>RM800m worth of properties for sale this year.
Second Penang Bridge to spur development in South Seberang Perai
We expect the Second Penang Bridge to have a major positive impact on the development of South Seberang Perai. In Batu Kawan, Penang Development Corporation (“PDC”) owns 6,717 acres of land bank, of which it plans to develop 1,640-acre of affordable residential units, 1,184-acres of industrial park, 641-acre of commercial area and other amenities/ infrastructure (government buildings, university, international golf & resort, etc). PDC has sold 400-500 acres of Batu Kawan industrial land at RM30psf nd it has invited qualified companies to submit their request for proposal to build a premium outlet on a 40-acre piece of land in Batu Kawan. We believe that the ensuing economic activities following the improved connectivity to Penang Island will have a positive impact on the South Seberang Perai property demand and price. Tambun Indah, a Seberang Perai-based developer with over 540 acres of land bank in South Seberang Perai, is a good proxy to the South Seberang Perai property market. Over 2010-2012, Tambun Indah’s property sales and net profit had grown strongly, partly driven by the strong take-up for its Pearl City project a gated & guarded project in Simpang Ampat.