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MERCU MAYA REALTY CONSULTANTS SDN BHD

A FEASIBILITY STUDY ON LOT NO 948,


MUKIM OF SUNGAI KARANG, DISTRICT OF KUANTAN
PAHANG DARUL MAKMUR
FOR THE PROPOSED OF RESORT DEVELOPMENT

1.0 GENERAL

1.1 TERM OF REFERENCE : We have been instructed by Tuan Hj. Baharudin Hj. Mohd Hanipah to undertake a
Feasibility Study of a proposed hotel and commercial development on Lot 948, Mukim
Sungai Karang, Beserah, District of Kuantan, Pahang Darul Makmur.

We have accordingly inspected the proposed site on 15th February 2007 herein be the
valuation date and gathered other relevant information to arrive at our conclusion based
on the project’s feasibility analysis of the proposed resort development.

We are now pleased to submit herein our report.

1.2 PREFACE : Pursuant to our client’s instruction, the primary data in this Feasibility Study is derived
from continuous consultations and dialogue sessions with the relevant government
agencies particularly Majlis Perbandaran Kuantan, Jabatan Penilaian & Perkhidmatan
Harta (JPPH) Pahang, Pahang Tourism, quasi government bodies, other local private

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developers and selected hotels. The policies, proposals and views of the said agencies
are duly incorporated in this Feasibility Study.

It is pertinent to note that despite efforts taken to ensure the accuracy of the information
collected, differing opinions of authorities have been carefully analyzed and redundant
information eliminated in the course of our own interpretation of facts and findings. This
feasibility report covers details of the site in terms of its title particulars, location,
description, development contents, town planning, planning regulations and zoning. The
report also embraces in brief the site analysis
and its assessment in terms of road patterns and traffic access, public utilities and
assessment on site potentiality for the proposed residential development.

The project costs brief and explanatory notes on the construction costs, preliminary,
contingencies, and professional fees are duly covered. The sales values or selling prices
as shown on the cash flow are based on the current market conditions. The study also
covers out interpretations of the financial; calculations of project revenue and costs
including risk analysis and risk minimization measures. The conclusion part of the study
embraces our opinion, views and recommendations on the viability of the proposed
project having regard to the present economic climate and the property market.

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1.3 OBJECTIVE OF STUDY : This Feasibility Study is an essential pre-requisite for successful undertaking of this
proposed development based on our views and recommendations especially in
economic and urbanization era.

Premised on the purpose of this Feasibility Study, the objectives of the report is fold
assessment of location advantage, suitability and potentiality of the site for the proposed
development.

1.4 SCOPE OF STUDY : The study would be cover by Kuantan locality. The subject site is located within Beserah
whereby under Majlis Perbandaran Kuantan as local authority. It will also cover the surrounding areas between 10 to 20 kilometers
radius from the subject development in general.

This feasibility study consists of the following scope of work:-

1.4.1To analysis the accessibility of the site and to investigate the availability of the
project.

1.4.2To overview the tourism sector in the Beserah surrounding area including others
area and socio economic trend of Kuantan and neighborhoods areas.

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1.4.3Conduct surveys on the analysis of demand and supply of hotel accommodations


within the study area. It will also cover the room rates for hotel, occupancy rates,
rating, facilities provided and other relevant information of selected hotels in the
study area and others if there is a necessity.

1.4.4To determine the shape and layout of the proposed project should take and how it
should be implemented and marketed.

1.4.5Advice on the feasibility and viability on the proposed development based on cash
flow analysis, assessment all relevant market condition and existing statutory
provisions.

1.4.6This report have been covered on the concept and general areas included physical
issues and restriction, the proposed concept and design philosophy, planning factors
and criteria and lastly land use development.

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1.5 METHODOLOGY : We have been taken a systematically ways to gather overall data, information, figures
and graph as a guideline to estimate the forecast figures. The steps that we carried out
as below: -

1.5.1Through the available data such as broacher, publication, pamphlet, references


book, and relevant material.

1.5.2Searches and enquiries have been made at developers and agents office to check
on major projects being undertaken in and around the study area to establish the
matters such as types of development, take-up rates, prices achieved and other
information pertinent of these presents.

1.5.3Physical investigation of proposed site, its surrounding (existing development),


accessibility, facilities and utilities to determine the suitability of the project site for the
purposed project.

1.5.4We were also doing interviews, searches and inquiries to relevant parties such as
Kuantan Land Office, Planning Department of Majlis Perbandaran Kuantan, Jabatan
Ukur & Pemetaan Malaysia (JUPEM) Kuantan, Institute of Surveyor Malaysia (ISM),
Pahang Tourism Information Center and Jabatan Penilaian Dan Pengurusan Harta
Tanah (JPPH).

1.5.5Additionally information’s gathered from numerous resources.

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1.6 LIMITING CONDITIONS : The following are the limitations of our study:-

1.1. This report is confidential to the Client to whom it is addressed. It may be disclosed
to other professional consultant advising the Client in respect of that purpose, but
the Client shall not be disclosed the report to any person.

1.2. All opinion of value expressed in this report applies are strictly upon the terms of
and for the purpose of this Report only. The valuer is therefore not responsible for it
quoted out of context.

1.3. Neither the whole nor any part of this report/certificates or any reference thereto
may be included in any published document, circular or statement nor published in
any way without the valuer’s written approval of the form and context in which it may
appear.

1.4. Though the property was inspected, we are not able to state the crops are free of
vermin, soil diseases. We have not carried out a chemical analysis of the soil nor
other investigations to ascertain the soil suitability for the present or other
cultivation. Therefore, we are not able to accept any responsibility with regard to
latent infestation and defects of soil and diseases, which affect crops.

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1.5. While we have inspected the title of the property as recorded by the Land registry,
we cannot accept any responsibility for its legal validity or any liabilities against the
property which were unrecorded at the time of our inspection.

1.6. The instruction and the valuation assignment do not automatically bind the valuer to
attendance in court or appear in enquiry before any government or statutory bodies
in connection with the valuation. Prior arrangement and agreement shall be made
between client and valuer if such attendance or appearance is required.

1.7. As is normal with studies of the nature, our findings and conclusions are based on
information made available to us at the time of this study. Even though this report
has been taken foresee future market trends, we shall not be liable of the
recommendations given are not applicable due to prevailing market condition at any
future date.

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2.0 SITE /LOCATIONAL FEASIBILITY

2.1 DATE OF INSPECTION : We have inspected the subject site and surrounding area on 22th February 2007.

2.2 LOCATIONAL FEASIBILITY

2.2.1 Location : The subject is under Majlis Perbandaran Kuantan and it is located approximately 2 km
north of Kuantan City, Airport as the regional transport hub. Beserah is connected via Kuantan-Kemaman Road and
Lebuhraya Pantai Timur. The location is as on the Appendix of the location plan.

2.2.2 Subject Property : The subject property is as edged red in the site plan containing of approximately 4.7
acres which actually known as Lot PT 948. We proposed to develop this land for
commercial development. It is noted that it lies within the zoning for business and
services in Beserah and District of Kuantan

2.2.3 Surrounding : The surrounding area of the subject property is generally developed with a variety of
development is situated 1500 m from the subject property.

