The allure of Penang heritage properties

 

Prized property: The Chimes Heritage building at Jalan Bawasah, Penang. The value of heritage properties has increased by 37 to 157 per sq ft since 2008 due to the investments made by Penangites staying overseas and by Singaporeans.

Value of such assets has jumped by as much as 157% psf

THE heritage property segment is still attracting strong interest from investors despite the softening of the overall property market in Penang.

The value of heritage properties has increased by about 37% to 157% per sq ft (psf) since 2008 due to investments made by Penangites staying overseas and by Singaporeans.

Depending on the location, size, and condition of the heritage properties, the present pricing on a psf basis ranges from RM550 per sq ft (psf) to RM1,800 psf, compared to between RM400 psf and RM700 psf in 2008.

According to the National Property Information Centre (Napic), a locally registered company, World Class Land Sdn Bhd, snapped up over 60 pre-war houses in George Town’s heritage areas for about RM122mil.

Raine & Horne Malaysia senior partner Michael Geh says the properties were sold between late 2013 and August 2015.

“The most expensive pre-war property, with a 1,363q ft land area and located in Chulia Street, was sold for over RM2,000 psf,” he says.

It is learnt that about RM30mil would be spent for restoring the properties, as the cost of restoration is about RM500,000 per unit.

The company also acquired a 30,000 sq ft of land in Magazine Road for about RM36.9mil. “This was the highest transaction for a vacant land in 2015, as the sale was transacted at RM1,250 psf,” Geh adds.

Geh says locals tend not to pay attention to the capital appreciation of heritage properties, although the value had risen substantially since 2008.

“They should invest because the supply of heritage properties is limited.

“There only some 3,853 units of such properties in George Town’s heritage core and buffer areas, according to George Town World Heritage Inc.

“Because the supply is limited, it is safe to invest, as the value would tend to rise than fall.

“I urged Penangites to acquire heritage properties for own use and enjoy the capital appreciation that would occur incrementally,” he says.

Because of the strong appreciation in the value of pre-war houses, the rental yield of such properties has remained unattractive.

In 2008, the rental of heritage properties, depending on the location, size, and condition of the heritage properties, ranged between RM1,000 and RM3,000, compared to the rental today which is between RM3,000 and RM8,000.

“Calculated on a yearly basis, the rental yield is not attractive.

“Today the yield is about 4.8%, compared to about 4.5% in 2008

“This shows that the value has appreciated faster than the rentals, as there is very little demand to rent properties in the state,” he says.

According to Geh, local investors should pay attention in particular to the heritage properties in the Prangin Market or Sia Boey area, as it has been earmarked for the location of the central LRT station on the island, which would boost the value of the properties in the area.

Meanwhile, the Malaysian Institute of Architects (PAM, Northern Chapter) chairman Datuk Lawrence Lim says the cost of restoring heritage properties has increased by about 40% since 2008.

“Today the cost to restore such houses ranged between RM150,000 and RM500,000 per unit.

“A simple restoration for a heritage property with a 2,000 sq ft built-up area can cost about RM150,000.

“It cost just RM50,000 to restore the roof of a heritage house,” he says.

Despite the increased in the cost of restoration, there are local investors who are still investing in heritage properties.

Lim, who is also East Design managing director, says the company was now undertaking restoration projects for heritage houses in Hong Kong Street and Magazine Road.

“We will be restoring the Koon Kee office building at Hong Kong Street, the manufacturer of Penang’s famous white coffee.

“The other project involves the restoration of 10 pre-war units in Magazine Road for commercial usage,” Lim says.

Datuk Ooi Sian Hian, who is also Ghee Hiang group executive chairman, says he will be restoring the heritage property of his family’s maternal grandparents at 123 Macalister Road.

The property, measuring 3,600 sq ft in built-up area, sitting on a 30,000 sq ft site, was built in the 19th century, and came under the ownership of Ooi’s maternal grandparents in the 1950s.

“We are getting local architects and architectural students through the assistance of PAM to come up with a suitable design concept to restore the property.

“It will be up to the architectural fraternity to decide on the appropriate design concept for the property.

“Whether it will be restored for commercial or residential usage will depend on their design.

“We plan to kick off the project in two year’s time,” Ooi says.

Ooi’s family has 10 properties at Prangin Lane, nine of which he will restore at a later date for commercial re-use.

“The properties have been passed down from the maternal grandparents.

“We want to wait and see what the market for restored heritage properties is like first, as there are already in the market many such restored heritage projects.

“We also want to wait for the state government’s Sia Boey project to be completed first, as the site has been earmarked for a LRT project hub,” he adds.

