Selangor citizens' private residence ownership scheme

SELANGOR CITIZENS' PRIVATE RESIDENCE OWNERSHIP SCHEME

Kelab Syabas: Rental rates not high

Writer: Alvin Yap
http://www.selangortimes.com/index.php?section=news&permalink=kelab-syabas-rental-rates-not-high

PETALING JAYA: The private operator of PJ Palms Sports Centre has refuted claims it charges high rental rates.

The new management of former Kelab Syabas said the rental is to recoup the RM4.2 million investment that was spent to refurbish the iconic club.

“We created a new look for the place to make it more family-oriented. We’ve placed new signages, installed new canopies and laid new flooring for our tenants,” said co-director David Solomon.

Solomon was clearing the air over allegations that his company, Sepang Mekar, is charging his tenants high rental since it took over PJ Palms early this year.

The swimming pool that was upgraded by Sepang Mekar at a cost of RM1.2 million.

Solomon pointed out that he had offered to renegotiate a lower amount after hearing their complaints.

Two tenants, Waikiki Bar, a pub, and a barbershop called Barber Joe, have complained that the new management’s policy to charge RM4.50 per sq ft rental space has caused a threefold increase in rental.

Waikiki Bar has to pay over RM19,000 instead of the usual RM5,000, and Joe, which used to pay RM500 monthly rent, now has to pay RM1,800.

They brought up the matter to Bukit Gasing assemblyperson Edward Lee, who says rental at PJ Palms is too high.

Lee also claimed that MBPJ was leasing the 30-year-old club to Sepang Mekar at 11 sen per sq foot.

Solomon said he had offered to lower Barber Joe’s rental to RM1,500 a month.

“He asked for 24 hours to consider it. But he never responded to the offer after that,” said Solomon.

He said Waikiki currently occupies the largest floor space in PJ Palms, and after consideration, was given a discount over non-rent generating space.

Solomon said he did not charge rent for some 1,000 sq ft as a result.

“I measured the storage room area and other utility spaces and did not charge them for the area,” he said.

Solomon said he still wants to extend the olive branch to Waikiki and Barber Joe by offering instalment plans for them to pay their rental.

“We can still sit down and discuss terms,” he said.

Meanwhile, MBPJ councillor Richard Yeoh said Sepang Mekar is guaranteed a tenancy of 12 years made up of four three-year terms based on the council’s appraisal of Sepang Mekar’s performance.

Yeoh also said the rent was based on a set figure of RM15,000 per month and not at “11 sen per sq ft” as alleged.

He also said Sepang Mekar investors had to recoup the capital investment of RM4.2 million.

Yeoh explained that MBPJ would get to keep the upgraded facilities consisting of a swimming pool, squash courts, indoor cricket hall and other amenities at the end of the tenancy agreement period.

He said it is not feasible for the sub-tenants to pay the same rental as it had done in the past as rental prices in the city had increased.

He further said that the terms and conditions of the tenancy agreements had been recommended by the city council’s committee on privatisation and investment.

He pointed out that out of six bids for the open tender, Sepang Mekar was chosen as it offered to turn the club into a “family-friendly” club.

“The tender process was carried out in an open and transparent process. It was also vetted by councillors during the full board meetings here at MBPJ,” he said.

He said previous operators had failed to maintain the eight-lane Olympic-size swimming pool, and also turned the premises into a gambling den.

Happy ending for Barber Joe

BY T.K. LETCHUMY TAMBOO

http://www.mmail.com.my/content/75638-happy-ending-barber-joe

LET THERE BE LIGHT: Power supply to Joe's Unisex Salon reconnected yesterday

PETALING JAYA: Barber Joe is here to stay as power supply to his salon in Jalan Sultan was reconnected on Sunday. Over the past month, the outlet had faced power cuts on weekends for refusing to agree to a new rental which was more than triple what he had been paying for many years.

"I had a meeting with PJ Palms Sdn Bhd two days ago and the matter was settled amicably when a more reasonable monthly rental of RM1,250 was agreed upon," said 60-year-old M. Inthirarasa, better known as Barber Joe whose clientele, built up over two decades, includes celebrities, sportsmen and corporate leaders.

"I don't want to lose my regular customers. I want them to know I'm back in business and here to stay."

PJ Palms are the new caretakers of the PJ Palms Sports Centre which also houses Joe's Unisex Salon.

Over the past month, The Malay Mail highlighted that Joe, who had been paying RM500 monthly to the previous management, felt the new rental of RM1,800 was exorbitant. He had also turned to Bukit Gasing State assemblyman Edward Lee for assistance.

