GEORGE TOWN: Hunza Properties Bhd will pay out RM10 million compensation to about 100 buyers of units at its Gurney Paragon condominium due to late delivery.
The project located in Gurney Drive in Penang has a gross development value (GDV) of RM480 million and is part of the 4ha Gurney Paragon, a mixed development project comprising a shopping mall and the condominium. It is built around the former St Joseph’s Novitiate which will be converted into St Jo’s, offering boutiques and restaurants.
The condo comprises 220 units in two blocks. The 100-odd buyers had signed the sales and purchase agreements in stages from June 2007 when the project was launched. Completion was supposed to have been by June 2010.
Datuk Khor Teng Tong, group executive chairman, said the completion was delayed due to reasons beyond Hunza’s control. A stop work order was issued by the Penang Island Municipal Council (MPPP) when an access road next to the project caved in.
The certificate of occupation was finally obtained in June this year. At a recent press briefing to announce Hunza’s results for FY11 ending June 30, Khor said more than 70% of the 220 units have been taken up, half by foreigners mostly from Singapore, Hong Kong, Shanghai and Indonesia.
Khor said the first phase of the retail mall consisting of 111,000 sq ft, including the refurbished St Joseph’s Novitiate, will be completed by year-end. Phase 2, covering 600,000 sq ft, will be completed by end-2012.The mall has a GDV of RM450 million.
Khor said about 30% of the mall’s 700,000 sq ft net lettable area has been taken up and includes established tenants who have operations in the Klang Valley. They include restaurants like TGI Friday’s, Italiannies Pasta, Pizza & Vino, Coffee Bean and Tea Leaf, Pacific Coffee and Hokkaido Ichiba and TGV cinemas, multi-brand Valiram Group and a foreign department store taking up 85,000 sq ft. Gurney Paragon will also have 1,800 parking bays.
Cheng Jih Min, Gurney Paragon chief operating officer (retail division), said the mall will complement the neighbouring Gurney Plaza, a popular shopping haunt for Penangites and visitors alike. Cheng is hopeful plans by the authorities to turn Gurney Drive and Kelawai Road into one way roads will take off to ease the traffic congestion in the area, especially during weekends and public holidays,
The group recorded RM241.2 million in revenue and RM64 million in net profit for FY11 compared with RM248.2 million and RM50.9 million in 2010. Khor said the increase in net profit was mainly due to gains on a revaluation of investment properties.
Hunza has declared a special interim single-tier dividend of 2.5 sen per share and in addition the board is also proposing a final single-tier dividend of 5.6 sen per share.
This article appeared on the Property page, The Edge Financial Daily, September 9, 2011.