PROCAFE Review: Continew @ Jalan Tun Razak by Ibraco

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(Source: PropCafe.net)

Many KLites didn’t aware we have Middle Ring Road 1 (MRR1) where the acronyms is lesser famous than the elder brother MRR2. MRR1 is formed from 4 main arteries which are Jalan Tun Razak, Jalan Mahameru (now known as Lebuhraya Sultan Iskandar), Jalan Istana and Jalan Sungai Besi.

The stretch of Jalan Tun Razak starts from interchange of Jalan Ipoh and along the road you will pass by the prominent landmark such as KL General Hospital, Balai Seni, National Library and IJN. From the interchange of Jalan Ampang, you will pass through the posher part of KL where on left side is the famous embassy row (Ampang Hilir) and Royal Selangor Golf Club. After the bulatan Kampung Pandan, the road will be linked to Jalan Sungai Besi and for the motorist to continue the journey to South or to Jalan Istana.

However due to development over the time, there is a stretch of Jalan Tun Razak seems almost forgotten. This stretch is linking Jalan Chan Sow Lin with Bulatan Kampung Pandan.

With this, Ibraco has come with a freehold integrated development called Continew with GDV of RM450m.

Developer Background

Established in 1971, Ibraco is a property development company where their businesses are primarily based in a Sarawak. They are the largest developer in Bintulu as per excerpt below

“Ibraco, the city’s largest developer which has built and sold more than 10,000 residential and commercial properties here, ventured into Bintulu three years ago with an integrated mixed development project named “Bintulu Town Square” with a gross development value (GDV) of over RM600mil”

(Source: http://www.thestar.com.my/business/business-news/2015/06/16/ibraco-goes-to-kl/)

Ibraco Financial Analysis 

With market capitalization of RM470m, Ibraco has consistently increasing the revenue and nett profit. The latest annual report 2015 is showing Ibraco is generating revenue of RM254m with nett profit of RM52m, a healthy 20% nett profit margin. The nett gearing ratio has been kept well below 40%. Also despite having cash or equivalent balance of RM47m, the current debt outstanding is amounted to RM71m and non-current debt is RM83m. It is a concern of the company to service the short term debt if they couldn’t recover the receivables on timely manner….

Ibraco is making the maiden foray to the Klang Valley property by acquiring a piece of commercial land in 2015. Swiftly they have applied the development order and open for booking towards the end of 2016.

Location, Accessibilities and Amenities

In 2015 Ibraco has acquired the FREEHOLD commercial vacant land measuring 1.4393 acre acquired for RM55m worked to be RM878psf. Based on the indicative GDV of RM450m, the land cost worked to be approximately 12% of the total GDV.

The location Of Continew

The land is sandwiched in between a Buddhist Temple and Wenworth Hotel with Masjid Jamek Alam Shah slight further away.

In general, Continew is located approximately

  1. 4km away from KLCC
  2. 7km away from KL Sentral
  3. 400m away from Ikea Cheras/ Mytown
  4. 2km away from Sunway Velocity and TRX
  5. 14km away from Mont Kiara

This neighbourhood sort of fall behind of time despite the tremendous development where just a stone’s throw away. Government is pumping billion of Ringgit in TRX which is just 2km away. Nearer to Continew, Cochrane MRT station which going to be operation soon is about 650m away. For shopping, F&B and DIY fan, Ikea Cheras/MyTown/Sunway Velocity is a short stroll or drive away. Shoplots are just along and across the road to serve your quick needs for the packet of cigarettes, breads and supper. Clinics, car repair shops, super and mini market, 7-11 etc.

How about the locality? For new townships, it is well planned with well-kept and wide roads, hidden utilities cables, fresh and modern looking building façade etc. However at this old part of Pudu, purchasers have to accept the locality is not “sexy” and appealing. Take a look on the surrounding photos below.

Locality of Continew sharing with shoplots, Wenworth Hotel, Buddhist Temple and a mosque

The cars were parked haphazardly and causing the congestion along the main road. The traffic light is notorious for traffic jam whether you are coming or going to KL direction and this is not helped with haphazard parking.

Congestion along Jalan Tun Razak

Continew main artery is the OLD Jalan Tun Razak where via Bulatan Kampung Pandan you can go/for KLCC. Via Bulatan Kampung Pandan you can straight away hit MEX to go to KLIA or Putrajaya. At the traffic light turning to left will bring you to PUDU area and the right to Ikea Cheras/ Mytown/ Cochrane MRT station.The Accessibility of Continew

Overview of Development and Façade

The 1.44 acre freehold Continew consists of 510 units in 2 blocks of 44 and 50storeys. Both blocks are joined with 8 nos of sky gardens on selective floors.