The neighborhood could be divided an as:

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Offices
• Wisma Persekutuan
• High Court

• Majlis Perbandaran Kuantan

• Private Office

Commercials
• Megamall Shopping Complex
• Shop Office

• Hotels and Resort

• Petrol Station
• Terminal Makmur( Bus Terminal)
• Komplek Teruntum
• Kuantan Plaza

Institution
• Institut Kemajuan Ikhtisas Pahang (IKIP)
• Universiti Malaysia Pahang
• Universiti Islam Antarabangsa Malaysia

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Residential
• Apartment
• Condominium
• Terrace House
• Semi-Detached House
• Detached House
• Cluster Town House
• Terrace Dual Occupation/Shared Title
• Elevated House
• Shophouse
• Headquarters/Hostels

Public Amenities
• State Mosque

• City Command Centre


• Neighbourhood Centre
• Multipurpose Hall
• Public Libraries

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Health
• Hospital Tengku Ampuan Afzan

• Health Clinic and Private Hospital (Kuantan Medical Centre)


Safety and Security
• Fire Station
• Police Station
• Police Marine

Industrial
• Gebeng Industrial
• Jaya Gading
• Gambang

Recreation Place
• Telok Cempedak Beach
• Batu Hitam Beach
• Balok Beach
• Cherating
• Sepat Beach

• Tanjung Lumpur

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2.3 DESCRIPTION OF SUBJECT PROPERTY

2.3.1 Site : The subject property is a parcel of an almost rectangular in shape land containing of
approximately 4.7 acres of Lot PT 948. The subject property is located within Pantai Balok, Beserah, Mukim of Sg Karang and
District of Kuantan. It is generally flat in terrain and having some development around the subject site.

As at the date of inspection, we noted that the subject property

2.3.2 Land : The development site is generally an irregular in shaped with the topography of the site
is generally flat and adjoining the catchment’s area.

2.3.3 Major Strengths : 2.3.3.1 Strategic Location

The subject property closes proximity with a commercial/business heart pulsating area,
mixed development area and residential area. It can be connected with Kemaman-
Kuantan Road and Pantai Timur Highway.

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1.1.1.2 Accessibilities

A good road network serving to the development site further enhances the location and
advantages. This site is accessible from Kuantan and Kemaman using expressway also
can access by sea.

2.3.3.2 Services

Main water, telecommunications, gas district cooling/chilled water, electricity supplies,


drainage, waste water reticulation system, solid waste facilities and natural gas are
connected to building in the adjoining development and are readily available for
connecting to the subject property.

2.3.3.3 Public Transport Services

Kuantan is well served by a network of expressways. Kuantan can be connected with


Pantai Timur Highways, Kuantan – Kemaman Road. The public transports that exist

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there which cover intra-city buses such as Syarikat Mira’s Bus, Syarikat Sihat bus and
taxi.

2.3 PARTICULAR OF TITLE : We have conducted a search at the Kuantan Registra Office on 22nd February 2007.
Confirming the detail of the title particulars the subject as follows:

Title No : HS (D) 6943


Lot : PT 948
District : Kuantan
State : Pahang Darul Makmur
Tenure : Freehold
Category of Land Use : Building
Provision Land Area : 4.7 acres
Registered Owner : TANCO HOLDING SDN BHD
Encumbrances : NIL
Express Condition : Tanah ini hendaklah digunakan semata-mata
untuk Bangunan Perniagaan.
Restrictions In Interest : Tanah yang diberi milik ini tidak boleh dipindah
milik, dipajak atau digadai melainkan
dengan kebenaran Pihak Berkuasa Negeri.

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\
2.4 PLANNING PROVISION : 2.5.1 Zoning

The land is zoned as business and services use as checked at the Town and
Regional Planning Department, Majilis Perbandaran Kuantan on 22nd February
2007

2.5.2 Future Development

With the zoning of business and services use, we noted that the best
development on the subject land is hotel and resort. In phase 1, the subject land
was proposed for hotel and resort also.

2.5 CONCLUSION : Based on the analysis and research have been made on the project site, we
revealed that the project is very suitable to develop according to surrounding development. Strategic location support the
development project together with existing development that cabs considered being as a project competitors. Relatively the project
site have potential to develop.

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3.0 ECONOMIC FEASIBILITY

A socio economic study has been carried out together information about potential of land development and condition. A set of relevant
question has been design to highlight nature of environmental and land pattern. In economic feasibility is including the population trends,
employment trends and household income at Local Authority area includes Kuantan

3.1 GENERAL INFORMATION ON STATE OF PAHANG

3.1.1 INITIAL ESTIMATION BY DISTRICT

3.1.1.1 Approach of Estimation

It is rather difficult to estimate all the socio-Economic indicates by zone due the lack of basic data in Pahang.
For instances, no governmental agencies have not managed the number of employees in working place by
area. The company estimated marginally required indicates by using available statistical data currently
published or collected in the course of the Study and by taking the most use of the results from the home
Interview Survey, which were conducted by our company as well.

3.1.1.2 Population

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The department of statistics estimated the future population by district. Based on the observation about the
change in the number of housing units by enumeration block, each enumeration block consist of basic zone in
which Approximately 100 household in average.

Table 1: POPULATION ACCORDING TO DISTRICT IN PAHANG (1980-2015)

DISTRICT 1980 1991 2000 2005 2010 2015


NO. % NO. % NO. % NO. % NO. % NO. %
NORTHERN
REGION
Cameron
Highlands 21,502 2.80 25,555 2.46 30,495 2.37 30,774 2.25 30,943 2.04 31,025 1.86
Jerantut 59,043 7.68 74,547 7.13 84,180 6.53 84,927 6.21 86,952 5.73 88,221 5.29
Lipis 56,996 7.41 68,276 6.53 77,844 6.04 77,941 5.70 78,262 5.16 78,543 4.71
Raub 64,414 8.38 73,085 6.99 83,363 6.47 84,079 6.15 85,453 5.64 86,458 5.18
SUBTOTAL 201,955 26.27 241,463 23.11 275,882 21.41 277,721 20.31 281,610 18.57 284,247 17.04
CENTRAL
REGION
Bentung 72,865 9.48 83,965 8.03 101,533 7.88 113,402 8.29 127,510 8.41 143,396 8.60
Kuantan 170,573 22.19 255,974 24.50 358,261 27.81 409,341 29.94 503,450 33.20 592,128 35.50
Maran 91,187 11.86 110,264 10.55 116,636 9.05 118,258 8.66 123,880 8.17 131,173 7.86
Temerloh 91,641 11.92 118,015 11.29 142,794 11.08 144,233 10.55 147,347 9.72 154,154 9.24
SUBTOTAL 426,266 55.45 568,218 54.37 719,224 55.82 785,234 57.44 902,187 59.50 1,020,851 61.20
SOUTHERN
REGION
Pekan 50,058 6.51 86,179 8.25 103,184 8.01 109,646 8.02 125,278 8.26 140,093 8.40
Rompin 38,975 5.07 80,251 7.68 108,095 8.39 111,071 8.12 118,305 7.81 127,568 7.65
Bera 51,547 6.70 68,892 6.59 81,991 6.36 83,467 6.11 88,928 5.86 95,186 5.71
SUBTOTAL 140,580 18.28 235,322 22.52 293,270 22.76 304,184 22.25 332,511 21.93 362,847 21.76
TOTAL 768,801 100 1,045,003 100 1,288,376 100 1,367,139 100 1,516,308 100 1,667,945 100

