LAND PROCUREMENT

Land acquisition

STATE LAND?

1. LAND ALIENATION APPLICATION

Application can be made to SA for land alienation.
If gain approval, land only can be alienated for 99 years.
State is not empowered to alienated state land to private individual or corp in
Perpetuity.
SA will issued the title with or without express condition
Before the title is issued – applicant need to pay PREMIUM.
Premium is based on the valuation of land by Valuation & Property Services
Department.
Based on Market Value (percentage)

2. PRIVATIZATION
Dev asked to construct the facilities needed by the gov
Which includes infra, technical building, non technical building – housing & training
facilties.
All the things that mentioned above will handed over to Gov after completion
In order to pay/ response to dev act, gov will hand over the Gov Land
Dev can development the Gov Land on their own decision or requirement.
Cost of built facilities = value land handed over to dev
Value of transferred land will determine by TENDER OUT by Eco Planning Unit
Will be valued again by JPPH.
Land that being transfer usually have VERY HIGH COMMERCIAL VALUE
Advantages to dev – for development.
Ie : - Mutiara Damansara
Ministry if defense project.
Privatizing RM 1BILLION to Lembaga Tabung Angkatan Tentera (LTAT)
Board JV with property developer – Boustead Holdings Sdn Bhd
Mutiara Damansara – construction of various residential & commercial properties
started in 1995.
In return, LTAT will build 2,000 residential unit for armed forces personel
60 % from 728 (Low & medium cost houses) for former army personel
15 units at the Curved to be rented for former army.
DAMANSARA DAMAI (Bandar Baru Sg. Buloh)
Develop by EMKAY
1ST ever large scale privatized property in Selangor state
Was to create a planned township in accordance to NEP
Create opportunities for Bumiputras (son of the soil)
As a result, not only homes were built but they create communities.
 PRIVATE LAND?

1. OUTRIGHT SALE/ TENDER

A sale of property in which prospective buyer submit offers
Based on the current MV of subject land
Basis MV – willing buyer, willing seller
Buyer will evaluate the profitability & time to complete the task before signing any
agreement

2. JOINT VENTURE
Contractual agreement between two or more company
For business purposes
All parties agree to share the profits & losses of the project
Will form NEW FIRM to achieve the objective
Slightly different with partnership
Partnership involve long term business/ongoing
Jv is sometime only for single business activity.
Jv normally formed to combine a strengths
Advantages of JV
- Reduce the risk by using partner’s assest
- Resources that are adequate
- Access for borrowing powers
- Able to obtain a lots of new knowledge from partner
Disadvantages
- Equity problems
- Operational control
- Distribution of profit
3. LEASE

4. PUBLIC-PRIVATE PARTNERSHIP
In Malaysia demand for public services is increasing.
 Insufficient public sector capital to meet this demand has derived to unbalanced gap
in investment
To overcome the gap, gov introduce PPPs
Main objective – securing investment & greater efficiency in delivery of public infra,
facilities & services.
This partnership is sharing of – investment, risks, reward, & responsibilities ( 1I, 3 R’S)
Advantages :-
PPP allows public sector to access new sources of finance
Raise additional financial in budget restrictions.
Public sector able to gain a benefits – private sector skills & management. – can
reduce cost & generate greater value of public asset.
Increase quality to the public
Speed up infra development
Allow private sector freedom to deliver efficient solutions
Contract between public sector & private party
Private party prepare public services, technical & operational risks
Between gov n two or more private companies

5. MERGER/ TAKEOUT
Combine two separate firms into single legal entity.
Can improve company performance & share holder over long term
Can experience boosted economies of scale,
Greater sales revenue
Broad diversification & increases tax efficiency
Combined business (structural & operational advantages)
Cut the cost, increase profit
Company complement each other
MERGER MANIA IN MALAYSIA
- UEM Land Bhd proposed merger with Sunrise Bhd,
- UEM has a huge area if land in Iskandar Malaysia
- But in terms of reputation as builder, UEM is behind the established player in
market
- Merging with Sunrise- has reputation on building high end luxury homes
- Therefore, the skill gap would be filled.
- MRCB & IJM LAND
- MRCB entrusted to develop huge Sungai Buloh land – short in terms if having
skills to build mass housing.
- Highest profile for MRCB is developer of KL SENTRAL
- For JIM – merger with MRCB will open doors for construction giant to get into
large housing market
- Also have a chance to get involved in gov related job.
- MALAYSIAN RESOURCES + IJM LAND
- IJM land involved in township development , Malaysian Resources is known for
its high rise office project.
 - The combined companies,
- Which will have 7 billion market capitalization,
- 9,000 acres of land bank & asset more than 3 billion ringgit.
- Merged group will become one of the LEADING LISTED PROOPERTY DEVELOP
- Larger land bank.
THE BIGGER YOU ARE, THE MORE INVESTOR INTEREST WILL FOLLOW YOUR WAY
Enlarged companies are able to extract more from existing land bank.

6. ACUTION
7. LAND RE-ADJUSTMENT
An alternative method of land deve
Group of land parcel which has been developed are left out its rapid surrounding
dev.
Is rearrange to provide adequate public utilities & public facilities.
Thru cooperation & agreement of landowners
Land that been contributed to project – land owners will receive returns in the form
of property.
Part of land contributed is converted into – as financial lands, & shall be sold recover
part of project cost
Other part will contributed for provision of public utilities & facilities.

A feasibility study was undertaken in 1993 indicates the LR as an urban development

method is socially, economically & institutionally feasible in Malaysia.
LR would provide an effective & sound model for build better cities
no financial risk – they do not have to purchase & finance the original plots.
Because LR is just plot exchange method.
8. LAND ACQUISTION
According to LAND ACQUISTION ACT 1960
SECTION 3 (1) (B) (C)