Ooi says he is submitting a plan to restore the tenth heritage terraced property located in Prangin Lane, which has a built-up area of 1,620q ft.

“We are naming it Jumpa@41PranginLane, which will be restored as a event centre for pop-up markets, seminars, stage plays, and culinary events,” he says.

Under Ghee Hiang, the group is now restoring its heritage property at 61 Beach Street, which has over 3,000q ft in built-up area.

“It is the Ghee Hiang Group’s Concept Lifestyle In-Store, which will be designed to accommodate a living heritage museum showcasing the history of the group’s history and tau sar pneah products and a lifestyle themed cafe,” he says.

Khoo Kongsi trustee Datuk Khoo Kay Hock says the clan association has restored 16 pre-war properties and had leased them to a hotel operator.

“The properties are undergoing interior refurbishment now, and scheduled for opening in the second half of 2016.

“About RM4mil was invested to restore the properties, which were completely restored two years,” he says.

According to George Town World Heritage Inc general manager Dr Ang Ming Chee, there are 3771 heritage properties in George Town belonging to category II.

“Category II properties are those residences and business premises that have existed for generations.

“They were built to support the traditional beliefs of the inhabitants and users.

“In the George Town’s World Heritage Site (WHS), there are 82 buildings, gateways, cemeteries, and sites categorised as Category 1.

“Category 1 buildings and monuments are important because they reflect the authenticity of the cultural landscape and therefore the outstanding universal values of the world heritage site (WHS),” she adds.

By David Tan The Star

Related:

Penang Heritage Property - Residences Heritage Property Penang Malaysia

Penang Heritage Buildings / World Heritage Sites

Government refusal to recognize the UEC due to 'national sovereignty', Kamalanthan said

 

School activity: Liow (right) with Eco World Foundation chairman Tan Sri Lee Lam Thye (with cap) and its CEO Capt (R) Datuk Liew Siong Sing (on Lee’s right) with students from SJK(C) Bukit Tinggi after Eco World handed over its donation of new canteen tables and benches to the school.

Liow: Retract UEC statement

BENTONG: MCA president Datuk Seri Liow Tiong Lai wants Deputy Education Minister Datuk P. Kamalanathan to retract his remarks about the Unified Examination Certificate (UEC).

He said Kamalanathan’s statement in Parliament that the Government’s refusal to recognise the UEC was due to issues of “national sovereignty” was never discussed in Cabinet meetings.

Kamalanathan and Muhyiddin“I urge Kamalanathan to retract his statement. This has nothing to do with the sovereignty of the country.

“This is his (Kamalanathan) personal view and not the Government’s. He may not have had the necessary information when he commented on the matter and this might mislead the public,” he said at SJK(C) Bukit Tinggi here after witnessing the handover of new canteen tables and benches yesterday.

Liow said if Kamalanathan did not understand the issue, he should have let Deputy Education Minister Chong Sin Woon explain it, adding that the statement might hurt the Chinese education system and the nation.

“The Education Ministry and the Higher Education Ministry have been in discussion over the recognition of the UEC,” he added.

Liow said the matter was discussed by the Malaysian Chinese Education Consultative Council Committee, comprising the United Chinese School Committees Association (Dong Zong), United Chinese School Teachers’ Association (Jia Zong) and Federation of Chinese Associations (Hua Zong), among others.

Responding yesterday, Kamalanathan maintained that his answer in Parliament was based on a Cabinet decision and not his personal view. His parliamentary reply was “verbatim” as per the Cabinet meeting on the matter on Nov 6 last year, he added.

However, he said it did not mean that it was impossible for UEC to be recognised.

“We (Education Ministry) have never closed the door on discussing (such) matters with any organisation because it is the ministry’s and everyone’s hope to see an improvement in the quality of our national education,” he said.

In KOTA KINABALU, Liberal Democratic Party president Datuk Teo Chee Kang said he was puzzled by Kamalanathan’s remarks in Parliament linking recognition of the UEC to national sovereignty.

“I regret that in answering a question in Parliament, the Deputy Minister said that the Government will not recognise the UEC for reasons of national interest and sovereignty.

“I wonder whether he knew what he was talking about. I cannot understand how it is related to national sovereignty,” he added.

- The Star/Asia News Network



Related posts:

 Malaysian Minister admits poor education system ...

May 17, 2014 ... Education Minister II Datuk Seri Idris Jusoh has admitted that Malaysia's education system was below par as shown in global rankings, and ...

The Malaysian Education: bleak and bright side, a wake ...

May 20, 2015 ... The bleak and bright side of Malaysian Education Malaysia may be getting dismal marks for education but there are dedicated people making a ...

 Structural issues including education are holding ...

