Alam Avenue 2

Hi ,

We are approached by the developer’s marketer to promote this project, which is still under construction.

FAQ answered by the project marketing team:

1. Booking fees is 2% of the purchase price payable to the developer and it can be paid by credit card.

2.The end-financiers would be Maybank, CIMB Bank, Public Bank, RHB Bank, Ambank, UOB Bank and Hong Leong Bank. Purchasers do not have to serve any instalment and interest until the project is completed. The project is scheduled to be completed in April 2012.

3. The developer will pay the legal fees for the SPA whereas the stamp duty will be borne by the purchaser.

4. Expected rental:

a) 3sty ( 22×75 ) – Ground Floor ( Rm7K )

• - 1st Floor ( Rm4K )
• - 2nd Floor ( Rm3K )

b) 5sty Corner ( 27×75 ) with Lift – Ground Floor ( Rm12K )

• - 1st Floor ( Rm5.5K – Rm6K )
• - 2nd Floor ( Rm4.5K )
• - 3rd Floor ( Rm3.5K – Rm4K )
• - 4th Floor ( Rm1.5K – Rm2K ).

5. LOCATION: The site is 1 to 2 mins away from Federal highway and 10 mins to Klang I-City. The project is nearer to Klang area. The site is just opposite puspakom/JPJ where I believe can attract crowd. Phase 1 (which is just across the road) has been fully sold and we have 7-11, RHB Bank, Speed 99 Convenience Store and a medical centre (coming in) in phase 1. MBO Cineplex (which is the 1st in Shah Alam) and KFC will also be in phase 2. The area is booming.

6. One of the residential nearby would be Ken Rimba developed by Ken Holdings Group (developer for Ken Bangsar, Ken TTDI, Ken 1 & 2 in Petaling Jaya). Ken Rimba is a residential project for middle class. There is also industrial area nearby.

7.There is also a KTM Station in that area.

8. This is a freehold investment.

9. 5-storey units is facilitated with lift.

8. The developer is IRDK Land Sdn Bhd which is one of the company in IRDK Group. The Group MD is Dato Sri Dr. M.P Ramasamy and the group Chairman is Tengku Sulaiman Shah (The brother of Selangor Sultan, one of the founders of Syarikat Pembinaan Setia (Now known as SP Setia), board member of KFC Holdings). They have developed a few projects and their coming up project will be in Wangsa Maju, Puchong and also Johor Bahru. We can also co-operate for some future projects.

 

Comment from OngKL

Below is what OngKL found after doing some research of the area and calling several agents:

1. The location is good and the neighbourhood is mainly Malays and Indians. Most retailers are Malay stores because of the conservative policy by town council of Shah Alam.

2. The area is surrounded by several industrial parks and only a few numbers of residential estate. Not a good sign for retail business as the business will be very quiet at night.

3. Based on market rent in the area and the list price provided by the marketer, annual rental return is expected between 3%-4%. However, there are a lot of vacant units there because Alam Avenue 1, which is located just opposite Alam Avenue 2, just completed this year (2011) and there are still many units yet to be rented out.

4. Compared to other older shops in the same area, the average selling price of Alam Avenue 2 is more than 50% higher yet the expected rental income is not proportion to the difference in selling prices. So, it may be more sensible to invest in old shop which delivers higher rental yield.

Of course, if there are some new developments nearby the area which grow the economy there, such as new traffic/public transport system or new town/commercial projects, then the above fact may change in favour to the project Alam Avenue 2.