PJ Palms director Seelan Chelliah, when contacted, said: "We brought down the rent significantly after negotiations with Joe, and took into consideration the longevity of his business, his age and the passion he has for his salon and his customers. We wanted a win-win situation."

Lee said the May 21 agreement between the Petaling Jaya Municipal Council and PJ Palms was the root cause of the unhappiness of the tenants there.

Councillors blast Lee for incorrect statement

By Jade Chan
http://thestar.com.my/metro/story.asp?file=/2011/6/21/central/8923503&sec=central

TWO Petaling Jaya City councillors hit out at Bukit Gasing assemblyman Edward Lee for issuing statements on the rent hike at the PJ Palms Sports Centre without fully understanding the tenancy agreement details.

Richard Yeoh and Derek Fernandez were responding to the story “Proprietors cry foul over higher rent under new agreement” published in Friday’s StarMetro.

The proprietors of Joe’s Unisex Salon and Waikiki Bar had claimed harassment by the building’s main tenant to sign a new tenancy agreement or leave the premises.

Proposals were called for via an open bidding. Of the half dozen or so proposals, Sepang Mekar’s was the most advantageous to the MBPJ and it offered only family-friendly facilities. — RICHARD YEOH

The proprietors also complained of a four-fold increase in their rental rate under the new agreement with Sepang Mekar Sdn Bhd, the main tenant of the centre formerly known as Kelab Syabas.

The agreement was signed between the Petaling Jaya City Council (MBPJ) and Sepang Mekar, who are the landlord and main tenant respectively.

Yeoh stressed that it was incorrect and misleading for anyone to say that the premises was let out at “11 sen per sq ft”.

“That calculation was evidently derived based on the total land area of the title that PJ Palms sits on of 136,500sq ft (12,681sq m) and the RM15,000 monthly rental paid by the head tenant, Sepang Mekar to the MBPJ,” he said.

“For the record, the area under the tenancy is less than half of the total land area, that is about 60,000sq ft.

“We must also take into account the RM4.2mil that Sepang Mekar is legally bound to spend within the first two years to rebuild and upgrade the facilities at the centre,” said Yeoh.

“The 136,500sq ft (12,681sq m) refers to the entire land area held under the title, including the Complex C carpark, which is not included in the tenancy.

“The fictitious ‘11 sen per sq ft’ rate is irrelevant as the agreement is not even based on per square footage, but on a lump sum of RM15,000 monthly rental.”

The tenancy agreement was signed on May 21, 2010.

Yeoh said if there was no breach of the agreement and both sides agreed on the subsequent rental reviews, Sepang Mekar was guaranteed a tenancy of 12 years made up of four three-year terms.

Unfair: The proprietors of Waikiki Bar and Joe’s Unisex Salon are crying foul of the harassment they have been enduring from Sepang Mekar, the main tenant of PJ Palms Sports Centre.

“Sepang Mekar will be paying a monthly rental of RM15,000 to the council for the first six years,” he said.

“Sepang Mekar will be given a rent-free period for PJ Palms for the first year, which is an international industry practice to help them cope with the revamp and upgrade period.”

After the first two terms, Yeoh said renewal of the agreement is subject to rental rate review with the increment cap at 10% for each renewal.

“Sub-tenancy agreement details are negotiated between Sepang Mekar and the sub-tenants. The MBPJ will not interfere in that unless there is a breach of the agreement by Sepang Mekar,” he said.

“The main terms and conditions of the tenancy had been recommended by the MBPJ PJ Palms Sports Centre Project sub-committee, and approved by the MBPJ Committee for Economic Development, Privatisation, Industry and Investment, and endorsed by the MBPJ Full Board.

“The entire exercise in handling the PJ Palms project was done in an open and transparent manner,” said Yeoh.

“Proposals were called for via open bidding. Of the half dozen or so proposals, Sepang Mekar’s was the most advantageous to the MBPJ and it offered only family-friendly facilities.”

Yeoh said the detailed negotiations and drafting work were carried out over a period of many months and the MBPJ was advised by the legal firm of Messrs Chooi & Co.

“The terms obtained for this tenancy are far superior to the terms in the demised tenancy which we had refused to renew as the level of maintenance of the premises was considered not up to the mark and our firm conviction that council premises should no longer be used for any form of gaming,” he said.

Yeoh added that as part of the agreement, the swimming pool rates at the club must be approved by the MBPJ.

In the agreement, the proposed rates are as follows: RM4 and RM5 for adults on weekdays and weekends respectively, RM2 and RM3 for senior citizens above 55 and children below 12 on weekdays and weekends respectively, and RM1 for people with disabilities on both weekdays and weekends.

