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Fajarbaru Builder Group Bhd has announced its entry into a significant joint development project with Penang Development Corporation (PDC) in Bandar Cassia, Batu Kawan. The development will include a medical city, Medi-City, and a mixed-use hub. Fajarbaru has agreed to pay RM111.45 million to PDC for the purchase of 51.17 acres of land for the first phase of the Medi-City project.

The land purchase is part of a larger acquisition that covers a total of 235.8 acres. Fajarbaru will buy the first parcel in 2025 and has been granted the right to purchase an additional 184.63 acres (Parcel 2) within 12 months of finalizing the master purchase and development agreement (PDA). The terms and conditions of the PDA are still being negotiated, and further announcements are expected after the agreement is signed.

The development offers Fajarbaru an opportunity to expand its presence in Penang, especially within the healthcare and mixed-use development sectors. Of the 51.17 acres in Parcel 1, 15.3 acres will be designated for healthcare components, including a 200-bed hospital and various medical facilities. The remaining 35.8 acres will be allocated for residential and commercial developments, supporting the vision of creating a vibrant mixed-use hub in Batu Kawan.

Fajarbaru and PDC have outlined several conditions that must be met before the master PDA can be finalized. These include securing pre-establishment approval for hospital zoning from the Ministry of Health and identifying an operator for the hospital within 12 months. PDC will also be responsible for obtaining freehold status approval from the state authority, while Fajarbaru needs to secure shareholder approval within six months.

In addition to the medical city, the 235.8-acre master plan will feature a wellness village, a medical education hub, a health-tech park, a waterfront commercial centre, and seaview residences. Fajarbaru also announced a profit-sharing agreement with PDC, with a minimum rate of 15% for the mixed-use development on Parcel 1, payable over eight years.

Fajarbaru plans to fund the project through a mix of internal funds, bank loans, and equity funding. The company, which ended June 2024 with a net cash position of RM83.65 million, saw its shares rise slightly by 1.2% to close at 43 sen, giving it a market capitalisation of RM320.22 million.

The RM8.5 million road expansion and median construction project at Jalan Alma and Jalan Bukit Minyak (Phase 1) has officially been completed, aiming to improve traffic conditions in the area.

Penang infrastructure, transport and digital committee chairman, Zairil Khir Johari, stated that the project, executed by the Public Works Department (JKR), commenced in January 2022 and was completed in August this year.

The scope of the project includes a 1.1-kilometre stretch from Jalan Bukit Minyak near Kota Permai junction to Jalan Alma in front of the Shell petrol station. The project involved widening the road into four lanes, constructing a median, and installing streetlights.

In addition, a pedestrian and motorcycle bridge was built to provide safer access for students and residents in the area, especially for those going to the schools located along Jalan Bukit Minyak.

As for the second phase of the project, which covers a 2-kilometre stretch from the Bukit Minyak flyover (near the Shell petrol station) to the Permatang Tinggi junction, Zairil mentioned that funding is still being arranged. This phase is estimated to cost around RM12 million.

Zairil explained that since the second phase involves land acquisition, approximately RM5 million to RM6 million will be needed for that purpose, accounting for nearly half of the total project cost. The state government is currently reviewing the financing options for this phase.

He expressed gratitude to all parties involved in the successful completion of the first phase, which demonstrates the Penang state government’s commitment to improving road safety and infrastructure.

About Queens Residences 3

The third phase of the Queens Waterfront development by Ideal Property Group (also known as Q3), situated near Queensbay in Penang. Positioned strategically on reclaimed seafront land directly opposite Queensbay Mall, it’s an expansion of the successful Q1 and Q2. The new phase of development will introduce another 532 residential units, offering a choice of five different layouts ranging from 950 sq.ft. to 1,400 sq.ft.

Find out more about Queens Residences 3

A proposed affordable housing development in Teluk Kumbar, located near Jalan Kekabu 5 and accessible via Jalan Batu Maung. It is just a stone’s throw away from the upcoming Silicon Island and about a 5-minute drive from the Penang 2nd Bridge and a 10-minute drive to Penang International Airport. Nearby amenities include SK Permatang Damar Laut, Esen Beach, and several popular seafood restaurants.

This development will feature a 28-storey apartment building, comprising a total of 484 affordable housing units with a 6-level car parking podium. It will also include residents’ facilities, located on level 7.

The project is still pending for approval. More details will be available upon official launch.

Project Name : (to be confirmed)
Location : Batu Maung
Property Type : Affordable housing
Tenure: (to be confirmed)
Land Area: (to be confirmed)
Built-up Size: (to be confirmed)
Total Units : 484
Indicative Price : RM300k (affordable housing price guide)
Developer : (follow us to receive future update)

DISCLAIMER: This article is solely based on research done using publicly available data. This is not an advertisement. Any claim, statistic, quote or other representation about a project or service should be verified with the developer, provider, or party in question.

About Sactuary Row

A freehold commercial development at Permatang Sanctuary by IJM in Bukit Mertajam. Located along Jalan Santuari 2, right across the road from Sanctuary Villa. It is only 2km away from AEON Mall and Tesco Hypermarket, about 15-minute drive to Juru Auto-City and Penang Second Bridge. This development features 24 units of double-storey shop offices.

*Photo taken in Sep 2024

Find out more about Sanctuary Row