IKEA’s Entry Into Batu Kawan Is A Vote Of Confidence For Penang And A Boost To Making Seberang Perai As The Future Choice For Investments, Tourism & Habitat For Sustainable Living
The State Government and PDC’s strategic plans for Batu Kawan will receive an additional boost with the sale of 245 acres of land for the purpose of development of an integrated shopping mall, anchored by an IKEA store to be developed by Ikano Pte Ltd, and mixed development of offices and residences to be developed jointly by Aspen-Ikano (a joint venture company to be formed by Aspen Vision Land Sdn Bhd and Ikano Pte Ltd).
At the press conference, Chief Minister Lim Guan Eng, in welcoming this new investment by Aspen and Ikano, said the 245 acres development in Batu Kawan will include: • 30 acres for the development of IKEA Store and phase 1 of the Shopping Mall • 45 acres for the development of phase 2 of the Shopping Mall; and • 170 acres for mixed development purposes (Remaining Parcels)
The total land cost for the project is RM 483,951,600 and payment is to be made within 60 months from the date of Agreement. A RM 5 million non-refundable deposit has also being paid to PDC.
Also present in the press conference were PDC General Manager Dato’ Rosli Jaafar, Aspen Group Founder and Group CEO Dato’ M Murly, Aspen Group Co-Founder & Chairman Dato’ Seri Nazir Ariff, Executive Directors Dr. Lim Su Kiat and Mr Lee Peng Cheong and General Manager Ir Woo Kok Weng.
Chief Minister Lim Guan Eng informed that the entire commercial and mixed developments on the 245 acres of land are expected to be completed within 10 years from the date of Agreement. Notwithstanding that, the IKEA Store is to be developed and completed within the time frame mutually acceptable by both parties. The time frame that all parties are targeting at is about 5 years or sooner, depending on various surrounding, economic and demand factors.
Aspen and Ikano are expected to submit their development plans to Local Authorities this year and estimated to commence development activities by end of the year or early next year. In line with Aspen’s vision and strategies, a major part of the residential component will cater for the mass market with affordably priced and quality eco-friendly homes.
This development is in line with PDC’s policy to promote and sell land to attract catalyst projects to Bandar Cassia, Batu Kawan. In doing so, PDC plans to provide services that will help complement the Industrial development sector for example in developing commercial centres, premium designer outlets, specialist hospital and international schools.
Over the past years, the state government and PDC have been successful in wooing marquee investors to develop key projects in Batu Kawan.
The success story is inclusive of the planned development of educational investments and facilities such as KDU University College, University of Hull which will establish their school of Engineering, Accountancy, Law, Business Studies and Logistics.
To complement this rapid development, the state government and PDC have also planned for the development of 11,800 units of public housing (less than RM 72,000 per unit) and affordable housing (between RM 72,000 – RM 250,000 per unit), thus setting the road map to make Batu Kawan a quality residential area for the future.
Penangites have waited for many years for IKEA to open for business. Penang is proud that IKEA has chosen Batu Kawan as the first IKEA store outside Kuala Lumpur. With IKEA’s presence, the state government hopes that PDC will succeed in its efforts to make Batu Kawan a more attractive place for those from the island to live, learn, work and play.
With an integrated commercial, advanced manufacturing and services hub together with good universities setting up shop in Batu Kawan, Seberang Perai Selatan would be as good as those from other parts of the state. The total value of IKEA investments will be made known when their key management personnel visits me next month.
The state government is confident that the entry of IKEA into Batu Kawan is a vote of confidence for Penang and a boost to making Seberang Perai as the future choice for investments, tourism and habitat for sustainable living.