Buyers sought for prime land in George Town

WITH land getting scarce on Penang island, a tract in George Town that is as big as two Olympic-sized swimming pools could fetch its owners as much as RM37 million.

The 29,986 sq ft freehold parcel for residential use, held by a family for over three generations, has been put up for sale.

According to tender details released by Savills Malaysia, the property’s address is 38, Jalan Perak. The land, which has redevelopment potential, can fetch between RM1,000 and RM1,250 psf, if recent land transactions in the area are anything to go by.

This price is comparable to the prices of residential land in the affluent U Thant area in Kuala Lumpur.

Savills executive chairman Datuk Christopher Boyd tells The Edge that it is not easy to find land of such size in the Jalan Perak area.

“Although the market is subdued, I will be disappointed if we do not get an offer of over RM1,000 psf,” he says, adding that the owners have not set a reserve price yet. Savills has been appointed the exclusive agent for the sale.

According to Savills, residential land closer to the city centre compared with that in Jalan Perak is being sold for about RM1,250 psf. A sea­view commercial property in Jalan Kelawai was sold for just below RM1,000 psf this year while in George Town, the price of prime commercial land is currently around RM1,250 psf.

“Although the land title is ‘residential’, it is a First Grade title, meaning the purchaser will not have to pay for conversion to ‘commercial’. The purchaser can submit his building plans to the authorities and if approved, the zoning could be changed to ‘commercial’,” Boyd says.

Furthermore, as the tract is located outside George Town’s World Heritage zone, the new owner will not be subject to the stringent guidelines and requirements applicable to properties located in the zone.

Boyd says that since there have not been any recent transactions of properties in Jalan Perak, he is expecting some “aggressive bids”. Many of the properties in Jalan Perak have been held by their owners for decades, hence the availability of this tract makes it a rare opportunity for investors.

“Being surrounded by private medical centres and residential properties, this land has the potential for a high-rise luxury development, according to the current planning guidelines,” he points out.

The current title allows for 10 units per acre. It is worth noting that directly opposite the tract is the eight-storey Sri Pinang apartment block.

Boyd is quick to point out that the sale is only for the land and not the bungalow that sits on it. The property, acquired in 1954/55 for 45,000 Malayan dollars, is owned by five siblings, who have a sentimental attachment to their family home. They plan to dismantle and rebuild the house in Tanjung Malim in Perak.

“The house has timber frames, walls and floorboards. Each part will be dismantled, numbered and rebuilt,” says Boyd, of the Lim family’s plan for their childhood home. “A piece of land in Tanjung Malim has been earmarked for the relocation.”

Asked why the family is selling the land, he says the siblings no longer live in Penang.

The most prominent of the siblings is cardiologist Dr Lim Cheok Peng, who is one of the founding doctors of Kuantan Specialist Centre in Pahang. Dr Lim, 70, was the managing director of IHH Healthcare Bhd between March 2011 and December 2013. Prior to that, he was a consultant to Parkway in 1987 and later, became the managing director.

IHH’s previous annual reports state that after Dr Lim retired as managing director, he continued to serve as senior adviser to the board as well as an adviser to the company’s major shareholder, Khazanah Nasional Bhd, on matters concerning wellness investment and creating synergies between IHH’s businesses.

The closing date for the tender for the Jalan Perak tract is Jan 23 next year.

This article first appeared in The Edge Malaysia on Nov 28, 2016. Subscribe here for your personal copy.