Ivory in RM1.8bil Penang projects

The City Residence and The Wave to be main revenue contributors for the group

Ivory Properties Group Bhd is carrying out RM1.8bil worth of projects on Penang island this year.

This includes the first phase of Penang WorldCity (PWC) called Tropicana Bay Residences with a gross development value (GDV) of RM933mil, The Wave (GDV of RM494mil), and The City Residence and City Mall (RM313mil).

Group chief operating officer Goh Chin Heng says The City Residence and City Mall and The Wave will be the main contributors to the group’s 2017 fiscal year’s revenue ending next March 31.

“The City Residence and City Mall is expected to contribute RM40mil, while The Wave RM90mil.

“Both projects have done very well. There are only a handful of units left for both projects,” he adds.

The project has done well because of its appeal to the market of young executives looking for a trendy, cosmopolitan-style home in a prime location that gives easy access to interchanges, public transport system, and essential amenities, according to Goh.

“The City Residence and City Mall is in a location where the undersea tunnel and new highway projects are being planned.

“These plans which are part of the Penang Transport Master Plan has enhanced the appeal of properties developed in the vicinity of Tanjung Tokong and Tanjung Bungah.

“The Wave in Penang Times Square (PTS) is located in a neighbourhood that has been earmarked for the upcoming LRT routes,” he said.

Goh says The City Residence and City Mall will be entered to compete for prestigious overseas and local development awards next year. Priced at RM1,100 per sq ft (psf),

The City Residence and City Mall units have built-up areas ranging between 492 sq ft and 7,882 sq ft.

It is a mixed-use development covering a 2.42-acre prime freehold land in Tanjung Tokong, which is opposite the Island Plaza.

There are 202 condominiums for the residential component, while the commercial segment, City Mall consists of 23 three-storey retail units, with built-up areas ranging between 3,750 sq ft and 14,200 sq ft.

The Wave, comprising 312 service suites and a commercial podium, is priced from RM1.3mil onwards.

The project is located within the RM1.75bil Penang Times Square mixed-development scheme which will have a mall, a cineplex and other lifestyle amenities.

Asia-Pacific awards

The Wave bagged the Asia Pacific Property Awards under the Highly Commended for Best Residential High-Rise Architecture Malaysia category in 2014 for its extraordinary exterior, where elegant sun protection stripes sync rhythmically and aesthetically over the glazed glass fa├žade creating the impression that waves are riding over the building.

Although the property market has softened, there are still buyers who are willing to park their money in properties so long as the capital value of the product has strong growth potential.

“There are many locals with the buying power, but they have become more selective in their choice of properties nowadays.

“Some have adopted the ‘wait and see’ strategy due to the prevailing economic mood,” he says.

According to Goh, the rejection of bank loans from this category of buyers was still low.

“This is one of the reasons why we are launching high-end projects in prime locations.

“Give them an integrated project in a prime location with an innovative concept and investors will not mind parking their money in properties to hedge against inflation,” he says.

Moving ahead, Goh says the group would plan more integrated projects with substantial components in the commercial category like hotel, retail space and shoplots.

“Commercial properties in an integrated scheme that can always be leased out to generate long-term recurring income, especially if the integrated project is in a strategic and prime location, in proximity to well-connected public transportation services and facilities.

“This is why the properties in an integrated scheme tends to sell better,” he says.

The group is now planning to commence work early 2017 on The Central (RM610mil GDV), which is a serviced suite project in Penang Times Square that will have a mall, a hotel and other lifestyle amenities in the fourth phase while the fifth and final phase will consist of a hotel.

On completion, Penang Times Square will have 1.2 million sq ft of commercial space, making it one of the biggest malls in Penang.

Ivory Properties’ Moonlight Bay project in Batu Ferringhi was awarded in March The Niche and Unique excellence award at the inaugural StarProperty.my Awards 2016.

The company was also presented with a “Highly Commended” award for its Ivory Tower under office category at the Asia Pacific Property Awards in Kuala Lumpur last month. - The Star

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