Boustead: Deal not yet stitched

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Boustead Holdings Bhd has announced that it has not yet struck a deal with the Penang state government on the terms of the compensation for the scaled-down Royale Bintang Hotel project in George Town’s world heritage site core zone.

The firm said the compensation may include BHB being allowed to reclaim land on Penang island.

The question to ask is, should the local government compensate or fully compensate a firm for loss of future profits or gross development value arising from something that is beyond the government’s control – in this case, a Unesco heritage listing, with its attendant zoning requirements?

Boustead made the announcement in response to an article in The Edge.

Date Announced: 15/09/2010

Subject: Newspaper Article – Boustead may get to reclaim land south of Penang Bridge

We refer to the article entitled “Boustead may get to reclaim land south of Penang Bridge” which had appeared on page 5 of the Edge Financial Daily on Tuesday, 14 September 2010.

The Penang state government had previously directed Boustead Holdings Berhad (“BHB”) to scale down its Royale Bintang Hotel project from 12 floors to 5 floors to be in compliance with the requirements of the United Nations Educational, Scientific and Cultural Organization (UNESCO) of 18 meters or 5-storey height in the core zone of the World Heritage Site in George Town following George Town’s inscription as a UNESCO World Heritage Site.

In relation thereto, BHB has been in negotiations with the Penang state government on the terms of the compensation for the said scaled down Royale Bintang Hotel project which may include BHB being allowed to reclaim land on Penang island.

However, the parties have yet to reach an agreement with regard to the compensation to be awarded to BHB by the Penang state government.

An announcement will be made by BHB in due course setting out the terms of the compensation once the same have been agreed by BHB and the Penang state government.

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tan, tanjong bungah

Hi everyone, I believe the local govt authority and state govt would have factored in the question of “… should the local government compensate or fully compensate a firm for loss of future profits or gross development value arising from something that is beyond the government’s control – in this case, a Unesco heritage listing, with its attendant zoning requirements?” in their negotiations with Boustead on a good and fair compensation, not an unduly profit compensation to Boustead!! The terms of the compensation have not even been decided on as stated by BHB, but OES and Gerakan K have already… Read more »

Ong Eu Soon

Unfortunately LGe is that stupid. He purposely (suggested) the developer (may) seek compensation from the state government. No developer who want to cari makan in Penang will dare to ask for trouble. But LGe gave enough hints to developers to seek compensation when the Heritage issue broke out. Mark my word again, LGe will compensate the developer without a fight!

tan, tanjong bungah

Hi OES, Put yourself in the developer’s shoes. If you are asked to reduce the height of an approved project and would definitely incur extra costs in doing so, as well as incurring possible reduction in future revenue for your shareholders, wouldn’t you feel that it is only fair to be compensated? Your statement ” … . Mark my word again, LGe will compensate the developer without a fight!” is an insinuation that is loaded (in your favour), that whatever compensation given in this case would have been given without a ‘fight’, is at the moment merely a spin to… Read more »

SamG

Gerakan K and Ong Eu Soon made rash and foolish accusations / statements. Reminds of all the Gerakan ex-MPs and ex-ADUNs I have met over the last few years – TOTAL DENIAL! But they all have one thing in common to say, “Why did you have to vote us out, just because of KTK being useless”?

tunglang

That is why KTK had to belatedly say: I’M SORRY-LAH.
Useless, very useless, most useless. Doesn’t matter. In fact, the whole bunch of …. should say sorry to every Penangite…
(At least KTK had the guts to say sorry).

Gerakan K

Today marks the 2nd anniversary of the failed September 16 Putrajaya project. Malu ~ Malu ~ Malu ~ Thanks god !!! BN still the Federal Government of Malaysia !!! How nice is it ??? I still waiting for the “element of surprise” as announced by Anwar 2 years ago. Unfortunately that PR is such a “amateur” first time state government that needed to pay heavy compensation for its unwise actions and reactions. If everyone here has a good memory, it is the state government that offer reminder for the compensation claim !!! How ironic that was !!! It seems that… Read more »

Labu Labi

Gerakan K

Since you always write ‘outside the topic’, I believe back in school days you would get failing marks for your essays and Karangan. Please stick to teh point raised by Anil and submit your rant to Utusan.

Anyway, Gerakan shoudl be ashamed to be associated with you.

AlbertG

Ong, I think it should be the other way round. Gerakan, MCA & MIC are past their shelf-life and are thrown away by most who want change. No way they will be back. Go ask around the man on the street and don’t be surprise you’ll get at least 80% marks for PR.

Ong Eu Soon

DAP Penang won 85% chinese votes in Tanjong 2 battle but failed to form Penang state government. The total MPs Dap had was 25. Come the next election, what is the likelyhood of DAP Penang increase it’s votes? There will not be another tsunami, 4 to 5% votes swing will kill the Penang DAP state government. How confident is DAP Penang in retaining Indian’s votes, Malay’s votes, hawkers’ votes, petty traders’ votes, secret societies’ votes, kaisu’s votes and the votes for change. That alone enough to make up 3-4% votes. A little bit of swing will seriously weaken the state… Read more »

casper

The moment I caught a glimpse of your previous post prior to this follow up, my mind surmise the Edge’s report as no more but a red herring. Whether NST, Star, Sun or Moon, we reader’s must always consider publisher’s VESTED interest to serve their UMNO master, no ? One day it is misinformation about land deals in Penang, next day has levels of poverty/HIV in Kelantan and as for Selangor, the header apt to play out prominently must be the false reporting of continuing PAS-UMNO alliance though I must concede there is veracity of truth with one Hasan Ali… Read more »

AlbertG

Ong EU Soon, what’s your say now. You are one of those whose interest are spoilt by the new state government no wonder you always find opportunity to criticise LGE & PR. For your information YAB LGE is now the most popular are lovable public figure in Penang. …

Ong Eu Soon

Soon he will be treat like KTK. The deal may not be sealed yet. But mark my words again, LGe will just give in to the demand of developer without any resistance. Most likely he will do it voluntarily. LGe is losing ground too soon too fast, it is only the cyber troupers of LGe that are still in denial mode. I can bet with you this state government will not be able to win the next GE. Unfortunate for Penangites, we want change, but LGe want Gerakan and BN to be back to power. Look at how arrogant his… Read more »

wandererAUS

The important point we must always remember, Boustead
is a public company and their objective and responsibility is to gain maximum profit for their shareholders…I see nothing wrong with that. If no dirty hands are involved in the two negotiating parties and everything done above board, I wish them the best of luck!

wandererAUS

Hasri the cherry picker Gerakan K will tell you, “What’s there for me!” Why waste your time with a deranged low life.
Life will be very dull if we do not have BN clowns to entertain us…..

Kwong

Teng HN of Gerakan has already conceded a walk-over in the next election. That goes to show they have nothing better to offer.

Agree that Boustead being a private company to squeeze every sen out of the deal.

Hasri

Gerakan K

What is your Gerakan’s suggestion on compensating Boustead?

This is an opportunity for you to be constructive and change your image.