IJM Land partners Singapore firm for RM3b Penang waterfront project

PETALING JAYA: IJM Land Bhd is partnering Singapore's Perennial Real Estate Holdings Ltd (PREH) to jointly acquire and develop a RM3 billion waterfront integrated project in Penang.
Under an equal partnership, IJM Land and PREH will buy 32.76 acres of freehold waterfront site from Jelutong Development Sdn Bhd, a subsidiary of IJM Land, and develop it into a large-scale integrated mixed-use project in Gelugor on Penang Island.
"To be completed in phases, starting from 2018, the total development cost for the project is estimated to be over RM3 billion," IJM said in a statement yesterday.
The partners plan to fund the project development through a combination of internal funds, bank loans and sales proceeds from the sale of the residential and office components to optimise cash flow.
Positioned as Penang's first mega integrated waterfront icon, the development is expected to house retail, entertainment, recreational, residential, business, hospitality and meetings, incentives, conventions and exhibitions (MICE) components.
Spanning about 4.1 million sq ft the development is expected to comprise a shopping mall and thematic shops (38%), residential towers (26%), an office tower (16%), two hotels (13% with over 750 rooms) and a convention centre (7%).
The JV will leverage on the combined strengths and expertise of both companies.
PREH is an integrated real estate owner, developer and manager listed on the main board of the Singapore Exchange.
The group focuses on large scale mixed-use developments primarily in China and Singapore. The group owns interests in and manages a diversified portfolio measuring about 36.5 million sq ft and over 2 million sq ft in gross floor area in the both countries.