Starting this thread because I wanted to share my views and feedback on this project.

Previously, there were 2 thread created by forumer @hoe_blackout but he has removed it after I revealed the potential risk behind the project. Not wanting to let my effort go down the drain, I've decided to capture share my views on the whole project by creating my own thread. This is the original post of the thread:


Attached thumbnail(s)

My take on the project and the concept:

I stay in PD and feel that although there has been quite some development in recent years, such as the PD Waterfront project (with names like McDonald already in operation with Starbucks and Kenny Rogers coming soon), I still feel that it will be hard for these type of investment (GRR for hotels/resort).

Chances to flip is very hard as the market is very small, especially if you are looking at PD itself. And if the contract is not renewed after the first 3 years, what are you going to do?

Bear in mind, its 3+3+3, that means the 2nd 3 year contract renewal is subjected to the 1st 3 years operations. Will you be able to sell it after that? If no, then you would have to rent it out on your own. For a resort/hotel, that means you will be very busy as interested parties would most probably be short term guest (a few days only).

You would be lucky if you get a guest that wants to rent for more than 3 days (what's there in PD?!?!?)

While the returns for a short term/daily rental might be ok, it will also be very time consuming and energy sapping. Unless you have a few units, and also a maid to do the daily housekeeping once guest check out, I would prefer to avoid such investments.

There are many GRR schemes in Port Dickson (most of the resorts/hotels are sold based on this scheme) and a handful of them only are barely surviving, others are close to being dead.

And more importantly, on the developer:

Splash is developed by TANCO HOLDINGS BERHAD. So far, for the past 3 quarters for Financial Year 2013, the company has been making a loss of RM10million!

To make things worse, this company was once a PN17 (financially distressed) company few years back.

http://www.thestar.com.my/story.aspx?sec=b...iness%2f8760719

http://www.propertyguru.com.my/property-ne...ater-theme-park

Please do your due diligence before investing in this project.

For me, it is not feasible at all since the concept is hard to sell and it is a product of a very problematic company.

Apart from this, anything good in PD/Lukut ?

TANCO??? I thought they bankrupt? They are the DEVELOPER for BANDAR COUNTRY HOMES @ Rawang. But they abandone the township development after few years establishing Bandar Country Homes. They have a good concept for BCH but fail to execute it properly. i remember when i move in in year 96, there is hype about supermarket being built but guess what.... nothing is being done. Recently, i heard they are bankrupt and sell all the land in BCH to supplier and other party to get more capital for the company. I'm not sure how true but, the so called Supermarket is now being construct for ECONSAVE. hmm... since 96 until now. a total of 17 years. i don't think it's under the initiative of TANCO.

besides, BCH has a club house previous which is operated by TANCO under DutaPalm Resort. the whole club went into drain. Now, the club house is vacant for some times. i think at least 2 years vacant. i'm not against TANCO or Against the SPLASH Project. but i just wanna share out my disappointment on TANCO developer and at the same time, alert some investor.

i might be wrong. but for potential investor, pls do your own research. You may come to BCH @ Rawang to view the leftover of TANCO. BCH is coming up and booming now. but not because of TANCO. it's because of Anggun, Emerald Project and surrounding project such as Saujana Rawang and M Residence which is nearby BCH Township.

Thank you for sharing, very interesting points that I myself wasn't aware, about BCH.

Just like you, my main objective is to share what I know, especially regarding the developer, in hope that other investors don't fall victim to TANCO.

PD Waterfront service apartments would be a better bet.

Bro what u think of similar hotel project with GRR in Melaka. Would Melaka be a better bet especially if the location is quite central like in taman Melaka raya? Walking distance to dataran pahlawan n main mahkota parade

TQ for sharing, guys

Incidentally, I am quite familiar with Malacca too since I travel there every week, for work related stuff.

Malacca's property scene is much more active, with more volume. I am guessing you are referring to Straits Residence? My response will always be, 'What's next once you get back the property?' or 'What's next if they don't extend the contract anymore?/Only for the first 3 years?'

Worth to highlight that it will be a real challenge to handle it on your own, especially if the rent is for short term only/a few days. The high ROI (6%) that developer is offering is based on the daily rental model, which will yield higher returns but at the same time, take much more effort since there is housekeeping and so on.

