A condominium with a panoramic view is the latest property offering in Bukit Dumbar in Penang.

The exclusive project — Quattro 360 by Marvellous Land Sdn Bhd — features a total of 38 units with only two units per floor.

Each unit has a built-up space of 1,900sq ft, and comes with four bedrooms, two of which are master bedrooms.

The condo units also come with private lifts and lobbies as well as a double security system.

Marvellous Land director Yeow Jing Hooi said the project was expected to be open for sales by mid-June.

“So far, the response has been good as we have received about 1,000 enquiries already,” said Yeow, adding that the project was now open for registration.

For enquiries, call 04-6605555 or visit its sales office at 8, Jalan Mas, Penang (behind Caltexin Green Lane).

By The Star

If there's is a transaction involving a mall in 2012, expect the deal to be done at a handsome price.

After a record number of deals valued at RM5 billion involving shopping complexes in 2011, this retail asset will continue to
be on the radar of funds and real estate investment trusts (REITs) in 2012.

Allan Soo, managing director of CB Richard Ellis Malaysia, said that since there are not many quality malls to go around, buyers will look at alternative methods of growing their asset portfolio.

“Funds or companies may develop a shopping complex on their own or enter into a joint venture. They could also buy assets that are close to completion,” Soo told Business Times.

If in 2011 we witnessed virtually all major mall deals taking place in Peninsular Malaysia, Soo expects 2012 to see deals also being done for mall assets in Sabah and Sarawak.

And if a mall is available for purchase, Soo said: “It continues to be a seller’s market this year.”

Meanwhile, vice president of Royal Institution of Surveyors Malaysia (Property Management, Estate Agency and Valuation Division) Adzman Shah Mohd Ariffin agrees that 2012 is
a seller’s market.

High prices are also a result of higher land value and costlier construction costs, he added. “Prices are already higher naturally due to higher land values and cost of construction.
Given lower passing rental levels, especially for malls opened in the past two to three years, the yields are likely to be low.

“Even the recent deals in Klang Valley showed yields of about 5.5 per cent to 6.5 per cent only, which is already much lower than most investors’ target of 7 per cent,” Adzman said.

However, he said that malls are dynamic and capable of generating better income if operated well with strong corporate governance and good retail mix. This makes it a good resilient investment in weathering global economic uncertainties.

According to Adzman, it could cost more to build a mall from scratch. As such, it would make better sense to purchase existing malls which are in good condition, location, population
catchment and potential for enhancement and repositioning.

"Purchasers must look beyond the yield at the time of purchase and be prepared to work on the assets for capital appreciation and bettering the income stream in the long term," he said.

Adzman, meanwhile, reckons that purchasers will be from private funds to focus on assets to "warehouse" rather than REITs, which would look for yield-accretive assets.

"Warehouse" is when an asset is held for a period of time in order to nurture it until it produces a better income stream.

After about a dozen deals in 2011, could there be another record set this year?

It is expected to be vibrant but not a repeat of 2011, but deals this year may very well thump last year's in terms of value.

Already, there have been indication that KrisAssets Holdings Bhd, which owns the Mid Valley Mega Mall and The Gardens, will spin off the asset into a REIT. These assets alone are valued at RM3 billion.

We have also yet to hear the outcome of the Bandar Raya Development Bhd (BRDB)'s plan to call for a tender for the sale of the Bangsar Shopping Centre and CapSquare Retail Centre in Kuala Lumpur, and Permas Jusco Mall in Johor. These three malls may be valued at another RM800 million.

By Business Times

Aerial view: The temporary bus terminal is located near the Sultan Abdul Halim ferry terminal in Butterworth. The green patch on the left was previously occupied by the former bus terminal and has been earmarked for the Penang Sentral project.

The Federal Government should consider calling a fresh tender for the RM2.7bil Penang Sentral transportation hub project, a consumer group said.

Penang Consumer Protection Association president K. Koris said this should be done as it has been more than four years since the project’s groundbreaking ceremony which was performed by former Prime Minister Tun Abdullah Ahmad Badawi in 2007.

He said if the appointed contractor was incapable of handling the mega project, then the Government should re-tender it in an open tender.

He said the Government had announced that the project, which would be similar to KL Sentral, would serve as an integrated traffic dispersal system for the northern region.

“Sadly, work on the project has yet to start except for the construction of a RM10mil temporary bus terminal and hawker centre nearby back in 2008,” Koris said in an interview.

