Perennial Real Estate, IJM Land to jointly develop Penang waterfront project
Perennial Real Estate Holdings Limited (PREH) announced on Tuesday (Apr 21) that it has entered into a joint venture to acquire a freehold waterfront site in Penang, Malaysia to be developed into a large-scale integrated mixed-use development.
The 50-50 joint venture between the group’s Singapore-incorporated subsidiary Perennial Penang Pte Ltd and IJM Land Berhad will turn the site into what it describes as “Penang’s first mega integrated waterfront icon” with “retail, entertainment, recreational, residential, business, hospitality and Meetings, Incentives, Conventions and Exhibitions components”.
When ready, the 1.4 million sq ft waterfront site in Gelugor town along Penang’s eastern coastline will be converted into a complex housing a shopping mall, thematic shops, residential towers, an office tower, two hotels with more than 750 rooms, as well as a convention centre, spanning across 4.1 million sq ft in total gross area.
In close proximity will be landmarks such as the first and second Penang Bridges, and Phase 1 of The Light Waterfront Penang, a residential development by IJM Land. The total development cost is estimated to be more than 3 billion ringgit (S$1.1 billion).
The waterfront integrated mixed-use development will be jointly managed by the two partners and is expected to complete in phases, starting from 2018.
PREH’s chief executive officer Mr Pua Seck Guan said the prime sizeable development offers “a unique opportunity to establish a one-stop retail-cum-lifestyle destination imbued with the life and spirit of Penang’s cultural heritage”.
He also expressed his confidence in turning it into “one of the finest waterfront integrated precincts in Penang that will appeal to both locals and tourists” considering both partners’ “complementary expertise and experience in developing and managing large-scale integrated commercial developments in China and Singapore”.
Mr Pua added: “The joint venture in Penang also marks the Group’s first foray into a new market which will augment our existing business in core markets of China and Singapore and diversify our investment portfolio to generate sustainable returns over the longer term.”
Chief executive officer and managing director of IJM Corporation Berhad Mr Soam Heng Choon believes the development will boost Penang’s tourism and economic standing.
“The development of the integrated waterfront city will transform the waterfront landscape of Penang and will further position the state at the forefront among investors and tourists,” he said.
Source: Channel NewsAsia
similar to clarke quay in singapore?
fuyoh ~
I think this is the first in penang with that kind of concept (large scale). Very nice indeed. At least it is different compare to the existing mall that penang has (queensbay, gurney, paragon, etc).
Just trying to stay “Alive” in the property sector that it has actually forced into
a joint venture.
OK, at least IJM now acknowledges that so far The Light project is a failure, and they cant do it all alone. Recognizing own weakness is actually a strength. IJM wants to turn it’s own weakness into strength, very commendable.
So now they partner Spore company, hopefully they give money support as well as customer source. If you look closer, this project is not that big. Only maybe 6-7 blocks of condos, 2 blocks of hotel, 1 office block, and then all those landed shop houses and 1 convention centre (instead of shopping mall, so it’s going to be something like Queensbay area). No big deal.
If you look at the illustration, the waterfront is spanning only 750meters, while Gurney has 2km waterfront. Just to give everyone an overall perspective.
JV is normal nowadays… for this particular case, it is better for ijm to get partner for managing/developing the commercial component… ijm does not have expertise in this field.. and perennial has experience in this area… so i think it is a good move
So there will be competition for MICE business between SPICE and this. Eehh…never mention how big the convention centre is? Decide later? Can maybe build a mini-durian convention centre like the one in Spore?
That’s the problem in Penang. You build convention centre, I also build, in the end, everyone dies. There is also one convention centre in Straits Quay, most of the time unused. Only used occasionally for property fair and wedding banquet. Pathetic. Penang is not growing that fast. STOP ALL THE WASTEFUL BUILDING!!
@LongJohnSilver
Next to joint the failure will be The Pearl Regency and The Vertiq.
@LongJohnSilver
Gurney waterfront has foul smell from the mud. Karpal Singh Drive is much more pleasant and happening.
@LongJohnSilver
there is a mall below convention center. As I mentioned before, the concept is diff if you compare to QB area especially on the thematic shop.
beside this 750m, there is still empty land next to it. But I heard this empty land is not part of the JV.
This guy must be ‘Talk Only’ fella on Vertiq thread. LOL!
Regardless failure or success of IJM, most important residents around Metro east and The Light see their values of the property appreciating. Improved amenities around also mean more convenience due to the accessibility. I agree with one writer who mention that having a bridge/flyover from Metro east to The Light phase 2 will increase the mobility and traffic to the commercial.
Starting from Queensbay to karpal Singh Drive known as Middle Bank will see major developments in the next 10 years, the hotspot for investment and growth. When it is good for the Penang people, it means is good for the state especially when there is foreign investment coming in.