Unless you have a few units and have the time, and also a maid, I think it's better to look at other opportunities, it's just not worth the hassle, in my opinion. Market/demand for rental will be there, but are you up to it to do the dirty work on a daily basis?

Meet guest, collect deposit, record details, pass to them the keys, collect back keys, check suite condition, do housekeeping.
That's one complete cycle.

Just wondering given the demand for accommodation in Melaka, are there agencies that will rent in bulk from owners and then manage like a hotel business? Believe got demand will have supply...??

For Straits Residence case, believed that it has the lowest entry for a strategic location GRR project in Melaka compared to all the others like the Shore, Hatten, 99 Residence etc. The 300+ sq ft unit was selling about RM220,000 with GRR contract for 6 years (not 3). The rest entry level are above RM300,000 although bigger unit size but since the purchaser is not staying does not really matter.

So after 6 years if all GRR honoured, the carrying cost is only RM140k. One year 14 days free stay also worth RM2800 assuming RM200 per nite. In year 2020, believed a pigeon hole in center of Melaka should be worth more than that...if can find a agency to continue to manage renting out better still

What say u, sir?

You have to remember, it will still be very hard because there is simply not enough volume, if done by agency.

Let's take some numbers so that it's clearer. Straits Residence will be managed professionally for 6 years, with 300 units, 6 full time front desk staff, and 10 full time housekeeping staff. If there is an agency, and let's say they manage to secure 10 units, they will still at least need 2 full time runners (equivalent to mobile front desk staff) and at least 2 housekeeping staff. Cost per studio unit to serve is already high. Plus, what track record do they have? I'm assuming there are such agencies around and already in operation, no doubt about that. But they are most probably small ones with no solid track record. Those that are good at it, will have grown to be the management companies of hotels and resorts that we know of.

Another thing that you need to take into account when doing ROI for GRR investment product is the cost to refurbish. If I'm not mistaken, the cost of refurbishment is equivalent to 1 years rental! That means, for your 6th year, you will not be receiving any rental at all.

Thus, your ROI = [(rental per month * 12 months * 5)/ (12 months * 6)] / cost of your studio unit. This will work out to be just under 5%, and not 6% as claimed by the sales agent.

I'm a sucker for details, so pick up all this points, besides personal experience. I have a GRR property too but its for students and in KL.

You are right, in 2020, that pigeon hole in centre Melaka should be worth much more than what it is selling for right now. But again, to remind you, liquidity is not really there, relative to properties in KL, Penang or JB. That's my only real concern, where your money will be stuck and might not able to roll when you want to.

i already book that unit

Which unit u booked ar?

So Hattan square and other grr in Melaka can't buy?
Pd all lost hope already

what about projects such as Elements which has the same scheme? Guaranteed returns for the first few years. Elements is a shopping mall by the way, developed by Hatten. Will shops be more promising compared to a pigeon hole?

And, thx for the heads up on the Splash Park project. But if it can really pull through, it would be a nice place to visit someday. =)

for investor, must be ready for exit strategy. So any sub-sale buyer or not ?

GRR is attractive as this property type which is resort/ hotel is consider high risk, thus, must be high enough to cover risk.

I have 2 unit bayu beach resort for sale..850sft..2bedroom 1 bathroom..facing pool and sea..grr or can own stay..rm220k nego..1 night can rent minimum rm300 and rm500 for peak season..

The propose highway linking PD to klia also cant help PD?

The main attraction is the free beach. The increase inflow can improve more pisang goreng, nasi lemak stall only. How much potential u expect from these biz activities?

port diskson wor. beach already so jialat. sure die investment lar. and no proper planing on beach. sibeh jialat lar.

This post has been edited by HELLO HELLO: Jun 27 2014, 09:20 PM

Me know a fren who bought unit at PD Waterfront or something those chalets, jialat he said

Thank u for kind sharing

Wow, it's almost a year since I started the thread. Hope nobody got caught in the investment. Unless one is based there in PD with lots of time, as mentioned previously, stay far away from such investments.

PD area cannot buy 1. Already oversupply unless you can make it like Avillion or thistle hotel.

Even the project can successfully completed, guarantee return got alot of T&C that we do not know which u need to read carefully.

