Penang Property | 14 projects approved under density guideline

Penang Property | Monday November 26, 2012

14 projects approved under density guideline

By WINNIE YEOH
winnie@thestar.com.my

THE Penang Municipal Council (MPPP) has approved 14 projects under the 87 units per 0.404ha guideline since it came into effect in June, 2010.

State Local Government and Traffic Management Committee chairman Chow Kon Yeow said stringent measures had however been imposed on developers to build the increased density units.

“The guideline is not applicable in established housing areas, World Heritage Site, the area from Tanjung Bungah Hotel to Mar Vista, along Gurney Drive, the bordering areas of Air Putih constituency and Air Itam constituency and re-zoning area.

“The floor area for the guideline is also capped at about 1,400sq ft per unit and MPPP has also imposed a price control for 25% of the units,” he said in a press conference at the City Hall in Esplanade yesterday. `

Of the 25%, Chow said developers would have to sell 5% of the units at RM200,000 per unit, 15% at RM300,000 per unit and 5% at RM400,000 per unit.

He said if a developer wished to build under the new guideline, the company would have to build an additional 30% low-cost or low medium-cost units in the same district.

“Developers will also have to submit a traffic impact assessment (TIA) report for the respective projects,” he said.

Chow added that currently 109.26ha of land on Penang island was available for the building of units under the new guideline.

He said this worked out to 8,100 units at 30 units per 0.404ha and under the new guideline, 23,490 units could be built.

Council president Datuk Patahiyah Ismail, who was also present, said there would be no capped floor plan size if developers chose to build 30 units per 0.404ha.

“With the 87 units per 0.404ha guideline, we can in a way curb super condos and the issue of expensive prices,” she said.

In recent news reports, many Penangites questioned the need for the guideline as they were concerned that higher density may lead to social and environmental problems for the existing residents.

The 14 projects which have been approved are in Jalan C.Y. Choy, Jalan Macalister, Jalan Seang Teik, Lorong Perak, Sungai Ara, Bukit Gambier (two projects), Lembah Permai, Jalan Jelutong (two projects), Jalan Paya Terubong, Jalan Perak, Jalan Tanjung Tokong and Jalan Pantai Jerejak.

Source reference link: http://thestar.com.my/metro/story.asp?file=/2012/11/26/north/12369232&sec=North

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Penang Property | 2-Storey Commercial Building For Rent

Penang Property | 2-Storey Commercial Building For Rent

Total Build Up area: 8,475 sq ft
☛ Asking rental: RM2.35 psf (negotiable).
☛ Car park: Ample of parking lots.
☛ Direction of building: Facing NW.
☛ Note: All the fittings in pictures are 'as is where is basis'.

Interior Setup:
1(a), 1(b). Equipped with three(3) meeting rooms partition with glass panel.
2(a), 2(b). Kitchenette and toilet(in excellence condition).
3(a), 3(b). Floor carpeted with offices.
4. Empty space and also offices.

Note: Potential tenant could get a copy of report by calling +6 016 451 1321 or email: Vulcan.Lau@gmail.com

Interested please contact Vulcan Lau, mobile: +6 016 451 1321 for details.

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Penang Property | Debenhams PLC UK gears up for Penang

Friday November 9, 2012

Penang Property...Debenhams gears up for Penang
By CHRISTINA CHIN
sgchris@thestar.com.my

FASHIONISTAS can look forward to the opening of Debenhams in Gurney Paragon Mall, Penang, next year.

The exciting ‘British invasion’ is scheduled for July or August and work on designing the flagship store for the northern region is already underway, said Debenhams Malaysia managing director Andy Jackson.

The focus will be on the ladies with about 60% of the merchandise comprising womenswear.

Promising “great British products at great Malaysian prices”, he said the decision to bring the brand up north was a well thought through move.

In Malaysia, Debenhams has stores in The Curve, Mutiara Damansara, and Starhill Gallery, Jalan Bukit Bintang, since 2008.

The soon-to-be-opened 18,000sq ft outlet will be Debenhams first outside of the Klang Valley.

“We’ve invested some RM4mil in this outlet and we will be employing about 30 local staff.

