CONFIDENTIAL

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UIYIVERSITI TT]N HUSSEIN OI\N
MALAYSIA

FINAL EXAMINATION
SEMESTER II
sEssIoN 20l0l20lt

SUBJECTNAME VALUATION FORLAND

ACQUISITION

SUBJECT CODE BPE 2303 / BPE 23003

COURSE 2 BPD

EXAMINATION DATE APRIL / MEI 2OI1

DURATION 3 HOURS

INSTRUCTION ANSWER FOUR (4) QUESTIONS

ONLY FROM SIX (6) QUESTIONS.

THIS QUESTION PAPER CONSISTS OF IO PAGES

CONFIDENTIAL
 BPE 2303 / BPE 23003

Ql Notice to acquire for Lot No. 2367 Mukim and District of Batu Pahat, state of Johor had been
gazetted for acquisition on these dates:

Section 4 : 30th June 2001

Section 8 : 12th December 2001

Other details are as follows:

Purpose for a new highway

Title No Geran Mfim 2251
Lot area 3.062 acres
Area acquired 2.5 acres
Category of land use Agriculture
Tenure Freehold
Affiual rent RM18.00
Registered owner En SHA
Express condition for the cultivation of fruit trees
Other endorsement Malay Reservation

Upon inspection, you noted the following:

Terrain Flat
Cultivation Fruit Trees
Buildings 2 detached houses on tle acquired portion
a. A 2-storey house of permanent construction with a main floor area
of 2,500 sq. feet and you estimated the replacement cost at RMl00
psf.
b. A single storey detached house of permanent construction with a
main floor area of 1,500 sq.feet. Your estimate of the replacement
cost is RM80 psf.
Access metalled road.
Facilities connected to the water & electricity mains. Sewage is water-bomed.
Fencing chain link enclosing the site.

You went to the local authority and were informed that the area is zoned residential at a
density of300 persons per acre. There is a need to provide a 62 feet buffer zone along the
highway and no building is allowed to be built on the buffer zone.
 BPE 2303 / BPE 23003

You did some searches and found the following sales:

Lot no 1908 2553 2586 2590 2571

Land area 2.969 2.944 3.084 3.250 3.00
(acres)
Sale price 9,053,000 2,564,000 6,738,000 5,662,800 3,267,000
(RM) (tull share) (firll share) (full share) (tull
share) (full share)
Date of sale 13/05t200r 20/03/2001 t5/04/200r 18/08/2001 r5/02/200r
Tenure Freehold Freehold Freehold Freehold Freehold
Category of Building Agriculture Agriculture Agriculture Agriculture
land use
Express Residential Nil Nil Cultivation of Nil
condition fruit tree
Terrain Flat Flat Flat Flat Flat
Other Ni1 Malay Nil Nit Malay
endorsement reservation reservation

Based on the available above and suitable assumotions to:

(a) Prepare a valuation of Lot No. 2367 Mukim and District of Batu Pahat, State
of Johor.
(20 marks)

(b) Advise En SHA on his compensation claims arising from the land acquisition.
(5 marks)

Q2 The State Govemment intents to acquire a site in the centre of your town for the erection of a
20 storey office complex. It has therefore gazetted the site on August 24,1998 under Section
8 of the Land Acquisition Act 1960 (amended). On the site are the following two separate
freehold properties:

ProDerty A

A mission hall on a site of 0.1 hectare. The building is a plain single storey brick / plastered
one with tiled roof and measures 12 meters by 35 meters. There is space to park 20 cars at the
back ofthe hall. The hall is in regular use by religious body.

Prooerty B

A news agent and confectioners single storey shop on a site of 0.02 hectare comprising of a
brick built building with a flat roof. The building was erected in 1982 and measures 8 meter x
15 meter. The accounts of the business over the previous years show the following figures:
 BPE 2303 / BPE 23003

1996 1997 1998

Sales@M) 156,000 175,500 195,000
Net Profit (RM) 12,300 13,050 12,750

All ofthe property owners of the properties have asked you to act on their behalf in the
compulsory acquisition of the properties.

