Business Times has learnt that CP Land Sdn Bhd, the property arm of the CP Group, has disposed of 40 hectares of land it owns in the Queensbay area at Bayan Lepas to a Penang-based property player.

Sources said the land was sold at RM420 per sq foot (psf) to Asia Green Development Sdn Bhd in May and the transaction is believed to be worth RM160 million.

Asia Green is said to be planning to build serviced apartments on the land, which is currently serving as a parking lot.

The Queensbay development sits on 29.2ha of sea-fronting land on which Penang’s largest shopping centre, Queensbay Mall, and the Eastin Hotel are sited.

The mall was sold by CP Group Sdn Bhd to CapitaMalls Asia last year for RM657 million.

On Monday, property player Ivory Property Group Bhd announced that it had won the rights to buy 41.50ha of land at Bayan Mutiara on the island, which lies south of the Penang Bridge and close to the Queensbay area.

Some 27.34ha are existing land and 14.16ha are to be reclaimed for a proposed mixed development, Ivory told Bursa Malaysia in a statement.

The reserve price of the Bayan Mutiara land is said to be RM200 psf and it is learnt that Ivory’s win-ning bid was RM240 psf, im-plying that total land cost was about RM1 billion.

It is also learnt that Ivory’s payment to the Penang Development Corporation will be staggered over five years and the company intends to embark on its maiden launch of the project next year.

Meanwhile, at a stone’s throw from the proposed Bayan Mutiara development, Boustead Holdings Bhd is believed to be embarking on a reclamation project.

A financial daily last September reported that Boustead will be allowed to reclaim an area “very much less” than 40ha between the existing Penang Bridge and the Penang Second Crossing in Batu Maung as compensation for having had to reduce the height on a 12-storey hotel it is developing at Weld Quay on the island.

Boustead was reported to have submitted a compensation claim of RM60 million to the Penang Island Municipal Council for revoking the initial approval of a 12-storey building in order to comply with heritage status guidelines within the Unesco heritage zone.

Boustead’s initial plan was for a RM140 million development of a four-star hotel with 300 rooms.

Property experts told Business Times that the cost of reclamation per square foot currently stands at RM40 and Boustead is likely to pay RM174.5 million for the reclamation of the 40ha.

It is also learnt that the Penang government will be given 8ha of the 40ha free of charge.

Source: Business Times

KUALA LUMPUR: Having established a foothold in four states in Peninsular Malaysia, mid-sized property developer Hua Yang Bhd is on the lookout for land in Sabah and Penang to cement its position as a nationwide affordable home builder.

Chief financial officer May Chan said Hua Yang was actively looking for large land parcels in Kota Kinabalu, Sabah to build a township but the group was still in the midst of finalising its plans,

“This is our first entry into Sabah and we’ll have to make sure it starts on the right footing,” Chan told reporters after a briefing on Hua Yang’s upcoming launch of the Gardenz serviced apartments – Phase 3 of its OneSouth project.

Despite the higher land prices, Hua Yang is also pursuing pocket-sized land parcels in the urban centres of the Klang Valley and Penang, Chan said. The group currently has ongoing projects in the Klang Valley, Johor and Perak and had previously launched projects in Negri Sembilan.

Chan said Hua Yang has an undeveloped landbank measuring 790 acres, located mainly in Johor and Perak, with an estimated gross development value (GDV) of RM2.4 billion based on initial plans.

She said Hua Yang did not rule out the possibility of moving into the high-end segment, but for now it would be concentrating on affordable housing, to cement its position in that market. “Hua Yang’s focus is on providing affordable properties. We aim to fill the gap left by other developers who are focused on providing high-end products. Our target markets are young graduates and first time homeowners,” Chan said.

Hua Yang’s unbilled sales stand at RM372 million and its ongoing projects have a total GDV of RM857 million which should keep the group busy for the next two years. In the medium term, Chan said Hua Yang is looking to rebalance revenue contributions from each of its three operating regions as almost half its revenue came from its Klang Valley projects over the last two years.

An optimum revenue distribution would see Hua Yang’s Johor and Perak projects each contributing 30% of total revenue, with the Klang Valley projects garnering 40%, Chan said.

Hua Yang is aiming to build up its revenue to about RM800 million in the medium term and Chan believes that this will be largely accounted for by the group’s Klang Valley projects.

OneSouth is Hua Yang’s largest project in the Klang Valley with a GDV of RM840 million. Located near the Mines Resort City in Seri Kembangan, the development comprises a retail mall, serviced apartments, an office tower and small office home office (SOHO) units. For the first quarter ended June 30, 2011 (1QFY12), Hua Yang’s net profit more than doubled to RM11.48 million from RM4.91 million a year ago, while revenue rose 65.92% to RM61.75 million from RM37.22 million. Earnings per share was 10.63 sen while its net assets per share was RM2.15 as at June 30.

Hua Yang attributed the stronger results to better sales, steady construction progress recognition and the completion of its land disposal.

In late March, Hua Yang’s share price surged over 55% in a week, rising from RM1.06 on March 22 to RM1.65 on March 30. The counter has since traded above the RM1.50-mark, hitting an all-time high of RM1.76 on July 14. It closed at RM1.68 yesterday with 65,700 shares transacted.

