Ewein subsidiary buying Penang land for RM2.8b (Update)

KUALA LUMPUR: Ewein Bhd’s subsidiary is buying 50 acres of land at Bandar Tanjong Pinang, Penang for RM2.83bil for a proposed “Wellness City of Dreams” resort.

The Penang-based property company said on Friday its 60% owned Ewein Zenith Sdn. Bhd had inked a memorandum of agreement to buy the land from Consortium Zenith BUCG Sdn. Bhd at RM1,300 per sq ft.

At 2.178 million sq ft, the purchase price would be RM2.83bil, it said.

The development would comprise a wellness resort, apartments, resort, retirement and healthcare residential suites, serviced apartments with wellness facilities, SOHO and ambulatory services.

“The proposal will be funded entirely by internally generated funds of Ewein,” it said. 

Ewein said the proposal was in line with the group’s strategy to increase its land bank in order to expand the group’s revenue base particularly in the property development division.  

The directors of Ewin Senith are Datuk Ewe Swee Kheng, Datuk Zarul Ahmad Mohd Zulkifli, Chan Gooi Yew, Datuk Lee Chee Hoe and Chuah Poh Lim.

Consortium Zenith's core activities are construction and project management. The directors of are Datuk Zarul Ahmad Mohd Zulkifli, Datuk Lee Chee Hoe, Datuk Abdullah Sani Ab Hamid, Shahidan Shafie, Wong Kwai Wah, Harjinder Singh A/L Saudagar Singh, Ibrahim Sahari and Li Guangyao.

Ewein said on Dec 28 last year, Consortium Zenith had signed a sale and purchase agreement with Ewein Zenith II Sdn Bhd, a 60% subsidiary of Ewein to dispose all that piece of freehold land in Section 1, Bandar Tanjong Pinang.

The 4.4252 acres (192,761.7 square feet) of land was for RM162mil.

According to the statement then, the proposed acquisition is in line with Ewein’s strategy to increase its landbank in order to expand the group’s revenue base, particularly in the property development division. 

"In light of the strategic location of the land, which is in a matured and established prime area for residential and commercial purposes, the board opines that the said land is strategic for the future development of the group,” deputy chairman and group managing director Datuk Ewe Swee Kheng had stated then.

The remaining 40% of Ewein Zenith II is held by Consortium Zenith, a construction company that was awarded the works for the major roads project and the third link (tunnel) project in Penang by the State Government of Penang for RM6.3bil.

Ewein expects to complete the acquisition in the first half of 2016. The company plans to develop residential and commercial properties on the land.

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