SINGAPORE - Catalist-listed Malaysian developer Aspen (Group) Holdings announced over the weekend that it is teaming up with mainboard-listed Oxley Holdings to develop a mixed-use integrated project in Penang.
The project is proposed to be developed in phases, comprising residential towers with communal facilities, serviced apartments, lifestyle retail facilities and a private clubhouse.
Aspen Group said in a news release that it expects this new development to be the key driver in contributing to its topline and bottomline from 2021.
Its subsidiary Aspen Park Hills has signed a conditional sales-and-purchase agreement with Geo Valley Sdn Bhd to acquire seven freehold land plots totalling 29.05 acres (1.27 million square feet) in Paya Terubong in Penang for RM165 million (S$54 million). Geo Valley will also invest 25 per cent equity in Aspen Park Hills.
Singapore-based property group Oxley's Malaysian subsidiary Oxley Holdings (Malaysia) is taking a 40 per cent stake in Aspen Vision Homes, which in turn holds a 75 per cent stake in Aspen Park Hills.
"Parts of the land are currently approved by the local council for mixed development and for the construction of part of the Jalan Bukit Kukus paired road linking Thean Teik Highway from Air Itam to Jalan Paya Terubong. The joint-venture partners intend to replan the development scheme to improve the project's viability and to accelerate the construction of the paired road for the benefit of the community," Aspen Group said in its release.
Sitting on elevated ground, the land is strategically located within a mature neighbourhood in the middle of Air Itam, Farlim and Paya Terubong and in close proximity to amenities such as schools, hospitals, eateries, wet markets, retail shops, supermarkets, tourist spots and services, it added.
"This prime land bank on Penang Island is at a choice location where as many as 400,000 people live, work and commute."
Aspen Group president and group chief executive officer M Murly said: "In Penang, it is not very often that we will come across such an opportunity to acquire a sizeable freehold land bank located in a mature community."