A joint venture in which Perennial Real Estate Holdings has a 50 per cent stake has unveiled its integrated mixed-use waterfront development in Penang, Malaysia.

The project, The Light City, which is being billed as a landmark project, sits in the Gelugor suburb on the eastern coast of Penang, with an expected total gross development value of more than RM4.5 billion (S$1.5 billion).

Construction at the 13.26ha freehold site is expected to commence soon and will be completed by 2021, said Perennial in a joint statement with Malaysia's IJM Corporation yesterday.

The two companies each hold a 50 per cent stake in the joint venture, IJM Perennial Development.

The Light City, set to have a total gross floor area of about 4.1 million sq ft, will comprise a retail mall, the largest convention centre in Penang, two luxury hotels, an office tower as well as two premium residential projects, The Mezzo and The Essence.

For example, the two-level convention centre, to be known as Penang Waterfront Convention Centre, will span about 270,000 sq ft in gross floor area. It will house a 76,000 sq ft multi-purpose hall, a grand ballroom with a seating capacity of 800 and pre-function areas with sea views.

Located near the famous Penang Bridge, the development is also a short drive from the Penang International Airport and is easily accessible by the Tun Dr Lim Chong Eu Expressway.

Mr Edward Chong, managing director of IJM Land and director of IJM Perennial Development, said: "The Light City will not only elevate Penang's stature as the destination of choice for retail, shopping and Mice, but also create a host of job opportunities for Penangites and attract tourists, investors and meeting organisers for world-class events."

Mice refers to the tourism sector of meetings, incentives, conferences and exhibitions.

Mr Pua Seck Guan, chief executive of Perennial and director of IJM Perennial Development, added that The Light City is endowed with a coveted location, designed with a good asset plan and will provide an exceptional suite of offerings within a modern architecture with a heritage setting.

"Upon its completion, The Light City will be one of the most iconic developments in Malaysia and one of the best integrated waterfront precincts in the region," said Mr Pua.

Perennial shares finished 1.8 per cent or 1.5 cents up at 87 cents yesterday, before the announcement was made.

On Monday, the company posted a surge in first-quarter net profit to $38.7 million, more than quadruple the $8.5 million booked in the year before. This was largely due to a divestment gain from the sale of a partial stake in a property asset near Orchard Road, it said.