Tambun Indah developing five Penang projects valued at RM571m

GEORGE TOWN: Tambun Indah Land Bhd is undertaking five development projects in Penang with a combined gross development value (GDV) of around RM571.5mil this year.

The projects are the RM131.3mil Pearl Indah and RM180mil Pearl Residence 1 in Simpang Ampat; RM39.3mil BM Residence in Bukit Mertajam; RM41mil Carissa Villas in Bagan Lallang; and RM180mil Straits Garden in Jelutong on the island.

Group managing director Teh Kiak Seng told StarBizWeek after an EGM that with the exception of the Straits Garden project in Jelutong that would be launched in the third quarter of 2012, the construction for the other four projects had started.

“Both Pearl Indah and Pearl Residence 1 are in the RM2bil Pearl City project, where we plan to build some 5,600 landed residential properties and 1,400 commercial properties.

“The first two phases of the Pearl City project the Pearl Garden and Pearl Villas are 90% and 80% sold respectively. Some 41% and 28% of the purchasers for Pearl Villas and Pearl Garden respectively are from the island,” he said.

The funding of the projects would be through the issuance of 88.4 million rights issues of new shares that would raise RM44.2mil for the group.

The two-for-five rights issues, which were approved at the EGM and expected to be completed in June, would effectively increase Tambun Indah's share capital to RM154.7mil, comprising 309.4 million shares.

“We have a landbank of 625 acres, which has a GDV of RM2.8bil. We are constantly on the lookout for more land in Penang. We are also exploring land outside of Penang,” he said.

Teh said the Penang property market was expected to chart commendable growth in the coming years, as it had been identified as one of the world's top 10 most dynamic industrial clusters and contributed 28% or RM17.7bil of Malaysia's total foreign direct investment in 2010-2011.

“In addition, the Malaysia My Second Home initiatives over the past years have resulted in a spill-over benefit for Penang's property market,” he said.

“As for properties in Seberang Prai, we believe the prices will be well sustained, due to the completion of the second link in 2013, which will have a positive effect on properties in Batu Kawan and Simpang Ampat.”

The rising prices on the island were prompting many young families to explore properties in Seberang Prai for quality lifestyle at affordable prices, Teh added.

By The Star