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1980 1999 2000 2005 2010(Target Population)

No. % No. % No. % No. % No. %

170,573 22.19 255,974 24.5 355,261 27.81 358,262 29.94 503,450 33.2

Table 2: Population at Kuantan (1980-2010)

3.1.2 POPULATION TRENDS

Population is very important to determine the demand, supply and human behaviors. The density population will be base on
this factor:
I. Future population growth
II. Development trend

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Table 3: Population and annual growth by District of Kuantan (1995-2005)


DESTINATION NUMBER OF TOURIST (YEAR)
1999 2000 2001 2002 2003
GROWTH GROWTH RATE
Kuantan Area MUKIM 1999 614,463
% 785,486
2005 % 821,356
(1999-2005) 889,691(1998-2005)538,343
PERCENTAGE (%)
Kuala Kuantan 200,712 19.99
78.41 23.50
280,642 78.33 24.01 79,930 16.87 15.07
3.80
OTHER AREA
Sungai Karang 20,051 7.83 32,906 9.18 12,855 5.66
Genting Highland
Beserah 9,593 1,888,1593.75 1,918,678
12,220 1,918,678
3.41 3,525,169
2,627 2,362,936
2.73
Cameron
PenorHighland 4,487 278,7991.75 305,995
6,001 301,995
1.68 1,514364,930 309,884
3.28
PulauUlu
Tioman
Kuantan 5,952 185,9942.33 200,527
8,776 243,052
2.45 2,824213,172 72,388
4.41
Rompin
Ulu Lepar 15,179 NA5.93 17,717NA 4.95 NA 2,538 78,904 50,056
1.73
Fraser's Hill
DISTRICT OF KUANTAN 255,974 32,154 100 47,963
358,262 10047,910 102,288 60,699 62,879
3.81
Taman Negara 50,778 55,675 58,770 56,121 111,675
Bukit Tinggi NA NA NA 44,437 41,128
Kuala Lipis 23,755 27,461 28,924 28,924 22,087
TOTAL 2,459,619 2,556,299 2,559,329 4,372,356 3,033,033
PERCENTAGE (%) 80.01 76.50 75.99 83.13 84.93

Table 4: Number of Tourists in Main Destination in Pahang (1999-2003)

Table 5: Number of Tourist in District of Kuantan (2000-2003)

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3.1.3 EMPLOYMENT TRENDS

Based on GDP, manufacturing sector is highest part contributed for job opportunities. In 2010, the expectation of job
opportunities on this sector is about 241,031 with the average 40.1% from the total employment.

3.1.3.1 Number Of Students

In terms of the number of students in the public schools and also students from IPTA (University Malaysia Pahang,
Universiti Islam Antarabangsa Malaysia and Institut Kemajuan Ikhtisas Pahang). The Universiti Malasia Pahang are

NUMBER OF TOURIST PERCENTAGE OF TOURIST (%)


DAY LOCAL FOREIGN
YEAR TRIPPERS OVERNIGHT TOURIST TOURIST TOTAL LOCAL FOREIGN TOTAL
2000 327,750 785,486 738,517 279,719 2,131,472 72.53 27.47 100
2001 144,979 821,356 712,431 253,904 1,932,670 73.73 26.27 100
2002 166,667 889,691 806,216 250,142 2,112,716 76.32 23.68 100
2003 638,526 622,214 996,638 264,102 2,521,480 79.05 20.95 100
TOTAL 1,277,922 3,118,747 3,253,802 1,047,867 8,698,338
% 100 75.64 24.36

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consist 7,000 students, Universiti Islam Antarabangsa Malaysia is 4,000 students and Institut Kemajuan Ikhtisas
Pahang is 4,500 students.

3.1.3.2 Employees

There was no reliable data about the updated number of employees by work place by district. The last data about the
employees of Kuantan is about 126,514 in year 2000.

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Table 5: Employment Trends By Sector Year 2000


Sg Kuantan Jaya Gading- Kuala Hulu Hulu District of
OCCUPATION SECTOR Karang Beserah City Gambang Penor Kuantan Kuantan Lepar Kuantan %
PRIMER
Agriculture, Hunting and
Forestry 114 217 1,251 1,036 274 2,778 890 3,658 10,218 8.08
Fishery 199 209 515 520 50 30 2 6 1,531 1.21
Mining 23 53 73 29 0 59 36 2 275 0.22
SUBTOTAL 12,024 9.51
SEKUNDER
Manufacturing 1,060 2,716 6,668 4,359 180 2,190 404 616 18,193 14.83
Electrical & Water 623 127 620 338 12 42 8 9 1,779 1.41
Construction 297 1,402 6,280 2,966 127 753 171 39 12,035 9.51
SUBTOTAL 32,007 25.75
TERTIERY
Trading & Retail 805 808 13,281 4,575 168 1,240 286 157 21,320 16.85
Hotel & Restaurant 289 869 4,968 2,582 67 628 190 103 9,696 7.22
Transportation &
Communication 16 1,128 3,041 2,258 83 751 137 62 7,476 5.91
Financial 42 144 2,318 652 14 69 22 3 3,264 2.58
Real Estate, Rental &
Business 335 275 2,302 1,016 27 229 45 21 4,250 3.36
Defence & Public
Administration 96 1,644 6,984 7,121 395 1,142 202 307 17,891 14.14
Education 20 855 4,355 2,516 96 530 151 302 8,825 6.97
Health & social activities 26 178 1,984 1,013 30 169 39 14 3,453 2.73
Service Community
activities 12 157 1,384 566 72 204 53 7 2,455 1.94
Personal Household with
Employee 32 58 1,332 150 3 38 4 8 1,625 1.28
Organisation/bodies in
Rural Territory 0 0 2 0 0 0 0 0 2 0.00
SUBTOTAL 80,257 62.98
Unclear Occupation 54 90 294 91 2 53 24 1 609 0.48
Unavailable Occupation 186 249 707 332 9 124 7 3 1,617 1.28
TOTAL 4,229 11,179 58,359 32,120 1,609 11,029 2,671 5,318 126,514 100
PERCENTAGE (%) 3.34 8.84 46.13 25.39 1.27 8.72 2.11 4.20 100

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3.2.1 SOCIO-ECONOMIC FRAMEWORK

The effect of currency devaluation is becoming tangible to Malaysian economy. The plan involves the following action:
 Stabilize the Ringgit
 Restore market confidence
 Maintain Financial Stability
 Strengthen Economic Fundamentals
 Continue the equity and socio-Economic Agenda and
 Restore adversely affected sectors

Therefore, the study had to make effort to estimate future regional socio-economic indexes by utilizing obtainable information
and the results of our own surveys for the purpose of the feasibility study.

3.2.2 TOURISM

3.2.2.1 Definition of Tourist

A temporary visitor staying for at least one night no more than one year in a country visited and whose main
purpose of visit could be classified as leisure, business, visiting friends/relatives or attending conference and
meeting other than the exercise of an activity remunerated from within the country.

