Bayan Mutiara: Guan Eng clarifies

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Guan Eng has responded to some of the questions raised over the Bayan Mutiara land deal.

Just putting the CM’s response here in the interest of fairness.
This excerpt from Malaysiakini:

It is learnt that PDC, of which Lim is chairperson, has yet to receive the payment for the land from Ivory Properties, and queries arose about where the RM500 million came from.

When asked, Lim (left) said the developer had handed over the first payment of RM20 million, and the remaining money, which adds up to RM1.1 billion for the parcel of land, will be settled in five years.

When asked from where the state had obtained the RM500 million to pay the PDC for the homes, Lim said the money came from the state’s coffers.

“The state government has the money, after all there is a surplus in its coffers every year. It is not a problem to pay the amount,” he told reporters in Komtar today.

It is learnt that Ivory Properties had also managed to get approval from Bursa Saham to defer its second payment for three months, until May.

Lim said the extension was only for two months and that the developer was liable to pay interest due to the delay in payment.

CM’s enemies have ‘run out of capital’

Meanwhile, Lim said his enemies have “run out of capital”, and have stooped to attack him over petty issues, even those related to an open tender system.

The PDC, he noted, managed to secure the highest bid – RM240 per square foot (psf) when the market price for the land was not even RM150 psf.

“Who else is willing to pay that much? It is an open competitive tender, how can they say it is cheaper? I don’t ever sell anything cheap,” he said.

“How many parties can come up with RM1.1 billion? Of course, we ensure that they have the proper financial backing, too, because there is no point for them to say they can come up with the money, but have no real financial backing,” he added.

Lim insisted that the deal was processed in a “transparent and accountable” manner.

When asked why the price of the land was lower than that for the other parcels of land, Lim said that one must not compare “apples with oranges”.

Market price for the land is “not even RM150 psf”? Hmmm… and the GDV is RM10bn?

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rempahman

George Town: The development potential of Penang island’s southeastern area is growing as more property developers are eyeing it for their projects. Business Times has learnt that CP Land Sdn Bhd, the property arm of the CP Group, has disposed of 40 hectares of land it owns in the Queensbay area at Bayan Lepas to a Penang-based property player. Sources said the land was sold at RM420 per sq foot (psf) to Asia Green Development Sdn Bhd in May and the transaction is believed to be worth RM160 million. Asia Green is said to be planning to build serviced apartments… Read more »

rempahman

Selling the land to a company that cannot pay the first tranche and already asking for extention.
Did they do a check on the company’s accounts?

Kometenmelodie

MMC, Please forgive me for I am having problem following your thought process. Are you implying that just because BN govt sold land below market price, then we should allow LGE the similar rights to (allegedly) rip us off by transferring public lands to private developers at cut rate ? This is the same perverse and warped logic seems to be the prevailing mindset of sycophants and cheerleaders of LGE and DAP. First of all, this is not an open tender by RFP. I would encourage you to educate yourself on the differences between RFP and Open Tender before commenting.… Read more »

MMC

… trolls like you. target LGE rite because UMNO is scare “s…” of him. ya, he stood tall for a young and underage girl … where were you? sucking your thumbs? how much can your tempe extract out of canal lands? and deliver >10,000 abandoned houses in selangor. for all he “s…”, he is rewarded with a 60 year toll concession from your venerable PM. you trolls no different from … bak-kut-teh lovers who every sunday talk about God but take a ride on the public, and btw, dijaya is a good good friend of UMNO. so what sya you… Read more »

Kometenmelodie

Ran out of ideas to debate ? So you just attack me instead of debating with ?

