Housebuyers at a dead end

IT’S been 10 years and housebuyers of more than 60 abandoned houses in Taman Bukit Permai are still waiting for their houses to be completed. Six abandoned houses along Jalan Bukit Permai 2 were 95% completed and overgrown with weeds. The buyer of one of the six houses, Choo Lee Mae, said she has been waiting for over 10 years. “We are left in a lurch, we do not know who to approach for help. I have given a copy of the sales and purchase agreement to the liquidator,” she said. Makeshift carpark: A car parked inside this abandoned housing project in Taman Bukit Permai. A councillor with the Kajang Municipal Council (MPKj), Lee Kee Hiong, who visited the site with another councillor Eddie Ng, urged the housebuyers to come forward to provide details. “We do not have the contact details of the buyers as no land titles were issued. “This is a complicated case as the liquidator is only in charge of unsold houses,” she said, adding that the council will act as a coordinator. She can be contacted at 03-9010 3137 or leekeehiong@gmail.com or visit her service centre on Mondays, Wednesdays, and Fridays, 8pm-10pm, at 33-2, Jalan Temenggung 9/9. Bandar Mahkota Cheras. Not much have changed since the abandoned project was highlighted in StarMetro (“Task force to monitor abandoned projects”, March 26) eight months ago. “Some of the cars dumped in the area were towed away by council enforcement officers. We have since spoken to the liquidator but to no avail. “The Ministry of Housing and Local Government was notified of this abandoned project but no action has been taken to date,” Lee said. There were even cars abandoned in some of the houses. Forty-five notices were issued to the liquidator under the Street, Drainage and Building Act 1974, Section 46(1)(e) for having derelict vehicles in any public place. Lee said she would check with the Customs Department if the cars were brought into the country illegally. Chong Nyit Seng was furious that his abandoned house was used as a dumping ground for cars. He claimed that a makeshift porch was also erected without his knowledge within the compound to provide shade for the cars. “I did not give permission to have these cars placed here. “Years ago when I first found out that the project was abandoned, I contacted the lawyer who handled the sales and purchase agreement but it was all in vain,” he said. On the issue of abandoned cars, V. Mathevan, who lives in the nearby Taman Desa Permai, said six cars were brought to his neighbourhood on Sunday. He promptly notified Lee. “I’m afraid that more will be dumped here and that it will become a breeding ground for mosquitoes,” he said. - The Star

Solution to stop flooding for good

A LONG-TERM solution involving the widening of the drain in Jalan Arratoon is being planned to overcome floods near Lebuhraya Pykett, Jalan Westlands, Jalan Khaw Sim Bhee and Jalan Anson in Penang. State Local Government and Traffic Management Committee chairman Chow Kon Yeow said that these areas were frequently affected by floods. He said the main cause was the bottleneck when the water flowed down to Jalan Arratoon leading to the sea. “The drain there is only 2.13m wide,” said Chow at a press conference at Lebuhraya Pykett yesterday. As a long-term solution, Chow said that the council was looking into getting that drain widened in the near future. Small and narrow: Chow (right) and some residents checking the drains along Lebuhaya Pykett “We are working on an agreement with the new land owner to provide some space for the council so they can widen the drain,” said Chow. He said that the council was working on two short-term projects to mitigate flooding. “The first one is upgrading the drains along Jalan Burmah from the junction of Jalan Arratoon to SRJK (C) Union. “The project started on Friday and is expected to be completed by the end of next month,” said Chow. He said the second project was to repair the box culverts along Jalan Burmah from Lebuhraya Pykett until the junction of Jalan Arratoon. He added that the cost of the projects was RM173,549 and RM90,044 respectively. “Although we are working on the short-term solutions, we are considering a long-term solution to be completed in three years,” he said. - The Star

