Slated for progress

THE first phase of Aspen Vision City in Batu Kawan will commence work within five years.

Aspen Group chief executive officer Datuk M. Murly said the first phase comprising 450 units of shoplots and a shopping centre, with an Ikea store as the anchor tenant.

“The gross development value for the shoplots is around RM760mil. We have yet to work out the investment for the shopping centre,” he said.

He was speaking during the signing ceremony for a 99ha (245 acres) land to be used for Aspen Vision City development, which was witnessed by Chief Minister Lim Guan Eng.

The signing was between Aspen Group and Ikano and Penang Development Corporation.

Also present were Aspen Group chairman and executive director Datuk Seri Nazir Ariff, Ikano managing director Christian Rojkjaer and Ivory Properties Group Bhd chief executive officer Datuk Low Eng Hock.

Murly said the other facilities for Aspen Vision City included residential properties, offices, medic facilities, large central park, international school, retail shops and an integrated central integrated hub for Seberang Prai.

“After two years of detailed study and planning, we believe Batu Kawan is the future city of Penang and we look forward to spearhead the development of its central business district,” Murly added.

Meanwhile, Rojkjaer said a study was now being conducted on the market size in the northern region.

“We are also studying the spending habits, the population size and their needs.

“We have not set a deadline for the completion of the study,” Rojkjaer said.

Aspen Vision Land Sdn Bhd is a special purpose vehicle formed by Ivory with Aspen owning a 51% stake.

With an estimated gross development value of RM8bil, Aspen Vision City is scheduled for completion over a period of 10 years from its commencement date. - The Star

No compromise on quality of affordable housing project

BY R. SEKARAN

Important agreement: Murly (second left) exchanging documents with Zaini after the signing ceremony between MBSB and Aspen Group. With them are Nazir (left) and Abdul Halim.

ASPEN Group Holdings Sdn Bhd’s RM400mil Tri Pinnacle project will be the first affordable housing scheme on Penang island with a high quality ambience.

Its chief executive officer Datuk Manokharan Murly said the project, located on a 4ha site in Mount Erskine in Tanjung Tokong, was open to first-time house buyers registered with the state government.

It will be launched in the fourth quarter of 2014.

Tri Pinnacle will have 390 units of 650sq ft low medium-cost (LMC) apartments priced at RM72,500 and 859 units of 800sq ft affordable condominiums priced at RM299,000.

Murly was speaking to reporters after signing a RM95.5mil Islamic loan facility with Malaysia Building Society Bhd (MBSB).

Also present were MBSB President and chief executive officer Datuk Zaini Othman, MBSB chairman Tan Sri Abdul Halim Ali and Aspen Group chairman Datuk Seri Nazir Ariff.

Murly added that the state government would expedite the approval process of genuine applicants to buy the condominiums.

The MBSB loan facility will be used to defray the cost of the freehold site for the Tri Pinnacle project, according to Murly.

“We are here to dispel the common negative perception associated with LMC and medium cost (MC) developments which usually suffer from shoddy architectural design and quality, lack of facilities and security,” said Murly.

“Tri Pinnacle will stand out as an attractive spot to work and live.

“Landscaping, designed with vertical gardens, plays a prominent part in the scheme. 

“It will create a natural buffer between the adjoining roads and car park podiums, and mitigate the heat effect,” he said.

Murly said the project would be designed with a 24-hour two-tier security access system.

There will be an elevated garden, a swimming pool, a basketball court, gymnasium, BBQ pits and children’s playground.

Meanwhile, Zaini said the collaboration enabled the company to be part of a vibrant project that would contribute to Penang’s property development sector.

“Other than providing financing facilities to Aspen Group, we will also extend an attractive financing package to its home buyers.

“MBSB is managing several property development projects on the island through contract financing, bridging projects as well as structured financing initiatives,” he said. - The Star

Aspen Group to focus on affordable housing

GEORGE TOWN: Affordable housing, widely sought after by the growing middle-income group, has led local developer Aspen Group to launch the first affordable development project to cater to this community.

Its chief executive officer Datuk Murly Manokharan said unlike other developers that incorporate low or low-medium cost homes within their projects to fulfil the quota, Aspen was the first to focus on only affordable homes.

“As a business entity, we have been told that there was a variety of pricing for affordable homes. It was either RM500,000 or RM400,000. 

“We see RM300,000 as affordable and have worked with the state to achieve this. We were not asked by the state to build these homes, but we see this as a necessity.

“It does not bring us huge returns but if planned well and with the right landbank, we can achieve returns according to the economies of scale,” he said.

He added that the company is also looking at making affordable homes its core business.

“There is a huge demand for this sector. Though we are new and small, we have no commitments to shareholders. We are happy with smaller profit margins.

“This is a deliberate business model. We are looking at a gross development profit of RM400 million,” he said, adding that the company would utilise Singapore’s Housing and Developmet Board (HDB) model with further fine-tuning.

He said a 0.6km road from the present Mount Erskine market would be built as an alternative access road connecting its development.

The project called Tri-Pinnacle on Lebuhraya Halia, Tanjung Tokong will feature 390 low medium cost units of 650 sq feet priced at RM72,500 each and 859 units of affordable units of 800 sq feet costing RM299,000 each.

The property to be sited on a 4ha piece of  land behind The Peak development by Ivory Property would begin in the third quarter of the year with a RM95.5 million Islamic financial facility from the Malaysian Building Society Berhad (MBSB).

Established in 2013, Aspen has projects with a gross development value of RM8 billion that would be developed over 10 years including its Vision City in Batu Kawan that is anchored by Swedish chainstore, Ikea.

Murly said Aspen aims to change the perception that low medium cost units are plagued with problems.

“A lot of effort has been put into the design to ensure internal and external qualities are met, including facilities, making it similar to the condominiums one would find in town.

“We are also looking into upgrading the low medium cost in terms of design and outlook, and there is the cross subsidy element between this and affordable units,” he said.

Speaking at a press conference after the signing ceremony between Aspen and MBSB, Murly said in order to reduce the building cost, there would only be one category for low medium cost and affordable units, respectively.

Asked if there were any incentives by the state for carrying out a purely affordable housing development, Murly said speedy approvals were the only incentive.

The units are available to those registered with the state’s affordable housing eligibility board, he said, adding that there were 30,000 people on the state’s list.

“There is only so much the state can do on its own and that is why they asked private developers to help,” he said.

Meanwhile, MBSB president and chief executive officer Datuk Ahmad Zaini Othman said loan packages would be made attractive for buyers but they are free to seek their own financial arrangements.

“We are mindful that these are affordable houses so the package ought to be competitive and not be too pricey and we will put in more protection such as insurance schemes,” he said.

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This article first appeared in The Edge Financial Daily, on May 29, 2014.