Hariz Afandi bin Zulkhairi

INSTITUT PENILAIAN NEGARA

THE INDUSTRIAL TRAINING PROJECT ACADEMIC SESSION 2018/2019

Name : Hariz Afandi Bin Zulkhairi
No Matrix : SPHT-15-18-003
NRIC : 000826-10-0543
Course : Certificate of Real Estate Valuation

INTRODUCTION
Internship is an integral platform for students to gain experience in an actual workplace. It is a
great opportunity for me to apply theories and knowledge that I have learned while at INSPEN
into the working life. I choose IAN SCOTT INTERNATIONAL, Putrajaya as my internship
spot.
For this task, I go for a property which is an end lot of industrial land erected with an industrial
building for my project
COMPANY ORGANIZATINAL CHART

IAN SCOTT INTERNATIONAL
DATO’ Sr ROSLI ATAN, FRISM

Group MD / Proprietor, Asia

DATO’ Sr LAU WAI SEANG
Chairman

Sr KHAIDZIR ABDUL RASIP
Managing Director

NOR FADZYLAH YUSOF ZULKIFLI ABDULLAH
Executive Director Associate Director

Sr ROSLAN MANAP GAVIN SCOTT
Consultant Director

WORK PROCESS QUOTATION
BEFORE
INSTRUCTION
DURING
AFTER FILE REGISTRATION

PRE-INSPECTION
PROCESS

INSPECTION

PREPARATION OF
VALUATION
REPORT

SUBMISSION TO
THE CLIENT

1.0 BEFORE

QUOTATION

a) Before any valuation is conducted, the clients will request for the fee
quotation for their consideration. This quotation amongst others will include
the followings:
i. Objective of the valuation
ii. Scopes of work
iii. Time Frame
iv. Required documents
v. Professional fees
vi. Acceptance Notes

b) The quotation fees letter will be forwarded to the clients.
c) If they agree with the quotation, we will proceed with the valuation. But if

they do not agree, then they will re-negotiate until both parties satisfied.

INSTRUCTION

a) After the acceptance of quotation, they will instruct us to proceed with the
valuation via email, reissuance of letter of instruction or acceptance on our
quotation letter.

FILE REGISTRATION

a) After the instruction to proceed has been given, the case will be registered
in the Registration Book which consists of:
i. File reference number
ii. Instruction date
iii. Details of the subject property
iv. Assigned Valuer
v. Dateline

b) New file will be opened after the case is registered.
c) The file cover will also consist the same information as in the Registration

Book and this working process is handled by a Valuation Coordinator in
Department of Administration.

PRE-INSPECTION PROCESS

a) Upon receiving a file, Valuer in charge will check the contents of file which
must have the instruction letter and other documents such as land title and
building plan. If those required documents are incomplete, Valuer will
communicate with clients to ask for the documents. Then locate and identify
the subject property.

b) Valuer then will contact the person in charge from the clients side to arrange
the appointment for site visit.

c) Depending on the location of the subject property, Valuer will assign the
valuation assistant to conduct a title search at the respective land office.

d) The purpose is to verify details of the subject property such as lot number,
title number, district, mukim, land size, tenure, any endorsements,
restriction of interest, encumbrances etc.

e) Valuer will go to the Planning Department of the Local Authority to make
an enquiry on planning details to check zoning provision for the subject
property, density for residential, plot ratio for commercial and check the
building or development guidelines.

f) In order to get the sales evidence, the company subscribes to VMS system
which supply transaction details as provided by the Jabatan Perhidmatan
dan Penilaian Hartanah (JPPH).

g) The Valuer will select the suitable comparable to be inspected during the
site visit.

h) Before inspection, Valuer will check all the equipment for inspection.

2.0 DURING

INSPECTION
a) Before inspection starts, Valuer will discuss with the clients to explain

things to do during the inspection.
b) Then, we will check the building plan provided to us and compared it with

the building on site. The purposes are:
i. To verify measurement
ii. To check if there is any extension to the building which is not
included in the original plan.
iii. To note building accommodation and floor finishing.

c) If there is no plan provided, the Valuer will measure the building and sketch
the building plan.

d) During the inspection, photos of the subject property is important to be used
as references to valuer.

3.0 AFTER

PREPARATION OF THE VALUATION REPORT

a) All the data collected from inspection will be translated into a Valuation
Report and prepared according to the Malaysia Valuation Standard (MVS).

b) Report writing and valuation analysis will be prepared by the Valuer.
c) The methods adopted in arriving the market value of the subject property

are:
i. Comparison method
ii. Cost method

d) Senior valuer will check:
i. Description of the subject property
ii. Grammar

iii. The comparable adopted
iv. The adjustment made
e) Valuer will take the draft report for final discussion with Registered Valuer.