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Table 8: AVERAGE OCCUPANCY RATES OF HOTELS BY IN KUANTAN

LOCALITY 2005 2004


Kuantan 66.4 58.2

Table 9: HOTEL GUESTS BY LOCALITY (JANUARY - DECEMBER 2002/2003)

NUMBER OF TOURIST (YEAR)


2003 2004
LOCALITY Malaysian Foreigners TOTAL Malaysian Foreigners TOTAL
Kuantan 152,025 22,624 174,649 108,890 17,590 126,480
Cherating 106,791 36,576 143,367 57,987 50,975 108,962
Cameron
Highlands 100,467 46,372 146,839 78,874 31,935 110,809
Genting Highlands 183,197 188,716 371,913 136,942 220,956 357,898

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However, according the current data, the occupancy of hotels by locality in District of Kuantan is good
situation. In Year 2004, the rate is about 58.2 %. The rate was increasing to 66.4 % in Year 2005. The
difference is 8.2 %. The increasing of rate caused the built of Pantai Timur Highway and improvement of
Kuantan development . The increasing will give the good effect to growth of hotel industry in Kuantan

4.0 MARKET FEASIBILITY

Market feasibility is most important section in feasibility study in the pre-planning stage and often forms the bulk of the report. This section
demonstrates the potential market capacity and willingness to purchase or lease the proposed development. However, the study not only
depends on this section. The other section is also important to get results of this study.

4.1 MARKET OVERVIEW IN PAHANG

Generally, the hotel sub-sector was moderately active. The information data was collected until 2003, hotels that generally depended
on foreign tourists registered substantial drops in occupancy. On the supply front, the hotel sub-sector has 11,049 rooms to offer
through 21 hotels, with most hotels offering more than 100 rooms.

4.1.1 NUMBER OF ROOMS AND AVERAGE OCCUPANCY RATE FOR HOTELS IN PAHANG.

Pahang has some of the most famous hotels in Malaysia. There are many hotels that can give a good facilities and services.
Here are some of the most famous hotels in district of Pahang: (Refer next page).

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Table 10: Number of Room and Average Occupancy Rate for Hotel In Pahang

STAR NUMBER OF TOTAL NUMBER OF NUMBER OF ROOMS TARIFF


LOCATION RATING HOTELS ROOMS (RM/NIGHT)
STANDARD SUITE
Bentong 5 1 354 243 26 380-880
4 1 33 33 0 200-1,000
1 1 47 43 4 50-109
SUBTOTAL 10 3 434 319 30
Cameron
Highlands 4 2 228 224 4 320-800
3 3 163 145 18 200-1,200
2 5 252 194 1 75-1,100
SUBTOTAL 9 10 643 563 23
Genting
Highlands 5 3 2,082 1,928 154 275-795
4 1 838 838 0 226-269
3 3 3,689 3,665 24 115-338
SUBTOTAL 12 7 6,609 6,431 178
Kuantan 4 5 1,022 951 54 150-950
3 4 560 414 146 160-850
2 7 462 429 33 84-350
1 5 199 184 15 40-160
SUBTOTAL 10 21 2,243 1,978 248
Rompin 4 2 576 576 0 350-600
2 2 96 92 4 115-196
SUBTOTAL 6 4 672 668 4
Fraser's Hill 3 1 91 81 10 184-632
Jerantut 3 1 18 13 5 45-240
Lipis 2 2 103 71 32 69-229
Mentakab 3 1 80 75 5 80-198
Temerloh 2 2 156 128 28 78-208
TOTAL 60 52 11,049 10,327 563

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04.2 EXISTING STOCKS IN KUANTAN SURROUNDING AREA. (COMPETITORS)

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4.3.1 EXISTING STOCKS IN KUANTAN


0
0(I) Duta Village Resort
1
Duta Village Beach Resort also offers a unique service concept of Resort Hosts which warmly extends to each and
every guest a truly personalized and caring service standard. We are passionately committed to making your stay
here a most memorable one. The Duta Village 50 standard rooms(studio), 20 chalet and 15 long house

Hotel Facilities
1. 24-hour room service
2. Café
3. Swimming pool
4. Car parking
5. Laundry service
6. Tour desk
7. Multipurpose Hall

Room Facilities:
1. Private bath and shower
2. TV , IDD telephonE
(II) Duta Sand Beach Resort

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The Duta Sand Beach Resort located at Balok Beach, Beserah. Guests of the hotel will enjoy the sea environment.
The Duta Sand Beach Resort offers 30 standard rooms and 25 chalets.

Hotel Facilities:

1. Restaurants
2. Lobby lounge
3. 24-hour room service
4. Sauna, spa and steam bath
5. Laundry and dry cleaning

Room Facilities:
1. Air conditioning
2. Refrigerator
3. Coffee & tea making facilities
4. Telephones with data/fax port and voice mail
5. Iron and ironing board

1(III) Hotel Grand Continental

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2
A city hotel that links both east and west coast of Malaysia boasting of its central location within easy access to public
transportation, shopping centres, medical centres, government offices and famous local restaurants. A panoramic view
of the South China Sea can viewed from the hotel's upper floors. This hotel is also adjoined to a block of Service
Apartment units, offering cosy and comfortable accommodation for long term guests as well as expatriates. Offer 80
Deluxe Single rooms, 20 Deluxe Triple rooms and 4 Executive rooms.

List of Facilities:
1. Air conditioning
2. Business centre
3. Fitness centre
4. IDD
5. Banquet facilities
6. Coffee shop
7. Foreign exchange
8. Limousine
9. Shopping arcade
10. Conference facilities
11. Swimming (outdoor)
12. Mini bar

3 (iv) Mega View Hotel

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4
Let us invite you to stay, be it for business or for pleasure, in Megaview Hotel. Strategically located in the heart of
Kuantan town, it is a place with magnificent view of the Kuantan river. With our dedicated, pleasant and friendly staff,
let us take care of you at the Megaview Hotel! . The hotel offer 50 standard rooms,15 Deluxe rooms and 5 family
rooms

List of Facilities:
1 .Air conditioning
2. Business centre
3. Fitness centre
4. IDD
5. Banquet facilities
6. Coffee shop
7. Foreign exchange
8 .Limousine
9. Shopping arcade
10. Conference facilities
11.Swimming (outdoor)
12.Mini bar

5(v) Seri Malaysia Hotel

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Hotel Seri Malaysia Kuantan offers a fantastic deal for travelers heading towards Teluk Cempedak beach.This 2-storey
hotel building located along Jalan Telok Sisek, Kuantan is an ideal getaway for those keen on enjoying the pristine
beaches of Kuantan at an affordable cost. Equipped with 150 rooms (standard and family room), Hotel Seri Malaysia
Kuantan is situated a mere 20 km from the airport and 300 km from Kuala Lumpur. Visitors can enjoy both local and
western cuisine at the scenic Cafe Seri Banir Coffee House which operates from 7am to 11 pm daily. The hotel also
has multi-functional rooms ideal for conferences, meetings and other events

List of Facilities:
1 .Air conditioning
2. Business centre
3. Fitness centre
4. IDD
5. Multipurpose Hall
6. Swimming Pool
7. Color TV
8. Hot water heater
9. Mini fridge
10. Coffee House
11. Coffee and tea-making facility
12. Conference facilities
13. 24 hours reception / message services
14. Taxi service, car rental

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15. Laundry and dry-cleaning services

6(vi) Tamukami

The name TAMUKAMI translated meaning 'Our Guest'. The beetle nut leaf in our logo holds
significance as in the early days, guests are invited to sample the servings from the Tepak
Sireh which symbolizes a great honor and traditional hospitality. A special treatment will be
accorded to all our guests.The traditional architecture reflects the resort's commitment to a
more gracious and extensive lifestyle. Business and pleasure is no strange feat in this
resort.We have a total of 53 rooms and suites that have been specially designed with a
combination of Malaysian charm fitted and supplied with the most modern amenities. Each
room has a private balcony.