Based on the available above and suitable assumptions to:

(a) State what additional details (if any) you would require from each owner of
the properties for the compensation claims
(5 marks)

O) Prepare the compensation claims for each owner of the properties.

(20 marks)

Q3 En Suhaimi owns Lot Nos 2586 & 2587 of agricultural land located in Kampong Aceh in the
Mukim & District of Parit Sulong, State of Johor. Both of these lots are located within the
Kampong Aceh Malay Reservation Area and the titles are endorsed with 'Malay
Reservation'. They are freehold land with a provisional land area of 2.00 acres each and they
are fronting onto Jalan Aceh.

Lot No 2586 is built upon with a kampong house of temporary construction with a main floor
area of2,500 sq. feet and is in a fair state of repair. He has also built a small workshop at the
back for his car workshop business. This workshop is of timber frame structure covered with
comrgated iron roof sheets and a concrete floor with its sides open. The floor area of this
workshop is approximately 600 sq. feet and it is in a fair condition. Besides these structures,
the site is fenced with chain link fencing reinforced with barbed wire on top.

Lot No 2587 is built upon with a workshop measuring 40 feet by 50 feet. It is of timber frame
with comrgated asbestos sheets roof, open sided and concrete floor. There is a small oflice
building located at the rear ofthe workshop measuring l0 feet by 12 feet. It is of timber frame
with comrgated asbestos sheet roof, timber weatherboard wall cladding and concrete floor.
Both the buildings were built five (5) years ago and are let out to Salleh at a rental of
RMl,200 per month on a five (5) year lease with four (4) years unexpired term.
 BPE 2303 / BPE 23003

A portion of
land to be
acquired

.,. +
2/'

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Figure Q3: A portion of land to be acquired.

BotI Lot Nos 2586 & 2587 to Figure Q3) were gazetted under Section 4 of the Land
-(refer
Acquisition Act 1960 on 21"' November 2000 for the purpose of resettling the Malays who
were required to move from their Malay Reserved land which has to make way for a mosque.
The said acquisition was gazetted again on I't March 2001 under Section 8 of the Land
Acquisition Act 1960. The area acquired is a frontage portion of I acre for each of the two
lots. All the buildings on the land were found on the acquired portions.
 BPE 2303 / BPE 23003

Your investigations have revealed the following:

Lot no 2590 2602 2548 2s92

Land area l.) aA 4.5
(acres)
Land use Apriculture Agricultue Agriculture Agriculture
Description Flat & vacant Flat & planted with Flat & vacant Flat & vacant
old rubber trees
Location Fronting onto 2no layer from Jalan Fronting onto Fronting onto
Jalan Aceh Aceh and is 500 Jalan Aceh and Jalan Aceh and
and is 300 meters away from is 600 meters is 300 meters
meters north the subject property south ofthe south ofthe
of the subject subject subject
property propefi propefi
Malay No No Yes Yes
Reservation
Consideration 7s,000 75,000 60,000 210,000
(RM)
Date of Sale t/08/1998 2r/05/t999 2st04/t999 u08/2000

Based on the available above and suitable assumptions to:

(a) Advise En Suhaimi (a Freeholder's interest) on t)?es and amount of

compensation that he may entitle to claim.
(12 marks)

o) Advise En Salleh (a Leaseholder's interest) on b?es and amount of

compensation that he may entitle to claim.
(13 marks)

Q4 lot No 188 in the Mukim of Kajang, District of Hulu Langat, selangor is a plot of freehold
Malay Reservation agriculture land. It has a land area of 18.329 acres and is registered in the
name of Awang bin Sidek. It was gazetted by Section 4 of the Land Acquisition Act, 1960 on
25'o August 2002 followed by Section 8 on 25th October 2003. The land area acquired is
0.314 acres and is for a road project. The area of the severed portion llng between the
acquired portion and the adjoining Lot No ll47 is about 0.272 acres.