Be your own judge, invest wisely, Penang will be the beacon of Malaysia.
@Lim
All will be built close to each other just like Pearl Regency, Vertiq, Platino,
Baywater ,Tesco and IJM’s offices. Some will have their view block and
crowded in an area call hotspot ? How hot will it be ?
So I should ready my cash and go to IJM office to make the booking now? For good unit, do you think still available?
So, the original “Sydney look” concept no more? Replaced by this one, just like that? I wonder will they change plan again after getting good respond from their phase 2 residential units………eventually all convert to residential projects, no more commercial. It’s really unfair to those who bought phase 1 due to their original concept.
@sokohaw
Majority of the components (hotel, convention center, offices, mall) from previous masterplan are still there. Just that they changed the concept from conventional mall to “open” mall which I think it is a good move. At least this concept will be the first in Penang. I doubt they will change to all residential because Perennial business is more towards commercial.
Agree. The original concept is so grand. Now is just condo and shoplots. sigh…
Who is this Perennial?
@ilovevertiq
you can refer to the photos above to find out what will be there, Basically hotel, offices, convention center and mall. A friend told that they want to do something like clarke quay in singapore. You can google it. Maybe can call IJM to confirm this.
Perennial is a company from singapore (listed in singapore) and specialize in developing and managing commercial. They have project in China and Singapore.
@man-u
I have been to Clark Quay, riverfront pubs mostly. I think the original concept is much better, like Sydney Harbour.
@ilovevertiq
Agree with u that original masterplan is better, but I think this one also not bad.
All are marketing talk, will see what is the demand, let time to prove it. Ultimately, without strong fundamental of business activity. All these are just in talk, LOL
@Ang
Yes, those living around the area giving a “blur” and marketing talk. All
cakap “burong”.
@Lim
“Regardless failure or success of IJM, most important residents around Metro east and The Light see their values of the property appreciating.”…… If failure, then how to see the values appreciate?
“Starting from Queensbay to karpal Singh Drive known as Middle Bank will see major developments in the next 10 years”….. What major development? The Sydney Opera House lookalike that got shrunk down to shop houses? Oh yes, there’s plan to build another big power plant across the highway from the existing one. Yeah, that’s major.
I hope the state still remembers, the fundamental to growth and prosperity is human capital. No matter what bloody building you build, if there is no highly skilled human resources and high paying jobs, no one will be able to afford them. As of now, property prices are already running way ahead of salaries. Solve the salary problem first.
The reason for the change of concept is clear. If they build the mega convention centre, it has to be all at one go. Whereas if they build shop houses, they can go phase-1, and then phase-2 years later, and phase 3 and so on. IJM’s confidense is clearly shaken by the lack of success in The Light project. So now they go baby steps.
Initially thought can see the Sydney Opera House lookalike from my window, now all gone..
IJM is bad for penang. IJM is the one that pioneered “block purchase”, “super early bird insider purchase” etc in penang. IJM was the one who started all these speculative frenzy by having it’s genuine customers queue overnight in front of their sales office to create a buzz for speculation. But after they get inside the sales office, only lousy and expensive units are left for them. This is how IJM treats genuine buyers.
IJM was the one who let the super rich from BSG to block purchase their properties at heavy discount to create false impression of demand, so that BSG who holds a lot of land in Penang can further jack up prices.
My friends, and those who are stuck with expensive properties today, those who are paying hefty installments every month with your hard earned money, you should know by now where have all your “future money” gone… into the pockets of the ultra rich in Penang, and they have become even richer today!!! So, keep slogging!
@bulldog
I beg to differ. Even from initial stage, IJM is looking for a JV partner to develop commercial component. The reason is that IJM does not have expertise in this area. Perennial is a suitable JV partner as commercial is their forte. If IJM JV with company that know nothing about commercial then we shud be worry.
@bulldog… According to IJM, convention center will be built first, then follow by thematic shop. Take note that the retail mall will be built together with convention center as both are actually same building. Convtion center at the top floor, mall lower floor.
Are those thematic shoplots for sale? Who is going to manage the shops? Later become D’piazza..
@sg
i think they will not sell the thematic shop. if u refer to the report from perennail below
“The Joint Venture partners intend to fund the development of the project through a combination of internal funds, bank loans and sales proceeds from the sale of the residential and office components to optimise cash flow”
they will only sell residential and offices.
perennial and ijm will jointly manage the development after completion
This coming Sunday 9.30am IJM will host Family Day Carnival for resident of The Light Collection . Many event be arranged , kid coloring & fashion, treasure hunt , BMW test drive , presentation from Chef Nazlina , boat ride , KFC meal , crown and etc ……
aiyo, how come need to do this kind of joker stuff? cannot sell ah?
Only for light residence?
@sg
Worse if become Penang Times Square.
aiyo fren… the event for owner lah… they already bought… cannot sell what