Muhammad Aiman Bin Marzilaini

THE INDUSTRIAL TRAINING PROJECT
Name: Muhammad Aiman Bin Marzilaini
Student card: SPHT-15-11-1087
Identity card: 000313-11-1087

INSPEN supervisor: Asmahani Binti Mohd Napiah
Ian Scott International (M) Sdn Bhd supervisor: Nor Fadzylah Binti Yusof

INTRODUCTION

Industry training is a subject that is required for every student in the INSPEN during the fourth
(4) semester as it is a requirement for students to qualify for further semester study.
The purpose of this industry training is to provide students with early exposure before they
enter the workforce upon graduation. Students will practice the knowledge gained during the
learning process in the real field of work.
In addition, industry training can also evaluate the ability of students to prepare for the work
environment.
Industry training is also aimed at building self-confidence in the face of challenges. This is
because students will face challenges in many aspects when they enter the work environment.
The industry training spot I have chosen is Ian Scott International (M) SDN BHD, starting from
November 25 2019 till February 28 2020. It is a very prestigious company and I’m honored to
be was part of them.

PART A

ORGANIZATION CHART

DATO’ Sr ROSLI ATAN

FRISM Group MD/Proprietor, Asia and CEO of IAN SCOTT INTERNATIONAL (M) SDN BHD

Sr KHAIDZIR ABDUL RASIP

MANAGING DIRECTOR

ZULKIFLI ABDULLAH NOR FADZYLAH YUSOF Sr ROSLAN MANAP ZAMBRI MOHAMED ISA

ASSOCIATE DIRECTOR EXECUTIVE DIRECTOR CONSULTANT CONSULTANT

PROCESS OF VALUATION

BEFORE INSPECTION
1. Quotation
- Before any valuation is conducted, the client 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
- The quotation fees letter will be forwarded to the client either by hand or email.
- If the client agrees with the quotation, we will proceed with the valuation.
- But if the client does not agree with the quoted fee, then the client will re-negotiate the fee
to be charged until both parties satisfied.
2. Instruction
- After the acceptance of quotation, the client will instruct us to proceed with the valuation
via email, reissuance of letter of instruction or acceptance on our quotation letter.
- In this case, there is no letter of instruction issued by the client as the acceptance of
quotation endorse on our quotation.
3. File Registration
- After the instruction to proceed has been given by the client, the case will be registered in
the Registration Book which consists of:
i. File reference number
ii. Date of instruction
iii. Details of the subject property
iv. Assigned Valuer/Officer
v. Dateline
- New file will be opened after the case is registered on the book.

-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.

4. Pre-inspection Process

- Upon receiving a file, Valuer/Officer in charge will check the contents of file which must
have the instruction letter and other documents such as land title, building plan and etc. In the
event those required documents are incomplete, Valuer/ Person in charge will communicate
with client to ask for the said document. Valuer/ Person in charge then will study the case to
locate and identify the subject property.

- Valuer / Officer in charge then will contact the person in charge from the client side to
arrange and to confirm the appointment for site visit.

- Depending on the location of the subject property, Valuer/Officer in charge will assign the
valuation assistant to conduct a title search at the respective land office. The purpose of
conducting a title search is to verify and confirm details of the subject property such as lot
number, title number, district, mukim, land size, tenure, any endorsements, restriction of
interest, encumbrances and etc. In order to know whether we need to go to Pejabat Tanah
Daerah or Pejabat Tanah dan Galian, we must refer the title number of the subject property. If
the title number is held under Hakmilik Sementara Mukim (HSM), Pajakan Mukim (PM) or
Geran Mukim (GM), the title search will be conducted at the Pejabat Tanah Daerah PTD)

But if the title number is held under Hak Milik Sementara Daerah (HSD), Pajakan Negeri
(PN) or Geran (GRN), then the title search will be conducted Pejabat Tanah Dan Galian
(PTG). Usually, we already have a copy of title provided by client, however, conducting a
title search is important in order to confirm any amendment or latest endorsement in the title.
The fee charged by the land office is varied depending on states. The private title search for
this case is RM30.00 each (Carian Persendirian). But it depends on the cases as sometimes
we also need to conduct an official title search (Carian Rasmi)

Then, Valuer/Person in charge will go to the Planning Department of the Local Authority to
make an enquiry on planning details. The purpose of this enquiry details is to check zoning
provision for the subject property, density for residential, plot ratio for commercial and check
the building guidelines or development guidelines. Information on Planning details usually
will be gathered via Rancangan Tempatan or zoning plan.

