LAND INVESTMENT Vs DEVELOPMENT Vs JOINT VENTURE
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LAND INVESTMENT Vs DEVELOPMENT vs JOINT VENTURE Tan hwa chuan Feasibility Study Tan Hwa Chuan Copyright of B.I.G Plots SB Tan hwa chuan is a Merger n Acquisition specialist for land investment and development. He is Director of B.I.G group of companies, an organization specializes in property development, investment, real estate advisory, merger and acquisition. He develops and fine tunes his methods and making him one of reliable real estate partners in Malaysia today. His MnA daily job scopes cover; Business development and marketing for Property Development. Sourcing land, government study, market study, draft design, preparing feasibility study and cashflow for property development. Grouping for enblock marketing to ease the cashflow of a property development. Due to his nature of jobs, Tan always has the opportunities to get good properties before launching or below market value. Tan graduated from Warwick University, UK, in master of science in engineering business management. He was top student with flying color results. He is shareholder / director for a few property development projects n companies. Sunway Eastwood sb – 33ac. 259 units Semi D. Gdv = Rm 370mil. Completed. Mitraland Melawati sb – 9ac. 100 units Residential. Gdv = Rm 220 mil. Completed. 7.8ac Commercial Land in Setia Alam. 9ac JV land in Semenyih. A few others He is the Author for a popular book, Make BIG Money via Land. More info www.bigproperties.com.my Feasibility Study Tan Hwa Chuan Copyright of B.I.G Plots SB AGENDA • LAND Investmment Vs Development Vs Joint Venture – LOAN STRATEGY – Main Con Strategy – Land Cost Strategy – New Funding Strategy • Next Hot Land Feasibility Study Tan Hwa Chuan Copyright of B.I.G Plots SB SALE Loan Strategy COST MAIN CONTRACTOR Strategy LAND COST Payment terms FINANCING Funding Strategy PROFIT Working Cap Feasibility Study Tan Hwa Chuan Copyright of B.I.G Plots SB PROFIT LAND FOR SALE (KL) JALAN IPOH 4.3 ACRES (2009) Feasibility Study Tan Hwa Chuan Copyright of B.I.G Plots SB Sri Damansara DESA PARK Subject Land New Carefour KTM STATION Jaya • Mall Jusco • Kepong – Chinese village • Batu caves Feasibility Study Tan Hwa Chuan Copyright of B.I.G Plots SB MONT KIARA Selayang kepong 90% COMPLETED 100% 100% COMPLETED 80% COMPLETED COMPLETED TESCO 8 acres Shops Lake Main Access Subject Land • Old town • jam Feasibility Study Tan Hwa Chuan Copyright of B.I.G Plots SB Water ? Implication? Implication? Feasibility Study Tan Hwa Chuan Copyright of B.I.G Plots SB Lake View Lake View Middle Ring Road To Wan Utama Lake View KLCC Subject Land View (Adjoining Lake) Lake Lake View View How to draw? Ipoh Jalan To Jalan Kuching Jalan To Tmn Tasik Indah Lake New KTM View Station Feasibility Study Tan Hwa Chuan Copyright of B.I.G Plots SB Color code? Subject Land Tesco Jalan IPOH Jalan Jalan Kuching Jalan Feasibility Study Tan Hwa Chuan Copyright of B.I.G Plots SB Jalan Ipoh Land – Sri Utara 2009 . 4.3 acres. Leasehold 99 . Fronting and Adjoining Lake (size approx 8 acres) . Tesco is located nearby (walking 5 mins, driving 1 min) . 