“One of the issues raised recently was the distribution of some leaflets advertising a RM8 rate for using the pool during peak hours at night, which is a matter that the council will check on,” said Yeoh.

“The MBPJ will ask the PJ Palms management to update the committee on the progress of the project.

“We will mediate and act if the head tenant acts unfairly or does not adhere to the agreement.”

Fernandez said the MBPJ was getting a good deal because the community would be getting first class facilities costing RM4.2mil and the MBPJ was collecting RM15,000 in monthly rental.

“If the tenancy is terminated or expires, the RM4.2mil capital renovation will belong to the MBPJ without any compensation,” he said.

“The whole idea is to bring back facilities to the public. The previous tenant was operating a gambling den in a public facility. Sepang Mekar is restoring the centre with a first-class pool and several sports facilities.”

Noting the controlled swimming pool rates, zero gambling element and RM4.2mil investment, All-Petaling Jaya Residents Association Coalition (Apac) chairman Johan Tung Abdullah said: “As far as Apac is concerned, the swimming rates are reasonable and the rental for sub-tenants is strictly a commercial decision issue that must be left to market forces without interferences from any politicians.

“APAC is happy that the MBPJ now collects three times more rental from the new operators, and at the same time has new and better facilities for PJ ratepayers.”

Proprietors cry foul over higher rent under new agreement

By Jade Chan

http://thestar.com.my/metro/story.asp?file=/2011/6/17/central/8899864&sec=central

THE proprietors of Joe’s Unisex Salon and Waikiki Bar are being harassed by the building’s main tenant to sign a new tenancy agreement or leave the premises.

Salon owner M. Inthirasa (better known as Barber Joe) and bar proprietor Tony Siew whose outlets are in the former Kelab Syabas, now known as PJ Palms Sports Centre, said there appeared to be a force in asking them to sign the tenancy agreement and a testament to this was the intermittent disruption of power supply at their premises over the past three months.

“Sepang Mekar Sdn Bhd, the building’s main tenant, has been forcing us to sign a new tenancy agreement. This means we have to pay higher rent,” said Siew, who has signed the new agreement but yet to pay the deposit.

Joe said he had yet to sign the contract, as under the new agreement he would have to pay four times more than his rent now.

Crying foul: Edward (right) speaking at a press conference to highlight the dispute between Joe’s Unisex Salon and Waikiki Bar with Sepang Mekar, the main tenant of PJ Palms Sports Centre. With him are Tony (centre) and Joe (second from right).

“Under the new agreement, I will have to pay a monthly rental of RM1,700, as opposed to the current RM500 per month,” said the 61-year-old who has been operating his business for two decades.

“I have had no problems with the previous management, Bina Syabas, who managed the building for 18 years until their contract ended. The Petaling Jaya City Council (MBPJ) ran the place until Sepang Mekar won the contract last year.”

Siew, whose has been opearting his business for 15 years, said under the new agreement, the rent for his premises soared to RM18,900 from the present RM5,000.

“I had to lodge a police report last Thursday when my premises was padlocked without my knowledge. I had to reconnect the electricity supply on my own when it was cut off as I needed it restored to run my business,” he said.

Joe and Siew also complained about their inflated electricity bills, which they said were above Tenaga Nasional Berhad’s (TNB) commercial rates.

Bukit Gasing assemblyman Edward Lee said managed to get a copy of the agreement, which was signed between the MBPJ and Sepang Mekar, who are the landlord and main tenant respectively.

“The total area of Kelab Syabas is 136,500sq ft (12,681sq m), including the shops and swimming pool,” said Lee.

“Sepang Mekar is paying the MBPJ a monthly rental RM15,000 for the entire club, which after a quick calculation means that they are paying 11 sen per sq ft.

“However, Sepang Mekar is charging sub-tenants like Waikiki Bar and Joe’s Salon RM4.50 per sq ft, while the other sub-tenants are charged RM5.20 per sq ft.

“It appears that the main tenant is buying time (by cutting off the electricity) to force the sub-tenants to sign the new agreement.”

Lee said he met PJ mayor Datuk Mohamad Roslan Sakiman two months ago and he promised to look into the matter.

“Roslan later acknowledged that something was not right, but that the agreement had to be complied with as the councillors had already agreed to it,” he said.

“When nothing happened at the council level, I brought the matter up to the state government.

“Selangor Mentri Besar Tan Sri Abdul Khalid Ibrahim has requested for the matter to be tabled at the MTES (Selangor Economic Action Council).”

Lee said the issue was now with the state government and he hoped that the MTES would discuss the matter this week.

