Eastern & Oriental Bhd (E&O) is targeting to commence reclamation work next year for 740 acres of land in Tanjong Tokong in the north-east coast of Penang for its RM12bil Seri Tanjung Pinang phase two (STP2) development.
Executive director Eric Chan said the group's subsidiary, Tanjung Pinang Development Sdn Bhd, had received the approval in principle for the masterplan of STP2 from the Jabatan Perancangan Bandar dan Desa Pulau Pinang via a letter dated April 11.
“It should take two years from the start of the land reclamation before the first project launch can be embarked upon.
“Phase two will be a mixed integrated development comprising two islands of approximately 740 acres in size. At three times the size of phase one, phase two is expected to generate RM12bil in gross development value,” Chan told StarBiz.
As in phase one, he said residential property would be the key component in STP2, besides commercial and public spaces.
“In totality, Seri Tanjung Pinang phases one and two will embrace a range of residential, commercial, recreational and leisure properties within an integrated masterplanned development.
“We expect this iconic development to ultimately redefine Penang island on the world map as a vibrant new seafront resort destination to reside, holiday, work and invest,” he added.
Chan said STP2 would take the E&O brand to the next level and support the group's aspiration to extend the brand regionally and globally.
“The development will also be a symbol of pride and progress, gaining worldwide publicity and prestige; and attract capital inflows and investment, employment and business opportunities, especially for Penang's tourism. It will complement other major projects to turn the state into a world class city and an international property destination,” he added.
In 1992, TPD was granted the exclusive right to reclaim and develop approximately 980 acres of land in Tanjong Tokong.
It has to date reclaimed and is continuing to develop phase one of the project comprising about 240 acres of land.
The total GDV for phase one of Seri Tanjung Pinang is approximately RM4bil.
The E&O group, through TPD, had sought the state's approval to reclaim the balance concession area of about 740 acres.
In a filing with Bursa Malaysia on Tuesday, E&O said while the in-principle approval was a vital step towards being able to reclaim the balance concession area, there were other steps still to be undertaken and approvals to be obtained before reclamation works could actually commence.
It said while it was too early to outline the detailed effects of the approval in respect of the masterplan or its implementation timetable, “the board of directors of E&O is of the view that in the longer term, the group will derive substantial benefits with a successful implementation of the in-principle approval.”
On the progress of Seri Tanjung Pinang phase one, Chan said more than 600 landed residential units and 217 serviced suites had already been completed and sold to date. There will also be seven condominium towers.
The landed properties include the Ariza range of courtyard and seafronting terraced houses, Avalon and Acacia semi-detached homes, and the Martinique, Skye and Abrezza villas by-the-sea.
Last February, the first tower of the 21-acre Quayside Seafront Resort Condominiums was launched and another two towers were launched in the last 12 months. The overall take-up of the launched condominiums is about 75%.
Meanwhile, the commercial area includes the Straits Quay festive seafront mall which has 270,000 sq ft of net lettable area; a 7-acre parcel of TESCO hypermarket development and a few other smaller plots.
Chan said since its soft opening last November, the Straits Quay mall had recorded a tenancy occupancy of close to 60%, comprising a myriad of marina-fronting food and beverage outlets, fashion, and lifestyle stores. - By Angie Ng (The Star)
4 comments
IKEA !
Would be great to see IKEA and a good DIY/garden center in STP!!!
2-3 years ago, property bubble in US, UK and Ireland burst.
The property bubble in Queensland also burst recently. Compared to 2008, it dropped 21%.
IMF reported in World Economic Outlook few days ago, the property/credit bubble in China and Hong Kong may burst in near term due to projected 5% inflation rate.
This will cut down overseas investors.
I agree with Tan ..Penang property is highly overpriced and out of the reach of a lot of potential buyers.
Many people have speculated or a have connections within the industry , buy off plan , wait and get a return for your money after the O.C. has been granted.
This can only last so long ..I look at what happened in the recent past in Western Canada , and is happening right now in USA and UK..a big readjustment to realistic property price levels , which have a direct correlation to incomes as opposed to equity .
While times are good ..no one wants to believe that the bubble will burst.