Who keep talking about other issues instead of sticking to the issue on hand ? I am sure you can debate and discuss about these other issues you are so passionate about in other blogs / threads.

ong eu soon

The land is a reclaimed land not an existing land, to be fair to LGE, I don’t think that the land is worth 150psf without taking into account the cost to reclaim the land. The whole problem of Bayan Mutiara is DEVELOPMENT for WHOM? With the cost of the land escalating so high, the developer will be able to build affordable housing, other than high end properties. Question is: Is there any taker for super luxury properties. The delay in payment, seem like Vincent is chicken off after evaluation g the present market condition. LGe’s biggest problem is that he… Read more »

tunglang

Who has RM400,000 to spare? Even a RM188,888 loan is so difficult to service, what with escalating costs of food, petrol and other essential services at cheap salaries. Are we prepared for sub-prime property lending that may morph into 2 generations borrowing? Unless all new generations of Penangites don’t get married and stayed single and if still cannot cope like super rats even with 3 jobs at low, low salaries, then migrate to mainland. Otherwise, wait patiently in your parents home for the count down to the Great Waterhole Crash of Penang Serengeti Property Chase. And then go for the… Read more »

MMC

anil, may be you should just check with Rehda Chairman of Penang chapter. that may give you a better idea of the land value. to quote him, “pricing is fair at the material time of bidding”.. kevin, the reserve price is RM200 psf. sure, over time land value will appreciate. if we follow your thoughts that we should keep the land as price will appreciate, then no state should release land to the private sector for development. Juts like in Hong Kong and Singapore, the government do progressively release land to generate revenue and also as an administrative measure on… Read more »

Anson

Anil

How has Ivory contributed to Penang from CSR point of view?
I have yet to see any. Maybe I miss out.

James

I do not recall anything good from them.

josephlim

Can someone pls check whether CP Landmark sold a sea side property in Queensbay for RM500psf

dontknowmuch

commenters would do well to learn more about property development rather than just regurgitate coffee shop talk. you too anil.

tunglang

Property talk is not reserved to property gurus, property salesmen or high brow property know-all. It is an investment asset which anyone in their right mind has a say, even in kopitiam where some semblance of truth and realities of happening are shared or leaked to the public. Who says one need to write a thesis with a long list of references on property market in order to qualify for a comment? Read them, accept at face value or reject any politely. And don’t have to resort to taking a knife (Tho) to cut others. Remember: Let Justice Flow Like… Read more »

Kometenmelodie

Well, does LGE think we Penangites are uneducated and stupid people or consist of blind PR supporters who consider him as demigod ?

The manner he reacts angrily and almost contemptuously to questions on the deal is shocking. It is the case if if you question me then you are UMNO/BN agent and an enemy of Penang.

This is much worse than PGCC and with the exception of Anil, all ou NGOs are keeping their “elegant silence”.

tunglang

The sad thing is there are those who cannot stand a voice of questioning as in the western democratic countries. Our leadership seems to practice the principles of Taoism of no questioning the elders.
In politics and state management, the onus is on the leaders to accept criticism for valued judgement and readdress / rework of issues close to the hearts of their fellow citizens.
Unless we want to be another Ostrich that hears no evil, see no evil and speaks no evil in anilnetto.com. (evil in this context means stirring of thoughts and sincere questioning of development)

Gerakan K

——————————————————
CM’s enemies have ‘run out of capital’
——————————————————
Hello, state $$$ = people money = my cukai pintu + cukai tanah $$$ + other taxes & payable !!!

I think LGE combative attitude must change lah. You are no longer the street fighter. Now you are my CM (sad !!!). Think before shooting.

I’m very disappointed with LGE attitude and works performance.

Andrew I

You won’t be happy until you get back mediocre in the form of Gelakan. Normal people weigh the pros and cons. Sadly for you, no one wants to go back to the cons.

MMC

anil, if its an open tender, you seem to want to second guess the CM. i wonder why? thus far, i take my hats off to the CM who has lived up to his call for transparency.Under the previous government, I wonder what will the state get. just look at the track record. for a project of such magnitude, its normally priced lower on psf to take into consideration the holding cost and attendant risk. RM10b GDV can only be realised over a long period of time (no less than 10 years) and the developer will have to factor the… Read more »

sunnyooi

Open tender means highest offer la.