NGOs against land swaps

GEORGE TOWN: The Penang Government should use state land as collateral to obtain loans from banks to start proposed mega road and sea tunnel projects. This is better than allowing developers to deal in land swaps and be given the right to reclaim prime land near or off Gurney Drive in exchange for RM8 billion worth of such projects, said Sahabat Alam Malaysia and Consumers’ Association of Penang president S.M. Mohamed Idris. Idris said there should also be a public hearing and an inquiry of all reclamation and mega pro- jects before they were awarded to avoid unnecessary compensation later. Idris said that in Hong Kong and Singapore, the governments reclaimed the land on their own and sold them for higher profits. Idris was commenting on the state government’s proposal to adopt a land swap scheme with developers to build three roads and a tunnel. The roads are a 4.2km road from Gurney Drive to the Tun Dr Lim Chong Eu expressway, bypassing the city centre; a 4.6km road linking Bandar Baru Air Itam to the same expressway and a 12km dual-carriage road from Tanjung Bungah to Teluk Bahang to pair with the existing coastal road. The 6.5km sea tunnel is to connect Gurney Drive on the island to the north of Butterworth. On the proposed RM120mil Escape Theme Park project in Teluk Bahang, Idris said there was no need for such a park in the state. Penang Institute senior research fellow Datuk Dr Goh Ban Lee is also not in favour of the road and tunnel projects, saying they would only bring in more vehicles into the island. “We should look into adding more buses and bus routes to improve public transport. What would a high-cost tunnel do for Penang other than reduce travelling time?” he said. Malaysian Nature Society advisor Kanda Kumar said that if the land was to be reclaimed for the project, the government must ensure that they should not be converted into freehold status. “At least leasehold land will not be given away permanently. If we keep on giving away land and then reclaim some more, the environment will be damaged,” he said. Penang Citizens’ Awareness Chant Group advisor Y.C. Lee said there should be public hearings held for any proposed reclamation or mega infrastructure projects. “Such projects may be sustainable, but there should be a proper study, public comment and feedback on them,” he added. - The Star

槟耗资逾12万种进口树 海墘路将变林荫大道

（槟城28日讯）槟州政府耗资12万7470令吉种101棵进口树，要在2年内将海墘路蜕变成林荫大道。 12万7470令吉栽种101棵树，这意味槟州政府在海墘路栽种一棵树的经费为1262令吉。 周一上午，槟州地方政府委员会主席曹观友行政议员及槟岛市政局主席芭堤雅一行人在红灯角码头一带的海墘路双向道的分界堤上栽种树木，以逐步打造绿化乔治市的宏愿。 曹观友：绿化红灯角码头道路 曹观友议员说，槟岛市政局计划从海墘路（Weld Quay)的《光华日报》旧址到槟岛邮政局总部全长约550公尺的分界堤上栽种101棵树木，以绿化红灯角码头一带道路。 他说，当局选用4种品质优良的进口乔木，即：Bucida Molineti、Gardenia Carinata、Jacaranda Obtusifolia及Syzgium Campanulatum乔木，分批栽种在海墘路分界堤上，每棵20尺高的树之价格为800令吉。 曹观友说，槟岛市政局从本月初开始在海墘路种树，并加宽及加高分界堤，以让树木茁壮成长，2年之内绿叶成荫，美化海墘路。整个绿化经费耗资12万7470令吉，预计将于本月底完成海墘路的种树计划。 他说，为了栽种树木，海墘路的分界堤从原本的1尺半宽度，拓宽至4尺半至5尺宽。高度从原本7寸添高至13寸。并挖深土地一米之深，以让树木稳固扎根。 曹观友透露，槟岛市政局将于明年初在柑仔园，即从加马购物中心前至柑仔园及霹雳路交界处的分界堤上栽种280棵乔木。 他说，槟岛市政局已于去年在沓田仔分界堤成功栽种树木，目前也在华盖街一带的乔治市海湾酒店前的友谊公园栽种树木。 相关照片 ■ 曹观友议员及槟岛市政局主席芭堤雅主持海墘种树推介礼。 ■ (右起）林清和市议员及郑来兴市议员为进口树浇水。 ■ 212万7470令吉栽种101棵树，州政府在海墘路栽种一棵树的经费为1262令吉。- 光华

