Aspen Vision City: 1st Phase Kick-Started

I received an invitation to the launch of the 1st phase of Aspen Vision City in early Feb15.  However, I didn't go as I know that I can't afford it and I didn't have time as well.

The first phase "Verve" consists of about 451 units of 3-4 storey shop offices priced from RM1.2mil. I would say that this price is quite attractive.

It is a gated & guarded commercial precinct and owner needs to pay monthly maintenance fees. So does it mean that owners are not allowed to do extension or change the colour of the buildings? I think Verve will have its own regulation for this.

The location of Verve is good as it is sandwiched between the future IKEA and KDU University, and next to proposed International School and Financial Hub.

It is also the only landed property you can get in Aspen Vision City as future development are all high rise buildings.

If you go to Batu Kawan now, you will find that it is still a super "ulu" place with bushes and empty roads with cow dung. Can you imagine that it will turn into a modern city as illustrated in artist's impression below in the future?

Every township starts from scratch. IKEA has brought life to Mutiara Damansara, Damansara Utama and even Kota Damansara. I believe that it will do the same to Batu Kawan and its surrounding area.

Besides, Malton also owns a big piece of land opposite Aspen Vision City. Can we see another shopping mall like KL Pavillion here?

Anyway, the development of Batu Kawan is still in its "fetal" stage. There is a possibility that things can still go wrong. What if IKEA suddenly cancel its plan due to sudden economy crisis?

Ivory which initially owns 49% in Aspen Vision Land which holds 80% of this 245-acre Aspen Vision City, has just sold off all its stake in Jan15 for RM55mil. Ivory will gain about RM35mil from this divestment. The gain is not bad indeed as no single piling has been done for this project yet.

Ivory said that it will concentrate on Penang island and Johor's projects that can generate returns over a shorter gestation period.

Not patient enough?

Earlier, Ivory has also disposed its land in Penang island for RM150mil and entered into a JV to develop 7.1 acres land in Johor Bahru with a potential GDV of RM2bil.

It's still early to say that Ivory has made a wrong decision in divesting its stake in Batu Kawan. Perhaps it is in a dire need to reduce its gearing.

Overall, I think Batu Kawan is an exciting development, but it may take a long time to see its result.

From the first pic here, there seems to be a proposed access/interchange with PLUS highway from the middle part of Batu Kawan.

For me, it's a nonsense to build a third access to Batu Kawan from PLUS highway to let PLUS collect toll fees. The new road should fly over the highway and connect to federal/state road.

If this is the case, then the new access road will link directly to EcoWorld's Eco Meadows!

Batu Kawan Lifted To New High By IKEA

Finally... Penangites' dream comes true. 

After years of "rumour", IKEA is edging closer to open its first store outside Klang Valley in Batu Kawan.

Just in this morning, Penang CM Mr LGE has announced in a press conference that the state government and Penang Development Corporation (PDC) will sell a piece of 245-acre land in Batu Kawan to a joint venture company Aspen Vision Land Sdn Bhd-Ikano Pte Ltd for RM483.9mil.

Ikano owns & operates IKEA franchises in Malaysia, Singapore & Thailand, while Aspen Vision Land is a 51% subsidiary of Aspen Group & 49% associate company of Ivory Properties Group. Thus, Ivory has gained an indirect access to Batu Kawan development.

Aspen Group seems to be a new property developer with a few upcoming condo projects in Penang.

       Upcoming condo in Penang by Aspen Group

The 245-acre development planned in Batu Kawan will include:

• 30 acres for IKEA store and phase 1 shopping mall
• 45 acres for phase 2 shopping mall
• 170 acres for mixed development

If not mistaken, IKEA & Ikano Power Center in Mutiara Damansara measure about 13 acres.

The whole development is expected to be completed in 10 years but IKEA store is to be completed in 5 years or sooner.

       IKEA Batu Kawan - at southern part?

Of course this is the best news for Batu Kawan so far, compared to other earlier investment like Honda, Premium Outlet, KDU & University of Hull.

While property may start to cool down in the country, I don't think this is the case for Seberang Perai, especially SPT & SPS. The mixed development by Aspen-Ikano will surely sell like hot cakes.

Direct beneficiaries of increased property demand in Batu Kawan are GOB, Ivory, Malton & Paramount, who already have lands in this area. Other surrounding listed property developers include Tambun Indah, Ecoworld, Mahsing & IJM Land.

It will not be a surprise when the news of other developers acquiring land within or nearby Batu Kawan start to flow in later.

Now people may start to imagine Batu Kawan to be like Damansara.

The Amazing Penang World City

The previous article stating that Penang World City is probably a leasehold project (here) is not correct. It is actually freehold with its first residential project, Bay Residences, launched earlier this year.

Enjoy the amazing artist impression of Penang World City. 

  

        Strategic location

        Bay Residence launched

Penang World City - Leasehold!

After Queensbay, The Light, Straits Quay & Southbay, there will be another luxury water-front project in the east coast of Penang island - Penang World City. This name does not create a "wow" compared to the others. "Ivory Coast" should be a good name but unfortunately, Didier Drogba's country has already claimed this name...

     Penang World City masterplan

The total 102.56 acres (41.5ha) of land in which 35 acres will be reclaimed land, is located at Bayan Mutiara, along the Tun Dato Lim Chong Eu Expressway just south of Penang bridge. It will be jointly developed by Ivory and Dijaya in a 51:49 joint venture.

