Thursday 26 April 2012

Pearl City Business Park Kick-Started

Tambun Indah will invest RM35mil to construct an International school in its Pearl City Business Park and will lease the building to Straits International School for 20 years. For the residents of Pearl City (Bandar Tasek Mutiara), this is an absolute great news. But for Tambun Indah shareholders, is it a good news?

RM35mil  is not a big amount nor a small amount of money. It's difficult to tell now whether it will benefit the company in the long run. This will very much depend on the rental rate. However, generally it is a good move by Tambun Indah to enhance the value of its RM2 billion major development at Pearl City.

The International School, which is expected to open in 2014, may attract more franchise business and hypermarket here. Together with the nearby new Jit Sin SPS branch, the housing development in this area is sure to see increase in demand. Tambun Indah may sell its property here at higher price yet seeing a good take up rate. In the long run, this move is an encouraging one.

It is not sure how well the international school in mainland Penang will be accepted, since this is only the first one here. However, it's worth a try, as more foreign investment can be seen in the mainland now. Local people may have a choice to send their children to international school as most government schools are too academic-oriented, stressful and infested with gangsterism.

After the international school, what's next? Could it be a hypermarket or a private hospital?

Anyway, this is just an MOU which is valid for 6 months, and not finalized yet.

     Pear City proposed business park

     PCBP: Pearl City Business Park, TIFD: Tambun Indah future development
     PI: Pearl Indah, PG: Pearl Garden, PV: Pearl Villa, PR: Pearl Residence
     PS: Pearl Square Commercial, SW: Star Walk Commercial
     SA: Simpang Ampat town center, KTM: KTM station
     KK: Klinik Kesihatan, POL: Police station
     BB: Boon Beng primary school, JS: Jit Sin SPS branch
     Tol: PLUS Tambun tol, BMIA: Bukit Minyak Industrial Area

 “We are pleased with the signing of this MOU as it was always in the Pearl City Master Plan to have a world-class educational centre of excellence within our integrated city to fulfil the demand from the growing population in Mainland Penang.

The setting up of Straits International School at Pearl City Business Park will go a long way in enhancing the attractiveness of our ever-expanding township, and strengthen our value proposition as a fully integrated and self-sustaining development.”

Ir. Teh Kiak Seng (“鄭克生”) Managing Director, Tambun Indah Land Berhad

“We chose to work together with Tambun Indah because we believe in the future success of the Pearl City integrated township. After all, it is expected to have a catchment area of more than 50,000 people by 2020, and at present, there are 400,000 people within 15km radius from Pearl City.

Furthermore, its close proximity to 12 industrial parks – with potentially more on the way thanks to Penang’s booming economy – as well as its established and growing transportation infrastructure makes it the ideal place to set up the school.

We look forward to a rewarding partnership with Tambun Indah as we cater to the quality educational needs of this vicinity.”

Mr. Desmond To (“杜涇福”) Founder, SIS Charter Sdn Bhd


From The Star

PENANG’s leading property developer on the mainland, Tambun Indah Land Berhad, will build the first international school on the mainland in the integrated township of Pearl City in Tambun, Seberang Prai.

Tambun Indah signed a Memorandum of Understanding (MoU) with SIS Charter Sdn Bhd to develop the Straits International School (SIS).

Tambun Indah’s subsidiary company Palmington Sdn Bhd will develop the project.

At the signing of the MoU at Equatorial Hotel, Tambun Indah was represented by its managing director Teh Kiak Seng while SIS Charter was represented by its chief executive officer Lita Nasyitah Goh Abdullah.
SIS Charter is the owner and operator of the school.

SIS Charter chairman Dr Roslan A. Ghaffar and State Local Government and Traffic Management committee chairman Chow Kon Yeow witnessed the signing.

Also present at the signing on Saturday were Tambun Indah’s executive directors Teh Theng Theng and Thaw Yeng Cheong, its financial controller Steve Neoh and SIS patron Toh Puan Mariam Mustapha.

The school will be built on a 2.63ha land in Pearl City and have a built-up area of 18,580.61sq metre.

In his speech, Kiak Seng said it has always been part of the Pearl City Master Plan to have a world-class educational centre within the integrated city to fulfil the demand of the growing population on the mainland.

