Avenue Properties unveils country's first property interest scheme

KUALA LUMPUR (Feb 16): Avenue Properties Bhd has launched the country's first property interest scheme, the Avenue Hotel Property Scheme (APHS), which the company says offers a fixed annual return of seven per cent for the first 14 years of the scheme's 35-year tenure. The property is the 130-room Nusa Butterworth, strategically located in the Raja Uda business district in fast-growing Butterworth. It will commence construction in March with scheduled completion date in the first quarter of 2013. "The public are welcome to invest at RM4,800 per interest-share," said chief executive officer and managing director Richard Woo, adding from the 15th to the 35th years, the yearly return will be at a variable rate with a guaranteed capital return upon maturity. "This scheme is the lowest risk exposure as there is no financial encumbrance and is endorsed by the Companies Commission of Malaysia (CCM)," he told reporters at the launch of the scheme here on Thursday. Woo said the scheme is resilient to adverse market changes, has no hidden fees, and is regulated by a Trustee. Director of marketing and communications, Khong Yue Chen, said, "In compliance with CCM's requirements and guidelines, we also have appointed a Trustee for the AHPS." Added Woo: "I think to gain the confidence from the public to invest in this scheme is to let them see that the construction of the hotel is in progress. "We expect that this may generate public interest to subscribe to AHPS, which for the first time in the history of interest schemes, positions all risk considerations upfront for the potential investor and, in a most transparent manner." Avenue Properties, which is capitalised at RM5 million, has established under the AHPS 10,500 property interests of which only 7,350 interests are intended for public subscription. — Bernama