Sep 22, 2015 ... “As discussed earlier (in the forum) by Minister in the Prime Minister's Department Datuk Seri Abdul Wahid Omar on the education system here, ...

Malaysian education heavily politicised, Quality ...

Nov 7, 2011 ... Our education system is heavily politicised and needs to be de-politicised to offer good, simple and advancing education for all citizens – one ...

 Politically mixed education Malaysia

Jul 25, 2013 ... This has a lot to do with the education system and politics of the day. ... and open- minded citizens are the result of a balanced education system ...

Chinese language advantage and education in M'sia ...

Oct 12, 2014 ... Chinese language advantage and education in M'sia; Don't turn it into a political tool! It is bewildering that vernacular schools should be made ...

 Asian students dominate global exam; Are the Chinese ...

Dec 17, 2013 ... Still, they are indicative of education trends in China and elsewhere in Asia — societies where test results determine entrance into prestigious ...

China start-up 'Little Red Book', Xiaohongshu valued at US$1bil

 

Colour of success: A Chinese actress dressed as a Red Guard and holding a ‘Little Red Book’ performs in front of a portrait of the late Chairman Mao Zedong at a restaurant in Beijing Xiaohongshu says its name has nothing to do with Mao’s famous tome. — Reuters

HONG KONG: The “Little Red Book” has become a symbol of capitalist success in Communist China.

E-commerce start-up Xiaohongshu, which means “Little Red Book” in Chinese, has raised US$100mil from Tencent Holdings Ltd and other investors at a valuation of about US$1bil, two people familiar with the matter said.

The online shopping site co-founded in 2013 by Charlwin Mao, which connects overseas merchants with local buyers, becomes China’s newest billion-dollar startup. It also attracted investment from Genesis Capital and Tiantu Capital in its latest round, the people said, asking not to be identified because the matter is private.

The funds will help bankroll the Shanghai-based startup’s expansion. Xiaohongshu -- which calls itself RED and stresses its name bears no relation to Mao Zedong’s book of quotations - works by letting its mostly younger female users post pictures of favorite products. It then connects them with sellers abroad of everything from Body Shop anti-dandruff shampoo to Lotte peach liquor.

Its fundraising comes as venture capital firms grow more cautious about valuations in China, an economy forecast to grow this year at its slowest pace in a quarter-century.

Genesis Capital is a late-stage investment firm founded by Richard Peng Zhijian, who oversaw Tencent’s investment unit. Genesis and Tencent didn’t respond to e-mailed queries. Calls to Shenzhen-based Tiantu’s general line went unanswered. Xiaohongshu co-founder Mao said he couldn’t immediately comment.

Three-year-old Xiaohongshu claims 17 million registered users on its LinkedIn page and had attracted investment previously from GGV Capital and Zhen Fund.

It specialises in cross-border e-commerce, marketing foreign brands to increasingly wealthy local shoppers.

That’s a market forecast to reach 6.5 trillion yuan (US$1 trillion) by 2016, the state-run Xinhua News Agency cited the Ministry of Commerce as saying in March.

It didn’t elaborate on that figure.

The company says its name has nothing to do with Mao’s famous tome, considered one of the most-printed works in history and known to English-speakers as the “Little Red Book.” The late Communist leader’s book is called “Hong Bao Shu” or “red treasure book” in Chinese. “Why isn’t your website called ‘Little Black Book,’ ‘Little Blue Book,’ ‘Little Purple Book’ or ‘Big Red Book’?” reads a question posted by Xiaohongshu in a section of its website sketching out its origins. “We don’t know. But anyway, our name isn’t because of Hong Bao Shu.” — Bloomberg

Related:

IT WORKS! The Famous Little Red Book That Makes Your Dreams Come True! Law Of Attraction

Related post:

Entrepreneurship is not a job but providing a solution...

Hedge funds invasion of US treasuries puts bond at risk, more turbulence in US debt market

Hedge funds are crowding into U.S. Treasuries, and that has bond traders bracing for more turbulence.

While the Federal Reserve doesn’t break out hedge-fund ownership, a group seen as a proxy increased its holdings to a record $1.27 trillion in the past year, according to a quarterly report released by the central bank this month. That came as foreign central banks and finance ministries, the biggest buy-and-hold owners in recent years, culled their investments for the first time on an annual basis since 2000.

The surge of hedge funds into U.S. government debt is a worrying sign to Societe Generale SA and Commerzbank AG.

They say the firms, which often use borrowed money and jump in and out of trades at a moment’s notice, will boost the chances of sudden shocks in the world’s de facto haven market. That may compound swings in Treasuries, which by some measures have reached record levels as concerns about China, the global economy and diverging central-bank policies whipsaw bond traders. The Treasury Department is already looking into whether the market isn’t running as smoothly as it should.