“The setting up of this school will go a long way in enhancing the existing attractions of our ever-expanding township and strengthen our value as a fully integrated and self-sustaining development,” he said.

Estimated to cost RM50mil, Palmington will invest RM35mil to develop the school while SIS Charter will invest about RM15mil for school equipment, furniture, interior decoration and air-conditioning.

Kiak Seng said the school would be able to handle a student population of between 800 and 1,200 when it opens in 2014.

Mariam said the school would see state-of-the-art security system being installed including the use of key-cards for students.

“The key-cards, incorporating the GPS (Global Positioning System) technology would be able to track the movement and whereabouts of the students within the school compound and could be used to keep track of their attendance and other records,” she said.

SIS will offer the Cambridge International Curriculum to students aged between seven and 16.

Tuesday 24 April 2012

SPT & SPU Development Plan

SPT & SPU: The development plan that house buyers / investors may want to know.

Orange colour: Residential
Blue colour: Commercial
Purple colour: Industrial
Green colour: Agricultural

Blue/Purple dotted line: proposed roads

Butterwoth area: Taman Bagan, Harbour Place, Carissa Park, Carissa Villa, The Residence Bagan Lallang, Tanjung Heights, De Centro Apartment, Tanjung Heights, Dahlia Park, Capri Park, Orange Residence, Orange Avenue, Atlantic Apartment, Palm Villa. 

Note the undersea tunnel at Bagan Ajam.

Seberang Jaya area: Villa Primero, Rivere Garden, Primo Heights, Kelisa Residence, Kelisa Heights.

Note the proposed roads that link all these development to North-south Highway, Butterworth-Kulim Expressway and Jalan Permatang Pauh.

Bukit Tengah area: Gemilang Permai, Central Way, Taman Indah, Bayu Mutiara, Desa Titi Panjang, Icon City.

Juru area: Carnation Villa, Taman Seri Juru, Juru Heights, Villa Cendana.

BM town: Aston Villa, Sunway Wellesley, BM Residence, Orange Villa, Harmoni Residence, Rambai Heights, Taman Betik Indah.

Note the proposed road linking Orange Villa to BM Residence.

Permatang Tinggi area: Permatang Sanctuary, Impian Residence, Taman Seri Impian, Desa Impian, Taman Impian Murni, Jesselton Hill, Impiana Commercial Hub.

Bukit Minyak area: BM Utama, BM Permai.

Note the proposed roads linking BM Utama, BM Permai, Industrial area and Taman Markisah/Taman Sukun.

Alma area: Jesselton Hill, Hillpark Residence, Garden Residence, Tropicale Residency, Alma Indah, Alma Ria, BM Highland.

Note a piece of land for agricultural use deep inside Alma (besides Jesselton Hill)

Alma area: Pusat Bandar Alma, in between Taman Alma & Taman Permata. The area is still undeveloped.

Machang Bubok area: BM Highland, Tropicale Residency, Garden Residency

Note the proposed road linking BM Highland to Tropicale Residency.

Monday 23 April 2012

Batu Kawan Development Plan

While the Penang Second Link is getting closer and closer towards completion, the property in Batu Kawan area is still not getting much attention.

So far, besides the Dedaun bungalow series, almost all other property development in Batu Kawan are low-medium cost home, without any major commercial development. This may be the reason most property investors think that this is not the time yet.

However, with the arrival of a few factories and the marvelous HDB-flat-like apartment in the area, the heat can be felt slightly now. Some rich folk may even start to think of getting one or few units of so-called affordable housing scheme apartment by the Penang government.

Besides PDC, which apparently owns a big chunk of land in Batu Kawan, Equine Capital also will play a major role in the development here. PDC has completed Dedaun phase 1 and a few Taman in the northern boundary. While Equine has just completed a few hundreds units of affordable landed houses at its Crescentia Park namely the Studio S, M, L & Clover.

     Crescentia Park: just 20% completed

From a glance of Batu Kawan future development plan, the current completed houses in Crescentia Park including the under-construction Callisia only comprises about 20% of the total area. Apart from this Crescentia Park, Equine seems to have another huge development at the southern area of Batu Kawan, which is a new 300-acres commercial hub.

