GEORGE TOWN: Ivory Properties Group Bhd has teamed up with Penang-based Aspen Vision Development Sdn Bhd (Aspen Group) to jointly develop a township with a gross development value (GDV) of RM8 billion, on 245 acres (99ha) of freehold land in Bandar Cassia, Batu Kawan in Penang.
Both companies have formed a special purpose vehicle (SPV) known as Aspen Vision Land Sdn Bhd (AVLSB) for the purpose of entering into joint ventures for the development of Aspen Vision City. Aspen Group will own a 51% stake in AVLSB, while Ivory will hold the remaining 49% stake.
AVLSB yesterday signed an agreement with the Penang Development Corp (PDC) to acquire the plot of greenfield land for RM484 million or RM45 per sq ft.
It also sealed a partnership with Ikano Pte Ltd to jointly develop a RM1 billion shopping centre anchored by an Ikea Store on 24 acres within the proposed development, which is located near the landing point of the Sultan Abdul Halim Mu’adzam Shah Bridge in Batu Kawan.
Aspen Vision City will also feature residential and commercial properties, medical facilities, a 20-acre central park, international schools, retail outlets and an integrated central transportation hub for Seberang Prai.
In a filing with Bursa Malaysia yesterday, Ivory said it envisions Batu Kawan and Penang island to be akin to the case of Tsim Sha Tsui and Hong Kong Island in years to come through the link of the Sultan Abdul Halim Mu’adzam Shah Bridge, making Batu Kawan the next new satellite city on the mainland.
The entire development is scheduled for completion in 10 years from its commencement date towards the end of next year.
“Focus will be placed on building commercial properties in the first phase to create a solid foundation for a thriving business hub before undertaking mixed development project under the second phase,” said Ivory.
Earlier, after the signing ceremony which was witnessed by Penang Chief Minister Lim Guan Eng, Aspen Group chief executive officer Datuk Murly Manokharan said while Ivory owns a 49% stake in AVLSB, it will not be an active participant in the project apart from being an investor.
“Ivory will pump in the funds according to the stages of the development, as and when is required,” he told The Edge Financial Daily.
Ikano managing director Christian Rojkjaer said a detailed study will be conducted to study the market and house size, and quality factors involving the population in Penang and the northern region.
Shares in Ivory closed up 5.93% to 62.5 sen yesterday, bringing a market capitalisation of RM274 million.
This article first appeared in The Edge Financial Daily, on September 4, 2014.
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