Lifestyle property developer Eastern and Oriental Bhd (E&O) has obtained approval to proceed with reclamation works for phase 2 of its Seri Tanjung Pinang (STP2) development here.

In an announcement to Bursa Malaysia yesterday, the company said a letter dated November 25 was received on December 5 from the State Town and Country Planning Department.

“In their capacity as Local Planning Authority, the department has granted planning permission for land reclamation works in accordance with the approved master plan in relation to STP2 to Tanjung Pinang Development Sdn Bhd (TPD),” E & O said.

Its subsidiary TPD had in 1992 won the right to reclaim and develop 396ha in Tanjong Tokong, and has reclaimed some 97ha in Phase 1 (known as STP1), which has seen the emergence of a millionaires’ enclave of residential homes, a commercial block and marina.

The project’s history can be traced back to 1984 when it started off as a joint venture between Permaijana Ribu (M) Sdn Bhd (owned by UEM Bhd, Penang Bumiputera Foundation and Magma Bhd) and Koperasi Gabungan Negeri Pulau Pinang and Penang Development Corporation.

The Penang government, via the PDC, holds a 21.2 per cent in TPD.

The approval, noted E&O is conditional upon, among others, TPD in due course, surrendering 77.3ha of reclaimed land to the state government, which is reportedly for infrastructure development of a new expressway, a new Gurney Drive promenade and a public park.

“Out of this, 44.5ha shall be the net area of land available for development made up of 24.2ha on the man-made island and 20.2ha at Gurney Drive.”

With the approval for the commencement of reclamation works for STP2, TPD is inviting qualified and experienced contractors to take part in a pre-qualification exercise for the reclamation project.

It is open to all Malaysian and/or international contractors as well as joint ventures, who meet all mandatory requirements as stated in the Notice of Pre-Qualification published in the national dailies.

The company said the main scope of works include land reclamation, soil improvement, dredging, coastal protection, marine piling and other associated marine works.

The closing date for the submission of the completed pre-qualification document is December 24 at 12 noon.

“At STP1, we have fully complied with our contractual obligations by surrendering a total of 10.9 ha as state government reserve and land for public uses, as well as 8ha for the Penang Outer Ring Road alignment.

“At STP2, over and above the contractual obligation to surrender 24.2ha on the reclaimed island, E&O has agreed to reclaim at its own cost and surrender a further 53ha along Gurney Drive, bringing the total of 77.2ha to be surrendered to the state government as E&O’s contribution to infrastructure development,” E&O said in a statement.

Source: New Straits Times Online

The Penang state government has acknowledged the importance of the Sultan Abdul Halim Muadzam Shah Bridge as more firms on the island express interest in expanding their operations to the mainland.

Chief Minister Lim Guan Eng said more high-tech manufacturing firms from the United States (US) and the European Union have announced expansion initiatives amid the opening of the Second Penang Bridge linking the island and Batu Kawan.

“Those already operating in Batu Kawan include Bose Systems, Haemonetics, Magneti Marelli Automotive Lighting (MAL), SanDisk, Seagate and VAT (Swiss semiconductor firm),” he said at the Invest Penang Supplier Day themed “Grow Your Business With International Partnership” here today.

The 24km bridge, a federal government project, was built at a cost of RM4.5 billion to ease the heavy volume of traffic on the first bridge, and has proven to be a key catalyst in developing the Batu Kawan industrial area.

Lim said multinational corporations (MNCs) have been a strong contributor to Penang’s economic growth dating back to 1972, adding the US and Germany were Penang’s second and third largest foreign investors in 2013 with total investments of US$155 million (RM507 million) and US$69 million (RM228 million) respectively.

“In aggregate, 40 per cent of Penang’s foreign direct investment came from the US and Germany, mainly in the electrical and electronics (E&E) sector,” he added.

Lim said E&E products have been Malaysia’s main traded items and have elevated the country to becoming a major link in the global E&E value chain.

He said from January to September this year, Malaysia exported US$58 billion worth of E&E products globally, posting a nine per cent increase over the previous year.

“Penang contributes 25 per cent of Malaysia’s total exports or 50 per cent of Malaysia’s E&E products exported overseas,” he added.

The Supplier Day event, attended by over 40 foreign and local sourcing companies and 250 supplier companies focusing on the E&E industry, aimed to promote the E&E ecosystem, enhance localisation as well as showcase joint-venture opportunities in Penang especially in the E&E supply chain.

Source: Bernama

ParkVille @ Balik Pulau, a low-density gated and guarded development by Emerald Capital Group in Balik Pulau, Penang. This development comprises 67 units of 3-storey terrace & bungalow, semi-detached villa and condo villa. It is only mere minutes drive from Balik Pulau town center. Most units are north & south facing, with 12 ft floor height and 8 ft door height and optional private home lift.