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).

The Valuer will select and note the suitable comparables to be inspected during the site visit.

- The Valuer/Person in Charge will contact the client to set an appointment for a site visit.

- Before going to inspection, Valuer / Officer in charge will check all the equipment for
inspection such as measuring tape, camera and file and make sure all the equipment is in a
good condition.

DURING INSPECTION
5. Inspection
- After the appointment has been confirmed, then we can go for a site visit of the subject
property.
- Usually, before inspection starts, Valuer in Charge will have a brief meeting with the client.
During this meeting, we will have a discussion and explain what we as a valuer will do
during the inspection and areas need to be visited.
- And then during inspection, 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.
- If there is no plan provided, the Valuer will measure the building and sketch the building
plan. In this case, the building plan of subject property has been provided by the client.
- During the inspection, internal, external and panorama photos of the subject property is
important to be used as references to valuer.
- But in this case of subject property, we are only allowed to take photos at the office area but
cannot take the internal photos of the manufacturing area due to safety reason.

AFTER INSPECTION
6. Preparation of the Valuation Report
- All the data collected from site visit will be translated into a Valuation Report.
- Valuation report is prepared according to the Malaysia Valuation Standard (MVS) which
amongst other include the followings: -
i. Introduction
ii. Purpose of Report and Valuation
iii. Scopes of Work
iv. Date of Valuation
v. Inspection and Referencing
vi. Location of the Subject Properties
vii. Neighbourhood Developments
viii. Description of the Subject Properties

ix. Particulars of Titles

x. Planning Provision

xi. Public Utilities and Services

xii. Methods of Valuation

xiii. Evidences of Value

xiv. Opinion of Value

- Report writing and valuation analysis will be prepared by the Valuer in charge.

- In arriving the market value of the subject property, the methods adopted are Comparison
and Cost Method.

- Comparison method: - is a method of valuation seeking to determine the value of the
property being valued by comparing and adopting as a yardstick recent transactions and sale
evidences involving other similar property within the vicinity. For comparison method, they
will refer to VMS system which includes the details of the comparable property. Factors to be
considered during the valuation working process for comparison method are: -

i. Location of comparable property.

ii. Type of Comparable

iii. Title number of comparable

iv. Land Size

v. Tenure

vi. Date of transaction

vii. Improvement made.

- Several adjustments will be made to arrive at the opinion of value.

- All the comparable properties below are from Jabatan Penilaian dan Perhidmatan Harta
(JPPH)

- Cost method: -
 This approach seeks to ascertain the value of the property through the summation of
the value components of the land 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, whilst making due allowances to factors of location, plot
size, accessibility and other relevant factors.
 In determining the cost of building, current estimates on construction 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.

 For cost method, they will refer to Langdon & Seah Hand Book 2017 which included
the details of the construction cost for the type of property to be valued.

 Then Valuer in charge will discuss with the Senior Officer or Head of Valuation on
the opinion of value derived and report content before concluding the opinion of
value.

- During the discussion with the senior Valuer: -

 Senior Valuer will check the report which include the description of the subject
property which is very important in order to avoid wrong description to the subject
property.

 Then, they will check on the grammar and ensure all the words are easy to be
understand.

 Besides, senior valuer will check whether the comparable adopted are suitable for this
case are not. In this case Senior Valuer had agreed with the comparable chosen by the
Valuer in charge.

 Then, Senior Valuer will check on the adjustment made in order to ensure that all the
adjustment made are acceptable and justifiable.

 Later, Valuer in charge will take the draft report and valuation working for final
discussion with the Registered Valuer before signing the report.

 - Registered Valuer go through the content of Valuation report and valuation working
and will sign the report upon all his/her satisfactory.