List of Facilities:
1. Air-conditioning
2. accommodation
3. TV in all rooms / Astro (lobby)
4. Mini bar
5. Restaurant
6. Meeting and conference room
7. Special tours

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8. Swimming pool

(vii) Shahzan Inn

Whether you stay is for pleasure or business, Shahzan Inn Kuantan refreshes you like no other. wish the ambience
perfected to catch the cosy mood of the retreat away from it all but never away from the finest thing in life, Shahzan
Inn Kuantan is the excellence choice. It is located in the heart of Kuantan which put you right on the center of activities
where you can observe Malaysia at their natural friendliness.127 tastefully furnished rooms at Shahzan Inn, Kuantan
comprise of 10 suites, 25 family and 92 deluxe rooms are made available for your preference. They come with
standard features like the individually controlled air-conditioning, IDD telephone and colour televisions.

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List of Facilities:

1. Laundry Service
2. Souvenir and Gift Shop
3. Ample car-parking facilities
4. ASTRO TV Program
5. Baby Sitting service (by arrangements)
6. Private Limousine service (by arrangements)
7. Resort Tour (by arrangements)
8. Volleyball, Football, Netball
9. Telematches / Treasure Hunt
10. Video Games Room
11. Karaoke Facilities
12. Roller skating and children playground
13. Jungle tracking
14. Pony Rides

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4.3 DEMAND ANALYSIS

Demand for resort is derived from several factors including our economic scenario and labor of population and government
policy. It is important that our national economy must be stable in order to attract investments in hotel. The main potential
demand for our proposed development would come from local tourist and outside tourist.

We expected that development of hotel at Pantai Balok can be fulfill demand depends on the attraction. From our research, in
Pantai Balok there are 2 hotels/resorts only in this area. So that, the tourist can occupant this hotel. The demand for
hotels/resorts may be generated by the attractions of a locality, whether natural like situated within is being developed as a
fully equipped, self-sustaining cosmopolitan city. It means Pantai Balok is one’s strategic.

Here are some points that influenced demand for DE MAYA VILLAGE

(I) Higher institution graduation ceremony/ convocation

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Kuantan actually fills with many higher institution namely In terms of the number of students in the
public schools and also students from IPTA (University Malaysia Pahang, Universiti Islam Antarabangsa
Malaysia and Institut Kemajuan Ikhtisas Pahang). The Universiti Malasia Pahang are consist 7,000
students, Universiti Islam Antarabangsa Malaysia is 4,000 students and Institut Kemajuan Ikhtisas
Pahang is 4,500 students.

(II) Companies and other bodies seminar

Some seminar that conducted by the companies or bodies may last for days. So, we assume that
demand for hotel rooms and other facilities are just around the corner. Most people have already
associate Kuantan with high-tech companies and its fast growing IT community. Besides that, various
activities and seminar was done in Kuantan

(III) Infrastructure

The site actually surrounded with integrated roads namely Kuantan - Kemaman Road and Lebuh
Pantai Timur Highway. In other words, the subject property is actually strategically located. All city
amenities will be built to cater for the needs of its cosmopolitan cities. The hotel should be located in a
place where the customer can reach them easily.

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(IV) Big player and interesting place

Teluk Chempedak Beach - just 5 km from the town of Kuantan, this is an excellent beach for
numerous water sports. Souvenir and handicraft shops are all within walking distance. Beyond the main
beach, there are secluded bathing spots. A short jungle trek through the Teluk Cempedak Forest
Reserve leads to the idyllic Pelindung Beach. An alternative route will lead you to the Teruntum Park,
which has a mini zoo.

Lake Chini - is Malaysia's second largest natural lake whose well-known myths have attracted visitors
from far and wide. Legend has it that an ancient Khmer city once existed here and that mythical
monsters live in and guard the lake. The Jakun people of Malaysia have lived around the lake's shore
for long generations, and their oral traditions have enticed numerous archaeologists to conduct
scientific expeditions to Chini.

Pahang Royal Golf Course - 55-hectare property that offers many bunkers, water hazards, with the
South China Sea wind providing the extra challenge. This area also has access to a sandy beach and
swimming as well as the many sports facilities associated with a resort.

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14.4 MARKETING STRATEGY

The hotel/resort industry has been seen to be sensitive to the world economy. During the recession in 1984-1987, 1997-1998,
tragedy of September 11, tragedy of bomb explode in Bali, “Selsema burung”, SARS and tsunami, it was affected the
occupancy rate fell in Malaysia. The number of tourist entering Malaysia also fell during this period.

(I) Location

Pantai Balok is located 3km north of Kuantan and 13km north of the Kuantan Airport. Visitors can reach
Pantai Balok using expressways, urban highways and rail.

A strategic location at the seaside of east of peninsular opposing the South China Sea area which
popular with its beautiful and bright beaches is a good destination for tourists and visitors. It is also
suitable for visitors to visit Pantai Balok because it has a lot of interesting and beautiful places instead
of the beaches itself. The purchasing power by the visitors is generally based on the currency rate and
the adjustment of price.

(II) Accommodation / Facilities

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As the economy recovered, the hotel industry began to pick up again. The aggressive promotion in the
country as a tourist destination by the government also helped to further improve the hotel industry as
demand for hotel rooms increased. It is interesting to note the trend of five, four and three star hotels
has been quite similar in terms of occupancy rates. The higher occupancy rate recorded by four-star
hotel is largely due to their lower tariffs.

(III) Launching Ceremony

We will make a grand party for launching ceremony to attract many tourists to come and joint us.

(IV) Media Advertising

To boost the performance development, it is great to advertise the said development in the national
newspapers, magazine and through television. Heavy promotional activities must also be done
especially on signboard beside major highway and also near the development site itself.

(V) Exhibition

Make a special exhibition and those alternatives such as participating in a local authority organized
regional exhibition or trade fair may be better. An exhibition can be held wherever suitable like shopping

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complex. It’s very important and valuable as a part of the promotional mix in isolation. The Photographs
of hotel was prepared to explain visually and to invite request for information.

(VI) Multimedia System Communication

Besides all item above, tourist can make a promotion through multimedia system communication,
example by Internet. According that, tourist can know about the latest promotion tariff/night that have
launched in market.

