KUALA LUMPUR: Aspen Group Holdings Sdn Bhd, through its subsidiary Aspen Vision City Sdn Bhd, has signed a loan deal totalling RM196 million with OCBC Bank (M) Bhd to finance the development of Phase 1 of the multibillion-ringgit Aspen Vision City project in Batu Kawan, Penang.

The agreement features a term loan for the purchase of land and a bridging loan for the construction of the development.

The first phase of Aspen Vision City, known as Verve, features a 35-acre (14.16ha) gated and guarded commercial and business district replete with 441 units of three- and four-storey shop offices. With a gross development value of RM780 million, Phase 1 is scheduled for completion in 2018.

Aspen Group chief executive officer (CEO) Datuk Murly Manokharan said the group is focusing the first phase of the Aspen Vision City project on building commercial properties to create a solid foundation for a thriving business hub, before undertaking mixed development projects in the second phase.

“It is important to get the first phase right and we are pleased with the enthusiasm, confidence and partnership shown by OCBC Bank in helping us to get the project off the ground on a firm footing. The first phase will ensure that the development is economically viable and yields high returns for its investors,” he said in a statement.

Bookings to date stand at over 85%, above what Aspen Group had expected at this stage of the exercise.

“We started the earthworks last month, and we are excited about the progress we are making,” said Murly.

OCBC Bank CEO Ong Eng Bin said the bank is pleased to be at the forefront of a visionary project that is set to revolutionise the mainland of Penang.

“When we opened our own banking branch in Batu Maung way back in 2006 — the first commercial bank in the area — we had set our sights firmly on the Second Penang Bridge becoming a catalyst to pave the way for significant development in both Batu Maung and Batu Kawan.

“Aspen Vision City represents the culmination of our own belief and confidence in the development of this area, and we are pleased to be playing our own part — nine years after opening our branch on the other side of the bridge — in kicking off the entire project through this loan agreement for the development of Verve,” he added.

Apart from Verve, Aspen Vision City also features the first Ikea store and regional integrated shopping centre in the north, both developed and managed by Ikano Pte Ltd.

Ikano managing director Christian Rojkjaer said it is preparing detailed planning for an Ikea store and integrated shopping centre there, with targets for completion in 2018 and 2020, respectively.

The entire Aspen Vision City project is scheduled for completion in 2025, featuring a mixed development spanning across 245 acres of freehold land in the Bandar Cassia township, and is poised to become the next integrated central business district of Penang.

This article first appeared in The Edge Financial Daily, on June 22, 2015.

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