The turf club is the single largest prime land plot owner in George Town.

Mah Sing Group Bhd (8583) group chief executive Tan Sri Leong Hoy Kum confirmed that the company has indicated its interest for the Penang Turf Club land.

"We are always on the lookout for good development land, especially in the hotspots of Klang Valley, Penang island and Johor Baru where we've established a strong branding," he said via e-mail.

Other companies invited for the bid are believed to be Berjaya Land Bhd, IJM Land Bhd, IGB Corp Bhd and Eastern & Oriental Bhd.
There was speculation that SP Setia Bhd had also put in a bid but sources said the company was not involved in the submission.

Sources familiar with the plan said the companies were invited by Datuk Seri Teh Choon Beng, a horse trainer and chairman of the turf club, to make the submissions.

Teh could not be reached for comment.

Business Times reported recently that tenders for the land sale were called two months ago and closed on September 30.

Over 20 companies submitted their proposals for the pre-qualifying round, which closed on June 16.

"The validity of the submission is one year, which means Teh can award the land deal anytime during this period," a source said.

The reserve price for the land is RM200 per sq ft or around RM500 million.

The source said the land, located behind the horse racing track, will include a residential development, comprising high-rise and landed properties.

"There will be some commercial elements but very minimal," the source said.

The expected gross development value from the proposed project is around RM1.5 billion.

The club, set up in 1864, is the oldest horse racing club in Peninsular Malaysia. It owns some 104ha of land in the vicinity.

"For now, only 23.1ha have been offered for development. There may be more parcels later but it will depend on many factors," the source said.

SOURCE: Business Times