/// East Malaysia Property News
Billboard Properties with Great Returns
Naim Participated in the PH Expo
Naim Land, a top developer in Borneo showcasing projects from
Kuching, Bintulu and Miri at PH Expo 2014
Billboards or off-premise
outdoor advertising signs,
is available to advertisers
for display to the public.
But most of these signs do
not advertise the business
or other activity occurring
at the site on which the
billboard is located. The
larger and most common
types of billboards
are usually located
on leased property
adjacent to freeways,
highways and other major
thoroughfares.
The billboard site is
generally limited to
an area large enough
to accommodate the
billboard’s foundation. The
billboard owner generally
holds a leasehold interest
in the billboard site; fee
simple ownership in the
billboard site is usually
held by an unrelated
party that owns the
land contiguous to the
billboard site.
Landowners must
consider a few things
when they lease their
property for use by a
billboard company. The
net revenue of the sign
will be determined by
the location. Billboards
located in prime areas
facing roads with hightraffic normally fetch a
higher price due to larger
exposure.
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We all regularly drive
by billboards, but we
seldom think about the
economics of how they
work and what they pay
the landowner. So, it
comes as no surprise
that the average person
has absolutely no clue
as to how to handle the
negotiation of a billboard
lease on his property.
Billboard income is great
as long as it does not
stop you from selling or
developing your property
down the road. This risk is
largest potential downside
from having a billboard on
your property.
Unless you are certain
that there is a 0%
chance of your property
being used for different
purposes at some point,
every billboard lease
should contain language
allowing for removal in the
event of future plans.
However, billboard leases
are, in general, fairly
long-term instruments.
Typically there are two
interests in the billboard
site which are the leased
fee interest of the ground
lessor (the interest held
by the fee owner of the
billboard site) and the
leasehold interest of
the ground lessee (the
interest held by the
www.PropertyHunter.com.my
billboard company’s
interest). Lease lengths
average around 10 years.
Residential properties
fronting main traffic
routes generally are
priced lower and creative
investors, they have
maximised their passive
income by erecting a
billboard and leveraging
on the potentially revenue
genetrating business.
Some existing billboards
built on residential
property in Kota Kinabalu
are reportedly fetching
up to RM150,000 per
annum which could easily
pay of the value of the
property in 8 years or
less. This trend could be
a whole new investment
opportunity for many.
Naim Holdings Berhad,
one of Malaysia’s leading
developers participated in
the Property Hunter Expo
2014, the largest property
expo in East Malaysia held at
the Sabah Trade Centre.
A multi-award winning
developer and contractor
based in Kuching, Sarawak,
Naim showcased a range of
residential and commercial
properties in Kuching, Miri
and Bintulu. In addition to
exciting lucky draws, Naim
also offered attractive sales
packagers to expo goers.
Its senior manager for
property development,
Zamry Ibrahim said as all
Naim’s developments are
located in Sarawak’s key
growth areas, they provide
owners and investors
with unique investment
propositions.
“Our developments are
situated in Kuching, Miri and
Bintulu, the key growth areas
in Sarawak, where we still see
good property demand. With
aggressive developments
taking place led by the
Sarawak Corridor of
Renewable Energy (SCORE)
driving the state’s economic
growth, towns such as
Bintulu are experiencing an
economic boom, Zamry said
adding it’s time for owners
and investors to ride the
wave.
Naim featured its iconic
Bintulu Paragon and
Kuching Paragon integrated
developments, and Miri’s
Bandar Baru Permyjaya
development.
Zamry explained that
Naim’s Bintulu Paragon
Kuching Paragon
integrated developments
are noteworthy, not only
because of their locations,
but also their level of
integration, making them
one-stop hubs.
“Firstly, these developments
are located in prime
locations - for Bintulu
Paragon, the largest
integrated development to
impact Bintulu, it’s located
within Bintulu’s CDB, while
Kuching Paragon is situated
about 15 minitues and 10
minutes away from Kuching
ciy centre and the airport,”
Zamry said.
He added that Naim also
featured newly launched
condo development know
as Sapphire on the Park, a
component within Kuching
Paragon and Street Mall and
SOVO developments which
are components within the
Bintulu Paragon.
“For our Miri developments,
we will feature various
development components
within the Bandar Baru
Permyjaya which is
strategically located about
15 minutes from Miri city,
such as our newly launched
Bahagia Residences
apartments, which are
affordable and also Pusat
Bandar Phase 5 shophouse,”
Zamry said.
Those interested are
invited to call Gerald Sim
at 016 8866700 for more
information about the Naim’s
developments.