Eastern & Oriental Bhd (E&O) has awarded a contract to China Communications Construction Co Ltd (CCCC) to undertake land reclamation works for Seri Tanjung Pinang Phase 2 (STP2) in Penang.

In a filing with Bursa Malaysia, E&O said its subsidiary Tanjung Pinang Development Sdn Bhd had issued a letter of award (LoA) to CCCC (M), a wholly owned Malaysian subsidiary of CCCC, to undertake the land reclamation works.

E&O group managing director Datuk Seri Terry Tham Ka Hon said the group had gone through an extremely rigorous tender process that included the pre-qualification of potential contractors prior to the tender submission.

“We believe that in terms of technical competency, track record, local project experience as well as contract competitiveness, the shortlist of reputable international firms has led us to finalise the award to CCCC (M),” Tham said in the statement.

He added that efforts to secure the financiers for the project were being pursued concurrently and would be finalised soon.

“With the reclamation contractor identified and financing arrangements soon-to-be firmed up, we look forward towards operationalising STP2 and bringing the project to fruition with mobilisation and commencement of works targeted by year-end,” Tham said.

He added that all relevant requirements and authorities’ approvals were already in hand, including the approval of the project’s Detailed environmental impact assessment study by the Federal Department of Environment, the endorsement of the STP2 masterplan and granting of the planning permission for STP2 reclamation works by the Penang state authorities.

CCCC is listed on the Shanghai Stock Exchange and the main board of the Hong Kong Stock Exchange. The group is the largest infrastructure construction and dredging company in China and the world’s largest dredging company in terms of both total capacity of trailing suction hopper dredgers and total cutter section dredgers, the key machinery in the reclamation dredging process.

The LoA comprises two parts. The first part involves the acceptance of the tender to reclaim Phase 2A of STP2 (Package 1) for a contract price of approximately RM1.035bil. Phase 2A of STP2 measures 384 acres comprising 253 acres to be reclaimed off Penang’s north-east coast and 131 acres on the Gurney Drive foreshore.

The second part of the LoA covers the conditional award for the proposed reclamation works for Phase 2B and Phase 2C of STP2 (Package 2) to CCCC(M) for a contract sum of RM1.285bil, subject to adjustments for exchange rate and fuel price fluctuations, and changes in cost if applicable.

Phases 2B and 2C measure 507 acres in total.

Source: TheStar.com.my

A string of innovative housing packages to counter the high rate of bank loan rejections will be introduced in Penang soon.

State Housing, Town and Country Planning Committee chairman Jagdeep Singh said details of the packages, which would be introduced in stages, would help to cushion the loan rejections of most housebuyers.

He, however, declined to reveal the package details during a press conference on the upcoming Penang Property Summit 2016 at Jen Hotel in Penang on Monday.

“This is part of the state government’s initiative to help housebuyers acquire property under the affordable housing scheme.

“The recently introduced RM150,000 affordable housing scheme to allow housebuyers to secure bank loans by purchasing property of lower value is part of the package.

“We introduced this scheme as we found that loan rejection for these categories was much lower compared to the RM300,000 or RM400,000 affordable housing,” he added.

Jagdeep said he would be meeting with Bank Negara officials next week to discuss the high rejection rate issue.

Earlier, Penang Property Summit 2016 event director Ong Ban Seang said the three-day summit from Jan 8, to be held at the SPICE Arena in Relau, would feature some 200 participants.

The Penang International Property Expo (PIP) will also be held during the summit with 30 exhibitors promoting their projects.

He said the event, which is into its second year, would feature a ‘premier lecture series’ by state executive councillor Chow Kon Yeow, Penang Island City Council mayor Datuk Patahiyah Ismail and Seberang Prai Municipal Council president Datuk Maimunah Mohd Sharif.

“The lecture series will also have Penang Institute chief executive Dr Lim Kim Hwa and Penang Invest director Datuk Lee Kah Choon providing insights into Penang’s strategic plan to be a ‘high income’ state.

“The lectures will be attended by 100 guests comprising corporate leaders, senior government officials and trade associations’ executive committee members,” he said.

The property summit is organised by International Real Estate Federation (Fiabci) Penang Chapter in collaboration with the state housing committee and PenEvents.

Source: TheStar.com.my

A proposed high-rise commercial development by Praicon Corporation Sdn. Bhd. in Butterworth, Penang. Strategically located along Jalan Chain Ferry, walking distance to Econsave Hypermarket, just a short drive to Harbour Place integrated development by PJD Group.

This development will consist of a 27-storey commercial building with 154 units of service suites.

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

Property Project : (pending for approval)
Location : Butterworth, Penang
Property Type : Serviced apartment
Total Units: 154
Indicative Price: (to be confirmed)
Developer : Praicon Corporation Sdn. Bhd.

A developer has offered four compensation options to residents of 823 squatter units in Sungai Nibong Kecil and Sungai Nibong Tengah, Penang, who have to make way for a mixed development project.

The options given by Hunza Properties Berhad are cash, cluster houses in Bertam and low-cost flats in Bertam and Bayan Lepas.

Hunza Realty Sdn Bhd director Gee Su Lyn said they bought the site concerned, a 73.4ha plot in Bayan Baru, six years ago, adding that owners of 750 squatter units on the land had agreed to one of the four options.

She said 31 squatters were still undecided while 30 squatters were issued with notices for failing to respond. The remaining 12 have been served with court summonses.