“Gurney Paragon will be the epicentre of shopping in Penang and the brands we carry will provide a breath of choice in quality fashion.

“Fundamentally, we realised from the onset the importance of getting the pricing right.

“Now Penangites won’t have to travel down to Kuala Lumpur to get their Debenhams fix,” he said.

He said Debenhams’ debut was timely as fashion conscious Penangites had often visited the brand’s outlets in Kuala Lumpur and asked about the possibility of a store opening here.

“We anticipate opening more stores in Malaysia such as in Johor but the Gurney Paragon outlet will be a flagship store to cater to the whole northern region,” he said.

Debenhams represents London’s most famous edgy high street fashion names alongside chains like Topshop, Dorothy Perkins, Warehouse and Marks & Spencer.

With a legacy that dates back 200 years and more than 239 stores globally, Debenhams carries a host of designer lines exclusive to the chain, namely Julien McDonald, Matthew Williamson, Henry Holland, John Rocha and Jasper Conran.

Debenhams PLC UK head of international business development John Scott who was also present, said Asia offered the brand its biggest expansion opportunity.

“Clearly with the current crippling European economic conditions, Asia is our biggest growth area.

“We are looking at more stores in Indonesia, Philippines, Vietnam and China.

“Debenhams sees itself as an ‘international retailer’ rather than a British retailer looking to spread its wings globally,” he said.

The duo were speaking at a press conference after the signing ceremony between Jackson and Hunza Properties Bhd executive chairman Datuk Khor Teng Tong recently.

In his speech, state executive councillor Chow Kon Yeow who witnessed the signing, said Debenhams’ opening marked a continuation of Penang’s rich British presence here.

“The introduction of international brands like Debenhams will surely boost the state’s tourism, retail and food sectors,” he added.

Picture below:
Top guns: Debenhams Malaysia managing director Andy Jackson speaking to the media while Scott looks on.

Source reference link: http://thestar.com.my/metro/story.asp?sec=north&file=/2012/11/9/North/12270734

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Penang Property | Higher prices with heritage status

Saturday November 3, 2012

Higher prices with heritage status

By DAVID TAN
davidtan@thestar.com.my

HERITAGE properties in Penang are now selling for RM600-RM1,200 per sq ft, depending on the historical and architectural characteristics of the property, the size and location.

Henry Butcher Malaysia (Penang) vice-president Shawn Ong says that prior to George Town's listing as a Unesco World Heritage Site (WHS) in 2008, the properties were selling from between RM300 and RM600 per sq ft.

“In view of the limited units of pre-war properties available in Penang, pre-war buildings with unique characteristics are generally attracting a lot of buying interest.

“Therefore, it is quite common for pre-war buildings available for sale being snapped up by investors, pushing up the selling price.

“The majority of buyers are Malaysians contrary to perception that more foreigners than Malaysians buy pre-war properties.

“A notable recent transaction is the sale of 30 units of pre-war shophouses in Nagore Road, George Town to investors,” he says.

According to Ong, the rentals of pre-war buildings of larger size in George Town's prime zones generally fetch RM10,000 to RM20,000 per month, compared to between RM5,000 and RM8,000 before George Town's Unesco WHS status.

“Locations such as Armenian Street, Stewart Lane, Chulia Street, Love Lane, and Muntri Street, due to their proximity to Little India and Khoo Kongsi, are among the most sought-after areas for heritage properties in George Town,” Ong adds.

The selling price of heritage properties in Penang has risen by about 10% this year compared with 2011, according to Ong.

According to Henry Butcher's Penang Real Estate Market Report, the total number of pre-war buildings within the conservation area of George Town Unesco WHS is 4,665, with 2,344 units at the core zone and 2,321 units at the buffer zone.

The core zone covers 109.4 ha bounded by the Straits of Malacca on the north-eastern tip of the island, Love Lane to the north-west, and Malay Street Ghaut and Dr Lim Chwee Leong Road to the south-west corner.

The core zone is protected by a 150-ha buffer zone bounded by Dr Lim Chwee Leong Road to the south-west and Transfer Road to the north-west.

According to PPC International Sdn Bhd director Mark Saw, the number of heritage property transactions for Penang in 2011 was 228, compared with 211 in 2010.