If im your friend, i will cancel the deal, lose the downpayment and find a better project.

anything near beach sure die. due to islam malaysia law. no sexy bikini girl, all balut balut, no nice drinking place near beach. no pet/dog beach.. no nice activity or sport. without all sure jialat. some more lagi if ada hudud law lagi jialat.

invest in west peninsular malaysia near beach sure die kau kau 200%. all beach look low class and dirty. no nice hot girl scene. beach never preserve nicely.

This post has been edited by HELLO HELLO: Jul 3 2014, 10:47 AM

Yeah, agree on that. Since he/she has already committed, no point still trying to bring up all the risk and cons of the project. Rather, it's always about moving forward. Afterall, whether a property investment is acceptable or not depends on individual preference.

If he/she is comfortable with it even though there is minimal capital appreciation or not much liquidity, then good for him/her.

Last time used to go to PD and work, to me PD have its potential, it has many sand beaches where people can picnic and etc... I still remember when I was young my paretns used to take me there.. Unfortunately, lack of govt incentive at a long period have made the beach dirty and you may see many projects are being abandoned there. Thou some reviving efforts have been made by the current MB, but it is still far from achieving the hottest tourism place in Malaysia like those days....

Maybe more initiative from the govt to make it a better place for tourism can make PD a nice and flourishing place to invest. Many things need to bulk up, the roads, transportation to get there, places to visit and see and etc...

I had put in RM5k for them as booking fee.
Now, i see all comments...
Help pls !

Best to seek a full refund then. If got small admin fee, then just let them have it. This project is really very risky, from my personal evaluation. Better to be safe than sorry.

Hmm...

Only saw booths propping up recently on this project.

Not sure about the sales though...

I had cancelled it. They wanted rm300 as their admin fee.
Many thanks to you and all.

If you want to take them on, you can take it to the housing tribunal. Under the law, they are not allowed to collect deposit, although almost every developer does that. You might as well give it a shoot, nothing to lose.

From your summary.........looking at it....nice place for those 60 70 ages....

Any of you been to pd waterfront? I believe there haven fundamental changes. Centralized severage and waste disposal had been in forced and beaches condition improved substantially. Most pd hotels enjoy good occupancy now. Town centre now at pd waterfront with many standard eateries which not available previously.

I guess the tide had changed. But the developer background is important. So I would consider tsr who developed pd waterfront. The rest too risky.

Bro or sis, I'm also put 5k deposit already. But after read a lot comment on this project, start worry jor....can you share how to request refund? Where you place your deposit? I'm place on Aeon Kepong.

I place my booking on 19/9/14 but until this week only got banker contact me for loan application. Also, the sales representative or lawyer didn't contact me at all for S&P arrangement, seems like unnormal. According my understanding, this project is manage by Impiana Hotel, within the 3+3+3 years, rental will pay based on 7% purchased price, no matter rent it out or not. Means that we no need worry the rent issue. Also, now the developer is Palm Spring right? Not Tamco....please correct me and give me more advice....many thanks to all sifu...

If you drive along the roads at PD, you see many abandon projs. Pick the fundamentally strong developers is more important than the concept or other elements in this part of world.

Last 2 weeks i went to PD for a team building ( my first time in PD ), i was shocked to see many abandoned high rise residential/hotel... I would stay away for any investment in PD, there are nothing much in PD, the beach are so so

I saw the marketing booth of this project. And seems a lot of negative has been put into PD development. In my opinion, yes there were many abandoned projects in PD during the 97 crisis, of which, Tanco was one of it. Others like MBf, Talam and etc fallen property giants too...

Btw, Tanco has exited from PN17 status after restructuring, and with its 400 acres in PD freehold land, suites in Jln Duta, Kuantan, Australia and England, minus its debts, the Company is in a very attractive valuation! Well, that's the financial part of the Company....

The project, with water themepark and Impiana hotel operator (reputable one) and low entry price.... Why not!? Primaland in PD seems to survive, Bukit Gambang at no where in jungle also can survive... Why not this project? With the heavily assets portfolio. Probably this project is future of revival of the fallen Tanco...

Nice sharing boss, 2 thumbs up for you!