More details to be available upon project launch.

Property Project : ParkVille
Location : Balik Pulau, Penang
Property Type : 3-storey terrace, semi-d, bungalow and condo
Tenure : Freehold
Total Units : 67
Developer : Emerald Capital Group

Location Map:

Property prices in Seberang Perai are still within an affordable range of between RM250,000 and RM500,000 for double-storey terrace homes.

Over a million residents here will be affected if the goods and services tax (GST) is imposed on management fees for apartments and condominiums, said Penang Chief Minister Lim Guan Eng.

He said all management and maintenance fees for buildings with strata titles, including low- and low-medium cost flats, will rise by 6 per cent if the consumption tax is imposed.

Lim said there are a total 235,932 stratified units in Penang and at five people per household, this translates to more than one million people living in these units.

“This works up to almost 60 per cent of the population of Penang will be affected by this,” he said in a press conference at his office today.

He reminded Putrajaya that most people buy flats, especially low- and low-medium cost units, because they could not afford landed properties.

Lim said the group will be further penalised over those living on landed properties who need not pay such fees.

“The government should exempt GST on management fees of stratified developments,” he said, saying his administration will appeal to Putrajaya for the exemption.

Penang Real Estate and Housing Developers’ Association (Rehda) chairman Datuk Jerry Chan said the maintenance and management fees collected by management corporations of stratified properties were meant to pay for upkeep of the properties and not for profit.

He also noted that such joint-management bodies already faced difficulty in collections and arrears.

“This will only put a heavier strain on the management funds that are used mainly for maintenance of common property,” Chan said.

Late last month, several real estate related non-governmental organisations (NGOS), submitted a petition to the prime minister for management corporations of stratified developments to be exempted from GST.

Deputy Finance Minister Datuk Chua Tee Yong on Wednesday said the federal government is considering the requests.

Source: The Sun Daily

The Penang transport Master Plan is set to improve accessibility and spur further gains in the state’s vibrant property market, according to AmResearch.

Major construction and property players with projects in Penang are set to be major beneficiaries of the state government’s RM27bil transport masterplan.

The Penang Transport Master Plan (PTMP) is set to improve accessibility and spur further gains in its vibrant property market, said AmResearch in a report yesterday, adding that the Government’s various initiatives would create significant infrastructure opportunities for Malaysian contractors.

“Indeed, the spotlight will turn to the balance RM20bil of major infrastructure works being lined up within Penang over the next 25 years.”

The research house pointed out that the first component – the RM6.3bil Penang undersea tunnel project – was awarded to the Zenith-BUCG Consortium last October, with feasibility studies and detailed design works to be completed by end-2015.

“The state government’s preferred approach is to appoint a project delivery partner (PDP) to co-ordinate the entire project. The request for proposals have attracted about 50 suitors to-date and will close next February.

“This will be quickly followed by the contract award in six months’ time (by the third quarter of 2015), as physical work on the PTMP is scheduled to start by 2016.”

Given the huge financial and technical requirements, AmResearch is of the view that the bidders will likely form consortiums to strengthen their chances, which include tie-ups with international contractors of repute.

“Among the pack, we believe Gamuda Bhd has the upper hand over its rivals.”

The research house said Gamuda already possessed the necessary track record in handling mass rapid transit (MRT) jobs.

“It is the PDP and tunnelling contractor for the Klang Valley MRT Line 1, and was recently appointed as the PDP for the MRT Line 2 as well.”

AmResearch added that Gamuda had the balance sheet strength and relevant expertise in handling tunnelling works, such as the Klang Valley MRT 1, Kaohsiung MRT and SMART Tunnel.

Malaysian Resources Corp Bhd, the research house said, was another beneficiary. “Its proposed Penang Sentral development (approved by the state government in September) is set to be the main transport hub for Penang and the northern region of Peninsular Malaysia.

“Phase 1, with a gross development value (GDV) of RM512mil, consists of a transport hub, terminal and retail mall.

“While not directly under the PTMP, Penang Sentral certainly complements the state government’s transport improvement agenda. This suggests more upside to the entire project’s initial GDV estimate of RM2bil.”

The imminent roll-out of the masterplan is also a timely boost for IJM Land Bhd’s “The Lights” in Jelutong, as it moves to launch the commercial components under Phase 2, which has a GDV of over RM6bil, said AmResearch.

While the opening of the Second Penang Bridge in March is expected to bode well for the remaining phases of Mah Sing Group Bhd’s Southbay City, which has a GDV of around RM2.7bil.

Source: StarProperty.my