The Penang Chief Minister has revealed details of the re-negotiated Batu Kawan deals between PDC and Abad Naluri involving 750 acres of land.
Under the revised agreement, the 300 acres for the equestrian track will be relocated elsewhere so that PDC can create a 1,400-acre industrial park.
The original lopsided 2004 agreement between PDC and Abad Naluri should be made public soon so that we can see whether its terms, conditions, payment period, and completion deadlines were all fulfilled within the time frame stipulated back then. That would show us whether or not that 2004 agreement should still stand.
Back then, we did not really know who owned Abad Naluri. It was Patrick Lim’s Equine that was always in the limelight – but Equine only had a 25 per cent in Abad Naluri. Who were the real people behind Abad Naluri?
What puzzles me is how PDC arrived at a RM3-4psf valuation in 2004 when the land is prime land next to the second Penang Bridge. Considering that the market price of Batu Kawan land today is around RM20psf, the deal, whichever way I look at it, is a huge loss to the people of Penang. Sad.
PENJUALAN TANAH DI BATU KAWAN KEPADA ABAD NALURI SDN. BHD. (EN)
by CM Lim Guan Eng
SALE OF BATU KAWAN LAND TO ABAD NALURI SDN BHD
The Penang state government’s continuous efforts to accommodate for an improved development in Batu Kawan in line with its effort to promote focused development across all of Penang
Background Facts
In 2002, the state government, as it was then, via the Penang Development Corporation (PDC) approved the sales of 750 acres of land in Batu Kawan to Abad Naluri Sdn Bhd (ANSB). The development was planned in six different phases, each divided into Parcels 1, 2A, 2B 3A, 3B and 4 respectively of which mixed development projects were planned on Parcels 1, 2A, 2B 3A, and 3B measuring 450 acres in total. The development of Parcel 4 was confined to the development of a Penang International Equesterian Centre (PIEC) measuring approximately 300 acres.
The Principal Agreement and the S&P Agreements for Parcels 1 & 2A were signed on 16th January 2004.
Taking into account the current development requirements, the current state government initiated a re-negotiation process with ANSB in 2008 to proceed with the development of the remaining parcels since the S&P Agreements for Parcels 2B, 3A and 3B were yet to be signed. After serious negotiations and discussions between both parties, a decision was finally made and agreed upon by both parties early this year.
New Terms
The current state government, via PDC has recently signed the S&P Agreement for Parcels 2B & 4 on 31st March 2011. PDC has renegotiated the terms of the previous arrangements and has agreed to relocate Parcel 4, which was previously allocated to ANSB for the development of the PIEC.
The location of Parcel 4 has now been changed to a different area. Also, the purpose of which Parcel 4 was initially sold to ANSB, has now been re-assessed to a mixed development comprising of various projects focusing on housing, commercial, and institutional developments, among others.
In light of the above, the new arrangement shall allow for an additional 300 acres of Land for the purposes of industrial development. Further, the relocation of Parcel 4 shall now allow for an improved development plan, as there shall now be 1400 acres of contiguous land for planned industrial development. In addition to the former, the value of Parcel 4 has been significantly enhanced. The new arrangement also compels for the resumption of the abandoned housing development on Parcels 1 and 2A.
Details of the Benefits
Additional land for development
As a result of the re-negotiation, Batu Kawan shall now have further 300 acres of land for industrial development, in resonance with the proposed industrial park in Batu Kawan. And now that Parcel 4 has been relocated to a different location, the proposed industrial park shall consist of an area measuring 1400 acres of contiguous land to be developed by PDC.
Enhanced value of land
Previously, 150 acres of the land with earthworks was valued at RM4.00 psf, while the remaining 150 acres of the land without any earthworks were valued at RM3.05 psf.
The change in the development of Parcel 4 from the PIEC to the proposed mixed development has benefited PDC by enhancing the value of the land from RM3.05 psf to RM4.77 amounting to an increased value of RM22,500,000.00.(Approximately 56% increase in value of the land)
PDC is now also exempted from the responsibility of providing the land completed with earthworks to ANSB. Since the earthworks are currently valued at RM4.00 psf, the new approach has allowed PDC to save approximately RM26,136,000.00 to that effect. (The earthworks for the land were previously calculated at RM0.95 psf)
Completion of the abandoned housing projects in Parcels 1 and 2A
In tandem with the new arrangement, ANSB has also pledged to continue with the development of the housing units of which it has currently abandoned due to commercial obstructions/obstacles. Under the new arrangement, ANSB has pledged to complete the abandoned housing project by June 2011. The aforesaid shall be subject to an automatic extension of time until the end of December 2011 and must be issued with the Certificate of Fitness for Occupation.
Summary
The new terms are expected to benefit the state development plans as the state government will now be able to implement a more focused development in the Batu Kawan industrial park apart from generating more employment opportunities to the people of Penang.
With the development of various projects on Parcel 4 focusing on housing, commercial, and institutional developments, PDC foresees the new development approach as catalyst to encourage major economic and social development in Batu Kawan.
The new approach shall allow the state government together with the PDC to re-plan and develop the southern part of Batu Kawan into the proposed industrial park to further develop Penang as the ideal location for technology, industry and business to promote a sustainable economic growth and prosperity for the people of Penang and Malaysia.
Since the S&P for Parcels 1 & 2A were signed in 2004 and Parcels 2B & 4 were signed recently, the S&P for Parcels 3A and 3B remain to be concluded. ANSB has been given until 30th September 2013 to conclude the transaction. All the parcels are expected to be fully developed by ANSB by the Year 2021.
