T: The Lure Of Iskandar – Part 3

IN our series under the Iskandar Development, this week we put the spotlight on Pengerang, located in the fifth sector under the Iskandar Development Region, also known as the Eastern Gate Development Zone covering the Pasir Gudang port and industrial zone, Tanjung Langsat port and technology park, plus the Kim-Kim regional distribution centre.

Situated within the zone is the Pengerang Integrated Petroleum Complex, the mega project reported to cost some RM60 billion, which is also expected to boost demand for properties in and around that area.
Reports claim that this project which is aimed at attracting global petroleum investors to become Asia’s top most petrochemical hub will turn Pengerang into a boom town. So, property investors and purchasers, start doing your homework if you have not already.

Population magnet

It is beyond doubt that good land DNA is sine qua non when buying property, especially as an investment. Thus, we highlight a couple of “elements” that will help put this once “sleepy coastal town in a far-flung location” on to the global map. Pengerang and its surrounding areas are rapidly gaining popularity and a step towards changing the economic scene in the area. Here are some mega projects that help put Pengerang into the spotlight:

A] One of the reasons for the rise of Pengerang is the mega project within the Pengerang Integrated Petroleum Complexx (PIPC) called the Refinery and Petrochemical Integrated Development (Rapid) project by Petronas, reported to cover some 2,000 hectares of land. The project is a key element in the nation’s Economic Transformation Plan (ETP). Besides raising the quality of life in that area, the project is also expected to create thousands of jobs and boost income levels in the surrounding.

B] According to reports, Phase 1 consisting of the RM5 billion Pengerang Independent Deep Water Petroleum Terminal (PIDPT), situated within the PIPC, is completed and many vessels have since been using the terminal. Moreover, a refinery to support the Rapid project will create even more jobs, thus enhance property values and increase the quality of life for the people in the area.

C] Complementing the Rapid refinery is the Pengerang Petroleum and Maritime Industrial Park, covering some 1,760 acres, already in the pipeline.

D] i-Parc@Tanjung Pelepas is said to serve both the Malaysian and Singaporean small manufacturing entrepreises (SMEs) and multi-national corporations (MNCs), further creating more jobs, thus raising economic levels and the quality of life in and around that area.

E] The Johor Halal Park in Pasir Gudang is a RM1.5 billion project that hopes to draw more investors to the area.

Property in the area

As more and more jobs are being created and the laid-back scene in Pengerang goes through change,
the idyllic slow-paced kampung life in that part of the country takes a turn. Once only cycling and motor racing enthusiasts visited the nearby Pasir Gudang area and might have stopped over this sleepy hollow, now, the population is slowly and steadily growing. That said, here are a few areas in and around Pengerang offering accommodation, as well as residential, industrial, commercial and agricultural land.

1] Taman Desaru Utama and Taman Desaru Mutiara

2] Sebana Cove

3] Taman Ramunia Indah and Teluk Ramunia

4] Sungai Rengit

5] Lepau

6] Tanjung Sepang

7] Batu Buloh

8] Pantai Timur

9] Bukit Gelugor

10] Pulau Jenuang

Good land DNA

According to the author of Make Big Money via Land and property expert Tan Hwa Chuan’s good land DNA checklist, Pengerang ticks all the boxes. Moreover, it is situated right next to Singapore, where property prices are way above ours. Now with the amount of attractions over on our side of the cross over, the fact that Pengerang is situated right next to neighbouring Singapore, makes it even more appealing.
If Malaysia plays its cards right and keeps to deadlines and commitments, maintains good ties with our neighbours and sees to global standards of upkeep in all the above mentioned projects, why wouldn’t Iskandar Malaysia be anything but a jewel in the south?

Pengerang – strategic location
>> Access to existing major international shipping lanes
– Middle East – Singapore – China;

>> Close proximity to an existing major trading hub;

>> Adjacent to Singapore;

>> Deep water of 24m enables VLCCs and ULCCs to use port facilities;

>> Very few environmentally sensitive areas (ESAs) which are easily preserved;

>> Low negative socioeconomic impact;

>> Relatively unpopulated, leading to minimal population relocation;

>> Safe and sheltered harbour;

>> No breakwater required with sufficient sea-going passage for VLCCs and ULCCs;

>> Availability of sufficient development land; and

>> A single candidate plot in excess of 20,000ha

Quick rule of thumb from the mentioned book

i) Gross development value (GDV) is the total sale of the entire development (as an example).

ii) Total construction costs include building construction costs, infrastructure and contingency costs. These should total to 40% to 50% of GDV.

iii) Land cost should come up to 20% to 30% of the GDV.

iv)Profit can be calculated if you minused the costs (ii and iii) from GDV (i).

–THE SUN DAILY