Eco World Development Group Bhd is said to be eyeing a 300-acre leasehold site in Batu Kawan for a RM6bil mixed development project to be launched next year.

Sources told StarBiz that the group could fork out up to RM700mil for the property, estimated at over RM50 per sq ft (psf) to Batu Kawan Development Sdn Bhd (formerly Abad Naluri).

It is learnt that the deal, which has been in negotiations since last year, is likely to be inked soon.

That same piece of land was of interest to Malton Bhd a few years ago. It was supposed to develop it on a joint-venture basis. In 2012, Batu Kawan Development inked a deal with Silver Setup Sdn Bhd (SSSB), Malton’s indirect subsidiary, to develop a RM3.8bil township on that 300 acres.

The agreement allowed SSSB to fund the project and hold a 82% stake of the GDV, while Batu Kawan Holdings was entitled to 18% of the GDV, subject to no less than RM300mil.

However, there has been no update on the development which was supposed to start in 2014.

According to Malton’s 2015 annual report, no significant property development work has been undertaken by SSSB as at June 30 last year.

As for Eco World forking out more than RM50 psf for it, local property players in Seberang Prai consider it “fair”, although it is more than the RM45 psf big property deals done in Batu Kawan two years ago.

If the acquisition is completed, the development will be a major project for Eco World in Penang next year. It is likely to be a mixed development scheme comprising largely landed properties (70%) and commercial units (30%).

The group is planning for sizeable landed properties with competitive pricing.

It is learnt that Eco World will also be re-submitting its tender to state-owned Penang Development Corp (PDC) for the 450-acre leasehold land in Batu Kawan for RM790.93mil.

Last week, Eco World announced that it was rescinding the letter of award for the proposed RM10bil Eco Marina mixed development project on the 450-acre parcel as the proposed scheme requires a larger acreage for the 18-hole golf course, thus adversely impacting the viability of Eco Marina.

In the new tender to be called by PDC, there will be fresh conditions for bidders to acquire more land in Batu Kawan from the state government so that they could build the 18-hole golf course.

Eco World is well positioned to win the tender as it has already in hand a completed feasibility report to develop the site, which the group had earlier prepared for the previous tender.

In Seberang Prai, Eco World is involved in the development of EcoMeadows (GDV RM918mil), a 60-acre gated-and-guarded strata development in Simpang Ampat.

Eco World expects its projects in Penang to generate about RM300mil this financial year ending Oct 31, 2016, compared to RM200mil the previous year.

Previously, Eco World general manager Khoo Teck Chong had said that the targeted revenue for the 2016 financial year is RM4bil, compared to RM3bil in 2015.

The contribution from Penang would come from Eco Terraces in Paya Terubong, which is 40% sold, the remaining units of Eco Meadows first phase, and Eco Bloom, which are scheduled to be launched in August.

Eco Terraces and Eco Bloom are priced respectively at over RM850,000 and below RM400,000.

Source: TheStar.com.my

Rena Park, an on-going development by Absm Land Sdn. Bhd. at Balik Pulau, Penang. Located next to Fragonard Garden by VST Group, about 10 minutes from Balik Pulau town center.

This development comprises 35 units of 3-storey terrace houses, with 2 spacious design to choose from. All units come with a large family area and roof terrace at the 2nd floor and 2 master bedrooms.

Property Project: Rena Park
Location : Balik Pulau, Penang
Property Type : 3-storey terrace
Total Units: 35
Land Tenure : Freehold
Indicative Price : RM770,000 onward
Developer : ABSM Land Sdn. Bhd.
Sales Contact: 017-986 0717 (Selin Ong)

Location Map:

More options for those who are interested in affordable housing at Balik Pulau. Here is the proposal by Ion Development Sdn. Bhd., comprising a 10-storey low-rise condominium with 6 units of shoplots located at ground floor.

This development is located immediately opposite South West District Police Headquarters, it between Heliconia Garden and The Loft 23. The residential component will offer 226 affordable units.

This project is still pending for approval. More details to be available upon project launch.

