City&Country: Briefs

Jetson buys land in Penang
Kumpulan Jetson Bhd, through its 51%-owned subsidiary Jetson Development Sdn Bhd, has acquired three tracts of land in Penang from Malaysia Building Society Bhd for RM14 million. It announced on Jan 18 that the tracts, measuring 21,671, 23,277, and 3,346 sq ft, are situated in George Town. Plans are for high-end property development with an estimated GDV of RM93 million. The acquisition is in line with the company’s focus on boutique developments.

The company believes the strategic location of the properties, with the proposed innovative design and concept which offers exclusivity, will appeal to both local and international prospective purchasers.

Property transactions to exceed RM100 billion
The value of property transactions in Malaysia for 2011 is expected to exceed RM100 billion on the back of the recovery of the economy. Valuation and Property Services Department director-general Datuk Abdullah Thalith Md Thani says 342,179 transactions worth RM96.77 billion were recorded between January and November 2010, an increase of 12.2% y-o-y. Speaking at the 4th Malaysia Property Summit on Jan 18, he said in the first six months of 2010, the number of transactions recorded double digit growth of 17% while the following five months grew at a slower pace of 7%.

S P Setia: New MoH complex design ready
S P Setia Bhd has finalised the design and costing for the proposed development of the new integrated health and research complex for the Ministry of Health (MoH) in Setia Alam, Selangor. The company said on Jan 17 that its associate Sentosa Jitra Sdn Bhd (SJSB) is now ready to commence negotiations with the Public Private Partnership Unit (UKAS) in the Prime Minister’s Department and the MoH over the terms for the proposed complex to be located on approximately 55.33 acres of land at Setia Alam via a land swap for 40.22 acres of government in Jalan Bangsar, Kuala Lumpur.

S P Setia says UKAS had issued a letter on Sept 24, 2010, informing it about the government’s approval-in-principle for SJSB to enter into negotiations with UKAS and the MoH. The developer is also drawing up the master plan to redevelop the MoH land. MoH will also have the opportunity to participate in the redevelopment of the MOH Land through its share of 20% of the net profit from the development.

Maybank launches ringgit-based mortgage facility for UK property
Malayan Banking Bhd (Maybank) expects a take-up of RM60 million within the next six months for its newly-launched ringgit mortgage facility for Malaysians who want to purchase property in London. Malaysians would be able to borrow in ringgit to purchase property in London with a loan taken in Malaysia.

The bank’s Overseas Mortgage Loan Scheme, launched on Jan 13, will finance completed residential and commercial properties under construction in London’s Zones 1 to 3, in prime locations such as the City of London, Westminster, Knightsbridge, Kensington and Chelsea. “Key features include repayment in ringgit, high margin of financing up to 85%, flexible repayment and long tenure of up to 30 years or 70 years of age whichever is earlier,” the bank says.

At present, Malaysians purchasing properties in London have to obtain financing from UK-based banks and pay the monthly instalments in pound sterling, which exposes them to foreign currency exchange fluctuations.

This article appeared in City & Country, the property pullout of The Edge Malaysia, Issue 842, Jan 24-30, 2011

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