GOB

Batu Kawan Lifted To New High By IKEA

Finally... Penangites' dream comes true. 

After years of "rumour", IKEA is edging closer to open its first store outside Klang Valley in Batu Kawan.

Just in this morning, Penang CM Mr LGE has announced in a press conference that the state government and Penang Development Corporation (PDC) will sell a piece of 245-acre land in Batu Kawan to a joint venture company Aspen Vision Land Sdn Bhd-Ikano Pte Ltd for RM483.9mil.

Ikano owns & operates IKEA franchises in Malaysia, Singapore & Thailand, while Aspen Vision Land is a 51% subsidiary of Aspen Group & 49% associate company of Ivory Properties Group. Thus, Ivory has gained an indirect access to Batu Kawan development.

Aspen Group seems to be a new property developer with a few upcoming condo projects in Penang.

       Upcoming condo in Penang by Aspen Group

The 245-acre development planned in Batu Kawan will include:

• 30 acres for IKEA store and phase 1 shopping mall
• 45 acres for phase 2 shopping mall
• 170 acres for mixed development

If not mistaken, IKEA & Ikano Power Center in Mutiara Damansara measure about 13 acres.

The whole development is expected to be completed in 10 years but IKEA store is to be completed in 5 years or sooner.

       IKEA Batu Kawan - at southern part?

Of course this is the best news for Batu Kawan so far, compared to other earlier investment like Honda, Premium Outlet, KDU & University of Hull.

While property may start to cool down in the country, I don't think this is the case for Seberang Perai, especially SPT & SPS. The mixed development by Aspen-Ikano will surely sell like hot cakes.

Direct beneficiaries of increased property demand in Batu Kawan are GOB, Ivory, Malton & Paramount, who already have lands in this area. Other surrounding listed property developers include Tambun Indah, Ecoworld, Mahsing & IJM Land.

It will not be a surprise when the news of other developers acquiring land within or nearby Batu Kawan start to flow in later.

Now people may start to imagine Batu Kawan to be like Damansara.

Wednesday, 16 October 2013

Premium Outlet Ticked. What's Next?

Agreement related to Batu Kawan development signed again!

This time it is the Penang Premium Retail Outlet.

On 12th October 2013, Penang Development Corp (PDC) has signed a purchase and development agreement with Sarawak-based PE Land Sdn Bhd for the construction of premium retail outlet in Bandar Cassia, Batu Kawan.

The outlet will cost about RM200 million and was won by PE Land in an open tender. This is PE Land's first development in peninsular Malaysia. It operates Sarawak's largest shopping mall tHE Spring in Kuching. CB Richard Ellis (M) Sdn Bhd will act as the principal consultant for the project.

This is part of the development in a 16-ha land (40 acres) which will include a 300-room international-class hotel, cafes, F&B outlets, landscaped garden and residential units, which forms part of the mixed development in Bandar Cassia called Penang Designer Village with a GDV of RM1 billion.

The premium outlet is expected to be completed within 3 years.

Next announcement that may follow perhaps is about the proposal of International Theme Park and golf course, in which the deadline for proposal submission is on 31 Oct 2013.

With so many good news flowing in Batu Kawan recently, one property developer will be a definite instant beneficiary - Global Oriental, who is the only developer with on-going residential projects there besides PDC. However, I think other developers will make their move once the 2nd bridge is completed.

       GOB upcoming launch: Camellia - 3 storey courtyard villas

       GOB's Crescentia Park at Bandar Cassia

After Bayan Baru and Seberang Jaya, Bandar Cassia will be PDC's third satellite township development. The former two are very successful. How about Bandar Cassia?