2 min driving to new KTM Station (located in Taman Wahyu n Tmn Mastiara) . Walking distance to amenities. (banks, old town kopitiam, restaurants. offices) . Neighbouring are SEMI D, Super Links . 7 acres of landscape and jogging track surround this land, lake and township . Subject Land can access to Jln Kuching via Jln Ipoh Main road or via Alternative Road (Tmn Wahyu exit at TNB Jinjang) to Jln Kuching. Converted Development Land. RM 82 psf (negotiable) = RM 15.36 mil. Feasibility Study Tan Hwa Chuan Copyright of B.I.G Plots SB Distance Analysis 10 mins to Wan Utama, The Curve, Mutiara Damansara, Taman Tun, Petaling Utara. 5 mins to Sri Hartamas. Mont Kiara 8 km to KLCC (10 to 13 mins driving) Easy Access Highway; 2 mins to Jalan Kuching via Jalan Ipoh 1 min to Middle Ring Road 8 min to LDP highway via Middle Ring Road 80km / 60 min 5 min to NKVE Jln Kuching or Middle Ring Road 10km = Development Order obtained (lapsed) for; 336 orang per ac. (66 unit per acre) 3 blocks of Condo = 284 units Condo 10 storey (76 units) 13 storey (100 units) 18 storey (108 units) Ready with infra; Tar Road access (80’ road access) Water Supply Electricity tap point Oxidation infra Back filling is done 10 years ago. etc. Feasibility Study Tan Hwa Chuan Copyright of B.I.G Plots SB Pricing Factors; 2009 SUBSALE Sri Utara . Semi D = approx RM 1 mil (approx 3.5k sqf) . Super link = RM 640k per unit (approx 3k sqf) . Gated community. Approx RM 170 per month. Townhouse = RM 350k . (1600 sqf) (Subsale price) (no facilities) . Launched 3 years ago. .All Leasehold 99 Taman Tasik Indah; . RM 640k (3k sqf) (Subsale price) HALF PRICE STRATEGY . Completed 5 years ago . Gated community . All Leasehold 99 Feasibility Study Tan Hwa Chuan Copyright of B.I.G Plots SB High End SEMI D Landscape 80’ Road 8 acre Lake + Park Main road Acess From Jln Ipoh (Jln Kuching) Feasibility Study Tan Hwa Chuan Copyright of B.I.G Plots SB NOT MRR II SUBJECT LAND 8 acre Lake SUBJECT LAND SUBJECT LAND Feasibility Study Tan Hwa Chuan Copyright of B.I.G Plots SB Brand New Super Link Houses Water tank Can be tapped Subject Land Subject Land Feasibility Study Tan Hwa Chuan Copyright of B.I.G Plots SB New Super Link Houses 80’ ROAD ACCESS TO THIS LAND - Brand New Infra - road, lights, surroundings Feasibility Study Tan Hwa Chuan Copyright of B.I.G Plots SB - 5 mins walking distance (1 min) to TESCO. Shoppers? Adjoining sri Utara = 90% Chinese Feasibility Study Tan Hwa Chuan Copyright of B.I.G Plots SB - Subject land located within 72 acres Sri Utara Township - All gated community. Feasibility Study - 7Tan acres Hwa Open Chuan Park (Landscape) surroundedCopyright of this B.I.G 72 acresPlots Township SB . Surrendered to dbkl? DBKL 2020 CITY DRAT PLAN • Draft Plan is welcome for changes. • Malaysia Boleh! Feasibility Study Tan Hwa Chuan Copyright of B.I.G Plots SB SUPER LINKHOUSES Feasibility Study Tan Hwa Chuan Copyright of B.I.G Plots SB Pls refer to R3 Table Feasibility Study Tan Hwa Chuan Copyright of B.I.G Plots SB DBKL Requirements (Under New KL 2020 Draft Plan); . Subject Land is under R3 Residential. 