Penang Property Talk

A newly proposed landed residential development by Greenview Villa Development Sdn. Bhd. at Kepala Batas. Located on a narrow 3.4-acre land near Jalan Pongsu Seribu, next to Taman Orkid Permai. It is just a stone’s throw away from Penang Matriculation College, about 10 minutes drive to Bertam Perdana Town Centre.

This development will feature 28 units of single-storey semi-detached with two different layouts and one unit of single-storey bungalow houses.

The project is still pending for approval, more details to be available upon official launch.

Property Project : (to be confirmed)
Location : Kepala Batas
Property Type : single-storey semi-detached and bunglow
Tenure : (to be confirmed)
Land Area: (to be confirmed)
Built-up Area: (to be confirmed)
Total Units : 28 (semi-detached), 1 (bungalow)
Indicative Price: (to be confirmed)
Developer : Greenview Villa Development SB

Location Map:

Malaysia’s central bank is expected to cut interest rates to a historic low next week, according to a slim majority in a Reuters poll, as it seeks to protect Southeast Asia’s third largest economy from the fallout of the coronavirus pandemic.

Bank Negara Malaysia (BNM) will cut its overnight policy rate (OPR) by at least 25 basis points (bps) to 1.75%, according to seven out of the 12 economists polled, with two of them betting on a bigger 50 bps rate reduction.

The remaining five economists expected interest rates to stay at 2.00%, already a record low, after three consecutive rate reductions in as many meetings this year.

Alex Holmes, Asia economist for Capital Economics, was one of the analysts who forecast a bigger move in the upcoming meeting.

“Given the poor outlook for growth and deeply negative inflation, we suspect the BNM will make use of its policy space and opt for a 50bp cut,” he said.

Malaysia began easing some lockdown measures imposed to contain the spread of the Covid-19 coronavirus in May. After growing just 0.7% in the first quarter, BNM said Malaysia is in an “unprecedented economic crisis” and was poised for a contraction in April-June.

While trade-reliant Malaysia had begun a “long and slow” recovery after some lockdown curbs were relaxed, Holmes said poor external demand and deflation warranted more policy easing.

Malaysia’s exports fell 25.5% in May, its biggest drop in 11 years.

The consumer price index fell 2.9% in May from a year earlier, as the economy grappled with subdued consumption for a third straight month.

The government in March rolled out a 260 billion ringgit ($60.69 billion) stimulus package to offset a sharp slowdown in domestic economic activity, and steep declines in tourism and demand for its commodities such as palm oil, crude oil and natural gas. ($1 = 4.2840 ringgit)

Source: TheStar.com.my

The project delivery partner for the Penang Transport Master Plan (PTMP), SRS Consortium, will have to prepare and present the financial architecture plan for the PTMP to the Penang government within a month.

Chief Minister Chow Kon Yeow said the financial architecture plan would enable the state government to view the cost and cash flow of the PTMP projects.

The three main components of the PTMP are the Bayan Lepas Light Rail Transit (BL LRT), the Pan Island Link (PIL1 and PIL2A) highways, and the Penang South Reclamation (PSR) project. It was reported that the estimated cost of the PTMP projects was RM46 billion.

Chow said the consortium was responsible to come up with RM1.3 billion in bridging finance while the state would have to provide RM1 billion.

“We will study the financial architecture plan before we make a decision. Let us not jump the gun,” Chow told a press conference after signing the project delivery partner master agreement for the PTMP at St Giles The Wembley Hotel in Magazine Road today.

Chow delivering his speech before the signing ceremony.

The master agreement was signed by Chow and Gamuda Berhad managing director Datuk Lin Yun Ling. It was witnessed by Penang State Secretary Datuk Abdul Razak Jaafar and SRS Consortium project director Szeto Wai Loong.

The SRS Consortium is a joint venture among Gamuda Berhad, Loh Phoy Yen Holdings Sdn Bhd and Ideal Property Development Sdn Bhd.

Among those who were present at the signing ceremony were Deputy Chief Minister I Datuk Ahmad Zakiyuddin Abdul Rahman, Deputy Chief Minister II Prof Dr P. Ramasamy, state executive council members and state assemblymen.

