PETALING JAYA: Eastern & Oriental Bhd
(E&O) has signed a partnership agreement with Retirement Inc Fund (KWAP) to take on Phase 2A of the Seri Tanjung Pinang (STP) development project in Penang.
It is known that both E&O and KWAP have signed the partnership agreement this morning. The partnership will see KWAP pumping capital in the sea-fronting development project near Penang island and also to take up a substantial stake in E&O.
This would be KWAP’s first property partnership.
Trading in the shares of E&O was voluntarily suspended from 9am on Thursday.
The project, Phase 2A, involves reclaiming 253 acres (102.38ha) of land, which has an estimated gross development value of RM20bil.
STP is a seafront development situated along Penang’s north-east coast between George Town and the beaches of Batu Ferringhi.
The reclamation project STP2 has already begun dredging works after securing all the necessary approvals.
The entire STP Phase 2 encompasses land reclamation of up to 760 acres under E&O’s concession. Phase 2A only makes up one-third of the reclaimable land.
Last year, the expiry for E&O to undertake the land reclamation was extended from 2019 by three years to 2022. The project was originally approved by the state government back in 1992.
Aside from the reclamation of 760 acres under the project’s concession agreement, which is slated to be completed by June 2018, E&O is reclaiming a further 131 acres at its own cost along the Gurney Drive foreshore for the Penang state government.
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