Tan brothers look to 'conquer' Penang

KUALA LUMPUR: For a while now, there has been speculation about who would partner Ivory Properties Bhd in its multi-billion ringgit Bayan Mutiara project in Penang. That was ended when it roped in Dijaya Corp Bhd. They now plan to build residential and commercial properties on the land, estimated to generate sales of some RM10 billion. This is not their first tie-up. Within the Batu Ferringi tourism belt, Dijaya has a joint-venture project called "10 Island Resort" with Ivory. In Bukit Mertajam, Dijaya has a mixed development project dubbed Aston Villa, in which Ivory is the turnkey developer. But that partnership has overshadowed an interesting fact. Penang has now seen the entry of two highly successful businessmen and both happen to be brothers. Dijaya is controlled by Tan Sri Danny Tan Chee Sing, the younger brother of Berjaya Corp Bhd founder and chairman Tan Sri Vincent Tan Chee Yioun. Barely three months ago, the senior Tan made a comeback to Penang as a property developer after a hiatus of nearly two decades. The Berjaya Group - via Berjaya Land Development Sdn Bhd - signed a deal to buy 22.8ha of prime freehold land within the Penang Turf Club for RM459 million. At the signing ceremony in Penang, Vincent did not mince his words in expressing his displeasure with the previous state government. Vincent's approval of the current state administration is a strong signal to other developers that the island state has plenty of potential. And this probably explains Danny's continued interest. The latest alliance with Ivory is a very big undertaking and one which will ensure its presence in the state for many years to come. Danny, the man behind Petaling Jaya's Tropicana Golf and Country Resort, will have his hands full with the latest venture. As for Vincent, he did not discount the possibility of enlarging Berjaya Group's footprint in Penang. Together, the Tan brothers will be a force to be reckoned with in Penang. marinae@nstp.com.my - Times Read more: Tan brothers look to 'conquer' Penang http://www.btimes.com.my/Current_News/BTIMES/articles/monvy/Article/#ixzz1f3VcJx6S

China to maintain curbs on property market

BEIJING: China will maintain restrictions on the property market, vice-premier Li Keqiang has said, despite growing speculation that curbs could be eased to prevent a damaging slump in prices. Real estate sales and prices have been falling nationwide due to tough restrictions on purchases and bank lending, fuelling fears that the market could collapse and send debt-laden property developers to the wall. China’s property market was “in a key stage” and restrictions needed to stay in place to “promote the healthy development” of the sector, the official Xinhua news agency quoted Li as saying on Sunday. “We must maintain policies to prevent property prices from rising overly fast and further consolidate the results of the controls,” Li said. China has introduced a range of measures aimed at bringing down property prices the last year, such as bans on buying second homes in some cities, hiking minimum down-payments for buyers and introducing property taxes. A surge in bank lending in recent years has fuelled investment in the real estate sector and pushed property prices out of the reach of many ordinary Chinese, angering people struggling to buy their first home. The government would maintain restrictions and step up construction of low-cost housing to “satisfy the multiple and diversified housing needs of the public,” Li said. Li’s remarks echoed those of Chinese Premier Wen Jiabao, who recently said house prices should return to “reasonable levels” before policies were eased. Renmin University in Beijing said last week it expected the government to relax some property market curbs next year due to concerns that slumping prices could hurt growth in the world’s second largest economy. Cash-strapped local governments were heavily reliant on revenue from land sales, and the central government would likely intervene to prevent property prices from falling more than 25%, it said in a report. Property investment was also a contributor to economic growth, so Beijing might act to help ensure gross domestic product growth – which creates jobs and prevents social unrest – remained strong, it said. Official data showed the number of major Chinese cities posting a drop in home prices doubled to 34 in October from September, in a sign efforts to cool the country’s surging property market are working. — AFP