The color tone of the façade reminds the writer of the MCity and Icon PJ where it seems to be quite gloomy with its dark grey tone. The overall façade is glassy with sharp edges along the vertical line.

Façade of Continew

On tower A since there is only one side with units, there is open corridor leading to all the units. Propcafe has concern whenever there is heavy rain the rain will splash to the corridor and may flood the corridor and possibly spill over inside the unit. Also the residents maybe wet from the rain. Prospect buyers may enquiry the developer whether they will install window or perforated shelter to avoid the rain to splash over.

Unit Layouts

Floor and Unit Layout of Continew

There are whopping 16 variance layouts in this development even though some of the layouts are similar but just slight variance between them. There are 6 units per floor in block A and 9 units per floor in block B. Each block will have 4 nos of lift. On paper it seems the lifts allocation is not balance where despite block B having more units, the number of lift for both blocks remain the same.

The size of typical unit ranging from 550-1175sqft with 1, 1+1, 2 bedrooms and dual keys configuration.

Type Size (sqft) Configuration Carpark
A1, A2 and A3 548-554 1 bedroom 1
B and C 689, 693 1+1 bedroom 1
D, H, J and J1 849, 926, 1175, 1165 Dual Keys 2
D1, E, F1, F2, F3, G, G1 830 – 881 2 bedrooms 2

Units below 800sqft will be entitled 1 carpark and above 800sqft will be entitled 2 carparks.

Strangely for type A variance despite the one bedroom configuration, the bathroom is not ensuite or with dual entrance however the owner need to walk out from the bedroom across the dining and kitchen before reaching the bathroom. Personally writer think this is inefficient layout. Sliding panels is nice feature as partition especially to open up space however the sliding panels must be sturdy and from top quality. Without the show unit, writer assume they wouldn’t be any sliding support on the floor therefore the full load will be taken by the top support. Over the time the support will give way and the panels will be coming out from the rail.

For savvy investors, they will go for type C where the study room with the window can be converted to another bedroom. The width is sufficient to place a single or queen size bed with balance space for wardrobe and study table.

All the units only come with dry kitchen without wet kitchen and yard configuration.

Do not be fooled by the show unit… the microwave is not part of the kitchen package….

Show units of Continew

The flooring is porcelain tiles with bedrooms with laminated flooring. Hm… writer wish developer to be more generous with the finishes especially with the prices that they are asking…. The ceiling height is 10feet which is quite decent.

Facilities

The main facilities is on 8th floor in the block B which consists of the usual stuffs i.e. swimming pool, multipurpose halls ,BBQ deck etc. There are sky gardens on 22, 32, 42, 45 and 49 for relaxation and recreation. Probably the most impressive facility is the club house at the rooftop with triple volume. The residents can book the facilities to host a part and surely the view will impress the guests.

Facilities at Continew

Pricing

After the rebate the net price is from RM820psf for units bigger than 800sqft and for units smaller than 800sqft the price starts from RM850psf. The premium for every floor increase is approximately RM3k. What you get for the freehold product above RM800psf at this location? Developer will give 5% rebate and throw in free SPA and Loan Agreement legal fees and disbursement. Living and Bedrooms will be equipped with Aircon and bathrooms with equipped with shower screen and instant water heater. Strangely, only low kitchen cabinet with hood and hob given. Write would expect a fully fitted kitchen comes with microwave and oven, fridge, dryer and washer given for such price tag. Just look at Hampton Residence where Mayland has been pretty generous with fittings and amount of freebies throw inside every unit.

Other matter

The construction period will take about 4 years and standard SPA will be amended to reflect that. The maintenance and sinking fund is expected to be RM0.35psf and if you buy the smallest unit, the fee will be less than RM200 permonth. Currently the construction already start with piling machines on full throttle.

Summary

Many have been said about the viability of high end condominium smacked right in the vicinity… The locality is not pretty but the accessibility and amenities are pretty decent. It is close enough to KL City and future finance hub TRX. The IKEA Cheras/Mytown and Cochrane MRT station are also within 10minute walking distance away. However for those who familiar.. the notorious KFC presence in this vicinity even in broad daylight is a concern. This can be detrimental for prospect buyers who are familiar with this area. And with the price tag of above RM800psf, developer being part of the community should find a solution to weed out the vice activities which in Propcafe’s opinion just matter of time…

Happy Investing Folks!