More incentives needed to help distressed properties
All Stones Group Asia Sep 30, 2011
Property developer, Allstones Group Asia Sdn Bhd,
lauded the proposed amendments to the Housing Development Act, 1966 and urged the
government to look into even more measures that would help existing property buyers who are
already caught in abandoned projects.
“The proposed amendments to the Act are all well and good for future buyers, but what about
people who have already invested their hard-earned money in properties that have been
abandoned?,” asked M. K.H. Sim, Chairman of Allstones Group Asia Sdn Bhd.
Sim expressed hope that the government would consider incentives for ‘white knights’ that rescue
distressed properties in the coming Budget. “To help alleviate the financial burden of existing
buyers already affected by abandoned projects, the government should consider motivating ‘white
knights’ to undertake revitalisation of distressed projects. These could include mandatory quota of
project financing by local banks and the Government taking the lead by setting up a special fund
to provide project financing to ‘white knights’ at preferential rate with an element of mutual profit
sharing,” he said.
“The government should also consider tax incentives for consultants and parties involved in
rescuing abandoned projects, passing of an Act similar to the Danaharta Act for the Government
to take over abandoned projects and appointing prequalified ‘white knights’ and consultants to
revive these projects. In addition, a one stop agency should be created to resolve planning and
building issues, speedy approvals and licences from the relevant authorities,” Sim added.
At the end of the day, the objective is to help those trapped in this unfortunate situation as fast as
possible. Some have lost their life savings and have little hope of ever seeing their dream home,”
he concluded.
Allstones Group Asia Sdn Bhd has long been involved in reviving distressed and abandoned
projects. Over the years the company has gained much experience in this niche market within
the property industry and has had successes in several special situation projects. The group has
successfully revived and completed distressed projects, turning them into successful
developments such as Taragon Puteri YKS, Taragon Puteri Cheras and Taragon Puteri Bintang.
About Allstones Group Asia Sdn Bhd.
Established since 2000, the Allstones Group Asia is in the business of property development,
investment and real estate management services. The Group developed its niche in the
specialised situation properties market and has since taken on residential, commercial, hotel and
retail developments within South East Asia. As a leader in its field, the Group offers an in-depth
understanding of the property market fundamentals and trends on a local and regional scale.
Headquartered in Kuala Lumpur, the Group has successfully completed several developments in
Malaysia. These include Taragon Puteri YKS, Taragon Puteri Cheras and Taragon Puteri
Bintang.
In addition, the Group has an ongoing project, Taragon Kelana and will be launching a
new project in Kuala Lumpur in 2012. Past investments include Taragon Mont Kiara, Taragon
Puteri Kemensah and the purchase of distressed mortgages in Malaysia. The dynamic Allstones
Group Asia comprises of Allstones, Bluestone, Blackstone, Redstone and Taragon Malaysia.