 - And then, preparation of the Appendices by the Valuer which included: -
 i. Location
 ii. Site Plan
 iii. Floor Plan for Office building and Warehouse
 iv. Title search
 v. Any related Document

7. Submission to the client

- After the report and valuation has been completed and signed by the Registered Valuer, the
Administration department will prepare the acknowledgement letter and Invoice will be
prepared by account department.

- In the invoice, it will include our professional service charge which is:

 Our fee
 Service tax
 Disbursement
-Then all the documents will be submitted to the client and the client need to acknowledge
that they have already received the report.

- Depending on the case, the client will pay the fee at the time submission or at a later date.

- For the payment at a later date, the accounting department will follow up with the client in
order to collect the fee. Normally the fee will be collected between 2 weeks to 1 month.

- After all the fees have been collected and completed, then the file will be closed and it will
be put in the file rack.

6.0 CALCULATION OF FEES

- The fees imposed are subjected to the scale of fees issued by the BOVEAP and for the
normal cases, we refer to scale of fee for the purpose of capital valuation.

- The scale of fees are as follow:-

1/4 % on the first RM 100,000
1/5 % on the residue up to RM 2 million
1/6 % on the residue up to RM 7 million
1/8 % on the residue up to RM 15 million
1/10 % on the residue up to RM 50 million
1/15% on the residue up RM200 million
1/20% on the residue up to RM500 million
1/25% on the residue over RM500 million

7.0 HANDLING THE CLIENT

- In this case, according to the valuer in charge, there is no problem and misunderstanding in
dealing with the client and client is very helping in giving information.
- But sometimes, based on the valuer’s experience, the challenges they faced in their working
process is to make a telephone call with the client to explain the valuation process properly
and the purpose of the conducting the exercise.

- And then, follow by email to proof a correspondence between us and client. This is
important to ensure that there is no miscommunication happen at a later date.

- Besides, this include to get the person in charge on the site to be visited know that the valuer
are coming to the site.

- This is important in order to avoid any problems during the site visit because normally the
instruction for such cases are given by HQ office, but the site to be inspected is managed by
other site manager/officer.

- In other words, communication between HQ and valuer must include site officer in loop.

- Lastly, for any cases that not being paid after certain time, officer from account department
will communicate with the client in order to collect the said fee, normally via a phone call
before sending a soft reminder via an email.

PART B

1.00 TABLE OF CONTENTS
2.00
3.00 Introduction
4.00 Purpose of Report and Valuation
5.00 Scopes of Work
6.00 Date of Valuation
7.00 Inspection and Referencing
8.00 Location of the Subject Property
9.00 Neighbourhood Developments
10.00 Descriptions of the Subject Property
11.00 Particulars of Title
12.00 Planning Provision
13.00 Lease Agreement
14.00 Occupancy Status
15.00 Public Utilities and Services
16.00 Basis of Valuation
17.00 Methods of Valuation
Evidences of Value
Opinion of Value

APPENDICES -Location Plans
Appendix A -Floor Plans
Appendix B -Photographs
Appendix C -Certificate of Fitness for Occupation (CFO)
Appendix D -Tittle Search Document
Appendix E

REPORT AND VALUATION

OF

A PRIVATE LEASE ON
PTD NO. 115554

HELD UNDER TITLE NO. HSD 221658
MUKIM OF PLENTONG

DISTRICT OF JOHOR BAHRU
STATE OF JOHOR

(INDUSTRIAL PREMISES)
BEARING POSTAL ADDRESS

PLO 492, JALAN KELULI 12
KAWASAN PERINDUSTRIAN PASIR GUDANG

81700 PASIR GUDANG
JOHOR

[hereinafter referred to as ‘the subject property’]

1.00 Introduction:

Report and valuation of a a plot of vacant commercial land identified as Lot No. 118324 held
under title No. GRN 155575 on mukim and district of Klang state of Selangor

2.00 Purpose of valuation and report:
This report and valuation is prepared in determining the Market Value of the subject property
for purchase consideration prupose.

