GEORGE TOWN: Two foreign property development companies – one based in Singapore and another in Hong Kong – and Eastern & Oriental Bhd (E&O) are among seven candidates shortlisted to bid for the new Penang Turf Club (PTC) development project.

Most of the four remaining candidates are headquartered in Kuala Lumpur.

StarBiz learnt that the Singapore-based group is one of Asia’s largest real estate groups which has public-listed companies in Hong Kong and total assets worth over US$40bil.

Those shortlisted for the tender have the option of buying the 23.09ha site for RM200 per sq ft or developing the site jointly with PTC.

It is learnt that those who submitted for the second round of bidding, which closed on Sept 30, had to pay a tender deposit of RM500,000.

When contacted, E&O executive director Eric Chan Kok Leong confirmed the group had submitted a bid in relation to the PTC land.

“Details are restricted by the confidentiality requirements of the competitive bidding process,” he said.

According to sources, one of the proposals submitted by a Kuala Lumpur-based developer was for the development of more than 1,000 units of landed residential properties and condominiums over a eight- to nine-year period.

The gross development value of the project was estimated at around RM1.5bil, based on the present market value of the PTC land of about RM500mil, the sources said.

Because the PTC land is located close to the Jesselton residential area, the succesful bidder would be able to build six landed residential properties or 15 condominium units per acre, according to the present plot ratio guidelines set by the Penang Municipal Council.

Over 20 property development companies, which included Penang-based developers, submitted their company profiles for the pre-qualifying round, which closed on June 16.

After the 2008 general election, the state government rejected a proposal from Abad Naluri Sdn Bhd, an associate company of Equine Capital Bhd, to develop the RM25bil Penang Global City Centre on the PTC site, due to its failure to submit plans as required by the state.

SOURCE: The Star