OCBC Bank signs RM299.5 million bridging loan agreement with Astrum Ampang as part of agenda to promote sustainable urban housing among millennials
The Astrum Ampang project comprises 5,228 SoHo (small office/home office) transit homes, Rumah Mampu Milik (RMM) SoHos and serviced apartments along with 27 retail units with a total gross development value (GDV) of RM1.6 billion, with a first-of-its-kind SoHo Transit concept alongside a proposed directlinked pedestrian bridge access to the Jelatek LRT Station to promote the use of public transport.
Astrum Ampang units are priced at as low as RM230,000 to offer the opportunity to single executives, start-up entrepreneurs, young professionals and first-time homebuyers to own a property in the urban city area.
According to OCBC Bank Managing Director and Head of Corporate & Commercial Banking Mr Jeffrey Teoh, the bridging loan agreement comes at a time of growing market recovery and the increasing need to provide sustainable options for millennials to own quality homes in the city.
“Sustainability is undoubtedly the way forward, and affordability must factor in the mix for the younger generation who would be making the single most expensive purchase in their lives. We are pleased to commit the bridging loan amount for the Astrum Ampang project because the development aspires to meet the two criteria of being sustainable and affordable. We trust the development will receive buoyant interest from millennials as the country moves into endemicity. We certainly see growing appetite for sustainabilitylinked properties and would like to finance more of these,” he said, drawing reference to OCBC Bank’s other sustainable financing initiatives in recent times.
Speaking for Astrum Ampang, Setia Awan Group Central Region Chief Operating Officer Mr James Bruynssaid the bridging loan enables the company to progress without obstacles toward completion of the first phase in 2026.
“Financing from a bank that has sustainability as a significant part of its agenda counts for a lot as there is a shared principle for engaging in the exercise. We are like-minded in our recognition of the heavy vehicle traffic and pollution that are increasingly becoming issues of concern, not to mention the rising costs of purchasing and maintaining motor vehicles, parking payments as well as fuel. The Jelatek LRT Station which is only 150 meters from Astrum Ampang certainly provides its residents with a sustainable and efficient transportation option.
“Given the softer housing market conditions in recent times, Astrum Ampang focuses on the development of more affordable housing segments with phase 1 of this residential development priced at a low entry cost of RM230,000 to RM270,000 and slated for completion in 2026. This is below the National Property Information Centre median house price of RM310,000 (as at 2021) and well within the reach of Bank Negara Malaysia’s median household income at RM5,209, addressing the mismatch of supply-demand of the current property sector.
“Ultimately, we intend to increase home ownership among the B40 and M40 (Bottom 40% and Middle 40% income groups), which is part of our corporate social responsibility. We aim to establish a market presence in the Greater Klang Valley as a responsible developer that provides quality and affordably-priced homes,” he said.