This report and Valuation shall therefore be used solely for the above stated purpose and shall
not be used for any other purposes except that mentioned above without Ian scott International
(M) Sdn Bhd prior written consent.

3.00 Scopes of Work:
This Report & Valuation is prepared with the following scopes of work: -
(i) Field visit and physical inspection of the subject property.
(ii) Title search to determine the title particulars and legal status of the subject
property.
(iii) Verbal enquiry at the relevant authorities.
(iv) Market observation of the surrounding area.
(v) Analysis and valuation.
(vi) Submission of Full Valuation Report.

4.00 Date of Valuation:
For the purpose of this valuation exercise, the material date of valuation shall be the
date of inspection as mentioned above, i.e. 25th September 2019.

5.00 Inspection & Referencing:
The inspection of the subject property was conducted by Chong Wei Lan and Nur
Adzlyn Hamidon of Ian Scott International (M) Sdn. Bhd.

6.00 Location of the Subject Property:
The subject property comprises a plot of vacant commercial land located within a
locality known as Bandar Bukit Tinggi 2, approximately 6.5 kilometres due south and
16.5 kilometres due south east of Klang town and Shah Alam city centre respectively.
Access to the subject property from Klang town is via Jalan Jambatan Kota, Persiaran
Tengku Ampuan Rahimah and finally onto Jalan Klang-Banting for a distance of
approximately 2.0 kilometres until reaching the four-corner junction. Thereafter, make
a u-turn and continue for a distance of about 200 metres to reach the subject property.
The subject property is located on the western side of Jalan Klang-Banting.
Althernatively, the subject property is also accessible from the four-corner junction via
Persiaran Batu Nilam 1, thereafter turning right onto Jalan Batu Nilam 21 and finally
onto Lorong Batu Nilam 21C.Location Plans of the subject property are enclosed in
this Report as APPENDIX A for easy reference.

7.00 Neighbourhood Developments:

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

Notable industrial premises within the immediate vicinity amongst others are Yasawa Sdn
Bhd, Topflight Plastic Sdn Bhd, Hitachi Chemical (Johor) Sdn Bhd, Saniton Ceramic (M) Sdn
Bhd, Big Industrial Gas Sdn Bhd, Kong Long Huat Chemicals Sdn Bhd, XH Universal
Forwarding Sdn Bhd, Southport Port Sdn Bhd and MSC Pasir Gudang Depot.

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

NOTABLE DEVELOPMENTS DISTANCE FROM THE SUBJECT

PROPERTY

Honda Autoparts Manufacturing 790 metres due south

Taman Bukit Layang-layang Park 1.0 kilometres due northwest

Pasir Gudang Motor Racing Circuit 1.1 kilometres due northwest

Muzium Layang-layang Pasir Gudang 1.1 kilometres dua northwest

SMK Pasir Gudang 1.3 kilometres due southwest

Hospital Penawar 1.6 kilometres due southwest

Klinik Kesihatan Pasir Gudang 1.7 kilometres due southwest

Majlis Perbandaran Pasir Gudang 1.8 kilometres due southwest

(MPPG)

Econsave Cash and Carry 1.8 kilometres due west

Pasir Gudang town and Johor Bahru city centre is approximately 3 kilometres south-west and
28 kilometres west respectively of the subject property.

8.00 Descriptions of the Subject Property :

The descriptions of the subject property are as follows:

8.01 The Site :

The site comprises an intermediate lot of a leasehold industrial land identified
as PTD No. 115554, which is trapezoidal in shape. It has a frontage of about
227.406 metres (746 feet) onto Jalan Keluli 12 and maximum depth of about
218.448 (717 feet).

The site is generally flat in physical terrain and lies at about the same level with
the frontage road, i.e. Jalan Keluli 12. The titled land area of the subject
property is 5.2095 hectares (12.873 acres).

The site boundaries of the subject property are demarcated partly by chain link
fencing and partly by corrugated metal sheet 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 parking bays are of
tarmac.

8.02 The Buildings:

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

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

and motorcycle, TNB, painting area and waste disposal area.

