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City&Country: Briefs

Singapore, HK provide models for Penang Housing Board
Penang is setting up its own Penang Housing Board (PHB), modelled after the successful Singapore Housing Development Board (HDB) and Hong Kong’s Housing Authority (HKHA) in a long-term bid to streamline the development of housing in the state.

With land for development in short supply on the island, affordable housing has become a scarce commodity. Developers have preferred to focus on luxury homes and super condominiums to leverage the high land costs.

The proposed housing board is envisaged to deal with all issues related to government housing and also play an active role in private housing.

Sunrise’s growing earnings
Sunrise Bhd is expected to launch at least four major projects with a total gross development value (GDV) of RM2.7 billion next year. It anticipates better results for FY2011 ending June 30, given its large unbilled sales of RM1.2 billion.

Executive chairman Datuk Tong Kooi Ong said mixed-use development MK20 will be launched in Mont’Kiara in the middle of next year and have a GDV of about RM1 billion. The developer will also likely unveil office building Menara Solaris in the city centre early next year and is deliberating whether to sell the RM480 million project en bloc or on the market.

MK Land clinches RM4 bil project in Bangalore
MK Land Holdings Bhd has sealed an agreement with Embassy Group of India to develop a RM4 billion “affordable homes” project in north Bangalore, India.

The development will be carried out by MK Embassy Land Sdn Bhd, which is a joint venture between MK Land (47.5%), Star Dreams Pte Ltd (47.5%) — a subsidiary of Embassy Group — and MKN Embassy Development Sdn Bhd (5%) — a subsidiary of Emkay Group.

Emkay Group is the private vehicle of Tan Sri Mustapha Kamal Abu Bakar, who is the major shareholder of MK Land.

The 185-acre development will comprise 14,400 residential units and two million square feet of commercial space. Three types of affordable residential units will be offered at prices ranging from RM115,000 to RM175,000 per unit.

Southern Acids to unlock value of land in Kota Kemuning
Southern Acids (M) Bhd is set to unlock the value of its 644.49 acres bordering Kota Kemuning, Shah Alam.

“There are plans to unlock the value but the board has not decided what to do there,” said chairman Tan Sri Low Boon Eng on Oct 28.

While there is “no shortage of suitors” for the land — where Thangamallay Estate is situated — Low stressed that the board is evaluating all available options before making any decision in the next three to six months.

A market observer says the freehold land is worth more than RM20 psf, which gives the land an estimated value of RM561 million — much more than Southern Acids’ market capitalisation of RM376.57 million.

This article appeared in City & Country, the property pullout of The Edge Malaysia, Issue 831, Nov 8-14, 2010

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