Chow said that the Penang government did not proceed with the advice given by the then Prime Minister Tun Dr Mahathir Mohamad, who proposed to the Penang government to set up a special purpose vehicle (SPV) for the issuance of bonds to be guaranteed by the Federal Government.

The advice was given after the Penang government had applied for a RM10 billion Federal funding for the proposed BL LRT project.

“We did not apply for any bond. It was premature at that time.

“Until now, the ‘advice’ has not been withdrawn,” Chow said.

Referring to the proposed PSR project, Chow said the project had captured the interest of industrial players.

“Many industrial players are expressing their interest in ‘Island A’ of the PSR project.

“In view of the current world economic situation and the trade war between China and the United States, industry players and investors are looking beyond China.

“The interest in Penang is very strong,” Chow said.

The PSR is a reclamation project that aims at creating islands totalling about 4,500 acres, off the southern coast of the Penang island.

Chow, in his speech, said that the PTMP projects are viewed as the state’s economic transformation projects for the next 50 years.

“The PSR project will enable the state government to provide quality affordable homes that are connected to an efficient transportation network.

“The entire PTMP is aimed at increasing the public transport ridership in Penang to 40%. The public transport ridership in the state is now at 8%,” he said.

Source: Buletin Mutiara

File Picture (for illustration only)

Ewein Bhd is terminating a joint venture agreement with Consortium Zenith Construction Sdn Bhd (CZC), under which the partners had initially agreed to jointly undertake the development of The City of Dreams 2 — a luxury condominium project — on a plot of land in Penang.

The group first announced the agreement on Dec 2, 2019, when it said its subsidiary Ewein Zenith II Sdn Bhd (EZII) will pay RM159.75 million to CZC for the land, while CZC shall procure approval from the Penang government to alienate the plot to EZII as the registered owner.

The alienation was to be part of the consideration for construction works on major roads and a tunnel to be undertaken by CZC, Ewein said then.

The transaction would have been a related party transaction as EZII is wholly-owned by Ewein Zenith Sdn Bhd; CZC holds an 11% stake in Ewein Zenith, while the remainder 89% is held by Ewein’s wholly-owned Ewein Land Sdn Bhd.

The land measures about 4.34 acres (1.76ha) and is located along Gurney Drive in George Town. The City Of Dreams 2 would have been the second joint venture project between Ewein and CZC. The two parties had earlier jointly developed the first City of Dreams, a now completed luxury seafront property development, with a gross development value of RM800 million.

In a filing this evening, Ewein said it had issued a notice of termination to CZC to inform it that EZII no longer intends to proceed with the agreement.

This is because Ewein has yet to obtain approval from its shareholders in an extraordinary general meeting which should have been convened three months from the agreement with an extension of one month, which was due on March 31, 2020.

“Pursuant to this termination, CZC shall refund EZII all monies which EZII has paid in accordance with the agreement within sixty business days from the date of the notice,” it said.

Ewein shares closed unchanged at 32 sen today, giving it a market capitalisation of RM92.06 million.

Source: EdgeProp.my

Ivory Properties Group Bhd has acquired two pieces of adjoining land in Penang, for RM142.79 million where it aims to develop commercial space and service apartments.

The Penang-headquartered property developer said the 19,800-sq-metre freehold land was located strategically in the established neighbourhood of Bayan Lepas directly opposite Queensbay Mall, the largest shopping mall in the state.

“The proposed acquisition presents an opportunity for the Ivory group to scale up its development in the said vicinity and complement its existing development projects,” it said in a filing with Bursa Malaysia yesterday.

Ivory Properties said its board was optimistic about the demand for the products to be developed on the land given the strategic location.

It said the land was zoned largely for commercial use and was currently used as car park space under tenancy.

The proposed acquisitions are expected to be funded by a combination of internally generated funds and external borrowings.

“Based on preliminary discussions, the indicative funding from internally generated funds is 30 per cent while indicative funding from borrowings is 70 per cent,” the company said.

Source: EdgeProp.my