The scheduled land is an intermediate parcel of agricultural land. It is roughly trapezoidal in

shape and is generally flat. However it slopes steeply down towards Lot No 1147, a drop of
about 10 feet between the level of the scheduled land and Iot No 1147. It is planted with old
rubber trees which are still tapped. Unaware of the acquisition notice, En Awang built a iarge
shed in November 2003 to store his equipment at a cost of RM25,000. It has frontase onto an
 BPE 2303 / BPE 23003

unnamed metalled service road leading to a kampong. Incated in the vicinity are mainly
industrial and residential properties and plots of vacant land ripe for development.

Your enquiry at the Planning Deparfinent revealed that the subject property is located within
an area for industrial use.

The following sales evidences were available.

L,ot no 454 1860 11204 1030 448

Land area 3.25 15.5 23.4 4.1 3.5
(acres)
Date of sale 10/08/2002 t/03/2003 20/08/2003 t5/tt/2003 l0/08/2003
Sale price 2,r 00,000 5,400,000 10,000,000 2,800,000 2,300,000
(RM)
Land use Apgiculture Agriculture Agriculture Apriculture Agriculture
Malay No Yes No No No
reservation
Cultivation Vacant Rubber Rubber Rubber Vacant
Planning lndustry Industry Industry Industry Industry

Based on the available information above, you are required to:

Prepare a valuation and advise En Awang on the amount of compensation claims that he is
entitled to arising from the acquisition exercise of part ofhis land. Suitable assumptions may
be made to support your advice.
(25 marks)

Q5 PT 9099, Mukim & District of Petaling State of Selangor is a piece of land currently being
KM l, Jalan Sungai Tembaga.
used as a petrol station located at

PT 9099 has been gazetted by the State Govemment for compulsory land acquisition under
Section 4 of the Land Acquisition Act 1960 (amended) on 9'n June 1998 and it was again
gazetted under Section 8 of the same Act on 22od February 1999.

The land acquisition is for the purpose of upgrading and widening of Jalan Sungai Tembaga.

PT 9099, Mukim of Petaling with a land area of 0.4 hectare is held under a 99 years lease
expiring on 126 June 2089. The express condition stated in the title is that the land is to be
used for petrol pump and service station only,

The registered owner of the land is Timmy Sdn. Bhd and the land was leased to Petronas
Dagangan for a period of 60 years starting on l0th September 1993 and expiring on 9th
Seotember 2053.
 BPE 2303 / BPE 23003

The leaseholder of the land (Pehonas Dagangan) decided to appoint you as their valuer
regarding their claims ofcompensation for the compulsory land acquisition.

After site inspection you have gathered the following information:

o The whole lot will be affected by the acquisition exercise.

o The lot is fronting Jalan Sungai Tembaga, flat at road level.
o The building found on the subject lot is petrol station building constructed in 1995
with accommodation for sales area, manager's office, lubrication bay, canopy with 5
pump islands, NGV pump station, ramp, 5 underground tanks with capacity of 6,000
gallons each and a TNB substation. The building is of permanent construction with
ceramic tiles and cement screed floor, aluminium and fibre acoustic ceiling and
spandex roofing.
. The costs of constructing the petrol station from the building contract are as follows:
Building - RM713,289
Civil & Extemal works - RM414,808
Mechanical & electrical works - RM76,100
o Recent transaction of pehol lands in the Petaling district recorded prices ranging
between RMI32.60 psf to RMI63.40 psf.
o The proflts of the station for the past three years are as follows
Year kofitfRM)
1997 ana 9,)')
1996 344,308
1995 343,981

The leaseholder @etronas Dagangan) reckons that he has to move and relocate his business
elsewhere. Due to the relocation he anticipated that he will lose one year's profit due to the
waiting period for the construction of a new petrol station. He also expects a drop in profits
by 25Vo for abott 2 yeaxs after the relocation.