(VII) Survey

To identify the potential of that product, surveyed by researcher should be taken which would give some
consideration regarding the development.

The proposed hotel buildings should be projected as a special building for leisure and formal activities
as a center where entrepreneurs meet and expand their business. The prospect of having hotel
buildings would be an attraction for businessman and tourists as they can use as an avenue to expand
their business and also to enjoy the environment and culture in Malaysia. In addition, by offering low
tariff of room rate, we are confident that we can achieve the expected occupancy rate.

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04.5 DE MAYA RESORT CONCEPT

The concept of our proposed hotel is “Beach Village”. Our target market are for all family, corporate and government bodies
and for the students that nearest our proposed project. Besides, foreign and local tourists are also our target market. The
rental rate is also applicable with the employment income growth at outside or inside this area. The hotel concept will
described in more detailed in Chapter 5 (Design Feasibility).

04.6 ACCOMMODATION

4.7.1 ACCOMMODATIONS IN THIS HOTEL ARE:

Type of Room No. Of Rooms Room Rate (RM)


Chalet 20 140-160
Long House 1 22 90-120
Long House 2 8 120-150
Studio 60 120-140
Total 110

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Tenancy: (Assumption)
Rent review every 3 year. 10% increase from the existing rate. The building is not fully occupied. Occupancy
rate considered economic situation (up and down inflation rate) and demand of the building use.

14.7 FACILITIES OF DE MAYA RESORT

TYPE OF FACILITIES TOTAL OF UNITS


Pub and Lounge 1
Restaurant 1
Swimming Pool 1
Souvenir and gift shop 2
Multi Purpose Hall 1
Accommodations 110
24 hours rooms services 110
Parking Bays 110
Air-Conditioning All
Sport Facilities 4

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4.8 OUTSIDE CAR PARKING


The total of parking bays over 100 bays.

24.9 TOURISM DEVELOPMENT STRATEGY

The objectives tourism development sector is to create an industry of tourism that will last by using culture and natural areas
in Kuantan. Besides that, activities and attractions in Kuantan must be scheduled. The tourism department also should
promote a township of Kuantan as a new and best township in Kuantan. The local authority also should increase basic
infrastructure and logging facilities. Finally, create tourism products and recreational activities include of local in tourism
activities such as preparation of food, culture, transport and also interpretive facilities.

4.10 TARGET MARKET

We would recommend that the target market in this proposal are to the businessman, students, investors and tourists
whether local tourist or foreign tourist and the others. The accessibility to this hotel is very easy whereby all the information

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of our Hotel can be accessed from the pamphlet at the tourism centre, foreign also can get information from internet and
also can make a booking by phone and e-mail.

Another target market is for other people who came to Kuantan for several reasons such as:

• Social activities for example visits relatives and friends


• Labor is also our target market, especially outside and local labor.
• Traveling as overnight and staging requirements along route. Especially journey from west to east Malaysia.

• Parents coming for student’s convocation in Universiti Malaysia Pahang,Universiti Islam Antarabangsa Malaysia dan
IKIP. The other people might be stay at our proposed hotel when they want to attend for conference, meeting and formal
activities.
• Others reason is also can attract the people to fulfill an occupancy rate of the hotel.

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4.11 SWOT ANALYSIS

4.13.1 STRENGTHS
1
The strengths of subject property can be identified as follows:
• Good accessibility with direct access from Terengganu - Kuala Lumpur – Negeri Sembilan

• Generally, Kuantan is main Administration centre of Pahang

• Kuantan has many beautiful and interesting places.

• The proposed hotel is near to the administrative centre i.e. government department.

4.13.2 WEAKNESS

• The weaknesses of this project is there are 6 hotels competitor at the surrounding area

• Besides, lack of tourism and high cost in term at upgrading the river and soil influence the weakness at this project.

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4.13.3 OPPORTUNITIES

• With improved road network to the subject property may able to attract tourist from other part of all over Malaysia and
also out from other countries.
• With a development area due to the surrounding township, the subject property would be able to capture the market
demand.
• It has a ready market from the expanding population from Kuantan and all of Pahang

4.13.4 THREATS

• In addition, the economic slow down and the uncertainty of the world economic will also adversely affect the demand
for this project.
• Competition for the subject property can be expected from other projects planned by state goverment to save the
market segments.

4.12 CONCLUSION

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From the market feasibility, based on demand and supply analysis, we can conclude that the project will be profitable because
the economic factor is good. De Maya Resort will become a good attraction to a lot of people especially to the students,
family, tourist and many more. Besides that, there are a lot of interesting places at the surrounding such as fisherman’
village, Teluk Chempedak, Cherating beach, etc. It is also in the vicinity of mixed development such as ‘ Kampong House’,
commercial lot, and for future have a housing development will be develop within the locality.

5.0 DESIGN FEASIBILITY

In accordance to the proposed project, the type of the development that suitable for development is a resort which would be rated as
a 3 star hotel. The resort would consist of 110 number of guest rooms classified into 3 types, a multipurpose room , a restaurant and
karaoke. Also, it would be equipped with facilities like a swimming pool and tennis court.

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5.1 CONCEPT FORMULATION

The concept design of the resort is ‘Beach Village’ which has been adopted to give the identity to the proposed development. The
proposed development utilized this concept to adapt with the surrounding development besides to follow the development concept
regulation by the Kuantan itself. Part of the building and chalets will be positioned to face the South Chinese Sea , so the people
could feed their eyes with lake’s tranquil scenery. This would enhance the beauty of the development.

Meanwhile the concept of the resort itself is a ‘Beach Village. The proposed resort is purposely to cater the needs of all generation.
With the number of rooms and facilities provided, the resort would be comfortable enough for all generation to cater their
accommodation and their business activity purposes. Besides that, the sport centre and restaurant could cater the customer leisure
activities. Within the boundaries of the resort, there will be a garden with well designed landscape consists of many decorative
sculpture mixes with the various types of tress and plants. This could make the development area soften with greenish scenery.
5.2 CONCEPT OBJECTIVE

The proposed development is a resort which located at the beach cost, utilizing the ‘Beach Village” concept is a suitable since there
has no other resort using such concept like this yet. The utilization of this concept is actually to achieve the objectives which stated
as below:-

i. To give an identity to the development as it is a new development in the beach area.


ii. To boost a good prospect of income as its location is in the heart of Kuantan itself.

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The concept should be able to accept, since there have no any other resort utilizing the same concept in the area. Also, the location
is situated in the middle of the Pahang prime area which there will be many business activities and government sector will operates
there. The existence of the proposed resort would be able to cater the accommodation and the business activity for this type of
peoples.

5.3 LANDSCAPE DESIGN

The proposed development might be implementing a well design landscape architecture to give a special value to the resort
development. The landscape might be consisted a combination of soft landscape and hard landscape and mote to village style. The
identity for the landscape design will be influenced from Malaysian landscape identity. The implementation might emphasize the
usage the local trees and plants. The landscape would be functioned as:

1. Shade and control glare from the sun


2. Control wind direction which comes directly from the lake
3. Screening and visual control to certain area of the development
4. To stabilize and control the erosion of the soil at the lake’s bank, if any.

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5. To add the aesthetical value to the development.