SUBMISSION TO THE CLIENTS

a) After the Valuation Report has been signed by Registered Valuer, The
Administration department will prepare the acknowledgement letter and
Invoice will be prepared by account department.

b) Then all the documents will be submitted to the clients and they need to
acknowledge that they have received the report.

c) The account department will follow up with the clients to collect the fee.
d) After all fees have been collected, the file will be closed.

SUMMARY OF REPORT AND VALUATION

Client : INDKOM GROUP OF COMPANIES

Registered Owner : INDKOM GROUP OF COMPANIES

Property Address : Lot 2, Jalan Asam Jawa 16/15, Seksyen 16, Kawasan Perindustrian
Shah Alam, 40200 Shah Alam Selangor Darul Ehsan.

Type of Property : An end lot of industrial land erected with industrial building.

Lot/Title No. : PT No. 711 section 16 held under Title No. HSD 98497, Bandar
Tenure Shah Alam, District of Petaling, State of Selangor.

: 99 years leasehold title expiring on 20th July 2094 (the unexpired
term of lease is about 76 years)

Titled Land Area : 11,852 sq. Metres

Built-Up Areas : Warehouse Office Building Ancillary Building
3,438 sq. metres 118.50 sq. metres
7,339 sq. metres
Date of Valuation : 2nd April 2019

Purpose of : Financing purposes
Valuation

Market Value : Ringgit Malaysia Twenty-Eight Million Only (RM28,000,000)

Force Sale Value : Ringgit Malaysia Twenty-Two Million and Four Hundred
Thousand (RM22,400,00)

TABLE OF CONTENT

1.00 Introduction
2.00 Purpose of Report and Valuation
3.00 Date of Valuation
4.00 Inspection and Referencing
5.00 Location of the Subject Property
6.00 Neighbourhood and Developments
7.00 Description of the Subject Property
8.00 Particulars of Title
9.00 Planning Provisions
10.00 Occupancy Status
11.00 Public Utilities and Services
12.00 Basis of Valuation
13.00 Methods of Valuation
14.00 Evidences of Values
15.00 Opinion of Values

APPENDICES
Appendix A
Appendix B
Appendix C
Appendix D
Appendix E

REPORT AND VALUATION
OF

PT NO. 711 SEKSYEN 16 HELD UNDER TITLE NO. HSD 98497 BANDAR SHAH
ALAM, DISTRICT OF PETALING STATE OF SELANGOR

(AN END LOT OF INDUSTRIAL LAND ERECTED WITH AN INDUSTRIAL BUILDINGS)
BEARING POSTAL ADDRESS

LOT 2 JALAN ASAM JAWA 16/15, SEKSYEN 16, KAWASAN PERINDUSTRIAN
SHAH ALAM 40200 SHAH ALAM SELANGOR

1.0 Introduction

In pursuance to the instruction given by INDKOM GROUP OF COMPANIES to
value the captioned property, we confirm we have inspected the same on 2nd April 2019,
taken all relevant particulars, made the necessary investigations and now submit our
Report & Valuation.

2.0 Purpose of Report and Valuation

This Report & Valuation is prepared to determine the Market Value of the subject
property for financing purposes.

3.0 Date of Valuation

The material date of valuation shall be the date of inspection as mentioned above, i.e.
2nd April 2019.

4.0 Inspection and Referencing

The inspection of the subject property was conducted by Nur Hidayah Rosli and Nur
Adzlyn Hamidon of Ian Scott International (M) Sdn Bhd.

5.0 Location of the Subject Property

The subject property is located within an established industrial scheme within Seksyen
16, Shah Alam Industrial Estate, approximately 5 kilometres and 32 kilometres due
south west of Shah Alam city centre and Kuala Lumpur city centre respectively.

It is situated on the southern part of Federal Highway, a highway linking Kuala Lumpur
city centre with Subang, Shah Alam and Klang development neighbourhoods.

Access to the subject property from the abovementioned highway is by exiting onto
Jalan Padang Jawa, Persiaran Selangor, Persiaran Kemajuan and finally onto Jalan
Asam Jawa 16/15 which the subject property fronts onto.

Location plans identifying the subject property are enclosed herewith for easy reference
as APPENDIX A.

6.0 Neighbourhood Developments

Properties within the immediate vicinity of the subject property are predominantly
industrial which is includes individually designed detached factories and warehouses.

