RM1tril Carey Island port-industrial city in the works
Following Northport and Westport, the next big project is Carey Island, a massive port-industrial city with infrastructure investments of more than RM200 billion covering an area of over 100 sq km. This giant new port will be able to handle more cargo than the two existing ports combined. The 20-year project will comprise the development of an integrated port and related infrastructure, industrial parks and free trade zones, commercial and residential buildings. Once all three phases of development are completed, the total GDV could exceed RM1 trillion. Sime Darby will be part of the mammoth project, as it owns most of Carey Island. Another deep-sea port is needed as Port Klang is very congested and reaching maximum capacity now. The port within the project is envisaged to have an annual capacity to handle 30 million TEUs (twenty-foot equivalent unit) of container cargo. Last year, Port Klang – the world’s 12th busiest container port – handled container cargo totalling 13.2 million TEUs. In comparison, the Port of Singapore handled 30.9 million TEUs in 2015. The proposed port-city would also provide maritime services that include bunkering, ship repairing and maintenance. It will cater for container ships, bulk and liquid carriers, as well as vessels carrying grains, minerals and vehicles. (The Star Online)
KIP REIT to offer investors higher yield
Investors of the upcoming KIP REIT can expect a distribution yield of 6.54% in 2017, which is above the average market yield of 5.8%. It also plans to offer a slightly higher yield of 6.59% in 2018. The investment trust plans to raise at least RM234 million via its IPO, which focuses on hybrid community-centric retail centres. The bulk of the IPO proceeds would be used purchase property assets consisting of five KiP Marts located in Tampoi, Kota Tinggi, Masai, Senawang and Malacca, and a neighbourhood retail centre known as KiP Mall in Bangi. (The Star Online)
Penang told to introduct policies to suit property market conditions
The Penang state government has been urged to implement clear-cut housing policies that suit the overall property market conditions. The state must consider the effects of the policies implemented on both the primary and secondary markets. Michael Geh, a real estate agent and senior partner of Raine and Horne International hoped the state does not only consider developers’ interests when implementing housing policies. Higher developer levies and higher land prices will only lead to higher house delivery costs that consumers have to bear, he said. (Malay Mail Online)
Artist’s impression of Scots Pavilion (Image from M Summit)
M Summit set to launch two projects worth RM85mil
Penang-based property developer, M Summit Group is set to launch next month two new mixed development projects, with a combined GDV of RM85 million. The group’s first project outside Penang, Lakeside Pavilion, will be launched in Kedah with a GDV of about RM20 million. the other new project to be launched after Chinese New Year is the Scots Pavilion in Penang, a retirement cum wellness home, equipped with facilities for physically challenged individuals. (Bernama)
Small developers seeking Chinese funds
The highly-competitive local property market has prompted small and midsized companies to look to China for capital support. Chinese companies, on the flip side, are taking advantage of this to expand abroad, especially in Malaysia and Singapore. A property expert said the market had been dominated by local property giants, which made it difficult for smaller companies to compete. The involvement of Chinese companies is not just good for the smaller companies but also for the market as it would boost the confidence of buyers and investors. Malaysia and Singapore are among the top 10 countries that property giants in China are keen to invest in. (New Straits Times Online)