Further description of the above buildings are as follows:
(i) A single storey workshop

(a) Construction

Building Frame Steel portal framework
Roof Metal corrugated sheets on
steel roof trusses
Walls Platered and painted
brickwalls as well as metal
corrugated cladding

Doors Metal roller shutter and timber
flush units
Windows Aluminium framed glass
casement
Eaves Height 8 metres (26 feet)
Building Condition Good

(b) Accommodation

The accomodations and floor finishes of the building are as follows:-

Accommodations Floor Finishes
Workshop Area Cement rendered
Storage Area Cement rendered

(ii) An annexed double storey office building

(a) Construction

Building Frame : Reindorced concrete framework

Roof : Concrete flat roof

Ceilings : Mineral suspended ceiling boards

Walls : Plastered and painted brickwalls / partition walls

Doors : Glass and timber flush units

Windows : Aluminium framed glass casement\

Acces to the : Two (2) reinforced concrete staircases
Upper floors

Building Condition : Good

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

Accommodations Floor Finishes
Ground Floor

Reception Ceramic tiles
Office room Ceramic tiles
Prayer room (M & W) Carpet felt
Toilet (M&W) Ceramic tiles
Pantry Ceramic tiles
Store room Cement rendered

Accommodations Floor Finishes
First floor
Office room Ceramic tiles
Meeting room Carpet felt
Store room Cement rendered
Toilet (M&W) Ceramic tiles

(iii) Ancillary buildings
a) Guard house

This single unit of 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 of plastered and
painted brickwalls. The door is of timber flush and windows is of glass
window.

The floor finishes of coment rendered.

b) Open-sided shed for cars and motorcycles

It is an open-sided shed constructed of steel frameworks covered with
aluminium roof sheets. The floor is of tarmac.

c) Tenaga Nasional Berhad (TNB) sub-station building.

It is a single storey building constructed of reinforced concrete
framework with plastered and painted brickwalls with flat concrete roof.
The floor finishes are of cement rendered

This TNB sub-station building is currently being used exclusively for the
operation activities of the subject property

d) Painting Area

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

e) Waste disposal area
It is an open space for waste disposal and constructed of concrete
framework and partly enclosed. The floor is of cement rendered.

At the date of our inspection, we have been informed by the client that
the approximate age of the buildings is about 27 years. We further
noted that all the buildings were in a good condition.
The Certificate of Fitness for Occupation (Sijil Untuk Menduduki) vide a
Certificate No. 40/94(PG) and 157/93(PG) were issued by Pihak Berkuasa
Pasir Gudang dated 7th October 1993.

8.03 Built-up Areas
The built-up areas of these buildings are as follows:-

Buildings Built up areas (sq. metres) Built up areas (sq.feet)

Workshop 1,350 14,531

Office 330 3,552

Ancillary Buildings 945.8 10,180

Total 2,625.8 28,263

The floor plans and photographs of the subject property are attached with this Report as APPENDIX

B and APPENDIX C respectively.

9.00 Particulars of Title:

We have conducted a land title search at the Pejabat Tanah Dan Galian Johor on 25th

April 2019, confirming the details of the title particulars of the subject property as

follows:-

Title. No. : HSD 221658

Lot No. : PTD 115554

Mukim : Plentong

District : Johor Bahru

State : Johor

Tenure : 60 years leasehold interest expiring on 23rd February
2055 (the unexpired term of lease is approximately 36
years)

Land Area : 5.2095 hectares (12.873 acres)

Quit Rent : RM10,941.00

Category of Land Use : Perusahaan/Perindustrian

Expressed Condition : i) Tanah ini hendaklah digunakan untuk kilang bagi tujuan
Perusahaan Sedehana dan kegunaan lain yang
berkaitan dengannya, dibina mengikut pelan yang
diluluskan oleh Pihak Berkuasa Tempatan yang
berkenaan

ii) Segala kekotoran dan pencemaran akibat daripada
aktiviti ini hendaklah disalurkan / dibuang ke tempat-
tempat yang telah ditentukan oleh Pihak Berkuasa
Berkenaan

Iii) Segala dasar dan syarat yang telah ditetapkan dan
dikuatkuasakan dari semasa ke semasa oleh Pihak
Berkuasa Berkenaan hendaklah dipatuhi