Other notable developments within the larger vicinity of the subject property are as
follows:

Notable Developments Distances from the Subject Property
Terasaki Electric (M) Sdn Bhd 120 metres due southeast
Frenzy Sports Arena 570 metres due northeast
Mydin Mart, Padang Jawa 620 metres due southwest
KTM Padang Jawa 670 metres due southwest
Sekolah Kebangsaan Padang Jawa 700 metres due southwest
IRDKL Mall 700 metres due west
Masjid As-Solihin Kg Padang Jawa 730 metres due southeast
Puspakom Padang Jawa 760 metres due northwest
SMK Seksyen 16 Shah Alam 840 metres due southeast
JPJ Padang Jawa 870 metres due northwest

7.0 Description of the Subject Property

The descriptions of the subject property are as follows:

7.01 The Site

The shape of the Subject Property is regular in shape. It enjoys an excellent
three-sided road frontage i.e. onto Persiaran Kemajuan along the north-eastern
boundary and Jalan Asam Jawa 16/15 at the south-eastern and eastern
boundaries respectively and the entrance to the site is via the later road.

The site is generally flat in physical terrain and lies at about the same level with
the frontage roads except for Persiaran Kemajuan. The provisional land area of
the subject property is about 11,852 sq. metres.

The site boundaries of the subject property are demarcated by partly plastered
brickwalls and partly chain-link fencing. Access to the subject property is
secured by an automatic sliding metal gate hinged onto the pair of concrete
pillars. The internal road circulations and car park are of tarmac.

7.02 The Buildings

At the date of our inspection, we noted the following buildings were erected on
the site:

(i) A single storey warehouse.
(ii) An annexed three (3) storey office building.
(iii)Ancillary buildings include one (1) unit of guard house and an open-sided

motorcycle shed.

Further descriptions of the above buildings are as follows:

(i) A single storey warehouse
(a) Construction
Building Frame : Steel portal framework

Roof : Metal corrugated sheets on steel roof trusses

Roof Insulator : Aluminium foil laid with mesh wire

Walls : Plastered and painted brickwalls as well as
metal corrugated cladding

Doors : Metal roller shutter and timber flush units

Windows : Adjustable glass louvres

Eaves Height : 9.70 metres

Building Condition : Good

(b) The accommodations and floor finishes of the building are as follows:

Accommodations Floor Finishes
Production Area Epoxy Flooring/ Cement rendered
Storage Area Epoxy Flooring/ Cement rendered
Loading Bay Cement rendered

(ii) An annexed three (3) storey office building

(a) Construction

Building Frame : Reinforced concrete framework

Roof : Concrete flat roof

Ceilings : Mineral suspended ceiling boards

Walls : Plastered and painted brick walls/partition
walls

Doors : Glass and timber flush units

Windows : Aluminium framed glass casement

Access to Upper Floor : Three (3) reinforced concrete staircases

Building Condition : Good

(b) Accommodation
The accommodations and floor finishes of the building are as follows:

Accommodations Floor Finishes
First Floor
Office room Carpet felt
Storeroom Cement rendered
Surau Carpet felt
Toilets Ceramic tiles
Prayer rooms Carpet felt

Accommodations Floor Finishes
Second Floor
Training room Carpet felt
Office room Carpet felt
Storeroom Cement rendered
Toilets Ceramic tiles
Ground Floor
Reception Ceramic tiles
Office room Carpet felt
Meeting room Carpet felt
VIP Pantry Carpet felt
Prayer rooms Carpet felt
Canteen Ceramic tiles
Toilets Ceramic tiles
Storeroom Cement rendered

(iii)Ancillary Buildings
a) One (1) unit of Guard House

This guard house is typically a single storey building constructed of
reinforced concrete framework with timber trussed roof and covered
with concrete roof tiles. The walls are plastered and painted
brickwalls. The doors are timber flush and the windows are wooden
framed adjustable louvre and glass window.

The floor finishes are of cement rendered.

b) Open-Sided Motorcycle Shed

It is an open side shed constructed of steel framework covered with
aluminium roof sheets. The floor is made of tarmac.

We have been informed by the clients that the approximate age of the buildings
is 22 years and noted that all the buildings were in a good condition.

The Certificate of Fitness for Occupation vide a Certificate No. SA/NS/2517
was issued by Majlis Perbandaran Shah Alam (presently Majlis Bandaraya Shah
Alam) dated 21st April 1994.

The abovesaid certificate is enclosed herewith for easy reference as
APPENDIX D.

7.03 Built-up Areas

The approximate built-up areas of these buildings are as follows:

Buildings Built Up Areas (Sq. metre)
Warehouse 7,339.15
Annexed Office Building 3,438.75
Ancillary Buildings 118.50
10,896.40
Total

The floor plans and photographs of the subject property are attached with this
Report as APPENDICES B and C respectively.