When contacted, Sepang Mekar managing director David Solomon expressed his disappointment and frustration, saying that both Waikiki Bar and Joe’s Salon had been difficult to sort out.

“We are not here to evict anybody. The agreement is still under negotiation with Joe’s Salon. Waikiki Bar has signed the agreement but have not honoured it,” he said.

“These two businesses have not paid their rental since March 2011. Their utility bills have not been paid on time either.

“The other 10 sub-tenants at the centre have been cooperative and paying their dues regularly.”

Even with the new agreement, Solomon said Joe’s Salon and Waikiki Bar would be paying lower than the average rental rate.

“The average rental for a basic commercial premises in PJ is RM6 per sq ft,” he said.

“We want to help these two businesses and tried hard to work with them and the MBPJ. We have a number of upgrades planned if they had come to an agreement on the tenancy details.”

Solomon said Sepang Mekar signed the agreement with MBPJ in May 2010, but only received access to the building in August 2010.

“We began refurbishment work in September 2010, and the new pool was completed within six months for its re-opening in March 2011,” he said.

“The delays have put a damper on the official launch of PJ Palms Sports Centre’s new look.

“The initial stage of its re-opening was scheduled for July 2011, with the new look to be fully unveiled by the end of this year.”

Solomon clarified that Sepang Mekar is the main tenant and was given the agreement to upgrade and refurbish the centre, while PJ Palms Sdn Bhd is the management company assigned by Sepang Mekar to manage and run the premises.

Barber Joe’s case goes to Shah Alam

By Azreen Hani
http://www.mmail.com.my/content/75166-barber-joe%E2%80%99s-case-goes-shah-alam

PETALING JAYA: THE predicament of M. Inthirasa, popularly known as 'Barber Joe', and other tenants at PJ Palms Sports Complex in Jalan Sultan will be discussed in the Selangor Economic Action Council (MTES) session today.

This was confirmed by Bukit Gasing State assemblyman Edward Lee when contacted by The Malay Mail yesterday.

"The Menteri Besar has already taken up the matter and he immediately called for the report papers to be presented in the meeting tomorrow (today)."

Lee had submitted the report to the MB's office about a month ago. "Hopefully, the matter would be discussed tomorrow (today) and we will just have to wait for the outcome."

He expressed regret over an agreement between the council and the sports centre management which he believed was the root cause of the trouble now. "There should not have been such an agreement in the first place."

The agreement dated May 21 was signed by a councillor and the mayor. Lee also told The Paper That Cares the city council and affected tenants had met earlier to work out on the issue.

Asked whether there were talks between the complex's management and councillors with him, he said: "No. Besides, there is nothing to talk about. Let the State government decide."

Earlier this week, The Malay Mail reported Barber Joe's 20-year-old business may be under threat after PJ Palms Sdn Bhd raised the rent to more than double the original, an amount he refused to pay as he felt it was unfair.

The company subsequently cut off power supply to his business premises during weekends.

UNCERTAIN FUTURE

By Veena Babulal

http://www.nst.com.my/nst/articles/2pllo/Article/art_print 

Tenants of PJ Palms Sports Complex claim they are unhappy with the rent hike

PETALING JAYA: Joe's Unisex Salon and Waikiki Bar and Restaurant which have been around since the heyday of the former Kelab Syabas in Jalan Sultan here are facing an uncertain future.

M. Inthirarasa and Tony Siew, proprietors of the salon and restaurant, respectively, claimed that they were being pressured by the management of PJ Palms Sports Complex which took over the dilapidated Kelab Syabas to sign a new agreement and consent to a rent hike or leave the premises.

Inthirarasa pays RM500 for his salon while Siew pays RM5,000 for the bar. With the new rates they must pay RM1,700 and RM18,900, respectively.

A document uncovered by Gasing state assemblyman Edward Lee showed an agreement between the Petaling Jaya City Council and the management of the PJ Palms, Sepang Mekar Sdn Bhd.

It revealed that the complex building was leased out to PJ Palms for 11 sen per sq feet.

The agreement on May 21 was signed by a councillor and the mayor.

The tenants claimed that the hike which has been in effect since March did not include utility bills and that they were made to pay electricity bills above commercial rates.

Inthirarasa has faced electricity supply cuts a couple of times since February while Siew faced a bigger predicament of having his bar sealed with a padlock by the management last week.

"I had to remove the padlock and protect myself with a police report. There was no warning or notice.

"They also cut my electricity supply even though I paid my last two bills which had jumped from RM3,500 to RM5,000," he said adding that last month's invoice from the management had yet to arrive.

"Since the council owns the place, I would like to pay the council the rent directly instead of them hiring a second and third party.