Chan said Hua Yang was in the midst of planning corporate exercises to improve its liquidity, including a potential private placement.

The group recently proposed a one-for-three bonus issue of 36 million.

SOURCE: The Edge Property

GEORGE TOWN: Ivory Properties Group Berhad will develop the Bayan Mutiara mixed development project tendered out by the Penang Development Corp (PDC).

In a press release, its board of directors announced that the group had received and accepted the letter of acceptance from PDC on July 25.

“We received the letter for the proposal for purchase and development of 102.56 acres of land located in Bayan Mutiara of which 67.56acres are existing land and 35 acres are to be reclaimed for a proposed mixed development.

“The proposed project shall be subjected to the terms and conditions to be mutually agreed upon between the parties in an agreement to be entered into at a later date. Ivory will undertake to make the necessary announcements in due course.

“None of the directors or substantial shareholders of Ivory or persons connected with them has any interest, whether direct or indirect in the proposed project,” the statement said.

It was earlier reported that Ivory and SP Setia Bhd were bidding for the Bayan Mutiara mixed-development project via a request for proposal, which set the reserved price at about RM200 per sq ft.

Ivory won the project as it had submitted a higher bid to develop the site.

In a recent talk at the ninth Star Property Fair 2011, investPenang executive committee chairman Datuk Lee Kah Choon said the Bayan Mutiara mixed-development project would see the building of offices, special medical facilities, commercial blocks, residential enclaves, retail and public spaces.

SOURCE: The Star

GEORGE TOWN: About RM150mil worth of property has been sold or booked at the just-concluded Star Property Fair 2011, reflecting optimism in the property market here.

Star Publications (M) Bhd regional operations manager (north) Chung Chok Yin, who is the organising chairman of the four-day fair, said the number of registrations and buyers had exceeded expectations.

He said he had spoken to many of the exhibitors and they were pleased with the response.

An estimated 30,000 people visited the fair, he added.

Henry Butcher Malaysia (Penang) vice-president Shawn Ong said sales and bookings made with ex­hibitors were estimated at RM150mil.

The fair, which ended yesterday, was organised by The Star in collaboration with Henry Butcher Malaysia (Penang) Sdn Bhd.

Among the 36 exhibitors were IJM Land Bhd, Ivory Properties Group Bhd, Belleview Group, DNP Land Sdn Bhd, Nusmetro Venture (Pg) Sdn Bhd, Sunway Grand Sdn Bhd, Mah Sing Group Bhd, MTT Properties and Development Sdn Bhd, Reka Indah Development (Pg) Sdn Bhd, Ideal Property Sdn Bhd, SP Setia and Boon Siew Group (BSG Property).

Others were Plenitude Heights Sdn Bhd, Triental Land Sdn Bhd, GD Development Sdn Bhd, Lone Pine Group of Companies, ResCom Asia Sdn Bhd, Capitawealth International Sdn Bhd, KPWG International Sdn Bhd, Tambun Indah Development Sdn Bhd, Bukit Kiara Properties Sdn Bhd, E&O Bhd and Jalin Real­- ty.

Henry Butcher also featured projects by Magna Putih Sdn Bhd and several pieces of property in Australia and England by various developers.

Henry Butcher Malaysia (Penang) director Dr Teoh Poh Huat said most of the exhibitors were happy there had been good response to the talks and forums.

SOURCE: The Star

BAYAN Lepas and Batu Maung in Penang’s southwest district and Batu Kawan in the south Seberang Prai district will be the new corridors of growth to boost the state?s development, said investPenang executive committee chairman Datuk Lee Kah Choon.

He said projects coming up at these places were the RM300mil Subterranean Penang International Convention and Exhibition Centre (sPICE), the Bayan Mutiara mixed-development project and Batu Kawan?s planned development as an integrated city.

“sPICE, under a public-private partnership agreement with SP Setia Bhd, will have a Penang People’s Park that includes the country’s first subterranean convention and exhibition centre,” he said in his talk titled “Live Market Update ” What is the future for Penang” at the Star Property Fair 2011.

There will also be a seven-acre public park on the rooftop, a refurbished Penang International Sports Arena, an aquatic centre and a four-star hotel with retail outlets.

“The project is scheduled for completion by 2014.”

“The Bayan Mutiara mixed-development project on a 40ha site will see the creation of presti-gious offices, special medical fa- cilities, commercial blocks, resi-dential enclaves, and retail and public spaces meeting contemporary and iconic global standards,” Lee said.

He said the planned development of Batu Kawan included the next Penang industrial park.

The plan is to turn Batu Kawan into an integrated city with residential, commercial and business zones incorporating education, leisure and medical facilities.

“These developments will create new jobs and spillover economic effects,” he said.

Lee also said recent investments by Bosch Solar Energy, Aviatron and Ibiden would generate new jobs for small-medium vendors in Penang.

Last month, Bosch announced a RM2.2b investment in a crystalline solar cells plant in Batu Kawan.

“Aviatron and Ibiden announced their investments in avionics components and a printed circuit board facility respectively in April,” he said.

SOURCE: The Star