Puteri Harbour Community

[Investor]

Truely far-sighted. admire....

Thanks for your kind words

 

[quartz28]

Is the occupancy rate of your units and rack rates transparent to the owner of the unit?

I believe the mgmt will take the total occupancy rev minus the cost and divide by each unit (of course by size) and payout on a quarterly basis with a min 5% gaurantee payout ..

 

[quartz28]

Its Somerset, and we are using standard hotel contract.

By the way, we k sell anytime we like in the ten years. So if we manage to get a return of 8%, then we k sell off the units to would be investors at 5% return at RM1120psf.

If I may...how do u come up w 1120psf ?

 

[Valdez]

SINGAPORE'S Tang Group of Companies is the latest to invest in Malaysia's economic development zone, Iskandar Malaysia.

Iskandar Investment Berhad's wholly owned subsidiary, Medini Land Sdn Bhd, and Global Skyline Sdn Bhd, a unit of Tang Group, on Monday signed a 99-year lease purchase agreement for three plots of land for about RM49 million (S$19.6 million), the companies said in a joint release yesterday.

The three plots, which cover 3.2 ha, have a maximum gross floor area of about 1.38 million sq ft.

Tang Group intends to build a mixed development that will include residential and serviced apartment towers, a hotel and shophouses. The development, iMedini Walk, is expected to have a gross development value of about RM750 million, the company said.

Flanking the spine road that leads to Legoland Malaysia and the lifestyle Mall of Medini, the project will boast a stretch of more than 150 three-storey strata shophouses that average 3,300 sq ft.

This retail belt will be flanked by towers housing the hotel and serviced apartments, and residential apartments respectively.

The 250 hotel and serviced apartments will be located in the towers north of the site and overlook Legoland, while the residential apartments will be located in the towers to the south of the site, with views towards Puteri Harbour.

Said Dennis Chiu, director of Tang Group: "With the opening of Legoland, we anticipate a lot more tourists. It is also a strategic route for tours travelling from Singapore to Kuala Lumpur, Malaysia. The demand for hotels is expected to be high.

"We recognise the potential of Iskandar Malaysia, with immense opportunities to create and offer innovative and modern business and lifestyle solutions to not just Malaysians but global citizens.

"Our interest and ventures in Malaysia will continue, with special interest in one of the most promising economic corridors in Southern Johor."

Syed Mohamed Syed Ibrahim, president and chief executive officer of Iskandar Investment Berhad, said: "Our efforts in Nusajaya and Iskandar Malaysia have been towards creating an eco-system of a modern metropolis and a livable city. This is not just our continuing aspiration but also an assurance and a promise to our regional partners and investors from Singapore."

Nusajaya is one of five flagship development zones in Iskandar's 2,217 sq km region.

The others are JB City Centre, Eastern Gate Development Zone, Western Gate Development Zone and Senai-Kulai.

 

[DCputeri]

Are these information (account book) is opened to all investor? Otherwise, you may not know if they have achieved which occupany rate.

I believe the mgmt will take the total occupancy rev minus the cost and divide by each unit (of course by size) and payout on a quarterly basis with a min 5% gaurantee payout ..

 

[Funniman]

Are these information (account book) is opened to all investor? Otherwise, you may not know if they have achieved which occupany rate.

If I am the management company, it is like running a business. Total revenue less all expenses and operation cost including maintenance, upkeep, admin, marketing and profits for myself before sharing with the investors, as long as it is at least 5%. Note that provisions have to be made for low occupancy periods as well.

 

[DCputeri]

But how would you know the true expenses unless it is an open book. Maintenance is rather wide as it can also include replacement cost. Hence, you derive at the nett returns. It is rather doggy.

If I am the management company, it is like running a business. Total revenue less all expenses and operation cost including maintenance, upkeep, admin, marketing and profits for myself before sharing with the investors, as long as it is at least 5%. Note that provisions have to be made for low occupancy periods as well.

 

[Funniman]

But how would you know the true expenses unless it is an open book. Maintenance is rather wide as it can also include replacement cost. Hence, you derive at the nett returns. It is rather doggy.

My opinion most probably would be like this ( Of course I am a novice on this subject)

"Business" is the keyword. It comprise of revenue, management, sales, direct, indirect expenses. It is not straightforward accounting. It is not dodgy but rather a way of management. It is just like ultra conservative unit trust but this is even better. No upfront agent fees and guaranteed 5% yield.
Honestly, I think it is a good deal.

 

[DCputeri]

What do you understand by this: By the way, we k sell anytime we like in the ten years. So if we manage to get a return of 8%, then we k sell off the units to would be investors at 5% return at RM1120psf.

My opinion most probably would be like this ( Of course I am a novice on this subject)

"Business" is the keyword. It comprise of revenue, management, sales, direct, indirect expenses. It is not straightforward accounting. It is not dodgy but rather a way of management. It is just like ultra conservative unit trust but this is even better. No upfront agent fees and guaranteed 5% yield.
Honestly, I think it is a good deal.