"I don't want to be forced out of this place which I've been operating my business in for the past 15 years," he said echoing Inthirarasa's sentiments.

Inthirarasa, who has been operating his business over the past 20 years, said that his electricity rates had also doubled from RM300 to RM600.

He also said that his electricity was usually cut on Sundays when he had a lot of customers.

He has now paid up the three months' arrears but claims his electricity supply is still cut occasionally.

"How can they cut off my power supply when I have not even received the month's bill," he asked.

Lee, who held a press conference on the matter yesterday, said that he had raised the issue at the state's weekly economic action committee meeting.

He also said the Menteri Besar would deliberate on the matter.

He also quoted clause 9.16 in a deed of assignment between the council and Sepang Mekar Sdn Bhd which states that tenants should not sign, transfer outlets and facilities in and around the facility without prior consent of the landlord which is the Petaling Jaya City Council.

"Based on this, the tenants should not be made to face these issues," said Lee.

He also said he had raised the matter with Petaling Jaya mayor Datuk Mohamad Roslan Sakiman who said that he would look into the matter.

It was earlier reported that Seelan Chelliah of PJ Palms had contacted Inthirarasa to reduce his rent.

They also claimed to have reduced his rent by about 30 per cent to be fair to him as his lot faces the street as opposed to the shop lots that face the pool.

However, Inthirarasa claimed that he was only given a discount of RM1.

Mothers' Day Celebration

Click on image to enlarge

Welcome relief for leasehold owners

Writer: Alvin Yap
Published: Fri, 03 Jun 2011
http://www.selangortimes.com/index.php?section=news&permalink=welcome-relief-for-leasehold-owners

SHAH ALAM: Residents with leasehold titles, which are fast expiring, are welcoming the RM1,000 policy that allows them to extend their leases for another 99 years.

Michael Muniandy was among those who were overjoyed to hear the news announced on Wednesday.

“It’s very good news indeed, especially for retirees like me,” said the former engineer with the Land and Mines Department.

The 78-year-old pensioner had just 20 years left on his lease for his home in one of PJ’s oldest neigbourhoods, Section 1, Jalan Carey.

He pointed out that the RM1,000 premium would be less of a financial burden on his savings and pension.

Similarly, music teacher Raymond Pragasam, 46, said the move would encourage more home ownership as prospective housebuyers have balked at having to pay hefty premiums to extend the leases.

“Our house in Section 4 has 55 years remaining [on our lease], but our neighbours around us have less than 10 years. This is good news for them,” Raymond said when met at Taman Petaling here.

Former public school teacher Ng Sik Poon, 81, said the RM1,000 amount was within the means of every resident in Petaling Jaya.

“Even if you are short of money, you would borrow the amount to secure the lease,” he said.

He pointed out that the move by the state government would assist middle-income families.

Ng added that he expects a “rush” at the Land Office as ratepayers would clamour to extend their leases.

“Too bad I just extended my lease a few years ago, and I paid quite a hefty sum based on the land size,” he said, who could not recall the amount offhand.

Pragas Marimuthu admits that he is lucky to stay on freehold land in Puchong. Nevertheless, he said it was very good news for leasehold landowners in Selangor.

The 50-year-old businessperson said the move would encourage citizens to own residential property.

“A lot of prospective housebuyers put off buying property around the Old Town and New Town housing area,” said Pragas.

He pointed out that when it came to the renewal of leases, buyers would be saddled with large amounts.

Pragas added that the unprecedented initiative showed that the government was “caring” towards the middle-income group.

Siti Hanim Mohd Nasir, 38, said the announcement was “very good news” as her home on Jalan 3/60 here has only nine years remaining.

According to her land title documents, the lease is at RM12.50 per sq ft, and the total area of her bungalow lot is around 3,400sq ft.

“I’d have to pay at least RM40,000 to renew the lease,” she said.

Section 3 Residents Association (RA) head Shamsuddin Hassansaid he was “shocked” upon receiving the news from Bukit Gasing assemblyperson Edward Lee.

“When I told my residents this morning, they told me to stop joking,” he said when met at the RA office here in Section 3, Old Town.

The 61-year-old retiree said the residents had bought all the daily newspapers in order to confirm the announcement.

He pointed out that many of the houses, some of them the oldest here in Petaling Jaya, have their leases expiring within 10 years.

Shamsuddin said it would have cost some of the residents between RM40,000 and RM50,000 to renew their leases.

“We are not earning very much, and many of us are pensioners,” he pointed out.

He said he would be accompanying the residents as soon as possible to the Land Office to take full use of the state’s initiative.

“On behalf of the residents here in Section 3, I want to say thank you very much to the state administration,” he concluded.