First Penang property project for GUH
Group managing director Datuk Kenneth H’ng told StarBiz that the project, comprising 322 units of landed properties on 16 acres or about 35% of the 46-acre site, had been approved by the local authorities.
GUH Holdings Bhd is planning the initial launch of an RM238mil residential project in south Seberang Prai next year following the acquisition of a 46-acre land bank for RM69.68mil in Simpang Ampat.
Group managing director Datuk Kenneth H’ng told StarBiz that the project, comprising 322 units of landed properties on 16 acres or about 35% of the 46-acre site, had been approved by the local authorities.
“The purchase of the land came with the master plan for the project, which has been endorsed by the local authorities,” H’ng said after the company’s AGM, which saw the signing of the sale and purchase agreement for the said land bank.
The site was purchased from Million Crest Sdn Bhd by Notable Empire Sdn Bhd, a wholly owned subsidiary of GUH, for RM69.68mil cash. The acquisition is scheduled to be completed in July.
“We plan to launch the project in the first half of 2015. Based on today’s property prices, we can expect the project to generate about RM92mil to the group’s revenue over the next five years.
“With the launch of our maiden property project in Penang, we expect our property division to contribute over 20% to the group’s revenue next year compared with 15% in 2013,” H’ng added.
He said the group was optimistic about the project, as it is close to the second bridge and 2.5km from residential and commercial projects such as Bandar Tasek Mutiara, Pearl City, Taman Tambun Indah and Taman Simpang Ampat.
At present, the group still has 150 acres of undeveloped land bank in Taman Kepayang, Seremban. The group has so far developed about 350 acres of its land bank there.
On its water treatment business, H’ng said the group was presently tendering for about RM170mil of water projects in the country.
“The unbilled contracts for our water projects to date is RM40mil. We should know the status of the tenders by the end of 2014,” he added.
On its printed-circuit board (PCB) business, GUH has in hand some RM60mil worth of orders for double-sided and single-sided PCBs to be delivered by the end of the second quarter.
“The orders are coming from the home audio, car audio, television and refrigerator manufacturers,” H’ng said.
For its first quarter ended March 31, the group posted a pre-tax profit of RM8mil on the back of RM77mil in revenue, compared with RM7.8mil and RM62mil respectively achieved in the previous corresponding period.
Source: StarProperty.my
OK. Let’s do a back of envelope calculations. 46 acres for 69 mil, that works out to be roughly RM35psf. And then RM92mil for 322 units of double storey terrace, that works out to be RM285k per unit. Very reasonable pricing. This is one good and honest penang-based developer. Pls give full support. Forget about EcoWorld, forget about Mah Sing, they are blood sucking KL developers!!
I don’t think it will be RM285k. The latest project that is still selling is Pavilion Park City 2ST is RM388k.
@Concern buyer
I did not pluck the number out of thin air.
“….Group managing director Dtuk Kenneth H’ng told StarBiz that the project, comprising 322 units of landed properties on 16 acres…….. We plan to launch the project in the first half of 2015. Based on today’s property prices, we can expect the project to generate about RM92mil to the group’s revenue over the next five years…..”
@Concern buyer
I did not pluck the number out of thin air.
“… that the project, comprising 322 units of landed properties on 16 acres…….. We plan to launch the project in the first half of 2015. Based on today’s property prices, we can expect the project to generate about RM92mil to the group’s revenue over the next five years…..”
This project is probably not located at a strategic location, based on the pricing, but it gives you an indication of how much it cost to build a double storey terrace house on a piece of land that cost RM35psf. Most land traded in Batu kawan now are at around RM50psf. So do your own maths, and you will know who’s honest and who is waiting to suck your blood dry!
@leader
There’s no honest developer. All selling at future pricing. LOL.
Base on current pricing, next year will be different lo. Anyway preparing the cash now to strike next year.
leader,
You did not pluck the number out of thin air but you got all the numbers wrong and yet ask us to give full support. Here is my interpretation.
Yes, RM69.68 mil for 46 acres is abt RM35psf land price.
Only 16 acres was approved to build 322 units with GDV (gross development value) RM238 million, that is abt RM739130 average selling price per unit.
16 acres is 696960 sqft to build 322 units, that is abt average 2164 sqft per unit for each unit LA plus shared road, drains, facilities, field area, etc. That means it is just probably normal 22x70ft LA DST nia, not large LA one.
RM238 mil GDV from 16 acres or 696960 sqft, that is abt average RM342 psf selling price, almost 10 times the land price of RM35 psf.
RM92 mil is the revenue income, that is abt 39% of RM238 mil and i believe 39% is under estimated, it should be more.
To me, this is just another typical developer, selling high future price. Hope you got it now.
Agreed n like your comment. LOL.
Honesty is not in their dictionary anymore?
I would say, you may put them on the greediness scale……who can score 10 out of 10?
Honesty is not in their dictionary anymore?
I would say, you may put them on the greediness scale……who can score 10 out of 10?
#1 Banks… without them approving loans, all these speculation won’t happen at all
@danny
Yes, the banks have been pretty reckless in the last 10 years. Just simply approve loans, all types of loans. That’s why household debt is so high.