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KUALA LUMPUR: Eastern & Oriental Bhd (E&O) has received approval for Phase 2 of its proposed mixed integrated development in Tanjong Tokong, Penang.
In a filing with Bursa Malaysia, E&O said the company received the letter dated Monday, Apr 11 from Jabatan Perancang Bandar dan Desa, Pulau Pinang, which communicated the state's in-principle approval of the masterplan submitted by E&O's unit Tanjung Pinang Development Sdn Bhd (TPD). The approval, for the proposed mixed integrated development, is concerning the land to be reclaimed in Tanjong Tokong, Penang (under Phase 2).
According to the filing, in 1992, TPD was granted the exclusive right to reclaim and develop approximately 980 acres of land in the district of Tanjong Tokong in the northeast coast of Penang. To date, the group has reclaimed and is continuing to develop Phase 1 of the project comprising approximately 240 acres of land under the name Seri Tanjung Pinang.
The group, through TPD, had sought the state's approval to reclaim the balance concession area of approximately 740 acres.
The announcement said the in-principle approval is conditional upon several terms and conditions, including that TPD's masterplan must comply with all technical requirements and other conditions associated with planning approvals. To protect public interests, it said TPD's masterplan will be subjected to closer scrutiny by the state government, although TPD may undertake the relevant technical studies at its own cost and expense, but without the state government incurring any liability or obligations.
"E&O would nevertheless like to emphasise that whilst the in-principle approval is a vital step towards being able to reclaim the balance concession area, there are other steps still to be undertaken and approvals to be obtained before reclamation works can actually commence.
"Not least of all will be a satisfactory environmental impact assessment study which will entail traffic impact assessments by the relevant authorities," said the company, adding that it is of the view that E&O would derive substantial benefits in the long run.
Located just 15 minutes' drive from George Town and five minutes' drive to Gurney Drive, the freehold Seri Tanjung Pinang launched its first homes back in 2005. The Ariza courtyard terraces were sold from RM735,000, while similar units were sold from RM795,000 during its second launch a year later. Ariza terraces are 2½-storey terraced homes with built-ups ranging from 3,200 to 3,800 sq ft. The final launch of Ariza in 2009 saw the homes being sold from RM1.15 million.
Last year, E&O launched the Quayside, the first high-rise development within Seri Tanjung Pinang. Quayside has a gross development value of RM1.8 billion on a 21-acre freehold tract right next to a marina. It comprises seven blocks of condominiums (7 to 28 storeys) with a total of 1,208 units, housed in five high-rise towers and two low-rise seven-storey towers. The development also includes a 4.5-acre private waterpark and a clubhouse. The private park is about the size of 2½ football fields.
While E&O is synonymous with the famous hotel in Penang, with colonial architecture and bearing the same name, Seri Tanjung Pinang is the jewel in its crown.
The project, one of Penang's hottest residential addresses, benefits from the island's booming property market. It also benefits from being near the city centre, its seafront location and E&O's strong branding.
Analysts say Seri Tanjung Pinang gives E&O access to a large and prime landbank of up to 980 acres, which it can reclaim progressively. Selling prices for its homes there have surged strongly, far outpacing the rise in reclamation costs, an analyst noted.
E&O shares fell two sen to RM1.17 on Tuesday on a volume of 1.74 million shares. The stock was trading below its net assets per share of RM1.20 as at Dec 31, 2010.
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