Volatility Risk

Foreign central banks’ “market share is being replaced by private investors who take a much more active approach,” Rob VandenAssem, the head of investment-grade fixed-income for developed markets at PineBridge Investments, which oversees $85 billion, said in an e-mail. “Hedge funds in particular pose a risk to volatility.”

The potential that hedge funds will amplify Treasury swings adds to questions about the resilience of the $13.3 trillion market, especially as the Fed considers whether to raise interest rates this year. And because yields are so low, sudden shifts in momentum could lead to big losses, especially for less nimble investors.

Ten-year Treasuries yielded 1.89 percent today, more than a half-percentage point below their June peak of 2.5 percent.

In the Fed’s quarterly reports, domestic hedge funds are categorized under “households and non-profit organizations.” Most analysts consider it an accurate gauge of Treasuries held by those high-powered firms, and to a lesser degree, ownership by households and other groups like private-equity shops and personal trusts. The latest data released March 10 showed they were the largest buyers of Treasuries last year, adding $398 billion. That’s the biggest increase on an annual basis since 2009.

Hedge funds are also signaling their presence in the U.S. bond market in other ways. Since the end of 2013, investors domiciled in the Caribbean, a popular legal home for hundreds of hedge funds seeking lower taxes, have increased their holdings of Treasuries by 43 percent to $352 billion, Treasury Department data show. As a group, they’re now the third biggest overseas creditors, behind only China and Japan.

At the same time, foreign investors, who still hold 40 percent of America’s bonds, were the only net sellers in 2015 as central banks in China and other emerging markets raised cash to support their currencies. And Treasury Department figures showed they kept selling at the start of the year.

The rise of hedge-fund ownership may already be making fluctuations in Treasuries worse. This year, daily swings in 10-year yields exceeded one standard deviation -- equal to 0.043 percentage point -- about 39 percent of time, according to TD Securities. That eclipses last year’s figure of 34 percent, which was the highest for any year going back to 1975, the data show.

“This will likely add volatility” said Bruno Braizinha, a fixed-income strategist at SocGen in New York.

Treasury Review

Concerns over abrupt swings, whether it’s because of a lack of liquidity or an increase in high-volume traders, have already caught the attention of the U.S. government. Spurred by a 12-minute plunge and rebound in yields on Oct. 15, 2014, the Treasury Department is conducting its first comprehensive review of the market’s structure since 1998.

Some say hedge funds aren’t the problem, but a potential solution.

By stepping in to take the place of traditional Wall Street banks, whose bond-trading businesses have come under pressure from regulations and shifts in technology, hedge funds may actually increase liquidity. And their use of leverage, or borrowed money, means they have the wherewithal to trade vast quantities of securities.

Leverage, Liquidity

At least that’s the view of Ronin Capital LLC, a Chicago-based proprietary trading firm. When U.S. officials asked for comments on liquidity and market structure earlier this year, the firm wrote in a March 19 letter that “leverage and liquidity in the U.S. Treasury market go hand in hand.”

“If the only entities willing to hold positions in U.S. Treasuries are ‘buy and hold,’ meaningful liquidity in the U.S. Treasury market will be nonexistent,” the firm said.

Some sophisticated investors have also started to trade on Treasury platforms previously reserved for bond dealers, according to an October report from financial-services consulting firm Greenwich Associates. Christian Hauff, the co-founder of Quantitative Brokers LLC, says many of those funds now look a lot like Wall Street’s proprietary bond-trading desks from years ago.

“You’re seeing those that used to trade on Wall Street transition to working at hedge funds,” he said.

Even if hedge funds provide more liquidity, it doesn’t necessarily ensure the ride won’t be bumpy. That’s because while traditional dealers often served as buffers for their clients during times of stress, hedge funds have no such incentive.

When volatility picks up, hedge funds can “jump on another ship,” said David Schnautz, a London-based rates strategist at Commerzbank. - Bloomberg

What is a hedge fund? - MoneyWeek Investment Tutorials

Related posts:

Modern finance and money being managed like a Ponzi scheme! Economic Collapse soon?

Ponzi schemes and modern finance Andrew Sheng says when the originator of a scheme to pass on debt to others is also ‘too big to fail’ – ...

Beware when elephants Trump-et! Trump victory a major global risk

Collective and mutual understanding needed to get out of oncoming global deflation   Rajan: ‘We can no longer ignore the elephant in th...

Entrepreneurship is not a job but providing a solution

Coming up with a winning idea

Entrepreneurship is not a job. It’s about providing a solution, and pulling people and resources together to make that change. Workable business ideas are all about solving problems.

