Johor Premium Outlet

The Penang Development Corp (PDC) has signed a purchase and development agreement for the construction of a premium retail outlet in Bandar Cassia, Batu Kawan.

The agreement, signed between PDC and developer PE Land Sdn Bhd, will see the nation’s second premium outlet after the Johor Premium Outlet.

Commercial real estate services firm CB Richard Ellis (M) Sdn Bhd (CBRE) will act as the principal consultant.

The premium outlet, costing about RM200mil, will be built on a plot of 16ha land that will also include a 300-room international-class hotel, cafes and food and beverage outlets, a landscaped garden as well as residential units.

It is part of a mixed development in Bandar Cassia branded as the Penang Designer Village with a gross development value of about RM1bil.

Penang Chief Minister Lim Guan Eng said PE Land had won the project in an open tender, and would own, build and operate the facilities while CBRE would act as the principal consultant.

“Payment for the land premium of RM65.34mil would be within three months from today,” he said in Komtar yesterday.

He added that the setting up of the premium outlet was the latest component in the state’s plan to develop Batu Kawan with new attractions towards a quality place to work, live, learn, shop and play.

“We hope that the outlet would help to make residential living in Batu Kawan more attractive for affordable homes built by PDC (12,000 units).

“The state government wishes to dispel negative perceptions that this new satellite township in Batu Kawan was inferior to living on the island,” he said, adding that with catalytic projects like educational institutions, private hospitals and premier industrial companies, the state hoped to establish the satellite township as a quality place to work, live, learn, shop and play.

PE Land chairman Jason Tai said the project was the company’s first investment in Peninsular Malaysia.

The company had been given three years to complete the construction of the premium outlet, but would try to do it in two years’ time, he said, adding that the project was expected to create about 3,000 job opportunities.

PE Land currently operates Sarawak’s premier mall, Kuching’s The Spring Mall.

Source: StarProperty.my

The local property sector may only see a real property gains tax (RPGT) increase in Budget 2014, according to a report by Kenanga Research.

It said it was expecting the tax rate to increase to 30% from 15% for properties sold within two years and 15% from 10% for properties sold within three to four years.

It said the 10% rate would remain unchanged for properties sold in the fifth year and zero RPGT for properties sold in the sixth year onwards.

“We believe this has been largely been discounted and priced-in somewhat, but we do expect some slight knee-jerk reactions for a couple of weeks post announcement,” it said. Budget 2014 will be tabled on Oct 25.

Kenanga Research also said the market could experience “panic buying” by investors next year if the goods and services tax (GST) was implemented in 2015.

“Experience from other countries had seen such trends in anticipation of future cost push inflation on asset prices.

Source: StarProperty.my

Some 70% of residential property transacted in the country today are in the secondary market, while the remaining 30% are newly launched projects.

Raine & Horne Malaysia (Penang) director Michael Geh said more people were going after secondary property because of the pricing which ranged between RM72,000 and RM350,000.

“This market has been very active in the last 12 months and I foresee that it will be very active for the next six months, in terms of sales and rental,” he said at the recent Malaysian Secondary Property Exhibition (MASPEX) Penang 2013 at the Penang Times Square.

“Another reason for its popularity is that the secondary property is already built which means buyers can move in immediately.”

Geh said that in the primary market, many residential units were now being sold at a high price due to market demand and inflation among other factors.

“It is only due to the recent Bank Negara credit curbs that the rise in property prices has slowed a bit,” he said.

“These high price tags for new residential projects has made owning a home a distant dream for the middle class.

Three expressways to ease traffic flow in the state will be completed before the 6.5km undersea tunnel is ready.

This was revealed by Chief Minister Lim Guan Eng after the signing of a preliminary agreement for the construction of a few major traffic-related projects yesterday.

Under the state’s comprehensive package of traffic management projects totalling RM6.3bil, the 12km Tanjung Bungah-Teluk Bahang paired road is scheduled to be ready by 2018, followed by the 4.6km bypass connecting the Tun Dr Lim Chong Eu expressway with Bandar Baru Air Itam by 2019, and the 4.2km bypass connecting Gurney Drive to Tun Dr Lim Chong Eu Expressway in 2022.

The tunnel connecting Gurney Drive and Butterworth’s Bagan Ajam will be completed by 2025.

Lim said these projects would not only improve Penang’s economy, but also benefit all Malaysians.

“Apart from the multiple job opportunities, the contractors are committed in awarding contracts to Malaysians, especially Pe­­nangites,” he said after inking the agreement with Consortium Zenith BUCG Sdn Bhd, China Railway Construction Corporation Inter­national (CRCC), and Beijing Urban Con­struction Group.

During the ceremony, Zenith also separately signed two agreements with CRCC related to detailed project design, engineering, materials procurement and construction of the tunnel and the three toll-free expressways.

Lim emphasised that although the agreement has been signed, these projects must comply with the recommendations for construction im­pact mitigation following detailed environmental impact assessments (DEIA).

For this, Penang would appoint an independent company to conduct the DEIA on the four projects.

Meanwhile, Lim added that Barisan Nasional must accept Pakatan Rakyat’s offer to set up a three-person committee to implement reforms that will stop the abuses highlighted in the annual Auditor-General’s Report.

According to him, only a high-powered committee, with the Deputy Prime Minister as chair, as well as the Opposition leader and the Auditor-General, would be able to “put fear into the hearts of those who betray the public trust given to those acting as a custodian of public funds”.

Source: Starproperty.my

Despite facing severe criticisms over four mega projects totalling RM6.3bil, the Penang Government is pushing forward with the signing of an agreement.

Chief Minister Lim Guan Eng said that the agreement would be signed tomorrow with the related companies here.

It is learnt that the Environmental Impact Assessment would be carried out after the agreement is signed.

“The state executive council has approved the agreement for the projects,” he said at a press conference at Komtar yesterday.

The agreement will be signed with Consortium Zenith BUCG Sdn Bhd, which is made up of a joint venture among several companies – Zenith Construction and China Railway Construction Corp Ltd, Beijing Urban Construction Group, Sri Tinggi Sdn Bhd and Juteras Sdn Bhd.

The controversial projects consist of a 6.5km seabed tunnel connecting Gurney Drive to Bagan Ajam, a 12km dual carriageway between Tanjung Bungah and Teluk Bahang, a 4.2km bypass connecting Gurney Drive to Tun Dr Lim Chong Eu Expressway and a 4.6km bypass connecting the same expressway to Bandar Baru Air Itam.

Source: StarProperty.my