“Most of these properties were for double-storey pre-war houses in the north-east district of the island.

“Those with the foresight to invest in heritage properties before George Town received the WHS status would see the value of their properties increased substantially today.

“In the market presently, there are large-size heritage properties in inner George Town selling for more than RM10mil,” he says.

One such heritage building in inner George Town with a built-up and land area of 10,000 sq ft and 5,762 sq ft respectively is the No. 25 China Street, a double-storey property built in 1846 by Kapitan Chung Keng Kwee.

Malaysian-born David Wilkinson, who owns the property, says he bought the property in 2005 and spent over RM2mil to restore the building, which took about two years.

“It is the largest property on China Street as the building is equivalent to three shophouses. The property is being used as a private residence, but has the potential for commercial usage as a special heritage museum,” he says.

Another sizable heritage property in inner George Town that has seen its value rise substantially since 2008 is the row of five pre-war houses on Stewart Lane now collectively known as Coffee Atelier, comprising a coffee house cum restaurant, museum, art gallery and four hotel rooms owned by Stefan Gehrig and his wife Lorina.

Stefan says he purchased the five properties, which had a total built-up area of 8,160 sq ft and land area of 4,800 sq ft, for RM3.5mil in 2010.

He adds that he had recently received an offer of RM6mil for the properties.

“The five unique heritage properties were built in 1927 and were called shophouses because the original inhabitants carried out their trades on the ground floor, and lived with their families on the upper floors.

“One of these shophouses was once a coffee merchant's workshop in 1988.

“The name Coffee Atelier' derives from this element of the building's history and celebrates the memory of this artisanal trade from a bygone era,” he says.

Pictures below:
The Coffee Atelier, comprising 5 prewar buildings at Stewart Lane.

Stefan and Lorina co-own the Coffee Atelier.

Source reference link: http://biz.thestar.com.my/news/story.asp?file=/2012/11/3/business/12262229&sec=business

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Penang Property | RM46mil allocated to four restoration projects inPenang

Saturday November 3, 2012

RM46mil allocated to four restoration projects in Penang
By DAVID TAN
davidtan@thestar.com.my

SINCE George Town received Unesco World Heritage Site (WHS) status in 2008, over RM46.3mil has been allocated to restoration work in four major heritage projects.

The most well-known of these heritage properties restored are the Choong Lye Hock mansion and the Loke Thye Kee building.

The other two restoration projects are by Asian Global Business (AGB) and Public Packages Holdings Bhd involving commercial offices and warehouses built in the early 20th century at Weld Quay and Church Street Ghaut.

The AGB Group is restoring two early 20th century commercial and warehouse properties to be an integrated RM220mil Rice Miller Hotel and Residences, which is an in-fill development project.

An in-fill development involves constructing a project from scratch.

The cost of restoring a heritage project depends on the quality of finishing used and normally ranges between RM300 and RM400 per sq ft.

Sometimes a company spends more for restoration because of the condition and age of the property.

A prime heritage property in George Town can fetch rental of between RM5 and RM10 per sq ft, which means that a 2,000 sq ft heritage property strategically located can generate a rental of RM10,000 to RM20,000 a month, according to Henry Butcher Malaysia (Penang) vice-president Shawn Ong.

The Choong Lye Hock mansion restoration project, located on 48,943 sq ft at Macalister Road, was undertaken by local businessman Datuk Sean H'ng and his wife Datin Karen H'ng.

The Choong Lye Hock mansion belonged to a tycoon and philanthropist, who bought the property in the late-1890s.

Lye Hock is the father of local millionaire Ch'ng Eng Hye and the grandfather of badminton legend Datuk Eddy Choong.

The restored building, now known as Macalister Mansion (MM), has eight hotel rooms, two restaurants called The Dining Room and The Living Room, and two bars called the Bagan Bar and The Den.

Macalister Mansion opened its doors to the public in April 2012.

According to MM public relations director Josephine Leong, the planning and the restoration work for the 17,286 sq ft mansion took about 20 months.

“This is corporate responsibility initiative project to demonstrate that old colonial buildings can be regenerated into useful and practical spaces with a contemporary feel.

