OVER the years, Malaysian developers have turned Penang island into one of the hottest property markets in the country. In the mix is Runnymede Group of Companies.
Established in 1994 by its managing director Datuk Ramzan Ibrahim with Lembaga Tabung Angkatan Tentera, the group took its name from the heritage building Runnymede Hotel in Penang.
Prior to starting Runnymede, Ramzan worked for Citibank, which he joined in 1974. “I underwent intensive training at Citibank,” he recalls. “And after two years, the bank put me in property. There was a massive global property market meltdown in 1975 and the bank decided to recruit 60 officers from all over the world to be trained to handle the property business.
“We were sent to Paris for training for 3½ months where we learnt valuation and quantity surveying and were taught all the technical knowledge needed to understand the property market well.”
Clearly, all that training stood Ramzan in good stead over the years as Runnymede was able to withstand not only the 1997/98 Asian financial crisis, but also the 2008/09 global meltdown. On top of that, it has managed to survive in the highly competitive property industry.
“The key is how you structure your transactions, purchase the land and, more importantly, identify your property and select the site for your development,” remarks Ramzan.
His advice to young developers is: “Don’t be greedy. In terms of prices, you must ensure you can sell some units to break even. For instance, the slowdown today was caused by the central bank’s move to stop the market from overheating. One has to be receptive to it.
“You could come up with some innovative structure or move on to another project that could diversify your risks. If you can see there will be a slowdown and that your cost will be affected, you have to adjust accordingly. You must be on your toes because the property market is cyclical. When the times are good, you must move quickly.”
 |
| We always ask ‘what if?’ So we always build into our plans a Plan B. - Ong |
Ramzan’s right-hand man and technical director Ong See Lian attests to his boss’ emphasis on risk management. “We always ask ‘what if?’ So we always build into our plans a Plan B. In case something happens to the original plan, we can start on Plan B straightaway.”
The Sanctuary’s Vilaris Courtyard Homes
Runnymede’s maiden project in Penang is the 28-acre The Sanctuary in Batu Uban. Situated about 10 minutes from the Penang International Airport and five minutes from Queensbay Shopping Mall, The Sanctuary is a premier gated community and is being developed in four phases.
The RM160 million Phase 1, which is also called The Sanctuary, sits on 12.81 acres and features 56 high-end bungalows, 11 semi-detached houses and two townhouses. This phase, which boasts RM1.5 million worth of security features, was completed in 2010 and is now fully occupied.
Runnymede is now launching the RM125 million Phase 2, which is called Vilaris Courtyard Homes. According to Ramzan, Vilaris is a combination of the words “villa” and “laris” (which means to sell well in Bahasa Malaysia).
The 5.36-acre Vilaris offers 56 courtyard homes with a minimum area of 24ft by 80ft. The built-ups start at 3,940 sq ft and the launch price at RM2.3 million. The take-up rate is about 50% after 24 units were snapped up at an earlier private preview.
As Vilaris is a low-density development, space is not an issue. “We are not a quantity developer but niche,” Ramzan points out.
Once completed, the courtyard houses will offer design elements that are not common. “When we were designing the houses, we thought of the people who would be living in them, especially the different generations,” says Ramzan. “Also incorporated into Vilaris is a modern rendition of traditional Peranakan [or Straits-born Chinese] designs, such as inner courtyards.”
 |
| How the courtyard homes will look like once completed |
Interestingly, the Vilaris show unit features a porch that slopes beneath the first level of the house. “We have basically tucked the cars below the house,” Ramzan explains. “So when you open the sliding doors for ventilation, you have an unobstructed view.”
According to Ong, the porch is also designed in such a way that it serves as a space for small functions.
There are two entrances to the houses. One has to ascend some steps to reach the main entrance while the second is on the lower level, which leads one to a space that Ramzan says has three possible uses.
It could be a granny flat with access to a small back garden for the older generation to potter around. It is also private because of a linear garden in the back. “Boundary to boundary, there are 20ft between the houses,” Ong says.
The space could also be a SoHo. “It would be ideal for an office for those who work from home,” says Ramzan. “It is separate from the rest of the house and will not disturb the occupants.”
Lastly, it could be used as guest quarters, a den, a children’s rumpus room or an audio-visual room. The key word here is flexibility.
The courtyard on the first level of the homes brings the Peranakan element to light. It allows in plenty of natural light, which is something Ramzan is passionate about. “Natural light and cross-ventilation are very important,” he says, gesturing to the double-volume windows of the staircase to prove his point.
The first level is an open space that flows seamlessly from the living and dining areas to the kitchen. The airiness and spaciousness give the homeowner flexibility in designing the interior to his taste, says Ramzan. However, under the deed of mutual covenant, the homeowner must maintain the façade of the house. The en suite bedrooms are on the top floor of the homes.
Another unique design element that the developer has built into Vilaris is the option for some of the units to have a lift. At present, 19 units have lifts, says Ramzan, adding that not all homebuyers want a lift. However, if one buys a unit with space for a lift and wants one installed before construction starts, Runnymede will do it for a fee. After vacant possession, the homeowner has to undertake the installation and cost himself.
Ramzan says Phase 3 of The Sanctuary will feature three condominium towers with 500 units but will not reveal the details, except to say the phase will be different and something not seen before in Penang. A preview is scheduled for the first quarter of next year.
 |
| Top: The linear park within the development. Bottom-Left: The family area in the Vilaris show unit. Bottom-Right: The design allows plenty of natural light into the homes |
The last parcel will feature a stratified high-rise, but all Ramzan and Ong are willing to share is that it will be eco-friendly. Previews will possibly start in 2015.
As the Penang property market is still quite active, Ramzan and Ong see bright prospects for the rest of this year and next year, barring unforeseen circumstances.
“The market will not move as aggressively as it did last year because of Bank Negara Malaysia’s initiatives, but it will still be on an upward trend,” opines Ramzan. “The speculators are quite quiet now. They are the ones who use DIBS [developer interest-bearing scheme] to buy four or five houses and wait. But they will slowly vanish. When that happens, the market will be much healthier.”
Ong agrees. “The market will be sustainable and property values will continue to rise as land gets scarcer and the population increases. Malaysia will become attractive to foreign buyers as well because relative to other major cities in Asia, our properties are still very affordable.”
At present, Runnymede has landbank in Penang, Kuala Lumpur and Western Australia, where it has a one-acre residential project on Swan River in Perth and a 25-acre tract in the Margaret River region for a resort and residential development. The details of these projects are still being ironed out.
The group also has 20 acres of development land in Penang and 12 acres in Kuala Lumpur, plans for which are still being drawn up.
This article first appeared in The Edge Malaysia Weekly, on September 23, 2013.
