E&O plans Klang Valley township

NEW GROWTH ENGINE: Penang-based developer in talks with Sime Darby to buy land in Sungai Buloh

Eastern & Oriental Bhd (E&O) is looking at a vital new growth engine by building its first township in the Klang Valley.The Penang-based developer is in talks with its major shareholder, Sime Darby Bhd, to buy 55ha of land in Sungai Buloh, Selangor.

The latter owns 32 per cent of E&O. The plot is part of the larger 341ha under Sime Darby’s Elmina West estate off the Guthrie Corridor Expressway.

Both parties yesterday sealed a memorandum of agreement to facilitate discussions and valuation on the land acquisition.

A firm sale and purchase agreement is expected by March next year, E&O told Bursa Malaysia yesterday.

The company has been busier in Penang with key projects such as Seri Tanjung Pinang, although it also owns tracts of land with smallscale projects in the Klang Valley.

It is also developing 85ha of land at Medini Central in Iskandar Malaysia, with an estimated gross development value of RM3.5 billion.

E&O is reportedly targeting to launch RM1.5 billion to RM2 billion of property projects a year from financial year ending March 31 2014 to 2016.

This will be increased to RM3 billion to RM4 billion worth of launches to achieve sustainable net profits of RM270 million to RM300 million from 2017 onwards.

If it materialises, the freehold Sungai Buloh land will be its maiden township project in the Klang Valley, the company said.

The project will be based entirely on a wellness theme, comprising both commercial real estate and lifestyle residential development.

“The development will offer E&O ample opportunity to deliver unique wellness products that meet the aspirational lifestyle needs of an increasingly discerning market,” it said.

Business times, 26/9/2013

Mah Sing to develop RM5bil freehold township in Pasir Gudang, Johor over next seven years

PETALING JAYA: Mah Sing Group has acquired about 547ha of freehold land in Pasir Gudang, Johor, and will develop it into a mega township over the next seven years.

The land was purchased for about RM430mil and the money will be paid over four years.

Mah Sing group managing director and group chief executive Tan Sri Leong Hoy Kum said the project, with a gross development value of RM5bil, would be the group’s biggest township so far and its fifth in Johor since 2000.

The developer intends to tap on spillover demand from its existing township nearby, Sierra Perdana. “The reasonable entry cost of RM7.30 per sq ft for the new land, coupled with the deferred payment term of 48 months, tie in very well with Mah Sing’s strategy. Over a period of seven years, we will create a very nice, master-planned township, which will change the landscape of the locality for the better. “Besides tapping the spillover demand from our existing township of Sierra Perdana, there is a ready catchment of 100,000 people in Pasir Gudang alone,” he said in a statement.

The land is situated 5km from the Pasir Gudang town centre, 9km from Masai town, 28km from the Customs, Immigration and Quarantine complex via the Eastern Dispersal Link and Coastal highway, 40km from Johor Baru city centre and 50km from the Senai International Airport.

It is located between Pasir Gudang and and Tanjung Langsat, two of the largest industrial basins in Johor, which are key components in the Flagship D: Eastern Gate of Iskandar Malaysia.

“It is only 80km from Penggerang which, together with Tanjung Langsat and Tanjung Bin, is the focal point of Iskandar Malaysia’s much touted oil and gas hub in Asia-Pacific. This will provide a latent demand for housing.

“The Johor Public Works Ministry has also conducted a feasibility study for a third bridge linking Johor Baru and Singapore, with Pengerang identified as the potential site for the bridge in Johor,” Leong said.

He added that besides residential and commercial components, Mah Sing would explore retail, recreational and industrial elements for the township after a more thorough market survey and consumer needs analysis.

“We will integrate security features, soft and hard landscaping, clubhouse and various facilities and amenities in the township,” he said.

He added that Mah Sing’s expertise in township planning in the Klang Valley would come in handy.

“We are confident that we can replicate the success of our previous townships with this new land,” Leong said.(The star Oct 2, 2013)

 

New quit rent rates on Jan 1, 2014

Kuala Lumpur City Hall (DBKL) is in the midst of reviewing the quit rent rates for properties in the city and the new rates are expected to take effect on Jan 1, 2014.

Mayor Datuk Seri Ahmad Phesal Talib said DBKL had received the mandate from Federal Territories Minister Datuk Seri Tengku Adnan Tengku Mansor to re-evaluate the rates.

He said the property value was going up and it was up to DBKL to decide on the rates, which would be dependent on the outcome of the review conducted by DBKL and the Valuation and Property Services Department (JPPH) under the Finance Ministry.

“The rates have remained the same since 1992.

“However, this does not mean we will increase the rates. I urge everyone to just wait for the outcome of the review,” he added.

Although evasive on the subject, the mayor said that if the actual property value was very high as compared to the present rates, it would not mean the tax would be in tandem with the increase but more likely only a slight jump.

“Whatever rates we will eventually adopt must be appropriate so that it does not burden the public, but the new rates must also be fair to DBKL because of the demands on us to spend on various projects and programmes,” he said, giving assurance that the new rates would be practical and realistic.

It is estimated that the outcome of the rates review will affect over 500,000 property owners in the city. Quit rent is the highest income contributor to DBKL.

However, as the local government is striving to put Kuala Lumpur among the top 20 most-developed city in the world by 2020, DBKL has been investing and spending an ever-increasing amount of money annually to achieve that target.

DBKL is hoping an increase in quit rent will provide the extra revenue to pump into more projects to enhance services and infrastructure for the benefit of Kuala Lumpur folk.

Ahmad Phesal was speaking at the 2014 DBKL Budget dialogue attended by more than 600 people from various NGOs, associations, agencies and residents association.

After chairing the five-hour dialogue session held at DBKL’s Training Institute in Bandar Tun Razak yesterday, he said the dialogue was very productive and DBKL would look into every input, remark and criticism to further improve its services.

“Most of the complaints seemed to be geared towards improving the living conditions in the city.

“We hope to allocate more funds in the 2014 DBKL budget for social programmes,” he added

(The star Oct 2, 2013)