“Some eight months were spent on planning the design with a Singapore-based interior design company, Ministry of Design (MOD) to produce stunning interior designs.

“It took us 12 months to restore and reinforce the original columns, staircases and archways, original brick walls and wall cornices.

Leong says the Macalister Mansion project was more about a labour of love.

“The owners want to raise the bar in the boutique hotel scene in Penang. As global travellers, they would like to bring back that differentiated hotel experience where guests get to enjoy a more personalised and intimate level of service within luxurious surroundings,” Leong adds.

Raine & Horne Malaysia director Michael Geh says about RM2mil or about RM630 per sq ft was spent on restoring Loke Thye Kee, known as the oldest restaurant in Penang, at Burmah Road.

According to Geh, a local investment company, Loke Thye Kee.com, set up by Singaporean investors, bought the double-storey property from a local businessman some about six years ago.

“About two years, which included also the time to obtain the green light from the local authorities for renovation, was spent on restoring the building with approximately 3,200sq ft of built-up area.

“It has been leased to a local company called Food People Sdn Bhd, which plans to set up soon a Hainanese restaurant, and food and beverage outlets,” he says.

Known as the House of Happiness in Hainanese, the Loke Thye Kee restaurant was established by brothers Loy Kok Boon and Loy Kok Dai, who leased the building from local businessman and philanthropist Khoo Sian Ewe.

Loke Thye Kee serves traditional Hainanese and Western cuisine such as curry kapitan, choon piah, and chicken chop.

AGB Group spent RM21.5mil or RM860 per sq ft to restore two heritage commercial and warehouse properties built in the early 20th century at Weld Quay.

AGB chief executive officer Dr Noraini Abdullah says the restoration turned out to be costly because a lot of work had to be done for strengthening the physical buildings, as their conditions were bad.

“About RM16mil was spent for restoring and reinforcing the physical infrastructure of the warehouse building, which serves as the event hall of the Rice Miller Hotel.

“Another RM5.5mil was spent in restoring a 5,000 sq ft colonial commercial building that will serve as the restaurant for the Rice Miller Hotel,” she adds.

The Rice Miller Hotel and Residences project is scheduled for completion next August and scheduled for opening in Dec 2013.

It will comprise 48 hotel suites, 99 city residences, which range between 800 and 2,500 sq ft in built-up, 23 retail lots of 600 sq ft, and two blocks of five-storey office buildings.

“In the past 12 months, we have sold 50% of the retail lots and city residences. Most of the buyers comprise Penangites and investors from Ipoh and Kuala Lumpur,” she adds.

Next to the Rice Miller Hotel and Residences project, Public Packages Holdings Bhd (PPHB) is restoring two heritage double-storey commercial properties with over 39,632 sq ft to be integrated into a RM50mil in-fill heritage hotel cum commercial project located at Church Street Ghaut, off Beach Street, which is popularly known as the central banking district.

PPHB hotel project manager Tony Koay says the group would spend RM15.8mil or RM400 per sq ft to restore the two heritage properties with fittings.

“One of the heritage commercial building with 11,000sq ft will be restored as part of the in-fill heritage hotel.

“The other heritage property with 28,632sq ft will be restored for commercial and office usage,” he says.

Koay says the advantage of carrying out infill development work for the heritage hotel project was that one could maximise the interior of the buildings to suit the needs of modern business usage.

The cost per sq ft to develop a heritage hotel from scratch with furnishings is about RM1,000 per sq ft, says Koay.

“A problem with restoring a heritage building for hotel usage is that the interior of such heritage buildings restricts the utilisation of space,” he says.

Koay adds that the in-fill heritage hotel would have over 150,000 sq ft of built-up area, 150 rooms, a business centre, meeting rooms, two-level of basement car-park, and retail shops on the ground floor.

“The architectural style for the hotel follows the design of late 19th and early 20th century port offices and warehouse buildings in George Town.

“We are targeting the upmarket tourists,” Koay says.

Picture below:
The restored Macalister Mansion has 8 hotel rooms, two restaurants and two bars.

Source reference link: http://biz.thestar.com.my/news/story.asp?file=/2012/11/3/business/12262216&sec=business

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