The RM10 billion Penang World City is a mixed residential and commercial development. Construction is scheduled to commence in year 2012 and the overall project is estimated to be completed in 8 years.

      Luxury Villas - only for the rich

The existing land, which is also reclaimed land, was sold to Ivory in an open tender earlier this year (July 25) at a price of RM240 per square foot. This will generate RM1.07 billion for the Penang government. Ivory need to pay Penang government this sum of money within 5 years.

Ivory has proposed rights issue 1:1 with free warrant and later 1 bonus share for every 4 existing shares to raise fund for the projects. This means that Ivory's outstanding shares will balloon to 418.5 million from current 186 million after the execution.

The Penang World City site which is located between the 2 bridges, close to Bayan Lepas FTZ, Penang International Airport and Georgetown,  is considered a strategic super prime land. It will house luxury high-rise and medium rise condominiums, water villas, grade A office towers, retail spaces, shopping malls, hotels and perhaps a medical specialist center.

      Luxury condos & office blocks

Interestingly, Penang World City will directly compete with The Light and Queensbay which are located close to each other. The Light's progress looks promising while Queensbay seems to stop since the completion of BayStar condominium in 1H 2010. 

In May 2011, the original developer of the Queensbay, CP Land, has sold 40ha of land in Queensbay at RM420 psf to Asia Green Development. A year earlier, CP Land has sold Penang largest Queensbay Shopping Mall to CapitaMalls Asia. 

      Queensbay's previous plan is going into the drain

It seems like Ivory gets a good deal by acquiring the land at RM240psf at the same time, which is almost 50% cheaper than the Queensbay. However, the land in Bayan Mutiara is leasehold. Asia Green, who has a few small scale residential development in the island and Butterworth area, may not be a well-known developer in Penang to most Penangites. I wish they can come out with interesting projects to compete with the others.

      Location of Penang World City

     The Light (right) & Penang World City (left)

For Ivory, their recent projects and reputation are not that good. Can partnership with Dijaya help to increase the success rate of Penang World City?

The general election is approaching. If, if BN regain control in Penang, will Penang World City experience the same fate as Penang Global City Center? Anyway, both the names carry the same meaning.

Who Own Aston Villa?

 

When the housing project of "Aston Villa" was launched around 2009 in Bukit Mertajam, a sales gallery with a huge word of "IVORY" was set up on the site. Initially the take up rate was quite promising. 

Aston Villa (not English football club) is a luxury residential project with 3-storey terrace and semi-detached houses with a big land and built-up area. It also contains a row of 4-storey shop offices, and a proposed alfresco F&B outlets space as future development. Its initial price for 3-storey terrace is around RM470,000 about 2 years ago and now it is selling at RM550,000. The semi-D goes above RM800,000 each.

    Aston Villa

From my observation, the construction seems to be in a tortoise pace until recently in 2011, the pace only starts to pick up. I notice that not only Ivory is involved, Dijaya is also the developer of this project, and New Bob Realty is busy selling the remaining units. You can see Aston Villa in Ivory and Dijaya websites.

From the promotion flyer of Aston Villa, it is printed that it is a project by Dijaya, Ivory is the turnkey developer and New Bob is the marketing agent. It just gives me an impression that Dijaya and Ivory do not take this project seriously...

Anyway, is it a good project? Aston Villa is located at the heart of Bukit Mertajam town. If you don't mind the air and noise pollution of a city center, then staying here is quite convenient. However, there is a trend that more and more young people are moving out from the city center to new township at the periphery such as Alma, Bukit Minyak, Juru etc. The streets in BM old town has been dominated by foreign workers especially in weekends and public holidays.

     Retail space

There is a shopping mall BM Plaza adjacent to Aston Villa, which is used as a selling point for Aston Villa. This mall is quickly run out of favour and has been a heaven for foreign workers, especially after the opening of Seberang Perai City featuring Jusco at Bandar Perda. GSC cinema and McDonalds in BM Plaza closed down long ago. Now its anchor tenant The Store supermarket will also leave soon, followed by a few tenants. The buses in the bus terminal there keep on pumping thick black exhaust smoke into the air.

However, if the developer transform this area into an exclusive area and attracts major franchises to its commercial area, Aston Villa could still be a thriving place. But who will do it?

Bayan Mutiara: Ivory vs SP Setia

Ivory's share surged last week as Penang Development Corporation is going to announce Bayan Mutiara 24.8ha land award in Penang south-east coast this week. There are only 2 bidders, which are Ivory and SP Setia.

Last week, Ivory's share price rose almost 20% but SP Setia's share price fell almost 3%. Seems like the result is already known???

Pros for Ivory:

• Penang base developer
• "Reported" to have submitted a higher bid of RM200psf (rumour?)
• SP Setia just rewarded the sPICE project in January. Is it possible to get another in a short period of time?
• Ivory's share price up last week, why not SP Setia's?

Cons for Ivory:

• SP Setia is best developer in the country
• SP Setia still has no development in the hot south east coast
• Ivory's recent Penang Time Square is a failure (I think)

Both are good companies, way better than those RM1 "empty" companies which used to get this kind of project  in the past. Both have the ability to come out with an impressive development. So I think the higher bidder will get it (Penang needs money!).

P/S: stock alert on SPSETIA-WB