Kobay may privatise subsidiary Lipo

PETALING JAYA: Kobay Technology Bhd, the parent company of Lipo Corp Bhd, is considering an exercise to privatise the latter, according to reliable sources. The industry sources pointed to the fact that Kobay already owned 53.16% of Lipo, was cash-rich and Lipo was trading at a significant discount to its net tangible asset (NTA) value of RM1.60. It is understood that the advisory services of an investment bank has already been sought for the proposed deal although it is not clear which bank is involved. Both Kobay and Lipo are Penang-based companies involved in the manufacture of precision engineering equipment, although as of late last year, Lipo had ventured into property development. The Kobay-Lipo group is 26% owned by the Koay brothers Datuk Koay Hean Eng, Koay Cheng Lye and Koay Ah Bah. Hean Eng and Cheng Lye are common directors of Kobay and Lipo. Kobay's management was unavailable for comment. “Kobay is taking the cue from the flurry of privatisations that has taken place on Bursa Malaysia, stemming largely from the undervalued nature of the assets,” said a source. Kobay has more than RM60mil in cash and cash equivalents, which means that funding the privatisation should not be a problem. It will cost Kobay some RM27mil to buy back all the shares in Lipo it does not own at current prices or slightly over that if it is going to pay a premium to market. Lipo itself has a clean balance sheet, with RM28mil in cash and cash equivalents and with very little borrowings. Its venture into property development in Penang started last year when it bought nine lots of freehold land measuring a total of 47,679 sq ft in Tanjung Bungah for RM6.88mil or about RM144.30 per sq ft. It then said the plan was to develop that into residential and commercial properties. Lipo had also told shareholders then that the expansion into property development was a diversification strategy to help it move away from depending solely on the existing precision component manufacturing business, which was cyclical. The management of Lipo and Kobay had then declined to elaborate on the property development venture. Lipo's earnings fell to RM1.6mil in its latest quarter ended Sept 30, 2011, from RM2.7mil earlier due mostly to unfavourable performance of its China segment as result of the change of sales mix of overseas precision components and the loss incurred by the setup of a subsidiary in China. Since Kobay increased its shareholding in Lipo last December, Lipo's share price has risen by some 80% to RM1.14 per share last Friday. - The Star

To better serve women

THE Women’s Centre for Change (WCC) Penang is still short of RM1.5mil of its fundraising goal for its new premises on Burmah Road, George Town. Its president Mariam Lim said the total target was RM2.5mil to cover the building cost of RM1.5mil and the renovation cost of up to RM1mil. “To date, we have raised a total of RM1mil, which is 40% of the target,” she said. “We hope the public can support us with donations, as the new building is aimed at providing better facilities for single mothers, children and youth.” Lim said the three-storey building on Burmah Road had been vacant for a few years and required renovation. “The building, covering a 5,000sq ft built-in area, will give the centre more space for counselling services, seminars and training activities,” she said. “We are planning to rent out the ground floor which covers 1,500sq ft with an offered price of RM5,500 per month. “The rental is negotiable. This is aimed at generating income for the centre.” Lim was delivering her speech during the soft launch of WCC’s building fund themed ‘Give, Build, Change’ at the Little Penang Street Market on Sunday. The launching ceremony was kicked off with a live singing performance by Jazz singer Dasha Loganathan. Also present were Bukit Mertajam MP Chong Eng and state Youth and Sports, Women, Family and Community Development chairman Lydia Ong Kok Fooi. For details or to make a donation, call 04-2280342 or visit www.wccpenang.org/givebuildchange. Tax-exempted receipts will be issued for those who donate at least RM50. - The Star

