishermen who are expected to be affected by the land reclamation.

Penang Citizens Awareness Chant Group (Chant) adviser Yan Lee questioned if areas such as Youth Park and Botanic Gardens would be affected by the PTMP.

SRS Consortium project director Szeto Wai Loong answered that they would opt to build over these green parks rather than across them.

Meanwhile, at a press conference held at a charity food fair in Jalan Utama, Penang Environment Committee chairman Phee Boon Poh assured the people that the reclamation projects would be done according to rules and regulations that have been set.

“The methodology of the re-clamation have to be monitored and enforced. I will also personally inspect every detail of the Environmental Impact Assess-ment report.

“If this is not properly done, even Putrajaya will not approve it,” he said.

Phee also said the reclamation projects could solve the congestion problem and offset the cost of the PTMP.

“We are not taking up a loan for the PTMP as we do not want to burden future generations. This is why the state is asking the private sector to do it.

“The state is committed to solving the congestion problem by bringing out more green fields,” he said, adding that the plan was to have a second tourist belt on the reclamation areas.

Source: TheStar.com.my