Registered Owner (s) : PERBADANAN JOHOR

Restriction In-Interest : 1. Tuan tanah selepas nama Perbadanan Kemajuan
Ekonomi Negeri Johor tidak boleh memindahmilik,

Encumbrances mencagar, memajak atau melepaskan dengan apa acara
sekalipun, termasuk dengan menggunakan Segala surat
perjanjian yang bertujuan untuk melepaskan/menjual
tanah ini tanpa kebenaran Penguasa Negeri
:-

Endorsements : The title is presently sub-leased to KAYPI SOUTHERN
TERMINAL SDN. BHD for a period of 30 years expiring
on 11 November 2023 vide the Presentation No.
23178/1998 registered on 8th May 1998

A copy of the title search document is attached as APPENDIX E.

10.00 Planning Provisions :

The subject property is located within an area zoned for industrial use and the present
user conforms to the usage.

11.00 Lease Agreement :

Based on the Lease Agreement between Perbadanan Kemajuan Ekonomi Negeri
Johor (the Lessor) and Kaypi Southern Terminal Sdn Bhd. (the Lessee) dated 28th
October 1993 provided to us by the Client, we noted that the Lessee’s interest on the
subject property is regulated and secured under a 30 years lease term which will expire
on 11th November 2023. The remaining term on the lease is about 4 years.

As per the land title search above, we presumably the registered owner of the land title
i.e. Perbadanan Johor is the same entity as Perbadanan Kemajuan Ekonomi Negeri
Johor.

We also wish to highlight that the Client, POS Logistics Berhad is the holding company
to Kaypi Southern Sdn. Bhd.
12.00 Occupancy Status :

At the time of our inspection, we noted the subject property was occupied and operated
by POS Logistics Berhad except part of the land, i.e. measuring about 2 acres was
tenanted to HH Olympia with a monthly rental of RM8,000.00 per acre and the tenancy
is renewable every two (2) years.

13.00 Public Utilities and Services :

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

Majlis Perbandaran Pasir Gudang (MPPG) provides the usual public amenities and
services.

Public transportations such as buses and taxis are available within this vicinity.

14.00 Basis of Valuation :

Our basis of valuation is the Market Value.
Market Value is defined as the estimated amount for 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.
15.00 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 and adopting as a yardstick recent transactions and 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 value components of the land 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, whilst making due
allowances to factors of location, plot size, accessibility and other relevant
factors.

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.

iii) Investment Method

This method of valuation involves the estimating the current rental income that
can accrue to this property if it is made available for letting based on the usual
tenancy term in the open market. The future rental income takes into
consideration the information and projections as provided by the Client which is
based on tenancy renewal terms as well as future market anticipation. From this
gross income, a deduction is made for the void provision and landlord’s outgoing
in owning and managing the Subject Properties as a form of investment. The
remaining net income is then capitalized at a suitable net yield.

16.00 Evidences of Value:

Our investigations revealed the following sale and rental evidences of vacant industrial;
plots within the vicinity of the subject property: -

a) Sale Evidences

Details Comparable 1 Comparable 2 Comparable 3 Comparable 4 Comparable 5

Properties PT 236190 (Lot PLO 777, Jalan PT 236189 (Lot Lot 206, Jalan Kg PTD 111296,
2941), Off Jalan Keluli, Kawasan 2941), Off Jalan Baru Ban Foo, Jalan Sri Plentong
Perindustrian Pasir Johor Bahru - Kota Taman Perindan
Johor Bahru - Cemerlang 6, Taman
Kota Tinggi, Off Gudang Tinggi, Off Perindan Plentong
Perindustrian
Perindustrian
Gemilang Gemilang

Type Vacant industrial Vacant industrial Vacant industrial land Vacant industrial Vacant industrial
land land land land

Title Nos. HSD 580751 PN 70453 HSD 580750 Geran Mukim HSD 212198
788

Land Area (Sq. 129,166.93 225,826.84 226,042.12 359,386.30 215,997.02
ft)

Tenure Freehold 66 years leasehold Freehold Freehold Freehold
expiring on 31st May

