Monday, 29 Oct 2008

In these troubling economic times, developers are now, more than ever, on the lookout for strategic parcels of land that can minimise risk and holding cost while delivering maximum returns.

That’s why they have set their sights on land in prime, established locations where demand is buoyant, sites along major thoroughfares that provide convenient access, as well as partially completed projects that can put them on the fast-track to completion and profits.

Such opportunities exist in the books of national asset management company Pengurusan Danaharta Nasional Bhd.

Set up to help the country’s financial institutions out of the 1997 Asian financial crisis by taking over the collaterals attached to their non- performing loans, the agency still has in its portfolio some 17 sites spread throughout the country worth over RM124 million that need to be examined for their potentials.

These are now being managed and marketed by Prokhas Sdn Bhd, a subsidiary of the Minister of Finance Inc.

Whatever the intention – be it a simple housing scheme, an integrated township, a seafront resort, or a commercial venture – Prokhas has something that just might suit a developer’s ambition and budget.

Fast-tracking in Negri Sembilan For budding developers with time and expertise on their side but without a sizeable financial treasure chest at their disposal, they could look at a project in Juesseh, Negri Sembilan – it is an example of an opportunity to take over and complete a project at minimal cost.

Located in Taman Kariah Sri Akrab is a partially completed residential scheme comprising 24 terrace houses, 16 semi-detached units, 12 terraced shop lots and a 19,551sq ft petrol station site (referred to by Prokhas as DEV-0101).

With the residential and commercial structures already erected, the successful purchaser can immediately commence work to complete the venture as soon as its Indicative Value (IV) of RM1.71 million – or the nearest offer accepted by Prokhas – has been paid.

Only a comparatively marginal sum would be needed to reactivate, market and complete the project.

The 24 terrace lots each have been planned with typical plot dimensions of 20ft by 65ft, while the semidees are 40ft by 80ft and the shop lots, 22ft by 70ft. Including the petrol station site, the units collectively give rise to a nett land area of 1.23 acres.

The gems of Johor On the same "fast-tracking" note, investors looking to capitalise on plans to transform part of the southern state into Iskandar Malaysia should take a look at an 18.28-acre freehold site fronting the Johor Baru- Simpang Renggam main road (DEV-C101).

Made up of four contiguous plots estimated by a professional valuer to be worth RM17 million (or RM21.30psf), approval in principle has already been obtained to build 40 shop lots on the property.

Another piece of land with potential is a 15.98-acre freehold tract in a part of Plentong some 22km from JB city where the up-and- coming coastal highway will cut through (COMMP2010). Located along the southern side of the Pasir Gudang Highway and within Bandar Baru Kota Puteri, it had been granted an approval in principle for an integrated commercial development comprising a four-level shopping centre with four-level car-park, a 16-storey hotel, 16-storey serviced apartment block and a 16-storey office tower.

The successful purchaser could either submit plans based on this, or re-submit a fresh proposal.

Its price of RM12.39 million equates to a value of RM18psf, which is comparable to the RM20psf to RM30psf that commercial development land in areas such as Taman Rinting and Desa Tebrau had previously been sold for.

Such an indicative value would be able to support the building of highrise condominiums priced sensitively to suit today’s climes and to woo participants of the Malaysia My Second Home programme.

Alternatively, the site could accommodate a hypermarket or a retail power centre. Resort action North in Perak, there is a leasehold property that provides a way to get in on the resort development fast track.

The site (DEV-3036) comprises 307.3 acres situated in Behrang and between the towns of Tanjung Malim and Slim River.

Previously, it was planned to accommodate leisure and residential elements, which is why it now features an uncompleted clubhouse and sports complex, an equestrian site, a 27-hole golf course and 63 resort bungalow lots, of which 10 have already been built upon with showhouses. With a concept centered on healthy living or health tourism, the property could be revived to give value to its asking price of RM15.26 million, which equates to RM1.14psf.

Alternatively, the land could also be converted into an agricultural homestead consisting of hobby farms that can be sold for upwards of RM200,000 an acre or RM5psf.

Such a plan would suit gentlemen farmers and urban executives wanting a back-to-nature weekend retreat, which could be gaining popularity as rising inflation and high food prices coax families to plant their own food.

These are just some of the properties that can be found in Danaharta’s development land portfolio. To inspect the whole list, surf to www.prokhas.com.my. The website also contains an Offer to Purchase form that prospective purchasers can use to bid for their properties.

They will have to complete the form, attached with it a refundable three per cent earnest deposit, and deposit the offer in a specified box in the office of Prokhas Sdn Bhd.