160 persons to 400 persons per acre = max 100 units per ac . No height control . Pls check with KL Draft Plan for R3 Classification Table. Zoning is not Gazette, thus it is possible to be dezoned for other purposes Feasibility Study Tan Hwa Chuan Copyright of B.I.G Plots SB Feasibility Study Tan Hwa Chuan Copyright of B.I.G Plots SB Feasibility Study Tan Hwa Chuan Copyright of B.I.G Plots SB TITLE Feasibility Study Tan Hwa Chuan Copyright of B.I.G Plots SB Feasibility Study Tan Hwa Chuan Copyright of B.I.G Plots SB DIMENSION Feasibility Study Tan Hwa Chuan Copyright of B.I.G Plots SB Feasibility Study Tan Hwa Chuan Copyright of B.I.G Plots SB Your text here Feasibility Study Tan Hwa Chuan Copyright of B.I.G Plots SB Market STUDY Bandar Menjalara (Kepong) Feasibility Study Tan Hwa Chuan Copyright of B.I.G Plots SB Sri Damansara Apartment Medan Putra Apartment Manjalara Apartment - Subsale RM 150 psf -RM 170 psf (new launch) - RM 150 psf sub sale - Complete mid 09 4 acre Lake Jaya Jusco North Shore Condo Nadia Condo Why Same Area Different Pricing? -RM 550 psf (new) -RM 450 psf subsale - Launched in 2008 Jan - Lake View - Sold 90% within 2 mths - Near Jusco Feasibility Study - Lake View - Completed in 2005 Tan Hwa Chuan Copyright of B.I.G Plots SB - Complete in 2011. Case Study Conclustion Why Desa Park can fetch RM 550 psf? While Medium Class Menjalara is RM 170 psf? • Lake (4 acre) View condo • Walking distance to Jaya Jusco • Gated + Guarded community • Nice landscape Similarity in Sri Utara Land • Lake View condo (adjoining 8 acre lake) • Walking distance to TESCO • Gated + Guarded community • Not too bad landscape environment • RM 250 psf in Batu Caves and Selayang area. • Can we fetch RM 330 psf in Sri Utara? HuaYang Symphony • Rm 250k / 1100sf = 227psf (adjoining TNB) Feasibility Study Tan Hwa Chuan Copyright of B.I.G Plots SB QUICK FEASI (2010) Feasibility Study Tan Hwa Chuan Copyright of B.I.G Plots SB QUICK FEASI = CONDO (2010) GDV = RM 320 psf x 1300 sqf x 80 units x 4.3 acres = RM 143 mil (RM 416k per unit) Net Profit @ 20% = RM 29 mil Land Cost = RM 15 mil @ RM 80 psf (negotiable) Note: Subsale link house in Taman Tasik Indah = RM 640k per unit Subsale link house in Sri Utara = RM 650k per unit Feasibility Study Tan Hwa Chuan Copyright of B.I.G Plots SB QUICK FEASI = SEMI D GDV = 8 units x 4.3 acres = 32 units = Unit price = Rm 580psf x 3500 = Rm 2. mil = RM 2 mil x 32 = RM 64 mil Net Profit @ 20% = RM 12.8 mil Land Cost = RM 15 mil @ RM 80 psf (negotiable) Note: Subsale link house in Taman Tasik Indah = RM 640k per unit Subsale link house in Sri Utara = RM 650k per unit Feasibility Study Tan Hwa Chuan Copyright of B.I.G Plots SB Market Study (2015) Feasibility Study Tan Hwa Chuan Copyright of B.I.G Plots SB Lakeville Residence - 2015 • Land Area : 12.38 acre • Leasehold • 6 Blocks of Residential • 37 to 41 storey • Total 1800 units = 150 units per ac (if resi) • Landscape & facilities 3 acre • 2 car park • Built-up area 977 to 1,329 sq ft = average 1150sf x 1800 units • NSA = 2 mil sf • GFA = 2 mil sf / 73% = 2.74 mil sf • 2.74mil / Land area = 5.0 Plot ratio • Completion Aug 2018 • 977 sq ft @ Price RM600,000 • Phase 1 Blocks A & B – RM570psf • Phase 2 Block E – RM650psf @ 30% sold since June to July 2015 • Block F – RM650psf @ 80% sold since Nov 2014 to July 2015 • Package Discount 10% Feasibility Study Tan Hwa Chuan Copyright of B.I.G Plots SB Eco Sky by Eco World - 2015 • Land Area: 9.6 acres • Freehold.