IKEA anchors RM8b Penang integrated shopping haven to be built in 2015
Developer Aspen Vision Land, IKEA franchisee Ikano Pte Ltd and the Penang Development Corporation (PDC) have entered an agreement for a RM8 billion integrated development in Batu Kawan that will be built around the Swedish furniture icon.
The massive project will be headlined by a regional integrated shopping haven anchored by IKEA, and include a mixed development of residences, offices, medical facilities, a 20-acre park, an international school, standalone retail outlets and an integrated central transportation hub for Seberang Perai.
With the signing of the agreement this morning, Aspen and Ikano can immediately start preliminary measures such as conducting impact studies and market surveys before commencement of the project.
“We are opening up a full-sized IKEA store here so we will need an elaborate study to be completed first before works can begin,” Ikano managing director Christian Rojkjaer said at a press conference after the signing ceremony at the Royale Bintang Hotel here.
The first phase of the project will consist of the integrated shopping mall anchored by IKEA and is expected to start by the end of next year, with completion scheduled for 2018.
The second phase will include other components such as mixed development, high rise commercial buildings, school, office complex, healthcare facilities and a hotel. The entire project will take up to 10 years to complete.
The project is one of several planned in Batu Kawan, including a RM1 billion project consisting of an upmarket outlet shopping mall, a 300-room international-class hotel and a branch campus of Britain’s University of Hull.
The rising demand for land and projects based in Batu Kawan is due to the opening of the Sultan Abdul Halim Muadzam Shah bridge, which connects the small township to Batu Maung on the island.
Aspen and Ikano jointly bought 245 acres of land from PDC for RM483.95 million for the project.
The IKEA store and the first phase of the shopping mall will take up 30 acres while another 45 acres will be set aside for phase two of the shopping mall; the remaining 170 acres will be for mixed development.
Penang Chief Minister Lim Guan Eng, who witnessed the signing, said the whole development is in line with the state’s efforts to attract catalyst projects for Batu Kawan and the state.
The state, through PDC, also plans to build 11,800 units of public and affordable housing in the area.
Source: The Malay Mail Online
2018, still long way to go but this is really going to transform batu kawan. Is Eco Meadows close to ikea?
Yes, Eco Meadows is close to Ikea, but it is not integrated into the Ikea development. The cost of building a 3 storey terrace is about RM300k + RM50k for land (1400sf). RM450k would be a fair price for Eco Meadows. Anything more than that, might as well buy Ikea residence.
I’m planning to buy for own stay and if Eco Meadows is around 450k then it will be within my budget. I’m really looking forward for the launch.
450k u cant even get those newly built 3 storey within simpang ampat or bukit tambun area
@sugarbabe
450k u cant even get those newly built 3 storey within simpang ampat or bukit tambun area
At least 600k
450k will be sapu 100% cleanly within 2 minutes of launching.
450k no need to launch already finished.
Gated + 3ST + GST + Batu Kawan theme + ECOWORLD = >RM700k
I though batu kawan suppose to be affordable?
@yeong
20000 lmc and affordable units to be built there
So PDC’s bungalow project Dedaun can buy? Cause the bungalow is really close the prospect IKEA land and I think the price is still reasonably cheap (for a bungalow) If I need to pay RM600K for a terrace, might as well pay RM800K++ for a bungalow?
@Noob
buy now b4 it hits 1mil.. this place is the next Iskandar..
@dd
Thanks for the advice. May consider commercial properties at this coming Aspen Vision City as well
Lai! Lai! Sapu sapu! Cheap! Cheap!
@Ah Chai
Ikea you also want to sapu… hahaha..
@Ah Chai
What are you so late this time ?
Busy queueing again ?
Can sapu. London’s Gherkhin building oso got Malaysian want to sapu, why ikea cannot sapu?
Buying house not like buying fish.
Construction must be start before end of the year, if not…
Construction must start before end of the year, if not, I will never buy Ikea furniture anymore, ever!