He claimed that the situation at the temporary terminal was often chaotic and that the narrow one-way stretch on Jalan Pantai leading to the terminal was choked with traffic daily.

“The contractor should have constructed a proper lane with roofing to enable cars to drop off and pick up commuters at the temporary site.

“Now, motorists have to jostle with express buses and local stage buses as well as with petrol tankers, that frequent the nearby petrol plants, to drop off commuters,” Koris said.

Bagan Barisan Nasional co-ordinator David Chua said the project was vital to give Seberang Prai a major boost in terms of economic development.

“Rapid Penang has also committed to increase its fleet of buses in Seberang Prai by December but, with limited space at the temporary terminal, it may not be possible for fear of worsening the traffic congestion there,” he said.

Chua also said the project contractor must give due attention to the safety of commuters, including the disabled, by providing necessary amenities for them at the bus terminal.

Penange Public Works, Utilities and Transport Committee chairman Lim Hock Seng said the contractor had yet to submit the project’s planning permission application to the Seberang Prai Municipal Council.

“It has been over a year since the state helped the Transport Ministry acquire a parcel of state land to be merged with other parcels of land belonging to the Penang Port Commission, Malaysian Highway Authority and Rail Authority Commission to make way for the project.

“We will help ensure that the council expedite the project’s planning permission and building plans once we receive the necessary applications,” Lim said.

Last November, Northern Corridor Implementation Authority chief executive officer Datuk Redza Rafiq had said that the project, which has a gross development value of RM3.1bil, would be built in three phases and scheduled for completion by 2020.

He said the transportation hub would be able to accommodate up to 180,000 passengers a day.

The project, developed by Malaysian Resources Corporation Berhad (MRCB) in partnership with Pelaburan Hartanah Bumiputera Berhad over 12.8ha, is part of the Northern Corridor Economic Region initiative. Both companies formed a joint venture company called Penang Sentral Sdn Bhd which will undertake the development of the transport and commercial hub.

MRCB Selborn Corporation Sdn Bhd, a subsidiary of MRCB, has been appointed to manage the development, design, construction, completion and maintenance of Penang Sentral.

By The Star

OVERSEAS ASSETS: Properties earmarked for sale are in Sri Lanka, Seychelles, Singapore and Vietnam, which could fetch US$170m, says source

TYCOON Tan Sri Vincent Tan Chee Yioun’s Berjaya Land Bhd (BLand) is looking to divest a majority of its existing hotel properties abroad, sources say.

The hotel assets in Sri Lanka, Seychelles, Singapore and Vietnam, if sold, could fetch some US$170 million (RM517 million) in value, a source told Business Times.

It is believed that an agent may have been appointed as potential purchasers have been approached for the sale of a couple of the company’s hotel assets.

Berjaya, when contacted to confirm if some of its hotels abroad were up for sale and if it had hired an agent to execute the sale, said: “We are not aware of any sale of our properties at this juncture and there are no further comments on this issue”.

The asking price for Berjaya Hotels Singapore is around S$40 million (RM97 million) and the Intercontinental Hanoi Westlake in Vietnam was offered for an estimated US$80 million (RM243 million).

Other resorts identified for sale include two hotels in Seychelles (Berjaya Praslin Resort andBerjaya Beau Vallon Bay Resort and Casino) and one in Sri Lanka (Berjaya Hotel Colombo).

While it is unclear if the Sheraton Hanoi Hotel will be sold, a source said that the group is not looking to sell Berjaya Eden Park London in the UK.

BLand, in its annual report for the period ended April 30 2011, said performance of its overseas properties was mixed, registering gross revenue of RM64.2 million, representing a 4.7
per cent drop from RM67.4 million recorded in the previous year.

Room occupancy, however, had improved to 67 per cent from 64 per cent but the average room rate dropped by 9.8 per cent from a year ago.

In Seychelles, Berjaya Beau Vallon Bay Resort and Casino and Berjaya Praslin Resort posted marginally lower gross revenue due to stiff competition from a newly-opened resort on the island and lower arrivals, the annual report added.

“The InterContinental Hanoi recorded an occupancy of 61 per cent from 53 per cent in the previous year, but the overall market recovery in Vietnam was slow and competition from new hotels in the city was intense,” it added.

Berjaya, meanwhile, will continue to own the Long Beach Resort in Phu Quoc, Vietnam, and will be building a new hotel including a 280-room hotel in Bien Hoa City Square in Ho Chi Minh City.

By Business Times