OCBC Bank has signed an RM299.5 million bridging loan agreement with Astrum Ampang Sdn Bhd for the upcoming mix development project comprising 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.
Astrum Ampang units are priced at as low as RM230,000 with the target audience of single executives, start-up entrepreneurs, young professionals, and first-time homebuyers to own a property in the urban city area.
OCBC Bank Managing Director and Head of Corporate & Commercial Banking Jeffrey Teoh commenting on the bridging loan agreement said this 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.
“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 sustainability-linked 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 James Bruyns said 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.
The affordable housing project with low entry cost of RM230,000 to RM270,000 and slated for completion in 2026 which is reputed to be 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.
“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.
