Malaysia | Penang 2013 Blueprint Development | One Penang, Two halves, Three links...what is it for me as investor/developer?

What is Penang state development plan moving forward? Penang state, Consortium Zenith BUCG Sdn. Bhd. and China Railway Construction Corporation International(#CRCC) together with Beijing Urban Construction Group are the prime movers. 

With future development in Penang been catered for rapid growth, any discerning investors and developers that concerned with their investment and development of the Penang state would be keen to know what are in store for them in the near future.

Lately we've KL's developers like #EcoWorld is coming over to Penang to buy lands both in island and mainland. News circulation mentioned that Eco World has acquired 5.26ha in Air Itam, Penang Island; 24.28ha in Seberang Prai, Penang. Another been #Tropicana (previously Dijaya) with their maiden project #Tropicana #218Macalister. On my part I'm working with developers from KL as they're keen to have their maiden projects both here(Penang) and Johor.

Few weeks ago media annoucement of major road projects and undersea tunnel in Penang(refer to attachment). Total estimate value is RM6.3billion to be built in Penang with target completion dates as follow:

(a) Third Tunnel Link: 6.5km of undersea tunnel to be completed by 2025. This third connection is between Gurney Drive(Penang Island) to Bagan Ajam(Butterworth).

(b) Gurney Drive-Tun Dr. Lim Chong Eu Expressway By-pass: 4.2km of expressway and a by-pass to be completed by 2022.

(c) Tun Dr. Lim Chong Eu Expressway to Bandar Baru Air Itam By-pass: 4.6km expressway and a by-pass to be completed by 2019.

(d) Tanjung Bungah-Teluk Bahang Paired Road: A four-land, 12km road to be completed by 2018. (The news for this came out in March, 2013 that caused price for bungalow land near the project increase from RM110 psf to RM140psf. I made some land transactions there). 

Also been mentioned is that Consortium Zenith BUCG Sdn. Bhd. jointly with China Railway Construction Corporation International(CRCC) together with Beijing Urban Construction Group to undertake feasibility studies and detailed design works(FSDD) for the planned Penang highway and traffic mitigation projects. 

"The FSDD is a critical component of the total project plan to ensure that we meet the requirements," said Consortium Zenith BUCG Sdn. Bhd. chairman Datuk Zarul Ahmad Zulkifli adding that initial phase of the FSDD project will take approximately a year and a half after which upon approval together with environment impact assessment(EIA) approval will then commence the initial phase of tunnel and road works.

There'll be 70/30 split on construction works between CRCC and Beijing Urban Construction Group.

The major infrastructure projects is also to improve connectivity and help to bring about development in Seberang Perai Utara(SPU). This balanced development is to give SPU a link after Seberang Perai Tengah has the 1st Penang Bridge and Seberang Perai Selatan has the 2nd Penang Bridge to achieve "one Penang, two halves, three links". Henceforth, the title of this blog message.

On the funding of this mega project, it'll be funded exclusively by local and international banks. In terms of funding concessions, the state government will award 110 acres of net leand in its permitted land bank on Eastern & Oriental Bhd's Sri Tanjung Pinang 2 and a 30-year toll concession to operate the tunnel with the same rate as that of the Penang 2nd Bridge.

This article has been written by VULCAN INT'L Real Estate Research Institute http://www.vulcanresearch.blogspot.com for VULCAN INTERNATIONAL Real Estate Investors Club http://www.vulcaninternational.blogspot.com .

VulcanInternational could be contacted at +6 016 451 1321 .

You're welcome to write your constructive comment below.

Property Development Company In Malaysia | Australia Property Market | SP Setia: WTF(What The Facts) about 50/50 contribution?

Quote: "The vision must be followed by the venture. It's not enough to stare up the steps, we must step up the stairs"...Vance Havner. The quote has been chosen as it's appropriate for this blog post.

By now #SPSetia has been fully grown to be "A-list" developer in Malaysia. It has been said that the company under its current CEO Tan Sri Liew Kee Sin has managed to position S P Setia at its pedestal. As a matured company pushing for its revenue to 50% contribution from local(Malaysia) and 50% from elsewhere is indeed a prudent and wise strategy as the saying "never put all your eggs into one basket." In the event Malaysia's market softening as with the hike of #RPGT(Real Property Gain Tax) the company still can cling on its revenue elsewhere to be in healthly balance sheet. He envisioned the 50/50 contribution five years ago.

It's known that SP Setia has its development in elsewhere in countries like Australia, Singapore, Vietnam and London(on massive #Battersea Power Station project joint-ventured with EPF and Sime Darby). Australia, Singapore and London are developed economies whilst Vietnam and Malaysia are developing economies.

In Australia, they've previously launched Fulton LN (http://vulcaninternational.blogspot.com/2011/06/current-australia-property-market.html) and now Parque(557 St Kilda Road) both in Melbourne. The units at Parque are with build up of 1,500 sq ft to 1,700 sq ft. It's a 332-apartment development. SP Setia is said to sold 331units within few months after the project was launched. 40% of the units sales came from Malaysia while the rest 60% was sold in Melbourne. To put icing on the cake, they hired renowned architect in Australia, Karl Fender to design Fulton Lane and Parque. This is to added value. Having top architects design SP Setia's projects are becoming a theme as it fits into the concept Liew is championing, which is having 5-start consultants to go along with a 5-star service and 5-star quality for its projects. Construction for Parque is expected to begin in early 2014 and end in 2016.

Having such good response, they're said to be looking for buy land in major cities in Australia such as Sydney, Perth and Brisbane.

To quote CEO Tan Sri Liew Kee Sin,"We definitely want to continue investing in Melbourne and London. These two markets are very good markets."

This article has been written by VULCAN INT'L Real Estate Research Institute http://www.vulcanresearch.blogspot.com for VULCAN INTERNATIONAL Real Estate Investors Club http://www.vulcaninternational.blogspot.com .

VulcanInternational could be contacted at +6 016 451 1321 .

You're welcome to write your constructive comment below.

Praque, 557 St Kilda Road

Penang Landed Property Investment | Mudah | Building For Sale In Penang

Malaysia | Penang | One of few pieces of land which encompassed more than half an acre of land off Green Lane Road (Jalan Mesjid Negeri), Penang is currently available for sale. With vicinity such as 24-hour Green Lane's #McDonald Fast Food Restaurant, Penang Free School, Heng Ee Secondary School, Convent Green Lane and situated at tranquility neigbourhood this place does indeed command good value for investment.

The current state of the land (see Fact Sheet below) has a three storey building erected at site.   

Fact Sheet:

Type Of Land: Freehold

Total Build Up Area: 14,337 sq ft

Land Area: 26,318 sq ft (0.6 acre)

Low Density: Per floor consists of 3 units. Total unit is 9 (three storey)

Floor Layout: Each unit has three rooms and three bathrooms

Carpark: 20 parking lots

Note: The sale is 'as is where is basis'

Copy of Proposal For Sale report is made available (compliment from VULCAN INT'L Real Estate Research Institute(Penang iProperty)) for interested prospect(s).  

Those interested in the property please contact Vulcan Lau, mobile: +6 016 451 1321 to arrange for viewing.