KUALA LUMPUR: Construction outfit, Kerjaya Prospek Group Bhd's subsidiary, Futuprop Sdn Bhd, and Aspen Vision Development Sdn Bhd have won an open tender by the Railway Assets Corporation (RAC) to develop a 14.57-hectare land it owns in Seberang Perai Tengah, Penang.
RAC is a federal statutory body to manage and maintain railway-related assets and undertake development and redevelopment of the railway industry in Malaysia.
Kerjaya Prospek and Aspen Vision participated in the open tender issued by RAC on Aug 23, 2023.
Kerjaya Prospek in a statement said the development will primarily comprise 338 units of affordable housing, 1,680 residential units, 1,680 serviced apartments, as well as commercial retail shops and offices.
It said the construction, which is expected to start by end 2024, is planned to be completed in stages over a period of seven years.
Kerjaya Prospek will hold a controlling stake of 55 per cent in the special purpose vehicle, Rivanis Ventures Sdn. Bhd, while Aspen Vision will hold the remainder.
Aspen Vision is a unit of Singapore's Aspen Group Holdings Ltd.
According to Kerjaya Prospek, the land is close to Penang Sentral, a major transportation hub that will feature a light rail transit (LRT) terminal.
The LRT expansion at Penang Sentral, together with the upcoming Juru-Sungai Dua Elevated Highway, will further enhance accessibility and connectivity to the area.
As consideration for the sale of the said land to carry out the proposed development, RM156.5 million will be provided to RAC, comprising RM54.1 million cash and 338 units of affordable housing worth RM102.4 million in accordance with the Affordable Housing Category C3 specifications established by the Penang state government.
Later on, as the next phase to this development, Rivanis Ventures will be given the first right of refusal to develop the adjacent land measuring 7.96 hectares.
Kerjaya Prospek chief executive officer and executive director Tee Eng Tiong said this project presents a unique opportunity to create sustainable, high-quality residential and commercial spaces in Penang.
"This venture reflects our shared vision to support Penang's urban development and enhance accessibility for the community. "The subsequent right of refusal to develop the adjacent land provides potential for further expansion, reinforcing our growing footprint in Penang's property market," he added.
Kerjaya Prospek's share price was up 0.7 per cent to 71 sen a share.