LMC and affordable units also available in island. why batu kawan then?
IKEA need LMC for their workers but not need you buy their furniture….
Construction still no news yet?
heard on hold….not sure how true it is…anyone got news on this?
@mahsing
from where u get the news on hold of IKEA?
They plan to open in cheras. So i guess penang ikea on hold
Haha
bro, joke of the day la… hahaha
Ikea Cheras is underconstruction. Almost complete now.
eco meadows selling at least 800k lo.. :O
How much for the Ikea residential? any indication price?
IKEA is part of Aspen Vision City. A company names Aspen Vision City Sdn. Bhd. is formed between Aspen Group and Ikano Pte Ltd (the parent company of IKEA) for the development of Aspen Vision City.
The have introduced their shop office development next to IKEA. Their residential not launched yet. You can register at their website at aspenvisioncitycom.
3wtheedgepropertycom/my/content/aspen-ocbc-bank-sign-rm196-mil-loan-deal-kick-phase-1-aspen-vision-city
Above link mention IKEA will complete by 2018 same time as the shop lots
IKEA is underconstruction or what?
any update:?
no update, answered by IKEA.
IKEA is busy with IKEA Cheras right now. After IKEA cheras, next hit would be IKEA Batu Kawan
Any news on this development? has been quiet for a while. Please share more.
All relevant developement docs have been submitted, pending a few minor modifications Constructions are estimated to take 12 months, and due to start latest Jun 2016. Should have no problem opening in 2018 as scheduled.
hi Loosegirl, any update? when Ikea going to start?
IKEA JB faster than Batu Kawan
There’s only one Ikea in Bangkok with the next one under construction. And they are going build 3 in Malaysia??? Look at the company that’s doing the development. I don’t know how much they need to build a new Ikea, but it looks like they are not interested in selling furniture. Plus there isn’t a big enough market here in Penang unless in their proposal and feasibility sent to their HQ, they had indicated it was for the entire northern Malaysian market and including southern Thailand ( Hatyai, etc). The development profit should far surpass Ikea’s cost to build supply and maintain this northern store.
@malignant
Singapore has got 2 Ikeas with 5.5 million population where HK got 3 Ikeas with 7.5million population…So you are right..Penang only has 1.6 million population so pretty tough to sustain in long run especially the spending power is lower than Spore & HK
But not to forget we have neighbours from Kedah and Perak that can also contribute some..So, I believe developer has worked out the probability of feasibility…
I also hope Penang prosper and has our own Ikea..
More are window shopping then.
I agree too that Penang is a small market, even after you add up whole northern Malaysia & southern Thai. But take note that Ikea’s business model is very nimble. The can either build a “hyper-ikea”, “super-ikea”, or a “mini-ikea” to cater to different business volume, because their product supply is ever ready regardless of the size of it’s local store. And with Ikano mall in the formula, that makes it even easier to stay profitable.
However, for those who think that home values in Batu Kawan will be on par with those on island, you better think carefully. It is not suppose to be. It will be our state’s big failure if that happens, as the purpose of batu Kawan is to provide modern, convenient, and affordable homes for the mass.
@rock&roll
Are you really sure there were people who thought the properties prices in BK would be on par with island? I doubt people would really think so because even HK island are Kowloon have been so modenized and urbanized, Kowloon is still gap to catch up HK island,not even mention N.T area ( Similar to Simpang Ampat,BK,Sungai Bakap & Nibong Tebal)
So I guess there would not be such naive people la,dude…mature town like BW & BM are still much lagging behind,not even mention new-to-be-developing town la…
The whole northern region of Penang+Kedah+Perak+Perlis adds up to about 6 million population, and being the only branch in this catchment area I expect it to hold up well.
However Johor Ikea (commencing construction soon) seems challenging, considering there are already 2 Ikeas in KL, and another 2 in Spore.
So unless they price it competitively to attract Singaporeans, it might be a tough one considering Johor’s (only) 3.5 mil population.