Kometenmelodie

MMC Surely you are not joking ? What’s the point of selling the land at Rm240/psf when the market rate is much higher ? Even if it an open tender, if the bid is lower than expected, why sell ?I also understand that the tender was called for re-bid.No one knows why and with LGE’s track record, I am highly doubtful of his “open tender” system. This is not the first time such (alleged) abnormalities occurred under LGE’s “open tender”. eSpice readily comes to mind. There were talks of the deal was (allegedly) “fixed” among the property players in the… Read more »

Kevin

MMC, we are not questioning LGE’s integrity or his open tender system. In an open tender there should be a reserve price. Whether that price is too low or too high is subject to people’s judgment considering that surrounding land cost almost twice as much when privately sold. The open tender system has done well, but I am sure you agree with me that the land cannot be cheaper than 150psf as said by lge right? 240psf (the final price) to me seems reasonable, although I would have used the land for other purposes such as recreation. Btw, the holding… Read more »

tunglang

Penang Lang are ‘Gong Kia’ (stupid) but loves all the concrete, steel and green glass facades of rich man’s homes – untouchable but in their day dreams in the heat of rat mills.

Anson

LGE said this in Hokkien:
“Bo Tun Tor Uu Choi, Uu Choi Tor Uu Tan Pui.”
『无吞就有剩,有剩就会有得分』

Meaning:
No corruption will bring surplus.
With surplus, money can be shared with rakyat!

Kevin

I am a supporter of most of LGE’s policies and undertakings but to say that the land is not even worth 150psf is just shows that he lacks some very basic real estate knowledge. Either that or he thinks others are stupid enough to believe that.. Even land in Jelutong and bayan baru and sungai ara and batu maung. This is prime waterfront land located so near the bridge, expressway and airport yet he thinks it is below 150psf. Furthermore most of it has already been cleared and leveled. Unless of course this is another case of him being misquoted.

Gerakan K

——————————————
he lacks some very basic real estate knowledge
——————————————

You know what is sweetened deal ??? You know what is ‘you help me, I help you’ ???

Andrew I

Seeing the speck in someone’s eye but can’t see the log in his own as usual.

Yang

Kevin, Yes LGE was right. It is not worth that amount RM150 per square feet. Although it is seafront, it is reclaimed land and it will be leasehold. Vincent Tan brought the prime land (freehold) at race course is just about RM190+ per sq ft.In most urban area they are just worth about 110 – 150 per sq ft. depending on the size and location. At 240 per sq ft it can be consider as expensive. Slightly further up at Batu Maung it is RM60 – 80 per sq ft and in Balik Pulau depending on area and contour it… Read more »

tunglang

paper share for cash investing in a leasehold venture. Hmmmm!

Yang

Anil : All seafront and govt land for projects are usually leasehold. If the seafront become freehold, Ah Soon will definite cause an uproar here again.

Kevin

A leasehold 20 x 80 terrace house in Jelutong seafront costs 1.1 million. In D residence, which is part of Bayan Mutiara, a 6000sf bungalow is selling for 4.5 million. 150psf x 6000 = 900k. Now supposed that the cost of building the bungalow is 1.5 million each (a very large sum even for a bungalow), the total property price would be 1.5 mil + 900k = 2.4 million. The fact that it is selling for 4.5 million means that the land is surely worth more than 150psf being construction cost cannot exceed 1.5 mil each for such a small… Read more »

tunglang

…pdc told everyone that it would be converted to freehold and I am against reclaimed land being converted.
With this precedence, developers will happily prefer more reclaimed land for development and have the cheek to demand super-richman’s prices as good price for investing or speculating. Which KL developers don’t want to korek the market here?
Leasehold > freehold
reclaimed land attractive terms & conditions including infrastructural development swap
Fatt Tai Choy, Fatt Tai Choy, Chan Hai Fatt Tai Choi Ah!

moo_t

Well, some sales come with exit clauses, where the side failure to meet the requirement exit and pay penalty . And the property return to seller, rather than allow the buyer to sell something the don’t own to make quit profit or meet the term . Why nobody asking this ?