Property Review: Sang Sarang Resort, Lumut

R
Property Review Vol. 2
www.AllEstateWealth.com
Review Date: Nov 2015
Property Review: Sang Sarang Resort, Lumut
INSIDE THIS REVIEW:
Project Fact Sheet
Project Fact Sheet
Overall Development
Location and Accessibility
Areas Study
Price Analysis
Developer Background
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Land Area: 4.67 Acres
Tenure: Leasehold
Expected Completion: End 2017
Total Units:
o 7 Unique Forest Villa
o 269 Luxurious serviced
apartments
Size
o Suites (382 sq. ft.)
o 1Room 1Bath (786 - 841 sq.ft.)
o 2Rooms 1Bath (1,271 sq.ft.)
o Dual Key Suites (1,445 –
1,561sq.ft.)
o 3Rooms 2 Bath (1,824 sq.ft.)
Selling Price from
o 1 Room : RM 593,000
Villa: RM 1.5 million
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Price Per Square Feet (psf): RM 937
SWOT Analysis
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Development Concept
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4-star Hotel
Similar like Club Med concept
Sea View Hotel
Facilities
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Cocoon Lounge & Bar
5 Swimming Pools
1 Private Brook
1 Waterfall
Artificial beach
Promotion Package
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Guarantee Rental Return
st
1 5 years: 6% p.a.
Renewal Terms (5 years) :
100% Profit Sharing on Net
Profit
Fully Furnished
Booking RM 10,000
Disclaimer
This report is provided for information purposes only. It is not a complete analysis of every
material fact respecting any company, industry, security or investment. Opinions expressed
are subject to change without notice. The company accepts no liability whatsoever for any
direct or consequential loss arising from the use of this report or its contents. This report
may not be reproduced, distributed or published by any recipient for any purpose.
Page 2
Project Review: Sang Sarang Resort, Lumut
Location & Accessibility
Lumut is 170km south of Butterworth
and 83km southwest of Ipoh, the main
turn-off for Lumut on KL-Butterworth
road. If you travel from Ipoh, it is
estimated 45minitus driving distance. If
you travel from KL, it is estimated 3hour
driving distance. Another alternative is
The West Coast Expressway which
currently under construction and
expected completion in 2018. Besides,
you may consider being there by taking
public transportations like railway and
buses.
Area Study
“Property
investment is
about Location,
Location, and
Location!”
Lumut is departure
point for Pangkor
Island, and most
visitors see letter
beyond the bus
station and ferry
terminal.
The Malaysia Navy
has its principle
base just outside
town and sailors
make
up
the
overwhelming majority of the town’s inhabitants. Furthermore, waterfront Recreation
Park on the northern side of the town, near the yacht club and some decent out of
town beaches, Lumut is not much else.
However, Lumut is next to rapid growth area – Manjung. It is the mature township
development where most of the facilities and amenities are ready to citizen.
Furthermore, it is also commercial centre where of the business activities could be
found here. One of the big projects in Manjung is Lumut Port which is one of the
alternative ports located in between Penang Port and Port Klang. Due to its strategy
location, it attracts many manufacturers and MNCs to set up their factories in the
Lumut Industrial Park.
At the same time, there is another mega development – Marina Island located within
5km from Lumut town. This mega project consists of theme park, jetty complex,
commercial and residential development and conventional centre. Their jetty complex
provide jetty to Pangkor Island as well. This mega development may replace Lumut
in future.
Project Review: Sang Sarang Resort, Lumut
Page 3
Price Analysis
Property Price
In terms of Guarantee Rental Return (GRR) Scheme projects comparison, Sang Sarang Resort is
pricy. It is asking RM average RM900 psf while other GRR projects asking price below RM 900.
Rental Market (Hotel Rate)
Currently there few 4-star hotels in Lumut, the average room rate per night during non peak
season is asking for RM 250. Sang Sarang Lumut Resort is going to have Mini Club Med
concept and target room rate per night RM 700 onwards.
Developer – KB Group
Base on my survey, previously they known as Zaj Development, thereafter changed to RK Group
and most recently become KB Group. Furthermore, one of their delayed project, Axis Crown is
not appear in their company website but found in Propwall.com
Past Projects:
The Matrix, Kinta Towers, Sitiawan Sentre, Axis Crown (Delayed Project)
Website: www.kbgroup.com.my
SWOT Analysis
Strength
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st
1 conceptual hotel – compare with others hotel, Sang Sarang Lumut Resort’s position is
great. Its development concept is new in Lumut.
Hassle Free Investment – they are offering Guarantee Rental Return Scheme to investors.
st
Investors could enjoy the fixed rental income for 1 term and profit sharing in renewal
terms.
Weakness
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Pricy – with the asking price of RM 900 psf, investors could choose to enter prime areas in
Penang Island, or Klang Valley areas like Kota Damansara, Bangsar, and Petaling Jaya.
Location – Lumut used to be a stop before entering Pulau Island, majority visitors spend
their time to island rather than Lumut. There are some outdoor activities available in
Lumut but the option is limited compare with Island.
Track Record – this is first time developer offer GRR projects and no track record found.
How trustworthy of the developer is big question mark.
Risk of Leasing Agreement Termination – it is common in GRR projects where developers
reserve the right to terminate the projects.
Opportunity
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Growing district – the number of visitors to Pangkor Island is increasing every year. The
number of budget hotels and home stay services showed the demand of accommodation
New concept – the concept of Mini Club Med is new in Lumut. It may attract western
country visitors to check in there.
Local Authority Support – according to latest state development plan. Lumut will heavily
focus on Tourism industry. Promotion of visit Ipoh aggressively push out to market.
“Never 100% listen
to Salesperson.
Always do your
homework!”
Page 4
Blue Moon
Management
Project Review: Sang Sarang Resort, Lumut
Threat
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Impact of Emerging Market –visitors are given another alternative to enter Pangkor
Island – from Marina Island travel to Pangkor Island.
Conclusion
T: 6012 279 0150
E: [email protected]
Find out more at
www.allestatewealth.com
This is business opportunity rather than property investment. The attractive of this project is
offering a hassle free investment opportunity to investors. Besides, Sang Sarang Resort is the
first conceptual hotel in Lumut, there is a potential of capital growth.
However, it is high risk investment opportunities. Lumut have limited attraction to local
tourism, it is a stop before entering main attraction, Pangkor Island. Meanwhile, their asking
price is very pricy (RM 900 psf). With similar pricing, there are many options available in prime
areas like Penang, Klang Valley and Johor Bahru. There are 2 key success of any guarantee
return project are developer and management company. But these 2 keys factors are beyond
investors’ control. Since then, GRR project is high uncertainly.
About Author
Samuel Sing (Blogger & real estate agent)
Samuel is in real estate industry for past 9 years. He used to be a marketer and salesperson
for developers. After 7 years working for developers, he quit his job and become self
employee. He likes to analysis different kind of property investment opportunities. He is now
sharing his analysis on upcoming development for others to make better investment
decision.