6. To show our socio-cultural through the landscape design
7. For the matters of ecological aspect such as a preservation of the animal habitat
8. Green lung and microclimate modifiers.

5.4 BUILDING SPECIFICATION

ELEMENT SPECIFICATION
1 Substructure

1A Piling Cast in-situ bored piles based on penetration depth of 55m

1B Work Below Lowest Floor Reinforced concrete pile cap, column stump, retaining wall, ground floor slab with
Finish waterproofing membrane

2 Superstructure

2A Frame Reinforced concrete column and beam construction. Reinforced concrete lift core wall

Reinforced concrete slab


2B Upper Floors

2C Roof Reinforced concrete flat roof with waterproofing membrane steel section roof trusses covering

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with ‘Lysght’ colorbond roof metal decking including all necessary accessories. UPVC
rainwater down pipe including accessories
2D Stairs

2E External Walls Reinforced staircase with mild steel balustrade and handling

115mm clay brick wall, aluminium fixed glass panel


2F Windows & External Doors

2G Internal walls and Partitions Aluminum top hung and fixed window, adjustable louver window, segmented fixed panel,
automatic sliding door, fixed glass panel and tempered glass swing door
2H Internal Doors
Generally 115mm cement sand brick wall

Generally timber skeleton framed and solid flush door, Fire rated door to Authority’s
requirements, aluminium swing glazed door. All complete with ironmongeries set.
3 Finishes
Cement and sand plastering, homogeneous wall tiles, ceramic tiles, multi purpose granite tile
3A Internal Wall Finishes
and painting

3B Internal Floor Finishes Cement rendering, floor hardener, homogeneous tiles, granite and carpet

3C Internal Ceiling Finishes Cement and sand plastering, brefill premix plaster, asbestos free cement board, gypsum
fibrous plastered and painting

3D External Finishes Cement and sand plastering and acrylic paint

4 Fittings and Furnishing Prime Cost Sum for fixed and loose

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5 Services
Pedestal and squatting water closet, vanity basin mixer, basin tap, kitchen sink tap, urinal,
5A Sanitary Appliances
shower head liquid dispenser, hand dryer, soap dish and toilet roll holder, long bath.

5B Plumbing Installation
a) Mechanical & Electrical for sewerage equipment, sanitary plumbing services
b) Cold water services

6 External Works

6A Site Work Road, parking and pavior

6B Drainage Surface water drainage

6C External Services Water reticulation

6D Ancillary Buildings Refuse chamber

6E Recreational Facilities Landscaping works

5.5 UNIT SPECIFICATION

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Gross floor
Item Unit Floor Ceiling finishes No. of Notes area
finishes unit (sq. ft)
1. Room
a) Studio Carpet Plastered ceiling 60 A standard-sized room with twin bed 300
and an attached bathroom
b) Long House 1 Wood Ceiling Block 22 A standard-sized room with a double or 220
king size bed and attached bathroom
c) Long House 2
Wood Ceiling Block 8 Accommodation is quite the same with 375
d) Chalet the above types but the different is the
size and facilities provided
Wood Ceiling Block 20 Accommodation with the above types 300
but larger in size
2. Lobby Granite tiles Plastered boards with 1 Consist of main entrance to hotel,
concealed lighting and reception, waiting area, information
air conditioning counter
3. Restaurant 2000
a) Storage Cement Fairfaced concrete 1 Available to cater 200 customer at one
b) Kitchen Area rendered Fairfaced concrete 1 time
c) Dine Area Ceramic Suspended plastered 1
tiles ceiling
Granite tiles

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4. Tennis court Cement 2 Tennis Games Standard


rendered
5. Administration Homogenou Gypsum board 1 Administration office for management 1000
Office s tiles staff
6. Pub & Lounge Homogenou Gypsum board Available to cater 200 customer at one 2000
s tiles time

7. Parking Bay Tar 100 Available to 100 vehicle at one time 128

8. Multi Purpose Homogenou Gypsum board 1 Available to 500 at one time 32000
Hall s
Tiles

5.6 DEVELOPMENT PHASES AND IMPLEMENTATION(tgk cash flow)

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The proposed development is expected to be fully completed over in a period of 24 months. The expected
construction progress is spread by the quarter of year period within the years of the development.

The stages will be as follows:


Year Quarter Type Description Time Period Percentage
Constructions
st
1 1 Qtr Clearance, Preliminary Investigation, Site preparation 3 months 10%

2nd Qtr Construction Foundation, sewerage system 3 months 12.5%


rd
3 Qtr Construction Superstructure ground floor 3 months 16.25%
4th Qtr Construction Superstructure 1st Floor 3 months 16.25%
2 1st Qtr Construction Superstructure 2th Floor 3 months 17%
nd
2 Qtr Construction Services installation, swimming pool, courts 3 months 8%

3rd Qtr Construction Floor, wall and ceiling finishes 3 months 10%
rd
4 Floor final Accommodation Equipment and Landscaping 3 months 10%
TOTAL 24mths 100%

5.7 CONCLUSION

The proposed development has been proposed the above concept, design and any suitable idea which can match to
the resort requirement and also to fulfill the client’s requirement. By utilizing the design and the concept proposed in
this report, the proposed development is believed can achieve the target set by the client. However, all the proposed

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idea and concept is not a final decision.

6.0 FINANCIAL FEASIBILITY

For the purpose of this study, we were instructed by the client to consider the viability of resort development project on the Lot 948,
Beserah, Mukim of Sg Karang, District of Kuantan, Pahang Darul Makmur. The following financial studies are based on:

a. The adopted concept and land used distribution as formulates in the concept plan
b. The implementation programmed

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c. Preliminary estimate on cost and expected on cost and expected revenue


d. Some planning assumption relating to the utilization of land and quantity of occupier

It is stressed that all financial figure indicated in the following paragraph are preliminary cost and estimate and should be adjusted
accordingly when detail information on the land and detail design and infrastructure are made available.

An evaluation using Profit Method, investment method, Residual Method of valuation and Discounted Cash flow Approach are
prepared based on the Gross Development Value (GDV) and Total Development Cost (TDC) during the development period of 2
years time for the development project.

6.1 PROJECT COST BRIEF


A Feasibility Study and various cash flow plans were made for the development to determine the viability of the development
project. (Refer Cash flow)

DEVELOPMENT APPRAISAL
The development appraisal was made based on the following assumptions:

SUMMARY OF ASSUMPTION

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GROSS DEVELOPMENT VALUE (GDV)

In accordance to our recommendations, the estimated incomes used in determining potential revenues are:
A. Resort
a) Resort rooms
b) Restaurant
c) Multi Purpose Hall
d) Pub and Lounge
e) Shop Rental

6.2 ESTIMATED COST OF DEVELOPMENT (TDC)

Based on inquiries with contractors and developers on the prevailing construction cost and similar infrastructure, we
have estimated the total cost of the proposed development as follows:

6.2.1 LAND PURCHASED

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Cost of purchasing the development land based on open market price for the development land is between RM 7 per
square feet to RM 10 per square feet. The site however has been purchased at RM 8 per sq ft.