     The new commercial hub is no.6 here

It is "rumoured" that Mahsing has already bought a piece of land here for development. Where can the land be? Is it the land below no.1 golf course? If it is true, then we can expect "better house & living" here, but don't expect it will come cheap!

     This 450-acres Eco-Township is the Crescentia Park.
     No.5 is for the affordable housing scheme.

      Not many area for industrial (purple) actually. Honda and Ibiden is there.

The housing area (brown colour) at the north of no.6 new commercial hub belongs to PDC's Dedaun phase 2, if not mistaken. So we can see that apart from those mentioned earlier: the Crescentia Park, state government affordable housing scheme and a few PDC's land at north & east of Batu Kawan, there will be no more residential area here.

Currently, Batu Kawan is still not a convenient place to live for many people. In the future, surely this will change, but how long will it takes? Five years or 10 years?

Thursday 5 April 2012

Another Tambun Indah Project in Butterworth

Tambun Indah has joint-ventured with a few Indian land owners to jointly develop a prime land in Butterworth area. This should be its sixth condo project here after Carissa Park, Dahlia Park, Tanjung Heights, Capri Park & Kelisa Residence.

If not mistaken, the land which is about the size of 1.5 football field, is somewhere around Jalan Mengkuang, which also features a famous Indian hall. This joint venture will save Tambun Indah the cost to acquire the land.


Perquest (a wholly-owned subsidiary of Tambun Indah) had, on 2 April 2012 entered into a JVA with the executor of the Landowner to jointly develop all that piece of freehold development land located in Town of Butterworth, Seberang Perai Utara, Penang known as Lot No. 185 and 186 Seksyen 2 held under Geran No. Hakmilik (First Grade) 24008 and 24009 respectively with a total land area measuring approximately 3.26 acres (“JV Land”). Perquest planned to develop 7 units of Shop Offices and 148 units Apartments on the JV Land.

Under the terms of the JVA, Landowner shall allow Perquest to develop the JV Land in return for a total consideration of –

(i) RM300,000, which will be paid upon execution of the JVA;

(ii) 3 units of Shop Offices based on a market value of RM3,116,500 only to be constructed and completed by the Developer on the JV Land at Developer own cost and expenses;

(iii) 27 units of Apartment based on a market value of RM6,646,000 only to be constructed and completed by the Developer on the JV Land at Developer’s own cost and expenses; and

(iv) If the Developer constructs more than 7 units Shop Offices and/or more than 148 units of Apartments, the Developer agrees to give the Landowner additional payment/consideration calculated of the following manner:

a) For each additional Shop Office constructed on the JV Land, the Developer shall pay to the Landowner 38% of the sale price for each additional Shop Office;

b) For each additional Apartment constructed on JV Land, the Developer shall pay to the Landowner 18% of the sale price for each additional Apartment.

The above consideration was arrived at, after taking into consideration the prevailing market value and the development potential of the JV Land. The total estimated Gross Development Value is approximately RM37,500,000 (excluding Landowner’s units).

Currently, there are various squatters or occupiers occupying on the JV Land.

The JV Development is in line with the Tambun Indah Group’s plan to expand its property development activities particularly in Penang. It represents a strategic investment by the Company and is expected to contribute positively to the earnings as well as shareholders’ value of the Group in the medium to long term. The JV Development also represents a low entry opportunity for Tambun Indah Group in terms of upfront cash outlay, to develop a piece of prime property in Butterworth.

The JV Land is within the mature and popular Butterworth town and offers a high potential development in light of its strategic location with the federal roads and other infrastructure in place. The location is easily accessible to Raja Uda Light Industrial Park, Mak Mandin Industrial Park, Butterworth – Kulim Expressway and North-South Expressway.

The JV land is also within walking distance to Palm Villas and Seri Palma.

The population of mainland Penang is growing, partly due to migration from Penang Island because property prices are relatively cheaper in mainland Penang as compared to Penang Island and also influx of Foreign Direct Investment in industrial area in mainland Penang which create job opportunities. It is therefore expected that there will be an increase in the demand of houses in mainland Penang.