Resort lifestyle of condo a draw for westerners, says developer

CAUCASIANS comprise the bulk of those purchasing the RM255mil Infinity Beachfront Condominium that recently clinched the FIABCI Malaysia Property Award 2011 under the residential (high rise) category. Hunza Properties Berhad executive chairman Datuk Khor Teng Tong said the project attracted Caucasians because it had access to a 105m-long beachfront as well as a 136m-long river frontage. “Beachfront accessibility is a key attraction for Caucasians as they prefer a beach resort lifestyle. “While the project was still under construction in 2008, we adopted Sungai Kelian to beautify and maintain its cleanliness for the long term. “Hunza and the FIABCI Penang Branch used the effective microorganism (EM) biotechnology to clean the river. It is now free of sludge and its water clearer,” Khor said. “The Caucasians, forming about 65% of the buyers, are from countries such as Britain, the United States, Australia, Belgium, Switzerland and Canada,” he said. He said other foreign buyers came from countries such as Vietnam, Hong Kong, Indonesia, Korea, Macau and Singapore. Khor also said the company’s RM480mil Gurney Paragon condominium project attracted many purchasers from Singapore, Indonesia, Hong Kong, Korea and Macau as the project was close to shopping malls and lifestyle facilities. He said this at a recent cocktail event in Penang to celebrate Infinity’s FIABCI award win. The event was attended by business partners of the project and corporate leaders. The project, comprising 119 condominiums units and penthouses, obtained the certificate of fitness (CF) in 2010. It is all sold out except for four of the eight penthouses. Initiated 19 years ago, the FIABCI Malaysia Property Award invites the best projects in Malaysia to contest in various categories. The winning projects this year will represent Malaysia in the international competition FIABCI Prix d’ Excellence awards which will be held in St Petersburg, Russia, in May next year. FIABCI is the acronym for Federation Internationale des Administrateurs de Bien-Conselis Immobiliers (International Real Estate Federation). - The Star

Influx of office space in Klang Valley worsens oversupply situation

KUALA LUMPUR: An influx of office space in the Klang Valley is putting a downward pressure on yields. Property consultants said the entry of more office space was making the oversupply situation worse. However, they said the situation could be remedied should the economy perform better, thus keeping demand afloat. “In certain areas, yields will be pressured downward because of the glut situation. But this is also highly dependent on the location of the offices. Those located in prime areas will have less chance of coming under yield pressure,” DTZ Debenham Tie Lung executive director Brian Koh told StarBiz. Khong & Jaafar managing director Elvin Fernandez said that the slightly higher vacancies this time around was “not too abnormal a situation”. “The thing about property cycle is that there can be a glut today but this oversupply condition can be offset if demand returns. I do not view it as being serious, “However, there could be a lot more supply that would flood the office space sector in the medium to long term,” he said. There were 20 million sq ft of vacant space in the Klang Valley, 22.5 million sq ft of office space under construction and 25 million sq ft which had been approved for construction. The Government recently earmarked several areas for commercial development such as the KL International Financial District in Jalan Tun Razak, the 100-storey Warisan Merdeka, the Sungai Besi military airport and the Rubber Research Institute land in Sungai Buloh which are expected to come onstream within the next 10 years. Meanwhile, a report by CB Richard Ellis released earlier this month revealed that office yields in Kuala Lumpur prime area had been flat from 2005 until 2011, ranging from a low of 6.25% to a high of 6.75% (see chart). The report also showed the office space vacancy rate in the Klang Valley was under 13% on an average basis, which consultants said could rise once new space came in with the completion of several mega projects. “With all the large-scale development projects coming in, we are looking at a potential oversupply situation but if the economy does exceptionally well despite the problems in the eurozone, this problem would ebb,” said Koh. Vacancies had risen during the 2008 global financial crisis in prime office spaces and rental rates had been on a slight decline. The prevalent trend among corporates was to move their bases away from the city centre into newer office buildings within other established suburbs such as Petaling Jaya and Klang as many of the workers lived in these suburbs. “After the My Rail Transit has been completed, office development would focus back to the city centre as long as they are affordable and corporates can make a decent profit even after paying off these leases. I expect this trend to reverse and that Kuala Lumpur will remain at the primacy of development in the Klang Valley,” Fernandez said. - The Star