KUALA LUMPUR (Nov 11): Dijaya Corporation Bhd and Ivory Properties Group Bhd have signed a joint venture (JV) agreement to develop mixed residential and commercial properties in Penang with a gross development value (GDV) of RM10 billion.

In a joint statement on Friday, the two companies said the development will be completed over the next eight years and would comprise of residential, shopping mall, hotel, office suites, office towers, retail spaces and an open mall with a boulevard. Construction of the first phase is scheduled to begin next year, they said.

The signing confirmed an earlier report on Friday by The Edge Financial Daily after Dijaya and Ivory Properties had both asked for a one-day suspension in trading for their shares pending a material announcement.

Dijaya and Ivory said the land was located within Bayan Mutiara, a new development hub located in the eastern part of the Tun Dr Lim Chong Eu Expressway (formerly known as Bayan Lepas Expressway) and in the vicinity of Sungai Nibong. It spans 102.65 acres, of which 76.56 acres are existing land and the remaining 35 acres are to be reclaimed, they said.

Dijaya group chief executive officer Tan Sri Danny Tan said the signing was another milestone for Dijaya’s investment outside of Klang Valley in addition to the Southern region. “Our investment in Penang is an affirmation of the company’s confidence in the growth potential of this region and, with Ivory as our business partner, we hope to further contribute to the economic growth in Penang,” he said.

Meanwhile, Ivory chief executive officer and chairman Datuk Low Eng Hock said Dijaya was famous for its series of lifestyle homes within a resort environment as seen in the award-winning development Tropicana Golf & Country Resort. “With the property company beefing up its financial muscles and market presence, this potential joint venture will add vibrancy and spur the economic growth of Penang,” he said.

Ivory had received a letter of acceptance from the Penang Development Corporation (PDC) on July 25, to purchase and develop 102.56 acres of mixed development land in Bayan Mutiara, Penang for a purchase price of RM1.07 billion.

Under the JV, the two public listed companies have formed Tropicana Ivory Sdn Bhd, with Ivory Properties holding a 51% stake and Dijaya holding the remaining 49%.

SOURCE: The Edge Property