2069 (having an
unexpired term of
about 50 years)

Considerations RM3,633,000.00 RM7,750,000.00 RM9,227,794.00 RM9,500,000.00 RM12,959,340.00

Dates of 27-Sep-2018 13-Sep-2017 21-Feb-2017 18-Aug-2016 10-Jul-2015
Transaction

Vendors Assured Land Samata Industries Assured Land Sdn Fortune Systems Ultra Dynasty Sdn
Sdn Bhd Sdn Bhd Bhd
Sdn Bhd Bhd

Purchasers Great Equity Sdn Ranama Resource Sanrix Paper Sdn Mohm Chemical Easa Trading Sdn
Bhd Sdn Bhd Bhd
Sdn Bhd Bhd

Analysis per RM28.13 RM34.32 RM40.82 RM26.43 RM60.00
(Sq. ft)

a) Rental Evidences

Details Comparable 1 Comparable 2 Comparable 3 Comparable 4 Comparable 5 Comparable 6

Location Kawasan Kawasan Kawasan Kawasan Kawasan Kawasan
Perindustrian Perindustrian Perindustrian Perindustrian Perindustrian Perindustrian
Tanjung Langsat, Pasir Gudang Pasir Gudang
Tanjung Pasir Gudang Tanjung Tanjung
Langsat, Pasir Langsat, Pasir Langsat, Pasir

Gudang Gudang Gudang

Type Vacant Vacant industrial Vacant Vacant Vacant Vacant
industrial land land industrial land
industrial land industrial land industrial land

Land Area 1.25 acres 3.00 acres 10.00 acres 2.10 acres 2.10 acres 4.50 acres

Asking RM15,300.00 RM42,000.00 RM87,120.00 RM32,000.00 RM27,000.00 RM36,000.00
Rental

Asking RM0.28 RM0.32 RM0.20 RM0.35 RM0.30 RM0.18
Rental/sq. ft.

Based on the above, we noted the transactions of vacant freehold industrial land as
well as leasehold land with long remaining lease term ranging from RM26.43 per sq. ft
to RM60.00 per sq. ft.

However, these transactions are incomparable with the subject property as the subject
property is held under lessee’s interest which having about 4 years remaining terms.

Therefore, for this purpose of valuation, we have relied on investment method to arrive
at our opinion of market value as follows: -

i) Rental rate at RM0.17 per sq.ft. which equivalent to gross annual income of
approximately RM1,112,000.00;

ii) Less the outgoings at 15% and operation cost per annum; and

iii) A yield of 15% was adopted due to higher risk of the subject property which
only having a remaining lease term of about 4 years.

17.00 Opinion of Value:

In our opinion, the Market Value of the private lease interest on the subject property
identified as PTD 115554, held under Title No. HSD 221658, Mukim of Plentong,
District of Johor Bahru, State of Johor bearing postal address PLO 492, Jalan Keluli
12, 81700 Pasir Gudang, Johor, with the benefit of an unencumbered private lease
interest having about 4 years unexpired term, with vacant possession and also subject
to the above provisions is Ringgit Malaysia Two Million Only (RM2,000,000.00).

The above value is apportioned as follows :-

Descriptions Market Values
RM1,800,000.00
i. Land RM200,000.00
ii. Buildings RM2,000,000.00

Total

APPENDIX A

APPROXIMATE LOCATION
OF THE SUBJECT PROPERTY

LOCATION
PLAN 1

APPROXIMATE
LOCATION OF THE
SUBJECT PROPERTY

LOCATION
PLAN 1

THE SUBJECT
PROPERTY

AERIAL VIEW

BUILDING PLAN – OFFICE BUILDING AND
WORKSHOP AREA

FLOOR PLAN – GROUND FLOOR

FLOOR PLAN – FIRST FLOOR

APPENDIX B

General view of the subject property as seen from Jalan Keluli 12
General view of the main office building

General view of the workshop area
Internal view of the workshop area

Office Area Meeting Room

Office Hallway Reception Area

Guard House Vehicles Paint Area

Vehicles Parking Area Rest Area

APPENDIX C





APPENDIX D