PETALING JAYA (Feb 29): Eco World Development Bhd (EcoWorld) is acquiring a 300-acre leasehold parcel in Mukim 13, Seberang Perai, owned by Batu Kawan Development Sdn Bhd (formerly Abad Naluri Sdn Bhd).
Both parties are currently in talks and are expected to finalise the deal soon, a source told TheEdgeProperty.com. The land is located just off the Sultan Abdul Halim Muadzam Shah Bridge, more popularly known as the Penang Second Bridge.
A spokesperson for EcoWorld declined to comment on the deal.
On Oct 10, 2012, Batu Kawan Development had entered into a joint-venture development agreement with Malton Bhd’s indirect subsidiary Silver Setup Sdn Bhd (SSSB) to develop a township with a gross development value (GDV) of RM3.8 billion.
Under the agreement, SSSB is entitled to 82% of the GDV and is solely responsible for funding the entire project, while Batu Kawan Holdings is entitled to 18% of the GDV, subject to no less than RM300 million.
The first phase of the development was scheduled to launch in 2014, but there has been no update on the project.
According to Malton’s 2015 annual report, no significant property development work has been undertaken by SSSB as at June 30 last year.
It is understood that Malton is reviewing its plans for the township.
This parcel would mark EcoWorld’s third venture into Penang’s mainland, with its first two being EcoMeadows – a RM918 million, 76.5-acre gated-and-guarded strata development in Seberang Perai Selatan – and Eco Marina, a RM10 billion, 299.64-acre township with a 150-acre golf course land in Batu Kawan.
The township land and golf course land were acquired and leased from Penang Development Corporation.