Same consideration to the Elexxxx project at Genting~

If you manage to get the deposit back like me, never sign the LOAN and S&P agreements.
Just refer to the Sales Representative who had attended you for the refund.

3+3+3 is means the 2nd & 3rd year contract renewal is subjected to the 1st 3 years operations, and they do have the
right not to continue or renew the contract after 1st 3 years.

Sorry for the late reply.

i went to the booth yesterday and what i understand is same as you. any sifu have comments?
i yet to put any deposit.. but, interested in it....

Hi all,

Am thinking of this ‘Splash Park’ project too… Long time never visit PD and want to so thought try the new ‘Hisbiscus’ resort. Looks very nice and they are full house when I there. Nearby is this ‘Splash Park Impiana’ project and see got some construction there. Saw a few lorry and concrete material..

Also when I drive there I try nice new highway to another part of PD, (where Hibiscus is) I never see before. Seems a lot of road works along the jln Pantai. Also there is also another project called ‘PDone’ ( I saw billboard but dunno where site) is coming also.. this one got branded hotel…

Got this ‘mega’ project also: http://www.nst.com.my/node/84993

So ok la… got few good project coming up la. Hopefully one day we get to enjoy resort township like bali, Thailand etc….

This project seems like restarting again...

Wonder what is the opinion on this project with GRR 7% for 9 years...

About 300 units sold already, balance 100+ units.

This post has been edited by lch78: Jan 6 2016, 01:45 PM

The 9 years is a 3+3+3? If yes, do take note that the % could be possibly REDUCED after the 1st term of 3 years. Have a GRR project, the nett rental reduced by 10% for the 4th-6th year (2nd term of 3 years). Long list of reasons including GST and rising cost. Oh well....

i'm staying in PD. the project is like no movement.

anyone bought the unit there?
what is the completion date?

Just pass by the site, it seem a lot people working at construction site.

pd, gd luck.

I recently drove by the Spash park project site when I stayed at the hibiscus resort and I can see that there is active construction going on. I think this project will be absolute fun for the kids when completed. I mean, which kid (including big ones like me haha) wouldn’t like a day at a water theme park, right? It should be awesome!

So after that i did a bit of digging around and had ​a look at their masterplan. If they got lots of landbanks under them in PD, then it is in their interest to make sure the that the project will be completed. And from the construction, it seems to be moving along briskly. Anyway, hibiscus has so much business now I'm pretty sure they’ll also want a piece of the pie lol

Stay well and have fun, friends

Becareful.. plenty of opportunities later.. This splash project still got some way to go. Got money, can wait.... no harm....

Got picture update..

Curious to know..

Didn't manage to snap pics.. MIL and wifey having argument in the car so was busy being entertained lol

Their website should have though.

This post has been edited by BerserkDroid: Apr 26 2017, 06:16 PM

Hahaha argument more worth watching

Recently Property Hunter Group just come over to Sandakan, Sabah to promote this property investment & I did make a booking fee of RM3,000.00 on 30 Apr17.
The sales person told me that block 1 near the water theme park being full book & sold out to China invester. So I book 19th floor on the Center Block which 1-18 floor being 95% occupied. The developer TANCO tracking record also not positive & the project being running slow as per Splashpark website posted.
I need all your advice & feed back for further action.

never just listen to sale person.

and those sticker game...

If this project response is as overwhelming as described, the developer need not promote 2000 km away.

This post has been edited by icemanfx: May 4 2017, 09:13 PM

Yeap, I need to ask for the booking fee refund from the company. So far, anyone here being successful received the refund?

Obviously this is agent n fake account that lead u all buyer to buy. Damb sohai no see background check befor le buying

Diew now abandon like pr1ma port dickson

In sudah abandoned?

Yeap bro. It's dead. Six feet under. But on that note, although this project is dead, PD is certainly much more happening than it was 7 years back. Short term rental has certainly gained traction with platforms such as AirBnB more mainstream now. More F&Bs and also more tourist activities in PD. But all in all, still far from being a real estate investment heaven.

PD for the next 20 years also will not see any significant development.
If for a good retirement spot, it's good to consider as not far from Klang Valley.
Nothing more than that.

suddenly saw the facebook ads for this today ? is the water themepark done ?

Now tanco play ai port already..