6.2.2 CONTRIBUTION TO LOCAL AUTHORITY

These are the estimation cost of contribution to the relevant authority. The contribution to the relevant authority is
estimated at RM 50,000

6.2.3 PRELIMINARY COST

The preliminary works are the initial works that need to be done upon site before any development or construction can
be done. These costs are assumed at RM 10,000 per acre.

6.2.4 SITE PREPARATION


The site preparation cost includes the cost of site inspection, soil investigation, site clearance and earthwork. These
cost is estimated at RM211,500

6.2.5 INFRASTRUCTURE

The infrastructure cost includes the cost of construction of roads and drainage, electrical supply, sewerage, water
supply and telecommunication. The cost are estimated at RM 698,500

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6.2.6 BUILDING COST

Cost of construction of the buildings. The building costs are based on the current cost analysis of construction material
per unit. These cover the whole
building and external facilities such as multipurpose hall, restaurant, tennis court and swimming pool. The total
construction cost is estimated at RM 4,746,600

6.2.7 FURNITURE AND FACILITIES FOR RESORT

Cost to cover the furniture and décor facilities of the resort. These costs are including the cost of purchasing the
furniture such as chair, table, bedstead, blanket, refrigerator, cabinet, , vase, laundry, lights, TV, air-condition and
others. These cost are estimated at RM 1,356,000.

6.2.8 PROFESSIONAL FEES

The costs of professional development team including fees payable to Architects, Quantity Surveyors and Engineers.
Based upon the scale of fee payable to these professional is about 7% from building cost and 5% of infrastructure
works cost

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6.2.9 PROJECT MANAGEMENT FEES

The cost of project management is estimated at RM12,000 per month for 24 months

6.2.10 FINANCING COST

1. Bridging Financing - Bridging financing is for the period of construction. The interest rate
is 8% per annum.

6.2.11 CONTIGENCIES

It is a sum set aside for unforeseen variation in development expenditure due to delay, cost inflation and other risk.
Normally the contingency provision is calculated from the total cost incurred in construction period. For the proposed
of the project development, we estimated about 5% allocated under this item.

6.2.12 LANDSCAPING

The cost of landscaping which includes the soft and hard landscaping for the purpose of beautification are estimated
at RM 20,000 per acre.

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6.3 DISCOUNTED CASH FLOW APPROACH

In arriving the internal rate of return of the purpose development, we also adopted the Discounted Cash Flow Method where the
assumptions made as follows:

1. The development period is assumed to be fully completed at period 2 years.


2. The construction period is assumed to be at 2 years.

6.3.1 ADVANTAGES OF CASH FLOWS APPROACH

6.3.1.1 Taxation and its implication could be built into the appraisal and the total debt outstanding at any point in the
development process, total payback period and the date of peak cash outlay can also be shown easily and quite
systematically

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6.3.1.2 In the cash flow appraisal, it has allowances for inflation, which involve prediction of the future; it is a controversial
subject and does not find favor with some developers. Nevertheless, if a developer wants to examine the effect of
the profitability on different approach enables this to be done more accurately.

6.4.1 ESTIMATED PROFIT

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DEVELOPMENT APPRAISAL
Based upon development appraisal (refer to Appendix 4), the financial analysis indications are as follows:

Gross Development Value (GDV) RM16,262,591


Total Cost of Development RM 11,256,452
Estimated Profit RM 5,006,139

The percentage of profit over Gross Development Value (GDV) is 31% which is higher than the acceptable profit of 15% to
25%. The percentage of profit over Total development Cost (TDC) is 46% which is within the acceptable margin of 20% to
50% of TDC. Financial analysis based on development appraisal indicated the development is viable.

CASHFLOW ANALYSIS
The cash flow plan indicates the development is viable. The payback period of capital recoupment is after 14 years (after
disposal of property). The internal rate of return for the development is calculated at 14.1377% which is higher than the cost
of borrowing.

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Casflow results:
Estimated Profit (as at the end of investment period) : RM 22,483,299
The cost of borrowing : 8% per annum
Internal Rate of Return : 14.1377%

6.4.2 ALTERNATIVE (OPTION 2)


As for alternative investment option on the subjected site, we also hereby provide another option for investment consideration.
This option no. 2 is distinguished by option no.1 by its design, number of proposed rooms but the investment details
framework and analysis are same as option no.2. layout design for this option is attached to appendices. Brief of investment
option no 2 are as follows:

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Gross Development Value (GDV) RM23, 548,122


Total Cost of Development RM 17,344,525
Estimated Profit RM 6,203,598

The percentage of profit over Gross Development Value (GDV) is 26% which is a slightly higher than the acceptable profit of
15% to 25%. The percentage of profit over Total development Cost (TDC) is 36% which is within the acceptable margin of
20% to 50% of TDC. Financial analysis based on development appraisal indicated the development is viable.

CASHFLOW ANALYSIS
The cash flow plan indicates the development is viable. The payback period of capital recoupment is also after 14 years (after
disposal of the property). The internal rate of return for the development is calculated at 13.6526% which is higher than the
cost of borrowing.

Casflow results:
Estimated Profit (as at the end of investment Period) : RM 30,094,124
The cost of borrowing : 8% per annum
Internal Rate of Return : 13.6526%

Details of cashflow analysis on option no 2 is attached in appendices.

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7.0 CONCLUSION AND RECOMMENDATION

Based on our analysis, we are of the opinion that the project is feasible to develop at this time. It is based on the current economic
growth that reflected our projected cash flow.

From analysis of both options, we can conclude both investments are feasible and viable. However we as the opinion of that option
no.1 are a better investment option as compared to investment no.2.

This is based on the following point:-

I. The purchaser (developer) will easily get the end finance and bridging finance from the financial institution.
II. Based on the economic situation at this moment, there is a positive growth and this situation will enhance the
confident level among the local investor and even the foreigners to invest in Malaysia.
III. The high purchasing power among the Kuantan resident will ensure the success of our target market.

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IV. The developer’s profit from GDV is 31% and from TDC is 44%. (refer to cash flow)
V. Higher Internal Rate of Return (14.1377%) as the borrowing rate just at 8% per annum.

And due to the above statement we note that the purposed of the resort is viable and feasible. The development will bring good
prospect to the developer in the future and profitable investment for a long term basis. It is advisable to proceed with the
development project upon the site.

…………………………….
Sr. Abdul Rahman bin Haji Abdul Karim.
BEM (UiTM), MISM (M), APEPS
Registered Valuer (V109)

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8.0 APPENDICES

Subject Property

Site Plan

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Certified Plan

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Map of Pahang

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25m Longhouse 2

15m
Longhouse 1

11m
Interesting Place
20m

Lake

15m
Tennis Court

20m
Admin office,
Layout Plan for Option 1 lobby, Studio,
Site of subject property

Multipurpose
Hall Chalet
Swimming
Restaurant

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pool
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Deluxe

30m
First Floor 10m

hall
Multipurpose
Basket Ball
Layout Plan for Option 2 72m

Office
66m
Ground Floor
Restaurant Lobby
30mx100m
180m
Tennis Court

Chalet Chalet

Kids Pool
45m x 10m

28m
Swimming
Chalet Pool Chalet
10m x 25m
28m

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Volley Ball Volley Ball
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