theSun Property March 2016

> Spotlight on Pengerang – once considered

ulu, nowa bustling hotspot

our series under the Iskandar

Development, thisweekwe put

the spotlight on Pengerang,

located in the fifth sector under

the Iskandar Development Region,

also known as the EasternGate

Development Zone, covering the

Pasir Gudang Port and industrial

zone, Tanjung Langsat port and

technology park, plus theKim-Kim

regional distribution centre.

Situatedwithin the zone is the

Pengerang Integrated Petroleum

Complex, themega project reported

to cost some RM60 billion, which is

also expected to boost demand for

properties in and around that area.

Reports claim that this project

which is aimed at attracting global

petroleum investors to become

Asia’s topmost petrochemical hub

will turn Pengerang into a boom

town. So, property investors and

purchasers, start doing your

homework if you have not already.

POPULATIONMAGNET

It is beyond doubt that good land

DNA is

sine quanon

when buying

property, especially as an

investment. Thus, we highlight a

couple of “elements” that will help

put this once “sleepy coastal town in

The lureof

Iskandar

PART3

Email your feedback and

queries to: propertyqs@

thesundaily.com

a far-flung location” on to the global

map. Pengerang and its surrounding

areas are rapidly gaining popularity

and a step towards changing the

economic scene in the area. Here are

somemega projects that help put

Pengerang into the spotlight:

A] One of the reasons for the rise

of Pengerang is themega project

within the Pengerang Integrated

PetroleumComplex (PIPC) called

the

Refinery and Petrochemical

IntegratedDevelopment (Rapid)

project by Petronas

, reported to

cover some 2,000ha of land. The

project is a key element in the

nation’s EconomicTransformation

Plan (ETP). Besides raising the

quality of life in that area, the project

is also expected to create thousands

of jobs and boost income levels in

the surrounding.

B] According to reports, Phase 1

consisting of the RM5 billion

Pengerang Independent Deep

Water PetroleumTerminal

(PIDPT)

, situatedwithin the PIPC,

is completed andmany vessels have

since been using the terminal.

Moreover, a refinery to support the

Rapid project will create evenmore

Road

Railway

Port

Major Town

QUICK RULE OF THUMB

FROM THE MENTIONED

BOOK

i) Gross development value

(GDV) is the total sale of the

entire development (as an

example).

ii) Total construction costs

include building construction

costs, infrastructure and

contingency costs. These

should total to 40% to 50%

of GDV.

iii) Land cost should come up to

20% to 30% of the GDV.

iv) Profit can be calculated if you

minus the costs (ii and iii) from

GDV (i).

PENGERANG:

STRATEGIC LOCATION

Access to existing major

international shipping lanes

– Middle East, Singapore

and China;

Close proximity to an

existing major trading hub;

Adjacent to Singapore;

Deep water of 24m

enables

VLCCs and ULCCs to use

port facilities;

Very few environmentally

sensitive areas

(ESAs) which

are easily preserved;

Low negative socioeconomic

impact;

Relatively unpopulated

leading to minimal

population relocation;

Safe and sheltered harbour;

No breakwater required

with sufficient sea-going

passage for VLCCs and

ULCCs;

Availability of sufficient

development land; and

A single candidate plot in

excess of 20,000 acres.

Senai Airport

JOHOR

Johor Bahru

Johor

Port

PTP

Jurong

Changi

Pasir Panjang

Pengerang

SINGAPORE

PHOTO: WWW.MPRC.GOV.MY

Pengerang Integrated PetroleumComplex PIPC

PHOTO: WWW.CURRENTBUZZ.MY.

Judgment for

abandoned

GentingValleypurchasers group

the

Sun

inDecember 2013, had

examined and reported on the

travails of many local and foreign

purchasers who had invested in

Genting Valley bungalowplots in

Batang Kali, Selangor.

