THE Penang state government is working on expanding the development of Batu Kawan, so that it can tap into the new infrastructure of South Seberang Prai.
According to investPenang director Datuk Lee Kah Choon, there were 6,000 acres of land available for development in Batu Kawan with the second bridge and new roads in the area servicing the needs of new development projects there.
Lee said the state government had earmarked a 1,500-acre site south of the second Penang Bridge for industrial development.
“North of the industrial site, another 2,000 acres is set for mixed-development projects, and residential and eco-tourism developments will take up two adjoining 1,000-acre sites.
“About 60% of the site earmarked for industrial estate has been taken up by local and foreign companies. The Aspen Vision City (AVC), which includes the Ikea store project, the Penang International Technology Park (PITP) and the RM1bil Penang Designer Village, will be located in the mixed-development site.
“Meanwhile, a golf course and a theme park are being planned for the eco-tourism site,” he revealed, adding that some 12,000 affordable high-rise units would be developed on a 200-acre site for the residential component.
With all this, Sebarang Prai is expected to become the choice investment destination for mega-scale commercial projects in the northern region.
As it is, the mainland has for the past one year, attracted investments from Aspen Group Holdings Sdn Bhd, PE Land Sdn Bhd’s and Temasek.
All set: investPenang director Datuk Lee Kah Choon showing the location of the industrial sites in Batu Kawan, Penang.
The Aspen Group is investing RM8bil into the AVC mixed-development scheme, while PE Land is planning its RM1bil Penang Designer Village.
The AVC, located on a 99.1ha site, comprises hotels, a mini-banking district, residential properties, healthcare facilities, and international schools, while the Penang Designer Village will accommodate a RM200mil premier shopping outlet, a 300-room international hotel, and F&B outlets on a 16.2ha site.
Last year, Temasek signed an agreement with the Penang Development Corporation to develop the Penang International Technology Park (PITP) in Batu Kawan. More recently, the Belleview Group announced plans for a RM2.5bil mixed-development project, which will include the largest shopping mall in the northern region.
Certainly, the new second bridge connecting Batu Kawan in South Seberang Prai to Batu Maung on the island has helped channel interest from investors to Seberang Prai. In addition, a steady hike in commercial property prices since 2011 has captured the attention of investors.
Henry Butcher Seberang Prai senior manager Fook Tone Huat said the sub-sale price of commercial property had increased between 50% and 100% since 2011, depending on the location.
All upside: Aspen CEO Murly says the value of the AVC project will be enhanced by the Ikea shopping mall that is being planned next to it.
“The three-storey shop offices in Bandar Sunway in Seberang Jaya has increased to RM600psf from RM300psf in 2011. Similar properties in Bandar Perda are now priced at RM330psf compared to RM200 in 2011, while in Jalan Raja Uda, the price is RM380psf compared to RM260 four years ago. In Bukit Mertajam, the three-storey shop offices are now priced at RM300psf compared to RM200 in 2011.
“The price of new commercial properties in good locations of Seberang Prai are around RM3,800psf compared to the subsale price of about RM300 to RM380psf,” Fook said.
According to Fook, about 80% of shop offices in Seberang Prai are occupied, leaving the overhang figure insignificant. He said prices of shop offices might increase by about 5% this year due to the GST. This could cause a slight drop in commercial property transaction volume in Seberang Prai.
The transaction for commercial properties in Seberang Prai in 2014 is projected to have been between 1,100 and 1,200 units at a value of RM560mil, according to Fook. Up to the third quarter of 2014, there were 923 units transacted at RM426mil.
Strong demand for three-storey shop offices is reflected by good bookings seen at the Verve project by Aspen.
“Since February 2015, the Verve project, comprising 441 units, is already 75% booked. The units are priced between RM380psf to RM520psf,” Fook said.
Aspen chief executive officer Datuk M. Murly says the Verve, on a 35-acre freehold land, is the largest gated and guarded commercial precinct developed in Penang.
On AVC, Murly says the value of the project will be enhanced by the Ikea shopping mall that is being planned next to it. The first phase of AVC is scheduled for completion in 2018, and the whole project in 2025.
“Our strategy for AVC is to build the commercial components first to create a demand for the residential properties that will be attractively priced. There will be workers who would want to stay close to where they work. The objective is to develop Batu Kawan in such a manner that it mirrors the vibrancy of the island,” Murly said.
On its RM2.5bil integrated development project, Belleview Group managing director Datuk Sonny Ho says the scheme would be located on a 8ha site.
“The shopping mall, the largest in the north, will have a 1.2mil sq ft of built-up area. There will also be a four-star hotel, an Olympic-sized skating rink, a 20-screen cineplex and a high-rise residential lifestyle condominium component with 978 units,” he added. - The Star
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