KUALA LUMPUR: IJM Land Bhd, the property development arm of IJM Corp Bhd (fundamental: 1.1; valuation: 1.4), has teamed up with Singapore-based Perennial Real Estate Holdings Ltd (PREH) to acquire and develop a 32.76-acre (13.25ha) parcel of freehold waterfront land in Gelugor, Penang into a large-scale integrated mixed-use development.
“Estimated to be completed in phases, starting from 2018, the total development cost for the project is estimated to be over RM3 billion,” said IJM Land in a statement yesterday.
IJM Land and PREH will form a joint-venture (JV) company called Aura Hebat Sdn Bhd, in which each will have an effective 50% stake.
The JV will acquire the site from Jelutong Development Sdn Bhd, a subsidiary of IJM Land.
IJM Land said it and PREH will 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.
The proposed mixed-use development will feature retail, entertainment, recreational, residential, business, hospitality and meeting, incentive, convention and exhibition components.
“Spanning about 4.1 million sq ft in total gross floor area, the preliminary concept of the one-stop destination is expected to comprise a shopping mall and thematic shops (taking up 38% of floor area), residential towers (26%), an office tower (16%), two hotels (13% with over 750 rooms) and a convention centre (7%),” it added.
The integrated development will be complemented by the adjacent Phase 1 of The Light Waterfront Penang, a residential development which is being developed by IJM Land.
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This article first appeared in The Edge Financial Daily, on April 28, 2015.