Under the revised agreement, the 300 acres for the equestrian track will be relocated elsewhere so that PDC can create a 1,400-acre industrial park.
The original lopsided 2004 agreement between PDC and Abad Naluri should be made public soon so that we can see whether its terms, conditions, payment period, and completion deadlines were all fulfilled within the time frame stipulated back then. That would show us whether or not that 2004 agreement should still stand.
Back then, we did not really know who owned Abad Naluri. It was Patrick Lim’s Equine that was always in the limelight – but Equine only had a 25 per cent in Abad Naluri. Who were the real people behind Abad Naluri?
What puzzles me is how PDC arrived at a RM3-4psf valuation in 2004 when the land is prime land next to the second Penang Bridge. Considering that the market price of Batu Kawan land today is around RM20psf, the deal, whichever way I look at it, is a huge loss to the people of Penang. Sad.
PENJUALAN TANAH DI BATU KAWAN KEPADA ABAD NALURI SDN. BHD. (EN)
by CM Lim Guan Eng
SALE OF BATU KAWAN LAND TO ABAD NALURI SDN BHD
The Penang state government’s continuous efforts to accommodate for an improved development in Batu Kawan in line with its effort to promote focused development across all of Penang
Background Facts
In 2002, the state government, as it was then, via the Penang Development Corporation (PDC) approved the sales of 750 acres of land in Batu Kawan to Abad Naluri Sdn Bhd (ANSB). The development was planned in six different phases, each divided into Parcels 1, 2A, 2B 3A, 3B and 4 respectively of which mixed development projects were planned on Parcels 1, 2A, 2B 3A, and 3B measuring 450 acres in total. The development of Parcel 4 was confined to the development of a Penang International Equesterian Centre (PIEC) measuring approximately 300 acres.
The Principal Agreement and the S&P Agreements for Parcels 1 & 2A were signed on 16th January 2004.
Taking into account the current development requirements, the current state government initiated a re-negotiation process with ANSB in 2008 to proceed with the development of the remaining parcels since the S&P Agreements for Parcels 2B, 3A and 3B were yet to be signed. After serious negotiations and discussions between both parties, a decision was finally made and agreed upon by both parties early this year.
New Terms
The current state government, via PDC has recently signed the S&P Agreement for Parcels 2B & 4 on 31st March 2011. PDC has renegotiated the terms of the previous arrangements and has agreed to relocate Parcel 4, which was previously allocated to ANSB for the development of the PIEC.
The location of Parcel 4 has now been changed to a different area. Also, the purpose of which Parcel 4 was initially sold to ANSB, has now been re-assessed to a mixed development comprising of various projects focusing on housing, commercial, and institutional developments, among others.
In light of the above, the new arrangement shall allow for an additional 300 acres of Land for the purposes of industrial development. Further, the relocation of Parcel 4 shall now allow for an improved development plan, as there shall now be 1400 acres of contiguous land for planned industrial development. In addition to the former, the value of Parcel 4 has been significantly enhanced. The new arrangement also compels for the resumption of the abandoned housing development on Parcels 1 and 2A.
Details of the Benefits
Additional land for development
As a result of the re-negotiation, Batu Kawan shall now have further 300 acres of land for industrial development, in resonance with the proposed industrial park in Batu Kawan. And now that Parcel 4 has been relocated to a different location, the proposed industrial park shall consist of an area measuring 1400 acres of contiguous land to be developed by PDC.
Enhanced value of land
Previously, 150 acres of the land with earthworks was valued at RM4.00 psf, while the remaining 150 acres of the land without any earthworks were valued at RM3.05 psf.
The change in the development of Parcel 4 from the PIEC to the proposed mixed development has benefited PDC by enhancing the value of the land from RM3.05 psf to RM4.77 amounting to an increased value of RM22,500,000.00.(Approximately 56% increase in value of the land)
PDC is now also exempted from the responsibility of providing the land completed with earthworks to ANSB. Since the earthworks are currently valued at RM4.00 psf, the new approach has allowed PDC to save approximately RM26,136,000.00 to that effect. (The earthworks for the land were previously calculated at RM0.95 psf)
Completion of the abandoned housing projects in Parcels 1 and 2A
In tandem with the new arrangement, ANSB has also pledged to continue with the development of the housing units of which it has currently abandoned due to commercial obstructions/obstacles. Under the new arrangement, ANSB has pledged to complete the abandoned housing project by June 2011. The aforesaid shall be subject to an automatic extension of time until the end of December 2011 and must be issued with the Certificate of Fitness for Occupation.
Summary
The new terms are expected to benefit the state development plans as the state government will now be able to implement a more focused development in the Batu Kawan industrial park apart from generating more employment opportunities to the people of Penang.
With the development of various projects on Parcel 4 focusing on housing, commercial, and institutional developments, PDC foresees the new development approach as catalyst to encourage major economic and social development in Batu Kawan.
The new approach shall allow the state government together with the PDC to re-plan and develop the southern part of Batu Kawan into the proposed industrial park to further develop Penang as the ideal location for technology, industry and business to promote a sustainable economic growth and prosperity for the people of Penang and Malaysia.
Since the S&P for Parcels 1 & 2A were signed in 2004 and Parcels 2B & 4 were signed recently, the S&P for Parcels 3A and 3B remain to be concluded. ANSB has been given until 30th September 2013 to conclude the transaction. All the parcels are expected to be fully developed by ANSB by the Year 2021.
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