 

[Funniman]

What do you understand by this: By the way, we k sell anytime we like in the ten years. So if we manage to get a return of 8%, then we k sell off the units to would be investors at 5% return at RM1120psf.

That means the lease agreement with its original terms is transferable within the 10 year period. It got nothing to do with the property title.
How our friend got the figures of RM1120, I think it is most probably market driven. No fixed formula as it has nothing to do with the lease agreement.

Maybe Dfiris can shed some light?

 

[Dfiris]

That means the lease agreement with its original terms is transferable within the 10 year period. It got nothing to do with the property title.
How our friend got the figures of RM1120, I think it is most probably market driven. No fixed formula as it has nothing to do with the lease agreement.

Maybe Dfiris can shed some light?

Lets say for example

based on RM700psf fully furnished, SPH able to bring in 8% returns, that would be RM56psf.

At point of selling, if surrounding projects k only command yields of 4-5% or lower because of new higher selling prices of surrounding projects, we k market the SPH units at 5% yield to potential buyers.

Then RM56/5% would give RM1120psf selling price.

So message is very clear, SPH woukd be a benchmark ultimately when it is completed, providing a rough reference for prices and rentals in the area.

 

[Dfiris]

If my project k only continue to get 5% return, I would feel paisei to sell to new investors at RM1120psf, cos it would mean only about 3% return to new buyers. Unless the surrounding projects k only command that 3% yield.

 

[Dfiris]

So I hope you all kinda of get my hint on something...

 

[Funniman]

Lets say for example

based on RM700psf fully furnished, SPH able to bring in 8% returns, that would be RM56psf.

At point of selling, if surrounding projects k only command yields of 4-5% or lower because of new higher selling prices of surrounding projects, we k market the SPH units at 5% yield to potential buyers.

Then RM56/5% would give RM1120psf selling price.

So message is very clear, SPH woukd be a benchmark ultimately when it is completed, providing a rough reference for prices and rentals in the area.

Okok..it is actually 5% on top of the 8% yield. Being top of the performing property, you price it higher if anyone is interested to buy it. That way, you lead the market. Good insight.

 

[Funniman]

So I hope you all kinda of get my hint on something...

Kinda slow here....

 

[Dfiris]

Kinda slow here....

The benchmark yield for my own standard should always be 200 basis points above that designated country's risk free rate ( which we k use their Fixed Deposit rate) as reference at 3% average.

Freehold - 3% + 2% = 5%
99 yrs - 3% + 3% = 6%

This for the extra risk we take in property investment as compared to Fixed Deposit. And for covering outgoing costs like maintenance, assessment and other related costs n fees. Its a rough guide and everyone is free to set their own benchmarks so don't pinpoint on the mechanics hor.

Then once you are invested in a freehold property in a good location (meaning marketable at all times, just a matter of price), you can depend on the property to help you beat inflation over time, must keep long enough to ride through all correction cycles (so freehold is important)

So for the recent buys at RM1300psf, based on 5% yield, you need to get RM5.40psf. It is already higher than KL standards.

 

[Funniman]

The benchmark yield for my own standard should always be 200 basis points above that country's risk free rate ( which we k use their Fixed Deposit rate) as reference at 3% average.

Freehold - 3% + 2% = 5%
99 yrs - 3% + 3% = 6%

This for the extra risk we take in property investment as compared to Fixed Deposit. And for covering outgoing costs like maintenance, assessment and other related costs n fees. Its a rough guide and everyone is free to set their own benchmarks so don't pinpoint on the mechanics hor.

Then once you are invested in a freehold property in a good location (meaning marketable at all times, just a matter of price), you can depend on the property to help you beat inflation over time, must keep long enough to ride through all correction cycles (so freehold is important)

So for the recent buys at RM1300psf, based on 5% yield, you need to get RM5.40psf. It is already higher than KL standards.

It's a great day today. I learnt some finer points of investment. Tq very much.

 

[Jogs1]

Heard no increase in $$ for Teega. Cheers!

 

[DCputeri]

What is KL standard range of rental rates (RMpsf)?

The benchmark yield for my own standard should always be 200 basis points above that designated country's risk free rate ( which we k use their Fixed Deposit rate) as reference at 3% average.

Freehold - 3% + 2% = 5%
99 yrs - 3% + 3% = 6%

This for the extra risk we take in property investment as compared to Fixed Deposit. And for covering outgoing costs like maintenance, assessment and other related costs n fees. Its a rough guide and everyone is free to set their own benchmarks so don't pinpoint on the mechanics hor.

Then once you are invested in a freehold property in a good location (meaning marketable at all times, just a matter of price), you can depend on the property to help you beat inflation over time, must keep long enough to ride through all correction cycles (so freehold is important)

So for the recent buys at RM1300psf, based on 5% yield, you need to get RM5.40psf. It is already higher than KL standards.

 

[Dfiris]

What is KL standard range of rental rates (RMpsf)?

KLCC about RM4-5psf