8.00 Particulars of Title
We have conducted a land title search at the Pejabat Tanah Dan Galian Selangor on
9th April 2019, confirming the details of the title particulars of the subject property as
follows:

Title. No. : HSD 98497

Lot No. : PT 711 Seksyen 16

Bandar : Bandar Shah Alam

District : Petaling

State : Selangor

Tenure : 99 years leasehold interest expiring on 20th July 2094 (the
unexpired term of lease is about 76 years)

Land Area : 11,852 sq. metres

Quit Rent : RM29,156.00

Category of Land Use : Perusahaan

Expressed Condition : Perusahaan

Registered Owner (s) : INDKOM ENGINEERING SDN BHD

Restriction In-Interest : Tanah yang diberi milik ini tidak boleh dipindah milik,
dipajak atau digadai melainkan dengan kebenaran Pihak
Berkuasa Negeri

Encumbrances : i) The title is presently charged three (3) times to BANK
ISLAM MALAYSIA BERHAD vide the following
Presentation Nos:

Presentation Nos. Dates of Registration
17839/2005 25th March 2005
17840/2005 25th March 2005
142053/2010 29th December 2010

ii) A Private Caveat has been entered by BANK ISLAM
MALAYSIA BERHAD vide Registration No.
49311/2004 registered on 8th December 2004

Endorsements :-

A copy of the title search document is attached as APPENDIX D.
9.00 Planning Provisions

The subject property is located within an area zoned for industrial use.

10.00 Occupancy Status

At the date of our inspection, we noted the subject property was occupied.

11.00 Public Utilities and Services

Public utilities such as electricity, main water supplies and telecommunication lines are
connected to the subject property.

Majlis Bandaraya Shah Alam provides the usual public amenities and services.

Public transportations are available within this vicinity.

12.00 Basis of Valuation

Our basis of valuation is the Market Value.

Market Value defined as the estimated amount which an asset should exchange on the
date of valuation between a willing buyer and a willing seller in an arm’s-length
transaction after proper marketing wherein the parties had each acted knowledgeably,
prudently and without compulsion.

13.00 Methods of Valuation

In arriving at the Market Value of the subject property, we have adopted the following
Methods of Valuation:

i) Comparison Method
This Method of Valuation seeks to determine the value of the property being
valued by comparing a yardstick recent sale evidences involving other similar
property in the vicinity.

ii) Cost Method
This approach seeks to ascertain the value of the property through the summation
of the land value and cost building. In determining the value of the land, the
analysed apportionment value attributable to the land is adopted as described in
the comparison method.
In determining the cost of building, current estimates on constructional costs to
erect equivalent buildings are adopted, taking into consideration of similar
accommodation in terms of size, construction, finishes, contractors’ overheads,
fees and profits. Appropriate adjustments are then made for factors of
obsolescence and existing physical condition of the building.

14.00 Evidence of Value
Our investigations revealed the following sale evidences of vacant ind

Details Comparable 1 Comparable 2
Properties
PT 715 Jalan Halba No. 2, 4 and 6, Jalan
Type 16/16, Seksyen 16, Dividen 23/6, Seksyen
Title Nos.
Land Area Shah Alam 23, Shah Alam

Tenure Vacant industrial Vacant industrial
Considerations detached plot detached plot
Dates of Transaction
HSD 98051 PN 110153, 110154
Vendors and 110155
123,333 sq. ft.
Purchasers 177,325 sq. ft.
Analysis per sq. ft. 99 years leasehold
expiring on 20th July 99 years leasehold
expiring on 9th March
2094
2107
RM14,923,493.00
RM26,500,000.00
7-Dec-2017
24-Jun-2016
Perbadanan
Kemajuan Negeri CMD gemilang Sdn
Bhd
Selangor
RGP Warehouse
CWM Group Sdn Solutions Sdn Bhd
Bhd
RM149.44
RM121.00

dustrial plots within the vicinity of the subject property:

Comparable 3 Comparable 4 Comparable 5

PT 363, Persiaran No. 3 Jalan Jemuju PT 326, Seksyen 23,
n Budiman, Seksyen 16/3D Seksyen 16, Shah Alam

23, Shah Alam Shah Alam Vacant industrial
detached plot
Vacant industrial Vacant industrial
detached plot detached plot

HSD 306479 HSD 46910 HSD 296691

241,940 sq. ft. 45,269 sq. ft. 356,973 sq. ft.

