<article>The Penang state remains an attractive market for foreign investors, and market watchers estimate the region to see a healthy stream of investment inflow this year, largely from the electronic-based manufacturing sector.</article>

The Penang state remains an attractive market for foreign investors, and market watchers estimate the region to see a healthy stream of investment inflow this year, largely from the electronic-based manufacturing sector.
Meanwhile. the Malaysia property scene witnessed some opportunist land purchases, as players in the industry sought to increase their land bank and plan future developments.
<h2>Penang to see $1.4b investment inflow in 2015</h2>
The Penang state can expect some MYR5 billion ($1.38 billion) worth of incoming investments this year, from four multinational corporations in the electronic-based manufacturing sector.
<a style="color: #000080;" href="http://www.investpenang.gov.my/" target="_blank">investPenang</a> director Lee Kah Choon said these were only initial investments that would materialise over the course of the year.
Without naming the companies, Lee did not rule out that these could be China companies that were listed in the United States.
“A couple of them have  already received endorsement from the Malaysian Investment Development Authority and were sourcing for factories now, while the other two are still in the final stages of negotiations,” he told a press conference on the 2015 economic outlook for Penang.
“There will be about 2,000 jobs generated from these investments. They could be located on the island or in Batu Kawan.”
Lee said the Penang International Technology Park and Business Process Outsourcing (BPO) projects in Batu Kawan and Bayan Baru respectively, would be jointly developed with <a style="color: #000080;" href="http://www.temasek.com.sg/" target="_blank">Temasek Holdings</a> and <a style="color: #000080;" href="http://www.edis.sg/" target="_blank">Economic Development Innovations Singapore</a> and due for completion in five to 10 years.
The projects have a gross development value of MYR11.3 billion ($3.12 billion) and will generate 25,000 to 30,000 jobs in the future.
Penang has the most approved manufacturing projects in Malaysia after Johor and Sawarak. This trend, Lee said, will continue this year, as a number of foreign direct investment (FDI) projects are expected to begin or be completed in 2015.
Lee said that It is expected that Penang will remain as one of the major Malaysian receivers of FDI in the first half of 2015 as it did in 2014, although the state’s economy had become less dependent on FDI.
“Growth in the services sector, especially in the medical tourism and support services outsourcing, will in turn enhance the overall economy,” Lee said.
<h2>Hua Yang acquires land for GDV development</h2>
<a href="http://www.huayang.com.my/" target="_blank">Hua Yang Bhd</a> has acquired 8.09 acres of leasehold land located along the Middle Ring Road 2 (MRR2) for the development of a high-rise mixed project with an estimated gross development value (GDV) of MYR800 million ($221.5 million).
The company, in a statement to the local exchange last Friday,  said the parcel of land was acquired for a total purchase consideration of MYR120 million, with the sales and purchase agreement expected to be completed by the second quarter of financial year ending March 31, 2016.
The lease on the 8.09 acres land will expire on May 2111. The high-rise mixed development is to be funded by internally-generated funds and/or bank borrowings, it said.
Hua Yang believed that its planned project will receive positive response from middle-income young first-time home buyers, among which the demand for affordable housing remains favourable.
“This latest acquisition is also in line with our aim of replenishing our current landbank, and this puts us one step closer towards our goal in achieving a total undeveloped landbank GDV of MYR5 billion ($1.38 billion),” CEO Ho Wen Yan said in the statement.
The group has a current total undeveloped landbank of 502 acres with a potential GDV of MYR3.9 billion ($1.08 billion), with the Klang Valley, Johor and Perak remaining as its key focus areas.
The parcel of land is situated to the north of Selayang, Kuala Lumpur, and is placed in a well-established area with high potential of population growth.
Its strategic location provides ready access to Petaling Jaya and Kuala Lumpur areas, which are just 15 minutes away via various highways such as the MRR2, DUKE Highway, New Klang Valley Expressway (NKVE), and Damansara–Puchong Expressway (LDP), the group said.
This latest acquisition came on the back of its acquisition of two plots of land on January 26 in Bukit Mertajam, Penang, which are slated for a mixed development and a residential condominium.
<h2>KSL buys agricultural land for $25m</h2>
<a style="color: #000080;" href="http://www.ksl.my/ksl/" target="_blank">KSL Holdings Bhd</a> purchased 297.2 acres of agricultural land in Batu Pahat, Johor, for MYR90.62 million ($25 million), primarily to replenish the land bank of the group.
The land banking exercise was in line with the expansion plan to acquire and enlarge its land bank at strategic locations for the future property development activities, too, the group said in a Bursa Malaysia filing last Friday.
“The proposed acquisition will provide the group with the required land bank, and are expected to achieve medium to long term sustainable income growth and visibility,” KSL said.
The parcels of land are purchased by four of KSL’s wholly-owned subsidiaries from Indah Corp Bhd, an investment holding company which operates the Bukit Banang Golf and Country Club.
KSL said the MYR90.62 million price tag was arrived on a willing buyer willing seller basis, after taking into consideration, the development potential of the land and making comparisons with the market value of matured properties surrounding the land.
<h2>MK Land to jointly develop 11.78-acre mixed development</h2>
<a style="color: #000080;" href="http://www.mkland.com.my/" target="_blank">MK Land Holdings Bhd</a>, via its wholly-owned unit <a style="color: #000080;" href="http://www.bloomberg.com/research/stocks/private/snapshot.asp?privcapId=31230123" target="_blank">Saujana Triangle Sdn Bhd</a>, has inked an agreement to jointly develop a 11.78 acre mixed development project with <a style="color: #000080;" href="http://mammoth-empire.com/" target="_blank">Mammoth Empire Land Sdn Bhd</a> in Damansara Perdana, Selangor.
In a filing with Bursa Malaysia on Friday, the property group said the parcel of leasehold land is owned by Saujana Triangle, while Mammoth Empire Land will act as the developer for the project.
Mammoth Empire Land is privately-held by <a style="color: #000080;" href="http://www.mutiaradamansara.com/real-estate-news-blog/datuk-sean-ngs-mammoth-empire-and-iib-to-build-rm4-bln-medini-empire" target="_blank">Sean Ng</a>, who has recently attracted attention having invited American socialite <a style="color: #000080;" href="http://www.thestar.com.my/News/Nation/2015/01/23/Paris-to-perform-in-KL-today/" target="_blank">Paris Hilton to perform</a> at the group’s MYR5 billion ($1.38 million) Empire City Damansara development last month.
Under the agreement, Saujana Triangle is entitled to MYR82.12 million ($22.74 million) for contributing the parcel of land (at MYR160 per sq ft) or 22 per cent of the gross development value (GDV) of the development project, whichever the higher.
Mammoth Empire Land is expected to settle Saujana Triangle’s entitlement within a year from the date of the joint development agreement.
MK Land has plans to expedite the development of its land bank in Damansara Perdana. The agreement also “represents a strategic opportunity for the company to venture into property development, with other reputable developers”.
The joint development is also expected to contribute positively to MK Land, as no source of funding is required from MK Land or Saujana Triangle, since Mammoth Empire Land will be solely responsible to provide the necessary financial strength and resources to meet the development costs of the joint venture land.

Penang to see $1.4b investment inflow, KSL buys agricultural land, Hua Yang acquires land, MK Land to jointly develop 11.78-acre mixed development

MY Dealbook: KSL, KK Land, Penang, Hua Yang

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