Q: I’m an engineering student in Portugal, but I feel I really was born to be an entrepreneur. I started creating logos for companies when I was about 15. I’m passionate about entrepreneurship and I’m always trying to think of new ways to start businesses. I want to follow my passion — but it’s tough when you have a great business idea, and no support. How do I find the right path? — João Bandeira, PortugalJoão, it’s always heartening to hear a young would-be entrepreneur talk about passion being a key driver in his life. The most successful entrepreneurs share that indescribable desire to change the world and make a positive difference in people’s lives.

And while it can be a struggle in the early days to find one project to pour all your enthusiasm into, just remember that successful entrepreneurs always manage to come up with an idea that’s right for them, and they make it work.

Your question reminds me of the origins of Ring — a wildly successful business that I have invested in.

For years, founder Jamie Siminoff had attempted to come up with a winning business idea — he even turned his garage in California into a lab for prototypes. As he worked there, though, Jamie was annoyed that he couldn’t hear the front doorbell.

One day he decided to fix this problem — he created a program to link the doorbell to his smartphone so that he could answer the door remotely with a video call. It was a great solution.

Jamie’s wife loved the idea as well: When Jamie was away, she could always see who was at the front door, and she felt safer.

Later, Jamie invited friends around to check out his other inventions, but the only thing anybody cared about was the doorbell!

He soon realised that this was the best business idea he ever had, and Ring was born. Just like that, the hours of searching for a winning idea were over.

João, the fact that you are constantly thinking of new businesses to start is a hugely valuable asset. Being proactive is a good thing, but I would strike a note of caution about the idea search.

I recently joined a host of fellow entrepreneurs in Los Angeles for Virgin Atlantic’s inaugural “Business Is an Adventure” event, and the topic of generating business ideas came up in a panel. Sean Rad, the CEO and founder of the dating app Tinder, made a great point.

“Entrepreneurship is not a job — it is a reaction to you wanting to solve a problem,” he said. “You have to wake up and say: ‘I am passionate about making a change, and I am passionate about pulling together people and resources... Not wake up and say: ‘I want to be an entrepreneur’ because I think you’ll kind of be lost... you’ll be looking for a problem instead of finding a problem looking for a solution.”

It’s a shrewd observation, and one that underlies the success of many companies, including Tinder.

In our daily lives, we all come across problems, annoyances or frustrations that we would love to see solved. Luckily, entrepreneurs are perfectly placed to solve those problems.

Interestingly enough, that’s how Virgin Atlantic began. After one particularly terrible experience as a passenger with an unscrupulous airline, I decided there must be a better way to fly. The next day, our team was on the phone with Boeing asking if they had any second-hand 747s that they were willing to sell.

Thankfully, they didn’t laugh and hang up — and the first Virgin airline was born.

So keep in mind that generating ideas is a great strength, but make sure that you’re spending your time and energy searching for solutions, not problems. That’s the best way to approach workable business ideas. Become a passionate problem-solver, and you’re half-way to being a successful entrepreneur.

Also keep in mind that once a great idea has been sparked, getting it off the ground can feel like a daunting task for anyone — especially if you have nobody there to support you, as you point out. I would advise you to take advantage of the connectivity offered by the Internet. Plenty of resources, networks and fellow entrepreneurs are just a click away.

Additionally, getting a mentor who can point you in the right direction and share his experiences is one of the best things you could ever do. You’d be surprised how many people are willing to help if you just ask. — Distributed by The New York Times Syndicate

By Richard Branson

Questions from readers will be answered in future columns. Please send them to Richard.Branson@nytimes.com. Please include your name, country, email address and the name of the website or publication where you read the column.

Related posts:

 Entrepreneur Liew Kee Sin from SP Setia to Eco World ...

Apr 25, 2015 ... Entrepreneur who drives the smaller Eco World group is still a much talked-about figure in corporate world. AT 57 years of age, Tan Sri Liew ...

Building the startup ecosystem

Dec 22, 2015 ... To create this, we strived to equip entrepreneurs with the right startup skills via our education portal, MaGIC Academy, expose  

 We don't need billionaire philanthropists, we need change

Jan 27, 2016 ... Nowadays I'm starting to see more and more entrepreneurs and business owners trying to figure this out, and it is quite inspiring. I think the

Venture scheme accelerates growth of start-ups Dec 26, 2015 ... KUALA LUMPUR: The New Entrepreneurs Foundation's (myNEF) unit Rave Ventures Sdn Bhd is looking to raise RM50 million to     Startups sharing ideas and seeking validation from ...