99 years leasehold 99 years leasehold 99 years leasehold
expiring on 6th expiring on 4th expiring on 30th May
February 2102 October 2089
2098
RM23,169,637.00 RM3,785,510.00
RM56,715,000.00
27-Oct-2017 14-Apr-2016
20-Apr-2015
Perbadanan Perbadanan
Kemajuan negeri Kemajuan Negeri Pacific Emerald
properties Sdn Bhd
Selangor Selangor
Greenway Link Sdn
ESB MTO Sdn Bhd Terasaki Electric (M) Bhd
Sdn Bhd
RM95.77 RM154.97
RM83.62

Based on the above, we noted the analysed comparables ranging from RM83.62 psf to
RM 154.97 psf.

Further adjustments were made on dissimilarities to the subject property in terms of time factor,
location, accessibility, tenure, land improvement and land size to arrive at our opinion of value
for the land at RM140.00 psf.

Building Value

In arriving at the building value of the subject property, we have adopted the current
cost to construct a new industrial and office building that similar to the subject property
and deducting amount for its depreciation and obsolescence to arrive at the depreciated
building value.

Based on the publication from the 2018 Construction Handbook produced by Davis
Langdon & Seah, Malaysia we noted that the current unit cost for a typical new
industrial building ranges from RM140 psf to RM170 psf whilst office building ranging
from RM150 psf to RM190 psf including cost of material and labour. For the subject
property, we have estimated the cost of new building by adopting a unit cost of RM180
psf on the gross floor area of the subject property plus (+) the amount for professional
fees, development charges, authority charges, finance costs, site infrastructure cost,
inflation and developer’s profit and risks.

15.00 Opinion of Value

Market Value

In our opinion, The Market Value of PT No. 711 Seksyen 16 held under Title
No. HSD 98497, Bandar Shah Alam, District of Petaling, State of Selangor,
with the benefit of an unencumbered leasehold title having about 76 years
unexpired term, with vacant possession and also subject to the above provisions
is Ringgit Malaysia Twenty Eight Million Only. (RM28,000,000.00)



APPENDIX A

LOCATION PLAN 1
REPORT AND VALUATION OF LOT 2, JALAN ASAM JAWA 16/
40200 SHAH ALAM, SELANGOR.

APPROXIMATE LOCATION OF
SUBJECT PROPERTY

/15, SEKSYEN 16, KAWASAN PERINDUSTRIAN SHAH ALAM,

LOCATION PLAN 2
REPORT AND VALUATION OF LOT 2, JALAN ASAM JAWA 16
40200 SHAH ALAM, SELANGOR.

APPROXIMATE LOCATION OF
SUBJECT PROPERTY

6/15, SEKSYEN 16, KAWASAN PERINDUSTRIAN SHAH ALAM

THE SUBJECT PROPERTY

AERIAL VIEW
REPORT AND VALUATION OF LOT 2, JALAN ASAM JAWA 16
40200 SHAH ALAM, SELANGOR.

6/15, SEKSYEN 16, KAWASAN PERINDUSTRIAN SHAH ALAM

SITE PLAN
REPORT AND VALUATION OF LOT 2, JALAN ASAM JAWA 16
40200 SHAH ALAM, SELANGOR.

6/15, SEKSYEN 16, KAWASAN PERINDUSTRIAN SHAH ALAM



APPENDIX B

FLOOR PLAN – OFFICE BUILDING (GROUND FLOOR)
REPORT AND VALUATION OF LOT 2, JALAN ASAM JAWA 16
40200 SHAH ALAM, SELANGOR.

6/15, SEKSYEN 16, KAWASAN PERINDUSTRIAN SHAH ALAM

FLOOR PLAN – OFFICE BUILDING (FIRST FLOOR)
REPORT AND VALUATION OF LOT 2, JALAN ASAM JAWA 16
40200 SHAH ALAM, SELANGOR.

6/15, SEKSYEN 16, KAWASAN PERINDUSTRIAN SHAH ALAM

FLOOR PLAN – OFFICE BUILDING (FIRST FLOOR)
REPORT AND VALUATION OF LOT 2, JALAN ASAM JAWA 16
40200 SHAH ALAM, SELANGOR.

6/15, SEKSYEN 16, KAWASAN PERINDUSTRIAN SHAH ALAM

FLOOR PLAN – OFFICE BUILDING (FIRST FLOOR)
REPORT AND VALUATION OF LOT 2, JALAN ASAM JAWA 16/15, SEKSYEN 16,
KAWASAN PERINDUSTRIAN SHAH ALAM 40200 SHAH ALAM, SELANGOR.

APPENDIX C

General view of the subject property as seen from Jalan Persiaran Kemajuan
The main entrance of the subject property

The main entrance of the office building
Internal views of the office building (Ground Floor)

Lobby area Cafeteria



APPENDIX D