Based on the information available, you are required to:

Prepare a valuation and advise yow client on the anount of claims for compensation allowed
under the Land Acquisition Act 1960 (amended) that should be submitted to the Land
Administrator of Petaling District.
Suitable assumptions may be made to support your advice.
(25 marks)
 BPE 2303 / BPE 23003

Q6 Lot 56789 is an oil palm estate of90 hectares in size. It is cultivated with matured oil palm of
about 25 years of age and its physical tenain is flat and at road level. Lot 56789 is located at
the fringe of the Multimedia Super Conidor (MSC).

The registered owner of the estate has come to seek your advice regarding his estate upon
receiving news that his estate has been gazetted by the State Govemment for compulsory land
acquisition. In the course of the meeting the land owner provided you with the following
information:

A portion of Lot 56789 approximately 9.5 hectares as seen shaded in the above
diagram (Figure Q6). was gazetted under Section 4 of the Land Acquisition Act 1960
(amended) on the 15'n October 2002 and it was again gazetted under Section 8 of the
same Act on the 31't March 2003.
The purpose of the laad acquisition is for a new highway linking the MSC with Klang.

9.5 hectares
(a portion ofland
Lot 56789
to be
Mukim Dengkil
90 hectares

12.5

Figure Q6: A portion of land to be acquired.

From your investigation and research of the area you have found the following tr lsaction
data involving agricultural properties in the vicinity ofthe subject lot.

Lot No Title Category of Land Location Date of Sale Price Notes

land use Area transaction (RM)
(ha)
3022r Freehold Agriculture 25 Road 1.6.2002 8,027,500 Matured
frontage oil palm
25612 Freehold Agriculture 48 Road 10.8.2002 14,014,440 Matured
frontage oil palm
326sr Freehold Agriculture 67 Road 8.9.2002 19,8s8,800 Matured
frontage oil palm
54345 Freehold Agriculture 22 Road 6.5.2002 6,738,000 Matured
frontage oil palm
 BPE 2303 / BPE 23003

2s833 Freehold Agriculture 88 Highway 30.12.200r 25,213,760 old

frontase rubber
25767 Freehold Agriculture 98 Highway 10.12.2002 29,047,200 Matured
frontage oil palm
45913 Freehold Agriculture 55 Road 5.1.2003 19,019,000 Matured
frontase oil palm
254t1 Freehold Agriculture 38 Highway 6.12.2002 12,201,800 Matued
frontage oil palm
Other information gathered from your client are as follows:
. New fencing needs to be placed along the new boundaries approximately 2.3 l<rn in
length. Cost of fencing is approximately RM25 per meter mn.
r The estate drainage system needs to be realigned including the installation of a new
flood gate. Cost of realignment of drainage system is estimated at RM55,000
including the flood gate.
r The existing estate roads need to be realigned as well including the construction ofa
box culvert at certain point of the estate to link the severed part of the estate. The cost
of realigned of road is estimated at about RM75,000 and the box culvert about
RM200,000.
. 5 contract workers have to be terminated as a result of the acquisition and 5 units of
workers quarters will be left vacant. The cost of construction of the quarters is
RMl5,000 per unit.
. Due to the realignment of roads and drains, 100 palm trees have to be cut resulting in
a loss of income approximately RM9,000 per annum.
. As a result of the acquisition the estate has been severed into 2 parts with the
remaining part at the south-eastem portion of the estate becoming a triangular piece
with an area of 12.5 hectares.
r on the acquired portion there is a Hindu temple which sits on a site approximately 0.5
hectares. According to your client, the Hindu temple is newly reconstructed at the cost
of RM150,000. The temple site was leased to the temple management committee for a
period of 99 years about a year ago.

Based on the Land Acquisition Act 1960 (amended), the trarsaction data available and other
information gathered, you are required to:

Prepare a valuation and advise the registered owner on the amount of compensation that he
should claim from the Govemment. suitable assumptions may be made to support your
advice.
(25 marks)

EI\ID OFQUESTION PAPER

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