READ MORE ABOUT AFFORDABLE HOUSING:

• Eligibility and the requirement of buying affordable housing
• Full list of affordable housing in Penang

Property Project: (Pending)
Location : Balik Pulau, Penang
Property Type : Affordable housing
Total Units: 226
Land Tenure : Freehold
Indicative Price : RM400,000 and below
Developer : Ion Development Sdn. Bhd.

Location Map:

The feasibility study for the controversial RM6.3 billion undersea tunnel is proceeding and expected to be done in six months’ time, said Datuk Zarul Ahmad Mohd Zulkifli when correcting his statement to the contrary.

The Consortium Zenith BUCG chairman today claimed he mistakenly told the media in Kuala Lumpur yesterday that the study was put on hold.

“It’s the puasa month, so I might have mistakenly said that but we are continuing with the study as we are already 83 per cent done,” he said today in a press conference together with Penang Chief Minister Lim Guan Eng.

Lim earlier also clarified that the undersea tunnel and three paired roads project have not been cancelled or postponed.

“There are still 17 per cent left to completion of the study so the contractor will continue with it,” he said.

Yesterday, in a press conference announcing legal proceedings against Parti Cinta Malaysia’s Datuk Huan Cheng Guan over allegedly defamatory statements about Consortium Zenith, Zarul reportedly said the state government had asked them to stop the feasibility study for the undersea tunnel.

Lim today insisted the study was never halted, adding that there were also additional surveys needed.

“After the feasibility study, we still need to get the DEIA and if the DEIA is not approved, the project will not go on too and all costs will be born by the contractor,” Lim said.

One of the conditions for the award of the project to Consortium Zenith was that it must obtain the necessary approvals for the undersea tunnel and three paired roads, failing which it must bear the full costs of the feasibility studies.

He stressed that the undersea tunnel is a future plan to provide an extra link for when the first and second bridges become saturated.

“It will not be built now, construction for the tunnel might only start in 2022 and expected to complete by 2027,” Lim said.

As for the three paired roads, construction works are only expected to start next year and completed by 2022.

Zarul said their priority now is to start work on the three paired roads pending the completion of the feasibility study and obtaining approval for its detailed environmental impact assessment (DEIA) for the undersea tunnel.

Under the massive project, the 7.2km undersea tunnel will link Gurney Drive to Bagan Ajam in north Seberang Perai.

The three paired roads are from Tanjung Bungah to Teluk Bahang, Tun Dr Lim Chong Eu Expressway to Air Itam and Gurney Drive to the same expressway.

Source: TheMalayMailOnline.com

RELATED NEWS: Penang undersea tunnel project on hold

The Penang government has put a stop to the feasibility study on the proposed 7.2km undersea tunnel linking Penang to Butterworth.

Consortium Zenith BUCG Sdn Bhd’s (CZBUCG) chairman Datuk Zarul Ahmad Mohd Zulkifli said the company had stopped its feasibility study for the undersea tunnel following a request by the state government a month ago.

“They did not provide any explanation on stopping the feasibility study for the undersea tunnel, but want us to focus on the highway projects for now,” Zarul told a press conference yesterday.

He said the consortium had spent some RM100mil on the feasibility study, which could be claimed from the Penang government.

Asked if the project was shelved in preference to the construction of a third bridge for the island, Zarul was non-committal.

“We will cross the bridge when we get to it,” he said.

Although there was no compensation clause in the contract with the state if the undersea tunnel project was cancelled, he said the company could still make claims for work done.

The undersea tunnel and three paired road project was awarded to the company in 2013 and is estimated to cost some RM3.2bil, with financing coming from a land swap deal involving 45.5ha to be reclaimed.

On the three paired road project, Zarul said CZBUCG planned to start work this September after getting the nod from the state.

He claimed that the feasibility and detailed design fees for the three paired roads was RM220mil, of which the state had paid about RM135mil through a 1.485ha land swap deal.

On the financing for the three road projects, Zarul said CZBUCG had approached institutions for it.

“The funding for the project would be a mix of investors and bank borrowings. We have our own formula such as in the form of a property fund, where they will pay us first and then get the land later,” he said.

Zarul said the consortium will hold a roadshow and town-hall meetings in Penang in early August to explain the project to Penangites.

Source: TheStar.com.my

RELATED NEWS: Firm claims mistakenly said Penang tunnel study on hold