Engine of growth: Murly (middle) explaining a model of the Verve, a gated commercial district within Aspen Vision City, Batu Kawan, in south Seberang Prai, to (from left) Ong and Tan. On the right is Northern.

Earthworks began last month on the much-anticipated multi-billion ringgit Aspen Vision City township in Bandar Cassia, Batu Kawan.

Aspen Group chief executive officer Datuk M. Murly said the company had obtained approval to start infrastructure work.

He said construction on its first project, the Verve, was expected to begin by the end of the year.

He added that the Verve, a gated commercial district of 441 shop-offices, was 85% booked.

“We received overwhelming response after our preview in February,” he said in his speech at a signing ceremony at E&O Hotel Penang.

The Verve, which is part of the 99ha Aspen Vision City, is a joint venture between Aspen Group and Ikano Pte Ltd.

Furniture super store IKEA and an integrated shopping centre by Ikano will be within this project, scheduled for completion in 2025.

Ikano managing director Christian Rojkjaer said IKEA and the shopping centre were due to open in 2018 and 2020 respectively.

“We are excited about opportunities in Batu Kawan as a new satellite city,” he said.

Chief Minister Lim Guan Eng said the project was meticulously designed for sustainability.

He said there would also be condominiums, retail and serviced suites, hotels, a financial hub, a medical centre and an international school.

The event also saw the signing of a loan deal for RM196mil between Aspen Vision City and OCBC Bank to finance the Verve.

It includes a term loan for the land buy and a bridging loan for construction.

Murly and Rojkjaer signed the agreement with OCBC Bank (M) Bhd chief executive officer Ong Eng Bin and senior vice-president and head of corporate and commercial banking Jeffrey Teoh Nee Teik.

Also witnessing the ceremony was Aspen Group executive director and chairman Datuk Seri Nazir Ariff.

Source: TheStar.com.my

Penang-based property developer Tambun Indah Land Bhd (TILB) is acquiring 19.05 acres in Kota Permai, Bukit Mertajam, for RM39.42 million and increased its land bank to 472 acres which would sustain the Group for approximately six to seven years.

In a stetement today, TILB managing director Ir. Teh Kiak Seng commented that the land acquisition in Kota Permai was timely as the mainland Penang property market held tremendous potential for growth in tandem with the increasing number of infrastructure initiatives and key manufacturing and services sector investments.

At its annual general meeting today, TILB shareholders approved the final single tier dividend of 6.7 sen per share in respect of the financial year ended 31 December 2014 (FY2014).

Combined with the earlier-paid interim dividends of 3.0 sen per share, Tambun Indah has declared total dividends of 9.7 sen per share for FY2014.

Total dividend payout of RM40.6 million represents 40% of the Group’s FY2014 net profit.

The company is also focusing efforts on developing recreational aspects of their flagship Pearl City township in Seberang Perai South with GEMS International School is on track to be operational in September 2015 and Pearl City Mall by the first half of 2016.

High rise service apartments Avenue Garden located next to the school’s campus are slated to be launched in the second half of 2015.

Source: TheEdgeMarkets.com

Tamarind project: Lau showing the scale model of the RM900mil Tamarind project at E&O’s showroom in Seri Tanjung Pinang

Eastern & Oriental Bhd (E&O) will release for registration the second tower of its RM900mil Tamarind project this weekend at its show gallery in Seri Tanjung Pinang, Tanjung Tokong.

E&O marketing and sales general manager (Penang) Christina Lau said the first tower block had registered a 90% take-up rate since its soft launch in February, prompting E&O to open the second block for registration on June 20 and 21.

The Tamarind project will also be officially launched this weekend.

“More than 400 people have registered with us to take up the first block,” said Lau.

“The successful sale of the first block is due to the distinctive E&O brand and the Tamarind’s attractive pricing.

“Selling from RM600,000 per three-bedroom unit of 1,047 sq ft, the Tamarind is definitely a good entry price for young professionals or new homeowners to own an aspirational property by E&O.

“The Tamarind showcases unique facilities to cater to the lifestyle of its residents including a private one-acre waterscape of beach and free-form swimming and wading pools for the family to enjoy,” added Lau.

She said the Tamarind was one of the most sought after address in Penang as it had easy access in Seri Tanjung Pinang to the Straits Quay retail marina, Tesco hypermarket, Straits Quay Convention Centre, Straits Green Public Park, Penang Performing Arts Centre and the 1.6 km seafront promenade.

Located on 6.9 acres, the Tamarind features two blocks of 33 storeys, comprising 1,104 units with three-bedrooms and two bathrooms.

Lau said E&O had also partnered a renowned home furnishing specialist to collaborate on the interior design of its show unit.

“Ikea provides all the furnishings of the show unit. This is the first time a Malaysian developer has worked with IKEA to set up the show units for a project,” she said.

Source: TheStar.com.my

In Penang, there is a common perception that foreign property buyers and investors are the culprits behind escalating property prices. But is this generally true?

Figure below shows the ratio of foreign residential homebuyer in Penang for the year of 2010, 2011 and 2012 (latest available data). Clearly, more than 90% of the home buyers are locals.

Someone has pointed out that MM2H program is also one of the major factors contributing to rising housing prices in Penang. But if we take a closer look, only 226 residential units were sold to MM2H owners in 2014. That is less than 2% of the total property transactions in Penang for the year of 2014.

So, do you think this is significant enough to drive Penang’s propery market?

– Ken Lim
(Founder and Principal Reviewer, PenangPropertyTalk.com)

The Penang government may revise present guidelines for foreigners buying property in the state in view of the declining value of the ringgit.

State Housing, Town and Country Planning Committee chairman Jagdeep Singh Deo said he would meet with stakeholders next week to discuss the guidelines which restrict foreigners from buying landed homes of not more than RM2mil on the island and RM1mil on the mainland.

“We’re concerned about the spiralling property prices which have been compounded by foreigners snapping up homes due to a weaker ringgit,” he said after closing the Property and Investment Expo at Sunway Carnival Convention Centre in Seberang Jaya yesterday.

Jagdeep said there had been a steady increase of foreigners buying property in Penang since 2012.

“If the value of ringgit declines further, the property market will get extremely hot,” he said.

“While we believe in the free market and encourage foreigners to buy property here, it must not be at the expense of the locals who will not be able to buy property in their home state if the prices continue to increase,” he added.

Jagdeep said the rise in property prices affected mainly the high-end units as the government was controlling the prices of the low-cost and low medium-cost units to enable the locals to buy them.

Source: TheStar.com.my