Gee said it took the company six months to come up with a sound compensation formula.

“A six-month survey was carried out at the site as we needed detailed information before coming up with a good compensation formula.

“Some of the squatter units were already empty and dilapidated. There were also units rented out to foreigners.

“Our main objective is to provide shelter for those in need,” she said in her speech during a topping-out ceremony at the Bayu Nyaman low-cost flat project in Bayan Lepas yesterday.

The 28-storey project is one of the four compensation packages offered.

It has 690 units measuring about 680sq ft each. The project is scheduled for occupation in February next year.

Gee said those who occupied a squatter unit measuring more than 800sq ft were entitled to a free low-cost flat either in Bertam or Bayan Lepas.

“If the owner prefers to own a landed unit, he or she may opt for a low medium-cost cluster house in Bertam.

“Those who lived in squatter units between 400sq ft and 800sq ft can opt for a low-cost flat either in Bertam or Bayan Lepas.

“This group can also choose a low medium-cost cluster house in Bertam but a small amount of top-up is required,” she said.

Gee said owners of empty squatter units and those who rented out their units would be given cash compensation only.

“We also give out cash compensation to owners of units smaller than 400sq ft.

“However, we will give out a free low-cost unit in Bertam to those who are really hardcore poor,” she said.

At the same ceremony, Hunza Properties Berhad group managing director Khor Siang Gin said the cost of building each low-cost unit in Bayu Nyaman was around RM100,000.

He said the cap price of a low-cost house set by the state government was only RM42,000 per unit.

“To date, we have spent about RM100mil in compensation over the resettlement of these squatters,” he said.

Also present at the topping-out ceremony were Penang Deputy Chief Minister I Datuk Mohd Rashid Hasnon and Hunza Properties Berhad founder Datuk Seri Khor Teng Tong.

Source: TheStar.com.my

First-time buyers of affordable houses not left out too

Various house ownership programmes for all levels of income have been allocated for in Budget 2016.

Prime Minister Datuk Seri Najib Tun Razak said PR1MA would build 175,000 houses, which will be sold at 20% be­low market prices, with an allocation of RM1.6bil.

He said Syarikat Peru­­­mahan Negara Berhad would build 10,000 units of Rumah Mesra Rakyat with a subsidy of RM20,000 for each house through an allocation of RM200mil.

First-time house buyers of affordable houses were also not left out with the establishment of a First House Deposit Financing Scheme under KPKT to pay the deposit.

“For this, RM200mil is alloca­ted,” he said.

Najib also announced that hou­ses for the second generation of settlers comprising 20,000 units would be built by Felda, 2,000 units by Felcra and 2,000 units by Risda.

“For houses built by Felda, the maximum price is reduced to RM70,000 from RM90,000 pre­viously,” he said.

He also said GLCs would build affordable houses in the vicinity of the MRT station in Ban­dar Kwasa Da­­man­sara in Sungai Buloh.

Master Builders Association of Malay­sia president Mat­thew Tee said the construction sector was expected to be the recipient of the highest growth of about 8% next year among other sectors like manufacturing and services.

“A lot of upcoming projects such as houses, schools, clinics and public transportation are included in the Budget,” he said.

Real Estate and Housing Developers’ Association Malaysia president (Rehda) Datuk Seri F. D. Iskandar saw Budget 2016 as positive and helpful for homeownership, especially for the middle income earners.

He said the allocation of RM200mil as deposit for first-time house buyers was good news for the industry especially in this current challenging times.

“Payment for deposit has always been the biggest barrier to house entries and we fervently hope that the deposit will help spur homeownership among the rakyat,” he said.

He said Rehda lauded the Government’s move to provide a special fund to encourage the adoption of the Industrialised Building System (IBS) in Malaysia.

“The RM500mil promotion fund for developers and contractors will not only help to accelerate project delivery but also reduce development cost as well as depen­dency on foreign workers.

“We hope such an incentive will encourage more developers and contractors to adopt IBS in their projects,” he said.

Orando Holdings Sdn Bhd mana­ging director Datuk Dr Eng Wei Chun (pic) said the 20% reduction in stamp duty for Syariah-compliant housing loans would be good for the property sector.

Eng, who has been in the property industry for 20 years, said the RM50mil loan for SMEs could also revive the country’s economy.

“By spending the funds in the market, it will help to stimulate business and our economy to revive,” he added.

Civil servant Izzul Fikry, 45, hopes quality will not be compromised in the houses built under the Perumahan Penjawat Awam 1 Malaysia (PPA1M) projects expected to be completed by 2018.

“It is true that you cannot get houses ranging from RM90,000 to RM300,000 easily but I hope the Government will look into the space and quality of the houses,” he said.

The father of four said they did not want to end up with homes that needed constant maintenance, adding that there should be at least three rooms per unit for growing families.

Another civil servant, Kasmadi Jumaat, 33, was happy with the offer of affordable homes for civil servants.

“I will go for it, even if it’s far from Kuala Lumpur; at least I will have a roof over my head once I retire,” he said.

Engineer Janice Lee, 28, said with the high cost of living, a three-bedroom apartment of RM550,000 would be fine if both husband and wife were working with a household income of RM12,000 and two children.

“We must be close to the Kuala Lumpur city centre and a walking distance from urban conveniences, shopping malls and restaurants.”

Source: TheStar.com.my