PURCHASERS’ PLIGHT

This development project was

launched in the year 2000 by Jade

San Realty Sdn Bhd, but later

“abandoned” leaving the investors/

plot owners with serious

problems. Despite non-receipt of

the property, they had to continue

servicing their loan instalments,

besides

losing their future

retirement homes

and

experience other related tensions.

Lengthy, costly and complex

legal proceedings ensued. Many

individual purchasers felt

frustrated by “solidwalls” and the

“apathy of the system”.

Aggravatingmatters, the

liquidators brought in to “solve”

the case, seemed to have other

priorities. Over the years, pleas

and proposals for rehabilitation

encountered “deaf ears”.

DETERMINED FIGHT

Consequently, around 600

determinedmembers formed

“The Genting Valley Purchasers

Group” combining their efforts

and resources to grapplewith the

issues and process. However,

submissions to the court for

removal of the liquidators did not

succeed. Instead, inOctober 2015,

theHigh Court of Malaya found in

favour of the liquidators, awarding

themRM45,000 and the chargee

bank RM3,000

APPEAL

Fearing that theymight lose both

their plots andmoney, the

purchasers group filed an appeal at

the Appellate Court. During the

hearing onMarch

22, 2016 the panel

of three judges

found sufficient

evidence to

justify the

removal of the

liquidators,

besides awarding

costs. This

judgment “finally

brings some

shining light at the

end of a long

miserable tunnel”

said a purchaser.

The result was greetedwith

simultaneous relief and jubilation

by around 90 purchasers (

pix

) who

had sat through the proceedings in

the public gallery. Several

commended

theSun

for the initial

reportagewhich provided “a

positive impact by highlighting the

issues involved and the

purchasers’ sad plight to its readers

andwider public”.

residential, industrial, commercial

and agricultural land.

1] TamanDesaruUtama andTaman

DesaruMutiara

2] Sebana Cove

3] TamanRamunia Indah andTeluk

Ramunia

4] Sungai Rengit

5] Lepau

6] Tanjung Sepang

7] Batu Buloh

8] Pantai Timur

9] Bukit Gelugor

10] Pulau Jenuang

GOOD LANDDNA

According to the author of

Make

BigMoney via Land

and property

expert Tan Hwa Chuan’s good

land DNA checklist, Pengerang

ticks all the boxes. Moreover, it is

situated right next to Singapore,

where property prices are way

above ours. Nowwith the amount

of attractions over on our side of

the crossover, the fact that

Pengerang is situated right next to

neighbouring Singapore, makes it

even more appealing.

IfMalaysia plays its cards right

and keeps to deadlines and

commitments, maintains good ties

with our neighbours and sees to

global standards of upkeep in all the

above-mentioned projects, why

wouldn’t IskandarMalaysia be

anything but a jewel in the south?

jobs, thus

enhance

property

values and increase

the quality of life for the people in

the area.

C] Complementing the Rapid

refinery is the 1,760-acre

Pengerang

PetroleumandMaritime

Industrial Park

, which is already in

the pipeline.

i-Parc

Tanjung Pelepas

said to serve both theMalaysian and

Singaporean small andmedium

enterprises (SMEs) andmulti-

national corporations (MNCs),

further creatingmore jobs, thus

raising economic levels and the

quality of life in and around that

area.

E] The

JohorHalal Park in

Pasir Gudang

is a RM1.5 billion

project that hopes to drawmore

investors to the area.

PROPERTY IN THE AREA

Asmore andmore jobs are being

created and the laid-back scene in

Pengerang goes through change,

the idyllic slow-paced kampung life

in that part of the country takes a

turn. Once only cycling andmotor

racing enthusiasts visited the nearby

Pasir Gudang area andmight have

stopped over this sleepy hollow,

now, the population is slowly and

steadily growing. That said, here are

a fewareas in and around Pengerang

offering accommodation, aswell as

Road

Railway

Port

ajor To n

theSun ON FRIDAY

MARCH 25, 2016